Does Compliance with Basel Core Principles Bring Any Measurable Benefits?

21 Pages Posted: 9 Feb 2006

See all articles by Richard Podpiera

Richard Podpiera

International Monetary Fund (IMF); Charles University in Prague - CERGE-EI (Center for Economic Research and Graduate Education - Economics Institute)

Date Written: November 2004

Abstract

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.

Keywords: Basel Core Principles, banking, nonperforming loans, interest margin

JEL Classification: G21, G28

Suggested Citation

Podpiera, Richard, Does Compliance with Basel Core Principles Bring Any Measurable Benefits? (November 2004). IMF Working Paper No. 04/204, Available at SSRN: https://ssrn.com/abstract=879029

Richard Podpiera (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Charles University in Prague - CERGE-EI (Center for Economic Research and Graduate Education - Economics Institute) ( email )

P.O. Box 882
7 Politickych veznu
Prague 1, 111 21
Czech Republic
+42 02 240 05 242 (Phone)
+42 02 242 27 143 (Fax)

HOME PAGE: http://www.cerge-ei.cz

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
243
Abstract Views
1,359
rank
137,758
PlumX Metrics