Suchergebnisse

Purpose
– The purpose of this paper is to examine the impact of bank regulation and supervision on bank development, efficiency and fragility over the period of 1999-2011.


Design/methodology/approach
– The authors' approach is based on a multivariate difference-in-difference model which controls for potential endogeneity of the explanatory variables and unobservable country-specific effect. The paper investigates the changes of bank outcomes and a country's regulation and supervisory practices, in terms of capital regulation, supervisory power, private monitoring, entry into banking requirements, overall restrictions on bank activities and government ownership of banks in a sample of 53 countries with a total of 482 observations.


Findings
– Empirical results indicate that greater capital regulatory requirements reduce bank fragility, as measured by lower levels of non-performing loans but reduce bank efficiency, as measured by higher levels of net interest margin; supervisory practices that strengthen private sector monitoring of banks improve bank development, as measured by bank private credit as a share of gross domestic product; lower levels of non-performing loans are associated with greater enter-into-banking requirements and less restrictiveness on bank activities; and greater government ownership of banks is associated with both higher levels of net interest margin and higher levels of non-performing loans. Overall, the findings support Basel II's first and third pillars: capital requirements and private monitoring.


Originality/value
– This cross-country analysis provides evidence on which specific regulatory and supervisory practices work best in light of what was learned from the recent financial crisis.

This month's Geopolitics of Energy is devoted to a discussion of a concept called "geoenergeia", which is a neologism created by the authors, Ioannis Vidakis and Georgios Baltos. Noting that geo-economics, and of course, geopolitics, have been areas of scholarly research for a hundred years or more, the authors contend there should be a term, perhaps even a field of study, to describe the intersection of geography and energy. Thus, they have come up with "geoenergeia". The authors explain why a geoenergic point of view can be useful in deciphering contemporary world events and use the analytical tools of geoenergeia to shine light on several historical episodes, both from this century and the last.