IMF paper finds no link between efficiency and Basel compliance
Basel principles are not associated with bank efficiency gains
A working paper published on May 5 by the IMF has found there is no link between a bank's efficiency and compliance with the Basel Committee's Core Principles for Effective Bank Supervision (BCP).
"Our results indicate that overall BCP compliance, or indeed compliance with any of its individual chapters, has no association with bank efficiency," authors Rym Ayadi, Sami Ben Naceur, Barbara Casu and Barry Quinn write.
In Does Basel compliance matter for bank performance?, the authors study data
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