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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Bibliographic Details
Main Author: Detragiache, Enrica
Other Authors: Demirgüç-Kunt, Aslı, 1961-, Tressel, Thierry
Format: Book
Language:English
Published: Washington, D.C. : International Monetary Fund, 2006
Series:IMF Working Papers ; Working Paper No. 06/242
IMF eLibrary
Subjects:
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520 3 |a 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 
588 |a Description based on print version record 
650 4 |a Bank assets 
650 4 |a Bank balance sheet 
650 4 |a Bank crisis 
650 4 |a Bank distress 
650 4 |a Bank equity 
650 4 |a Bank fragility 
650 4 |a Bank insolvencies 
650 4 |a Bank loans 
650 4 |a Bank management 
650 4 |a Bank market discipline 
650 4 |a Bank market 
650 4 |a Bank ownership 
650 4 |a Bank performance 
650 4 |a Bank portfolios 
650 4 |a Bank rating 
650 4 |a Bank ratings 
650 4 |a Bank regulation 
650 4 |a Bank regulators 
650 4 |a Bank size 
650 4 |a Bank solvency 
650 4 |a Bank soundness 
650 4 |a Bank stability 
650 4 |a Bank stock 
650 4 |a Bank supervision 
650 4 |a Bank supervisors 
650 4 |a Banking crises 
650 4 |a Banking industry 
650 4 |a Banking institutions 
650 4 |a Banking laws 
650 4 |a Banking license 
650 4 |a Banking market 
650 4 |a Banking regulation 
650 4 |a Banking sector fragility 
650 4 |a Banking sector 
650 4 |a Banking supervision 
650 4 |a Banking supervisors 
650 4 |a Banking supervisory agency 
650 4 |a Banking system 
650 4 |a Banking systems 
650 4 |a Banking 
650 4 |a Banks 
650 4 |a Basel Core Principles 
650 4 |a Capital adequacy 
650 4 |a Capital regulation 
650 4 |a Confidence interval 
650 4 |a Confidence intervals 
650 4 |a Consolidated supervision 
650 4 |a Correlation 
650 4 |a Correlations 
650 4 |a Deposit insurance 
650 4 |a Descriptive statistics 
650 4 |a Dummy variable 
650 4 |a Dummy variables 
650 4 |a Empirical model 
650 4 |a Explanatory power 
650 4 |a Financial statistics 
650 4 |a Financial strength 
650 4 |a Government Policy and Regulation 
650 4 |a Income statement 
650 4 |a Instrumental variables 
650 4 |a Internal control 
650 4 |a Internal management information 
650 4 |a Logarithm 
650 4 |a Measurement error 
650 4 |a Mortgages 
650 4 |a Numerical values 
650 4 |a Other Depository Institutions 
650 4 |a Outliers 
650 4 |a Prudential regulation 
650 4 |a Prudential requirement 
650 4 |a Return on assets 
650 4 |a Return on equity 
650 4 |a Sample mean 
650 4 |a Sample size 
650 4 |a Standard deviation 
650 4 |a Standard deviations 
650 4 |a Standard error 
650 4 |a Standard errors 
650 4 |a State owned bank 
650 4 |a Statistic 
650 4 |a Statistical significance 
650 4 |a Statistics 
650 4 |a Subordinated debt 
650 4 |a Survey 
650 4 |a Time series 
651 4 |a Bahrain 
651 4 |a Bulgaria 
651 4 |a Canada 
651 4 |a France 
651 4 |a Grenada 
651 4 |a Japan 
651 4 |a Sweden 
651 4 |a United Kingdom 
651 4 |a United States 
700 1 |a Demirgüç-Kunt, Aslı,  |d 1961- 
700 1 |a Detragiache, Enrica 
700 1 |a Tressel, Thierry 
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830 0 |a IMF Working Papers ;  |v Working Paper No. 06/242 
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