Narrow Your Choices

Refine By Topic

Refine By Series

Refine By Language

Refine By Date

—

Refine By IMF Taxonomy

Refine By JEL Taxonomy

Refine by LOC Taxonomy

Refine By THEMA Taxonomy

  • Print
  • Save

Middle East and Central Asia > Saudi Arabia

You are looking at 1 - 2 of 2 items for :

  • Type: Journal Issue x
  • Corporation and Securities Law x
Clear All Modify Search
Cover IMF Working Papers
How Does Bank Competition Affect Solvency, Liquidity and Credit Risk? Evidence from the MENA Countries
Raja Almarzoqi
,
Samy Ben Naceur
, and
Alessandro Scopelliti
The paper analyzes the relationship between bank competition and stability, with a specific focus on the Middle East and North Africa. Price competition has a positive effect on bank liquidity, as it induces self-discipline incentives on banks for the choice of bank funding sources and for the holding of liquid assets. On the other hand, price competition may have a potentially negative impact on bank solvency and on the credit quality of the loan portfolio. More competitive banks may be less solvent if the potential increase in the equity base—due to capital adjustments—is not large enough to compensate for the reduction in bank profitability. Also, banks subject to stronger competitive pressures may have a higher rate of nonperforming loans, if the increase in the risk-taking incentives from the lender’s side overcomes the decrease in the credit risk from the borrower’s side. In both cases, country-specific policies for market entry conditions—and for bank regulation and supervision—may significantly affect the sign and the size of the relationship. The paper suggests policy reforms designed to improve market contestability and to increase the quality and independence of prudential supervision.
Keywords:
WP; bank competition; bank regulation; Solvency; Liquidity; Credit Risk; Supervision; market share; bank market power; bank risk; liquidity position; incumbent bank; bank assets; bank liquidity; bank capital ratio; bank capital; bank portfolio; decisions bank; Competition; Bank solvency; Islamic banking; Nonperforming loans; North Africa; East Africa; Middle East; Global
Cover IMF Working Papers
Islamic Finance, Consumer Protection, and Financial Stability
Ms. Inutu Lukonga
Consumer protection and financial literacy are essential pillars of a well functioning and stable financial system. As the global financial crisis demonstrated, inadequate attention to consumer protection and financial literacy can lead to financial instability. Though Shari’ah principles provide a strong foundation for consumer protection, the principles alone cannot provide adequate protection because not all providers are guided by ethical precepts and the practices have deviated from the principles. To safeguard the stability of the Islamic finance industry, consumer protection frameworks that cater to the specifics of Islamic financial products should be an integral part of regulatory frameworks.
Keywords:
WP; consumer vulnerability; banking sector; central bank; investor confidence; Shari'ah-complaint Sukuk; Islamic Finance; Consumer Protection; Financial Stability; Sukuk holder; protection of Sukuk investor; investor protection; Shar'iah principle; liquidation process Sukuk; investor right; asset-backed Sukuk; consumer awareness; Islamic banking; Legal support in revenue administration; Deposit insurance; Global