Issues in the Unification of Financial Sector Supervision

By Richard K. Abrams, Michael W. Taylor. Social Science Research Network, 2000

119 citations recorded by the source corpus.

The paper considers the generic arguments for and against the creation of a unified regulatory agency, covering each of the main types of financial institutions (banks, insurers and securities firms). The strongest arguments for unification are the enhanced oversight of financial conglomerates and the economies of scale they can potentially deliver. However, there are also a number of potentially serious disadvantages to unification, especially the risk that the change process will be mismanaged and will result in a reduction in regulatory capacity. The issue requires careful deliberation and ultimately depends on a matrix of factors which vary in importance from country to country.

View Paper: https://www.semanticscholar.org/paper/7cbb73c93c99e6b8bc33b26505020c7fe456e85d

Citations in the corpus

• A Cross-Country Analysis of the Bank Supervisory Framework and Bank Performance (2003, unknown): “…effectively, and in particular to insure that supervisory oversight of risk management by such conglomerates is not fragmented, uncoordinated, or incomplete, some have argued that a supervisor with broad scope to cover all financial services is necessary [Abrams and Taylor (2000), Whalen (2001)].”