01963cas a2200253 a 4500 AALejournalIMF001884 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451846560 1018-5941 BD-DhAAL BD-DhAAL Taylor, Michael. Regulatory and Supervisory Independence and Financial Stability / Michael Taylor, Marc Quintyn. Washington, D.C. : International Monetary Fund, 2002. 1 online resource (54 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Despite its importance, the issue of financial sector regulatory and supervisory independence (RSI) has received only marginal attention in literature and practice. However, experience has demonstrated that improper supervisory arrangements have contributed significantly to the deepening of several recent systemic banking crises. In this paper we argue that RSI is important for financial stability for the same reasons that central bank independence is important for monetary stability. The paper lays out four key dimensions of RSI-regulatory, supervisory, institutional and budgetary-and discusses ways to achieve them. We also discuss institutional arrangements needed to make independence work in practice. The key issue in this respect is that agency independence and accountability need to go hand in hand. The paper discusses a number of accountability arrangements. Mode of access: Internet Quintyn, Marc. IMF Working Papers; Working Paper ; No. 2002/046 Full text available on IMF http://elibrary.imf.org/view/journals/001/2002/046/001.2002.issue-046-en.xml IMF e-Library