Is there a need to rethink the supervisory process

Abstract

The focus of this paper is on financial regulation and supervision, principally the latter, with a view to recommending approaches that could strengthen the effectiveness of financial supervision and reduce the chances that financial supervisors would miss or fail to deal with the emerging symptoms of another such crisis. In order to discuss improvements, it will be necessary to discuss some of the more important causes, but this paper is not intended to provide a comprehensive analysis of the manifold ways in which financial regulation and supervision contributed to the financial crisis.