Article ID Journal Published Year Pages File Type
5089505 Journal of Banking & Finance 2012 16 Pages PDF
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.

► Analysis is based on data for some 200 banks from 21 OECD countries for 2002-2008. ► Our analysis is based on quantile regressions. ► Our measures for both concepts are constructed using factor analysis. ► We find that banking regulation and supervision has an effect on the risks of high-risk banks. ► But bank regulation and supervision do not have a significant effect on low-risk banks.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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