This article reviews the literature studies on the sectoral interactions of financial sector development. The economic sectors such as foreign trade, industry, and tourism have been taken into consideration with this respect. The study reviews this literature based on three major distinctions: Time series studies for individual country contexts, panel data studies and cross sectional data studies for group of countries or regions. The major conclusion of this study is that although huge number of studies have been carried out for financial sector development, consensus on its impact on the economic sectors are of still mixed findings.

The role of uncontrolled bank credit growth on bank crises in the period prior to and since the global financial crisis has been discussed widely. In recent modelling of bank crises a controllable variable credit- to – GDP gap has been vastly used. This study sets out to analyze the roles of growth on bank credits, NPLs and credit to GDP gap on bank crises. The data is used for the years between 1999-2014 for 46 emerging and developed countries. The Z scores and capital adequacy ratio are used as control variables in a panel logit model. Our findings indicate that the bank credits are significant on bank crises. However, it should be noted that with the bank credits that cause rise in NPLs and the systemic risk carry higher risk. It is generally accepted that the capital adequacy regulations have important role on having a sound and stable banking system. The results suggest that the high and firm capital adequacy ratios instead of having a diminishing effect recently are causing higher risks.

This study investigates Turkish banking industry in terms of opacity. Opacity can be defined as a market condition where consumers have limited information about each bank’s asset portfolio and its ability to repay the debt. Recent studies proved that banking sector in general has an opaque nature and it is difficult for markets to evaluate their fair value. Such asymmetric information may lead banks to be vulnerable in times of internal and external disturbances. Turkey had experienced severe financial crises in the last decade because of its banking structure. Although banking system seemed to be progressed afterwards, its need to be realized that banking opacity continues to threats whole banks and so the economy. This study examines Turkish banks that are publicly traded in the Borsa Istanbul between 2003-2008. Banks are studied whether their opaque nature generates greater return than transparent assets. Second, it is identified whether opaque oriented banks have an influence on valuation discount of those banks. Finally, in order to assume that opacity creates systematic risk, the study investigates how opaque assets contribute to price synchronicity. Findings show that banks are better off when they invest more in opaque assets relative to transparent assets. It is also found that opaque assets create cost of equity capital hence greater valuation discounts necessity. Lastly it is statistically significant that opaque structure leads price synchronicity among Turkish stock market.

Corporate Social Responsibility (CSR) disclosure levels of the financial institutions have been increasing consistently since the introduction of this concept; hence, it is important to understand the reasons behind this phenomenon. This research aims to identify firm-specific determinants on the CSR disclosure for financial companies at the United Kingdom. Our study brings a new perspective to the literature by utilizing from a multi-theoretical framework; including Agency, Legitimacy and Stakeholder theory; to determine the independent variables of our model, those are, size, leverage levels, economic performance and corporate governance performance of the companies. Also, we define the dependent variables of our model, CSR disclosure, in a more comprehensive way in comparison to many previous studies. CSR scores of companies, is obtained from Asset4 database that considers wide range of publicly available sources.This research confirms that size, corporate governance, and economic performance of companies have a significant positive relationship with CSR disclosure which shows that CSR performances of companies are related with visibility levels, political costs, and stakeholder perspective.

The aim of this study is to examine the financial performances of Islamic and conventional banking systems in the United Arab Emirates (UAE). Four Islamic banks and seven commercial banks in the UAE are analyzed for the period of 2005-2014. In terms of Islamic banks, the findings indicated that the variables asset quality (ASQ) and liquidity (LQR) have negatively impacted return on assets (ROA) and return on equity(ROE). In addition, capital adequacy (CAR) had a positive relationship with ROA and a negative relationship with ROE, while size (LOGSIZE) had a positive influence on ROA but was statistically insignificant on ROE. Management efficiency (EFF) was statistically insignificant on Profitability. On the other hand, regression results of conventional banks showed that CAR, ASQ and LOGSIZE have negatively affected profitability. EFF had a positive impact on profitability, while LQR was statistically insignificant for conventional banks. The results of this study can be used to generate several recommendations for managers of both conventional and Islamic banks.