The Modern State of the Institute of Banking Secrecy in the Conditions of Digitization of Banking Services

Abstract

This article is devoted to the studying of the current state of the institution of banking secrecy as a necessary element of banking services that can protect the information rights of customers of credit institutions. In the context of the rapid digitalization of property turnover, which has also touched the sphere of banking services, there is a growing need to form an adequate legal regulation of the institution of banking secrecy, in view of the need to level out the conflict of interests in the client-bank-state system. The purpose of the work is to analyze the regulatory framework that forms the basis of information security for clients of credit institutions when they conclude banking transactions. The methodological basis of the study was a complex of methods of scientific knowledge, among which the dialectical method takes the leading place. At the same time, the author used general scientific (dialectics, analysis and synthesis, abstraction and concretization) and particular scientific (comparative legal, technical and legal) methods. During the study, the author determined that the institution of banking secrecy is complex. In its design involved as a means of private law, and facilities of public law. Modern legislation establishing a mode of bank secrecy, inherent competition of norms. The main discrepancies appear themselves between the norms of civil and special banking legislation. The legislator shouldn’t extend the regime of bank secrecy to all operations conducted by a bank in determining the composition of confidential information. In our opinion, only information on transactions aimed at the execution of bank account agreements and bank deposits is subject to protection. There is no protection of financial information which was obtained as a result of entering into bank account agreements and bank deposits in precious metals. Protecting customer information in banking secrecy loses its meaning, because modern legislation has introduced more effective and more efficient mechanisms for protecting customer information. This refers to the modes of personal data and insider information. The study made it possible to formulate the following legislative proposals: «The bank is obliged to guarantee the secrecy of information about a bank account of any kind, about a bank deposit, including in precious metals; information about performed banking operations on the account». Methodology: The methodological basis of the study was a complex of methods of scientific knowledge, among which the dialectical method takes the leading place; at the same time, the author used general scientific (dialectics, analysis and synthesis, abstraction and concretization) and particular scientific (comparative legal, technical and legal) methods.