Financial System Research Articles

Review Paper: A Critical Review of Green Banking Initiatives and Their Impact on Sustainability

This review paper present the findings from key research on green banking initiatives, focusing on sustainability practices across countries. Green banking align to financial systems with environmental goals through policies, green loans, and sustainable investments. This review compares studies with a focus on Bangladesh, India, and China, analyzing trends, challenges, and policy implications. The synthesis reveals the varying implementation frameworks, market participation, and outcomes of green banking, along with persistent barriers across regions. This paper highlights the need for collaborative action, environment protection, capacity building, and policy standardization to foster global sustainable finance. Keywords: Green Banking, Green Fund, Environmental, Social and Governance.

Changes to the regulatory system for sports funding through the corporate tax system and the concentration of subsidies

Support through the corporate tax system is a very specific form of funding to promote the functioning of team sports. The basic idea of the mechanism is that profit-oriented companies can donate a larger part of their corporate tax to sports organisations. The scheme has been in operation in Hungary since 2011. Its introduction and fine-tuning required several legislative changes and EU approval. Its importance is reflected in the increase in the number of sports organisations in the respective sports. While funding is available to many sports organisations, in some cases it is quite concentrated. In our empirical research we sought to find out how the degree of concentration has changed over time. The degree of concentration has an impact on how balanced the competition is. One of the key values for sports services is the requirement of an uncertain output. The data reveal that over time the distribution has become more evenly balanced across all sport operators. The amount of funding for sports organisations has started to converge. According to these figures, there are several sports organisations with equivalent subsidies participating in the competition system. However, the majority of clubs with the highest subsidies tend to be the same from year to year. The allocation of grants is determined by the sports federation of the given sport according to the submitted applications. Decision-makers should pay particular attention to maintaining the balance of competition over a long period of time. To this end, the list of sporting organisations with the highest subsidies should be continuously assessed and revised.

The Function of the Deposit Insurance Corporation (LPS) as a Legal Protection Strategy for Customer Deposits Due to Bank Liquidation

This research aims to explore the role of the Deposit Insurance Corporation (LPS) in protecting customers when banks fail. The research methods used include policy analysis, case studies of failed banks, and reviews of related laws. It is hoped that the research results will provide a deeper understanding of the effectiveness of the legal protection provided by LPS to customers in the context of bank failures and the related compensation claims process. The Deposit Insurance Corporation (LPS) has a crucial role in protecting customer deposits when banks experience liquidation. In this context, LPS functions as a legal protection strategy for customer deposits held in banks. This action is important to maintain public confidence in banking amidst economic uncertainty. In response to the 1998 monetary crisis, the Indonesian government issued a policy of guaranteeing bank payments, including public deposits, through LPS. The importance of LPS is revealed when banks experience failures that have the potential to threaten the security of customer funds. In this situation, LPS guarantees the customer's refund up to a certain limit, providing the necessary financial protection. This creates a sense of security for customers and promotes banking system stability. With LPS, customers can be assured that their funds are safe even if unexpected events occur in the banking world. The role of LPS as a deposit insurance institution is inherent in the government's efforts to regulate and supervise the financial sector. LPS plays a role as the front guard in protecting customer interests, maintaining financial system stability, and preventing potential losses that could arise due to the possibility of bank failure.

The Role of Consumer Empowerment and Its Comparison in Financial Inclusion in the Global South

This research examines the role of consumer empowerment in advancing financial inclusion across the Global South, focusing on Africa, Latin America, and Asia. The study aims to understand how empowering consumers through economic literacy, protection, and equitable access facilitates meaningful participation in formal financial systems. It employs a qualitative analysis of case studies from Kenya, Bangladesh, Brazil, South Africa, Liberia and India, combined with a review of relevant policy frameworks and innovations in digital financial services. Findings reveal that consumer empowerment significantly enhances financial inclusion by building trust, fostering financial capability, and enabling access to tailored products. Case studies highlight the transformative impact of mobile platforms like M-Pesa and bKash, Liberia linking the informal financial sector to the formal financial sector pilot project and regulatory measures such as Brazil’s consumer protection laws and India’s responsible lending guidelines. However, barriers such as limited infrastructure, regulatory gaps, and socio-cultural norms continue to impede progress. The study concludes that bridging these gaps requires collaborative efforts to strengthen consumer protection, expand literacy programs, and leverage technology for equitable financial access. By addressing these challenges, stakeholders can create inclusive and resilient financial ecosystems that drive sustainable economic growth in the Global South.

Beyond the Financial Balance Sheet: Embracing the Triple Bottom Line for Sustainable Business Success

Our decisions today are part of an economic thinking which aims to fix problems and increase the efficiency of capital markets. Our economy is still largely approached as a system which is unrelated to our environment or social returns like community well-being, social cohesion, equitable distribution of resources, etc. To fully incorporate sustainability into cost-benefit analysis, businesses need to change their financial approach, showcasing how long-term thinking impacts profits. Money's value is not static and evolves with time and technology. We propose to introduce a variation of cost/benefit and present value calculations. Precise calculations reveal the benefits of long-term strategies over short-term profit focus. As financial systems evolve and technology advances, the accurate calculation of money's time value will continue to play a crucial role in shaping economic landscapes and guiding financial choices. In this article, we demonstrate that updated calculations could be a key enabler to visualize the benefits of long-term thinking or “patient finance” as compared to a short-term focus on profit. We introduce the concept and calculation of a Present Future Value (PFV).

The role of non-parametric and parametric methods in benchmarking research performance

This study examines the effectiveness of Kazakhstan’s grant funding system in supporting research institutions and universities, focusing on the relationship between funding levels, expert evaluations, and research outputs. We analyzed 317 projects awarded grants in 2021, using parametric methods to assess publication outcomes in Scopus and Web of Science databases. Descriptive statistics for 1606 grants awarded between 2021 and 2023 provide additional insights into the broader funding landscape. The results highlight key correlations between funding, evaluation scores, and journal publication percentiles, with a notable negative correlation observed between international and national expert evaluations in specific scientific fields. A productivity analysis at the organizational level was conducted using non-parametric methods to evaluate institutional efficiency in converting funding into research output. Data were manually collected from the National Center of Science and Technology Evaluation and supplemented with publication data from Scopus and Web of Science, using unique grant numbers and principal investigators’ profiles. This comprehensive analysis contributes to the development of an analytical framework for improving research funding policies in Kazakhstan.

Effect of artificial intelligence on the financial performance of Indian banking sector

Purpose: The purpose of this paper is to explore the impact of Artificial Intelligence on the performance of Indian Banks in terms of financial metrics. The study focused specifically on the NIFTY Bank Index. The paper also advocates that a greater transparency in disclosing AI related information in a Bank’s annual report is required even if it is voluntary. Design/Methodology/Approach: The paper uses a mixed method approach where quantitative and qualitative analysis is combined. A dynamic panel data model is used to understand the impact of AI of Return on Equity (RoE) of 12 Indian Banks in the NIFTY Bank Index over a five-year period. In addition to that, Content analysis of annual reports of banks was conducted to examine AI related disclosure and transparency. Findings: The paper highlights that the integration of Artificial Intelligence (AI) significantly influences the financial performance of sample banks of India. Return on Equity the specific parameter positively influenced with adoption of AI. The profitability of banks is positively impacted by reduced errors and improved operational efficiency. The content analysis of annual reports of the banks indicates different approach for AI disclosure where some banks give detailed information and some are not transparent about AI initiatives. The findings suggest that a higher level of transparency could enhance confidence of all stakeholders. Theoretical Implications: The positive relation between adoption of AI and financial performance, specifically ROE, gives a foundation for academic research to explore the dynamics of emerging technology and financial systems. The study can be extended to explore the impact on other performance indicators in different sectors. Practical Implications: The findings of this study emphasize the importance of transparent AI related disclosures. A detailed reporting about integration of AI helps in enhanced stakeholders’ confidence in case of banking industry. The regulatory framework of banks may also consider making mandatory AI disclosure practices to ensure due accountability to maximize the benefits of AI in banking.

Prinsip – Prinsip Ekonomi Islam dalam Perspetif IPTEKS

The purpose of this research is to explore the principles of Islamic economics in adapting to the rapid developments in science, technology, and arts (STEM). Islamic economics focuses on several aspects, including material, spiritual, and moral dimensions. This illustrates that the principles of Islamic economics should be applied to a broader environment, including developments in science, technology, and arts (STEM). Islamic economics is a system that adheres to the principles of Islamic law (Sharia). The concept of Islamic economics includes: Balance, Justice, and Safety, which serve as the foundation for resource management. There are many opportunities within Islamic economics to establish a new financial system, such as reporting and recording based on Sharia and utilizing more optimal technology. The application of this new Sharia financial system plays an important role in strengthening the principles of Islamic economics, including the prohibition of usury (riba), uncertainty (gharar), unjust distribution of wealth, and investments that harm the community. Investment in Islamic economics is a means of placing funds with the aim of generating profit, while adhering to the principles of Islamic economics, making it a permissible activity that avoids elements of usury, gambling (maysir), and uncertainty (gharar). The implementation of these principles of Islamic economics will ultimately benefit the community and prevent any harm. People must pay more attention to the legal foundations set by Sharia, which provides clear guidelines for a prosperous and balanced life, covering both social and economic aspects as well as the environment.

DO MACROECONOMICS AND COMMODITIES PREDICT STOCK MARKET?

The stock market is a leading indicator and barometer of a nation’s economics and is influenced by a wide of factors, including macroeconomic conditions and global commodity prices. One of the consequential effects of the stock market is foreign exchange. International commodity prices, such as tin, may have an impact on the stock market too. Foreign exchange and the stock market are two significant components of the financial system, and the price of commodities has been a concern for industrialists, economists, and researchers in recent years. This research examines the effect of foreign exchange and commodities on the stock market, uses daily data from the beginning of January 2020 to the end of December 2023, and applies the Generalized Auto Regression Conditional Heterokedasticity (GARCH) method. The findings show that foreign exchange has a negative significant effect on the stock market, while commodities have a positive and significant effect on the stock

System of Monitoring the Financial Activity of the Enterprise

Monitoring of financial activity is one of the key functions of enterprise management, because it, in particular, ensures control of current costs and income; contributes to the analysis of the financial state of the enterprise; supports planning of future financial flows. The purpose of the article is the research of information systems for monitoring the financial activity of enterprises, the identification of problems of financial activity, the analysis of the ways of using the appropriate software and the development of the system for monitoring the financial activity of enterprises. The research methods are the main methodological approaches and technological tools for the development of financial monitoring systems. Such methods, in particular, are: systematic and comparative analyzes – to identify the peculiarities of the creation of systems for monitoring the financial activity of enterprises; the method of expert assessments, which involves the analysis of literary sources and information resources, conducting interviews and surveys of experts, as well as the processes of development and testing of scalable and high-performance financial monitoring systems. The novelty of the research is the creation of a complex system for monitoring financial activity, which includes an intuitive interface, a flexible database and the ability to generate various reports, giving users the opportunity to effectively manage their financial data, simplifying the process of entering, editing and analyzing information through the use of a stack of modern technologies. The conclusion of the research carried out in the article is that the work was: identified the main problems of monitoring the financial activity of enterprises, which are solved with the help of modern financial monitoring systems; an analysis of existing software solutions was carried out; the advantages and disadvantages of the existing software for monitoring the financial activities of enterprises were analyzed; the main so-called «bottlenecks» of the automation of financial monitoring, which need to be solved, have been identified. On the basis of the conducted analysis, an author’s system for monitoring the company’s financial activity was developed, focused on ease of use and efficiency of financial data management. The development of the software of the author’s system included: the selection of the appropriate technological stack; system architecture development; implementation of basic functional modules (for example, such as transaction management, categories and reports); system database development; system interface development. The results of the conducted research open up new opportunities for improving financial management and making informed decisions based on the received data.

The Role and Challenges of International Standards on Auditing in Diverse Economic Contexts

The adoption and implementation of International Standards on Auditing (ISAs) are crucial for ensuring consistent audit quality and financial reporting integrity globally. These standards, established by the International Auditing and Assurance Standards Board (IAASB), aim to provide a universal framework for auditing practices. Developed economies, such as the United States and the United Kingdom, have leveraged strong regulatory frameworks and advanced technologies to achieve high compliance with ISAs, thereby enhancing investor confidence and market stability. However, the disparity in ISA adoption between developed and emerging markets raises critical concerns about global audit reliability and financial transparency. Emerging markets, including regions in Sub-Saharan Africa, face unique challenges that hinder ISA implementation. Factors such as weak regulatory oversight, limited access to training, and cultural barriers contribute to inconsistent audit practices. In Nigeria and Cameroon for instance, inadequate enforcement mechanisms and resource constraints have led to irregularities in financial reporting, which significantly impact auditors’ ability to adhere to ISA guidelines. These systemic issues not only undermine audit quality but also erode stakeholder trust in financial systems, creating barriers to economic development and foreign investment. This study explores the role and challenges of ISAs across diverse economic contexts, focusing on the factors affecting their implementation and proposing strategies for improvement. Using a qualitative methodology, including case studies such as CBC Health Services in Cameroon, the research underscores the need for tailored approaches to bridge the gap in ISA adoption. Key recommendations include enhancing auditor training, integrating advanced auditing technologies, and strengthening regulatory frameworks to ensure uniform application of ISAs globally. Addressing these challenges is essential to achieving the overarching goal of financial stability and audit reliability worldwide.

Mechanisms of Monetary Cooperation in BRICS: First Results and New Challenges

The issues of creating a more equitable global monetary and financial system have been constantly in the focus of the BRIC countries since 2006. Gradual introduction of unprecedented restrictive measures against one of the participants – Russia – forced member states to intensify the work on diminishing their dependence on actions of the United States, searching for alternative ways of payment for goods and services and reducing transactions in US dollars. The article analyses prerequisites for development of monetary cooperation within BRICS and implications of the measures already taken in this direction. The extent to which introduction of a common currency can contribute or, on the contrary, create barriers to deepening economic integration within BRICS is explored. The experience of introducing euro in the EU shows that the decision on joining a common currency is not just an economic, but also a political one. Ignoring the risks associated with a radical change in payment systems can lead to serious disruptions in the world economy and push exporters and importers away from implementation of agreements reached at the highest level. The authors come to the conclusion that speeding up currency cooperation without relying on comprehensive consideration of the interests of BRICS countries and assessment of potential costs and benefits can lead to deterioration of the terms of mutual trade against the backdrop of the US attempts to maintain the existing architecture of global monetary system with absolute domination of the US dollar.

China's Financial Liberalization: Specific Aspects and Effects6

The article is devoted to studying financial liberalization in China. The study is identified the main stages of financial liberalization and its adjustments depending on internal and external circumstances. A new international financial crisis is growing and has already begun to affect China's economy. A comparative analysis of China and the G20 developing countries was carried out in terms of financial openness and financial integration into the global financial system, cryptocurrencies regulations and digital national currency, features of economic policy and the state of the external financial sector. China's liberalization policy began with the removal of restrictions on foreign direct investment and the current account. The priorities of the financial liberalization policy is changed by reason of the economy grows and develops: from domestic economic development to the financial expansion of other countries in order to gain access to new markets and technologies. But most restrictions on the movement capital remain in China. The use of cryptocurrencies as an opportunity to circumvent currency restrictions is legally prohibited, and instead an attempt is being made to impose a national digital currency on society. The degree of government participation in the economy plays an important financial liberalization. Comparing other developing countries, China has a much higher degree of government involvement in the economy. This allows to maintain macroeconomic stability within the country even during international financial and economic crises. It is concluded that a gradual and partial financial liberalization with the maintaining domestic macroeconomic stability will provide the best results.

INTERNATIONALIZATION OF CORPORATE FINANCE IN THE EUROPEAN UNION: CHALLENGES AND OPPORTUNITIES FOR GLOBAL COMPETITIVENESS

The article provides a comprehensive analysis of the internationalization of corporate finance in the European Union (EU), focusing on its critical role in fostering global competitiveness and addressing the internal challenges of financial integration. It evaluates the progress achieved through key initiatives, such as the Capital Markets Union (CMU) and the adoption of the euro, which have significantly enhanced cross-border capital flows, improved financial stability, and reduced transaction costs. The study underscores the importance of aligning EU financial markets with global standards to support innovation-driven sectors, including renewable energy, fintech, and digital finance, which are pivotal to sustainable economic growth. At the same time, the article identifies enduring obstacles that hinder the seamless internationalization of corporate finance in the EU. These include regulatory fragmentation, tax disparities, and structural economic differences among member states, all of which limit the access of firms – particularly small and medium-sized enterprises (SMEs) – to diversified and cost-efficient funding sources. The EU’s reliance on a bank-centered financial model is critically examined, with the study highlighting its implications for innovation, competitiveness, and financial resilience. The article provides a theoretical and methodological foundation for understanding corporate finance internationalization. It emphasizes the structural advantages of market- oriented systems while advocating for comprehensive reforms within the EU. Key recommendations include completing initiatives such as the CMU and Banking Union, achieving regulatory and tax harmonization, and adopting digital finance technologies to enhance cross-border efficiency and reduce operational complexities. By addressing these challenges, the EU can create a unified and robust financial system that not only strengthens its internal market but also enhances its competitiveness on the global stage. The findings of this study contribute to both academic understanding and practical policymaking by outlining strategies to advance financial integration, foster innovation, and ensure the EU’s long-term leadership in the global financial landscape.

Злочини “білих комірців” під час війни

Abstract. The article focuses on the issue of white-collar crime, examining its pervasive and harmful impact on society, especially during periods of social and political instability. White-collar crime typically involves offenses committed by individuals in high-status positions—such as business executives, government officials, and politicians—who exploit their social standing and access to resources for personal or financial gain. These crimes often include actions like economic fraud, bribery, and tax evasion, which erode the foundations of trust, integrity, and transparency in public and private institutions. The article provides an in-depth analysis of various types of white-collar crimes, detailing how economic fraud involves the misappropriation of assets through deception, while bribery enables unlawful influence in decision-making processes, and tax evasion deprives the state of necessary funds for public services. Each of these crimes undermines public confidence in governance and financial systems, often with far-reaching consequences for the economy and society. Ukraine faces unique challenges in combating white-collar crime, especially given its high levels of corruption and ongoing geopolitical conflict. The article emphasizes the latent, often concealed nature of such crimes, which allows offenders to avoid detection and punishment, further emboldening corrupt practices. The article also examines how the war has intensified the need for judicial reform and stronger measures to address white-collar crime, including the imposition of sanctions and more rigorous investigative processes. The conflict has shifted judicial priorities, requiring a heightened focus on cases where criminal acts may also threaten national security. This new context has led to more stringent enforcement and penalties for those whose financial misconduct intersects with issues of national integrity and resilience. Overall, white-collar crime is a pressing issue, as it destabilizes economies, undermines public trust in institutions, and fosters inequality by allowing influential perpetrators to act with relative impunity. Its concealed nature and the often-complex networks involved make it challenging to investigate and prosecute, especially in wartime when resources are stretched, and legal processes may be disrupted. In Ukraine, the impact of white-collar crime is particularly pronounced, as both corruption and the ongoing war have exacerbated and transformed the landscape of these offenses. The article underscores the importance of developing a robust legal framework, increasing transparency, and involving civil society in efforts to expose and combat white-collar crime, thus protecting the nation’s stability and social welfare. Keywords: white-collar crime; economic fraud; bribery; tax evasion; corruption; martial law; legal sanctions.

PENGARUH KEBIJAKAN VAKSINASI COVID-19 DAN INFORMASI KEBIJAKAN TAPERING OFF TERHADAP IHSG TAHUN 2021-2022

Currently, there is a Covid-19 pandemic that is spreading throughout the world, including Indonesia. Then the government carried out a Covid-19 Vaccination policy to overcome this problem. Along with the implementation of the Covid-19 Vaccination policy, there was information tapering off information policy. What has an impact on the financial system and the real sector is the depreciation of the exchange rate and the high value of inflation. This resulted in capital outflows which had an impact on the ICI movement. The purpose of this study is to determine the impact of covid-19 vaccination, exchange rates, and inflation on ICI in 2021-2022. Research model used VECM (Vector Error Corection Model) with the help of research tools E-Views. The results obtained from this study show that the Covid-19 Vaccination Policy has an influence on the ICI and based on the IRF analysis of trends due to shock in the peiode has a positive influence. Information on tapering off policy through exchange rate and inflation variables has an influence on the ICI and based on IRF analysis the trend due to shock in that period has a negative influence.

IMPLEMENTATION OF FINANCIAL TECHNOLOGY IN LOCAL MSME ON THE ECONOMIC DEVELOPMENT OF BALI SOCIETY

Along with its development, the online offering business of one of Bali's local MSMEs has become an alternative in between busy work. With the obstacles faced by several business actors, especially in villages, the convenience provided by digitalization becomes a problem. Seeing the obstacles to payment from selling offerings online, a deep understanding of a transparent financial technology system is needed to make it easier and provide confidence to the Balinese Hindu community who carry out online banten ceremony transactions. This study aims to see the influence of Digital Financial Technology in increasing the development of local MSMEs and will automatically improve the community's economy. This research method uses descriptive analysis by looking at data on the growth of digital payment technology. The study results show evidence that local MSMEs are greatly helped by digital financial technology such as QRIS, virtual accounts, and e-wallets that can be accessed via smartphone. We cannot avoid digitalization, but we must be able to surf the fast wave of digitalization. With the many conveniences provided, it is hoped that the online offering business of one of Bali's local MSMEs can develop better and benefit the economy, especially the Hindu community in Bali.

Intelligent Anti-Money Laundering Transaction Pattern Recognition System Based on Graph Neural Networks

This paper presents a new Intelligent Anti-Money Laundering Transaction Pattern Recognition System based on Graph Neural Networks (GNNs). The proposed system addresses the limitations of traditional anti-money laundering (AML) by leveraging the power of image representation and deep learning techniques. We introduce general methods for creating financial networks based on different shapes, including structural and physical. A custom GNN architecture is designed, featuring heterogeneous graph convolution, listening mechanisms, and physical models to capture the exchange patterns. The system uses advanced engineering techniques to extract both local and global features of financial performance. The analysis of the world's big data shows that the best performance of our method, achieved 35.2% Money Laundering Detection Rate (MLDR) in the top 1% of business flag, do better way. The model interpretation is improved by analyzing the SHAP value, providing insight into the decision-making process. Case studies show the system's ability to uncover financial transactions, including deposits from cryptocurrency exchanges and smurfing operations. This research contributes to the advancement of AML practices by introducing more accurate, flexible, and effective solutions for investigating financial crimes in complex financial systems more.

Analysis of the Current Situation of Liquidity Risk Management in China's Commercial Banks and the Proposed Countermeasures

This paper discusses in depth the importance of liquidity risk management in commercial banks and the challenges it faces at a time of accelerated global economic integration. Financial globalization not only brings unprecedented development opportunities for the banking industry, but also exposes it to more complex and volatile liquidity risks. As an important part of the financial system, the sound operation of commercial banks is crucial for maintaining financial stability and healthy economic development. The article focuses on the current situation of liquidity risk management in Chinese commercial banks and reveals the core issues of weakening deposit base and loan expansion aggravating liquidity pressure through detailed analysis. Subsequently, a combination of literature review and case studies is used to analyze the dual impact of macroeconomic fluctuations and micro-management deficiencies on liquidity risk. Ultimately, the study concludes by emphasizing the key roles of the improvement of the government regulatory system and fintech in optimizing the asset and liability structure of banks and enhancing the efficacy of risk management, which together safeguard the sound operation of the financial system and the sustained and healthy development of the economy.

Digital Inclusion and Empowerment: Evaluating Key Enablers for Women Entrepreneurs in the Informal Economy through AHP

This study explores the key enablers of digital inclusion and empowerment for women entrepreneurs in the informal economy, with a particular focus on evaluating these factors using the Analytical Hierarchy Process (AHP). Despite the vast potential of digital tools in enhancing business practices, women in the informal sector face significant barriers in accessing technology, digital literacy, financial support, and social acceptance. This research identifies five critical attributes—Access to Digital Infrastructure, Digital Literacy, Financial Support Systems, Social and Cultural Acceptance, and Government and Policy Support—and assesses their relative importance for enabling digital inclusion. Through AHP, the study aims to prioritize these enablers and provide valuable insights for policy makers and organizations to design targeted interventions that foster digital empowerment. The findings reveal that access to digital infrastructure and digital literacy are the most significant enablers, while social and cultural acceptance also plays a crucial role in overcoming gendered barriers to digital engagement. This research contributes to the understanding of digital inclusion challenges and opportunities for women entrepreneurs in the informal economy, offering a pathway toward more inclusive digital entrepreneurship.