Large Financial Institutions Research Articles

Integration of investor behavioral perspective and climate change in reinforcement learning for portfolio optimization

Addressing environmental impact is increasingly imperative for individual investors and large financial institutions, making it a key objective of socially responsible investing. However, there is a noticeable gap in research on integrating sustainability and low-carbon considerations into machine learning-based portfolio optimization. To meet this challenge, this study introduces a Portfolio Emissions Sentiment Attention Aware Reinforcement Learning (PESAARL) model based on the Proximal Policy Optimization (PPO) algorithm to optimize a portfolio of Dow Jones Industrial Average (DJIA) stocks. PESAARL uniquely integrates environmental impact considerations, specifically carbon footprint using the firm level scope 1 and scope 2 emissions data, alongside firm-level investor sentiment and attention, into the investment decision-making process. Through multiple experiments, PESAARL demonstrates significant advantages, in terms of financial and environmental performance, over the benchmarks.

Reserves Were Not so Ample After All

Abstract We show that the likelihood of a liquidity crunch in wholesale US dollar funding markets depends on levels of reserve balances at the financial institutions that are the most active intermediaries of these markets. Heightened risk of an imminent liquidity crunch is signaled by significant delays in intra-day payments to these large financial institutions over the prior two weeks. Our study contributes to the broader dialogue surrounding the Federal Reserve’s ongoing quantitative tightening (QT).

"Evolving Horizons: The Journey And Impact Of LIC's Landmark IPO"

The Initial Public Offering (IPO) of the Life Insurance Corporation of India (LIC) in May 2022 marked a pivotal transition for one of India’s largest financial institutions from a state-owned entity to a publicly listed company. This move was part of the government's broader strategy to divest its stakes in public sector enterprises, aiming to enhance operational efficiencies, improve transparency, and maximise shareholder value. Navigating through a series of legislative amendments and complex valuation challenges, the IPO drew substantial attention from both domestic and international investors, reflecting strong confidence in LIC's market fundamentals. This paper provides a detailed review of the IPO process, the subsequent market response, and its impact on LIC’s business operations and governance structure. It discusses the strategic motivations behind the IPO, the execution challenges, and the implications for future economic reforms in India. By analysing LIC’s performance post-IPO, the study highlights the critical role such transformative events play in modernising state-owned enterprises and integrating them with global financial markets, projecting significant implications for similarentities considering public offerings.

Responsible urban development policy: criteria, subjects, prospects

This article examines the primary directions of contemporary urban development policy, along with the issues and contradictions associated with its scientific research and practical implementation. The study aims to conceptualize the concept of “responsible urban development” as a complex of approaches and practices that hold promise for integration into practical urban and regional development policies, and to typologize potential approaches to implementing such policies. The authors use an institutional approach, the methodology of identity studies, the structural-functional approach and a case study. The article investigates quantitative and qualitative indicators, the key challenges and tasks of urban development policy, with a particular focus on the resources of modern urban development. The authors note that relying on a limited set of indicators does not provide the capacity for decision-making necessary to update and transform urban development policy to ensure its ability to promptly and flexibly respond to the numerous problems and challenges arising under conditions of socio-political instability. The article addresses and analyses several cases of contemporary urban development and the implementation of corresponding policies. Based on this analysis, the authors conclude that one of the central and most pressing issues in the policy of responsible urban development and the socio-political dynamics of cities is the inefficiency of the communication process between civil actors and stakeholders, on the one hand, and city authorities and the city administration, on the other. This communication deficit can only be partially addressed through digitalization, as the primary obstacles to improved communication are administrative barriers and the dominance of the interests of certain groups, such as large corporations and financial institutions.

Agency independence and credibility in primary bond markets

AbstractVast literature studies Independent Regulatory Agencies (IRAs). We contribute by studying the benefits of independence when the agent's work is relational and by studying developing and developed democracies worldwide and over many years. We do this by studying national Debt Management Offices (DMOs)—the state agencies that plan, issue, and manage national debt. DMOs define the benchmark assets on which capital markets and monetary policy depend—industry standards—and their decisions have allocative implications. We argue that formal independence of DMOs from political decision‐makers is a costly signal to large financial institutions on the government's potential to service and repay its debts. We introduce a new country‐year dataset of DMO legislation for 75 developing and developed democratic countries in the period 1950–2013. We find that DMO independence is likelier following debt defaults, war, high inflation, and high debts, and that DMO independence increases sovereign debt credibility.

Comparison of Sharia Governance Between Bank Muamalat and Bank BTN Syariah

Every business has a management strategy to maintain and develop its business, including Sharia financial institutions. The large potential of the Islamic finance industry has a positive impact on national economic growth, therefore it is important to maintain this stability. Good governance is one of the things that must be paid attention to, as well as the governance of Sharia financial institutions must comply with Sharia principles, to maintain the trust of stakeholders in the Sharia banking and finance industry. Moreover, there are rumors that two large sharia financial institutions will merge . This research aims to compare Sharia governance between Bank Muamalat and BTN Syariah, which have significant differences in background. This research uses qualitative methods with a library study approach, and analyzes and selects relevant library sources. Research result comparison of two Sharia banks that are planned to merge into a larger Sharia bank , although both banks follow Sharia governance principles, they both have different approaches due to different focuses and backgrounds. Bank Muamalat, as a pure sharia bank, has a more comprehensive sharia implementation and structure. Meanwhile, BTN Syariah as a sharia business unit of a conventional bank, focuses more on implementing sharia principles in housing products. Both banks demonstrate a strong commitment to Sharia principles and comply with supervision, the Sharia Supervisory Board (DPS), and applicable laws.

Tinjauan Hukum Penggunaan Debt Collector dalam Penagihan Hutang

Third party debt collectors provide collection services which are usually used by financial institutions to carry out credit collections. Large financial institutions such as banks have hundreds or even thousands of customers they must serve. The large number of customers makes it difficult for these financial institutions to serve customers internally. Of the many customers we have, there are quite a few customers who are disobedient or even default on the agreements they have made. Because of this inability, most large-scale financial institutions such as banks will ask for help from third parties to replace them in providing services to customers. One of the third parties whose services are used is a debt collector or what is usually called a debt collector. This third party moves to collect debts from debtors who are in default on the loans they have made. This research aims to analyze the legal view or juridical review of debt collectors who collect debts from debtors.

The penal Responsibility of the special moral Person on the Economic Crimes

The recent economic، social and technological developments resulted in the emergence of multiple private large economic and financial institutions or corporations (the "Corporations") that perform a range of activities with significant influence on the society. Indeed، this can bring great benefits to the society if their activities are properly made، while cause severe damage if they corrupt. Hence، the dangers caused by these corporations and the expanding scale of their damage can lead to economic crime، which is far greater than the harm caused by natural persons. Thus، it is no longer acceptable to ignore such crimes، particularly when the civil penalty is no longer appropriate to ignore their deviations on these corporations which brought huge profits to them. This created an advanced jurisprudence calling for the necessity of bringing punitive measures against these corporations in order to prevent and lessen their dangers to the society. The rapid transition from socialism to capitalism in Iraq after 2003 led to a sharp increase in the number and diversified activities and economic openness that controlled the economy، while the criminal jurisprudence was steps behind such fundamental changes. This research aims to demonstrate the importance of designating criminal responsibilities to these corporations to protect the society، and to identify the legal loopholes in Iraq on how to address them. Despite the existence of the principle of “publicity” for economic crimes or not economic crimes، according to the conditions that must be met in order to be take responsibility، under Article (80) of the Penal Code No. 111 of 1969، hitherto this article alone cannot go side-by-side with the dangers created by these corporations، which requires exclusive fundamental amendments، introducing more legislation providing strict punitive measures against these corporations aiming to safeguard the overall economic system.

Giao dịch thuật toán trên thị trường chứng khoán dưới góc nhìn công nghệ

The power of the technological revolution, combining technology and finance, has significantly transformed the way transactions are conducted in the stock market. Algorithmic trading is not only a new trend but also an essential requirement in an increasingly complex market that demands flexible and rapid adaptation. Large financial institutions such as major stock trading companies, investment funds, and individual investors are all seeking to leverage the power of technology to optimize trading performance and maximize profits. In this paper, we provide an insight into automatic algorithmic trading in the stock market from a technological perspective: how algorithms operate, their benefits, as well as the challenges and risks investors have to deal with when using them. The paper employs synthesis, comparison, and contrast methodologies based on published research to evaluate and provide recommendations for algorithmic trading. Our evaluation confirms that algorithmic trading is an inseparable part of the modern stock market.

Seguros para os pobres: ironias da financeirização da pobreza na África do Sul

This text makes a Bibliographical Critique of the book "Ironies of Solidarity: Insurance and Financialization of Kinship in South Africa", written by the Dutch anthropologist Erik Bähre and published in 2020. The book brings an original reflection on the processes of financialisation of everyday life and poverty in the so-called Global South. The sensitive ethnography, conducted in Cape Town, shifts assumptions and brings a relevant contribution to social studies of the economy and the relations between moralities and markets. More than that, it brings relevant insights and methodological propositions for an approach to global financial capitalism based on the contradictions and ironies produced in people's daily lives. The book draws attention to how insurance, especially in its form marketed by large financial institutions, is a type of solidarity distinct from the forms usually studied by anthropologists. Anthropological theory has devoted itself more thoroughly to the study of community forms of solidarity and usually apprehends "the market" or "neoliberalism" as a force that corrupts the spheres of intimacy and personal ties. The book allows us to develop more sophisticated strategies for understanding such social processes from an anthropological approach.

Analysis of the Impact of Enterprise Environmental, Social and Governance Performance on High-quality Development: Taking Industrial and Commercial Bank of China as an Example

ESG (Environmental, Social and Governance) advocates the transformation of enterprises from the pursuit of their own interests to the pursuit of social value maximization, which is highly consistent with the high-quality development goals, and is an effective starting point for enterprises to practice the new development concept and promote high-quality development. Under the “Dual Carbon” target, China has successively issued a series of measures to support the development of ESG. However, due to the short development time, the current domestic ESG standards are not unified, and the degree of improvement also needs to be improved. The mechanism of how to use ESG performance to promote high-quality development is not clear. This paper discusses the mechanism of the ESG performance on high-quality development in the three dimensions of environment, society and governance. Research shows that in the financial industry, for large financial institutions such as industrial and Commercial Bank of China, social responsibility has the highest weight of social responsibility, indicating that the performance of banks and financial institutions in the social level is much attention. The weight of environmental and corporate governance dimensions is relatively low, but still important. Financial institutions need to consider their environmental impact and sustainability while pursuing economic benefits. Corporate governance responsibility involves the internal governance structure, transparency, compliance, and risk management of the company, which are key factors in maintaining long-term stability and trust.

How to deter earnings manipulation in Chinese banks? A study from the combined effects of corporate governance, enterprise resources, and supervisory mechanisms

AbstractThe study proposes methods for deterring earnings manipulation in Chinese commercial banks, recognizing it as an ongoing problem with the potential to destabilize investors and financial markets. The increasing integration of the global financial system has heightened the importance of addressing this issue, given the systemic risk posed by large individual financial institutions. Utilizing the Fuzzy Set Qualitative Comparative Analysis method (fsQCA) on 139 Chinese commercial banks in 2021, the paper explores factors influencing banks' earnings manipulation behavior. The study reveals several key findings: (1) Factors associated with reducing the likelihood of earnings manipulation in commercial banks are diverse and multifaceted. (2) Multiple paths exist to achieve earnings manipulation, categorized into Resource‐guided, Corporate Governance, Resource and Supervisory Mechanism, Supervisory Mechanism, and Corporate Governance as the main mechanism. Among these, the Supervisory Mechanism exhibits the highest consistency. (3) Hiring “Big Four” accounting firms as auditors emerges as a significant deterrent against earnings manipulation in commercial banks. (4) Banks with powerful major shareholders affiliated with the government or ample resources are effective in deterring earnings manipulation. These two factors are complementary, while a bank's growth prospects and industrial competition serve as substitute factors.

Performance-Related Pay, Enhance Motivation Towards Organization Development? Empirical Evidence from Pakistan

Employees seek employee incentive strategies to assure the organization's long-term development. Extensive research has examined the function of Performance Related Pay (PRP) and Level of Motivation (LoM) in sustaining organizational development. Assessment is significant due to the fact that it is a hotly contested research topic and an essential topic for academic and business discussions. Thus, this study empirically demonstrates the significance of PRP and LoM to organizational growth. The findings are applicable to ABL and Bank Al-Falah, the two largest financial institutions in Pakistan. Two Pakistani institutions comprise the specified context. Even though the PRP literature describes numerous scenarios for developed economies, traditional industries in developing economies receive scant attention. A multiple regression analysis revealed that PRP and LoM have a significant, positive effect on organizational growth. The article also discusses theoretical and managerial implications.

Digital technologies in the financial sector of Kazakhstan

Digital systems play an important role in the activities of various fields, including the tasks of the financial sector. Simultaneously with the innovative development of the banking system in the field of information technology, in order to further improve the processes of providing services, significant steps are being taken towards improving the quality of services provided, as well as in the organization of business processes of second-tier banks. The authors investigate the impact of large financial institutions on the level of digital technology development: Kaspi Bank and Freedom Bank. The object of the article is to study the principles and models of action on the basis of which these digital ecosystems work. The ways of their development and functioning in the activities of two commercial banks are being investigated. This research is relevant due to the fact that in the context of the introduction of new technologies, for example: digitalization, as well as, in general, the limits and boundaries of services offered by the largest market players are being overcome, which creates the potential to accelerate the development of a competitive and secure digital financial market of a new generation. In this article, the authors define the concept of the ecosystem of banks and analyze large Kazakhstani financial institutions based on their financial services. Based on the data analysis, conclusions are drawn and the main conclusion is proposed, which determines the main direction of development for the development of financial digital ecosystems. Currently, two types of ecosystems are actively developing in Kazakhstan. In the first of them, the bank is the core of the ecosystem of non-financial services, in which it acts as a settlement operator. In the second case, a large non-financial company begins to build its own ecosystem of lifestyle services and eventually thinks about creating its own settlement center. At the same time, the digital ecosystem is definitely not limited only to its own services, but also integrates with partner solutions. At the same time, the ecosystem assumes, first of all, the transformation of human resources, their involvement in the process.

Electronic Financial Services Market in RK: Problems and Prospects of Development

Main problem: At the present stage of life, Innovations in the financial sector contribute to the optimization of financial intermediation and, in turn, stimulate economic growth. Financial innovations increase the efficiency of the allocation of savings capital to investment capital, as well as increase liquidity in the markets. As the digital economy has developed, the functionality of traditional large financial institutions has been partially replaced by financial technologies (FinTech). FinTech involves the convergence of traditional financial services with mobile services, social media services, big data aggregation and processing, and cloud technologies.\ Purpose of this article is to identify the main directions of the electronic financial services market in the Republic of Kazakhstan, identify the main problems and prospects for the development of the financial sector of the economy. Methods: The work used general scientific methods of comparative system, vertical and horizontal analysis, structural and functional method, analytical techniques, economic and statistical research methods. The results and their significance: the authors identified the main directions of digitalization of the financial sector of the modern economy, noted the role of FinTech companies and services in both theoretical and practical terms, and provided relevant approaches to the definition of this concept in the economic literature. The main reasons and factors for the development of this direction of digitalization of the financial sector are substantiated, including the concept of financial accessibility, the advantages and disadvantages of FinTech, various approaches to their classification, country and regional characteristics, and an analysis of development trends. The crowdfunding direction of FinTech is noted, approaches to its definition and classification are given, the advantages of the crowdfunding mechanism are revealed, and its role in the modern economy is analyzed. The trend of algorithmic trading development as the most important direction of digitalization of the financial sector is investigated. A detailed analysis of mobile financial services as one of the fastest-growing areas of FinTech is carried out, approaches to their classification are given, factors stimulating the growth of mobile payments, country and regional characteristics are substantiated. The main directions of digitalization of the insurance sector are analyzed, reasonable conclusions about the advantages of InsurTech are made. Keywords: digitalization of the financial sector, FinTech, financial accessibility, crowdfunding, algorithmic trading, mobile financial services, mobile money, InsurTech.

A legal analysis of open banking in the promotion of financial data antitrust in China

Abstract Open banking develops quickly in China where several large state-owned and private commercial banks have participated in open banking, but the legal foundation is insufficient. The theoretical basis of developing open banking lies in breaking down ‘Data Silos’ to promote the free circulation of data and strengthen competition in the financial data market. Open banking could promote ‘financial data antitrust’, which means reshaping the competitive landscape through promoting the share of monopolized financial data owned by large financial institutions to break their monopoly status in the financial market. It may also bring monopoly risks to financial institutions such as data aggregators and technology platforms. Based on the regulatory and legislative experience of other regions, China should continue the ‘government-guided’ model for developing open banking and pay more attention to protecting financial consumers and increasing their data control rights to better balance privacy protection and financial data sharing. China should set up a rule for ‘financial data right separation’ and formulate antitrust regulations for data aggregators. Based on the special status of Fintech platforms, China should not copy the open banking models of developed countries, but create a ‘two-way sharing’ open banking mechanism to prevent the risk of platform data antitrust.

When gambling for resurrection is too risky

The financial crisis pushed some large life insurers to the brink of insolvency. Instead of gambling for resurrection, insurers in severe distress pulled back from risk taking. They systematically reduced risk appetite relative to insurers with low default probabilities across many jointly available individual incremental investment opportunities. Importantly, as insurers in distress reduced risk even within investment opportunities with identical treatment, regulatory constraints alone cannot explain these findings. This evidence suggests that franchise value can make gambling for resurrection too risky, even following severe shocks to large financial institutions' solvency. Actions that clarify future prospects, like stress tests, may be needed to support risk appetite during crises.

INTEGRATION OF DIGITAL MEANS IN THE FINANCIAL SPHERE: THE POTENTIAL OF CLOUD COMPUTING, BLOCKCHAIN, BIG DATA AND AI

The integration of digital means in the financial sphere nowadays is not just a necessity, but also a strategic step that determines the further development of this industry. The modern world of finance bets on high technologies, namely on such key areas as Cloud Computing, Blockchain, Big Data and Artificial Intelligence (AI). The purpose of our article is to conduct an in-depth analysis of the potential of Cloud Computing, Blockchain, Big Data and Artificial Intelligence (AI) technologies in the context of their impact on the financial sphere. The object of our article is the financial sphere, including banking, the investment sector, insurance, and other component industries that interact with finance. As a result of the conducted research: the advantages and disadvantages of the integration of digital means in the financial sphere are considered; the potential of Cloud Computing, Blockchain, Big Data and AI in the financial sphere was investigated; it is emphasized that all these technologies are already changing the financial sphere and have great potential for further development. Thanks to them, financial institutions can be more competitive, respond faster to changes in the market, and provide more innovative services for customers. Therefore, the integration of these digital means into the financial sphere is a necessity and a key direction for the further development and modernization of the industry. Cloud Computing, Blockchain, Big Data, and Artificial Intelligence (AI) technologies enable financial institutions to increase efficiency, reduce costs, and improve customer service.The challenges of implementing new technologies in the financial sector include the absence of a unified regulatory framework, high costs associated with transitioning to digital platforms, and resistance from traditional players. These challenges can be addressed by creating clear regulations, providing financial support to companies transitioning to digital technologies, and fostering partnerships between innovative startups and large financial institutions for collaborative development and implementation of technological solutions.

Review of Recent Research Directions and Practical Implementation of Low-Frequency Algorithmic Trading

Financial trading has undergone substantial technological evolution, with automation taking center stage, leading to approximately 80% of US market trades being executed by computer systems, predominantly by large financial institutions. The rise of algorithmic trading, poised to engage smaller entities, international markets, and individual traders, drives this article’s exploration of research in this field. Providing a comprehensive overview, it outlines the evolution of trading practices and defines algorithmic trading as a computer-powered tool aiding investment decisions. The article details the steps involved in algorithmic trading, covering opportunity identification, quantitative research, implementation, testing phases, and continuous monitoring. It also examines prevalent programming languages and open-source platforms facilitating algorithm development. Focusing on trading frequencies across financial instruments, it delves into high-frequency trading as a subset, alongside methodologies like technical and fundamental analysis, time series analysis, option trading strategies, and machine learning techniques used in algorithm creation. Categorized by trading frequencies, analytical approaches, involved financial instruments, and analysis objectives, the reviewed papers contribute insights into algorithmic trading’s diverse landscape and methodologies, offering valuable perspectives for industry participants and researchers alike.

Automated Passive Income from Stock Market Using Machine Learning and Big Data Analytics with Security Aspects

With the evolution of Machine Learning, the Internet of Things (IoT), and Big Data Technologies, digital data has increased exponentially. To handle and process such a large bunch of data, high-performance computers are used across various fields. One of the fields has been the financial capital market of stocks, bonds, commodities, foreign exchange, and cryptocurrencies, where supercomputers essentially trade securities with high computational ability and intelligent algorithms. Large financial institutions with significant capital spend a lot of money on programmers and data analysts to develop the best accuracy trading algorithms to drive the overall market. A novice trader or investor with less to no experience in financial markets feels it difficult to search for good trades or stocks to invest their hard-earned money on a short to long-term time horizon. They rely on expert advice for stock recommendations and sometimes end up making significant losses. This paper focuses on developing a universal trend trading indicator that can analyze and predict the overall future trend of any stock, bond, commodity, forex, or cryptocurrency with the highest possible profitability. The historically traded extensive dataset of stock prices and investment reports of large financial institutions worldwide are gathered. Various machine learning and decision-making models are employed to perform technical and fundamental analysis across multiple securities. The output of the trend trading indicator is displayed on charting platforms, which can provide entry-exit levels at which even novice investors can decide where to invest their money. Multi timeframe analysis is deployed to predict short-term, mediumterm, and long-term overall trends, thus increasing the output accuracy. The indicator is helpful for all kinds of retail traders and investors worldwide who struggle to earn profits from financial markets. Our proposed system was able to achieve a profitability of 86.28% annual returns. The entire system, along with the trading orders, is automated so that anyone can earn extra passive income every month from the stock market.