Macroeconomic impact of bank regulation and supervision: a cross-country investigation
Date
2014
Authors
Neyapti, B.
Dincer, N. N.
Advisor
Instructor
Source Title
Emerging Markets Finance and Trade
Print ISSN
1540-496X
Electronic ISSN
1558-0938
Publisher
Routledge
Volume
50
Issue
1
Pages
52 - 70
Language
English
Type
Article
Journal Title
Journal ISSN
Volume Title
Abstract
Bank regulation and supervision (RS) is a formal institutional mechanism that aims to reduce the adverse selection and moral hazard risks in the banking sector. This paper offers an empirical exploration of the relationship between banking-sector performance and RS using data on the legal quality of bank regulation and supervision. The main channels via which RS affects bank performance are considered to be depositor trust, investment mobilization, and borrower discipline. An event study of up to fifty-three countries provides robust evidence that RS has significant positive effects on bank deposits and investment rate and significant negative effects on nonperforming loans.
Course
Other identifiers
Book Title
Keywords
Bank performance, Bank regulation and supervision