Basel Core Principles and bank soundness: Does compliance matter?
AbstractThis paper studies whether compliance with the Basel Core Principles for effective banking supervision (BCPs) is associated with bank soundness. Using data for over 3000 banks in 86 countries, we find that neither the overall index of BCP compliance nor its individual components are robustly associated with bank risk measured by individual bank Z-scores. We also fail to find a relationship between BCP compliance and systemic risk measured by a system-wide Z-score.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Financial Stability.
Volume (Year): 7 (2011)
Issue (Month): 4 (December)
Contact details of provider:
Web page: http://www.elsevier.com/locate/jfstabil
Bank soundness Regulation and supervision Basel core principles;
Other versions of this item:
- Demirguc-Kunt, Asli & Detragiache, Enrica, 2009. "Basel core principles and bank soundness : does compliance matter ?," Policy Research Working Paper Series 5129, The World Bank.
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