British Accounting and Finance Association April 2014

In April I attended the BAFA annual conference hosted by the London School of Economics.  My co-author, Barabara Casu (Cass Business School) presented a piece of work on regulatory compliance and bank performance.  We used a unique dataset including Basel Core Principle for effective banking supervision compliance data (BCPs) supplied by the IMF to ascertain if banks’ performance is influenced by compliance with these BCPs.  Using a global sample of banks and modern econometric techniques we find little evidence of an association between compliance and bank operating efficiency, suggestive of the inadequacy of such ‘one size fits all’ banking supervision principles.