European Parliament Library

The Fear of Freedom :, Politicians and the Independence and Accountability of Financial Sector Supervisors, Michael Taylor, Marc Quintyn, Silvia Ramirez

Compared with the case of central bank independence, independence for financial sector supervisors remains more controversial. This paper analyzes changes in independence and accountability arrangements in a set of 32 countries that overhauled their legal and/or institutional frameworks for supervision in recent years. Despite improvements, there is strong evidence that the endorsement of independence remains half-hearted, which shows itself through either overcompensation on the accountability side, or resort to political control mechanisms. The latter could potentially undermine the agency's credibility. The results indicate that policymakers still need to be persuaded of the long-term benefits of independence for financial sector soundness, and of the potential for a virtuous interaction between independence and accountability, if the arrangements are well-designed
Table Of Contents
Table of Contents; I. Introduction and Overview; II. Governance, Independence, and Accountability; A. The Governance Nexus; B. Four Pillars of Regulatory Governance; III. Independence and Accountability in Practice; A. The Four Dimensions of Independence; B. The Dimensions of Accountability; IV. What Are the Emerging Trends?; A. Methodology; Tables; 1. Mapping Accountability Arrangements; B. General Overview; 2. Independence and Accountability Overview; C. Unfamiliarity; 3. Overview of Changes in the Ratings; D. Fear of Freedom: What Worries Governments the Most?; Figures
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (52 p.)
Specific Material Designation
Form Of Item

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