НАУЧНАЯ БИБЛИОТЕКА - РЕФЕРАТЫ - Accounting rules for regulations in banking sector

Accounting rules for regulations in banking sector

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Міністерство освіти і науки України

НТУ «ХАРКІВСЬКИЙ ПОЛІТЕХНІЧНИЙ ІНСТИТУТ»

Кафедра «Англійської мови і ділової комунікації»

Тема: «ACCOUNTING RULES FOR REGULATIONS IN BANKING

SECTOR»

Харків - 2008

As many banks and other credit institutions start offering their services globally, they should change the way their business is conducted. This is the main reason way different international rules become more and more popular. Among the others, Basel Committee on Banking Supervision and the International Accounting Standards Board (IASB) issue many important rules that are implementing into banking sector. This paper is going to present the most important Basel Committee's and the IASB's standards which affect banking activity.

As for the European Union's legislation for banking sector, it's necessary to point out the following.

As more and more countries want to join the European Union, they usually try to apply European law their own law system. That situation refers to banking system, too. There are several European Union Directives which regulate banking activity. One of the most important is the First Council Directive on the coordination of the law, regulations and administrative provisions relating to the taking up and pursuit of the business of credit institutions [1] and the Second Council Directive [2]. They consist of framework for banking institutions having their headquarters either inside or outside the European Union.

Other European directives regulate deposit-guarantee schemes [3], amount of banks' own fund [4], supervision of credit institutions on a consolidated basis [5], large exposures [6].

There are also some directives regulating accounting policies of commercial entities (including banks). These are:

1) the Fourth Council Directive [7],

2) the Seventh Council Directive [8],

3) the Eighth Council Directive [9],

4) the Fourth-Bis Directive [10].

The 1 - 3 directives refer to all commercial entities and the 4th regulates banking activity. It gives the framework for banks' financial