The idea that central banks should be independent from government has gained wide acceptance in the past few decades. Experience has shown that political interference in monetary policy often has undesirable economic consequences. But policymakers are still reluctant to grant independence to the agencies that regulate and supervise the financial sector. One reason is the fear that regulators and supervisors, with their wide-ranging responsibilities and their power to penalize those who do not comply with regulations, could become a law unto themselves.