Weekend Reading: The Limits of Supervising at a Distance — Why On-Site Inspections Remain Essential
Head of On-site Inspections and AQR Section in the Division of Financial Risk Inspections at the European Central Bank (ECB).
Jan 11, 2026
Thoughts
Head of On-site Inspections and AQR Section in the Division of Financial Risk Inspections at the European Central Bank (ECB).
Jan 11, 2026
Thoughts
Over the past decade, the International Monetary Fund (IMF) and The World Bank , through the Financial Sector Assessment Program (FSAP), have repeatedly examined the effectiveness of banking supervision across jurisdictions. One conclusion emerges with striking consistency: on-site inspections (OSIs) remain one of the weakest elements of supervisory practice, even in advanced economies.
This finding lies at the heart of “A comparative review of worldwide on-site banking supervision trends through the lens of IMF/World Bank FSAP”, which analyses FSAP Basel Core Principles (BCP) assessments conducted over the last ten years. Despite increasingly sophisticated regulatory frameworks, extensive post-crisis reforms, and growing reliance on supervisory technology, FSAP evidence points to a persistent gap between the formal recognition of OSIs and their effective implementation.
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