Table Of ContentStudies in European Economic Law and Regulation 24
Gulnaz Ospanova
Integrating
Markets in
Banking
Services
A Legal Comparison between
the European Union (EU) and
the Eurasian Economic Union (EAEU)
Studies in European Economic Law and
Regulation
Volume 24
SeriesEditor
KaiPurnhagen,UniversityofBayreuth,Bayreuth,Germany
EditorialBoardMembers
AlbertoAlemanno,HECParis,Paris,France
MadsAndenaes,UniversityofOslo,Oslo,Norway
StefaniaBaroncelli,UniversityofBozen,Bozen,Italy
FranziskaBoehm,WestfälischeWilhelms-UniversityMünster,Münster,Germany
AnuBradford,ColumbiaLawSchool,NewYork,USA
JanDalhuisen,King’sCollegeLondon,London,UK
MichaelFaure,MaastrichtUniversity,Maastricht,TheNetherlands
Jens-UweFranck,Ludwig-Maximilians-UniversityMunich,Munich,Germany
GenevièveHelleringer,UniversityofOxford,Oxford,UK
ChristopherHodges,UniversityofOxford,Oxford,UK
LarsHornuf,UniversityofBremen,Bremen,Germany
MoritzJesse,LeidenUniversity,Leiden,TheNetherlands
MarcoLoos,UniversityofAmsterdam,Amsterdam,TheNetherlands
PetrosMavroidis,ColumbiaLawSchool,NewYork,USA
HansMicklitz,EuropeanUniversityInstitute,Florence,Italy
GiorgioMonti,EuropeanUniversityInstitute,Florence,Italy
FlorianMöslein,Philipps-UniversityofMarburg,Marburg,Germany
DennisPatterson,EuropeanUniversityInstitute,Florence,Italy
Wolf-GeorgRinge,UniversityofHamburg,Hamburg,Germany
JulesStuyck,KatholiekeUniversiteitLeuven,Leuven,Belgium
BartvanVooren,UniversityofCopenhagen,Copenhagen,Denmark
The series “Studies in European Economic Law and Regulation” is devoted to the
analysis of European Economic Law. The series’ scope covers a broad range of
topicswithineconomicslawincluding,butnotlimitedto,therelationshipbetween
EUlawandWTOlaw;freemovementunderEUlawanditsimpactonfundamental
rights; antitrust law; trade law; unfair competition law; financial market law; con-
sumer law; food law; and health law. These subjects are approached both from
doctrinalandinterdisciplinaryperspectives.
The series accepts monographs focusing on a specific topic, as well as edited
collections of articles covering a specific theme or collections of articles. All
contributionsaresubjecttorigorousdouble-blindpeer-review.
Gulnaz Ospanova
Integrating Markets
in Banking Services
A Legal Comparison between the European
Union (EU) and the Eurasian Economic Union
(EAEU)
GulnazOspanova
Nur-Sultan,Kazakhstan
InauguraldissertationzurErlangungdesGradeseinesDoktorsderRechtedurchden
FachbereichRechtswissenschaftenderPhilipps-UniversitätzuMarburg.
Vorgelegtvon:OspanovaGulnazausPavlodar/Kazakhstan.
Dekan:Prof.Dr.ConstantinWillems.
Erstreferent:Prof.Dr.FlorianMösleinLL.M.
Zweitreferent:Prof.Dr.MarcelKauLL.M.
TagdermündlichenPrüfung:1.März2021.
ISSN2214-2037 ISSN2214-2045 (electronic)
StudiesinEuropeanEconomicLawandRegulation
ISBN978-3-031-15281-8 ISBN978-3-031-15282-5 (eBook)
https://doi.org/10.1007/978-3-031-15282-5
©TheEditor(s)(ifapplicable)andTheAuthor(s),underexclusivelicensetoSpringerNatureSwitzerland
AG2022
Thisworkissubjecttocopyright.AllrightsaresolelyandexclusivelylicensedbythePublisher,whether
thewholeorpartofthematerialisconcerned,specificallytherightsoftranslation,reprinting,reuseof
illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and
transmission or information storage and retrieval, electronic adaptation, computer software, or by
similarordissimilarmethodologynowknownorhereafterdeveloped.
Theuseofgeneraldescriptivenames,registerednames,trademarks,servicemarks,etc.inthispublication
doesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexemptfromtherelevant
protectivelawsandregulationsandthereforefreeforgeneraluse.
The publisher, the authors, and the editorsare safeto assume that the adviceand informationin this
bookarebelievedtobetrueandaccurateatthedateofpublication.Neitherthepublishernortheauthorsor
theeditorsgiveawarranty,expressedorimplied,withrespecttothematerialcontainedhereinorforany
errorsoromissionsthatmayhavebeenmade.Thepublisherremainsneutralwithregardtojurisdictional
claimsinpublishedmapsandinstitutionalaffiliations.
ThisSpringerimprintispublishedbytheregisteredcompanySpringerNatureSwitzerlandAG
Theregisteredcompanyaddressis:Gewerbestrasse11,6330Cham,Switzerland
Foreword
Integration Through Regulation of Trade in East and West:
Banking as a Successful Example?
IntegrationThroughTradeRegulation:Providingpeacebyincreasingtraderelation-
shipsandharmonizingitsregulationbetweenstatesandactorsacrossborders.What
has become a success story inside of the European Union (EU) is currently chal-
lenged in other areas of the world: The Russian/Ukrainian crisis has posed the
question whether this concept, which claims universal validity, has limits. Maybe
it only functions in Western societies? Or it may be subject to certain cultural
prerequisites? Dr. Ospanova’s approach to investigate the success and failure of a
Banking Union in the EU and the Eurasian Economic Union (EAEU) is more
modest. She does not question the need, value, or limits of such an integration
endeavor per se. Via a comparative analysis, she rather adopts a hands-on assess-
ment of the bottlenecks and barriers that both trading blocs have been facing in
establishing such a Banking Union by law. Furthermore, she investigates if both
systemscanmutuallylearnfromtheirexperiencesofovercomingsuchbarriers.The
questionisinteresting,asbothUnionshavebeenbuiltondifferentprerequisites:The
EU’sBankingUnionhasbeenestablishedasaresponsetotheglobalfinancialcrisis,
embracing the framework of the post-war liberal setting of EU law. The EAEU’s
common(single)marketinbankingservicesreflectsregulatorychallengesstemming
from the post-UdSSR area. Accordingly, Dr. Ospanova formulates a rather broad
research question, which guides this book, namely whether the single market in
bankingservicesorbankingunionwouldbeareachablegoalorutopia.
Broad research questions capture a likewise broad range of topics but require
sharper application and formulation of the applied methodologies to deliver mean-
ingfulresultsinreturn.Theauthorhencerightfullyintroducescomprehensivelythe
main research questions, approaches, and methodologies at the beginning of the
book.Here,shealsocoversthequestionofcomparabilityofbothblocs;aquestion
whoseansweringisessentialgiventhedifferentsocio-economicbackgroundofboth
v
vi Foreword
Unions.Subsequently,Dr.Ospanovaillustrateswhatshecallsnon-legalbarriersto
theestablishmentofbankingunions.Thisapproachisanobleone,asitprovidesthe
subsequent legal analysis with a hands-on realistic basis as determined by the
economic,political,andgeographicfactors.InChapterThree,Dr.Ospanovaintro-
duces theEU’sapproachtoaBanking Unionandinvestigates theEUlegal frame-
workwhichenablesorinhibitsthedevelopmentofanEUBankingUnion.Rightly
so, she emphasizes on the investigation of the provisions concerning the internal
market,suchasthefreemovementprovisionsandcompetitionlaw.Butshedoesnot
stopthere.Verymuchapplaudable,sheunderstandsinternalmarketregulationasit
reallyfunctions:asamulti-levelsystemwhichnavigatesbetweenEUandMember
State levels. As a result, she investigates the provisions also according to their
harmonizationcharacterasminimumand/ormaximumharmonizationandexamines
in a comparative manner how Member States have applied their possibilities pro-
vided by the respective level of harmonization. In a similar fashion, Dr. Ospanova
subsequently investigates legal barriers in the EAEU’s agreements and assesses
them systematically based on the organization of the previous chapter. Based on
theexperiencesmadewiththeharmonizationofEUbankingregulation,sherecom-
mends the application of a concept called “gradual harmonization” to the EAEU,
whichallowstoconsiderthedifferenteconomic,social,andlegalprerequisitesofthe
EAEU’sMembers.
The book covers novel ground, as it is to my knowledge the first one to
comprehensively assess “Western” EU economics regulations in comparison to
“Eastern” EAEU economic regulation, here applying the example of a Banking
Union. The author took on this pioneering task and presented a book solidly
groundedinthepolitical,economic,andgeographicalrealities.Inapplyingcompar-
ative analysis, the book could have benefited from the application of a bit more
academicrigorhereandthere.Nonetheless,Dr.Ospanovamasteredthecomparative
taskremarkablywellasthistopicisnoveland,admittedly,notmuchlegalmaterialis
available.
Iamhappytohavetheopportunitytowelcomethisnewadditiontotheseries.
UniversityofBayreuth,Bayreuth, KaiP.Purnhagen
Germany
July2022
Acknowledgements
Writing this work was possible, first of all, due to DAAD funding. I would like to
thanktheDAADstaffinKazakhstanandGermany,whobelievedinmeandgavethe
opportunitytostudyinGermanyandgetaPh.D.degree.
Besides, of course, writing my dissertation would not have been so interesting
and exciting without the mentoring of my supervisor Prof. Dr. Florian Möslein.
Doingadoctorateabroadisnotaneasytask,butthankstomysupervisor'srespon-
sivenessandprofessionalismIwasabletosuccessfullydefendmyPh.D.thesis.
And I would like to thank my family (my husband, children, and parents), who
supportedmemorallyduringallthistime,givingmetheopportunitytositforhours
inlibraries.
Nur-Sultan,Kazakhstan GulnazOspanova
vii
Contents
1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1 ResearchQuestion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1.1 TheSingleMarket. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1.1.2 Barriers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.2 TheImportanceofResearch. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.2.1 TheRoleofBankingServices. . . . . . . . . . . . . . . . . . . . . 3
1.2.2 TheIncreasingBankingIntegrations. . . . . . . . . . . . . . . . . 3
1.3 MethodofResearch. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
1.3.1 TheComparativeAnalysis. . . . . . . . . . . . . . . . . . . . . . . . 6
1.3.2 ComparabilityofEAEUandEU. . . . . . . . . . . . . . . . . . . . 6
1.4 SourcesofResearch. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
1.5 StructureofResearch. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
2 Non-LegalBarrierstotheBankingIntegration. . . . . . . . . . . . . . . . . 11
2.1 TheGeneralGeographicData. . . . . . . . . . . . . . . . . . . . . . . . . . . 11
2.2 EconomicConditions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
2.2.1 GDPData. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
2.2.2 BankingMarketConditions. . . . . . . . . . . . . . . . . . . . . . . 14
2.3 PoliticalConditions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
3 EUApproach:EULegalBarriersfortheEstablishmentoftheSingle
MarketinBankingServices/BankingUnion. . . . . . . . . . . . . . . . . . . 21
3.1 OverviewoftheLegalBarriersandHistoryofBanking
Integration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
3.1.1 TypesoftheLegalBarriers. . . . . . . . . . . . . . . . . . . . . . . 21
3.1.2 StagesoftheBankingIntegration. . . . . . . . . . . . . . . . . . . 23
3.1.3 ChapterObservations. . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
3.2 FundamentalFreedomsandItsRestrictions. . . . . . . . . . . . . . . . . 38
3.2.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
3.2.2 ScopeandMeaningoftheFundamentalFreedoms. . . . . . . 39
ix
x Contents
3.2.3 RestrictionsofFundamentalFreedoms. . . . . . . . . . . . . . . 46
3.2.4 ChapterObservations. . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
3.3 HarmonizationoftheEUSecondaryLegalFramework
andItsLegalBarriers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
3.3.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
3.3.2 FieldsofHarmonization:PrudentialStandards. . . . . . . . . . 55
3.3.3 HarmonizationTechniques. . . . . . . . . . . . . . . . . . . . . . . . 76
3.3.4 ChapterObservations. . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
3.4 EUCompetitionLawandItsLegalBarriers. . . . . . . . . . . . . . . . . 91
3.4.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
3.4.2 TheLegalFramework. . . . . . . . . . . . . . . . . . . . . . . . . . . 92
3.4.3 ECJandCommissionPractice. . . . . . . . . . . . . . . . . . . . . 94
3.4.4 ChapterObservations. . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
3.5 Summary:AchievementsandDifficultiesoftheEUBanking
Integration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102
3.5.1 CommonMarketinBankingServices(ca.1958–2005). . . . 102
3.5.2 SingleMarketinBankingServices(ca.2006–2012). . . . .. 105
3.5.3 BankingUnion(2013–byThisDay). . . . . . . . . . . . . . . . . 105
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108
4 EAEULegalBarriersinEstablishmentoftheCommon(Single)
MarketinBankingServices. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113
4.1 OverviewofLegalBarriersandHistoryofBankingIntegration. . . 113
4.1.1 TypesoftheLegalBarriers. . . . . . . . . . . . . . . . . . . . . . . 113
4.1.2 AShortHistoryoftheBankingIntegration. . . . . . . . . . . . 116
4.1.3 ChapterObservations. . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
4.2 EAEUFundamentalFreedomsandTheirNationalRestrictions. . . 123
4.2.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
4.2.2 TheScopeandMeaningoftheFundamentalFreedoms
andItsRestrictions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
4.2.3 FundamentalFreedomsandTheirRestrictions. . . . . . . . . . 126
4.2.4 ChapterObservations. . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
4.3 HarmonizationoftheEAEUSecondaryBankingLegal
Framework. . . . . . . .. . . . . . . . . . .. . . . . . . . . .. . . . . . . . . . .. 140
4.3.1 Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140
4.3.2 ConceptsontheEstablishmentoftheSingleMarket. . . . . 140
4.3.3 NationalPrudentialRegulations. . . . . . . . . . . . . . . . . . . . 149
4.3.4 TheRoleoftheEAEUCourtintheHarmonization
Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156
4.3.5 ChapterObservations. . . . . . . . . . . . . . . . . . . . . . . . . . . . 162
4.4 Summary:AchievementsandDifficultiesoftheEAEUBanking
Integration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163
4.4.1 AchievementoftheCommon(Single)MarketinBanking
Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
4.4.2 DifficultiesoftheCommonMarketinBankingServices. . 164
References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164
