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Journal articles on the topic 'Credit analysis'
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Lestari, Rhisca Meci, Ratu Eva Febriani, and Novi Tri Putri. "Pengaruh Kredit Perbankan Terhadap Pertumbuhan Ekonomi Provinsi di Sumatera." Convergence: The Journal of Economic Development 3, no. 2 (July 19, 2022): 179–95. http://dx.doi.org/10.33369/convergence-jep.v3i2.22388.
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The purpose of this study was to analyze working capital loans, investment loans and consumption loans in Sumatra Province in 2010-2018. This type of research used in this study is secondary data, namely data in the form of numbers or quantitative time series. Based on the results of the panel analysis of regression data by E-Views 9, working capital credit are positive and significant to economic growth in Provinces in Sumatra, investment credit is positive and significant to economic growth in Provinces in Sumatra and consumption credit have positive and significant income to economic growth in the Provinces all over Sumatra. Keywords: Working capital credit1, Investment credit2, Consumption credit3, Economic growth4
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Jiao, Jie, Jiyuan Zhang, Jie Yang, Wenwen Zhang, Fengtao Guang, and Liying Liu. "The Study of Carbon Neutralization Effects with Green Credit: Evidence from a Panel Data Analysis for Interprovinces in China." Sustainability 15, no. 17 (September 4, 2023): 13267. http://dx.doi.org/10.3390/su151713267.
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Giving full play to carbon emission reduction of green credits is essential to achieve carbon neutrality. According to low-carbon pilot policies and the condition of industrial transfer, this paper first sorts those provinces into different research zones. The zones are as follows: (Ⅰ) the first and second batch of low-carbon municipalities and the first batch of pilot provinces (L1) and other provinces (L2) and (Ⅱ) strong industry transfer-out zone (STR), weak industry transfer-out zone (WTR), and industrial transfer-in area (TIR). Then, we employ a dynamic panel data model and systematic GMM (SYS-GMM) approach to empirically test the impact of green credit and nongreen credit on carbon emissions. Further, this paper analyzes how to coordinate two types of credits to achieve carbon neutrality. The results show that, first, at the national level, the nexus of green credit and carbon emissions with an inverted U-shaped curve and the current impact of green credit is still in the first half of the inverted U-shaped stage. The achievement of carbon neutrality is associated with the ratio structure of green credit to nongreen credit and the scale of green credit. Second, the achievement of carbon neutrality is with regional heterogeneity. The achievement of carbon neutrality is associated with the scale of green credit in L2 and TIR, but also with the ratio structure of nongreen credit to green credit in L2 and STR. However, the carbon neutralization effects with green credit are insignificant in L1 WTR. Finally, based on those conclusions, this paper puts forwards some suggestions to provide references for the policy formulation of green credits and carbon neutrality.
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K, Roopa. "Credit Risk Management - A Case Analysis." International Journal of Science and Research (IJSR) 12, no. 12 (December 5, 2023): 361–66. http://dx.doi.org/10.21275/sr231128152822.
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Prasetiono, P., and Anisa Puspa Dina. "Determinant analysis of MSMEs credit in Indonesia." Diponegoro International Journal of Business 3, no. 2 (December 31, 2020): 104–14. http://dx.doi.org/10.14710/dijb.3.2.2020.104-114.
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This study was conducted to analyze several variables as the determinants of credit of micro, small, and medium enterprises (MSME) in Indonesia. Those variables are society income, geographic branch penetration (GBP), demographic branch penetration (DBP), credit account per capita (CAC), and deposit account per capita (DAC) of commercial banks. The samples used in this study are 33 Provinces in Indonesia in the period 2013-2017 using the purposive sampling technique. We examined data uses the non-participant observation method by directly quoting financial, GRDP, banking, geographical, and demographic data. The analysis used in this research is multiple linear regression consisting of the classic assumption test, F test, t-test, and hypothesis testing. This study indicated that society income, CAC, and DBP have a positive and significant effect on MSME credit. In contrast, GBP has a positive but non-significant effect on MSME credit, and DBP has a significant negative effect on MSME credit.
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Jalilian, Negar, Seyed Mahmoud Zanjirchi, and Mark Goh. "Interactive scenario analysis of banking credit risks in intuitive fuzzy space." Journal of Modelling in Management 15, no. 1 (November 18, 2019): 257–75. http://dx.doi.org/10.1108/jm2-01-2019-0011.
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Purpose The purpose of the paper is to bring attention to documentary credits and the efforts to reduce debt obligations in credit history is recognized as an important source of uncommitted bank earnings. Credit risk has a significant impact on the stability of the banking system. This paper identifies the types of credit risk in the banking supply chain. Design/methodology/approach The authors model the types of credit risk using the intuitive fuzzy failure modes and effects analysis (IFMEA) and intuitive fuzzy cognitive mapping. The population of the study that is needed for the interviews and expert panels comprises senior managers and experts of a leading bank in Iran. The respondents are experienced in credit and banking risk and were selected through judgment sampling and snowballing. Findings The findings suggest that reducing the risks of the foreign letters of credit contracts can mitigate the risk in the agricultural sector, the specific risks of rent-to-own contracts, the risk of the long-term facilities and the specific risk of the domestic letter of credit contracts. Originality/value This research investigates Iran Tejart Bank’s credit risk, formulates a model of the types of credit risk present and analyzes them using the intuitive fuzzy failure modes and effects analysis and intuitive fuzzy cognitive map. Through this credit risk model, one can then facilitate risk management for better financial stability. Also, the model can be used to evaluate the risk indicators.
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Qasem, Mais Haj, and Loai Nemer. "Extreme Learning Machine for Credit Risk Analysis." Journal of Intelligent Systems 29, no. 1 (June 18, 2018): 640–52. http://dx.doi.org/10.1515/jisys-2018-0058.
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Abstract Credit risk analysis is important for financial institutions that provide loans to businesses and individuals. Banks and other financial institutions generally face risks that are mostly of financial nature; hence, such institutions must balance risks and returns. Analyzing or determining risk levels involved in credits, finances, and loans can be performed through predictive analytic techniques, such as an extreme learning machine (ELM). In this work, we empirically evaluated the performance of an ELM for credit risk problems and compared it to naive Bayes, decision tree, and multi-layer perceptron (MLP). The comparison was conducted on the basis of a German credit risk dataset. The simulation results of statistical measures of performance corroborated that the ELM outperforms naive Bayes, decision tree, and MLP classifiers by 1.8248%, 16.6346%, and 5.8934%, respectively.
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Yan, Shihang, Geyong Min, and Irfan Awan. "PERFORMANCE ANALYSIS OF CREDIT-BASED FLOW CONTROL IN INFINIBAND INTERCONNECTION NETWORKS." Journal of Interconnection Networks 07, no. 04 (December 2006): 535–48. http://dx.doi.org/10.1142/s0219265906001843.
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Credit-based flow control scheme that can be used to support both end-to-end and link-level flow control is becoming increasingly popular in high speed system area networks (SAN), e.g. InfiniBand networks where multiple processor nodes and I/O devices are interconnected using switched point-to-point links. By virtue of such a scheme, the downstream node sends credits to the upstream node indicating the availability of buffer spaces. Upon receiving credits, the upstream node injects packets into the networks. Performance analysis of credit-based flow control scheme plays an important role for the design and optimization of InfiniBand interconnection networks which have been widely used in many high-performance cluster, Grid and P2P computing systems. This study develops a new queueing network model for performance evaluation of credit-based flow control in InfiniBand networks. The performance metrics to be derived include the mean queue length, throughput and response time of the system. Simulation experiments have been used to validate the accuracy of the queueing network model. Results obtained from the analytical model have showed that this model can effectively evaluate the performance of credit-based flow control in InfiniBand networks.
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Ahn, Philip, and Dong-Hoon Shin. "An Emprical Analysis of Global Emission Offset Price Determinants on Voluntary Carbon Market: Focusing on Demand Factor." Crisis and Emergency Management: Theory and Praxis 20, no. 1 (January 30, 2024): 137–48. http://dx.doi.org/10.14251/crisisonomy.2024.20.1.137.
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This study analyzes the correlation between voluntary carbon market credit prices and three key sets of variables. Prior research on compliance carbon markets has identified these factors as a significant influence on emission price factors. This study employs the Autoregressive Distributed Lag (ARDL) model to test these relationships and empirically examines short and long term correlations by conducting cointegration tests between each variable and the emission credit price. The results of the study are as follows:First, electricity prices exhibit a positive relationship with credit prices in the short term but a negative relationship in the long term. Second, compared to regulatory carbon market prices, credit prices are influenced by temperature variables, reflecting local weather conditions. Third, the energy variable emerges as the most crucial factor impacting prices in both compliance emissions trading systems and voluntary carbon credits. This implies that companies aiming for carbon neutrality through voluntary carbon market credits must develop comprehensive strategies that consider various external circumstances.
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Godwin, Michael, and Colin Lawson. "The Working Tax Credit and Child Tax Credit 2003-08: a critical analysis." Benefits: A Journal of Poverty and Social Justice 17, no. 1 (February 2009): 3–14. http://dx.doi.org/10.51952/aiom7585.
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This article examines the policy, administrative and compliance issues that have arisen with the UK Working Tax Credit (WTC) and Child Tax Credit (CTC). It provides a critical commentary on overpayments; underpayments; error and fraud; take-up; and employer compliance costs. From a social policy perspective, these problems have damaged the effectiveness of tax credits, and from public policy and public finance viewpoints, they have damaged the reputation of HM Revenue & Customs (HMRC) and HM Treasury. There is a strong case for a re-examination of the programme and its administration, to see if realistic reforms could deliver a more effective system.
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Maag, Elaine, and Nikhita Airi. "Moving Forward with the Earned Income Tax Credit and Child Tax Credit: Analysis of Proposals to Expand Refundable Tax Credits." National Tax Journal 73, no. 4 (December 1, 2020): 1163–86. http://dx.doi.org/10.17310/ntj.2020.4.11.
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Policymakers grapple with the related issues of unequal incomes, relatively poor health, education, and economic outcomes for low-income children, and hardship among low- and moderate-income families. Refundable tax credits provide substantial support and relief to many. This analysis details who benefits from the earned income tax credit (EITC) and the child tax credit (CTC) and four large-scale tax credit proposals that would provide substantial and ongoing benefits through these or similar credits. Broadly, proposals focused on children exclude childless adults and the elderly, and proposals focused on work exclude nonworkers, including most of the elderly, but include many workers with children.
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Gao, Jiaze. "Research on the Impact of Green Credit on Carbon Emission and Mechanism Analysis." Advances in Economics and Management Research 6, no. 1 (June 27, 2023): 319. http://dx.doi.org/10.56028/aemr.6.1.319.2023.
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Green credit policy is one of the important measures to promote the green transformation of economy and society and achieve the double carbon goal, which has developed rapidly in recent years. The sample was selected from 30 provinces and cities in China (excluding Tibet) from 2008 to 2019 to empirically investigate the effect of green credit on carbon emission intensity, and the study found that (1) green credit reduces carbon emission and plays a role in environmental protection. (2) Green credits act on carbon emissions through three major mediating variables: scale, technology, and structural effects, respectively, and ultimately reduce carbon intensity. This study provides a scientific basis for the formulation of green credit policy in China's energy conservation and emission reduction policy, and proposes policy measures to give full play to green credit to improve the quality and enthusiasm of economic and social growth, and to transform the economic development model to promote green economic development.
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Deari, F., and V. V. Lakshina. "Factors Determining Trade Credit Dynamics During Crisis: Panel Data Analysis for Macedonian Firms." Finance: Theory and Practice 23, no. 2 (May 4, 2019): 17–30. http://dx.doi.org/10.26794/2587-5671-2019-23-2-17-30.
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The study is aimed at determining the factors influencing the trade credits dynamics for twenty three firms registered on the Macedonian Stock Exchange, as well as at checking for crisis effects from 2011 to 2015. The study includes a review of the literature on commercial credit factors; elaborately analyzed descriptive statistics of the collected data and dependent variable variance; tests for unobservable effects and their functional form; evaluation of panel regression and interpretation of the results. The authors have proved that net trade credits for these firms depends mainly on the growth potential of lagging firms and their vulnerability, and the crisis effects are significant only for the latter factor. Moreover, the overall efficiency of firms’ assets and their ability to convert income into cash does not have a significant impact in the crisis and post-crisis periods. The growth opportunities and profitability demonstrate a negative impact, meaning that growing and more profitable firms on average tend to expand and receive more trade credits than counterparties. Profitability has a significant impact on trade credit and the effect is seen during the first year after the crisis. Thus, the dynamics of trade credits of registered Macedonian firms is largely determined by the internal factors of a firm, and not by the external macroeconomic situation. Therefore, better financial management is suggested to improve the trade credit policy. One of the directions for further research is the evaluation of the autoregressive component of the trade credit dynamics, as well as including spatial effects in the regression equation.
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Dinç, Yusuf. "Comparative empirical analysis on the effect of mortgage loan on capital adequacy ratio." Journal of Emerging Economies and Islamic Research 5, no. 3 (September 30, 2017): 6. http://dx.doi.org/10.24191/jeeir.v5i3.8827.
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Capital adequacy ratio is the main indicator for banks to proceed with their operations. Standards for the calculation of the ratio are based on Basel Accord. Key factor for the calculation is credit risk. Credit risk is a function of credit and collateral type. In this case, mortgage has lower risk weight based on its collateral structure on credit risk. This research evaluates the effects of mortgages on capital adequacy ratio to understand the effects of collateral based credits. The findings show positive results between capital adequacy ratio and mortgages of participation banks. However, mortgages have negative impact on capital adequacy ratio of conventional banks. Participation and conventional banks of Turkey are compared on linear regression to analyse the effects of mortgages on capital adequacy ratio. Results are important for further research and professionals.
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Silva, Fabio, and Cesar Analide. "Information asset analysis: credit scoring and credit suggestion." International Journal of Electronic Business 9, no. 3 (2011): 203. http://dx.doi.org/10.1504/ijeb.2011.042542.
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Gao, Ge, Xinmin Liu, Huijun Sun, Jianjun Wu, Haiqing Liu, Wei (Walker) Wang, Zhen Wang, Tao Wang, and Haoming Du. "Marginal Cost Pricing Analysis on Tradable Credits in Traffic Engineering." Mathematical Problems in Engineering 2019 (January 13, 2019): 1–10. http://dx.doi.org/10.1155/2019/8461395.
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This paper tries to explore a more applicable tradable credit scheme for managing network mobility from the angle of marginal cost pricing. The classic mathematical model-Cobweb model is used to analyze the stability of credit price. It is found that credit price is not always convergent in the trading market. It will show convergence, divergence, two-period simple behaviors, and even more complex dynamic behaviors, such as cycle movements and chaos. Considering the applicability and public goods character of tradable credits scheme, one public pricing mechanism- marginal cost pricing is explored. Analytical investigations and the numerical simulation of a particular case with linear demand and supply indicate that marginal cost pricing is an effective, sustainable, and socially feasible manner in managing the demand for car travel.
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Hodara, Michelle, Mary Martinez-Wenzl, David Stevens, and Christopher Mazzeo. "Exploring Credit Mobility and Major-Specific Pathways: A Policy Analysis and Student Perspective on Community College to University Transfer." Community College Review 45, no. 4 (August 11, 2017): 331–49. http://dx.doi.org/10.1177/0091552117724197.
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Objective: Problems with credit mobility, or the transfer of credits from a sending to a receiving institution, may be one reason why community college transfer students have low rates of bachelor’s degree completion. This study investigates different policy approaches to credit mobility and how college staff and students experience transfer at the campus level. Method: The study utilizes data from policy documents and legislative statutes, phone interviews with higher education system officials, and college staff across 10 states, and interview data with students and staff collected during site visits to 2- and 4-year colleges in Tennessee, Texas, and Washington. Results: We categorized credit mobility policies across a continuum, from system-wide transfer initiatives to local-level institution-to-institution approaches. We refer to these different policy systems as 2 + 2, credit equivalency, and institution-driven. Across the systems, policies may not be working as intended because many transfer students do not select a major and destination institution early enough in their community college career to avoid credit loss. Moreover, institutions may lack capacity to provide personalized support to students interested in transfer early in their career. Contributions: We provide a new framework to understand different policy approaches to ensuring transfer students’ credits transfer and apply to their major, and offer research, policy, and practice considerations to improve credit mobility across different policy systems.
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Jureviciene, Daiva, Kamile Taujanskaite, and Vytaute Sukacevskyte. "Indirect Factors Affecting Personal Solvency: Empirical Analysis Of Lithuanian Consumer Credit Market." European Scientific Journal, ESJ 12, no. 1 (January 29, 2016): 157. http://dx.doi.org/10.19044/esj.2016.v12n1p157.
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The aim of this article is to analyze the interrelationship between solvencies of consumer credits customers and indirect factors such as borrowing motivation as well as demographical and socioeconomic factors characterizing the borrowers’ personality. The results of this research were obtained using statistical software SPSS. Systemic scientific literature analysis, correlation analysis of randomly selected records from consumer credit contracts, Student t-test criteria application for testing hypothesis, analysis of Levine's and Pearson’s correlation criteria are used in the article. In addition, previously carried out expert evaluation research results were compared with actual consumer credit contracts data. The novelty of this research is classification of factors influencing personal solvency into direct and indirect. The influence of indirect factors (demographic, socioeconomic and borrowing motives) has been investigated in risky consumer credit market of Lithuania. The results show that the most influencing indirect factor is the purpose of consumer credit.
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Adewale, Aregbeshola R. "Financial Regulation, Credit Consumption And Economic Growth An Analysis Of The National Credit Act In South Africa." Journal of Applied Business Research (JABR) 30, no. 2 (February 27, 2014): 367. http://dx.doi.org/10.19030/jabr.v30i2.8406.
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Credit consumptions are as old as human creation. Evidence suggests that more than two third of the consumer population in the developed world lives on credit, and the volume of trade credits have grown steadily over the past decade. The increase in credit consumption has hurled an unprecedented level of economic growth. However, recent strains placed on the macroeconomic fundamentals by credit mismanagement have resulted in a series of policy interventions to ensure a guided process of credit consumption. While credit consumption regulation is not a new phenomenon, the recent spates of interventions are essential to ameliorate opportunistic behaviours (such as moral hazards and adverse selection) not only among major lenders, but also among the entire market participants. This article estimates the effects of changes in regulation as regards the rate of credit consumption and ultimately, economic growth in South Africa. Using quarterly dataset from various sources between 2007 and 2012 in regression analyses, it was found that an increase in credit consumption has precipitated an increase in economic growth. The study also uncovers that the regulatory interventions by the South African government play significant roles in reducing reckless (secured) lending, during the period under consideration at the expense of an increase in unsecured lending.
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Soydan, Aylin, and Serap Bedir Kara. "IMPLICATIONS OF CAPITAL FLOWS FOR DOMESTIC CREDIT GROWTH: EVIDENCE FROM PANEL DATA ANALYSIS." Eurasian Journal of Economics and Finance 8, no. 4 (2020): 231–45. http://dx.doi.org/10.15604/ejef.2020.08.04.004.
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Following the 2007-2009 global crisis, high credit growth became an issue of concern with an emphasis on its relationship with capital flows. It is argued that large and volatile international capital flows lead to credit expansion, which in turn, may cause economic and financial instabilities when it reaches excessive levels, particularly in developing countries. This paper aims to investigate the association between credit growth and capital inflows in the context of developing countries by using panel data analysis. The methodology employed in the study offers a number advantages by allowing for heterogeneity and cross-sectional dependence in the panel, while also considering the endogeneity issue. The overall results of the study provides evidence for the impact of capital inflows, more particularly other capital inflows, on credit growth in the sample. This finding suggests a more direct relationship between capital inflows and credit creation as other inflows mostly comprise international banking and trade credits. It is not surprising given the fact that banking sector has a critical role in the financial systems of developing countries. The significance of international dimension for credit creation through other capital inflows and the intermediary role of the banking system should have monetary policy implications, in the macroprudential or more conventional fashion.
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Osabohien, Romanus, Adesola Afolabi, and Abigail Godwin. "An Econometric Analysis of Food Security and Agricultural Credit Facilities in Nigeria." Open Agriculture Journal 12, no. 1 (October 31, 2018): 227–39. http://dx.doi.org/10.2174/1874331501812010227.
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Background:It is a known fact that the efficiency of credit facility positively contributes to production base of a sector, especially the Nigerian agricultural sector which is recognised as the heartbeat of the economy by employing over 70% of the country’s labour force; this forms the motivation for this study.Objective:This study examined the potential of agricultural credit facilities in terms of commercial bank credit to agriculture and agricultural credit guarantee scheme fund (ACGSF) and their corresponding interest rates to farmers towards increasing agricultural production as the pathway to food security in Nigeria.Method:The study employed the Autoregressive Distribution Lag (ARDL) econometric approach on the time series data sourced from the Central Bank of Nigeria (CBN) statistical bulletin, Food and Agriculture Organisation (FAO) and the World Development Indicators (WDI) for the period 1990-2016.Result:The result from ARDL showed that commercial banks credits and ACGSF increased food security by 8.12% and 0.002% respectively, while population reduces food security by 0.001%.Conclusion:The study concluded that population should be controlled through family planning and adequate financing of the ACFSF by the government and monitor commercial banks leading interest rates on credit facilities.
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Adejo, P. E., J. A. Olowogbayi, and C. Akubo. "Analysis of credit demand and supply markets among youth farmers in Agro-ecological zone B, Kogi State, Nigeria." ADAN Journal of Agriculture 1, no. 1 (December 20, 2020): 1–10. http://dx.doi.org/10.36108/adanja/0202.10.0110.
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There has been a shift of dominance in the sources of credit markets in Nigeria from the Government to the private sector. Inadequacy of capital has been identified as one of the constraints faced by youth farmers. This research work aimed to analyse credit demand and supply markets among youth farmers. Data collected were analyzed using descriptive, multiple regression and Z-test. Most credits were sourced through informal souces by the youth farmers. Personal savings(65%), RoSCAs (52.5%) and Money lender(50.8%) respectively are from the informal sources while LAPO (42%) and even commercial bank (15%) which is the least are obtained from formal sources. Further, the study showed that 50% of the respondents demanded credit to the tune of N2, 000,000 while most of the credit supplied(45.83%) was only less than N100.000. The multiple regression results showed an R2 value of 0.65. The study identified the potential credit demanded by the farmers to be at the range of N1, 000,001-2,000,000. Furthermore, the study identified age, marital status, level of education, interest rate and credit awareness as the major determinants of the volume of actual credit supplied by youth farmers. The test for significant difference shows that there is significant difference in the amount of credit sourced and required by the youth farmers by 1%. The study recommends that the interest rate charged on credit facilities should be reduced to motivate the youth farming in the study area to source for credit
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Ashur, George A. "Effective Sovereign Credit Analysis." AIMR Conference Proceedings 1998, no. 3 (June 1998): 3–9. http://dx.doi.org/10.2469/cp.v1998.n3.2.
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Gootkind, Christopher L. "Improving Credit Risk Analysis." AIMR Conference Proceedings 2002, no. 1 (March 2002): 97–105. http://dx.doi.org/10.2469/cp.v2002.n1.3176.
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Dr. A. Vinayagamoorthy, Dr A. Vinayagamoorthy, and K. Senthilkumar K. Senthilkumar. "An Analysis Of Growth Of Credit Card Industry." Indian Journal of Applied Research 1, no. 5 (October 1, 2011): 3–5. http://dx.doi.org/10.15373/2249555x/feb2012/2.
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Hassan, M. Kabir, Jennifer Brodmann, Blake Rayfield, and Makeen Huda. "Modeling credit risk in credit unions using survival analysis." International Journal of Bank Marketing 36, no. 3 (May 8, 2018): 482–95. http://dx.doi.org/10.1108/ijbm-05-2017-0091.
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Purpose The purpose of this paper is to investigate proprietary data from customers of a Southern Louisiana credit union. It analyzes the factors that contribute to an accelerated failure time (AFT) using information from customers’ credit applications as well as information provided in their credit report. Design/methodology/approach This paper investigates the factors that affect credit risk using survival analysis by employing two primary models – the AFT model and the Cox proportional hazard (PH) model. While several studies employ the Cox PH model, few use the AFT model. However, this paper concludes that the AFT model has superior predictive qualities. Findings This paper finds that the factors specific to borrowers and local factors play an important role in the duration of a loan. Practical implications This paper offers an easily interpretable model for determining the duration of a potential borrower. The marketing department of credit unions can then use this information to predict when a customer will default, thus allowing the credit union to intervene in a timely manner to prevent defaults. Further, the credit union can use this information to seek out customers who are less likely to default. Originality/value This study is different from the previous research due to its focus on credit unions, which have distinct characteristics. Compared to similar lending institutions, the charter of the credit union does not allow management to sell off loans to other investors.
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Amat, Oriol, Raffaele Manini, and Marcos Antón Renart. "Credit concession through credit scoring: Analysis and application proposal." Intangible Capital 13, no. 1 (January 19, 2017): 51. http://dx.doi.org/10.3926/ic.903.
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Purpose: The study herein develops and tests a credit scoring model which can help financial institutions in assessing credit requests. Design/methodology/approach: The empirical study has the objective of answering two questions: (1) Which ratios better discriminate the companies based on their being solvent or insolvent? and (2) What is the relative importance of these ratios? To do this, several statistical techniques with a multifactorial focus have been used (Multivariate Analysis of Variance, Linear Discriminant Analysis, Logit and Probit Models). Several samples of companies have been used in order to obtain and to test the model. Findings: Through the application of several statistical techniques, the credit scoring model has been proved to be effective in discriminating between good and bad creditors. Research limitations: This study focuses on manufacturing, commercial and services companies of all sizes in Spain; Therefore, the conclusions may differ for other geographical locations.Practical implications: Because credit is one of the main drivers of growth, a solid credit scoring model can help financial institutions assessing to whom to grant credit and to whom not to grant credit.Social implications: Because of the growing importance of credit for our society and the fear of granting it due to the latest financial turmoil, a solid credit scoring model can strengthen the trust toward the financial institutions assessment’s. Originality/value: There is already a stream of literature related to credit scoring. However, this paper focuses on Spanish firms and proves the results of our model based on real data. The application of the model to detect the probability of default in loans is original.
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Dewi, Ilma Satriana, Dwi Rachmina, and Netti Tinaprilla. "PERANAN KREDIT KETAHANAN PANGAN DAN ENERGI DALAM PENINGKATAN PRODUKSI DAN KEUNTUNGAN USAHATANI PADI DI KABUPATEN KAMPAR, RIAU PROVINSI." DINAMIKA PERTANIAN 30, no. 2 (November 1, 2017): 163–70. http://dx.doi.org/10.25299/dp.2015.vol30(2).810.
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The majority of farmers with small scale enterprises are still facing a capital shortage primarily rice farming. Capital constraints caused farmers must perform farm activities with a limited input. Limited input causing the output and the revenue generated is not optimal. Food security and energy credits are one of the credit which intends to help especially rice farmers. By the low interest rate, this credit is expected to help farmers for improving the use of inputs and increasing the output and revenue. The aims of study are to evaluate the use of credit on production activities and to analyze the increase in rice farming profits before and after the credits. Research methods used in this research were descriptive analysis, multiple regression analysis, and different test (t-test). The results showed that the rice farmers used KKPE for 53% for rice farming which included the purchase of equipment and farm machinery, production inputs and labor wage. An increase in rice farming profits, but not affected by the credit, and from the t-test result that there was no difference profits before and after credit.
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Shahzad, Umeair, Jing Liu, and Fukai Luo. "STOCK LIQUIDITY AND CORPORATE TRADE CREDIT STRATEGIES: EVIDENCE FROM CHINA." Journal of Business Economics and Management 23, no. 1 (November 30, 2021): 40–59. http://dx.doi.org/10.3846/jbem.2021.15655.
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This study investigates the nexus of stock liquidity and trade-credit policies in China from 2002 to 2017. The estimates are robust to alternative proxies, various fixed-effects, and the exogenous impact of Chinese split share structure reforms (SSSR) 2005-06 is investigated through the difference-in-difference analysis. The results validate that stock liquidity significantly impacts firms’ capacity to produce more trade credit supplies and less reliant on trade credit demand. The study applied SUEST analysis to investigate the effect of the Chinese institutional setting. The nexus of stock liquidity and trade credit strategies is substantial in state-owned enterprises. Additional analysis revealed that the said association is more visible to credit-constrained and equity-reliant enterprises. The policymakers should focus on market liquidity because it elevates firms’ capacity to mobilize capital through trade credit provisions. The micro aspect of this study suggests that stock liquidity allows managers to shape non-price competitive strategies and avoid excessive usage of trade credits.
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Siekelova, Anna, and Erika Spuchlakova. "The Assessment of Client Creditworthiness Using Predictive Methods Based on Multivariate Discriminant Analysis." Accounting and Finance Review (AFR) Vol.2(1) Jan-Mar 2017 2, no. 1 (March 14, 2017): 17–21. http://dx.doi.org/10.35609/afr.2017.2.1(3).
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Objective - Trade credit is the most important source of external finance for many companies. It appears on every balance sheet and represents more than 50 percent of company's short-term liabilities and a third of all company's total liabilities in OECD countries. Late payment of invoices may suffer firm's solvency. The European economies are now putting the years of financial turmoil and debt crisis behind them and several macro-economic indicators are pointing towards a brighter future. The aim of this paper is to assess creditworthiness of companies. Methodology/Technique - Assessment of client creditworthiness carried out using predictive methods based on multivariate discriminant analysis Findings - The situation in the enterprise can be characterized as stable. An enterprise that chooses this client to provide it a trade credit should also consider supplementing the predictive models by complex financial and economic analysis and review of available. If the firm provides trade credit to more clients, it is necessary to consider that the terms of trade credits may not be the same for everyone but also it is not in the power of company to approach to each client individually. Novelty - The study suggests that client groups can be created by using cluster analysis. Thus, the company may increase efficiency in the provision of trade credit. Type of Paper Review Keywords: Trade Credit; Trade Credit Receivables; Late Payment; Predictive Model; Z Score; IN 01; Taffler Model; G Index; SAF 2002. JEL Classification: E51, G21, G33.
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Sevim, Cuneyt, Aykut Ekiyor, and Ali Tosyali. "As A Supply Chain Financing Source, Trade Credit and Bank Credit Relationship during Financial Crises from Clustering Point of View." International Business Research 9, no. 4 (March 5, 2016): 45. http://dx.doi.org/10.5539/ibr.v9n4p45.
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<p>This paper examines trade credit and bank credit behavior of firms during financial crisis using World Bank Survey dataset that contains detailed data on trade credit utilization of firms. Unlike literature, cluster analysis is used in order to investigate credit behavior of firms during financial crisis. For better clustering results, feature selection method is used to select variables thought to be important on model. When examined the trade and bank credit behavior of clusters that have been formed by using these variables with clustering analysis, it has been found that impact of the crisis on firms in the supply chain is important. It is found that due to demand fall for goods generated by crisis, firms are motivated to give trade credits to their customers in order not to lose them. However, firms need financial support either from the previous link in the supply chain through trade credit or from the financial institutions through bank credit.</p>
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Lastu, Nobertus Purnomo, Werner Ria Murhadi, and Ratna Widyanti W. "An Analysis on the Factors Affecting Credit Selection In BPR to Increase Competitiveness (BPR Case Study in Surabaya)." Jurnal Bisnis Terapan 4, no. 2 (December 18, 2020): 159. http://dx.doi.org/10.24123/jbt.v4i2.2943.
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Bank Perkreditan Rakyat (BPR) is part of the banking financial institutions apart from the commercial banking. .One of the activities of the BPR is to distribute the credits as done by the commercial banks. Problems. BPR as micro financial institutions, in doing their business to distribute the credit up to certain amount, are faced with the commercial banks which have more competitive advantages, both in the price and facilities provided. Objective of this research is to identify the factors influencing the customers in making decisions to take the credit at BPR. By identifying the determinant factors in choosing the banks, BPR can use it to improve their services to the customers and at the same time BPR can use it as a strategy in giving credit to the customers or debtors. The metode employed in this study was regressive logistic method, which was used to identify what factors determine the customers to choose credit at BPR. The conclusion is that the procedures and personality of staff are the main factors making the customers choose credit at BPR
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Pujiastuti, Nani. "AN ANALYSIS OF THE CREDIT SERVICE EARNINGS UPON THE BALANCE OF BUSINESS REVENUES AT THE CREDITS AND SAVINGS BUSINESS UNIT OF KPRI IN SUKABUMI." Accounting Journal of Binaniaga 3, no. 02 (December 31, 2018): 29. http://dx.doi.org/10.33062/ajb.v3i2.231.
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“An analysis of the Credit Service Earnings upon Balance of Business Revenues at the Credits and Savings Business Unit (SPU) of KPRI in Sukabumi”. This research has been done since the writer is interested in figuring out the problems about the earnings of credit services at KPRI in Sukabumi and the balance of business revenues (SHU) at KPRI in Sukabumi, as well as how to analyze the credit service earnings upon the balance of business revenues at the credits and savings business unit of KPRI in Sukabumi. However, this research is a quantitative study using a descriptive approach where the writer has been describing only the existing data using a qualitative description. Technique of data collection has applied field study research and library study. The result of the research has indicated that the earning of credit services at KPRI in Sukabumi has been increasing from year to year. The biggest increasing one was happened in 2009 which was Rp 846,979,876.00 higher than the previous year, and the smallest one was happened in 2012 which was Rp 231,494,441.00 less than the previous year. Nevertheless the balance of business revenue has been increasing from 2009 to 2011 but it has decreased in 2012. The biggest increasing one was happened in 2009 which was Rp 89,261,608.00 and it was decreased in 2012 which was Rp 18,352,811.00. The decreasing of this revenue was happened due to the total amount of business revenue had been received only from the credit units and other earnings. But , not any revenue of goods credit facilities had been received since there has not any transactions of goods selling been occured in 2012. Based on the analysis of the credit service earnings upon the balance of business revenues at KPRI in Sukabumi, it has indicated that the earnings of credit service has been relatively fluctuative each year. The contribution of the credit service earnings upon the balance of business revenue in 2008 was the biggest one which was 15.76% and the lowest one was in 2012 which was 1.79%.Key words: Credit, Saving, Service Earning, Business Revenue
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Bach, Helena, Pietro Campa, Giacomo De Giorgi, Jaromir Nosal, and Davide Pietrobon. "Born to Be (Sub)Prime: An Exploratory Analysis." AEA Papers and Proceedings 113 (May 1, 2023): 166–71. http://dx.doi.org/10.1257/pandp.20231096.
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We study how inheriting parents' credit histories affects the initial credit scores, access to credit, and life cycle borrowing of young individuals entering the credit market. We establish that inherited histories significantly positively affect initial scores, which in turn are very persistent. Inherited histories only affect outcomes through initial credit scores, which then have significant persistent effects on credit use and access, such as having a mortgage. Our results are consistent with mechanisms of self-fulfilling liquidity traps: low credit scores mean lack of access to credit, reinforcing low credit scores. Future research should address the contribution of such mechanisms to wealth inequality.
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Gohar Voskanyan. "ANALYSIS OF THE CURRENT SITUATION OF INSURANCE MARKET AND CREDIT INSURANCE IN RA." World Science, no. 11(39) (November 30, 2018): 46–49. http://dx.doi.org/10.31435/rsglobal_ws/30112018/6234.
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The Armenian insurance market has undergone major changes in the transition to a market economy. Growth tendencies were observed in almost all insurance indicators. At present, the RA Central Bank is the body overseeing the financial system of RA. The positive shifts in the insurance market are partially conditioned by its activities. The article presents the main directions of the activities of insurance companies in RA. Insurance premiums and insurance indemnities have undergone comparative analysis. In a number of countries the insurance is one of the most important prerequisites for the provision of agricultural loans through which banks try to mitigate their credit risk. Agricultural insurance is not implemented in the Republic of Armenia, which negatively affects the stability and development of the sector. Taking into account the advantages of compulsory insurance and the current socio-economic conditions created in Armenia, the article recommends to implement compulsory insurance of agricultural credits. The necessity of introduction of credit insurance in the RA agrarian sphere has been justified, the reasons of non-implementation of agricultural credit insurance has been raised, and the main results expected when implementing agricultural credit insurance has been presented.
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CM, Vidya. "New Era of Credit Analysis." Ushus - Journal of Business Management 17, no. 3 (July 1, 2018): 39–46. http://dx.doi.org/10.12725/ujbm.44.5.
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Credit analysis is the evaluation of the credit worthiness of a business or an organisation done through historic data like audited balance sheets, forecasts in the form of budgets and cash flow, ratings given by credit rating companies, analysis of ratios, capital marketisation, share prices and many more benchmarks. However, in today’s world, “Big Data” is what is being spoken about by all. Data is collected every second from various sources like social media sites, online and offline purchases and so on. The emerging era of credit analysis is based on consumer behaviour online; their likes and dislikes, preference for the products they purchase and so on. Everything is recorded through “Big Data” and is accessible to judge whether a person is worthy of credit or not. All these are studied through complicated mathematical computations to analyse sequences of information within an ocean of data. These credit scorings can be provided within no time and are equally cost-efficient. The study focusses on the effectiveness of big data for credit analysis.
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Rakhman, M. S., and O. M. Haltseva. "Analyzing the Structural Changes in the Credit Performance Indicators of Banks of Ukraine." Business Inform 9, no. 512 (2020): 228–38. http://dx.doi.org/10.32983/2222-4459-2020-9-228-238.
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The revenue part of the banking institution is formed mainly due to the volume of credits provided and depends on the conditions of crediting the financial services market participants. Consequently, the insufficiency or inaccessibility of credit resources adversely affects the status of the entire economy. The article is aimed at an economic and statistical analysis of the current status of credit activity of the banking system of Ukraine in the dynamic conditions of development of the national economy, identifying tendencies, substantiating the prospects for expanding and reducing the risks of credit activities of banking institutions. The role and tasks of the bank’s credit operations in the country’s economy are considered; the status of the credit portfolio of the banking system in recent years is characterized; a new redistribution of banks to groups by the structure of authorized capital and the size of assets is provided. An analysis of the volumes and structure of the banks’ assets in terms of organizational and legal forms of ownership (public, private, foreign) and the proportion of credits in the structure of assets is carried out. The authors analyze changes in the total volumes and dynamics of crediting in terms of: crediting entities; national and foreign currencies; dynamics of the exchange rate and the structure of crediting by type of activity. The impact of seasonality of credit provision is identified. An assessment of the number, structure and volumes of crediting by non-financial credit institutions is provided. The predictive models are developed using different mathematical functions and statistical methods. As a result of the carried out SWOT-analysis, the main problems and shortcomings of the banking system are identified. A project of recommendations on reducing credit risks is proposed.
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Lu, Haoyang, Jing Tong, and Yajiao Tang. "Analysis of Green Credit and the Ecological Welfare Performance Based on Empirical Models and ARIMA(2,3,2): Taking China as an Example." Sustainability 14, no. 19 (September 21, 2022): 11919. http://dx.doi.org/10.3390/su141911919.
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We study the relationship between green credit and ecological welfare performance, green credit’s mechanism, and future trends of ecological welfare performance in China. We aim to determine whether the green credit policy has a positive or negative effect on ecological welfare performance and to give suggestions about green credit for emerging markets, with China as an example. These problems are evaluated with two empirical models by using quadratic and interaction terms, as well as a time series model, ARIMA(2,3,2). The results show that the relationship between green credit and ecological welfare performance is an inverted U shape, and ecological welfare performance peaks when loans approach 2934.2 billion yuan, which equals 441.7446 billion dollars, corresponding to loans between 2015 and 2016. In addition, national income and ecological footprint have a suppressive effect on the impact of green credit on ecological welfare performance, and lifespan can positively affect the mechanism. Moreover, the result of ARIMA(2,3,2) corresponds to previous results and indicates that the ecological welfare performance will fluctuate within a range if green credits continue to be issued.
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Wisudawan, I. Gusti Agung. "Aspek Hukum Perjanjian Kredit Pada Koperasi." JATISWARA 27, no. 1 (October 11, 2017): 96–123. http://dx.doi.org/10.29303/jtsw.v27i1.27.
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The credit agreement offered by corporation is significant to enhance its member’s welfare as well as sustainability of small and middle enterprises. There some significant aspects must be considered in the granting of credit within corporation,i.e firstly, concerning credit mechanism or credit procedure because each of coorperation has different policy in granting credit; secondly, concerning prudential standard. The application of which is trongly significant to provide legal certainty not only for debtor but also creditor (corporation) which covers fit and proper test as well as credit analysis by appling some principles as follows:5C,7P, and 3R and;thirdly, concerning technical resolution toward credit’s default caused by the bad faith’s debtor in performing credit agreement such as taking the available legal procedures as well as using alternative dispute resolution either mediation or negotiation.
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Iulia, Iuga. "Dimensions Of The Credit Risk Analysis Process And Credit Risk." Annales Universitatis Apulensis Series Oeconomica 3, no. 8 (July 31, 2006): 48–53. http://dx.doi.org/10.29302/oeconomica.2006.8.3.8.
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Hutchinson, T. P. "Opinion piece ROC analysis in credit scoring and credit judgment." Journal of Database Marketing & Customer Strategy Management 13, no. 3 (April 2006): 182–85. http://dx.doi.org/10.1057/palgrave.dbm.3240295.
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Ивченко, Юлия, and Yuliya Ivchenko. "Company credit policy as a factor in its effective and long-term development." Russian Journal of Management 2, no. 3 (July 1, 2014): 123–36. http://dx.doi.org/10.12737/10590.
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The scientific and practical publications and regulatory sources for essence credit policy of the firm are analyzed. Based on the analysis it was concluded that there is no unified approach to the content of the term «company credit policy». The credit policy of the firm as a set of principles and methods for management of accounts receivable and the provision of trade credit to buyers; management of payables and bank credits as the main sources of borrowed working capital; management of free cash in the form of giving commercial loans to other companies and opening bank deposits examined.
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Tô, Ngọc Hưng, and Thùy Dương Tô. "Some solutions to promote green credit growth from the banking industry in Vietnam." Tạp chí Khoa học và Đào tạo Ngân hàng, no. 257 (October 2023): 1–9. http://dx.doi.org/10.59276/tckhdt.2023.10.2586.
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Green credit refers to credits that banks invest in production and business projects that do not pose risks or are intended to protect the environment. With the aim of targeting energy saving, renewable energy and clean technology projects, green credit products contribute to bringing great benefits to sustainable economic development in the above countries in the world and Vietnam in recent years. However, reality shows that there are still many difficulties and challenges in the process of implementing growth of this type of credit. Based on the analysis of the current situation of green credit activities in Vietnam in recent times, this article aims to propose some recommendations to promote green credit growth in the coming time.
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AMADI, Sonny Nwonodi, Victor AKIDI, and Samuel BIIRA. "Private Sector Investments: The Implication of Deposit Money Banks’ Credits in Nigeria." International Journal of Research and Scientific Innovation X, no. XII (2024): 576–86. http://dx.doi.org/10.51244/ijrsi.2023.1012043.
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Reported in this article is the empirical effect of deposit money banks’ credits on Nigeria’s private sector’s investments. The study was evaluated empirically over a period of forty-one years, from 1981 to 2021. Deposit money banks’ credits is proxied by bank credits, with interest rate and money supply moderating regressors while private sector investments is measured as private investments. Utilized for analysis are sourced secondary data from the Central Bank of Nigeria statistical bulletin and the applied methods of analysis include descriptive statistic technique, Augmented Dickey-Fuller’s Unit Root test, Auto regressive Distributed Lag technique. The findings obtained showed clearly that private investments and banks’ credits were stable at levels, as cost of credit (interest rate) and money (liquidity) supply were stationary at first difference. In addition, banks’ credits had direct and significant effects on the regress and (private investments) in Nigeria, cost of credit had negative but significant bearing on private investments while money supply had positive and significant effects the independent variable. Lastly, there exists long-run equilibrium rapport among private investment, banks’ credits, interest (credit) rate and money supply at 5 percent critical level. Sequel to these findings, it is therefore concluded that deposit money banks’ credits had significant-positive effects on private sector investments in Nigeria in both short run and long run. It is thus, recommended among others that deposit money banks need encouragement to expand credit extensions to private sector operators for sustainable enhancement of investments in this sector of the economy.
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Mikołajczak, Paweł, and Robert Skikiewicz. "The situation on the credit market versus the rate of economic growth in chosen countries of East-Central Europe." Ekonomia i Zarzadzanie 8, no. 1 (March 1, 2016): 62–70. http://dx.doi.org/10.1515/emj-2016-0007.
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Abstract The article concerns the comparative analysis concerning credit market situation on the background of economic growth changes in Poland, the Czech Republic, Lithuania and Hungary. The main objective of this article is to identify the similarities and differences in the economic situation of the whole economies and credits market conditions in individual countries. This relationship has been verified for each country. To determine the strength of the relationship between the dynamics of changes in the value of credits and GDP, Pearson correlation analysis was used. The basis of the analysis presented in the article was data from central banks, Central Statistical Office and Eurostat. Time horizon under investigation covered the period of 2004-2013. The results of analysis indicate that both the economic condition of entire economies, as well as the situation in the credit market remained diverse in all analyzed countries. Among the most significant similarities there was found that changes in the rate of economic growth in the analyzed countries remained at a moderate depending on the dynamics of changes in the credit market. Although the analyzed countries experienced a financial crisis, not all of them recorded a negative growth rate of GDP and credits.
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Feinland Katz, Laura. "Corporate Credit Analysis: Latin America." AIMR Conference Proceedings 1998, no. 3 (June 1998): 38–46. http://dx.doi.org/10.2469/cp.v1998.n3.6.
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Emery, Dana M. "Credit Analysis throughout the Cycle." CFA Institute Conference Proceedings Quarterly 30, no. 2 (June 2013): 31–43. http://dx.doi.org/10.2469/cp.v30.n2.2.
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Lucas, Douglas J. "Default Correlation and Credit Analysis." Journal of Fixed Income 4, no. 4 (March 31, 1995): 76–87. http://dx.doi.org/10.3905/jfi.1995.408124.
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Miller, Chad R., and Brian Richard. "The Policy Diffusion of the State R&D Investment Tax Credit." State and Local Government Review 42, no. 1 (April 2010): 22–35. http://dx.doi.org/10.1177/0160323x10364748.
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Since the first U.S. state adopted the Research and Development (R&D) tax credit in the early 1980s, the policy has spread to most of the other states. The diffusion continues with numerous modifications and enhancements to the basic R&D tax credit. This study examines the diffusion of the R&D investment tax credit using event history analysis supported by qualitative research. The conclusions of the research are that the R&D tax credit is an economic development approach associated with an existing manufacturing base and implementation is aided by political factors. Adjacent state competition does not appear to lead toward adoption. Applying these findings to the current literature on the effectiveness of the state R&D tax credits highlights the need for thorough policy evaluation before the adoption of tax credits as part of an economic development program.
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Lokesha and Iqbal Thonse Hawaldar. "Impact of factors on the utilization of agricultural credit of banks: an analysis from the borrowers’ perspective." Banks and Bank Systems 14, no. 1 (April 1, 2019): 181–92. http://dx.doi.org/10.21511/bbs.14(1).2019.16.
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Agricultural credit is required for the development of agriculture scenario in any economy. Commercial, cooperative and regional rural banks have extended agricultural credit to the farmers in Dakshina Kannada district of India. The effectiveness of agricultural credit system depends on the utilization of credit funds by the borrowers. The present study made an attempt to understand the factors influencing the utilization of agricultural credit of banks in Dakshina Kannada. The study used primary and secondary data. Primary data are gathered from the borrowers of banks operating in Dakshina Kannada district. The study found that there is an impact of demographic, agriculture and agricultural credit factors on the purpose of utilization of agricultural credit in Dakshina Kannada district.
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Gill, Suveera. "An Analysis of Defaults of Long-term Rated Debts." Vikalpa: The Journal for Decision Makers 30, no. 1 (January 2005): 35–50. http://dx.doi.org/10.1177/0256090920050104.
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Lately, the credit rating agencies have been the subject of significant criticism for failing to warn the investors of the defaults well in advance. Investors in long-term debt instruments are usually risk averse, buy-and-hold types; and hence, for them, the variability of investment-grade default rates is particularly important since they employ simple investment-grade rating cut-offs in the design of their investment eligibility plan. According to ICRA (Investment Information and Credit Rating Agency of India) and the other credit rating agencies, default means that the company has either already failed in the payment of interest and/or principal as per terms or is expected to fail. The debt rating at no time informs as to how much bond face value holders would recover in the event of a default. The present regulations pertaining to the credit rating agencies preclude the investors and issuers from suing agencies for awarding a particular rating. Hence, credit ratings are of value only as long as they are credible. This paper tests the reliability of ratings assigned by ICRA on the basis of the actual default rate experience on long-term debt across five sectors over a period of seven years, i.e., 1995–2002. The reason for including only long-term debt instruments for the purpose of analysis is that the assigned rating and its movement can be observed only over a long period. Since the credit rating agencies do not publish ratings that are not accepted by the issuers, this study is limited to only those issues that have been accepted and used by the issuers. The default statistics were examined sector-wise, period-wise, and company/institution-wise. Analyses of the background and business, operating performance, management and systems, financial performance, prospects, key issues, and the reasons cited for defaults were undertaken with respect to all the companies. Simple metrics like default rates by rating grades and rating prior to default were used to analyse whether low ratings (i.e., speculative-grade ratings) were assigned by ICRA to defaulting credits well in advance of default rate. Further, an attempt was made to identify whether companies in default had issued other debt instruments that were rated by other credit rating agencies. The findings highlight the following: The performance of the manufacturing sector vis-a-vis other sectors has been dismal. The period of high defaults (1997-1999) coincides with a high interest regime and poor economic conditions in India. ICRA's performance in terms of proper surveillance and provision of timely and complete information about the companies rated by them has not been up to the mark. The findings certainly draw attention towards the fact that excessive reliance on credit rating needs to be reduced. Since the governance of the credit rating agencies is questionable, adequate steps have to be taken to make them more accountable.