Banking risk and regulation: Does one size fit all?

J.G. Klomp, J. de Haan

Research output: Contribution to journalArticleAcademicpeer-review

104 Citations (Scopus)

Abstract

Using data for more than 200 banks from 21 OECD countries for the period 2002–2008, we examine the impact of bank regulation and supervision on banking risk using quantile regressions. In contrast to most previous research, we find that banking regulation and supervision has an effect on the risks of high-risk banks. However, most measures for bank regulation and supervision do not have a significant effect on low-risk banks. As banking risk and bank regulation and supervision are multi-faceted concepts, our measures for both concepts are constructed using factor analysis
Original languageEnglish
Pages (from-to)3197-3212
JournalJournal of Banking and Finance
Volume36
Issue number12
DOIs
Publication statusPublished - 2012

Keywords

  • basel core principles
  • quantile regression
  • crises
  • soundness
  • inference
  • growth
  • models
  • system
  • number

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