PODCAST: Financial Regulation and Supervision – are they the same or different?


Author: Sarah Corley

We use the terms financial regulation and supervision sometimes interchangeably but in this podcast Nolwazi Hlophe and Sarah Corley unpick what their differences are, how they contribute to the central bank’s mandate of price and financial stability, who they oversee and what powers they have. It explores some of the key challenges that regulators and supervisors face, and how they are supporting innovation, market development and financial inclusion.


Three key takeaways from the discussion are:

  • Financial regulation and financial supervision are not the same thing; financial regulation informs the activities of financial supervision towards ensuring supervised financial institutions comply with regulations.
  • Data collection is major challenge for supervisors in many jurisdictions, this can be improved through effective and continued stakeholder engagement.
  • Supervisors play a key role in enabling financial innovation in their jurisdictions through creating an evidence base that informs forward looking policymaking and regulations.