Advancing Corporate Governance in the Banking Sector in Sri Lanka: Assessing Regulatory Frameworks and Supervisory Roles | Chapter 7 | Contemporary Research in Business, Management and Economics Vol. 6

 

In the aftermath of the civil war in Sri Lanka, the country has witnessed a significant increase in economic development, with the banking sector assuming a pivotal role in financing growth and fostering economic prosperity. This chapter investigates the importance of Corporate Governance (CG) within Sri Lanka's banking sector, recognizing its profound influence on public trust and confidence, essential for ensuring the stability of financial institutions. The chapter critically examines the state of CG development and its implications, focusing on the adequacy of regulatory frameworks provided by key legislative Acts such as the Companies Act, Banking Acts, and Securities Act and other pertinent regulations. It highlights the crucial role of a robust governance culture within the banking sector and emphasizes that banking institutions are crucial for maintaining a healthy economy. The banking industry stands as the cornerstone of Sri Lanka's economy and operates in a highly regulated environment. Banks play a critical role by taking public deposits and facilitating financial transactions for individuals and businesses, thereby contributing significantly to economic stability and growth. Given the country's past economic challenges, establishing solid governance practices within the banking sector is imperative for steering Sri Lanka towards a more resilient and prosperous future. The Central Bank of Sri Lanka (CBSL) emerges as a key player in this narrative, exhibiting continuous improvement in its supervisory capacity. Through the enforcement of stringent measures and the adoption of BASEL principles, the CBSL demonstrates a steadfast commitment to enhancing CG within the banking industry. Additionally, the CBSL has mandated a comprehensive code of CG, stressing the importance of full compliance from banks within a specified timeframe. However, despite these advancements, challenges persist in addressing CG issues within the banking landscape. This study sheds light on the scope, impact, and effectiveness of the supervisory and regulatory oversight of the CBSL, while also highlighting ongoing challenges. By critically evaluating regulatory frameworks and supervisory roles, this chapter aims to contribute to the ongoing discourse on advancing CG in the banking sector in Sri Lanka, ultimately fostering a more stable and resilient financial ecosystem.

 

 

Author(s) Details

W. Indira Nanayakkara

Faculty of Law, University of Colombo, Sri Lanka.

 

 

Please see the book here:- https://doi.org/10.9734/bpi/crbme/v6/8364E

Impact of Liquidity Risk and Liquidity Management Role | Chapter 3 | Business, Management and Economics: Research Progress Vol. 2

 

A strong liquidity position in the banking industry is of paramount importance for the smooth functioning of the economy. The failure of the bank to manage its liquidity results in liquidity risk which further increases the probability of default (PD) in the banking industry. The aim of this paper is the analysis of liquidity management policy in order to determine the level of liquidity risk. Planning of liquidity requirements is important from the microeconomic aspect because the banks at any moment must respond to requests submitted by depositors or applications for new loans. Provision of liquidity is also required from the macroeconomic aspect since this reflects on the economic and financial stability. Quantitative data for this study was collected using a questionnaire designed to analyze liquidity risk management, which would help in the identification and explanation of possible changes in the banking system in the country. Data collected from the questionnaire was processed using the SPSS program. Based on the analysis, it is estimated that banks properly manage liquidity and maintain adequate liquidity reserves to ensure sufficient funds to meet their commitments on time. Also, the main sources providing liquidity for banks are the non-term deposits and the issuance of various securities. However, holding excess liquidity reserves causes the opportunity cost for banks, but also non-fulfillment of the requirements of the economy for loans. Therefore, the regulatory bodies should reduce the liquidity reserve holding. It is recommended for future research studies to expand not only in Kosovo but also in the CEE countries in general because there is no such research.

 

Author(s) Details

Lumnije Thaçi
College “UBT”, Prishtina, Kosovo.

 

Please see the book here:- https://doi.org/10.9734/bpi/bmerp/v2/1343

Securing Financial Transactions: A Taxonomical Review of Cybersecurity Strategies in Banking | Chapter 4 | Business, Management and Economics: Research Progress Vol. 7

The financial sector has become one of the most heavily targeted industries for cyberattacks due to its vast repository of sensitive information and its pivotal role in the global economy. As banking institutions rapidly adopt digital technologies to enhance service delivery and customer experience, they are increasingly exposed to sophisticated cyber threats. This paper presents an extensive taxonomical review of the various cybersecurity strategies employed in the banking sector to secure financial transactions and protect against data breaches, financial fraud, and identity theft. The study categorizes existing cybersecurity mechanisms into distinct classes based on their core functionalities, technological frameworks, and applicability in different contexts of banking operations. The taxonomy is divided into preventive, detective, and corrective strategies, each covering a diverse set of techniques and tools. Preventive measures include encryption standards, secure coding practices, and robust authentication methods such as multi-factor authentication (MFA) and biometric verification. Detective strategies focus on real-time monitoring systems like intrusion detection systems (IDS), artificial intelligence (AI)-driven threat detection, and Security Information and Event Management (SIEM) solutions. Corrective strategies encompass incident response frameworks, disaster recovery plans, and data loss prevention (DLP) measures designed to mitigate damage in the aftermath of a cyberattack.

One of the key contributions of this review is an in-depth evaluation of emerging technologies and their role in transforming banking cybersecurity. These include blockchain-based transaction validation, quantum cryptography, AI and machine learning algorithms for anomaly detection, and zero-trust architectures that enforce strict verification at every layer of the network. The paper discusses how these advanced solutions complement traditional security measures and create a multi-layered defense system capable of addressing the increasingly complex threat landscape. The review highlights the importance of regulatory compliance and international standards, such as the Payment Card Industry Data Security Standard (PCI-DSS), General Data Protection Regulation (GDPR), and ISO/IEC 27001, in shaping cybersecurity strategies within banking institutions. Adherence to these standards not only ensures legal compliance but also provides a foundational framework for implementing effective security controls. Furthermore, the study analyzes the cost-effectiveness of different cybersecurity strategies, considering the financial constraints and resource availability that often influence the adoption of advanced technologies in small and medium-sized banking institutions.

 

 

Author (s) Details

Pallavi Mane
Department of Commerce and Management, Mandsaur University, Mandsaur, India.

 

Shrawan Kumar Sharma
Department of Computer Science and Engineering, Mandsaur University, Mandsaur, India.

 

Please see the book here:- https://doi.org/10.9734/bpi/bmerp/v7/2862

Harnessing Digital Banking Technologies: Law as a Catalyst for Societal Progress and Economic Empowerment | Chapter 3 | Science and Technology: Developments and Applications Vol. 7

In today's digital era, the banking sector is evolving rapidly due to technological advancements, offering enhanced convenience, accessibility, efficiency and security to individuals and businesses. To ensure these technologies benefit everyone, it is important to have stringent laws that promote societal progress and economic empowerment. The law can act as a catalyst for positive change by ensuring equitable access to banking services and safeguarding against risks associated with technological advancements. The purpose of this research is to investigate how the utilization of digital technologies can be used in banking to improve the accessibility, quality and effectiveness for customers. In this context, law plays a key role in facilitating the development of banking to meet society's needs in a sustainable, inclusive, and harmonious manner. The study emphasizes the role of law in facilitating rapid technological advancements in banking and explores the importance of regulatory frameworks in enabling innovation while ensuring that the pace of technological change is reasonable and that risks are minimized. The study highlights the need for vigorous data protection laws, e-commerce and cybersecurity standards that promote trust in digital banking systems and protect against cyber threats and criminal activities. Furthermore, the importance of laws prohibiting discriminatory practices and mandating accessibility standards in digital banking is discussed to ensure equal access for all segments of society, including those with disabilities. Ethical guidelines are proposed to address concerns about the development and use of banking technologies, while legal frameworks should prohibit unfair practices and empower customers through financial education initiatives. The research highlights major cybersecurity and data protection issues in Sri Lanka's digital banking, calling for stricter law enforcement of existing laws and alignment with international standards. It also emphasizes the need for operational and technical solutions, while ensuring financial inclusion for underprivileged and disabled individuals. This study employs a library research methodology to examine the societal and individual impacts of DB technologies in Sri Lanka, analyzing existing literature and the legal framework to identify trends, challenges, and key factors influencing their adoption and implications for financial inclusion, social equity, and economic empowerment.

 

Author (s) Details

 

Wellalage Indira Nanayakkara
Faculty of Law, University of Colombo, Sri Lanka.

 

Please see the book here:- https://doi.org/10.9734/bpi/stda/v7/4659

Financial Vulnerability, Customer Engagement and Satisfaction in South African Banks: A Structural Equation Model | Chapter 4 | Economics and Entrepreneurship: The Proceedings of the 10th International Conference on Business and Management Dynamics (ICBMD), Edition 1

This study investigates the impact of financial vulnerability on customer engagement and satisfaction within the South African banking sector under a persistent inflation and prolonged contractionary monetary policy environment.

The relationships examined were hypothesized based on the SABI model, which underpins the functional analysis of interactions provided by the interdependence theory. Utilizing a structural equation modeling approach, data were collected from 314 bank customers through the questionnaire method. The analysis reveals a significant and positive relationship between financial vulnerability and customer engagement (p < 0.05), indicating that customers with lower financial resilience engage more with their banks. Furthermore, a direct and significant link (p < 0.05) between financial vulnerability and customer satisfaction suggests that current financial hardships do not diminish overall satisfaction levels. However, a positive relationship between customer engagement and customer satisfaction is not statistically significant, suggesting that customer interactions were not a determining factor of their satisfaction level. These findings imply that monetary policymakers and banks should adapt their strategies to support financially vulnerable customers, promote customer engagement, and thus enhance bank-customer long-term relationships. However, the study is limited by the demographic scope of the sample, necessitating further research to validate these insights across diverse customer segments.

 

Author (s) Details

 

Sophie Kasse-Kengne
Cape Peninsula University of Technology, South Africa.

 

Please see the book here:- https://doi.org/10.9734/bpi/mono/978-93-49238-53-4/CH4

Advancing Corporate Governance in the Banking Sector in Sri Lanka: Assessing Regulatory Frameworks and Supervisory Roles | Chapter 7 | Contemporary Research in Business, Management and Economics Vol. 6

 In the aftermath of the civil war in Sri Lanka, the country has witnessed a significant increase in economic development, with the banking sector assuming a pivotal role in financing growth and fostering economic prosperity. This chapter investigates the importance of Corporate Governance (CG) within Sri Lanka's banking sector, recognizing its profound influence on public trust and confidence, essential for ensuring the stability of financial institutions. The chapter critically examines the state of CG development and its implications, focusing on the adequacy of regulatory frameworks provided by key legislative Acts such as the Companies Act, Banking Acts, and Securities Act and other pertinent regulations. It highlights the crucial role of a robust governance culture within the banking sector and emphasizes that banking institutions are crucial for maintaining a healthy economy. The banking industry stands as the cornerstone of Sri Lanka's economy and operates in a highly regulated environment. Banks play a critical role by taking public deposits and facilitating financial transactions for individuals and businesses, thereby contributing significantly to economic stability and growth. Given the country's past economic challenges, establishing solid governance practices within the banking sector is imperative for steering Sri Lanka towards a more resilient and prosperous future. The Central Bank of Sri Lanka (CBSL) emerges as a key player in this narrative, exhibiting continuous improvement in its supervisory capacity. Through the enforcement of stringent measures and the adoption of BASEL principles, the CBSL demonstrates a steadfast commitment to enhancing CG within the banking industry. Additionally, the CBSL has mandated a comprehensive code of CG, stressing the importance of full compliance from banks within a specified timeframe. However, despite these advancements, challenges persist in addressing CG issues within the banking landscape. This study sheds light on the scope, impact, and effectiveness of the supervisory and regulatory oversight of the CBSL, while also highlighting ongoing challenges. By critically evaluating regulatory frameworks and supervisory roles, this chapter aims to contribute to the ongoing discourse on advancing CG in the banking sector in Sri Lanka, ultimately fostering a more stable and resilient financial ecosystem.

Author(s) Details:

W. Indira Nanayakkara,
Faculty of Law, University of Colombo, Sri Lanka.

 

Please see the link here: https://stm.bookpi.org/CRBME-V6/article/view/14355

A Field-based Review of the ICT Utilization in the Banking Sector the Case of the Commercial Banks in Oman | Chapter 3 | New Innovations in Economics, Business and Management Vol. 2

 The debate about how important technology, specifically information and communication technology (ICT), is in business is currently over. The focus of today's research has changed to fine-tuning the use of ICT and determining its role in accomplishing strategic corporate goals. The literature focuses on narrow scopes of businesses to provide better ICT calibration in terms of utilisation and contribution to the overall business system, as evidenced by the literature focusing on narrow scopes of businesses to provide better ICT calibration in terms of utilisation and contribution to the overall business system. The goal of this research is to advance the role of ICT in achieving company strategic goals. The banking industry was chosen to see how far it has progressed in its use of ICT resources. Oman was chosen as a representative of the Gulf Cooperation Council (GCC) nations. Data collection tools included a self-administered questionnaire and an interview. The mixed methodology, qualitative and quantitative, had been chosen. SPSS 16 was used for the descriptive statistics. The interviews were used for data triangulation as well as gaining deeper insights and aiding in the interpretation of quantitative data. The findings reveal that the chosen sector has implemented cutting-edge ICT infrastructure in both back- and front-office business processes. While ICT resources are widely available in this industry, the study reveals that there is still room for improvement in terms of management.

Author(S) Details

Tareq Alhousary
Department of MIS, College of Commerce & Business Administration, Dhofar University, Oman.

Jason Underwood
School of the Built Environment, The University of Salford Manchester, UK.

Dimitrios Xanthidis
Department of Computer and Information Science, Dubai Men's College, Higher Colleges of Technology, UAE.

View Book:- https://stm.bookpi.org/NIEBM-V2/article/view/4739