Banking Security Research Articles

Ensuring financial security of the region in the conditions of the economic crisis

The article analyzes one of the main problems of the modern economy – the economic security of a
 bank based on capital use procedures. The role of commercial and central banks in the Russian Federation is determined. Along with this, the system is considered in detail.
 the components of economic security in general, as well as their characteristics. Special attention is
 paid to the bank's security levels and their threats, as a result of which a description is given. Attention
 is focused on the functions of bank capital and its components. The indicators on the basis of which
 the capital is assessed are highlighted. Arguments are given about the proposal to increase bank reserves, on the basis of which the negative and positive consequences of this proposal are highlighted.

A Research Paper on Biometric based ATM System

Abstract: Biometrics-based authentication is a potential alternative to password-based authentication. Of all biometric methods, face-based identification is one of the most convenient one. In ATM systems, facial images are captured using a high resolution camera. Bank security measures can play an important role in preventing customer attacks. These measures are of paramount importance in addressing the weaknesses of civil lawsuits. Banks must meet the criteria to provide their customers with a secure banking environment. This paper focuses on the increased vulnerability and criminal activity of automated teller machines (ATMs), not the bank themselves. Both customers and bankers. Keywords: Automated Teller Machine (ATM), Camera, Verification, Crime, E-Banking.

EFFECT OF INTEREST RATE RISK ON FINANCIAL PERFORMANCE THE MEDIATING ROLE OF BANKING SECURITY DEGREE: EVIDENCE FROM THE FINANCIAL SECTOR IN JORDAN

The current study aims to determine the effect of interest rate risk on financial performance through the banking security degree as a mediating variable. The study population includes 13 Jordanian commercial banks from 2011 to 2018. To achieve the current study objectives, a descriptive and analytical approaches were used. Furthermore, Baron and Kenny’s test (1986) were adopted to examine the current study hypotheses. The results found that the banking security degree partially affects the relationship between interest rate risk and financial performance. Accordingly, this study provides a set of recommendations. Among them, we encourage policymakers and bank owners, and managers to develop efficient interest rate risk policies continuously in addition to strengthening the monetary and financial policies of the banking sector. They should strive to achieve a balance between each of the risks of interest rate, performance, and banking security degree.

METHODICAL TOOLS FOR INTEGRATED ASSESSMENT OF THE ECONOMIC SECURITY OF UKRAINE’S BANKS

Abstract. The article offers methodical tools for integrated assessment of the economic security of banks. It is based on 59 indicators and takes into account such components of security as resource, asset-forming (transformational), risk-forming, stabilization and functional, productive. The resource component of banks’ economic security reflects the sufficiency of their own, involved and borrowed financial resources for stable and efficient operation to make a profit and protect the interests of shareholders, depositors, and creditors. The asset-forming (transformational) component of economic security is one of the most important, as it represents not only the degree of use of the banking system’s potential in economic development but also the credit and investment direction of assets, their quality, the degree of problematicity, and the impact on the economic security of the banking sector. Assessing the impact of risk on economic security involves the use of the indicators of prudential banking supervision, namely basic economic standards and several coefficients that reflect the risk of active banking transactions. The stabilization and functional component of economic security shows the impact of macroeconomic indicators on the state of the monetary and credit market and inflation rate. Profit (loss) as a result of the functioning of the banking system is one of the key indicators of security and a necessary prerequisite for the implementation of development strategies. This approach allowed determining the level of the economic security of Ukrainian banks based on the calculated value of the integral indicator. The differentiation of the quantitative value of the indicator within the proposed values allows assessing the level of banks’ security as high, satisfactory, low, critical. The practical significance of this approach is that it allowed identifying risks, threats, and dangers to banks and defining the most significant of them. Keywords: banks, economic security of banks, integrated assessment, risks, threats, dangers. JEL Classification G 21, D 81 Formulas: 5; fig.: 1; tabl.: 0; bibl.: 11.

Computer Vision Operating System of Bank Economic Management Security under 5G Wireless Communication Technology

Based on 5G wireless communication technology, this paper proposes a secure online banking payment scheme using a password algorithm and identity authentication+SMS verification code. We use the lightweight block cipher algorithm to construct a numeric permutation table. Then, we use the digital permutation table to perform the permutation encryption operation to obtain the digital ciphertext data. Finally, we connect 5G radiofrequency identification, identity authentication, and other modules to the trusted computing platform. The research found that the online banking security encryption algorithm proposed in the paper has the characteristics of high security and high efficiency.

Present Status of it Security of Madurai District Central Cooperative Bank, Tamil Nadu

Though the Computerization of Cooperative Banks started during the new millennia, it catches up with Madurai District Central Cooperative Bank during 2010 at a leisure pace only. Initially, an application approved by the TNSCB was in use though it was developed locally. DCCBs of Tamil Nadu were using different types of Software in different regions, and it resulted in a nightmare for Bank Integration and further expansion.Hence adopting the prudential norms, RBI’s IT security policy, NABARD circulars on IT security instructions, continuous monitoring the Banking news and events, Interacting with Bankers in seminars and training, and updating security protocols will surely save the Bank from any kind of Internal and External threat to its IT infrastructure.

FORMATION AND MANAGEMENT OF THE BANK'S INVESTMENT PORTFOLIO

For effective investment activity of banks, it is necessary to optimize and manage the bank's securities portfolio.The modern portfolio management system has a sufficient arsenal of effective tools, including a number of principles and approaches.The volatility of the Kazakhstan stock market requires the accounting service to pay increased attention to the main function of professional financial agents (including commercial banks) - resource management. The multi-dimensionality of the modern investment portfolio of a commercial bank goes beyond the traditional "accounting" model, that is, the description of the results of portfolio management activities by drawing up the balance sheet. Accordingly, within the framework of the organization of the subject of financial activity, the problem of managing the investment portfolio, building a model and technological implementation arises.Given the huge potential of theoretical developments in the field of portfolio management, Kazakhstan's commercial banks are lagging behind in the practical implementation of management models. Decision-making within the standard organizational structure of commercial banks does not reflect the current capabilities and requirements for resource management. With the development of the Internet and information technologies in Kazakhstan, the time allocated to top managers for making managerial decisions has sharply decreased. Thus, it is necessary not only to develop a model of resource management in the financial markets, its practical implementation has also become a factor in the competitiveness of a commercial bank. The relevance of the study lies in the lack of a comprehensive approach to the practical implementation of the investment portfolio management process, starting with the creation of the organizational structure of a commercial bank and ending with the introduction of management models based on improved information.

Development of financial inclusion from the standpoint of ensuring financial stability

Since 2013–2015, financial inclusion has been considered a determinant of economic and social inclusion. Meanwhile, the impact of financial inclusion on economic development directly depends on financial stability. This paper focuses on the development peculiarities of financial inclusion in relation to ensuring financial stability and provides recommendations to Ukraine. The inclusive development theory and gap theory form the theoretical research base, while generalization, statistical methods, coefficient and graphical analysis, comparison and ranking represent its methodological basis. Financial institution development, financial literacy, income level, cashless economy, and public confidence have been justified as the content-forming factors and impact channels of financial inclusion on financial stability. The development peculiarities of financial inclusion are studied by cross-country analysis considering different financial system models and economic development levels. The weak points of financial inclusion in Ukraine are a sevenfold gap between the banks’ assets and non-bank financial institutions and 37% of the unbanked adult population. Moreover, there is a significant gap between the levels of human capital readiness and information security of banks’ digitalization compared to EU banks – by 2.5 and 1.3 times, respectively, and a critically high level of distrust in banks (70%) with a reasonably high share of payment applications users (58%).Further developing of financial inclusion and ensuring financial stability in Ukraine requires improving credit cooperation by transforming its structure from multi-institutional to mono-institutional and introducing the developed indicative tools for monitoring potential financial stability threats caused by technological innovations. AcknowledgmentThe study has been conducted within the framework of Applied Research “Ensuring financial stability of the financial sector of Ukraine’s economy on the basis of sustainable development and in the face of the latest epidemiological challenges” with the financial support of the Ministry of Education and Science of Ukraine (state registration number 0121U113271). The authors are also thankful to the editors and anonymous reviewers for their useful suggestions and comments to improve the quality of this paper.

SECURITY MANAGEMENT OF UKRAINIAN BANKS

The purpose of the study is the current state and trends in the development of the banking system of Ukraine. The main problems of functioning of banking institutions at the present stage of reforming the state economy were revealed. The essence and content of the category of banking security is analyzed, the role and importance of guaranteeing the safety of banks in the system of financial security of the state is shown. The main threats and risks to banking security in general are described, the principles of improving the level of banking security are outlined. The category of banking security is characterized by: the state of security of banking activities and resources of a financial institution, the ability to develop effectively in the strategic dimension, the ability to withstand threats, protect the economic interests of participants and the ability to increase the overall financial and economic potential. Methodology. Improvement of the mechanism of banking security is the implementation of measures at the level of the bank and the banking system as a whole. The measures include: improving regulatory support, bringing activities closer to international standards of banking services, introduction of conceptual approaches to strategic management of banks' financial security, improving the quality of corporate governance and bank management, etc. Results. To ensure the sustainable development of the national financial system, it is necessary to "improve" the management systems of banks, ensuring full economic protection from external and internal factors, which is one of the main directions of state policy in the field of economic security. Value/originality. Ensuring stability of the banking system, prevention of systemic banking crises is the most important task of authorized government bodies in the field of financial sector regulation. Considering the notion of banking supervision, it can be noted that "banking supervision" is a monitoring system consisting of state, international, inter-bank, intrabank, intra-bank supervision in the form of preliminary, introductory and current supervision from the establishment until liquidation of a bank or its subdivisions. It should be noted that banking supervision is a systemic system that comprises several closely intertwined elements. The components of banking supervision are control proper, which boils down to study or observation of compliance with legislation in the activities of banking institutions, as well as active actions by the National Bank of Ukraine to apply appropriate enforcement measures. The mechanism for ensuring the smooth functioning of the country's banking system is a set of tools used by government agencies and providing for regulatory and supervisory measures.

Prediction of Loan Behaviour with Machine Learning Models for Secure Banking

Given loan default prediction has such a large impact on earnings, it is one of the most influential factor on credit score that banks and other financial organisations face. There have been several traditional methods for mining information about a loan application and some new machine learning methods of which, most of these methods appear to be failing, as the number of defaults in loans has increased. For loan default prediction, a variety of techniques such as Multiple Logistic Regression, Decision Tree, Random Forests, Gaussian Naive Bayes, Support Vector Machines, and other ensemble methods are presented in this research work. The prediction is based on loan data from multiple internet sources such as Kaggle, as well as data sets from the applicant's loan application. Significant evaluation measures including Confusion Matrix, Accuracy, Recall, Precision, F1- Score, ROC analysis area and Feature Importance has been calculated and shown in the results section. It is found that Extra Trees Classifier and Random Forest has highest Accuracy of using predictive modelling, this research concludes effectual results for loan credit disapproval on vulnerable consumers from a large number of loan applications

Forensic Analysis of Security features in India Bank Cheque- Authentication & Recognition through Docucenter Nirvis

Abstract: Cheque is one of the most important and commonly encountered financial documents by many individuals and banks for various financial transactions all over the world. Thus, the security and integrity of the cheque is the acute need. Different kind of security features are embedded in bank cheques in order to prevent fraud and counterfeiting of cheques and other bank security documents. Security features appended are in two different ways covert and overt features, some of which are watermarks, logo, serial number, A/c number etc. which can be viewed under different light sources and instruments for examination. In this study the embedded security features of Indian Bank Cheque are examined under instrument Docucenter Nirvis. After examination, deriving to the conclusion that the Indian bank note is appended with ample security features. Keywords: cheque, security features, embedded, examination, counterfeiting

E-BANKING SECURITY DILEMMAS OF USERS LIVING IN RURAL AREAS – THE CASE OF KONIN COUNTY IN WIELKOPOLSKA

The aim of the study was to identify selected threats to e-banking security in the opinion of rural residents, on the case of Konin County. Available e-banking services were analysed against the background of cybercrime threats. The research was conducted in the year 2019. In the spatial scope, it concerned Wielkopolska and the territory of the Konin County, which consists of 14 municipalities, including 5 urban-rural municipalities and 9 rural municipalities. Using the method of diagnostic survey, on a sample of almost 400 people invited to the study, the results were collected. The majority of respondents were rural residents. The survey questionnaire consisted of 22 closed questions and information data. Suggested answers were programmed according to a five-point Likert scale. The study used Pearson’s chi-square statistical test of independence, comparative and descriptive analysis. Calculations were performed in MS Excel. As a result, a relatively high level of interest in e-banking among the residents of Konin county was indicated. More than 90% of respondents, primarily rural residents, use online banking. This is especially applicable to retail payments, as well as successive control of the household budget. E-banking’s usability is mostly determined by: time saving, a widespread availability of services and convenience. Despite the awareness of risks, the level of security of online banking inspires confidence among respondents. Therefore, social and legal responsibility of the banking sector for electronic transaction security is recommended. This is justified by the majority of respondent opinions that traditional banking will be eliminated in the future by e-commerce tools, including e-banking.

The method of assessing the quality of management of the bank's securities portfolio in the conditions of digitalization of the economy

The method of assessing the quality of management of the bank's securities portfolio in the conditions of digitalization of the economy

Methodology for ensuring economic security of commercial banks

In recent years, the developed financial and economic relations of Uzbekistan active promotes structural economic reforms and modernization of the functioning of the banking system in order to ensure sustainability of the economy. Methods to improve the security mechanism should be explored economic security based on economic illegal encroachments and occurrence of risk areas banks. The purpose of the study is to provide theoretical justification and develop organizational and methodological foundations for the development of the mechanism for ensuring economic security of commercial banks. When developing this problem, the following methods are used: dialectical, analytical, systematic approach, quantitative and qualitative information processing, formal-logical, empirical, expert assessments, etc. on the security of banking activities. The subject of the study is the system of management relations that have emerged in the process of functioning and development of the mechanism for ensuring the economic security of commercial banks from the influence of various threats and banking risks, updating the tools for their implementation, and the object of the study is a set of economic entities engaged in entrepreneurial activities in the banking sector. In this study, a study is conducted to assess the development of the security mechanism economic security of the bank and banking services. Based on the study, proposals are put forward from the point of view of the existing form of banking services and the use of information technologies in order to determine the level of collateral economic security of the bank and optimization of the structure of banking services. This will help better prepare the banking system for new challenges.

THEORETICAL AND PRACTICAL ASPECTS OF MANAGING THE FINANCIAL AND ECONOMIC SECURITY OF BANKS

Introduction. Existing economic and managing ways to ensure the financial and economic security of banks in Ukraine are not always reliable tools, because its mostly relate to certain aspects of the bank's activities, rather than the bank as a whole open dynamic dynamic system. According to the system approach, the basis of security of such systems is the bank's compliance with stability and dynamic balance. In this case, the stability should be considered in three aspects – the stability of the trajectory of development, the stability of the attractor and structural stability. The purpose of the study is the theoretical justification and development of practical recommendations for the building an effective system of financial and economic security management of banks considering the risks in its activities. Method (methodology). The methodological basis of the study is a systematic approach, methods of analysis and synthesis, theoretical and logical generalisations and hypotheses, economic and mathematical methods. Results. It was justified the expediency of using an integrated model of financial and economic security management of banks, which is based on an effective risk management system and provides a systematic process of risk identification, measurement, monitoring, control, reporting and appropriate regulation at all organizational levels. The proposed integrated model should include such basic components as: assessment of the existing security potential of the bank; adaptive (stabilizing) mechanism; obtaining a synergistic effect. The building of an effective system for managing the financial and economic security of banks is impossible without high-quality diagnostics and constant monitoring of the security potential of banks. A summary indicator has been developed to assess the potential of financial security of banks assessment, which is calculated on the basis of risk and the available potential of the bank's strength. It is proposed to use early warning signals that consider the dynamics and variability of liquidity and performance of banks. Experimental testing of the proposed instruments was carried out according to the financial statements of banks. The article reveals the essence of financial and economic security of banks and identifies components of the mechanism of bank security management. Developed conceptual approaches involve the use of preventive methods to prevent threats to the security of banks.

Securitization of Intellectual Property: Legal Recourse in India

Capital has been a major cause of concern amongst entrepreneurs across the globe. Not everyone enters the professional setting with a bag full of money, neither did the Ambani’s nor did the TATA group. It was not just investments into fruitbearing funds but also loans that have made them superpowers in the market, today. A loan requires one to offer collateral against the principal amount, this collateral is often referred to as security in common parlance. We most often offer tangible assets such as gold, land, car, etc. as security, however, can an intangible asset such as intellectual property also be offered as bank security? This question is dealt with at length by the authors while discussing the legal discourse in India and other developed countries.The authors have collected insights from theearlier cases where intellectual property was offered as security (more specifically as collateral) and analyzed its legal implications in the long run.

Use of AI Voice Authentication Technology Instead of Traditional Keypads in Security Devices

Traditional keypads and text-based passwords are vulnerable to scams and hacks, leading to enormous levels of embezzlement and frauds apart from various other threats to data security. AI based voice authentication holds unparalleled value for data protection, security, and privacy, by providing an effective alternative to traditional password-based protection. This paper reports the findings of a limited literature review that forms the basis for further research towards enhancing the reliability and security of AI voice authentication. Based on the findings of the review of existing literature, this paper proposes that integration of the blockchain technology with the AI voice authentication can significantly enhance the data security, starting from mobile devices to the security of big agencies and banks. The key processes in implementing an AI voice authentication system are proposed as a conceptual model, to facilitate further research for implementation.

МИЛЛИЙ БАНК ТИЗИМИНИ ТРАНСФОРМАЦИЯЛАШ ШАРОИТИДА ТИЖОРАТ БАНКЛАРИНИНГ ИНВЕСТИЦИОН ЖОЗИБАДОРЛИГИНИ ТАЪМИНЛАШ ИМКОНИЯТЛАРИ

Ensuring the investment attractiveness of commercial banks is one of the main issues of transformation of the national banking system. This is explained by the fact that ensuring the investment attractiveness of commercial banks is one of the mandatory conditions for placing bank securities at acceptable market prices and strengthening their resource base.The article identifies urgent problems related to ensuring the investment attractiveness of commercial banks of the Republic of Uzbekistan and develops scientific proposals aimed at solving these problems.

Організаційно-фінансовий механізм забезпечення фінансово-економічної безпеки банківської системи

an organizational and financial mechanism for ensuring the financial and economic security of a commercial bank is proposed, which, in real time and in situations that cannot be controlled using traditional methods, will minimize potential risks and change the internal institutional environment, positively affecting the financial and economic security of the country's banking system. It is shown that economic growth as a factor of national security is supported by the effective functioning of the banking system and the priority of long-term bank loans provided in the form of investments, which makes it possible to determine the relationship between the growth of the country's economy and the level of financial and economic security of the banking system. The main approaches to ensuring the financial and economic security of the banking system are considered, which include the structure of the primary interests of a commercial bank and indicators of the level of financial and economic security of the banking sector of Ukraine in order to ensure economic stabilization and strengthen the economic potential of the bank. It was noted that an adequate and fundamental marketing strategy will help to promote the growth of the bank's profitability, attract additional customers, form a resource base and reduce risk in banking. Mortgage lending is considered as the most effective tool for attracting funds from the population to the investment sector and meeting their needs for housing. A distinctive feature of the presented organizational and financial mechanism is the use of strategic management methods to form economic resources, improve the image and level of security of information systems, organize effective management of the bank's personnel, which will create conditions for ensuring the proper level of protection against negative factors and threats and increasing the competitiveness of the bank due to increasing the efficiency of the provision of banking services, preserving banking secrecy and the client base, creating new banking products

ANTECEDENTS OF THE ADOPTION OF E-BANKING IN SOUTH PUNJAB, PAKISTAN; AN EXTENDED FRAMEWORK

Factors such as perceived ease of usefulness, the perceived ease of use, trust, Government support, and security and privacy are examined to determine whether variables impact the adoption of internet banking in Pakistan. A survey was distributed to 152 respondents in South Punjab, Pakistan. Data is being analyzed by using Pearson correlation and regression analysis. The study's outcomes confirmed that the perceived usefulness, ease of use, government support, and security all positively associated with the intention to use internet banking in Pakistan. On the contrary, trust is found to be insignificant in this study. These results demonstrate that the bankers make strategies to enhance the customer's trust on the security and privacy of internet banking. Finally, Government should provide a supporting role for the banks trying to adopt internet banking.