Global trends in reforming the control system of financial and credit institutions

Abstract

The article presents an in-depth analytical study of global trends in reforming the control systems of financial and credit institutions under the conditions of profound structural transformations in international financial markets. The growing complexity of financial intermediation, the expansion of multifunctional conglomerates, and the rise of cross-border systemic risks have significantly altered the logic of financial supervision worldwide. The research outlines how regulatory frameworks have evolved in response to recurrent crises, emphasizing the strengthened role of central banks, the expansion of macroprudential mandates, and the consolidation of supervisory authorities into more coherent institutional structures. Particular attention is paid to the methodological approaches of the World Bank and the Group of Thirty, whose classification schemes make it possible to benchmark regulatory architectures by assessing the depth, accessibility, efficiency, and stability of financial systems. These dimensions provide a multidimensional analytical basis for evaluating the effectiveness of supervision in different jurisdictions. The study shows that digitalization, fintech innovation, algorithmic trading, and the emergence of non-bank financial intermediaries have created new channels of vulnerability, requiring regulators to adopt more adaptive, technologically sophisticated, and data-driven supervisory tools. The analysis highlights the growing importance of institutional independence, transparency of regulatory processes, and coordinated oversight mechanisms capable of preventing regulatory arbitrage and mitigating contagion effects. A detailed examination of the four dominant international models—institutional, functional, integrated, and Twin Peaks—demonstrates their structural differences, comparative advantages, and inherent limitations. While traditional sector-based models reflect the historical evolution of national financial systems, they increasingly struggle to respond to blurred market boundaries and multifunctional financial firms. In contrast, integrated and Twin Peaks models offer enhanced coherence of supervisory mandates, improved risk coordination, and more effective protection of consumer rights, particularly in highly digitalized and innovation-driven environments. The findings reveal a clear global trend toward strengthening macroprudential supervision, improving crisis-management mechanisms, harmonizing regulatory standards, and enhancing cooperation between national and supranational supervisory bodies. The article argues that the effectiveness of modern regulatory systems depends not only on institutional architecture but also on the capacity of supervisory authorities to adapt to technological change, manage emerging risks, and maintain a stable balance between prudential and behavioral oversight. The results of the study form a theoretical and practical basis for improving national systems of financial regulation and for developing strategic policy measures aimed at strengthening financial stability, increasing regulatory transparency, and enhancing the resilience of financial-credit institutions amid growing global uncertainty.