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Erschienen in:
2020 | OriginalPaper | Buchkapitel
8. What Supervisors Should Not Do?
verfasst von : Damir Odak
Erschienen in: A Political Economy of Banking Supervision
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Abstract
Supervisors should not receive other tasks besides improving the resilience of the banking system. There are at least three reasons why it is not a good idea: distracting focus, public pressure on supervisor not related to supervision and the conflict of interest. A broader scope of supervisory responsibility potentially infringes the equality of banks before the law. Their rights can be significantly diminished compared with other persons, natural and legal. Should supervision consider the effects its measures have on the banks’ clients and should it use available tools and authority to achieve other political objectives besides the resilience of the banking system?