• The Journal of Asian Finance, Economics and Business
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• v.8 no.4
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• pp.151-159
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• 2021

This study aims to compare the level of stability of the Islamic banking system in the ASEAN region, particularly in Indonesia, Malaysia and Brunei Darussalam in the face of macroeconomic turmoil. The data used in this study is secondary data obtained from the official website of the government and banks of each country, with sampling using purposive sampling technique during the period 2013 to 2019. The data analysis method used is panel data using Eviews software. The results showed that the average Z-score value of Islamic banking during the study period in each country was Indonesia (15.61), Malaysia (15.56) and Brunei Darussalam (19.10). The GDP (X1) has a positive effect on the stability of Islamic banking by 54.29%, inflation (X2) has a negative effect of -12.24% on the stability of Islamic banking, and the exchange rate (X3) has a positive effect on the stability of Islamic banking by 42.58%. The findings of this study indicate that the three countries have an average Z-score value that is higher than 2.99, so this shows that Islamic banking in several ASEAN countries is in a stable condition. In addition, a higher GDP and a stronger exchange rate can also encourage a more stable Islamic banking.

• Journal of Distribution Science
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• v.20 no.7
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• pp.23-33
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• 2022

Purpose: Although foreign capital flows have played a vital role in fostering the economic growth in recipient countries, there are some concerns about the adverse impact of international capital flows on the banking stability. Hence, the study revisits this issue to explore the relationship between the different types of foreign investments and banking stability in ASEAN region. Research design, data and methodology: Based on the bank-level data of 96 commercial banks and country-level in six ASEAN countries from 2008 to 2019, we perform the multivariate regression analysis and provide a variety of robustness tests. Results: Our empirical evidence shows the volatility of foreign portfolio investments has significantly negative effect on the banking stability, besides that of foreign other investments has the similar influence but the result is relatively less pronounced in some robustness tests. Additionally, increasing trade cooperation and international distribution may lead countries to face higher risk of banking instability driven from these international investments. Meanwhile, the impact of foreign direct investments is positive, but the evidence is the least obvious. Conclusions: Our findings suggest policy-makers in ASEAN and emerging nations as a whole should carefully consider when building policies-related to mitigate the adverse impact of foreign capital flows.

• KDI Journal of Economic Policy
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• v.38 no.1
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• pp.53-70
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• 2016

This paper examines market concentration and its effect on competition in the Chinese commercial banking market. This study also investigates how changes in competition have affected the financial stability of Chinese commercial banks. To test the competitive conditions, we obtained the H statistic of the Panzar-Rosse model from a revenue function equation. The degree of financial stability is estimated by the Z-score formula. The Chinese banking industry has become an increasingly less concentrated market with an increased number of banks. Along with a decreased market concentration, competition in the Chinese banking industry has improved moderately. However, its market structure is still far from a competitive market. An individual bank's ability to earn higher markup or charge a higher net interest margin contributes to its financial soundness, although a higher degree of market concentration may have negative effect on the financial stability of the entire banking system.

• Convergence Security Journal
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• v.20 no.2
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• pp.37-52
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• 2020

The EU, the United Kingdom and South Korea are actively pursuing open banking to open financial information to fintech companies for financial structure reform and convenience of financial consumers. As open banking is gradually activated, the importance of stability and protecting users of open banking will increase. In particular, Korea has an electronic financial transaction law that has been in effect since 2007 to secure the stability and reliability of electronic financial transactions, but it is difficult to apply to participating organizations in open banking, so there is a risk of preventing security accidents and weakening user protection in open banking. Therefore, this paper examines the foreign legal system of open banking and analyzes the structure and characteristics of domestic open banking and suggests the ways to improve regulations necessary to strengthen open banking stability and user protection.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.10
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• pp.73-85
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• 2020

As an effort to achieve sustainable development and increase people's welfare, financial inclusion has become the policy agenda of many countries. Therefore, the effect of financial inclusion on economic growth, poverty, income inequality, and financial stability in several countries in Asia has become the goal and this is the subject of this study. Financial inclusion is measured by 3 dimensions, namely banking penetration, access to banking services, and use of banking services. Poverty ratio below the national poverty line and the Gini coefficient are used as indicators of poverty and income inequality. Financial stability is measured by Bank Z-Score and bank nonperforming loans. The results from the hypothesis test shows that all dimensions of financial stability simultaneously have significant influence on economic growth, poverty, income inequality, and financial stability. On the other hand, the partial impact of financial inclusion dimension on economic growth, poverty alleviation, income inequality, and financial stability in ten countries of Asia has not been optimal. The derived results of this study is required to be interpreted and considered by the Governments of each country in developing strategies for increasing financial inclusion, so that the policy to achieve sustainable development and enhancement of people's welfare can be achieved.

• The Journal of the Korea Contents Association
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• v.21 no.9
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• pp.312-321
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• 2021

With the full implementation of open banking in which both banks and fintech companies participate, changes in the whole society such as new types of products, services, and businesses are taking place. Whenever new systems and environments change, research on technology acceptance by system users has been continued, and this study also verified how the characteristics of open banking affect the perceived ease of use and usefulness of the Technology Acceptance Model, and the intention to use open banking. As a result of the study, it was found that both information provision, service interactivity, and system stability had a significant effect on perceived ease of use, usefulness, and intention to use open banking. In the future, open banking may bring significant benefits to data sharing, financial access, banking infrastructure, product innovation and pricing, but it is also expected to bring unexpected damage. Therefore, domestic financial institutions should actively cope with the situation where the business environment is greatly changing due to the digital environment change, and at the same time actively foster fintech companies and promote innovation in the financial industry.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.12
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• pp.353-361
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• 2021

An economic system is a means by which societies or governments organize and distribute available resources, services, and goods across a geographic region or country. The Islamic financial system faces a number of challenges as part of its role as a tool for developing economic activities. This study intends to advance research by Lassoued (2018) by expanding the research population to include Islamic banks in Asia and adding new dimensions - the size of the independent commissioner and corporate governance. The population of this study is the 100 largest Islamic banks in Asia. Statistical calculations with the STATA application is used for data analysis. Based on the test results, it was found that the size of the sharia board and the independent board of directors did not affect the financial stability of Islamic banking companies. Another finding is that the size of the independent commissioner affects financial stability. This finding shows that commissioners have played an active role in the company, indicating that if the sharia banking company has an ideal number of independent commissioners, it will be advantageous to the company's stability and business sustainability.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.7
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• pp.139-150
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• 2021

The financial system is a relatively important sector in the economy of a country. Its role in providing access to financial services to people is able to support a better economy. The main problem in this financial system is caused by the barriers that prevent individuals or companies from accessing these financial services. This study aims to empirically analyze the relationship financial inclusion and financial system stability in ASEAN 4 (Indonesia, Malaysia, Thailand, and The Philippines). Financial inclusion proxied by the financial inclusion through credit variable and other banking variables such as the number of financial services access, banking asset, and financial system stabilization is seen from banking performance through non-performing loan and Z score instruments. Empirically, the study uses panel data in the form of annual data for 2005-2016. The method used Panel VAR. The result shows that financial inclusion affects the stability of the financial system in ASEAN 4. This indicates that financial development through financial inclusion can encourage stability of the financial system in ASEAN 4. In this globalization era, the integrated financial system is increasing, this research shows the importance of developing financial inclusion by eliminating barriers to financial exclusion.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.3
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• pp.751-761
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• 2021

The Vietnamese economy is a developing country that has brought many opportunities and challenges for the banking system. Commercial banks have developed strongly from quality to quantity, which plays a vital role in developing the economy. They play an important role in capital formation, which is essential for the economic development of a country. They provide financial services to the general public and businesses, ensuring economic and social stability and sustainable growth of the economy. Therefore, the relationship between bank depth and economic growth is of importance in research. This paper used a VAR (Vector Autoregressive Models) estimator for time series data models. The data is collected quarterly from the first quarter of the year 2000 to 2020. The study uses the VAR model to examine the causal relationships of economic growth, growth in money supply expansion, private sector capital requirement, and banks' domestic credit. The results indicate a general short-run relationship between banking sector depth and economic growth with a positive connection, but in the long term, the relationship between these variables can be reversed because of other macro factors. The findings show the two-way causal relationship between GDP growth and banking depth factors. This research contributes to policy-making by underlining the banking sector depth determinants when setting regulations and policies to develop the banking sector.

• Journal of the Korea Institute of Information Security & Cryptology
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• v.27 no.3
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• pp.549-562
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• 2017

In recent years, as the proportion of mobile banking has become bigger with daily usage of mobile banking, security threats are also increasing according to the feeling. Accordingly, the domestic banking system introduces security solution programs in the banking application and sets security check points to ensure the stability of the application in order to check whether it is always executed. This study presents a vulnerability of inactivity bypassing mobile vaccine program operation checkpoints using the intermediate language statically and dynamically analysis when decompiling the android banking applications of major banks in Korea. Also, through the results, it identifies possible attacks that can be exploited and suggest countermeasures.