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1
ÖZŞUCA, Ekin Ayşe. "Revisiting the bank lending channel in Turkey under the unconventional monetary policy framework." Business & Management Studies: An International Journal 10, no. 3 (September 25, 2022): 1011–21. http://dx.doi.org/10.15295/bmij.v10i3.2099.
Повний текст джерелаАнотація:
This paper provides empirical evidence regarding the bank lending channel under Turkey's unconventional monetary policy framework. Towards this end, the impact of changes in monetary policy stance on bank credit growth is investigated using a dynamic panel data modelling approach between 2011 and 2019. The empirical results reveal cross-sectional heterogeneity in the loan supply of Turkish banks following a change in monetary policy, which implies an operative bank lending channel in the post-2010 period of the policy mix. Small, liquidity-constrained, and inadequately capitalized banks tend to experience sharper contractions in their lending during monetary policy tightening episodes. Besides, in terms of bank-specific characteristics, the findings demonstrate that larger bank size and capital is associated with a higher loan supply. On the contrary, liquidity is found to harm bank lending.
2
Liberti, José María, and Jason Sturgess. "The Anatomy of a Credit Supply Shock: Evidence from an Internal Credit Market." Journal of Financial and Quantitative Analysis 53, no. 2 (April 2018): 547–79. http://dx.doi.org/10.1017/s0022109017000837.
Повний текст джерелаАнотація:
We investigate how financial contracting interacts with lending-channel effects by tracing the anatomy of a credit supply shock using micro-level data from a multinational bank. Borrowers with stronger lending relationships, higher nonlending revenues, and those that pledge collateral, especially outside assets and real estate, experience less credit rationing. Consistent with a tightening of financing constraints post shock, borrower composition shifts toward larger and less risky firms, and loans exhibit higher collateralization rates. Our analysis highlights the value of relationships and suggests that relationship banking is a channel through which borrowers can mitigate lending-channel effects.
3
ISSAOUI, Ibtissem, and Mahmoud-Sami NABI. "Liquidity Shocks and The Bank Lending Channel: Evidence from Lower-Middle Income Economies." International Journal of Business and Management Research 10, no. 2 (June 30, 2022): 40–52. http://dx.doi.org/10.37391/ijbmr.100202.
Повний текст джерелаАнотація:
This paper examines the impacts of central banks’ liquidity injections on commercial banks’ credit supply in thirty-two lower-middle income economies over the period 1990 until 2020. We use a SVAR panel model to analyze the dynamic interactions between the central bank balance sheet policy, bank liquidity, and bank lending. The results show that liquidity injections have a non-significant impact on the credit to the private sector and a persistent positive impact on banks’ liquid reserves. These results confirm the inefficiency of the bank lending channel in transmitting the central bank balance sheet monetary policy to the real economy in the considered LMIC’s.
4
Ma, Zhong Hua. "Bank Lending and Trade Credit: Evidence from Chinese Firms." Applied Mechanics and Materials 52-54 (March 2011): 1470–75. http://dx.doi.org/10.4028/www.scientific.net/amm.52-54.1470.
Повний текст джерелаАнотація:
The determinants and roles of bank lending, which is formal financing channel and outsides the supply chain, and trade credit, which is informal financing channel and insides the supply chain, are analyzed here through listed firms in China over 2006-2009. In our model we consider the trade credit as a complementary role and more important for small firms. Also with the firms different industry classified, we give the performance of bank lending and trade credit respectively. The estimation results and analysis are given detailed in our paper.
5
Milcheva, Stanimira. "A bank lending channel or a credit supply shock?" Journal of Macroeconomics 37 (September 2013): 314–32. http://dx.doi.org/10.1016/j.jmacro.2013.03.004.
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Cohen, Lee Jeremy, Marcia Millon Cornett, Hamid Mehran, and Hassan Tehranian. "The Effect of State Solvency on Bank Values and Credit Supply: Evidence from State Pension Cut Legislation." Journal of Financial and Quantitative Analysis 53, no. 4 (July 12, 2018): 1839–70. http://dx.doi.org/10.1017/s0022109018000248.
Повний текст джерелаАнотація:
We find the financial condition of states impacts bank credit supply through their municipal bond holdings. In particular, we treat sudden political and statutory actions during the 2011 union bargaining rights debates in Wisconsin and Ohio as exogenous shocks to state solvency. We show bank valuations and municipal bond spreads adjust to the announcements, and, over longer horizons, a new lending channel linked to state solvency emerges, whereby banks supply credit as municipal bond appreciations free up capital.
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Afdol, Al, Mardiana Mardiana, and Any Widayatsar. "Analysis Of Interest Rate Through Credit Channel And The Amount Of The Money Circulation On Indonesian Economic Growth 2005 – 2019." Jurnal Keuangan dan Perbankan (KEBAN) 1, no. 2 (June 12, 2022): 47–58. http://dx.doi.org/10.30656/jkk.v1i2.4821.
Повний текст джерелаАнотація:
The purpose of this study was to analyze the relationship between Interest Rates Through Credit Channels and the Money Supply on Indonesia's Economic Growth. The data used in this study is time series data from 2005 to 2019, sourced from Bank Indonesia (BI) and the Central Statistics Agency (BPS). The analytical method used in this study is Vector Autoregression (VAR) using the Eviews version 10.0 computer application program. The results show that interest rates have a negative and significant effect on lending in the short term, lending as a variable connecting interest rates has a positive and significant effect on economic growth, both in the short and long term. The banking credit variable has a significant effect on the money supply in the long term, while the money supply in both the short and long term has a negative effect on economic growth. The results of the Granger causality test show that there is a one-way causal relationship between interest rates and bank credit in Indonesia, interest rates with economic growth if we use 10% and a one-way relationship between bank credit and the money supply.
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De Marco, Filippo. "Bank Lending and the European Sovereign Debt Crisis." Journal of Financial and Quantitative Analysis 54, no. 1 (September 25, 2018): 155–82. http://dx.doi.org/10.1017/s0022109018000510.
Повний текст джерелаАнотація:
I investigate whether bank exposures to sovereign debt during the European debt crisis affected the real economy. I show that a shock to the marked-to-market (MTM) value of bank exposures to sovereign debt led to credit tightening in 2010–2011 that had negative real effects on small and young firms. Because banks do not usually mark their holdings of sovereign bonds to market, I explore the transmission channels of the unrealized losses on credit supply. I show that a shock to MTM exposures reduced short-term bank funding from U.S. money market funds rather than affecting equity or working through alternative channels.
9
Awdeh, Ali, Zouhour Jomaa, and Mohamad Kassem. "The Effect of Bank Heterogeneity on the Interest Rate Channel in Lebanon." Journal of Central Banking Theory and Practice 9, no. 1 (January 1, 2020): 81–95. http://dx.doi.org/10.2478/jcbtp-2020-0005.
Повний текст джерелаАнотація:
AbstractThe effect of bank heterogeneity on the transmission of monetary policy is capturing an increasing attention, and the debate on how bank specific characteristics may determine their reaction to monetary actions is mounting. This paper participates in this flow of research by studying the reaction of 40 banks operating in Lebanon between 1994 and 2017, to a change in lending interest rate, taking into consideration: size, market power, capitalisation, credit risk, and liquidity. The empirical results show that the impact of a change in interest rate on loan supply depends on bank market power and bank liquidity only. Consequently, interest rate channel in Lebanon operates through banks with high market power and banks with high liquidity stocks.
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Berrospide, Jose M., Arun Gupta, and Matthew P. Seay. "Un-used Bank Capital Buffers and Credit Supply Shocks at SMEs during the Pandemic." Finance and Economics Discussion Series 2021, no. 041 (July 15, 2021): 1–38. http://dx.doi.org/10.17016/feds.2021.043.
Повний текст джерелаАнотація:
Did banks curb lending to creditworthy small and mid-sized enterprises (SME) during the COVID-19 pandemic? Sitting on top of minimum capital requirements, regulatory capital buffers introduced after the 2008 global financial crisis (GFC) are costly regions of "rainy day" equity capital designed to absorb losses and provide lending capacity in a downturn. Using a novel set of confidential loan level data that includes private SME firms, we show that "buffer-constrained" banks (those entering the pandemic with capital ratios close to this regulatory buffer region) reduced loan commitments to SME firms by an average of 1.4 percent more (quarterly) and were 4 percent more likely to end pre-existing lending relationships during the pandemic as compared to "buffer-unconstrained" banks (those entering the pandemic with capital ratios far from the regulatory capital buffer region). We further find heterogenous effects across firms, as buffer-constrained banks disproportionately curtailed credit to three types of borrowers: (1) private, bank-dependent SME firms, (2) firms whose lending relationships were relatively young, and (3) firms whose pre-pandemic credit lines contractually matured at the start of the pandemic (and thus were up for renegotiation). While the post-2008 period saw the rise of banking system capital to historically high levels, these capital buffers went effectively unused during the pandemic. To the best of our knowledge, our study is the first to: (1) empirically test the usability of these Basel III regulatory buffers in a downturn, and (2) contribute a bank capital-based transmission channel to the literature studying how the pandemic transmitted shocks to SME firms.
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NGUYỄN PHÚC, CẢNH, ANH NGUYỄN QUỐC, and QUÂN NGUYỄN HỒNG. "Effects of Bank Characteristics on Transmission of Monetary Policy Through Bank Lending Channel in Vietnam." Journal of Asian Business and Economic Studies 219 (January 1, 2014): 49–65. http://dx.doi.org/10.24311/jabes/2014.219.1.02.
Повний текст джерелаАнотація:
Credits from commercial banks influence various economic components, such as investment and consumption of durables and changes in monetary policy and therefore, affect the economy through supply of credits by commercial banks. This paper explores transmission of monetary policy through commercial bank lending channel in Vietnam in 2003-2012 by examining reaction of each bank to changes in monetary policy. Authors use the GMM (generalized method of moments) for panel data gathered from financial statements of commercial banks in 2003-2012. Results show that GMM helps detect the existence of bank lending channel in the transmission mechanism in Vietnam, and bank characteristics relating to equity capital, liquidity assets and risk degrees affect their flexibility when responding to changes in monetary policy in the surveyed period.
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Thirunavukkarasu, Dr S., and T. Lashmi Pradha. "Transmission mechanism of monetary policy in India - An Expost Study." JOURNAL OF DEVELOPMENT ECONOMICS AND MANAGEMENT RESEARCH STUDIES 09, no. 13 (2022): 48–60. http://dx.doi.org/10.53422/jdms.2022.91306.
Повний текст джерелаАнотація:
The transmission mechanism of monetary policy is correlated to lending which expands aggregate demand in the economy. The banking system form an important place in the monetary policy transmission. The channels of monetary policy transmission are: Interest Rate Channel, Credit or Loan Supply Channel, Exchange Rate Channel, and Asset Price Channel. The financial prices include interest rates, exchange rates, yields, asset prices, and equity prices, and the financial quantities consists of money supply, credit aggregates, supply of government bonds and foreign denominated assets. RBI uses various monetary policy frameworks over the years which is classified as pre-monetary targeting (1947 to 1984-85), monetary targeting (1984-85 to 1997- 98), Multiple Indicators approach (1998-99 to 2014), Inflation Targeting (from 2013 onwards), and Flexible Inflation Targeting (FIT). MCLR also drastically decreased for all these banks from 2019 to 2021. The external benchmark has increased for the three types of banks from 2019 to 2021. The repo rate gives a contrast data between pre and post FIT periods. The financial system is not fully developed which is a hindrance to the transmission mechanism. The cost of lending, issues in bond market, and pandemic situation related problems requires an appropriate transmission mechanism in the monetary policy of our country.
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Montes, Gabriel Caldas, and Gabriel Gonçalves do Vale Monteiro. "Monetary policy, prudential regulation and investment." Journal of Economic Studies 41, no. 6 (November 10, 2014): 881–906. http://dx.doi.org/10.1108/jes-12-2012-0173.
Повний текст джерелаАнотація:
Purpose – The purpose of this paper is to analyze the influence of prudential regulation and monetary policies on the supply of credit as well as the influence of such policies on the aggregate investment through the credit channel in Brazil. Design/methodology/approach – The empirical analysis is based on estimates through ordinary least squares (OLS), generalized method of moments (GMM), system of equations through GMM (system-GMM), and impulse response functions through vector autoregressive (VAR). Findings – The results suggest that monetary policies and prudential regulation affect aggregate investment through the bank lending channel. With regards to elasticities, the findings indicate that the credit is very sensitive to variations in economic activity and, in turn, prudential regulation presents a stronger influence on credit than the basic interest rate and the reserve requirement rate. Moreover, the estimates suggest that aggregate investment is more sensitive to entrepreneurs’ expectations and credit supply. Practical implications – Aiming to reduce systemic risk in the economy, capital requirements may be increased in order to induce banks to a lower risk exposure by reducing the supply of loans. However, while this instrument strengthens the banking system, it can also lead the banking system to become less sensitive to monetary policy shocks, and also discourage aggregate demand through the influence that the credit exerts on investments. As a consequence, prudential regulation is an important tool because it acts on the balance between economic growth and low risk exposure of banks. Originality/value – The paper provides useful insights to academicians, economists and policymakers who are interested in understanding the effects of monetary policies and prudential regulation on aggregate investment through the credit channel in an emerging economy under inflation targeting. Moreover, the paper develops a theoretical model in order to show the influence of different monetary policies, as well as the influence of prudential regulation on the supply of credit.
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Silva, Igor Ézio Maciel, Jocildo Fernandes Bezerra, and Ricardo Chaves Lima. "Determinantes de longo prazo do crédito no Brasil: Liquidez versus Capital Bancário." Brazilian Review of Finance 14, no. 3 (July 26, 2016): 375. http://dx.doi.org/10.12660/rbfin.v14n3.2016.59195.
Повний текст джерелаАнотація:
This study addresses the issue of the bank-lending channel in Brazil, with monthly aggregated data for the period 2004:12 to 2013:11. Using Vector Error Correction Model (VECM), the paper identifies the functions of long-term demand and supply of bank loans through exclusion restrictions and exogeneity, applied to the estimated cointegration relations. The research extends previous results (Mello and Pisu, 2010) for Brazil, showing that the supply of loans depends on the banking spread and that, for the analyzed period, the stock of bank credit contains information about the future path of inflation. In addition , it performs robustness test in relation to the results obtained in Bezerra et al. (2016 ) using the bank capital measure initially used in Mello and Pisu (2010 ) and notes that the bank capital and systemic liquidity have strong statistical significance.
15
Turguttopbas, Neslihan. "Perspectives on Monetary Policy and Cost of Capital: Evidence from Turkey." Journal of Central Banking Theory and Practice 6, no. 2 (May 1, 2017): 45–64. http://dx.doi.org/10.1515/jcbtp-2017-0012.
Повний текст джерелаАнотація:
Abstract The target of monetary policy is generally set as to create an environment of manageable employment and affordable long-term interest rates. However, priorities of central banks may differ depending on economic and financial circumstances of individual countries. Modern approaches to monetary policy transmission can be grouped under two headings, Money View and Credit View. The money view concentrates on interest rates to explain the effects of monetary policy on aggregate spending by creating an interest rate channel. The credit channel transmission approach focuses on the supply of credits by banks following a monetary policy shift in interest rates. In 2010, the Central Bank of Turkey (CBT) developed an interest rate corridor shaped by one-week and overnight repo lending to the financial banks to absorb excessive volatility caused by short-term capital inflows. Under this framework, the CBT implements its monetary policy in two ways; firstly it can alter the interest rates of weekly repo as well as O/N lending rate. Secondly, it can configure the funding structure it provides to the financial intermediaries. In such a framework, the interest rate transmission mechanism has been operated by two benchmark interest rates, one of which is the weighted average of the cost of funds provided by the CBT and the other is the interest rate in Borsa Istanbul (BIST) money market transactions at an overnight maturity. There is a strong co-movement between the interest rates and they are affected by the movements in the CBT lending rate in both directions. Interest rates applied to deposits and loans by banks are affected by the policy rate (CBT Average Funding Rate) and the market rate (BIST O/N Repo Rate).
16
Xie, Xiaofeng, Yang Yang, Kai Xu, and Zongfang Zhou. "Associated Credit Risk Contagion and Spillover Effect Based on Supply Chain Buy-Back Guarantee Contract." Mathematical Problems in Engineering 2019 (June 10, 2019): 1–17. http://dx.doi.org/10.1155/2019/4292589.
Повний текст джерелаАнотація:
We take the supply chain with a supplier and a retailer as the research objects and study the contagion and spillover effect of the associated credit risk in the supply chain under the scenario of the buy-back guarantee contract. The associated credit risk in the supply chain refers to the phenomenon that the credit default of the retailer causes the credit default of the supplier or increases the probability of default. The buy-back guarantee in the supply chain refers to the assumption by the retailer of the supplier’s buy-back contract as a financing mechanism. At present, the buy-back guarantee has become a new channel of contagion for the associated credit risk in the supply chain. Under the dual Stackelberg game analysis framework of the lending institutions, suppliers, and retailers, this paper clarifies the contagion mechanism of associated credit risk in the supply chain under the condition of the buy-back guarantee and constructs mathematical models to explore the contagion and spillover effect of the associated credit risk in the supply chain. The results show that, under the condition of the buy-back guarantee, the contagion effect of the associated credit risk in the supply chain has trigger thresholds, and the probability of triggering the contagion effect is related to the retailer’s order quantity, supplier’s wholesale price, and product’s market price. The contagion effect is positively affected by the buy-back rate, production costs, and loan interest rates and negatively affected by the product’s market price. In contrast, the degree of buy-back guarantee aggravates the negative spillover effect of the associated credit risk and raises the risk level of lending institutions.
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Bottero, Margherita, Simone Lenzu, and Filippo Mezzanotti. "Sovereign debt exposure and the bank lending channel: Impact on credit supply and the real economy." Journal of International Economics 126 (September 2020): 103328. http://dx.doi.org/10.1016/j.jinteco.2020.103328.
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Wang, Chien-An, and Chin-Oh Chang. "International Real Estate Review." International Real Estate Review 11, no. 1 (June 30, 2008): 38–64. http://dx.doi.org/10.53383/100089.
Повний текст джерелаАнотація:
Since the 1997 Asian financial crisis, the monetary authority of Taiwan decreased the interest rate nine times and had every intention to maintain a loose monetary policy. However, the lending amounts to the construction industry decreased much more sharply in spite of an increased monetary supply. Hence, the loose monetary policy has not reduced the financial constraints of the construction firms in Taiwan. In this paper, we investigate that the credit channel of monetary policy how to works at the Taiwan’s construction industry. We explain the reasons for financial constraints in the construction industry in Taiwan. Construction firms whose information is considerably opaque, are likely to be viewed as “lemons,?which accounts for the credit crunch policy of banking lending to these construction firms. Two strands of evidence support this view. First, the borrowing terms for the construction industry have been more restrictive than those for other industries firms during the same period of financial difficulty. Second, we determine that such financial constraints vary systematically within different industry groups. The results substantiate that construction firms retain more internal funds for future investment, and the sign of the liquidity coefficient is significant in their investment function. The evidence shows construction firms bear most of the reductions in bank loan supply, and that they are more bank-dependent.
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García-Posada, Miguel, and Marcos Marchetti. "The bank lending channel of unconventional monetary policy: The impact of the VLTROs on credit supply in Spain." Economic Modelling 58 (November 2016): 427–41. http://dx.doi.org/10.1016/j.econmod.2016.05.002.
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Obinne, Ugwuanyi Georgina, Efanga Udeme Okon, and Okanya Ogochukwu Chinelo. "Monetary Policy Transmission Paths and Money Supply in Sub-Saharan Africa: Evidence from Nigeria and Ghana." International Journal of Business Management and Finance Research 4, no. 2 (December 29, 2021): 55–74. http://dx.doi.org/10.53935/26415313.v4i2.187.
Повний текст джерелаАнотація:
The main objective of this study gears towards evaluating monetary policy transmission paths and money supply in Sub- Saharan Africa: evidence from Nigeria and Ghana from1981- 2018. The Central Bank of Nigeria, Bank of Ghana and World Bank, World Development Indicator of 2018 furnished us with the data used for analysis. This study explored three different monetary policy transmission channels: interest rate, credit and asset pricing transmission channels and these variables were regressed on money supply in both countries using Auto Regressive Distributed Lag (ARDL) Model estimation technique. The study also employed other diagnostic tests such as: Normality, Auto correlation test, Heteroskedasticity test and Breusch-Godfrey Serial Correlation LM test and they confirmed the validity and reliability of the model employed. The inferential results revealed that credit to private sector transmission channels in both Nigeria and Ghana had positive and significant impact on money supply but lending rate transmission paths in the two countries impacted insignificantly on money supply. This study concludes that monetary policy transmission channels in Nigeria were more robust in impacting on money supply than in Ghana. As such, the study recommends that monetary authorities of both countries need to formulate stringent monetary policies that will reduce the circulation of money outside the financial systems and there should be a synergy between monetary and fiscal policies in both economies so as to aid the instruments of macroeconomic policies achieve their objectives.
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Morais, Bernardo, Jose-Luis Peydro, and Claudia Ruiz. "The International Bank Lending Channel of Monetary Policy Rates and QE: Credit Supply, Reach-for-Yield, and Real Effects." International Finance Discussion Paper 2015, no. 1137 (July 2015): 1–47. http://dx.doi.org/10.17016/ifdp.2015.1137.
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MORAIS, BERNARDO, JOSÉ‐LUIS PEYDRÓ, JESSICA ROLDÁN‐PEÑA, and CLAUDIA RUIZ‐ORTEGA. "The International Bank Lending Channel of Monetary Policy Rates and QE: Credit Supply, Reach‐for‐Yield, and Real Effects." Journal of Finance 74, no. 1 (January 25, 2019): 55–90. http://dx.doi.org/10.1111/jofi.12735.
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Strobel, Johannes, Kevin D. Salyer, and Gabriel S. Lee. "Uncertainty, agency costs and investment behavior in the Euro area and in the USA." Journal of Asian Business and Economic Studies 25, no. 1 (June 11, 2018): 122–43. http://dx.doi.org/10.1108/jabes-04-2018-0007.
Повний текст джерелаАнотація:
Purpose The purpose of this paper is to analyze the credit channel effects on investment behavior for the US and the Euro area. Design/methodology/approach This paper uses the dynamic stochastic general equilibrium model and calibrates a version of the Carlstrom and Fuerst’s (1997) agency cost model of business cycles with time-varying uncertainty in the technology shocks that affect capital production. To highlight the differences between the US and European financial sectors, the paper focuses on two key components of the lending channel: the risk premium associated with bank loans and the bankruptcy rates. Findings This paper shows that the effects of minor differences in the credit market translate into large, persistent and asymmetric fluctuations in real and financial variables and depend on the type of shocks. The results imply that the Euro areas supply elasticities for capital are less elastic than that of the USA following a technology shock. Finally, the authors find that the adverse impact of uncertainty shocks is heterogeneous across countries and amplified by the steady-state bankruptcy rate and risk premium. Originality/value This paper quantifies the effects of uncertainty shocks when there is a credit channel due to asymmetric information between lenders and borrowers for the Euro area countries, and then compares the results to that of the USA. This paper shows that financial accelerator mechanism could potentially play a significant role in business cycles in the Euro area. This result directly lends one to conclude the following: the credit channel that affects the financial sector does indeed matter for macroeconomic behavior, and that policy makers should be attentive in smoothing out uncertainties if the economic policies are to lower the business and financial cycle volatilities.
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GOGICHAEV, Ch A. "UNCONVENTIONAL MONETARY POLICY AND A MODERN VIEW ON CASH ISSUES." EKONOMIKA I UPRAVLENIE: PROBLEMY, RESHENIYA 5, no. 10 (2020): 15–21. http://dx.doi.org/10.36871/ek.up.p.r.2020.10.05.003.
Повний текст джерелаАнотація:
In the aftermath of the 2008 global financial crisis, central banks in developed countries began to resort to unconventional monetary policy measures as interest rates approached zero. Such actions have led to the expansion of the balance sheets of central banks due to the abnormal growth of excess reserves. The article discusses the misconception that such an increase in the monetary base can directly affect the volume of money supply through the action of the money multiplier mechanism and the narrow credit channel of the transmission mechanism. The opinion disputed that non-traditional measures of monetary policy, pro-vided they are adequate, lead to an increase in inflationary risks in the economy. The work focuses on the lack of a close relationship between reserves, the level of lending and the money supply, and attempts made to assess the boundaries of the monetary policy methods under consideration.
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Bhusare, Shital Prakash, and Ruby Chanda. "Micro-Finance & Micro-Credit for Sustainable Development." IRA-International Journal of Management & Social Sciences (ISSN 2455-2267) 6, no. 3 (March 27, 2017): 365. http://dx.doi.org/10.21013/jmss.v6.n3.p4.
Повний текст джерелаАнотація:
<div><p><em>Poverty is one of the biggest challenges to the development of a developing country like India where a major population is living in rural and semi-urban areas. Institutional credit is considered as a powerful tool for alleviating poverty. Microfinance is the supply of loans, savings, and other basic financial services to the poor. As the financial services of microfinance usually involve small amounts of money – small loans, small savings etc. the term "Microfinance" helps to differentiate these services from those of commercial banks. Microfinance in India has been through two channels of credit delivery to poor and low-income households–Self Help Group Bank Linkage Programme (SBLP) and the Microfinance institutions lending through groups as well as directly to individuals. This study was with the overall objective of conducting a detailed analysis of interest rates, costs and margins of microfinance institutions. </em></p><p><em>This study highlights the reach and the impact on the customers and the channels used by these firms for the effectiveness of Micro Finance and Microcredit schemes. For the purpose of analysis the statistical tools like Mean, Standard deviation, coefficient of co-relation and regression have been used. </em></p><p><em>Microfinance is playing a very important role in decrease poverty. Microfinance to the rural SHGs is a way to raise the income level and improve the living standards of the rural peoples. Thus, it can be concluded that the self-help groups contribute substantially in pushing the conditions of the rural population up.</em></p></div>
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Nilsen, Jeffrey H. "Trade Credit and the Bank Lending Channel." Journal of Money, Credit, and Banking 34, no. 1 (2002): 226–53. http://dx.doi.org/10.1353/mcb.2002.0032.
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Ezam, Quratulain. "Bank Lending (Credit) Channel of Monetary Transmission Mechanism." Journal of Business and Social Review in Emerging Economies 4, no. 1 (June 30, 2018): 93–100. http://dx.doi.org/10.26710/jbsee.v4i1.371.
Повний текст джерелаАнотація:
The significance of channel of bank lending for the process of transmission of monetary policy is examined employing the model of ARDL (Auto-regressive-distributed lag). This recently established bound test is used in order to determine the description of this model. The data that has been used for this research is based on secondary data of 7 years. The results appear constant with the hypothesis that providing by banks with comparatively frail capital responds great, the modification in the stance of monetary policy than providing by improved capitalized banks.
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Gupta, Arun, Horacio Sapriza, and Vladimir Yankov. "The Collateral Channel and Bank Credit." Finance and Economics Discussion Series 2022, no. 024 (May 10, 2022): 1–59. http://dx.doi.org/10.17016/feds.2022.024.
Повний текст джерелаАнотація:
Our paper studies the role of the collateral channel for bank credit using confidential bank-firm-loan data. We estimate that for a 1 percent increase in collateral values, firms pledging real estate collateral experience a 12 basis point higher growth in bank lending with higher sensitivities for more credit constrained firms. Higher real estate values boost firm capital expenditures and lead to lower unemployment and higher employment growth and business creation. Our estimates imply that as much as 37 percent of employment growth over the period from 2013 to 2019 can be attributed to the relaxation of borrowing constraints.
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Ademokoya, Alade Ayodeji, Mubaraq Sanni, Lukman Adebayo Oke, and Segun Abogun. "Impact of Monetary Policy on Bank Credit in Nigeria." Journal of Accounting Research, Organization and Economics 3, no. 3 (December 28, 2020): 196–205. http://dx.doi.org/10.24815/jaroe.v3i3.17879.
Повний текст джерелаАнотація:
Objective – The aim of this study is to examine the impact of monetary policy on credit creation ability of banks in Nigeria. Specifically, it investigates the impact of monetary policy rate, money supply, liquidity ratio, and change in maximum lending rate on bank credit in Nigeria. Design/methodology – A monthly time series data from 2007-2019 were sourced from the Central Bank’s of Nigeria statistical bulletin. The sourced data was subjected to multiple regression analysis using the fully modified ordinary least square regression to estimate the parameters of the model. Results – Findings reveal that money supply significantly and positively influence bank credit in Nigeria; while liquidity ratio significantly but negatively influence bank credit in Nigeria. On the contrary, monetary policy rate and maximum lending rate were found not to significantly affect bank credit in the case of Nigeria.Policy Recommendation - Study therefore, recommend that monetary authorities especially, the Central Bank of Nigeria should pay more attention to lowering the liquidity ratio while increasing money supply in order to engender banks credit creation ability and further stimulate the Nigerian economy for growth.
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MALLETT, JACKY. "WHAT ARE THE LIMITS ON COMMERCIAL BANK LENDING?" Advances in Complex Systems 15, supp02 (September 2012): 1250075. http://dx.doi.org/10.1142/s0219525912500750.
Повний текст джерелаАнотація:
Analysis of the 2007–2008 credit crisis has concentrated on issues of relaxed lending standards, and the perception of irrational behavior by speculative investors in real estate and other assets. Asset backed securities have been extensively criticized for creating a moral hazard in loan issuance and an associated increase in default risk, by removing the immediate lender's incentive to ensure that the underlying loans could be repaid. However significant monetary issues can accompany any form of increased commercial bank lending, and these appear to have been overlooked by this analysis. In this paper we propose a general explanation for credit crises based on an examination of the mechanics of the banking system, and in particular its internal controls on the supply of credit. We suggest that the current credit crisis is the result of multiple failures in the Basel regulatory framework, including the removal of central bank reserve requirements from some classes of deposit accounts within the banking system, allowing financial instruments representing debt to be used as regulatory capital, and in particular the introduction of securitized lending which effectively removed a previously implicit control over the total quantity of lending originating from the banking system. We further argue that the interaction of these problems has led to a destabilizing imbalance between total money and loan supply growth, in that total lending sourced from the commercial bank sector increased at a faster rate than accompanying growth in the money supply. This not only created a multi-decade macro-economic debt spiral, but by increasing the ratio of debt to money within the monetary system acted to increase the risk of loan defaults, and consequentially reduce the overall stability of the banking system.
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Valencia, Fabián. "BANKS' PRECAUTIONARY CAPITAL AND CREDIT CRUNCHES." Macroeconomic Dynamics 18, no. 8 (June 12, 2013): 1726–50. http://dx.doi.org/10.1017/s136510051300014x.
Повний текст джерелаАнотація:
This paper develops a bank model to study supply-driven contractions in credit or credit crunches. In the model, the bank is affected by financial frictions in raising external funds. These frictions imply that the bank repairs its balance sheet only gradually following a negative shock that weakens the bank's capital position. Consequently, there is persistency in the response of bank lending even when the original shock (productivity or interest rate) is i.i.d. The nonlinear nature of these financial frictions also generates (i) a precautionary motive even with risk-neutral shareholders: the bank increases its desired level of capital if risk increases; (ii) an asymmetric response of lending: negative disturbances can have a bigger impact than positive ones; and (iii) volatility clustering in risk spreads and the bank's share price.
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Sutomo, Sutomo, and Johadi Johadi. "ANALISIS RIGIDITAS LENDING RATE PERBANKAN DI INDONESIA PERIODE JANUARI2001 - JUNI2004." Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan 5, no. 2 (May 2, 2017): 193. http://dx.doi.org/10.23917/jep.v5i2.4042.
Повний текст джерелаАнотація:
The research aim's to know the influence of interest rate ofSBI, exchange rate, total bank lending, supply of funds and commercial bank amount to rigidly bank lending rate in Indonesian period of January 2001 until June 2004. The research use secondary data by character of time series. The research methodology used a partial adjustment model that rigidly bank lending rate are influence by all independent variable such interest rate of SBI, exchange rate, and total bank lending, supply of fund and commercial bank amount in banking sector. The empirical results that rigidly bank lending rate are influenced by all independent variable are collectively such interest rate of SBI, exchange rate, and total bank lending, supply of fund and commercial bank amount in banking sector. But as partial, rigidly bank-lending rate are influenced by an interest rate of SBI, exchange rate, total bank lending and supply of funds and commercial bank amount, which don't have an effect to rigidly bank lending rate.The result that is suitable with the theory, where monetary instrument (interest rate of SBI) can be used to influence bank-lending rate as process transmission mechanism monetary policy by price channel approach. Adjustment coefficient is equal to 0,5484 which meaning 54,84 % represents the difference between bank lending rate actual with bank lending rate that desired which fulfilled to be reached in one period, where speed of adjustment bank lending rate in response change of independent variable equal to 5 months 27 day, with mean lag independent variable equal to 1,1812867 months.
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Dumičić, Mirna, and Igor Ljubaj. "Delayed Credit Recovery in Croatia: Supply or Demand Driven?" Journal of Central Banking Theory and Practice 7, no. 1 (January 1, 2018): 121–44. http://dx.doi.org/10.2478/jcbtp-2018-0006.
Повний текст джерелаАнотація:
AbstractIn order to enhance the understanding of credit cycle dynamics in Croatia, we explore the evolution of credit demand and credit supply of corporates and households in Croatia and identify their determinants based on the switching regression framework. These results are crosschecked by the insights from the bank lending survey. The conducted analysis shows there are both supply and demand-side factors that limit the possibility of intensifying household and corporate credit activity. However, a more pronounced drag seems to be coming from subdued demand, which is greatly influenced by the unfavourable domestic macroeconomic environment and, particularly, GDP developments. This suggests that it is not unusual that credit recovery is still missing but also confirms that the scope for monetary policy to stimulate lending is limited.
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Corredor Velandia, César Augusto. "Credit channel in developing countries: the case of Colombia." Revista de Economía del Caribe, no. 03 (June 28, 2022): 1–38. http://dx.doi.org/10.14482/ecoca.03.425.333.
Повний текст джерелаАнотація:
This paper uses a panel data set containing monthly information from the balance sheets of 20 banks between 1995 and 2003. It follows an estimation procedure proposed by Arellano and Bond which applies autocorrelation into panel data using a Generalized Method of Moments (GMM) estimator. The model includes particular characteristics to determine the existence of a bank lending channel including: size, liquidity, capitalization and foreign capital. The bank lending channel literature argues that differences in the characteristics and initial position of banks are reflected in their ability to offset the effects of a tightening monetary policy. It has been proved that in Colombia there is a negative response of loans to changes in the interest rate, but bigger, liquid or capitalized banks are better able to maintain the same level of loans in the face of a tightening monetary policy.
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Akinsola, Foluso Abioye, and Sylvanus Ikhide. "Is commercial bank lending in South Africa procyclical?" Journal of Financial Regulation and Compliance 26, no. 2 (May 14, 2018): 203–26. http://dx.doi.org/10.1108/jfrc-09-2016-0073.
Повний текст джерелаАнотація:
PurposeThis paper aims to examine the relationship between commercial bank lending and business cycle in South Africa. This paper attempts to know whether commercial bank lending in South Africa is procyclical.Design/methodology/approachThe model assumed that the lending behaviour is related to the business cycle. In this study, vector error correction model (VECM) is used to capture the relationship between bank lending and business cycle to accurately elicit the macroeconomic long-run relationship between business cycle and bank lending, as some banks might slow down bank lending due to some idiosyncratic factors that are not related to the downturn in the economy. This paper uses data from South African Reserve Bank for the period of 1990-2015 using VECM to understand the extent to which business cycle fluctuation can affect credit crunch in the financial system. The Johansen cointegration approach is used to ascertain whether there is indeed a long-run co-movement between credit growth and business cycle.FindingsResults from the VECM show that there are significant linkages among the variables, especially between credit to gross domestic product (GDP) and business cycle. The influence of business cycle is seen vividly after a period of four to five years, where business cycle explains 20 per cent of the variation in the credit to GDP. South African banks tend to change their lending behaviour during upturns and downturns. This result further confirms the assertion in theory that credit follows business cycle and can amplify credit crunch. The result shows that in the long run, fluctuations in the business cycle can influence the credit growth in South Africa.Research limitations/implicationsThe impulse analysis result shows that the impact of business cycle shock is very persistent and lasting. This also demonstrates that the shocks to the business cycle result have a persistent and long-lasting impact on credit. This study finds that commercial bank lending in South Africa is procyclical. It is suggested that the South African economy needs forward-looking policies that will mitigate the flow of credit to the real sector and at the same time ensure financial stability.Originality/valueMost research papers rarely distinguish between the demand side and supply side of credit procyclicality. This report is presented to develop an econometric model that will examine demand side procyclicality. This study adopts more realistic and novel methods that will help in explaining the relationship between bank lending and business cycle in South Africa, especially after the global financial crisis. This report is presented with a concise and detailed analysis and interpretation.
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Hlushchenko, Svitlana, Sergiy Ivakhnenkov, and Sofiia Demkiv. "BANK LENDING IN UKRAINE AND SIMULATION OF CREDIT ACTIVITY BY METHODS OF SYSTEM DYNAMICS." Ekonomìka ì prognozuvannâ 2021, no. 2 (June 29, 2021): 101–27. http://dx.doi.org/10.15407/eip2021.02.101.
Повний текст джерелаАнотація:
The article identifies trends in bank lending to companies and households in Ukraine and considers modeling and integrated mapping of demand and supply of bank loans using the methods of system dynamics. The article shows that by 2020 the main trends in the Ukrainian banking sector are: a) increased dynamics of return on capital (29.7%) and reduced dynamics of interest rates on deposits (6.6%) and loans (14.8%); b) growth of the dynamics of bank loans in general, including the following characteristics: the largest share of the bank loan portfolio is accounted for by loans to economic entities, while loans to households account for 21.9%; loans to households are growing faster compared to the growth rate of loans to businesses; in the sectoral context, the largest share in lending is accounted for by the trade sector; short-term consumer loans predominate in household lending (82%); half of the loan portfolio of commercial banks consists of short-term loans; the share of non-performing loans in the total volume of issued loans remains high (48.75%); c) the deposit portfolio is dominated by household deposits, but in the dynamics there is a tendency to decrease in their share. Based on the methods of system dynamics, the authors present a model that allows to trace the relationship between commercial banks and legal entities and individuals, as well as to forecast the amounts of bank loans in accordance with the demand for loans from businesses and households (weighted by the maximum value credit load) and supply of credit resources by commercial banks. From a practical point of view, characterization of trends in banking, modeling the interaction of major participants in bank lending and determining the volume of bank loans using methods of system dynamics will help identify the main factors influencing the supply and demand of bank credit resources at the current stage of development of Ukraine and predict future dynamics of lending.
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Charnvitayapong, Kovit. "Thrift and Credit Cooperative Lending Channel under Prolonged Low-Interest Rates: The Case of Thailand." GATR Journal of Business and Economics Review (JBER) Vol. 5 (2) April-June 2020 5, no. 2 (September 30, 2020): 59–71. http://dx.doi.org/10.35609/jber.2020.5.2(2).
Повний текст джерелаАнотація:
Objective – Considerable research indicates that during times of prolonged low interest rates, commercial bank lending channels are less effective in conveying the impact of expansionary monetary policies. What is the impact of easy money policy through lending channels of non-banking financial institutions (NBFIs) such as thrift and credit cooperatives (TCCs) and why should this result occur? The objective of this study is to examine the effectiveness of monetary policy through TCC lending channels compared to bank lending channels from 2008 to 2017. Methodology/Technique – Annual data from 546 TCCs was used in this investigation. A fixed effects model for TCCs and random effect for banks were employed to examine the data. Two models of each institution, one with lagged interaction terms and the other with contemporaneous interaction terms, were tested and compared. The impact of institutional characteristics such as size, deposit, liquidity and equity, and macroeconomic variables such as GDP growth and yield spread, on lending channels were also examined. Finding – As expected, the results show that TCC lending channels respond positively to prolonged low interest rate policies, whilst bank lending channels respond negatively in one model. Thus, if monetary authorities wish to increase the effectiveness of expansionary monetary policy, TCCs should be allowed to develop under careful supervision. Novelty –This study concludes that incremental budgeting caused by regulation must be borne by TCCs. Type of Paper: Empirical. JEL Classification: E44 E51 E52 E58. Keywords: Thrift and Credit Cooperatives (TCCs); Prolonged Low-Interest Rates; Transmission Mechanism; Lending Channels; Fixed Effects. Reference to this paper should be made as follows: Charnvitayapong, K. 2020. Thrift and Credit Cooperative Lending Channel under Prolonged Low Interest Rates: The Case of Thailand, J. Bus. Econ. Review 5(2) 59 – 71 https://doi.org/10.35609/jber.2020.5.2(2)
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Mwemezi, Justus, Abdelhak Senadjki, and Lau Lin Sea. "Augmenting Bank Credit Flow to Agro-Processing SMEs through Financial Technology (FinTech): Evidence from Tanzania." WSEAS TRANSACTIONS ON BUSINESS AND ECONOMICS 19 (November 28, 2022): 1914–28. http://dx.doi.org/10.37394/23207.2022.19.172.
Повний текст джерелаАнотація:
The drivers of bank credit flow of transaction costs, credit risk management, information asymmetry, and institutional lending structure are extensively examined. Previous studies have assessed how SMEs might address their financing issues from a demand side. This study is inclined toward the supply side of financing. We aimed to determine how FinTech can counteract the effects of lending costs, information asymmetry, and credit risk management to influence the flow of bank credit to agro-processing SMEs and other entrepreneurs. A total of 399 questionnaires were collected for statistical analysis using partial least square structural equation modeling (Smart PLS). We demonstrate that FinTech as a moderator reduces the negative effects of information asymmetry and credit risk management to allow agro-processing SMEs to obtain more loans. Policymakers can use the findings of this study to improve banks' financial technology in lending activities for the sustainability of entrepreneurial activities.
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Eickmeier, Sandra, Andreas Worms, and Boris Hofmann. "Macroeconomic Fluctuations and Bank Lending: Evidence for Germany and the Euro Area." German Economic Review 10, no. 2 (May 1, 2009): 193–223. http://dx.doi.org/10.1111/j.1468-0475.2008.00455.x.
Повний текст джерелаАнотація:
Abstract This paper analyzes the dynamic response of loans to the private sector and of economic activity to aggregate supply, demand and monetary policy shocks in Germany and the euro area based on a standard macroeconomic VAR using sign restrictions to identify the structural shocks. The main results of this analysis are that (i) with the exception of the response to the supply shock in Germany, the response of loans to the three macroeconomic shocks is rather weak and in most cases insignificant; (ii) the 2000-05 credit slowdown and weak economic performance in Germany were primarily driven by adverse supply shocks; and (iii) the marked slowdown in credit creation in Germany over this period actually represents a realignment of the outstanding stock of loans with its deterministic level. In order to assess the role of bank lending in the transmission of macroeconomic shocks, we further perform counterfactual simulations and analyze the dynamic responses of German loan subaggregates in order to test the distributional implications of potential credit market frictions. These exercises do not indicate that credit market frictions play an amplifying role in the transmission of macroeconomic fluctuations.
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Huhtilainen, Matias. "The Impact of CRD IV on Bank Lending." European Journal of Government and Economics 8, no. 2 (December 17, 2019): 203–17. http://dx.doi.org/10.17979/ejge.2019.8.2.4656.
Повний текст джерелаАнотація:
This study addresses the post-financial crisis EU banking regulation reform CRD IV. The specific focus is on the relationship between increased capital requirements and the subsequent change in both supply and the price of bank credit. This study employs a twofold data consisting of a panel of Finnish unlisted savings and cooperative banks’ key figures over the period 2002-2018 and a representative survey conducted with personnel of Finnish institutions. In addition to the consistent finding in regards to the effect of bank profitability as well as fairly consistent findings in regards to the effect of bank size and GDP growth, the key finding suggests a slight decrease in loan supply under the CRD IV.
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Shokr, Mohamed Aseel, Zulkefly Abdul Karim, Mansor Jusoh, and Mohd Azlan Shah Shah Zaidi. "The Bank Lending Channel of Monetary Policy? The Panel Evidence from Egypt." Gadjah Mada International Journal of Business 16, no. 3 (December 11, 2014): 255. http://dx.doi.org/10.22146/gamaijb.5659.
Повний текст джерелаАнотація:
This paper examines the relevance of the bank lending channel of monetary policy in Egypt using bank-level data. Previous empirical studies in Egypt that used macro-level data have not supported the relevance of the bank lending channel. However, using a sample of 32 commercial banks for the period from 1998 until 2011 and a dynamic panel GMM technique, the empirical findings revealed the relevance of the bank lending channel of monetary policy in Egypt. Moreover, there is a heterogeneity effect of monetary policy on bank loans according to bank size, in which the small banks are more affected during a monetary contraction than larger banks. This finding signals that the monetary authorities in Egypt should take cognizance of the stability of interest rates in order to stabilize the bank loan supply.
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Ndikumana, Léonce. "Implications of Monetary Policy for Credit and Investment in Sub-Saharan African Countries." Journal of African Development 18, no. 2 (October 1, 2016): 1–18. http://dx.doi.org/10.5325/jafrideve.18.2.0001.
Повний текст джерелаАнотація:
This paper investigates the implications of monetary policy for domestic investment through its effects on bank lending to the private sector and interest rates in sub-Saharan African countries. The study argues that the pursuit of inflation control through contractionary monetary policy carries high costs in terms of reduced investment and ultimately slower economic growth. The econometric evidence based on a sample of 37 sub-Saharan African countries over 1980-2012 shows that contractionary monetary policy affects domestic investment negatively both indirectly through the bank lending or quantity channel as well as directly through the interest rate or cost of capital channel. The results suggest that policies that maintain a low interest rate regime would stimulate bank lending to the private sector, which in turn would boost domestic investment. The results have important policy implications for African countries in their efforts to achieve and sustain high growth rates as a means of reaching their national development goals notably employment creation and poverty reduction.
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XU, TAO, JIANMIN HE, and SHOUWEI LI. "MULTI-CHANNEL CONTAGION IN DYNAMIC INTERBANK MARKET NETWORK." Advances in Complex Systems 19, no. 06n07 (September 2016): 1650011. http://dx.doi.org/10.1142/s0219525916500119.
Повний текст джерелаАнотація:
In this paper, a dynamic interbank market network model based on bank agent behaviors is developed to analyze financial contagion with counter-party and liquidity channels. Afterwards, we analyze the impact of dynamics on the stability of interbank market and find that dynamics of interbank market could enhance the resilience of the network, which suggests contagion might be overestimated in current studies. Moreover, we investigate the mechanism of contagion when counter-party and liquidity channels are both active in the dynamic interbank market network. Specifically, we analyze the effects of bank capitalization, interbank exposures, liquid assets, and bank credit lending preference on the stability of the banking system, respectively. First, we find that liquidity in interbank market and fluctuations of deposits could amplify the negative impact of each other on the resilience of interbank market network. Second, banks with higher capitalization level tend to be more resilient against financial contagion. Third, interbank exposures may have multiple effects on the resilience of interbank market network. Fourth, the resilience of interbank market network is a nonmonotonic function of percentage of liquid assets. Finally, we discover a complex relationship between bank credit lending preference and the resilience of interbank market.
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Svitlana, Hlushchenko, Ivakhnenkov Sergiy, and Demkiv Sofiia. "Bank lending in Ukraine and simulation of credit activity by methods of system dynamics." Economy and forecasting 2021, no. 2 (August 30, 2021): 89–109. http://dx.doi.org/10.15407/econforecast2021.02.089.
Повний текст джерелаАнотація:
The trends of bank crediting of businesses and households in Ukraine are determined and credit interrelations between subjects of economy by means of methods of system dynamics simulated. The article shows that by end 2020 the main trends in the Ukrainian banking sector are: 1) increasing the dynamics of return on capital, consistently high interest rates on loans until 2019 and their declining dynamics in 2020; 2) declining trends in the dynamics of the share of loans in the assets of commercial banks and the indicator of the financial depth of lending to the Ukrainian economy; 3) predominance of the share of loans to businesses in comparison with the share of loans to households in the loan banking portfolio; 4) faster growth rates of bank loans to households compared to the growth rates of lending to businesses; 5) in the sectoral context, the largest share in lending to business units is accounted for by trade and in lending to households – by consumer lending; 6) half of the loan portfolio of commercial banks are short-term loans for up to one year; 7) the share of non-performing loans in the loan portfolio remains high; 8) gradual reduction of non-deposit sources among the liabilities of commercial banks and their transition to almost full financing at the expense of customer deposits; 9) increase in the share of short-term and decrease in the share of long-term deposit financing of commercial banks. Based on the methods of system dynamics, the authors created a model that allows to trace the relationship between commercial banks-businesses-households, as well as to calculate the forecast volumes of bank loans in accordance with the demand for loans from businesses and households (weighted by the maximum value credit load) and supply of credit resources by commercial banks. From a practical point of view, determining the characteristic trends of bank lending, modeling the interaction of its main participants and determining the volume of bank loans using system dynamics helps to identify key factors influencing the supply and demand of bank credit resources at the present stage of Ukraine’s development and predict future lending dynamics.
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Hwang, Soo-Young, Jung-Jin Lee, and Yong-Deok Kim. "The Impact of Relationship Lending on Bank Loan Process for Korean SMEs." Korean Journal of Financial Studies 50, no. 5 (October 31, 2021): 521–56. http://dx.doi.org/10.26845/kjfs.2021.10.50.5.521.
Повний текст джерелаАнотація:
We investigate the effects of the bank-firm relationships on the decision making process regarding loan application, loan approval, and loan interest rate. To do this, we use data from 2016, and 2017 Surveys of Korea Small Business Finance conducted by Industrial Bank of Korea. We found that a more intense bank-firm relationship increases the likelihood of loan approval. Also, SMEs borrowing from lower number of banks and with more concentrated loans in main bank seem to obtain credit from main bank at lower interest rate than others. But applying for a loan is not related to the bank-firm relationship. This findings suggest that a close bank-firm relationship can reduce information asymmetry problem and alleviate SMEs’ credit constraint. Also bank-firm relationships seem to be important in determining the loan interest rate. As a relsult, our findings support that relationship lending has a beneficial effect on the supply side of the Korean SME credit market.
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Crawford, Gregory S., Nicola Pavanini, and Fabiano Schivardi. "Asymmetric Information and Imperfect Competition in Lending Markets." American Economic Review 108, no. 7 (July 1, 2018): 1659–701. http://dx.doi.org/10.1257/aer.20150487.
Повний текст джерелаАнотація:
We study the effects of asymmetric information and imperfect competition in the market for small business lines of credit. We estimate a structural model of credit demand, loan use, pricing, and firm default using matched firm-bank data from Italy. We find evidence of adverse selection in the form of a positive correlation between the unobserved determinants of demand for credit and default. Our counterfactual experiments show that while increases in adverse selection increase prices and defaults on average, reducing credit supply, banks’ market power can mitigate these negative effects. (JEL D22, D82, G21, G32, L13, L25)
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Greenstone, Michael, Alexandre Mas, and Hoai-Luu Nguyen. "Do Credit Market Shocks Affect the Real Economy? Quasi-experimental Evidence from the Great Recession and “Normal” Economic Times." American Economic Journal: Economic Policy 12, no. 1 (February 1, 2020): 200–225. http://dx.doi.org/10.1257/pol.20160005.
Повний текст джерелаАнотація:
Using comprehensive data on bank lending and establishment-level outcomes from 1997–2010, this paper finds that small business lending is an unimportant determinant of small business and overall economic activity. A shift-share style research design is implemented to predict county-level lending shocks using variation in preexisting bank market shares and bank supply shifts. Counties with negative predicted lending shocks experienced declines in small business loan originations, indicating that it is costly to switch lenders. However, small business loan originations have an economically insignificant and generally statistically insignificant impact on both small firm and overall employment during the Great Recession and normal times. (JEL E32, E44, E52, G21, G32, L25)
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Agung, Juda. "FINANCIAL DEREGULATION AND THE BANK LENDING CHANNEL IN DEVELOPING COUNTRIES: THE CASE OF INDONESIA." Buletin Ekonomi Moneter dan Perbankan 3, no. 1 (October 11, 2003): 121–45. http://dx.doi.org/10.21098/bemp.v3i1.290.
Повний текст джерелаАнотація:
The dominant role of commercial banks as a source of finance and the considerable asymmetry of information in financial markets in developing countries have raised an argument that the bank lending channel of monetary transmission mechanism would be very important in such countries. This study addresses the issue by investigating empirically whether there are differential effects of monetary policy on banks’ balance sheets, and its implications to the existence of the bank lending channel of monetary policy in Indonesia, especially since the early 1980s when the government adopted a policy of financial deveculation. We find significant differences of balance sheet behavior across bank clashes in response to a change in monetary policy, consistent with the predictions of the bank lending view. We also found that because of access to foreign funds and the existence of bank loan commitment, the monetary policy was unable to constrain loan supply by the large (state) banks, indicating that the bank lending channel operates through smaller (non-state) banks.
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Chakanyuka, Dr Goodman. "THE DETERMINANTS OF BANK CREDIT GROWTH AND CREDIT AGGREGATE BEHAVIOR DURING ALTERNATE BUSINESS CYCLES IN SOUTH AFRICA." Journal of Accounting 1, no. 1 (December 8, 2016): 18–31. http://dx.doi.org/10.47941/jacc.30.
Повний текст джерелаАнотація:
Purpose: The purpose of this study was to Analyze of the Relationship between Business Cycles and Bank Credit Extension: Evidence from South Africa. The study sought establish the determinants of bank credit growth in South Africa and how the different credit aggregates behave during alternate business cyclesMethodology: This study adopted qualitative and quantitative research. The qualitative research involves structured interviews with influential or well informed people on the subject matter. The study is used to understand the key determinants of bank credit in South Africa and to appreciate how each of the credit aggregates behaves during alternate business cycles. The qualitative results are used to formulate questions of the structured survey questionnaire. The ANOVA and Pearman’s product correlation analysis techniques are used to assess relationship between variables.Results: Results revealed that, key determinants of commercial bank credit in South Africa as economic growth, collateral value, bank competition, money supply, deposit liabilities, capital requirements, bank lending rates and inflation. The quantitative results show that there is direct and positive relationship between bank lending behaviour and credit aggregates namely economic growth, collateral value, bank competition and money supply.Unique contribution to theory, practice and policy: It proposes practical policy prescriptions to address challenges currently facing South Africa. The other major contribution of this study is that it shall open new avenues for further research on determinants of bank credit growth in South Africa and how the different credit aggregates behave during alternate business cycles.
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Fang, Zhongbin, Hongru Fan, Haoxin Huang, Yuhan Zhuang, Jia Ji, Pengfei Su, Ziyang Cheng, and Ke Tang. "Bank Credit Strategy Model Based on AHP-Fuzzy Comprehensive Evaluation." Business and Management Studies 7, no. 1 (January 3, 2021): 22. http://dx.doi.org/10.11114/bms.v7i1.5081.
Повний текст джерелаАнотація:
Credit risk control and credit strategy formulation of medium and micro enterprises have always been important strategic issues faced by commercial banks. Banks usually make corporate loan policies based on the credit degree, the information of trading bills and the relationship of supply-demand chain of the enterprise. In this paper, we established the AHP-Fuzzy comprehensive evaluation model for quantifying enterprise credit risk. Based on the relevant data of 123 enterprises with credit records, the credit strategy is formulated according to the three indicators of enterprise strength, enterprise reputation and stability of supply-demand relationship. This paper also combines the credit reputation, credit risk and supply and demand stability rating in order to establish the bank credit strategic planning model to decide whether to lend or not and the lending order. The conclusion shows that, under the condition of constant total loan amount, the enterprises with the highest credit rating should be given priority. Then, combined with the change of customer turnover rate with interest rate, we take the bank's maximize expected income as objective to calculate the optimal loan interest rate of different customer groups.