Financial Framework Research Articles

“A good client gets arrested a lot”: Constructing and maintaining profitable subjects through marking and surveillance

Criminal legal processing is an arduous classification, supervision, and extraction cycle increasingly administered by private entities. This article spotlights processing within commercial bail and uncovers profitable subjects—people (re)identified as future assets—as a stratifying and elusive construction with implications for criminal legal experiences. Bail agents deploy marking and surveillance like other legal professionals to process people. However, a profit objective and financial risk framework give rise to distinct applications. First, a shift in marking occurs in which legal involvement operates as credit and stratifies people into “classification situations” where they unevenly, and sometimes counterintuitively, access resources. Second, marked individuals are matched to different forms of surveillance that deviate in the degree of felt hassle and punishment. Surveillance is used for people to repeatedly prove their profitability in an environment where a dominant perception is that defendants are liabilities. Consequently, few can avoid the conditions that define their varying and unequal experiences.

Developing a framework for housing financing: a case study of Nigeria’s sustainable low-cost housing via soft system methodology

PurposeSeveral governments in developing countries have attempted via policies and programmes to improve access to low-cost housing (LCH) finance for low-income house owners, but sustainability has been an issue. Therefore, sustainable LCH (SLCH) financing framework may mitigate issues hindering LCH financing sustainability in developing countries. There is a paucity of studies about SLCH financing through a framework in Nigeria. Thus, the study investigated the barriers facing low-income earners (LInEs) accessing SLCH finance and developed a framework for promoting Nigerian SLCH financing.Design/methodology/approachThe research employed a soft system methodology (SSM) to understand Nigeria’s LCH financing sustainability. The adopted method permitted a substitute to enhance LCH financing sustainability part way through a developed framework. The study conducted interviews across seven cities in Nigeria with selected practitioners.FindingsThe results were presented using the SSM seven steps. Findings reveal the state and barriers facing LInEs in accessing SLCH finance. Also, findings show that there is a need for a finance framework. It would improve sustainability, especially for intending low-income house owners across Nigeria’s cities. Findings include a framework to reposition LCH financing sustainability to promote homeowners for intending low-income house owners across Nigeria’s cities.Originality/valueBesides the developed LCH financing sustainable framework, housing policymakers and developers can employ SLCH financing to improve low-income intending house owners in Nigeria. This may be the first study to develop a SLCH financing framework using SSM in a developing economy.

Protecting American investors in emerging markets: A comparative study

Emerging markets provide significant opportunities for American investors, but they also carry substantial risks, including political instability, regulatory unpredictability, and currency volatility. This comparative study examines the key challenges faced by American investors in emerging markets such as Brazil, India, and China, focusing on strategies and legal mechanisms available to protect their investments. The paper explores the role of bilateral investment treaties, which provide a legal framework ensuring fair treatment, safeguards against expropriation, and recourse through international arbitration. Additionally, the study evaluates the effectiveness of U.S. regulations such as the Foreign Corrupt Practices Act, which has helped reduce corruption risks but can create challenges in high-risk markets. Drawing on economic and legal data, this article proposes several policy recommendations to enhance protections for American investors, including the expansion of bilateral investment treaties and the strengthening of international arbitration mechanisms. Ultimately, this study underscores the need for robust legal and financial frameworks to foster investor confidence and promote stable growth in emerging markets.

Islamic Finance as a Crisis-Resilient Framework

The Global financial crisis (GFC) or “the crisis” exposed significant weaknesses within the global financial system, largely stemming from financialization activities. This research paper explores the potential of Islamic finance (IF) principles to prevent financial crises while offering a more stable and equitable financial framework. A qualitative approach was adopted, involving interviews with various professionals in the IF field to explore the ethical and practical distinctions between conventional finance and IF. Key findings reveal the resilience of Islamic banks during the crisis can be attributed to their adherence to Shari’ah principles, which prohibit interest (riba), excessive uncertainty (gharar), and speculative activities (maysir). The study emphasizes the advantages of asset-backed financing and profit-sharing models, which align financial activities with the real economy, thereby fostering long-term stability. By highlighting the practical benefits of the ethical framework underpinning IF, this research contributes to the broader discourse on financial crisis prevention.

Lesson for Vietnam to Learn from Asian Countries’ Financial Instruments for Railway Projects

The development of Vietnam's railway infrastructure faces challenges in securing adequate funding and attracting private sector investment, which necessitates innovative financial strategies. This study aims to propose a comprehensive financial framework tailored to address these challenges. The research employs a comparative analysis method, examining financial instruments used in railway projects across several Asian countries, including Laos, Indonesia, Hong Kong, Japan, Singapore, Taiwan, South Korea, and China. The findings reveal two key insights: (1) integrating railway infrastructure development with Transit-Oriented Development (TOD) and Land Value Capture (LVC) mechanisms significantly boosts government revenues through property development aligned with TOD and LVC principles; (2) diversifying revenue sources—such as fare revenues, property development, and government subsidies—is crucial for ensuring the financial sustainability of Public-Private Partnership (PPP) railway projects and reducing associated risks, thereby encouraging private sector involvement. The proposed framework provides actionable strategies for Vietnam's specific context, offering implications for policymakers to enhance the viability of railway infrastructure projects through innovative financial models.

A Comparative Study of the Bank Supervisory Systems of China and the United States from an International Perspective

This research delves into a comprehensive analysis of the banking regulatory systems of China and the United States, highlighting both the convergences and divergences. It aims to understand the profound implications these systems have on the global financial landscape. Recognized as economic powerhouses, the financial regulatory frameworks of these nations are pivotal for ensuring stability and fostering sustainable economic growth. Utilizing empirical data and descriptive methodologies, this paper presents a detailed comparative analysis of the historical progression, underlying philosophies, policy mechanisms, and market reactions of the banking regulations in both countries.Key findings reveal that the United States banking regulatory structure is distinguished by its robust legal framework and industry-specific regulation, while China's system is characterized by its macro-prudential oversight and coordinated financial regulatory mechanisms. The evolution of these regulatory architectures not only charts the financial development path of each nation but also mirrors their economic structures' idiosyncrasies. In terms of strategy, the United States prioritizes regulation's binding nature and the market's self-regulatory capabilities, whereas China reinforces the central bank's leadership within its regulatory framework. The study concludes that an efficient regulatory structure should be tailored to fit the unique context of each country, balancing regulatory rigor with market agility. It suggests that China could benefit from the United States's regulatory insights while upholding its regulatory strengths. The insights contribute to the development and refinement of global financial regulatory policies and serve as valuable references for addressing financial market challenges.

Enterprise intrinsic value analysis based on traditional financial analysis framework

Stocks are the most modern way to make money, and the most important factor of investing in stock its time, in today’s life a lot of investors just relax and stay at home knowing that they are making money just by waiting. But there are also important concepts that an investor should know like: the concept of risk and reward which is fundamental in making choices, and patience with also a grown up personality because many investors aren’t very practical and puts every thing they have into a single stock, and if they start to win they will continue to wait fro bigger rewards but a lot of the times a stock can go from 100 dollars and become 50 dollars in minutes so being conscious and satisfied of what they win is essential, and to not regret made decisions. Through a series of investments, this paper finally finds out which enterprises have relatively more investment value among several enterprises, which is not only the overall investment value, but also the long-term and short-term strategies.

A Financial Fraud Prediction Framework Based on Stacking Ensemble Learning

With the rapid development of the capital market, financial fraud cases are becoming increasingly common. The evolving fraud strategies pose significant threats to financial regulation, market order, and the interests of ordinary investors. In order to combine the generalization performance of different machine learning methods and improve the effectiveness of financial fraud prediction, this paper proposes a novel financial fraud prediction framework based on stacking ensemble learning. This framework, based on data from listed companies, comprehensively considers financial ratio indicators and non-financial indicators. It uses the stacking ensemble technique to integrate numerous base models of machine learning algorithms for predicting financial fraud. Furthermore, the proposed framework has high versatility and is suitable for various tasks related to financial fraud prediction, addressing the problem of model selection difficulties in previous research due to different scenarios and data. We also conducted case studies on specific companies and industries, confirming the significant interpretability and practical applicability of the proposed framework. The results show that the recall rate and Area Under Curve (AUC) of our framework reached 0.8246 and 0.8146, respectively, surpassing mainstream machine learning models such as XGBoost and LightGBM in existing studies. This research study is of great significance for predicting the increasing number of financial fraud cases, providing a reliable tool for financial regulatory institutions and investors.

Climate Change as a Business Risk: An Indonesian Banking Industry Perspective

Climate change has emerged as a new business risk that must be carefully evaluated, forecasted, mitigated and managed by all corporate organizations, including banks. Climate change has a profound effect on finance and business continuity, so all sectors, including the financial industry, must plan for it. In June 2022, the Basel Committee on Banking Supervision (BAS) announced general principles for banks around the world to manage and supervise climate change risks, entitled “Principles for the Effective Management and Supervision of Climate-Related Financial Risks”. Managing Climate-Related Financial Risks requires an acceptable management structure and information tools that can be used by banks to monitor, measure and manage asset portfolios affected by Climate-Related Financial Risks. In addition, this research also aims to assess the readiness of Indonesian banks in implementing an effective BCBS management framework for climate change-related financial risks. This research utilizes a qualitative research type. The research methodology used in this study is to use in-depth and semi-structured interviews to obtain narratives and subjective reflections from the participants. The main purpose of the interviews was to uncover significant meanings and structures inherent in their professional experiences. By using a sample method involving regulators and selecting banking executives who specialize in risk management. The results of this study provide an explanation of the perspective of Indonesian banks in dealing with business risks due to climate change, OJK's policies related to banking risk management due to climate change, OJK's response to the possibility of adopting an effective management framework for financial risks related to climate change developed by the BCBS in terms of, Bank Indonesia's Perspective on the Integration of Climate Risk into Macro Prudential Supervision, Impact on Financial Stability and Economic Resilience, and Policy Recommendations, and Banks' readiness to implement an effective financial risk management framework for financial risks related to climate change based on the risk management framework developed by the Basel Committee on Banking Supervision (BCBS).

Barriers to obtaining cohesion policy funds from the perspective of municipalities that received the least funding under the 2014–2020 budget period

Cohesion policy is one of the most important European Union’s policy.The lack of cohesion between states and regions would not only result in less-than-optimum use of the endogenic potential of the EU, but it might also threaten the existence of the common market, and thus, the whole European integration. This problem has become particularly evident after the enlargement of the European Union by 10 new Member States in 2004. It is therefore justified to study the effectiveness of this policy and the barriers that accompany it. The aim of the study was a qualitative analysis of problems in obtaining funding by communes that received the least EU funds in the 2014–2020 financial framework. The study was conducted using the CAWI method. The text presents and discusses the results of the study, which allowed, among others, to confirm the still persistent problem with generating own contribution for most local government units.

The U.S. Response to China’s Belt and Road Initiative

Since the Trump administration, an important part of U.S. policy of containing China has been its response to the Belt and Road initiative. The article reveals the American perspective on the main challenges that the Chinese initiative poses and characterizes Washington’s response. Washington’s actions included, but were not limited to, reorganizing U.S. development agencies to create a strong and flexible institutional framework for foreign infrastructure financing, supporting American businesses as they enter global markets, consolidating the efforts of like-minded countries to create an alternative to the Belt and Road (e.g. the “Build Back a Better World” initiative, which transformed into the Global Investment and Infrastructure Partnership), and the promotion of economic corridor projects.

Study of Regulatory and Institutional Framework for the Relocation of the National Capital in Indonesia

The plan to relocate Indonesia's capital city (IKN) is rooted in the integrative ideology articulated by Soepomo in 1945. This ideology emphasizes harmony between the macrocosmic and microcosmic forces within the state, supporting the idea that the government center should be situated in the middle of the territory to symbolize supreme authority. Furthermore, the relocation policy is seen as a symbol of entering a new era towards "Indonesia Emas 2045" (Golden Indonesia 2045). However, the enactment of Law No. 3 of 2022 on IKN as a legal basis has faced criticism from various scholars, particularly regarding regulations, institutional frameworks, and funding. Previous studies are considered lacking in their discussion of the capital relocation, especially in addressing the rules of policy implementation. As a result, some earlier research tends to be opinion-based without considering the quality of scientific approaches. This study aims to analyze the policy of relocating the capital city from regulatory and institutional perspectives, with the main contribution being for the government and civil society to evaluate the policy. Generally, this is a normative legal study with a statute approach and a conceptual approach. This research focuses on investigating the regulatory and institutional frameworks, striving to answer the standard of "policy implementation rules" comprehensively. However, this study is limited in its discussion of the funding framework. The findings of this research highlight the relocation policy, both in terms of process and implementation. Overall, the relocation and administration of the new capital (IKN) offer significant benefits, although there are instances of violations or conflicts with existing regulations and institutional frameworks.

The Integration of Large Language Models in Financial Services: From Fraud Detection to Generative AI Applications

This comprehensive article examines the transformative impact of artificial intelligence in the financial services sector, focusing on the evolution from traditional applications to advanced AI systems. Through systematic analysis of implementation frameworks and regulatory considerations, this article demonstrates the sector's technological leadership, evidenced by a 56% higher AI implementation success rate compared to other industries. The article reveals how Large Language Models have revolutionized customer interactions, achieving 92% query resolution accuracy and 89% improvement in user engagement. Documentation and compliance processes have been transformed through AI automation, demonstrating an 82% improvement in real-time compliance monitoring and 89% enhancement in automated reporting accuracy. Financial institutions' established regulatory frameworks and mature governance structures have enabled superior technology integration, with an 82% cloud adoption rate and 85% risk management effectiveness. The article’s analysis of software development infrastructure shows significant advancement, with a 73% improvement in deployment frequency and 82% enhancement in code quality metrics. The article highlights how financial institutions' robust regulatory expertise provides a significant competitive advantage, demonstrated by 89% security compliance and 76% stronger compliance protocols. Drawing from comprehensive industry analyses and empirical evidence, this article contributes to the growing body of literature on AI implementation in regulated industries while providing practical insights for organizations balancing innovation with compliance requirements.

Green Financing for SMEs in Bangladesh by developing an Integrative Islamic Crowd Funding Framework

In several Muslim nations, such as Pakistan, Malaysia, and Indonesia, Islamic crowd funding is a relatively new phenomena. It gives business owners a Shariah-compliant way to raise capital for their ventures. There are a few crowd sourcing sites in Bangladesh, however they don't do much. Bangladesh, a country with a large Muslim population, has not yet developed a sizable crowd funding platform. According to the World Bank Productivity and Investment Climate Survey, access to finance is among the key challenges faced by SMEs in Bangladesh. Loans from banks are the predominant source of finance for small and medium enterprises and it can satisfy up to 80 per cent of SME capital needs. However, past studies have discussed the struggle of SMEs with access to finance from the banking sector. Lack of access to finance acts as a driver for other key challenges faced by an SME and diminishes its growth opportunities.

Strategic financial management framework to ensure performance and growth for small to medium entrprises

Zimbabwe’s Small to medium enterprises (SMEs) face worsening performance and growth-related challenges attributable to failure by owner managers to embrace Strategic Financial Management (SFM) practices capable of promoting business growth and performance. SMEs became the main contributor to the gross domestic product following the collapse of the economy due to the government’s agrarian reform of 2000. Using the quantitative design, the study investigated SFM practices by SMEs towards developing a SFM framework for Zimbabwe’s SMEs. The study revealed that SMEs lacked a conceptual framework that ensures growth despite having a clear focus and vision. Drawing from empirical data and critical review of relevant theories, the study developed a strategic financial management framework for SMEs in Zimbabwe. The framework has relevance for SMEs in Zimbabwe and other neighboring countries as they promote SMEs growth and performance.

Climate Risk and Its Impact on the Cost of Capital—A Systematic Literature Review

As climate change intensifies the frequency and severity of its adverse events, there is growing concern about its impact on the economy, particularly in financial markets and corporate financial management. This study addresses this gap through a systematic literature review in Scopus according to the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) method, aiming to analyse how climate risk affects the Weighted Average Cost of Capital (WACC) and, consequently, corporate investment and financing decisions. The findings reveal that companies with negative environmental profiles face higher capital costs and loan interest rates. The cost of capital is crucial in the fight against climate change, highlighting the need for sustainable financial policies and investments. Therefore, it is essential to implement policy interventions that reduce these costs, which requires a radical transformation of existing financial frameworks, the promotion of innovative instruments, and the strengthening of financial markets through an integrated approach that links climate finance with economic and social development.

Data and service management of the EPOS Volcano Observations Thematic Core Service by the European volcanological community

The Volcano Observations Thematic Core Service (VOLC-TCS) is one of ten core services forming the European Research Infrastructure Consortium for the European Plate Observing System (EPOS ERIC). The main objective of the VOLC-TCS is the implementation of a technical, financial, and legal framework compliant with EPOS ERIC to (i) strengthen the European volcanology community represented by Volcano Observatories (VOs) and Volcanological Research Institutions (VRIs), and (ii) provide virtual access to the community’s data, data products software and services (DDSSs) from volcanoes in Europe and European overseas territories. The efforts of the VOLC-TCS community began prior to the appointment of EPOS as an ERIC and have followed a long-term work plan that started in 2002. One of the main challenges for the management of volcanological data has consisted in their great heterogeneity regarding technical characteristics and also legal aspects (e.g. different data policies among the data providers, different purposes for the use of data, ranging from science to monitoring, early-warning and crisis response, and communication and outreach). Another challenge has derived from the consistency of the VOLC-TCS’ products with the overall service provision of EPOS, which merges services from different Earth Science communities (seismology, GNSS, geomagnetic, geochemistry, geology, etc.). Some of the services used in volcanology are in common with the other communities, thus the implementation work was also devoted to harmonising the data and products with standards defined by other TCSs. Yet another important task has been the implementation of the community Gateway to expose and enable access to services not fully compliant with EPOS, or to services implemented by institutions outside the EPOS perimeter, as well as to create a platform that can act as an interface between the VOLC-TCS and data infrastructures operating at a global level (e.g. WOVOdat). Based on the experience gained and the results achieved, we report here on the state of the art of the VOLC-TCS implementation since 2018 and propose future actions to address some of the main technical challenges and measures to ensure mid-to-long term sustainability of the services.

Price dynamics with circuit breakers

We model the dynamics of an asset price in the presence of a circuit breaker. A circuit breaker is a trading halt imposed by the exchange after the price drops below (or rises above) a pre-specified value within a trading session. The investors' anticipation of the probability of a halt feedbacks on the price process. In a general stochastic financial framework, this leads to coupled integral and stochastic differential equations. With first-order analytical solutions and numerical treatment, the theory predicts an increased price volatility prior to the trigger point, as has been reported in the empirical literature. We show that the sole existence of a circuit breaker leads to the adverse effect of attracting the price to the circuit breaker level (known as the ‘magnet effect’). We then propose first steps towards a more robust design of circuit breakers. In particular, we show that a trading halt that is conditioned on a pre-specified volatility level, instead of price level, mitigates the negative side effects of increased volatility. The methodology proposed in this article serves as starting point for the design of more resilient circuit breaker mechanisms.

Real-time Detection of Abnormal Financial Transactions Using Generative Adversarial Networks: An Enterprise Application

This paper presents a novel real-time financial fraud detection framework utilizing Generative Adversarial Networks (GANs) for enterprise applications. The proposed system addresses critical challenges in fraud detection, including class imbalance, real-time processing requirements, and enterprise scalability. Implementing a sophisticated multi-layered architecture, the system integrates advanced preprocessing techniques with an optimized GAN model explicitly designed for fraud pattern recognition. The framework incorporates parallel processing capabilities and adaptive batch processing mechanisms to maintain high throughput while ensuring sub-second latency. The experimental evaluation uses a subset of the European Credit Card Transaction dataset, comprising 50,000 transactions with a balanced representation achieved through strategic sampling and SMOTE technique. The proposed model achieves 97.8% accuracy, 96.5% precision, and 95.8% recall, demonstrating competitive performance compared to traditional machine learning approaches. Real-time performance analysis shows consistent sub-100ms latency while maintaining robust performance under varying load conditions. The system demonstrates linear scalability up to 32 nodes, with high availability and failover capabilities. The comprehensive assessment validates the framework's effectiveness in enterprise environments, providing practical solutions for financial institutions facing evolving fraud challenges. This research contributes to the advancement of financial security technology through the innovative application of adversarial learning in fraud detection.

Time-Varying Spillover Effects of Carbon Prices on China’s Financial Risks

As China’s financial markets become increasingly integrated and the carbon market undergoes financialization, the impact of carbon emission price fluctuations on financial markets has emerged as a key area of systemic risk research. This study employs the Generalized AutoRegressive Conditional Heteroskedasticity (GARCH) model and the optimal Copula function to investigate the dynamic correlation between carbon prices and China’s financial markets. Building on this, the Monte Carlo simulation and Copula CoVaR models are used to explore the spillover effects of carbon price volatility on China’s financial markets. The findings reveal the following: (1) Carbon price fluctuations generate spillover effects on all financial markets, but the intensity varies across different markets. The foreign exchange market experiences the strongest spillover effect, followed by the bond market, while the stock and money markets are relatively less affected. (2) The optimal Copula functions differ between the carbon market and China’s financial markets, indicating heterogeneous characteristics across regional markets. (3) There is a degree of interdependence between the carbon market and various sub-markets in China’s financial system. The carbon market has the strongest positive correlation with the commodity market and a relatively high negative correlation with the real estate market. These findings underscore the importance of integrating carbon price volatility into financial risk management frameworks. For policymakers, it highlights the need to consider market stability measures when crafting carbon emission regulations. Market managers can leverage these insights to develop strategies that mitigate risk spillover effects, while investors can use this analysis to inform their portfolio diversification and risk assessment processes.