Bank Financing Research Articles

Selection of financing and selling modes in a green and capital‐constrained platform supply chain

AbstractCurrently, manufacturers can collaborate with online platforms to better sell green products and also finance from platforms to relieve financial pressure. To cater to this trend, we establish a platform supply chain model by considering a manufacturer with capital constraints that invests in a green production program. Then, it can sell green products via the reselling or the agency channel on a platform and finance from a bank, the platform, or both. In this context, we examine the choices of financial strategies and selling channels from the perspectives of both parties, as well as the corresponding environmental benefit and social welfare. Our findings show that the manufacturer prefers bank financing in most cases when the bank's interest rate is smaller than that offered by the platform. However, in the reselling channel, the manufacturer may choose platform financing even if its interest rate is higher. The platform tends to provide the agency channel when the commission rate is within a reasonable range. It is possible to realize the highest environmental benefit and social welfare in specific regions where both parties agree on the financing and selling modes to maximize their profits. When the manufacturer has only partial access to bank financing, it can choose mixed financing. However, the manufacturer cannot always treat mixed financing as a complete replacement of bank financing.

Test Maturity Model integration (TMMi): Test Maturity in the Financial Domain

Software quality is of utmost importance to the financial sector. Software testing plays a critical role in achieving software product quality. Financial institutions benefit from rigorous testing by having confidence in the reliability and performance of the software. This can lead to improved customer experience, increased operational efficiency, and reduced risks of system failures or security breaches. A questionnaire-based survey was designed and subsequently an international survey was conducted involving sixty financial institutions, e.g., banking, insurance companies and pension funds, from across the globe to understand their level of test maturity. As a reference framework against which to measure their test maturity, the Test Maturity Model integration (TMMi) was used. In this paper their motivations for doing test process improvement and the benefits they achieved are discussed. Concrete examples of the benefits achieved are provided. The role of test automation with test process improvement at the financial institutions is also reported upon in this paper. The most common level of test maturity achieved, measured against the TMMi, is TMMi level 3 “Defined” which represents a more than average level of test maturity. Benefits are reported by the financial institutions, especially in the areas of software quality and testing productivity. The benefits achieved show a high level of correlation with the motivations for investing in test process improvement. Almost all of financial institutions also use test automation to improve their testing in parallel with process improvement, with test automation at system level being by far the most popular.

Are Shariah Banking Financing Patterns Procyclical?

The recent financial landscape has seen remarkable growth in Islamic banking and finance (IBF). This study investigates the impact of Shariah-compliant finance strategies on economic growth cycles in Asian & Gulf nations, specifically Indonesia, Bangladesh, Saudi Arabia, Oman, and Kuwait. Previous research on the relationship between Islamic financing and economic growth has yielded conflicting results. Data from 2013 to 2021 will be used, with GDP as dependent and various Shariah financing techniques as independent variables. Data is sourced from the IFSB database and the World Development Indicators. Regression analysis will assess the correlation between variables. Hausman test results indicate that the fixed effects model is the most appropriate choice for examining the pro-cyclicality of Shariah banking financing patterns in Asian countries. The findings suggest a significant influence of Islamic financing practices on Asian nations' economic growth cycles. The study emphasizes the importance of considering diverse funding options offered by Islamic banking to support economic growth and contributes to existing knowledge by shedding light on the effectiveness of specific funding strategies in stimulating economic growth. These insights can guide financial institutions and policymakers in leveraging Islamic finance to foster economic advancement.

A Study on Property Valuation in Stiffeners Pvt Ltd

The analytical process of ascertaining the present value of an asset, such as residential, commercial, industrial, or agricultural land, is the main focus of the study of property valuation. The selling price and the possible income or rent are the factors that determine this value. The aim of this study is to determine the market value of properties for bank financing in various areas and to familiarize people with the general field practice of real estate valuation. For financial activities in the economy, including investing, purchasing and selling, loans, and mortgages, valuation is essential.

THE EFFECT OF CREDIT RISK AND BANK-SPECIFIC FACTORS ON FINANCIAL PERFORMANCE OF BANKS LISTED IN INDONESIA STOCK EXCHANGE (IDX)

The banking industry plays an essential role in national and global economy. It is caused by the intermediation function attached to bank as financial institution. Banks run the intermediation role by pooling funds from depositors and distribute them through credit loan. As business entity, banks have business goal, to enhance their financial performance. Banks gain most of their revenue from their main activity, delivering loan to the debtors. In order to give credit, banks have to deal with the inevitable risk coming along that the debtors might not be able to restore the fund. This risk is known as credit risk. The good credit risk management doesn’t assure the good financial performance. Banks have to fulfill another specific-factors in order to achieve good financial performance. Those factors are effectivity and efficiency of the day- to- day operation and interest pricing strategy. This research is conducted to discover how Non-Performing Loan (NPL), Capital Adequacy Ratio (CAR), Operational Costs on Operating Income (BOPO), Net Interest Margin (NIM), and Loan to Deposit Ratio (LDR) influence the financial performance of Banks Listed in Indonesia Stock Exchange (IDX). The result found that Non-Performing Loan (NPL) and Loan to Deposit Ratio (LDR) have no effect on Banks Financial Performance, Capital Adequacy Ratio (CAR) and Operational Costs on Operating Income (BOPO) have negative effect on Banks Financial Performance, Net Interest Margin (NIM) has positive effect on Banks Financial Performance. From these findings, it can be concluded that to elevate the profitability, banks have to focus on managing the risk management, efficiency, and pricing decision strategy.

Islamic Bank Financial Performance Analysis: Influence and Causes

Islamic Bank Financial Performance Analysis: Influence and Causes

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

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

Analysis of Financial Ratio to Economic Value Added at PT. Sharia People's Financing Bank (BPRS) Puduarta Insani Deli Serdang

This research aims to analyze the Financial Ratio to Economic Value Added at PT. Sharia People's Financing Bank (BPRS) Puduarta Insani Deli Serdang. Specifically, to analyze the measurement of Return On Equity (ROE) and Debt to Equity Ratio (DER) on Economic Value Added (EVA). The research approach uses Quantitative with Regression Data Type from 2016 - 2023, Multiple Linear Regression analysis techniques. The results of this research are: 1) Return On Equity (ROE) has a positive and partially significant effect on Economic Value Added (EVA), because an increase in equity can increase the added value of positive Economic Value Added (EVA) at PT. Sharia People's Financing Bank (BPRS) Puduarta Insani Deli Serdang; 2) Debt to Equity Ratio (DER) has a negative and partially significant effect on Economic Value Added (EVA), because debt that exceeds the asset value can reduce the equity value. Low Equity will cause a negative Economic Value Added (EVA) value at PT. Sharia People's Financing Bank (BPRS) Puduarta Insani Deli Serdang; 3) Return On Equity (ROE) and Debt to Equity Ratio (DER) simultaneously have a positive and significant effect on Economic Value Added (EVA) at PT. Sharia People's Financing Bank (BPRS) Puduarta Insani Deli Serdang.

Determinant of Return On Invested Capital

The banking sector is one of the most important sectors for the modern economy, because almost every industry involved in financial activities always requires banking services. This encourages the banking industry to function properly as seen from the capital it has. The amount of Third Party Funds for commercial banks continues to increase, reflecting that banking growth is getting better. Therefore, it is important to assess banking financial performance as measured by banking financial ratios. This is the reason why researchers are interested in conducting research on what influences the ROIC of Conventional Commercial Bank Companies. This study aims to analyze the effect of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Non Performing Loans (NPL), Net Interest Margin (NIM), Cash Ratio (CR), and Intellectual Capital (IC) on ROIC in Conventional Commercial Bank companies listed on the Indonesia Stock Exchange for the 2017-2021 period. The type of research used in this research is quantitative research with non-probability sampling technique using purposive sampling design. The population in this study were 46 banking sub-sector companies listed on the Indonesia Stock Exchange. The type of data used in this study is secondary data in the form of annual financial reports of conventional commercial bank companies listed on the Indonesia Stock Exchange for 2017-2021. The data analysis technique used is the eviews 10 program. The processing method used in this study is panel data regression analysis. The results showed that partially there was a significant influence on Net Interest Margin (NIM) (regression coefficient value of 2.112874, t count value 2.973486 > t table 2.034515 and a significant value of 0.0070 <0.05) and Cash Ratio (CR) ( regression coefficient value of 0.001887, t count value 4.640386 > t table 2.034515 and a significance value of 0.0001 <0.05) on ROIC. While Capital Adequacy Ratio (CAR) (t-count value 0.598328 <t-table 2.034515 and significance value 0.5557> 0.05), Loan to Deposit Ratio (LDR) (t-count value 1.310563 <t table 2.034515 and significance value 0.2035 > 0.05) , Non Performing Loans (NPL) (t count value 0.393639 < t table 2.034515 and a significance value of 0.6976 > 0.05), and Intellectual Capital (IC) (t count value 0.948279 < t table 2 .034515 and a significance value of 0.3533 > 0.05) partially had no effect on ROIC. In addition, the results of simultaneous research Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Non Performing Loans (NPL), Net Interest Margin (NIM), Cash Ratio (CR), and Intellectual Capital (IC) affect ROIC is indicated by the calculated f value of 65.88711 > f table of 2.445259 and a significance value of 0.000000 <0.05. Keywords: CAR, LDR, NPL, NIM, IC, ROIC

Does Islamic Banking Contribute to Increasing Public Welfare? Evidence from Indonesian Province Panel Data

One of the Sustinable Development Goals (SDGs) targets in Indonesia is to increase the level of public welfare that can be represented in GRDP per capita. Therefore, the purpose of this study is to determine whether Islamic banking through Islamic Commercial Banks (BUS), Islamic Business Units (UUS) and Sharia Rural Banks (BPRS) in 33 provinces in Indonesia, has contributed to GRDP per capita during the 2015-2022 period. GRDP per capita as a proxy indicator for the level of public welfare to encourage the achievement of the sustainable development goals (SDGs) target. This study uses panel data regression analysis because the data is time series and cross section. The size of the Islamic banking contribution uses Islamic Bank Office (IBO), Financing and Third-Party Funds (TPF) variables in 33 provinces in Indonesia. Meanwhile, the size of the welfare level of a region uses Gross Regional Domestic Product (GRDP) per capita data. The findings of this study show that the IBO, financing, and TPF variables simultaneously have a significant positive effect on GRDP. However, partially, the IBO variable has a significant negative effect on GRDP, the financing variable has a significant positive effect on GRDP, and the TPF variable has no effect on GRDP.

Crowdfunding in Portugal—Using the Raize Platform to Ensure the Sustainability of Companies and Projects

This study aims to analyse the reasons why entrepreneurs choose to use collaborative financing through the Raize platform to finance their companies or projects through peer-to-peer crowdfunding (loans). This study is pertinent because it deals with an innovative, differentiated topic that presents itself as a possible disruptive form of financing and an alternative to traditional bank financing. Its use and significant take-up and the rapid and continuous growth of users on this type of crowdfunding platform is a strong sign of the need to better understand and study this phenomenon, its benefits, weaknesses, gaps and future mutations. Based on a comprehensive literature review and sound research methods such as exploratory qualitative multiple-case analysis, the aim is to gain a comprehensive understanding of the reasons why entrepreneurs and businesses choose crowdfunding through the Raize platform as a financing alternative. The aims of this study are to understand how financial accessibility, trust in the investor community, ease of use of the platform, competitiveness of fees and preference for crowdfunding over bank financing influence entrepreneurs’ decision to fund themselves through the Raize platform. The results reveal that entrepreneurs opt for the Raize platform due to a combination of factors. These reasons, clearly highlighted, provide a deeper understanding of entrepreneurs’ decision making in relation to financing their projects through crowdfunding. This study not only contributes to the literature on crowdfunding and entrepreneurship, but also offers practical pointers for entrepreneurs looking to obtain funding through a new financing system that is offered through the Raize platform, as it continues to support innovation and business growth in Portugal. Such funding contributes to and enhances the sustainability of companies in terms of their funding profile and attractive positioning in the market.

The Driving Factors of Customers' Intentions to Use Micro Waqf Bank Financing: A Behavioral and Religiosity Approach

The Driving Factors of Customers' Intentions to Use Micro Waqf Bank Financing: A Behavioral and Religiosity Approach

The Regulation of Index-Based Agricultural Insurance Products as a Risk Management Tool for Small Holder Farmers in Cameroon

The regulation of index based agricultural insurance for small holder farmers in Cameroon are as a result of the risk they are exposed to like weather variability and related risks associated with their activities especially droughts, floods, pests and input costs and more importantly the limits of indemnity based agricultural insurance. Like any other poor and low income farmers with small land holdings their risk exposures can only be managed through good laws especially with the use of index insurance as a risk management tool. This article examines the CIMA Code as a regulatory instrument for agricultural insurance as far as small holder farmers are concerned. Book VII of the CIMA Code introduced microisurance in 2012 as a panacea to indemnity insurance which enabled the codification and development of index insurance by member states. The implementation of Index-based agricultural insurance faces considerable challenges that must be overcome to effectively service farmers in remote areas in a country like Cameroon. These challenges includes amongst others: regulatory insufficiency, limited historical rainfall and crop yield data, information on livestock mortality and limited infrastructures just to mention a few. It is recommended inter-alia that these aforementioned could be addressed through codification, infrastructural developments, inclusion of non-farming activities like banking and micro finance institutions amongst others.

The Collapse of Silicon Valley Banks Improves Risk Management for Other Commercial Banks

Silicon Valley Bank, a subsidiary of Silicon Valley Bank Financial Group, provides loans to venture capital as well as startups. Silicon Valley Bank primarily serves technology-based companies. Our paper focuses on the implications of the Silicon Valley bank bankruptcy for other commercial banks from four aspects. First, what are the risks in the business operation model of Silicon Valley banks; second, what caused the bankruptcy of Silicon Valley Bank; Third, the impact of the bankruptcy of Silicon Valley Bank; Fourth, the bankruptcy of Silicon Valley Bank has implications for the development of Chinese commercial banks. The main reason for the bankruptcy of Silicon Valley Bank was the Fed's interest rate hike. As a traditional commercial bank, Silicon Valley Bank's profit model is mainly based on interest differential. Affected by the epidemic, the demand for loans from Silicon Valley banks declined, so Silicon Valley banks chose to buy US Treasury bonds and MSBs. The Fed's interest rate hike coupled with a large amount of money printing in the United States has led to inflation. The sharp depreciation of US Treasuries and MSBs, coupled with the end of the mobile Internet cycle, forced Silicon Valley banks to sell a large number of unmatured bonds. Eventually a bank run occurred, leading to the bankruptcy of Silicon Valley Bank.

Nonbank Financial Intermediation: Stock Take of Research, Policy, and Data

This article reviews research and policy work on nonbank financial intermediation (NBFI), taking a financial stability perspective. It first documents the growth in NBFI, reviews its possible drivers, and documents recent instability episodes. NBFI now often surpasses traditional bank financing, and research on it has increased, including research on its financial stability characteristics. Given NBFI's many forms and dimensions, the article focuses on its market-based forms. Taking a cross-country perspective, it reviews the benefits of NBFI, in terms of access to finance and economic impact, and its risks, specifically those related to interconnections, interactions between liquidity and leverage, and procyclicality. It describes policy steps—underway and possible—to reduce these risks, highlights outstanding issues, and suggests further analytical work. It also considers the current state of available data and the means to address remaining gaps.

Sustaining and Stabilizing During Covid-19: Effective Management of Bank Financial Behavior through Digital Financial Inclusion

Digital financial inclusion is critical for achieving higher economic growth, sustainable development, and a more financially inclusive nation. Additionally, digital financial inclusion is vital for stabilizing the Islamic banking industry during the COVID-19 epidemic, leveraging its resistance to financial shocks, and fostering financial inclusiveness. Islamic banks are usually considered because of their significant ability to counter financial crises and their prominent contribution to financial landscape. This study investigated the digital financial inclusion and Islamic banking stability nexus using unbalanced panel data from 65 Islamic banks from six countries from 2010 to 2021. This study uses a GMM approach and a Z score. The finding implies that the default risk of the banks in the analyzed area is reduced due to the increased stability of Islamic banking brought about by the broader application of digital financial inclusion. Digital financial inclusion is more strongly correlated with banks' financial soundness. Access to banking services, made possible by digital financial inclusion, also dramatically improves banking stability and makes banks more resilient. Moreover, incorporating digital financial inclusion into Islamic banking promotes inclusive economic development, which may help the industry weather crises like the present COVID-19 epidemic. This study lays out the policy implications that increasing bank stability, bolstering financial literacy, and combining digital financial inclusion with other strategies to keep banks viable.

The acquisition motive of newly credit rated firms

A large body of research documents an increased acquisition activity among credit rated firms. We examine whether firms seek an initial credit rating to conduct large scale acquisitions, and whether this acquisition activity is driven by empire building or value creation motives. First, we find that acquisitions are a credible motive for seeking a credit rating, initially rated firms are associated with 13.05pp greater acquisition likelihood and these transactions are more likely to be settled by cash. Second, to recoup the costs of becoming rated, firms conduct large-scale high-quality acquisitions associated with 1.52pp higher acquirer announcement returns, where the higher cumulative abnormal returns are concentrated among firms obtaining a speculative grade initial rating. Third, following the initial rating year, acquisition activity dampens to pre-rating levels. In sum our findings lend support to the notion that previously financial constrained firms enter the bond markets to complement bank financing when conducting large value enhancing acquisitions.

Implementation of Sharia Principles in Micro Waqf Bank Financing Products at Minhadlul'ulum Islamic Boarding School (Based on the National Sharia Board Fatwa of the Indonesian Ulema Council Number 19 of 2001)

This study was to determine the practice of financing products at the Micro Waqf Bank of the Minhadlul ’Ulum Islamic Boarding School and to determine the suitability of Sharia applied at the Micro Waqf Bank of the Minhadlul ’Ulum Islamic Boarding School. This research uses a qualitative method by conducting research directly in the field through an empirical normative approach. Sources of research data were primary and secondary data. This is descriptive research with data collection techniques such as observation, interviews, and documentation. The results showed that the financing product at the Micro Waqf Bank of the Minhadlul’Ulum Islamic Boarding School, namely the Qardh contract, is by Sharia principles and is by the provisions of DSN-MUI Fatwa No.19/DSN-MUI/IV/2001 concerning qardh. This conformity is due to the financing of the Qardh contract with a profit-sharing margin fee equivalent to 3% per year as a consulting service. The cost of consulting services for operational costs, namely transportation to KUMPI, because the system is the party from the Micro Waqf Bank who comes directly to the customers to pay the loan installments. Keywords: Sharia principles, financing products, Micro Waqf Bank, Fatwa DSN-MUI

Regulation of the cryptocurrency market by legislation of Hungary

The article is devoted to the study of the regulation of the cryptocurrency market in Hungary, the regulatory consolidation of property rights to cryptocurrency values. A comparative analysis of the regulation of this issue under the legislation of the EU and directly of Hungary was also carried out. Because it is the regulatory framework and court precedents on the territory of the EU that form the basis for the formation of the domestic framework for the regulation of Hungary’s crypto market. It is also important to clearly define Bitcoin and Blockchain as a special kind of thing in Hungarian civil law. The authors paid special attention to the innovation in the tax sphere of Hungary. Virtual currencies, especially cryptocurrencies, and the technology behind them and their constant development pose a serious challenge to the legislator. The task is further complicated by the fact that cryptocurrencies have a number of unique characteristics that distinguish them from one another. The study focuses on issues related to taxation, mainly based on the norms of the current legislation of Hungary. A study of the appearance, concept and social acceptance of money, a presentation and a detailed analysis of each financial function lead to an analysis into the world of cryptocurrencies. The article also argues that each of the payment documents in the form of cryptocurrency can act as digital currencies or cannot perform monetary functions. When writing the article, special attention was paid to digital money of the central bank, which can revolutionize it, as a digital form of legal tender. Nowadays, most countries (for example, England) are experimenting with central bank digital money for its implementation. In theory, central bank digital money can replace traditional money and payment services (eg bank accounts, bank deposits). The advantage of the system is that it would reduce the cost of bank funding and it is also new for monetary policy. Central bank regulation of digital money will be one of the most important issues in the coming years. Due to the extreme volatility of the field under consideration, the authors consider it important to note that this article can only provide a brief and concise overview of the regulatory and tax regulation of the cryptocurrency market under Hungarian law. And this analysis has a positive foundation for further research and comparison with the domestic legal base of cryptocurrency market regulation under the legislation of Ukraine.

Analisis Penggunaan Rasio Aset Dengan Metode Fixed Assets Turnover Ratio (FATO) Dan Total Assets Turnover Ratio (TATO) Dalam Laporan Keuangan PT. Bank Mandiri (Persero) Tbk

Banks are bodies or institutions that receive credit or loans. In banking finance we need to measure the asset ratio. Asset Ratio is the management of company assets in generating income which is used to evaluate the efficiency of financial management. The Asset Ratio includes a comparison between the company's total assets and the resulting income or net profit. Is the bank efficient in utilizing or using its fixed assets? One method for calculating a bank's asset ratio is the FixediAssets Turnover Ratioi (FATO) and Total AssetsiTurnover Ratio (TATO). Calculating these two analysis methods requires or involves all assets owned by the bank. a bank. In banking, the Fixed AssetsiTurnover Ratio (FATO) is a ratio that measures the effectiveness of a company in using its fixed assetiinvestments toigenerate net sales (services). Total Asset Turnover Ratio (TATO) is usually used to determine how effective a company's total assets are in generating income. From the results of the analysis of the financialistatements of PT. Bank Mandiri (Persero) Tbk in 2017-2021 can be concluded that the Company's activity ratio is still categorized as unfavorable. This is because the measurement of Fixed AssetiTurnover Ratio (FATO) and Total AssetsiTurnover Ratio (TATO) each year experiences fluctuations or is unstable or inefficient in managing fixed assets and total assets in supporting the Company's operations to generate income.