How to Regulate the Regulators: Applying Principles of Good Corporate Governance to Financial Regulatory Institutions

46 Pages Posted: 2 Jun 2017

See all articles by Hadar Yoana Jabotinsky

Hadar Yoana Jabotinsky

Tel Aviv University - Cegla Center for Interdisciplinary Research of the Law

Mathias Siems

European University Institute (EUI); Durham University

Date Written: May 29, 2017

Abstract

There is a growing literature about the question of who should regulate the regulators. This paper is interested in the question of how to regulate the regulators. More specifically, it explores how far it may be feasible to apply rules and principles of good corporate governance to the governance of financial regulators and financial regulatory institutions. For this purpose, the paper discusses the literature on the differences between private and public sector firms and their application to financial regulatory institutions, followed by an assessment of conceptual similarities between the governance of financial regulatory institutions and corporate governance. Subsequently, it turns to the core of the analysis, namely the question how far standards of good corporate governance should be applied to the governance of financial regulatory institutions.

Keywords: Financial Regulatory Institutions, Corporate Governance, Principal-Agent Problem, Independence of Regulators, Organisational Design

JEL Classification: G18, G34, K22, O16

Suggested Citation

Jabotinsky, Hadar Yoana and Siems, Mathias, How to Regulate the Regulators: Applying Principles of Good Corporate Governance to Financial Regulatory Institutions (May 29, 2017). European Corporate Governance Institute (ECGI) - Law Working Paper No. 354/2017. Available at SSRN: https://ssrn.com/abstract=2978112 or http://dx.doi.org/10.2139/ssrn.2978112

Hadar Yoana Jabotinsky

Tel Aviv University - Cegla Center for Interdisciplinary Research of the Law ( email )

Ramat Aviv
Tel Aviv, IL
Israel

Mathias Siems (Contact Author)

European University Institute (EUI) ( email )

Via Bolognese 156 (Villa Salviati)
Firenze, 50139
Italy

HOME PAGE: http://www.eui.eu/siems

Durham University ( email )

Stockton Road
Durham, County Durham DH1 3LE
United Kingdom

HOME PAGE: http://www.dur.ac.uk/mathias.siems

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