Islamic lending transactions are governed by the precepts of the shariah, which bans interest and stipulates that income must be derived as return from entrepreneurial investment. Since Islamic finance is predicated on asset backing and specific credit participation in identified business risk,...

Policy-makers have attributed the scale of the credit crisis and its profound impact on money markets (as well as financial sector stability) to the fast rise of securitization and the way it has arguably complicated both the conduct of monetary policy and the effect of interest rate...

Many developing countries face substantial challenges from climate change and need significant financial resources to fund essential mitigation and adaptation efforts. Mobilizing more private sector resources requires balancing economic incentives and policy choices to encourage long-term...

The profitability of Italian banks depends, among other factors, on the strength of the ongoing economic recovery, the stance of monetary policy, and the beneficial effects of current and past reforms, notably to address structural obstacles to resolving nonperforming loans (NPLs) and to foster...

More than two years ago the European Central Bank (ECB) adopted a negative interest rate policy (NIRP) to achieve its price stability objective. Negative interest rates have so far supported easier financial conditions and contributed to a modest expansion in credit, demonstrating that the zero...

Over the last decade, stress testing has become a central aspect of the Fund's bilateral and multilateral surveillance work. Recently, more emphasis has also been placed on the role of insurance for financial stability analysis. This paper reviews the current state of system-wide solvency stress...

The paper examines the complementary role of covered bond and securitization markets in enhancing the effectiveness of monetary policy and the integration of capital markets in the euro area. Both types of asset-based finance are instrumental in supporting the portfolio rebalancing and credit...

The paper examines the development of structured finance, and complementary role of covered bond and securitization markets, in resolving current policy challenges in the euro area, especially in the area of monetary easing and greater integration of capital markets. It reviews the...

This chapter describes major insurance sector developments over the past decade and assesses changes in the systemic importance of insurers. Insurance firms play an important role as providers of protection against financial and economic risks and as financial intermediaries.The chapter shows...

Prudential regulation of infrastructure investment plays an important role in creating an enabling environment for mobilizing long-term finance from institutional investors, such as insurance companies, and, thus, gives critical support to sustainable development. Infrastructure projects are...