Bank governance and regulation

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Abstract

Recent financial regulatory reforms target banks’ risk-taking behaviours without considering their ownership and governance. This chapter argues that bank governance influences how regulations alter bank’s incentives. Banks with more powerful owners tend to take more risks, and greater capital requirements actually increase risk-taking in banks with powerful shareholders. Bank regulation should condition on bank governance.
Original languageEnglish
Title of host publicationThe Future of Banking
EditorsT.H.L. Beck
Place of PublicationLondon
PublisherCentre for Economic Policy Research (CEPR)
Pages49-56
Number of pages103
ISBN (Print)9781907142468
Publication statusPublished - 2011

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Governance
Bank regulation
Ownership
Capital requirements
Regulatory reform
Risk-taking behavior
Incentives
Owners
Risk taking
Bank risk taking
Shareholders

Cite this

Laeven, L. (2011). Bank governance and regulation. In T. H. L. Beck (Ed.), The Future of Banking (pp. 49-56). London: Centre for Economic Policy Research (CEPR).
Laeven, L. / Bank governance and regulation. The Future of Banking. editor / T.H.L. Beck. London : Centre for Economic Policy Research (CEPR), 2011. pp. 49-56
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Laeven, L 2011, Bank governance and regulation. in THL Beck (ed.), The Future of Banking. Centre for Economic Policy Research (CEPR), London, pp. 49-56.

Bank governance and regulation. / Laeven, L.

The Future of Banking. ed. / T.H.L. Beck. London : Centre for Economic Policy Research (CEPR), 2011. p. 49-56.

Research output: Chapter in Book/Report/Conference proceedingChapterScientificpeer-review

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Laeven L. Bank governance and regulation. In Beck THL, editor, The Future of Banking. London: Centre for Economic Policy Research (CEPR). 2011. p. 49-56