Bank Regulation and Market Discipline: Empirical Evidence from the Introduction of Basel II Pillar 3

• Antragsteller: Professor Dr. Holger Daske
• Fachliche Zuordnung: Accounting und Finance
• Förderung: Förderung von 2012 bis 2017
• Projektkennung: Deutsche Forschungsgemeinschaft (DFG) - Projektnummer 201541626

As part of the Basel II accord, extensive capital and risk disclosure regulations have been introduced for the banking sector in order to enhance mechanisms of market discipline. Adoption of these requirements is heterogeneous across countries and across banks. We aim to exploit this variation to study the effect of transparency requirements as a means of banking regulation. More specifically, we analyze the impact of risk disclosures on cost of funding and depositor behavior as well as how these disclosure-induced changes in banks’ cost of capital reversely affect risk taking and capital adequacy of banks, i.e. contribute to financial stability by reducing the probability of bank failures.

• DFG-Verfahren: Schwerpunktprogramme
• Teilprojekt zu: SPP 1578: Finanzmärkte und Gesamtwirtschaftliche Entwicklung
• Beteiligte Person: Professor Dr. Jannis Bischof