Search Results (64)

This study examines the role of supervisory frameworks in shaping the risk management behavior of Greece’s four systemic banks during the period of 2015–2024. It explores how regulatory reforms under Capital Requirements Regulation II, Basel III, and European Central Bank oversight influenced capital adequacy, asset quality, and liquidity metrics. Employing a quantitative methodology, this study analyzes secondary data from Pillar III disclosures, annual financial reports, and supervisory statements. Key risk indicators (capital adequacy ratio, non-performing exposure ratio, liquidity coverage ratio, and risk-weighted assets) are evaluated in conjunction with regulatory interventions, such as International Financial Reporting Standards 9 transitional relief, the Hercules Asset Protection Scheme, and European Central Bank liquidity measures. The findings reveal that enhanced supervision contributed to improved resilience and regulatory compliance. International Financial Reporting Standards 9 transitional arrangements were pivotal in maintaining capital thresholds during stress periods. Supervisory flexibility and extraordinary European Central Bank support measures helped banks absorb shocks and improve risk governance. Differences across banks highlight the impact of institutional strategy on regulatory performance. This study offers a rare longitudinal assessment of supervisory influence on bank risk behavior in a high-volatility Eurozone context. Covering an entire decade (2015–2024), it uniquely links institutional strategies with evolving regulatory frameworks, including crisis-specific interventions such as International Financial Reporting Standards 9 relief and asset protection schemes. The results provide insights for policymakers and regulators on how targeted supervisory interventions and transitional mechanisms can enhance banking sector resilience during protracted crises. Full article

Background/Objectives: High sodium consumption increases the risk of hypertension and cardiovascular disease. Although food remains the primary source of intake, elevated sodium levels in drinking water can further contribute to excessive intake, particularly in populations already exceeding recommendations. This review examines the extent to which national drinking water standards account for sodium-related health risks and aims to inform discussion on the need for enforceable, health-based sodium limits. Methods: National standards for unbottled drinking water in 197 countries were searched for using the WHO 2021 review of drinking water guidelines, the FAOLEX database, and targeted internet and AI searches. For each country, data were extracted for the document name, year, regulatory body, regulation type, sodium limit (if stated), and rationale. Socio-geographic data were sourced from World Bank Open Data. A descriptive analysis was conducted using Microsoft Excel. Results: Standards were identified for 164 countries. Of these, 20% (n = 32), representing 30% of the global population, had no sodium limit. Among the 132 countries with a sodium limit, 92% (n = 121) adopted the WHO’s palatability-based guideline of 200 mg/L. Upper limits ranged from 50 to 400 mg/L. Only twelve countries (9%) cited health as a rationale. Three countries—Australia, Canada, and the United States—provided a separate recommendation for at-risk populations to consume water with sodium levels below 20 mg/L. Conclusions: Globally, drinking water standards give inadequate attention to sodium’s health risks. Most either lack sodium limits or rely on palatability thresholds that are too high to protect health. Updating national and international standards to reflect current evidence is essential to support sodium reduction efforts. Health-based sodium limits would empower communities to better advocate for safe water. Amid rising water salinity, such reforms must be part of a broader global strategy to ensure universal and equitable access to safe, affordable drinking water as a basic human right. Full article

This study aims to analyze the determinants of bank profitability in Angola by employing panel data econometric models, specifically, the Generalized Method of Moments (GMM), to assess the impact of internal and external factors on the financial indicators ROE, ROA, and NIM for the period 2016 to 2023. The results reveal that credit risk, operational efficiency, and liquidity are critical determinants of banking performance. Effective credit risk management and cost optimization are essential for the sector’s stability. Banking concentration presents mixed effects, enhancing net interest income while potentially undermining efficiency. Economic growth supports profitability, whereas inflation exerts a negative influence. The COVID-19 pandemic worsened asset quality, increased credit risk, and led to a rise in non-performing loans and provisions. Reforms implemented by the National Bank of Angola have contributed to strengthening the banking system’s resilience through restructuring and regulatory improvements. The rise of digitalization and fintech presents opportunities to enhance financial inclusion and efficiency, although their success relies on advancing financial literacy. This study contributes to the literature by providing updated empirical evidence on the factors influencing bank profitability within an emerging economy’s distinctive institutional and economic context. Full article

Adequate and diverse diets are essential for children’s physical and cognitive development, yet food insecurity and malnutrition continue to threaten this fundamental right, which remains a pressing concern in many resource-poor settings. This study investigated food and nutrition security in Early Childhood Development (ECD) centres in Makhanda, South Africa, through a community-based participatory research approach. Using a mixed-methods approach combining questionnaire interviews, focus group discussions, direct observations, and community asset mapping across eight ECD centres enrolling 307 children aged 0–5 years, the study engaged ECD facilitators and analysed dietary practices across these centres. Results indicated that financial constraints severely affect the quality and diversity of food provided at the centres, thus undermining the ability to provide nutritionally adequate meals. The average amount spent on food per child per month at the centres was R90 ± R25 (South African Rand). Although three meals were generally offered daily, cost-driven dietary substitutions with cheaper, less diverse alternatives, often at the expense of nutritional value, were common. Despite guidance from Department of Health dieticians, financial limitations contributed to suboptimal feeding practices, with diets dominated by grains and starchy foods, with limited access to and rare consumption of protein-rich foods, dairy, and vitamin A-rich fruits and vegetables. ECD facilitators noted insufficient parental contributions and low engagement in supporting centre operations and child nutrition provision, indicating a gap in awareness and limited nutrition knowledge regarding optimal infant and young child feeding (IYCF) practices. The findings emphasise the need for sustainable, multi-level and community-led interventions, including food gardening, creating ECD centre food banks, parental nutrition education programmes, and enhanced financial literacy among ECD facilitators. Strengthening local food systems and establishing collaborative partnerships with communities and policymakers are essential to improve the nutritional environment in ECD settings. Similarly, enhanced government support mechanisms and policy-level reforms are critical to ensure that children in resource-poor areas receive adequate nutrition. Future research should focus on scalable, locally anchored models for sustainable child nutrition interventions that are contextually grounded, community-driven, and should strengthen the resilience of ECD centres in South Africa. Full article

This study explores the drivers and evolution of the shadow economy in Bosnia and Herzegovina—a transitional, post-conflict country facing persistent institutional fragility. Using the Multiple Indicators and Multiple Causes (MIMIC) model, an extension of Structural Equation Modeling, the paper estimates the size and dynamics of the shadow economy from 1996 to 2022. The model integrates macroeconomic indicators (employment rate, GDP per capita, tax revenues) and institutional variables (rule of law, control of corruption), with data primarily sourced from the World Bank. The results show that institutional quality, tax burden, and labor market conditions are significant determinants of the informal sector. The model demonstrates strong statistical validity (CFI = 0.986, RMSEA = 0.05), supported by robustness checks including unit root tests, structural break analysis, and the exclusion of controversial benchmarking methods. The shadow economy responds markedly to major shocks such as the 2008 global financial crisis and the 2014 floods. Findings provide valuable policy insights: strengthening institutions, simplifying tax systems, and encouraging formal labor market participation can significantly reduce informality. The study supports evidence-based reforms to enhance transparency, resilience, and sustainable development in Bosnia and Herzegovina. Full article

The Middle East and North Africa (MENA) region has faced challenges like political instability and economic fluctuations, which have impacted non-performing loans (NPL) levels. At the same time, over the years, reforms and regulations have encouraged stronger board structures to enhance corporate governance and improve risk management. The purpose of this paper is to investigate how board characteristics affect non-performing in the MENA region. Board characteristics shape governance quality, which influences risk management and reduces banks’ risk-taking behaviours. Hence, effective governance can reduce non-performing loans by improving oversight and credit decisions. To this end, we used a sample of 70 banks operating in 12 countries in the MENA region from 2010 to 2022. The System Generalized Method of Moments (SGMM) was employed as an empirical technique. To benefit from a comparative analysis, we divided the entire sample into two subsamples. The first subsample covers six Gulf Cooperation Council (GCC) countries with 42 banks. The second subsample is also relative to six non-Gulf Cooperation Council (non-GCC) countries with 28 banks. The empirical findings indicate that the presence of independent board members, a higher number of female board members, board remuneration, and the board index decrease NPLs across all regions, including MENA, GCC, and non-GCC. However, we found that board size, tenure, and duality increase NPLs. The results of this paper are beneficial for both policymakers and bankers, as they provide insights into how governance through board characteristics influences credit risk. These results support better decision-making in board appointments and governance practices to improve risk management and reduce non-performing loans. Full article

Information asymmetry between banks and enterprises in the credit market is essentially the microfoundation of financial risk generation. The frequent occurrence of corporate debt defaults, mainly due to the behavior of short-term debt for long-term use (hereinafter referred to as “SDLU”), further aggravates the contagion path from individual liquidity crisis to systemic repayment crisis. In order to test whether bank financial technology (hereinafter referred to as “BankFintech”) can mitigate SDLU and reduce the possibility of financial risks, this study matched the loan data of China’s A-share listed companies with the patent data of bank-invented Fintech from 2013 to 2022 to construct the BankFintech Development Index for empirical analysis. The empirical results show that the development of BankFintech can significantly inhibit SDLU. The mechanism test reveals that BankFintech reduces bank credit risk and liquidity risk by lowering firms’ risk-weighted assets, improving capital adequacy and liquidity ratios, tilts banks’ lending preferences toward duration-matched long-term financing, and “forces” enterprises to take the initiative to improve their financial health and information transparency, enhance their ability to obtain long-term loans, and realize the active management of mismatch risk. Heterogeneity analysis finds that the effect is more significant in non-state-owned enterprises and technology-intensive industries. Further analysis shows that the level of enterprise digitization, the intensity of financial regulation, and related financial policies significantly moderate the marginal effect between the two. This study verified the “Porter’s Risk Mitigation Hypothesis” of Fintech, providing empirical evidence for effectively cracking the financial vulnerability caused by debt maturity mismatch and deepening financial supply-side reform. Full article

This study explores the integration of Sámi traditional knowledge in Norwegian science education, addressing the challenges that are faced by teachers who are unfamiliar with Sámi culture. The research employs action research methods, involving student teachers and teacher educators, to develop teaching units focused on Coastal Sámi topics. The study highlights the use of Banks’s multicultural curriculum reform approaches to analyze how Indigenous perspectives were incorporated. The key findings reveal that while efforts were made to include Coastal Sámi concepts, the integration often remained superficial. This study underscores the need for comprehensive teacher training and resources to effectively teach Indigenous topics. The conclusions emphasize the importance of a transformative approach to education that authentically incorporates diverse perspectives, advocating for systemic support to enhance teachers’ ability to deliver culturally relevant education. The research calls for collaboration among policymakers, teacher educators, and the Sámi community to ensure meaningful integration of Indigenous knowledge in curricula, fostering a deeper understanding and appreciation of Sámi culture and sustainability practices. Full article

The paper examines the key determinants of European banks’ profitability by analyzing the return on assets (ROA), return on equity (ROE), net interest margin (NIM), and the risk-adjusted measures of profitability, RAROAA and RAROAE, across 34 European countries during the period from 2013 to 2018—a time characterized by economic recovery and significant regulatory reforms, including the implementation of Basel III standards. Using the Generalized Method of Moments (GMM) approach and data of 3076 European banks, the research addresses the complex interplay between internal (bank-specific) factors and external factors, including macroeconomic and industry-specific factors. The results show that profitability is positively associated with a higher capital adequacy, liquidity risk, and income diversification, but not for risk-adjusted profitability ratios. Credit risk, management efficiency, and excessive size have a negative effect on all studied profitability measures. Macroeconomic conditions, in particular, GDP growth and inflation, also have a significant impact on profitability. The findings offer valuable insights for policymakers, regulators, and financial institutions aiming to enhance profitability while maintaining the stability of the European banking sector. Full article

The banking sector in Indonesia is currently growing and developing. This is due to the Indonesian Financial Services Authority (OJK) implementing reforms to strengthen the banking sector and enhance financial stability. One of the reforms is in the form of regulation that categorizes banks into four special categories based on core capital. This study aimed to analyzing the relationship between the efficiency and competitiveness of BUKU 1 to IV banks and KBMI 1 to IV banks in Indonesia. The data in this study were collected from journals, scientific articles, banking statistics, and financial reports of all banks based on KBMI (formerly BUKU) published by the Financial Services Authority (OJK) and the Indonesia Stock Exchange (IDX) for the period from 2018 to 2023. The results found there are no significant changes in patterns within the BUKU and KBMI groups. However, in the KBMI 4 group, a positive correlation between competitiveness and efficiency is observed, meaning that an increase in efficiency will be followed by an increase in a bank’s competitiveness. This group has the same pattern as the KBMI 1 and KBMI 3 groups. Meanwhile, the KBMI 2 group still follows the same pattern as in the BUKU 2 group, where an increase in efficiency is accompanied by a decrease in competitiveness, and vice versa; an increase in competitiveness will be followed by a decrease in a bank’s efficiency. Full article

The World Bank (WB) has described the European Union (EU) as a convergence machine, and the real and institutional convergence has been achieved for a long period of time, and EU’s cohesion policy, alongside the Recovery and Resilience Facility (RRF), remains crucial for driving reforms and fostering investments that promote growth. But, in the last two decades this convergence machine has stopped working, and the convergence process has turned in the divergence. The divergence process poses a great risk for the smooth functioning of the EU, and it increases vulnerability of the EU to negative economic shocks. Productivity and institutional convergence are a necessary precondition for the smooth functioning of the EU, reducing differences in standards of living, increasing resilience, and achieving environmental sustainability. In the present paper, we will apply log t-test over the period 2003–2023 to investigate the formation of productivity and institutional convergence clusters. Our goal is to identify which countries belong to the poor productivity/institutional clubs, and to provide the necessary policy implications. Results indicate the existence of multiple steady states, which means that EU is vulnerable to external economic shocks Full article

This study addresses the critical challenge of predicting liquidity risk in the banking sector, as emphasized by the Basel Committee on Banking Supervision. Liquidity risk serves as a key metric for evaluating a bank’s short-term resilience to liquidity shocks. Despite limited prior research, particularly in anticipating upcoming positions of bank liquidity risk, especially in Iranian banks with high liquidity risk, this study aimed to develop an AI-based model to predict the liquidity coverage ratio (LCR) under Basel III reforms, focusing on its direction (up, down, stable) rather than on exact values, thus distinguishing itself from previous studies. The research objectively explores the influence of external signals, particularly news sentiment, on liquidity prediction, through novel data augmentation, supported by empirical research, as qualitative factors to build a model predicting LCR positions using AI techniques such as deep and convolutional neural networks. Focused on a semi-private Islamic bank in Iran incorporating 4,288,829 Persian economic news articles from 2004 to 2020, this study compared various AI algorithms. It revealed that real-time news content offers valuable insights into impending changes in LCR, particularly in Islamic banks with elevated liquidity risks, achieving a predictive accuracy of 88.6%. This discovery underscores the importance of complementing traditional qualitative metrics with contemporary news sentiments as a signal, particularly when traditional measures require time-consuming data preparation, offering a promising avenue for risk managers seeking more robust liquidity risk forecasts. Full article

The shadow economy’s size and impact remain subjects of extensive research and debate, holding significant implications for economic policy and social welfare. In Lebanon, the ongoing crisis since 2019 has exacerbated severe economic challenges, with the national currency’s collapse, bank crisis, and foreign reserve deficits. The World Bank reports Lebanon’s financial deficit surpassed $72 billion, three times the GDP in 2021. Despite a drastic decline in GDP, imports have surged to near-pre-crisis levels, exacerbating economic woes and indicating a constant outflow of foreign currencies. Considering such contracting facts, this paper aims to investigate global factors influencing the shadow economy and discern their manifestations in Lebanon during financial crises. Our methodology involves a comprehensive literature review, alongside a case study approach specific to Lebanon. This dual-method strategy ensures a detailed understanding of the shadow economy’s impact and the development of actionable insights for policy and economic reform. Through this approach, we seek to contribute to a nuanced understanding of Lebanon’s economic landscape and provide valuable guidance for policy decisions aimed at reducing corruption, promoting transparency, and fostering a robust formal economy. The increase in the shadow economy raises the formal economy risk, as resources and activities diverted to informal channels hinder the growth and stability of the official economic sector. Although focusing on Lebanon, this analysis deepens the comprehension of the economic landscape and provides valuable guidance for policymakers, researchers, and stakeholders, aiming to address the root causes of informal economic activities and promote sustainable growth in developing countries in general. Full article

This paper investigates the complex factors hindering entrepreneurial aspirations in Lebanon, focusing on the absence of a functional financial system and its impact on entrepreneurial intentions. Drawing on surveys conducted with 325 Lebanese participants across three generations, using ordinal regression, the research reveals crucial determinants of entrepreneurial intentions, emphasizing the roles of entrepreneurial attitude, the absence of banking sector services, optimism, risk propensity, and age. Positive attitudes and optimism correlate with stronger intentions; however, the weakened economic situation and lack of a functional financial system diminish this positive correlation. Demographic factors like gender and education do not significantly influence intentions. In addition, the study reveals differences in entrepreneurial intentions determinants across the three generations of X, Y, and Z. This study underscores the urgent need for financial system reforms in Lebanon to enhance stability while advocating for financial literacy programs and private sector initiatives to empower entrepreneurs and expand their businesses. Full article

In recent years, investors have increasingly focused on the environmental, social, and governance (ESG) performance of businesses, driven by the rising importance of social and environmental challenges. This trend highlights the critical role of ESG factors in the financial sector. This study leverages stakeholder theory, risk management theory, and ESG investment theory, utilising financial data and ESG scores from Chinese listed banks to comprehensively analyse ESG elements and examine their impact on the liquidity risk of commercial banks. The results show that: (1) Enhanced ESG performance can mitigate liquidity risk in commercial banks by reducing the proportion of non-performing loans and improving overall financial performance. (2) By standardising and implementing sustainable business practices, ESG elements can improve commercial banks’ liquidity management levels and lessen the incidence and effects of liquidity risk. As a result, it is critical to lower banks’ liquidity risk and support the long-term growth of commercial banks from five angles: information disclosure, differentiated reform, digital transformation, education and training, and international cooperation. Full article