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Banking regulation towards advisory: the “culture compliance” of banks and supervisory authorities


  • Carretta, Alessandro
  • Farina, Vincenzo
  • Schwizer, Paola


The financial regulation is moreover based on self-regulation and the coordination of external and internal supervision. This determines an evolution in the role played by the supervisory authorities, and in the manner in which they interact - with and almost advisory function - with the governance bodies of the banks, such as the board of directors, top management and external and internal auditors. The capacity to adequately perform such advisory functions entails the existence of consistent objectives, consistent knowledge and consistent cultural models. Our paper points at cultural gaps as a possible stumbling block in the efficient exchange of information and the sharing of problems and goals among regulators and the industry. We develop a cultural survey based on the application of a text-analysis model to a corpus of reference texts produced by two samples, drawn from among the supervisory bodies and the supervised entities. The empirical survey results reveal numerous fields of cultural differentiation, alongside several important areas in which the orientations of the two parties tend to overlap.

Suggested Citation

  • Carretta, Alessandro & Farina, Vincenzo & Schwizer, Paola, 2005. "Banking regulation towards advisory: the “culture compliance” of banks and supervisory authorities," MPRA Paper 8302, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:8302

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    References listed on IDEAS

    1. Barth, James R.*Caprio,Gerard*Levine, Ross, 2001. "The regulation and supervision of banks around the world - a new database," Policy Research Working Paper Series 2588, The World Bank.
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    Cited by:

    1. Alessandro Carretta & Vincenzo Farina & Paola Schwizer, 2010. "The “day after” Basel 2: do regulators comply with banking culture?," Journal of Financial Regulation and Compliance, Emerald Group Publishing, vol. 18(4), pages 316-332, November.
    2. Carretta, Alessandro & Farina, Vincenzo & Schwizer, Paola, 2007. "M&A and post merger integration in banking industry: the missing link of corporate culture," MPRA Paper 8300, University Library of Munich, Germany.
    3. Carretta, Alessandro & Farina, Vincenzo & Fiordelisi, Franco & Schwizer, Paola, 2006. "Corporate culture and shareholder value in banking industry," MPRA Paper 8304, University Library of Munich, Germany.
    4. Carretta, Alessandro & Farina, Vincenzo & Schwizer, Paola, 2006. "Coordination & cooperation in financial regulation: Do regulators comply with banking culture?," MPRA Paper 8301, University Library of Munich, Germany.

    More about this item


    Financial Regulation; Banking Culture; Cultural Compliance;

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • G20 - Financial Economics - - Financial Institutions and Services - - - General


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