absence of effective regulation. That explains why with deregulation market competition could culminate in excessive risk … opportunistic profit (rent) seeking was more the cause rather than the effect of moral hazard and regulation failure. Deregulation … promised higher profitability partly because of better risk management made possible by advances in information technology and …

regulation on the probability of a crisis. We test this relationship by applying a Probit model of a non-linear specification to …: it rises as regulation stringency moves from low to medium levels and falls from medium to high levels. Countries located …