Renewed Financial Supervision In Europe - Final Or Transitory?
In order to obtain financial sector stability, adequate financial regulation and supervision are paramount. Despite their crucial role, both failed to prevent or at least mitigate the financial crisis. While financial regulation strives to impose a set of rules that ensure a safe and resilient financial sector, it has proven to contain too many gaps and loopholes. Financial supervision, for its part, mainly aims to monitor whether or not the financial sector abides by the relevant rules. When this is not the case, or when financial stability is at stake, supervisors should be able to bring about an appropriate response.