The paper highlights gaps in key areas of legislation, regulation and supervision, standard-setting of Shari’ah-compliance and pinpoints areas where improvement is desirable to ensure stability in the Islamic banking and finance sector. The comparative analysis focuses on 11 selected Muslim countries (Malaysia, Iran, Bahrain, Saudi Arabia, Pakistan, Turkey, Indonesia, Sudan, Kuwait, U.A.E ...

The article attempts to correlate the anti-sanction regulation of banking services market and anti-crisis legal regime banking. author distinguishes between sanctions that frames relevant is part its regulation. substantiates antisanctions does not include means counter-sanctions, since latter do aim mitigate for market, but are retaliatory restrictive measures often also negatively affect acti...

This paper studies the determinants of bank charter value and its disciplining effect on bank risktaking in the period since the mid-1980s. Due to significant macro developments in the banking industry, including legislation and regulation, consolidation, and technological advances, we find the magnitude, determinants, and the disciplining effect of bank charter value changed quite substantiall...

Abstract How does the shadow banking system respond to changes in capital regulation of commercial banks? We propose a quantitative general equilibrium model with regulated and unregulated banks study unintended consequences regulation. Tighter requirements for cause higher convenience yield on debt all banks, leading bank leverage larger sector. At same time, tighter eliminates subsidies from ...

There is relatively little known about the m-banking use by the rural small and medium enterprises (SMEs) in Bangladesh. This research fills the gap by presenting the key advantages of using mbanking by the rural SMEs that a bank can offer in Bangladesh. The research also reports on the critical country level-factors, organizational success factors and obstacles in m-banking adoption for rural ...

We explore the rationale for regulatory rules that prohibit banks from developing some of their natural activities when their capital level is low, as epitomized by the US Prompt Corrective Action (PCA). This paper is built on two insights. First, in a moral hazard setting, capital requirement regulation may force banks to hold a large fraction of safe assets which, in turn, may lower their inc...

In a money-search model where deposits are used as means-of-payments, banks have expertise to obtain higher returns from assets with a cost and an economy of scale but are subject to limited commitment and moral hazard. They can pledge a proportion of asset holdings to issue deposits. Optimal regulation trades off efficiency in assetmanagement and liquidity service banks provide. An optimal cha...

M any Middle-East countries, like Iran, have dynamic banking industries and have observed merger and acquisitions (M&A) waves. M&A waves are usually defined in the developed world context and some of their main drivers were identified as: market timing, environment's shocks, merger manias, government regulation and regulatory, and technological changes. It has been discussed that merger waves ...

This paper analyzes the optimal design of banking regulation when three layers of agency conflicts between society and banks, society and supervisors, and bank owners and managers are present. We argue that regulatory rules, supervisory incentives, and managerial compensation form an interdependent nexus. Since managerial incentives reveal information about banks’ operating policies comprehensi...