The International Journal of Financial Systems
Financial systems form the backbone of modern economies, comprising a complex network of institutions, markets, regulations, and instruments that facilitate the efficient allocation of resources, risk management, and economic growth. Given the increasingly interconnected nature of our global economy, studying financial systems has become imperative for individuals, organisations, and policymakers alike. The development of financial systems is an ongoing process influenced by a myriad of factors, including technological advancements, regulatory frameworks, and changing market dynamics. Over time, financial systems have evolved from traditional, localised models to globalised, technology-driven ecosystems. Innovations such as digital banking, mobile payments, blockchain technology, and algorithmic trading have revolutionised financial transactions, reshaping the landscape of financial systems. Research on financial systems holds immense importance, as it delves into the intricacies and complexities associated with these systems. By examining various facets such as financial institutions, markets, instruments, regulatory frameworks, and risk management practices, researchers contribute to our understanding of how financial systems function, their efficiency, and their stability. Policymakers rely on this research to formulate effective regulations and policies that promote stability, enhance resilience, and mitigate systemic risks within financial systems. Furthermore, practitioners in the field of finance, including bankers, financial analysts, investment managers, and policymakers, benefit greatly from research on financial systems. These insights enable them to make informed decisions, manage risks effectively, and develop strategies that foster financial intermediation, sustainable economic growth, and financial inclusion. SCOPE The International Journal of Financial Systems welcomes papers from researchers, academics, and practitioners worldwide. We specifically invite contributions that address the following key topics: Financial Institutions Financial Instruments Financial Markets Financial Regulations and Policies Financial Inclusion Financial Literacy and Education Islamic Finance Sustainable Finance Innovative Financial Technology Financial System Stability Financial Integration
Articles
27 Documents
<![CDATA[Technological Innovation of the Crypto-Asset Financial Sector in Indonesia after Law Number 4 of 2023 Concerning the Development and Strengthening of the Financial Sector ]]>
<![CDATA[Izmi, Nurul]]>;
<![CDATA[Siagian, Abdhy Walid]]>
<![CDATA[ The International Journal of Financial Systems Vol. 2 No. 1 (2024) ]]>
Publisher : <![CDATA[Otoritas Jasa Keuangan ]]>
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DOI: 10.61459/ijfs.v2i1.34
<![CDATA[Law Number 4 of 2023 on the Development and Strengthening of the Financial Sector (UUP2SK) has provided changes to all regulatory and supervisory authorities over the operationalisation of cryptocurrencies, which were previously in the hands of the Commodity Futures Trading Supervisory Agency (Bappebti) to the jurisdiction of the Financial Services Authority (OJK). After the enactment of UUP2SK, the authority to regulate and supervise crypto assets is now under the purview of OJK, with the transition of taking over all responsibilities related to crypto assets, but there is no regulation that regulates in detail the procedures for the transfer of authority.]]>
<![CDATA[The Impact of the Law No 4/2023 on the Development and Strength of the Financial Sector (P2SK): Is Crypto Getting Brighter? ]]>
<![CDATA[Eri Puspita, Rosana]]>;
<![CDATA[Iskandar, Iskandar]]>;
<![CDATA[Tandio, Tjondroargo]]>
<![CDATA[ The International Journal of Financial Systems Vol. 2 No. 1 (2024) ]]>
Publisher : <![CDATA[Otoritas Jasa Keuangan ]]>
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DOI: 10.61459/ijfs.v2i1.39
<![CDATA[This study aims to analyze crypto market conditions so they can formulate policy recommendations for OJK. Crypto market conditions were observed using a netnographic approach, using a total sample of 6,267 netizen comments. Data was extracted with NAWALA software, processed with NVIVO, and policy selected with MULTIPOL. The results show a better dynamic in the crypto market development in Indonesia after the issuance of the Law, even though many dynamics still occur. This study suggests that the Financial Services Authority (OJK) take different policies in 2024, 2025, and 2026 in supporting the development of crypto assets.]]>
<![CDATA[Forecasting Bank Stock Trends Using Artificial Intelligence: A Deep Dive into the Neural Prophet Approach ]]>
<![CDATA[Noviandy, Teuku Rizky]]>;
<![CDATA[Hardi, Irsan]]>;
<![CDATA[Idroes, Ghalieb Mutig]]>
<![CDATA[ The International Journal of Financial Systems Vol. 2 No. 1 (2024) ]]>
Publisher : <![CDATA[Otoritas Jasa Keuangan ]]>
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DOI: 10.61459/ijfs.v2i1.41
<![CDATA[This research aims to use Neural Prophet, a deep learning tool, to predict stock prices in the banking sector with high accuracy and useful insights. The model's capability in managing intricate temporal patterns differentiates it, garnering attention from researchers. The significance of this research lies in its potential to enhance stock price prediction precision, especially in the context of banking stocks, offering stakeholders’ deeper insights. The model's efficacy spans stable and volatile market behaviours, making it a valuable tool for informed decision-making in finance. Accurate predictions benefit risk management, facilitating well-informed investment choices in dynamic markets.]]>
<![CDATA[The Impact of Bank Ownership Structure on Green Banking Practices in Indonesia: The Moderating Role of Corporate Governance ]]>
<![CDATA[Kartiko, Nafis Dwi]]>;
<![CDATA[Firmansyah, Amrie]]>
<![CDATA[ The International Journal of Financial Systems Vol. 2 No. 1 (2024) ]]>
Publisher : <![CDATA[Otoritas Jasa Keuangan ]]>
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DOI: 10.61459/ijfs.v2i1.43
<![CDATA[This study aims to analyze the impact of institutional, foreign, and government ownership on green banking disclosure in Indonesia. The sample includes 578 observations of banking companies in Indonesia over the period 2004 to 2021, and is analyzed using the OLS multiple linear regression method. The findings show that institutional and foreign ownership are negatively correlated with green banking disclosure, while government ownership has no significant impact. In terms of corporate governance moderation, this study shows that governance strengthens the positive effect between institutional ownership and green banking disclosure, but weakens the relationship between foreign ownership and green banking disclosure.]]>
<![CDATA[The Determination of Market Conduct Supervision in Increasing Customer Trust and Sense of Security Mediated by the Customer Satisfaction Index ]]>
<![CDATA[Naufalia, Viani]]>
<![CDATA[ The International Journal of Financial Systems Vol. 2 No. 1 (2024) ]]>
Publisher : <![CDATA[Otoritas Jasa Keuangan ]]>
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DOI: 10.61459/ijfs.v2i1.44
<![CDATA[The objective of this research is to find out how the determinants of market conduct monitoring contribute to fostering customer trust and security, supported by the mediating variable customer satisfaction index. The researcher used quantitative research methods from customers of financial service products in DKI Jakarta, then data analysis techniques used SMART PLS 4.0 application and CSI score calculations. The results of this research show that market conduct monitoring has a significant positive determination in increasing customer confidence by 50.2% and customer sense of security by 25.2%, and can be mediated by a customer satisfaction index of 31.4%.]]>
<![CDATA[DeLone & McLean Model and Expectation Confirmation Model in Improving the Role of Digital Product Innovation in the Banking Industry: Evidence from Sharia Banking Aceh Province ]]>
<![CDATA[Yusmita, Fifi]]>;
<![CDATA[Ahlul Aqdi]]>
<![CDATA[ The International Journal of Financial Systems Vol. 2 No. 2 (2024) ]]>
Publisher : <![CDATA[Otoritas Jasa Keuangan ]]>
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DOI: 10.61459/ijfs.v2i2.77
<![CDATA[The three-day disruption of BSI Mobile due to a cyber-attack raised serious data security concerns, especially in Aceh, which relies heavily on Indonesia's largest Islamic banking system due to Qanun No. 11 on Islamic Financial Institutions. This study examines the effects of system quality, information quality, service quality, security, and price value on user satisfaction with mobile banking in Aceh, and its influence on continued usage intention. SEM-PLS analysis of 582 BSI customers and a review of 30 articles shows that service quality, security, and price value significantly enhance satisfaction, driving continued usage, while system and information quality do not.]]>
<![CDATA[What Drives Firms to Enter Carbon Market? An Experimental Evidence ]]>
<![CDATA[Wijayanti, Dwi Marlina]]>
<![CDATA[ The International Journal of Financial Systems Vol. 2 No. 2 (2024) ]]>
Publisher : <![CDATA[Otoritas Jasa Keuangan ]]>
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DOI: 10.61459/ijfs.v2i2.70
<![CDATA[Carbon exchange is a very new issue in Indonesia. Therefore, understanding the potential of carbon exchange to realize Net-Zero Emission is crucial. This study explores the factors that can encourage companies to enter the carbon exchange by understanding behavioral and non-behavioral factors. Psychological theory is also used to explain the motivation of corporate managers in making strategic decisions. This study is a quantitative study using experiments. The experimental design used is 2x2x2 between subjects. Data were analyzed using analysis of variance (ANOVA). The results of this study indicate that regulatory pressure, financial incentives, and international trade are factors that can encourage companies to enter the carbon exchange/carbon market. In addition, carbon trading is unable to outperform carbon taxes in the short term due to cost efficiency and investment costs in companies. In addition, this study can be a reference for policy makers to optimize the role of IDXCarbon in carrying out its functions and encourage more companies to be involved in carbon exchange trading to realize Net-Zero Emission by 2060.]]>
<![CDATA[Digital Payments and Regional Financial Intermediation ]]>
<![CDATA[Fariza Raz, Arisyi]]>
<![CDATA[ The International Journal of Financial Systems Vol. 2 No. 2 (2024) ]]>
Publisher : <![CDATA[Otoritas Jasa Keuangan ]]>
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DOI: 10.61459/ijfs.v2i2.71
<![CDATA[The development of information and communication technology (ICT) in the banking sector leads to the proliferation of digital payments. Using Indonesia’s sub-national (provincial) banking data, we examine how bank loans and savings respond to digital payments. Our results show that digital payments increase transaction efficiency, boost consumption, and ultimately contribute positively to regional output. Digital payments also provide depositors with various investment options that can be accessed from mobile banking apps, thus increasing these investments while decreasing bank savings. These findings provide insights into the positive effects of digital payments on regional financial intermediation and development.]]>
<![CDATA[Utilisation of Demographic Bonus through Securities Crowdfunding Mediated by Financial Literacy, Inclusion and Trust ]]>
<![CDATA[Naufalia, Viani]]>
<![CDATA[ The International Journal of Financial Systems Vol. 2 No. 2 (2024) ]]>
Publisher : <![CDATA[Otoritas Jasa Keuangan ]]>
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DOI: 10.61459/ijfs.v2i2.72
<![CDATA[The threat of the middle-income trap can actually be countered by Indonesia by exploiting and optimising demographic bonus, one of which is by maximising the potential of MSMEs as the largest contributor to national economic growth, namely by providing an alternative financing of Securities Crowdfunding listed in rule No. 16/POJK.04/2021. However, if we look at the demographic bonus conditions in Indonesia, we can see the negative gaps of the demographical bonus conditions, namely the lack of literacy, inclusion, and trust of MSMEs players in digital finance. So, the aim of this research is to find out how the exploitation of demographic bonus can be optimised through the innovation of securities crowdfunding, as well as supported by the mediation variables of financial literacy, inclusion and trust. The researchers used a quantitative research method with primary data in the form of a survey of 393 respondents from MSMEs in DKI Jakarta and its surroundings who are aged 15-49 years, then data analysis technique is Structural Equation Modelling (SEM) with the application SMART PLS 4.0. The results of this study show that securities crowdfunding can optimise the demographic bonus of 76.9%, then the conditions of financial literacy and inclusion can also support the implementation of securities crowdfunding in optimising demographic bonus of 61.2% and 59.7%. Thus, it is expected that the future potential of these securities crowdfunding can really be optimised to be one of the solutions for growing the national economy in the era of demographic bonus. In addition, the research also has implications for several sectors, as well as producing some policy recommendations.]]>
<![CDATA[How Does Banking Innovation Impact Banking Stability in Indonesia? The Moderating Role of Gender Diversity ]]>
<![CDATA[Kartiko, Nafis Dwi]]>
<![CDATA[ The International Journal of Financial Systems Vol. 2 No. 2 (2024) ]]>
Publisher : <![CDATA[Otoritas Jasa Keuangan ]]>
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DOI: 10.61459/ijfs.v2i2.74
<![CDATA[This study aims to examine the impact of banking innovation on banking stability in Indonesia. Using financial data from 46 banks listed on the Indonesia Stock Exchange from 2004 to 2022 with 637 observations, this study applies the Ordinary Least Squares (OLS) method for its analysis. The results of this study show that banking innovation exerts a significant positive influence on banking stability in Indonesia. However, a surprising finding emerges from the moderation of gender diversity which turns out to have a negative effect on the relationship between banking innovation and banking stability, contrary to the literature that often shows a positive effect of gender diversity on firm performance. Additional analysis suggests that despite innovations, SOEs with strict structures and regulations may not be able to fully capitalise on the efficacy of such innovations due to bureaucratic barriers and strict government policies. In contrast, non-SOE firms are more agile and able to implement innovations with higher effectiveness, which contributes to their financial stability. The study also analyses various financial quadrants, showing that the effect of innovation on banking stability varies based on asset characteristics and firm age.]]>
