What We Do

Alongside regulation, resolution and sound industry practices, effective supervision is a core part of a stable and efficient financial system. Getting it right is an important common interest of the authorities and the financial sector.

The issue of how to ensure such effective supervision has become increasingly central in the global reform agenda. In November 2010, the FSB issued a report on the issue: ‘Intensity and Effectiveness of SIFI Supervision’, which was endorsed by the G-20 at the Seoul Summit.

The Institute of International Finance and its members very much welcome the heightened emphasis on this area and believe that the industry has an essential role to play in making supervision work.

With this in mind, in October 2010, the Institute established a senior level Effective Supervision Advisory Group (ESAG) under the Chairmanship of Kerstin af Jochnick, now the Managing Director of the Swedish Bankers Association and formerly chair of the Committee of European Banking Supervisors (CEBS), to look at how the industry can best contribute and engage in a constructive dialogue with regulators and supervisors on the issue. The issue has also been considered in the Special Committee on Effective Regulation.

Current Workflow

The IIF is currently finalizing an industry paper on the issue, aimed to contribute to the strengthening of supervision by setting out a constructive industry perspective on making high quality and intensive supervision fully effective. It expects to release the paper in June 2011.