Earlier this year, European authorities agreed on the second pillar of the banking union, a single resolution mechanism, to come into effect in 2016. After the ECB taking over responsibility for bank supervision (directly for the largest, indirectly for all banks) in the Eurozone, centralizing resolution as complement for centralized supervision has been an important next step. The result is a ...

Small Medium Enterprises (SMEs) have significant role in employment creation and growth of gross domestic products of developing country. In the case of Indonesia, SMEs account for more than 90 percents of all company and in employment [1]. However, in order to grow and contribute more significantly to the economy, SMEs face some constraints. One of the main constraints faced by SMEs is the lac...

This paper develops a quantitative, monetary model in which agency problems affect both the relationship between banks and firms as well as that linking banks to their depositors. As a result, bank capital and entrepreneurial net worth jointly determine aggregate investment, and help propagate over time shocks affecting the economy. We find that the effects of monetary policy shocks depend on t...

In contrast to the U.S. where universal banking has been legally prohibited, the Second Banking Directive allows European banks both to form financial conglomerates and hold equity stakes in non-financial companies. This paper analyzes the cost and profit efficiency of European financial conglomerates and universal banks. We find that conglomerates are more revenue efficient than their speciali...

After the accession of the candidate countries to the European Union in 2004, the European Central Bank will need to pursue monetary policy in an enlarged euro zone. I empirically investigate the role of banks in monetary policy transmission in the accession countries. Banks are of major importance for the financing of firms and thus the adjustment of their lending in response to monetary polic...

This study aims to explain the effect of compliance with sharia principles on financial performance and its implications for Islamic social responsibility. type research is descriptive verification. The data used annual report commercial banks in Indonesia. Data analysis using SEM PLS. results indicate that has an Through performance, prove carrying out their operational activities absolutely m...

This article examines the unique risks associated with Islamic financial institutions and the secular state’s reticence to directly regulate their religious dimension. It argues that the state’s method of regulating the Islamic financial industry ignores special reputational risks associated with the religious and cultural distinctiveness of Islamic banks. The Financial Services Authority (FSA)...

The paper examines the impact of CSR on financial performance banks operating in Republic Serbia. research was conducted example seven for period from 2006 to 2019, using panel data analysis. Parameter estimates were obtained three different estimators, Pooled OLS, fixed effects method, and random method. results show that two dimensions have a statistically significant banks; environmental res...

Islamic banks should actively engage in Corporate Social Responsibility (CSR) activities as part of their moral obligations to contribute society and surroundings. This study aims investigate the influence Zakat contribution, a proxy CSR, on financial performance Malaysia. The used panel-data analysis, whereby annual reports 11 local Malaysia were analyzed over ten-year period from 2010 2019. F...