The Impact of Pillar 3 Disclosure Requirements on Bank Safety

Autor:	Jukka Vauhkonen
Rok vydání:	2011
Předmět:	Finance Economics and Econometrics Hardware_MEMORYSTRUCTURES business.industry Moral hazard Basel II Market discipline Operational risk Accounting Risk-weighted asset Management system Capital requirement business Financial services
Zdroj:	Journal of Financial Services Research. 41:37-49
ISSN:	1573-0735 0920-8550
DOI:	10.1007/s10693-011-0107-x
Popis:	We consider the impact of a mandatory information disclosure on bank safety in a spatial model of banking competition, in which a bank’s probability of success depends on the quality of its risk measurement and management systems. Under Basel capital requirements, this quality is at least partially disclosed to market participants by the Pillar 3 disclosures. We show that the regulator can improve the safety of the banking system by tightening the disclosure requirements. Furthermore, the stricter the disclosure requirements are the bigger is a positive impact of an increase in capital requirements on bank safety.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::af792b2b009688ae02e41ceb50fbb0bf https://doi.org/10.1007/s10693-011-0107-x Zobrazit plný text záznamu Full text from SpringerLink