Key challenges for financial supervision after the crisis

This paper argues that these circumstances necessitate a different perspective on the role and scope of financial supervision. Financial stability is determined by a wide range of actors and factors. Although supervisors play a key role in ensuring financial stability, they have incomplete control over outcomes in this area, as they cannot prevent all the problems of financial institutions and markets. In effect, public and political expectations of what financial supervision can achieve need to be moderated.However, supervisors do play a key role in ensuring financial stability. If the financial supervisor becomes more proactive and adaptive and has an adequate degree of independence and discretion while being accountable and transparent to the public and parliament it will be in the best position to play this crucial role. Adopting this proactive and adaptive stance will be a challenging task forfinancial supervisors. The main goal of this paper is to identify the future challenges, dilemmas or tensions for financial supervision and its governance

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