International Bank Research Articles

Interest rate risk in banking book management at commercial banks in Vietnam

Interest rate risk is potentially averse to a commercial bank's trading book and banking book. The sharp and rapid volatility of interest rates can push commercial banks to fall into difficult situations, thus leading to instability of the whole banking system. Therefore, interest rate risk in banking book (IRRBB) management plays a vital role in banking operations. This paper analyzes the current management of IRRBB at 21 commercial banks in Vietnam by doing in-depth interviews and questionnaires. The finding indicates that the level of IRRBB management of commercial banks in Vietnam is mostly relatively completed or inadequate, with the highest levels belonging to international commercial banks and the banks that implement Basel II. Furthermore, the study also executes a simulation of IRRBB management at one commercial bank according to current regulations of the State Bank of Vietnam. Based on the selected interest rate scenarios, the capital requirement for IRRBB is calculated, which is the actual simulation for commercial banking in implementing the IRRBBB framework. Finally, to improve the effectiveness of IRRBB management in Vietnam, some implications for the State Bank of Vietnam and commercial banks are provided.

Design by Transitional Committee: learning from the Green Climate Fund

ABSTRACT In 2022 at the UN climate conference in Sharm el-Sheikh (COP27), countries agreed to establish a new fund for loss and damage. This decision was one of the most significant outcomes of the COP, and something Small Island Developing States had spent the previous three decades calling for. The approach taken to realize this new funding arrangement includes many similarities to that taken to create a similarly significant new fund twelve years earlier – the Green Climate Fund (GCF) – including its design by a Transitional Committee. The aim of this article is to assess the extent to which the ambitions for the GCF have been realized, with a view to informing the ongoing design and early implementation of the new fund. To do this, the article compares the GCF’s present-day outcomes to its original intentions as described by the COP16 decision text. This paper finds that the GCF’s operation today only partially reflects the ambitions expressed at COP16. While the ambition for a Board with equal representation by developing and developed countries has been achieved, ambitions to expand the sources of finance and increase funding for adaptation have been mixed. The influence of the World Bank was a key point of tension over the GCF’s Transitional Committee period, and the Bank continues in the Trustee role today. The role of the Committee’s Technical Support Unit – the group of staff seconded from various international development banks and agencies to provide technical and administrative support to the GCF’s Transitional Committee – had an outsized influence on the shape of the GCF, such that these organizations continue to receive the bulk of GCF funding today. These findings suggest a greater plurality of voices providing such technical inputs would enhance the design of new funding bodies. The creation of new international finance institutions is relatively rare, so understanding the history of the GCF’s design is important for contextualising discussions about other climate finance options.

As relações econômicas entre Costa do Marfim e França

he present article deals with the economic relations between Ivory Coast and France, analyzing the economic trajectory of the country under the presidency of Félix Houphouët Boigny (1960-1993). We seek to address the process of independence of the country, led by Boigny, dealing with the neocolonialist action of France through the use of the CFA Franc and the maintenance of military bases in the country, among others. In this context, we present a retrospective of Ivory Coast's economic policy, focused on agricultural production, mainly on the coffee-cocoa binomial. Much of the production continued to be exported to France after independence and, after a period of great export growth, in the 1980s the country entered a serious crisis, due to the maintenance of the economic structure of a colonial character. The crisis was marked by the fall in prices of the main export products, the external debt and its moratorium. Although there is a history of adoption of structural adjustment programs (SAP) in the 1980s, conducted by the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development - World Bank (IBRD), the general effects did not lead to overcoming the crisis.

The Effect of Strategic Vigilance in Achieving Sustainable Competitive Advantage: Analytical Research at Ashur International Bank

This research aims to know the interest of Ashur International Bank management in the role played by strategic vigilance in achieving sustainable competitive advantage by providing decision-makers with proactive and important information about internal and external environmental variables, so the intellectual cover of the problem stems from the extent of the bank's management ability to achieve sustainable competitive advantage in light of the multiple markets of the Iraqi private commercial banks, as well as governmental banks. Hence the importance of the research lies in presenting the accumulation of knowledge for strategic vigilance, which is one of the modern approaches in the field of strategic management, while the sustainable competitive advantage is the most influential in the work of banks due to its connection with their future and their business. The sample consists of (125) individuals (department heads, division and unit officials, and employees) in the surveyed bank. A questionnaire was used to collect data and distributed to a sample of (60) individuals, from which (50) valid forms were retrieved for analysis. The most important conclusion was the bank's management focuses in its strategic thinking on the dimensions of strategic vigilance in different ways according to the vigilance sequence (commercial, environmental, technological, and finally competitive vigilance)

Трансформация структуры государственного долга по составу кредиторов в странах Центральной Азии и Южного Кавказа

The rapid growth of public debt in developing countries in recent years and the increasing risks associated with this process emphasize the importance of research in this area. The article examines one of the key aspects of public debt management — the structure of creditors’ debt portfolio. The object of the study is the public debt of four countries of Central Asia and three countries of the South Caucasus. The states of this region are important foreign economic partners of Russia, their contribution to mutual trade and realization of joint projects is growing. Their role in the global and regional economy is also expanding, including participation in major transport and logistics projects designed to increase the connectivity of Eurasia. The study is based on the data of international organizations on the total volume of public debt, debt to individual external creditors and the dynamics of macroeconomic indicators. The article examines changes in the structure of the main groups of creditors for each country over three long-term periods and analyzes similarities and differences in the observed structural shifts. It also decomposes the indicator of public debt dynamics and estimates the contribution of the economic growth factor and the effects of changes in countries’ debt to certain groups of creditors. The study identified the following key trends in public debt structural changes: 1) the declining role of bilateral loans from developed and developing countries since the 2000s; 2) the continued strong influence of debt raised from international financial organizations and development banks in most countries throughout the period under study; 3) in a number of countries, a gradual increase in market sources of debt financing (domestic and Eurobonds); the increasing role of loans from China — in the Kyrgyz Republic and the Republic of Tajikistan, etc. The study identifies reasons for these structural changes, and concludes with a discussion of the risks associated with the observed shifts in the structure of public debt.

INTERNATIONAL ISLAMIC BANKS’ POPULARITY AMIDST THE ASEAN ECONOMIC COMMUNITY: INSIGHTS FROM INDONESIA AND MALAYSIA

The establishment of the ASEAN Economic Community (AEC) aimed to achieve regional integration among all ASEAN member states, with particular emphasis on financial integration. Islamic banking is in line with the broader goals of the AEC, as an alternative financial system, helping to build a more resilient and inclusive financial system in the region. Because of this resiliency and inclusiveness, Islamic banks have been encouraged to develop into international banks in the ASEAN region through increasing their assets and earnings. This paper aims to examine the position of International Islamic banks (IIb) in the AEC under its conventional banking services: OCBC Bank from Singapore, Maybank and CIMB Bank from Malaysia. Through the analysis of banking trends, this qualitative study compares the level of popularity of those banks in Indonesia and Malaysia, the two Muslim-majority countries in ASEAN, after the initial establishment of the AEC period in 2016 to 2024. The findings indicated that the most popular Islamic financial services in Malaysia are provided by Maybank, while the most well-known Islamic financial services under IIb in Indonesia are provided by CIMB Bank. This paper provides an overview of the globalisation of IIb in ASEAN and fills a research gap on the development of IIb, particularly within the AEC.

Sanctions compliance as a basis for non-performance of contractual obligations

Targeted financial sanctions are routinely used to combat financial crime. As they are endorsed by the United Nations and the Financial Action Task Force, the vast majority of jurisdictions have established regulatory frameworks that make provision for targeted financial sanctions. These frameworks translate into compliance obligations and expectations for so-called regulated entities, which includes banks. Although sanctions have been the subject of much discourse recently in the wake of the escalation of the Russia-Ukraine conflict, the risk of non-performance of contractual obligations due to sanctions compliance has not been explored sufficiently. The objective of this contribution is to shed light on the distinction between compliance with domestic sanctions and compliance with foreign sanctions with specific reference to the risk of non-performance of contractual obligations. It focuses on the basis and legal implications of compliance in each case within the context of the bank-customer relationship. This is undertaken primarily from a South African perspective. The contribution finds that compliance with domestic sanctions may give rise to an interference with contractual performance that is rooted in law, while compliance with foreign sanctions may necessitate an interference that is based on either a contractual provision (force majeure clause) or business and reputational considerations. In both instances, clients of banks are less certain that their payment instructions will be processed and banks, in turn, run the risk of being sued. This tension between sanctions and international banking and finance requires serious reflection by the relevant authorities.

Basel Implementation in Banking in Indonesia

This study’s goal is to determine the application of Basel in banking in Indonesia. Bank Indonesia in issuing banking regulations refers to the Bank for International Settlement (BIS) policies related to liquidity, especially as a reference to protect Indonesian banks from crises caused by insufficient liquidity needs in the Bank. policies from the BIS will be accommodated first by the Islamic Financial Service Board (IFSB). IFSB is used as a reference for regulators to make banking policies. One of the IFSB committees, namely the Basel committee in the field of banking supervision, has issued provisions that are a reference for international banking, namely Basel 1, Basel II and Basel III. This study collects data using a descriptive qualitative methodology and secondary data obtained from literature studies. The results of the research show that banks in Indonesia have implemented regulations according to the Basel III international standard OJK has adopted Basel recommendations and has implemented Basel 1, 2 and 3 although there are some shortcomings but the application of risk management is more effective and efficient. The application of the continuation of Basel III is adjusted to the conditions of national banking proportionally.

Climate risks, financial performance and lending growth: Evidence from the banking industry

This study examines the impact of climate-related risks, specifically physical and transition risks, on bank performance and lending growth. Using panel data from 147 international banks across 37 countries from 2011 to 2020 and climate data from the Carbon Disclosure Project, our findings show that transition risks positively impact both performance and lending growth, whereas physical risks negatively impact performance and loan growth. Consequently, the inclusion of transition risks in banks' risk frameworks has allowed them to benefit from climate-related policy changes imposed by regulatory bodies, but this does not hold true for physical risks. Although banks recognize the severe impact that physical risks may have on their businesses, they still cannot protect their performance against extreme weather events, particularly because most of these events are characterised by a high degree of uncertainty.

Analyzing the research trends for letter of credit using science mapping

Letter of Credit has been used in international transfer of money by exporters and importers for a long time. Thus, it is a very niche and important area in the international trade and banking. Within the scope of this study, 220 publications in the Web of Science database has been reached by using “letter of credit” keywords. There is only one bibliometric analysis on Islamic L/C in the literature but a wider overview is required to gain general perspective about L/C. This is where the originality of this research lies. Bibliometric analysis with VOSviewer and Tableau for these publications covering 1980-2024 has been conducted about citations, organizations, keywords, publication years, sources, fields and countries. As a result; almost half of the publications produced in USA, “Byrne James e” is the most productive author, “Journal of International Economics” is the most cited journal, USA is also leading country in terms of citation, and “Natl. Chung Hsing Univ.” is the leading organization in terms of citation. Moreover, co-occurrence analysis on keywords show that digitalization has huge effect on L/C literature. Keywords like “blockchain”, “smart contracts”, “ethereum”, “BPO” etc. emerged as new trend in the last decade.

Application of the capital adequacy standard according to the Basel III agreement in Islamic banks - an applied analytical study on the Kuwait international bank during the period (2015 – 2022)

The capital adequacy standard according to Basel III is considered one of the most prominent tools for hedging risks, and it is imposed by all central banks. However, Islamic banks find some difficults to apply this standard, as it is intended for conventional banks. An Islamic standard issued by the Islamic Financial Services Board amending the Basel III standard has been issued with the aim of applying it by Islamic banks. However, Basel III remains the most accepted standard in the international banking arena. This study aims to know the possibility of Islamic banks applying the standard issued by the Basel III agreement on capital adequacy, or whether should apply the Islamic standard issued by the IFSB, This study was conducted using the descriptive approach, the case study approach and the analytical approach, which allowed us to reach a set of results, the most important of which is that Islamic banks can apply Basel III standard, but applying the Islamic standard issued by IFSB is more appropriate because it takes into account the characteristics of Islamic banks in the capital adequacy equation.

Research on the Transformation and Development of Investment Bank FICC Business of CITIC Securities Company Limited

In the current financial environment, with the continuous expansion of China's economic output and the continuous expansion of demand for financial services, the mutual influence of the international market is gradually deepening. Deepening the development of FICC business has become the core breakthrough point for the high-quality development of securities companies. Since its development, the FICC business (i.e. capital intermediary business) under the investment banking system of CITIC Securities has been involved in fixed income, foreign exchange, commodities, etc. However, there is still a significant gap in its development compared to international investment banks. Taking the current research status of FICC business at home and abroad as the background, taking CITIC Securities Company as an example, analyze the development status of its FICC business from multiple perspectives. Analyze the development bottlenecks in various aspects such as overall capital scale, traditional business and internationalization level, talent team structure, and technological innovation ability, and propose targeted solutions to improve the risk management system, expand the FICC business chain, accelerate technology investment, improve organizational structure, and leverage synergies to promote the transformation and development of CITIC Securities' FICC business and support the high-quality development of the securities and finance industry.

Penerapan Fintech Dalam Strategi Bisnis Internasional

Financial technology (fintech) has become a major driver of transformation in the global banking sector, offering innovative solutions that not only enhance operational efficiency but also expand the reach and quality of financial services. This study aims to explore how international banks integrate fintech technologies into their business strategies to remain competitive in the ever-evolving global market. By analyzing data from various sources, including case studies of leading banks and academic literature, this study highlights the strategic and operational impacts of fintech adoption. The findings indicate that the implementation of fintech not only improves transaction efficiency and security but also opens new market opportunities and promotes global financial inclusion. However, this study also identifies several challenges in fintech implementation, such as complex regulations and cybersecurity threats, and provides recommendations for effective implementation strategies to overcome these barriers.

Institutional project for global climate regulation

The climate agenda is beginning to have a significant impact on the economic policies of different countries. We argue that the established global climate regulation can be seen not only as a co-ordinated project of forming new institutions, but also as a competition of separate projects, one of which takes the place of the global one. The aim of our paper is to characterise the institutional project of climate regulation as the result of collective choices to adopt and implement measures to internalise the global externalities of climate change. We conducted an institutional analysis of the selection of the main directions and instruments of climate regulation, and highlighted the criteria for this selection. The article shows that in the process of coordination of interests the choice is determined by the correlation of political and economic positions of different interest groups (international organisations, countries, corporations and banks, their associations), and the interests of increasing competitiveness and strengthening control and power in the modern economy come to the fore. As a result, the low-carbon economy project is taking the place of the global climate regulation project. Its core is the energy transition, which involves replacing fossil fuels with renewable energy sources. The low carbon economy project is supported by the narratives of impending disaster, the «Net-Zero» and «Race to Zero campaign». Its main beneficiaries are developed countries as developers and suppliers of relevant technological and management solutions. The financial sector gets its share of benefits. M. Olson's formula «the majority tyrannizes and exploits the minority» is realized. We show that «distribution coalitions», when given additional resources, are willing to continue investing them in collective action to promote a low-carbon economy. We conclude that getting global climate regulation out of the «race to zero» trap involves the development of sovereign climate policies by different countries and groups of countries. These policies do not focus on following specific low-carbon development recommendations, but rather on their own socio-economic development with a view to reducing their impact on the climate system.

The Impact of Human Resource Management on Awareness Employee and Organization

The study aims to investigate the impact of Human Resource Management (HRM) on employee awareness and organizational capacity within the Afghanistan International Bank (AIB). A positive workplace culture, characterized by clear and accurate communication, is essential for employees to perform their duties effectively. Misunderstandings and inefficiencies often arise from unclear communication and inadequate HRM practices. The primary research question guiding this study is: "What is the impact of HRM on employees' awareness and organizational capacity at AIB?" Sub-questions include: "How does HRM influence employee productivity?" and "What is the effect of HRM on employee efficiency?" The hypotheses posit that HRM positively impacts employee awareness, organizational capacity, productivity, and efficiency. Methodologically, the study employs both primary and secondary data collection techniques. Primary data were gathered through the distribution of 50 questionnaires to AIB employees in Kabul, utilizing a Likert scale to measure responses. Secondary data were sourced from related articles, electronic websites, journals, and research reports. Random sampling techniques were used to select participants who were properly briefed on completing the questionnaires. The findings indicate that HRM significantly enhances employee productivity, awareness, and organizational capacity at AIB. Additionally, HRM improves daily operational efficiency, customer service quality, and the effectiveness of information systems. By addressing previous organizational challenges, HRM enables employees to maximize the benefits from increased awareness and capacity, ultimately contributing to the bank's overall performance.

The Effect of Automated Teller Machine (ATM) On Customer Satisfaction of Digital Services Users at Afghanistan Selected Commercial Banks (Afghanistan International Bank, Azizi Bank and Islamic Bank of Afghanistan)

This study investigates the impact of Automatic Teller Machines (ATMs) on customer satisfaction among users of digital services at commercial banks in Afghanistan, specifically Afghanistan International Bank, Azizi Bank, and Islamic Bank of Afghanistan. The banking sector in Afghanistan requires further development in expanding ATM infrastructure and enhancing customer satisfaction through improved user experience and support services. Utilizing a quantitative approach with multiple linear regression analysis, the research examines primary data collected through questionnaires as well as secondary data sources. The findings reveal a significant positive relationship between ATM usage and customer satisfaction. To enhance ATM availability and customer satisfaction, commercial banks in Afghanistan should strategically install and maintain ATMs, focusing on key locations in Kabul. Investing in ATM facilities can improve various dimensions of customer satisfaction.

The genesis of international banking regulation: A literature review using text analysis

The genesis of international banking regulation: A literature review using text analysis

Sustainable Development Goals Need for India to Refocus on Measurement and Monitoring

The first and most important Global Goal set in the Charter of Sustainable Development Goals (SDGs), adopted by the United Nations in 2015, is “NO POVERTY.” Countries estimate the extremely poor population based on the International Poverty Level (IPL), which uses Global Purchase power parities (PPP) set by the World Bank International Comparison program. Some claims state that India has made substantial progress in fighting extreme poverty during the last few decades. Published data shows there is no headcount below the National Poverty line. This paper attempts to study the relevance of the national statistical data sets on the limits and levels for the poverty line in India as against the international poverty level, taking into consideration of the Purchasing Power Index, Gross GDP, and per capita GDP, Gross National Income, and Per capita Income, minimum wedge regulations, and the critical parameters for the Hunger Index.

Science parks: analysis of international experience and development prospects in Ukraine

The object of the research is the issues related to the creation of science parks in Ukraine at a new level in the process of its post-war reconstruction. In this paper, the main focus is on the analysis of the very concept of «science park» and the experience of some international ones, which are most suitable for the domestic plans for the transformation of the Ukrainian economy and its social infrastructure. Also researched the initiative of the Kharkiv city government to create the so-called «science quarter», which would absorb all the best that exists in the world in the field of science parks, and would have its own «highlight». As a result of this study, it was established that the creation and functioning of science parks is an important component of the modern world economy, which should be given serious attention in the process of post-war transformation of the Ukrainian economy. Moreover, the process of developing a strategy for the construction of such science parks should be started now, without waiting for the end of the war. A good example of this is the start of work on the project to create a science park in Kharkiv called «Science Quarter» as part of the development of a city recovery plan with the help of specialists from various international organizations, universities, banks and funds. The article analyses the activities of some similar science parks in Poland, which can be used as a guide in this process, and provides recommendations for the improvement and enhancement of certain basic elements of the future Kharkiv science park. As a result, it was concluded that thanks to the hard work of the city authorities with the support of international institutions, active work is being done to develop a city reconstruction strategy at a fundamentally new level in Kharkiv, within which a significant place is given to the implementation of the «Science Quarter» project. The success of the latter will depend not only on the experienced team of specialists implementing this project and the receipt of the necessary funding, but also, first of all, on the success of our defenders in repelling russian aggression.

The Role Of International Financial Reporting Standards (IFRS) In Enhancing The Quality Of Financial Reporting Applied Research In a Sample Of Iraqi Banks Listed On The Iraq Stock Exchange

The aim of the research is to show the importance of applying IFRS standards at the international and local levels in Iraqi banks and its reflection. This research used statistical methods and indicators, as the data were collected through the distribution of questionnaires to a sample of international development banks, and Gulf commercial banks, to accountants and auditors working in Iraq, where they were distributed to (226) participants and analyzed using SPSS v 26 and Amos v 26, as well as a study comparing the impact of the application of IFRS-9 before and after by analyzing the financial statements of the above banks. The research included the study of several topics, including an overview of IFRS standards and the quality of financial reports, the definition of international financial reporting standards, the objectives of financial reports prepared for public use, the importance of IFRS, the quality of financial reports, the factors affecting the quality of financial reports, the importance of IFRS standards, the factors affecting the quality of financial reports, the challenges faced by banks in preparing financial reports, the application of IFRS standards, the impact on the performance of banks, the application of IFRS standards, the fair presentation of the financial position, the application of IFRS standards and the presentation of cash flows to banks, and the reality of adopting IFRS standards in Iraqi banks. The research concluded that the presence of interest of Iraqi banks in the application of financial reporting standards in order to enhance the quality of financial reporting, that the level of impact of International Financial Reporting Standards (IFRS) in enhancing the qualitative characteristics of accounting information among Iraqi banks (the research sample), all of which increased the application of IFRS, reflected positively on the qualitative characteristics of accounting information. The research contributes to financial institutions such as banks and banks as a means of providing external users, investors and at all levels with the financial data and information necessary to make rational and correct decisions after the application of IFRS standards.