Why the Transfer of Bank Supervisory Powers Back to The Bank of England isudA Step in the Right Direction: Revisiting the Role of External Auditors in Bankudand Financial Services Supervision

摘要

The need for effective supervision of capital markets is becoming all the more evident in theudaftermath of the recent LIBOR and rate rigging scandals. Financial regulators or indeed bankudregulators cannot perform such a function effectively without the involvement of auditors in theudsupervisory process. A challenging task awaits the incoming Bank of England Governor, MarkudCarney – particularly given the reduced involvement of auditors in the bank supervisory processudsince the time of assumption of the Financial Services Authority's bank supervisory functions.udHowever, he (as well as other recent financial reforms) may prove to be the much needed boostudrequired in the bank and indeed, financial supervisory process.udThis paper is aimed at highlighting why the transfer of bank supervision back to the Bank ofudEngland is required if further progress is to be made in the effective regulation and supervision ofudthe financial services sector. It also highlights shortcomings which exist and need to be addressed ifudthe Bank of England is to perform its tasks efficiently as well as regain the momentum andudadvantages it had acquired before its supervisory powers were transferred to the Financial ServicesudAuthority