Abstract This study explores the effect of regulatory governance on financial stability using cross-sectional data from 55 countries. The findings show that and various subcomponents are positively correlated with in selected results, based ordinary least square method, explain has a significant positive influence Further, concerning different dimensions governance, it is showed an individual i...

This paper proposes a model of network interactions in the interbank market. Our innovation is to model systemic risk in the interbank network as the propagation of incentives or strategic behavior rather than the propagation of losses after default. Transmission in our model is not based on default. Instead, we explain bank profitability based on competition incentives and the outcome of a str...

Rogoff, 1985, suggested that central bank independence would lead to lower inflation but greater output variability. Alesina and Gatti, 1995, demonstrated Rogoff’s work was partial by only considering economic sources of output variability. By including political factors, circumstances could be identified when making a central bank independent could reduce both inflation and output variability....

The potential impact of interconnected financial institutions on interbank financial systems is a financial stability concern for central banks and regulators. A number of algorithms/methods have been developed to extrapolate latent interbank risk exposures. However, most use highly stylized network models and reconstruction methods with global optimality lending allocation approaches such as m...

Conventional measures of banking sector The traditional indicators utilized for assessing the size, depth and development of a country’s banking (financial) sector are: • The ratio of M2 to GDP • The ratio of private credit to GDP. In particular, both these measures have been used to show the causal effects of financial development on economic growth. However, both measures have some limitation...

The conventional wisdom in economic theory prescribes that the major role of the Central Bank is to design and conduct active monetary policy aiming at curbing inflation and achieving the price stability. After half a century of endeavors in attaining this target, Central Bank of the Islamic Republic of Iran has gone through tumultuous periods gaining mixed results in its efforts. The asse...

Coupled two-dimensional (2D) morphodynamic and bank erosion models are gaining attentions in recent years. It has been shown that such models have advantages over the one-dimensional (1D) modeling approaches. In this paper, a previous 2D bank erosion model with the moving mesh method is extended to include the fixed mesh approach. Further, two practical streams with differing complexity are sim...

The views expressed in this paper are those of their authors and not necessarily the views of the Financial Stability Institute or the Bank for International Settlements. iii Foreword The Financial Stability Institute is pleased to present the winning FSI Award paper for 2008. This award, announced every two years at the time of the International Conference of Banking Supervisors, was establish...