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Journal articles on the topic 'Formal sector banks'
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1
Sultana, Nurun Nahar, and Md Nabir Hossain. "Trends and Challenges of Formal Agricultural Credit in Bangladesh: Enhancing Productivity and Promoting Inclusive Growth." Journal of Economic Studies and Financial Research 4, no. 2 (August 14, 2023): 10–24. http://dx.doi.org/10.46610/jesfr.2023.v04i02.002.
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Empirical studies provide evidence that agricultural finance is crucial for agriculture structural development of an economy. Ensuring the productivity of the agricultural sector is crucially important for the timely availability of agricultural credit. The purpose of this study is to look at what is going on with agricultural credit, especially in the formal sector of banking. Throughout the years, there has been a significant increase in credit disbursed through the official sector, which includes commercial banks and other financial institutions. This is a significant development, as in the past the informal sector was dominant. Non-Governmental Organizations (NGOs), private commercial banks in the area, and foreign banks have all played a role in the provision of agricultural credit to farmers throughout the country. However, despite the increasing flow of credit from formal sector institutions, some challenges need to be addressed. Accessibility remains a concern, particularly for small and marginalized farmers who struggle to access formal credit channels. For formal agricultural credit to have a positive impact, it is necessary to ensure its widespread availability, to provide financial products that are tailored to the needs of farmers, and to implement policies that reduce inefficiency and leakages in the distribution of credit. By addressing these challenges, formal agricultural credit can play a pivotal role in enhancing agricultural productivity, empowering farmers, and driving sustainable economic growth in Bangladesh.
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Mugobo, Virimai, and Misheck Mutize. "The effects of shadow banking on the traditional banking system in Zimbabwe." Journal of Governance and Regulation 4, no. 4 (2015): 605–11. http://dx.doi.org/10.22495/jgr_v4_i4_c5_p5.
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The growth of shadow banks changed the face of banking in Zimbabwe. Their inconsistent product nature and complexity of form has been a cause for concern to regulatory authorities. The interrelationship between their financial intermediary role and that of formal banks has made them good substitutes to formal banking. This study conducts a statistical analysis of the country’s monetary aggregates and the total formal bank loan-to-deposits balances. The findings of this analysis show that the shadow banking system has always been a critical element of the formal banking sector which resulted from market needs and it completes the banking system. The shadow banking system does not pose direct threat to the formal banking system but it was a result of failure to attract savers who found shadow banks as a good alternative.
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Misztal, Piotr, and Marcin Łupiński. "ARE POLISH BANKS STABLE? A SYSTEMIC RISK ANALYSIS." Zeszyty Naukowe SGGW, Polityki Europejskie, Finanse i Marketing, no. 27(76) (June 30, 2022): 68–79. http://dx.doi.org/10.22630/pefim.2022.27.76.6.
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The financial crisis that began in 2007 pointed out deficiencies in policy-makers’ responses to systemic risk. It turned out that not only individual bank insolvencies but also spillovers from negative externalities among entities can cause serious threats to the financial sector. During the last 10 years, many international and national initiatives were taken to strengthen the soundness of the financial system, introducing a macroprudential perspective to financial supervision. However, the recent COVID19 pandemic resulted in a serious negative shock for many economies and their financial sectors. In this paper, using the network model we try to analyse how these recent unexpected developments affected the Polish banking sector with systemic risk. To analyse Polish bank stability we developed a formal stress-testing framework based on the network model that allowed systemic risk identification, modelling and measurement. We tried to integrate analysis of time and the cross-sectional nature of systemic risk.
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MUKHERJEE, SASWATEE. "A COMPARATIVE ANALYSIS OF INTEREST RATES: FORMAL SECTOR BANKS, LOCAL MONEYLENDERS AND MICROFINANCE INSTITUTIONS." Journal of Developmental Entrepreneurship 18, no. 01 (March 2013): 1350007. http://dx.doi.org/10.1142/s1084946713500076.
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This study examines the interest rate differences paid to a bank, a Micro Finance Institution (MFI) and a local moneylender. In a multi-period lending contract, a borrower discounting the future income stream at a constant rate is willing to pay the highest interest rate to the local moneylender, comparatively lower rate to a MFI and the lowest to a formal sector bank. In other words, if the interest rate charged by each of the three lenders is the same, the repayment rate will be highest for a moneylender followed by a MFI and the lowest for a formal sector bank.
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YANG, Mu, and Jielu YAO. "China's Shadow Banking in Spotlight." East Asian Policy 05, no. 04 (October 2013): 65–75. http://dx.doi.org/10.1142/s1793930513000378.
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Shadow banking in China encompasses informal financing activities including both underground lending and the banks' off-balance-sheet credit. The lack of formal credit access prompted the development of China's underground lending. Banks' off-balance-sheet credit refers to various contingent liabilities of commercial banks. Though the Chinese government has taken measures to lower risks posed by shadow banking, it needs to move towards more market-determined interest rates and lower entry barriers to the banking sector.
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Pandey, Dhruba Lal. "Training-performance relationship: A Study of Nepalese Banking Sector." Saptagandaki Journal 8 (October 20, 2017): 31–41. http://dx.doi.org/10.3126/sj.v8i0.18460.
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Training is one of the dominant techniques of management development program in modern organizations. Substantial number of studies on human resource management literature focuses the relationship between training and employee performance with its broader implication on organizational growth and profitability particularly the training effect in gaining sustained competitive advantages. This study aims to test the hypothesized relationship of training and organizational performance in Nepalese banking sector. A survey design approach was applied. Ten commercial banks were selected randomly and 230 respondents from various banks participated in the survey. Likert scale questions were used for getting responses. Multiple regression analysis, ANOVA, and simple descriptive statistics were used for data analysis. All training techniques taken individually and in group (formal, informal) were regressed on turnover growth. The study result confirmed that the both incidence and intensity of training has strong effect on organizational performances particularly the turnover growth. Interestingly the study found that the firms investing predominantly in formal training better performed than those relying on informal training. However, the firm size, organization structure and technology have moderating effect on training-performance relationship stressing for requisites of further research to confirm the cross sectional validity of findings rather than to its early generalizations.The Saptagandaki Journal Vol.8 2017: 31-41
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Fernández-Olit, Beatriz, Gloria González-Sanz, Óscar Sierra-Martín, and Elena Ortega-Diaz. "Financial Inclusion as Enabler for Innovation in Banking." Foresight and STI Governance 16, no. 3 (September 20, 2022): 95–105. http://dx.doi.org/10.17323/2500-2597.2022.3.95.105.
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Using evidence from Spain, this study assesses the readiness of the banking sector of the EU to introduce technological and social innovations to implement the European policy of financial inclusivity. Despite the evident benefits for banks in terms of enhancing legitimacy and improving consumer knowledge and loyalty, mostly banks at present merely comply with the formal aspects of financial inclusion regulation, but are not going further in terms of technical or social innovation, using compliance to avoid the "stick" of regulation. In contrast, a review of the banks’ own corporate social responsibility strategies shows a higher level of commitment and innovation in terms of financial inclusion. Based on the analysis of institutional factors that determine the involvement of banks in the inclusivity policy, recommendations are proposed for adjusting development strategies in order to combine the efforts of the public and private sectors in the provision of public services.
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Ecubay, Feven, and Aitaa Kilimvi. "Implications of Informal Money Transfer Systems on Kenya’s Financial Sector." American Journal of Finance 8, no. 2 (July 1, 2023): 13–27. http://dx.doi.org/10.47672/ajf.1520.
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Purpose: In Kenya, the informal money transfer system is widely used by its citizens, allowing them to make quick and easy payments across long distances. This system has bridged the gap between those with limited access to formal banking services, allowing them to make transactions without relying on a formal banking institution. While there are numerous benefits to using this type of system, it can also present potential risks to the economy and financial sector in general. This paper examines the implications of the informal money transfer system in Kenya, focusing primarily on its effects on financial sector development, financial inclusion, and risk management practices.
Methodology: A qualitative research approach was adopted for this study to understand the complexities and nuances involved in this type of financial transaction. Secondary data was obtained from surveys conducted by government agencies such as the Central Bank of Kenya (CBK). Other sources included reports on informal money transfers such as web-based searches on informal money transfer services, and databases used by banks and other government departments related to finances. Legal and regulatory frameworks that influence the use and activities of informal money transfer systems in Kenya were also be included.
Findings: The findings showed that informal money transfer systems provided much-needed access to finance for many individuals excluded from formal banking services, leading to increased economic development opportunities. The findings further uncovered that the drivers of informal money transfers include low-income levels, traditional banks limited geographic reach, limited capital, and a lack of trust in formal banking institutions. As such, informal money transfers aided the velocity of efficient and cheaper cross-borders and cross-regions remittances. It was however demonstrated that although informal money transfers bring benefits to their users, it also carries considerable risks.
Recommendations: It is recommended that the current regulatory framework governing informal money transfers needs to be updated to protect consumers from fraud and theft while still allowing them to access the necessary financial resources for their economic endeavours.
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Zaccheaus, JACOB, NWALA, Nneka Maurie, and SUBERU Abubakar Adagu. "Effect of Formal Financial Sector on Financial Deepening in Nigeria." International Journal of Economics, Business and Management Research 07, no. 07 (2023): 70–90. http://dx.doi.org/10.51505/ijebmr.2023.7706.
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This study examined the effect of the formal financial sector on financial deepening in Nigeria for the period 2012Q1 to 2022Q3. The specific objectives of the study were to investigate the effect of deposit money bank development on financial deepening in Nigeria; to assess the effect of the insurance industry development on financial deepening in Nigeria; to determine the effect of stock market development on financial deepening in Nigeria. The study adopted an ex-post facto research design from the quarterly time series data generated from the Central Bank of Nigeria statistical bulletin on deposit money bank development, insurance industry development, stock market development, and financial deepening. The data were analysed using the Johansen co-integration test and Fully Modified Ordinary Least Squares estimation. The findings showed that both deposit money bank development and insurance industry development have significant effects on financial deepening in Nigeria, but stock market development has an insignificant effect on financial deepening in Nigeria. It was recommended that Nigerian deposit money banks should employ strategies that will develop the industry, especially investing in technology and Artificial Intelligence (AI), such that most of its banking products and activities will be carried out seamlessly in the comfort of the customers. Furthermore, National Insurance Commission should create a regulatory framework that encourages the establishment of new insurance companies, promote transparency and accountability in the industry, and ensure that insurers have adequate capitalization. Finally, the Nigerian Exchange Group need to do more in getting companies listed.
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Herliana, Sri, Acip Sutardi, Qorri Aina, Qonita Himmatul Aliya, and Nur Lawiyah. "The Constraints of Agricultural Credit and Government Policy Strategy." MATEC Web of Conferences 215 (2018): 02008. http://dx.doi.org/10.1051/matecconf/201821502008.
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Low access to credit in the agricultural sector is also caused by problems of agricultural sector actors (especially farmers) and financial institutions. Farmers are still having difficulty in accessing credit (accessibility and unbankable) and the limited financial institutions that channel credit to the agricultural sector. Therefore, the government must issue a policy in growing the agricultural sector, especially in anticipation of access credit constraints by farmers. The agricultural sector as a high-risk business, therefore formal institutions are less interested in financing the agricultural sector on the grounds of high transaction costs, asymmetric information, low profits, lack of collateral, education of farmers is relatively low. In addition, most banks do not want to finance agriculture due to fluctuating production and uncontrolled price risk. While the constraints of the farmers in obtaining formal credit is a complex procedure, there should be collateral as well as high payment delay fees, long distances and less information about capital.
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Sinha, G. K. "DIGITAL FINANCIAL INCLUSION AND INCLUSIVE DEVELOPMENT OF INDIA." BSSS Journal Of Commerce 15, no. 1 (June 30, 2023): 61–66. http://dx.doi.org/10.51767/joc1508.
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With the prospect of reaching billions of new customers, banks and a widening array of non-banks have begun to offer digital financial services for financially excluded and underserved populations, building on the digital approaches that have been used for years to improve access channels for those already served by the formal financial sector. Digital financial services — including those involving the use of mobile phones — have now been launched in more than 80 countries, with some reaching significant scale. Digital financial inclusion involves the deployment of the cost-saving digital means to reach currently financially excluded and underserved populations with a range of formal financial services suited to their needs that are responsibly delivered at a cost affordable to customers and sustainable for providers.
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C BHARGAVA. "A Study on Customer Awareness and Usage of Payments Bank and Neo banks in Chennai City." Journal of Development Economics and Management Research Studies 10, no. 16 (2023): 205–14. http://dx.doi.org/10.53422/jdms.2023.101627.
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The banking and financial sector has evolved over the years to meet the changing needs of the economy and industries, leading to the birth of innovative financial instruments. The Reserve Bank of India introduced payment banks to promote digital, paperless, and cashless banking in the country. Payment banks offer basic banking services to unbanked and underbanked individuals, particularly migrant workers and those from lower-income households, and bring them into the formal economy. The trend towards digital payments and net banking has increased, especially after the impact of demonetization and the COVID-19 pandemic. Neo banking is a fintech-powered concept that operates entirely in the virtual space. Technology has become crucial to satisfy customer demands, leading to the emergence of payment banks and neo banks. Despite their growing importance, research on payment banks and neo banks in India is limited. This paper aims to study customer awareness and usage of payment banks and neo banks in Chennai city.
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Ahmad Shakir, Imran, and Tariq Iqbal Khan. "Green Human Resource Management Practices: A Study on The Banking Sector of Pakistan." International Journal of Economics and Business Issues 2, no. 2 (September 10, 2023): 22–32. http://dx.doi.org/10.59092/ijebi.vol2.iss2.33.
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This study focuses on the importance of Green Human Resource Management (GHRM) practices in managing environmental concerns. We collected data from 204 respondents across seven sample banks using a semi-structured questionnaire and analyzed it using the SPSS software. Our findings suggest that although all selected banks are aware of ecological issues and try to implement green practices in their regular activities, few have a formal green policy. We also identified challenges organizations face in implementing GHRM practices, including outdated technology, high initial investment, ineffective policies, lack of community and government support, and a general lack of environmental consciousness. Our study highlights the vital role of the human resource department in creating a green workplace that influences green recruitment and selection, green training and development, green reward and compensation, green performance management, green employee involvement, and environmental sustainability.
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Hardana, Andrean Eka, Destyana Ellingga Pratiwi, Dian Islami Prasetyaningrum, Sugeng Riyanto, and Mangku Purnomo. "Study of microfinance farmer to make decision for formal and informal credit." E3S Web of Conferences 306 (2021): 02050. http://dx.doi.org/10.1051/e3sconf/202130602050.
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The study aimed to identify the microfinance implementation by horticultural farmers and analyze the factors influencing the horticultural farmers’ decision to choose the financial institutions. The research location was carried out in two areas, namely (a) Wonomulyo Village, Poncokusumo Subdistrict, Malang Regency, dan (b) Pacet Village, Pacet Subdistrict, Mojokerto Regency. The sample determination was carried out using the Slovin formula using the proportional stratified sampling method. The total sample was 160 farmers. Descriptive and logistic regression analysis (logit) were used to answer the objective of the study. Formal institutions assigne1d to channel the funds include government banks and private banks. Informal institutions that carried out micro-credit funds were the private sector or institutions from the farmers themselves. The majority of farmers knew that the rate level of formal financing sources was lower, but the administrative procedures were considered problematic. The regression's results showed that the factors influenced the decisions of Horticulture farmers to take micro-finance access, including education, length of business, interest rate, and loan amount.
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Tedyono, Rico, Muhammad Madyan, and Iman Harymawan. "The Leadership Is Given Factors: Fintech Impact in Rural Bank Performance." RSF Conference Series: Business, Management and Social Sciences 3, no. 3 (September 5, 2023): 440–45. http://dx.doi.org/10.31098/bmss.v3i3.708.
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The small business enterprise sector (SME) has a significant role in the development of the national economy. However, the existence of small businesses is inseparable from a number of problems they face, namely the problem of capital and the difficulty of access to sources of financing from formal financial institutions, especially banks, and the small opportunity to get business opportunities. Rural Banks have a very important role in overcoming capital problems faced by businesses in Indonesia so researchers are motivated to conduct research on Rural Banks in applying financial technology. The Sources of data in this study come from observations and interviews conducted using semi-structured interviews to obtain the necessary information on whether the directors of Rural banks are able to adapt to fintech. With this research, it will answer how the application of fintech will improve the performance of Rural banks through aspects of individual performance and Rural bank performance itself.
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Peebles, Gustav. "REHABILITATING THE HOARD: THE SOCIAL DYNAMICS OF UNBANKING IN AFRICA AND BEYOND." Africa 84, no. 4 (October 22, 2014): 595–613. http://dx.doi.org/10.1017/s0001972014000485.
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ABSTRACTIf a thriving capitalist economy relies on the innumerable small deposits of savings that local people place in banks, then ‘unbanking’ represents a threat to just such an economy. And yet, across the globe, billions remain outside the formal banking sector, thereby reducing the ability of formal banks to set these savings in motion. This unbanking has been the subject of many reports and studies by economists, corporations and non-profit organizations, but unbanking never seems to diminish. Indeed, by all accounts, it continues to thrive. In order to offer an alternative explanation for this phenomenon, the author revives an important, age-old distinction between hoarding and saving, while also providing an anthropological survey of alternative modes of saving in Africa. In so doing, the author argues that the critics of unbanking may be ignoring the ways in which banking and unbanking are tied up with subject formation.
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Rasheed, Burhan, Zohair Farooq Malik, Amer Shakeel, and Syed Taha Fraz Haider Kazmi. "Evaluating the State Laws and Regulations of Microfinance Institutions (MFIs) in Asia: A Comparative Study." Audit and Accounting Review 1, no. 2 (December 1, 2021): 91–110. http://dx.doi.org/10.32350/aar.12.05.
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This study evaluates the laws and regulations of Microfinance Institutions (MFIs) in Asia. It compares the regulatory framework of MFIs with institutional development and macroeconomic perspective and concludes that central banks control formal MFIs by applying legislation. Conversely, semiformal MFIs are regulated and controlled by a government body or an apex organization. Unfortunately, informal MFIs are not regulated at all. It was observed that even though regulations are effective; however, the ownership structure, governance, and internal controls are not adequate and appropriate for all types of MFIs. Since the existing rules do not apply to all MFIs, this study recommends formulating special prudential regulations for MFIs, similar to the ones used in the banking sector. Formulating regulations should be the responsibility of the government, central banks, private sector, and the donors. Furthermore, regulators should develop a separate team of qualified members to monitor the regulatory environment, protect the interest of depositors and donors, and encourage MFIs to attain sustainability as well as outreach.Keywords: central banks, Microfinance Institutions (MFIs), prudential regulations, regulatory bodyJEL classifications: G2, G21, G28
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Yeo, Nannein. "DEVELOPMENT OF FINANCIAL INSTITUTIONS AS A FACTOR OF INCLUSIVE GROWTH IN THE REPUBLIC OF CÔTE D’IVOIRE." EKONOMIKA I UPRAVLENIE: PROBLEMY, RESHENIYA 8/2, no. 139 (2023): 68–75. http://dx.doi.org/10.36871/ek.up.p.r.2023.08.02.007.
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There are important limitations and shortcomings in the financial sector of African countries that hinder economic growth and development. Consequently, further improvements in the financial sector at the national and regional levels are needed to unlock the potential for inclusive growth and sustainable development of the Republic of Côte d’Ivoire. The results of the study showed that the banking structure of the country excludes significant segments of the population from households and enterprises, since it provides only a narrow set of formal financial markets, institutions and instruments. In particular, the need for long-term financing and sectoral investment in industry, agriculture and infrastructure development is not being adequately met. As promising areas for the development of financial institutions of the Republic of Côte d’Ivoire, it should be highlighted: the expansion of the financial ecosystem by strengthening development banks, non-bank financial intermediaries, capital markets and Islamic financial institutions; the development of microfinance and its integration into the official financial system; strengthening the banking sector through the capitalization of local banks.
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Madhuri, A., and K. Raji Reddy. "Equity Analysis Of It & Banking Sector At Monarch Networth Capital Ltd." Think India 22, no. 3 (September 25, 2019): 329–35. http://dx.doi.org/10.26643/think-india.v22i3.8259.
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In the genuine climate’s unending phylogeny Indian tuppenny, amidst the opposite profitable institutions, the apportionment digs has adorn assent to of a mischievous unstintingly-spring of possessions for Eternally majority assortment of investors ranging foreigner beamy institutional investors to condensed distinction punter . Weird obsolete cycle forthwith second-forswear chap worn to vestments reward ripsnorting in helter-skelter daring and greatly loyal solvent institutions and apparatus ventilate in and Formal area Banks, Administration Restriction and policies etc., today’s investors attack forth-ranging get ahead hoard altercation is a ingenious largely-spring of earning quicker and revenues on their investments as compared to the tight-fisted warranted in ordinary subsidy methods.
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Maity, Sudarshan, and Tarak Nath Sahu. "Role of public sector banks towards financial inclusion during pre and post introduction of PMJDY: a study on efficiency review." Rajagiri Management Journal 14, no. 2 (July 8, 2020): 95–105. http://dx.doi.org/10.1108/ramj-03-2020-0009.
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Purpose An inclusive financial system is essential to develop the country’s economy. A massive shift in financial inclusion was observed by the initiative of government to include financially excluded into the formal financial system by launching Pradhan Mantri Jan Dhan Yojana (PMJDY) in 2014. This paper aims to attempt to examine the efficiency of public sector banks in financial inclusion during pre and post introduction of PMJDY. Design/methodology/approach The data envelopment analysis is used to measure the efficiency of the banks towards financial inclusion for the periods, 2010–2011 to 2013–2014 as pre-introduction and 2014–2015 to 2017–2018 as post-introduction phase. For this study, supply-side parameters of financial inclusion considered as input variables and demand-side parameters as output variables. Findings The study finds that overall average efficiency towards financial inclusion increases significantly during post-phase, though all the public sector banks are not performing equally. There is a significant variation in efficiency level between them and even between the two periods. Further, there is a huge opportunity to enhance technical efficiency with the same quantity of input which will help to achieve the target of financial inclusion. Originality/value A comparative study between the two phases has taken place to analyse the impact of the scheme on the technical efficiency of banks. One of the notable innovativeness of this study is that, unlike most of the previous studies which are mostly theoretical and conceptual, the present study may place itself as a unique inquiry in the domain of efficiency review of public sector banks during pre and post introduction of PMJDY.
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Poswal, Yasser Ibrahim, and Farida Siddiqui. "Financial Inclusion in Jammu & Kashmir: An Assessment of Pradhan Mantri Jan Dhan Yojana." Saudi Journal of Economics and Finance 6, no. 9 (September 4, 2022): 294–300. http://dx.doi.org/10.36348/sjef.2022.v06i09.001.
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There has been an intensive debate about the improvement in accessibility of financial services through PMJDY in India. After almost eight years of its inception, there is still a significant section of population, particularly in rural and unbanked part of the country which is not linked with the formal financial system. This paper attempts to assess the performance of PMJDY scheme, generally in India and particularly in Jammu and Kashmir. The public sector banks are the dominant players in implementing this scheme across the country, but in Jammu & Kashmir, private sector banks are leading from the front. Except the account opening process, other financial facilities being provided under this scheme are still not fully accessible throughout the region. There is a significant number of accounts under this scheme which are dormant and having zero balances. There is need to accelerate the financial literacy programs to financially educate the beneficiaries for better usage of financial services.
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Abate, Misrak Tesfaye, and Ratinder Kaur. "BANKING SECTOR IN ETHIOPIA: ORIGIN AND PRESENT STATE." EPH - International Journal of Business & Management Science 9, no. 2 (April 19, 2023): 1–13. http://dx.doi.org/10.53555/eijbms.v9i2.134.
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Ethiopia’s formal (regulated and controlled) financial sector comprises banks, insurers, microfinance institutions, and capital goods finance companies. The banking sector in Ethiopia is an integral part of the financial sector in particular and the economy as a whole. Its contribution to the country's macroeconomic stability and growth objectives is evident. This research paper aims to provide insight into the origin and development of the banking sector in Ethiopia, as well as its current structure, regulatory framework, performance, and status quo. The study is entirely based on the review of literature from various secondary sources. The paper concludes that even if the banking sector has witnessed a sea change during the past three decades, its overall achievement lags far behind that of several other Sub-Saharan African countries, the rest of the world, and international standards. However, the paper indicates that there is a huge growth potential for the banking business in Ethiopia.
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Vržina, Stefan. "Disclosure of tax risk in financial statements: The case of banks in the Republic of Serbia." Bankarstvo 50, no. 4 (2021): 10–35. http://dx.doi.org/10.5937/bankarstvo2104010v.
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An increasing number of companies has been paying attention to tax risk in the last decade. Tax risk may arise as a result of unintentional employee mistakes when calculating tax burden, but also as a result of implementation of risky tax avoidance strategies. Research in this paper is conducted in order to study the determinants of disclosure of tax risk in banks in the Republic of Serbia. Therefore, the research captured twenty-six banks in the period between 2018 and 2020. Results show that most banks disclose information on tax risk, though they are only formal and generalized. In addition, there is identified a significant number of banks that disclose the information on tax risk in a similar manner. Logit and probit regression models showed that less profitable banks and those with lower corporate income tax burden disclose more information on tax risk. Banks that are majority domestically owned also disclose more information on tax risk. In addition, research results are robust to important changes of the research model. Research results may be of interest to many interest groups, in particular to banks' management and employees in the financial reporting sector, national tax authorities, auditors of financial statements and national bodies for accountants' certification.
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Narayanan, Sudha, and Nirupam Mehrotra. "Loan Waivers and Bank Credit: Reflections on the Evidence and the Way Forward." Vikalpa: The Journal for Decision Makers 44, no. 4 (December 2019): 198–210. http://dx.doi.org/10.1177/0256090919896873.
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Executive Summary In the past decade, farm loan waivers have become a policy instrument to alleviate the financial distress of farmers. Despite agreement on the theoretical rationale for such debt forgiveness and its deep contextual relevance, many fear that in the long run, loan waivers might vitiate the repayment culture in the farm sector and undermine the financial status of banks. At present, critiques of large-scale loan waivers rest on limited evidence. This article reviews and synthesizes existing research and available data on the implications of loan waivers, especially for the flow of credit to farmers from banks. On most of the issues, such as farmer well-being and repayment culture, there seems to be mixed evidence on the consequences of debt waivers. Credible evidence on macroeconomic implications is limited, mainly on account of methodological challenges. This article concludes that even if loan waivers are an inappropriate strategy to support farm incomes in sustainable ways, the wide-ranging negative impacts on the formal banking sector are perhaps overstated. A more fruitful approach would be to focus on whether loan waivers can be designed to reduce the possible negative consequences for the formal banking system as well as for macroeconomic system. The article identifies three possible instruments—loan insurance products that will help banks cope with the consequences of large-scale defaults. Second, to explore the creation of a distress fund that will cushion state finances, should there be a need for debt waivers. Third, it would be useful to consider the operation of debt relief commissions to have an ongoing process for debt waivers.
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Ratnam, Vijayakumaran, and Sunitha Vijayakumaran. "Institutional reforms and development of corporate governance and banking system in China." Asian Journal of Finance & Accounting 9, no. 2 (December 31, 2017): 352. http://dx.doi.org/10.5296/ajfa.v9i2.12382.
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The objective of this paper is to review China’ instructional reforms and evaluate its effectiveness based on available empirical evidences with special reference to Chinese corporate governance system and financial system. As part of the wider economic reform initiated in the late 1970s, in the 1980s, the Chinese government adopted various measures aimed at reforming state owned enterprises (SOEs). These mainly include managerial autonomy, a management responsibility system, corporatization and partial privatization of former SOEs. In addition, the Chinese government took various steps to enhance the efficiency of the banking sector. The analysis shows that China’s efforts to improve the corporate sector through its own unique gradual and piecemeal approach has been successful in terms of introducing a formal governance structure for the corporate sector, liberalizing its financial sector, improving governance of state owned banks, and most importantly, developing the private sector as the back bone of the economy.
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Alińska, Agnieszka, and Izabela Czepirska. "The Development of Payment Services as an Example of Disintermediation in the Financial System." e-Finanse 12, no. 2 (June 1, 2016): 60–73. http://dx.doi.org/10.1515/fiqf-2016-0144.
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Abstract The reasons for disintermediation in the financial systems can be found on both sides of supply and demand. This progressing phenomenon is a result of numerous changes in the post-crisis financial sector landscape. In this article, the authors analyse the underlying causes of the shift away from formal financial institutions in the area of financial services as well as present the Polish payment services market as an example of banks’ receding role in the traditional intermediation between market players.
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Pomerai, Matilda, and Sailas P. Mangwende. "Nature of Rural Women’s Financial Exclusion in Zimbabwe." International Journal of Research and Innovation in Social Science VIII, no. IV (2024): 1770–76. http://dx.doi.org/10.47772/ijriss.2024.804126.
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Most rural women in the developing world are financially excluded from the formal financial sector. The purpose of this paper is to give an overview of rural women’s financial exclusion in developing nations. Causes of rural women’s financial exclusion is discussed. This helps governments, agro-based companies, banks and development partners to understand the extent of rural women’s financial exclusion so that measurements to address such issues can be made. A desk research was used to carry out the study. Most literature show that rural women in Zimbabwe do not have the Know Your Customer (KYC) requirements needed by banks and financial institutions to open bank accounts and access loans for income generating projects. Banks do not want to relocate to rural areas because rural women are not an attractive clientele due to the feminisation of poverty rampant in rural areas. In most developing countries, just as is the case in Zimbabwe, there is a bias towards urban areas in the financial sector. Rural women do not own the acceptable collateral. Men own most of the acceptable collateral. There are also gender inequalities in the access to financial services in rural areas besides women constituting the largest population in world’s rural areas.
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Timsina, Neelam, and Radhe Shyam Pradhan. "Effects of Bank Lending on Economic Growth in Nepal." Journal of Advanced Academic Research 3, no. 3 (February 28, 2017): 53–75. http://dx.doi.org/10.3126/jaar.v3i3.16810.
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This study examines the effects of commercial bank lending on economic growth in Nepal. The study has conducted correlation and regression analysis using panel data of twenty four commercial banks during the period of 1996 -2015. The empirical results show that bank lending has positive effects on the economic growth in Nepal. The study implies that the policy makers should focus their attention more on the development of formal sector financing, adequate development of modern banking sector, development of efficient financial market and infrastructures and establishment of interest sensitive investment environment to increase the bank lending which is instrumental to promote economic growth in Nepal.Journal of Advanced Academic Research Vol. 3, No.3, 2016, page:53-75
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Brůna, Karel, and Naďa Blahová. "Systemic Liquidity Shocks and Banking Sector Liquidity Characteristics on the Eve of Liquidity Coverage Ratio Application - The Case of the Czech Republic." Journal of Central Banking Theory and Practice 5, no. 1 (January 1, 2016): 159–84. http://dx.doi.org/10.1515/jcbtp-2016-0008.
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Abstract The paper contains an analysis of the economic and regulatory concept of bank liquidity in the context of systemic liquidity shock. A formal model analysis shows that the application of liquidity coverage ratio (LCR) based on Basel III will lead to a significant adaptation of banks liquidity management. LCR causes a change in bank’s liquidity allocation and funding to be less effective and more costly and restrictive for providing credits comparing with economic determinants. It is demonstrated that the application of LCR underestimates actual liquidity position of a bank and leads to allocation ineffectiveness. The empirical part contains simulation of impacts of systemic liquidity shock on the banking sector’s ability to withstand the unfavourable credit shock while solvency is maintained. The results confirm the robustness of the Czech banking system ensuing from the systemic surplus of liquidity, high volume of bank capital and its high profitability. The estimations of the VAR model show that the relations between liquidity characteristics of banks, sources of aggregate liquidity shock, interbank market illiquidity and the credit facilities of the Czech National Bank are relatively weak, supporting the conclusion that the banks face liquidity shocks of non-persistent character.
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NAILI, Hassiba, and Mohammed HABBAR. "USING FINANCIAL TECHNOLOGY APPLICATIONS AND ARTIFICIAL INTELLIGENCE IN DEVELOPING THE BANKING SECTOR." RIMAK International Journal of Humanities and Social Sciences 05, no. 02 (March 1, 2023): 527–41. http://dx.doi.org/10.47832/2717-8293.22.31.
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The trend towards financial technology and artificial intelligence has become the dominant feature in providing banking services and managing banking activity, as this modern trend imposed by the technological revolution in recent years has allowed radical changes in the structure of banking services and customer interaction patterns, and there fore most banks seek to invest in Applications of financial technology and artificial intelligence and entering into partnerships with merging companies to improve their competitiveness and increase reliance on modern technology in providing banking services, and accordingly this research paper aimed to shed light on what financial technology and artificial intelligence are and highlight the role of their applications in developing the banking sector accredited. This is based on the descriptive approach because it is commensurate with the nature of the subject being taught. The study concluded that the use of artificial intelligence has helped to develop banks' performance by improving the quality of banking services which is provided to customers, reducing transaction costs and increasing efficiency due to the rapid response to customer requests, it may take a long time, and it may sometimes be impossible for humans to analyze all data It also contributed effectively to the availability of financial services to marginalized and excluded groups in the formal financial systems. The study also concluded that financial technology can make banking services faster, cheaper, and more secure, transparent and available
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AGUEY, Segnon, Yézidou ALI, and Akoété Ega AGBODJI. "Effets de la stratégie de relance post-covid-19 de la BCEAO sur les agrégats économiques au Togo." Revue Internationale des Économistes de Langue Française 6, no. 2 (2021): 183–215. http://dx.doi.org/10.18559/rielf.2021.2.9.
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The consequences of the anti-COVID-19 barrier measures have been damaging to economic activity. In order to stimulate economic recovery, BCEAO is proposing a 20% reduction in its target rate (2.5% to 2%). Our study offers a pre-assessment of the effects of this monetary policy on economic aggregates in Togo. Using a DSGE model based on the restrictions of the informal sector on access to credit, we analyze the transmission channels of the cut in the BCEAO target rate to the economy. The 20% reduction in the target rate generates a drop in the lending rate for commercial banks about nearly 3%, which stimulates investment for an additional 2% effect on GDP growth. However, growth will be mainly drained by the formal sector, the main beneficiary of the additional credit. The informal sector will even be negatively affected, assuming the substitutability of factors between sectors of activity. There is a 0.9% drop in informal employment and a 0.7% reduction in informal production. The BCEAO's recovery strategy could allow the West African countries to initiate a structural change for a better development different from the strong informal propensity one.
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Olawumi, Ojo Rufus, and Sola Ogungbenle. "A Dynamic Panel Analysis of Drivers of Output Growth in the Nigerian Manufacturing Firms." European Scientific Journal, ESJ 14, no. 19 (July 31, 2018): 222. http://dx.doi.org/10.19044/esj.2018.v14n19p222.
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Regardless of the efforts of government to revamp the manufacturing sector in Nigeria, the sub-sector has remained ineffective with dwindling output and there have been consistent fluctuations in the share of the manufacturing sub-sector to Gross Domestic Product (GDP) in Nigeria. This study therefore examines the determinants of output growth in the Nigerian formal manufacturing sub-sector. The study made use of fifty (50) formal manufacturing firms listed in the Nigerian Stock Exchange Data for the formal manufacturing firms were sourced from the Nigeria Stock Exchange (NSE) Fact Book and the Central Bank of Nigeria Statistical Bulletin 2014. The estimated models in the study were specified following the works of Sangosanya (2011). The study employed the dynamic panel data analysis (the dynamic models of the Generalized Method of Moments (GMM) and the Systemic Generalized Method of Moments (SYSGMM)) for the Nigerian formal manufacturing sub-sector. The study showed that the coefficient of operating efficiency in the GMM&SYSGMM estimate, i.e. -0.0349214 and -0.0199787 respectively showed a negative relationship between OPREF and firms’ growth. This implied that information supplied by firms about their growth indicators is at variance with their performance. This further speaks volume of the weakness of regulatory agencies to effectively monitor the performance of manufacturing firms in Nigeria. Also, the study showed that exchange rate, bank efficiency and managerial efficiency have significant positive relationship with output growth of firms. Also variables such as degree of financial development, energy infrastructural facilities and government regulations and policy have significant negative impact with output growth of firms in Nigeria. Findings revealed that all the explanatory variables identified in the study are strong determinants of firm growth in the Nigerian manufacturing sub-sector. The study recommended among others that government should formulate and implement policies that would hinder formal manufacturing firms from publishing fake report of their growth. Also, government should formulate and implement policy measures that would make imported goods more expensive and appropriate monetary policies that would make the cost of borrowing from banks (interest rate) affordable should be priotised in Nigeria.
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Ghosh, Taniya. "The Sectoral Impact of Monetary Policy Transmission in India: A Panel VAR Approach." Emerging Economy Studies 5, no. 1 (April 5, 2019): 63–77. http://dx.doi.org/10.1177/2394901519826705.
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A structural panel vector autoregression (VAR) analysis is done to analyze the impact of monetary policy shock on people associated with various occupations. To understand the efficacy of bank lending channel, it is important to capture the differential occupation-wise effect of interest rate. The article finds that due to a monetary policy shock, the impulse responses capture the movement of loans in theoretically expected direction in most cases. The Granger causality tests successfully establish the long-run relationship between loans and interest rate. Also, the empirical results of good-performing states support the direct link between greater financial penetration and higher economic activity. Monetary policy shock significantly affects the lending behavior in all the sectors, except in agriculture and personal loans sector. The weak link of transmission in these sectors is mainly attributed either to lack of access to formal credit or a preference to informal credit sources over banks.
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Adil, Fareeha, and Abdul Jalil. "Determining the Financial Inclusion Output of Banking Sector of Pakistan—Supply-Side Analysis." Economies 8, no. 2 (May 28, 2020): 42. http://dx.doi.org/10.3390/economies8020042.
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Financial inclusion is the process of including the people who lack formal financial services. The concept of financial inclusion emerged globally in the times of millennium and is defined as the availability and usage of formal financial services. It essentially facilitates economic growth; the financially included individuals can invest in business, education, and entrepreneurship, which can pave way to poverty alleviation and economic development. In the context of Pakistan, a developing economy of South Asia, the financial landscape presents a grim picture of financial inclusion where only 16 percent of the population is financially included. Despite the current focus of policies and regulations devoted to enhancing access to finance in Pakistan from the supply side, the current state of financial inclusion is limited. Therefore, this study investigates the financial inclusion process for Pakistan from the supply side. We analyze the supply-side dimension of access by employing econometric technique of autoregressive distributive lag (ARDL) and using time series data of banking sector of Pakistan. Our empirical findings suggest that the greater the size, geographic outreach, and demographic outreach of the banks, the greater the contribution to the financial inclusion. Additionally, improvement in soft consumer loans and increase in small-sized advances reinforces the financial inclusion process.
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Irji'Sa'Adi, M., and Sri Harnani. "Human Capital, Income and Job Opportunities in Indonesia." SPLASH Magz 1, no. 2 (April 21, 2021): 36–39. http://dx.doi.org/10.54204/splashmagzvol1no1pp36to39.
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This study used interviews with 150 online informal workers in Jakarta. 80% of the respondents we interviewed were high school graduates and 20% did not have a high school diploma. Based on the results of interviews, 70% of respondents who had high school certificates had worked in the formal sector and chose to work in the informal sector and respondents who did not have high school certificates had never worked in the formal sector. To anticipate the interview results, we collected secondary data from world banks and the Indonesian Central Bureau of Statistics regarding data on unemployment in Indonesia, high school graduation and high school labor demand. Then we process all data in the form of an employment opportunity index which is calculated based on the supply and demand for labor where the supply of labor is the number of unemployed and graduated high school and the demand for labor in the demand for labor is high. school level. The income index is obtained from interviews with 150 informal workers by taking into account income while working in the formal sector, income in the informal sector and investment in education in the form of education from primary to final education. The human capital index is obtained from the difference in income and forecasting the difference in income of respondents who have a high school diploma and those who do not have a high school diploma. We use average data or all the data obtained is averaged based on a group of variables determined based on literature review and background and time series, then the regression is carried out using the moving average autoregression method. We find that human capital and job opportunities have positive relationship with income.
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Purnama Putra, Hijrah, Enri Damanhuri, and Emenda Sembiring. "Integration of formal and informal sector (waste bank) in waste management system in Yogyakarta, Indonesia." MATEC Web of Conferences 154 (2018): 02007. http://dx.doi.org/10.1051/matecconf/201815402007.
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The change of waste management paradigm becomes an important thing to do, as a step adaptation to the increasing rate of waste generation every year in Indonesia. 100% management target has been divided into two parts, namely the reduction (30%) and waste handling (70%). Reductions focus on source limitation and 3R program optimization, whereas handling involves collecting and final processing activities. However, the current level of waste reduction is still very low (12%), the government made various efforts to increase it, one of its with the waste bank program. DIY province as a pioneer in the concept of waste bank continues to develop to increase the participation of the community, from 166 locations in 2013, increased to 792 locations in 2017 and 495 of its as the waste bank (62.5%). Average waste bank with 43 customers, able to manage the waste up to 2,078,064 kg/month, with the data can be estimated the amount of waste that can be managed in the city of Yogyakarta, Sleman and Bantul Regency. The city of Yogyakarta has 433 units of the waste bank, capable of managing waste up to 899,801.8 kg/month, Sleman Regency has 34 units of the waste bank (78.966,4 kg/month) and Bantul has 24 units of the waste bank (49.873,5 kg/month). The integration of formal and informal sectors through waste banks can increase the percentage of waste management services. The level of service in Yogyakarta City increased from 85% to 95.5%, Sleman District from 30.71 to 31%, and Bantul Regency from 7.49 to 7.7%
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Ashari, NFN. "Peran Perbankan Nasional dalam Pembiayaan Sektor Pertanian di Indonesia." Forum penelitian Agro Ekonomi 27, no. 1 (October 11, 2017): 13. http://dx.doi.org/10.21082/fae.v27n1.2009.13-27.
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<strong>English</strong><br />Agricultural sector has a very strategic role in the national development. Nevertheless, the agricultural sector still deals with some problems, e.g. lack of capital for farmers and agricultural business. National banks, theoretically, have a significant potential for agricultural financing because of their core business as the financial intermediary institution. However, the facts show that national banking credit to the agricultural sector is still limited, that is less than 6 percent. This paper aims to review potential, role and the constraint of national banks in financing the agricultural sector. The study shows that the lack of financing in the agricultural sector by national banks caused by high risk in the agricultural sector, complicated term in credit proposal, poor management of agricultural businesses due to its micro-small scale, and limited competence of bank in the field of agricultural finance. The government tries to increase agricultural finance through increasing budget allocation to this sector, improving effectiveness of state budget funds, or formulating an alternative financing scheme in accordance with the characteristics of agriculture. <br /><br /><br /><strong>Indonesian</strong><br />Sektor pertanian memainkan peran sangat strategis dalam pembangunan nasional. Walaupun demikian, sektor pertanian masih dihadapkan pada beberapa permasalahan, diantaranya kurangnya permodalan petani dan pelaku usaha pertanian. Perbankan nasional, secara teori memiliki potensi besar sebagai pendukung pembiayaan pertanian karena secara legal formal merupakan lembaga intermediasi keuangan. Namun, fakta menunjukkan penyaluran kredit perbankan nasional ke sektor pertanian masih sangat kecil yaitu di bawah 6 persen. Tulisan ini bertujuan melakukan review terhadap potensi dan peran serta berbagai permasalahan yang dihadapi perbankan nasional dalam pembiayaan di sektor pertanian. Hasil studi menunjukkan bahwa minimnya pembiayaan di sektor pertanian oleh perbankan disebabkan beberapa hal, diantaranya: risiko pembiayaan yang tinggi, persyaratan yang ketat dalam pengajuan kredit, kelemahan manajemen usaha pertanian yang umumnya berskala mikro-kecil, serta keterbatasan kompetensi perbankan di bidang pertanian. Pemerintah telah berupaya untuk meningkatkan pembiayaan ke sektor pertanian, diantaranya dengan memperbesar alokasi anggaran ke sektor pertanian, peningkatan efektivitas dana APBN, mendorong perbankan lebih ekpansif dalam pembiayaan pertanian, maupun merumuskan skim pembiayaan alternatif yang sesuai dengan karakteristik pertanian.
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Derevyanko, Bogdan, Yevhen Zozulia, and Liudmyla Rudenko. "Money assets of internally displaced persons as financial resources of commercial banks." Banks and Bank Systems 12, no. 4 (December 20, 2017): 211–17. http://dx.doi.org/10.21511/bbs.12(4-1).2017.09.
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The article highlights the necessity of ensuring the interests of the state, commercial banks and internally displaced persons. The analysis of the scientific literature has shown that there is no the problem of this kind in the European countries. So wide “hybrid warfare” in the world history is being waged on the territory of Ukraine. The world has not encountered similar problems. The extensive research of the scientific literature has shown that Ukrainian scientists attempted to solve the problems of bank management, the market of deposit services, the relations of commercial banks with the National Bank of Ukraine, the management of banking system and risks, etc. The relations of three participants (internally displaced persons, commercial banks and the National Bank of Ukraine) in the deposit market of Ukraine have not been under study yet. This paper explores the ways in which it is possible to combine the interests of the state, internally displaced persons and banks and find new sources of banks’ credit resources. The methodological approach taken in this study is a mixed methodology based on dialectical method, formal-and-logical method, logical-and-juridical method and methods of analysis, synthesis, and comparison. The uniqueness of the problem for the economy and social sector of the European countries is determined; the ways of the state support of citizens-investors in their economy and national banks are explored and some important changes in the Ukrainian legislation are studied.
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Bahri, Kharida Aulia, Yeni Herdiyeni, and Suprehatin Suprehatin. "Credit Scoring Model for Farmers using Random Forest." Jurnal RESTI (Rekayasa Sistem dan Teknologi Informasi) 7, no. 1 (February 2, 2023): 88–93. http://dx.doi.org/10.29207/resti.v7i1.4583.
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One of the problems faced by farmers in Indonesia is capital. Based on Indonesian Central Statistics Agency survey results, the number of farmers who borrow capital from formal institutions such as banks is still small. This is because the process of applying for loans at banks is lengthy, farmers are considered high-risk and unbankable, and the rating of the agricultural sector is unattractive to banks. This study aims to determine the attributes and design a model of agricultural credit assessment. This study uses secondary data related to bank credit ratings and land productivity from banks in the Telagasari sub-district in 2018–2020 and Cipayung sub-district in 2020. Data were analyzed using random forests. The research process includes four stages: data collection, data pre-processing, model building, and model analysis and evaluation. This study produced five important variables that are relevant to farmers: planting costs, sales, land productivity, total production, and land area. The model built produces the most optimal accuracy of 83% with an AUC score of 81%. Based on the AUC performance classification, it can be concluded that the model that has been made is good at predicting the credit status of farmers because the AUC value is included in the good classification predicate.
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Kollár, Boris, and Peter Adamko. "Possibilities of Var Application in Financial Investments." SHS Web of Conferences 74 (2020): 01014. http://dx.doi.org/10.1051/shsconf/20207401014.
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Value at Risk is one of the quantitative methods used in banking and insurance. It is basically a statistical estimate of the worst loss that may occur with a certain probability in a certain future period. The main aim of this paper is application of Value at Risk model to the problem of optimal portfolio creation. It focuses on banking sector in Slovak republic and uses Value at Risk to assess the risk of commercial bank sector in Slovakia. To achieve this goal, it uses several methods of formal logic like analysis, synthesis, deduction, comparison as well as statistical methods. The first part is dedicated to a description and characterization of Value at Risk. Second part is oriented on characteristics of Slovak banking sector. Results consist of application of Value at risk on five biggest commercial banks in Slovakia. The conclusion of this paper is focused on the sets of recommendations for Value a Risk application and possible source of problems, which could occur while applying it under the conditions of small economy and its banking sector.
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Win, Sandar. "Banks’ lending behaviour under repressed financial regulatory environment." Pacific Accounting Review 30, no. 1 (February 5, 2018): 20–34. http://dx.doi.org/10.1108/par-05-2016-0054.
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Purpose Regulatory authorities in Myanmar are increasing banks’ independence in providing loans to facilitate better financial resource allocations. On the other hand, not only in the USA but also among European countries, policymakers are designing regulations that could reduce banks’ autonomies in risk management and decrease risk taking behaviour. These governments have made policy interventions in their banking sectors which could be identified as repressive policies. They are commonly justified as macro-prudential regulations rather than financial repression. However, the authors are yet to understand as to what extent regulations need to be tightened or loosened up to reach optimal risk-taking behaviour. Using Myanmar as an example where the extreme form of governmental interventions and prudential regulations exists, this paper aims to identify the effectiveness of such policies. Design/methodology/approach This paper relies on a case study of the Myanmar’s Banking Sector. The paper adopts of the synthesis of institutional theory and Oliver’s strategic response to identify how banks respond to repressive financial policies. The empirical evidence is collected through conducting 16 interviews including banks’ general managers, deputy chairmen and loan officers. Afterwards, the authors analysed the data using categorical thematic analysis with the assistance of NVIVO. Findings First of all, the extent to which repressive financial measures enforced on banks differ depending on their political affiliations and ownership structures. Second, though repressive policies were enforced on banks to curb risk taking behaviour among banks and maintain financial stability, Myanmar banks themselves had inherent nature of risk aversion towards lending. Third, in Myanmar, financial repression does not always mean banks need to compromise their efficiency in profit maximisation to achieve legitimacy from the regulatory authorities. If the formal constraints were not in line with economic actors’ internal objectives, a different set of rules of the game were formed. Originality/value This paper provides new evidences for the controversial subject on financial repression and liberalisation through analysing micro level data of banks’ lending practice rather than using aggregate macro-level data. Bank-level information provides banks’ concerns, challenges and their loan assessment process while operating under repressive financial policies. This study is also unique in the sense that it is contributing to the limited academic literature on Myanmar’s financial system. It represents the last surviving case of repressed financial system and the presence governmental interventions and prudential regulations. Hence, it was used as an example to identify the effectiveness of such policies.
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Mehta, Atul, and Joysankar Bhattacharya. "Channels of financial sector development and rural-urban consumption inequality in India." International Journal of Social Economics 44, no. 12 (December 4, 2017): 1973–87. http://dx.doi.org/10.1108/ijse-05-2015-0117.
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Purpose The purpose of this paper is to examine the direct (microcredit), medium-direct (bank credit), and indirect (through economic growth) effect of financial sector development (FSD) on rural-urban consumption inequality (RUCI) in India using state-wise annual data from 1999-2000 to 2011-2012. Design/methodology/approach A panel data analysis for a sample of 15 major Indian states using the generalized method of moments estimators provides an empirical evidence for the direct (microcredit), medium-direct (bank credit), and indirect (economic growth) effect of FSD on RUCI. Findings FSD is pro-urban in India resulting in a declining rural-urban consumption ratio (RUCR) and increasing RUCI. The negative effect of FSD on RUCR is greatest through the medium-direct channel followed by the indirect and direct channels. Research limitations/implications The study questions the social banking initiatives of the government in rural areas where more than 80 percent of the poor reside. There is a need for restructuring financial inclusion programs with a shift in their focus on rural areas and an improved mechanism to target the poor. Originality/value The paper proposes that formal financial services by banks are primarily availed by non-poor and urban population and hence acts as a medium-direct channel whereas the semi-formal financial services by microfinance institutions specifically target the rural poor and act as a direct channel to affect the poor. It is the first ever study to use state-wise data on microcredit disbursed under Self-help Group Bank Linkage Program to assess the direct impact of FSD on RUCI.
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Ms Laxmi Negi, Dr Raghav Garg, Ms Megha Ahuja,, and Mr Bharat Bhushan, Mr Swapnil Gaur. "Strategic Financial Management for Housing Finance Companies in India: A Multivariate Approach." European Economic Letters (EEL) 13, no. 5 (December 26, 2023): 1652–60. http://dx.doi.org/10.52783/eel.v13i5.945.
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Housing Finance Companies (HFCs) have traditionally played a significant role in India's formal housing finance sector. However, their prominence has waned since the fiscal year 2003 when Commercial Banks (CBs) surpassed them in market share, holding over 70 percent of the market compared to HFCs' 28 percent. Cooperative sector institutions occupy a much smaller share, approximately 0.5 percent. Despite their specialization in housing finance, HFCs face increasing challenges to their market share and profitability, particularly the smaller ones. Many smaller HFCs have already succumbed to competitive pressures. The introduction of the 'Base Rate' by the Reserve Bank of India compelled commercial banks to charge higher lending rates to HFCs, placing additional cost pressures on these institutions. Given this evolving landscape, the financial performance of HFCs has become crucial for their survival and growth. In this context, this paper aims to achieve the following objectives: (i) provide an overview of the institutional housing finance system in India, (ii) conduct a comprehensive examination of the role of HFCs in the changing housing finance market, including their principal challenges, (iii) analyze the determinants of superior financial performance in HFCs using Multivariate Discriminant Analysis (MDA) methodology, and (iv) propose effective strategies to enhance the financial performance of HFCs in the context of financial management.
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Pathania, Kulwant Singh, and Neha Dewan. "Challenges Confronted by Banks in Implementing Financial Inclusion Schemes in Himachal Pradesh." RESEARCH REVIEW International Journal of Multidisciplinary 7, no. 2 (February 20, 2022): 17–25. http://dx.doi.org/10.31305/rrijm.2022.v07.i02.004.
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India has been acknowledged the social and economic obligations of financial inclusion since independence and has made immense contributions. The government of India and the Reserve Bank of India has been making combined efforts to foster financial inclusion as one of the primary national aims of the country. Since last decade hard efforts have been made by the government to cover the unbanked population under the formal financial sector. A lot of important schemes have been introduced by the government from time to time for the benefit of the people on one hand and to strengthen the economy on the other but the load of execution of the schemes on the ground level was on the shoulders of banks. As far as the economic upswing of the nation is concerned, the most relevant thing is the financial inclusiveness, for which the paramount role players are banks. It will be impossible to think about financial inclusive economy if banks do not link the governmental schemes with the end users. Concerning the significance of banks study has been undertaken to study the challenges confronted by banks while implementing financial inclusion schemes in Himachal Pradesh. The study is based on the primary data collected with the help of questionnaires to be filled by branch’s manager or assistant manager by 64 selected banks of the state. To achieve the objective of the study analysis has been done with the help of various statistical techniques like mean, standard deviation and exploratory factor analysis.
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Chitimira, Howard, and Sharon Munedzi. "Selected challenges associated with the reliance on customer due diligence measures to curb money laundering in South African banks and related financial institutions." Journal of Comparative Law in Africa 8, no. 1 (2021): 42–66. http://dx.doi.org/10.47348/jcla/v8/i1a2.
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Customer due diligence is a means of ensuring that financial institutions know their customers well through know-your-customer (KYC) tools and related measures. Notably, customer due diligence measures include the identification and verification of customer identity, keeping records of transactions concluded between a customer and the financial institution, ongoing monitoring of customer account activities, reporting unusual and suspicious transactions, and risk assessment programmes. Accordingly, financial institutions should ensure that their customers are risk assessed before concluding any transactions with them. The regulation of money laundering is crucial to the economic growth of many countries, including South Africa. However, there are still numerous challenges affecting the banks and other role players’ reliance on customer due diligence measures to combat money laundering in South Africa. Therefore, a qualitative research methodology is employed in this article to unpack such challenges. The challenges include the failure to meet the identification and verification requirements by some South African citizens, onerous documentation requirements giving rise to other persons being denied access to the formal financial sector, and the lack of express provisions to regulate the informal financial sector in South Africa. Given this background, the article discusses the challenges associated with the regulation and implementation of customer due diligence measures to enhance the combating of money laundering in South African banks and related financial institutions. It is hoped that the recommendations provided in this article will be utilised by the relevant authorities to enhance customer due diligence and effectively combat money laundering activities in South African banks and related financial institutions.
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Ullah Khan, Naimat, Wajid Sultan, and Rahman Ullah Khan. "Financial Pattern of Small and Medium Enterprises (SMEe) of Pakistan." Business & Economic Review 13, no. 4 (December 15, 2021): 1–24. http://dx.doi.org/10.22547/ber/13.4.1.
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The study explores the financial pattern of Small and Medium Enterprises (SMEs) in Khyber Pakhtunkhwa (KP) province of Pakistan. Financial pattern including overall management of finances sources, the obstacles in financing and to identify the most lucrative sources of financing. The data is gathered through 200 questionnaires distributed in four districts, namely, Peshawar, Mardan, Swat and Haripur of Khyber Pakhtunkhwa using the snowball sampling technique. The reason for choosing KP province is that it has a meager proportion of about 5% in total 3.2 million SMEs in Pakistan. The research explores the financial reasons for such a low number of SMEs in KP. The results of the study show that major problem to SMEs is an access to formal financing sector including high interest rate, high collateral requirements and the complex documentation process to get loans. The major source of financing in KP is equity capital and re-invested profit made by business. The findings also indicate that majority of managers and owners of SMEs are dissatisfied from the banks and policies of Small and Medium Enterprises Development Authority (SMEDA). The study suggests that SMEDA should have clear and transparent policies and vision to fulfill the financial needs of SMEs from the formal financial Institutions. Similarly, banks should tailor their products and services according to the needs of SMEs.
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Saefullah Zevender, Poy, Lathifahturahmah Lathifahturahmah, Lutfi Rohmawati, Tasiman Tasiman, and Widayati Widayati. "Development And Impact Of Financial Technology (Fintech) On The Islamic Financial Industry Perumda BPR Majalengka." Return : Study of Management, Economic and Bussines 1, no. 4 (December 20, 2022): 169–75. http://dx.doi.org/10.57096/return.v1i4.59.
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The purpose of this study was to examine how the development and impact of Fintech on the Islamic finance industry in Majalengka. The research method used is descriptive qualitative method and combines two types of research, namely field research and library research. Field research by collecting information from the Financial Services Authority (OJK) Majalengka, and from the Islamic Finance industry, namely Perumda BPR Majalengka. Along with the development of technology, the financial industry is also growing with the emergence of Fintech (financial technology). Fintech is one of the innovations in the financial sector that refers to modern technology. The development of Fintech so that Sharia-based Fintech appears and facilitates customers will certainly affect the formal Islamic finance industry such as Islamic Banks, Sharia BPRS, BMTs and other formal Islamic finance industries where transactions in the formal Islamic finance industry still use physical transactions. in transactions and have not made much use of technological advances that are growing. This will make the formal financial industry less effective because it costs more and takes more time. If the Islamic finance industry is not able to innovate and utilize technology, it will be left far behind by the Fintech-based financial industry which is developing very rapidly.
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Amari, Mouna, and Jarboui Anis. "Exploring the impact of socio-demographic characteristics on financial inclusion: empirical evidence from Tunisia." International Journal of Social Economics 48, no. 9 (July 20, 2021): 1331–46. http://dx.doi.org/10.1108/ijse-08-2020-0527.
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PurposeThis paper aim to fill the gaps by looking for the determinants and barriers related to financial inclusion. This study assesses the effect of socio-demographic variables on the use of formal financial inclusion services.Design/methodology/approachThis article examines the barriers to formal financial inclusion, focusing on saving and credit strands. The authors propose the probit model, allowing distinguishing the outcome variable into three categories: Formal inclusion, informal inclusion and financial exclusion. The authors apply this model to the Findex 2017 survey data.FindingsEstimation results propose that the trust to financial institutions, the distance to banks, the lack of documentation and the service costs are the main barriers, but these barriers affect the probability of using formal financial services differently according to the types of financial services (saving or credit).Research limitations/implicationsTo advance the formal financial inclusion in Tunisia, the authors call for continuing promoting financial literacy among adults and the young population, which helps them understand the benefits of using formal financial services. Financial literacy throws in constructing the individual trust toward the financial sector in a country that experienced several decades of political and economic instability.Originality/valueFinancial inclusion promotes growth through a broadening of the system and technology that can be a major catalyst for greater financial inclusion. It helps in the overall economic development of the underprivileged population and contributes to poverty reduction. It can also enhance the security of payments, and thus lower the incidence of associated crime.
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Patel, Harshad, and Kanishk Shah. "Payment Bank: Indian Post Payment Bank towards financial inclusion through Digitalization." RESEARCH HUB International Multidisciplinary Research Journal 9, no. 3 (March 25, 2022): 30–38. http://dx.doi.org/10.53573/rhimrj.2022.v09i03.005.
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In India, due to the financial deprivation of the poor and disadvantaged it has resulted in many citizens not being able to properly access important banking institutions and services that hinder the growth and financial progress of a few. This is very common in rural areas, hence the need to address the above problem. India's financial system has seen dramatic changes since 1991. The banking sector is one of the most efficient after the liberation, and success can be attributed to the major banking changes made by the RBI and other major technological changes that have taken place over the years. In 2014, the RBI introduced two new categories of banks in the Indian financial system, namely Payment Banks and Small Banks. The main purpose of introducing these banks is to increase investment and to distribute financial product and services in undeveloped rural areas. This paper introduces the framework for payment banks, as well as the expected benefits from payment banks. How this India Post Payment Bank will be an amazing step in providing financial services to customers, especially migrant workers and those from low-income households, as well as bringing them into the formal financial system. This paper is based entirely on the second data to give an overview of the payment bank and its operation and how the concept of the payment bank kills two birds with one stone. First, its move towards a financial inclusion program by expanding digital payment infrastructure. Second, it promotes a culture of financial technology in Indian banks. The positive findings in the depth of financial services and financial inclusion in India, especially in rural areas, are mainly focused on low-income groups and small businesses.
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Christensen, Leif, Pall Rikhardsson, Carsten Rohde, and Catherine Elisabet Batt. "Changes to administrative controls in banks after the financial crisis." Qualitative Research in Accounting & Management 15, no. 2 (June 18, 2018): 161–80. http://dx.doi.org/10.1108/qram-12-2016-0088.
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Purpose This paper aims to explore and explain how administrative controls have been changed as a response to a significant crisis, using the transition of the three largest Icelandic banks from bankrupt to operational entities after the 2008 financial crisis. The Icelandic banks are compared with three Danish banks to separate crisis-driven responses from simple market-driven reactions. Design/methodology/approach Empirical data were collected using semi-structured interviews. The participating Icelandic and Danish banks were considered as two units, which formed the basis for a comparative case study between the two countries. Findings Driven by an understanding of what is expected by the market rather than the need to inform and guide the employees the Icelandic banks implemented a number of revolutionary and formally documented changes. These changes included significant bigger risk management functions and policies and procedures documenting “everything”. However, in both countries, it seems that new values supported by the “tone at the top”, areas with limited formal documentation, are the most important management tools. Research limitations/implications The study relies on interviews with employees, and the actual changes of administrative controls have not been reviewed. The most important implication is that the situated logics in Iceland driven by external institutional pressure initiated a revolutionary implementation of values bypassing existing routines and formalised rules. Originality/value Although the use of management controls has been studied intensively, detailed studies of the banking sector have been lacking. Furthermore, there is limited knowledge of how administrative controls changed in response to the financial crisis.