The accountability of financial sector supervisors

Policymakers' uneasiness about granting independence to financial sector regulators stems to a large extent from the lack of familiarity with the concept of accountability. This IMF Working Paper gives operational content to accountability and argues that it is possible to do so in a way that encourages and supports agency independence.

The paper first elaborates on the role and purposes of accountability. Second, it shows that the unique features of financial sector supervision point to a more

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