A supervisor monitors certain transactions in the (worldwide; global) financial market that are not legally subject to its control by regulating corresponding transactions of the institutions under its supervision. – For example, many supervisors require very specific deterrent backing or other restrictive conditions for activities of the banks they supervise in offshore financial centers. Corresponding transactions by domestic banks become unprofitable in this way and are therefore refrained from. Indirectly, offshore financial centers can be partially dried up in this way, especially if the supervisory authorities cooperate closely internationally. – Another example is loans granted by banks to hedge funds. By imposing special supervisory regulations, the inflow of capital to hedge funds from the banking sector can be channeled. – See Banking Supervision, European, Banking Regulation Paradox, Financial Stability Forum, Financial Action Task Force on Money Laundering, Groupe de Contact, High risk countries, Regulatory pressure, Shadow banking, Shadow banking regulation. – Cf. 2004 Annual Report of BaFin, p. 32, p. 43 (overview of the various bodies).
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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