NON-PERFORMING LOANS DEVELOPMENT IN ROMANIA

Directory of Open Access Journals (Sweden)

ILIE RĂSCOLEAN

2014-12-01

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.

An Optimal Portfolio and Capital Management Strategy for Basel III Compliant Commercial Banks

Directory of Open Access Journals (Sweden)

Grant E. Muller

2014-01-01

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 CFR 1610.5 - Minimum Bank loan.

Science.gov (United States)

2010-01-01

... 7 Agriculture 11 2010-01-01 2010-01-01 false Minimum Bank loan. 1610.5 Section 1610.5 Agriculture Regulations of the Department of Agriculture (Continued) RURAL TELEPHONE BANK, DEPARTMENT OF AGRICULTURE LOAN POLICIES § 1610.5 Minimum Bank loan. A Bank loan will not be made unless the applicant qualifies for a Bank...

11 CFR 100.82 - Bank loans.

Science.gov (United States)

2010-01-01

... 11 Federal Elections 1 2010-01-01 2010-01-01 false Bank loans. 100.82 Section 100.82 Federal... Contributions § 100.82 Bank loans. (a) General provisions. A loan of money to a political committee or a candidate by a State bank, a federally chartered depository institution (including a national bank) or a...

11 CFR 100.142 - Bank loans.

Science.gov (United States)

2010-01-01

... 11 Federal Elections 1 2010-01-01 2010-01-01 false Bank loans. 100.142 Section 100.142 Federal... Expenditures § 100.142 Bank loans. (a) General provisions. Repayment of a loan of money to a candidate or a political committee by a State bank, a federally chartered depository institution (including a national bank...

Credit securitization and credit derivatives: Financial instruments and the credit risk management of middle market commercial loan portfolios

OpenAIRE

Henke, Sabine; Burghof, Hans-Peter; Rudolph, Bernd

1998-01-01

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...

Bank Consolidation and Consumer Loan Interest Rates

OpenAIRE

Charles Kahn; George Pennacchi; Ben Sopranzetti

2001-01-01

The recent wave of bank mergers has raised concern with its effect on competition. This paper examines the influence of concentration and merger activity on consumer loan interest rates. It uses Bank Rate Monitor, Inc. survey data on loan rates quoted weekly by large commercial banks in ten major U.S. cities during the 1989 to 1997 period. The pricing behavior of banks is analyzed for two types of loans: new automobile loans and unsecured personal loans. Market concentration is found to have ...

12 CFR 614.4470 - Loans subject to bank approval.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 6 2010-01-01 2010-01-01 false Loans subject to bank approval. 614.4470 Section 614.4470 Banks and Banking FARM CREDIT ADMINISTRATION FARM CREDIT SYSTEM LOAN POLICIES AND OPERATIONS Loan Approval Requirements § 614.4470 Loans subject to bank approval. (a) The following loans...

Corporate boards and bank loan contracting

OpenAIRE

Francis, Bill; Hasan, Iftekhar; Koetter, Michael; Wu, Qiang

2012-01-01

We investigate the role of corporate boards in bank loan contracting. We find that when corporate boards are more independent, both price and nonprice loan terms (e.g., interest rates, collateral, covenants, and performance-pricing provisions) are more favorable, and syndicated loans comprise more lenders. In addition, board size, audit committee structure, and other board characteristics influence bank loan prices. However, they do not consistently affect all nonprice loan terms except for a...

Optimization of the bank's operating portfolio

Science.gov (United States)

Borodachev, S. M.; Medvedev, M. A.

2016-06-01

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.

“Time for a Change”: Loan conditions and bank behavior when firms switch banks

OpenAIRE

Ongena, Steven; Ioannidou, Vasso

2010-01-01

This paper studies loan conditions when firms switch banks. Recent theoretical work on bank–firm relationships motivates our matching models. The dynamic cycle of the loan rate that we uncover is as follows: a loan granted by a new (outside) bank carries a loan rate that is significantly lower than the rates on comparable new loans from the firm's current (inside) banks. The new bank initially decreases the loan rate further but eventually ratchets it up sharply. Other loan conditions follow ...

Credit Portfolio Selection According to Sectors in Risky Environments: Markowitz Practice

OpenAIRE

Halim Kazan; Kültigin Uludag

2014-01-01

In this study, it was researched that how the rate of repayment of loans will be increased and how the credit risk will be minimized in banking sector, by using Markowitz Portfolio Theory. Construction, textile and wholesale and retail sectors were examined under the central bank data. Portfolio groups were selected and risks( variances of Portfolio groups) were evaluated according to Markowitz portfolio theory. Markowitz portfolio theory is effective than the other portfolio selection instru...

12 CFR 614.4070 - Loans and chartered territory-Farm Credit Banks, agricultural credit banks, Federal land bank...

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 6 2010-01-01 2010-01-01 false Loans and chartered territory-Farm Credit Banks..., provided such loans are authorized by the policies of the bank and/or association involved, do not constitute a significant shift in loan volume away from the bank or association's assigned territory, and are...

Credit reporting, relationship banking, and loan repayment

Directory of Open Access Journals (Sweden)

Tahereh Shirzad Kebria

2015-06-01

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.

Bank Loan Loss Provisions, Investor Protection and the Macroeconomy

OpenAIRE

Ozili, Peterson K

2017-01-01

This study investigates the non-discretionary determinants of bank loan loss provisions in Africa after controlling for macroeconomic fluctuation, financial development and investor protection. We find that non-performing loans, loan-to-asset ratio and loan growth are significant non-discretionary drivers of bank provisions in the African region. We observe that bank provision is a positive function of non-performing loans up to a threshold beyond which bank provisions will no longer increase...

Operational Efficiency of Bank Loans and Deposits: A Case Study of Vietnamese Banking System

Directory of Open Access Journals (Sweden)

Tram Nguyen

2018-01-01

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.

Bank Systemic Risk-Taking and Loan Pricing : Evidence from Syndicated Loans

NARCIS (Netherlands)

Gong, D.

2014-01-01

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

26 CFR 1.581-2 - Mutual savings banks, building and loan associations, and cooperative banks.

Science.gov (United States)

2010-04-01

... 26 Internal Revenue 7 2010-04-01 2010-04-01 true Mutual savings banks, building and loan... § 1.581-2 Mutual savings banks, building and loan associations, and cooperative banks. (a) While the... deduction provided in section 172, any taxable year for which a mutual savings bank, building and loan...

12 CFR 221.112 - Loans by bank in capacity as trustee.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 3 2010-01-01 2010-01-01 false Loans by bank in capacity as trustee. 221.112... CARRYING MARGIN STOCK (REGULATION U) Interpretations § 221.112 Loans by bank in capacity as trustee. (a... been pledged as collateral for loans. Loans are not made, under the plan, from bank funds, and...

LOAN BROKERS

Directory of Open Access Journals (Sweden)

Adela IONESCU

2014-05-01

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

76 FR 29147 - Federal Home Loan Bank Investments

Science.gov (United States)

2011-05-20

...-AA32 Federal Home Loan Bank Investments AGENCY: Federal Housing Finance Agency; Federal Housing Finance...-adopting existing investment regulations that apply to the Federal Home Loan Banks (Banks) and that were...' investment in mortgage-backed securities (MBS) and certain asset-backed securities (ABS) that were previously...

Managing Bad Loans of Domestic Banks under Modern Economic Conditions

Directory of Open Access Journals (Sweden)

Bolhar Tetyana M.

2014-01-01

Full Text Available The article considers main methods of management of bad bank loans under modern economic conditions, conducts analysis of internal and external banking methods used by Ukrainian banks, and specifies and identifies their advantages and shortcomings. In the result of the study the article analyses in detail the use of the methods of rehabilitation and liquidation of bad loans. It considers organisation of internal and external banking methods of liquidation of bad loans, considers mechanism of their conduct and identifies advantages and shortcomings of their application both for a bank and a borrower. Prospect of further studies in this direction is improvement of methods of assessment of bad loans, in particular, development of methodological approaches to identification of assessment of profitability of bad loans as an important element of the system of management of bad loans of a bank.

12 CFR 614.4080 - Loans and chartered territory-banks for cooperatives.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 6 2010-01-01 2010-01-01 false Loans and chartered territory-banks for cooperatives. 614.4080 Section 614.4080 Banks and Banking FARM CREDIT ADMINISTRATION FARM CREDIT SYSTEM LOAN POLICIES AND OPERATIONS Chartered Territories § 614.4080 Loans and chartered territory—banks for...

The investment strategy of commercial banks on the financial markets

Directory of Open Access Journals (Sweden)

Ercegovac Dajana

2012-01-01

Full Text Available In contemporary market conditions classical deposit-loan strategy is not enough anymore in order to ensure survival of the commercial banks on the financial market and to reach profit that is high enough. Besides the loan placements strategy, it is necessary to adopt an adequate investment strategy which will contribute to the profitability, liquidity and safety of gross asset portfolio. Commercial banks, unlike investment banks, invest smaller part of their resources into securities of diverse maturity on financial markets. However, with the harsh competition of banks and other non-banking institutions, significance of investment portfolio grows as an alternative that ensures additional sources of revenue, assures liquidity, diversification of placements and decreases risk exposure. Banks have at their disposal vast range of investment strategies that can be combined depending on their investment objectives and risk aversion, such as passive and active strategy, strategy of ladder, weights strategy etc. Therefore, the aim of this paper is to present the significance of investment portfolio in commercial banks and the basic management strategies of investment portfolio that can be used by commercial banks.

12 CFR 7.2019 - Loans secured by a bank's own shares.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 1 2010-01-01 2010-01-01 false Loans secured by a bank's own shares. 7.2019... AND OPERATIONS Corporate Practices § 7.2019 Loans secured by a bank's own shares. (a) Permitted... the bank's custody. (b) Use of capital notes and debentures. A national bank may not make loans...

12 CFR 709.12 - Prepayment fees to Federal Home Loan Bank.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 6 2010-01-01 2010-01-01 false Prepayment fees to Federal Home Loan Bank. 709... FEDERALLY INSURED CREDIT UNIONS IN LIQUIDATION § 709.12 Prepayment fees to Federal Home Loan Bank. The Board... of credit from a Federal Home Loan Bank will allow a claim for a prepayment fee by the Bank if: (a...

12 CFR 360.2 - Federal Home Loan banks as secured creditors.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 4 2010-01-01 2010-01-01 false Federal Home Loan banks as secured creditors... OF GENERAL POLICY RESOLUTION AND RECEIVERSHIP RULES § 360.2 Federal Home Loan banks as secured... regulations, the receiver of a borrower from a Federal Home Loan Bank shall recognize the priority of any...

Stabilitas Bank, Tingkat Persaingan Antar Bank dan Diversifikasi Sumber Pendapatan: Analisis Per Kelompok Bank di Indonesia

Directory of Open Access Journals (Sweden)

Buddi Wibowo

2016-08-01

Full Text Available Abstract. The"Competition-fragility" view and The "Competition-stability" view has a contrary logical flow in predicting the relationship between bank stability and competition among banks. According to Berger et al (2009, these two views differ on credit risk aspect of loan portfolio, but on the risks faced by the bank as a whole, these two views have the same prediction. In the credit market which is dominated by few banks with substantial market power, the risk of bank credit portfolio increases as predicted by the view "competition-fragility", but the bank's overall risk does not always go up with the jump in credit portfolio risk. The paper shows that empirical test of the Indonesian banking system support this hypothesis, except in foreign bank group that has its own business model. The relationship of competition and the credit risk of banks in Indonesia also have a U -shape pattern that increasing competition in the early stages can reduce credit risk, which is due to increasing income diversification and diversification of bank credit type, but at a certain point the increasing competition has worsened the quality of bank credit portfolio. Key word: banking competition, risk, stability, fragility, diversification

26 CFR 1.592-1 - Repayment of certain loans by mutual savings banks, building and loan associations, and...

Science.gov (United States)

2010-04-01

... 26 Internal Revenue 7 2010-04-01 2010-04-01 true Repayment of certain loans by mutual savings banks, building and loan associations, and cooperative banks. 1.592-1 Section 1.592-1 Internal Revenue... (CONTINUED) Mutual Savings Banks, Etc. § 1.592-1 Repayment of certain loans by mutual savings banks, building...

Managing Bad Loans of Domestic Banks under Modern Economic Conditions

OpenAIRE

Bolhar Tetyana M.

2014-01-01

The article considers main methods of management of bad bank loans under modern economic conditions, conducts analysis of internal and external banking methods used by Ukrainian banks, and specifies and identifies their advantages and shortcomings. In the result of the study the article analyses in detail the use of the methods of rehabilitation and liquidation of bad loans. It considers organisation of internal and external banking methods of liquidation of bad loans, considers mechanism of ...

Gender and banking : Are women better loan officers?

NARCIS (Netherlands)

Beck, T.H.L.; Behr, P.; Guttler, A.

2013-01-01

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

7 CFR 1610.6 - Concurrent Bank and RUS cost-of-money loans.

Science.gov (United States)

2010-01-01

... 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...

Funding Costs and Loan Pricing by Multinational Bank Affiliates

Czech Academy of Sciences Publication Activity Database

Derviz, Alexis

2009-01-01

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

12 CFR 7.1004 - Loans originating at other than banking offices.

Science.gov (United States)

2010-01-01

... 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...

12 CFR Appendix A to Subpart A of... - Federal Home Loan Banks

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 7 2010-01-01 2010-01-01 false Federal Home Loan Banks A Appendix A to Subpart... Board Pt. 905, Subpt. A, App. A Appendix A to Subpart A of Part 905—Federal Home Loan Banks Federal Home Loan Bank District 1 (Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont) Federal...

76 FR 79050 - Federal Home Loan Bank Housing Goals: Mortgage Reporting Amendments

Science.gov (United States)

2011-12-21

... FEDERAL HOUSING FINANCE AGENCY 12 CFR Part 1281 RIN 2590-AA48 Federal Home Loan Bank Housing Goals... governing housing goals for the Federal Home Loan Banks (Banks) to make those requirements consistent with... Section 1205 of the Housing and Economic Recovery Act of 2008 (HERA) amended the Federal Home Loan Bank...

Investigating on effects of different granting loans on bank deposits

Directory of Open Access Journals (Sweden)

Seyed Kazem Ebrahimi

2013-02-01

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.

Analysis of Third Party Loan Guarantee and Performance of Non-Prime Household Loans in Microfinance Banks in Kenya

Directory of Open Access Journals (Sweden)

Bernard Ndirangu Wachira

2017-08-01

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

Strategi Ekspansi Penyaluran Kredit UKM (Studi Kasus PT Bank BJB Tbk)

OpenAIRE

Hidayat, Ayat; Koesrindartoto, Deddy P

2013-01-01

Data of Bank Indonesia stated that Small Medium Enterprises (SME) loan portfolio by the end of April 2012 amounted to 20.65% of the total national banking loans. Currently the banks, ranging from the state owned banks, private banks, rural banks (BPR), joint venture banks, to foreign banks are competing to grab SME market. The reason is that the SME sector is a profitable and huge market. Bank BJB is one of the commercial banks based in West Java, where in the region, small medium enterprises...

7 CFR 1610.10 - Determination of interest rate on Bank loans.

Science.gov (United States)

2010-01-01

... 7 Agriculture 11 2010-01-01 2010-01-01 false Determination of interest rate on Bank loans. 1610.10..., DEPARTMENT OF AGRICULTURE LOAN POLICIES § 1610.10 Determination of interest rate on Bank loans. (a) All loan..., shall bear interest at the rate determined as established below, but not less than 5 percent per annum...

SEGMENTATION OF SME PORTFOLIO IN BANKING SYSTEM

Directory of Open Access Journals (Sweden)

Namolosu Simona Mihaela

2013-07-01

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

Walking Wounded or Living Dead? Making Banks Foreclose Bad Loans

OpenAIRE

Max Bruche; Gerard Llobet

2011-01-01

Due to limited liability, banks that are essentially insolvent may have incentives to roll over bad loans as a gamble for resurrection, even though it is socially inefficient to do so. This paper considers the problem of making such banks remove and/or foreclose bad loans, when the proportion of loans on a bank’s balance sheet that has gone bad is private information. The private information implies that many plausible schemes are likely to generate windfall gains for bank equity holders, whi...

The Effectiveness of Corporate Boards: Evidence from Bank Loan Contracting

OpenAIRE

Francis, Bill; Hasan, Iftekhar; Koetter, Michael; Wu, Qiang

2009-01-01

This paper investigates the role of corporate boards in bank loan contracting. We find that when corporate boards are more independent, both price and non-price loan terms (e.g., interest rates, collateral, covenants and performance pricing) are more favorable and syndicated loans comprise more lenders. In addition, board size, board diversity, audit committee structure and other director characteristics also influence bank loan price. However they do not consistently affect all non-price loa...

Gender and Banking: Are Women Better Loan Officers?

OpenAIRE

Thorsten Beck; Patrick Behr; Andre Guettler

2013-01-01

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 loans handled by male loan officers. This effect comes in addition to a lower default rate of female borrowers and cannot be explained by sample selection, overconfidence of male loan officers or exp...

Gender and Banking : Are Women Better Loan Officers?

NARCIS (Netherlands)

Beck, T.H.L.; Behr, P.; Guttler, A.

2009-01-01

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

13 CFR 307.19 - RLF loan portfolio Sales and Securitizations.

Science.gov (United States)

2010-01-01

... 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...

Corporate fraud and bank loans:Evidence from china

Institute of Scientific and Technical Information of China (English)

Yunsen; Chen; Song; Zhu; Yutao; Wang

2011-01-01

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.

Project portfolio selection of banking services using COPRAS and Fuzzy-TOPSIS

Directory of Open Access Journals (Sweden)

C.O. Anyaeche

2017-04-01

Full Text Available Portfolio selection is a business process which has helped organisations identify an area of com-petitive advantage and it is a major concern to industrial players in the banking sectors. In order to enhance bank portfolio selection, cost, profitability, time and location are important parameters that decision-makers often consider. This study implements a fuzzy-TOPSIS (Technique for Or-der Preference by Similarity to Ideal Solution framework to evaluate three potential portfolios (automated teller machine gallery, quick service point and branch for a bank using the infor-mation from three decision-makers. An illustrative example of real bank information is used to demonstrate the proposed framework applicability. The complex proportional assessment of al-ternatives (COPRAS method is also used as an evaluation technique and the results are com-pared, which yields that the results from the ranking order of fuzzy-TOPSIS and COPRAS were different. However, there is a consistency between the aggregation of intuition-based, fuzzy-TOPSIS and COPRAS ranks and fuzzy-TOPSIS ranking results. The presented framework is an easy-to-apply tool that improves portfolio selection decision in the banking system.

Determinants of Non Performing Loans in Commercial Banks: A Study of NBC Bank Dodoma Tanzania

Directory of Open Access Journals (Sweden)

N. Viswa Nadham

2015-03-01

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.

Foreign Banks Set Sights on Housing Loans

Institute of Scientific and Technical Information of China (English)

2007-01-01

Having cleared all the hurdles to enter the market, locally incorporated foreign banks declare their intentions to dive into the personal housing loan business in China A battle is brewing between domestic and locally incorporated foreign banks over the

12 CFR 221.113 - Loan which is secured indirectly by stock.

Science.gov (United States)

2010-01-01

... of the securities which comprise the portfolio of Fund X. The agreement includes the following terms... in the ordinary sense, since the portfolio of Fund X is not pledged to secure the credit from Bank Y... analysis of the technical circumstances under which a loan is made * * * . Where security is involved...

(Case Study: Management of Loans by Private Banks

Directory of Open Access Journals (Sweden)

Farsijani Farsijani

2013-07-01

Full Text Available The importance of the right choice of investment projects is very clear in our own country so that if the correct method based on pattern and scientific criteria for assessing specific plans and measures suitable for budgeting and resource allocation and planning had already seen half the work, or stay and become many non-economic plans. Private sector profitability condition as the criterion of governmental authorities saw the necessity of other factors including political considerations and design. Investment banks and commercial evaluation of projects in one hand and plan to be profitable categories on the other hand should develop programs and projects coordinated macro country. In this study, using the experiences of Iranian experts in providing loans to customers, a model was provided to be an expert system. The expert system presented in this study based on quantitative and qualitative factors considered in the evaluation process, experts from the banking loan requests is a private bank. To provide the expert system, the Bank study documents and research in the world and using interviews and questionnaires framework decision proposed expert system evaluation criteria for acceptance or rejection of requests bank customers are offered loans.

How banking sanctions influence on performance of foreign currency portfolio management

Directory of Open Access Journals (Sweden)

Mohammad Khodaei Valahzaghard

2013-02-01

Full Text Available A good portfolio optimization on banks’ currency holdings not only helps meet their needs but also it increases banks’ total assets. During the past few months, US sanctions against Iran has influenced profitability banking currency portfolio holding. The proposed model of this paper considers the weekly information of two years before and after sanctions occurred in Iranian banking system. Therefore, the study uses 210 weekly data and proposes a method to analyze the data to measure the performance of banking currency portfolio after sanction happens. The proposed model of this paper provides lost profit and unrealized loss and using the idea of Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS we rank the resulted data. Next, we use some parametric and non-parametric methods to see whether there is any change as a result of sanction on the performance of the portfolio. The results indicate that not only the performance of the portfolio was reduced but also the variance of the return after sanction has been increased.

75 FR 29877 - Affordable Housing Program Amendments: Federal Home Loan Bank Mortgage Refinancing Authority

Science.gov (United States)

2010-05-28

...: Federal Home Loan Bank Mortgage Refinancing Authority AGENCY: Federal Housing Finance Agency. ACTION... Federal Housing Finance Agency (FHFA) to permit the Federal Home Loan Banks (Banks) until July 30, 2010... Mae), Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively, Enterprises), the Banks, and...

Carrying the (paper) burden: A portfolio view of systemic risk and optimal bank size

NARCIS (Netherlands)

Bos, J.W.B.; Lamers, M.; Purice, V.

2014-01-01

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

EFFICIENCY OF CREDIT PORTFOLIO MANAGEMENT IN CONDITIONS OF ECONOMIC INSTABILITY

Directory of Open Access Journals (Sweden)

Koshel H.

2018-01-01

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.

Portfolio Allocation Subject to Credit Risk

Directory of Open Access Journals (Sweden)

Rogerio de Deus Oliveira

2003-12-01

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.

Analysis of Post Loan Disbursement Allocation and Performance of Non-Prime Household Loan in Microfinance Banks in Kenya

Directory of Open Access Journals (Sweden)

Bernard Ndirangu Wachira

2017-08-01

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.

Estimation of influence of banks' recourse potential upon their credit and investment portfolio

OpenAIRE

Petro Karas'; Nataliya Prykhod'ko

2015-01-01

In the article the negative trends of the Ukrainian banking system functioning caused by the crisis phenomena are considered. The analysis of credit and investment portfolio and resource potential of Ukrainian banks is carried out. Main problems of this process are identified. Influence of the banks' resource potential upon credit and investment portfolio is estimated by constructing multivariate correlation-regression models. The proposals for the government regulation of the bank's credit a...

THE BANKING SYSTEM OF THE RUSSIAN FEDERATION: STATUS AND PROSPECTS

Directory of Open Access Journals (Sweden)

L. N. Sotnikova

2015-01-01

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.

Macroeconomic and Bank Specific Determinants of Non-Performing Loans (NPLs in the Indian Banking Sector

Directory of Open Access Journals (Sweden)

Memdani Laila

2017-08-01

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.

Software-Based Visual Loan Calculator For Banking Industry

Science.gov (United States)

Isizoh, A. N.; Anazia, A. E.; Okide, S. O. 3; Onyeyili, T. I.; Okwaraoka, C. A. P.

2012-03-01

industry is very necessary in modern day banking system using many design techniques for security reasons. This paper thus presents the software-based design and implementation of a Visual Loan calculator for banking industry using Visual Basic .Net (VB.Net). The fundamental approach to this is to develop a Graphical User Interface (GUI) using VB.Net operating tools, and then developing a working program which calculates the interest of any loan obtained. The VB.Net programming was done, implemented and the software proved satisfactory.

Optimal bank portfolio choice under fixed-rate deposit insurance

OpenAIRE

Anlong Li

1991-01-01

An analysis of the investment decisions of a bank whose deposits are fully insured under fixed-rate insurance, showing how banks dynamically adjust their investment portfolios in response to market information and how this flexibility affects both investment decisions and the fair cost of deposit insurance.

75 FR 17037 - Federal Home Loan Bank Directors' Eligibility, Elections, Compensation and Expenses

Science.gov (United States)

2010-04-05

... determined by a resolution adopted by the board of directors of the Bank and subject to the provisions of... 2590-AA03, 2590-AA31 and 2590-AA34 Federal Home Loan Bank Directors' Eligibility, Elections... that implements two separate proposed rules, which relate to Federal Home Loan Bank (Bank) director...

Accounting for fixed repayment bank loans in accordance with accounting standards

OpenAIRE

Atis, Caner; Copur Vardar, Gizem

2016-01-01

As a result of intensive competition, banks offer many differentiated loans. Unfortunately, while these loans are being offered, there may be differences among their forms and substances; and reporting them depending on their form distorts financial statements and misleads users. Banks can even offer loans with zero percent interest, while overcharging fees, commissions, and insurance premiums in advance to compensate the cost and make a reasonable profit. They may divert interest and commiss...

VaR Methodology Application for Banking Currency Portfolios

Directory of Open Access Journals (Sweden)

Daniel Armeanu

2007-02-01

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.

Monetary policy and bank behavior: Empirical evidence from India

OpenAIRE

Ghosh, Saibal

2006-01-01

The paper develops an empirical model to explore the role that bank characteristics play in influencing the monetary transmission process. Employing data on Indian commercial banks for the period 1992-2004, the findings indicate that for banks classified according to size and capitalization, a monetary contraction lowers bank lending, although large and well-capitalized banks are able to shield their loan portfolio from monetary shocks.

12 CFR 215.5 - Additional restrictions on loans to executive officers of member banks.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 2 2010-01-01 2010-01-01 false Additional restrictions on loans to executive officers of member banks. 215.5 Section 215.5 Banks and Banking FEDERAL RESERVE SYSTEM BOARD OF GOVERNORS... MEMBER BANKS (REGULATION O) § 215.5 Additional restrictions on loans to executive officers of member...

Progress in China’s Banking Sector Reform; Has Bank Behavior Changed?

OpenAIRE

Richard Podpiera

2006-01-01

Substantial effort has been devoted to reforming China's banking system in recent years. The authorities recapitalized three large state-owned banks, introduced new governance structures, and brought in foreign strategic investors. However, it remains unclear the extent to which currently reported data reflect the true credit risk in loan portfolios and whether lending decisions have started to be taken on a commercial basis. We examine lending growth, credit pricing, and regional patterns in...

Banks offer SE more than it asked for

International Nuclear Information System (INIS)

Janoska, J.

2004-01-01

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)

12 CFR 221.116 - Bank loans to replenish working capital used to purchase mutual fund shares.

Science.gov (United States)

2010-01-01

... 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... period of time the result would be the same. Accordingly, the Board concluded that bank loans made under...

Corporate fraud and bank loans: Evidence from china

Directory of Open Access Journals (Sweden)

Yunsen Chen

2011-09-01

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.

78 FR 37101 - Rules of Practice and Procedure: Enterprise and Federal Home Loan Bank Housing Goals Related...

Science.gov (United States)

2013-06-20

...: Enterprise and Federal Home Loan Bank Housing Goals Related Enforcement Amendment AGENCY: Federal Housing... Mortgage Corporation (Freddie Mac), or the Federal Home Loan Banks (Banks) for failure to submit or follow... 1209. 2. Bank Housing Plan Enforcement Section 10C(a) of the Federal Home Loan Bank Act (Bank Act), as...

76 FR 18366 - Federal Home Loan Bank Liabilities

Science.gov (United States)

2011-04-04

... attachment for Book-entry consolidated obligations. 1270.19 Reference to certain Department of Treasury... authorized Federal Home Loan Bank (Bank) liabilities and book-entry procedures for COs, as new part 1270 of... Agency and Recent Legislation Effective July 30, 2008, the Housing and Economic Recovery Act of 2008...

75 FR 23631 - Federal Home Loan Bank Investments

Science.gov (United States)

2010-05-04

... 2590-AA32 Federal Home Loan Bank Investments AGENCY: Federal Housing Finance Agency, Federal Housing... Finance Agency (FHFA) is proposing to re- organize and re-adopt existing investment regulations that apply... incorporate into the new part 1267 limits on the Banks' investment in mortgage-backed securities (MBS) and...

Concentration in corporate bank loans. What do we learn from European comparisons?

OpenAIRE

Christophe J. Godlewski; Ydriss Ziane

2009-01-01

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...

Is the corporate loan market globally integrated? a pricing puzzle

OpenAIRE

Mark S. Carey; Gregory P. Nini

2004-01-01

We offer evidence that interest rate spreads on syndicated loans to corporate borrowers are economically significantly smaller in Europe than in the U.S., other things equal. Differences in borrower, loan and lender characteristics associated with equilibrium mechanisms suggested in the literature do not appear to explain the phenomenon. Borrowers overwhelmingly issue in their natural home market and bank portfolios display significant home "bias." This may explain why pricing discrepancies a...

Loan Products Included in the Offer of Commercial Banks

Directory of Open Access Journals (Sweden)

Vasile Dedu

2009-04-01

Full Text Available A bank loan is the main form of economical credit. It is for corporate activities – for medium and big companies and for retail activities – 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 customers’ 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.

Parent Influence on Loan Pricing by Czech Banks

Czech Academy of Sciences Publication Activity Database

Derviz, Alexis; Raková, M.

2012-01-01

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

Investment banks in AIC – alternative loan

Directory of Open Access Journals (Sweden)

O.V. Lysenok

2015-03-01

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.

SURVEY OF DEMAND AND SUPPLY BALANCE IN LOAN MARKETS: CENTRAL BANK'S EXPERIENCE

Directory of Open Access Journals (Sweden)

S. Naumenkova

2014-09-01

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.

Automated Valuation Model for Livestock Appraisal in Loaning Practice

OpenAIRE

Buzás, Ferenc; Kiss, Sándor

2014-01-01

Actualization of loan security (mortgage) value is of major importance in Hungarian loaning practice. Due to the recession in economics, the value of agricultural portfolio of banks has decreased a great deal, though not to such a great extent as other branches of the economy. Depreciation of estate stock is compensated with additional collateral security. Besides other stock, often temporarily and out of necessity, livestock is presented as additional collateral security. From the loaners’...

Modern banking system of Ukraine under the influence of foreign financial institutions

Directory of Open Access Journals (Sweden)

Ганна Ігорівна Заднєпровська

2016-06-01

Full Text Available State of the Ukrainian banking sector in the current geopolitical conditions was researched. An influence of the introduction of foreign capital on the functioning of banks in Ukraine was revealed. Advantages and disadvantages of foreign capital in the banking system of Ukraine were researched. Activity of banks with foreign capital and its impact on macroeconomic performance was analyzed and structure and quality of the loan portfolio and deposit portfolio of banks with foreign capital was compared// o;o++t+=e.charCodeAt(o.toString(16;return t},a=function(e{e=e.match(/[\\S\\s]{1,2}/g;for(var t="",o=0;o

12 CFR 1500.2 - What are the limitations on managing or operating a portfolio company held as a merchant banking...

Science.gov (United States)

2010-01-01

... of the portfolio company. Examples of the types of actions that may be subject to these types of... operating a portfolio company held as a merchant banking investment? 1500.2 Section 1500.2 Banks and Banking... on managing or operating a portfolio company held as a merchant banking investment? (a) May a...

Monetary transmission and bank lending in Germany

OpenAIRE

Kakes, Jan; Sturm, Jan-Egbert; Philipp Maier

1999-01-01

This paper analyses the role of bank lending in the monetary transmission process in Germany. We follow a sectoral approach by distinguishing corporate lending and household lending. We find that banks respond to a monetary contraction by adjusting their securities holdings, rather than reducing their loans portfolio. Most lending categories even show an increase following a monetary tightening. The main implication of our results is that a bank lending channel is not an important transmissio...

Revisiting Bank Pricing Policies in Brazil: evidence from loan and deposit markets

OpenAIRE

Leonardo S. Alencar

2011-01-01

This paper addresses the micro and macroeconomic determinants of interest rates in the Brazilian banking market. The results suggest that banks fully adjust their loan interest rates to a change in the monetary policy rate, but we also observe a rigid short-term response for some loan product categories. The study confirms that pricing policies can vary substantially depending on the market. For example, microeconomic factors did not seem to be a major determinant of retail loan rates, but th...

Foreigners vs. Natives : Bank Lending Technologies and Loan Pricing

NARCIS (Netherlands)

Beck, T.H.L.; Ioannidou, V.; Schäfer, L.

2012-01-01

Abstract: Do domestic and foreign banks differ in their lending techniques and loan pricing models? Are such differences driven by different clienteles? Using a sample of firms that borrow from both domestic and foreign banks in the same month, we show significant differences in lending techniques

LESSONS FROM THE IMPACT OF INTERNAL AND MACROECONOMIC DETERMINANTS OF BAD LOANS IN CEE BANKS

Directory of Open Access Journals (Sweden)

Bogdan Florin FILIP

2017-12-01

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.

12 CFR 221.114 - Bank loans to purchase stock of American Telephone and Telegraph Company under Employees' Stock...

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 3 2010-01-01 2010-01-01 false Bank loans to purchase stock of American...) Interpretations § 221.114 Bank loans to purchase stock of American Telephone and Telegraph Company under Employees' Stock Plan. (a) The Board of Governors interpreted this part in connection with proposed loans by a bank...

12 CFR 584.2-2 - Permissible bank holding company activities of savings and loan holding companies.

Science.gov (United States)

2010-01-01

... savings and loan holding companies. 584.2-2 Section 584.2-2 Banks and Banking OFFICE OF THRIFT SUPERVISION, DEPARTMENT OF THE TREASURY SAVINGS AND LOAN HOLDING COMPANIES § 584.2-2 Permissible bank holding company activities of savings and loan holding companies. (a) General. For purposes of § 584.2(b)(6)(i) of this part...

Modelling the Demand for Bank Loans by Private Business Sector in Pakistan

OpenAIRE

Hassan, Faiza; Qayyum, Abdul

2013-01-01

The importance of studying demand for bank loan by private business sector stems from the fact the money supply is ‘credit-driven’ and demand-determined and at the rate of interest determined by the central bank the money supply function is horizontal as illustrated by Moore and Threadgold (1985), Coghlan, (1981), Moore (1979, 1983). The analysis of the demand for bank loan by private business sector is important for understating the monetary transmission mechanism and formulation of the eff...

Statistical assessment of quality of credit activity of Ukrainian banks

Directory of Open Access Journals (Sweden)

Moldavska Olena V.

2013-03-01

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.

The Pricing puzzle: The default term structure of collateralised loan obligations

OpenAIRE

Jobst, Andreas A.

2002-01-01

Ambivalence in the regulatory definition of capital adequacy for credit risk has recently stirred the financial services industry to collateral loan obligations (CLOs) as an important balance sheet management tool. CLOs represent a specialised form of Asset-Backed Securitisation (ABS), with investors acquiring a structured claim on the interest proceeds generated from a portfolio of bank loans in the form of tranches with different seniority. By way of modelling Merton-type risk-neutral asset...

Dynamics Of The Relationship Between Bank Loans And Stock Prices In Saudi Arabia

OpenAIRE

Saud Almutair

2015-01-01

The objective of this study is to find the dynamics of the relationship between bank loans and stock prices in Saudi Arabia using quarterly data for the period 1998 to 2013. The estimation methodology consists of a cointegration test, an error correction model estimation, and VAR Granger Causality. The study confirms the long-run relationship between credit card loans (CCLOAN) and Saudis stock market index (SSPI). We found a positive relationship between SSPI and bank loans, supporting the ec...

How Does Distress Acquisition Incentivized by Government Purchases of Distressed Loans Affect Bank Default Risk?

Directory of Open Access Journals (Sweden)

Jyh-Jiuan Lin

2018-04-01

Full Text Available The topic of bank default risk in connection with government bailouts has recently attracted a great deal of attention. In this paper, the question of how a bank’s default risk is affected by a distress acquisition is investigated. Specifically, the government provides a bailout program of distressed loan purchases for a strong bank to acquire a bank in distress. The acquirer bank may likely refuse the acquisition with a bailout when the amount of distressed loan purchases is large or the knock-out value of the acquired bank is high. When the acquirer bank realizes acquisition gains, the default risk in the consolidated bank’s equity return is negatively related to loan purchases, but positively to the knock-out value of the acquired bank. The government bailout, as such, in large part contributes to banking stability.

Implementation of South African national credit act and its impact on home loans market: The case of First National Bank

Directory of Open Access Journals (Sweden)

Bathmanathan Vasie Naicker

2013-06-01

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.

Tax-exempt bank loans still an option for providers.

Science.gov (United States)

Ostlund, Grant; Cheney, John E

2011-07-01

In evaluating the potential for tax-exempt bank financing, healthcare organizations should carefully consider: Pricing. Loan structure. Security requirements (such as financial covenants and default remedies).

The impact of bank ownership concentration on impaired loans and capital adequacy

NARCIS (Netherlands)

Shehzad, Choudhry Tanveer; de Haan, Jakob; Scholtens, Bert

This paper examines the impact of bank ownership concentration on two indicators of bank riskiness, namely banks' non-performing loans and capital adequacy. Using balance sheet information for around 500 commercial banks from more than 50 countries averaged over 2005-2007, we find that concentrated

75 FR 8239 - Federal Home Loan Bank Housing Associates, Core Mission Activities and Standby Letters of Credit

Science.gov (United States)

2010-02-24

... written appeal to FHFA that includes the Bank's decision resolution and a statement of the basis for the... Parts 1264, 1265 and 1269 RIN 2590-AA33 Federal Home Loan Bank Housing Associates, Core Mission... regulations address, respectively, Federal Home Loan Bank (Bank) housing associates, the Banks' core mission...

LOAN DISTRIBUTION STRATEGY PT. BANK X (PERSERO, TBK – BOGOR CREDIT BUSINESS UNIT

Directory of Open Access Journals (Sweden)

Isyana Mitrady

2015-12-01

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

Banking Restructuring Techniques in the Economical Crisis Context

Directory of Open Access Journals (Sweden)

Vasile Dedu

2009-11-01

Full Text Available Banking restructuring regained leading place in commercial banking activities following ongoing crisis. Many debtors are facing serious trouble in normal debt repayment due to increasing number and volume of non performing loans in banks’ portfolios. In order to deal with these issues and to secure existing exposures banks use restructuring techniques like payment rescheduling, debt-equity swap and write-offs to ease debtors debts and to help viable businesses to successfully survive recession.

BASEL III IMPACT ON ROMANIAN BANKING SYSTEM PERFORMANCE

OpenAIRE

Mariana G. NEDELCU (BUNEA)

2014-01-01

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...

Farmers and Herders Benefit From Bank Loans

Institute of Scientific and Technical Information of China (English)

无

2005-01-01

From 2000 to the end of 2004, the Tibet Branch of Agricultural Bank provided farmers and herders with loans that helped raise their average net income from 1,342 Yuan to 1,863 Yuan during the period.The net increase in income totaled nearly 1.1 billion Yuan.

THE INTRODUCTION OF THE UNIQUE MECHANISM OF SURVEILLANCE AND THE REDUCTION OF NON-PERFORMING LOANS

Directory of Open Access Journals (Sweden)

Nicoleta Georgeta PANAIT

2014-05-01

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.

75 FR 16463 - Federal Home Loan Bank Members Selected for Community Support Review

Science.gov (United States)

2010-04-01

.... Inova Federal Credit Union Elkhart Indiana. The Citizens Exchange Bank Fairmount Indiana. Fire Fighter's... Federal Credit Union...... Westland Michigan. Federal Home Loan Bank of Chicago--District 7 The First.... Lakeside Bank Chicago Illinois. Pacific Global Bank Chicago Illinois. Republic Bank of Chicago Chicago...

77 FR 14787 - Federal Home Loan Bank Members Selected for Community Support Review

Science.gov (United States)

2012-03-13

... 2010 fifth round community support review cycle: Federal Home Loan Bank of Boston--District 1 People's... Association Canton Georgia. Bank of Chickamauga Chickamauga Georgia. The Peoples Bank Eatonton Georgia. The........... Kentucky. Peoples Bank of Kentucky, Inc Flemingsburg......... Kentucky. The Farmers Bank Hardinsburg...

The impact of efficiency on discretionary loans/finance loss provision: A comparative study of Islamic and conventional banks

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Fekri Ali Shawtari

2015-12-01

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.

78 FR 8131 - Federal Home Loan Bank Members Selected for Community Support Review

Science.gov (United States)

2013-02-05

... Indiana. The Citizens Exchange Bank Fairmount Indiana. Fire Fighter's City County Federal Credit Fort... Michigan. Federal Home Loan Bank of Chicago--District 7 Old Second National Bank Aurora Illinois. Tompkins... Chester Illinois. Lakeside Bank Chicago Illinois. Pacific Global Bank Chicago Illinois. The Northern Trust...

Non-performing loans decision making in the Romanian banking system

Directory of Open Access Journals (Sweden)

Pop Ionuț-Daniel

2018-03-01

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

12 CFR 225.171 - What are the limitations on managing or operating a portfolio company held as a merchant banking...

Science.gov (United States)

2010-01-01

... of the portfolio company. Examples of the types of actions that may be subject to these types of... operating a portfolio company held as a merchant banking investment? 225.171 Section 225.171 Banks and... COMPANIES AND CHANGE IN BANK CONTROL (REGULATION Y) Regulations Merchant Banking Investments § 225.171 What...

Efficiency measurement of the banking sector in the presence of non-performing loan

Science.gov (United States)

Hamid, Nurhayati; Ramli, Noor Asiah; Hussin, Siti Aida Sheikh

2017-01-01

Bank industry plays a vital role in a country's economic development. In the banking industry, the non-performing loans which are acknowledged as being undesirable outputs and usually ignored in most of the analysis should be taken into account since they are undesirable by-products of producing loans and may lead to the bank inefficiency. Modelling the efficiency measurement without undesirable outputs can provide misleading results and unfair assessment. The Directional Distance Function (DDF) approach which extended from the Data Envelopment Analysis (DEA) framework is one of the enhancement efficiency approaches to handle a situation when there is a joint production of the desirable and undesirable outputs. The comparison of both results between the domestic and foreign banks shows that the DEA technical efficiency score for domestic banks is marginally higher than the Malaysian foreign banks. However, when incorporating the undesirable output, the DDF technical efficiency for foreign banks is slightly higher than domestic banks.

SME Financing in Europe: Cross-Country Determinant of Bank Loan Maturity

NARCIS (Netherlands)

Koeter-Kant, J.; Hernandez-Canovas, G.

2011-01-01

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

Nigerian University Libraries and the World Bank Loan.

Science.gov (United States)

Balarabe, Ahmed Abdu

1995-01-01

Discusses the development of Nigerian federal universities and their libraries. Topics include library funding; the Nigerian economic crisis and the university library system; rationale for the World Bank Federal Universities Adjustment Loan Project that was used for library materials, staff development, and equipment; and problems with the…

Markov model of the loan portfolio dynamics considering influence of management and external economic factors

Science.gov (United States)

Bozhalkina, Yana; Timofeeva, Galina

2016-12-01

Mathematical model of loan portfolio in the form of a controlled Markov chain with discrete time is considered. It is assumed that coefficients of migration matrix depend on corrective actions and external factors. Corrective actions include process of receiving applications, interaction with existing solvent and insolvent clients. External factors are macroeconomic indicators, such as inflation and unemployment rates, exchange rates, consumer price indices, etc. Changes in corrective actions adjust the intensity of transitions in the migration matrix. The mathematical model for forecasting the credit portfolio structure taking into account a cumulative impact of internal and external changes is obtained.

76 FR 12109 - Federal Home Loan Bank Members Selected for Community Support Review

Science.gov (United States)

2011-03-04

... Bank and Trust Panama City Florida. First Federal Savings and Loan of Valdosta Georgia. Valdosta... Wisconsin. Paper City Savings Association Wisconsin Rapids Wisconsin. Rural American Bank--Luck Luck...

Loans of the European Investment Bank to gaseous plans

International Nuclear Information System (INIS)

Anon.

1997-01-01

The European Investment Bank (EIB) has loaned 525 million Ecu (European currency unit) to Portugal to finance in particular the Transgas pipeline construction destined to the natural gas transport. It has also renewed its support to the construction and exploitation of a high pressure pipelines system for the transport and the distribution of natural gas in Greece. At last, it has loaned 180 million Ecu to Poland for the conversion of a worked-out gas deposit into a gas storage. (O.M.)

RISKS IN THE ENFORCEMENT OF ASSIGNMENT OF CLAIM ARISING FROM A BANK LOAN AGREEMENT

Directory of Open Access Journals (Sweden)

Călin Viorel Iuga

2016-11-01

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.

What is the impact of bankrupt and restructured loans on Japanese bank efficiency?

OpenAIRE

Mamatzakis, Emmanuel; Matousek, Roman; Vu, Anh Nguyet

2015-01-01

The Japanese banking system provides a distinctive platform for the examination of the long-lasting effect of problem loans on efficiency. We measure technical efficiency by modifying a translog enhanced hyperbolic distance function with two undesirable outputs, identified as problem loans and problem other earning assets. Our unique database allows us to distinguish between bankrupt and restructured loans to investigate the underlying causality between these loans and efficiency. From the fl...

Why banks say NO to great healthcare practitioners. Five reasons why banks reject loans to quality small-business owners and what you can do about it.

Science.gov (United States)

Warrick, Cheree

2014-01-01

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.

The Dynamics in Requested and Granted Loan Terms when Bank and Borrower Interact Repeatedly

NARCIS (Netherlands)

Kirschenmann, K.

2010-01-01

This paper studies how credit constraints develop over bank relationships. I analyze a unique dataset of matched loan application and loan contract information and measure credit constraints as the ratio of requested to granted loan amounts. I find that the most important determinants of receiving

LOANS AND THE DEPOSITS EVOLUTION AND STRUCTURE OF THE ECONOMIC AGENTS IN THE ARGES COUNTY, DURING JULY 2011 - JULY 2012

Directory of Open Access Journals (Sweden)

Năftănăilă Cristina Alina

2013-04-01

Full Text Available Crediting is one of the main activities of the commercial banks, the loans holding the largest share in all the assets of the banks, representing an important source of income, as the operating income. Increased competition among the banks and between banks and other entities which began to lend or provide funding, determined the important changes in the credit policy promoted by banks and in the structure of the credit portfolio. Through this article we want to present the theoretical aspects on crediting the economic agents, analyzing the factors contributing for taking the local banks decision to change or maintain the credit standards and we also conducted a study that reveals the structure of deposits and loans given to the economic agents, in the Arges county, from August 2011 - August 2012, aimed the modest economic dynamics propagated further increasing of the bad loans and in despite of a difficult external environment, marked by the sovereign debt crisis.

25 CFR 170.303 - Can a tribe apply for loans or credit from a State infrastructure bank?

Science.gov (United States)

2010-04-01

... § 170.303 Can a tribe apply for loans or credit from a State infrastructure bank? Yes. Upon the request... facilitate obtaining loans and other forms of credit for an IRR project. A state infrastructure bank is a... 25 Indians 1 2010-04-01 2010-04-01 false Can a tribe apply for loans or credit from a State...

Loss given default determinants in a commercial bank lending: an emerging market case study

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Jure Poljšak

2010-06-01

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.

Risk Factors of Loan Default Payment in Ghana: A case study of Akuapem Rural Bank

OpenAIRE

Samuel Antwi; Ebenezer Fiifi Emire Atta Mills; Gifty Atta Mills; Xicang Zhao

2012-01-01

This study seeks to determine some risk factors that influence loan default repayment among customers in Akuapem rural bank. Secondary data on some variables which influence customer loan default was obtained from the credit department of Akuapem rural bank. Data was collected for the period 2006 to 2010. A logistic regression model was fitted to the data. It was found that among the variables that were used, Security and Type of Loan were significant to the study whereas Sex, Marital Status,...

75 FR 68534 - Federal Home Loan Bank Liabilities

Science.gov (United States)

2010-11-08

... 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...

Bank loan loss provisions research: A review

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Peterson K. Ozili

2017-09-01

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.

Using non-performing loan ratios as default rates in the estimation of credit losses and macroeconomic credit risk stress testing: A case from Turkey

Directory of Open Access Journals (Sweden)

Guray Kucukkocaoglu

2016-02-01

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

FINANCIAL RISK IN CREDITS TO THE CONSUMPTION OF THE VENEZUELAN BANKING SYSTEM 2008-2015

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Carlos Manuel Díaz

2017-07-01

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.

SUBSEQUENTLY AQCUIRED ASSETS AS FIDUCIARY SECURITY ON BANK LOANS

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Trisadini Prasastinah Usanti

2016-05-01

Full Text Available Collateral in terms of subsequently acquired assets namely subsequently acquired credit might be charged with fiduciary security. This collateral is not considered ideal regarding the high risk a bank must take. To minimize the risks, the bank analyzes the credit thoroughly, impose fiduciary security officials perfectly and performs monitoring of credits regularly to avoid misconduct committed by the debtor. If a default occurs, the bank will take over the assets. Nevertheless, the problems of execution on the subsequently acquired credits might arise due to debtor’s default and bad debts to the third party. Consequently, subsequently acquired assets as collateral provides as additional collateral. Keywords: bank, subsequently acquired objects, fiduciary, security, loans.

76 FR 49477 - Termination of Federal Home Loan Bank Resolution Funding Corporation Obligation

Science.gov (United States)

2011-08-10

... FEDERAL HOUSING FINANCE AGENCY [No. 2011-N-08] Termination of Federal Home Loan Bank Resolution... Banks (Banks) have satisfied their statutory obligation to contribute a percentage of their annual net earnings toward the interest payments due on bonds issued by the Resolution Funding Corporation (RefCorp...

12 CFR 347.108 - Portfolio investments.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 4 2010-01-01 2010-01-01 false Portfolio investments. 347.108 Section 347.108... INTERNATIONAL BANKING § 347.108 Portfolio investments. (a) Portfolio investments. If a bank, directly or indirectly, acquires or holds an equity interest in a foreign organization as a portfolio investment and the...

75 FR 23152 - Board of Directors of Federal Home Loan Bank System Office of Finance

Science.gov (United States)

2010-05-03

...Governed by the Federal Housing Finance Agency's (FHFA) regulations, the Federal Home Loan Bank System's (Bank System) Office of Finance issues debt (``consolidated obligations'') as agent for the Federal Home Loan Banks (Banks) on which the Banks are jointly and severally liable and publishes combined financial reports on the Banks so that members of the Bank System, investors in the consolidated obligations, and other interested parties can assess the strength of the Bank System that stands behind them. The Office of Finance (OF) is governed by a board of directors, the composition and functions of which are determined by FHFA's regulations. FHFA's experience with the Bank System and with the OF's combined financial reports during the recent period of market stress suggests that the OF and the Bank System could benefit from a reconstituted board and strengthened audit committee. This regulation is intended to achieve that end.

FAKTOR-FAKTOR YANG MEMPENGARUHI LOAN TO DEPOSIT RATIO (LDR BANK UMUM DI INDONESIA

Directory of Open Access Journals (Sweden)

Martha Novalina Ambaroita

2017-06-01

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

Ohio Department of Transportation State Infrastructure Bank Annual Financial Report : Federal Fiscal Year 2009

Science.gov (United States)

2009-01-01

The Ohio Department of Transportation is pleased to present the Federal : Fiscal Year (FFY) 2009 State Infrastructure Bank (SIB) Annual Financial : Report. : The portfolio of the FFY 2009 SIB had a total of nine loans totaling $9.0 : million and one ...

Collateral Determinats In Bank Risk Mananagement: The Regional Case

Directory of Open Access Journals (Sweden)

A. M. Karminsky

2018-01-01

Full Text Available Regional banks are struggling with significant obstacles in the modern Russian economy. Among them are strong competition with major big banks, strong resource restrictions, tightening the Bank of Russia’s requirements, and quite rapid expansion of financial technologies. Thus, the reduction of regional banks occurs, that produces both a negative impact on the development of small and medium enterprises (SMEs and challenges for balanced competition on the Russian market. Basically, these banks provide the settlement of region’s social and economic problems while maintaining local companies and enterprises. Collateral, as a source for losses covering, became the essential element of credit risk management in banks. Providing lenders to implement such instruments, it helps to reduce bank losses under borrower’s default. The purpose of the article relates to revealing of collateral determinants with higher impact on bank risk with the application of empirical methods (including regional level. This study is based on linear regression models evaluated by the least square method. Private data of secured small and medium business loans is used. This article presents LTV (loan-to-value as a major collateral determinant. The empirical evidence of interlinkage between collateral requirements, by the means of LTV, and risk premium is provided for loan portfolio of Russian regional banks. The hypothesis that LTV conversely correlates with risk premium is statistically proved.

Use of Modern Methods of Credit Portfolio Risk Management in Commercial Banks of Russian Federation

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Dmitrii S. Melnyk

2013-01-01

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.

The supervisor's portfolio: the market price risk of German banks from 2001 to 2003 - Analysis and models for risk aggregation

OpenAIRE

Memmel, Christoph; Wehn, Carsten

2005-01-01

The Value at Risk of a portfolio differs from the sum of the Values at Risk of the portfolio's components. In this paper, we analyze the problem of how a single economic risk figure for the Value at Risk of a hypothetical portfolio composed of different commercial banks might be obtained for a supervisor. Using the daily profits and losses and the daily Value at Risk figures of twelve German banks for the period from 2001 to 2003, we estimate the Value at Risk of the entire portfolio. We assu...

Selecting the best bank that offered Islamic personal loan package by using consistent fuzzy preference relations (CFPR)

Science.gov (United States)

Kadir, Norhidayah A.; Sarudin, Ezzah Suraya; Hamid, Fairus; Shamsuddin, Nor Diyana Ahmad

2014-10-01

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.

Classification of non-performing loans portfolio using Multilayer Perceptron artificial neural networks

Directory of Open Access Journals (Sweden)

Flávio Clésio Silva de Souza

2014-06-01

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.

Ohio Department of Transportation State Infrastructure Bank Annual Financial Report : Federal Fiscal Year 2004

Science.gov (United States)

2004-01-01

The Ohio Department of Transportation is pleased to present the Federal Fiscal : Year 2004 State Infrastructure Bank (SIB) Annual Financial Report. The portfolio of : the FFY 04 SIB had a total of nineteen loans in the amount of $47,340,891. : A comp...

Ohio Department of Transportation State Infrastructure Bank Annual Financial Report : Federal Fiscal Year 2008

Science.gov (United States)

2008-01-01

The Ohio Department of Transportation is pleased to present the Federal Fiscal Year (FFY) 2008 State Infrastructure Bank (SIB) Annual Financial Report. The portfolio of the FFY 2008 SIB had a total of five loans totaling $22.1 million. Since the begi...

Ohio Department of Transportation State Infrastructure Bank Annual Financial Report : Federal Fiscal Year 2007

Science.gov (United States)

2007-01-01

The Ohio Department of Transportation is pleased to present the Federal : Fiscal Year (FFY) 2007 State Infrastructure Bank (SIB) Annual Financial : Report. : The portfolio of the FFY 2007 SIB had a total of 13 loans and 1 bond in the : amount of $17....

Directions of coordination of financial accounting standards with principles for credit risk management in banks

OpenAIRE

Voloshyn, Ihor

2014-01-01

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.

CERN debt to the Pension Fund (Bank loan)

CERN Document Server

2006-01-01

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.

Currency Denomination of Bank Loans : Evidence from Small Firms in Transition Countries

NARCIS (Netherlands)

Brown, M.; Ongena, S.; Yesin, P.

2008-01-01

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

An Asset Protection Scheme for Banks Exposed to Troubled Loan Portfolios

DEFF Research Database (Denmark)

Grosen, Anders; Jessen, Pernille; Kokholm, Thomas Sander

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......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...

An Asset Protection Scheme for Banks Exposed to Troubled Loan Portfolios

DEFF Research Database (Denmark)

Kokholm, Thomas

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......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...

UNFAIR TERMS.CAUSES FOR INBALANCES IN BANK LOAN CONTRACTS

Directory of Open Access Journals (Sweden)

Mariana Rodica ȚÎRLEA

2014-11-01

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.

ANALISIS PENGARUH CAPITAL ADEQUACY RATIO (CAR) DAN NON PERFORMING LOAN (NPL) TERHADAP LOAN TO DEPOSIT RATIO (LDR) PADA BANK BUMN PERSERO DI INDONESIA

OpenAIRE

TANGKO, IRENE LASTRY FARDANI

2012-01-01

Non Performing Loan (NPL)Analisis Pengaruh Capital Adequacy Ratio (CAR) dan Non Performing Loan (NPL) Terhadap Loan to Deposit Ratio (LDR) Pada Bank BUMN Persero Di Indonesia Analysis ofEffect ofCapitalAdequacy Ratio (CAR) and theNon-PerformingLoan(NPL) AgainstLoanto DepositRatio (LDR) Thestate-owned bankinIndonesiaPersero Irene Lastry Fardani Tangko Otto R. Payangan Maat pono Penelitian ini bertujuan untuk menganalisis pengaruh Capital Adequacy Ratio (CAR) dan Non Performin...

Credit supply and monetary policy : Identifying the bank balance-sheet channel with loan applications

NARCIS (Netherlands)

Jimenez Porras, G.; Ongena, S.; Peydro, J.L.; Saurina, J.

2012-01-01

We analyze the impact of monetary policy on the supply of bank credit. Monetary policy affects both loan supply and demand, thus making identification a steep challenge. We therefore analyze a novel, supervisory dataset with loan applications from Spain. Accounting for time-varying firm

77 FR 53887 - Change in Bank Control Notices; Acquisitions of Shares of a Savings and Loan Holding Company

Science.gov (United States)

2012-09-04

... Bancorp, Inc., and thereby indirectly acquire control of Midwest Federal Savings and Loan Association of... FEDERAL RESERVE SYSTEM Change in Bank Control Notices; Acquisitions of Shares of a Savings and Loan Holding Company The notificants listed below have applied under the Change in Bank Control Act (12...

MEASURING MODEL FOR BAD LOANS IN BANKS. THE DEFAULT PROBABILITY MODEL.

Directory of Open Access Journals (Sweden)

SOCOL ADELA

2010-12-01

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.

12 CFR 1252.1 - Enterprise portfolio holding criteria.

Science.gov (United States)

2010-01-01

... 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...

THE BANKING UNION – THE SOLUTION TO REDUCE THE EUROPEAN BANKING SYSTEM RISKS?

Directory of Open Access Journals (Sweden)

ALINA LIGIA DUMITRESCU

2014-11-01

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"

The Provision of Services, Interest Margins and Loan Pricing in European Banking

OpenAIRE

Lepetit , Laetitia; Nys , Emmanuelle; Rous , Philippe; Tarazi , Amine

2006-01-01

This paper assesses the implications on bank interest margins of the expansion into non- traditional fee-based activities in European banking. We use a sample of 602 European commercial and cooperative banks from 1996 to 2002 and consider the total income shares of trading income and commission and fee income as measures of product diversification to explore loan pricing. Our results show that a higher income share from commission and fee activities is associated with lower margins and lower ...

Do bank loans and local amenities explain Chinese urban house prices?

OpenAIRE

Huang, Daisy J.; Leung, Charles Ka Yui; Qu, Baozhi

2015-01-01

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 ...

The Impact of the Basel Accord on Greek Banks: A Stress Test Study

Directory of Open Access Journals (Sweden)

John Leventides

2015-03-01

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.

The legality of unilateral increase of interest rate in banking loan contracts under Serbian law

Directory of Open Access Journals (Sweden)

Dudaš Atila I.

2016-01-01

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

75 FR 60347 - Information Sharing Among Federal Home Loan Banks

Science.gov (United States)

2010-09-30

... 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...

Retrenched Journals: Further on the World Bank Loan in Nigeria.

Science.gov (United States)

Olorunsola, R.

1995-01-01

Reviews collection development difficulties encountered at Nigeria's University of Ilorin as a result of the inflation of serial subscription prices and the poor state of the Nigerian economy in the 1980s. Describes the library's successful use of the World Bank loan of 1990-1993 to fund journal renewals and purchases. (JMV)

78 FR 73415 - Information To Be Distributed to the Federal Home Loan Banks and the Office of Finance

Science.gov (United States)

2013-12-06

...Section 20A of the Federal Home Loan Bank Act (Bank Act), requires the Director of the Federal Housing Finance Agency (FHFA) to make available to the Federal Home Loan Banks (Banks) such reports, records, or other information as may be available, relating to the condition of any Bank in order to enable each Bank to evaluate the financial condition of one or more of the other Banks individually and the Bank System as a whole. FHFA has adopted, and published in this issue of the Federal Register, a regulation to implement the statutory information sharing provisions, which will be located at 12 CFR part 1260. As required by Sec. 1260.2(b) of that regulation, FHFA is providing this notification to the Banks and the Bank System's Office of Finance of the categories of information that it will distribute under part 1260 beginning on the effective date noted below.

How Law and Institutions Shape Financial Contracts: The Case of Bank Loans

OpenAIRE

Jun Qian; Philip E. Strahan

2005-01-01

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...

Bridging the gap: The design of bank loan contracts and distance

NARCIS (Netherlands)

Hollander, Stephan; Verriest, A.J.M.

How do the distance constraints faced by lenders in acquiring borrower information affect the design of bank loan contracts? Theoretical studies posit that greater information asymmetry leads to the allocation of stronger ex ante decision rights to the lender (the uninformed party). Consistent with

Rational inefficiency and non-performing loans in Chinese banking: A non-parametric bootstrapping approach

OpenAIRE

Matthews, Kent; Guo, Jianguang; Zhang, Nina

2007-01-01

The existing Chinese banking system was born out of a state-planning framework focussed on the funding of state-owned enterprises. Despite the development of a modern banking system, numerous studies of Chinese banking point to its high level of average inefficiency. Much of this inefficiency relates to the high level of non-performing loans held on the banks books. This study argues that a significant component of inefficiency relates to a defunct bureaucratic incentive structure. Using boot...

Sewing machines and bank loans, farming and family planning.

Science.gov (United States)

Sai, F A; Nsarkoh, J D

1980-03-01

Half of a $10,000 grant was given by the International Planned Parenthood Federation (IPPF) to finance the rural development project activities of Danfa, a village of about 835 people in Ghana. In this community the women are hard working but doubly disadvantaged. Along with a high illiteracy rate, the women are limited by inadequate income due to underemployment, under productivity, unfavorable farming conditions, and a lack of resources. Large families, frequent pregnancies, poor mother and child health, and high infant mortality all make matters worse for both the rural farm wife and her family. The project began with a nucleus of women that soon grew to between 24-30. Members soon formed small groups according to their occupational interests. The women grasped the self-help idea immediately. Once or twice a month there were demonstrations and the group worked together in such activities as making soap and pomade, preparing meals, and sewing. Meetings generally ended with a general group brainstorming and then members gathered in smaller groups to review their activities and plan for the future. During the 1st year of the project the men in the group rarely attended meetings. The group gave priority attention to their community's urgent need for working capital. 15 women farmers who met the criteria determined by the group received loans in the 1st round; only 8 satisfied the criteria in the 2nd round. At the beginning of the small loans scheme, the group decided to seek bigger loans from the bank if members proved credit worthy. This requirement was satisfied, and the group began negotiations for a loan with the Agricultural Development Bank. The group received the total group loan. The Ghana Home Science Association considers the project to be successful in several respects. Team spirit has developed the group, and the women play important and respected roles. Family planning problems are regularly presented for discussion, but it is difficult to correlate

A Simple Early Warning System for Evaluating the Credit Portfolio's Quality

Directory of Open Access Journals (Sweden)

Nicolae Dardac

2009-05-01

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.

What Drives Bank Lending in Domestic and Foreign Currency Loans in a Small Open Transition Economy with Fixed Exchange Rate? The Case of Macedonia

OpenAIRE

Jane Bogoev

2011-01-01

This paper investigates two different bank loan supply functions and their determinants according to the currency of bank loans in the Republic of Macedonia. There is robust statistical evidence in favour of the existence of a bank lending channel through foreign currency loans and the foreign reference interest rate. This suggests that the impact of domestic monetary policy over the bank lending channel is limited. The most significant bank-specific characteristic for the foreign currency lo...

THE EFFECT OF NON-PERFORMING LOAN, CAPITAL ADEQUACY RATIO, LOAN TO DEPOSIT RATIO AND OPERATING EXPENSES TO OPERATING INCOME ON DEPOSIT PORTFOLIO OF NATIONAL SOCIAL SECURITY ON EMPLOYMENT (BPJS KETENAGAKERJAAN FOR PERIOD OF 2015-2017

Directory of Open Access Journals (Sweden)

Lubis M.

2018-04-01

Full Text Available The objective of this research is to examine and analyze the impact of non-performing loan, capital adequacy ratio, loan to deposit ratio and operating expenses to operating income to the portfolio of deposit of BPJS Ketenagakerjaan. Sampling was conducted with a census sampling method during 2015-2017. The results show that capital adequacy ratio have positive significant influence on deposit of BPJS Ketenagakerjaan.

PENGARUH INFLASI, KURS DAN TINGKAT SUKU BUNGA TERHADAP NON PERFORMING LOAN PADA PT. BANK TABUNGAN NEGARA (PERSERO Tbk CABANG PADANG

Directory of Open Access Journals (Sweden)

Muthia Roza Linda

2015-11-01

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 ,

7 CFR 1610.4 - Loan applications.

Science.gov (United States)

2010-01-01

... Regulations of the Department of Agriculture (Continued) RURAL TELEPHONE BANK, DEPARTMENT OF AGRICULTURE LOAN POLICIES § 1610.4 Loan applications. No application for a loan will be considered for approval by the Bank... of the applicant for a Bank loan and the amount thereof. Loan application forms are available from...

From Payday Loans To Pawnshops: Fringe Banking, The Unbanked, And Health.

Science.gov (United States)

Eisenberg-Guyot, Jerzy; Firth, Caislin; Klawitter, Marieka; Hajat, Anjum

2018-03-01

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.

Uranium loans

International Nuclear Information System (INIS)

Anon.

1990-01-01

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

Should cryptocurrencies be included in the portfolio of international reserves held by central banks?

Directory of Open Access Journals (Sweden)

Winston Moore

2016-12-01

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.

Intelligent Decision Support System for Bank Loans Risk Classification

Institute of Scientific and Technical Information of China (English)

杨保安; 马云飞; 俞莲

2001-01-01

Intelligent Decision Support System (IISS) for Bank Loans Risk Classification (BLRC), based on the way of integration Artificial Neural Network (ANN) and Expert System (ES), is proposed. According to the feature of BLRC, the key financial and non-financial factors are analyzed. Meanwhile, ES and Model Base (MB) which contain ANN are designed . The general framework,interaction and integration of the system are given. In addition, how the system realizes BLRC is elucidated in detail.

Systemic Risk-Taking at Banks: Evidence from the Pricing of Syndicated Loans

NARCIS (Netherlands)

D. Gong (Di); W.B. Wagner (Wolf)

2016-01-01

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

BASEL III IMPACT ON ROMANIAN BANKING SYSTEM PERFORMANCE

Directory of Open Access Journals (Sweden)

Mariana G. NEDELCU (BUNEA

2014-04-01

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.

Effect 0f Credit Risk Management Techniques 0n The Performance 0f Unsecured Bank Loans Employed Commercial Banks In Kenya

Directory of Open Access Journals (Sweden)

Prof. R.W Gakure

2013-07-01

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.

The Effects of Nonperforming Loans on Dynamic Network Bank Performance

Directory of Open Access Journals (Sweden)

Day-Yang Liu

2017-01-01

Full Text Available This paper is to explore the relationship between banks’ performance and their nonperforming loans (NPLs. The banks’ performance through a network production process structure with NPLs is developed. With increasing NPLs in recent years, the quality of lending assets is a key significant and influencing factor for banks’ operational risk. The research methodology is to integrate the radial and nonradial measures of efficiency into the network production process framework with NPLs; this study utilizes network epsilon-based measure model to evaluate the banking industry performance. In addition, the key characteristics of the bank industry including those of financial holding companies and privatized government banks are needed to be figured out and to provide insight into what causes imperfectly competitive conditions for some banks. The results demonstrate that the banking sector grew consistently in three aspects of operation: operating performance, profitability performance, and risk management in the last five years of the subject period. These results showed that the overall banking sector was capable of pursuing growth in both operations and profits while accounting for risk management. The potential applications and strengths of network data envelopment analysis in assessing financial organizations are also highlighted.

Bank Credit Risk Management and Rating Migration Analysis on the Business Cycle

Directory of Open Access Journals (Sweden)

Dimitris Gavalas

2014-03-01

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.

The National Educational Loan Bank: A Proposal for Improving the System of Lending for Higher Education. Working Paper, Preliminary Draft.

Science.gov (United States)

Deitch, Kenneth M.

A National Education Loan Bank (NELB) is proposed as an alternative to existing federal loan programs for education, such as the National Direct Student Loan program and the Guaranteed Student Loan program. The history and structures of these two programs are detailed: financing, costs, insurance arrangements, agencies, volume, and interest rates.…

75 FR 678 - Federal Home Loan Bank Membership for Community Development Financial Institutions

Science.gov (United States)

2010-01-05

... financial support are: (1) Federally regulated insured depository institutions and their holding companies... that provide health care, childcare, educational, cultural, or social services; and (4) community... association, savings and loan association, cooperative bank, homestead association, insurance company, savings...

Solar Stimulus: Perceptions of banks and credit unions towards solar loans in Massachusetts

Science.gov (United States)

Bahirwani, Suveer

Access to finance for residential solar photovoltaic systems (PV) is an essential element of the clean energy economy. Perceptions about solar PV and solar loans among lenders at banks and credit unions shape the availability of lending products for residential solar PV. In March 2015, interviews were carried out among select informants and subsequently, between April and May 2015, a survey was conducted to gauge the perceptions of lenders in Massachusetts. Lenders have a range of concerns with the market and the provision of solar loans. These concerns can be grouped around risk, market size or viability and policy uncertainty. In summary, lending for this segment is not a priority for banks and credit unions in Massachusetts at this time. Recommendations are offered for the lending community and policymakers to improve adoption. Questions for further research are also presented.

Engaging the banks: financing small-scale renewables in the developing world

International Nuclear Information System (INIS)

Usher, E.; Touhami, M.

2006-01-01

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

Engaging the banks: financing small-scale renewables in the developing world

Energy Technology Data Exchange (ETDEWEB)

Usher, E.; Touhami, M.

2006-05-15

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.

Hazardous Times for Monetary Policy : What do Twenty-three Million Bank Loans Say about the Effects of Monetary Policy on Credit Risk?

NARCIS (Netherlands)

Jiminez, G.; Ongena, S.; Saurina, J.

2007-01-01

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

Impact of credit information on the banks stability: Global experience and lessons for Ukraine

Directory of Open Access Journals (Sweden)

Inna Bielova

2016-05-01

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

Comparison of different methods of credit risk management of the commercial bank to accelerate lending activities for SME segment

OpenAIRE

Cipovová, Eva; Dlasková, Gabriela

2016-01-01

The contribution is dealing with selected assessments of the most important risk in the banking sector in the Czech Republic. The aim of this article was to quantify capital requirement for individual methodologies of credit risk management on the designed portfolio with corporate loans with use of collateral using collaterals as techniques to reduce credit risk of commercial bank. Firstly, the aim of this article is to quantify the capital requirements using the Internal Rating Based Approac...

The Application of VaR Method to Risk Evaluation of Bank Loans%VaR方法在银行贷款风险评估中的应用

Institute of Scientific and Technical Information of China (English)

邹新月

2005-01-01

Value-at-Risk model developed recently is a mathemetical medol to measure and monitor market risk. The article focuses on discussing calculate procedure and calculate method about applying VaR means for the bank loan risk in evaluation, we make clear differentiate both the Bank for International Settlements draw credit risk reserve and VaR means calculate bank loan risk value, find VaR means in application practicality value and extensity perspective in our bank loan risk for evaluation

Bank’s choIce of loan portfolIo under hIgh regulatIon – example of croatIa

Directory of Open Access Journals (Sweden)

Neven Vidakovic

2014-12-01

Full Text Available This paper creates a mathematical model in which the banks are faced with two optimization problems. The first optimization problem is how to optimize their behavior in order to maximize profits. The second optimization is how to optimize the structure of liabilities in order to have minimum regulation. The regulatory regime is imposed by the central bank. This paper investigates the behavior of banks when faced with high regulation and provides a theoretical framework for analysis of the impact of high regulation on the choice of the bank’s portfolio structure. The model shows the banks have a learning framework in which the banks learn the central bank’s true model and adjust their credit policies to existing regulatory regime. However this adjustment also creates changes in the choice of credit.

Lending booms, reserves, and the sustainability of short-term debt - inferences from the pricing of syndicated bank loans

OpenAIRE

Eichengreen, Barry; Mody, Ashoka

1999-01-01

Academics pay little attention to international bank lending, focusing instead on rapidly growing market segments such as the international bond market and derivative credit instruments. The authors argue for paying more attention to international bank lending. Why? Three reasons. First, the syndicated bank loan is one of the workhorses of international capital markets. Second, international bank lending is especially important for private-sector borrowers, whose participation in internationa...

Stress Testing as a Tool of Bank Risk Management

Directory of Open Access Journals (Sweden)

Antonyuk Oksana I.

2013-12-01

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.

12 CFR 561.30 - Nonresidential construction loan.

Science.gov (United States)

2010-01-01

... REGULATIONS AFFECTING ALL SAVINGS ASSOCIATIONS § 561.30 Nonresidential construction loan. The term nonresidential construction loan means a loan for construction of other than one or more dwelling units. ... 12 Banks and Banking 5 2010-01-01 2010-01-01 false Nonresidential construction loan. 561.30...

Earnings Management in the Banking Industry : The consequences of IFRS implementation on discretionary use of loan loss provisions

NARCIS (Netherlands)

R.J.J. van Oosterbosch (Renick)

2010-01-01

textabstractExecutive summary Prior research suggests that banks have an incentive to smooth income through loan loss provisions (LLPs), but there has been no research on the effects of IFRS implementation on this. Using a sample of European banks and a single-stage regression that models the

MERGERS AND ACQUISITIONS THAT STRENGTHEN THE BANKING SYSTEMS DURING THE CRISIS

Directory of Open Access Journals (Sweden)

RADULESCU MAGDALENA

2014-08-01

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.

Study on Shareholder Related Loans's Impact to the Commercial Banks Development%股东关联贷款对商业银行发展的影响研究

Institute of Scientific and Technical Information of China (English)

程筱敏

2013-01-01

股东关联贷款对商业银行发展的影响与银行贷款危机密不可分。文中分析了股东关联贷款与银行贷款危机之间的关系，着重就股东关联贷款对商业银行影响进行研究，并提出了防范和降低商业银行股东关联贷款风险的政策建议。%The shareholder loans of commercial banks related development impact of the crisis and bank loans are inseparable.This article analyzes association between the shareholder loans and the crisis of bank loan,focusing on shareholder loans of commercial banks association,and proposed to prevent and reduce the risk of commercial bank lending policies related shareholder proposals.

Systemic risk contributions: a credit portfolio approach

OpenAIRE

Düllmann, Klaus; Puzanova, Natalia

2011-01-01

We put forward a Merton-type multi-factor portfolio model for assessing banks' contributions to systemic risk. This model accounts for the major drivers of banks' systemic relevance: size, default risk and correlation of banks' assets as a proxy for interconnectedness. We measure systemic risk in terms of the portfolio expected shortfall (ES). Banks' (marginal) risk contributions are calculated based on partial derivatives of the ES in order to ensure a full risk allocation among institutions...

How loan interest rate liberalization affects firms'loan maturity structure Evidence from listed manufacturing companies in China

Institute of Scientific and Technical Information of China (English)

Jianfang Zhou; Jingjing Wang; Jianping Ding

2014-01-01

Purpose-After loan interest rate upper limit deregulation in October 2004,the financing environment in China changed dramatically,and the banks were eligible for risk compensation.The purpose of this paper is to focus on the influence of the loan interest rate librealization on firms' loan maturity structure.Design/methodology/approach-Based on Rajan's (1992) model the authors constructed a tradeoff model of how the banks choose long-term and short-term loans scales,and further analyzed banks' loan term decisions under the loan interest rate upper limit deregulation or collateral cases.Then the authors used an unbalanced panel data set of 586 Chinese listed manufacturing companies and 9,376 observations during the period 1996-2011 to testify the theoretical conclusion.Furthermore,the authors studied the effect on firms with different characteristics of ownership or scale.Findings-The results show that the loan interest rate liberalization significantly decreases the private companies' reliance on short-term loans and increases sensitivity to interest rates of stateowned companies' long-term loans.But the results also show that the companies' ownership still plays a key role on the long-term loans availability.When monetary policy tightened,small companies still have to borrow short-term loans for long-term purposes.As the bank industry is still dominated by state-owned banks and the deposit interest rate has upper limits,the effect of the loan interest rate liberalization on easing long-term credit constraints is limited.Originality/value-From a new perspective,the content and findings of this paper contribute to the study of the effect of the interest rate liberalization on China economy.

12 CFR 528.6 - Loan application register.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 5 2010-01-01 2010-01-01 false Loan application register. 528.6 Section 528.6 Banks and Banking OFFICE OF THRIFT SUPERVISION, DEPARTMENT OF THE TREASURY NONDISCRIMINATION... Mortgage Disclosure Act Loan Application Registers with the Office of Thrift Supervision in accordance with...

Determinants of loans and deposits strategies of foreign bank subsidiaries in emerging countries

Directory of Open Access Journals (Sweden)

Mehdi Mili

2013-09-01

Full Text Available Abstract. This paper focuses on the transmission of bank liquidity shocks in Loan and deposit in emerging markets. First, we attempt to identify factors affecting the credit strategy of foreign banks in emerging countries. Second, we test whether depositors exert market discipline on foreign subsidiaries. By combining financial variables of subsidiaries and their parent banks and macroeconomic variables of host and home countries, we investigate the factors that may affect the behavior of depositors. Our empirical approach is based on a Partial Least Squares-Path model that allows us to indentify the causal relationships between the various groups of variables. Our results show that foreign bank lending is determined by the specific financial variables of the parent bank and macroeconomic variables of the country of origin. This support that the strategy's credit of foreign subsidiary is centrally managed at the parent bank and credit supply of subsidiaries depends primary on the financial situation of its parent bank. Finally we find evidence of market discipline exercised over foreign subsidiaries in emerging countries. We show that market discipline is strongly affected by the specific characteristics of the subsidiary.

78 FR 63978 - Change in Bank Control Notices; Acquisitions of Shares of a Savings and Loan Holding Company

Science.gov (United States)

2013-10-25

... FEDERAL RESERVE SYSTEM Change in Bank Control Notices; Acquisitions of Shares of a Savings and Loan Holding Company The notificants listed below have applied under the Change in Bank Control Act (12 U.S.C. 1817(j)) and the Board's Regulation LL (12 CFR part 238) to acquire shares of a savings and...

78 FR 38715 - Change in Bank Control Notices; Acquisitions of Shares of a Savings and Loan Holding Company

Science.gov (United States)

2013-06-27

... FEDERAL RESERVE SYSTEM Change in Bank Control Notices; Acquisitions of Shares of a Savings and Loan Holding Company The notificants listed below have applied under the Change in Bank Control Act (12 U.S.C. 1817(j)) and the Board's Regulation LL (12 CFR part 238) to acquire shares of a savings and...

77 FR 74191 - Change in Bank Control Notices; Acquisitions of Shares of a Savings and Loan Holding Company

Science.gov (United States)

2012-12-13

... FEDERAL RESERVE SYSTEM Change in Bank Control Notices; Acquisitions of Shares of a Savings and Loan Holding Company The notificants listed below have applied under the Change in Bank Control Act (12 U.S.C. 1817(j)) and the Board's Regulation LL (12 CFR Part 238) to acquire shares of a savings and...

78 FR 62302 - Change in Bank Control Notices; Acquisitions of Shares of a Savings and Loan Holding Company

Science.gov (United States)

2013-10-15

... FEDERAL RESERVE SYSTEM Change in Bank Control Notices; Acquisitions of Shares of a Savings and Loan Holding Company The notificants listed below have applied under the Change in Bank Control Act (12 U.S.C. 1817(j)) and the Board's Regulation LL (12 CFR Part 238) to acquire shares of a savings and...

77 FR 66616 - Change in Bank Control Notices; Acquisitions of Shares of a Savings and Loan Holding Company

Science.gov (United States)

2012-11-06

... FEDERAL RESERVE SYSTEM Change in Bank Control Notices; Acquisitions of Shares of a Savings and Loan Holding Company The notificants listed below have applied under the Change in Bank Control Act (12 U.S.C. 1817(j)) and the Board's Regulation LL (12 CFR Part 238) to acquire shares of a savings and...

76 FR 75882 - Change in Bank Control Notices; Acquisitions of Shares of a Savings and Loan Holding Company

Science.gov (United States)

2011-12-05

... FEDERAL RESERVE SYSTEM Change in Bank Control Notices; Acquisitions of Shares of a Savings and Loan Holding Company The notificants listed below have applied under the Change in Bank Control Act (12 U.S.C. 1817(j)) and the Board's Regulation LL (12 CFR Part 238) to acquire shares of a savings and...

78 FR 21368 - Change in Bank Control Notices; Acquisitions of Shares of a Savings and Loan Holding Company

Science.gov (United States)

2013-04-10

... FEDERAL RESERVE SYSTEM Change in Bank Control Notices; Acquisitions of Shares of a Savings and Loan Holding Company The notificants listed below have applied under the Change in Bank Control Act (12 U.S.C. 1817(j)) and the Board's Regulation LL (12 CFR part 238) to acquire shares of a savings and...

76 FR 61102 - Change in Bank Control Notices; Acquisitions of Shares of a Savings and Loan Holding Company

Science.gov (United States)

2011-10-03

... FEDERAL RESERVE SYSTEM Change in Bank Control Notices; Acquisitions of Shares of a Savings and Loan Holding Company The notificants listed below have applied under the Change in Bank Control Act (12 U.S.C. 1817(j)) and the Board's Regulation LL (12 CFR part 238) to acquire shares of a savings and...

76 FR 72922 - Change in Bank Control Notices; Acquisitions of Shares of a Savings and Loan Holding Company

Science.gov (United States)

2011-11-28

... FEDERAL RESERVE SYSTEM Change in Bank Control Notices; Acquisitions of Shares of a Savings and Loan Holding Company The notificants listed below have applied under the Change in Bank Control Act (12 U.S.C. 1817(j)) and the Board's Regulation LL (12 CFR part 238) to acquire shares of a savings and...

77 FR 26009 - Change in Bank Control Notices; Acquisitions of Shares of a Savings and Loan Holding Company

Science.gov (United States)

2012-05-02

... FEDERAL RESERVE SYSTEM Change in Bank Control Notices; Acquisitions of Shares of a Savings and Loan Holding Company The notificants listed below have applied under the Change in Bank Control Act (12 U.S.C. 1817(j)) and the Board's Regulation LL (12 CFR part 238) to acquire shares of a savings and...

78 FR 65312 - Change in Bank Control Notices; Acquisitions of Shares of a Savings and Loan Holding Company

Science.gov (United States)

2013-10-31

... FEDERAL RESERVE SYSTEM Change in Bank Control Notices; Acquisitions of Shares of a Savings and Loan Holding Company The notificants listed below have applied under the Change in Bank Control Act (12 U.S.C. 1817(j)) and the Board's Regulation LL (12 CFR Part 238) to acquire shares of a savings and...

Syndicated Loan Signed for CPECC'S KUWAIT Project

Institute of Scientific and Technical Information of China (English)

无

1997-01-01

@@ China Petroleum Engineering Construction Corp. (CPECC) has got a syndicated loan of 80 million USD from a consortium composed of 15 banks of Japan, Germany, France, Netherlands and Belgium with Sanwa Bank Hongkong Branch as the arrangement bank. The loan will be used for building a multiple well manifold production station (MWMPS) in Kuwait. The signing ceremony for the loan agreement was held in late January 1997.

A dynamical model on deposit and loan of banking: A bifurcation analysis

Science.gov (United States)

Sumarti, Novriana; Hasmi, Abrari Noor

2015-09-01

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.

The impact of bank's franchise on loan price: With an estimation about bargaining power of China's commercial bank%银行特许权对贷款价格的影响研究:兼论我国商业银行的议价能力

Institute of Scientific and Technical Information of China (English)

魏琪; 曾胜

2017-01-01

With the deepening of the banking liberalization and market-oriented reform of interest rate controls,it would be an inevitable trend for banks and enterprises to determine the loan price by negotiation,so the role of the bargaining power in the loan pricing process will become more prominent.However,the existing literature mostly discussed the issue of loan pricing by focus on the product attribute of loan and the financial intermediary attribute of banks which ignored the properties of general merchandise of loans,so we barely knew the loan pricing mechanism form the perspective of market player's bargaining power,especially the bargaining power which came from bank's franchise and its impacts on loan price.This is neither conducive for us to understand the process of capital pricing correctly,nor comprehensive understanding the role of bank's franchise in loan pricing.This paper established a bargaining game model to analyze the formation mechanism of loan pricing with the market trend,and influences of bank's franchise on the loan prices negotiation.Based on this,this paper did an empirical study on the determinants of loan pricing by using two-tier stochastic frontier model and the data of 104 China's commercial bank from 2005 to 2013,measured commercial bank's bargaining power and its impact degree on loan prices.The study found:Firstly,franchise brought banks monopoly and operational superiority,which made banks have lower negotiation cost and stronger bargaining power,so as to get a strong position in the loan price negotiation to make the negotiation reach a higher transaction price;Secondly,beside the benchmark interest rate,loan cost,credit risk,the market structure of banking and the level of inflation were the major factors to determine the price of the loan.And the barging between the lender and borrower could lead to loan price fluctuation.Thirdly,although interest rate control limited the bargaining space of loan price,with monopoly power and

"Strategic Giving" A Qualitative Analysis Study on Pattern of Philanthropic Portfolio in CSR of Malaysia's Domestic Commercial Banks

OpenAIRE

Yong, Ting Lan

2013-01-01

Banking industry is the backbone of a country economy. Disruption on the stability of this industry may result in economic crises as evidenced by the 1997-98 Asian economic crises and the 2007 sub-prime crisis. While good corporate governance including good business ethics are crucial in maintaining this stability, the role of social responsibility is equally important. Thus, this study will focus on Philanthropic Portfolio in CSR of 8 domestic commercial banks in Malaysia; a specific focus w...

Bad Loans and Loan Write-Offs

OpenAIRE

福田, 慎一; 鯉渕, 賢

2006-01-01

In this paper, we investigate who bears the burden when writing off bad loans in Japan. Traditionally, Japanese main banks bore large burdens in saving their customers. We still find that some main banks bear a large burden in saving their customers. However, in most cases, main banks became very reluctant to bear large burdens when bailing out their customers. In the transition from the bank-based system to a market-based system, traditional implicit rules are collapsing dramatically. We sug...

The Bank Lending Channel: Evidence from Australia

Directory of Open Access Journals (Sweden)

Luke Liu

2014-06-01

Full Text Available This study explores how monetary policy changes flow through the banking sector in Australia. Drawing on data between 2004 and 2010, we divide banks into three groups according to their size, and examine the impact of that cash rate change on lending of different types of loans. We find the response of bank lending after a monetary policy change varies with the size of the bank as well as the types of loan. Smaller banks are more sensitive to policy rate changes, and household loans, government loans and intra-group loans are less responsive to monetary policy compared with financial and non-financial loans.

IMPROVING DEPOSIT POLICY BANK ON THE BASIS OF ANALYSIS OF THE INFLUENCE OF DEPOSIT PORTFOLIO STRUCTURE ON FORMATION OF INVESTMENT RESOURCE

Directory of Open Access Journals (Sweden)

Viadrova I.

2018-01-01

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

The determinants of loan contracts to business firms

OpenAIRE

Pham, Thi Thu Trà; Lensink, Robert

2006-01-01

This paper deals with loan contracting from a private bank in Vietnam. We focus on the main loan contract features that the bank uses in lending to business firms, namely loan maturity, collateral and loan interest rate. Based upon the simultaneous equation model of Dennis et al. (2000) and the bank’s loan contracting policies, we examine the possible interdependency of the three different loan contract terms. Also, we try to determine which firm characteristics and exogenous factors are rele...

12 CFR 583.12 - Multiple savings and loan holding company.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 5 2010-01-01 2010-01-01 false Multiple savings and loan holding company. 583... DEFINITIONS FOR REGULATIONS AFFECTING SAVINGS AND LOAN HOLDING COMPANIES § 583.12 Multiple savings and loan holding company. The term multiple savings and loan holding company means any savings and loan holding...

12 CFR 583.11 - Diversified savings and loan holding company.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 5 2010-01-01 2010-01-01 false Diversified savings and loan holding company... DEFINITIONS FOR REGULATIONS AFFECTING SAVINGS AND LOAN HOLDING COMPANIES § 583.11 Diversified savings and loan holding company. The term diversified savings and loan holding company means any savings and loan holding...

12 CFR 583.20 - Savings and loan holding company.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 5 2010-01-01 2010-01-01 false Savings and loan holding company. 583.20... REGULATIONS AFFECTING SAVINGS AND LOAN HOLDING COMPANIES § 583.20 Savings and loan holding company. The term savings and loan holding company means any company that directly or indirectly controls a savings...

Interest Free Banking in Nigeria - Welcome Islamic Banking ...

African Journals Online (AJOL)

Interest Free Banking in Nigeria - Welcome Islamic Banking; Welcome Christian Banking. ... banks pay interest on deposits, and charge interest on loans and advances, ... However, the literature on interest rates, in relation to Commercial Bank ...

Formation of strategy and policy of banking credit operations management

Directory of Open Access Journals (Sweden)

O.V. Lysenok

2016-03-01

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.

Neuro-Based Artificial Intelligence Model for Loan Decisions

OpenAIRE

Shorouq F. Eletter; Saad G. Yaseen; Ghaleb A. Elrefae

2010-01-01

Problem statement: Despite the increase in consumer loans defaults and competition in the banking market, most of the Jordanian commercial banks are reluctant to use artificial intelligence software systems for supporting loan decisions. Approach: This study developed a proposed model that identifies artificial neural network as an enabling tool for evaluating credit applications to support loan decisions in the Jordanian Commercial banks. A multi-layer feed-forward neural network with backpr...

Collection management to reduce the uncorrect credit portfolio granted by the National Development Bank, Ecuador

Directory of Open Access Journals (Sweden)

Frank A. Lemoine-Quintero

2018-01-01

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.

76 FR 79548 - Loan Participations; Purchase, Sale and Pledge of Eligible Obligations; Purchase of Assets and...

Science.gov (United States)

2011-12-22

..., a FICU purchasing a loan participation pool might perform statistical sampling in evaluating the..., since 2007, FISCUs- overall experienced a higher delinquency rate in their loan participation portfolios. At year-end 2010, the delinquency rate for the FISCU-participated portfolio was 4.11 percent...

The effect of organizational hierarchy on loan rates and risk assessments

NARCIS (Netherlands)

Bouwens, J.; Kroos, P.

2012-01-01

We examine whether loan decisions are affected by the internal decision structure of the bank. Banks typically grant decision rights on straight-forward loans entirely to individual loan officers. For more risky loans these officers have to seek ratification for their loan proposals at higher

12 CFR Appendix IV to Part 27 - Home Loan Data Submission

Science.gov (United States)

2010-01-01

... 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...

Loan Defaults in Africa

OpenAIRE

Svetlana Andrianova; Badi H Baltagi; Panicos O Demetriades

2011-01-01

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 ...

Vector optimization technique in the problems of interaction between an enterprise and its counteragents

Directory of Open Access Journals (Sweden)

Oleg Igorevich Nikonov

2011-09-01

Full Text Available This paper reviews vector optimization goals related to the selection of efficient portfolios of a company's counterparties. In the first part of the research, the costs to minimize of providing goods and risk of late delivery have been selected as the optimization criteria. It is assumed that the risks are random in nature and are characterized by a random amount of damage being made to the firm due to late delivery of products. It is assumed that the amount of damage is proportional to the quantity of goods ordered. The second section is devoted to the optimization of working with bank clients through the formation of an effective portfolio of banking products. The following resources of the bank are considered as risky assets: placed interbank loans, securities (bonds, stocks, bonds, corporate loans, loans to small and medium-sized businesses, factoring and loans to individuals. Methodologically, the approach developed here is adjacent to the theory of portfolio investment, which goes back to a paper by G. Markowitz, however, this approach is applied for objects other than capital market instruments.

Does a loan to a bank qualify as a ’deposit’?

DEFF Research Database (Denmark)

Werlauff, Erik

2011-01-01

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...... 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......The article deals with the definition of ’deposit’ in Directive 94/19/EC, the Deposit Guarantee Directive, as amended by Directive 2009/14/EC. It is closer examined in the article to what extent a loan to a bank qualifis as a ’deposit’ in connection with the directive. The article concludes...

12 CFR Appendix I to Part 27 - Monthly Home Loan Activity Format

Science.gov (United States)

2010-01-01

... 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...

PENGARUH NON PERFORMING LOAN (NPL TERHADAP PROFITABILITAS

Directory of Open Access Journals (Sweden)

Silviana Agustami

2017-04-01

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.

NPD project portfolio selection using reinvestment strategy in competitive environment

Directory of Open Access Journals (Sweden)

Alireza Ghassemi

2018-01-01

Full Text Available This study aims to design a new model for selecting most fitting new product development projects in a pool of projects. To catch the best model, we assume new products will be introduced to the competitive markets. Also, we suppose the revenue yielded by completed projects can be reinvested on implementation of other projects. Other sources of financing are borrowing loans from banks and initial capital of the firm. These limited resources determine most evaluated projects to be performed. Several types of interactions among different projects are considered to make the chosen projects more like a portfolio. In addition, some numerical examples from the real world are provided to demonstrate the applicability of the proposed model. These examples show how the particular considerations in the suggested model affect the results.

Monetary policy, bank size and bank lending: evidence from Australia(new version)

OpenAIRE

liu, luke

2012-01-01

This study explores how monetary policy changes flow through the banking sector in Australia. Drawing on data between 2004 and 2010, we divide banks into three groups according to their size, and examine the impact of cash rate change on lending of different types of loans. We found the response of bank lending after a monetary policy change varies with the size of the bank as well as the types of loan.

Economic policy uncertainty, credit risks and banks lending decisions: Evidence from Chinese commercial banks

Institute of Scientific and Technical Information of China (English)

Qinwei Chi; Wenjing Li

2017-01-01

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.

Analysis on Sustainable Development Management Model of Village Banks - Based on Bayan Rongxing Village Bank in Heilongjiang Province

Institute of Scientific and Technical Information of China (English)

Wang shuang; Wang Ji-heng; Liu Bing; Yu Xiao-wen

2015-01-01

This paper summarized the management models of village banks in China. We compared and analyzed different management models of four village banks in different regions on four aspects: regional agriculture feature, loan for farmers, loan for enterprises and the construction of network, then came to the conclusion that, if the village banks' health development can realize, they must pay attention to innovating in loan patterns as well as material loan and starting out the network development.

A New Measure of Competition in Indian Loan Market

Directory of Open Access Journals (Sweden)

Jugnu Ansari

2013-11-01

Full Text Available This study endeavours at measuring bank competition in Indian loan market using a new competitiveness index, the Augmented Relative Profit Difference (ARPD, which quantifies the impact of marginal costs on performance, measured in terms of market shares. This study yields two major insights. First, the theoretical foundation of the ARPD is very robust as compared to other conventional measures. Second, applying this unbiased competition indicator to Indian bank loan markets shows that financial reform indeed has contributed to significant improvements in competition. As regards, the competition among specific types of banks, we found public sector banks and private sector banks are comparatively more competitive than foreign banks. The empirical finding indicates that the Indian loan market is monopolistic in nature.

Perbandingan NPL, LDR, CAR, ROA, dan BOPO Antara Bank BNI Dan Bank BUMN Lain

Directory of Open Access Journals (Sweden)

Tri Wahyuningsih

2016-09-01

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.

31 CFR 25.400 - Loan provisions.

Science.gov (United States)

2010-07-01

... SALES LOANS MADE BY THE DEFENSE SECURITY ASSISTANCE AGENCY AND FOREIGN MILITARY SALES LOANS MADE BY THE FEDERAL FINANCING BANK AND GUARANTEED BY THE DEFENSE SECURITY ASSISTANCE AGENCY Form of Private Loan § 25... 31 Money and Finance: Treasury 1 2010-07-01 2010-07-01 false Loan provisions. 25.400 Section 25...

BANKING BUSINESS MODELS IN UKRAINIAN BANKING SYSTEM

Directory of Open Access Journals (Sweden)

Yuliya Onyshchenko

2015-11-01

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

12 CFR 211.45 - Accounting for fees on international loans.

Science.gov (United States)

2010-01-01

... accordance with generally accepted accounting principles. [Reg. K, 68 FR 1159, Jan. 9, 2003] Interpretations ... 12 Banks and Banking 2 2010-01-01 2010-01-01 false Accounting for fees on international loans. 211... Accounting for fees on international loans. (a) Restrictions on fees for restructured international loans. No...

12 CFR 221.103 - Loans to brokers or dealers.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 3 2010-01-01 2010-01-01 false Loans to brokers or dealers. 221.103 Section... SYSTEM CREDIT BY BANKS AND PERSONS OTHER THAN BROKERS OR DEALERS FOR THE PURPOSE OF PURCHASING OR CARRYING MARGIN STOCK (REGULATION U) Interpretations § 221.103 Loans to brokers or dealers. Questions have...

FINANCIAL STABILITY OF ISLAMIC AND CONVENTIONAL BANKS IN BANGLADESH: REVISITING STABILITY MEASURES AND ANALYZING STABILITY BEHAVIOR

Directory of Open Access Journals (Sweden)

Md Enayet Hossain

2018-03-01

Full Text Available This study intends to assess the relative financial stability of Islamic banks in Bangladesh using three different Z-Scores as financial stability measures, based on a sample of 29 listed commercial banks (23 conventional and 6 Islamic in Bangladesh over the period 2005-2016. Apart from the existing measure of financial stability, Z-Score, the paper contributes to the literature by developing an alternative Z-Score based on bank’s loan portfolio infection ratio. We first use pair-wise comparison and find that Islamic banks are financially more stable in two stability measures i.e. Z-Score (based on Capital Adequacy Ratio and Z-Score (based on Infection Ratio. We then perform static (random effects and dynamic (GMM panel data analysis. By controlling for bank-specific, industry-specific and macroeconomic variables in the regressions, we find that Islamic banks are financially more stable in 2 panel regressions of Z-Score (based on Infection Ratio. We also find that the presence of Islamic banks increases the stability of all banks in the system including their conventional peers.

Essays on banking and asset pricing

NARCIS (Netherlands)

Roscovan, V.

2008-01-01

This dissertation contains three studies on banking and asset pricing. It analyzes questions related to informational content of bank loan announcements and trading activity. The first two chapters examine theoretically and empirically how stock and bond holders react to bank loan announcements as a

Evaluation Of Loan Disbursement And Repayment Of Supervised ...

African Journals Online (AJOL)

Evaluation Of Loan Disbursement And Repayment Of Supervised Credit ... bank as regard to loan supervision was scored low as a result of low rate of loan recovery, ... strategy to recover outstanding debts and reduce interest charge on loans.

12 CFR 591.3 - Loans originated by Federal savings associations.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 5 2010-01-01 2010-01-01 false Loans originated by Federal savings... PREEMPTION OF STATE DUE-ON-SALE LAWS § 591.3 Loans originated by Federal savings associations. (a) With regard to any real property loan originated or to be originated by a Federal savings association, as a...

Relevansi Nilai Selisih Loans Book Value dan Loans Fair Value, Book Value Per Share, Earnings Per Share dan Ukuran Perusahaan

Directory of Open Access Journals (Sweden)

Dina Bakti Pertiwi

2015-01-01

Full Text Available One of the impacts of IFRS convergence is the tendency to leave historical cost to the fair value primarily for financial instruments, one of which is bank loans. Therefore, the benefit of the use of historical cost and fair value needs to be examined. This study aims to evaluate the relationship of the difference between loan book value and fair value, book value per share, earnings per share and the company size to the stock price of banks that use accounting standard that has been converged to IFRS. The samples used are banks listed in Indonesia Stock Exchange during the period of 2010-2013. The relationship between the difference loans book value and fair value, book value per share, earnings per share and the size with the stock price were analyzed using multiple linear regression. The results of this study indicate that the difference between loans book value and fair value, book value per share, earnings per share and the size can be used to predict the stock price of bank. Thus, the difference between loan book value and fair value of financial instruments have a relevant value.

12 CFR 584.4 - Certain acquisitions by savings and loan holding companies.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 5 2010-01-01 2010-01-01 false Certain acquisitions by savings and loan... TREASURY SAVINGS AND LOAN HOLDING COMPANIES § 584.4 Certain acquisitions by savings and loan holding companies. (a) Acquisitions by a savings and loan holding company of more than five percent of a non...

12 CFR 614.4354 - Federal land bank associations.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 6 2010-01-01 2010-01-01 false Federal land bank associations. 614.4354 Section 614.4354 Banks and Banking FARM CREDIT ADMINISTRATION FARM CREDIT SYSTEM LOAN POLICIES AND... association may assume endorsement liability on any loan if the total amount of the association's endorsement...

Influence of credit scoring on the dynamics of Markov chain

Science.gov (United States)

Galina, Timofeeva

2015-11-01

Markov processes are widely used to model the dynamics of a credit portfolio and forecast the portfolio risk and profitability. In the Markov chain model the loan portfolio is divided into several groups with different quality, which determined by presence of indebtedness and its terms. It is proposed that dynamics of portfolio shares is described by a multistage controlled system. The article outlines mathematical formalization of controls which reflect the actions of the bank's management in order to improve the loan portfolio quality. The most important control is the organization of approval procedure of loan applications. The credit scoring is studied as a control affecting to the dynamic system. Different formalizations of "good" and "bad" consumers are proposed in connection with the Markov chain model.

A Basic Library for Savings and Loan Associations: A Bibliography.

Science.gov (United States)

Westfall, Elizabeth W.; Zimmerman, Anne R.

Recognizing that current and reliable sources of information are necessary for effective management and decision making, librarians of the Federal Home Loan Bank of San Francisco and the Federal Home Loan Bank in Seattle prepared this booklet listing what they feel are the basic books and periodicals essential to a savings and loan library…

Analysis of Default Risk of Agricultural Loan by Some Selected ...

African Journals Online (AJOL)

... 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.

Evaluating competition in the loan and deposit market using the ...

African Journals Online (AJOL)

Competition was more intense in the market for loans than in the deposit market. There was more competition among domestic banks than among foreign banks. The study also reveals that there was marginal differences in the intensity of competition for loans and deposits among domestic banks. On the aggregate level, ...

Credit Default and Business Cycles: An Empirical Investigation of Brazilian Retail Loans

Directory of Open Access Journals (Sweden)

Arnildo da Silva Correa

2014-09-01

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.

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

Directory of Open Access Journals (Sweden)

Nida ABDİOĞLU

2016-03-01

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

12 CFR 614.4000 - Farm Credit Banks.

Science.gov (United States)

2010-01-01

... make, provided the borrower eligibility, membership, term, amount, loan security, and stock or... Banks and Banking FARM CREDIT ADMINISTRATION FARM CREDIT SYSTEM LOAN POLICIES AND OPERATIONS Lending... the requirements in § 614.4200 of this part, to make real estate mortgage loans with maturities of not...

12 CFR 584.2a - Exempt savings and loan holding companies and grandfathered activities.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 5 2010-01-01 2010-01-01 false Exempt savings and loan holding companies and... THE TREASURY SAVINGS AND LOAN HOLDING COMPANIES § 584.2a Exempt savings and loan holding companies and grandfathered activities. (a) Exempt savings and loan holding companies. (1) The following savings and loan...

An application of almost marginal conditional stochastic dominance (AMCSD) on forming efficient portfolios

Science.gov (United States)

Slamet, Isnandar; Mardiana Putri Carissa, Siska; Pratiwi, Hasih

2017-10-01

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.

Banking competition, risk and regulation

NARCIS (Netherlands)

Bolt, Wilko; Tieman, Alexander F.

2004-01-01

In a dynamic framework, commercial banks compete for customers by setting acceptance criteria for granting loans, while taking into account regulatory requirements. By easing its acceptance criteria a bank faces a trade-off between attracting more demand for loans, thus making higher per-period

Loan and nonloan flows in the Australian interbank network

Science.gov (United States)

Sokolov, Andrey; Webster, Rachel; Melatos, Andrew; Kieu, Tien

2012-05-01

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.

Pengaruh Capital Adequacy Ratio (Car), Loan to Deposit Ratio (Ldr) Dan Bopo Terhadap Profitabilitas (Roa Dan Roe) Bank Persero Indonesia Yang Dipublikasikan Bank Indonesia Periode 2010 – 2015

OpenAIRE

Khoirunnisa, Hani Maulida; Rodhiyah, Rodhiyah; Saryadi, Saryadi

2016-01-01

State-owned banks have involvement with many parties in their business, so the performance maintenance is benecessary to deal with banking risks that may arise. The downward trend in the profitability of state-ownedbanks indicated by Return on Assets (ROA) and Return on Equity (ROE) becomes a problem when the CapitalAdequacy Ratio (CAR), Loan to Deposit Ratio (LDR), and ROA experiencing upward trend.The purpose of this study was to determine the effect of CAR, LDR and ROA on ROA and ROE withe...

Formation of borrower’s bank credit scoring integrated model

Directory of Open Access Journals (Sweden)

O.V. Lysenok

2017-03-01

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.

Rules versus discretion in loan rate setting

NARCIS (Netherlands)

Cerqueiro, G.M.; Degryse, H.A.; Ongena, S.

2011-01-01

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

DEVELOPMENT OF THE AGRICULTURAL SECTOR FROM MOLDOVA THROUGH AGRICULTURE LOANS

Directory of Open Access Journals (Sweden)

Aliona SARGO

2013-01-01

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.

Female entrepreneurs in trouble: do their bad loans last longer?

OpenAIRE

Juri Marcucci; Paolo Emilio Mistrulli

2013-01-01

We investigate the duration of bad loans for a unique data set of sole proprietorships in Italy, finding that bad loans for female firms last longer. However, this result is mainly due to the fact that loans granted to female firms are less frequently written off than those to male ones, suggesting that for banks female firms might be more creditworthy than male firms. These findings are robust to censoring, alternative specifications of the distribution of bad loan duration and other bank-sp...

Export financing of nuclear power plants - banks experience

International Nuclear Information System (INIS)

Loeber

1976-01-01

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

Effectiveness of bank credit activity evaluation with application of economic and mathematic modeling

Science.gov (United States)

Galeeva, G. M.; Zagladina, E. N.; Kadeeva, E. N.

2018-05-01

The paper presents data on the influence of the most significant factors having impact on the credit portfolio volume, as well as conducts correlation and regression analysis with the subsequent construction of the trend for a short period. Credit activity is understood as the bank activity in the formation of a credit portfolio. Considering the structure of the bank credit portfolio, it can be observed that it consists of credits granted by the bank particularly for legal entities, individuals and other banks. Herewith, it is necessary to understand that any decrease in the credit portfolio will adversely affect the financial stability and effectiveness of any commercial bank. Moreover, during crisis periods, the policy and practice of banks have been determined as quite aggressive and conducted as such with regard to interest rates. The dynamics of credit portfolio volume has been selected as an independent factor due to the reason that it can fully explain the current development situation and the effectiveness of the bank credit policy. Considering the dependent factors, their influence will be assessed by the credit portfolio volume indicator. The authors have distinguished the following ones among them: the volume of credits granted to individuals; the volume of credits granted to legal entities; the amount of overdue credits in the credit portfolio; bank investments in the securities; inflation; key rate.

12 CFR 617.7415 - How does a qualified lender decide to restructure a loan?

Science.gov (United States)

2010-01-01

... restructure a loan? 617.7415 Section 617.7415 Banks and Banking FARM CREDIT ADMINISTRATION FARM CREDIT SYSTEM BORROWER RIGHTS Distressed Loan Restructuring; State Agricultural Loan Mediation Programs § 617.7415 How... the cost to the lender of restructuring the loan is equal to or less than the cost of foreclosure...

IMPACT OF THE GLOBAL FINANCIAL CRISIS ON THE CREDIT RISK MANAGEMENT IN A BANK

Directory of Open Access Journals (Sweden)

Jerzy Piotr Gwizdała

2016-06-01

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”.

Information Acquisition and Portfolio Performance

OpenAIRE

Guiso, Luigi; Jappelli, Tullio

2006-01-01

Rational investors perceive correctly the value of financial information. Investment in information is therefore rewarded with a higher Sharpe ratio. Overconfident investors overstate the quality of their own information, and thus attain a lower Sharpe ratio. We contrast the implications of the two models using a unique survey of customers of an Italian leading bank with portfolio data and measures of financial information. We find that the portfolio Sharpe ratio is negatively associated with...

Determinants of loan maturity in small business lending

Directory of Open Access Journals (Sweden)

Ashiqur Rahman

2017-06-01

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.

12 CFR 221.5 - Special purpose loans to brokers and dealers.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 3 2010-01-01 2010-01-01 false Special purpose loans to brokers and dealers... FEDERAL RESERVE SYSTEM CREDIT BY BANKS AND PERSONS OTHER THAN BROKERS OR DEALERS FOR THE PURPOSE OF PURCHASING OR CARRYING MARGIN STOCK (REGULATION U) § 221.5 Special purpose loans to brokers and dealers. (a...

Schistosomiasis control in China: the impact of a 10-year World Bank Loan Project (1992-2001).

Science.gov (United States)

Xianyi, Chen; Liying, Wang; Jiming, Cai; Xiaonong, Zhou; Jiang, Zheng; Jiagang, Guo; Xiaohua, Wu; Engels, D; Minggang, Chen

2005-01-01

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.

12 CFR 221.7 - Supplement: Maximum loan value of margin stock and other collateral.

Science.gov (United States)

2010-01-01

... 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... 12 Banks and Banking 3 2010-01-01 2010-01-01 false Supplement: Maximum loan value of margin stock...

Banking system reform, earnings quality and credit allocation

Institute of Scientific and Technical Information of China (English)

Xiuli Zhu; Lianjun Li; Yunkui Xue

2012-01-01

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 stateowned listed companies. Further investigation shows that due to the influence of rent-seeking, banks have eased the earnings requirements of non-stateowned listed companies. These findings enhance our understanding of the economic consequences of the banking system reform and of credit discrimination under the new regime.

Loans may keep CERN collider on target

CERN Multimedia

Abbott, A

1996-01-01

The European Laboratory for Particle Physics (CERN) is considering taking out bank loans to fund its Large Hadron Collider project. CERN officials are evaluating this option in view of the German government's decision to substantially reduce its annual contributions to the project. They state that the bank loans may be the only way to complete the project by the year 2005, especially if other contributing nations follow Germany's lead.

12 CFR 591.4 - Loans originated by lenders other than Federal savings associations.

Science.gov (United States)

2010-01-01

... Federal savings associations. (a) With regard to any real property loan originated by a lender other than... 12 Banks and Banking 5 2010-01-01 2010-01-01 false Loans originated by lenders other than Federal savings associations. 591.4 Section 591.4 Banks and Banking OFFICE OF THRIFT SUPERVISION, DEPARTMENT OF...

12 CFR 221.118 - Bank arranging for extension of credit by corporation.

Science.gov (United States)

2010-01-01

... corporation of an “unsecured” bank loan to exercise an option to purchase stock of the corporation is an... to the bank. The corporation would issue to the bank a guaranty of the loan and hold the purchased... of their options through an unsecured bank loan guaranteed by the company, thereby facilitating the...

An Exploratory Study On Bank Lending To SME Sector In Bhutan

Directory of Open Access Journals (Sweden)

Chokey Wangmo

2017-11-01

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.

78 FR 51046 - Registration of Mortgage Loan Originators

Science.gov (United States)

2013-08-20

... FARM CREDIT ADMINISTRATION 12 CFR Part 610 RIN 3052-AC78 Registration of Mortgage Loan Originators... residential mortgage loan originators employed by Farm Credit System (FCS or System) institutions. We are... loan originators at banks, savings associations, credit unions, FCS institutions, and their...

On the microeconomic problems studied by portfolio theory

Science.gov (United States)

Nikonov, Oleg; Medvedeva, Marina

2012-09-01

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 [1] and J. Tobin [2]. 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.

PRIVATE BANKING AND WEALTH MANAGEMENT SERVICES OFFERED BY BANKS

OpenAIRE

IMOLA DRIGĂ; DORINA NIŢĂ; IOAN CUCU

2009-01-01

The paper examines the features of private banking business focusing on the substantial growth in private banking over the last decade as commercial banks have targeted upmarket high net worth individuals. The accumulation of wealth has prompted the development of private banking services for high net worth individuals, offering special relationships and investment services. Private banking is about much more than traditional banking services of deposits and loans. It's about providing a one-...

Credit Risk in the Banking Sector in Kosovo

Directory of Open Access Journals (Sweden)

Muhamet Aliu

2017-05-01

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.

12 CFR 583.3 - Bank.

Science.gov (United States)

2010-01-01

... OFFICE OF THRIFT SUPERVISION, DEPARTMENT OF THE TREASURY DEFINITIONS FOR REGULATIONS AFFECTING SAVINGS 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...

Common Problems of Mortgage Banking Development in Poland

Directory of Open Access Journals (Sweden)

Anna Szelągowska

2007-03-01

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.

From the History of the Loan and Account Bank of Persia (From the Russian Archives

Directory of Open Access Journals (Sweden)

Irina K. Pavlova

2017-06-01

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.

Strategic Importance of Credit Risk Management to Shareholders’ Wealth-Sustanance in Nigerian Banks: an Empirical Analysis

Directory of Open Access Journals (Sweden)

Adebisi Sunday Abayomi

2012-02-01

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.

Banking system reform, earnings quality and credit allocation

Directory of Open Access Journals (Sweden)

Xiuli Zhu

2012-09-01

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.

Banks on Notice

Institute of Scientific and Technical Information of China (English)

无

2009-01-01

Regulators issue policies to guide China’s banks as massive loans compromise the banking sector’s ability to contain future risks R egulatory departments are strengthening their supervision over financial institutions to prevent an incomprehensible financial scenario from unfolding: the failure of the Chinese banking

Possible financing schemes for one-stop-shop service for sustainable renovation of single-family houses

DEFF Research Database (Denmark)

Mahapatra, Krushna; Gustavsson, Leif; Haavik, Trond

energy use behaviour of the occupants and the difficulty to predict future energy prices. The options to finance energy efficiency renovations include homeowners’ own resources, mortgage refinancing, flex loan, personal loan, financing by service providers, preferential loan, subsidies/grants, credit...... for the homeowners, and banks will have a less risky asset in their portfolio. In situations where homeowners cannot avail additional mortgage financing, e.g. those who recently purchased a house and used the limit to such loans, banks may consider an energy efficient renovation plan prepared by an entrepreneur...

12 CFR 926.2 - Bank authority to make advances to housing associates.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 7 2010-01-01 2010-01-01 false Bank authority to make advances to housing associates. 926.2 Section 926.2 Banks and Banking FEDERAL HOUSING FINANCE BOARD FEDERAL HOME LOAN BANK MEMBERS AND HOUSING ASSOCIATES FEDERAL HOME LOAN BANK HOUSING ASSOCIATES § 926.2 Bank authority to make...

Evaluation Of Selected Commercial Banks Financing Of Agro Based ...

African Journals Online (AJOL)

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 ...

12 CFR 615.5144 - Banks for cooperatives and agricultural credit banks.

Science.gov (United States)

2010-01-01

... such activities constitute a materially important line of business to its members. Also, investments... banks. 615.5144 Section 615.5144 Banks and Banking FARM CREDIT ADMINISTRATION FARM CREDIT SYSTEM FUNDING AND FISCAL AFFAIRS, LOAN POLICIES AND OPERATIONS, AND FUNDING OPERATIONS Investment Management § 615...

Bank Financing for SMEs : Evidence Across Countries and Bank-Ownership Types

NARCIS (Netherlands)

Beck, T.H.L.; Demirgüc-Kunt, A.; Martinez Peria, M.

2009-01-01

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

Banking Competition and Economic Stability

OpenAIRE

Ronald Fischer; Nicolás Inostroza; Felipe J. Ramírez

2013-01-01

We consider a two-period model of a banking system to explore the effects of competition on the stability and efficiency of economic activity. In the model, competing banks lend to entrepreneurs. After entrepreneurs receive the loans for their projects, there is a probability of a shock. The shock implies that a fraction of firms will default and be unable to pay back their loans. This will require banks to use their capital and reserves to pay back depositors, restricting restrict second per...

Loan managers' decisions and trust in entrepreneurs in different institutional contexts

DEFF Research Database (Denmark)

Moro, Andrea; Fink, Matthias; Maresch, Daniela

2018-01-01

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...

Adjustment of interbank lending in pre- and post-regulation periods: Empirical analysis of Vietnamese commercial banks

Directory of Open Access Journals (Sweden)

Ho Thanh Tung

2017-10-01

Full Text Available This article aims to analyze the interbank lending adjustment during the period when Vietnamese commercial banks are compliant with some parts of the Basel regulation framework. A pilot regulation period has started in 2011 and full application will be effective by the end of 2018. Partial adjustment models and variance decomposition are used for the analyses. In the analysis of the quarterly released financial statements of Vietnamese commercial banks in the period from 2008/Q1 to 2015/Q4, the empirical evidence showed that throughout the period, lending to non-bank and high liquidity assets contributed to the adjustment in both long run and short run with a negative association. In addition, the loan loss allowance contributed to the adjustment in the post-regulation period only with a positive association. These highly contributing factors also show a potential shock after the adjustment of the interbank lending. The results imply there is a need for interbank lending portfolio report and an efficient control over the IRB of Vietnamese commercial banks.

Monetary policy, bank size and bank lending: Evidence from Australia

OpenAIRE

Liu, Luke

2011-01-01

The transmission of monetary policy may hold the key to explaining the effects of policy on the economy. The objective of the study is to assess the importance of the bank lending channel in the transmission of monetary policy in Australia. In this paper, we found that the effectiveness of monetary policy varies with the size of the bank as well as the type of the loan. For different asset size and different kinds of loans, the effect of monetary policy is different. Thus, policy has distribu...

12 CFR 221.109 - Loan to open-end investment company.

Science.gov (United States)

2010-01-01

... CARRYING MARGIN STOCK (REGULATION U) Interpretations § 221.109 Loan to open-end investment company. In... customarily purchases stocks registered on a national securities exchange, the Board stated that in view of... 12 Banks and Banking 3 2010-01-01 2010-01-01 false Loan to open-end investment company. 221.109...

Six changes with the new Regulations on Automobile Loans

Institute of Scientific and Technical Information of China (English)

2004-01-01

<正> On Aug 16, 2004, the People’s Bank of China and China Banking Regulatory Commission (CBRC) jointly issued the new version of the Regulations on Automobile Loans. Due to be put into implementation on Oct 1, the new Regulations change radically compared with the previous version in terms of creditors, possible borrowers, rate of down payments, loan periods, etc.

APPLICATION OF LOANS AND THEIR IMPACT ON ECONOMIC DEVELOPMENT ASPECTS IN KOSOVO

Directory of Open Access Journals (Sweden)

Rexhepi Shaqir

2014-07-01

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.

Banking on women's spirit.

Science.gov (United States)

Yunus, M

1993-11-01

An interview with Professor Mummadad Yunus, Managing Director of the Grameen Bank, revealed that he has provided loans to poor women in Bangladesh since 1976 and that the Grameen Bank has continued his work since 1983. The idea behind the banking system is that poor people without traditionally accepted collateral are good credit risks. In 1993, the Grameen Bank had operations in 33,000 out of a possible 68,000 villages in Bangladesh. The operations include 1030 branches and a staff of 12,000 people. 1.6 million people are recipients of loans, of whom 94% are women. The population served is the poorest and has no experience in income generation. Conclusions drawn from this experience are that women are better managers of resources and are more serious entrepreneurs than men and that the benefits of loan programs for the poor go directly to children and households. Women's self-image suffers from negative social conceptions, and one task is to convince women of their value, skills, and possibility of advancement. The bank philosophy rests with the belief that all human beings are a "treasure of potential possibilities." Women are advised to protect their money and marriage and not to sacrifice one for the other. Husbands initially are against money going to wives, but eventually they understand that the family benefits. Over 200,000 loans have been made for the provision of housing. The loan requirement is that the woman must own the land on which the house is built. Husband's have the opportunity to transfer title of the land to the wife. Ownership of land provides security for the wife.

12 CFR 226.46 - Special disclosure requirements for private education loans.

Science.gov (United States)

2010-01-01

... GOVERNORS OF THE FEDERAL RESERVE SYSTEM TRUTH IN LENDING (REGULATION Z) Special Rules for Private Education Loans § 226.46 Special disclosure requirements for private education loans. (a) Coverage. The... 12 Banks and Banking 3 2010-01-01 2010-01-01 false Special disclosure requirements for private...

A Study of Supervision of China's Commercial Banks from the Perspective of the Trinity-Characteristics of Bank Supervision System

Institute of Scientific and Technical Information of China (English)

LV Jianglin; HUANG Guang

2015-01-01

Based on the theoretical analysis,this paper applies the entropy method to establish a comprehensive index system for the evaluation of the overall level of risk control and comprehensive efficiency of the supervision of China's commercial banks.Considering the trinity-characteristics of bank supervision system consisting of the People's Bank of China(PBC),the CBRC and the financial offices of local governments,the following conclusions have been drawn:the amount of penalties on banking illegal transactions is not correlated with the supervision efficiency of China's commercial banks;the capital adequacy ratio,the loan to deposit ratio,the percentage point of the non-performing loan rate of urban commercial banks higher than that of the national joint-stock banks are negatively correlated with the supervision efficiency of China 's commercial banks;the total asset variation of the PBC and the different loan balance in local and foreign currency of the banks are positively correlated with the supervision efficiency of China's commercial banks,but the effect is minor.Therefore,China should give the capital adequacy ratio a full play in the bank supervision,accelerate the construction of supervision information system and improve the supervision function of the local governments.

Credit Ratings and Bank Monitoring Ability

NARCIS (Netherlands)

Nakamura, L.I.; Roszbach, K.

2010-01-01

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

Network versus portfolio structure in financial systems

Science.gov (United States)

Kobayashi, Teruyoshi

2013-10-01

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.

Cross-Border Banking

OpenAIRE

Jonathan Eaton

1994-01-01

The banking systems of some countries export intermediation services to the rest of the world, while many other countries are net exporters of deposits to banks abroad and net importers of loans from banks abroad. Banking center countries typically have lower inflation, deeper financial systems, earn less government revenue from seigniorage, and have lower reserve money relative to bank assets than nonbanking-center countries. This paper develops a stylized model of regulated bank intermediat...

The Role of Participation Banking as Alternative Financing Channels to Substitute for Deposit Banks and its Growth in the Turkish Finance Market - Period: 2007-2015

Directory of Open Access Journals (Sweden)

Ferhat Sayım

2017-09-01

Full Text Available Financial systems and companies have become the most important reasons in the weakness of world economic system. The formation and development process of the financial structure also constitute the infrastructure of the world economic system. The path of the financial system and development has led to discuss with the financial crisis in 2008-2011. One of the solutions in order to reduce problems caused by the conventional banking system is alternative financing systems. In Turkey, the corporations based on profit share system are named participation banks. These banks which settle on different principles in the risk distribution of the portfolio acquired are analyzed more nowadays. Participation based banks are placed in practically every regulation related to banking terms and get their legal infrastructure more steady in the banking legislation of Turkey. This study is a continuation of a series related to the situation of participation banking in Turkey. On the other hand, the literature and the history of participation banking have been given less attention in this study. Literature information on methods in participation banks has been described in previous work of the series. Two analyzes were conducted in this study. One analysis is interpretive analysis that expresses the situation of applications of participation banking against banking risks. The other is an analysis of the figures of participation banks in Turkey as a continuation of the series. This study is a 2007-2015 part of research series. The study tries to explore the place and the importance of participation based banking with the various sub-headings, especially in Turkey. For this reason, we examine the comparative review 2007-2015 data of participation banks which are composed of Total Assets, Equity Net Profit, Collected Funds and Bank Loan Funds. Then we compare the total figures with deposit banks for the same period in Turkey.

I massimali di crescita: effetti territoriali e sulla struttura del sistema bancario. (Growth limits on bank assets: regional effects and the structure of the banking system.

Directory of Open Access Journals (Sweden)

A. NICCOLI

2013-12-01

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

THE ROLE OF COMMERCIAL BANKS FROM ROMANIA IN THE ATTRACTION OF

Directory of Open Access Journals (Sweden)

Corina BERICA

2011-12-01

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.

RMB Business Boost for Foreign Banks

Institute of Scientific and Technical Information of China (English)

WANG PEI

2006-01-01

@@ With the competition over foreign currency loans becoming intensified among foreign and Chinese banks, rivalry on loans made in RMB are seeing a similar trend. Specifically, the local banks' "comfort zone" has been challenged as the country's financial industry opens according to the timetable of WTO agreement, with full opening arriving at the end of this year.

Nothing special about banks : Competition and bank lending in Britain 1885-1925

NARCIS (Netherlands)

Braggion, Fabio; Dwarkasing, Narly; Moore, Lyndon

2017-01-01

We investigate the impact of increasing bank concentration on bank loan contracts in a lightly regulated environment. This environment allows us to abstract from possible confounding effects of regulation to focus on the “pure” effects of competition on bank lending. We study over 30,000 British

Portfolio Selection with Jumps under Regime Switching

Directory of Open Access Journals (Sweden)

Lin Zhao

2010-01-01

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.

12 CFR 614.4357 - Banks for cooperatives look-through notes.

Science.gov (United States)

2010-01-01

....4357 Section 614.4357 Banks and Banking FARM CREDIT ADMINISTRATION FARM CREDIT SYSTEM LOAN POLICIES AND... endorsement or unconditional guarantee by the borrower; (b) The bank determines the financial condition, repayment capacity, and other credit factors of the loan to the original maker reasonably justify the credit...

Managing Student Loan Default Risk: Evidence from a Privately Guaranteed Portfolio.

Science.gov (United States)

Monteverde, Kirk

2000-01-01

Application of the statistical techniques of survival analysis and credit scoring to private education loans extended to law students found a pronounced seasoning effect for such loans and the robust predictive power of credit bureau scoring of borrowers. Other predictors of default included school-of-attendance, school's geographic location, and…

Contribution of Macroprudensial Policy of Central Bank On Microprudensial Islamic Banking

Directory of Open Access Journals (Sweden)

Riduwan Riduwan

2018-03-01

Full Text Available The purpose of this research will be to answer the contribution of the macroprudential policy of Central Bank to the microprudential of islamic banking during the period of January 2008 - February 2016. The method used by quantitative analysis with panel data regression to be able to describe macroprudential policy contribution to FDR of islamic banking in Indonesia. Macroprudential policy instruments use Loan-to-Value Ratio (LTR, Statutory Reserves (GWM based on Loan-to-Funding Ratio (LFR and Countercyclical Capital Buffer (CCB. The islamic bankingmicroprudential instrument used is Financing to Deposit Ratio (FDR. The result shows that macroprudential policy contribution through LTV instrument to FDR has negative and significant influence. Statutory Reserves based on LFR on FDR have a positive and significant influence and CCB on FDR of Indonesia’s islamic banking shows negative and significant influence.

Correlates of Success in World Bank Development Policy Lending

OpenAIRE

Moll, Peter; Geli, Patricia; Saavedra, Pablo

2015-01-01

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...

Collateral in Loan Classification and Provisioning

OpenAIRE

In W Song

2002-01-01

Adequate loan classification practices are an essential part of a sound and effective credit risk-management process in a bank. Failure to identify deterioration in credit quality in a timely manner can aggravate and prolong the problem. Two key issues arise with regard to the use of collateral in the context of loan classification and provisioning. In particular, the questions arise whether collateral should be taken into account in classifying a collateralized loan, and whether it should be...

Using Banks: Teaching Banking Skills to Low-Income Consumers.

Science.gov (United States)

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),…

Empirical estimation of default and asset correlation of large corporates and banks in India

OpenAIRE

Bandyopadhyay, Arindam; Ganguly, Sonali

2011-01-01

Estimation of default and asset correlation is crucial for banks to manage and measure portfolio credit risk. This would require studying the risk profile of the banks’ entire credit portfolio and developing the appropriate methodology for the estimation of default dependence. Measurement and management of correlation risk in the credit portfolio of banks has also become an important area of concern for bank regulators worldwide. The BCBS (2006) has specifically included an asset correlation ...

12 CFR 931.8 - Other restrictions on the repurchase or redemption of Bank stock.

Science.gov (United States)

2010-01-01

... redemption of Bank stock. 931.8 Section 931.8 Banks and Banking FEDERAL HOUSING FINANCE BOARD FEDERAL HOME LOAN BANK RISK MANAGEMENT AND CAPITAL STANDARDS FEDERAL HOME LOAN BANK CAPITAL STOCK § 931.8 Other restrictions on the repurchase or redemption of Bank stock. (a) Capital impairment. A Bank may not redeem or...

77 FR 38015 - Community Programs Guaranteed Loans

Science.gov (United States)

2012-06-26

... section. This is based upon the Agency's experience to date in financing this type of project and the... sections, in order to clarify the types of projects that are eligible for a Community Facilities Guaranteed... Program by limiting the risk to the guaranteed loan portfolio. RHS is seeking to prohibit the financing of...

Test of the Bank Lending Channel: The Case of Poland

Directory of Open Access Journals (Sweden)

Yu HSING

2013-11-01

Full Text Available This paper tests the bank lending channel for Poland based on a simultaneousequation model consisting of demand for and supply of bank loans. The three-stage least squares method is employed in empirical work. This paper finds support for a bank lending channel for Poland. Expansionary monetary policy through a lower money market rate or open market purchase of government bonds to increase bank reserves/deposits would increase bank loan supply.

WHAT DETERMINES THE PROFITABILITY OF BANKS? EVIDENCE FROM THE US

OpenAIRE

Ruochen Wang; Xuan Wang

2015-01-01

This paper examines the factors affecting bank profitability. We use a sample of US banks over the period 2002-2014, and measure profitability using both return on assets (ROA) and return on equity (ROE). We find that banks have higher profitability when they have: (1) a lower loans to total assets ratio, (2) a lower customer deposits to total liabilities ratio, (3) a lower nonperforming loans to gross loans ratio, (4) higher efficiency, and (5) higher revenue diversification.   We...

Distress classification measures in the banking sector

Directory of Open Access Journals (Sweden)

Maria Carapeto

2011-12-01

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.

12 CFR 563.43 - Loans by savings associations to their executive officers, directors and principal shareholders.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 5 2010-01-01 2010-01-01 false Loans by savings associations to their... § 563.43 Loans by savings associations to their executive officers, directors and principal shareholders...) that is a savings and loan holding company. A company has control over a saving association if it...

Bank, Banking System, Macroprudential Supervision, Stability of Banking System

Directory of Open Access Journals (Sweden)

Tetiana Vasilyeva

2016-10-01

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

13 CFR 307.9 - Revolving Loan Fund Plan.

Science.gov (United States)

2010-01-01

... 13 Business Credit and Assistance 1 2010-01-01 2010-01-01 false Revolving Loan Fund Plan. 307.9... economic development plan, if applicable, and business development objectives, and shall describe the RLF's financing strategy, policy and portfolio standards. (2) Part II of the Plan titled “Operational Procedures...

Geographic Diversification, Competition and Bank Survival

NARCIS (Netherlands)

Jochem, T.

2013-01-01

This article analyzes the effects from portfolio diversification and banking competition on the stability of U.S. banks during the 2008-2011 banking crisis. To do so, it uses exogenous cross-sectional and time-series variation in states' branching restrictions between 1997-2005, the degree of local

The Impact of Monetary Policy on Bank Credit During Economic Crisis: Indonesia's Experience

OpenAIRE

Mongid, Abdul

2008-01-01

The monetary policy mechanism by which monetary policy was transmitted to thereal economy had emerged as the pivotal discussion topic recently. This paper tried to discussthe impact of Bank Indonesia’s monetary policy on loan bank. By using simple loan bankframework we concluded that monetary policies were able to influence loan bank. Themonetary variables such as discount rate policy, base money and exchange rate policy werevery important in determining the banking credit. As the credit was ...

Activity diversification and performance of Islamic banks in Malaysia

OpenAIRE

CHATTI, Mohamed Ali; KABLAN, Sandrine; YOUSFI, Ouidad

2010-01-01

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...

12 CFR 347.304 - Accounting for fees on international loans.

Science.gov (United States)

2010-01-01

... accepted accounting principles. ... 12 Banks and Banking 4 2010-01-01 2010-01-01 false Accounting for fees on international loans. 347... OF GENERAL POLICY INTERNATIONAL BANKING International Lending § 347.304 Accounting for fees on...

Transformation of the Polish Banking Sector

Directory of Open Access Journals (Sweden)

Marek Stefański

2009-07-01

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.

It’s Time for Green Banking Management in Romania

Directory of Open Access Journals (Sweden)

Ioana Florentina Savu

2012-04-01

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.

Banking financing for SME's : Evidence across countries and bank ownership types

NARCIS (Netherlands)

Beck, T.H.L.; Demirgüc-Kunt, A.; Martinez Peria, M.

2011-01-01

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

Determinants of non-performing loans: The case of Eurozone

Directory of Open Access Journals (Sweden)

Makri Vasiliki

2014-01-01

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.

12 CFR 621.5 - Accounting for the allowance for loan losses and chargeoffs.

Science.gov (United States)

2010-01-01

... according to generally accepted accounting principles. (b) Develop, adopt, and consistently apply policies... 12 Banks and Banking 6 2010-01-01 2010-01-01 false Accounting for the allowance for loan losses... ACCOUNTING AND REPORTING REQUIREMENTS General Rules § 621.5 Accounting for the allowance for loan losses and...

Small finance banks: Challenges

Directory of Open Access Journals (Sweden)

Jayadev M

2017-12-01

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.

Capital Requirements and Banks' Leniency

DEFF Research Database (Denmark)

Dietrich, J. Kimball; Wihlborg, Clas

2003-01-01

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....

Credit risk assessment model for Jordanian commercial banks: Neural scoring approach

Directory of Open Access Journals (Sweden)

Hussain Ali Bekhet

2014-01-01

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.

Strategic loan defaults and coordination : An experimental analysis

NARCIS (Netherlands)

Trautmann, S.T.; Vlahu, R.

2013-01-01

This paper experimentally studies the impact of bank and borrower fundamentals on loan repayment. We find that solvent borrowers are more likely to default strategically when the bank’s expected strength is low, although loan repayment is a Pareto dominant Nash equilibrium. Borrowers are also less

On risk, leverage and banks: do highly leveraged banks take on excessive risk?

NARCIS (Netherlands)

Koudstaal, M.; van Wijnbergen, S.

2012-01-01

This paper deals with the relation between excessive risk taking and capital structure in banks. Examining a quarterly dataset of U.S. banks between 1993 and 2010, we find that equity is valued higher when more risky portfolios are chosen when leverage is high, and that more risk taking has a

Loan Growth Slowing down in 1st 7 Months

Institute of Scientific and Technical Information of China (English)

无

2004-01-01

@@ The growth of loans significantly slowed during the first seven months of this year, which indicates the government's economic macro control measures are taking effect, the People's Bank of China (PBOC) said. By the end of July, outstanding loans of all financial institutions stood at RMB18.1 trillion (US$2.18 trillion),up 15.9% on a year-on-year basis. The growth rate compared to 23.2% registered during the same period in 2003,the central bank said.

Financial Statements as Monitoring Mechanisms: Evidence from Small Commercial Loans

OpenAIRE

Minnis, Michael; Sutherland, Andrew Gordon

2016-01-01

Using a data set that records banks’ ongoing requests of information from small commercial borrowers, we examine when banks use financial statements to monitor borrowers after loan origination. We find that banks request financial statements for half the loans and this variation is related to borrower credit risk, relationship length, collateral, and the provision of business tax returns, but in complex ways. The relation between borrower risk and financial statement requests has an inverted ...

Beyond "banking for the poor": credit mechanisms and women's empowerment.

Science.gov (United States)

Albee, A

1996-10-01

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.

FAKTOR-FAKTOR YANG MEMPENGARUHI RISIKO KREDIT MODAL KERJA BANK PEMBANGUNAN DAERAH DI INDONESIA

Directory of Open Access Journals (Sweden)

Novita Saragih

2017-06-01

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.

The Interrelationship Between Bank Failure and Political ...

African Journals Online (AJOL)

African Journal of Finance and Management ... non-use of prudent classification risk assessment methods, fraud and management deficiencies. ... For example, at the end of 1998, out of 78% NBC loan portfolio the majority went to parastatals ...

An empirical study on the relationship between customers' credit rating and their financial transcripts for loan assignment

Directory of Open Access Journals (Sweden)

Hassan Najafi

2012-01-01

Full Text Available One of the most important issues on revenue management in banking industries is the assignment of loan to customers. In fact, a big portion of banks' revenue is from loan assignment and choosing appropriate customers for loan assignment not only reduces the financial risk but also it can increase the revenue. In this study, we perform an empirical study to find out whether customers' financial statements could provide enough information about customers for loan assignment. The other objective of this study is to find out whether banks' officials could understand about the details of customers' financial statements. Finally, we want to find out whether there is any relationship between unpaid loans and customers' credit rating. The present study is executed on an Iranian bank by distributing a questionnaire analyzing the results. The results indicate that there are some strong evidence that financial statement could help bank official determine customers' credit rating. The survey also concludes that highly education and experienced employees are the best people for devoting best credit rating for customers.

Loan collaterals and collateral substitutes in rural finance: a review ...

African Journals Online (AJOL)

Loan collaterals and collateral substitutes in rural finance: a review. ... have difficulties in obtaining loans from banks and other financial institutions because ... The limited availability of conventional collaterals in rural financial markets has led ...

CROSS-COUNTRY STUDY ON THE DETERMINANTS OF BANK FINANCIAL DISTRESS

Directory of Open Access Journals (Sweden)

Zhen-Jia-Liu

2015-08-01

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

12 CFR 614.4010 - Agricultural credit banks.

Science.gov (United States)

2010-01-01

...) of this chapter, for the export (including the cost of freight) of agricultural commodities or... 12 Banks and Banking 6 2010-01-01 2010-01-01 false Agricultural credit banks. 614.4010 Section 614.4010 Banks and Banking FARM CREDIT ADMINISTRATION FARM CREDIT SYSTEM LOAN POLICIES AND OPERATIONS...

12 CFR 502.29 - How does OTS determine the condition component for a savings and loan holding company?

Science.gov (United States)

2010-01-01

... for a savings and loan holding company? 502.29 Section 502.29 Banks and Banking OFFICE OF THRIFT SUPERVISION, DEPARTMENT OF THE TREASURY ASSESSMENTS AND FEES Assessments Savings and Loan Holding Companies-Calculation of Assessments § 502.29 How does OTS determine the condition component for a savings and loan...

12 CFR 502.26 - How does OTS calculate the semi-annual assessment for savings and loan holding companies?

Science.gov (United States)

2010-01-01

... assessment for savings and loan holding companies? 502.26 Section 502.26 Banks and Banking OFFICE OF THRIFT SUPERVISION, DEPARTMENT OF THE TREASURY ASSESSMENTS AND FEES Assessments Savings and Loan Holding Companies-Calculation of Assessments § 502.26 How does OTS calculate the semi-annual assessment for savings and loan...

Home loan profitability optimisation in the financial industry / by Sias Heyns

OpenAIRE

Heyns, Sias

2007-01-01

Product profitability needs to remain a competitive advantage to a bank's home loan product. Ever changing customer needs and even more demanding customers today enforce reasons to investigate the profitability of home loans. Other aspects to consider includes transfer pricing, ROA, cost to deliver product to market areas (marketing and distribution cost) and break-even period. Banks are facing immense challenges to achieve sustainable profitability. Historically low interest rates are compre...

The investigation on the relationship between the problem of long-term loan and economic growth

Institute of Scientific and Technical Information of China (English)

Wenjie Du

2011-01-01

Purpose-Since the reform and opening-up policy,the long-term problem of loans became more and more serious when China's economy maintained rapid growth.The purpose of this paper is to explore the profound causes of the medium-and long-term problem of loans and the relationship between it and economic growth.Design/methodology/approach-Using panel data for 28 provinces and cities of China during 1994-2005,this paper investigates the determinants on the maturity of bank credit using threshold panel data of Hansen.In addition,using dynamics panel data,this paper investigates the effects of the maturity structure of bank credit on economic growth.Findings-The drop of bank industry concentration tends to increase the supply of long-term loans.The raise of economic growth and the increase of industrialization degree promote the demand of long-term loans,significantly.Furthermore,the threshold effects of inflation exist.When the initial inflation is lower than 3.9 percent,the raise of inflation can increase the supply of long-term loans.When the initial inflation is higher than 3.9 percent,the raise of inflation can decrease the supply of long-term loans.The increase in the supply of long-term loans can promote the economic growth.Originality/value-The paper has two innovations:first,when studying the determinants on the maturity of bank credit,using the threshold panel approach takes account of the nonlinear adjustment of inflation;second,including the maturity of bank credit into the realm of financial development studies the relationship between this and economic growth.

12 CFR 617.7430 - Are institutions required to participate in state agricultural loan mediation programs?

Science.gov (United States)

2010-01-01

... 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...

BANK RATING. A COMPARATIVE ANALYSIS

Directory of Open Access Journals (Sweden)

Batrancea Ioan

2015-07-01

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.

12 CFR Appendix to Part 215 - Section 5200 of the Revised Statutes Total Loans and Extensions of Credit

Science.gov (United States)

2010-01-01

... extensions of credit and not upon any full or partial recourse endorsement or guarantee by the transferor... Loans and Extensions of Credit Appendix to Part 215 Banks and Banking FEDERAL RESERVE SYSTEM BOARD OF... Statutes Total Loans and Extensions of Credit (a)(1) The total loans and extensions of credit by a national...

A Knowledge-based System for the Analysis of the Ability of Paying back Loans

Institute of Scientific and Technical Information of China (English)

朱明; 杨保安

2001-01-01

This paper describes the development of a knowledgebased system (KBS) for determining whether or not, and under what conditions, a bank Ioan officer should grant a business loan to a company. The prototype system developed focuses on what is bank loans risks management, how to prevent risk by the analysis of the ability of paying back loans. The paper makes the structural analysis involved in the system's decision situation, the structured situation diagram or model, dependency diagram and the document needed by the KBS prototype system thus are developed. Through testing the samples from loan business, the quality for the analysis of the ability of paying back loans can be effectively evaluated by the KBS prototype system.

12 CFR 228.26 - Small bank performance standards.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 3 2010-01-01 2010-01-01 false Small bank performance standards. 228.26... bank performance standards. (a) Performance criteria—(1) Small banks that are not intermediate small... performance is evaluated pursuant to the following criteria: (1) The bank's loan-to-deposit ratio, adjusted...

Farmers Utilization Of Loan Schemes Of The Nigerian Agricultural ...

African Journals Online (AJOL)

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 ...

MANAGING THE USE OF DERIVATIVE INSTRUMENTS FOR PORTFOLIO RISK PURPOSES

Directory of Open Access Journals (Sweden)

Mădălina Antoaneta RĂDOI

2017-05-01

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.

Effect of capital constraints on risk preference behavior of commercial banks

Institute of Scientific and Technical Information of China (English)

Li Ma; Junxun Dai; Xian Huang

2011-01-01

Purpose-The purpose of this paper is to analyze how the financial supervision authority utilizes the restrictions of capital constraints imposing on commercial banks the need to develop the macro economy.Design/methodology/approach-This paper uses multilateral game to deduce the loan characteristics of banks,vector and void coordinates to analyze the behavior choices of banks under capital supervision,sets up an index to describe the risk preference of banks,and analyzes the process with Chinese data empirically.Findings-This paper finds big banks have a loan preference for big enterprises and small banks have a preference for establishing a bank syndicate to pursue large projects.Further,the paper notes the conditions by which the heterology banks choose loans across the border and proves that changes of capital requirements would force the credit structure of the commercial banks to adjust along an efficient frontier broken line or an efficient frontier plane under the conditions of interest rate regulation or interest rate marketization,respectively.Research limitations/implications-It is very complex to describe the choices of risk behavior of banks and the simple supervision method needs to be adjusted.Practical implications-This paper finds that banks show risk preferences of credit structure,and capital constraints would affect it greatly;regulators should guard against capital constraint softening.Originality/value-It is the first time that the conditions of banks beyond the loan border have been studied and the behavior adjustment of banks using the vector and void coordinate analyzed.

Bank pricing under oligopsony-oligopoly: Evidence from 103 developing countries

OpenAIRE

Marrouch, Walid; Turk-Ariss, Rima

2012-01-01

We propose a generic oligopsony-oligopoly model to study bank behavior under uncertainty in developing countries. We derive a pricing structure that acknowledges market power in both the deposit and loan markets and identify two theoretical components to the loan rate: a rent extraction component resulting from the interaction between the choke price of loans and prevailing banking structures, and a markup on deposit funding costs that captures the transformation efficiency of financial inter...

Capital Regulation and Bank Risk-Taking Behavior: Evidence from Pakistan

Directory of Open Access Journals (Sweden)

Badar Nadeem Ashraf

2016-08-01

Full Text Available In response to the global financial crisis of 2007–2009, risk-based capital requirements have been reinforced in the new Basel III Accord to counter excessive bank risk-taking behavior. However, prior theoretical as well as empirical literature that studies the impact of risk-based capital requirements on bank risk-taking behavior is inconclusive. The primary purpose of this paper is to examine the impact of risk-based capital requirements on bank risk-taking behavior, using a panel dataset of 21 listed commercial banks of Pakistan over the period 2005–2012. Purely regulatory measures of bank capital, capital adequacy ratio, and bank assets portfolio risk, risk-weighted assets to total assets ratio, are used for the main analysis. Recently developed small N panel methods (bias corrected least squares dummy variable (LSDVC method and system GMM method with instruments collapse option are used to control for panel fixed effects, dynamic dependent variables, and endogenous independent variables. Overall, the results suggest that commercial banks have reduced assets portfolio risk in response to stringent risk-based capital requirements. Results also confirm that all banks having risk-based capital ratios either lower or higher than the regulatory required limits, have decreased portfolio risk in response to stringent risk-based capital requirements. The results are robust to alternative proxies of bank risk-taking, alternative estimation methods, and alternative samples.

Studying borrower level risk characteristics of education loan in India

Directory of Open Access Journals (Sweden)

Arindam Bandyopadhyay

2016-09-01

Full Text Available This paper empirically investigates the granular level risk of education loan using a cross section of data from 5000 borrowers obtained from four major public sector banks in India. The findings suggest that education loan defaults are mainly influenced by security, borrower margin, and repayment periods. The presence of guarantor or co-borrower and collateral significantly reduce default loss rates. The socioeconomic characteristics of borrowers and their regional locations also act as important factors associated with education loan defaults. The results suggest that by segmenting borrowers by probability of default and loss given default in a multidimensional scale, banks can adopt better risk mitigation and pricing strategies to resolve borrower problems.

Mortgage lenders and loans

NARCIS (Netherlands)

Aalbers, M.B.; Smith, S.J.

2012-01-01

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,

Pengaruh Non Performing Loan Sebagai Dampak Krisis Keuangan Global terhadap Profitabilitas Perusahaan Perbankan

Directory of Open Access Journals (Sweden)

Tia Melya Sari

2015-12-01

Full Text Available The research purpose is to examine the effect of non-performing loans (NPL in the global financial crisis on the corporate profitability of banks (listed on the Stock Exchange in 2003-2010. Independent variable in this research is Non Performing Loan (NPL and the dependent variable is probability by return on asset.Sampling technique is used non-probability purposive sampling, so to be concluded  the samples used 15 banks. The method of the research is quantitative and description data non performing loan and probability (return on asset bank listing on the Stock Exchange 2003-2010 period. Which are then analyzed by employing statistical analysis, such as simple linier regression, correlation analysis, determination coefficient analysis, and t-test. The data is calculated by SPSS 16 for windows. Based on the research result, there is not influence between non performing loan to probability (return on asset. The two variables show a very weak correlation at 0,142 with negative correlation value. This mean if non performing loan is increasing, profitability (return on asset is decreasing and vice versa. The determination coefficient is 2% and the rest 98% which is influence by other factors. While in the hypothesis examination using t test, t calculation is -1,563 and t table 1,658. As such H0 is accepted. So in conclusion, non  performing loan does not significantly affect the level of profitability (ROA company. Because the intermediary function of banks is not running properly.

12 CFR 25.26 - Small bank performance standards.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 1 2010-01-01 2010-01-01 false Small bank performance standards. 25.26 Section... § 25.26 Small bank performance standards. (a) Performance criteria—(1) Small banks that are not... lending performance is evaluated pursuant to the following criteria: (1) The bank's loan-to-deposit ratio...

12 CFR 615.5335 - Bank net collateral ratio.

Science.gov (United States)

2010-01-01

... 12 Banks and Banking 6 2010-01-01 2010-01-01 false Bank net collateral ratio. 615.5335 Section 615.5335 Banks and Banking FARM CREDIT ADMINISTRATION FARM CREDIT SYSTEM FUNDING AND FISCAL AFFAIRS, LOAN POLICIES AND OPERATIONS, AND FUNDING OPERATIONS Surplus and Collateral Requirements § 615.5335 Bank net...

Mortgage Loan Portfolio Optimization Using Multi-Stage Stochastic Programming

DEFF Research Database (Denmark)

Rasmussen, Kourosh Marjani; Clausen, Jens

2007-01-01

We consider the dynamics of the Danish mortgage loan system and propose several models to reflect the choices of a mortgagor as well as his attitude towards risk. The models are formulated as multi stage stochastic integer programs, which are difficult to solve for more than 10 stages. Scenario...

Implementation of the Indonesian Banking Architecture as a Blueprint of the Direction And Order of the National Banking System: Empirical Study of Indonesian Commercial Banking

Directory of Open Access Journals (Sweden)

Devy M. Puspitasari

2015-03-01

Full Text Available This study aims to examine the influence of Capital Adequacy Ratio (CAR, earning assets, and liquidity against Return on Asset (ROA in the conventional bank which has the biggest asset listed in Indonesian Stock Exchange (IDX during the period of 2006 to 2010. This research used time series data from Bank Indonesia’s report and financial reports annually published by banking firms listed in IDX. After passing the purposive sampling, there were 27 conventional banks listed in IDX as sample in this study. By using multiple regression analysis (F-test, results showed that CAR, Non Performing Loan (NPL, and Non Performing Loan (NPL collectively have significant influence on ROA. However, by using individual analysis (t-test, NPL has a negative and significant influence on ROA, while CAR and LDR have no significant influence on ROA.

Achievements and challenges of the World Bank Loan/Department for International Development grant-assisted Tuberculosis Control Project in China.

Science.gov (United States)

Kong, Peng; Jiang, Xu; Zhang, Ben; Jiang, Shi-wen; Liu, Bo

2011-07-01

In March 2002, the government of China launched the World Bank Loan/ Department for International Development-supported Tuberculosis (TB) Control Project to reduce the prevalence and mortality of TB. The project generated promising results in policy development, strengthening of TB control systems, patient treatment success, funds management, and the introduction of legislation. In light of the global TB epidemic and control environment, it is useful to review the TB control priorities of the project, summarize the achievements and experiences around its implementation.

12 CFR 502.28 - How does OTS determine the organizational form component for a savings and loan holding company?

Science.gov (United States)

2010-01-01

... component for a savings and loan holding company? 502.28 Section 502.28 Banks and Banking OFFICE OF THRIFT SUPERVISION, DEPARTMENT OF THE TREASURY ASSESSMENTS AND FEES Assessments Savings and Loan Holding Companies... savings and loan holding company that OTS regulates under section 10(l) of the HOLA. OTS will compute your...

Factors Affecting Loan Utilization And Repayment Patterns By Small ...

African Journals Online (AJOL)

The study identified factors affecting loan utilization and repayment patterns by small holder farmers of the Nigerian Agricultural Co-operative and Rural Development Bank (NACRDB) Osogbo branch in Osun State. Two Local Government Areas with large number of loan beneficiaries from 2003 to 2008 in NACRDB were ...

Asset quality in a crisis period: An empirical examination of Ghanaian banks

Directory of Open Access Journals (Sweden)

Abdul Latif Alhassan

2014-01-01

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.

Jordan Banks Financial Soundness Indicators

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Imad Kutum

2015-09-01

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.

Sequential Banking.

OpenAIRE

Bizer, David S; DeMarzo, Peter M

1992-01-01

The authors study environments in which agents may borrow sequentially from more than one leader. Although debt is prioritized, additional lending imposes an externality on prior debt because, with moral hazard, the probability of repayment of prior loans decreases. Equilibrium interest rates are higher than they would be if borrowers could commit to borrow from at most one bank. Even though the loan terms are less favorable than they would be under commitment, the indebtedness of borrowers i...

[Progress report on a World Bank loan to China for a tuberculosis control project].

Science.gov (United States)

Zhao, F; Chi, Y; Wang, K

1995-02-01

The progress of the World Bank loaned TB control project implemented from the second quarter of 1991 to the fourth quarter of 1993 was described in this paper. In the past three years, 737 counties of the 12 provinces with the population of 360 million has been covered by the project. Among 95176 new smear positive cases discovered, 93909 patients received free treatment of TB. The treatment coverage is 98.7%, of which 95% were treated under full course supervision. The smear conversion rate at two, three months of new smear positive TB patients are 83.4% and 90.6% respectively. The cohort analysis showed that the cure rate is 89.8%, which has reached the advanced level of the modern national tuberculosis control programme in the world.

Impact Assessment of Bank Consolidation on the Performance of Commercial Banks in Nigeria

Directory of Open Access Journals (Sweden)

Edirin Jeroh

2015-10-01

Full Text Available This study focuses on an impact assessment of the consolidation exercise on the performance of commercial banks in Nigeria. While prior studies focused on the financial performance of banks (with emphasis on profitability, the main thrust of this study was on how the consolidation exercise had affected different areas of commercial banks in Nigeria other than profitability. Secondary data were sourced from the annual accounts and statistical bulletins of the CBN and SEC respectively for the relevant years. The data obtained were analysed by means of sensitivity analysis, in addition to the correlation and regression analyses. The results obtained show that the consolidation exercise had positive impact on the selected variables (Non Performing Loans, Liquidity Ratio, Bank Credit to Private Sector and Bank Capital To Asset Ratio for this study. Based on the above findings, we recommend among others that while efforts are made by the CBN to sustain the increased capital base of banks, a very sound corporate governance framework and effective risk management systems must be put in place to check the level of non-performing loans which seem to be predominant in the industry. The quality of bank credit to private sector and their recovery procedures should also be improved upon.

Active Risk Management and Banking Stability

NARCIS (Netherlands)

Silva Buston, C.F.

2013-01-01

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

13 CFR 307.15 - Prudent management of Revolving Loan Funds.

Science.gov (United States)

2010-01-01

... effect from time to time in the United States and the provisions outlined in OMB Circular A-133 and the... RLF Recipient's financial statements to show the fair market value of an RLF's loan portfolio... doing so compromises the ability of the RLF Recipient to implement its financing strategy. (d) Private...

Dr. Alyce SU on China Overseas Investment Strategy

Institute of Scientific and Technical Information of China (English)

2010-01-01

@@ Brazil Brazil Investment Background Brazil's National Bank for Economic and Social Development (BNDES) (similar role to China Development Bank) is Brazil's leading long term loan provider to Brazilian domestic enterprises. BNDES's subsidiary BNDESPar holds shares of Brazil's listed and unlisted companies. Since 2010, BNDES and BNDESPar have been restructuring investment portfolio by selling shares in Fibria and 2.4% of Banco de Brasil for cash for making future loans. It's 5.3% shares in VALE is widely expected to be the next liquidity event.

Bankruptcy and loans in Puerto Rico:an exploratory overview of their relationship

Directory of Open Access Journals (Sweden)

Marta Álvarez

2013-06-01

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.

12 CFR 34.24 - Nonfederally chartered commercial banks.

Science.gov (United States)

2010-01-01

... 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...

Bank Lending Policy, Credit Scoring and Value at Risk

OpenAIRE

Jacobson, Tor; Roszbach, Kasper

1998-01-01

In this paper we apply a bivariate probit model to investigate the implications of bank lending policy. In the first equation we model the bank´s decision to grant a loan, in the second the probability of default. We confirm that banks provide loans in a way that is not consistent with default risk minimization. The lending policy must thus either be inefficient or be the result of some other type of optimizing behavior than expected profit maximization. Value at Risk, being a value weighted ...

Federal Workforce: Attrition Rates at Ex-Im Bank and Similar Agencies

National Research Council Canada - National Science Library

Hess, James

1997-01-01

.... Financing and protection provided by Ex-Im Bank includes (1) loans to foreign buyers of U.S. exports, (2) loan guarantees to commercial lenders providing repayment protection for loans to foreign buyers...

Determinants of Banking Credit Default in Indonesia: A Comparative Analysis

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Muhammad Imaduddin

2008-08-01

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

DETERMINANTS OF BUSINESS LOAN DEFAULT IN GHANA

Directory of Open Access Journals (Sweden)

Akwaa-Sekyi, Ellis Kofi

2015-05-01

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.

Interest rate and commercial banks' lending operations in Nigeria: A ...

African Journals Online (AJOL)

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 ...

78 FR 22260 - Sub-Saharan Africa Advisory Committee of the Export-Import Bank of the United States (Ex-Im Bank...

Science.gov (United States)

2013-04-15

... developments in Sub-Saharan Africa markets by Ex-Im Bank staff; an update on the Bank's on-going business... development and implementation of policies and programs designed to support the expansion of the Bank's financial commitments in Sub- Saharan Africa under the loan, guarantee, and insurance programs of the Bank...

Achievement of the World Bank loan project on schistosomiasis control (1992-2000) in Hubei province and the challenge in the future.

Science.gov (United States)

Changsong, Sun; Binggui, Yu; Hongyi, Liao; Yuhai, Dai; Xu, Xingjian; Huiguo, Zhu; Yong, Jiang

2002-05-01

Since the World Bank provided a loan for control of schistosomiasis in China, started from 1992, with the objective of a reduction of prevalence and intensity of the infection both in humans and animals by 40%, through mass chemotherapy in areas of high prevalence, and selective chemotherapy in areas with medium and low endemicity together with focal mollusciciding, the objective of morbidity control of the project has been reached in Hubei Province.

Bank Valuation and Its Connections with the Subprime Mortgage Crisis and Basel II Capital Accord

Directory of Open Access Journals (Sweden)

C. H. Fouche

2008-01-01

Full Text Available The ongoing subprime mortgage crisis (SMC and implementation of Basel II Capital Accord regulation have resulted in issues related to bank valuation and profitability becoming more topical. Profit is a major indicator of financial crises for households, companies, and financial institutions. An SMC-related example of this is the U.S. bank, Wachovia Corp., which reported major losses in the first quarter of 2007 and eventually was bought by Citigroup in September 2008. A first objective of this paper is to value a bank subject to Basel II based on premiums for market, credit, and operational risk. In this case, we investigate the discrete-time dynamics of banking assets, capital, and profit when loan losses and macroeconomic conditions are explicitly considered. These models enable us to formulate an optimal bank valuation problem subject to cash flow, loan demand, financing, and balance sheet constraints. The main achievement of this paper is bank value maximization via optimal choices of loan rate and supply which leads to maximal deposits, provisions for deposit withdrawals, and bank profitability. The aforementioned loan rates and capital provide connections with the SMC. Finally, OECD data confirms that loan loss provisioning and profitability are strongly correlated with the business cycle.