Development Of Financial System Research Articles

Rulings of the London Metal Exchange in Islamic Law: An Analysis of Islamic Banking Instruments and Challenges

Purpose: The Islamic banking system is recognized for its role in promoting the equal distribution of resources and its emphasis on risk management. This research paper explores the rulings of the London Metal Exchange (LME) within the framework of Islamic law. The main objective is to investigate the involvement and impact of Islamic banking in LME contracts.
 
 Methods: The study utilizes both primary data, obtained through interviews with Islamic banks and LME management, and secondary data from previous research.
 
 Results: The findings highlight the significant role of Islamic banks in facilitating LME contracts, with Murabaha, Tawarruq, Istisna, Salam, and Kafala identified as the most commonly used instruments in the GCC regions. However, Islamic banks also face challenges, including criticism from Muslim scholars regarding certain practices.
 
 Conclusion: Despite these challenges, there are several opportunities for Islamic banks to contribute to the further development of the Islamic financial system. By addressing concerns, increasing awareness, and adhering to Islamic principles, Islamic banks can play a pivotal role in shaping the future of the financial industry.

Data Security Issues and Countermeasure Suggestions for Financial Big data: A Literature Review

Financial Big Data is a contentious topic that needs to be addressed because it is having an increasingly negative impact on people's everyday lives, work habits, and thought patterns. The leakage of financial big data is just one of the issues that financial big data is now dealing with. As a result, the study focus of this work is on the data security problems and solutions related to financial big data. This paper summarizes four main categories of data security issues related to financial big data: attacks on financial big data, data leaks related to financial big data, issues with the reliability of financial big data, and issues with access control related to financial big data. Based on these four problem categories, it searches the literature and organizes the suggested solutions as follows: pay attention to the development of financial data security systems in a big data environment, strengthen education and training, increase the da-ta security awareness of various roles, optimize the processing of big data, and strengthen the storage security of big data by strict user access control. This paper's thought and research also reveal that while financial big data does provide data security issues, it also serves as the primary means of addressing the issue itself. Less research has been done on using financial big data as a countermeasure in and of itself. In the future, we should focus on financial big data itself and explore ways to use financial big data as a countermeasure to data security problems.

A nonlinear analysis of the impacts of information and communication technologies on environmental quality: A global perspective

Although many current studies have explored a series of factors influencing environmental quality, few have investigated the nonlinearity between information and communication technology (ICT) and the environment. This article uses the method of moments quantile regression (MM-QR) technique to evaluate the nonlinear and heterogeneous effects of all influencing factors on carbon dioxide emissions under various emission distributions. Using panel data from 90 countries, the results first indicate that ICT exerts a significant positive impact on carbon emissions; specifically, the higher the level of ICT development, the greater the carbon emissions. Second, in the conditional distribution of carbon emissions, the influence of ICT exhibits considerable heterogeneity, and ICT development has a larger positive effect on carbon dioxide emissions in countries with lower levels of pollution from a global perspective. Finally, the adverse impact of ICT on the environment can be mitigated through financial system development, urbanization, industrialization, and trade openness. This study enriches existing related literature and provides targeted insights for governments and policymakers in low- and high-pollution countries to reduce environmental pollution and promote sustainable development.

For narrower income inequality: traditional finance or microfinance?

ABSTRACT This paper uses the theory of information imperfections to examine the relationship between income inequality and financial development in a dual financial system comprising traditional finance and microfinance. It uses panel data for 97 developing countries over a period characterized by declining income inequality from 2000 to 2017. Traditional finance is measured through domestic credit relative to GDP and the IMF Financial Development Index. Microfinance is measured through the size of microfinance gross loan portfolio relative to GDP and the number of active microfinance borrowers to the total population. Controlling for various measures of macroeconomic and socioeconomic variables and using different econometric specifications including a random-effects linear regression model with endogenous sample selection, the results show that microfinance consistently predicts a lower income inequality measured by the Gini coefficient, while traditional finance shows no impact. The findings of this paper draw clear policy implications regarding the role of microfinance as a tool for income equality in developing countries.

Path analysis of financial assistance to business development by applying coupled coordination degree model

Abstract The interaction between financial assistance and enterprise development is examined in this paper by constructing a coupled coordination degree model. The weights of the secondary indicators in the financial assistance and enterprise development system are calculated using the entropy weighting method. By calculating the coupling degree between financial assistance and enterprise development, we can judge the strength of the coupling effect between them and the time interval. The financial system and enterprise development evaluation indexes were constructed to explore the factors affecting financial assistance for enterprise development. Under certain conditions, financial support and enterprise development can positively affect each other, as shown in the results. The development support weights in the financial support system are 0.1979 and 0.2231, and the total weight is 0.421. The enterprise development system has a technical weight of 0.5806 for technological innovation.

Особливості оцінки фінансової грамотності та фінансової поведінки українців під час війни

This article emphasises the need to improve the level of financial literacy of the population, which is a qualifying driver of the harmonious development of the state's financial system and has particular relevance in the post-war economic recovery. The impact of the war on financial behaviour and the use of FinTech innovations by Ukrainians is determined. The purpose of the article is to clarify the peculiarities of assessing financial literacy and financial behaviour of Ukrainians during the war, taking into account the specifics of the impact of financial technologies (Fintech) on the economic development and welfare of Ukraine. The conceptual framework for assessing financial literacy and financial behaviour of the population is formed, which is presented as a set of interrelated elements. The paper presents the results of a survey conducted among Ukrainians, including those with IDP status, within the framework of the UK-Ukraine twinning grants scheme (Project UUT23 "Fintech as a fence for the shock and fuel for the recovery? Lessons from the war"). The results of the survey allowed us to formulate a set of recommendations both at the macro level and at the level of an individual provider to ensure that the financial market and fintech tools perform the function of economic recovery after the social trauma suffered by consumers of financial services.

Does Financial Development in Relation to Remittances influence Economic Growth in Sub-Saharan Africa?

Abstract This study investigates the influence of financial development on the relationship between remittances and economic growth within the Sub-Saharan Africa region. The study utilised panel data encompassing 42 countries, spanning the time frame 1980 to 2021. The research employed a cross-sectional augmented panel unit root test, as well as the Im-Pesaran-Shin unit-root test, to conduct the unit root analysis. The regression estimations employed the Pooled Mean Group and Mean Group/ARDL methodologies. The research findings demonstrate a significant association between the development of financial systems and sustained economic growth over an extended period. The findings from the empirical analysis indicate that there exists a substitutive relationship between financial development and the association between remittances and economic growth. The study proposes that it would be advantageous for financial policies in the Sub-Saharan Africa (SSA) region to give priority to the implementation of efficient financial reforms with the goal of improving the overall depth of the financial sector. Keywords: Remittances, Financial development, ARDL, Economic growth, Sub-Saharan Africa.

Diaspora remittance, financial system and sustainable economic development in Nigeria

The Study x-rayed diaspora remittance, the Nigerian financial system and sustainable economic development in Nigeria. The study used remittance inflows as measure of Diaspora Remittance and the Gross Domestic Product (GDP) as a measure of sustainable economic development. The study examined the absorptive capacity of the Nigerian financial system to mobilize diapora remittance and transform same into sustainable economic growth and development. Content Analysis (CA) technique was deployed to analyse and examine the data collected from the Central Bank of Nigeria (CBN) Statistical Bulletins for various years, Nigerian Bureau of Statistics (NBS) and the World Bank Development Indicators data base from 1987 to 2020. The data are comprised of the values of diaspora remittance, Gross Domestic product (GDP) and Official development Assistance (ODA). The analysis of the data revealed that the Nigerian financial system mobilized millions and billions of US dollars in remittance into the economy for the period which span thirty fours years with diaspora remittance reaching its peak of twenty six billion, eight hundred and ninety one million, nine hundred and eighty thousand two hundred dollars in 2011. Between 2011 and 2020, the Nigerian financial system raked in an average of twenty five billion US dollars in remittance inflows into the economy. Following from the foregoing findings, the study recommended that the Central Bank of Nigeria (CBN) being the monetary and regulatory authority of the banking system, should formulate policies that would further encourage the inflow of Diaspora remittance through the banking system such that diaspora remittances are well utilized to boost employment generation in order to engender sustainable economic growth and development.

Pengimplementasian Kebijakan Desentralisasi dan Otonomi Daerah Terhadap Hubungan Keuangan Daerah Pusat dan Daerah

The effects of decentralization and regional autonomy on Indonesia's federal-regional financial ties are the subject of this brief study. Patterns of financial interactions in the implementation of regional autonomy, changes to statutory rules, and the history of central and regional financial legislation are all part of the issue. The development of efficient financial systems requires substantial work, but regional autonomy also affords regions the chance to boost their own financial performance. The structure of central-regional financial connections may be affected by decentralization and regionalautonomy policies; how prepared institutions are, available human resources, financial management systems, and budget submission procedures are all crucial factors to consider. Implementing decentralization and regional autonomy policies in Indonesia is expected to have a good influence on financial ties between the center and regions if these aspects are carefully considered.

Financial inclusion: a catalyst for financial system development in emerging and frontier markets

PurposeThis study aims to examine the relationship between financial inclusion and financial system development in emerging and frontier markets.Design/methodology/approachUsing data across 35 countries over 19 years (2004–2022), the improved GMM estimation technique reveals that financial inclusion significantly contributes to the development of financial systems.FindingsThe study uses a segmented approach, dividing financial development indices into subindices: financial depth, financial access and financial efficiency. Indicators of bank financial inclusion show a positive and highly significant relationship with bank depth and access but a negative relationship with bank efficiency. Similarly, indicators of the debt market and stock market financial inclusion demonstrate positive relationships with market depth and access but negative relationships with debt and stock market efficiency. The study further examines composite indexes of financial inclusion for bank, debt and stock market segments, finding strong and highly significant relationships with market development. These results underscore the importance of promoting financial inclusion across all segments of the financial sector to achieve an inclusive financial system.Practical implicationsThe implications of this research highlight the need for policymakers and practitioners to implement policies and regulations that enhance financial inclusion and foster the development of robust financial systems. By extending access to mainstream financial instruments and services, financial institutions can stimulate financial intermediation and support, thereby accelerating the development of the banking, debt and stock markets.Originality/valueThe study is robust to the use of several indicators of financial inclusion and financial development, and it forms part of the early studies that examine the close relationship between the two variables.

Use of the Codeigniter Framework in the Design and Development of the Balance Sheet-Based "Sikmajo" Financial Information System.

Sikmajo is an online store that provides a place for users to buy and trade the products they want to trade. Currently, sikmajo does not yet have a good financial reporting system. By utilizing the codeigniter framework to design the application design to simplify and speed up the manufacturing process. Model, View, and Controller, or what is often called (MVC) is one of the supporters of making applications. The implementation of the Balance Sheet system in the Sikmajo online store is used for financial reporting. The purpose of this research is to provide convenience in the process of inputting income and expenditure data, helping speed up the performance of the finance department, and improving accuracy in financial reporting. With this system, it is hoped that it will make work easier for people. So that online business processes will develop rapidly. This study examines the development of a web-based Financial Information System by utilizing the CodeIgniter Framework. Especially in accurate and efficient financial management. The CodeIgniter framework was chosen as the basis for the development of this system because it provides an organized work structure with the Model-View-Controller (MVC) pattern and has security features that are able to protect the integrity of data and financial information. In testing this system, the author uses the Black Box method to ensure that the system functions and output are as expected. This system provides solutions for companies to overcome financial management problems and has the potential to increase operational efficiency and effectiveness.

The effects of the informal economy on the relationship between financial development and economic growth

The relationship between economic growth and the development of financial systems has been analyzed from different perspectives for a long time. This paper addresses the effects of the informal economy on the relationship between financial development and economic growth, using a panel data covering 20 countries during the period 1993–2020. The results show that financial development, as measured by the IMF’s Financial Development Index, is positively associated with economic growth (the coefficient α1 related to financial development fd is positive and statistically significant at 5%). The results also show that large sizes of the informal economy moderate the influence of this association (α1 remains positive and statistically significant at 1%, while the coefficient α2 related to the interaction between financial development and informal economy, fd and ie, is negative and statistically significant at 1%). In effect, financial development has the greatest impact on economic growth whenever there is control over the informal economy’s size. Inversely, a favorable ground for the informal economy limits the positive association between financial development and economic growth. However, the results show the absence of a causality relationship between financial development and economic growth (W-bar = 1.0015 and Z-bar = 0.0048; p-value = 0.9980). The informal economy plays no role in making this type of link significant (W-bar = 0.9761 and Z-bar = -0.0756; p-value = 0.9520).

Country-level institutional quality and financial system efficiency: An international evidence.

The optimum economic outcome of financial system development depends on its level of efficiency. The purpose of this study is to investigate the effect of institutional quality on financial system efficiency. For empirical analysis, we have used a panel dataset of 108 countries from 1996-2020 and employed fixed effect regression and two stages least squares (2SLS) regression methods. The empirical results show that institutional quality has a significant positive effect on financial system efficiency. Particularly all the constituting elements-voice and accountability, political stability and absence of violence, regulatory quality, government effectiveness, rule of law, and control of corruption-of institutional quality are found to have a significant positive impact on financial system efficiency. Moreover, we found that the effect of institutional quality is more pronounced in countries with low-income levels and strong institutional quality. These findings are robust across several robustness tests conducted using additional controls, alternative methodologies, an alternative measure of institutional quality, and financial system efficiency. The results of the study suggest that policy makers should prioritize both enhancing and sustaining institutional quality to promote the efficiency of the financial system, which is crucial for sustainable growth and development.

Reinforcing policy and legal framework for Islamic insurance in Islamic finance: towards achieving Saudi Arabia Vision 2030

PurposeConventional insurance creates a gap in the financial system across the world that manifests from the global financial and economic crisis. There is an increasing demand for insurance schemes that will bridge the gap of financial and economic crisis globally. More recently, there is an advocacy in Saudi Arabia for achieving Vision 2030 by various facets of human endeavours such as strengthening financial markets and boasting economic development. The purpose of this paper is to deeply explore policy and reinforcement of the legal framework of Islamic insurance as essential bedrocks in Islamic finance that are Shari’ah compliant to achieve Saudi Vision 2030 for overall sustainability of all spheres of human endeavours in the country.Design/methodology/approachContent analysis and systematic literature review are used as methodological approaches in this paper. There are various sources of accessing secondary data used in this study such as online peer review, journals and library-based sources. Through the exploration of various secondary data, five major themes were identified in this study, namely, policy, legal framework, Islamic insurance, Islamic finance and Saudi Vision 2030. Analysis of various themes were done systematically in this paper. The methodology provides theoretical and practical foundations for reinforcing policy and legal framework for Islamic insurance, specifically in Islamic finance to achieve Vision 2030 in Saudi Arabia. It is the policy and legal framework that can provide necessary dynamics for strengthening Islamic insurance in particular and Islamic finance in general towards attaining sustainable Vision 2030 in the country.FindingsThe paper demonstrated that policy period is explicitly associated with Islamic insurance, whereby Takaful insurance is regarded as policyholder rather than shareholder-oriented. Similarly, it is established that there is need to specifically mention the policy period and the nature of contract in Islamic insurance should not be limited to only mutual cooperation among the participants in connection with the losses but it should capture element of sharing income generated from investment between insurer and policyholders using predetermined ratio for such as provided with theoretical legal framework (Shari’ah) in connection with Islamic insurance model as an integral part of Islamic finance.Research limitations/implicationsIt will depart completely from conventional insurance where borrowing of funds and investment are put at fixed interest (Riba), uncertainty (Gharar) and speculative ideas (Maisir). Avoidance of different elements ascribed with conventional insurance would enable Saudi Arabia to strengthen financial system and boast economic development with an emphasis on an effective policy and efficient legal framework towards attaining Vision 2030 in the country.Practical implicationsThe methodology provides theoretical and practical foundations for reinforcing policy and legal framework for Islamic insurance, specifically in Islamic finance to achieve Vision 2030 in Saudi Arabia.Social implicationsConventional insurance creates a gap in financial system across the world that manifests from the global financial and economic crisis. There is an increasing demand for insurance scheme that will bridge the gap of financial and economic crisis globally. More recently, there is an advocacy in Saudi Arabia for achieving Vision 2030 by various facets of human endeavours such as strengthening financial market and boasting economic development.Originality/valueWith this emphasis, it will depart completely from conventional insurance where borrowing of funds and investment are put at fixed interest (Riba), uncertainty (Gharar) and speculative ideas (Maisir). Avoidance of different elements ascribed with conventional insurance would enable Saudi Arabia to strengthen financial system and boast economic development with an emphasis on an effective policy and efficient legal framework towards attaining Vision 2030 in the country.

Chuyển đổi số: Xu thế phát triển tất yếu của Kho bạc Nhà nước Việt Nam

The comprehensive renewal, improvement, and modernization of the national financial system are urgently needed. The State Treasury, with its assigned functions and duties, plays a positive role in promoting the sustainable development of the national financial system and ensuring the resources for the state to maintain socio-economic development. This reality calls for specific and effective solutions to achieve the goals of the digital State Treasury. This is also a prerequysite to ensure the implementation of the e-government goals, which serve as the foundation for the national digital transformation strategy. The article aims to study the theoretical basis of the digital State Treasury, including crucial content regarding the overall architecture of the digital State Treasury model, the conditions for the formation of the digital State Treasury, the initial digital transformation results of the State Treasury of Vietnam, and some recommendations for the development of the digital State Treasury.

Konsep Manajemen Risiko

The development of the world financial system has led to the increasing importance of the role of professional financial institution management. Financial institutions are institutions that manage financial resources from other parties to be used for more productive activities. Advances in technology, information systems, and market openness at a wider level, for example at the global level, require financial institutions to be more careful in managing their business so as not to fall into losses that can involve many parties. This potential loss can arise from an institution's failure to manage the risks it faces, both financial risk, business risk and systemic risk. Therefore, proper risk management for a financial institution is a must.

Pengaruh Literasi Keuangan Syariah Terhadap Keputusan Pemilihan Produk Simpanan BMT Rukun Abadi (Studi Kasus Anggota Koperasi BMT Rukun Abadi)

This study aims to investigate the Effect of Sharia Financial Literacy on the Decision to Choose BMT Rukun Abadi Saving Products. This case study focuses on members of BMT Rukun Abadi Cooperative, which is a sharia-based financial institution in Indonesia. Islamic financial literacy is an important factor in encouraging the growth and development of the Islamic financial system. The research method used is a quantitative approach by distributing questionnaires to members of the BMT Rukun Abadi Cooperative. This questionnaire was designed to measure the level of Islamic financial literacy of the members as well as evaluate the decision patterns for choosing deposit products at BMT Rukun Abadi. The results showed that Islamic financial literacy has a significant influence on the decision to choose deposit products at BMT Rukun Abadi. Members of BMT Rukun Abadi Cooperative who have a higher level of Islamic financial literacy tend to be better able to understand the characteristics and benefits of Islamic savings products, so they can make more informed and effective decisions. These findings provide important implications for BMT Rukun Abadi in improving Islamic financial literacy services and education to its members. By improving Islamic financial literacy, members will be more engaged and involved in utilizing the Islamic savings products offered by this financial institution, thus supporting the growth and sustainability of the Islamic financial system in Indonesia.

Importance of Electronic Accounting Information Systems in Improving Financial Information Security in Jordanian Electronic Payment and Money Transfer Companies

Purpose: The study aimed to assess the level of effectiveness of electronic accounting information systems in enhancing the security and control of financial information in Jordanian payment and electronic transfer companies and its ability to provide reliability. And analyzing the ability of the system used in the payment and financial transfer companies to meet the operational requirements imposed by the regulators of the sector. Theoretical framework: The theoretical framework dealt with the topics of the study from the security threats of electronic accounting information systems (Jacob, 2012: 67) and the risks of accounting information systems that are related to electronic payment systems, especially information security (Al-Maghribi, 2017). Accounting in reducing the risks of transactions, and the obstacles facing accounting systems in the face of the risks and threats of electronic systems Design/Methodology/Approach: The researcher used the inductive approach by referring to the literature related to the subjects of the study and the deductive approach in the field study by distributing a questionnaire to the electronic payment companies in Jordan. 96 questionnaires were retrieved. Using the spss program to analyze the data and reach the results Findings: The study Fined that there are factors that help to penetrate the accounting information systems in the Jordanian electronic payment and financial transfer companies. Network communication. Electronic accounting information in enhancing the security of financial information and control over it, and there are (obstacles) in providing security requirements and information control, in electronic payment and financial transfer companies related to the rapid development of electronic financial systems and electronic payment methods and their development. Research, practical & social implications: This study is considered one of the important and modern topics because electronic payment processes are considered one of the modern concepts with which many risks are associated. This study sheds light on these risks and threats and the ability of the strong accounting system to confront these threats and risks.. Originality/Value: The results indicate the importance of the topic and the importance of conducting a study on the risks of electronic payment systems, the threats facing the use of electronic payment methods and the obstacles facing accounting information systems in one of the newly established economic sectors in Jordan, which is the electronic payment companies.

Analysis of Rahn Law an Islamic Economic Perspective

The development of the Islamic financial system gave rise to Islamic financial institutions, one of whose products is pawnshops. Pawnshops in sharia are known as Rahn which means pawn. Rahn or Pawn is a binding agreement between the creditor and the debtor in a loan and loan transaction by placing collateral on the debt. The purpose of this article is for the Analysis of the Implementation of rahn Law (pawn) in an islamic economic perspective. The method used using a skinative model with an Islamic economic approach and the analysis used is descriptive analysis. The study results show that rahn is allowed in Islamic teachings, its development has also become increasingly prevalent. Rahn is used as an economic support for people in need. The rahn law has also been allowed by islamic clerics and fatwas. However, its activities must be by the conditions, harmony and applicable policies.

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.