Banking Research Articles

Household Waste Management with Waste Bank in Stunting Area at Puskesmas Ambacang, Padang City

Household waste management is an important environmental and public health issue, especially in areas with high stunting rates, where overall community health can be compromised due to poor sanitation practices. This study explores the implementation of a waste bank system in stunting-prone areas in the working area of the Ambacang community health centre in Padang city. Waste banks function as a community-based approach to managing household waste by encouraging residents to separate and store recyclable materials in exchange for financial benefits. It also aims not only to reduce environmental pollution but also to empower local residents economically and improve public health. This service examines the effectiveness of waste banks in changing household waste management behaviour, their contribution to reducing health risks associated with waste mismanagement and their potential to alleviate stunting through improved environmental sanitation. The waste bank model encourages greater community involvement in waste segregation and recycling thus contributing to a cleaner living environment.

Authority of the National Sharia Council (DSN) and the Financial Services Authority (OJK) in the Regulation of Shakira Banks After the Birth of Law no.21 of 2011 Linked to Sharia Principles According to Sharia Banking Law

Objective: After the enactment of Law No. 21 of 2011 concerning the Financial Services Authority (OJK), the supervision and regulation of Indonesia's financial sector, including Islamic banking, was transferred to the OJK. Nevertheless, Islamic banking operations must adhere to sharia principles, supervised by the National Sharia Council (DSN) of the Indonesian Ulema Council. This study explores the division of authority between the OJK and DSN in regulating Islamic banks, focusing on their conformity with sharia principles as outlined in Law No. 21 of 2008 concerning Sharia Banking. Theoretical Framework: Theoretically, this research is grounded in the duality of regulatory oversight—secular and religious—emphasizing the coexistence of financial system integrity and sharia compliance. Employing a juridical-normative method, the study analyzes statutory laws, DSN fatwas, and their application within the regulatory framework. Method: This study uses a juridical-normative approach to analyze the relationship between the Financial Services Authority (OJK) and the National Sharia Council (DSN) in the regulation and supervision of Islamic banking. This approach focuses on normative studies of relevant laws and regulations, such as Law No. 21 of 2011 concerning the Financial Services Authority, Law No. 21 of 2008 concerning Sharia Banking, as well as fatwas issued by DSN. Results and Discussion: The Result and disccusion reveal that while the OJK holds comprehensive regulatory and supervisory authority, DSN retains pivotal control as the interpreter and guarantor of sharia compliance. This dual authority reflects a nuanced balance between maintaining financial system stability and ensuring adherence to Islamic legal principles. Research Implications: The implications of this research underscore the importance of clear, collaborative mechanisms between the OJK and DSN to avoid regulatory overlaps or inconsistencies. Furthermore, this study emphasizes the unique dual-regulatory model as a hallmark of Indonesia's Islamic banking system, contributing to the discourse on harmonizing secular and religious financial governance. Originality/Value: T The originality of this research lies in its juridical-normative approach to analyzing the interplay between OJK's supervisory role and DSN's authority, offering insights into optimizing regulatory practices in Islamic banking.

ОЦІНКА ЕФЕКТИВНОСТІ ДЕПОЗИТНОЇ ПОЛІТИКИ БАНКІВ В УМОВАХ ВОЄННОГО СТАНУ

Introduction. Assessing the effectiveness of the deposit policy of Ukrainian banks in wartime is a strategically important task for ensuring the banking system's stability, maintaining public confidence, and developing the economy as a whole. Purpose: substantiation of methodical approaches to assessing the deposit policy of commercial banks of Ukraine in martial law conditions. Methods. In the research process, the following general scientific methods of knowledge were used, such as: generalization and comparison (to compare the existing methods of assessing the effectiveness of the deposit policy of banks and to determine the most optimal one in modern conditions), analysis (to study changes in the structure of the deposit portfolio of Ukrainian banks and the directions of investing the funds involved in conditions of martial law) statistical method (when calculating indicators of the efficiency of the deposit policy of the Oschadbank). Results. The article summarizes methodical approaches to assessing the deposit policy of commercial banks of Ukraine in martial law conditions. The advantages and disadvantages of existing methods are analyzed. The expediency of using the evaluation methodology, which takes into account the structure of the involved resources and the directions of using deposit resources, is justified. The effectiveness of the deposit policy of the state bank Oschadbank in 2021-2023 is assessed. Conclusions. From the point of view of the profitability of using borrowed funds, Oschadbank's deposit policy is effective, however, the need for its improvement is indicated by: a decrease in the proportion of term resources, the allocation of the majority of borrowed funds to the government bonds and deposit certificates, which negatively affect the activation of lending to the economy.

A systematic review of AI-enhanced techniques in credit card fraud detection

The rapid increase of fraud attacks on banking systems, financial institutions, and even credit card holders demonstrate the high demand for enhanced fraud detection (FD) systems for these attacks. This paper provides a systematic review of enhanced techniques using Artificial Intelligence (AI), machine learning (ML), deep learning (DL), and meta-heuristic optimization (MHO) algorithms for credit card fraud detection (CCFD). Carefully selected recent research papers have been investigated to examine the effectiveness of these AI-integrated approaches in recognizing a wide range of fraud attacks. These AI techniques were evaluated and compared to discover the advantages and disadvantages of each one, leading to the exploration of existing limitations of ML or DL-enhanced models. Discovering the limitation is crucial for future work and research to increase the effectiveness and robustness of various AI models. The key finding from this study demonstrates the need for continuous development of AI models that could be alert to the latest fraudulent activities.

Evolution of banking systems: A comprehensive historical analysis

This paper provides a comprehensive historical analysis of the evolution of banking systems, tracing their origins from ancient Greece and Rome through medieval Europe, the Renaissance, and the emergence of modern banking institutions. It explores the foundational practices of ancient Greek "trapezitai" and Roman "argentarii," which laid the groundwork for more advanced systems that flourished in the Italian city-states during the Middle Ages and Renaissance. The development of commercial and central banking systems in early modern Europe, including the establishment of the Bank of Amsterdam and the Bank of England, is examined in detail. The study further highlights the role of colonial powers in shaping banking structures across the globe and discusses significant innovations of the 19th and 20th centuries, such as fractional reserves and the rise of investment banking. Emphasis is placed on the transformational impact of globalization, deregulation, and technological advancements in the modern banking era. Additionally, the paper delves into contemporary challenges, including cybersecurity, data privacy, and the integration of artificial intelligence, offering insights into the future trajectory of banking institutions. By bridging historical developments with modern trends, this analysis underscores the enduring significance of banking as a dynamic and essential component of economic systems, providing valuable lessons for understanding its future evolution.

Assessment of Stability of the Banking System with Dl-Model Rf and the Hurwitz Matrix in the Conditions of Turbulent Economy

The article considers theoretical issues of assessing the sustainability of the banking system using the DL-model "Random Forest" and the "Hurwitz" matrix in a turbulent economy. Noting the main aspects that determine the relevance of the study, two points should be noted: firstly, that in modern conditions artificial intelligence systems are very often used in scientific research, and secondly, new approaches that allow filling the existing gaps in theoretical issues regarding the aspects of assessing the financial stability of the banking system in a turbulent economy remain in demand. The scientific novelty lies in the fact that the study puts forward and proves the hypothesis that with the help of the artifi cial intelligence system DL-model "Random Forest" it is possible to obtain an accurate forecast of the net profi t of the banking system, which can be used to assess the sustainability of the banking system according to the Hurwitz criterion. The practical significance lies in the fact that the results obtained in the course of the study can be recommended for implementation in practice to provide support for management decisions in developing a development strategy for the Russian banking system. The accuracy of the obtained DL model forecast is characterized by the mean error of the forecast (MAE). The best decision tree is used in the generated DL model. The Random Forest DL model was generated using optimal hyperparameter settings.

The money market in transition: from city-based market arbitrage to a central banking system in nineteenth-century Spain

This research supports the singularity of the Spanish case. The lessons we can learn are a product of the short transition in the mid 1880s from a city-based monetary system (supported by private actors) to a central banking system in the absence of a developed banking system with a nationwide scope, unlike what occurred in the rest of Western Europe. Introducing market arbitrage, we provide novel evidence – using new data – of how price formation in city-based money markets was driven by more than one price. Furthermore, factors such as market conditions, political circumstances and the asymmetrical development of market potential in the Spanish economic geography also played an important role. We also show new empirical support that transaction cost reduction was not associated with improving efficiency during the 1875–85 period when city-based money markets were still operating. The inland payment system was struggling even before its takeover by the Bank of Spain.

MIGRATING BANKING SYSTEMS TO AZURE: CHALLENGES AND SOLUTIONS

This paper explores the intricacies of migrating banking systems to Microsoft Azure. It highlights challenges such as compliance, data security, and operational risks, while proposing solutions to address these issues. With real- world examples, this paper delves into the design and implementation of resilient, scalable, and fault-tolerant architectures tailored for banking systems. It emphasizes security considerations, operational excellence, and the significant impact of cloud-native features in modernizing legacy systems.

Microservices in Banking: Challenges and Best Practices in Scaling Core Applications

The banking industry is undergoing a rapid digital transformation, with microservices architecture at the forefront of scalable, resilient, and flexible application development. This paper explores the critical challenges and best practices in implementing microservices for banking systems, focusing on the scalability of core applications. Through in-depth analysis, detailed metrics, and real-world examples from major banks such as JPMorgan Chase [3] and HSBC [4], we examine the unique demands of the banking sector, propose effective solutions, and outline an optimized architecture. Furthermore, we provide empirical evidence to demonstrate the benefits of microservices, highlighting their role in driving operational efficiency, enhancing performance, and improving customer satisfaction.

Monetary Easing, Leveraged Payouts, and Lack of Investment

We study a model in which a low monetary policy rate lowers the cost of corporate debt, potentially spurring productive investment; low interest rates, however, also induce firms to lever up so as to increase payouts to equity. Whereas such leveraged payouts privately benefit shareholders, leverage comes at the social cost of distorting their incentives, thereby lowering productivity and discouraging investment. If leverage is unregulated (for example, because of the presence of a shadow banking system), then the optimal monetary policy seeks to contain such socially costly leveraged payouts by stimulating investment in response to adverse shocks only up to a level below the first best. The optimal monetary policy may even consist of leaning against the wind, that is, not stimulating the economy at all, in order to fully contain leveraged payouts and maintain productive efficiency. This paper was accepted by Tomasz Piskorski, finance. Supplemental Material: The online appendix and data files are available at https://doi.org/10.1287/mnsc.2022.01440 .

Virtual Banker at Your Fingertips Using Chatbot System

Abstract- Technology's quick development has revolutionized the banking industry and opened the door for creative solutions like chatbots driven by artificial intelligence. The creation and deployment of a virtual banking system that uses chatbot technology to increase security, simplify processes, and improve customer experience is the main emphasis of this study. The study investigates how to build intelligent and responsive chatbots using machine learning, natural language processing (NLP), and interaction models. Personalized financial services, round-the-clock accessibility, cutting down on time spent on repetitive tasks, and upholding strict security and compliance guidelines are some of the major goals. Increased client pleasure, better operational effectiveness, and greater confidence in banking services are anticipated results. The suggested solution guarantees a safe and moral method of virtual banking by taking privacy issues and legal requirements into account. According to the paper's conclusion, chatbot technology is a game-changer for contemporary banking, allowing organizations to satisfy the needs of tech-savvy clients while encouraging contentment and loyalty. To ensure continued innovation and growth, future directions include investigating trends in personalized banking experiences and combining chatbots with upcoming technology. Keywords-  Virtual Banking Chatbot Technology Natural Language Processing (NLP) Artificial Intelligence (AI)

The Impact of Financial Innovations on the Amplification of Financial Crises

A financial crisis arises when the value of financial assets or markets rapidly declines, often leading to panic, liquidity shortages, and the collapse of the banking systems. In modern financial systems, financial innovations such as mortgage-backed securities (MBS), credit default swaps (CDS), and high-frequency trading have emerged as key drivers of both market efficiency and systemic instability. These innovations can amplify financial crises by increasing leverage, introducing complexity, and precipitating abrupt market shocks. This paper examines how specific financial innovations, particularly derivatives like MBS and CDS, contributed to the amplification of the 2007-2008 financial crisis. The study uses a case study approach to analyze the crisis and evaluate both the advantages and disadvantages associated with these financial innovations. The conclusion underscores the necessity for stronger regulation and oversight of financial innovations since unchecked complexity, excessive leverage, and inadequate risk management can precipitate to systemic collapse. Transparent markets, robust risk management practices, and prudent regulation are indispensable in averting and preventing future crises. This research highlights the critical role that financial innovations play in both driving and mitigating financial crises. By analyzing the 2007-2008 American Financial Crisis, the paper provides insights into how these innovations, while offering potential benefits, can also introduce significant risks when improperly regulated. The findings emphasize the necessity of balanced oversight to ensure innovation does not compromise systemic stability.

Effect of interbank deposit funding on the financial performance of deposit money banks in Nigeria

Failures of banking institutions have been an ongoing concern in the international banking system often leading to large economic downturns. It is concerning how quickly banks might experience liquidity crises especially when monetary policy is loose and credit is liberal. The speed at which companies experience downturns is worrying although bank failures are not a novel occurrence. Therefore, this study examined how interbank deposit funding influences the financial performance of Deposit Money Banks (DMBs) in Nigeria using dynamic panel analysis of fully modified ordinary least square from 2011-2021. Ten deposit money banks were used. The results indicate that IBR does not have a significant impact on ROE suggesting that the source of funding through interbank deposits does not significantly influence the profitability of DMBs in Nigeria. However, other factors such as Capital Adequacy Ratio (CAR), Gross Domestic Product (GDP), and Firms Age (FAG) have significant effects on ROE. The study highlights the importance of considering multiple factors beyond just funding sources when assessing the financial performance of banks in Nigeria. The study recommended that DMBs should diversify their funding sources. This can include increasing efforts to attract customer deposits, exploring alternative funding mechanisms and reducing reliance on interbank deposits. Diversification can help mitigate funding risks and enhance profitability.

Challenges and Adaptive Response of E-Banking Reality in Ghazi City: District Haripur KPK of Pakistan

The E-Banking, has been taking the role of traditional banking, is making clients easier to access online services at home and work place, save their time and money as well. Increasing technological uses in banks compel banking customers toward adoptions of E-Banking system. The term "e-banking" refers to a modern banking system in which banks offer their clients quick, nationwide, and international financial services via computer or electronic and internet services around-the-clock. Computers, internet, ATMs, and other electronic channels used to offer new and conventional products to customers electronically for instance electronic banking. Use of online banking becomes a main problem of modern era. The main purpose of this study is to highlight the factors effecting the E-Banking adoption in tehsil Ghazi, District Haripur, KPK Pakistan. There are following factors: trust, security concern, awareness, internet connection, skill of new technology, cost are being check in this study. Data is collected from the questionnaires. A total random sample size of 150 respondents was selected for this study, consisting of 76 males and 74 females. In this study firstly, descriptive analysis was conducted to summarize key findings and provide insights into the distribution of responses across different variables, Secondly, ordinal logistic regression is being regressed one by one to check the causal relationship of dependent variable with independent variables. Overall, the study highlights the importance of enhancing trust, security, and technical skills to promote e-banking adoption in Ghazi City, while also addressing cost-related concerns to make e-banking more accessible and attractive to users.

Financial Connectedness and Contagion Risk in a Dual Banking System

The 2008 subprime mortgage crisis laid bare the vulnerabilities inherent in financial interdependencies, where shocks originating from one sector and entity rapidly disseminated through complex networks, engendering a contagion effect that reverberated across the banking system. The present paper offers a comprehensive exploration of systemic risk, financial interconnectedness, and contagion within the context of a dual banking system. This appears to be a particular problem because of the heterogeneous market structure, which raises major questions about financial stability. Recognizing the profound implications of the interplay between Islamic and conventional banks, this study employs a comprehensive framework to dissect the intricate dynamics at play. The results reveal the existence of significant interconnectivity, which experiences a notable augmentation during periods of turmoil. Additionally, we provide an analysis of the topological structure of the interlinkage between Islamic and conventional banks, indicating substantial transmission of volatility, both unidirectionally and bidirectionally, across intersectoral and intrasectoral domains. However, our findings indicate that both incoming and outgoing connectivities are primarily influenced by the conventional banking sector.

Does regulatory convergence shape banking resilience in Africa?

This study examines the effects of Basel III regulatory harmonization on banking stability across 21 African nations from 2011 to 2022, using a system-GMM estimation to address endogeneity and enhance causal interpretation. Stability is operationalized through Z-scores, non-performing loan ratios, and weighted composite indices, offering a robust, multi-dimensional perspective on systemic resilience. Findings suggest that Basel III compliance enhances stability across key metrics, yet reveal a trade-off wherein liquidity buffers may detract from operational efficiency unless optimally rectified to local conditions. Furthermore, institutional quality, particularly governance and property rights protections, amplifies regulatory impact, supporting transparency and resilience within the banking system. It is, thus, imperative to fortify regulatory and governance structures, optimizing financial resilience to underpin sustainable economic growth across the region. By integrating risk-weighted Tier 1 capital convergence within stability models, this research makes a substantial contribution to banking literature, refining stability frameworks and paving the way for deeper exploration of Basel III elements to provide robust, evidence-based insights into regulatory impacts on banking resilience.

The EVFTA and Increasing the Operational Efficiency of the Banking Industry

The article aims to understand the impact of The Vietnam –EUfree trade agreement (EVFTA) on the operations of the Vietnamese banking industry. Through the collection of agreement-related documents related to the banking sector and the actual operations of Vietnamese banks, the article employs a qualitative research methodology to identify opportunities and challenges. To assess the banking industry’s ability to access and take advantage of the agreement, the study surveyed 152 leaders from thirty-six Vietnamese commercial banks. The results show that when the agreement takes effect, Vietnamese commercial banks have the opportunity to attract investors from Europe, improve risk management capacity, diversify services, promote digital transformation, bancassurance, and diversify bank income. Besides, this agreement also brings many challenges to banks such as increased costs, competition, risks, conflict of interest, requires high quality human resources. The findings also highlight barriers to the agreement’s commitments in the areas of core banking, administrative capacity, and infrastructure system network. The article then offers strategies Vietnamese commercial banks can use to improve the effectiveness of their operations.

Stabilizing The National Banking System Through Digital Financial Inclusion, Creative Innovations, And Green Finance In Low-Financially Developed Economies

Stabilizing The National Banking System Through Digital Financial Inclusion, Creative Innovations, And Green Finance In Low-Financially Developed Economies

Khung thực hiện kiểm tra sức chịu đựng rủi ro tín dụng trong giám sát ngân hàng: Kinh nghiệm quốc tế và bài học cho Việt Nam

Stress testing is one of the key supervisory tools used by banking sector regulators to assess the stability of the banking system, with credit risk being the most critical risk applied. Through a method of synthesis and text analysis, the study analyzes the process involved in the supervisory credit risk stress test. Accordingly, the author breaks down the framework for conducting credit risk stress tests into the following steps: (i) constructing macroeconomic scenarios, (ii) measuring the impact of these scenarios on credit risk, (iii) assessing the impact on banks, and (iv) the response of supervisory authorities. In addition, the author analyzes the experience of conducting supervisory credit risk stress test in Europe, the United Kingdom, and various Asian countries up to 2023 and then draws lessons for Vietnam

Artificial Intelligence in the Indian Banking System: A Systematic Literature Review

Artificial Intelligence in the Indian Banking System: A Systematic Literature Review