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Improving the Governance of Financial Supervisors

Published online by Cambridge University Press:  04 October 2011

Luca Enriques
Affiliation:
Professor of Law, University of Bologna, ECGI and Consob.
Gerard Hertig
Affiliation:
Professor of Law, ETH Zurich and ECGI.
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Abstract

We offer three basic mechanisms to improve the governance of ‘normal times’ financial supervisors (as opposed to resolution agencies and systemic risk boards). To enhance supervisory effectiveness, we propose first to institutionalise strong CEOs, with boards or commissions being limited to basic policy decision-making and to monitoring. Second, lower-level staff would get increased line responsibilities. Finally, subjecting supervisors to reinforced disclosure requirements would improve market responsiveness.

Type
Articles
Copyright
Copyright © T.M.C. Asser Press and the Authors 2011

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