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3 Technium Soc. Sci. J. 1 (2020)

handle is hein.journals/techssj3 and id is 1 raw text is: 

                                                           Technium  Social Sciences Journal
                                                                 Vol. 3, 1-10, February 2020
                                                                           ISSN: 2668-7798
           SOCIAL SCIENCES JOURNAL                                www.techniumscience.com








Swiss Direct Democracy and Regulation of Banking Sector


              Prof. Dr. mult. Miroslaw Matyja Dr. h.c.
              Logos  International University / USA
              Polish University Abroad in London
              Selinus University in Bologna/Italy
              Indian Management  School and Research Centre in Mumbai/India

              m.natyijaksunise  ch


              Abstract. The aim of this article is to analyze the influence of the Swiss political system on the
              country's banking sector. Is the Swiss direct democracy, which has no counterpart in any other
              country, an advantageous factor for the development and functioning of the banking sector? In
              order to fully answer this question, the author has analyzed the results of direct voting on the
              Swiss bank regulations. He has concluded that there is an important and direct influence of the
              political system on the functioning of the financial sector. The analysis of the results of various
              federal referenda confins the thesis that the Swiss direct democracy (with its instruments of
              popular initiative and referendum) has a decisive influence on the regulatory process in the
              country's banking sector.


              Keywords. Switzerland, Banking Sector, Direct Democracy, Regulation, Finance


       Introduction
       The   Swiss political system  differs significantly from other  European  democratic
systems.  Due   to constitutional legislation and  specific  political instruments, such  as
referendum  and popular  initiative, the Swiss are really the sovereign who has the last say in
every  important issue from  the communal to the federal level.   This  collective system of
power,  characterized by a considerable influence  of various interest groups, political elites
and citizens, has no counterpart in any other country. For this reason, the Swiss federalism,
with  its complexity and  distinctiveness, cannot be directly implemented  into the political
system of a different country without a proper analysis of its origins and functioning.
       A  detailed study of the  Swiss banking  sector is possible only after examining  the
uniqueness  of the country's political system, for it determines how the industry operates. It is
equally important to define and systematize the methods and forms of regulation.
       Can  thus a proper  banking regulation be  established in a political system based on
direct democracy?   Do  popular  initiative and referendum,  as  instruments  of democracy,
hamper  the state's policies of regulation?
       It is generally known that there is a conflict of interests between democracy and the
rule of law, and  between  the principle of democratic  majority and  the principle of profit
maximalization  that is characteristic for banks. This conflict can be managed, but it cannot be


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