Evaluating the Impact of Blockchain Technologies and Decentralized Finance on Risk Management and Regulatory Compliance in Modern Banking Institutions
Keywords:
Blockchain, DeFi, Risk Management, Regulatory Compliance, Banking, Financial Innovation, Smart ContractsAbstract
Blockchain technologies and decentralized finance (DeFi) are reshaping the financial industry by introducing innovative methods for risk management and regulatory compliance. This paper investigates how these disruptive technologies influence the traditional banking sector's regulatory landscape, operational risks, and compliance frameworks. Using data-driven evaluation, it presents findings from 2022, reflecting the transitional challenges and opportunities banking institutions face. Results show that while blockchain improves transparency and reduces counterparty risks, DeFi also introduces new types of systemic risks requiring innovative regulatory solutions.
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Copyright (c) 2025 Yasmin Doha Iman (Author)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
