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Incorporating ground-breaking technologies such as deep learning (DL) has revolutionized predictive modelling in the rapidly evolving landscape of the finance sector. DL approaches, capable of extracting complex patterns from vast data collections, become an efficient approach for predicting financial trends. By integrating the complex neural network architecture with comprehensive datasets, including investor sentiment, market indicators, and economic variables, finance experts have introduced prediction models well known for their ability to capture the nuanced dynamics of financial markets with remarkable performance. Incorporating DL approaches within the finance sector provided the basis for more informed decision-making, enabling institutions, investors, and analysts to capitalize on emerging opportunities with greater confidence and precision and navigate market volatility. This study develops a novel quasi-oppositional coot algorithm with a deep learning-based predictive method on the financial sector (QOCODL-PMFC) technique. The QOCODL-PMFC technique aims to perform a prediction process on the financial sector. The QOCODL-PMFC method applies min-max normalization to measure the input dataset into a meaningful format to achieve this. Next, the QOCODL-PMFC method designs the QOCO technique for selecting an optimal set of features. The QOCODL-PMFC technique applies the attention bidirectional gated recurrent unit (ABiGRU) model for the prediction process. The Harris Hawks Optimization (HHO) model is utilized to boost the performance of the ABiGRU network. The simulation evaluation of the QOCODL-PMFC technique is tested under a benchmark finance dataset. The experimental values of the QOCODL-PMFC technique exhibit a minimal MSE of 0.7452 over other models.

The purpose of the article is to theoretically comprehend the essence of big data, identify the advantages and risks of its use by financial organisations. The article presents the results of systematisation of knowledge about the nature and features of the big data. It has been revealed that the technology makes it possible to do better analytical research, create models for forecasting economic trends and market changes, study market dynamics, analyse medical data to improve diagnosis and choice of treatment methods, predict failure or breakdown of equipment in production by assessing data from sensors, develop social and economic programmes at the state level, identify fraud and corruption in the financial sector, etc. The relevance of the rapid development of the big data technology and the expediency of its use in this sphere is substantiated. As a result of the analysis of scientific literature, the author’s definition of the technology in the financial sector is presented. Its novelty lies in considering the features and advantages of applying the big data by financial organisations. The study of the modern practice of their usage in these institutions has revealed the main strengths and disadvantages of the technology in question.

This research article investigates the relationship between inflation and the performance of the financial sector within OECD countries, a group critical to global economic stability. The financial sector is a basis of sustainable economic growth, and its performance is heavily influenced by the macroeconomic environment, particularly inflation. This study analyses how inflation, alongside other significant factors such as real GDP growth, government size, trade openness, and interest rates, impacts the financial sector development. By examining data from 38 OECD countries over a 20-year period (2002-2021), this research employs a comprehensive approach using both static and dynamic panel regression models. The results consistently indicate a negative correlation between inflation and the key financial sector variables, suggesting that higher inflation levels undermine financial sector performance. These findings underscore the importance of maintaining low and stable inflation to foster an efficient and stable financial sector. This study makes a valuable contribution to the literature by focusing specifically on OECD countries, which are often seen as benchmarks for economic policies and financial systems.

This study aims to explore the financial implications of intellectual capital in the Jordanian financial sector during the period 2009–2018. It uses Pulic’s (2004) value-added intellectual capital model, particularly capital employed efficiency, structural capital efficiency, and human capital efficiency, and tests its potential effect on firm financial performance measures, including return on assets, return on equity, asset utilization ratio, and Tobin’s Q. The study’s findings demonstrate that value-added intellectual capital positively influences the financial performance of Jordanian financial companies. Value-added intellectual capital is not found to have a significant impact on productivity, but it is strongly and positively related to firm profitability and market value. As for the main components of value-added intellectual capital, human capital efficiency has a significantly positive impact on a company’s performance, but regarding structural capital efficiency, the outcomes vary depending on the measure of firm performance. Notably, when firms are categorized into sub-industries (banks, insurance companies, and financial service companies), it is found that the profitability of insurance companies is more affected by intellectual capital than that of banks or financial services. The results also show that investors place great importance on the efficiency of intellectual capital, particularly within the banking industry. Furthermore, implementing Shariah compliance standards boosts the positive effect of structural capital efficiency on corporate market value and reinforces the positive influence of human capital efficiency on productivity.

Financial stability is one of the key conditions for sustainable economic development of the country. The banking system plays an important role in ensuring financial stability and development of economic structures. However, banking activities are associated with certain risks that may negatively affect financial stability and economic development. The analysis of banking risks in the context of financial stability and development of economic structures in Ukraine is an urgent issue for research. The article is devoted to the analysis of banking risks in the context of financial stability and development of economic structures in Ukraine. The importance of the stability of the banking system for the country's economy is noted, and it is emphasized that the analysis of the financial condition and risks is a key element of the management of a banking institution. The article highlights the results of research by domestic scientists on banking risks and considers the classification of risks according to the methodology of the National Bank of Ukraine. The main focus is on credit risk, which is considered in the context of changes in the economy, the use of credit in enterprises and households, global financial markets and modern technologies for its assessment and management. The article aims to emphasize the importance of credit risk analysis in the context of modern challenges and opportunities in the banking sector of Ukraine.

Abstract The main objective of this paper is to discuss and examine the relationship between intellectual capital and financial services and to show if the financial sector is positively influenced by intellectual capital. We used the descriptive analytical approach assuming that there is a positive effect of the independent variable which is intellectual capital on the dependent variable which is financial services. The result of SPSS program (version 21) indicated that there is a weak direct correlation and a significant effect at a weak rate estimated at 9, 6% between intellectual capital and the improvement of financial service in Algerian banks.

The article substantiates the possibility of using R\S analysis for currency market research. The work is aimed at researching the currency market. The issue of research using R\S of the currency market is a new scientific direction. The study of the foreign exchange market, its regulation, influence on the financial systems of the countries of the world is gaining relevance these days. Foreign exchange transactions are often equated with the process of buying or selling securities. The paper analyzes the behavior of currency quotes on the foreign exchange market by determining the dynamic changes over time of the Hurst indicator, as one of the tools of R/S analysis, within the framework of the fractal market hypothesis. Calculations of the Hearst index were carried out according to the adjusted formulas of R/S-analysis, which allows to compare the value of the indicator on the foreign exchange market of Ukraine in different economic conditions. In a stable economic situation, the Hearst indicator tends to maintain its average value, while it is an indicator of events that directly or indirectly affect the state's economy and the rate of its national currency. The purpose of the work is to study the behavior of exchange rates of currency pairs by monitoring the Hurst indicator, as one of the tools of fractal analysis, within the framework of the fractal market hypothesis. Forecasting the future behavior of exchange rates is very important, as it allows to reduce currency risks and ensure the improvement of the effectiveness of various decisions in the field of international financial management. The Hurst indicator is widely used in time series analysis due to its stability. Its calculation requires minimal assumptions about the system being studied, and based on it, time series can be classified by memory type and depth. It can distinguish a random series from a non-random one. The paper provides an example of calculating the Hurst index using Mandelbrot's method. This indicator is used as an indicator of the long-term memory of time series. Hurst's indicator as a tool for fractal analysis of systems allows you to determine the degree of persistence of financial series, the presence of long-term memory in the currency market. Daily data on the exchange rate of the hryvnia to the dollar and the euro are taken from the official website of the NBU. It turned out that periods of stability of the hryvnia exchange rate relative to other currencies are observed in different years. Accordingly, the fractal dimension of the series also changes. For most periods of the hryvnia exchange rate, anti-persistent series were found, that is, when the decline is most likely replaced by growth. R\S analysis techniques analysis is a key tool for market analysis, which allows you to understand when and which assets should be bought and when to sell.

The banking industry plays a crucial role in driving the Indonesian economy. Therefore, any financial upheaval within this sector would have a significant influence on the overall economy. Hence, this study examines the capital composition of banking institutions in Indonesia to assess the financial soundness of the banks. A bank’s susceptibility to default will adversely affect client confidence in the bank. This study investigates the influence of governance attributes, such as board size, board meeting frequency, risk committee presence, institutional ownership, and independent committee existence, on the capital structure of Indonesian banks. 31 samples were intentionally chosen using purposeful sampling. Data estimation was performed using a two-step Arellano-Bond Generalized Method of Moments (GMM) estimator. The findings suggest that the bank risk committee, institutional ownership, and independent committee exert a notable and favorable influence on the capital structure of banks in Indonesia. Nevertheless, the size of the board and the frequency of board meetings do not exert a substantial impact. The size of the board and the use of leverage have no substantial impact. Developing efficient corporate governance procedures is essential for ensuring the bank’s financial stability. This involves maximizing the effectiveness of the risk committee, institutional ownership, and independent committee. AcknowledgmentThis paper is funded by PPM-PTM Grants of the Ministry of Education, Culture, Research and Technology of 2023 (03/SP2H/RT-MONO/LL4/2023).

Purpose of the study. The imposition of sanctions on the financial sector and suspending relations with international financial institutions in 2022 has significantly affected the external conditions for the development of the domestic financial sector, caused an increase in geopolitical tensions and instability in the Russian currency market. It is necessary to study and understand the processes currently taking place in the financial market. The article is devoted to the statistical assessment of the impact of sanctions on the Russian financial system in 2022 and 2023. The purpose of research paper is to identify the situation on the currency, money and credit, debt market, as well as in the budgetary sphere, to assess the relationship between the dynamics of key financial indexes in the sanctions crisis. Materials and methods. The sources of information for the calculations were official data from the Ministry of Finance of the Russian Federation, the Bank of Russia, the provider of data on financial markets Cbonds and PJSC “Moscow Exchange”. The article used statistical methods of analysis: variations, dynamics, hypothesis testing. Determination of anomalous levels of the time series was carried out using the Irwin method. Differences in average federal budget indexes were assessed using the Wilcoxon Matched Pairs Test. The dependence of the dynamics of the main financial indexes was assessed on the basis of time series correlation. Results. The study allowed us to conclude that 2022 was a critical year for the Russian financial system. All its sectors were affected by sanctions restrictions. The weakening of the national currency was revealed in the currency market, and it was found that the dollar exchange rate in 2023 was abnormally high for the period from 2000 to 2023. The budget sector hasdemonstrated stability. The results of the study showed that the sanctions pressure did not affect the revenue part of the federal budget. However, the average monthly expenditure of the federal budget increased statistically significantly by almost three times in 2022. The monetary market reacted with an excessive supply of money. The increase in the money supply has reached its highest value in the last 10 years. The money supply growth was accompanied by changes in its structure. The banking sector showed the development of the credit growth trend. The debt market reacted with a rapid growth of corporate bonds volume, the highest for the last 10 years. And the market of federal loan bonds was characterized by a rapid reduction in the volume of federal loan bonds owned by non-residents and a decrease in the share of non-residents. The interrelation between the dynamics of the US dollar exchange rate and the volume of corporate lending associated with the conversion of loans in US dollars and euros into yuan was revealed. Direct interrelation was observed in the dynamics of money supply and the volume of corporate bonds and federal loan bonds market. Conclusion. The financial system is adapting to new circumstances. The transformation of methods and tools of financial regulation accompany this process. This process requires studying and understanding changes in the composition, dynamics, and interconnection of the structural elements of the financial system, as well as finding ways for its development.

Unethical behavior in the financial sector is a common and costly phenomenon. The main purpose of this study was to examine how ethical board leadership in the financial sector relates to the ethical climate and incidents of unethical workplace behavior. Surprisingly few studies have examined whether ethical leadership of the top management of organizations relates to lower levels of unethical behavior displayed by organizational members at the work floor. Moreover, the few existing studies have used generic measures of ethical leadership which provide little insight into concrete and visible leadership behaviors that should be displayed by board members to build an ethical climate. Building on Ethical Leadership Theory, Signaling Theory, and the Social Identity Theory of Leadership, we examined whether employees’ perceptions of the board’s commercial focus, unjustified board pay and the board’s focus on consumers’ interests related to an instrumental ethical climate in financial organizations, and indirectly to the incidence of observed unethical behavior. The Dutch Authority for the Financial Markets collaborated with the authors of this paper to develop an online survey. At the end of 2018 and the beginning of 2019, the survey was distributed in 18 organizations, which operated in four subsectors of the Dutch financial sector (four banks, four insurance companies, five financial intermediary companies, and five funeral insurance companies). The survey was completed by 4,144 employees in total. We do not think that the Dutch context is unique, although after the financial crisis, Dutch behavioral codes came to the fore which stated that that executive boards are responsible for preventing unethical behavior. The quantitative, correlational data of the survey were used to conduct structural equation modeling. Confirming our research questions, results showed that the board’s commercial focus and unjustified board pay related to higher levels of unethical workplace behavior, via a more instrumental climate. Moreover, the board’s focus on consumers’ interests negatively related to unethical behavior, via a less instrumental climate. Additionally, we performed content analysis of free-format comments in the survey (N= 195). Results revealed that most comments centered around board pay and addressed this in a negative sense. Perceptions of unjustified board pay seemed to lead to lower identification with the board and elicited ‘them’ (at the top) versus ‘us’ (at the work floor) thinking among employees. In conclusion, this study in the financial sector indicates that exemplary behavior at the top, regarding board pay and the board’s focus on commercial and consumers’ interests, shapes ethical climates in organizations and as such can set the stage for unethical behavior, also towards consumers. Future research on the effects of ethical board leadership should strive to use experimental or longitudinal research design and include objective measures of unethical behavior. We also hope to inspire future research on possible additional dimensions of ethical board leadership in the financial and other sectors. For practice, this study provides insight in concrete and visible behaviors that executive boards must (and must not) display when they want to invest in the ethical climate and lower the likelihood of unethical behavior. It is advisable for (financial) organizations to examine how the ‘tone from the top’ is perceived by employees via anonymous employee surveys and, possibly for board members, to reconsider what kind of ‘tone at the top’ they want to broadcast regarding consumers, profit and pay.

In recent years, scientific and practical interest in the strategic management of countries' financial development has grown significantly. However, an analysis of publications on this topic indicates the absence of a methodology to make strategic decisions on the formation of goals and priorities for financial development. The purpose of this study is to develop a methodology for the strategic management of the financial development of countries. The study uses methods of systemic, comparative, GEP analysis, and a rule-based judgment method. The result of the study is the development of a concept that allows defining strategy, quantified strategic goals and priorities for financial development, and its testing in OECD countries. The novelty of the research lies in the systematic approach to the formation of strategic goals and priorities based on the System of National Accounts, the multi-level system of key indicators of financial development, criteria formalizing alternative strategies, and rules for making strategic decisions. This is the first time such a concept has been proposed. The advantages of the developed concept are high representativeness, objectivity, and a wide range of applications. Its use will improve the quality of strategic management of countries' financial development and ensure transparency in government decisions. Doi: 10.28991/ESJ-2023-07-06-09 Full Text: PDF

This research paper aims to investigate. the impact of inflation. on financial sector performance in Western. Balkan. countries. The topic was chosen considering the financial sector’s fundamental role and its. impact on sustainable economic growth. This impact is measured through the effect that macroeconomic determinants of financial. performance such. as inflation, GDP. growth, general government final consumption expenditure, trade, and the lending interest rate have on credit to private sector as a share of GDP and broad definition of money as a ratio of GDP, which were used to proxy financial sector development. The data are provided by the World Bank as well as the Central. Banks. of the respective countries, for the period 2002–2021. The research methodology consists of different panel regression models such as OLS, OLS robust, Fixed effects, Random effects, and Generalized method of moments (GMM). Findings indicate that domestic credit to the private sector and inflation are positively correlated, whereas broad money and inflation are negatively correlated.

Abstract This study aims to analyze the research work and present an SLR (Systematic Literature Review) on the initiatives taken by players in the banking sector, especially toward the technological innovations done in the field of AI (Artificial Intelligence) and ML (Machine Learning) that have contributed to the growth of the sector as well towards the ease of doing and building trust amongst consumers in the digitalized era of Banking. Growing security risks in cyberspace accompany the enormous and complex digital versions of virtual services. In total, 734 articles were reviewed to explore how Artificial Intelligence and Machine Learning have been used in various banking facets and how they have evolved to cater to different banking sector requirements. The findings reveal the areas where these modern-age technologies have been adopted and where the same can be used efficiently. Lastly, this study elaborates and evaluates the applications of these technologies on the parameters of scalability going further, keeping in mind the unprecedented dynamic times, and serving the very purpose of banks and how the banks are dealing with all the opportunities and challenges these new technologies bring in. This SLR also provides an overview of the research that can be taken up in future by the researchers in this domain.

Protection of financial resources is one of the priority tasks of the state, which determines its independence and subjectivity. This is especially relevant in the case of Ukraine, which is conducting full-scale military operations, therefore the study of the cyber security problem of the financial sphere of Ukraine and the formulation of recommendations for their solution became the purpose of this study. Methods of statistical analysis, systematization and synthesis were used to analyse the dynamics in the field of protection of critical information, whereas the intelligence method, based on open sources, was used to reveal the main trends, methods, and tools of modern cyber fraud. As a result, a list of problems and threats to the financial sector of Ukraine was formed. An assessment of existing trends in the effectiveness of countering such challenges is given, and several recommendations have been developed to prevent the leakage of personal data and the vulnerability of financial structures. Such recommendations included the introduction of clear algorithms for personnel behaviour, separation of subsystems with different levels of access and their restriction of access to external networks, as well as personal digital security rules – use of two-factor authentication, prohibition of transmission of passwords and temporary codes, etc. In the context of the dynamics of the growth of the number of Internet users over the last five years in the world, the international principles of ensuring information security and the legislation of Ukraine, which regulates actions to protect against cyber-attacks, were analysed. The practical significance of the research lies in finding ways to solve problems in the field of information security of the financial sector and forming recommendations that may be useful to the management of financial institutions

The purpose of this research is to improve the understanding of the external technological context of Artificial Intelligence applied in financial services, together with other technological solutions such as digitization, automation, cloud computing and licensing. The authors studied the external technological context by analyzing the technology providers that are represented by the companies with CAEN code 620 - Service activities in information technology. The purpose of this study was to obtain and analyze answers to six research questions, as follows: what is the role of service providers, what are the other technologies offered by them together with Artificial Intelligence, how can this technology be effectively implemented, what is the involvement users in application development, if there will be specific training and what is the level of implementation of Artificial Intelligence in financial services. The authors found that often the investigated companies use their technology services only for banks, Fintech and large financial companies. Therefore, for small and medium-sized companies, the service providers included in the study are not suitable, and further research should be carried out in this regard. An interesting result emerged from the study of long-term relationships between the technology company and the financial company to improve the solutions and provide the necessary maintenance services until the solutions provide results with close to 100% accuracy.

The article explores data mining methods that allow us to get helpful information from the data. The possibility of using these methods in practice in the financial sector was considered. Since financial activity is closely related to our social life, the use of data mining methods plays an essential role in the analysis and forecasting of the financial market in the modern era of big data. However, due to differences in the experience of researchers in different disciplines, it is not easy to use data mining methods when analyzing financial data. Therefore, creating a methodological basis for the practical application of data mining methods in the analysis of financial data is an urgent issue. The purpose of this article is to create a methodological basis for using data mining methods for efficient trading. When processing product data, a priori methods and visualization methods were used, and their implementation in practice was described. As a result, scenarios of computer applications were created as a sample of the practical implementation of the algorithms of these methods. Building a quantitative trading strategy requires first statistical analysis of the information in the market and then testing the quantitative model on the collected data. This study developed a quantitative trading system based on data mining methods. The primary development tool used is the Jupyter web platform, and three cores have been developed: quantitative data selection, strategy testing on data, time series analysis, and visualization. The developed system supports modules for making simple trading decisions.

Abstract Modern financial markets produce massive datasets that need to be analysed using new modelling techniques like those from (deep) Machine Learning and Artificial Intelligence. The common goal of these techniques is to forecast the behaviour of the market, which can be translated into various classification tasks, such as, for instance, predicting the likelihood of companies’ bankruptcy or in fraud detection systems. However, it is often the case that real-world financial data are unbalanced, meaning that the classes’ distribution is not equally represented in such datasets. This gives the main issue since any Machine Learning model is trained according to the majority class mainly, leading to inaccurate predictions. In this paper, we explore different data augmentation techniques to deal with very unbalanced financial data. We consider a number of publicly available datasets, then apply state-of-the-art augmentation strategies to them, and finally evaluate the results for several Machine Learning models trained on the sampled data. The performance of the various approaches is evaluated according to their accuracy, micro, and macro F1 score, and finally by analyzing the precision and recall over the minority class. We show that a consistent and accurate improvement is achieved when data augmentation is employed. The obtained classification results look promising and indicate the efficiency of augmentation strategies on financial tasks. On the basis of these results, we present an approach focused on classification tasks within the financial domain that takes a dataset as input, identifies what kind of augmentation technique to use, and then applies an ensemble of all the augmentation techniques of the identified type to the input dataset along with an ensemble of different methods to tackle the underlying classification.

Savings are important determinants of wealth. At the macroeconomic level, governments attach importance to saving money in order to make new investments, produce new capital goods, and sustain economic growth. However, due to the high level of internal and external debt in Djibouti, it is nearly impossible for the country to achieve domestic savings. Hereby, the major aim of this study is to examine the dynamic effect of financial sector development in stimulating the gross national saving of Djibouti from the period 1987 to 2021. The paper considered numerous indicators as measurements of the financial sector development including FDI inflows, domestic loans to the private sector, central bank assets to GDP, and money supply. To proceed with the analysis, Non-Linear Autoregressive Distributed Lag (NARDL) was performed and according to the model, the findings highlighted that the Djiboutian financial industry is still in its early development and has not yet made a substantial contribution to boosting the country's national savings. Nevertheless, the gross national saving of Djibouti was still positively prompted by significant components of the financial sector development, such as the positive shocks of FDI inflows and both the negative shocks of central bank assets and money supply. While both the positive and negative shocks of the credit offered to the private sector were uncovered to diminish the national savings in the long run. In conclusion, the current research will help governments and policymakers understand the best ways to use the financial sector to raise gross national savings. It will also present evidence of how to implement long-term initiatives that can lower public debt and encourage savings. Not to mention, the article provides information on the value of long-term investments.

In recent years, the issue of environmental pollution and climate change has led the scientific debate to focus on social issues, environmental protection, and human rights, deepening the topic of sustainable economic development. To provide stakeholders evidence on economic, environmental, and social performance, all corporate organizations must supplement traditional financial reporting tools with Non-financial information, following numerous standards, frameworks, and guidelines. The topic of Non-financial disclosure is widely investigated with reference to industrial companies, while the financial institution sector represents a context that is still little explored. Indeed, financial institutions are significant promoters of Corporate Social Responsibility (CSR), and even if their operations do not have direct impacts on the environment, they can encourage the allocation of their capital in socially responsible investments, thus contributing to the spread of sustainability culture in the financial system and among citizens. This paper analyzes the main sustainability frameworks, standards, and guidelines used by global systemically important banks (G-SIBs) for disclosure on environmental aspects along with social and governance factors, investigating the attention degree of financial institutions toward the sustainability issue.

AbstractThe current study investigates the role of eXtensible Business Reporting Language (XBRL) on the transparency and efficiency of information disclosure in Jordanian financial companies. Based on a sample of 124 respondents, including accountants, academics, and auditors with a background in XBRL. We find that there is a significant positive impact of adopting XBRL on improving information transparency and efficiency of Jordanian financial companies. XBRL reporting leads to better, more relevant, reliable, and transparent financial information, simplifying preparing group financial statements. XBRL is more critical for sustainability reporting than financial reporting because sustainability reporting is primarily optional. XBRL holds more potential for promoting corporate social and environmental sustainability performance reporting. The study heightened the importance of using the XBRL framework in preparing their financial reports to increase the level of confidence by external parties in the management system of these companies. While this research contributes to the existing knowledge base, it also underlines the need for further exploration into this field. The implications for regulators and financial companies are clear, and addressing the identified limitations can refine future research efforts. XBRL continues to be a vital tool in financial reporting, offering opportunities for growth, transparency, and efficiency in Jordan and beyond.

The overall degree of financial development of the State depends on innovative development of the financial sector. In this regard, it is important to conduct a comprehensive assessment of the characteristics, scopes and limits of the application of digital financial innovations both at the State level and at the global level, which determines the relevance of the research topic. The aim of the research is to develop an approach to assessment of the characteristics, scopes and limits of digital innovations in the financial sector and its approbation of the approach by the example of Russia. At the theoretical level, the method of literature analysis, abstraction and aggregation are used in the research. At the empirical level, methods of statistical, structural and coefficient analysis are applied. The results of the research in terms of the development of the theory of innovation in the financial sector are development of an approach to assessment of the characteristics and scope of digital innovation in the financial sector, to allow a comprehensive assessment of the development of financial innovation at the State level and comparison of the assessment results by country or with the world average values of the indicators proposed for assessment. The paper also proposes classifications of scopes and limits for the use of digital financial technologies, which allow for a qualitative analysis of the integrated development of financial innovations. Empirical research has allowed us to make conclusions about the accelerated development of the Russian financial technology market compared to the world average values based on the developed theoretical approach. At the same time, the problems of further development of financial innovations have been identified, namely, the low level of trust of the Russian population in small businesses in the field of financial technologies, limiting the inflow of foreign investment and narrowing the external market for the dissemination of Russian financial innovations in conditions of political instability. The following measures are proposed to solve these problems: improving the quality of education and improving the working conditions of specialists in the field of innovations, developing programs for concessional lending to small businesses in the field of financial technologies, and improving the financial literacy of the population as a consumer of innovative financial services.

One of the best-known innovations of the recent past is blockchain. Due to its usability, it has generated considerable interest in several economic areas. A decentralised system’s approach can potentially reshape existing industries or make them redundant. Such technology can add a new dimension to processes, which is particularly relevant for the banking sector in the future. This demonstrates a great necessity to deal with blockchain with respect to market position and competition. This paper aims to provide insight into the current potential of blockchain applications in banking procedures. The benefits of process improvement in the financial sector are also outlined. This research shows that many experiences and adequate knowledge are already available. According to recent research, this technology will benefit banks’ business models, performance, and capabilities. However, blockchain is still in the phase of research and development, which is a crucial aspect of the banking industry.

This study focuses on the implications of corporate social responsibility (CSR) on the strategic risk of the listed financial and non-financial firms in Nigeria. The population of the study consists of 154 firms, while the census sampling technique was adopted to arrive at an adjusted population of 133. The correlation research design was implored using a positivism approach. Descriptive statistics, correlation matrix, multiple regression, confirmatory analysis and T-test were used to analyze the data extracted from the annual report. Hence, the result of the study shows that corporate social responsibility has a negative impact on strategic risk. The confirmatory factor analysis found that CSR engagement influences strategic risk (SRK), but to varying degrees, contradicting findings from the Frontier Model, PCSE, and GLS that both sectors will have similar results if they engage in CSR effectively. It is therefore suggested that the management of strategic risks need to be more integrated in corporate strategy as the capacity to listen to business stakeholders' viewpoints on social and environmental issues becomes a competitive need.

The proposal for the Artificial Intelligence regulation in the EU (AI Act) is a horizontal legal instrument that aims to regulate, according to a tailored risk-based approach, the development and use of AI systems across a plurality of sectors, including the financial sector. In particular, AI systems intended to be used to evaluate the creditworthiness or establish the credit score of natural persons are classified as “high-risk AI systems”. The proposal, tabled by the Commission in April 2021, is currently at the center of intense interinstitutional negotiations between the two branches of the European legislature, the European Parliament and the Council. Without prejudice to the ongoing legislative deliberations, the paper aims to provide an overview of the main elements and choices made by the Commission in respect of the regulation of AI in the financial sector, as well as of the position taken in that regard by the European Parliament and Council.

Loss of financial potential is one of the most serious risks enterprises face. The risk management system for the loss of financial potential helps enterprises identify, evaluate and manage risks that may affect their financial condition. This system allows enterprises to reduce the possibility of financial losses andensures more efficient work with financial resources. The purpose of the article is to identify the main imperatives, which are the basis for ensuring the development of financial potential and the justification of measures to neutralise the risks of business entities in the agricultural sector in Ukraine. The main sources of loss of financial potential of enterprises in the agricultural sector of the economy of Ukraine have been identified. It has been established that currently, the biggest threats are: low business activity, a low level of technological equipment and innovation, negative profitability and slow turnover of capital, lack of access to credit for small- and medium-sized enterprises and climate changes. Agricultural enterprises are subject to various risks of loss of financial potential, which may be associated with changes in weather conditions, animal epidemics, changes in legislation, currency risks, etc. Neutralisation of these risks is an important element of effective management of an agricultural enterprise and ensuring its stability. It has been proven that one of the ways to neutralise risks is to create a reserve fund in case of unexpected events that may lead to the loss of financial potential. Such a fund may include funds that can be used for replanting crops, repairing infrastructure, reimbursing losses from animal epidemics and other needs. It is proposed to minimise the risks with the help of insurance. Insurance can be provided at different levels: from crop insurance to emergency insurance. Having insurance allows the company to reduce financial losses in case of unexpected events. In addition, the enterprise can use financial instruments to reduce currency risks. These tools will enable you to protect the company from changes in exchange rates.

The role of commercial banks and financial institutions has been described as crucial for the circular economy since they are key actors in financing companies and projects. The facilitating potential of some financial instruments managed by the financial sector has not been studied in connection to extending the circular economy in the environmental accounting framework. Particularly, the renting contracts service, which has been associated with more sustainable performance, shows interesting circular characteristics for servitization and the sharing economy. By studying the details of renting contracts of a financial institution over 18 years as a case study in Spain, this research demonstrates how this type of service, applied to vehicles, can render important benefits in terms of use of resources, environmental impact, energy efficiency and reduced carbon emissions. Measuring these quantitative impacts and reporting about them is important from an environmental accounting basis and in the framework of the European Union taxonomy for sustainable finance. The results obtained from the stakeholders’ perspective highlight the pivotal role of existing financial instruments and the need for new metrics for reporting linked to the servitization of the economy as a specific circular issue. This paper contributes to the academic literature by bringing empirical results to a still recent line of research. For practitioners, we provide innovative metrics for circular economy in the financial sector, and for policymakers, this research highlights the wider role of financial institutions in promoting circular economy within the sustainability framework.

As one of the pillars of the economy, financial institutions play important role in implementation of the concept of corporate social responsibility (CSR). The paper is focused on CSR in the financial sector, i.e. the perception of employees in banks and insurance companies in Serbia on the level of development of CSR regarding its external dimensions, such as responsibility toward beneficiaries, community and environment. The aim is to identify the employees' perceptions of external aspects of CSR in the financial sector, as well as to determine the impact of selected external aspects on the expected CSR benefits. The results of the conducted empirical research demonstrate a positive attitude of employees in financial institutions in the Republic of Serbia towards external aspects of CSR, as well as statistically significant impact of CSR towards beneficiary and environment on the expected CSR benefits. Additionally, the results indicate that CSR towards the community does not affect the expected benefits. Accordingly, we identified some practical and theoretical implications that can serve as a basis for creating and implementing a strategic approach to CSR in financial institutions.

Blockchain is transforming the banking sector and offering opportunities for significant cost reduction and efficient banking services. However, implementing blockchain is a challenge due to lack of adequate knowledge and skills on how to implement the technology. As a result, there are very few market-ready blockchain banking products and organisations are unable to realise the promised value. This paper presents an overview of the banking sector's blockchain use cases, design and implementation considerations and techniques. The aim is to offer an evidence-based primer to guide researchers and practitioners. The study relies on the systematic literature review method and reviews a total of 45 papers comprising 26 peer-reviewed scholarly articles and 19 technical reports from the banking industry. Leximancer software is used to support the thematic data analysis. The results show for the banking sector an increase in experimentation efforts geared towards the development of payment systems. The results also indicate key considerations from a technological, organisational and environmental perspective. The study highlights that platform selection, scalability and resilience are some of the critical technical considerations for implementing blockchain banking systems. Organisational considerations include collaboration and governance-related challenges. From an environmental perspective, the study notes several legal and regulatory considerations. This study contributes to the existing literature on blockchain adoption in banking, which is still in the nascent stage. The study also offers a research agenda for further understanding of blockchain implementation in the banking sector. Opportunities for further research are noted in the areas of interoperability, governance, security and privacy.

Major emergencies cause massive financial risk and economic loss. In the context of major emergencies, we propose the GPD-CAViaR model to depict the extreme risks of financial sectors, and utilize the TVP-SV-VAR model to analyze their transmission effect. We find that (ⅰ) the securities sector has the highest extreme risks among the four financial sectors; (ⅱ) when major emergencies occur, the extreme risks of various financial sectors increase rapidly; (ⅲ) the transmission effect in short term is stronger than that in medium and long term; and (ⅳ) the transmission effects at different time points are relatively consistent.

The sphere of trust in the financial sector, which is actively developing in the conditions of financial crises and recessions, is accompanied by a significant increase in the scientific literature that requires detailed analysis. The changes faced by trust in the financial sector over the past thirty years have remain unprecedented. Recent developments in financial technologies, blockchain, risk assessments have led to a renewed interest and rapid growth in the number of academic publications on trust in the financial domain. A number of literature reviews have been published focusing on specific aspects and trends of trust in the financial sector. However, far too little attention has been given to developing a global vision of academic knowledge about trust in the financial sector from a statistical perspective. This study was designed to provide insights and updates that have not yet been fully understood or described by other reviews in the domain of trust in the financial system by applying a thorough bibliometric (Scopus tools, Google Trends) and network (VOSviewer) analysis. This paper will make it possible to create a global picture of the phenomenon, to determine the dynamic aspects of trends from a statistical point of view, using content-contextual, descriptive, comparative, cluster, and evolutionary-temporal methods. The methodological basis of the study is a set of scientific publications indexed in the Scopus scientometric database, which were analysed using ScopusTools and VOSViewer analytical tools. A total of 1,148 academic studies published between 1967 and 2020 were analysed, including 364 authors, 158 journals, and 101 countries. By applying rigorous bibliometric and network tools, established and emergent research clusters were identified based on the key research topics and interrelations. With the help of built-in tools of the Scopus scientometric base, the main stages of scientific interest in the trust in the financial sector were determined. The most significant studies in this area by influence and citations were identified. In addition, the classification of the research on trust in the financial sector by scientific fields was considered, and the geographical centers of research were determined. A comparative analysis of Google searches showed that trust in the financial sector could be considered as one of the critical conditions for overcoming macroeconomic imbalances. Cluster analysis made it possible to identify five main clusters of scientific research. The main research findings showed that trust in the financial sector is one of the most multidisciplinary phenomena, and the keywords such as human, economy, financial management, finance, organization and management, private sector, public sector are closely related. The results of the study provide a solid roadmap for further consideration in this area.

The banking sector is one of the most important components of the financial sector. Starting on February 24, 2022, both businesses and ordinary citizens felt their dependence on hostilities, as the payment system was already under a heavy load in the first few days, which almost led to its collapse. The banking sector has received many challenges, the main of which are: a decrease in income relative to expenses, an increase in the share of non-performing loans, mass migration of people abroad, and the loss of part of the staff. The NBU and other subjects of the financial sphere create all the conditions for serving the economic and banking interests of the population and ensuring a high level of competitiveness of the banking sector. Looking at the situation today, the domestic banking system has undergone and is undergoing significant upheavals due to the fact that it has to "work" in conditions of uncertainty, but still banks fulfill their obligations and comply with regulations. However, we can also observe certain transformational processes, such as: implementation of the Power Banking project (a perimeter built on the basis of regular bank branches that will provide financial services to clients in conditions of a long-term lack of power supply); uninterrupted operation of the contact centers of the National Bank is organized; new functions have been added to the BankID system, which enables financial sector entities to solve their problems a little easier and faster, etc. The article is devoted to highlighting the main problems of the functioning of the banking system of Ukraine in the conditions of a special state. The importance of the study lies in the need for urgent implementation of measures that will contribute to reducing the risks of the financial system and banks as a whole to a possible minimum.

There is some level of uncertainty as to whether private sector credit interacts with finance sources for growth to significantly influence channeling funds for investible purposes in Nigeria, given the nation’s unique characteristics. This study examines the role of various sources of growth finance on private sector credit in Nigeria. For this purpose, the study utilizes secondary data (1980–2018) sourced from CBN statistical annual reports. The study further employs the ARDL-Bounds Co-integration test to test out the hypothesis after stationarity testing. The study finds that stock market capitalization had a positive and significant influence on private sector credit compared to remittance inflows and gross domestic savings in the long run among the sources of growth finance indicators. Furthermore, remittance inflows reported a positive but statistically insignificant relationship, while gross domestic savings had a negative and insignificant coefficient. The study concludes that only stock market development inflow transmits to the private sector’s credit at 10 percent among the various growth finance sources.

The main hypothesis of the paper was the assumption that the increase in the level of innovation of the financial sector in the post-Soviet states and young European Union (EU) members with an imperfect banking sector and a protracted financial crisis is accompanied by difficulties accessing financing sources and significantly depends on the volume foreign banking capital. The aim of the study is to identify the correlation between the growth of financial innovativeness of the country and the level of foreign banking capital, using Panel data analysis from 2009 to 2019. Unlike previous studies, it was taken into account that the level of financial innovation of the republics of the former Soviet Union is increasingly dependent on external credit resources, while the innovative development of the EU countries becomes financially independent, and this constitutes the scientific novelty of the research. The results confirm the relationship between foreign banking capital and the growth of financial innovativeness of the country, especially with its low and medium levels. To test his hypothesis, the author presented empirical models with the conditions of interaction with the Financial Innovativeness Index. Based on a comparison of indicators of the financial innovation of the country and foreign banking capital, clusters of countries are distinguished according to the nature and direction of the relationship of the analyzed indicators. The author concludes that the increase in the level of innovation in the financial sector of the countries of the former Soviet Union and young EU members depends on the amount of foreign banking capital and the need to consistently expand the tools for the country’s economic growth by attracting it.

Objective: to study the processes of introduction and practical implementation of ESG standards in the Russian banking sector and to assess their impact on the prospects for the financial market development in general.Methods: logical and structural analysis, system-functional approach, formal legal method.Results: the author reveals the essence and features of such a relatively new phenomenon for the Russian banking sector as ESG-principles of doing business and responsible financing. The study reveals the prerequisites for the formation of modern ESG concepts in international practice, analyzes the possibility of their implementation in the practical activities of the Russian financial sector subjects and assesses the prospects for the Russian banking system development within the paradigm of responsible entrepreneurship and sustainable development.Scientific novelty: consists in the complex study of relations associated with the ESG principles implementation in the Russian financial sector. A distinctive feature of this work is the focus on both practical issues of implementing the ESG principles in the Russian financial sector and assessing the prospects for the ESG banking development in the Russian Federation.Practical significance: the formation of a certain theoretical basis necessary both for studying the essence of the ESG approach and the sustainable development of financial sector entities, and for developing proposals for adjusting regulatory policy in this area in the future.

تهدف الدراسة إلى إبراز تحديات ومتطلبات تطوير الشمول المالي في الجزائر باعتباره عامل أساس ي في تحقيق أهداف التنمية المستدامة، وخلصت الدراسة إلى وجود تحسن ملحوظ في مؤشرات الشمول لمالي خاصة منذ جائحة كوفيد 10 . لكن رغم ذلك لا تزال مستوياته متدنية لجملة من العوامل التي تحد من استخدام الخدمات المالية الرقمية بصورة أشمل، مما يتطلب بذل المزيد من الجهود كدعم البنية التحتية الرقمية والمالية والتثقيف المالي. This study aims to highlight the challenges and requirements of developing financial inclusion in Algeria as a key factor in achieving sustainable development goals, and it concluded that there is a significant improvement in financial inclusion indicators, especially since the Covid 19 pandemic. However, its levels are still low due to a number of factors that limit the use of digital financial services, which requires more efforts such as supporting digital and financial infrastructure and financial education.

The purpose of the article is to systematize the main directions of digital transformation of the financial sector of Ukraine, to characterize their impact on the post-war recovery of the Ukrainian economy and to analyze the risks of forming an information-digital society in connection with the active implementation of a digital strategy. As a result of the study, it is proved that special conditions that are established at present in Ukraine make inevitable the digital development strategy to ensure economic activity under martial law and post-war recovery. The publication systematizes the main mechanisms for ensuring financial access under conditions of martial law. The advantages of the actively implemented conception of open banking for investment processes and post-war reconstruction are demonstrated, while the risks of information availability related to open banking are shown. The role of neobanks in the context of post-war recovery is characterized. Given that the development of digital financial services will be associated with the further introduction of service personalization technologies, it is concluded that this will lead to the growth of financial inclusion and the deep integration of digital financial institutions into the economic and social existence of financial services consumers. The risks of these processes are identified, in particular the risks of cybersecurity and the growth of information asymmetry

The military actions in Ukraine have actualized the transformation and revision of existing approaches to assessing the country’s economic security. Financial security, which is considered in this paper through its standard components such as financial sector security, stock market security, debt and budget security, has a significant effect on the formation of economic security. At the same time, digitalization in the financial sector was identified as a new component that provides access to financial resources even in the context of the deployment of hostilities in Ukraine. Therefore, this study assessed the effect of the state of financial security, taking into account the importance of financial digitalization for the economic security of Ukraine. Based on quarterly data for the period 2015–2021, 42 indicators were analyzed, which were grouped according to the relevant components of financial security, and their integral indicators were determined using the Harrington method. A factor analysis of the formation of economic security was carried out using the principal components analysis, and an integral indicator of a country’s economic security was calculated based on the Kinney multiplicative convolution. The integral indicator of economic security for 2025–2021 doubled and amounted to 0.63 units, which was due to the increased influence of financial digitalization processes, all other components either slowly decreased or were stable. Thus, the reserve of economic security that was formed during this period, including due to the intensive digitalization of the financial sector, allowed Ukraine to survive the first weeks of the war and ensure the functioning of the financial system. Acknowledgment Comments from the Editor and anonymous referees have been gratefully acknowledged. Inna Shkolnyk and Yevhenii Kozmenko gratefully acknowledge financial support from the Ministry of Education and Science of Ukraine (0122U000774 “Digitalization and transparency of public, corporate and personal finance: the impact on innovation development and national security”).

Introduction. The digital changes taking place in all spheres of society are most evident in certain sectors, especially in the fi nancial sector. One of the factors of the modern development of a sustainable economy is the digitalization of society associated with the rapid development of information technologies. Informatization of this sector in Russia is associated with the synthesis of legal, economic, social, political changes. Theoretical analysis.The article is devoted to the key trends of informatization of the fi nancial sector of Russia. Consideration of theoretical and methodological approaches to the study of the penetration of digital technologies into the fi nancial sector shows the lag of the Russian practice of deploying digital technologies from Western practices, and rapid growth in 2020 under the infl uence of the covid crisis. Empirical analysis. Analysis of the main suppliers of information technologies in the fi nancial sphere and their products has been carried out. Priority directions of development of information technologies in the fi nancial sector and ways of their implementation are identifi ed. The main approaches to strengthening information security and reliability of fi nancial technologies in Russia have been studied. Synthesis of materials on research of information technologies in the fi nancial sector of Russia has been carried out. Results. Modern realities are such that new technologies based on digital services are actively being introduced into Russian practice, which changes the structure of fi nancial market entities, makes fi nancial products more accessible to citizens and businesses. The penetration of IT companies into the fi nancial services market starts the process of transforming the delivery of fi nancial products and services fi ntech becomes an independent sector of the economy. The format of the fi nancial sector, 24/7, gives users round-the-clock access to services and products, but at the same time forms a range of risks that need to be taken into account and addressed. Digitalization of the fi nancial sector, based on a global rethinking of information solutions, is the key to the transition to sustainable development.

Text-based chatbots are implemented in the financial sector to enhance the relationship between the customer and services provided by the sector, and also to address external challenges and customer requirements. The chatbot technology in the financial sector serves to examine customers' frequently asked questions and the representation of the process using machine learning. In light of this, this study presents a comprehensive systematic literature review of articles focused on text-based chatbots in the financial sector. It describes the understanding of chatbots in the financial sector in terms of implementation, adoption intention, attitude toward use and acceptance; it also describes how people experience chatbots, specifically in terms of perception, expectation and trust, as well as how they are engaging and emotionally motivated; management of the security and privacy vulnerabilities of the chatbots; and identifies the potential strategies that can hinder the efficient, successful evolution of chatbots in the financial sector. Finally, the main findings regarding the use of text chatbots in the financial sector are presented; additionally, the open issues in current research are highlighted and a number of research opportunities that can be pursued in the future are suggested.

The article presents author’s view on the current problems facing the banking system of the Russian Federation as part of the transition to digital banking services, especially aggravated due to the massive using of remote channels of interaction caused by the restrictions of the pandemic period. The author analyses the current problems of financial sector due to increased criminal cyber attacks and offers his recommendations to counter these crimes. There is evidence of the needs to revise the concepts and strategies of the development of banks in connection with digitalization, to improve approaches to information security. Finally, the author concluded that a key element in the process of digitalization of banking activities is information security, and the soundness of banking institutions can be ensured only by the joint efforts of the state, banks, and their customers.

The concept of privacy has broad ramifications, and it is implemented in a number of disciplines, ranging from philosophy to computer science, political science and legal science. This paper covers the impact of artificial intelligence on privacy protection, especially in the finance sector. Privacy protection is associated with control over information about personal data, also known as private information. This research is a normative legal research of analytical nature, and it is conducted by studying and interpreting theoretical matters relating to the principles, conceptions, doctrines and legal norms pertaining to the problems. The results of this research show that the concept of privacy in the era of artificial intelligence in Indonesia is best achieved by combining comprehensive rules with self-regulation to serve as a balancing agent between laws and technology in order to control and fulfill the protection of personal data in the era of artificial intelligence.

The study is concerned with the global trends in the digitalization of the financial services market. The article distinguishes and describes the main components of accelerating the growth rate of information changes in the field of financial services on the basis of digitalization. Upon the understanding that the digitalization process is progressive, its evolution is examined, wherein three stages of its development are allocated. Leading factors in the development of digitalization of the financial services market are identified, among which, first of all, should be noted such ones as increasing the level of investment in the development of financial technologies and innovations, the spread of e-commerce based on the use of cashless payments, the transition to services aimed at customer needs, and increasing the level of financial inclusion, etc. The consequences of digitalization of the financial services market are also formulated: computerization of structural components of the financial services market and the formation of its financial digital space; directedness of financial activities towards use of the latest digital technologies; creation of the main elements of informatization of the infrastructure of the financial services market and others. On the basis of finding out the impact on the financial services market of innovative and information technologies related to the global network, the global leading tendencies in its digitalization are formed. It is proved that digitalization is a modern direction of formation and development of the insurance services market, which includes technological innovations in combination with information and communication systems, which further serves to improve the quality of service for both existing and potential consumers of financial institutions. It is determined that the formation of a real digital society and the latest digital space, based on the use of various digital technologies, are the main factors that positively affect the development of digitalization in the financial services market.

Relevance of the research topic. In the context of globalization, one of the key priorities of financial policy in the world and in Ukraine is to reduce the negative impact of exogenous and endogenous factors on economic growth, creating conditions for the development of the financial system. Formulation of the problem. In the absence of strategic coordination of public administration bodies in the financial sphere, the risks of reducing its effectiveness may increase significantly. Analysis of recent research and publications. Problems of development of the financial system in the context of globalization are revealed in many scientific studies of foreign scholars: J. Keynes, R. Musgrave, P. Samuelson, J. Stiglitz. Among domestic scientists should be noted such as: A. Epifanov, Y. Pasichnyk, I. Salo, V. Fedosov and others. Selection of unexplored parts of the general problem. Significant levels of uncertainty and variability of socio-economic problems require the restoration of control and the establishment of strategic orientation of the financial system. Problem setting, research goals. The objectives of the study are: to determine the features of the financial system of Ukraine in modern conditions; to analyze and evaluate its indicators. The purpose of the study is to substantiate the priorities of Ukraine's financial system in the context of globalization. Method or methodology of the study. To achieve this goal, a set of general scientific and special methods was used: system-structural analysis; calculation and analytical method; formal-logical analysis; method of scientific abstraction. Presentation of the main material (results of work). The peculiarities of the functioning of the domestic financial system are determined, the indicators are assessed and the priorities of its development are substantiated. Field of application of results. The results of the study can be used in the process of reforming the financial system and its components. Conclusions according to the article. At this stage, an important task is to develop new scientifically sound approaches to the development of the financial system through the introduction of systematic monitoring of macroeconomic imbalances, which will improve the quality of macroeconomic and fiscal risks, create a single information base for sound management decisions in finance.

Shift workers are vulnerable to circadian misalignment, sleep disturbance and increased risk of impaired health. Studies concerning the sleep and health of individuals working shifts in the financial sector are lacking. We investigated sleep quality, sleep duration and associations with health in a UK financial organisation. Employees (n = 178; 61% male) completed an online survey comprising the SSI, PSQI, GAD-7, PHQ-9, WAFCS, EMQ-R and BMI. Three-quarters of employees reported poor sleep quality. Poorer sleep quality and shorter sleep duration were both associated with greater anxiety and depression symptoms. However, sleep quality demonstrated greater explained variance with symptom severity (anxiety: Rs2 difference = 13.2%; depression: Rs2 difference = 21.8%). Poorer sleep quality was associated with higher BMI, greater work-to-family conflict and poorer everyday memory (rs = 0.26–0.29), while shorter sleep duration was only significantly associated with higher BMI. Sleep quality did not differ depending on the nightshift type (“permanent”/“other”). Sleep achieved was shorter than perceived sleep-need for all consecutive shift types—especially night shifts (40 min–1 h 24 min). This preliminary study suggests that sleep quality, and to a lesser extent sleep duration, are associated with a range of health outcomes for shift workers within the financial sector, highlighting the need to increase organisational awareness of the importance of sleep for employee health.

Purpose – This paper aims to analyze and examine how an organization from the financial sector prioritizes its business processes and what criteria are adopted to select the most appropriate process for improvement projects. Design/methodology/approach – This descriptive research is based on an exploratory approach. Qualitative methodology was applied to a case study through on-site observation, documentation analysis and semi-structured interviews. Findings – The results confirm criteria mentioned in the literature, such as financial aspects and strategic impacts, but also raised a new critical issue: automation potential of manual processes, reflecting the current movement of process automation. Research limitations/implications – As a limitation of this study, it is worth mentioning the application in only one organization in the financial market and the small number of respondents, even though they occupy leadership positions in the organization. Practical implications – As a practical implication, the present work offers a direction for managers of the financial sector in structuring and applying models for prioritizing processes aimed at organizational efficiency. Social implications – Automation solutions for process improvement need careful study to minimize impacts in human resources reduction. In this sense, the eligibility of a process for automation must be carefully considered. Originality/value – This paper presents the evolution of the process prioritization model adopted by a large institution in the financial market, which has a significant presence in the Brazilian and international markets as a commercial and wholesale bank.

This study aimed to analyze the influence of macroeconomic variables on the behavior of stock prices of companies in the financial sector on the Brazilian stock exchange. The model of linear regression with panel data was applied in order to verify the relationship between the independent variables and the dependent variable. From the regression model coefficients, it is suggested that there is a negative relationship between the independent variable Special System for Settle-ment and Custody (Sistema Especial de Liquidação e de Custódia [Selic]) interest rate and the dependent variable, which suggests that an increase in the basic in-terest rate will imply a reduction in stock prices of the financial sector. The study also suggests that there is a positive relationship between the independent variable gross domestic product (GDP) and the dependent variable, assuming that, when there is an increase in the country’s wealth production, there is also an increase in the price of shares in the financial sector of B3.

The paper examines the impact of CSR on the financial performance of banks operating in the Republic of Serbia. The research was conducted on the example of seven banks for the period from 2006 to 2019, using panel data analysis. Parameter estimates were obtained using three different estimators, Pooled OLS, fixed effects method, and random effects method. The research results show that two dimensions of CSR have a statistically significant impact on the financial performance of banks; environmental responsibility has a positive influence on the business results expressed through ROA, while respect for the basic principles of business and the success of the bank's business has a negative influence.

Although there are many papers that examine the impact of intellectual capital on the performance of financial institutions, there are almost no papers that deal with developing markets. According to the author's knowledge, no one in Serbia has studied the effects of IC on financial institutions operating in the financial sector. This sector is extremely important for the Serbian economy since it is the leading sector in which the effects of modern information technologies are the most exploited and in which competitiveness is pursued by attracting new clients, by offering innovative solutions and services. Hence, the aim of this paper is to identify and analyze the IC's impact on financial performance in order to answer whether the impact of IC on the financial performance of financial institutions operating in developing markets has the same importance as the impact on financial institutions operating on developed markets, characterized by a high degree of innovation and IT equipment. The obtained results show that human and engaged capital have a statistically significant impact on financial performance, while structural capital does not.

Anticipating the likelihood of bankruptcy is essential for every business. Nevertheless, one of the most critical sectors of the economy is the financial sector. The bankruptcy of a company in the financial industry affects both individuals, businesses, and organizations, negatively impacting the economy. Therefore, it is essential to anticipate the likelihood of bankruptcy of companies in the financial sector and make management decisions to avoid the risk of bankruptcy. There are many methodologies for analyzing and predicting corporate bankruptcy that differ in content, number, and accuracy of measurable indicators, so it is crucial to identify which model is most appropriate for assessing the risk of corporate bankruptcy in a particular sector. Given that the financial sector plays a crucial role in economic development and that the consequences of their bankruptcy are harrowing, the aim is to identify the most sensitive model to the risk of bankruptcy in this sector. To achieve this goal, we reveal the concept of bankruptcy, present the internal and external causes of bankruptcy, and systematize the results of bankruptcy risk research of companies in the financial sector. Bankruptcy probability assessment models are also presented and compared, and their applicability to the financial industry is discussed. An analysis of the literature revealed that the most commonly used models for assessing the bankruptcy risk of companies in the financial sector are the Altman Z Index, the Ohlson O Index, and the Zmijewski X Index. After applying these models in the case of three banks (SEB bank, UAB Medicinos bank, and General Financing bank) using 2021. The Altman Z model found that the most sensitive bankruptcy predictor was the probability of bankruptcy. Article in Lithuanian. Bankroto tikimybės vertinimo modelių pritaikomumas finansų sektoriaus įmonėms Santrauka Iš anksto numatyti bankroto tikimybę yra svarbu kiekvienai įmonei. Vis dėlto vienas svarbiausių ekonomikos sektorių yra finansų sektorius. Finansų sektoriaus įmonės bankrotas paliečia tiek privačius asmenis, tiek verslo įmones, organizacijas ir lemia neigiamas pasekmes visai ekonomikai. Todėl labai svarbu iš anksto numatyti finansinio sektoriaus įmonių bankroto tikimybę ir priimti valdymo sprendimus siekiant išvengti bankroto rizikos. Yra daug metodikų, kaip analizuoti ir numatyti įmonės bankrotą, jos skiriasi turiniu, vertinamų rodiklių skaičiumi ir tikslumu, todėl svarbu identifikuoti, koks modelis yra tinkamiausias konkretaus sektoriaus įmonių bankroto rizikai vertinti. Atsižvelgiant į tai, kad finansų sektorius atlieka lemiamą vaidmenį ekonominio vystymosi procese ir jų bankroto pasekmės labai skaudžios, keliamas tikslas identifikuoti modelį, jautriausiai prognozuojantį bankroto riziką šiame sektoriuje. Įgyvendinant šį tikslą, straipsnyje yra atskleidžiama bankroto samprata, pateikiamos vidinės ir išorinės bankroto priežastys, susisteminti finansų sektoriaus įmonių bankroto rizikos tyrimų rezutatai. Taip pat pateikiami ir palyginami bankroto tikimybės vertinimo modeliai, aptariamas jų pritaikomumas finansų sektoriui. Literatūros analizė atskleidė, kad finansų sektoriaus įmonių bankroto rizikai vertinti dažniausiai taikomi modeliai yra Altman’o Z indeksas, Ohlson’o O indeksas, Zmijewski X indeksas. Pritaikius šiuos modelius trijų bankų (SEB banko, UAB Medicinos banko bei General Financing banko) atveju, naudojant 2021 m. finansines ataskaitas, nustatyta, kad jautriausiai bankroto tikimybę prognozuoja Altman’o Z modelis. Reikšminiai žodžiai: bankrotas, bankroto tikimybė, bankroto tikimybės vertinimo modeliai, finansinis sektorius.

The financial sector plays a crucial role in the economy, not only being a simple intermediary between creditors and borrowers, but also having a significant impact on the economy’s development and its various characteristics. For this reason, accounting for financial sector peculiarities is critical when developing policy-oriented general equilibrium models for practical use. This drives the interest of many researchers in development of approaches to describing the financial sector and financial frictions in DSGE models. In financial frictions models one can describe the production side of the economy in a simplistic way. However, it could be important to model the production sector in more detail. For instance, separating tradable and non-tradable sectors of the economy could be of great significance, especially for developing economies which depend on foreign trade a lot. In this paper we analyze the role of the financial sector and how important it is for transmission of monetary and fiscal shocks under different assumptions about the production sector. Namely, we compare two-sector economy with tradable and non-tradable sectors with a simplistic model which assumes that the economy produces only tradable goods. According to the results, financial frictions impact tradable and nontradable sectors asymmetrically. In the two-sector model the effect of financial frictions is quantitatively smaller than in the one-sector economy. Therefore, using the latter simplifying assumption could lead to overestimating the role of financial frictions in the transmission of monetary and fiscal shocks. In addition, the paper provides estimates of how changes in monetary and fiscal policy instruments impact the Russian economy given the existence of financial frictions.