Publication: Bank Regulation and Supervision Ten Years after the Global Financial Crisis
Date
2019-10
ISSN
Published
2019-10
Author(s)
Abstract
This paper summarizes the latest update
of the World Bank Bank Regulation and Supervision Survey.
The paper explores and summarizes the evolution in bank
capital regulations, capitalization of banks, market
discipline, and supervisory power since the global financial
crisis. It shows that regulatory capital increased, but some
elements of capital regulations became laxer. Market
discipline may have deteriorated as the financial safety
nets became more generous after the crisis. Bank supervision
became stricter and more complex compared with the
pre–global financial crisis period. However, supervisory
capacity did not increase in proportion to the extent and
complexity of new bank regulations. The paper documents the
importance of defining bank regulatory capital narrowly, as
the quality of capital matters in reducing bank risk. This
is particularly true for large banks, because they have more
discretion in the computation of risk weights and are better
able to issue a variety of capital instruments.
Citation
“Anginer, Deniz; Bertay, Ata Can; Cull, Robert; Demirguc-Kunt, Asli; Mare, Davide S.. 2019. Bank Regulation and Supervision Ten Years after the Global Financial Crisis. Policy Research Working Paper;No. 9044. © World Bank, Washington, DC. http://hdl.handle.net/10986/32589 License: CC BY 3.0 IGO.”
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