Banking Practices Research Articles

Sharia-supervisory board’s characteristics and green banking disclosure: exploring from Islamic banking in MENA countries

Purpose This study aims to investigate the extent to which the characteristics of Sharia supervisory boards (SSB) in banking institutions impact the disclosure of information pertaining to green banking practices. Design/methodology/approach A comprehensive dynamic panel data analysis approach was applied to a data set comprising Islamic banks from 15 countries in the Middle East and North Africa (MENA) region, covering the period from 2012 to 2022. In addition, a series of robustness and endogeneity analyses were conducted to ensure the consistency of the main findings. Findings This study shows that the characteristics of the SSB significantly impact the green banking disclosure practices of Islamic banks. Specifically, the proportion of board members who hold multiple SSB positions and the presence of foreign board members exhibit a negative and significant effect on green banking disclosure. Conversely, the size of the SSB is positively and significantly associated with green banking disclosure. Thus, the extent of green banking disclosure in Islamic banks is likely to increase with the size of the SSB. However, an increase in board members’ external commitments and a higher proportion of foreign board members are associated with a decline in green banking disclosure. Further analysis supports these findings, confirming their consistency across different contexts. Research limitations/implications The findings of this study highlight the critical role that the composition and characteristics of the SSB play in shaping the green banking practices of Islamic banks in MENA countries. These insights provide valuable guidance for policymakers and Islamic financial institutions aiming to strengthen sustainability practices while adhering to Shariah principles. As green banking becomes increasingly crucial in the global financial landscape, optimizing the SSB’s composition could be a key driver in advancing the environmental goals of Islamic banking in the MENA region. Practical implications Islamic banks in the MENA region should focus on optimizing their SSB composition to enhance green banking disclosure. Increasing the size of the SSB can positively influence disclosure practices. However, banks should manage board members’ external engagements to ensure they have sufficient focus on green initiatives. Strategic recruitment of foreign members with a commitment to sustainability, coupled with targeted training programs, can further improve disclosure. Originality/value Specific SSB characteristics such as size and foreign board members influence disclosure of green banking, which previous studies did not conduct research on.

The sphere of lending according to the legislation of Ukraine and the EU regarding the protection of consumer rights

The article examines the peculiarities of the protection of consumer rights in the field of lending under the legislation of Ukraine and the EU from the point of view of bringing national legislation into line with the requirements of EU law in this area. It was determined that the EU is actively working on improving legal mechanisms for the protection of consumer rights in the field of consumer credit through the adoption of new acts. The article analyzes individual changes in this area, as well as outlines the reasons for such changes. In modern banking practice, a fairly wide list of types of consumer loans is used, the main classification features of which are: types of creditors; types of borrowers; repayment methods; terms of use; degree of credit coverage of the cost of goods, works, and services; software; interest payment methods; lending facilities, loan amounts, loan currency, etc. But the presence of a large number of banking products does not exclude the possibility and does not reduce the need for their further development and expansion, which should contribute to the development of consumer lending in general. The level of socio-economic development of the country directly affects the development of consumer lending, at the same time, the dynamics of such macro-indicators as gross domestic product, income and expenditure of the population, volumes of services provided, retail turnover, average monthly nominal wages, etc. have the greatest influence. Consumer lending has a higher efficiency compared to corporate lending, and this is explained not only by its high profitability, but also by the presence of additional income that accompanies the provision of consumer loans. At the same time, the effectiveness of consumer lending depends on the terms of granting, and accordingly, short-term consumer loans are more effective. Therefore, the performance of banks in general as part of the banking system of Ukraine depends on how the mechanism of consumer lending in banking institutions is formed, how regulation and regulation of consumer lending is carried out. Positively evaluating the adoption of the relevant Law in 2016, the author notes the need for its revision and improvement, taking into account Ukraine’s European integration progress, as well as the importance of preserving the economic well-being of the population of our state in the face of a full-scale invasion. According to the author, the corresponding changes should concern the requirements for information about consumer credit, the specifics of its conclusion from the point of view of accompanying financial instruments, as well as the simplification and improvement of legal mechanisms for early termination of consumer credit contracts.

The Effect of Green Banking Practices on Banks’ Sustainability Performance and Green Brand Image: An Empirical Study of an Emerging Economy

The Effect of Green Banking Practices on Banks’ Sustainability Performance and Green Brand Image: An Empirical Study of an Emerging Economy

Impact of Green Banking Practices on Green CSR and Sustainability in Private Commercial Banks: The Mediating Role of Green Financing Activities

Impact of Green Banking Practices on Green CSR and Sustainability in Private Commercial Banks: The Mediating Role of Green Financing Activities

“Exploring the Relationship between Green Banking Practices and Customer Loyalty”

“Exploring the Relationship between Green Banking Practices and Customer Loyalty”

Towards a Greener Future: Sustainable Banking Practices in Bangladeshs Commercial Banks

Green Banking is nowadays the most crucial issues in the financial arena. Globally the financial institutions are trying to accord to conserve the environment. The central bank of Bangladesh also formed some policy regulations for the banks and financial institutions to gain feasible development. The prime objectives of such article toward present the current status of sustainable banking practices of commercial banks in Bangladesh. A questionnaire survey method was used to collect required data about green banking awareness, online banking, greener future, natural environment, ethical and energy efficiency, training for consumer awareness, communication transaction, solar& biogas, green deposits and accounts, sustainability of banking, minimizing greenhouse effects, reducing carbon footprint from banking activities, pollution checkup camps, mitigate the risk of climate change, focuses on saving paper, debit & credit cards practices on 300 employees of different commercial banks. Also secondary data was collected from various articles to learn throughout the green banking implementation. From this research it has been figured out that there is designed green banking practices of merchant banks in Bangladesh. In order to improve the degree of satisfaction, motivation of clients various programs are offered by the commercial banks. This report is not sufficient for developing any conclusion but still the report may be useful for designing any further study to evaluate the green banking facilities provided by the financial institutions in Bangladesh.

Unlocking Potential: A Comprehensive Overview of Cell Culture Banks and Their Impact on Biomedical Research.

Cell culture banks play a crucial role in advancing biomedical research by providing standardized, reproducible biological materials essential for various applications, from drug development to regenerative medicine. This opinion article presents a comprehensive overview of cell culture banks, exploring their establishment, maintenance, and characterization processes. The significance of ethical considerations and regulatory frameworks governing the use of cell lines is discussed, emphasizing the importance of quality control and validation in ensuring the integrity of research outcomes. Additionally, the diverse types of cell culture banks-primary cells, immortalized cell lines, and stem cells-and their specific contributions to different fields such as cancer research, virology, and tissue engineering are examined. The impact of technological advancements on cell banking practices is also highlighted, including automation and biobanking software that enhance efficiency and data management. Furthermore, challenges faced by researchers in accessing high-quality cell lines are addressed, along with proposed strategies for improving collaboration between academic institutions and commercial entities. By unlocking the potential of cell culture banks through these discussions, this article aims to underline their indispensable role in driving innovation within biomedical research and fostering future discoveries that could lead to significant therapeutic breakthroughs.

Unlocking sustainability: exploring the nexus of green banking, digital transformation, and financial performance with foreign ownership moderation

The purpose of this research is to empirically test and analyze the impact of green banking, digital transformation, and asset quality on the financial performance of commercial banks with foreign ownership as a moderator. Additionally, it aims to test and analyze the financial performance of sustainable business practices for commercial banks. This study was conducted on commercial banks, specifically focusing on bank groups categorized by core capital levels 3 and 4, listed on the Indonesia Stock Exchange, covering the period from 2017 to 2022. This research employed a judgment sampling technique, encompassing a total of 47 conventional commercial banks. Panel data regression analysis, a data analysis technique, used three variables: the dependent variable, the independent variable, and the moderation variable. The research unveiled that green banking does not appear to have a significant positive impact on financial performance, whereas digital transformation shows a clear positive effect. Non-performing loans, a measure of asset quality, also affect financial performance. Additionally, foreign ownership strengthens the impact of green banking on the financial performance of commercial banks in Indonesia. However, foreign ownership does not enhance the effect of digital transformation. Finally, foreign ownership plays a moderating role in the relationship between asset quality and financial performance in these banks. Ultimately, financial performance has a significant positive influence on sustainable business, suggesting that stronger financial performance contributes to the long-term sustainability of a bank’s operations. The implications of these findings are, first and foremost, that financial institutions should prioritize incorporating sustainable and environmentally friendly practices into their operations to improve their overall financial performance and emphasize the critical role of digital transformation in enhancing financial performance. Consequently, financial institutions are required to allocate resources towards information technology infrastructure and cultivate digital capabilities to adapt to evolving customer demands, such as offering 24/7 banking services from any location. Secondly, financial institutions should not stay far away from digital disruption, but rather embrace it and adapt their strategies accordingly, which includes allocating an adequate budget for IT infrastructure investment and accessing digital services that meet the banking industry’s demands, resulting in effective communication of sustainable practices.

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.

Analisis Implementasi Fatwa DSN-MUI No. 4 Tahun 2000 dalam Perspektif Hukum Praktik Perbankan Syariah di Indonesia

Fatwa DSN-MUI No. 4 of 2000 is a crucial guideline in Islamic banking practices in Indonesia, regulating the fundamental principles and operations of Islamic financial institutions. This study aims to analyze the implementation of the fatwa within the context of Islamic banking in Indonesia, focusing on the challenges encountered and potential solutions. The research methodology involves a qualitative approach with document analysis and interviews with Islamic banking practitioners. Findings reveal that while the fatwa provides clear guidelines, its implementation still faces several challenges, such as differing interpretations of Sharia principles and limited human resources. Proposed solutions include enhanced training for Islamic banking staff and the development of more effective supervision systems to ensure compliance with Sharia principles.

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.