Financial Supervision as Economic Policy: Importance, Key Facts and Drivers
58 Pages Posted: 4 Sep 2013
Date Written: August 2013
This article presents an overview of the evolution of financial supervision as emerging and relevant tool of the overall economic policy design. We concentrate our analysis on the last three decades, considering the situation in both the advanced and emerging countries and with a special eye on the questions raised by the recent Crisis. We begin with the timeline, discussing the milestones and their drivers. Then we deal with the architecture of supervision, the role of the central bank, the governance of supervision. Finally we address the new twists in the ongoing debate in the wake of the global financial Crisis, from which our proposal to make a clearer distinction between macro and micro prudential supervision follows.
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