Bank Supervisors Struggle to Coordinate in Crisis, Report Shows
Sept. 3 (Bloomberg) — Bank supervisors around the globe risk taking uncoordinated actions in times of financial stress, according to a report from a global group of regulators.
Six out of 14 regulators that responded to a survey said they had “no specific mechanisms for supervisory cooperation” with their counterparts around the globe, according to the report published on the website of the Bank for International Settlements today. One undisclosed regulator cited “difficulties” sharing information, according to the survey.
“There appear to be insufficient specific mechanisms for supervisory cooperation and coordination in periods of crisis and stress, thereby possibly hindering effective intervention in times of crisis,” the report said.
The European Central Bank will assume oversight of euro- area lenders in November to improve the region’s response to crises, which prompted banks including Franco-Belgian lender Dexia SA to receive state aid before being broken up.
The survey of supervisory colleges was conducted jointly by the Basel Committee on Banking Supervision, the International Organization of Securities Commissions and the International Association of Insurance Supervisors.
To contact the reporter on this story: Ben Moshinsky in London at bmoshinsky@bloomberg.net To contact the editors responsible for this story: Patrick Henry at phenry8@bloomberg.net Simone Meier, Steve Bailey
