The Evolution and Impact of Bank Regulations

This paper reassesses what works in banking regulation based on the new World Bank survey (Survey IV) of bank regulation and supervision around world. The paper briefly presents new and official survey information on bank regulations in more than 125 countries, makes comparisons with earlier surveys since 1999, and assesses the relationship between changes in bank regulations and banking system performance. The data suggest that many countries made capital regulations more stringent and granted greater discretionary power to official supervisory agencies over the past 12 years, but most countries have not enhanced the ability and incentives of private investors to monitor banks rigorously -- and several have weakened such private monitoring incentives. Although it is difficult to draw causal inferences from these data, and while there are material cross-country differences in the evolution of regulatory reforms, existing evidence suggests that many countries are making counterproductive changes to their bank regulations by not enhancing the ability and incentives of private investors to scrutinize banks.

Bibliographic Details

Main Authors:	Barth, James R., Caprio, Gerard, Jr., Levine, Ross
Format:	Policy Research Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2012-12
Subjects:	ACCOUNTABILITY, ACCOUNTING, AMOUNT OF CAPITAL, ARREARS, ASSET DIVERSIFICATION, AUDITING, AUDITOR, BALANCE SHEET, BANK ACTIVITIES, BANK ACTIVITY, BANK ASSETS, BANK BORROWERS, BANK ENTRY, BANK FOR INTERNATIONAL SETTLEMENTS, BANK LOAN, BANK REGULATION, BANK REGULATIONS, BANK SUPERVISION, BANK SUPERVISORS, BANK VALUATION, BANKING ASSETS, BANKING INDUSTRY, BANKING REGULATION, BANKING SECTOR, BANKING SECTOR DEVELOPMENT, BANKING SYSTEM, BANKING SYSTEM DEVELOPMENT, BANKING SYSTEMS, BANKS, BRIBE, CAPITAL REGULATION, CAPITAL REQUIREMENTS, CD, CIVIL LAW, CONSOLIDATED FINANCIAL STATEMENTS, CORRUPT, CORRUPTION, CREDIT-RATING AGENCIES, CRISIS COUNTRIES, CROSS-BORDER BANKING, CURRENCY, DATA AVAILABILITY, DEPOSIT, DEPOSIT INSURANCE, DEPOSIT MONEY BANKS, DEPOSITOR, DEVELOPING COUNTRIES, DISCLOSURE REQUIREMENTS, DISCRETION, DOMESTIC BANK, DUMMY VARIABLES, ECONOMIC GROWTH, ENDOWMENTS, ENTRY REQUIREMENTS, FINANCIAL CONGLOMERATES, FINANCIAL DEVELOPMENT, FINANCIAL INFORMATION, FINANCIAL INSTITUTIONS, FINANCIAL INTERMEDIATION, FINANCIAL REGULATION, FINANCIAL SECTOR, FINANCIAL SECTOR ASSESSMENT, FINANCIAL SECTOR REFORM, FINANCIAL SERVICES, FINANCIAL STABILITY, FINANCIAL SYSTEMS, FOREIGN BANKS, FOREIGN ENTRY, FOREIGN LOANS, GOVERNMENT BANKS, GOVERNMENT OWNERSHIP, GOVERNMENT POLICY, GOVERNMENT SECURITIES, INEQUALITY, INSURANCE, INSURANCE ACTIVITIES, INTEGRITY, INTEREST INCOME, INTERNATIONAL BANK, INTERNATIONAL CREDIT, INTERNATIONAL ECONOMICS, INTERNATIONAL RATING AGENCIES, LAWS, LEGAL REQUIREMENTS, LIQUIDITY, LOAN CLASSIFICATION, MARKET STRUCTURE, MONETARY FUND, MORAL HAZARD, MUTUAL FUND, MUTUAL FUND INDUSTRY, NET INTEREST MARGIN, NONPERFORMING LOANS, OVERHEAD COSTS, POLITICAL SYSTEMS, POLITICIANS, PRIVATE INVESTORS, PRIVATE SECTOR DEVELOPMENT, RATING AGENCIES, REAL ESTATE, REAL ESTATE INVESTMENT, REGULATORS, REGULATORY AUTHORITIES, REGULATORY CAPITAL, REGULATORY ENVIRONMENT, REGULATORY POLICIES, REGULATORY REGIMES, REGULATORY REQUIREMENTS, REGULATORY RESTRICTION, REGULATORY RESTRICTIONS, REGULATORY SYSTEMS, RISK MANAGEMENT, SAVINGS, SECURITIES, SECURITIES ACTIVITIES, SHAREHOLDERS, SOLVENCY, SOURCE OF FUNDS, SOURCES OF FUNDS, SUBORDINATED DEBT, SUPERVISORY AGENCIES, SUPERVISORY AUTHORITIES, SUPERVISORY POWER, SUPERVISORY POWERS,
Online Access:	http://documents.worldbank.org/curated/en/2012/12/17060226/evolution-impact-bank-regulations http://hdl.handle.net/10986/12183
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