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The regulatory and supervisory practices most effective in promoting good performance and stability in the banking sector are those that force accurate information disclosure, empower private sector monitoring of banks, and foster incentives for private agents to exert corporate control
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Analysis of a panel data set for 1976-98 shows that on balance stock markets and banks positively influence economic growth; findings that do not result from biases induced by simultaneity, omitted variables, or unobserved country-specific effects
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This new and comprehensive database on the regulation and supervision of banks in 107 countries should better inform advice about bank ewgulation and supervision and lower the marginal cost of empirical research
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augmented version of one of these theories. The law and finance view stresses that different legal traditions emphasize to … development. The dynamic law and finance view augments the law and finance view, stressing that legal traditions also differ in … weaker financial institutions, while those with common law and German civil laws tend to have stronger financial institutions …
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