Drawing on 10 years of data and analysis, the Global Financial Development Report 2019/2020 uncovers new evidence on the regulatory remedies adopted to prevent future financial troubles, and particularly the impact of reforms on market discipline and bank capital. Countries should design and enforce regulations that are appropriate for the institutional environment, strength of market discipline, supervisory capacity, and business models of banks in a given country.
Regulations also need to be compatible with incentives, but designing and enforcing such regulations are complex tasks, particularly where sophisticated markets do not exist and institutions are underdeveloped. Globalization and technological change are important trends that make it even more challenging to provide effective oversight of banks.
The document is available for download in English the following link.
Source: World Bank. 2020. Global Financial Development Report 2019/2020: Bank Regulation and Supervision a Decade after the Global Financial Crisis. Washington, DC: World Bank. © World Bank. https://openknowledge.worldbank.org/handle/10986/32595 License: CC BY 3.0 IGO.