Interest Credit Research Articles

Trade finance evolution: a comparative study of regulatory reforms in factoring policies for SMEs in India and China

This paper evaluates the effectiveness of the Factoring Regulation (Amendment) Bill 2021 in stabilizing the economic situation of micro, small, and medium-sized enterprises (MSMEs) in India using doctrinal research methods and comparative study. It compared the factoring regulations of India and China. The authors analyse the ramifications of the recent amendments to the Factoring law via a comprehensive literature review, legal frameworks, and comparative analysis of India and China. This study seeks to cast light on the potential of the Factoring Law in addressing the financial challenges encountered by SMEs in India. The findings provide policymakers, stakeholders, and researchers with vital insights into the regulatory framework's effectiveness and potential improvement areas. The research concluded that factoring is an important worldwide trade financing tool for economic development and financial inclusion since it promotes entrepreneurship, private enterprise, and supply chain finance. In order to raise its standing, India may consider adopting features from the Chinese Civil Code, setting regulations for factoring rights transfer, and prioritising creditor interests.

ANALISIS PERHITUNGAN SUKU BUNGA KREDIT MENGGUNAKAN METODE FLAT RATE DAN SLIDING RATE PADA KOSPIN JASA CAPEM JATIBARANG

This study aims to understand the analysis of credit interest calculation using flat rate and sliding rate method at Kospin Jasa Capem Jatibarang. The data collection methods are literature study, documentation, interviews, and observation. The technique used for data analysis is quantitative description analysis with flat rate and sliding rate method formulas. The research findings show that the flat rate calculation method has a greater interest value than the sliding rate calculation method, both for 12 months and 24 months. The flat rate method is more appropriate for short-term loans, and is suitable for debtors with fixed income, while the sliding rate is more appropriate for long-term loans because the nominal interest decreases.

PROBLEMS OF BALANCED PROTECTION OF THE RIGHTS AND INTERESTS OF CREDITORS AND CLIENTS AND THEIR POSSIBLE SOLUTIONS / ՎԱՐԿԱՎՈՐՈՂՆԵՐԻ ԵՎ ՀԱՃԱԽՈՐԴՆԵՐԻ ԻՐԱՎՈՒՆՔՆԵՐԻ ԵՎ ՇԱՀԵՐԻ ՀԱՇՎԵԿՇՌՎԱԾ ՊԱՇՏՊԱՆՎԱԾՈՒԹՅԱՆ ՀԻՄՆԱԽՆԴԻՐՆԵՐԸ ԵՎ ԴՐԱՆՑ ՀՆԱՐԱՎՈՐ ԼՈՒԾՈՒՄՆԵՐԸ

The development of financial markets is currently characterized by the emergence of new products, the expansion of the geography of financial organizations, the elimination of the boundaries of financial services, the creation of new platforms for the provision of financial products through the use of modern technologies and a number of other trends. On the one hand, they increase the availability of financial products and services for various groups of consumers, and on the other hand, they create additional risks of infringement of their interests and rights, new types of financial violations. As a result, all this ultimately affects the functioning of the financial market. The article is devoted to the protection of the rights and interests of creditors and clients in the provision of financial services. The risks in the provision of financial services as a result of the emergence of new financial products are analyzed. The tasks and objectives of behavioral control by the regulatory body are presented. Approaches aimed at improving the protection of the rights and interests of financial service providers and consumers are proposed.

PLANNING STUDY OF HYBRID POWER PLANT SOLAR PV-DIESEL GENERATOR ON KODINGARE ISLAND, SINJAI REGENCY

Kodingare Island is located in Pulau Sembilan District, Sinjai Regency, one of nine islands. Currently, most people still rely on conventional energy from diesel power plants. The reason is that this island does not yet receive an electricity supply from the electricity grid due to the geographical limitations of the archipelago. It is known that the most potential renewable energy source on Kodingare Island is solar energy, with a potential for solar radiation reaching 5.86 kWh/m2/day. This research aims to analyze an innovation that combines PV and solar, where PV acts as the main electricity generator, while solar functions as a backup and additional energy source. The method used in this research uses simulation methods, layout modeling, and financial analysis using HOMER Pro simulation software to determine the potential and performance of hybrid power plants and SketchUp Pro software to produce three-dimensional layouts and economic and feasibility values obtained through financial analysis. Technical aspects include producing an electrical energy system of 37,029 Wh/year, consisting of PV of 32,981 Wh/year and solar of 4,048 Wh/year with energy consumption of 33,850 Wh/year. The required fuel consumption is 2,086 L/year, with excess electricity of 931 kWh/year and renewable energy penetration of 89.1%. From an economic perspective, planning this hybrid power system requires an investment of 258.290.000 IDR, O&M costs of 19.350.600 IDR, and the cost of energy value of 1,352/kWh IDR. In contrast, from the feasibility aspect of planning a hybrid electric power system, it is said to be feasible because it produces a Net Present Value of 9,870,151 IDR, is more significant than zero, the Profitability Index is 1.03 greater than one, the Internal Rate of Return is 8.90% greater than the credit interest rate of 8.43% and the Payback Period required for return of capital is nine years nine months.

Juridical Review of Actio Pauliana Against Bankrupt Boedal Becoming The Object Of Liability

The Bankruptcy and Postponement of Debt Payment Obligations Act of 2004 regulates the bankruptcy process, which involves the conversion of a debtor's personal assets into bankrupt assets. The court appoints a curator and a supervising judge to oversee all of the insolvent estate's assets. The curator may come across legal measures initiated by the debtor against the bankrupt assets during this procedure that might be harmful to creditors. Paulina's action is what the curator can do in these circumstances to ask the court to dismiss these legal actions. The purpose of this study is to comprehend how Paulina's intervention supports the rights of creditors, particularly with regard to mortgage rights.The study used normative legal research and conducted descriptive and qualitative analyses of both primary and secondary data. The findings revealed that Paulina's action can be used to protect the mortgage rights of creditors, provided that certain dejure elements are met. The study highlights the importance of consistency and synchronization of decisions based on the principles and norms of bankruptcy law to achieve legal harmonization.In conclusion, Paulina's action plays a critical role in safeguarding the interests of creditors in bankruptcy cases, particularly regarding mortgage rights. It empowers the curator to cancel legal actions that could harm the creditors and promotes legal harmonization. This study underscores the need for consistent and coherent application of bankruptcy laws to ensure the equitable treatment of all parties involved. Keywords : Actio Paulina, Legal Action, Bankruptcy Law

Monetary policy transmission mechanism in Indonesia period 2002: Q1 – 2020: Q4: interest rate and asset price channel

This study aims to determine and analyze the effect of the monetary policy transmission mechanism on the interest rate channel and asset prices in Indonesia in achieving the ultimate goal of price stability throughout the period 2002:Q1 – 2020:Q4. This study uses secondary data related to policy interest rate variables, operational target interest rates, information variables, and final target variables for each channel of the monetary policy transmission mechanism. The analytical tool used in this research is the Vector Error Correction Model (VECM) which is processed using statistical software Eviews 10. The results of the analysis on the monetary policy transmission mechanism model of the interest rate channel indicate that in the short term, investment lending variables have a negative and significant effect on The CPI, meanwhile, the investment credit interest rate variable has a negative and significant effect. The results of the long-term analysis of the monetary policy transmission mechanism model of the interest rate channel show that the interest rate for investment credit, consumption credit, and the BI7DRR interest rate have a positive and significant effect on the CPI, while the variables for consumption credit interest rates, investment credit distribution, and real GDP negative and significant effect on the CPI. The results of the VECM analysis for the monetary policy transmission mechanism model for asset price channels confirm that the positive Error Correction Term (ECT) coefficient indicates that there is no adjustment mechanism towards long-term equilibrium. The results of the classical assumption test for the monetary policy transmission mechanism model of asset price channels also confirm deviations in the assumptions of normality and heteroscedasticity. Therefore, the economic interpretation of the VECM estimation on the monetary policy transmission mechanism model of the asset price channel cannot be carried out and requires the use of other analytical tools to produce a valid model .

Study on Creditor Remedies in Corporate Capital Reduction

This paper aims to study the remedies available to creditors in the context of corporate capital reduction. It explores the risks and challenges faced by creditors during the process of corporate capital reduction and discusses measures to safeguard their rights and interests. Firstly, it introduces the concept and background of corporate capital reduction, analyzing the potential losses that creditors may suffer in this process. Subsequently, it provides a detailed analysis of the legal framework surrounding corporate capital reduction, including legal regulations, procedures, and a comparison of creditor protection mechanisms under different legal systems. In terms of remedies available to creditors, it examines the exercise of recovery rights, applications for preservation orders, as well as the deadlines and requirements of remedial procedures. By conducting practical case studies, it summarizes the practical experience and effective methods for creditors' remedies. Lastly, it offers suggestions for improving creditor protection measures, such as enhancing laws and regulations, strengthening supervision, and promoting information disclosure. This study provides valuable insights for protecting the rights and interests of creditors in corporate capital reduction. It also contributes to the further enhancement of creditor protection mechanisms by relevant institutions and legislators, thereby fostering the rational development of corporate capital reduction.

Penentuan Nilai Bunga Flat, Efektif, dan Anuitas pada Salah Satu Leasing Motor di Kota Binjai

One company that solves financial problems is a motorbike credit company that can help people who are constrained by costs but want to own a motorbike to make their lives easier. One of the motorbike leasing companies that provides a motorbike credit system. One of the products is the Honda ADV 160 ABS which provides various down payment offers with time periods. In this research, the data used is quantitative data in the form of secondary data obtained from motorbike credit brochures on one of the motorbike rentals in the city of Binjai which were registered in October 2023. This research will analyze and compare the results between the total credit interest that matches the flat interest, annuity interest and effective interest which provide slightly lighter installment or credit installment payments. Based on the results obtained from both samples, the lowest total interest is the effective interest.

Влияние публичного элемента в делах о банкротстве на развитие судебного правотворчества

Bankruptcy is usually perceived as a mechanism for restoring the interests of creditors, social rehabilitation of debtors, and making liable the persons abusing the form of a legal entity, etc. Within the framework of these goals, the institution of bankruptcy is developing in such a way that also affects the classical institutions of civil law, the principles of the civil process, which significantly affects the general (non-bankrupt) civil turnover. The article explains the theses that the development of concepts and instruments new to private law within bankruptcy cases is caused by public goals of bankruptcy, over and above the protection of creditors’ interests, which forms a kind of «creditors’ equity law», whose approaches deform civil turnover and should be taken into account by participants in non-bankruptcy legal relations when structuring transactions and their execution.

Respon Suku Bunga Deposito dan Kredit Bank Umum terhadap Kebijakan Moneter Bank Indonesia

Many phenomena occur in International case studies, and various kinds of research show the relationship between interest rates (deposits and credits) and monetary policy carried out by Bank Indonesia. This type of research is quantitative research with secondary data taken from January 2010 to March 2021 (Time Series data), with two dependent variables: the first deposit interest rate and the second credit interest rate. There are three independent variables: BI Rate/BI7DRR, Economic Liquidity (M2), and Inflation. The analysis technique uses Multiple Linear Regression. The result is that the BI Rate/BI7DRR, Economic Liquidity, and Inflation together have a significant response/influence on deposit interest rates. Likewise, BI Rate/BI7DRR, Economic Liquidity, and Inflation have a practical response/impact on the credit interest rates at commercial banks.

Loan interest rates, credit guarantees, and lifestyle on credit making decisions at financing companies

Loan interest rates play a pivotal role in the borrowing and lending process. They impact the affordability of loans for borrowers, the profitability and risk management for lenders, and are influenced by economic conditions and regulations. Before taking out any loan, it's important to carefully consider the interest rate and its implications for financial situation.This research aims to look at the effect of credit interest rates and credit guarantees on credit-making decisions on financing companies in Batam. This research is a quantitative descriptive study with the distribution of questionnaires to respondents who apply for credit at finance companies at random with a total of 96 responden. From the results of the study, it was obtained that credit rates have a significant effect on credit decision-making, credit guarantees have a significant effect on credit decisions, lifestyle has an insignificant effect on credit-making decisions,and credit interest rates, credit guarantees. and lifestyle simultaneously have a significant effect on credit-making decisions. This research is expected to contribute to the community to be more thorough about the advantages and disadvantages of buying goods on credit. The conclusion is that interest rates and credit guarantees significantly influence credit, and business actors can take even better policies related to interest rates and credit guarantees.

Entrepreneurial risks of property purchasers at bankruptcy tenders

Bankruptcy tenders perform several functions that are aimed at maximizing profits, transparency of the procedure, protection of the private interests of creditors and the insolvent debtor. Contracts concluded at such auctions have significant business risks due to the high probability of their contesting by interested parties, possible legal defects of property and property rights realized at tenders, limited application of contract law to the requirements for the performance of contractual obligations in kind. Participation in the tenders means taking on entrepreneurial risks, provided that the information is disclosed in good faith by the y of bankruptcy officer. The protection of the tender winner interest is limited to the interests of the creditors of the insolvent debtor.

A Shift in the Duties of Directors when the Company is on the Verge of Bankruptcy

The topic of this study is the change of directors' duties with the change of corporate operation status. The main research jurisdiction is the UK, and the main research node is after the company is on the verge of bankruptcy and enters bankruptcy proceedings. The UK law stipulates the general duties of directors in the Companies Act 2006. In the normal operation of the company, promoting the success of the company and protecting the interests of shareholders is almost an accepted fact in corporate law circles. But when a company faces bankruptcy, the duties of directors often change. The UK bankruptcy law stipulates Wrongful trading and fraudulent trading liability to urge directors to consider protecting the interests of creditors when the company is on the verge of bankruptcy. Directors may be legally liable for damage to the interests of creditors due to some improper behaviours. Therefore, in order to avoid being charged, directors will increase the priority of protecting the interests of creditors when the company is near bankruptcy. This study will rely on the relevant provisions of the Company Law 2006 and the enterprise bankruptcy law to analyse the change of directors' duties.

Новації зміцнення стійкості банків Європейського Союзу та їх синхронізація в Україні

Introduction. The European Commission took a new step in the development of the system of financial security of banking sector and protection of the interests of depositors and creditors of banks, approving Document 52023DC0225 “On the review of the crisis management and deposit insurance framework contributing that completing the Banking Union”, which, together with the previously created regulatory framework, are extremely useful for Ukraine in order to harmonize financial legislation with the requirements of the European Union. Problem Statement. Determining the vectors of development, the system of banking regulation and supervision, guaranteeing deposits of various categories of bank` clients in the countries-members of the European Union, as well as preparing recommendations for synchronizing this experience in Ukraine. Purpose. Disclosure of modern trends in reforming the system of banking regulation and supervision, protection of bank depositors in EU countries, as well as outlining prospects for further use of this experience in Ukraine. Methods. General scientific and special methods of analysis, synthesis, grouping, description, comparison, calibration of important elements, abstract and logical, generalization are used. Results. Three pillars are defined, on which the unified system of banking regulation and supervision in the EU member states is based; the concept of “Resolution” in relation to banks is analyzed; the genesis of the EU legislation regarding banks recover and liquidation has been recreated, taking into account the innovations in 2023; a comparative analysis of the approaches of the EU and Ukraine regarding the rehabilitation/liquidation of banks and the banks deposit guarantee system is carried out; conceptual directions for the development of Ukrainian legislation in this area are proposed. Conclusions. The European Union continues to adopt measures aimed at strengthening the financial stability of the Banking Union and increasing trust in banks of all economic entities. The EU is developing a new vector of financial policy aimed at early diagnosis of bank problems, introduction of an adequate crisis management system as opposed to their preventive liquidation. The range of coverage by the deposit guarantee system is expanding not only for the population, but also for businesses, pension funds, municipalities and other bodies, while maintaining the maximum compensation amount of EUR 100,000. The introduction of this approach and other innovations in the system of guaranteeing banking financial security in Ukraine should be considered in the post-war period. At the same time, in our opinion, it would be expedient to form: a fund guaranteeing deposits of socially significant organizations and enterprises with a limit on the size of the maximum compensation; the mechanism of resolution of banks with the corresponding financing fund; the system of early replacement of the management of problem banks and the bail-in mechanism.

Analysis of the Application of the Principle of Freedom of Contract in Home Ownership Credit Agreements in Karanganyar

Home Ownership Credit is an agreement that arises between the bank as the creditor and the customer as the debtor.The creditor provides services in the form of financing for the purchase of a house with the debtor paying in installments according to the chosen tenor. Interest in Home Ownership Credit is very high in the people of Karanganyar Regency, Central Java. The offer of a Home Ownership program that can be paid for by credit is the main reason Home Ownership Credit has such high interest in Karanganyar Regency. Apart from that, government support with several subsidies for Home Ownership Credit is also the reason. Home Ownership Credit will result in a credit agreement between the creditor, namely the bank, and the customer or debtor. Credit agreements are made to ensure legal certainty between the creditor and debtor. The credit agreement made by the bank is in the form of a standard agreement which then needs to be presented to the customer for approval. Clauses made unilaterally by banks result in unequal authority between banks and customers. The economic advantages possessed by banks mean that customers who need financing programs from banks must agree to the standard agreement. The standard agreement in the agreement for granting Home Ownership Credit is the result of the Principle of Freedom of Contract which is intended to ensure that agreements can be balanced. However, in reality, this implementation results in the dominance of one party, namely banking, which has economic advantages. The need factor is the main reason that causes customers to inevitably agree to the standard agreement even though the agreement in it is not balanced.

Specific features of challenging the debtor’s transactions in bankruptcy proceedings

The article characterizes the peculiarities of contesting debtor’s transactions in bankruptcy proceedings in comparison with the general procedure of contesting transactions. The author considers the peculiarities of separate elements of the legal mechanism of challenging transactions, highlights the discussion issues. The conclusion is made that the differences of contestation of transactions of the debtor in bankruptcy from contestation of transactions within the framework of the general order are conditioned by the specificity of public relations, formed in the sphere of application of norms of the Federal Law of 26 October 2002 № 127-FZ “On insolvency (bankruptcy)”, and the necessity of solving the task of satisfying the interests of creditors.

Analysis of Determinants of Credit by Commercial Banks to Indonesia’s Fisheries Sector from the Demand Side

The growth of financial institutions such as banks is crucial to a country's economy. Not only as a source of financing, is banking also able to influence the business cycle of the economy as a whole. Moreover, Indonesia is a developing country that requires development in various sectors. Credit is an effective financing solution and is quite reliable in terms of financing. However, as one of the most potential sectors, the fisheries sector is actually one of the ones that has minimal credit allocation. This phenomenon occurs because it is influenced by several factors, including external and internal factors. In line with this, this study wants to see what influences credit disbursement when viewed from the demand side by making GDP, credit interest rates, and inflation variables. The method used is the quantitative method of the ECM (Error Correction Model) model, which is processed using Eviews 12. From this study, it is known that GDP and inflation have a significant positive effect in the long term, and the lending rate has a significant negative effect on lending. In the short term, GDP, lending rates, and inflation simultaneously have no effect on credit.

The Credit Restructuring as a Step for Bank Financial Rescue

One effort to minimize potential losses from problem loans is that banks can carry out credit restructuring. Implementing credit restructuring for problem loans means that debtors can again fulfill their obligations to the bank, namely in the form of paying principal installments and/or credit interest which has been given relief tailored to the debtor's capabilities. The result of credit restructuring is that the debtor's business continuity becomes viable again so that the debtor can fulfill his obligations to the bank. The obstacles that arose in the restructuring process were able to be overcome by the bank optimally and proportionately. The solution adopted is also a method that is profitable for both parties, so that both parties (debtor and creditor) avoid the element of loss.

Analysis of Customer Intention in Home Ownership Credit Products (KPR) Using Murabahah Contracts at BSI KCP Ciputat

The aim of this research is to analyze the influence of Sharia KPR characteristics, price levels and financing procedures on customer interest in Home Ownership Credit (KPR) products at Bank Syariah Indonesia (BSI) KCP Ciputat. This research method uses a quantitative approach by conducting a survey of 120 active customers of Bank Syariah Indonesia (BSI) KCP Ciputat. This research uses structural equation analysis (SEM-PLS) to evaluate the relationship between constructs. Next, the data was processed using SMARTPLS 4 software. The results or findings based on the results of the analysis that have been carried out can be concluded that there are two significant variables, namely 1) the price level variable 2) the financing procedure variable. These two variables have a significant effect on interest. On the other hand, the characteristics of Sharia KPR do not have a significant effect on customer interest in KPR products using murabahah contracts at Bank Syariah Indonesia (BSI) KCP Ciputat.

Research on the Impact of Green Credit Policy on Corporate Environmental Social Responsibility

Since the 1970s, my country's industrialization process has continued to advance. However, with the improvement of economic level, the contradiction between my country's economic growth and environmental protection has become increasingly prominent. Green development has become an important principle guiding the high-quality development of my country's economy in the new era. In response to increasingly severe environmental problems, my country promulgated the "Green Credit Guidelines" in 2012, requiring financial institutions to include enterprises' environmental performance into credit review standards, implement differentiated credit interest rates for different enterprises, and raise the threshold for corporate loans. Penal high-interest credit is issued to highly polluting enterprises to limit the blind expansion of pollution-intensive industries. Since debt financing from banks and other financial institutions is the main source of funds for Chinese enterprises, changes in credit principles will inevitably affect the business and development strategies of enterprises. Then, can the green credit policy promote high-polluting enterprises to undertake environmental and social responsibilities? This issue deserves our in-depth study. This article designs a quasi-experimental based on the "Green Credit Guidelines" promulgated in 2012, constructs a difference-in-difference model to study the impact of green credit policies on corporate environmental responsibility levels, and analyzes the transmission mechanism of this impact. At the same time, it analyzes the differentiated impact of the "Green Credit Guidelines" on corporate environmental social responsibility under different enterprise sizes, proportions of institutional investors, regional legal environments, and factor market development levels.