Financial Supervisory Independence and Accountability–Exploring the Determinants

Author/Editor:

Donato Masciandaro ; Marc G Quintyn ; Michael W Taylor

Publication Date:

June 1, 2008

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:

We analyze recent trends in, and determinants of, financial supervisory governance. We first calculate levels of supervisory independence and accountability in 55 countries. The econometric analysis of the determinants indicates that the quality of public sector governance plays a decisive role in establishing accountability arrangements, more than independence arrangements. It also shows that decisions regarding levels of independence and accountability are not well-connected. The results also show that the likelihood of establishing adequate governance arrangements are higher when the supervisor is located outside the central bank.

Series:

Working Paper No. 08/147

Subject:

English

Publication Date:

June 1, 2008

ISBN/ISSN:

9781451870053/1018-5941

Stock No:

WPIEA2008147

Format:

Paper

Pages:

34

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