Adaptation and Risk Management Strategies: Banking Practitioners' Experiences in Responding to the Impact of Monetary Policy and Financial Regulations
Main Article Content
Abstract
This study explores the subjective experiences of banking practitioners in adapting to the impacts of monetary policies and financial regulations, focusing on risk management strategies. The financial sector faces increasing volatility due to dynamic policy changes, posing significant challenges for risk managers. Despite extensive research on risk management frameworks, limited studies have examined the lived experiences of practitioners navigating regulatory complexities. Utilizing a phenomenological approach, this research investigates how banking professionals adapt to policy fluctuations and what strategies they employ to mitigate associated risks. In-depth interviews were conducted with risk managers and financial executives from commercial banks impacted by recent economic regulations. Thematic analysis revealed three main themes: adaptive resilience, hybrid risk management strategies, and the perceived efficacy of regulatory compliance. These findings highlight the importance of flexible strategic responses and innovative risk mitigation techniques. This study contributes to a deeper understanding of the adaptive behaviors of banking practitioners, providing valuable insights for policymakers and financial institutions in managing regulatory uncertainties.
Article Details
Section
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Aizenman, J. (2019). A modern reincarnation of Mundell-Fleming’s trilemma. Economic Modelling, 81, 444–454. Scopus. https://doi.org/10.1016/j.econmod.2018.03.008
Alexandre, M., & Lima, G. T. (2020). Combining monetary policy and prudential regulation: An agent-based modeling approach. Journal of Economic Interaction and Coordination, 15(2), 385–411. Scopus. https://doi.org/10.1007/s11403-017-0209-0
Al-Wreiket, A., Ashraf, A. L. I., Al-Sheyab, O. L. A., Kabir Hassan, M., & Julio, I. (2022). Aaoifi accounting standards and a theory of interest-free banking. Singapore Economic Review, 67(1), 45–85. Scopus. https://doi.org/10.1142/S0217590819420074
Besong, S. E., Okanda, T. L., & Ndip, S. A. (2022). An empirical analysis of the impact of banking regulations on sustainable financial inclusion in the CEMAC region. Economic Systems, 46(1). Scopus. https://doi.org/10.1016/j.ecosys.2021.100935
Brunetti, C., Harris, J. H., Mankad, S., & Michailidis, G. (2019). Interconnectedness in the interbank market. Journal of Financial Economics, 133(2), 520–538. Scopus. https://doi.org/10.1016/j.jfineco.2019.02.006
Danylyshyn, B., & Bohdan, I. (2020). Developing a system of anti-crisis measures for Ukraine’s economy in the spread of the coronavirus pandemic. Banks and Bank Systems, 15(2), 1–15. Scopus. https://doi.org/10.21511/bbs.15(2).2020.01
Feyen, E., Alonso Gispert, T., Kliatskova, T., & Mare, D. S. (2021). Financial Sector Policy Response to COVID-19 in Emerging Markets and Developing Economies. Journal of Banking and Finance, 133. Scopus. https://doi.org/10.1016/j.jbankfin.2021.106184
Gebauer, S., & Mazelis, F. (2023). Macroprudential regulation and leakage to the shadow banking sector. European Economic Review, 154. Scopus. https://doi.org/10.1016/j.euroecorev.2023.104404
Hodula, M., & Libich, J. (2023). Has monetary policy fueled the rise in shadow banking? Economic Modelling, 123. Scopus. https://doi.org/10.1016/j.econmod.2023.106278
Ozili, P. K. (2019). Basel III in Africa: Making it work. African Journal of Economic and Management Studies, 10(4), 401–407. Scopus. https://doi.org/10.1108/AJEMS-05-2019-0206
Rejekiningsih, T. W., Kurnia, A. S., & Sugiyanto, F. X. (2022). ANALYSIS OF EFFICIENCY OF INTERMEDIATION FUNCTIONS FROM FINANCIAL INSTITUTIONS AND CONSUMER SURPLUS OF FUNDS IN INDONESIA. International Journal of Economics and Finance Studies, 14(1), 377–408. Scopus. https://doi.org/10.34109/ijefs.20220017
Wójcik, D., & Ioannou, S. (2020). COVID-19 and Finance: Market Developments So Far and Potential Impacts on the Financial Sector and Centres. Tijdschrift voor Economische en Sociale Geografie, 111(3), 387–400. Scopus. https://doi.org/10.1111/tesg.12434
Xing, X., Wang, M., Wang, Y., & Stanley, H. E. (2020). Credit creation under multiple banking regulations: The impact of balance sheet diversity on money supply. Economic Modelling, 91, 720–735. Scopus. https://doi.org/10.1016/j.econmod.2019.09.030
Yang, J., Yu, Z., & Ma, J. (2019). China’s financial network with international spillovers: A first look. Pacific Basin Finance Journal, 58. Scopus. https://doi.org/10.1016/j.pacfin.2019.101222
Yang, L., van Wijnbergen, S., Qi, X., & Yi, Y. (2019). Chinese shadow banking, financial regulation and effectiveness of monetary policy. Pacific Basin Finance Journal, 57. Scopus. https://doi.org/10.1016/j.pacfin.2019.06.016
Zenchenko, S., Strielkowski, W., Smutka, L., Vacek, T., Radyukova, Y., & Sutyagin, V. (2022). Monetization of the Economies as a Priority of the New Monetary Policy in the Face of Economic Sanctions. Journal of Risk and Financial Management, 15(3). Scopus. https://doi.org/10.3390/jrfm15030140
Zhang, D., He, Y., & Lu, M. (2024). Is energy firms’ investment behavior more sensitive on corporate perception of monetary policy? Energy Economics, 136. Scopus. https://doi.org/10.1016/j.eneco.2024.107749