BANKING SYSTEM OF THE EUROPEAN UNION

The banking system is an integral element in the functioning of the country's economy. The reliability of the banking system depends on the reliability of the economy, which, in turn, depends on the functioning of business, revenues and investments, including foreign economic ones. Thus, when choosing a country for the placement of funds, a person, first of all, chooses reliability.

Reliability of the bank, reliability of compliance, as well as political stability. In addition, the level of reliability of the banking system is determined by the volume of assets, the period of stay on the market of banking services, the number of involved clients and the scope of the provision of banking services.

Most people believe that the European Union has a reliable banking system and you can invest your savings in it without fear, but you need to consider which banking structures you can contact and what you can count on in the future.

In addition, we draw your attention to the fact that banks in the European Union, as well as on the territory of Ukraine, act as subjects of primary financial monitoring.

And this means that if you wish to place a certain amount of money, you need to be ready to confirm the origin of the corresponding amount.

Also, some clients consider opening a bank account remotely. That is, without contacting the bank in person and without carrying out all the necessary identification procedures. We immediately note that this is possible in exceptional cases, which must be considered individually. In most cases, only account opening for legal entities can be considered without personal presence.

Advantages of the banking system of the European Union

If we analyze the EU banking system in terms of advantages over national banks, then the most significant advantage is stability of work. Of course, the advantages include the system of instant payments, which allows you to make calculations in real time, low interest rates on loans and the stability of receiving interest on deposits.

Disadvantages of the banking system of the European Union

Along with the advantages of the EU banking system, one can also find its disadvantages, which consist in the fact that citizens who are legally present in the territory of the EU countries and have a stable income that will allow them to pay the loan on time have the right to lend in banks. For citizens of EU countries, there are more opportunities for service than for foreigners.

In addition, financial monitoring in the European Union is much more demanding and meticulous than the financial monitoring that Ukrainians are used to. For example, in the event of the appearance of any amount of funds that can be regarded as suspicious, the bank immediately blocks the account, transfers the information to the relevant state financial monitoring structures, which in turn immediately inform the local police about suspicious transactions. Next, you need to solve the issue comprehensively with the structures and individually with the client.

So, summing up the above, it is worth noting that when choosing one or another bank in the EU countries, it is important to familiarize yourself with the local legislation of one or another country, the requirements of financial monitoring and the bank to customers who wish to apply for the relevant services.