Managing the Quality of Financial Supervision

Measuring the Effects of Financial Sector Supervision

“…In this section we provide various examples of indicators for measuring the effects of financial supervision. For that, we distinguish the performance indicators into two types: 'hard' indicators based on quantitative date, and 'soft' indicators derived from qualitative data (also see Sijbrand and Rijsbergen, 2013). Table 1, at the end of this section, provides an overview of the presented indicators.…”

I Just Cannot Get You Out of My Head: Regulatory Capture of Financial Sector Supervisors

“…2 The terms 'regulation' and 'supervision' are often used interchangeably in financial literature, but have different meanings. Regulation consists of setting the framework within which financial actors must operate, while supervision consists of monitoring the behavior of the financial actors to ensure agreement with the regulatory framework (Sijbrand & Rijsbergen, 2013). In accordance with the literature and for matters of parsimony we use the term regulatory capture to refer to the capture of financial sector regulators and supervisors.…”

The Balancing Act of Effective Supervision: Understanding the Relationship between Internal and External Supervision

“…External Supervision. The core task of external supervision, by independent supervisory authorities, is to monitor whether TMT decisions and activities are in line with formal regulation (Palmer & Cerruti, 2009;Sijbrand & Rijsbergen, 2013), therefore we have measured external supervision in terms of this monitoring activity. Similar to the items used for internal supervision, external supervision was assessed with three adapted items from…”