Cover IMF Working Papers
A Behavioral Approach to Financial Supervision, Regulation, and Central Banking
Author:
Mr. Ashraf Khan
Search for other papers by Mr. Ashraf Khan in
Current site
Google Scholar
PubMedClose
https://orcid.org/0000-0002-0084-0240
Series:
IMF Working Papers
Volume/Issue:
Volume 2018: Issue 178
Language:
English
Publication Date:
02 Aug 2018
DOI:
https://doi.org/10.5089/9781484372289.001
ISBN:
9781484372289
ISSN:
1018-5941
Pages:
56
Keywords:
WP; corporate governance; market norm; risk management; social science; crowding out
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (1.4 MB) Download Epub
This paper describes how behavioral elements are relevant to financial supervision, regulation, and central banking. It focuses on (1) behavioral effects of norms (social, legal, and market); (2) behavior of others (internalization, identification, and compliance); and (3) psychological biases. It stresses that financial supervisors, regulators, and central banks have not yet realized the full potential that these behavioral elements hold. To do so, they need to devise a behavioral approach that includes aspects relating to individual and group behavior. The paper provides case examples of experiments with such an approach, including behavioral supervision. Finally, it highlights areas for further research.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2018: Issue 178