Average Bank Research Articles

Do intellectual capital and financing matter for the profitability of the Islamic banking industry in Indonesia

In Indonesia, the Islamic banking industry has been experiencing growth since its establishment in 1992. Although its profitability has declined slightly due to Covid-19, Islamic banks have recorded higher profitability than the average banking industry nationwide. Motivated to identify the factors that determine the banking profitability, this research empirically tests the contribution of intellectual capital (measured by VAICTM), banks' liquidity (financing-to-deposit ratio), and financing ineffectiveness (non-performing financing or NPF) to the profitability (return on assets or ROA) of Islamic banks in Indonesia. We gathered data from the published financial information comprising a total of 130 observation years. The result shows that intellectual capital, banks' liquidity, and financing ineffectiveness impacted the profitability of Islamic banks in Indonesia. The findings of this study provide policy implications for Indonesia's Islamic banks to apply prudential banking principles in their financing activities.

ТЕОРЕТИЧЕСКИЕ АСПЕКТЫ СОВЕРШЕНСТВОВАНИЯ МОДЕЛИРОВАНИЯ КРЕДИТНОГО СКОРИНГА В ДЕЯТЕЛЬНОСТИ КОММЕРЧЕСКИХ БАНКОВСКИХ УЧРЕЖДЕНИЙ

The article analyzes the activities of Home Credit and Finance Bank LLC and concludes that the bank is profitable, profitability is kept approximately at the average bank level. In the course of the study there are factors preventing effective lending to individuals by the bank: the low level of income of the population, which results in low solvency of citizens; the lack of a mechanism for influencing the processes of non-repayment of the loan and risk calculation; the lack of a wellcoordinated system of classification of borrowers form the problem of reducing the repayment of the loan product by this borrower in compulsory all right. As a consequence, one of the directions for eliminating the above factors and achieving effective lending to individuals for the bank of Home Credit and Finance Bank LLC is the introduction and implementation of digital technologies and solutions. In this context, it is proposed to introduce a data-based credit scoring model into the activities of Home Credit and Finance Bank LLC. The credit scoring model contains numerical tools for ranking order cases using data integrated into a single quantity that attempts to measure risk or creditworthiness. Credit scoring is a complex discipline that requires special resources, including personnel with special knowledge and favorable infrastructure. Specialized expertise can be internal or outsourced. If the data management infrastructure has not yet been created, it must be purchased. Credit scoring can also require significant organizational changes. Thus, Home Credit and Finance Bank LLC needs infrastructure and resources to provide operational support for the new credit scoring service and to implement its plan to enter the market. As the effectiveness of the implementation of the model increases, it will be possible to scale it in all regions.

Exploring Local Riverbank Sediment Controls on the Occurrence of Preferential Groundwater Discharge Points

Groundwater discharge to rivers takes many forms, including preferential groundwater discharge points (PDPs) along riverbanks that are exposed at low flows, with multi-scale impacts on aquatic habitat and water quality. The physical controls on the spatial distribution of PDPs along riverbanks are not well-defined, rendering their prediction and representation in models challenging. To investigate the local riverbank sediment controls on PDP occurrence, we tested drone-based and handheld thermal infrared to efficiently map PDP locations along two mainstem rivers. Early in the study, we found drone imaging was better suited to locating tributary and stormwater inflows, which created relatively large water surface thermal anomalies in winter, compared to PDPs that often occurred at the sub-meter scale and beneath riparian tree canopy. Therefore, we primarily used handheld thermal infrared imaging from watercraft to map PDPs and larger seepage faces along 12-km of the fifth-order Housatonic River in Massachusetts, USA and 26-km of the Farmington River in Connecticut, USA. Overall, we mapped 31 riverbank PDPs along the Housatonic reach that meanders through lower permeability soils, and 104 PDPs along the Farmington reach that cuts through sandier sediments. Riverbank soil parameters extracted at PDP locations from the Soil Survey Geographic (SSURGO) database did not differ substantially from average bank soils along either reach, although the Farmington riverbank soils were on average 5× more permeable than Housatonic riverbank soils, likely contributing to the higher observed prevalence of PDPs. Dissolved oxygen measured in discharge water at these same PDPs varied widely, but showed no relation to measured sand, clay, or organic matter content in surficial soils indicating a lack of substantial near-surface aerobic reaction. The PDP locations were investigated for the presence of secondary bank structures, and commonly co-occurred with riparian tree root masses indicating the importance of localized physical controls on the spatial distribution of riverbank PDPs.

ANALISIS KINERJA KEUANGAN PERBANKAN SYARIAH INDONESIA PADA MASA PANDEMI COVID-19

Financial sector is an important thing for a country development. Indirectly, the financial sector will support the economy especially during the pandemic, including the Islamic banking industry. This study aims to analyze the financial performance of Islamic banking in Indonesia based on profitability ratios consisting of BOPO, ROA, ROE, liquidity ratios consisting of Cash ratio and FDR, as well as solvency ratios as measured by the CAR ratio, during the COVID-19 pandemic. This research is descriptive quantitative research by measuring the financial performance of the bank through the level of profitability ratios. The results of this study show that there is a fluctuation changing in the performance values during the COVID-19 pandemic. Bank performance through profitability ratios shows that some sharia banks are classified as efficient and some have decreased the performance. In the liquidity ratio, the average bank experienced a decline in the cash ratio component, with the lowest being at BRI Syariah, which fell by 50.9%. Bank solvency ratio generally shows good performance.

A low-cost subsurface drainage technique to enhance gully bank stability in the sub-humid highlands of Ethiopia

Abstract Gully erosion is the leading cause of elevated sediment yields in the world. Few low-cost techniques are available for rehabilitating gullies. The objective of this research was to evaluate the applicability of a low-cost horizontal sub-surface drainage system for decreasing gully erosion by stabilizing gully banks. The study was conducted in the sub-humid Ethiopian highlands in two active gullies, one in a Vertisol and another in a Nitisol. One bank was drained with a plastic pipe, and the other bank acted as the control. The two opposite banks are hydrologically isolated from one another. The surrounding groundwater tables were continuously monitored for two years. Over two wet seasons, the average bank retreat in the Vertisol gully was 0.62 m for the control and 0.15 m for the drained bank. Similarly, in the Nitisol gully, in 1.1 m for the control and 0.29 m for the drained bank. The average groundwater table of the drained bank was 20% lower than the non-drained banks during the monitoring periods. These results suggest that bank dewatering maintained higher levels of stability of gully banks and promoted lower rates of bank retreat on both soil types. The initial cost of the dewatering treatments was significantly less than the conventional bank stabilization measures. Bank dewatering could be one of the technologies for gully rehabilitation. Gully management techniques in Ethiopia and elsewhere could benefit from integrating bank drainage with other physical and biological protective measures.

Retail Investment Financing Via Remote Digital Computer Algorithm

Introduction: in the paper, the author examines the activities of the Russian legislators on the formation of the legal regulation of the investment segment of the economy in order to identify their mistakes and shortcomings, as well as to justify the recommendations for fixing viable legal structures in the legislation. Such legitimate structures could be used by a wide range of individual investors-individuals – as part of their decision to diversify monetary investments in order to increase household savings for a period of 1 year or more. Methodology: the digital computer algorithms of inter-network interaction for placement and attraction of investments, their speed and independence from distance are perceived by entrepreneurs with great hope for success and attract more and more attention from investors. According to the author of the paper, by 2024, the financial digital technologies can replace up to 38% of traditional banking and payment transactions, up to 32% of insurance transactions, transactions for financing foreign trade transactions, and transactions for asset management. Based on the materialist worldview, the universal method of historical materialism, the author used the general scientific and specific scientific methods for the study, which made it possible to implement a systematic approach to the subject of research. The general scientific methods of cognition are applied: the dialectical, hypothetical-deductive methods, generalization, induction and deduction, analysis and synthesis, empirical description. The research also uses the specific scientific methods: dogmatic, comparative-legal, hermeneutic, structural-functional, etc. The scientific development of the material is carried out on the basis of a set of normative and doctrinal sources. The paper uses the federal laws and other normative acts of the Russian Federation. Federal Law No. 259-FZ of August 2, 2019 “On Attracting Investments Using Investment Platforms and on Amendments to Certain Legislative Acts of the Russian Federation”, Draft Federal Law No. 419090-7 “On Alternative Methods of Attracting Investments (Crowdfunding)”, and certain provisions of the Civil Code of the Russian Federation were studied. Draft Law No. 419059-7 “On Digital Financial Assets” of March 20, 2018, and Federal Law No. 34-FZ of March 18, 2019 “On Amendments to Parts One, Two, and Article 1124 of Part Three of the Civil Code of the Russian Federation” were critically analyzed. The doctrinal sources are represented by the scientific publications of the Russian legal scholars and economists, including: A.O. Inshakova, A.E. Kalinina, A.I. Goncharov, M.V. Goncharova, O.P. Kazachenok, E.E. Frolova, etc. Results: the Internet investing provides an opportunity to obtain funding for the implementation of a publicly announced project relatively quickly and without bureaucratization. The absence of the geographical and distance restrictions is a special advantage of investing on the Internet platforms, compared to other tools for raising capital from a wide range of investors, including individuals. This remote Internet algorithm for retail investment financing allows you to attract capital at a price that corresponds to the profitability of projects and, as a rule, is lower than the average bank interest rate for a loan. Conclusions: the conclusions and assessments on the content of the new Russian legislation are formulated. Based on the critical analysis of the scientific works of the economists and lawyers, the authors formulate the definitions of a special algorithm for remote investments from a wide range of subjects, as well as the tools for remote interaction of investors and investment organizers in the Internet space of modern Russia.

Macroeconomic factors that influence the bank loans rate in international and Ukrainian practice

The goal of the paper is to disclose the links between the dynamics of macroeconomic indicators and the level of bank loan rates based on international and Ukrainian practice. On the basis of the previous analysis, the paper also aims to identify the key trends in the formation of loan prices in the long run and identify problematic issues related to bank loan rates. The main characteristics of bank lending rates in Ukraine are: a) their high rates; b) sharp changes in the weighted average bank loan rates from year to year; c) higher loan rates for households compared to the cost of bank loans for businesses; d) higher bank loan rates for short- and medium-term loans versus long-term ones; e) lower rates on loans in foreign currency compared to the loans in hryvnia; and f) high share of non-performing loans to households and businesses in bank portfolios. In the context of world and Ukrainian practice, the paper demonstrates the reverse effect between macroeconomic indicators such as GDP per capita, the ratio of loans to GDP, the ease of doing business index and bank loan rates. The article also demonstrates a direct relationship between the dynamics of inflation rate in the country, the dynamics of non-performing bank loans and their rates.

Bank Ownership Types and Liquidity Creation: Evidence from Ghana

ABSTRACT In this study, we examine bank liquidity creation and the effect of ownership types on liquidity creation in Ghana for the first time. The study employs data on 26 banks obtained from Bank of Ghana between 2006 and 2016. Three panel estimation strategies including two-step GMM, Hausman-Taylor and Fixed effect models are employed to arrive at the findings. Employing the narrow liquidity creation computation approach, the results show that average bank liquidity created within the 11-year period consistently increased over the period and reported the highest liquidity created in 2016. Interestingly, when considering bank ownership types, listed, state-owned and foreign-owned banks report the highest average liquidity created compared to their unlisted, privately owned and locally owned counterparts, respectively. Employing regression models, the study finds that foreign and privately owned banks are less likely to create more liquidity compared to their locally and state-owned bank counterparts implying that state-owned and locally owned (domestic) banks create more liquidity. These results imply that while there is much room for creating more liquidity, policymakers may hasten liquidity creation through locally and state-owned banks and at the same time designing policies that entice foreign and privately owned banks to create more liquidity which is good for economic growth.

Risk-adjusted banks' resource-utilization and investment efficiencies: does intellectual capital matter?

PurposeThe purpose of this study is twofold. First, this research estimates banks' efficiencies from the perspectives of resource utilization and investment after incorporating risk measures as an exogenous input in the investment-efficiency stage. Second, the current study examines the relationship between intellectual capital (IC) and banks' efficiencies.Design/methodology/approachFirst, this study uses a dynamic network data envelopment analysis approach in investigating the efficiencies of 24 Taiwanese banks in 2007–2018 from two perspectives. Second, this research utilizes various regression techniques, namely, ordinary least squares (OLS), robust least squares and truncated regression, to gauge the impact of IC on banks' efficiencies. Typically, IC is determined based on a monetary value-based measure and value-added intellectual coefficient (VAICTM).FindingsResource-utilization (investment) efficiencies were observed as 0.941 (0.964), thereby contributing to the mean overall efficiency of the sample banks at 0.952. However, the related efficiency changes decline over the sample period, thereby suggesting that the average banks' efficiencies hardly increase. Regression analyses show a significantly positive relationship between IC and banks' overall resource-utilization and investment efficiencies.Research limitations/implicationsOverall, this study suggests that researchers should consider risks when estimating banks' efficiencies owing to their connection to banks' investment performance. From banks' dynamic two-stage efficiencies, this study demonstrated that investments in IC will bring improved future economic benefits.Originality/valueDifferent from prior studies, this study improves banks' efficiency evaluation models by incorporating risk measures and assuming weighted periods for the 2007–2008 global financial crisis. Moreover, the use of monetary value-based measure of IC provides consistent results as the commonly-used VAICTM does.

DIVIDEND POLICY, PROFITABILITY AND CAPITAL TOWARDS BANKING VALUE

ABSTRACTResearch purpose – This study aims to test the influence of dividend policy, profitability, and capital on banking value. This research was conducted on banking financial sector companies included in the Indonesia Stock Exchange LQ45 index for the period 2015-2019. Methods – Samples were selected using a non-probability sampling method with purposive sampling. Data analysis with multiple linear regression techniques. Result – The results showed that dividend policy has no significant influence on the value of the company. Banking profitability also has no influence on the value of the company. Meanwhile, banking capital has a positive and significant influence on the company's value. The success of the company depends largely on the company's ability to raise capital, because insufficient capital will hinder the development of the company. Banking capital that continues to increase above the average banking standard shows the ability of banking capital is very good, this means that the ability of existing capital in the banking system is able to cover possible losses in credit activities and trading of banking securities. Limitations of research - There are two proxies, dividend policy and profitability policies that have not given evidence of the company's value and the small value of R2 is the material for further research. Originality - This study discusses the function of financial management as measured by financial decisions, and discussions on banks listed in LQ45 with variable testing separately.

What can commercial property performance reveal about bank valuations?

We test whether commercial property performance, proxied by real estate investment trust (REIT) prices, can inform us about bank equity prices. Using data from the United States, the euro area and Japan, we show that REIT prices can predict bank equity prices. Furthermore, a “commercial property factor” adds significant explanatory power to both the CAPM and the 3-factor Fama-French model. At the same time, quantile regressions show that this factor becomes particularly prominent during downturns. It accounts for around half of the drop in average bank valuations during the great financial crisis and, again, during the Covid-19 pandemic.

What Can Commercial Property Performance Reveal about Bank Valuations?

We test whether commercial property performance, proxied by real estate investment trust (REIT) prices, can inform us about bank equity prices. Using data from the United States, the euro area and Japan, we show that REIT prices can predict bank equity prices. Furthermore, a “commercial property factor” adds significant explanatory power to both the CAPM and the 3-factor Fama-French model. At the same time, quantile regressions show that this factor becomes particularly prominent during downturns. It accounts for around half of the drop in average bank valuations during the great financial crisis and, again, during the COVID-19 pandemic.

MANAGING STRESS IN A RECESSED ECONOMY: IMPLICATIONS FOR BANK EMPLOYEES

This study examines the notion of stress management in a recessed Nigerian economy with the implications for bank employees. In the process, it further considers the stiff competition in the banking sector coupled with the current sharp decline in the global price of crude oil with its attendant implications for the performance of the Nigerian economic growth which has a spillover effect on indwelt elements like stress factor facing the banking employee. Based on this foundational philosophy, 300 structured questionnaires were administered of which 218 were found usable and on which an in-depth analysis was conducted via the use of Statistical Package for Social Sciences’ (SPSS) data analysis; whilst Correlation and Regression analyses were applied to test the formulated hypotheses. The finding of the research effort affirms that stress issue in the workplace is of a growing concern particularly in the banking sub-sector. This development portends a detriment to the health and psychic of bank employees – and thus poses a great threat to work place performance. Further findings from the study; reveal amongst others; the potential stress-propelled debacle facing the bank employees in different dimensions. These include work overload, low level of job satisfaction (in spite of measurable remunerations and lack of autonomy–including job insecurity. The study recommends amongst others; that effective management of bank staffers require developing action plans by bank management that would entail monitoring, re-assessing (via feed-back mechanism) the dynamics of the internal workplace and the turbulent external environment. It concludes on the note that, where the optimum of an average bank employee is sought, the work environment should embrace his participation in decision making process at appropriate level of the affected organization. This is largely achievable through his engagement in state of the art training programs amongst other incentives.

Research on the Stability of the Banking System With Shadow Banking Under Macroeconomic Fluctuation

In recent years, shadow banking is considered to be one of the important factors that cause the financial crisis and destroy the stability of the banking system. However, in fact, macroeconomic fluctuations are closely related to the stability of the banking system. As an indispensable part of the decision-making of shadow banking, the shock of macroeconomic fluctuations plays a vital role as well. Therefore, based on the agent-based method in modern complex network theory, a model of a dynamic complex interbank network with shadow banking under macroeconomic fluctuations is proposed in this paper, in which the shock of macroeconomic fluctuations on the stability of the banking system with shadow banking and the effect of the shadow banking on the macroeconomic fluctuation are explored. The results show that in the boom, the liquidity of the banking system is expanded, the average bank profits are improved, the investment opportunities are increased, the survival bank ratio is high, and the systemic risk is low. The banking system stability is increased. While in the stable and the bust, the liquidity of the banking system is declined, average bank profits are shrunk, investment opportunities are gradually disappeared, and the survival bank ratio is decreased. The shadow banking starts collapsing, the systemic risk breaks out, and the banking system stability is seriously damaged. Furthermore, by analyzing the influence of shadow banking on the macroeconomic fluctuations, we find that shadow banking builds up the fragility of macroeconomic performance and without external regulation this impact is irreversible. This paper sheds light on the impact of macroeconomic fluctuation on the stability of the banking system with shadow banking, shows the risk problems brought by shadow banking for economic fluctuation, refines research of the banking system stability, and offers effective theoretical references for decision-makers and regulators.

Analisa Perpanjangan Restrukturisasi Kredit Terhadap Likuiditas Perbankan Sebelum dan Sesudah Pandemi Covid 19

Banking is a financial intermediary institution that collects funds from the public in the form of deposits and distributes them to the public in the form of credit or other forms. The very rapid spread of the Covid 19 outbreak resulted in disruptions to banking performance and financial system stability. Responding to this, the government made a credit relaxation policy through credit restructuring for debtors affected by Covid 19. This study aims to determine how the impact or effect of credit restructuring on banking liquidity before and after the Covid 19 pandemic. This study uses a comparative descriptive method with an assessment. quantitative, by collecting data to calculate liquidity ratios taken from financial reports that have been listed on the Indonesia Stock Exchange (IDX). Financial reports taken are the 3rd Quarter of 2019 before the pandemic appears and the 3rd Quarter of 2020 when the pandemic occurs. The results of this study indicate that from 10 samples of data obtained from financial reports by calculating the liquidity ratio, it shows that the average banking company still has the ability to fulfill its obligations during this pandemic, even though the credit restructuring is extended.

Mapping Sustainable Finance: A Detailed Analysis of Banks in Indonesia

This study aims to map the conformity of sustainability reports (SRs) for the BUKU 3 and BUKU 4 bank groups with regulations issued by the Indonesian Financial Services Authority (OJK). The research is exploratory, considering that FSA Regulation number 51 of 2017 was not applied until 2019. It represents a quantitative descriptive study employing a content analysis approach to explore and analyze data and factual input from SRs. The data used are drawn from the 2017 report concerning seven BUKU 3 banks and five BUKU 4 banks. This study found that the contents of the bank reports, with the components required by POJK number 51 of 2017, concerning the sustainable financial action plan and the SR, did not fully meet the requirements of the POJK. Using cross-tabulation analysis, we found that the average bank has a good, sustainable financial action plan and suitable sustainability reporting above 90%. It also has higher total assets, CAR/KPPM, ROA, and ROE ratios than banks with lower index suitability. This finding implies a potential relationship between SR compliance levels and bank financial characteristics. Overall, the conformity level of BUKU 4 banks is better than that of BUKU 3 banks.

Technology Diffusion: The Case of Internet Banking

Taking internet banking as an example, we study diffusion of cost-saving technological innovations. We show that the diffusion of internet banking follows an S-shaped logistic curve as it penetrates a log-logistic bank-size distribution. We test the theoretical hypothesis with an empirical study of internet banking diffusion among banks across fifty U.S. states. Using an instrument-variable approach, we estimate the positive effect of average bank size on internet banking diffusion. The empirical findings allow us to examine the technological, economic, and institutional factors governing the diffusion process and explain the variation in diffusion rates across geographic regions.

Pengukuran Risiko Sistemik di Negara-negara Berkembang ASIA-7

The research on systemic risk is important to carry out in view of the alleged repetition of the eight-year crisis cycle affecting the market. The data of average stock returns calculation in almost all sample countries was negative in 2011 and repeated again in 2019 that the average banking stock returns in Malaysia, Thailand, the Philippines, Pakistan, and Sri Lanka showed a negative value. Even since 2018, the Philippines, Pakistan and Sri Lanka have consistently been shown to experience negative average returns. Systemic risk measurement is done by two methods, namely ΔCoVaR and MES. Furthermore, this research is very supportive and has been in line with the research roadmap of Islamic University 45 which states that in 2018-2026 the academic research is more focused on the application of regional technology and social engineering models that instead the products in the form of policies to then develop international standard research. In this study, the sample of countries used covers the Asian region, the topic discussed is a very important issue in the financial sector considering that systemic risk cannot be eliminated. In general, there are three findings that are explained from the results of the ΔCoVaR calculation that: (a) most developing countries experienced a decrease in their contribution to systemic events after the 2008 global crisis period; (b) large banks make the biggest contribution to systemic events, except for banks in Malaysia both small and large banks make equal contributions to systemic events; (c) There is a potential for systemic event to increase after 2019 that the contribution to systemic events by individual banks in the Philippines, Indonesia, Sri Lanka show an upward trend in the past year so that risk mitigation measures need to be taken in the form of policies and analysis of banking financial performance and global economic conditions. Based on the overall MES calculation the bank contributes more than 50% of potential systemic events to the system.

Local Public Corruption and Bank Lending Activity in the United States

Using a conviction-based measure, we find that local (state-level) public corruption exerts a negative effect on the lending activity of US banks. Our baseline estimations show that the difference in public corruption between, for example, Alabama, where corruption is high, and Minnesota, where corruption is low, implies that banks headquartered in the former state grant 0.55% less credit (or $3.52 million for the average bank) ceteris paribus. Using proxies for relationship lending and monitoring, we also find that these bank characteristics weaken the negative effect of public corruption on lending. These results are robust to tests that address endogeneity, to the use of perception-based measures of corruption, and after controlling for credit demand conditions. In further analysis, we show that these effects are more evident for smaller banks and banks operating in a single state. These findings provide evidence that public corruption could facilitate information asymmetry in the lending market and, thus, could hinder local development by reducing bank credit.

Effect of Selected Factors on Non-performing Agricultural Loans in Commercial Banks in Kenya

Commercial banks plays a crucial role in the Agricultural sector in advancing farmers affordable credit to improve their productivity, enhancing their food security, and expanding their income. Financing of the sector however continues to get the lowest levels of credit in Kenya compared to other sectors due to poor loan repayment. This study aimed to establish the effect of macro-economic factors of Gross Domestic Product (GDP), Real Effective Exchange Rate, and the Lending rate on Agricultural Non-performing Loans (NPL) and to assess the effect of Growth in Loan Portfolio on Agricultural NPL. Secondary data relating to Commercial Banks lending to the agricultural sector for a period of 7 years from 2011 to 2017 was collected from forty-two Commercial Banks in Kenya. Results showed that agricultural NPL had a strong positive correlation with real GDP (0.836, p<0.001), the Real Effective Exchange rate (0.865, p<0.001), and a weak inverse correlation with the average Bank Lending rate (-0.48, p<0.01). The study concluded that commercial banks should pay close attention to the two factors (Gross Domestic Product and Real Effective Exchange rate) when providing loans to the agricultural sector to reduce the level of impaired loans. The banks active in agricultural lending should, therefore, take the performance of the real economy into account when extending loans given the reality that loan delinquencies are likely to be higher during periods of economic boom as suggested by the study results. Equally Commercial banks should trade with high prudence to curb a possible impairment due to reckless lending and over-estimation of the borrower’s ability to pay back. They should constantly review the complexity and diversity of the new loans to the agricultural sector periodically like quarterly, and do aging analysis to ensure that the growth in agricultural loans do not serve to window dress the portfolio at risk percentage while the actual amounts in default are increasing.