International Journal of Banking, Finance and Insurance Technologies

Enhancing the Credibility of Sustainability Disclosure and Assurance: A Behavioral–Probabilistic Framework and Institutional Market Evidence from an Emerging Economy

Amin El-Sayed Ahmed Lotfy — 2026-04-20

Purpose and Design: This study develops and empirically validates a behavioral probabilistic framework to explain how the credibility of sustainability disclosure and assurance affects financial outcomes in banking and capital market institutions. By modeling non-linear cognitive uncertainty and institutional moderation mechanisms, the study provides a behavioral account of why assurance credibility varies across regulatory and market environments. The research integrates theoretical development with comparative empirical evidence from an emerging economy context.

Method and Approach: A mixed method design is employed, combining Structural Equation Modeling (SEM), instrumental variable estimation and probabilistic simulation techniques. The empirical analysis draws on sustainability reports and external assurance statements issued by banks and listed firms over the period 2020–2024. Behavioral constructs capturing cognitive uncertainty, bias and ethical framing are incorporated to assess how decision related interference influences assurance credibility and its financial consequences. Full transparency of measurement instruments, correlation matrices and econometric diagnostics is provided to ensure replicability and independent evaluation.

Findings: Results indicate that higher quality sustainability disclosure significantly enhances assurance credibility, which in turn reduces firms’ cost of capital and improves market liquidity. Cognitive uncertainty weakens the disclosure assurance relationship, while governance intensity and banking integration strengthen the financial impact of credible assurance.

Originality/Value: The study reconceptualizes sustainability assurance as a behavioral probabilistic process shaped by cognitive and institutional factors rather than a purely deterministic verification mechanism, thereby extending the behavioral foundations of auditing and ESG reporting in emerging markets.

Theoretical, Practical and Social Implications: The framework advances research at the intersection of sustainability assurance, behavioral auditing and institutional finance. It offers regulators and practitioners structured guidance for strengthening assurance credibility and supports improved transparency, reduced information asymmetry and more sustainable financial decision-making.

From Incentives to Industrial Confidence: Operationalizing Contractual Accountability for Anchoring Value-Creating Manufacturing Investment

Amin El-Sayed Ahmed Lotfy — 2026-05-04

Purpose: This study addresses the persistent failure of incentive-based industrial policies to generate sustained manufacturing investment in high uncertainty economies. It advances the argument that manufacturing investment does not materialize in response to fiscal incentives alone, but rather when value creation becomes institutionally protected, contractible and accountable. Accordingly, the study aims to reconceptualize industrial investment attraction through the lens of industrial confidence, shifting the policy focus from short-term incentives to durable contractual accountability mechanisms.

Methodology/Design/Approach: The paper adopts a conceptual institutional design methodology, integrating insights from accounting, public finance, governance and industrial policy literatures. It develops an accountability centered framework grounded in comparative analysis of successful industrial transformation experiences across selected advanced and emerging economies. The framework is operationalized through contract-based mechanisms that align incentives with measurable industrial outcomes the framework is theoretically generalizable, yet its applied institutional design and evaluation are developed with specific reference to high-uncertainty governance environments, particularly Egypt.

Findings: The study demonstrates that industrial investment becomes sustainable only when value creation is transformed from an ex-post outcome into an ex-ante contractual condition. The proposed framework shows how contractual accountability reduces institutional risk, stabilizes expectations and anchors manufacturing investment by linking fiscal incentives, regulatory commitments and performance metrics within a unified governance structure.

Originality/Value: This research offers a novel contribution by reframing value creation as a precondition rather than a consequence of manufacturing investment. It moves beyond traditional incentive-centered models and introduces an operationalizable accountability logic capable of restoring industrial confidence in risk-prone environments.

Theoretical, Practical, Social and Economic Implications: Theoretically, the study extends accounting and governance scholarship by embedding contractual accountability within industrial policy design. Practically, it provides policymakers with a scalable framework for anchoring value creating manufacturing investment. Socially and economically, the framework supports job creation, domestic production deepening, and long-term trade balance improvement through sustainable industrial development.

Geopolitical Tensions, Trade Disruptions and Global Economic Uncertainty: Implications for Economic Resilience in Emerging Economies

Malraj B Kiriella — 2026-05-21

The contemporary global landscape is increasingly shaped by geopolitical tensions, armed conflicts and shifting power dynamics, which are redefining international trade, disrupting supply chains and intensifying economic uncertainty. These developments have far-reaching implications, particularly for emerging economies that are highly integrated into global systems yet remain structurally vulnerable to external shocks. This editorial examines how geopolitical instability affects economic resilience through trade fragmentation, rising costs and supply chain disruptions, while also highlighting the social consequences of these shifts. Special attention is given to the tourism sector as a crisis-sensitive component of economic systems. The editorial further explores governance and policy responses required to navigate these challenges and concludes by outlining the need for integrated, multidisciplinary approaches to strengthening resilience in an increasingly uncertain global environment.

From Disruption to Regulated Convergence: EU Regulatory Frameworks for FinTech and Digital Financial Services

Laszlo Vertesy — 2026-06-17

The growth of Financial Technology (FinTech) has created opportunities for innovation and growth in digital financial services across the European union, driven by greater interaction between technological innovation and financial regulations. This article reviews the emergence of various EU regulatory initiatives that have transformed the FinTech industry from a disruptive innovation into an established, compliant financial infrastructure. The study employed a qualitative, interdisciplinary approach combining doctrinal legal analysis, comparative regulatory evaluation and techno-economic analysis. Beyond reviewing individual regulatory instruments, the research develops a conceptual framework of regulated convergence to analyse how emerging EU regulatory initiatives collectively reshape the governance architecture of digital financial services. It analysed the various major EU regulatory initiatives that have strategic implications (including the PSD3, PSR, IPR, FiDA, DORA, AI act, MiCA and CCD2); findings indicate that the EU is working to build an integrated governance framework for digital financial services based upon interoperability, operational resilience, consumer protection and technology-based accountability. In parallel, the evolution of embedded finance, open finance ecosystems, artificial intelligence, tokenisation and Regulatory Technology (RegTech) has changed the way financial services operate by leveraging data and providing platforms for conducting business. The primary trend in European FinTech is shifting from disruptive decentralisation to regulated convergence between technological innovation, institutional governance and traditional financial institutions.

Comparative Analysis of Banking Product Performance in Indian Commercial Banks

Koonal Sil — 2026-06-29

The Indian banking sector has undergone significant transformation due to technological advancement, financial liberalization, and increasing customer expectations. Commercial banks continuously introduce diversified banking products such as savings accounts, fixed deposits, loans, credit cards, internet banking and mobile banking services to enhance customer satisfaction and profitability. This study focuses on the comparative analysis of banking product performance in Indian commercial banks, particularly comparing public sector and private sector banks. The research evaluates customer perception, service quality, accessibility, profitability, digital banking efficiency and product innovation. Primary data may be collected through structured questionnaires from bank customers, while secondary data can be obtained from annual reports, RBI publications, journals, and websites. Statistical tools such as percentage analysis, mean, chi-square test, correlation, and regression analysis can be used for interpretation. The findings are expected to identify differences in product performance and customer satisfaction between banks and suggest measures for improving banking products and services.