Cryptographic tools like Hill's encryption algorithm protect digital data. In this work, we present a novel Hill cipher security method that utilizes Gaussian integers from number theory. Using these ...intriguing mathematical entities to disguise plaintext values dramatically boosts assault resistance and duration. This research includes a three-pass protocol for encryption and decryption without key exchange, ensuring a safe, efficient, and dependable solution. Pandas is used for efficient data processing, and Numpy for computational tasks, notably matrices. Hill cipher-based encryption and decryption can be utilized in real life. It also demonstrates how to save Pandas DataFrame data to Excel. This strategy assures progress in cryptography. Uniquely designed for banking, it emphasizes its applicability and possible influence on present financial systems.
Assessment of alternative banking systems is a difficult problem with multiple and conflicting criteria. This study proposes a multi-criteria decision-making (MCDM) model for evaluating alternative ...social banking systems (with no interest charges) using a T-Spherical fuzzy Decision-Making Trial and Evaluation Laboratory (DEMATEL) called TOP-DEMATEL. First, a comprehensive literature review determines the factors affecting the performance of alternative systems. An analysis is carried out with the help of the T-Spherical fuzzy TOP-DEMATEL approach to determine the importance weights of the factors under consideration. The alternative social banking systems with no interest charges are designed to minimize the negative effects of interest on the economy. The causality analysis shows that the effective risk analysis and employment of qualified personnel were the most effective criteria on all other factors. In addition, the improvement of the technological infrastructure is also affected by all other factors. Effective risk analysis is determined as the most important criterion for the performance of the alternative banking system. In this context, a comprehensive risk analysis is required for the success of the new alternative banking system.
•The priority issues for alternative banking systems are identified.•T-Spherical fuzzy TOP-DEMATEL method is considered.•Effective risk analysis plays the most critical role.•The improvement of the technological infrastructure is crucial.•A comprehensive risk analysis is required for success.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
We propose an interacting particle system to model the evolution of a system of banks with mutual exposures. In this model, a bank defaults when its normalized asset value hits a lower threshold, and ...its default causes instantaneous losses to other banks, possibly triggering a cascade of defaults. The strength of this interaction is determined by the level of the so-called noncore exposure. We show that, when the size of the system becomes large, the cumulative loss process of a bank resulting from the defaults of other banks exhibits discontinuities. These discontinuities are naturally interpreted as systemic events, and we characterize them explicitly in terms of the level of noncore exposure and the fraction of banks that are “about to default.” The main mathematical challenges of our work stem from the very singular nature of the interaction between the particles, which is inherited by the limiting system. A similar particle system is analyzed in Ann. Appl. Probab. 25 (2015) 2096–2133 and Stochastic Process. Appl. 125 (2015) 2451–2492, and we build on and extend their results. In particular, we characterize the large-population limit of the system and analyze the jump times, the regularity between jumps, and the local uniqueness of the limiting process.
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The main objective of the paper is to assess the impact of reforms on bank profitability in the eleven banking systems from the Commonwealth of Independent States (all current or former members): ...Armenia, Azerbaijan, Republic of Belarus, Georgia, Kazakhstan, Kyrgyzstan, Republic of Moldova, Tajikistan, Turkmenistan, Ukraine and Uzbekistan, for the period between 2005 and 2011. We use as proxy for bank profitability the return on average equity (ROAE) and the return on average assets (ROAA). The estimations show that financial freedom and Banking sector reform indicators have a strong statistical significance and negatively impact the bank profitability. This could be explained by the fact that reforms increased competition with the consequence of diminishing profit margins and abnormal returns. However, the Regulatory quality indicator had no statistical significance, meaning that the laws are not enforced. Our secondary result is that Business Mix has a negative significant impact on ROAE, while management efficiency negatively influences both ROAA and ROAE.
This study investigates the relationship between diversification and Islamic banking systems' performance under the impact of the COVID-19 turmoil using a sample of 24 countries from 2013Q4 and ...2020Q4. The findings indicate that the performance of Islamic banking systems is positively associated with sectoral diversification of Shari'ah-compliant financing and income diversification. Although this study confirms a negative impact of the COVID-19 shock, income diversification is found to mitigate the adverse effect of this health crisis on the performance of the Islamic banking systems. In which, Sukuk investment is considered an essential channel for pursuing this diversification strategy. Therefore, this research has important implications for policymakers, managers, and academics.
Diversification, Sukuk investment, Islamic banking systems, Performance, COVID-19, Generalized method of moments (GMM).
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
Purpose
Cash-waqf is one of the transformative models of waqf assets submission to optimize the receipt of waqf of money in Indonesia. Currently, cash-waqf can be paid through the platforms that are ...integrated with digital sharia banking systems (DSBS) such as Jadiberkah.Id (Bank Syariah Mandiri), Digital Wakaf Hasanah (Bank Negara Indonesia Syariah) and other waqf online services provided by Bank Syariah Bukopin, Bank Commerce International Merchant Bankers Niaga and Bank Rakyat Indonesia Syariah. This study aims to investigate the role of DSBS in stimulating Muslim youth’s decision to endow cash-waqf in Indonesia.
Design/methodology/approach
This research involved 225 Muslim youth from several universities across the Special Province of Yogyakarta and Central Java as the research respondents. The analysis was conducted using partial least square structural equation modeling with WarpPLS 7.0.
Findings
The result of the structural model indicates that the research model is structurally good since it meets all model criteria. Perceived ease of use (PEU) is found as the most significant predictor of perceived usefulness (PU). Both generate a significant effect on Muslim youths’ attitudes toward DSBS. Overall, subjective norm (SN), perceived behavioral control (PBC), PU and attitudes are important determinants that lead individual decisions to use the online cash-waqf payment through DSBS. Finally, the research findings conclude that DSBS plays a significant role in encouraging the interest of young Muslim generations to participate in cash-waqf transactions.
Originality/value
This study seeks to contribute to the existing literature by enriching the discussion on DSBS’s service, especially in the context of optimizing the collection of Islamic Philanthropy through cash-waqf transaction. Also, this study integrates theory of planned behavior (TPB) and the technology acceptance model (TAM) into a single research model to explore the determinants of cash-waqf participation in digital era.
While operating side-by-side with conventional banks, in a dual-banking system, the systemic risk profile of Islamic banks can be different due to their unique business model. The objective of this ...study is to understand the evolution of systemic risk in dual-banking systems and determine whether there are any differences in the systemic risk profiles of conventional and Islamic banks during the COVID-19 pandemic. This study also identifies the determinants of systemic importance (measured using spillover indices) of financial institutions. The sample includes ten countries where the Islamic banking sector is considered systemically important and covers the period from November 2015 to November 2020. The empirical results indicate a significant increase in systemic risk, in the sample countries, during the first half which is followed by a recovery in the second half of 2020. Comparative analysis shows that Islamic banks have similar systemic vulnerabilities to systematic and idiosyncratic factors during the exogenously induced real economic shock of the COVID-19. However, Islamic banks pose significantly less spillover to others relative to conventional banks while earning abnormal returns. The results are robust to the inclusion of macroeconomic factors and alternate estimation methodologies. The findings of this study provide valuable insights for the regulators of dual-banking systems.
•Islamic banks' risk profiles are different due to their business model.•Evaluated systemic risk of countries with systemically important Islamic banking sector.•Identified the determinants of systemic importance of financial institutions.•Report a significant increase in systemic risk during the first half of 2020.•Islamic banks earn abnormal returns and are less likely to spillover to others.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
The specific nature of banking activities and its role for the economy of a country preserve a special way of organizing, being also the most regulated field. The regulation is given in each country ...by the national banking law, which is meant to create conditions for normal competition between credit institutions. For EU member states the legislative framework is given by the European directives transposed into national regulations. In an economy, banks (credit institutions in general) have a double role: the financial intermediation in saving-investing relationship, a decisive relationship for economic growth. In other words, banks attract resources and place them in the economy mainly by distributing credits; - Banks are the transmission mechanisms of monetary policy whose effectiveness depends on the state of health of the banking system and of the entire economy.
The aim of the paper is to review and discuss the implications of a new form of central bank money – retail central bank digital currency (CBDC) – for central and commercial banks, identified in the ...literature and by central banks. The author’s intention is also to indicate possible differences in the approach to this issue by researchers and individual central banks. The study is based on a review covering both academic literature and central banks official documents on retail CBDC. It also includes a comparative analysis of CBDC concepts (disregarding the level of implementation) outlined by 13 European and non-European central banks in their official reports. The study shows that the research papers and official reports by central banks are consistent as for the areas of influence of retail CBDCs on central banks and the banking sector. However, both do not give complete answers to questions about the consequences of CBDCs for banking systems, the economy and society. The analyses published by central banks do not provide, as one might assume, a greater level of detail and precision.
This article reviews the evidence on the importance of finance for economic well-being. It provides data on the use of basic financial services by households and firms across a sample of countries, ...assesses the desirability of universal access, and provides an overview of the macroeconomic, legal, and regulatory obstacles to access. Despite the benefits of finance, the data show that use of financial services is far from universal in many countries, especially developing countries. Universal access to financial services has not been a public policy objective in most countries and would likely be difficult to achieve. Countries can, however, facilitate access to financial services by strengthening institutional infrastructure, liberalizing markets and facilitating greater competition, and encouraging innovative use of know-how and technology. Government interventions to directly broaden access to finance, however, are costly and fraught with risks, among others the risk of missing the targeted groups. The article concludes with recommendations for global actions aimed at improving data on access and use and suggestions on areas of further analysis to identify constraints to broadening access.
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