Specialized Financial Court: experience of the United Kingdom and prospects for Ukraine

Abstract

The increase of loan defaults is one of the major factors which adversely influence the activity of the banking institutions and banking system in general. Moreover, it results in the financial destabilization and the deterioration of the Ukrainian investment climate. The issues of arrears in the sphere of Banking and Finance together with the inconsistency in judicial approach applied in the course of litigation related to the loan defaults have a negative impact on the Banking ability and willingness to support the development of the national economy. All the mentioned factors lead to the decline of the pace and scale of social production, the welfare of the society. Therefore, the amount of credit debt owed by banking institutions in Ukraine amounts to almost half of their total loan portfolio. This proves the necessity to find new approaches to resolve the challenging situation that exists on the financial market. The international experience of high working standard is deemed to be of a particular importance. Our study is devoted to the analysis of the relevance of establishing the separate specialized financial or credit court in Ukraine. The experience of the United Kingdom in this regard has been analysed and proposals have been made to improve the national judicial system. It has been proved that the creation of a specialized financial court may complicate the work of the judicial system and affect their efficiency. It is argued that the appropriate specialization of individual judges within the commercial jurisdiction and implementation of particular criteria and thresholds for the financial cases to be allocated to and heard by the commercial courts of Ukraine are much more efficient and effective steps.