Until now, Islamic banking has grown very rapidly. This can be seen from the number of products that continue to grow and develop. One them is mudharabah deposit. The profit-sharing rate characteristic deposits public's appeal deposit their funds in banks, especially products. study aims determine effect financial ratios on profit sharing BPRS Indonesia. population used monthly reports all Indo...

The profitability of banks worldwide has decreased from the early 1980s to the 1990s. This has been attributed to several factors: the decline of traditional banking activities (deposit taking and lending), poorly performing debts (arising from poor lending decisions) and for domestic banks to factors such as depressed property prices and important local industrial sectors performing badly. How...

Most analyses of banking crises assume that banks use real contracts. However, in practice contracts are nominal and this is what is assumed here. We consider a standard banking model with aggregate return risk, aggregate liquidity risk and idiosyncratic liquidity shocks. We show that, with non-contingent nominal deposit contracts, the first-best efficient allocation can be achieved in a decent...

During some recent financial crises, the majority of domestic banks or indeed the entire banking sector became insolvent. We have analyzed the welfare effects of policy responses to bank insolvency by examining a modified version of the Diamond-Rajan model, introducing a fiat currency. The sources of inefficiency in our model are the ”moral hazard in banking” and the “premature liquidation of b...

Abstract How does the shadow banking system respond to changes in capital regulation of commercial banks? We propose a quantitative general equilibrium model with regulated and unregulated banks study unintended consequences regulation. Tighter requirements for cause higher convenience yield on debt all banks, leading bank leverage larger sector. At same time, tighter eliminates subsidies from ...

This study employs the asymmetric threshold cointegration test suggested by Enders and Siklos (2001) and creates EC-EGARCH(1, 1)M model to investigate the pass-through of money market rate to banking retail rates in Taiwan and Hong Kong. It further explores the impact of interest volatility on interest rates. Over the period of February 1988 to December 2004, we find that the interest pass-thou...

This paper describes and evaluates the deposit insurance scheme set up by private commercial banks in Germany in 1975. Unlike schemes in other countries, its funding and management is completely private, without any public supervision. While other schemes rely on monitoring by depositors to decrease moral hazard problems, the German scheme relies on peer monitoring by its member banks. This pap...

Interconnection pricing in network industries that discriminates between affiliated and unaffiliated consumers is a form of partial incompatibility. This paper measures the magnitude of the effects this incompatibility has on competition, welfare, and investment in the retail banking industry, where banks’ ATM networks are connected to one another and unaffiliated consumers face interconnection...

We examine the liquidity shocks to banks that can arise during a crisis due to concerns about safety by uninsured depositors. The analysis exploits exogenous changes in the deposit insurance threshold and a unique dataset with detailed information on balances and depositor characteristics for every bank account in Denmark. Our key result is that lowering the deposit insurance threshold during a...