Pandemics lead to a sudden decline in the level of economic activities. Lending institutions reduce credit supply businesses due fears rising bad debts during pandemic. This paper highlights some approach financial regulation and bank supervision pandemic such as SARS COVID-19 I show that can be enhanced by diversifying system, maintaining adequate liquidity stimulating provide more credit, del...

The recent financial crisis has shown that the reforming in regulation and supervision is essential. This paper studies whether banking regulation improves bank soundness or more regulation lead to decrease soundness of banking. Specifically, countries which require banks to report regularly and accurately their financial data to regulators and market participants have sounder banks. In th...

This paper investigates the role of banking supervision in controlling bank risk. Banking supervision is measured in terms of enforcement outputs (i.e., on-site audits and sanctions). Our results show an inverted U-shaped relationship between on-site audits and bank risk, while the relationship between sanctions and risk appears to be linear and negative. We also consider the combined effect of...

Using data for 1238 banks located in 94 developing and emerging countries, we explore whether the impact of bank regulation and supervision on banking risk (measured by the banks’ Z-scores) depends on bank structure. Our findings suggest that stricter regulation and supervision increases the banks’ Z-scores. Notably capital requirements and supervisory control diminish banking risk. However, th...

Previous research has found little evidence that banking supervision improves bank performance, possibly because supervision is endogenous to performance. This paper estimates causal effects of supervision on performance using discontinuities in the minimum frequency of examinations imposed by regulation. The bank asset size threshold at which these discontinuities occur changes over time, prov...