 Macroprudential policy and tools in a dual banking system: Insights from the literatureBorsa Istanbul Review, 2019, vol. 19, issue 1, 65-76 Abstract: The recent global financial meltdown highlights the need to promote financial stability through better regulation of financial institutions. The contentious debate strongly emphasizes, in particular, macroprudential tools, their implementation, and their effectiveness. This paper provides a critical review of theoretical and empirical research on the literature on Islamic finance that investigates macroprudential policy and its impact—specifically, the theoretical and empirical literature on the impact of macroprudential policy as it relates to financial stability and risk-taking in the Islamic and conventional financial systems. The findings suggest that only limited empirical research and analytical tools are available on macroprudential policy in the Islamic financial system because it is still in its infancy and far from able to create an analytical framework. Theoretical studies of macroprudential policy in Islamic finance have mixed results, and empirical research on it is not conclusive. Keywords: Dual banking system; Financial stability; Islamic finance; Macroprudential policy (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bor:bistre:v:19:y:2019:i:1:p:65-76 Access Statistics for this article More articles in Borsa Istanbul Review from Research and Business Development Department, Borsa Istanbul Contact information at EDIRC. |
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