Banking regulations: do they matter for performance?
| Autor: | Ranjeeta Nayak |
|---|---|
| Rok vydání: | 2021 |
| Předmět: |
040101 forestry
International level Economics and Econometrics 050208 finance Financial performance business.industry Corporate governance 05 social sciences Accounting 04 agricultural and veterinary sciences 0502 economics and business Capital requirement Information disclosure 0401 agriculture forestry and fisheries Deposit insurance Business Finance Barriers to entry Risk management |
| Zdroj: | Journal of Banking Regulation. 22:261-274 |
| ISSN: | 1750-2071 1745-6452 |
| Popis: | This paper aims at highlighting the significance of banking regulations for the determination of bank performance (financial and risk management). From the World Bank data set, eight factors of regulatory guidelines (entry barriers, the permissibility of activities, deposit insurance scheme, capital requirement, information disclosure, supervision, external monitoring, and governance structure) across 129 countries are identified. The impact of each factor on bank performance is analyzed by applying multiple regression and stepwise regression models. The empirical findings indicate the positive impact of stringency of regulations regarding permissibility of activities and supervision on the financial performance of banks. Capital requirement stringency and external monitoring regulations negatively affect financial performance. The risk management effort of banks improves with the stringency of regulations regarding activities permitted, capital requirement, and external monitoring. All these factors influencing performance across heterogeneous banking system can pave the way towards the development of uniform global banking regulatory practices. Uniform global banking regulations can be an assured solution for the smooth functioning of banks at the international level. |
| Databáze: | OpenAIRE |
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