Good Supervision: Lessons from the Field

IMF Working Papers, September 6, 2023

Source details

Canonical URL

Good Supervision: Lessons from the Field

Other formats

• Markdown version
• Structured JSON version
• Bundle manifest

Bibliographic details

• Authors: Tobias Adrian, Marina Moretti, Ana Carvalho, Hee Kyong Chon, Katharine Seal, Fabiana Melo, Jay Surti
• Published: September 6, 2023
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9798400253782.001

Summary

• Keeping banks safe and sound hinges on good supervision.
• The bank failures of March 2023 precipitated questions about the effectiveness of supervision.
• This paper reflects on lessons learned from this banking turmoil and reviews global progress in delivering effective supervision over the past ten years.
• It finds progress in areas like risk monitoring, stress testing, and business model analysis.
• Progress has also been hampered by deficiencies in supervisory approaches, techniques, tools, and (use of) corrective and sanctioning powers, as well as by unclear mandates, inadequate powers, and lack of independence and resources.
• Overcoming these deficiencies requires supervisors to improve their own performance and other policy makers to contribute to ensuring vigilant, independent and accountable supervision.

Key findings

• Progress observed in:
  • risk monitoring
  • stress testing
  • business model analysis
• Persisting deficiencies include:
  • supervisory approaches, techniques, and tools
  • use of corrective and sanctioning powers
  • unclear mandates and inadequate powers
  • lack of independence and resources

Policy implications and recommendations

• Supervisors need to improve their own performance.
• Other policy makers should contribute to ensuring vigilant, independent, and accountable supervision.

Publication and metadata

• Authors: Tobias Adrian, Marina Moretti, Ana Carvalho, Hee Kyong Chon, Katharine Seal, Fabiana Melo, Jay Surti
• Date: September 6, 2023
• Series: Working Paper No. 2023/181
• Issue: 181
• Volume: 2023
• Pages: 34
• DOI: https://doi.org/10.5089/9798400253782.001
• Stock No: WPIEA2023181
• ISBN: 9798400253782
• ISSN: 1018-5941
• Subject: Bank supervision, Basel Core Principles, Corporate governance, Economic sectors, Financial regulation and supervision, Financial sector policy and analysis, Financial sector stability, Stress testing
• Keywords: bank strategy, Bank supervision, bank turbulence, bank turmoil, Banks, Basel Core Principles, business model, compliance departments, Corporate governance, courses of action, Financial sector stability, Global, lack of independence, light touch supervision, prudential standards, risk profile, Stress testing, supervision, supervision framework, supervision process

IMF Working Papers — Good Supervision: Lessons from the Field

Content in this bundle

• wpiea2023181-print-pdf
  • wpiea2023181-print-pdf (Markdown version)
  • wpiea2023181-print-pdf (PDF)