Good Supervision: Lessons from the Field

Download or read book Good Supervision: Lessons from the Field written by Mr. Tobias Adrian and published by International Monetary Fund. This book was released on 2023-09-06 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: Keeping banks safe and sound hinges on good supervision. The bank failures of March 2023 precipitated questions about the effectiveness of supervision. This paper reflects on lessons learned from this banking turmoil and reviews global progress in delivering effective supervision over the past ten years. It finds progress in areas like risk monitoring, stress testing, and business model analysis. Yet, progress has also been hampered by deficiencies in supervisory approaches, techniques, tools, and (use of) corrective and sanctioning powers, as well as by unclear mandates, inadequate powers, and lack of independence and resources. Overcoming these deficiencies requires supervisors to improve their own performance and other policy makers to contribute to ensuring vigilant, independent and accountable supervision.