Issues in the Unification of Financial Sector Supervision

33 Pages Posted: 14 Feb 2006

See all articles by Richard Abrams

Richard Abrams

International Monetary Fund (IMF)

Michael Taylor

International Monetary Fund (IMF) - Monetary and Exchange Affairs Department

Multiple version iconThere are 2 versions of this paper

Date Written: December 2000

Abstract

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.

Keywords: financial services regulation, prudential supervision, regulatory agencies

JEL Classification: G18, G28, K20, L50

Suggested Citation

Abrams, Richard and Taylor, Michael William, Issues in the Unification of Financial Sector Supervision (December 2000). IMF Working Paper, Vol. , pp. 1-33, 2000. Available at SSRN: https://ssrn.com/abstract=880886

Richard Abrams (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Michael William Taylor

International Monetary Fund (IMF) - Monetary and Exchange Affairs Department ( email )

700 19th Street NW
Washington, DC 20431
United States
202-623-6388 (Phone)

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