| Abstract [eng] |
Lately financial supervision was at the forefront of the agenda of European Union. Financial market supervision in the European Union has a complex legal and institutional framework and its implementation is a complex process involving various aspects of economics and public administration. Historically financial supervision was an object of European Union members states. Prior to the financial crisis member states organized financial supervision on their own, mostly according to tendencies of the financial markets. The biggest impulse to financial market supervision was the financial crisis of 2008, after which the most important elements of European Union financial supervision system were created. The implementation of these elements became the main objective of Lithuanias financial supervision system. Because of this the problem of the research is – How to ensure effective implementation of European Union financial supervision system in Lithuania? The aim of the research is to analyze the implementation of European Union financial supervision system. The aim is achieved by three objectives: 1) Define the main theoretical aspects of financial market supervision policy implementation; 2) Analyze European Union financial market supervision system legal and institutional mechanisms; 3) Identify European Union financial supervision system implementation problems in Lithuania. The object of the research is European Union financial supervision system. During the theoretical analysis it came to light that benefits public policy instruments are defined not only by its contents but its implementation specifics. Main three preconditions of financial market supervision were identified – consumer protection, financial market stability and monopoly formation interruption. By analyzing theoretical aspects of financial market supervision implementation it was revealed that financial market supervision can be separated into two elements – microprudential and macroprudential supervision and both shortcomings of these elements were revealed. Macroprudential supervision was not given needed priority, and sectoral supervision model which dominated microprudential supervision was outdated. Financial crisis of 2008 revealed the shortcomings of European Union financial supervision system of that time and need for more integration. New legal and institutional mechanisms were created in the European Union. European system of financial supervision (ESFS) addresses both macroprudential and microprudential supervision policy but it was revealed that they need more and broader legally binding instruments. Banking Union is an important but complex set of European Union financial supervision legal instruments which delegates a number of sovereign financial supervision rights from national financial supervision to the European Central Bank, which obtained a broad financial market supervision mandate. Analyzing the qualitative research and documents analysis it can be noted that implementation of European Union financial supervision system in Lithuania has problems that can be clearly defined and can be easily revealed by performing a research of even a small scale. Problems noted were the limited jurisdiction of European Union financial supervision system, financial and administration burdens associated with the system and lack of information. These problems are known, actual and longstanding. |
