Veto Players, International Constraints, and Bank Supervision Reform: A Cross-National Approach.

This paper examines whether political institutional factors - checks and balances that we proxy by utilizing data on veto gates and veto players - can help to explain cross national banking policy outcomes during the late 1990s. While controlling for the effects of economic variables as well as other political factors, we find checks and balances to be a robust and statistically significant explanation of banking reforms. Moreover, as expected, we find that the relationship between checks and balances and policy outcomes is non-linear. We also find that industry structure does not provide leverage for explaining policy outcomes. Check author’s web site for an updated version of the paper. [ABSTRACT FROM AUTHOR]