Determinants of Financial Reporting Quality in the Banking Sector

This study aims to identify and analyze the various factors influencing the quality of financial reporting in the banking sector. The research is motivated by the critical role of reliable financial reports in enhancing transparency, accountability, and the stability of the financial system. Employing a Systematic Literature Review (SLR) approach, this study synthesizes evidence from 45 empirical articles published between 2006 and 2024 in nationally and internationally reputable journals. The analysis reveals that the quality of financial reporting is significantly influenced by corporate governance structures, the effectiveness of internal control and internal audit functions, the level of IFRS and information technology adoption, bank performance and financial stability, transparency and non-financial disclosures, earnings management practices, auditor independence, as well as external contextual factors such as regulations and macroeconomic conditions. The findings suggest that the assessment of financial reporting quality requires a multidimensional and interdisciplinary approach. This study offers practical implications for regulators, bank management, and academics in designing more effective policies to enhance the quality of financial reporting and governance in the banking sector.