National Bank Research Articles

Merger and Acquisition of Indian Banks and Their Impact on its Financial Performance & Shareholder Wealth

This study investigates the financial performance and shareholder value outcomes of mergers and acquisitions (M&A) in the Indian banking sector. Through the analysis of three major bank mergers—State Bank of India and its associates, Bank of Baroda with Vijaya and Dena Banks, and Punjab National Bank with Oriental Bank of Commerce and United Bank—the research evaluates operational performance, profitability, and shareholder returns pre- and post-merger. Using financial ratios and t-tests, the study identifies significant changes in financial metrics and shareholder wealth. The findings suggest that while M&A can enhance operational efficiency and shareholder value, the results vary based on individual merger circumstances and integration strategies.

The Essence of Commercial Bank, principles and functions

The paper describes the relevance of the topic, sets the goal and objectives, specifies the theoretical and methodological foundations, specifies that the banking system guides the country's payments and settlements system, defines the essence, principles and functions of a commercial bank. The banking system is a wide range of diverse services, starting from traditional savings-loan and settlement-cash operations, ending with modern monetary credit and financial instruments. The bank is an intermediary link that attracts the temporarily free resources of economic subjects and supplies them to those subjects of the economy who experience a temporary shortage of these resources. The bank assumes the risk of non-return of resources. The effective operation of the payment system in any country requires the improvement of settlement operations and their technologies. Banks are the centers through which the majority of settlement and payment transactions are carried out. Settlements and payments of an individual or a legal entity, as well as of the entire economy, are carried out through banks. The theoretical and methodological basis of the work is - the researches of Georgian and foreign scientists on the regulation of the banking sector, the analytical works of various authors, the information-statistical and analytical materials of the National Bank of Georgia. Key words: Banking system, active bank transactions, passive operations.

The Effects of Oil and Non-Oil Export Revenue on Income Inequality in Angola

This study examines the impact of oil and non-oil export revenue on income inequality in Angola from 1995 to 2023, aiming to contribute to the existing discourse surrounding the empirical effects of these revenue streams on income disparity within the Angolan context. Our contribution is twofold. First, there is a notable scarcity of empirical studies addressing this issue within the Angolan economy; the prevailing literature often relies on aggregated or grouped data. Second, this research pioneers the application of the Palma Ratio as a metric to assess the relationship between natural resource revenues and income inequality in Angola. To ensure the reliability and validity of our econometric analysis, we conducted rigorous pre- and post-estimation tests. This research employs a quantitative correlational design to ascertain the existence and nature of the relationship between revenues from oil and non-oil exports and income inequality in Angola. A comprehensive statistical and econometric analysis was performed utilizing data from national sources, including the National Bank of Angola, and international databases, such as the World Bank. Employing the Ordinary Least Squares (OLS) method, our findings reveal that oil export revenues significantly exacerbate the income inequality gap between the wealthiest and the poorest segments of the population. In contrast, non-oil export revenues are found to mitigate this disparity. Based on the empirical evidence presented, this study advocates for the allocation of a portion of oil revenues towards social programs, particularly in health care and education subsidies, to promote a more equitable income distribution and enhance social welfare in Angola.

PROBLEMS AND PROSPECTS OF THE DEVELOPMENT OF BANKING REGULATION AND SUPERVISION IN UKRAINE

Effective banking regulation and supervision are key factors for ensuring the stability of the national banking system of Ukraine. The purpose of this article is to analyze the peculiarities of banking regulation and supervision in Ukraine in order to identify problems and possible ways of development, including in the context of world experience. The article examines the theoretical aspects of the essence of the concepts of banking regulation and banking supervision. The main indicators of the banking system of Ukraine for 2020-2024 and the mechanism for identifying risks in the activities of banking institutions are also considered. The global trends in banking regulation at the current stage are its centralization, the concept of risk-oriented supervision, the introduction of new financial technologies, the development of the principles of proportional banking regulation. The main positive and negative methods of supervision in the banking sector are singled out. It has been proven that the conditions of a full-scale military conflict significantly undermined the development of the banking system of Ukraine. The destruction of infrastructure, loss of customer confidence, risks to the bank's loan portfolio and capitalization have become major problems. In addition, the decrease in liquidity and the growth of inflation risks create serious challenges for the banking system. The degree of suitability of world models in terms of the priority tasks of the state regarding the regulation of the banking sector is analyzed. Directions for improving banking supervision through improvement of banking activity licensing procedures are proposed; introduction of permanent monitoring of the activities of domestic commercial banks, in particular their financial condition; implementation of constant monitoring of compliance with banking regulations and current legislation; introduction of permanent inspections of banking activities; implementation by commercial banks of ongoing internal control and external audit control; developing and sending supervisory instructions for banking institutions regarding the implementation of Basel III standards.

PROVISION OF BANKING SERVICES IN THE CONTEXT OF THE SUSTAINABILITY OF THE BANKING SYSTEM: CURRENT TRENDS AND DEVELOPMENT DIRECTIONS

The article examines banking services in the context of the stability of the banking system: current trends and directions of development. The current stage of development of the global banking system operates under conditions of intensified competition and crisis phenomena in financial markets. One of the main factors in the successful development of the domestic banking system is the policy of constant innovations.Currently, innovation is a key factor in the stability, competitiveness and sustainable economic growth of domestic banks. The sustainable development of the national economy is accompanied by an increase in the volume of financial transactions and an increase in the importance of the domestic banking sector. The banking system, being one of the most important links of the market economy, affects the life of society in many ways. It not only provides a mechanism for interregional redistribution of monetary capital, but is also a key element of the settlement and payment mechanisms of the country's economic system. This fact determines the importance of the banking sector in the socio-economic development of the state.The current realities of the banking business contribute to the identification of the main catalysts of domestic banking innovation activity: globalization of world financial markets and markets of banking services; growing competition from the banking and non-banking sectors; the world financial crisis. The above-mentioned factors significantly affect the qualitative and quantitative composition of banking institutions and their services and lead to key changes in consumer behavior, thus leaving banks with the only opportunity to preserve and increase their competitive advantages through the introduction of innovations, the direction of which determines the strategy for the development of the banking sector on medium-term perspective. Based on the results of the research, it was established that the problems accumulated in the national banking system can be solved by applying the experience of Great Britain, and the main postulates should be adapted to the national banking system, which will contribute to the development of the domestic market of banking services and increase the stability of the national banking system.

The Influence of Financial Literacy, Digital Literacy, and Social Capital on Digital Bank Financial Inclusion through Ease of Use an Intervening Variable

The growth of internet users in Indonesia has experienced a significant increase year by year, reaching 78.19% of the total population in 2022-2023. This indicates a broader penetration of the internet among Indonesian society. The national digital banking transaction value shows an increasing trend, reaching Rp5,098.6 trillion in August 2023, reflecting the growing adoption of digital financial services in Indonesia. This increase is supported by the ease of access offered by banks and online financial management, in line with the preferences of the digital era's growing generation, thus Generation Z quickly and comfortably adopts digital banking services. This brings the potential for greater financial inclusion among the younger generation.This study employed a quantitative approach with a causal purpose, applying the Technology Acceptance Model (TAM), Theory of Planned Behavior (TPB), and Theory of Reasoned Action (TRA). The dependent variable (financial inclusion), the intervening variable (ease of use), and the independent variables (financial literacy, digital literacy, and social capital). This study, which includes 200 Bandung City-based Generation Z digital bank customers, uses the Structural Equation Model (SEM) based on Partial Least Square (PLS) as its analytical tool. The study's findings demonstrate that Generation Z's digital bank customers in Bandung City already have very high levels of social capital, financial inclusion, digital literacy, and ease of use. Furthermore, it was shown that the effects of digital literacy, social capital, and financial literacy on financial inclusion might be moderated by simplicity of use. Financial inclusion is also significantly impacted directly by social capital, digital literacy, and financial literacy. It is intended that this research will provide a greater understanding of the variables impacting Generation Z's financial inclusion and how those characteristics may affect policies aimed at boosting the availability and use of financial services in the digital age.

Quantitative Studies on Hacking Methods and Types of Cyber-Attackers of Electronic Banking Networks

Cyber-attacks on electronic banking networks are a growing concern in today's digital age. Cybercriminals try to penetrate the Electronic Banking infrastructure, by bypassing all protection mechanisms, and the media continue to report new bank cyberattacks and thefts. The study attempts to identify the impact of attacks and methods that threaten bank networks. To know the kinds and methods of the attackers of bank networks, a questionnaire was prepared and distributed to the selected banks and their branches, namely Omdurman National Bank, Bank of Khartoum, and Bank of Sudan. From the studied sample, competitors stood out as the most qualitative network attackers on the banks, while penetration through the Internet was one of the ways through which the attacks on the financial banks networks could be carried out. The sample of the study showed that the quality of bank attackers are the competitors, with a rate of 29.2%, which is considered the largest percentage of all assumptions and the highest network attacker’s method Through the internet with a rate of 52.7%. The study concluded that Competitors and Internet have highest impact per methods and kinds of attacks respectively. This conclusion supports the problem statement since the impact was known within the case study Banks.

Analysis of Monetary Policy and its Effect on Indian Economy

Financial strategy matters for development both in the short-run and long-run. This study centres around the assessment of financial strategy and its effect on Indian economy. By means of observing the degree of cash supply, the national bank endeavours to safeguard cost strength. The review is finished utilizing different markers and factors like Total national output as reliant variable and repo rate, invert repo rate, joblessness, Unfamiliar direct venture and expansion as free factor. Utilizing these factors, it was figured out that the economy of a country is absolutely reliant upon these variables. The boundary of ascertaining Gross domestic product was unique. The target of the exploration is to know viability of financial approach in India and to examine the effect of chosen money related instruments on Indian Economy.

Enhancing Counterfeit Banknote Analysis: Case Studies Using TOF-SIMS

Counterfeiting banknotes poses a significant threat to economies worldwide, particularly in developing countries where cash transactions remain predominant. Despite advancements in security features, counterfeiters continue to adapt, necessitating more sophisticated analysis methods. Time of flight Secondary Ion Mass Spectrometry (TOF-SIMS) offers a powerful approach to surface chemical imaging and depth profiling of counterfeit currencies. Real cases of five different counterfeit Lebanese banknotes are studied, using TOF-SIMS to address specific questions regarding the composition and placement of replicated security features, gaining insights into counterfeit banknote production and the raw materials used. The findings provide essential information to decision-makers at the national bank, supporting the design of future currencies through the selection of security features best suited to the local market, thereby enhancing protection against financial fraud..

ROLE OF FINANCIAL INSTRUMENTS IN ENSURING LIQUIDITY AND STABILITY OF THE CURRENCY MARKET OF UKRAINE IN THE CONDITIONS OF MILITARY CONFLICT

In the conditions of military actions, liquidity of the currency market is of critical importance for the financial stability and security of the state, which stipulates significant relevance of the issue of instruments of liquidity provision. The research aims to identify the influence of the instruments of the National Bank of Ukraine (NBU) on the liquidity of the currency market of Ukraine within the context of long-term military conflict.The methods of regression analysis, correlation analysis, and analysis of variance were used in the study to determine the leading factors that influence the liquidity of the currency market in Ukraine in the conditions of military conflict.The study of the liquidity of the currency market through the prism of linear regression reveals the relation between the core economic indicators and the level of liquidity of the currency market during the military conflict. The model with a coefficient of determination 0,774 was found to effectively describe 77,4% of liquidity variability, underlining the significant influence of such factors as central bank policies and macroeconomic conditions. Significant coefficients for central bank interventions (1,7867), regulatory measures (59,8199), volume of international aid (-1,5684) and inflation (-99,9780) indicate their influence on the liquidity of the currency market in the conditions of military conflict. The influence of regulatory measures with a correlation of 0,59 is especially important.The article emphasises the necessity for minimising dependence on external financing and inflation control through monetary measures to ensure price stability. Further study perspectives involve consideration of the influence of digital currency of central banks on the liquidity of the currency market.

STATE REGULATION OF REINSURANCE ACTIVITIES IN UKRAINE DURING THE WAR

This paper examines the evolution of state regulation of reinsurance activities in Ukraine in the period 2022-2024, with a particular focus on the impact of the ongoing conflict with Russia. This paper examines the manner in which the regulatory framework has been adapted to the distinctive challenges posed by the war in order to stabilise the insurance market and ensure effective risk management. The objective of this study is to analyse the regulatory measures and their implications for the insurance and reinsurance sectors, with a particular focus on the changes implemented, their practical results and the broader implications for market stability. The primary objective of this paper is to undertake a comprehensive analysis and evaluation of the alterations in state-level regulation of reinsurance in Ukraine between the years 2022 and 2024. The objective is to identify the regulatory changes implemented to address the distinctive challenges posed by wartime conditions, evaluate their impact on the reinsurance industry, and discuss the broader economic implications. The study aims to provide a comprehensive understanding of the manner in which the regulatory framework has been adjusted in order to maintain industry stability and ensure effective risk management in an unstable environment. Methodology. This study employs a qualitative research methodology, utilising a combination of document analysis and expert interviews. The data was gathered from regulatory reports, policy documents, and statements issued by the National Bank of Ukraine and other pertinent authorities. The analysis is centred on a detailed examination of the key regulatory adjustments, the market responses to these changes, and the practical implications of these modifications. Results. The analysis revealed several significant changes in the reinsurance regulation in Ukraine during the reporting period: 1) strengthening of regulatory supervision; 2) revision of coverage requirements; 3) state and international financial support measures and co-operation with international reinsurers to stabilise the market and manage increased risks. The regulatory changes have had several practical implications for the reinsurance sector: increased financial stability through stronger solvency and capital requirements has improved the financial strength of insurers and reinsurers, helping them to manage the increased risks associated with the conflict. Value / Originality. This paper presents a comprehensive analysis of the regulatory adaptations in Ukraine's reinsurance sector during a period of significant political and economic upheaval. The paper offers valuable insights into the effective adjustment of state regulation in response to extraordinary circumstances, thereby contributing to the broader understanding of risk management in conflict-affected regions. The study is of particular relevance in the context of the prevailing geopolitical circumstances and the necessity to comprehend the manner in which extreme circumstances affect financial regulations. The study addresses a gap in the existing literature on crisis management in the financial sector, with a particular focus on the context of war. The originality of this study lies in its focus on the intersection of war and regulatory adaptation, a topic that has been largely overlooked in the existing literature. By analysing the regulatory responses and their outcomes, the paper makes a contribution to the development of strategies for effective crisis management in the financial and insurance sectors.

An in-depth analysis of financial metrics and their interrelations in shaping the performance of commercial banks in Cambodia

This study aims to systematically identify and analyze key financial metrics that influence the performance of commercial banks in Cambodia. Utilizing 2023 data from the National Bank of Cambodia across 59 banks, the research adopts an explanatory framework based on cross- sectional data analysis. The findings reveal that Loan Growth (LG) exhibits no statistical significance in relation to Return on Equity (ROE), suggesting that increases in lending do not necessarily enhance bank profitability in the Cambodian context. Conversely, Non-Performing Loans (NPL) demonstrate a marginally significant positive relationship with ROE, indicating that effective management of these loans can still yield profitability. Additionally, the Loan to Deposit Ratio (LDR) shows a significant negative impact on ROE, suggesting that higher liquidity risks associated with elevated LDR levels may hinder profitability. The study further confirms that Market Share (MS), Loan Loss Provision (LLP), Cost to Income Ratio (CIR), Effective Tax Rate (ETR), and Net Interest Margin (NIM) significantly influence ROE. These results underscore the importance of effective risk management, operational efficiency, and strategic financial planning in enhancing bank profitability. Recommendations for Cambodian commercial banks include improving risk management practices, focusing on loan portfolio quality, optimizing LDR, implementing cost efficiency measures, and enhancing tax management strategies.

Comparative institutional analysis of the banking systems of Russia and Belarus: a transactional approach

This study presents the results of a comparative institutional analysis of the banking systems of Russia and Belarus based on a transactional approach. These countries were chosen as the object of research for reasons of common factors of historical development, the degree of integration interaction between countries, as well as the availability of common approaches to financial regulation. It is shown that despite the similarity of the evolutionary development of the banking systems of Russia and Belarus, the modern credit markets of these countries differ in such parameters as the powers of the central bank, the degree of competition between banking and non-banking financial markets, the functional purpose and institutional structure of the second level of the national banking system.

Nexus between Gross Fixed Capital Formation, Household Loans and Savings in Bulgaria

The goal of this article is to analyze the impact of household savings and household loans on gross fixed capital formation in Bulgaria. The research is carried out on the basis of quarterly data for the 2010-2023 period. The sources of the data are the National Statistical Institute (NSI) and the Bulgarian National Bank (BNB). The algorithm of the empirical research includes: checking for stationarity by means of the extended Dickey-Fuller test; determining the optimal lag of the model; Johansen cointegration test; specification of vector error correction model (VECM). As a result of the research, it has been established that there is a long-term relationship between the variables gross fixed capital formation, household savings and household loans. At the same time, about 39.2% of the disequilibrium between the studied variables in a certain quarter is compensated in the next one.

Embodiment of Economic Democracy Aspects in National Banking Law

This research discusses the embodiment of aspects of economic democracy in Indonesian national banking law. Economic democracy is defined as a system in which the distribution of wealth and economic opportunity is done fairly and equitably. This research evaluates the extent to which the principles of economic democracy, such as fair access to banking services, financial inclusion, and consumer protection, are implemented in national banking regulations and policies. The method used in this research is qualitative analysis with a normative juridical approach, which involves the study of legal documents and related regulations. The results show that although there are some efforts to integrate the principles of economic democracy in national banking law, there are still gaps in its practical implementation. Recommendations are given to strengthen regulations and policies to be more aligned with the objectives of economic democracy, so that economic benefits can be felt by all levels of society.

Evaluating and Improving Relative Efficiency The Banking Sector in Iraq Using Data Envelopment Analysis of The Output-Oriented VRS Model With Application

The banking sector is one of the important sectors in Iraq, and the last stage witnessed the emergence of several private banks in the competition market, and in order to determine the efficiency of existing banks, the resources available to government and private banks were analyzed and compared with two international banks to determine their efficiency ratios for the surveyed banks using data envelopment analysis, the research problem was diagnosed in the lack of interest in measuring the efficiency of banks by exploiting the resources available to maximize profits, the aim of the research is to determine the efficiency of the banks studied according to the direction of outputs and to conduct continuous analysis of the results in order to come up with recommendations that contribute to improving the banking sector. The research focused on the direction of increasing outputs with constant inputs in order to maximize returns. The( Deap2.1) data analysis program was used, and the research adopted data for 2022 to measure efficiency. For 22 banks operating in Iraq (governmental and private) and two banks outside iraq, the variable volume returns (VRS) model was used, and the most prominent results achieved were the achievement of banks The following banks (Rasheed, industrial, TBI, Al-Ahli, Asia, National,trans-Iraq, Jordanian capital, Lloyds Banking Group London) achieved high efficiency100% as they used their resources optimally. The investment bank achieved 90.8%, which is a good percentage, with the ability to benefit from the expertise of industrial and national banks, Jordanian capital, and Lubd's Banking Group London to reach 100% efficiency in 2022.

CURRENT EXCHANGE RATES AND MANAGEMENT POLICIES IN VIETNAM

In the age of inflation, the monetary policy management of national central banks has been challenging in stabilizing the economy. The exchange rate is an economic variable that affects most of the aspects of the economy's activities, but the effect of the exchange rate on many activities is very different. In particular, the impact of exchange rates on trading activities is clear and quick. Therefore, the majority of countries use the exchange rate as an effective tool to adjust their import and export activities of goods and services. In Vietnam, although the State Bank of Vietnam (SBV) has managed the exchange rate relatively stable, in the coming time, the exchange rate may continue to be under pressure due to high inflation and political conflicts between countries; there are still no signs of ending… Potential risks affecting investment, production – business activities, and the exchange rate fluctuations in the foreign exchange market. Researching and making practical proposals will help the State Bank apply exchange rate regimes and appropriate exchange rate management mechanisms.

The relationship between bank lending and economic factors in the regions of Kazakhstan

Understanding the impact of economic factors on bank lending is crucial in Kazakhstan’s modern economy, characterized by volatile inflation and fluctuations in real wages. This paper aims to investigate the link between bank lending and economic factors such as inflation, real wages, and consumer expenditure in a regional context. Data from the Bureau of National Statistics and the National Bank, covering the period from 2012 to 2022, were used to uncover how economic factors influence bank lending. For the analysis, various economic indicators were integrated through normalization and averaging. Analysis reveals significant regional disparities in real wages and consumer expenditures, which impact the demand for bank credit. The results of the correlation matrix showed that both real wages (P-value < 0.001) and inflation (P-value < 0.001) significantly impact bank lending, with an R² value of 0.998, indicating that the model explains 99.8% of the variation in bank lending. The regression analysis highlights that regions with higher real wages, such as Astana, Almaty, and Atyrau, provide the most favorable conditions for banking sector growth, demonstrated by a strong relationship between wages and bank lending. In contrast, regions with lower wage levels, such as Turkestan and Zhambyl, show a significantly weaker connection (around 0.65), reflecting their lower attractiveness for banking investment and emphasizing the need for policies to address social inequality. The Durbin-Watson test confirmed no autocorrelation in residuals (DW = 1.89), although heteroscedasticity was detected, suggesting the need for further model adjustments. The study emphasizes the importance of developing economic policies that can balance regional development and improve financial stability. AcknowledgmentsThis research has been funded by the Science Committee of the Ministry of Science and Higher Education of the Republic of Kazakhstan (Grant “Development of mechanisms for reducing social inequality and improving the welfare of the population of Kazakhstan” AP19174744).

Central bank communication in unconventional times: Some evidence from a textual analysis of the National Bank of Poland communication during the COVID-crisis

The article analyses the communication of the National Bank of Poland (NBP) one year after the announcement of the crisis response package adopted after the outbreak of the COVID pandemic. It presents the perspective of a central bank that first entered unconventional monetary ground during the COVID-crisis. The analysis aims to answer the question of what message about monetary policy objectives may have been conveyed in communication with regard to possible interpretations of the response actions by economic agents. Misinterpretations of policy actions at the time, fuelled by the increased attention to inflation, could later contribute to higher inflation persistence. The article presents findings based on the innovative use of MAXQDA Pro 2022 solutions for textual analysis of central bank’s communication. It points to three inconsistencies in the NBP’s communication that could potentially lead to misinterpretation of the NBP’s policy actions in response to the crisis and thus affect the formation of expectations.

Macroeconomic Drivers of Inflation in Ethiopia: Evidence from ARDL Modelling

Purpose: This study identifies the macroeconomic determinants of inflation in Ethiopia from 2012 to 2023, a period marked by reforms and liberalization efforts. Despite these measures, inflation remains a critical challenge impacting Ethiopia's economic stability.Method: Utilizing the ARDL model, this study examines the relationship between inflation and various macroeconomic indicators. Data are drawn from sources such as the National Bank of Ethiopia (NBE), Ethiopian Economic Association (EEA), International Monetary Fund (IMF), and World Bank (WB). The Augmented Dickey-Fuller (ADF) and Phillips-Perron (PP) tests are employed to assess data stationarity.Findings: Results indicate that money supply growth, import-to-GDP ratio, budget deficit, and public expenditure have a significant positive effect on inflation in both the long and short term. Conversely, lending interest rates exhibit inflationary effects in the short term but are deflationary in the long term. Additionally, external debt-to-GDP ratio, official exchange rate, and real GDP growth rate demonstrate negative long-term impacts on inflation.Novelty: This research uniquely integrates key macroeconomic variables, analyzing their divergent impacts on inflation across short- and long-term frameworks in Ethiopia's context.Implications: The findings underscore the importance of balanced fiscal and monetary policies to curb inflation, offering critical insights for Ethiopian policymakers aiming to foster economic stability.