 Principles of Good Financial SupervisionDavid Mayes, Liisa Halme and Aarno Liuksila Chapter 4 in Improving Banking Supervision, 2001, pp 65-90 from Palgrave Macmillan Abstract: Abstract The fundamental premise of this chapter is that the legal and supervisory framework of the financial industry matters as a precondition for stability. An effective and workable regulatory and supervisory regime is forward-looking and anticipatory, so that those responsible for financial system stability ensure that the regime is adapted to forthcoming, or at least current, changes in the surrounding economy and can react flexibly. These aspects have often been given too little weight — if not forgotten entirely — during the regime shifts that preceded banking crises in many countries. As Llewellyn (1999) points out, when planning regime shifts, the authorities need to ensure that they have a supervisory system in place that can cope with the inevitable mistakes that financial institutions will make as they learn how to operate in the new regime.1 The framework required for the transition is likely to be different both from that required for the old regime and from that for the new. Keywords: Corporate Governance; Financial System; Moral Hazard; Audit Committee; Legal Rule (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-28819-5_4 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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