Annual Interest Research Articles

Sustained credit card borrowing

AbstractUsing a large panel of credit card accounts, we examine the dynamics of credit card borrowing and repayment in the United States and what these imply for the expected costs of credit card debt to consumers. Our analysis reveals that: (a) credit cards are predominantly used to borrow, (b) card debt is sustained for long periods and balances frequently rise before being repaid, and (c) this debt is potentially more costly than anticipated. Specifically, we document that 82% of outstanding balances are debt and that 70% of this debt accrues to those borrowing continuously for a year or more. The expected annualized cost of an episode of continuous borrowing is 28% of its initial balance, or 13 percentage points. higher than the average annual percentage rate. Moreover, credit scores decline during episodes, further raising the expected cost of borrowing on a card.

Research on Credit Strategy of Small and Medium Enterprises Based on Subjective and Objective Comprehensive Evaluation

In order to study the adjustment of national policies on medium, small and micro enterprises, and to determine the credit risk and credit strategy of banks to medium, small and micro enterprises. Firstly, the enterprise strength and comprehensive reputation of small and micro enterprises are analyzed, and their weight is determined by the subjective and objective comprehensive evaluation method, and the credit risk factors of each enterprise are calculated. A dual objective optimization model was established and solved by simulated annealing algorithm. The optimal profit amount and annual average interest rate of banks for different industries and different categories of credit strategy are obtained. Analytic Hierarchy process and Fuzzy Bayesian network are used to explore the influence of multiple emergent factors on banks adjustment credit strategy.

Borrow low, lend high: Credit arbitrage by sophisticated investors

We document that some investors arbitrage by borrowing and lending at the same time on Renrendai, one of the largest peer-to-peer lending platforms in China. They borrow at an annual interest rate of 7.31% and lend at 12.53% to earn the spread. Compared with non-arbitrageurs, arbitrageurs have larger portfolios and they diversify default risk by lending smaller amounts to many borrowers. Moreover, arbitrageurs are able to identify quality loans with lower risk and higher return, and thereby earn 1.19% higher risk-adjusted return than non-arbitrageurs do. As a result, 706 arbitrageurs earn 1.5 million yuan in 3 years. However, unsuccessful investments Granger cause some arbitrageurs to default, suggesting that arbitrageurs may increase platform risk. After the platform employ big data and reform the loan pricing mechanism from borrower-determined to platform-determined, loan interest rate decreases from 12.49% to 10.15%, and arbitrage phenomenon no longer exists. These findings suggest that arbitrageurs are highly sophisticated investors who make profits by utilizing financial leverage, diversifying credit risk, and identifying quality loans. Meanwhile, regulators should closely monitor arbitrage behaviors and constantly evaluate their consequences.

Techno-economic and environmental analysis of biomass-based hybrid energy systems: A case study of a Western Himalayan state in India

India has a profuse reserve of renewables to contribute to energy sectors. In this study, a techno-economic and environmental analysis are carried out for an off-grid hybrid system as a case study in the western Himalayan region. Seven different hybrid systems with and without battery storage are simulated. The PV/Biomass gasifier/Battery based hybrid energy system is found to be the optimal configuration with the least cost of energy $0.185/kWh at an estimated total net present cost $76080 with 59% biomass and 41% PV contribution. A saving of 27.8 Mt CO2/year (equated to the diesel-only system) is predicted. Finally, sensitivity analysis is performed for critical parameter identification. Five (Solar radiation, biomass price, annual interest rate, biomass gasifier lifetime, and annual capacity shortage) out of nine sensitivity parameters is found to be critical. The outcome of the study is of importance to designers, researchers, policymakers on the latest design constraints and relevant policies for biomass-based hybrid systems.

Rehabilitación sustentable de vivienda barrial masiva en clima semi-árido: Evaluación termo-energética y microeconómica

Se presenta el análisis de la factibilidad técnico-económica de rehabilitación edilicia de la envolvente en una tipología de vivienda barrial masiva existente en San Juan, Argentina, ciudad oasis con clima semi-árido. A tal fin se proponen variantes tecnológicas pasivas que mejoran su desempeño térmico-energético y se desarrollan procedimientos adaptados a la disponibilidad de datos locales, que abarcan aspectos climáticos, termo-energéticos y económicos en el ámbito edilicio. Las ocho alternativas de mejoras propuestas permiten ahorros en consumos de climatización que varían entre 33% y 56%, para inversiones iniciales entre € 2,582.00 y € 4,186.00 a precios de setiembre de 2019, capital que se recupera entre 6.8 y 11 años, en un ciclo de vida de 25 años con una tasa constante de interés anual de 3%. La metodología propuesta es apta para decidir políticas en el tema destinadas a viviendas sociales, y constituye una sólida base para implementar planes de promoción.

Harnessing wind energy on merchant ships: case study Flettner rotors onboard bulk carriers.

Shipping faces challenges of reducing the dependence on fossil fuels to align with the international regulations of ship emissions reduction. The maritime industry is in urgent need of searching about alternative energy sources for ships. This paper highlights the applicability of harnessing wind power for ships. Flettner rotors as a clean propulsion technology for commercial ships are introduced. As a case study, one of the bulk carrier ships operating between Damietta port in Egypt and Dunkirk port in France has been investigated. The results showed the high influence of the interaction between ship course and wind speed and direction on the net output power of Flettner rotors. The average net output power for each rotor will be 384 kW/h. Economically, the results reveal that the use of Flettner rotors will contribute to considerable savings, up to 22.28% of the annual ship’s fuel consumption. The pay-back period of the proposed concept will be 6 years with a considerable value of levelized cost of energy. Environmentally, NOx and CO2 emissions will be reduced by 270.4 and 9272 ton/year with cost-effectiveness of $1912 and $55.8/ton, respectively, at annual interest rate of 10%.

Innovation of China's Supply Chain Financing Process : Case of JingDong's New Financing Process

China's supply chain finance (SCF) is a huge market, and many Internet Finance Companies (IFCs) are willing to provide financing for small and medium-sized enterprises (SMEs) to improve business relationships and economic benefits. However, many risks are associated with financing. Innovations are introduced in China's supply chain financing to reduce the risks. Many companies used Big data, Blockchain, Internet of Things (IoT), and other new technologies to facilitate innovation, tap resources, and improve production. This study takes Jingdong's (JD's) new financing process to understand innovation financing in China. Through analysis of JingBaoBei, JingXiaoDai, and YunCangJingRong financing processes, we discuss the JD's new supply chain financing based on funding sources, mode of operation, financing quota, audit time, funding speed, and annual interest rate.

Revolving cards: A financial analysis of the credit repayment and legal implications

The framework of this paper is credit card holding by users and consumers, more specifically, the so-called revolving cards. In most cases, the true interest rate applied to a credit is much higher than its nominal interest rate. Usually, this is due to the existence of some fees to be paid by the holder, and to the process of splitting the periods of interest. However, the contracted annual interest rate of revolving cards is very high which, together with the peculiar amortization system, gives rise to an excessive amount of interests. The objective of this paper is to describe and analyze, from a legal and financial point of view, the main characteristics of the credit repayment in revolving cards. We conclude that the complete amortization of the principal needs a long duration and the payment of a high amount of interests.

The Network Structure of the Forestry Research as a Scientific Field in Turkey between 1999 and 2019

This study aims to analyse and map the network structure of the scholarly communications in the realm of forestry research between 1999 and 2019 in Turkey using bibliometric analysis and social network analysis methods of the articles published within Clarivate Analytics’ Web of Science (WoS). A total of 8689 records, including their bibliographic data, were extracted from WoS. The analysis of each sub-period shows that the number of international collaboration of Turkish authors has increased globally from 23 countries in the first sub-period to 113 countries in the last sub-period within forestry publications. Also, the annual percentage rate of publications has increased from 58 articles in 1999 to 1016 in 2019 in the realm of forestry alongside with their received average citations in each sub-period. Multi-author articles precede single-author articles in the field of forestry in each sub-period. This research is the first analysis of forest research production using bibliometric and network analysis in Turkey. According to the results biomass, remote sensing and climate change were current trends on forest research in Turkey. Incidentally, the research findings can be used by policymakers regarding future investments in forestry research development.

Revolving cards: A financial analysis of the credit repayment and legal implications

The framework of this paper is credit card holding by users and consumers, more specifically, the so-called revolving cards. In most cases, the true interest rate applied to a credit is much higher than its nominal interest rate. Usually, this is due to the existence of some fees to be paid by the holder, and to the process of splitting the periods of interest. However, the contracted annual interest rate of revolving cards is very high which, together with the peculiar amortization system, gives rise to an excessive amount of interests. The objective of this paper is to describe and analyze, from a legal and financial point of view, the main characteristics of the credit repayment in revolving cards. We conclude that the complete amortization of the principal needs a long duration and the payment of a high amount of interests.

Prevalence of malnutrition and its associated sociodemographic and clinical factors among adolescents in selected schools of Urban Puducherry, India.

In India, adolescents constitute 21% of the total population. Majority of boys and girls in developing countries enter adolescence as undernourished, making them more vulnerable to several diseases. Among adolescents in selected schools of urban Puducherry, we determined the prevalence of malnutrition and also assessed the sociodemographic and clinical factors associated with undernutrition. A cross-sectional analytical study was conducted among adolescents (10-18 years) in selected public schools of Urban Puducherry. Data were collected using semi-structured and pre-tested questionnaires. The data collection period was between September and October 2019. Malnutrition was assessed by the World Health Organisation recommended Height-for-age and body mass index-for-age cut-offs using AnthroPlus software. A total of 144 (28.9%) boys and 355 (71.1%) girls were included in the study (N = 499). The prevalence of malnutrition was 46.8% (95% confidence interval [CI]: 42.5-51.3). The prevalence of undernutrition was 33.3% (Stunting [21.6%] and Thinness [15%]). The prevalence of overweight and obesity were 10.2% and 5.8%, respectively. Male gender was found to be an independent risk factor of undernutrition (annual percentage rate = 1.4; 95% CI: 1.0-1.9); and known risk factors such as socio-economic status, parental education were not significantly associated with undernutrition. One in every two school-going adolescents was malnourished. Despite the high prevalence of undernourishment, over nourishment was also commonly observed. Educating parents and students about growth monitoring and dietary habits might help in bringing down the burden of malnutrition.

Reliability Evaluation and Financial Viability of an Electricity Power Micro-Grid System With the Incorporation of Renewable Energy Sources and Energy Storage: Case Study of KwaZulu-Natal, South Africa

The increase in the demand for a reliable electricity supply by the utilities and consumers has necessitated the evaluation of the reliability of power systems. A reliable electricity supply is characterized by no or minimal duration and frequency of supply outages. This has triggered the necessity of using renewable energy sources (RESs) with optimization methods for reliability improvement of electricity systems and reduction of greenhouse gas (GHG) emissions. The main objective of this study is to optimize micro-grid systems operations, improve reliability, reduce emissions and balance the demand and supply of energy through RESs and battery energy storage system (BESS). The adaptive model predictive control (AMPC) method is used to address the issues of micro-grid operation. The AMPC algorithm solves the optimization problem of disturbance prediction in a micro-grid with different types of RESs and BESS integration. This optimization problem considers different constraints for minimum operating costs in different case scenarios. The financial viability of the proposed method is investigated. Solar photovoltaic (Solar PV), wind plant (WP) and BESSs are used with the AMPC method to investigate the impacts of annual real interest rates on cost and emission parameters, quantification of the emission oxides from different case scenarios, reduction of the cost of electricity (Ccoe), and power system reliability improvement. A modified Roy Billinton Test System (RBTS) is used to confirm the reliability enhancement and financial feasibility of the system. Case studies are used to confirm the proposed methods using climatic data for the city of Pietermaritzburg (29.37°S and 30.23°E), South Africa. The results obtained establish that the incorporation of RESs and BESSs using the AMPC method gives satisfactory outcomes.

Mortgage Loans and Impacts of the Global Pandemic COVID-19 in the Globalized Society

Research background: The paper is focused on the financial product, esp. on mortgage loans that are often used products in the field of long-term financing in the Czech Republic. These products provide commercial banks and other financial institutions on the Czech globalized financial market. Purpose of the article: The aim of the paper is to analyze the situation on the globalized financial market focused on the mortgage loans and loans from building societies in view of the global Covid-19 pandemic. Methods: Firstly a theoretical background with a review of the literature is provided, then research methodology is described, the key part brings results of development of mortgage loans, development of interest rates and the analysis of the current situation on the mortgage loan market with estimation of future development. The last part is focused on the comparison of selected mortgage loans provided by five financial institution. The article is based on primary and secondary sources. A detailed research together with the analysis and critical assessment of accessible materials will enable to identify the main objectives in the field of study. Findings & Value added: Interest rates on mortgage loans have on the Czech market downward trend in the last years. The best conditions scored in 2019 loan from building society Modrá pyramida. The overall situation in 2020 cause lower interest rates in the mortgage loans. Lower annual percentage rate of charge and smaller monthly mortgage loan repayment and the total overpayment also correspond.

Rising temperatures, falling ratings: The effect of climate change on sovereign creditworthiness

Enthusiasm for ‘greening the financial system’ is welcome, but a fundamental challenge remains: financial decision makers lack the necessary information. It is not enough to know that climate change is bad. Markets need credible, digestible information on how climate change translates into material risks. To bridge the gap between climate science and real-world financial indicators, we simulate the effect of climate change on sovereign credit ratings for 108 countries, creating the world’s first climate-adjusted sovereign credit rating. Under various warming scenarios, we find evidence of climate-induced sovereign downgrades as early as 2030, increasing in intensity and across more countries over the century. We find strong evidence that stringent climate policy consistent with limiting warming to below 2°C, honouring the Paris Climate Agreement, and following RCP 2.6 could nearly eliminate the effect of climate change on ratings. In contrast, under higher emissions scenarios (i.e., RCP 8.5), 63 sovereigns experience climate-induced downgrades by 2030, with an average reduction of 1.02 notches, rising to 80 sovereigns facing an average downgrade of 2.48 notches by 2100. We calculate the effect of climate-induced sovereign downgrades on the cost of corporate and sovereign debt. Across the sample, climate change could increase the annual interest payments on sovereign debt by US$ 22–33 billion under RCP 2.6, rising to US$ 137–205 billion under RCP 8.5. The additional cost to corporates is US$ 7.2–12.6 billion under RCP 2.6, and US$ 35.8–62.6 billion under RCP 8.5.

МІКРОКРЕДИТУВАННЯ ЯК ІНСТРУМЕНТ РОЗВИТКУ ФІНАНСОВИХ ПОСЛУГ ДЛЯ МАЛОЗАБЕЗПЕЧЕНИХ ВЕРСТВ НАСЕЛЕННЯ

In the current coronavirus crisis, there is an exacerbation of economic and social problems that provoke a deterioration of the situation in a country with poverty. In such circumstances, the poor are particularly vulnerable, whose income for survival and so below the subsistence level. The loss of even a small source of income can lead to negative consequences. In such conditions, the task of the state is to adapt social policy to such changes, taking into account the capabilities of the financial sector. One of the rather new for Ukraine, but already popular tools for the development of financial services and financial inclusion for such a social group is microcredit. This article is devoted to his research, which provides a theoretical analysis of the nature and main features of microcredit, their main representatives (microfinance organizations and their brands) in Ukraine and their financial characteristics. In essence, this is a type of consumer loan that is provided for a relatively short period (up to one month) at a fairly high interest rate (average 2%) per day in the amount of less than one minimum wage. At the same time, there is a growing popularity of remote (online) service, which involves minimal time and does not require many documents from customers. The main providers of such services are microfinance organizations, whose presence are constantly growing in the market and are characterized by diversified activities – sometimes represented by several brands. A study of the top 10 leaders showed fluctuations in daily and annual interest rates, and a study of their net income – the profitability of this type of business over the past two years. In this regard, there is a need to increase attention to their activities by the main regulator – the National Bank of Ukraine. Despite existing measures to increase consumer protection in the process of obtaining microcredit services and prohibiting unethical actions of collectors through debt collection, it is recommended to develop a system for identifying and preventing credit risks to prevent future financial losses and intensify information campaign to increase financial literacy of the poor.

Horos from Naxos with Pupillary apotimema

The horos was reported to Hiller von Gaertringer in June 1930 by Franz Gabriel Welter, engaged in excavations during the 1920s in the areas of Hyria and Livadi (Naxos). The document is remarkable for the definition of the concept of apotimema, the estimated value of properties given as security for the lease of property of a subject protected by the eponymous archon (orphans, widows and epikleroi). In this specific case, we have a pupillary apotimema: lands and the house, with the tiled roof, valued and placed as apotimema for the goods capitalised by the epitropos of Epiphron’s children. The capital loaned is 3,500 drachmas and the children would have obtained 400 drachmas as annual interest. Among the land pledged to guarantee the sum, the possessions in the localities of Elaious and Melanes are also mentioned, the latter’s toponym still in use for the village that is located in the north-central area of the island of Nassia.

Horos from Naxos with Pupillary apotimema

The horos was reported to Hiller von Gaertringer in June 1930 by Franz Gabriel Welter, engaged in excavations during the 1920s in the areas of Hyria and Livadi (Naxos). The document is remarkable for the definition of the concept of apotimema, the estimated value of properties given as security for the lease of property of a subject protected by the eponymous archon (orphans, widows and epikleroi). In this specific case, we have a pupillary apotimema: lands and the house, with the tiled roof, valued and placed as apotimema for the goods capitalised by the epitropos of Epiphron’s children. The capital loaned is 3,500 drachmas and the children would have obtained 400 drachmas as annual interest. Among the land pledged to guarantee the sum, the possessions in the localities of Elaious and Melanes are also mentioned, the latter’s toponym still in use for the village that is located in the north-central area of the island of Nassia.

A System to Support the Transparency of Consumer Credit Offers

The development of financial markets and the low level of financial literacy does not facilitate consumer protection. A significant problem is the lack of information or unclear information regarding financial offers, including consumer credit. Financial protection for consumers can be increased by using systems that support consumers faced with a lack of transparency of consumer credit offers. The theoretical objective of the research is to identify the completeness of information allowing for verifying the annual percentage rate (APR) in the consumer credit offers presented and compared on websites of financial intermediaries and banks as well as the identify of APR calculation methods. After analysis of different credit offers (document analysis), a prototype of the system regarding credit costs measured at the appropriate interest rates (APR and AER) calculated in the correct manner was created. This may facilitate practices for informing consumers about the characteristics of consumer credit and at the same time support the implementation of the concept of responsible lending. The system developed uses a computer to simulate human thinking and to augment it with artificial intelligence. It facilitates the elimination the behavioral biases during the taking of financial decisions, which are the result of a low level of financial literacy.

The effect of fair valuation on banks' earnings quality: empirical evidence from developed and emerging European countries

This study investigates average earnings quality (AEQ) and its determinants in the European banking sector based on data of 409 European banks from the period 2006–2018. We utilize the intensity of fair valuation, average annual interest change, and firm size as explanatory variables for AEQ, with special attention to differences between developed and emerging countries. We split the total time period into a pre-IFRS 13 and a post-IFRS 13 period to examine how the renewed regulation of fair valuation (IFRS 13) has affected the earnings quality of banks. We find that, while the interest change observed in the total period and the banks' size significantly and negatively affect AEQ, the proportion of fair value assets has a significant positive effect. We show that the latter is only valid for developed countries. We find clear evidence that the introduction of IFRS 13 resulted in a measurable improvement in fair value regulation.

PSXI-13 Effect of performance indicators, food expenses and interest rate on lamb production cost

Abstract This study aimed at comparing the influence of zootechnical performance and main cost items over the total production cost of lambs. A representative production system of São José do Rio Preto region, Brazil, designed in a panel meeting, was used as a study basis. We calculated lamb production costs, including variable costs, fixed costs, and income of factors, using the data from December 2019. We then estimated elasticities for the variables: feed expense, interest rate, carcass yield, lamb survival rate, and fertility rate. This way we compared the variation in total cost per year and per carcass caused by increases of 1% in each of the considered variables. In the base scenario, production costs per year and unit were, respectively, US$ 33,367.34 and US$ 4.81. Feed expenses, annual interest rate, mean carcass yield, lamb survival rate, and fertility rate were, respectively, US$ 22,316.74, 4.50%, 48.00%, 88.00%, and 85.00%. Regarding annual cost, changing each variable caused variations of +0.67%, +0.05%, 0.00%, +0.33% and +0.33%. Concerning cost per unit, the variations were +0.76%, +0.07%, -0.98%, -0.61% and -0.64%, respectively. Increasing lamb survival and fertility rates were also effective strategies to lower unitary cost. The cost component with feed represented 66.88% of the total production cost, but measures to reduce feed costs must be well conducted to not affect the zootechnical performance of the animals. Farmers must consider cost per unit when thinking about lowering production costs, instead of the annual cost. Increasing lamb carcass yield had a greater impact on reducing unitary cost than cutting feed expenses. Improving performance indicators demand good nutritional status for lambs and ewes, and cutting off feed expenses may have deleterious effects on animal performance, therefore increasing cost. Elasticity analysis is a useful tool to calculate such trade-offs at the farm level.