Page 113 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE

However no support was found by legal initiative to provide the National Bank

of Ukraine's with permission to use its own macroeconomic estimates and forecasts for
decision-making in monetary policy, including the development of the basic principles

for monetary policy. According to the new wording of the corresponding law, in the

development of the Basic Principles on the monetary policy by the National Bank of
Ukraine macroeconomic indicators calculated the Cabinet of Ministers of Ukraine are

used.
3. Stability of the banking system.

Today there is no sole authority in Ukraine to development a common
policy for the financial sector. According to Article 21 of the Law of Ukraine

"On Financial Services and State Regulation of Financial Services", state

regulation of financial services is conducted: for the market of banking services
– by the National Bank of Ukraine, for the markets of securities and derivative

instruments - National Commission on Securities and Stock Market, relatively

to other markets of financial services - by the National Commissions, exercising
the state regulation in the field of Financial Services markets (Official Bulletin

of Ukraine, 2001, N 32: 1457).
Most acceptable case for Ukraine would be the introduction of the

two separate regulatory and supervisory authorities - the Financial Services
Authority under the central bank and financial market regulator.

Abovementioned regulation model is also known as the «twin peaks» model

and is widely used in the international practice for its distinctive advantages
over other models:

- responsibilities for policy development between are assigned the
regulators of the financial sector;

- the risks of the introduction of new approaches into regulation and
supervision are reduced;

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