1.

Record Nr.

UNINA9910788415203321

Autore

Detragiache Enrica

Titolo

Banking on the Principles : : Compliance with Basel Core Principles and Bank Soundness / / Enrica Detragiache, Thierry Tressel, Asli Demirgüç-Kunt

Pubbl/distr/stampa

Washington, D.C. : , : International Monetary Fund, , 2006

ISBN

1-4623-7703-3

1-4527-1078-3

1-283-51174-6

9786613824196

1-4519-0955-1

Descrizione fisica

1 online resource (35 p.)

Collana

IMF Working Papers

Altri autori (Persone)

TresselThierry

Demirgüç-KuntAsli

Soggetti

Banks and banking - State supervision

Banks and Banking

Finance: General

General Financial Markets: Government Policy and Regulation

Banks

Depository Institutions

Micro Finance Institutions

Mortgages

Financial Institutions and Services: Government Policy and Regulation

Financial services law & regulation

Banking

Finance

Bank soundness

Basel Core Principles

Bank supervision

Bank regulation

Banks and banking

State supervision

Hong Kong Special Administrative Region, People's Republic of China

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa



Livello bibliografico

Monografia

Note generali

"October 2006."

Nota di bibliografia

Includes bibliographical references.

Nota di contenuto

""Contents""; ""I. INTRODUCTION""; ""II. LITERATURE REVIEW""; ""III. METHODOLOGY AND DATA""; ""IV. THE RESULTS""; ""V. CONCLUSIONS""; ""References""

Sommario/riassunto

This paper studies whether compliance with the Basel Core Principles for Effective Banking Supervision (BCPs) improves bank soundness. The authors find a significant and positive relationship between bank soundness (measured with Moody's financial strength ratings) and compliance with principles related to information provision2. Specifically, countries that require banks to regularly and accurately report their financial data to regulators and market participants have sounder banks. This relationship is robust to controlling for broad indexes of institutional quality, macroeconomic variables, sovereign ratings, and reverse causality. Measuring soundness through Z-scores yields similar results. These findings emphasize the importance of transparency in making supervisory processes effective and strengthening market discipline. Countries aiming to upgrade banking regulation and supervision should consider giving priority to information provision over other elements of the core principles.