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Compliance as Business Development Potential in the Credit Institution Sector

Author

Listed:
  • Andrea Pelei

    (Budapest University of Technology and Economics)

  • Ferenc Bognar

    (Budapest University of Technology and Economics)

  • Petra Benedek

    (Budapest University of Technology and Economics)

Abstract

Regulatory compliance, often perceived as a burden by organisations, offers untapped opportunities for business development. By adopting, implementing and improving relevant standards and good practices, companies can increase stakeholder confidence, improve organisational reputation and reduce the legal, financial, business and reputational risks arising from various non-compliances. Drawing on literature research, the paper shows that compliance with regulations typically fosters an internal organisational environment and culture where innovation, excellence and sustainable growth can be created. Complex compliance management activities can help identify market opportunities, stimulate product development and improve customer experience. Compliance and innovation are compatible approaches that support long-term success.

Suggested Citation

  • Andrea Pelei & Ferenc Bognar & Petra Benedek, 2024. "Compliance as Business Development Potential in the Credit Institution Sector," Financial and Economic Review, Magyar Nemzeti Bank (Central Bank of Hungary), vol. 23(3), pages 171-192.
    • Handle: RePEc:mnb:finrev:v:23:y:2024:i:3:p:171-192
    as

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    File URL: https://en-hitelintezetiszemle.mnb.hu/letoltes/fer-23-3-e1-pelei-bognar-benedek.pdf
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    References listed on IDEAS

    as
    1. Ferenc Bognár & Balázs Szentes & Petra Benedek & Siew Ann Cheong, 2023. "Compliance Risk Assessment in the Banking Sector: Application of a Novel Pairwise Comparison-Based PRISM Method," Complexity, Hindawi, vol. 2023, pages 1-13, May.
    2. van den Broek, Tijs & van Veenstra, Anne Fleur, 2018. "Governance of big data collaborations: How to balance regulatory compliance and disruptive innovation," Technological Forecasting and Social Change, Elsevier, vol. 129(C), pages 330-338.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    compliance management; risk management; innovation; business development; credit institutions;
    All these keywords.

    JEL classification:

    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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