Does monetary policy affect the central bank's role in bank supervision?

Ioannidou, Vasso (2005) Does monetary policy affect the central bank's role in bank supervision? Journal of Financial Intermediation, 14 (1). pp. 58-85. ISSN 1042-9573

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Abstract

This paper examines whether monetary policy responsibilities alter the central bank's role as a bank supervisor. The analysis focuses on the United States, where the Federal Reserve System shares supervisory duties with the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation. Among the three institutions, the Fed is the only one responsible for monetary policy. Hence, the Fed's supervisory behavior—as captured by formal actions—is compared with the behavior of the other two agencies. The results suggest that the Fed's monetary policy responsibilities do alter its bank supervisory behavior: indicators of monetary policy affect the supervisory actions of the Fed, but do not affect the actions of the other two agencies.

Item Type:
Journal Article
Journal or Publication Title:
Journal of Financial Intermediation
Uncontrolled Keywords:
/dk/atira/pure/subjectarea/asjc/2000/2002
Subjects:
ID Code:
66853
Deposited By:
Deposited On:
27 Sep 2013 08:04
Refereed?:
Yes
Published?:
Published
Last Modified:
16 Oct 2020 07:25