Cooperation and Coordination between the Financial Authorities: A Review of the Experiences of the United Kingdom, Norway, Sweden, and Korea
JEL Classification: D73, E02, E58
Abstract
As far as institutional collaboration between the financial authorities in pursuit of financial stability is concerned, Korea has remained seriously backward. Although the issue is widely regarded as important, scholars and policymakers in Korea have tended to stop short of putting microscopic lenses to it. Presented is a comparative review of the experiences of the United Kingdom, Norway, and Sweden, all of which, like Korea, have adopted the regime of integrated financial supervision. The paper finds that in Norway and in Sweden institutional collaboration is more about substance and practice over form and procedure, whereas the opposite is true in the United Kingdom. Policy implications to Korea as well as a couple of tentative interpretations of these findings are discussed.
Keywords:
Institutional collaboration, Financial authorities, Financial stability, General MoUs, Special MoUsAcknowledgments
This work was supported by the Korea Research Foundation Grant funded by the Korean Government (MOEHRD, Basic Research Promotion Fund) (KRF-2006-321-B00328). Part of this paper was written when the author stayed at the Bank of Korea as a visiting scholar early in 2008. Special thanks go to those at the Bank of Korea, Financial Supervisory Service, Finansinspektionen, Kredittilsynet, Norges Bank, and at Sveriges Riksbank, who provided the author with useful information, comments or answers in response to his inquiries at various stages of this research. Finally, the comments made on an earlier version by Mr. Arild J. Lund of Norges Bank and by two anonymous referees of this Journal are acknowledged.
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