Download or read book Regulations Supervision and Banks Cost and Profit Efficiency Around the World written by Fotios Pasiouras and published by . This book was released on 2009 with total page 57 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper uses stochastic frontier analysis and Tobit regressions to provide international evidence on the impact of regulatory, supervision and environmental factors on bank efficiency. Our contribution is twofold. First, we use a newly constructed database of 3,086 observations from 677 publicly quoted commercial banks operating in 88 countries to provide cross-country evidence on the determinants of banks' cost and profit efficiency during the period 2000-2004. Second, we utilise the new database of the World Bank (WB), developed by Barth et al. (2004b), to investigate the impact of a broad range of regulatory and supervision measures, including capital requirements, restrictions on bank activities, private monitoring, official supervisory power of the authorities, and deposit insurance. Our results suggest a robust association of some of these measures with bank efficiency, despite being marginal in their impact compared to the influence of bank level capitalisation. We also reveal, in this context, some similarities, and differences in the determinants of cost and profit efficiency, with plausible effects of the impact of the conditioning environmental factors on bank efficiency.
Download or read book Banking Regulations Cost and Profit Efficiency written by Fotios Pasiouras and published by . This book was released on 2012 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper uses stochastic frontier analysis to provide international evidence on the impact of the regulatory and supervision framework on bank efficiency. Our dataset consists of 2,853 observations from 615 publicly quoted commercial banks operating in 74 countries during the period 2000-2004. We investigate the impact of regulations related to restrictions on bank activities and the three pillars of Basel II on cost and profit efficiency of banks, while controlling for other country-specific characteristics. Our results suggest that regulations and incentives that enhance market discipline, and higher supervisory power of the authorities, increase both cost and profit efficiency. Stricter capital requirements have a positive impact on cost efficiency but negative impact on profit efficiency. We observe the opposite effect in the case of restrictions on bank activities, with higher restrictions having a negative influence on cost efficiency but positive influence on profit efficiency.
Download or read book The Regulation and Supervision of Banks Around the World written by James R. Barth and published by World Bank Publications. This book was released on 2001 with total page 92 pages. Available in PDF, EPUB and Kindle. Book excerpt: This new and comprehensive database on the regulation and supervision of banks in 107 countries should better inform advice about bank ewgulation and supervision and lower the marginal cost of empirical research.
Download or read book The regulation and supervision of banks around the world written by James R. Barth and published by . This book was released on 2001 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This new and comprehensive database on the regulation and supervision of banks in 107 countries should better inform advice about bank ewgulation and supervision and lower the marginal cost of empirical research.
Download or read book Global Bank Regulation written by Heidi Mandanis Schooner and published by Academic Press. This book was released on 2009-11-24 with total page 353 pages. Available in PDF, EPUB and Kindle. Book excerpt: Global Bank Regulation: Principles and Policies covers the global regulation of financial institutions. It integrates theories, history, and policy debates, thereby providing a strategic approach to understanding global policy principles and banking. The book features definitions of the policy principles of capital regularization, the main justifications for prudent regulation of banks, the characteristics of tools used regulate firms that operate across all time zones, and a discussion regarding the 2007-2009 financial crises and the generation of international standards of financial institution regulation. The first four chapters of the book offer justification for the strict regulation of banks and discuss the importance of financial safety. The next chapters describe in greater detail the main policy networks and standard setting bodies responsible for policy development. They also provide information about bank licensing requirements, leading jurisdictions, and bank ownership and affiliations. The last three chapters of the book present a thorough examination of bank capital regulation, which is one of the most important areas in international banking. The text aims to provide information to all economics students, as well as non-experts and experts interested in the history, policy development, and theory of international banking regulation. Defines the over-arching policy principles of capital regulation Explores main justifications for the prudent regulation of banks Discusses the 2007-2009 financial crisis and the next generation of international standards of financial institution regulation Examines tools for ensuring the adequate supervision of a firm that operates across all time zones
Download or read book Globalization of Financial Institutions written by Allen N. Berger and published by . This book was released on 1999 with total page 130 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Regulation and Supervision of Banks Around the World a New Database written by Hiau Looi Kee and published by . This book was released on 2017 with total page 92 pages. Available in PDF, EPUB and Kindle. Book excerpt: International consultants on bank regulation, and supervision for developing countries, often base their advice on how their home country does things, for lack of information on practice in other countries. Recommendations for reform have tended to be shaped by bias rather than facts. To better inform advice about bank regulation, and supervision, and to lower the marginal cost of empirical research, the authors present, and discuss a new, and comprehensive database on the regulation, and supervision of banks in a hundred and seven countries. The data, based on surveys sent to national bank regulatory, supervisory authorities, are now available to researchers, and policymakers around the world. The data cover such aspects of banking as entry requirements, ownership restrictions, capital requirements, activity restrictions, external auditing requirements, characteristics of deposit insurance schemes, loan classification and provisioning requirements, accounting and disclosure requirements, troubled bank resolution actions, and (uniquely) the quality of supervisory personnel, and their actions. The database permits users to learn how banks are currently regulated, and supervised, and about bank structures, and deposit insurance schemes, for a broad cross-section of countries. In addition to describing the data, the authors show how variables ay be grouped, and aggregated. They also show some simple correlations among selected variables. In a comparison paper ( quot;Bank regulation and supervision: What works bestquot; ) studying the relationship between differences in bank regulation and supervision, and bank performance and stability, they conclude that: 1) Countries with policies that promote private monitoring of banks, have better bank performance, and more stability. Countries with more generous deposit insurance schemes tend to have poorer bank performance, and more bank fragility. 2) Diversification of income streams, and loan portfolios - by not restricting bank activities - also tends to improve performance, and stability. (This works best when an active securities market exists). Countries in which banks are encouraged to diversify their portfolios, domestically and internationally, suffer fewer crisis.
Download or read book The Regulation and Supervision of Banks around the World written by Levine and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Commercial Banking written by Christopher Gan and published by MDPI. This book was released on 2021-09-03 with total page 142 pages. Available in PDF, EPUB and Kindle. Book excerpt: The existence of financial intermediaries is arguably an artifact of information asymmetry. Beyond simple financial transactions, financial intermediation provides a mechanism for information transmission, which can reduce the degree of information asymmetry and consequently increase market efficiency. During the process of information transmission, the bank is able to provide unique services in the production and exchange of information. Therefore, banks have comparative advantages in information production, transmission, and utilisation. This book provides an overview of commercial banking and includes empirical methods in banking such risk and bank performance, capital regulation, bank competition and foreign bank entry, bank regulation on bank performance, and capital adequacy and deposit insurance.
Download or read book Financial Regulation written by Charles Goodhart and published by Routledge. This book was released on 2013-04-15 with total page 274 pages. Available in PDF, EPUB and Kindle. Book excerpt: Financial Regulation presents an important restatement of the purposes and objectives of financial regulation. The authors provide details and data on the scale, nature and costs of regulatory problems around the world, and look at what sort of countries and sectors require special attention and policies. Key topics covered include: * the need to recast the form of regulation * incentive structures for financial regulation * proportionality * new techniques for risk management * regulation in emerging countries * crisis management * prospects for financial regulation in the future.
Download or read book Governmental Supervision of Banking Throughout the World written by Maurice Louis Muhleman and published by . This book was released on 1911 with total page 120 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Prudential Regulation and Banking Supervision written by Vincent P. Polizatto and published by World Bank Publications. This book was released on 1990 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: To establish an effective program of banking supervision and prudential regulation, the public policy role of bank supervision must be clearly defined and understood and actions taken along several parallel tracks to strengthen the bank supervisory process, the legal framework, accounting and auditing, and the institutions themselves.
Download or read book Banking on the Principles written by Asl? Demirgüç-Kunt and published by World Bank Publications. This book was released on 2006 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: "This paper studies whether compliance with the Basel Core Principles for Effective Banking Supervision (BCP) improves bank soundness. BCP compliance assessments provide a unique source of information about the quality of bank supervision and regulation around the world. The authors find a significant and positive relationship between bank soundness (measured with Moody's financial strength ratings) and compliance with principles related to information provision. Specifically, countries that require banks to report regularly and accurately their financial data to regulators and market participants have sounder banks. This relationship is robust to controlling for broad indexes of institutional quality, macroeconomic variables, sovereign ratings, as well as reverse causality. Measuring soundness through z-scores yields similar results. The findings emphasize the importance of transparency in making supervisory processes effective and strengthening market discipline. Countries aiming to upgrade banking regulation and supervision should consider giving priority to information provision over other elements of the Core Principles. "--World Bank web site.
Download or read book Research Handbook on International Banking and Governance written by James R. Barth and published by Edward Elgar Publishing. This book was released on 2012-01-01 with total page 767 pages. Available in PDF, EPUB and Kindle. Book excerpt: The recent financial crisis has stimulated much debate on the governance of financial institutions, as well as research on the effects of governance arrangements on risk-taking, performance and financial institutions more generally. Furthermore, researchers are asking how regulation, legislation, politics and other factors influence the governance of financial institutions and their behavior in different dimensions. The specially commissioned contributions featured in this timely Handbook confront these complex issues. The contributors – top international scholars from finance, law and business – explore the role of governance, both internal and external, in explaining risk-taking and other aspects of the behavior of financial institutions. Additionally, they discuss market and policy features affecting objectives and quality of governance. The chapters provide in-depth analysis of factors such as: ownership, efficiency and stability; market discipline; compensation and performance; social responsibility; and governance in non-bank financial institutions. Only through this kind of rigorous examination can one hope to implement the financial reforms necessary and sufficient to reduce the likelihood and severity of future crises. Bringing the reader to the frontier of research on governance of financial institutions, this volume is sure to inspire future research in scholars and students of financial institutions, governance and banking as well as all those involved with private financial institutions and public regulatory and supervisory authorities.
Download or read book Banking Systems Around the Globe written by James R. Barth and published by World Bank Publications. This book was released on 2000 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt: Empirical results highlight the downside of imposing certain regulatory restrictions on commercial bank activities. Regulations that restrict banks' ability to engage in securities activities and to own nonfinancial firms are closely associated with more instability in the banking sector, and keeping commercial banks from engaging in investment banking, insurance, and real estate activities does not appear to produce positive benefits.
Download or read book Impact of Banking Supervision on the Cost Efficiency of Banks An Example of Five Asian Developing Countries written by Altankhuyag Dash and published by . This book was released on 2014 with total page 75 pages. Available in PDF, EPUB and Kindle. Book excerpt: The main purpose of banking supervision is to ensure stable operation of banks, minimize the risk for the stability of finance system, increase banking efficiency and promote competitiveness. However the question is whether banking supervision can benefit or damage banking efficiency. And how does banking supervision affect banking efficiency? This paper uses the stochastic frontier approach (SFA) of Battese and Coelli (1995)and stochastic metafrontier function (SMF) of Huang et al. (2012) to explore different impacts of the Financial Regulation on cost efficiency of banking industry in India, Thailand, Bangladesh, Malaysia and Mongolia. This study found out that related supervision policies is necessary but not necessary be able to benefit cost efficiency. According to the analysis of inefficiency model, capital regulation can lower the cost efficiency of banking in India, Thailand and Mongolia. However, the results are opposite for Bangladesh and Malaysia, the cost efficiency increase with government financial supervision because they avoid high risk investment activities. In the second stage, estimated SMF under meta-frontier cost function of the five countries, for the banking supervision, no matter whether it is TGR or MCE, Indian banks has the best results of 0.7527and 0.6715 respectively. Thailand has the lowest TGR value of 0.4608. Malaysia has the lowest MCE value of 0.3531; and Tobit regression consistency indicated that an increase in the strength of legal right will increase MCE and TGR; but credit depth information will increase bank's total cost, and then decrease their cost efficiency. The result shows that higher minimum regulatory capital increase MCE, TGR, and CE is consistent with the hypothesis raised by the moral hazard approach (Mester, 1996). However, minimum capital entry requirement and MCE, TGR, and CE are negatively correlated, statistically insignificant.
Download or read book Bank Regulations are Changing for Better Or Worse written by J. R. Barth, G. Caprio, Jr., &r. Levine and published by World Bank Publications. This book was released on 2008 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: This paper presents new and official survey information on bank regulations in 142 countries and makes comparisons with two earlier surveys. The data do not suggest that countries have primarily reformed their bank regulations for the better over the last decade. Following Basel guidelines many countries strengthened capital regulations and official supervisory agencies, but existing evidence suggests that these reforms will not improve bank stability or efficiency. While some countries have empowered private monitoring of banks, consistent with the third pillar of Basel II, there are many exceptions and reversals along this dimension.
