scholarly journals The Politics of Regulatory Convergence and Divergence

2020 ◽  
pp. 68-102
Author(s):  
Emily Jones
Keyword(s):  
Financial Services ◽  
Business Models ◽  
Analytical Framework ◽  
International Standards ◽  
Local Context ◽  
International Banking ◽  
Financial Policies ◽  
Convergence And Divergence ◽  
Domestic Banks ◽  
Regulatory Convergence

This chapter sets out an analytical framework that explains why regulators in peripheral developing countries respond in different ways to international banking standards. It identifies four factors that generate incentives for convergence on international standards: politicians seeking to integrate their countries into global finance and expand financial services sectors; domestic banks looking to enhance their reputation as they expand into international markets; regulators with strong connections to peer regulators and transnational policy networks; and sustained engagement with the IMF and World Bank. It also identifies four factors that generate incentives for divergence: politicians pursuing interventionist financial policies; politicians and business oligarchs using banks to direct credit to political allies; regulators who are sceptical about the applicability of Basel standards for their local context; and banks with business models focused on the domestic market for whom there are high costs and few benefits. The chapter identifies specific pathways to regulatory convergence and divergence, and salient features of each.

scholarly journals Ethiopia

2020 ◽  
pp. 327-348
Author(s):  
Toni Weis
Keyword(s):  
Banking Sector ◽  
Basel Ii ◽  
International Standards ◽  
Financial Industry ◽  
Financial Repression ◽  
Asian Tiger ◽  
National Bank ◽  
Ethiopian Government ◽  
Domestic Banks ◽  
Regulatory Convergence

Ethiopia has chosen to diverge from international standards and not to adopt any aspect of Basel II or III. Ethiopia has the least internationalized banking sector among our case countries. Despite significant exposure to the Basel standards through donors and the IMF, banking supervisors at the National Bank of Ethiopia (NBE) have little use for Basel II and III. Ethiopia’s decision to diverge from the international Basel framework results from a strong preference for political control over the financial industry. The Ethiopian government seeks to emulate the example of East Asian ‘tiger’ economies, for whom financial repression was a key tool in the pursuit of rapid industrialization. However, as Ethiopia’s domestic banks struggle to sustain transformative growth, pressures for greater financial openness (and, by extension, for increased regulatory convergence) are beginning to mount.

scholarly journals Conclusion

2020 ◽  
pp. 351-376
Author(s):  
Emily Jones
Keyword(s):  
Developing Countries ◽  
Case Studies ◽  
Global Economy ◽  
International Standards ◽  
Local Context ◽  
Future Research ◽  
Policy Recommendations ◽  
Financial Policies ◽  
Policy Ideas

This chapter distils key findings from the case studies, highlights areas for further research, and makes a series of policy recommendations. Overall the case studies provide compelling evidence of the powerful reputational, competitive, and functional incentives generated by financial globalization that lead regulators to adopt international standards. They also show that some domestic political economy dynamics generate incentives to diverge from international standards, particularly interventionist financial policies, political lending, and regulators sceptical about the appropriateness of international standards for their local context. Our findings speak to wider debates in the literature, including over the agency of actors from peripheral developing countries in the global economy; the importance of policy ideas such as the role of the financial sector, in economic development; and the inner workings of bureaucracies in developing countries. We highlight areas for future research and make policy recommendations on how to reform international standards to better reflect the interests of peripheral developing countries.

Impacts of Financial Integration in the Asia Economic Community on Competitiveness of the Commercial Banks in Vietnam

2018 ◽  
Vol 34 (4) ◽  
Author(s):  
Nguyen Cam Nhung
Keyword(s):  
Financial Services ◽  
Commercial Banks ◽  
Financial Integration ◽  
International Standards ◽  
Capital Adequacy ◽  
Viet Nam ◽  
Economic Community ◽  
Industrial Policies ◽  
Capital Adequacy Ratio ◽  
Internet Economy

This paper assesses the impacts of financial integration in the Asia Economic Community (AEC) on the capacity of finance and provision of financial services of Vietnamese commercial banks. In recent years, Vietnamese commercial banks have achieved some successes as reflected in the growth indicators of operation scales, charter capital and total assets. However, under the pressure of integration, the capital adequacy ratio (CAR) fell slightly in 2016 resulting from the applying of the CAR calculation method to commercial banks in accordance with the new regulations towards step by step approaching international standards. Compared to other countries in the AEC, the capacity of finance and provision of financial services of the Vietnamese commercial banks remains low. As a result, it is necessary to carry out synchronous and drastic measures in the coming time to enhance the competitiveness of the Vietnamese commercial banks. Keywords Competitiveness, financial integration, AEC, commercial bank, Vietnam References [1] UNCTAD, World Investment Report 2018: Investment and New Industrial Policies, June 2018.[2] Cục Đầu tư nước ngoài, “Tình hình thu hút Đầu tư nước ngoài 8 tháng năm 2018”, 2018, http://fia.mpi.gov.vn/tinbai/6045/Tinh-hinh-thu-hut-Dau-tu-nuoc-ngoai-8-thang-nam-2018.[3] Google and Temasek, “e-Conomy SEA Spotlight 2017: Unprecedented growth for Southeast Asia’s $50B internet economy, 2017”, 2017.[4] Tô Thị Thanh Trúc, “Khu vực tài chính Việt Nam trong bối cảnh hội nhập tài chính ASEAN”, Tạp chí Phát triển Khoa học và Công nghệ, 19 (2016) Q1, 2016.[5] Phạm Xuân Hoan, Nguyễn Cẩm Nhung, Nguyễn Bích Thủy, “Ngân hàng TMCP Ngoại thương Việt Nam: Chủ động đón AEC”, Tạp chí Kinh tế và Dự báo, Số 2 tháng 1/2016.[6] Phạm Xuân Hoan, Nguyễn Cẩm Nhung, Nguyễn Bích Thủy, “Khả năng thích ứng của các ngân hàng thương mại Việt Nam khi tham gia hội nhập AEC”, Tạp chí Tài chính, Kỳ 1 tháng 12/2015 (622).[7] Trần Thị Vân Anh, “Ngân hàng Việt Nam trong tiến trình gia nhập Cộng đồng Kinh tế ASEAN”, Tạp chí Khoa học Xã hội Việt Nam, 4 (2016) 101.[8] Nguyễn Thị Diễm Hiền, “Một số vấn đề về ngân hàng thương mại khi Việt Nam gia nhập Cộng đồng Kinh tế Asean”, Tạp chí Phát triển Khoa học và Công nghệ, 19 (2016) Q1, 2016.[9] Blattner N., “Competitiveness of Banks”, Journal of Financial Economics, N.21 (1992).[10] PwC Growth Markets Centre, The Future of ASEAN - Time to Act Financial Services, 2018.

scholarly journals Financial technology and the future of banking

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Daniel Broby
Keyword(s):  
Financial Services ◽  
Empirical Investigation ◽  
Analytical Framework ◽  
Shadow Banking ◽  
Customer Acquisition ◽  
Market Participants ◽  
Digital World ◽  
The Future ◽  
Technology Applications ◽  
Financial Technology

AbstractThis paper presents an analytical framework that describes the business model of banks. It draws on the classical theory of banking and the literature on digital transformation. It provides an explanation for existing trends and, by extending the theory of the banking firm, it illustrates how financial intermediation will be impacted by innovative financial technology applications. It further reviews the options that established banks will have to consider in order to mitigate the threat to their profitability. Deposit taking and lending are considered in the context of the challenge made from shadow banking and the all-digital banks. The paper contributes to an understanding of the future of banking, providing a framework for scholarly empirical investigation. In the discussion, four possible strategies are proposed for market participants, (1) customer retention, (2) customer acquisition, (3) banking as a service and (4) social media payment platforms. It is concluded that, in an increasingly digital world, trust will remain at the core of banking. That said, liquidity transformation will still have an important role to play. The nature of banking and financial services, however, will change dramatically.

scholarly journals Customers’ Intentions to Switch to Internet-Only Banks: Perspective of the Push-Pull-Mooring Model

2021 ◽  
Vol 13 (14) ◽  
pp. 8062
Author(s):  
Cheolho Yoon ◽  
Dongsup Lim
Keyword(s):  
Financial Services ◽  
Structural Equation ◽  
Information Technologies ◽  
Business Models ◽  
Internet Banking ◽  
Equation Modeling ◽  
Research Model ◽  
Financial Industry ◽  
Banking Services ◽  
New Business

The advent of fintech is blowing a new wind into the financial industry. New business models have been created and consumers’ access to financial services is higher than ever. Internet-only banks based on advanced information technologies have emerged as a leader in the fintech industry, and these banks are fiercely competing with large banks using internet banking as a weapon to attract new customers. The purpose of this study is to explore the factors that influence customers’ intention to switch to internet-only banking services from traditional internet banking services in Korea. To this end, a research model was developed based on the push-pull-mooring model (PPM), which is a migration theory. The research model was analyzed using partial least squares structural equation modeling (PLS-SEM). The findings will provide the practitioners of the new internet-only bank with strategic guidance for attracting new customers and help practitioners of traditional banks to retain current customers.

How do policy transfer mechanisms influence policy outcomes in the context of authoritarianism in Vietnam?

2022 ◽  
Author(s):  
Hang Duong
Keyword(s):  
Best Practices ◽  
Policy Change ◽  
Analytical Framework ◽  
Policy Transfer ◽  
Policy Outcomes ◽  
National Context ◽  
Political Actors ◽  
Authoritarian State ◽  
Convergence And Divergence ◽  
Transfer Mechanisms

The literature on policy transfer shows that it may result in simultaneous policy convergence and policy divergence. However, little is known about how such results happen when transferring from multiple and possibly contrasting sources. This study finds that civil service reforms in Vietnam’s merit-based policies are influenced by both western and Asian models of meritocracy. This makes them both closer to universal ‘best practices’ and at the same time sharpens the distinctiveness of Vietnam’s policy. The calculations of political actors in combination with the context of a one-party authoritarian state have led to policy transfer through mechanisms of translation and assemblage which brings about a hybrid of convergence and divergence. This study enhances understanding of policy transfer in the context of Asian authoritarianism. In finding hybridity in transfer outcomes in this national context, the article shows the uniqueness of resultant policy change and develops an analytical framework for the influence of policy transfer on policy outcomes.

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 ROLE OF TECHNOLOGY IN FINANCIAL INCLUSION IN INDIA

2021 ◽  
pp. 1-5
Author(s):  
Arun.K.V
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Business Models ◽  
Formal System ◽  
Financial Inclusion ◽  
Handheld Devices ◽  
Mobile Banking ◽  
Major Step ◽  
Banking Business

Technology and financial inclusion are the popular coinage in banking parleys in the country. While technological upgradation and mobile banking are catching up so fast, financial inclusion is tardy. Financial inclusion is a major agenda for the Reserve Bank of India (RBI). Without financial inclusion, banks cannot reach the un-banked. It is also a major step towards increasing savings and achieving balanced growth. The reach the country is having with technological progress mobile banking has the potential to emerge as a game changer in terms of costs, convenience, and speed of reach. Business models of banks, telecom operators and other stakeholders need to converge. However, the banking industry’s penetration to un-banked areas is still found sluggish. The role of the Indian banker is challenging. At one end of this spectrum lies the demand to achieve financial inclusion as nearly 50 per cent of the population is yet to be covered under the formal system of banking and at the other end lies the task to fulfil the needs of the existing customers. The first priority for banks is to adopt core banking solution (CBS), including all regional rural banks (RRBs). Next, a multi-channel approach using handheld devices, mobiles, cards, micro-ATMs, branches and kiosks can be used. However, it should be ensured that the transactions put through such front-end devices should be seamlessly integrated with the banks’ CBS. In rural areas, where accessibility is a problem, banks are using the microfinance network and business correspondents and facilitators to bring more people under the ambit of banking services. Capitalising on the huge untapped potential in smaller towns and cities and rendering financial services to this segment of people poses a big challenge. Few banks have explored technology solutions to increase the scale of their microfinance portfolios, with the use of smart cards and core banking solutions. KEYWORDS- Technology, Financial Inclusion, Core Banking, Business Correspondents

scholarly journals Digitalization of Financial Services in Albania Under Restricted Measures Covid-19

2020 ◽  
Vol 3 (2) ◽  
pp. 17
Author(s):  
Rezana Balla
Keyword(s):  
Financial Services ◽  
Business Models ◽  
Legal Framework ◽  
Financial Industry ◽  
Technology Innovations ◽  
Markets And Institutions ◽  
New Business ◽  
Job Challenges ◽  
Digital Transactions ◽  
Financial Technology

Under the restricted measures due to the global pandemic Covid-19, like all other services, financial services had difficulties in performing their financial activities. These difficulties are stronger at countries where financial services are denied for a long time. Financial services denial is an issue that has affected not only Albania but small Balkan countries as well. The reasons for this denial are many, but among them we can distinguish the lack of credit experience, as one of the common reasons to be excluded in these countries from the development of the financial sector. Currently, one of the reasons for the financial denial is the emergency created by Covid-19, where physical distancing and other measures taken by governments to restrict movement and services make financial service impossible. Thus, one of the most effective ways to perform financial services remotely is financial technology. Financial technology refers to the possibilities of financial innovation through technology that can result in new business models, applications, processes, or products with an effectiveness related to financial markets and institutions and the provision of financial services. This paper aims to present the challenges of the legal framework and regulatory institutions, to provide recommendations for its improvement, to enable the development of financial technology in the financial market in Albania. The paper address issues such as the Bank of Albania's consideration on the Directive (EU) 2015/2366 On Payment Services (PSD II). What benefits or challenges would its implementation bring? How is the financial industry projected after the implementation of PSD II? What are the biggest job challenges with payment institutions that have not been to the market before or that bring technology innovations? The paper addresses the issue of money laundering through online digital transactions as well.

Managing adaptive orientation systems for museum visitors from an IoT perspective

2016 ◽  
Vol 22 (2) ◽  
Author(s):  
Ludovico Solima ◽  
Maria Rosaria Della Peruta ◽  
Vincenzo Maggioni
Keyword(s):  
Design Methodology ◽  
Business Models ◽  
Communication Technologies ◽  
Analytical Framework ◽  
Digital Data ◽  
Museum Visitors ◽  
Scientific Staff ◽  
Starting Point ◽  
Potential Demand ◽  
Orientation Systems

Purpose Starting from the premises that IoT applications can be used in museums as an aid to visiting systems, the aim of this research is to see how recommendation systems can be developed to provide advanced services to museum visitors. Design/methodology/approach The research methodology employs a qualitative exploratory multi-case study: the method used has consisted in crossing the information currently known on the most advanced communication technologies (ICT) with the requirements of enhancing museum services, in order to determine the possible trajectories of applying the former to the latter Findings The implementation of recommender system outlines the main implications and effects of an advanced market-driven digital orientation, as the system’s users are the starting point for innovation and the creation of value. For a museum, it will be possible to access to an additional system of knowledge alongside that of its scientific staff. This process has profound implications in the way in which a museum presents itself and how it is perceived by its visitors and, in a wider sense, by the potential demand. Research limitations/implications Our paper consists in an exploratory effort to introduce an analytical framework for an evolved adaptive museum orientation system; the empirical investigation can be structured in the inductive-predictive view of assessing this promising debate further. Originality/value Implementing the IoT blueprint entails introducing a plethora of new products, services and business models, opening new routes to guide and direct cultural events. Now, more than ever, sustainable development involves an intrinsic balancing act between the pluralism of data and that of customer needs, which is achieved through the elaboration of digital data.

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