scholarly journals BigTech and the changing structure of financial intermediation

2019 ◽  
Vol 34 (100) ◽  
pp. 761-799 ◽  
Author(s):  
Jon Frost ◽  
Leonardo Gambacorta ◽  
Yi Huang ◽  
Hyun Song Shin ◽  
Pablo Zbinden
Keyword(s):  
Financial Services ◽  
Financial Stability ◽  
Financial Intermediation ◽  
Financial Institution ◽  
Contract Enforcement ◽  
Economic Welfare ◽  
Money Management ◽  
Vast Amount ◽  
Digital Services ◽  
Early Evidence

SUMMARY Pablo Zbinden?>We consider the drivers and implications of the growth of ‘BigTech’ in finance – i.e. the financial services offerings of technology companies with established presence in the market for digital services. BigTech firms often start with payments. Thereafter, some expand into the provision of credit, insurance and money management products, either directly or in cooperation with financial institution partners. Focusing on credit, we show that BigTech firms lend more in countries with less competitive banking sectors and less stringent bank regulation. Analysing the case of Argentina, we find support for the hypothesis that BigTech lenders, by acquiring a vast amount of non-traditional information, have an advantage in credit assessment relative to a traditional credit bureau. They also serve unbanked borrowers, and may have an advantage in contract enforcement. It is too early to judge the extent of BigTech’s eventual advance into the provision of financial services. However, the early evidence allows us to pose pertinent questions that bear on their impact on financial stability and overall economic welfare.

scholarly journals Exploring the Role of Islamic Fintech in Combating the Aftershocks of COVID-19: The Pen Social Innovation of the Islamic Financial System

2021 ◽  
Vol 7 (2) ◽  
pp. 136
Author(s):  
Mustafa Raza Rabbani ◽  
Abu Bashar ◽  
Nishad Nawaz ◽  
Sitara Karim ◽  
Mahmood Asad Mohd. Ali ◽  
...  
Keyword(s):  
Financial Services ◽  
Open Innovation ◽  
Financial Stability ◽  
Social Innovation ◽  
Global Financial Crisis ◽  
Financial System ◽  
Real Economy ◽  
Business Context ◽  
The World

The purpose of the current study is to investigate the role of the Islamic financial system in recovery post-COVID-19 and the way Fintech can be utilized to combat the economic reverberations created by COVID-19. The global financial crisis of 2008 has established the credentials of the Islamic financial system as a sustainable financial system which can save the long run interests of the average citizens around the world while adding value to the real economy. The basic ethical tenets available in the Islamic financial system make it more suited and readymade to fight the economic aftershocks of a pandemic like COVID-19. The basic principles of ethical Islamic finance have solid connections to financial stability and corporate social responsibility within the wide-reaching business context. With the emergence of Financial technology (Fintech) it has provided a missing impetus to the Islamic financial system to compete on equal ground with its conventional counterpart and prove its mettle. The study uses discourse analysis along with the content analysis to extract content and draw a conclusion. The findings of the study indicate that COVID-19 pandemic has provided the opportunity for the social and open innovation to grow and finance world have turned to open innovation to provide a speedy, timely, reliable, and sustainable solution to the world. The findings of the study provide significant implications for governments and policy makers in efficient application of Fintech and innovative Islamic financial services to fight the economic consequences of the COVID-19 pandemic.

Liberalism and Regulation of Financial Market

2012 ◽  
pp. 20-30
Author(s):  
V. Milovidov
Keyword(s):  
Hedge Funds ◽  
Financial Services ◽  
Financial Stability ◽  
Financial Risk ◽  
Risk Hedging ◽  
Rights Protection ◽  
Starting Point ◽  
Derivative Instruments ◽  
Credit Default ◽  
Financial Transactions

Reagan's financial sector deregulation became a starting point for the financial engineering, derivatives, combinatory financial operations industry. Due to it hedge funds developed, and a range of risk financial transactions expanded among the banks that found both new forms of financial risk hedging and new sources of income: arbitrage and hedging, credit default swaps, operations with "second-rate” credits. It was them that exploded the market in 2007–2008. The reaction of states realized in a string of regulation initiatives, including creation of supranational coordination bodies (in particular, Financial Stability Board); reformatting of mega regulators and on their base – the shaping of state prudential supervision and financial services consumer rights protection bodies with different tasks; restrictions on hedge funds activities; toughening of derivative instruments regulation and implementing of a central counterparty institute on derivatives market.

FINANCIAL STABILITY AND FINANCIAL INCLUSION: THE CASE OF SME LENDING

2018 ◽  
Vol 63 (01) ◽  
pp. 111-124 ◽  
Author(s):  
PETER J. MORGAN ◽  
VICTOR PONTINES
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Financial Stability ◽  
Developing Economies ◽  
Empirical Studies ◽  
Bank Lending ◽  
Financial Inclusion ◽  
Nonperforming Loans ◽  
Z Scores ◽  
Negative Impacts

Developing economies are seeking to promote financial inclusion, i.e., greater access to financial services for low-income households and firms. This raises the question of whether greater financial inclusion tends to increase or decrease financial stability. A number of studies have suggested both positive and negative impacts on financial stability, but very few empirical studies have been made. This study focuses on the implications of greater financial inclusion for small and medium-sized enterprises (SMEs) for financial stability. It estimates the effects of measures of the share of bank lending to SMEs on two measures of financial stability — bank nonperforming loans and bank Z scores. We find some evidence that an increased share of lending to SMEs aids financial stability by reducing non-performing loans (NPLs) and the probability of default by financial institutions.

scholarly journals Transformation of digitalization system of business processes at VTB Bank, PJSC

2021 ◽  
Vol 2021 (2) ◽  
pp. 70-79
Author(s):  
Viktoria Valerievna Mandron ◽  
Nikita Sergeevich Budaev ◽  
Alice Aleksandrovna Pototskaya ◽  
Tatiana Nikolaevna Sidorina
Keyword(s):  
Financial Services ◽  
Information Technologies ◽  
Business Models ◽  
Business Processes ◽  
Banking Sector ◽  
Financial Institution ◽  
Block Diagram ◽  
It Architecture ◽  
The People ◽  
Technological Platform

The article is focused on the increasing role of modern information technologies in banking sector. Today, the informatization process includes not only developing a safe and modern infrastructure, networks, data processing centers, but also creating the so-called digital economy on the basis of this infrastructure, which will bring new sources of income to the state and the people. The banking sector of the Russian Federation is most actively involved in the process of solving this problem. The development of automated business processes in VTB Bank (PJSC) is considered in detail. There is presented an overview of the bank's information technologies in such key areas as artificial intelligence, big data analysis, machine learning, virtual and augmented reality, optical recognition, robotics, robotization of process, blockchain, and chat bots. The dynamics of the main indicators of a financial institution activity is analyzed, an assessment of indicators characterizing the dynamics of changes in capital, net profit and profitability of the bank is presented. It has been stated that the strategic directions for the development of business processes in VTB Bank (PJSC) are constructing an advanced operational and technological platform, increasing the level of digitalization of the banking business, leadership in the financial services market in a number of ecosystems, developing a highly productive organization and culture, as well as growing the customer-centricity of business models. The block diagram of the VTB Bank transformation for 2020–2022 and the target version of the IT architecture of the bank have been illustrated. Changes in the IT architecture are one of the stages of the bank's digital transformation strategy. According to the objectives of the strategy of VTB Bank (PJSC), 100% of financial services should become available to customers online.

scholarly journals Towards New Sharia Governance for Islamic Financial Institutions

2021 ◽  
Vol 18 (1) ◽  
pp. 39-58
Author(s):  
Abdulazeem Abozaid
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Financial Institution ◽  
Islamic Banking ◽  
Banking And Finance ◽  
Finance Industry ◽  
Regulatory Authorities ◽  
Governance Model ◽  
Islamic Financial Institutions ◽  
Shariah Governance

Since its inception a few decades ago, the industry of Islamic banking and finance has been regulating itself in terms of Sharia governance. Although some regulatory authorities from within the industry, such as Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and Islamic Financial Services Board (IFSB), the Islamic banking and finance industry remains to a great extent self-regulated. This is because none of the resolutions or the regulatory authorities' standards are binding on the Islamic financial institution except when the institution itself willingly chooses to bind itself by them. Few countries have enforced some Sharia-governance-related regulations on their Islamic banks. However, in most cases, these regulations do not go beyond the requirement to formulate some Sharia controlling bodies, which are practically left to the same operating banks. Furthermore, some of the few existing regulatory authorities' standards and resolutions are conflicted with other resolutions issued by Fiqh academies. The paper addresses those issues by highlighting the shortcomings and then proposing the necessary reforms to help reach effective Shariah governance that would protect the industry from within and help it achieve its goals. The paper concludes by proposing a Shariah governance model that should overcome the challenges addressed in the study.Pada awal berdiri, Lembaga Keuangan Syariah merupakan lembaga keuangan yang menerapkan Hukum Syariah secara mandiri dalam sistem operasionalnya. Ia tidak tunduk pada peraturan lembaga keuangan konvensional, sehingga dapat terus berkomiten dalam menerapkan Hukum Syariah secara benar. Selanjutnya, muncullah beberapa otoritas peraturan yang berasal dari pengembangan Lembaga Keuangan Syariah. Diantaranya adalah Islamic Financial Services Board (IFSB) dan Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). Hal ini tidak menyimpang dari kerangka peraturan Hukum Syariah, sebab standar peraturan dan keputusan yang dikeluarkan ditujukan khusus untuk Lembaga Keuangan Syariah saja. Beberapa Negara telah menerapkan peraturan tata kelola Hukum Syariah pada Bank Syariah mereka. Namun dalam banyak kasus, peraturan yang diterapkan tidak mampu mengontrol Lembaga Keuangan Syariah tersebut secara penuh. Sehingga, secara praktis proses pengawasan diserahkan kepada lembaga keuangan yang beroperasi. Akan tetapi, beberapa standar dan keputusan yang dikeluarkan oleh sebagian pemangku kebijakan bertentangan dengan keputusan yang dikeluarkan oleh beberapa akademi Fiqh. Artikel ini ditulis untuk menyoroti permasalahan yang timbul pada tata kelola Lembaga Keuangan Syariah, khususnya kekurangan yang tampak pada sistem tata kelola. Kemudian, penulis akan mengajukan usulan tentang efektifitas tata kelola Lembaga Keuangan Syariah yang bebas dari permasalahan.

scholarly journals Urgensi DSN-MUI Sebagai Otoritas Pengawas Syariah Lembaga Keuangan Syariah

2020 ◽  
Vol 10 (1) ◽  
pp. 22-38
Author(s):  
Marlisa Elpira ◽  
Marli Candra
Keyword(s):  
Financial Services ◽  
Financial Institution ◽  
Secondary Data ◽  
Financial Service ◽  
Islamic Banks ◽  
Legal Research ◽  
Financial Problems ◽  
Supervision System ◽  
Supervisory System ◽  
The Ideal

The existence of a sektoral supervisory system in the financial service sektors may lead to disagreements in solving financial problems, which resulting in inefficiency of the supervision. The ideal Islamic financial institution Supervision system is not only in the operational institution aspect, but also includes oversight of compliance to apply the Islamic Principles in all of financial activities, which should be an integral part of the Financial Services Authority (OJK). By using the normative legal research with secondary data were analyzed qualitatively, the author conclude that the position of DSN-MUI as an separated institution from the OJK have some weaknesses: disagreement between the agency authority to DSN-MUI in understanding Islamic financial problems, there are some fatwas can not be absorbed in legislations language, the violations of Islamic principles, DPS are being bound to the bank because of salary, and the not-binding DSN-MUI fatwas to Islamic Banks directly.  Therefor, the presence of OJK as an institution Financial services authority must be equipped with a compotent shariah supervisory structure. Key Words: sektoral supervisory system; Islamic principles; the financial services authority.   Abstrak: Adanya sistem pengawasan sektoral di sektor jasa keuangan dapat menyebabkan ketidaksepahaman dalam memecahkan masalah keuangan yang terjadi, yang berakibat kepada ketidakefisienan pengawasan tersebut. Sistem pengawasan lembaga keuangan syariah yang ideal adalah mengawasi kegiatan operasional lembaga keuangan secara umum sekaligus mengawasi kepatuhan menerapkan prinsip Syariah dalam kegiatan tersebut, di mana keduanya harus menjadi satu kesatuan yang tidak terpisahkan dalam otoritas jasa keuangan yang Islami. Dengan menggunakan metode penelitian hukum normatif yang menggunakan data sekunder yang dianalisis secara kualitatif, penulis menyimpulkan bahwa kedudukan DSN-MUI sebagai lembaga yang terlepas dari lembaga otoritas di sektor jasa keuangan memiliki beberapa kelemahan: ketidaksepahaman antara lembaga otoritas dengan DSN dalam memahami masalah di sektor jasa keuangan syariah, terdapat fatwa yang tidak dapat diserap dalam bahasa peraturan perundang-undangan, adanya pelanggaran prinsip syariah, terikatnya DPS dengan bank yang diawasi dengan adanya biaya transportasi yang menjadi beban bank syariah terkait, serta tidak mengikatnya fatwa DSN secara langsung terhadap bank-bank syariah. Oleh karena itu, kehadiran OJK sebagai lembaga otoritas jasa keuangan harus dilengkapi dengan struktur pengawasan syariah yang kompeten.

scholarly journals IDENTIFIKASI PENYEBAB TIDAK OPTIMALNYA PENANGANAN PEMBIAYAAN BERMASALAH DI KSPS BMT ABC CABANG PEMBANTU KLM-SURABAYA

2020 ◽  
Vol 6 (5) ◽  
pp. 913
Author(s):  
Martha Dyah Puspita ◽  
Dian Filianti
Keyword(s):  
Financial Services ◽  
Qualitative Method ◽  
Financial Institution ◽  
Study Strategy ◽  
Exploratory Case Study ◽  
Standard Operating ◽  
Two Factors ◽  
Research Interview ◽  
The Impact

Sharia Financial Services Cooperative (KJKS) is a form of cooperative whose business activities are engaged in financing, investment, and deposits in accordance sharia principles. in relation to financial services in the form of such financing, in this case the Sharia Financial Services Cooperative (KJKS) will be faced with several risks, among others, is the risk of default on financing channeled and the existence of fraud action (fraud) committedby the management of the financial institution. The object of this research is KSPS BMT ABC Branch KLM-Surabaya.on the object of the study found that the total gross NPF until December 2016 reached 81.84%, in addition to the impact of high levels of Gross NPF is a loss to be borne until December 2016 amounted to Rp 354.715.664. Based on the results of pre-research interview with Mr. Muhammad stated that the cause of the loss due to there are two factors namely the existence of fraud (misconduct) in the form of misuse of funds by former employees and handling financing problems that can be optimally 30% of total troubled financing. The purpose of this study is to determine the cause of the non-optimal handling of troubled financing. Things that need to be reviewed in the process of handling pembiyaan problem is based on the phenomenon that occurs in the object of research. This research uses qualitative method with exploratory case study strategy. The results of research conducted by the researchers found that KSPS BMT ABC Branch KLM-Surabaya Assistant has a concept of mixing handling of non-performing financing based on standard operating procedures with the handling of troubled financing based on kinship.Keywords: Troubled Financing, Troubled Financing Handling, Fraud

scholarly journals Analisis Penilaian Kesehatan Keuangan Lembaga Penjamin Dengan Menggunakan Surat Edaran OJK Nomor 18/SEOJK.05/2018

2021 ◽  
Vol 1 (2) ◽  
pp. 475-486
Author(s):  
Anggraeni Novitasari ◽  
Kristianingsih Kristianingsih ◽  
Hasbi Assidiki Mauluddi
Keyword(s):  
Financial Services ◽  
Financial Institution ◽  
Secondary Data ◽  
Ratio Analysis ◽  
Financial Health ◽  
Financial Reports ◽  
Descriptive Research ◽  
Period 2 ◽  
Research Type ◽  
Category Score

This study aims to analyze the financial health of. the Sharia Guarantee Institution for the period 2014 to 2018 using liquidity ratio analysis, Gearing Ratio, and Profitability using analysis techniques of the Health Level of the Guarantee Company Financial Institution based on theIRegulationIof the Financial Services Authority (SAL SEOJK) Number 18 /SEOJK.05/2018. This research is a descriptive research type, which describes the financial performance of PT Asuransi Jamkrindo Syariah and PT Penjaminan Jamkrindo Syariah. The data research method used in this research. is the documentation method. The type of data used in the research is secondary data, which is obtained from the annual financial reports of PT Asuransi Jamkrindo Syariah and PT Penjaminan Jamkrindo Syariah for the period 2014 to 2018. The results obtained in this study are the level of health at PT Asuransi Askrindo Syariah and PT Penjaminan Jamkrindo. This Sharia falls into a fairly healthy category for five years. Whereas for 2014, PT Penjaminan Jamkrindo Syariah received an unhealthy category level. This is supported by the results of research on 1) the gearing ratio of the two companies that received a very poor category for five years period 2) the performance in the liquidity ratio shows that PT Penjaminan Jamkrindo Syariah received a very poor category in the first two years of the period while PT Asuransi Asuransi Askrindo Syariah received very good category value in five years period 3) the profitability ratio of the two companies, PT Penjaminan Jamkrindo Syariah got a pretty good category in 2014 and got a very good category in the following year period, PT Asuransi Askrindo Syariah got a good category score in 2017 while the other period of the year gets very good category.

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