Islamic finance has emerged to meet the financial needs of people who seek a different approach to conventional banking and finance. Due to its late inception, Islamic finance has often been regarded as an "infant industry" compared to its traditional counterparts. Even though the Islamic finance industry is still classified as nascent, it has shown rapid growth in the last decade or so. The primary objective of this book is to highlight the main issues and challenges the Islamic finance industry faces and to offer practical solutions. Firstly, the book classifies the main components of Islamic finance such as money and banking, capital markets, fintech, microfinance, insurance as well as morality and governance. Secondly, all of the chapters are combined according to their relationship and link with each other so as to provide readers with a unique and holistic overview of the subject. The chapters are written by well-renowned experts in the field. As well as offering readers theoretical information about each subject under discussion, it also advances practical solutions that can contribute to the development of each field. The book answers questions such as how money is created by banks; what the business model of Islamic banking should look like; whether Islamic microfinance institutions are sustainable; what the likely framework of takaful should be; what the potential role of fintech could be in reshaping the Islamic financial system, and where and whether morality fits in the financial system. The book will attract the attention of students, researchers, practitioners, regulators and policymakers.

This book demonstrates the variation in the reaction of the UK's 'big four' banks - RBS, Lloyds, Barclays and HSBC - to the Great Financial Crisis 2008. Over a decade on from the financial crisis, this book asks: have banks in the UK learned lessons from the crisis? Bank learning in the UK after the Great Financial Crisis is something we need to know more about. Whether banks are now safer and more likely to aid rather than disrupt the economy are important questions of social relevance. Through a documentary analysis of Britain's 'big four' banks in the post-crisis decade (2008-2018), this book demonstrates that while some institutions have become more risk averse and display positive signs of learning, others have shown little evidence of change. The book uses notions of agency, path dependency and structural competitive pressures to explain these inter-bank variations of behaviour. This book contributes to wider post-crash structural debates about growth, markets, and regulatory reform, showing how the agency of banks has played a vital role in driving the reform process.

Environmental finance and green banking are central drivers of the transition to a sustainable economy and essential components in solutions to climate change. This book presents the latest research on theory and practices in these interdisciplinary fields, incorporating both public and corporate finance. It introduces three parts - environmental investing and financing, green banking and environmental policies in the public sector. The book explores the current trends, dynamics and ways forward for environmental finance and green banking, including fundamental theories (e.g., environmental Kuznets curve) and comparisons between traditional and green bond efficiency, corporate governance practices and disclosure, green central banking, climate finance, sustainable strategies, green Islamic banking, and public climate fund management in multi-country context. The contributors to this book highlight significant challenges ahead while recognizing potential opportunities, such as the revolution in green investments and trading in green bonds. This book is a welcome addition to the literature on environmental economics and finance and the economics of sustainability and climate change.

Islamic finance refers to methods of undertaking banking and financial transactions that are in conformity with the precepts of Islam. As such, the system offers a challenge to conventional Western ways of thinking about financing. This indispensable set of papers brings together the most important previously published papers on the subject of Islamic Finance from the last four decades. Issues explored include: the prohibition on interest; financing instruments; accounting and regulatory issues; institutional structures and recent developments.

Monetarism is dead! Central bankers are all Wicksellians now! They target low inflation rates, with no regard to monetary aggregates whatsoever, by acting upon short-term real rates of interest. This is the New Consensus in monetary economics, or simply the New Keynesian Synthesis. Yet, this synthesis still hinges on variants of the long-run vertical Phillips curve originally proposed by Milton Friedman, the father of old-line monetarism. Contributors to the volume question this New Consensus. While they agree that the money supply should be conceived as endogenous, they carefully examine the procedures pursued by central banks, the monetary policy transmission mechanisms suggested by central bankers themselves, and the assumptions imbedded in the New Consensus. They propose alternative analyses that clearly demonstrate the limits of modern central banking and point to the possible instability of monetary economies. Heterodox and orthodox monetary macroeconomists alike will find this illuminating book of great interest.

Credit and credit risk permeates every corner of the financial world. Previously credit tended to be acknowledged only when dealing with counterparty credit risk, high-yield debt or credit-linked derivatives, now it affects all things, including such fundamental concepts as assessing the present value of a future cash flow. The purpose of this book is to analyze credit from the beginning the point at which any borrowing entity (sovereign, corporate, etc.) decides to raise capital through its treasury operation. To describe the debt management activity, the book presents examples from the development banking world which not only presents a clearer banking structure but in addition sits at the intersection of many topical issues (multi-lateral agencies, quasi-governmental entities, Emerging Markets, shrinking pool of AAA borrowers, etc.). This book covers: * Curve construction (instruments, collateralization, discounting, bootstrapping) * Credit and fair valuing of loans (modeling, development institutions) * Emerging markets and liquidity (liquidity, credit, capital control, development) * Bond pricing (credit, illiquid bonds, recovery pricing) * Treasury (funding as an asset swap structure, benchmarks for borrowing/investing) * Risk and asset liability management (leverage, hedging, funding risk)

Setting forth the building blocks of banking bailout law, this book reconstructs a regulatory framework that might better serve countries during future crisis situations. It builds upon recent, carefully selected case studies from the US, the EU, the UK, Spain and Hungary to answer the questions of what went wrong with the bank bailouts in the EU, why the US performed better in terms of crisis management, and how bailouts could be regulated and conducted more successfully in the future. Employing a comparative methodology, it examines the different bailout and bank resolution techniques and tools and identifies the pros and cons of the different legal and regulatory options and their underlying principles. In the post-2008 legal-regulatory architecture financial institution specific insolvency proceedings were further developed or implemented on both sides of the Atlantic. Ten years after the most recent financial crisis, there is sufficient empirical evidence to evaluate the outcomes of the bank bailouts in the US and the EU and to examine a number of cases under the EU's new bank resolution regime. This book will be of interest of anyone in the field of finance, banking, central banking, monetary policy and insolvency law.

This book examines the history of what became one of Portugal's largest banks, the Caixa Geral de Depositos. The bank was founded in 1876 by the state to run public deposits, and evolved into a savings bank, catering for both public and private deposits. Its history goes beyond the history of banking, as it ties in with the role of the state in the banking sector and financial markets. The book weaves in and out of different political and international contexts, following the many changes of the Portuguese political regime and of its interactions with the national and international economy. The most important lesson from the study is that publicly owned institutions can compete successfully with the private sector when they simultaneously cater for the interests of policy makers as well as those of the public, in this case, the depositors. The history of the Caixa Geral de Depositos therefore shows how the state of a peripheral economy is capable of successfully managing a large financial institution when the right set of incentives is in place. This work will be a valuable resource for researchers and students of financial and economic history at both the advanced undergraduate and postgraduate levels. It will also provide interesting insights for practitioners in the financial sector.

This book sheds new light on a recently introduced monetary tool - negative interest rates policy (NIRP). It provides in-depth insight into this phenomenon, conducted by the central banks in several economies, for example, the Eurozone, Switzerland and Japan, and its possible impact on systemic risk. Although it has been introduced as a temporary policy instrument, it may remain widely used for a longer period and by a greater range of central banks than initially expected, thus the book explores its effects and implications on the banking sector and financial markets, with a particular focus on potentially adverse consequences. There is a strong accent on the uniqueness of negative policy rates in the context of financial stability concerns. The authors assess whether NIRP has any - or in principle a stronger - impact on systemic risk than conventional monetary policy. The book is targeted at presenting and evaluating the initial experiences of NIRP policy during normal, i.e. pre-COVID, times, rather than in periods in which pre-established macroeconomic relations are rapidly disrupted or, specifically, when the source of the disruption is not purely economic in nature, unlike in systemic crisis. The authors adopt both theoretical and practical approaches to explore the key issues and outline the policy implications for both monetary and macroprudential authorities, with respect to negative interest rate policy, thus the book will provide a useful guide for policymakers, academics, advanced students and researchers of financial economics and international finance.

This book uniquely explores the role and governance mechanism of central banks by applying new institutional economics (NIE). Simultaneously, the book tests the analytical viability of NIE when applied to an organization that has both public and private characteristics. Special attention is paid to the Bank of Japan (BOJ) based on the author's 30 years of work experience and "participant observation" there, touching upon discussion of central bank independence. The book argues that central bank independence cannot be defended solely by law, and a mechanism to eliminate requests from politicians needs to be embedded within the governance structure. The book also provides a comparative analysis between the BOJ and central banks in Europe and the USA. In reviewing the global financial crisis of 2008-2009, it suggests possible measures based on behavioral economics and public choice theory. These theory-based analyses provide useful insights when considering matters such as whether a central bank should issue electronic money or the European system of central banks could be established in Asia.

Banking, foreign exchange, bonds, equities and insurance services are now provided through an increasingly global marketplace. In financial services, as in other activities, globalization can be seen as a process opening up national economies and markets, widening the extent and form of cross-border transactions, deepening the international character of productive activity. As such, globalization is propelled by liberalization of trade and deregulation of capital markets, underpinned by technological change which is lowering communication and transport costs and enhancing the international tradeability of services.This volume brings together a range of articles examining the nature of globalization in financial services and the implications of the internationalization process for financial and regulatory policies. Contributions range from early analyses by Milton Friedman of the Eurodollar market, Harry Johnson of regional financial centres and Herbert Grubel of multinational banking to more recent studies examining the stock market crash of 1987, the globalization of payment systems and the financial collapse of BCCI and Barings. The 38 articles are divided into six sections covering trade in financial services, multinational banking, Eurocurrency banking, offshore services, exchange and securities and regulatory issues.

This edited collection seeks to advance thinking on money and the monetary nature of the economy, macroeconomic analysis and economic policy, setting it within the context of current scholarship and global socioeconomic concerns, and the crisis in the economics discipline. A key aim is to highlight the central contribution that Sheila Dow has made to these fields. Bringing together an impressive panel of contributors, this volume explores topics including central bank independence, liquidity preferences, money supply endogeneity, financial regulation, regional finance and public debt. The essays in this first collection of two will be thought-provoking reading for advanced students and scholars of macroeconomics, monetary economics, central banking and heterodox economics. Contributors have a broad range of professional experience at universities, central banks, business, development institutions and policy advisories.

This edited volume showcases how the European cooperative banks have continued to evolve amid a new competitive scenario that resulted from the Global Financial Crisis started in Europe in 2008. The cooperative banking paradigm has been put under an unprecedented pressure as a consequence of factors such as the exceptionally low interest rates set by the European Central Bank, low profitability generated by traditional banking services-which are the backbone of the cooperative banking business-and the entrance of fintech companies into the banking market. Furthermore, tightening regulation since the beginning of the crisis has produced an increased capital and liquidity burden which in some cases have forced cooperative banks to reduce lending to their members and customers, putting under question the traditional countercyclical role of cooperative banks in periods of crisis. For these reasons, it is of the utmost value to observe and analyse how cooperative banks have been reacting in the attempt to preserve their unique business model and, at the same time, to keep providing credit to the economy. A number of scholars active in the cooperative banking sector have been involved in this edited volume as contributors.

The author provides a theoretical framework of the global political economy of banking regulation and analyses the policies and politics of the Basel Committee on Banking Supervision. He demonstrates how global governance has contributed to the onset of the Great Recession and continues to increase the likelihood of future global financial crises.

This book explores the idea that Europe's growth problems may be caused by weaknesses in capital markets and in the access to risk capital. It addresses the evaluation of the financial needs and constraints of start-up firms and how these might be bridged. The role of public sector intervention is analyzed, focusing on international best practices.

This book gathers selected papers presented at the International Scientific Conference "Economics in the Changing World," held on June 26-27, 2018 at the Institute of Management, Economics and Finance of Kazan Federal University (Kazan, Russia). The conference featured contributions by leading specialists in the field of management, territorial development, and state, regional and municipal management, covering the modern trends in the development of economic complexes and firms, economics of innovative processes, social policy, financial analysis, and mathematical methods in economic research. The book highlights new approaches for the development of various sectors of the Russian economy and individual markets, as well as for the efficiency of entrepreneurship in general. It also analyzes the concept, meaning and directions of the socio-economic development of the regional subjects in the Russian Federation. The scientific studies included make a significant contribution to the development of entrepreneurship, regional management, rationalization and optimization of resource use, state territorial administration, and sustainable economic growth in the regions and the transport infrastructure.

This book presents an innovative history of the first Portuguese public bank, by exploring the relationship between banking activities and the political context. It provides an overview of the origins of the banking system in Portugal, and also in Brazil, and explores new archive materials related to the first years of activity of the Bank of Lisbon and to the public debates on monetary and public finance topics. It discusses the main features of the Bank of Lisbon: a private bank with a mandate to issue banknotes for the purposes of regulating monetary circulation, and with the function of financing the State for current payments, as well as for the amortisation of public debt and the creation of new debt. The aim of contributing to the re-establishment of public trust and credit conferred upon the Bank of Lisbon the status of a quasi-central bank with the obligations of lending and issuing money. This historical case study offers new insights for a better understanding of the role of banks on the regulation of monetary circulation and on the management of sovereign debt. By stressing the relevance of the political context, it also illustrates the key issues of trust, independence and rules associated to decision-making processes in the study of European banking history. The main focus is the link between banking practices and the political environment. However, the reader will also engage in discussions on theoretical and economic policy issues on the main economic topics under survey: money, paper money, public debt and credit system.

This book reviews banking internationalization by considering the new paradigms of globalization. The author primarily analyses why and how banks internationalize through equity deals, and the effect of regulation and market integration on the formation of deals, which allows authorities to manage the banking structure. This is a unique work that describes the relevance of the ownership model and cultural features of the partners and the key factors that help in choosing the market in which the banks bring activities abroad. The book addresses market characteristics, and new scenarios that should impact banks' internationalization strategies and ability to achieve success in deals that capture the attention of both researchers and practitioners.

The aim of Bernard Schmitt's analysis of the monetary economy of production was twofold: to introduce and to explain the logical character of the macroeconomic laws governing our economies and to explain the origin of the pathologies that follow if these laws are not complied with. Schmitt's main original contributions concern the theories of value, profit, and capital, as well as his explanation of inflation, unemployment and international payments, unified as quantum macroeconomic analysis. This book expounds on the key principles of quantum macroeconomic analysis as he conceived and developed them. Schmitt's starting point was the analysis of bank money and the way it is associated with produced output. His macroeconomics was not founded on microeconomics nor derived from the aggregation of microeconomic variables. Schmitt's theory does not rely on mathematics and modelling either; instead, it is based on logical laws derived from the nature of money and monetary payments. Part I of this book deals with the quantum macroeconomic analysis of capitalism and its pathologies developed by Schmitt and provides the elements necessary to understand its 'structural' mechanism. Parts II and III deal with the principles of two reforms that enable the passage from capitalism to post-capitalism and from the present non-system of international payments to an orderly system. This book provides essential reading for all those interested in heterodox approaches to macroeconomics, monetary economics, banking, international economics, and the history of economic thought.

This volume contains a collection of the most important articles on independent central banks and economic performance. The collection is comprehensive and divided into four parts: theoretical foundation of central banks independence, central bank independence, empirical evidence on central bank independence and determinants of central bank independence. The editor has prepared a new introduction discussing the main developments in this field. The volume will be a basic reference source for professors, lecturers, researchers, central bankers and other policymakers interested in studying the fundamental articles on central bank autonomy.

Bank failures, near failures, and crises are common throughout the world, and particularly in the major G-10 trading countries, including the United States, Germany, and Japan. But equally common are the bailouts by national governments, when they perceive that bank failure will result in severe economic distress. Gup examines these events, focusing on happenings in the particularly volatile years since 1980, and finds that nonperforming real estate loans, even more than fraud, are the primary cause. His wide-ranging investigation casts doubt on the effectiveness of bank regulation and makes clear that with globalization and emerging technologies, change in regulatory methods is needed. This book is essential for scholars, students as well as professionals in international banking, finance, investment, and world trade.

Talent management is a way banks acquire competitive advantage. Practices such as personality profiling with effective knowledge-based productivity and the application of high-performance work systems help to set a company apart from its competition and maintain this competitive advantage. This book provides an in-depth look at the relationship between personality types and individual-level performance in knowledge-based environments, through cases in Australia's banking and finance sector. This book also examines how high-performance workplace systems influence individual performance in relation to productivity through a multi-level analysis of micro- and meso-level factors. The findings in this book have relevant implications not only for the Australian system but also for other banking and financial service contexts outside of Australia.

The digital transformation of finance and banking enables traditional services to be delivered in a more effective and efficient way but, at the same time, presents crucial issues such as fast growing new asset classes, new currencies, datafication and data privacy, algorithmization of law and regulation and, last but not least, new models of financial crime. This book approaches the evolution of digital finance from a business perspective and in a holistic way, providing cutting-edge knowledge of how the digital financial system works in its three main domains: banking, insurance and capital markets. It offers a bird's eye view of the major issues and developments in these individual sectors. The book begins by examining the wider framework of the subsequent analysis and over the next three parts, discusses the opportunities, risks and challenges facing the digitalization of these individual financial subsectors, highlighting the similarities and differences in their digitalization agenda, as well as the existing linkages and dependencies among them. The book clarifies the strategic issues facing the development of digital finance in these major subsectors over the coming years. The book has three key messages: that digital transformation changes fundamentally the way financial businesses operate; that individual trades have their own digitalization agenda; and that the State with its regulatory power and central banking and money has a particularly important role to play. It will be of interest to scholars, students and researchers of finance and banking, as well as policymakers wishing to understand the values and limitations of new forms of digital money.

Cyber security is the greatest risk faced by financial institutions today, a risk they have understood and managed for decades longer than is commonly understood. Ever since the major London banks purchased their first computers in the early 1960s, they have had to balance their dependence on those machines with the need to secure their operations and retain the trust of their customers. Technological change in the second half of the 20th century prompted British banks to reevaluate their function as trusted protectors of wealth. In the City of London, the capital's oldest area and historically its business and commerce hub, the colossal clearing banks employed newly commercialised electronic computers-the processing power of which could transform the highly clerical clearing and settlement process. What unfolded over the following three decades was a relentless modernisation drive. Revolutionising the way that banks and other financial institutions conducted business and interacted with each other and permanently altering the speed and scale at which the United Kingdom's financial sector functioned, this rapid modernisation thrust computer security into the consciousness of bank executives and their clients alike. Dependence on computers quickly grew, and the banks immediately realised the need to secure their new software and hardware. Focusing on the period 1960 to 1990, this book uses newly released and previously unexplored archival material to trace the origins of cyber security in the UK financial sector. Topics and features: Describes how institutions managed the evolving challenge of computer security in the second half of the 20th century Demonstrates continuity in banks' views of security through the prism of confidentiality, integrity and availability, and the concept of resilience Presents case studies of bank collaboration on computer security through creation of payment systems like SWIFT and CHAPS Outlines the shift from focusing on physical security measures to technical network-protection measures Explores the relationship between banks and the UK Government as bank operations became dependent on computer and network technology This work will be of value to students and academic researchers in the history of computing, financial history, and the history of intelligence and security, as well as the general reader interested in contemporary intelligence, cyber security, and finance.

Transforming Climate Finance and Green Investment with Blockchains establishes and analyzes the connection between this revolutionary technology and global efforts to combat climate change. The benefits of blockchain come through various profound alterations, such as the adoption of smart contracts that are set to redefine governance and regulatory structures and transaction systems in coming decades. Each chapter contains a problem statement that describes the challenges blockchain technology can address. The book brings together original visions and insights from global members of the Blockchain Climate Institute, comprising thought leaders, financial professionals, international development practitioners, technology entrepreneurs, and more. This book will help readers understand blockchain technology and how it can facilitate the implementation of the Paris Agreement and accelerate the global transition to a green economy.