Macroprudential Regulation and Policy for the Islamic Financial Industry

But, as studies suggest, there is disparity between the theory and practice of Islamic finance, as Islamic intermediaries are inclined to mark-up (Murabahah) contracts which are similar to traditional financial system that is prone to ...

Author: Muhamed Zulkhibri

Publisher: Springer

ISBN: 9783319304458

Category: Business & Economics

Page: 272

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This volume aims to discuss the current research, theory, methodology and applications of macropreudential regulation and policy for the Islamic financial industry. Published in cooperation with the Islamic Research and Training Institute (IRTI), this book features contributions from a workshop presented in collaboration with the University College of Bahrain (UCB) in Manama, Bahrain, aimed to bring together experts in Islamic banking and regulation and financial economics. This resulting book sheds light on how macroprudential policy may be implemented in the Islamic financial system, and indicates current challenges and their effects on economic growth, financial stability and monetary regulation. Macroprudential policy is increasingly seen as a way of dealing with the different dimensions of systemic risk. But many central banks, bank supervisors and regulators have limited experience with macroprudential tools, particularly in the Islamic financial industry. Given the complementarities between monetary policy and financial stability, it appears that central banks would always play an important role in macroprudential policy. But how should macroprudential policy best interact with monetary policy? It is becoming more pressing for the central banks to conduct monetary policy in which its conventional banking system operates side by side with Islamic banking system. This question has received increasing attention in the research literature but there is much we still need to learn. This is why new insights from research on macroprudential policy – which has gained important impetus in recent years – are so valuable. Featuring contributions on topics such as macroprudential regulation, policy, tools and instruments; governance, systematic risk, monetary policy, and bank leverage, the editors provide a collection of comprehensive research covering the most important issues on macroprudential policy and regulation for the Islamic financial industry. This volume is expected to be a significant contribution to the literature in the field of Islamic finance and evaluation of public policies to promote the development for Islamic financial industry. It is also served as a key text for students, academics, researchers, policy-makers in the field of Islamic finance.
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Risks and Returns

Managing Financial Trade-Offs for Inclusive Growth in Europe and Central Asia David Michael Gould, Martin Melecky ... “Financial Sector Policy in Practice: Benchmarking Financial Sector Strategies around the World.

Author: David Michael Gould

Publisher: World Bank Publications

ISBN: 9781464809682

Category: Business & Economics

Page: 292

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During the 1990s, Emerging Europe and Central Asia (ECA) opted for a model of rapid financial development focused on bank credit expansion often funded by foreign capital. This model helped boost the financial inclusion of firms and households, but was also accompanied by lower financial efficiency and increased vulnerability to banking crises. The need for financial sector reforms has become more urgent as stagnating income growth, particularly of middle- to lower-income earners, is leading to increased dissatisfaction with the status quo of low productivity growth and limited access to opportunities. This demand for change can be the impetus for rebalancing financial policies to support higher and more inclusive growth. A healthy and balanced financial sector is needed to support structural adjustment in the oil dependent economies of the eastern side ECA and greater innovation in the countries of the western part of ECA. This report argues that financial development must reach beyond increasing access to credit. ECA countries should strive to build balanced financial systems integrating both bank and non-bank markets, enabling prudent financial inclusion. Most importantly, ECA falls significantly behind other world regions in the use of saving products. Striking the right balance across all dimensions of financial development (stability, efficiency, inclusion, and overall depth) is crucial for achieving and sustaining inclusive growth.
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Risk Management in the Polish Financial System

growth in GDP would be best influenced by a policy mix, that is, a combination of a fiscal and a monetary policy. In practice, however, it has turned out that applying a policy mix is only possible alternately as an active monetary ...

Author: Marian Noga

Publisher: Springer

ISBN: 9781137549020

Category: Business & Economics

Page: 261

View: 169

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With globalisation comes an increase in the threat from systemic risk. As national economies become more globally entwined many argue that insufficient attention is being given to systemic risk; a principal contributor to recent economic crises. Focusing on the Polish financial system, this book addresses this critical issue within a global economic context. It advocates that accurate risk management practices and appropriate micro and macroeconomic policies can be created and maintained in order to manage systemic risk at both a national and international level. The book reviews current systemic risk management practices, analysing stability and existing micro- and macroprudential policies, before examining the current risks involved in investing in financial instruments and those associated with investing in stock exchanges. It offers suggestions for the effective implementation of a well-designed public policy, through well managed fiscal and monetary policies, and reflects the roles of households and companies in planning, organizing, and controlling socio-economic activity to control risk. Risk Management in the Polish Financial System aims to redefine the taxonomy of systemic risk, offering practical and regulatory socio-economic processes which can be applied to current risk management practices, as well as provide a risk map for the years to come.
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Taxing the Financial Sector

This volume explores the challenges faced by tax policymakers and identifies modern best practices in several areas: banks, insurance companies, securities companies, investment funds, pension funds, and derivatives.

Author: Mr.Howell H. Zee

Publisher: International Monetary Fund

ISBN: 9781589063167

Category: Business & Economics

Page: 93

View: 739

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One of the most complex issues in tax policy today is the treatment of the institutions, products, and services that make up the financial sector. It can be harder to ascertain income, expenses, and profits for financial firms than for firms selling goods and services, and it is easier for individuals and firms to manipulate financial transactions so as to exploit tax loopholes. This volume explores the challenges faced by tax policymakers and identifies modern best practices in several areas: banks, insurance companies, securities companies, investment funds, pension funds, and derivatives.
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Systemic Risk in the Financial Sector

10 John B Taylor, “Discretion versus Policy Rules in Practice” (1993) 39 Carnegie-Rochester Conference Series on Public Policy 195; Dale W Henderson & Warwick J McKibbin, “A Comparison of Some Basis Monetary Policy Regimes for Open ...

Author: Douglas W. Arner

Publisher: McGill-Queen's Press - MQUP

ISBN: 9781928096900

Category: Political Science

Page:

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In late 2008, the world's financial system was teetering on the brink of systemic collapse. While the impacts of the global financial crisis would be felt immediately, at every level of the economy, it would also send years-long aftershocks through investment, banking and regulatory circles worldwide. More than a decade after the worst year of the global financial crisis, what has been learned from its harsh lessons? Are governments and regulators more prepared for another financial system failure that would significantly affect the real economy? What may be the potential triggers for such a collapse to occur in the future? Systemic Risk in the Financial Sector: Ten Years after the Great Crash draws on some of the world's leading experts on financial stability and regulation to examine and critique the progress made since 2008 in addressing systemic risk. The book covers topics such as central banks and macroprudential policies; fintech; regulators' perspectives from the United States and the European Union; the logistical and incentive challenges that impede standardization and collection; clearing houses and systemic risk; optimal resolution and bail-in tools; and bank leverage, welfare and regulation. Drawing on experts across disciplines — including Howell Jackson, John Geanakoplos, Charles Goodhart, Anat Admati, Roberta Romano and Martin Hellwig — Systemic Risk in the Financial Sector is the definitive guide to understanding the global financial crisis, the safeguards being put into place to try to avoid similar crises in the future, and the limitations of those safeguards.
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Documents

1 International level The main existing network for coordination of policy and practice on microfinance is the ... So there is a clear need to agree on financial sector policies within a country , appropriate interest rates given to ...

Author:

Publisher:

ISBN: STANFORD:36105073116522

Category: European communities

Page:

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Industrial Restructuring

Industrial restructuring involves actions by enterprises to bridge gaps between their current performance and what is required to become internationally competitive.

Author: Ira W. Lieberman

Publisher:

ISBN: STANFORD:36105035117063

Category: Changement organisationnel

Page: 27

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Industrial restructuring involves actions by enterprises to bridge gaps between their current performance and what is required to become internationally competitive. This paper examines the reasons for restructuring and oulines the policies and institutions needed to make it effective. The evolution of Bank lending for industrial restructuring is described, with lessons learned from past operations highlighted. The purpose of the paper is to provide guidance on the design and implementation of Bank supported industrial restructuring programs. The paper identifies key industry and trade policies; outlines elements of successful approaches to subsector and enterprise restructuring; and describes the financial instruments and institutions required to promote industrial restructuring.
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Revising Financial Sector Policy in Transitional Socialist Economies

Since the financial markets are underdeveloped and subject to many distortions, assessing the riskiness of ... where policy permits universal banks, bank supervisors either need to supervise all financial services activities, ...

Author: David H. Scott

Publisher: World Bank Publications

ISBN:

Category: Banks and banking

Page: 24

View: 358

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Theory and Practice of Policy Transfer in a Changing China

Banking Sector Reform as a Product of Transfer China is one of the fastest growing economies in the world and became the second largest economy in 2012. Given the pace of economic development it has had to underpin marketization with a ...

Author: Zhang Yanzhe

Publisher: Paths International Ltd

ISBN: 9781844644711

Category: Political Science

Page: 265

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This book aims to make a theoretical, empirical and prescriptive contribution to the contemporary study of policy transfer. In the first regard, it observes that despite bold claims to the contrary (see Dolowitz and Marsh, 1996; and Evans, ed., 2010), most studies of policy transfer are characterised by their mono-cultural understanding of the process of policy-oriented learning reflected in an obsession with the destination of transfer rather than its original policy setting or settings. This betrays an absence of strong comparative investigation of the process of learning. Moreover, existing approaches to the study of policy transfer networks (the process of policy learning) are limited by their narrow epistemological perspectives as in the main they tend to lend undue focus on actors, ideas/interests or structure. Following the work of Marsh and Smith on policy networks (2000), this book contends that these elements cannot be separately analyzed. It therefore advances an interactive model of policy transfer networks that investigates the process of learning through three interactive dimensions: between structure and agents, network and context, and network and outcome. The book's second main contribution - the presentation of original case study explorations of the role of policy transfer in facilitating the rise of the Quasi-Competition State. The book contends that policy transfer has become a key policy instrument in the process of transition from a command to a market socialist economy, and latterly to what may be termed a Quasi-Competition State. Indeed, in order to meet the perceived imperatives of state transformation, the 'Reform and Open Door' policy has been featured by a broad range of processes of policy learning. It is, however, beyond the scope of this book to present a comprehensive description and explanation of this complex and multi-faceted reform process, rather the aim of this account is to provide an examination of certain processes of policy transfer which are broadly indicative of the dynamics of change underpinning the incremental process of reform. The third and final contribution of this book lies in its identification of the ingredients of rational policy transfer which can hopefully help guide future Chinese policy-makers to more progressive policy outcomes.
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Financial Sector Policy and the Poor

Combating Prejudice and Discrimination A review of financial sector policy issues affecting the poor would not be complete ... Discrimination in Practice Tough legislation against lending discrimination is in place in the United States ...

Author: Patrick Honohan

Publisher: World Bank Publications

ISBN: 0821359673

Category: Business & Economics

Page: 77

View: 420

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This publication contains new empirical evidence on how financial sector policy can help in promoting pro-poor development and tackling poverty. It argues that microfinance and mainstream finance schemes should be regarded as complementary and overlapping rather than as competing alternatives, with the essential similarities between the two becoming more evident as individual microfinance firms, or associations of firms, grow to the scale needed for sustainability.
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