ABSTRACT. Gruben et al. test the links between depositor discipline and the predisposition of banks to break towards risky behavior in periods associated with bank liberalization or privatization. Foster asserts that central banks have typically employed national accounting and financial reporting standards, in many cases tailored to accommodate central bank-specific activities. Hirtle uses data from the banking companies' regulatory reports, examines the risk and return from trading and, using equity market data, examines risk and return for the firm as a whole.