Regulatory frameworks shaping financial institutions and markets

Financial stability isn’t usually the first thing that comes to mind when talking about legal research, but for Commercial Law postdoctoral fellow Dr Sebastian Krafzik, it’s exactly where law, governance and global development meet.

Sebastian is based in the Department of Commercial Law, working under the supervision of current Head of Department, Professor Michelle Louw. Sebastian's research looks closely at the regulatory frameworks that shape financial institutions and financial markets—an area where small shifts can have far-reaching effects. He works at the intersection of public and private law, focusing particularly on the influence of International Financial Institutions (IFIs) on economic stability across both high-income and developing countries. When asked about the core of his work, Sebastian explains that he is interested in how regulation and governance can support more resilient economies, and he notes:

It’s about understanding how institutions make decisions, and how global structures shape local outcomes. 

Especially drawn to the balance between effective oversight and the flexibility needed for financial systems to support development, Sebastian took this interest to doctoral-level research. He completed his PhD at the University of Basel, graduating insigni cum laude. His thesis examined the role of internal governance in responding to corporate scandals across Europe. Comparing Switzerland’s liberal model with the European Union’s more prescriptive approach, using France as a case study, Sebastian's dissertation analysed how boards of directors make decisions in moments of crisis and what duties board members carry in practice.

These governance questions continue to inform his current work. The move from corporate scandals to financial-market regulation might look like a step sideways, but Sebastian sees a clear through-line. His PhD sharpened his understanding of ethical and governance standards within individual institutions, while the postdoc extends this thinking to the broader market ecosystem in which those institutions operate.

Looking ahead, Sebastian hopes his research will contribute to global debates on financial inclusion, responsible regulation, and access to affordable financial services. He is particularly interested in how governance structures can support systems that are both stable and fair. 

What excites him most is the comparative element of his research. ‘Different countries tackle similar challenges in very different ways. There’s a great deal to learn from those contrasts,’ says Sebastian. For him, the work is less about exporting solutions and more about creating opportunities for shared understanding across jurisdictions.