European policy makers are considering a host of proposals to eliminate implicit government guarantees, including a new resolution regime, turning some liabilities into bail-in debt that will automatically take losses, depositor-preference regimes that would subordinate unsecured bondholders, and U.K.-style plans to ring-fence certain activities.
There is thus never a situation in which an authoritarian regime would outperform a democratic one or a situation in which citizens of a given country would have a rational preference for a less democratic government.