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THE NUMBER OF FINANCIAL REGULATORY AUTHORITIES AND FINANCIAL STABILITY: CROSS-COUNTRY EXPERIENCES

Bulletin of Monetary Economics and Banking

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Title THE NUMBER OF FINANCIAL REGULATORY AUTHORITIES AND FINANCIAL STABILITY: CROSS-COUNTRY EXPERIENCES
 
Creator Soedarmono, Wahyoe
Sitorus, Romora Edward
 
Description This paper attempts to provide evidence whether or not the unification of regulatory institutions for different types of financial sector creates challenges for financial stability. From a sample of 91 countries that provide data on the financial unification index and the central bank involvement index, the empirical results reveal that higher financial unification index or the convergence toward a single supervisory institution outside the central bank, in order to control three different sectors (banking, insurance, and securities), is detrimental for financial stability. However, this finding only holds for developed countries, but dissapears for less developed countries. In parallel, the central bank involvement in financial sector supervision has no impact on financial stability in both developed and less developed countries.  Keywords: Supervisory Regimes, Financial Sectors, Financial Stability  JEL Classification: G18, G21, G28
 
Publisher Bank Indonesia
 
Date 2014-12-22
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://www.bmeb-bi.org/index.php/BEMP/article/view/53
10.21098/bemp.v17i1.53
 
Source Buletin Ekonomi Moneter dan Perbankan; Vol 17 No 1 (2014): JULY; 129-145
Buletin Ekonomi Moneter dan Perbankan; Vol 17 No 1 (2014): JULY; 129-145
2460-9196
1410-8046
 
Language eng
 
Relation https://www.bmeb-bi.org/index.php/BEMP/article/view/53/43
10.21098/bemp.v17i1.53.g43
 
Rights Copyright (c) 2015 Wahyoe Soedarmono, Romora Edward Sitorus