Basel Core Principles and Bank Soundness : Does Compliance Matter?

This paper studies whether compliance with the Basel Core Principles for effective banking supervision is associated with bank soundness. Using data for more than 3,000 banks in 86 countries, the authors find that neither the overall index of compl...

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Main Authors: Demirgüç-Kunt, Asli, Detragiache, Enrica
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091116091334
http://hdl.handle.net/10986/4321
id okr-10986-4321
recordtype oai_dc
spelling okr-10986-43212021-04-23T14:02:17Z Basel Core Principles and Bank Soundness : Does Compliance Matter? Demirgüç-Kunt, Asli Detragiache, Enrica ACCOUNTING ASSETS RATIOS AUTONOMY BALANCE SHEETS BANK ASSETS BANK BALANCE SHEETS BANK CREDIT BANK EQUITY BANK LOANS BANK PORTFOLIOS BANK RATINGS BANK REGULATION BANK RISK BANK RISK TAKING BANK SUPERVISION BANKING CRISES BANKING CRISIS BANKING LAWS BANKING SECTOR BANKING SECTOR DEVELOPMENT BANKING SUPERVISION BANKING SYSTEM BANKING SYSTEMS BANKS BEST PRACTICES CAPITAL ADEQUACY CAPITAL ADEQUACY RATIOS CAPITAL REGULATION CAPITAL STANDARDS CAPITALIZATION CENTRAL BANKS COMMERCIAL BANK COMMERCIAL BANKS CONFIDENCE CONSOLIDATED SUPERVISION CONTRACT ENFORCEMENT COOPERATIVE BANKS CORPORATE GOVERNANCE CORRUPTION COUNTRY COMPARISONS COUNTRY RISKS CREDIBILITY CREDIT EXPANSION CREDIT INSTITUTIONS CREDIT POLICIES CREDIT RATINGS CRIMINAL CURRENCY DECLARATION DEPOSIT DEPOSIT INSURANCE DEPOSITORS DEVELOPING COUNTRIES EMERGING MARKET EMERGING MARKET COUNTRIES EXCHANGE RATE EXTERNAL AUDITORS FINANCIAL CRISIS FINANCIAL DISTRESS FINANCIAL INSTITUTIONS FINANCIAL POLICIES FINANCIAL REGULATION FINANCIAL RISK FINANCIAL SERVICES FINANCIAL STABILITY FINANCIAL STATEMENTS FINANCIAL STRENGTH FINANCIAL STRENGTH RATING FINANCIAL SYSTEM FOREIGN BANKS GLOBAL BANKING HOST COUNTRY ILLIQUIDITY INFLATION INFLATION INDEX INFLATION RATE INFORMATION DISCLOSURE INTEGRITY INTEREST RATES INTERNATIONAL ACCOUNTING STANDARDS INTERNATIONAL BANK INTERNATIONAL FINANCIAL STATISTICS LAWS LEGAL FRAMEWORK LOAN LOAN SPREADS MACROECONOMIC CONTROL MACROECONOMIC ENVIRONMENT MACROECONOMIC POLICIES MACROECONOMIC VARIABLES MARKET STRUCTURE MONETARY FUND MORTGAGE MORTGAGE BANKS NONPERFORMING LOANS OPERATING COSTS OVERHEAD COSTS PORTFOLIOS PRIVATE CREDIT PRUDENTIAL REGULATIONS PRUDENTIAL SUPERVISION RATING AGENCIES REAL INTEREST REAL INTEREST RATES REGULATORY APPROACHES REGULATORY FRAMEWORKS REGULATORY GOVERNANCE REGULATORY STANDARDS RESERVES RETURN RETURN ON ASSETS RETURN ON EQUITY RETURNS RISK MANAGEMENT RISK TAKING RULE OF LAW SAFETY SAVINGS SAVINGS BANKS SECURITIZATION SHAREHOLDERS SMALL BANKS SOVEREIGN RATING SOVEREIGN RATINGS STORM SUPERVISION OF BANKS SUPERVISORY AGENCIES SUPERVISORY AGENCY SUPERVISORY AUTHORITIES SUPERVISORY FRAMEWORK SYSTEMIC RISK TREASURY This paper studies whether compliance with the Basel Core Principles for effective banking supervision is associated with bank soundness. Using data for more than 3,000 banks in 86 countries, the authors find that neither the overall index of compliance with the Basel Core Principles nor the individual components of the index are robustly associated with bank risk measured by Z-scores. The results of the analysis cast doubt on the usefulness of the Basel Core Principles in ensuring bank soundness. 2012-03-19T19:13:56Z 2012-03-19T19:13:56Z 2009-11-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091116091334 http://hdl.handle.net/10986/4321 English Policy Research Working Paper ; No. 5129 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ACCOUNTING
ASSETS RATIOS
AUTONOMY
BALANCE SHEETS
BANK ASSETS
BANK BALANCE SHEETS
BANK CREDIT
BANK EQUITY
BANK LOANS
BANK PORTFOLIOS
BANK RATINGS
BANK REGULATION
BANK RISK
BANK RISK TAKING
BANK SUPERVISION
BANKING CRISES
BANKING CRISIS
BANKING LAWS
BANKING SECTOR
BANKING SECTOR DEVELOPMENT
BANKING SUPERVISION
BANKING SYSTEM
BANKING SYSTEMS
BANKS
BEST PRACTICES
CAPITAL ADEQUACY
CAPITAL ADEQUACY RATIOS
CAPITAL REGULATION
CAPITAL STANDARDS
CAPITALIZATION
CENTRAL BANKS
COMMERCIAL BANK
COMMERCIAL BANKS
CONFIDENCE
CONSOLIDATED SUPERVISION
CONTRACT ENFORCEMENT
COOPERATIVE BANKS
CORPORATE GOVERNANCE
CORRUPTION
COUNTRY COMPARISONS
COUNTRY RISKS
CREDIBILITY
CREDIT EXPANSION
CREDIT INSTITUTIONS
CREDIT POLICIES
CREDIT RATINGS
CRIMINAL
CURRENCY
DECLARATION
DEPOSIT
DEPOSIT INSURANCE
DEPOSITORS
DEVELOPING COUNTRIES
EMERGING MARKET
EMERGING MARKET COUNTRIES
EXCHANGE RATE
EXTERNAL AUDITORS
FINANCIAL CRISIS
FINANCIAL DISTRESS
FINANCIAL INSTITUTIONS
FINANCIAL POLICIES
FINANCIAL REGULATION
FINANCIAL RISK
FINANCIAL SERVICES
FINANCIAL STABILITY
FINANCIAL STATEMENTS
FINANCIAL STRENGTH
FINANCIAL STRENGTH RATING
FINANCIAL SYSTEM
FOREIGN BANKS
GLOBAL BANKING
HOST COUNTRY
ILLIQUIDITY
INFLATION
INFLATION INDEX
INFLATION RATE
INFORMATION DISCLOSURE
INTEGRITY
INTEREST RATES
INTERNATIONAL ACCOUNTING STANDARDS
INTERNATIONAL BANK
INTERNATIONAL FINANCIAL STATISTICS
LAWS
LEGAL FRAMEWORK
LOAN
LOAN SPREADS
MACROECONOMIC CONTROL
MACROECONOMIC ENVIRONMENT
MACROECONOMIC POLICIES
MACROECONOMIC VARIABLES
MARKET STRUCTURE
MONETARY FUND
MORTGAGE
MORTGAGE BANKS
NONPERFORMING LOANS
OPERATING COSTS
OVERHEAD COSTS
PORTFOLIOS
PRIVATE CREDIT
PRUDENTIAL REGULATIONS
PRUDENTIAL SUPERVISION
RATING AGENCIES
REAL INTEREST
REAL INTEREST RATES
REGULATORY APPROACHES
REGULATORY FRAMEWORKS
REGULATORY GOVERNANCE
REGULATORY STANDARDS
RESERVES
RETURN
RETURN ON ASSETS
RETURN ON EQUITY
RETURNS
RISK MANAGEMENT
RISK TAKING
RULE OF LAW
SAFETY
SAVINGS
SAVINGS BANKS
SECURITIZATION
SHAREHOLDERS
SMALL BANKS
SOVEREIGN RATING
SOVEREIGN RATINGS
STORM
SUPERVISION OF BANKS
SUPERVISORY AGENCIES
SUPERVISORY AGENCY
SUPERVISORY AUTHORITIES
SUPERVISORY FRAMEWORK
SYSTEMIC RISK
TREASURY
spellingShingle ACCOUNTING
ASSETS RATIOS
AUTONOMY
BALANCE SHEETS
BANK ASSETS
BANK BALANCE SHEETS
BANK CREDIT
BANK EQUITY
BANK LOANS
BANK PORTFOLIOS
BANK RATINGS
BANK REGULATION
BANK RISK
BANK RISK TAKING
BANK SUPERVISION
BANKING CRISES
BANKING CRISIS
BANKING LAWS
BANKING SECTOR
BANKING SECTOR DEVELOPMENT
BANKING SUPERVISION
BANKING SYSTEM
BANKING SYSTEMS
BANKS
BEST PRACTICES
CAPITAL ADEQUACY
CAPITAL ADEQUACY RATIOS
CAPITAL REGULATION
CAPITAL STANDARDS
CAPITALIZATION
CENTRAL BANKS
COMMERCIAL BANK
COMMERCIAL BANKS
CONFIDENCE
CONSOLIDATED SUPERVISION
CONTRACT ENFORCEMENT
COOPERATIVE BANKS
CORPORATE GOVERNANCE
CORRUPTION
COUNTRY COMPARISONS
COUNTRY RISKS
CREDIBILITY
CREDIT EXPANSION
CREDIT INSTITUTIONS
CREDIT POLICIES
CREDIT RATINGS
CRIMINAL
CURRENCY
DECLARATION
DEPOSIT
DEPOSIT INSURANCE
DEPOSITORS
DEVELOPING COUNTRIES
EMERGING MARKET
EMERGING MARKET COUNTRIES
EXCHANGE RATE
EXTERNAL AUDITORS
FINANCIAL CRISIS
FINANCIAL DISTRESS
FINANCIAL INSTITUTIONS
FINANCIAL POLICIES
FINANCIAL REGULATION
FINANCIAL RISK
FINANCIAL SERVICES
FINANCIAL STABILITY
FINANCIAL STATEMENTS
FINANCIAL STRENGTH
FINANCIAL STRENGTH RATING
FINANCIAL SYSTEM
FOREIGN BANKS
GLOBAL BANKING
HOST COUNTRY
ILLIQUIDITY
INFLATION
INFLATION INDEX
INFLATION RATE
INFORMATION DISCLOSURE
INTEGRITY
INTEREST RATES
INTERNATIONAL ACCOUNTING STANDARDS
INTERNATIONAL BANK
INTERNATIONAL FINANCIAL STATISTICS
LAWS
LEGAL FRAMEWORK
LOAN
LOAN SPREADS
MACROECONOMIC CONTROL
MACROECONOMIC ENVIRONMENT
MACROECONOMIC POLICIES
MACROECONOMIC VARIABLES
MARKET STRUCTURE
MONETARY FUND
MORTGAGE
MORTGAGE BANKS
NONPERFORMING LOANS
OPERATING COSTS
OVERHEAD COSTS
PORTFOLIOS
PRIVATE CREDIT
PRUDENTIAL REGULATIONS
PRUDENTIAL SUPERVISION
RATING AGENCIES
REAL INTEREST
REAL INTEREST RATES
REGULATORY APPROACHES
REGULATORY FRAMEWORKS
REGULATORY GOVERNANCE
REGULATORY STANDARDS
RESERVES
RETURN
RETURN ON ASSETS
RETURN ON EQUITY
RETURNS
RISK MANAGEMENT
RISK TAKING
RULE OF LAW
SAFETY
SAVINGS
SAVINGS BANKS
SECURITIZATION
SHAREHOLDERS
SMALL BANKS
SOVEREIGN RATING
SOVEREIGN RATINGS
STORM
SUPERVISION OF BANKS
SUPERVISORY AGENCIES
SUPERVISORY AGENCY
SUPERVISORY AUTHORITIES
SUPERVISORY FRAMEWORK
SYSTEMIC RISK
TREASURY
Demirgüç-Kunt, Asli
Detragiache, Enrica
Basel Core Principles and Bank Soundness : Does Compliance Matter?
relation Policy Research Working Paper ; No. 5129
description This paper studies whether compliance with the Basel Core Principles for effective banking supervision is associated with bank soundness. Using data for more than 3,000 banks in 86 countries, the authors find that neither the overall index of compliance with the Basel Core Principles nor the individual components of the index are robustly associated with bank risk measured by Z-scores. The results of the analysis cast doubt on the usefulness of the Basel Core Principles in ensuring bank soundness.
format Publications & Research :: Policy Research Working Paper
author Demirgüç-Kunt, Asli
Detragiache, Enrica
author_facet Demirgüç-Kunt, Asli
Detragiache, Enrica
author_sort Demirgüç-Kunt, Asli
title Basel Core Principles and Bank Soundness : Does Compliance Matter?
title_short Basel Core Principles and Bank Soundness : Does Compliance Matter?
title_full Basel Core Principles and Bank Soundness : Does Compliance Matter?
title_fullStr Basel Core Principles and Bank Soundness : Does Compliance Matter?
title_full_unstemmed Basel Core Principles and Bank Soundness : Does Compliance Matter?
title_sort basel core principles and bank soundness : does compliance matter?
publishDate 2012
url http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20091116091334
http://hdl.handle.net/10986/4321
_version_ 1764390917397020672