Issues in the Unification of Financial Sector Supervision

Author/Editor:

Richard K. Abrams ; Michael W Taylor

Publication Date:

December 1, 2000

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

The paper considers the generic arguments for and against the creation of a unified regulatory agency, covering each of the main types of financial institutions (banks, insurers and securities firms). The strongest arguments for unification are the enhanced oversight of financial conglomerates and the economies of scale they can potentially deliver. However, there are also a number of potentially serious disadvantages to unification, especially the risk that the change process will be mismanaged and will result in a reduction in regulatory capacity. The issue requires careful deliberation and ultimately depends on a matrix of factors which vary in importance from country to country.

Series:

Working Paper No. 2000/213

Subject:

Bank regulation Bank supervision Banking Economic sectors Financial regulation and supervision Financial sector Financial services

English

Publication Date:

December 1, 2000

ISBN/ISSN:

9781451874938/1018-5941

Stock No:

WPIEA2132000

Pages:

32

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