Shari’ah supervision,corporate governance and performance: Conventional vs. Islamic banks

The performance and accountability of boards of directors and effectiveness of governance mechanisms continue to be a matter of concern. Focusing on differences between conventional banks and Islamic banks, we examine the effect of (i) Shari’ah supervision boards, (ii) board structure and (iii) CEO-power on performance during the period 2005–2011. We find Shari’ah supervision boards positively impact on Islamic banks’ performance when they perform a supervisory role, but the impact is negligible when they have only an advisory role. The effect of board structure (board size and board independence) and CEO power (CEO-chair duality and internally recruited CEO) on the performance of Islamic banks is overall negative. Our findings provide support for the positive contribution of Shari’ah supervision boards but also emphasize the need for enforcement and regulatory mechanism for them to be more effective.     

Bank governance,regulation, supervision,and risk reporting: Evidence from operational risk disclosures in European banks

This paper investigates the direct and joint effects of bank governance, regulation, and supervision on the quality of risk reporting in the banking industry, as proxied for by operational risk disclosure (ORD) quality in European banks. After controlling for the endogeneity between bank stability and risk reporting quality, we find that banks having a higher proportion of outside board directors, lower executive ownership, concentrated outside non-governmental ownership, and more active audit committee, and operating under regulations promoting bank competition (i.e., less stringent entry to banking requirements) provide ORD of higher quality. In addition, we find that the contribution of bank supervisors to the enhancement of ORD quality depends on the ownership structure of the bank. Specifically, powerful and independent bank supervisors mitigate the incentives for entrenched bank executives to withhold voluntary ORD. Moreover, bank supervisors and largest shareholders perform substitutive roles in monitoring the bank management's compliance with mandatory ORD requirements. For the sake of enhancing risk reporting quality in banks, our findings recommend sustaining board independence, enhancing audit committee activity, easing entry to banking requirements, and promoting a more proactive role for bank supervisors.     

Leaving the darkness: The emergence of shadow banks

This paper studies the interaction between bank capital regulation, moral hazard and co-existence of traditional and shadow banks. Bank managers can choose between traditional banking and off-balance sheet special purpose vehicles (SPV), in a setup with deposit insurance and moral hazard. We first show that in the absence of SPV intermediation, capital requirements are ineffective at preventing the moral hazard problem originated by deposit insurance. We find that shadow banks can improve financial stability, when there is full information sharing. Finally, we analyze the case of neglected tail risk. We find that under such circumstances, the SPV will increase financial risk by exposing the system to extreme events.     

商业银行IT治理

中国银行业信息化建设经过近几年的高速发展，IT应用已成为商业银行生存竞争、获取市场价值、实现商业目标的重要因素，但目前商业银行的IT战略、IT投资、IT风险及绩效管理却始终是银行信息化建设中的薄弱环节。随着银行信息化建设的进一步深入，如何制定与业务战略相匹配的IT战略，如何管理和监控银行IT     

Macro prudential governance and central banks: Facts and drivers

The Great Crisis has highlighted the importance of establishing macro prudential architectures to address problems of financial stability. Central banks are always part of macro prudential settings, but their role is far from being homogeneous across countries, reflecting the fact that according to economic theory there are pros and cons in extending central bank influence to macro prudential supervision. The issue is then genuinely empirical: are there any meaningful drivers explaining the actual choices made by policymakers about the central bank's role in macro prudential governance?We identify three potential drivers – micro supervision involvement, monetary policy discretion, overall institutional independence – and test for their relevance, by analysing current institutional settings in 31 advanced and emerging market economies. We find that central bankers already in charge of micro supervision and less politically independent are more likely to get extended macro prudential powers; the same is true, if they have low monetary policy discretion, being constrained by a monetary stability objective. We interpret these results by using a political economy perspective.     

银行公司治理与风险管理

公司治理和风险管理之间存在着密切内在的联系,公司治理结构是风险管理的一个基础平台,公司治理机制是风险管理最基本的机制,风险管理是公司治理的重要内容和目的。银行公司治理的核心,主要是提高风险掌控能力,研究银行的公司治理,必须要研究银行风险管理战略和目标。     

商业银行IT治理探析

信息技术已经成为全球经济的关键驱动因素之一，推动银行业长足发展。中国银行业正以前所未有的高速度发展，这既受益于中国宏观经济形势和银行业自身的变革，也在一定程度上受益于采用信息技术的后发优势。随着银行业务发展对信息技术依赖程度的加深，业务与IT之间的一些亟待解决的问题日益显现。这些问题可以通过深化IT治理加以解决。     

新型银行风险监控系统

为了有效地防范和化解金融风险，维护正常的金融秩序，在实行严格的金融监管以外，如何有效地利用信息化来为金融行业的风险监控提供支持是近年来的一个热点话题。为了做到对风险早发现、早预警、早控制、早处置，构建一体化的信息搜集、传导和风险分析监控系统，改变目前风险监控彼此分割、资源不能共享的状况，从更高的层次、更广的范围构筑大风险监控系统势在必行。     

Differences and similaritites between corporate governance principles in Islamic banks and Conventional banks

The purpose of this paper is to present the some differences and similarities between corporate governance principles in Islamic banks and conventional banks by paradigmatic diversification. Since Corporate governance in Islamic banks is a social phenomenon in Islamic societies, the paper uses social theory paradigms (functionalist, interpretive, radical humanist and radical structuralist) to compare between corporate governance in Islamic banks and conventional banks. This paper demonstrates that mainstream corporate corporate governance theories are not a law of nature but a social construct.     

Shariah governance in Islamic banks: Practices,practitioners and praxis

This study examines Shariah governance in Islamic banks by analyzing and comparing international and national Shariah governance codes across 11 countries and the annual reports of the largest stand-alone Islamic bank in each of these countries. Drawing upon the practice theory framework, this study identifies the similarities and differences across countries in Shariah governance practices, practitioners, and praxis. Regarding practices, we found that the 11 countries reviewed have adopted different approaches, i.e., strict, moderate, or flexible approaches, in developing regulations for Shariah governance structures and processes. The approach taken by each country, in turn, influences Shariah governance practitioners and praxis at the institutional level to some extent. Specifically, Islamic banks in countries belonging to the moderate and flexible groups are likely to be more varied in terms of Shariah governance practitioners as well as praxis (activities or processes) to ensure Shariah compliance as compared to their counterparts in countries with strict regulations. Analyzing current Shariah governance practices in these 11 countries can promote a greater understanding and resolution in addressing critical issues due to different contextual circumstances. Therefore, the findings of this study can provide relevant information for both regulators and practitioners to further improve the Shariah governance best practices in the Islamic banking industry.     

境外国有商业银行完善公司治理的经验

在国外实行国有商业银行体制是一个十分普遍的现象。研究表明,在20世纪80年代中期,发达国家政府在银行总资产中的比重占到了50％以上,到20世纪末,这一比重依然高达20％,而在发展中国家这一比重则更高。长期以来,各国的国有商业银行也同样面临着与中国国有商业银行类似的问题,比如,政策性负担重,政     

寻找中小上市银行最优的公司治理模式——银行董事会及其专门委员会的运作

董事会及其专门委员会的运作问题是上市银行公司治理所面临的重要而前沿的问题。中国民生银行和《银行家》杂志社于2007年6月4日在昆明市共同主办了“中小上市银行董事会及其专门委员会运作”主题研讨会,与会的监管部门、业界及知名专家学者对当前实践和理论中的热点     

The fall of Spanish cajas: Lessons of ownership and governance for banks

Ownership, governance, and institutional diversity among banks are a subject of public and regulatory concern. This paper addresses this issue by using a case study of Spain, where the retail banking market was split evenly between shareholder and stakeholder banks before the crisis. We examine how institutional diversity mattered in the accumulation of risk in the pre-crisis years, in the severity of losses caused by the crisis, and in the resilience to recover from the losses. The method of analysis consists in linking the risk position of the banks in the pre-crisis period and the losses arising during the crisis to the decisions of banks to migrate from business models based on deposit financing to models based on market-debt financing. We find that cajas migrated to more vulnerable business models following the strategy of the shareholder banks, but the losses in the crisis were much higher in the former than in the latter. The paper interprets this result as evidence that what matters the most about the ownership of banks is their resilience in bad times.     

商业银行数据治理探析

商业银行在业务开展过程中会产生许多数据,包括客户基本信息、客户与银行之间的业务信息、系统日志及交易日志等。加强商业银行的数据治理工作对于确保其安全稳定运营、实现业务管理创新具有十分重要的意义。商业银行数据治理的内容一般包括建立数据治理机制、明确数据责任人、建立和执行数据管理制度及流程、     

The governance,risk-taking,and performance of Islamic banks

We examine whether the difference in governance structures influences the risk taking and performance of Islamic banks compared to conventional banks. Using a sample of 52 Islamic banks and 104 conventional banks in 14 countries for the period from 2005 to 2013, we conclude that the governance structure in Islamic banks plays a crucial role in risk taking as well as financial performance that is distinct from conventional banks. Particularly, we show that the governance structure in Islamic banks allows them to take higher risks and achieve better performance because of product complexities and transaction mechanisms. However, Islamic banks maintain a higher capitalization compared to conventional banks. These results support the research on Islamic investment and risk taking. Our results add a new dimension to the governance research that could be a valuable source of knowledge for policy makers and regulators in the financial services sector.     

Global civil society: lessons from ocean governance

Late 20th century ideas about governance of the world's oceans may provide clues to the role of “civil society” in the 21st century. The UN Convention on Law of the Sea has radically changed traditional ideas about “national sovereignty”, shifting its focus from territorial to functional, imposing on states the duty to cooperate and pay taxes, requiring the sharing of sovereign rights, and transcending sovereignty with the “common heritage” concept. The proliferation of nongovernmental organisations operating on the international stage is empowering all elements of a burgeoning global civil society. In some pioneering experiences in international relations, nongovernmental representatives sit on a par with delegates from governments. Most of the elements of global civil society—NGOs, international business, the community of scientists, worldwide media, and local communities—are not yet focused on the kinds of globalization that can narrow the rich–poor gap and promote sustainable development, but in the new century, a more global civil society can play a more constructive role.     

我国城市商业银行法人治理结构问题浅析

文章探讨我国城市商业银行法人治理结构问题     

Testing for effective market supervision of New Zealand banks

There is a considerable amount of research that seeks to determine the extent to which retail market participants exert market discipline on banks either through the price approach (the correlation of price to risk), or the quantity approach (the movement of funds in response to changes in risk). In this paper we propose and implement a third approach: the retail market conditions approach. We seek to determine if the prerequisites for the exertion of effective market discipline by stakeholder monitors, as set out in Llewellyn and Mayes (2003. The role of market discipline in handling problem banks. Bank of Finland Discussion Papers. <http://www.bof.fi/eng/7_tutkimus/index.stm> (retrieved 13.04.04)), prevail by directly examining conditions that prevail among retail market participants. We find little evidence to support the proposition that they are being met among New Zealand retail depositors.