Theory Of Banking Research Articles

Integrating Theory and Practice of Banking M&A: Towards a Composite IT Integration Framework

Integrating Theory and Practice of Banking M&A: Towards a Composite IT Integration Framework

Indonesia Transport Loan Projects: Development Outcome Attributions (DOA) on Unemployment, Growth, and Poverty

Our goal was to investigate the effects of international development banks' foreign exchange loan-funded transportation projects. We examined the effects and efficacy of Indonesia's transport loan projects, which were supported by the World Bank and the Asian Development Bank (ADB), to achieve this, 67 projects of $8.85 billion in value were undertaken between 1972 and 2020. This study is significant because it is the first in the history of development assistance—after 100 years—that is based entirely on banking theories and practices, employing attribution techniques and presuming that all loans will be disbursed into Indonesia's economy. Nevertheless, the effectiveness narratives are untrue because—after being converted into Rupiah—less than 10% of the loan fund made it to Indonesia's economy. According to our analysis, the loans from both banks decreased growth by 200% and increased poverty by 220%, even if they were successful in providing jobs. The disbursement delays of five to seven years result in capital outflows of more than $26 for every $1 loan. Fixing this necessitates a 100% payout in Rupiah into Indonesia's national banking systems the same year that the loan agreements are executed.

Musharakah Financing: Profitability Improvement Tool for Islamic Banks

Islamic commercial banks are part of country’s financial system and play a crucial role in business industry. Similar to other business firms, Islamic commercial banks seek profits, growth and sustainability. This study attempted to analyze the effects of musharakah financing on the profitability of Islamic commercial banks. The majority of literature of finance relates to traditional finance, which has so many weaknesses. In contrast, this study focuses on Islamic banking theory with specific emphasis on Musharakah financing which is essential mechanism in the practice of Islamic banking and finance. The data were analyzed using statistical package for social science to examine the extant of the effects of musharakah financing on the profitability of Islamic commercial banks. Results: The results showed that musharakah financing has a positive effect on profitability of Islamic commercial banks (r = 0.882, p < 0.05). The study concludes that increase in Musharakah financing significantly improves profitability of Islamic commercial banks. The study presents several managerial implications, suggesting the importance of increasing service exposure to attract new customers, enhance public awareness towards musharakah financing, conduct regular visits to gain deep and accurate information concerning the operations of joint ventures business, and finally, the bank should have clearly written policy on musharakah agreement, financing, management and control systems. This study contributes to the existing literature on Islamic finance and banking, highlighting its growing global practice and theory, driven by community ethical and financial needs, innovation, and market competitiveness.

The Italian Development Bank: A Dynamic View of CDP’s Public Mission

ABSTRACT The traditional public purpose of development banks is to promote economic development by mitigating market failures in the provision of finance to public and private initiatives. However, the dynamic theory of public banks suggests that development banks functions and actions are not predetermined, but rather depend on the dynamic economic, social and political context in which they are embedded. In this paper, we focus on the case of Cassa Depositi e Prestiti (CDP), and analyse how its mission expanded since its privatization in 2003, till and further its recognition as the Italian National Development Bank in 2015. We find that CDP range of action expanded rapidly under political, economic and institutional pressures (especially from European institutions), sometimes beyond what is traditionally expected of public banks. We also analyse how CDP corporate governance evolved, highlighting strengths and weaknesses with respect to other European Development banks.

A fiscal theory of central bank’s solvency: Perils of the quantitative and qualitative monetary easing

The Bank of Japan has purchased long-term Japanese government bonds under the Quantitative and Qualitative Monetary Easing (QQE). To study monetary policy after the Bank of Japan exits the QQE, we develop a model in which the fiscal authority commits: (ⅰ) not to making fiscal adjustments needed to stabilize government debt and (ⅱ) not to providing financial supports for the central bank that incurs losses on its balance sheet due to a decline in the price of long-term bonds. Within this framework, this study investigates how the interaction between these commitments reduces the ability of monetary policy to control inflation after liftoff from the zero lower bound. We consider a situation in which the central bank that holds long-term bonds raises the nominal interest rates and show two key results: (ⅰ) when the Taylor principle is violated, under certain conditions, inflation right after liftoff cannot overshoot the central bank’s target; (ⅱ) when the central bank follows the Taylor principle, under certain conditions, it cannot prevent the economy from converging to the deflationary steady state.

Money Supply, Banking and Economic Growth: A Cross Country Analysis

The primary objective of the research is to understand the interactions between money supply, banking and economic growth for effective policy interventions and business decisions. Based on annual data for the time period (2004-2021), descriptive analysis, correlations, causality tests and panel data regressions are analyzed for a sample from India, Saudi Arabia and UAE to draw conclusions. The results favored the ‘intermediation theory’ and were contrary to the ‘credit creation’ theory of banking. It was observed that the GDP of a country can be efficiently explained by financial soundness, broad money, loans and deposits for a country. Also, that the GDP of a country influences banking loans and deposits but not vice versa. The monetary policy of the sample was questioned by the finding that GDP causes banking loans and banking deposits but not vice versa. This important finding will add to the effectiveness in business decision making.

Free banking theory: literature review and relevance to the regulation of cryptocurrencies debate

PurposeFree banking theory, as developed in Adam Smith’s 1776 treatise, “The Wealth of Nations” is a useful tool in determining the extent to which the “invisible hand of the market” should prevail in regulatory policy. The purpose of this study is to provide a timely review of the literature, evaluating the theory’s relevance to regulation of financial technology generally and cryptocurrencies (cryptos) specifically.Design/methodology/approachThe methodology is qualitative, applying free banking theory as developed in the literature to technology-defined environments. Recent legislative developments in the regulation of cryptocurrencies in the UK, European Union and the USA, are drawn upon.FindingsParticipants in volatile cryptocurrency markets should bear the consequences of inadvisable investments in accordance with free banking theory. The decentralised nature of cryptocurrencies and the exchanges on which these are traded militate against coordinated oversight by central banks, supporting a qualified free banking approach. Differences regarding statutory definitions of cryptos as units of exchange, tokens or investment securities and the propensity of these to transition between categories across the business cycle render attempts at concerted classification at the international level problematic. Prevention of criminality through extension of Suspicious Activity Reporting to exchanges and intermediaries should be the principal objective of policymakers, rather than definitions of evolving products that risk stifling technological innovation.Originality/valueThe study proposes that instead of a traditional regulatory approach to cryptos, which emphasises holders’ safety and compensation, a free banking approach combined with a focus on criminality would be a more effective and pragmatic way forward.

The dynamic role of the Internet of Things (IoT) on the excel performance of Islamic banks in United Arab Emirates

The rapid advancement of technology has substantially impacted numerous sectors, including the banking industry. It is now apparent that the banking industry is affected by the innovative role that the Internet of Things (IoT) plays, which affects a multitude of operations and services. This study uses a quantitative approach and PLS-SEM to investigate the widespread impact of Internet of Things (IoT) technology on the Excel Performance of Islamic Banks in the UAE. The study integrates the Resource-Based View (RBV), Islamic Banking Theories, and Fraud Triangle Theory to create a complete framework. The research's reliability is supported by a sample of 407 replies from 504 participants. The findings strongly support the hypotheses that IoT integration improves Islamic banking performance in the UAE, such as data analytics, customer service, automation systems, fraud detection capabilities, and asset-backed finance, while aligning with Sharia Principles and improving risk-sharing mechanisms. However, the influence of IoT on escalating fraudulent activities and hence negatively impacting performance was not proven. The study emphasizes the importance of IoT in improving operational efficiency and customer satisfaction in Islamic banks in the UAE.

The Impact of Online Loans on The Community in Sipirok Sub-District

The discussion in this study is related to the impact of online lending. Impact on people who do online-based lenajaman. In connection with that, the approach taken is the study and theories of Islamic banking which discusses the impact, online-based loans. This research is a field research (direct research in the field) with a qualitative approach. The data sources used are primary data and secondary data, with data collection techniques through observation, interviews, and documentation.The results showed that the factors that cause people in Sipirok District to make online-based loans, namely the procedure for borrowing money in online-based applications are easier to process and faster disbursement of money. The positive of online-based loans for people in Sipirok District is that the procedure for borrowing money in online-based applications is easier to process and quickly disburse money, and their needs or emergency fund needs can be met quickly. While the negative impact is a deduction of administrative money that reaches 30% of the principal money, and an inhumane way of debt collection to consumers who are in arrears of loan installment payments.

The Development of Green Banking Theory

The Development of Green Banking Theory

Sectorial Allocation of Banks’ Assets and Profitability of Commercial Banking Sector in Nigeria

This study examines sectorial allocation of banks’ assets and profitability of commercial banking sector in Nigeria. The study made use of return on assets (ROA) as proxy for dependent variable measuring profitability of commercial banks in Nigeria while banks assets allocations to Petroleum Sector, Breweries Sector, Conglomerates Sector, Agricultural Sector, Construction Sector and Fast Moving Consumer Goods Sector, was used in the study as independent variables. All data were obtained from Central Bank of Nigeria statistical bulletin and which span across 2008 to 2022. Data stationarity was ensured using the Augmented Dickey Fuller statistics, while the error correction model was applied to as the statistical tool for acceptance of hypothesis. The study also upholds the bank-based systems and that of the commercial bank theory. Sectorial allocation to the Petroleum Sector (PETR), Breweries Sector (BREW), Conglomerates Sector (CONG), Agricultural Sector (AGRIC), Construction Sector (CONS), Fast Moving Consumer Goods Sector (FMCG) is significant and positive and contributed positively to return on assets (ROA), government should ensure the proper financing and monitoring of these sectors. No causality between FCMG and PETR. PETR, BREW, CONG, AGRIC, CONS, FCMG granger cause ROA. There is a bi-directional relationship between PETR and ROA; BREW and ROA; CONG and ROA; AGRIC and ROA; CONS and ROA; and FMCG and ROA. The current risky business environment is affecting banks’ ability to lend to the Petroleum Sector (PETR), Breweries Sector (BREW), Conglomerates Sector (CONG), Agricultural Sector (AGRIC), Construction Sector (CONS), Fast Moving Consumer Goods Sector (FMCG). Commercial bank assets allocated to Fast Moving Consumer Goods (FMCG) and allocation of banks’ assets to conglomerate sector (CONG) exhibited a negative coefficients, thus suggesting reject the alternate hypothesis, and accept the null hypothesis which states that t here is no signi

The impact of ESG factors on Russia’s banking sector

An important condition for the successful incorporation of ESG principles in banks’ activity is reflecting the data on the implementation of environmental, social and governance activities in the reporting for stakeholders. The paper aims to build the models of ESG factors’ impact on the banking industry. Methodologically, the study rests on the theories of ESG banking and green (responsible) finance and uses the methods of dialectical and economic statistical analysis. By means of correlation analysis the authors reveal causal relationships and establish the ESG factors affecting the banking sector of the Russian Federation. The obtained data point to the importance of green finance within the framework of the sustainable environmental and economic development of the banking industry. The study does not fully confirm the thesis that following the ESG principles will lead to an increase in the profitability and efficiency of the banking sector: only social factors directly influence the performance of the banking sector, while environmental factors have an inverse effect, and there is no relationship with the governance factors. The findings can be useful while incorporating ESG principles in the regulation of financial markets and in investment practices. This will enable the organisations in the banking sector to form an ESG-based strategy, control the factors affecting the financial sustainability of the baking industry, manage ESG risks based on an extensive dialogue with stakeholders, and win goodwill.

Convolutional dictionary learning based on filter bank theory : Convolutional network construction using structural constraints

Convolutional dictionary learning based on filter bank theory : Convolutional network construction using structural constraints

Green Banking: The Trend of Maintaining Sustainability of Environmental Business

Various countries are currently facing the degradation of energy resources, natural resources, and environmental pollution. As the party providing financing, banks must participate in reducing environmental damage. Based on interviews conducted with 30 customers who use financing services in banking, the results show that: financing obtained from banks is used for business capital financing, which includes businesses: food stalls, catering, grocery stores, workshops, and expedition services. Based on the interview results, the fact that these businesses have not implemented the concept of an environmentally friendly business is also obtained. This type of research is qualitative research. The data sources for this study were 32 BSI customers in the Central Java region. The findings indicated that 32 respondents of BSI in the Central Java Area are already familiar with green banking. However, when it comes to e-banking, only 37.5% of respondents were aware of green banking. Up to 56.25% of customers realize the need to recycle waste and manage the waste generated by their products. In short, most of BSI's customers in the Central Java region have not implemented the green banking concept in their business. This study's practical implications imply that customers' preferences for using the money they are given to fund environmentally friendly firms may exist. Concerning its theoretical implications, this study aims to improve the theory of green banking and how it relates to the sustainability of businesses. Originality/Value: This research primarily focuses on customer perceptions of the implementation of green banking. However, no research focuses on customer business activities that apply green banking principles, especially MSMEs. At the same time, the customer's business activities are the responsibility of both the business actor and the financier (Bank).

Talent Management Development on Government Institutions Regional Civil Service Agency Semarang

The organization's talent needs for the next five years are a translation of the strategy, and a reflection of the organization's vision and mission, taking into account internal demands as well as external demands. Quality aspects included in determining talent needs include knowledge and skills obtained from experience, competence, and personality in terms of organizational culture, it is clearly stated that institutional capacity development has indicators in institutionalizing a productive and positive organizational work culture based on the noble values of the nation's culture. According to the results of research at the Regional Civil Service Agency, Semarang Regency has implemented a value system that is the basis of ethics at work. It can be in the form of politeness, hospitality, communication that shows a noble value of the nation. Thus, from participatory and democratic comes the existence of work motivation that is always growing. By strengthening the value of employee discipline, the development of institutional capacity at the Semarang Regency Regional Civil Service Agency is maximized, this is strengthened by the enactment of PP No. 53 of 2010 concerning Employee Discipline, so that supervision is stricter and punishment is more firm and severe. In the institutional capacity building program at the Regional Civil Service Agency of Semarang Regency, a budget allocation is needed to support the implementation of all organizational activities. In accordance with World Bank theory which emphasizes the attention of talent management to the focus of the organizational environment which leads to financial and budgetary support in realizing all activities and needs of the organization. This type of research is Descriptive research. The approach used is a qualitative approach and a conceptual approach. The data source used is secondary data. Data analysis was carried out in a qualitative descriptive manner. Drawing conclusions is carried out by the deductive method, which is to draw conclusions from general to specific, especially those related to the research topic, namely the development of management talent towards government institutions. Capacity building takes a long time and requires long-term commitment and all parties involved. In the development of talent management of an organization both public and private sectors, Collective Commitments are the basic capital that must be continuously developed and maintained properly. This talent management commitment is not only for power holders, but covers all components in the organization. The influence of mutual commitment is very large, because this factor is the basis of the entire design of activities and goals to be achieved together. It is expected to strengthen and strengthen the budget allocation method in accordance with the vision, mission and objectives of governance as well as the development of regional revenue sources.

Perfect reconstruction two-channel filter banks on arbitrary graphs

This paper extends the existing theory of perfect reconstruction two-channel filter banks from bipartite graphs to non-bipartite graphs. By generalizing the concept of downsampling/upsampling we establish the frame of two-channel filter bank on arbitrary connected, undirected and weighted graphs. Then the equations for perfect reconstruction of the filter banks are presented and solved under proper conditions. Algorithms for designing orthogonal and biorthogonal banks are given and two typical orthogonal two-channel filter banks are calculated. The locality and approximation properties of such filter banks are discussed theoretically and experimentally.

Pengaruh Ukuran Perusahaan, Profitabilitas, dan Ukuran Dewan Pengawas Syariah terhadap Pengungkapan Islamic Social Reporting


 
 
 
 This research is being to testing the impact of company size, profitability, and the size of the Sharia Supervisory Board (DPS) is to provide Islamic Social Reporting (ISR) disclosure in Indonesian Full-Fledged Islamic Bank for the years 2017 through 2021. Eviews12 is a method that is used for quantitative analyzing regressive data panel. By using purposive sampling method, the sample revealed that 11 Full-Fledged Islamic Bank were registered with OJK. FEM (Fixed Effect Model) is the most suitable estimate for this model. The study’s findings show that ISR disclosure is simultaneously have significant positive effect by the size of the company, profitability, and DPS size. ISR disclosure is partially has a significant positive effect by the size of the company. This study may be used to support the Full-Fledged Islamic Bank theory, which seeks to reduce ISR harm based on company size, profitability, and DPS.
 Keyword: Company size, profitability, DPS size, ISR 
 
 
 

Green Banking Development: A Case Study of Vietnam

Purpose: The objectives determine factors affecting green banking development in Vietnam. The authors proposed policy implications that contributed to the green banking development in Vietnam. Theoretical framework: For long-term sustainable economic development, many countries worldwide have chosen to develop a green economy, including the theory of green banking. Design/methodology/approach: The research method of the paper is a combination of qualitative and quantitative research methods. Qualitative research was conducted with a group discussion technique, checked the scales used, and consulted with banking managers on the research issue, thereby building the scales included in the research model and setting up and completing the questionnaire. Quantitative research was carried out from January to February 2023. Processing data by statistical methods, analyzing EFA and CFA, using linear structural model analysis (SEM) to test the fit of models and hypotheses with SPSS 20.0 software and Amos. Findings: The article showed that banking technology substantially impacts green banking development among eight factors. Research, Practical & Social implications: The study has inherited and supplemented the scale in the model and a new set of scales used to evaluate the development of green banks, systematized, increased, and developed more basic theoretical issues about banking green. Originality/value: The paper's originality and value help researchers, managers, and policymakers for Vietnamese commercial banks, in particular, and the banking industry, in general, to apply to contribute to the development of green banking and the green economy in the future.

An All-Digital Background Calibration Technique for M-Channel Downsampling Time-Interleaved ADCs Based on Interpolation

An all-digital background calibration technique for gain, timing, and bandwidth mismatches in the time-interleaved analog-to-digital converter (TI-ADC) is presented in this brief. The proposed calibration technique employs an interpolation filter and a Hilbert filter to generate a reference sequence for each sub-ADC. Subsequently, adaptive filters are used to calibrate the mismatch errors, the coefficients of which are updated by the least mean square (LMS) algorithm. The advantage of the technique is that it only requires the output sequence of the TI-ADC without any additional information or extra reference channels. Moreover, it is effective for the M-channel TI-ADC sampling of single-tone, multi-tone, and wideband signals in any Nyquist Band. The frequency shifting is analyzed via filter bank theory, avoiding the complex signal introduction. The simulation for 4-channel TI-ADC with 5 sinusoidal input signals, shows that the proposed technique can improve the SNDR and SFDR by 37 dB and 54 dB, respectively.

The Impact of Online Loans on The Community

The discussion in this study is related to the impact of online lending. Impact on people who do online-based lenajaman. In connection with that, the approach taken is the study and theories of Islamic banking which discusses the impact, online-based loans. This research is a field research (direct research in the field) with a qualitative approach. The data sources used are primary data and secondary data, with data collection techniques through observation, interviews, and documentation.The results showed that the factors that cause people in Sipirok District to make online-based loans, namely the procedure for borrowing money in online-based applications are easier to process and faster disbursement of money. The positive of online-based loans for people in Sipirok District is that the procedure for borrowing money in online-based applications is easier to process and quickly disburse money, and their needs or emergency fund needs can be met quickly. While the negative impact is a deduction of administrative money that reaches 30% of the principal money, and an inhumane way of debt collection to consumers who are in arrears of loan installment payments.