Banking policies and regulations: comparative study of Kuwait, UAE and Qatar

Hussain, Md. Mostaque; Mohamed, Ehab K. A.; Islam, Mazhar M.; Rahman, Mawdudur

doi:10.1504/ijfsm.2007.014993

Cited by 5 publications

(3 citation statements)

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“…The first is due to SAMA's charter, which prohibits the payment and receiving of interest; furthermore, there is no discount rate policy. This is unlike the banking regulation and supervision practices of some other GCC countries (Hussein et al , 2007). As such, interest rates play a subsidiary role, as they are predominantly affected by US dollar interest rates.…”

Section: Sama's Objectivesmentioning

confidence: 88%

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Evolving banking regulation and supervision

Ramady

2009

International Journal of Islamic and Middle Eastern Finance and Management

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PurposeThe purpose of this paper is to analyze the effectiveness of the Saudi Arabian Monetary Agency's (SAMA's) regulatory policies.Design/methodology/approachBoth descriptive and comparative analyses are used, especially in highlighting SAMA's monetary policies and approach during the 2008 world financial crises.FindingsThe analyzes revealed that SAMA has more than adequately met international regulatory supervision standards, but will face challenges in regulating the domestic Islamic banking sector, meeting the self‐imposed 2010 Gulf Cooperation Council (GCC) gulf monetary union under a fixed parity rate regime, developing cross border regulatory and supervisory skills, and suggests possible solutions.Practical implicationsThe paper noted the role of SAMA in managing monetary policy under a fixed parity regime, its banking supervision policies, and the evolving nature of banking regulation in the face of globalization challenges, World Trade Organization (WTO) accession in 2006 and in coping with the 2008 global financial crises which could be a template for other GCC central banks. The paper highlighted the major elements and effectiveness of Saudi banking law and restrictions on Saudi banks in terms of capital adequacy, reserve requirements and financial services, and address issues such as the impact of new regulatory reforms by SAMA, and their effectiveness on monitoring and supervising Saudi banks.Originality/valueThe paper concludes that the effectiveness of SAMA's regulatory policies has withstood both domestic and international financial crises and that SAMA can play a powerful influence in the proposed GCC monetary union.

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Section: Sama's Objectivesmentioning

confidence: 88%

“…In line with other Central Banks in the Gulf region, SAMA is solely responsible for monetary policy formulation and implementation (Hussein et al , 2007). It is free to select its operating procedures and to determine the choice of instruments as well as when to apply them.…”

Section: Sama's Objectivesmentioning

confidence: 90%

Evolving banking regulation and supervision

Ramady

2009

International Journal of Islamic and Middle Eastern Finance and Management

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“…Therefore, the degree of competition in the banking system is of concern to policy-makers who need to test the level of competition before deciding on the appropriate policy. This argument rests on the ground that the main objective of bank regulations is to prevent the risk of bank failure (Hussain, Mohamed, Islam, & Rahman, 2007).…”

Section: Literature Reviewmentioning

confidence: 99%

How competitive is the Syrian banking sector? Empirical evidence from ‘pre/post’ war Syria

Diwani

2022

Pacific Economic Review

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This paper investigates the degree of market power in the Syrian banking sector over the period 2005–2016 where research on competitive conditions does not exist. The degree of competitiveness is assessed based on the revenue elasticity to input prices approach and is related to a set of market indicators. To test whether the Syrian crisis has altered the competitive conditions over the years of the sample, I divide the full sample into two subsamples, namely the pre‐crisis years (2005–2012) and the crisis years (2013–2016). The results suggest that banks in Syria earn their interest and total revenue under conditions of monopoly. I find that the trend of market structure—characterized by a monopoly—in the pre‐crisis years continues over crisis years. My findings provide robust evidence that a collusive behaviour among banks is in operation in the banking sector of Syria. The difficult penetration into/exit from the market has led to the existence of a profit‐curb mechanism for the Syrian banks, hence, an upward shift in the marginal cost curve will be associated with a reduction in revenue as a result of the optimal condition for these banks which act as monopolists.

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Effective regulatory regimes: a comparative analysis of GCC financial regulators

Ramady

2015

Journal of Financial Regulation and Compliance

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Purpose – The purpose of this study is to investigate the effects of the global financial crisis on Gulf Cooperation Council (GCC) bank regulation and the impact on the region and the policies adopted by the regulators to avoid financial panic and contagion. Design/methodology/approach – The author examines GCC countries’ financial soundness indicators in terms of capital adequacy, non-performing loans and provisioning rates, including central bank liquidity support, deposit guarantees, capital injections and monetary easing and policies to mitigate risk assessment, and the monitoring and elimination of practices promoting excessive risk. GCC compliance regimes through multinational organizations and the exposure of the region to cross-border financial linkages to test for financial soundness are assessed. Findings – Overall, results indicate that comprehensive regulatory oversight exists in the GCC in conformity with international standards, and Basel capital adequacy requirements, and that the GCC regulators have acted prudently to establish high coverage in all measures but that gaps exit concerning cross-border surveillance and a need for imposition of capital surcharges on banks deemed high systemic risk. The supervision of Islamic financial institutions and a lack of inter-GCC liquidity support mechanism for this segment are highlighted. Practical implications – The paper shows that the GCC regulators need to address cross-border surveillance, as local banks branch internationally and foreign banks operate in the region. Originality/value – The author is not aware of any similar work that compares the regulatory policies of the GCC.

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Banking policies and regulations: comparative study of Kuwait, UAE and Qatar

Cited by 5 publications

References 0 publications

Evolving banking regulation and supervision

Evolving banking regulation and supervision

How competitive is the Syrian banking sector? Empirical evidence from ‘pre/post’ war Syria

Effective regulatory regimes: a comparative analysis of GCC financial regulators

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