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Integrated financial supervision: Which model?

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  • Cihák, Martin
  • Podpiera, Richard

Abstract

Integrated agencies supervising banks, nonbank financial institutions, and securities markets have been gaining popularity around the globe. Using a unique data set on compliance with international standards in 84 countries, we find that greater supervisory integration is associated with higher quality of insurance and securities supervision and greater consistency of supervision across sectors. Within the different forms of integration, we find some support for the "twin peaks" model that integrates supervision across sectors but separates business conduct and prudential supervision. We also find that whether supervision is located inside or outside the central bank has no significant relation to supervisory quality.

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  • Cihák, Martin & Podpiera, Richard, 2008. "Integrated financial supervision: Which model?," The North American Journal of Economics and Finance, Elsevier, vol. 19(2), pages 135-152, August.
    • Handle: RePEc:eee:ecofin:v:19:y:2008:i:2:p:135-152
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    4. Ovidiu Stoica & Roxana Scantee, 2012. "Financial Supervision and Banking Competition in European Union," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 8(6), pages 56-66, December.
    5. Cihak, Martin & Demirguc-Kunt, Asli & Johnston, R. Barry, 2013. "Incentive audits : a new approach to financial regulation," Policy Research Working Paper Series 6308, The World Bank.
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    7. Reza Siregar & Lim C.S. Vincent & Victor Pontines, 2011. "Post Global Financial Crisis: Issues and Challenges for Central Banks of Emerging Markets," Staff Papers, South East Asian Central Banks (SEACEN) Research and Training Centre, number sp80, April.
    8. Martin Čihák & Alexander Tieman, 2011. "Quality of Financial Sector Regulation and Supervision Around the World," Chapters, in: Sylvester Eijffinger & Donato Masciandaro (ed.), Handbook of Central Banking, Financial Regulation and Supervision, chapter 15, Edward Elgar Publishing.
    9. Reza Siregar & Lim, C.S. Vincent, 2011. "Living with Macro-financial Linkages: Policy Perspectives and Challenges for SEACEN Countries," Staff Papers, South East Asian Central Banks (SEACEN) Research and Training Centre, number sp79, April.
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    12. Han Miao, 2017. "Twin Peaks Regulation After the Global Financial Crisis: A Reform Model for China?," Asian Journal of Law and Economics, De Gruyter, vol. 8(3), pages 1-30, December.
    13. Mr. Martin Cihak & Mr. Wim Fonteyne, 2009. "Five Years After: European Union Membership and Macro-Financial Stability in the New Member States," IMF Working Papers 2009/068, International Monetary Fund.
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