2021 CLOSING COMMENTS | The changing role of a bank supervisor

The last decade has been a challenging one for bank supervisors; there was a lot of work to do to fill the gaps laid bare by the Great Financial Crisis. However, the decade ahead is likely to be even more challenging. What’s more, the solutions deployed in the last decade are not likely the same ones needed in the decade ahead.

Early in my career as a supervisor, I was taught to stick very closely to my legislated mandate. Over-regulating was considered as big, or bigger, a risk as under-regulating since it would surely lead to competitive and market distortions and stifle innovation. A good supervisor was like a good referee: they kept the game fair and competitive but remained largely invisible.