Towards a New Architecture for Financial regulation and Supervision in Europe

In this paper, we discuss different models for organizing financial market regulation and supervision in industrialized countries. We present a proposal for the reorganization of regulatory and supervisory agencies for the Euro-area financial sector, addressing the question of the roles that should be assigned to both the ECB and the national central banks. We also discuss how our proposal might work better than the hybrid solution emerging from the Lamfalussy framework.