Financial Services Institutions Research Articles

Role of Artificial Intelligence in Global Finance

Artificial Intelligence (AI) has become an integral part of every financial sector. It is found to be the key player in the banking and other financial service institutions. More than 80 percent of banks have understood the potential benefits of application of AI in the industry. The use of AI in financial institutions helps to resolve the practical issues in taking financial decisions. The aim of this paper is to understand the applicability of Artificial Intelligence in financial sector and to study the uses of AI in financial credit decisions and risk management.

Nigeria’s Financial Sector Liberalization: An Implicit Cultural Policy for Art Market Development

This study adopted historical research and in-depth interviews with artists, dealers, art writers, and collectors in addressing two overarching questions, which are (1) How have state actions manifested as the impetus and impediments to art market development in Nigeria and (2) To what extent is Bourdieu’s artistic field model applicable to the Nigerian art world? As the boost in artistic production and consumption in Renaissance Italy was attributed to the wealth generated from banking by the Medici, the research also shows that the art market in Nigeria emerged as an upshot of the economic policy of financial deregulation, which manifested as an “implicit” cultural policy. The financial sector liberalization policy was aimed at addressing the economic depression that stemmed from the drastic global fall in crude oil prices in the 1980s. It stimulated the proliferation of banking and other financial services institutions in Nigeria, which engendered intense competition that lured operators into harnessing esthetics for competitive advantages. This bolstered art collection and patronage, underpinning the emergence of the contemporary art market in Nigeria with an auction segment that grew from about $250,000 in 1999 to over $5.5 million in 2017. Paradoxically, the research also revealed that inadequacies resulting from the lack of “explicit” state plans for the cultural sector constitute impediments to the optimization of the market’s potential. As a mark of power, high art and advanced taste have always been associated with elitism. Thus, the research also establishes a high degree of applicability of Bourdieu’s artistic field model in exploring the dynamics of power structures in the Nigerian art world.

Unravelling the Path to Green Banking: A Case Study of Karnataka Bank

Purpose: Banks are adopting the concept of green banking to minimize both external and internal carbon emissions, which is an emerging trend. This paper aims to study the emerging trends of Green banking in India. The major purpose of the research article is to investigate the concept of green banking initiatives by Karnataka Bank and to examine the problems faced by Karnataka Bank to reach its green banking goals. Karnataka Bank Ltd.’ is the leading top ‘A’ c1ass schedu1ed Indian Commercial Bank. As a premier bank, a diverse array of products and services has been created and tailored to fulfill the varying business or personal requirements of customers. It is one of the leading emerging financial service institutions in India which has several branches all over India Methodology: In pursuit of the paper’s goals, secondary data sources such as books, journals, articles, newspapers, and websites have been employed. Findings: Private and public sector banks have taken necessary steps to reduce carbon emissions. All customers of the bank are offered green products and services and also more concern is shown towards environmental issues. The initiatives taken by most Indian Banks and the offering of green products and services by banks have proved to help preserve environmental balance and achieve sustainable development. Originality/Value: Based on the data available from secondary sources, the paper attempts to examine green banking practices in India and the initiatives of Karnataka Bank. Paper Type: Case Study

Enhancing Sustainable Banking Practices: Implementing the Besgi Framework to Indonesian Bank

Climate change, a global issue largely caused by human activities, is now beginning to be addressed by the G20, including financial institutions. Indonesia, as part of the G20, is implementing a sustainable finance program to improve the financing, durability, and competitiveness of financial services institutions. This study evaluates the adoption of sustainable banking practices in Indonesia within the context of global climate change initiatives. Using the Banks’ Environmental, Social, Governance, and Indirect Impact (BESGI) framework, which provides a comprehensive assessment of banks’ ESG performance using the Multidimensional Synthesis of Indicators (MSI) aggregation method. The BESGI performance of 14 Indonesian banks from 2020-2022 was assessed, revealing varying results of fluctuating data with Mandiri scoring the highest in year 2021 and BTN the lowest in year 2020. The findings indicate a growing emphasis on sustainable finance within the Indonesian banking sector in terms of financing and investment. The BESGI Score has insignificant results on banks’ performance and stability. However, further research is essential to comprehend the implications of these practices on the performance and stability of banks.

Peran Efektivitas Literasi Keuangan dan Pembiayaan Syariah Terhadap Stabilitas Keuangan UMKM

MSMEs have great potential in driving macroeconomic development in Indonesia, but are faced with various internal and external challenges. This article aims to analyze the factors that affect the financial stability of MSMEs, with a focus on financial literacy and Islamic financing. The research method used is Literature Review Study (SLR), by collecting secondary data from various articles. The data analysis technique involves synthesizing and interpreting information from relevant literature. The results showed that financial literacy has a positive and significant influence on the financial performance of MSMEs. SNLIK results In 2022, the financial literacy of Indonesians reached an improved level to 49.68%, while financial inclusion increased to 85.10%. This comparison shows an increase from the 2019 National Survey on Financial Literacy and Inclusion (SNLIK) results, where financial literacy was 38.03% and financial inclusion was 76.19%. Financial literacy, which includes an understanding of financial management, financial services institutions, financial products and services, plays a crucial role in helping MSMEs make informed financial decisions. Data from the National Financial Literacy Index shows a positive increase, but further efforts are still needed to improve the financial literacy of MSMEs. In addition to financial literacy, Islamic financing from Islamic banks also contributes to improving the financial performance of MSMEs. The growth of Islamic financing over the past few years shows that Islamic banks have an important role in supporting MSMEs. However, there are still challenges such as the lack of public knowledge about Islamic banking and the lack of human resources (HR) to reach more networks. In conclusion, improving financial literacy and utilization of Islamic financing can be an effective strategy to improve the financial stability of MSMEs in Indonesia. Efforts to improve financial literacy and public understanding of Islamic finance are expected to be the focus of policies that support the growth and stability of MSMEs.

The Role of the Financial Services Authority (OJK) in Overcoming Illegal Investment Cases According to the Capital Market Law

Illegal investment is an investment that does not have legal permission from the state for the investment you want to make. Illegal investment often occurs in developing countries, one of which is Indonesia. This illegal investment tends to occur more frequently in developing countries compared to developed countries. In Indonesia, the institution responsible for illegal investments is the Financial Services Authority (OJK). As a result of the rise in illegal investment, it can lead to fraudulent or fictitious investment. If this happens, it is certain that the victim will not get their money back because the investment service provider has been aiming to deceive people from the start. The OJK's authority to deal with illegal investments in Indonesia is contained in Law number 21 of 2011 concerning the Financial Services Authority, where the OJK has the authority and duties of the OJK in supervising financial services institutions in the capital markets sector.

THE URGENCY OF ISLAMIC BANKS FOR HAJJ FUND SERVICES

The high level of public interest in the products and services of financial institutions, especially banks, is followed by the increasing selectiveness of the public in choosing financial institutions. This is done by the community to guarantee a protected and quality product. Only financial institutions that have a high commitment and are trusted will be chosen by the public. The success of a financial institution is marked by the number of consumers who are loyal to it. When consumers are loyal to companies or financial institutions, consumers will tend to buy and use, even make repeat purchases of the company's products or services. Consumers have a high level of loyalty which can be seen from the continuous use of a product or service.
 Management of Hajj fund services carried out by Islamic Banks for prospective hajj pilgrims is fully said to be optimal in providing services, it has almost been fulfilled only in terms of promoting Hajj savings products, Islamic Banks are still lacking because they have not been able to convince the public, for this reason people do not know related information regarding Hajj savings products at Islamic Banks.

Enhancement of Financial Management of MSMEs in Cilawu District to Support the Halal Ecosystem

Most of the small traders in Cilawu District, Garut, are trapped by loan sharks. It happens due to their limited literacy and legal sources of capital. Those traders do not seem to have taken advantage of the loans offered by Sharia Banks since it takes effort and time for them to gain confidence in Sharia financial service products. This study concludes that the enhancement of the ability of UMKM financial management in Cilawu District to support the halal ecosystem is to increase the literacy of small traders in financial management, from planning to preparing financial reports, as the level of financial literacy of traders is still low and they do not have confidence in financial service institutions and financial service products. In addition, the provision of literacy in Islamic financial institutions and their financial products and services for traders is necessary since it can directly boost the activities of Islamic financial institutions and contribute to the development of the halal ecosystem.

Enhancement of Financial Management of MSMEs in Cilawu District to Support the Halal Ecosystem

Most of the small traders in Cilawu District, Garut, are trapped by loan sharks. It happens due to their limited literacy and legal sources of capital. Those traders do not seem to have taken advantage of the loans offered by Sharia Banks since it takes effort and time for them to gain confidence in Sharia financial service products. This study concludes that the enhancement of the ability of UMKM financial management in Cilawu District to support the halal ecosystem is to increase the literacy of small traders in financial management, from planning to preparing financial reports, as the level of financial literacy of traders is still low and they do not have confidence in financial service institutions and financial service products. In addition, the provision of literacy in Islamic financial institutions and their financial products and services for traders is necessary since it can directly boost the activities of Islamic financial institutions and contribute to the development of the halal ecosystem.

Penguatan Bank Perekonomian Rakyat Berbasis Asas Demokrasi Ekonomi: Paradigma Keadilan Sosial

The increasingly complex and numerous fundamental problems in the financial sector are driving financial sector have encouraged reform of the financial industry through the omnibus law, Law Number 4 of 2023 concerning Development and Strengthening of the Financial Sector (UUP2SK). The main aim of the presence of UUP2SK is to improve and direct the financial sector to be able to face global dynamics, be fair, sustainable, stable and inclusive as an embodiment of economic democracy which ultimately leads to the creation of social justice. One way of strengthening the financial services sector is through expanding the business activities of People’s Economic Banks (BPR) in Article 13 paragraph (1) letter g UUP2SK which opens up opportunities for BPR’s to collaborate with other financial service institutions, one of which is fintech lending so that they can expand accessibility all levels of society regarding funding. Based on this, the aim of this writing is to find out the implications of the UUP2SK omnibus law on expanding BPR businesses and strengthening BPR based on economic democracy after UUP2SK in realizing social justice for society. This research is normative legal research using a statutory regulatory approach and a conseptual approach. The data used is secondary data through literature study of primary, secondary and tertiary legal materials. The results of this research show that expanding BPR cooperation with other financial service institutions, namely fintech lending, can be a solution for equalizing BPR in Indonesia, as a concretization of the principles of economic democracy in realizing social justice for all society. However, it is necessary to strengthen and improve the level of substance, structure, and legal culture by prioritizing the spirit of economic democracy to realize social justice for the entire community.

PERAN OJK DALAM PERLINDUNGAN KONSUMEN PERBANKAN SYARIAH PERSPEKTIF EKONOMI ISLAM

The Financial Services Authority is an independent institution and free from interference from other parties that have functions, duties, authorities as regulation, supervision, and protection. The consumer protection function of the Financial Services Authority is contained in the Financial Services Authority Regulation Number 1 / POJK.07 / 2013 concerning Consumer Protection in the Financial Services Sector, Financial Services Authority Regulation Number 1 / POJK.07 / 2014 concerning Alternative Dispute Resolution Institutions, as well as Consumer Service and Complaint Resolution to Financial Service Institutions contained in the Financial Services Authority Circular Letter Number 2 / SEOJK.07 / 2014. The purpose of this study is to describe the form of implementation of consumer protection based on an Islamic economic perspective carried out by the Financial Services Authority of the Special Region of Yogyakarta (DIY) in handling consumer complaints in the Islamic banking sector. Research methods are qualitative methods through interviews, observation, and documentation. From the research, it is known that the Implementation of the Financial Services Authority in Consumer Protection in the Sharia Banking Sector has been well implemented in accordance with applicable laws and regulations and the application of principles in accordance with consumer protection in an Islamic economic perspective according to Alimin's theory.

Analysis of The Commercial Court’s Decision on The Postponement of Debt Payment Obligations to Life Insurance Companies Without The Approval of The Financial Service Authority

The Financial Services Authority (hereinafter referred to as "OJK") is an institution that has the authority to attribution has been established and appointed by the government to carry out regulatory and supervisory functions for Financial Service Institutions, one of which is in the case of requests for Suspension of Debt Payment Obligations (hereinafter referred to as "PKPU") at life insurance companies. This research was motivated by the issuance of a PKPU ruling against PT. Kresna Life Insurance (hereinafter referred to as "PT. AJK) by the Commercial Court based on the application of Lukman Wibowo as one of PT AJK's customers and creditors. The problem that arises is that OJK as an institution that has the authority does not respond to the application submitted by the customer in question within the period prescribed by law. This study examines and analyzes the Commercial Court Decision against PKPU at PT. AJK (Case Study Number 389/Pdt.Sus PKPU/2020/PN Niaga Jkt.Pst). The research method used in this study is normative or doctrinal legal research. The results of the study found that the PKPU was not in accordance with applicable laws in Indonesia, because legally the authority to apply for PKPU is absolutely in the hands of the OJK.

Position of Regional Development Banks as Regional Owned Enterprises

Regional-owned enterprise is a business entity established by a local government with the purpose of increasing local own-source revenue, where one of the commonly found regional-owned enterprises is a regional-owned enterprise engaged in financial service institutions. The problem that arises for regional owned enterprises engaged in financial service institutions is the overlapping provisions of the laws and regulations that govern them, so this causes legal uncertainty over the position of the Bank. So, to find out the legal certainty of the position of regional development banks, normative legal research methods are used, namely research that uses a statutory approach where the research is carried out on the provisions of the legal aspects of regional-owned enterprises, and aspects of banking law, including the legal aspects regarding limited liability companies.

Disclosure Quality Assessment of Sustainability Reporting Practices in Emerging Countries

Indonesia has become a major force in advancing sustainable finance across emerging countries. One of the reasons was due to the role of the regulator and supervisor of Indonesia’s financial services industry, Indonesia Financial Services Authority, who required, through its regulation, Financial Services Institutions, Issuers and Public Companies to submit sustainable reports to Indonesia FSA and publish them for the public. This study is intended to conduct an assessment on the scope of disclosure presented on the sustainability report submitted by the Indonesian banking industry. The methodology used is qualitative with descriptive analysis. The evaluation was conducted through a desk study by analyzing banks’ sustainability reports available on their websites. The results of the analysis demonstrated that two years before the implementation of the Indonesia FSA sustainable finance regulation, only 28,5% of sustainability reports, which have submitted voluntarily by large commercial banks, are in line with materiality and stakeholders’ engagement principles. After the sustainable finance regulation was implemented, it was found that only 56,6% of the sustainability reports submitted met the materiality and stakeholders’ engagement principles required by the regulation. Therefore, the biggest challenge lies in the effort to promote awareness and understanding on the importance of sustainable finance and the quality of sustainability report disclosure.

Basis for the Establishment of the Financial Services Authority (OJK) as Regulator and Supervisor of Financial Services in Banjarmasin

Continuous and stable supervision can be carried out by an independent institution such as Bank Indonesia or the Financial Services Authority. The basis for establishing the Financial Services Authority considers various aspects, especially technological aspects, where growth and development as well as financial service systems are increasingly needed by the public quickly and precisely. With the birth of the Financial Services Authority, regulation and supervision of financial service institutions can be easily carried out through one door, remembering that financial service institutions are not only banks but also non-bank financial service institutions and capital markets. With the formation of the OJK, it is hoped that it can support the interests of the financial services sector as a whole and increase the competitiveness of financial services institutions themselves in making contributions to national development.

Trend Comparison Of Bank Sustainable Financial Statements Based On Assessment Of Economic Aspects, Environmental Aspects, And Social Aspects

The acceleration of unbalanced economic development has an impact on environmental damage and social inequality. This article aims to find out how the trend of comparing sustainable financial statements in banks is based on assessments from economic aspects, environmental aspects, and social aspects. This sustainable financial report is the first time it has been applied to financial service institutions that have been determined based on the regulatory policies of the Indonesian Financial Services Authority. descriptive quantitative is used as a method that helps researchers in conducting research with trend analysis of sustainable financial statements comparison in banking from 2020-2021, at the bank that won the Annual Report Award in the Category of Listed Financial Banking. Research results based shows that economic, social, and environmental damage can be overcome with awareness by each bank in providing financing to consumers who care about these three aspects. This sustainable financial report is so that it can be used by the company as a policy improvement on the awareness of the financial services industry to apply from economic, environmental, and social aspects

THE SIGNIFICANCE OF FINANCIAL LITERACY FOR CONSUMER PROTECTION: A STUDY OF BANK CUSTOMERS IN DAKSHINA KANNADA DISTRICT

Awareness of available financial services from formal financial institutions is essential. Creating awareness for customers on products and services of financial institutions is called financial literacy. The term financial literacy was used when the financial inclusion concept emerged in the year 2005. Even though having a good number of banks and banking institutions, most of the people in India were excluded from formal financial services because of a lack of awareness and financial literacy. They depend upon money lenders where they get money when they needed and not had more formalities to access their monetary needs. People need to be given knowledge of formal banking facilities and brought them into formal banking penetration (Dsouza S. 2017). Financial literacy is not only creating awareness on available banking services, it also creates awareness of consumer rights and responsibilities. This paper is to study……… This paper analyses financial literacy among consumers and also examine the impact of financial literacy on consumer protection. A random sample of 106 customers was chosen as the respondents for the study. A self-administered questionnaire was used for the collection of primary data and distributed to the random samples. The result shows that most of the respondents are unaware of the grievance redressal system exists for banking customers. The study also explains the problems faced by consumers, awareness level on consumer rights, and available banking services. KEYWORDS: Financial Literacy, Banking Products and Services, Consumer Rights and Protection

Perlindungan Dan Penyelesaian Sengketa Kosumen Sektor Jasa Keuangan

Disputes in the financial services sector can occur if there is a difference in understanding between the institution and the consumer regarding a service product from the related financial institution or from the institution's negligence in fulfilling its obligations. Consumer protection is all efforts to provide legal certainty to consumers. The PK Law is the legal basis for legal protection for consumers, while the OJK Law is the Constitution of the establishment of Financial Institutions, in this case the OJK as an independent body that regulates, supervises, inspects and investigates in the financial services sector as well as aims to protect consumers as users of financial services. In the applicable regulations, consumer protection is manifested in the obligations of financial services business actors related to complaint facilitation, complaint settlement facilities, internal control, consumer protection supervision, and sanctions. Settlement of disputes in the financial services sector first through the Financial Services Institution, if no settlement is reached, then proceed with settlement in court or out of court.

PERLINDUNGAN & PENYELESAIAN SENGKETA KOSUMEN SEKTOR JASA KEUANGAN

Disputes in the financial services sector can occur if there is a difference in understanding between the institution and the consumer regarding a service product from the related financial institution or from the institution's negligence in fulfilling its obligations. Consumer protection is all efforts to provide legal certainty to consumers. The PK Law is the legal basis for legal protection for consumers, while the OJK Law is the Constitution of the establishment of Financial Institutions, in this case the OJK as an independent body that regulates, supervises, inspects and investigates in the financial services sector as well as aims to protect consumers as users of financial services. In the applicable regulations, consumer protection is manifested in the obligations of financial services business actors related to complaint facilitation, complaint settlement facilities, internal control, consumer protection supervision, and sanctions. Settlement of disputes in the financial services sector first through the Financial Services Institution, if no settlement is reached, then proceed with settlement in court or out of court.

Justice Aspects of Financial Service Authorities’s Competence for Bankruptcy and PKPU of Financial Service Institutions Based on Law No. 4 Year 2023

The Law on the Development and Strengthening of the Financial Sector was legalized by President Joko Widodo. The Act is known as Law No. 4 of 2023 often known as the P2SK Law, which stipulates that the Financial Services Authority or Otoritas Jasa Keuangan (OJK) is the only party that has the authority to file for bankruptcy and postpone debt payment obligations for financial service institutions. This research will provide novelty, especially on the definition of justice in the financial services sector, especially related to the interests of consumers and creditors with regulatory authority.This right has eliminated the creditor rights of insolvent financial service institutions. Creditors do not have any rights or legal action against defaulting or insolvent financial institutions. This research aims to examine the authority of OJK over bankruptcy and PKPU of Financial Services Institutions and justice for other creditors dan consumers according to the OJK’S authority. This researchers employed the normative juridical method. This study concluded that the authority of the OJK must be reviewed with consideration of the authority already possessed by the OJK, practical conditions in the business world specifically for financial service institutions, and the position and rights of creditors for loans to financial service institutions. The results of the study also found that the authority of the Financial Services Authority did not reflect the value of justice for consumers and creditors