Sample Selection Criteria for the Validation of Compliance Cost Assessment Methodology in the Banking Market
Scientific Problems of Engineering Economics of Construction and Real Estate Management, Regional and Territorial Development ICEREE'2021 [tiešsaistes resurss] : organized within 62nd International Scientific Conference of Riga Technical University: Book of Abstracts 2021
Kristaps Freimanis, Maija Šenfelde

In the field of the economics’ regulation researchers so far have built the conceptual framework showing how the deadweight loss of market failures decrease and costs of the government intervention increase with the increased level of the government intervention. To quantify relationships between the level of intervention, intervention costs and the deadweight loss with econometric models it is important to understand how to quantify the market participants’ compliance costs as a part of intervention costs. When methodology is selected validation process starts to validate methodology’s appropriateness. The objective of the research presented in this paper is to find the appropriate criteria for sample selection of banks used for validation purposes. Research presents criteria selection methodology, showing that main components there are market share, data availability in the Bloomberg system in the required format, data availability for 5 reporting years and data availability for the position of “Total Operating Expenses” in the financial statements. Criteria selection methodology shows that in general it works as expected, i.e., main market players have been selected for the validation. Research results will be used to validate methodology used for compliance cost assessment and subsequently assess all government intervention costs (other positions include regulation costs and other indirect costs) and finalize the quantification of the framework. Quantified framework could be used for more precise policy making regarding the regulation of the banking market. Research methods used: literature analysis, descriptive statistics.


Atslēgas vārdi
Banking market, deadweight loss, intervention costs, market regulation, compliance costs
Hipersaite
https://buni.rtu.lv/wp-content/uploads/sites/68/2021/09/ICEREE-abstracts_2021-sutit-web-.pdf

Freimanis, K., Šenfelde, M. Sample Selection Criteria for the Validation of Compliance Cost Assessment Methodology in the Banking Market. No: Scientific Problems of Engineering Economics of Construction and Real Estate Management, Regional and Territorial Development ICEREE'2021 [tiešsaistes resurss] : organized within 62nd International Scientific Conference of Riga Technical University: Book of Abstracts, Latvija, Riga, 30.-30. septembris, 2021. Riga: RTU Press, 2021, 41.-41.lpp. ISBN 978-9934-22-677-9.

Publikācijas valoda
English (en)
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