The Link between International Supervision and Banking Crises

Theoretical and empirical contributions of some economists have shown that a financial liberalisation policy implemented in a less developed institutional environment enhances the proliferation of banking crises. This leads to the conclusion that failure at the level of banking governance plays a significant role in the emergence of crises. By using multivariate logit, our empirical study samples of 12 emerging countries to study the relationship between banking supervision and banking crises during the period 1980-2003. Our results show a negative and insignificant association between banking regulation and the probability of occurrence of banking crises. We find the likelihood of banking crises is greater in countries with poor banking supervision. In short, the condition required for a sound banking system is to reinforce banking supervision during financial liberalisation phases.Financial liberalisation, Banking crises, Prudential supervision and multivariate logit

On the Range of the Fourier Transform Associated with the Spherical Mean Operator

We characterize the range of some spaces of functions by the Fourier transform associated with the spherical mean operator R and we give a new description of the Schwartz spaces. Next, we prove a Paley-Wiener and a Paley-Wiener-Schawrtz theorems

Foreign Direct Investment, Institutions and Economic Growth: Evidence from the MENA Region

Few scientific papers treat the role of institutions on the relationship between foreign direct investment (hereafter FDI) and economic growth. In the existing literature, the FDI effects on growth are not easy to understand. Mixed findings, both theoretical and empirical, have been provided on this issue by the academic research. The first contribution of this study is an analysis of how institutions quality affects FDI-growth nexus. The second contribution is the use of the Panel Smooth Transition Regression (PSTR) modeling because the nexus between FDI and economic growth is nonlinear and depends on specific national factors especially institutions quality. This method helps to account for a change of regime in the effects of FDI on economic growth. The major finding of this study is that the effect of FDI on economic growth is conditional to the development of institutions in MENA countries. Empirically, on a sample of 19 MENA countries over the period 1984-2011, we found that only countries with good institutions can exploit the advantages of FDI on growth

Bank Capital Adequacy Requirements And Risk-Taking Behavior In Tunisia: A Simultaneous Equations Framework

We extend exiting literature on the efficiency of capital adequacy requirements in reducing risk-taking behaviour of Tunisian commercial banks using a new risk measure: the weighted-assets to total assets.  To that end, using a simultaneous equations framework, we reached four main results.  First, interaction between capitalization and risk level is negative and not significant, which means that an increase in capital is followed by a decrease in banking risk-taking.  Second, Tunisian banks dispose of a weak institutional and regulatory level.  Third, the larger the banks are, the more they manage their risk, since large banks have more experience in managing risk levels through diversification.  Finally, we found a negative relationship between size and bank capitalization, indicating that the larger bank size is the lower risk level is

New sensitivity analysis subordinated to a contrast

International audienceIn a model of the form $Y=h(X_1,\ldots,X_d)$ where the goal is to estimate a parameter of the probability distribution of $Y$, we define new sensitivity indices which quantify the importance of each variable $X_i$ with respect to this parameter of interest. The aim of this paper is to define {\it goal oriented sensitivity indices} and we will show that Sobol indices are sensitivity indices associated to a particular characteristic of the distribution $Y$. We name the framework we present as {\it Goal Oriented Sensitivity Analysis} (GOSA)