This section contains information about articles under review and waiting for publication in next issues of the journal.

CEO duality and bank performance: The consistent null

Medhat Hassanein, Professor of Finance and Banking, Management Department, School of Business, American University in Cairo, Egypt
Rehab Wahsh, MSc, MBA, Academic Assistant to Professor M. Hassanein, American University in Cairo, Egypt

Abstract. Impact of leadership structure on bank performance has received considerable scrutiny from multiple stakeholders. Despite the empirical attention given to the leadership structure-bank performance relationship, extant evidence remains inconclusive. Against this backdrop, this paper sets out to examine the connotation of ‘optimal' corporate governance, the key governance mechanisms and the effects of corporate governance on firm value. In addition, the authors will discuss the key aspects in which banks differ substantially from generic firms and why such unique characteristics require a different governance approach. The authors will also provide a review of the contention surrounding leadership structure, the extant empirical research on the impact of leadership structure on bank performance, methodological approaches, and their findings. Moreover the paper will present the justifications proposed by researchers for the mixed evidence found in the empirical literature. In light of this inconsistency, the authors question the wisdom of continuing to search for conclusive evidence that would delineate and substantiate the leadership structure-bank performance relationship instead of focusing on alternative governance mechanisms that could be a more optimal choice for banks seeking sound corporate governance. The authors recommend conducting future research on understanding the board's audit committee functions and its role in maximizing the economic value added of a bank. 

Financing through waqf-shares: an Islamic perspective

Magda Ismail A. Mohsin, Economics and Governance Department, International Center for Education in Islamic Finance (INCEIF), The Global University of Islamic Finance, Kuala Lumpur, Malaysia

Abstract. Historically speaking the institution of waqf, which is a non-governmental organizations (NGOs), has played a significant role throughout Islamic history, from the time of the Prophet (pbuh) to the beginning of the 19th century. Although this institution existed before the coming of Islam, yet, Islam was the first religion to develop its legal framework and to regulate it. Thus, it became one of the devices created by the Muslims to fulfill many services that are today financed by the state or the government, such as education, health care, national security, transportation facilities, the basic infrastructure, food, shelter and jobs for many people. Its role was like a network, which penetrated many service sectors whenever it found a need to promote that sector. We cannot deny the role of this institution in the development of Islamic civilization before its destruction end of the 19th century. With the recent revival of some of the Islamic institutions in the 21st century, the revival of the institution of waqf took a different perspective by exploring its role towards solving the current financial crises in the different Muslim and Muslim-minority countries. The main objectives of this paper are to study the institution of waqf especially the recent creation of waqf-shares as fund raising institution; to provide a frame work of its structure which will be adapted easily in any financial institution, and, to examine to what extent this waqf-shares scheme help in providing services needed in Muslim and Muslim minority countries today.

Are defined contribution pension schemes socially sustainable? A conceptual map from a macro prudential perspective

Giuseppe Marotta, Università di Modena e Reggio Emilia and Cefin, Italy

Abstract. If the combined retirement income, provided by public and private defined contribution (DC) pension schemes,falls below socially acceptable standards, there is a political risk that consensus seeker policymakers could yield to pressures to commit future fiscal revenues. These contingent liabilities, when incorporated in markets' expectations, are bound to create spillovers on sovereign risk, with negative feedback loops on the capital adequacy of banks and of other intermediaries, owing to losses on their government paper. Among the causes of reduced annuities out of the final assets in DC pension funds is an equity risk premium much lower than the commonly values advertised by the industry and by policymakers. From a macroprudentialperspective,this political risk should be taken into account in stress testsassessing banks' resilienceto financial shocks.

Challenges of the national bank of Romania's monetary policy on the road to euro area

Monica Damian, Ph.D. candidate, Faculty of Economics and Business Administration, Department of Business Administration "Alexandru Ioan Cuza" University, Iasi, Romania

Abstract. Romania's accession to the European Union implies adopting the euro currency, which is conditioned by the participation in the Exchange Rate Mechanism II for at least two years.
The participation in the ERM II has implications upon the monetary policy: on the one hand, the exchange rate variation must fit the ± 15% fluctuation band around the central parity; while on the other hand, the fulfilment of the inflation criteria is necessary.
The first part of the paper focuses on the challenges of the National Bank of Romania's monetary policy which issue from the Maastricht convergence criteria.
The mandatory compliance of the fluctuation band at ± 15% implies the change of the monetary policy strategy during the ERM II participation period. Accordingly, it is necessary a more flexible direct inflation targeting strategy that will ensure the fulfilment of two criteria: price stability and exchange rate stability.
In the second part of the paper we highlighted the necessity of coordination of monetary and fiscal policy in the ERM II period, being essential for achieving inflation criteria and government deficit criteria. The fiscal policy must strive, simultaneously, the budget deficit and inflation decrease. In this sense, the fiscal policy must be based on the decrease of the share of budget expenditure in the GDP. But this reduction should aim the current expenditure, making possible the maintenance of an ascending trend of capital expenditure, necessary for the assurance of the economic growth. 

Cambodian lending-deposit rate spread: the results of non-market influences

Chu V. Nguyen, Assistant Professor, College of Business, University of Houston-Downtown, USA
Anisul M. Islam, Professor of Economics, College of Business, University of Houston-Downtown, USA
Muhammad Mahboob Ali, Professor, Head of M.H. School of Business, Presidency University; Chairman of the Center for Breakthrough Thinking, Bangladesh

Abstract. Asymmetric adjustments in the Cambodian lending-deposit rate spread are documented. This article plans to apply Enders and Siklos (2001) procedure to test for the long-run asymmetric co-integrating relationship and Granger causality between the lending rate and the deposit rate for Cambodian, a poor developing country in Southeast Asia using monthly time series data over the period from 1994:05 to 2010:06. The deposit rates adjust faster when the spread is narrowing than when it is widening. These findings are consistent with the observed monopolistic/oligopolistic structure of the banking sector. The revealed predatory pricing behavior impedes Cambodian industrial developments and hence slows economic developments and social progresses. The root causes of the problems are excessive government intervention and political connections, management corruptions, inefficiency and ineffectiveness. Strong political will and commitment to implement would be needed to establish a more competitive market economy for further economic growth and social progress in Cambodia.