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The regulators’ dilemma and the global banking regulation: the case of the dual financial systems

Author

Listed:
  • Andrea Delle Foglie

    (Sapienza University of Rome)

  • Elias Boukrami

    (Regent’s University London)

  • Gianfranco Vento

    (Guglielmo Marconi University)

  • Ida Claudia Panetta

    (Sapienza University of Rome)

Abstract

This paper aims to contribute to the literature debate on the regulators’ dilemma affecting international financial regulations focusing on the banking regulation of dual financial systems. In this regard, the paper provides a new taxonomy of Islamic Financial Systems considering the banking regulation as a driver for the classification and a more detailed definition of dual financial systems. The literature review reveals the existence of different financial system structures affected by socio-cultural biases due to different characteristics of various countries and financial systems globally. The risk of regulatory arbitrage or over-regulation phenomena is high, stifling the growth and the level playing field for both some systemically financial systems.

Suggested Citation

  • Andrea Delle Foglie & Elias Boukrami & Gianfranco Vento & Ida Claudia Panetta, 2023. "The regulators’ dilemma and the global banking regulation: the case of the dual financial systems," Journal of Banking Regulation, Palgrave Macmillan, vol. 24(3), pages 249-263, September.
    • Handle: RePEc:pal:jbkreg:v:24:y:2023:i:3:d:10.1057_s41261-022-00196-2
    DOI: 10.1057/s41261-022-00196-2
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    References listed on IDEAS

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    More about this item

    Keywords

    Banking regulation; Basel framework; Islamic bank; Islamic practices; Governance standards;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law

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