Commercial Banking and FinTech in Emerging Economies

A special issue of Journal of Risk and Financial Management (ISSN 1911-8074). This special issue belongs to the section "Banking and Finance".

Deadline for manuscript submissions: 30 June 2025 | Viewed by 2017

Special Issue Editor


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Guest Editor
Department of Economy, University North, 48000 Koprivnica, Croatia
Interests: data envelopment analysis; banking sector; developing countries; efficiency

Special Issue Information

Dear Colleagues,

Banks and financial intermediaries generally play a crucial role in emerging economies by facilitating efficient resource allocation, reducing financing costs, savings, and mitigating the impact of random shocks on capital investment, thus successfully addressing market imperfections and information asymmetry.

The impact of blockchain technologies on banking in emerging economies has recently become more important and topical than ever. Emerging financial technologies (FinTech), blockchain technologies, and financial innovations are consistently improving the efficiency and accessibility of financial services and systems throughout the globe and are poised to significantly impact banking in emerging countries. These developments are transforming the global financial landscape, potentially diminishing the traditional intermediary role of banks but also presenting opportunities for emerging market banks to reach underbanked populations.

This Special Issue will feature original research papers on all banking roles in emerging countries, including the challenges brought about by blockchain technology and FinTech. Therefore, high-quality articles that introduce new theoretical and applicable notions in banking and blockchain technology (in both the developed and developing world), alongside related topics, are highly encouraged. Submitted articles should be written in non-technical language so that people outside related disciplines may understand them.

Dr. Katerina Fotova Čiković
Guest Editor

Manuscript Submission Information

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Keywords

  • banking industry
  • blockchain technology
  • FinTech
  • financial innovations
  • financial markets in emerging economies
  • risk management
  • econometric models for performance assessment
  • mathematical models for efficiency evaluation
  • bitcoin
  • financial intermediaries

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Published Papers (1 paper)

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Research

18 pages, 258 KiB  
Article
Assessing Basel Capital Regulations: Exploring the Risk and Efficiency Relationship in Emerging Economies
by Adnan Bashir, Asma Salman, Rania Itani and Alessio Faccia
J. Risk Financial Manag. 2025, 18(1), 36; https://doi.org/10.3390/jrfm18010036 - 15 Jan 2025
Viewed by 1735
Abstract
This research investigates the relationship between Basel capital regulations, bank risk, and bank efficiency in the context of Pakistani and Indian commercial banks. This study examines the period from 2009 to 2022 and specifically analyses the impact of Basel III capital requirements on [...] Read more.
This research investigates the relationship between Basel capital regulations, bank risk, and bank efficiency in the context of Pakistani and Indian commercial banks. This study examines the period from 2009 to 2022 and specifically analyses the impact of Basel III capital requirements on risk and efficiency. Quantitative methods are employed, utilising data from central bank websites and the BankScope database to construct a comprehensive sample of commercial banks in Pakistan and India. The system-generalised method of moments (GMM) estimation technique addresses potential endogeneity issues in the regression models. The findings shed light on the effectiveness of these regulations and provide insights for policymakers and regulators in both countries. The results indicate that Basel capital regulations have generally increased banks’ risk-taking behaviour in Pakistan and India. However, they have not improved the overall efficiency of the banking sector in either country. Bank efficiency declined during the study period, highlighting the limited effectiveness of Basel capital regulations in enhancing efficiency. Furthermore, the impact of these regulations on risk and efficiency varies between the two countries. In Pakistan, the regulations do not significantly affect bank efficiency, while in India, they decrease efficiency. Additionally, Basel III capital regulations do not significantly impact the risk taken by banks in either country. This study concludes by emphasising the need for alternative mechanisms or policies to improve the banking industry’s efficiency, as Basel capital regulations alone have proven ineffective. The findings offer valuable insights for central banks and regulators in assessing the relationship between capital regulations, risk, and efficiency and implementing appropriate measures to enhance the performance of the banking sector. This study recommends the following key points: the adoption of tailored regulatory approaches to address specific challenges, achieving an optimal balance between risk management and operational efficiency, enhancing the effectiveness of management roles, considering the influence of macroeconomic factors, and evaluating the implications of long-term policy development for sustainable progress. The present study adds to the prevalent literature on the impact of capital regulations on bank risk and efficiency nexus. This study focuses on Pakistan and India, which are two important developing nations. Moreover, another important contribution of this study lies in the effect of Basel III capital regulation on bank risk, as these capital regulations are different from other Basel capital requirements. Full article
(This article belongs to the Special Issue Commercial Banking and FinTech in Emerging Economies)
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