Issue #4 (Volume 19 2024)

Understanding the impact of economic factors on bank lending is crucial in Kazakhstan’s modern economy, characterized by volatile inflation and fluctuations in real wages. This paper aims to investigate the link between bank lending and economic factors such as inflation, real wages, and consumer expenditure in a regional context. Data from the Bureau of National Statistics and the National Bank, covering the period from 2012 to 2022, were used to uncover how economic factors influence bank lending. For the analysis, various economic indicators were integrated through normalization and averaging. Analysis reveals significant regional disparities in real wages and consumer expenditures, which impact the demand for bank credit. The results of the correlation matrix showed that both real wages (P-value < 0.001) and inflation (P-value < 0.001) significantly impact bank lending, with an R² value of 0.998, indicating that the model explains 99.8% of the variation in bank lending. The regression analysis highlights that regions with higher real wages, such as Astana, Almaty, and Atyrau, provide the most favorable conditions for banking sector growth, demonstrated by a strong relationship between wages and bank lending. In contrast, regions with lower wage levels, such as Turkestan and Zhambyl, show a significantly weaker connection (around 0.65), reflecting their lower attractiveness for banking investment and emphasizing the need for policies to address social inequality. The Durbin-Watson test confirmed no autocorrelation in residuals (DW = 1.89), although heteroscedasticity was detected, suggesting the need for further model adjustments. The study emphasizes the importance of developing economic policies that can balance regional development and improve financial stability.

Acknowledgments
This research has been funded by the Science Committee of the Ministry of Science and Higher Education of the Republic of Kazakhstan (Grant “Development of mechanisms for reducing social inequality and improving the welfare of the population of Kazakhstan” AP19174744).

Digital financial services are crucial in boosting the competitive edge of businesses and economies in numerous developing nations. This study aims to explore the factors that affect consumers’ perceptions of the implementation of consumer protection laws and their willingness to continue using digital financial services. Data were collected through interviews with 689 Gen Z consumers (born after 1996) who have used digital financial services in Vietnamese commercial banks. The results of the partial least square – structural equation modeling indicate that six factors influence attitudes toward the enforcement of consumer protection laws, in descending order: perceived benefits, understanding of legal regulations, perceived asymmetry, perceived risk, understanding of technology and digital finance, and understanding of dispute resolution. Additionally, attitudes toward law enforcement, as well as understanding of technology and digital finance, positively impact consumers’ intention to reuse digital financial services, while perceived risk has the opposite effect. Furthermore, all six independent factors impact the intention to reuse digital financial services through the mediating role of attitudes toward the enforcement of consumer protection laws. The study’s findings also lay the groundwork for policy recommendations for legislative authorities and strategic guidance for service providers and consumers in emerging markets in the future.

Acknowledgment
This study is the result of collaboration between researchers from the University of Law, Hue University, and School of Business and Economics, Duy Tan University. The authors would like to thank both institutions for their support and facilitation in the publication of this research. This study was conducted under project code DHH2024-12-85, Decision No. 298/QĐ-ĐHH dated March 27, 2024, issued by the Director of Hue University.

This study investigates the short-run dynamics among Islamic financial depth, interest rates, inflation, and their impact on Saudi Arabian economic output using quarterly information spanning 2017–2023. The study employed a vector autoregressive model due to the non-cointegrated nature of the variables. Results indicate positive short-run relationships between the current GDP per capita and its lagged value, and between economic growth and inflation. Conversely, interest rates demonstrated a negative short-run relationship with economic growth, while Islamic financial depth showed a positive but lagged impact. Wald tests confirmed short-run causality from inflation, interest rates, and Islamic financial depth to GDP. These findings suggest that keeping inflation in check with good central bank policies is important for stable markets and a growing economy. Furthermore, the size of the Islamic finance sector in Saudi Arabia seems to boost the country’s economy. The findings provide useful information for Saudi Arabian decision-makers in government and Islamic financial institutions.

Trust is key to mobile banking adoption, shaping customer confidence in the service. Trusting behaviors and expectations vary between genders and across generational cohorts, influenced by factors like system and information quality. As such, the purpose of this study was to determine whether South African Generation Y male and female banking customers differ in their mobile banking trust, system, and information quality. In accordance with a descriptive research design, self-administered surveys were voluntarily distributed to 334 South African mobile banking participants. Using structural equation modeling, the study found that, among the male participants, the system quality of mobile banking predicts their mobile banking trust (β = 0.72, p < .001) and perceived information quality of the system (β = 0.94, p < .001). However, their mobile banking trust had an insignificant influence on their perceived information quality (β = –0.04, p > .001). For female Generation Y banking customers, mobile banking system quality was a significant predictor of both trust (β = 0.53, p < .001) and information quality (β = 0.69, p < .001). In addition, the path between trust and information quality was statistically significant (β = 0.17, p < .05). Determining the role of trust and its relationship between information and system quality of mobile banking among males and females is essential for understanding customer behavior, enhancing user experience, mitigating perceived risk, and guiding strategic decision-making in the mobile banking industry.

This paper examines how good corporate governance (GCG) affects Indonesian banks’ non-performing loans (NPLs) and its relevance to the current banking sector situation in Indonesia. The research findings provide a comprehensive understanding of the effect of bank-specific factors on NPLs, offering timely and important insights for the banking industry. This quantitative study focuses on commercial banks listed on the Indonesian Stock Exchange in 2021. The observation period spans four years (2018–2021), utilizing 216-unit panel data from 54 banks for analysis. Documentation was used for data collection, and panel data multiple regression analysis was employed as the data analysis technique. The findings indicate that increased board of directors’ meetings are associated with higher NPLs, while having independent board commissioners correlates with lower NPLs. The p-value of the board of director meetings is 0.027, and the coefficient is 0.005037. The p-value of the board of independent board commissioners is 0.017, and the coefficient is –0.00109. Effective GCG implementation is crucial in maintaining credit quality and reducing NPL levels. The p-value of the GCG score is 0.043, and the coefficient is –0.42985. However, the frequency of Board of Commissioners’ meetings does not significantly affect NPLs. The study also shows that the Loan Deposit Ratio (LDR) and bank size negatively and significantly impact NPLs. In contrast, Return on Equity (ROE) and leverage do not significantly affect NPL levels in Indonesian banks. This study provides empirical evidence that underscores the importance of robust GCG, especially during the challenging business conditions triggered by the pandemic.

Acknowledgments
This study received funding from LPPM UNNES, contract number 12.12.4/UN37/PPK.10/2023.

Adopting International Financial Reporting 9 is critically relevant as it significantly transforms accounting practices, particularly in credit risk management, for banks in Jordan. The primary purpose of this study is to examine the impact of implementing International Financial Reporting 9 on the financial performance and credit risk management practices of Jordanian banks. A quantitative analysis was conducted using the Difference-in-Differences approach and Fixed Effects models on data from 19 banks operating between 2012 and 2022.
The results indicate that the adoption of International Financial Reporting 9 led to a substantial increase in loan loss provisions, with a mean increase of 0.25 (t-value = 18.00). This increase in loan loss provisions negatively affected profitability metrics such as Return on Assets and Return on Equity, which showed mean decreases of 0.0857 (t-value = 4.22) post-implementation. Despite the negative impact on profitability, the findings also highlight improvements in financial transparency and stability due to more accurate credit risk assessment.
While the adoption of International Financial Reporting 9 imposes operational and financial challenges, it enhances the robustness and clarity of financial reporting in Jordanian banks.

Employee retention is a critical challenge in the banking sector, with high turnover rates leading to significant costs and operational disruptions. This study investigates the mediating role of employee engagement in the relationship between recruitment and selection practices and employee retention at the National Bank of Bahrain (NBB). A quantitative cross-sectional survey approach was employed, with data collected from a random sample of 257 NBB employees across various departments and hierarchical levels. The study utilized structural equation modeling via SmartPLS to analyze the data. Results indicate that recruitment and selection practices significantly influence employee engagement (β = 0.861, p < 0.000) and employee retention (β = 0.455, p < 0.006). Moreover, employee engagement was found to have a significant positive effect on employee retention (β = 0.406, p < 0.018). Notably, the study reveals a significant indirect effect of recruitment and selection on employee retention through employee engagement (β = 0.35, p < 0.019), confirming the mediating role of employee engagement. These findings emphasize the importance of strategic recruitment and selection practices in fostering employee engagement and enhancing retention rates. The study significantly contributes to the literature on human resource management in the banking sector, providing a deeper understanding of employee engagement’s role in retention and offering practical implications for organizations seeking to improve their talent management strategies and reduce turnover.

This study aims to investigate how talent management practices, career development, and organizational culture influence employee retention in Jordan’s banking sector. Given the competitive nature of the financial industry, the need to retain talent is critical for organizations. Questionnaires were distributed to 257 full-time employees of various commercial banks in Jordan who have been with their organizations for at least a year, based on this quantitative study. The study made an effort to ensure the sample was both diverse and stable. The study included respondents from various departments, levels, and sizes of banking companies in the sample to enhance its validity. These criteria were designed to include participants who have worked in the organization for a longer period, enabling them to understand the impact of talent management practices and organizational culture. The results reflect that effective talent management practices boost employee retention. The study further attested that career development opportunities and an organizational culture are important moderating factors to strengthen the relationship. According to the research findings, an organization should implement a fully realized approach to talent management with career development and embrace an organizational culture that enhances employee retention.

The growing need to comprehend how dividend policy affects bank size, particularly in emerging markets like Jordan, makes this study relevant. Bank size, often measured by total assets, is a key indicator of financial strength and stability. This study aims to examine the relationship between various measures of dividend policy – dividend per share, dividend yield, and dividend per share to earnings per share ratio – and bank size in Jordanian banks, using earnings per share as a control variable.
The study employs ordinary least squares regression analysis to investigate the relationship between these variables over a sample of Jordanian banks. Three regression models were constructed to evaluate the impact of each dividend measure on bank size. The results indicate a significant positive relationship between dividend per share and bank size, and between the dividends per share to earnings per share ratio and bank size. The results show that approximately 43.9% of the variance in bank size is explained by the Dividends per share and Earnings per share, and a significant positive correlation is observed between total assets (bank size) and dividend per share, with a coefficient of 53%. Dividend yield, however, showed no significant impact on bank size.
The results support that Jordanian banks with a sound dividend policy on dividend per share and its continuity with earnings exhibit higher asset growth. In this respect, bank growth appears to be highly dependent on a prudent dividend policy even from an emerging markets perspective.

The management of dormant accounts and unclaimed balances is a pressing challenge in the banking sector of the United Arab Emirates (UAE), particularly given the complex regulatory landscape. This study analyzes 150 dormant accounts across five major UAE banks (Emirates NBD, First Abu Dhabi Bank, Dubai Islamic Bank, Sharjah Islamic Bank, and Abu Dhabi Commercial Bank) and identifies gaps in the legal framework, including the absence of clear definitions and handling of non-monetary assets.
The study investigates the legal framework governing dormant accounts, specifically focusing on the Dormant Accounts System No. 1 of 2020. The results highlight critical issues, including the lack of clear timelines for transferring unclaimed balances and inconsistencies in communication protocols for notifying account holders. Furthermore, the study emphasizes the need for standardized practices across financial institutions in the UAE.
To address these challenges, the study proposes legislative amendments to improve asset management and consumer protection. Key recommendations include establishing standardized definitions, implementing automated tracking systems for dormant accounts, and integrating dormant balances into social welfare programs to enhance public trust. These reforms could significantly improve operational efficiency and legal clarity in the UAE banking sector, contributing to a more transparent and effective management of dormant accounts and unclaimed balances.

Acknowledgments
The authors are thankful to the Deanship of Graduate Studies and Scientific Research at the University of Bisha for supporting this work through the Fast-Track Research Support Program.

The purpose of this study was to measure the performance of mobile banking by offering an integration from the diffusion of innovation and service convenience models among college students in Indonesia. This study uses a cross-sectional design with a survey study as a data acquisition strategy and the quantitative research type. The questionnaire was completed by 202 respondents from the University of North Sumatra, Telkom Mercubuana, Multimedia Nusantara, Bengkulu, Brawijaya, Katolik Widya Mandala Surabaya, Negeri Jakarta, Tarumanagara, Trisakti, and Pembangunan Nasional Veteran, due to their active use of mobile banking. Data analysis used the partial least squares structural equation modeling approach, where the service convenience model was analyzed in the second order and the diffusion of innovation model was analyzed in the first order. The results prove that decision convenience, access convenience, transaction convenience, benefit convenience, and post-benefit convenience are the determining dimensions of service convenience and have a significant positive effect on mobile banking performance. In addition, compatibility also has a significant positive effect on mobile banking performance. However, relative advantage and complexity do not affect mobile banking performance.

The paper builds on the existing literature on monetary policy frameworks, exploring their role in balancing price stability, economic growth, and social equity. The aim is to analyze the influence of macroeconomic, in particular monetary, factors on income inequality in Ukraine. Using annual data from 1999 to 2021, the study employs multiple regression analysis to assess the impact of inflation, unemployment, monetization, and the key policy rate on income inequality. The results indicate that inflation and unemployment significantly contribute to rising inequality, while increased monetization and higher key policy rates reduce it. The findings underscore the need for a monetary policy framework that not only targets inflation but also addresses employment, as unemployment has a delayed yet substantial effect on inequality. Although the negative correlation between monetization and inequality suggests that efforts to curb inflation could inadvertently increase inequality, it also indicates that enhancing financial inclusion through increased liquidity could produce positive redistributive effects. Given the limitations of inflation targeting, including its tendency to overlook employment objectives, delayed effects on inequality, and potential contradiction with financial inclusion goals, a flexible approach to inflation targeting may be a more effective strategy for reducing income inequality in Ukraine.

This study explores the impact of digital banking channels on the operational excellence of Jordanian banks. It investigates the impact of social media, chatbots, digital wallets, and mobile applications on operational excellence in Jordanian banks, focusing on the moderating role of organizational culture. The study used a quantitative research method and a stratified random sampling technique to ensure a diverse sample of the five largest banks in Jordan, including managers and IT professionals responsible for managing digital banking operations. A total of 276 completed questionnaires were analyzed using structural equation modeling. The findings show that digital banking channels significantly contribute to operational excellence. Social media banking (β = 0.155, p < 0.05) and chatbots (β = 0.212, p < 0.01) positively impact operational excellence, while digital wallets (β = 0.301, p < 0.001) and mobile banking applications (β = 0.22, p < 0.01) also exhibit significant positive effects. The structural model explained 63% of the variance in operational excellence. Additionally, organizational culture was found to positively moderate the impact of social media banking (β = 0.20, p < 0.01), chatbots (β = 0.10, p < 0.05), and digital wallets (β = 0.16, p < 0.01) on operational excellence. However, the interaction between mobile applications and organizational culture was not significant (β = 0.078, p = 0.065).