Background: As a complex socio-economic concept, financial inclusion is related to the improvement of access and use of formal financial products and services (such as bank deposits, loans, insurance, etc.) by all participants in the financial system. More inclusive financial systems contribute to poverty reduction, decrease in inequalities among different income groups leading to economic growth, and economies more resilient towards macroeconomic shocks. Purpose: This paper aims to assess the relationship between financial inclusion and inflation in Southeast European countries, focusing on Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Greece, Montenegro, North Macedonia, Romania, Slovenia, Serbia, and Turkey in the period from 2011 to 2021. Study design/methodology/approach: The financial inclusion index was constructed using Principal Component Analysis (PCA). The connection between the financial inclusion index and inflation was investigated using panel regression modeling (OLS, fixed-effect, and random-effect models). Findings/Conclusions: The research showed that countries with higher levels of financial inclusion are more resilient to inflation. This finding is consistent with other research implying that policymakers and other stakeholders within a financial system should contribute to promoting financial inclusion and building more inclusive financial systems. Limitations/future research: The main limitation of the research is related to data availability for multidimensional index construction. Future research should be directed to providing a better understanding of whether the relationship between financial inclusion and inflation is under the influence of other monetary policy instruments, such as interest rates.

Purpose Explaining the sources of the differences in social performance among Islamic banks (IBs) is the motivation for this research. Consequently, the purpose of this paper is to investigate the relationship between the development of Islamic finance regulation, the development of an Islamic financial system, the proportions of affected Muslim populations and the level of competition, on the one hand, and the social performance of IBs, on the other. To the best of the authors' knowledge, this is the first study that investigates the impact of the development of regulation and the Islamic financial system on the social performance of IBs. Design/methodology/approach A balanced panel of annual data for 40 banks from 13 countries is applied, spanning 2012–2018. A social performance index with eight dimensions is constructed and measures the social performance of IBs. The index based on qualitative and quantitative data derives from IBs’ annual reports and financial statements. The linear scaling transformation method articulates the quantitative dimensions of the index. In hypotheses testing, the authors use OLS, LSDV, FEM and Random Effect Model to estimate Model (1) and panel-corrected standard errors with Prais–Winsten transformation to estimate Model (2). Findings This unique research confirms the positive impact of the development of Islamic finance regulation on the social performance of IBs. The results show that the development of Islamic finance regulation is consistently significant on all standard significance levels. IBs’ age and the presence of Muslim populations in the country are also significant in most estimators. Research limitations/implications The results of this research highlight a significant value for regulators, shareholders and the management of IBs. Without proper regulation, these banks can hardly operate under the principles and expectations of the Islamic moral economy. Originality/value This is pioneering research that explores the development of Islamic finance regulation and market concentration as a determinant of social performance of IBs. Development of Islamic finance regulation has proved significant in all estimated models, which confirms that a new variable has been discovered among determinants of the social performance of IBs.

Purpose This study aims to investigate the relationship between Islamic governance and the social performance of Islamic banks, pioneering a new aspect in terms of the impact of the National Shariah Board (NSB) on the social performance of Islamic banks. The essential body in the Islamic banks in charge of Islamic governance is the Shariah Supervisory Board (SSB). Therefore, in this study, the authors explore how the characteristics of the Shariah board and Islamic governance mechanisms influence the social performance of Islamic banks. Design/methodology/approach Panel data methods are applied to the annual data of 43 banks from 14 countries over the period 2012–2018 to explore the impact of Islamic governance on Islamic banks’ social performance. The authors have used all available bank annual reports in the given period. Social performance is measured by Maqasid al-Shariah (in terms of the goals of the Islamic moral economy) index using a comprehensive evaluation framework. Islamic governance is represented by the improved Islamic Governance Score (IG-Score) index, which measures the quality of Islamic governance in Islamic banks. In the research, the authors also introduce the frequency of SSB meetings in IG-Score. Findings The findings suggest a strong link between Islamic governance and the social performance of Islamic banks, illustrating the importance of the Shariah board in achieving maqasid. On the other hand, the research discovered that NSBs are inefficient and the existence of NSB can jeopardize the social performance of Islamic banks. The results of this research imply valuable recommendations for Islamic banks that are keen to improve their social performance. Originality/value Besides investigating the impact of SSB governance on the social performance of Islamic banks by using an improved IG score index, to the best of the authors’ knowledge, this is the first study that investigates the impact of NSBs on the social performance of Islamic banks.

This paper analyzes the linear and non-linear relationship between non-performing loans and bank profitability measured by the Net Interest Margin for a sample of 74 Middle Eastern and North African banks over the period of 2005–2020. We used the System Generalized Method of Moments (SGMM) as a linear approach and the Panel Smooth Transition Regression (PSTR) model as a non-linear approach. The empirical results of the SGMM approach indicated that the ratio of NPLs negatively affects bank profitability. The findings of the non-linear relationship based on the PSTR model confirmed the existence of a threshold effect. We found that below the threshold of 4.42%, the effect of NPLs is negative but not significant, while after surpassing this threshold, the effect becomes negative and significant. As for bank specifics, we revealed that bank size is positively and significantly associated with bank profitability. For industry factors, we found that more bank concentration decreases bank profitability. Regarding the financial environment, we concluded that the global financial crisis exerted a negative impact on bank profitability. Moreover, we revealed a positive and significant impact of GDP on bank profitability as well as a negative impact of inflation on bank profitability. This study has some limitations regarding the social, economic, and financial differences of the whole sample, which includes banks from the Middle East and others from North Africa. Hence, decomposing the whole sample into two sub-samples could improve the results of this paper.

The main purpose of this paper is to present a systematic literature review of studies on the determinants of non-performing loans (NPLs) published over the period 1987–2022. This paper reviewed 76 studies in 58 peer-reviewed journals. The provocation for this analysis is that the issue of NPLs is attributed to close attention from policymakers and is currently addressed with various measures. The authors synthesize the literature according to the following main boards: macroeconomic factors, bank-specific factors, and industry factors. This study tries to construct the main findings from the numerous studies that are performed concerning NPLs and their determinants. The authors’ motivation is to provide a detailed perspective on NPLs. Hence, this study provides a complete and coherent framework for the researchers to examine the varied NPL literature.

The purpose of this work is to show the development and evaluation of behavioural intentions of students by using mobile banking. The research goal is to explain determinants of students’ intentions towards the use of mobile banking. PLS SEM (partial least squares structural equation modeling) analysis was used for the model evaluation. The sample consists of 83 students from four higher education institutions operating in Bosnia and Herzegovina (B&H). Research results confirmed that subjective norm and attitude are significant predictors of the user’s attitude towards mobile banking acceptance, while the influence of self-efficacy was not determined. Attitudes related to mobile banking acceptance are primarily determined by perception of usefulness and self-efficacy, and to a lower degree by perception of privacy and security risk. Perception of mobile banking usefulness appeared to be the most significant predictor of attitudes, while simultaneously it influenced positively on acceptance of behavioral intention, including intervening effect of attitude variable. Digital literacy was proved to be a significant predictor for self-efficacy. From the perspective of banks, it is very important to see how a generation that a high potential for the use of modern technologies has perceives mobile banking, and what affects it to accept mobile banking. The results of this research are useful for banks to attract new younger users of mobile banking and increase their own benefits.

Abstract The main objective of this paper is to investigate determinants of non-performing loans in the Middle East and North Africa region by exploring the role of bank-specific and macroeconomic factors, particularly in the period of the global financial crisis, as well as the COVID-19 pandemic, as a health crisis that translates to an economic crisis. This study includes 74 banks belonging to 11 MENA countries over the period 2005–2020 and uses the two-stage system generalized method of moment estimator. To conduct a comparative analysis, the whole sample is divided into two sub-samples. The first one is related to the Middle East countries and the second one covers North African countries. The empirical findings indicate that the level of non-performing loans is more sensitive to bank specifics than macroeconomic factors. When it comes to macroeconomic factors, macroeconomic environment and institutional quality significantly affect the level of NPLs. However, no significant effect has been detected regarding the impact of the COVID-19 pandemic.

Under contemporary business conditions, there are numerous models used for the assessment of a company's financial situation and the prediction of the likelihood of its bankruptcy. These models have been mainly developed using the company's financial information. One of them is the Altman Z-score model. The model separates financially successful and stable companies from those having difficulties in business and headed for bankruptcy. This paper explains the importance of prudential information, basic financial statements and financial indicators and presents the research aimed at evaluating the applicability of the revised Altman Z'-score model in the Federation of Bosnia and Herzegovina (FBiH). Based on financial information, the paper analyzes the business activities of 50 large manufacturing companies in FBiH. The revised Z'-score model achieved a relatively good result in assessing the companies with business difficulties as it correctly classified 10 out of 20 companies; the other 10 companies were not incorrectly classified into the companies with the stable business but they were placed in the grey zone. The model proved completely reliable in the classification of all 30 companies with stable businesses. The research results indicate that the revised Altman Z'-score may be used as the predictor of the financial failure of manufacturing companies in FBiH. This model is definitely the tool that may assist while making business decisions. However, due to the specific business environment in FBiH, the model is recommended to be used as an additional rather than the basic indicator for predicting financial failure.

This study analyzes the social performance of 40 Islamic banks from 13 countries over the period 2012-2018, aiming to investigate to what extent Islamic banks around the world meet the social goals of the Islamic moral economy. As key financial institutions that operate within the framework of the Islamic moral economy, Islamic banks are expected to play and emphasize their socio-economic role in society by improving their economic, social, ethical, and environmental performance. Therefore, social performance in this paper was measured via a comprehensive evaluation framework using a maqasid index based on disclosure analysis. The main findings suggested that Islamic banks achieved 35% of the maximum index value, which indicated a room for improving their social performance. There was an encouraging fact that social performance over the observed period grew on a yearly basis. The average growth rate of social performance per year was 3.58%, which did not guarantee significant changes in a short time, but it was evident that banks made some progress in this regard over the observed period. Moreover, the highest score of Islamic banks' social performance was recorded in the category I3 (“Self”) of the social performance index, which was based on the level of investment in the real sector, particularly small and mediumsized enterprises (SMEs). On the contrary, the lowest rating was registered in the category I5 (“Posterity”). An alarming fact was that Islamic banks demonstrated deficient environmental awareness and achieved low performance in this index component. Further, banks from Indonesia achieved the highest social performance. Also, to provide an easier understanding of the social performance of Islamic banks compared to the expectations of the Islamic moral economy, banks were categorized into specific categories according to a rating system similar to the CAMELS approach in conventional banking, but based on the Islamic moral economy social performance framework.

 merima.ibisevic@untz.ba ABSTRACT: Origanum compactum (Lamiaceae) is an endemic species of oregano from Morocco, and the main components are carvacol and thymol, which are considered to have antimicrobial activity. Essential oils can be unstable, poorly soluble in water and poorly delivered to target cells. The incorporation of essential oils into liposomes can reduce their irritant effect, while at the same time prolonging the action of the preparation itself as well as increasing its effectiveness. The aim of our study was to investigate antimicrobial activity of liposomal and non-liposomal vaginal suppositories, and see if there are any differences in antimicrobial activity. Examination of the antimicrobial activity of vaginal suppositories was examined in the same way as the antimicrobial activity of the essential oil, by the disk diffusion method. There were used standard bacterial strains from ATCC collection: Staphylococcus aureus ( S. aureus ) ATCC 25923, Enterococcus faecalis ( E. faecalis ) ATCC 51299, Escherichia coli ( E. coli ) ATCC 25922, Candida albicans ( C. albicans ) ATCC 10231. Liposomal vaginal suppositories had a smaller inhibition zones probably due to the slower release of active components, but still have an advantage over non-liposomal vaginal suppositories because they reduce the irritating potential of the