Tysyachna Yunna S.
Full Text Available The goal of the article lies in the study of basic methodical approaches to assessment of the quality of the bank loan portfolio, identification of specific features of their practical application and justification of selection of the most appropriate for the modern economic conditions. The article considers three main groups of methods of assessment of the quality of the bank loan portfolio: expert evaluation methods and statistical and analytical methods. It goes without saying that in order to obtain an objective assessment of quality of the bank loan portfolio it is necessary to apply a complex approach, however, due to some advantages and shortcomings of the studied methods, the author marks expediency of building an integral indicator, taxonomic in particular, in order to obtain a complex, objective and efficient assessment of the bank loan portfolio. Prospects of further studies in this direction are assessment of the quality of the loan portfolio of the first group banks by the size of their assets through building integral taxonomic indicators and identification, on this basis, of factors that influence the quality of the loan portfolio with the aim of improvement of the mechanism of management of the bank lending activity.
Grosen, Anders; Jessen, Pernille; Kokholm, Thomas
We examine a specific portfolio credit derivative, an Asset Protection Scheme (APS), and its applicability as a discretionary regulatory tool to reduce asymmetric information and help restore the capital base of troubled banks. The APS can be a fair-valued contract with an appropriate structure...... on an agricultural loan portfolio. We compute the economic capital for this loan portfolio with and without an APS. Moreover, we illustrate how model risk in the form of parameter uncertainty is reduced when an APS is attached to the loan portfolio....... of incentives. We apply two alternative multivariate structural default risk models: the classical Gaussian Merton model and a model based on Normal Inverse Gaussian processes. Using a data set on annual farm level data from 1996 to 2009, we use the Danish agricultural sector as a case study and price an APS...
Bruno Vinícius Ramos Fernandes
Full Text Available Given the current macroeconomic environment experienced in Brazil, where inflation has stabilized and the basic interest rate of the economy is in one of their historical lows, demand for mortgages is increasing. In this context, the mortgage is presented with great emphasis to meet the demand for purchasing housing in addition to being a catalyst for the reduction of the high housing deficit. From a descriptive and empirical-analytic was analyzed the mortgage loan portfolio of the largest banks of the country between the years 2001 and 2010 through Quarterly Financial Information (IFT available on the Central Bank website. It was settled a comparative relationship between the data in order to check the development of mortgage portfolios over the years and the factors that influenced this evolution, and evaluate the timeliness and quality of those loans. For the evolution of the portfolio there was an economic context in which Brazil was included in the period, and observed that for most of these operations are long term the banks are more exposed to market risk. With regard to credit risk parse that, over the years, Brazilian banks are presenting a mortgage loan portfolio with lower risk, and it is found that institutions with real estate credits with higher levels of portfolio risk are subject to have higher losses on such operations in the possibility of default.
We examine a specific portfolio credit derivative, an Asset Protection Scheme (APS), and its applicability as a tool to restore financial stability and reduce asymmetric information. As opposed to most governmental bailout packages implemented across the world recently, the APS can be a fair valued...... contract with an appropriate structure of incentives. Within the structural credit risk modeling framework, we apply two alternative multivariate default risk models: the classical Gaussian Merton model and a model based on Normal Inverse Gaussian (NIG) processes. Exchanging the normal factors...... loan portfolio. Moreover, we compute the economic capital for this loan portfolio with and without an APS....
Grosen, Anders; Jessen, Pernille; Kokholm, Thomas Sander
We examine a specific portfolio credit derivative, an Asset Protection Scheme (APS), and its applicability as a tool to restore financial stability and reduce asymmetric information. As opposed to most governmental bailout packages implemented across the world recently, the APS can be a fair valued...... contract with an appropriate structure of incentives. Within the structural credit risk modeling framework, we apply two alternative multivariate default risk models; the classical Gaussian Merton model and a model based on Normal Inverse Gaussian (NIG) processes. Exchanging the normal factors...... loan portfolio. Moreover, we compute the economic capital for this loan portfolio with and without an APS....
Full Text Available Credit portfolio management means the totality of financial and economic decisions realization aimed at achieving optimal ratio of performance indicators of loan portfolio. If low-quality loans increase, the reduction of productive assets volume and, respectively, profitability from banking lending. In extreme cases a such situation could lead to bank bankruptcy. At present bank loan portfolio quality assessment is an important component of bank management.
Grosen, Anders; Jessen, Pernille; Kokholm, Thomas
while retaining an appropriate structure of incentives. Within the structural credit risk modeling framework we apply two alternative structural multivariate default risk models, the classical Gaussian Black-Scholes-Merton model and a model based on Normal Inverse Gaussian (NIG) processes, e.g. Barndorf...... as the underlying in the valuation of the corresponding APS in order to demonstrate the applicability of the APS as a regulatory tool. The contribution to the financial literature on credit risk is the empirical analysis of agricultural loans using our unique data set. The contribution to the banking literature......An Asset Protection Scheme (APS) is a portfolio insurance contract; a credit derivative used as a tool to restore financial stability and reestablish economic confidence. Opposed to most governmental bailout packages implemented all over the world recently, the APS can be a fair market contract...
Full Text Available In order to achieve commercial banks liquidity, safety and profitability objective requirements, loan portfolio risk analysis based optimization decisions are rational allocation of assets. The risk analysis and asset allocation are the key technology of banking and risk management. The aim of this paper, build a loan portfolio optimization model based on risk analysis. Loan portfolio rate of return by using Value-at-Risk (VaR and Conditional Value-at-Risk (CVaR constraint optimization decision model reflects the bank's risk tolerance, and the potential loss of direct control of the bank. In this paper, it analyze a general risk management model applied to portfolio problems with VaR and CVaR risk measures by using Using the Lagrangian Algorithm. This paper solves the highly difficult problem by matrix operation method. Therefore, the combination of this paper is easy understanding the portfolio problems with VaR and CVaR risk model is a hyperbola in mean-standard deviation space. It is easy calculation in proposed method.
Borodachev, S. M.; Medvedev, M. A.
The theory of efficient portfolios developed by Markowitz is used to optimize the structure of the types of financial operations of a bank (bank portfolio) in order to increase the profit and reduce the risk. The focus of this paper is to check the stability of the model to errors in the original data.
Full Text Available In this paper we proposed an analysis of the financial crisis impact on the procedures formanagement of loan portfolios in several banking systems. Despite ample liquidity injectionprograms implemented by major central banks and government actions, credit risk remains a keychallenge of the current banking systems. On a medium term, the high percentage of bad loans hasbecome a structural vulnerability. To maintain an acceptable quality of loan portfolios and not todamage the prudential and profitability indicators, credit institutions in EU member states haveproceeded to apply various techniques for credit restructuring. The quantitative analysis carried out inthe last part of the paper revealed a relatively moderate granularity of banking systems considered, interms of capitalization, volume of bank reserves and net provisions, in response to the persistent trendof loan portfolio deterioration.
Mathematical model of the loan portfolio structure change in the form of Markov chain is explored. This model considers in one scheme both the process of customers attraction, their selection based on the credit score, and loans repayment. The model describes the structure and volume of the loan portfolio dynamics, which allows to make medium-term forecasts of profitability and risk. Within the model corrective actions of bank management in order to increase lending volumes or to reduce the risk are formalized.
Tahereh Shirzad Kebria
Full Text Available This paper presents an empirical investigation to determine factors influencing on loan repayment in one of Iranian banks named Sepah Bank over the period 2012-2013. The study selects a sample of 290 bank’s customers who received loans and, using logistic regression technique, tries to find whether or not qualitative as well as quantitative characteristics of loan receivers influence on repayment of loans. The results indicate that history of outstanding debt as well as customers’ past experiences with banks had meaningful relationships with having bad credit and non-payment of loans. In our survey, having a bad credit in the past had positive relationship with non-payment of loans but long-term customers had negative relationship with non-payment of loans. In addition, working capital turnover ratio, cash ratio, total liabilities, current assets and loan value had significant impact on non-repayment of the loan facilities.
Rasmussen, Kourosh Marjani; Clausen, Jens
reduction and LP relaxation are used to obtain near optimal solutions for large problem instances. Our results show that the standard Danish mortgagor should hold a more diversified portfolio of mortgage loans, and that he should rebalance the portfolio more frequently than current practice....
Bolt, Wilko; Humphrey, David
Based on frontier analysis, we derive inferences of bank consumer loan competition from estimating a revenue-cost 'competition efficiency' (CE) frontier. The competitiveness of the $400 billion U.S. bank consumer loan market is then assessed by comparing results from our frontier CE measure with
Namolosu Simona Mihaela
Full Text Available The Small and Medium Enterprises (SMEs represent an important target market for commercial Banks. In this respect, finding the best methods for designing and implementing the optimal marketing strategies (for this target are a continuous concern for the marketing specialists and researchers from the banking system; the purpose is to find the most suitable service model for these companies. SME portfolio of a bank is not homogeneous, different characteristics and behaviours being identified. The current paper reveals empirical evidence about SME portfolio characteristics and segmentation methods used in banking system. Its purpose is to identify if segmentation has an impact in finding the optimal marketing strategies and service model and if this hypothesis might be applicable for any commercial bank, irrespective of country/ region. Some banks are segmenting the SME portfolio by a single criterion: the annual company (official turnover; others are considering also profitability and other financial indicators of the company. In some cases, even the banking behaviour becomes a criterion. For all cases, creating scenarios with different thresholds and estimating the impact in profitability and volumes are two mandatory steps in establishing the final segmentation (criteria matrix. Details about each of these segmentation methods may be found in the paper. Testing the final matrix of criteria is also detailed, with the purpose of making realistic estimations. Example for lending products is provided; the product offer is presented as responding to needs of targeted sub segment and therefore being correlated with the sub segment characteristics. Identifying key issues and trends leads to further action plan proposal. Depending on overall strategy and commercial target of the bank, the focus may shift, one or more sub segments becoming high priority (for acquisition/ activation/ retention/ cross sell/ up sell/ increase profitability etc., while
Full Text Available Solved how to optimize the system of accounting and analytical indicators to assess the level of risk and the effectiveness of the Bank's credit activity, on the basis of scale, scope and structure of the credit portfolio; the turnover of credit investments; the problematical character of the loan portfolio and the level of risk and security of the loan portfolio. Exploring the possibility of accounting on the basis of which analysis calculated metrics and evaluation of significance proposed, in contrast to the current Grad C system with more than 50 indicators, the most informative in the amount of 20–25, which allow daily operational way to assess the level of credit portfolio management of the Bank. This contributes to the daily detailed sub-accounts trial balance balance sheet, which consists of all banks and provide the National Bank of Ukraine. So, the most reasonable is the performance in terms of scale and structure – percentage changes; turnover rates – the rate in days; problem – percentage problems; credit risk – factor security loans; management effectiveness factors: the economy, profitability and efficiency.
Henke, Sabine; Burghof, Hans-Peter; Rudolph, Bernd
Banks increasingly recognize the need to measure and manage the credit risk of their loans on a portfolio basis. We address the subportfolio "middle market". Due to their specific lending policy for this market segment it is an important task for banks to systematically identify regional and industrial credit concentrations and reduce the detected concentrations through diversification. In recent years, the development of markets for credit securitization and credit derivatives has provided n...
... importance of public engagement, proposed Sec. 1290.2(c) would require the Banks to include notices on their... FEDERAL HOUSING FINANCE AGENCY 12 CFR Part 1290 RIN 2590-AA38 Federal Home Loan Bank Community... by requiring the Federal Home Loan Banks (Banks) to monitor and assess the eligibility of each Bank...
Beck, T.H.L.; Behr, P.; Guttler, A.
Using a unique data set for a commercial bank in Albania, we analyze gender differences in loan officers’ performance. Loans screened and monitored by female loan officers have a lower likelihood to turn problematic than loans handled by male loan officers. This effect cannot be explained by
Full Text Available Determining the status and problems of modern investment in agricultural enterprises, as well as ways to improve their financial security. The article deals with the essence of investments and their varieties. The dynamics of the securities portfolio of domestic banks and investments in agriculture. According to a study submitted proposals to increase investment banking businesses in the agricultural sector, which is necessary to create such conditions are not included in the calculation of the volume of investment regulations investment banking provided by agribusiness companies; availability of specialized banks, which will focus its resources on the development of agricultural enterprises; give banks the opportunity to issue special investment certificates, which received funds will be channeled exclusively on investing in the development of agricultural enterprises; for the above to create an appropriate legal framework.
This paper analyzes the fast development of consumer loans including housing loans in Cambodia to check whether or not such a development posts any stability risk to banking system in Cambodia. Using stress-testing method, the paper finds that current level of consumer loans provided by banks does yet creates a big threat to the banking stability in Cambodia. Rather, the surge reflects consequences of positive development in the banking system and economy as a whole, including the rise of mid...
Roč. 9, č. 9 (2009), s. 1-48 ISSN 1803-7070 Institutional research plan: CEZ:AV0Z10750506 Keywords : multinational banks * bank loan pricing * internal capital market Subject RIV: AH - Economics http://library.utia.cas.cz/separaty/2010/E/derviz-funding costs and loan pricing by multinational bank affiliates.pdf
In this paper we document evidence of systemic risk taking from syndicated loan pricing. Using U.S. syndicated loan data, we find that the borrower's idiosyncratic risk is positively priced whereas systematic risk is negatively related to loan spreads, controlling for firm, loan and bank specific
... 13 Business Credit and Assistance 1 2010-01-01 2010-01-01 false Minimum level of 504 loan activity and restrictions on portfolio concentrations. 120.828 Section 120.828 Business Credit and Assistance SMALL BUSINESS ADMINISTRATION BUSINESS LOANS Development Company Loan Program (504) Requirements for Cdc...
Thompson, Peter; Borgeson, Merrian; Kramer, Chris; Zimring, Mark; Goldman, Charles
Under the Clean Energy Works (CEW) program, Craft3 developed a loan product that widened access to financing for homeowners, offered long term funding, and collected repayments through the customer?s utility bill. The program?s success led Craft3 to pursue the sale of the loan portfolio to both mitigate its own risks and replenish funds for lending. This sale breaks new ground for energy efficiency finance and is notable as it was completed even with many novel program design elements. It replenished Craft3?s program capital and uncovered some valuable lessons that may facilitate future transactions. However, the lack of data history and the unproven nature of the loan portfolio meant that Craft3 had to limit the risk of losses to Self-Help, the purchaser of the portfolio. It remains to be seen whether this experience will pave the way for more sales of on-bill energy efficiency loan portfolios. This case study illustrates how certain program design decisions can sometimes both facilitate programmatic objectives and possibly present challenges for the sale of a portfolio of energy efficiency loans.
Beck, T.H.L.; Behr, P.; Guttler, A.
We analyze gender differences associated with loan officer performance. Using a unique data set for a commercial bank in Albania over the period 1996 to 2006, we find that loans screened and monitored by female loan officers show statistically and economically significant lower default rates than
Peterson K. Ozili
Full Text Available We review the recent academic and policy literature on bank loan loss provisioning. Among other things, we observe that there exist some interaction between LLPs and existing prudential, accounting, institutional, cultural, religious, tax and fiscal frameworks which differ across countries; and we find that managerial discretion in provisioning is strongly linked to income smoothing, capital management, signalling, tax management and other objectives. We also address several issues including the ethical dimensions of income smoothing, factors influencing income smoothing, methodological issues in LLP modelling and the dynamic loan loss provisioning experiment; which opens up several avenues for further research such as: finding a balance between sufficient LLPs which regulators want versus transparent LLPs which standard setters want; the sensitivity of abnormal LLPs to changes in equity; the persistence of abnormal LLPs following CEO exit; country-specific interventions that induce LLP procyclicality in emerging countries; the impact of Basel III on banks' provisioning discretion; LLP behaviour among systemic and non-systemic financial institutions; etc. We conclude that regulators need to pay attention to how much discretion lending institutions should have in determining reported provision estimates, and this has been a long standing issue.
Seyed Kazem Ebrahimi
Full Text Available This paper investigates the relationship between different granting loans and bank deposits in some governmental banks in province of Semnan, Iran. For the proposed study of this paper, equipment of resources includes cash account, zero-interest account, short term investment and long term investment and these are considered as dependent variables. There are also seven types of granting loans devoted to customers, which are partnership loans, zero-interest loans, civic participation, contract quantity loans, future contract loans, rent-purchase loans and installment sales loans. The study considers the financial information of 171 governmental banks located in province of Semnan, Iran over the period 2006-2011. The results of our study indicate that five variables maintain positive impact on dependent variable. The highest impact belongs to Partnership loans (0.34, followed by Sales loans (0.24, contract quantity loans (0.21 and Zero-interest loans (0.16 and Future contract loans (0.14 come in the last position. The study also uses Freedman test to rank dependent factors and the results indicate that short- term investment is number one priority followed by long term investment and the other two options including zero-interest and cash accounts are in lower priority.
Grant E. Muller
Full Text Available We model a Basel III compliant commercial bank that operates in a financial market consisting of a treasury security, a marketable security, and a loan and we regard the interest rate in the market as being stochastic. We find the investment strategy that maximizes an expected utility of the bank’s asset portfolio at a future date. This entails obtaining formulas for the optimal amounts of bank capital invested in different assets. Based on the optimal investment strategy, we derive a model for the Capital Adequacy Ratio (CAR, which the Basel Committee on Banking Supervision (BCBS introduced as a measure against banks’ susceptibility to failure. Furthermore, we consider the optimal investment strategy subject to a constant CAR at the minimum prescribed level. We derive a formula for the bank’s asset portfolio at constant (minimum CAR value and present numerical simulations on different scenarios. Under the optimal investment strategy, the CAR is above the minimum prescribed level. The value of the asset portfolio is improved if the CAR is at its (constant minimum value.
... 7 Agriculture 11 2010-01-01 2010-01-01 false Concurrent Bank and RUS cost-of-money loans. 1610.6..., DEPARTMENT OF AGRICULTURE LOAN POLICIES § 1610.6 Concurrent Bank and RUS cost-of-money loans. (a) The Bank makes loans, under section 408 of the Act, concurrently with RUS cost-of-money loans made under section...
... 12 Banks and Banking 1 2010-01-01 2010-01-01 false Loans originating at other than banking offices. 7.1004 Section 7.1004 Banks and Banking COMPTROLLER OF THE CURRENCY, DEPARTMENT OF THE TREASURY BANK ACTIVITIES AND OPERATIONS Bank Powers § 7.1004 Loans originating at other than banking offices. (a) General...
Full Text Available In this paper we used a panel of Albanian banks for the period 2004-2014 to examine the main determinants of loan loss provisions. In addition, we tested how the latest crisis has affected provisioning behaviour of the banks. We find that loan loss provisions of banks are driven by non-discretionary components and economic fluctuations. Furthermore, we find a positive and significant result between earnings before interest, taxes and provisions and loan loss provisions, thus confirming the income smoothing hypothesis. Our estimated results do not support the capital management and signalling hypotheses. We also find that the global crisis has contributed significantly to the procyclicality of loan loss provisioning in Albania and banks continued to do income smoothing during the crisis.
Bos, J.W.B.; Lamers, M.; Purice, V.
We examine the relationship between bank size and financial stability by viewing the supervisor of a banking system as an ‘investor’ holding a portfolio of banks. Based on this view, we investigate the role of large banks in determining the systemic risk in this portfolio. Our results, based on book
Full Text Available VaR has become the standard measure that financial analysts use to quantify market risk. VaR measures can have many applications, such as in risk management, to evaluate the performance of risk takers and for regulatory requirements, and hence it is very important to develop methodologies that provide accurate estimates. In particular, the Basel Committee on Banking Supervision at the Bank for International Settlements imposes to financial institutions such as banks and investment firms to meet capital requirements based on VaR estimates. In this paper we determine VaR for a banking currency portfolio and respect rules of National Bank of Romania regarding VaR report.
Full Text Available The main objective of the paper is to find out the determinants of NPAs in the Indian Banking sector and to study if these determinants vary across the three different ownership structures viz., public sector banks (PSBs, private banks (PBs and foreign banks (FBs, of banks in India. The panel data for all the banks from 2005 to 2014 is collected from the official website of Reserve Bank of India (RBI, the Central Bank of the country. The econometric technique of Fixed Effects model and Random Effects model is used for the purpose. The results reveal that Macro economic factors, like log of percapita income (LPCY and Inflation (INFN, are significantly affecting NPLs in Public Sector Banks (PSBs. In case of private banks (PBs LPCY is highly significant while bank specific variables like size and total loans to total loans of the banking sector (TLTLBS are significant at 10% level. For FBs none of the variables were significant.
Full Text Available This paper examines whether there is a causal relationship between bank loans and deposits in the Vietnamese banking system and the efficiency of the use of loans and deposits by the Vietnamese banks. In a country such as Vietnam, where inter-bank money markets are relatively underdeveloped, one would expect a reasonably strong relationship between deposits and loans. A pooled cross-sectional sample of financial ratios is collected from annual reports of 44 Vietnamese banks covering the period 2008–2015. The explanatory power of instrumental variables in relation to the endogenous variables is tested. A deterministic frontier model based on corrected ordinary least squares, estimated by three-stage least squares on a simultaneous equations model, is employed to derive the frontiers for the sampled banks as well as to estimate the causality between bank loans and deposits. Our findings suggest that, in an underdeveloped banking system such as Vietnam, bank deposits have a positive and significant impact on bank loans, but the reverse relationship is not significant. It is further suggested that in deposit-taking and loan-creating activities, Vietnamese banks performed moderately well over the period examined; however, in the near future, they should start to focus more on deposit-taking activities.
Derviz, Alexis; Raková, M.
Roč. 21, č. 4 (2012), s. 434-449 ISSN 1210-0455 Institutional support: RVO:67985556 Keywords : multinational bank * interest rate * internal capital market Subject RIV: AH - Economics Impact factor: 0.561, year: 2012 http://library.utia.cas.cz/separaty/2013/E/derviz-parent influence on loan pricing by czech banks.pdf
... Bank Greer South Carolina. First National Bank of South Carolina Holly Hill South Carolina. Kingstree... Bank and Trust Company Jacksonville......... Illinois. Bank of Kampsville Kampsville Illinois. Kent Bank Kent Illinois. First Federal Savings & Loan Association of Kewanee... Kewanee Illinois. Union...
Aniefiok Akpan Umoren
Full Text Available Increasing trend in Non-performing loans (NPLs adversely affected availability of credits to economic agents in all sectors of the economy thereby constraining financial intermediation and economic activities. The study examined the trend and growth rates of NPLs in the Nigerian banking system during the major banking policy reforms regimes namely: pre-consolidation (1979 – 2004 and post consolidation era (2005 – 2014. Time series data collected were analyzed using descriptive and regression analyses. Results indicated irregular fluctuations in NPLs’ trend in both periods. This result suggested prevalent of high credit risk and corresponding reduction in lending capability of banks in the economy. Regression estimates of NPLs’ trend in the two regimes showed significant negative growth rates. This implies that, financial policies implemented in the country yielded positive impacts over time. NPLs assumed an exponential growth rate of -1.39% and -15.55% during the pre and post consolidated eras respectively. An average exponential growth rate of -5.2% was obtained during the entire period. Quadratic trend analysis revealed that, increase influence of time variable significantly reduced NPLs during pre- consolidation regime and the entire period considered. However, this influence was stagnated during post consolidation period. Based on the result, it is recommended that, prudent lending coupled with swift and orderly clean-up of banking system loan portfolios should be adopted to decelerate NPLs trend and growth rate in Nigeria. Time is an important element in designing and implementing any banking and macroeconomic policy.
... issue a Federal guaranty covering any issued Security. With prior approval from EDA, an RLF Recipient... 13 Business Credit and Assistance 1 2010-01-01 2010-01-01 false RLF loan portfolio Sales and Securitizations. 307.19 Section 307.19 Business Credit and Assistance ECONOMIC DEVELOPMENT ADMINISTRATION...
Full Text Available A bank loan is the main form of economical credit. It is for corporate activities â€“ for medium and big companies and for retail activities â€“ for small companies and individuals. The conditions for credit mainly depend on the quality of customers, it means their ability to perform a profitable activity and to be able to pay back the credits. For reasons which are mainly connected to marketing, bank practice has developed a large range of credit names, trying to emphasize some of the parts of the products or to take profit of some competition advantages in relation with customersâ€™ products. We are trying to include the offer of bank loans in a typology which takes into account the law, the bank field rules and the main technical features of the offered products.
... business days between the hours of 10 a.m. and 3 p.m. at the Federal Housing Finance Agency, Fourth Floor... FEDERAL HOUSING FINANCE BOARD 12 CFR Part 914 FEDERAL HOUSING FINANCE AGENCY 12 CFR Part 1260 RIN 2590-AA35 Information Sharing Among Federal Home Loan Banks AGENCY: Federal Housing Finance Agency...
... combines provisions now found in the Finance Board regulations part 965, Sources of Funds, and part 969... FEDERAL HOUSING FINANCE BOARD 12 CFR Parts 965, 966, 969, and 987 FEDERAL HOUSING FINANCE AGENCY 12 CFR Part 1270 RIN 2590-AA36 Federal Home Loan Bank Liabilities AGENCY: Federal Housing Finance...
... combine provisions now found in the Finance Board regulations part 965, Sources of Funds, and part 969... FEDERAL HOUSING FINANCE BOARD 12 CFR Parts 965, 966, 969, and 987 FEDERAL HOUSING FINANCE AGENCY 12 CFR Part 1270 RIN 2590-AA36 Federal Home Loan Bank Liabilities AGENCY: Federal Housing Finance...
The Finance Committee is invited to recommend the Council and the Council is invited to approve the taking out of a loan with FORTIS BANK with the purpose of the repayment of the Organization's debt to the Pension Fund, in accordance with the conditions set out in the Annex 2, thereby authorising the CERN Management to sign the Agreement on 23 June 2006.
Mariana Rodica ȚÎRLEA
In the case of bank loan contracts, we believe that the abuse of power takes the form of contractual terms imposed by breaking the natural order and the contract’s drafting principles, in a properly articulated decisive way, commissioned by one holding it, namely by the party holding the dominant position.
Full Text Available Receiving punishment from regulators for corporate fraud can affect financing contracts between a firm and its bank, as both the firm’s credit risk and information risk increase after punishment. By focusing on Chinese firms’ borrowing behavior after events of corporate fraud, we find that firms’ bank loans after punishment are not only significantly lower, but are also less than those for non-fraudulent firms. In addition, loan interest rates after punishment are not only higher than before, but also higher than those for their non-fraudulent counterparts. In addition, we find that corporate fraud indirectly destabilizes the “performance-bank loan” relationship. Our results suggest that corporate fraud negatively affects a firm’s ability to source debt financing, which provides new evidence about the economic consequences of fraud.
... 1273 and 1274 RIN 2590-AA30 Board of Directors of Federal Home Loan Bank System Office of Finance... Finance Agency's (FHFA) regulations, the Federal Home Loan Bank System's (Bank System) Office of Finance... assess the strength of the Bank System that stands behind them. The Office of Finance (OF) is governed by...
N. Viswa Nadham
Full Text Available The study attempts to ascertain the determinants of nonperforming loans in National Bank of Commerce. Data was collected from 152 respondents. Tables, percentages, mean and standard deviation were used to analyze data. Data collection methods adopted for the study were interview, questionnaire and documentary evidence. Interest rate, GDP, concentration of lending activities, bank’s loan supervision capacity and economic condition were investigated, and the results suggest that interest rate, GDP, bank’s loan supervision capacity and economic condition influence the level of NPLs. However, the results did not suggest that concentration of lending activities increase the level of NPLs. The study suggests that banks should put in place a vibrant credit process that ensures proper customer selection and risk identification, robust credit analysis, proactive monitoring and clear recovery strategies for bad loans, formulate clear policy framework that addresses issues of ethical standards and check and balance credit process, organizational capacity enhancement of banks, deliberate effort to develop credit culture for managing loans ,and ensure prudent policies that govern bank loans. Since the results for this study were encouraging, the researcher encourages replicating the study for other lending institutions. In order to extend the literature on non-performing loans, the researcher suggested incorporating models of Golem effect, Social loafing, Inverted pyramid effect, Pollyanna effect and High default culture effect. Also, basing on the merits of the study, the researcher suggests determining relationship between non-performing loans and loan size, collateral, credit culture, and credit management information system.
In the wake of the global financial crisis, the Basel Committee encourages a dynamic provisioning system. Reducing the pro-cyclical effect of loan loss provisioning is a way to achieve this. Therefore, this dissertation’s main objective is to determine if the provisioning system in Hong Kong commercial banks is pro-cyclical. Based on a sample of 35 commercial banks in Hong Kong ranging a decade from 2005 to 2014, and by applying the methodology of system GMM, this dissertation proves that the...
Dmitrii S. Melnyk
Full Text Available The article deals with the structure and factors of credit portfolio risk, analyses existing models of portfolio risk assessment and develops recommendations on the implementation of risk management adapted methods, presents recommendations on the optimization of the approach to credit risk minimization in Russian banking system.
Flávio Clésio Silva de Souza
Full Text Available The purpose of the present research is to apply a Multilayer Perceptron (MLP neural network technique to create classification models from a portfolio of Non-Performing Loans (NPLs to classify this type of credit derivative. These credit derivatives are characterized as the amount of loans that were not paid and are already overdue more than 90 days. Since these titles are, because of legislative motives, moved by losses, Credit Rights Investment Funds (FDIC performs the purchase of these debts and the recovery of the credits. Using the Multilayer Perceptron (MLP architecture of Artificial Neural Network (ANN, classification models regarding the posterior recovery of these debts were created. To evaluate the performance of the models, evaluation metrics of classification relating to the neural networks with different architectures were presented. The results of the classifications were satisfactory, given the classification models were successful in the presented economics costs structure.
Koulischer, François; Van Roy, Patrick
We show that illiquid assets such as bank loans are used by euro area banks both as central bank collateral for short-term liquidity insurance purposes and for longer-term funding purposes for issuing covered bonds or asset-backed securities. We then explore the determinants of the choice of using bank loans for short-term liquidity insurance purposes or long-term funding purposes focusing on the case of Belgian banks. We find that (1) loan types are key to alleviating asymmetries of informat...
Christophe J. Godlewski; Ydriss Ziane
The aim of this paper is to empirically investigate the determinants of creditor concentration in the use of bank loans by firms in a European cross-country framework. We analyze the influence of loan and borrower characteristics but also banking market structure and legal enforcement country-specific variables that are expected to influence the financial and strategic decision relative to the number of bank lenders. We find that firms tend to diversify sources of financing by reducing bank c...
Full Text Available This article examines the existing Bank Lending Survey (BLS approaches to the assessment of the non-price lending conditions' impact on the credit market balance. BLS responses provided domestic central banks an early and reliable signal about the deterioration of financing conditions and the financial access. The monitoring pattern stipulate by using the core indicators: net percentage, diffusion index, Bank Lending Tightness (BLT. The priority tasks for National Bank of Ukraine for Bank Lending Survey were put forward by author. Senior Loan Officer Opinion Survey (SLOOS on Bank Lending Practices address changes in the supply of, and demand for, bank loans to businesses and households over the past months.
... provide AHP direct subsidy to enable eligible households with subprime or nontraditional loans held by a...-value ratio, payment history, type of original loan (e.g., subprime or nontraditional), and reasons for...: Federal Home Loan Bank Mortgage Refinancing Authority AGENCY: Federal Housing Finance Agency. ACTION...
Bogdan Florin FILIP
Full Text Available The paper aims identifying and analysing the determinants of bad loans in the banks from Central and Eastern Europe, while their accumulation may lead to malfunctions on macroeconomic level. Analysing 38 of the most representative banks in the region during 2004-2013, we found significant positive linkages of bad loans ratio with cost to income ratio, unemployment and crisis, but also significant negative linkages with bank size, activity mix, bank risk taking behaviour, real GDP growth and inflation. Moreover, using Panel Least Squares Fixed Effects Method, we found that the main determinants of bad loans ratio increase are bank size, crisis, unemployment and cost to income ratio. Contrary, activity mix, bank risk taking behaviour, real GDP growth and inflation proved to act against bad loans accumulation. The results offer important lessons which may be useful in the future both for the banks and also for the governments from this region.
Full Text Available A loan is probably the most important financial decision we make in life. In a time when lack of time affects us in every way, including financially, we can only appeal to specialists if we want fast, reliable and quality long-term services. „The notion of “creditor” includes all legal entities, branches of credit institution and nonbankingfinancial institutions that operate in Romania and grant or undertake to grant loans in itscommercial of professional activity”. In the case of loans, the "specialist" has been called loan broker. Loan broker is a person trained in intermediating bank loans who offers advice on choosing the best financial solutions for each client. Through partnerships with banks in Romania, the broker has access to their credit products and assist customers in choosing the loan that best suits their financial needs and possibilities. Moreover, the broker will help in preparing loan application to be submitted to the bank and pursue it to its completion. Loan broker can be defined as the person authorized by the bank or non-bank financial institutions to promote their products through direct contact with natural or legal persons wishing to contract a loan, without any of the parties to have exclusivity. There can be defined as an independent bank or non-bank financial institution, as an intermediary between customers and banks. Through its financial advisors , the company helps customers overcome the difficulty of understanding the credit products, difficulties arising from the multitude of factors that compose such a product, especially in the case of a housing loan or mortgage. Each financial institution is doing everything possible through such partnerships to attract the largest possible portfolio of clients, therefore is developing a real network of brokers to be partners for local or national level (depending on the sites coverage of the branches of each institution on one or more types of credit products. The
Bernard Ndirangu Wachira
Full Text Available Household loans remain the engine to productivity and economic growth globally. Non-prime household loan is essential, because it enables the borrowers with no collateral to access credit from Microfinance Banks. The survival and sustainability of non-prime household loans globally is therefore significant. Credit risk however remains the main deterrent of the soundness of Microfinance Banks. This leads to the poor performance of microfinance institutions in many economies in the world. Several countries globally are making inroad in reducing the credit risks, which lead to the poor performance of Microfinance Banks. It is still unknown why the credit risk affects the performance of non-prime household loans in the Microfinance Banks domiciled in Kenya. The reason for conducting this study is to determine the level at which the third party loan guarantee and the performance of non-prime household loans relate to the Microfinance Banks in Kenya. Particularly, this study is to determine how the amount secured by guarantee, recoveries from guarantors, percentage of loan secured, and percentage recoveries from guarantors relate to the performance of nonprime household loans in the Microfinance Banks in Kenya. The population was 516 senior management employees of the banks. The researcher conducted a multiple regression analysis for determining the relationship between the amount secured by guarantee—recoveries from guarantors, percentage granted, and percentage recoveries—and the performance of non-prime household loans. The R and R2 were used for determining the strength of the relationship and the coefficient of determination at 0.05 level of significance of variables. The result of this study reveals that there exists a strong relationship between the dependent and independent variables, thereby contradicting the null hypothesis, which states that the relationship does not exist. The percentage of the recoveries from the guarantors over the
... 12 Banks and Banking 3 2010-01-01 2010-01-01 false Bank loans to replenish working capital used to... Bank loans to replenish working capital used to purchase mutual fund shares. (a) In a situation... to secure working capital. The bank was prepared to lend amounts equal to 70 percent of the current...
Bernard Ndirangu Wachira
Full Text Available The part played by non-prime household loans in improving the lives of many people who cannot afford collateral globally cannot be ignored. Many Microfinance Banks in many economies worldwide have tried to maintain the Grameen Bank Model of granting microloans, mainly non-prime household loans. However, the credit risks associated with this initiative hamper the pace at which the granting of this credit facility is expected to grow. This study intends to explore the relationship between the post loan disbursement allocation and the performance of non-prime household loans in the Microfinance Banks in Kenya. The theory associated to this study is the Credit Risk Theory. This theory, which is regarded as credit structural theory, was developed by Merton in 1972. The descriptive survey research design method was applied, and the sample size was 150 respondents. The data-collection tool used was a questionnaire. A logistic regression analysis was conducted for the purpose of predicting non-prime household performance in the Microfinance Banks using training budget, recoveries budget, percentage of training budget, and percentage of recoveries budget as predictors. The Wald test shows that training budget, recoveries budget, and percentage of training budget were good predictors, making a significant contribution to prediction. The percentage of budget on recoveries was not a significant predictor. The Microfinance Banks should enhance the performance of non-prime household loans through capacity building to the borrowers and educate the borrowers on dangers of enforced loan recoveries. The government, through the Central Bank of Kenya, should have a training policy for the Microfinance Banks so that they can enlighten the borrowers on proper financial management to avoid conflicts with borrowers during loan recoveries.
Full Text Available The aim of this study is to understand the bank lending behavior during financial crisis, in particular whether an increase of credit risk during this period can lead banks to reduce their lending activity. A second object is to investigate whether cooperative and commercial banks show different behaviors. The analysis is based on a sample of Italian banks (listed and no listed, an example of a country undergoing a credit crunch. The sample consists of 488 listed and unlisted Italian banks observed 2007-2013. Unlisted banks are included because they are the most numerous in the Italian banking system. Findings show a negative impact of credit risk on bank lending behavior, with regard to both credit risk measures: the nonperforming loans and the loan loss provision ratio.
Full Text Available Penelitian ini bertujuan untuk menganalisis pengaruh capital adequacy ratio, total aset, loan to deposit ratio, kualitas aktiva produktif dan biaya operasional terhadap pendapatan operasional terhadap non performing loan pada Bank Umum di Bursa Efek Indonesia periode tahun 2007sampai dengan tahun 2014. Sampel yang digunakan dalam penelitian ini adalah 10 Bank Umum di BEI. Penelitian ini menggunakan metode regresi data panel dengan efek random. Hasil penelitian menyimpulkan bahwa capital adequacy ratio, loan to deposit ratio, kualitas aktiva produktif dan biaya operasional terhadap pendapatan operasional berpengaruh signifikan terhadap non performing loan, sedangkan variabel total aset tidak berpengaruh signifikan terhadap non performing loan. Model efek random layak digunakan untuk mengestimasi pengaruh capital adequacy ratio, total aset, loan to deposit ratio, kualitas aktiva produktif dan biaya operasional terhadap pendapatan operasional terhadap non performing loan.
... field of membership, board minutes and loan portfolio); (c) Credit unions that have a history of... limit? 723.17 Section 723.17 Banks and Banking NATIONAL CREDIT UNION ADMINISTRATION REGULATIONS AFFECTING CREDIT UNIONS MEMBER BUSINESS LOANS § 723.17 Are there any exceptions to the aggregate loan limit...
Full Text Available PT. Bank X (Persero, Tbk has credit business unit and one of them is located in Bogor, which experienced decreased performance from year to year because of the increasing of competitiveness among rivalry. The decrease of performance measured both from realization of distribution credit and level of bad loans or Non Performing Loans (NPL. This research aimed to analyze the loan portfolio strategies based on the precautionary principle in the company. This research begins with identification factors affecting the company on its business both internal and external factors. The study was conducted qualitatively by filling questionnaires and in-depth interviews to seven experts on credit sector. Internal and external factors are treated with EFE-IFE matrix then IE matrix to determine the condition of the company, then a SWOT analysis to formulate some alternative strategies was carried out and last method is QSPM to choose the best strategic alternatives for the company. The results showed that the relative strength of the company has not been strong in overcoming internal weaknesses, but the company is considered good enough to take advantage of the opportunities that exist outside and can overcome challenges. Interest rates on loans, convenience and services to debtors, the technology owned by, also the opening of the public mindset about the banking world are the important factors that affect the company in doing business. Based on the QSPM result, supply chain utilization from existing debtor is the best strategy for prudent lending in company.Keyword: loan, non performing loan, IE Matrix, SWOT, QSPMABSTRAKPT. Bank X (Persero, Tbk memiliki salah satu unit bisnis penyalur kredit yang terletak di Bogor dan mengalami penurunan kinerja dari tahun ke tahun akibat persaingan yang semakin kompetitif. Penurunan kinerja tersebut diukur dari sisi realisasi penyaluran kredit maupun dari tingkat kredit macet. Penelitian ini bertujuan untuk menganalisis
Full Text Available This paper examines the incidence of bank financing among Ghanaian listed companies and the determinants of listed firms’ reliance on bank borrowing. The empirical results from a regression model reveal that bank loans account for one-third of debt financing. This suggests that bank loans are important in financing Ghanaian listed firms. The results also show that asset structure, growth opportunities and interest rates have significantly positive associations with bank debt ratio, while age of the firm, size of the firm, profitability and firm risk are significantly and negatively related to bank debt ratio. The results generally indicate that bank loans represent an important source of financing Ghanaian listed firms.
Full Text Available This research aimed to analyze the effect of money deposit on the bank and non performing loans on creditallocation from Bank Rakyat Indonesia in 2000-2009. The method of analyze was dynamic regression modelby Error Correction Model (ECM approach version Domowitz and Elbadawi. Our empirical results showedthat only non performing loan on the short term had a significant effect to credit allocation from Bank RakyatIndonesia on the short term and long term. The variable money deposit of the bank did not have a significanteffect on credit allocation from Bank Rakyat Indonesia both on short term and long term period.
L. Norden (Lars); A. Stoian (Anamaria)
textabstractWe investigate whether banks use of loan loss provisions (LLPs) to manage the level and volatility of their earnings and examine the implications for bank risk. We find that banks use LLPs to manage the level and volatility of earnings downward when they are abnormally high and when
... in 1-4 family real estate in an amount that does not exceed 80 percent of the appraised value of the... concerns about credit quality, undue concentrations in the bank's portfolio of residential real estate, small business, or small farm loans, or concerns about the bank's overall credit risk management systems...
This study aims to analyze the effect of Capital Adequacy Ratio (CAR), Non Performing Loan (NPL), Operational Efficiency Ratio (OER), Loan to Deposit Ratio (LDR) on profit growth devisa bank. This research used time series data from Bank Indonesia’s year’s published financial report of Devisa Bank. After passed the purposive sample phase, the number of valid sample is 20 banks. This research used multiple regression analysis to analyse the data. Type of data used are secondary data and poo...
... on private-label MBS that were backed by subprime and nontraditional residential mortgage loans. To address certain issues associated with subprime and nontraditional loans, the Finance Board's Office of....g., subprime or Alt-A loans). \\5\\ This provision was in section II.B. of the FMP, and no longer...
Bathmanathan Vasie Naicker
Full Text Available Since it has been observed that credit granting is a serious problem across the entire credit market, South Africa introduced National Credit Act 34 of 2005 in order to regulate the credit industry and protect credit consumers from becoming over-indebted. The study highlights and examines the implementation of the Act in relation to the South African home loans market, focussing on First National Bank home loans portfolio. The study documents that the current state of consumer indebtedness shows that both credit institutions and consumers were responsible for over extending retail credit. The study noticed that credit industry has significantly managed to regulate the retail credit through the implementation of the Act. Furthermore, the study finds that a new stakeholder such as a debt counsellor has been introduced into the retail credit value chain for debt counselling for over-indebted clients. However, the study recommends that internal forums within banks as well as industry-wide forums should be used in order to ensure that the implementation of a regulation that impacts the entire credit industry is implemented with all stakeholders to limit any possible misinterpretation of key sections of a new regulation.
Brown, M.; Ongena, S.; Yesin, P.
We examine the firm-level and country-level determinants of the currency denomination of small business loans. We introduce an information asymmetry between banks and firms in a model that also features the trade-off between the cost of debt and firm-level distress costs. Banks in our model don’t
... savings and loan crisis. 12 U.S.C. 1441b(a), (b). RefCorp issued approximately $30 billion of long-term...)(i). The Banks' payment obligation was to continue until the value of all payments made by the Banks to RefCorp equaled the value of a benchmark annuity of $300 million per year that commenced on the...
Koeter-Kant, J.; Hernandez-Canovas, G.
This article examines the influence of cross-country differences on bank loan maturity for small and medium-sized enterprises (SMEs), using a sample of 3366 SMEs from 19 European countries. It analyses a country's legal and institutional environment while controlling for banking structure, economic
Călin Viorel Iuga
Full Text Available Identifying the risks generated in the matter of by the assignment of claim arising from a bank loan agreement following the review the of the court judgments delivered by courts within the Cluj Court of Appeal. The result of the study is practical, topical,with implications on the banking market in Romania of the practitionersidentified deem that the bank loan agreement loses its enforceability following the assignment of claim, and the novation of the assignee creditor during the enforcement did not occur.
Full Text Available In most countries, the central bank is required to hold reserve assets as a means of providing credibility for the value of the fiat currency. These assets can be in the form of gold, foreign exchange or some other internationally recognised reserve asset and are held to permit the country to engage in international transactions. Within recent years, cryptocurrencies have been increasingly utilised for international transactions, and it is possible that the use of these cryptocurrencies might expand in the future. This paper therefore examines the potential role of digital currency balances as part of the portfolio of external assets held by a central bank. Using the case of Barbados, the paper also provides a simulation of the effect holding some proportion of their asset-base would have had on the stability of the foreign reserves as well as the return on the portfolio of assets.
Busch, Ramona; Koziol, Philipp; Mitrovic, Marc
We develop a macroeconomic portfolio stress test that is specifically geared towards small and medium-sized banks. We combine a credit risk stress test which simulates credit impairments via a CreditMetrics type multi-factor portfolio model with an income stress test in the form of dynamic panel data regressions. Based on a stress scenario that extends experience of the financial crisis by integrating the current low interest rate environment, we analyse the stress impact on banks' capital ra...
...; 12 CFR part 1263. B. Banks' Joint and Several Liability and Disclosure Requirements on COs The Banks fund their operations principally through the issuance of consolidated obligations (COs), which are... COs may be issued only through OF as agent for the Banks, and the Banks are jointly and severally...
... 12 Banks and Banking 3 2010-01-01 2010-01-01 false What are the limitations on managing or operating a portfolio company held as a merchant banking investment? 225.171 Section 225.171 Banks and Banking FEDERAL RESERVE SYSTEM (CONTINUED) BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM BANK HOLDING...
... 12 Banks and Banking 7 2010-01-01 2010-01-01 false What are the limitations on managing or operating a portfolio company held as a merchant banking investment? 1500.2 Section 1500.2 Banks and Banking DEPARTMENT OF THE TREASURY GENERAL PROVISIONS MERCHANT BANKING INVESTMENTS § 1500.2 What are the limitations...
Jun Qian; Philip E. Strahan
We examine empirically how legal origin, creditor rights, property rights, legal formalism, and financial development affect the design of price and non-price terms of bank loans in almost 60 countries. Our results support the law and finance view that private contracts reflect differences in legal protection of creditors and the enforcement of contracts. Loans made to borrowers in countries where creditors can seize collateral in case of default are more likely to be secured, have longer mat...
... possible that the Banks will not have the same motivation as depository institutions or other business... made by any of the Constituent Banks or their officers, directors or employees; and describe any legal...
... , (202) 414-6421 or Amy Bogdon, Associate Director, Division of Bank Regulation, [email protected] requirement, the regulations include a separate provision that specifies how a Bank is to determine whether a... subsequent to becoming a member. \\8\\ 12 CFR 1263.6. B. Mission of the Banks FHFA regulations define the...
... Disclosure Requirements on COs The Banks fund their operations principally through the issuance of consolidated obligations (COs), which are debt instruments issued on behalf of the Banks by the OF, a joint....\\6\\ Under these regulations, the COs may be issued only through OF as agent for the Banks, and the...
... Association Charter Act and section 307(e) and (f) of the Federal Home Loan Mortgage Corporation Act... Mortgage Corporation (Freddie Mac), or the Federal Home Loan Banks (Banks) for failure to submit or follow... Activities Information Prior to the enactment of the Housing and Economic Recovery Act of 2008 (HERA), the...
Huang, Daisy J.; Leung, Charles Ka Yui; Qu, Baozhi
Based on Chinese city-level data from 1999 to 2012 and controlling for geological, environmental, and social diversity, this study suggests that credit plays a significant role in driving up house prices after the Great Recession, whereas property prices only influence bank lending before 2008. Local amenities such as higher education, green infrastructure, healthcare, and climate also positively affect house prices. Moreover, the impacts of bank loans on housing prices tend to be related to ...
Development banks were set up and restructured over the years in Nigeria by various governments to enhance self reliance and improve incomes of rural and urban farmers in Nigeria with huge sums of money. This paper investigated the extent to which one of such banks, NACRDB, had impacted on farmers' income level ...
... (Exchange Act).\\9\\ In addition, definitions for the terms ``GAAP'' (referring to accounting principles... required under Generally Accepted Accounting Principles (GAAP), as they assert is the case with the Banks... take into consideration the financial and managerial resources of each of the Constituent Banks, the...
... stability or management resources, the interests of the bank's customers, the Federal deposit insurance fund... source of repayment for the loan. (d) Definitions. As used in this section: (1) Acquisition includes a... securities of an issuer for a common purpose pursuant to any contract, understanding, relationship, agreement...
...-AA34 Federal Home Loan Bank Directors' Eligibility, Elections, Compensation and Expenses AGENCY... expenses, subject to the authority of the FHFA Director to object to, and to prohibit prospectively, compensation and/or expenses that the Director determines are not reasonable. DATES: This rule is effective May...
D. Gong (Di); W.B. Wagner (Wolf)
textabstractPublic guarantees extended during systemic crises can affect the relative pricing of risks in the financial system. Studying the market for syndicated loans, we find that banks require lower compensation for aggregate risk than for idiosyncratic risk, consistent with systemic risk-taking
Full Text Available In this research paper we have investigated the key factors which make it easier for non-financial firms to arrange financing from commercial banks. We have collected the data from the year 2001 to 2011 from 220 non-financial firms in Pakistan. We have used two measures of firm-bank relationship. First, if a non-financial firm has a board of director who is at the same time board of director of a commercial bank. Second, if a commercial bank has an equity stake in a non-financial firm. After using Fixed Effect model we have found that firm-bank relationships always matter for arranging bank loan for non-financial firms in Pakistan.
Full Text Available In Romania, with the liberalization of the land market, appears the prospect of functioning of aspecialized agricultural bank which might be named ,,land bank’’. In principle, this institution can buy and sellagricultural land and to provide priority "rural land loan" for farm development. Mainly, it may incorporate anadvantageous loan system created for those who want to buy land for agriculture use, once of the liberalizationof land market since 2014. In this article we present some details about importance of this credit institution andgrant technique of rural land loan . Currently, the number of Romanian farmers grouped in associations is verysmall compared to the millions agricultural holdings. Young farm development can be possible only byappealing to an "engine" type "rural land loans" and which may more quickly solve their financial problems.
If you have a dream of opening or expanding a practice, then bank lending is probably an option you've considered. However, many practitioners are under the false assumption that banks are currently not lending. Untrue! Between 2008 and 2012, banks have loaned an average of $216 billion to small businesses throughout the United States each year. There are two aspects to a bank loan package: (1) your loan application with tax information, asset information, etc.; and (2) your business plan. This article delves into the five reasons banks say "no" to a great healthcare practitioner and what you should include in your business plan to not only have the bank say "yes" to financing your business but also to create a situation where multiple banks are offering to lend you money.
) to farmers in the Isoko South local ogovernment area of Delta State, Nigeria. Using structured questionnaire, data were collected from 78 farmers and 5 bank officials using simple random sampling and purposive sampling respectively.
Nowadays there are many risks related to bank loans, especially for the banks so as to reduce their capital loss. The analysis of risks and assessment of default becomes crucial thereafter. Banks hold huge volumes of customer behaviour related data from which they are unable to arrive at a judgement if an applicant can be defaulter or not. Data Mining is a promising area of data analysis which aims to extract useful knowledge from tremendous amount of complex data sets. In this paper we aim t...
Frank A. Lemoine-Quintero
Full Text Available The objective of the research was to develop a collection management model for the reduction of the uncollectible portfolio generated by the microcredits of the National Development Bank (BNF in the Bolívar canton of Ecuador. A diagnosis was made based on the bank's internal and external analysis to define the strengths and weaknesses. The engineering matrix of the services allows to locate the credits the client quadrants unsatisfied and little satisfied. A budget history was evaluated to grant the credits in order to analyze the main causes of the services that are granted to define the objective and subjective problems. The results obtained allowed to define growth strategies, defense strategies and competitive strategies.
Full Text Available This paper offers an analysis of the regulatory and economic variables in the banking sector which may impact, to a greater or lesser extent, the level of nonperforming loans in Serbia. Although the banking sector, contrary to the rest of the economy, is recording positive results, there is also a simultaneously present and growing trend of nonperforming loans which is threatening to endanger the entire stability of the financial system. To that end, in the statistical and econometric analysis the point of departure were the following determinants: capital adequacy, the amount of loan loss provisions, profitability, ownership structure, and concentration in the banking sector, but also the growth rate of the real GDP. Using defined variables, what was examined was the stationary position of the observed series of data by means of an Augmented Dickey-Fuller (ADF test of unit root, for the period from the last quarter of 2008 and up to the third quarter of 2013. According to the methodology of the National Bank of Serbia, quarterly data were used with the total of 20 observations. The main data sources were different statistical reports published by the National Bank of Serbia.
Dudaš Atila I.
Full Text Available The economic crisis spread in 2008 through the world and reached Serbia, rendered the repayment of banking loans indexed in foreign currencies, mostly in CHF at the time, even more difficult. The growing number of non-performing loans inevitably led to an increase in number of the court proceedings in which the debtors made attempts to have the loan contracts declared null and void. In these proceedings, the courts needed to take a stand on some typical clauses in loan contracts and on some banking practices that the debtors considered to be contrary to the principle of good faith, which, before the crisis, was hardly ever given judicial epilogue. In the majority of cases, two types of clauses proved to be unlawful: a clause establishing a right of the bank to subsequently, i.e. after the formation of the contract, and unilaterally, i.e. without a specific consent of the debtor, change (regularly increase the interest rate for the remainder of the credit period; and a clause establishing the right of the bank to apply different exchange rates, i.e. the buying rate to the disbursement of the loan, and the selling rate to the value of credit installments. These clauses certainly existed even before the crisis, but the difficulties in performing the loans caused by the crisis was the social propelling force that brought these cases within the sight of the judiciary. In this paper the author analyzes the reaction of courts, and subsequently that of the legislator, to the clause in loan contracts entitling the bank to unilaterally increase the variable interest rate after the formation of contract. The application of this clause was usually conditioned on significant changes in international financial markets or changes in the costs of the sources of financing, while in some cases the conditions of the application of the clause were simply changes in the business policy of the bank or the need to operate with profit. In any case, these are
Full Text Available The banking sectors of the transition countries have progressed remarkably in the last 20 years. In fact, banking in most transition countries has largely shaken off the traumas of the transition eraAt the start of the 21st century banks in these countries look very much like banks elsewhere. That is, they are by no means problem free but they are struggling with the same issues as banks in other emerging market countries during the financial crises conditions. The institutional environment differs considerably among the countries. The goal we set with this article is to examine in terms of methodology the most important assessment criteria of a measuring model for bad loans.
Fekri Ali Shawtari
Full Text Available The paper investigates whether there is a significance difference between the practices of discretionary loan/finance loss provisions between Islamic and conventional banks. Same time, the paper tests whether the efficiency may influence the behaviour of discretionary loans/finance loss provisions, taken into consideration other micro and macro variables. The study utilizes panel data runs over 1996–2011 with unbalanced observations for 16 banks, of which 4 Islamic banks. In order to achieve research objectives, the two-stage approach is adopted to examine the factors that may influence the behaviour of discretionary loan/finance loss provisions with specific emphasize on the efficiency. Furthermore, efficiency scores are estimated using Data Envelopment Windows Analysis. The findings of the research show that Islamic banks employ the discretionary loans/finance loss provisions to manage their earnings. However, the magnitude of discretion of accruals is significantly lower than conventional banks with exception for foreign banks which have reported lower discretionary loans/finance loss provisions than Islamic banks. Moreover, the analysis showed that efficiency affects the overall discretionary loans/finance loss provision positively, although this impact is shaped differently for Islamic and conventional banks.
... notification to the Banks and the Bank System's Office of Finance of the categories of information that it will... FEDERAL HOUSING FINANCE AGENCY [No. 2013-N-16] 12 CFR Part 1260 Information To Be Distributed to the Federal Home Loan Banks and the Office of Finance AGENCY: Federal Housing Finance Agency. ACTION...
Martha Novalina Ambaroita
Full Text Available Loan to Deposit Ratio kredit belum menunjukan optimalisasi sesuai dengan peraturan Bank Indonesia yaitu berkisar 85%-110%. Penelitian ini bertujuan untuk mendiskripsikan DPK, CAR, dan NPL, dan menganalisis bagaimana pengaruh CAR, DPK, NPL, terhadap LDR dalam jangka pendek dan jangka panjang bank umum di Indonesia. Data yang digunakan adalah time series berdasarkan bulanan tahun 2009-2013 yang diperoleh dari Bank Indonesia dan Otoritas jasa keuangan (OJK. Metode analisis yang digunakan adalah Error Corection Model (ECM dan menggunakan uji asumsi klasik. Hasil dalam jangka panjang CAR tidak berpengaruh terhadap LDR, dalam jangka pendek CAR berpengaruh positif terhadap LDR bank umum di Indonesia, dalam jangka panjang DPK berpengaruh positif terhadap LDR dan dalam jangka pendek DPK tidak berpengaruh terhadap LDR bank umum di Indonesia, dalam jangka panjang NPL berpengaruh negatif terhadap LDR dan dalam jangka pendek NPL berpengaruh positif terhadap LDR. Saran untuk DPK diusahakan semaksimal mungkin. Berbagai inovasi terus dimunculkan dan berbagai strategi dimunculkan agar DPK yang efektif dan agar dalam jangka pendek dan jangka panjang dapat lebih maksimal sehingga tidak ada hambatan. Loan to deposit ratio not show that the optimization of credit in accordance with the bank indonesia but range 85 % -110 % . This study attempts to mendiskripsikan dpk , car , and non-performing loans of the , and analyze how the influence of car , dpk , non-performing loans of the , against ldr in the short term and longer term commercial banks in indonesia . The data used was based on time series monthly koni year obtained from bank indonesia and the authority of financial services ( ojk . In the long run this results not affect the ldr, on this positive effect on short-term ldr commercial banks in indonesia; the positive effect on long-term deposits ldr in short-term deposits do not affect the ldr commercial banks in indonesia; in its negative effects towards long
This study examined the determinants of the Nigeria Agricultural Cooperative and Rural Development Bank (NACRDB) repayment by farmers in Yewa division of Ogun State. Primary data collected through scheduled interview with the help of a structured questionnaire as well as secondary data were used for this purpose.
Full Text Available Non-Performing Loans (NPLs are representing nowadays one of the main challenges for the banking systems all over the world. Therefore, a sustainable decision-making process should be implemented, for minimizing the effects of credit risk. The current paper uses a dynamic panel regression model to present the determinants of NPLs for the largest five banks of the Romanian Banking System during 2007-2016. A Generalized Method of Moments (GMM regression is used and defined under three different types of variables: bank specific indicators, macroeconomic indicators and qualitative variables. Other studies illustrated also the determinants of NPLs in various banking systems from all around the world, such as Japan, China or several CEE countries (especially the emergent ones. After an in-depth analysis of the literature and Romanian market, the following variables were found to be relevant and were introduced into a dynamic data panel model: unemployment rate, annual average growth rate of gross domestic product, return on equity (ROE, loan to deposit ratio (LTD. The existing literature presents ROE as having a negative impact on NPLs, unemployment rate being positive correlated with NPLs and a negative relationship between economic growth and such loans. Our contribution to the current literature is represented by the introduction of two additional qualitative variables (Board Risk Management Ratio (BRMR, as the proportion of risk managers within the Board of Directors of each bank in question and the Expert Aggregate Priority Vector (EAPV, as the aggregated perceived risk regarding the NPLs. The decision of introducing these variables relies on previous research made in this area, results being validated by experts from the Romanian Banking System, according to the BASEL III and NBR criteria. The results of the current paper are consistent with the existent literature, the correlations and impact of the variables being relevant for the subject
Eisenberg-Guyot, Jerzy; Firth, Caislin; Klawitter, Marieka; Hajat, Anjum
The fringe banking industry, including payday lenders and check cashers, was nearly nonexistent three decades ago. Today it generates tens of billions of dollars in annual revenue. The industry's growth accelerated in the 1980s with financial deregulation and the working class's declining resources. With Current Population Survey data, we used propensity score matching to investigate the relationship between fringe loan use, unbanked status, and self-rated health, hypothesizing that the material and stress effects of exposure to these financial services would be harmful to health. We found that fringe loan use was associated with 38 percent higher prevalence of poor or fair health, while being unbanked (not having one's own bank account) was associated with 17 percent higher prevalence. Although a variety of policies could mitigate the health consequences of these exposures, expanding social welfare programs and labor protections would address the root causes of the use of fringe services and advance health equity.
Full Text Available Bad loans are essentially loans with arrears of 90 days or more, and the criterion of 90 days is the most common practice in different countries to determine indicators on the bad in lending. Credit risk is one of the most important financial risks facing the banking system is assumed by all credit institutions and may cause serious problems so that bank and the whole system if risk exposure is substantial. From this point of view, the most important function of bank management is to control the quality of the loan portfolio. This is because the poor quality of loans is the leading cause of bankruptcy. In accordance with the central bank, credit institutions are obliged to protect the bank's capital and the deposits of individuals and legal entities and to cover any loans that present uncertainties in recovery, to determine and utilize prudential value adjustments. The central bank aims NPL development using aggregated indicators on credit institutions. Conclusions are presented on developments and trends in non-performing loans in the portfolio of credit institutions in Romania.
Sumarti, Novriana; Hasmi, Abrari Noor
A dynamical model, which is one of sophisticated techniques using mathematical equations, can determine the observed state, for example bank profits, for all future times based on the current state. It will also show small changes in the state of the system create either small or big changes in the future depending on the model. In this research we develop a dynamical system of the form: d/D d t =f (D ,L ,rD,rL,r ), d/L d t =g (D ,L ,rD,rL,r ), Here D and rD are the volume of deposit and its rate, L and rL are the volume of loan and its rate, and r is the interbank market rate. There are parameters required in this model which give connections between two variables or between two derivative functions. In this paper we simulate the model for several parameters values. We do bifurcation analysis on the dynamics of the system in order to identify the appropriate parameters that control the stability behaviour of the system. The result shows that the system will have a limit cycle for small value of interest rate of loan, so the deposit and loan volumes are fluctuating and oscillating extremely. If the interest rate of loan is too high, the loan volume will be decreasing and vanish and the system will converge to its carrying capacity.
Full Text Available Penelitian ini bertujuan untuk mengetahui pengaruh CAR(CAR dan Non-Performing Loan (NPL terhadap Kinerja Keuangan Bank Umum Konvensional Periode 2013 – 2015. Penelitian ini menggunakan teknik non-probability sampling dan metode purposive sampling. Pengumpulan data menggunakan data sekunder, yaitu dengan mengambil data dari laporan tahunan masing-masing website bank umum konvensional. Populasi terjangkau dalam penelitian ini adalah Bank Umum Konvensional yang berjumlah 43 bank dengan sampel 39 bank. Teknik analisis data yang digunakan adalah uji normalitas, uji asumsi klasik, dan uji hipotesis. Berdasarkan hasil analisis data diketahui bahwa ada pengaruh positif antara CAR(CAR dengan Kinerja Keuangan, sedangkannon-performing loan berpengaruh negatif terhadap Kinerja Keuangan. Secara simultan terdapat pengaruh antara CARdan Non-Performing Loan terhadap Kinerja Keuangan.
Prof. R.W Gakure
Full Text Available Financial risk in a banking organization is possibility that the outcome of an action or event could bring up adverse impacts. Such outcomes could either result in a direct loss of earnings / capital or may result in imposition of constraints on bank’s ability to meet its business objectives. The purpose of this study was to investigate the effect of credit risk management techniques on the performance of unsecured bank loans by commercial banks in Kenya.
Ortiz Gracia, Luis
In this dissertation we have investigated the credit risk measurement of a credit portfolio by means of the wavelets theory. Banks became subject to regulatory capital requirements under Basel Accords and also to the supervisory review process of capital adequacy, this is the economic capital. Concentration risks in credit portfolios arise from an unequal distribution of loans to single borrowers (name concentration) or different industry or regional sectors (sector concentration) an...
Muthia Roza Linda
Full Text Available This study aimed to get empirical evidence of the effects of inflation, exchange rate, and interest rates on non-performing loans At the State Savings Bank (Persero Tbk Branch Padang. In this research used observation period ranging from 2008 - 2013. Data used is secondary data obtained from the financial statements of the State Savings Bank (Persero Tbk Branch Padang. For testing the hypothesis used multiple linear regression model to see the value of t-statistic. Based on the results of hypothesis testing found that inflation, and interest rates are individually significant effect on non-performing loans at the State Savings Bank (Persero Branch Padang, whereas no significant effect on the rate of non-performing loans at the State Savings Bank (Persero Branch Padang ,
Kadir, Norhidayah A.; Sarudin, Ezzah Suraya; Hamid, Fairus; Shamsuddin, Nor Diyana Ahmad
There are various thoughts and opinions when it comes to how people think of their selected banks. Therefore, to choose the best bank with a good personal loan package can be a bit tricky especially for first time customer. This research offers a guide in choosing the right bank for applying personal loan package by highlighting the important criteria that applicants should take into consideration. In order to cater the problem above, we used Consistent Fuzzy Preference Relations (CFPR). Based on expert and public opinions, the important criteria in selecting an Islamic personal loan package are interest rate, tenure of loan, processing period and security of the loan. We developed questionnaire with the criteria mention earlier and distributed it among academic staffs and non academic staffs at Faculty of Computer and Mathematical Sciences (FSKM), UiTM Shah Alam. Based on the questionnaire, we found that four banks have been selected for multiple reasons. Before we could determine the best bank, calculations are divided into 2 phases which are criteria weights determination and ranking of alternatives. We implemented these phases to get the aggregation result and to obtain the ranking in descending order. As a result, our objectives have been achieved. As a conclusion, CFPR can help others in the decision making process.
Muhammad Samsul Maryandi
Full Text Available This research aims at finding out the effect of bank internal factor towards Non-Performing Loan (NPL. The internal factors of bank used in this study cover credit expansion level, operational efficiency level, credit interest level, and the percentage of credit with problems in the previous period as dynamic effect. The research was very important to conduct considering in some recent periods, the ratio of NPL owned by the bank group tend to show an increase. If compared to some previous research (especially the research that took the study case in Indonesia, this study had some strengths such as the sample used was relatively bigger in number (used 97 banks as sample during quarterly period II of 2013 until quarterly period II of 2015 and the use of Generalized Method of Moment Model to analyze the effect of bank internal factor towards NPL. Based on the analysis result of Generalized Method of Moment, it could be concluded that the level of credit expansion, operational efficiency, credit interest and the percentage of credit with problems in one previous period individually gave positive effect towards NPL. Meanwhile, the percentage of credit with problems in two previous periods gave negative effect towards NPL.
Irina K. Pavlova
Full Text Available The article analyzes new Russian archival materials related to the activities of the Loan and Account Bank of Persia from the late nineteenth century to the early twentieth century. The article illustrates how the Bank through its various activities, turned into one of the main agents of Russian state interest in Persia during that period. The performance of the Bank has been elucidated in the works of Russian and foreign researchers encompassing various aspects of the Bank’s activities. This article, however, is based on the previously unused materials from the Russian State Historical Archive (RGIA, St. Petersburg and the Archive of Foreign Policy of the Russian Empire (AVPRI, Moscow. Among the new materials introduced and employed in this article, two documents are of an exceptional importance: “Case of rewarding Persian subjects with Russian orders and medals” and “Case of purchasing a movie theatre”. These documents confirm that the Bank’s works in Persian were multi-faceted. Many merchants were involved in commercial relations with the Bank. At the same time, some of them were informants of the Bank and helped the Russians to monitor the situation in Persia. On avenue used by the Board in order to maintain amiable relationships with Shah and His immediate circle was to bestow fascinating gifts on them.
Jiminez, G.; Ongena, S.; Saurina, J.
We investigate the impact of the stance and path of monetary policy on the level of credit risk of individual bank loans and on lending standards. We employ the Credit Register of the Bank of Spain that contains detailed monthly information on virtually all loans granted by all credit institutions
Full Text Available Introduction. The active development of integration processes causes the necessity of applying high-level approaches to management of the banking system, which is an essential part of the financial sector. Due to the importance of credit operations in the portfolio of banking assets, development of efficient and flexible credit management system is the basis for financial and market stability of banks. Purpose. Analyze the condition of the credit portfolio of banking institutions under the influence of economic processes and make conclusions and recommendations about the effectiveness of managing the bank’s credit portfolio and generalize ways of improving the structure and quality of the bank’s credit portfolio. Results. Over the last six years, the quality of the credit portfolio has become worse because of the bad debts growing and, as a result, decreasing in revenues. The calculated coefficient of management efficiency of a credit portfolio shows the dependence of this indicator on the value of risk and yield. In order to confirm the dependence and determine the degree of influence of these indicators on the efficiency of management of a loan portfolio, an economic-mathematical model was constructed on the example of both individual banks and the banking system as a whole. Detected dependence of factors is quite logical, therefore, the model can be recommended for practical use. Conclusion. Using this method of determining the management efficiency of a credit portfolio will allow the management of the bank to make reasonable decisions. It will allow the possibility of forming a more justified credit portfolio, taking into account not only the profitability, but also the real level of risk of credit operations.
that deposits from provincial, regional, local and municipal authorities are included in the definition of deposit – provided that they fulfill the other requirements in the definition, i.e. that they come up to the definition “any credit balance which results from funds left in an account or from temporary...... situations deriving from normal banking transactions …”. It further concludes that fixed term deposits – i.e.: loans – to banks by e.g. provincial, regional, local and/or municipal authorities come under the definition of deposit in Article 1(1) of the Directive, because it is a credit balance ‘which results...... from funds left in an account’. It finally concludes that it makes no difference when interpreting the definition ‘deposit’ in the sense of Article 1(1) of the Directive where the de-posits were made directly by the depositor/investor, or indirectly through an agent who had screened the market for bank...
... American Bank Allentown Pennsylvania Iron Workers Bank Aston Pennsylvania National Penn Bank Boyertown... Citizens Bank and Trust Frostproof Florida Columbia Bank Lake City Florida Pacific National Bank Miami... Bank Honor Michigan First National Bank & Trust Company of Iron Mountain Michigan Iron Mountain...
... Savings Bank Kearny New Jersey. Metuchen Savings Bank Metuchen New Jersey. Boiling Springs Savings Bank... Bank Silver Spring Maryland. AmericasBank Towson Maryland. Hamilton Federal Bank Baltimore Maryland... Ohio. Association of Delaware. The Mechanics Savings Bank Mansfield Ohio. First FS&LA of Newark Newark...
... Federal Credit Union.... Fort Wayne Indiana. Alliance Bank Francesville Indiana. The Friendship State Bank Friendship Indiana. Goshen Community Bank Goshen Indiana. Indiana Business Bank Indianapolis Indiana.... First Star Bank, SSB Bremond Texas. The Bank and Trust of Bryan/College Bryan Texas. Station. First Bank...
............ Massachusetts. Company. Danversbank Danvers........ Massachusetts. Mechanics' Co-operative Bank. Taunton... Savings, FSB........ Munster........ Indiana. Farmers and Mechanics Federal Bloomfield..... Indiana...Texas Bank, SSB......... Cuero Texas. Alliance Bank Sulphur Springs Texas. Angelina Savings Bank, FSB...
... Community Bank Toms River New Jersey. Paragon Federal Credit Union Township of Walls New Jersey. Highlands... Foundation Bank Irvine California. Pacific Enterprise Bank Irvine California. Plaza Bank Irvine California.... Jordan Federal Credit Union Sandy Utah. Foundation Bank Bellevue Washington. Business Bank of Skagit...
Nicoleta Georgeta PANAIT
Full Text Available The introduction of a harmonized framework for financial supervision allows the minimizing of tax consequences and possible systemic bank failures. Banking union project will have impact on both the micro-prudential supervisory practices and the prudential supervision framework in the euro area and in the state members that will decide to participate in this project. The non-performing loans (NPL trend in the countries of Southeastern Europe further shows that nonperforming loans will increase in some of the states of Eastern Europe affecting credit flows and profits made by the banks. The activities conducted by the banks cannot be estimated, quantified and especially eliminate all risk, lending generates NPL even lending procedures were followed in accordance with the laws and regulations in force. Romania has the highest rate of non-performing loans in the region and the fact is generated because of difficulties in removing non performing loans from banks' balance sheets. In order to increase the volume of loans it is necessary to decrease of nonperforming loans from banks' balance sheets. To identify the optimal strategy for managing non-performing loans is necessary to continually monitor the performance and providing rapid adaptation to the dynamic environmental factors and changes in the characteristics of the loan portfolio. European Central Bank will consistently enforce a set of unique rules apply to the group of euro area credit institutions will directly supervise credit large institutions and will monitor supervisory practices of credit institutions less significant conducted by competent national authorities.
Mariana G. NEDELCU (BUNEA)
In the context of economic and financial crisis triggered in EU by autumn 2008, Romania's banking system like that in the other European countries, faced with the consequences of decreasing the standard of living the worsening of purchasing power (in terms of retail) and with gaps and Delay occurred in the payment of corporate clients. However the deteriorating the quality of bank investments, increasing non-performing loans in bank portfolios totate ultimately causing the accumulation of...
... Iowa. Blue Grass Savings Bank Blue Grass Iowa. First Federal Credit Union Cedar Rapids Iowa. Exchange... Jacksonville Arkansas. Heritage Bank, National Association Jonesboro Arkansas. First Delta Bank Marked Tree... Bartley Bartley Nebraska. Pathway Bank Cairo Nebraska. Cedar Rapids State Bank Cedar Rapids Nebraska...
... Massachusetts. St. Mary's Bank Manchester New Hampshire. Community Guaranty Savings Bank Plymouth New Hampshire.... Tompkinsville Kentucky. United Southern Bank Trenton Kentucky. Citizens Deposit Bank & Trust Vanceburg Kentucky... Gladstone Michigan. United Bank of Michigan Grand Rapids Michigan. Lansing Automakers Federal Credit Union...
..., National Association........ Arlington Massachusetts. Medical Area Federal Credit Union........ Brookline... Bank of Ashville Ashville Ohio. Century Federal Credit Union Cleveland Ohio. The Pioneer Savings Bank...
Rogerio de Deus Oliveira
Full Text Available Credit Risk is an important dimension to be considered in the risk management procedures of financial institutions. Is a particularly useful in emerging markets where default rates on bank loan products are usually high. It is usually calculated through highly costly Monte Carlo simulations which consider different stochastic factors driving the uncertainly associated to the borrowers liabilities. In this paper, under some restrictions, we drive closed form formulas for the probability distributions of default rates of bank loans products involving a big number of clients. This allows us to quickly obtain the credit risk of such products. Moreover, using these probability distributions, we solve the problem of optimal portfolio allocation under default risk.
... 12 Banks and Banking 7 2010-01-01 2010-01-01 false Enterprise portfolio holding criteria. 1252.1 Section 1252.1 Banks and Banking FEDERAL HOUSING FINANCE AGENCY ENTERPRISES PORTFOLIO HOLDINGS § 1252.1 Enterprise portfolio holding criteria. The Enterprises are required to comply with the portfolio holdings...
... 12 Banks and Banking 6 2010-01-01 2010-01-01 false Risk portfolios defined. 702.104 Section 702.104 Banks and Banking NATIONAL CREDIT UNION ADMINISTRATION REGULATIONS AFFECTING CREDIT UNIONS PROMPT CORRECTIVE ACTION Net Worth Classification § 702.104 Risk portfolios defined. A risk portfolio is a portfolio...
Emanuelle Frasson Guimarães
Full Text Available The Índice de Sustentabilidade Empresarial (ISE, created by BM&FBOVESPA in 2005, looks for encourage sustainable practicesand identify companies considered socially and environmentally responsible. The aim of this studyis to compare accounting and financial indicators of banks participating and non-participating portfolio ISE2014, 2015 and 2016 to verify whether the participation influences financial performance. Through the application process of descriptive statistics and of non-parametric Mann-Whitney test, it was not possible to verifythat participation in the ISEimproves the financial performance of banks in a lot ofaspects and has proved that there are no differences between the groups of banks participating and nonparticipating porfolio ISE. In addition, non-participating banks showed better results in profitability ratios. It was identify in the study about the presence of Positive Accounting Theory of Watts and Zimmerman (1986, which defines the size as a factor for political attention.
Xianyi, Chen; Liying, Wang; Jiming, Cai; Xiaonong, Zhou; Jiang, Zheng; Jiagang, Guo; Xiaohua, Wu; Engels, D.; Minggang, Chen
China has been carrying out large-scale schistosomiasis control since the mid-1950s, but in the early 1990s, schistosomiasis was still endemic in eight provinces. A World Bank Loan Project enabled further significant progress to be made during the period 1992-2001. The control strategy was focused on the large-scale use of chemotherapy -- primarily to reinforce morbidity control -- while at the same time acting on transmission with the ultimate goal of interrupting it. Chemotherapy was complemented by health education, chemical control of snails and environmental modification where appropriate. A final evaluation in 2002 showed that infection rates in humans and livestock had decreased by 55% and 50%, respectively. The number of acute infections and of individuals with advanced disease had also significantly decreased. Although snail infection rates continued to fluctuate at a low level, the densities of infected snails had decreased by more than 75% in all endemic areas. The original objectives of the China World Bank Loan Project for schistosomiasis control had all been met. One province, Zhejiang, had already fulfilled the criteria for elimination of schistosomiasis by 1995. The project was therefore a success and has provided China with a sound basis for further control. PMID:15682248
Full Text Available In the credit relations, on the current monetary exchange value against a future monetary values, it take into account the source cost and all amounts that are added to the price formation. The credit price, paid by the customers, cover all the risks caused by inflation and other factors that eroding bank capital. In banking flows credit relations are the support of exchange a current values against a future monetary values. Banking businesses have a specific price called interest or fee. By the price of credit, which is payable by the customer, bank shall cover all risks arising from inflation and other factors that eroded bank capital.
L. N. Sotnikova
Full Text Available The features and current trends in the development of the banking system of the Russian Federation are highlighted in the article. The authors propose an original method of evaluation of activities of credit organizations with the use of statistical data and rating agencies. The concept of the banking system is summarized in this article. Also its structure is analyzed by the number of credit institutions and the quality of their operations. The authors identifie differences between the concepts of banking service, banking operation and banking product and propose classification according to different characteristics of banking institutions and operations that they carry out. Then the authors go to estimating the volume of banking services in Russia and their patterns in total. Separately the main passive (deposits and loans and active operations (lending to legal entities and individuals are characterized. The authors identifie the major developments in the banking system of the Russian Federation in 2014 due to political and economic sanctions by the U.S. and Eurozone countries. The article provides a vision of the authors on the further development of the banking activity in Russia and proposes specific measures to adapt the banking system of the Russian Federation in a constantly changing political and economic conditions (financial sanctions, a change of key Central Bank rates, devaluation, etc.. According to the authors' opinion the expected prospects of development of the banking system of the Russian Federation to 2015 are: the growth in savings accounts in banks; sanctions will be of a personal nature and will not affect the largest credit institutions; the active growth of the corporate loan portfolio will continue; the growth of retail lending portfolio will continue to slow; mortgage lending will increase in the total loan portfolio of the banking sector of Russia.
Alina BRĂTUCU (LUCA
Full Text Available Known as the biggest crises since the Great Depression, the actual global crisis has modified the economical structures of many countries and a vicious circle of tightening credit, has reduced demand and rapid job cuts occurred. In Romania, the situation evolved with rapidity based on a series of snow-ball effects and the economy suffered severe damages in terms of intensive growth and sustainability. The lending activity was seriously damaged and many people got in a difficult situation with no jobs and with higher interest rates on loans.For a better understanding of the economic crisis phenomena consequences in Romania, we will try to emphasize the main implications of the influences of unemployment and medium net wages on the banking activity using a regional econometric model for panel data.
When NUEXCO was organized in 1968, its founders conceived of a business based on uranium loans. The concept was relatively straightforward; those who found themselves with excess supplies of uranium would deposit those excesses in NUEXCO's open-quotes bank,close quotes and those who found themselves temporarily short of uranium could borrow from the bank. The borrower would pay interest based on the quantity of uranium borrowed and the duration of the loan, and the bank would collect the interest, deduct its service fee for arranging the loan, and pay the balance to those whose deposits were borrowed. In fact, the original plan was to call the firm Nuclear Bank Corporation, until it was discovered that using the word open-quotes Bankclose quotes in the name would subject the firm to various US banking regulations. Thus, Nuclear Bank Corporation became Nuclear Exchange Corporation, which was later shortened to NUEXCO. Neither the nuclear fuel market nor NUEXCO's business developed quite as its founders had anticipated. From almost the very beginning, the brokerage of uranium purchases and sales became a more significant activity for NUEXCO than arranging uranium loans. Nevertheless, loan transactions have played an important role in the international nuclear fuel market, requiring the development of special knowledge and commercial techniques
Full Text Available Loan portfolio of Montenegro’s banking sector was largely affected by the growth in past due loans during the current financial crisis. High level of these loans limits banks’ lending activity which results in a decline in credit supply. Negative effects of the non-performing loans’ growth reflected adversely on economic strength of the real and households sectors. Majority of Montenegrin companies have significant liquidity problems and their defaults affect adversely the sound part of the economy, while reduced households spending reflects negatively on aggregate demand.
Full Text Available Introduction. The banking system as a part of the national economy contributes to the development of various branches of economy and trade, enabling the realization of economic interests of economic entities. One of the important tasks of the monetary system is the accumulation of financial resources necessary for the implementation of credit and investment projects and their further distribution. This task is performed by banking institutions by attracting funds from individuals and legal entities. The size of the bank’s resource base and the scale of its operations depend on the operations of attraction of funds. The priority task of the banking institution is the predominance of attracting long-term investments over short-term ones. That is why the problem that exists in the disproportion of the maturity of borrowed funds, the prevalence of short-term deposits over long-term and the minimum amount of long-term resources in the bank’s deposit portfolio is particularly relevant. Purpose. The purpose of the work is to generalize the theoretical aspects of bank deposit activity and to determine the optimal structure of the deposit portfolio for carrying out of credit and investment activity. Results. The article summarizes the essence of the concept of “deposit policy”, identifies the peculiarities of its formation and analyzes the main external and internal factors that have an impact on the deposit policy of domestic banks. The analysis of the dynamics and structure of deposit operations of banks at the state level was carried out and the analysis of deposit policy of a bank of foreign bank groups – PJSC “Ukrsotsbank” for 2010-2017 was provided. In this work, the factors of influence are investigated: external and internal, which determine the ways of formation of deposit policy by banks of Ukraine. The influence of the structure of the deposit portfolio of Ukrainian banks on the formation of the investment resource is analyzed
About a year ago, when new management took over the financial department of Slovenske elektrarne (SE), a.s. the company was in crisis. It faced an acute cash-flow deficit and due loans of over 20 bill. Sk (501.21 mil. Eur). SE could not provide adequate guarantees for the required loans and without state guarantees it was virtually impossible or too expensive to obtain additional loans. But last week the situation changed for the better. Despite the fact that due to the restructuring of SE's loan portfolio, the company will pay the banks 3 bill. Sk (75.18 mil. Eur) less interest over the next three years than under the original arrangements, even the bakers seemed satisfied. A loan portfolio full of non-standard agreements signed with about 30 banks had previously prevented decisions regarding the structure of the company's assets and liabilities.The cabinet refused to admit that SE was in crisis and offered SE for sale, although it could not be privatised due to its debt structure and the fact that it was close to default. Despite this unfavourable situation, company economists decided to make an offensive move -in cooperation with a small group of banks they converted the tens of company loan agreements into a new loan package that will be simpler, cheaper, and with longer maturity periods, which will not require state guarantees. SE managed to restructure debts with a total value of 550 mil. Eur and until these transactions are completed the banks offered SE a bridge loan of 110 mil. Eur. The transaction related to a syndicated loan of 350 mil. Eur which was concluded in April. Eurobonds with a total value of 200 mil. Eur were issued two months later. The banks offered the company more than it requested. Demand for the Eurobond issue exceeded the 200 mil. Eur of bonds on offer. (author)
Dewi Margareth Lumbantoruan
Full Text Available The research objectives were to analyze the condition of the SMEs lending portfolio and a comprehensive strategy to ensure that the SMEs Line of Business could grow sustainably. There are several analytical methods employed in this study, such as Location Quotient (LQ and Klassen Typology methods. The consolidated results of both analyses will be developed as a leading sector. The sectors that will be selected based on the result from the Location Quotient analysis include the sectors in the 4th quadrant and the 1st Quadrant. The analysis showed that 12 economic sectors spread throughout 33 provinces are considered to be the leading sectors, where the Transportation, Financial Intermediaries and Fisheries are the sectors that have the highest distribution in the 4th Quadrant while the Fisheries, Wholesale and Retail, as well as the Agriculture are the sectors which also have a high level of distribution in the 1st quadrant. The sectors that will be chosen based on the results from the Klassen Typology analysis include the sectors in the 1st quadrant. The analysis showed that there are 12 economic sectors spread throughout 31 provinces considered to be developed and fast-growing sectors, where the Agriculture, Fisheries, and Construction are the sectors that have the highest distribution. The consolidated results of the both analyses showed that the leading sectors consist of 10 economic sectors, namely, Agriculture, Fisheries, Processing industry, Social services, Construction, Electricity, Gas and Water, the Provider of accommodation and eating and drinking, Mining, Wholesale and Retail, and Transportation spread throughout 27 provinces. Leading sectors are not the same in every province, although there are certain sectors that excel in several provinces, but there is also one dominant sector that exists only in certain provinces.Keywords: location quotient, klassen typology, leading sector, SMEs, portfolioABSTRAKPenelitian ini bertujuan
This paper examines ways of overcoming inconsistencies between IFRS and modern concepts of credit risk management, namely, expected loss model and risk-adjusted loan pricing. Also, it is considered an issue of acceptable levels of concentration risk in bank credit portfolio.
Carlos Manuel Díaz
Full Text Available The objective of this research was to analyze the financial risk in the consumption credits of the banking system of Venezuela between 2008-2015. The theoretical support was made based on Cóndor & Cajamarca (2014, monitoring credit risk is essential to preserve the stability of the financial system. The type of research was descriptive with a longitudinal trend design. Consumer loans accounted for 21% of the banking economy; these loans grew at an annual average of 17%, the delinquency and total portfolio coverage indicators showed a downward trend. This shows that the profile of potential borrowers by banks has been successful.
Wirjodirdjo, B.; Asjari, H. Y.
The Indonesian economic indicators shown a positive progress in the last three years, Foreign exchange reserves position of the end of March 2017 stood at US 121.8 billion higher than the position of the end of 2015 amounted to US 105.9 billion of the end of 2015. This reserve would ensure the resilience and maintaining sustainable Indonesian economic growth in the future. Although Indonesia’s foreign exchange is better, the structure of expenditure in the country is still less than ideal due the proportion of spending of consumer goods is far greater than the capital goods and tend to be unproductive spending. This needs to be regulated so that in the long term does not cause balance of payments deficit. Therefore, Indonesian Central Bank took a policy to raise interest rates for retail banks from 6% to 7.25% per annum gradually up to present. Policies relating to the interest rates on loans are intended to reduce the proportion of debt financing of consumer goods, however, these policies have implications to various economic sectors and one of those is property sector. A lot of research has been conducted related the impact of loan interest to the property sector but most of it is still in partial related to the ability the people to buy. However, this research has tried to see the implication of the macro Economic Policy of Indonesian Central Bank to the property sector as a systemic problem. This paper is going to present the study on the effects of these policies on the property sector, especially residence house. To obtain a comprehensive analysis and capture the relationship between interest rate policies and their impacts to the property sector, in this study the model developed and simulated using system dynamic methodology as an approach. Various scenarios are applied to the model to get an accurate information about how and when the effectiveness of the policy related to the property sector can be enforced. The result of this study can be delivered to
... during the fiscal year, multiplied by the historic cost of money rate as of the close of the immediately... the fiscal year. (6) As used in paragraph (c)(5) of this section, the term “historic cost of money...) For this determination, the Bank will use yields on actively traded Treasury issues adjusted to...
... mentioned above, only top-tier foreign banking organizations with financial holding company status file Part... Nonbank Financial Companies Supervised by the Federal Reserve AGENCY: Board of Governors of the Federal... financial companies designated for Board supervision by the Financial Stability Oversight Council (Council...
... (DRM). The data reporting requirements under the Bank housing goals regulation are similar to existing data reporting requirements under the DRM, but the requirements are not identical. Specifically, the DRM provides that data that is required to be reported on a semi-annual basis must be submitted within...
M. Pieterse-Bloem (Mary); W.F.C. Verschoor (Willem); Z. Qian (Zhaowen); R.C.J. Zwinkels (Remco)
textabstractIn this paper, we propose a dynamic portfolio strategy for European corporate bonds based on a two-factor pricing model. We introduce a strategy in which we forecast both future factors as well as bonds' future exposure to these factor. Using a unique dataset that is representative for
Frajtova-Michalikova, Katarina; Spuchľakova, Erika; Misankova, Maria
In this paper Portfolio Optimization techniques were used to determine the most favorable investment portfolio. In particular, stock indices of three companies, namely Microsoft Corporation, Christian Dior Fashion House and Shevron Corporation were evaluated. Using this data the amounts invested in each asset when a portfolio is chosen on the efficient frontier were calculated. In addition, the Portfolio with minimum variance, tangency portfolio and optimal Markowitz portfolio are presented.
Moldavska Olena V.
Full Text Available The article conducts an economic and statistical analysis of the modern state of credit activity of Ukrainian banks and main tendencies of its development. It justifies urgency of the statistical study of credit activity of banks. It offers a complex system of assessment of bank lending at two levels: the level of the banking system and the level of an individual bank. The use of the system analysis allows reflection of interconnection between effectiveness of functioning of the banking system and quality of the credit portfolio. The article considers main aspects of management of quality of the credit portfolio – level of troubled debt and credit risk. The article touches the problem of adequate quantitative assessment of troubled loans in the credit portfolios of banks, since the methodologies of its calculation used by the National Bank of Ukraine and international rating agencies are quite different. The article presents a system of methods of management of credit risk, both theoretically and providing specific examples, in the context of prevention of occurrence of risk situations or elimination of their consequences.
... 12 Banks and Banking 5 2010-01-01 2010-01-01 false Bank. 583.3 Section 583.3 Banks and Banking... AND LOAN HOLDING COMPANIES § 583.3 Bank. The term bank means any national bank, state bank, state-chartered savings bank, cooperative bank, or industrial bank, the deposits of which are insured by the...
Full Text Available The purpose of this paper is to analyse the loss given default (LGD determinants in case of a typical loan portfolio consisting of SME loans in a commercial bank operating in one of the quickly developing banking markets, i.e. in Slovenia. Accurate LGD estimates of defaulted bank claims are important for provisioning reserves for credit losses, calculating adequate risk capital and determining fair pricing risky bank loans. While most of the empirical literature in the field concentrates on corporate bond markets to estimate losses in the event of default, we use a unique individual bank data set on SME loan losses. Due to the proprietary nature of data only few studies of this kind have been published so far and to our knowledge none of them covers the Eastern European banking markets. In the first stage of the analysis we estimate the LGD variable by applying the discounted cash flow approach, while in the second stage we analyse its determinants by using the ordinal regression analysis. Our findings suggest that reliable LGD estimates can be produced by discounting expected loan related future cash flows and that explanatory factors, such as type of collateral, type of industrial sector, last available loan rating, size of the debt and loan maturity satisfactorily explicate variability of the LGD variable in the specific banking market. All the results are not only relevant to the impairment policy determination and capital adequacy calculation in the specific bank, but also to the evaluation of SME loans characteristics in developing markets.
Mariana G. NEDELCU (BUNEA
Full Text Available In the context of economic and financial crisis triggered in EU by autumn 2008, Romania's banking system like that in the other European countries, faced with the consequences of decreasing the standard of living the worsening of purchasing power (in terms of retail and with gaps and Delay occurred in the payment of corporate clients. However the deteriorating the quality of bank investments, increasing non-performing loans in bank portfolios totate ultimately causing the accumulation of excessive risks that banks were exposed. On the background of the crisis, the impact of Basel III is not only a financial regulation that is applicable to the banking industry and will fundamentally determine the profitability of the banking system. Through this study, we propose a series of measures applicable to the credit institutions to mitigate the impact of alignment with the new capital requirements.
.... The Banks continue to operate under regulations promulgated by the Finance Board until such time as... The final regulation relocates rules addressing Bank housing associates from part 926 of the Finance Board regulations to part 1263 of the FHFA regulations; the Banks' core mission activities from part 940...
Full Text Available In banking practice the pledge plays an important role, it is often used to denote the pledge agreement, as well asthe real right that is the result of the pledge agreement conclusion and the good that is the object of the pledge. Thepledge is the only real security interest in the range of bank guarantees. Actually, each obligation can beguaranteed by the pledging. Assets diversification and trade needs have led to the development of a new pledgeform. Anyway, regardless of the number and content of the economic material, the licensed banks from the Republicof Moldova attach importance to the correctness of pledge accounting taking into account the deadline. Thus, thisresearch aims to present the accounting of the pledged assets passed to the licensed banks from the Republic ofMoldova for the repayment of the granted loan, taking into account the enforcement of the obligation secured by thepledge deadline, the right to possession of the pledged asset and not the least of its value. In the research there wasmainly used the method of monographic study applying elements of observation, selection, induction and deduction.
Svetlana Andrianova; Badi H Baltagi; Panicos O Demetriades
African financial deepening is beset by a high rate of loan defaults, which encourages banks to hold liquid assets instead of lending. We put forward a novel theoretical model that captures the salient features of African credit markets which shows that equilibrium with high loan defaults and low lending can arise when contract enforcement institutions are weak, investment opportunities are relatively scarce and information imperfections abound. We provide evidence using a panel of 110 banks ...
... 12 Banks and Banking 6 2010-01-01 2010-01-01 false Loans to participating credit unions. 705.7 Section 705.7 Banks and Banking NATIONAL CREDIT UNION ADMINISTRATION REGULATIONS AFFECTING CREDIT UNIONS COMMUNITY DEVELOPMENT REVOLVING LOAN PROGRAM FOR CREDIT UNIONS § 705.7 Loans to participating credit unions...
... disbursement targets, especially in rural areas, also contributes to loan default. Lack of awareness regarding various fees and charges for loan processing purposes deducted at the outset was also found to be a problem. Bank data shows that despite a large amount of excess liquidity, interest rates charged on loans have ...
Full Text Available Credit risk measurement remains a critical field of top priority in banking finance, directly implicated in the recent global financial crisis. This paper examines the dynamic linkages between credit risk migration due to rating shifts and prevailing macroeconomic conditions, reflected in alternative business cycle states. An innovative empirical methodology applies to bank internal rating data, under different economic scenarios and investigates the implications of credit risk quality shifts for risk rating transition matrices. The empirical findings are useful and critical for banks to align to Basel guidelines in relation to core capital requirements and risk-weighted assets in the underlying loan portfolio.
Full Text Available In this paper, we study the impact of extreme events on the loan portfolios of the Greek banking system. These portfolios are grouped into three separate groups based on the size of the bank to which they belong, in particular, large, medium, and small size. A series of extreme scenarios was performed and the increase in capital requirements was calculated for each scenario based on the standardized and internal ratings approach of the Basel II accord. The results obtained show an increase of credit risk during the crisis periods, and the differentiation of risk depending on the size of the banking organization as well as the added capital that will be needed in order to hedge that risk. The execution of the scenarios aims at studying the effects which may be brought about on the capital of the three representative banks by the appearance of adverse events.
Survey data on factors affecting negotiation of professional fees between Estate Valuers and their clients when the mortgage is financed by bank loan: A case study of mortgage valuations in Ikeja, Lagos State, Nigeria.
Iroham, Chukwuemeka O; Okagbue, Hilary I; Ogunkoya, Olalekan A; Owolabi, James D
In this article, two sets of questionnaires were administered to professionals and clients (commercial banks) on their willingness to negotiate the professional fees charged by the Estate Valuers assuming that the mortgage in valuation was financed by bank loan. A range of fees options were provided. Other factors such as the business environment and mortgage valuation can influence the negotiated fees when the data obtained from the survey data is analyzed.
Survey data on factors affecting negotiation of professional fees between Estate Valuers and their clients when the mortgage is financed by bank loan: A case study of mortgage valuations in Ikeja, Lagos State, Nigeria
Chukwuemeka O. Iroham
Full Text Available In this article, two sets of questionnaires were administered to professionals and clients (commercial banks on their willingness to negotiate the professional fees charged by the Estate Valuers assuming that the mortgage in valuation was financed by bank loan. A range of fees options were provided. Other factors such as the business environment and mortgage valuation can influence the negotiated fees when the data obtained from the survey data is analyzed.
Co-Pierre Georg; Markus Pasche
In New Keynesian as well as in Post Keynesian macroeconomic models, money supply is assumed to be endogenous. The reasons for the endogeneity and the role of the financial sector in the supply process, however, are seen very different. In this paper we explicitly derive the behaviour of the banking sector regarding the supply of loans and the demand for reserves from portfolio and liquidity considerations. As a result, the money multiplier as well as the money base are endogenously determined...
The student loan program run by the Instituto Colombiano de Credito Educativo y Estudios Tecnicos en el Exterior (ICETEX) has three main objectives: to increase the country's supply of highly skilled manpower, to achieve more equality of educational opportunity, and to provide a meaningful source of finance for higher education. An analysis of…
Miller, Damian; Hope, Chris [Cambridge Univ., Judge Inst. of Management Studies, Cambridge (United Kingdom)
The World Bank has sought to advance the diffusion of solar photovoltaic (PV) technology for off-grid applications in the developing world. As these systems are fundamentally different to centralised power stations and conventional rural electrification, the World Bank has been learning how best to lend for such technology. This study seeks to highlight the lessons learnt from the World Bank's first loans for off-grid PV to India, Indonesia, and Sri Lanka. It uses lifetime cost analysis to justify continued intervention in this sector, and it draws on theories of innovation diffusion to guide analysis and ultimately policy recommendations. Because of the special role of entrepreneurial start up companies in the rural PV sector, the paper also uses a company cash flow model to demonstrate the efficacy of various supply-side policies. Finally, the study concludes with a checklist of policy lessons and a consideration of the role of the International Finance Corporation in this sector. (Author)
Takipteki Kredi Oranını Etkileyen Faktörlerin Belirlenmesi: Mevduat Bankaları Üzerinde Bir Dinamik Panel Veri Uygulaması (Assessing the Factors that Impact Non-Performing Loan Ratio: An Application On Deposit Banks By Using Dynamic Panel Data
Full Text Available This study aims to determine the factors that are effective on non-performing loans ratio after the 2001 local financial crisis. State-owned banks, privately-owned banks and foreign banks that operate in Turkey between the years 2002 and 2014 are examined. According to System-GMM and Difference GMM results, lagged value of non-performing loans, net interest margin, capital adequacy and solvency ratio have negative effects on non-performing loans ratio. On the other hand, interest applied to loans, loans/ deposits ratio, inefficiency and operating efficiency have positive effects on non performing loans. Although the results are consistent with moral hazard and bad managemet hypothesis, they are inconsistent with diversification hypothesis
Clarke, Ann Højbjerg; Freytag, Per Vagn; Zolkiewski, Judith
Purpose The purpose of this paper is to extend the discussion about customer portfolios beyond simple identification of models and how they can be used for balanced resource allocation to a discussion about how portfolios should take into account views from relationship partners and how they should...... be aligned in internal as well as a relational context. Design/methodology/approach The portfolio literature is reviewed (most recent, seminal, IMP related) and considered in the context of both the sales organization and the customers involved in the portfolio. A conceptual framework is introduced...... that helps improve the understanding of how customer portfolio models can actually be applied from a relational perspective. Findings The key aspects of the conceptual framework relate to how alignment of the relationships in the portfolio is achieved. Critical to this are the interaction spaces...
... not later than December 12, 2011. A. Federal Reserve Bank of Cleveland (Nadine Wallman, Vice President..., all of New Albany, Ohio; Robert E. Hoeweler IRA, Paula Hoeweler IRA, and Robert E. and Paula L...
ALINA LIGIA DUMITRESCU
Full Text Available The banking union has been seen as "a panacea" for solving the system risks of the EU banking system. This paper objectives are to find out if is the banking union, with is strong and week sides, will be right answer to solve the actual issues that EU banking system has as: the fragmentation in the EU single market, the deterioration in asset quality, the need for recapitalization and the quality of banks’ loan portfolios. According with most of the experts the banking union will strength the process of economic integration. On the other side, the non-euro area member states are questioning about "equal rights and obligations for all Member States" inside the banking union. But, with all pros and cons of the banking union, the ECB's making decisions and tasks can be questioned, although its role of supervisor can not be disputed. The most important thing is that the banking union breaks the vicious circle between banks and sovereign debts, and ends "to big to fail"
Full Text Available The last decade has witnessed the development of a vast literature devoted to the study of several phenomena like banking crises or episodes of vulnerability and distress, characterized by inadequate capitalization, impairment of the asset quality and of the credit institutions' rating. The purpose of this study is to design an early warning system in order to highlight at an earlier stage the likelihood of deterioration of the Romanian banking system credit portfolio's quality. We have applied an econometric model which constitutes a reference for this type of analysis, having as purpose the identification of a significant correlation between increasing weight of bad loans in total assets, on the one hand, and a number of macroeconomic variables and indicators of the banking system, on the other hand.
Pedersen, Christian Fischer
The present teaching portfolio has been submitted for evaluation in partial fulfillment of the requirements of the teacher training programme for Assistant Professors at Department of Engineering, Aarhus University, Denmark.......The present teaching portfolio has been submitted for evaluation in partial fulfillment of the requirements of the teacher training programme for Assistant Professors at Department of Engineering, Aarhus University, Denmark....
Dagavarian, Debra A.
The portfolio assessment process at Thomas A. Edison State College is described in this report. Through portfolio assessment, the school helps students identify and gain credit for college-level skills and knowledge acquired through work, volunteer activities, independent reading, military or corporate training, and life experiences that may be…
The thaw period was a kind of bank from which our country set sail towards unexplored horizons. The series on the Moscow Palace of Young Pioneers is continued by the article by Felix Novikov (144-151, who writes about the history of the design of this wonderful building, today’s monument of architecture of Soviet modernism.
European Market, i.e. to look for new revenue sources, to reduce costs and improve their loan portfolios. The comparison of selected aspects of the Polish banking sector in the most developed EU Member States shows that the differences are still too large. Therefore, it seems correct to claim that the Polish banking system is undergoing another transition. It is adjustment to the Single European Market.
Duncan, Sharon L.
Enterprise Business Information Services Division (EBIS) supports the Laboratory and its functions through the implementation and support of business information systems on behalf of its business community. EBIS Five Strategic Focus Areas: (1) Improve project estimating, planning and delivery capability (2) Improve maintainability and sustainability of EBIS Application Portfolio (3) Leap forward in IT Leadership (4) Comprehensive Talent Management (5) Continuous IT Security Program. Portfolio Management is a strategy in which software applications are managed as assets
Full Text Available In this study, inspired by the Credit Portfolio View approach, we intend to develop an econometric credit risk model to estimate credit loss distributions of Turkish Banking System under baseline and stress macro scenarios, by substituting default rates with non-performing loan (NPL ratios. Since customer number based historical default rates are not available for the whole Turkish banking system’s credit portfolio, we used NPL ratios as dependent variable instead of default rates, a common practice for many countries where historical default rates are not available. Although, there are many problems in using NPL ratios as default rates such as underestimating portfolio losses as a result of totally non-homogeneous total credit portfolios and transferring non-performing loans to asset management companies from banks’ balance sheets, our aim is to underline and limit some ignored problems using accounting based NPL ratios as default rates in macroeconomic credit risk modeling. Developed models confirm the strong statistical relationship between systematic component of credit risk and macroeconomic variables in Turkey. Stress test results also are compatible with the past experiences
Full Text Available A number of reasons have been advanced in order to explain why banks began to expand worldwide. There were several aspects that were aimed such as the client-bank relationship, the need for people to cooperate with these institutions and financial intermediaries in the host country. Mergers seek to improve the revenue derived from services performed later, but the increase is offset by personnel costs increase, while acquisitions are observed in order to restructure the acquired bank's loan portfolio and on the application of the improved lending policies that lead to higher profits. These things were best observed during the current crisis period. Regardless of the negative effects of the crisis, there were some banks which were not impacted. The large banking groups merged and by this means they managed to gain the power to dominate and control the entire activity of the field.
Usher, E.; Touhami, M.
This article reports on the UN Environment Programme's (UNEP's) work in supporting the banking and financing sector by creating clean energy finance markets in developing countries. Details are given of the shifting of cash markets to credit, financing solar home systems in India, solar thermal lending in Tunisia, the financing of hotel based solar water heating in Morocco, and the Green Village Credit initiatives in the Yunnan province of China. The importance of providing banks with information needed to gain awareness and experience of renewable energy systems is stressed. The fundamentals of a bank engagement programme, financial catalysts, structuring market oriented approaches, and linking bank lending to policy making are discussed along with the need to shift to credit enhancements to help banks set up their first loan portfolios
Full Text Available The value of the debt concerning both home and consumer loans is described. The quality of the credit portfolio of households and the indicator of burdening their profits with credit are also presented. During the discussed period a certain acceleration in the lending growth, as for as households are concerned, is observed. The increased borrowing burden ratio falling on households’ income at disposal is a worrying phenomenon. This fact alongside with the negative economic effects in the period of the present global financial crisis may contribute to tightening the lending policies of banks, as well as limit the households’ access to credits in order to finance their needs.
Hu, Yi; Xiong, Chenglong; Zhang, Zhijie; Luo, Can; Ward, Michael; Gao, Jie; Zhang, Lijuan; Jiang, Qingwu
The 10-year (1992-2001) World Bank Loan Project (WBLP) contributed greatly to schistosomiasis control in China. However, the re-emergence of schistosomiasis in recent years challenged the long-term progress of the WBLP strategy. In order to gain insight in the long-term progress of the WBLP, the spatial pattern of the epidemic was investigated in the Yangtze River Valley between 1999-2001 and 2007-2008. Two spatial cluster methods were jointly used to identify spatial clusters of cases. The magnitude and number of clusters varied during 1999-2001. It was found that prevalence of schistosomiasis had been greatly reduced and maintained at a low level during 2007-2008, with little change. Besides, spatial clusters most frequently occurred within 16 counties in the Dongting Lake region and within 5 counties in the Poyang Lake region. These findings precisely pointed out the prior places for future public health planning and resource allocation of schistosomiasis. Copyright © 2014 Elsevier Ireland Ltd. All rights reserved.
... 12 Banks and Banking 1 2010-01-01 2010-01-01 false Monthly Home Loan Activity Format I Appendix I to Part 27 Banks and Banking COMPTROLLER OF THE CURRENCY, DEPARTMENT OF THE TREASURY FAIR HOUSING HOME LOAN DATA SYSTEM Pt. 27, App. I Appendix I to Part 27—Monthly Home Loan Activity Format EC22SE91...
... and Conditions § 614.4233 International loans. Term loans made by banks for cooperatives and... conditions: (a) The loan shall be denominated in a currency to eliminate foreign exchange risk on repayment... borrower has had a longstanding successful business relationship with an eligible cooperative borrower or...
Cerqueiro, G.M.; Degryse, H.A.; Ongena, S.
Loan rates for seemingly identical borrowers often exhibit substantial dispersion. This paper investigates the determinants of the dispersion in interest rates on loans granted by banks to small and medium sized enterprises. We associate this dispersion with the loan officers’ use of “discretion” in
A constant rebalanced portfolio is an asset allocation algorithm which keeps the same distribution of wealth among a set of assets along a period of time. Recently, there has been work on on-line portfolio selection algorithms which are competitive with the best constant rebalanced portfolio determined in hindsight (Cover, 1991; Helmbold et al., 1996; Cover and Ordentlich, 1996). By their nature, these algorithms employ the assumption that high returns can be achieved using a fixed asset allocation strategy. However, stock markets are far from being stationary and in many cases the wealth achieved by a constant rebalanced portfolio is much smaller than the wealth achieved by an ad hoc investment strategy that adapts to changes in the market. In this paper we present an efficient portfolio selection algorithm that is able to track a changing market. We also describe a simple extension of the algorithm for the case of a general transaction cost, including the transactions cost models recently investigated in (Blum and Kalai, 1997). We provide a simple analysis of the competitiveness of the algorithm and check its performance on real stock data from the New York Stock Exchange accumulated during a 22-year period. On this data, our algorithm outperforms all the algorithms referenced above, with and without transaction costs.
Full Text Available The article examines the strategic management of credit operations as the activities on credit strategies of banking institutions, the formation of goals, objectives, and the choice of methods to achieve them. The basis of this is the strategic management analysis of the factors affecting the lending operations, strategic planning, communication mechanisms of strategic and tactical decisions, monitoring the implementation of the strategy and timely adjustments. For the purpose of effective implementation of the developed strategy, the article argues that banks in modern conditions should develop their own internal credit policy which should cover the essential elements and principles of credit at these banks. The study determines that the credit policy is based on the factors determined by the amount of capital assets and loan portfolio, the structure of its clientele, specialization, location, presence of branch network, the situation in the money market.
Full Text Available This research has the aim to analyze the factors which give impact in ratio of NPL (Non Performing Loan in XYZ Bank Jakarta. NPL can be caused by the internal factors such as policies, human capitals, etc., and can be caused by external factors through macro-economic changes such as loan-outstanding, BI rate, and foreign exchange (Indonesia Rupiah to US Dollar. This research is a descriptive research with direct approach to the primary and secondary data. The analysis method was using the multiple linear regression method with data time series from June 2008 to June 2014. The multiple linear regression method was used to see the impacts of volume of loan-outstanding, BI rate, and foreign exchange to NPL ratio, and testing differences between level of NPL before and after the separation of RM (Relationship Manager and CA (Credit Analyst function in Bank XYZ Jakarta. All of data processing steps in this research use software Eviews Version 6.0. The result of this research are Loan-outstanding or number of lending, foreign exchange and the dummy of RM and CA separation function have impact to NPL Ratio. The BI-rate change which was happened along the research gives no impact to NPL Ratio. The NPL Ratio is relatively better and it is not affected of the increasing of BI rate. It is not only because of performing loans but also caused by the existing write-off portfolios. Keywords: NPL, loan-outstanding, BI rate, foreign exchange, the separation of RM, credit analystABSTRAKPenelitian ini memiliki tujuan menganalisis faktor-faktor yang mempengaruhi ratio NPL pada Bank XYZ Jakarta. NPL (Non Performing Loan dapat disebabkan oleh faktor internal seperti kebijakan, SDM, dan lainnya ataupun faktor eksternal melalui perubahan faktor makroekonomi, seperti variabel loans outstanding, BI Rate, dan nilai tukar Rupiah terhadap Dollar. Jenis penelitian ini termasuk penelitian deskriptif dengan pengamatan langsung terhadap data sekunder dan data primer
Full Text Available Il perdurare della crisi del debito internazionale ha portato alcuni commentatori a suggerire che i mercati obbligazionari , piuttosto che le banche sarebbero un metodo più adeguato per il finanziamento dello sviluppo del Terzo Mondo . È stato suggerito che il mercato obbligazionario è un meccanismo più appropriato per la valutazione del rischio e per canalizzare fondi per lo sviluppo a lungo termine. Infatti, fino al 1930 , il più del finanziamento dello sviluppo è stato fornito dal mercato obbligazionario , e fu solo il crollo dei mercati dei capitali nel 1930 che imperdì a questa funzione di continuare . Esaminando l'esperienza storica , gli autori considerano il potenziale di finanziamento obbligazionario e le condizioni che sarebbero necessarie per la sua rinascita .The continuing international debt crisis has led some commentators to suggest that bond markets rather than banks would be a more appropriate method of financing development in the Third World. It has been suggested that the bond market is a more appropriate mechanism for assessing risk and channelling long-term development funds. In fact, until the 1930s, most development finance was provided by the bond market, and it was only the collapse of capital markets in the 1930s that stopped this function from continuing. By examining the historical experience, the authors consider the potential for bond financing and the conditions which would be necessary for its revival.JEL: F34, G12, N24
Aalbers, M.B.; Smith, S.J.
This article presents a short historical overview of the different types of lenders that are active in the origination of residential mortgage loans. First, a distinction is made between depository and nondepository lenders. Second, there are two major types of depository lenders: commercial banks,
... to reduce default rate and loan diversions since members can serve as watch dog to each other. Banks should also prevent unnecessary delay in loan disbursement to allow for timely use of the loan. Banks should also explore the Agricultural credit guarantee scheme (ACGS) to offset part of the risk in case of default.
Antonyuk Oksana I.
Full Text Available The goal of the article is development of theoretical, methodological and practical recommendations on the use of stress testing by Ukrainian commercial banks. Stress testing is defined as a part of bank risk management on the basis of scientific studies of domestic and foreign scientists. The article marks the essence of the bank stress testing and identifies its role in the structure of banks’ risk management in Ukraine. It considers goals of conducting stress testing in banking institutions. It identifies main aspects and specific features of conducting stress testing of bank risks. It characterises main advantages and shortcomings of use of stress testing in the modern bank risk management. It generalises the world and European approaches to the methods of conducting stress testing in commercial banks in comparison with the Ukrainian methodical recommendations. It shows that results of stress testing have practical value, since they help to preliminary assess influence of potentially negative events upon the state of the loan portfolio of the bank and make relevant managerial decisions.
Due to the implementation of the International Bank for Reconstruction and Development (IBRD) loan project "Prevention, diagnosis, treatment of tuberculosis and AIDS", a "Tuberculosis" component that is an addition to the national tuberculosis control program in 15 subjects of the Russian Federation, followed up by the Central Research Institute of Tuberculosis, Russian Academy of Medical Sciences, the 2005-2008 measures stipulated by the Project have caused substantial changes in the organization of tuberculosis control: implementation of Orders Nos. 109, 50, and 690 and supervision of their implementation; modernization of the laboratories of the general medical network and antituberbulosis service (404 kits have been delivered for clinical diagnostic laboratories and 12 for bacteriological laboratories, including BACTEC 960 that has been provided in 6 areas); 91 training seminars have been held at the federal and regional levels; 1492 medical workers have been trained in the detection, diagnosis, and treatment of patients with tuberculosis; 8 manuals and guidelines have been prepared and sent to all areas. In the period 2005-2008, the tuberculosis morbidity and mortality rates in the followed-up areas reduced by 1.2 and 18.6%, respectively. The analysis of patient cohorts in 2007 and 2005 revealed that the therapeutic efficiency evaluated from sputum smear microscopy increased by 16.3%; there were reductions in the proportion of patients having ineffective chemotherapy (from 16.1 to 11.1%), patients who died from tuberculosis (from 11.6 to 9.9%), and those who interrupted therapy ahead of time (from 11.8 to 7.8%). Implementation of the IBR project has contributed to the improvement of the national strategy and the enhancement of the efficiency of tuberculosis control.
Slamet, Isnandar; Mardiana Putri Carissa, Siska; Pratiwi, Hasih
Investors always seek an efficient portfolio which is a portfolio that has a maximum return on specific risk or minimal risk on specific return. Almost marginal conditional stochastic dominance (AMCSD) criteria can be used to form the efficient portfolio. The aim of this research is to apply the AMCSD criteria to form an efficient portfolio of bank shares listed in the LQ-45. This criteria is used when there are areas that do not meet the criteria of marginal conditional stochastic dominance (MCSD). On the other words, this criteria can be derived from quotient of areas that violate the MCSD criteria with the area that violate and not violate the MCSD criteria. Based on the data bank stocks listed on LQ-45, it can be stated that there are 38 efficient portfolios of 420 portfolios where each portfolio comprises of 4 stocks and 315 efficient portfolios of 1710 portfolios with each of portfolio has 3 stocks.
Full Text Available A recent innovation in the Indian banking structure has been the formation of a new banking institution—small finance banks (SFBs. These banks are expected to penetrate into financial inclusion by providing basic banking and credit services with a differentiated banking model to the larger population. In this context the new SFBs have multiple challenges in coming out with a new, differentiated business model. The challenges include building low cost liability portfolio, technology management, and balancing the regulatory compliances. This paper also presents the top of mind views of three senior executives of new small finance banks.
... 12 Banks and Banking 6 2010-01-01 2010-01-01 false Certain seasonal commodity loans to... POLICIES AND OPERATIONS Loan Terms and Conditions § 614.4231 Certain seasonal commodity loans to cooperatives. Loans on certain commodities that are part of government programs shall comply with the criteria...
Full Text Available We investigate a continuous-time version of the mean-variance portfolio selection model with jumps under regime switching. The portfolio selection is proposed and analyzed for a market consisting of one bank account and multiple stocks. The random regime switching is assumed to be independent of the underlying Brownian motion and jump processes. A Markov chain modulated diffusion formulation is employed to model the problem.
... the general nature and operations of such a company, any loan by a bank to such a company should be... 12 Banks and Banking 3 2010-01-01 2010-01-01 false Loan to open-end investment company. 221.109... CARRYING MARGIN STOCK (REGULATION U) Interpretations § 221.109 Loan to open-end investment company. In...
... Federal Home Loan Bank, or in the National Credit Union Administration Central Liquidity Facility if the... 12 Banks and Banking 2 2010-01-01 2010-01-01 false Bankers' banks. 204.121 Section 204.121 Banks... REQUIREMENTS OF DEPOSITORY INSTITUTIONS (REGULATION D) Interpretations § 204.121 Bankers' banks. (a)(1) The...
Morales Acevedo, Paola
This thesis consists of three chapters in banking. The first one studies the impact of emotions on real-world decisions made by loan officers by analyzing the loan conditions of loans granted immediately after a bank branch robbery. The second one analyses the repayment decisions of firms with
Wong, Ting-Kam Leonard
Consider a family of portfolio strategies with the aim of achieving the asymptotic growth rate of the best one. The idea behind Cover's universal portfolio is to build a wealth-weighted average which can be viewed as a buy-and-hold portfolio of portfolios. When an optimal portfolio exists, the wealth-weighted average converges to it by concentration of wealth. Working under a discrete time and pathwise setup, we show under suitable conditions that the distribution of wealth in the family sati...
Full Text Available The article proposes the borrower’s bank credit scoring model that is of particular relevance in an unstable world and Ukrainian financial markets. The essence of this integrated model is the consistent definition of indicators, which analyze the financial and economic situation and development of scoring that allows to calculate overall index, that is, the integral factor of credit scoring level of the bank to calculate which one uses the formed set of factors characterizing riskiness, profitability and liquidity of the banking institution. The author determines the factors according to their functional purpose; the former ones are divided into four groups: capital adequacy, loan portfolio quality, profitability and liquidity. Each group consists of four indicators; each indicator is assigned thresholds to determine the appropriate credit scoring level of the bank for one or another direction. The higher is the value of the integral factor, the more efficient and less risky is the financial and economic activity of banks and the higher is their credit scoring level. The study concludes that the proposed model for bank credit scoring differs with its transparency and clarity due to use in its implementation only public information. The disadvantages include the presence of the subjective factor in assigning a certain number of points based on expert and normative methods.
... 12 Banks and Banking 6 2010-01-01 2010-01-01 false Accounting for the allowance for loan losses and chargeoffs. 621.5 Section 621.5 Banks and Banking FARM CREDIT ADMINISTRATION FARM CREDIT SYSTEM ACCOUNTING AND REPORTING REQUIREMENTS General Rules § 621.5 Accounting for the allowance for loan losses and...
... 12 Banks and Banking 6 2010-01-01 2010-01-01 false What must your member business loan policy address? 723.6 Section 723.6 Banks and Banking NATIONAL CREDIT UNION ADMINISTRATION REGULATIONS AFFECTING... other data when necessary to analyze future loans and lines of credit, such as, borrower's history and...
... 12 Banks and Banking 3 2010-01-01 2010-01-01 false Reporting of stock loans. 225.44 Section 225.44... § 225.44 Reporting of stock loans. (a) Requirements. (1) Any foreign bank or affiliate of a foreign bank... involves a person or group of persons that has been the owner or owners of record of the stock for a period...
Canton, Erik; Blom, Andreas
Financial aid to students in tertiary education can contribute to human capital accumulation through two channels: increased enrollment and improved student performance. We analyze the quantitative importance of both channels in the context of a student loan program "Sociedad de Fomento a la Educacion, Superior" (SOFES) implemented at…
Nikonov, Oleg; Medvedeva, Marina
In the paper we consider economically motivated problems, which are treated with the help of methods of portfolio theory that goes back to the papers by H. Markowitz  and J. Tobin . We show that the portfolio theory initially developed for risky securities (stocks) could be applied to other objects. In the present paper we consider several situations where such an application is reasonable and seems to be fruitful. Namely, we consider the problems of constructing the efficient portfolio of banking services and the portfolio of counteragents of a firm.
Poor farm households and other microentrepreneurs have difficulties in obtaining loans from banks and other financial institutions because they are unable to provide securities or collaterals for the loans. Collaterals on loans reduce uncertainty and moral hazard problems for creditors. They also serve as a measure of the ...
Full Text Available In many countries the mortgage banking plays a basic role in the housing funding. The Polish model of the housing funding in large measure grounded on banking loans. However, more than 95% of mortgage loans come from universal banks. Mortgage banks, which have existed in the Polish economy for 10 years still play a small role in housing funding.
Akwaa-Sekyi, Ellis Kofi
Full Text Available The initiation, funding, servicing and monitoring of loans by financial intermediaries has been done without regard to some critical factors which could have averted the likelihood of default. The study aimed at measuring the extent that owner-specific, borrower-specific, loan and lender-specific characteristics could determine the probability of loan default. The study used logistic regression for 224 business customers of a bank in Ghana from its nation-wide branches. The study found that owner’s extra income (ownership characteristics, multiple borrowing, diversion of loan purpose (borrower characteristics, loan price, loan purpose, loan age, repayment plan (loan characteristics and underfunding (lender characteristics significantly determined the probability of business loan default. The overall model predicted up to 78.5% of variations in the likelihood of default. The hierarchy of strong determinants given by their odd ratios were loan purpose (47.9 times, underfunding (19.2 times, diversion of loan purpose (11.7 times multiple borrowing (9.4 times and owner’s extra income (8.2 times. The study can conclude that financial intermediaries should be wary of the credit granting process taking cognisance of ownership, borrower, loan and lender characteristics especially the significant predictors. Combining quantitative and qualitative variables as determinants of default could be considered in future.
Congress of the U.S., Washington, DC. Senate Committee on Appropriations.
This 1976 Senate Hearing before the Appropriations Committee is concerned with student loans. Issues discussed are: (1) student loan programs; (2) educational loans to middle-income families; (3) default rate on bank loans; (4) HELP grant loan; (5) views of the Financial Aid Officers Panel; (6) proprietary career schools; (7) consumer protection;…
... 12 Banks and Banking 1 2010-01-01 2010-01-01 false Home Loan Data Submission IV Appendix IV to Part 27 Banks and Banking COMPTROLLER OF THE CURRENCY, DEPARTMENT OF THE TREASURY FAIR HOUSING HOME LOAN DATA SYSTEM Pt. 27, App. IV Appendix IV to Part 27—Home Loan Data Submission ER21JN94.003 ER21JN94...
Full Text Available Banks in Romania offers its customers a wide range of products but which involves both risk taking. Therefore researchers seek to build rating models to help managers of banks to risk of non-recovery of loans and interest. In the following we highlight rating Raiffeisen Bank, BCR-ERSTE Bank and Transilvania Bank, based on the models CAAMPL and Stickney making a comparative analysis of the two rating models.
Less-intense competition for deposits, by mitigating banks’ incentive to take excessive risks, is traditionally believed to lead to lower non-performing loan (NPL) ratios and more-stable banks. This paper revisits this proposition in a model with borrower moral hazard in which banks’ NPL ratios
Full Text Available This research explores most dominant lending product to population of Bosnia and Herzegovina, a consumer loan, with aim to answer the question of what factors trigger loan repayment failure. It explores relation of borrower characteristics such as gender, age, level of indebtness to likeliness of loan repayment by use of probit on banking data sample representing 39% of the market share in the country. It identifies factors which lead to loan repayment failure and also provides exact empirical model for default prediction at loan approval stage. Main audience of this research should be banks, which could use the finding of the study to adjust their credit policies and risk appetite to ensure that lending losses from this strongly present product are minimized, thus leading to stable and financially sound banking sector.
... 12 Banks and Banking 2 2010-01-01 2010-01-01 false Loans in areas having special flood hazards...) Investments and Loans § 208.25 Loans in areas having special flood hazards. (a) Purpose and scope—(1) Purpose. The purpose of this section is to implement the requirements of the National Flood Insurance Act of...
... and other collateral. 221.7 Section 221.7 Banks and Banking FEDERAL RESERVE SYSTEM (CONTINUED) BOARD... value of margin stock and other collateral. (a) Maximum loan value of margin stock. The maximum loan... nonmargin stock and all other collateral. The maximum loan value of nonmargin stock and all other collateral...
Erdogan, E; Goldfarb, D; Iyengar, G
... on the portfolio beta, and limits on cash and industry exposure. We show that the optimal portfolios can be computed by solving second-order cone programs -- a class of optimization problems with a worst case complexity (i.e...
Full Text Available The purpose of the paper is to work out and characterize bank business models that are formed in Ukraine. Methodology. Our research we will spend among banks that are functioning on the Ukrainian financial market and are not on the stage of liquidation, so the sample under study in our work is comprised of 131 banks which are different in their ownership structure and size. The core of the methodology is a statistical clustering algorithm that allows identifying the groups of banks (clusters with similar business models as banks with similar business model strategies have made similar choices regarding the composition of their assets and liabilities. The cluster analyses were taken on the base of seven chosen indicators: bank loans, bank liabilities, enterprise loans, enterprise liabilities, household loans, household liabilities and trading assets. Results. The traditional business model of bank is worked out. The bank business models that are functioning in Ukraine are identified on the base of cluster analyses using balance sheet characteristics of 131 Ukrainian banks. We find that in Ukraine were formed three types of bank business models: “Focused retail”, “Diversified retail” and “Corporative retail”. The description of each model is given. Practical implications. More detailed research of distinguished models allows not only to find out the main advantages and disadvantages of each bank model, but also the main problems that follow the development of Ukrainian banking sector. Identifying of bank models and their studying simplifies searching and elaboration of regulatory instruments as there is a two-way causation between regulation and bank business models. This implies a symbiotic relationship between regulation and bank business models: business models respond to regulation which in turn responds to the evolution of new business models. Value/originality. Such survey is conducted at the first time among Ukrainian banks. The
Full Text Available In this paper I wish to highlight the position of commercial banks from Romania in the absorption of Europeanfunds. Providing the financial resources necessary in order to carry out the project activities is one of the problems thatmany users have experienced. Being aware of this matter, but also constrained by governmental requirements, mostbanks have decided to introduce such credit facilities as well in their loan portfolio. As far as information disseminationand advertising are concerned, commercial banks have proven to occupy a leading position, but most important are theperformance levels achieved by them since they started accessing these Structural Funds. In this paper I will presentthe funding opportunities in the field of European funds offered by two large leading banks: types of credits, benefits,commissions, statistics and even successful projects to which they are partners. Each bank has its own marketingstrategy to promote these products, but over time one can notice that they are becoming increasingly interested in thesegrants, while the bank personnel is involved as a target group in various European programs. The interest of thebanking system in supporting grants recipients can be noticeable even form the project writing phase of the project,when the banks offer financial advice in determining the estimate budget. With all the help from commercial banks,Romania has managed to achieve a rate of Structural Funds absorption of only 10%, which is outrun even Bulgaria.
Moll, Peter; Geli, Patricia; Saavedra, Pablo
This paper examines the correlates of success of development policy lending operations of the World Bank between 2004 and 2012. The paper uses a data set constructed of individual loan characteristics and ex-post loan ratings produced by the World Bank's Independent Evaluation Group. Departing from the related literature, the paper focuses mostly on examining the impact of loan characteris...
The result showed that the agro-based enterprises are faced with the problems of insufficient collateral, high interest rate and poor documentation while the banks are faced with the problems of loan diversion, irregular loan repayment and none presentation of perfectible collaterals by loan beneficiaries. Commercial banks ...
Sicking, Joachim; Guhr, Thomas; Schäfer, Rudi
We consider the problem of concurrent portfolio losses in two non-overlapping credit portfolios. In order to explore the full statistical dependence structure of such portfolio losses, we estimate their empirical pairwise copulas. Instead of a Gaussian dependence, we typically find a strong asymmetry in the copulas. Concurrent large portfolio losses are much more likely than small ones. Studying the dependences of these losses as a function of portfolio size, we moreover reveal that not only large portfolios of thousands of contracts, but also medium-sized and small ones with only a few dozens of contracts exhibit notable portfolio loss correlations. Anticipated idiosyncratic effects turn out to be negligible. These are troublesome insights not only for investors in structured fixed-income products, but particularly for the stability of the financial sector. JEL codes: C32, F34, G21, G32, H81.
Kruger, Evonne J.; Holtzman, Diane M.; Dagavarian, Debra A.
There are many types of student portfolios used within academia: the prior learning portfolio, credentialing portfolio, developmental portfolio, capstone portfolio, individual course portfolio, and the comprehensive education portfolio. The comprehensive education portfolio (CEP), as used by the authors, is a student portfolio, developed over…
Nakamura, L.I.; Roszbach, K.
In this paper we use credit rating data from two Swedish banks to elicit evidence on these banks’ loan monitoring ability. We do so by comparing the ability of bank ratings to predict loan defaults relative to that of public ratings from the Swedish credit bureau. We test the banks’ abilility to
Full Text Available Profitability is one of the essential elements in the process of assessing performance in banking finance. Bank needs to keep its profitability to maintain the continuity of its corporation. In the process of attaining income and making profit, a bank commonly does many efforts. One of them is through offering the credits to the public. However, in fact, credit which becomes the basis to run the company has the risk of failure when the clients/ debtors have to pay the loan back on its deadline/ Non Performing Loan (NPL. The objective of this study is to find out whether NPL influences negatively or not towards the bank profitability. This study employed the basic regression analysis method through linearity and normality tests. The data used is the financial statement of PT. Bank OCBC NISP, Tbk in 2002 until 2010 published by Bank Indonesia. Based on the revealed elaboration and the data analysis about the influence of NPL towards profitability, it can be concluded that the condition of Non-Performing Loan (NPL in PT. Bank OCBC NISP, Tbk is good in general since it is still below the NPL value regulated by Bank Indonesia which is 5%. Meanwhile, the profitability based on the return on assets (ROA in PT. Bank OCBC NISP tends to be below the minimum standard which is 1,5%, but it is classified in high category in the framework of performance determination of banking finance governed by Bank Indonesia. In PT. Bank OCBC NISP, Tbk, Non-Performing Loan (NPL influences negatively towards profitability.
Shujing Li; Jiaping Qiu; Chi Wan
This paper investigates the effect of corporate globalization on bank loan contracts, as reflected in both price and non-price loan terms. We show that globally diversified firms receive more favorable valuation from creditors than domestic firms do. Specifically, we find strong evidence that global firms are charged lower loan rates, and are spared the more restrictive non-price contractual terms such as short maturity and collateral requirements. Our results are robust to various extensions...
Portfolio insurance, as practiced in 1987, consisted of trading between an underlying stock portfolio and cash, using option theory to place a floor on the value of the position, as if it included a protective put. Constant Proportion Portfolio Insurance (CPPI) is an option-free variation...... on the theme, originally proposed by Fischer Black. In CPPI, a financial institution guarantees a floor value for the “insured” portfolio and adjusts the stock/bond mix to produce a leveraged exposure to the risky assets, which depends on how far the portfolio value is above the floor. Plain-vanilla portfolio...... insurance largely died with the crash of 1987, but CPPI is still going strong. In the frictionless markets of finance theory, the issuer’s strategy to hedge its liability under the contract is clear, but in the real world with transactions costs and stochastic jump risk, the optimal strategy is less obvious...
This study on utilization of loans was conducted in the five branches of theNigerian Agricultural and Cooperatives Bank (NACRDB), in Abia State Nigeria. Two farmer customers were sampled randomly in proportion to the category of the bank branch . Thirty-two (32) farmers who had mandatory savings with the bank were ...
These include an increase in non-performing loans (NPLs), increased regulatory intervention and economic slowdown. The regulator, perceiving that banks were overcharging the banking public, has been intervening through pricing guidelines on the market, reducing bank charges and interest rates and influencing the ...
Full Text Available A quality of the credit portfolio is one of the most important factors of banking system reliability. It is obviously, that there is a direct relationship between this indicator and financial stability of the bank. In turn, the quality of the loan portfolio depends on many factors that are investigated in scientific and educational literature. In this paper, we propose to focus on a group of factors of credit risk that are connected with the availability of information about the borrower. The low efficiency of the national system of collecting information about borrowers in Ukraine in comparison with foreign models was confirmed by the quantitative analysis. This tendency cases the high level of credit risks and low financial stability level of domestic banks. It is necessary to make active efforts on improving the effectiveness of credit bureaus in Ukraine by establishing public credit registry and also to focus on solving other problems associated with the collection and use of information about borrowers
Lam, W. H.; Jaaman, Saiful Hafizah Hj.; Isa, Zaidi
Risk management is very important in portfolio optimization. The mean-variance model has been used in portfolio optimization to minimize the investment risk. The objective of the mean-variance model is to minimize the portfolio risk and achieve the target rate of return. Variance is used as risk measure in the mean-variance model. The purpose of this study is to compare the portfolio composition as well as performance between the optimal portfolio of mean-variance model and equally weighted portfolio. Equally weighted portfolio means the proportions that are invested in each asset are equal. The results show that the portfolio composition of the mean-variance optimal portfolio and equally weighted portfolio are different. Besides that, the mean-variance optimal portfolio gives better performance because it gives higher performance ratio than the equally weighted portfolio.
Mădălina Antoaneta RĂDOI
Full Text Available The priority in portfolio management is a good risk assessment and management. Of great importance is the margin that an asset portfolio guarantor must use with specific expertise in certain areas of market temporal inefficiency in order to improve its management performance. The relevant validity of the financial market and the emphasis laid on risk management carried along the development of financial instruments tailored to risk management. New derivative financial instruments have revolutionized the methods of portfolio management, of corporate treasury management, of banking management and, more generally, all financial strategies.
... limit for a credit union? 723.16 Section 723.16 Banks and Banking NATIONAL CREDIT UNION ADMINISTRATION REGULATIONS AFFECTING CREDIT UNIONS MEMBER BUSINESS LOANS § 723.16 What is the aggregate member business loan limit for a credit union? (a) General. The aggregate limit on a credit union's net member business loan...
... 12 Banks and Banking 1 2010-01-01 2010-01-01 false Nonfederally chartered commercial banks. 34.24... LENDING AND APPRAISALS Adjustable-Rate Mortgages § 34.24 Nonfederally chartered commercial banks. Pursuant to 12 U.S.C. 3803(a), a State chartered commercial bank may make ARM loans in accordance with the...
The question of how to stabilize financial systems has attracted considerable attention since the global financial crisis of 2007-2009. Recently, Beale et al. [Proc. Natl. Acad. Sci. USA 108, 12647 (2011)] demonstrated that higher portfolio diversity among banks would reduce systemic risk by decreasing the risk of simultaneous defaults at the expense of a higher likelihood of individual defaults. In practice, however, a bank default has an externality in that it undermines other banks’ balance sheets. This paper explores how each of these different sources of risk, simultaneity risk and externality, contributes to systemic risk. The results show that the allocation of external assets that minimizes systemic risk varies with the topology of the financial network as long as asset returns have negative correlations. In the model, a well-known centrality measure, PageRank, reflects an appropriately defined “infectiveness” of a bank. An important result is that the most infective bank needs not always to be the safest bank. Under certain circumstances, the most infective node should act as a firewall to prevent large-scale collective defaults. The introduction of a counteractive portfolio structure will significantly reduce systemic risk.
This thesis presents four topics on households' portfolio choices. Empirically, households do not hold well-diversified wealth portfolios. In particular, they refrain from putting their savings into risky assets. We explore several ways that might help explaining this observation. Using Dutch
Kitt, R.; Kalda, J.
The question of optimal portfolio is addressed. The conventional Markowitz portfolio optimisation is discussed and the shortcomings due to non-Gaussian security returns are outlined. A method is proposed to minimise the likelihood of extreme non-Gaussian drawdowns of the portfolio value. The theory is called Leptokurtic, because it minimises the effects from “fat tails” of returns. The leptokurtic portfolio theory provides an optimal portfolio for investors, who define their risk-aversion as unwillingness to experience sharp drawdowns in asset prices. Two types of risks in asset returns are defined: a fluctuation risk, that has Gaussian distribution, and a drawdown risk, that deals with distribution tails. These risks are quantitatively measured by defining the “noise kernel” — an ellipsoidal cloud of points in the space of asset returns. The size of the ellipse is controlled with the threshold parameter: the larger the threshold parameter, the larger return are accepted for investors as normal fluctuations. The return vectors falling into the kernel are used for calculation of fluctuation risk. Analogously, the data points falling outside the kernel are used for the calculation of drawdown risks. As a result the portfolio optimisation problem becomes three-dimensional: in addition to the return, there are two types of risks involved. Optimal portfolio for drawdown-averse investors is the portfolio minimising variance outside the noise kernel. The theory has been tested with MSCI North America, Europe and Pacific total return stock indices.
Cortes, Jordi Magrina; Nizamani, Sarwat; Memon, Nasrullah
In this paper we present a web-based information system which is a portfolio social network (PSN) that provides solutions to the recruiters and job seekers. The proposed system enables users to create portfolio so that he/she can add his specializations with piece of code if any specifically...
Daigneau, William A.
In this article, the author talks about Portfolio Management, a concept used to make allocation decisions in the world of financial investments. While much has been written about Portfolio theory, and the term is widely used in the facilities management industry, little is really understood about the concept and its real-world application. The…
Measuring bank efficiency is difficult because there is no satisfactory definition of bank output. Neither the number of accounts nor total assets, total loans, nor total deposits provide a good index of output. Moreover, the value added of banks - given by their labor costs and profits - measures both the output and cost of banking. Many analysts use accounting data on bank margins, costs and profits as measures of bank efficiency. But the usefulness of such data is undermined by substantial...
Shurtz, Mary Ann; LeFlore, Ann Becker
This module, one of six on teaching consumer matters to low-income adults, discusses banking skills. Topics include banking services (savings accounts, safety deposit boxes, Christmas clubs, loans, etc.), checking accounts (deposits, checkwriting, check registers, opening an account), how to use the check register (cancelled checks, deposits),…
Yasmin Agueda Rios-Solis
Full Text Available The Repayment Policy for Multiple Loans is about a given set of loans and a monthly incoming cash flow: what is the best way to allocate the monthly income to repay such loans? In this article, we close the almost 20-year-old open question about how to model the repayment policy for multiple loans problem together with its computational complexity. Thus, we propose a mixed integer linear programming model that establishes an optimal repayment schedule by minimizing the total amount of cash required to repay the loans. We prove that the most employed repayment strategies, such as the highest interest debt and the debt snowball methods, are not optimal. Experimental results on simulated cases based on real data show that our methodology obtains on average more than 4% of savings, that is, the debtor pays approximately 4% less to the bank or loaner, which is a considerable amount in finances. In certain cases, the debtor can save up to 40%.
This thesis aims at investigating the financial stability of China's banking system. Since the banking system is one of the most important financial intermediaries in the financial systems, the financial soundness of banks could secure the stability of the whole financial system. Two of the factors that may significantly increase imbalance of the banking system, and hence affect financial stability of an economy is the accumulated non-performing loans of banks and the macro-economic turbulenc...
Evaluation Of Loan Disbursement And Repayment Of Supervised Credit Scheme Of Nigeria Agricultural Cooperative And Rural Development Bank(Nacrbd) In Zaria And Kaduna North Local Government Areas Of Kaduna State, Nigeria.
Dietrich, J. Kimball; Wihlborg, Clas
We investigate the effect of changes in capital regulation on the strictness(leniency) of loan terms using a simple model of bank capital requirements andasset quality examinations. Banks offer different levels of `leniency' in the senseof willingness to offer automatic extensions of loans...... rates. As capital requirements increase thedifference between initial capital levels and between interest rates of strict andlenient banks decrease. Thus, higher capital requirements in recessions tend toreduce the interest rate premium paid for leniency. If a recession is interpreted asan increase...... in the required return, the interest rate premium paid for leniency isincreased in recession at a given level of required capital....
The Standard for Portfolio Management – Fourth Edition has been updated to best reflect the current state of portfolio management. It describe the principles that drive accepted good portfolio management practices in today’s organizations. It also expands the description of portfolio management to reflect its relation to organizational project management and the organization.
...,” in the case of loans to brokers or dealers secured by margin stock where the proceeds of the loans... made to a broker to furnish cash working capital for the conduct of his brokerage business (i.e., for... referred to in § 221.3(c) which the lending bank must accept in good faith in determining the purpose of...
Kara, A.; Marques-Ibanez, D.; Ongena, S.
We investigate the effect of securitization activity on banks’ lending standards using evidence from pricing behavior on the syndicated loan market. We find that banks more active at originating asset-backed securities are also more aggressive on their loan pricing practices. This suggests that
Buurgaard Nielsen, J.; Pols, D.; Van Gelder, J.W.; Denie, S.; Scheire, C.
This report is the first comparison of the climate change performance of Dutch banks that analyses the actual investments of these banks. It reviews a substantial share of each bank's portfolio, according to three criteria: how much they invest in the main cause of climate change, fossil fuels; how much they invest in the main alternative to fossil fuels, renewable energy; the bank's plans and policies to limit their contribution to climate change
This paper discusses portfolio analysis as a method to evaluate utility supply decisions. Specifically a utility is assumed to increase the value of its portfolio of assets whenever it invests in a new supply technology. This increase in value occurs because the new asset either enhances the return or diversifies the risks of the firm's portfolio of assets. This evaluation method is applied to two supply innovations in the electric utility industry: jointly-owned generating plants and supply contracts with independent power producers (IPPs)
P. Duijm (Patty); D. Schoenmaker (Dirk)
textabstractTheory suggests that cross-border banking is beneficial as long as there is a non-perfect correlation across country-specific risks. Using a unique hand-collected dataset with cross-border loans for the 61 largest European banks, we find that cross-border banking in general decreases
Arnildo da Silva Correa
Full Text Available We use microdata from the Credit Information System (SCR of the Central Bank of Brazil to study the relationship between credit default and business cycles. In particular, we study the first part of the argument underlying the discussion about procyclicality related to the Basel II Accord: that recessions might increase credit defaults and have adverse impacts on the losses in portfolios of lender institutions. We explore both time series and cross-sectional variation in the data. Our data on the individual level are composed of retail loan transactions in two modalities-Consumer Credit and Vehicle Financing-from 2003 to 2008. Our results support the idea of a negative relationship between business cycles and credit default, but less strong than suggested in previous studies that use corporate data. We also find low and dispersed default correlations, and smaller losses in Value at Risk (VaR experiments than those found in the literature. These results may be possibly explained by the fact that, in the retail sector, loans are given to a large number of individuals, which may help to diversify risks.
Export financing of a nuclear power plant to be exported from Germany, is, in principle, provided by German commercial banks and KfW (Kreditanstalt fuer Wiederaufbau). As a rule, 50 per cent of the financing of maturities falling due under the export portion of the loan will be taken over by a banking syndicate of approximately 25 member banks, and the remaining 50 per cent would be provided by KfW. KfW and the commercial banks must grant their loans at the respective money market conditions. The banks' and KfW's loans will normally be disbursed pro rata delivery. (HP) [de
... UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE GENERAL AND PRE-LOAN POLICIES AND PROCEDURES COMMON TO ELECTRIC... percent guarantees of private-sector loans under section 311. Under section 311 of the RE Act, both... from RUS a 90 percent guarantee of a private-sector loan to refinance their Federal Financing Bank...
This article describes some strengths and limitations of credit programs for women in developing countries. It is urged that development planners recognize the importance of the selection of the type of credit mechanism in the long term. Ethical issues should be decided upon before the credit mechanism is operable. Organizations should make clear what level of commitment there is to empower borrowers. Most organizations give loans to women and assume empowerment will take place without devising strategies to ensure empowerment. Credit mechanisms include credit for the poor and credit by the poor. A sound financial portfolio and 100% repayment are not the appropriate criteria for securing the empowerment of women. Empowerment of women is related to "building the capacity of borrowers to manage and control decision making." UNICEF's framework of gender equality and women's empowerment identifies levels of empowerment as "welfare, access, conscientisation, participation, and control." Development planners should be aware that provision of credit also has the potential to increase a poor family's debt. Delinquency may be hidden by overlapping loans that trap borrowers. Fewer installment payments increase the chances of a debt trap. Reducing the number of installments may reduce administrative costs and conform to production processes, but may also lead to a debt trap. There is now considerable emphasis on investing in low-income women entrepreneurs as a highly efficient means of achieving social and economic objectives. Credit programs aim to support the growth of small, self-sustaining businesses, to improve women's opportunities, and to provide alternatives to exploitation by local money-lenders. This article describes the following credit mechanisms: bank guarantee systems, government credit schemes, intermediary projects, direct lending projects, banks for the poor, credit unions, and village-based banks.
CHATTI, Mohamed Ali; KABLAN, Sandrine; YOUSFI, Ouidad
The current paper analyzes the performance and the choice of portfolio in Islamic banks. We consider a sample of 8 Malaysian universal Islamic banks between 2004 and 2008. We use the Herfindahl-Hirschman Index (HHI) as an indicator of the degree of diversification. The performance of the banks is measured by the return on assets ratio (ROA) and the Risk Adjusted Return On Capital ratio (RAROC). Finally, we use the Modern Portfolio Theory (MPT) of Markowitz to define the efficient frontier and...
Spatial comparison of areas at risk for schistosomiasis in the hilly and mountainous regions in the People’s Republic of China: evaluation of the long-term effect of the 10-year World Bank Loan Project
Full Text Available The long-term effectiveness of the mainly chemotherapy-based control strategy of the World Bank Loan Project (WBLP for schistosomiasis control in Chinese hilly and mountainous regions was evaluated with a view to determine the best road forward. Based on the national database of schistosomiasis prevalence for the periods of 1999-2001 and 2007- 2008 in the People’s Republic of China, a Bayesian regression model was used for spatial comparison of schistosomiasis risk distribution between two periods taking account of all the potential risk factors simultaneously through two latent components of random effects: spatially correlated heterogeneities (CH and spatially uncorrelated heterogeneities (UH. Four different types of endemic areas were investigated: those that remained endemic despite control efforts (17 or 37.8%, those that became non-endemic (9 or 20.0%, those that reverted back to endemicity (7 or 15.6%, and those with fluctuating endemicity (12 or 26.7%. The overall prevalence of schistosomiasis was lower in 2007-2008 compared with that in 1999- 2001, but the spatial distribution of risk remained similar. Compared to 1999-2001, the magnitude and range of risk even tended to be greater in 2007-2008. UH showed a fluctuating pattern, while CH increased gradually doubling over the two periods. There was no evidence for long-term effectiveness of the WBLP chemotherapy-based control strategy in this region. Controlling the effect of UH is still the main aspect of current schistosomiasis control strategy for the hilly and mountainous regions, but innovative methods are urgently needed for effectively controlling UH.
Adebisi Sunday Abayomi
Full Text Available This study highlighted the roles and strategic importance of credit risk management in thebanking industry vis-à-vis sustenance of shareholders’ wealth. The authors examined whether areduction in the non-performing credits in banks’ loan portfolio will reveal a possible correlationbetween effective credit risk management administration and shareholder’s wealth. In testing this,secondary data were sourced from the randomly selected five banks financials (between the period of2006 to 2010 with the use of relevant ratios. Twohypotheses were tested using multiple regressionand correlation method. The result of hypothesis one showed that the calculated r – statistics (r =.429,p<0.05 was greater than the tabulated r – statistics (r =.381 showing that the test was significantat0.05 alpha level. The result of hypothesis two alsoshowed that the calculated r-statistics (r=.403,p<0.05 was greater than tabulated r-statistics (r=.381 at 0.05 level of significance which impliedthat, there was a significant relationship betweencredit risk management and shareholders’ wealth.Based on these results, the authors recommended that, the banking sector should strive to employobjective standards of professionalism, experienceand high integrity in placement of managers whoare responsible for managing the credit portfolios;for this will largely influence the quality of riskassets management and debt recovery which will in-turn engender confidence in the banking industryand ensure the sustenance of shareholders’ wealth and investment.
Saltofte, Margit; Krill, Cecilia
Portfolio i Praksis handler om det konkrete arbejde med portfolio i uddannelser, og hvordan det hænger sammen med læring, refleksion og evaluering. Helt grundlæggende kan portfolier kategoriseres i to hovedtyper med hver sine potentialer: arbejdsportfolier og præsentationsportfolier...... sigte, er arbejdsportfolien i udgangspunktet lukket og privat. Det vil sige at man selv udvælger, hvad der skal ses af fx vejleder eller medstuderende – og hvad, der skal forblive privat. Portfolio i Praksis tilbyder desuden en række håndgribelige øvelser, der kan bruges som hjælp til at understøtte det...... praktiske arbejde med portfolio. Bogen er især tiltænkt studerende, som kan bruge øvelserne og portfoliometoderne gennem hele deres studie....
US Agency for International Development — PfMS is an implementation of WorkLenz. WorkLenz is USAID's portfolio management system tool. It is a commercially available, off-the-shelf (COTS) package that...
Full Text Available Intensification of financial development during last decade causes transformation of banking sector functioning. In particular, among the most significant changes over this period should be noted the next ones: convergence of financial market segments and appearance of cross-sector financial products, an increase of prevailing of financial sector in comparison with real economy and level of their interdependent, an intensification of crisis processes in financial and especially banking sector and a significant increase of the scale of the crisis consequences etc. thus, in such vulnerable conditions it is become very urgent to identify the relevant factors that can influence on the stability of banking sector, because its maintenance seems to be one of the most important preconditions of the stability of the national economy as a whole. Purpose of the article is to analyze key performance indicators of the Ukrainian banking system, clarify its main problems, identify relevant factors of the stability of the Ukrainian banking system and the character of their influence on the dependent variable. Realization of the mentioned above tasks was ensured by regression analysis (OLS regression. Analysis of key indicators that characterize current situation in the Ukrainian banking system found out the existence of numerous endogenous and exogenous problems, which, in turn, cause worsening most of analyzed indicators during 2013-2015. Unfavorable situation in Ukrainian banking system determined the necessity of identification of relevant factors of banking system stability to avoid transmission of financial shocks. According to the results of regression analysis on the stability of banking sector positively influence such factors as increase of interest margin to gross income ratio, reserves to assets ratio, number of branches, ratio of non-performing loans to total loans. Meanwhile, negative impact on stability of banking system has an increase of liquid
Ronald Jean Degen
This aim of this paper is to describe possible ways of investing in equity; choosing the right stocks(among small-cap, large-cap, value, growth, and foreign) using fundamental analysis, defining their appropriate mix in the portfolios according to the desired return-risk profiles based on Markowitz?s modern portfolio theory, and using technical analysis to buy and sell them.
... housing loans-consumer protection provisions. 590.4 Section 590.4 Banks and Banking OFFICE OF THRIFT... manufactured housing loans—consumer protection provisions. (a) Definitions. As used in this section: (1... method. Precomputed finance charges do not include loan fees, points, finder's fees, or similar charges...
Moro, Andrea; Fink, Matthias; Maresch, Daniela
Loan managers’ trust in entrepreneurs can be a useful tool for overcoming entrepreneurial firms’ opaqueness. Nevertheless, the possibility for loan managers to leverage trust can be affected by differences in the regulative institutions within the banks (type of bank) and by place-bound normative...
... the administrative cost over the effective life of the loan. (b) Accounting treatment. Subject to... accordance with generally accepted accounting principles. Interpretations ... 12 Banks and Banking 2 2010-01-01 2010-01-01 false Accounting for fees on international loans. 211...
... cost over the effective life of the loan. (b) Accounting treatment. Subject to paragraph (a) of this... accepted accounting principles. ... 12 Banks and Banking 4 2010-01-01 2010-01-01 false Accounting for fees on international loans. 347...
... state agricultural loan mediation programs? 617.7430 Section 617.7430 Banks and Banking FARM CREDIT... Mediation Programs § 617.7430 Are institutions required to participate in state agricultural loan mediation programs? (a) If initiated by a borrower, System institutions must participate in state mediation programs...
... 12 Banks and Banking 6 2010-01-01 2010-01-01 false Application of payments and income recognition on nonaccrual loans. 621.8 Section 621.8 Banks and Banking FARM CREDIT ADMINISTRATION FARM CREDIT... established that reasonably demonstrates future repayment capacity. (c) The institution shall employ the...
Ekaterina Vladimirovna Mazikova
Full Text Available The implementation of modern banking activities involves the realization of investments. Investment is a complex discussion economic category, characterized by a number of features. The types and forms of investment are manifold and can be transformed with account of the state of the economy and the level of development of industrial relations. The faster growth of the financial sector in the economy has stipulated the development of financial investment. Banks as financial and lending institutions actively make financial investments in securities. Banks’ investment in securities pursues a number of purposes which determine the selection of securities for investment and their quality. The article identified the targets of bank investments in securities and their development trends under current conditions on the basis of the analysis of the actual data for 2010–2014. Negative revaluation and the actual decrease in the value of corporate securities of Russian issuers reduce their commercial appeal. Banks refuse to speculate on the stock market in favor of the securities that ensure liquidity. Banks’ investments aim to purchasing securities from the Lombard List of the Bank of Russia in order to obtain loans and participate in the repo transactions. Thus, during the analyzed period, banks’ investments in securities transformed from systemically important assets that generate substantial profit into the mechanism that provides liquidity. It should be noted that a significant part of investment resources of Russian banks services the debt obligations of Russia’s Government. The article also identified a trend of banks’ increasing investment in the participation portfolios of subsidiaries and associated joint stock companies. The official data of the Central Bank of the Russian Federation (Bank of Russia , and the Federal State Statistics Service  were used as the information base for the study
... vital importance”; and, to fulfill such requirement, “it is clear that the bank must be alert to the... 12 Banks and Banking 3 2010-01-01 2010-01-01 false Reliance in âgood faithâ on statement of purpose of loan. 221.106 Section 221.106 Banks and Banking FEDERAL RESERVE SYSTEM (CONTINUED) BOARD OF...
Full Text Available The aim of this article is to clarify basic principles of responsible lending in lending agreements between banks and individuals in Latvia, as well as in the existing legislation in the Baltic States that regulates this process. In order to obtain research results, the authors performed qualitative analysis of scientific literature on the issues of responsible lending; legislation that regulates mortgage lending in the Baltic States; successful experience of banks in other countries; information available on home pages of banks about commercial bank loan volumes for mortgage loans with different types of real estate asset backing; information included in loan agreements of four commercial banks in Latvia and its compliance with the laws and regulations. Loan borrower evaluation stages for review of a new loan application were developed. On the basis of loan agreement analysis, the authors elaborated a formula of monthly loan payments for bank customers who experience unfavourable financial conditions. As a result of the research, the authors came to a conclusion that in Latvia and Estonia there is no legislation that directly regulates mortgage loans. During the research the authors also faced some restrictions, as not all banks in Latvia, which continue lending activities, are willing to give information included in loan agreements.
Federal Student Aid, US Department of Education, 2014
For those needing a loan to attend college, think federal aid first. Federal student loans usually offer borrowers lower interest rates and have more flexible repayment terms and options than private student loans. This brief report answers the following questions about federal aid: (1) What is a federal student loan?; (2) What is a private…
General Accounting Office, Washington, DC. Div. of Human Resources.
This report was prepared to determine lenders' rates of return or profitability on Stafford loans in their portfolios, reasons for varying levels of profitability among institutions that hold such loans, and the effect of 1986 subsidy reductions on these lenders' profitability. The study focused on the activities of lenders that purchase Stafford…
Devereux, Michael P.; Johannesen, Niels; Vella, John
In the wake of the financial crisis, a number of countries have introduced levies on bank borrowing with the aim of reducing risk in the financial sector. This paper studies the behavioral responses to the bank levies and evaluates the policy. We find that the levies induced banks to borrow less...... but also to hold more risky assets. The reduction in funding risk clearly dominates for banks with high capital ratios but is exactly offset by the increase in portfolio risk for banks with low capital ratios. This suggests that while the levies have reduced the total risk of relatively safe banks......, they have done nothing to curb the risk of relatively risky banks, which presumably pose the greatest threat to financial stability...
It was found that Monetary Policy Rate (MPR) and inflation rate exert a positive and significant impact on banks' loans for the period. For the deregulation era, the result showed that MPR and the exchange rate had significant impact on banks' loans and advances. While the former exerted a negative impact, the later had a ...
Full Text Available There is an urgent need to march towards “low - carbon economy”. Global challenges of diminishing fossil fuel reserves, climate change, environmental management and finite natural resources serving an expanding world population - these reasons mean that urgent action is required to transition to solutions which minimize environmental impact and are sustainable. We are at the start of the low - carbon revolution and those that have started on their low - carbon journey already are seeing benefits such as new markets and customers, improved economic, social and environmental performance, and reduced bills and risks. Green investment banks offer alternative financial services: green car loans, energy efficiency mortgages, alternative energy venture capital, eco - savings deposits and green credit cards. These items represent innovative financial products.
... 12 Banks and Banking 1 2010-01-01 2010-01-01 false Investment in bank premises. 5.37 Section 5.37... PROCEDURES FOR CORPORATE ACTIVITIES Expansion of Activities § 5.37 Investment in bank premises. (a) Authority... related investments, loans, or indebtedness, as described in paragraph (d)(1)(i) of this section. (c...
Silva Buston, C.F.
Abstract: This paper analyzes the net impact of two opposing effects of active risk management at banks on their stability: higher risk-taking incentives and better isolation of credit supply from varying economic conditions. We present a model where banks actively manage their portfolio risk by
Full Text Available Financial institutions present on the market become more attentive when they have to give loans to the agriculture sector. The lack of necessary guarantees the low profit registered in agricultural district, economy instability and other things had and continue to have a negative impact on the evolution of agricultural sector, this being seen as one with a high level of risk. Commercial banks use less own funds for lending to agriculture and especially when the loans are guaranteed from various funds, programs or foreign donor agencies. Farmers find it difficult to bank loans because of collateral amount required is too high. However, commercial banks in Moldova provide agricultural loans, thus increasing the economic efficiency of agriculture.
Beck, T.H.L.; Demirgüc-Kunt, A.; Martinez Peria, M.
Using data for 91 large banks from 45 countries, this paper finds few differences in the extent, type, and pricing of SME loans across foreign, private, and government-owned banks, even though different bank ownership types apply different lending technologies and have different organizational
This paper theoretically and empirically analyzes backtesting portfolio VaR with estimation risk in an intrinsically multivariate framework. For the first time in the literature, it takes into account the estimation of portfolio weights in forecasting portfolio VaR and its impact on backtesting. It shows that the estimation risk from estimating the portfolio weights as well as that from estimating the multivariate dynamic model of asset returns make the existing methods in a univariate framew...
Jerzy Piotr Gwizdała
Full Text Available The main purpose of this article is to present the role of risk in the activity of a commercial bank with particular reference to the global financial crisis. The introductory part presents the origins of economic crises, especially the contemporary crisis from 2007-2010, which began in the United States subprime mortgage market. Dating back to the 1831, considerations allow to undetstand the causes of the crises. Then the impact of the global financial crisis on the scale of the crediting activities of banks in Poland was analyzed, presenting a credit portfolio structure, with a particular focus on the structure of loans to households and enterprises. In the second part of the article the process of credit risk management was discussed, paying attention to the crucial role of the bank's credit policy, and the conditions and prospects of commercial bank credit activity development were specified. It presents also the criteria for the proper credit management, indicating as the optimal solution the development of the so-called „credit textbook”.
... Finance Board. The latter regulates banks within the Federal Home Loan Bank (FHLB) System. These Federal... participating lenders and allow time for computer system changes. Rural Development recognizes the general need... Deposit Insurance Corporation, the Federal Reserve System, the National Credit Union Administration, the...
Trofimov, Ivan D.; Md. Aris, Nazaria; Ying Ying, Jovena Kho
This study aims to examine the relationship between non-performing loans (NPLs) and commercial banks' performance in Malaysia, alongside other factors. It considers the effect of NPLs, cost efficiency and bank size on commercial banks' profitability by using panel data regression (Pooled OLS model), covering the period of 2010-2015. The findings of the study show that NPLs and cost efficiency have a significant negative relationship with commercial banks' performances in Malaysia. On the othe...
Benjamin Miranda Tabak
Full Text Available We use a mean-variance model to analyze the problem of decentralized portfolio management. We find the solution for the optimal portfolio allocation for a head trader operating in n different markets, which is called the optimal centralized portfolio. However, as there are many traders specialized in different markets, the solution to the problem of optimal decentralized allocation should be different from the centralized case. In this paper we derive conditions for the solutions to be equivalent. We use multivariate normal returns and a negative exponential function to solve the problem analytically. We generate the equivalence of solutions by assuming that different traders face different interest rates for borrowing and lending. This interest rate is dependent on the ratio of the degrees of risk aversion of the trader and the head trader, on the excess return, and on the correlation between asset returns.
Keiding, Tina Bering
. Portfolios baserer sig altovervejende på skrift-sproglig medieret kommunikation. Dette fokus på sprogligt medierede iagttagelser har uddannelsesmæssige og læringsmæssige implikationer, uanset om de tager form som mundtligt refleksivitet (fx i vejledningssituationer) eller skriftlig refleksivitet (fx i...... logbøger og portfolios). Viden er, hvad angår mennesker, ikke sproglig. I det øjeblik viden gives sproglig form - uanset om det er viden som forholdsvis let udtrykkes i sproglig form eller om det er viden som kun vanskeligt lader sig forme til sproglige udtryk - reduceres denne viden i forhold til dens......-intenderede konsekvenser, og at uddannelse og undervisning - modsat den etablerede portfolio-litteratur - må have blik for begge....
Fonseca, R. J.; Kuhn, D.; Rustem, B.
We present an approach to multi-stage international portfolio optimization based on the imposition of a linear structure on the recourse decisions. Multiperiod decision problems are traditionally formulated as stochastic programs. Scenario tree based solutions however can become intractable as the number of stages increases. By restricting the space of decision policies to linear rules, we obtain a conservative tractable approximation to the original problem. Local asset prices and foreign exchange rates are modelled separately, which allows for a direct measure of their impact on the final portfolio value.
Fonseca, R. J.; Kuhn, D.; Rustem, B.
We present an approach to multi-stage international portfolio optimization based on the imposition of a linear structure on the recourse decisions. Multiperiod decision problems are traditionally formulated as stochastic programs. Scenario tree based solutions however can become intractable as the number of stages increases. By restricting the space of decision policies to linear rules, we obtain a conservative tractable approximation to the original problem. Local asset prices and foreign exchange rates are modelled separately, which allows for a direct measure of their impact on the final portfolio value.
Andersen, Jesper Rank; Riis, Jens Ove; Mikkelsen, Hans
This paper will provide a preliminary introduction to the application of Agile Thinking in management of project portfolio and company development. At any point in time, companies have a crowd of development initiatives spread around the organisation and managed at different levels...... in the managerial hierarchy. They compete for resources and managerial attention, and they often take too long time - and some do not survive in the rapid changing context. Top man¬agers ask for speed, flexibility and effectiveness in the portfolio of development activities (projects). But which competencies...
Full Text Available This paper investigates credit allocation before and after the 2003 banking system reform in China. We find that relationships between earnings quality and new short-term loans, long-term loans and total loans in listed companies changed significantly after the banking system reform, especially in state-owned listed companies. Further investigation shows that due to the influence of rent-seeking, banks have eased the earnings requirements of non-state-owned listed companies. These findings enhance our understanding of the economic consequences of the banking system reform and of credit discrimination under the new regime.
Woodward, Helen; Nanlohy, Phil
The value of portfolios as an assessment tool is thoroughly researched and their use in education is well documented ( Woodward, 2000). Research on the introduction of digital portfolios is substantially based on general portfolio research; however, additional specific factors and features need to be considered. One of the inherent dangers with…
Kaplan, Samuel R.
Classic stock portfolio analysis provides an applied context for Lagrange multipliers that undergraduate students appreciate. Although modern methods of portfolio analysis are beyond the scope of vector calculus, classic methods reinforce the utility of this material. This paper discusses how to introduce classic stock portfolio analysis in a…
... System). We propose to strengthen our regulations governing investment management, interest rate risk... risk. These purposes do not authorize Farm Credit banks to accumulate investment portfolios for... to meet margin requirements for derivative transactions (collateral) when calculating the 35-percent...
Full Text Available This study aims to analyze the differences in financial performance of Bank BNI and other BUMN Banks by the measuring the ratio of Non Performing Loan (NPL, Loan to Deposit Ratio (LDR, Adecuacy Capital Ratio (CAR, Return on Assets (ROA and BOPO. The study was conducted by using descriptive analysis method. The results of this study explained that the performance NPL, LDR, and Bank BNI's CAR on average during the past eight semesters was still better than BUMN Banks on average, while the performance of ROA and BOPO remained below the average Revenues and Operating Expenses of Operational Income of Bank BUMN. The results also showed that all BUMN banks still showed good and healthy performance and in accordance with the provisions set by Bank Indonesia. This study also presented the strategy undertaken by Bank BNI to improve its financial performance, that is, the business synergy of all units unit, growth in good-quality assets, optimization of the customer engagement, strengthening the network and develop alliances, optimization of existing resources and simplification of processes, and enhancing customer experiences through improving processes and business models to digital banking. Keywords: Non-Performing Loans, Loan to Deposit Ratio, Capital Adequacy Ratio, Return on Assets, Revenues and Operating Expenses of Operational Income, Bank BNI, Bank BUMN.
Hansen, Jens Jørgen; Qvortrup, Ane; Christensen, Inger-Marie F.
Denne leder definerer indledningsvist begrebet portfolio og gør rede for anvendelsesmuligheder i en uddannelseskontekst. Dernæst behandles portfoliometodens kvalitet og effekt for læring og undervisning og de centrale begreber refleksion, progression og feedback præsenteres og diskuteres. Herefter...
... institutions, directly or in partnership with other market participants, to purchase loans of failed banks from... fail, farmers, ranchers, producers or harvesters of aquatic products, and cooperatives can be left... others have asked whether System institutions, directly or in partnership with other market participants...
Full Text Available Negli ultimi anni , la politica monetaria italiana è stata basata sempre più sui controlli amministrativi . Tra le tesi , i più significativi sono i limiti della crescita e vincoli della composizione del portafoglio. Questo articolo ha esaminato l' effetto dei limiti di crescita , ossia il loro effetto , da un punto di vista geografico della struttura e sul sul bancario italiano .In recent years, Italian monetary policy has become increasingly based on administrative controls. Among theses, the most important are the limits of growth and constraints of the portfolio composition. The former impose a maximum growth rate of total loans in lire on banks, while the latter obliges them to invest a given amount of the increases in deposits in securities with specific characteristics. The present article examines a side effect of growth limits, namely their effect from a geographical point of view and on the structure of the Italian banking system. In particular, the author shows that the occurrence of growth ceilings for a given bank is greater the more rapid the increase in its deposits and the smaller the geographical area in which it operates. JEL: E51, E52, G21
I. А. Kiseleva
Full Text Available The article notes that the task of the investor's risk management is to, on the one hand, as much as possible to strive to achieve the criterion of risk level, and on the other hand, in any case not exceed it. Since the domestic theory of risk management is under development, the problem of the optimal ratio of "risk-income" becomes now of particular relevance. This article discusses the different distribution areas of the private investor in order to obtain the maximum profit. The analysis showed us the overall economic and political system of the country, as well as the legislative provision of guarantees to the investor. To obtain sufficient income and reduce losses it is important to maintain the optimum value found between the amount of the investor's risk and capital transactions. Model of optimal placement of funds led to the conclusion about inexpediency strong increase in the diversification of the investment portfolio (more than 10 different types of assets in the portfolio, since it increases the complexity of its practical form, while the portfolio characteristics are improved significantly. It is concluded that it is impossible to increase revenue without increasing the risk or reduce risk without reducing income. The analysis shows that there is no single best asset portfolio. It is impossible to increase revenue without increasing the risk or reduce risk without reducing income. Possible combination of the "riskincome" will depend on the objective function. Most diversified and bringing the best return per unit of risk, is a portfolio that contains the most risky assets.
... business activities. 980.2 Section 980.2 Banks and Banking FEDERAL HOUSING FINANCE BOARD NEW FEDERAL HOME LOAN BANK ACTIVITIES NEW BUSINESS ACTIVITIES § 980.2 Limitation on Bank authority to undertake new business activities. No Bank shall undertake any new business activity except in accordance with the...
... 12 Banks and Banking 1 2010-01-01 2010-01-01 false Location of a national bank conducting electronic activities. 7.5008 Section 7.5008 Banks and Banking COMPTROLLER OF THE CURRENCY, DEPARTMENT OF THE... it physically maintains technology, such as a server or automated loan center, in that state, or...
Sokolov, Andrey; Webster, Rachel; Melatos, Andrew; Kieu, Tien
High-value transactions between banks in Australia are settled in the Reserve Bank Information and Transfer System (RITS) administered by the Reserve Bank of Australia. RITS operates on a real-time gross settlement (RTGS) basis and settles payments and transfers sourced from the SWIFT payment delivery system, the Austraclear securities settlement system, and the interbank transactions entered directly into RITS. In this paper, we analyse a dataset received from the Reserve Bank of Australia that includes all interbank transactions settled in RITS on an RTGS basis during five consecutive weekdays from 19 February 2007 inclusive, a week of relatively quiescent market conditions. The source, destination, and value of each transaction are known, which allows us to separate overnight loans from other transactions (nonloans) and reconstruct monetary flows between banks for every day in our sample. We conduct a novel analysis of the flow stability and examine the connection between loan and nonloan flows. Our aim is to understand the underlying causal mechanism connecting loan and nonloan flows. We find that the imbalances in the banks' exchange settlement funds resulting from the daily flows of nonloan transactions are almost exactly counterbalanced by the flows of overnight loans. The correlation coefficient between loan and nonloan imbalances is about -0.9 on most days. Some flows that persist over two consecutive days can be highly variable, but overall the flows are moderately stable in value. The nonloan network is characterised by a large fraction of persistent flows, whereas only half of the flows persist over any two consecutive days in the loan network. Moreover, we observe an unusual degree of coherence between persistent loan flow values on Tuesday and Wednesday. We probe static topological properties of the Australian interbank network and find them consistent with those observed in other countries.
Full Text Available The aim of this research paper is to examine the Jordanian banks using financial soundness indicators. This is to establish if Jordanian banks were affected because of the 2007/2008 financial crisis and determine the underlying reasons. The research paper was conducted on 25 banks in Jordan listed in the countries securities exchange. The research methodology used consisted of examining the banks financial records in order to derive four crucial Basel III ratio such as the capital adequacy ratio, the leverage ratio, the liquidity ratio and finally the Total Provisions (As % Of Non-Performing Loans %. The results revealed that out of the four hypotheses under examination Jordan Banks do not meet Basel financial Indicators for Capital Adequacy Ratio, Jordan Banks does not meet Basel financial Indicators for Liquidity Ratio , Jordan Banks do not meet Basel financial Indicators for Leverage Ratio and Jordan Banks do not meet Basel financial Indicators for Total Provisions (As % Of Non-Performing Loans ratio. Only one hypothesis was accepted based on the research outcomes. The rest of the hypothesis was rejected since the average trend line did not go below the Basel III required ratio level. The general outcome of the research revealed that Jordanian banks were not affected significantly by the financial crisis.
Full Text Available This study examines the factors used by the banks to determine the outcome of loan applications of Small and Medium Enterprises SMEs in Bhutan. Inaccessibility to financing is one of the biggest challenges faced by the Bhutanese SMEs. This exploratory study is built on in-depth interview of 6 credit officials to understand the lending behaviour of banks towards SMEs. Thematic Analysis revealed that the bank loan accessibility was a function of firm and owner characteristics. The collateral and internal finance was found to be vital in determining SMEs accessibility to bank loans. SMEs inadequate financial information was a serious problem for the banks. Firm age size and industry sector had a positive correlation with bank loan accessibility. The age and educational qualification of borrowers were also found to have a positive relationship while the gender of the owner did not have any effect on bank loan accessibility.
... supplying information that competitors could use to compete with companies in the United States. DATES... Loan or Financial Guarantee in Excess of $100 Million: AP087913XX AGENCY: Export-Import Bank of the... Bank has received an application for final commitment for a long-term loan or financial guarantee in...
... the purpose of the transaction: To support the export of General Electric turbines to the United Arab... Loan or Financial Guarantee in Excess of $100 Million: AP085996XX AGENCY: Export-Import Bank of the... Bank has received an application for final commitment for a long-term loan or financial guarantee in...
Full Text Available In knowledge-based economy, strategic innovation portfolio management becomes more and more important and critical factor of enterprise's success. Value creation for all the participants in value chain is more successful if it is based on efficient resource allocation and improvement of innovation performances. Numerous researches have shown that companies with best position on the market found their competitiveness on efficient development and exploitation of innovations. In decision making process, enterprise's management is constantly faced with challenge to allocate resources and capabilities as efficiently as possible, in both short and long term. In this paper authors present preliminary results of realized empirical research related to strategic innovation portfolio management in ten chosen enterprises in Serbia. The structure of the paper includes the following parts: theoretical background, explanation of research purpose and methodology, discussion of the results and concluding remarks, including limitations and directions for further research.
Takada, Hellinton H.; Stern, Julio M.
The first portfolio risk diversification strategy was put into practice by the All Weather fund in 1996. The idea of risk diversification is related to the risk contribution of each available asset class or investment factor to the total portfolio risk. The maximum diversification or the risk parity allocation is achieved when the set of risk contributions is given by a uniform distribution. Meucci (2009) introduced the maximization of the Rényi entropy as part of a leverage constrained optimization problem to achieve such diversified risk contributions when dealing with uncorrelated investment factors. A generalization of the risk parity is the risk budgeting when there is a prior for the distribution of the risk contributions. Our contribution is the generalization of the existent optimization frameworks to be able to solve the risk budgeting problem. In addition, our framework does not possess any leverage constraint.
Elley, Tina Ninka
In Denmark the Biomedical Laboratory Scientist programme lasts for 3½ years, divided into 14 modules of 10 weeks. Every module concludes with an exam, which can be very stressful for the students. A survey was made among the students, confirming this. How can we change some of the exams in order...... to minimize the students' stress level? Then the pedagogical considerations started – where and how to do this? The conclusion was to work with the portfolio format at module 6 and module 7 and make it the exam form, as it was possible to divide the expected learning outcome for the two modules into topics...... from the clinical part. The two topics are weighted according to the distribution of ECTS points between theory and clinic. We implemented the portfolio format in November 2012, and the evaluations from the students have shown that the format is good; the students get less stressed at the exam...
Full Text Available This study examines the effect of foreign bank presence on the behaviour of domestic banks by using the annual data of 37 commercial banks comprising of 7 foreign and 30 domestic banks for the time period of 2007 to 2011. We investigated how net interest margin, return on assets, overhead costs, cost to income and nonperforming loans are effected by the foreign bank presence. We have used panel regression analysis employing bank specific fixed effect model. As a developing country case, the results suggest that the increase in foreign bank share effects the interest margins and profitability of domestic banks in a decreasing manner. It wouldn't be erroneous to express that foreign banks have a positive effect on the competitive environment of domestic banks increasing overall banking standard in Pakistan, the licensing policies should be further liberalized to let new entrants further improve the domestic financial intermediation system.
This paper reports that the need to manage U.K. North Sea acreage portfolios arises from fragmentation of holdings and complex partnerships. This management has generated friendly rationalization deals motivated by differences in perception of values and aimed at building up heartlands and balancing cash-flow forecasts. The business process includes identifying, evaluating, and negotiating deals. The economist plays a central role within the evaluation team and supports the negotiators
Full Text Available The new Civil Code maintains, mainly, the stipulations of the Civil Code of 1865 regarding loan contracts, in its both forms (the loan for use and the loan for consumption. As a variety of the loan for consumption, a few new specific stipulations were included, regarding the loan with interest.This research is focused on the current regulation of the loan contract, including a series of changes, of which the most important refers to: the loan promise, the risk regarding the asset placed in a bailment, property transfer and the risk in the loan for consumption contract, loan return and the interest regime. Also, what kept my attention is the significant changes brought to the interest regime by the Law for applying the Civil Code, included for now in Chapter I of the O.G. no. 13/2011, regarding the legal compensatory interest and the penalty interest for financial duties, as well as for the regulation of certain financial-fiscal measures in the banking department.
Full Text Available It is observed that the number of Indonesia’s domestic investor who involved in the stock exchange is very less compare to its total number of population (only about 0.1%. As a result, Indonesia Stock Exchange (IDX is highly affected by foreign investor that can threat the economy. Domestic investor tends to invest in risk-free asset such as deposit in the bank since they are not familiar yet with the stock market and anxious about the risk (risk-averse type of investor. Therefore, it is important to educate domestic investor to involve in the stock exchange. Investing in portfolio of stock is one of the best choices for risk-averse investor (such as Indonesia domestic investor since it offers lower risk for a given level of return. This paper studies the optimization of Indonesian stock portfolio. The data is the historical return of 10 stocks of LQ 45 for 5 time series (January 2004 – December 2008. It will be focus on selecting stocks into a portfolio, setting 10 of stock portfolios using mean variance method combining with the linear programming (solver. Furthermore, based on Efficient Frontier concept and Sharpe measurement, there will be one stock portfolio picked as an optimum Portfolio (Namely Portfolio G. Then, Performance of portfolio G will be evaluated by using Sharpe, Treynor and Jensen Measurement to show whether the return of Portfolio G exceeds the market return. This paper also illustrates how the stock composition of the Optimum Portfolio (G succeeds to predict the portfolio return in the future (5th January – 3rd April 2009. The result of the study observed that optimization portfolio using Mean-Variance (consistent with Markowitz theory combine with linear programming can be applied into Indonesia stock’s portfolio. All the measurements (Sharpe, Jensen, and Treynor show that the portfolio G is a superior portfolio. It is also been found that the composition (weights stocks of optimum portfolio (G can be used to
Full Text Available The purpose of the present study is to identify the factors affecting the non-performing loans rate (NPL of Eurozone’s banking systems for the period 2000-2008, just before the beginning of the recession. In our days, Eurozone is in the middle of an unprecedented financial crisis, calling into question the soundness of the banking systems of European countries. Looking at both macro-variables (e.g. annual percentage growth rate of gross domestic product, public debt as % of gross domestic product, unemployment and micro-variables (e.g. loans to deposits ratio, return on assets, return on equity, we investigate which factors determine NPL on aggregate level. Overall, our findings reveal strong correlations between NPL and various macroeconomic (public debt, unemployment, annual percentage growth rate of gross domestic product and bank-specific (capital adequacy ratio, rate of nonperforming loans of the previous year and return on equity factors.
Gabriela Victoria ANGHELACHE
Full Text Available In the mid-twentieth century, under an unprecedented growth of the business of trading in securities, the need to provide a modern framework for assessing the performance of portfolios of financial instruments was felt. To that effect, it is noted that over this period, more and more economists have attempted to develop statistical mathematical models that ensure the evaluation of profitability and portfolio risk securities. These models are considered to be part of "the modern portfolio theory".
While portfolios have seen an unprecedented surge in popularity, they have also become the subject of controversy: learners often perceive little gain from writing reflections as part of their portfolios; scholars question the ethics of such obligatory reflection; and students, residents, teachers and scholars alike condemn the bureaucracy surrounding portfolio implementation in competency-based education. It could be argued that mass adoption without careful attention to purpose and format may well jeopardize portfolios' viability in health sciences education. This paper explores this proposition by addressing the following three main questions: (1) Why do portfolios meet with such resistance from students and teachers, while educators love them?; (2) Is it ethical to require students to reflect and then grade their reflections?; (3) Does competency-based education empower or hamper the learner during workplace-based learning? Twenty-five years of portfolio reveal a clear story: without mentoring, portfolios have no future and are nothing short of bureaucratic hurdles in our competency-based education programs. Moreover, comprehensive portfolios, which are integrated into the curriculum and much more diverse in content than reflective portfolios, can serve as meaningful patient charts, providing doctor and patient with useful information to discuss well-being and treatment. In this sense, portfolios are also learner charts that comprehensively document progress in a learning trajectory which is lubricated by meaningful dialogue between learner and mentor in a trusting relationship to foster learning. If we are able to make such comprehensive and meaningful use of portfolios, then, yes, portfolios do have a bright future in medical education.
Many IT companies are running project simultaneously. In order to achieve the best results, they have to group to the project in portfolios, and to use specific software that helps to manage them. Project portfolio management applications have a high degree of complexity and they are very important for the companies that are using it. This paper focuses on some characteristics of the testing process for project portfolio management applications
Full Text Available Many IT companies are running project simultaneously. In order to achieve the best results, they have to group to the project in portfolios, and to use specific software that helps to manage them. Project portfolio management applications have a high degree of complexity and they are very important for the companies that are using it. This paper focuses on some characteristics of the testing process for project portfolio management applications
Literature concerning the institutional use of options indicates that the main purpose of option trading is to provide investors with the opportunity to create return distributions previously unavailable, considering that options provide the means to manipulate portfolio returns. In such a context, this study intends to analyse the returns of insured portfolios generated by hedging strategies on underlying stock portfolios. Because dynamic hedging is too expensive, we have hedged the stock po...
Seval MUTLU ÇAMOĞLU
Full Text Available Cash loans used by sectors are important indicators to observe the situations of economics activities, especially in economic crises periods. This study focuses on the evolution and behavior of the credit market in Turkish financial sector the periods of 1999 – 2010. Recently, the perception of the credit market’s importance in understanding many macroeconomic and financial problems has been changing. The main reason is the acknowledgment of the credit market as a key factor in understanding the transmission channels and of monetary policy. Turkish credit market is still in the stage of growth. In order to analyse the behavior of cash loans by economics activity is used Granger causality test and Johansen cointegration analysis. According to the causality analysis, the findings indicate bilateral relationship between reel credit stock and cash loans used by real estate and building sector. Morever, there are statistically significant long-run relationship between reel credit stock and cash loans used by some important sector in Turkey.
banks invest more in interest bearing assets, mainly loans, to fully utilize their revenue generating capacity. The Ethiopian government is also recommended to balance its desire to control inflation with the need to maintain lasting viability of the banking industry. Keywords: Ratio analysis, financial performance, Bank ...
Broll, Udo; Wahl, Jack E.
We study the implications of the value at risk concept for the bank's optimum amount of equity capital under credit risk. The market value of loans is risky and lognormally distributed. We show that the required equity capital depends upon managerial and market factors. Furthermore, the bank's equity and asset/liability management has to be addressed simultaneously by bank managers.
This paper investigates whether financial advisers add value to individual investors portfolio decisions by comparing portfolios of advised and self-directed (execution-only) Dutch individual investors. The results indicate significant differences in characteristics and portfolios between these
... and level of earnings; investment, loan portfolio, and other concentrations of credit; certain risks... adjusted carrying value of the investment will be excluded from risk-weighted assets in calculating the..., such as the level of risk of the particular investment or portfolio of investments, the risk management...
... 12 Banks and Banking 6 2010-01-01 2010-01-01 false Funding and discount relationships between Farm... Relationship § 614.4130 Funding and discount relationships between Farm Credit Banks or agricultural credit... discount loans for, an OFI, as defined in § 611.1205 of this chapter, except pursuant to a general...
... EXPORT-IMPORT BANK Sub-Saharan Africa Advisory Committee of the Export-Import Bank of the United States (Ex-Im Bank); Notice of Open Special Meeting SUMMARY: The Sub-Saharan Africa Advisory Committee... financial commitments in Sub- Saharan Africa under the loan, guarantee, and insurance programs of the Bank...
Ioana Florentina Savu
Full Text Available In the current Romanian economic climate banks will have to develop a series of initiativesin order to reduce environmental impact. The article is intended to define banks ecological behaviorand establish the role of non – governmental organizations and banking products in bank’s ecologicalmanagement. It focuses on projects that banks can undertake in partnership with environmentalorganizations such as paper recycling, forestationwith employees - volunteers from the banks,"canvas bag", building solar panels and "sustainability tour". For an appropriate environmentalbehavior, banks should encourage customers to use banking products and services in a friendlyenvironment, opting for green cards, online banking, electronic bank statements, green mortgages,green home equity loans, green commercial buildingsloans or green car loans.
Understanding the reasons of the present financial problems lies In understanding the substance of fractional reserve banking. The substance of fractional banking is in lending more money than the bankers have. Banking of partial reserves is an alternative form which links deposit banking and credit banking. Fractional banking is causing many unfavorable economic impacts in the worldwide system, specifically an inflation.
Insolvency is one of the most often used actions in the economic intern environment. This can be used by companies as a tool for obtaining the restructuring of bank loans or to provide shelter to enforcement. For banks, that means serious problems because they are forced to fully provisioned credit granted to companies that enter into insolvency, even if the rates are paid to date or with small delays, any guaranties was held. In this situation, for banks in Romania, the perception of risk is...
... the depreciated replacement value of the property being insured or the amount of the loan. Hazard..., aircraft, vehicle, marine, smoke, builder's risk, public liability, property damage, flood or mudslide, or... pledging the IRP revolving fund, including its portfolio of investments derived from the proceeds of the...
Søberg, Peder Veng
As a result of an inquiry concerning how to evaluate IP (intellectual property) portfolios in order to enable the best possible use of IP resources within organizations, an IP evaluation approach primarily applicable for patents and utility models is developed. The developed approach is useful...... in order to discuss, visualize and align IPR issues with different management functions within the organization. Unlike existing approaches the present approach takes into account such value indicators as remaining lifetime, geographical range, broadness of scope and product strategic considerations...
Banks, J.; Smith, S.
This paper presents a detailed analysis of the composition of household portfolios, usingboth aggregate and micro-data. Among the key findings are that:â€¢ Most household wealth is held in the form of housing and pensions. Over time, there hasbeen a shift away from housing towards financial assets, driven largely by the growth inlife and pension funds.â€¢ Liquid financial wealth (excluding life and pension funds) is not predominantly held inrisky form. By far the most commonly held asset is a...
Full Text Available This paper investigates the determinants of loan maturity of small and medium enterprises (SMEs in the context of Visegrad countries: Czech Republic, Slovak Republic, Poland, and Hungary. The data of instead of for this paper was obtained from the Business Environment and Enterprise Performance Survey (BEEPS, which is a joint project of the European Bank for Reconstruction and Development and the World Bank. By using a binary logistic model, we have found that loan maturity is shorter for older and mature firms, firms owned by female and firms experiencing a shortage of liquidity. At the same time, we have also found that firms having concentrated ownership structure and more tangible assets can borrow for a longer period. In addition to that, we have found evidence that loan maturity is longer for the firms located closer to a bank branch. We also provide empirical support for the assumption that bank low competition is associated with longer maturity. From the obtained results, we may recommend SMEs to borrow from banks that are within their vicinity since this may increase the maturity of loans. Policy makers are recommended to implement policies so that to alleviate gender-related discrimination and take initiatives to moderate the level of competition at this market.
Tierney, Robert J.; Clark, Caroline; Fenner, Linda; Herter, Roberta J.; Simpson, Carolyn Staunton; Wiser, Bert
Presents a discussion between two educators of the history, assumptions, tensions, and possibilities surrounding the use of portfolios in multiple classroom contexts. Includes illustrative commentaries that offer alternative perspectives from a range of other educators with differing backgrounds and interests in portfolios. (RS)
Hyldahl, Kirsten Kofod; Sams, Pernille; Egelund, Karen Stine
Nærværende artikel præsenterer resultaterne af udviklingsprojektet ”Portfolio og æstetik” på pædagoguddannelsen i Hjørring. Projektet har til formål, gennem æstetisk formsprog, at stilladsere og fastholde de studerendes læreprocesser samt udvikle og implementere portfolio i studieaktiviteter på...
This paper studies the empirical relevance of precautionary and other motives for household portfolio behaviour using recent panel data from the Netherlands, Dutch households' portfolios exhibit low degrees of risk taking and diversification. It is possible that this is the outcome of a rational,
Beck, T.H.L.; Demirgüc-Kunt, A.; Martinez Peria, M.
Using data for 91 large banks from 45 countries, this paper finds that foreign, domestic private, and government-owned banks use different lending technologies and organizational structures for SME financing. The extent, type, and pricing of SME loans, however, is not strongly correlated with
Bogolubov, Nikolai N. Jr.; Kyshakevych, Bohdan Yu.; Blackmore, Denis; Prykarpatsky, Anatoliy K.
A competing market model with a polyvariant profit function that assumes 'zeitnot' stock behavior of clients is formulated within the banking portfolio medium and then analyzed from the perspective of devising optimal strategies. An associated Markov process method for finding an optimal choice strategy for monovariant and bivariant profit functions is developed. Under certain conditions on the bank 'promotional' parameter with respect to the 'fee' for a missed share package transaction and at an asymptotically large enough portfolio volume, universal transcendental equations - determining the optimal share package choice among competing strategies with monovariant and bivariant profit functions - are obtained. (author)
... standard loan amortization tables. The third rule is that subdivision (2) is not applicable from the time... $750,000 from a bank. X guarantees the loan which is for 15 years at 5% interest and is payable in..., including the terms of the employer's articles of incorporation, unless so required by applicable state law...
... of agricultural real estate loans (guaranteed securities); and (2) To issue debt obligations (which... be read for ``Farm Credit securities,'' and ``Farmer Mac'' shall be read for ``Farm Credit banks... FARM CREDIT ADMINISTRATION 12 CFR Part 615 Funding and Fiscal Affairs, Loan Policies and...
Still, Susanne; Kondor, Imre
The optimization of large portfolios displays an inherent instability due to estimation error. This poses a fundamental problem, because solutions that are not stable under sample fluctuations may look optimal for a given sample, but are, in effect, very far from optimal with respect to the average risk. In this paper, we approach the problem from the point of view of statistical learning theory. The occurrence of the instability is intimately related to over-fitting, which can be avoided using known regularization methods. We show how regularized portfolio optimization with the expected shortfall as a risk measure is related to support vector regression. The budget constraint dictates a modification. We present the resulting optimization problem and discuss the solution. The L2 norm of the weight vector is used as a regularizer, which corresponds to a diversification 'pressure'. This means that diversification, besides counteracting downward fluctuations in some assets by upward fluctuations in others, is also crucial because it improves the stability of the solution. The approach we provide here allows for the simultaneous treatment of optimization and diversification in one framework that enables the investor to trade off between the two, depending on the size of the available dataset.
Still, Susanne; Kondor, Imre
The optimization of large portfolios displays an inherent instability due to estimation error. This poses a fundamental problem, because solutions that are not stable under sample fluctuations may look optimal for a given sample, but are, in effect, very far from optimal with respect to the average risk. In this paper, we approach the problem from the point of view of statistical learning theory. The occurrence of the instability is intimately related to over-fitting, which can be avoided using known regularization methods. We show how regularized portfolio optimization with the expected shortfall as a risk measure is related to support vector regression. The budget constraint dictates a modification. We present the resulting optimization problem and discuss the solution. The L2 norm of the weight vector is used as a regularizer, which corresponds to a diversification 'pressure'. This means that diversification, besides counteracting downward fluctuations in some assets by upward fluctuations in others, is also crucial because it improves the stability of the solution. The approach we provide here allows for the simultaneous treatment of optimization and diversification in one framework that enables the investor to trade off between the two, depending on the size of the available dataset.
An excellent demonstration of how meaningful and valuable conferences devoted to the topic of project and portfolio management in the pharmaceutical industry can be, was given at an event organized in Barcelona, September 2008. Thus, over this 2-day meeting the delegates were updated on the state of the art in this wide-reaching area from speakers representing an array of companies; from small, relatively new players, via mid-sized, to established large and big pharmas. One common theme that emerged was the importance of assessing the value of drug projects as correctly as possible, especially under the current financial climate and the many challenges facing the industry. Furthermore, experiences from constructing portfolios with the aim to minimize risk and maximize return on investment were shared alongside mathematical approaches to obtain the data required for this purpose and accounts of the pleasures and hardships working in a global context and in partnership constellations. Copyright 2009 Prous Science, S.A.U. or its licensors. All rights reserved.
Full Text Available In this paper we aim to explore how the type of bank ownership - local private banks, government-owned banks (public banks and foreign banks - can affect relationship lending to small and medium enterprises (SMEs by using a unique data set from Bangladeshi banking sector. We found that private banks differ from government-owned and foreign banks in terms of relationship lending and credit facilities to SMEs. More specifically, our results suggest that unlike government and foreign banks, private banks do consider soft information from relationship lending while setting up the loan spread to SMEs. We can also confirm that exclusive banking relationship or repeated banking with private banks can soften credit conditions (loan maturity and covenants. Moreover, we found empirical evidence that banking relationship is important for private banks in terms of SME credit risk evaluation. Finally, as according to our expectation, the results confirm that regardless of prior relationship, private banks are more depended on collateral-based lending to SMEs than government-owned or foreign banks.
Dr. Irwan Ch
Full Text Available This study aimed to analyze the bank rating in terms of differences the financial performance between the Regional Development Banks and Non-Foreign Exchange Commercial Banks. It is consist of capital adequacy asset quality profitability Return On Asset ROA Return on Equity ROE Net Interest Margin NIM and Liquidity Loan to Deposit Ratio. The fulfillment of capital adequacy and asset quality of the bank groups did not differed significantly while in terms of profitability and liquidity there are significant differences. The earning difference is more likely due to the Regional Development Banks sources of funds for the implementation of the Local Government Cash Holder function as the Provincial Government and District City. The difference of liquidity are showed by the performance of Regional Development Banks and the Non-Foreign Exchange Commercial Banks in lendingfinancing whereas the two groups of banks on average are still relatively low in lending.
... to the bank. The corporation would issue to the bank a guaranty of the loan and hold the purchased... a national securities exchange and therefore qualifies as “margin stock” under this part. (c) A... of the loan in the event the borrower should default, is lending his credit to the borrower. In the...
Full Text Available After the year 1990, bashfully at first, but then more and more prominently, the countries of Central andEastern Europe have become major loan recipients from foreign banks, either cross-border, or local through opensubsidiaries in the emerging European countries. The Romanian banking system continues to be among the mostdynamic economic areas in Romania. Further on characterized by a relatively low level of financial intermediation,the Romanian banking market is considered to have potential for the possible buyers, especially in the crisis periodwhen many small banks looked for a merger with another small or medium bank for consolidation reasons. Althoughthe Romanian banking system faced crisis pretty well comparative with the rest of the world countries, if we considerits equity, its profits kept on decreasing every year and the rate of the non-performing loans increased.
Degryse, H.A.; Havrylchyk, O.; Jurzyk, E.; Kozak, S.
We employ a unique data set containing bank-specific information to explore how foreign bank entry determines credit allocation in emerging markets. We investigate the impact of the mode of foreign entry (greenfield or takeover) on banks’ portfolio allocation to borrowers with different degrees of
S.M. Murshed (Syed); I.A. Robin (Iftekhar Ahmed)
textabstractThis article explores the consequences of financial liberalization policy on the banking sector in Bangladesh. Following a motivating portfolio selection theor-etical model on the impact of liberalization, it applies time series techniques with annual banking sector data for the period
Ibendahl, Gregory A.
This paper uses Federal LandBank Data to examine loan characteristics and farm financial characteristics. Given that farm financial characteristics and loan interest rates can change, this paper examines if current farm financial characteristics can predict the current loan interest rate. In addition, this paper tests to see if farm profitability can be predicted using two debt financial characteristics. Results indicate that interest rates and profitability are not very predicatable based on...
Wang, Marian; Supiano, Beckie; Fuller, Andrea
As the cost of college has spiraled ever upward and median family income has fallen, the loan program, called Parent PLUS, has become indispensable for increasing numbers of parents desperate to make their children's college plans work. Last year the government disbursed $10.6-billion in Parent PLUS loans to just under a million families. Even…
State Infrastructure Banks (SIBs) are intended to complement traditional transportation grant programs and provide states with increased flexibility to offer many types of financial assistance, such as loans and subsidized interest rates, and provide...
Full Text Available Loans make up the bulk of a bank’s assets, and thus credit risk is the most significant risk for commercial banks in Kosovo and throughout the world. Despite its complexity, effective management of credit risk is a prerequisite for the success of a bank and the banking system in general. A special role in this aspect is played by the separation of reserves to cover the risk of failure to repay the loan or in cases of nonfulfilment of contractual obligations by the loan recipient. Therefore, this research aims to address this issue and analyses the credit risk management of the banking system of the Republic of Kosovo in general and the effects of separation of reserves for loan losses in particular.
Full Text Available Abstract: Effect of Banking Service Quality (BSQ Dimensions towards Bank Customer Satisfaction. This study aims to determine the effect of Banking Service Quality (BSQ to the customer satisfaction of BPD Bank in DIY. This research is a survey research with a sample of 1.536 respondents. The sample was taken by purposive sampling technique. Data collection instrument was questionnaires and analyzed using multiple regression. The results showed that six dimensions of BSQ simultaneously gave positive and significant impact on customer satisfaction. If seen from each dimension individually; the highest influence came from the reliability dimension and the lowest dimensions were from Access and Services Portfolio dimensions. For the national servants (PNS customers, the BSQ six dimensions simultaneously gave a positive and significant impact on customer satisfaction; the highest influence came from the reliability dimension and the lowest was from portfolio services dimension. For the non national servants, the BSQ six dimensions simultaneously gave a positive and significant impact on customer satisfaction; the highest influence came from the reliability dimension and the lowest was from portfolio services dimension. Keywords: Banking Service Quality, Customer Satisfaction Abstrak: Pengaruh Dimensi Banking Service Quality (BSQ Terhadap Kepuasan Nasabah Bank. Penelitian ini bertujuan untuk mengetahui pengaruh Banking Service Quality (BSQ terhadap kepuasan nasabah Bank BPD di DIY. Penelitian ini merupakan penelitian survey dengan sampel secara keseluruhan berjumlah 1.536 responden. Sampel diambil dengan teknik purposive sampling. Instrumen pengumpulan data berupa kuesioner dan dianalisis dengan regresi ganda. Hasil penelitian menunjukkan keenam dimensi BSQ secara simultan berpengaruh positif dan signifikan terhadap kepuasan nasabah, jika dilihat tiap dimensi maka pengaruh tertinggi berasal dari dimensi keterhandalan dan terendah dari dimensi
The thesis is focused on introduction of Islamic banking system. Morover part of the work is devoted to a detailed description of the history of Islamic banking, on explanation of the principles on which the banking system is based. Also are analyzed in detail the basic Islamic banking products. And at the end are presented the advantages and disadvantages of the Islamic banking system.
Low participation of smallholder farmers in agricultural loans, despite efforts by governments and NGOs to make funds available for agricultural growth and development, has remained a matter of concern in Nigeria. The study analysed smallholder food crop farmers' participation in Bank of Agriculture loan (BOA) scheme in ...
To limit credit risk, all the 3 banks assess the customer's credit worthiness with the help of 5Cs namely: Character, Capacity, Capital, Collateral and. Conditions. This indicates that each type of loan application must go through loan description process, preferred maturity period, indication on maximum allowable amount, and ...
Full Text Available There is an assertion that the participation of foreign banks in emerging markets is often thought to improve overall bank soundness. Therefore, if the share of foreign banks in a national banking system is large, the system will quickly overcome both financial or currency crises, and quickly recover itself. Since Turkey has been experienced mentioned crises, the aim of this study is to reveal if the assertion is valid for Turkey. Our expectation from the study using VAR method is to reach a conclusion that countries with large market share of foreign banks have safely passed the crises by virtue of foreign banks best management policies. The test results indicate that foreign banks have more positive effect for helping TBS capital structure; foreign bank participation did not cause any decline in loans and last one, after crisis, existence of foreign banks worsens TBS liquidity in interest and exchange rate shocks.
Florin Alexandru LUCA
Full Text Available The financial crisis has highlighted the importance of liquidity risk for the banking system. Therefore, this study focuses on identifing the determinants of liquidity of Romanian banks. The data cover the period from 2006 to 2013 and take into account only bank-specific factors. The empirical study was applied on 16 Romanian banks and based on previous studies and uses different liquidity ratios, encompassing different points of view on liquidity. Regarding the explanatory variables considered in this analysis, they include various items of internal character concerning: capital adequacy, asset quality, profitability, efficiency of financial intermediation and the size of the banks. The results of our regression analysis indicate that bank liquidity is positively related to capital adequacy of banks and bank profitability and negatively related to the rate of non-performing loans, net interest margin and the size of the bank.
Full Text Available Central Bank of Indonesia with dual banking system – i.e Shariah and Conventional Bank – keep on developing system that considered as an answer to generate the national economic growth. One of the banking activities that emphasized by the Central Bank of Indonesia is fund distribution through either conventional bank credit or shariah bank fi nancing. Having the Experimental Economic Approach based on Induced Value Theory and employing ANOVA, this paper found that shariah bank musharakah fi nancing system would come up with higher profi t opportunity compare to conventional credit system. One main reason is that musharakah fi nancing in shariah bank applies profi t and lost sharing (PLS scheme so that will not be a burden to the customer when he fi nd low profi t.Keywords: Credit Loan, Musharakah Financing, Induced Value Theory, Experimental Economic Approach, Analysis of Variance (ANOVA.
Soedarmono , Wahyoe; Tarazi , Amine
From a sample of commercial banks in Asia Pacific over the 1994-2009 period, this study highlights that banks in less competitive markets exhibit lower loan growth and higher instability. Such instability is further followed by a decline in deposit growth, suggesting that Asian banks are also subject to indirect market discipline mechanisms through bank market structure. This study therefore sheds light on the importance of enhancing bank competition to overcome bank risk and strengthen finan...
Podpiera, Jiří; Weill, L.
Roč. 60, č. 4 (2010), s. 294-306 ISSN 0015-1920 Institutional research plan: CEZ:AV0Z70850503 Keywords : banking sector * risk-taking * portfolio Subject RIV: AH - Economics Impact factor: 0.278, year: 2010 http://journal.fsv.cuni.cz/storage/1189_str_294_306_-_weill-podpiera.pdf
Hansen, Lars Kristian; Kræmmergaard, Pernille
As public organizations increasingly rely on IT-enabled development to provide faster cycle times and better services, IT Project Portfolio Management (IT PPM) has become a high priority issue. This research adopts engaged scholarship to investigate IT PPM practices within a large local government...... on the theory’s distinction between different modes of control five problems in control is identified: (1) weak accountability processes between the political and the administrative level, (2) weak accountability processes between director level and the IT executives, (3) IT projects established on incomplete...... information about internal recourses, (4) Lack of operational goals to hold IT projects accountable, (5) No account of actual IT project costs. These results may be used to inform further research into IT PPM and to help managers improve IT PPM practices in public organizations in their effort of increase...
Hansen, Lars Kristian; Kræmmergaard, Pernille
information about internal recourses, (4) Lack of operational goals to hold IT projects accountable, (5) No account of actual IT project costs. These results may be used to inform further research into IT PPM and to help managers improve IT PPM practices in public organizations in their effort of increase......As public organizations increasingly rely on IT-enabled development to provide faster cycle times and better services, IT Project Portfolio Management (IT PPM) has become a high priority issue. This research adopts engaged scholarship to investigate IT PPM practices within a large local government...... on the theory’s distinction between different modes of control five problems in control is identified: (1) weak accountability processes between the political and the administrative level, (2) weak accountability processes between director level and the IT executives, (3) IT projects established on incomplete...
Juhl, Hans Jørn; Christensen, Michael
Based on an exclusive business-to-business database comprising nearly 1,000 customers, the applicability of portfolio analysis is documented, and it is examined how such an optimization analysis can be used to explore the growth potential of a company. As opposed to any previous analyses, optimal...... customer portfolios are determined, and it is shown how marketing decision-makers can use this information in their marketing strategies to optimize the revenue growth of the company. Finally, our analysis is the first analysis which applies portfolio based methods to measure customer performance......, and it is shown how these performance measures complement the optimization analysis....
A reasonable assumption for the estimated new build market for the next 25 years is over 340 GWe net. The number of prospect countries is growing almost each day. To address this new build market, AREVA is developing a comprehensive portfolio of reactors intended to meet a wide range of power requirements and of technology choices. The EPR reactor is the flagship of the fleet. Intended for large power requirements, the four first EPRs are being built in Finland, France and China. Other countries and customers are in view, citing just two examples: the Usa where the U.S. EPR has been selected as the technology of choice by several U.S utilities; and the United Kingdom where the Generic Design Acceptance process of the EPR design submitted by AREVA and EDF is well under way, and where there is a strong will to have a plant on line in 2017. For medium power ranges, the AREVA portfolio includes a boiling water reactor and a pressurized water reactor which both offer all of the advantages of an advanced plant design, with excellent safety performance and competitive power generation cost: -) KERENA (1250+ MWe), developed in collaboration with several European utilities, and in particular with Eon; -) ATMEA 1 (1100+ MWe), a 3-loop evolutionary PWR which is being developed by AREVA and Mitsubishi. AREVA is also preparing the future and is deeply involved into Gen IV concepts. It has developed the ANTARES modular HTR reactor (pre-conceptual design completed) and is building upon its vast Sodium Fast Reactor experience to take part into the development of the next prototype. (author)
... 12 Banks and Banking 6 2010-01-01 2010-01-01 false How much can an FCU invest in or loan to CUSOs, and what parties may participate? 712.2 Section 712.2 Banks and Banking NATIONAL CREDIT UNION... reached or exceeded because of the profitability of the CUSO and the related GAAP valuation of the...
containing programs lacking EVM data. Analysis of larger EVM supported portfolios requires significantly more computation (exponential growth ) and...The rule had managers fill their portfolios with technology stocks during a period of rapid technology growth . While this strategy generated...himself points out, “The Rational Man, like the unicorn , does not exist” (Markowitz, 1959). The various investor assumptions presented above break down
Full Text Available In Romania, in the last decade, a significant number of solutions favorable to consumers with foreign currency denominated loans were obtained in courts against the banks or non-bank financial institutions. The judges noted the unfairness of the contractual terms inserted in the loans agreement and absolute nullity of these clauses. Also, in the context of the global economic and financial crisis triggered by the collapse of the banking system with the consequence of depreciation and/or sudden and high fluctuation of domestic currencies against the “safe-heaven currencies”, the theory of unpredictability becomes a particularly important institution. This paper deals with the concepts of „abusive clauses”, „unfair commercial practices” and „providing untruthful information to consumers to influence their choices”. It is also presenting a view of good faith and equity on the performance of contract and the “distribution of the risk” of the contract in the conditions of applying to the “unpredictability theory” in the context of terms of law doctrine and the relevant case law. The objective of this study is to demonstrate that by applying the theory of unpredictability to the occurrence of currency risk associated with loans in foreign currency and by subjecting to examination by court to the clauses whereby the consumer must assume the risk given by the changing of the circumstances of the execution of the contract can be obtain by the consumer or a rebalancing of the understanding of the parties or the cancellation clause which significantly unbalanced the consumer's obligation to bear any risk.
Based on the careful analysis of the definition of arbitrage portfolio and its return, the author presents a mean-variance analysis of the return of arbitrage portfolios, which implies that Korkie and Turtle's results ( B. Korkie, H.J. Turtle, A mean-variance analysis of self-financing portfolios, Manage. Sci. 48 (2002) 427-443) are misleading. A practical example is given to show the difference between the arbitrage portfolio frontier and the usual portfolio frontier.
Resumé - Bank Contracts Bank Contracts are an integral part of our everyday lives. Citizen and bussines entities used bank contracts very often. Despite this fact we can't find legal definition in the Czech law. Banking contracts understand contracts that are signed by banks in their business activities and obligations under these contracts arise. While the banking contracts have been widely used, in Czech law there is not too much literature and judgements abou this issue. Lack of legislatio...
Factors Affecting Loan Utilization And Repayment Patterns By Small Holder Farmers Of The Nigeria Agricultural Cooperative And Rural Development Bank ... that 35.8% of the beneficiaries were between the age brackets of 51- 60 years, about 61.3% of the respondents had a minimum of secondary school education.
support; state guarantees to financial institutions; targeted facilities; and increased .... 2016, the central bank set the maximum lending rates for both productive and ... The high cost structures in the economy have been accused of affecting the competitiveness of the. Evaluating Competition in the Loan and Deposit Market ...
Abdul Latif Alhassan
Full Text Available This paper examines the factors that account for the deterioration in the asset quality of Ghanaian banks during a period of financial crises using a unique dataset on 25 banks from 2005 to 2010. Based on system Generalized Method of Moments estimations, we find that the persistence of non-performing loans in addition to loan growth, bank market structure, bank size, inflation, real exchange rate and GDP growth are the significant determinants of banks asset quality in Ghana. The findings have implications for both bank management and regulators in emerging economies.
... COMMODITY FUTURES TRADING COMMISSION 17 CFR Part 23 RIN 3038-AC96 Confirmation, Portfolio Reconciliation, Portfolio Compression, and Swap Trading Relationship Documentation Requirements for Swap Dealers..., portfolio compression, and swap trading relationship documentation for Swap Dealers and Major Swap...
This dissertation is mainly devoted to the research of two problems - the continuous-time portfolio optimization in different Wishart models and the effects of discrete rebalancing on portfolio wealth distribution and optimal portfolio strategy.
Gapko, Petr; Šmíd, Martin
Roč. 66, č. 6 (2016), s. 565-574 ISSN 0015-1920 R&D Projects: GA ČR GA15-10331S Institutional support: RVO:67985556 Keywords : credit risk * mortgage * loan portfolio * dynamic model * estimation Subject RIV: AH - Economics Impact factor: 0.604, year: 2016 http://library.utia.cas.cz/separaty/2016/E/smid-0467176.pdf
Bjerring, Thomas Trier; Ross, Omri; Weissensteiner, Alex
Most portfolio selection rules based on the sample mean and covariance matrix perform poorly out-of-sample. Moreover, there is a growing body of evidence that such optimization rules are not able to beat simple rules of thumb, such as 1/N. Parameter uncertainty has been identified as one major...... reason for these findings. A strand of literature addresses this problem by improving the parameter estimation and/or by relying on more robust portfolio selection methods. Independent of the chosen portfolio selection rule, we propose using feature selection first in order to reduce the asset menu....... While most of the diversification benefits are preserved, the parameter estimation problem is alleviated. We conduct out-of-sample back-tests to show that in most cases different well-established portfolio selection rules applied on the reduced asset universe are able to improve alpha relative...
US Agency for International Development — The E3 Portfolio Review Database houses operational and performance data for all activities that the Bureau funds and/or manages. Activity-level data is collected by...
Nielsen, Simon Ellersgaard
’s theory of optimal portfolio selection for wealth maximisingagents. In this paper we present a systematic analysis of the optimal asset allocation in aderivative-free market for the Heston model, the 3/2 model, and a Fong Vasicek type model.Under the assumption that the market price of risk...... market prices, we findonly a very modest improvement in portfolio wealth over the corresponding strategy whichonly trades in bonds and stocks. Optimal Hedge Tracking Portfolios in a Limit Order Book. In this paper we developa control theoretic solution to the manner in which a portfolio manager optimally...... shouldtrack a targeted D, given that he wishes to hedge a short position in European call optionsthe underlying of which is traded in a limit order book. Specifically, we are interested in theinterplay between posting limit and market orders respectively: when should the portfoliomanager do what (and at what...
Douglas W. Diamond; Raghuram G. Rajan
We explore the connection between money, banks, and aggregate credit. We start with a simple real' model without money, where banks make loans repayable in goods and depositors hold claims on the bank payable on demand in goods. Aggregate production may be delayed in the economy. If so, we show that the level of ongoing bank lending, and hence of aggregate future output, can decrease with increases in the real repayment due on deposits: ceteris paribus, the higher the amount due, the more lik...
Širůček, Martin; Křen, Lukáš
ŠIRŮČEK MARTIN, KŘEN LUKÁŠ. 2015. Application of Markowitz Portfolio Theory by Building Optimal Portfolio on the US Stock Market. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 63(4): 1375–1386. This paper is focused on building investment portfolios by using the Markowitz Portfolio Theory (MPT). Derivation based on the Capital Asset Pricing Model (CAPM) is used to calculate the weights of individual securities in portfolios. The calculated portfolios include a po...
Full Text Available Securities of Slovene companies are listed at the Ljubljana Stock Exchange. Market capitalisation at the Ljubljana Stock Exchange has been growing since 1996 due to new listings of equities. On the basis of financial data time series for listed equities, the financial investor can calculate a risk for each individual security with a selected risk measure and can determine an optimal portfolio, subject to selected constraints. In this paper, we shall consequently determine an optimal portfolio of equities for the financial investor, investing his assets only in selected equities listed at the Ljubljana Stock Exchange. Selecting an appropriate risk measure is especially important for a commercial bank in a risk management process. Commercial banks can use internal models in the risk management process and for the purpose of capital charges as well. An optimal portfolio will be calculated, using a non-linear mathematical model.
Siti Rohaya Mat Rahim
Full Text Available Risk governance has evolved tremendously in the banking industry. Risk governance recommends the imperative roles of Chief Risk Officer (CRO to oversee risk. This study explores risk governance influence over the Islamic banks performances. Multivariate analysis techniques measure simultaneously via Structural Equation Modelling (SEM. This study employed cross-sectional sample of 200 Islamic banks across 21 countries for the year 2014. To examine risk governance and Islamic banks performance, the study captures seventeen variables developed from risk management and corporate governance (ROA, ROE, Profit Margin, CRO, Shariah committee member, CEO, board size, remuneration meeting, credit rating, external audit, accounting standard, loan loss provision, capital adequacy ratio, total deposit ratio, GDP, central bank lending rate and inflation. The simulation result reveals, risk governance act as mediating variables towards Islamic banks performance. This study has practical and significance contribution for Islamic banks to understand risk governance, aligning with the fundamental risk management and corporate governance
Over the last two years, several entities - from banks to credit unions to solar finance companies -have rolled out distributed solar-specific loan programs in the United States. These solar-specific loans are a distinct loan in that the underwriting, loan terms, lender security interest, and other programmatic aspects are designed exclusively for the financing of solar installations. Until recently, loan financing for distributed solar installations was largely through home equity loans, commercial loans, and other standardized loan products available to homeowners and businesses for general expenditures. However, as the U.S. solar market matures, so too are its financing options, and solar-specific loans stand to gain market share. This poster was presented at the Solar Power International conference in Las Vegas, NV in October 2014.
Ikpefan Ochei Ailemen
Full Text Available This study investigates the impact of shareholders’ fund on bank performance (market share in the Nigerian deposit banks (1986-2006. The study captured performance (market share and employed cross sectional and time series of bank data obtained from Central Bank of Nigeria (CBN.The formulated models were estimated using ordinary least square regression method. The study found a strong relationship between bank capital funds and bank deposits, loans and advances (proxies for market concentration. The result shows that shareholders’ fund and total assets of the banks have positive and significant impact in influencing the level of total deposits. The implication of this study, among others, is that adequate shareholders fund can serve as a veritable stimulant in strengthening the performance of Nigeria commercial banks and also heighten the confidence of customers especially in this era of global economic melt-down that has taken its toll in the Nigerian financial system
Hamadi, Malika; Heinen, Andreas; Linder, Stefan; Porumb, Vlad-Andrei
We use a sample of banks from 24 European countries to investigate whether the adoption of the Basel II Capital Accord in 2008 affects the market valuation of discretionary loan loss provisions (DLLPs). Although Basel II lowers the incentives of internal ratings-based (IRB) banks to recognize income
Full Text Available Abstract: Studies on the functioning of loan management models in banking institutions are of special significance for the ascertainment of efficient credit disbursement modalities and policies, with the aim of ensuring strategic and financial development. In their monetary programs, banks among other make assumptions on the increase of the demand for cash from loans for their respective economies and businesses. Supporting the economy through loans represents one of the main tasks of any banking system, and this is especially applicable in countries with specifics similar to our country. During the last half of the previous decade, the structure of deposits in the banking system underwent severe changes, which were generally in function of the country\\'s development, but also assisted in the development of the banking system itself. The overall tendency of the deposits in the banking system was positive, and charts and series matrixes show their ever growing tendencies. However, the vulnerability and problems of the first decade after the establishment of any banking system are reflected in crises and problems noted in the structure and level of deposits of such banking systems, which in the case of Kosovo was further reflected in external and internal factors affecting loans and their overall default.
... outstanding under paragraph (b) of this section to a single credit risk shall not exceed 10 percent of its... similar entities. 613.3300 Section 613.3300 Banks and Banking FARM CREDIT ADMINISTRATION FARM CREDIT... purchase, sale, or transfer of interests in loans, or other extensions of credit, or other technical and...
Jiménez, Gabriel; Ongena, Steven; Peydró, José-Luis; Saurina, Jesús
We analyze the impact of balance-sheet strength on credit availability. Bank balance sheets are weak in crisis times, but so are those of firms, and credit demand is then also weak. For identification, we exploit an administrative dataset of loan applications matched with bank and firm variables covering Spain from 2002 to 2010. Bank balance-sheet strength determines the granting of loan applications only in crisis times, while firm balance-sheet strength notably leverage d...
P. MARULLO REEDTZ
Full Text Available Il tema degli effetti dei controlli diretti sul credito bancario ha assunto sempre maggiore rilevanza nel corso del tempo , gli interventi si sono progressivamente evoluti dall essere uno strumento temporaneo di politica monetaria ad un elemento stabile del quadro istituzionale degli ultimi anni . Mentre i vincoli al portfolio di investimenti sono stati notevolmente facilitati dal 1978 , i limiti sui prestiti bancari sono aumentati in importanza come uno degli strumenti per la regolamentazione del credito totale interno . Il presente documento individua i principali effetti collaterali di limiti di credito e fornisce i dati necessari per valutare la loro dimensione effettiva . E poi illustra come alcuni paesi stranieri che esercitano il controllo diretto sul credito hanno introdotto politiche progettate per ridurre i loro inconvenienti ..The theme of the effects of direct controls on bank lending has taken on increasing relevance over time, as interventions have gradually evolved from being a temporary instrument of monetary policy to a stable element of the institutional framework of recent years. While portfolio constraints have been significantly eased since 1978, limits on bank loans have increased in importance as one of the tools for regulating total domestic credit. The present paper identifies the main side effects of credit limits and provides the necessary data to assess their effective size. It then illustrates how some foreign countries who exercise direct control over credit have introduced policies designed to mitigate their drawbacks.JEL: E51, E52, G21
Aslam, Aqib; Santoro, Emiliano
channel, due to the presence of collateralized borrowers, and (ii) a banking attenuator effect, which crucially arises from the spread in interest rates caused by the introduction of monopolistically competitive financial intermediaries. We show how the classical amplification mechanism explored in models...... of private borrowing between collaterally-constrained 'impatient' households and unconstrained 'patient' households, such as those put forward by Kiyotaki and Moore (1997) and Iacoviello (2005), is counteracted by the banking attenuator effect, given an endogenous steady state spread between loan and savings...
Full Text Available Banks are the most important tool for preparing and supplying money in each country. In recent years, by institution of the new private banks and privatization of the governmental banks, banking competition has become very complex. This paper performs an empirical investigation to study the effects of different factors on return on assets and return on equities on 18 selected Iranian firms over the period 2002-2011. Using different regression models, the study studies the effects of total assets, debt ratio, etc. on return of assets (ROA and return on equities (ROE on selected eighteen Iranian banks as statistical community. The study considers total assets, ownership ratio, deposits to assets ratio, and loans to assets ratio as independent variables, and ROE and ROA as dependent variables. The results indicate that the private banks returns were better than governmental banks and the commercial banks’ returns were better than special banks. There is a reverse relationship between logarithm of total assets and ownership ratio with profitability based on return of assets.
Hussain Ali Bekhet
Full Text Available Despite the increase in the number of non-performing loans and competition in the banking market, most of the Jordanian commercial banks are reluctant to use data mining tools to support credit decisions. Artificial neural networks represent a new family of statistical techniques and promising data mining tools that have been used successfully in classification problems in many domains. This paper proposes two credit scoring models using data mining techniques to support loan decisions for the Jordanian commercial banks. Loan application evaluation would improve credit decision effectiveness and control loan office tasks, as well as save analysis time and cost. Both accepted and rejected loan applications, from different Jordanian commercial banks, were used to build the credit scoring models. The results indicate that the logistic regression model performed slightly better than the radial basis function model in terms of the overall accuracy rate. However, the radial basis function was superior in identifying those customers who may default.
... member banks, bank holding companies, savings and loan holding companies, and all other institutions for... ; Supervision and Regulation Letter SR 01-4, OCC Bulletin 2001-6 or FDIC FIL-9-2001, Subprime Lending (January... expressed concern regarding the application of the proposed guidance to savings and loan holding companies...
Full Text Available The recent financial crisis has shown that a liquidity risk plays an important role in the current developed financial system. One of the efficient tools of liquidity risk management is stress testing which can show banks their potential vulnerability to liquidity shocks. The aim of this paper is therefore to measure the liquidity risk sensitivity of Czech commercial banks and to find out the most severe scenario and the most vulnerable bank. Our sample included significant part of the Czech banking sector; we used unconsolidated balance sheet data over the period from 2000 to 2011 which were obtained from annual reports of Czech banks. We have evaluated liquidity risk of each bank in the sample via six different liquidity ratios. Then we stressed these baseline values in three stress scenarios: run on a bank (simulated by a 20% withdrawal of deposits, confidence crisis on the interbank market (simulated by a withdrawal of 20% of interbank deposits and use of committed loans by counterparties (simulated by a 5% increase of loans provided to nonbank clients. We measured the impact of all scenarios by relative change of liquidity ratios. The impact of modelled liquidity shocks differs among scenarios. The most serious liquidity problems would be caused by the first scenario – run on a bank. The negative influence of third scenario (use of committed loans is less severe. The confidence crisis on the interbank market would not affect bank liquidity at all. The results also show that the severity of the impact of all scenarios worsens in periods of financial distress. We have also found that large and medium sized banks are most vulnerable to liquidity shocks, mainly to massive deposit withdrawals.
output firms. Banks can be regarded as multiple-output firms since different outputs can be identified (for example, interest income, non-interest income and deposits, loans) (Cronje ... and output data of the bank into a single measure of productive efficiency, which lies between ...... Business Forecasting, 7th edition. Upper.
Hoe, Lam Weng; Siew, Lam Weng
Investors wish to achieve the target rate of return at the minimum level of risk in their investment. Portfolio optimization is an investment strategy that can be used to minimize the portfolio risk and can achieve the target rate of return. The mean-variance model has been proposed in portfolio optimization. The mean-variance model is an optimization model that aims to minimize the portfolio risk which is the portfolio variance. The objective of this study is to construct the optimal portfolio using the mean-variance model. The data of this study consists of weekly returns of 20 component stocks of FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBMKLCI). The results of this study show that the portfolio composition of the stocks is different. Moreover, investors can get the return at minimum level of risk with the constructed optimal mean-variance portfolio.
Adamchik, Charles F., Jr.
Describes a model for student portfolios that contain goal record sheet, grade record form, test self-evaluation form, chapter summary, and work samples. Includes samples of these items and portfolio conference/assessment guide, and analytic rubrics. (MKR)
... Vol. 77 Tuesday, No. 176 September 11, 2012 Part II Commodity Futures Trading Commission 17 CFR Part 23 Confirmation, Portfolio Reconciliation, Portfolio Compression, and Swap Trading Relationship... FUTURES TRADING COMMISSION 17 CFR Part 23 RIN 3038-AC96 Confirmation, Portfolio Reconciliation, Portfolio...
... jeopardize jobs in the United States by supplying information that competitors could use to compete with... for a Long-Term Loan or Financial Guarantee in Excess of $100 Million: AP085680XX AGENCY: Export...''), that Ex-Im Bank has received an application for final commitment for a long-term loan or financial...
... supplying information that competitors could use to compete with companies in the United States. DATES... for a Long-Term Loan or Financial Guarantee in Excess of $100 million: AP085332XX AGENCY: Export...''), that Ex-Im Bank has received an application for final commitment for a long-term loan or financial...
Full Text Available This study aims to analyze the determinants of Islamic banking credit default compared with conventional banking in Indonesia. This study utilized timeseries analysis, by which ordinary least square method is adopted. 40 monthly data observations from January 2003 until April 2006 are used. The study is divided into two models, namely Islamic banking model and conventional banking model. The values of non-performing financing (NPF in Islamic banking and non-performing loan (NPL in conventional banking are treated as the dependent variables. The results showed that two-month lagged of non-performing financing (NPF, total asset (ASSET, the amount of thirdparty-funds (TPF, one-month lagged of total financing (DFIN, and growthof gross-domestic product (GDPG variables have significant impact to the ratio of non-performing financing (NPF in Islamic banking. Meanwhile, the three-month lagged of non-performing loan (DDDNPL, total asset (CASSET, three-month as well as two-month period lagged of total loan (DDDCRED and DDCRED, inter-bank money market (PUAB, and growth of gross-domestic (GDPG are significant to influence the ratio of non-performing loan (NPL in conventional banking. The result also implied that the general election in 2004 had a significant influence to the ratio of non-performing financing (NPF in Islamic banking.Even tough from the outset, it seems Islamic banking has a better performance than conventional banking by having a relatively low NPF, this study, however, has found the opposite. Albeit, Islamic banking showing a good long-runas well as short-run dynamics among all variables in the beginning, after modifying the model into autoregressive in the main analysis, results showed that conventional banking has a better performance than Islamic banking with higher correlation of determination. In this regard, we cannot assume thatIslamic banking is performing poorly in managing credit default problems. This is because the result
. The research project has partially been carried out at the Massachusetts Institute of Technology (MIT). The results of the dissertation build on research literature and empirical studies. All contributions have been confronted with industrial portfolio management practices or industry professional’s judgement......Product development companies are increasingly confronted with an unforgiving global marketplace, which urges the top management to pursue every product development opportunity that appears on the road. This situation incurs an important question: Which product development opportunities should...... a company choose to pursue in order to maximize the business results? Portfolio management is an essential means to accommodate this paradox. The three major contributions documented in this dissertation are a reference model for portfolio management, and a mindset together with three supporting tools...
Private Student Loans. Report to the Senate Committee on Banking, Housing, and Urban Affairs, the Senate Committee on Health, Education, Labor, and Pensions, the House of Representatives Committee on Financial Services, and the House of Representatives Committee on Education and the Workforce
Consumer Financial Protection Bureau, 2012
American consumers owe more than $150 billion in outstanding private student loan debt. While this amount is significantly less than the amount outstanding on student loans guaranteed by the federal government, the private student loan ("PSL") product is an important component of higher education finance and does not appear to be well…
Investors often adopt mean-variance efficient portfolios for achieving superior risk-adjusted returns. However, such portfolios are sensitive to estimation errors, which affect portfolio performance. To understand the impact of estimation errors, I develop simple and intuitive formulas of the squared Sharpe ratio that investors should expect from estimated efficient portfolios. The new formulas show that the expected squared Sharpe ratio is a function of the length of the available data, the ...
Hjorth, Anne Charlotte Overgaard; Bruhn, Helle
Brugen af portfolio var mangelfuld, men et udviklingsprojekt i samarbejde med den kommunale sygepleje motiverede både sygeplejestuderende og kliniske vejledere til at anvende læringsdelen af portfolio aktivt.......Brugen af portfolio var mangelfuld, men et udviklingsprojekt i samarbejde med den kommunale sygepleje motiverede både sygeplejestuderende og kliniske vejledere til at anvende læringsdelen af portfolio aktivt....
Full Text Available Bank failures affect owners, employees, and customers, possibly causing large-scale economic distress. Thus, banks must evaluate operational risks and develop early warning systems. This study investigates bank failures in the Organization for Economic Co-operation and Development, the North America Free Trade Area (NAFTA, the Association of Southeast Asian Nations, the European Union, newly industrialized countries, the G20, and the G8. We use financial ratios to analyze and explore the appropriateness of prediction models. Results show that capital ratios, interest income compared to interest expenses, non-interest income compared to non-interest expenses, return on equity, and provisions for loan losses have significantly negative correlations with bank failure. However, loan ratios, non-performing loans, and fixed assets all have significantly positive correlations with bank failure. In addition, the accuracy of the logistic model for banks from NAFTA countries provides the best prediction accuracy regarding bank failure
Full Text Available This paper tests whether the bank lending channel works in Indonesia. It develops an errorcorrection representation of the Autoregressive Distributed Lag (ARDL model of two bankcredit markets. Each model takes account of one structural break associated with the 1998financial crisis. The date of the crisis is determined by a unit root test that includes twostructural breaks. Instead of Johansen’s cointegrating procedure, bounds test procedure isimplemented. The estimated error correction model for both markets suggests that bankloans adjust more strongly towards loan supply, implying that monetary-induced disturbancesin bank loans originate from the supply side.Keywords: bank lending channel, unit root, structural breaks
Full Text Available This paper is focused on building investment portfolios by using the Markowitz Portfolio Theory (MPT. Derivation based on the Capital Asset Pricing Model (CAPM is used to calculate the weights of individual securities in portfolios. The calculated portfolios include a portfolio copying the benchmark made using the CAPM model, portfolio with low and high beta coefficients, and a random portfolio. Only stocks were selected for the examined sample from all the asset classes. Stocks in each portfolio are put together according to predefined criteria. All stocks were selected from Dow Jones Industrial Average (DJIA index which serves as a benchmark, too. Portfolios were compared based on their risk and return profiles. The results of this work will provide general recommendations on the optimal approach to choose securities for an investor’s portfolio.
... the frontier of international banking system with ability to support deeper financial markets, settle billions of naira transactions, act as custodian of financial assets for large institutions, and support the local economy with loans from locally and internationally sourced funding. NESG Economic Indicators Vol. 12 (2) 2006: pp.
Eleutério, Samuel; Araújo, Tanya; Vilela Mendes, R.
A geometric analysis of return time series, performed in the past, implied that most of the systematic information in the market is contained in a space of small dimension. Here we have explored subspaces of this space to find out the relative performance of portfolios formed from companies that have the largest projections in each one of the subspaces. As expected, it was found that the best performance portfolios are associated with some of the small eigenvalue subspaces and not to the dominant dimensions. This is found to occur in a systematic fashion over an extended period (1990-2008).
The main goal of the chapter is the presentation of the application project portfolio management approach to support development of e-Municipality and public administration information systems. The models of how people publish and utilize information on the web have been transformed continually. Instead of simply viewing on static web pages, users publish their own content through blogs and photo- and video-sharing slides. Analysed in this chapter, ICT (Information Communication Technology) projects for municipalities cover the mixture of the static web pages, e-Government information systems, and Wikis. So, for the management of the ICT projects' mixtures the portfolio project management approach is proposed.
This is an experience report on automated mass maintenance of a large Cobol software portfolio. A company in the financial services and insurance industry upgraded their database system to a new version, affecting their entire software portfolio. The database system was accessed by the portfolio of
H. Ning (Haikun)
textabstractUnder his own preference, how should an investor coordinate the asset managers such that his aggregated portfolio is optimized? The efficiency of each managed sub portfolio and the aggregation of all the sub portfolios are the 2 main underlying problems considered in this dissertation.
Müller, Heinz H.
This article summarizes some main results in modern portfolio theory. First, the Markowitz approach is presented. Then the capital asset pricing model is derived and its empirical testability is discussed. Afterwards Neumann-Morgenstern utility theory is applied to the portfolio problem. Finally, it is shown how optimal risk allocation in an economy may lead to portfolio insurance
This book contains three essays on alternative investments and portfolio management. Taking from a portfolio investor’s perspective, the first essay analyzes the portfolio implication of investing in hedge funds when there is a hedge fund lockup period. The second essay studies the investment
Poulsen, Bo Klindt; Dimsits, Miriam
of the statements from the students concerning their understanding of ePortfolio processes are fundamentally questions of how to make sense of the ePortfolio tool, both in their professional and personal lives. This calls for a didactical stance with the teachers who use ePortfolios, based on empowerment through...
Full Text Available The image processing is one of the leading technologies of computer applications. Image processing is a type of signal processing, the input for image processor is an image or video frame and the output will be an image or subset of image . Computer graphics and computer vision process uses an image processing techniques. Image processing systems are used in various environments like medical fields, computer-aided design (CAD, research fields, crime investigation fields and military fields. In this paper, we proposed a document image processing technique, for establishing electronic loan approval process (E-LAP . Loan approval process has been tedious process, the E-LAP system attempts to reduce the complexity of loan approval process. Customers have to login to fill the loan application form online with all details and submit the form. The loan department then processes the submitted form and then sends an acknowledgement mail via the E-LAP to the requested customer with the details about list of documents required for the loan approval process . The approaching customer can upload the scanned copies of all required documents. All this interaction between customer and bank take place using an E-LAP system.
Christensen, Michael; Vangsgaard Christensen, Michael; Gamskjaer, Ken
In this article, we investigate whether the application of the mean-variance framework on portfolio manager allocation offers any out-of-sample benefits compared to a naïve strategy of equal weighting. Based on an exclusive data-set of high-net-worth (HNW) investors, we utilize a wide variety...
Full Text Available Since the beginning of the financial and economic crises many news came to light which discussed the increasing number of non-performing loans, and the fact that as a result of the company break-downs, the bank portfolios have also gone worse and worse. In this paper our goal is to find out which internal factors influence the solvency of a company, therefore, to point out the weaknesses of the current Romanian rating systems, which as we will see, do not take into only relevant criteria when according a loan to a company. In order to conduct this study, we choose 18 indicators from several categories to predict bankruptcy. Some of the indicators mentioned above are really common in the international and the Romanian literature (e.g. ROA, ROE, ROS, assets turnover ratio, some of them are less. On a sample of 3000 Romanian companies we use the T-test statistical method to find out if an indicator is significant or not. The sample consists of companies (defaulted and non-defaulted as well which have presented their financial statements (balance, profit and loss account between 1999 and 2008. For each company a set of 18 financial indicators was calculated, but the results obtained show that only 8 of them is significant in predicting bankruptcy: ROA, assets turnover ratio, equity/total assets, general leverage, current assets to total assets, cash to total assets, total assets and sales. In the next step, by analyzing the obligatory forms used in credit lending, we conclude which indicators are used by different Romanian commercial banks. We found that only four out of seven banks calculate all of the significant indicators identified in the first part of the paper. Finally, we made a proposal about which quantitative indicators should the banks use to minimize the credit losses and to avoid the overdue payments. In addition, we consider that the banks should pay attention to the qualitative factors as well to effectively filter out non
Full Text Available This study examines the impact of credit risk on the interest income of banks in Nigeria between the period of 2000 and 2014. Unbalanced panel data analysis was used to estimate the model with unit root test, Breusch Pagan test, trend analysis, descriptive statistics, Perasan CD Test, heteroskedasticity test, heterogeneity test, serial correlation test, Jarquebera, F-statistics, random effect, fixed effect, time effect, Prob value, Hausman test and rho as the estimation parameters. The study discovered that NPL, LLP and LA are statistically significant in explaining the variation in interest income across banks in Nigeria, while LA/TD is not statistically significant in explaining the variation in interest income across banks in Nigeria. Based on this, the study recommends that regular update of credit policy and adequate measures to monitor loans should be put in place by banks in Nigeria, as these measures will reduce bad loans and ultimately cause a reduction in loan loss provisions.
The Bachelor's thesis deals with problems of financial literacy. The problem with financial literacy is an extensive topic, therefore the paper focuses only on consumer loans which belong to the most used products by citizens. The thesis gives basic information about companies, which offer consumer loans and warn against incorrect financial institutions and loan sharks. One of the chapters dedicates the indicator of advantages of consumer loans. It shows issues of indicator annual percentage ...
Full Text Available The aim of this paper is to estimate the banking profitability determinants of the Czech commercial banks during the period 2004-2014. For estimation of banking profitability we used three common measures, namely the Return on Assets, Return on Equity and Net Interest Margin. We estimated twelve determinants of banking performance. The effect of the determinants of banking profitability is estimated using panel data analysis. The data set is consists of seventeen commercial banks in the Czech Republic. The results show that the profitability was positively influenced by the bank’s size, capitalization, credit risk, level of concentration, ownership structure and bank’s market share. Number of branches of the bank had the negative impact on ROA and ROE. on the other hand, the variables Gross Domestic Product, interest rate, liquidity risk, riskiness of bank’s portfolio and affiliation with financial conglomerate have not got the significant influence on profitability of the Czech commercial banks.
.... 1261.11 Section 1261.11 Banks and Banking FEDERAL HOUSING FINANCE AGENCY FEDERAL HOME LOAN BANKS..., property, or relationship that involves receiving or providing something of monetary value, and includes... whom a director has a business relationship, including, but not limited to: (i) Any corporation or...
We employ a panel dataset of banks from 2005 to 2011, to analyse the impact of funding sources on three sets of lending patterns employed by banks: Primary, secondary and tertiary economic sectors. The result shows that banks in Ghana use internally generated funds to finance loans to the primary and secondary ...
Brummitt, Charles D; Sethi, Rajiv; Watts, Duncan J
We explore a model of the interaction between banks and outside investors in which the ability of banks to issue inside money (short-term liabilities believed to be convertible into currency at par) can generate a collapse in asset prices and widespread bank insolvency. The banks and investors share a common belief about the future value of certain long-term assets, but they have different objective functions; changes to this common belief result in portfolio adjustments and trade. Positive belief shocks induce banks to buy risky assets from investors, and the banks finance those purchases by issuing new short-term liabilities. Negative belief shocks induce banks to sell assets in order to reduce their chance of insolvency to a tolerably low level, and they supply more assets at lower prices, which can result in multiple market-clearing prices. A sufficiently severe negative shock causes the set of equilibrium prices to contract (in a manner given by a cusp catastrophe), causing prices to plummet discontinuously and banks to become insolvent. Successive positive and negative shocks of equal magnitude do not cancel; rather, a banking catastrophe can occur even if beliefs simply return to their initial state. Capital requirements can prevent crises by curtailing the expansion of balance sheets when beliefs become more optimistic, but they can also force larger price declines. Emergency asset price supports can be understood as attempts by a central bank to coordinate expectations on an equilibrium with solvency.
Gatot Nazir Ahmad
Full Text Available Comparative analysis of performance bank devisa BUMN and bank devisa Swasta. Thesis, Jakarta: Finance Concentration Management, Program Management, Department of Management, Faculty of Economics, University of Jakarta. Researchers aimed to determine the performance bank devisa BUMN and bank devisa Swasta by using the ratio Capital Asset Management (CAR, Return On Asset (ROA, Retrun On Equity (ROE, and Loan to Deposit Ratio (LDR. The samples used were four banks devisa BUMN and four banks devisa Swasta status go public. The data used in this study were obtained from the Annual Banking Financial report. The method of analysis used in this study is a descriptive analysis, test Outliers, and Normality Test Data Test different using paired sample t-test. The results of the analysis using a paired sample t-test between the results obtained bank devisa BUMN and bank devisa Swasta generally have a difference except for Capital Asset Ratio (CAR. The results of this study there was no difference between banks devisa BUMN and bank devisa Swasta. This study also shows that bank devisa Swasta have CAR greater than CAR bank devisa BUMN.
This paper studies moral hazard in banking due to delegated monitoring in an environment of aggregate risk and examines its implications for credit market equilibrium and regulation, in a model where banks are price competitors for loans and deposits. It provides a rationale for an incentive-based lending capacity positively linked to the bank’s capital and profit margin, for an oligopolistic market structure wherever banks have market power, and for capital requirements. Social-welfare-maxim...
This paper studies moral hazard in banking due to delegated monitoring in an environment of aggregate risk and examines its implications for credit market equilibrium and regulation, in a model where banks are price competitors for loans and deposits. It provides a rationale for an incentive-based lending capacity positively linked to the bank’s capital and profit margin, for an oligopolistic market structure wherever banks have market power, and for capital requirements. Social-welfare-maxim...
Chakroun, Fatma; Abid, Fathi
This paper considers the optimal asset allocation strategy for bank with stochastic interest rates when there are three types of asset: Bank account, loans and securities. The asset allocation problem is to maximize the expected utility from terminal wealth of a bank's shareholders over a finite time horizon. As a consequence, we apply a dynamic programming principle to solve the Hamilton-Jacobi-Bellman (HJB) equation explicitly in the case of the CRRA utility function. A case study is given ...
Ioana-Raluca DIACONU; Dumitru-Cristian OANEA
Co-operative banks were not analyzed in great detail in the literature compared to credit unions or even commercial banks. Through this paper we want to identify the main determinants of CreditCoop profitability, determinants: internal determinants (result of bank management) and external determinants (macroeconomic and industry variables). We found that the loan to assets ratio and equity to assets ratio have the highest and significant impact over the CreditCoop profitability. Moreover, we ...
Abstract In order to investigate the potential determinants of credit risk in Chinese commercial banks, a panel dataset includes 342 bank-year observations from 2003 to 2012 in Chinese commercial banks are used to quantify the relationship between the selected variables and Chinese bank’s credit risk. Based on several robust test, the empirical results suggest the inflation rate and loan loss provision is significantly positive to Chinese commercial banks’ credit risk, on the other hand, m...
The presence of outliers in financial asset returns is a frequently occurring phenomenon which may lead to unreliable mean-variance optimized portfolios. This fact is due to the unbounded influence that outliers can have on the mean returns and covariance estimators that are inputs in the optimization procedure. In this paper we present robust estimators of mean and covariance matrix obtained by minimizing an empirical version of a pseudodistance between the assumed model and the true model underlying the data. We prove and discuss theoretical properties of these estimators, such as affine equivariance, B-robustness, asymptotic normality and asymptotic relative efficiency. These estimators can be easily used in place of the classical estimators, thereby providing robust optimized portfolios. A Monte Carlo simulation study and applications to real data show the advantages of the proposed approach. We study both in-sample and out-of-sample performance of the proposed robust portfolios comparing them with some other portfolios known in literature. PMID:26468948
Koijen, R.S.J.; Nijman, T.E.; Werker, B.J.M.
We study the optimal consumption and portfolio choice problem over an individual's life-cycle taking into account annuity risk at retirement. Optimally, the investor allocates wealth at retirement to nominal, inflation-linked, and variable annuities and conditions this choice on the state of the
... conservatorship. One commenter suggested strategies for reengineering the nation's mortgage finance system. In... necessary reforms for the housing finance system or to the question of what form the Enterprises will take... FEDERAL HOUSING FINANCE AGENCY 12 CFR Part 1252 RIN 2590-AA22 Portfolio Holdings AGENCY: Federal...
Wever, R.; Boks, C.B.; Bakker, C.A.
On both a strategic level and a product level a lot is known on how to integrate sustainability aspects. On the intermediate level of product portfolio management this is not true. Here the strategic sustainability goals of a company need to be translated into products. A company wanting to innovate
A company seek to improve the understanding of the organization’s approach to portfolio management and the inherited activities and work patterns. In addition, the company wants to obtain a better picture of challenges within the area as well as concrete suggestions for improvement. The objectives...
Castaldi, Carolina; Milakovic, Mishael
We examine several subsets of the wealthiest individuals in the US and the UK that are compiled by Forbes Magazine and the Sunday Times. Since these are named subsets, we can calculate the returns to wealth portfolios, and calibrate a statistical equilibrium model of wealth distribution that
van Keulen, H.
Utrecht University, a large and fairly traditional (but highly successful) research university in The Netherlands, embraced the concept of personal development and planning portfolios in the aftermath of the Bologna agreements. Five-year HE programmes without much freedom or choice were changed into
Alessie, R.J.M.; Hochgürtel, S.; van Soest, A.H.O.
We describe and analyse the portfolio structure of Dutch households using micro panel data from the CentER Savings Survey, 1993-1998.The data allows for a distinction between many types of assets.Moreover, we have information on mortgage debt, consumer debt, etc.We analyse the composition of
Tan, Choon Peng; Kuang, Kee Seng; Lee, Yap Jia
The universal portfolio is an important investment strategy in a stock market where no stochastic model is assumed for the stock prices. The zero-gradient set of the objective function estimating the next-day portfolio which contains the reverse Kullback-Leibler order-alpha divergence is considered. From the zero-gradient set, the explicit, reverse Helmbold universal portfolio is obtained. The performance of the explicit, reverse Helmbold universal portfolio is studied by running them on some stock-price data sets from the local stock exchange. It is possible to increase the wealth of the investor by using these portfolios in investment.
Full Text Available European Bank for Reconstruction and Development - EBRD was established in the year 1991 and commenced operations in 1991. The objective of the Bank was to instigate market oriented approach to business in the countries of Central and Eastern Europe. This comprises support offered to structural reforms, privatisation, and development of entrepreneurship and legal system through financing of project conducive to the achievement of the aimed targets. The Bank approves loans both to the nation states and to the private sector. European Bank for Reconstruction and Development often appears in the role of investor. In addition, the Bank has also its consultative function. Owners of the European Bank for Reconstruction and Development are the developed countries and those that participate in the distribution of the Bank's profit. The Bank invests in the countries of Central, Eastern and South-East Europe, but also in those of Central Asia and Southern Mediterranean. The importance that the European Bank for Reconstruction and Development has for our country is best illustrated by the fact that this Bank is our largest institutional investor, with investments exceeding 3.5 billion EUR. This work begins with presentation of general information on the work of the European Bank for Reconstruction and Development, its objectives, activities, background history, ownership and organisational structure. It proceeds by giving relevant data on the Bank's business operations - the manner of project financing, the Bank's funds distribution per geographic criteria and activities, and the operative and financial results of the Bank's business activities. Brief description is also offered of the cooperation that the European Bank has with other international financial institutions. Finally, data is given bearing witness on the importance that the European Bank for Reconstruction and Development has for Serbia.
Full Text Available While the financial world is still dominated by conventional banks, based on western economic principles, the number of Islamic banks is on the rise. Islamic banks have originated from colonial India as a response of the Muslims to the British who attempted to westernize their society. Other similar financial operations based on Islamic Law (Shari’a were established in Pakistan, Malaysia and Egypt to facilitate access of rural poor to interest-free loans. However, being unprofitable, these operations did not survive for very long. Islamic banks, unlike conventional banks, are not based on interest and conduct their business in accordance with a wide array of ethical and moral issues. The modern phase of Islamic banking started in the 1970s when the Islamic Development Bank was founded in Saudi Arabia. Soon after, a number of commercial banks were established in the neighboring countries. From this core, over the last four decades, Islamic finance and banking has spread across the entire Muslim world and beyond to become a global phenomenon. This study examines the development of Islamic banking in Turkey in the wider context of global expansion. Turkey is an interesting case study because, although its population is nearly 100% Muslim, it is a secular state built on the model of Western European countries. However, lately, the moderate Islamic party in power since 2002 has shown some signs of openness towards a parallel banking system based on Islamic principles.
Aleksandar Marsavelski; John Braithwaite
Cohen and Machalek’s (1988) evolutionary ecological theory of crime explains why obscure forms of predation can be the most lucrative. Sutherland explained that it is better to rob a bank at the point of a pen than of a gun. The US Savings and Loans scandal of the 1980s suggested ‘the best way to rob a bank is to own one’. Lure constituted by the anomie of warfare and transition to capitalism in former Yugoslavia revealed that the best way to rob a bank is to control the regulatory system: th...
Tabak, Benjamin M.; Cajueiro, Daniel O.; Serra, Thiago R.
This paper investigates the topological properties of bank networks. We build the minimum spanning tree, which is based on the concept of ultrametricity, using the correlation matrix for a variety of banking variables. Empirical results suggest that the private and foreign banks tend to form clusters within the network. Furthermore, banks with different sizes are also strongly connected and tend to form clusters. These results are robust to the use of different variables to build the network, such as bank profitability, assets, equity, revenue and loans.
Full Text Available A credit institution liquidity managing, concerns on currency flows and operative funding needs, for customer satisfaction. Correlating bank liabilities and assets reflects the overall picture of the liquidity situation. The purpose of an efficient management of bank liquidity is to ensure the normal course of banking intermediation, to protect the interests of customers on one side and of the shareholders on the other side. Through an efficient bank liquidity management, are ensured reserve requirements and especially reasonable banking capacity of deposits reimbursement to customers, correlated with period in which they are or there are not returned to the credit institution, investments in the loans and other assets.
Williamson, Stephen D
A multiperiod model with risk-neutral agents is constructed in which a liquidity problem arises in an equilibrium with decentralized tradin g in capital, which banking institutions are able to alleviate. Depos it contracts provide for early withdrawal, banks hold debt, and agent s who borrow from banks hold compensating balances. Institutional col lapse, or a state of the world when bank failures are experienced, is associated with a high demand for liquidity, low output, and a lower than ave...
Boot, A.; Thakor, A.V.
This note discusses some issues in bank closure policy from a financial stability standpoint and how these issues have evolved since we first raised the question of how a reputation-driven divergence of interests between bank regulators and taxpayers may distort bank closure policy in our 1993 paper
Bryan J. Noeth; Rajdeep Sengupta
To those who don't know, the term "shadow banking" probably has a negative connotation. This primer draws parallels between what has been termed the shadow banking sector and the traditional banking sector—showing that they are similar in many ways.
Full Text Available This paper investigates distress classification measures in the banking sector. The power of ten different accounting measures is tested using media coverage as the benchmark for a sample of 1,175 banks which participated in merger and acquisitions or divestiture deals over the past 22 calendar years. According to the results of the study, a bank should be defined as distressed if the ratio of its non-performing loans to total loans is in the two highest deciles of the industry, using a three-year moving average. This measure is typically favored by practitioners, who maintain that other common measures, e.g., those involving provisions for loan losses, are not as accurate as they express only a managerial forecast. Interestingly, measures that capture capital adequacy too often depict the bank as healthy even if it is de facto distressed, while measures of asset quality, though highly correlated with each other, tend to overestimate the number of distressed banks.
The offer of the United States to loan Californium-252 sources to the IAEA was made by Dr. Glenn T. Seaborg, then chairman of the USAEC, in his opening statement at the 15th. General Conference of the IAEA held in Vienna in 1971. The purpose of this loan was to make neutron emitting sources available to universities in the Member States for use in educational programmes. The sources, in the form of small needles designed for medical use in radiation therapy, were judged highly suitable for didactic applications due to their small size, limited activity and well documented radiological parameters. Subsequently, in May 1973, the Director General announced the availability of the Californium sources to the Member States. To date, numerous sources have been loaned to universities in Czechoslovakia, Costa Rica, the Federal Republic of Germany, Ghana, India, Iran, Israel, Japan, South Africa, Switzerland, the United Kingdom and Uruguay; additional applications for loans are being processed. It is anticipated that the loan programme will be terminated in 1975 once all the available sources have been distributed. n order to provide guidance for the Member States on the safe exploitation of these sources, a prototype use and storage facility was designed by IAEA staff of the Dosimetry Section of the Division of Life Sciences, and constructed at the IAEA laboratory in Seibersdorf, Austria. Figures 2-5 illustrate some of the details of this container, which is being given to the Ghana Nuclear Centre in support of a training programme for students at the university in Accra. Further advice to users of these sources will be provided by the publication of an instructional syllabus, a laboratory manual for experiments and the safety precautions inherent in the proper handling of neutron emitting radionuclides, authored by Professors Erich J. Hall and Harald H. Rossi of Columbia University. The syllabus and manual will be published as part of the IAEA Technical Series in September
Full Text Available This paper explores the influence of macroeconomic indicators, namely GDP growth, the Consumer Price Index and the unemployment rate on the quality of loan repayments by households in the banking market of the Federation of Bosnia and Herzegovina. Potential influence is observed over a period of fourteen years at the level of nonperforming household loans using regression analysis. The authors aim to determine whether macroeconomic forces actually influence loan repayment, and if so how and what can be done by banks to utilize this information in order to reduce future credit losses, and by the government to maintain the stability of the banking sector.
Full Text Available Although prior research has suggested that some students may be averse to taking out loans to finance their college education, there is little empirical evidence showing the extent to which loan aversion exists or how it affects different populations of students. This study provides the first large-scale quantitative evidence of levels of loan aversion in the United States. Using survey data collected on more than 6,000 individuals, we examine the frequency of loan aversion in three distinct populations. Depending on the measure, between 20 and 40% of high school seniors exhibit loan aversion with lower rates among community college students and adults not in college. Women are less likely to express loan-averse attitudes than men, and Hispanic respondents are more likely to be loan averse than White respondents.
Alexander Olawumi Dabor
Full Text Available Islamic banking is consistent with the principles of Sharia which prohibits acceptance of interest on loans. Islamic finance has increasingly become a significant source of finance in the Western world, especially in the United Kingdom, despite the regulatory hurdles presented before it non-Muslim financial environment. The Nigerian state has also joined the other nations to establish Islamic banking against all hurdles, misconstrued and initial misconception of what Islamic bank stand for. The objective of this study is to ascertain the benefits and challenges facing the growth of Islamic banking in the Nigeria. Nigeria is said not to the hub of Islamic banking and does not naturally have the inbuilt instruments needed for Islamic finance due to its multi-religious nature. This study employed primary data via administering of questionnaire. Two hundred copies of questionnaire were distributed to prospective customers of Islamic banking and non-customers of Islamic banking residing in four geo-political zones in Nigeria. Our data were analyzed by employing Z-test statistical technique and chi-square statistical technique. The result showed that lack of awareness and customers’ preference for conventional banks and traditional money lenders are the major challenges facing the growth of Islamic banking in Nigeria. Our result further showed that poverty alleviation and job creation are the major benefits that will be derived from Islamic in Nigeria. Finally, the study reveals that there are greater opportunities for Nigeria the development and growth of Islamic financial system because most commercial bank customers are eager to switch from the convention banking (exhortative system to take financial products that are interest free. The study recommended both Muslim and non- Muslim communities should be educated on the mission statement of Islamic bank and what they stand to gain from Islamic bank. The study also recommended that Islamic banking
Full Text Available Using data for Chinese commercial banks from 2000 to 2014, this paper examines the effects of economic policy uncertainty (EPU on banks’ credit risks and lending decisions. The results reveal significantly positive connections among EPU and non-performing loan ratios, loan concentrations and the normal loan migration rate. This indicates that EPU increases banks’ credit risks and negatively influences loan size, especially for joint-equity banks. Given the increasing credit risks generated by EPU, banks can improve operational performance by reducing loan sizes. Further research indicates that the effects of EPU on banks’ credit risks and lending decisions are moderated by the marketization level, with financial depth moderating the effect on banks’ credit risks and strengthening it on lending decisions.
Full Text Available Puerto Rico has been going through a period of economic downturn since 2006, beginning a little before the global economic recession. This paper examines the behavior of loans granted by the commercial banking sector and their relationship with the number of business bankruptcies filed in Puerto Rico between 1999 and 2011. Findings draw attention to the fact that from 2006, there has been a steady decline in the number of personal, commercial and mortgage loans approved by the commercial banking sector, as well as in their value. An increase in the filing of bankruptcy is also observed. The number of loans approved by banks in Puerto Rico show a strong correlation with the economic activity index (EAI and other economic indicators that help to explain the island’s employment situation (total employment, labor force participation rate and unemployment rate.
Full Text Available This research is performed on order to analyze the influence of Non Performing Loan (NPL, Loan to Deposit Ratio (LDR, Capital Adequacy Ratio (CAR, Net Interest Margin (NIM, and Operating Expense to Operating Income Ratio (OEOI as independent variable toward Return on Asset (ROA and Return on Equity (ROE as dependent variable. Sample for this research is all of BUKU 4 banks and seven banks on BUKU 3 banks in Indonesia in 2006-2015 period. Data analysis with multi liniear regression. The result of this research shows that all of independent variables have significant influence on ROA and ROE simultaneously. NIM has partially significant effect on profitability both in BUKU 3 and BUKU 4 banks but other variables have various effect on profitability. The amount of the contribution or influence independent variables to ROA are 64,7% in BUKU 3 banks and 90,4% on BUKU 4 banks. Meanwhile contribution of independent variables to ROE are 55,4% in BUKU 3 banks and 74,1% in BUKU 4 banks.
Full Text Available Banking as a safe bridge of risk management balances relation between deposit and loan. In the growing trend of interest-free banking Turkey practice, Participation Banking is working to fix the expectations of customers with reasonable solutions. For corporate customers with comprehensive cash management expectations, producing appropriate and fast solutions are important for a positive and sustainable customer experience. Cash Management covers collection of trade receivables and short -term debt payments. In this study, in the light of the financial ratios of participation banking within the banking industry, a participation bank customers' experiences and expectations in cash management products and services were evaluated with the survey methodology and its importance were also examined.
Aleksiejuk, Agata; Hołyst, Janusz A.
Interbank deposits (loans and credits) are quite common in banking system all over the world. Such interbank co-operation is profitable for banks but it can also lead to collective financial failures. In this paper, we introduce a new model of directed percolation as a simple representation for contagion process and mass bankruptcies in banking systems. Directed connections that are randomly distributed between junctions of bank lattice simulate flows of money in our model. Critical values of a mean density of interbank connections as well as static and dynamic scaling laws for the statistics of avalanche bankruptcies are found. Results of computer simulations for the universal profile of bankruptcies spreading are in a qualitative agreement with the third wave of bank suspensions during The Great Depression in USA.
Full Text Available The paper focuses on the interaction between the solvency probability of a banking firm and the diversification potential of its asset portfolio when determining optimal equity capital. The purpose of this paper is to incorporate value at risk (VaR into the firm-theoretical model of a banking firm facing the risk of asset return. Given the necessity to achieve a confidence level for solvency, we demonstrate that diversification reduces the amount of equity. Notably, the VaR concept excludes a separation of equity policy and asset-liability management.
Klein, Larry; Shelton, Greg
When developing strategies for collecting on patient debt, hospitals can benefit from following the example of the banking industry: Banks take a "do-it-yourself" approach, working delinquent accounts in-house for as long as practical. They embrace technology to give in-house debt collectors optimal opportunity to connect with customers to work out terms for resolving debt. They strategically leverage outside collections agencies based on the makeup of their debt portfolio.
Full Text Available This paper assesses the predictability of Conditional Value at Risk measure in estimating systemic risk and contagion effects. Using the OLS panel estimation technique applied for a sample of European banks we highlight the link between systemic risk and a range of balance sheet indicators over 2008-2011. The empirical results show that future contributions of banks to systemic risk can be reduced by adjusting countercyclical the banks’ asset and liability portfolios.
I evaluate the effect of loyalty on individuals' portfolio choice using a unique dataset of retirement contributions. I exploit the statutory difference that, in 401(k) plans, stand-alone employees can invest directly in their division, while conglomerate employees must invest in the entire firm, including all unrelated divisions. Consistent with loyalty, employees of stand-alone firms invest 10 percentage points (75%) more in company stock than conglomerate employees. Support is also found u...
Liu, Min; Wu, Felix F.
In a competitive electricity market, Generation companies (Gencos) face price risk and delivery risk that affect their profitability. Risk management is an important and essential part in the Genco's decision making. In this paper, risk management through diversification is considered. The problem of energy allocation between spot markets and bilateral contracts is formulated as a general portfolio optimization problem with a risk-free asset and n risky assets. Historical data of the PJM electricity market are used to demonstrate the approach. (author)
Palacios, Alejandro; Giraldo, Marcela; Quintero, O. L.
This paper focuses on the study of an optimal portfolio in the Colombian Energy Market using the Artificial Intelligence techniques specifically, Fuzzy Modeling and Neural Networks. The methodology at first, is implemented using the Matlab Fuzzy Logic Toolbox and with the help of a script the process is automatized. Secondly, a Neural Network is implemented in Matlab and its results are compared with the ones obtained in the Matlab Neural Network Toolbox. The results of the Fuzzy model and th...
Bølviken, Erik; Henriksen, Pål Nicolai
A numerical strategy for solving low-dimensional Bellman equations through the traditional backwards recursion is formulated. A simple error analysis suggests that the approach handles many multi-period portfolio selection problems, and a number of examples confirm this experimentally. Minimum downside risk procedures are studied and it is demonstrated how multi-period efficient frontiers can be calculated for such criteria. A closing example examines the impact of heavy-tailed distributions ...
Knaup, M.; Wagner, W.B.
We propose a new method for measuring the quality of banks' credit portfolios. This method makes use of information embedded in bank share prices by exploiting differences in their sensitivity to credit default swap spreads of borrowers of varying quality. The method allows us to derive a credit
Knaup, M.; Wagner, W.B.
We propose a new method for measuring the quality of banks credit portfolios. This method makes use of information impounded in bank share prices by exploiting differences in their sensitivity to credit default swap spreads of borrowers of varying quality. The method allows us to derive a credit
Knaup, M.; Wagner, W.B.
We propose a new method for measuring the quality of banks' credit portfolios. This method makes use of information impounded in bank share prices by exploiting differences in their sensitivity to credit default swap spreads of borrowers of varying quality. The method allows us to derive a credit
Risk control and optimal diversification constitute a major focus in the finance and insurance industries as well as, more or less consciously, in our everyday life. We present a discussion of the characterization of risks and of the optimization of portfolios that starts from a simple illustrative model and ends by a general functional integral formulation. A major item is that risk, usually thought of as one-dimensional in the conventional mean-variance approach, has to be addressed by the full distribution of losses. Furthermore, the time-horizon of the investment is shown to play a major role. We show the importance of accounting for large fluctuations and use the theory of Cramér for large deviations in this context. We first treat a simple model with a single risky asset that exemplifies the distinction between the average return and the typical return and the role of large deviations in multiplicative processes, and the different optimal strategies for the investors depending on their size. We then analyze the case of assets whose price variations are distributed according to exponential laws, a situation that is found to describe daily price variations reasonably well. Several portfolio optimization strategies are presented that aim at controlling large risks. We end by extending the standard mean-variance portfolio optimization theory, first within the quasi-Gaussian approximation and then using a general formulation for non-Gaussian correlated assets in terms of the formalism of functional integrals developed in the field theory of critical phenomena.
Full Text Available The paper empirically investigates the determinants of interest rate spread in Kenya's banking sector based on panel data analysis. The findings show that bank-specific factors play a significant role in the determination of interest rate spreads. These include bank size, credit risk as measured by non-performing loans to total loans ratio, return on average assets and operating costs, all of which positively influence interest rate spreads. On the other hand, higher bank liquidity ratio has a negative effect on the spreads. On average, big banks have higher spreads compared to small banks. The impact of macroeconomic factors such as real economic growth is insignificant. The effect of the monetary policy rate is positive but not highly significant. The results largely reflect the structure of the banking industry, in which a few big banks control a significant share of the market.
In the world of banking, the development of IT has a huge effect on development of more flexible payments methods and more user-friendly banking services. Recently, modern electronic banking services, internet and mobile banking, have rejuvenated banking transactions. Electronic banking over the Internet is one of the newest e-banking services with several benefits both for banks and for customers. The paper aims to provide an overview of online banking services highlighting various aspect...
van Leuvensteijn, M.; Kok Sørensen, C.; Bikker, J.A.; van Rixtel, A.A.R.J.M.
This paper analyses the impact of loan market competition on the interest rates applied by euro area banks to loans and deposits during the 1994-2004 period, using a novel measure of competition called the Boone indicator. We find evidence that stronger competition implies significantly lower
Fayegh Zaheri; Hiwa Farughi; Hersh Soltanpanah; Seiran Alaniazar; Foruzan Naseri
One of the most basic requirements of financial institutes, governmental and private banks in the present age is to have a good understanding on customers' behaviors of bank network. It helps banks determine customer loyalty, which yields profit making for bank. On the other hand, it is important to know about credit risk of customers with the goal of decreasing loss and better allocation of bank resources to applicants of receiving loan. According to nature of customer loyalty discussion and...
Gábor, Adrienn; Kondor, I.
In a recent paper Galluccio, Bouchaud and Potters demonstrated that a certain portfolio problem with a nonlinear constraint maps exactly onto finding the ground states of a long-range spin glass, with the concomitant nonuniqueness and instability of the optimal portfolios. Here we put forward geometric arguments that lead to qualitatively similar conclusions, without recourse to the methods of spin glass theory, and give two more examples of portfolio problems with convex nonlinear constraints.
Ritter, Thomas; Andersen, Henrik
The paper develops a three-dimensional portfolio model for business relationships which distinguishes among six different categories. Based on assessments of customer profitability, customer commitment, and growth potential, the positioning of a given customer relationship in the portfolio allows...... managers to determine appropriate customer relationship strategies and appropriate performance indicators. Results from applying the portfolio model are reported and managerial implications and future research are discussed....
Vance, Gillian; Williamson, Alyson; Frearson, Richard; O'Connor, Nicole; Davison, John; Steele, Craig; Burford, Bryan
The trainee-held learning portfolio is integral to the foundation programme in the UK. In the Northern Deanery, portfolio assessment is standardised through the Annual Review of Competence Progression (ARCP) process. In this study we aimed to establish how current trainees evaluate portfolio-based learning and ARCP, and how these attitudes may have changed since the foundation programme was first introduced. Deanery-wide trainee attitudes were surveyed by an electronic questionnaire in 2009 and compared with perceptions recorded during the pilot phase (2004-2005). Many trainees continue to view the e-portfolio negatively. Indeed, significantly fewer trainees in 2009 thought that the e-portfolio was a 'good idea' or a 'worthwhile investment of time' than in 2005. Trainees remain unconvinced about the educational value of the e-portfolio: fewer trainees in 2009 regarded it as a tool that might help focus on training or recognise individual strengths and weaknesses. Issues around unnecessary bureaucracy persist. Current trainees tend to understand how to use the e-portfolio, but many did not know how much, or what evidence to collect. Few supervisors were reported to provide useful guidance on the portfolio. ARCP encouraged portfolio completion but did not give meaningful feedback to drive future learning. Continued support is needed for both trainees and supervisors in portfolio-building skills and in using the e-portfolio as an educational tool. Trainee-tailored feedback is needed to ensure that portfolio-based assessment promotes lifelong, self-directed and reflective learners. © Blackwell Publishing Ltd 2013.
Buraschi, Andrea; Porchia, Paolo; Trojani, Fabio
We develop a new framework for multivariate intertemporal portfolio choice that allows us to derive optimal portfolio implications for economies in which the degree of correlation across industries, countries, or asset classes is stochastic. Optimal portfolios include distinct hedging components against both stochastic volatility and correlation risk. We find that the hedging demand is typically larger than in univariate models, and it includes an economically significant covariance hedging...
Freixas, X.; Ma, K.
This paper reexamines the classical issue of the possible trade-offs between banking competition and financial stability by highlighting different types of risk and the role of leverage. By means of a simple model we show that competition can affect portfolio risk, insolvency risk, liquidity risk,
Goderis, B.V.G.; Marsh, I.; Vall Castello, J.; Wagner, W.B.
One of the most important recent innovations in financial markets has been the development of credit derivative products that allow banks to more actively manage their credit portfolios than ever before.We analyze the effect that access to these markets has had on the lending behavior of a sample of
... DEVELOPMENT (RCD) LOANS AND WATERSHED (WS) LOANS AND ADVANCES § 1781.7 Loan and advance limitations and obligations incurred before loan closing. (a) WS and RCD loan limitations. (1) Loans will not be used for: (i... facilities primarily for the benefit of other than rural areas. (xvii) Any single RCD measure that requires a...
Full Text Available Penyaluran kredit BPD masih didominasi kredit konsumsi dibandingkan kredit modal kerja. Risiko kredit modal kerja BPD yang dikur dalam Non Performing Loan mengalami peningkatan selama penerapan BRC. Penelitian ini bertujuan untuk menganalisis respon NPL kredit modal kerja BPD akibat perubahan faktor internal bank dan besarnya kontribusi faktor tersebut terhadap perubahan NPL. Data yang digunakan adalah time series berdasarkan bulanan tahun 2011-2014 yang diperoleh dari Bank Indonesia. Metode analisis yang digunakan adalah Vector Autoregression dengan analisis Impulse Response Function dan Variance Decomposition. Hasil impulse response function menunjukan NPL merespon positif terhadap perubahan LDR dan bank size tetapi merespon negatif terhadap perubahan tingkat bunga kredit modal kerja. Hasil Variance decomposition menunjukan bahwa variabel yang paling berkontribusi pada perubahan NPL adalah bank size. BPD loan portofolio is still dominated by consumer loans than working capital loans. BPD working capital loans risk which measured by non performing loans is increased during implementation of the BRC. This study aimed to analyze the NPL response of BPD working capital loans due to changes of bank internal factors and the amount of factors contributing to NPL change. The data used is based on monthly time series in 2011 to 2014 that obtained from Bank of Indonesia. The analytical method used is Vector Autoregression with Impulse Response Function and Variance Decomposition analysis. The results of impulse response function indicate that NPL respond positively to LDR and bank size change but respond negatively to interest rates change. Variance decomposition results showed that the variables that most contribute to the change of NPL of BPD working capital loans is bank size.
Bekhet, Hussain Ali; Eletter, Shorouq Fathi Kamel
Despite the increase in the number of non-performing loans and competition in the banking market, most of the Jordanian commercial banks are reluctant to use data mining tools to support credit decisions. Artificial neural networks represent a new family of statistical techniques and promising data mining tools that have been used successfully in classification problems in many domains. This paper proposes two credit scoring models using data mining techniques to support loan decisions for th...
Hernandez, Ruben; Owyang, Michael; Ghent, Andra
In this paper we investigate whether race and ethnicity influenced subprime loan pricing during 2005, the peak of the subprime mortgage expansion. We combine loan-level data on the performance of non-prime securitized mortgages with individual- and neighborhood-level data on racial and ethnic characteristics for metropolitan areas in California and Florida. Using a model of rate determination that accounts for predicted loan performance, we evaluate the presence of disparate impact and dispar...
Full Text Available The aim of this paper is to understand the role of market power on the loan risk and overall bank risk measures for Turkish banks during 2001-2009. Testing for this question is particularly important for the Turkish banking system, which experienced an intense regulation process after 2000 leading to a significant decrease in the number of banks and thereby possibly reducing competition. The results of the study provide some evidence regarding the competition-stability hypothesis.
Hasan, Iftekhar; Kobeissi , Nada; Wang, Haizhi; Zhou , Mingming
This paper provides an empirical examination of the regional banking structures in China and their effects on entrepreneurial activity. Using a panel of 27 provinces and four directly controlled municipalities from 1997 through 2008, we find that the presence of large banking institutions negatively correlates with small business development in local markets and that this negative relation is driven mainly by participation of large banks in the short-term loan market. Rural banking institutio...
Ergemen, Yunus Emre; Taamouti, Abderrahim
A parametric portfolio policy function is considered that incorporates common stock volatility dynamics to optimally determine portfolio weights. Reducing dimension of the traditional portfolio selection problem significantly, only a number of policy parameters corresponding to first- and second......-order characteristics are estimated based on a standard method-of-moments technique. The method, allowing for the calculation of portfolio weight and return statistics, is illustrated with an empirical application to 30 U.S. industries to study the economic activity before and after the recent financial crisis....
Zhao, Ziping; Palomar, Daniel P.
This paper considers the mean-reverting portfolio design problem arising from statistical arbitrage in the financial markets. We first propose a general problem formulation aimed at finding a portfolio of underlying component assets by optimizing a mean-reversion criterion characterizing the mean-reversion strength, taking into consideration the variance of the portfolio and an investment budget constraint. Then several specific problems are considered based on the general formulation, and efficient algorithms are proposed. Numerical results on both synthetic and market data show that our proposed mean-reverting portfolio design methods can generate consistent profits and outperform the traditional design methods and the benchmark methods in the literature.
Full Text Available n this paper, we provide a description of a CSLP research project that looked at portfolio use within a middle school, the web-based e-portfolio software we have developed within the context of the Quebec educational system, our plans for further development of the tool, and our research plans related to the use of portfolios to support learning. Our aim is to combine research evidence on portfolio use with practical feedback from the field in an attempt to develop easy-to-use, powerful software designed to support active self-regulated student learning in schools.
Rossi, Pier Giuseppe; Magnoler, Patrizia; Giannandrea, Lorella
Purpose: An e-portfolio is a useful tool to increase reflection and awareness in teachers and students. However, benefits of e-portfolio use are weakened by difficulties due to the lack of motivation, the heavy weight of creation and revision of the e-portfolios, the rigid tool structure. The paper aims to answer these emerging issues, showing how…
.... Portfolio compression allows for a reduction in outstanding trade count and outstanding gross notional value... resolving these disputes. Specifically, portfolio reconciliation is a post-execution processing and risk... portfolio reconciliation. In order for the marketplace to realize the full risk reduction benefits of...
Full Text Available We consider a nonzero-sum stochastic differential portfolio game problem in a continuous-time Markov regime switching environment when the price dynamics of the risky assets are governed by a Markov-modulated geometric Brownian motion (GBM. The market parameters, including the bank interest rate and the appreciation and volatility rates of the risky assets, switch over time according to a continuous-time Markov chain. We formulate the nonzero-sum stochastic differential portfolio game problem as two utility maximization problems of the sum process between two investors’ terminal wealth. We derive a pair of regime switching Hamilton-Jacobi-Bellman (HJB equations and two systems of coupled HJB equations at different regimes. We obtain explicit optimal portfolio strategies and Feynman-Kac representations of the two value functions. Furthermore, we solve the system of coupled HJB equations explicitly in a special case where there are only two states in the Markov chain. Finally we provide comparative statics and numerical simulation analysis of optimal portfolio strategies and investigate the impact of regime switching on optimal portfolio strategies.
Maria Daciana Rodean Cozma
Full Text Available Bank performance is an indicator of the quality management and soundness of commercial banks. The systemic role of the commercial banks in the Romanian economy and their role of main creditor determine the supervisors to monitories their performance and their capacity to face the challenges. Taking into account that we are talking about a banking system which has not yet exceeded during turbulence generated by economic and financial crisis, the aim of this study is to identify and analyze the main determinants of bank performance, so any shocks that may impact on this indicator to be identified early and minimized. The financial authorities, in their attempt to avoid new bank failures, because of their negative impact on the entire financial system, have imposed new capital requirements in order to strengthen the banking system’ capacity to absorb shocks. The most used indicators in order to measure the performance of the banking system are return on assets and return on equity. Taking into accounts this consideration the main objective of this study is to analyze the determinants that have a major impact on the banking system performance in an empirical and theoretical manner. To achieve this goal we used a quantitative method, the Pearson’s coefficient. Into the model were involved datas recorded by Romanian banking system in the period 2008-2013, processed by the publications of National Bank, the International Monetary Fund and the National Institute of Statistics. In the model of the correlation coefficient, the regression involved the following indicators: solvency, nonperforming loans as a percentage of total loans, gross domestic product and inflation. The results demonstrated that the factor that have the greatest impact on banking performance is the solvency ratio, followed by the nonperforming loans, the inflation rate and by the gross domestic product. So it can be observe that internal determinants have a biggest impact on the
Azizah, E.; Rusyaman, E.; Supian, S.
Stock price assessment, selection of optimum combination, and measure the risk of a portfolio investment is one important issue for investors. In this paper single index model used for the assessment of the stock price, and formulation optimization model developed using Lagrange multiplier technique to determine the proportion of assets to be invested. The level of risk is estimated by using variance. These models are used to analyse the stock price data Lippo Bank and Bumi Putera.
Full Text Available This article analyses the definition of the bank’s financial security and investment activities. It describes a few types of models of bank’s risks management and the method CAPM, which is chosen for use. In support for the chosen CAPM method, we included the mathematical model that allows elaborating an optimal investment portfolio. The model stands at the basis of this method and a case study of one of Ukrainian banks.
Full Text Available This article analyses the definition of the bank’s financial security and investment activities. It describes a few types of models of bank’s risks management and the method CAPM, which is chosen for use. In support for the chosen CAPM method, we included the mathematical model that allows elaborating an optimal investment portfolio. The model stands at the basis of this method and a case study of one of Ukrainian banks.
... 502 funds may be used to buy, build, rehabilitate, improve, or relocate an eligible dwelling and... added to the loan amount in excess of the area loan limit and appraised value of the house. (e) Loan...
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