SUSTAINABILITY OF INTEGRATED FINANCIAL REGULATION AND SUPERVISION IN THE EUROPEAN UNION
SUSTAINABILITY OF INTEGRATED FINANCIAL REGULATION AND SUPERVISION IN THE EUROPEAN UNION

Summary/Abstract: Financial regulation and supervision are some of the most importantcomponents of the financial stability of any economy. The applied institutionalframework, i.e., the model and structure of the organization of financial regulation andsupervision is crucial for the overall stability as well. The first question to be addressedwhen choosing a model or the combinations of different structures encompasses to thedecision that needs to be made regarding the integrated or the non-integrated systemof financial supervision. The traditional sectoral approach for financial supervision isnot that effective enough to respond to the growing trend of financial conglomeration.Consequently, the integrated regulation is increasingly present in many countriesaround the world. During the last two decades, the development of financial regulationis moving in the direction of institutional consolidation. The purpose of this paper is topoint out the issue of choosing a model of regulation and supervision in the EUcountries in the context of the development of financial conglomerates and complexintegrated financial products. The research hypothesis argues that the applied modelof integration of financial supervision in the EU member states meets the needs of theirfinancial systems, which are increasingly determined by the complexity of the financial conglomerate.

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