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Relationship Between Banking and Accounting

The article Blockchain Applications in Accounting and Finance written by Kemyani et al. begins by explaining the concept of blockchain applications in accounting and finance. Kemyani et al. investigate the state of affairs in this field and the factors causing these applications to obtain new heights. Blockchain technology can revolutionize the financial sector by enhancing information sharing and speeding up transaction settlements. The main objective is to identify current blockchain advances for significant accounting and finance activities in the banking sector.

Kemyani et al. conducted qualitative research into the banking sector’s use of blockchain technology. Empirical Evidence was gathered through interviews and relevant literature. A study on the impact of blockchain technology on financial services and information systems is done. A three-phase approach is used to reach their study aims: the first phase involves collecting information, phase two consists of analyzing and interpreting the collected data, and the third phase involves presenting the results. The approach seeks to identify the challenges and opportunities associated with implementing this technology in the banking, auditing and finance sectors.

According to Kemyani et al., 2022 there are three features of blockchain technology: faster settlement, decentralized and better security. Blockchain can improve financial service delivery by providing high-level data integrity with immediate payment to reduce credit risk while enabling members to make real-time transactions at a lower cost. Finally, the study identifies that there is a need in Oman’s banking sector for an enhanced accounting framework, which will lead to better operational effectiveness and efficiency. The findings of the study help scholars, bankers, and regulators understand blockchain applications in accounting and finance.

The article A dynamic network DEA model for accounting and financial indicators written by Wanke et al., develops and evaluates a busy accounting and economic indicators model for MENA countries, which is a part of an effort to develop International Financial Reporting Standards (IFRS) to encourage local financial reporting. The objective of the article is not only to develop IFRS but also to explore the accounting and financial system issues to improve their efficiency in maintaining accuracy and relevance while increasing understanding of these systems.

, According to Wanke et al. (2019), using a dynamic network creates a relational model. The importance of an active network DEA model where any key indicator could be narrowed down in relation to accounting and financial indicators is to provide more insight into the operation of the business. Accounting information provides no understanding of why certain companies are successful while others fail. This leads us to try new ideas and concepts and test them out to increase profits.

In general, a new Dynamic Event-Driven Evolutionary (DEA) model is used to explain accounting and financial indicators fluctuations. The model can account for the shift in risk aversion due to changes in investors’ preferences and their beliefs about investment opportunities (Wanke et al., 2019). This can potentially improve the efficiency of banks, which are commonly less efficient under accounting competition because they are forced to report revenue and cost forecasts at the end of each quarter.

The Financial article accounting in the banking industry written by Beatty & Liao surveys the current literature on bank accounting by exploring how banks use financial statements to enhance their reputation, how they support risk management, and what factors influence the timing of reporting. The first part adapts framework such as bankers׳ reputation and external views to predict whether a bank will strengthen its capital or liquidity position by strong reported performance in future periods. The second part uses these ideas to test whether banks that make rapid changes in their reported results tend to be more liquid than those with more minor changes over long periods. The third part presents an empirical analysis of these hypotheses using a panel data set from 1450 banks operating in 31 countries.

Beatty & Liao (2014) summarize the main findings of studies in the empirical literature that try to determine if bank financial reporting is responsible for changes in the valuation, regulatory capital and earnings management of banks. They found that a stronger relationship exists between banks’ valuation and risk assessments and financial statements discretion, which help explain how bank earnings are managed in different market conditions. Finally, they provide recommendations for improving finance sector accounting standards, investment strategies, technology generation, and regulation.

The literature review presented the article ‘Financial accounting in the banking industry looked at the research on the effectiveness of capital requirements, specific management concepts and accounting practices, regulatory capital system and their interaction with financial performance. The role of management accounting is essential to understanding the effect of capital regulation on financial performance(Beatty & Liao, 2014). Finally, the findings suggest caution against the use of accounting regulations as a predictive tool for regulatory decision-making.


Al Kemyani, M. K., Al Raisi, J., Al Kindi, A. R. T., Al Mughairi, I. Y., & Tiwari, C. K. (2022). Blockchain applications in accounting and finance: qualitative Evidence from the banking sector. Journal of Research in Business and Management10(4), 28-39.

Beatty, A., & Liao, S. (2014). Financial accounting in the banking industry: A review of the empirical literature. Journal of Accounting and Economics58(2-3), pp. 339–383.

Wanke, P., Azad, M. A. K., Emrouznejad, A., & Antunes, J. (2019). A dynamic network DEA model for accounting and financial indicators: A case of efficiency in MENA banking. International Review of Economics & Finance61, 52-68.


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