Rethinking Bank Regulation : Till Angels Govern
Editorial Reviews
Review
'This well-written and compelling book shakes the conventional wisdom about banking regulation to its foundations. It is also a model of how to do judicious analysis of an important policy question, then apply it to give real world recommendations. Nobody involved with financial and banking policies, or for that matter with economic policy in developing countries in general, can afford NOT to read this book.' William Easterly, New York University
'...an important book. It provides striking evidence (using a unique data set created at the World Bank) that strengthening the discretionary powers of prudential supervisors in countries with weak institutional environments leads to lower level of bank development, greater corruption in lending and banks that are less safe and sound. Following the Basel II recommendation of strengthening supervisory powers, therefore, may do more harm than good in developing countries, unless it is accompanied by substantial progress in institutional development. This book provides an important warning to policy makers that what works for advanced countries may not work for developing countries.' Frederic Mishkin, Columbia University
'Rethinking Bank Regulation is a thought provoking study, attacking the current practice of bank regulation and supervision. Using data from more than 150 countries, the authors conclude that strengthening capital standards or empowering supervisors does not boost bank efficiency, reduce corruption in lending, or lower banking system fragility. They urge reforms that would emphasize greater disclosure and transparency in the banking sector as well as better private sector monitoring of banks. This is a must read for all those interested in banking sector reform. It will also be fascinating for students of political economy. Raghuram Rajan, International Monetary Fund
Book Description
This volume assembles and presents a new database on bank regulation in over 150 countries (included also on CD). It offers the first comprehensive cross-country assessment of the impact of bank regulation on the operation of banks, and assesses the validity of the Basel Committee's influential approach to bank regulation. The treatment also provides an empirical evaluation of the historic debate about the proper role of government in the economy by studying bank regulation and analyzes the role of politics in determining regulatory approaches to banking. The data also indicate that restrictions on the entry of new banks, government ownership of banks, and restrictions on bank activities hurt banking system performance. The authors find that domestic political factors shape both regulations and their effectiveness.
Rethinking Bank Regulation : Till Angels Govern
Rethinking Bank Regulation : Till Angels Govern,James R. Barth,Gerard Caprio Jr.,Ross Levine,Cambridge University Press,0521855764,Banking law,Banks & Banking,Banks and banking,Business & Economics,Business / Economics / Finance,Business/Economics,Finance,Government policy,State supervision,Banking,Business & Economics / Finance
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