Financial Market Supervision in the European Union and Its Impact on Lithuania
Keywords: financial market supervisory authorities, bank of the Republic of Lithuania, financial market supervision approaches, public administration
AbstractFinancial sector supervisory bodies are organized in different forms in different countries of the European Union. These “models” range from independent stand-alone supervisory authorities to consolidated (centralized) supervisors responsible for supervising the entire financial sector, including banks, insurance companies and securities firms. The aim of this article is to analyse the new financial market supervision approach in the Republic of Lithuania. Since 1 January 2012 the supervision of the Lithuanian financial market has been centralized. Therefore, the Central Bank of the Republic of Lithuania is the sole supervisory authority that supervises the Lithuanian financial market. The new financial market supervision approach has led to the further amendments. Under the Law on Bank of the Republic of Lithuania (Central Bank); since 1 January 2012 the supervision of the financial market funding partly derives from the fees imposed on regulated entities. The operational independence of the supervisory authority leads to more transparent and professional financial market supervision and unburdens public administration costs. However, as it is mentioned in the article, the global financial crisis has led to the disputes that the supervision of the national financial market as well as the financial market of the European Union should develop a harmonized core set of supervision standards that can be applied throughout the European Union. Therefore, by the de Larosiere report as a basis, the European Commission is attempting to establish a new European financial supervision system. Consequently, the new macro-economic supervision approach will impact the further developments in the Lithuania’s financial market supervision.
Implementation of Economic and Social Policy