This paper aims at identifying a causal relationship going from bank interest rates and credit rationing to usury. We manage the endogeneity issues by exploiting the variables that are related to bankruptcy proceedings as exogenous factors that affect bank variables, but not the other...

In this paper we analyse the role of peers' solidarity in fostering investment in production in the context of micro?nance. When there is asymmetric information between lenders and borrowers on the use of borrowed funds and loans are not collateralized, there is a high chance that borrowers use...

Purpose – In light of the current debate on bank capital requirements, the purpose of this paper is to investigate the relative impact of capitalization on risk‐taking efficiency in Islamic and conventional banks. The author tests whether changes occurring to the capital structure of such...

Purpose – This paper aims to investigate the role of the quality of government on financial supervisory structures in different countries. Design/methodology/approach – The objectives are pursued by means of econometric tools based on probit and multinomial logit techniques. Findings – It...

This paper investigates whether securities class actions (SCAs) can play a role in banking supervision, both as a warning signal of insolvency and as an instrument of market discipline to encourage bank managers to carefully evaluate risk. Two groups of US banks are compared over the 2000â2008...