Should Financial Sector Regulators Be Independent?
Author:
Mr. Marc G Quintyn
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Mr. Michael W Taylor
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Language:
English
Print Publication Date:
08 Mar 2004
Keywords:
EI; central bank; independence; authority; regulator; independence work

Abstract

In nearly every major financial crisis of the past decade—from East Asia to Russia, Turkey, and Latin America—political interference in financial sector regulation helped make a bad situation worse. Political pressures not only weakened financial regulation generally, they also hindered regulators and the supervisors who enforce the regulations from taking action against banks that ran into trouble. In so doing, they crippled the financial sector in the run-up to the crisis, delayed recognition of the severity of the crisis, slowed needed intervention, and raised the cost of the crisis to taxpayers.

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Cover Should Financial Sector Regulators Be Independent?
Should Financial Sector Regulators Be Independent?
ISBN:
9781589063099
ISSN:
1020-5098
Publication Date:
08 Mar 2004
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781589063099.051
Pages:
18