Financial Banking System Research Articles

PENGARUH KOMPETISI BANK TERHADAP STABILITAS SISTEM KEUANGAN PERBANKAN (STUDI KASUS PADA KBMI IV TAHUN 2019-2022)

The emergence of banking as an intermediary institution plays a very important role in the economy because it is the heart that must pump "money" and distribute it to all organs that need the money. Therefore, it is very important to maintain the stability of the banking financial system. The development of the banking system can trigger competition in the banking industry which can affect banking stability. This research was conducted to determine the effect of bank competition on the stability of the banking financial system. This research focuses on KBMI 4 data which is a large bank HHI index, market share and Loan to Deposit Ratio (LDR) used as a proxy for competition and Non-Performing Loans (NPL) as a proxy for banking financial stability. The analysis technique used is Panel Data Regression with KBMI 4th ​​quarter data for 2019-2022. Of these three variables, the HHI index and Loan to Deposit Ratio (LDR) variables have a significant effect on Non-Performing Loans (NPL). Meanwhile, the market share variable has no significant effect on Non-Performing Loans (NPL).

Cryptocurrencies and Money Laundering

Abstract Financial transactions involving cryptocurrencies have seen significant growth in recent years. Individuals and companies are using cryptocurrencies as a medium of exchange. This unstoppable process has brought opportunities for the cost-effective performance of financial transactions, but at the same time challenges for law enforcement institutions. A significant portion of cryptocurrency transactions are conducted outside the conventional banking financial system. Such transactions are difficult for law enforcement authorities to trace. There is a high possibility that cryptocurrencies will be used by money launderers to hide their identity and launder their proceeds of crime. Offshore Financial Centers, which apply a high degree of anonymity, are widely using cryptocurrencies. Countries and international institutions should take coordinated action to tackle money laundering in the field of virtual currencies as it is very difficult for one country, alone, to fight the phenomenon of money laundering in the world of cryptocurrencies. The study focuses on the difficulties faced by financial institutions and law enforcement authorities in tracking cryptocurrency transactions in the context of prevention of money laundering, seen from the Albanian perspective.

The Impact of Macroeconomic Indicators and Bank Spesific Factors on Comercial Bank NPLs in the Province of South Sumatera

Non-Perfoming Loan or non-performing loan is a ratio that can affect the stability of the banking financial system if NPLs are not managed properly, it will cause chaotic financial conditions and will cause economic problems.The purpose of this research is to examine the impact of macroeconomic indicators and bank-spesific factors on the Non Perfoming Loan ratio of commercial banks in Lampung Province. The study made use of time series data from 2010QI – 2022QIV. The type of data used is secondary data obtain from the Central Bureua of Statistics and Bank Indonesia. The independent variabeles are macroeconomic indicators such inflation, exchange rate, BI rate, as well as bank-spesific factors such as LDR, with Non-Perfoming Loan serving as the dependent variable. This study employs multiple liniear analysis methods as well as traditional assumptions. The findings revealed that macroeconomic variables and bank specific indikators both affect NPL, with LDR having a partially negative effect on NPL. The exchage rate has a positive effect non-perfoming loans, while inflation and the BI rate have no effect.

Big Data Analytics Implications on Central Banking Green Technological Progress

This paper examines big data analytics implications on the central banking financial system’s technological progress. A digital technological progress framework and model is established to analyze the economy’s aggregate supply via covering the monetary policy, big data analytics, pollutants emissions as independent variables and the economy’s aggregate demand as a moderating variable in a modified extensive growth theory framework and model to compute the productivity indicators and the total factor productivity (TFP) as the central banking technological progress that combined the mentioned variables qualities contribution. Besides, data analytics positive and negative externalities that include data analytics shortcomings as unpriced undesirable output in the form of cybersecurity and pollutants’ emissions among other proxies are internalized in the framework and the model to integrate the digital technology innovation with digital technology shortcomings and climate change. This revised extensive theory framework and model is a remarkable technique comprehensive of the technological progress matters and sustainable economic development and is considered one of the most important sustainable development and long-run economic growth proportions in the central banking financial system functions to manage the economy’s aggregate supply and demand that unnoticed by previous studies.

Islamic Banks In Muslim Countries And Indonesia

This article aims to provide an overview of Islamic banking, which has shed light on Muslims in avoiding usury with inflation and oppression. The negative impact of cartels can be reduced. Suppose traditional banks have only one way to work, interest-bearing loans, although in many forms. The problem inherent in Islamic banking activities is whether they can be separated from the influence of conventional banks in various activities carried out, given the interrelationships between Islamic banks and traditional banks. By conducting a literature study, we analyzed banking data contained in documents, books, and journals using a qualitative approach using descriptive analysis methods. We try to provide an interpretation of the work of Islamic banks operating in various Islamic worlds and Indonesia. We found Islamic banks to be less compliant with the fatwas and instructions given by the existing Islamic boards. We find that Islamic banks have difficulty complying with shari'ah rules because they are constrained by the conventional banking financial system full of usurious Mu'amalah. Constrained by capital from the central bank, high operating costs, investment problems in the real sector, risk of loss and others. The focus of this research is the causes of the condition of Islamic banks in the Islamic world, which are trapped in a Ribawi labyrinth

The influence of the real estate market on the economic development of Constanța County

At the local level, the promotion of sustainable economic development by creating a favorable business development climate and new employment opportunities is necessary to increase the well-being and development of communities. The economic and social mechanism of the real estate market guides economic agents’ activity, being influenced by its relationship with other sectors of the economy, such as construction, trade, tourism, the financial banking system and, last but not least, the management of local public administrations, which allow the development of various types of investment projects. The aim of this article is to carry out an analysis from a dynamic perspective of the real estate market at the level of the economic agents in Constanța County, which operate in the field of real estate transactions, showing how their economic effects influence local development. The results of this research show that companies in the real estate transactions sector, together with the construction sector, play an important part in the development of the local economy, and that there is a positive relationship between the real estate market and the construction market.

PENGARUH LOAN TO DEPOSIT RATIO, NET INTEREST MARGIN DAN NONPERFORMING LOAN TERHADAP STABILITAS SISTEM KEUANGAN PERBANKAN DI INDONESIA

<em>This study is to determine the effect of loan to deposit ratio, net interest margin, and non-performing loan on thestability of the banking financial system. The population in this study were banks that had an Initial Public Offering on the Indonesia Stock Exchange before March 1, 2016.The sample in this study was determined by purposive sampling technique. All data used is sourced from financial ratio calculation data downloaded from the Financial Services Authority and the Indonesia Stock Exchange Quarterly Financial Report.</em>

The Banking Financial System as a Critical Infrastructure of the Current and Future Society

Abstract The existence and development of current and future human society depends on the proper functioning of the banking financial system. The capital and the market, as essential elements of social development, are fully integrated into the global social system and represent the engine of progress. From a systemic perspective, with reference to the concept of critical infrastructure, for the economy and society, the banking financial system is like the circulatory system for a living organism. In this respect, this analysis demonstrates the essential role and necessity of the existence of the banking financial system as a critical infrastructure.

Analisis Kinerja Keuangan Bank Syariah dan Peran Kebijakan Ekonomi Islam pada Masa Pandemi Covid-19

Abstract: The covid-19 pandemic is an epidemic of dangerous diseases that have attacked the world, including Indonesia, resulting in death. Covid-19 has a significant impact on the development of the world economy. The current pandemic has resulted in all sectors of human life, without exception. The Islamic banking financial system is being affected by the pandemic. This research aims to analyze the financial performance of Islamic banks and the role of Islamic economic policies. This research uses quantitative analysis. This research type is based on using statistical procedures. The results show that the bank's financial performance is still healthy to face the risk of loss events during the Covid-19 pandemic. The average value of the ROA ratio is 0.88%, which means it is pretty healthy. While the average value of the ROE ratio is 5.35%, which means it is pretty healthy. Meanwhile, the average NPF ratio of 3.89% means healthy, and the average value of the BOPO ratio is 90.37%, which means it is very healthy. The solutions offered include distribution of exclusive cash donations based on zakat, infak, alms, and endowments, then through donations of superior venture capital for the business sector or Micro, Small, and Medium Enterprises, as well as through the development of Islamic financial technology.

The Role of Payment Tools Using Card to Stability of Sharia Banking Financial System

The financial system has a very strategic role in supporting economic activities. The financial system which is part of the economic system carries out an intermediary function that allocates funds from parties who experience excess funds (surpluses) to those who lack funds (deficit). Islamic financial system is a financial system that bridges between those who need funds and those who are excess funds through financial products and services that are in accordance with Islamic principles. The Development of Card Based Payment Instruments in Indonesia and the development of sharia banking in Indonesia experienced harmonious and positive growth from 2012 to 2020. If it is associated with the development of Card Based Payment Instruments that the author can conclude that the use of electronic cards such as credit cards, cards ATM and ATM debit cards have a very important and positive role for the development of sharia banking financial stability, namely sharia banking business activities because the use of electronic cards will further enhance sharia banking business activities, namely funding, lending, and services.

THE IMPACT OF GLOBAL SECURITY ASSURANCE ON THE SOCIO-POLITICAL MODERNIZATION OF THE REPUBLIC OF MOLDOVA

Global security, as a concept, has developed on the basis of international legislation on the national security of states, but also on international humanitarian law, which focus on the protection of global harmony and sustainable development. The national and international political system, in the phase of overcoming crises, in correlation with the challenges and threats to global security, acquires new valences and functions, given that international bodies, supported by national state structures, are forced to face the intensification of evolution. alignment of the world balance. As current threats of a global nature, but manifested locally and in connection with the national security of the Republic of Moldova were identified as: poverty, economic underdevelopment and energy dependence, transnistrian conflict, tensions in the area and foreign military presence, external coercion, the criminogenic factor, corruption, the demographic problem and the exacerbation of the migration phenomenon, population health, natural disasters, environmental pollution, technogenic accidents, information insecurity, instability of the financial-banking system.

"The banking system of emerging economies in Asia against the background of COVID-19. Case study – the ASEAN area"

"The importance of the banking system for the economy has been intensely debated in specialized works and numerous studies and articles highlight the connection between banks and economic development. The article analyzes the banking system in Asian emergent economies, particularly in the ASEAN area, in the context of the coronavirus pandemic and it highlights the importance of financial and banking institutions in implementing the initial batch of measures authorities have enforced in order to limit the impact of COVID-19 on the economies in the region. The financial-banking system in the ASEAN area was quick in reacting to the pandemic and it showed flexibility and adaptability to the new economic context. Banks in that region are the main source of funding for the economy; in addition they are open to new technologies and cooperation with fintechs, so that the new context, where consumer behavior is changing as a result of lockdowns and medical restrictions, favors digitalization, and financial institutions are accelerating their strategies for digital transformation. The evolution of the economy depends on the evolution of the medical crisis, but the manner the pandemic will evolve is uncertain. The sole certainty is that the manner banks are currently reacting to the crisis will determine the manner they will rebuild themselves for the future."

The need for Islamic banking services in commercial banks of Uzbekistan and its positive impact on economic growth

This article presents the development of Islamic banking services, development trends in the World Bank financial system and the factors influencing the growth of the country’s economy. Today, two-thirds of Islamic finance is concentrated in Islamic banks. The urgency of establishing Islamic banking services in commercial banks is highlighted. There are practical suggestions and recommendations for the development of this area.

Criticality Analysis of Shadow Banking System Deregulation

The objective of our article is to analyze the criticality of the deregulation of shadow banking system in different economic environments. It is defined like a financial intermediation system carried out outside the framework of classical banking and financial activities. Shadow banking system shows a lot of advantages in terms of the financing of the economy. It is an alternative for the investors and the economic agents. So it constitutes an alternative solution to the problematic of access to financial products of the classical banking system. It offers a possibility of diversification and socialization of risks while allowing an objective and more efficient allocation of financial resources without major constraint. Its activities are not illegal and it completes the classical financial banking system. Its usefulness is well established, but the need for its supervision remains an essential concern for economic agents. If shadow banking system is not regulated, it can bring about, in the market of capitals, toxic financial titles which are created by less credible financial entities. This can cause a disturbance of the economy and a deregulation of the global financial system. Like any other financial system, shadow banking has some risks which it spreads in the economic system if an adequate regulation, with well- established norms, does not govern its implementation.

Emotional Intelligence, Occupational Stress and Job Performance in the Romanian Banking System: A Case Study Approach

Abstract The research aims to analyze the relationships developed among emotional intelligence, occupational stress and employee performance in the financial banking sector. In other words, it aims to: (i) analyze the specialized literature regarding the concepts of emotional intelligence, occupational stress and job performance; (ii) to measure employees’ emotional intelligence, occupational stress and work performance; and (v) to analyze the relationship established among the aforementioned variables (emotional intelligence, occupational stress, job performance). A quantitative approach is adopted and a case study strategy is employed due to the fact that the research focuses on investigating a phenomenon which is frequently encountered in the real context of today’s organizations. Thus, a single-case study analysis is used and a survey based on a questionnaire is developed among 55 employees from the administration department of ING Bank Romania (Bucharest). The hypotheses are tested using partial least square - structural equations modeling and the results prove that in the Romanian banking institutions: (i) there is a negative relationship between employees’ emotional intelligence and the occupational stress; and (ii) there is a positive relationship between emotional intelligence and job performance. These findings have both theoretical and practical implications. At the theoretical level, the present study extends the theory from the human resources management field by proposing a model for evaluating the relationships established among emotional intelligence, occupational stress and job performance in the Romanian banking financial system. At a practical level, it increases managers’ understanding regarding the factors that influence employees’ performance and it provides several strategic directions that could be taken into account for future improvement.

Competition in the insurance industry in Ecuador: An econometric analysis in life and non-life markets

This study empirically analyzes the degree of competition in the insurance industry segmented in life and non-life market in Ecuador from 2001 to 2016, we use the Panzar and Rosse methodology to assess the competitive conditions, we apply POLS, year fixed effects, firm fixed effects and random effects, then we determine if the market is in long run equilibrium to validate the conclusions obtained. We analyze two different markets to provide evidence of the competitive environment in which firms operates, we have added certain control variables such as firm size, whether the insurer is public, whether it receives foreign investment and if it is related to the banking financial system. The results indicate that insurance industry in Ecuador operates in a perfect competition environment, we find that life and non-life markets are in long run equilibrium; other result shows that being related to banks in the Ecuadorian financial system improves the revenue generation; being a public insurer and receiving foreign investments do not have a relationship with revenue.

RESTRUCTURING OF LOANS – NECESSITY AND EFFECTS IN ROMANIAN BANKING ACTIVITY

Banks will use specific tools to develop and compare alternative scenarios to determine what the opportunities to restructure a loan are, and to identify the most appropriate bargaining levers. Restructuring activity involves early identification of the problem and empowering teams consisting of bank specialists to solve the magnitude of the existing intervention. After analysing the unfavourable situation of the customer they perform the necessary steps to implement and monitor the restructuring solution. Also, banks are following and evaluating the risks associated with the restructuring of loans to cover up or avoid the occurrence of effects that will degrade the good functioning of things. Customers should be informed about the restructuring process to see what kind of measures can be taken to improve their financial situation. They can solve their financial difficulties by changing the monthly payments and their business activities. The issues that affect the customers are the increased payment amounts and the time when those payments have to be made. In case of insolvency, the banks resort to the judicial reorganization of the clients' activity, in order to avoid enforcement or bankruptcy of the company, which will create negative repercussions on the functioning of the bank's financial system but also on the image created by this. This paper aims to analyse the implications of the restructuring of loans for banks and customers. The analysis has been conducted by using an econometric study based on annual data of banks active in Romania.

MACRO VARIABLES IMPACT ON CREDIT RISK AND INFLUENCE IN BANKING CAPITAL AND JOB CUTS IN ROMANIA

The scope of the research paper is to capture the connection between the representative macro-economic variables, gross domestic product, gross salary income, exchange rate EUR/RON, active interest rate and unemployment rate, respectively the variables which quantify the credit risk, non-performing loans rate and credit risk rate. For the quantitative analysis we used the VAR econometric models, the study being completed with a qualitative analysis which observes the influence in the credit institutions capital and the available jobs in the financial-banking system. The results obtained showed a considerable influence of the exchange rate, gross salary income and interest rate on the credit risk rate, while the non-performing loans rate was mostly influenced by the interest rate and gross salary income. The qualitative analysis exposed that at global level the losses registered in the banking sector were about 1.2 trillion USD, while the new capital raised was about 1 trillion USD and almost 390 thousand job cuts. In the Romanian banking sector, the study illustrates cumulated losses of 13.3 billion lei, compensated by an increase in capital at about 21 billion lei and restructuring of about 15 thousand jobs. The results obtained have both practical applicability, but also in the economic policies, clearly exposing the effects of the credit risk through the deterioration of the macro-economic environment. The information presented through the empirical analysis can be used by the researches, supervision and regulatory authorities or by the credit institutions in stress testing, forecasts or resolution decisions.

A SaaS-based Software Modeling for Bank Intermediary Business

Software-as-a-Service (SaaS) is a new research orientation for developing software, and has multi-tenancy architecture and customization features, which are very suitable for performance and benchmark test of OLTP transactions. And Bank Intermediary Business (BIB) is the most important business of Bank financial system. This paper focuses on establishing the SaaS-based BIB performance and benchmark architecture and proposes the SaaS-based BIB Database Model (SaaS-BIB-DM), the architecture layer (SaaS-BIB-AL), the data flow view (SaaS-BIB-DF) and the representative transaction model (SaaS-BIB-TM). The database is further extended with the SaaS hybrid two-layer partition methodology and the performance is proved to be better than that in three-tier C/S architecture. And the specific SaaS-based BIB architecture which we proposed is 4-level SaaS-based architecture. Based on the analysis the state-of-art of BIB and SaaS, the paper further investigates future trend of SaaS-based performance testing architecture and benchmark.

TOWARD OPTIMUM SYNERGY OF MONETARY POLICY IN DUAL FINANCIAL/BANKING SYSTEM

In a country adopting dual financial/banking system, where a conventional financial system coexists with an Islamic financial system, monetary authority has the responsibility to maintain financial/monetary stability and synergy of both systems. This study analyses and compares one of the main pillars of conventional monetary system and Islamic monetary system (i.e., interest system vs. profit-and-loss sharing/PLS system) and try to come up with the possible conduct of optimum monetary policy under dual financial/banking system. The results show that PLS system is superior to interest system in fairness, justice, efficiency, and stability. Therefore, the optimum synergy in the dual financial/banking system can be achieved when monetary policy in conventional system benchmarks its policy rate to the PLS market return in Islamic financial market of Islamic system, which will ensure optimum market efficiency that maximize distributive social welfare and justice. Monetary policy in managing money supply is only a response to the dynamic activity in the real sector. While, active monetary policy can be conducted, not by altering M, but by altering V, i.e. to increase the flow of money in the economy by issuing central bank SUKUK with PLS market return to finance government projects, commercially as well as socially, in the real sector. Keywords: Islamic Monetary System, Islamic Financial System, Dual Banking Financial System