Banking System Resiliency: Basel III, Islamic Banking and Cyber security
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This study looks into financial resiliency drawing on the academic and policy literatures and publications as a source to draw new perspectives. We focused on the theoretical side of banking system resiliency and explores the dimensions of it. We also dive into the factors that influence its state and affect banking performance. Complicated systems are more than just a summation of their individual functions. These functions act like organs and turn it into a separate compound organism. Understanding their inner workings can help us get an insight into what is going to compromise the systems integrity. We also take a look into the cases of financial crises that has taken form in the recent times. This study aims to contribute to the current literary scene by trying to establish a distinctive definition of banking system’s financial resiliency. It also looks into some of the cases of previous financial disasters, including the recent cyber-attack on the central bank in Bangladesh. Our conclusion is that only traditional methods of protecting a banks future through good current performance isn't enough, cybersecurity also has to be taken into account. We also compared Conventional and Islamic banking financial resiliency and found that under certain circumstances Islamic banking can be a more resilient system. We also found that the recommendations presentation in Basel III provide a good framework for developing a resilient financial and banking system. The iterative revisions of Basel III and its revised framework for IFSB-15 if implemented should cement the financial position of banking systems and prevent financial crisis like that of 2007 global crisis.
- Finance