Banking Supervision: Quality and Governance

Author/Editor:

Alessandro Gambini ; Salim M. Darbar ; Marco Arnone

Publication Date:

April 1, 2007

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper examines the relationship between the quality of banking supervision and governance of the supervisory agency, based on assessments of the Basel Core Principles and the IMF Code on Transparency in Financial Policies, covering 116 and 53 countries, respectively, with 51 common to both. We find a positive correlation between the transparency of the supervisor and the effectiveness of banking supervision; moreover, better accountability and integrity practices of the banking supervisors are associated with higher independence, which in turn is associated with better compliance with the Basel Core Principles. These results are largely robust to different stages of financial development.

Series:

Working Paper No. 2007/082

Subject:

Bank supervision Banking Basel Core Principles Financial sector development Personal income

English

Publication Date:

April 1, 2007

ISBN/ISSN:

9781451866469/1018-5941

Stock No:

WPIEA2007082

Pages:

30

Please address any questions about this title to publications@imf.org