Asian Financial System: Development and Challenges

The research of innovation strategy of urban crisis management mechanism is benefit for the government to make timely, accurate and scientific decision-making when occurs public crisis to enhance the effectiveness of crisis management.Specific innovation strategies include: improving evaluation mechanism after occurring public crisis, building multivariate coordination joint mechanism of crisis management, perfecting the principles of government's public crisis management mechanism, strengthening citizen participation mechanism of public crisis management, improving information dissemination mechanism of public crisis management and improving decision-making mechanism of public crisis management and so on.Results of this study enrich and supplement theories and methods of existing urban crisis management in theory and can provide a scientific basis for government's decision-making on crisis management in practice.

Purpose: The purpose of the present study is to analyze the effect of financial inclusion on sustainable economic growth for Indonesian banking companies, and to investigate the effect of financial inclusion on sustainable economic growth through financial system stability. Design/Methodology/Approach: This research is a quantitative study using secondary data taken from annual financial statements of banking companies listed on the Indonesia Stock Exchange (BEI) over the period 2010-2017. Findings: The results show that (a) the financial inclusion does not affect sustainable economic growth in Indonesian banking companies, and (b) the financial system stability mediates the effect of financial inclusion on sustainable economic growth in Indonesian banking companies. Practical Implications: This study provides deeper insight into the factors that drive financial inclusion and an increase in market share and financial performance of banks. With conditions of inclusion that are still low in Indonesia while the number of banks is increasing, it is necessary to have strong financial system stability. By understanding the matrix in financial inclusion, managers are well-positioned to understand the strategies needed to promote financial inclusion so that market share increases. Likewise, the results of the present study are probable to be an input for other stakeholders for their consideration in decision making. Originality/Value: Empirical research that explores the effects of financial inclusion, and sustainable economic growth in Indonesia is still very limited. According to our knowledge, no one has examined the use of financial system stability as mediation as it is used in this study.

Theoretical background : In today’s circumstances of volatility and uncertainty in the activities of industrial enterprises, there are always risks of emerging crisis phenomena. In such a situation, top management should realize that only a well-established system of crisis management will enable the timely detection of “weaknesses” and prevent the threat of bankruptcy of enterprises in the future. The establishment of this system can be ensured through the proper organizational support of the mechanism of crisis management, which, besides traditional tools, should take into account non-traditional, namely reflexive management tools. Ultimately, taking into account psychological factors of behaviour as well as rational ones is an important factor in the adoption of quality managerial decisions. The implementation of reflexive methods of influence on such subjects enables them to be inclined towards actions that are benefitial to the enterprise and contribute to its improvement, with a small financial expense, in order to constructively resolve conflict situations – the factors of occurrence of crisis phenomena. Purpose of the article : The purpose of the article is to substantiate the theoretical and applied principles of the organizational provision of the mechanism of crisis management regarding the activity of industrial enterprises, on the basis of the reflexive approach. Research methods : In the process of solving the tasks, general scientifi and special methods of research were used. The dialectical method allowed for the exploration of the components of the mechanism of crisis management of the activities of industrial enterprises and the stages of its organizational support in terms of their interconnection and interdependence. Analysis and synthesis were used to assess the activities of industrial enterprises with foreign investments in Ukraine and define the tasks of organizational support for their crisis management. Grouping, comparison and scientific synthesis were used in the development of recommendations for the use of a modern low-cost reflxive approach in the interaction of personnel of industrial enterprises with key stakeholders. Main findings : The development of organizational support for the mechanism of crisis management of industrial enterprises should include a sequence of stages: the analysis of the organizational structure of the enterprise; the analysis of job descriptions of personnel related to the implementation of the functions of crisis management of the enterprise; the allocation of new functions and the justifiation of the need to create additional structural units, as well as the regulation of their interaction; and the management of personnel resistance by innovation. The use of the reflexive approach in implementing the mechanism of crisis management regarding the activity of the industrial enterprise is a low-cost way of reforming the existing system in terms of its functioning and the impact of the company’s staff on stakeholders, in order to incline them to make the decisions necessary for the company to achieve the goals set out in the crisis programme.

This study constructs an Aggregate Financial Stability Index (AFSI) for Bangladesh to evaluate the systemic health and resilience of the country’s financial system during the period 2016–2024. The index incorporates 19 macro-financial indicators across four key sectors: Real Sector, Financial and Monetary Sector, Fiscal Sector, and External Sector. Using a normalized scoring approach and equal weighting scheme, sub-indices were aggregated to form a comprehensive measure of financial stability. The findings indicate that while the Real and Fiscal sectors demonstrated modest improvements in FY2024, overall financial stability deteriorated, largely due to poor performance in the Financial and Monetary Sector and continued weakness in the External Sector. Key stress indicators include rising non-performing loans, declining capital adequacy ratios, weak capital market performance, growing external debt, and shrinking foreign exchange reserves. The study highlights the interconnectedness of macro-financial sectors and the urgent need for structural reforms, stronger regulatory oversight, and enhanced macroprudential policy coordination. The AFSI framework developed in this paper offers an early warning tool for policymakers and contributes to the literature on financial stability measurement in emerging economies.© The Author(s) 2025. Published by RITHA Publishing. This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited maintaining attribution to the author(s) and the title of the work, journal citation and URL DOI.Article’s history: Received 4th of August, 2025; Revised 17th of August, 2025; Accepted for publication 29th of August, 2025; Available online: 1st of September, 2025. Published as article in Volume I, Issue 1(1), 2025.

Research background:Although macroprudential instruments increase financial stability, it is necessary to test how they affect the overall economic recovery after a global financial crisis. In the post-crisis period, the real sector needed a strong injection of capital in order to be able to start recovery and to encourage economic growth. At the same time, most of the countries introduced strict regulatory measures that strengthen bank capital and the liquidity base. From the standpoint of the financial sector stability, these measures contributed to the overall financial stability, but at the same time, these measures hold up the bank credit activity.Purpose of the article:This paper analyses the impact of macroprudential instruments on the bank credit activity toward the non-financial sector. The analysis is made by using the Granger Causality Test and the ARLDS Bounds Test.Methods:The research was conducted for the period of 2000 – 2019, based on the data of the Croatian National Bank and the Croatian Bureau of Statistics using logarithmic quarterly data. The analysis is made by using the Granger Causality Test and the ARLDS Bounds Test.Findings & Value added:The results confirm the thesis that additional macroprudential measures decrease the bank credit activity toward the real sector, which slows down the real sector recovery and extends the downturn in the business cycle. On the other hand, the macroprudential measures increase the financial stability of the whole economy, which is positive for future investments and recovery of the real sector.

The discussion examined the relationship between local financial management, public policy, policy implementation, and their impact on local development. The focus of this discussion is on four main themes, namely financial inclusion, monetary policy, local financial strategies, and the role of the Small and Medium Enterprise (SME) sector. Through policy implementation analysis and a narrative approach, managerial and theoretical implications of each theme have been identified. The managerial implications highlight the importance of integrating public policies, considering monetary policy, developing human resources and infrastructure, adopting national industrial policies, and supporting the development of the SME sector in regional financial management strategies. Meanwhile, the theoretical implications emphasize the importance of understanding public policy, policy implementation, the role of the SME sector, and external factors in achieving the objectives of regional financial management and local development. This discussion provides important insights for practitioners and researchers in designing better public policies and optimizing regional financial management.

This study investigates the relationship between financial inclusion and financial stability in Zimbabwe over the period 2000–2020, with an emphasis on broader implications for economic development and livelihoods. The objective is to assess how efforts to enhance financial inclusion influence the stability of the banking system, which is critical for sustainable economic growth and improving livelihoods, particularly in marginalised communities. Using the Fully Modified Ordinary Least Squares (FMOLS) cointegration technique, the study analysed time series data on financial inclusion, financial stability, domestic credit, gross domestic product (GDP), and the size of the financial sector. The findings indicate a significant negative relationship between financial inclusion and financial stability, suggesting that increased financial inclusion adversely impacts bank system stability. Similarly, domestic credit exhibited a negative and significant relationship with financial stability. However, GDP and financial sector size positively and significantly contributed to financial stability, reinforcing their role in supporting inclusive economic development. These results underscore the complexities of balancing financial inclusion and stability within Zimbabwe’s financial sector. The study concludes that while expanding financial inclusion is essential for promoting access to financial services and advancing economic development and livelihoods, it poses risks to financial stability if not accompanied by appropriate risk management and regulatory measures. Factors such as relaxed lending standards, insufficient oversight of microfinance institutions, and reputational risks associated with outsourcing credit functions can exacerbate these challenges. The study concludes that expanding financial inclusion without robust regulatory oversight and risk management poses significant risks to banking stability and recommends a balanced policy approach that integrates technological innovation with stronger institutional frameworks to foster sustainable and inclusive growth.

Exploring the dynamics of employee creativity in the small and medium enterprise (SME) sector is crucial for contemporary organizational studies, especially in the context of the Chinese culture. In this study we investigated the complex relationships among inclusive leadership, employees' happiness, personal values like altruism, and creativity within China's SMEs. The objective was to understand how inclusive leadership combined with happiness and altruism of the employees impact creative outcomes. Data were collected from 408 employees and leaders in the SME sector using a self-administered survey. We applied structural equation modeling using SMARTPLS software for analysis. We found that inclusive leadership significantly enhanced employee creativity, and this relationship was mediated by employee happiness. Employees' altruism was a key moderator, intensifying the effects of inclusive leadership on employee creativity. Theoretically, this research fills gaps in understanding leadership, employees' happiness, personal values, and creativity in an SME context. Practically, our findings emphasize the importance of nurturing inclusive leadership and focusing on employee well-being in guiding SMEs toward innovation and sustainable growth amidst evolving challenges.

The research aimed to assess the actual and sustainable growth rates of Al-Thiqa and Al-Mutahida Insurance Companies, while also conducting a comparative analysis of their financial stability to assess their ability to grow without the need for external financing. The study period spans from 2012 to 2016. To accomplish the set objectives, a descriptive-analytical approach was utilized, employing the Ros model for assessing actual and sustainable growth, and the Z-Score model for evaluating financial stability. The outcomes of the study indicated that both companies fell short of the necessary actual growth rate, with Al-Thiqa Insurance Company meeting the sustainable growth rate requirement, unlike Al-Mutahida Insurance Company. Furthermore, disparities in actual and sustainable growth rates between the two companies were identified. In terms of financial stability, it was observed that there was a decline for Al-Thiqa Insurance Company and a reduction to zero for Al-Mutahida Insurance Company. The examination furthermore assessed the financial standing of both companies are focused on increasing their market presence and ensuring their financial stability., thereby aiding in the development of a strategy to enhance the efficiency enhancing Libyan insurance entities to contribute positively to the advancement of the local economy. Keywords: Sustainable growth- actual growth- financial stability- Financial fragility.

Various efforts have been made by the government in eradicating and preventing corruption. However, it does not significantly reduce the number of corruption cases every year. Reforms in regional financial management were found to be unable to increase accountability in regional financial management

Research Objectives - This study examines the influence of financial targets and financial stability on financial statement fraud, as well as the role of financial distress in strengthening or weakening the relationship between financial pressure and fraudulent financial statement practices. Research Methods - This study uses a quantitative approach with secondary data in the form of financial reports from property and real estate companies listed on the Indonesia Stock Exchange, with a total of 180 observations obtained through purposive sampling. The data analysis technique uses panel data regression with E-Views 12 software. Research Findings - The results of this study indicate that financial targets and financial stability have a significant effect on financial statement fraud. However, financial distress is not proven to have a direct effect or mediate the relationship between financial targets and financial stability on financial statement fraud. This finding indicates that financial pressure and stability are more dominant influences on fraud than the company's financial distress. Theoretical and Policy Implications - The results of this study strengthen the fraud triangle theory, particularly regarding the dimensions of pressure originating from targets and the company's financial stability. Practically, these findings can provide a basis for management and regulators to strengthen oversight of financial target setting and maintain financial stability to minimize the risk of financial statement fraud. Research Novelty - Testing the role of financial distress as an intervening variable in the relationship between financial targets, financial stability, and financial statement fraud in the post-pandemic property and real estate sector.

Introduction. The world economy has been experiencing a systemic financial crisis since 2008, as a result of which highly developed countries have been in a state of depression and teetering on the brink of deflation. This crisis coincided in 2020 with the global crisis of a sharp decline in real GDP caused by the COVID-19 pandemic. The conditions for a possible entry of the country's economy into stable growth are ambiguous. Problem Statement. Highly developed countries have taken steps to regulate the sharp decline in real GDP due to the pandemic, leaving financial markets overflowing with cheap liquidity. This threatens to increase inflation, the collapse of stock markets and the continuation of the global financial crisis if cheap liquidity does not become an investment resource for sustainable financing. Purpose. Study of the interaction of the real and financial sectors in the country's economy through changes in the amount of cash in circulation and with the help of the state's investment policy on sustainable financing and determining the consequences of the collapse of the value of financial securities. Materials and Methods. The data of the International Finance Corporation was used, according to which, in particular, in emerging markets, there are opportunities for climate investment worth about 23 trillion dollars. US by 2030, while in Ukraine they are estimated at 73 billion dollars. USA. Results. A study of the interaction of real and financial sectors in the economy through the state's investment policy for sustainable financing and identified the consequences of the collapse of the value of financial securities. It has been determined that an increase in cash from the financial sector proportionally reduces inflation and a decrease increases it. Therefore, when targeting inflation within specified limits, the banking system must change the amount of cash in the economy in proportion to its change in the financial sector. With a constant amount of cash in the economy, inflation decreases proportionally if the cash of the financial sector and the currency balance increase. Conclusions. Government regulation of investment in the real sector and investment by the financial sector in stable financing may be another impetus for economic growth and overcoming the systemic financial crisis.

In the last three decades, the main objectives of Indian policy makers have been often articulated as promoting sustainable and equitable growth with monetary and financial stability, the last being particularly emphasized after the global crisis. We have already had occasion to examine (in previous chapters) the crucial role of monetary stability and financial stability in sustaining the trend rate of growth and enhancing social welfare in any society. Thus, it is of paramount importance to have a policy framework in place which will safeguard monetary and financial stability. In the present chapter, we try to appraise what has been done and what is proposed to be done in this regard in the Indian context.

Information communication is a key factor of governmental crisis management. The traditional pyramid type of information communication mechanism of governmental crisis management can no longer meet the need of our current society. This paper analyses the information flows within and outside the government, and proposes a new information communication mechanism of governmental crisis management based on e-government, and some examples are enumerated to illustrate its application.

This study meticulously explores the intricate dynamics of Cameroon's trade policies, aiming to elucidate their current state, identify significant challenges, and propose strategic enhancements for more robust economic integration and growth. Against the backdrop of a globalized economy, Cameroon's trade policies play a crucial role in shaping its economic landscape. The research employed qualitative methodologies, including an extensive literature review of works published by various authors on the topic, to garner a comprehensive understanding of the policy environment. The findings reveal critical barriers such as infrastructural deficits, regulatory inefficiencies, and policy implementation challenges that impede effective trade operations. These obstacles not only hinder trade efficiency but also limit Cameroon's potential to capitalize on global market opportunities. The study concludes with several strategic recommendations: prioritizing infrastructure investment to alleviate logistical bottlenecks, streamlining regulatory frameworks to enhance transparency and reduce bureaucratic hurdles, and improving policy-making processes. These measures are designed to fortify Cameroon's trade policy framework, thereby enhancing its economic prospects and global trade integration. The research underscores the importance of a holistic, strategic approach to trade policy development, advocating for sustained, coordinated efforts among all relevant stakeholders. By addressing the identified challenges and leveraging highlighted opportunities, Cameroon can significantly improve its trade policy outcomes, fostering sustainable economic growth. Keywords: Trade Policy, Cameroon, Economic Integration, Regulatory Framework, Stakeholder Engagement, Infrastructure Investment.