Banking on the principles: Compliance with Basel Core Principles and bank soundness
Enrica Detragiache () and
Thierry Tressel ()
Journal of Financial Intermediation, 2008, vol. 17, issue 4, 511-542
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.
Keywords: Bank; soundness; Regulation; and; supervision; Basel; Core; Principles (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (99) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
Working Paper: Banking on the Principles; Compliance with Basel Core Principles and Bank Soundness (2006)
Working Paper: Banking on the principles: compliance with Basel Core Principles and bank soundness (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:jfinin:v:17:y:2008:i:4:p:511-542
Access Statistics for this article
Journal of Financial Intermediation is currently edited by Elu von Thadden
More articles in Journal of Financial Intermediation from Elsevier
Bibliographic data for series maintained by Haili He ().