Bankingon the Principles: Compliance with Basel Core Principles and Bank Soundness
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 pri...
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Format: | Elektronisch E-Book |
Sprache: | English |
Veröffentlicht: |
Washington, D.C
International Monetary Fund
2006
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Schriftenreihe: | IMF Working Papers
Working Paper No. 06/242 |
Online-Zugang: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
Zusammenfassung: | 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 |
Beschreibung: | 1 Online-Ressource (33 p) |
ISBN: | 1451865023 9781451865028 |
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index_date | 2024-07-03T20:13:23Z |
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spelling | Detragiache, Enrica Verfasser aut Bankingon the Principles Compliance with Basel Core Principles and Bank Soundness Detragiache, Enrica Washington, D.C International Monetary Fund 2006 1 Online-Ressource (33 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers Working Paper No. 06/242 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 Online-Ausg Demirgüç-Kunt, Asli Sonstige oth Tressel, Thierry Sonstige oth http://elibrary.imf.org/view/IMF001/00638-9781451865028/00638-9781451865028/00638-9781451865028.xml Verlag URL des Erstveröffentlichers Volltext |
spellingShingle | Detragiache, Enrica Bankingon the Principles Compliance with Basel Core Principles and Bank Soundness |
title | Bankingon the Principles Compliance with Basel Core Principles and Bank Soundness |
title_auth | Bankingon the Principles Compliance with Basel Core Principles and Bank Soundness |
title_exact_search | Bankingon the Principles Compliance with Basel Core Principles and Bank Soundness |
title_exact_search_txtP | Bankingon the Principles Compliance with Basel Core Principles and Bank Soundness |
title_full | Bankingon the Principles Compliance with Basel Core Principles and Bank Soundness Detragiache, Enrica |
title_fullStr | Bankingon the Principles Compliance with Basel Core Principles and Bank Soundness Detragiache, Enrica |
title_full_unstemmed | Bankingon the Principles Compliance with Basel Core Principles and Bank Soundness Detragiache, Enrica |
title_short | Bankingon the Principles |
title_sort | bankingon the principles compliance with basel core principles and bank soundness |
title_sub | Compliance with Basel Core Principles and Bank Soundness |
url | http://elibrary.imf.org/view/IMF001/00638-9781451865028/00638-9781451865028/00638-9781451865028.xml |
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