REGULATIONS CONVERGENCE FOR BANKS ESTABLISHMENT OF JAPAN, UK AND GERMANY IN GLOBAL BANKING

Abstract: Establishment of banks is regulated by the legal and regulatory requirements. Banks regulation represents a set of rules and regulations that banks must meet at entering the banking business. National regulatory frameworks are created according to the banking business model that is being implemented in a particular country, so they different from each other. The regulatory framework issue for the banks establishment in the era of globalization concerns its global application. The purpose of the paper is to examine how the convergence of regulations in the field of establishment of banks affects the development and efficiency of banking. In this paper, we study the specific regulatory requirements for the banks establishment in Japan, Great Britain and Germany and isolating other regulatory requirements at the same time. For the purpose, the methods of quantitative and qualitative analysis are used. The aim is to explore advantages and disadvantages of certain regulations, their limitations and identify aspects where these policies converge in the global banking industry. The result of these study confirm the assumption about the development of the financial infrastructure and the efficiency of banking with the convergence of the regulation, which represents the best regulatory practices. The further convergence guidelines are focused on the acceptance of the universal banking model and solving minimum capital requirements for foreign banks branches.

Keywords: the establishment of banks, regulation, banking business models, convergence