Narain, Aditya and Ghosh, Saibal (2001): Bank supervisory arrangements: International evidence and Indian perspective. Published in: Economic and Political Weekly , Vol. 36, No. 37 (2001): pp. 3543-3553.
Download (158Kb) | Preview
Historically, central banks have had the dual objective of safeguarding monetary and financial stability. Increasingly, over the last two decades or so, concerns about financial stability have gained prominence, reflecting the growing number, breadth and severity of bouts of financial distress. At the same time, the role of central banks in safeguarding financial stability has been evolving. In part, this has resulted from developments in the financial system in the wake of liberalisation and innovation. More recently, some central banks have been divested of their supervisory responsibilities through changes in legislation. Structurally, as the blurring of distinction between different types of institutions (banks, securities firms and insurance companies) continues, there remains the issue of whether single or multiple supervisory authorities should be the norm and whether the central bank should be assigned any supervisory role. In this context, the present chapter seeks to understand the cross-country evidence with regard to regulation and supervision. The purpose of the Chapter is to delineate the extant arrangements of regulation and supervision and whether supervisory authority in respective countries is conducted monopolistically by the central bank or shared with other supervisory authorities. Such an analysis seeks to achieve two broad objectives: (a) whether and to what extent do different countries exhibit different supervisory arrangements and (b) on the basis of available evidence, what broad inferences can be gleaned regarding the synergies between supervision and monetary policy?
|Item Type:||MPRA Paper|
|Original Title:||Bank supervisory arrangements: International evidence and Indian perspective|
|Keywords:||supervision; central banking; mega supervisor;|
|Subjects:||L - Industrial Organization > L5 - Regulation and Industrial Policy > L51 - Economics of Regulation
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgages
|Depositing User:||Saibal Ghosh|
|Date Deposited:||22. Sep 2009 11:08|
|Last Modified:||18. Feb 2013 12:47|
Abrams, R.K., and M.W.Taylor (2000), ‘Issues in the Unification of Financial Sector Supervision’, IMF Working Paper No. 213. IMF: Washington DC.
Barth, J., D.Noelle, T.Phumiwasana and G.Yago (2002), ‘A Cross-Country Analysis of Bank Supervisory Framework and Bank Performance’, Working Paper No.2, Office of the Comptroller of Currency, USA.
Briault, C (1999), ‘The Case for a Single National Financial Services Regulator’, FSA Occasional Paper No.2, FSA, London.
Courtis, N (1999), How Countries Supervise Their Banks, Insurance and Securities Markets, Central Banking Publications: London.
Di Noia, C and G.Di Giorgio (2000), ‘Should Banking Supervsion and Monetary Policy Tasks be Given to Different Agencies?’, Working Paper No.11, Financial Institutions Centre, The Wharton School.
Goldstein, M., G.Kaminsky and C.M.Reinhart (2000), Assessing Financial Vulnerability: An Early Warning System for Emerging Markets, Institute for International Economics: Washington.
Goodhart (1995a), ‘Why Do Banks Need a Central Bank? Should Regulation and Supervision be Separated?’ Oxford Economic Papers, 22, 33-48.
Goodhart, C. (1995b), ‘Should the Functions of Monetary Policy and Banking Supervision Be Separated?’ Oxford Economic Papers, 539-560.
Goodhart, C (1998a), ‘Financial Globalisation, Derivatives, Volatility and the Challenge for the Policies of Central Banks’, in C.Goodhart (ed.) The Emerging Framework of Financial Regulation, Central Banking Publications Ltd., U.K.
Goodhart, C (1998b), ‘Some Regulatory Concerns’, in C.Goodhart (ed.) The Emerging Framework of Financial Regulation, Central Banking Publications Ltd., U.K.
Goodhart, C. (2000), 'Whither Central Banking', 11 th C.D.Deshmukh Memorial Lecture, Reserve Bank of India: Mumbai.
Goodhart, C., and D.Schoenmaker (1998), ‘Institutional Separation Between Supervisory and Monetary Agencies’, in C.Goodhart (ed.) The Emerging Framework for Financial Regulation, Central Banking Publications: London.
Goodhart, C., P.Hartmann, D.Llewellyn, L.Rjoas-Suarez and S.Weisbrod (1998), 'Financial Regulation: Why, How and Where Now?' Routledge, London.
Government of India (1991). Report of the Committee on Financial Systems (Chairman: Shri M.Narasimham), Government of India: New Delhi.
Hawkesby, C. (2000), ‘Central Banks and Supervisors: The Question of Institutional Structure and Responsibility’, Paper presented at the Workshop on Central Bank Responsibility for Financial Stability, Centre for Central Banking Studies, Bank of England, London.
Peek, J., E.Rosengren and G.M.B.Tootell (1999), 'Is Bank Supervision Central to Central Banking?' Quarterly Journal of Economics, 74, 629-653.
Reserve Bank of India (1998), Report of the Working Group on Harmonisation of the Role of DFIs and Banks (Chairman: Shri S.H.Khan), RBI: Mumbai.
Tuya, I and L.Zamolla (1994), 'Issues in Placing Banking Supervision in the Central Bank', in T.J.Balino and C.Cottarelli (eds.) Frameworks for Monetary Stability, IMF : Washington.