{
  "title": "Does Regulatory Governance Matter for Financial System Stability? An Empirical Analysis",
  "publication": "IMF Working Papers, May 1, 2004",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/does-regulatory-governance-matter-for-financial-system-stability-an-empirical-analysis-17410",
  "canonical": "https://www.imf.org/en/publications/wp/issues/2016/12/30/does-regulatory-governance-matter-for-financial-system-stability-an-empirical-analysis-17410",
  "overlayPath": "/en/publications/wp/issues/2016/12/30/does-regulatory-governance-matter-for-financial-system-stability-an-empirical-analysis-17410/index.md",
  "summary": "This paper provides empirical evidence that the quality of regulatory governance-governance practices adopted by financial system regulators and supervisors-matters for financial system soundness.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- The paper provides empirical evidence that the quality of regulatory governance—governance practices adopted by financial system regulators and supervisors—matters for financial system soundness.\n- Indices of financial system soundness and regulatory governance are constructed based on country data collected from the Financial Sector Assessment Program (FSAP).\n- Regression results indicate that regulatory governance has a significant influence on financial system soundness, along with variables reflecting macroeconomic conditions, the structure of the banking system, and the quality of political institutions and public sector governance.\n- The results also indicate that good public sector governance amplifies the impact of regulatory governance on financial system soundness."
    },
    {
      "heading": "Data and Methods",
      "content": "- Data source: Financial Sector Assessment Program (FSAP) country data.\n- Constructed indices:\n  - Index of financial system soundness.\n  - Index of regulatory governance.\n- Empirical approach: Regression analysis to evaluate the influence of regulatory governance and other factors on financial system soundness."
    },
    {
      "heading": "Key Findings",
      "content": "- Regulatory governance has a significant influence on financial system soundness.\n- Other significant determinants of financial system soundness include:\n  - Macroeconomic conditions.\n  - Structure of the banking system.\n  - Quality of political institutions.\n  - Public sector governance.\n- Good public sector governance amplifies the positive impact of regulatory governance on financial system soundness."
    },
    {
      "heading": "Policy Implications",
      "content": "- Strengthening regulatory governance practices at financial system regulators and supervisors can improve financial system soundness.\n- Improvements in public sector governance can enhance the effectiveness of regulatory governance reforms.\n- Policy efforts should consider interactions between macroeconomic policy, banking system structure, political institutions, and governance reforms to bolster financial stability.\n\n---\n\n Content in this bundle\n\n- wp0489\n  - wp0489 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp0489 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/does-regulatory-governance-matter-for-financial-system-stability-an-empirical-analysis-17410"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/wp/issues/2016/12/30/does-regulatory-governance-matter-for-financial-system-stability-an-empirical-analysis-17410/index.md)",
    "[Structured JSON version](/en/publications/wp/issues/2016/12/30/does-regulatory-governance-matter-for-financial-system-stability-an-empirical-analysis-17410/index.json)",
    "[Bundle manifest](/en/publications/wp/issues/2016/12/30/does-regulatory-governance-matter-for-financial-system-stability-an-empirical-analysis-17410/bundle-manifest.json)",
    "Authors: Udaibir S Das, Marc G Quintyn, Kina Chenard",
    "Published: May 1, 2004",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451851311.001",
    "The paper provides empirical evidence that the quality of regulatory governance—governance practices adopted by financial system regulators and supervisors—matters for financial system soundness.",
    "Indices of financial system soundness and regulatory governance are constructed based on country data collected from the Financial Sector Assessment Program (FSAP).",
    "Regression results indicate that regulatory governance has a significant influence on financial system soundness, along with variables reflecting macroeconomic conditions, the structure of the banking system, and the quality of political institutions and public sector governance.",
    "The results also indicate that good public sector governance amplifies the impact of regulatory governance on financial system soundness.",
    "Data source: Financial Sector Assessment Program (FSAP) country data.",
    "Constructed indices:",
    "Empirical approach: Regression analysis to evaluate the influence of regulatory governance and other factors on financial system soundness.",
    "Regulatory governance has a significant influence on financial system soundness.",
    "Other significant determinants of financial system soundness include:",
    "Good public sector governance amplifies the positive impact of regulatory governance on financial system soundness.",
    "Strengthening regulatory governance practices at financial system regulators and supervisors can improve financial system soundness.",
    "Improvements in public sector governance can enhance the effectiveness of regulatory governance reforms.",
    "Policy efforts should consider interactions between macroeconomic policy, banking system structure, political institutions, and governance reforms to bolster financial stability.",
    "**_wp0489**"
  ],
  "related": [
    {
      "title": "_wp0489",
      "role": "document",
      "sourceUrl": "https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2004/_wp0489.pdf",
      "summary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2004/_wp0489.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2004/_wp0489.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/wp/issues/2016/12/30/does-regulatory-governance-matter-for-financial-system-stability-an-empirical-analysis-17410/index.md",
    "json": "/en/publications/wp/issues/2016/12/30/does-regulatory-governance-matter-for-financial-system-stability-an-empirical-analysis-17410/index.json",
    "bundleManifest": "/en/publications/wp/issues/2016/12/30/does-regulatory-governance-matter-for-financial-system-stability-an-empirical-analysis-17410/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-17T05:58:09.876Z"
}