Should Financial Sector Regulators Be Independent?

March 8, 2004

Preview Citation

Format: Chicago

Marc G Quintyn, and Michael W Taylor. Should Financial Sector Regulators Be Independent?, (USA: International Monetary Fund, 2004) accessed December 22, 2024

Summary

In nearly every major financial crisis of the past decade-from East Asia to Russia, Turkey, and Latin America-political interference in financial sector regulation helped make a bad situation worse. Political pressures not only weakened financial regulation, but also hindered regulators and supervisors from taking action against troubled banks. This paper investigates why, to fulfill their mandate to preserve financial sector stability, financial sector regulators and supervisors need to be independent-from the financial services industry as well as from the government-as well as accountable.

Subject: Banking, Central bank autonomy, Central banks, Economic sectors, Financial crises, Financial regulation and supervision, Financial sector, Financial sector policy and analysis, Financial sector stability

Keywords: Agency independence, Authority, Budgetary autonomy, Central bank, Central bank action, Central bank autonomy, Central bank procedure, East Asia, EI, Financial sector, Financial sector stability, Government ministry, Grant independence, Independence, Independence of supervision, Independence of the central bank, Independence work, Regulator, Supervisory independence

Publication Details

Pages:

18
Volume:

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DOI:

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Issue:

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Series:

Economic Issues No. 2004/001
Stock No:

EIIEA032
ISBN:

9781589063099
ISSN:

1020-5098

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