Credit derivatives enable banks to manage credit risk separately from other types of risk, by transferring selected credit risks to third parties. Recently, global credit derivative markets have expanded rapidly, but a relatively small number of banks still accounts for most of the credit...

In the last two decades, regulators have focused on the enforcement of minimum capital requirements on banks. Excessive risk-taking might otherwise have been encouraged by the principle of limited liability and by the availability of deposit insurance. Strengthened capital regulation has...

Purpose – This paper seeks to review and extend previous research on the performance of Islamic mutual funds (IMFs) by evaluating the relative performance of IMFs and conventional funds during the global economic crisis in the context of the Saudi Arabian capital market....

Before the financial crisis of 2007-2009, the search for new revenue and profit streams by US banks contributed to a long-term trend towards disintermediation. Trading in derivatives might offer an alternative to traditional deposit-taking and lending business as a source of revenue and profit;...

The systematic failure of the global equity markets during the recent financial crisis made investors re-evaluate their portfolio constituents. It is argued that equities that comply with the Islamic investment principles perform better than conventional equities during the declining phase of...

Credit derivatives enable banks to transfer selected credit risks to third parties. An empirical model is developed for the motivation for bank participation in credit derivative markets and, conditional on participation, the factors that determine the volume of business transacted....