In the COVID 19 post-pandemic era, sustainable financial systems are increasingly getting the attention they deserve, and policymakers are now moving toward investment and financing decisions based on sustainable development. Green finance plays an important role in mobilizing financial resources and hedging against environmental risk to achieve financially sustainable systems. Moreover, green financial instruments offer viable alternatives for investors and regulators with regard to portfolio management and risk minimization. Over the last few years, financial technology (FinTech) has grown to become one of the most topical areas in the global financial services industry. The development of distributed ledger technology, big data, smart contracts, peer-to-peer lending platforms, biometrics, and new digital has sparked innovation in the financial services industry and the development of new financing and investment strategies. The combination of sustainability and FinTech can help policymakers to achieve ESG targets when making investment and financing decisions.This book showcases a collection of recent advances in green finance and FinTech and explores their impact in achieving sustainable finance, investment strategy-making, and portfolio management. Presenting theoretical frameworks and the latest empirical studies in the field of green finance and FinTech, it offers a valuable asset for academics, professionals, policymakers, regulators, and investors who want to understand in-depth the impact of green finance and FinTech on future investment and financing strategies in the post-pandemic era.
Author(s): Nader Naifar, Ahmed Elsayed
Series: Sustainable Finance
Publisher: Springer
Year: 2023
Language: English
Pages: 303
City: Cham
Preface
Acknowledgments
Contents
About the Editors
Part I: Green Finance, Sustainability, and Investment Strategies
Multicriteria Decision Analysis for Sustainable Green Financing in Energy Sector
1 Introduction
2 Literature Review
3 Identification of Needs, Challenges, and Risks in ESI
3.1 Load Following Power Production
3.2 Duck Curve
3.3 Location of IPP
3.4 Policy Framework and Possible Contradicting Aspects
3.5 Energy Market Design and Operating Conditions
4 Opportunities with Smart Grids
4.1 Application of Multicriteria Decision Methods
4.2 Energy Mix
4.3 Risk Evaluation
5 Discussion
6 Conclusion
References
The Development of the Global Green Finance Market: The Role of Banks and Non-banking Institutional Investors
1 Introduction
2 Understanding Sustainable and Green Economy: Literature Review
2.1 Green Economy as an Integral Part of Sustainable Development
2.2 Conceptual Approaches to the Definition of Green Finance
3 The Current Trends in the Global Green Finance Market
3.1 Green Economy Financing Instruments
3.2 The Main Participants in the Global Green Finance Market
4 Recommendations for the Green Fund Establishment
5 Conclusions and Directions for Further Research
5.1 Concluding Remarks
5.2 Further Research
References
Corporate Social Responsibility and Bank Credit Ratings
1 Introduction
2 Related Literature and Hypothesis
3 Data and Methodology
3.1 Sample and Variables
3.2 Descriptive Analysis
4 Results and Discussion
5 Conclusions
Appendix: MSCI KLD Dimensions of CSR
References
The Impact of Banking on Sustainable Financial Practices Toward an Equitable Economy
1 Why Sustainable Actions Are Crucial?
2 Economic Impact of Climate Change
3 Sustainability Encompasses More than Climate Change
4 Types of Sustainable Financing and Investments
4.1 Case Analysis: Innovative Green Financing Programs for the Agriculture Sector in Indonesia
4.2 Background
4.3 Measures and Actions
4.4 Results and Impact
5 Practical Steps to Sustainable Green Finance Issuance
6 Conclusion
References
Ethical and Socially Responsible Investments in the Islamic Banking Firms: Heart, Mind, and Money: Religious Believes and Fina...
1 Introduction
2 Ethical and Socially Responsible Investments, Optimality and Happiness
2.1 Ethical Reminders Strategy
2.2 Strategic vs. Nonstrategic Donation
3 Ethical and Socially Responsible Investments and Economic Performance, Doing Well and Doing Right
3.1 Social Responsibility as an Incentive Mechanism in the Islamic Financing Contracts: Happiness in Helping Other
3.2 Experimental Design
4 Illustrative Model Analyze
4.1 Donation Intention
4.2 Musharaka (Equity: Participation in a Joint Venture or Joint Ownership)
4.3 Modeling of Diminishing Participation and Acquisition of Capital by the Entrepreneur at the End of the Period
4.4 Bargaining Power and Renegotiation Effects in Contractual Design
5 Organizational Motivations, Religious Affiliations, and Ethical Character: Motivation and Incentives
5.1 Extrinsic Versus Intrinsic Motivation
5.2 Choice Constraints
5.3 Interactions Between Cognitive and Emotional Dimensions Can Lead to Certain Balance: With Reference to the Cognitive Balan...
5.4 Persistence in Believes: Readjustment by Learning
5.5 Believes and Learning
5.6 Contextualizing Rationality in Decision Making: The Bounded Rationality Approach
6 The Islamic Approach of Ethical and Socially Responsible Investments: Compulsory and Voluntary Basis Donations
6.1 Religious Affiliations and Individual Level Decision Making and Organizational Behavior
6.2 Principles of Corporate Social Responsibility and Zakat Mechanism
6.3 Normative Specifications of the Zakat: Rationale Religious Obligation
6.4 Incentives to Perform Zakat
6.5 The Equilibrium of Islamic Financial Framework: Islamic Religiosity vs. Optimality Behavior and Rationality Assumption
7 Conclusion
Appendix: Experimental Instructions
References
Malaysia´s Sustainable Banking Regulatory Framework: Value-Based Intermediation and Climate Change Principle-Based Taxonomy
1 Introduction
2 VBI
2.1 VBI Under the Strategy Paper
2.2 The Voluntary Nature of VBI for IBIs
2.3 Strategies Towards VBI
2.3.1 Strategy 1
2.3.2 Strategy 2
2.3.3 Strategy 4
2.3.4 Strategy 5
3 VBIAF
3.1 Introduction
3.2 Enhanced Governance Process
3.3 Impact-Based Risk Management
3.3.1 Impact-Based Risk Identification
3.3.2 Impact-Based Risk Measurement
3.3.3 Impact-Based Risk Management and Mitigation
3.3.4 Impact-Based Risk Monitoring and Reporting
4 Climate Change and Principle-Based Taxonomy (CCPT)
4.1 Introduction
4.2 GPs
4.2.1 GP1: Climate Change Mitigation
4.2.2 GP2: Climate Change Adaptation
4.2.3 GP3: No Significant Harm to the Environment
4.2.4 GP4: Remedial Measures to Transition
4.2.5 GP5: Prohibited Activities
4.3 Classification of Economic Activities
5 Summary and Recommendations
References
Part II: The Impact of Fintech and Investment Sustainability
The Impact of the Digital Economy Paradigm on Investment Sustainability in Oman
1 Introduction
2 Literature Review
3 Methodology
3.1 Main Econometric Model
4 Empirical Results
4.1 Descriptive Statistics
4.2 Correlation Matrix
4.3 Unit Root Test
4.4 Diagnostic Tests
4.5 Long-Run ARDL Results
4.6 Short-Run ARDL Model: ECM Results
5 Discussion
6 Conclusion and Policy Implications
References
The Sandbox in Saudi Arabia: A Regulatory Approach and Applications
1 Introduction
2 Review of Literature
3 Objectives
4 Data and Research Methodology
5 The Sandbox Approach: A Brief Overview
5.1 What Is Financial Technology (FinTech)?
5.2 History
5.3 Bali FinTech Agenda
5.4 Global FinTech Index
5.5 FinTech Sandbox
5.6 Regulatory Sandbox
6 FinTech Sandbox in Saudi Arabia
6.1 Saudi Financial Sector
6.2 FinTechSaudi
6.3 The FinTech Strategy
6.4 Status of Saudi FinTech
6.5 Regulatory Sandbox Framework
6.6 Permitted FinTech Companies
6.7 Sandbox Case Studies
6.7.1 Buy Now, Pay Later
6.7.2 Digital Savings Associations
7 Conclusion and Recommendations
8 Research Limitations
References
Risk Factors in Cryptocurrency Investments and Feasible Solutions to Mitigate Them
1 Introduction
2 Objectives of the Study
3 Literature Review
4 Methodology
5 Analysis and Findings
5.1 Prolific Authors and Their Affiliated Institutions and Countries
5.2 Prominent Areas of Research
5.3 Prominent Author Content Analysis
5.4 Keyword Analysis
5.5 Co-citation Analysis
5.6 Thematic Analysis
5.6.1 Cluster 1: Cryptocurrency Technology
5.6.2 Cluster 2: Markets and Business Aspects of Cryptocurrency
5.6.3 Cluster 3: Security Concerns and Governance
6 Market Factors Affecting Cryptocurrencies
7 Discussion
8 Stablecoins
8.1 Classification of Stablecoins
8.2 Fiat or Asset-Backed Stablecoins
8.3 Crypto-Collateralized Stablecoins
8.4 Algorithmically Stabilized Stablecoins
8.5 The Functions of Stablecoins
8.6 The Challenges and Risks
9 Conclusion and Future Work
References
The Examination of Shariah Compliance of Equity Crowdfunding Companies in Indonesia
1 Introduction
2 Literature Review
2.1 Crowdfunding
2.2 Shariah Crowdfunding
2.3 Equity Crowdfunding
2.4 Small and Medium Enterprise
3 Methodology
3.1 Type of Research
3.2 Data Source
3.3 Data Analysis Technique
4 Result and Discussion
4.1 Equity Crowdfunding Operation in Indonesia
4.2 Qualitative Analysis
4.3 Quantitative Analysis
4.4 Opportunities and Challenges Analysis in Implementing Shariah Compliance Model of Equity Crowdfunding in Indonesia
4.5 The Threats in Implementing the Shariah Compliance Model in Equity Crowdfunding in Indonesia
5 Conclusion
References
Fintech and Banking: An Indian Perspective
1 Introduction
1.1 Introduction to Fintech
1.2 Fintech in India
2 Research Methodology
3 Fintech-Enabled Services in India
4 Opportunities Posed by Fintech to Indian Banking Sector
5 Challenges Posed by Fintech to Indian Banking Sector
6 Discussion
7 Managerial Implication
8 Limitation and Future Research
9 Conclusion
References
Green Finance and Fintech: Toward a More Sustainable Financial System
1 Introduction
2 Importance of Green Finance
2.1 Challenges
2.2 Opportunities
3 Role of Fintech in Promoting Green Finance
4 Common Tools for Green Finance
4.1 Green Insurance
4.2 Green Loans
4.3 Green Bonds
4.4 The Relationship Between Green Loans and Green Bonds
4.5 Phases of Policy Creation
5 Policies for Green Banking Resources
6 Environmental, Social, and Governance (ESG) Investing
7 Green Taxonomy
8 Sustainable Financial System
9 Sustainability Bonds
10 Sustainability-Linked Bonds
11 Green Way to Sustainable Financing
12 Green Finance and Sustainable Development
13 Government´s Role in Promoting Green Finance
14 Greenwashing
14.1 How Does Financial Greenwashing Happen?
14.2 Examples of Greenwashing in the Banking Industry
15 Conclusion
References
