On the design of public institutions: Evidence from financial supervision

Arbeitspapier

This paper studies the allocation of the functions and responsibilities of prudential supervision on public authorities, including the central bank. In particular, it is argued that there are interdependencies in the design of institutions; political decisions on the supervisory structure are not taken in isolation. Analyzing a panel data set of prudential supervision regimes in 98 countries over the period from 1999 to 2010, I find that central banks play a smaller role in supervision and tasks are more decentralized if the central bank is independent and transparent. Measures of firm and fiscal decentralization are typically associated with a greater centralization of supervisory functions outside of the central bank.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Darmstadt Discussion Papers in Economics ; No. 221

Classification and Topics

• Classification: Wirtschaft ; Central Banks and Their Policies ; Financial Institutions and Services: Government Policy and Regulation ; Public Administration; Public Sector Accounting and Audits
• Subject: financial ; prudential ; supervision ; institution ; authority

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Nitsch, Volker
• Event: Veröffentlichung
• (who): Technische Universität Darmstadt, Department of Law and Economics
• (where): Darmstadt
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/175655
• URN: urn:nbn:de:tuda-tuprints-47048
• Last update: 10.03.2025, 11:44 AM CET