Quantifying the probability of a recession in selected Central and Eastern European countries

The COVID-19 pandemic simultaneously affected most economic sectors and has already caused severe worldwide social and economic damage. In response, authorities introduced social distancing measures, with an adverse impact on economic activity. If policymakers were aware of the existing vulnerabilities, including those derived from the positioning on the business cycle, resilience could have been increased. The aim of this article is to describe various methods of dating business cycles in several Central and Eastern European (C.E.E.) countries, namely Czechia, Hungary, Poland and Romania. Furthermore, a Probit model regarding the probability of a recession is estimated, confirming the adverse effects of the pandemic, in contrast with a brightening outlook given vaccination campaigns and the E.U. recovery package. However, in case of the Romanian economy, an in-sample estimation showed a high probability of negative growth rates even in a pre-pandemic world, due to the high macroeconomic imbalances. © 2022 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.

Banking infrastructure and the Paycheck Protection Program during the Covid-19 pandemic

In response to the Covid-19 pandemic, the US federal government distributed US$800 billion in Paycheck Protection Program (PPP) loans to small businesses to preserve employment. Since PPP funding was transmitted through private banks, the characteristics of the regional banking market may have unevenly affected the programme's reach. This paper examines how variations in market concentration and the presence of community banks contributed to PPP disbursement in US counties. It finds that greater regional banking market concentration correlates with fewer PPP loans, but this negative relationship is mitigated by a greater presence of community banks in highly concentrated markets. © 2022 Regional Studies Association.

The great balancing act: women seeking work-life balance during COVID-19

This research carried the aim to learn more about women's lived experiences related to work-life balance during the COVID-19 pandemic and to offer recommendations specifically to the financial services industry. The study was used to understand women's lived experiences related to work-life balance during the pandemic, individual and environmental factors that influence work-life balance challenges for women, and how to foster work-life balance at home and work. The aim was to understand how women can feel empowered when navigating work-life challenges during the pandemic and to offer recommendations for the financial services industry. The qualitative methodology of this study was guided by the conceptual frameworks of Bronfenbrenner's ecological model, the literature, the research questions, and the problem statement. Twenty participants represented the broad population of women, ranging in age between 29 to 64 years old and employed in the financial services industry (e.g., banking, collections, credit, insurance, credit reporting, and repair) in the United States during the COVID-19 pandemic. Twenty-one interview questions were asked during the semi-structured interviews. Findings revealed work-life balance challenges for women employed in the financial services industry. Work-life balance challenges for women varied based on age, marital and family status, and access to organizational support and resources while working from home. Emerging themes included a sense of control and empowerment when creating self-imposed boundaries to balance work-life demands and work-life conflict. Based on the interview findings and in concurrence with a thorough literature review, the study outlines recommendations, and future implications for organizations to consider when women are seeking work-life balance support, while employed in a work-from-home environment in the financial services industry. (PsycInfo Database Record (c) 2023 APA, all rights reserved)

Measuring Internet banking service quality: an empirical evidence

Purpose>This study aims to empirically develop a reliable and valid instrument measuring the online service quality in the context of the banking sector in India.Design/methodology/approach>The methodological framework of this research comprises developing an instrument that is based on previous literature, qualitative and quantitative procedure. The study used the survey method and collected data via a well-structured questionnaire from a sample of active Internet banking users. The proposed instrument is identified by the data-reduction technique that is exploratory factor analysis (EFA), and validated through the confirmatory factor analysis (CFA).Findings>The results confirmed that the digital banking service quality scale (DBSQual) contains 24 items in seven dimensions: (1) web architecture, (2) user friendliness, (3) efficiency of website, (4) reliability, (5) responsiveness, (6) security and (7) personalization. The relationship between digital banking service quality and e-customer satisfaction has also been found to be significant in this study.Research limitations/implications>The results of this study do not find general application for different banks operating in the same sector in India. More testing of DBSQual is required across various different contexts for validity augmentation. In addition, findings would be more reliable if the non-Indian context could be taken into consideration. Thus, such limitations open a window for future research.Practical implications>This study is quite fruitful for the banking organizations in measuring their online services, and enables them to implement their marketing and operational strategies more effectively and efficiently.Originality/value>The contribution of this study is the development and validation of a new instrument that is DBSQual that contains seven determinants of customers' e-service quality perception, emphasis on measuring online service quality in the Indian banking sector. These determinants will offer banks a promising starting idea for establishing an effective quality management for their online businesses. They will be able to increase the opportunities by tapping themselves at a competitive edge.

Financial Solace: Malaysian Credit Counselling and Debt Management Agency Responses to COVID-19 Challenges

This study evaluates the measures undertaken by the Credit Counselling and Debt Management Agency (AKPK) to assist those financially distressed due to their inability to meet their financial commitments amidst the COVID-19 pandemic. Adopting secondary analysis of qualitative data, relevant secondary data, including journal articles, annual reports, and newspaper articles, were analyzed. The study finds that measures adopted by AKPK in response to the COVID-19 pandemic include reinforcing the workforce, enhancing IT infrastructures, deploying digital platforms, using various media channels, introducing online apps, online portals, online webinars, online learning modules, and online payment facility for all debt management participants. AKPK is also entrusted with handling small and medium enterprises (SMEs) under the Small Debt Resolution Scheme. A dedicated SME Helpdesk is established to facilitate the process. AKPK's continual support to provide financial aid is reflected in its collaborative effort with the banking industry under the Financial Management and Resilience Program and the Financial Resilience Support Program. However, the government should seriously consider strengthening personal data protection laws because of AKPK's significant reliance on digital platforms. Similarly, appropriate government bodies must take quick action to address the digital divide issue and promote inclusion to reduce disparity in terms of access to online services offered by AKPK. Also, since certain individuals or SMEs with credit facilities with entities not regulated by Bank Negara Malaysia are deprived of this incentive, relevant regulators should undertake actions to provide a similar facility. This study is significant in that it provides lessons to be learned by other credit counseling and debt management agencies in adopting effective measures to enable them to adapt to the new normal. © The Authors.

Key Pillars for FinTech and Cybersecurity

The technological advancements of the last couple of years combined with the unique situation created by the Covid-19 pandemic made the customer more open to the digitalization of several financial services and procedures in order to further reduce the need for face-to-face interaction. The financial technology companies found themselves in the position to leverage advancements in fields such as data analytics and artificial intelligence as well as the new financial paradigm brought by blockchain technology thus making technological innovation a top priority to meet these new customer needs. As the tendency of the financial sector as a whole to further embrace digitalization becomes more apparent, so does the protection of customer data become more complex as cyber-attack vectors increase in complexity aided by an ever-expanding attack surface. We argue that the rapid pace in which technological advancements are adopted in the financial services sector must be accompanied by responsible cyber security policies and regulations enforced from both the technological and human standpoints. We will provide an overview on the pace in which cybercrime in the financial sector grew in intensity as FinTech moved towards an end-to-end approach, the most common cyber threats which affect the financial sector as well as why cyber threat management should not be limited to a reactionary approach.

THE NEED TO ELIMINATE MISMANAGEMENT AND CORRUPTION IN ISLAMIC SOCIAL FINANCE INSTITUTIONS

Semasa pandemik COVID-19, telah jelas bahawa kewangan sosial Islam (ISF) perlu diinstitusikan disebabkan ketidakcukupan kewangan komersial Islam dalam menyediakan penyelesaian kewangan yang mencukupi untuk mencapai kewangan menyeluruh. Oleh yang demikian, penumpuan ISF dengan kewangan komersial Islam sedang terserlah manakala penginstitusian ISF menunjukkan momentum global. Walau bagaimanapun, setakat ini, tiada tatacara tadbir urus komprehensif yang digubal untuk mengawal selia institusi ISF bagi membimbing institusi terbabit dalam menawarkan produk dan perkhidmatan kewangan mereka mengikut parameter Syariah termasuk mengelakkan rasuah. Oleh itu, objektif penyelidikan ini adalah untuk meneroka salah urus dan amalan rasuah yang wujud dalam mengurus ISF dan mencadangkan cara untuk mengatasinya. Bagi mencapai objektif, kajian ini menggunakan analisis dokumen sebagai metodologi penyelidikannya untuk menyemak dan membincangkan pengurusan terpilih dan amalan rasuah institusi ISF yang dilaporkan di seluruh dunia. Adalah dijangkakan bahawa penemuan dari kajian ini akan membantu penggubal dasar, badan penetapan standard untuk kewangan Islam dan institusi ISF untuk menyedari kepentingan mengamalkan amalan tadbir urus yang baik untuk membawa ISF ke peringkat seterusnya. Penyelidikan lanjut boleh dijalankan untuk mengkaji keberkesanan menerima pakai amalan tadbir urus yang baik oleh institusi ISF dan implikasi menerima pakai amalan tersebut.Alternate :During the COVID-19 pandemic, it became apparent that Islamic social finance (ISF) must be institutionalised due to inadequacies of Islamic commercial finance in providing adequate financial solutions to achieve financial inclusion. As such, the convergence of ISF with Islamic commercial finance is emerging while institutionalisation of ISF is gaining momentum globally. However, so far, there is no comprehensive governance code enacted to regulate the ISF institutions to guide them in the offering of their financial products and services within the parameters of Shari'ah, which include avoidance of corruption. Therefore, the objective of this research is to explore the existing mismanagement and corrupt practices found in managing the ISF and to recommend ways to overcome them. To meet its objective, this study adopts document analysis as its research methodology to review and discuss the selected management and corrupt practices of ISF institutions reported worldwide. It is anticipated that findings of this paper would assist policymakers, standard-setting bodies for Islamic finance, and ISF institutions to realise the significance of adopting good governance practices to take ISF to the next level. Further research could be undertaken to study the effectiveness of adopting good governance practices by ISF institutions and the implications of adopting such practices.

COVID -19 and Digital Financial Inclusion: Policies and Innovation That can Accelerate Financial Inclusion in a Post-COVID World Through Fintech

The COVID-19 pandemic came as a shock, prompting governments around the world to impose lockdowns to prevent the disease from spreading. Demands of social distance and quarantine measures forced millions of people to embrace digital banking tools for the first time. Many people began using e-commerce, online education, and other services sparking interest in digital financial instruments. The pandemic provided an opportunity for the banking sector's digital revolution by improving financial inclusion chances. Hence, this study aims propose new policies and methods that governments might use to increase financial inclusion in the post-COVID-19 environment by utilising fintech products. Using secondary sources of data through documentary analysis, the study discovered the importance of investing in better infrastructure that can promote better payment services through fintech, increase trust in the use of fintech financial services, investment in cybersecurity of fintech financial services and investment in artificial intelligence among other initiatives. The study concludes that following this recommendation can help to further improve financial inclusion prospects even after the COVID-19 pandemic.

The Quality of the Digital Ecosystem in the Financial Sector

The purpose of the study of the digital transformation of the economy and its financial sector is not so much a quantitative as a qualitative assessment. The digital economy shows the emergence of the phenomenon of platform and ecosystem quality and is defined in different sectors of the economy. The sector of services to business is growing in innovation-driven and efficiency-driven economies. It has appeared and is growing in the Russian Federation. Within the framework of the platform economy and the ecosystem economy, these changes allow defining a new quality of financial and non-financial services. The range of services of banking ecosystems, financial and non-financial companies within these systems is changing. In the financial sector the ecosystems of companies and banks are expanding not only the opportunities for distance selling, but also the opportunities for green financing of economic growth. Therefore, the analysis of the financial traps of sustainable development and ESG (environmental, social, government) growth is of particular interest. From the viewpoint of systemic quality, the approach to green financing of economic growth is changing. Two new factors—digitalization and coronavirus pandemic determine the opportunities and boundaries of economic development today. Both are frame factors, introduced or non-economic ones that allows to use the institutional analysis tools. The world experience of stimulating, motivating and transferring institutions includes financial (credit rates, subsidizing bond loans, etc.) and non-financial (funds, ratings, etc.) tools to achieve a new quality of growth. The transformation of financial markets involves the redistribution of financial flows in favor of companies with an ESG policy. The main conclusion: the transformation of financial markets involves the redistribution of financial flows in favor of companies with ESG policies and is an indicator of qualitative changes. © 2022, The Author(s), under exclusive license to Springer Nature Switzerland AG.

‘Getting a grip’? Phenomenological insights into handling work place in London’s Soho

How are working lives shaped by the demands and expectations associated with a particular workplace? And how are work identities enacted to demonstrate a capacity to cope with place-based demands, expectations and associations? Drawing on insights from phenomenological perspectives on space, place and situated experience, particularly Merleau-Ponty's concept of 'grip', and interview data drawn from longitudinal research with men and women working in London's Soho, this article shows how working lives and identities are situated within, and enacted through, practices that involve developing and demonstrating a capacity for place handling. The analysis shows how this is negotiated by those working in iconic locales in which their working lives and identities are shaped by meanings that are both evolving and enduring, and that require them to get and maintain a demonstrable grip on the setting in which they work. In contributing to a growing interest in understanding working lives as situated phenomena, the article challenges the idea that work is increasingly place-less, particularly in the wake of the COVID-19 pandemic and the digitalization of work accelerated by it, emphasizing how where work takes place continues to matter to how it is enacted and experienced.

Impact of Covid - 19 on Corporate Governance Constitution and Firm Performance in the Indian Banking Sector

Various measures in the form of providing the adequate loan moratorium, deferment of net stable funding ratio, ease of working capital financing, reduction of the cash reserve ratio, and cutting down the repo and reverse repo rates by more than 75 - 90 bps have been implemented by RBI from time to time to provide the financial relief to the Indian banking sector (Building a More Resilient Financial System in India through Governance Improvements, RBI Report, 2021, p.2-5). While the regulatory authority, RBI, focused entirely on providing economic relief to the Indian banks, no key action is taken by it to ensure those clear regulatory and supervisory standards concerning appointment, roles, compensation, and evaluation of the board of directors, audit committees are followed at an implementation level. (2021) found the existence of abnormal negative returns given by top mutual funds during the period, thereby raising concerns about the negative returns on the investment made by the general public in the mutual fund industry. [...]studies empirically proved that good corporate governance reflected through appropriate board composition, board diversity, and suitable auditors' council formation positively influences the operating results of the sample firms (Cheng, 2008;Latif, 2013;Bhatt et al., 2015;Pekovic et al., 2021;Herbert et al., 2021).

Digital financial literacy among adults in India: measurement and validation

The ongoing COVID-19 pandemic has considerably promoted the usage of Digital Financial Services (DFS) in India. Therefore, exploring the various determinants influencing the DFS users is crucial for the DFS providers to understand their customers better. This study aims to identify, measure, and validate the determinants of Digital Financial Literacy (DFL) from the Indian adults who use Digital Financial Services. A sample of 384 adult DFS users from India was surveyed using a self-administered questionnaire in 2021. A multidimensional scale was developed to measure the Digital Financial Literacy in this study. The results exhibit that Digital Knowledge, Financial Knowledge, Knowledge of DFS, Awareness of Digital Finance Risk, Digital Finance Risk Control, Knowledge of Customer Right, Product Suitability, Product Quality, Gendered Social Norm, Practical Application of Knowledge and Skill, Self-determination to use the Knowledge and Skill and Decision Making are the determinants of DFL among the adults in India. Further, the users of DFS without DFL will face numerous challenges such as inability to complete the transaction, financial loss and privacy breach, etc. Hence, the study concludes that DFL is prerequisite to use DFS effectively.

Towards an Understanding of FinTech Users’ Adoption: Intention and e-Loyalty Post-COVID-19 from a Developing Country Perspective

Earlier literature has shown that the implementation of FinTech innovations is not only determined by banks, financial institutions, or government support, but also by the perception and experiences of FinTech users. FinTech research has shown encouraging findings from scholars in developed countries. However, little is known about the users’ acceptance and use of FinTech in Jordan. The aim of this study is to investigate the determinants of users’ intentions and e-Loyalty toward FinTech adoption in Jordan post the COVID-19 era. A conceptual framework was developed by integrating the four original constructs of the unified theory of acceptance and use of technology (UTAUT), namely performance expectancy (PE), effort expectancy (EE), social influence (SI), and facilitating conditions (FC), with three additional factors: personal innovativeness (PI), financial literacy (FL), and uncertainty avoidance (UA). In addition, the proposed model considered the e-Loyalty of FinTech users as a consequence of having a good FinTech experience. A quantitative approach using a cross-sectional online questionnaire was applied to collect data from 423 FinTech users. Data were analyzed utilizing structural equation modeling (SEM) based on AMOS 26.0 software package. The findings revealed that UA has a moderating effect on the relationship between FC and users’ intentions. Also, PI has a significant impact on PE and EE. While PE, SI, and FC are factors that enhance behavioral intentions. In return, it builds users’ e-Loyalty toward FinTech services and is deemed a new normal behavior. This study may help FinTech service providers and policymakers better understand the, currently relatively low, usage rate of FinTech, and how it contributes to the development of strategies that boost the acceptance and e-Loyalty of FinTech by Jordanian users after the COVID-19 era, where FinTech is still considered an innovation.

Not All Churn Customers Are the Same: Investigating the Effect of Customer Churn Heterogeneity on Customer Value in the Financial Sector

This research suggests a way to sustain a firm’s business by focusing on the economic aspects of relationship marketing by managing the heterogeneity of churn customers. In general, firms have regarded churn customers as a homogeneous segment, for they have not been conscious that churn ego can be various. However, customer churn can be divided into voluntary and involuntary, implying that firms should reform the retention strategy by focusing on egos that seem homogenous but are heterogeneous in terms of churn behavior. Using a multiple regression model, this study analyzed customer data from an insurance company to investigate the heterogeneous impacts of churn customers. It measured the impact based on the period and revenue in the second lifetime, comprehensively representing customer satisfaction. Empirical results show that customer churn heterogeneity significantly affects customers’ second-lifetime behavior. The analysis reveals how the firm effectively performed customer regaining initiatives and successfully maintained persistency. This research also concludes that voluntary and involuntary churn occurred by intrinsic and extrinsic motivation. Finally, this research implicates the retention strategy that differs from the heterogeneity to achieve a firm’s high performance and suggests an empirical method of spurious loyalty avoidance by hedging loyal customer selection risk.

Local Government Debt, Financial Circle, and Sustainable Economic Development

Local government debt is the biggest “gray rhino” of China’s economy and one of the most significant factors affecting the sustainability of economic growth. We use the macroeconomic data of China’s real economy development level and local government debt from 2000 to 2020 to investigate the impact of local government debt on the real economy using the spatial Durbin model, focusing on the impact of the local government debt scale on the development of the real economy in jurisdictions and non-jurisdictions and the intermediation effect of finance under the geospatial correlation characteristics of economic development. The results show that the spatial correlation of the real economy between jurisdictions prevails and the correlation deepens over time. The scale of local government debt in China has exceeded a reasonable threshold, and the crowding-out effect of debt expansion on the real economy is obvious and not limited by jurisdictions, with significant spatial spillover effects. Financial marketization can effectively mitigate the crowding-out effect of local government debt on the real economy. These findings provide useful references for mapping the correlated development characteristics of local government debt and the real economy in China, effectively preventing local government debt risks and high leverage of the real economy and financial systemic risks, and providing effective insights for other countries to resolve government debt problems, prevent crises, and promote local economic development.

Financial literacy and quality of life: a moderated mediation approach of fintech adoption and leisure

Purpose>This study explores the relationship between financial literacy and quality of life (QoL). The study further examines the mediating effect of fintech adoption and the moderating effect of leisure on the relationship between financial literacy and QoL.Design/methodology/approach>Using convenience sampling, 345 respondents participated in a cross-sectional survey. To test the moderated mediation hypotheses, the PROCESS macro was used.Findings>The results reveal the mediating effect of fintech adoption on the relationship between financial literacy and QoL, highlighting the importance of digital literacy in an increasingly digitalized society. Moreover, leisure moderates the mediating relationship. Individuals with high leisure are more likely to perceive the uncertainties and risks associated with new technology optimistically – an observation supported by existing literature on the relationships among leisure, perceived freedom, and internal locus of control.Practical implications>Financial literacy must incorporate digital literacy in order to utilize innovative technology for more efficient financial management. Additionally, having a sense of control over life outcomes can lead to well-being.Originality/value>Previous research on fintech adoption is mostly related to financial inclusion for the unbanked population in underprivileged rural areas. Here, fintech usage by the general public is the focus. The study also reveals the significance of leisure, as those who have high financial literacy are more likely to adopt fintech when they have more freedom in their lives, which leads to higher QoL.Peer review>The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-10-2021-0633.

FinTech Adoption among Online Grocery Buyers during COVID-19 Lockdowns in Nepal

FinTech has not only become a buzzword but also brought several business opportunities in the financial world, with the potential to increase financial inclusion, enhance people's daily lives, and spur growth. The issue of online buyers' knowledge about FinTech adoption has emerged from the rapid trend of digital technology in Kathmandu Valley. It also suggests that demographic variables (age and gender) and digital activity (internet experience and level of awareness) mitigate the major correlations. This paper aims to understand online grocery buyers' prior knowledge imprint in FinTech adoption during COVID-19 lockdowns. An exploratory research design was adopted, and data were collected through structured questionnaires using both descriptive and inferential statistics with the help of structural equation modeling. We find that the most respondents are aged twenty-one to forty, showing that most youth are attracted to technological innovation in FinTech (e-commerce and e-banking). We find that two-thirds of online buyers in Kathmandu Valley are facing the challenge of FinTech adoption due to slow internet and lack of awareness about its applications. The structural equation modeling shows that six out of eight constructs are fit and validated with the model. Attitude has a significant effect on actual purchases, whereas trust does not play a partial mediating role between dependent and independent variables. The internet as a digital marketplace has become an important part of marketing strategy and customer-relationship management. Thus, internet issues should be solved immediately with stable connections by internet service providers.

Marketing of Products and Services by Commercial Banks for Financial Inclusion In India -A Decennium Study

In the economic development of a nation, banks occupy an important place. Commercial banks as financial institutions have also emerged as significant sources of funds to industry by virtue of which they constitute an important element of the institutional structure of the capital market in India. Banks assist the establishment and development of well-economic infrastructure for better living standards and are a good source for the procurement of credit to vulnerable groups. They initiated varied financial products and services for inclusive growth at affordable costs. The main purpose of the study is to identify the specific role played by commercial banks in India for achieving financial inclusion. In this research, Firstly, the authors will talk about the significance of financial inclusion in detail;later, the focal point is on the initiatives and role of commercial banks to achieve financial inclusion. The study is based on a systematic review of the literature. The researchers have reviewed the literature of the last decade to realize the financial inclusion growth through the banks. A longitudinal manner literature review has been carried out. The findings of this review paper suggested that various significant contributions rendered by the Indian banking sector towards inclusive growth and to the unbanked populace are Bank branch penetration, Setting up of BC/BF outlets to a large extent, no-frill accounts opening with nil or no balance, Expansion of ATM density in rural and semi-rural areas, Rendering flexible credit facility to MSMEs, SHGs and Villagers to make them economically strong, the introduction of technology-based initiatives such as online banking, Mobile banking, telebanking, Kiosks, and smart cards, simplified KYC norms, distributing General credit cards and Kisan credit cards, and enhancing the financial literacy among the public. The study also concentrates on the performance of banks for financial inclusion before and after the adoption of ICT technology in India.

The Impact of Digital Transformation on Staffing Strategy in Banking Sector: A Case Study of Egypt

Purpose: The Egyptian banking sector adopts an expansion strategy in the field of digital transformation to face the competition resulting from the entry of ICT companies, the repercussions of the Corona virus and the spread of financial technology companies in the banking services market. This trend offers multiple benefits to banks and customers, including ease of conducting transactions, reducing operating expenses, and meeting the needs of customers who prefer banking transactions via the Internet and smart phones, On the other hand, it introduces wide changes to the size and quality of banking jobs in the future, and threatens the disappearance of some of them ,therefore this study analyses empirical evidence of the impact of the digital transformation on staffing strategy in the Egyptian banking sector. Design/Methodology/Approach: This study depends on the analysis of secondary data obtained from the reports of the Central Bank of Egypt on the indicators of digital transformation and the number and quality of banking staffs during the period from 20162021, using the analysis of correlation and regression coefficients. Findings: The results of the study indicate that there is no negative impact of digital transformation on new staffing operations in the short term, because the rate of bank penetration into the banking services market is still low and therefore Egyptian banks are expanding their traditional branch network alongside digital banking services channels. This transformation has also created a new type of job that keeps pace with banking digitalization, while in the long term digital transformation threatens the disappearance of some jobs to be replaced by artificial intelligence, internet banking, mobile banking and electronic wallets. Originality/Value: The novelty of this study is to examine the relationship between digital transformation indictors and the size and quality of staffing in the Egyptian banking sector. Practical Implications: The importance of this study is to provide recommendations to the HR management in Egyptian banks to deal proactively to deal with the potential impacts of digital transformation in the banking sector. Limitations/implications: There are limitations to the results of this study represented in the insufficiency of the study period, and there are many factors affecting the size and quality of employees in the banking sector other than digital transformation. In addition, the study relied on the method of quantitative analysis of the study variables. Hence further studies can be carried out with different methodologies such as surveys, case studies and qualitative analysis methods

THE EFFECTS OF GLOBAL ECONOMIC CRISES ON PERFORMANCE OF PARTICIPATION BANKS: THE CASE OF THE COVID-19 OUTBREAK

Türkiye'de katılım bankaları adı altında faaliyet gösteren Islami bankacılık uygulamalarının etkinliǧi ve finans sistemi içerisindeki payı giderek artış göstermiş, söz konusu bankaların sundukları ürünler sayesinde, tasarrufların finansal sisteme kazandırılmasında, yurtiçinden olduǧu kadar yurtdışından da kaynak temininde ve kaynakların çeşitlendirilmesinde önemli ilerlemeler saǧlanmıştır. Faizsiz işlemler üzerine inşa edilen Íslami bankacılık sisteminin küresel nitelikli krizlerden etkilenme düzeylerinin tespit edilmesi, sistemin etkinliǧinin anlaşılmasına ve aksayan yönlerine yönelik gerekli iyileştirmelerin yapılmasına imkân verecektir. Bu çerçevede çalışmamızda 2008 küresel finans krizi ve Covid-19 salgını kaynaklı küresel ekonomik/finansal sorunlar karşısında Türkiye'de faaliyet gösteren katılım bankalarının performanslarında ortaya çıkan gelişmeler mevduat bankalarıyla karşılaştırmalı olarak ele alınmıştır. Sistemdeki yapısal kırılmaları dikkate alan Gregory-Hansen eş bütünleşme testi kullanılarak, işletme giderlerinin aktiflere oranı, finansman-mevduat (katılım fonu) oranı, sorunlu finansman ve sermaye yeterlilik oranı göstergelerinin aktif karlılıǧı üzerindeki etkileri analiz edilmiştir. Elde edilen bulgulara göre, 2008 küresel finans krizinden sonra katılım bankalarının performansında 2010 yılında (Krizin Avrupa'da borç krizine dönüştüǧü dönem) bir kırılma meydana gelmiş, küresel salgın sürecinde ise herhangi bir kırılma oluşmamıştır. Mevduat bankaları açısından ise, küresel finans krizinin hemen arkasından 2009 yılında bir kırılma oluşmuştur. Covid-19 sürecinin mevduat bankaları üzerinde bir kırılma oluşturmadıǧı çalışmanın diǧer bulguları arasında yer almaktadır.Alternate :The efficiency of Islamic banking practices operating under the name of Participation Banks in Turkey and their share in the financial system have gradually increased, and thanks to the products offered by these banks, significant progress has been made in bringing savings into the financial system, in obtaining resources from abroad as well as from within the country, and in the diversification of resources. Determining the impact level of global crises to the Islamic banking system, which is built on interest-free transactions, will enable the efficiency of the system to be determined and the necessary improvements to be made for the faulty aspects. In this context, in our study, the developments in the performance of participation banks operating in Turkey in the face of global economic/financial problems caused by the 2008 global financial crisis and the Covid-19 pandemic are discussed in comparison with deposit banks. By using the Gregory-Hansen cointegration test, which considers the structural breaks in the system, the effects of the ratio of operating expenses to assets, financing-deposit (participation fund) ratio, non-performing financing ratio, and capital adequacy ratio indicators on the return on assets were analyzed. According to the findings, there was a break in the performance of participation banks in 2010 (the period when the crisis turned into a debt crisis in Europe) after the 2008 global financial crisis, but no break in the pandemic process. In terms of deposit banks, a break occurred in 2009, right after the global financial crisis. Other findings of the study include that the Covid-19 process did not create a break on deposit banks.