Basel Core Principles and Bank Risk; Does Compliance Matter?

This paper studies whether compliance with the Basel Core Principles for effective banking supervision (BCPs) is associated with bank soundness. Using data for over 3,000 banks in 86countries, we find that neither the overall index of BCP compliance nor its individual components are robustly associated with bank risk measured by Z-scores. We also fail to find a relationship between BCP compliance and systemic risk measured by a system-wide Zscore.

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Year of publication:	2010-03-01
Authors:	Demirgüç-Kunt, Asli ; Detragiache, Enrica
Institutions:	International Monetary Fund (IMF)
Subject:	Bank soundness \| Basel Core Principles \| Bank reforms \| Bank supervision \| Banks \| Credit risk \| Financial risk \| regulation \| banking \| standards \| bank risk \| regulations \| banking supervision \| banking system \| financial strength \| bank regulation \| standards and codes \| capital regulation \| bank performance \| bank licensing \| banking sector \| consolidated supervision \| bank assets \| banking crisis \| return on equity \| capital adequacy \| return on assets \| global standard \| bank management \| banking crises \| regulatory standards \| international accounting standards \| banking sector development \| bank loans \| bank balance sheets \| banking systems \| bank portfolios \| bank risk taking \| internal control \| bank equity \| banking license \| bank governance \| bank data \| bank regulators \| bank ratings \| bank credit \| prudential requirement \| banking laws \| bank activities \| banking system fragility \| bank stability \| global standards \| financial strength rating

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Extent:	application/pdf
Series:	IMF Working Papers.
Type of publication:	Book / Working Paper
Language:	English
Notes:	The text is part of a series IMF Working Papers Number 10/81 2 pages long
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008470385