scholarly journals CHALLANGES OF IMPLEMENTATION THE INNOVATIONS IN THE NON-BANK FINANCIAL SECTOR OF UKRAINE

2019 ◽  
Vol 3 (43) ◽  
pp. 20-34
Author(s):  
Svitlana Mishchenko ◽  
Dmytro Dorofeiev
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Financial Institution ◽  
Financial Sector ◽  
Capital Requirements ◽  
Existing Problems ◽  
Financial Innovations ◽  
Current State ◽  
Crisis Recovery ◽  
Intensive Use

The article examines the current state and prospects for the introduction and implementation the innovations in the non-banking financial sector of Ukraine, which is considered as an independent systemic financial innovation in the domestic financial market. On the basis of analysis of the main trends of the non-banking financial sector, four main stages have been identified: 1991-1999 - the period of formation on the basis of the creation of new financial institutions and the use of new financial instruments, operations and technologies; 2000-2008 - the stage of extensive innovative development; 2009-2013 - post-crisis recovery; 2014 and to date - the transition to an intensive use of innovations. The main challenges hampering the implementation of financial innovations include the following ones: insufficient level of capitalization of financial institutions; imperfect legislative and regulatory framework; low level of inclusiveness of financial services; lack of managerial mechanisms for the implementation of financial innovations; insufficient level of supervision of the non-bank financial institution activities in the field of the use of financial innovations. The main types of perspective financial innovations are determined, and it is substantiated that the main directions of solving existing problems are the following: higher capital requirements, solvency and liquidity of financial institutions; ensuring efficient functioning of an extensive network of non-bank financial institutions and stimulating regional diffusion of financial innovations; increasing the level of corporate governance; improving the regulation systems of the non-bank financial institution activities in the field of using financial innovations based on the implementation the best European practices.

Effects of Financial Innovations on Profitability for Deposit Taking Microfinancing Institutions in Kenya

2018 ◽  
Vol 9 (6) ◽  
pp. 529-536
Author(s):  
Martin Khoya Odipo ◽  
Keyword(s):  
Financial Institutions ◽  
Positive Relationship ◽  
Financial Institution ◽  
Secondary Data ◽  
Financial Statements ◽  
Descriptive Statistics ◽  
Primary Data ◽  
Microfinance Institutions ◽  
Financial Innovations ◽  
Strong Positive Relationship

Recent studies have documented that innovations improve profitability of firms. This article documents that deposit taking micro financial institutions that have adopted financial innovations have increased their profitability. The study covered five years between 2009-2013. Both primary and secondary data were used in the study. Primary data was obtained through administration of drop and pick questionnaires to selected employees of the institutions. Secondary data was obtained from financial statements and management reports of these deposit taking microfinance institutions. Data was analyzed using descriptive statistics, return on asset and multi-liner regression model to determine the effect of each financial innovation applied on profitability on the micro-financial institution. The results showed that most deposit taking microfinance institutions adopted these financial innovations in their current operations. There was strong positive relationship between individual innovations and profitability. In line with profitability ROA also showed improvement each year after the adoption of these financial innovations.

Corporate governance and the social performance: investigation on Tunisian financial institutions

2018 ◽  
Vol 60 (6) ◽  
pp. 1412-1431
Author(s):  
Nejia Nekaa ◽  
Sami Boudabbous
Keyword(s):  
Corporate Governance ◽  
Financial Institutions ◽  
Financial Institution ◽  
Stock Exchange ◽  
Social Performance ◽  
Financial Sector ◽  
Content Type ◽  
The Social ◽  
Questionnaire Method ◽  
The Impact

Purpose The purpose of this study is to show the specificities of the corporate governance of Tunisian financial institutions and the impact of the internal mechanisms of corporate governance of these institutions on their social performance. It is therefore interesting to establish the existing relationship between these mechanisms of corporate governance and the performance of a financial firm. Design/methodology/approach This study aims to study the financial sector, generally characterized by its opacity, its regulation, its evolution and its obscurity. Therefore, a study based on the questionnaire method was recommended. The questionnaire is intended for managers. Therefore, the authors interviewed 138 managers of Tunisian financial institutions dispersed between agencies and headquarters in different regions (Gabes, Tozeur, Gafsa, Sfax, Sousse and Tunisia). Findings As a result, an impact on performance was observed according to the empirical study. Therefore, the authors can conclude an essential role of internal mechanisms for improving the social performance of a financial institution. The empirical findings in this paper lead to important conclusions. Indeed, the variables measuring the governance mechanisms have divergent effects on the social performance of the financial institutions subject to the sample. For the variables board of directors, confidence, culture, auditing, they have a positive effect. While, the incentive remuneration effect negatively the social performance. Originality/value This study will be based essentially on the financial sector in Tunisia: the credit institutions (22 banks), the establishments of leasing (eight companies of leasing), two factoring companies and two banks of cases which are listed on the Stock Exchange of Tunis (BVMT).

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.

Selected challenges associated with the reliance on customer due diligence measures to curb money laundering in South African banks and related financial institutions

2021 ◽  
Vol 8 (1) ◽  
pp. 42-66
Author(s):  
Howard Chitimira ◽  
Sharon Munedzi
Keyword(s):  
South Africa ◽  
South African ◽  
Money Laundering ◽  
Financial Institutions ◽  
Financial Institution ◽  
Financial Sector ◽  
Due Diligence ◽  
Role Players ◽  
Customer Due Diligence ◽  
Combat Money Laundering

Customer due diligence is a means of ensuring that financial institutions know their customers well through know-your-customer (KYC) tools and related measures. Notably, customer due diligence measures include the identification and verification of customer identity, keeping records of transactions concluded between a customer and the financial institution, ongoing monitoring of customer account activities, reporting unusual and suspicious transactions, and risk assessment programmes. Accordingly, financial institutions should ensure that their customers are risk assessed before concluding any transactions with them. The regulation of money laundering is crucial to the economic growth of many countries, including South Africa. However, there are still numerous challenges affecting the banks and other role players’ reliance on customer due diligence measures to combat money laundering in South Africa. Therefore, a qualitative research methodology is employed in this article to unpack such challenges. The challenges include the failure to meet the identification and verification requirements by some South African citizens, onerous documentation requirements giving rise to other persons being denied access to the formal financial sector, and the lack of express provisions to regulate the informal financial sector in South Africa. Given this background, the article discusses the challenges associated with the regulation and implementation of customer due diligence measures to enhance the combating of money laundering in South African banks and related financial institutions. It is hoped that the recommendations provided in this article will be utilised by the relevant authorities to enhance customer due diligence and effectively combat money laundering activities in South African banks and related financial institutions.

scholarly journals The role and importance of internal control and internal audit in the prevention and identification of fraudulent actions in banks

Bankarstvo ◽  
2021 ◽  
Vol 50 (1) ◽  
pp. 66-89
Author(s):  
Snežana Knežević ◽  
Aleksandar Živković ◽  
Stefan Milojević
Keyword(s):  
Economic Development ◽  
Financial Institutions ◽  
Internal Control ◽  
Financial Services ◽  
Internal Audit ◽  
Financial Sector ◽  
Business Environment ◽  
Efficient Management ◽  
Range Of Functions

Modern banks have a specific role and a whole range of functions of paramount importance, as financial institutions for granting loans, creating loans, mobilizing savings and economic development. In the financial sector, there is a growing number of people who are using increasingly innovative and creative ways of targeting all perceived weaknesses in banks and credit approval systems. The persons committing fraud have become increasingly sophisticated, which means that measures to prevent fraud must be constantly developed to ensure that they are able to deal with the threat. The fight against fraud is crucial for financial services institutions. This article aims not only to briefly describe the role of internal control and internal audit in detecting possible fraud in banks, as profit-oriented organizations in today's complex and highly changing business environment, but also to point out the advantages they have in the more efficient management of bank activities.

scholarly journals Prospects of Russian-Sino Financial Cooperation in the Banking Sector

2021 ◽  
Vol 14 (1) ◽  
pp. 99-104
Author(s):  
A. N. Rodionov ◽  
Zhao Tingchuan
Keyword(s):  
Financial Services ◽  
Entire Range ◽  
Essential Role ◽  
Banking Sector ◽  
Financial Sector ◽  
Financial Cooperation ◽  
Mutual Trade ◽  
Current State

The development of business cooperation between Russia and China in the financial sector is a multifactorial process, in which the banking sector plays an essential role. The article in hand describes the current state of Sino–Russian cooperation in the banking sector, points out the main issues and puts forward some suggestions for improving the working partnership between the two countries in this area with the aim of facilitating mutual trade, attracting investment, and developing the entire range of financial services.

scholarly journals Creating a competitive strategy for a digital financial institution

2021 ◽  
Vol 244 ◽  
pp. 10007
Author(s):  
Margarita Agafonova ◽  
Lyudmila Shevchenko ◽  
Oleg Shalnev ◽  
Andrey Chugunov
Keyword(s):  
Financial Services ◽  
Competitive Strategy ◽  
Financial Institution ◽  
External Environment ◽  
Financial Sector ◽  
Digital Transformation ◽  
Business Transformation ◽  
Financial Organization ◽  
Factors Influencing

The paper reveals the essence of digital changes and digital transformation. It was possible to determine the essence of strategic approaches to business transformation in the turbulent conditions of digital transformations and outline ways to build strategies for digital transformations. The paper analyzed the factors influencing the implementation of digital transformation strategies of the financial sector. Based on the capabilities of the external environment, a brief analysis of new opportunities for digital transformation in the field of financial services was carried out. An attempt was made to develop approaches to creating strategic digital transformations of financial companies, as well as develop a competitive strategy for the consistent development of a specific financial organization based on strategic digital changes in the digital transformation environment of the industry.

Banking in Africa

2019 ◽  
pp. 1075-1112
Author(s):  
Thorsten Beck ◽  
Robert Cull ◽  
Patricio Valenzuela
Keyword(s):  
Developing Countries ◽  
Financial Services ◽  
Sub Saharan Africa ◽  
Banking Systems ◽  
Financial Innovations ◽  
The Past ◽  
Current State ◽  
Recent Developments ◽  
Sub Saharan

This chapter takes stock of the current state of banking systems across Sub-Saharan Africa and discusses recent developments, including innovations that might help Africa leapfrog more traditional banking models. Using an array of different data, the chapter documents that African banking systems are shallow but stable. African banks are well capitalized and over-liquid, but lend less to the private sector than banks in non-African developing countries. African enterprises and households are less likely to use financial services than their peers in other developing countries, although there has been significant progress over the past decade. The chapter also describes a number of financial innovations across the continent that can help overcome different barriers to financial inclusion and have helped to expand the bankable and the banked population. The chapter ends with discussing current challenges for policymakers and academics, including the lack of (data on) long-term finance and the supervisory challenges stemming from increasing cross-border banking in the region.

scholarly journals Why customers stay: reasons and consequences of inertia in financial services

2004 ◽  
Vol 14 (2/3) ◽  
pp. 183-194 ◽  
Author(s):  
Lesley White ◽  
Venkat Yanamandram
Keyword(s):  
Financial Institutions ◽  
Preliminary Data ◽  
Financial Services ◽  
Quantitative Research ◽  
Financial Institution ◽  
Qualitative And Quantitative ◽  
Depth Interviews

This research investigated inertia in a financial‐services context, with particular focus on the reasons for consumers’ dissatisfaction and inert behaviour, and studied customers’ complaining behaviours and past and future inertia. The study utilised a two‐part methodology, including both qualitative and quantitative research. A total of 20 in‐depth interviews provided the preliminary data required for developing a questionnaire that was subsequently completed by 410 respondents. Determinants of dissatisfaction included the number and size of account fees, whilst determinants of inertia were the perception of similarity between financial institutions and the complexity, costs and time inherent in switching. Factors differentiating future inertia and future active customers included the type of account, length of time the account had been held, membership of a number of financial institutions, income and level of consideration given to changing financial institution.

Policy Changes and Bank Finance Availability for Small Enterprises in Tanzania

2006 ◽  
Vol 7 (1) ◽  
pp. 59-68 ◽  
Author(s):  
Tadeo Andrew Satta
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Urban Areas ◽  
Financial Sector ◽  
Policy Implications ◽  
Small Enterprises ◽  
Policy Changes ◽  
New Approach

This paper examines whether financial-sector policy changes introduced in Tanzania during the last decade have improved bank finance availability to small enterprises. Study findings reveal that, despite these changes, the level of bank finance to small enterprises is still insignificant. Results likewise indicate that, apart from bringing about limited competition in the provision of financial services, these changes have resulted in the concentration of most financial institutions in urban areas and in only a few regions/provinces. This also negatively affects bank finance availability to small enterprises. These findings have several policy implications for the growth of small enterprises in the country. Key among them is the need for a new approach to policy that will improve bank finance availability to small enterprises.

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