Empirical Cross-Country Study of Financial Supervisory Architecture: Post-Crisis Period

Abstract

Goal - To study factors determining the development of institutional structures of prudential supervision (financial supervisory architectures) in the aftermath of the 2007-2008 financial and economic crisis for 102 countries included in the sample Main objectives:  Explore the concept of the financial supervisory architecture and its exceptional importance for the effectiveness and efficiency of the general regulatory framework  Determine the link between the institutional structure of the financial supervision and economic resilience  Analyze and structure the existing approaches towards the design of the financial supervision  Explore and compare the existing methodologies of the financial supervision architecture quantification  Develop a model to test empirically the relations between the degree of the supervision consolidation and a set of independent variables  Run the statistical analysis and provide explanation to the obtained results  Suggest the opportunities for future development of the topic and possible implications of the results for the institutions and organizations in charge of the financial supervision. Key finding – GDP per capita, degree of country openness, population, banking sector concentration, cost-to-income ratio and governance quality have the impact on the financial supervisory architecture. Statistical demonstration of the changing role of the central bank in supervision.