as well as two anonymous reviewers and senior editor Olav Sorenson. We also thank Sahangsoon Kim, Clare Lee, Michelle Ie, Daphne Teh, and Yuhanis Yusoff for research assistance and INSEAD for financial support. A Working Paper is the author's intellectual property. It is intended as a means to promote research to interested readers. Its content should not be copied or hosted on any server witho...

today, the country's banking system, according to the discussions to join the world trade organization is encountered with new challenges such as entry of foreign banks, emerging private banks and increasing the activities of financial and credit institutions. therefore, in order to survive and compete in this dynamic environment banking organizations require paying more attention to human...

The banking sectors in several Central and Eastern European countries are characterized by a two-tier structure, in which a few large banks dominate the deposit market but are very inactive in the loan market with private borrowers, while many small banks engage in lending but have only small shares of the deposit market. The large banks act as net lenders in the interbank market, while small b...

Central banks have long played a far larger role in policy-making than their legalmandates might imply. In recent years their power and influence have become even greater. Since the financial crisis, public banks around the world have taken on more direct responsibilities for financial supervision and regulation, and pushed monetary policy to new limits in order to stimulate the global economy....

This paper provides an introduction to macro stress tests and argues that these exercises could be an important part of enhanced macroprudential policies. Macro stress tests are executed by financial sector supervisors and central banks usually with (1) the aid of key financial institutions and (2) objectives that are different to those of stress tests run by financial firms for internal risk m...

 This paper investigates the financial stability, measured by z-score technique in Islamic banking system of 20 countries from 2000 to 2010. We compare the stability of Islamic banks to the commercial banks, before and after the financial crisis. The empirical results from panel estimation show that: a) the large Islamic banks are more stable than the large commercial banks and furthermo...

This paper examines the foreign financial institutions‟ spillover effects in China‟s banking sector through three channels, foreign strategic investment, employee turnover, and competition using qualitative analyses and quantitative analyses. Through comparing Chinese banks performance between preand postforeign strategic investment, and the OLS regression analyses, we found that the foreign st...

This study examines the effect of regulatory policy on efficiency under prudential framework among banks listed in the Iranian Securities and Exchange Organization over the period 2003 to 2015. Arellano-Bond estimation method has been patronized to investigate the effect of regulatory policies on efficiency. Results indicate that regulatory policy indicator indexing reserve requirement on inves...

tions of an independent developing nation. In this context, as in other developing countries, an important function of the Government and the CBSL was to promote the development of the country’s financial system. In the 1960s and 1970s, the major emphasis was on localising and expanding the financial system into remote areas with state support and participation. The Government intervened in the...