The genesis of international banking regulation: A literature review using text analysis

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This paper reviews the publications on the development of banking regulation and identifies the major topics within this research area. The aim of this study is to summarize the empirical evidence of the academic literature on banking regulation for the last 30 years. For the systematic review we use a range of databases. To reach this aim we combine the elements of technical text analysis and method of expert assessment. To identify the major topics within the research area of banking regulation we develop a complex methodology based on text analysis which includes: principal component analysis, clustering, social network analysis. This approach differentiates our study from the similar ones. The primary result is a systematic review of academic literature that estimates the outcomes of banking regulation from Basel I to Basel III. Using a variety of methods we not only identify the key topics but also systematized the findings according to each topic. The implementation of the BCBS Agreements (Basel I–III) helped to improve financial stability and reduce the probability of banks’ default. At the same time, the analysis showed, in general, a negative assessment of the impact of capital adequacy regulation on the lending activity of banks, on the bank interest margin and, accordingly, the efficiency of banking activities. In some cases, it is confirmed that the increase in market discipline and the expansion of the supervisory powers of the authorities (Basel II) leads to an increase in banking efficiency. The study contributes to the existing literature in several aspects. 1. We cover various aspects of estimation of banking regulation development, namely, its impact on the financial stability of banks, on their lending activity and efficiency. 2. The study covers a broad range of publications over the last 30 years including highly-cited papers as well as the recent articles. We examine the issues dynamically: from Basel I to Basel III. 3. We use text analysis to identify and systematize the key topics within the selected research area and to evaluate the empirical evidence.

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Sobre autores

E. Fedorova

Financial University under the Government of the Russian Federation

Autor responsável pela correspondência
Email: ecolena@mail.ru
Rússia, 125167, Moscow

E. Meshkova

Bauman Moscow State Technical University

Email: eimeshkova@fa.ru
Rússia, Moscow

A. Nevredinov

Bauman Moscow State Technical University

Email: a.r.nevredinov@gmail.com
Rússia, Moscow

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