The Financial Services Authority: A Model of Improved Accountability?

Marianne Ojo

MPRA Paper from University Library of Munich, Germany

Abstract: Prior to the adoption of the FSA (Financial Services Authority) model, supervision of UK banks was carried out by the Bank of England. Although the Bank of England's informal involvement in bank supervision dates back to the mid nineteenth century, it was only in 1979 that it acquired formal powers to grant or refuse authorization to carry out banking business in the UK. Events such as the Secondary Banking Crisis of 1973-74 and the Banking Coordination Directive of 1977 resulted in legislative changes in the form of the Banking Act 1979. Bank failures through the following years then resulted in changes to the legislative framework. This article looks into the claim that the FSA model has improved in terms of accountability in comparison to its predecessor, the Bank of England. It considers the impact the FSA has made on the financial services sector and on certain legislation since its introduction. Through a comparison with the Bank of England, previous and present legislation, reports and other sources, an assessment can be made as to whether the FSA provides more accountability. Evidence provided here supports the conclusion that the FSA is both equipped with better accountability mechanisms and executes its functions in a more accountable way than its predecessor.

Keywords: regulators; accountability; supervision; financial; services (search for similar items in EconPapers)
JEL-codes: G28 (search for similar items in EconPapers)
Date: 2005-11, Revised 2006-08
New Economics Papers: this item is included in nep-ban, nep-cfn, nep-fin, nep-fmk and nep-his
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https://mpra.ub.uni-muenchen.de/228/1/MPRA_paper_228.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/580/1/MPRA_paper_580.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/70902/1/MPRA_paper_580.pdf revised version (application/pdf)

Related works:
Journal Article: The Financial Services Authority: A Model of Improved Accountability? (2007)
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