Issuance Of Loans Research Articles

Unfair Online Lending Practices in the Light of Judicial Practice

The author examines unfair practices of providing loans using a remote method of interaction with the borrower. It proves that the introduction of new technologies into banking often makes it even more difficult for citizens to understand the content of concluded contracts. He notes that one of the problems of using the remote format of concluding contracts in banking was the use by third parties of various fraudulent schemes to gain access to the personal accounts of bank customers and issue loans to them, followed by transfer to the accounts of third (unidentified) persons. Banks, formally complying with the requirements established for the conclusion of consumer loan agreements, actually deprive customers of the opportunity to familiarize themselves with the terms of lending, and also do not always check the compliance of the nature of the use of funds the usual nature of account transactions.

“An Analysis of Rangareddy District Central Co-operative Bank's Financial Performance”

Cooperative banks offer loans and other services to farmers and rural populations in a timely manner. However, the bank's operating efficiency and financial stability will be impacted by any loan repayment default. Funds are halted as a result of NPA, which lowers interest income and results in a cash shortage. Operating bank services, such as processing regular payments and dues, is undoubtedly made more difficult by this. Cooperative banks are currently under a lot of stress, which is resulting in decreased working profits as well as a decline in productivity and efficiency. It is a known truth that NPAs are rising and recoveries are poor. The paper's goal is to evaluate Rangareddy DCCB's claim of 0% Net NPA. As a result, a number of bank financial metrics are examined in the study. According to the current study paper's conclusion, farmers were able to obtain sufficient funding for crop cultivation thanks to the ongoing process of monitoring loan issuance and recovery efforts, which demonstrated a profitability in association with loan and non-performing asset provision.

Static and Dynamic Modeling of Non-Performing Loan Determinants in the Eurozone

The issue of non-performing loans (NPLs) in a bank’s portfolio is important for a bank’s stability and sustainability. Their increased presence indicates a potential worsening of the economy and a lower quality of the bank’s assets. We estimated determinants of non-performing loans in the Eurozone for quarterly data 2015–2020. The results confirmed spatial spillover effects within Eurozone countries, which means that when a shock happens in one country in the Eurozone, it will also affect the other economies of the Eurozone area. Based on the Hausman test, a fixed-effects model was chosen as appropriate and showed that bank-specific and macroeconomic determinants significantly affect NPLs in these economies. In relation to previous studies that dealt with this issue, a co-integration analysis was introduced. A significant impact of return on assets, return on equity, and the loan-to-deposit ratio, as well as the gross domestic product, inflation, and exchange rate on NPLs in the short run and long run, was confirmed using a Pooled Mean Group (PMG) estimator. Bank management should customize credit policy based on both internal and external conditions to improve their performance, focusing on enhancing profitability and maintaining a lower loan-to-deposit ratio to reduce NPLs. The research suggests that a higher gross domestic product (GDP) growth rate is associated with fewer NPLs, while inflation uncertainty and a volatile exchange rate can increase NPLs, highlighting the importance of adjusting strategies to the macroeconomic landscape.

Research on the Bankruptcy Tendency of the United States Bankrupt Commercial Banks during the 2008 financial crisis

With the rapid development of the financial market, banks are faced with increasingly frequent capital flows and rapidly changing business environment. It is an important prerequisite for commercial banks to control their liquidity risk to deeply study the causes of liquidity risk and clarify its economic consequences. In the financial crisis during 2007-2009, American commercial banks were directly impacted by liquidity risk. The characteristics of their bankrupted banks are of great significance to the study of how to avoid bank liquidity losses. This study found that in aspect of the probability of commercial banks bankruptcy, the larger scale the banks’ current deposit is in the initial stage, the larger rate of the loan is. The larger the loan issuance ratio is in perportion, the worse the liquidity management of commercial banks’ efficiency acts. And other characteristics make the bank's bankruptcy probability greater. This result has reference significance for commercial banks in China.

The impacts of China's shadow banking regulation on bank lending—An empirical analysis based on textual analysis and machine learning

China's financial regulatory authority has strengthened shadow banking regulation in recent years, the impact of which has attracted the attention of academics and policymakers. We develop China's shadow banking regulation intensity change index using textual analysis and machine learning methods and explore the impacts of the regulation on bank lending. Using a fixed effect model and a dataset of 177 commercial banks in China from 2007 to 2020, we find that strengthened shadow banking regulation results in shrinkage in bank loan scale and lower loan growth. Mechanism analysis reveals that the asset-reallocation motives and profit-seeking motives generated by banks faced with strengthening regulation lead to a decline in bank lending. The credit tightening effect mainly exists in joint-stock, city, and rural commercial banks while insignificant in state-owned banks. This effect can be moderated by ample capital, abundant deposits, and high loan issuance efficiency. Strengthened regulation also affects loan composition, with an increase in the proportion of corporate lending and a decrease in mortgage lending. Our results have novel implications for both regulators and banks and are robust to several tests.

FEATURES OF SMALL AND MEDIUM-SIZED BUSINESSES IN RUSSIA

The article examines the features of small and medium-sized businesses in Russia since 2019. Its role in the modern market economy and directions of development are revealed. The article examined statistical data on the small and medium-sized business sector: employment, profitability, share in GDP, dynamics of the number of enterprises, and also analyzed the state of the business climate of small and medium-sized enterprises in Russia using the RSBI index. The dynamics of these indicators over the past four years are considered. It is noted that the main point of development of the sector is the increase in its share in GDP; in developed countries this figure is significantly higher than in Russia: in our country it has been at a low level throughout 2019-2021. The article also analyzes the role of small and medium-sized businesses in the economy of the Udmurt Republic: indicators such as the share of small and medium-sized businesses in the republic’s GRP, as well as the share of loans to small and medium-sized businesses in the total issuance of loans by banks are considered. The topic of the efficiency of economic activity of small and medium-sized enterprises in Russia and labor productivity in them is considered. The directions for the development of measures to support small and medium-sized enterprises are analyzed. A comparison has been made of some aspects of running and features of small and medium-sized businesses in the USA. The main directions for the development of SMEs have been identified and disclosed. The importance, weaknesses and strengths of small and medium-sized businesses in Russia, as well as ways to improve the situation of small and medium-sized businesses in Russia are analyzed. New directions for the development of small and medium-sized enterprises have been studied.

Mapping Non-Performing Assets: Figures from Dimension AI database

The issue of non-performing assets (NPAs) or non-performing loans (NPLs) presents a significant challenge in the financial sector, affecting the stability and profitability of financial institutions globally. Conducting a bibliometric analysis of NPLs aims to understand the current research landscape and identify opportunities for future study, ultimately contributing to the development of effective strategies to manage and mitigate the impact of NPLs. Systematic review analyzes articles in Banking, Finance, and Investment, focusing on Non-Performing Assets (NPAs) or Non-Performing Loans (NPLs) published between 2020 and 2024. 33 documents were selected based on relevance to the topic. Through rigorous filtering and review, key insights, methodologies, and findings were extracted from the selected articles. Articles related to Non-Performing Assets/Loans, the Malaysian Management Journal emerged as the most cited publication, with five citations. The research conducted by the Institute of Cost Accountants of India and Vidyasagar University also garnered considerable attention. Among the individual papers, those authored by Maity and Tarak Nath received five citations each. The findings of the study highlighted key themes including Efficiency Decline, NPL Impact on Performance, Capital Adequacy Influence, Credit Risk Moderation, Persistent NPA Challenges, and Complex Factors Contributing to NPLs. These findings underscore the multifaceted nature of NPAs and NPLs, emphasizing their significant impact on the banking and finance sector. Study underlines landscape of NPAs/NPLs, identifying key themes, influential publications, and authors, thus guiding future research directions and strategic interventions for managing NPAs/NPLs in the financial sector. bibliometric analysis of NPAs/NPLs in Banking, Finance, and Investment fields from 2020 to 2024.

Systemic bank runs without aggregate risk: How a misallocation of liquidity may trigger a solvency crisis

We develop a general equilibrium model of self-fulfilling bank runs. The key novelty is the way in which the banking system’s assets and liabilities are connected. Banks issue loans to entrepreneurs who sell goods to households, which in turn pay for the goods by redeeming bank deposits. The return on bank assets is thus contingent on households being able to withdraw their deposits. In a run, not all households that wish to consume manage to withdraw, since part of banks’ cash reserves end up in the hands of households without consumption needs. This misallocation of liquidity lowers revenues of entrepreneurs and bank asset returns, thereby rationalising the run. Interventions that restrict redemptions in a run can be self-defeating due to their negative effect on demand in goods markets. We show how runs can sometimes be prevented with combinations of deposit freezes and redemption penalties as well as with the provision of emergency liquidity.

Research on the Role of Platform Economy in Credit for Small and Micro Enterprises - A Case Study of Alibaba

In the financial market, the financing needs of the micro-economy are concentrated at the long tail, and its development has always been a focus of social attention. In recent years, China has made significant efforts to address the financing challenges faced by small and micro enterprises. Despite these efforts, the financial support allocated to these enterprises remains disproportionate to their economic contributions. Unlike large and medium-sized enterprises, small and micro enterprises (SMEs) still struggle to obtain adequate financial resources, highlighting the incomplete coverage of the current Chinese financial system. As a result, these enterprises continue to encounter difficulties in securing necessary funding. Fintech can help these enterprises choose financing platforms and methods that match their development, enrich their financing channels, improve the loan issuance efficiency of financial institutions, precisely support their development, and ensure that the interests of stakeholders are realized. The report from the 20th National Congress emphasized the importance of establishing a supportive environment for the advancement of technology-driven SMEs. It also advocated for fostering the growth of specialized and innovative companies. This initiative sends a clear signal encouraging SMEs to innovate independently, which will undoubtedly have an important and far-reaching positive impact. However, SMEs are financially fragile, with prominent contradictions between their financing needs and the financial supply side. The integration of finance and technology has changed the operational mechanism of the financial industry. Fintech companies, through the application of emerging technologies, have expanded their business scope to long-tail small and micro clients, bringing new platforms for financing to these enterprises. This paper studies the case of Alibaba’s “Digital Hybrid Trade Show” initiative to further explore how fintech can be more effectively applied to the financing of SMEs, thereby aiding their stable and healthy development.

Credit Card Client’s Payment Prediction for Next Month Using Machine Learning Algorithms

With the quick growth of the credit card system, there is a rising number of misconduct rates on credit card loans, which creates a financial risk for commercial banks. Thus, successful resolutions of the risks are significant for the sound advancement of the industry in the long term. Numerous financial banks and organizations become more and more attentive to the issue of credit card default because it brings about a high probability of financial risks. Credit risk plays a significant part in the financial business. One of the main functions of a bank is to issue loans, credit cards, investment mortgages, and other credit. One of the most popular financial services offered by banks in recent years has been the credit card. With its constant rise in risk factors, the banking industry is perhaps the most fragile and volatile in the world. Credit risk remains a crucial element for financial institutions that have experienced losses amounting to hundreds of millions of dollars as a result of their incapacity to retrieve the funds disbursed to clients. In the banking industry, it is now vital to forecast whether a borrower will be able to repay the loan. In this paper, we applied different machine learning classifiers, including Random Forest, K Nearest Neighbor, Logistic Regression, Decision Tree, Decision Tree with AdaBoosting, and Random Forest with AdaBoosting, to build a credit default prediction model. The results show that the AdaBoosting model achieved better accuracy than the other machine learning algorithms. Our proposed technique can support financial organizations in controlling, identifying, and monitoring credit risk, and it can identify credit card clients who pay the loan in the next month.

Корпоративные инициативы духовенства Тобольской епархии по материальному обеспечению священно-церковнослужителей (последняя четверть XIX – начало XX в.)

The article deals with the initiatives of the clergy of the Tobolsk diocese in the issue of material provision of clergy and clergymen in the last quarter of the XIX - early XX centuries. The article characterizes the clergy in the context of the socio-economic status of clerics, based on the regional material. It shows the transition from institutional to corporate method of material provision of the clergy due to the critical attitude of the clergy to the reforms of the pension system, as well as the process of formation of new forms of non-state pension provision among the clergy. For the first time on the basis of the material presented in Tobolsk diocesan bulletins the evolution of the statute of the mutual aid fund of the clergy of the Tobolsk diocese, as well as the factors that influenced its changes and additions were traced. It is shown that in the process of administration of the new diocesan structure there were issues that were not spelled out in the first draft of the fund, which did not provide for all cases of issuing a lump-sum allowance, return of membership fees to the participants of the fund and the issuance of refundable loans and required immediate consideration. On the basis of the reports of the Mutual Aid Fund of the clergy of the Tobolsk diocese the cash flow, the issuance of lump-sum allowances and loans of the Mutual Aid Fund of the clergy of the Tobolsk diocese in 1894-1914 are traced. The author comes to the conclusion that the evaluation of the activities of the mutual aid fund of the clergy of the Tobolsk diocese can not be considered only through the prism of the received lump sum benefits and loans. In spite of the fact that the main task of the fund was not achieved - the transformation into an emeritus fund, and the clergy did not receive non-state pensions, it was possible to achieve a positive impact on the material situation of the clergy, who were in extremely difficult financial situation.

Private Loan Issuance and Risk Factor Disclosure

ABSTRACT This study provides evidence that private loan issuance offers opportunities for borrowers to learn new information about their own risks and subsequently disclose such information in their risk factor disclosures (RFDs) to satisfy lenders’ demand for transparency about borrowers’ risks. This loan issuance effect on risk disclosures is more pronounced when greater learning opportunities are present and when lenders have a stronger demand for borrowers’ risk information transparency. Further analyses suggest that the enhanced risk disclosures following loan issuance not only benefit lenders by reducing the costs of accessing the secondary credit markets, but also create spillover benefits for equity investors by increasing risk information about the borrower and reducing uncertainty about the borrower’s risk. Taken together, these findings suggest that borrowers’ private interactions with lenders provide new opportunities for managers to generate and reflect fresh information in corporate risk disclosures, ultimately benefiting a wide range of capital market participants. Data Availability: Data are available from the sources identified in the paper. JEL Classifications: G21; G32; M41.

Loan repayment behavior of beneficiary farmers in primary agricultural cooperative societies in Haryana (India)

Abstract Subject and purpose of work The study examined the loan repayment behavior of beneficiary farmers in Primary Agricultural Cooperative Societies in the State of Haryana, India. Material and methods The findings were based on primary as well as secondary data. The secondary data was collected for the period of 2006-2007 to 2018-2019. The primary data was collected in the second quarter of 2022. Results The study concluded that year-wise the maximum percentage of defaulter farmers was 34.97% in 2008-2009 due to the debt relief scheme announced by the Government of India in 2008. Furthermore, it revealed that about 75% of beneficiary farmers repaid their loans regularly after receiving the benefit of interest subvention at 7% by the government of India and the state government. The findings on primary data concluded that most farmers have been repaying their loans regularly, and less than 10% of beneficiary farmers defaulted. The main reason for the default was a loan without security and the anticipation of a loan waive-off scheme. About 19% of beneficiary farmers have been repaying their loans irregularly due to the short time within which loan repayments needed to be made. Conclusions The short time of loan repayment is the main cause of irregular loan repayment behavior. The period of repayment of loans should be extended for one year and it should be considered from the loan issuance date.

Mortgage Lending in the Russian Federation

Relevance. Today in Russia, more than half of the population feels the need to improve their housing. However, the opportunity to purchase housing without the help of borrowed funds is available only to a small group of citizens. Mortgage lending is the only way that allows you to purchase your own home and make it affordable for the population in Russia. The purpose of the study is to study the current state of mortgage lending in Russia, in particular, changes in average terms, interest rates on mortgages and leaders in the mortgage lending market.Objectives: to identify the role of mortgage lending in the Russian Federation; reflect the features of mortgage lending in Russia; analyze the mortgage lending market and its participants.Methodology. During the research process, general scientific methods were used: scientific abstraction, analysis and synthesis, generalization of scientific practice, deduction, induction.Results. The study shows that mortgage lending in Russia is actively developing. The availability of mortgages depends on the relationship between the level of income of the population and housing prices. The Russian market is now experiencing high real estate prices and, accordingly, high rates for this type of lending. All these factors hinder the development of the mortgage lending market, which is why the growth rate of mortgage lending has been declining in recent years.Conclusions. The increase in the volume of issued loans largely depends on the weighted average interest rate on mortgage loans. At the beginning of 2023, the weighted average rate on mortgage loans in Russia was 6.65% per annum, which was lower than at the beginning of the previous five years. In 2020, new types of preferential categories were introduced, which had a positive impact on the mortgage market as a whole. From an analysis of data on the issuance of mortgage loans in Russia over the past four years, it is clear that Sberbank and VTB are the leaders in mortgage lending in Russia, controlling most of the market.

A New Formulation of Interest-Bearing Capital and Debt: A Marxian Perspective on the Circuit of Capital

This article refines the analysis of interest-bearing capital and debt in Marx’s circuit of capital, incorporating Kōzō Uno’s critique for a more precise depiction. It reassesses Marx’s model of interest-bearing capital () and Uno’s distinction between creditor and debtor roles, proposing an advanced model that highlights the role of financial instruments () and debt (). The form of money-lending capital for the creditor is articulated as , where represents the issuance of a loan and the collection of debt. On the other hand, the form of merchant capital with debt for the debtor is depicted as , incorporating both the borrowing () and repayment () processes within the form of merchant capital. This approach not only clarifies the transactions between creditors and debtors but also builds upon Uno’s theoretical contributions, offering a comprehensive framework for understanding the dynamics of interest-bearing capital and the movement of capital with debt. The revision aims to elucidate the processes of loan issuance, debt collection, borrowing, and repayment, rectifying previous conceptual oversights and offering a solid foundation for future economic research.

Financial Challenges Among Public School Teachers: Basis for Proposed Program

Financial challenges can arise from various personal and external factors, and understanding the intersection of individual perspectives and societal influences is crucial for addressing these challenges effectively. To understand the lived experience of financial challenges, a qualitative research design, precisely Moustakas’ Transcendental Phenomenological approach, was employed. The selected public school teachers of District 5, Division of Oroquieta City, served as the key informants. The prevailing financial challenges teachers encounter in public schools represent a pressing matter that warrants attention and proactive measures. The study revealed that public school teachers face financial challenges due to their family needs, education for their children, stagnant salaries, rising healthcare expenses, and the necessity of personally funding classroom supplies. The prevailing issue of teachers' loans has become increasingly over the years due to their commitment to provide for the needs of their family, personal, and even work. Their financial literacy practices could better determine how they manage their finances. Thus, authorities should discuss the salary wages of public school teachers, giving incentives and other funds to support any contingency that might occur to alleviate the financial constraints they experience.

Мероприятия Ростовской конторы Государственного банка по развитию торгово-промышленной деятельности в Области войска Донского во второй половине XIX – начале XX века

Failures in the Crimean War, the ruined national economy and the crisis in the economy put into great doubt the future of the Russian Empire as a leading European power. The tsarist government saw overcoming the technological, military-technical and economic lag of Russia from the capitalist countries in the restructuring of the existing banking system. Shifts in the financial sector led to the opening of the State Bank, which carried out credit and financial operations for the development of commodity-money relations with the country. In the Don region, credit and financial support for local sectors of the national economy was provided by the Rostov office of the State Bank. The economic situation of the Don Army Region led to lending primarily to representatives of the peasant population, merchants and firms selling grain crops. The author studies the production of operations for the issuance of grain loans Separately, the influence of elevator facilities on the development of grain trade in the south of Russia is considered. The activity of the Rostov office of the state bank in the field of issuing a loan for the purchase of agricultural tools is analyzed. The influence of the Rostov office on lending to medium and large businesses of the Province of the Don Cossack Host is investigated.

Financial support for agricultural enterprise: indicators and performance results

The goal is to assess the results of production activities of agricultural enterprise, final financial indicators and its overall financial condition, depending on the volume of state financial support. Methods – comparison of calculated levels of dynamics of economic activity of an economic entity, abstract-logical, generalizations. Results - the state of the existing mechanism for providing budgetary funds to agricultural formations is analyzed. The trends in receiving financial assistance from the state are considered based on the use of information about their goals, strategy and competitiveness. The parameters of production of crop and livestock products at the analyzed facility over the past five years have been studied; for the same period, the volumes of funding received have been indicated, the amounts of which are not stable over the years; a direct relationship between the increase in the amount of subsidies and the increase in the volume of products produced has been substantiated. The one-sided nature of the amounts of financial investments provided, which are focused mainly on the crop production industry, is noted. The author states that despite the decrease in production indicators, there is a significant increase in gross and net profit, which helps improve the financial position of the agricultural company. Conclusions - as measures to improve the system of providing financial support to agricultural producers, it is advisable to increase public investment in agricultural enterprises in priority areas, primarily for the production of livestock food products, as well as to reduce interest rates; provide for the issuance of loans for the development of livestock farming. To ensure the sustainable functioning of an agricultural enterprise, an effective economic instrument is needed, based on a combination of state regulation and self-control, and the implementation of a balanced pricing and financial and credit policy.

Analysis of Customer Management of Commercial Banks

At present, most traditional commercial banks tend to design products based on their own interests and use universal standards to issue loans to customers. They rarely provide customized and personalized services based on the actual situation of customers, or not even trying to understand customers’ financial service needs. From the perspective of customer relationship management, there are still many problems and areas for improvement. This paper takes the JB branch of the Bank of Ningbo in China as an example. By sorting out the customer relationship management theory, this paper organizes and categorizes the research results on customer relationship management of commercial banks and proposes that commercial banks should provide customized and personalized services for different customer groups. The theoretical basis of services is designed to provide reference for the modern development of commercial banks.

Lender Capital Management and Financial Covenant Strictness

ABSTRACT We provide evidence that lenders with lower regulatory capital issue loans with lower financial covenant strictness, consistent with such lenders viewing borrower covenant violations as costlier. This is because a borrower covenant violation may lead the lender to downgrade the loan, which triggers accounting that further reduces regulatory capital. Because of regulatory scrutiny, this is true even if the lender waives the violation. We find that this association is concentrated in performance covenants rather than capital covenants. We also find that lenders with relatively low capital issue loans with lower amounts and shorter maturities, consistent with such lenders replacing covenant protection with stricter loan terms on other dimensions. Finally, we find that this form of lender capital management extends to loan syndicate participant lenders, in that participants with relatively low capital adequacy take smaller loan shares when the lead arranger sets high covenant strictness. Data Availability: Data are available from the public sources cited in the text. JEL Classifications: G21; M40; M41.