Rethinking banking supervision and the SSM perspective
Title: Rethinking banking supervision and the SSM perspective
Author: ANGELONI, Ignazio
Series/Number: Florence School of Banking & Finance (FBF); Policy Briefs; 2015/01
External link: http://fbf.eui.eu
If bank services provide positive externalities to society, then not all taxpayer risk should be removed. • Regulation and supervision should aim at balancing the risks and benefits of banking, taking into account all externalities involved. The correct solution is not one in which all taxpayer risk is removed. • Society should be put in a position to express more explicitly its preference as to where that balance is located. • We need proxies for bank risk and stability, providing a yardstick for setting supervisory goals and measuring performance. • Evidence is needed on the interconnections and feedbacks between banks and the economy.
The Florence School of Banking & Finance is a European platform bringing together practitioners and academics from the Banking and Finance sector to develop a common culture of regulation and supervision in the European Union.
Type of Access: openAccess