STRATEGIES OF DEVELOPMENT OF THE FINANCIAL SECTOR AND FINANCIAL INDUSTRY IN UKRAINE ON AN INNOVATIVE BASIS

2018 ◽  
Author(s):  
Olga Batrak ◽  
Keyword(s):  
Financial Institutions ◽  
Financial Literacy ◽  
Financial Stability ◽  
Service Providers ◽  
Financial Sector ◽  
Added Value ◽  
Financial Resources ◽  
Creative Economy ◽  
Financial Industry ◽  
Investment Funds

The relevance of the article is determined by the need to balance certain segments of the financial and real sectors of the economy, build their infrastructure, increase innovation through the implementation of the achievements of the financial industry. The main scientific result of the article is to define the financial sector and the financial industry, to establish causal links between them and development strategies. The financial sector is a subsystem of the financial market and is represented by its national regulator, financial and infrastructural participants, namely: corporations that accept deposits; money market funds and investment funds, pension funds, insurance corporations, captive and auxiliary financial corporations, other financial intermediaries. In contrast to the existing definitions, the proposed one is based on the classification of institutional sectors of the Ukrainian economy. The connection between the financial and real sectors is formalized as mutually complementary parts, which together make up the national economy, ensure the circulation of material and financial resources, the creation of added value. At the same time, they perform specific functions: the financial sector - distribution and transaction, the real - generating and transforming. The financial industry is a complex category that combines a set of financial institutions with their quality and technical and technological characteristics (intellectual capital, innovation, financial technology) in a creative economy. The financial sector and the financial industry reflect the dualistic nature of the functioning of financial institutions as financial service providers, on the one hand, and business process owners, on the other. Therefore, their strategies have a common premise and goal - financial stability, macroeconomic development should ensure the sustainability of public finances, the formation of long-term financial resources, lending to the economy. The common strategic goals are: financial inclusion, supported by digital and financial literacy, development of financial markets and non-cash economy, innovative development and economic system based on financial technologies.

FINANCIAL LITERACY AND FINANCIAL INCLUSION EFFECTS ON STABILITY AND COMPETITIVENESS INDICATORS IN THE BANKING SECTOR: CROSS COUNTRY EVIDENCE FOR AFRICA AND THE WORLD

2021 ◽  
pp. 2150009
Author(s):  
JOÃO JUNGO ◽  
MARA MADALENO ◽  
ANABELA BOTELHO
Keyword(s):  
Credit Risk ◽  
Interest Rates ◽  
Financial Institutions ◽  
Financial Literacy ◽  
Financial Stability ◽  
Banking Sector ◽  
Financial Education ◽  
Financial Inclusion ◽  
The Stability ◽  
The Impact

Financial inclusion has allowed financial products with very high-interest rates and complex conditions to become increasingly affordable. Financial inclusion programs, which aim to reach all social strata, strongly expose financial institutions to risk and particularly credit risk. That said, additional interventions such as financial education of those included are needed. We aim to examine the impact of financial literacy and financial inclusion of households on bank performance. Specifically, we want to examine the impact of financial literacy on credit risk, competitiveness among banks and financial stability. The FGLS estimation results suggest that financial literacy and financial inclusion reduce credit risk and enhance the stability of banks, and regarding competitiveness, our results were inconclusive as they show different effects for each competitiveness indicator, although they point to improved competitiveness in some cases. This research allows policymakers to understand that individual financial attitudes can be reflected in the general welfare of financial institutions and encourages the intensification of programs aimed at improving household financial literacy.

Knowledge Risks of Social Media in the Financial Industry

2015 ◽  
Vol 11 (4) ◽  
pp. 19-34 ◽  
Author(s):  
Christina Sarigianni ◽  
Stefan Thalmann ◽  
Markus Manhart
Keyword(s):  
Social Media ◽  
Competitive Advantage ◽  
Financial Institutions ◽  
Financial Sector ◽  
Organizational Environment ◽  
Financial Industry ◽  
Competitive Edge ◽  
Knowledge Leakage ◽  
Knowledge Intensive ◽  
Use Of Social Media

The financial sector is characterized as knowledge intensive with knowledge as the key source of competitive advantage. The introduction of social media within the organizational environment has raised the number of knowledge risks that can lead to knowledge leakage and thus to a loss of competitive edge. The authors investigated knowledge risks arising from the use of social media within the financial sector. They interviewed twelve employees from ten different European financial institutions to identify strategies how financial institutions currently deal with knowledge risks. The authors identified three major knowledge risks induced by social media and it appears that financial institutions are skeptical towards social media adoption. However, competition forces financial institutions to adopt social media and to change their attitude. As a consequence, financial institutions need to find different strategies for the management of knowledge risks. The authors identified such strategies and they show which strategies link to the major knowledge risks.

scholarly journals The International Dimension of EMU: The Interplay Between the Global Financial Stability Architecture and the European Union

2020 ◽  
Author(s):  
Shawn Donnelly ◽  
Ramses Wessel
Keyword(s):  
European Union ◽  
Financial Institutions ◽  
Financial Stability ◽  
Service Providers ◽  
European Court Of Justice ◽  
External Influence ◽  
The European Union ◽  
Primary Method ◽  
European Court ◽  
The Eu

It is a truism that the European Union’s self-proclaimed autonomy may be a helpful concept in legal terms–primary to preserve the monopoly of the European Court of Justice to interpret European Union (EU) law–but it is equally clear that the EU is to a large extent influenced by the decisions and policies of other international institutions. The present chapter aims to assess this external influence in relation to a specific, but core dimension of the EU, the Economic and Monetary Union (EMU). More specifically, we will assess the influence of what these days is known as the Global Financial Stability Architecture (GFSA), on the EMU. As will be further explained below, the GFSA is a network of the key global financial institutions that collect data, conduct research, provide insight and propose rules of conduct for the financial sector. Its mission is to rethink (global) macroeconomic policy to make economies more resilient–how to steer the economy clear of risks that could lead it to collapse; how to deal with real-time crises; and how to initiate recovery. Its primary method is to find out how differing components of financial markets act and react to one another, and to propose prudential regulation that shapes the behaviour of private financial service providers, of governments and of central banks.

scholarly journals FINANCIAL MARKET OF UKRAINE - A MODERN LOOK AT THE ESSENCE OF THE CONCEPT

2019 ◽  
pp. 13-20
Author(s):  
I. Blahun
Keyword(s):  
Financial Market ◽  
Financial Institutions ◽  
Financial Services ◽  
Basic Function ◽  
Insurance Companies ◽  
Financial Resources ◽  
Financial Intermediaries ◽  
Financial Instruments ◽  
Investment Funds ◽  
The Impact

The article presents a modern view of understanding of "financial market" concept, as the development of financial technologies gradually influences the change of paradigm of its functioning, new financial institutions, institutions of market infrastructure, financial instruments are emerging, as well as the development of forms of alternative financing. On the base of the systematization, it is determined that the term "financial market" in the current scientific literature is considered from three positions, first as a mechanism of distribution of financial resources, secondly, as a system of economic relations, and thirdly as a set of markets and institutions. As a result of the research on the contrary to the popular opinion that the financial services market and the financial market are two separate markets, it has been substantiated that the financial services market is a part of the financial market, because financial instruments are formed through the provision of financial services. The financial market and the market of financial services have common subjects - financial intermediaries (banks, insurance companies, non-government pension funds, investment funds, etc.), but at the same time the objects of these two markets are different. Financial instruments are objects for financial markets, and services – for the market of financial services. Through the process of financial services providing, financial intermediaries ensure the fulfilment of the basic function of the financial market, which is the redistribution of financial resources in the economy, thereby creating financial assets, liabilities, etc., which is the basis for the formation of financial instruments. Taking into account of the impact of fintech on the development of the financial market, author's definition was presented in this work as a system of financial institutions (market subjects), which create the conditions for transactions with financial instruments of economic agents (market objects) using appropriate infrastructure and financial technologies. Transfer of flows of financial resources in the economy at national, subnational and global levels, adequate assess of financial risks and ability to absorb exogenous and endogenous shocks were determined as a purpose of the functioning of the financial market. Keywords: fintech, financial instruments, financial institutions, financial services market, financial system, financial services..

scholarly journals Fifth Harvard University Forum Islamic Finance

2002 ◽  
Vol 19 (3) ◽  
pp. 156-162
Author(s):  
Zaid AJbarzinji
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Service Providers ◽  
Middle Eastern ◽  
Professor Emeritus ◽  
Islamic Finance ◽  
Development Bank ◽  
Financial Industry ◽  
Finance Industry ◽  
Past Experiences

Each year, the Harvard Islamic Finance Information Program (HIFIP) of the Center for Middle Eastern Studies organizes this forum. This year's forum had an international flavor, thanks to participants from Malaysia, South Africa, the Middle East, and Europe. Participants were mainly finance industry representatives from the Islamic Development Bank, the Kuwait Finance House, HSBC Amanah Finance, the Dow Jones Islamic Index, Bank Indonesia, Freddie Mac, and others. In addition, several experts in Islamic economics and finance, such as Monzer Kahf, M. Nejatullah Siddiqi, Nizam Yaquby, and Frank E. Vogel participated. Many other participants sought to educate themselves about the principles of Islamic finance and the availability of lslamically approved financial products. Overall, the forum was more of an opportunity for those interested in Islamic finance to meet each other, network, and present some of their latest lslamically approved financial instruments and contracts. The forum fea­tured a few research papers and many case studies. Most presentations and panel discussions focused on current and past experiences in the Islamic finance industry, challenges facing the development of new financial instru­ments, effective marketing and delivery of products to end-users, and areas where applying jjtihad is most needed and promising. Participants also dis­cussed the need to develop relevant financial institutions to strengthen the stability and perfonnance of Islamic financial service providers ( e.g., man­aging liquidity and risk). Thomas Mullins, HIFIP's executive director, welcomed the guests. He stressed the Islamic finance industry's important role in creating a dialogue between I slam and the West - a role made especially relevant after Septem­ber 11. Forum chairperson Samuel Hayes, Jacob Schiff Professor Emeritus at Harvard Business School, used his opening remarks to commend the industry on its many accomplishments during the past decade and outlined areas for improvement. In his introduction, Saif Shah Mohammed, presi­dent of the Harvard Islamic Society, suggested that the industry should prer vide relevant services to students, such as Shari'ah-compliant educational loans and young professional programs. Ahmad Mohamed Ali, president of the Islamic Development Bank (IDB), delivered the keynote address: "The Emerging Islamic Financial Architecture: The Way Ahead." He discussed the infrastructure required to strengthen the Islamic financial industry, which is in a process of evolution. Some recent major initiatives include the Accounting and Auditing Organ­ization for Islamic Financial Institutions, the Islamic Financial Services Organization, an international Islamic financial market with a liquidity management center, and an Islamic rating agency. Currently, there are ...

scholarly journals Impact of Legal Incentives on “Credit Fraud” Criminal Offence

2021 ◽  
Vol 6 (1) ◽  
pp. 159
Author(s):  
Rezana Balla ◽  
Kamarul Bahari Yaakub
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Financial Education ◽  
Financial Sector ◽  
Financial Industry ◽  
Criminal Offense ◽  
Consumer Loans ◽  
Raising Awareness ◽  
History Of ◽  
The Common

Currently, the number of financial institutions has been increased in Albania, which provides Albanian citizens with access to various financial services, mainly to obtain financing services in the form of microcredit. Given the history of our people, not all the Albanian citizens have had opportunity to have access and to benefit from various financial services. Denial of financial services is an issue that has affected not only Albania, but also other small Balkan countries. The reasons for this denial are numerous, but among them, we can distinguish the lack of lending experience, as one of the common reasons for being excluded in these countries from the development of the financial sector. Taking into consideration that, the growth of financial institutions led to the growth of financial services by raising awareness and financial education of citizens. Finally, the Bank of Albania , as the supervisor of financial activities, intends to set a ceiling on the interest of consumer loans provided by non-bank financial institutions and commercial banks in Albania. This paper aims to present through a professional legal treatment all the challenges of the legal and institutional framework of the Bank of Albania, itself in undertaking this initiative. The questions we intend to answer through this paper are: Is the Bank of Albania legitimized to set a ceiling interest rate for consumer credit? What are the benefits or challenges that this initiative will bring to the financial sector? How will this regulation affect the criminal offense of "Credit Fraud"? How will the financial industry be designed after the implementation of the initiative? Will it have any impact on customer beneficial? etc.

scholarly journals KONTRIBUSI FINTECH DALAM MENINGKATKAN KEUANGAN INKLUSIF PADA PERTANIAN (Studi Analisis Melalui Pendekatan Keuangan Syariah Dengan Situs Peer To Peer Lending Pada Pertanian Di Indonesia)

2018 ◽  
Vol 1 (1) ◽  
pp. 1 ◽  
Author(s):  
Hanik Fitriani
Keyword(s):  
Financial Institutions ◽  
Agricultural Sector ◽  
Financial Sector ◽  
Financial Inclusion ◽  
Network Access ◽  
Financial Industry ◽  
The Public ◽  
Digital Era ◽  
The Government ◽  
Financial Technology

Abstract: Currently the development of technology is growing very rapidly and has entered into all sectors, including the financial sector. With the technology to the financial sector, it is slowly transforming the financial industry into the digital era. The combination of Financial Technique (Fintech) with financial institutions, especially sharia financial institutions, is considered to increase financial inclusiveness in agriculture. Inclusion is a situation where the public is not aware of access to digital finance.The emergence of problems in the first agricultural sector due to lack of land, secondly due to lack of farmer capital and thirdly due to lack of land processors made modernization of technology create agricultural financial technology as an alternative to increase financial inclusion in agriculture.The use of fintech agro in Indonesia is felt to be lacking because of constraints such as lack of literacy to the community, poorly trained human resources, lack of legislation and lack of network access to remote villages. Financial inclusion can increase with the support of the government to improve supporting facilities and infrastructure for the use of fintech agro in Indonesia. الملخص: في الوقت الحالي ينمو تطوير التكنولوجيا بسرعة كبيرة وقد دخل في جميع القطاعات، بما في ذلك القطاع المالي. ومع دخول التكنولوجيا إلى القطاع المالي، فإنها تحول الصناعة المالية إلى العصر الرقمي. ويشعر مزيج من التقنية المالية  مع المؤسسات المالية، وخاصة المؤسسات المالية الشرعية، تزيد التمويل في مجال الزراعة. ظهور مشاكل في القطاع الزراعي الأول بسبب عدم وجود الأراضي، وثانياً بسبب نقص رأس المال الفلاحي، وثالثاً بسبب عدم وجود معالجي الأراضي، أدى تحديث التكنولوجيا إلى خلق التكنولوجيا الزراعية المالية كبديل لزيادة الشمول المالي في الزراعة. ومن المعتقد أن استخدام التكنولوجيا الزراعية في إندونيسيا يفتقر إلى القيود بسبب الافتقار إلى معرفة القراءة والكتابة لدى المجتمع، والموارد البشرية المدربة تدريجيًا، وعدم وجود تشريعات، وعدم الوصول إلى الشبكة إلى القرى النائية. يمكن أن يزيد الإدماج المالي بدعم من الحكومة لتحسين المرافق الداعمة والبنية التحتية لاستخدام التكنولوجيا الزراعية في إندونيسيا.                                         Abstrak: Saat  ini  perkembangan teknologi berkembang sangat pesat  dan telah masuk ke semua sector, diantaranya adalah sektor keuangan. Dengan masuknya teknologi ke sector keungan, maka secara perlahan  mengubah industry keuangan ke era digital. Perpaduan antara Financial Technlogi (Fintech) dengan lembaga keuangan  khususnya lembaga keuangan syariah dirasa dapat meningkatkan inklusif keuangan pada bidang pertanian. Inklusi adalah sebuah keadaan di mana masyarakat kurang paham terhadap akses keuangan digital.Munculnya permasalahan pada bidang pertanian pertama karena kurangnya lahan, kedua karena kurangya modal petani dan ketiga karena kurangnya pengolah lahan membuat modernisasi teknologi menciptakan teknologi financial  agro pertanian sebagai alternative meningkatkan inklusi keuangan pada bidang pertanian.Penggunan fintech agro di Indonesia dirasa masih kurang karena adanya kendala seperti kurangnya literasi kepada masyarakat, Sumber daya manusia yang kurang dibina, peraturan perundang-undangan yang kurang dan kurangnya akses jaringan ke dalam pelosok desa. Inklusi keuangan bisa  meningkat dengan adanya dukungan dari pemerintah guna peningkatan sarana dan prasarana penunjang untuk penggunaan fintech agro di Indonesia.

scholarly journals Global Financial Stability Report, April 2020

2020 ◽  
Author(s):  
Keyword(s):  
Interest Rates ◽  
Financial Institutions ◽  
Financial Stability ◽  
Price Volatility ◽  
Investment Funds ◽  
Domestic Markets ◽  
Portfolio Flows ◽  
Financial Conditions ◽  
Physical Risk ◽  
Low Interest Rates

The April 2020 Global Financial Stability Report (GFSR) assesses the financial stability challenges posed by the coronavirus (COVID-19) pandemic. Chapter 1 describes how financial conditions tightened abrubtly with the onset of the pandemic, with risk asset prices dropping sharply as investors rushed to safety and liquidity. It finds that a further tightening of financial conditions may expose vulnerabilities, including among nonbank financial institutions, and that bank resilience may be tested if economic and financial market stresses rise. Vulnerabilities in global risky corporate credit markets, including weakened credit quality of borrowers, looser underwriting standards, liquidity risks at investment funds, and increased interconnectedness, could generate losses at nonbank financial institutions in a severe adverse scenario, as discussed in Chapter 2. The pandemic led to an unprecedented and sharp reversal of portfolio flows, highlighting the challenges of managing flows in emerging and frontier markets. Chapter 3 shows that global financial conditions tend to influence portfolio flows more during surges than in normal times, that stronger domestic fundamentals can help mitigate outflows, and that greater foreign participation in local currency bond markets may increase price volatility where domestic markets lack depth. Beyond the immediate challenges of COVID-19, Chapter 4 explores the profitability pressures that banks are likely to face over the medium term in an environment where low interest rates are expected to persist. Chapter 5 takes a broader perspective on physical risks associated with climate change. It finds that these risks do not appear to be reflected in global equity valuations and that stress testing and better disclosure of exposures to climatic hazards are essential to better assess physical risk.

scholarly journals Central Banks, Systemic Risk and Financial Sector Structural Reform

2018 ◽  
Author(s):  
Saule T. Omarova
Keyword(s):  
Systemic Risk ◽  
Financial Stability ◽  
Financial Sector ◽  
Central Banks ◽  
Structural Reform ◽  
Structural Reforms ◽  
Financial Industry ◽  
Financial Firms ◽  
Different Types ◽  
Fundamental Pattern

This chapter contribution to an edited volume examines financial sector structural reform as a critical, though largely under-appreciated to date, dimension of central banks’ post-crisis systemic risk prevention agenda. By limiting the range of permissible transactions or organizational affiliations among different types of financial firms, structural reforms alter the fundamental pattern of interconnectedness in the financial system. In that sense, the chapter argues, reforming the institutional structure of the financial industry operates as a deeper form of the currently evolving macroprudential regulation. The chapter identifies three principal models that form a continuum of potential financial sector structural reform choices and applies this conceptual framework to analysis of post-crisis structural reforms in the U.K., EU, and U.S. It further examines how deeply issues of financial industry structure are embedded in central banks’ regulatory and policy agenda and, in light of this connection, discusses potential implications of current structural reforms for central banks’ post-crisis financial stability mandate.

scholarly journals Pendampingan Literasi Finansial Rumah Tangga Masyarakat Dusun Kawan Kabupaten Bengkayang

2021 ◽  
Vol 4 (1) ◽  
pp. 420-427
Author(s):  
William Wendy Ary ◽  
Helena Anggraeni Tjondro Sugianto ◽  
Aloysius Hari Kristianto
Keyword(s):  
Community Service ◽  
Financial Literacy ◽  
Financial Management ◽  
Financial Sector ◽  
Financial Industry ◽  
Service Activities ◽  
Service Activity ◽  
Family Based ◽  
High Level

ABSTRAK Indonesia merupakan negara yang masuk sebagai anggota negara G-20 dan tentu saja memiliki tingkat perekonomian yang tinggi secara global. Salah satu sektor yang mendorong perekonomian Indonesia berasal dari sektor keuangan. Walaupun sector keuangan merupakan salah satu kontributor terbesar, namun masih banyak warga negaranya yang belum terliterasi dengan baik pengetahuan keuangan terutama di Kabupaten Bengkayang dan tentu saja hal ini mendorong tim pengabdian masyarakat Institut Shanti Bhuana tergerak untuk melakukan kegiatan pengabdian kepada masyarakat Dusun kawan di Kabupaten Bengkayang. Kegiatan ini menggunakan tiga metode yaitu ceramah, tutorial dan praktik. Kegiatan pengabdian ini mendapatkan respon dan hasil yang cukup membahagiakan dimana 54,5% peserta merasa cukup puas dengan kegiatan pengabdian yang telah dilaksanakan dan sisanya sebesar 45,5% merasa sangat puas terhadap pelaksanaan kegiatan pengabdian masyarakat. Sebanyak 33 peserta mengatakan paham terhadap keseluruhan materi di kisaran 76-100%, 8 peserta mengatakan paham terhadap keseluruhan materi di kisaran 50-75%, dan hanya 2 peserta yang mengatakan paham terhadap keseluruhan materi di kisaran dibawah 50% Kata kunci :    Literasi Keuangan, Manajemen Keuangan Keluarga, Kabupaten Bengkayang, Pengabdian Masyarakat   ABSTRACT   Indonesia is a country that has been categorized as one of G-20 countries and also indeed has a high level of economy globally. Financial Industry is one of the sectors that contributes Indonesian economy. However, even though the financial sector is one of the biggest contributors, there are still many Indonesia’s citizens who are not with financially iterated, especially in Bengkayang Regency and this problem has motivated the community service team of the Shanti Bhuana Institute to carry out community service activities in Kawan Hamlet in Bengkayang Regency. This activity uses three methods, namely lectures, tutorials and practices. This service activity received both satisfying results where 54.5% of the participants felt quite satisfied with the service activities that had been carried out and the remaining 45.5% were very satisfied with the implementation of community service activities. A total of 33 participants said they understood the whole material in the range of 76-100%, 8 participants said they understood the whole material in the range of 50-75%, and only 2 participants said they understood the whole material in the range below 50% Keywords : Financial Literacy, Family-based Financial Management, Bengkayang Regency, Community Service

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