Transparency in European banking system – a technical and economic approach

Ștefănescu Cristina Alexandrina
2014 Romanian Economic Journal  
The objective of our paper is to provide a comprehensive analysis of possible relationships between two different approaches of "transparency" – the technical vs. the economic one. Thus, irrespective of prior literature, our paper goes beyond a "solo" analysis of either of two above-mentioned "facets", by providing a combined study. So, we focused on both (1) XBRL's role in enhancing the quality of disclosure, by assessing its benefices and consequences and (2) corporate governance mechanism's
more » ... ower to improve efficiency and effectiveness of banking supervision by encouraging transparency. The results of the performed analysis generally reveal that there is a strong and positive relationship between the level of disclosure promoted by corporate governance codes enforced in European Union countries and the degree of implementation of both XBRL-based projects designed for banking environment (FINREP and COREP). Consequently, we can assert that there is a consensus between the economic and technical approach of transparency in European banking system
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