Dwi Marlina Wijayanti, Hasan Al-Banna, Achmad Nurdany
The rapid growth of digital banks has been followed by changing customer behaviour patterns. On the other hand, customer perceptions of digital banks are that they still carry considerable risk. Therefore, the role of institutions in providing certainty and security guarantees for digital banking customers is very important. Based on this situation, this research explores what factors can encourage individuals to use digital banks, which are currently growing quite rapidly through the role of institutions. The Technological Acceptance Model (TAM) is used as a construct in exploring individual behaviour in reaction to technological innovation in digital banks. In addition, risk guarantees from government institutions are also explored as safeguarding customer security. The sample for this study were 977 digital bank users. Data was collected through a self-administered survey. The results show that perceived service quality (PSQ), service innovation (SI), perceived usefulness (PU), perceived ease of use (PEoU), attitude, and behavioural intentions are factors that encourage actual use of digital banking services. It is also known that perceived risk assurance moderates the relationship between attitude and behavioural intention. This research contributes to policy makers for the expansion of digital bank market share through appropriate marketing strategies for digital banks, as well as strategies to increase deposit insurance literacy.
{"title":"IMPROVING DIGITAL BANKING THROUGH RISK ASSURANCE: TAM MODIFICATION ANALYSIS","authors":"Dwi Marlina Wijayanti, Hasan Al-Banna, Achmad Nurdany","doi":"10.21098/jcli.v3i1.172","DOIUrl":"https://doi.org/10.21098/jcli.v3i1.172","url":null,"abstract":"The rapid growth of digital banks has been followed by changing customer behaviour patterns. On the other hand, customer perceptions of digital banks are that they still carry considerable risk. Therefore, the role of institutions in providing certainty and security guarantees for digital banking customers is very important. Based on this situation, this research explores what factors can encourage individuals to use digital banks, which are currently growing quite rapidly through the role of institutions. The Technological Acceptance Model (TAM) is used as a construct in exploring individual behaviour in reaction to technological innovation in digital banks. In addition, risk guarantees from government institutions are also explored as safeguarding customer security. The sample for this study were 977 digital bank users. Data was collected through a self-administered survey. The results show that perceived service quality (PSQ), service innovation (SI), perceived usefulness (PU), perceived ease of use (PEoU), attitude, and behavioural intentions are factors that encourage actual use of digital banking services. It is also known that perceived risk assurance moderates the relationship between attitude and behavioural intention. This research contributes to policy makers for the expansion of digital bank market share through appropriate marketing strategies for digital banks, as well as strategies to increase deposit insurance literacy.","PeriodicalId":292753,"journal":{"name":"Journal of Central Banking Law and Institutions","volume":"19 6","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139456891","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This article illustrates how Basel III, a soft law legal framework guiding how regulators supervise financial institutions in order to prevent and mitigate systemic financial crises, especially the requirement regarding the governance of sovereign debt, is being implemented in Indonesia. The analysis was done by scrutinising the relevant authority’s responses and monetary policy during COVID-19. Also, it examines whether the applicable regulations and other related policies align with the grand objectives of the financial sector. This article provides several important takeaways. First, benefiting from the soft traits of Basel III, the oversight authorities (OJK and BI) have tried to enshrine the government’s resilient and prudent financial state through flexibility. Second, instead of taking expansionary legal measures to stimulate the state’s income and limit the state’s expenses, BI and the government have worked together to contain the damage of the pandemic through a quasi-fiscal program (burden-sharing program, BSP). Third, the legislation of Law No. 3/2023 did not make the BI’s objective less risky. It also suggests that more could have been done to prevent the fiscal deficit, especially by the government, through fiscal consolidation (limiting or decreasing the state’s expenses).
巴塞尔协议三》是指导监管机构如何监督金融机构以预防和缓解系统性金融危机的软性法律框架，尤其是有关主权债务管理的要求，本文阐述了印尼是如何实施该协议的。分析是通过仔细研究相关当局在 COVID-19 期间的应对措施和货币政策来完成的。此外，文章还研究了适用法规和其他相关政策是否与金融部门的宏伟目标相一致。本文提供了几条重要启示。首先，得益于《巴塞尔协议 III》的软特质，监管当局（韩国司法厅和英国央行）试图通过灵活性来体现政府的弹性和审慎的金融状态。其次，商业银行和政府没有采取扩张性的法律措施来刺激国家收入和限制国家支出，而是通过一项准财政计划（负担分摊计划，BSP）来共同控制疫情造成的损失。第三，第 3/2023 号法律的立法并没有降低 BI 目标的风险。这也表明，本可以通过财政整顿（限制或减少国家开支）来防止财政赤字，尤其是政府的财政赤字。
{"title":"THE COVID-19 CONTAINMENT IN INDONESIA AND SOFT LAW: A RISK-TO-OBJECTIVE ANALYSIS","authors":"Adi Ibnu","doi":"10.21098/jcli.v3i1.175","DOIUrl":"https://doi.org/10.21098/jcli.v3i1.175","url":null,"abstract":"This article illustrates how Basel III, a soft law legal framework guiding how regulators supervise financial institutions in order to prevent and mitigate systemic financial crises, especially the requirement regarding the governance of sovereign debt, is being implemented in Indonesia. The analysis was done by scrutinising the relevant authority’s responses and monetary policy during COVID-19. Also, it examines whether the applicable regulations and other related policies align with the grand objectives of the financial sector. This article provides several important takeaways. First, benefiting from the soft traits of Basel III, the oversight authorities (OJK and BI) have tried to enshrine the government’s resilient and prudent financial state through flexibility. Second, instead of taking expansionary legal measures to stimulate the state’s income and limit the state’s expenses, BI and the government have worked together to contain the damage of the pandemic through a quasi-fiscal program (burden-sharing program, BSP). Third, the legislation of Law No. 3/2023 did not make the BI’s objective less risky. It also suggests that more could have been done to prevent the fiscal deficit, especially by the government, through fiscal consolidation (limiting or decreasing the state’s expenses).","PeriodicalId":292753,"journal":{"name":"Journal of Central Banking Law and Institutions","volume":"48 10","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139454811","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Adamu Idris Adamu, Ismaila Yusuf, Ahmed Jinjiri Bala
This study investigates how gender diversity and CEO culture affect sustainability performance in the banking industry. The sample used in the study was drawn from listed banks on the floor of the NGX group. The data were obtained from the Bloomberg Database with 88 firm-year observations (2011 to 2018). The regression estimate is based on a panel data approach. We found that female directors’ and CEOs’ cultures have greater tendencies to enhance sustainability performance proxied by ESG. Thus, the findings provide additional insight into the existing literature on sustainability and diversity initiatives as well as the resource dependency theory. It also adds to the existing literature on sustainability reporting. The findings, moreover, allude to the initiatives of the regulatory authority in the industry that emphasise the need to have a diversified board that includes female directors and other forms of diversity, for example, ethnicity.
{"title":"DO GENDER DIVERSITY AND CEO CULTURE AFFECT SUSTAINABILITY PERFORMANCE IN THE NIGERIAN BANKING INDUSTRY?","authors":"Adamu Idris Adamu, Ismaila Yusuf, Ahmed Jinjiri Bala","doi":"10.21098/jcli.v3i1.168","DOIUrl":"https://doi.org/10.21098/jcli.v3i1.168","url":null,"abstract":"This study investigates how gender diversity and CEO culture affect sustainability performance in the banking industry. The sample used in the study was drawn from listed banks on the floor of the NGX group. The data were obtained from the Bloomberg Database with 88 firm-year observations (2011 to 2018). The regression estimate is based on a panel data approach. We found that female directors’ and CEOs’ cultures have greater tendencies to enhance sustainability performance proxied by ESG. Thus, the findings provide additional insight into the existing literature on sustainability and diversity initiatives as well as the resource dependency theory. It also adds to the existing literature on sustainability reporting. The findings, moreover, allude to the initiatives of the regulatory authority in the industry that emphasise the need to have a diversified board that includes female directors and other forms of diversity, for example, ethnicity.","PeriodicalId":292753,"journal":{"name":"Journal of Central Banking Law and Institutions","volume":"24 16","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139456689","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Mounting geopolitical risks have led over time to a reorientation of trade integrations across different economic blocs. As one of the increasingly dominant global blocks, the organisation comprised of Brazil, Russia, India, China, and South Africa (BRICS) has intensified their trade integration. Therefore, we conducted a thorough analysis of how BRICS countries’ multilateral trade integration responded to geopolitical risk events from January 1996 to December 2021. To achieve this, we utilized a sophisticated econometric method, specifically the cross-quantilogram approach, to analyse high frequency data due to their non-normal and fat-tailed features. Our study confirms the proposition that geopolitical risks strengthened trade integration within the BRICS bloc. Specifically, our findings show that the volume of exports from one economy to another responded positively at lower to medium quantiles of exports and lower geopolitical risks, considering a 12–36-month horizon. Moreover, we found that the quantity of exports from Russia to China was higher in the presence of higher geopolitical risks. Our study demonstrates that geopolitical risks can create a sense of shared identity and mutual interest among the BRICS countries, fostering greater cooperation and trade integration.
{"title":"THE RESPONSE OF BRICS TRADE INTEGRATION TO GEOPOLITICAL RISKS","authors":"K. Sohag, Md Monirul Islam, Oleg Mariev","doi":"10.21098/jcli.v3i1.180","DOIUrl":"https://doi.org/10.21098/jcli.v3i1.180","url":null,"abstract":"Mounting geopolitical risks have led over time to a reorientation of trade integrations across different economic blocs. As one of the increasingly dominant global blocks, the organisation comprised of Brazil, Russia, India, China, and South Africa (BRICS) has intensified their trade integration. Therefore, we conducted a thorough analysis of how BRICS countries’ multilateral trade integration responded to geopolitical risk events from January 1996 to December 2021. To achieve this, we utilized a sophisticated econometric method, specifically the cross-quantilogram approach, to analyse high frequency data due to their non-normal and fat-tailed features. Our study confirms the proposition that geopolitical risks strengthened trade integration within the BRICS bloc. Specifically, our findings show that the volume of exports from one economy to another responded positively at lower to medium quantiles of exports and lower geopolitical risks, considering a 12–36-month horizon. Moreover, we found that the quantity of exports from Russia to China was higher in the presence of higher geopolitical risks. Our study demonstrates that geopolitical risks can create a sense of shared identity and mutual interest among the BRICS countries, fostering greater cooperation and trade integration.","PeriodicalId":292753,"journal":{"name":"Journal of Central Banking Law and Institutions","volume":"110 26","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139454203","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The financial sector has a key role to play in the transition to a more sustainable and low-carbon economy. Being major actors in the financial system, central banks can exert influence to encourage the adoption of green finance and reduce risks associated with climate change. A novel idea called "green central banking" aims to give central banks' operations, regulations, and goals more sustainability-related thought. This study explores the concept of "green central banking," which is just starting to gain traction, as well as potential central bank responsibilities and tasks in the field of sustainable finance. This study also emphasizes the difficulties and dangers of implementing green central banking, including the possible conflicts between financial stability and environmental goals. Also, the article provides a comparative examination of the methods used by central banks as it looks at the state of green central banking in various parts of the world. Ultimately, this study promotes central banks to take a proactive stance in the transition to a greener and more resilient financial system and believes that green central banking can be a critical tool for accomplishing sustainable development goals.
{"title":"GREEN CENTRAL BANKING: A NEW ROLE FOR THE CENTRAL BANKS IN THE FINANCIAL SYSTEM","authors":"Omer Faruk Tekdogan","doi":"10.21098/jcli.v2i2.170","DOIUrl":"https://doi.org/10.21098/jcli.v2i2.170","url":null,"abstract":"The financial sector has a key role to play in the transition to a more sustainable and low-carbon economy. Being major actors in the financial system, central banks can exert influence to encourage the adoption of green finance and reduce risks associated with climate change. A novel idea called \"green central banking\" aims to give central banks' operations, regulations, and goals more sustainability-related thought. This study explores the concept of \"green central banking,\" which is just starting to gain traction, as well as potential central bank responsibilities and tasks in the field of sustainable finance. This study also emphasizes the difficulties and dangers of implementing green central banking, including the possible conflicts between financial stability and environmental goals. Also, the article provides a comparative examination of the methods used by central banks as it looks at the state of green central banking in various parts of the world. Ultimately, this study promotes central banks to take a proactive stance in the transition to a greener and more resilient financial system and believes that green central banking can be a critical tool for accomplishing sustainable development goals.","PeriodicalId":292753,"journal":{"name":"Journal of Central Banking Law and Institutions","volume":"46 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131860778","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
We analysed the capacity for banks to fail in Indonesia. A “failed bank” can be decoded as a bank facing financial difficulties and possibility of collapse. It is no longer feasible for the LPP (Banking Supervisory Agency) to address bank failures under its current authority. In Indonesia, bank failures are managed by the Deposit Insurance Corporation (IDIC), helped by rules from Bank Indonesia and the Financial Services Authority (OJK). Under Article 5 of Law no. 24 of 2004 regarding the Deposit Insurance Corporation, one of the jobs of IDIC is to develop, specify and enforce a procedure for the liquidation of failing banks that do not have a systemic effect and address failing banks that do have a systemic effect. The definition of systemic effect is when a bank’s failure will have an extraordinary impact on the availability of funds and the smoothness and sustainability of the economy. While a non-systemic effect is bank’s failure that does not meet the standards noted above. The implication of our research is to provide an understanding that assistance for failing banks in Indonesia is taken over by the IDIC which will form an entity called a bridge bank.
{"title":"THE POSITION OF BRIDGE BANKS AS INSTRUMENTS FOR RESOLING BANK FAILURES IN INDONESIA","authors":"Zulfikar Hasan, Kamiluddin","doi":"10.21098/jcli.v2i2.162","DOIUrl":"https://doi.org/10.21098/jcli.v2i2.162","url":null,"abstract":"We analysed the capacity for banks to fail in Indonesia. A “failed bank” can be decoded as a bank facing financial difficulties and possibility of collapse. It is no longer feasible for the LPP (Banking Supervisory Agency) to address bank failures under its current authority. In Indonesia, bank failures are managed by the Deposit Insurance Corporation (IDIC), helped by rules from Bank Indonesia and the Financial Services Authority (OJK). Under Article 5 of Law no. 24 of 2004 regarding the Deposit Insurance Corporation, one of the jobs of IDIC is to develop, specify and enforce a procedure for the liquidation of failing banks that do not have a systemic effect and address failing banks that do have a systemic effect. The definition of systemic effect is when a bank’s failure will have an extraordinary impact on the availability of funds and the smoothness and sustainability of the economy. While a non-systemic effect is bank’s failure that does not meet the standards noted above. The implication of our research is to provide an understanding that assistance for failing banks in Indonesia is taken over by the IDIC which will form an entity called a bridge bank.","PeriodicalId":292753,"journal":{"name":"Journal of Central Banking Law and Institutions","volume":"12 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116623256","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Aisyah As-Salafiyah, A. Rusydiana, Ihsanul Ikhwan, Orla Ward, Sabrina Rochemont
Bank Indonesia plans to issue a digital rupiah in the Central Bank Digital Currency (CBDC) development project, the official digital currency issued by the central bank. This study aims to review the perceptions of the scientific literature regarding the CBDC theme from a legal perspective. Its nature is still new and has not been widely implemented by various countries worldwide, making this theme interesting for further study. This study uses a qualitative method with a sentiment analysis approach. The research object is 50 papers published by Scopus-indexed journals until December 12, 2022. The data is then processed using the SentiStrength software, which can be used in conducting sentiment analysis. CBDC is an innovation that is currently being developed by various countries in the world. The results of this study indicate differences in sentiment trends from various pieces of literature, where of the five classifications of sentiment, sentiment showing high positive and high negative amounts to 0%. The positive sentiment is 30%, the negative sentiment is 26%, and the neutral sentiment is 44%. This finding indicates that the dominant sentiment is neutral, where positive and negative levels are equal, followed by positive sentiment and then negative sentiment. The results of this sentiment analysis are an overview that can serve as basic research for regulators, practitioners and academics as valuable insights that can help provide an understanding of the scientific literature's perception of CBDC so that it can be considered in decision making. This research is the first study to conduct sentiment analysis on the scientific literature on the CBDC theme.
{"title":"CENTRAL BANK DIGITAL CURRENCY (CBDC): A SENTIMENT ANALYSIS AND LEGAL PERSPECTIVE","authors":"Aisyah As-Salafiyah, A. Rusydiana, Ihsanul Ikhwan, Orla Ward, Sabrina Rochemont","doi":"10.21098/jcli.v2i2.177","DOIUrl":"https://doi.org/10.21098/jcli.v2i2.177","url":null,"abstract":"Bank Indonesia plans to issue a digital rupiah in the Central Bank Digital Currency (CBDC) development project, the official digital currency issued by the central bank. This study aims to review the perceptions of the scientific literature regarding the CBDC theme from a legal perspective. Its nature is still new and has not been widely implemented by various countries worldwide, making this theme interesting for further study. This study uses a qualitative method with a sentiment analysis approach. The research object is 50 papers published by Scopus-indexed journals until December 12, 2022. The data is then processed using the SentiStrength software, which can be used in conducting sentiment analysis. CBDC is an innovation that is currently being developed by various countries in the world. The results of this study indicate differences in sentiment trends from various pieces of literature, where of the five classifications of sentiment, sentiment showing high positive and high negative amounts to 0%. The positive sentiment is 30%, the negative sentiment is 26%, and the neutral sentiment is 44%. This finding indicates that the dominant sentiment is neutral, where positive and negative levels are equal, followed by positive sentiment and then negative sentiment. The results of this sentiment analysis are an overview that can serve as basic research for regulators, practitioners and academics as valuable insights that can help provide an understanding of the scientific literature's perception of CBDC so that it can be considered in decision making. This research is the first study to conduct sentiment analysis on the scientific literature on the CBDC theme.","PeriodicalId":292753,"journal":{"name":"Journal of Central Banking Law and Institutions","volume":"54 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115611035","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This article investigates the competencies of both Indonesian and Singaporean capital market supervisory and regulatory bodies, namely Otoritas Jasa Keuangan and the Monetary Authority of Singapore. It further assesses the effectiveness of each body in enforcing laws prohibiting insider trading specifically. It shall further evaluate the passiveness portrayed by the Indonesian counterpart when it comes to the eradication of day trading activities in the market as well as variables that are weighed in its implementation. A normative-empirical method is used for this article as it considers legal principles and legal systems, following a comparative approach. The materials relied on for this article include an interview with a capital market lawyer, an analysis of the law and other supporting documents, and a comparative study. The nature of competence for Indonesia and Singapore’s capital market supervisory and regulatory bodies is quite similar which adopt integrated approaches towards regulation and supervision of the capital market and with adequate authority to enforce their mandates. Since 2012, OJK has replaces the role of Bapepam-LK to administer the Capital Market Law as an independent body. OJK is responsible for enacting rules and other oversight of the sector.
{"title":"COMPARATIVE LEGAL ANALYSIS ON THE COMPETENCE OF THE INDONESIA’S FINANCIAL SERVICES AUTHORITY AND MONETARY AUTHORITY OF SINGAPORE ON THE ENFORCEMENT OF INSIDER TRADING LAWS","authors":"Fabian Jonathan, Fajar Sugianto, Tomy Michael","doi":"10.21098/jcli.v2i2.24","DOIUrl":"https://doi.org/10.21098/jcli.v2i2.24","url":null,"abstract":"This article investigates the competencies of both Indonesian and Singaporean capital market supervisory and regulatory bodies, namely Otoritas Jasa Keuangan and the Monetary Authority of Singapore. It further assesses the effectiveness of each body in enforcing laws prohibiting insider trading specifically. It shall further evaluate the passiveness portrayed by the Indonesian counterpart when it comes to the eradication of day trading activities in the market as well as variables that are weighed in its implementation. A normative-empirical method is used for this article as it considers legal principles and legal systems, following a comparative approach. The materials relied on for this article include an interview with a capital market lawyer, an analysis of the law and other supporting documents, and a comparative study. The nature of competence for Indonesia and Singapore’s capital market supervisory and regulatory bodies is quite similar which adopt integrated approaches towards regulation and supervision of the capital market and with adequate authority to enforce their mandates. Since 2012, OJK has replaces the role of Bapepam-LK to administer the Capital Market Law as an independent body. OJK is responsible for enacting rules and other oversight of the sector.","PeriodicalId":292753,"journal":{"name":"Journal of Central Banking Law and Institutions","volume":"21 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124905867","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Climate change's impact on environmental quality has always been an interesting topic on the international platform, especially for developing countries. As a form of prevention and preparation, the World Bank green bonds by the World Bank have supported developing countries in participating in resilience to climate change. This article uses normative legal analysis with secondary data resources from books and other relevant scientific publications. The study result shows that the World Bank provided numerous recommendations and guidance for developing countries in implementing green bonds in their national regulations. Indonesia is one of the countries that applied green bonds through Bank Indonesia and Otoritas Jasa Keuangan (OJK). Bank Indonesia and OJK are now focusing on developing a Sustainable Finance Instrument (SFI) to stimulate the growth of a green and sustainable economy. A collaboration between the government and the authorities is essential to continuously build and preserve SFI in the market in the long term.
{"title":"GREEN BONDS IN INDONESIA: SYNERGY BETWEEN BANK INDONESIA AND OTORITAS JASA KEUANGAN’S COMMITMENT","authors":"Ria Wierma Putri, Tristiyanto, Yunita Maya Putri, O. Davey, Febryani Sabatira","doi":"10.21098/jcli.v2i2.37","DOIUrl":"https://doi.org/10.21098/jcli.v2i2.37","url":null,"abstract":"Climate change's impact on environmental quality has always been an interesting topic on the international platform, especially for developing countries. As a form of prevention and preparation, the World Bank green bonds by the World Bank have supported developing countries in participating in resilience to climate change. This article uses normative legal analysis with secondary data resources from books and other relevant scientific publications. The study result shows that the World Bank provided numerous recommendations and guidance for developing countries in implementing green bonds in their national regulations. Indonesia is one of the countries that applied green bonds through Bank Indonesia and Otoritas Jasa Keuangan (OJK). Bank Indonesia and OJK are now focusing on developing a Sustainable Finance Instrument (SFI) to stimulate the growth of a green and sustainable economy. A collaboration between the government and the authorities is essential to continuously build and preserve SFI in the market in the long term.","PeriodicalId":292753,"journal":{"name":"Journal of Central Banking Law and Institutions","volume":"146 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121715988","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This research paper proposes the conversion of conventional banks to full-fledged Islamic banks as a catalytic approach to propelling the Islamic finance industry to Islamic Finance 2.0. The paper identifies a gap in literature regarding a regulatory framework for Central Banks to regulate the conversion of conventional banks into Islamic banks. The objective of this paper is to propose a model regulatory framework, the "4-Quadrants Conversion Framework (4-FQF)," to aid Central Banks in regulating this conversion process. The 4-FQF consists of twenty-four components classified into four quadrants, and regulators can systematically and comprehensively regulate the conversion by focusing on these twenty-four components. The proposed conversion involves leaving all Shari’ah non-compliant activities and embracing Shari’ah permissible alternatives. Prior studies have discussed different aspects of conversion, and this paper contributes to the literature by proposing a regulatory framework for Central Banks to regulate the conversion process. The successful conversion of conventional banks to Islamic banks will result in a new Shari’ah compliant entity and eliminate a non-compliant one. The proposed regulatory framework can also serve as a guide for banks to self-assess and ensure a timely and less cumbersome conversion.
{"title":"REGULATING THE CONVERSION OF CONVENTIONAL BANKS TO ISLAMIC: THE 4 QUADRANTS CONVERSION (4-QC) FRAMEWORK","authors":"S. Sani, Ashurov Sharofiddin, M. Abubakar","doi":"10.21098/jcli.v2i2.158","DOIUrl":"https://doi.org/10.21098/jcli.v2i2.158","url":null,"abstract":"This research paper proposes the conversion of conventional banks to full-fledged Islamic banks as a catalytic approach to propelling the Islamic finance industry to Islamic Finance 2.0. The paper identifies a gap in literature regarding a regulatory framework for Central Banks to regulate the conversion of conventional banks into Islamic banks. The objective of this paper is to propose a model regulatory framework, the \"4-Quadrants Conversion Framework (4-FQF),\" to aid Central Banks in regulating this conversion process. The 4-FQF consists of twenty-four components classified into four quadrants, and regulators can systematically and comprehensively regulate the conversion by focusing on these twenty-four components. The proposed conversion involves leaving all Shari’ah non-compliant activities and embracing Shari’ah permissible alternatives. Prior studies have discussed different aspects of conversion, and this paper contributes to the literature by proposing a regulatory framework for Central Banks to regulate the conversion process. The successful conversion of conventional banks to Islamic banks will result in a new Shari’ah compliant entity and eliminate a non-compliant one. The proposed regulatory framework can also serve as a guide for banks to self-assess and ensure a timely and less cumbersome conversion.","PeriodicalId":292753,"journal":{"name":"Journal of Central Banking Law and Institutions","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-05-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127404472","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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