British policymakers should consider what lessons can be learnt from the more rules-based approaches to supervision practiced in other Organisation for Economic Co-operation and Development (OECD) countries, says Professor E. Philip Davis, in a new paper for the OECD.

Davis shows that the crisis has exposed weaknesses in the British supervisory framework as well as in crisis management and resolution. He also suggests that external credit ratings should be used with due caution by regulators and