Sharia banking's characteristic, which underpins its activities on sharia principles, requires a customer protection mechanism in accordance with characteristics, including deposit insurance. This study aims to determine the readiness of banking regulations insurance Indonesia strengthen for Banking Customers. article is normative juridical research that applies an analytical descriptive approa...

The explicit or implicit protection of banks through government bail-out policies is a universal phenomenon. We analyze the competitive effects of such policies in two models with different degrees of transparency in the banking sector. Our main result is that the bail-out policy unambiguously leads to higher risk-taking at those banks that do not enjoy a bail-out guarantee. The reason is that ...

There is a substantial body of literature arguing that financial development (the growth of banking and financial intermediation) contributes to economic growth. This paper makes two contributions to this literature. First, drawing on the banking history literature, we use data on state bank-branching and deposit-insurance regulation as a source of plausibly exogenous variation in financial dev...

What ties together the traditional commercial banking activities of deposittaking and lending? We argue that since banks often lend via commitments, their lending and deposit-taking may be two manifestations of one primitive function: the provision of liquidity on demand. There will be synergies between the two activities to the extent that both require banks to hold large balances of liquid as...

An essential concern for banking firms is the problem of assets and liabilities managing (ALM). Over last years a lot of model tools were offered for solving this problem. We offer the novel approach to ALM based on transport equations for loan and deposit dynamics. Given the bank's initial state, and various deposit inflow scenarios the model allows provide simulations including stress-testing...

The success that banks have had deploying remote deposit capture has been tremendous over the past few years. The ability to decrease manual handling of checks and increases deposit breadth has certainly been a positive in what otherwise has not been the greatest of times in the banking community. However, as with any success along comes scrutiny. Echoes from the halls of Congress of not enough...

We demonstrate that the common view according to which an increase in competition leads banks to increased risk taking fails to hold in an environment where homogeneous loss averse consumers can choose in which bank to make a deposit based on their knowledge of the riskiness incorporated in the banks’ outstanding loan portfolios. With an exclusive focus on imperfect competition we find that ban...

The paper studies the factors associated with the emergence of systemic banking crises in a sample of developed and developing countries in 1981-94 using a multivariate logit econometric model. The results show that a weak macroeconomic environment with low growth and high inflation makes crises more likely; high real interest rates have also contributed to banking sector fragility, and so does...

Nation's banking network has an important role in aiming country's development goals due to the fact that nowadays banking and money has a sensitive and critical role in economic growth. Gathering and absorbing various kinds of deposits and allocating them to support financial needs are main purpose of the banking. In other words, banks are intermediates between depositors and facilities applic...

One of the great public policy concerns in the financial services arena is ensuring the stability of the U.S. financial system. One of the great threats to financial stability is disruption in the interbank market; that is, transactions between banks. These transactions consist of the exchange of payments by check or electronic means, usually through payment clearing mechanisms; the settlement ...