This book deals with banking integrations, which are now becoming crucial not only because of the increased number of economic integrations, but also in view of the qualitative improvement of such banking integrations. It compares the European Union (EU), as the most successful union, which was able to move from a common financial market to the prime example of banking integration; the Banking Union; and the Eurasian Economic Union (EAEU) as a relatively young one but with several of the prerequisites for becoming an influential union, and which was established by five countries – the Russian Federation, Kazakhstan, Belarus, Armenia, and the Kyrgyz Republic – in 2015.
The key research question is whether the single market in banking services or a banking union is an achievable goal or merely a utopia. In this regard, the book reveals the bottlenecks and obstacles that the EU and EAEU policymakers faced during the difficult process of establishing a single market and banking union. However, along with the problems of banking integration, it identifies many peculiarities of the harmonization of banking legislation among the EU Member States. Recognizing and acknowledging these peculiarities can be very beneficial for young unions and help to guide their integration processes. In particular, the book concludes that evolutionary (not revolutionary) harmonization is required in order for the EAEU to become a full-fledged union.
Author(s): Gulnaz Ospanova
Series: EAEU) (Studies in European Economic Law and Regulation, 24
Publisher: Springer
Year: 2022
Language: English
Pages: 197
City: Cham
Foreword
Integration Through Regulation of Trade in East and West: Banking as a Successful Example?
Acknowledgements
Contents
Abbreviations
Chapter 1: Introduction
1.1 Research Question
1.1.1 The Single Market
1.1.2 Barriers
1.2 The Importance of Research
1.2.1 The Role of Banking Services
1.2.2 The Increasing Banking Integrations
1.2.2.1 The EAEU Common (Single) Market in Banking Services
1.2.2.2 The EU Banking Union
1.3 Method of Research
1.3.1 The Comparative Analysis
1.3.2 Comparability of EAEU and EU
1.4 Sources of Research
1.5 Structure of Research
References
Chapter 2: Non-Legal Barriers to the Banking Integration
2.1 The General Geographic Data
2.2 Economic Conditions
2.2.1 GDP Data
2.2.2 Banking Market Conditions
2.3 Political Conditions
References
Chapter 3: EU Approach: EU Legal Barriers for the Establishment of the Single Market in Banking Services/Banking Union
3.1 Overview of the Legal Barriers and History of Banking Integration
3.1.1 Types of the Legal Barriers
3.1.2 Stages of the Banking Integration
3.1.2.1 The Common Market in Banking Services and Its Legal Framework
3.1.2.2 Single Market in Banking Services and Its Legal Framework
3.1.2.3 Banking Union and Its Legal Framework
3.1.3 Chapter Observations
3.2 Fundamental Freedoms and Its Restrictions
3.2.1 Overview
3.2.2 Scope and Meaning of the Fundamental Freedoms
3.2.2.1 Freedom of Establishment (Article 49 TFEU)
3.2.2.2 Freedom of Free Movement of Services (Article 56 TFEU)
3.2.2.3 Freedom of Free Movement of Capital (Article 63 TFEU)
3.2.3 Restrictions of Fundamental Freedoms
3.2.3.1 `Restriction´ Concept and the `General Good´ Clause in Accordance with the Legal Framework
`Restriction´ Concept
The `General Good´ Clause
3.2.3.2 `Restriction´ Concept and `General Good´ Clause in Accordance with the ECJ Practice
`Restriction´ Concept
Application of the `General Good´ Clause
The `General Good´ Motives
Absence of Harmonization
No Discrimination on Grounds of Nationality
Non-Duplication of Home Member State´s Rules
An Objective Necessity
3.2.4 Chapter Observations
3.3 Harmonization of the EU Secondary Legal Framework and Its Legal Barriers
3.3.1 Overview
3.3.2 Fields of Harmonization: Prudential Standards
3.3.2.1 TFEU About Harmonization of Banking Laws
3.3.2.2 Understanding of Prudential Standards
3.3.2.3 Short Description of the Secondary Banking Legal Framework
3.3.2.4 Particularities of Harmonization of the Secondary Banking Legal Framework
Principles of Harmonization of the National Legislations
The Legal Tools of Harmonization
Organizational Tools of Harmonization
Harmonization Fields
Harmonization of Definitions
Elaboration of a Unified List of Activities
Harmonization of the Procedure for Issuing of the Banking License
Consistency in Harmonization of the National Legislations
3.3.3 Harmonization Techniques
3.3.3.1 Minimum Harmonization Method
The Scope of Application of the Minimum Harmonization Method
The Gold-Plating Practice in Some EU Member States
The United Kingdom
Belgium
The Netherlands
The Czech Republic
Germany
3.3.3.2 Maximum Harmonization and Options, Discretions
The Scope of Application of Maximum Harmonization Method
Particularities of `Maximum Harmonization´ Method
No Possibility to Introduce More Strict Prudential Requirements
Options and Discretions
History of Options and Discretions
Positive and Negative Impact of Options and Discretions
Future Plans
3.3.4 Chapter Observations
3.4 EU Competition Law and Its Legal Barriers
3.4.1 Overview
3.4.2 The Legal Framework
3.4.3 ECJ and Commission Practice
3.4.3.1 Violations: Agreements, Concerted Practice and Recommendations
Agreements
Concerted Practice
Recommendations
3.4.3.2 Exemptions
The Localized Banking Services
Performance of Banking Activities on Collective Basis
Agreements Between Credit Institutions with Benefit to Consumer
Italian Case
Visa Payment System
Agreements Between Banks, Justified by Reasons Other Than the Consumer Protection
3.4.4 Chapter Observations
3.5 Summary: Achievements and Difficulties of the EU Banking Integration
3.5.1 Common Market in Banking Services (ca.1958-2005)
3.5.1.1 Achievements of the Common Market in Banking Services
3.5.1.2 Difficulties of the Common Market in Banking Services
3.5.2 Single Market in Banking Services (ca. 2006-2012)
3.5.2.1 Achievements of the Single Market in Banking Services
3.5.2.2 Difficulties of the Single Market in Banking Services
3.5.3 Banking Union (2013-by This Day)
3.5.3.1 Achievements of the Banking Union
3.5.3.2 Difficulties of the Banking Union
References
Chapter 4: EAEU Legal Barriers in Establishment of the Common (Single) Market in Banking Services
4.1 Overview of Legal Barriers and History of Banking Integration
4.1.1 Types of the Legal Barriers
4.1.2 A Short History of the Banking Integration
4.1.2.1 Single Economic Space and Its Legal Framework
Agreement on the Coordinated Principles of Monetary Policy (Agreement on Monetary Policy)
Agreement on Conditions for the Free Movement of Capital (Agreement on Capital)
Agreement on Trade in Services and Investments
4.1.2.2 The EAEU and Its Legal Framework
The EAEU Treaty
Other EAEU Agreements
The Common Financial Market
4.1.3 Chapter Observations
4.2 EAEU Fundamental Freedoms and Their National Restrictions
4.2.1 Overview
4.2.2 The Scope and Meaning of the Fundamental Freedoms and Its Restrictions
4.2.2.1 `Restriction´ Concept
4.2.2.2 Similarity of EAEU and EU Fundamental Freedoms
4.2.3 Fundamental Freedoms and Their Restrictions
4.2.3.1 Freedom of Free Movement of Services and Its Restrictions
4.2.3.2 Freedom of Free Movement of Capital and Its Restrictions
4.2.3.3 Freedom of Establishment and Its Restrictions
The Russian Federation
Armenia
Belarus
Kazakhstan
The Kyrgyz Republic
Summary on Restrictions
4.2.3.4 Justification of National Restrictions with Public Order and `Prudential Carve-Out´
Public Order
The Prudential Carve-Out
4.2.4 Chapter Observations
4.3 Harmonization of the EAEU Secondary Banking Legal Framework
4.3.1 Overview
4.3.2 Concepts on the Establishment of the Single Market
4.3.2.1 Concept on the Establishment of the Single Market in General Services
4.3.2.2 Concept on the Establishment of the Common (Single) Financial Market
4.3.3 National Prudential Regulations
4.3.3.1 Armenia
4.3.3.2 Belarus
4.3.3.3 Kazakhstan
4.3.3.4 Kyrgyz Republic
4.3.3.5 The Russian Federation
4.3.4 The Role of the EAEU Court in the Harmonization Process
4.3.4.1 Legislative Regulation of the EAEU Court´s Activities
4.3.4.2 The EAEU Court Practice
Dissenting Opinion of Judge Kolos D
Dissenting Opinion of Judge Chaika K
4.3.5 Chapter Observations
4.4 Summary: Achievements and Difficulties of the EAEU Banking Integration
4.4.1 Achievement of the Common (Single) Market in Banking Services
4.4.2 Difficulties of the Common Market in Banking Services
References
Chapter 5: Lessons to be Learned by the EAEU
5.1 Recommendations to the EAEU
5.1.1 Legal Barriers
5.1.2 Recommendations for Method of Harmonization
5.1.3 Recommendations for Harmonization of the National Legislations of EAEU Member States
5.2 Recommendations to the EAEU Member States
References
