Development Of Financial System Research Articles

Financial system and economic development: a study for emerging countries through a system of simultaneous equations

Objective: The objective of this paper was to analyze the bidirectional relationship between financial development and economic growth for a dataset of Latin American and Asian developing countries between 2001 and 2019. Method: This research employed an empirical approach to analyze the statistical relationship between financial development and economic growth, by presenting an estimation of a system of simultaneous equations for a panel of Asian and Latin American countries using 3SLS. Main Results: The results presented in this research provided evidence that financial development does not appear to have a significant impact on economic growth, although growth appears to have a significant and positive influence on financial development. Moreover, the results also suggested that regulatory quality and domestic credit directed to the private sector have a positive effect on economic growth, while urbanization and education showed a negative influence on growth. The estimated model also indicated that urbanization has a positive influence on financial development while foreign direct investment presented a negative effect on the development of the financial sector. Relevance / Originality: Most of the research agenda on the topic of finance and growth has focused on identifying correlation or causality between these variables, with little attention given to the simultaneous relationship between them. This is still a clear gap in economic literature. Following this premise, the objective of this paper was to analyze the bidirectional relationship between financial development and growth by estimating a system of simultaneous equations using the Zellner and Theil’s (1962) 3SLS methodology. In this sense, the main contribution will be given empirically, based on data and analysis from emerging countries in Latin America and Asia. The fact that financial development has an influence on growth and growth plays a role on the development of the financial sector indicates a simultaneous relationship between these variables. Another relevant contribution is to update the debate on financial systems and economic development for emerging countries, highlighting institutional aspects and financial cycles. Theoretical / Methodological Contributions: The main contribution of this study is in the empirical strategy, whose results dialogue with part of the literature on the financial system and development presented along the text. That is, this research explored the statistical relationship between economic development and financial development for a sample composed by twenty-two Asian and Latin American emerging countries, using a simultaneous equations model.

Quantitative analysis and management of sustainable development of ecological water resources and digital financial system based on an intelligent algorithm

Abstract In the modern day, water is a crucial resource for advancing society and preserving ecological balance. Growth, which lessens poverty and increases equality, is often seen as inextricably linked to the effective use of water resources. Traditional water system management aims to optimize surface water and subsurface aquifers to meet conflicting needs. As a result, the special difficulties in water resource management (WRM) would be exacerbated by the added uncertainty brought on by climatic change. Managing the world's water supplies sustainably is crucial to the planet's continued existence and prosperity. However, ecological planning for sustainable water development is difficult because of complex impacts, random processes, and hydrological restrictions. The study was inspired to address the issues head-on by creating a hybrid AI algorithm for ecological water resource sustainability and digital finance (HAI-EWRS-DF) system for solving complex, multi-scale problems in WRM. Control mechanisms, including social, financial, and sustainability on ground-level and surface-level water resource facilities, are recommended to enhance WRM to increase the applicable revenue, promote community well-being, and pave the way for greater economic development.

Research on the application of hierarchical analysis method in the construction of financial risk evaluation system of colleges

In recent years, along with the continuous promotion of China's education and teaching reform, colleges have invested a large amount of education expenses for education work, and their financial management problems have become one of the important work. As an important part of financial management, financial risk in colleges plays an important role in the normal operation of financial system and long-term sustainable development of colleges. Based on this, this paper analyzes its application in the financial risk evaluation system of colleges by using hierarchical analysis method, which is a reference and reference for colleges to improve and strengthen the construction of financial risk system.

The Impact of the Continued U.S. Interest Rate Increase and China's Response— An Analysis Based on the Case of Typical Developing Countries

The Fed's announcement of an increase in the federal funds rate has caused a global trend of interest rate hikes, resulting in the return of the U.S. dollar and global currency depreciation, making it the most important economic phenomenon in 2022. The subject of this paper is to analyze the economic impact of the Fed's interest rate hikes on developing countries, and this paper uses data from government portals in several developing countries to further study the response of each country and to identify possible solutions for developing countries to deal with the problem of interest rate hikes. The study finds that the Fed's interest rate hike has caused capital outflows, exchange rate depreciation, and increased financial risks, which are limited in scale, and the status of international settlement of RMB's currencies still needs to be improved. In order to support the stability and healthy development of China's financial system and currency in light of the current complex international situation, it is important to increase the implementation of prudent monetary policy, maintain independence and autonomy, strengthen macro-prudential regulation, stabilize the RMB exchange rate, and implement proactive fiscal policy.

The Impact of Innovative Financial and Banking Development on the Economic Growth of Bosnia and Herzegovina

Abstract Achieving sustainable economic growth is one of the main goals of economic policy in modern countries. As previous research has shown, the development of financial system has a significant influence on economic growth. The importance of the innovative banking sector in developing countries becomes particularly important due to the insufficient evolvent of other parts of the financial system. The subject of this paper is the analysis of the impact of the banking sector of Bosnia and Herzegovina on economic growth in the period from 2000 to 2021. The aim of the study is to quantify this relationship. In this study we apllied ARDL model to determine long-term and short-term relationship between observed variables. The results show that the increase in total loans granted by the banking sector to companies from the non-financial sector has a positive impact on the development of GDP. Namely, a 1% increase in total bank credit to non-financial private sector firms leads to an increase in GDP of about 0.08% in long run and about 0.20% in short run.

Sistem Informasi Keuangan Siswa Berbasis Web Mobile di RA Al-Irfan Purwakarta

This Student Financial Information System is a system used to manipulate student financial data contained in an educational institution, with the aim of obtaining fast and accurate information for the purposes of a student financial information system at Raudlatul Athfal (RA) Al-Irfan Ciganea Purwakarta. Raudlatul Athfal (RA) Al-Irfan is a level of early childhood education (namely 6 years or below) in the form of formal education. Having a student financial information system which is considered to be still ineffective where the student financial information system still uses a manual system, and making reports takes quite a long time. This study aims to determine the current student financial information system, design the system, analyze and test the system as well as implement and build a student financial information system at RA Al-irfan Purwakarta. In developing this student financial information system, the authors used a structured approach method in which the data collection techniques used included observation and interviews. The development method uses a structured method with several tools and working techniques such as flowmaps, context diagrams, and data flow diagrams. For the development of this student financial information system, the authors use a mobile web-based application system, where the web can be accessed on computers and smartphones. Its supporting software is Xampp, CSS, HTML, MySQL, and PHP. The results of the study can be concluded that by building a student financial information system at Raudlatul Athfal (RA) Al-Irfan Ciganea Purwakarta, it is hoped that it can assist staff or employees in managing student financial data more effectively and efficiently, as well as minimizing errors in the process of making reports.

ASSESSMENT OF THE RELATIONSHIP BETWEEN MARKET-BASED FINANCIAL SYSTEM AND GROSS DOMESTIC PRODUCT PAR CAPITA, KENYA.

This study assessed the relationship of market-based financial system development indicators and Gross Domestic Product par capita in Kenya. for the period running from 1997 to 2007. The Gross Domestic Product was as low as 1.2% in the first macroeconomic stability in the period running from 1997 to 2001 and was as high as 7.0% in the second macroeconomic stability in the period running from 2002 to 2007. Data capture was by census technique and checking of secondary material on Kenya National Bureau of Statistics(KNBS), Nairobi Security Exchange(NSE), and Capital Market Authority(CMA), Data analysis and interpretation was through descriptive statistics and inferential statistics. The financial indicators of a market-based financial system were characterised as size, activity and efficiency indicators. Stock market capitalization/GDP, private bond market capitalization/GDP, public bond market capitalization/ GDP were size indicators. Stock market total value traded / GDP was activity indicator. Stock market turn- over ratio was efficiency indicator. This study was in relation to literature review which depicts some financial indicators as being counterproductive to each other and in their contribution to GDP per capita. In the first macroeconomic stability (1997-2001), the bank based financial system was79% against 21% of the market based financial system. In the second macroeconomic stability (2002-2007), the bank based financial system was 54% against 46% of the marked based financial system. Financial indicators (Public bond capitalization Ksh.bn/GDP, Market Capitalization Ksh.bn/GDP, turnover ratio and total value traded) as significant predictor of GDP per capita and significantly correlated to GDP par capita in Kenya.

Influence mechanism of financial development on carbon emissions from multiple perspectives

Financial systems are believed to be an effective means of influencing carbon emissions through efficient resource allocation. Our study aims to investigate the impact of financial development on carbon emissions in China from multiple perspectives. Using a sample of 30 provinces in China during 2000–2019, we analyze the short- and long-term effects of financial development on carbon emissions using the Pooled Mean Group estimator. We also explore the intermediary mechanisms and spatial spillover effects. In particular, we examine the nonlinear relationship between financial development and carbon emissions, taking into account the poverty threshold effect. Our findings show that financial development significantly reduces carbon emissions in the long term, but no significant short-term relationship is observed. We identify three mechanisms: (1) the emission reduction effect of financial development is stronger when poverty levels are lower, (2) the structural effect partially explains the negative relationship between financial development and carbon emissions, while the scale and technology effects weaken it, and (3) financial development reduces carbon emissions at the regional level but increases them in neighboring regions through spatial spillover effects. Based on our results, we recommend promoting the development of financial systems in China as an effective means of mitigating climate change over the long term.

Determinants of Banking Sector Efficiency in Kenya: Application of Non-parametric Data Envelopment Analysis (DEA) Model

The financial system plays an important role in the economic development and financial stability of a country. Banks play a critical role in facilitating stability of the financial system and economic development. Evaluating the determinants of banking efficiency therefore provides insight to establish the target factors that influence efficiency to facilitate inefficiency identification and elimination.
 The study’s objective was to evaluate the determinants of banking sector efficiency in Kenya for the period 2006 to 2017. Secondary data were collected from the annual reports and financial statements of 10 commercial banks listed on the Nairobi Securities Exchange (NSE). The analysis was carried out in two stages. In the first stage, the non-parametric Data Envelopment Analysis (DEA) approach was used to compute the efficiency scores. In the second stage, panel regression analysis was then performed to evaluate the determinants of efficiency. The results showed that Capital Adequacy and Market Capitalization are significant in determining the Efficiency of a bank, p =0.0315< 0.05 and p=0.0253< 0.05 respectively. Further, bank size (p = 0.000< 0.05), capital adequacy (p = 0.0014< 0.05), leverage (p = 0.0000< 0.05) and Liquidity risk (p = 0.0000< 0.05) have a significant effect on Scale Efficiency. Market capitalization (p = 0.5056>0.05) is statistically insignificant in influencing the Scale Efficiency of the bank. From the findings, the study, therefore, concludes that, bank size, capital adequacy, liquidity risk, leverage and market capitalization have a significant effect on bank efficiency. The study recommends that bank managers should focus on improving management quality by ensuring compliance with prudential guidelines issued by the Central Bank of Kenya. Particularly, bank managers should ensure capital adequacy and market capitalization requirements are met since they are found to be the key drivers of efficiency and performance. Further, maintaining an optimal bank size, market capitalization, appropriate liquidity risk and leverage level is significant in guaranteeing improved performance.

Research on the Development of Financial Shared Service Center System—Based on Qingdao Haier Group

Research on the Development of Financial Shared Service Center System—Based on Qingdao Haier Group

Currency Fluctuations and Islamic Stock Indices in Emerging Markets

This research aims to explain why Islamic stock indexes tend to track the currency exchange rates of emerging countries. Granger causality is used in this analysis, and it is applied to daily data beginning with the day the index was first formed for each country. The Islamic stock indices of Malaysia, Indonesia, and India were employed as a research sample in this study. According to the findings of the research, there is only a correlation in one direction between the Islamic stock index and the currency exchange rate. Both the Islamic stock indexes in Malaysia and India have an effect on the currency exchange rate in that nation, whereas the currency exchange rate in India affects the Islamic stock index. This finding is helpful as a source of data in determining policies for the development of the Islamic financial system because it was discovered that.
 Keywords: Islamic Stock; Granger Causality; Exchange Rates; Developing Country

FACTORS INFLUENCING THE INNOVATIVE ORIENTATION OF BANKING BUSINESS MODELS

Today the development of financial systems of individual countries takes place under the significant influence of various factors, largely caused by the processes of globalization. The existence of global financial architecture causes the interdependence of many processes of the world economy and leads to the integration and inclusion of national banking systems in it.

Financial Big Data Intelligent Service System Based on Cloud Computing of Internet of Things

The financial big data intelligent service system belongs to the technical field of financial data management. It is an innovation of the client and server of the financial service system, which promotes the electronic office of the financial system. This paper aimed to analyze the cloud computing means of the Internet of things (IoT), select a more suitable specific algorithm, and conduct an in-depth study of the financial big data intelligent service system so that it can better serve the current financial situation. This paper gave a general introduction to the cloud computing of the Internet of things, researched and analyzed the financial big data intelligent service system machine, and applied the cloud computing of the Internet of things to the research of the financial big data intelligent service system. Based on the experiments in this paper, it can be seen that among the students in the three colleges and universities in place A, 567 people thought that they can adapt to the intelligent financial system better than the already employed salesmen, and 245 people held a negative attitude. It showed that the intelligent development of financial systems is a trend, but at the same time, it is also a development trend to strengthen the business training capabilities of professionals. The experimental results of this paper showed that the process of studying the financial big data intelligent service system based on the cloud computing of the IoT is more scientific and effective than using other means to analyze the experimental data, and it has greater reference significance for the intelligent development of the financial system.

Impact of digital financial innovation on financial system development in Common Market for Eastern and Southern Africa (COMESA) countries

PurposeThis paper aims to assess the impact of digital financial innovation on financial system development in Common Market for eastern and Southern Africa (COMESA). This paper evaluates the dynamic relationship between digital financial innovation measures and financial system development using time series data from COMESA countries for the period 1997–2019.Design/methodology/approachA dynamic autoregressive distributed lag model (ARDL) was adopted and the mean group (MG), pooled mean group (PMG) and dynamic fixed effect (DFE) of the model were estimated to evaluate the short- and long-run impact. In addition, the dynamic generalized method of moments (DGMM) was adopted for a robustness check. The Hausman test results show PMG to be the most consistent and efficient estimator, while the coefficient of lagged dependent variable of different GMM is less than the fixed effect coefficient, and, as such, suggests system GMM is the most suitable estimator. Data for the study were sourced from World Bank Development Indicator (WDI, 2020), World Governance Indicator (WGI, 2020) and World Bank Global Financial Development Database (GFD, 2020).FindingsThe result shows that digital financial innovation significantly impacts financial system development in the long run. As such, the evidence revealed that automated teller machines (ATMs), point of sale (POS), mobile payments (MP) and mobile banking are significant and contribute positively to financial system development in the long run, while mobile money (MM) and Internet banking (INB) are insignificant but exhibit positive and inverse relationship with financial development respectively. Further investigation revealed that institutional quality and a stable macroeconomic environment including their interactive term are significantly imperative in predicting financial system development in the COMESA region.Practical implicationsResearchers recommend a cohesive and conscious policy that would checkmate the divergence in the short run and suggest a common regional innovative financial strategy that could be pursued to incentivize technology transfer needed to promote financial system development in the long run. More so, plausible product and process innovations may be adapted to complement innovative institutions in the different components of the COMESA financial system.Social implicationsDigital financial innovation services if well managed increase the inherent benefits in financial system development.Originality/valueTo the best of the authors’ knowledge, this paper presents new background information on digital financial innovation that may stimulate the development of the financial system, particularly in the COMESA region. It also exposes the relevance of digital financial innovation, institutional quality and stable macroeconomic environment as well as their interactive effect on COMESA financial system development.

Economic Security in Strategic Planning Documents

The strategic development of modern Russian regions is acquiring more and clearer methodological content, mastering new models for analyzing the factors that determine the prospects for the development of economic entities. In relation to the analysis of the situation in terms of ensuring economic security, the results of which determine the development of a particular region, it is important to evaluate the practice of ensuring economic security, reflected in the development strategy of the region. Considering the essence of such a phenomenon as “development”, it is necessary to namesuch aspects of this process as changes that accompany development and are aimed at achieving the goal. The researchers note that the changes, as a rule, are natural and irreversible. In terms of the strategic development of regions, as well as any socio-economic systems, changes of this kind are also irreversible, since they do not allow returning to their original state. Thestrategic development of regions, as well as economic entities, provides not only an increase in internal potential, but also creates a competitive advantage when interacting with the external environment. The purpose of this study is to determine the special provisions of economic security in the regional development strategy using the example of a typical region of the Central Federal District, which allows us to assess the problems of implementing the directions of the country’s economic security strategy and determine the tasks for adjusting the regional development strategy. Among the research methods used are content analysis of documents, system analysis, methods of grouping and generalization, as well as methods of logical analysis and synthesis of information within the subject area of research. In this paper, it has been established that there are no independent sections on any aspect of economic security, and certain aspects are not presented systematically and reflect the target orientation of the strategy developers to a greater extent than contain specific projects and programs of direct action in terms of ensuring the economic security of the region. In general, in the text of a strategy of a typical region there is no emphasis on economic security, and general phrases in the form of tasks that the region needs to solve are similar to declarative statements about the need to resolve individual issues. For the future, an analysis is needed, which should be carried out from the point of view of the tasks set for each area of economic security, which are determined by the country’s economic security strategy, with the exception of issues related to the development of the national financial system due to the lack of powers of the region in this area.

Green finance in Kazakhstan’s context: market overview

The adoption of the concept of “sustainable development” necessitated the search for ways to achieve sustainable goals, the definition of directions for the transformation of economic relations, and the emergence of a new term: “green economy”, or “green finance”. Through the transition to a “green” economy and “green” financing, the Government of Kazakhstan will be able to fulfill an important task – the development of a new financial system. Financing of green projects contributes to improving the quality of life in society; aims to preserve natural resources and the environment. The main purpose of the scientific article is to determine the sources of investment to finance the “green” economy of Kazakhstan today. The following research methods were used: general scientific research methods, and quantitative methods of statistical, causal, and comparative data analysis for analyzing the current state of green finance in Kazakhstan and identifying problems with green finance. Research results show that in the Concept for the transition of Kazakhstan to a “green” economy, the corresponding investments are estimated at approximately $3-4 billion, or about 1% of GDP per year. The most active green projects are being developed in Akmola, Atyrau, Kostanay, and Zhambyl regions. Research findings suggest that a “Green” transformation of the economy is impossible without the implementation of the principles of responsible investment (PRI). The results of the study will be helpful for entrepreneurs and business entities engaged in the green finance industry or for government agencies responsible for the development of green infrastructure in Kazakhstan.

The economic essence and role of financial planning in the enterprise management system

For the successful development of business, it is necessary to constantly improve the financial planning system of the enterprise and firm while accumulating domestic and foreign experience and developing new concepts and methodologies. It approaches that consider business conditions. The growing independence of enterprises and their independence from budgetary sources of financing, on the one hand, determined a great initiative in the development of financial planning systems, increased the variability of approaches to their story, and on the other hand, led to the blurring of the single methodological principles of such planning. The lack of a unified model of the financial planning system at the enterprise, enshrined in legislation, and the presence of several debatable issues in the theory of financial planning and budgeting led to the emergence of problems in the field of financial planning organization, the solution of which will allow maximizing the advantages of this technology for enterprises. Along with this, the existing methods and methods of financial planning at enterprises do not fully meet the requirements of economic development at the current stage, which necessitates a new understanding and organizational and technological solutions that allow enterprise managers to overcome the errors of a non-systematic approach and arm themselves with new tools for the effective organization — financial planning process. Financial planning will enable businesses to model strategic direction and take action to optimize financial and business performance. This approach is forward-looking and is used to help finance direct the company to achieve its strategy. Financial planning covers long-term plans, scenario modeling, annual budgeting and forecasting, unique reporting, and analysis. Financial planning - this critical, significant tool and method of financial management needs theoretical and methodological improvement, solving the urgent current problem of overcoming the gap between strategic financial plans and tactical ones with the help of new management approaches and concepts, which include a balanced system of indicators. Keywords: planning, management, indicator system, enterprise, resources

Comparative characteristics of Anti-money laundering and combating the financing of terrorism (AML/CFT) mechanisms Republic of Kazakhstan and Russian Federation

The research topic is related to the comparative analysis of the mechanisms of functioning of AML/CFT systems of the Russian Federation and the Republic of Kazakhstan. The object of the study is the mechanisms of functioning of the "Countering money laundering and terrorist financing" AML/CFT systems of the Russian Federation and the Republic of Kazakhstan in terms of identifying and reducing the risks of money laundering and terrorist financing of ML/FT. The subject of the study is a set of economic relations related to the functioning of the national AML/CFT systems of the Russian Federation and the Republic of Kazakhstan to identify and reduce the risks of money laundering and terrorist financing of ML/FT. The purpose of the study is to conduct a comparative analysis of the mechanisms of functioning of the "Countering money laundering and terrorist financing" AML/CFT systems of the Russian Federation and the Republic of Kazakhstan.   The purpose of the study is to analyze and compare the mechanisms of functioning of the "Countering Money laundering and terrorist financing" AML/CFT of the Russian Federation and the Republic of Kazakhstan. Results of the work - for the first time a comparative analysis was carried out and problem areas of AML/CFT systems of the Russian Federation and the Republic of Kazakhstan were identified. The value of the conducted research is to contribute to the further development and improvement of the national financial monitoring system of the Republic of Kazakhstan by identifying inconsistencies in the AML/CFT systems of the two countries and determining the points of their convergence and harmonization. Practical significance - the results of the comparative analysis will contribute to taking into account the current problems and prospects for the development of national AML/CFT systems of the Russian Federation and the Republic of Kazakhstan, will assist in eliminating the shortcomings inherent in these systems in terms of identifying and reducing the risks of ML/FT. Keywords: financial intelligence, financial monitoring, money laundering, AML/CFT system Keywords: financial intelligence, financial monitoring, money laundering, AML/CFT system

Analyzing the conditions of the current Russian market development

Subject. The article addresses the specifics of Russia's monetary policy in the context of international sanctions. Objectives. The aim is to analyze the relationship between the key indicators of the Russian financial system development. Methods. The study rests on methods of statistical, neural network, and cluster analysis. Results. The paper recorded an excess of the growth rate of cash incomes on average per capita over the growth rate of real money income. The decrease in the share of federal budget revenues in the consolidated budget and the growth of the corresponding share of expenditures necessitate an increase in federal taxes. Conclusions. In critical conditions, it is required to reduce the pressure of federal taxes on the economy and increase real money incomes of the population.

Energy efficiency as a sustainability concern in Africa and financial development: How much bias is involved?

This study contributes to the literature on whether financial development stimulates technical energy efficiency (TEE) or not, by addressing core biases that creep into the relationship and thereby reducing the ability to draw causal inferences from financial development to TEE. Our approach is based on the instrumental stochastic frontier technique, where biases in the frontier and inefficiency equations are dealt with using external instrumental variables. The legal system origin of the country and life expectancy at birth were used as instruments for financial development and income, respectively. The current study demonstrates substantial bias in income elasticity, the estimate of energy efficiency, and the effect of financial development on energy efficiency. Both income elasticity and energy efficiency estimate risk upward bias. Equally, the effect of financial system development and financial institution development on TEE risk downward bias. Other results show that all aspects of financial institution development stimulate TEE, but access to financial institutions is more important. These results raise caution about future studies' estimates of the effect of financial development on TEE. Though this study has demonstrated the potency of external instruments in dealing with the bias in the coefficient estimates, we consider this might prove to be a luxury solution in some cases due to data limitation, context differences, and theory. In those circumstances, reliance on internal instruments might prove to be the second-best option.