EMPIRICAL EVIDENCE OF THE SUITABILITY OF IFRS FOR BANKING SECTOR IN SUB-SAHARAN AFRICAN COUNTRIES

The reason for this investigation was to survey the appropriateness of International Financial Reporting Standards (IFRS) in sub-Saharan African nations banking sector like Ethiopia. The following research endeavors to acquire experiences into the benefits and detriments of IFRS execution in Ethiopian Banking sector depending on the view of banks financial directors, scholastics in accounting and external auditor. Examination is insightful of online overview, which intends to clarify the appropriateness of IFRS as opposed to depict a population. Along these lines, representativeness of the example to the population was not the objective of the examination; it endeavors rather to guarantee legitimacy of the information by applying purposive testing (Oppenheim, 1992). In such manner an aggregate of 30 surveys were conveyed to banks financial supervisors, scholastics and external auditors who have rich information and involvement with IFRS execution in financial sector in Ethiopia. Of the 26 answers (87 percent), 26 finished polls were broke down. The outcomes recommend that IFRS execution is appropriate for the banking sector of Ethiopia regardless of whether banks are causing extra significant expenses to carry out the standards. The selection of IFRS gives numerous benefits to the financial sector climate without logical inconsistency with Ethiopian financial laws and corporate duty. The advantages that the financial sector in Ethiopia will get from IFRS execution pertinently and dependably addresses the financial reports more than its execution cost.

Modelling of beyond budgeting, competitor accounting, transparency, competitive advantage, and organizational performance: The case of Indonesia SMEs

SMEs are the backbone in driving the Indonesian economy and play an essential role in creating jobs throughout Indonesia. Indonesian SMEs are the key to designing inclusive development through the merger of large & small businesses so that economic equity can touch all levels of society. This study examines several factors of Indonesian SMEs' organizational performance, such as beyond budgeting, competitor accounting, and transparency through competitive advantage. This research was conducted by distributing online questionnaires to business owners, financial managers, or financial supervisors of SMEs in Indonesia spread across six islands. A total of 155 questionnaires were obtained in this study and analysed by SMART PLS 3.2.9. The results show that beyond budgeting and transparency influence competitive advantage, while competitor accounting does not. Other results show that competitor accounting, transparency, and competitive advantage influence business performance, while beyond budgeting does not. Path analysis in this study shows that competitive advantage mediates beyond budgeting and transparency, while competitor accounting is not mediated. Researchers are aware that this study has limitations in data dissemination and was distributed during the COVID-19 pandemic conditions, which allowed for differences in results with other similar studies. Hopefully, with this research that practitioners will be able to provide other views beyond budgeting, competitor analysis, and the side of transparency for Small and Medium Enterprises in Indonesia. Policymakers can encourage SMEs to be more innovative and responsive to science through programs to increase business scale, considering the contribution of SMEs to Indonesia's gross domestic product. Further research is expected to analyze more deeply what factors affect the competitive advantage and organizational performance of small and medium enterprises, such as the availability of working capital, SME access to banks, how digitalization plays a role, etc.

Prudential supervisory disclosure (PSD) with supervisory technology (SupTech): lessons from a FinTech crisis

The U.S. financial markets faced an unprecedented rapid decline and recovery on May 6, 2010, known as the May 6 flash crash. Roughly one trillion $ market value in less than thirty minutes vanished with the biggest one-day point decline in the history of the DJIA at the time. Since the market events took place in electronic markets, and algorithmic trading and high-frequency trading, parts of FinTech, played significant roles, we handle the May 6 flash crash from the FinTech, SupTech, and financial supervision perspectives. With the flashback method, we analyzed the reactions of market participants, media, and two financial supervisors, the SEC, and the CFTC, to the market crash. We find that the technological imbalance between financial markets or institutions and their supervisors drove the markets in uncertainty, hence in a fear and panic environment. Since the imbalance has not diminished yet, the same risks still exist. As a remedy, we introduce a new concept and model with a well-functioning SupTech system to cope with the May 6 type FinTech crises.

MAIN TRENDS IN THE DEVELOPMENT OF DIGITAL ECONOMY IN THE WORLD AND UKRAINE

The digital economy is evolving at an incredible pace due to its ability to collect, use and analyze volumes of information (digital data) about anything. The fast-growing segment of e-commerce and sharing economy has become the driving force in the process of creating new workplaces. Digitalization accelerates economic and social processes, making them more efficient and transparent. This article aims to give a comprehensive account of the main aspects of the digital economy development that have an impact on economic systems and tells how economic values, basics and characteristics of the country's digital economy will be created. The main directions of digital development in Great Britain has been studied. As well as that there are shown achievements and problematic areas of the formation of the country’s digital economy. The program based on the BIM-strategy BIS, which is the most ambitious and comprehensive program in the world, has been researched. The problem of the gap in digital skills of population of the country and the shortage of skilled workers employed in digital form has been identified. The current state of the digital economy in Ukraine has been analyzed. In the given analysis of Ukraine's economy in terms of involvement of information and telecommunication technologies, the unevenness of "informatization" depending on industries and sectors has been determined as well as the ways of the country's development to overcome the digital gap between smaller cities and centers, people of different ages, backgrounds and incomes in the digital industry. Digitalization creates not only economic benefits but also risks. The Introduction of ICT in the financial sector increases the efficiency of financial services provided and promotes increasing the financial inclusiveness of the population, but poses financial threats to stability and complicates the work of financial supervisors and regulators. Ukraine has a good chance of reducing "electronic interference", unless the state begins to build regulatory policy in accordance with global practices and will not create artificial barriers to development business. The findings are of direct practical relevance.

The potential contribution of central banks to green finance

Summary: Central banks and financial supervisors approach ‘green finance’ mostly to preserve macroeconomic and financial stability according to their mandates. Obviously, climate change poses severe risks to households, firms and their financial intermediaries. These risks tend to be correlated and their scope goes beyond historical evidence, therefore their impact on the financial system is difficult to model. On the other hand, the planned decarbonization of the global economy creates enormous investment opportunities. Central banks and supervisors play a role in safeguarding the financial system’s smooth transformation from funding old, brown industries to funding a new green economy. The ‘Network for Greening the Financial System’ facilitates an exchange of experience and ideas among central banks and financial supervisors; we present some of their findings. While central banks can and should contribute to making the economy and the financial system more sustainable, they can only complement, but not substitute for, decisive political action by governments.

Factoring transition risks into regulatory stress-tests: The case for a standardized framework for climate stress testing and measuring impact tolerance to abrupt late and sudden economic decarbonization

A debate has recently emerged as to whether climate risks may be material for financial stability, driven by a solid body of evidence that climate risks may create value destruction for key industrial sectors that are prominently represented in financial markets. As a result, financial supervisory authorities are starting to explore how these risks can be integrated into existing stress-testing frameworks. This paper proposes a methodology that financial supervisors could follow to build ‘late & sudden’ transition scenarios that could be used as input into either traditional or climate-specific stress-tests of regulated entities. It also proses that supervisors run multiple simulations of these scenarios across regulated entities to inform on systemic and idiosyncratic ‘impact tolerance’ and creation of ‘reverse stress-tests’ enable the setting of minimum capital thresholds. An illustrative application of the process is shown, focusing on listed equity and corporate bonds tied to climate sensitive sectors (fossil fuels, power, steel, cement, automotive and aviation).