Motivated by recent public policy debates on the role of market discipline in banking stability, I examine the impact of greater bank disclosure in mitigating the likelihood of systemic banking crisis. In a cross sectional study of banking systems across 49 countries in the 90s, I find that banking crises are less likely in countries with financial reporting regimes characterized by (i) comprehensive disclosure (ii) informative disclosure, (iii) timely disclosure and (iv) more stringent auditing.
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Length: pages Date of creation: 01 Feb 2005 Date of revision: Handle: RePEc:wdi:papers:2005-748
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Thorsten Beck & Asli Demirguc-Kunt & Ross Levine, 2003.
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Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, 1998.
"Law and Finance,"
Journal of Political Economy,
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[Downloadable!] (restricted)
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Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer & Robert W. Vishny, 1996.
"Law and Finance,"
NBER Working Papers
5661, National Bureau of Economic Research, Inc.
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Marcel Canoy & Machiel van Dijk & Jan Lemmen & Ruud de Mooij & Juergen Weigand, .
"Competition and Stability in Banking,"
CPB Documents
15, CPB Netherlands Bureau for Economic Policy Analysis.
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