The Global Crisis revealed serious deficiencies in the supervision of financial institutions. In particular, regulators neglected organisational culture at the institutional level. This column reviews efforts since 2011 by De Nederlandsche Bank to oversee executive behaviour and cultures at financial institutions. These measures aimed at identifying risky behaviour and decision-making processes at a sufficiently early stage for appropriate countermeasures to be implemented. The findings show that regulators can play a larger part in securing the stability of the financial system by taking an active role in shaping institutional cultural processes.
Jakob de Haan, Wijnand Nuijts, Mirea Raaijmakers, 06 November 2015
Sylvester Eijffinger, Rob Nijskens, 23 November 2012
The Eurozone is moving towards a banking union with the ECB at its centre. This column argues that there are problems with the European Commission’s proposal. The ECB can never supervise all 6000 banks in the Eurozone, supervision should be separated from monetary policy to avoid conflicts of interest, and joint deposit insurance and resolution funds must be created. Furthermore, the ECB should exert constructive ambiguity in its supervision.