The Costs of Supervisory Fragmentation in Europe
Financial markets in Europe become more and more integrated. The persisting fragmentation of financial supervision, however, constitutes a lasting obstacle to integration. The aim of this paper is to assess these costs of supervisory fragmentation. We find clear evidence for the existence of economies of scale in banking supervision. An increase in supervisory output by one percent causes institutional supervisory cost to rise by only some 0.5 percent. Based on these estimation results we predict institutional cost saving of around 15 percent in a plausible simulation scenario representing a cost-efficient European supervisory framework.
|Date of creation:||2005|
|Date of revision:|
|Contact details of provider:|| Postal: L 7,1; D - 68161 Mannheim|
Web page: http://www.zew.de/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gregory E. Elliehausen, 1998. "The cost of banking regulation: a review of the evidence," Staff Studies 171, Board of Governors of the Federal Reserve System (U.S.).
- Gual, Jordi, 2004. "The Integration of EU Banking Markets," CEPR Discussion Papers 4212, C.E.P.R. Discussion Papers.
- Dirk Schoenmaker & Paolo Dasgupta & Charles Goodhart, 2001.
"The Skill Profile of Central Bankers and Supervisors,"
FMG Discussion Papers
dp377, Financial Markets Group.
- Charles Goodhart & Dirk Schoenmaker & Paolo Dasgupta, 2002. "The Skill Profile of Central Bankers and Supervisors," Review of Finance, European Finance Association, vol. 6(3), pages 397-427.
- Charles Goodhart & Dirk Schoenmaker & Paolo Dasgupta, 2001. "The skill profile of central bankers and supervisors," LSE Research Online Documents on Economics 25052, London School of Economics and Political Science, LSE Library.
When requesting a correction, please mention this item's handle: RePEc:zbw:zewdip:2892. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.