The international Monetary Fund released a working paper exploring the relationship between banking sector performance and the quality of regulation and supervision as measured by compliance with the Basel Core Principles (BCP) for Effective Banking Supervision.
The report finds that higher compliance with the BCP is associated with lower non-Performing loans and lower net interest margin, suggesting that following the BCP creates a regulatory and supervisory environment that helps improve banking sector performance.
IMF paper: Does Compliance with Basel Core Principles Bring Any Measurable Benefits?
© International Monetary Fund
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