Impact of Monetary Policy and Bank Regulations on Efficiency
Although the quality and adequacy of banking regulation and supervision are often touted as the essential factors contributing to a sound and well-performing banking sector, few studies have produced empirical evidence to back these assertions. A common finding is that certain specific regulatory elements may have a positive impact, while others may do the opposite or invite instability. Moreover, an adequate and well-functioning regulatory system appears to improve various performance or stability measures as long as they are complemented by other institutional and macroeconomic conditions.
KeywordsMonetary Policy Total Asset Capital Requirement Bank Regulation Profit Efficiency
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