Supervisory Arrangements Research Articles

‘Designing in’ Interaction in Pedagogy: Collaborative Team Supervision and Midcareer Doctoral Candidates in Australia

Team supervision has become accepted practice in supervision of doctoral candidates in Australia, though there is broad interpretation of what might be understood as ‘team’. In some instances team means little more than a principal supervisor and a ‘name only’ co-supervisor. In other instances the team is a fully collaborative of two or more supervisors working with the doctoral student. Remarkably little research has been conducted into the way team supervision actually works, and the impact on teaching and learning for the stakeholders. While initially this research project has been directed at understanding how mid-career doctoral candidate’s bodies of industrial knowledge, experience and culture might affect the power dynamics that are fundamental to team work, more needs to be understood about the phenomenon generally. Mid-career doctoral candidates are uniquely positioned, bringing with them substantial bodies of knowledge that may increase balance in power dynamics that are more typically asymmetric, and sharing knowledge sets with supervisors in collaborative supervisory arrangements. This paper lays the ground work for a qualitative study into this under theorized aspect of doctoral studies.

New Challenges to Political Party Financial Supervision in Portugal

After a decade of successive changes to its political financing regulatory framework, and a cumbersome dual monitoring system, Portugal has decided to adopt a single supervisory body – the Entity for Accounts and Political Financing (EAPF). Notwithstanding these improvements, the diffused perception of the existing political financing regulatory and supervisory arrangements remains overall negative. This article discusses the scope and impact of the new Portuguese political financing supervisory body, by focusing on its format, location, mission, competences, composition, resources and performance and proposes alternative integrated solutions for improving its enforcement capacity.

'Home Country Control with Consent': A New Paradigm for Ensuring Trust and Cooperation in the Internal Market?

Home country control has been a long-standing principle of supervisory governance in the internal market. However, in the wake of the financial crisis the principle has come under stress. This paper looks at ways to deal with home country control by putting forward for discussion a new paradigm which I will coin ‘home country control with consent’ (HCC-C). My aim is to examine the building blocks of HCC-C but also to reflect more generally on the merit of a (mostly horizontal) supervisory arrangement which allows other (host) actors to get involved in the decision-making of a home state authority. To describe such involvement, I will use the term ‘interference’. The basic problematic that I seek to address is that of ensuring cooperation and trust between national competent authorities. To identify the building blocks of HCC-C, I will turn to the recently enacted European Market Infrastructure Regulation (EMIR) which provides a possible, even if embryonic, template for HCC-C.

The European Single Supervisory Mechanism

The establishment of the single supervisory mechanism (SSM) is the first fundamental step towards European banking union. This article examines the significant legal issues raised by the creation of the SSM as reflected in the legal texts adopted in September 2013 by the Council and the Parliament in the light of policy considerations and political pressures. In particular, the article analyses the role of the ECB as a prudential supervisor, including its scope and powers, its interaction with national supervisory authorities, governance arrangements, independence and accountability. The article also considers the implications for the non-Euro Area Member States which opt into the SSM, Member States which choose not to participate (in particular the UK), the European Banking Authority and the European Systemic Risk Board. The article concludes by attempting a first evaluation of the emerging SSM. The short-term challenge for the SSM will be to build up its institutional capacity. In the longer term, the SSM's performance could be affected by its own institutional design (forged under legal constraints and political compromise) and by the arduous process of completing the single regulatory rulebook for the European Union.

Home Country Control with Consent: A New Paradigm for Ensuring Trust and Cooperation in the Internal Market?

AbstractHome country control has been a long-standing principle of supervisory governance in the internal market. However, in the wake of the financial crisis, the principle has come under stress. This chapter looks at ways to deal with home country control by putting forward for discussion a new paradigm which I will coin ‘home country control with consent’ (HCC-C). My aim is to examine the building blocks of HCC-C but also to reflect more generally on the merit of a (mostly horizontal) supervisory arrangement which allows other (host) actors to get involved in the decision making of a home state authority. To describe such involvement, I will use the term ‘interference’. The basic problematic that I seek to address is that of ensuring cooperation and trust between national competent authorities. To identify the building blocks of HCC-C, I will turn to the recently enacted European Market Infrastructure Regulation (EMIR) which provides a possible, even if embryonic, template for HCC-C.

Home Country Control with Consent: A New Paradigm for Ensuring Trust and Cooperation in the Internal Market?

Abstract Home country control has been a long-standing principle of supervisory governance in the internal market. However, in the wake of the financial crisis, the principle has come under stress. This chapter looks at ways to deal with home country control by putting forward for discussion a new paradigm which I will coin ‘home country control with consent’ (HCC-C). My aim is to examine the building blocks of HCC-C but also to reflect more generally on the merit of a (mostly horizontal) supervisory arrangement which allows other (host) actors to get involved in the decision making of a home state authority. To describe such involvement, I will use the term ‘interference’. The basic problematic that I seek to address is that of ensuring cooperation and trust between national competent authorities. To identify the building blocks of HCC-C, I will turn to the recently enacted European Market Infrastructure Regulation (EMIR) which provides a possible, even if embryonic, template for HCC-C.

Group psychotherapies for depression in persons with HIV: A systematic review

Studies investigating effectiveness of group psychotherapy intervention in depression in persons with HIV have showed varying results with differing effect sizes. A systematic review of randomized controlled trials of group psychotherapy in depression in persons with HIV has been conducted to present the best available evidence in relation to its effect on depressive symptomatology. Electronic databases were searched to identify randomized controlled trials. Selected studies were quality assessed and data extracted by two reviewers. If feasible, it was planned to conduct a meta-analysis to obtain a pooled effect size of group psychotherapeutic interventions on depressive symptoms. Odds ratio for drop out from group was calculated. The studies were assessed for their quality using the Quality Rating Scale and other parameters for quality assessment set out by COCHRANE. The quality of reporting of the trials was compared against the Consolidated Standards of Reporting Trials (CONSORT) checklist for non-pharmacological studies (CONSORT-NPT). Four studies met the full inclusion criteria for systematic review. The trials included in the review examined group interventions based on the Cognitive behavioral therapy model against other therapeutic interventions or waiting list controls. In all four studies, group psychotherapy was an effective intervention for reducing depressive symptoms in persons with HIV in comparison to waiting list controls. The reported benefits from the group psychotherapy in comparison to active controls were less impressive. There were no statistically significant differences in drop outs at post treatments across group psychotherapy, wait list control, and other active interventions. The methodological quality of the studies varied. The quality of reporting of the studies was sub-optimal. The results of this systematic review support that group psychological interventions for depression in persons with HIV have a significant effect on depressive symptomatology. This review also indicates that group cognitive behavioral therapies are an acceptable psychological intervention for persons with HIV and comorbid depression.

The Architecture and Governance of Financial Supervision: Sources and Implications

AbstractWe compare the architecture and governance of financial supervision across countries. We find that countries where the supervisor is the central bank, or where it is independent of government, have more conservatively regulated financial systems. Nonperforming loans are lower in countries where the supervisor is independent, while capital ratios are higher where the central bank, rather than another agency of government, is the lead supervisor. At the same time, some measures of bank credit to the economy are significantly lower both where the supervisor is independent and where the lead supervisor is the central bank. Insofar as the same institutional arrangements that confer greater stability, such as higher capital ratios and lower nonperforming loans, also limit the provision of credit to the economy, countries face a tradeoff. That different countries have been moving in different directions in restructuring their supervisory arrangements should not be surprising insofar as they have different objectives for their financial sector.

Student Satisfaction with Models of Field Placement Supervision

Field placements provide social work students with the opportunity to integrate their classroom learning with the knowledge and skills used in various human service programs. The supervision structure that has most commonly been used is the intensive one-to-one, clinical teaching model. However, this model is being challenged by significant changes in educational and industry sectors, which have led to an increased use of alternative fieldwork structures and supervision arrangements, including task supervision, group supervision, external supervision, and shared supervisory arrangements. This study focuses on identifying models of supervision and student satisfaction with their learning experiences and the supervision received on placement. The study analysed responses to a questionnaire administered to 263 undergraduate social work students enrolled in three different campuses in Australia after they had completed their first or final field placement. The study identified that just over half of the placements used the traditional one student to one social work supervisor model. A number of “emerging” models were also identified, where two or more social workers were involved in the professional supervision of the student. High levels of dissatisfaction were reported by those students who received external social work supervision. Results suggest that students are more satisfied across all aspects of the placement where there is a strong on-site social work presence.

Central Bank Involvement in Macro-Prudential Oversight

This working paper addresses the institutional arrangements for the performance of macro-prudential oversight of the financial system in the European Union with focus on the functions of the central banks. The first section of the paper outlines the evolution of the EU’s supervisory arrangements which led to the establishment of the European Systemic Risk Board (ESRB) as the body responsible for EU macro-prudential oversight. This section also describes the ESRB’s institutional links to the European System of Central Banks (ESCB), which comprises the European Central Bank (ECB) and the national central banks (NCBs) of the EU Member States. In the second section, the paper describes the supporting role played by the ECB and the NCBs in the performance of the ESRB’s functions. Such support is provided at each stage of the macro-prudential oversight process, which comprises: (i) risk surveillance by the collection of market data; (ii) risk identification and evaluation by analytical reviews of the information collected; and (iii) risk mitigation by actions such as issuing risk warnings and recommendations. In the third section, the paper’s analysis of the institutional arrangements at the EU level is complemented by a review of the main current models for cooperation at the national level between national macro-prudential authorities and their respective NCBs. In conclusion, the paper points to the need to establish robust legal safeguards to ensure the effectiveness of central bank involvement in the performance of macro-prudential oversight of the financial system, including establishing reliable data collection channels and respect for central bank independence.

Greece and the Euro: The chronicle of an expected collapse

Ten years after Greece’s accession to EMU, the venture has proved to be almost a complete failure. Obviously, the country joined EMU disappointingly unprepared. After EMU accession, Greece failed to seek the necessary adaptations. Its economic policy was inconsistent with the economic logic and rules of the game of a monetary union. EMU did not in itself lead to the Greek crisis. Nevertheless, the supervisory arrangements clearly failed to work. Moreover, the unfolding of the crisis was assisted by EMU’s inherent weakness in managing asymmetric disturbances and the absence of early warning and rapid intervention mechanisms.

The Need for Revised Resolution Regimes and Supervisory Arrangements

In October 2010, having drawn crucial lessons fom the Financial Crisis which was triggered in 2007, and whose impact was still evident at the time, the Financial Stability Board Recommendations on systemically important financial institutions called for an assessment, on the basis of the BCBS Recommendations and the draft FSB Key Attributes of Effective Resolution Regimes (FSB Key Attributes), of national authorities’ capacity to resolve SIFIs under existing resolution regimes and of the legislative and other changes to national resolution regimes and policies needed to accomplish effective resolution. As well as attempting to highlight why much greater initiatives and efforts are required in relation to exit mechanisms for failing banks – that is, greater initiatives and efforts than prudential aspects of regulation which embrace capital adequacy procedures, this paper also draws attention to vital steps that could be taken at international level to make cross-border resolutions more effective.

Training new dental health providers in the United States

Introduction of dental therapists in the United States involves a wide range of issues including permissive governmental policymaking; determinations of their education, supervision, and deployment; their acceptance by dentists and the public; financing of their services; and, most fundamentally, their training. This contribution re-releases and updates the executive summary of an extensive report comparing therapists' training across five industrialized countries and comparing therapists' training to that of conventional U.S. dental providers. Literature reviews, web searches, key informant interviews, and program document reviews. Internationally, three-year training programs that dually qualify trainees as hygienists and therapists dominate. There are marked differences between non-US and US-based therapist training programs and between US-based programs. Reported goals of establishing dental therapists include expanding the availability of basic dental services to underserved disadvantaged subpopulations; potentially reducing costs of basic care; and enhancing the roles of dentists in providing the most sophisticated care, serving the most complex patients, and managing an expanded dental team. Criteria for establishing training programs include program length, supervisory arrangements, recruitment and incentives, deployment, educational costs, curriculum, oversight, and accreditation. International experiences can well inform US policy on training of dental therapists.

Distance to default, subordinated debt, and distress indicators in the banking industry*

AbstractThe recent financial crisis has highlighted the inadequacy of present supervisory arrangements to identify reliable ex‐ante indicators of banking distress. For a sample of US bank holding companies, we analyse the extent to which distance to default based on market data can be explained using accounting‐based indicators of risk. We show that a larger number of bank fundamentals help predict default for institutions that issue subordinated debt. For banks that issue sub‐debt, we find that higher charter values and low bank capitalizations further increase the power of bank fundamentals to predict default risk.

United States: Publication of Financial Sector Assessment Program Documentation: Technical Note on Consolidated Regulation and Supervision

This note reviews outgoing U.S. consolidated regulatory and supervisory arrangements and explores options to strengthen them. Although U.S. consolidated regulation and supervision span from the smallest financial groups to the largest and most complex, much effort is focused on the latter. This note addresses the basic statutory arrangements for consolidated regulation and supervision, as distinct from the actual exercise. It is stressed that, of all the U.S. regulatory bodies, it is the Federal Reserve that is best placed to bear the consolidated supervisory mandate.

Empowering the ECB to Supervise Banks: A Choice-Based Approach

The reform of bank supervision represents a significant institutional challenge for the European Union. This paper explores the merits of a choice-oriented approach under which individual Member states have the option to delegate prudential supervision of their largest banks to the European Central Bank, while retaining the right to re-assume such a role at a later date. Responsibilities, commitments and costs would be allocated by means of a binding arrangement with the ECB that can be tailored to Member states' specific circumstances. The proposal offered here is superior to both existing supervisory arrangements and proposed alternatives. Its adoption would also significantly reinforce the new, post financial crisis EU supervisory architecture.

: Euu (A Review of the Post-Crisis Proposals for Reforming the Institutional Structure of Financial Supervision in the United States, the United Kingdom, the European Union and in Korea)

Korean Abstract: 글로벌 금융위기 이후, 국제적으로는 물론 각국 국내적으로도 감독개혁이 진행 중이다. 개혁 논의는 내용상 감독실질의 개혁과 감독체계(감독지배구조)의 개혁으로 대별된다. 이 글은 특히 미국·영국·EU에서 진행 중인 국내적 차원의 감독체계 개혁론을 각각 분석·비교한다. 이들 나라(지역)의 정부(관련 당국)는 각기 자국의 사회·문화적 전통과 정치·경제적 상황에 적합한 감독모형의 선택과 거시건전성 감독방식의 설계를 위해 공개적으로 법률 및 제도 개혁을 적극 추진중이다. 한국은 어떠한가? 한은법 개정안이 제한적·정치적으로 논의되었을 뿐, 감독체계 개혁 논의 자체가 미미하다. 그러나 한국에서는 위기 훨씬 전부터 감독체계의 구조적 왜곡과 불량지배구조 문제가 방치되어 왔었다. 차제에 이 문제를 포함하여 감독체계 전반에 대한 재검토와 그에 따른 개혁이 시급하다. 이 글은 한은법 개정안 등 최근의 논의 경과를 검토한 후, 보다 근본적 감독체계개편이 절실한 이유를 조명하고, 금융감독 개혁을 설계·주도할 선진국형 민간위원회의 설치를 제안한다. English Abstract: In the aftermath of the global financial crisis, efforts to reform financial supervision have been made both globally and domestically. Discussions have been held concerning regulatory substance as well as regulatory governance which include the institutional structure of financial supervision. This paper reviews and compares such discussions on institutional structure that have evolved in the United States, the United Kingdom, and the European Union. Their discussions generally focus on the choice of the supervisory model and the design of the macro-prudential supervisory arrangement. In contrast, Korea has seen little or no such discussion except for some debate on amending the Bank of Korea Act. In fact, structural distortions and bad regulatory governance has prevailed here from around the time of the turn of the 21th century. Reviewing the financial supervisory system as a whole and reforming it accordingly is thus urgently called for. This paper reviews the recent debate on the Bank of Korea Act, and further proves the case for the comprehensive reform of the system of financial supervision in Korea. It also highlights the need to set up an inquiry, (along the lines of the) (favorably comparable to the) Wallis Inquiry of Australia in the mid-19990s, which, being made up exclusively of private-sector experts and scholars, will take the lead in pursuing that financial supervisory reform.

Lender of last resort policy: What reforms are necessary?

Abstract The Northern Rock bailout has raised concerns about the ability of current supervisory arrangements to deal with banking crises. This paper uses a formal model of a lender of last resort to derive policy implications regarding the optimal allocation of decision-making authority. Thereby, it contributes to the policy debate in the United Kingdom by proposing reforms to the current supervisory arrangements.

“Live” Supervision of Supervision: “Perpendicular” Interventions in Parallel Processes

In a unique supervisory arrangement, pre-doctoral psychology interns supervise master's level social work interns in a university counseling center setting. A supervision of supervision group (SOS group), which is conjointly led by a psychology intern supervisor and the social work intern supervisor, monitors and advances the professional development of the supervisors-in-training (s-i-ts) and indirectly facilitates the professional growth of the social work supervisees. The most dynamic aspect of the SOS group is the “live” supervision of the in vivo encounter between the psychology intern and social work supervisee. The identification of repetitive themes occurring in the therapeutic, supervisory, and supervision-of-supervision systems (parallel processes) provide the foundation for the development of interventions that disrupt rigid patterns. The interface of the therapeutic, supervisory, and SOS systems offer interventions that promote the growth and development of the psychology and social work interns. This approach is illustrated through theoretical discussion, methodological description, and case vignettes.

Empowering the ECB to Supervise Banks: A Choice-Based Approach

The reform of bank supervision represents one of the great institutional challenges for the European Union. The recent pattern of cross-border failures in supervision reflects the extent to which a better functioning system of supervision is critical for the safe operation of the banking system in the EU. Within this framework, the main institutional reforms currently being proposed are likely to fail. It is thus worth considering alternatives. This paper explores the merits of a choice-oriented approach under which individual Member states have the option to delegate prudential supervision of their largest banks to the European Central Bank, while still retaining the right to re-assume such a role at a later date. Responsibilities, commitments and costs would be allocated by means of a binding agreement with the ECB that can be tailored to Member states’ specific circumstances, to the extent permitted by supervisory coherence and equal treatment. The proposal offered here is superior to existing supervisory arrangements, and is likely to produce a more socially desirable outcome than the proposed alternatives.