Bank Regulation and Supervision Ten Years after the Global Financial Crisis

Global Financial Development Report 2019/2020: Bank Regulation and Supervision a Decade after the Global Financial Crisis

“…There is limited evidence on this relationship, but available research suggests that banks prefer to reduce their lending rather discipline and supervisory capacity. Investigating the adoption process and bank capital ratios using the BRSS data, Anginer et al (2019) confirm this cautious approach, though they show that the ratio of bank equity to total assets also tends to be higher for developing country banks of comparable size. They find that countries at higher levels of economic development, and those that had a banking crisis, are more likely to adopt more advanced levels of regulation.…”

“…For an in-depth description of changes in bank regulation and supervision and an empirical analysis of what drove those changes, see Anginer et al (2019) and box 1.6 in chapter 1. The sections of BRSS 2019 are as follows: To what extent are regulatory reforms designed with high-income countries in mind appropriate for developing countries?…”

“…However, the fifth wave of the BRSS allows a full assessment of the regulatory reforms enacted in high-income and developing countries in core areas such as capital regulation, regulations enhancing market discipline, and supervisory monitoring. Although financial regulatory reforms undertaken since the financial crisis have touched on different areas, such as crossborder cooperation and the resolution of systemically important banks (SIBs), the analysis in this section focuses on the core aspects of reform that are central to financial regulation (Anginer et al 2019). assessments of bank risk exposures.…”

Bank Capital and Risk in Europe and Central Asia Ten Years after the Crisis

“…In this paper, using data from the most recent Bank Regulation and Supervision Survey (BRSS) conducted by the World Bank (Anginer et al, 2019), we examine changes in capital structure for banks in the ECA region as well as changes in capital regulations that have been implemented in the aftermath 3 of the GFC. In discussing capital regulations, it is important to keep in mind that the banking systems in ECA differ from the rest of the world in four key aspects.…”

“…The additional items that are included in the Tier 1 capital are also now subject to more stringent eligibility criteria. Nonetheless, the quality of Tier 1 capital gets diluted when additional instruments other than common equity are allowed in its computation.9 For an in-depth explanation on how the Tier 1 stringency index is computed, seeAnginer et al (2019).…”