tailieunhanh - Lecture Legal and regulatory aspects of banking supervision – Chapter 11

The following will be discussed in this chapter: Review of international experience; perspectives of institutional structure of regulator / supervisor; regulation, financial system and the economy; over-regulation; universal functions; role of the central bank; no universal model; two questions of institutional structures and a possible dilemma. | MBF-705 LEGAL AND REGULATORY ASPECTS OF BANKING SUPERVISION OSMAN BIN SAIF Session: ELEVEN Summary of previous session The four Approaches to Financial supervision The Functional Approach CASE Example FRANCE The integrated Approach CASE Example UNITED KINGDOM The Twin peaks Approach CASE Example AUSTRALIA Why institutional / regulatory structure is important? 6 Reasons 2 Agenda of this Session Review of International Experience Perspectives of Institutional Structure of Regulator / Supervisor Regulation, Financial system and the economy Over-Regulation Universal Functions Role of the Central Bank No universal model Two questions of institutional structures and a possible dilemma 3 Agenda of this Session (Contd.) Use of resources Skills and Remuneration Corporate Governance Political Independence 4 Review of International Experience A review of international experience indicates a wide variety of institutional structures. Some countries have created a single agency for prudential . | MBF-705 LEGAL AND REGULATORY ASPECTS OF BANKING SUPERVISION OSMAN BIN SAIF Session: ELEVEN Summary of previous session The four Approaches to Financial supervision The Functional Approach CASE Example FRANCE The integrated Approach CASE Example UNITED KINGDOM The Twin peaks Approach CASE Example AUSTRALIA Why institutional / regulatory structure is important? 6 Reasons 2 Agenda of this Session Review of International Experience Perspectives of Institutional Structure of Regulator / Supervisor Regulation, Financial system and the economy Over-Regulation Universal Functions Role of the Central Bank No universal model Two questions of institutional structures and a possible dilemma 3 Agenda of this Session (Contd.) Use of resources Skills and Remuneration Corporate Governance Political Independence 4 Review of International Experience A review of international experience indicates a wide variety of institutional structures. Some countries have created a single agency for prudential supervision, while others have opted for multiple agencies. Some have also created unified agencies. 5 Review of International Experience (Contd.) There is a spectrum of alternatives rather than an either/or choice, and there is considerable variety within the spectrum and even within the same basic model. 6 Review of International Experience (Contd.) National differences reflect a multitude of factors: historical evolution, the structure of the financial system, political structures and traditions, and the size of the country and financial sector. 7 Review of International Experience (Contd.) Although there is no universal common pattern, there is a general trend towards reducing the number of separate agencies, a move towards integrated prudential supervisory arrangements, reducing the role of the central bank in prudential oversight of financial institutions, increasing emphasis to the central bank in its systemic stability role and, if a unified agency is created, for this not to be the