Does Regulatory Governance Matter for Financial System Stability? An Empirical Analysis

By M. Quintyn, Kina Chenard. Social Science Research Network, 2004

129 citations recorded by the source corpus.

This paper provides empirical evidence that the quality of regulatory governancegovernance practices adopted by financial system regulators and supervisorsmatters for financial system soundness. The paper constructs indices of financial system soundness and regulatory governance, based on country data collected from the Financial Sector Assessment Program (FSAP). Regression results indicate that regulatory governance has a significant influence on financial system soundness, along with variables reflecting macroeconomic conditions, the structure of the banking system, and the quality of political institutions and public sector governance. The results also indicate that good public sector governance amplifies the impact of regulatory governance on financial system soundness.

Subfields: Finance

View Paper: https://www.semanticscholar.org/paper/caa054cd34d1dbf858bdae80cdcc2fc66a199948

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In Finance

1. J. Klomp
2. Jakob de Haan

Citations in the corpus

• Central bank independence and financial instability (2009, background): “Many central banks have obtained a responsibility for financial stability in addition to their price stability mandate (Das et al., 2004).”