Anti–crisis Mechanisms of Qatar: Economic Diversification, Digitalization, Transformation

The Qatar National Vision 2030 program is based on two principles — modernization and preservation of traditions. Blockade of the country in 2017–2020 and the coronavirus pandemic became a serious test for the economy of Qatar, but the government and residents of the country do not consider themselves defeated by these circumstances, but on the contrary, these circumstances helped the country’s economy to survive the above crises. In 2019, the International Monetary Fund said that Qatar’s economy was resilient in the face of the blockade and shocks caused, including by the fall in hydrocarbon prices in 2014–2016. The events of the global economic crisis caused by the pandemic have posed another challenge to the financial and banking system of Qatar. Thanks to the measures of the country’s government aimed at ensuring business continuity, maintaining liquidity and providing support to the sectors of the economy affected by the pandemic, it was possible to mitigate the impact of this shock, support cash flows, and achieve financial and banking stability in the country. However, according to fund analysts, COVID–19 and a sharp drop in hydrocarbon revenues will lead to a reduction in real GDP growth by 2% in 2020. At the same time, future profits from hosting the FIFA World Cup in 2022, continued expansion of capacities in production of liquefied gas and competent fiscal and monetary policy will contribute to economic growth in the country in the medium term.

Akibat Hukum Pada Pemisahan Simpanan Dari Nasabah Bank Saat Likuidasi Untuk Memperoleh Jaminan Dari Lembaga Penjamin Simpanan

Abstrak. Penelitian dalam artikel ini menjelaskan tentang adanya celah hukum yang terkait dengan kontrak penjaminan simpanan LPS terhadap syarat dan ketentuan penjaminan simpanan nasabah. Praktiknya perilaku pemecahan dana simpanan belum ada aturan lebih lanjut, sehingga muncul pertanyaan apa akibat hukum pemecahan dana simpanan oleh nasabah BDL untuk dapat penjaminan dari LPS. Artikel ini adalah penelitian hukum dengan memakai pendekatan perundang – undangan dan pendekatan kasus. Teknik analisis memakai metode interpretasi gramatikal dan sistematis. hasil penelitian ini, penulis berpendapat pemecahan dana simpanan oleh nasabah BDL untuk dapat penjaminanan dari LPS adalah tindakan nasabah yang diuntungkan secara tidak wajar, sesuai pasal 19 ayat (1) huruf b Undang Undang tentang LPS dan terdapat unsur pidana penipuan, tindak pidana di bidang perbankan, dan tindak pidana ekonomi. Akibat hukum pemecahan dana simpanan oleh nasabah BDL untuk dapat penjaminan dari LPS, yaitu hak nasabah (nasabah yang tidak melakukan tindak pemecahan dana simpanan untuk mendapatkan penjaminan dari LPS ) untuk mendapat penjaminan simpanan secara adil, hak LPS untuk tidak melakukan (omission) membayarkan penjaminan simpanan nasabah yang melakukan pemecahan dana simpanan, dan hak pemerintah untuk melakukan (commission) menjaga stabilitas perbankan dari tindakan pemecahan dana simpanan oleh nasabah dengan tujuan dijaminkan simpanannya. Abstract. The research in this article describes the existence of legal loopholes related to the LPS deposit guarantee contract against the terms and conditions of customer deposit insurance. In practice, there is no further regulation on the behavior of splitting deposit funds, so the question arises what are the legal consequences of splitting deposit funds by BDL customers to obtain guarantees from LPS. This article is a legal research using a statutory approach and a case approach. The analysis technique uses a grammatical and systematic interpretation method. the results of this study, the authors argue that the breakdown of deposit funds by BDL customers to obtain guarantees from LPS is an act of customers who benefit unreasonably, according to article 19 paragraph (1) letter b of the Law on IDIC and there is an element of criminal fraud, criminal acts in the banking sector , and economic crimes. The legal consequences of splitting deposit funds by BDL customers to obtain guarantees from LPS, namely the right of customers (customers who do not perform the act of splitting their deposit funds to obtain guarantees from LPS) to obtain a fair deposit guarantee, the right of LPS not to (omission) to pay deposit guarantees customers who split their deposit funds, and the right of the government to undertake (commission) to maintain banking stability from the act of splitting their deposit funds by customers with the aim of securing their deposits.

BANK CONCENTRATION AND BANKING STABILITY: EVIDENCE FROM EAGLE GROUP

The study was conducted to assess the impact of the banking sector's concentration on the banking system's stability in Emerging and growth-leading economies (EAGLEs). In addition, the study also analyzed the role of macroeconomic factors in bank stability. By applying Bayesian multivariate linear regression, the posterior probability results show that money supply growth and credit growth erode the soundness of the banking system. On the other hand, economic growth helps to improve banking stability, but this effect is not obvious; surprisingly, inflation also increases the banking stability of the Emerging and growth-leading economies. Finally, the study shows that the equity ratio to total assets has a reverse relationship with bank stability. Due to data limitations, this study has not yet examined the role of macroprudential policy instruments in maintaining banking stability. Hence, in future studies, besides the factors considered in this study, we should focus on analyzing the impact of macroprudential policy instruments on banking stability.

Measurement and analysis of factors that affecting the financial stability of private banks registered in the Iraq Stock Exchange for the period (2017-2013): قياس وتحليل العوامل المؤثرة في الاستقرار المالي للمصارف الأهلية المسجلة في سوق العراق للأوراق المالية للمدة (2013-2017)

The objective of this study was to measure the banking factors (capital adequacy, credit capacity, and revenue capacity) and to show their impact on the banking stability of the private banks registered in the Iraq Stock Exchange. Where the bank credit represents the most important source of bank money in terms of achieving profits and the most exposed to risks, which is reflected in the bank’s business and its financial indicators. Also, achieving ratio (adequacy of banking capital) corresponded with the guidelines of the Basel Committee for is one of the top concerns of the banking administration. Each of the (z_score) and multiple linear regression models were used to measure the stability of banks and calculated the impact of the study variables on financial stability. The research sample consisted of (6) private banks, these banks are apart of 44 private banks of registered in Iraq Stock Exchange which are operating in Iraq. The research reached to set of conclusions, including that achieving financial stability for banks depends mainly on strengthening the adequacy of capital and then its ability to achieve profits. Also, the research recommended that banks implement the decisions of the Basel Committee (first, second and third) that contribute to enhancing the financial stability of banks.

Do Deposit Insurance Systems Promote Banking Stability?

During the global financial crisis (GFC), regulators and policymakers turned to deposit insurers, along with monetary and fiscal measures, to help restore market confidence and promote financial stability. These events have focused attention on the role of deposit insurers and their role in the banking system. Recent literature reveals that during the GFC, deposit insurance maintained banking stability and successfully prevented customers doing ‘runs’ on the banks. The objective of this paper is to examine the deposit insurance system’s coverage limits and the impact on banking stability, in the context of a jurisdiction’s economic and institutional environment. Our model examines 61 jurisdictions in Asia and Europe with explicit deposit insurance systems, covering the pre- and post-GFC period between 2004 and 2014. We also examine subsets to investigate the effects of the region by comparing Asia and Europe, as well as a subset using the date of establishment of the deposit insurance system to understand if maturity matters. The results indicate that deposit insurance systems, and specifically deposit insurance coverage levels, have both positive and negative effects on banking stability. We find significant associations with certain economic and institutional factors; however, there are differences between the models we ran. These can be ascribed to regional factors and the date of when a deposit insurance system was established.

The Power of Delay: Banking System Structure and Implementation of the Basel Accords

Recent developments in the international banking system, especially the 2007–9 crisis and subsequent wave of postcrisis regulation, have drawn increasing attention to the structural power of banks and banking systems. States need a functioning financial system to ensure the overall health of their economies, so states must shape policy to protect their financial firms. National financial systems may be dominated either by banks or by capital markets. In states where banks dominate provision of capital, states must shape policy to protect their banks because of their structural importance, independent of any lobbying or other direct action on the part of banks to exercise instrumental power. The entangling of structural and instrumental power means studying differences in structural power requires either careful case-study work or cross-national comparison of responses to a common shock. The implementation of the 2011 Basel III Accords provides just such an opportunity. This article offers a quantitative analysis of a new dataset of implementation of Basel III components in the Basel Committee on Banking Stability member states from 2011 to 2019 and demonstrates the structural power of banks in bank-based systems to accelerate implementation of favorable policies and slow implementation of unfavorable ones.

Relationship between financial inclusion, banking stability and economic growth: a dynamic panel approach

PurposeThe purpose of this paper is to analyse the relationship between financial inclusion, banking stability and economic growth in sub-Saharan African countries given the interconnectedness between them. Globally, financial inclusion has gained recognition as a critical channel for promoting economic growth by bringing a large proportion of the unbanked population into the formal financial system. This cannot be achieved exclusive of the banking sector.Design/methodology/approachThis paper focussed on 18 countries in sub-Saharan Africa. Data on financial inclusion and the economy were obtained from the World Bank, and bank soundness indicators data were also obtained from International Monetary Fund covering the 11-year period from 2008 through 2018. Panel system generalised method of moments is employed for the regression analysis because it has the capability to produce unbiased and consistent results even if there is endogeneity in the model.FindingsThe results show that economic growth drives banking stability and not vice versa; confirming a unidirectional causality from gross domestic product to banking stability. So, this study finds support for the demand-following hypothesis. The paper further observed that financial inclusion positively and significantly influences the stability of banks and economic growth. The study established that bank capital regulation negatively influences banking stability in sub-Saharan African countries.Research limitations/implicationsThis study does not capture the unique country-specific relationship.Practical implicationsThe policy implication is that policymakers in sub-Saharan African countries should focus on growth-enhancing policies that improve the level of financial inclusion. The central banks in sub-Saharan African countries should take advantage of the positive effect of financial inclusion to develop regulatory frameworks and policies that make it attractive for banks to continue to expand their operations to the unbanked.Originality/valueThis is, as far as the authors know, the explanation of the interconnection of financial inclusion, banking stability and economic growth in sub-Saharan Africa.