Banking on the Principles: Compliance with Basel Core Principles and Bank Soundness

This study finds that banks receive more favorable Moody's financial strength ratings in countries with better compliance with Basel Core Principles related to information provision. The results are robust to controlling for broad indexes of institutional quality, macroeconomic variables, sover...

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Main Authors:	Demirguc-Kunt, Asli, Detragiache, Enrica, Tressel, Thierry
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Financial Institutions and Services: Government Policy and Regulation G280 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160
Online Access:	http://hdl.handle.net/10986/5634

id	okr-10986-5634
recordtype	oai_dc
spelling	okr-10986-56342021-04-23T14:02:23Z Banking on the Principles: Compliance with Basel Core Principles and Bank Soundness Demirguc-Kunt, Asli Detragiache, Enrica Tressel, Thierry Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Financial Institutions and Services: Government Policy and Regulation G280 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 This study finds that banks receive more favorable Moody's financial strength ratings in countries with better compliance with Basel Core Principles related to information provision. The results are robust to controlling for broad indexes of institutional quality, macroeconomic variables, sovereign ratings, and reverse causality. Compliance with other Core Principles does not affect ratings robustly. Measuring bank soundness through Z-scores yields broadly similar results for advanced and emerging markets. Countries aiming to upgrade banking regulation and supervision should consider giving priority to information provision over other elements of the core principles. 2012-03-30T07:33:47Z 2012-03-30T07:33:47Z 2008 Journal Article Journal of Financial Intermediation 10429573 http://hdl.handle.net/10986/5634 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Financial Institutions and Services: Government Policy and Regulation G280 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160
spellingShingle	Banks Other Depository Institutions Micro Finance Institutions Mortgages G210 Financial Institutions and Services: Government Policy and Regulation G280 Economic Development: Financial Markets Saving and Capital Investment Corporate Finance and Governance O160 Demirguc-Kunt, Asli Detragiache, Enrica Tressel, Thierry Banking on the Principles: Compliance with Basel Core Principles and Bank Soundness
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	This study finds that banks receive more favorable Moody's financial strength ratings in countries with better compliance with Basel Core Principles related to information provision. The results are robust to controlling for broad indexes of institutional quality, macroeconomic variables, sovereign ratings, and reverse causality. Compliance with other Core Principles does not affect ratings robustly. Measuring bank soundness through Z-scores yields broadly similar results for advanced and emerging markets. Countries aiming to upgrade banking regulation and supervision should consider giving priority to information provision over other elements of the core principles.
format	Journal Article
author	Demirguc-Kunt, Asli Detragiache, Enrica Tressel, Thierry
author_facet	Demirguc-Kunt, Asli Detragiache, Enrica Tressel, Thierry
author_sort	Demirguc-Kunt, Asli
title	Banking on the Principles: Compliance with Basel Core Principles and Bank Soundness
title_short	Banking on the Principles: Compliance with Basel Core Principles and Bank Soundness
title_full	Banking on the Principles: Compliance with Basel Core Principles and Bank Soundness
title_fullStr	Banking on the Principles: Compliance with Basel Core Principles and Bank Soundness
title_full_unstemmed	Banking on the Principles: Compliance with Basel Core Principles and Bank Soundness
title_sort	banking on the principles: compliance with basel core principles and bank soundness
publishDate	2012
url	http://hdl.handle.net/10986/5634
_version_	1764395759101280256

Banking on the Principles: Compliance with Basel Core Principles and Bank Soundness

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