Credit Guarantee Institutions Research Articles

Legal Implications of The Use of Permit to Open State Land as Collateral for Debt

Indonesia is a country abundant in natural resources and human resources, aiming to provide prosperity for its people. The need for credit and the provision of credit facilities require collateral. The government has established a credit guarantee institution capable of providing legal certainty and legal protection. One of these institutions is the Mortgage Rights institution regulated by Law Number 4 of 1996 concerning Mortgage Rights on Land and Related Objects (UUHT). In the city of Balikpapan, East Kalimantan, there is a legal product in the field of land management based on regional autonomy, adhering to the principle of decentralization that grants authority through the enactment of Regional Regulation Number 1 of 2014 concerning State Land Opening Permits, known as "Izin Membuka Tanah Negara" (IMTN). IMTN is a permit granted by the Mayor or designated official to individuals or legal entities to open and/or utilize state-owned land directly controlled by the government. In this Regional Regulation, it is explicitly stated that IMTN cannot be used as collateral for debt transactions. However, in Balikpapan, there are still cooperatives or financing institutions that accept IMTN as collateral, binding it with a credit guarantee that is subsequently accompanied by an additional agreement known as "Surat Kuasa Membebankan Hak Tanggungan" (SKMHT). The existence of collateral with IMTN as the object is not permitted, as IMTN serves as administrative evidence for the initial proof of land rights ownership in Balikpapan. IMTN can later be processed to become land rights (Ownership Rights, Building Utilization Rights, Right to Use), which has led Notaries and Banks to accept IMTN as collateral.

Maintaining the Sustainability of the Regional Credit Guarantee Institution in Indonesia

This study aimed to analyze the effect of internal and macroeconomic factors on the financial performance of Regional Credit Guarantee Institutions (PT. Jamkrida) in Indonesia. Internal factors included: guarantee risk, gearing ratio, liquidity, and asset management, while macroeconomic includes: gross domestic product and inflation. The population was PT. Jamkrida in Indonesia, which were 18 in total, of which 16 met the requirements as the sample. The type of data was secondary data sourced from the PT. Jamkrida’s Annual Financial Report with observations for 2014-2020. The data analysis technique used was multiple regression analysis. This result: internal and external factors affected financial performance PT. Jamkrida in Indonesia. This result also proved the important role of the local government in maintaining PT. Jamkrida's capital to ensure that bank loans to SMEs run well. This study contributes to the RBV theory by providing empirical evidence of the influence of internal resources and external conditions on PT. Jamkrida’s financial performance. But, this study has limitations as indicated by the results of an adjusted R square of 13.8%, so it is possible 86.2% of other variables can explain their effect on financial performance. Therefore, it offers opportunities to add other factor specifications, or other methods Keywords: guarantee risk, gearing ratio, liquidity, asset management, GDP, inflation, and financial performance

The Optimal Leverage Ratio of Credit Guarantee Institution: Case of Local Credit Guarantee Foundation in South Korea*

This study aims to estimate the optimal leverage ratio of the Local Credit Guarantee Foundation (hereafter LCGF), which plays an important role in financing small and micro businesses in South Korea. The optimal leverage ratio refers to the rate of credit guarantee balance to capital at which the guarantee system can be soundly and stably operated while meeting the credit guarantee demand. The optimal leverage ratio of LCGF is derived using three methods: a sustainable budget constraint-based leverage ratio, an institutional objective maximizing leverage ratio, and a BIS ratio-based leverage ratio. Assuming that the average trend of the past ten years is maintained, the sustainable leverage ratio is evaluated to be 7.55. In addition, the institutional objective maximizing leverage ratio is estimated to be 7.24. When the optimal BIS ratio increases from 11.5% to 14%, the BIS ratio-based leverage ratio is evaluated to be between 8.39 and 10.21. The leverage ratio at the end of 2020, which was 9.16, is appropriate when using the BIS ratio, considering the COVID-19 crisis. However, it is judged to be slightly higher than the sustainable leverage ratio or the institutional objective maximizing leverage ratio.

АКТУАЛЬНІ ПРОБЛЕМИ ФУНКЦІОНУВАННЯ МАЛИХ ПІДПРИЄМСТВ У СУЧАСНИХ УМОВАХ

The article states that the state of the modern small business is characterized by negative financial and economic and social indicators. The negative impact on the development of this sector with military clashes and conflicts. Therefore, there is need for reform and renewal of the state mechanism to support small businesses, taking into account the negative factors of the environment. The purpose of the article is to examine the characteristics of development at the small business in Ukraine under present conditions, analysis of the major deficiencies and determine the prospects of small businesses. Determined that there is a clear relationship trends and trends in small business of scientific and technological progress. It is noted that in European countries is dominated by small and medium enterprises, their share in the total number of enterprises is 99.8%, two-thirds of the employed population (65.8%) are employed in small and mediumsized enterprises, 58.8% of the annual turnover in Europe and accounts for this sector. However, small businesses Ukraine missed its development potential and does not perform assigned tasks. This is due to insufficient attention of local authorities in this sector, namely the lack of permanent tracked the development of such enterprises; imperfect administrative support; inefficient infrastructure software and more. In this regard, it is necessary to find innovative means of administrative support and market conditions such enterprises unstable environment. The main task of the Ukrainian authorities is, first, to carry out regulatory reform, which will create a qualitatively new system of state regulation that will protect both entrepreneurs and consumers. Secondly, it is necessary to reduce the number of permits for doing business, as Ukraine lags behind in this component. Third, it is necessary to create a state credit guarantee institution in order to encourage commercial banks to lend to small businesses with minimal financial risk. Having analyzed the state and dynamics of the general parameters of small business in Ukraine, it should be noted that they do not meet the needs of the Ukrainian economy. The development of small business in Ukraine is much lower than in developed countries. During a coronavirus pandemic, where most small businesses have either closed or are not operating at full capacity, government assistance is important.

Jaminan Hak Atas Tanah Sertifikat Yang Diperoleh Dari Pewarisan Dalam Pembebanan Hak Tanggungan

The role of financial institutions or banks is very important in meeting the needs of funds for the community, one of which is by providing credit. The practice of granting credit from the Bank is known as a method called Mortgage Rights as a credit guarantee institution to the community in order to develop their business, in which the certificate of ownership of land is given to a notary to check the authenticity of the certificate before being encumbered. Certificate checks are carried out at the The Ministry of Agrarian Affairs and Spatial Planning/National Land Agency office in accordance with the location of the certificate land. The certificate obtained from the inheritance usually results in conflict if one of his heirs does not approve of the existence of a debt owed by one who collateralizes the certificate.This study uses the socio legal method which is to examine the implementation or implementation of positive legal provisions (legislation) and contractual factual in every particular legal event that occurs in the community in order to achieve the goals that have been determined.The results of the study can be concluded that the imposition of Underwriting Rights on certificates obtained from inheritance if the beneficiary has not been divided or has not yet returned the name can be done if all the heirs come to approve and know through the signature as proof of approval, if there is one heir who does not want to sign or do not agree, then the imposition of Mortgage Rights cannot be imposed. There are 2 (two) legal protections for creditors over disputes over ownership of land rights that are encumbered with Mortgage Rights. Ie, preventive legal protection (prevention) and repressive legal protection (coercion). If the creditor has tried through preventive measures and ultimately the credit is problematic, then the creditor will use repressive measures. Repressive measures that will be carried out are efforts to save credit through non-litigation.

PREPARING THE ASEAN ECONOMIC COMMUNITY (MEA) WITH THE DEVELOPMENT STRATEGY OF SMALL AND MEDIUM ENTERPRISES (UMKM) TO GET BUSINESS CREDIT IN KELURAHAN CIBADUYUT BANDUNG

From the results of interviews and preliminary observations that the development of Small and Medium Enterprises is essentially a shared responsibility between the government and society. In order to support the empowerment and development of Micro, Small and Medium Enterprises, especially in encouraging the distribution of credit to Micro, Small and Medium Enterprises in Cibaduyut Urban Village, for the development of Micro, Small and Medium Enterprises in Cibaduyut Village, Bandung, the strategies included in the first Bank Partner Financial Consultants in fostering and mentoring Micro Small Enterprises and Medium prospects who apply for business loans; second, socializing profit sharing or venture capital financing; third Increasing the participation of credit guarantee institutions for Micro, Small and Medium Enterprises and prospects who are faced with collateral requirements. It is expected that with the implementation of the above strategies, Micro, Small and Medium Enterprises will no longer experience difficulties in the submission of business capital loans from Credit Distribution Agencies. From each solution above, it is building and mentoring Micro and Small and Medium Enterprises, prospects who will apply for business loans. The results of the study showed that the community in the Cibaduyut Village with the optimization of the role of the Bank Partner Financial Consultant (KKMB), the requirements and procedures established by the credit channeling institutions, were no longer an obstacle for Micro and Small Businesses in obtaining business capital loans. The success of this approach will be seen from the increasing number of bankable Micro, Small and Medium Enterprises and obtaining business capital loans, and having a Bank Partner Financial Consultant (KKMB) operating on a business (mutually beneficial) basis so that it can finance itself.

동북아시아지역 신용보증기관의 효율성 분석과 정책적 함의 : 일본, 대만, 한국 신용보증기관의 비교분석

동북아시아지역 신용보증기관의 효율성 분석과 정책적 함의 : 일본, 대만, 한국 신용보증기관의 비교분석

UKM Development Business Loan

The aim for this paper is a) to identify the difficulties and problems faced by UKM in obtaining venture capital loans. b) Determining the strategy of development of UKM through increased ease of working capital credit facilities through credit channeling institution.
 Design/methodology/approach : This type of research is exploratory. Types of data used are data collected by primary and save a list of questions.
 Findings : The results are as follows: More than 50% of UKM have difficulty capital. UKM that utilize external capital sources of credit channeling institution only at 17.50%. Reason UKM have not utilized most of the credit is a factor of the policies, terms and loan interest rates are quite high..
 Research limitations/implications : Location of the research done on UMKM in the district of Nganjuk.
 Practical implications : there are several strategies that can be done are (1) Optimizing the role KKMB in nurturing and mentoring the UKM prospect will apply for business loans, (2) promoting financing for results or venture capital, (3) enhance the role of credit guarantee institutions for UKM prospects will hit their collateral requirements. It is expected that with the implementation of the above strategies, the prospects of UKM no longer have difficulty in obtaining loans from the venture capital Credit Channeling Institutions.
 Originality/value : UKM provide a significant contribution to employment, amounting to 99.6 percent. Meanwhile, the contribution of UKM to Gross Domestic Product (PDB) by 56.7 percent. In the process of economic recovery of Indonesia, the UMKM sector has a strategic role and importance that can be viewed from various aspects

Assessing credit guarantee companies in China: Applying a new framework

In this paper, we developed a framework for assessing the quality of credit guarantee institutions and then applied the framework to a sample of guarantee companies in China. Our results suggest that whereas macroscopic environments significantly impact the credit guarantee sector in China, scale, experience, and potential compensatory risk are the most important indicators of competence or performance capability of individual credit guarantee companies. We find that the current situation of the credit guarantee industry in China is unsatisfactory. Well-performing companies are scarce and the gap between those ranking at the top and those at the bottom is significant.

Rekonstruksi Kelembagaan Ekonomi dengan Mengoptimalkan Peran Pedagang Desa

This study is aimed to analize the role of middlemen in rural economic institution and formulate the economic development model through optimalization the role of middlemen. This study was done by conducting literature research. Data were analized by using qualitative method. The results of study conclude that middlemen have strategic positions in rural economic development although their role has negative and positive side. In evolving the positive side, there must be other institution which has capability to substitute part of middlemen role. That is microfinance institution (MFIs) which also play the role as an empowerment institution. In loan mechanism, the middlemen can be functioned as a credit guarantee institution. Credit guarantee from middlemen is not only as a contract in agriculture product marketing, but also as the supervision way to create obedience in loan repayment by farmers. The implementation of this pattern is purposed to nurture the social capital in rural economic system.

English

The research was to understand the purpose of understanding of the authorities, banking, and abuser of Small Medium Enterprises (UMKM). Business organizations, community leaders, in the building of UMKM development strategy. This research approach is qualitative by the method of Phenomenology of approach by understanding the perspectives of ethics within the emic and interpret the disclosure of informants involved in this research. The unit of analysis in this research are: Individual businessmen of UMKM in the fields of food and beverage industry, individual government officials from the Department of industry, cooperatives and regional SME research, Individual figures of Individual regions, the Business Banking Officials, individuals representing community leaders who understand the problem of UMKM. The data collection methods used are: observation, in-depth Interviews, and documentation. The research instruments the researcher as the main instrument. Research findings is that for member access to capital, access technology, and the market for UMKM, the Government must establish a credit guarantee institutions, build partnerships with banks, State-Owned Enterprises, BUMB, large companies, Commerce, cooperatives, universities and NGOs. In addition to the member's access for marketing, the Government should establish a joint marketing Center for UMKM in the form of an outlet. favor and absolute protection against UMKM so that the Government can develop on an ongoing basis from time to time. To develop UMKM continuously especially for UMKM engaged in the food industry, the Government should build the development strategies in the form of partnerships between large and UMKM entrepreneurs with all stakeholders in the area of South Sulawesi.

중소기업간 금융결제를 지원하는 e-MP 서비스 활성화 방안

B2C의 "신용카드"를 대체할 만한 "결제수단"으로 2001년 신용보증기금과 은행, (물류업체), e-MP(Market Place)가 참여하여, 기업간 e-MP(기업간 전자결제 결제 시스템)를 통한 전자상거래에 의한 구매를 신용보증기금이 보증해 주는 B2B 전자상거래보증제도를 도입하였다. 기업간 전자상거래를 지원하는 전자결제시스템인 e-MP 서비스는 지난 10년 동안 운영되어 중소기업의 성장에 많은 기여를 하였다. 기업 간 전자상거래보증은 구매기업에게 거래한도 확장으로 안정적인 구매처를 확보하고 업무 프로세스 개선을 통한 기업 경쟁력 강화에 기여하였다. 그러나, 신용보증기관의 보증지원을 기반으로 한 사업으로서 규모의 한계를 보유하고 있다. 신용보증기관의 보증지원을 기반으로 한 사업으로서 규모의 한계를 극복하기 위해서는 정부의 중소기업에 대한 직접 또는 간접지원의 강화 운영을 e-MP 사업기반으로 해야 한다. 또한 e-MP서비스를 통한 새로운 모델 개척이 필요하다. 기업간 전자상거래 활성화 측면 뿐만 아니라 e-MP의 새로운 수익모델을 위해 신용보증기관이 직접 개입하여 운영하는 기업간 통합온라인장터 구축과 이를 활용하는 기업에게 구매자금을 동시에 제공하는 모델에 대한 검토가 필요하다. The B2B e-commerce assurance system supports e-commerce purchases by Credit Guarantee Fund. This process seeks to replace a variety of current systems, including B2C, the credit card payment method on B2B, 2001 Credit Guarantee Fund and the Bank, logistics, e-MP (Market Place), and Business-to-business e-MP (business-to-business electronic payment settlement system). Over the past 10 years of its operation, the e-MP service (B2B e-commerce electronic payment systems) has contributed much to the growth of SMEs. The development of business-to-business e-commerce transactions systems and limits have provided a stable purchasing platform, improving corporate competitiveness. However. the project-based scale of credit guarantee institutions has limitations. To overcome these limitations, we propose a new model of direct or indirect government support for small business e-MP projects. This new model will support the B2B electronic commerce by allowing it to directly involve guarantee institutions directly in B2B online transactions. Therefore, this study urges government backing of the SME based B2B online business model with e-MP service.

A Study on the Efficiency Assessment of Medium and Small Enterprise Credit Guarantee Institutions through Bootstrap-DEA.

A Study on the Efficiency Assessment of Medium and Small Enterprise Credit Guarantee Institutions through Bootstrap-DEA.

Applying an Efficiency Measurement Method to the Public Sector: Focused on Case Analysis of Domestic Credit Guarantee Institutions for Small and Middle Enterprises

Applying an Efficiency Measurement Method to the Public Sector: Focused on Case Analysis of Domestic Credit Guarantee Institutions for Small and Middle Enterprises

Comparison of Effects from Different Institutions: Public Credit Guarantee in Korea*

We aim to compare the activities of the two main credit guarantee institutions in Korea. There has been mounting criticism that although these institutions were mandated to play different roles in financing small and medium-sized enterprises (SME), their operations are, in fact, similar, and many SME receive overlapping support from both institutions. Using the propensity score matching method (allowing for multiple, mutually exclusive support scenarios) to compare the effects of PCG on different institutions, the present study provides suggestions to help the government make decisions regarding the consolidation of PCG funds. The results suggest that the institutions function differently and target different SME. However, overlapping support enables firms to expand their sales only, indicating the existence of inefficiency in the case of overlapping support to firms.

Risk-Sharing Mechanism Theoretical Research between Bank and Credit Guarantee Institution Cooperation under Asymmetric Information

It constructs bank and credit guarantee institution cooperation risk-sharing model with expected utility and mathematical optimization method based on risk-sharing theory. It shows that risk-sharing ratio between credit guarantee institution and associated bank is rising with the increase of safety assets return and default repayment rate and the decrease of loan rate of credit guarantee rate, while, amplification of credit guarantee could form inflection with the change of default repayment rate and it is the default recovery rate, guarantee rate, realizable value rate of counter-guarantee measure and loan rate of credit guarantee products positive that effect to amplification of credit guarantee.

On Perfecting the Credit Guarantee System of China's Small & Medium-Sized Enterprises

The poor credit and short of funds turn into main factors disturbing SMEs development. In order to solve SMEs’ financing issue, to set up perfect credit guarantee tends to be more important. Therefore, it is necessary to build and perfect a legal regulation system for SMEs’ credit guaranty, making best use of the government’s effects on SMEs’ credit guarantee system, perfecting SMEs’ credit guarantee market mode, and constructing a scientific operation mechanism for the credit guarantee institution.

A method for designing CDO conformed to investment parameters

AbstractWe propose a method for designing CDOs (Collateralized Debt Obligation) that meets investor needs regarding CDO attributes. It is demonstrated that adjusting the attributes (credit capability and issue amount) of CDOs to investors' preferences causes a capital loss risk that the agent takes. We formulate a CDO optimization problem by defining an objective function using the above risk and setting constraints that arise from investor needs and a risk premium that is paid for the agent. Our prototype experiment, in which fictitious underlying obligations and investor needs are given, verifies that CDOs can be designed without opportunity loss and dead stock loss, and that the capital loss is not more than a thousandth part of the amount of annual payment under guarantee for small and medium‐sized enterprises by a general credit guarantee institution. © 2007 Wiley Periodicals, Inc. Electr Eng Jpn, 161(4): 20– 28, 2007; Published online in Wiley InterScience (www.interscience.wiley.com). DOI 10.1002/eej.20581

A Method for Designing CDO Conformed to Investment Parameters

We propose a method for designing CDO (Collateralized Debt Obligation) that meets investor needs about attributes of CDO. It is demonstrated that adjusting attributes (that are credit capability and issue amount) of CDO to investors' preferences causes a capital loss risk that the agent takes. We formulate a CDO optimization problem by defining an objective function using the above risk and by setting constraints that arise from investor needs and a risk premium that is paid for the agent. Our prototype experiment, in which fictitious underlying obligations and investor needs are given, verifies that CDOs can be designed without opportunity loss and dead stock loss, and that the capital loss is not more than thousandth part of the amount of annual payment under guarantee for small and midium-sized enterprises by a general credit guarantee institution.