
The disciplining effect of bank supervision: evidence from SupTech
By Bank for International Settlements (BIS), Banco Central do Brasil
The study reveals that suptech effectively disciplines bank behaviour, based on an analysis of the Central Bank of Brazil's (BCB) early warning system. The BCB's suptech application assesses institutions’ on- and off-balance positions through three critical perspectives: temporal (comparing current performance to past performance), comparative (benchmarking against peer groups), and intrinsic…
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