scholarly journals Taking Identity Seriously: When Identity Meets Regulation

2021 ◽  
Author(s):  
Mehmet Kerem Coban
Keyword(s):  
Political Economy ◽  
Financial Stability ◽  
Banking Sector ◽  
Banking Regulation ◽  
Vital Role ◽  
Social Identities ◽  
The Political ◽  
Policy Recommendations ◽  
Identity Problem ◽  
Multiple Identity

Financial stability is a public good. Banking regulation has a vital role to play in the provision and maintenance of financial stability. This article introduces a multiple identity approach to the regulation of the banking sector. It conceptualises bankers and regulators sharing a common social identity with the rest of the society, namely taxpayer identity besides their respective banker and regulator identities. The article underlines the balance between two social identities, and the reasons why bankers and regulators cannot achieve a balance between the two. Finally, motivated by the multiple identity approach on the political economy of banking regulation, the article discusses two major policy recommendations for regulatory design, at least, to partially address the multiple identity problem.

Risk Management in China's State Banks - International Best Practice and the Political Economy of Regulation

2008 ◽  
Vol 10 (1) ◽  
pp. 1-29 ◽  
Author(s):  
Stefan Brehm
Keyword(s):  
Political Economy ◽  
Risk Management ◽  
Financial Stability ◽  
Best Practice ◽  
Management Practices ◽  
Banking Sector ◽  
Banking Regulation ◽  
General Level ◽  
The Political ◽  
Minority Shareholders

The modernization of the banking sector, and particularly the big four state owned commercial banks, has a top priority on the Chinese reform agenda. Three of the four state banks found foreign strategic investors as minority shareholders and domestic banks now face more competition from global players since the country's WTO commitments came fully into effect at the end of 2006. A comprehensive approach to reform aims at pushing China's state banks into the league of global leading financial institutions within a few years time. But is this aim feasible despite prevalent state dominance? To shed light on the role and impact of the state in promoting sound risk management practices this paper focuses on the political economy of law implementation. Two main conclusions are drawn: (1) the direction of action is significantly different from reform outcomes due to weak incentives to enforce respective policies and as a consequence non-performing loan accumulation continues; and (2) on a more general level banking regulation in China illustrates that a normative approach based on international best practice is insufficient to address the issue of financial stability in many emerging and developing countries because it neglects the role of the institutional embeddedness of banking reform.

scholarly journals РЕГУЛЮВАННЯ ДІЯЛЬНОСТІ БАНКІВСЬКОГО СЕКТОРА У КОНТЕКСТІ ЗАБЕЗПЕЧЕННЯ ЙОГО ЕКОНОМІЧНОЇ БЕЗПЕКИ

2020 ◽  
pp. 91-98
Author(s):  
Плукар Л.А.
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
Banking Regulation ◽  
Economic Security ◽  
State Regulation ◽  
Crisis Prevention ◽  
Regulation And Supervision ◽  
Systemic Risks ◽  
National Banking System

The article substantiates the need to regulate the banking sector to ensure economic security of its operation. The main tasks of state regulation and supervision of the banking sector have been identified. The types of existing models of the institutional structure of the system of banking regulation and distribution of powers between prudential supervisors are revealed. Requirements for the development of a model of regulatory policy in the banking sector of Ukraine have been formed. The necessity of creating early crisis prevention systems (macroeconomic, based on warning indicators), monitoring of systemic financial institutions, application of macroprudential analysis with regular publication of a strategic document - the Financial Stability Report. The foreign experience of macroprudential regulation and supervision with the help of established specialized divisions of central banks on financial stability and security is reflected. The creation of a separate unit of financial stability and security in Ukraine was initiated, reporting directly to the Chairman of the NBU. The scheme of correlation of subjects of management and tools of maintenance of economic safety of national banking system with separation of subjects of management of economic safety of banking sector, tools of maintenance of economic safety of banking sector at the international and national levels of banking supervision is developed. The implementation of the principles of the Basel Accords in the activity of the banking system of Ukraine is determined as a determining factor in strengthening its financial stability and economic security. The issue of trust in the banking system is one of the main criteria for success, efficiency and security of the banking sector of the economy of each state. The need for monitoring and management of systemic risks has been proved.

scholarly journals Banking Competition and Efficiency in Jordan: A Note

2012 ◽  
Author(s):  
Khaldoun Al-Qaisi
Keyword(s):  
Financial Stability ◽  
Banking Sector ◽  
Banking Industry ◽  
Competitive Behavior ◽  
Policy Recommendations ◽  
Competitive Condition ◽  
Research Papers ◽  
Banking Competition ◽  
Structural Test ◽  
Over Time

The financial economics literature contains numerous research papers which examine issues that concern the banking industry. One of these issues is banking competition. Indeed, this issue is important because of its complications to financial stability and the growth of the borrowing firms. The purpose of this paper is to assess the competitive behavior of the Jordanian banking sector during the period ranging from 1999 to 2008 using the non-structural test developed by Panzar and Rosse. In more specific terms, this paper examines the overall competitive condition during the period 1999 – 2008 and how it has evolved over time. Based on the empirical findings, it is expected that a number of policy recommendations may be provided. The objective of these recommendations is to enhance the regulation of the banking sector in Jordan and improve their performance.  

scholarly journals Indian Banking Sector a Major Contributor to Economy: Constancy Major Concern

2019 ◽  
Vol 8 (4) ◽  
pp. 11596-11608
Keyword(s):  
Financial Stability ◽  
Impact Analysis ◽  
Banking Sector ◽  
Vital Role ◽  
Foreign Banks ◽  
Five Dimensions ◽  
Adequate Fund ◽  
Banking Institutions ◽  
Banking Stability ◽  
Asset Quality

Due to an intermediary role of banks in the economy, they hold a unique locus across all sectors with prudent lending policies, environmental impact analysis, and efficient credit approval systems. The banks play a vital role in the lending process which is dispatched along with the credit risk, that is, when the borrower fails to repay the money borrowed and fails to satisfy the obligations, then the asset is said to be bad or Nonperforming. A poor financial performance in an economy creates a distress in the economic stability leading to an economic crisis. The banking stability has a direct impact on the real output and employability which revolves around the financial stability of an economy. With the global initiatives undertaken, the Reserve Bank of India (RBI) developed Banking Stability Map and published the Financial Stability Report in 2010. It is measured using five dimensions of Stability Map, which are, Soundness(s), Asset Quality (Q), Profitability (P), Liquidity (L) and Efficiency (E).With the upsurge in the deteriorating asset quality and the financial health of banking institutions, lack of adequate fund and pressure of capital regulation makes the balance of stability in the Indian banking sector a challenge. The main objective of the study is to conduct a comprehensive review of all the possible dimensions of financial stability in the country across the Public Sector, Private Sector and Foreign Banks through Statistical tools from a time period of 13 years from 2005-2018. The statistical data and figures will be beneficial for the upcoming researchers and policymakers, as it displays an overview of the banking stability across the three main tiers of the banking world.

In Search of Financial Stability in Nigeria: From Legislation to Effective Regulation of Banks

2017 ◽  
Vol 25 (1) ◽  
pp. 20-46
Author(s):  
Nelson Ojukwu-Ogba
Keyword(s):  
Financial Institutions ◽  
Financial Stability ◽  
Banking Sector ◽  
Banking Regulation ◽  
First Century ◽  
Safety Level ◽  
Policy Shift ◽  
The Subject ◽  
Enforcement Mechanisms ◽  
Legislative Review

The systemic importance of banks in any economy brings to the fore the inevitability of exploring ways of keeping banks not only strong but also within the safety level desired by depositors and financial managers. This is underscored by the invaluable and fundamental roles of these financial institutions in the maintenance of financial stability. The state of banking regulation in Nigeria, especially before the introduction of reforms in the sector, had given serious cause for concern. This observation is in light of serious illiquidity and systemic distress that was synonymous with the banking sector in Nigeria in the 1990s and even into the opening years of the twenty-first century. This article examines in detail the legal and institutional frameworks for banking regulation in Nigeria. It finds that the challenge of ineffective regulation of the banks in the country may not necessarily be associated with the dearth or non-comprehensiveness of statutes on the subject but rather borders on uncoordinated and ineffective enforcement mechanisms, coupled with policy inconsistency on the part of banking regulators. This situation engenders confusion, uncertainty and instability because prospective investors tend to be more hesitant, depositors shy away from saving with banks and banks tend to have to grapple with persistent illiquidity when the system is unpredictable. The article therefore advocates a policy shift from legislative review to effective enforcement of the existing laws regulating banks in Nigeria in order to grow these financial institutions into transparent, efficient, strong and globally competitive institutions.

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