JOURNAL OF ACCOUNTING AND FINANCE
The Effectiveness of Financial Supervision Frameworks
Author(s): Wook Sohn, Iegor Vyshnevskyi
Citation: Wook Sohn, Iegor Vyshnevskyi, (2020) "The Effectiveness of Financial Supervision Frameworks," Journal of Accounting and Finance, Vol. 20, ss. 1, pp. 82-92
Article Type: Research paper
Publisher: North American Business Press
Abstract:
This paper examines the effectiveness of five types of financial supervisory frameworks by using 49 member countries of the G20 and/or OECD for the period of 1997-2015. We find that the effectiveness, proxied by the probability of default of a country's banking system, of the hybrid supervisory model is statistically higher than that of the institutional (sectoral) framework. This result suggests that no single financial supervisory model is superior to all others, and creating the best model may require some adjustment of the typical four models.