Disclosure Regulation in the Commercial Banking Industry: Lessons from the National Banking Era

55 Pages Posted: 4 Oct 2014 Last revised: 30 Sep 2016

See all articles by Joao Granja

Joao Granja

University of Chicago - Booth School of Business

Multiple version iconThere are 2 versions of this paper

Date Written: September 21, 2016

Abstract

I exploit variation in the adoption of disclosure and supervisory regulation across U.S. states to examine their impact on the development and stability of commercial banks. The empirical results suggest that the adoption of state-level requirements to report financial statements in local newspapers are associated with greater stability and development of commercial banks. I also examine which political constituencies influence the adoption of disclosure and supervisory regulation. I find that powerful landowners and small private banks are associated with late adoption of these regulations. These findings suggest that incumbent groups oppose disclosure rules because their passage threatens their private interests.

Suggested Citation

Granja, Joao, Disclosure Regulation in the Commercial Banking Industry: Lessons from the National Banking Era (September 21, 2016). Available at SSRN: https://ssrn.com/abstract=2504783 or http://dx.doi.org/10.2139/ssrn.2504783

Joao Granja (Contact Author)

University of Chicago - Booth School of Business ( email )

5807 South Woodlawn Avenue
Room 326
Chicago, IL 60637
United States

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