Financial Supervisory Independence and Accountability - Exploring the Determinants

36 Pages Posted: 1 Jul 2008

See all articles by Donato Masciandaro

Donato Masciandaro

Bocconi University - Department of Economics

Marc Quintyn

International Monetary Fund (IMF)

Michael Taylor

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

Date Written: June 2008

Abstract

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.

Keywords: Working Paper, Governance, Bank supervision, Central banks, Political economy

Suggested Citation

Masciandaro, Donato and Quintyn, Marc and Taylor, Michael William, Financial Supervisory Independence and Accountability - Exploring the Determinants (June 2008). IMF Working Paper No. 08/147, Available at SSRN: https://ssrn.com/abstract=1154324

Donato Masciandaro (Contact Author)

Bocconi University - Department of Economics ( email )

Via Gobbi 5
Milan, 20136
Italy

Marc Quintyn

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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