Does Compliance with Basel Core Principles Bring Any Measurable Benefits?

Author/Editor:

Richard Podpiera

Publication Date:

November 1, 2004

Electronic Access:

Download PDF. 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:

We explore the relationship between banking sector performance and the quality of regulation and supervision as measured by compliance with the Basel Core Principles for Effective Banking Supervision (BCP). Using BCP assessment results for 65 countries and 1998-2002 panel data for other variables, we find a significant positive impact of higher compliance with BCP on banking sector performance, as measured by nonperforming loans and net interest margin, after controlling for the level of development of the economy and the financial system and macroeconomic and structural factors.

Series:

Working Paper No. 04/204

Subject:

English

Publication Date:

November 1, 2004

ISBN/ISSN:

9781451874532/1018-5941

Stock No:

WPIEA2042004

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

20

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