International Standards and Legislation on Resolution Regimes for Large Financial Institutions

2018 ◽  
Vol 15 (2) ◽  
pp. 185-216
Author(s):  
Young Kyung Lee
Keyword(s):  
Financial Institutions ◽  
International Standards

scholarly journals Governance of Vietnam's Financial Institutions in Accordance with International Standards until 2020

2016 ◽  
Vol 23 (01) ◽  
pp. 50-76
Author(s):  
Huong Tram Thi Xuan ◽  
Canh Nguyen Phuc ◽  
Nhu Nguyen Tu
Keyword(s):  
Multiple Regression ◽  
Financial Institutions ◽  
Commercial Banks ◽  
Banking System ◽  
Commercial Banking ◽  
International Standards ◽  
Bank Performance ◽  
Related Factors ◽  
Regression Approach ◽  
Shed Light

In this article, using a combination of risk-related factors, we address the governance of financial institutions, mainly Vietnam’s commercial banks, in light of such international standards as of Basel II and III. Additionally, we employ multiple regression approach to shed light on the effect of each type of risk on bank performance and propose a few recommendations for effectively governing the commercial banking system of Vietnam until 2020.

scholarly journals From Basel I to Basel III

2019 ◽  
Vol 19 (127) ◽  
Author(s):  
Caio Ferreira ◽  
Nigel Jenkinson ◽  
Christopher Wilson
Keyword(s):  
Financial Institutions ◽  
Business Models ◽  
Technical Assistance ◽  
Developing Economies ◽  
Committee Member ◽  
Regulatory Reform ◽  
International Standards ◽  
Banking Supervision ◽  
Financial Systems ◽  
Basel Committee

Developing economies can strengthen their financial systems by implementing the main elements of global regulatory reform. But to build an effective prudential framework, they may need to adapt international standards taking into account the sophistication and size of their financial institutions, the relevance of different financial operations in their market, the granularity of information available and the capacity of their supervisors. Under a proportionate application of the Basel standards, smaller institutions with less complex business models would be subject to a simpler regulatory framework that enhances the resilience of the financial sector without generating disproportionate compliance costs. This paper provides guidance on how non-Basel Committee member countries could incorporate banks’ capital and liquidity standards into their framework. It builds on the experience gained by the authors in the course of their work in providing technical assistance on—and assessing compliance with—international standards in banking supervision.

Politically exposed entities: how to tailor PEP requirements to PEP owned legal entities

2019 ◽  
Vol 22 (2) ◽  
pp. 359-372 ◽  
Author(s):  
Daniele Canestri
Keyword(s):  
Financial Institutions ◽  
Risk Mitigation ◽  
Point Of View ◽  
International Standards ◽  
Due Diligence ◽  
Content Type ◽  
Private And Public ◽  
Political Office ◽  
Private Banking ◽  
Legal Entities

Purpose This paper aims to address the money laundering risk posed by politically exposed person’s (PEP’s) controlled legal entities. International standards and national legislation require enhanced due diligence of political office holders but no specific requirements exist on entities controlled by PEPs. While regulators expect the stringent AML risk mitigation regarding this type of entities, financial institutions have no guidelines to follow. This gap produces inconsistent due diligence measures applied to entities with significant PEPs’ connection. Design/methodology/approach The paper uses comparative analysis to identify discrepancies between legal requirements and their interpretation. Moreover, an empirical approach results in a standardised solution to address these discrepancies. Findings The paper defines the concept of politically exposed entities and the applicable due diligence framework. Anticipating legislative measures, it proposes to introduce this concept via best practices of financial institutions and private banking initiatives such as the Wolfsberg Group. Research limitations/implications The research addresses the topic from a legal point of view. However, the implementation of proposed ideas depends on decisions which are political by nature and are not within the scope of this paper. Practical implications The paper aims at stimulating a debate in both the private and public sector to form a consistent approach to AML due diligence of legal entities associated to PEPs. Originality/value This paper responds to an identified need to study how legal entities connected to PEPs should be defined and monitored.

A Study of the Readiness of Indian Banks to Absorb COVID-19`s Impact Through New Emerging Technologies and Strategies for Competitive Advantage

2021 ◽  
pp. 50-75
Author(s):  
Narinder Kumar Bhasin ◽  
Kamal Gulati
Keyword(s):  
Competitive Advantage ◽  
Financial Institutions ◽  
Business Models ◽  
International Standards ◽  
Indian Economy ◽  
Emerging Trends ◽  
Reserve Bank ◽  
New Business ◽  
The Government ◽  
Indian Banks

Digital disruptions and e-collaboration between banks, corporates, and fintech companies are increasing to meet the new challenges posed by COVID-19 across the globe. The Indian economy and the financial ecosystem is undergoing a transformation with the number of reforms introduced by the Government of India and Reserve Bank of India in the last few years. Emerging trends in the Indian economy with new business models being adopted by the banks and financial institutions leading the country to the international standards of the payment system. This chapter focus on the pre-COVID reforms and their impact on banking and finance sector post-COVID 19 in the Indian Economy. The author explains the readiness of Indian banks to meet the challenges and the new emerging technology-based business model being adopted by banks and financial institutions in re-strategizing their operations and have a competitive advantage in the market.

scholarly journals ISO standards a potential path for emerging markets: An initial literature review

2011 ◽  
Vol 1 (4) ◽  
pp. 65-71
Author(s):  
Edmund R. Lizarzaburu ◽  
Julio Quispe Salquero
Keyword(s):  
Corporate Governance ◽  
Literature Review ◽  
Emerging Markets ◽  
Financial Institutions ◽  
International Market ◽  
International Standards ◽  
Internal Standards ◽  
Iso Standards

Nowadays, the companies and financial institutions from emerging markets are looking forward for more space in the international market. They have found several alternatives and one of them is to implement process and procedures in order to be more efficient and offer better conditions to the local and foreign customers. One of these alternatives is to implement internal standards not only following corporate governance policies but also, implementing international standards such as ISO norms. This paper seeks to show the evolution of initial ISOs most frequently used in the financial emerging markets.

scholarly journals Conceptual Aspects of Development Banks

2018 ◽  
Vol 7 (4.38) ◽  
pp. 1098
Author(s):  
Galina Alekseevna Bunich ◽  
Yuriy Aleksandrovich Rovenskiy ◽  
Julia Tambievna Akhvlediani ◽  
Elena Anatolievna Zvonova
Keyword(s):  
Financial Institutions ◽  
International Standards ◽  
Transport Systems ◽  
World Bank Group ◽  
Infrastructure Development ◽  
Regional Economies ◽  
Development Banks ◽  
Bank Group ◽  
National Economies ◽  
New Phase

The development of national and regional economies in the conditions of financial and economic instability determines special conditions for the formation of financial resources.The innovative improvement of national economies of developing countries has substantiated active evolvement of financial institutions such as development banks.The formation and evolvement of development banks is going through a new phase. These are not the financial institutions that were formed by the metropolis countries after the collapse of the colonial system. They have different mission, goals, principles, methods and instruments.Modern development banks prioritize the issues of financing socio-economic projects, crediting traditional sectors of the economic activity, and, above all, the infrastructure development of regions, the construction of transport systems, and energy supply. Today one of the most important areas of the development banks’ credit activity is the formation of a loan portfolio for small and medium-sized businesses.With all the diversity of development banks substantiated by historical and economic characteristics of countries and regions, the UNO and the World Bank Group distinguish common features, principles and peculiarities. These peculiarities and unique functions of development banks are found in international standards that define a special status of development banks as financial institutions. 

scholarly journals TRENDS IN THE DEVELOPMENT OF FOREIGN PORTFOLIO INVESTMENTS IN UKRAINE

2021 ◽  
Vol 1 (30) ◽  
Author(s):  
Oleksandr A. Zadoia ◽  
◽  
Valerii S. Fomenko ◽  
Keyword(s):  
Stock Market ◽  
Financial Institutions ◽  
Direct Investment ◽  
International Standards ◽  
Portfolio Investment ◽  
Real Sector ◽  
Investment Activity ◽  
The Real ◽  
Investment Process ◽  
Portfolio Investments

The paper reviews the processes of direct and portfolio investment, outlines the differences and the main directions of implementation of ways to achieve economic goals using these tools at both international and national levels. The arguments and reasons for the growing popularity of portfolio investing in the modern world are given, given the wider range of sources of primary information on the state of the stock market in global trading platforms and the ever-increasing tools for managing investors’ assets. Based on the systematization of the work of foreign and domestic scientists, the assessment of the role of investment activity in the formation and further successful development of the national economy is given. Taking into account the experience of developed countries, the need to develop the stock market of Ukraine, identify problems and, taking into account the specifics of the domestic economic and geopolitical space, proposed effective steps to improve the investment climate in our country. In order to detail and classify possible areas of investment activity, the study analyzes the types of investment instruments and identifies their likely target use in modern realities. The analysis of investment activity of Ukraine in the period 2014-2020 provided an opportunity to find out the main trends in the dynamics of changes in direct and portfolio investment. From the point of view of the root causes of the low level of investment activity in this period, gaps in the legislation, the presence of corruption schemes, inconsistencies in the strategies of regulatory financial institutions, a large share of the shadow economy, military action in industrial regions were highlighted. Therefore, despite the high level of return on capital in Ukraine, our country has found itself on the sidelines of global investment flows. The study of the ratio of direct and portfolio investments and their dynamics shows a certain pattern. First, Ukraine is characterized by a constant excess of direct investment over portfolio investment. Secondly, the gap between these types of international capital movements in our country is narrowing due to the increase in portfolio investment. This situation makes it possible to state the invariability of the negative level of investment attractiveness of the domestic economy in the real sector, and the problems of economic imbalance are covered by external borrowing through the use of one of the portfolio instruments, namely placement of foreign and domestic government bonds. The main emphasis is on the inadmissibility of such a state of affairs, which makes it possible only temporarily to maintain Ukraine’s economy in a stable state. A review of the dynamics of the country’s debt growth and the decline in the competitiveness of domestic production in the context of a very high degree of depreciation of production capacity, only confirms the need for urgent measures to stimulate the process of direct investment. Regarding the development of the portfolio investment process, it is proposed to bring the regulatory framework to international standards in the first place. Combining the stimulation of direct investment, especially in the real sector of the economy, in the presence of relevant laws and financial institutions, inevitably revival in the stock market, which in turn will change the structure of portfolio investment in Ukraine. The opinion also expresses the need to take into account the external effects of the investment process, namely to pay attention to increasing the indicators of inclusive economic development.

scholarly journals Ten Years of the Global Reform of Financial Regulation: What is ahead?

2019 ◽  
Vol 12 (5) ◽  
pp. 91-113 ◽  
Author(s):  
L. S. Khudyakova
Keyword(s):  
Financial Institutions ◽  
Financial Stability ◽  
Financial Regulation ◽  
Global Financial Crisis ◽  
International Standards ◽  
Regulatory Standards ◽  
Regulatory Bodies ◽  
New Challenges ◽  
Financial Regulatory ◽  
Institutional Mechanism

Global financial crisis of 2008–2009 demonstrated the need for reforms in the system of financial regulation. An institutional mechanism was created under the auspices of the G20 with the purpose to implement a global reform. In the article results of the postcrisis global financial reform are analysed in contingent with review of the evolution of institutional mechanism, which specifics often determined success or its absence in particular directions of the reform. The author selects and reviews three main periods of development of the global financial regulation’s institutional mechanism. In the initial period – the first years after the crisis works were progressing in two directions simultaneously: a) co-ordination of activities of national financial regulatory bodies in coping with the crisis processes and neutralization of its consequences; b) development and reconciliation of major global standards of financial regulation. We can consider that period as successful because crisis processes were overcame in relatively short time, trade and currency wars were also avoided and at the same time international regulatory standards were widely agreed.The second period according to the author’s classification (approx. 2012–2015) – transmission to the implementation of agreed international standards at the national and supranational (EC) levels. That time a range of difficulties and contradictions between leading countries revealed. First of all these problems related to the spheres where the regulations of transnational activities of financial institutions had to be agreed. As the author shows exactly in that time a problem of the so-called asymmetrical sovereignty in the financial policy aggravated.The third period is continuing in the present time. During this period, from the one side, the global financial regulation expands its coverage according to emergence of new challenges, but from the other side the interest to the reform is being loosing and the trend to increase of the independence of the national financial regulators is expanding. So the threat to fragmentation of the international financial markets and revision of already agreed regulatory standards became not illusive.Special attention in the article was paid to analysis of the problem of regulating the shadow banking or non-bank financial intermediation (NBFI), which are till now largely outside of the regulatory mandate of the governance bodies. Rapid growth of transactions by the latter, according to the author’s opinion, is a threat to the global financial stability especially taking into account such factors as its close interconnectedness with traditional financial institutions (banks), exposure to the bank-like risks, the wide implementation of financial innovations for making new unregulated products.Investigating new challenges beyond the perimeter of the post-crisis reform the author came to the conclusion that implementation of financial technologies as well as the necessity to take into account ecological and social factors require serious transformation of the global financial system as well as it’s regulation. Taking into account the global nature of new challenges the need for international co-operation of financial regulatory bodies will be continued.

Social Risk Management as a Response to Increasing International Pressure for Social Performance

2021 ◽  
Author(s):  
J. D. Borbor ◽  
Katinka C. Van Cranenburgh ◽  
Christiaan W. F. Luca
Keyword(s):  
Risk Management ◽  
Financial Institutions ◽  
Industrial Revolution ◽  
Oil Spills ◽  
Social Performance ◽  
The United States ◽  
International Standards ◽  
Social Risk ◽  
International Pressure ◽  
Development Framework

Abstract In the past decades, financial institutions have led the way for companies to adhere to international standards for social performance. The journey began in the Industrial Revolution, when negative societal business impacts rapidly escalated, which led people to demand for their management. Initially focused on working conditions, impacts on the environment soon started to gain notice. Halfway through the 20th century, a combination of oil spills and mass media attention generated enough public pressure for the United States to sign the first piece of legislation requiring the environmental impact assessment. With this law and its replication abroad, however, came the concern with social impacts as well. Both environmental and social performance expectations soon spread internationally and, by the 1980s, multilateral financial institutions, most prominently the World Bank, incorporated such considerations into their investment and lending practices, which is the source of all such international standards today. These standards require the establishment of a social management system to integrate risk and impact management processes and stakeholder engagement activities. Given the challenge of implementing these requirements, a social risk management development framework is proposed to bring together the extensive and multidisciplinary demands of effective social performance. Five development areas are proposed: governance, social policy, tools, resourcing and capacity, and knowledge sharing. This is an important step to take today as it is expected that the next decades will see these international demands increase, possibly by ever increasing governmental regulation.

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