D., Law Candidate of Legal Sciences, Associate Professor of the Ukrainian Academy of Banking icon

D., Law Candidate of Legal Sciences, Associate Professor of the Ukrainian Academy of Banking




Скачати 11.91 Kb.
НазваD., Law Candidate of Legal Sciences, Associate Professor of the Ukrainian Academy of Banking
Дата03.03.2014
Розмір11.91 Kb.
ТипДокументи

Anatoliy Tkachenko, Ph.D., Law Candidate of Legal Sciences,
Associate Professor of the Ukrainian Academy of Banking
of the National Bank of Ukraine, Ukraine

BANK COMPETITION AS AN OBJECT OF LEGAL REGULATION: HISTORY AND CONTEMPORANEITY


Bank competition has appeared later than competition in industry. In its classic understanding, as known, it appeared in the 19th century. Some researchers determine its beginning in the middle of the 19th century, others – in its second half. Without regard to the vagueness of its chronologic scopes, it is completely clear that its appearance in those terms was stipulated by the development of capitalism, because in the conditions of manufactory production economic competitiveness developed extraordinarily languid. The mentioned process has been substantially deepened by industrial revolution which caused growth of economy, foremost in industry.

The financial policy of banks changed in the period of industrial revolutions of the 19–20th centuries. Capital requirements began to grow, that caused the tendency of dynamic growth of the bank sector. However, its expansion was possible until certain period without entering into competitive activity. But in the 19th century the situation has changed. Concentration of production, increase of amount of capital, creation of monopolistic unions promoted concentrations and centralizations of bank capital. Mutual relations of banks and industrial enterprises start changing, merger of bank and industrial capital starts. From the middle of the 19th century investment of funds in the development of industry and transport draws large profits. Banks become the proprietors of property and more oriented on certain industries of economy.

Strengthening of competition was caused by increase of a number of economic agents. Banks began to compete for clients by granting advantageous offers. Banking market was the banking competition sector. Money and financial instruments, related to them, were its distinctive features. The specific character of competitive activity was the fact that it has become consequence of the legal banking activity registration as an exceptional kind of business, that didn’t allow combination with other kinds of activity.

Banks were specialized in certain types of financial operations. Saving Banks operated with people deposits, Investment Banks invested money into the certain sector of economy, Mortgage Banks gave long credits. Competition took place between Commercial Banks which were divided into universal and specialized. A distinct verge existed between these kinds of banks and that was related with a number of legislative operations limitations set for them.

Bank competition in the 20th century has been influenced by structural changes in the banking system. Operations which made the essence of banking activity, that is crediting of economy, securities agreements, not widespread non-cash payments, specialization of banks, in twenties of the 20th century have changed into expansion of cashless turnover, banking business rationalization, strengthening of concentration in the banking sector and as a consequence of which became takeover of small banks by big ones and their merge.

In sixties of the 20th century people money transformed into primary derivation of bank resources; expansion of mass operations of all credit institutes has happened. Liberalization of government control of commercial banks activity has happened, which considerably influenced on competition situation aggravation.

Presently there is subsequent strengthening of banking sector competition, growth of the value of non-price competition, globalization of banking competition.

Banking competition takes place in the conditions of governmental control. The most substantial directions of this activity are entrance barriers making, which set legal bank activity limitations, that hinder weak banks entrance to the market and thus do not allow the situation when competition becomes destructive. They are carried out by designating of minimal value of the chartered capital and licensing of banking activity.

Legislative base can make noticeable influence upon the banking system development and competition between banks. In some countries banks are forbidden to execute certain security-related operations, to invest in the capitals of enterprises. In a number of countries banks are not allowed to be engaged in insurance.

In the USA the double subordination system functions, when a bank can be established both by the government of a separate State and by the Federal government. Banks in, its turn, by law can choose jurisdiction (authority of regulation and control). In some countries in accordance with legislations Central Banks can be widely engaged in maintenance of economy, in other the basic function is concentrated on the issue of money in turnover and strengthening of their solvency.

Legislation works for development of the banking system not only by making interdicts. Numerous examples are known, when in accordance with this or that law this or that bank is established and destined to assist the development of this or that industry of the national economy.

At the same time inter-bank competition is a rather noticeable factor which determines development of the banking system. The presence of fair quantity of independent banks in a country creates circumstances in which banks are forced to enter the field, fighting for a client, improving services quality, extending services, offering new products to the market. In market economy countries the competition assists development of the banking system. In the legislation of these countries there are special provisions that bound monopolism formations in banking sector, as it is considered that monopolism, as antipode of competition, does not assist banking market development.

Lately in the conditions of banking competition strengthening in many countries a tendency to universalization of banking activity is exhibited . In the conditions of globalization and internationalization of the banking competition problems become acute. New problems in the field of regulation of competition relations predetermine the necessity of normative-and-legal bases perfection, in particular, passing laws on competition, as it has been done by the developed countries.

Схожі:

D., Law Candidate of Legal Sciences, Associate Professor of the Ukrainian Academy of Banking iconMi karpenko Candidate of Legal Sciences, Associate Professor of Criminal Law and Procedure Universities ' National Academy of Management

D., Law Candidate of Legal Sciences, Associate Professor of the Ukrainian Academy of Banking iconLegal regulation of social and legal protection service in ukraine V. Pashinsky Candidate of Legal Sciences

D., Law Candidate of Legal Sciences, Associate Professor of the Ukrainian Academy of Banking iconNv daraganov a Candidate Yurydychna sciences, assistant professor of law tsiv І lnogo that gospodarskogo bis " Natsionalna akadem І ya upravl І nnya "

D., Law Candidate of Legal Sciences, Associate Professor of the Ukrainian Academy of Banking iconLegal aspects of contract military service V. Pashinsky Candidate of Legal Sciences

D., Law Candidate of Legal Sciences, Associate Professor of the Ukrainian Academy of Banking iconCandidate of Pedagogical Sciences, Associate Professor The Institute of Physical Education and Sport
Обоснование представленных принципов педагогической системы профессионального развития будущего учителя физической культуры в условиях...
D., Law Candidate of Legal Sciences, Associate Professor of the Ukrainian Academy of Banking iconV. Muravyov Doctor of Law, Professor, Head of the Chair of Comparative and European Law Legal Reform in Ukraine

D., Law Candidate of Legal Sciences, Associate Professor of the Ukrainian Academy of Banking iconV. Muravyov Doctor of Law, Professor, Head of the Chair of Comparative and European Law Legal Reform in Ukraine

D., Law Candidate of Legal Sciences, Associate Professor of the Ukrainian Academy of Banking iconNeonatology
...
D., Law Candidate of Legal Sciences, Associate Professor of the Ukrainian Academy of Banking iconVeremchuk D. V., PhD, associate professor Kantaeva O. V., Doctor of Sciences, prof

D., Law Candidate of Legal Sciences, Associate Professor of the Ukrainian Academy of Banking iconVeremchuk D. V., PhD, associate professor Kantaeva O. V., Doctor of Sciences, prof

Додайте кнопку на своєму сайті:
Документи


База даних захищена авторським правом ©zavantag.com 2000-2013
При копіюванні матеріалу обов'язкове зазначення активного посилання відкритою для індексації.
звернутися до адміністрації
Документи