Dutch Journal of Finance and Management

Dutch Journal of Finance and Management, 2024 - Volume 7 Issue 1, Article No: 26358
https://doi.org/10.55267/djfm/14239

Published Online: 20 Feb 2024

Views: 1343 | Downloads: 968

This research employs a qualitative technique to examine the complexities of settlement risk in Lebanese banks against the backdrop of the country's volatile economic environment. This study explores many dimensions of settlement risk, including operational, regulatory, and market elements, through comprehensive interviews with five key personnel spanning from risk analysts to senior executives in the banking sector. Given the context of economic uncertainty, political upheaval, and strict international regulations, the banking industry in Lebanon has largely focused on identifying the underlying factors contributing to settlement risk. The respondents provided insight into the management strategies used to mitigate these risks and the ongoing challenges encountered by the banking industry. The findings suggest that Lebanese banks encounter specific obstacles, including but not limited to technology deficiencies, varied regulatory frameworks, and geopolitical volatility. The presence of a complicated risk environment is evident, but it is also apparent that there are internal measures in place to mitigate settlement risks. This study presents empirical data that might be valuable for policymakers, financial analysts, and academic academics to gain a deeper understanding of the intricate characteristics of settlement risk in Lebanese banks. The need to implement a comprehensive and cohesive risk management plan to safeguard the Lebanese financial system is emphasized.

Banks Risk Management Diversification Mitigating Risks

• Abdullah, A., Hassan, R., & Kassim, S. (2020). A real asset management approach for Islamic investment in containerships. Journal of Islamic Accounting and Business Research, 11(1), 27–48. https://doi.org/10.1108/JIABR-07-2017-0105
• Aditya, B. R., Ferdiana, R., & Kusumawardani, S. S. (2021). Identifying and prioritizing barriers to digital transformation in higher education: a case study in Indonesia. International Journal of Innovation Science. https://doi.org/10.1108/IJIS-11-2020-0262/FULL/XML
• Bhojwani, D., & Shome, S. (2023). A Fundamental Framework for Identifying Profitable Cryptocurrencies. Journal of Structured Finance, 28(4), 41–58. https://doi.org/10.3905/jsf.2022.1.150
• Chow, Y.-T., Jiang, P.-C., Chang, C.-T., & Chang, C.-H.-T. (2023). Fabrication of low-dimensional superparamagnetic vanadium diselenide clusters for expanding magnetic storage capacity. Materials Science in Semiconductor Processing, 165. https://doi.org/10.1016/j.mssp.2023.107673
• Dao, B. T. T., & Ngo, H. A. (2020). Impact of corporate governance on firm performance and earnings management a study on vietnamese non-financial companies. Asian Economic and Financial Review, 10(5), 480–501. https://doi.org/10.18488/journal.aefr.2020.105.480.501
• Eldin, A., Hossny, E., Wassif, K., & Omara, F. A. (2023). Federated blockchain system (FBS) for the healthcare industry. Scientific Reports, 13(1). https://doi.org/10.1038/s41598-023-29813-4
• García-Sánchez, I. M., Oliveira, M. C., & Martínez-Ferrero, J. (2020). Female directors and gender issues reporting: The impact of stakeholder engagement at country level. Corporate Social Responsibility and Environmental Management, 27(1), 369–382. https://doi.org/10.1002/csr.1811
• Haapio, H., Mero, J., Karjaluoto, H., & Shaikh, A. A. (2021). Implications of the COVID-19 pandemic on market orientation in retail banking. Journal of Financial Services Marketing, 26(4), 205–214. https://doi.org/10.1057/s41264-021-00099-9
• Hamza, I., & Shatila, K. (2022). The Effect of Gamification on Employee Behavior: The Mediating Effects of Culture and Engagement. The Journal of Asian Finance, Economics and Business (JAFEB), 9(5), 213-224.
• Jalloul, S., Awwad, G., & Shatila, K. (2022). The Impact of Accounting Information Systems on Bank Performance: The Case of Lebanon. Management and Economics Review, 7(3), 405-422.
• Kamel, M. A., Bakhoum, E. S., & Marzouk, M. M. (2023). A framework for smart construction contracts using BIM and blockchain. Scientific Reports, 13(1). https://doi.org/10.1038/s41598-023-37353-0
• Kaur, S. J., Ali, L., Hassan, M. K., & Al-Emran, M. (2021). Adoption of digital banking channels in an emerging economy: exploring the role of in-branch efforts. Journal of Financial Services Marketing, 26(2), 107–121. https://doi.org/10.1057/S41264-020-00082-W/TABLES/3
• Kukacka, J., & Kristoufek, L. (2023). Fundamental and speculative components of the cryptocurrency pricing dynamics. Financial Innovation, 9(1). https://doi.org/10.1186/s40854-023-00465-7
• Kumar, V. R., Selvaraj, M., Venkateswaran, P. S., Sabarirajan, A., Shatila, K., & Agarwal, V. (2022). The impact of training and development programs on employees performance: the case of Lebanese SMEs. International Journal of Intellectual Property Management, 12(3), 368-381.
• Lin, X., Meng, Y., & Zhu, H. (2023). How connected is the crypto market risk to investor sentiment? Finance Research Letters, 56. https://doi.org/10.1016/j.frl.2023.104177
• Maiti, M., Vuković, D., Mukherjee, A., Paikarao, P. D., & Yadav, J. K. (2021). Advanced data integration in banking, financial, and insurance software in the age of COVID-19. Software - Practice and Experience. https://doi.org/10.1002/spe.3018
• Mtiraoui, A., Boubaker, H., & BelKacem, L. (2023). A hybrid approach for forecasting bitcoin series. Research in International Business and Finance, 66. https://doi.org/10.1016/j.ribaf.2023.102011
• Park, S., & Yang, J.-S. (2023). Intelligent cryptocurrency trading system using integrated AdaBoost-LSTM with market turbulence knowledge[Formula presented]. Applied Soft Computing, 145. https://doi.org/10.1016/j.asoc.2023.110568
• Pessa, A. A. B., Perc, M., & Ribeiro, H. V. (2023). Age and market capitalization drive large price variations of cryptocurrencies. Scientific Reports, 13(1). https://doi.org/10.1038/s41598-023-30431-3
• Ramaswamy, S., Khande, R., Patil, Y. S., & Kalkar, P. (2021). Adapting digital banking services during covid-19 pandemic: a study on customer experiences in selected district of maharashtra state, india. International journal of electrical engineering and technology, 12(5). https://doi.org/10.34218/ijeet.12.5.2021.002
• Shatila, K., & Alozian, M. (2019). Factors affecting employee turnover: the case of Lebanese retail companies. Journal of Human Resources, 7(2), 5-13.
• Siddik, M. N. A., Sun, G., Kabiraj, S., Shanmugan, J., & Yanjuan, C. (2016). Impacts of e-banking on performance of banks in a developing economy: empirical evidence from Bangladesh. Journal of Business Economics and Management, 17(6), 1066–1080. https://doi.org/10.3846/16111699.2015.1068219
• Śliwiński, P. (2021). International portfolio diversification during the Covid-19 onset: A study of correlations among CEE post-transition and developed countries. In Towards the "new normal" after COVID-19 – a post-transition economy perspective (pp. 75–89). Wydawnictwo Uniwersytetu Ekonomicznego w Poznaniu. https://doi.org/10.18559/978-83-8211-061-6/i6
• Sun, T., Feng, A., Wang, Y., & Chang, C. (2021). Global Financial Stability Notes Digital Banking Support to Small Businesses amid COVID-19: Evidence from China. https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19.
• Tiwari, S., Bharadwaj, S., & Joshi, S. (2021). A Study of Impact of Cloud Computing and Artificial Intelligence on Banking Services, Profitability and Operational Benefits. In Turkish Journal of Computer and Mathematics Education 1617 Research Article (Vol. 12, Issue 6).
• Ushakov, D., & Shatila, K. (2021). The impact of workplace culture on employee retention: An empirical study from Lebanon. The Journal of Asian Finance, Economics and Business (JAFEB), 8(12), 541-551.
• Ushakov, D., & Shatila, K. (2022). The Impact of Engagement on Turnover Intention: The Case of United Arab Emirates Banks. The EUrASEANs: journal on global socio-economic dynamics, (5 (36)), 94-105.
• Uppal, S., Kansekar, B., Mini, S., & Tosh, D. (2023). HealthDote: A blockchain-based model for continuous health monitoring using interplanetary file system. Healthcare Analytics, 3. https://doi.org/10.1016/j.health.2023.100175
• Wijayanti, R. P., Salma, U., Azizah, A., Daulay, Y., & Nugroho, A. W. (2021). Ijeba the effect of digital banking innovation on the perfromance of conventional commercial banks in indonesia (Vol. 2, Issue 2). http://ijeba.makarioz.org/
• Yang, W., Liu, J., Li, L., Zhou, Q., & Ji, L. (2021). How Could Policies Facilitate Digital Transformation of Innovation Ecosystem: A Multiagent Model. Complexity, 2021. https://doi.org/10.1155/2021/8835067
• Yilmaz, C., & Buyuklu, A. H. (2016). Impacts of Corporate Governance on Firm Performance: Turkey Case with a Panel Data Analysis. Eurasian Journal of Economics and Finance, 4(1), 56–72. https://doi.org/10.15604/ejef.2016.04.01.004
• Yudaruddin, R. (2023). Financial technology and performance in Islamic and conventional banks. Journal of Islamic Accounting and Business Research, 14(1), 100–116. https://doi.org/10.1108/JIABR-03-2022-0070
• Zhang, Z., & Zhao, R. (2023). Good volatility, bad volatility, and the cross section of cryptocurrency returns. International Review of Financial Analysis, 89. https://doi.org/10.1016/j.irfa.2023.102712

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.