Credit Interest Rates Research Articles

Analysis of Credit Bank Distribution with Seemingly Unrelated Regression Method on Panel Data

One of the bank’s business activities that most impactful for economic growth is credit distribution that is affected by independent variables including Thirds Party Funds, bank’s performance (CAR and LDR), credit interest rates, NPL, and external variables such as BI Certificate, BI Rate, and exchange rates. Panel data regression is used to analyze the impact of those variables. The type of this research data is combined features of both cross-section and time-series obtained from SPI. The study is aimed to see variables that affect credit distributions at the commercial banks between January 2016 until December 2019. Among the common error structures, there are individual correlations known as contemporaneous correlations. This case can be resolved by seemingly unrelated regression analysis. The result showed that Third Party Funds and LDR have significantly impacted the credit distribution of all types of commercial banks with a goodness of fit measure is 99.909%. Moreover, all variables studied were impact the credit distribution of the Joint Venture Bank and the Regional Development Bank.

Survival finance and the politics of equal pay.

Wage gaps constitute a major component of workplace inequality. While scholars have explored the causes and consequences of differences in pay, very few question the basic presumption that workers are paid differently in the first place. Drawing on ethnographic research in a worker cooperative with a policy of equal pay, this article analyses how the organization compensated its members in the context of low wages, economic uncertainty, and insufficient social benefits. Over time, I found that members justified small variations that led to wage difference without amending their commitment to pay equity. This was made possible through a system of survival finance, a set of compensation practices that supports the reproduction of both individual members and the organization as a whole. Whereas members understood money wages as market-based incentives for labor, the cooperative enacted its principles of equality and fairness by compensating members with alternative currencies (time) and additional benefits (zero interest rate credit) to help make ends meet. The article concludes by reflecting on the challenges of equalizing pay and its implications for reducing workplace inequality.

Factors That Affect Liquidity of Commercial Banks in Kosovo

A very important factor that affects the growth and survival of commercial banks is also the level of liquidity. Banking industry regulators require banks to possess liquid assets in order to fulfill their obligations to depositors and third parties accurately. Lack of liquidity reduces the ability of banks to meet their obligations and otherwise excess liquidity may be the cause of reduced profits for banks. There are many factors that can affect the position of liquidity in commercial banks and which factors cause unbalanced liquidity and as such also affect their performance. As a result, the study of these factors is of particular importance. The main objective of this study is to analyze the liquidity empathy of the banking sector to several specific banking and macroeconomic factors. To achieve this objective, the study uses regression analysis per a data set that includes a time of 8 years respectively the years 2012 - 2019. To build the necessary econometric model and to achieve the purpose of the study, data are taken from the publications of the Central Bank and the World Bank (GDP data), which data are analyzed for each quarter for the study period. After analyzing the available data, the study concludes that between the main factors that can affect the liquidity position of commercial banks, Non-performing loans, Capital adequacy, and Credit interest rate have the grand and most important impact on the liquidity banking position.

Pengaruh Suku Bunga Kredit dan Risiko Kredit terhadap Return On Asset dengan Pendapatan Bunga sebagai Variabel Intervening

This study was conducted to examine the effect of lending rates, net performance loans, interest income on return on asset (ROA). The population in this study is a finance company listed on the Stock Exchange in 2015-2019. The sample was determined by a porposive sampling method – 65 samples. The data used are secondary data obtained from the IDX gallery. The hypothesis in this study was tested using path analysis to determine the direct and indirect effects of the independent variables used on the dependent variable. The results of this study indicate that partially lending rates have a significant influence on interest income, while credit risk which is proxied by Net Performance Loan (NPL) has no significant effect on Interest Income. Credit Interest Rates do not have an effect on Return On Assets (ROA), while Credit Risk which is proxied by Net Performance Loan (NPL) has a significant negative effect on Return On Assets (ROA) and Interest Income has a significant positive effect on Return On Asset (ROA). The indirect relationship between lending rates and credit risk with Return On Assets (ROA) by using interest income as an intervening get significant results.

ПЕРСПЕКТИВИ НАРОЩЕННЯ РЕСУРСНОГО ПОТЕНЦІАЛУ БАНКУ ЗА РАХУНОК АКТИВІЗАЦІЇ ПРОЦЕСУ ЗАЛУЧЕННЯ ЗАОЩАДЖЕНЬ НАСЕЛЕННЯ

At present, the economy of Ukraine needs to attract significant financial resources and the Ukrainian financial system has them, but in a frozen state. This is the household savings in the cash form. The problem is to convert unorganized household savings into bank resources, which will meet the needs of economic entities in borrowed funds and at the same time allow citizens to receive additional income, which will lead to increased consumer demand. The purpose of this article is the development of theoretical and methodological principles and practical proposals for the transformation of household savings into banking resources. However, it is necessary to identify the factors of the formation of household savings, the main of which is undoubtedly the level of income. Certainly, the income of the population plays a significant role in the development of the whole country. And it is the level of economic development of the country that determines the motivation of households in the creation of savings. In addition, the amount of savings is also influenced by other factors, such as the level of income taxation, deposit and credit interest rates, the age structure of the population, etc. The article has analyzed the dynamics of incomes and savings of the population from 2005 to 2019, as well as the monetary aggregate M0 as a potential resource of commercial banks. It was determined that the amount of monetary aggregate M0 in 2005 amounted to UAH 60.2 billion, and by the end of 2019, this figure exceeded the mark of UAH 384.4 billion. The monetary aggregate M0 includes cash in circulation outside deposit-taking corporations, which includes funds of the population, which under certain conditions may become a banking resource. At the same time, the ratio of the monetary aggregate M0 and M3 in Ukraine during 2005-2019 remains consistently high - at 27%. Interestingly, that only about 50% of the population's savings become resources of banks. While businesses are looking for affordable sources of financing their investments, much of the savings are accumulated in the form of national and foreign currency. This is due to the low attractiveness of alternative investment options for the population (in private pension funds, life insurance, mutual investment institutions, real estate, etc.) bank deposits will remain the main means of investment soon. However, the formation of the resource potential of banks based on household savings should be based on a combination of tools at all levels of the hierarchy, such as the influence of the NBU, the banking sector, and individual banks.

Analysis of the Influence of Interest Rate, Rupiah Exchange Value, Household Consumption, and Import on Inflation in Indonesia Period 2010.Q1 - 2018.Q4

This study aims to analyze the effect of the interest rest, the exchange rate of the rupiah, and imports on the inflation in Indonesia. The study used multiple regression equation by using secondary time series. Data from 2008.Q1-2018.Q4. The results showed that the interest rate of SBI, exchange rate of rupiah against US Dollar, private sector household consumption, and the total imports of Indonesia had a simultaneous impact on the inflation in Indonesia. However, partially only the interest rate of SBI and total imports of Indonesia had a significant impact on the inflation in Indonesia, respectivelyon the level ofα = 1% and α= 5%. These results mean that the increasing of interest rate of SBI and Indonesian import could impact the inflation rate in Indonesia. Based on the findings, the policy to control the inflation in Indonesia was Bank Indonesia as the holder of monetary policy needs to oversee the determination of business credit interest rate (micro, retail, and corporate), by commercial banks in order to maintain the rate on the stable and low levels. In addition, the government needs to compose the policy to reduce the dependence on imported goods by providing various facilities and incentives to increase the interest of entrepreneurs to invest in industries that produce imported substitute goods.

Can Credit Recipient Household Escape from Poverty?

This study aims to answer whether or notfinancial distribution can play a role in development and poverty alleviation in Indonesia. Households who receive credit are treated as the analysis level and research object. Credit is an instrument to help households escaping from poverty. Some opinions believe that by being given credit, households will be able to boost their economic capacity both in terms of purchasing power or business development capacity. However, to prove this opinion as well as to answer the question, using panel data from the Indonesian Family Live Survey (IFLS) in 2007 and 2014 will attempt to estimate the effect of the probability of households receiving credit on their poverty status. The probability of a credit recipient householdwill be calculated using Propensity Score Matching so that a similarity score of household characteristics will be obtained between those who get credit and those who do not. Using Double Differences, this study will address the description of changes in household poverty status after receiving credit from financial institutions. The PSM calculations results show that there are four variables as credit recipient household’s characteristics, namely collateral ownership, the status of property ownership, history of natural disasters, and gender. Meanwhile, the estimation results on poverty status indicate that credit recipient households have a greater probability of escaping poverty than those who do not receive credit. Therefore, the anti-poverty policy through the transmission of financial institutions is relevant to be prepared. The anti-poverty policy is related to low credit interest rates through government subsidies, public fund placement with low cost of fund, increasing financial literacyand knowledge of the society, and adjusting credit approval based on regional economic conditions.

Pengaruh Dana Pihak ketiga Non Performing Loan dan Suku Bunga Kredit terhadap Profitabilitas pada PT. BPR Suryajaya Ubud

This study aims to determine the effect simultaneously or partially on profitability at PT. BPR Suryajaya Ubud for the period 2013-2016. The sample used was 48 DPK, NPL, Loan Interest Rates, and ROA data. Data were analyzed using the classic assumption test, multiple linear regression test, determination analysis, simultaneous significance test (F-test), and partial significance test (t-test). The results in this study indicate that Third Party Funds have partially negative and significant effect on ROA. Non Performing Loans partially have a negative and significant effect on ROA. Credit interest rates partially have a positive and significant effect on ROA. DPK, NPL, and Credit Interest rates simultaneously have a significant effect on ROA at PT. BPR Suryajaya Ubud in 2013-2016.

The Influence of Credit Interest Rate and Credit Risk on Market Performance

This study aims to analyze the effect of credit interest rates and credit risk on market performance. Non Performing Loans (NPL) reflect bank credit risk, where the higher the NPL level, the greater the credit risk borne by the financing party. Due to high NPLs, financing will be more careful (selective) in channeling credit. This is due to the potential for uncollectible credit. The high NPL will increase the risk premium, which will lead to higher loan interest rates. Credit interest rates that are too high will reduce public demand for credit. The high NPL also resulted in the emergence of larger reserves, so that in the end bank capital was also eroded. Thus, the amount of NPL is one of the obstacles to the channeling of financing credit. The research method used is quantitative research. The sampling technique used was purposive sampling. The study was conducted on finance companies with a research period of 2015-2018. The analytical method used is the multiple regression test using SPSS.22 analysis tools, namely with a descriptive test, a classic assumption test, a model suitability test, and a regression test. The results of credit interest rates have no significant effect on market performance, and credit risk has a significant effect on market performance. This shows the interest of inventors to invest in shares of companies whose non-performing loans are not high even though the interest rates on these companies increase.

Pengaruh Tingkat Suku Bunga Kredit dan Jumlah Nasabah Terhadap Profitabilitas pada KBPR Bumi Arta

Rural Banks are one of the banking financial institutions that collect funds from the public in the form of deposits and redistribute them in the form of credit,This research was conducted at KBPR Bumi Arta located on Jl. Irian Jaya No. 25 Cukir, Jombang.The purpose of this study was to determine the effect of credit interest rates and the amount of profit on profitability in KBPR Bumi Arta.This type of research is quantitative research.The population in this report is the financial report and KBPR Bumi Arta report for the last 5 years from 2013-2017 which discusses 60 research data.The sampling technique uses non-probability sampling using saturated samples,The sample used is the monthly financial statements, income statement, and KBPR Bumi Arta loan list report for the period 2013-2017.Data analysis techniques are multiple regression techniques,The results of the study show that the variable credit interest rate has a significant positive effect on the variable profitability, While the number of respondents has a significant effect on the variable profitability.

PENGARUH INFLASI, BI RATE, SUKU BUNGA KREDIT UMKM TERHADAP NON PERFORMING LOAN KREDIT UMKM PADA BANK UMUM

This study aims to obtain empirical evidence on the influence of inflation, rate of Bank Indonesia, and credit interest rate on non - performing SMEs credit loan at Commercial Banks. This study uses secondary data obtained from quarterly OJK reports and Bank Indonesia monthly reports for the period of 2014 - 2018. Multiple linear regression models are used to test the hypotheses of this study. It was found that the inflation rate and the rate of Bank Indonesia individually doesn't have a siignificant influence on non - performing SMEs credit loans. On the other hand, it was found that credit interest rate has a signifinicant influence on non - performing SMEs credit loans.

The Competitive Effects of Financial and Fiscal Institutional Arbitrage Opportunities.

In this study, we focus on competitive interactions in international contexts by exploring the role of institutional arbitrage opportunities that make cross-border M&A partners more threatening competitors. Drawing on the institutional arbitrage lens, we argue that when firms engage in cross-border M&As they can exploit the institutional differences between acquiring and target firms’ countries to access or conserve financial resources through increased borrowing limits, lower credit interest rates and reduced tax burden, thus they can enhance their competitive position on the market. Consequently, gains from financial and fiscal institutional arbitrage opportunities can pose a substantial threat for the rivals of the M&A partners and should provoke an increase in rival firms’ interfirm responses. In addition, we argue that the effect of institutional arbitrage opportunities of the M&A partners on the variation of rival firms’ interfirm responses is moderated by rivals’ awareness, motivation, and capability. An analysis of rival firms’ M&As, alliances and joint ventures before and after horizontal cross-border M&As of their competitors in the manufacturing industry between 1999- 2014 provides some support for our theoretical reasoning.

Relationship Between Non-Formal Credit and the Welfare of Indonesian Households

This study used Indonesian Family Life Survey (IFLS) data and applied the fixed effect estimation method. This study showed that informal credit had a more negative impact on household welfare compared to the use of formal credit. In addition, the use of semi-formal credit caused a more negative impact on household welfare compared to the use of formal credit. It can be due to higher interest rates in the use of informal credit compared to semi-formal and formal credit. This study also indicated that credit used for productive purposes brought about a more positive impact than credit used for consumptive purposes. The higher the amount of credit used, the more positive the impact on household welfare is compared to the use of fewer loans. This research results can be the basis for the government to concern about the policy of credit interest rates to the public.
 Keywords: formal credit, semi-formal credit, informal credit, interest rate

PENGARUH DANA PIHAK KETIGA, RETURN ON ASSET, DAN SUKU BUNGA KREDIT TERHADAP PENYALURAN KREDIT PADA BANK PERKREDITAN RAKYAT DI KOTA DENPASAR

The growth of bank lending in Indonesia has fluctuated every year. This is caused by several factors that affect lending. This study aims to determine the effect of DPK, ROA and credit interest rates on lending at BPR Denpasar. The population in this study is the BPR Bank, amounting to 13 companies. The sampling technique used was purposive sampling which is a type of sample selection with a specific purpose with the criteria that have been set and get 7 sample companies that are included with a period of 5 years. The data analysis technique used is multiple linear regression with the application of SPSS for windows. The results of the analysis show that DPK, ROA and credit interest rates together have a positive and significant effect on lending at BPR banks.

The Impact of the Extra-Costs on the Global Cost of Credit

In this note, we analyze the impact of the extra-costs payment schedule on the Effective Annual interest Rate (EAR), one of the most popular global cost measures of consumer credit loan payments. First, we prove that the EAR can be expressed by the financing credit interest rate with an extra-costs interest rate addendum, and we investigate the drivers of this latter. We show that the extra-costs interest rate decreases if extra-costs payments are postponed. Consequently, the EAR is minimum if extra-costs are charged in a lump sum at the expiry date of the contract and maximum if they are charged in a lump sum at the contract beginning time. To explain how the schedule of payments impacts on the EAR, we develop a sensitivity analysis through illustrative applications. We also highlight that EAR depends on the timing of extra-costs payments. In particular, we show that EAR decreases with the increase in the Modified Duration of the cash flow of extra-costs. The results of the paper are useful to provide decision-makers a better awareness about how to spread the extra-costs payments during the contract lifetime and, therefore, to define the structure of consumer credit loan payments to supervise the global cost of the financing.

The Impact of TLTRO2 on the Italian Credit Market: Some Econometric Evidence

This paper evaluates the impact of the second series of Targeted Longer-Term Refinancing Operations (TLTRO2) on the amount of credit granted to non-financial private corporations and on the interest rates applied to loans in Italy, using data on credit transactions, bank and firm characteristics and a difference-in-differences approach. We find that TLTRO2 had a positive impact on the Italian credit market, encouraging medium-term lending to firms and reducing credit interest rates. While firms overall benefited from TLTRO2 irrespective of their risk category and size, we document heterogeneous treatment effects. Regarding firms’ risk category, the effects on credit quantities are larger for low-risk firms while those on credit interest rate are larger for high-risk firms. Regarding firms’ size, smaller firms benefited the most both in terms of amounts borrowed and interest rates. Furthermore, our evidence suggests that monetary policy transmission of TLTRO2 is stronger for banks with a low bad debt ratio in their balance sheets.

ASPEK BISNIS USAHA LAUNDRY SEPATU DI JAKARTA

Footish is a business engaged in laundry shoes by offering shoe washing services using Dry Cleaning methods. This business markets its business by disseminating information through social media in the form of Instagram and Facebook and the sneakers community in Jakarta. The initial investment requirement for Footish is Rp. 286,873,000 which is used to rent buildings for 1 year, equipment costs and equipment costs, as well as initial cash reserves. Proforma calculation of profit and loss for 5 years, namely from 2019 to 2023 shows a positive and visible number will always increase every year, as well as for the pro forma cash flow and pro forma balance sheet. The results of the analysis of the feasibility of Footish business prove that this business is quite feasible to run because judging from the break-even point analysis shows that the sales generated by Footish are greater than the value of BEP. Then the value of NPV is greater than zero, which is Rp. 495,893,250 using the credit interest rate of 11.83%. The IRR value obtained is 63.17% greater than the Expected Rate of Return of 11.83%. Payback Period analysis that shows the return on investment from this business is for 1 year 7 months 3 days. Keywords: Business Feasibility, BEP, Investment Feasibility, NPV, PI, PP, IRR

Analysis of Business Profitability Kisar Sheep In Kisar Island, Maluku Barat Daya Regency

The study aimed to analyze the profitability of Kisar sheep farmers in Kisar. The role of the livestock in the structure of income is potentially important especially in the welfare of local farmers. This research was conducted in April to June 2014 in Kisar Island, Kabupaten Maluku Barat Daya. The location of the study was determined intentionally (purposive) because only Kisar has the population of Kisar sheep livestock. The respondents were determined by proportionate random sampling. The chosen location was three villages named Pura-Pura, Oirata and Wonreli. The Respondents were drawn as many as 100 people were chosen randomly. The collected data were analyzed descriptively. The result of the study showed that Kisar sheep farmers’ income was IDR. 202,169.9/year for a small scale, IDR. 2.509,475.2/year for a medium scale and IDR 5,891,408.9 /year for a large scale. Based on the analysis, the percentage of the profitability achieved was small scale was 20,5%, middle scale was 25,95%, and big scale was 58,25%. It is said to be profitable because the value of profitability is bigger than the bank credit interest rate of 5%.

ANALISIS INVESTASI SEKTOR PERTANIAN DI SULAWESI TENGGARA

This study aims to compare theinvestment on agriculture sector in Southeast Sulawesi. Data used are of annually, covering 1990-2009. The analysis is undertaken by using a multiple regression.The result shows that the interest rate of credit, the Gross Regional Domestic Producton agriculturesector simultanaeously to give significant effect to theinvestment on agriculturesector. The value of regression coefficient of the interest rate credit is negative, but the interest rate of credit does not provide a significant to the investment on agriculture sector. Meanwhile, the Gross Regional Domestic Product on agriculture sector has a positive relationship and has a significantto the investment on agriculture sector. The value of regression coefficientby 0,191 indicates that when the GRDP on agriculture sector increase by1 rupiahwill increase investment on agriculture sector by 0,191 rupiah, or when agriculture GRDP increased by 1% then will improve the investment on agriculture sector of 0,97%, or more easily can be defined that if the GRDP of agriculture sector increase, the investment of the agriculture sector will also be increase.

The Relationship Between the Financial Innovation and the Money Supply: Empirical Study on the Maghreb Countries

Abstract This article examines the relationship between money supply and financial innovation in the Maghreb countries over the period of 1980–2018 for a large annual data set on five Maghreb countries using the panel autoregressive distributed lag model (PANEL-ARDL). The results obtained from the cointegration technique of Pesaran and Shin (1999) confirm that a long-term relationship exists between M2 and its determinants: GDP, inflation, and the credit interest rate. Above all, the results of the research show that mobile money positively and significantly influences the money supply both in the strict sense and in the broad sense. Also, the number of ATMs positively but not significantly influences the supply of money in the broad sense. Failure to take into account the expansion of the number of ATMs can therefore lead to a poor specification of the money supply, and monetary authorities need to explicitly integrate the effect of financial innovation for effective policy action to stabilize economies.