The Accountability of Financial Sector Supervisors Principles and Practice

52 Pages Posted: 11 Jan 2006

See all articles by Marc Quintyn

Marc Quintyn

International Monetary Fund (IMF)

Eva H.G. Hüpkes

Michael Taylor

Hong Kong Monetary Authority

Date Written: March 2005

Abstract

Policymakers' uneasiness about granting independence to financial sector regulators stems to a large extent from the lack of familiarity with, and elusiveness of, the concept of accountability. This paper gives operational content to accountability and argues that it is possible to do so in a way that encourages and supports agency independence. The paper first elaborates on the role and purposes of accountability. Second, it shows that the unique features of financial sector supervision point to a more complex system of accountability arrangements than, for instance, the conduct of monetary policy. Finally, the paper discusses specific arrangements that can best secure the objectives of accountability and, thus, independence. Our findings have a wider application than financial sector supervision.

Keywords: Financial regulation, regulatory agencies, public administration accountability

JEL Classification: G18, G28, H83, L51, N20

Suggested Citation

Quintyn, Marc and Hüpkes, Eva H.G. and Taylor, Michael, The Accountability of Financial Sector Supervisors Principles and Practice (March 2005). IMF Working Paper No. 05/51, Available at SSRN: https://ssrn.com/abstract=874273

Marc Quintyn (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Michael Taylor

Hong Kong Monetary Authority ( email )

3 Garden Road, 30th Floor
Hong Kong
China

No contact information is available for Eva H.G. Hüpkes

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