International Journal of Public Sector Performance Management Call for Papers

Special Issue on “Financial Innovations, Financial Regulations and Structural Changes in Financial Sector” Guest Editors: Dr. Babli Dhiman, Lovely Professional University, India Dr. Sukhpreet Kaur, Lovely Professional University, India Dr. Hari Babu Singu, Lovely Professional University, India Dr. Pawan Kumar, Lovely Professional University, India Since decades financial institutions operated in a relatively stable environment. However, the dynamic changes in the global markets pushed the financial industry in to a deregulated and an aggressive competitive environment. This resulted in to paradigm shift in the global financial industry’s landscape from traditional model financial institutions to dominant non-traditional financial institutions’(Mosad & Valentina,2015). Innovation is a differentiating factor for the companies to manage the rudiments of competition (Mosad & Valentina 2015; White 2000). Financial innovations in the financial services industry brings broad range of businesses, while the distinctions that are not clearly differentiated, in terms of number and value (Arthur 2017; Qamruzzaman & Jianguo 2017). However, financial innovations enables the economic growth

through promoting financial inclusion, facilitating international trade and enabling the financial efficiency in financial system (Qamruzzaman & Jianguo 2017). Financial innovations can also be viewed as financial improvements, such as the new financial reporting procedures and improvements in data processing and credit scoring that enhanced the ability of banks to evaluate borrowers (Laeven et al. 2015). While the innovations in financial systems are advantageous for financial sector development, the phenomenon is not an exception from the perils (Arthur 2017; Qamruzzaman & Jianguo 2017). One cannot ignore the recent past economic history that had witnessed the out-break of sub-prime mortgage crisis through the prudent use of innovative derivative transactions called credit default swaps. The long term ramifications of the innovations in financial systems should be seen from the perspective of all stake holders(Henderson & Pearson 2011; Turan 2015). For instance, traditional financial intermediaries lost a major chunks of market share to virtual intermediaries, which are working in less regulated less secure environments(Turan 2015). In fact, the regulatory and supervisory institutions are unable to keep abreast of the rapidly changing financial system dynamics. Therefore, it is argued for strong regulations and sound institutional framework to stabilize the instability in market and reduce moral hazards due to asymmetric information in financial markets ((Bishnoi & Devi 2017; Kim et al. 2013). However, more restrictions on banks cause rigidity to diversify towards other financial activities to reduce risk (Barth et al. 2004; Barth & Wihlborg 2017).

Today, the financial services industry as well as business corporations are at the cross roads of innovation where big data, digital disruption and technology have changed the way the products are delivered and how the processes function(Orakwue 2017). Technology and financial innovation are positively correlated and eventually, economic growth activates when financiers innovate (Laeven et al. 2015). To reach and adapt rapid changing technological innovations, corporations need adequate credit facilities in match with the requirements of the volatile environment (Ang 2014). Such a scenario raises concern to create Schumpeterian Model of Entrepreneurs who can be called as Financial Entrepreneurs(Haritchabalet et al. 2017; Laeven et al. 2015). As a cursory, financial reforms intend to remove the structural and regulatory constraints and stimulate innovative production in the global economic system (Laeven et al. 2015). Towards this direction, the discussions among the researchers and policy makers need to

address what innovation financing policies should be implemented to further strengthen the financial eco-system and to what extent these innovation financing policies result in successful innovation outcomes (Wonglimpiyarat 2011).

The purpose of this special issue is to address the issues and concerns, opportunities and challenges for financial innovations in financial system. Furthermore, the special issue also invites the researchers, corporate and policy makers to deliberate what regulatory and structural changes are needed for innovative financing system for sustainable economic growth.

Subject Coverage Suitable topics include, but are not limited, to the following: 

Technological innovations in Financial Services

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Innovative Financial Services for the Bottom-of-pyramid

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Innovations in Finance towards sustainability

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Dynamics of Alternate Investment Avenues

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Innovations in Wealth Management Practices

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Dimensions of Corporate Restructuring

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Technological Innovations in Banking

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Innovations in Banking Sector

Notes for Prospective Authors Submitted papers should not have been previously published nor be currently under consideration for publication elsewhere. (N.B. Conference papers may only be submitted if the paper has been completely re-written and if appropriate written permissions have been obtained from any copyright holders of the original paper). All papers are refereed through a peer review process. All papers must be submitted online. To submit a paper, please read our Submitting articles page. If you have any queries concerning this special issue, please email the Guest Editors Dr. Rajesh Verma at [email protected], Dr.Babli Dhiman at [email protected] and Dr. Hari Babu Singu at [email protected].

Important Dates Manuscripts due by: January 5, 2018 References Ang, J. B. (2014). Innovation and financial liberalization. Journal of Banking & Finance, 47, 214–229. Arthur, K. N. A. (2017). Financial innovation and its governance: Cases of two major innovations in the financial sector. Financial Innovation, 3(1), 10. Barth, J. R., Caprio, G., & Levine, R. (2004). Bank regulation and supervision: what works best? Journal of Financial Intermediation, 13(2), 205–248. Barth, J. R., & Wihlborg, C. (2017). Too big to fail: Measures, remedies, and consequences for efficiency and stability*. Financial Markets, Institutions & Instruments, 26(4), 175–245. Bishnoi, T. R., & Devi, S. (2017). Banking Reforms. In Banking Reforms in India, Palgrave Macmillan, Cham, pp. 31–58. Haritchabalet, C., Lepetit, L., Spinassou, K., & Strobel, F. (2017). Bank capital regulation: Are local or central regulators better? Journal of International Financial Markets, Institutions and Money, 49(Supplement C), 103–114. Henderson, B. J., & Pearson, N. D. (2011). The dark side of financial innovation: A case study of the pricing of a retail financial product. Journal of Financial Economics, 100(2), 227– 247. Kim, T., Koo, B., & Park, M. (2013). Role of financial regulation and innovation in the financial crisis. Journal of Financial Stability, 9(4), 662–672. Laeven, L., Levine, R., & Michalopoulos, S. (2015). Financial innovation and endogenous growth. Journal of Financial Intermediation, 24(1), 1–24. Mosad, Z., & Valentina, V. (2015). Banking and Financial Sector in the Cloud: Knowledge, Quality and Innovation Management | SpringerLink. In Cloud Systems in Supply Chains, Palgrave Macmillan,London, pp. 178–194.

Orakwue, E. (2017). Innovation, Big Data & Technology in Financial Services (SSRN Scholarly Paper No. ID 2939426), Rochester, NY: Social Science Research Network. Retrieved from https://papers.ssrn.com/abstract=2939426 Qamruzzaman, M., & Jianguo, W. (2017). Financial innovation and economic growth in Bangladesh. Financial Innovation, 3(1), 19. Turan, S. S. (2015). Financial Innovation - Crowdfunding: Friend or Foe? Procedia - Social and Behavioral Sciences, 195(Supplement C), 353–362. White, L. J. (2000). Technological change, financial innovation, and financial regulation in the US: The challenges for public policy. Performance of Financial Institutions: Efficiency, Innovation, Regulation, 388–415. Wonglimpiyarat, J. (2011). The dynamics of financial innovation system. The Journal of High Technology Management Research, 22(1), 36–46.