Work detail

Regulatory Sandbox - International Experience

Author: Mgr. Anastasija Černecka
Year: 2021 - summer
Leaders: Mgr. Magda Pečená Ph.D.
Work type: Economic Theory
Language: English
Pages: 79
Awards and prizes:
Abstract: The regulatory sandbox is a special regime provided by regulators and supervisory authorities to market participants for testing their innovative business
models, while temporarily reducing certain regulatory requirements. It is a very
recent topic and so far its impact has not been sufficiently empirically tested.
However, the empirical evidence may be crucial for the authorities hesitating
to adopt their regulatory sandboxes. The main contribution of this thesis is the
empirical testing of the effect of the sandbox on the investments into FinTech
in three European countries, using the Synthetic control method. The yearly
aggregate amounts and numbers of FinTech investments were selected as measurable indices of the FinTech sector development. The most significant results
show that in the United Kingdom, the aggregate yearly amounts invested into
FinTech grew considerably compared to the values of the synthetic control unit,
after the sandbox introduction. For the other two tested countries (the Netherlands, Denmark), no significant outcomes were observed due to insufficiency of
data. In the theoretical part, this thesis gathers information about the existing
regulatory sandboxes in European countries. Also, the author seeks to outline
the main legal issues related to the regulatory sandbox establishment.




Patria Finance
Česká Spořitelna