bank performance. They argue that it is important to include indicators of all the relevant governance effects in the same … likely due to placing nonperforming loans into residual entities, leaving "good" privatized banks."--World Bank web site …

punish risky banks by withdrawing their deposits. Bank fundamentals are at least as important as other factors affecting … discipline existed there in the 1980s and 1990s. Using a set of bank panel data, they test for the presence of market discipline … withdrawing their deposits. Standardized coefficients and variance decomposition of deposits indicate that bank fundamentals are …