Weak Bank Supervision Led to Global Financial Crisis: Lessons for Asia.
Bank regulation and supervision are crucial for financial stability. The global financial crisis showed that weak bank supervision led to the crisis. Supervisors didn't inspect banks enough or use risk-based supervision effectively. They also didn't catch problems in banks' risk management and governance. Offsite surveillance relied too much on banks' own data. To prevent future crises, banking regulation should be improved and new policies should be used alongside it.