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In an economic, social, and technological changing environment, creativity represents a competitive advantage for customer service-oriented organizations. As previous studies have not considered the role of creativity in the financial sector, this framework perfectly applies to the banking domain in which a permanent adaptation of the products for online communication is of paramount importance. Building off the 4Ps of creativity theory and the componential model of creativity, the present paper exploratory investigates the role of creativity in new product development processes in the banking system. A set of 30 semi-structured interviews with key specialists has been conducted. Focusing on the leading bank in Romania, and the largest in Southeast Europe, namely Banca Transilvania, the research emphasizes the way creativity is defined with respect to organizational performance, the role of creativity in developing good quality products, and the stimuli that trigger creativity in relationship with inside and outside stakeholders within the new product development process. The results show that, in a banking context, in which creativity implies a flow starting from idea generation to its implementation, the new product development process is based on multidisciplinary teams, mutual collaboration and communication, and attention to customers’ needs. [ABSTRACT FROM AUTHOR]

This article provides a detailed analysis of the public law regulation of the process of managing nonperforming assets, which pose a serious threat to the stability and efficiency of the Ukrainian banking system. Non-performing assets arising from borrower defaults have a serious negative impact on the financial condition of banks. In particular, they distort the asset structure, deteriorate the quality of loan portfolios, reduce liquidity and capital ratios, and directly threaten the stability of the banking system and the economy as a whole. This paper discusses various ways to address NPLs. Internal methods include loan restructuring, which reduces the financial burden on borrowers and allows banks to receive partial repayments, and bank recapitalization, which increases equity to strengthen the financial base. External instruments include the sale of non-performing assets to third parties, such as specialized firms or investors, which allows banks to reduce risks and secure the management resource s necessary for their core business. One of the important tools mentioned in this article is the creation of resolution banks specializing in the sale of non-performing assets. Such a bank would help to solve the problem of low-quality assets and allow general banking institutions to focus on maintaining stable operations. It also emphasizes the importance of realistic market valuation of non-performing assets to make sound business decisions. This can reduce potential financial losses and improve the overall efficiency of asset management. The study also discusses the need to improve the legal and regulatory framework for managing non-performing assets. The author emphasizes that without adequate legal regulation it is impossible to ensure effective state control and stability of the banking system. The author analyzes foreign experience of stabilizing the banking system during the financial crisis. The author focuses on the creation of "bad" banks - specialized institutions for managing distressed assets. This experience has already been successfully implemented in a number of countries and can become an effective tool for the recovery of the Ukrainian banki ng system. Thus, the article concludes that a comprehensive approach to the resolution of distressed assets using both internal and external instruments, improved legal regulation and the application of international experience can make a significant contribution to the stabilization of the Ukrainian banking system, restoration of its efficiency and public confidence in it. [ABSTRACT FROM AUTHOR]

Innovativeness is an integral feature of the modern economy, particularly in the banking sector. The authors of this article aimed to identify potential scenarios for the transformation of the banking system under the influence of innovations and increased competition from fintech organizations. They sought to explore the components of the market mechanism for the self- regulation of innovative activities in commercial banks, the tools and methods of state influence on these processes, and, based on a study of global experience, to justify proposals for intensifying the introduction of innovations by commercial banks in Ukraine. The study examined five possible scenarios for the transformation of Ukraine’s banking system: (1) modernization of existing banks using the latest technologies, allowing them to maintain relationships with clients; (2) replacement of traditional banks with new (neo-banks) that operate under a different business model; (3) fragmentation of financial services between specialized fintech companies and traditional banks; (4) banks being pushed out of direct client relationships and becoming service providers; and (5) the complete displacement of traditional banks, replaced by other structures. The analysis of transformations in Ukraine’s banking system revealed elements of each of these scenarios without the dominance of any single one. Fintech companies operate according to the “niche” principle, targeting untapped market segments, services, or technologies in an effort to succeed. Banks, in contrast, tend to be more conservative, a result of the greater regulation governing their activities. However, the development of payment systems in Ukraine demonstrated that fintech companies initially dominated this sector until large banks entered the market and displaced other players. In reality, banks have more resources (both financial and organizational) to introduce certain innovative products or technologies. The successful implementation of these innovations will depend largely on the interplay between the market mechanism of self-regulation and state regulation. Following the principles outlined in the research for state innovation policy will enhance its effectiveness and facilitate the integration of Ukraine’s banking system into European and global financial markets.

Objective:Corporate governance plays an important role in strengthening good governance in banks and realizing a resilient economy.The current research seeks to identify and prioritize factors affecting corporate governance in the banking system with the resistance economy approach.Method:The current research is a mixed study. The theoretical population of the research was experts in corporate governance and resistance economy in the banking system.Sampling was done by judgment and based on the expertise of experts.Interview and questionnaire are the most important data collection tools.In this research, qualitative and quantitative techniques were used together.Findings:At first, 34 factors affecting corporate governance in the form of seven main factors were extracted through theme analysis.The main research factors were: technological and innovative factors, legal and regulatory factors, transparency and reporting factors, structural factors, managerial factors, sustainability factors and educational-consulting factors.In the next step, sub-factors were screened by distribution of expert questionnaires and fuzzy Delphi method.11 factors had a defuzzified number higher than 0.7.The screened factors were evaluated by the Cocoso method.The priority factors were:the extent use of advisors and experts in resistance economy and corporate governance issues, the extent of banks' attention to indicators of resistance economy in sustainability reports, the extent of banks' transparency in the selection, hiring and promotion of managers, the use from data-driven technologies for transparency of contracts and the extent to which banks move towards sustainability.Results:Functional suggestions were developed based on the most important factors. Some of the most important suggestions were: the bank's use of the expert opinions of strong consultants in resistance economy and corporate governance, creating indicators in resistance economy and corporate governance and paying attention to these indicators in bank reports, using fourth generation industry technologies for the integrity of the bank and Strengthening data-driven decisions and banks' attention to sustainability indicators and sustainable financing.

The check has played a significant role as a commercial document in facilitating monetary transactions. Therefore, establishing the most desirable rules and regulations for this document to strengthen its position in the payment system has always captured the attention of lawmakers from the outset. Numerous regulations have been imposed on checks from the past to the present, with the latest being related to the amended law of 2018. According to the aforementioned law, numerous developments have occurred regarding various issues related to checks, with one of the most significant being the changes introduced in the field of legal enforcement guarantees of checks. Some of these changes are aimed at amending past regulations and making modifications to them, while others stem from legislative innovations in the said law. One of the innovations of lawmakers in this area includes the enforcement of cheque payments through judicial execution without judicial review, as well as the establishment of enforcement guarantees related to the banking system. In general, the establishment of such enforcement guarantees with a non-penal approach and the creation of deprivations of banking services for dishonored cheque issuers themselves indicates a shift in the legislator's approach from repressive policies to replacing a legal and banking approach for the recovery of bounced cheques.

The change in stock prices in the capital market is considered a normal thing, but due to the importance that investors attach to their stock returns, the phenomenon of falling stock prices, which leads to a sharp decrease in returns, has been the focus of attention and has led to several studies to identify Factors related to it can be done. In this study, by selecting a sample of active banks in the Tehran Stock Exchange Organization for the years 1393-1400, which data envelopment analysis (DEA) model was also used in collecting part of its data, with panel data regression analysis and with fixed effects, it was tried to investigate the factors of falling stock prices of these banks. The results of this study showed that all three variables of management ability, political relations and financial crises along with other control variables such as size, amount of loss and profit changes have a positive and statistically significant effect and other control variables such as the life of banks, growth rate of facilities and the growth rate of deposits has a statistically significant and negative relationship with the fall in bank stock prices. [ABSTRACT FROM AUTHOR]

The purpose of this research is to present a model of technological entrepreneurship development in the banking system based on the open innovation approach. The current research has a fundamental goal and a practical approach, and the research method is mixed and content analysis. The statistical population of the qualitative section includes professors and experts in the field of technological entrepreneurship, and the sampling method in this research is a snowball sampling method, so the data collection continued until reaching the saturation point, which is 18 people. Also, the statistical population in the quantitative part includes managers and assistants of Tejarat Bank in Tehran province, and the sampling method in this research is simply random. The sample size is 313 people based on Morgan's table. The method and tools of data collection in the qualitative part are semi-structured interviews and in the quantitative part are researcher-made questionnaires. In this research, descriptive statistics and inferential statistics were used to analyze the data and achieve the aforementioned goals. Statistical methods for analysing and analysing the information available in the data set are factor analysis or factor analysis, which was used using the structural equation method (SEM) and Lisrel software. Finally, the research model was measured and fitted. The research results showed that the fit of the research model is significant for t-coefficients above ±1.96 to ±2.58 at the 0.05 level, and t-coefficients above ±2.58 are significant at the 0.01 level. The path coefficients and the explained variance of the research variables and the fit indices obtained for the tested model show that the RMSEA index in the estimated model has an acceptable level with a rate of 0.064 and other fit indices such as CFI, GFI, NFI, and AGFI is equal to 0.97, 0.94, 0.95 and 0.92, respectively, and these characteristics of good fit show that the data of this research fits well with the factor structure of this model. [ABSTRACT FROM AUTHOR]

New risks make bank marketing especially relevant in modern conditions, e.g., COVID-19 restrictions, political issues, economic sanctions, etc. These risks affect the activities of banks, which have to look for new ways to create and promote their services and products. Bank products are quite peculiar: on the one hand, they are difficult to perceive by potential customers; on the other hand, digital technologies provide banks with additional promotion andexpansion opportunities. Global trends in bank marketing include such new technologies as artificial intelligence and digital platforms, new mobile applications, new sales channels and competition with other banks in this sphere, cybersecurity, winning the trust of customers, etc. New risks force banks to fight for customers and expand their market share using bank marketing concepts and tools. Digital marketing includes not only new promotion channels but also such new approaches as brand performance. Banks strive to meet customers halfway and to conquer new age groups by using gamification and financial education. The authors used the 7P marketing model to analyze AO Bank.DOM.RF as an average Russian bank and to recommend new options of bank marketing in practice. The analysis included strengths, weaknesses, opportunities, and threats.

Copyright of Mexican Journal of Economics & Finance / Revista Mexicana de Economia y Finanzas is the property of Instituto Mexicano de Ejecutivos de Finanzas and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The Liquidity risk is one of the most important risks for any banking system, liquidity risk is the bank's inability to cover its financial obligations on maturity without incurring costs. The goal of the researchers is to present the appropriate amount of input and output variables of the liquidity system at the optimal level so that they can observe the ratios affecting the bank's liquidity at the standard level. Considering the importance of the discussion of bank liquidity risk, the main goal of the current research was to investigate the asymmetric effects of fluctuations of macroeconomic variables on the liquidity risk of banks in Iran. In this regard, the financial information of the country's banking system has been collected during the period of 2011-2022. In order to reach the research hypothesis and test them, the autocorrelation method with Nonlinear Autoregressive Distributed Lags (NARDL) has been used. The findings of this study show that the variables of exchange rate, inflation, GDP and liquidity have asymmetric effects on liquidity risk in the country's banking system. [ABSTRACT FROM AUTHOR]

The research objective is defined as the identification and confirmation of empirical relationships between shadow banking activities and economic development in developing and transitional economies to establish a theoretical basis for minimizing potential risks associated with shadow banking. The methodological design is based on a quantitative approach, implemented through correlation-regression analysis and ARIMA forecasting methods. The research findings confirm Hypothesis 1: China's shadow banking is closely interconnected with the country's economic development. However, Hypothesis 2 (the reduction of shadow banking in China contributes to per capita GDP growth) is only supported for specific structural elements of shadow banking that contribute to economic overheating. In contrast, for other structural elements, such as entrusted loans, a strong direct correlation exists, promoting a positive impact of shadow banking on the country's economic development. This highlights the need for a highly balanced state policy to minimize shadow banking risks. The research results can be valuable for professionals in public administration and academic researchers, particularly in terms of shaping future research directions. [ABSTRACT FROM AUTHOR]

In recent years, investors' increasing focus on sustainable investments and the sustainability orientation of companies has led to parallel growth in the market for environmental, social and governance (ESG) performance and ESG rating agencies. However, even though ESG rating agencies have become very influential institutions, the literature has found that ESG performance ratings provided by different agencies often differ from each other. This causes consequences that should be considered, such as complex evaluation of companies' ESG performance and uncertainty in ESG investment decisions. Therefore, it is necessary to identify which determinants influence ESG performance. This study aims to identify the internal determinants of an ESG score using bank-specific balance sheet indicators such as capital and risk ratios. The analysis focuses on the European banking sector from 2018 to 2022. Banks mainly foster the transition to a more inclusive and sustainable economy. Moreover, after the recent financial crises, banks have increased their social responsibility practices, strengthening their credibility, trust and reputation. Generalised estimating equations with standard error robust to heteroscedasticity were used. The results reveal that the factors that most influence the ESG score provided by ESG rating agencies are bank size and liquidity risk exposure. The larger the size of the bank and the lower the exposure to liquidity risk, the higher the ESG score assigned. [ABSTRACT FROM AUTHOR]

In this paper, we attempt to study the effectiveness of various simple machine learning methods in the prediction of bank failures. From a raw dataset of 10,938 US banks during the period of 2000–2020, we find that machine learning approaches do not really outperform the benchmark of conventional statistical method, logistic regression. However, using PCA to retain relevant variance in variables significantly improve the performance of machine learning methods and raise the out-of-sample accuracy of those method to over 70% to over 80%. Of all the machine learning methods used in this paper, the simple KNN seems to be the best model in forecasting bank failure in the United States. [ABSTRACT FROM AUTHOR]

This study examines fifteen major banks’ network connectedness in the Nigerian banking system via its stock returns. The paper studies both the static and dynamic network connectedness of banks built on the generalized forecast error variance decomposition, using daily data from January 4, 2005, to June 28, 2019, of publicly traded banks. This study finds a substantial total connectedness, with a high pairwise connectedness among the system’s large banks. The dynamic evolution of connectedness in the network reveals that banks’ connectivity increases in response to certain economic episodes. The evolution of the global network's topological properties reveals that it is mainly susceptible to shocks threatening its stability. Additionally, the study computes a composite index of systemic importance for the Nigerian banking system by combining several network centrality metrics using the principal component analysis. The outcome shows that large banks are more centralized in the network, and the larger the scale of assets a bank has, the more systemically relevant the bank is in the network. Since systemic risk emanates from connectedness, frequent assessment of the banking system's connectedness and systemic importance will aid policy decisions. The proposed measure of systemic importance can be incorporated into the CBN’s stress testing mechanism for fast-tracking risk potential banks.

Starting from the definition of the word sustainable, which represents the ability to exist constantly, the central objective of the study is to identify the main directions regarding a sustainable development in the Romanian banking sector, as well as how the risk indicators of the banking sector were influenced in the period 2018– 2023 through the lens of a much more environmentally friendly development. The research hypothesis is that most banking institutions have shown their interest in sustainability and have already made impressive progress in implementation by adopting policies for this purpose. The research methodology was based on an analysis of aggregated indicators regarding credit institutions in Romania, a very important indicator being the rate of non-performing loans, the research carried out trying to demonstrate the fact that the presence of sustainability can positively influence the performance indicators of the banking system. At the same time, the new global ESG trend (environmental policies, sustainability and governance) and how it impacted bank financing in Romania was integrated into the paper.

The purpose of this paper is to identify the peculiarities of banks’ business models and assess their risks, which is especially relevant in the context of the war in Ukraine since 2014. The information base is the published statements for each month of 63 Ukrainian banks for the period from 1 January 2018 to 1 January 2024. The number of indicators is chosen in an empirical manner. Business models are investigated using the method of structural-functional groups of banks, which allows estimating large arrays of financial indicators, grouping banks with similar characteristics and drawing conclusions about the main risks. It is convenient to use neural networks, namely Kohonen’s self-organizing maps, to estimate large data sets. The largest group of banks places a significant part of assets in government securities and has an unstable resource base. The share of these banks in the system as of January 1, 2024 is 38% and total assets are 10%. The second group by number of banks is focused on corporate lending with a high share of current resources in liabilities, and includes 21% of banks, whose assets account for 31% of total assets. State-owned banks, PrivatBank and OschadBank, account for 35% of total assets. The business models of these banks are characterized by dependence on retail funds, a high share of investment operations, and high credit and currency risks. Ukraine’s banking system has significantly developed a risk-oriented approach to management, which allowed it to maintain stability in the face of a full-scale war.

The purpose of this article was to investigate the relationship between the diversification of banking resources and expenses with systemic risk in the country's banking system. In this regard, the accepted banks in the Tehran Stock Exchange were evaluated. In order to estimate the systemic risk, the criterion of conditional value at risk was used. Also, in order to estimate the impact of diversification of banking resources and expenses on systemic risk, panel data and quantile regression were used for a selection of banks in the country in the period of 2010-2022. The results obtained from this study indicated that the diversification of banking resources and expenses, because it leads to more dependence between financial institutions, as well as a different combination of financial assets, leads to an increase in systemic risk and contagion. It goes to other financial institutions. In the estimated model, the coefficient of influence of bank diversification index on systemic risk in panel data regression model is equal to 1.45 and in quantile regression it is equal to 1.33. In addition, according to the results of the quantile regression, it can be stated that the effect of diversification index of sources and expenses in different banking groups has been different according to the level of systemic risk. The high level of systemic risk in Iran shows that despite the existence of supervision of some financial institutions, the systemic risk of financial activities is excessive, and this perhaps suggests the need for an effective supervisory authority.

Banks play an important role in the development and prosperity of countries' economies. We cannot carry out daily transactions, whether individual or business, without their presence. The purpose of current study is to investigate whether a relationship exists between insolvency risk and Islamic banks’ profitability in the MENA region. Previous researchers covered this risk individually, however, in this study the risk is taken into consideration including the deposit ratio which are the control variables in this study. For this purpose, data were obtained from 12 MENA countries covering 20 Islamic banks as panel data over ten years period from 2011 till 2020. The fixed effect models were relied upon to analysis data. In the study, the results of two profitability measures (ROA and ROE) were discussed to explain how they are distinct from each other using insolvency risk as independent variable. The results show that insolvency risk has insignificant effect on the profitability of Islamic banks measured by ROA and ROE, regarding control variable, the outcome demonstrate that deposit ratio has insignificant effect on ROA and ROE. [ABSTRACT FROM AUTHOR]

This study aims to explore and evaluate the composition and performance of the loan portfolio of commercial banks in Romania, identifying the main risk factors and development trends. Starting from a historical analysis and reaching the assessment of the impact of some macroeconomic and regulatory factors, the study aims to provide a comprehensive picture of the state of lending in the Romanian context. In this analysis, we will adopt a multidisciplinary methodology, combining statistical analysis, evaluation based on econometric models and qualitative data interpretation, with the aim of providing a comprehensive and detailed perspective. The work will also try to shed light on how lending policies and banking sector regulations have evolved over time and how they influence financial performance and credit risk. [ABSTRACT FROM AUTHOR]

The aim of the study was to determine the impact of increased capital adequacy standards of second-tier banks on their performance. The study is based on second-tier banks of EU member states, as these countries are the first to implement the Basel Committee recommendations, so their experience should be studied and taken into account when building risk-based regulation of second-tier banks of Ukraine and Kazakhstan. The study covers the period of 2009–2022, as the Basel III regulations were adopted after 2008, and they began to operate for the second-tier banks of EU member states in 2013. The study was conducted using econometric modelling with an analysis of the dependence of banking indicators on the capital structure established by Basel III. Functional interrelationships of the dependence of Net Interest Income, Profit, Return on Assets, Return on Equity, Risk Costs to Operating Income were tested. The impact of capital adequacy requirements on the performance of second-tier banks was determined: capital adequacy requirements have a positive impact on net interest income and profit of second-tier banks. The obtained results can be used to substantiate increasing capital adequacy requirements to increase the reliability of the banking system as an element in the system of factors of economic growth of the national economy. [ABSTRACT FROM AUTHOR]

One of the main trends in banking in the modern world is the use of digital technologies. The implementation of digital technologies in banking contributes to the development of an inclusive society, the availability and improvement of the quality of financial services, financial literacy and culture, and management efficiency. Digitization has provided new opportunities for increasing banks' competitiveness and increasing the number of customers and institutions' profits. At the same time, it has caused new challenges and threats related to ensuring the confidentiality of information, mistrust and limited access to digital technologies, insufficient level of digital competencies, cyber-attacks, etc. The purpose of the article is to analyze trends in the financial security of Ukrainian banks in the conditions of war and rapid digitization, as well as to analyze possible cyber threats to the banking system of Ukraine. The article determines Ukraine's place in the Digital Competitiveness Rating for 2017–2022. An analysis of the main indicators of digitalization of Ukrainian banks during 2018–2023 was conducted, which showed a high level of digitalization. To assess the impact of digitalization on the financial security of banks, the dynamics of changes in the main indicators of banking institutions of Ukraine during 2018–2023 were studied. Based on this, the level of financial security of banks was determined using indicators and an integral indicator. Thus, during the analyzed period, the level of financial security of banks was assessed as unsatisfactory. It is emphasized that the digitalization of the banking sector poses a serious threat – a large number of cyber attacks and fraud, which has an extremely negative impact on the level of financial security of banks. Measures and methods of ensuring the cyber security of banks by the NBU in the conditions of a large-scale invasion of Ukraine are considered. The article analyzes the main trends in the financial security of Ukrainian banks in the context of digitalization for the period from 2018 to 2022, which showed an increase in the number of cyber attacks on the banking sector. It has been proven that the war on the territory of Ukraine has a negative effect on the functioning of the banking system. However, thanks to the effective regulatory activities of the National Bank of Ukraine, the banking system quickly adapted to negative changes, and despite military actions, terror and cyber attacks, continues its work. Digitization of the banking system remains an important factor in the development and promotion of the state's economy. It opens up new perspectives for improving customer experience, increasing efficiency and implementing innovations. [ABSTRACT FROM AUTHOR]

Copyright of Human Sciences Journal / Revue des Sciences Humaines is the property of Universite des Freres Mentouri Constantine and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

After two decades of high economic growth and fast development progress, Ethiopia is facing significant macroeconomic challenges such as high inflation, foreign exchange shortage, and slowing growth. At the same time, it is imperative to bring the economy on a green and climate-resilient development path. In this context, the financial sector has an essential role to play. International financial institutions recommend reducing the fiscal deficit to dampen money growth and inflation and giving up exchange rate control. Based on an alternative analysis of inflation, this article argues that money supply restrictions and fiscal austerity may not only prove ineffective in addressing inflation while incurring high economic costs, but also impede a response that comes via productive and green investment to ease the economy’s supply-side constraints and to lower inflation. Rather than fixating on the quantity of money and market exchange rates, central banking should focus on the direction of financial flows to make sure they go into real green investment rather than speculative and inflation-driving investment. This policy blueprint will also reduce balance-of-payments problems and improve both internal and external monetary stability. [ABSTRACT FROM AUTHOR]

Macroprudential regulation of the banking system is a significant instrument for ensuring the financial stability of the state. Unsecured consumer lending is growing at a steadily high rate (in August-October 2022, the average monthly debt growth was 0.9%), and it remains a priority segment for banks because of its high margins. The share of unsecured consumer loans provided to borrowers with debt burden indicator (DBI) of more than 80% amounted to more than 32% in the third quarter of 2022 (28% in the second quarter of 2022). The share of consumer loans for a term of more than 5 years remains at a high level (15% in July-September 2022). The share of MFO loans issued to borrowers with a DBI of more than 80% was 41% in the second quarter of 2022 (38% in the first quarter of 2022). A further increase in the citizens' debt burden in the context of the economy restructuring may create additional macroeconomic risks. Problems of citizens with servicing loans and borrowings can lead to a reduction in demand in the economy, and losses of banks as a result of writing off "bad" loans can lead to a decrease in their ability to lend to the economy. To limit the risks associated with an increase in the citizens' debt burden, since the first quarter of 2023, the Bank of Russia has established direct quantitative restrictions on the issuance of certain types of credits (loans) and the application of increased buffers to risk coefficients if creditors exceed established limits. This article discusses the main approaches to implementation of the macroprudential policy of the Central Bank of the Russian Federation, its goals and instruments, and peculiarities of application in the current conditions. [ABSTRACT FROM AUTHOR]

In the fight against money laundering, the banking system requires collaboration with a diverse set of stakeholders, including regulatory and legislative bodies, banks, international organizations, technology companies, and customers, each with distinct objectives. These stakeholders have been identified through content analysis and interviews with banking industry experts utilizing theoretical saturation sampling. Employing game theory and graph models, interactions among these groups have been analyzed to achieve equilibrium in both the current and future states. Evolutionary path analysis has elucidated pathways to equilibrium, highlighting the role of technology companies in pioneering supervisory innovations and the efforts of international organizations in implementing global standards. The findings indicate that the current equilibrium state does not align with policymakers' ideals. Therefore, reverse game analysis has been employed to explore intervention strategies aimed at adjusting stakeholders' preferences. The ideal state encompasses stringent enforcement of laws by regulatory bodies, enhancement of internal systems by banks, and active cooperation of customers with the imposed limitations. [ABSTRACT FROM AUTHOR]

Financial technology (FinTech) plays a crucial role in banking by offering a range of banking and financial services. This study aims to show how FinTech promotes financial inclusion. The development of an emergency finance mechanism has just occurred. A combination of descriptive and analytical methods was used in this paper. To understand the challenges, opportunities, and ways of overcoming them, the Arab world's experiences have been shared. As stated by the researcher and supported by their suggestions, the goal of financial inclusion is to bring the financially excluded into the formal financial system. The survey found that the general population does not have a strong financial culture, which is one of the obstacles FinTech must overcome. The Arab world, however, saw substantial progress in FinTech; therefore, this was not a barrier. There are a lot of problems with the legality, regulations, and financing of FinTech in Arab nations. The use of the mobile subscriber's index by FinTech effectively contributes to the achievement of financial inclusion, as measured by FinTech and financial inclusion indicators. Most Arab countries still have low scores on the financial inclusion index since they aren't interested in developing FinTech, which slows down the index's progress. [ABSTRACT FROM AUTHOR]

Relevant articles on financial management The scientific article How Banking Systems Support SME Sustainability is a review of the literature within the field of financial management science. The purpose of this paper is to develop a hypothesis regarding the connection between elements, which can be applied to more financial management research. Descriptive qualitative methodology is applied in this work. Previous research that are still pertinent to this one provided the data used in this one. Academic media, credible journals, and academic platforms including Scopus Elsevier journals, Emerald, WoS, DOAJ, EBSCO, SINTA, GARUDA, and digital books (e-books) provided the data for this study. This study's conclusions are that SME sustainability and financial management are influenced by the banking system. [ABSTRACT FROM AUTHOR]

The paper subscribes to the broad strand of literature that examines the interplay between banking activity and climate risk, by particularly focusing on identifying and classifying European Union countries into similar, homogenous groups based on their intrinsic pattern related to climate vulnerability and readiness to cope with the negative effects of natural disasters. By applying an unsupervised learning clustering algorithm on a novel input dataset comprising six proxy indicators for the physical risk associated with climate challenges, we reveal the climate profile of the EU countries. A direct implication of our findings consists of ascertaining which banking systems are more exposed to environmental risks arising from physical sources in the home country they headquarter or in the host countries envisaged for the conduct of transnational financial activity. Results indicate that the least vulnerable EU countries to physical risks, being at the same time best performers in the process of climate risk adaptation, prevention, and management are Denmark, Luxembourg, Germany, Sweden, and Finland. Hence, their banking systems are less exposed to the adverse consequences of the physical risks. In contrast, banks operating in Bulgaria, Croatia, Poland, and Romania are the most exposed to the ripple effects of these risks, due to countries' increased vulnerability to climate risk and to the low degree of performance in implementing climate policies. [ABSTRACT FROM AUTHOR]

Against the backdrop of global challenges and unprecedented events, intellectual capital is seen as the key to opening doors for banks to achieve competitiveness. Inspired by this issue, the paper explores the relationship between intellectual capital and one of the most important functions of banks, namely financial intermediation. The study uses the balanced panel data of 26 Vietnamese commercial banks collected directly from their audited financial statements between 2006 and 2020, and employs various regression analyses such as OLS, Fixed-effect, and the GMM method, in which the VAIC model is utilised as the measure of the intellectual capital of banks. The consistent evidence demonstrates that intellectual capital plays a key role in fostering this function of banks. Also, when dividing VAIC into three components, the empirical result indicates that capital employed efficiency is the most effective resource to enhance financial intermediation compared to human capital efficiency and structure capital efficiency. Furthermore, these findings seem to be clearer in small banks than in large ones, and remain unchanged during both crisis and non-crisis periods. Besides, in the crisis period, the evidence suggests that banks should strengthen their human capital efficiency, and structure capital efficiency should be taken into consideration. Therefore, this study provides a deep insight into the influences of intellectual capital on banking operations in emerging countries, where the development and sustainability of banks could ensure economic growth. [ABSTRACT FROM AUTHOR]

The article establishes that the effective management of banking risks should be based on the relevant fundamental research on the formation of an effective mechanism for regulating financial relations in the banking sector. The purpose of the study was to substantiate the theoretical and methodological foundations of effective banking risk management and develop practical recommendations for improving its effectiveness in the context of digitalization. The study utilized various scientific methods, including financial stability indicator analysis, economic standards evaluation, financial condition coefficient calculation, and testing the CAMELS system within the digitalization context. Bank risk management is crucial for sustainable development. Studying risk management enhances the Russian banking sector's financial stability. However, risk management in stable conditions differs significantly from digitalization. In the digital era, objectives, resource availability, support, and decision-making time change. The goal becomes avoiding major performance deviations caused by risks in active and passive operations and bank activities. [ABSTRACT FROM AUTHOR]

The aim of the study was to determine the impact of increased capital adequacy standards of second-tier banks on their performance. The study is based on second-tier banks of EU member states, as these countries are the first to implement the Basel Committee recommendations, so their experience should be studied and taken into account when building risk-based regulation of second-tier banks of Ukraine and Kazakhstan. The study covers the period of 2009–2022, as the Basel III regulations were adopted after 2008, and they began to operate for the second-tier banks of EU member states in 2013. The study was conducted using econometric modelling with an analysis of the dependence of banking indicators on the capital structure established by Basel III. Functional interrelationships of the dependence of Net Interest Income, Profit, Return on Assets, Return on Equity, Risk Costs to Operating Income were tested. The impact of capital adequacy requirements on the performance of second-tier banks was determined: capital adequacy requirements have a positive impact on net interest income and profit of second-tier banks. The obtained results can be used to substantiate increasing capital adequacy requirements to increase the reliability of the banking system as an element in the system of factors of economic growth of the national economy.

This paper investigates the interaction between decentralized financial services and the traditional banking system by building VAR models, conducting Granger causality tests, building impulse response functions, and performing variance analysis. To implement the model, banking indicators of the USA, India, and Great Britain were selected: the volume of commercial and industrial loans, interest rate, consumer price index, total liabilities and capital of banks, aggregate deposits, federal funds rate (for the USA), and repo rate (for India). The study examined central bank data of the specified countries from July 2018 to January 2024 with the TVL indicator, which measures the sum of all assets locked in DeFi protocols. The results of the impulse response function (IRF) for countries demonstrate different interactions between TVL and bank indicators. The US response to TVL shocks demonstrates a stimulative monetary policy, with significant Fed rate reductions and increased commercial lending to boost economic activity. In contrast, India’s monetary stimulus, marked by declining repo rates and growth in banking sector liabilities and deposits, aims to enhance economic resilience. The UK, however, adopts a conservative monetary approach, with sharp bank rate increases and mixed lending and deposit responses, prioritizing financial stability. Analysis across these nations highlights different impacts of financial indicators on TVL. In the US, the evolving relationship between TVL and bank indicators reflects the financial system’s complexity. India’s sensitivity to monetary policy, credit conditions, and inflation significantly influences TVL. In the UK, central bank decisions, particularly the bank rate, play a crucial role in financial market dynamics. AcknowledgmentThe authors appreciate the assistance in the preparation of the article provided by the University of Debrecen Program for Scientific Publication and the János Bolyai Research Scholarship of the Hungarian Academy of Sciences.

In the modern world, mortgage plays an important role in the life of the citizens of the country due to its important role in providing their housing needs. Thus, it is important to find the most effective model of mortgage lending for the country to maximize the living standards of its citizens. The aim of the work is to choose the most effective model of mortgage lending that can be used in the country and bring the greatest benefit to it. The main methods used in the research were analysis, deduction, induction, and abstraction. The paper examined various aspects of mortgage lending, focusing on the different payment models and their implications for borrowers. Two types of mortgage loans were considered: with annuity and differentiated payments, their main differences in terms of payment rates were described, and mathematical formulae for their calculation were specified. To illustrate the impact on the borrower of each of them, a theoretical example was provided, on the basis of which the differences between the two systems were described. The paper also describes three models for organizing mortgage lending systems: a closed (stand-alone) mortgage system, a truncated open model and an extended open model. The suitability of these models for the development of the Kyrgyz mortgage market was assessed based on their characteristics and features, positive and negative components. The work brings new knowledge in the context of studying the peculiarities of mortgage lending as a whole, as well as allows finding opportunities for improving its functioning in the Kyrgyz Republic

Relevance. The banking system is a key structure in a market economy. The definition of a «banking system» affects all aspects of its functioning: organizational, legal, and institutional. The banking system can function effectively only if a number of principles are fulfilled that justify the organization of effective monetary circulation that meets the needs of the economy and its expanded reproduction. The national banking system exists in the economic environment of the State in which it operates. Therefore, the study of the banking system of the Russian Federation involves considering it not separately, but together with a set of factors influencing it. Aim. To substantiate the factors of developing the banking system in the Russian Federation through segmentation at the level of the macroenvironment (external indirect impact) and microenvironment (internal direct impact). Methods. General scientific methods of cognition, including comparativism, segmentation, generalization, synthesis, detailing. Tasks. In order to achieve this aim, the segmentation of the factors for developing the banking system in the Russian Federation was carried out, indicating the specifics of the impact. The authors have considered the eterministic analysis models that can be applied to quantify the degree of impact. Results. The factors influencing the banking system can be conditionally divided into internal and external ones. Internal factors have a direct impact on the banking sector development, external factors may indirectly influence it, but this in no way reduces the degree of possible impact. The factors were grouped according to the following criteria: economic, social, man-made, managerial, professional, political, and competitive. It is quite difficult to assess the influence of one or another factor, first of all, for the reason that all the analyzed indicators must be expressed quantitatively. There is also a question about the degree of influence of one or another factor, which should be expressed in terms of coefficients, that is, in any case, there may be a subjectivity of assessment in the calculation, which makes the calculations ambiguous and possibly erroneous. It is advisable to assess the impact of the studied factors using deterministic factor models that will generate a model for the banking system development and formulate strategies for the development of the banking sector and the country economy. Conclusions. The necessity of structuring the factors of banking system development was justified in order to further evaluate them through a deterministic factor analysis in order to bring the results obtained to numerical values.

The article analyzes the impact of cyclical financial risks on the economy of Ukraine using the cyclical risk index. The index is designed to monitor the current level of cyclical risks, as well as possible accumulation in the future. Timely identification of risks with the help of an innovative tool gives the regulator enough time to react and implement anti-crisis measures. In addition, the methodology of index evaluation allows you to visualize not only the index, but also its components, which facilitates the interpretation of the used tool. The dynamics of cyclical risks during economic and financial crises is considered and the importance of their analysis for macroprudential policy is noted. The assessment of the cyclical risk index was carried out using the Hodrick – Prescott filter using indicators reflecting new lending, lending volumes, as well as the cost of lending. The indicators taken into account for the assessment of the index are used separately for the sector of households and non-financial corporations. The results of the analysis showed that after the crisis of 2008–2009, the index remained elevated until the next crisis in 2014, with the gap between non-financial corporations lending to GDP remaining positive. However, before the crisis of 2014–2016, there has been an expansion of cyclical financial risks. During 2017–2023, Ukraine was facing two crises: an economic one caused by the COVID-19 pandemic and a political one related to the russian invasion. The Financial Cycle Index did not predict the accumulation of cyclical systemic risks before these crises, but indicated an increase in risks since 2019. After the russian invasion Ukrainian economy suffered a sharp downturn, but the banking system withstood the test, providing liquidity and continuing lending operations. In general, the results indicate the need for an individual approach to the analysis and management of cyclical financial risks, taking into account the specifics of each country, its context, and the particularities of the financial sector.