Bank Credit Research Articles

The Study on the Distance Teaching Form Innovation based on the Virtual Value Chain Angle

Based on the internet and the education sharing economy, the distance teaching form innovation corresponding to the form (binary system), which includes campus form innovation (virtual campus, smart campus) and classroom form innovation (virtual classroom, smart classroom). The distance teaching form innovation corresponding to the distance system virtual value chain, which including campus form innovation (virtual campus, smart campus) and classroom form innovation (virtual classroom, smart classroom). The distance teaching form innovation corresponding to the content (cooperation) virtual value chain, which including teacher form innovation ( The distance teaching form innovation corresponds to the content (cooperation) virtual value chain, which includes teacher form innovation ( virtual teacher, robotic teacher), credit form innovation (school credit bank, virtual credit) and certificate form innovation (1+x certificate, virtual certificate). The distance teaching form innovation based on the virtual value chain angle, it’s helpful to build the first class brand of distance education. The distance teaching form innovation based on the virtual value chain angle, it’s helpful to build the first class brand of distance education.

ANALISIS DAMPAK IMPLEMENTASI STRATEGI CROSS SELLING PADA PENAMBAHAN DANA PIHAK KETIGA SERTA PENAMBAHAN JUMLAH NASABAH FUNDING DI PERUMDA BPR BANK DAERAH KOTA MADIUN

The main objective of this research is to investigate how the cross-selling strategy is applied and how it affects the collection of third party funds. Second, examine the obstacles to cross selling strategies in raising third party funds. Third, look into how the cross-selling approach is being used and how that is affecting the amount of money raised for third party funds. This study uses a field research methodology and is qualitative-descriptive in nature. Madiun City Regional Bank, People's Credit Bank (BPR), and Regional Public Company (Perumda) served as the research subjects. This study's objective is to develop a cross-selling strategy that will boost third-party funding. Documentation, interviews, and observation are methods used to collect data. The three stages of the data analysis procedure were data reduction, data display, and conclusion drawing. To determine the veracity of the data, take into account using source triangulation. First, the research's findings indicate that the Tabunganku Product becomes the primary account when cross-selling is implemented. Furthermore, you can get other services, namely having more than one savings product account, lower credit interest, receiving deposit interest and disbursing credit through your Tabunganku account. Second, the obstacles are competition with conventional banks, savings cannot be disbursed at any time, and lack of communication with customers. Third, the impact that arises is customer loyalty, increasing income, reducing time and costs, and maintaining public trust in using third party fund products.

Banking competition in Indonesia: does Fintech lending matters?

PurposeThis paper aims to examine how the rise of financial technology (Fintech) lending affects bank competition. Moreover, this study also identifies the structure of Indonesian commercial banking sector and the different behaviour of competition among bank groups (based on their size, type and ownership) and the joint impact of COVID-19 due to the rise of Fintech lending.Design/methodology/approachUsing an unbalanced panel data set of 118 commercial banks in Indonesia over the period 2018–2022, both static panel and 2SLS/IV data analysis were used and found that random effect model is the best model.FindingsThe results show that the Indonesian commercial banking sector can be considered as monopolistic competition. Moreover, using the Lerner index reveals that the entry of the Fintech lenders increases bank competition. Furthermore, there were different responses to the impact of Fintech lending on bank competition among state-owned banks, private banks, regional development banks and foreign banks. Greater efficiency and stability lead to greater market power. In the meantime, higher level of asset growth, capitalisation and cost-to-income ratio increase the competition. Lastly, higher bank credit growth and lower inflation boost overall bank competitiveness.Practical implicationsThis study highlights some policy recommendations for commercial banks to be aware of the coming of Fintech lenders because they have started to increase the market competition. The government should create a more collaborative ecosystem between banks and Fintech lending to anticipate unhealthy competition.Originality/valueThis study will contribute to the literature by expanding the determinants of bank competition by considering the rise of Fintech lending in the market.

Trade Uncertainty and Bank Credit Growth: Evidence from China and the European Union Countries

Trade Uncertainty and Bank Credit Growth: Evidence from China and the European Union Countries

Existence of Banking Credit Agreement with Standard Clauses Related to the Implementation of Consumer Law Protection in Indonesia

This study examines the existence of banking credit agreements with standard clauses in the context of the implementation of consumer law protection in Indonesia. Standard clauses are often used by banks to regulate the legal relationship between banks and customers. However, the use of this clause often causes problems because it is considered detrimental to consumers. An agreement made by debtors and creditors is a complex series of laws, the emergence of conditions in an agreement that is still standard made unilaterally by business actors in this case, is banking where consumers have to submit and comply with the agreement there are standards clauses contained in a contract in the future making the consumer's position disadvantaged so that The situation possessed by debtors and creditors or business actors and consumers is not equal. This legal situation makes consumer protection law take many roles against violations or unlawful acts committed by debtors or, in this case, business actors. Legal protection for consumers in Indonesia is regulated in Law Number 8 of 1999 concerning Consumer Protection and Renewal in Law Number 4 of 2023. This study aims to analyze the extent to which standard clauses in banking credit agreements affect consumer rights and how the implementation of consumer law protection in Indonesia. The research method used is juridical normative with a qualitative approach. The results showed that although standard clauses aim for efficiency, they often contain unbalanced provisions that harm consumers. Therefore, tighter supervision and clear regulation are needed to ensure better consumer legal protection in banking credit agreements.

Unraveling the Loan Growth Threshold Effect on Non-Performing Loans During Total Dollarization in Zimbabwe

The availability of bank loans is a vital component in determining the investment and spending patterns that influence economic growth. This article examines the threshold effect of loan growth on non-performing loans (NPLs) in the Zimbabwean banking industry during dollarization. The study employed panel threshold regression models developed by Seo et al. (2019) and Kremer et al. (2013) on a panel of thirteen banks from 2009 to 2017. The study revealed that locally owned banks held a higher percentage of NPLs (12.7%) than foreign-owned banks (6.1%) during the period under study. The study also documents a loan growth threshold level of 38%. On average, the industry lends excessively, as demonstrated by the 48% loan growth rate. Primarily, local banks dominate this rate by lending above the threshold compared to foreign banks. The study observed that, below and above the threshold, loan growth exerts a negative and significant effect on NPLs. Based on the results, it can be recommended that banks should devise strategies to maintain a steady loan growth rate, enhance profitability, and effectively monitor liquidity risk exposure. The findings provide insights into reviewing bank credit policies and prudential guidelines.

Unraveling the dynamics: macroeconomic drivers of equity market development in Sub-Saharan Africa

PurposeThe aim of this paper is to contribute to empirical research by identifying the key macroeconomic drivers of equity market development in Sub-Saharan Africa (SSA) and to ascertain if banking sector development complements equity market development in the SSA region.Design/methodology/approachThe study employed the dynamic panel data approach using the pool mean group (PMG). The sample covered is twenty-seven (27) SSA countries between the period 2000 to 2020.FindingsThe result suggests that banking sector development, economic growth, migrant remittance and trade openness are the key drivers of equity market development in the SSA region. The study also revealed that banking sector development complements equity market development in the SSA region.Originality/valueThe use of robust measure in measuring equity market development (i.e. ratio of portfolio equity to gross domestic product) in ascertaining the macroeconomic drivers of equity market development. Likewise, exploring whether banking sector development complements equity market development in the SSA region makes the paper more unique, especially using the ratio of bank credit to bank deposit as a measure banking sector development.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-01-2024-0005

Analisis Perbedaan Antara Pembiayaan Bank Syariah Dengan Kredit Bank Konvensional : Analisis Variabel Utama Pembiayaan

This paper discusses the differences between Islamic bank financing and conventional bank credit. This research method is descriptive qualitative by analyzing the basic theory of the fundamental differences between Islamic bank financing and credit at conventional banks. The data was collected using literature studies from scientific journals and basic sharia economics books. Meanwhile, data analysis uses tabulation, coding, editing and verification or conclusion methods. Conventional banks prioritize and prioritize the complete guarantee aspect, whereas in sharia banks it only focuses on the character aspect of the customer itself, meaning that it can be said that the sharia bank believes that the customer will have good intentions when providing credit or financing within a certain agreed period of time.

A supply chain finance risk management model for the electric vehicle supply chain: a data-driven analysis

ABSTRACT Government policies and financial regulations, supply chain risk assessments, and technology have made electric vehicle (EV) supply chain challenging for Thailand to adopt and implement (SCF) effectively. This study aims to perform a data-driven analysis that provides insight into SCF risk management and inputs for an EV supply chain. Prior studies are lacking to propose a data driven SCF risk management model and present the model in the EV supply chain. This study proposed a hybrid approach to validate the attributes and formed the hierarchical structure. This study contributes insights into a valid SCF risk management hierarchical structure, identifies the causal interdependent relationships among the attributes, and determines the attributes for the model. The results show that financing risk control and global SCF strategies are needed for improvement. The bullwhip effect, decision-making processes, bank credit, corporate social responsibility, and reverse factoring are important for practices.

Can board funds, bank credit, and economic development improve food production? Evidence from South Asia

PurposeThis study investigates the impact of board funds, banking credit, and economic development on food production in the context of South Asian economies (India, Pakistan, Bangladesh, Sri Lanka, and Nepal).Design/methodology/approachThis study used data from the World Development Indicators covering the years 1991–2019. To investigate the relationship between the variables of the study, we employed the panel unit root test, panel cointegration test, cross-sectional dependence test, fully modified least squares (FMOLS), and panel dynamic least squares (DOLS) estimators.FindingsThe empirical results indicate that board funding significantly increase food production; however, banking credit had a negative impact. Furthermore, the findings indicate that economic development, Arable land, fertilizer consumption, and agricultural employment play a leading role in enhancing food production. The results of the Dumitrescu-Hurlin causality test also show substantiated the significance of the causal relationship among all variables.Practical implicationsSouth Asian countries should prioritize board funding, bank credit, and economic development in their long-term strategies. Ensuring financial access for farmers through micro-credit and public bank initiatives can spur agricultural productivity and economic growth.Originality/valueThis study is the first to combine board funding, banking credit, and economic development to better comprehend their potential impact on food production. Instead of using traditional approaches, this study focuses on these financial and developmental aspects as critical determinants for increasing food production, using evidence from South Asia.

The Research on the Impact of Shadow Banking on Small and Medium-sized Enterprises in China

Because of the serious financial repression in China's financial system, the traditional commercial bank's credit is very large. It is difficult to reach small and medium-sized enterprises and industries restricted by credit policies. In order to solve this existing problem, those Independent of traditional commercial banks, not subject to or less supervision by the central bank, and capable of providing credit Institutions have emerged, traditionally known as shadow banks. Shadow banks have been quantitative easing money It played an important role in the implementation of the policy. This paper will explain China's shadow banking system from the introduction of shadow banking, the development of shadow banking in China and some of its impacts, as well as the introduction and analysis of special cases of shadow banking and the impact of shadow banking on small and medium-sized enterprises. This paper draws the following conclusions through research: With the growing development of shadow banking in China, China's shadow banking system is becoming increasingly complex, and small and medium-sized enterprises have gained more development opportunities due to the characteristics of high risk and high returns brought by shadow banking.

Structural shifts in bank credit ratings

We investigate the time variation in credit rating standards awarded to financial institutions of commercial bank credit ratings awarded by the three principal CRAs from 1990 to 2015 in a world-wide context by testing for well-defined structural shifts. We focus on the part of the ratings that cannot be accounted using publicly available information. We test whether major financial events are conditioning, ex-post such changes Distinctively in this paper’s timespan our analysis covers four periods: (i) before and (ii) after the 2001–2 corporate collapses, followed by (iii) before the global financial crisis and (iv) after the global financial crisis. We find substantial differences in the assignment of bank credit ratings among the three major agencies, Moody’s, Fitch, and S&P. Agencies differ both in terms of re-adjustment of ratings but also on the speed of response to the evens. All three agencies tightened ratings during the 2008 crisis and kept reducing them in its aftermath.

Analyzing monetary policies and bank credit in Indonesia’s provincial clusters amidst COVID-19 pandemic

This research investigates the impact of monetary policy instruments employed by the Bank of Indonesia (BI), including reserve requirement (GWM), policy rate, and loan-to-value (LTV) ratio, on bank credit by sector in Indonesia. We utilize FMOLS and DOLS techniques to estimate the effects of policy instruments and COVID-19 variables on bank credit across six clusters of provinces. Our findings indicate that the GWM exhibits a negative impact, while the policy rate positively influences bank credit in all non-household sectors in Indonesia. The LTV instrument significantly affects bank credit in household sectors. Furthermore, The Covid-19 pandemic’s influence on the relationship between each policy instrument and bank credit varies across economic sectors and provincial clusters. We recommend BI to utilize the GWM and LTV instruments more frequently and exercise caution in reducing the policy rate to very low levels, as excessively low interest rates may not incentivize banks to increase lending.

Working Capital Management and Bank Mergers

This study investigates the consequences of bank mergers on non-financial borrowers’ working capital management. We find evidence that bank mergers increase corporate cash holdings and decrease receivables and investments in inventories by reducing bank credit availability. Bank mergers also decrease trade credit used through the reduction in bank credit availability. These findings are new contributions to the literature, suggesting that borrowing firms find it more difficult to manage working capital after bank mergers occur and that bank-dependent firms find it more difficult to manage working capital than their non-dependent counterparts after mergers.

A hybrid pseudo‐Malmquist and Grey–TOPSIS model for group efficiency comparison: Bank credit allocation efficiency comparative analysis in China

AbstractThis study examines the efficiency of credit allocation among various types of banks in China. Seven different varieties of Chinese banks' performance are examined from 2011 to 2021. We introduce a novel hybrid pseudo‐Malmquist–Grey–TOPSIS model that effectively addresses the need for integrating uncertainty and heuristics in relocation decision‐making. Our analysis reveals that the Joint‐Stock Commercial Bank demonstrates superior performance in terms of credit allocation efficiency. In contrast, rural commercial banks exhibit suboptimal performance when it comes to credit allocation convenience, indicating the importance of prudent credit risk management for this category of banks. It is important to note that the loan allocation performance of each bank category is primarily influenced by the distinct characteristics associated with that specific bank type. However, it is crucial to understand that the success of each bank category's frontier, regardless of its quality, should not be considered a causative determinant of the overall performance of such types of banks.

Economic activity and the bank credit channel

We study empirically the effect of growth in real economic activity on the strength of the bank credit channel of monetary policy in the United States using quarterly commercial bank-level panel data between 1986 and 2018, and bank-firm matched administrative data on loan volumes and terms between 2012 and 2018. We find that monetary policy is significantly more effective through the bank credit channel in spurring activity during periods of low economic growth than in cooling the economy when growth is high. Our results also suggest that the channel operates through a broader range of loan categories and banks than previously documented, that it is stronger for business than household lending, and that for some of the major loan categories it only operates in a low economic growth environment.

Bank liability structure and corporate employment: Evidence from a quasi-natural experiment in China

We examine how bank liability structure affects firms' hiring decisions. To identify causality, we utilize the 2014 interbank borrowing reform that has different impacts on national and regional banks as an exogenous shock. Particularly, we construct the exposure of firms to this reform and then run a difference-in-differences regression. The results show that an increase in banks' deposit funds promotes corporate employment, and the number of total employees on average increases by 4.4%. Further mechanism tests find that banks provide more loans and firms obtain more access to bank credit, confirming the credit constraints channel. Moreover, the corporate employment promotion effect is stronger when financial constraints, information disclosure quality and labor intensity are higher. In addition, firms' employee composition and average wage paid to workers do not change, while their productivity and production scale increase. Overall, our evidence highlights the active role of regulating banks' interbank borrowing in stabilizing social employment.

Corporate governance, social responsibility and sustainability commitments by banks: Impacts on credit risk and performance

AbstractWith the increasing pressures to commit to social and environmental issues, banks align with stakeholders' expectations via corporate social responsibility (CSR), and sustainable development goals (SDGs) initiatives. Understanding how these initiatives affect credit risk and performance of banks is crucial for the economy. Relying on the dynamic generalized method of moments and data on Thai listed commercial banks from 2015 to 2020, we find commitments to good governance, CSR and SDGs largely have an opposite effect on bank credit risk and performance. Consistent with stewardship or resource dependency hypothesis, together with stakeholder and good management hypothesis, banks with more female directors, higher levels of anti‐corruption and SDGs commitments are associated with a reduction in credit risk. However, consistent with queen bee hypothesis and agency and trade‐off hypothesis, banks with larger board size, more female directors and higher levels of CSR and SDGs commitments underperform. This apparent contradiction between negative impacts on bank performance and positive impacts on credit risk can be reconciled by understanding the trade‐offs involved, the long‐term focus of sustainability initiatives, leading to a decline in short‐term performance but enhancing their resilience to adverse events, ultimately reducing credit risk. Our findings enable stakeholders to make informed decisions, improve sustainable business practices, and contribute to the long‐term success of banks and the broader society.

Monetary Policy, Digitalisation and Banking Industry Performance in Nigeria

In the evolving financial landscape of Nigeria, the interplay between monetary policy and digitalization significantly influences the performance metrics of banks. This study explores the multifaceted impact of these two critical factors on the Nigerian banking sector. Monetary policy, orchestrated by the Central Bank of Nigeria, regulates the economy's money supply, affecting banks' lending behaviors and liquidity. Digitalization, on the other hand, offers a transformative potential for banks to enhance operational efficiency, customer experience, and service delivery through technological advancements. The study examines how money supply, lending rate and digitalization (proxied by mobile cell subscription) affect banks’ financial performance, focusing on bank credit and liquid assets, while controlling for inflation and exchange rate variables. It also examines the interaction between digitalization and monetary policy variables on bank performance. Employing an interactive multiple regression model, the study analyzes time series data from 1996 to 2022 sourced from the World Bank. Findings indicate that while stringent monetary policies can constrain bank performance by tightening credit and reducing liquidity, digitalization provides an opportunity for banks to counteract these effects through enhanced efficiency. However, the successful integration of digital technologies is contingent upon adequate investment, regulatory support, and strategic alignment with the banks’ core objectives. The study concludes that Nigerian banks must adeptly manage monetary policy fluctuations and leverage digitalization to sustain and enhance performance. These insights could guide policy formulation and strategic decision-making within the banking industry.

A Study of Financial Planning on Young Individuals in Delhi NCR

This research paper investigates the significance of financial planning for young individuals in achieving long-term financial security and stability. With the increasing complexity of the financial landscape and the challenges posed by economic uncertainties, effective financial planning is indispensable for the younger generation. The paper examines various strategies and tools available for young individuals to manage their finances prudently, including budgeting, saving, investing, and debt management. Additionally, it explores the role of financial education and literacy in empowering young people to make informed decisions about their finances. Through a comprehensive review of existing literature and case studies, this paper highlights the importance of early financial planning in building wealth, mitigating risks, and achieving financial goals. Furthermore, it discusses the potential barriers and challenges faced by young individuals in implementing financial plans, such as student loans, low income, and lack of knowledge. Finally, the paper offers practical recommendations and actionable insights for young individuals to enhance their financial well-being and lay a strong foundation for a secure financial future. Monetary items function as a venture route, providing the financial supporters with the predefined monetary security and upholding the monetary items' gamble return profile. In the past traditionally, In India, banks (credit and store accounts), the Life Insurance Corporation (LIC), and the Post Office (repeating shop, National Saving Certificate, Kisan Vikas Patra) all displayed financial products. However, in recent times, as the financial services sector has advanced, new financial products have been introduced, including common stocks, shares, subordinates, annuity plans, children's education plans, life and non-extra security plans (Unit Linked Investment Plans, or ULIPs), common assets, and shares. Each person behaves differently when contributing, therefore each has a different predisposition towards speculation. A private person's investment behavior is influenced by his own circumstances. With the presumption of producing yields people invest in a few financial goods with the hope of earning sizable returns over time and with varying degrees of risk. The goal of the current analysis is to examine how salaried individuals speculate about financial goods that are supported by various segment elements.