Bank Loans Research Articles

Organised abandonment in Lebanon's Litani River Basin

This paper is a historical political ecology of the organised abandonment of Lebanon's rural margins. It argues that the present ecological catastrophe in the Litani River basin derives from the historical constitution of Lebanon's environmental regulatory apparatus as mediators of flows of capital that generate ecological fragility, or “capitalogenic flows.” In 2021, a massive fish kill brought the Litani River basin's spectacular ecological degradation to global attention. In response, the Litani River Authority (LRA), the Lebanese agency that manages the basin, launched a campaign against “environmental crimes” that concentrated on displacing thousands of Syrian refugees and demolishing their homes. This reflects a rebranding of the LRA, which was founded in 1955 to coordinate a World Bank loan for hydroelectric infrastructure on the Litani. Rather than commodify the water itself for irrigation or drinking—which might entail pollution controls—the Bank monopolised the basin landscape as an energy resource. Prevented from accessing the river, Litani communities have repeatedly reasserted popular sovereignty. The paper situates that history in the context of the institutional formation of Lebanon's environmental regulatory apparatus. Unlike postcolonial countries subjected to neoliberal dispossession after 1980, decades of contested institution-building from Lebanon's origins arrayed the state and its regulatory capacities around capitalogenic flows and the organised abandonment of the country's rural surplus population.

EMERGING TRENDS OF FUNDING SOURCES SMES WITH BIBLIOMETRIC ANALYSIS

The difficulty for SMEs is access to capital, which has been persistently tough; nonetheless, a solution is attainable. The paper presents an extensive bibliometric analysis of research trends and thematic development in funding sources for micro, small, and medium enterprises (SMEs), specifically concentrating on the timeframe from 2013 to 2024. It underscores the growing interest in innovative financing mechanisms such as equity crowdfunding, fintech, and digital finance, which are becoming essential for MSME funding. Traditional funding sources like bank loans and venture capital continue to be pertinent. However, there needs to be a discernible transition towards technology-enabled financing. The research highlights SMEs' difficulties in obtaining financing due to rigorous banking criteria, particularly in Indonesia. It proposes new study avenues centered on emergent subjects such as crowdfunding and the interaction between fintech and regulation. The results underscore the necessity for enhanced finance access and support systems to support SME growth and competitiveness.

Bank-firm common ownership, green credit and enterprise green technology innovation: Evidence from Chinese credit markets

Bank-firm common ownership can tackle the innovation dilemma of bank loans on firms' green development. This paper constructs indicators of common ownership and green technological innovation and then investigates the impact of bank-firm common ownership on corporates' green technological innovation using Chinese A-share listed enterprises samples from 2004 to 2021. Our conducted experiments reveal that bank-firm common ownership shareholders not only make banks and lending firms have the same goal, promote the total level, quantity, and quality of technological innovation for the green development of lending firms, and profit from the firms' short- and long-term market responses. Our findings are prominent in private enterprises, small-capitalization enterprises, and bull market cycles. In addition, we discover that shareholder reduction restrictions and policies restricting corporate shareholding in financial institutions enhance bank-firm common ownership shareholders on corporate green technological innovation development. Common ownership shareholders reduce information asymmetry between banks and lending enterprises and provide green loans to support enterprise green technology innovations. Furthermore, alleviating financing constraints and strengthening the supervisory role are important influence mechanisms. In this regard, carried PSE analysis indicates the direct effect of bank-firm common ownership shareholders to promote enterprise green development of technological innovation accounts for about 14 % of the total effect, the intermediary effect of “financing mechanism” and “supervision mechanism” account for about 82 % and 4 %, and the “financing mechanism” is more important than the “supervision mechanism.” The findings of this paper can optimize the credit market to serve the green and high-quality development of Chinese enterprises better.

Do Green Bonds Issue Statistically Significant Effect on the Indebteness’ European Companies’ Performance?

Objectives: The objective of this paper is to analyze the impact of issuing Green Bonds on the financial performance of European energy companies. This paper analyses the indebtedness of 30 European companies in the energy sector and verifies if there is any relationship between the Green Bonds issue and companies’ value between 2015 and 2022. Theoretical Framework: Green Bonds have been increasing their visibility in the financing market, representing an innovative debt instrument, becoming a way of reducing the pressure of bank loans and the associated financial costs. Green Bonds present themselves as an important choice for economic agents, with a positive impact on the financial performance of financed projects expected. We therefore thought it would be interesting to analyze whether green bonds have a statistically significant effect on the debt performance of European energy companies. Method: For this purpose, the Bloomberg database was used, and a sample of bonds from Euronext ESG Bonds. A Pooled OLS and Random model were applied. The software chosen for analyzing the empirical model was R Studio. The Chi-Square independence test and Cramer's V were also applied. Results and Discussion: Results indicate that in the years in which energy companies issued Green Bonds they had a better performance, measured by the ROE indicator. The internal variables TTA, LTA, STA, EAF and GAF are statistically significant in the performance (ROE) of the Energy European Companies. The Chi-Square independence test and Cramer's V degree of association between the debt and DUMMY variable were also applied. The conclusion is that when Green Bonds are issued, indebtedness decreases. Issuing Green Bonds is a more sustainable alternative to traditional sources of finance. There is a lot of research in this area, and it is quite diverse. There are researchers interested in this topic on all continents. In this sense, given the difference in Green Bonds legislation and cultural aspects, it is not always straightforward to carry out a comparative analysis of the results obtained. Research Implications: Green finance has become an important subject for researchers and promotes sustainable economic development. The goal is financing green projects, contributing to mitigation and adaptation to climate changes. Represent a resent an innovative debt instrument. In other words, it is an important choice for economic agents. Originality/Value: It's the first study of the European Union's energy companies that emit Green Bonds. It should be noted that issuing Green Bonds is not only important for environmental and sustainability issues, but also means reducing bank loans, which have high financial costs. More sustainable forms of financing are important for growth and keeping up with the changes the world is going through. Companies must be aware of these new forms of financing as routine bank loans are not always the best way to meet companies' financial needs.

Application of Xgboost Model to Predict Bank Loan

Application of Xgboost Model to Predict Bank Loan

Costs of Adjustment, Portfolio Separation, and the Dynamic Behavior of Bank Loans and Deposits – Revised

AbstractWe revise the solutions of the dynamic optimization model of Elyasiani, Kopecky, and Van Hoose (1995), and show that the optimal policy function for the case of adjustment costs and no portfolio separation is a vector autoregressive model of order 1, and not of order 2. In addition, the empirical approach of Elyasiani, Kopecky, and Van Hoose (1995) is incorrect. The optimal policy functions for the no portfolio separation case have to be estimated with a panel vector autoregression model and not with a simultaneous equation approach. We also describe how the portfolio separation hypothesis can be tested empirically based on the correct policy functions.

Firms' gender composition, loan collateral, and sustainable finance

This study evaluates gender gaps in the collateral requirements of bank loans using a sample of firms in Latin America. We measure firm-level gender composition through ownership and workforce, both of which are directly related to women's economic empowerment. Additionally, we evaluate the differences in the impacts of firms' gender composition on collateral borrowing between banks that adopt sustainable finance codes of conduct and those that do not. Our empirical findings indicate that female-dominant firms are less likely to be required to provide collateral for their bank loans, and when collateral is required, its value is relatively lower. However, banks adopting sustainable finance codes are not less likely to grant collateral loans to female-dominant firms; in fact, these banks even require greater collateral values from these firms. The implications derived from our empirical findings concern gender inequality in accessing financial credit in developing countries and underscore the need for designing sustainable finance codes that specifically consider and rectify the challenges faced by female-owned firms, especially by firms with a majority female workforce.

The Impact of the Issuance of e-CNY on the Business Strategy of Commercial Banks

This article comprehensively analyzes the issuance background, main features, technical architecture, and the impact on commercial banking operations and regulatory systems of China's Digital Currency Electronic Payment (DCEP or e-CNY). E-CNY is a legal digital currency that has the essential functions of money and a centralized two-tier operating system, making it compatible and stable with the current financial system. The article first outlines the main characteristics of e-CNY, reviews in detail the research and development process and pilot situations since 2014, and demonstrates its application progress in various scenarios. Furthermore, the article delves into the profound impact of e-CNY on commercial banks' deposits, loans, and international operations, suggesting that e-CNY may reduce the deposit base of commercial banks while providing Chinas small and medium-sized enterprises (SMEs) with a lower-cost financing channel, thereby promoting the development of the real economy. On the international front, promoting e-CNY is expected to enhance cross-border payments' efficiency and strengthen CNY's international competitiveness. Subsequent analysis of the practice of China Construction Bank (CCB) in the field of e-CNY showcases how commercial banks adapt to the era of digital currency. It also points out the need for further clarification and improvement of the regulatory framework to ensure the sustainable development of e-CNY. Finally, particular attention is given to the regulatory challenges e-CNY poses, especially regarding anonymity management, personal information protection, and delineating regulatory responsibilities.

Bank loan maturity and corporate investment

This study analyzes bank loan maturity and corporate investment linkage by using novel firm-level data covering the universe of all incorporated firms in Türkiye over the last decade. The results of the panel regression model with multi-dimensional fixed effects reveal that loan maturity has a significant positive association with investment, indicating that longer debt maturity fosters corporate investment. The results reveal that the positive linkage between longer debt maturity and investment is more pronounced for small and medium-sized enterprises (SMEs). This is also the case for young firms and firms with high growth opportunities. Considering the evidence provided in the literature that bank lending conditions, including maturity structure, are highly cyclical and vulnerable to financial conditions and economic policy uncertainties, our findings highlight the importance of reducing the policy uncertainties as well as the importance of policies that make equity financing more attractive and deepen the capital markets.

The impact of climate change on banks loan portfolios and strategies for effective climate risk management

As extreme weather events continue to impact every continent and the world moves towards establishing a lower-carbon economy, the banking industry is expected to incorporate climate risk into their risk management practices. Climate change poses significant risks to bank loan portfolios through increased physical and transition risks. This study systematically analysed the literature to identify effective strategies for managing these risks. Our findings reveal that climate-related events can lead to substantial loan defaults and credit losses. To mitigate these impacts, banks can integrate climate risk into their risk management frameworks, adopt sustainable lending practices, and diversify their portfolios. Some banks have already implemented measures to mitigate climate risk through insurance policies, while others are incorporating sustainability criteria into their lending practices, such as financing green projects. By proactively addressing climate risks, banks can protect their portfolios, enhance financial resilience and contribute to a low-carbon economy.

The First Half of 2024 Results for the Consolidated Budgets of the Subjects of the Russian Federation

In the first half of 2024, the dynamics of the total amount of regional budgets revenues slightly lagged behind the inflation rate. At the same time, the growth of own revenues of the consolidated budgets of the Russian Federation regions was largely determined by the dynamics of industrial production in most regions and the growth of average accrued wages. The dynamics of corporate income tax and personal income tax receipts have different directions – the receipts of the first decreased, and the second grew significantly. If, in total, for all subjects of the Russian Federation, the increase of personal income tax revenue offset the drop of corporate income tax, then for some regions the situation was different. At the same time, corporate income tax revenues of the federal budget were growing, mainly due to tax calculated on income from securities (dividends, interest). The previously formed tendency of the intergovernmental grants from the federal budget reduction continued. The share of targetеd grants in the structure of transfers has increased. The growth of expenditures of the consolidated budgets of the subjects of the Russian Federation practically follows the dynamics of revenue – slightly lags behind the rate of inflation. If there is a reduction in the volume of state sub-federal debt of all subjects of the Russian Federation, then in 21 regions the volume of debt has increased. The growth of the sub-federal debt occurred both due to an increase in the volume of budget loans and at the expense of expensive bank loans.

Does industrial agglomeration curb corporate carbon emissions? A perspective of financial constraints

This paper investigates the impact of industrial agglomeration on corporate carbon emissions in China. We measure the extent of industrial agglomeration utilizing distance-based continuous spatial measurement, differentiating between the quantity and scale of agglomeration. Using a panel of 7895 firm-year observations from 2007 to 2019, our findings indicate that regional industrial agglomeration contributes to a reduction in carbon emissions for firms located within those regions. Specifically, this reduction is primarily achieved through the alleviation of corporate financial constraints. We demonstrate that industrial agglomeration facilitates firms in accessing informal finance (e.g., trade credit) more effectively than formal finance (e.g., bank loans). Additionally, we find that the effect of industrial agglomeration on reducing carbon emissions is more pronounced for firms with higher environmental responsibility, while it is diminished in regions with greater marketization. The carbon reduction effect is also more significant for heavily polluting firms and those situated in areas with stricter environmental regulations. Furthermore, our study reveals that the implementation of green credit policies may weaken the carbon reduction effect of agglomeration by limiting access to financial resources. The robustness of our main results is confirmed through the Bartik-IV test and other robustness checks. Taken together, our findings suggest that industrial agglomeration can effectively lower corporate carbon emissions by easing financial constraints, offering valuable insights into strategies for enhancing corporate environmental performance.

The power of the many: how retail investor attention reshapes corporate trade credit and bank loans

Our study on China-listed firms from 2011 to 2022 reveals that heightened retail investor attention significantly decreases corporate trade credit and boosts bank loan accessibility. This effect is consistent across different robust checks, such as propensity score matching and industry/regional shock controls. We find that this attention enhances information transparency, influencing both trade credit and bank loans. Notably, the impact is more pronounced in the absence of professional information intermediaries. This research deepens the understanding of retail investor attention's economic impact, shedding light on the substitutive relationship between trade credit and bank loans.

STRATEGI DIVERSIFIKASI PORTOFOLIO: ANALISIS DAMPAK RISIKO DAN KEUNTUNGAN PADA BANK KONVENSIONAL DAN SYARIAH MILIK NEGARA DI INDONESIA

This research examines the relationship between credit portfolio diversification and the risk and return of state-owned banks (Bank BUMN) from 2019 to 2023. Using multiple linear regression analysis, it evaluates the impact of the Herfindahl Hirschman Index (HHI) on credit or financing risk (NPL and NPF) and bank returns (ROA, ROE) among state-owned banks listed on the Indonesia Stock Exchange. Control variables include bank size, loan or financing to deposit ratio (LDR and FDR), and equity to total asset ratio (ETA). The results show that credit portfolio diversification reduces credit risk in BUMN banks, suggesting that spreading credit exposures across sectors can mitigate risk. However, diversification does not significantly affect bank returns (ROA, ROE). Control variables such as bank size, LDR and FDR, and ETA show no significant impact on credit risk, ROA, or ROE. This study provides empirical evidence on the effectiveness of financing portfolio diversification in managing credit risk within state-owned banks, considering Islamic banking principles. While diversification can mitigate credit risk, its impact on profitability requires careful consideration. BUMN banks should implement robust risk assessment frameworks and strategic oversight to maximize diversification benefits while maintaining financial stability and adhering to ethical and Sharia-compliant financial practices.

MAIN DIRECTIONS OF BANK LOANS IN CREDIT MARKET

Financial analysis in credit market and commercial banks, which have been an important factor of economy and human life and activity currently, study of financial-economic results of activity of a bank, determination of main directions of development of the bank and main factors of financial business processes, determination of purpose-oriented special knowledge and growth rates, etc. Different economic sources, internet materials have been applied as a theoretical and methodological basis. As systematization of loans in bank lending system is a theme of the research, methods such as analysis, induction and deduction have been used. Main scientific innovation that has been put forward: In this field, one of the most important issues is, certainly, organization of organization system of information issues, which have the most significant role in determining and implementation of successful demand and supply of bank loans in credit market and main directions of bank loans in credit market. Results of the research: Finding perspective improvement ways of commercial banks Development of credit system, directly improved by banks, significantly positively effects progress of country economy Information tools and technology play the most important role in improving credit market now.

The imprint effect of initial institutional environments and bank financing in family businesses

The initial imprint embedded in family business origin provides us with favorable support for identifying how past institutional environments and then current governance characteristics influence financing. This study investigates the influence of family business origin on loan borrowing, and finds that restructured family firms (RFFs), which are formed through the restructuring of collective-ownership enterprises, are likely to obtain more loans compared to entrepreneurial counterparts (EFFs). The effect varies with local marketization, family control rights, and intergenerational succession. Our findings suggest that restructured family firms have a sounder modern enterprise system, less information asymmetry, and consequently pose less credit risk, which allows them to access loans more easily. In addition, institutional differences stemming from the origin of the firms affect the composition and cost of bank financing. RFFs outperform EFFs in terms of the size of non-local bank loans and the cost of loans. Overall, this study shows that the institutional environment of family firms at the founding stage has a long-term impact on future financing.

Abnormal Temperatures, Climate Risk Disclosures and Bank Loan Pricing: International Evidence

Abnormal Temperatures, Climate Risk Disclosures and Bank Loan Pricing: International Evidence

Effects of Commercial Bank Loans on SME Growth: The Case of Morogoro Municipality, Tanzania

Effects of Commercial Bank Loans on SME Growth: The Case of Morogoro Municipality, Tanzania

Doing good in times of need: Green finance policy and strategic corporate social responsibility

This study investigates the effect of a green finance policy on the corporate social responsibility (CSR) activities of firms in heavily polluting industries. Based on the 2017 policy of the People's Bank of China (PBC), which incorporates green finance into its macroprudential assessment system, we employ the difference-in-differences method to show that firms in heavily polluting industries have significantly improved their CSR performance after the implementation of the PBC's green finance policy. In response to the negative effect of the PBC's policy on their financial position, affected firms strategically engage in CSR activities in the hope that appearing socially responsible will help them recover from their adverse position. Furthermore, firms in heavily polluting industries that enhance their CSR performance after the PBC's policy have benefited from reduced bank credit transaction costs and have obtained more bank loans. The improvement in CSR performance is mainly concentrated in firms that are non-state-owned, small in size, highly dependent on external financing, and receiving more media attention. Overall, this study reveals a social consequence of the PBC's green finance policy on the CSR performance.

“A Study On Loans And Advances At DavangereHarihara Urban Sahakara Bank”

One important part of the Davangere-Harihara Urban Sahakara Bank's business is meeting the financial requirements of its clients via loan and advance services. The bank's loan portfolio is characterized by a high percentage of customers being assessed to pay tax, indicating a stable customer base. The majority of customers avail loans within a short period, suggesting a demand for quick access to credit. The bank's interest rates are deemed satisfactory by a significant majority of customers, and the loan approval process is generally well-received. However, there is room for improvement in providing clear repayment information and reducing paperwork. Customer satisfaction with the bank's services is high, with a significant percentage of customers willing to take another loan from the bank. This loyalty can be leveraged by offering incentives and loyalty programs. To enhance its loan and advance services, the bank should focus on reducing processing time, improving the loan approval process, and providing clear repayment information. Additionally, offering flexible repayment options and competitive interest rates can help attract and retain customers