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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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advice about bank ewgulation and supervision and lower the marginal cost of empirical research …
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in banking"--World Bank web site …
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"There is a wide cross-country variation in the institutional structure of bank failure resolution, including the role … scheme are more stable and less likely to become insolvent. Involvement of the deposit insurer in bank failure resolution … thus dampens the negative effect that deposit insurance has on banks' risk taking. "--World Bank web site …
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institutions dispose a country toward adopting design features that inadequately control risk-shifting. "--World Bank web site …
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Most banks around the world delay provisioning for bad loans until it is too late, when cyclical downturns have already set in. The size and timing of loan loss provisions tend to improve with the level of economic development
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