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Bank regulation and supervision in 180 countries from 1999 to 2011

James R. Barth (Auburn University, Auburn, Alabama, USA and Milken Institute, Santa Monica, California, USA)
Gerard Caprio Jr (Williams College, Williamstown, Massachusetts, USA)
Ross Levine (University of California, Berkeley, Berkeley, California, USA)

Journal of Financial Economic Policy

ISSN: 1757-6385

Article publication date: 24 May 2013

4201

Abstract

Purpose

The purpose of this paper is to discuss and provide new data and measures of bank regulatory and supervisory policies in 180 countries from 1999 to 2011.

Design/methodology/approach

The authors' approach is based upon the quantification of hundreds of questions, including information on permissible bank activities, capital requirements, the powers of official supervisory agencies, information disclosure requirements, external governance mechanisms, deposit insurance, barriers to entry, and loan provisioning, to form indices of key bank regulatory and supervisory policies.

Findings

It is found that the regulation and supervision of banks varies widely across countries in many different dimensions. Furthermore, there has not been a convergence in bank regulatory regimes over the past decade despite the worst global financial crisis since the Great Depression.

Research limitations/implications

The data are based on survey responses and this requires that the answers be accurate. To better ensure this is the case, several checks were made to ensure greater accuracy in all the answers. Using this database one can perform various statistical analyses in attempt to determine which bank regulatory regimes work best to promote well‐functioning banking systems.

Originality/value

The authors' data and measures are new and unique so as enable policy makers and researchers to examine cross‐country comparisons and analyses of changes in banking policies over time.

Keywords

Citation

Barth, J.R., Caprio, G. and Levine, R. (2013), "Bank regulation and supervision in 180 countries from 1999 to 2011", Journal of Financial Economic Policy, Vol. 5 No. 2, pp. 111-219. https://doi.org/10.1108/17576381311329661

Publisher

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Emerald Group Publishing Limited

Copyright © 2013, Emerald Group Publishing Limited

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