Consolidating the gains

This paper surveys the theoretical and empirical literature on the role of state-owned banks and also presents some new results and a robustness analysis. The paper shows that state-owned banks located in developing countries have fiscal costs because they are characterized by lower returns than comparable privately owned banks (on the other hand, there is no evidence that state-owned banks located in industrial countries are less profitable than their private counterparts). We then point out that this evidence cannot be used as an argument against the existence of state-owned banks, as this low profitability might stem from state-owned banks activity on projects characterized by low private sector investment and high social return. While we find no evidence that the presence of state-owned banks promotes economic growth or financial development, we also find that the evidence that state-owned banks lead to lower growth and financial development is not as strong as previously thought.

Abstract. Banking business in today’s realities is one of the most dynamic effectively progressing spheres of the economy. In current conditions, a situation has developed in Ukraine in which the main activity of the bank, which can really provide a profit, is credit activity. However, the implementation of this activity is accompanied by significant risks. This, in turn, determines the importance of the formation of effective decision-making systems in banking institutions regarding the loans issuance to economic entities. The outlined causes the need to conduct new scientific research directed to the efficiency increase of the credit activity of banking institutions, ensuring the quality of credit management.Within the article, the essence of the “bank credit management” category is substantiated, which is carried out based on the approaches analysis to considering this definition formed in the scientific literature, the study of the content of such categories as “credit” and “management”. As a result, the author’s understanding of the content of the bank’s credit management is proposed, namely: bank credit management –a separate component of bank management, a complex system of methods, tools, rules and norms used by employees to carry out credit activities by a banking institution based on the established basic principles of its implementation, and ensure financial stability of the bank, rational use of available financial resources and receiving profit. Within the article, basic substantive characteristics of the specified category are singled out, the features of the credit management formation by various economic entities, including enterprises, which do not provide financial services, are analyzed.The results of the analysis of the conducted research made it possible to determine and describe the role of the bank’s credit management in the development of the banking activity, establish that this activity is leading from the point of view the formation of income and profit of these institutions in Ukraine.

The aim of the article is to analyze the features of the modern stage of banking marketing, critical determinants of marketing risk management of the banking sector, consideration of innovative technologies of human-centered marketing of Industry 5.0 banks, marketing challenges of image formation of Ukrainian banks in conditions of sustainable development. Analysis results. Effective management of marketing risks today is a key factor in the stability of banking sector enterprises and is an important indicator of the success and reliability of its functioning, a key to sustainable development. Marketing risk management performs a critical function in ensuring the protection of the interests of the state, customers and employees of the bank, increasing the overall safety and stability of the financial institution, contributing to bringing the activities of Ukrainian financial institutions closer to the best global standards. An innovative marketing strategy is becoming one of the most important aspects of the successful operation of banks in the conditions of increased competition and growing consumer demands, a key factor for achieving the goals of sustainable development in the direction of the integration of criteria (ESG) in banking products and services. In the conditions of turbulent digital transformations, shortening the terms of innovation cycles, the banking system faced the problem of meeting the requirements of people-centeredness and social responsibility in the targeted formulation and presentation of the value of its own services. While sustainable development is defined as the organization's ability to maintain stability and reliability in the long term despite external changes, such as economic fluctuations, competition, technological changes and other factors, human-centricity is one of the main postulates of the Industry 5.0 concept. The implementation of the principles of sustainable development in the bank's risk management system contributes not only to the economic growth of the institution, but also forms the complex long-term stability and responsibility of the financial institution, a positive image on the market, transforms the impact on society and the environment in accordance with the Policy of the NBU on the development of sustainable financing for the period up to 2025 year. Conclusions and directions for further research. The conducted analysis of the features of the modern evolutionary stage of banking marketing demonstrates the criticality of taking marketing risks into account when forming a system for ensuring the management of banking sector entities in order to achieve the goals of human-centered sustainable development of Industry 5.0. Effective management of marketing risks in the banking sector should be aimed not only at the active introduction of innovative tools of sustainable development into the operational activities of banks, but first of all at effective communication with clients and the formation of a positive image of banks and strengthening the trust of clients. The omnichannel nature of the modern stage of holistic marketing and the dynamism of technological development provide an opportunity not only for personalized management of banks' quantitative indicators. Due to effective communication on digital platforms, the application of innovative data analytics technologies and the practical implementation of artificial intelligence tools, the task is not only to increase customer loyalty, but also to harmonize external and internal evaluations of banks in ratings. The implementation of innovative technologies of sustainable development supports not only the maximum automation of the bank's business processes, but also allows to improve the quality of forecasting the transformations of customers' and competitors' markets with a focus on environmental and social values regarding the integration of ESG criteria into banking products and services. Prospects for further study of the stated problem are to study the challenges of digitalization of banking marketing and socially responsible consequences for all participants of the digital marketing ecosystem based on the principles of Industry 5.0.

Purpose: This article investigates specifics of the transformation of banking activity in the conditions of digitalization of the economy. In the light of penetration of digital into all the spheres of our life, the rapid development of and their active implementation in the banking sector of the economy, digital innovations are formed at the intersection of the concepts of financial technologies and financial innovations. Design/Methodology/Approach: In order to investigate the process of transformation of the banking sector in the context of digitalization, it is necessary to consider this issue from three points of view: 1) theoretical understanding of the concept of financial technologies; 2) the need to ensure the efficiency and sustainability of the banking sector; 3) the change in the IT- architecture of banking activities and the formation of the digital ecosystem with banks in the center. It is also reasonable to analyze promising areas of implementation of into the banking sector. Findings: The main directions of the development of in the banking sector, aimed at further transformation of traditional banking services through digital technologies. Practical Implications: The results of the study can be applied in the development of the legislative regulation of the FinTech industry in Russia. Originality/Value: The main contribution of this study is to determine the prospects for the development of the domestic banking sector in the context of digitalization, the need to transform in order not only to improve the competitiveness and efficiency of functioning, but also to stay in the banking business.

Legal enforcement relies on at least three aspects; the existing regulatory framework, the institution acting for the enforcement of such regulatory framework, and the conduct of the persons involved. Islamic banking, as a legal entity is also subject to the legal enforcement of various regulations, including Shari`ah compliance. The well being of Shari`ah compliance in Islamic banking does not solely depend on the regulations issued, but also (as the above legal theory suggests) depends on the response of the public as well as on the institution which acts to enforce such compliance. It is clear that the Shari`ah board is one of the institutions in this important circle. Hence, the discussion on the Shari`ah board as the body that is designated to cater such compliance is significant to comprehend the whole aspect of the implementation of Shari`ah compliance. The regulation of Shari`ah compliance indicates that the compliance on the product and operation of Islamic banking with the Shari`ah principles is an ultimate basis for Islamic banking. It is part and parcel of Islamic banking’s Shari`ah governance. Having said this, there must be a body responsible for the supervision towards such compliance. It is for this reason the Shari`ah board is established within an Islamic bank or conventional bank conducting Islamic banking business. Due to the faith-based nature of the Islamic banking business, the task of the Shari`ah board is much wider than just in terms of products supervision. The members of such board need to cover more comprehensive aspects than advisors in conventional banking business. In order to perform its function perfectly, the capacity of the members certainly needs enhancement. They are required to posses a deep understanding on Shari`ah principles not only in the product development, but rather in all activities of Islamic banking. It is therefore, through the robust regulations pertaining to the role, duties and responsibilities of the Shari`ah board, the challenges towards Shari`ah compliance that the bank may enccounter, could be properly responded. Presumably from the above discussion, the compliance of Islamic banks to Shari`ah principles, to a great extent, is also determined by the role of such board. Consequently, this body needs sufficient authority to enable its members to perform their functions effectively. The members also shall be given proper independence from undue influence of the board of directors and the board of management within the industry. This paper seeks to explore the independency of the Shari`ah board members in Malaysia and Indonesia, which is very practical in nature. Prior to that, the overview on the theoretical aspect will be presented to provide a clear understanding on independence of the Shari`ah board members.

Efforts to accelerate the development of Sharia banking are not only carried out by the Government and the Financial Services Authority as regulators, but also need support from internal Sharia banks, as well as positive appreciation of the Indonesian people, thus making conventional banks interested in converting their bank business into sharia business. The methodology in this paper is normative juridical with the aim to examine the ideality of the concept of banking development in Indonesia, where banks operating in Indonesia are not only conventional banks but also consist of banks that have undergone sharia principles based on Islamic laws between banks and other activities. The conclusion of this paper is that conversion is reviewed from positive law, namely that Conventional commercial banks that want to turn their business activities into banks based on sharia principles must meet the provisions contained in Article 4 paragraph (1) of the Regulation of the Financial Services Authority No. 64/POJK.03/2016 concerning Changes in Business Activities of Conventional Banks into Sharia Banks, which can only be done with permission from the Financial Services Authority.

Low-income and middle-income countries continue to face challenges in financing health programmes due to budgetary constraints and decreased donor funding. Off-budget financing has become crucial for controlling diseases like malaria, HIV/AIDS and tuberculosis (TB). However, there is limited evidence on alternative domestic funding approaches to support implementation of healthcare programmes in Tanzania. The study explored stakeholder perspectives on alternative domestic funding approaches to support malaria, HIV/AIDS and TB services in Tanzania. A qualitative descriptive design was employed to gather insights from 76 purposely selected stakeholders, including policymakers, programme managers, regional health managers, district health managers and healthcare workers. Data were managed and analysed thematically. Four major themes emerged: current sources of funds, financial resources needed, proposed alternative domestic funding mobilisation strategies to support implementation of malaria, HIV/AIDS and TB and challenges of implementing the proposed strategies. Current major sources of funds included multilateral donors, development partners, the central government and internal sources. There was a consensus on a decrease in donor funding due to the COVID-19 pandemic. The proposed alternative domestic funding strategies included establishing universal health insurance, reducing beneficiaries of service exemptions, establishment of disease-specific funds and taxation of certain products. Implementation challenges for the proposed strategies included poor awareness, conflicting political promises and accountability issues. The financing gap for malaria, HIV/AIDS and TB services is significant due to decreasing donor funding. Strategies such as strengthening insurance schemes, reducing exemption groups and taxation could help, but community sensitisation and improved fund accountability are crucial.

How do financial development, energy consumption, natural resources, and globalization affect Arctic countries' economic growth and environmental quality? An advanced panel data simulation

This study takes Industrial Bank as a case to deeply analyze its practices in promoting green finance development through sustainable development bonds. First, the paper explores the fundamental concepts and current development of green finance and sustainable development bonds, elucidating the growth trends in the global green finance market. Next, by conducting a detailed analysis of the issuance process of Industrial Bank's sustainable development bonds, the paper evaluates the impact of these bonds on the bank's business, market feedback, and the development of the green economy. In addition, the paper examines Industrial Bank's measures in risk management and innovation strategies, and through a comparison of green finance practices domestically and internationally, provides insights for other commercial banks on advancing green finance. The results show that Industrial Bank has effectively expanded its green finance business through sustainable development bonds, providing strong support for China's green economic transition.

Does natural resources cause sustainable financial development or resources curse? Evidence from group of seven economies

Private Sector-led Urban Development Projects. Management, Partnerships and Effects in the Netherlands and the UK

This study investigates empirically the Environmental Kuznets Curve hypothesis within a financial development and natural resource extraction context for aggregate and sectoral carbon dioxide (CO2) emissions in Tunisia. Using annual time-series data covering the period 1971–2016 it is found that financial development increases aggregate CO2, CO2 emissions from the transport sector, and CO2 consumption from liquid fuel but reduces CO2 emissions from manufacturing and construction as well as the residential and building. Natural resource extraction exerts upward pressure on CO2 emissions from the manufacturing and construction sector as well as from the consumption of gaseous fuels whiles the contrary is found for CO2 emissions. The existence of the EKC hypothesis or otherwise within the context of financial development and natural resources extraction is found to be dependent on the source of CO2 emissions in Tunisia. The findings among other things imply the enforcement of stringent environmental laws that ensure environmental quality amidst natural resources extraction and financial development.

Financial development and environmental degradation: Do human capital and institutional quality make a difference?

We studied the relationship between investor protection, government behavior, and financial development using data covering six provinces (Guangdong, Jiangsu, Shandong, Zhejiang, Henan, and Sichuan) and two provincial-level cities (Beijing and Shanghai) in China for the period 2005–2014. Using panel data estimation techniques, we found that there is a positive relationship between investor protection and financial development; by contrast, highly-intense government intervention leads to more financial impediments. Moreover, government intervention in education could promote financial development through its contribution to having a higher amount of the fund supply. Our empirical findings have important implications for policy-makers in terms of reforming the capital market regulation.

Financial development and geopolitical risks can significantly affect sustainable development. However, the roles of these factors in sustainable development are rarely investigated. Thus, this study takes into account the role of geopolitical risk while exploring the effects of financial development, natural resource rents, and eco-innovation on sustainable development in the Organization for Economic Co-operation and Development (OECD) countries. To this end, yearly data from 1990 to 2019 is analyzed using advanced econometric tests. The Common Correlated Effects Mean Group (CCEMG) results indicate that financial development and eco-innovation are significantly and positively related to sustainable development. Natural resource rents have a detrimental impact on sustainable development which confirms the presence of the resource curse hypothesis in OECD countries. Furthermore, the results revealed that controlling geopolitical risk is useful in fostering sustainable development. Lastly, the panel Granger causality test unveiled one-way causality from financial development, eco-innovation, natural resource rents, and geopolitical risk to sustainable development. Moreover, causalities are found from geopolitical risk to financial development, eco-innovation and natural resources. These findings suggest that OECD countries should prioritize financial development and eco-innovation policies for sustainable development while mitigating the negative effects of natural resource rents. The geopolitical risk can harm sustainable development, so policymakers should promote international cooperation and risk-sharing.