Bank Credit Research Articles

FAKTOR-FAKTOR YANG MEMPENGARUHI PENERAPAN SAK EMKM PADA LAPORAN KEUANGAN UMKM DI KOTA JAMBI

This study aims to examine the effect of SAK EMKM socialization and the need for bank credit on the application of SAK EMKM to MSMEs in Jambi City. This research is quantitative research with a sample size of 120 respondents. This research data was collected through questionnaires, processed and analyzed using multiple linear regression analysis. The data quality test in this research is the Pearson Correlation validity test and the reliability test using Cronbach Alpha. To test the hypothesis using the coefficient of determination test which has been adjusted to the t test and F test. The results of this research data indicate that the socialization of SAK EMKM has a positive and significant effect on the application of SAK EMKM. And banking credit needs have a positive and significant effect on the implementation of SAK EMKM

Green credit policy and corporate excess cash holdings.

Green credit is changing industrial structure and corporate behavior, but little attention has been paid to the relationship between green credit and corporate cash management behavior. Based on the typical fact that the allocation of traditional bank credit funds is biased towards heavily polluting industries and the exogenous impact event of green credit policy, this paper takes A-share listed companies in China's capital market from 2008 to 2015 as samples, and uses the DID model to investigate the impact of green credit policy on excess cash holdings of heavily polluting enterprises. The findings indicate that the green credit policy has reduced the excessive cash holdings of heavily polluting enterprises, suggesting that it can correct the issue and align their cash holdings with the requirements of normal production and operations. The mechanism test demonstrates that the green credit policy can alleviate agency conflicts and influence enterprise cash holdings. Moreover, a cross-sectional investigation reveals that the inhibitory effect of the green credit policy on cash holdings is more pronounced in large-scale and state-owned enterprises compared to small-scale and non-state-owned enterprises. Finally, an analysis of the economic consequences reveals that the green credit policy indirectly enhances corporate value by reducing excessive cash holdings. Based on this, banks and financial institutions continue to treat the credit granting of heavily polluting enterprises cautiously, optimize the structure of green financial products, fully consider the different types and nature of customers, and develop differentiated lending conditions and diversified evaluation mechanisms. This paper has enriched the research on the economic consequences of green credit and the influencing factors of corporate cash holdings, and provided policy enlightenment for regulators and listed companies to correctly understand and make full use of green credit policies to keep corporate cash stable through the crisis.

PENGARUH KEPUASAN NASABAH DALAM PENGGUNAAN KARTU KREDIT PADA PT BANK UOB JAKARTA

The rapid development of technology is very influential on economic conditions in a country. Especially in the banking sector. The impact is a shift in people's behavior in consuming a good or service. The existence of this technological transformation must be addressed wisely, especially banks by innovating, efficiency and effectiveness of service services to customers. Banks need to improve Trust, Service Quality and Brand image in order to be competitive. This bank continues to strive to provide services in order to satisfy its customers. Bank UOB is a company engaged in banking that has its head office in Jakarta and branch offices in several other cities in Indonesia. The more advanced technological developments, many people are looking for an item or tool that is flexible, efficient and can be used whenever needed without having to waste so much time. In this era, banking increasingly refers to efforts to achieve social, economic progress, by making new products, providing better service quality and instilling trust and a good brand image in customers.This study aims to prove and analyze the effect of trust, service quality, brand image on the satisfaction of Bank UOB Jakarta credit card users. The study population is all UOB Bank credit card users, sampling is carried out by probability sampling with the random sampling method, Data analysis using SPSS 23 the number of samples used was 70 respondents from 230 populations. The results proved that trust has a significant positive effect on UOB Bank credit card user satisfaction, service quality has a significant positive effect on UOB Bank credit card user satisfaction, brand image has a significant positive effect on UOB Bank credit card user satisfaction.

The effects of Foreign Investment shocks on the US economic growth and risk factors

ABSTRACT We examine the effects of shocks to Total Foreign Investment (TFI) and its components, Foreign Portfolio Investment (FPI), Foreign Direct Investment (FDI), and Bank Credit (BC) on the US economic growth and risk factors by estimating a series of Dynamic Factor Models. We extract comovements from 31 indicators to capture composite indices of output, monetary, and credit risk conditions that measure the US market conditions. We find that positive shocks to TFI, FPI, and FDI increase the real economic activity and lower the aggregate risks in the US. We also find that a shock to FPI results in the largest impacts on output and risk factors as well as their associated indicators, followed by shocks to TFI and FDI, respectively. Furthermore, we find that FPI shocks contribute the most to the historical fluctuations of output, monetary, and risk indicators.

Does financial inclusion enhance per capita income in the least developed countries?

Financial inclusion is a key factor for economic growth in most developing countries. This paper examines the relationship between financial inclusion and Gross Domestic Product (GDP) per capita in the Least Developed Countries (LDCs) using panel data for the period 1990–2021. The empirical evidence suggests that financial inclusion is indeed related to economic growth in the LDCs. We consider different dimensions of financial inclusion: usability (% of bank credit to bank deposits), accessibility (commercial bank branches), concentration (% of concentration of banks), and availability (depositors with commercial banks) to determine which has a greater effect on economic growth in the countries analyzed. Therefore, we assess which dimensions of financial inclusion are a better tool to improve the economic situation in the poorest countries in the world. While we conclude that all dimensions of financial inclusion have a positive effect on economic growth, in the expected direction, we find that not all dimensions affect economic growth similarly. The dimensions ‘accessibility’ and ‘concentration’ are robustly associated with economic growth, while ‘usability’ and ‘availability’ produce a significant but relatively lesser effect in the LDCs.

Does gender matter in financing SMEs in green industry?

This study explores gender differentiation in access to credit which penalizes Italian female-led green SMEs compared to male-led ones. We carry out a panel analysis with 184,425 observations, of which 5855 refer to green firms, observing how the percentage of women among directors and managers (PWDM) affects access to bank credit and its costs. Our results demonstrate that green SMEs show different levels of financial debt compared to non-green ones depending on the PWDM. Our paper contributes to the literature in three ways. First, we investigate whether women-led green SMEs show different demands for financial credit in terms of amounts borrowed and mix between long/short-term bank credit; second, whether this potentially different credit demand is associated with coherent or incoherent effects on the cost of credit; and third, whether the credit demand of women-led green SMEs depends on the PWDM in the company.

The changing face of consumer credit: Evidence from a big tech platform in China

We investigate the changi pattern of consumer credit usage following a large, adverse shock. Using a unique dataset comprising the consumption, payment, and investment activities of nearly 100,000 users of a leading Big Tech platform in China, we find that consumers who have access to both FinTech and traditional bank credit reduce their bank credit card usage while increasing their FinTech credit usage. Moreover, FinTech credit works as a complement rather than a substitute for traditional bank credit on the same Big Tech platform, as the amount of FinTech-credit-enabled payments is much lower. This impact is more pronounced among female consumers, younger consumers, and consumers who invest more money in Big Tech platform. Hence, the rise of FinTech credit is potentially driven by (1) the consumption downgrading (i.e., shifting from large amounts and service consumption to small amounts and daily necessity consumption) in the post-COVID era, when people’s income and growth expectations have been reduced and the uncertainties they face have increased, and (2) payment convenience, as people become less likely to access banks after the outbreak of COVID. Our findings provide novel evidence regarding the relationship between FinTech and traditional bank credit and the interplay between consumption and consumer credit, with implications for consumption resilience in the post-COVID-19 era.

Who is paying all these fees? An empirical analysis of bank account and credit card fees

Banks impose a variety of account fees, and credit card issuers impose a variety of fees related to card usage. Using detailed data from a 2021 representative diary survey of US consumers, we investigate whether lower-income consumers and Black consumers are more likely to pay bank account or credit card fees, and how payment behavior varies depending on paying such fees. We find that the probability of paying several types of bank account and credit card fees is correlated with consumers’ demographic and income attributes. The percentage of Black consumers who pay overdraft or low-balance fees on their bank accounts or pay late fees or cash-advance fees on their credit cards is higher than the percentage of White consumers who pay those fees. We find that some fees on bank accounts and credit cards are regressive: lower-income consumers are significantly more likely to pay overdraft, bounced check, or late fees. While Black consumers were significantly more likely to pay any bank account fee, the race effect was smaller when controlling for income in the regressions.

Does ESG Affect Bank Lending to Companies?

with the serious intensification of global warming in recent years, countries around the world are actively developing carbon neutrality, carbon peaking, and reducing carbon emissions to ensure a healthier operation of the earth. To cooperate with the low-carbon policies of various countries, companies have also begun to implement policies to reduce carbon emissions and save energy, so ESG has gradually become a hot topic. ESG indicators are also becoming increasingly important in the financial industry. This research is a review essay. The research direction is to explore whether ESG indicators will affect corporate credit in banks by studying the policies and various data on carbon emissions that have been released by countries and by reading published papers. Through research on government policies and current thesis research, it is shown that there are currently no clear policies or rules stipulating how ESG indicators will affect corporate credit in banks, but the current banking industry will indeed pay more attention to ESG performance of companies when leading to companies, good ESG indicators will lead to better bank credit and lower cost of banking credit.

Penerapan Akad Musyarakah Mutanaqisyah Sebagai Alternatif Solusi Pembiayaan KPR Dalam Perbankan Syariah

This article discusses the application of musyarakah mutanaqisyah related to KPR (Home Ownership Credit) financing in the sharia banking system. The purpose of this article is to provide an overview of the application of the musyarakah mutanaqisyah contract as an alternative KPR (Home Ownership Credit) financing solution in sharia banking. Apart from that, this article also analyzes the obstacles in implementing musyarakah mutanaqishah contracts on KPR (Home Ownership Credit) in sharia banking. The research method used is the library research method or library study. Literature studies are devoted to revealing information sourced from scientific texts originating from books or scientific journals that are relevant to the topic being discussed. The research results obtained show that the application of the musyarakah mutanaqishah contract in mortgage financing in sharia banking has several advantages as an alternative solution in sharia financing, namely where the bank and the customer both own an asset that is the object of the agreement. Because they have mutual rights to do so, banks and customers mutually maintain the agreed cooperation.

A Study on the Relationship Between Government Funding Supply and Central Bank Money Supply

With the development of the economy, the relationship between government funding supply and central bank money supply has received widespread attention. This paper first analyzes the influencing factors between government funding supply and central bank money supply, then explains the data processing method, and finally verifies the feasibility of this study through experiments. The experimental results show that there is a certain degree of correlation between government funding supply and central bank money supply, and channels such as fiscal expenditure, debt issuance, and bank credit of government funding will affect the changes in central bank.

Information System for Collecting Customer Collateral Using PHP and MySQL (Case Study BPR BKK, Giritontro, Wonogiri Branch)

Rural Credit Bank of Giritontro District (BPR BKK Giritontro) is a financial institution engaged in savings and loans in the Giritontro District of Wonogiri. BPR BKK's customers provide collateral when applying for loans, and once the loans are repaid, the collateral is returned. However, the current collateral retrieval process at BPR BKK Giritontro is done manually through recording in a logbook maintained by administrative staff, leading to issues such as vulnerable and easily lost storage media. Additionally, there can be delays in the retrieval process if the administrative staff is absent, as only they have access to the storage cabinet key. The logbook system also hinders data search efficiency for collateral retrieval verification. This research aims to develop an information system for customer collateral retrieval to assist the administrative department in managing collateral retrieval. The author adopts the System Development Life Cycle (SDLC) waterfall model for system development and utilizes PHP programming language and MySQL database for the information system implementation.

Bank Credit and Economic Growth: Evidence from OIC Countries

This study aims to explore the impact of bank credit along with three other independent variables, namely population, employment, and inflation, on economic growth in 55 Organization of Islamic Cooperation (OIC) member countries. The data used is annual panel data from 2010 to 2021, obtained from SESRIC OIC. The analysis method applied in this study is static panel data regression. The results show that each independent variable, such as population, employment, inflation, and total bank credit, has a significant effect both simultaneously and partially on the economic growth variable (GDP). Bank credit facilitates the efficient allocation of resources from savers to borrowers who have productive investment opportunities, thereby promoting economic growth. Second, banks act as an important channel in the transmission of monetary policy by providing financial intermediation, receiving and utilizing large amounts of public funds, and creating money supply. Third, bank credit expansion is associated with higher economic growth across industries, encouraging tangible investment but not intangible investment in more debt-dependent industries.

Equities and Cash Holdings: A Long-Term Analysis of Turkish Construction Firms

Being at the first sight bank credits have been implicit in leverage, and among the significant determinants of long-term returns along with cash for many sectors. However, equities could have been neglected in this perspective. A sustainable proportional level of equities with the help of a return variable may alter the expectations on bank credit effect, and in this context; this study aims to reveal whether there exists a set of identical determinants for cash holdings in the case of the Turkish construction sector. By assessing a set of aggregate data from the balance sheets of the businesses in this very sector, we have eliminated most of the variables and written two models in which an alternative return indicator is considered an extra independent to significantly presume cash and cash equivalents in the selected sector. We therefore conclude that both return on assets and return on equities could be used interchangeably. In the analysis, the essential variables are revealed as equities on assets and the ratio of bank credits in the short-term on current liabilities. The study also asserts robust results for both independent returns with the same set of predictors in which bank credits are not alone in a leading role, however, equities stand to be qualified as a sustainable contributor to liquidity as well.

Bank Credit and Loan Repayment Rates during COVID-19 in Kabale District, Uganda

The study was to investigate the impact of bank credit on loan repayment rates in the Kabale region using Lyamujungu SACCO as the case study. Loan repayment performance at Lyamujungu SACCO has rapidly declined. This study used a cross-sectional survey method to examine, characterize and compare bank credit and loan repayment in Kabale district, using Lyamujungu SACCO as the case study. The sample size for each subject type was determined using the table of Krejcie and Morgan. Out of 150 samples, a sample of 108 people was selected for the study. The researcher used both purported sampling and simple random sampling to select members/clients of SACCO. Based on the results in the table, the null hypothesis for all three variables is rejected, with a significance level of (p = <.000, p = <.040, and p = <.001). This means that there is evidence that the distribution of mean scores for each of the three variables is not the same depending on the borrower's ability to repay. The study concluded that labor productivity growth decreased and therefore, income decreased, investment decreased and affected the borrower's ability to repay loans during the COVID-19 pandemic in Lyamujungu SACCO.

Penerapan sistem informasi akuntansi dalam mendukung pengendalian internal pemberian kredit pada Bank Perkreditan Rakyat Millenia Bank Kota Manado

Millennia People's Credit Bank is facing problems that have a significant impact on the health of the bank, namely issues such as substandard credit, which often occur. This risk could cause Millenia Rural Bank to experience losses. To mitigate this risk, the bank must conduct a thorough credit analysis to support internal controls in making decisions to accept or reject prospective customers' credit applications. The type of research used in this study is descriptive qualitative. In the accounting information system, procedures for granting BPR Millenia credit, from submitting a credit application to disbursing credit funds, have been carried out properly and in accordance with applicable procedures. The accounting information system at PT. Millenia Rural Bank plays a very important role in carrying out credit providing activities. With an accurate accounting information system, employees at PT. Millennia People's Credit Bank can easily obtain the data and documents needed before the credit granting process.

Role of financial inclusion and digital transformation on bank credit risk

As a result of information asymmetry, banks have generated many non-performing loans, jeopardizing financial stability. This paper investigates the relationship between digital transformation and credit risk and whether financial inclusion plays an interactive role. The paper employs the Generalized Method of Moments (GMM) and data from 116 Chinese banks from 2014 to 2021 to investigate the issue. The results show that digital transformation significantly and dynamically reduces bank credit risks, and inclusive finance plays an interactive role. As financial inclusion increases, this risk-reducing effect will increase, meaning that banks need to combine financial inclusion to promote bank risk reduction better and maximize risk assessment accuracy.

Private Sector Investments: The Implication of Deposit Money Banks’ Credits in Nigeria

Reported in this article is the empirical effect of deposit money banks’ credits on Nigeria’s private sector’s investments. The study was evaluated empirically over a period of forty-one years, from 1981 to 2021. Deposit money banks’ credits is proxied by bank credits, with interest rate and money supply moderating regressors while private sector investments is measured as private investments. Utilized for analysis are sourced secondary data from the Central Bank of Nigeria statistical bulletin and the applied methods of analysis include descriptive statistic technique, Augmented Dickey-Fuller’s Unit Root test, Auto regressive Distributed Lag technique. The findings obtained showed clearly that private investments and banks’ credits were stable at levels, as cost of credit (interest rate) and money (liquidity) supply were stationary at first difference. In addition, banks’ credits had direct and significant effects on the regress and (private investments) in Nigeria, cost of credit had negative but significant bearing on private investments while money supply had positive and significant effects the independent variable. Lastly, there exists long-run equilibrium rapport among private investment, banks’ credits, interest (credit) rate and money supply at 5 percent critical level. Sequel to these findings, it is therefore concluded that deposit money banks’ credits had significant-positive effects on private sector investments in Nigeria in both short run and long run. It is thus, recommended among others that deposit money banks need encouragement to expand credit extensions to private sector operators for sustainable enhancement of investments in this sector of the economy.

P2P lending and banking credit for MSMEs and Non-MSMEs after COVID-19 pandemic: Does it matter?

This paper proposes an original view to determine the effect of P2P loans on MSME and non-MSME bank loans after the COVID-19 pandemic as a whole and then focuses on the island of Java (more developed areas) and outside Java (areas which are still undeveloped). The approach used in this study uses panel data regression from 33 provinces in Indonesia during Jan-Dec 2022 after the COVID-19 pandemic. The results of this study confirm that P2P lending is not a disrupter for bank credit, the details of the results are: (1) P2P lending has a significant positive effect on overall MSME banking credit, but has no significant effect on overall non-MSME banking credit; (2) P2P lending has no significant effect on MSME banking credit in Java, but has a significant positive effect on non-MSME banking credit in Java after the COVID-19 pandemic; (3) P2P lending has a significant positive effect on MSME banking credit outside Java after the COVID-19 pandemic, but has no significant effect on non-MSME banking credit in Java post the COVID-19 pandemic.

The short- and long-run relationship between house prices and bank credit in developed and emerging market economies: A comparative study

This study compares the short- and long-term relationships between house prices and bank credit in developed and Emerging Market Economies. This fact is an essential issue because most financing is facilitated by bank credit. Using quarterly data from 22 developed and six Emerging Market Economies and the panel autoregressive distributed lag model method, this study found that real house prices are the prominent factor of bank credit. Moreover, the magnitude of house prices and gross domestic product relationship with domestic bank credit is considerably greater in Emerging Market Economies than in developed nations. Meanwhile, the foreign interest rate on bank credit is nearly four times greater in Emerging Market Economies. Further, the exchange rate-credit relationship is positive for developed countries, whereas negative for Emerging Market Economies. Therefore, authorities maintaining financial stability must pay close attention to real house price dynamics. Moreover, Emerging Market Economies must also consider the exchange rate and foreign interest rates in managing credit growth.