Financial System Standards and Financial Stability

Financial System Standards and Financial Stability PDF

Author: Mr.Dewitt Marston

Publisher: International Monetary Fund

Published: 2001-05-01

Total Pages: 36

ISBN-13: 1451964749

DOWNLOAD EBOOK →

The relationship between the observance of financial system standards and financial stability is complex owing to the multitude of macroeconomic and structural factors affecting stability. Therefore, assessments of standards in terms of technical criteria for compliance needs to be reinforced with additional information on other factors affecting risks in order to assess financial stability. Preliminary evidence from country data on observance of Basel Core Principles (BCPs) suggests that indicators of credit risk and bank soundness are primarily influenced by macroeconomic and macroprudential factors and that the direct influence of compliance with Basel Core Principles on credit risk and soundness is insignificant. BCP compliance could, however, influence risk and soundness indirectly through its influence on the impact of other macro variables.

Financial System Standards and Financial Stability: the Case of Basel Core Principles

Financial System Standards and Financial Stability: the Case of Basel Core Principles PDF

Author: David Marston

Publisher:

Published: 2001-05-01

Total Pages: 36

ISBN-13: 9781283554459

DOWNLOAD EBOOK →

The relationship between the observance of financial system standards and financial stability is complex owing to the multitude of macroeconomic and structural factors affecting stability. Therefore, assessments of standards in terms of technical criteria for compliance needs to be reinforced with additional information on other factors affecting risks in order to assess financial stability. Preliminary evidence from country data on observance of Basel Core Principles (BCPs) suggests that indicators of credit risk and bank soundness are primarily influenced by macroeconomic and macroprudential factors and that the direct influence of compliance with Basel Core Principles on credit risk and soundness is insignificant. BCP compliance could, however, influence risk and soundness indirectly through its influence on the impact of other macro variables.

Financial System Standards and Financial Stability

Financial System Standards and Financial Stability PDF

Author: V. Sundararajan

Publisher:

Published: 2006

Total Pages: 35

ISBN-13:

DOWNLOAD EBOOK →

The relationship between the observance of financial system standards and financial stability is complex owing to the multitude of macroeconomic and structural factors affecting stability. Assessments of standards need to be interpreted using information on other factors affecting risks. Preliminary evidence from data on observance of Basel Core Principles (BCP) suggests that credit risk and bank soundness are primarily influenced by macroeconomic and macroprudential factors and that direct influence of compliance with BCP on credit risk and soundness is insignificant. Compliance could, however, have a sizable indirect influence through its impact on the marginal effect on soundness of macro factors.

Basel Compliance and Financial Stability

Basel Compliance and Financial Stability PDF

Author: Mohammad Bitar

Publisher: International Monetary Fund

Published: 2017-07-18

Total Pages: 40

ISBN-13: 1484309219

DOWNLOAD EBOOK →

The paper provides robust evidence that compliance with Basel Core Principles (BCPs) has a strong positive effect on the Z-score of conventional banks, albeit less pronounced on the Zscore of Islamic banks. Using a sample of banks operating in 19 developing countries, the results appear to be driven by capital ratios, a component of Z-score for the two types of banks. Even though smaller on Islamic banks, individual chapters of BCPs also suggest a positive effect on the stability of conventional banks. The findings support the effective role of BCP standards in improving bank stability, whose important implications led to the Islamic Financial Services Board (IFSB) publication of new recommendations in 2015 to bring BCP standards in line with the Core Principles for Islamic Finance Regulation (CPIFRs) standards. Our findings suggest that because Islamic banks are benchmarked closely to BCPs, the implementation of CPFIRs should also positively affect their stability.

Basel Core Principles and Bank Risk

Basel Core Principles and Bank Risk PDF

Author: Ms.Enrica Detragiache

Publisher: International Monetary Fund

Published: 2010-03-01

Total Pages: 29

ISBN-13: 1451982674

DOWNLOAD EBOOK →

This paper studies whether compliance with the Basel Core Principles for effective banking supervision (BCPs) is associated with bank soundness. Using data for over 3,000 banks in 86countries, we find that neither the overall index of BCP compliance nor its individual components are robustly associated with bank risk measured by Z-scores. We also fail to find a relationship between BCP compliance and systemic risk measured by a system-wide Zscore.

Romania

Romania PDF

Author: International Monetary Fund. Monetary and Capital Markets Department

Publisher: International Monetary Fund

Published: 2018-06-20

Total Pages: 253

ISBN-13: 1484361970

DOWNLOAD EBOOK →

As an European Union (EU) Member State, Romania is subject and aligned to the EU common regulatory framework for banking supervision. The EU regulatory framework for banking supervision has been subject to significant changes since the 2008 global financial crisis and the subsequent sovereign debt crisis. The adoption of the Capital Requirements Regulation and the Capital Requirements Directive IV (CRR/CRD IV) which forms the Single Rule Book was an important step towards stronger prudential regulation. Given that a large part of Romania’s banking system is owned by Eurozone banks, the Single Supervisory Mechanism (SSM), as the home supervisor for Eurozone banks, is a key partner of the National Bank of Romania (NBR). Prudential regulations of the NBR are broadly aligned to the requirements of the Basel Core Principles (BCP). As of 2017, the NBR has identified 11 banks as systematically important, of which 8 are supervised at group level by the SSM.

Creating a Safer Financial System

Creating a Safer Financial System PDF

Author: José Vinãls

Publisher: International Monetary Fund

Published: 2013-05-14

Total Pages: 27

ISBN-13: 1484340949

DOWNLOAD EBOOK →

The U.S., the U.K., and more recently, the E.U., have proposed policy measures directly targeting complexity and business structures of banks. Unlike other, price-based reforms (e.g., Basel 3 and G-SIFI surcharges), these proposals have been developed unilaterally with material differences in scope, design and implementation schedules. This may exacerbate cross-border regulatory arbitrage and put a further burden on consolidated supervision and cross-border resolution. This paper provides an analysis of the potential implications of implementing different structural policy measures. It proposes a pragmatic and coordinated approach to development of these policies to reduce risk of regulatory arbitrage and minimize unintended consequences. In doing so, it also aims to identify a set of common policy measures that countries could adopt to re-scope bank business models and corporate structures.

Lanterna Rally - Theme by Grace Themes