Issues in the Unification of Financial Sector Supervision

Richard Abrams and Michael Taylor

No 2000/213, IMF Working Papers from International Monetary Fund

Abstract: The paper considers the generic arguments for and against the creation of a unified regulatory agency, covering each of the main types of financial institutions (banks, insurers and securities firms). The strongest arguments for unification are the enhanced oversight of financial conglomerates and the economies of scale they can potentially deliver. However, there are also a number of potentially serious disadvantages to unification, especially the risk that the change process will be mismanaged and will result in a reduction in regulatory capacity. The issue requires careful deliberation and ultimately depends on a matrix of factors which vary in importance from country to country.

Keywords: WP; banking supervision; monetary policy; securities regulation; lead regulator arrangement; market oversight function; oversight board; financial services regulation; prudential supervision; regulatory agencies; specialist regulator; board approach; consumer protection regulation; banking supervisor; capital markets regulator; routine supervision; countries banking; unified regulator; business regulator; Bank supervision; Financial sector; Bank regulation; Africa; Baltics (search for similar items in EconPapers)
Pages: 32
Date: 2000-12-01
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Citations: View citations in EconPapers (40)

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