The institutions themselves may also derive benefit from improved transparency. Creating a modicum of trust in the eyes of the general public through the regular flow of reliable information lowers the level of susceptibility to market uncertainty, enhances the accessibility of the capital markets and promises more favourable refunding conditions. Again, banking supervisors can expect compliance with prudential rules to be enhanced as well.
Naturally, market discipline has the biggest role to play at the major listed institutions. It is primarily institutions that are in the public eye that have to expect sanctions as a result of insufficient information. However, those institutions are among the major channels through which regional crises are spread internationally.