Credit Guarantee Research Articles

Enhancing Agricultural Credit Guarantees in China’s Agricultural Value Chain Through Relationship Contracts: A Study on Risk Prevention Mechanisms

Enhancing Agricultural Credit Guarantees in China’s Agricultural Value Chain Through Relationship Contracts: A Study on Risk Prevention Mechanisms

Online Guarantee System With Soma Methods

Web service-based applications are applications that use Restful to exchange data over the network and interact directly with other applications. One of the advantages of web service-based applications is that many applications can access services on different platforms. This is very beneficial in the business sector if a company or organization builds applications on a large scale, and application development is carried out in stages. With the characteristics of web service-based applications, namely a neutral platform, it is very easy to integrate systems when the development process is carried out in stages. Therefore, this research will design a web service-based application based on business processes, especially Kredit Usaha Rakyat (KUR) between PT ABC Credit Guarantee Company and PT Bank XYZ. The methods used are Thomas Erl's SOA methods and SOMA. The results obtained are a method that will be a guide for producing web service-based KUR Online Guarantee applications with PT Bank XYZ.

Research on enterprise financing credit based on soft and hard information under the background of blockchain

Under "accelerating the formation of a new development pattern of domestic circulation and domestic and internationaldouble circulation mutually promoting", high-tech enterprises, as an important role in promoting scientific and technological innovation and economic development, are facing the dilemma ofdifficult and expensive financing. This paper establishes acharacteristic evaluation and credit guarantee systembased on big data credit model to explore the difference ofsoft and hard informationon financing of high-tech enterprises in Anhui Province under the background of double circulation. Taking 131 high-tech enterprises in Anhui Province as samples, this paper analyzes the influence of unstructured soft information and structured hard information on credit evaluation and its intensity byhierarchical linear regression model. The results show that soft and hard information indexes have significant positive effects on credit risk of high-tech enterprises, and soft information has more obvious effects on small and medium-sized high-tech enterprises.

Manfaat Kredit Usaha Rakyat Bagi Pelaku Usaha Kecil Dan Menengah Di Kecamatan Langke Rembong Kabupaten Manggarai

This research aims to explain the benefits of providing BRI Bank People's Business Credit loans for Small and Medium Enterprises. This research was conducted at Bank Rakyat Indonesia because it is one of the banks that distributes the KUR assistance program. This research uses primary data and secondary data. The research results show the benefits of providing BRI bank KUR assistance to SMEs, namely that small and medium business actors are helped by getting capital to open a business, develop businesses that are already running and can provide employment assistance for other people. Obstacles that small and medium business actors often face when applying for small and medium business credit assistance include incomplete requirements, bad personalities and inappropriate credit guarantees. It is hoped that the provision of people's business credit loans will be able to provide benefits to small and medium business owners, both for the businesses they run and to fulfill other economic needs.

Environmental regulation and corporate financial risk: The role of credit guarantees

This research explores the relationship between environmental regulation and corporate financial risk in the face of increasing public environmental concerns worldwide. Taking advantage of public-listed firms in Shanghai and Shenzhen stock markets from 2010 to 2022, this study finds strong evidence that environmental regulations inversely affect corporate financial risk after controlling for various firm-specific variables. The findings are robust to a series of robustness tests. In addition, this study further demonstrates that credit guarantees positively moderate the relationship between environmental regulation and firms’ financial risk. Overall, our study contributes to the fast-growing literature on the impact of environmental-related issues on firm outcomes and generates profound policy implications.

O2O 플랫폼 품질이 자영업자의 디지털 전환에 미치는 영향

Purpose - With the increase of non-face-to-face activities due to the spread of COVID-19, O2O industry has grown rapidly which reduces contact points between suppliers and consumers. O2O platform is now recognized as an indispensable channel of distribution, but the voice is getting louder that it is necessary to check how it contributes to the performance of suppliers or how its fee system or contract terms affects the expansion of O2O industry as the leading companies tend to monopolize the market. Design/methodology/approach - In this study, the scope was limited to the restaurant industry in which transactions are the most active among the O2O industry and a regression analysis was done on 775 businesses that had used guarantor service from the Seoul Credit Guarantee Foundation. Findings - Analysis on the impact of O2O platform system, information, and service quality on the business performance of the sole proprietors revealed that the system quality represented by ease of use and the information quality determined by level of timely, accurate and reliable information provided to the consumers have a statistically significant effect on the improvement of business performance. In addition, the effect of business performance on the loyalty measured by the likelihood of users continuing to use the service as well as recommending it to others was moderated by the satisfaction with contract terms, not by the fee system. Research implications or Originality - Although the number of O2O platform providers has increased manyfold, the membership rate is no more than 20%, which means that the small business owners are still struggling with digital transformation. In order for the O2O industry, which is now commonplace, to form a healthy ecosystem that satisfies both suppliers and consumers, the standard contract guidelines that are acceptable to both parties must be established and the O2O providers must offer services that help suppliers to improve performance.

Credit guarantee, financing structure, and firm ESG performance

This empirical research investigates the complex relationships among credit guarantee mechanisms, financing structures, and environmental, social, and governance (ESG) performance among corporations. The study employs a rich dataset spanning corporations from 2000 to 2022. Econometric analyses reveal nuanced associations, including unexpected negative correlations between ESG combined scores and environmental innovation. Static and dynamic panel modeling highlights the need for robust statistical adjustments. This study contributes to an understanding of the multifaceted dynamics that shape corporate behavior, emphasizing the importance of aligning financial decisions with sustainable practices. Future research should conduct causal exploration, qualitative methodologies, temporal analyses, global comparisons, and industry-specific studies.

Effectiveness of Interest Subsidies in Credit Guarantee for Small Businesses

Effectiveness of Interest Subsidies in Credit Guarantee for Small Businesses

The Impact of Credit Policy Environment on Poultry Production in Nigeria

The research gave empirical data on the correlation between poultry production index and the credit policy environment in Nigeria. An autoregressive distributed lag (ARDL) bound test approach was employed to establish co-integration between series. The estimated long and short-run models parameters demonstrated stability, best quality, efficiency, and unbiased. The findings showed that in the long run, the commercial bank loan to the agricultural sector and domestic credit to the private sector had a significant positive influence on poultry production index while agricultural credit guarantee scheme loan to poultry subunit and lending interest rate exhibited negative relationships. In the short run, the current year coefficient of lending interest rate, the agricultural credit guarantee scheme loan to poultry subunit and domestic credit to the private sector had significant negative correlation with the poultry production index. However, the commercial bank credit to the agricultural sector showed positive effect on poultry production in the short run. The implication of the finding justifies the need to increase the commercial bank credit to the agricultural sector and domestic credit to private sector as a strategy to boost poultry production. Also, the agricultural credit guarantee scheme fund should be reassessed and modify to render it initial objectives. The lending rate should be deliberately lowered to increase credit access by the poultry farmers.

Factors Limiting Credit Uptake among the Youth in Kenya

Purpose: This study explores the factors limiting credit uptake among Kenyan youth, a demographic comprising about 75% of the country's population yet facing high unemployment and barriers in accessing credit to start businesses.
 Methodology: The study employed a qualitative design using semi-structured interviews with 20 Kenyan youth entrepreneurs (ages 18-35) who sought credit, and four focus groups with 6-8 diverse participants. Purposive sampling recruited participants who pursued credit within the past two years. Thematic analysis identified themes from the inductively coded interview and focus group data. Ethical protocols were followed. Validity and reliability were enhanced through triangulation, member checking, maintaining an audit trail, and strategies to minimize bias.
 Findings: The inadequate funding by easily accessible credit services such as the Hustler Fund is one of the notable impediments hindering the youth from starting small-scale business enterprises. Other barriers include stringent borrower age, business operational lifespan, and employability and minimum wage limit eligibility criteria.
 Unique Contribution to Theory, Practice and Policy: The study recommends government partnerships with private lenders, relaxed eligibility criteria for youth, credit guarantees or collateral support, expansion of low-risk credit products, and initiatives to build youth's banking histories. These recommendations integrate theoretical perspectives on financial literacy, social influences, and individual or systemic factors shaping credit behaviors. The study contributes to practice by proposing context-specific interventions tailored to Kenyan youth. Policy-wise, it aims to empower this valuable economic resource by improving credit access and harnessing their entrepreneurial potential.

The mechanism of enterprise credit guarantee risk contagion considering ESG

We establish an equation to reflect the relationship between ESG and the infection probability of enterprise system, and then we construct an interaction model between ESG and enterprise credit guarantee risk contagion. Additionally, based on the actual data, the simulation and the sensitivity analysis of important parameters are performed. The study found that ESG can effectively control the enterprise credit guarantee risk contagion. In addition, the following measures are of great significance to control the contagion, including refining the ESG rating, incorporating indicators related to enterprise credit into the ESG evaluation system, improving the supervision mechanism, enhancing the ability of enterprises to resist risk, giving appropriate external intervention guidance, completing the enterprise guarantee system and improving the market exit mechanism. Furthermore, the greater the impact of ESG on the infection probability of enterprise system, the greater the sensitivity of transmission rate and cure rate. Hence, the measures should be taken in time to reduce the transmission rate and raise the cure rate while improving the influence of ESG.

Examining supply chain financing: A comparative and coordination analysis under a buyback contract

This paper focuses on financing schemes for a supply chain with high salvage values of unsold products. Combining the buyback contract with a partial credit guarantee (PCG) contract and trade credit (TC) contract, we propose two financing schemes, PCG-Buyback and TC-Buyback, to provide flexible financing services for a capital-constrained retailer and obtain equilibrium strategies of each supply chain member. Furthermore, for PCGBuyback, this paper obtains a Pareto coordination frontier consisting of the credit guarantee coefficient and the buyback price at different initial capital levels, which is more flexible to achieve supply chain coordination. Finally, we analyze the manufacturer’s strategic choices of PCG-Buyback and TC-Buyback in terms of credit guarantee coefficient, buyback price, and financing rate. Our results show that PCG-Buyback is the optimal financing scheme for the manufacturer when both the credit guarantee coefficient and buyback price (or financing rate) are low; otherwise, TC-Buyback is the dominant strategy. This study explores how the risk-sharing mechanism combination of PCG and buyback contracts can provide a more flexible approach to supply chain coordination. Additionally, it highlights the significance of the manufacturer selecting a better financing scheme based on its individual characteristics.

Economic impact of a credit guarantee scheme: evidence from Spain

ABSTRACT Credit guarantee schemes have emerged as one of the preferred choices for policy makers concerned about financing small and medium-sized enterprises (SMEs). This article assesses the economic impact of a credit guarantee scheme by using data from a Spanish regional guarantee company for the years 2019 and 2020. We employ an input–output (IO) model, which is a robust methodology that has not been previously used in this type of study. Our findings confirm that a credit guarantee scheme has a positive impact on economic growth, as evidenced by increases in output, gross domestic product (GDP), and employment. We also evaluate the support measures implemented by the regional government to reduce the liquidity shortfalls experienced by SMEs during the COVID-19 pandemic, corroborating that during crises, government financial support policies to guarantee systems yield positive macroeconomic effects in the region in which they are implemented.

Financial inclusion and impacts on agriculture in Delta State, Nigeria

The study appraised financial inclusion and impacts on agriculture in Delta State, Nigeria. Delta State, located in the southern region of Nigeria, is known for its rich agricultural potential. Agriculture is a major source of livelihood for the majority of its population, contributing significantly to both food security and economic growth. Nigeria introduced National Financial Inclusion Strategy (NFIS) in 2012. Besides, interventions of financial inclusion packages in Nigeria by some corporate financial inclusion organizations include: Agent Banking and Mobile Money, Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL), Financial Literacy and Education Programs, Agricultural Credit Guarantee Scheme Fund (ACGSF) and Microfinance Institutions (MFIs). These organizations impacted the Delta State agriculture in the areas of cassava farming, oil palm production, rice cultivation, poultry, fisheries and aquaculture, agribusiness and processing and agricultural diversity. Such Impacts were obvious in food security, poverty reduction, women's empowerment, market access and value chain integration, risk mitigation, access to agricultural inputs, income diversification and increased agricultural productivity. Noticeable financial inclusion challenges in Delta State's agricultural sector were limited access to financial services, insufficient financial literacy programmes and inadequate rural infrastructure. It was concluded that financial inclusion in agriculture in Delta State is a cornerstone for the state's economic development and the well-being of its citizens. Among the recommendations given, it was emphasized that strengthening financial education system should be prioritized in agriculture.

Financial Performance of Dairy Cooveratives in West Java-Indonesia During the Covid-19 Pandemic and Foot-and-Mouth Disease Outbreak

Dairy cooperatives play an important role to collect milk production from dairy farmers, distribution of milk to the milk processing industry, concentrate supply services, credit guarantees, artificial insemination and animal health services, savings and loan services, and various other services carried out by cooperatives. This condition causes the dependence of dairy farmers on cooperatives to be quite high. External factors can influence cooperative resilience, such as the Covid-19 pandemic and Foot-and-Mouth Disease (FMD). Therefore, the purpose of this study was to analyze the performance of cooperative milk production, and to the financial performance of cooperatives in the post-pandem Covid-19 period and during FMD. The method used in this study was a survey method to KPBS Pangalengan which represents large cooperatives, KSU Tandangsari which represents medium-sized cooperatives, and KPS Bogor which represents small cooperatives. The analysis method used standard cooperative performance methods through regulations of the Deputy for Supervision of the Ministry of Cooperatives and Small and Medium Enterprises (KUKM) of the Republic of Indonesia Number 06/Per/Dep.6/IV/2016 and key perfomance index to assess the financial performance of cooperatives. The results of the study showed that the performance of cooperative milk production decreased by 19.45% during the Covid-19 pandemic to the FMD as a result of the dairy cow mortality rate of 20.14%. The financial performance of dairy cow cooperatives was in the adequate category, both during the Covid-19 pandemic and FMD, but there was a decline in the ratio in all aspects of financial performance during the FMD. Thus, the performance of milk production and the financial performance of dairy cooperatives was better during the Covid-19 pandemic than during the FMD period. Therefore, strengthening milk production by providing new dairy cows and strengthening finances is very important

Survival dynamics of SMES supported by credit guarantee schemes: Insights from Morocco

The aim of this study is to assess the viability of SMEs that had benefited from bank loans backed by credit guarantee schemes. A quantitative approach has been adopted by the study. The sample comprised 398 Moroccan SMEs that had benefited from this type of financing, and the primary objective was to examine their survival over the ten years following the obtaining of these guarantees. Logistic regression was used to reflect several results. The results of the study highlight several factors influencing the probability of survival of these SMEs. Larger amounts of credit promote financial resilience and growth, thereby increasing the likelihood of business survival. Business profitability is a key factor in the likelihood of survival. Profitable businesses attract more investors and lenders, improving access to credit and increasing survival prospects. Contrary to some studies, high levels of debt do not appear to reduce the probability of survival. Similarly, repayment capacity showed no significant link with survival, suggesting the importance of other non-financial factors. Mature and well-considered management decision making is associated with a higher probability of survival. Well-thought-out decisions promote the long-term viability of businesses. Small SMEs also have a good chance of survival because of their rapid adaptability. A manager’s active participation in a company’s capital is linked to a higher probability of survival. This underlines the importance of the personal involvement of the manager and of solid governance.

Unlocking SME investment potential: The determinants of an effective credit guarantee scheme in Morocco

This research seeks to identify the factors influencing the investment potential of SMEs following their receipt of government-guaranteed loans. To this end, an empirical methodology based on the statistical analysis of data collected from a representative sample of Moroccan companies was employed. This sample of 335 SMEs that had benefited from loans with government guarantees was selected at random to ensure its relevance to the population of SMEs in Morocco. The methodological approach is based on a regression analysis using the robust least squares (RLS) method. Firm profitability is positively related to higher investment, suggesting that government guarantees should encourage investment by profitable SMEs. Liquidity, repayment capacity and indebtedness at the time of applying for finance do not appear to influence investment. These elements can be improved after financing, which indicates that government guarantees should not penalize SMEs in difficulty. Decision-making maturity has a negative effect on investment, suggesting that young companies and entrepreneurs tend to invest more. A negative correlation is observed between company size and investment, which suggests that government guarantees should be geared towards small SMEs and young companies and entrepreneurs. Finally, managers with a large share of capital invest more, leading us to believe that government guarantees should favor this type of SME.

Agriculture Financing for Output Growth: A Focus on Livestock Production in Nigeria

In this study, the effect of agriculture financing such as the agricultural credit guarantee scheme fund, bank loans and advances to agriculture, and foreign aid to agriculture on livestock production was examined in Nigeria from 1981 to 2021. Annual time series data for each of the variables were obtained from the Central Bank of Nigeria (CBN) Statistical Bulletin and the Organisation for Economic Cooperation and Development (OECD) Statistics. The method of data analysis includes descriptive statistics, a parsimonious error correction model (ECM), and diagnostic tests. Evidence of the first difference stationary processes was established from the unit root test results. This indicates that the variables are all integrated of order one, I(1). The Johansen cointegration test results show that the variables in the model have a long-run relationship. The parsimonious ECM shows that the agriculture credit guarantee scheme fund has a positive and significant effect on livestock output. The estimated parameters show that a 1% increase in the current value of the agriculture credit guarantee scheme fund leads to a 0.0244% increase in livestock output. Similarly, it was found that livestock output increased by 0.0183% following a 1% increase in the first-lag agriculture credit guarantee scheme fund. The findings highlight the importance of agriculture financing in boosting the growth of livestock production in Nigeria. The results further show that bank loans and advances, as well as foreign aid to agriculture, negatively and significantly affected livestock production. The error correction coefficient (-0.297) is negative and significant at the 5% level.

Growth-accelerating factors of green finance for green growth: a study using TISM

PurposeThe objective is to develop an empirical model estimating the relationship and interaction amongst the factors affecting and enhancing green finance (GF) in developing economies like India.Design/methodology/approachAround nine growth-accelerating enablers of green financing were found through literature and unstructured interviews and analysed using the total interpretive structural modelling (TISM) method. The hierarchical link between each factor is established using TISM, and further to evaluate the driver-dependent relationship the Matriced’ Impacts Croises Appliquee Aaun Classement (MICMAC) approach is utilised.FindingsThe findings demonstrate an interrelationship between growth-accelerating factors, where the political environment and information and communication technology (ICT), have minimal dependency but a strong driving force. Political environment and ICT are found as strategic-level factors lying at the bottom of the model driving towards the dependent variables. The government should focus on enacting effective policies such as the green credit guarantee scheme and carbon credit and establishing a regulatory framework to enhance green financing.Research limitations/implicationsThis study examines the literature to generalise the findings and focus on the primary motivators for developing green financing. To increase green financial activity, practitioners must concentrate on aspects with significant driving forces. Furthermore, it makes organisations more profitable, efficient and competitive and promotes long-term growth.Originality/valueThe study is the first in the literature which identifies the growth-accelerating factors of green financing using the TISM and MICMAC-based hierarchical models.

IMPLEMENTATION OF TERM DEPOSIT GUARANBINDING AT PT. BANK MANDIRI (PERSERO) TBK. MANDIRI PALEMBANG SUPPORT BRANCH OFFICE REGIONAL OFFICE II

The purpose of this research is to determine the implementation of the binding of term deposit pledge guarantees on PT. Bank M Andiri (persero) T bk. Mandiri Palembang sub-branch office Regional Office I. This researcher used a juridical-empirical research methodology with literature studies and field studies, specifically through an approach to statutory regulations and other legal materials related to the problem as well as through observations and interviews with related parties, including related officials. credit agreement at PT. Bank Mandiri (Persero) Tbk. Mandiri KCP Palembang Regional Office II The results of this research indicate that the implementation of binding collateral for term deposits at PT. Bank Mandiri (Persero) Tbk. Mandiri KCP Palembang Regional Office II by implementing binding guarantees for term deposit pledges at PT. Bank Mandiri (Persero) Tbk. was carried out in five stages, namely the first stage by binding credit as the main agreement where it is stated that the credit guarantee is a deposit. The second stage, namely binding the deposit, is carried out by making a deed of pledge agreement between the deposit owner and the bank. The third stage is handing over the guaranteed deposit slip to the pawn holder, in this case, the bank. In the fourth stage, together with the third stage, the deposit owner or guarantor must authorize the pawn holder or bank to disburse the deposit in the event that the deposit owner or debtor defaults. In the fifth stage, the creditor, as the recipient of the deposit pledge, will block the collateral deposit in accordance with the terms of the credit agreement. This means that as long as the credit from the main agreement has not been repaid, the collateral deposit will be blocked.