26.05.2026
The article “Bank Resolution, Regulatory Arbitrage, and Systemic Risk”, co-authored by Prof. Deyan Radev, PhD and Prof. Michela Altieri, PhD (Luiss University Rome), has been published open access in the Journal of International Money and Finance – a world-class, internationally recognized journal and one of the top five specialized journals globally in the field of international finance (Scopus/WoS Q1, IF 3.300).
The study analyzes how cross-country differences in bank resolution regimes between parent banks and their foreign subsidiaries affect systemic risk. It shows that resolution frameworks may influence systemic risk not only through their crisis-management function, but also through the incentives they create for regulatory arbitrage within cross-border banking groups.
The findings are particularly relevant for debates on financial stability, banking regulation, cross-border supervision, and the design of credible bank resolution regimes. The article contributes to the international literature by demonstrating that the effects of resolution regimes may differ across jurisdictions and may depend on the institutional environment in which global banking groups operate.
The publication represents an important international recognition for Bulgarian financial economics research and a rare achievement for the academic community in Bulgaria. The Journal of International Money and Finance, published by Elsevier, is among the leading academic outlets for high-quality theoretical and empirical research in international finance, international monetary economics, banking, capital flows, exchange rates, and global financial stability.
This achievement further strengthens the international research profile of the Faculty of Economics and Business Administration at Sofia University “St. Kliment Ohridski” in the areas of banking regulation, financial stability, systemic risk, international finance, and empirical finance.
The authors gratefully acknowledge financial support from Bulgarian National Science Fund’s Scientific Programme “Fundamental Studies – 2023” under grant agreement KP-06-N75-9 from December 7, 2023.
The article is available open access on ScienceDirect:
https://www.sciencedirect.com/science/article/pii/S0261560626000768
DOI: https://doi.org/10.1016/j.jimonfin.2026.103591