02183cas a2200265 a 4500 AALejournalIMF004504 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451865028 1018-5941 BD-DhAAL BD-DhAAL Detragiache, Enrica. Banking on the Principles : Compliance with Basel Core Principles and Bank Soundness / Enrica Detragiache, Thierry Tressel, Asli Demirguc-Kunt. Washington, D.C. : International Monetary Fund, 2006. 1 online resource (33 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper studies whether compliance with the Basel Core Principles for Effective Banking Supervision (BCPs) improves bank soundness. The authors find a significant and positive relationship between bank soundness (measured with Moody's financial strength ratings) and compliance with principles related to information provision2. Specifically, countries that require banks to regularly and accurately report their financial data to regulators and market participants have sounder banks. This relationship is robust to controlling for broad indexes of institutional quality, macroeconomic variables, sovereign ratings, and reverse causality. Measuring soundness through Z-scores yields similar results. These findings emphasize the importance of transparency in making supervisory processes effective and strengthening market discipline. Countries aiming to upgrade banking regulation and supervision should consider giving priority to information provision over other elements of the core principles. Mode of access: Internet Demirguc-Kunt, Asli. Tressel, Thierry. IMF Working Papers; Working Paper ; No. 2006/242 Full text available on IMF http://elibrary.imf.org/view/journals/001/2006/242/001.2006.issue-242-en.xml IMF e-Library