[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-321803-105":59,"doc-detail-321803-en":131},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":124,"head_meta":126,"extra_data":128,"updated_unix":130},105,"en","the-future-of-banking-supervision-enhancing-efficiency-and-competitiveness","The Future of Banking Supervision - Enhancing Efficiency and Competitiveness","","A speech by Jerry L. Jordan outlines how banking supervision should evolve as financial markets and institutions change. It argues that supervisors must rely more on market participants’ judgments because no single agency can fully understand real-time risk. The commentary maintains enduring supervisory goals—efficiency and competitiveness, plus protection from systemic risk and deposit insurance losses—while adjusting priorities to focus on market functioning and the financial system as a whole. Key proposals include removing barriers and achieving parity among intermediaries.",{"@graph":69,"@context":123},[70,84,106],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/the-future-of-banking-supervision-enhancing-efficiency-and-competitiveness/321803/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/the-future-of-banking-supervision-enhancing-efficiency-and-competitiveness/321803.png","ImageObject",300,407,{"name":92,"@type":93},"Aria","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-30","2026-09-21",true,{"@type":102,"interactionType":103,"userInteractionCount":105},"InteractionCounter",{"@type":104},"ViewAction",11,{"@type":107,"mainEntity":108},"FAQPage",[109,115,119],{"name":110,"@type":111,"acceptedAnswer":112},"Why should banking supervisors rely more on market participants’ judgments?","Question",{"text":113,"@type":114},"Because it is impossible for any single individual or supervisory agency to fully comprehend an institution’s real-time risk profile. Collective market knowledge is essential to evaluate risk-bearing capabilities and discipline business practices.","Answer",{"name":116,"@type":111,"acceptedAnswer":117},"What enduring goals does the speech say banking supervision should keep?",{"text":118,"@type":114},"It emphasizes enhancing the efficiency and competitiveness of the financial system, and protecting the economy and taxpayers from systemic risk and related deposit insurance fund losses.",{"name":120,"@type":111,"acceptedAnswer":121},"What first step does the speech recommend to achieve parity among intermediaries?",{"text":122,"@type":114},"Remove or ease restrictions on the lines of financial business that banks can enter, including improving the method of product regulation and shifting the intervention burden toward regulators when needed.","https://schema.org",{"og:url":83,"og:type":125,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":127,"canonical":83},"index,follow",{"doc_id":129,"site_id":62},321803,1790101458,{"code":4,"msg":5,"data":132},{"doc_id":129,"user_id":133,"nickname":92,"user_avatar":134,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":135,"file_id":136,"file_url":137,"file_type":138,"file_size":139,"view_count":105,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":24,"language":140,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":67,"update_tm":144,"read_time":145,"preview_page_count":4},2336464648322,"https://ap-avatar.wpscdn.com/avatar/2200025388227c56fec?_k=1778556882303663488","by Jerry L.Jordan  \nI  \nI believe that in the years to come,bank auditors will be playing an ever-increasing role in the regulatory systemand in ensuring the wll-being of banksand the financial system.This will hap-pen not because of new legislation orregulations,but because market partici-pants and banking officials need infor-mation about financial institutions that isaccurate,timely,and comprehensive.Inmy remarks,I will elaborate on howmarket forces have affected the evolu-tion of the financial services industry,paying particular attention to the roles ofinformation and auditing.  \nWhile it is obvious that the financial sys-tem's structure and products are chang-ing rapidly,we can't predict exactly how,or at what pace,the financial structurewill evolve.Nor can we foresee what themost efficient form of financial structurewill be.We do know that financial insti-tutions will continue to become moresimilar as the restraints of the current reg-ulatory system are removed or are furtheroutflanked by less-regulated—or unreg-ulated—competitors.Banking compa-nies are already combining securities,insurance,underwriting,and venturecapital activities with traditional bankingproducts.At the same time,we see manycompanies beginning to \"de-aggregate,\"or to spin off lines of business and con-centrate on their core competencies.  \nI would like you to consider the possibil-ity that banking supervisors can actuallyassist,rather than resist,market disci-pline.The inevitability ofgreater relianceon market participants'judgments ratherthan regulators'judgments stems fromthe fact that it is now impossible for any  \n# The Future of Banking Supervision\n\nindividual or supervisory agency to fullycomprehend the real-time risk profile ofa diverse and complex financial institu-tion.Thus,it is essential that we enlistthe collective knowledge of many marketparticipants to evaluate an institution'srisk-bearing capabilities and to exert dis-cipline on its business practices.In thefuture,the job of banking supervisorswill be to ensure that markets are work-ing effectively,rather than to supplantmarkets.Supervisors will pay moreattention to the functioning of the finan-cial system as a whole,and less attentionto the operation of individual insitutions.That premise underlies much of mythinking and several of my suggestionsabout the future of banking supervision.  \nEven though the financial system andthe day-to-day activities of bank supervi-sors are changing,the basic goals ofbanking supervision will remain con-stant.The challenge is to find ways thatbanking supervision can be changed sothat its enduring goals are more fullyachieved with less cost to banks,theircustomers,and taxpayers.In my re-marks,I will emphasize two goals:en-hancing the efficiency and competitive-ness of the financial system,andprotecting the economy and taxpayersfrom systemic risk and consequentdeposit insurance fund losses.We mightquibble about the wording,and Ireadilyadmit that there are other goals(such asprotecting consumers against fraud,deception,and discrimination).Never-theless,these two categories of goalscapture the essence of the objectives thatsupervisors will aim to meet as the envi-ronment around them changes.  \nApril 1,1996  \nThis Economic Commentary wasexcerpted from a speech that FederalReserve Bank of Cleveland PresidentJerry L.Jordan delivered to the BankAdministration Institute's BankAuditing and Regulatory ComplianceConference,held in Orlando onMarch 19,1996.  \n## ■ Enhancing Efficiencyand Competitiveness\n\nIn the past,legislation and regulationshave defined banking as we know it.TheNational Bank Act,the Federal ReserveAct,and the Glass-Steagall Act have de-fined what a banking organization canandcannot do.The McFadden Act,theDouglas amendment to the Bank HoldingCompany Act of 1956,and other legisla-tion have determined the place of busi-ness and defined the corporate formrequired to do it.The national and statebanking authorities,deposit insuranceagencies,and Federal R","cbCaifFYPmUrdWea","https://ap.wps.com/l/cbCaifFYPmUrdWea","pdf",1326374,"English","# The Future of Banking Supervision\n## Enhancing Efficiencyand Competitiveness\n## Removing Barriers","[{\"question\":\"Why should banking supervisors rely more on market participants’ judgments?\",\"answer\":\"Because it is impossible for any single individual or supervisory agency to fully comprehend an institution’s real-time risk profile. Collective market knowledge is essential to evaluate risk-bearing capabilities and discipline business practices.\"},{\"question\":\"What enduring goals does the speech say banking supervision should keep?\",\"answer\":\"It emphasizes enhancing the efficiency and competitiveness of the financial system, and protecting the economy and taxpayers from systemic risk and related deposit insurance fund losses.\"},{\"question\":\"What first step does the speech recommend to achieve parity among intermediaries?\",\"answer\":\"Remove or ease restrictions on the lines of financial business that banks can enter, including improving the method of product regulation and shifting the intervention burden toward regulators when needed.\"}]","The Future of Banking Supervision - Enhancing Efficiency and Competitiveness | PDF",1789960297,13]