This paper addresses if and how excess debt can be considered as an early warning signal for banks and takes an additional dimension by comparing the excess leverage between Islamic and conventional banks in Indonesia before, during, and after the Global Financial Crisis (GFC). To do so, this...

Tremendous efforts and initiatives have been proposed by policy makers to minimize the sever shocks of the recent banking crisis through variety of domestic macro gears as the international transmission shocks are evidently challenging to handle. This study aims to explore the global contagion...

We document banking system instability arising from a combination of fractional reserve requirements, deposit insurance and moral hazard by presenting several episodes of severe banking distress and crises in Asia. Following a framework of functional perspective suggested by Merton and Bodie...