The Effectiveness and the Efficiency of the Banking Supervisory Activity. An Empirical Analysis

Abstract

The recent financial crisis has proven just how expensive the process for the reestablishing of the financial stability and for restoring the public confidence in the banking system, actually is. Given its effects and the skepticism regarding the effectiveness of the supervisory systems of the financial markets, it is only natural to wonder whether the compliance with the regulatory standards in the prudential banking field, can be considered as sufficient for ensuring the viability and resilience of the banking systems. The answer was given by the reaction of the political factors, consisting in the setting up of a new regulatory and supervisory framework at EU level, well structured and integrated, which must, however, be sustained by reconsidering the approach on the supervisory activity at each Member State’s level. Therefore, the assessment of the supervision of the credit institutions, performed by the national supervisory authorities, represents a key factor.

Keywords

• prudential supervision
• efficiency
• effectiveness assessment
• risk matrix