Framework For Banks Research Articles

The role of Sharia compliance in moderating the indirect influence of board diversity on roe mediated by Zakat disclosure

This study aims to examine the moderating role of Sharia compliance on the relationship between the diversity of the Board of Directors, Board of Commissioners, and Sharia Supervisory Board and Return on Equity (ROE), with Zakat Disclosure as a mediating factor. The research is grounded in agency theory, stakeholder theory, and legitimacy theory, focusing on how board diversity and Sharia compliance influence corporate governance and financial performance, specifically in the context of Islamic banking. The study utilizes a sample of Islamic commercial banks listed with Bank Indonesia. Data from the banks' annual reports and financial statements between 2013 and 2023 are analyzed using a panel data regression model. Multi-Group Analysis (MGA) is employed to test the moderating effects of Sharia compliance on the indirect relationships between board diversity and ROE, mediated by zakat disclosure. The results show that Sharia compliance moderates the relationship between the diversity of the Board of Directors and ROE, with zakat disclosure acting as a mediator. However, Sharia compliance does not moderate the relationship between the diversity of the Board of Commissioners and Sharia Supervisory Board with ROE, as mediated by zakat disclosure. The research provides insights for Islamic banks, highlighting the importance of Sharia compliance and board diversity in enhancing financial performance through zakat disclosure. The findings can inform regulators and practitioners in improving corporate governance practices within Islamic financial institutions. This study contributes to the literature by offering new evidence on the role of Sharia compliance in the governance-performance relationship, particularly the indirect effects through zakat disclosure, and how this dynamic operates within the unique framework of Islamic banking.

Digitalization of Islamic Banking in Indonesia: Justification and Compliance to Sharia Principles

Technological sophistication is observed to be increasing the necessity for digitalization of Islamic banks in Indonesia to avoid being abandoned by their customers, as conventional banks rapidly advance their digital offerings and set higher expectations for financial services. However, these banks are required to comply with Sharia principles for their products and services. This study was conducted to analyze the justification of digitalization of Islamic banking system and compliance of the digital services implemented to Sharia principles. It employed doctrinal legal study methods. Data were retrieved from literature references and were analysed qualitatively using a conceptual and statutory approach. The results showed several reasons to justify digitalization of Islamic banking system and these include the current demand for digital products and services, the prevalence of the millennial generation, and the legal backing provided for the advancement in Indonesia. These principles mandate that Islamic banks must avoid practices involving maisir (gambling), gharar (obscurity), haram (prohibited activities), riba (usury), and zalim (injustice). This study is novel in its comprehensive analysis of how digitalization can be harmonized with Sharia principles in the Indonesian context, providing a unique legal and practical framework for Islamic banks aiming to modernize their services while maintaining religious compliance.

SCO and BRICS in an emerging multipolar world order

The year 2024 will be a milestone for the development of both the Shanghai Cooperation Organization (SCO) and BRICS, a unique negotiating format for rapidly growing economies. This year, Kazan will host the BRICS summit, and Astana has already held the SCO summit, which was marked by the adoption of a number of important initiatives. The assessment of the results and historical significance of these summits requires a special study, in this article we will look at the state in which both BRICS and SCO approached them, what problems they are currently facing and what prospects open up to them in the context of a global transformation of the IR system. The first section examines the main stages of the formation and current trends in the development of the SCO. The author emphasizes that in addition to addressing traditional challenges, the SCO member states are actively cooperating in countering new threats, such as separatism, drug trafficking, terrorism, and Islamic extremism. In this context, the SCO countries are particularly attentive to the rapidly changing situation in Afghanistan. The author concludes that although the SCO member countries have managed to create a solid legal framework and effective mechanisms of interaction, there are contradictions and even clashes between them on a number of issues. The second section identifies the stages of formation and current trends in the development of BRICS. The author notes that in the last few years, BRICS have been actively expanding both quantitatively by including more and more new countries in the association, and qualitatively, exploring new forms and areas of cooperation. In this regard, special attention is paid to the efforts to create a BRICS currency and to cooperation within the framework of the New Development Bank. According to the author, the SCO summits in Astana and BRICS in Kazan in 2024 should bring the development of these international structures, which embody hopes for the establishment of a new, fairer world order, to a qualitatively new level.

A framework for seasonal groundwater banking in agricultural regions: A case study

Groundwater banking has been used for demand-oriented management of groundwater resources in semi-arid and arid regions. This paper aims to propose a new framework for seasonal groundwater banking. In this framework, crop production functions are used to estimate users' bid packages representing the price of each unit volume of water in each auction period. The bid packages, along with users' water rights, are considered inputs of an optimization model, which maximizes the profit of users participating in the groundwater bank. The main outputs of the optimization model are the volumes of exchange and storage of water, as well as the water price in the auction periods. The efficiency of the proposed framework has been evaluated by applying it to the Nough region in the Rafsanjan Plain, central Iran. An existing plan for inter-basin water transfer to this region is also considered in the water banking framework. The results illustrate that the total annual profit of all users after the establishment of the bank compared to the status quo has increased up to 43.8 %. The profit of the water-recipient basin has also increased more than 4 times compared to the existing condition. In addition, water banking with a water transfer system increases the economic productivity of water and crop production by 37.32 % and 22.41 %, respectively.

Applied regression modeling to propose policy recommendations for green banking development in Vietnam

In Vietnam, green banking plays a critical role in successfully implementing the National Strategy on Green Growth for 2021-2030, vision to 2050. Green banking helps businesses invest in projects, programs and infrastructure to reduce emissions and protect the environment. Therefore, qualitative and quantitative investigations were conducted to identify the critical factors of green banking development. The structural equation model (SEM) analyzes the complex relationships between several factors related to green credit based on a survey of 450 staff members. The research provides lawmakers and bank executives with the scientific basis for new ideas. This study seeks to improve green banking institutions and offer specific solutions to promote banking and credit products and apps to help enterprises expand their green credentials. The findings also support the government and functional agencies in improving project appraisal stages and strengthening hygiene and safety credit inspections in credit policies for green banks. Finally, the results have green credit applications that advise the government to enhance the regulatory framework of green banking under international standards to provide transparency. Simultaneously, improving the practicum framework for green economic sectors and developing conventional green financial markets is necessary to create a foundation for green banking development in the future.

Central Bank Operations Under Foreign Exchange Accumulation: The Case of the Macedonian Central Bank (2005–2022)

ABSTRACT The present article analyses the balance sheet composition and the evolution of the operational framework of the Macedonian central bank. It shows that the compensating movements on its balance sheet could not be attributed exclusively to domestic liquidity management operations, as in the absence of substantial foreign currency inflows, the central bank has increased foreign reserves through the proceeds arising from the issuance of government bonds denominated in foreign currency on international financial markets. Despite retaining some of the characteristics of a currency board, the absence of a strict commitment to such a regime has allowed the central bank to employ a range of instruments of domestic liquidity management and to maintain relatively tight control over its policy rate. The level of the policy rate under a rigidly fixed exchange rate parity meant to be sustained over time, would however continue to depend on the ability of the authorities to ensure a sufficient level of foreign exchange reserves.

Semi-supervised human action recognition via dual-stream cross-fusion and class-aware memory bank

Human action recognition, a crucial task for understanding complex human behavior from sensor data, faces significant challenges. This study specifically addresses two of these challenges: the complex interplay between joint positions and their velocities in action data, and improving model generalizability in the context of limited labeled data. To this end, we present the dual-stream cross-fusion and class-aware memory bank (DSCF-CAMB) framework, a novel semi-supervised approach. It employs a dual-stream cross-fusion (DSCF) mechanism to independently encode joint and velocity data streams, and through cross-fusion, enriches the action representation by exploring correlations between joint positions and their velocities. Meanwhile, to address the challenges posed by unlabeled data, we have developed a contrastive loss based class-aware memory bank (CAMB) that carefully selects high-confidence positive and negative sample embeddings and filters out potential noise-contributing samples. This strategy significantly improves the robustness and accuracy of the framework in action recognition. The experimental results show that our method outperforms the state-of-the-art methods by an average of 2.7% and 1.5% in top-1 accuracy on the renowned NTU RGB+D and NW-UCLA datasets, respectively, demonstrating the superiority of our method in human action recognition.

Personal Financial Data Sharing Mechanisms within the Open Banking Framework

Personal Financial Data Sharing Mechanisms within the Open Banking Framework

AN APPRAISAL OF THE REGULATION OF DIGITAL BANKS IN NIGERIA

The advent of the computer age saw industries across the world hopping on the Information and Communications Technology train in a bid to survive. The financial industry is no exception, having since incorporated Information and Communications Technology in its operations. Traditional financial institutions like banks now utilize technology to render financial services to their customers. Aside the traditional banks, a new class of banks called digital banks has emerged in recent times in Nigeria, examples include Kuda, Aladdin, and VBank. These banks operate without a physical banking hall and render their services digitally. Although digital banks were not originally included in Nigerian laws, these banks now have the backing of the principal legislation regulating banks in Nigeria: the Banks and Other Financial Institutions Act 2020, hence solidifying their place in the Nigerian financial sector. With the aim of evaluating the effectiveness of the extant legal framework for digital banks in Nigeria, this paper explored the evolution of banking in Nigeria, the emergence of digital banks, the pros and cons of such banks as well as the existing legal framework for digital banks in Nigeria. The research methodology adopted is the doctrinal research methodology and primary sources like statutes, guidelines and case laws as well as secondary sources like textbooks and journals were utilized. The paper found that the existing legal framework for digital banks in Nigeria is fragmented and does not sufficiently address the uniqueness of these banks. It recommended the development of a comprehensive legal framework for digital banks in Nigeria, which incorporates a licensing regime solely for digital banks.

Elevating Service Design and Customer Experience: Customer Value Proposition Validation and Design for New Digital Bank “Bank S” in Indonesia

Purpose: This thesis aims to provide a comprehensive framework for digital banking in Indonesia, highlighting the strategic importance of integrating business strategy and marketing to achieve competitive advantage in the digital era. Digital banking has become essential to Indonesia's financial industry, as it offers convenient and efficient solutions to customers. Banking institutions in Indonesia must understand the strategic framework required to gain a competitive advantage in the digital banking landscape. Method: This thesis explores the Elevating Service Design and Customer Experience: Customer Value Proposition validation and Design for New Digital Bank “Bank S” in Indonesia’s digital banking context. Result: This study examines the impact of digital transformation on banks’ competitive advantage by examining how emerging technologies, such as Artificial Intelligence, blockchain, cloud computing, and data science, drive innovation in the sector. Additionally, this study investigates how banks leverage multi-channel delivery, particularly mobile banking, to offer cost-effective services and enhance customer experience. Finally, it analyzes the role of trust and security in promoting the customer adoption of digital banking services. Conclusion: The findings from this study contribute to understanding the strategic approaches that banks in Indonesia can adopt to gain a competitive edge in the digital banking landscape.

Normative Review of Economic Democracy In The Indonesian Sharia Banking Legal Framework

This research is a normative review of economic democracy within the legal framework of Indonesian sharia banking. In this context, this article aims to explore how the principles of economic democracy are reflected in the legal regulation of Islamic banking in Indonesia. The research method used is a normative approach involving a literature review and legal analysis of sharia banking regulations in Indonesia. The research results show that bank regulations in Law no. 7 of 1992, Law no. 10 and 21 of 1998, as well as other regulations, consistently promote democratic principles in Indonesia's national financial system. The Indonesian sharia banking institutional system which began in December 1983 marked an important first step in integrating sharia principles into the national banking system. Apart from that, the importance of the prudential principle in regulating sharia banking in Indonesia is also emphasized in this research. The precautionary principle aims to ensure that banks operate legally and in accordance with the principles of sharia law, as well as to protect consumer interests. This research provides valuable insight into how economic democracy is reflected in Indonesia's Islamic banking legal framework. The implications of these findings can be used to increase understanding of the importance of economic democracy in building an inclusive and sustainable financial system in Indonesia.

External Shariah auditing in Islamic banks: what do internal auditors think?

Purpose This study aims to investigate the pragmatic issues on the radical call for the establishment of an external Shariah auditor (ESA) in the governance framework of Islamic banks (IBs). Design/methodology/approach From 11 well-established Malaysian IBs, 16 internal auditors were interviewed to provide an in-depth understanding on how ESA can provide greater assurance to stakeholders in Malaysian IBs. Findings This study reported mixed acceptance from internal auditors on the proposed additional governance layer to be undertaken by the ESA. Generally, internal auditors reluctantly agreed that Shariah auditing by the ESA would enhance the quality of Shariah assurance but maintain several practical concerns regarding lack of guidelines on Shariah auditing, the additional cost to be borne by IBs and the possible tensions between the ESA and Shariah board (SB) amid the diverse Shariah interpretations available for experts in the field. Practical implications The critical point on the manifestation of an ESA in the contemporary IB practice brought by this study highlights the need for regulation and policy promulgation that embrace a comprehensive approach to Shariah audit process within the religio-ethical dogma of Islamic banking and the pragmatic approach to banking. Originality/value This study provides evidence on the expected role and competency of an ESA and explores the implications produced by its implementation in Malaysian IBs. This study also clarifies how IBs should delineate the role of Shariah assurance from SB to ESA.

Operational efficiency in the presence of undesirable byproducts: an analysis of Indian banking sector under traditional and market-based banking framework

PurposeIn the backdrop of an increase in market-based banking activities, this paper aims to study operational efficiency of Indian banking sector during 2009–2010 through 2017–2018 considering Capital Gain and Gain from Forex Market (as desirable outputs) and Slippage (as undesirable byproducts) simultaneously, along with Advances – a desirable output considered in the traditional banking performance assessment literature. This enables to have an assessment of performance (as captured by the measured efficiency scores) of Indian Banks following an alternative viewpoint about the banking activities. The authors also explain such efficiency scores in terms of bank-specific factors, banking industry competition scenario and interest rate channel.Design/methodology/approachUsing data envelopment analysis (DEA) method, the authors estimate six alternatives but interlinked operational efficiency scores (TES) of the Indian domestic commercial banks. In the second stage, they explain such TES in terms of bank-specific factors, banking industry competition scenario and interest rate channel.FindingsThe authors observe that the private sector banks as a group outperform those under public ownership. Moreover, although the private sector banks could maintain somewhat consistency in their operational efficiency performance over the sample period, public sector banks clearly show a declining tendency. The second stage econometric estimation results show that the priority sector lending has a negative effect on efficiency. Interestingly, the authors get varying results for the relationship between maturity and efficiency score depending on banks’ strategies on stressed assets management. Furthermore, the analyses result that banks are not so efficient in managing relatively larger-volume loans. It is also observed that banks’ efficiency positively depends on the Credit-to-Deposit (CD) ratio. It is found that the overall operational efficiency of the banks to manage their credit risk portfolio improves with a reduction in the lending rate (LR). However, the interaction of lending activities and capital market shows that with the increase in LR, corporate borrowers may switch to capital market to explore for desired funds, which may induce the banking sector to investment in capital markets and create a positive market sentiment.Originality/valueLiterature, although scanty, is there dealing stressed assets of a bank as some undesirable byproducts of its operational and business activities. However, such literature mostly done within the traditional framework of banking business activities and modern market-based business activities are almost absent in the literature. The authors have done it in the present study.

Strategic Management Practices and Customer Retention: The Role of Technology of Tier 1 Banks in Nigeria

The capability of corporate financial organisations to set its vision within the frontiers of achievable objectives is crucial for long term effectiveness. Hence our focus on strategic management practices and customer retention in tier-1 banks in Nigeria; leveraging on the place of technology. The study further aims to deepen the relationship between the dimensions of strategic management and the measures of customer retention, while bringing to bear on the relationships the impact of technology within the financial space. The study utilized cross-sectional survey research based stratified sampling; where data collection from 248 employees of six tier-1 banks in Port Harcourt were conducted. The Spearman Rank Correlation Coefficient was deployed with the aid of the Statistical Package for Social Sciences (SPSS) version 26 for our analyses. The result showed strong and positive correlation coefficient (r = 0.649) between strategy formulation and customer loyalty; also positive and a significant relationship existed between strategy formulation and customer satisfaction; a positive and significant relationship existed between strategy implementation and customer satisfaction; significant relationship between strategy evaluation and customer loyalty, and a significant relationship subsisted between strategy evaluation and customer satisfaction . But, technology significantly moderates the relationship between strategic management and customer retention. It was however recommended that the management of tier-1 banks in Nigeria should adopt recent technologies to improve services and provide more value to its customers. With technology, tier-1 banks can effectively and efficiently implement strategic management in order to increase customer retention. Managers should focus on integrating the appropriate technology that will improve its operation and ensure efficient service delivery. The adoption of strategy formulation by tier-1 banks in Nigeria should emphasize assessing existing strategies and the environment before developing new strategies and strategic plans. The strategy formulation process provides a framework for tier-1 banks to take the actions leading to the anticipated results. Keywords: Tier-1 banks; Strategic Management Practices; Bank; Customer Retention

The Integration of Fintech into the banking sector

The banking sector has undergone significant transformations with the integration of financial technology (fintech), reshaping traditional banking operations and customer experiences. This research paper explores the evolution of fintech integration into the banking sector, assesses its current landscape and explores its future prospects, opportunities, potential and emerging technologies. The paper begins by providing an overview of the fintech revolution and its impact on banking, highlighting key drivers such as digitalization, consumer demand for convenience, regulatory changes, and technological advancements. It examines how fintech solutions have revolutionized banking operations, including digital banking platforms, payment solutions, data analytics, AI-driven insights, blockchain applications and robotic process automation (RPA). Through an analysis of current trends and empirical studies, the paper delves into the future prospects of fintech in banking, emphasizing its role in expanding financial inclusion, enhancing customer experiences, improving regulatory compliance and fostering collaboration between banks and fintech startups. It explores the role of open banking frameworks, cloud computing, Internet of Things (IoT), biometric authentication and regulatory technology (regtech) in shaping the future of banking. Furthermore, the paper examines the challenges and barriers hindering the widespread adoption of fintech in banking, such as regulatory uncertainty, cybersecurity risks, legacy infrastructure constraints, data privacy concerns and talent shortages. It identifies untapped areas and opportunities for fintech innovation, including small and medium-sized enterprises (SME) lending, wealth management, insurance, trade finance and rural banking. Through a comprehensive analysis of industry trends, regulatory developments and technological innovations, this research paper provides insights into the transformative potential of fintech in the banking sector. It concludes with recommendations for banks, policymakers and stakeholders to capitalize on the opportunities presented by fintech integration, navigate regulatory challenges and leverage emerging technologies to drive innovation, growth and competitiveness in the digital banking era.

Khuôn khổ giám sát rủi ro tài chính liên quan đến biến đổi khí hậu của Ngân hàng Nhà nước Việt Nam

Climate change is happening rapidly and poses a significant risk to the global economy. International organizations have issued many regulations to manage and supervise climate-related financial risk (CRFR) to ensure the financial system’s safety. This paper uses the content analysis method to evaluate the CRFR monitoring framework of the State Bank of Vietnam compared with the Basel Committee on Banking Supervision. The results show that the CRFR supervision framework in Vietnam is still under development; the regulations and guidelines are not specific and not yet in line with the international framework, such as not clearly defining the responsibilities of senior management in CRFR monitoring, not providing guidance on the implementation, evaluation, and monitoring of the results of scenario analysis and stress testing on the resilience of banks to climate change, not clearly announcing the monitoring objectives and improving the quality of supervisors, and not requiring financial institutions to disclose information related to CRFR.

Digital Money Services, Regulatory Framework and Performance of Women Owned Table Banking Schemes in Kenya

The global imperative to strengthen gender equity, equality, and foster a social-solidarity-based economy serves as a driving force for achieving sustainable development that caters to the needs of all individuals. The identified barriers of insufficient capital and limited decision-making capacities emerge as primary obstacles, hindering the swift progress towards crucial development milestones. Addressing these challenges becomes essential for empowering women in financial endeavors, allowing them to leverage the benefits of digital money within table banking frameworks, thereby contributing to the broader goals of sustainable and inclusive development. The purpose of this study was to analyze the impact of digital money services, regulatory frameworks on the Performance of Table Banking among Women in Kenya. This study was anchored on Innovation Diffusion Theory and the Modern economics theory. This study primarily employed a qualitative methodology, specifically opting for a systematic literature review, commonly referred to as desktop research. The findings revealed that the adoption of digital financial services, particularly mobile money, significantly contributes to women's economic empowerment through table banking initiatives. Notably, mobile money facilitates faster transfers, broad risk-sharing, improved privacy, enhanced decision-making, and improved savings balances. The evidence consistently highlighted enhanced financial control, improved savings, improved credit and access to entrepreneurial opportunities. This collective insight underscores the pivotal role of digital payments in positively shaping the landscape of women's financial inclusion and empowerment within the context of table banking initiatives. To harness these benefits, stakeholders in table banking initiatives should prioritize the adoption and integration of digital money platforms, ensuring that rural women have the necessary resources and knowledge to leverage these technologies for their financial advancement. The stakeholders, including financial institutions and policymakers, should actively promote digital literacy programs tailored for women owned table banking schemes in Kenya.

Green banking laws and regulations in Mauritius: a comparative study with other countries’ policies

PurposeFinancial institutions, including banks, have their responsibilities to contribute towards the preservation of the environment. Green banking is an emerging concept that involves eco-friendly initiatives by banks and although Mauritius lacks a comprehensive regulatory framework for green banking, there exists a few green regulations and guidelines. Accordingly, the purpose of this study is to critically analyse the existing legal and regulatory framework on green banking in Mauritius. It is expected that this study will showcase the need for some more robust and proper green banking legal and regulatory framework in Mauritius.Design/methodology/approachTo achieve the research objective, a black-letter analysis is used to analyse the existing regulatory framework in Mauritius. Moreover, a comparative analysis of the current legal frameworks on green banking in countries like Bangladesh, Indonesia, Pakistan and the UK is carried out.FindingsThis study recommends the establishment of a guideline or legal framework for green banking, a Sustainable Finance Policy, a legal binding framework for issuance of bonds, adoption of a Task Force on Climate-related Financial Disclosure guideline, compulsory environmental reporting and disclosures and a green standard rating.Originality/valueTo the best of the authors’ knowledge, this research is among the first literature on green banking laws, especially in the context of a developing country being Mauritius, and it is anticipated that the findings are of use not only to academics but also to the wider community in general.

Comparative analysis of accounting standards in the Islamic banking industry: a focus on financial leasing

Purpose This study aims to evaluate Islamic bank compliance with the accounting and auditing organisation for Islamic financial institutions (AAOIFI), assess the impact of multiple accounting standards in Islamic banking, examine the need for private accounting standards and assess international financial reporting standards (IFRS) compatibility with Islamic banking and analyse financial leasing accounting in Islamic banking compared to IFRS 16. Design/methodology/approach A combination of comparative theoretical analysis, physical examination, and semi-structured interviews has been used as a research methodology. These methods are interconnected and complement each other to provide a comprehensive approach to address the research questions. Findings Islamic banks in various countries show varying compliance with AAOIFI accounting standards. Some fully comply, while others adopt a hybrid approach combining AAOIFI and IFRS. Differences in accounting treatments can result in conflicts, asset inflation and financial statement discrepancies. Challenges and criticisms faced by AAOIFI standards include violating the matching principle and lacking faithful representation. Collaboration among academics, standards-setting bodies and organisers is crucial for guiding the reporting of Islamic financial statements. Practical implications The research identifies gaps in implementing Islamic accounting standards and proposes strategies to enhance compliance, improve performance and increase transparency in Islamic financial institutions. It highlights the importance of a harmonised and universally accepted accounting framework for Islamic banking, considering the compatibility between IFRS and Islamic principles. Social implications Social implications have arisen regarding the global acceptance of Islamic finance, which leads to an increase in socially Islamic finance exchange. Originality/value This research examines the consequences of using multiple accounting standards in the Islamic banking industry and discusses the need for private accounting standards and compatibility with IFRS.

RECOMMENDATIONS FOR ENHANCING INTERNAL CONTROL MECHANISM OF COMMERCIAL BANKS WITH A CASE IN THAI NGUYEN

Objectives: The objective of this paper is to present solutions and suggestions for enhancing the control mechanism of commercial banks, with a specific case study conducted in Thai Nguyen. In light of the increasing demand for bank risk management, this study aims to propose strategies to improve and develop more effective control solutions.
 
 Methods: Efforts will be made to organize and integrate risk management datasets into an effective Management Information System (MIS) or bank core system. Additionally, this study will emphasize the integration of risk management and monitoring activities as crucial components of a robust internal control system. By doing so, managers will be equipped to maintain effective internal control functions over time.
 
 Results: The results of this study are yet to be determined. However, it is anticipated that the proposed solutions and suggestions will contribute to enhancing the control mechanisms of commercial banks, particularly in the context of risk management. By integrating risk management datasets and activities into the internal control system, banks may experience improved efficiency and effectiveness in managing risks.
 
 Conclusion: In conclusion, the integration of effective risk management practices within the internal control framework of commercial banks is essential for ensuring stability and resilience in the face of financial uncertainties. This paper underscores the importance of proactive measures in enhancing control mechanisms, particularly in the context of evolving banking landscapes. Through the implementation of the proposed solutions, banks in Thai Nguyen and beyond may fortify their risk management practices and bolster overall operational resilience.