Politicians and Financial Supervision Unification Outside the Central Bank: Why Do They Do It?

Politicians and Financial Supervision Unification Outside the Central Bank: Why Do They Do It?

Politicians and Financial Supervision Unification Outside the Central Bank: Why Do They Do It?

n increasing number of countries shows a trend towards a certain degree of consolidation of powers in financial supervision, which has resulted in the establishment of unified regulators, different from the national central banks. On the contrary 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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