Basel Core Principles and Bank Risk; Does Compliance Matter?
This paper studies whether compliance with the Basel Core Principles for effective banking supervision (BCPs) is associated with bank soundness. Using data for over 3,000 banks in 86countries, we find that neither the overall index of BCP compliance nor its individual components are robustly associated with bank risk measured by Z-scores. We also fail to find a relationship between BCP compliance and systemic risk measured by a system-wide Zscore.
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- Richard Podpiera, 2004.
"Does Compliance with Basel Core Principles Bring Any Measurable Benefits?,"
IMF Working Papers
04/204, International Monetary Fund.
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"Bankingon the Principles; Compliance with Basel Core Principles and Bank Soundness,"
IMF Working Papers
06/242, International Monetary Fund.
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