Legal regulation of banks with foreign capital in EU legislation

Abstract

Ukraine is in negotiations for deep and comprehensive integration with the EU, which involves adapting standards and rules. The regulation of banks with foreign capital plays a crucial role in this process, being a significant aspect for Ukraine as the country aims to deepen its economic ties with the EU. The research aims to identify the distinctive features and patterns that govern the legal regulation of the activities of foreign banks in EU countries. Historical-legal, special-legal, functional, formal-logical, dialectical-materialistic methods, and a systematic approach were employed in the study. The investigation revealed several directives at the EU level focused on regulating foreign investments and ensuring the security of investment processes within the EU’s internal market. The analysis indicated that these directives aim to ensure unity and effectiveness in controlling foreign investments in strategic sectors. They grant member countries the right to take measures to identify and control foreign investments that may pose a threat to security or public order. Additionally, they define obligations regarding information disclosure for foreign investors seeking control over European companies in strategic areas. Furthermore, they regulate financial instruments and services in the EU internal market, including services for foreign investors, and guarantee standards and transparency in operations on EU financial markets. The research concludes that these directives aim to create a unified and secure financial system in the EU, ensuring the protection of strategic sectors from unforeseen external interventions. This study can serve as a valuable tool for government officials, regulators, academics, and financial industry professionals in making informed decisions regarding further reforms and improvements in legislation for banks with foreign capital in the EU