Should BOT be a watchdog?

- Central Banking staff
- 04 Dec 2003

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This article asks whether a country's central bank should be involved with banking supervision. It looks at the moves to separate the supervision function from the central bank in countries such as Canada and Scandinavia but warns we should keep in mind that the cost to the taxpayer may be greater if supervision is ineffective and leads to bank failures or inappropriate monetary policies.

First published by The Nation, Thailand on 5 December 2003.

Dr Chodechai Suwanaporn of the Ministry of Finance

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