IDEAS home Printed from https://ideas.repec.org/a/mes/emfitr/v50y2014i6p19-40.html
   My bibliography  Save this article

Bank Regulation, the Quality of Institutions, and Banking Risk in Emerging and Developing Countries: An Empirical Analysis

Author

Listed:
  • Jeroen Klomp
  • Jakob de Haan

Abstract

Using data for 371 banks from nonindustrial countries for the period 2002–8, we examine the effect of bank regulation and supervision on banking risk. Our main findings suggest that stricter regulation and supervision reduces banking risk. Notably, capital regulations and supervisory control reduce bank riskiness. Liquidity regulation and activities restrictions also restrain banking risk but only when there is a high level of institutional quality. Finally, we find that the effect of regulation and supervision also depends on the level of development.

Suggested Citation

  • Jeroen Klomp & Jakob de Haan, 2014. "Bank Regulation, the Quality of Institutions, and Banking Risk in Emerging and Developing Countries: An Empirical Analysis," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 50(6), pages 19-40, November.
    • Handle: RePEc:mes:emfitr:v:50:y:2014:i:6:p:19-40
    DOI: 10.1080/1540496X.2014.1013874
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1540496X.2014.1013874
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1540496X.2014.1013874?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:50:y:2014:i:6:p:19-40. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MREE20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.