Determinants of Having International Standard Certificate (Case of Kazakhstan, Russian and Ukrainian Banks)

Abstract

Payment Card Industry Data Security Standard is an international set of recommendations regarding information security of banks and internet stores. Banks need to comply with the standard in order to cooperate with leading payment systems of the world. The study attempts to investigate determining factors affecting the probability of receiving the certificate of compliance with the standard in banks of Russia, Kazakhstan and Ukraine in order to predict how banks can achieve the certification. This is conducted using a sample of 19 Russian banks, 10 Kazakhstan banks and 14 Ukrainian banks during 2000-2017. The data were processed using binary response model. The main result is a significant positive impact of the bank’s total revenue, leverage and authorized stock capital on the likelihood of having the certificate of compliance with Payment Card Industry Data Security Standard. From this, it can be concluded that banks need to have a level of income and own funds sufficient to cover all expenses related to the protection of payment card data in order to obtain the certificate.