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Islamic finance: zero interest, high expectations

Islamic finance: zero interest, high expectations
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Prompted by rampant growth rates, the industry of Islamic finance is increasingly drawing the attention of investors, regulators and scholars. The peculiarity of Islamic financial activities is the compliance with Sharia, the Islamic law. According to Sharia’s precepts, generating revenues from money is prohibited and interest-paying arrangements are considered “riba” (aka usury). Therefore, Islamic financial […]

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The CMU initiative: Is a hard Brexit really an option?

The CMU initiative: Is a hard Brexit really an option?
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The European Single Market is based on four fundamental pillars: the free movement of people, goods, services and capital. Despite the formal freedom, capital does not flow across national borders with the same ease of the other items. In fact, when compared to US or Japan, European financial markets rely intensively on traditional bank-based intermediation […]

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European Monetary Fund: further integrating financial stability

European Monetary Fund: further integrating financial stability
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In recent months the long-standing idea of creating an EMF has experienced a revival, such that the Commission even set out a roadmap to establish the new institution within 2019. A well-designed EMF should be able to manage asymmetric shocks (i.e. affecting some European countries more than others) and could hence reinforce the financial stability […]

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Basel 4 and European banks, are we safer now?

Basel 4 and European banks, are we safer now?
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«Basel endgame», sentenced Mario Draghi on December 7th, at the presentation of the new BCBS package of rules for the banking sector. After an 8-year delay, chiefly due to the divergent interests of American and European standard-setters, a revision of Basel 3 was eventually agreed on. Basel regulators found a compromise for the adoption of […]

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