Supernational financial market regulation: contradictions of institutionalization

Abstract

The article considers the current trends of strengthening supranational supervision as a result of global counter-crisis reform in the context of the shrinking unregulated space of operational activity of financial intermediaries and the implementation of the principles of global governance. The author characterizes the basic approaches of financial compliance, its goals, and implementation mechanisms in the global and national financial spaces. The legislative and normative basis for the implementation of financial compliance in the European financial and institutional coordinate system is systematized and the effectiveness of supranational financial control systems is determined. Features of supranational regulatory development are revealed. The ambivalence of financial compliance in terms of its implementation in the field of client-bank interaction is shown: against the background of banking dictates about clients, financial institutions themselves have the opportunity to overcome regulatory restrictions by more active use of shadow banking, offshore operations and more. There is a vision of quasi-institutionalization, or imaginary institutionalization, which manifests itself in the formal increase of supervisory procedures, the growth of regulatory mechanisms and the strengthening of general control, and at the same time in the actual avoidance by global financial structures from undesirable financial compliance. It is concluded that global trends of strengthening supervision close to hyperinstitutionalization at the local level lead to the emergence and expansion of non-institutional spaces that are not subject to classical regulation (shadow banking), or in which rules of operation are not available for adoption and use by ordinary entities (banking compliance).