The Accountability of Financial Sector Supervisors : Principles and Practice

Author/Editor:

Michael W Taylor ; Marc G Quintyn ; Eva H. G. Hüpkes

Publication Date:

March 1, 2005

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

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:

Policymakers' uneasiness about granting independence to financial sector regulators stems to a large extent from the lack of familiarity with, and elusiveness of, the concept of accountability. This paper gives operational content to accountability and argues that it is possible to do so in a way that encourages and supports agency independence. The paper first elaborates on the role and purposes of accountability. Second, it shows that the unique features of financial sector supervision point to a more complex system of accountability arrangements than, for instance, the conduct of monetary policy. Finally, the paper discusses specific arrangements that can best secure the objectives of accountability and, thus, independence. Our findings have a wider application than financial sector supervision.

Series:

Working Paper No. 05/51

Subject:

English

Publication Date:

March 1, 2005

ISBN/ISSN:

9781451860702/1018-5941

Stock No:

WPIEA2005051

Format:

Paper

Pages:

51

Please address any questions about this title to publications@imf.org