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Journal articles on the topic 'Non-institutional credit'
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Haque, Z., and T. Jinan. "Land Tenure and Credit - a Study in Selected Areas of Mymensingh." Journal of Environmental Science and Natural Resources 10, no. 2 (November 29, 2018): 143–50. http://dx.doi.org/10.3329/jesnr.v10i2.39027.
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The present study aims at investigating into the existing land tenure system and its relationship with credit at Trishal Upazila of Mymensingh district. Keeping in view the objectives, 70 samples were randomly selected. The respondents have taken loan from institutional, semi institutional and non-institutional sources of credit for producing crops. The study reveals that the absentee land owner and part operator in the area have got more access to institutional sources of credit because of their ability to offer land as security. Tenants on the other hand were found to have no loan at all from the BKB because of their inability to offer collateral against loan. The tenant farmers however, were found to have access to semi institutional sources like GB and BRAC. The respondents therefore, need not be so dependent at present on money lenders and non-institutional sources of credit because of institutional and semi-institutional network present close to the study area. A lion’s share of loaned money obtained has been productively utilized by the sampled respondents irrespective of tenure categories implying the borrower’s positive attitudes towards productive utilization.J. Environ. Sci. & Natural Resources, 10(2): 143-150 2017
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Majumdar, C. "Institutional and Non-Institutional Credit Delivery in Hooghly, West Bengal: Who Are the Recipients?" Journal of Land and Rural Studies 1, no. 2 (July 1, 2013): 199–211. http://dx.doi.org/10.1177/2321024913513384.
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Chisasa, Joseph, and Daniel Makina. "Bank Credit And Agricultural Output In South Africa: Cointegration, Short Run Dynamics And Causality." Journal of Applied Business Research (JABR) 31, no. 2 (March 3, 2015): 489. http://dx.doi.org/10.19030/jabr.v31i2.9148.
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In this paper we investigate the dynamic relationship between bank credit and agricultural output in South Africa using time series data from 1970 to 2011. Using the Johansen cointegration test, we observe bank credit and agricultural output to be cointegrated. In the long run we find credit and capital formation to have significant positive impact on agricultural output. Employing an ECM, we find that, in the short run, bank credit has a negative impact on agricultural output reflecting the uncertainties of institutional credit in South Africa. However, the ECM coefficient shows that agricultural GDP rapidly adjusts to short term disturbances indicating that there is no room for tardiness in the agricultural sector. The absence of institutional credit will be immediately replaced by availability of other credit facilities from non-institutional sources so that there is no room for possible non-application of intermediate inputs. Conventional Granger causality tests show uni-directional causality from (1) bank credit to agricultural output growth; (2) agricultural output to capital formation; (3) agricultural output to labour; (4) capital formation to credit; (5) capital formation to labour, and a bi-directional causality between credit and labour. Noteworthy is that for the agricultural sector the direction of causality is from finance to growth, i.e., supply-leading, whereas at the macroeconomic level the direction of causality is from economic growth to finance, i.e., demand-leading.
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Khutorna, Myroslava. "Institutional formation of the market for debt settlement of consumers of financial services of credit institutions in Ukraine." INNOVATIVE ECONOMY, no. 7-8 (November 2019): 123–31. http://dx.doi.org/10.37332/2309-1533.2019.7-8.18.
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Purpose. The aim of the article is substantiation of the content of institutional measures, the implementation of which will improve the quality of assets of credit institutions of Ukraine. Methodology of research. The methodological basis of the research is formed on the basis of an institutional approach to substantiate the institutional preconditions for the functioning of the market for debt settlement of consumers of financial services of credit institutions; systematization to identify constraints and incentives for the effective use of various ways to solve the problem of non-performing bank loans; a statistical and analytical approach to quantify the level of quality of the current state of settlement of problem debt by different groups of banks in Ukraine; methods of scientific abstraction and logical generalization to describe the organizational and economic features of the formation of the market for debt settlement of consumers of financial services of different types of credit institutions of Ukraine. Findings. It is substantiated that ensuring the financial stability of credit institutions of Ukraine requires the development of a transparent market for debt settlement of consumers of financial services of credit institutions. The organizational-economic and institutional peculiarities of the formation of such a market are determined by detailing the following parameters: the legal basis of the activity of market participants; organizational form and institutional subordination of the debt management entities; administrative barriers to entry; the competitive conditions of activity of the entities for debt management and regulation of their relations with related parties; requirements for the personnel of debt management entities; the content of instruments to reduce the risks of their activities and to stimulate an increase in the volume of debt settlement of consumers of financial services of credit institutions; ways to organize debt sales; fiscal stimulus. It is proved that the most appropriate way to settle non-performing loans of state-owned banks is to involve the Deposit Guarantee Fund in this activity. This is explained by: the existence of an established mechanism for settlement of non-performing assets of liquidated banks; a well-functioning non-performing credit infrastructure that operates on the basis of transparency, uniformity of rules and public accountability; long experience of selling non-performing bank loans, including loans to related parties and corporate loans with poor quality or lack of collateral; a mechanism for independent economic investigations has been established; highly qualified specialists; no additional taxpayer spending. Originality. The institutional framework for the development of the debt management market for consumers of financial institutions of credit institutions has been improved, which, unlike the existing one, includes: substantiation of the organizational and legal framework of the activity of the debt management entity; identifying instruments for harmonizing the process of debt management from a wide range of stakeholders; disclosure of institutional and organizational features and institutional prerequisites for effective resolution of problematic debt of state-owned banks. This will help to improve the quality of consumer protection and their confidence in the monetary intermediation institution; will encourage credit institutions to improve the valuation of the market value of financial assets, including by enhancing liaison with credit bureaus. Practical value. The main provisions and conclusions of the conducted study are brought to the level of practical recommendations, take into account the current legislation and its prospective changes, and can be effectively used to solve the problems related to debt management of consumers of financial services of credit institutions in the domestic credit segment of the financial sector. Key words: credit institutions; state banks; non-performing loans; debt settlement market; debt settlement companies; institutional interaction of the entities of the debt settlement market; financial stability.
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Chуіpesh, Nataliіa, and Yuriі Belinskyi. "INSTITUTIONAL SUPPORT FOR INNOVATIVE DEVELOPMENT OF THE CREDIT MARKET." Problems and prospects of economics and management, no. 4(36) (2023): 352–64. http://dx.doi.org/10.25140/2411-5215-2023-4(36)-352-364.
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Institutional support for innovative development of the credit market is an important object of research, within the framework of which the search for effective methods, means and tools is carried out to improve the efficiency of its functioning. Analyzing the activities of the credit market, it can be noted that low efficiency of its work is largely determined by the imperfection of institutional support for the process of introducing innovative credit services.The purpose of the article is to study institutional support for innovative development of the credit market and determine their influence on the credit market development in Ukraine, which is necessary for understanding the interaction of credit market institutions, identifying factors that pro-mote or inhibit innovation and developing a strategy for creating a favorable innovation environment.Within the article, subjects of institutional support for innovative development of the credit market are studied. Considerable attention is paid to participants in the credit market in the field of innovative development, as well as to the regulatory legal acts that guide institutions in their methods of influence and regulation in the credit market, and functions of institutions are defined. Government institutions (the Na-tional Bank of Ukraine, Verkhovna Rada of Ukraine, Ministry of Finance of Ukraine, Ministry of Economy of Ukraine, National Securities and Stock Market Commission, Individual Deposit Guarantee Fund, Anti-monopoly Committee of Ukraine) were selected as subjects of institutional support for innovative develop-ment of the credit market. state institutions providing support for innovative activities (State Innovative Financial and Credit Institution), credit infrastructure institutions (banking and non-banking institutions, credit history bureaus, collection companies, rating agencies, credit brokers), fintech companies, educa-tional institutions (universities, scientific centers), innovative institutions (laboratories, technology parks, industrial parks, business incubators, technological hubs).The study of the influence of the above-mentioned subjects of institutional support for innovative development has become an important tool for understanding the interaction between government regulators of the credit market, credit institutions, educational institutions, innovative institutions, and fintech companies
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Shahzad, Umeair, Jing Liu, and Fukai Luo. "STOCK LIQUIDITY AND CORPORATE TRADE CREDIT STRATEGIES: EVIDENCE FROM CHINA." Journal of Business Economics and Management 23, no. 1 (November 30, 2021): 40–59. http://dx.doi.org/10.3846/jbem.2021.15655.
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This study investigates the nexus of stock liquidity and trade-credit policies in China from 2002 to 2017. The estimates are robust to alternative proxies, various fixed-effects, and the exogenous impact of Chinese split share structure reforms (SSSR) 2005-06 is investigated through the difference-in-difference analysis. The results validate that stock liquidity significantly impacts firms’ capacity to produce more trade credit supplies and less reliant on trade credit demand. The study applied SUEST analysis to investigate the effect of the Chinese institutional setting. The nexus of stock liquidity and trade credit strategies is substantial in state-owned enterprises. Additional analysis revealed that the said association is more visible to credit-constrained and equity-reliant enterprises. The policymakers should focus on market liquidity because it elevates firms’ capacity to mobilize capital through trade credit provisions. The micro aspect of this study suggests that stock liquidity allows managers to shape non-price competitive strategies and avoid excessive usage of trade credits.
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Gopal, Supragya Krishan, and Syed H. Mazhar. "Impact of Kisan Credit Card Scheme on Farmers in Kannauj District of Uttar Pradesh, India." Current Journal of Applied Science and Technology 42, no. 39 (October 26, 2023): 24–31. http://dx.doi.org/10.9734/cjast/2023/v42i394254.
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Capital is the most important input in any sector in any country, and agriculture is no exception. The agricultural sector's performance and productivity are determined by the availability of capital for farming activities. As a result, the agriculture sector requires support or credit in order to grow and survive. Agriculture credit is desperately needed to improve the agricultural sector's performance and production. Before financial reforms, the main source of agriculture credit was non-institutional sources i.e. Sahukars, Mahajanas, Moneylenders etc. and they were providing credit facility to farmer households at very high interest rates. The study was carried out in purposively selected district of Kannauj, Uttar Pradesh. The present study has made an attempt to study as the Kisan Credit Card Scheme is being implemented in the district as well as the researcher is well acquainted with the area. 158 beneficiaries and 158 non-beneficiaries were selected randomly for the current study. The main objective of present study is to investigate the challenges and issues in the adoption of Kisan credit card scheme by farmer households and how much this scheme succeed in resolving the previous issues and challenges. Credit availability for agricultural activities is the crucial input for improving the performance and productivity of the agriculture sector. The research aims to find out the sources of finance before and after the adoption of KCC Scheme opted by farmer households for availing the credit to fulfill the capital requirement of agriculture and allied activities. The analysis demonstrates a considerable favorable change in recipients' preferred source of credit following the implementation of the KCC scheme. Following the implementation of the KCC Scheme, the beneficiaries' credit sources moved from non-institutional to institutional. The Kisan Credit Card schemes revolutionized rural financing in India. This study will be extremely useful in determining the best way to distribute the KCC plan.
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Nagaraju Y, A. Sachindrababu, Nirmala S.R., and Megha Mallikarjun Doni. "Impact of Institutional Credit on the Farm Economy – Empirical Evidence from a Study in Karnataka, India." Ecology, Environment and Conservation 28, no. 04 (2022): 1987–92. http://dx.doi.org/10.53550/eec.2022.v28i04.049.
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The present study was conducted to examine the effects of institutional credit on the cost, returns and profitability of farming in the Tumkur district of Karnataka State. Out of the sample of 120 respondents selected for study, sixty were borrowers of institutional credit during 2008-09 and the remaining sixty were the non-borrowers selected from the same area. Independent sample t-test was used to compare the production and income of beneficiaries with those of non-beneficiaries. The borrowing pattern showed that the per-farm amount of loan increased with increase in the size of holding. The analysis revealed that the income of beneficiary farm category was higher than that of non-beneficiaries. The per-acre production of beneficiaries with credit for paddy, ragi, groundnut, pigeonpea, arecanut and coconut was more compared to the non-beneficiaries and there was a significant difference in yields except coconut yield. The cost and return structure of major crops, viz, paddy and ragi revealed that the total cost of cultivation was to Rs.12045.11 and 11715.84 per acre respectively on borrower farms compared to Rs. 9991.4 and 10056.44 per acre on non-borrowers farms. The net returns derived from paddy and groundnut were Rs. 16,124.33 and Rs. 14,809.88 (on borrower farms) and Rs.11,132.22 and Rs. 8,771.34 (on non-borrower farms), respectively. The results have clearly demonstrated that agricultural credit has positive impact on the per acre yield of crops under study and also on farmers’ income. Thus the flow of institutional credit has resulted in improving the economy of the borrower farmers.
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Yutai, Wu. "Research on the Influence of Institutional Innovation on Non-credit Phenomena." Finance and Economics Focusing 2, no. 3 (2020): 83–89. http://dx.doi.org/10.35534/fef.0203014c.
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Dongping, Han, and Yu Huaiyu. "Empirical Research on the Effect of Independent Audit Opinion on Trade Credit." E3S Web of Conferences 253 (2021): 02070. http://dx.doi.org/10.1051/e3sconf/202125302070.
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This paper takes listed companies from 2014 to 2018 as a research sample. The results show that the independent audit opinion will affect the trade credit decision of the supplier to the enterprise. A good institutional environment can weaken the impact of non-standard independent audit opinion on the cost and scale of trade credit. And good industry environment can weaken the positive correlation between non-standard independent audit opinion and trade credit cost.
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Kartashov, A. V. "The mechanism of legal regulation of risks of non-credit financial organizations." Courier of Kutafin Moscow State Law University (MSAL)), no. 9 (November 7, 2020): 154–61. http://dx.doi.org/10.17803/2311-5998.2020.73.9.154-161.
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In this article, the author analyzes the development trends of the mechanism of legal regulation of internal control of non-credit financial organizations. The author notes that the requirements established by the Bank of Russia for the risk management system are regulated in the relevant acts based on the functional and institutional approaches. The article substantiates the thesis that in its activities the Bank of Russia uses similar approaches to regulating relations with the participation of credit and non-credit financial organizations.
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Mehedi, Sohel, Habibur Rahman, and Dayana Jalaludin. "The relationship between corporate governance, corporate characteristics and agricultural credit supply: evidence from Bangladesh." International Journal of Social Economics 47, no. 7 (June 5, 2020): 867–85. http://dx.doi.org/10.1108/ijse-02-2020-0085.
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PurposeThe paper aims to examine the level of agricultural credit by commercial banks and the determinants that influence the commercial banks to the increased level of agricultural credit through the pressures of the institutional environment.Design/methodology/approachThe study selects seventeen sample commercial banks following the market capitalization method and investigates a total of 85 annual reports during the period from 2013 to 2017. The study conducts a pooled regression to conclude the proposed hypotheses.FindingsThe present study finding indicates that the average of agricultural credits to total credits is 2.25% among the sample commercial banks. The study finds a positive significant association between board gender diversity, foreign director, management team and agricultural credit. Furthermore, the study has found that the role of the deposit in enhancing agricultural credit is positive. On the other hand, the association between independent directors, profitability and agricultural credits is negative.Research limitations/implicationsThe study is based on secondary data with five firm-year observations of commercial banks. The study finding is based on commercial banks, so it should not be generalized to non-bank financial institutions.Practical implicationsThe study emphasizes policymakers’ attention towards the level of agricultural credit and determinants that influence the level of agricultural credit by commercial banks in emerging markets.Originality/valueThe key contribution of the study is to focus on the reformist role of the determinants in promoting the increased level of agricultural credit in the emerging markets.
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Kurup, Indu R. "Kisan Credit Card System: A Blessing to Small Farmers in India." International Journal for Research in Applied Science and Engineering Technology 9, no. VI (June 30, 2021): 5206–8. http://dx.doi.org/10.22214/ijraset.2021.36148.
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Agriculture is the spine of the Indian economy, with approximately 70% of the population of the country continuing to depend on it either directly or indirectly for their living. One of the major challenges confronting Indian banks has been the development of an all-encompassing system for timely and sufficient agricultural-rural credit disbursement. Agriculturalists extensively rely on non-institutional or unorganized sources of credit as a result of regular needs, insufficient availability of institutional credit, unnecessary delays, incommodious procedures, red-tapism, and inappropriate practices adopted by the lending agencies. Realizing the dominant role of the agriculture sector, rural credit requirements, and for reducing the dependence of farmers on unorganized sources of credit, the Kisan Credit Card (KCC) scheme was started by the Government of India in consultation with the NABARD and RBI in 1998 as a path-breaking credit distribution mechanism to provide adequate, timely, cost-effective and hassle-free credit support to farmers. In this conceptual paper, an attempt has been made to briefly explore the implications of the Kisan Credit Card system among small farmers in India.
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Redondo, Helena, and Elisa Aracil. "Climate‐related credit risk: Rethinking the credit risk framework." Global Policy 15, S1 (March 2024): 21–33. http://dx.doi.org/10.1111/1758-5899.13315.
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AbstractClimate change and the challenges associated with the transition to a zero‐carbon economy pose significant financial risks. Climate‐related risks (CRR) indirectly impact banks through their loan portfolios. To examine the integration of CRR into banks' credit risk assessment and monitoring, this article reviews academic and institutional literature using quantitative bibliometric techniques and content analysis of 145 academic documents from policymakers and financial supervisors. A framework emerges that incorporates CRR into credit risk management. We find four thematic areas in the literature: CRR drivers, CRR tools, CRR data and CRR pricing. Overall, uncertainty, non‐linearity, geographic and industrial dependency and non‐reversibility of CRR difficult climate‐related credit risk assessment. Moreover, CRR data present comparability, availability and reliability issues, which Artificial Intelligence can improve. Finally, evidence reveals that current financial prices do not fully reflect CRR. Our findings provide important implications to policymakers for assessing ex‐ante the financial impacts of climate transition regulations, the potential for prudential regulatory action, and the need for supra‐national policies that facilitate access to reliable and comparable climate data.
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Juliana, Ahmad, Najmuddin Najmuddin, and Muhammad Tharmizi Junaid. "The impact of credit risk on market discipline: Exploring the moderating role of corporate governance through Generalized Method of Moments (GMM) analysis in banking companies." Jurnal Perspektif Pembiayaan dan Pembangunan Daerah 11, no. 6 (February 29, 2024): 407–18. http://dx.doi.org/10.22437/ppd.v11i6.26181.
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High credit risk poses a significant threat to banks, underscoring the necessity to examine the effectiveness of good corporate governance in mitigating such risks. This study aims to assess the impact of credit risk, represented by non-performing loans (NPLs), on market discipline, reflected through deposit growth, and the moderating role of good corporate governance, focusing on board size and institutional ownership, in this dynamic. Data for the study were sourced from the financial reports of banking companies on their official websites, IDN Financial, and the Indonesia Stock Exchange. The study used a purposive sampling method to analyze a sample comprising 30 banking companies and yielded 300 observations. The research methodology involved dynamic panel regression analysis using the Generalized Method of Moments (GMM) technique. The findings reveal that non-performing loans negatively impact deposit growth. However, it was also found that board size and institutional ownership could positively moderate the adverse effects of non-performing loans on deposit growth. This suggests that market discipline, manifesting as a reduction in deposits and an escalation in credit risk within the Indonesian banking sector, can be effectively managed and mitigated through the strategic implementation of good corporate governance practices, particularly by optimizing board size and enhancing institutional ownership. These mechanisms enable more robust market discipline, contributing to better credit risk management and promoting healthier deposit growth.
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Ali, Md Rostam, Rustom Ali Ahmed, and Md Ashikul Islam. "Cost of external financing of SMEs: A study of a developing country." International Journal of Financial Engineering 06, no. 03 (September 2019): 1950029. http://dx.doi.org/10.1142/s2424786319500294.
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This study has attempted to calculate the actual cost of the fund of SMEs by considering the fund from institutional and non-institutional sources. For this study, some financial tools, techniques, two samples mean comparison test and ANOVA test have been used to analyze the cross-sectional primary data. The study has found that the average actual cost of the fund from institutional sources, non-institutional sources (without trade credit) and trade credit are 15.52%, 32.11% and 40%, respectively. The cost of the external financing of small enterprises is higher than the medium enterprises and this cost in manufacturing sectors is higher than the service/trade sectors. Again, this cost in rural region is higher than the urban region but it is not statistically significant. The average cost of external financing of SMEs is about 29% which is really high to conduct a business properly.
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Tripathi, Ashutosh Kumar. "Credit for Agricultural Households in India: Growing Inequities." Journal of Asian and African Studies 52, no. 6 (December 23, 2015): 807–23. http://dx.doi.org/10.1177/0021909615618983.
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Why has the share of non-institutional finance sources for agricultural households not come down between 2002 and 2012? Is the dependency on non-institutional sources the same across farm size classes? Who are the major beneficiaries of the revival in agricultural credit in the 2000s? Are larger farmers becoming more productive and commercial thus requiring higher levels of credit? Are small farms becoming unviable, making it difficult for banks to finance them? This paper examines these issues empirically based on data from the Situation Assessment Survey (SAS) of Agricultural households and the All India Debt and Investment Survey (AIDIS) conducted by the National Sample Survey Organization (NSSO) in its 59th (i.e. 2003) and 70th round (i.e. 2013) and various publications from the Reserve Bank of India (RBI).
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Yadav, Priyanka, and Anil K. Sharma. "Agriculture Credit in Developing Economies: A Review of Relevant Literature." International Journal of Economics and Finance 7, no. 12 (November 24, 2015): 219. http://dx.doi.org/10.5539/ijef.v7n12p219.
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<p>This paper aims to present a comprehensive review of 110 studies on agriculture credit in developing countries during 1995 to 2015. The literature has been classified and presented on the basis of time period, country of study, methodology used, issues covered, and sources of study. Agriculture credit has gained interest of policy makers and researchers in developing economies in recent years with raising concerns of issues like food security and rising population. However, the situation of small and marginal farmers is still vulnerable and they lack timely and adequate access to institutional sources of finance. Non-institutional sources of credit are still dominant in rural credit markets; while the role of micro-finance appears dubious. This study will prove helpful for policy makers and future researchers who wish to study diverse issues in rural finance in general and agriculture credit in particular.</p>
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Ray, Sougata. "Challenges and changes in Indian rural credit market: a review." Agricultural Finance Review 79, no. 3 (June 3, 2019): 338–52. http://dx.doi.org/10.1108/afr-07-2018-0054.
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Purpose Post-independence, the rural credit market in India has undergone significant structural changes in order to enhance the availability and efficient use of credit. The purpose of this paper is to understand the challenges and changes in the Indian rural credit market in the post-independence period. Design/methodology/approach Using data from the All India Debt and Investment Survey conducted by the National Sample Survey Organisation of the Government of India from 1971–1972 to 2012 and Reserve Bank of India in 1951–1952 and 1961–1962, the study focuses on three important aspect of rural credit market, i.e. the availability, sources and uses of credit. The analysis is based on both the national and state level data and uses the decadal growth rates to explain the changes in the rural credit market. Findings Availability of credit, in terms of volume and number of households indebted, has increased substantially. However, the sharp rise in outstanding debt is a matter of concern. The share of credit from institutional agencies has seen a continuous decline post liberalisation. The non-institutional agencies, particularly the professional moneylenders, continue to be the most preferred sources of credit owing to their flexible nature of operation. Interesting, microfinance has emerged as a major source of credit particularly for the poor rural households. The rise in credit usage for non-income generating activities amongst poor households is another important concern. Originality/value The study highlights some of the most important features and characteristics associated with the Indian rural credit market. An understanding of these issues would provide valuable insight for shaping the future policy responses.
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Lamichhane, Basu Dev. "Credit Portfolio Management in Nepalese Microfinance Institutions (MFIs): A Shifting Guide to Credit Risk Management." Interdisciplinary Journal of Management and Social Sciences 4, no. 1 (May 26, 2023): 8–20. http://dx.doi.org/10.3126/ijmss.v4i1.54097.
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This paper attempts to provide a first step toward understanding the role of credit portfolio management in Nepalese microfinance institutions (MFIs) and overcome those problems associated with credit risk management. The credit portfolio management (CPM) has become most crucial functions of the Nepalese MFIs for sound loan portfolio quality. This study is based on descriptive research design. Several findings are made through the review of the literature that is parallel to achieving the objectives of the study. MFIs are financial intermediaries ("banks") that have a direct impact on economic and social transformation, such as job creation, income generation, social change, and poverty alleviation via financial and non-financial activities. The findings show that a credit appraisal system, scientific interest rate, credit monitoring, loan portfolio diversification system, capital optimization, risk framework development, regulatory management, credit control, credit advisory, and credit research, have reduced credit risk and ensured high-performing loans and financial sustainability. The study recommends that MFI’s portfolio management strategies focus more on the internal causes of delinquency which they have more control over and seek practical and achievable solutions to reimbursement delinquency problems. The study's findings will be useful to BFIs, institutional lenders, microfinance experts, regulators, economists, policymakers, and institutional credit rating agencies. The result reveals that portfolio diversification has a significant impact on credit portfolio management in Nepalese MFIs.
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KIZYMA, Tetiana. "CREDIT BEHAVIOR OF HOUSEHOLDS: STRUCTURAL AND ANALYTICAL ASPECTS." WORLD OF FINANCE, no. 1(58) (2019): 7–18. http://dx.doi.org/10.35774/sf2019.01.007.
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Introduction. Under modern conditions, Ukrainian households are increasingly trying to follow Western models of financial behavior, in which, due to stable laws and monetary-financial system, citizens demonstrate active credit behavior. At the same time, it should be noted that during the recent years the number of users of bank loans in Ukraine, who have overdue debts, has increased rapidly, that cause concern among domestic scientists and practitioners. Purposeof the research is to analyses the modern trends in households’ credit behavior in Ukraine and development of proposals for its rationalization under the current circumstances. Results. Under modern conditions, each household forms its own model of credit behavior, taking into account certain factors, established traditions and beliefs regarding the appropriateness of borrowing funds. However, an important feature of credit dependence of our nationals is still lack of critical analysis of their own financial capabilities due to their inability to resist the natural desire of a person to “live now” and “live well”. The study showed that over the past ten years, from 8% to 16% of the adult population of Ukraine took credits in the banks. Moreover, the Western region is the leader in bank borrowings (with the exception of credit cards), while Kyiv, the North and the East show a higher level of credit card loans. Kyiv and the East are also characterized by higher demand for pawnshops. The Centre is the only region with relatively more frequent use of services of other financial institutions. Also, the practice of providing (obtaining) of so-called non-institutional credits is common among Ukrainian households, when citizens are not only borrowers but also creditors (that is, situations when relatives, friends, acquaintances are borrowing money). Conclusions. Under the context of current financial crisis in Ukraine, the role of the state, local governments, institutions and individuals in rationalizing households’ lending behavior is significantly increasing. Therefore, in our opinion, preventive measures in this sphere should be carried out at the following levels: state, local, banking and financial-credit system, and personally-individual. At the same time, it should be emphasized that these measures will be implemented only if the state provides clear legal regulation of the credit process and establishes trust relations with the population, which will help to minimize the moral and material losses of households and institutional subjects of credit activity.
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Goyal, S., N. Singhal, J. M. Prosad, and N. Mishra. "Impact of Institutional Environment on Banks’ Non-Performing Loans: Evidence from BRICS Countries." Finance: Theory and Practice 27, no. 6 (December 28, 2023): 67–78. http://dx.doi.org/10.26794/2587-5671-2023-27-6-67-78.
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The drivers of non-performing loans (NPL) and the possible effects of the institutional and business environments on the credit risk exposure of banks in the panel of BRICS countries and segregated models are analyzed in this paper. The purpose of the study is to identify the relationship between banking, macroeconomic and institutional factors of non-performing loans of banks at the BRICS level for the period 1996–2020. The panel ARDL approach is used for this purpose. The Panel Granger causality test is applied to verify the hypothesis of the relationship between economic development and NPLs. Panel co-integration tests examine the existence of a long-term link between the same two variables. The results of the study demonstrated that a decrease in the proportion of NPLs results from boosting performance metrics like the Z-score. Because the banking industry has more resources as a result of higher financial development and/or financial intermediation, the amount of NPLs is reduced. Finally, our study demonstrates how important the institutional environment is for raising the quality of bank credit. It was concluded that the low level of NPLs in BRICS countries was largely linked to more effective anti-corruption management, robust regulatory standards, increased application of the rule of law, freedom of speech and accountability.
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Tanasković, Svetozar, and Maja Jandrić. "Macroeconomic and Institutional Determinants of Non-performing Loans." Journal of Central Banking Theory and Practice 4, no. 1 (January 1, 2015): 47–62. http://dx.doi.org/10.1515/jcbtp-2015-0004.
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Abstract This paper aims to analyse macroeconomic and institutional empirical determinants of growth of NPL ratios. Research is focused on selected CEEC and SEE countries in the period 2006- 2013. For our analysis we use static panel model approach with the logarithm of share of NPLs to total loans as a dependent variable. As independent variables we used a combination of country-specific macroeconomic and financial indicators which are commonly used in reference literature, as well as relevant institutional variables. Our results show that there is a negative relationship between increases in GDP and rise of the NPL ratio. Along with GDP, foreign currency loans ratio and level of exchange rate are positively related with the increase of NPL ratio. This confirms the expectation that countries where domestic currency is not the main medium of credit placements will have larger problems with the level of NPLs, which is even more pronounced in periods of domestic currency depreciation. In the presented models, the inflation rate is reported as statistically insignificant for sample countries. In the group of institutional variables, only financial market level of development is reported as statistically significant in relation to the level of NPL - with a more developed financial market the level of NPLs should be lower.
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Kumar, Anjani, Ashok K. Mishra, Sunil Saroj, and P. K. Joshi. "Institutional versus non-institutional credit to agricultural households in India: Evidence on impact from a national farmers’ survey." Economic Systems 41, no. 3 (September 2017): 420–32. http://dx.doi.org/10.1016/j.ecosys.2016.10.005.
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Garfinkle, Steven. "Shepherds, Merchants, and Credit: Some Observations on Lending Practices in Ur III Mesopotamia." Journal of the Economic and Social History of the Orient 47, no. 1 (2004): 1–30. http://dx.doi.org/10.1163/156852004323069385.
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AbstractThe numerous surviving loan documents from the Ur III period illustrate the vital role that credit played in the early Mesopotamian economy. The availability of credit was critical at every level of society. In this article, the form and function of credit in the Ur III period are described, along with lending practices and the activities of individual creditors. Despite the overwhelming scale of the institutional economies, there was significant room for non-institutional households to pursue economic gains through money-lending. This entrepreneurial activity took place in an economy that was familiar with a sophisticated range of possible credit transactions. Les nombreux documents de prêt qui survivent de l'époque de la Troisième Dynastie d'Ur illustrent le rôle essentiel que le crédit joue dans l'économie mésopotamienne archaïque. À chaque niveau de la société disposer de crédit était d'une importance essentielle. Cette contribution décrit les forme et fonction du crédit à la période d'Ur III, les pratiques de prêt et les activités des créanciers. En dépit de la grande taille des économies institutionnelles, il existait un secteur important où des maisons non-institutionelles pouvaient faire des gains en prêtant à intérêt. Cette activité d'entrepreneur s'exerçait dans une économie qui possédait une gamme sophistiquée de transactions de crédit.
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Swer, Charlene May. "Credit Participation among Rural Households in North Eastern India with special reference to Meghalaya." Spectrum: Humanities, Social Sciences and Management 7, no. 1 (December 15, 2020): 32–46. http://dx.doi.org/10.54290/spectrum/2020.v7.2.0004.
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This study is an attempt to examine the status of credit participation among rural households in NER and Meghalaya by using data sources from national surveys like All India Debt and Investment Survey (AIDIS) as well as primary data collected from Meghalaya. These surveys report that the majority of rural households in NER are indebted to institutional sources, mostly banks. Another main finding of the study is that there has been a reduction in the importance of non-institutional sources of credit in the states of the region except in Manipur. Money lenders do not occupy an important place in the rural credit markets of NER as compared to the importance of this source at the national level. Rural and agricultural households of the region have instead relied heavily on friends and relatives for disbursement of credit. In Meghalaya, the rate of participation in rural credit markets is quite low, reasons being lack of awareness and apprehension towards debt. However, household characteristics like gender of head of household, education level of the spouse, main occupation of the household, asset ownership, having a bank account and being a member of any social organization are factors that have been found to be associated with credit participation among rural households in the state.
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Jakhar, Babloo, Rohtas Kait, and Choote Lal. "AGRARIAN DISTRESS: A CASE STUDY OF INDEBTEDNESS AMONGST FARMERS IN HARYANA STATE." Ekonomika poljoprivrede 70, no. 4 (December 23, 2023): 1141–56. http://dx.doi.org/10.59267/ekopolj23041141j.
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This study addresses the critical issue of farmer indebtedness as the primary cause of agrarian distress in Haryana, India. The pervasive challenge of debt negatively impacts farmers’ livelihoods and agricultural sustainability, creating a cycle that hampers investment in modern farming technologies and sustainable practices. The study highlights the disproportionate access to credit, with institutional lenders favoring semi-medium, medium, and larger farmers, while small and marginalized farmers resort to non-institutional sources with higher interest rates. This unequal access perpetuates financial strain on the latter group. The findings emphasize the urgent need for government intervention and institutional support to assist marginalized and small farmers. The study advocates for comprehensive measures, including risk mitigation strategies, enhanced credit access, minimum support prices, and sustainable agricultural policies, to break the cycle of farmer debt and ensure the well-being of those crucial to our food systems.
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Diamoutene, Abdoul Karim. "Effets des Transferts de Fonds Internationaux Sur L'utilisation du Crédit par Les Exploitants Agricoles au Mali." Revue Internationale des Économistes de Langue Française 6, no. 1 (2021): 172–88. http://dx.doi.org/10.18559/rielf.2021.1.9.
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The purpose of this paper is to analyze the effects of remittances from inter- national migrants on the use of credit by farmers in Mali. The propensity score method was used to correct the endogeneity associated with remittances. The study concerns 9040 farmers whose data come from the survey of Agricultural Integrated Market for the 2017-2018 crop year. The results reveal a lack of effect of remittances on the use of global credit by farmers. However, the results according to the sources show a negative effect for formal credit due to input and seed credit from the Malian Textile Development Company (CMDT). Institutional (banking and microfinance) and informal loans were not significant. This lack of effect, on the part of institutional lenders, is linked to the non-use of the chan- nel of formal lenders for remittances and the high level of risk of agricultural activity, on the one hand, and the inability of financial institutions to develop products adapted to the needs of farmers. On the side of the informal lenders, it is justified by the insufficiency of the amounts of the transfers obliging the operators to always resort to this market
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Parker, Christian, Arun Srivastava, Paul Severs, and Cameron Saylor. "Holding ABS is still tricky: the EU securitisation regulation and its UK equivalent." Journal of Investment Compliance 22, no. 1 (April 8, 2021): 34–39. http://dx.doi.org/10.1108/joic-10-2020-0030.
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Purpose To highlight that the risk retention rules associated with the holding of securitization investments, commonly thought to apply only to the sponsors and manufacturers of securitisations, also affect EU institutional investors and potentially impact non-EU fund managers that invest in these assets. Design/methodology/approach To address which classes of investor are affected and then to provide an overview of the obligations on affected investors that do invest in securitization investments. Findings There is much that is straightforward about the relevant obligations but there are a number of quirks that have not necessarily been fully appreciated by the market: these include the applicability to investors on a “look through” basis that may, inter alia, affect US credit fund managers with EU institutional investors. Practical implications EU institutional investors that do invest in this asset class should be considering the need to take practical steps to prepare written due diligence materials; non-EU credit managers that run e.g. ABS funds offered into the EU or in which there may be EU institutional investors should consider if they may have any obligations under the EU Securitization Regulation. Originality/value The aspects of the Securitization Regulation that affect institutional investors and regular fund managers have not been addressed as thoroughly as they have by the main securitization sector (banks, CLO managers and similar). This article seeks to remedy that and should prove of value to compliance, legal and other professionals at those types of institution.
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Fani, Djomo, Rayner Tabetando, Ndonkeu Ndaghu, Udeme Ukpe, Emmanuel Gama, Nnoko Esuh, Sani Mohamadou, Emmanuel Chahul, and Njock Oben. "Evaluating demand side factors that affect institutional credit use and profitability of small-scale growers of roots and tubers: Evidence from Cameroon's South West region." Western Balkan Journal of Agricultural Economics and Rural Development 4, no. 2 (2022): 149–67. http://dx.doi.org/10.5937/wbjae2202149c.
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In this study, demand-side variables affecting the use of institutional finance with small-scale growers of roots and tubers profitability in Cameroon's southwest are investigated. Using a multi-step stratified and straightforward random sample process, 837 respondents were chosen. In study was found that as farm size grows, so does the likelihood of loan need. A farmer with more years of farming expertise has more opportunities to use and demand finance. Credit institutions are more willing to lend to couples because they believe they will be able to repay the loans collectively. Educated farmers are certain that using borrowing to grow their investment will yield output that will cover their loan repayments due to their knowledge of production processes and record keeping. Further, the profitability of institutional credit users for cassava, cocoyam, and yam was higher than that of non-users of institutional credit. New techniques for identifying financially disadvantaged rural poor in the Region should be created by focusing on metrics that would increase the efficiency of entrepreneurs and take them closer to the production frontier. One of these solutions may be for the government to encourage microfinance institutions to lend to businesses in the form of inputs rather than cash.
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Hoque, Md Ashraful, Syful Islam, Md Shofiqul Islam, Md Imrul Kaysar, and Ashraful Alam Fakir. "Effects of diverse land tenant types on agricultural credit receipt and its utilization: a case study from Mymensingh district of Bangladesh." Asian-Australasian Journal of Food Safety and Security 6, no. 1 (May 30, 2022): 18–26. http://dx.doi.org/10.3329/aajfss.v6i1.59782.
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Agricultural credit usually plays a crucial role in using optimal rates of production inputs especially for resource poor farmers. The present study aims to investigate the impact of diverse land tenant types on agricultural credit receipt as well as adequacy and utilization of receipt credits. A total of 60 samples were randomly selected for interview from Sadar Upazila of Mymensingh district. The study found three types of land tenants: owner-tenant, tenant-owner and pure-tenants. The result shows that the highest percentage of land was controlled by tenant-owner (56%) followed by owner-tenant (36%) and pure-tenant (8%) of the study areas. The result of the study shows that the owner-tenant and tenant-owner of the study areas have got more access to institutional sources of agricultural credit relative to pure-tenants because of their ability to offer land as security. The pure-tenants received lower amount of agricultural credit from Bangladesh Krishi Bank (BKB) relative to the owner-tenant and tenant-owner, but they can easily get credit from BKB, if they were able to show legal papers of the rented or mortgaged lands and a recommendation of the land owner. The study found that almost 50% received credit was used by the pure-tenant farmer for family expenditure and non-farm business rather farming. The result of regression analysis indicates that 1% increase of farm size would lead to an increase of the utilization of agriculture credit for farming purposes by 35% in the study areas. The result suggests that ensuring use of agriculture credit for farming purposes could boost up productivity of the pure-tenant farmers. Asian Australas. J. Food Saf. Secur. 2022, 6 (1), 18-26
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Junaidi, Yulian, Yulius Yulius, Elly Rosana, and Ogi Falma Manullang. "Farmer Institutional Dynamics in Vegetable Agribusiness Development Efforts in Kelurahan Talang Keramat, Banyuasin District." Jurnal Lahan Suboptimal : Journal of Suboptimal Lands 10, no. 2 (October 1, 2021): 178–86. http://dx.doi.org/10.36706/jlso.10.2.2021.516.
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Farmers' institutions, whether fostered by the government or those that have emerged from the initiatives of non-governmental organizations (NGOs), have an important position in developing vegetable agribusiness. This research aimed to compering the institutional dynamics of government-assisted farmers and non-government organizations and to formulate a collective learning institutional framework. The survey method was carried out by taking disproportional stratified random sampling, the data were analyzed using scoring, chi-square crosstabs and SWOT analysis. The results of this study indicate that the institutional dynamics of farmers are on average in moderate criteria with differences in dynamic indicators. Government-assisted groups prioritize achieving agribusiness goals, while NGO-assisted groups develop an egalitarian structure. Factors that significantly influence the institutional dynamics of farmers are farmer age, education, status in the organization, and access to credit. The joint learning framework from the technological aspect is aimed at discovering, sharing and using vegetable agribusiness development technology. Meanwhile, from the institutional aspect, it is aimed at strengthening organizations and networks.
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Hidayati, Emi, Akhmad Sofyan, Djoko Poernomo, and Supranoto. "Model of Institutional Integration of the Community Revolving Fund as a Source of Sustainable Capital and Poverty Alleviation in Rural Areas." International Journal of Science and Society 5, no. 4 (September 28, 2023): 579–93. http://dx.doi.org/10.54783/ijsoc.v5i4.822.
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This study attempts to create an integration model of institutional change from a government-driven initiative, specifically the integration of community revolving funds (DBM) into Village-Owned Enterprises (BUMDesa). In particular, every village in Banyuwangi Regency having a Village Credit Bank was included in this study. This study used descriptive qualitative research. The information was gathered using a combination of in-depth interviews, participant and non-participant observation, and document reviews. The data was examined for validity using a series of source triangulation, technique triangulation, and time triangulation. The institutional dynamics of community revolving funds (DBM) arising from government policies or programs. It was governed by overlapping rules from different independent bodies, which made it challenging to implement the transformation process and expensive to do so. The Village Credit Bank and the PNPM-Mandiri activity implementation unit (UPK) were eventually merged to create the Bumdesma business unit after overcoming numerous challenges. The Inter-Village Cooperation Agency (BKAD) and Bumdesma are two new organizations that were created as a result of the institutional change process but their existence does not enhance community services. The dynamics of institutional change and transformation led to disagreements over property rights, and uncertainty surrounding ownership status sparked the emergence of Free Riders who later converted BKD assets into KSPs run by a number of former managers, which in turn had an impact on the sale of BKD assets to private parties. The institutional transformation process caused BKD's institutional nature to move from private goods to common goods as a secondary bank of BRI. The oversight of Microfinance ex Village Credit Bank (BKD) is the sole aspect of Bumdesa business units that are covered in this research. This research is able to contribute a model of integrating the management of Bumdesa as a Common Resource as an effort to alleviate poverty in Indonesia.
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Deb, L., MAR Sarkar, MAB Siddique, and R. Begum. "Is Agricultural Credit Programme Effective in Boro Cultivation? Evidence from State-owned Bank of Mymensingh District." Bangladesh Rice Journal 24, no. 1 (April 30, 2021): 85–95. http://dx.doi.org/10.3329/brj.v24i1.53242.
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High input-intensive Boro rice cultivation needs substantial agricultural credit for the resource-poor Bangladeshi farmers. An investigation was conducted at Fulbaria upazila of Mymensingh district to assess loan attainment cost from Bangladesh Krishi Bank (BKB) and its utilization pattern; evaluate the effects of credit on Boro cultivation, and identify the major drivers of the agricultural credit programme. For the study, 140 farmers were divided into two groups: those who took a loan from BKB and those who did not. Results revealed that the borrowers had to pay Tk 10.23 for getting a hundred taka loan from BKB most of which was an unofficial cost. More than half of the obtained loan was used for Boro cultivation whereas 21% was used for family consumption and the rest (25%) was used for other purposes such as reimbursement of the previous loan from formal and informal sources, wedding and other income-generating activities including petty business. BKB credit borrowers obtained more benefits through Boro cultivation than non-borrowers. The major strengths of the BKB’s agricultural credit programme were well-established infrastructure, experienced manpower, country-wide network, and lower interest rate. Whereas complex and lengthy institutional procedures, the inevitability of collateral and poor institutional capacity were being revealed as the weaknesses of the programme. Prevalence of brokers or corrupt officials and political influence were identified as the major constraints for the loan acquirement. More advanced research is recommended, with an emphasis on agricultural credit programmes, to ensure their effectiveness.
Bangladesh Rice J. 24 (1): 85-95, 2020
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Morakinyo, Akinola Ezekiel, and Mabutho Sibanda. "The Determinants of Non-Performing Loans in the MINT Economies." Journal of Economics and Behavioral Studies 8, no. 5(J) (October 30, 2016): 39–55. http://dx.doi.org/10.22610/jebs.v8i5(j).1430.
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This paper investigates the major determinants of non-performing loans in the MINT (Mexico, Indonesia, Nigeria and Turkey) economies. Identifying major determinants of non-performing loans, which are observed to be growing in these countries in recent time, will also guide policy and forecasting future levels that will be useful for pre-emptive policies and actions. It uses static panel data and dynamic panel model analyses. Evidence suggests that in the four economies, capital adequacy ratio, liquidity ratio, total bank credit andreturn on assets are significant bank-specific determinants of non-performing loans. Also, while the return on assets, liquidity ratio and capital adequacy ratioshow a negative and significant relationship with non-performing loans, nominal exchange rate, money supply growth rate, total bank credit and lending rate show positive and very significant relationships with non-performing loans. Finally, corruption, an institutional variable, shows a very strong positive relationship with non-performing loans.
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Miller, Michael T., and Kenda S. Grover. "The Considerations on a Classification Scheme for Community College Workforce Development Programs." Journal of Public Administration and Governance 11, no. 4 (November 9, 2021): 1. http://dx.doi.org/10.5296/jpag.v11i4.18948.
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Community colleges actively engage in a broad array of pre- and in-employment workforce development programs. These programs have typically been categorized as credit or non-credit bearing, but this classification is problematic and does not account for the complexity of the type, size, or motivation for offering the program. This discussion categorizes workforce development programs based on their funding source, including federal, state, industry/private, institutional, and user based programs. This type of classification allows for a better understanding of who is being served by programs, how they might be used in the future, and ultimately, provides some foundation for program assessment.
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PRAVEEN, K. V., A. SURESH, A. A. REDDY, and D. R. SINGH. "Risks and adaptation strategies in rainfed agriculture in India: An analysis." Indian Journal of Agricultural Sciences 88, no. 6 (June 14, 2018): 958–63. http://dx.doi.org/10.56093/ijas.v88i6.80654.
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Farmers in the rainfed regions of India have to routinely deal with risks from biotic and abiotic sources, that varies with the region and crop cultivated. An assessment of the risk sources and adaptation strategies is attempted in this paper using a total of 500 farmers combinedly from Maharashtra and Telangana. Data collected using a questionnaire in Likert scale format was analysed using principal component factor analysis. With regard to the willingness to take risk by the farmers, just below half of the farmers were risk averse. Issues faced by the farmers with regard to inputs, private information sources, public information sources, irrigation, non-institutional credit sources, custom hiring services, and institutional credit sources were perceived as major risk sources. Strategies perceived by farmers as important to adapt to the risk situations were identified as the ones related to varietal management, community support, price stabilisation mechanism, government support, and self-insurance.
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Ibrahim, Habiba. "Do institutions matter?" Journal of Enterprising Communities: People and Places in the Global Economy 13, no. 3 (July 8, 2019): 319–32. http://dx.doi.org/10.1108/jec-04-2018-0027.
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Purpose Guided by the institutional theory of savings, the purpose of this study is to assess the institutional elements of rotating, savings and credit associations (ROSCAs) that enable participants to save. Design/methodology/approach The study used data from in-depth qualitative interviews (N = 10) conducted among the ROSCA group leaders from African immigrant communities in the USA. Findings The primary goal for joining the ROSCA group among participants is to achieve economic stability. The results of the study postulate that, through institutional mechanisms and social networks, ROSCAs create an environment for families to save and invest. The emphasis on the concept of “you cannot save alone” underscores the importance of supportive structures to enable low-income households to save. Although “alternative savings programs” such as ROSCAs are imagined as something that less well-to-do persons use, the findings from this study demonstrate that such strategies also appeal to some people with higher socioeconomic status. This appeal and utility speaks to the importance of ROSCAs as an institutional response, rather than just an informal arrangement among persons known to each other. Research limitations/implications It is prudent to bear in mind that the study sample is not nationally representative, and therefore, the results presented cannot be generalized to immigrants across the country. However, as one of the few ROSCA studies in the USA, the findings from this study make generous contributions to the immigrants’ savings and ROSCA practices literature. Practical implications ROSCAs could be used as a bridge to the formal financial institutions. Non-profit agencies working with these communities could work with these groups to report ROSCA payments to the major credit bureaus, to help them build a credit line in their new country. Originality/value Previous studies of ROSCAs have assessed ROSCAs as community support systems and social networks. The current study has analyzed ROSCAs from an institutional perspective by examining the institutional characteristics of ROSCAs comparable to the institutional determinants of savings that enable savings among the participants.
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Baruah, Prasenjit Bujar. "Financial Access of Unorganised Manufacturing Enterprises in Assam." Space and Culture, India 2, no. 2 (November 1, 2014): 4. http://dx.doi.org/10.20896/saci.v2i2.84.
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The unorganised sector is no more considered as a residual one in the developing and in the underdeveloped countries; rather it is considered as a common component of such economies. This sector is playing an important role in those countries both in terms of its contribution to the national income and employment generation. However, despite its importance, the enterprises in this sector are facing various problems. A large segment of enterprises state non-accessibility to credit is the most important problem faced by them. Moreover, existing reports and literature states that the formal financial institutions are not interested to deal with the unorganised enterprises. As a result, they have to depend on the informal sources of credit. This present paper based on secondary data analyses the various characteristics of unorganised manufacturing enterprises in Assam and their accessibility to credit. Results indicate that the average amount of outstanding loan per unorganised manufacturing enterprise in Assam is smaller than that of all-India average. Again, the enterprises in the rural areas are more dependent on the non-institutional sources of credit when compared to those in the urban areas. Similarly, the smaller enterprises have limited access to credit from the formal financial institutions as compared to the larger enterprises.
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Liu, Bai, Yibo Wang, and Yongyi Shou. "Trade credit in emerging economies: an interorganizational power perspective." Industrial Management & Data Systems 120, no. 4 (March 27, 2020): 768–83. http://dx.doi.org/10.1108/imds-05-2019-0292.
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PurposeThe extant literature recognizes that trade credit is influenced by the power imbalance between buyers and suppliers but most studies focus on either buyer power or supplier power. The purpose of this study is to investigate how buyer power and supplier power interact and jointly influence trade credit. Moreover, this study examines the moderating effects of political ties in an emerging economy context.Design/methodology/approachA research framework was developed by combining resource dependence theory and institutional theory to investigate the interactive effects of market power (i.e. market share and supplier concentration) and non-market power (i.e. political ties) on trade credit. The proposed hypotheses were empirically tested by a fixed effects model using secondary data from 2,433 listed firms in China.FindingsThe results show that a buyer firm's market share promotes trade credit but this effect is weakened by supplier concentration. Moreover, the buyer's political ties enhance the impact of market share on trade credit and attenuate the negative moderating effect of supplier concentration.Originality/valueThis study contributes to the trade credit and supply chain power literature by identifying the interactive effects of market share, supplier concentration and political ties in trade credit. It advances our understanding of how trade credit is jointly determined by a variety of factors in emerging economies.
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Kozyuk, Victor. "PROMULGATION OF THE MACROPRUDENTIAL REGULATION AND THE GUIDELINES FOR THE NBU MACROPRUDENTIAL POLICY." JOURNAL OF EUROPEAN ECONOMY, Vol 17, No 2 (2018) (2018): 187–208. http://dx.doi.org/10.35774/jee2018.02.187.
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Post-crisis spread of macroprudential regulation requires some generalizations and identification of the ways of adapting it to Ukraine. Current consensus about taxonomy and functionality of macroprudential toolkit is corresponded with empirical findings of potential efficiency of such instruments to restrain credit and assets price inflation. At the same time, macroprudential policy may be vulnerable to possibilities of large borrowing abroad and credit activity leakage on unregulated segments of financial system. In the paper it is noted that commodity rich economies constitute a specific profile there macroprudential policy is meant to diminish vulnerability to commodity prices volatility. Macroprudential instruments may help to restrain abnormal credit expansion in non-tradable sectors and bound sectoral credit concentration, thus opening new opportunities for sectoral policy. It is proved that macroprudential policy guidelines for National Bank of Ukraine should be determined by the specifics of implementing macroprudential policy in the environment of capital flows being influenced by the commodity prices, as well as by specific institutional distortions caused by oligarchical banking.
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Mazloev, Vitaly Z., Alim B. Fiapshev, and Konstantin K. Kumekhov. "Bank credit and its role in real investments of non-financial organizations in conditions of macroeconomic instability and regional differentiation." Economy of agricultural and processing enterprises, no. 2 (2023): 39–48. http://dx.doi.org/10.31442/0235-2494-2023-0-2-39-48.
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The article describes the general and special features of the economy of emerging market countries, shows the distinctive features of the Russian economy. The insufficient effectiveness of indirect instruments for regulating investment processes, including bank credit, is aggravated in the Russian Federation by the action of non-economic factors, state regulatory practices, unresolved structural and institutional problems. The authors assess the quantitative and qualitative aspects of the investment activity of organizations of the non-financial sector of the Russian economy, show the role of bank credit in its stimulation. Separately, the impact of the tightening of banking supervision, expressed in a large-scale exodus from the market of small and medium-sized banks, is analyzed, special attention is paid to gaps in the level of socio-economic development of regions and their investment opportunities. The directions of increasing the role of bank credit in the growth of real investments are determined, which largely go beyond the monetary sphere and determine the need to improve the entire system of state influence on economic processes.
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Chen, Mary, Seung Jung Lee, Daniel Neuhann, and Farzad Saidi. "Less Bank Regulation, More Non-Bank Lending." Finance and Economics Discussion Series, no. 2023-026 (May 2023): 1–38. http://dx.doi.org/10.17016/feds.2023.026.
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Bank deregulation in the form of the repeal of the Glass-Steagall Act facilitated the entry of non-bank lenders into the market for syndicated loans during the pre-2008 credit boom. Institutional investors disproportionately purchase tranches of loans originated by universal banks able to cross-sell loans and underwriting services to firms (as permitted by the repeal). A shock to cross-selling intensity increases loan liquidity at origination and over time. The mechanism is that non-loan exposures ensure monitoring even when banks retain small loan shares. Our findings complement the conventional view that regulatory arbitrage caused the rise of non-bank lenders.
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Denkyirah, Elisha Kwaku, Ahmed Abdul Aziz, Elijah Kofi Denkyirah, Ofori Obeng Nketiah, and Elvis Dartey Okoffo. "Access to Credit and Constraint Analysis: The Case of Smallholder Rice Farmers in Ghana." Journal of Agricultural Studies 4, no. 2 (March 7, 2016): 53. http://dx.doi.org/10.5296/jas.v4i2.9167.
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The study assessed rice farmers’ access to credit and constraints in rice production in the Tolon District of Ghana. A total of 140 rice farmers were sampled for the study using multi-stage sampling technique. The probit model was used to estimate the factors that affected rice farmers’ access to credit. The Kendall’s coefficient of concordance was used to assess the constraints in rice production. The results of the study revealed that majority of the rice farmers accessed credit from family and friends and invested the credit into non-agricultural activities. The probit result revealed that age, marital status, member of farmer based organization, extension visit, record keeping and farm income were the significant variables that influenced rice farmers’ access to credit. The results also revealed that high cost of inputs and pest were the most pressing institutional and technical constraints in rice production, respectively. The study recommends that credit should be converted to physical inputs and other services and delivered to farmers to help minimize credit diversion from the farm sector. Rice farmers should be encouraged to form farmer groups and keep records of farming activities considering the fact that it positively influenced farmers’ access to credit. Subsidies should be provided on farm inputs. Effective ways of eliminating pest on rice fields should be developed since it was a major challenge facing the rice farmers in their production.
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Ajah, EA, EB Etowa, EB Effa, UI Ofem, HE Iso, OI Ettah, and IA Asuquo. "Financial inclusion of urban agro-processors: effect of credit on poverty status of roasted plantain vendors in Calabar, Nigeria." African Journal of Food, Agriculture, Nutrition and Development 24, no. 2 (February 29, 2024): 25468–88. http://dx.doi.org/10.18697/ajfand.126.23545.
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This study analysed the effect of credit on the poverty status of roasted plantain vendors in Calabar, Nigeria. The study described sources of credit, comparing the poverty status of credit recipients versus non-recipients, and the relationship between credit access and poverty index alongside the relationship between socioeconomic factors and poverty index. Data was collected from 110 randomly sampled roasted plantain vendors with the use of structured questionnaire. Poverty was measured with the Foster, Greer and Thorbecke (FGT) model class of weighted poverty measures. Descriptive statistics were used to examine poverty status, access to credit and the sociodemographic attributes of the roasted plantain vendors. Next, using descriptive statistics, the poverty status of the vendors who accessed credit was compared to those who did not access credit. Finally, the association between access to credit and poverty index was analyzed with logistic regression model while adjusting for the effects of sociodemographic factors. Descriptive statistics showed that 60% of the vendors were female, the average age was 35 years, and the average household size was four persons. Precisely, 91% of the roasted plantain vendors had completed primary or higher education. Exactly, 64.5% received credit, while 30.79% reported non-institutional lenders as sources of credit. The mean monthly income was N48,036.36 (US$116.89). Poverty incidence was lower among credit recipients (0.268) compared to non-recipients (0.487). Credit access (OR = .083, p<.01) and household (OR=2.496, p<.01) had statistically significant associations with the poverty index. Policies promoting structural transformation are recommended for sustainable financial inclusion. An effective economic growth and development program, for example, will increase productive capacities and reduce capital losses, increase creditworthiness, motivate capital expansion and sustainable growth. Also, it was recommended that cooperative formation among the vendors is required. Membership of such a cooperative will increase credit access through reduced transaction cost, higher group’s creditworthiness/borrowing experience and stronger negotiation capacity. A Nigerian economic transformation program to promote increased productive capacities and reduced capital losses is necessary for any financial inclusion policies to sustainably alleviate poverty among deprived agro-processors such as the roasted plantain vendors. Such programs will include financial literacy including banking and loan repayments, business innovations, and business plan development. Key words: Credit, Financial inclusion, Micro-agro-processors, Plantain roasting, Poverty, Urban agriculture
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Ajah, EA, EB Etowa, EB Effa, UI Ofem, HE Iso, OI Ettah, and IA Asuquo. "Financial inclusion of urban agro-processors: effect of credit on poverty status of roasted plantain vendors in Calabar, Nigeria." African Journal of Food, Agriculture, Nutrition and Development 24, no. 2 (February 29, 2024): 25468–88. http://dx.doi.org/10.18697/ajfand.127.23545.
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This study analysed the effect of credit on the poverty status of roasted plantain vendors in Calabar, Nigeria. The study described sources of credit, comparing the poverty status of credit recipients versus non-recipients, and the relationship between credit access and poverty index alongside the relationship between socioeconomic factors and poverty index. Data was collected from 110 randomly sampled roasted plantain vendors with the use of structured questionnaire. Poverty was measured with the Foster, Greer and Thorbecke (FGT) model class of weighted poverty measures. Descriptive statistics were used to examine poverty status, access to credit and the sociodemographic attributes of the roasted plantain vendors. Next, using descriptive statistics, the poverty status of the vendors who accessed credit was compared to those who did not access credit. Finally, the association between access to credit and poverty index was analyzed with logistic regression model while adjusting for the effects of sociodemographic factors. Descriptive statistics showed that 60% of the vendors were female, the average age was 35 years, and the average household size was four persons. Precisely, 91% of the roasted plantain vendors had completed primary or higher education. Exactly, 64.5% received credit, while 30.79% reported non-institutional lenders as sources of credit. The mean monthly income was N48,036.36 (US$116.89). Poverty incidence was lower among credit recipients (0.268) compared to non-recipients (0.487). Credit access (OR = .083, p<.01) and household (OR=2.496, p<.01) had statistically significant associations with the poverty index. Policies promoting structural transformation are recommended for sustainable financial inclusion. An effective economic growth and development program, for example, will increase productive capacities and reduce capital losses, increase creditworthiness, motivate capital expansion and sustainable growth. Also, it was recommended that cooperative formation among the vendors is required. Membership of such a cooperative will increase credit access through reduced transaction cost, higher group’s creditworthiness/borrowing experience and stronger negotiation capacity. A Nigerian economic transformation program to promote increased productive capacities and reduced capital losses is necessary for any financial inclusion policies to sustainably alleviate poverty among deprived agro-processors such as the roasted plantain vendors. Such programs will include financial literacy including banking and loan repayments, business innovations, and business plan development. Key words: Credit, Financial inclusion, Micro-agro-processors, Plantain roasting, Poverty, Urban agriculture
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Sharifi, Sirus, Arunima Haldar, and S. V. D. Nageswara Rao. "The relationship between credit risk management and non-performing assets of commercial banks in India." Managerial Finance 45, no. 3 (March 11, 2019): 399–412. http://dx.doi.org/10.1108/mf-06-2018-0259.
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Purpose The purpose of this paper is to examine the impact of credit risk components on the performance of credit risk management and the growth in non-performing assets (NPAs) of commercial banks in India. Design/methodology/approach The data are obtained from primary and secondary sources. The primary data are collected by administering questionnaire among risk managers of Indian banks. The secondary data on NPAs of Indian banks are from annual reports and Prowess database compiled by the Centre for Monitoring Indian Economy. Multiple linear regression is used to estimate the models for the study. Findings The results suggest that the identification of credit risk significantly affects the credit risk performance. The results are robust as credit risk identification is negatively related to annual growth in NPAs or loans. There is evidence in support of a priori expectation of better credit risk performance of private banks compared to that of government banks. Practical implications The study has implications for Indian banks suffering from a high level of losses due to bad loans. In addition, it will have implications for the implementation of new Basel Accord norms (Basel III) by the Reserve Bank of India. Social implications The high and rising level of NPAs will have adverse consequences for credit flow in the economy in the absence of appropriate intervention by government and central bank in the form of changes in institutional and regulatory infrastructure. The problems in banking and financial services sector will lead to lower industrial and aggregate economic growth, and lower (or negative) growth in employment. Originality/value There is little evidence on credit risk management practices of Indian banks, and its relationship with credit risk performance and NPA growth. The need for an effective risk management system to manage credit risk assumes importance and urgency in the context of high and rising NPAs of Indian banks, and the consequences for the Indian economy.
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D'Rosario, Michael, and Calvin Hsieh. "Predicting Credit Rating Migration Employing Neural Network Models." International Journal of Strategic Decision Sciences 9, no. 4 (October 2018): 70–85. http://dx.doi.org/10.4018/ijsds.2018100105.
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Credit rating migration ranks amongst the most pertinent issues concerning institutional lenders and investors alike. There are a number of studies that have employed both parametric and non-parametric methodologies to forecast credit rating migration, employing machine learning methods; and notably, artificial intelligence methods becoming increasingly popular. The present study extends upon research within the extant literature employing a novel estimation method, a neural network modelling technique, herewith the MPANN (multi-layer neural network). Consistent with the extant literature, the present article identifies that the legal framework and system of taxation enacted within a polity are pertinent to predicting rating migration. However, extending upon traditional estimation techniques the study identifies that a number of different model calibrations achieve greater predictive accuracy than traditional parametric regression. Notably, the method is able to achieve superior goodness of fit and predictive accuracy in determining credit rating migration than models employed within the extant literature.
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Wafula, Jacob, Muli Maingi, and Dennis Bulla. "Effect of Credit Monitoring Practices on Loan Nonperformance among Microfinance Institutions in Nairobi County, Kenya." African Journal of Empirical Research 4, no. 2 (July 5, 2023): 32–40. http://dx.doi.org/10.51867/ajernet.4.2.4.
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The Kenyan microfinance industry faces many challenges. Studies point to nonperforming loans as one of the main problems facing microfinance institutions in Kenya, which has led to reduced profitability and institutional collapse in some cases. Noncompliance with credit monitoring and loan policy provisions have been cited as some of the factors leading to increased non-performing loans. The main objective was to determine the effect of Credit Monitoring on nonperforming loans among microfinance institutions in Nairobi County. Information Asymmetry theory guided the study. The study’s main goal was to assess how credit management methods in Nairobi County’s microfinance institutions influence the amount of non-performing loans. The study employed correlation research design where a quantitative approach was adopted. Stratified proportionate random sampling was adopted where data was obtained from 48 microfinance institutions in Nairobi County. The population constituted 192 respondents comprising general managers, credit managers, finance officers, and accountants. The study sampled 128 staff who responded to questionnaires designed on a 5-point Likert scale. Data were subjected to analysis by use of SPSS, where correlation demonstrated possible relationships of variables while regression predicted the effects of changing variables on the defaulted loans. The study found that there was a positive significant effect of credit monitoring practice (β=-0.498, t=-5.099, p< 0.05). The null hypotheses were rejected and alternative hypotheses were accepted that credit monitoring practice had a significant influence on loan nonperformance among microfinance entities in Nairobi County, Kenya. Based on the findings of the study, the researcher recommends that microfinance entities should strengthen credit-monitoring practices to minimize debt writing off and loan nonperformance.
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Atiase, Victor Yawo, Samia Mahmood, Yong Wang, and David Botchie. "Developing entrepreneurship in Africa: investigating critical resource challenges." Journal of Small Business and Enterprise Development 25, no. 4 (August 13, 2018): 644–66. http://dx.doi.org/10.1108/jsbed-03-2017-0084.
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Purpose By drawing upon institutional theory, the purpose of this paper is to investigate the role of four critical resources (credit, electricity, contract enforcement and political governance) in explaining the quality of entrepreneurship and the depth of the supporting entrepreneurship ecosystem in Africa. Design/methodology/approach A quantitative approach based on ordinary least squares regression analysis was used. Three data sources were employed. First, the Global Entrepreneurship Index (GEI) of 35 African countries was used to measure the quality of entrepreneurship and the depth of the entrepreneurial ecosystem in Africa which represents the dependent variable. Second, the World Bank’s data on access to credit, electricity and contract enforcement in Africa were also employed as explanatory variables. Third, the Ibrahim Index of African Governance was used as an explanatory variable. Finally, country-specific data on four control variables (GDP, foreign direct investment, population and education) were gathered and analysed. Findings To support entrepreneurship development, Africa needs broad financial inclusion and state institutions that are more effective at enforcing contracts. Access to credit was non-significant and therefore did not contribute to the dependent variable (entrepreneurship quality and depth of entrepreneurial support in Africa). Access to electricity and political governance were statistically significant and correlated positively with the dependent variables. Finally, contract enforcement was partially significant and contributed to the dependent variable. Research limitations/implications A lack of GEI data for all 54 African countries limited this study to only 35 African countries: 31 in sub-Saharan Africa and 4 in North Africa. Therefore, the generalisability of this study’s findings to the whole of Africa might be limited. Second, this study depended on indexes for this study. Therefore, any inconsistencies in the index aggregation if any could not be authenticated. This study has practical implications for the development of entrepreneurship in Africa. Public and private institutions for credit delivery, contract enforcement and the provision of utility services such as electricity are crucial for entrepreneurship development. Originality/value The institutional void is a challenge for Africa. This study highlights the weak, corrupt nature of African institutions that supposedly support MSME growth. Effective entrepreneurship development in Africa depends on the presence of a supportive institutional infrastructure. This study engages institutional theory to explain the role of institutional factors such as state institutions, financial institutions, utility providers and markets in entrepreneurship development in Africa.