Global Financial 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.

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.

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.

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.

Strategy to Increase the Availability and Accessibility of Funds for AIDS, Tuberculosis and Malaria (ATM) Programs in Indonesia: Literature Review

This literature review explores Indonesia's strategies to enhance funding accessibility for AIDS, Tuberculosis, and Malaria (ATM) programs, with a focus on its collaboration with the Global Fund (GF). It outlines the critical role of funding in combating ATM and Indonesia's extensive health diplomacy efforts with the GF. Utilizing a systematic review approach, findings from four studies between 2019 and 2024 were synthesized. Results reveal varied findings, including challenges in TB treatment services during the COVID-19 pandemic, deficiencies in TB Multi Drug Resistant (MDR) control programs, and insights into Indonesia's partnership with the GF. The analysis of HIV/AIDS expenditure highlights a decline in funding, emphasizing the need for advocacy and revised funding mechanisms. In conclusion, Indonesia's efforts in ATM combat through health diplomacy, notably with the GF, are substantial. Diversified funding sources, sustained collaboration, and increased self-sufficiency are crucial for meeting global health targets. Strengthening domestic resources, optimizing program implementation, and fostering partnerships are imperative to ensure equitable access to healthcare services and sustain progress in addressing ATM challenges. Innovative financing mechanisms can bolster initiatives, contributing significantly to achieving Sustainable Development Goals (SDGs) by 2030.

Preface: 6th International Conference on Global Economy, Finance and Humanities Research (GEFHR 2024)

The 2024 6th International Conference on Global Economy, Finance and Humanities Research (GEFHR 2024) has been successfully conducted in New York, USA during October 26-27, 2024. This conference aims at summarizing recent research activities relevant to the advanced development in the global economy, finance management, innovation management, business management, electronic commerce, humanities research, and social science, and facilitate communication among relevant experts. More than 70 persons have been participated in GEFHR 2024. About 40 presentations including 4 invited talks were presented. The presentations are grouped into 5 areas of particular interest: (1) Global Economy, (2) Finance Management, (3) Business Management, (4) Electronic Commerce, and (5) Humanities Research. We are indebted to all of authors for submitting their original papers. We would like to thank all members of International Board, members of Organizing Committee, and my gratitude to all those who help the success of this conference. GEFHR Organizing Committees New York, USA

Analysis of Current Situation of Green Finance and Sustainable Development in China

Amidst escalating global environmental challenges, green finance, serving as a pivotal instrument for advancing sustainable growth, is garnering heightened interest from the international arena. This financial mechanism seeks to channel societal capital into eco-friendly sectors including environmental stewardship, energy efficiency, decarbonization, and renewable energy, all the while adeptly mitigating ecological hazards and fostering harmonious development dynamics. The primary objective of this piece is to delve into the conceptual framework, historical evolution, predominant operational paradigms, hurdles, and prospective growth trajectories of green finance. Moreover, it seeks to dissect the interplay between green finance and pertinent governmental strategies, alongside its influence on various facets of the economy. Through this approach, the endeavor seeks to furnish both theoretical benchmarks and practical insights that can propel the development and refinement of the global green finance framework. Moreover, it intends to catalyze more profound investigation and hands-on experimentation within this domain, thereby accelerating the evolution and enhancement of green finance mechanisms to more effectively support the overarching objective of global sustainability.

Comparative characteristics of the Standard&Poor’s, Moody’s and Fitch ratings

The activities of the leading international credit rating agencies Standard&Poor’s (S&P), Moody’s and Fitch, peculiarities of their work and existing differences have been considered. The relevance of the study lies in the comparative characterization of the listed agencies in the current conditions of the anti-Russian sanctions expansion and their strengthening after the beginning of the special military operation in Ukraine. The purpose of the study is to compare the activities of the world’s leading rating agencies S&P, Moody’s and Fitch in modern conditions. The subject of the study is the peculiarities of these agencies’ activities and changes that have occurred in the conditions of the anti-Russian sanctions. To achieve the set goal the following tasks have been set: the leading credit rating agencies’ activities analysis, comparison of their methodological approaches and the scales used to assess the credit rating of countries. The conclusions about the place and important role of international credit rating agencies in the modern world financial system, differences in the assessments made by the agencies, the specific attitude of S&P, Moody’s and Fitch to the credit rating of Russia in the current conditions of the anti-Russian sanctions expansion and the special military operation have been presented.

The Impact of Macroeconomic Factors on Gold Prices

This study analyzes the influence of significant macroeconomic variables, like interest rates, inflation, GDP growth rates, and currency rates, on gold prices. Analysis of a 20-year dataset from 2003 to 2023, employing descriptive statistics and regression techniques, demonstrates substantial connections between these variables and changes in gold prices. The results show that inflation and exchange rates have a positive relationship with gold prices, while GDP growth rate has a modest inverse relationship. Interest rates exhibit a weak inverse relationship, although it is not statistically significant. The model explains approximately 93% of the variation in gold prices, underscoring the complex interplay between macroeconomic factors and gold price movements. The results are significant for investors aiming to mitigate inflation or economic instability, as well as for policymakers evaluating the effects of monetary policy on gold demand. This research contributes to the understanding of gold's role in the global financial system and highlights areas for future investigation, including the incorporation of additional factors and advanced modelling techniques. Keywords: Gold prices, Macroeconomic factors, GDP growth rate, Interest rates, Inflation, Exchange rates, Regression analysis.

Pengaruh Ketidakpastian Globalisasi Keuangan dan Investasi Asing Langsung Terhadap Pertumbuhan Ekonomi dengan Pendekatan Akuntansi Arus Dana di Indonesia Tahun 2019-2022

Economic growth is an important indicator that reflects changes in a country's economic conditions toward a better state. Using a cash flow accounting approach, this study examines the effect of uncertainty in financial globalization and foreign direct investment on economic growth in Indonesia from 2019 to 2022. Indonesia's economic growth has fluctuated significantly during the COVID-19 pandemic, with a sharp decline in 2020 and recovery in 2021 and 2022. Global uncertainty and international conflicts, such as the Russia-Ukraine war, have also affected the global and domestic economies. Partial Least Square (PLS) analysis techniques and secondary time series data are used in this study’s quantitative methodology. The findings indicate that while foreign direct investment has a positive and considerable impact on economic growth, financial globalization uncertainty has no discernible impact on Indonesia’s economic growth. These result highlight the role that foreign investment plays in stimulating economic growth as well as the necessity of enacting laws that promote an environment that is favorable to investment. The cash flow accounting method offers a more thorough view of how foreign direct investment affects the domestic economy.

Global public goods, fiscal policy coordination, and welfare in the world economy

A two-region endogenous growth model of the world economy with local and global public goods is used to study strategic interactions between national policymakers. Distortionary taxes are used to finance infrastructure investment at home and generate resources for vaccine production by a global fund. While the global public good is nonexcludable, it is partially rival. Optimal tax rates under cooperation and noncooperation are solved for analytically, under both financial autarky and openness, and numerical experiments are performed to evaluate the welfare gain from cooperation. Whether optimal levies are higher or lower under cooperation, and the magnitude of welfare gains, depend on the degree of integration of capital markets, the existence of a direct trade-off between expenditure components, and the nature of the tax base. When the health levy takes the form of a capital or wealth tax, cooperation is welfare-improving under both autarky and financial openness, but enforcement and collection costs may narrow the scope of taxation under all policy regimes.

Energy Price Impact on BRIC Stock Markets: A Granger Causality Analysis

Energy prices and the stock market are two of the crucial factors in the evolving landscape of global finance, particularly in major emerging economies. However, research on how energy price changes impact stock markets in BRIC countries remains limited, despite their diverse roles in global energy markets and economies. This study investigates the causal dynamics between energy prices and stock market performance in BRIC countries, aiming to uncover short-term fluctuations and long-run relationships in these major emerging economies. Utilizing daily data from 2013 to 2023, stationarity tests, cointegration analysis, and Granger causality tests are employed to examine these relationships. Key findings reveal weak evidence of a long-run equilibrium between energy prices and stock market indices, challenging previous assumptions about their cointegration. More significantly, the findings uncovered a strong unidirectional Granger causality from oil prices to all BRIC stock market indices, while gas prices show a more selective influence. Notably, no evidence of reverse causality from stock markets to energy prices was found, highlighting the exogenous nature of global energy prices in relation to BRIC stock markets. This study uniquely analyzes oil and gas price effects on BRIC stock markets, offering insights for investors and policymakers amid increasing commodity-financial market integration. Doi: 10.28991/ESJ-2024-08-06-015 Full Text: PDF

Sustainable antimicrobial resistance surveillance: time for a global funding mechanism

Sustainable antimicrobial resistance surveillance: time for a global funding mechanism

The impact of financial sanctions on economic policy uncertainty: Global evidence

Based on panel data from 20 countries from 1991 to 2020, this study uses the difference-in-differences method to empirically test the impact of financial sanctions on economic policy uncertainty in sanctioned countries. The study shows that financial sanctions have significantly increased the economic policy uncertainty of sanctioned countries. This impact is mainly achieved through mechanisms such as increasing the national risk of sanctioned countries, reducing their exchange rate stability, and restricting their international trade. The study also shows that the impact of financial sanctions on economic policy uncertainty is more significant in countries with a high degree of financial globalization and a heavy foreign debt burden. The effect of multilateral sanctions is also more significant than unilateral sanctions. This study provides useful inspiration for policy responses to financial sanctions.

Contextualization of Ushul Fiqh in Muamalah and Modern Banking: Sharia Solutions in the Global Economic System

This study examines the application of ushul fiqh, the foundational discipline of Islamic jurisprudence, in modern Islamic banking and its implications for the global economic system. Using a Systematic Literature Review (SLR) methodology, this research analyzes academic contributions from 2018 to 2024, focusing on the integration of Islamic principles into banking practices. The findings reveal that ushul fiqh significantly reduces financial instability through principles like the prohibition of riba (interest), reduction of gharar (uncertainty), and emphasis on maslahat (public welfare). These principles align economic transactions with ethical values, fostering inclusivity and sustainability. However, challenges such as regulatory standardization and integration into global markets persist. Despite these, the study identifies substantial growth opportunities for Islamic banking, especially with the rise of sharia-compliant Fintech solutions. This research highlights the potential of ushul fiqh as a transformative tool for promoting justice and resilience in global financial systems while meeting the ethical demands of modern economies

From Chaos to Clarity: India's Legalization Journey of Cryptocurrency

Cryptocurrency has revolutionised the global financial system by offering a decentralised, digital alternative to traditional currencies. Cryptocurrencies allow safe peer-to-peer transactions without the use of traditional financial middlemen by leveraging blockchain technology. Since the launch of Bitcoin, the most well-known cryptocurrency, in 2009, other digital assets like Ethereum, Ripple, and Litecoin have seen tremendous growth. These virtual currencies function on decentralised networks without the interference of a centralised authority. The rise in popularity of Bitcoin in the early 2010s marked the beginning of the introduction of cryptocurrencies in India. Due to the market's initial lack of regulation, there were both exhilarations and worries. In 2013, the Reserve Bank of India (RBI) released its first advisory about cryptocurrencies, outlining the potential dangers of fraud, security, and market volatility. The RBI outlawed cryptocurrency banking in 2018, making it illegal for financial institutions to deal with virtual currencies. But in March 2020, the Supreme Court declared this restriction to be unconstitutional, which rekindled interest in the cryptocurrency market. There is still regulatory ambiguity despite this. Since then, the Indian government has held lengthy talks over legislation about cryptocurrencies. While possibly limiting private cryptocurrencies, the Cryptocurrency and Regulation of Official Digital Currency Bill offers a legislative framework for the Reserve Bank of India's Central Bank Digital Currency (CBDC), the Digital Rupee. India is now considering how to regulate decentralised cryptocurrencies as of 2024. There isn't a complete legal structure for cryptocurrencies in India yet. Cryptocurrency trade and use are indirectly impacted by extant legislation, including the Income Tax Act and anti-money laundering rules. Despite the RBI’s 2018 circular being overturned, prudence with digital currencies is advised. Cryptocurrency exchanges must follow KYC and anti-money laundering regulations. The pending Cryptocurrency Bill aims to address regulatory ambiguity, while the RBI-backed Digital Rupee offers a regulated alternative.

The BRICS New Development Bank in the World Financial System

The article reveals the main stages of formation of New Development Bank (NDB), its strategic peculiarities and activity areas, opportunities and existing challenges to achieve the aims concerning promotion of interests of developing countries in the international fi nancial system, including reforms of international fi nancial institutions. The analysis shows that during the decade of its existence NDB turned into fully functional fi nancial institute with its own management bodies, a strong fi nancial profi le (credit rating AA+ from Standard and Poors). All this allows the bank to attract long-term fi nancing on global capital markets. The bank also has a wide range of borrowers in the fi eld of infrastructure projects and sustainable development. The core principle of NDB’s organizational and management system is the equal contribution in capital that means the equal voice rights of the founding countries plus "agreement by consensus". The analysis held by the authors demonstrates that this principle can cause both positive as well as negative consequences. For example, it can lead to disagreements between member countries concerning credit policy. The problem can be solved only via a trade-off . Being the new and special development bank, NDB at the same time has to consider economic reality he operates in. The research proves that today NDB is a part of international fi nancial community. The bank aims to cooperate with other MDBs. Nevertheless, NDB actively supports the question of reforming the existing world fi nancial institutions, including IMF, World Bank and other MDBs to promote the principles of equality and justice at the global level. Bank’s loyalty to its own strategies and principles allows to consider NDB as a fi nancial institute, that is alternate to other MDBs. Of course, now NDB cannot replace all other MDBs. Alternativeness here means a demonstration of possibility to achieve more equal and fair approach to international fi nancial relations. Such approach meets the interests of the majority of countries in the world. That’s why it’s evident that despite many challenges the role of NDB in world fi nancial system will increase.

Scoping Review of Climate Change Adaptation Interventions for Health: Implications for Policy and Practice

Climate change is among the greatest threats to health in the 21st century, requiring the urgent scaling-up of adaptation interventions. We aim to summarise adaptation interventions that were funded by the Belmont Forum and the European Union, the largest global funders of climate change and health research. A systematic search was conducted (updated February 2023) to identify articles on adaptation interventions for health within this funding network. The data extracted included study characteristics, types of interventions, and study outcomes. The results were synthesised narratively within the PRISMA-ScR guidelines. A total of 197 articles were screened, with 37 reporting on adaptation interventions. The majority of interventions focused on the general population (n = 17), with few studies examining high-risk populations such as pregnant women and children (n = 4) or migrants (n = 0). Targeted interventions were mostly aimed at behavioural change (n = 8) and health system strengthening (n = 6), while interventions with mitigation co-benefits such as nature-based solutions (n = 1) or the built environment (n = 0) were limited. The most studied climate change hazard was extreme heat (n = 26). Several studies reported promising findings, principally regarding interventions to counter heat impacts on workers and pregnant women and improving risk awareness in communities. These findings provide a platform on which to expand research and public health interventions for safeguarding public health from the effects of climate change.

The Role of Islamic Finance in Sustainable and Green Transition

This study examines the role of Islamic finance in advancing the United Nations' Sustainable Development Goals (SDGs), focusing on often-overlooked conflicts among these goals, such as the tension between poverty alleviation (SDG 1), hunger eradication (SDG 2), and environmental sustainability. It emphasizes the need for balanced progress across SDGs, particularly in Muslim societies where welfare aligns with religious principles. The study advocates for a Green Economic Transition (GET) aimed at achieving high human development while respecting Maqasid Shariah and ecological limits. GET, it suggests, should be the core of climate-conscious policies and business strategies. Recognizing shifts in the global financial system to reconcile economic and social development with environmental goals, the study underscores the need for policies aligning these aspects. It also explores the contribution of Islamic economics and finance-including commercial finance (banking, takaful, Sukuk, Shariah-compliant equity markets) and social finance (Zakah, Waqf, charities, Qard)-in fostering sustainable green finance. Noting the gap where these tools are still tied to conventional finance, the study proposes a framework for developing coherent climate policies within Islamic finance and identifies opportunities for Islamic sustainable green finance.

The sovereign climate debt trap and natural disaster clauses

AbstractThe growing prevalence and magnitude of climate‐related natural disasters are perpetuating a climate debt trap in which recovery costs compound over time, progressively eroding the capacity of governments to obtain financing to respond to them. How can countries participating in global financial markets respond? This article focuses on natural disaster clauses in sovereign debt contracts, which enable a national government to temporarily suspend payments to its creditors when a natural disaster strikes the country. Natural disaster clauses are analyzed and critiqued as an example of contract innovation amidst ongoing debates about legal reform of the global financial system in response to climate change.