Working paper
FinTech Regulation Subject to Human Psychology
Математические методы анализа решений в экономике, бизнесе и политике. WP7. Издательский дом ВШЭ, 2018. No. 1.
Ten years after the global crisis of 2007–2009 the financial regulation has being enhanced with the pace of world stock markets growth. Latter ones have hit their historical maximum values being two to three fold higher than on the eve of the crisis. Such prudential tightening incentivizes using financial technologies to create new banking products and optimize regulatory burden. Same time it inflates the stock market bubble leading to greater fragility and increases the probability of another global crisis. Current research shows how human psychology has to be accounted for. This is relevant both for humans managing financial institutions as objects of regulation and humans benefiting from regulation when consuming financial services. It is shown that unconventional policy measure of abandoning both regulation and state deposit insurance enables to enhance financial stability. It implies more conservative behaviour and diminishes risk-appetite for both financiers and their clients.
Research target:
Economics and Management (including Public Administration)
Priority areas:
economics
Language:
English
Full text (PDF, 685 Kb)
Publication based on the results of:
Modern context of decision making and data analysis methods: human factor, uncertainty, risks, network models, big data(2018)