International Journal of Banking, Finance and Insurance Technologies

Systematic Comparison, Evaluation and Identification of Robust Model to Forecast the Closing Price of S&P 500 Financial Sector through Classical and AI-Based Approaches

2025-01-09T21:30:09-06:00

S&P 500 is the largest and state-of-the-art stock market index in North America, which attracted a wide range of audience. The primary objective of this study is to compare the widely used four stock forecasting approaches: Long Term- Short Term Memory (LSTM), Gated Recurrent Unit, (GRU), Convolutional Neural Network, (CNN) and traditional forecasting approach: Auto- Regressive Integrated Moving Average (ARIMA) to identify the best and more robust forecasting model for daily and weekly closing price on the S&P 500 financial sector. Thus, we developed and compared the performance and quality of these AIbased approaches with baseline traditional ARIMA model using well- defined two statistical metrics, Root Mean Square Error (RMSE) and Mean Absolute Error (MAE) as the evaluation criterion. In the scope of our study, we have found that the LSTM outperforms (with more than 15% improvement in RMSE and with more than 30% improvement in MAE compared to ARIMA) 2 out of 3 train/test data splits compared to other proposed deep learning approaches including GRU and traditional ARIMA models with respect to two widely used RMSE and MAE evaluation metrics for daily closing price forecasting in the S&P 500 Financial Sector. Additionally, in the weekly closing price forecasting models, the traditional ARIMA model outperforms all deep learning models on 2 out of 3 train/test data splits with respect to the statistical metric RMSE.

Strengthening India's Adaptation Finance: Introducing the National Adaptation Finance Framework

2025-01-09T21:29:25-06:00

India faces significant climate risks due to its geographical and socio-economic vulnerabilities. Current financial frameworks for adaptation, such as the National Adaptation Fund for Climate Change (NAFCC), are insufficient to address the growing demand for resources. This research highlights the need for a National Adaptation Finance Framework (NAFF) to enhance financial resource allocation, stakeholder coordination, and mobilization of diverse funding sources. The objective is to design a robust, inclusive, and sustainable NAFF to address adaptation finance gaps, streamline resource allocation, and ensure that the most vulnerable communities receive adequate support. The study uses qualitative methods, including literature reviews, secondary data analysis, and case studies of international adaptation finance frameworks. It identifies barriers to adaptation finance in India, such as bureaucratic inefficiencies, private sector disengagement, and regional disparities, while benchmarking global best practices to inform the proposed framework. The research finds that India requires approximately $206 billion annually by 2030 for adaptation needs, with current funding addressing less than 10% of the requirement. Sectoral gaps, insufficient private sector involvement, and misaligned funding priorities exacerbate vulnerabilities. The proposed NAFF incorporates innovative financing tools, equitable resource distribution, and community-driven strategies, aligned with global mechanisms like the Green Climate Fund (GCF). A well-designed NAFF can bridge India's adaptation finance gap, leveraging public
and private resources while ensuring transparency and inclusivity. By fostering collaboration across sectors and levels of governance, the framework can enhance climate resilience and contribute to sustainable development goals. This research provides a blueprint for addressing India's adaptation finance challenges and advancing its climate resilience agenda through a strategic and inclusive national framework.

Investigating the Impact of Corporate Social Responsibility on Relationship Quality Performance and Outcomes

2025-01-09T21:29:12-06:00

Facing drastic changes in business environment, banks are incorporating Corporate Social Responsibility (CSR) as parts of customer relationship management strategies in quest for customer loyalty. Despite the importance of CSR, research on the influences of CSR on relationship quality and customer loyalty is scarce. This study aims to examine the relationships between CSR, relationship quality and customer loyalty in banking context in Hong Kong. Through convenient sampling method, a total of 212 online surveys were collected. The findings discovered CSR (Philanthropic responsibility, Ethical responsibility, Legal responsibility, and Economic responsibility) affected relationship quality and customer loyalty. Among the dimensions, Philanthropic responsibility exhibited significant influence on relationship quality while relationship quality showed a significant impact on customer loyalty. The study provides theoretical implications for service research and service encounter management. It will practically add-value to managers and practitioners in designing and developing CSR strategies to promote long-term loyalty between banks and their clients.

The Causality Between Public Expenditures and Economic Growth in Recent Times; Evidence from Turkey

2025-01-09T21:28:56-06:00

Provided the results of the political elections in the economy of turkey together with the decision made by the government to foster growth and minimize spending, this research primary looks at the causality trend between total government expenses and growth of national income. Using World bank data from the period 2000 to 2021. The granger causality fails to confirm causality between government expenditure and national income the Toda Yamamoto concretely confirms bi-directional or two-way cause effect relationship between government income and total government expenses. Also, findings from the ARDL estimation, show that an increase in national income will reduce government expenditure, and as inflation continue to increase a large portion of government income will be spent.

Decarbonization of Indian Banking: Challenges & Pathways Forward

2025-01-09T21:27:08-06:00

This study examines the challenges for decarbonizing the Indian banking sector, a critical step in India's commitment to the Paris Agreement. The objective is to assess the current status of decarbonization, identify key challenges, and propose strategic solutions to facilitate sustainable banking practices. In this context, the research employs a qualitative approach, analyzing secondary data from literature, policy documents, and industry reports. The novelty of the research lies in its comprehensive assessment of the multifaceted challenges financial, regulatory, technological, and socio-cultural specific to the Indian context. It provides a nuanced understanding of the sector's progress and the barriers it faces, which is crucial for policymakers and banking institutions.

The findings reveal a mixed landscape of decarbonization efforts, with some banks successfully adopted sustainable banking practices, while others struggle with scaling and operational constraints. Key findings indicate that while some Indian banks have made strides in adopting green practics, the sector as a whole is hindered by high costs of green technologies, regulatory uncertainty, outdated technological systems, and a culture resistant to change. The study highlights the need for clear policies, investment in technology upgradation, and a cultural shift towards sustainability within the banking sector.

Whether Banks are Ready for Transition – Indian Scenario

2025-01-09T21:29:52-06:00

Climate risk management including transition risk has been evolving as a critical area requiring ambitious actions to be implemented. India being an emerging economy has dependency on fossil fuels which will continue in short run. Reserve Bank of India as a regulator has been working actively in the area after the Global Financial Crisis (GFC) and has recently come forth with the draft of standard disclosure framework for climate related financial risks, to provide guidance to all the regulated entities. The present study aims to
evaluate theoretically the preparedness of Indian banks towards transition. In the absence of the relevant data, methodological interventions do not seem plausible. However, the study explores the factual investigations as per the latest available reports in this area. It is found that the major scheduled commercial banks have initiated few important and obvious steps towards climate related risk management and disclosures. Case studies suggest that few major banks have moved early towards integration of the sustainability policies in their risk management system and others are still in the process of doing it. Hence, it may be concluded that Indian banks are unceasingly walking towards transition. The future course of action in this area may the statistical/empirical investigation of the readiness of Indian banks once the proper database is available in public domain.