Market Discipline and Banking System Transparency: Do We Need More Information?
15 Pages Posted: 31 Jan 2010
Date Written: November 30, 2009
Abstract
We make an attempt to discover the statistically significant relationship between market discipline and banking system transparency using the cross-country data (1990-2003). The dependent variables cover the quantitative and price-based disciplining. Measuring banking system transparency we use three groups of possible proxies: on the country, corporate and banking system levels. We found no statistically significant positive and stable influence of banking system transparency on market discipline. This result implies that measures aimed to increase transparency, not being accompanied with requirements related to information availability and/or interpretability, may be not efficient in reaching the goal of market discipline stimulation.
Keywords: Banks, Market Discipline, Transparency
JEL Classification: G21, O16
Suggested Citation: Suggested Citation
Here is the Coronavirus
related research on SSRN
Recommended Papers
-
Bank Runs Without Self-Fulfilling Prophecies
By Haibin Zhu
-
Foreign-Owned Banks: Implications for New Zealand's Financial Stability
By Leslie Hull
-
Does Ownership Affect a Firm's Performance and Default Risk in Jordan?
By Rami Zeitun and Gary Gang Tian
-
By Daniel Gros
-
Credit Constraints, Financial Liberalisation and Twin Crises
By Haibin Zhu
-
Impact of Ownership Structure on Bank Profitability in Nigeria
By Toni Aburime
-
Bank Disclosure Index: Global Assessment of Bank Disclosure Practices
By Rocco Huang
-
Core Banking Solutions, Comfort or Hurdle to Customer (With Special Reference to SBI)
By Vishal Geete
