SSRN-Modeling the Economic Effects of Bank Regulation and Supervision by Bilin Neyapti, Gonca Senel

This one sort of surprised me. Short version: banks and economies improve with supervision.

SSRN-Modeling the Economic Effects of Bank Regulation and Supervision by Bilin Neyapti, Gonca Senel:

"...reveals that the higher the RS [Regulation and Supervision], the higher are per capita output, wages and credit, and the lower are the interest rates. Moreover, simulations reveal that bank profitability is higher under monitoring and it is also more highly correlated with RS the higher the level of development"

The paper is my Neyapti and Senal:

Cite: Neyapti, Bilin and Senel, Gonca,Modeling the Economic Effects of Bank Regulation and Supervision(July 2008). Paolo Baffi Centre Research Paper No. 2008-32. Available at SSRN: http://ssrn.com/abstract=1284906