Innovative Trends of International Banking Business (case of Azerbaijan)

Fahri F. Murshudli – Ph.D. in Economics, doctoral student of the Chair for «Finance and Financial Institutions», Azerbaijan State University of Economics, Azerbaijan, AZ1001, Baku, Istiglaliyat Street, 6. E-mail: fahri_murshudli@yahoo.com.
 
Archive: 
Вся статья: 

DOI 10.24833/2071-8160-2018-1-58-186-212 (Read the article in PDF)

Development of the international banking business, the formation of its new paradigm in the context of globalization of the financial system and the intensification of global economic relations in recent years requires the innovative component. The combination of innovations, financial and external economic environment is one of the most important factors that characterize the phenomenon of the “new economy”. Therefore, innovative processes should be considered in conjunction with the changes of the processes connected with the foreign trade banking. The article gives a brief overview of the scientific literature on the international banking business and its innovative trends. Prerequisites are disclosed, direction and purpose of banking innovations, the area of their implementation and multi-vector forms of manifestation, reveals problems of innovative development of the international banking business, identifies potential paths of their solutions. The necessity of implementation of the innovative methods and instruments of bank service of foreign economic activity is justified and measures for their introduction in this process are offered. A wide spectrum of innovative trends of international banking business is defined as internal competitive environment, and external vectors. The author draws the attention to the contribution of the improvement of the sustainability and competitiveness of the business in terms of volatility of market processes. In the article on the example of the Republic of Azerbaijan presents practical recommendations on the development of innovative technologies in the banking system, the implementation of main tasks in this area, which are aimed to the development of effective management decisions on innovative international banking business in the foreseeable short and medium term.

Key words: international banking business, financial globalization, innovative trends, bank innovation, banking services of foreign economic activities.

References
1. Abalkina A.A. Jekspansija rossijskih bankov za rubezh: jempiricheskij analiz. Moskva: IJe RAN, 2016. 30 s.
2. Batrimenko V.V. Ekspansіja transnacіonal’nih bankіv u novih rinkovih ekonomіkah: Monografіja. Kiїv: VPC «Kiїvs’kij unіversitet», 2011. 570 s.
3. Vernikov A.V. Inostrannye banki v perehodnoj jekonomike: sravnitel’nyj analiz. Moskva: IMJePI RAN, 2005. 304 s.
4. Derig H.-U. Universal’nyj bank – bank budushhego. Finansovye strategii na rubezhe veka: Per. s nem. Moskva: Mezhdunarodnye otnoshenija, 1999. 384 s.
5. Dolgova A.Ju. «Mezhdunarodnyj finansovyj centr» i «global’nyj gorod»: vzaimosvjaz’ ponjatij // Vestnik MGIMO. 2017. № 1 (52). S. 162-172.
6. Efimova L.I. Nekotorye modeli gosudarstvenno- chastnyh partnerstv: tendencii i zarubezhnyj opyt. URL: http://www. eatc.ru/rus/doc.id_71.book_1.php (data obrashhenija: 26.08.2015).
7. Islamskie finansovye instituty v mirovoj finansovoj arhitekture / Pod red. K.V. Kochmola. Rostov-na-Donu: RGJeU «RINH», 2007. 368 s.
8. Islamskij rynok bankovskih uslug: sushhnost’, razvitie, opyt / N.P. Nikitenko i dr. Minsk: Belaruskaja navuka, 2009. 142 s.
9. Kievich A.V. Mezhdunarodnyj bankovskij biznes: funkcional’nyj i reguljativnyj aspekty: Monografija. Sankt-Peterburg: Izdatel’stvo Info-da, 2011. 133 s.
10. Loginov B.B. Mezhdunarodnyj bankovskij biznes. Moskva: Jurajt, 2016. 179 s.
11. Pavlov V.V. Islamskie banki v islamskom finansovom prave. Moskva: Ankil, 2003. 256 c.
12. Plotnikova E.B. Problemy institucionalizacii chastno-gosudarstvennogo partnerstva: zapadnyj opyt i rossijskie osobennosti // Vestnik Tomskogo gosudarstvennogo universiteta. Filosofija. Sociologija. Politologija. 2011. № 1 (13). C. 60-71.
13. Rozinskij I.A. Inostrannye banki i nacional’naja jekonomika. M.: Jekonomika, 2009. 384 s.
14. Rouz P. Bankovskij menedzhment. Predostavlenie bankovskih uslug / per. s angl. M.: Delo LTD, 1995. 768 s.
15. Sinki Dzh. Finansovyj menedzhment v kommercheskom banke i v industrii finansovyh uslug / per. s angl. M.: Al’pina Biznes Buks, 2007. 1018 s.
16. Strategicheskaja Dorozhnaja Karta po finansovym uslugam v Azerbajdzhanskoj Respublike. Utverzhdena Ukazom Prezidenta Azerbajdzhanskoj Respubliki ot 06.12.2016 goda. Baku, 2016. 59 s.
17. Sudas L.G., Bobyleva A.Z., L’vova O.A. Zarubezhnyj opyt proektnogo finansirovanija v sfere jenergetiki // Gosudarstvennoe upravlenie. Jelektronnyj vestnik, 2011, Vyp. 29. S. 97-116. URL: http://ejounal. spa.msu.ru/uploads/vestnik/2011/ vipusk_29._dekabr_2011_g./problemi_ upravle-nija_teorija_i_praktika/sudas_ bobyleva_lvova.pdf. (data obrashhenija: 26.04.2016).
18. Filippova L.E. Gosudarstvenno-chastnoe partnerstvo v mirovoj jekonomike: monografija. Minsk: Misanta, 2012. [Jelektronnyj resurs] 1 jelektron. opt. disk (CD-ROM).
19. Jarygina I.Z. Mezhdunarodnyj bankovskij biznes v uslovijah globalizacii: Monografija. LAP Lamber Academic Publishing, 2016. 256 s.
20. Addawe S.A. What are the impacts of the global financial crisis on Islamic banking system and how Islamic bank spared from the crisis? Helsinki: Aalto University - School of Economics. Winter 2012. 87 p.
21. Aliber R.Z. International Banking: Growth and Regulation // Columbia Journal of World Business, Winter 1975. 35 p.
22. Aliber R.Z. Towards a Theory of International Banking // Federal Reserve Bank of San Francisco Economic Review. 1976. Pp. 5-8.
23. Allen F., Beck T., Carletti E. Cross-border Banking in Europe: Implications for Financial Stability and Macroeconomic Policies. London: Centre for Economic Policy Research, 2011. 119 p.
24. Altmann T.C. Cross-border banking in Central and Eastern Europe. Issues and implications for supervisory and regulatory organization on the European level. University of Wharton, Working Paper 61, 2006. 134 p.
25. Anbuoli P., Thiruvenkatraj T.R. A Study on Customer Relationship Management in Banks // International Research Journal of Business and Management. 2013. Vol. VI. Pp. 1-10.
26. Ayadi R., Pujals G. Banking Mergers and Acquisitions in the EU: Overview, Assessment and Prospects. Vienna: SUERF, 2005. 96 p.
27. Baker J.C., Bradford M.G. American Banks Abroad: Edge Act Companies and Multinational Banking. New York: Praeger Publishers, 1974. xiv, 182 p.
28. Barthélémy J. Stratégies d’externalisation: Préparer, décider et mettre en oeuvre l’externalisation d’activités stratégiques. 3e ed. Paris: Dunod, 2007. 216 p.
29. Battilossi S. Financial Innovation and the Golden Ages of International Banking // Financial History Review. 2000. No. 7. Pp. 141-175.
30. Beckers T., Gehrt J., Klatt J.P. Evaluation of Private Financing Structures in Public- Private Partnerships // WIP Working Paper. No. 2010-04. Berlin: Berlin Institute of Technology, 2010. 22 p.
31. Bergami R. eUCP: A Revolution in International Trade? // The Vindobona Journal of International Trade Law and Arbitration. 2004. Vol. 8. No. 1. Pp. 23-36.
32. Blanc-Brude F., Strange R. Risk-Pricing and the Cost of Debt in Public-Private Partnerships: Evidence from the Syndicated Loan Market // Research Papers. No. 45. London: Department of Management. King’s College London, 2008. 35 p.
33. Boot A., Thakor A. Banking Scope and Financial Innovation // Review of Financial Studies. 1997. No. 10. Pp. 1099-1131.
34. Bouchet M.H., Islam A. Transnational Banks and The External Indebtedness of Developing Countries: Impact of Regulatory Changes. ST/CTC/SER.A/22. UN: New York, 1992. 48 p.
35. Brimmer A.F., Dahl F.R. Growth of American International Banking: Implications for Public Policy // Journal of Finance. 1975. No. 30(2). Pp. 341–63.
36. Calzolari G., Colliard J.-E., Loranth G. Multinational Banks and Supranational Supervision. CEPR Discussion Paper 11326, June 2016. 56 p.
37. Calzolari G., Loranth G. Regulation of Multinational Banks: A Theoretical In quiry. European Central Bank. Working paper series. No. 431, January 2005. 39 p.
38. Cardenas J., Graf J.P., O’Dogherty P. Foreign banks entry in emerging market economies: a host country perspective. CGFS Working Group on FDI in the financial sector, 2003. 29 p.
39. Chan-Lau J.A., Kelhoffer K., Zhang J. Long-Run Economic Growth: Does Project Finance Matter? Moody’s Analytics. July 2016. 22 p.
40. Claessens S., Demirgüç-Kunt A., Huizinga H. How Does Foreign Entry Affect the Domestic Banking Market? // Policy Research Working Papers. The World Bank, Development Research Group. May 1998. 30 p.
41. Clements S., Donelan M., Read C. CFO Insights: Achieving High Performance Through Finance Business Process Outsourcing. Chichester: John Wiley & Sons Ltd., 2004. 328 p.
42. Coulbeck N.S. The Multinational Banking Industry. London: Croom Helm, 1984. xvii, 384 p.
43. Cronican W.P. Buyer Beware: Electronic Letters of Credit and the Need for Default Rules // McGeorge Law Review. 2013. Vol. 45. Pp. 389-405.
44. Davidson A. Electronic Records in Letters of Credit. 2011. 15 p. URL: https:// www.uncitral.org/pdf/english/colloquia/ EC/UNCITRAL-paper_Feb2011- Alan-Davidson.pdf (data obrashhenija: 26.09.2017).
45. Derivatives in Islamic Finance: Examining the Role of Innovation in the Industry. Moody’s Global Credit Research. 04.04.2010. 18 r.
46. Dermine J. The Economics of Bank Mergers in the European Union, a Review of the Public Policy Issues. // INSEAD Working Paper 99/35. 1999. 52 p.
47. DiVanna J.A. Understanding Islamic Banking: The Value Proposition That Transcends Cultures. London: Leonardo and Francis Press Ltd., 2006. 192 p.
48. Drucker P.F. Innovation and entreprenership: Practice and principles. London: Pan Books, 1986. 277 r.
49. Edwards F.R. International Banking: An Overview // Columbia Journal of World Business, Winter 1975. 110 p.
50. Faia E., Ottaviano G.I.P., Sanchez I. International Expansion and Riskiness of Banks. CEPR Discussion Paper No. DP11951. Apr 2017. 68 p.
51. Felsenfeld C. International Banking Regulation. Huntington: Juris Publishing Inc., 2007. 430 p.
52. Finel-Honigman I., Sotelino F.B. International Banking for a New Century. London & New York: Routledge, 2015. Xi. 268 p.
53. Finnerty J.D. Project Financing: Asset- Based Financial Engineering. 2nd edition. Hoboken: John Wiley & Sons Inc., May 2007. 496 r.
54. Frame W.S., White L.J. Technological Change, Financial Innovation, and Diffusion in Banking. NYU Working Paper. No. 2451/33549. 16.01.2014. 37 p.
55. Frankel A.F. The Lender of Last Resort Facility in the Context of Multinational Banking // Columbia Journal of World Business, Winter 1975. 29 p.
56. Fung J.G., Bain E.A., Onto J.G., Harper I.R. A decade of internationalization: the experience of an Australian retail bank // Journal of International Financial Markets, Institutions and Money. 2002. Vol. 12. Pp. 399-417.
57. Gatti S. Project Finance in Theory and Practice: Designing, Structuring, and Financing Private and Public Projects. Burlington, MA: Academic Press/Elsevier, 2008. 440 p.
58. Gayathry S. Customer Relationship Management Model for Banks // Journal of Internet Banking and Commerce. 2016. Vol. 21. Iss. S5. 12 p.
59. Grubel H.G. A theory of multinational banking // Banca Nazionale del Lavoro Quarterly Review. 1977. Vol. 123. Pp. 349- 363.
60. Hermes N., Lensink R. The impact of foreign bank entry on domestic banking markets: A note. Research Report 01E62, University of Groningen, Research Institute SOM (Systems, Organisations and Management). 2001. 21 p.
61. Hoffman S.L. The Law and Business of International Project Finance: A Resource for Governments, Sponsors, Lenders, Lawyers, and Project Participants. 3rd ed. New York: Cambridge University Press, 22.10.2007. 524 r.
62. Hutton H.R. The Regulation of Foreign Banks – A European Viewpoint // Columbia Journal of World Business, Winter 1975. 189 p.
63. International Banking in the New Era: Post-crisis Challenges and Opportunities. Ed. by S.-J. Kim, M.D. McKenzie. Bingley: Emerald Group Publishing Limited, 2010. 485 p.
64. Johnston R.A. Proposals for Federal Control of Foreign Bank // Federal Reserve Bank of San Francisco Economic Review. 1976. Pp. 32-39.
65. Kleimeier S., Versteeg R. Project Finance as a Driver of Economic Growth in Low- Income Countries. Research Memoranda Oil, Maastricht: METEOR, Maastricht Research School of Economics of Technology and Organization. 13.02.2009. 45 p.
66. Klopstock F. Foreign Banks in the United States: Scope and Growth of Operations // Monthly Review of Federal Reserve Bank of New York. June 1973. Pp. 140-154.
67. Lees F.A. International Banking and Finance. London: Macmillan, 1974. 419 p. DOI: 10.1007/978-1-349-02148-2
68. McCauley R., McGuire P., Von Peter G. The architecture of global banking: from international to multinational? // BIS Quarterly Review. Basel, March 2010. Pp. 25-37.
69. Molyneux, Ph. Regulation and financial innovation trends in European banking and the impact on the supply and demand for financial services in Europe // ECB Working Paper. 2002. No. 03. 16 p.
70. Navaretti G.B., Calzolari G., Pozzolo A.F., Levi M. Multinational Banking in Europe: Financial Stability and Regulatory Implications: Lessons from the Financial Crisis. Centro Studi Luca d’Agliano Development Studies Working Paper. No. 292. 06.04.2011. 44 p.
71. Outsourcing in Financial Services. Basel Committee on Banking Supervision / Bank for International Settlements. February 2005. 22 p.
72. Perkins J.H. The Regulation of Foreign Banking in the United States // Columbia Journal of World Business, Winter 1975. 145 p.
73. Robinson S.W.Jr. Multinational Banking. Leiden: A.W. Sijthoff, 1972. 200 p.
74. Ruckdeschel F.B. Risk in Foreign and Domestic Lending Activities of U.S. Banks // Columbia Journal of World Business, Winter 1975. 68 p.
75. Schoenmaker D. Governance of International Banking: The Financial Trilemma. Oxford: Oxford University Press, April 2013. 128 p.
76. Welsh G.M. The Case for Federal Regulation of Foreign Bank Operations in the United States) // Columbia Journal of World Business, Winter 1975. 22 p.