The Group of Thirty have just released a special report entitled: "The Structure of Financial Supervision: Approaches and Challenges in a Global Marketplace".
Here’s the blurb:
"This G30 special report compares and analyzes different approaches
taken in financial regulation, revealing the advantages and challenges
of supervisory structures in seventeen markets. It is the first time a
review of regulatory systems of this magnitude has been conducted, as
it surveys the history, statutory and non-statutory elements, methods
of coordination and enforcement, and current issues of each market’s
financial supervisory system. The markets covered in
this report are Australia, Brazil, Canada, China, France, Germany, Hong
Kong, Italy, Japan, Mexico, the Netherlands, Qatar, Singapore, Spain,
Switzerland, the United Kingdom, and the United States."
The conclusions of the study may be summarised as:
- Close and effective coordination and cooperation among the ministry of finance, central bank, and supervisors is essential, whatever form of financial regulatory structure a country adopts.
- Strong leadership and talented people can offset, to some degree, any impediments or deficiencies that stem from non optimal regulatory structures, but at some point regulatory regimes need to be updated and modernized to accommodate financial evolution, market realities, and global integration.
- Most supervisors stress the importance of an effective, transparent, and efficient deposit protection scheme as an integral part of today’s financial regulatory architecture.
- A majority of supervisors recognize the value of supervisory “colleges” for systemically important global financial institutions, but most also believe that flexibility in the procedures and operations of these colleges is critical to their future success.
- Central banks and their supervisors remain concerned that current structures for international coordination and the variety of national supervisory approaches and jurisdictions have yet to be adequately tested by the threat of the failure of a systemically important international financial institution
It’s particularly timely and a free copy can be courtesy of Deliotte’s (2 Mb download).
Get it while file servers last …