Assessing statistical link between FinTech PEST environment and achievement of SDGs

Implementation of SDGs is the unified goal of 193 UN Member States. FinTech plays a crucial role in achieving it. Therefore, the development of FinTech must be facilitated through proper policy-making and public finance, creating beneficial PEST conditions. However, the interaction of the FinTech PEST environment and achievement of SDGs is a topic that has not yet been addressed. The purpose of this study is to assess the link between these two indicators using statistical methods, indicate SDGs having the strongest link to FinTech PEST environment, and explain the interface to facilitate its useful application within government and financial regulations, as well as administration of the state and municipal financial entities. The results show that the economic and investment potential of Northern Europe is caused by the most favorable PEST environment for FinTech sector development, and demonstrate the existence of a statistical link between FinTech PEST environment and SDG4, SDG8, SDG9, SDG16. There is a clear trend – the more favorable the FinTech PEST environment, the better the achievement of SDGs, the better results of Sustainable Finance indicators, and the higher the Sustainable Finance typology assigned to the country. These results suggest that the goals, targets, and indicators of SDG4, SDG8, SDG9, and SDG16 contribute to the formation of a favorable environment and are conductive to the sustainable development of the FinTech industry in a country. Therefore, sustainability in the development of FinTech industry and finance, and the achievement of SDGs, is a circular process of three interacting factors.

Judicial Challenges Facing the Islamic Finance Industry of Nigeria

A fundamental requirement of Islamic financial practice, Shariah-compliance covers all aspects of the transaction from contractual agreements to execution to dispute resolution. Thus a sound judicial system with in-built Shariah-compliance mechanisms is indispensable to facilitate the execution of such contracts and to ensure the sustainability of the practice. In Nigeria, this system is still under development with the judiciary the most readily available option for dispute resolution. However, comprised merely of civil courts with jurisdiction to hear Islamic finance cases, these mechanisms subject the industry to possible legal and Shariah-compliance risks. Having conducted a series of interviews with experts, this study recommends: constitutional and legislative reform to grant jurisdiction to existing civil courts; the Financial Regulations Advisory Committee of Experts (FRACE) should be statutorily entitled to offer binding advice to courts; the practice itself should be enshrined in appropriate legislation; and there should be curricular reform to ensure judges and lawyers are adequately trained/educated in the particulars of Islamic finance.

Systemic risk and firm size: is notional amount a good metric?

Purpose Many recently enacted financial regulations exempt smaller entities. While the literature on systemic risk provides efficiency justifications for certain exemptions, the efficiency rationale depends on measuring size appropriately. This paper aims to argue that notional amount, the metric used in derivatives regulations, is a flawed measure of an entity’s contribution to systemic risk. This study discusses an alternative size measure – entity-netted notionals or ENNs – which better reflects risk exposure as discussed in that literature and provides empirical evidence on these two metrics. Design/methodology/approach This study first discusses the relationship between the systemic risk literature and size-based exemptions. This study then describes the current metric and our risk-based alternative. Finally, this paper presents regulatory data on US interest rate swaps (IRS) and uses this to characterize some features of risk exposure. Findings The unique data set provides empirical insight into how well the size metric used in current regulations corresponds to a more theoretically oriented measure. This study finds the relationship between the metrics is fairly weak for entities for whom the size-based exemption will soon be ending, and provide an empirical basis for understanding why they differ. This study also provides evidence on the correlation of risk within this group of entities. Practical implications The paper has important implications for regulation of derivatives and financial markets more generally. To the extent exemptions for small entities make good policy, having the appropriate metric is critical. As such, the metric could be a valuable tool for regulators. Originality/value This paper examines the likely objectives of size-based exemptions from financial regulations and relates them to the systemic risk literature. It provides a unique empirical description of IRS positions, which allows us to examine the relationship between the metric used by regulators and our alternative.

The State and the Securitization of Civil Society Organizations in Nigeria

While debates on the effects of the post-9/11 counterterrorism measures (CTMs) on civil society organizations (CSOs) exist, there is a paucity of data on how CTMs are shaping the spaces and actors of CSOs in Nigeria. Using a mixed-methods design, this article analyzes CSOs’ perceptions on the effects of counterterrorism financing measures, the countermeasures that CSOs are taking, and the government’s views on the security threat posed by CSOs. The findings show that although counterterrorism financing were not as constraining, it appears to increase the administrative cost of CSOs and disadvantaged the less prominent CSOs forcing them to close down or merge with more prominent CSOs. Besides, the result shows the state’s increasing interest in the activities of CSOs on the grounds of national security imperatives. Thus, I argue CTMs are evolving, and thus CSOs will experience increased financial regulations. Also, CTMs expansion will threaten CSOs’ sustainability and polarize them.

„Pénzügy és gazdasági fejlődés hosszú távon” Shin, Yongseok (2018): Finance and Economic Development on the Very Long Run: A Review Essay (Journal of Economic Literature, 56(4), 1557-1586.)1

Yongseok Shin esszéjében Goetzmann Money Changes Everything: How Finance Made Civilizations Possible című könyvéről ír bemutatót, majd a könyv hipotézisét továbbgondolva vizsgálja, vajon az egyes pénzügyi találmányok hatást gyakorolnak-e a hosszú távú gazdasági fejlődésre. Shin Goetzmann művét további gazdaságtörténelmi elemzésekkel is összeveti. Arra a következtetésre jut, hogy a pénzügyek jelenléte fontos összetevő egy jól működő gazdaságban, azonban nem lehet az egyetlen fejlődést előidéző tényező. Shin a pénzügyi történelem további alapos tanulmányozását javasolja, és azt a jelenlegi pénzügyi szektor szabályozásainak kialakítása során is hasznosnak véli. Yongseok Shin reviews Goetzmann’s book, titled Money Changes Everything: How Finance Made Civilizations Possible. He reinterprets its main hypothesis, and analyses how the presence of financial tools affect economic development in the very long run. He also compares Goetzmann’s viewpoint to other economic historians’ results. He concludes that financial advancement is certainly one of the key factors leading to a prosperous economy, but cannot be the single one. Shin argues that financial history lessons might enable us to create more adequate financial regulations.

A theory of financial services competition, compliance and regulation

Purpose This paper aims to derive the conditions under which a financial services firm will want to hire a compliance services company and show how much money they should spend. Design/methodology/approach This paper uses a mathematical model to show the intuition behind many of the compliance decisions that cost financial services firms billions every year. Findings This paper finds that hiring compliance firms may save banks and brokerages money. However, their advice may lead to an embarrass de riches – whereby the lower compliance costs and higher profit advantages they confer may lead to more regulation. Regulators may furthermore tighten regulation – with the expectation that financial service firms will adapt somehow. This paper presents a fresh perspective on the Menon hypothesis, deriving conditions under which financial regulations help the competitiveness of an international financial centre. Research limitations/implications The paper represents one of the first and only models of compliance spending by financial services firms. Practical implications This paper provides five potential policy responses for dealing with ever ratcheting financial regulations. Originality/value The paper hopefully launches literature on the compliance service industry – and the buy-or-do decision to engage in financial services compliance. This paper finds that efficient compliance can hurt firms, by encouraging regulation. This paper shows how firms can forestall the extra regulation that comes with easier internet and computerised monitoring.

UNWTO Basic Documents, Volume II – Staff Regulations and Staff Rules, 3rd edition

The UNWTO Basic Documents bring together three volumes which constitute the main legal framework of the World Tourism Organization (UNWTO) : Volume I – Statutes, Rules of Procedure, Agreements, provides a general introduction into the Organization’s legal framework, role and functions. It includes the Statutes and the Financing Rules in its Annex. These outline the Organization’s budget and contributions of Members. Volume II – Staff Rules and Staff Regulations, contains the framework for duties, rights and benefits of employees. Volume III – Financial Regulations and Rules, constitutes the framework governing the budgetary and financial transactions of the Organization. It comprises the Financial Regulations and the Detailed Financial Rules whereupon each chapter of the Financial Regulations has its corresponding chapter in the Detailed Financial Rules.

UNWTO Basic Documents, Volume III – Financial Regulations and Rules

The UNWTO Basic Documents bring together three volumes which constitute the main legal framework of the World Tourism Organization (UNWTO) : Volume I – Statutes, Rules of Procedure, Agreements, provides a general introduction into the Organization’s legal framework, role and functions. It includes the Statutes and the Financing Rules in its Annex. These outline the Organization’s budget and contributions of Members. Volume II – Staff Rules and Staff Regulations, contains the framework for duties, rights and benefits of employees. The present Volume III – Financial Regulations and Rules, constitutes the framework governing the budgetary and financial transactions of the Organization. It comprises the Financial Regulations and the Detailed Financial Rules whereupon each chapter of the Financial Regulations has its corresponding chapter in the Detailed Financial Rules.

PROSPECTS FOR ISLAMIC MICROFINANCE UNDER THE EXISTING LEGAL AND REGULATORY FRAMEWORK IN LIBERIA

There is no specific regulation or legislative framework for Islamic microfinance operations in Liberia. This is largely due to the non-application of Islamic laws in the country, despite the increasing economic strength of Muslims in the country. This article aims to examine whether the existing laws in Liberia permit the establishment and operation of Islamic microfinance. The research employed a qualitative analytical approach, which examines legal and regulatory framework for the microfinance sector in Liberia. The materials and data which include related laws were collected, and analysed inductively to suit the needs of the research. This article argues that, the existing laws including the Liberian constitution and other relevant financial regulations such as, the Central Bank of Liberia Act of 1999, the New Financial Institutions Act of 1999 and the Microfinance Policy and Regulatory & Supervisory Framework for Liberia (MPRSFL) have no objection to the introduction of Islamic microfinance in the country. This research is a first to appraise critically some relevant laws on the legal framework of microfinance in Liberia and its relevance to Islamic microfinance. The Financial Institutions Act of 1999 confers on the Central Bank of Liberia the powers to regulate and supervise all financial institutions in the country, including the microfinance providers. The article concludes that the stakeholders need to continue supporting the microfinance sector, including Islamic microfinance in Liberia by building an appropriate legal ecosystem that providing for a smooth running of microfinance programmes in the country.