#05-20
Banking Fragility and Disclosure: International Evidence
Solomon Tadesse, December 2005
Abstract: Motivated by recent public policy debates on the role of market discipline in banking
stability, the study examines the impact of greater bank disclosure in mitigating the
likelihood of systemic banking crisis. In a cross sectional study of banking systems
across forty-nine countries in the nineties, it finds evidence that banking crises are less
likely in countries with regulatory regimes that require extensive bank disclosure and
stringent auditing.
Keywords: Banking Crisis, Disclosure, Transparency, Audit Stringency
JEL classifications : G21, G28
