Does the political independence of banking regulators and supervisors improve financial stability? Nicolò Fraccaroli June 18, 2025 This page in: English

https://blogs.worldbank.org/en/allaboutfinance/does-the-political-independence-of-banking-regulators-and-superv Does higher political independence for banking regulators and supervisors improve financial stability? Policy makers seem to agree that this is the case. Since the 2008 financial crisis, regulators and supervisors have been granted increased independence from political bodies. One of the main pillars of the Basel Committee’s core principles for effective banking supervision is the independence of supervisors from governments. The International Monetary Fund and the World Bank regularly assess compliance with this principle as part of their Financial Sector Assessment Program. These assessments often flag independence as one of the principles with the lowest compliance.1