1.

Record Nr.

UNINA9910975150903321

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

9786613824196

9781462377039

1462377033

9781452710785

1452710783

9781283511742

1283511746

9781451909555

1451909551

Edizione

[1st ed.]

Descrizione fisica

1 online resource (35 p.)

Collana

IMF Working Papers

Altri autori (Persone)

Demirgüç-KuntAsli

TresselThierry

Soggetti

Banks and banking - State supervision

Bank regulation

Bank soundness

Bank supervision

Banking

Banks and Banking

Banks and banking

Banks

Basel Core Principles

Depository Institutions

Finance

Finance: General

Financial Institutions and Services: Government Policy and Regulation

Financial services law & regulation

General Financial Markets: Government Policy and Regulation

Micro Finance Institutions

Mortgages

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.