Banking Practices Research Articles

Шляхи залучення фінансових ресурсів державними банками для відбудови економіки України

Introduction. The analysis of the availability and quality of financial resources involves identifying sources of funding, established practices of state-owned banks, international programs and funds, criteria for ensuring the quality and sustainability of reconstruction, urgent needs for funding and its availability, ensuring the participation of economic actors in the planning and monitoring of reconstruction programs, accountability mechanisms and ensuring economic, social and environmental sustainability. Problem Statement. The need to expand the sources of term resources on local and international markets, and to distribute them through a system of financial partnerships between state-owned banks and authorized financial organizations to support small and medium-sized businesses, requires coordinated actions among all stakeholders. Although households' long-term funds account for only a small share of the overall financing structure, they are becoming increasingly important in the context of globalization, especially in view of economic recovery and political stability. The purpose is to examine the volume, dynamics and structure of sources of funds raised by state-owned banks in the local market for the purpose of rebuilding Ukraine's economy. Methods. The study used a systematic approach, the principles of systematization of statistical and analytical data, graphical analysis, scientific synthesis, induction and deduction. Results. The article analyzes the volumes, dynamics and structure of attracting credit resources by state-owned banks in partnership with authorized financial organizations, in particular through the loan programs of the Entrepreneurship Development Fund (EDF) and the NBU's refinancing programs for commercial banks. It was found that the amount of resources attracted from the EDF is insignificant compared to the loan portfolios of state-owned banks. To access the EDF loans, state-owned banks invest in government debt instruments (government bonds), which is inefficient in terms of supporting economic recovery, as high interest rates on such instruments cause liquidity to flow into government debt obligations, which puts pressure on the state budget and additional default risks for issuers of such securities. Special attention in the study is paid to the analysis of the dynamics of customers' term deposits by banking groups, including state-owned and private banks, as well as banks with foreign capital. The dynamics of attracting funds from individuals and legal entities of state-owned banks in comparison with large private banks and banks with foreign capital is presented. This made it possible to assess how successfully banks maintain their liquidity and retain customer confidence. Conclusions. In times of war, state-owned banks play a key role in stabilizing the financial system. Business support programs, social payments, and government guarantees have made these banks important to customers, which explains the significant growth in deposit portfolios in 2023-2024. The volume of bank refinancing (collateral, terms, purpose) indicates a change in the NBU's strategy aimed at reducing banks' dependence on the central bank and moving to more market-based liquidity mechanisms. The gradual integration of Ukraine into the EU opens up prospects for state-owned banks to access large-scale and cheap financing under targeted programs, so it is advisable to orient the banks' resource policy towards the relevant mechanisms. In times of war and global uncertainty, state and international guarantees are an important tool for attracting additional financial resources. At the same time, this tool is used to a limited extent. Among the state-owned banks, only Ukreximbank has received direct guarantees from the Ukrainian government to secure creditors' claims. It is necessary to consider the possibility of attracting guarantees from international organizations as a less burdensome and more effective tool for expanding and reducing the cost of funding.

Perception of Shariah Scholars toward Islamic Banking in Pakistan

Purpose Islamic finance growth depends on factors that are crucial for fostering positive perceptions and increasing acceptance, particularly in Muslim countries. This study aims to investigate the influence of awareness, knowledge, religion and the advantages on perceptions of Shariah scholars toward Islamic banks in Pakistan and the mediating role of attitude. Design/methodology/approach The study collected data through a questionnaire from 200 Shariah scholars in Pakistan who have completed or are currently enrolled in Islamic banking and finance courses. It employed exploratory and confirmatory factor analyses using SPSS and AMOS software to analyze the data to evaluate measurement and structural models, ensuring the validity and reliability of the constructs and testing hypotheses to examine the relationships among factors and perception. Findings The study identified a significant influence of knowledge and attitude on perception, thus supporting H3 and H9. H2, H6 and H8 indicate an insignificant impact of awareness, religious motivation and advantage on perception. This highlights the need for Islamic banks to bridge academic and industry gaps, ensuring that their promotional efforts emphasize monitoring by Sharia committees. The research revealed significant impacts of factors on attitude, confirming H1, H3, H5 and H7. Importantly, attitude was found to play a pivotal role as a mediator between factors and Shariah scholars’ perceptions of Islamic banking in Pakistan. Research limitations/implications By investigating the perspectives of Shariah scholars, this research seeks to provide insights into enhancing the understanding and development of Islamic banking practices within the context of Islamic principles and global financial landscapes. Originality/value This research contributes to the field by uniquely focusing on Shariah scholars’ perceptions of Islamic banking, addressing a significant gap in literature because little research has been conducted to address these issues from the Shariah scholars’ perspectives.

The effect of green banking practices to bank profitability

The effect of green banking practices to bank profitability

Development of a Green Banking and Green Financing Practice Model for Enhancing Sustainability Development Goals (SDGS)

Objective: This study is to investigate a green banking model based on green banking practices, green financing, and green environment to enhance sustainability development goals (SDGs). Theoretical Framework: The research focuses on developing green banking and financing practices to improve environmental performance in the Indonesian banking sector. Green Banking emphasizes sustainability in banking operations and products, while Green Financing promotes funding environmentally friendly projects. The study also draws on Stakeholder Theory, highlighting that banks are accountable to a wide range of stakeholders. Method: The research stages include the development of instruments, questionnaire distribution, data collection, and data processing using a sample of 54 respondents, selected using convenience sampling. Data testing and processing were carried out using SmartPLS software. Results and Discussion: The analysis of banking employees and practitioners revealed that Banks' Customer-Related Practices (BCRP), Employee-Related Practices (BERP), and Operation-Related Practices (BORP) positively impact Green Environment Performance (GEP), whereas Banks' Policy-Related Practices (BPRP) do not. Additionally, while BCRP, BERP, and BORP showed no significant influence on Green Financing (GF), BPRP demonstrated a notable positive effect on Green Financing (GF). This result also show that Studies on Bank’s customer behavior change towards sustainability and its influence on the SDGs. Research Implications: Banks can implement specific green practices to improve their sustainability development goals (SDGs). The study reinforces Sustainability Theory by highlighting the importance of balancing environmental, social, and economic concerns in banking operations, confirming the need for a "Triple Bottom Line" approach in business models. Originality/Value: The originality of the research is demonstrated through its Studies on Bank’s customer behavior change towards sustainability and its influence on the SDGs by integrating multiple theoretical perspectives.

The Determinants of Bank’s Liquidity: Comparative Analysis From Global Islamic Banks and Conventional Banks

This study investigates the determinants of bank liquidity in both Islamic and Conventional banks across 15 countries, focusing on key variables such as profitability, capital adequacy, bank size, and credit risk. Utilizing data from 107 Islamic banks and 506 Conventional banks spanning from 2013 to 2022, the analysis reveals significant differences in liquidity management between the two banking systems. The Random Effect Model (REM) was employed based on the Hausman test results to ensure robustness. The findings indicate that profitability negatively impacts liquidity in Islamic banks, likely due to investments in less liquid, Sharia-compliant assets, while it positively influences liquidity in Conventional banks, where profits are often reinvested into liquid assets. Capital adequacy emerges as a crucial determinant of liquidity in both bank types, highlighting the importance of maintaining strong capital buffers. The study also finds that credit risk significantly reduces liquidity in Conventional banks, whereas it has a lesser impact on Islamic banks. These insights contribute to a deeper understanding of liquidity management practices in Islamic and Conventional banks, offering valuable implications for bank managers, policymakers, and regulators.

The Impact of Regulatory and Technological Advancements on the Indian Banking Sector: A Comparative Analysis of Leading Banks

Lending or investing in securities, for the purpose of lending or investment, and which is a scheduled bank. "Over the last decade, the Indian banking sector has witnessed several positive developments and notable improvements in regulation. The policymakers, including the Reserve Bank of India Ministry of Finance, and other relevant government and financial sector regulatory entities, have played a crucial role in these advancements. One of the significant achievements in the Indian banking sector is the improvement in key metrics such as growth, profitability, and the management of non-performing assets. The sector has witnessed steady growth, with banks expanding their operations and increasing their market presence. Profitability has also improved, with many banks reporting robust financial performance. Efforts have been made to address the issue of which are loans or assets that have become non-performing or in default. and the government have implemented various measures to enhance asset quality and reduce These include the introduction of mechanisms like asset quality reviews, prompt corrective actions, and the Insolvency and Bankruptcy Code to facilitate the resolution of stressed assets. Moreover, a few banks in India have achieved remarkable success in terms of innovation, growth, and value creation. These banks have demonstrated a strong commitment to customer-centric services, technological advancements, and the adoption of innovative banking practices Overall, the study's findings provide evidence that disinvestment and associated reforms can positively impact the performance and government control may not necessarily need to cease entirely to achieve this improvement. It appears that the statement is discussing the historical context of the Indian banking sector until. During this period, banks in India operated in a protected environment characterized by government control and regulatory restrictions. Administered interest rates, high reserve requirements, and directed credit were prevalent measures implemented by the government. These initiatives have helped them enhance their competitiveness and contribute to the overall growth of the sector. In conclusion, the Indian banking sector has experienced positive transformations over the last decade. The efforts of policymakers and regulatory entities have played a crucial role in improving regulation and promoting growth. The sector now compares favorably with banking sectors in the region in terms of metrics such as growth, profitability. Additionally, certain banks have emerged as leaders in innovation, growth, and value creation, setting a benchmark for others in the industry wider mandate to serve as the principal banking institution in the country. They have introduced digital banking solutions, expanded their product offerings, and implemented efficient risk management systems. Utility services refer to a range of non-core services provided by banks, such as facilitating utility bill payments, offering insurance products, selling mutual funds, providing account services, and other similar activities. These services are aimed at enhancing customer convenience and meeting their diverse financial needs. The history of banking in India dates back to the early when three Presidencies’ These banks were granted the power to issue banknotes. Taken as Alternative parameters for AXIS bank, HDFC bank, ICICI bank, KMB bank, FBL bank, IBL bank, RBL bank, DCB bank, SIBL bank” Evaluation parameter taken as PB Banks, Net profit margin %, Return on long-term fund %, Return on net worth %, Interest income to total funds %, Interest expended to total funds %, Operating expenses to total funds %. the first ranking training is obtained with the lowest quality of compensation.

Evaluation of Quality Online Banking Services Using WASPAS Method

The rapid expansion of the Internet and advances in digital technology have revolutionized traditional banking methods, leading to the emergence of online banking. Online banking enables customers to conduct financial transactions anywhere, anytime, with unprecedented convenience and accessibility. This paper provides a comprehensive analysis of online banking, examining its benefits, challenges and impact on both banks and consumers. Key aspects such as security concerns, customer satisfaction, cost effectiveness and complexity in implementing online banking systems are discussed. Also, how online banking is reshaping the banking landscape, promoting greater competition, financial inclusion and digital transformation in the global economy. The advent of the Internet and digital technologies has fundamentally changed the way financial institutions operate, paving the way for online banking. Online banking, also referred to as internet or e-banking, allows customers to access a wide range of financial services through digital platforms. These services include checking account balances, transferring funds, paying bills and managing investments all from the convenience of a personal device. As customers increasingly demand fast, convenient and secure banking services, financial institutions have responded by embracing digital transformation. The shift to online banking has brought significant benefits such as reduced operational costs, improved customer experience and increased efficiency in financial services. However, along with these advantages, banks also face challenges related to cyber security, customer trust and the need for continuous technological upgrades to meet evolving consumer needs. The importance of research related to online banking lies in its profound impact on the global financial system and its growing relevance in the digital age. Understanding online banking is important for financial institutions, regulators and customers as it changes traditional banking practices and introduces new opportunities and challenges. Technological Advances and Innovations: Online banking is at the forefront of financial technology (FinTech), creating innovations in service delivery. Exploring this area allows for a deeper understanding of how technological advances such as mobile banking, artificial intelligence (AI) and block chain are improving efficiency, customer experience and the competitive landscape of banking institutions. Customer Behavior and Satisfaction: As more consumers shift to digital platforms, research on online banking provides insights into changing customer expectations and behavior. It highlights key factors influencing customer satisfaction, including usability, convenience and trust, helping banks refine their services to meet growing demands for seamless, personalized experiences. Cost Efficiency and Operational Impact: The financial sector has experienced significant cost reductions and operational improvements through the adoption of online banking. Understanding how banks can use online platforms to optimize resource allocation, reduce transaction costs and improve efficiency is critical for stakeholders looking to stay competitive and increase profitability. Security and risk management: As online banking systems become more pervasive, so do the associated risks—especially those related to cyber security. Research in this domain is essential for developing effective security protocols, understanding fraud prevention strategies, and managing data privacy concerns. It ensures continuous improvement of security measures to protect both financial institutions and consumers. Customer Satisfaction (Benefit), Transaction Speed (Benefit, sec), Implementation Cost (Non-Benefit, $000), Security Rating (Non-Benefit). System A, System B, System C, System D, System E.

Do Banks Practice What They Preach? Brown Lending and Environmental Disclosure in the Euro Area

Do Banks Practice What They Preach? Brown Lending and Environmental Disclosure in the Euro Area

The Impact of the Issuance of e-CNY on the Business Strategy of Commercial Banks

This article comprehensively analyzes the issuance background, main features, technical architecture, and the impact on commercial banking operations and regulatory systems of China's Digital Currency Electronic Payment (DCEP or e-CNY). E-CNY is a legal digital currency that has the essential functions of money and a centralized two-tier operating system, making it compatible and stable with the current financial system. The article first outlines the main characteristics of e-CNY, reviews in detail the research and development process and pilot situations since 2014, and demonstrates its application progress in various scenarios. Furthermore, the article delves into the profound impact of e-CNY on commercial banks' deposits, loans, and international operations, suggesting that e-CNY may reduce the deposit base of commercial banks while providing Chinas small and medium-sized enterprises (SMEs) with a lower-cost financing channel, thereby promoting the development of the real economy. On the international front, promoting e-CNY is expected to enhance cross-border payments' efficiency and strengthen CNY's international competitiveness. Subsequent analysis of the practice of China Construction Bank (CCB) in the field of e-CNY showcases how commercial banks adapt to the era of digital currency. It also points out the need for further clarification and improvement of the regulatory framework to ensure the sustainable development of e-CNY. Finally, particular attention is given to the regulatory challenges e-CNY poses, especially regarding anonymity management, personal information protection, and delineating regulatory responsibilities.

Down the banking hole: Investigating the case of Slovenian banks

The aim of this paper is to analyse who was responsible for the deterioration of the Slovenian banking sector to such an extent that it was almost destroyed by the 2008 financial crisis, necessitating the consideration of an international bailout. A literature review focused specifically on reports from law enforcement agencies and commissions that investigated banking practices, complemented by a qualitative empirical study. In order to gain insight into the reasons why this situation unfolded, ten structured interviews were conducted. The interviewees included experts with experience in the fields of prevention, detection, investigation and prosecution of economic crime, bad credit management, central banking, parliamentary committee management, forensic investigations, investigative journalism, and experts with academic knowledge in law and economics. Five different investigations explored the behaviour of banking sector actors before, during, and after the 2008 financial crisis. These investigations revealed behaviours ranging from negligence to criminal acts. The interviews indicated that the perpetrators were individuals of high social status with significant influence, explaining why people are often not willing to testify against them. On the detection and prosecution front, the main challenges were fears among criminal investigators, prosecutors, judges, and others of retaliation from superiors, job loss, and being publicly lambasted in the media.

Quantitative Finance and Information Technologies: A Comparative Analysis of Quantitative Trading and Cryptocurrency and Their Regulatory Challenges

As technology has improved in the last decade, financial institutions have developed new technologies, including quantitative trading and cryptocurrency, to enhance their financial products and services. This paper first provides a brief background of quantitative trading and argues for the transactional efficiency of quantitative trading over traditional trading practices; it characterizes quantitative trading as fast and precise. Meanwhile, the study also accounts for the regulatory concerns–including data leakage and platform security–that quantitative trading firms may encounter. This study then establishes a distinction between cryptocurrency and quantitative trading–the former is money-driven, and the latter is data-driven. This paper then discusses the speculative nature of cryptocurrency and addresses its financial concerns citing the FTX collapse. Overall, this paper establishes the argument that quantitative trading supported by technological experts and facilitators offers more advantages than disadvantages compared to cryptocurrency trading. This research concludes that since quantitative trading and cryptocurrency trading are conducted without consideration for international boundaries, they offer bold financial potential as alternatives to traditional banking practices, as long as specific international financial laws are complied with.

Examining the impact of fintech and other factors on banking practices: QISMUT + 3 countries

Examining the impact of fintech and other factors on banking practices: QISMUT + 3 countries

Sustainable Development through Green Banking and CSR Practices of Bank of Baroda

Sustainable Development through Green Banking and CSR Practices of Bank of Baroda

Using the balance sheet framework for monetary analysis: The case of China

AbstractMonetary analysis has been out of fashion lately. However recent economic and inflation dynamics call for renewed attention. Since 2021, broad money growth has been associated with high inflation and overheated production. Central banks and academia should pay more attention to monetary analysis to understand the economic dynamics and formulate better monetary policy. This article briefly reviews the monetary analysis practices of major central banks and then focuses on China as a case study. We set out the features of the balance sheet of depository corporations, and use it as a basic framework for monetary analysis. There are seven money‐supply channels of broad money, which fluctuate because of seasonality, demand conditions, regulation, and financial institutions micro‐managing indicators. Any change of broad money will be reflected through the balance sheet. Applications include analysing long‐term evolution of money supply channels, analysing and predicting monetary growth, recording major financial incidents, and so forth.

Research on the Impact of Digital Financial Technology on the Business Model Transformation of Commercial Banks

This paper explores in depth the broad impact of digital financial technologies on the business models of commercial banks and analyzes in detail the transformation strategies that commercial banks should adopt in response to these changes. With the rapid development of cutting-edge technologies such as big data, cloud computing, artificial intelligence, and blockchain, digital finance has become an irreversible trend in the financial industry, which has not only changed the way financial services are provided, but also reshaped the market competition pattern of commercial banks. This paper first expounds the impact of digital financial technology on the traditional business model of commercial banks, including the reduction of market entry threshold, the change of competition focus and the innovation of risk management model. Then, the paper focuses on the specific strategies of commercial bank business model transformation, including technological innovation, organizational structure optimization, process management improvement, talent training and introduction, and strengthening cooperation and win-win situation. Through the introduction of the actual case analysis, it shows the successful practice and lessons of commercial banks in the business model transformation. Finally, this paper concludes that the key to the successful transformation of commercial banks' business model lies in the deep integration of technology and business, as well as the ability to flexibly respond to market changes and customer needs. Only in this way can commercial banks remain competitive and achieve sustainable development in the era of digital finance.

Evaluating the Factors Affecting the Involvement of Shariah Committees in Risk Management Practices in Islamic Banks: Qualitative Research in the Kingdom of Saudi Arabia

Purpose: This study aims to add to the existing literature on Islamic finance by explaining the ways in which Shariah committees can improve and strengthen their influence over Islamic banks’ risk management practises. This research attempts to break down the complexities of Saudi Arabia’s risk management and identify the crucial role that Shariah committees play in ensuring compliance with Shariah law. Design of study: A qualitative research method was adopted conducting semi-structured interviews. Purposive sampling was used to choose 34 individuals. The data were analyzed using thematic analysis, with the use of NVivo software, which made it easier to identify patterns in the Arabic answers. Following the ethical norms established by RMIT University, obtaining participants’ explicit consent, and guaranteeing anonymity are all of the top priority. Findings: Several factors determine Saudi Islamic Bank Shariah Committee risk management. An effective regulatory framework, Shariah committee-bank leadership communication, and learning of Islamic financial ideas can aid in Shariah compliance. However, interpreting complex financial services within Shariah, inconsistencies between Islamic principles and standard risk management methodologies, and a shortage of competent Shariah scholars with banking and risk management knowledge may slow development. Research is needed to understand Saudi procedures. Originality: The current research comprehensively documented potential factors that facilitate or resist the involvement of Shariah Committees in practices of risk management in Saudi Arabia’s Islamic banks.

Strategic Relationship of CRM with Effectiveness of Branch-Banking and E-Banking: An Input for Innovative Marketing of Banking Products

A profitable relationship between today’s tech-savvy customers and banks is the primary component for most of the strategies of the banking organizations. So, the main purpose of this research-work is to test the structural paradigm of CRM (Customer Relationship Management) with the effectiveness of e-banking and branch-banking. With a sample size of 518 bank customers through a stratified sampling method, SEM (Structural Equation Modeling) is applied to test the above-mentioned structural relationship after testing two measurement models through CFA. So, this study proceeds with an experimental research design. Major outcomes of the study indicate that the CRM practices of banks have a significant direct effect on the effectiveness of e-banking; along with significant indirect effect through the mediation of the effectiveness of branch banking. Further, customer biases are seen to significantly moderate the above effects, and the model invariance is also successfully tested. Novelty refers to structural relationships among components of both traditional business practices (branch banking) and modern business practices (e-banking) have never been studied prior to this research work having CRM as its context. Practical implications say that the structural relationship along with testing results of moderation effect of customers’ biases and model invariance is providing innovative input for marketing strategies of banking products/services. Further, results of this study can create social awareness regarding concerns of banks regarding economic development of society. Rather than taking bank-customers’ opinion only, the bank-employees’ inputs alongside would be strengthening the research outputs.

Integrating Theory and Practice of Banking M&A: Towards a Composite IT Integration Framework

Integrating Theory and Practice of Banking M&A: Towards a Composite IT Integration Framework

EFFICIENCY OF MONETARY POLICY IMPLEMENTATION AS A BASIS FOR CENTRAL BANK STABILISATION POLICY UNDER MARTIAL LAW (UKRAINIAN AND ISRAELI PRACTICES)

The purpose of the paper is to summarise and present the anti-crisis practices of a central bank during martial law in the country, based on the experience of the National Bank of Ukraine and the Bank of Israel. The research methodology is based on an analysis of reports, guidelines, statistical data, scientific articles, legislation bases, and other relevant materials. One of the methodological aspects of this study is a comparison of the knowledge acquired about the regulations implemented by the two central banks after the introduction of martial law in the countries. The objective is to identify potential lessons learned for the banking regulations of Ukraine and the State of Israel. The results of the study show that the practical implementation of stabilisation measures by central banks is crucial for achieving financial stability of the state both during and after wartime, as well as the ability to predict possible deepening of crises and minimise their consequences. The tools and methods used by these central banks differ. In particular, the NBU's main monetary policy instrument was foreign exchange interventions, while the BoI actively used the key policy rate. The proper formation of international currency reserves and the possibility of using them during a war-related crisis is critical for both countries. This fact confirms that crisis management has different types of scenarios. Each anti-crisis scenario is unique. This paper highlights the practical need for interaction between monetary and macroprudential policies of the central bank in wartime. It demonstrates various combinations of methods and instruments of the central bank's monetary policy. This study also shows the interdependence of the economies of these two countries. Practical implementation. This analysis provides insight into the anti-crisis activities of central banks during unpredictable periods in a country's life, namely, during martial law. At the present stage, banking systems do not often face the challenges of war. Therefore, studying each case is important for improving theoretical knowledge and deepening practical research. Value / Originality. The author of the study collected the experience and practices of stabilisation activities of the central banks of Ukraine and Israel during the war.

Indonesian Islamic Banks’ Post-Pandemic Profitability Alignment with Sustainability Goals

Purpose — The Islamic banking sector in Indonesia has recovered from the COVID-19 pandemic. Despite the sector’s resilience to the crisis, Islamic banks have lower levels of profitability than their conventional counterparts. They therefore need to optimise profitability as well as implement sustainability practices due to their high reliance on income from intermediary functions and their core principle of protecting life and preventing harm. This study aims to optimise the post-pandemic profitability of Indonesian Islamic banks while seeking to align profitability with sustainable development goals (SDGs). Design/Methodology/Approach — The model is developed based on the combination of linear programming and financial analysis, with constraints considering banking regulations and practices. The model highlights financing product types, financing fields of business, and types of deposit products that contribute to higher profits and support sustainability practices. Findings — The recommended financing product types, financing fields of business, and deposit product types lead to profitability growth of up to 85 per cent, even better than the pre-pandemic performance of Islamic banking and the overall Indonesian banking industry. This research also finds that Islamic banks’ strategy for profit optimisation is consistent with the increasing support for SDGs. Originality/Value — There is a lack of literature discussing the alignment of Islamic banks’ profit optimisation with the SDGs. This study contributes to the literature by aligning the Islamic banks’ profitability strategy with sustainable financing. Research Limitations/Implications — The study is expected to promote the implementation of sustainability practices as well as increase the profitability of Islamic banks, drawing from evidence in Indonesia.