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The ‘Twin Peaks’ model of post-crisis banking supervision

Wook Sohn and Iegor Vyshnevskyi

Applied Economics Letters, 2017, vol. 24, issue 8, 571-574

Abstract: This article examines the effectiveness of the ‘Twin Peaks’ supervision model, in which consumer protection and prudential regulation are carried out by two separate regulatory agencies. We use a dataset from 143 countries for the period of 2004–2011 to find that the Twin Peaks model is associated with a higher quality of banking supervision in terms of the efficiency and stability of financial institutions.

Date: 2017
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DOI: 10.1080/13504851.2016.1213354

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