Does bank regulation and competition increase transparency?

Press/Media

Description

The Global Crisis has brought the ins and outs of bank stability to the attention of increasing numbers of academics and policymakers. But what is the impact of bank regulation and competition on bank opacity? This column presents one of the first evaluations of the impact of bank regulatory reforms on the quality of information disclosed by banks, which in turn helps us assess bank stability.

Subject

 
Period28 Jul 2015

Media coverage

1

Media coverage

  • TitleWorld Economic Forum
    Media name/outletWorld Economic Forum
    CountryUnited States
    Date28/07/15
    DescriptionDid regulatory reforms that lower ed barriers to competition among U.S. banks increase or decrease the quality of information that banks disclose to the public and regulators ? We find that an intensification of competition reduce d abnormal accruals of loan loss provisions and the frequency with which banks restate financial statements The results indicate that competition reduces bank opacity, enhancing the ability of markets and regulators to monitor banks.
    URLhttps://www.weforum.org/agenda/2015/07/does-bank-regulation-and-competition-increase-transparency/
    PersonsLiangliang Jiang