Using rational choice theory to explain the effect of the post-2008 financial crisis banking regulatory framework on the banking system in the European Union

Farrington, Patricia Ann

Using rational choice theory to explain the effect of the post-2008 financial crisis banking regulatory framework on the banking system in the European Union

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Date

2023

Authors

Farrington, Patricia Ann

Publisher

University College Cork

Abstract

This research uses rational choice theory to explain the effect of the post-2008 financial crisis EU banking regulatory framework on the banking system in the EU. The objective of the post-2008 financial crisis EU banking regulatory framework is stability in the banking system. However, there are many factors that affect financial stability in the banking system, not regulation alone. Therefore, this objective is a “moving target”. For this reason, this research uses the framework of rational choice theory to assess the post-2008 financial crisis EU banking regulatory framework not solely on its ability to achieve financial stability, but also on its ability to change the rational actions of firms as a public policy instrument. This dissertation concludes that the EU banking regulatory framework is successful as a public policy instrument because the individual rational actions of banks are affected positively in favour of society and towards financial stability in the banking sector.

Description

Controlled Access

Keywords

Rational choice theory , Post-2008 financial crisis banking regulation , Banking regulation , Public policy instrument , European Union banking system , European Union banking regulation , Financial stability , Public policy

Citation

Farrington, P. 2023. Using rational choice theory to explain the effect of the post-2008 financial crisis banking regulatory framework on the banking system in the European Union. MRes Thesis, University College Cork.