Public Interest in Financial System Law

Abstract

This paper deals with issues related to public interest and financial system. He brings several general arguments regarding the actual legal regulation of financial system, asks about reasons for such detailed regulation and discovers the public interest in financial system law. In addition, the author defines the term “financial system” and “financial stability” in the paper because there can be found a lack of their broadly accepted definition in recent legal scientific literature, therefore the author offers his own definition of these terms. In the middle part of the paper, there can be found several important reasons in behalf and against the actual high level of legal regulation of the financial system. In concrete, namely a high level of risk, a high profitability of undertaking business in financial services, an asymmetry of information in the relationship between a financial institution and its client, a protection of clients, restriction of the competition of financial institutions or costs of regulation requirements fulfillment are mentioned and analyzed.