Transformation of financial supervision models in CEE countries

Abstract

Due to the processes of glogalization, integration of financial markets, consolidation and internationalisation, many factors emerge promoting the transformations of financial supervision models. During the recent decades various processes of globalisation, integration of financial markets, consolidation and internationalisation not only enforced transformations of structure of credit institutions, insurance companies, intermediators of securities markets and other financial institutions, but also provoked challenges for the financial supervision. Traditional financial supervision forms, due to the increasing integration of financial markets, free movement of capital and services, emergence of new financial derivative instruments, couldn‘t maintain core functions and had to transform to the new integrated financial regulation models, finding new methods for identifying and managing risks in financial institutions and financial markets. As the financial crisis revealed the weaknesses of the financial supervisions, more attention is paid to the stability of the whole financial sector. The changes in the financial sector not only force to adjust to the new conditions, but also to find new financial regulations methods for ensuring efficient and stable functioning of the financial intermediation system.[...]