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Journal articles on the topic 'Private sector credit'
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Gbenga, Olorunmade, Samuel Olusegun James, and Adewole Joseph Adeyinka. "Determinant of Private Sector Credit and Its Implication on Economic Growth in Nigeria: 2000-2017." American Economic & Social Review 5, no. 1 (March 26, 2019): 10–20. http://dx.doi.org/10.46281/aesr.v5i1.242.
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The study examined the determinant of private sector credit and its implication on economic growth in Nigeria. The fluctuation in the supply of money and credit is the basic causal factor at work in cyclical process; when money supply falls, prices decrease, profit decrease, production activities become sluggish and production falls and when money supply expands, price rise, profit increase and the total output increases and finally growth takes place. The main objective of this study is to examine the relationship between Private Sector Credit and Gross Domestic Product. Data were obtained from Central Bank of Nigeria statistical bulletin. Simple regression analysis was used to achieve the stated objective. It was revealed in the determinant of credit supply equation 1 that there was significant relationship between Total credits to private sector and money supply in Nigeria. It was also discovered in the Private Sector Credit and Economic Growth Equation 2 that there was significant relationship between private sector credit and economic growth in Nigeria. The study therefore recommends that there should be persistence increase of money supply to Nigerian economy in order to increase the flow of credit to the real sector of the Nigerian economy, financial institutions should distribute more credit to the real sector for productive purposes in order to increase Gross domestic product.
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Katusiime, Lorna. "Private Sector Credit and Inflation Volatility." Economies 6, no. 2 (April 24, 2018): 28. http://dx.doi.org/10.3390/economies6020028.
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Sulaiman, Zaagha Alexander. "Money Supply and Private Sector Funding in Nigeria: A Multi-Variant Study." Asian Finance & Banking Review 4, no. 1 (May 13, 2020): 24–41. http://dx.doi.org/10.46281/asfbr.v4i1.573.
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This study examined the effect of money supply on private sector funding in Nigeria. The purpose of the study was to examine the extent to which monetary policy affect private sector funding in Nigeria. Time series data was sourced from Central Bank of Nigeria Statistical Bulletin from 1985-2018. Credit to private sector, credit to core private sector and credit to small and medium scale enterprises sector was used as dependent variables while narrow money supply, broad money supply, large money supply, private sector demand deposit was used as independent variables. Ordinary Least Square (OLS), Augmented Dickey Fuller Test, Johansen Co-integration test, normalized co-integrating equations, parsimonious vector error correction model and pair-wise causality tests were used to conduct the investigations and analysis. The empirical findings revealed that money supply explains 82.1 percent variation on credit to core private sector, 85.2 percent and 23.4 percent of the variation in credit to private sector and credit to small and medium scale enterprises sector. The study conclude that money supply has significant relationship with credit to private sector, credit to core private sector and credit to small and medium scale enterprises sector. From the findings, the study recommends that Central Bank of Nigeria should induce the variations of the amount of money changes through the nominal interest rates. That the monetary authorities should ensure adequate quantity of money supply that positively affect private sector funding in Nigeria.
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Mensah, Alice Constance, and Ebenezer Okyere. "Monetary Policy and Private Sector Credit Interaction in Ghana." International Journal of Economics and Financial Research, no. 67 (July 15, 2020): 180–91. http://dx.doi.org/10.32861/ijefr.67.180.191.
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Using a series of econometric techniques, the study analysed interaction between monetary policy and private sector credit in Ghana. This study made use of monthly dataset spanning January 1999 to December 2019 of credit to the private sector (PSC) and broad money supply (M2). The results reveal that there exists cointegration, a long run stationary relation between monetary policy and private sector credit. This implies, increases in credit should prompt long-term increases in monetary policy. It is not surprising that growth in the private sector might have a stronger effect on monetary policy. The Error Correction Test is statistically significant and that all the variables demonstrate similar adjustment speeds. This implies that in the short run, both money supply and credit are somewhat equally responsive to their last period’s equilibrium error. There is unidirectional causation from private sector credit to monetary policy. It can be said that, there is an interaction between money supply and private sector credit. Thus, credit to private sector holds great potential in promoting economic growth. It can be recommended to the government to increase the credit flow to the private sector because of its strategic importance in creating and generating growth of the economy.
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Sulaiman, Zaagha Alexander, and Murray Monday Ebike. "Deposit Money Bank Policy and Private Sector Funding: A Multi-Dimensional Study from Nigeria." Australian Finance & Banking Review 4, no. 1 (June 9, 2020): 18–35. http://dx.doi.org/10.46281/afbr.v4i1.600.
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This study empirically examined the effect of deposit money banks policy on private sector funding in Nigeria. Time series data was sourced from Central Bank of Nigeria Statistical Bulletin from 1985-2018. Credit to private sector, credit to core private sector and credit to small and medium scale enterprises was used as dependent variables while liquidity ratio and loan to deposit ratio was used as independent variables. Ordinary Least Square (OLS), Augmented Dickey Fuller Test, Johansen Co-integration test, normalized co-integrating equations, parsimonious vector error correction model and pair-wise causality tests were used to conduct the investigations and analysis. The empirical findings revealed that deposit money banks policy explains 40.8 percent variation on credit to core private sector, 28.1 percent and 58.9 percent of the variation in credit to core private sector and credit to small and medium scale enterprises sector. The study conclude that deposit money banks policy has no significant relationship with credit to private sector and credit to core private sector but has significant relation with credit to small and medium scale enterprises sector. From the findings, the study recommends compliance to deposit money banks policies; this will enhance effective financial intermediation and increase funding of the private sector. There is also need for the regulatory authorities to harmonize the various deposit money banks policies with the objective of enhancing private sector funding. There is need to decentralize the operation of the deposit money banks in the urban cities. Policies should be formulated to extend the operation of the deposit money banks to the rural communities, this will enable the institutions to mobilize much deposit and increase credit to the private sector.
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Hassan, Bello, Evans Osabuohien, Folorunso Ayadi, Jeremiah Ejemeyovwi, and Victoria Okafor. "Driving private sector credit in Nigeria: The role of growth finance." Banks and Bank Systems 17, no. 4 (October 19, 2022): 25–34. http://dx.doi.org/10.21511/bbs.17(4).2022.03.
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There is some level of uncertainty as to whether private sector credit interacts with finance sources for growth to significantly influence channeling funds for investible purposes in Nigeria, given the nation’s unique characteristics. This study examines the role of various sources of growth finance on private sector credit in Nigeria. For this purpose, the study utilizes secondary data (1980–2018) sourced from CBN statistical annual reports. The study further employs the ARDL-Bounds Co-integration test to test out the hypothesis after stationarity testing. The study finds that stock market capitalization had a positive and significant influence on private sector credit compared to remittance inflows and gross domestic savings in the long run among the sources of growth finance indicators. Furthermore, remittance inflows reported a positive but statistically insignificant relationship, while gross domestic savings had a negative and insignificant coefficient. The study concludes that only stock market development inflow transmits to the private sector’s credit at 10 percent among the various growth finance sources.
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Pitonáková, Renáta. "Private Sector Savings." Danube 9, no. 1 (March 1, 2018): 1–17. http://dx.doi.org/10.2478/danb-2018-0001.
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Abstract The majority of household savings are in the form of bank deposits. It is therefore of interest for credit institutions to tailor their deposit policy for getting finances from non-banking entities and to provide the private sector with the loans that are necessary for investment activities and consumption. This paper deals with the determinants of the saving rate of the private sector of Slovakia. Economic, financial and demographic variables influence savings. Growth of income per capita, private disposable income, elderly dependency ratio, real interest rate and inflation have a positive impact on savings, while increases in public savings indicate a crowding out effect. The inflation rate implies precautionary savings, and dependency ratio savings for bequest. There are also implications for governing institutions deciding on the implementation of appropriate fiscal and monetary operations.
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Kaur, Kulpreet, and Rajwant Kaur. "A Comparative Analysis on Deposit and Credit Deployment by Public and Private Sector Banks in India during the Period from 2007 to 2021: An Empirical Evidence." YMER Digital 21, no. 08 (June 12, 2022): 431–59. http://dx.doi.org/10.37896/ymer21.08/39.
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The present paper has been conducted to examine the comparative relationship of two variables namely, deposits and credit deployment of public sector and private sector banks during the period from 2007 to 2021. For analysis purpose, the study has been used secondary data and to analyze it, a number of techniques, namely, mean, standard deviation, coefficient variation, compound annual growth rate and credit-deposit ratio have been used. The study found that the CAGR of total credit of private sector banks is 16.63 percent which is higher than public sector banks which has just only 10.64 percent. The findings of the study reveals that the credit deposit ratio of private sector banks is higher than public sector banks during the study period. On the basis of analysis, the study further found that the private sector banks have highest CAGR in case of the population group where distribution of credit as compared to public sector. Overall, the study found that the performance of private sector banks is better than public sector banks as per given variables during the study period. Therefore, the study recommends a number of constructive measures to public sector banks for the improvement in deposit and credit deployment schemes in the future. Keywords: Banking, Credit, Deposit, Deployment, CAGR, Standard Deviation.
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Shapoval, Yuliia, and Oleksii Shpanel-Yukhta. "Effect of financial deepening on economic growth: Does it encourage income group transition?" Banks and Bank Systems 16, no. 4 (November 22, 2021): 101–13. http://dx.doi.org/10.21511/bbs.16(4).2021.09.
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The rapid growth of financial deepening raises the problem of its effect, beneficial for economic development. This paper aims to demonstrate the relationship between economic growth (GDP per capita growth, GNI per capita) and financial depth (domestic credit to private sector and credit availability) in 142 countries, split into four income groups, over 2000–2020, using correlation analysis and data from the World Bank and the IMF. Besides, a comparative analysis of domestic credit to the private sector, economic freedom, Gini index, total government expenditure and national savings of countries that increased their income group status over 2011–2020 is presented. Financial deepening (increased credit availability and expansion of domestic credit to the private sector) encourages economic growth (via GNI per capita and GDP per capita growth). Although the presence of a nonlinear relationship between economic growth (GDP per capita growth) and financial depth (domestic credit to private sector and credit availability) over 1991–2020 is insufficient, there is a linear relationship between GNI per capita and credit availability, between credit availability and domestic credit to the private sector for the same sample of countries over 2000–2020. Meanwhile, there is a tendency towards a decrease in the correlation between GNI per capita and GDP per capita growth. Given the revealed linear correlation between domestic credit to the private sector and GNI per capita, financial deepening positively impacts income growth, and this dependence strengthens with increasing income levels. Target values of domestic credit to the private sector are proposed for the income group transition. AcknowledgmentThe paper was funded as a part of the “Relationship between financial depth and economic growth in Ukraine” research project (No. 0121U110766), conducted at the State Institution “Institute for Economics and Forecasting of the NAS of Ukraine”.
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Mesagan, Ekundayo, Ndubuisi Olunkwa, and Ismaila Yusuf. "Financial Development and Manufacturing Performance: The Nigerian Case." Studies in Business and Economics 13, no. 1 (April 1, 2018): 97–111. http://dx.doi.org/10.2478/sbe-2018-0009.
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AbstractThe study focused on financial sector development and manufacturing performance in Nigeria over the period of 1981 to 2015. In the study, three indicators such as manufacturing capacity utilization, manufacturing output and manufacturing value added were employed to proxy manufacturing performance while money supply as a percentage of GDP, domestic credit to the private sector and liquidity ratio were employed to proxy financial development. The study observed that credit to the private sector and money supply positively but insignificantly enhanced capacity utilization and output, but negatively impacted value added of the manufacturing sector in the short run. There is slight improvement in the long where both money supply and credit to private sector exert positive impact manufactured output. Hence, it becomes crucial for commercial banks to make available certain percentage of their profits for industrial expansion in order to create linkages between both sectors.
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Innocent, Idachaba Odekina, Olukotun G. Ademola, and Elam Wunako Glory. "Influence of Bank Credits on the Nigerian Economy." American Economic & Social Review 5, no. 1 (March 25, 2019): 1–9. http://dx.doi.org/10.46281/aesr.v5i1.240.
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The aim of this study is to examine the influence of bank credits on the Nigerian economy using time series data covering the period from 1980 to 2017.Gross domestic product was used as proxy for the economy while credits to the private sector, public sector and prime lending rate were used as proxies of Banks credits. Unit root test was used to test stationary which reveals that all the variables were stationary at first difference. The regression analysis result shows that credit to the private sector have positive effect on Nigerian economy while credit to public sector and prime lending rate have negative effect on the Nigerian economy. The result of co-integration test presented reveals that there exist among the variables co-integration which means long-run analysis. It is recommended that, policy makers should focus attention on long-run policies to promote economic growth such as development of modern banking sector, efficient financial market, infrastructures.
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Aftab, Nadeem, Khalil Jebran, Irfan Ullah, and Muhammad Awais. "IMPACT OF INTEREST RATE ON PRIVATE SECTOR CREDIT; EVIDENCE." Jinnah Business Review 04, no. 01 (January 1, 2016): 47–52. http://dx.doi.org/10.53369/ayci1997.
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This study explored the long and short term effect of interest rate on private sector credit on Pakistan for the period of 1975 to 2011. The Stationary of data was analyzed by Augmented Dickey Fuller and Phillips Peron test. This study applied Auto Regressive Distribution Lag (ARDL) model for the purpose of analyzing long and short term relationship. The results revealed significant negative effect of interest rate on private sector credit in the long run, and also in the short run. The results also indicated significant positive effect of inflation on private sector credit in long and short run. However, exchange rate was found to have no effect on private sector credit.
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Chen, Hong, Shamal Chand, and Baljeet Singh. "IMPACT OF REMITTANCES ON PRIVATE SECTOR CREDIT IN THE PACIFIC ISLAND COUNTRIES." Buletin Ekonomi Moneter dan Perbankan 23 (March 20, 2020): 13–32. http://dx.doi.org/10.21098/bemp.v23i0.1215.
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We examine the effect of remittances on private sector credit in the Pacific Islandcountries (PICs) using the data from 58 developing countries from 2004 to 2016. Theanalysis provides strong evidence that the effect of remittance inflows on privatesector credit for PICs is positive and higher than that for other developing countries.In addition, the per capita gross domestic product, official development assistance,the number of bank branches, and institutional quality are also positively associatedwith private sector credit in PICs, while the Consumer Price Index is negativelyassociated with private sector credit. These results have important implications for thedevelopment of financial sector in PICs.
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John Asaleye, Abiola, Joseph Ibrahim Adama, and Joseph Olufemi Ogunjobi. "Financial sector and manufacturing sector performance: evidence from Nigeria." Investment Management and Financial Innovations 15, no. 3 (July 6, 2018): 35–48. http://dx.doi.org/10.21511/imfi.15(3).2018.03.
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Nigerian economy depends on oil as the major source of revenue, failure to diversify the revenue base has raised questions about its sustainability and implication on the economy. This study uses market capitalization, broad money stock, credit to private sector, prime interest rate and deposit liability as proxies for the financial sector, while output in the manufacturing sector and manufacturing employment are used as proxies for manufacturing performance. The study examines the causal effects, shock effect and long-run impact using Granger Non-Causality, Vector Error Correction Model, and Dynamic Ordinary Least Square method, respectively. The results showed unidirectional causality, confirming the hypothesis of the ‘supply-leading view’ and ‘demand-following view’ except for market capitalization and output in the manufacturing sector, where independence was observed. The variance decomposition shows that the forecast error shock of credit to private sector and prime interest rate show more variations in manufacturing sector performance than other financial indicators. The long-run result using output in manufacturing sector as dependent variable shows a positive significant relationship with other financial sector indicators, except for broad money stock and deposit liability. This study recommended credit channel for transmission of monetary policy using interest rate to improve the performance of manufacturing sector, among others.
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AGHABARARI, LEILA, and AHMED ROSTOM. "CREDIT CYCLES IN COUNTRIES IN THE MENA REGION — DO THEY EXIST? DO THEY MATTER?" Global Economy Journal 20, no. 01 (March 2020): 2050001. http://dx.doi.org/10.1142/s2194565920500013.
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This paper estimates the private sector credit cycles for most of the oil-importing and oil-exporting countries in the Middle East and North Africa. Credit cycles are the medium-term component in spectral analysis of real private sector credit growth. Besides, the paper estimates the credit cycles for several developed countries. The analysis finds substantial differences and rare similarities between credit cycles in the Middle East and North Africa and advanced countries. During 1964–2017, credit cycles in the Middle East and North Africa do not appear to be associated with GDP growth. They only explained a fraction of the growth in private sector credit, and they do not seem to be synchronized across oil-exporters and oil-importers.
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E.E., Okwor, Nkama N.O., Agbachi V.O., Aduba P.N., and Ezeoha P.O. "The Impact of Selected Monetary Policy Instruments on Nigerian Banking Industry Credit to the Private Sector, 1981-2021." African Journal of Accounting and Financial Research 5, no. 2 (October 3, 2022): 93–107. http://dx.doi.org/10.52589/ajafr-vtvm7w1a.
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This study examined the impact of selected monetary policy instruments on credit to the private sector in Nigeria. The study applied an auto-regressive distributed lag model (ARDL) for analysis of the data covering the period of 1981 to 2021. Data for the study were collected from the Central Bank of Nigeria (CBN) statistical bulletin. The objectives of the study were to: analyze the impact of monetary policy rate on credit to the private sector in Nigeria, examine the impact of liquidity ratio on the private sector credit in Nigeria. Liquidity ratio (LIQ) had a positive but statistically non-significant impact on credit to the private sector. Monetary policy rate (MPR) had a negative but statistically non-significant impact on credit to the private sector. The study recommends that the government needs to benchmark best practices in monetary policy development from those economies that are more advanced in order to develop better monetary control policies that can improve the performance of the banking industry for rapid economic growth and development.
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Gunes, Erdogan, and Hormoz Movassaghi. "Agricultural Credit Market and Farmers’ Response: A Case Study of Turkey." Turkish Journal of Agriculture - Food Science and Technology 5, no. 1 (January 15, 2017): 84. http://dx.doi.org/10.24925/turjaf.v5i1.84-92.951.
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Agriculture is an important sector in Turkey’s economy. Access to credit financing is critical for timely acquisition of different inputs, farm productivity, and ultimately farmers’ financial well-being. Historically, Ziraat Bank and Agricultural Credit Cooperatives, supported by Turkish government, have been the principle supplier of loanable funds in the agricultural sector. However, since 2000, many private banks have discovered the potential of this market and entered the competition. This study was designed to investigate the structure of the agricultural credit market in Turkey and identify factors that influence farmers’ preference among alternative lenders. It was found that although the 550 Turkish farmers surveyed had several options among lenders, low interest rates and attainable eligibility criteria emerged as the most important differentiators among banks. Results from the Analytic Hierarchy Process (AHP) demonstrate the rising role of private banks’ credit. However, Ziraat Banks’ subsidized credits still dominant and its composite weight is 30.74% of total amount of agricultural credit market.
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Chile, Nzeh Innocent, Benedict I. Uzoechina, Millicent Adanne Eze, Ozoh Joan Nwamaka, and Okoli Uju Victoria. "Shocks to Monetary Policy Instruments: Does Credit to the Private Sector Respond in a Similar Manner to Public Sector Credit in Nigeria? A Vector Autoregressive Approach." Asian Journal of Economics and Empirical Research 9, no. 1 (March 24, 2022): 38–51. http://dx.doi.org/10.20448/ajeer.v9i1.3803.
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This paper aims to investigate the response of private and public sector credit to shocks in monetary policy instruments with a view to ascertaining if the responses differ. The study utilized the vector autoregressive (VAR) model with monthly data covering the period from 2010M1 to 2021M8. Findings show that credit to private sector responds positively to shocks in money supply and monetary policy rate (MPR) in all periods. However, the response to cash reserve requirement (CRR) was negative beginning from period five, and it also responded negatively to foreign interest rate shock. On the other hand, credit to government was found to respond positively to shocks in money supply up to period two and CRR in all the periods, but it responded negatively to MPR starting from period three. The results of the variance decomposition show that other than shocks to itself, which was 100% in the first period, shocks to other variables influence private sector credit. Also, other than shocks to itself, which was 99.89% in the first period, shocks to other variables lead to shocks to credit to government. We therefore recommend that policies used to influence financial intermediation should factor in the sensitivity of both public and private sectors to these policy instruments and the impact of exogenous shocks should be factored into policy formulation.
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SANDLERIS, GUIDO. "Sovereign Defaults, Credit to the Private Sector, and Domestic Credit Market Institutions." Journal of Money, Credit and Banking 46, no. 2-3 (March 2014): 321–45. http://dx.doi.org/10.1111/jmcb.12108.
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Putra, Hari Setia, Shaghi Ratu Sa’bani, Syifa Ananda, and Ullya Vidriza. "PERAN PERKEMBANGAN SEKTOR KEUANGAN TERHADAP INDUSTRIALISASI DI INDONESIA." Jurnal Dinamika Ekonomi Pembangunan 4, no. 2 (July 28, 2021): 502–9. http://dx.doi.org/10.33005/jdep.v4i2.308.
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The aim of this research is to analyze the impact of financial development in industrialization in Indonesia for the period 1990 to 2019 using time series data. The data used are ratio of broad money to GDP, ratio of domestic credit to private sector to GDP, and interest rate spread. The results of the pairwise granger causality test in the VECM analysis phase prove that there is a one-way relationship beetwen domestic credit to private sector ratio with broad money ratio and broad money ratio with interest spread rate. Meanwhile, the interest spread rate and domestic credit to private sector ratio have a two-way relationship. Impulse response results show that the industry value added ratio responds most to interest spread rate shocks compared to other variables. Variance decomposition results show that the contribution given by interest spread rate to the industry value added ratio is relatively the largest compared to the contribution given by broad money ratio and domestic credit to private sector ratio.
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Akber, Nusrat, Megha Gupta, and Kirtti Ranjan Paltasingh. "The Crowding-in/ out Debate in Investments in India: Fresh Evidence from NARDL Application." South Asian Journal of Macroeconomics and Public Finance 9, no. 2 (August 23, 2020): 167–89. http://dx.doi.org/10.1177/2277978720942676.
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The purpose of the study is to re-examine the issue of the crowding-in/out effect of public investment on private investment by adopting an improved methodology of the ‘nonlinear autoregressive distributive lag’ (NARDL) model. Taking data from 1970 to 2016, the study finds that public investment crowds-in private investment both in the long-run as well as the short-run. However, the short-run elasticity is statistically more significant and larger in magnitude than the long-run elasticity. It has also been found that macroeconomic uncertainty significantly affects private investment both in the long-run and the short-run. Among other determinants of private investment, we observe foreign direct investment (FDI) inflow, credit flow to the private sector, household savings, real rate of interest and expected output affect private investment significantly. The policy implication of the study calls for the designing of public sector policies that enthuse more private investments. More credit flow to private sectors and FDI in different sectors of the economy should be prioritized. JEL Codes: E22, H54, C32
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Akpan, Ofonime Moses, Ubong Edem Effiong, and Idongesit Justin Ukere. "Impact of Treasury Bill on Private Sector Credit in Nigeria." Research in Social Sciences 5, no. 1 (August 30, 2022): 30–42. http://dx.doi.org/10.53935/26415305.v5i1.229.
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In this study, the effect of treasury bills on private sector credit in Nigeria using annual data from 1981 to 2018 was examined. The specific objectives of the study were to examine the impact of treasury bills and treasury bill rate on private credit. Treasury bills was disaggregated into its various components and used as explanatory variables along with other essential macroeconomic variables. The study was conducted in the light of the crowding out effect hypothesis. The behavior of variables was captured in an autoregressive distributed lag (ARDL) model. The result of the estimated model shows that treasury bills held by commercial banks, treasury bills held by the public and treasury bill rate has significant negative effect on credit to private sector, showing that treasury bills have a crowding out effect on private sector credit. It is recommended that treasury bill rate should be set to align with other rate of return on short term financial asset in the financial system to allow for fair competition between public sector and private sector debt instrument and thus limit the crowding out effect and that the issuing of treasury bills should be justified with the existence of excess liquidity in the financial system.
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Jannah, Rauzatul, Taufiq Carnegie Dawood, Rustam Effendi, Muhammad Ilhamsyah Siregar, Muhammad Abrar, and Cut Zakia Rizki. "PENGARUH KREDIT BANK KEPADA SEKTOR SWASTA, KREDIT BANK KEPADA SEKTOR PEMERINTAH, SERTA KURS TERHADAP NERACA TRANSAKSI BERJALAN DI NEGARA-NEGARA ASEAN." Jurnal Ekonomi dan Kebijakan Publik Indonesia 9, no. 1 (October 18, 2022): 20–34. http://dx.doi.org/10.24815/ekapi.v9i1.26166.
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This study aims to examine the effect of bank credit for the government sector, bank credit for the private sector, and exchange rate on current account balance in ASEAN countries. This type of research is a quantitative descriptive study with the Random Effect EGLS panel data method. The data used are secondary data, obtained from the World Bank, FRED, and CEIC from 1990-2019. The results of this study indicate that exchange rate have a positive and significant effect on current account balance in ASEAN countries. Similarly, bank credit for the government sector, have a positive and significant effect on the current account balance. In addition, private sector bank credit, have a positive impact on the current account balance.
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Yaseen, Hadeel, and Ghassan Omet. "Financial development in Jordan: Where do remittances play a role in bank credit?" Accounting 7, no. 7 (2021): 1701–8. http://dx.doi.org/10.5267/j.ac.2021.4.028.
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The Jordanian economy has been a recipient of huge amounts of remittances. Indeed, for more than a decade now, the inflow of this capital has been fluctuating around 10 percent of Gross Domestic Product (GDP). Within this context, the subject matter of remittances has resulted in the development of a myriad of research issues. One of these issues is the impact of remittances on financial development or bank credit to the private sector. This paper looks at the relationship between financial development and remittances in the Jordanian context. Based on the time period 1992-2019, and time series econometric techniques (co-integration and vector auto-regression, among others), this paper examines the impact of remittances on bank credit to the private sector, and on its main sectoral distributions. The estimated results reveal some interesting findings. There is no long-run stable relationship between bank credit to the private sector and remittances. However, there is a stable long-run relationship between credit to individuals (households) and remittances, and between credit to the construction sector and remittances. These conclusions imply that remittances, on average, promote private consumption in general, and residential spending.
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Kolaib, Anmar Ghalib, and Mufeed D. Y. Almula-Dhanoon. "Impact of Enabling Environment Drivers on Public-Private Partnership investment in the Transport Sector." Tikrit Journal of Administrative and Economic Sciences 18, no. 58, 1 (June 30, 2022): 406–23. http://dx.doi.org/10.25130/tjaes.18.58.1.22.
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The research aims to analyze the impact of some drivers of the enabling environment, represented by the macroeconomic stability index (GDP, inflation, foreign exchange reserves and the ratio of debt reserves to short-term foreign exchange). And the financial market stability index (the amount of credit provided to private sectors, value of shares traded) on public-private partnerships in financing infrastructure in the transport sector for selected countries. The drivers of the enabling environment in general are considered one of the main pillars in the process of partnership between the public and private sectors. And the tangible results of the partnership between the public and private sectors that affect the daily lives of individuals have a clear impact on the economic construction of countries that seek advancement and development in all directions. On the other hand, there is an urgent need to increase the volume of financing infrastructure projects, as a result of the widening gap between the demand for infrastructure and the shortfall in the volume of supply that corresponds to it. Which requires the public sector to move towards partnership with the private sector, which has capabilities and efficiency in implementation and management. The research adopted the ARDL model to perform the regression, using longitudinal data for a group of selected countries (Brazil, Colombia, India, Mexico, Peru, Philippines, China) for the period (2000-2020). It was found that the flexibility of participatory investment in relation to changes in the gross domestic product, the inflation rate, the percentage of credit granted to the private sector, and the value of traded shares was high, while there was no significant effect of foreign exchange reserves and the ratio of short-term debt-to-foreign exchange reserves on investment. Participatory. On the other hand, it was found that the impact of GDP, the percentage of credit granted to the private sector and the value of traded shares were positive, while the effect of inflation was negative.
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Chen, Hong, and Baljeet Singh. "Output impacts of the interaction between foreign direct investment and domestic credit." Studies in Economics and Finance 34, no. 3 (August 7, 2017): 331–43. http://dx.doi.org/10.1108/sef-02-2016-0044.
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Purpose This paper aims to examine the link among foreign direct investment (FDI), domestic credit expansion and economic growth for six Pacific Island countries. Design/methodology/approach Using panel data over 1982-2011, the authors relate the interaction between domestic credit to private sector and FDI to its impacts on output. This study makes use of panel cointegration and the generalized method of moments estimators. Findings The empirical results generally show that FDI and domestic credit to private sector serve as substitutes to promote output in these small economies. Such findings are robust to a number of sensitivity tests. Originality/value This study contributes to the literature by examining the interaction between domestic credit to private sector and FDI and its impact on output in small Pacific Island economies.
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Arteta, Carlos, and Galina Hale. "Sovereign Debt Crises and Credit to the Private Sector." International Finance Discussion Paper 2006, no. 878 (November 2006): 1–41. http://dx.doi.org/10.17016/ifdp.2006.878.
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Arteta, Carlos, and Galina Hale. "Sovereign debt crises and credit to the private sector." Journal of International Economics 74, no. 1 (January 2008): 53–69. http://dx.doi.org/10.1016/j.jinteco.2007.05.008.
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Muhammad Umair Ali, Saliha Gul Abbasi, Mazhar Abbas, and Ghulam Dastgeer. "Impact of Infaltion, Exchange Rate and Interest Rate on the Private Sector Credit of Pakistan." Journal of Accounting and Finance in Emerging Economies 6, no. 4 (December 4, 2020): 1133–38. http://dx.doi.org/10.26710/jafee.v6i4.1477.
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The paper analyzed the long-term and short-term impact of interest rate, exchange rate and inflation on the private sector credit of Pakistan during the period from 1975 to 2018. To test the stationarity of data Augmented Dick Fuller (ADF) Test was applied. While the main model to explore the long-term and short-term dependence was based on Auto Regressive Distribution Lag (ARDL) Model. The results suggested no effect of exchange rate on private sector credit, while inflation has significant as well as positive impact on Private Sector Credit (PSC) in long as well as short run. Lastly, the most important dependence i.e. interest effect on PSC; depicted negative impact in both short and long term.
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Liu, Zheng, Pengfei Wang, and Zhiwei Xu. "Interest Rate Liberalization and Capital Misallocations." American Economic Journal: Macroeconomics 13, no. 2 (April 1, 2021): 373–419. http://dx.doi.org/10.1257/mac.20180045.
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We study the consequences of interest rate liberalization in a two-sector general equilibrium model of China. The model captures a key feature of China’s distorted financial system: state-owned enterprises (SOEs) have greater incentive to expand production and easier access to credit than private firms. In this second-best environment, interest rate liberalization can improve capital allocations within each sector but can also exacerbate misallocations across sectors. Under calibrated parameters, the liberalization policy can reduce aggregate productivity and welfare unless other policy reforms are also implemented to alleviate SOEs’ distorted incentives or improve private firms’ credit access. (JEL E43, E44, G32, L32, P24, P31, P34)
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Youssef, Amel Ben. "Migration Analysis of Credit Risk in Tunisian Banking Sector." Indian Journal of Finance and Banking 2, no. 1 (March 9, 2018): 34–43. http://dx.doi.org/10.46281/ijfb.v2i1.91.
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In this paper, credit migration matrices are built to measuretransition probabilitiesat Tunisian credit institutions, allowing a comparison of credit risk quality shiftsfor public banks, private banks and leasing companies. We proposeto apply estimating Markov transition matrices using proportions data in order to be adapted to the scarcity of individual dataonloan quality transitions. We employ annual classification of assets issued in theregistration documents and annual financial reports during 2003-2014 period.It’s found from the analysis that the risk grade 2 has the greater tendancy to be downgraded than to be upgraded in public banks and in leasing companies.For the other risk grade 3, the upgradation in the category is higher than the downgradation in all cases. The resultsindicate that the public banks are the riskiest credit institution in Tunisia and there is a lack of rigor in loan classification inpublic and private banks. The findings are useful and critical for supervisory purposes and foroptimizing bank credit risk management.
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Ozsahin, Serife, and Dogan Uysal. "Financial Deepening and Economic Development in MENA Countries: Empirical Evidence from the Advanced Panel Method." International Journal of Economics and Finance 9, no. 4 (March 20, 2017): 152. http://dx.doi.org/10.5539/ijef.v9n4p152.
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This study analyses the effect of financial deepening on economic development in 12 MENA countries for the period between 2000 and 2014. Using three financial deepening indicators which are widely used in the literature, an econometric analysis was conducted through co-integration and estimation methods which take cross-sectional dependence into account. A long-term relationship between variables was revealed with Westerlund (2008) Durbin-Hausman panel co-integration test, and then, long-term coefficients were obtained using Pesaran (2006) CCE (Common Correlated Errors) estimator. Empirical findings point to a positive relationship between financial deepening indicators - domestic credit to private sector, domestic credit provided by private sector, and liquid liabilities of the financial system ratio – and economic development. With this study, it was shown that the domestic credit to private sector causes economic growth for five countries, domestic credit provided by financial sector causes economic growth for one country, and liquid liabilities of the financial system causes economic growth for four countries.
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K.C, Fatta Bahadur, and Indra Kumar Kattel. "Comparative Study on Credit Monitoring Practices in Slected Banks of Nepal." Australian Finance & Banking Review 1, no. 1 (October 14, 2017): 14–25. http://dx.doi.org/10.46281/afbr.v1i1.71.
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Credit monitoring is performed by the banks as post approval activities for existing credit clients to indentify the early warning single of credit risk. So that, the study was accomplish to observe the credit monitoring practice in Nepalese commercial banks. The study was based on a sample of 10 commercial banks, comprising 5 private sector banks and 5 joint venture banks. This paper attempts to determine the awareness of Nepalese bankers about the significance of credit monitoring as risk identification tools. The result of the study indicates that the periodically review of the security documents, credit processing procedure, compliance of covenants setup during credit approval, technique to control default, risk reporting, review of loan account and regular follow-up were differently used as credit monitoring practice in private sector and joint venture banks in Nepal. These factors also found significant predictor for credit monitoring. Moreover, there was a positive relationship between credit monitoring practice and its factors instead of technique to control default.Credit monitoring is performed by the banks as post approval activities for existing credit clients to indentify the early warning single of credit risk. So that, the study was accomplish to observe the credit monitoring practice in Nepalese commercial banks. The study was based on a sample of 10 commercial banks, comprising 5 private sector banks and 5 joint venture banks. This paper attempts to determine the awareness of Nepalese bankers about the significance of credit monitoring as risk identification tools. The result of the study indicates that the periodically review of the security documents, credit processing procedure, compliance of covenants setup during credit approval, technique to control default, risk reporting, review of loan account and regular follow-up were differently used as credit monitoring practice in private sector and joint venture banks in Nepal. These factors also found significant predictor for credit monitoring. Moreover, there was a positive relationship between credit monitoring practice and its factors instead of technique to control default.
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Ohnsorge, Franziska, and Shu Yu. "Recent Credit Surge in Historical Context." Journal of International Commerce, Economics and Policy 08, no. 01 (February 2017): 1750003. http://dx.doi.org/10.1142/s179399331750003x.
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Benign financing conditions since the global financial crisis and, more recently, rising financing needs have fueled a rapid increase in credit to the nonfinancial private sector, especially to the corporate sector in emerging markets and developing economies (EMDEs). In this paper, we first compare post-crisis credit booms with pre-crisis episodes of credit booms and document some distinctive features of post-crisis credit booms. We find that, credit booms in commodity-importing EMDEs in the immediate wake of the global financial crisis have subsided since 2012 but have left a legacy of credit to the nonfinancial private sector that has been considerably higher than in previous credit booms. In contrast, since 2014, credit growth in several commodity-exporting EMDEs has been near the pace observed in past credit booms. We then benchmark current credit-to-gross domestic product (GDP) ratios against thresholds identified in the literature as early warning indicators. Most EMDEs are still some distance away from those thresholds. However, since recent credit booms have not been accompanied by investment surges/booms, GDP growth may contract more when credit booms unwind.
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Brahmaiah, Bezawada. "Credit Risk Management Practices of Indian Banking Industry: An Empirical Study." International Journal of Economics and Financial Issues 12, no. 2 (March 14, 2022): 67–71. http://dx.doi.org/10.32479/ijefi.12968.
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The primary objective of this paper is to examine the risk management techniques and practices of credit risk management followed by Indian commercial banks for the period from 2021-17 to 2020-21. The other objective is to compare risk management practices followed by the public sector banks (PSBs) and private sector of banks (PVBs). The study uses a sample of twelve banks consisting of six largest public sector banks (PSBs) and six largest private sector banks (PVBs) for the study. The sample accounts for 78 per cent of the banking business of the country. The study finds that the scheduled commercial banks (SCBs) are facing credit risk, market risk and operational risk. The study finds that the credit risk management process and practices include risk identification, risk assessment, risk analysis, risk evaluation, risk monitoring and risk control. The study finds that private sector banks (PVBs) have better credit risk management practices as compared to that of public sector banks (PSBs). The PSBs have more NPAs than PVBs whereas PVBs have better asset quality and better profitability ratios than PSBs during the study period.
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Gupta, Poonam, Kalpana Kochhar, and Sanjaya Panth. "Bank ownership and the effects of financial liberalization: evidence from India." Indian Growth and Development Review 8, no. 1 (April 13, 2015): 109–38. http://dx.doi.org/10.1108/igdr-08-2014-0028.
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Purpose – This paper aims to analyze, using the bank-level data for India from 1991-2007, the effect of financial sector liberalization on the availability of credit to the private sector. The authors specifically ask whether public and private banks deployed resources freed up by reduced state preemption to increase credit to the private sector. Design/methodology/approach – The authors use bank-level data for India from 1991-2007 and difference in difference estimates to analyze how state ownership of banks affected the allocation of credit to the private sector post liberalization, and additionally how the size of fiscal deficit affected this allocation. Findings – The authors find that post liberalization, public banks continued to allocate a larger share of their assets to government securities, or held more cash, than private banks. Crucially, public banks allocated more resources to hold government securities when fiscal deficit was high. The authors rule out profit maximization, need to hold safer assets or the lack of demand for private credit as the possible reasons for the preference of the public banks to hold government securities. The authors suggest that moral suasion or “laziness” is consistent with this behavior. Originality/value – Our findings suggest that in developing countries, with fewer alternative channels of financing, government ownership of banks, combined with high fiscal deficit, may limit the gains from financial liberalization.
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Onuka, Onwuka Ifeanyi, and Nwadiubu Anthony Odinakachukwu. "Does Financial Liberalization Lead to Poverty Alleviation? New Evidence from Nigeria." Journal of Business Theory and Practice 8, no. 3 (August 6, 2020): p22. http://dx.doi.org/10.22158/jbtp.v8n3p22.
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The study examined anew the empirical question of whether financial liberalization induces poverty alleviation. There is a theoretical expectation that liberalizing the financial market will lead to greater savings mobilization, greater access to credit facilities and poverty alleviation. Using a time-series data spanning 38 years (1980-2018), the study analyzed the effect of financial liberalization on credit availability to the private sector, the manufacturing sector especially the small & medium enterprises and the agricultural sector in Nigeria. The Bounds testing approach to co-integration employed within the framework of Autoregressive Distributed Lag model (ARDL) was used to generate the coefficients. The coefficient of financial liberalization-though positive in all the parameter estimates, it is not significant. This lead us to the conclusion that despite the advantages of financial liberalization, its benefits is yet to bring about significant positive increases or changes in the volume of credit to the private sector and in poverty alleviation. Inferring upon this, we deduced that the continued liberalization of the financial system though indicating a positive long run impact on financial widening (or financial deepening as the case may be), its manifestation on quantum of credit to the private sector and on poverty alleviation is yet to be realized in Nigeria. The study recommended, amongst others, that government should re-think and re-tool the process in ways that will generate stability in the financial system and unleash the potentials of the process to generate greater savings and ultimately greater investment in the real sectors of the economy.
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Ekong, Christopher Nyong, and Uduak Michael Ekong. "MONETARY POLICY AND INDUSTRIAL SECTOR PERFORMANCE IN NIGERIA: MEASURING THE EXTENDED IMPACT ON THE ECONOMY." JOURNAL OF APPLIED FINANCIAL ECONOMETRICS 3, no. 1 (2022): 97–131. http://dx.doi.org/10.47509/jafe.2022.v03i01.06.
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The study empirically investigates the impact of monetary policy shocks on the performance of the industrial sector in Nigeria, and how this affect the general growth performance of the economy in the periods 1980-2018. Monetary policy variables used were money supply (M2t), monetary policy rate (Mprt), Treasury bill rate (Tbrt) and Credit to the private real sector (Credt). We also gauged the system with other control variables like gross fixed capital formation (gcft), inflation (????t) and exchange rate (exr). Utilizing Vector Autoregression (VAR) and Generalized Method of Moments (GMM), we found that any unanticipated shock on monetary policy rate and money supply growth will produce falling impact on industrial sector output that is consistent with no sign of convergence throughout the period. However, shocks to credit supply and treasury bill rate produces positive growth outliers at different magnitudes in the industrial sector. We also found statistically significant pass-through effect of monetary policy from the industrial sector to the general economy of at least 30 percent growth effect. A number of possible policy menu capable of deepening monetary policy-industrial performance nexus in Nigeria in years following the study have been prescribed in the studyincluding improved stock market development, bond market development and other credit channels that easily linked policy to the private sector for seamless policy transmission.
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Salehi-Isfahani, Djavad. "The Political Economy of Credit Subsidy in Iran, 1973–1978." International Journal of Middle East Studies 21, no. 3 (August 1989): 359–79. http://dx.doi.org/10.1017/s0020743800032554.
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During the last decade of the Pahlavi rule in Iran, rising oil income financed a very extensive development program in which both the state and the private sector accumulated huge amounts of wealth in real and financial capital. Having no direct access to the oil riches, the private sector accumulated much of its new wealth by direct and indirect subsidies from the government. Through various mechanisms, the state channeled resources to the private sector in an attempt to foster capitalist development of the country. While the strategy was successful insofar as it resulted in massive investment by the private sector, it was not without its ill side effects. This article is a study of the consequences, both intended and unintended, of one specific conduit for resource transfer—credit subsidy.
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Chisasa, Joseph, and Daniel Makina. "Trends In Credit To Smallholder Farmers In South Africa." International Business & Economics Research Journal (IBER) 11, no. 7 (July 5, 2012): 771. http://dx.doi.org/10.19030/iber.v11i7.7064.
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Access to credit for smallholder farmers remains a challenge in most developing countries. This paper examines the trend and pattern of bank credit to smallholder farmers in South Africa, both before and after the attainment of democratic government. The analysis of the trend and pattern of bank credit to smallholder farmers was conducted within the confines of the same agricultural sector, across all economy sectors and in relation to GDP. Our analyses show that bank credit to smallholder farmers is (and continues to be) a small fraction of total credit to the private sector and is a very small proportion of GDP. The smallholder farmer sector is observed to face the same constraints to credit as SMEs, a category of enterprises to which they also belong. In light of the importance of agriculture, in general, and smallholder farmers, in particular, to South Africas poverty alleviation and food security drive, our results have important policy implications.
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Yusuff, Mulkat Ajibola, and Fatimah Olabisi Olaniran-Akinyele. "Financial Deepening And Financial Performance Of Deposit Money Banks In Nigeria." Advances in Social Sciences Research Journal 6, no. 11 (November 17, 2019): 179–91. http://dx.doi.org/10.14738/assrj.611.7351.
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This study examines the effect of financial deepening on financial performance of Nigerian Deposit Money Banks using time-series data spanning 1990Q1-2017Q4. The financial performance is expressed by return on assets (ROA) and return on equity (ROE) with total bank liability, private sector credit and market capitalization as measure of financial deepening. The technique of analysis deployed is autoregressive distributed lag (ARDL) to co integration. The findings show that the effect of total bank liability is positive and significant. Market capitalization and private sector credit on the other hand exert negative and significant effect. The study concludes that financial deepening affect financial performance of Deposit Money Banks in Nigeria. It then recommends effective loan recovery strategy to mitigate the negative influence of private sector credit due to non-performing loans.
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Ngimanang, Victalice Achamoh, and Ibrahim Ngouhouo. "Does Financial Liberalization and Investment Rate Affect Financial Development in Cameroon?" International Journal of Economics and Finance 8, no. 2 (January 24, 2016): 136. http://dx.doi.org/10.5539/ijef.v8n2p136.
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This study investigates the key determining factors of financial development using Cameroons time series data from 1977 to 2010. After over-viewing the financial market and financial development in Cameroon and exploring some relevant literature, the study specifies and estimates long- and short-run functions for financial development using co-integration and error correction techniques. Financial liberalization, Gross investment rate, GDP growth rate, inflation rate and government spending appear to significantly influence the level of credit to the private sector in Cameroon. Gross investment rate significantly promotes financial development in the long- and short run whereas financial liberalization significantly contributes to private credit only in the short run. These results suggest that the efficiency of the financial sector in allocating credit to the private sector could be enhanced by encouraging gross investment in the short and long run and equally by liberalising the financial sector in the short run.
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Chebet, Sarah, and Peter W. Muriu. "Factors Influencing The Demand For Credit By The Private Sector In Kenya." European Scientific Journal, ESJ 12, no. 16 (June 28, 2016): 390. http://dx.doi.org/10.19044/esj.2016.v12n16p390.
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This study investigates the effects of selected macroeconomic variables on the Demand for credit by the private sector in Kenya. The study used annual time series data for the period 1980-2012. Data was obtained from Kenya National Bureau of Statistics, World Development Indicators and supplemented by Central Bank of Kenya. Using Vector Error Correction Model (VECM) methodology, the study established that; Public investment, Short term interest rate, Long term interest rate, Employment and Domestic debt have a positive effect on demand for credit by the private sector, while per capita GDP and Exchange rate have a negative effect. The policy implication of these results is that providing sound economic growth policies, a stable macroeconomic situation, policies leading to lower credit cost and greater financial liberalization would simultaneously boost lending and lower the risk of lending to the private sector.
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Said, Radwa Radwan. "A Quantitative Assessment of the Role of the Private Sector in Economic Diversification in UAE." Research in Applied Economics 11, no. 4 (December 20, 2019): 23. http://dx.doi.org/10.5296/rae.v11i4.16119.
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The United Arab Emirates (UAE) has often been addressed as a success case in the GCC region due to its implemented policies that spurred growth and development with a market-friendly approach. This study aims to investigate the relationship between economic diversification and private sector development. For this, we employed an ARDL con-integration method to check the long run as well as short run relationship between variables. We found that the domestic credit to private sector has a positive relationship with diversification index. Also, domestic credit to private sector (DCPS) percentage of GDP has both short and long run relationship with economic diversification index. The results indicate that the domestic credit to private sector will promote the economic diversification in both the short and long runs. Moreover, the government infrastructure will also promote economic diversification in the long run but not in the short run. The trade openness has a negative impact on economic diversification in the long run, but it has a positive impact in the short run.
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Qayyum, Abdul. "Demand for Bank Lending by the Private Business Sector in Pakistan." Pakistan Development Review 41, no. 2 (June 1, 2002): 149–59. http://dx.doi.org/10.30541/v41i2pp.149-159.
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This study estimates the demand for bank lending by the private business sector in Pakistan. For the purpose of analysis a three-step methodology is applied, that is, univariate analysis, multivariate cointegration analysis, and error correction mechanism. It is found that the individual series are difference stationary, and there is a long-run stable relationship between the variables. The preferred model, obtained by the application of the general-to-specific methodology is also found to be stable throughout the study period. The study shows that the output of business sector is an important determinant of the demand for bank credit in Pakistan, implying that to achieve the objective of monetary policy the behaviour of the output of business sector must not be ignored. Furthermore, the study shows that the rate of interest on bank advances is an important determinant of the demand of credit by the business sector. It implies that monetary authorities can move the flow of bank credit to the private sector while changing the interest rate charged on bank lending. The analysis has important implications: a tight monetary policy implies a high rate of real interest; a high rate of interest on bank lending negatively affects the demand for bank credit by the business sector (and the investment), which in turn leads to low aggregate demand and lower output. That is what has happened in Pakistan in the last decade.
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E.S., Oyakegha, and Arepo L.A. "Monetary Policy and Private Sector Performance in Nigeria (1995-2020)." African Journal of Accounting and Financial Research 5, no. 1 (February 22, 2022): 35–44. http://dx.doi.org/10.52589/ajafr-v2hinpoa.
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The study examines the impact of monetary policy on private sector performance in Nigeria; for the period 1995-2019. Secondary data were used and collected from the Central Bank of Nigeria Statistical Bulletin. The study used Private Sector Output is proxy for Private Sector performance and employed as the dependent variable; whereas, broad money supply, liquidity rate and Credit Ratio respectively were used as the explanatory variables to measure monetary policy. Hypotheses were formulated and tested using time series econometric techniques. The study revealed a significant effect of credit ratio on private sector output in Nigeria. Liquidity ratio had a significant effect on private sector output in Nigeria. Broad money supply had a significant effect on private sector output in Nigeria. Hence, there is a long-run equilibrium effect on monetary policy and the private sector economy in Nigeria; and, the result confirms that about 73% short-run adjustment speed from long-run disequilibrium. The coefficient of determination indicated that about 65% of the variations in private sector led- economy can be explained by changes in monetary policy variables. The study concluded that monetary policy had impacted significantly on private sector growth in Nigeria. The study recommended that strong macroeconomic policies should be employed to maintain and stabilize the economy. CBN should lay down strict prudential guidelines to stabilize and strengthen the private sector led-economy. Government and policy makers should formulate policies that will increase the flow of investable funds and improves the capacity of private economy.
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Zaheer, Sajjad, Fatima Khaliq, and Muhammad Rafiq. "Does Government Borrowing Crowd out Private Sector Credit in Pakistan." Journal of Finance & Economics Research 4, no. 2 (June 2019): 30–41. http://dx.doi.org/10.20547/jfer1904203.
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Brown, Christopher, and John Viar. "Centralized Private Sector Planning and the allocation of Automobile Credit." Journal of Economic Issues 24, no. 2 (June 1990): 597–604. http://dx.doi.org/10.1080/00213624.1990.11505058.
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Ozili, Peterson K. "Comparing Digital Finance in the UK, US, India and Nigeria." Financial Internet Quarterly 16, no. 4 (December 1, 2020): 1–11. http://dx.doi.org/10.2478/fiqf-2020-0023.
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Abstract This paper examines digital finance usage in the UK, US, India and Nigeria. Using data from the global financial development indicators, the findings reveal that the UK and US have higher digital finance usage than India and Nigeria. The US has higher credit card usage compared to the UK while the UK has higher debit card usage compared to the US. Also, Nigeria has higher debit card usage than India. The findings also show that higher debit card usage is correlated with higher domestic credit to the private sector in the US and Nigeria. Higher credit card usage is correlated with lower domestic credit to the private sector, lower private credit by deposit money banks, and fewer remittances to the UK. The implication of the findings is that policy makers in developing countries should develop the digital finance and payment systems in their countries to close up the wide gap in digital finance adoption between developing and developed countries.
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Sahai, Seema, Rupamanjari Sinha Ray, and S. K. Tapasvi. "Why Private Sector Led Financial Inclusion Cannot Work for Development? Case of Micro Credit in India." Indian Journal of Finance and Banking 4, no. 1 (February 18, 2020): 14–19. http://dx.doi.org/10.46281/ijfb.v4i1.482.
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This paper analyzes the potential of the private sector-led micro-credit business to impact poverty. Despite the financial and policy support by donor agencies and multilateral agencies microcredit has not been able to create a positive impact on household income. The study concludes that the credit policy of private sector providers is not designed to create a substantial impact. Microcredit is a business model for doing business with the poor. All aspects of a credit policy including selection criteria, appraisal process, and product offered, and loan amount serves the interest of the lender and not that of the client.