Working paper of Dr. Maria-Eleni K. Agoraki and Christos Triantopoulos
Abstract
The 2008 financial crisis created a field of an interesting academic debate considering the pre-crisis financial regulatory and supervisory framework. Central and Eastern Europe’s emerging banking systems consist a unique political- economic case to investigate hypothesis and causality relations between structural factors considering the establishment and the development of their financial regulatory frameworks. The level of democracy and the degree of the political regime’s – substantial – commitment to public prosperity differs significantly among the European countries. This difference seems to affect, firstly, the level of quality and good governance of the financial regulatory and supervisory institutions, and, secondly, the ability of the regulatory framework to correspond to the three major regulatory goals. So, this paper attempts to investigate the linkages and relations among democracy, financial regulation and banking competition.
