Cover Should Financial Sector Regulators Be Independent?
Should Financial Sector Regulators Be Independent?
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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, but also hindered regulators and supervisors from taking action against troubled banks. This paper investigates why, to fulfill their mandate to preserve financial sector stability, financial sector regulators and supervisors need to be independent-from the financial services industry as well as from the government-as well as accountable.

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Author:
Mr. Marc G Quintyn
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and
Mr. Michael W Taylor
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Series:
Economic Issues
Publisher:
International Monetary Fund
Language:
English
Publication Date:
08 Mar 2004
DOI:
https://doi.org/10.5089/9781589063099.051
ISBN:
9781589063099
ISSN:
1020-5098
Pages:
18
Keywords:
EI; central bank; independence; authority; regulator; independence work; agency independence; grant independence; budgetary autonomy; central bank action; independence of supervision; central bank procedure; government ministry; supervisory independence; independence of the central bank; Financial sector; Central bank autonomy; Financial sector stability; East Asia
Legal-disclaimer:
The views expressed here are those of the author(s) of this Economic Issues publication or of the original source materials and should not be attributed to or reported as representing the views of the International Monetary Fund, its Executive Board, or the governments of any IMF members.
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