04467oam 22010094 450 991078841520332120230828232701.01-4623-7703-31-4527-1078-31-283-51174-697866138241961-4519-0955-110.1596/1813-9450-3954(CKB)3360000000443413(EBL)3014457(SSID)ssj0000940064(PQKBManifestationID)11479994(PQKBTitleCode)TC0000940064(PQKBWorkID)10948641(PQKB)10748197(OCoLC)694141123(MiAaPQ)EBC3014457(IMF)WPIEE2006242(EXLCZ)99336000000044341320020129d2006 uf 0engur|n|---|||||txtccrBanking on the Principles : Compliance with Basel Core Principles and Bank Soundness /Enrica Detragiache, Thierry Tressel, Asli Demirgüç-KuntWashington, D.C. :International Monetary Fund,2006.1 online resource (35 p.)IMF Working Papers"October 2006."1-4518-6502-3 Includes bibliographical references.""Contents""; ""I. INTRODUCTION""; ""II. LITERATURE REVIEW""; ""III. METHODOLOGY AND DATA""; ""IV. THE RESULTS""; ""V. CONCLUSIONS""; ""References""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.IMF Working Papers; Working Paper ;No. 2006/242Banks and bankingState supervisionBanks and BankingimfFinance: GeneralimfGeneral Financial Markets: Government Policy and RegulationimfBanksimfDepository InstitutionsimfMicro Finance InstitutionsimfMortgagesimfFinancial Institutions and Services: Government Policy and RegulationimfFinancial services law & regulationimfBankingimfFinanceimfBank soundnessimfBasel Core PrinciplesimfBank supervisionimfBank regulationimfBanks and bankingimfState supervisionimfHong Kong Special Administrative Region, People's Republic of ChinaimfBanks and bankingState supervision.Banks and BankingFinance: GeneralGeneral Financial Markets: Government Policy and RegulationBanksDepository InstitutionsMicro Finance InstitutionsMortgagesFinancial Institutions and Services: Government Policy and RegulationFinancial services law & regulationBankingFinanceBank soundnessBasel Core PrinciplesBank supervisionBank regulationBanks and bankingState supervisionDetragiache Enrica120810Tressel Thierry1463685Demirgüç-Kunt Asli1421879IMF Institute.World Bank.DcWaIMFBOOK9910788415203321Banking on the Principles3802288UNINA