Global banking supervision overhaul crucial for financial stability and cooperation
The article discusses how different countries' banking supervisors need to work together better to prevent financial crises. The researchers found that supervisors often focus only on their own country's banks, ignoring risks to other countries. This can lead to problems for countries where foreign banks operate. International groups are trying to improve cooperation between supervisors, but more needs to be done to make sure supervisors have the right incentives to work together effectively.