Financial Sector Research Articles

Impact of Artificial Intelligence on Employee Satisfaction

Employee satisfaction and engagement can lead to multiple positive impacts in an organization, as the AI is becoming more and more popular in today’s world, it is the only one of the viable option for the companies to deploy Artificial intelligence-based services in their organization. AI based chatbots, ticketing issues, conversational AI, etc. can help in increasing the productivity level and job happiness for the employees by many folds. This research paper aims to find the impact of artificial intelligence on employee satisfaction majorly in 2 sectors IT and Banking & Finance. Research is based on descriptive as well as Explorative and gathers the data through survey from over 236 employees from both the sectors and then the collected data has been used for further analysis correlation between the variables included for the analysis and the regression test along with the reliability test. Keywords- Artificial intelligence, employee satisfaction, IT, Banking & Finance sector, Job happiness and chatbots

A Bayesian vector-autoregressive application with time-varying parameters on the monetary shocks–production network nexus

ABSTRACT Transmission channels from monetary shocks might be identified by studying the features of the production network. The main aim of this paper is to provide insights about the role of production network into the propagation of monetary policy shocks in G7 economies. Time-varying Bayesian vector-autoregressions were built to compute impulse response functions of output to monetary policy shocks in these countries. Panel Auto-Regressive Distributed Lag Bound Approach based on Mean-Group estimator was used to assess the long and short-run connections between production network structure and various shocks associated to monetary policy in the period 2000–2018 and during the Great Recession (2007–2009). The results show that upstreamness is more significant than downstremness in the period 2000–2018, while the financial sector significantly contributed to the spread of various monetary shocks during the Great Recession.

Developing green finance in Vietnam towards sustainability

Green finance is a global trend involving international financial institutions, governments, and the financial systems of individual countries and regions. The term "green finance" refers to the synchronized development of the financial sector while improving the environment and fostering economic growth. Its goal is to mobilize financial resources to benefit the environment while minimizing harm and managing environmental risks. Green finance is becoming increasingly crucial for Vietnam, especially with its commitment to net-zero emissions by 2050 and reducing methane emissions by 2030. Consequently, investment demand for projects that mitigate environmental impacts will grow, making green finance vital for Vietnam's sustainable development goals. A green or clean economy aims to harmonize economic growth with ecological sustainability. Its fundamental growth strategy includes environmental protection, clean production technology, and clean energy, rapidly achieving sustainable growth. However, raising awareness about green finance for sustainable development and identifying opportunities and challenges in its application in Vietnam is essential. Keywords: Green Finance, Vietnam, Sustainable Development

Block Chain-Powered Cloud Data Integrity Verification System with Excellent Effectiveness

The "next-generation financial technology," or blockchain, is praised for its peer authentication security features, which include virtual money, data encryption, and hash value creation. Cloud computing is widely used due to its efficiency, and the global financial sector sees a vast market for security. Blockchain technology is examined in this article along with its developments and application to cloud computing in healthcare and electronic vehicle security. Verification, oversight, and dependable data storage are made possible by the virtual machine agent mechanism, which is crucial for maintaining blockchain integrity. The Merkel hash tree's unique hash values are used by blockchain smart contracts to keep track of data modifications. Users are notified of data manipulation through a "block-and-response" procedure. Data security and trustworthy computing are still issues in spite of the growth of cloud computing. Different approaches, such as data integrity tests and secure multi-party computations, have been proposed by researchers; however, these frequently encounter problems related to complexity and scalability. This paper investigates the ways in which blockchain technology can help with these issues by providing a decentralized method for improving cloud computing security and storage. Keywords— Blockchain, money, security, cloud service, technology, big-data, data, healthcare ;

THE IMPACT OF WAR ON THE INSURANCE MARKET OF UKRAINE: ANALYSIS OF OBSTACLES AND RESTRUCTURING OF THE FINANCIAL LANDSCAPE

The purpose. The aim is to analyze the condition, structure, and dynamics of the financial sector of Ukraine, identifying key trends. It also involves determining the major problems and growth opportunities for the financial sector as a significant factor affecting the national economy. Method. The study is based on the examination of statistical and empirical data from the National Bank of Ukraine, as well as the analysis of changes in regulatory acts governing financial services. Additionally, the author reviewed expert opinions on market issues related to specific entities. Using a comprehensive approach, the author was able to formulate general trends characteristic of the market as a whole. The results. This research presents the impact of martial law on the structure and dynamics of the financial sector in Ukraine, analyzes the causes of these changes, and identifies factors influencing the financial sector of Ukraine. Scientific novelty. The scientific novelty of the article lies in exploring the relationship between military-political factors and the transformation of Ukraine's financial sector. The proposed study highlights the unique experience of the impact of military-political factors on the country’s financial system, which is relevant and significant for further research and practical applications. Practical significance. The practical significance of this article is that the research results will provide analytical information to financial institutions regarding the needs and opportunities for adapting to military-political risks. This will enable them to develop more effective risk management strategies and maintain stability in conflict conditions. Studying the impact of military-political factors on the stability of Ukraine's financial system can help identify key risks and ways to strengthen the resilience of financial institutions and national infrastructure.

The Effect of Exchange Rate Volatility on Foreign Tourist Visits in Indonesia: GARCH Analysis

In this era of globalization, currency exchange rates are one of the crucial factors affecting a country's economy. The exchange rate of a country's currency plays an important role in economic stability and international trade, especially in the tourism sector. This study aims to conduct an in-depth analysis to identify patterns of rupiah exchange rate volatility using the Generalized Autoregressive Conditional Heteroscedasticity (GARCH) model, and then examine whether these patterns have a significant correlation with the number of foreign tourist arrivals in Indonesia. In analyzing the data, researchers conducted several classical assumption tests, namely the normality test and the heteroscedasticity test. The test results show that the data used, namely the rupiah exchange rate data and the number of foreign tourist visits, are not normally distributed and heteroscedastic. In this case, it resulted in researchers not use the Pearson correlation test so they used the Kendall-Tau correlation test and Granger Causality test which resulted in the two variables being correlated. Furthermore, GARCH modeling is carried out which provides forecasting on both data to increase in 2024. The results of this study are expected to provide a basis for consideration for stakeholders to determine policies, especially in the financial and tourism sectors.

Investigating the Effectiveness of Cultural Change in Improving Financial Sector Performance

The significance of cultural change in improving financial performance has become widely acknowledged. To determining how cultural changes affect performance is critical in the financial industry, where quick changes in regulations and technology are typical. Even with the increased interest, there is still lack of empirical data connecting cultural shifts to the success of the financial industry. The study goal is to evaluate the efficacy of cultural change initiatives in improving financial sector performance, to identify specific cultural elements that significantly impact organizational efficiency, employee satisfaction, and overall financial outcomes. Study involved data from 500 institutions is categorized into two groups based on with and without cultural change significant. Statistical methods including T-test, chi-square test and regression analysis are employs to evaluate differences in financial metrics. Results show that institutions with cultural changes experience better financial performance, higher revenue growth, and improved employee engagement compared to those without. The study concludes importance of cultural change in enhancing financial sector performance and provides practical insights for financial institutions to optimize the organizational culture.

Non-legal forms of financial activity in the context of the development of the concept of a “service state”

Taking into account the development of the concept of the “service state”, it is proposed to analyze the possibility of defining illegal forms of financial activity of the state. Foreign and domestic science consider the organizational activities of the state by building client relations between the state and society using various information technologies that allow providing state and municipal services. In this regard, it is appropriate to talk about the services provided related to the financial sector. The author concludes that: a) although the legal forms of financial activity of the state are predominant, nevertheless, non-legal forms are developing in the context of digitalization of public administration; b) non-legal forms of financial activity of the state should include: the portal of public services of the Russian Federation; a unified information system in the field of procurement; personal account of the taxpayer; unified portal of the budget system of the Russian Federation “Electronic budget”.

Main trends in the development of financial law as a public law branch

The article analyzes the tendency to expand the subject of financial and legal regulation in modern conditions, which is due to objective reasons, which, in particular, include the increase and complication of relationships between subjects, informatization of the financial sector, all areas of financial activity, the emergence of new types of social relations, which objectively need to be regulated by financial law and which include the formation of decentralized non-state monetary funds, but intended to ensure public interests. The emergence of new groups of relations in areas not previously regulated by financial law, in particular in the financial market, which in modern conditions are also becoming the subject of public law, including financial, regulation. The changes taking place are also associated with new characteristics of the method of financial law. Emerging new financial relations are objectively included in the functioning of the financial system of society, which in turn influences the construction of the system of financial law, its complication, characterized by the emergence of not only new institutions, but also sub-sectors of financial law.

Dynamic spillovers of green, brown, and financial industries under the low-carbon transition: Evidence from China

Climate change has garnered significant global attention, with uncertainty surrounding the economic consequences of the transition to low-carbon emissions posing potential risks to financial markets. To assess the heterogeneous effects of this transition on financial markets, 22 carbon-sensitive industries in the Chinese market, classified into brown, green, and financial sectors, are analyzed by using the LASSO-VAR-DY model and complex network analysis. The results reveal that spillovers have changed over different stage and gradually shifted from intra-sector spillovers to more complex inter-sector spillovers. Particularly noteworthy is that this inter-sector spillover effect is especially pronounced among industries with close production linkages. Besides, the brown sector consistently acts as a spillover sender, while the financial sector becomes closely interconnected, albeit at a greater risk from the brown sector than from the green sector. These findings highlight the need to consider the spillover effects for maintaining financial stability and constructing investment portfolios.

Uniqueness over Size for International Growth in the Financial Sector: An Interview with AIB 2024 International Executive of the Year Hyeon Joo Park

Uniqueness over Size for International Growth in the Financial Sector: An Interview with AIB 2024 International Executive of the Year Hyeon Joo Park

CBDC and banking stability: Modeling cascading effects on reserves, lending, and liquidity

This research uses a dynamic modelling approach to design and simulate an equilibrium model of the interaction between CBDC issuance, deposits and bank reserves. With many central banks announcing their intention to issue central bank digital currencies (CBDCs), it has become imperative to rigorously analyse the potential impact of these issues on the banking system. This study aims to examine the implications of the introduction of CBDCs within a robust analytical framework, in order to inform policymakers and financial sector players about the possible consequences of this major monetary innovation. The study results show that overconfidence of economic agents towards CBDCs can drastically reduce bank reserves, thereby limiting the lending capacity of banks and creating liquidity problems. Similarly, increasing reserve requirements in fiat currency for each unit of CBDC issued can constrain bank reserves and restrict loans and deposits. Additionally, a rise in interest rates on CBDC-related loans can discourage borrowers, thereby reducing loan demand and affecting banking activity. An increase in interest rates leads to a decrease in the quantity of CBDC in circulation, an increase in bank reserves and deposits in CBDC, and a decrease in bank loans. Monitoring the level of confidence of economic agents towards CBDCs is crucial to avoid excessive speculation.

A Time Series Study of Financial Sector Development and Original Sin in Nigeria

This study examined financial sector development and original sin in Nigeria financial market. Time series data was sourced from Central Bank of Nigeria Statistical Bulletin from 1990-2023. Original sin measured by Nigeria external debt per exchange rate, Capital market development as market capitalization to gross domestic product, Foreign exchange market as variation in naira exchange rate per US Dollar, banking sector development as percentage total bank assets to gross domestic product, money market development as insurance total assets to gross domestic product, Money market development as value of money market instrument to gross domestic product. The study employed descriptive statistics and multiple regression models to estimate the relationship that exists between the dependent and independent variables. The null Hypotheses (H0) were tested at 0.05 level of significance, Ordinary Least Square (OLS), Augmented Dickey Fuller Test, Johansen Co-integration test, normalized co-integrating equations and parsimonious vector error correction model were used to conduct the investigations and analysis. The study found that 57.0% variation on original sin can be traced and explained by variation on the independent variables as formulated in the regression model. However, the F-Statistics and the F-probability justifies that the model is significant and adequate in explaining variation on the dependent variable. The β coefficient shows that capital market development have negative effect on original sin, foreign exchange market have positive effect on original sin, banking sector development have negative effect on original sin, insurance sector development and money market development have positive effect on original sin. From the findings, the study concludes that the independent variables determine positively and negatively original sin in Nigeria. We recommend that the need for policies to deepen the capital market as this can cushion the effect of the negative effect of external borrowing and domiciled in Nigeria currency rather than international currency. There should be institutionalized policies to enhance the value of the naira against other international currencies as this can reduce the pressure of exchange rate variation in international debt and international monetary environment. Public expenditure should be directed to the productive sector of the economy as this can enhance the productive capacity of the economy and reduce the negative effect on balance of payment and other macroeconomic variables. Policies should be advanced to reduce external borrowings; this can reduce the debt burden and reduce the incidence of original sin in the financial market.

The Impact of Inflation on the Performance of Stock Markets in the Gulf Cooperation Council Countries

This study explores the interplay between inflation and stock markets in Gulf Cooperation Council (GCC) countries from the 1990s to the early 21st century. Utilizing a PANEL time series model and Autoregressive Distributed Lag (ARDL) approach, we focus on the financial sector, emphasizing stock market performance. Our analysis of annual data reveals a significant, long-term impact of inflation on GCC stock markets, emphasizing a reciprocal relationship. We observe stability in this impact and identify potential variations among GCC countries. The study contributes valuable insights into the economic dynamics of the GCC region, with implications for investors, policymakers, and researchers navigating the intricate connection between inflation and stock market behavior.

The nexus between local government debt risk, real estate sector, and financial stability

Rising local government debt and downturn in the real estate sector pose significant challenges to China’s economic growth and financial stability. To analyze these challenges, this paper develops a dynamic stochastic general equilibrium (DSGE) model to study the nexus between government debt risk, real estate sector, and financial stability. The findings suggest that an increase in debt risk initiated by a housing demand shock could have a persistent and magnified effect on the financial sector and the macroeconomy. The amplification mechanism originates from risk spillover and debt crowding-out effect, which trigger the negative feedback between the debt and financial risk. Longer debt maturity and the implementation of credit policy could effectively moderate the contractionary effects of this risk interaction on the economy.

Economic Growth through Rent Streams, Financial Development and Institutional Quality in Mena

This study examines the relationships between natural rent streams, financial development, institutional quality, and economic growth in the Middle East and North Africa (MENA) region and is the development of fixed effects panel models during 1990–2020. The analysis of the MENA region sheds light on the complex, dynamic nature of the region’s economies and societies, as this region is an interesting case study where economic, political and cultural dynamics are diverse. The region faces economic diversification needs, conflicts, migration, and climate change, making this study timely and relevant. To this end, fixed effects regressions and scenario approaches were applied to the collected panel data. The findings reveal natural resource rents as the primary driver of economic growth, their effectiveness dependent on financial development and institutional quality levels. A well-developed financial sector facilitates efficient channeling of rents into productive investments, while strong institutions mitigate resource curse effects. In contrast, while remittances and foreign aid do not directly impact growth, their effectiveness is enhanced by financial development and institutional frameworks. The results highlight the critical roles of financial sector development, institutional quality, and robust governance in shaping the impacts of resource rents in this resource-rich region. The policy recommendations emphasize strategies for managing resource wealth, strengthening financial systems, promoting inclusion, improving institutions, and fostering an enabling environment for remittances and foreign aid to promote sustainable economic growth.

The Influencing Factors of RMB Exchange Rate in the Background of Anti-globalizationAn Empirical Evidence Based on VAR Model

Affected by the epidemic and geopolitics, global economic growth has slowed down, trade protectionism has begun to emerge, and anti-globalization sentiment has begun to sprout. With the pace of the Federal Reserve's interest rate hike, the global exchange rate, especially the RMB exchange rate, is gradually under pressure, which has a great impact on the economy and financial sector of the whole country. The research topic of this paper is the influencing factors of the RMB exchange rate in the background of anti-globalization, and the empirical analysis of the VAR model based on Stata software. The study found that rising domestic interest rates, a rising balance between import and export trade and rising uncertainty about US economic policy will lead to the appreciation of the RMB, while the growth of money supply will lead to the depreciation of RMB. It is worth noting that the RMB exchange rate is less affected by the uncertain economic policy factors in the United States, which shows that under the current anti-globalization and international game background, China still has a relatively independent control of the foreign exchange market.

Sustainability and software development projects: leadership, core self-evaluation and empowerment as critical success factors

Purpose The purpose of this paper is to integrate job demands–resources theory with core self-evaluation theory to examine how and when sustainable project leadership stimulates sustainable project performance. Psychological empowerment is used as a mechanism between sustainable project leadership and sustainable project performance, whereas core self-evaluation acts as a moderator between sustainable project leadership and psychological empowerment. Design/methodology/approach This study adopts a time-lagged two-phase approach to collecting data from 257 software engineers working in medium-sized and large companies in the Polish financial sector. Findings This study reveals the direct and indirect (through psychological empowerment) effects of sustainable project leadership on sustainable project performance. It also confirms that the “sustainable project leadership–psychological empowerment” relationship strengthens with increasing level of project team members’ core self-evaluation. Originality/value This article explores a unique research framework. It significantly enriches the literature on sustainable project management, increasing the understanding of effective leadership practices that address the needs of software engineering teams to support sustainable project performance.

A Comparative Analysis of the Design and Implementation of the Twin Peaks Model of Financial Regulation in South Africa and Australia

Abstract In response to the 2007-2009 global financial crisis, South Africa, like most other countries, embarked on a journey of financial regulatory reform. This transformation has seen the country shift away from a silo approach, where various sectoral regulators supervise different financial institutions, towards the Twin Peaks model of financial regulation. The term “Twin Peaks” refers to the separation of regulatory functions between two independent regulators. For instance, one regulatory agency is responsible for the supervision of the safety and soundness of financial institutions, and the other is focussed on the regulation of business conduct. The Twin Peaks model is designed to provide the benefits and efficiencies of an integrated approach while simultaneously addressing inherent conflicts between the objectives of the safety and soundness of the financial system and consumer protection. The Financial Sector Regulation Act provides for the Twin Peaks model in South Africa. This Act positions South Africa as one of the first developing countries to adopt the model. On the other hand, Australia is the pioneer of the model since it implemented it in 1998. Its implementation in Australia, much as in South Africa, involved the separation of regulators for prudential soundness on the one hand and market conduct and consumer protection on the other. In this article, the authors provide a comparative analysis of the design and implementation of the Twin Peaks model in Australia and South Africa. They argue that while there are minor differences between the design and implementation of this model in Australia and South Africa, the model was customised and implemented to align with the specific needs of each country

Board diversity effect on financial performance in Indonesian financial institution

Board diversity is important in the current business environment, board diversity considered be able to provide diverse points of view, it is considered to be able to build effective corporate governance. This study highlights board diversity issue in Indonesia financial sector institution, taking consideration their effect on financial performance measured using Tobin Q. This study purpose are analyses the effect of board of commissioners gender diversity, board of directors gender diversity, board of commissioners nationality diversity, and board of directors nationality diversity on financial performance. The investigation makes use of regression analysis from 67 financial institution listed in Indonesia from 2020 until 2022, with total 201 sample. Our finding highlights that board of directors gender diversity, and board of directors nationality diversity positively affects financial performance, while board of commissioners nationality diversity negatively affects financial performance, and board of commissioners gender diversity does not affect financial performance.