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This paper presents new and official survey information on bank regulations in 142 countries and makes comparisons with two earlier surveys. The data do not suggest that countries have primarily reformed their bank regulations for the better over the last decade. Following Basel guidelines many countries strengthened capital regulations and official supervisory agencies, but existing evidence suggests that these reforms will not improve bank stability or efficiency. While some countries have empowered private monitoring of banks, consistent with the third pillar of Basel II, there are many exceptions and reversals along this dimension.

Access to Finance --- Bank --- Bank regulation --- Banks --- Banks and Banking Reform --- Capital --- Croatian national bank --- Finance --- Finance and Financial Sector Development --- Financial institutions --- Financial systems --- Governments --- Supervisory agencies

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This paper examines the effect of Basel III implementation on the access to finance of small and medium-size enterprises in 32 emerging markets and developing economies. Analyzing rich, repeated cross-sectional data and a panel of matched firm-bank data in a difference-in-differences setting with sample selection adjustment, the authors find a short-term, moderately negative effect of Basel III on small and medium-size enterprises' access to financing. The results suggest that firms with access to bank credit prior to Basel III implementation could have been affected less than firms that were initially on the fringes of financial inclusion-firms with only a bank account. The paper fails to find any additional heterogeneous effects across firm size or age, bank capitalization or liquidity, or across countries that transitioned to Basel III from Basel II versus Basel 2.5. Overall, the initial conditions of the banking system as well as of complementary business and financial regulation can co-determine the size of short-term costs from the newly implemented global financial regulation in emerging markets and developing economies.

Bank Regulation --- Basel III --- Emerging Market Economies --- Finance and Financial Sector Development --- Financial Regulation --- Financial Regulation and Supervision --- Firm-Level Data --- Impact Evaluation --- Private Sector Development --- Small and Medium Size Enterprises --- Small And Medium-Sized Enterprises --- SME Finance

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This paper is about the importance of the information in Public Credit Registries (PCRs) for supporting and improving banking sector regulation and supervision, particularly in the light of the new approach embodied in Basel III. Against the backdrop of the financial crisis and the existence of information data gaps, the importance of complete, accurate and timely credit information in the financial system is evident. Both in normal times and during crises, authorities need a device that allows them to look at the universe of credits in a detailed and readily way. And more importantly, they need to develop tools that exploit as much as possible the information therein contained. PCR databases contain individual credit information on borrowers and their credits which makes it possible to implement advanced techniques that measure banks' credit risk exposure. It allows optimizing the prudential regulation ensuring that provisioning and capital requirements are properly calibrated to cover expected and unexpected losses respectively. It also permits validating banks' internal rating systems, performing stress tests and informing macroprudential surveillance. In this respect, it is envisioned that the existence of a PCR will be a key factor to enhance the supervision and regulation of the financial system. Furthermore, the extent, accuracy and availability of the information collected by the authorities will determine the usefulness of the PCR as part of their toolkit to monitor the potential vulnerabilities not only on a microprudential level, but also on a macroprudential one.

Access to Finance --- Bank Regulation --- Banking sector --- Banking supervision --- Bankruptcy and Resolution of Financial Distress --- Banks & Banking Reform --- Capital requirements --- Credit information --- Debt Markets --- Finance and Financial Sector Development --- Financial crisis --- Financial Intermediation --- Financial system --- Prudential regulation --- Public Credit --- Rating systems

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This paper studies whether compliance with the Basel Core Principles for Effective Banking Supervision (BCPs) improves bank soundness. The authors find a significant and positive relationship between bank soundness (measured with Moody's financial strength ratings) and compliance with principles related to information provision2. Specifically, countries that require banks to regularly and accurately report their financial data to regulators and market participants have sounder banks. This relationship is robust to controlling for broad indexes of institutional quality, macroeconomic variables, sovereign ratings, and reverse causality. Measuring soundness through Z-scores yields similar results. These findings emphasize the importance of transparency in making supervisory processes effective and strengthening market discipline. Countries aiming to upgrade banking regulation and supervision should consider giving priority to information provision over other elements of the core principles.

Banks and banking -- State supervision. --- Basil Core Principles. --- Electronic books. -- local. --- Finance --- Business & Economics --- Banking --- Banks and banking --- State supervision. --- Banks and Banking --- Finance: General --- General Financial Markets: Government Policy and Regulation --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Financial Institutions and Services: Government Policy and Regulation --- Financial services law & regulation --- Bank soundness --- Basel Core Principles --- Bank supervision --- Bank regulation --- State supervision --- Hong Kong Special Administrative Region, People's Republic of China

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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.

Banks and banking --- Risk management. --- Bank capital. --- Capital --- Insurance --- Management --- State supervision. --- Banks and Banking --- Econometrics --- Finance: General --- Industries: Financial Services --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- Financial Institutions and Services: Government Policy and Regulation --- General Financial Markets: Government Policy and Regulation --- Estimation --- Financial services law & regulation --- Finance --- Banking --- Econometrics & economic statistics --- Nonperforming loans --- Basel Core Principles --- Commercial banks --- Bank supervision --- Estimation techniques --- Financial institutions --- Financial regulation and supervision --- Bank regulation --- State supervision --- Loans --- Econometric models --- United States