To see the other types of publications on this topic, follow the link: Problem loan management.
Journal articles on the topic 'Problem loan management'
Create a spot-on reference in APA, MLA, Chicago, Harvard, and other styles
Consult the top 50 journal articles for your research on the topic 'Problem loan management.'
Next to every source in the list of references, there is an 'Add to bibliography' button. Press on it, and we will generate automatically the bibliographic reference to the chosen work in the citation style you need: APA, MLA, Harvard, Chicago, Vancouver, etc.
You can also download the full text of the academic publication as pdf and read online its abstract whenever available in the metadata.
Browse journal articles on a wide variety of disciplines and organise your bibliography correctly.
1
Chein, Andy. "The impact of problem loan, ownership structure, and market structure upon the bank performance." Corporate Ownership and Control 6, no. 4 (2009): 78–82. http://dx.doi.org/10.22495/cocv6i4p7.
Full textAbstract:
Some research on the causes of bank failure finds that failing institutions had large proportions of problem loans prior to failure, and that the extra costs of administering these loans reduced the bank performance. At this moment, if bank management goes after maximizing one’s utility, not the bank performance, in addition confronting from rising competitive environment, it would be quite dangerous. So, this article studies the impact of problem loan, ownership structure, and market structure upon the bank performance with the basis of cost efficiency. Empirical results show that problem loan, ownership structure, and market structure have a significant effect upon the bank performance
2
Rakhimzhanova, Kalamkas, Serik Makysh, Botagoz Saparova, and Baurzhan Iskakov. "Problem loan management in the countries of the Eurasian Economic Union." Entrepreneurship and Sustainability Issues 7, no. 4 (June 1, 2020): 3286–308. http://dx.doi.org/10.9770/jesi.2020.7.4(47).
Full text
3
Wahyudiono, Bambang. "HUBUNGAN ANTARA LIKUIDITAS, PENDANAAN DENGAN MANAJEMEN PERKREDITAN KSP DANATAMA JAKARTA." JIMFE (Jurnal Ilmiah Manajemen Fakultas Ekonomi) 4, no. 2 (June 9, 2019): 113–24. http://dx.doi.org/10.34203/jimfe.v4i2.1174.
Full textAbstract:
Research have been done based on KSP management and KSP performance. Problem loan increased in some KSP. The study proposed to further explore why this condition happened by analysis relationship between performance loan management, liquidity and funding. Research result presents liquidity rate of entity 68,81% as expected, funding rate 64,23% as expected and Loan management rate of the entity is 65,05% as expected. Result of result also present that the rate of three variables still under value as expected (more than 80%) thatswhy still need to be improve. Correlation rate between liquidity and loan management is 0,212, determination coefficient is 0,0449 or giving impact more or less than 4,49%. There is no correlation between Funding and loan management (rate is -0,0276). T-calculate is less than T-table. Correlation rate between liquidity, funding and loan management simultaneously is 0,093. This shows that liquidity factor together with funding factor giving impact to loan management more significant than partially. Impact of the two variables is 9,3%. As a result, to increase loan management rate will be more effective if increasing liquidity rate and funding rate to be implemented together other than partially instead.
4
Burrell, Darrell N., Jorja B. Wright, Mindy Perot, Delores Springs, Shanel Lu, Amalisha Sabie Aridi, Kimya Nuru Dennis, Rajanique Modeste, and Darrell Ezell. "Financial Management Education Courses as Social Societal Learning Tools at Minority-Serving Colleges and Universities." International Journal of Public Sociology and Sociotherapy 1, no. 1 (January 2021): 39–57. http://dx.doi.org/10.4018/ijpss.2021010104.
Full textAbstract:
A 2016 article in the Nation outlined that in the United States the average Black family would need 228 years to build comparable wealth to the average white family. Today, achieving the dream of higher education has posed many threats to the Hispanic and African American communities. In order to achieve the dream, many minority students receive student loans to fund their higher education pursuits with hopes that future employment will afford repayment. However, most do not realize the risks. Student loan debt is a severe and mounting problem in the United States. In the United States, seven million student loan borrowers are now in default. Forty-five percent of college students obtain some sort of credit card debt. Lack of knowledge on financial literacy and student loan debt management is a serious issue. This article presents findings that support making financial literacy courses mandatory for college students just like Mathematics and English courses, especially at minority-serving colleges and universities.
5
Herdinata, Christian. "Policy Identification of the Working Capital Management of Medium-Sized Business." Mediterranean Journal of Social Sciences 8, no. 6 (November 27, 2017): 29–36. http://dx.doi.org/10.1515/mjss-2017-0039.
Full textAbstract:
AbstractEnterprises use working capital to meet the needs of the organizations in order to perform operational activities. Hence, in order to produce optimal results, companies require sufficient working capital. Medium-scale industries have great potential in driving the economy through output and employment. As such, the purpose of this research is to analyze the working capital management policy of mediumsized business. This research employs literature study method by compiling relevant literature on the research problems. The data analysis process of this research is divided into three stages: (1) data reduction, which includes summarizing, classifying main points, focusing on important facts, and finding patterns; (2) data display, which includes data compilation and systematic data presentation; and (3) conclusion drawing and verification, which presents the research conclusions on the problem statements. Research findings suggest that working capital policy is dependant upon loan term and interest rate, which means that longer loan period leads to higher interest. Long-term loan of working capital requires debtors to pay bigger interest than short-term loan, because creditors must take into consideration the risks of uncertain future. Companies with short cash conversion cycle suggest fast retrieval of accounts receivable, good inventory management, and slower payment to supplier while maintaining corporate credibility.
6
Kurniawati, Lelly, and Albertus Sentot Sudarwanto. "Legal Protection for Creditor Due To Debitors Default in Bank Loan Agreement." International Journal of Social Sciences and Humanities Invention 6, no. 11 (November 2, 2019): 5702–6. http://dx.doi.org/10.18535/ijsshi/v6i11.01.
Full textAbstract:
For bank, loan is one of its core business. In addition to profitability, loan also contains credit risk. Accordingly, Financial Services Authority (OJK) as the supervisory authority of Indonesian banks enforces the credit regulation in Indonesia. This is understandable given that improper credit management may result in bank’s revenue from credit sector, which may disturb the bank’s health due to the decrease of bank's revenue. Therefore, resolution of problem loan is priority for banks. The present study was categorized as normative legal study, the data were analyzed qualitatively. Various attempts were maed to resolve problem loans. One of them is through the filing of small claim court. A number of easiness can be chosen because small claim court is relatively quick and cheap. In the future, the government is expected to provide more pathways to make small claim court, including increasing the maximum nominal of the charge.
7
Hu, Huajing, and Yili Lian. "Institutional investors and the cost of bank loans." Managerial Finance 42, no. 6 (June 13, 2016): 569–84. http://dx.doi.org/10.1108/mf-03-2015-0077.
Full textAbstract:
Purpose – The purpose of this paper is to investigate the impact of institutional investors on the cost of bank loans using US bank loan data from 1995 to 2012. Design/methodology/approach – The cost of bank loans is analyzed with regard to loan spreads, collateral requirements, and the number of prepayment covenants. Findings – This paper finds that, first, holding institutional ownership constant, institutional control is positively related to the cost of bank loans, implying that strong institutional control intensifies conflicts between large shareholders and lenders. Second, institutional holdings are negatively related to the cost of bank loans. These results indicate that institutional monitoring reduces the agency problem between shareholders and managers. Originality/value – This paper suggests that the trade-off between institutional monitoring and institutional control jointly determines the effect of institutional investors on the cost of bank loans. Moreover, lenders should consider large shareholders and their influence when making lending decisions.
8
Cai, Ning, and Wei Zhang. "Regime Classification and Stock Loan Valuation." Operations Research 68, no. 4 (July 2020): 965–83. http://dx.doi.org/10.1287/opre.2019.1934.
Full textAbstract:
For traditional perpetual American put options under regime-switching models with positive risk-free interest rates, optimal stopping usually can occur in any regime. Nonetheless, if the risk-free interest rates are allowed to equal zero (the interest rate may drop to zero sometimes in reality), there may exist “continuation regimes” within which optimal stopping can never occur, that is, within which stopping is never optimal. A natural problem is “regime classification,” that is, determination of all continuation regimes. In “Regime Classification and Stock Loan Valuation,” Ning Cai and Wei Zhang develop a unified, fixed point approach to solving this regime classification problem under general regime-switching exponential Levy models with any finite numbers of regimes and general Levy types. Applying this result, they also provide a unified framework for the valuation of infinite maturity stock loans under general regime-switching exponential Levy models.
9
Agarwal, Sumit, Swee Hoon Ang, Yongheng Deng, and Yonglin Wang. "Mortgage Brokers and the Effectiveness of Regulatory Oversights." Management Science 67, no. 8 (August 2021): 5278–300. http://dx.doi.org/10.1287/mnsc.2020.3701.
Full textAbstract:
This paper studies the responses among different types of mortgage brokers to occupational licensing regulations. By explicitly accounting for heterogeneities between sole and corporate brokers, we find evidence that sole brokers respond to financial regulatory oversight by applying a more stringent screening process in conducting brokerage activities, hence achieving better loan performances. Specifically, loans originated through sole brokers exhibit higher quality on an array of credit-relevant characteristics, including those reported and unreported to future investors. By contrast, we find no such regulatory effect on corporate brokers who tend to rely extensively on reported characteristics that are critical to the subsequent loan securitization at the expense of unreported information despite the latter indicating potential risks. Hence, the agency problem among sole brokers can be mitigated by the consolidated financial requirement for occupational licensing. However, such provision is ineffective in governing corporate brokers. Additionally, welfare gains associated with the occupational licensing regulation are achieved at the expense of prospective borrowers paying a higher loan price and having reduced credit access. Stricter licensing regulations may induce welfare loss related to credit rationing as reasonable loan applications are not funded, including those with potentially lower default risk. This paper was accepted by Kay Giesecke, finance.
10
Booth, David E., Pervaiz Alam, Sharif N. Ahkam, and Barbara Osyk. "A Robust Multivariate Procedure for the Identification of Problem Savings and Loan Institutions." Decision Sciences 20, no. 2 (June 1989): 320–33. http://dx.doi.org/10.1111/j.1540-5915.1989.tb01881.x.
Full text
11
Guowei, Zhang, and Wang Tao. "Game Analysis on the Difficulties of Small and Medium-sized Enterprises' Credit Financing in the Big Data Era." E3S Web of Conferences 253 (2021): 02004. http://dx.doi.org/10.1051/e3sconf/202125302004.
Full textAbstract:
The effective use of social funds is an important guarantee for the benign development of the economy. The shortage of funds faced by the development of small and medium-sized enterprises (SMEs) and a lot of social capital sits idle are still one of the major contradictions that need to be resolved urgently. And the main source of funds for China’s real economy is still loans from commercial Banks. Through the analysis of the loan game between Banks and enterprises in the target economic environment we can find the crux of the problem. Which mainly lies in the market for enterprise information management demand and Market-based interest rate management to reduce market transaction costs and other regulatory construction issues. Therefore, in order to improve market transparency and reduce bank and corporate loan risks, the government and banks should make corresponding system management reforms in credit evaluation and classification and block management.
12
Listiawati, Rodiana. "The Community Dedeication Kampung Pulo geulis, Babakan Pasar, Kota Bogor Business Group Through Coaching And developing Saving and Loan Business Unit Passing Covid-19 Pandemic Time." Jurnal Pemberdayaan Komunitas MH Thamrin 2, no. 2 (September 30, 2020): 40–48. http://dx.doi.org/10.37012/jpkmht.v2i2.372.
Full textAbstract:
Abstract The main problem faced by Babakan Pasar Kampung Pulo Geulis exactly in RW IV Bogor City is the difficulty of getting credit for micro business so that they lend to Bank Keliling with high interest. The purpose of this community dedication is to transfer knowledge about the importance of forming saving and loan unit and motivate to develop saving and loan unit that has been established since last year. The method provided to management and members of savings and loan is coaching by means of counseling to them and giving the guidance how to develop savings and loan business unit. They are to be trained how to record and make simple book keeping so that the members of savings and loan unit can know the amount of deposits and funds in a year. The sample of this community dedication is all members of savings and loan that is also as owners of micro unit who have already become the members of this unit for a year as training participants. After coaching and counseling, this savings and loans unit can get the benefit of them and also increase the member. The target of this dedication activity is to develop this unit and assist it by giving loan to its member as micro business actor. Keywords: micro business, savings and loan unit, Kampung Pulo Geulis.
13
Nefi, Arman, and Adi Warman. "METODE PENGALIHAN KREDIT SINDIKASI." Jurnal Hukum & Pembangunan 38, no. 3 (September 3, 2008): 371. http://dx.doi.org/10.21143/jhp.vol38.no3.174.
Full textAbstract:
AbstrakLoan syndication assignment exists in secondmy market. Assignment is alegal means to solve liquidity problem or risk management. There areseveral methods of loan syndication transfer namely, assignment, novation,sub partcipation, subrogation, and cessie. Assignment and participation arethe methods of loan syndication transfer originated from common lawsystem. Novation is a method of loan syndication transfer which is known incommon law and civil law system as well. Cessie is a method of loansyndication transfer which has a deep root in civil law tradition. All of loansyndication methods are used in secondary loan syndication market. Theyhave different characteristics and {egal implications.
14
Cao, Ying (Jessica), Calum Turvey, Jiujie Ma, Rong Kong, Guangwen He, and Jubo Yan. "Incentive mechanisms, loan decisions and policy rationing." Agricultural Finance Review 76, no. 3 (September 5, 2016): 326–47. http://dx.doi.org/10.1108/afr-08-2015-0032.
Full textAbstract:
Purpose The purpose of this paper is to investigate whether negative incentives in the pay-for-performance mechanism would trigger loan officers to strategically reject potentially good loans. If so, what is the feasible solution to alleviate the problem. Design/methodology/approach A framed field experiment was conducted to test loan decision behaviors using loan officers from Rural Credit Cooperatives in Shandong, China. A 2 by 2 between-subject design was adopted to generate variation in incentives and prior information about credit risks. Findings Results showed that loan officers did ration credit by rejecting more loans when facing risks of personal income loss. However, providing risk information about the application pool boosted the approval rate and offset the behavioral responses by a roughly same magnitude. Research limitations/implications Findings in this study suggest that certain institutional settings can result in credit rationing via strategic loan misclassification. Further, information sometimes generates similar effects as those costly incentives or mechanisms that are not implementable in practice. Originality/value This study adopted an innovative monetized experimental design that allows researchers to examine the (otherwise unobservable) trade-offs between Type I and Type II error in loan misclassification as incentives change. In addition, an anchoring prior information treatment is used to solicit the relative power of almost costless information and costly monetary incentives, and to point out a potentially feasible solution.
15
Ewanchuk, Logan, and Christoph Frei. "Recent Regulation in Credit Risk Management: A Statistical Framework." Risks 7, no. 2 (April 14, 2019): 40. http://dx.doi.org/10.3390/risks7020040.
Full textAbstract:
A recently introduced accounting standard, namely the International Financial Reporting Standard 9, requires banks to build provisions based on forward-looking expected loss models. When there is a significant increase in credit risk of a loan, additional provisions must be charged to the income statement. Banks need to set for each loan a threshold defining what such a significant increase in credit risk constitutes. A low threshold allows banks to recognize credit risk early, but leads to income volatility. We introduce a statistical framework to model this trade-off between early recognition of credit risk and avoidance of excessive income volatility. We analyze the resulting optimization problem for different models, relate it to the banking stress test of the European Union, and illustrate it using default data by Standard and Poor’s.
16
Al-Bahadli, Sadiq T., Riad H. Al-Aqili, and Hafedh Abdulameer Ameen. "Deposit and Loan Guarantee Institutions and it’s Role in Restoring Confidence in the Iraqi Banking Sector." Webology 19, no. 1 (January 20, 2022): 4194–212. http://dx.doi.org/10.14704/web/v19i1/web19277.
Full textAbstract:
Pacing from the part of deposits and loans in supporting banking stability, any peril that threatens this part constitutes direct trouble to the banking system. Thus, should develop the mechanisms to cover and guarantee the rights of depositors (deposit guarantee), and mechanisms to cover banks from remitment of bank credit and cover them from ruin and ruin through the establishment of an institution guaranteeing loans, which represents an abecedarian demand to guarantee and stabilize the banking system and restore lost Confidence in the Iraqi banking system. Consequently, the exploration problem surfaced from a set of questions: Do deposit and loan guarantee institutions lead to the banking system's stability? Does this affect the degree of stability of deposits and attract further deposits, especially since deposits within the banking system are (23), while there's a chance (77) of the financial mass outside the banking system? As well as the question, will the bank credit increase after the loan institution guarantees this credit? Therefore, cranking the Deposit Guarantee Law and approving the Loan Guarantee Law will contribute to the anticipated part in restoring Confidence in the Iraqi banking system? It represents the fundamental problem of exploration, primarily since the Deposit Law, despite its blessing, has not been enforced.
17
Gusti Ayu Eka Damayanthi, I., Ni Luh Putu Wiagustini, I. Wayan Suartana, and Henny Rahyuda. "Loan restructuring as a banking solution in the COVID-19 pandemic: Based on contingency theory." Banks and Bank Systems 17, no. 1 (April 6, 2022): 196–206. http://dx.doi.org/10.21511/bbs.17(1).2022.17.
Full textAbstract:
The world’s economic growth has decreased due to the COVID-19 pandemic. Many companies are experiencing financial distress, so they cannot pay off their maturing debts. Banks as lenders face the risk of non-performing loans. The increasing number of unpaid loans will reduce a bank’s operating income and gain. The contingency approach is used as a conditional factor that can increase the effectiveness of firm performance. The relevance of this study is how banking strategies overcome the problem of uncertainty regarding risk and return during a pandemic. Contingency theory describes organizational success as influenced by contextual factors and established strategies. The purpose of this study is to systematically review the literature related to loan restructuring as a solution to non-performing loans in banking companies in Indonesia. The research method is a review of 40 articles from Scopus and a descriptive analysis of company financial statement notes to see what strategies banks are using during the COVID-19 pandemic. Based on contingency theory, the results of the study explain organizational success which is influenced by contextual factors and the established strategy. The more appropriate the strategy chosen in a given situation, the higher the achievement of organizational performance. A qualitative analysis provides a solution for a bank to overcome the problem of unpaid loans at maturity through a restructuring model strategy with modified loan terms.
18
Gaur, Dolly. "Total Quality Management and Assets Quality." International Journal of Business Analytics 8, no. 1 (January 2021): 38–57. http://dx.doi.org/10.4018/ijban.2021010103.
Full textAbstract:
The present study aims to examine the relationship between assets quality of banks as represented by non-performing assets (NPA) and management quality. The study has used Fama-MacBeth regression approach to measure management quality, which has been considered as the primary determinant of NPA. A sample comprising of 45 scheduled commercial banks in India has been studied for a time period of 15 years (2004-2019). The findings have revealed that better quality management leads to better asset quality. Banks with above average managerial ability can reduce NPA significantly. The bank managers should focus on their role in controlling problem loans of banks and should implement more efficient monitoring and supervision process for loan portfolios. The policy makers should pay attention towards the managerial ability of banks and stress on enhancing the quality of management. Also, investors may take note of the banks that are showing good management quality because such banks can be a profitable investment avenue.
19
Rista Ananda Siregar, Mariana, and Qoute Nuraini Cahyaningrum. "PEMANFAATAN MEDIA AUDIO VISUAL DALAM MENGUATKAN KOMUNIKASI ORGANISASI KOPERASI WANITA." Seminar Nasional ADPI Mengabdi Untuk Negeri 1, no. 1 (September 20, 2020): 232–37. http://dx.doi.org/10.47841/adpi.v1i1.57.
Full textAbstract:
Koperasi Wanita Usaha Wanita Mandiri was created as a forum for women's groups to be
economically empowered. When applying the rules of lending and repayment activities every
month when members meet, management has facing contrainst. The purpose of this standard
operating procedures (SOP) is to help the group's management and group leader of disciplining
and facilitating the savings and loan administration at the level of the group chairwoman,
treasurer and cashier. The method used is a lecture - a discussion conducted in three meetings to
indetified and defined problem . The socialization of SOP for loans and repayment of loans is
socialized through whatsapp communication media. The obstacle of socialization is the limited
internet quota of some members in the Carangpulang 1 and Carangpulang 2 groups in accessing
this SOP in whatsapp and face-to-face media due to the pandemic conditions that still lasted until
June 2020. However, the board felt that the SOP helps them in facilitating loan activities.
20
Wang, Yu-Lin, Chien-Hui Lee, and Po-Sheng Ko. "Do Loan Guarantees Alleviate Credit Rationing and Improve Economic Welfare?" Sustainability 12, no. 9 (May 11, 2020): 3922. http://dx.doi.org/10.3390/su12093922.
Full textAbstract:
By designing credit contracts with inversely related interest rates and collateral, banks can overcome the problems of adverse selection and moral hazard when there is an informational asymmetry in competitive credit markets. One salient result points out that, if borrowers’ insufficient endowments of wealth cause a binding collateral constraint, a credit rationing equilibrium arises because of collateral’s inability to achieve perfect sorting. The purpose of this paper is to examine the consequences of government loan guarantees on equilibrium credit contracts and economic welfare. More specifically, the effects of loan guarantees on interest rates, collateral, and credit rationing were studied. Our results suggest that government loan guarantees should target high-risk entrepreneurs. Loan guarantees targeting high-risk entrepreneurs reduce a pledge of collateral in credit contracts, drop social cost, and increase economic welfare. Under the circumstances that borrowers’ insufficient wealth causes a binding collateral constraint, loan guarantees targeting high-risk entrepreneurs alleviate the problem of credit rationing and improve economic welfare.
21
Yustini, Tien. "MSME-Based Industrial Development Strategy Through the Role of LPDB (Revolving Fund Management Institution) and South Sumatra UMKM Readiness Facing the Digital 4.0." Business and Economic Research 8, no. 4 (November 20, 2018): 109. http://dx.doi.org/10.5296/ber.v8i4.13725.
Full textAbstract:
This study aims to analyze various issues related to the distribution of revolving funds for Small and Medium Enterprises and Cooperatives in South Sumatra. The analysis was carried out by describing the absorption of revolving funds in MSMEs and the potential absorption of labor in the MSME sector quantitatively. The results of the analysis show that MSMEs in South Sumatra generally face some fundamental problems, pillars are self-sufficient. First, the problem of capital, both marketing, "For capital issues may still be overcome. Because the government through the banking and the Ministry of Cooperatives can provide sufficient access to provide loan capital. However, on the marketing side is still very lack of knowledge." Marketing is a problem. To overcome these problems, SMEs in South Sumatra were addressed, by improving product quality and standardizing their products. Besides helping increase human resources and access to financing sources, collaboration between government and e-commerce will continue and be able to realize a shared vision to make MSMEs in South Sumatra able to participate in the era of Digital Energy of Asia in 2020. In an effort to encourage this growth, the provincial government of South Sumatra has facilitated new business actors and existing SMEs to expand their business by holding socialization and training in various district / city areas. Business actors can also get training, which cooperates with the Cooperative Education and Training Agency (UPTD Balatkop) in regencies / cities in South Sumatra. The trainings are funded with deconcentration funds. The Ministry of Cooperatives and SMEs will support and will provide training, capital by providing cooperative loan facilities for SMEs through the Revolving Fund Management Agency (LPDB). Through LPDB, facilitated SMEs for cooperatives can be capital loans with 7 percent interest. For business actors already legal entities can borrow 4.5 percent
22
Amiliyani, Chandra. "SISTEM INFORMASI SIMPAN PINJAM KOPERASI KARYAWAN PTPN XII KEBUN SUMBER TENGAH." Jurnal Ilmiah Informatika 3, no. 1 (January 28, 2020): 220–26. http://dx.doi.org/10.35316/jimi.v3i1.630.
Full textAbstract:
The saving and loan information system of the Employees Cooperative in PTPN XII (Persero) Kebun Sumber Tengah is an enterprise dealing with saving and loan particularly for the employees of PTPN XII (Persero) Kebun Sumber Tengah giving such a service for the members especially in saving and loan. The data management is already computerized even though it is still run by using Microsoft Office that it does make the members who want to do saving and loan should wait in longer time because it usually appears data redundancy in the saving and loan data itself. The researcher raises a problem based on what is faced in the saving and loan data management. It is then expected to help the cooperative staffs increase their service to the members as well as save the data or any important documents, so the information can be presented faster and more accurately.The method of developing the information system applies system developing tools such as Flow Map Context Diagram (Contex Diagram), DFD (Data Flow Diagram) and design tools while the database proposed is ERD (Entity Relationship Diagram) relation table. The saving and loan information system that is designed aims at building a computerized information system that can enable the employees in the cooperative department manage the data of member, data of saving, data of loan, and data of installment.
23
Kim, Kevin Nooree, and Ani L. Katchova. "Impact of the Basel III bank regulation on US agricultural lending." Agricultural Finance Review 80, no. 3 (January 7, 2020): 321–37. http://dx.doi.org/10.1108/afr-11-2019-0124.
Full textAbstract:
Purpose Following the recent global financial crisis, US regulatory agencies issued laws to implement the Basel III accords to ensure the resiliency of the US banking sector. Theories predict that enhanced regulations may alter credit issuance of the regulated banks due to increased capital requirements, but the direction of changes might not be straightforward especially with respect to the agricultural loans. A decrease in credit availability from banks might pose a serious problem for farmers who rely on bank credit especially during economic recessions. The paper aims to discuss these issues. Design/methodology/approach In this study, the impact of Basel III regulatory framework implementation on agricultural lending in the USA is examined. Using panel data of FDIC-insured banks from 2008 to 2017, the agricultural loan volume and growth rates are examined for agricultural banks and all US banks. Findings The results show that agricultural loan growth rates have slowed down, but the amount of agricultural loan volume issuance still remained positive. More detailed examination finds that regulated agricultural banks have decreased both the agricultural loan volume and their loan exposure to the agricultural sector, showing a possible sign of credit crunch. Originality/value This study examines whether the implementation of the Basel III regulation has resulted in changes in agricultural loan issuance by US banks as predicted by the lending channel theory.
24
Gao, Lu, and Jian Xiao. "Big Data Credit Report in Credit Risk Management of Consumer Finance." Wireless Communications and Mobile Computing 2021 (June 15, 2021): 1–7. http://dx.doi.org/10.1155/2021/4811086.
Full textAbstract:
Traditional consumer finance is a modern financial service method that provides consumer loans to consumers of all classes. With the gradual improvement of China’s credit reporting system, big data credit reporting has effectively made up for the lack of traditional credit reporting and has been widely used in the consumer finance industry. In this context, the in-depth analysis of the specific application of big data credit reporting in the credit risk management of consumer finance and the strengthening of the research on the application of big data credit reporting in the credit risk management of consumer finance are urgently needed to be resolved in the economic and financial theoretical and practical circles’ problem. This article mainly studies the research on credit risk management of consumer finance by big data. The experimental results of this paper show that the model has a good forecasting ability, can distinguish between normal loan customers and default loan customers, and is suitable for practical personal credit risk control business. The prediction accuracy of the default model of the fusion model is 97.14%, and the default rate corresponding to the actual business is 2.86%. By combining the risk items such as the blacklist and gray list in the Internet finance industry, the bad debt rate and illegal usury can be well controlled to meet industry supervision.
25
Olson, Dennis, and Taisier A. Zoubi. "The determinants of loan loss and allowances for MENA banks." Journal of Islamic Accounting and Business Research 5, no. 1 (April 8, 2014): 98–120. http://dx.doi.org/10.1108/jiabr-07-2013-0027.
Full textAbstract:
Purpose – This study aims to examine the determinants of the allowance for loan losses (ALL) and loan loss provisions (LLP) for banks in the Middle East and North African (MENA) region using both a two-stage approach and simultaneous equation system to address the potential problem of estimation bias introduced by estimating the ALL and LLP separately. The paper also tests three competing hypotheses: the earnings management hypothesis, the capital management hypothesis, and the signaling hypothesis. Design/methodology/approach – The authors adopt a simultaneous equation and three-stage approaches to test whether MENA banks jointly determine LLP and ALL and the determinants of the two accounts. The sample consists of all available electronic data for 75 banks (451 bank-year observations) in nine MENA countries over the period 2000-2008. Findings – Evidence suggests that the two accounts are jointly determined. The results support the earnings management hypothesis – meaning that MENA banks have engaged in year-to-year income smoothing. The authors also find that LLP and ALL provide signals about future earnings. Research limitations/implications – The authors acknowledge that the LLP account is only one of many accounts on the income statement that could be used for signaling or to manage earnings, and that the ALL is one of several accounts that could be used for signaling, earnings or capital management. Future studies could examine other accruals for their role in managing earnings, signaling and capital. Practical implications – The results indicate that bank managers use LLP and ALL accounts to manage earnings management, policy makers may want to limit the ability of banks to manipulate earnings. Originality/value – Prior research on the loan loss accounting practices has been based on single equation models of the determinants of LLP and ALL. An issue that has not been adequately addressed in this literature is that ALL and LLP may be interrelated and jointly determined by banks. If the two accounts are not independent of each other, failure to include one when estimating the other may lead to an omitted variable problem, while including both in the same equation induces a potential simultaneity bias. The study is the first empirical work examining whether ALL and LLP are jointly determined by banks. By jointly estimating LLP and ALL, the study permits an assessment of the magnitude of the potential error from adopting ordinary least squares estimation of a single equation model.
26
Koju, Laxmi, Ram Koju, and Shouyang Wang. "Does Banking Management Affect Credit Risk? Evidence from the Indian Banking System." International Journal of Financial Studies 6, no. 3 (July 23, 2018): 67. http://dx.doi.org/10.3390/ijfs6030067.
Full textAbstract:
This study investigated the impact of banking management on credit risk using a sample of Indian commercial banks. The study employed dynamic panel estimations to evaluate the link between banking management variables and credit risk. The empirical results show that an increase in loan portion over total assets does not necessarily increase problem loans. The findings suggest that high capital requirements and large bank size do not reduce default risk, whereas high profitability and strong income diversification policies lower the likelihood of default risk. The overall empirical results supported the “operating efficiency”, “diversification” and “too big to fail” hypotheses, confirming that credit quality in the banking industry is mainly driven by profitability, banking supervision, high credit standards and strong investment strategies. The findings are relevant to bank managers, investors and bank regulators, in formulating effective credit policies and investment strategies.
27
Danjuma, Theophilus, and M. S. Dange. "OPTIMAL INVESTMENT POLICY AND CAPITAL MANAGEMENT IN A FINANCIAL INSTITUTION." FUDMA JOURNAL OF SCIENCES 6, no. 1 (March 31, 2022): 117–28. http://dx.doi.org/10.33003/fjs-2022-0601-846.
Full textAbstract:
This research work considered an asset optimization problem where we examine how a financial institution can optimally allocate its total wealth among three assets namely; treasury, security and loan in stochastic interest rate setting and also determined how a financial institution can manage its capital. The optimal investment policy was derived through the application of stochastic optimization theory for the case of constant relative risk aversion (CRRA) utility function. Also, the Stochastic Differential Equation (SDE) for the capital adequacy ratio under Basel Accord, the SDE for the Total Risk – Weighted Assets (TRWA), the SDEs for the capital required to maintain the capital adequacy ratio under Basel II and Central Bank of Nigeria (CBN) standards were derived and solved numerically to study the capital management problem of the financial institution. Numerical examples using published data obtained from Central Bank of Nigeria (CBN) statistical bulletin and Nigeria Stock Exchange were presented to illustrate the dynamics of the optimal investment policy and how a financial institution can manage its capital. From the results, the optimal investment strategy can be achieved by shifting the financial institution investment away from the risky assets (security and loan) towards the riskless asset (treasury). It was also observed that if a financial institution observes the Basel II standard or Nigeria CBN standard of capital requirement, the financial institution would be considered to be strongly capitalized and guarantees the ability to absorb unexpected losses.
28
Erokhin, V. V., and Yu A. Kavin. "EVALUATION OF A CREDIT CUSTOMER IN A CREDIT ORGANIZATION." Juvenis Scientia, no. 3 (2019): 13–21. http://dx.doi.org/10.32415/jscientia.2019.03.03.
Full textAbstract:
The article proposes a model of an effective credit management system for a credit institution. The goal is to determine the impact of selected loan management processes on the effectiveness of the entire credit management system. This is done through hypothesis testing, using the usual least squares method. Another problem is the assignment to individual clients of their real strategic importance in the credit portfolio of a credit institution in order to ensure the optimal allocation of financial resources. For this purpose, two different methods are used, namely: analysis of the client loan portfolio and the method of estimation using logistic regression. A model of an effective credit management system in a credit institution has been proposed. The factors affecting the credit management process and the effectiveness of the entire credit management system are identified. The strategic values of the credited clients for the credit institution are determined, which allows optimizing the distribution of the financial resources of the credit institution and the entire credit management system.
29
Onikiienko, Serhii, Yevheniia Polishchuk, Alla Ivashchenko, Anna Kornyliuk, and Nazar Demchyshak. "Prior credit assessment of long-term SME projects with non-standard cash flows." Banks and Bank Systems 16, no. 2 (June 17, 2021): 148–58. http://dx.doi.org/10.21511/bbs.16(2).2021.14.
Full textAbstract:
Over the past three decades, the relative bank loan demand has changed due to the arising small and medium-sized enterprises (SMEs). Therefore, banks in their operations face the problem of processing an ever-increasing number of loan applications. The aim of this paper is to develop an auxiliary approach to assessing the prior creditworthiness of long-term SME projects with nonstandard cash flows.This study reveals how the principles of value-based management can be incorporated into the process of borrower’s creditworthiness assessment to improve the process of screening loan applications. For this, the internal rate of return was used as a criterion for loan granting decision at the initial stage of loan underwriting.An algorithm for the preliminary evaluation of loan applications is proposed and is based on the principle of maximizing the shareholder value of banks. This algorithm helps to define the credit terms taking into consideration the distribution of positive cash flows throughout the project’s expected economic life, calculate the possible real effective interest rate concerning the borrower’s nonstandard cash flow schedule, make a rough analysis on the economic efficiency of lending and state the necessary criterion to initiate the procedure of loan underwriting for the projects with nonstandard cash flow schedules. The proposed estimation algorithm stemming from the IRR-approach for the cash flow analysis can also be initially used by a borrower as a tool for credit solvency self-testing via screening of periods with corresponding cash flows that can be used for loan servicing.
30
Siarka, Pawel. "Global Portfolio Credit Risk Management: The US Banks Post-Crisis Challenge." Mathematics 9, no. 5 (March 6, 2021): 562. http://dx.doi.org/10.3390/math9050562.
Full textAbstract:
This paper addresses the problem of modeling credit risk for multi-product and global loan portfolios. The authors presented an improved version of the Basel Committee’s one-factor model for capital requirements calculation. They examined whether latent market factors corresponding to distinct portfolios are always highly correlated within the global portfolio and how this correlation impacts total losses distribution function. Historical losses of top-tier banks (JPMorgan Chace, Bank of America, Citigroup, Wells Fargo, US Bancorp) were analyzed. Furthermore, the estimation of the correlations between latent market factors was conducted, and its impact on the total loss distribution function was assessed. The research was performed based on consolidated financial statements for holding companies - FR Y-9C reports provided by the Federal Reserve Bank of Chicago. To verify the improved model, the authors analyzed two distinct loan portfolios for each bank, i.e., credit cards and commercial and industrial loans. They showed that the correlation between latent market factors could be significantly lower than one and disregarding this conclusion may lead to overestimating total unexpected losses. Hence, capital requirements calculated according to the IRB (Internal Ratings Based Approach) formula as a sum of individual VaR999 estimates may be biased. According to this finding, the enhanced one-factor model seems to be more accurate while calculating unexpected total loss for global portfolios. The authors proved that the active credit risk management process aiming to lower market factors’ correlation results in less volatile total losses. Therefore, financial institutions could be more resistant to macroeconomic downturns.
31
Tang, Enlin, and Song Xu. "Pricing of Embedded Options in Bank Deposits and Loans Based on Jump-Diffusion Interest Rate Model." Complexity 2021 (May 15, 2021): 1–15. http://dx.doi.org/10.1155/2021/9975536.
Full textAbstract:
The marketization of interest rate is an inevitable requirement for China’s financial reform and joining the WTO to connect with the international financial market. It is also an important link to improve the marketization degree of China’s financial system. The marketization of interest rate in China is gradually advancing according to its preset mode. In the process of interest rate marketization, an unavoidable problem is that while the interest rate marketization gives the commercial banks the autonomy of capital pricing, the fluctuation of interest rate is more and more frequent. However, due to the fluctuation of interest rate, the loan as the main assets of commercial banks will be prepayed by borrowers, and the time deposit as the main liabilities of commercial banks will be withdrawn by depositors in advance; that is, embedded options are implied in asset liability items, which makes it difficult for commercial banks to accurately calculate the actual interest margin of deposits and loans and manage the interest rate risk. Therefore, it is of great significance to identify and price such embedded option value. On the basis of identifying and decomposing the embedded options in deposit and loan of commercial banks, according to the change characteristics of deposit and loan interest rate of Chinese commercial banks, this paper chooses jump-diffusion interest rate model to describe the change of benchmark interest rate of deposit and loan in China and demonstrates the advantages of this model compared with other models. Based on Monte Carlo simulation technology, the embedded options of five-year fixed deposit and ten-year prepayable loan in China are priced. On this basis, it points out that the real interest margin of commercial bank’s deposit and loan should be the nominal interest margin minus the value of deposit and loan’s embedded options. In the process of interest rate risk management, we should pay attention to the existence of embedded options and carry out effective management.
32
Khatun, Asia, and Ratan Ghosh. "Corporate Governance Practices and Non-performing Loans of Banking Sector of Bangladesh: A Panel Data Analysis." International Journal of Accounting and Financial Reporting 9, no. 2 (April 15, 2019): 12. http://dx.doi.org/10.5296/ijafr.v9i2.14503.
Full textAbstract:
This paper tries to inspect the association and relationship between corporate governance determinants and level of non-performing loan (NPL) of listed commercial banks in Bangladesh. Recently Banks are facing a problem of default loan. This default loan or NPL may reduce the loan giving capacity of the Banks and it may decrease the economic growth of a country. Moreover, there is less research to find out the implication of good governance on the level of NPL in banking sector of Bangladesh than that of developed countries. Here, data from thirty listed commercial banks for the year 2008-2017 (10 years) are taken to explore the rapport between the corporate governance variables and NPL. Random Effect GLS regression method is used to analyze the data. Findings told that commercial banks follow the code of corporate governance on a comply basis however their relationship with NPL is positively significant within the taken determinants of corporate governance. It is expected that, banks with good quality management may ensure the quality of loan and it will reduce the level of NPL.
33
Hasan, Mhd Arief, and Rianto Rianto. "Analisa dan Perancangan Sistem Keuangan Tandan Buah Sawit (TBS) pada Koperasi Sumber Rezeki Kampung Rantau." Indonesian Journal of Computer Science 6, no. 2 (August 4, 2018): 206–17. http://dx.doi.org/10.33022/ijcs.v6i2.39.
Full textAbstract:
This study aims to analyze the financial system of Bunch Palm Fruit (TBS) in the Cooperative Source Rezeki Kampung Rantau Minas District Siak District. Basically Koperasi Sumber Rezeki is a cooperative that runs a community plantation business but now Sumber Rezeki Cooperative is progressing so that Sumber Rezeki Cooperative opens units such as savings and loan units and fertilizer sales unit. Management of the administrative system to date in the Cooperative Resources Rezeki still done manually with the number of cooperative management is very limited. This leads to slow performance of the cooperative and allows for the mistakes that are not desired by the manager of the cooperative. Therefore, the need for a new system more efficient in reducing the problem of this problem. The system developed is an application of savings and loan, recording, and calculation of the sale of FFB, and the sale of fertilizer. The design of this application is made for the purpose of facilitating the cooperative managers in monitoring the existing finances without having to examine every manual book written by its members.
34
Митина, О. А. "Аналитические модели для решения задачи классификации данных." ТЕНДЕНЦИИ РАЗВИТИЯ НАУКИ И ОБРАЗОВАНИЯ 70, no. 1 (2021): 42–46. http://dx.doi.org/10.18411/lj-02-2021-10.
Full textAbstract:
Credit risk management is the main task of banks and other credit institutions. Untimely partial or complete non-repayment of the loan body, as well as the interest part, within the period established by the agreement and in compliance with all the conditions provided for, is one of the main causes of losses of financial institutions. Data mining technologies contain effective tools for building scoring models – neural networks, decision trees, and logistic regression to predict the value of the target variable that allows you to assess the creditworthiness of the client. The purpose of this article is to show the relevance of the problem of data classification on the example of the financial and credit sphere (credit loan).
35
Oliveira, Rogerio De Deus, and Caio Ibsen Rodrgues de Almeida. "Alocação de Carteiras Sujeitas a Risco de Crédito." Brazilian Review of Finance 1, no. 2 (April 1, 2003): 301. http://dx.doi.org/10.12660/rbfin.v1n2.2003.1132.
Full textAbstract:
Credit Risk is an important dimension to be considered in the risk management procedures of financial institutions. Is a particularly useful in emerging markets where default rates on bank loan products are usually high. It is usually calculated through highly costly Monte Carlo simulations which consider different stochastic factors driving the uncertainly associated to the borrowers liabilities. In this paper, under some restrictions, we drive closed form formulas for the probability distributions of default rates of bank loans products involving a big number of clients. This allows us to quickly obtain the credit risk of such products. Moreover, using these probability distributions, we solve the problem of optimal portfolio allocation under default risk.
36
KRUKHMAL, Olena, and Oryna KOVRYHINA. "Analysis of problematic debt in the banking system of Ukraine." Economics. Finances. Law, no. 11/2 (November 21, 2019): 9–12. http://dx.doi.org/10.37634/efp.2019.11(2).2.
Full textAbstract:
Crisis phenomena has led to an increase in problem debt in banks' loan portfolios, a decline in lending and a decrease in the number of banking institutions in Ukraine. The issue of debt reduction remains an urgent problem for Ukrainian banks, as it affects the bank's liquidity and can lead to insolvency or even bankruptcy of a financial institution, so banks have to make significant reserves for credit risks, which directly affects the investment capacity of banking institutions. The article was written to investigate the nature of the concept of problem credit, analyze the dynamics of problem loans of Ukrainian banks, investigate the reasons for increasing the absolute amount of arrears, suggest directions for improving the management of problem loans of banks in Ukraine. The purpose of the article is to analyze the dynamics of the share of problematic debt in the banking system of Ukraine in times of crisis, to study the current state and causes of problem loans. The positions of scientists on the interpretation of the essence of the concept of "problem credit" are analyzed, the author's approach to the definition of this concept is proposed. The dynamics of problematic debt in the banking system of Ukraine over the last ten years and in crisis periods is analyzed. The reasons for increasing the absolute amount of arrears are investigated Taking into account our results, namely the analysis of the dynamics of problem loans, we emphasize the expediency of our recommendations for overcoming bad debts. The proposed measures will have a positive effect on minimizing credit risks for banks, will help reduce the amount of bad debt and automatically ensure the growth of the country's economy.
37
de la Fuente-Cabrero, Concepción, Mónica de Castro-Pardo, Rosa Santero-Sánchez, and Pilar Laguna-Sánchez. "The Role of Mutual Guarantee Institutions in the Financial Sustainability of New Family-Owned Small Businesses." Sustainability 11, no. 22 (November 14, 2019): 6409. http://dx.doi.org/10.3390/su11226409.
Full textAbstract:
Small family-owned companies are the most common type of European business structure and are characterised by their orientation to long-term goals. Therefore, they can play an important role in the launching of businesses related to sustainable growth. However, access to finance is difficult for start-ups. Mutual Guarantee Institutions (MGIs) mitigate this problem by facilitating long-term guaranteed loans, but they must assume responsibility for default losses. This paper analyses, as of the end of 2018, the loan default of the portfolio of guarantees formalised by Spanish MGIs with new companies between 2003 and 2012, a period including both economic growth and recession. The objective is to identify the annual evolution and the average global cost of default, as well as the differences in said portfolios according to the purpose of the loan, company size and economic activity. The analysis was developed while considering two scenarios: one determinist, using a ratio method and another stochastic, using an analysis of variance. We found differences in the distribution of defaults for the variables company size and sector of activity. The findings provide relevant information for managers and Public Administrations to improve the distribution of guarantees between Spanish MGIs and public institutions, and their coverage of Small and Medium Enterprise (SME) loan defaults.
38
I Ketut Gede Suardana, I Nyoman Putu Budiartha, and Ni Made Puspasutari Ujianti. "Penyelesaian Kredit Bermasalah dengan Metode Restrukturisasi Pada Koperasi Simpan Pinjam Merta Sari di Denpasar Utara." Jurnal Interpretasi Hukum 3, no. 1 (March 2, 2022): 1–7. http://dx.doi.org/10.22225/juinhum.3.1.4629.1-7.
Full textAbstract:
The existence of cooperative organizations is very beneficial for the economic interests of community members. The purpose of this study was to analyze the causes of non-performing loans in Merta Sari Savings and Loans cooperatives in North Denpasar and to discuss problem solving through restructuring methods at Merta Sari Savings and Loans cooperatives in North Denpasar. The type of research used is empirical law. This study uses a conceptual and sociological case approach. Sources of data are both primary data which is field data (field research), as well as secondary data from the library (library research). The data collection technique used interview techniques at the research location, namely the Merta Sari Savings and Loans Cooperative in North Denpasar. The results of the study explained that the factors that caused the occurrence of non-performing loans in the Merta Sari Savings and Loans Cooperative were several things that became a problem in completing the loan, there were several debtors who experienced a disaster which hit the debtor's business so that the debtor suffered losses and lacked good faith from the debtor so that it was not direct impact on the smooth running of ongoing credit payments and the lack of a management in financial management. In handling non-performing loans, the Merta Sari Savings and Loans Cooperative takes steps to resolve non-performing loans using the credit restructuring method to reduce the level of non-performing loans that occur in the Merta Sari Savings and Loans Cooperative. Credit restructuring is an improvement effort made to meet its obligations
39
Kont, Kate-Riin. "To buy or to borrow? Evaluating the cost of an eBook in TalTech library." Bottom Line 33, no. 1 (January 17, 2020): 74–93. http://dx.doi.org/10.1108/bl-07-2019-0100.
Full textAbstract:
Purpose The purpose of this paper is to find out how much the purchasing and lending of individual electronic books really cost. Additionally, this paper investigates which kind of approach would be cheaper and less time-consuming for library staff as well as library patrons – purchase or short-term loan. Design/methodology/approach This study was conducted at the Tallinn University of Technology (TalTech) Library. This is the only university library in Estonia where the Ebook Central platform is adapted on a large scale. For background information, all statistical data of expenditures and average prices of purchases and short-term loans during April 2013 and December 2018 were calculated and analysed. Through a case study, the time-driven activity-based costing (TDABC) method was used – all activities related to acquisition and lending of eBooks were identified, recorded in detail and analysed. More specifically, the study concerned eBooks offered in the Ebook Central platform and covered purchasing and short-term loan processes, such as receipt of order request, communication with the patron (if necessary) making a purchase or short-term loan, and feedback to the patron. Findings While analysing the results, it appeared there are many additional activities libraries can avoid during the eBook short-term loan process compared to purchasing. As a normality in TalTech library, purchase is always followed by a cataloguing process which increases the time and cost of this process in turn. On the basis of the current study, it can be said that short-term loan is a cheaper way to use eBooks; many activities related to the short-term loan of eBooks take remarkably less staff time and financial resources than eBooks acquisition/purchasing activities. When analysing the literature reviewed as well as collected statistical data, the problem may arise when the decision-maker librarian is not experienced, professional or long-sighted enough to understand the future behaviour of the patron or the usage of the specific eBook. When the usage reaches a certain point, it becomes an indicator of continuing future usage and so it makes sense to purchase the eBook, as the library pays no further charges once an eBook is owned. Originality/value Most studies reviewed by the author are based on the statistical data collected about expenditure, costs, usage, cost-per-use, etc. of short-term loans and purchases. While acquisitions costs, average cost per acquired item per year and cost per usage are easy to identify, it has been difficult to measure associated costs of acquisition, cataloging and circulation. The TDABC methodology seems to be one of the best tools for understanding cost behaviour and refining a cost system for university libraries. Based on the information known to the author, there is no study carried out using the TDABC methodology for analysing costs of eBook programmes.
40
Rinardi, Haryono, Yety Rochwulaningsih, Titiek Suliyati, and Sutejo K. Widodo. "Lumbung Desa in Java: A Credit Institution, Poverty Management, and Financial Problem Solving for Villagers During the Colonial Period." Jurnal Humaniora 29, no. 3 (October 28, 2017): 234. http://dx.doi.org/10.22146/jh.24294.
Full textAbstract:
This paper aims to examine the existence and development of Lumbung Desa or village rice barns as a credit institution during the colonial era. It was expected to be an inspiration and reference to revitalize, design, and develop barns at the village level that contributed significantly to the village welfare at the recent time. Therefore, how and why was Lumbung Desa institution able to develop during the colonial era? How much was its contribution to the village welfare? To examine these questions, the authors used critical historical method and through economical and sociological approach. The result shows that Lumbung Desa was formed and developed by the Dutch to overcome poverty as a strategic issue at the time, especially at village level. The grand design program of Lumbung Desa was to channel loan schemes especially and savings that could be in the form of in cash or rice. It was used to help farmers against the middlemen and moneylenders who were considered as adverse parties for the villagers. Lumbung Desa existed and was managed in many villages of Java during the colonial era. It relied on rural communities with distinctive personal socio-economic relations that brought about both strengths and weaknesses for the institution. However, there were some advantages of Lumbung Desa; first, it provided loans in two types, cash and/ or rice which became major and urgent needs for the villagers; second, its presence in rural areas made farmers become customers and easily access the market; third, its flexibility made it easily transform according to rural community needs.
41
Rinardi, Haryono, Yety Rochwulaningsih, Titiek Suliyati, and Sutejo K. Widodo. "Lumbung Desa in Java: A Credit Institution, Poverty Management, and Financial Problem Solving for Villagers During the Colonial Period." Jurnal Humaniora 29, no. 3 (October 28, 2017): 234. http://dx.doi.org/10.22146/jh.v29i3.24294.
Full textAbstract:
This paper aims to examine the existence and development of Lumbung Desa or village rice barns as a credit institution during the colonial era. It was expected to be an inspiration and reference to revitalize, design, and develop barns at the village level that contributed significantly to the village welfare at the recent time. Therefore, how and why was Lumbung Desa institution able to develop during the colonial era? How much was its contribution to the village welfare? To examine these questions, the authors used critical historical method and through economical and sociological approach. The result shows that Lumbung Desa was formed and developed by the Dutch to overcome poverty as a strategic issue at the time, especially at village level. The grand design program of Lumbung Desa was to channel loan schemes especially and savings that could be in the form of in cash or rice. It was used to help farmers against the middlemen and moneylenders who were considered as adverse parties for the villagers. Lumbung Desa existed and was managed in many villages of Java during the colonial era. It relied on rural communities with distinctive personal socio-economic relations that brought about both strengths and weaknesses for the institution. However, there were some advantages of Lumbung Desa; first, it provided loans in two types, cash and/ or rice which became major and urgent needs for the villagers; second, its presence in rural areas made farmers become customers and easily access the market; third, its flexibility made it easily transform according to rural community needs.
42
Ghosh, Ratan, Kanon Kumar Sen, and Farzana Riva. "Behavioral determinants of nonperforming loans in Bangladesh." Asian Journal of Accounting Research 5, no. 2 (July 17, 2020): 327–40. http://dx.doi.org/10.1108/ajar-03-2020-0018.
Full textAbstract:
PurposeOver the last ten years (2010–2019), the amount of nonperforming loans (NPLs) has been more than tripled in the banking industry of Bangladesh. Thus, this paper explores the behavioral dimensions, which contribute to the NPLs.Design/methodology/approachBy analyzing social, cultural, psychological, political, economic, internal control mechanism and law enforcement contexts of Bangladesh, this study identifies nepotism (NE), moral hazard (MH ), inadequate collateral (IC), poor credit assessment (CA), lack of proper monitoring (LPM), repayment flexibility (RF), business risk (BR) and lending interest rate (LIR) as the catalysts of raising NPLs. Next, a structured questionnaire survey has been performed in Bangladesh among bank officials who closely work in credit risk management, credit supervision, corporate finance and loan recovery department. Finally, partial least squares (PLS) path modeling, a variance-based technique of structural equation modeling, is used in this study as a statistical tool to analyze the data.FindingsThis study finds that moral hazard problem, lack of proper monitoring, inadequate collateral and nepotism have significant positive impact on the raising of NPLs. Unfortunately, this study does not find any statistical significance of poor credit assessment, business risk and repayment flexibility on the NPLs in Bangladesh. Finally, this study reveals that lending interest rate has significant positive impact on the NPLs. Hence, this study concludes that domestic lending interest rate is not lower enough, and so this double-digit interest rate affects negatively to loan repayment.Research limitations/implicationsThis study concludes that moral hazard problem of borrower, lack of board independence, lack of proper monitoring, form and extent of collateral, management lobbying, indecorous personal guarantee by management, dependent-independent directors and nepotism are extensively contributing for occurring NPLs in Bangladesh. These noninstitutionalized stimulators should adequately be scrutinized by regulatory bodies, policy makers and banks. Besides, LIR needs to be decreased in a convenient level for mitigating NPLs.Originality/valueThis study is the empirical evidence of behavioral dimensions related with the growth of NPLs in Bangladesh by taking direct response from knowledgeable bankers.
43
Kleban, Yurii, and Nataliia Horoshko. "IDENTIFICATION OF THE BANK’S DEFAULT CLIENTS BY MACHINE LEARNING METHODS ON THE BASIS OF BINNING." Economic Analysis, no. 31(1) (2021): 133–42. http://dx.doi.org/10.35774/econa2021.01.133.
Full textAbstract:
Introduction. In the current global crisis, the problem of the quality of banks’ loan portfolios is a topical issue. Among the methods of effective credit risk management is the assessment of the borrower’s creditworthiness. Improving the quality of analysis of the strengths and weaknesses of the counterparty will reduce the occurrence of unforeseen risks in the process of conducting credit operations. Given the importance of the role of creditworthiness assessment for decision-making, there is a need to improve and choose a methodology that will ensure the most accurate classification of the bank’s clients. Purpose. The aim of the work is to choose the best method for predicting the probability of default of commercial bank customers based on the analysis of approaches and testing of the built models. Method (methodology). The paper considers methodological approaches to modeling the insolvency of bank customers and determining the probability of repayment of loans based on binning indicators. Also, the credit risk assessment models based on the use of logit and probit regressions, the algorithm of extreme gradient boosting and artificial neural networks are constructed. The comparative analysis of the efficiency of the application of the used approaches is carried out. Results. The obtained results demonstrated the high accuracy of the models and their ability to identify non-creditworthy customers. The findings of the study and evaluation of mathematical approaches can be implemented in the work of banking structures and other credit institutions to spread the amount of problem fees in their loan portfolios.
44
Volkova, T. G. "ORGANIZATION OF THE EMISSION OF THE BONDED LOAN OF THE PENSION FUND OF RUSSIA AS A WAY OF FINANCING ITS BUDGET DEFICIT." Bulletin of Udmurt University. Series Economics and Law 29, no. 5 (September 25, 2019): 564–73. http://dx.doi.org/10.35634/2412-9593-2019-29-5-564-573.
Full textAbstract:
In recent years, revenues and expenditures of the PFR budget are constantly growing, and their growth is about the same magnitude. The decrease in revenues in 2014 was due to a decrease in allocations from the Federal budget, as well as a change in the legislation on compulsory pension insurance, in accordance with which it was decided to send all insurance contributions at the individual rate to finance the insurance part of the labor pension. Since 2014, there has been a stable deficit. According to forecast data, the budget for the next years is also planned to be deficit. Taking into account that the state pension provision is planned and financed by the target method at the expense of allocations, it can be stated that the deficit of the PFR budget is associated with a shortage of incoming insurance contributions for the payment of insurance pensions. This may be due to the following reasons: a significant increase in the number of old-age pensioners with a relatively stable working-age population; insufficient income in the form of insurance contributions (informal wages, shadow business); lack of alternative sources of funding. With the first problem, the Russian Government decided to fight by an unpopular method - to reduce the increase in the number of pensioners by increasing the retirement age. This, in our view, exacerbates the existing problem of public distrust in the pension system in general and in the pension policy in particular. That in turn, among other factors, is the cause of the second problem - the growth of "gray" wages and unpaid insurance premiums. Thus, these problems need to be solved radically, which requires considerable time and a serious elaborated pension policy of the Government of the Russian Federation. It is proposed to use the issue of a pension bond loan as a measure in the operational management of the pension cash gap and strategic management of the budget deficit of the PFR.
45
Grabka, Markus M., and Berenike Bartz. "Einkommen und Kreditschulden privater Haushalte." Wirtschaftsdienst 102, no. 3 (March 2022): 175–80. http://dx.doi.org/10.1007/s10273-022-3129-0.
Full textAbstract:
AbstractThis article describes the development of the needs-weighted net household income of persons in private households in Germany since the year 2000. It also focuses on the presentation of the prevalence and amount of credit debts of private households. The central result is that the share of repayments for loans in Germany has been declining overall since 2000. In particular, the share of households that spend more than 30 % of their household net income on loan repayments has halved over the last 20 years. Despite this overall positive development, there is a risk that the problem of over-indebtedness in Germany could increase again since on the one hand, many self-employed people have suffered high turnover losses due to the containment measures of the coronavirus pandemic, while on the other, the ECB could raise nominal interest rates due to tightened inflation, which would lead to a considerable financial burden for indebted households.
46
MUKHERJEE, SASWATEE. "SEQUENTIAL GROUP LENDING WITH AND WITHOUT GROUP LIABILITY; GRAMEEN I VERSUS GRAMEEN II." Journal of Developmental Entrepreneurship 25, no. 03 (September 2020): 2050017. http://dx.doi.org/10.1142/s108494672050017x.
Full textAbstract:
The paper shows that in absence of any physical collateral, sequential group lending with joint-liability fails to guarantee loan repayment by borrowers because of the coordination problem among the borrowers. The model finds that under certain conditions, profits can be higher under joint-liability group lending if one can ensure peer pressure is adequate to guarantee there is no strategic default, i.e., repayment when the borrower has earned enough to be able to repay. From the lender’s point of view, the individual lending contract may turn out to be a better option than joint-liability group lending under certain circumstances.
47
Sumanti, Elvis Ronald, and Agus Tony Poputra. "ANALISIS KUALITAS PENERAPAN GOOD CORPORATE GOVERNANCE DAN KINERJA PT BANK MANDIRI (PERSERO) TBK." ACCOUNTABILITY 3, no. 1 (June 23, 2014): 14. http://dx.doi.org/10.32400/ja.4937.3.1.2014.14-22.
Full textAbstract:
ABSTRAK Tujuan dari laporan akhir ini adalah untuk menganalisis kualitas penerapan Good Corporate Governance dan kinerja PT Bank Mandiri (Persero) Tbk dengan menggunakan rasio CAMEL. Hasil penelitian ini adalah (i) kualitas penerapan GCG masih berada pada kategori sangat baik walaupun ada penurunan dibanding tahun 2011 (ii) Capital Quality mengalami peningkatan (iii) Asset Quality mengindikasikan adanyakenaikan resiko tapi dapat ditangani dengan baik (iv) Management Quality mengalami peningkatan dalam efisiensi biaya (v) Earnings Quality mengalami peningkatan seperti yang diukur dengan ROA dan ROE (vi) Liquidity berpotensi mengalami gangguan karena adanya kenaikan LDR, tapi potensi masalah telah ditangani dengan baik (vii) Secara keseluruhan kinerja perusahaan yang digambarkan oleh rasio CAMEL pada 2012 mengalami peningkatan dibandingkan tahun 2011. Kata Kunci: Good Corporate Governance, CAMEL, rasio kecukupan modal, rasio kredit yang diberikan terhadap aset produktif, rasio kredit bermasalah, rasio imbal hasil rata-rata aset, rasio imbal hasil rata-rata ekuitas, rasio biaya operasional terhadap pendapatan operasional, loan to deposit ratio ABSTACT This final report aims to analyze the quality of Good Corporate Governance implementation and performance of PT Bank Mandiri (Persero) Tbk by using CAMEL ratio. The findings are (i) GCG implementation quality is still categorized as very good regardless of the slight decline in its composite value (ii) capital adequacy has increased (iii) asset quality indicates an increasing risk yet manageable (iv) management quality shows improvement in cost efficiency (v) earnings quality has shown improvement as proxied by ROA and ROE (vi) liquidity poses a potential problem as LDR rises. Nevertheless, company could manage the risk well. Overall, the bank performance in 2012 is better than 2011 as measured by CAMEL ratios. Keywords: Good Corporate Governance, CAMEL, capital adequacy ratio, loan to productive asset ratio, nonperforming loan ratio, return on asset, return on equity, operational cost to operational revenua ratio, loan to deposit ratio
48
Kan, David. "Liquidity Management and Returns of Shareholders in Quoted Banks of Nigeria." International Journal of Finance and Accounting 1, no. 2 (October 17, 2016): 24. http://dx.doi.org/10.47604/ijfa.136.
Full textAbstract:
Purpose: This study access liquidity management with the aim of determining its effect on returns of shareholders. Ex-post factor design was adopted. Data on ROE, ROA, Log of Sales and EPS were collected from the selected Banks financial statement and Nigerian Stock Exchange statistical bulletin. ROA and ROE proxied performance while EPS proxied returns to shareholders. Liquidity stood for liquidity management.Purpose: The study covered a period of 2000-2014. Unit root was used to test the data for stationarity issue and where there was unit root problem, the data were differenced. Auto-regressive method was also applied to solve auto-regression issues. Linear regression and Pearson correlation were used to test the hypotheses.Results: The result showed that there is no significant relationship between liquidity management and Nigerian quoted Banks performance as well as return of Shareholders.Recommendation; the researcher therefore recommended that policies should be put in place to reduce the cost of loan and encourage investment in Nigeria.
49
Budd, Kate, Darren Kelsey, Frank Mueller, and Andrea Whittle. "Metaphor, morality and legitimacy: A critical discourse analysis of the media framing of the payday loan industry." Organization 26, no. 6 (November 29, 2018): 802–29. http://dx.doi.org/10.1177/1350508418812569.
Full textAbstract:
This study examines the metaphors used in the British press to characterize the payday loan industry in order to develop our understanding of organizational delegitimation. Drawing on critical discourse analysis and theories of moral panic, we show how the metaphors used in the press framed the industry as a ‘moral problem’. The study identified four root metaphors that were used to undertake moral problematization: predators and parasites, orientation, warfare and pathology. We show how these metaphors played a key role in the construction of a moral panic through two framing functions: first by constructing images of the damage and danger caused by the firms and second by attributing agency in such a way that moral responsibility was assigned to the organizations. We also extend the discussion of our findings to explore the ideological dimensions of the moral panic. We develop a critical analysis that points to the potential scapegoating role of the discourse, which served as a convenient moral crusade for the government and other neo-liberal supporters to pursue, while detracting attention away from the underlying socio-economic context, including austerity policies, the decline in real wages and the deregulation of the finance sector. From this critical perspective, payday loan companies can be seen as a ‘folk devil’ through which society’s fears about finance capitalism are articulated, creating disproportionate exaggeration and alarm, while the system as a whole can remain intact.
50
Herlambang, Yudha. "PEMROGRAMAN KOMPUTER DALAM BAHASA QUICK BASIC DALAM PERHITUNGAN FUTURE VALUE DAN PRESENT VALUE PADA BUN GA MAJEMUK SERTA KASUS-KASUS ANNUITET." EKUITAS (Jurnal Ekonomi dan Keuangan) 8, no. 2 (January 13, 2017): 315. http://dx.doi.org/10.24034/j25485024.y2004.v8.i2.2369.
Full textAbstract:
In this article, the author will design the algorithm about computer programming in Quick Basic Language to create the simulation. The purpose of this simulation is making easy and more practical to calculate and solve the problem about Future Value, Present Value and time in Annuitet and Compound Interest . This simulation also has been designed to make solution table which contents the calculation above. The user can execute this computer simulation to solve the problem mentioned above more quickly and more efficiently than manual method. The calculation about Future Value and Present Value is very useful to determine interest allocation per year, and make decision about cashflow per year to pay the loan during several years. The calculation about Future Value, Present Value, Annuity, Compound Interest is very important in financial management and banking applications.