European Banking Union: the importance of a single supervisory mechanism in the context of Ukraine's European integration aspirations

Abstract

This article is devoted to the analysis of the structure and functioning of the European Banking Union, in particular the Single Supervisory Mechanism under the leadership of the European Central Bank. The paper examines the legal framework and practical aspects of banking supervision in the EU, the mechanisms of cooperation between the ECB and national competent authorities, as well as the possibilities of extending supervisory powers to countries outside the eurozone. Particular attention is paid to the significance of the experience of the EU Banking Union for Ukraine in the context of its European integration aspirations and the need to adapt banking legislation to European standards.

It is established that the creation of the European Banking Union has significantly strengthened the stability of the EU banking system through the introduction of uniform standards of supervision and regulation. It is determined that the dual mandate of the ECB as a competent and authorized body provides an effective mechanism of banking supervision, which combines centralized management with local expertise. The importance of a mechanism of close cooperation for countries outside the eurozone is proven, which creates opportunities for harmonization of banking supervision across the EU and is of particular importance for Ukraine in the context of its European integration.

It is determined that the ECB has broad powers to carry out supervisory activities, including the right to request information, conduct general investigations and carry out on-site inspections.

The focus is on the legal framework of the ECB's activities as a supervisory authority, including the scope of its powers and the mechanisms for their implementation. The features of the reservation on the exclusive purpose of the appointment and its role in preventing regulatory conflicts are analyzed. The practical aspects of the implementation of banking supervision are considered, including the conduct of investigations, inspections and checks of documentation of credit institutions.