This paper explores some of the issues that arise in the regulation of Islamic capital market products and services. As many of the products are distributed to retail clients by Islamic banks and through the Islamic windows of conventional banks, it is also pertinent to deal with the regulation of these institutions, not least because of the distinctive liability and asset structures of Islamic...

The market for U.S. Treasury securities is by many measures the largest, most active debt market in the world. At the end of September 1999, the amount of Treasury debt held outside federal government accounts totaled about $3.6 trillion, close to the amount of outstanding debt securities issued by all U.S. corporations combined.1 Moreover, enormous amounts of Treasury securities are traded eve...

Conventional wisdom suggests that high-reputation banks will generally produce good securities to maintain their long-run reputation. We show with a simple model that, when securities are complex a high-reputation bank may produce assets that underperform during market downturns. We examine this possibility using a unique sample of $10.1 trillion of CLO, MBS, ABS, and CDOs. Contrary to the conv...

Sec. 356.0 What authority does the Treasury have to sell and issue securities? 356.1 To which securities does this circular apply? 356.2 What definitions do I need to know to understand this part? 356.3 What is the role of the Federal Reserve Banks in this process? 356.4 What are the book-entry systems in which auctioned Treasury securities may be issued or maintained? 356.5 What types of secur...

We provide direct evidence regarding the risk and reputational capital implications of commercial bank securities underwriting activities. Using a large sample of commercial bank underwritten initial public offerings (IPOs) and comparisons with investment bank underwritten issues, we find that (1) commercial banks are no more likely to misprice IPOs than are traditional investment banks, and (2...

this paper tries to evaluate the nature of open market operation in the conventional banking system and to compare the usage of government securities and central bank securities for conducting this operation. in addition, the experience of the iranian central bank in using central bank musharakah certificates is reviewed. the main results of the paper, derived from an analytical- descriptive ap...

by Jeffery W. Gunther and Anna Zhang The banking industry’s treatment of loans has undergone a dramatic transformation over the past two decades. While maintaining their traditional role in originating loans and holding them on their books, banks have become more likely to create and sell securities backed by pools of loans and other debt instruments. Banks’ adoption of the “originate-to-distri...

Trading desks at investment banks often have substantial positions in a broad range of long-term or exotic derivative securities which can be marked to market only by means of mathematical models. Verifying the fair value of these securities is an increasingly important issue, and involves more than just mathematics and a model. It requires software, skill and common sense, all embedded in a su...

Under state and Federal law, commercial banks are required to hold government securities as a reserve against government deposits. While these pledging requirements are potentially important links between the asset and liability sides of a bank's portfolio, they have largely been ignored in the professional literature. This omission cannot be justified even if pledging requirements have no effe...

* Vice President, Chase Securities Japan Ltd. This Article does not represent the views or opinions of Chase Securities. This Article contains statements which are based on author's personal experience and knowledge gained from dealings with Indonesian attorneys, bankers, and entities. ' Michael S. Bennett, Banking Deregulation in Indonesia, 16 U. PA. J. INT'L BUS. L. 443 (1995). 2 In October 1...