Financial Regulation Research Articles

Impact of internal audit on financial management with reference to college of education Oju, Benue State, Nigeria

This study investigates the impact of internal audit systems on key financial variables at the College of Education Oju, Nigeria, specifically focusing on accountability and prudence, compliance with financial regulations, and revenue and expenditure control. The study employs a descriptive survey design, using a total population of 54, with 51 valid responses. A structured questionnaire was used as the primary data collection instrument, and the data were analyzed using linear regression analysis. The study found a significant positive relationship between internal audit and accountability and prudence, compliance with financial regulations, and revenue and expenditure control. Moreover, the effects were ranked as follows: accountability and prudence ranked first, demonstrating the strongest impact, followed by compliance with financial regulations, and lastly, revenue and expenditure control, which showed the weakest effect. These results highlight the crucial role of internal audits in enhancing financial governance, ensuring regulatory compliance, and improving resource management. Based on these findings, the study recommends implementing audit software for real-time tracking, collaborating with external oversight bodies and regular training of auditors, these actions are expected to enhance financial transparency, reduce mismanagement, and improve the overall financial performance of the institution.

The evolution of financial regulation and the role of the monetary authority of Singapore: a historical analysis based on organizational knowledge creation theory

ABSTRACT This study explores the historical development of Singapore as an international financial center and the pivotal role played by the Monetary Authority of Singapore (MAS) in promoting financial liberalization and strengthening financial regulation and supervision. It focuses on two significant reforms within MAS, led by different chairpersons. The first reform, initiated by Goh Keng Swee in 1981, emphasized enhancing regulatory frameworks and supervision. The second reform, led by Lee Hsien Loong in 1998, sought to balance regulatory oversight with financial liberalization. This study adopts a dynamic theory of organizational knowledge creation (OKCT) to analyze the mechanism of human capital accumulation within MAS. Specifically, it addresses three research questions about forming specialized reform teams, developing reform ideas, and disseminating new visions to financial supervisors. Utilizing resources such as MAS’s 40-year history book, Annual Reports, and Executive Oral History Materials, this study demonstrates the effectiveness of OKCT in understanding MAS’s adaptive approach to regulatory challenges and its strategic development as a leading international financial center.

The impact of firm size on the relationship between leverage and firm performance: evidence from Saudi Arabia

Capital structure and its relationship with firm performance is one of the most debatable topics in corporate finance among both scholars and policy-makers. Using a panel threshold regression model, this study investigates the impact of firm size on the nonlinear relationship between the leverage and performance of Saudi listed firms from 2010 to 2019. The results reveal that firm size is critical in determining the nonlinear relationship between leverage and firm performance. A single threshold level divides the sample into two regimes of small and large firms. Leverage negatively affects performance in both regimes with different debt maturities. However, the negative impact is more pronounced among small firms, especially when long-term debt is employed. This study adds to the evolving literature because the unique setting of the Saudi market is characterized by its illiquid and underdeveloped bond market. Additionally, Saudi firms are not subject to income tax; instead, they are subject to zakat, which is levied at 2.5%. These characteristics impact the relationship between leverage and Saudi firm performance at different firm sizes. This study is important for financial managers, regulators, researchers, and investors to understand how leverage with different maturities affects performance and the role of firm size in this relationship.

Green banking awareness and its association with green attitude, green trust, and green loyalty

ABSTRACT The lack of consumer awareness regarding Green Banking Practices (GBP) poses a challenge for banks aiming to benefit from them and for sustainable development. This paper developed a scale for exploring the Green Banking Awareness (GBA) among Brazilian highly educated consumers and its association with Green Attitude (GA), Green Trust (GT), and Green Loyalty (GL). 414 participants answered an online survey. Descriptive analyses, principal component analysis, and structural equation modelling approaches were used to verify the item's structure and the relationship between variables. Although the respondents agree that they are environmentally conscious, most did not recognize the GBP in their banks. We observed that GA did not significantly correlate with GL and GT, but GBA significantly correlated with GT and GL. Also, GA was associated with education. Our results might help the bank industry, the finance regulators, and governments to better understand GBA and act to increase it.

Legal regulation of scientific and technical cooperation of the Russian Federation and the member states of the CIS and EAEU in the fuel and energy sectors on problems of rational use of nature, ecology and environmental protection

Issues of legal regulation in order to ensure environmental safety, rational use of natural resources, and their protection are relevant for the Russian Federation and the member states of the Eurasian Economic Union (EAEU). FEC organizations carry out economic activities that have a direct impact on the environment. Legal regulation in the field of environmental management, the establishment of appropriate standards, environmental requirements for business activities, and the establishment of financial regulators contribute to the preservation of the environment. Issues of legal regulation in connection with the Paris Climate Agreement are of particular relevance in modern socio-economic conditions. The CIS states and the EAEU have historically established economic ties in the fuel and energy sector, and common energy markets are currently being formed. In this regard, there is a need to adopt new legislative decisions in the field of rational use of natural resources, ensuring safety and maintaining the environment in proper condition. In particular, joint solutions are needed on climate issues and economic decarbonization. In this study, the goal was to substantiate proposals for the development of certain areas of legal regulation in the area of public relations under consideration. In this regard, an analysis of national legislation was carried out, as well as interstate agreements, decisions, review documents, model laws of the CIS, international agreements and conventions were collected and analyzed. Based on the analysis, a proposal was formulated on the possibility (subject to the interest of all participants) of developing and adopting an inter-integration agreement (between the CIS and EAEU associations) in the field of activity of fuel and energy complex organizations in order to solve environmental problems, as well as climate ones. Such an agreement would allow the EAEU member states to use the existing legal potential of the CIS countries, in particular, model legislation, and would also help resolve issues of financing joint projects in the field of scientific and technical cooperation. The possibility of developing at the level of national legislation criteria for compliance with the requirements of environmental legislation and introducing compliance programs at the level of fuel and energy complex organizations (programs for compliance with the requirements of legislation on the rational use of natural resources and ensuring environmental safety) is also justified.

Taming the Cycles of Finance? Central Banks and the Macro-Prudential Shift in Financial Regulation

Taming the Cycles of Finance? Central Banks and the Macro-Prudential Shift in Financial Regulation

RegTech advancements-a comprehensive review of its evolution, challenges, and implications for financial regulation and compliance

Purpose This study aims to assess the current state and impact of the RegTech industry on financial regulation and compliance by providing a comprehensive overview of its evolution and identifying key challenges and opportunities. Design/methodology/approach A hybrid review approach was employed, involving a detailed bibliometric analysis of 89 scholarly articles and a content analysis of 47 key studies, covering the period from 2010 to 2023. Findings The research identifies critical trends and challenges within the RegTech industry, focusing on the roles of regulatory bodies and technological innovations. It explores four major themes: (1) RegTech applications in FinTech, financial services and banking regulations; (2) RegTech’s role in compliance management and fraud prevention; (3) the impact of digital transformation, governance and regulations; and (4) the integration of Big Data, AI, ML and blockchain in regulatory systems. Practical implications This study provides a comprehensive framework for understanding the complicated applications of RegTech, highlighting its potential to enhance compliance efficiency, mitigate risks and foster innovation within the financial sector. The insights provided are valuable for policymakers and financial institutions aiming to develop more robust regulatory frameworks and practices. Originality/value This study uniquely integrates bibliometric and content analysis to provide an up-to-date and nuanced overview of RegTech, focusing on recent advancements in AI, ML and blockchain technologies. It not only maps current trends but also identifies research gaps and offers new directions for future research.

The Spillover Effect of US Monetary Policy: A Literature Review

In an era of globalization, the interconnectedness of financial markets means that monetary policy decisions in one country, particularly the United States, can have significant global repercussions. This interconnectedness necessitates a deeper understanding of how US monetary policy influences economic conditions worldwide. This paper reviews the impact of US monetary policy through various channels on advanced and emerging countries differently. The research finds that US monetary policy involves an element of uncertainty. In advanced countries, this uncertainty primarily influences the term premium component of yields, whereas in emerging countries, it affects the expected component of yields. Furthermore, the impact of US monetary policy shocks varies with the business cycle, having a larger effect when growth is weak outside the US. Different channels of spillover include interest rate differentials, exchange rate movements, capital flows, financial market reactions, and changes in risk perception and sentiment. For advanced countries, significant impacts are seen in interest rate spillovers, exchange rate dynamics, financial market volatility, and global trade and economic growth. In emerging countries, the effects are pronounced in exchange rate channels, capital flows, financial stability, term premium, risk perception, and local monetary conditions. Solutions include strengthening financial regulation, diversifying economic structures, building foreign exchange reserves, managing capital flows, improving monetary policy frameworks, fostering regional cooperation, promoting long-term investment, and enhancing data transparency.

Investor sentiment and Euro area ETFs: an empirical analysis of consumer behaviour

The goal of this article is to study the relationship between investor sentiment and Euro area Exchange Traded Funds (ETFs), providing insights into the dynamics of market behaviour and the impact of consumer behaviour on investment patterns within the Eurozone. This paper has employed panel data analysis, correlation analysis, regression analysis, and the Granger causality test to investigate the relationship between ETFs and the consumer confidence index (CCI). Results suggest that CCI significantly negatively affects ETF pricing. While a weak positive correlation and regression relationship between iShares MSCI Eurozone ETF prices and CCI 19 Euro area markets have been found, the Granger causality test did not provide evidence of a causal relationship between the two variables. Other factors, such as financial stability, government regulations, and market-specific factors, may also affect ETF prices. The study concludes that, while CCI may be important, it should not be the only factor considered.

Managing and resourcing Nigerian banks’ diasporic operations in the UK: An empirical study

This study explores the objectives and operations of the diasporic operations of Nigerian banks in the UK. Its aim is to understand why such banks choose to establish a presence in the UK, how they structure themselves, and how they meet the UK’s regulatory standards. By employing a mixed-method approach – a combination of survey data and semi-structured interviews – this research examines the reasons underlying Nigerian banks’ engagement in diaspora banking, their human resources strategies, and the manifestation of their organisational culture within the UK context. The findings illustrate that Nigerian banks utilise either the subsidiary model or the branch model to cater to the financial needs of Nigerian diaspora communities, facilitate international transactions, and support international investment in Nigeria and Africa more broadly. The usually staffing strategy applied involves a mixture of UK-based employees and Nigerian staff seconded from the banks; headquarters in Nigeria, which ensures that the bank are able to adhere to both UK financial regulations and Nigerian compliance standards. The study’s originality lies in its novel contribution to the operational activities of diaspora banking in the UK.

Carbon Capture Storage dalam Pengelolaan Barang Milik Negara

Climate change has gained prominence following the 2015 Paris Agreement, which aims to limit global temperature rise to below 2 degrees Celsius, with efforts to keep it under 1.5 degrees Celsius. This agreement stresses the importance of collective action to reduce greenhouse gas emissions and build resilience against climate impacts. In June 2023, the global average surface temperature reached a record high, with subsequent months also setting heat records. Mitigating global warming's adverse effects, such as rising temperatures and extreme weather changes, requires significant reductions in greenhouse gas emissions. Efforts in the energy sector have led to a decrease in CO2 emissions from 40.6 million tons in 2018 to 127.67 million tons in 2023. These efforts include enhancing energy efficiency, transitioning to renewable energy, and implementing carbon capture and storage (CCS) technologies In Indonesia, CCS regulations are outlined in Minister of Energy and Mineral Resources Regulation No. 2 of 2023. CCS involves the capture, transport, injection, and permanent storage of carbon emissions. The management of state-owned assets related to CCS falls under the Ministry of Finance Regulation No. 140/PMK.06/2020, which addresses the transfer, utilization, and valuation of upstream oil and gas assets. This paper discusses the role of state asset management in the implementation of CCS in Indonesia, examining current regulations, challenges, and future prospects.

How does macroprudential policy affect the relationship between financial openness and bank risk-taking

This paper investigates how macroprudential policy affects the relationship between financial openness and bank risk-taking by utilizing Chinese commercial banking data from 2005 to 2021. We find that financial openness generally promotes bank risk-taking. Robustness checks consistently support this finding, including variable substitutions, sample period adjustments, controlling for other shocks, and endogeneity concerns. The impact of financial openness on risk-taking demonstrates potential heterogeneity, contingent upon factors such as bank financing constraints, risk management, and financial regulation. We delineate credit, interest rate, and asset price channels through which financial openness affects bank risk-taking, notably by amplifying bank credit volumes, diminishing credit asset ratios, compressing net interest margins and spreads, and elevating asset prices. Macroprudential policies are identified as effective countermeasures against the heightened bank risk-taking associated with financial openness, with the effectiveness of these policies varying by the specific regulatory instruments.

Renewable Energy Communities in Rural Areas: A Comprehensive Overview of Current Development, Challenges, and Emerging Trends

Achieving environmental and economic stability amid climate change requires renewable energy technologies. This review analyses 86 articles on rural energy communities, highlighting key technological, economic, and social drivers of their growth and sustainability. Findings show that rural energy development (38%), community engagement (36%), and agricultural integration (26%) are key focus areas, supported by drivers like technological innovation, regulatory frameworks, and community participation. Emerging trends reveal a shift from localised solutions to integrated hybrid systems and smart grids across three stages (2004–2024). Cross-country comparisons indicate varied regional priorities, with environmental benefits emphasised in China, Thailand, and Italy, and economic gains in the U.S., Poland, and India. Main challenges include financial constraints (21%), infrastructure (35%), regulation (44%), and participation (52%). Core elements for development are resilience, scalability, and innovation, with strong correlations (R2>0.80) between resilience, economic benefits, and social engagement. This review underscores the need for innovation, policy support, and community involvement to foster resilient, scalable rural energy communities, promoting sustainability and energy security.

Between progress and caution: LegalTech's promise in transforming personal credit risk management in China

The integration of LegalTech in China's financial and legal sectors offers useful insights for innovative legal practices, financial regulation and judicial reform. This article examines how LegalTech transforms personal credit risk management in China, analyzing its integration within banking compliance systems and judicial processes. It explores three key dimensions: the evolution of debt collection practices through technological innovation, the enhancement of public remedies through automated judicial systems, and the development of legal frameworks to legitimize LegalTech solutions. While highlighting LegalTech's potential to improve efficiency in credit risk resolution, the article addresses critical challenges including moral hazard in automated systems and the preservation of judicial discretion in technological implementation.

Study on the Development and Regulation of Internet Finance

With the rapid development of the network financial industry, the continuous promotion of innovation has greatly contributed to the rapid development of society and economy. With the rapid development of network finance, China's financial regulations and regulatory system is not perfect enough, resulting in financial security and stability problems. The soundness of the legal and regulatory system of network finance will help promote the healthy development of network finance.

Automation in financial reporting: A conceptual framework for efficiency and accuracy in U.S. corporations

This paper reviews the role of automation in financial reporting within U.S. corporations, focusing on how advanced technologies such as artificial intelligence (AI), robotic process automation (RPA), and cloud-based systems are transforming traditional financial processes. By automating routine tasks, these technologies offer significant improvements in efficiency, accuracy, and scalability. The paper highlights key challenges, including system integration, data security, and regulatory compliance, while also discussing strategies for successful implementation, such as establishing strong technological infrastructures, ensuring data integrity, and fostering organizational readiness. Best practices for maximizing the benefits of automation are explored, emphasizing the need for continuous improvement and alignment with business objectives. Recommendations are provided for corporations looking to adopt or enhance automation in financial reporting, with a focus on strategic planning, employee training, and maintaining compliance with financial regulations.

Strong financial regulation and the intelligent transformation of enterprises

Artificial intelligence, as a strategic technology leading the future, has emerged as a key field where nations worldwide are actively vying for leadership. In 2018, China issued new asset management regulations, which had a significant impact on the intelligent transformation of enterprises. However, there are no scholars to carry out research. In order to fill this gap, this paper is based on the natural experiment of China's the new asset management regulation released in 2018, this paper analyzes the impact of strong financial regulation on enterprise AI. The primary contribution of this paper is the establishment of a new mathematical model for stringent financial supervision and the deduction that new regulations guide funds by targeting shadow banking, curbing corporate financialization, alleviating financing constraints, and optimizing resource allocation, thereby fostering the intelligent transformation of enterprises. Addressed the shortcomings in existing quantitative research. Finally, further analysis reveals that this positive effect is mainly reflected in state-owned enterprises, high-tech enterprises, private financial development degree is higher, and relatively developed eastern regions and large urban agglomeration areas. This study provides micro evidence for the intelligent effect of financial strong regulation, and provides important policy enlightenment for further releasing the dividends of financial regulation system reform and promoting the high-quality development of real economy.

The impact of online media on corporate green innovation: The moderating role of financial regulation

This study explores the relationship between online media and corporate green innovation, with financial regulation serving as a moderating factor. Utilizing a sample of 3,329 Chinese-listed manufacturing companies spanning from 2011 to 2022, we employed a combination of regression analysis and mediation testing to investigate our hypotheses. The results reveal that online media exposure significantly stimulates corporate green innovation, and investor attention positively influences this process. Furthermore, research and development investment acts as a mediator, amplifying online media's promotional effect on corporate green innovation. Importantly, our findings indicate that strengthened financial regulation fosters a robust positive correlation between online media and corporate green innovation. In conclusion, this study highlights the crucial role of online media, investor attention, R&D investment, and financial regulation in driving corporate green innovation, offering insights for policymakers and practitioners aiming to promote sustainable development.

Optimizing Financial Transparency and Accountability in Mosques: A Case Study Approach in Enhancing Reporting Practices

Financial reporting is essential for maintaining accountability and openness in non-profit organizations, including mosques. Notwithstanding the existence of worldwide financial reporting standards, mosques frequently have difficulties in conforming to standard practices owing to insufficient competence and the absence of established financial management frameworks. This case study analyses the financial reporting practices of a mosque in Malaysia, emphasizing critical issues such as the absence of standardized financial recording systems, procrastinated transaction paperwork, and restricted public financial disclosures. The study highlights the necessity for explicit financial separation between waqf and khairat monies, as each serves a unique function. It underscores the significance of streamlined financial recording methods to enhance openness, accountability, and community confidence. This research identifies essential areas for enhancement by comparing current behaviors with instructions provided by Malaysian religious authorities. Recommendations encompass the establishment of fundamental financial recording systems, the utilization of technology for real-time reporting, and enhanced adherence to financial regulations. The study adds to the expanding literature on financial accountability within religious non-profits and provides pragmatic suggestions for improving financial management in mosques. By using these methods, mosques can cultivate enhanced confidence between congregants and regulatory authorities, while assuring the appropriate management of donations and resources.

Securing Real-Time Payment Systems: Challenges and Solutions for Network Security in Banking

Modern banking infrastructure relies heavily on real-time payment technologies, which have revolutionized how financial institutions handle transactions worldwide. This in-depth article examines the operational needs, security procedures, and technical difficulties of setting up and managing real-time payment networks. The article examines advanced fraud prevention techniques, such as rule-based systems and machine learning applications, while examining the crucial trade-off between transaction speed and security. This article illustrates the development of payment infrastructure and security measures through in-depth case studies of European and Asian payment networks. To help financial institutions, regulators, and technology suppliers navigate this quickly changing industry, the essay delves deeper into new technologies, regulatory factors, and upcoming advancements influencing the real-time payments market.