Search results

This study aims to examine the prospects of using an online dispute resolution (ODR) platform for resolving relevant Islamic banking disputes in the usual banker–customer relationship in Malaysia. It is argued that through proper regulation, such innovative dispute management mechanism would not only address some legal risks associated with banking disputes but could also prevent reputational risks in the Islamic financial services industry.

Based on an internet survey, responses were obtained from about 109 respondents in Malaysia. The data obtained were subjected to multivariate statistical analyses considering factors such as access to justice, attitude of stakeholders, resolving disputes, practical issues and understanding of ODR.

The results obtained showed that “access to justice”, “attitude of stakeholders” and “resolving disputes” are the most influencing factors affecting the intention to use ODR among stakeholders, particularly customers and bankers in the Islamic financial services industry in Malaysia.

This study provides a way in which the recently introduced Islamic Financial Services (Financial Ombudsman Scheme) Regulations 2015 can be better enhanced to cater for internet banking disputes which might require an ODR framework.

Though there have been numerous studies on the dispute resolution framework in the Islamic banking industry in Malaysia generally, the current study focuses on a less explored framework – ODR– a new framework for handling banking disputes.

The purpose of this paper is twofold: first, it derives the optimal loan-to-value (LTV)-ratio for a mortgagor that maximizes the return to home equity when considering the capital structure of housing investment. Second, it analyses the demand-side contribution to mortgage market variability across monetary policy regimes.

The paper endogenizes both the relation between the LTV ratio and the mortgage rate and the relation between LTV and the rate of appreciation. When we consider LTV-variance and the demand-side contribution to mortgage market variability, three stylized regimes is considered.

The paper finds an intuitive ranking of the optimal LTV-ratios across regimes, and the optimal LTV-ratio peaks during a housing boom. When, however, monetary policy ignores asset inflation the demand-side contribution to market variability is highest during normal market conditions. Hence, there is a potentially hump-shaped relation between the risk exposure of individual mortgagors and the demand-side contribution to mortgage market variability.

The paper finds a potentially hump-shaped relation between the risk exposure of individual mortgagors and the demand-side contribution to mortgage market variability, which, to the best of our knowledge, is novel. The paper shows how macro-prudential and monetary policy are complementary tolls for preserving financial stability.

The purpose of this study is to explain rationale for regulatory change in Australia and New Zealand after the global financial crisis.

Outline regulatory changes and relate to crisis experience and regulatory shortcomings exposed.

Regulatory change was driven primarily by need, as capital importing nations, to comply with emerging global standards, and the different approaches in both nations are also related to domestic political considerations.

The process of regulatory change in response to the crisis is ongoing.

A number of areas for further improvement in financial regulation are identified.

Costs of poor regulation and financial crises are identified.

A comparison of regulatory approaches in two countries dominated by the same four large banks helps understand the challenges of cross-border financial regulation cooperation.

This study aims to examine the hypothesis that the effect of insurer risks on profitability is conditional on regulation, using two main regulatory directives in the Ghanaian insurance market as a case study.

This study used the robust ordinary least square and random effect techniques in a panel data of 30 insurers from 2009 to 2015 to test the research hypothesis.

The results suggest that regulations on no credit premium and required capital have insignificant effects on profitability of insurers. On the contrary, this study documents evidence that both policies mitigate the effect of underwriting risk on profitability and suggests that regulations significantly mitigate the negative effect of underwriting risk to improve profitability.

The finding suggests that policymakers and regulators must continue to initiate, design and model regulations such that they help tame risk to improve the performance of insurers in Ghana.

This study provides first-time evidence on the role of regulations in controlling risks in a developing insurance market.

Since monetary policy has great economic impacts, before the policy implementation, careful simulation combined with real economy movement condition can predict the policy implementation effect and reduce the cost of monetary policy implementation effectively. The paper aims to discuss these issues.

This paper selects the large commercial banks in China as the research objects, takes commercial bank capital adequacy requirement as the threshold constraint on the traditional monetary policy transmission path, and simulates the implementation effects of policy combination by applying computer technology.

It shows that the threshold effect of capital restriction policy will affect the transmission path of monetary policy, suppress the collective irrational behavior caused by the profit maximization behavior of commercial banks, and control the excessive fluctuation of macro economy.

If using capital adequacy constraints threshold function scientifically and appropriately, the paper can effectively eliminate the negative effect of short-term traditional monetary policy transmission mechanism, control the macroeconomic overall risk within a predetermined range, and realize the goal of monetary policy with low cost.

Based on the theory of credit rationing from Stigliz and Weiss, combining threshold factors of capital restraint policy with the traditional monetary policy transmission path, this paper examines that the policy combination may lead to the implementation effect. The method of simulation used in this paper has not been found in other literatures, and the results have strong implications to set up a reasonable and scientific macro-prudential banking regulation framework.

The purpose of this paper is to highlight the short run incentives for increasing LTV ratios that develop among mortgagees and mortgagors in the presence of excess return to housing. The paper provides a conventional framework for analyzing the capital structure of housing investments where higher LTV‐ratios comes about as stronger appreciation is met by increased mortgage rates and both mortgagees and mortgagors are short sighted.

The comment applies a capital structure approach to housing investments, highlighting the return to home equity. The paper distinguishes between price and leverage gains and presents a framework where the excess return to housing provides incentives for increasing LTV ratios. To illustrate, the Norwegian housing market is applied. The paper discusses short run market developments and the potential need for macro prudential regulations while introducing credit risk policy, nominal return targets and risk pricing.

The implementation of a simplistic capital structure approach to housing investments brings about a framework that allows us to present the incentives for, as well as the risk associated with, higher LTV ratios for both mortgagees and mortgagors. Short sightedness among mortgagees, driven by nominal return targets, allows mortgagors higher LTV‐ratios and increased risk taking.

While standard when analyzing commercial real estate, the capital structure approach – and the formal distinction between price and leverage gains for homeowners – is to the best of the authors' knowledge novel when analyzing housing finance. To understand the mechanisms impacting this playing field is important for both market analysts and regulators.

The purpose of this study is to investigate the effects of the global financial crisis on Gulf Cooperation Council (GCC) bank regulation and the impact on the region and the policies adopted by the regulators to avoid financial panic and contagion.

The author examines GCC countries’ financial soundness indicators in terms of capital adequacy, non-performing loans and provisioning rates, including central bank liquidity support, deposit guarantees, capital injections and monetary easing and policies to mitigate risk assessment, and the monitoring and elimination of practices promoting excessive risk. GCC compliance regimes through multinational organizations and the exposure of the region to cross-border financial linkages to test for financial soundness are assessed.

Overall, results indicate that comprehensive regulatory oversight exists in the GCC in conformity with international standards, and Basel capital adequacy requirements, and that the GCC regulators have acted prudently to establish high coverage in all measures but that gaps exit concerning cross-border surveillance and a need for imposition of capital surcharges on banks deemed high systemic risk. The supervision of Islamic financial institutions and a lack of inter-GCC liquidity support mechanism for this segment are highlighted.

The paper shows that the GCC regulators need to address cross-border surveillance, as local banks branch internationally and foreign banks operate in the region.

The author is not aware of any similar work that compares the regulatory policies of the GCC.