Impact of Bank Regulations on Banks' Profitability: Cross-Country Evidence

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F22%3A43922969" target="_blank" >RIV/62156489:43110/22:43922969 - isvavai.cz</a>
Result on the web
<a href="https://doi.org/10.11118/ejobsat.2022.010" target="_blank" >https://doi.org/10.11118/ejobsat.2022.010</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.11118/ejobsat.2022.010" target="_blank" >10.11118/ejobsat.2022.010</a>

Result language
angličtina
Original language name
Impact of Bank Regulations on Banks' Profitability: Cross-Country Evidence
Original language description
The clarion call for reform in bank regulation that ensures sound financial system and better performance following the financial melt-down of 2007-2009 across the globe has made it necessary to identify reforms that ensure these objectives are achieved. Using the most recent Banking Regulation and Supervision Survey of the World Bank and showing through empirical evidence, this paper adds to recent literature on the assessment of the impact of bank regulation on the profitability of banks across the globe. An Orbis financial database for 7535 banks observations in 114 countries over the period 2011-2018 is used for this study. The study shows that stringent capital requirement has positive and very significant impact on bank profitability. Same result is reported for Accounting/Information disclosure implying that regulations that strictly enforce information disclosure by banks to stakeholders eventually impacts positively on profitability. However, regulation on discipline/Problem institutions/exit has very significant and negative impact on bank profitability. Finally, the study again shows through the results that restriction on banking activities has positive impact on bank profitability though not significant just as expected.
Czech name
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Czech description
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Type
J<sub>SC</sub> - Article in a specialist periodical, which is included in the SCOPUS database
CEP classification
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OECD FORD branch
50206 - Finance

Project
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Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year
2022
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

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