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Applied Economics Letters

Volume 18, Issue 5, 2011

Have more strictly regulated banking systems fared better during the recent financial crisis?

Have more strictly regulated banking systems fared better during the recent financial crisis?

DOI:
10.1080/13504851003689684
Rüdiger Ahrenda*, Jens M. Arnolda & Fabrice Murtina

pages 399-403

Available online: 18 Nov 2010

Abstract

We assess whether during the recent financial crisis banking systems in countries with more stringent prudential banking regulation have proved more stable. We find indicators of regulatory strength to be relatively well correlated with the extent to which countries have escaped damage during the recent crisis, as measured either by the degree of equity value destruction in the banking sector or by the fiscal cost of financial sector rescue.

 

Details

  • Available online: 18 Nov 2010

Author affiliations

  • a OECD Economics Department, 2 rue André Pascal, F-75775, Paris Cedex 16, France

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