The global financial crisis of 2007-2009 exposed critical weaknesses in the financial system. Many proposals for financial reform address the need for systemic regulation--that is, regulation focused on the soundness of the whole financial system and not just that of individual institutions. In this paper, we study one particular problem faced by a systemic regulator: the tension between the di...

Retail certificates of deposit provide financial institutions with funds and depositors with income. Because interest rates and terms on deposits vary, understanding the reasons for the variation should help participants in this market make better decisions. This study explores interest rates and terms on deposit offerings from banks and thrifts while controlling for risk, service, and demograp...

Moral hazard is one of the most basic concepts in economics: If someone pays you for your accidents, you will expend less effort trying to avoid them. Insurance companies understand this perfectly well. That's why most insurance contracts include customer deductibles and limited coverage. This seems straightforward enough. Why is it, then, that policymakers appear to have missed this important ...

banks play important roles in promoting national development. in order to provide efficient services and to perform their statutory roles effectively, banks are required to comply with established standards. in nigeria, the statement of accounting standards (sas), companies and allied matters act (cama) and the central bank of nigeria’s directives and regulations provide guidelines to banks in ...

Nowadays, internet technology provides an opportunity for banks and financial institutions to take advantages in dynamic and competitive turbulent environment in their favor. In addition, considering the importance and status of internet banking and growing trend of it in the country in recent years, now banks and financial institutions have found that maintaining status and effective developme...

This paper discusses Islamic banking and its relationship with financial institutions other businesses in Indonesia. Banks have a role as Financial Intermediaries whose function is to collect funds from the public channel them back those who need funds. The main activity of banks provide financing customers, where these activities are related institutions. research library (Library Research) th...

It has become commonplace to call the financial institutions at the centre of the most recent financial crisis ‘too big to fail’. This is a misnomer, as institutional size simply happens to be correlated with what really matters: interconnectedness. A big bank that operates in a vacuum is a danger only to itself and its immediate creditors. If it assumes too much risk, it will fail, and the eco...

The potential impact of interconnected financial institutions on interbank financial systems is a financial stability concern for central banks and regulators. A number of algorithms/methods have been developed to extrapolate latent interbank risk exposures. However, most use highly stylized network models and reconstruction methods with global optimality lending allocation approaches such as m...

The recent crisis has highlighted the crucial role that existing linkages among banks and financial institutions plays in channeling and amplifying shocks hitting the system. The structure and evolution of such web of linkages can be fruitfully characterized using concepts borrowed from the theory of (complex) networks. This paper critically surveys recent theoretical work that exploits this co...

One characteristic which may distinguish banks from other financial institutions is the role of relationships between the bank and its borrowers. These firm-lender relationships can help resolve market failures and thus provide a role for banks. This paper describes the theoretical role of lending relationships in financial markets. Relationships can generate useful information as well as be us...