Non-bank Financial Institutions Research Articles

PROCESS OF UKRAINE'S FINANCIAL SECTOR INSTUTIONALIZATION AND ROLE OF CORPORATE SECURITIES MARKET

This article deals with the characteristics of the institutionalization process of the financial sector in Ukraine and the role of the corporate securities market in it. It is determined that the modern domestic financial sector is characterized by significant institutional imbalances, primarily due to the insufficient effectiveness of state policy in this area. For many years, banks have been the key players in the domestic financial sector, which significantly reduced the level of financial inclusion. The development of non-banking financial institutions has been fragmentary, significantly undermining public trust in the financial sector. In particular, this concerns the activities of credit unions in Ukraine, where the market volumes of private pension provision have been minimal for a long time. Some existing institutional imbalances were overcome through the rapid digitalization of certain segments of the financial market, but the overall level of financial inclusion remains low. The process of institutionalization of the domestic financial market occurred against the background of the weakness of the corporate securities market. The article notes that this situation was a consequence of the lack of interest from joint-stock companies in market methods of capital attraction. Along with this, domestic financial institutions are not interested in investing in corporate securities. Thus, the reluctance of public corporations to place their securities on the market coincides with a peculiar investment strategy of financial institutions. As a result, the volumes of the primary corporate securities market in Ukraine are minimal (especially in the stock market), and government securities dominate the secondary market for a long time. This situation poses a series of threats to Ukraine's economic development and requires appropriate actions from the state aimed at the activation of the corporate securities market. It can now be stated that domestic public corporations are non-competitive in the global financial space, which destructively affects their market positions.

INSIGHTS INTO CUSTOMER PERCEPTIONS: COMMERCIAL VEHICLE LOAN OFFERINGS IN A SELECTED NON-BANKING FINANCIAL INSTITUTION

Commercial vehicle financing is crucial for supporting the transportation sector, a cornerstone of any economy. This study aims to explore patterns, challenges, and opportunities in commercial vehicle financing at a Non-banking financial institution, offering insights for stakeholders and contributing to existing knowledge frameworks. Using a descriptive research design, primary data will be gathered through surveys, interviews, and focus groups involving stakeholders like customers, employees, and management. Secondary data from market studies and industry publications will supplement the analysis. Data analysis will employ both quantitative and qualitative techniques, identifying opportunities for improvement and positive changes in services. This research aims to inform decision-making and drive positive change in commercial vehicle financing operations, benefiting industry players, policymakers, and future research endeavours.

Creation and Legal Status of a Specially Authorized Body of Non-Banking Financial Services

The article is devoted to the peculiarities of state regulation in the market of non-banking financial services. At the same time, attention was paid to the creation of a specially authorized state body in the form of the National Commission for Control of the Market of Non-Banking Financial Services. The purpose of the article is to reveal the legal status, the order of formation, and clarify the main principles of the National Commission's activity. Achieving the outlined goal became possible thanks to the use of a complex of methods of scientific knowledge, in particular, the dialectical method (for comprehensive knowledge of the nature of the National Commission for Control over the Market of Non-Banking Financial Services), the formal-legal method (for establishing the content of legal norms), the formal-logical method (for identification of shortcomings in national legal regulation), comparative legal method (for studying the experience of other countries and determining the prospects for implementing their principles of activity in the national legal field). It has been studied that the special status of the commission is that it ensures the stability of the entire non-banking financial system of Ukraine, establishing the requirements that such institutions must meet, namely requirements for: liquidity, solvency, capital, asset quality, risk level of operations, profitability. The work examines the relationship between the commission and the National Bank of Ukraine, their cooperation in the market, which consists in the development of regulatory and legal acts and their approval. The need for the National Bank of Ukraine to delegate its powers to the National Commission for Control of Non-Banking Financial Services in relation to: registration of market participants, licensing of non-bank financial institutions, determining the procedure for issuing and canceling a license, approving the terms of operation of such institutions. In view of this, a new model of state regulation on the market of non-banking financial services was proposed in the form of concentration of all control functions on the market in a single operationally independent regulator - the National Commission for Control of Non-Banking Financial Services, which is in close cooperation with the National Bank of Ukraine and by the National Securities and Stock Market Commission. Also, the article emphasizes that regulation by the National Commission for Control of the Market of Non-Banking Financial Services should be complemented by a system of self-regulating participants in the market, which are an additional tool to state regulation.

Sharia Financing Marketing Strategy in The Framework Of Spin-Off Preparations at Bank “P”

This research is expected to be able to see and analyze the types of strategies currently being implemented by the Sharia Business Unit of Bank "P" in preparation for the spin-off in accordance with applicable regulations. This research used a mixed methods approach, complemented by descriptive analysis. The method chosen is a SWOT analysis to determine internal and external factors and their importance by determining the IE Matrix test. By examining the position in the IE and SWOT matrix quadrants, the following are identified: (1) the company's position and its ability to compete, (2) strength, (3) weakness, (4) opportunity, and (5) threats. As a result, several alternative strategies were obtained that could be implemented by UUS (Sharia business unit) Bank "P", namely (1) establishing cooperation and partnerships with other Sharia financial institutions or non-bank financial institutions; (2) creating a diversified sharia product portfolio; (3) expand its customer base by introducing products and services; (4) improving the quality of human resources; (5) Investment in technology infrastructure.

Financial sector development and industrialization: lessons and prospects for Ethiopia

ABSTRACT A functional and efficient financial sector is essential for the industrial advancement of a nation. In the context of Ethiopia’s rapidly growing economy, this study examines the limitations imposed by its underdeveloped financial sector on the country’s economic advancement and explores viable policy interventions. Characterized by state-owned bank dominance, a scarcity of non-bank financial institutions, and deficient infrastructure, Ethiopia’s financial system perpetuates widespread financial exclusion. This exclusion hinders industrial transformation, stifles local business growth, and narrows financing avenues for foreign entities. Insights from China’s shift toward market-oriented financial reforms and Kenya’s fintech innovations suggest a path for Ethiopia involving clear, gradual reforms. Strategic steps could include diversifying financial institutions, improving financial infrastructure, advancing mobile payment solutions, and adopting more versatile financing methods to address the financial challenges of industrialization.

Consumer lending vs ludomania: From resilience to social responsibility in the case of Ukraine

The main idea of the article lies in seeking a balance between the interests of the state, citizens - microcredit borrowers, non-banking financial institutions, and gambling entities (this is exemplified through relationships where low-income citizens use consumer credits for gambling). Unwise decisions by any of these participants regarding consumer credits and their use for gambling pose risks to both financial and social security in society. The issue of rationalizing the purpose of consumer credits, particularly in the context of military factors, when both the state and citizens are highly vulnerable, gains particular significance. In pursuit of the aim to identify an effective strategy to counter their (credits) use in citizen-risk operations, such as gambling, the article provides reasoned proposals for enhancing legal regulation of these relationships in Ukraine. Furthermore, the conceptual component of the article is reinforced by emphasizing the significant role of the concept of socially responsible business, which serves as a guarantee for achieving a positive social impact and minimizing predatory treatment of citizens in the microcredit sector. The research offers measures to prevent the misuse of microcredits and underscores the importance of achieving a balance between state and private interests in this field.

Fintech mergers and acquisitions

Fintech firms have emerged as popular targets for mergers and acquisitions (M&A) in response to the remarkable growth of the fintech industry. However, different acquirers assess the benefits of these deals differently, and the actual benefits realized may diverge from the expected synergies. This study scrutinizes the value of fintech M&As for three types of acquirers: U.S. public banks, nonbank financial institutions, and tech companies. The short-term market reaction to fintech M&As is negative for acquiring banks and insignificant for nonbank financial institutions and tech companies, which is not explained by deal-level or acquirer-level characteristics. Moreover, using a matched sample, we find limited evidence suggesting that fintech M&As contribute to improvements in acquirers’ subsequent operating performance, innovation, or business diversification strategy. Overall, the evidence suggests that fintech acquirers, particularly acquiring banks, may potentially overestimate the benefits of such deals. Our study calls for improved guidelines to ensure more informed decision-making in fintech M&As.

Article: The Systemic Importance of Asset Managers: A Case Study for the Future of SIFI Regulation

The nexus between financial stability and the asset management industry remains understudied. I question whether asset managers and/or investment funds could be systemically important, and if so, how financial regulation in the EU and US should cope with this. From a review of the available economic literature and policy standpoints, it emerges that asset managers and the funds that they manage can create systemic risk through fire sales. While in some cases nonbanks can be designated as systemically important under EU and US law, asset managers and investment funds do not fit well in this framework. Consequently, the current rules, concerning both designation and subsequent regulation, fall short. Instead, a simple designation rule could directly address the way in which asset managers can cause or amplify systemic risk. Regulation and supervision should equally address this fire sale risk. I propose a market-based prudential measure, complemented by centralised supervision, that does so. The case of systemically important asset managers shows that current SIFI regulation does not sufficiently account for the systemic risks that can and will be caused by nonbank financial institutions. I therefore advocate a rethink, such that it has a wider institutional scope but more accurately addresses sectoral differences. Financial stability, systemic risk, systemically important financial institutions, nonbank financial institutions, asset management, investment funds, SIFI regulation, fire sales, EU law, US law.

Improving Customer Data Quality on Pension Bank Loans in Palembang-South Sumatra

The bank has transferred the retirement loan application service to the cooperative as one of its subsidiaries. The phenomenon that often occurs is misinformation from cooperative officers when explaining the number of credit applications that should be made. The purpose of this research is to find the right pattern and form for applying the latest data technology so that it can provide the right information in the credit application process. Measurement and analysis of research data are qualitative, with a descriptive explanation level. Viewed by place and classified as field research. Types and research strategies, including Case Studies. Retrieval, collection, and analysis techniques were carried out repeatedly and simultaneously until the data was saturated and credible. The research yields findings about internal customer data connection patterns that are accurate and up-to-date. The form of credit data management by providing recommendations and internal references to customer performance, so that process and procedure connectivity is guaranteed between Bank Financial Institutions (LKB) and Non-Bank Financial Institutions (LKBB). The conclusion from the research is that the track records or data records of retired customers at the bank must be properly and up-to-date so that when applying for the same credit at a subsidiary of the institution, there is no misunderstanding of information and guaranteed correct and correct data.

Dinamika Lembaga Dan Aset Lembaga Perbankan Syariah Di Indonesia (Total Lembaga Dan Aset 2019 – Mei 2023)

This research utilizes a literature review method to investigate the dynamics of Islamic banking institutions and their assets in Indonesia from 2019 to May 2023. The 2022 Islamic Financial Development Report of Indonesia reveals a significant growth of 15.87% in the assets of the Islamic financial industry. The Financial Services Authority (OJK) emphasizes the resilience of the Islamic economic and financial sector, including Islamic banking, in facing the challenges of the COVID-19 pandemic. In 2022, the assets of the Islamic financial industry reached IDR 2,375.84 trillion, with growth primarily occurring in the Islamic capital market (15.51%) and Islamic Non-Bank Financial Institutions (20.88%). Indonesia remains a key player in the Islamic Finance Development Indicator 2022. This research describes the development of Islamic banking institutions from 2019 to May 2023, highlighting fluctuations in the number of branches and Islamic banks. Consolidation, Islamic financial literacy, and digital technology are key factors shaping the dynamics of this sector. Despite a decrease in the number of Islamic banks, total assets increased from IDR 624.564 trillion in December 2019 to IDR 785.646 trillion in May 2023. These factors support the growth and resilience of the Islamic banking sector in Indonesia.

Financial structure: A new aspect of analysis and new results

There is growing evidence that the financial structure depends on the level of economic development of the country. In developed countries, firstly, there is a convergence of financial structures and, secondly, an increase in the share of non-bank financial intermediation sectors in national financial systems. Therefore, we propose to proceed to the analysis of the three-tier structure of the financial sector (banks — non-banking financial institutions — financial markets), for which we have developed new indicators that assess the relationship between a non-bank financial intermediation sector and financial markets. They showed that in the last 7—8 years in Russia there has also been an outstripping growth of this sector. Our regression studies, firstly, have confirmed the conclusion that in Russia the financial structure (in the traditional sense) slows down economic growth and, secondly, allowed us to assume (based on the results of a crosscountry analysis) that the current structure of the Russian financial sector (with a predominant share of banks) contributes to an increase in the volatility of economic growth. The behavior of the new financial structure ratios and regression analysis based on traditional financial structure ratios indicate the need to adjust government policy in the financial sector in order to ensure faster growth of financial markets.

Keabsahan Akta Dibawah Tangan pada Kredit Mobil dalam Perjanjian Fidusia

In the development of technology and information, developments in means of transportation cannot be separated, which as time changes, always offers the newest forms of technology, even in terms of vehicle design. In its current development, cars are a means of transportation that can be said to be owned by all groups. The need to have this means of transportation makes it possible for consumers who need a car as a means of transportation but it is not always available and accessible to the general public. Non-bank financial institutions exist as an effort to facilitate the community in meeting their needs. Credit is an alternative for the community as an alternative effort to meet existing needs. Fiduciary guarantees are regulated in Law Number 42 of 1999 in order to maintain security in the credit process and to become a credit object registered with the Fiduciary. In legal research, it is explained that the rights and obligations on the part of the consumer are to pay the consumer with the nominal value of the party making the sale and then take back the car as an object of consumer financing guarantee if in the future there is a default. If a default occurs, the buyer is obliged to provide compensation, namely canceling the agreement under compelling circumstances

ANALISIS PERAN AGEN DALAM MENINGKATKAN JUMLAH NASABAH DAN PANGSA PASAR PADA PT. PEGADAIAN (Persero) UPC TONGAS KABUPATEN PROBOLINGGO

PT. Pegadaian (Persero) is a non-bank financial institution that has the legal authority to finance loans on a pawn basis. The aim of this research is to analyze the role of agents in increasing the number of customers and expanding market share at PT. Pegadian (Persero) UPC Tongas, Probolinggo Regency. The research method used is qualitative with a descriptive approach of case studies at pawnshops. Data collection techniques used include interviews, observation, secondary data and documentation. Findings show that pawnshops are business partners of the company, this is one of Pegadian's marketing strategies. Pegadian agents play an important role in increasing the customer base by expanding market reach and increasing sales volume through distribution channels. Research also shows that pawnshop agents' performance improves when their own income increases. Therefore, Pegadian must provide ongoing training to keep agents motivated and maintain the quality of their sales channels. Therefore, the role of agents in the financial industry has a significant impact on whether companies can achieve higher profits through effective distribution channels. Keywords: Agent Role, Number of Customers, Market Share, Pawnshop

Which factors of corporate governance influence the financial sustainability of non-bank financial institutions in Bangladesh? Panel data analysis by the PCSE estimator

In Bangladesh's financial industry, non-bank financial institutions (NBFIs) are essential players in addition to banks. To guarantee the sustainability of this industry, proper corporate governance is required. Corporate governance consists of various factors. The study provides new evidence on which factors of corporate governance influence the financial sustainability of non-bank financial institutions in Bangladesh. The researcher compiled the panel data for the period 2011-2022 from financial disclosures of sampled non-bank organizations. The researcher adopted key panel data techniques. Specifically, the panel corrected standard error (PCSE) estimator was employed to determine the factors influencing the corporate governance of non-bank financial institutions (NBFIs). The researcher assessed the data using the panel least squares, Hausman test, Wooldridge test, as well as the Breusch-Pagan/Cook-Weisberg test. The findings revealed that board independence, board activity intensity, audit committee size, and audit committee activity intensity play a significant role in reshaping corporate governance and achieving the financial sustainability of non-bank financial organizations. On the other hand, board size, board composition, board independence, audit committee independence, and gender variety are not found to be significant factors. Since there isn't much research in this area, the study seems to be highly valuable from an academic standpoint. The study's findings will assist the regulatory bodies in implementing suitable corporate governance in Bangladesh's non-banking financial sector.

The Influence Of The Environment, Business Capital And Creativity Of Marketing Strategies In Increasing The Competitiveness Of MSMES In Bengkayang City

One of the factors that encourages the development of MSMEs in Indonesia is support from the government. The government provides MSME actors with as much space as possible by following the rules contained in government regulations. The government's enormous attention to MSMEs is the right strategic step, in order to encourage the growth of our nation's economic development. The business environment can act as a creator of opportunities or as a threat. These opportunities or threats depend on the extent to which the power possessed can take advantage of existing opportunities. Business environmental factors consist of political, economic, social, cultural, educational, technological, demographic and legal. Having knowledge about the environment can encourage marketing creativity as an expansion of actions to market products. Creativity is centered on something new and meaningful from several outputs, towards general implementation in the field of marketing, and creativity requires the development of newer and more radical alternatives because it is a business solution effort faced by MSMEs every day. The innovation of an MSME is of course to adapt in a dynamic environment, MSMEs are required to be able to create new assessments, new ideas and offer innovative products. To run an MSME, capital is one of the important supporting factors that is absolutely necessary to run a business. Sources of capital can be obtained from own capital, government assistance, financial institutions, both banks and non-bank financial institutions. Every MSME that competes in an industrial environment has the desire to be superior to its competitors. MSMEs MSMEs that have competence in the fields of marketing, products, innovation can be used as a source to achieve competitive advantage. Competitive advantage can be interpreted as a benefit strategy from MSMEs collaborating to create competitive advantages, so that they can dominate in new markets and markets. The aim of this research is to find out whether there is an environmental influence on the competitiveness of MSMEs, whether capital factors can influence the competitiveness of MSMEs, whether marketing strategy creativity can influence the competitiveness of MSMEs. The first stage in this research is identifying problems, related to environmental warfare, business capital and MSME marketing creativity. The aim of the research is to identify aspects that are closely related to problems in the environment, marketing capital and creativity, literature study, literature review both journals and texts book, data processing, feasibility study regarding aspects of the role of the environment, capital and marketing creativity, analysis, extent of data processing results
 research, make conclusions, based on research results and make suggestions. The output of this research is articles published in accredited national journals. This type of research is descriptive quantitative, validity and reliability tests to measure concepts, classical assumption tests to test data so that it meets the Best Linear Unbiased Estimator (BLUE) criteria so that it can produce a valid estimator.
 KEYWORDS : Environment, Business Capital, Creativity, Marketing Strategy, MSMEs
 

Factors Affecting The Readiness Of Sharia Paylater Implementation At Universitas Negeri Jakarta

One of the results of technological developments that are being discussed in various parts of the world lately is Financial Technology (Fintech). As an innovation in the financial sector in non-bank financial institutions that utilize information technology as a tool to reach consumers. Make it easier for humans in the transaction process between buyers and sellers and can anticipate fraud in the transaction process. This study aims to examine the factors that affect the readiness of the implementation of sharia Paylater within the scope of Jakarta State University. These factors are; (1) optimism (2) innovasian; (3) discomfort; (4) insecurity; (5) perceived usefulness; (6) perceived ease of use; and (7) organizational culture. The method used in this study is a quantitative approach, using scale instrument tools. This method is used to determine consumer readiness to use the Paylater payment system using the Technology Readiness Acceptance Model (TRAM). The population of this study was all employees of Jakarta State University as many as 1714 respondents, consisting of civil servants and non-civil servants. After sampling was carried out, 95 respondents were obtained. Data analysis techniques using smartPLS software, are carried out to make measurements, both measurement models and structural models. The results of structural model analysis, as an analysis to determine the relationship between constructs hypothesized by researchers based on established criteria, show that of the 11 hypotheses proposed, there are 4 (four) hypotheses that are not significant. The four insignificant hypothetical relationships are; (1) INS - PU; (2) INS - PEU; (3) PEU - IU; and OC - IU. The four relationship models are issued in the model to describe the factors that affect the readiness of sharia paylater implementation at Jakarta State University.

Enterprise Management and Risk Assessment Analysis Practice

Finance is the core competitiveness of the country. Since the reform and opening up, China's financial industry has developed rapidly and made historic achievements, but there are still many contradictions and problems that make it difficult to meet the requirements of high-quality economic development. First, the debt problem: China's enterprises, local governments and household sectors are all facing considerable debt pressure. Some enterprises and local governments have hidden debts, and the debt of the household sector is also increasing. This poses a risk to the stability of the financial system.Second, financial institution risk: Some financial institutions have risks, including credit risk and liquidity risk. Some non-bank financial institutions have relatively low capital adequacy ratios and are potentially at risk of default.Third, financial chaos: some financial chaos problems still exist, such as illegal fund-raising, online financial fraud and so on. These issues challenge the effectiveness of financial regulation and public trust in the financial system.Fourth, structural problems in the financial system: there are some structural problems in China's financial system, such as insufficient interaction between the banking sector and the capital market, and relatively low efficiency of financial resource allocation. These problems constrain the development of the financial system and sustainable economic growth.

Research Trend on Social Banking

The implementation of corporate social responsibility is not only for industrial companies that produce negative impacts on the environment and society, but also other sectors such as: services, insurance, communications, bank and non-bank financial institutions. Banks and other financial service providers play an important role as they are not only recipients but also providers of socially responsible investments. Banks can benefit by applying various basic ideas related to CSR to their policies related to human resources and community involvement. This study aims to determine the development map and trends of Social Banking published by reputable journals in the field of Economics and finance. The data analyzed were more than 1744 publications of Scopus indexed research publications. The export data was then processed and analyzed using the R Biblioshiny application program to determine the bibliometric map of the development of the role of Social Banking. The results showed that the number of publications on the development of the role of economic and financial research continues to increase.

ФУНКЦІОНУВАННЯ НЕБАНКІВСЬКИХ ФІНАНСОВИХ УСТАНОВ В УМОВАХ СУЧАСНИХ ВИКЛИКІВ

The stability and development of the country's financial sector is determined by the presence of a well-developed network of non-bank financial institutions. The latter include financial and insurance companies. The purpose of the article is to assess the activities of non-bank financial institutions, identify the advantages and disadvantages of their activities and develop proposals for improving their performance in the context of current challenges. The article analyses the current challenges facing the financial intermediary market, which require an immediate response. It presents the dynamics of the financial sector in Ukraine and analyses its changes since the beginning of the Russian aggression. It is found that the war has created additional risks for non-bank financial institutions, such as the risk of client insolvency, the risk of changes in legislation and regulation, the risk of falling asset prices, rising inflation and exchange rate depreciation. This may lead to increased losses and reduced financial stability of non-bank financial institutions, negatively affecting their liquidity and solvency. Proposals are made to improve the activities of non-bank financial institutions in the face of current challenges, in particular: the market of non-bank financial institutions should adhere to high standards of corporate governance and transparency, which will have a positive impact on the level of confidence in the market and give it an additional impetus for development; adhere to the Strategy for the Development of the Financial Sector of Ukraine until 2025, as the current military-political situation has made adjustments that need to be taken into account; the system of regulation and supervision of the non-bank sector should be improved. In market segments where there are no EU standards, national standards based on international experience will be introduced. It is noted that non-bank financial institutions should continue to actively develop their activities, improve and develop new products and services of interest to consumers. Non-bank financial institutions play a particularly important role for large companies which, due to the nature of their activities, have business contacts with many counterparties with which it is technically impossible to settle without the assistance of financial intermediaries.

Фактори впливу на структуру капіталу нефінансових корпорацій України

The purpose of this study is to determine the factors that explain the capital structure of Ukrainian non-financial corporations. The study was carried out on a sample of 8525 Ukrainian large and medium-sized enterprises on the time horizon of 2014-2019, covering one economic cycle. Banks and non-bank financial institutions are excluded from the sample of enterprises, since the structure of their assets differs from that of commercial companies. To determine the impact of fundamental factors, the capital structure of companies is represented separately by three indicators: i) the level of current debt, ii) the level of long-term debt, and iii) the level of debt in general in the structure of liabilities of enterprises. The list of indicators that explain the capital structure of Ukrainian companies includes fundamental indicators – profitability, company size, asset structure, current liquidity, growth; and macroeconomic variables: GDP growth and consumer price index. The results of the study confirm that the conception of sequential actions best explains the principle by which Ukrainian companies form the structure of liabilities. According to the results of the modeling, the company’s factors demonstrate statistical significance, but do not explain the variation in the level of debt in terms of types of economic activity. Only the factors of profitability, asset structure and type of economic activity are statistically significant for all types of models. The sign of the influence of factors that determine the capital structure of Ukrainian companies corresponds to the results of studies of both developed countries and transition economies. Also, the impact of factors on the level of indebtedness of enterprises differs significantly depending on the maturity of obligations. This study can be further developed by updating the calculations and data that include the period of recent crises. This will allow us to check whether companies have changed their approaches to choosing a capital structure during the wartime.