Politicians and Financial Supervision Unification Outside the Central Bank: An Update of Theory and Evidence

Politicians and Financial Supervision Unification Outside the Central Bank: An Update of Theory and Evidence

Politicians and Financial Supervision Unification Outside the Central Bank: An Update of Theory and Evidence

n increasing number of countries show a trend towards a certain degree of consolidation of powers in financial supervision, which has resulted in the establishment of unified regulators, that are different from the national central banks. By contrast a high involvement of the central bank in supervision seems to be correlated with a multi-authorities regime (central bank fragmentation effect).

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