Despite massive investments in mitigation capabilities, financial crime remains a trillion-dollar global issue with impacts that extend well beyond the financial services industry. Worldwide, there are between $800 billion and $2 trillion laundered annually with the United States making up at least $300 billion of that figure. Although it is not possible to measure money laundering in the same way as legitimate economic activity, the scale of the problem is considered enormous. The cybersecurity landscape is always shifting, with threats becoming more sophisticated all the time. Managing risks in the banking and financial sectors requires a thorough understanding of the evolving risks as well as the tools and practical techniques available to address them. Cybercrime is a global problem, which requires a coordinated international response. This book outlines the regulatory requirements that come out of cyber laws and showcases the comparison in dealing with AML/CFT and cybersecurity among the G-20, which will be of interest to scholars, students and policymakers within these fields.

Written by two leading experts on multinational accounting and billion-dollar international investment funds, this book provides a framework for a global reform of the world monetary system, and defines a decidedly new approach to dealing with public debt mortgage, an issue that we can see in many countries in Europe and around the world. The authors put forward a proposal for transforming sterile financial masses, which are withdrawn from the real economy as they no longer bear interest, into wealth. To facilitate this return to the real economy, the authors propose that a significant share of public debt be converted into net equities in the world of business and goods production in order to find new profitable investment projects. The idea is bold, and the authors strive to demonstrate its technical feasibility. They are convinced that this approach can accompany and enhance a movement that has already begun, namely the implementation of vast national and international investment programs in major infrastructures and research projects in innovative sectors. This work builds on the authors’ two previous books, which focus on the monetary system. The first, published in 2010 and including a foreword by former French Finance Minister Christine Lagarde, analyzes the new virtual dimension of money. The second, published in 2014, puts forward an innovative proposal for a new financial regulation aimed at more stable economies. This third book is intended for professionals in the financial industry, including decision makers at banks, accounting and private equity firms, as well as policymakers at central banks and government institutions involved in the implementation of financial and monetary reforms.

This book analyses the new strategic decisions of the European Central Bank. Contributors from different fields examine especially the sustainability strategy of the ECB: What role can the European Central Bank play in fighting climate change?  ECB President Christine Lagarde has repeatedly confirmed that the central bank wants to play a role in coping with climate change. What will this role be? What instruments does the ECB have to make a difference in challenges such as the defossilization of the economy and transport, biodiversity, the energy transition, resource consumption and other sustainability areas? Is it entitled or obliged to go beyond the classic mandate of maintaining price stability? The volume includes contributions from academics and practitioners from the financial sector, civil society and institutions involved at European level.

This book presents the best papers from the 3rd International Conference on Mathematical Research for Blockchain Economy (MARBLE) 2022, held in Vilamoura, Portugal. While most blockchain conferences and forums are dedicated to business applications, product development or Initial Coin Offering (ICO) launches, this conference focuses on the mathematics behind blockchain to bridge the gap between practice and theory. Blockchain Technology has been considered as the most fundamental and revolutionising invention since the Internet. Every year, thousands of blockchain projects are launched and circulated in the market, and there is a tremendous wealth of blockchain applications, from finance to healthcare, education, media, logistics and more. However, due to theoretical and technical barriers, most of these applications are impractical for use in a real-world business context. The papers in this book reveal the challenges and limitations, such as scalability, latency, privacy and security, and showcase solutions and developments to overcome them.

This open access book examines the history and role of money. Money is often defined in terms of three interrelated functions: as a medium of exchange, store of value and unit of account. Researchers frequently discuss the first two functions, but tend to ignore unit of account. This book focuses on how a unit of account or denomination can be defined and can be derived from the monetary system. In the case of paper money and coins, we know how to determine the denomination of money based on the problem of the least number of weights defined by Bachet and proved by Hardy and Wright (1960). However, in the case of digital or cryptocurrency, denomination may not matter because digital or cryptocurrency uses a wallet that is essentially denomination free: a wallet can contain any amount of currency without upper and lower limits. When people talk about the stablecoin, i.e. the stable price of digital and cryptocurrency with the major legal tender, they take a unit of account or denomination of digital or cryptocurrency as given. This arrangement destroys the nature of denomination free or decentralized autonomy as it were. Exploring how we can consolidate with these two views of denomination, this book will appeal to anyone interested in creating new digital or cryptocurrencies. It also serves as a textbook on central bank digital currency.

This book discusses the transformation of the banking industry, particularly after a number of recent shocks: 2008 financial crisis, 2012 Euro-sovereign crisis, the pandemic COVID-19 crisis, the technological revolution, and reputational problems in banking due to climate risk and ESG (Environmental, Social and Governance) metrics. The book emphasizes two post-pandemic issues: the role of financial education and inclusive finance, and responsible banking and ESG priorities. Individual chapters analyse how the pandemic shed new light on social and governance responsibilities: Major issues include the importance and efficiency of financial education, and the impact of ESG programs on firms’ value, banks’ probability of default, bank business models and reputation risk. The book also addresses investors’ behaviour and the factors which may bias financial disclosure and reporting. By addressing whether the post-2008 crisis bank restructuring has effectively created a resilient and sustainable banking system – mostly from the European market’s perspective – the book will be of interest to researchers, academics, policy makers, and professionals of banking and financial institutions.

How might one determine if a financial institution is taking risk in a balanced and productive manner? A powerful tool to address this question is economic capital, which is a model-based measure of the amount of equity that an entity must hold to satisfactorily offset its risk-generating activities. This book, with a particular focus on the credit-risk dimension, pragmatically explores real-world economic-capital methodologies and applications. It begins with the thorny practical issues surrounding the construction of an (industrial-strength) credit-risk economic-capital model, defensibly determining its parameters, and ensuring its efficient implementation. It then broadens its gaze to examine various critical applications and extensions of economic capital; these include loan pricing, the computation of loan impairments, and stress testing. Along the way, typically working from first principles, various possible modelling choices and related concepts are examined. The end result is a useful reference for students and practitioners wishing to learn more about a centrally important financial-management device.

The cooperative banks' business model is unique in the financial market. It is featured by democratic foundations (one-head-one-vote principle), proximity to the members and the community they serve, limited profit-seeking nature, and prudent management. However, these principles are applied in a variety of organisational structures and economic and regulatory contexts, making cooperative banks significantly different from one country to another. This book expands existing knowledge on the European cooperative banking sector by analysing recent trends affecting cooperative banks. Namely, the book discusses the role of cooperative banks in the policy and societal movement towards sustainability, including in adopting sustainable finance practices. It explores the digital transformation journey of cooperative banks and the impact of the consolidation of Fintech players in the financial services markets. It further showcases the need to evolve the cooperative banks' governance structures and processes in order to foster (and in some cases restore) democracy and transparency in the decision-making. Lastly, the book debates the specific role of cooperative banks in the economic crisis that has followed the unfolding of the Covid-19 pandemic vis-a-vis their members and the communities they serve. Of interest to scholars, professors, students, and practitioners of banking and finance, this book will build on the existing research and explore the latest trends in the space.

Since the 2007 2008 global financial crisis, there has been much debate about the role of financial regulation and the causes of financial instability in the industry. Where studies commonly question the value of a regulated rather than free market , this book focuses on the differentiation of 'good regulation' and 'bad regulation'. This book highlights the need for financial regulation to combat corruption, and the integral link that exists between corruption and financial instability. The author evaluates the benefits and shortcomings of specific types of regulation, drawing on recent examples to illustrate each argument. The book presents compelling arguments for the regulation of leverage, liquidity, payday loans and securitisation; and debates the negative aspects of the regulation of short selling, and high-frequency trading, and of Basel-style banking regulation. The author argues that there is no free-market solution to financial instability, and rejects the idea of 'too big to fail'.

Participation in risk and reward, as an alternate to conventional risk-transfer finance, is important for achieving the higher ethical objectives of Islamic finance, called maqasid al shariah, and responsible finance in general. That is why participatory finance is advocated as the ideal form of financing and the essence of Islamic banking and finance. The Participatory Islamic Finance: The Ideals, Contemporary Practices, and Innovations presents a holistic view of both theory and practice of participatory models, constraints to its applications, success case studies of the participatory finance from multiple countries, and more importantly the recent innovations in participatory finance products. These new insights makes, the Participatory Islamic Finance: The Ideals, Contemporary Practices, and Innovations is an essential read and guide, for both Islamic finance academics and practitioners.

The book covers alternative lending using the emergence of Debt Funds in the EU as a case study. The book explores the risks that they can pose to financial stability, and the regulatory and supervisory tools available to mitigate these risks. Through this analysis, the book uncovers the risks and potential risk mitigation tools that can be applied to the alternative lenders-including debt funds and other potential alternative lenders. After identifying the reasons behind the growth of alternative lenders (using as example the assets of Alternative Investment Funds (AIFs) and in particular debt funds) and the simultaneous decrease of the banks' assets, the book analyses the systemic importance of the alternative lenders and the risk channels through which the systemic risk can spread to the banking sector and the financial system. Then, the book deals with the financial innovation-market failure theory and demonstrates that financial innovations (e.g. debt funds, securitisations) can cause market failures, resulting in regulatory interventions. Of interest to banking and financial regulation academics, researchers, and practitioners this book analyses the regulatory provisions in place for both credit institutions and debt funds, including the Basel Accords, the Capital Requirements Directives and Regulations, and the Alternative Investment Fund Managers Directive (AIFMD) and its implementation in various EU jurisdictions, before offering a proposal for a new three-defensive framework applicable to debt funds and to other potential alternative lenders.

Microfinance is a renowned albeit controversial solution for giving financial access to the unbanked, even if micro-transactions increase costs, limiting outreach potential. The economic and financial sustainability of Microfinance Institutions (MFIs) is a prerequisite for widening a potentially unlimited client base. Automation decreases costs, expanding the outreach potential, and improving transparency and efficiency. Technological solutions range from branchless mobile banking to geo-localization of customers, digital/social networking for group lending, blockchain validation, big data, and artificial intelligence, up to "MicroFinTech" - FinTech applications adapted to microfinance. Of interest to both scholars, students, and professors of financial technology and microfinance, this book examines these trendy solutions comprehensively, going beyond the existing literature and showing potential applications to the traditional sustainability versus outreach trade-off.

Why is finance so important? How do stock markets work and what do they really do? Most importantly, what might finance be and what could we expect from it? Exploring contemporary finance via the development of stock exchanges, markets and the links with states, Roscoe mingles historical and technical detail with humorous anecdotes and lively portraits of market participants. Deftly combining research and autobiographical vignettes, he offers a cautionary tale about the drive of financial markets towards expropriation, capture and exclusion. Positioning financial markets as central devices in the organisation of the global economy, he includes contemporary concerns over inequality, climate emergency and (de)colonialism and concludes by wondering, in the market's own angst-filled voice, what the future for finance might be, and how we might get there.

Data analytics underpin our modern data-driven economy. This textbook explains the relevance of data analytics at the firm and industry levels, tracing the evolution and key components of the field, and showing how data analytics insights can be leveraged for business results. The first section of the text covers key topics such as data analytics tools, data mining, business intelligence, customer relationship management, and cybersecurity. The chapters then take an industry focus, exploring how data analytics can be used in particular settings to strengthen business decision-making. A range of sectors are examined, including financial services, accounting, marketing, sport, health care, retail, transport, and education. With industry case studies, clear definitions of terminology, and no background knowledge required, this text supports students in gaining a solid understanding of data analytics and its practical applications. PowerPoint slides, a test bank of questions, and an instructor's manual are also provided as online supplements. This will be a valuable text for undergraduate level courses in data analytics, data mining, business intelligence, and related areas.

Risk is the main source of uncertainty for investors, debtholders, corporate managers and other stakeholders. For all these actors, it is vital to focus on identifying and managing risk before making decisions. The success of their businesses depends on the relevance of their decisions and consequently, on their ability to manage and deal with the different types of risk. Accordingly, the main objective of this book is to promote scientific research in the different areas of risk management, aiming at being transversal and dealing with different aspects of risk management related to corporate finance as well as market finance. Thus, this book should provide useful insights for academics as well as professionals to better understand and assess the different types of risk.

The monetary system is at a turning point. The question is no longer if, but how soon countries will roll out a Central Bank Digital Currency (CBDC). This book discusses the recomposition of the money supply from the present bank money regime to a monetary system determined by CBDC. As the book sets out, the future of money is going to be digital and sovereign. Nonetheless, the relationship between the various types of money is competitive rather than being the peaceful coexistence that was officially envisaged. CBDC competes with the incumbent bank money as well as with private cryptocurrencies that are challenging both central-bank money as well as bank money. For technological and political reasons, bank money will not be able to emulate the superior properties of sovereign digital tokens. Uncovered and unwarranted cryptocurrencies, too, will not stand the competition in the long run. The shifts in the monetary system are changing the role of central banks in the interplay of monetary, fiscal and private-creditary functions and open up improved options for monetary policy. The book will be of interest to academics, researchers, and policymakers in monetary and financial economics, and digital currencies.

The book explains the impact of bank business models on company business models by discussing the relationship among banks decision-making processes, sustainable values creation in company business models, and ESG risk. The monograph provides a combination of financial and management-related activities, in the context of bank business models, taking into account the concept of sustainability, and will be of particular interest to both in-house practitioners, giving them innovative knowledge about the models presented and used, and to students and young researchers. The project is financed within the framework of the program of the Minister of Science and Higher Education under the name "Regional Excellence Initiative" in the years 2019 - 2022; project number 001/RID/2018/19; the amount of financing PLN 10,684,000.00.

This book details the difference between the two rating industries, but this difference is converging all the time. The concept of investing in a more responsible and sustainable manner is drawing in some of the world's leading investors and, with it, regulations and policies are developing at the highest levels. However, the market is not getting what it needs to fully submit to the concept of responsible investing. It has called for more to be done from those tasked with injecting information into their processes, and two industries in particular have been identified as being natural partners. It has been suggested that they are on a collision course to serve the mainstream investor, and in this book, that collision course is contextualised, explained, presented, and finally its outcome predicted.

This book offers new insights and perspectives on the financial and banking sector in Europe with a special focus on Central and Southeastern European countries. Through quantitative and qualitative analysis of primary sources and datasets, the book examines both the financial development and performance of the real sector of the economy and the impact and involvement of the banking sector. The contributions offer new insights into current financial innovations and discuss best practices in innovative financial solutions. They also highlight new perspectives in finance and analyze characteristic problems in the real and banking sectors in various European countries. The insights and financial solutions presented in this book will be of interest to scholars of finance and financial economics as well as practitioners in the financial industry and policy makers.

This book encourages insurance companies and regulators to explore offering Islamic insurance to boost the insurance industry in India. The distinctive features of Takaful also make it appealing even to non-Muslims. According to the 2012 World Takaful Report, India has immense potential for Takaful is based on the size of its Muslim population and the growth of its economy. However, it is surprising that Takaful has yet to be introduced in India since it has been offered in non-majority Muslim countries, such as Singapore, Thailand, and Sri Lanka. When the concept and practice of Takaful are examined, it is free from interest, uncertainty, and gambling. These are the main elements prohibited in Islam. However, it has been evidenced that these elements are also banned in teaching other religions believed by the Indians. Given this landscape, this book fills the gap in research on the viability of Takaful in India, focusing on its empirical aspects by examining the perception of Indian insurance operators toward Takaful.

This book explores gender diversity in the financial system, focusing especially on regulations, disclosure standards, theories and literature on the relationship between women in atypical positions and bank performance, female representation in governance bodies of banks and insurance companies, the gender pay gap and the gender balance in Central Banks. The topics are examined highlighting the progress towards gender equality (SDG 5) and the room for improvement in financial services with implications for policymakers, regulators and researchers in both finance and gender studies.

Addressing a need for innovative solutions to challenges facing organisations today, this book explores the concept of Knowledge Risk Management (KRM), outlining how this new approach can be implemented in the banking sector. The author proposes the first knowledge risk framework that is specific to cooperative banks, which aims to improve the accuracy of risk assessment procedures by combining a conventional risk management approach with knowledge management tools and techniques. Including empirical data taken from interviews with employees in the banking sector, this book provides banks with a valuable tool for tackling potentially damaging knowledge-related risks, making it an essential read for those researching risk management and banking.

The authors bring the disciplines of accounting and economics to bear on an examination of the critical role played by the major accounting firms in the ongoing economic recovery of Pacific Rim nations from the Asian financial crisis of the late 1990s. Accounting firms, through their service offerings, are having an impact not only on economic indicators, but also on longer-term growth prospects and development patterns in the newly industrialized nations of Southeast Asia (Hong Kong, Singapore, South Korea, and Taiwan), emerging nations (Malaysia, Thailand, the Philippines, and Indonesia) and selected Pacific island nations (including Papua New Guinea, Fiji, and Vanuatu). For practitioners in the private and public sectors and their academic colleagues.

Demonstrating the full extent of the influence of global accounting firms on Pacific economies, the authors provide an overview of domestic accounting institutions for each grouping of nations in order to lend valuable context to the discussion of the role of international services firms in each individual jurisdiction. For those whose work or academic accounting services in Southeast Asia, or the role in the region of the World Bank, the International Monetary Fund, and various regional development banks and United Nations agencies.

This book provides perspectives on the latest developments and pertinent issues in the Indian financial sector in current times. The reforms initiated in the nineties in the financial sector have transformed the way financial markets and institutions function today. However, certain sectors like banking, and markets like the capital market have undergone sea changes. The research contributions in this book focus on the issues pertaining to such sectors like banking, NBFCs and the stock market. The opening up of financial markets and emergence of institutional investors have been a significant phenomenon in the Indian context. At this backdrop of increasing financial integration, the impact of financial liberalisation on the overall development of the sector, and how the global policies and events influence the Indian financial sector, are analysed in the book. The emergence of new regulations in the capital markets to instill more discipline and transparency, have also changed the way corporates take financing decisions. For example, regulatory authorities are continuously reviewing norms pertaining to issues like promoters' shareholding owing to risks arising from excessive leverage and the linkages between financial intermediaries. Corporate governance, environmental aspects are some important additions in corporate financing norms in the recent past. The book incorporates a discussion on this, too. Apart from these, the book also has incorporated several aspects on an emerging concept called financial inclusion, its measurement and constraints to achieve the same. And finally, at the backdrop of the disruption created by the COVID-19 pandemic, the impact on the Indian capital market is also discussed. Contributions are based on rigorous empirical research and incorporate the perspectives of renowned academicians in the field of finance and financial economics across the country. Apart from the research community, this book will also be helpful for financial analysts working in the financial sector to have some idea about the current issues, the direction of research on those issues and different perspectives on them.

This book analyses the use of qualitative and quantitative content analysis methodologies for risk disclosure practices in the European banking industry. While doing so, it assesses the level of transparency of financial and non-financial reports by focusing on the information disclosed to the public with reference to risk exposure and management. By drawing upon both qualitative and quantitative techniques, the book proposes two different methodological approaches to assess the information European financial institutions provide to the public with reference to the risk disclosure and derivative disclosure in their annual financial reports. These methodologies are subsequently employed to carry out empirical analyses on samples of European banks. By exploiting the points of strength of both qualitative and quantitative content analysis methodologies, this book offers insights into the advantages and disadvantages of these methodologies. The book is a must-read for academics and researchers that analyze disclosure practices of financial and non-financial firms, as well as financial analysts and other practitioners that are interested in assessing the level of transparency and evaluating the disclosures of financial and non-financial firms, especially, but not exclusively, with reference to risk disclosure and derivative disclosure.