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Is One Watchdog Better than Three? International Experience with Integrated Financial-Sector Supervision (in English)

Author

Listed:
  • Martin Èihák

    (International Monetary Fund, Washington, D.C.)

  • Richard Podpiera

    (International Monetary Fund, Washington, D.C.)

Abstract

Over the past two decades, there has been a clear trend toward integrating the regulation and supervision of banks, nonbank financial institutions, and securities markets. This paper reviews the international experience with integrated supervision. The authors survey the theoretical arguments for and against the integrated supervisory model, and use data on compliance with international standards to assess the validity of some of these arguments. The find that (i) integration is associated with a higher quality of supervision in insurance and securities and a higher consistency of supervision across sectors, after controlling for level of development; and (ii) integrated supervision is not associated with a significant reduction in supervisory staff.

Suggested Citation

  • Martin Èihák & Richard Podpiera, 2006. "Is One Watchdog Better than Three? International Experience with Integrated Financial-Sector Supervision (in English)," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 56(3-4), pages 102-126, March.
  • Handle: RePEc:fau:fauart:v:56:y:2006:i:3-4:p:102-126
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    File URL: http://journal.fsv.cuni.cz/storage/1048_s_102_126.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    financial sector; financial-services regulation; integrated supervision; prudential supervision; supervisory agencies;
    All these keywords.

    JEL classification:

    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • K20 - Law and Economics - - Regulation and Business Law - - - General
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General

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