Does Basel Compliance Matter for Bank Performance ?

Rym Ayadi, Sami Ben Naceur, Barbara Casu, Barry Quinn

Research output: Book/ReportOther report


The global financial crisis underscored the importance of regulation and supervision to a well functioning banking system that efficiently channels financial resources into investment. In this paper, we contribute to the ongoing policy debate by assessing whether compliance with international regulatory standards and protocols enhances bank operating efficiency. We focus specifically on the adoption of international capital standards and the Basel Core Principles for Effective Bank Supervision (BCP). The relationship between bank efficiency and regulatory compliance is investigated using the (Simar and Wilson 2007) double bootstrapping approach on an international sample of publicly listed banks. Our results indicate that overall BCP compliance, or indeed compliance with any of its individual chapters, has no association with bank efficiency.
Original languageEnglish
PublisherInternational Monetary Fund
Number of pages41
ISBN (Print)9781475580389
Publication statusPublished - 05 May 2015

Publication series

NameIMF Working Paper series
PublisherInternational Monetary Fund

Bibliographical note

Working Paper No. 15/100


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