Financial Supervisors in Small Markets – Independency or Mergers

Abstract

Last financial crisis brought out the debate about efficacy of financial sector’s supervisors. There is a strong debate about the reform of supervising system in the States and within EU countries. In fact, all of the administrations in developed countries are now facing the main question how to organize financial sector’s supervisors to make them more efficient and to prevent the new, even bigger financial crisis in the future. Purpose of this article is to raise organizational questions in connection with the possible conflict of interests. Article analyses legal norms and with comparative approach tends to present possible solutions. There are two main directions: unified supervisor authority or two or more authorities. Which direction will be chosen, depends on answer which organizational structure mostly prevents conflict of interest.