Loan Interest Research Articles

Impact of Microcredit on Poverty Reduction in Bangladesh: a cross-sectional study

Purpose: Usually, microcredit is known as the providing of “small loans” to the poorer group of the population although it differs from country to country. Many poor and hardcore poor people have been taken the microcredit to reduce their poverty. This study aimed to detect the impact of microcredit on poverty reduction among different levels of poor people. Methodology: Primary data were collected using cluster sampling from the 14 different slum areas from Sylhet city in Bangladesh (n= 408) based on a semi-structured questionnaire during October 2023 to December 2023. Descriptive statistical analysis and Generalized Estimating Equations (GEE) were used to analyze the data. Findings: It was observed that among the participants 76% are male and 24% are female. Around 84.1% individuals were taking microcredit from the different NGOs and among them 91.6% got benefit from their loan and their income was increasing 14.6% as well. It was also observed that 54.4% people are anxious about their food and 15.9% people are sleeping with hunger. Results also revealed that after taking microcredit the average percentage of hardcore poor people are significantly decreased compared with non-poor. It may indicate that after taking microcredit hardcore poor people invest their loan more appropriately compare to poor and non-poor groups of people. Conclusions: Taken together, we conclude that microcredit might play better role for hardcore poor people. To get more success of microcredit and hence for sustainable development- government and non-government organizations should pay more attention to reduce the interest rate of loans.

Financing and online recycling channel decisions in a closed-loop supply chain

In the context of “Internet + recycling”, remanufacturing enterprises seek cooperation with recycling platforms to develop online recycling channels. Given that many manufacturers have capital constraints in the recycling and production process, we consider bank and recycling platform to provide financial assistance to the manufacturer. This paper constructs a Stackelberg game model under bank financing and recycling platform financing based on two forms of online recycling cooperation: entrusted recycling and direct recycling. Through the comparison of equilibrium profits, the participants’ financing and recycling channel preferences are explored. The results show that the recycling platform is willing to provide financing service for the manufacturer with a larger capital gap, but there are feasibility conditions for the setting of its loan interest rate. The manufacturer with less initial capital tends to choose the financing scheme with a relatively low interest rate, while the reduction of capital gap increases the propensity for bank financing. The lower platform commission prompts the manufacturer to implement direct recycling, and the increase in cost saving rate of remanufacturing and platform interest rate makes the superiority of direct recycling even more significant. However, entrusted recycling is always more profitable for the recycling platform regardless of the financing scheme. Furthermore, differentiated product sales and portfolio financing can have a certain impact on the manufacturer’s financing and recycling decisions.

Regulatory Framework of P2P Lending in India: Market Stability and Financial Inclusion Implications

Peer-to-peer (P2P) lending has revolutionized the financial industry by offering an alternative to conventional banking. It facilitates direct connections between lenders and borrowers via online platforms. This research paper examines the regulatory framework governing P2P lending in India, introduced by the Reserve Bank of India (RBI) in 2017, and its implications for market stability and financial inclusion. The study highlights the benefits of P2P lending, including greater acceptance, regional inclusivity, reduced costs, and faster loan approvals. It also explores the challenges posed by regulatory measures, such as caps on lending and borrowing, compliance costs, and operational hurdles, which can limit the impact on financial inclusion. The role of transparency in borrower information is analyzed, demonstrating how it influences loan interest rates, reduces adverse selection, and facilitates the formation of borrower groups based on credit ratings and social capital. Despite the significant benefits of enhanced transparency and regulatory oversight, the paper identifies ongoing challenges, including privacy concerns and information asymmetry. The findings underscore the need for continued regulatory refinement and collaboration among stakeholders to fully leverage the benefits of P2P lending in promoting financial inclusion and market stability in India. By addressing these challenges, P2P lending platforms can more effectively meet the credit needs of underserved populations, thereby contributing to a more inclusive financial system.

INVESTING IN GIRLS FUTURE: AN ANALYSIS OF LEVEL OF AWARENESS OF SUKANYA SAMRIDDHI YOJANA SCHEME

A government-backed savings program called Sukanya Samriddhi Yojana (SSY) aims to improve the financial stability of Indian female children. Using an Analysis of Variance (ANOVA), this study investigates the association between income levels and awareness of the Sukanya Samriddhi Yojana. 150 investors living in the Alappuzha District provided the data. To determine the impact of revenue on the degree of SSY Account awareness, six parameters based on awareness are chosen. Interest rate, tax benefits, withdrawals, account transfers, internet services, and loan facilities are the six parameters that were chosen for this investigation. The results of the ANOVA test showed that income levels had no bearing on awareness levels regarding interest rates and online services, but they did in the cases of tax benefits, withdrawals, and transfers. The research highlights the necessity of focused awareness initiatives to close the knowledge gap and guarantee that everyone may benefit equally from the Sukanya Samriddhi Yojana. Policymakers can improve the scheme's efficacy and reach by tackling these discrepancies, which will ultimately help financially empower female children across all socioeconomic classes.

DETERMINANTS OF MONETARY VARIABLES AND PHILIPS CURVE TESTING OF INFLATION IN ASIAN COUNTRIES

This study examined the impact of monetary variables on inflation and determined the validity of the Phillips curve in the Asian context. It applied a quantitative methodology with a descriptive orientation. The data source utilized was the World Bank from 2013 to 2022, and the analysis approach employed was panel data regression. The research findings indicate that the money supply variable (M3) has a limited impact on inflation. Simultaneously, both GDP and loan interest rates substantially impact inflation. Conversely, money supply (M3), GDP, male unemployment, and loan interest rates simultaneously influence inflation in Asian countries. The study's findings indicate that unemployment does not exert a noteworthy detrimental impact on inflation, demonstrating the ineffectiveness of the Phillips curve for non-Asian nations. Each ASEAN member state implements diverse policies to manage and control the inflation rate. Hong Kong can enforce price monitoring measures to deter market manipulation. Vietnam could enhance its trade policy to alleviate the consequences of imported inflation. Korea can sustain interest rates at a moderate level. Indonesia can synchronize monetary and fiscal policies in order to manage inflation.

The Impact of Government Macro-Control on Commodity Housing Prices in China: An Analytical Study

The Chinese government has implemented macro-control measures to stabilize soaring housing prices, yet the effectiveness of these interventions remains largely unexamined. This study evaluates the impact of macroeconomic policies on commodity housing prices by considering both supply and demand factors and aims to construct a concise, robust simulation model. This model will serve as a reference for the government in establishing a systematic, strategic, and enduring macro-control mechanism for the real estate sector. Our model integrates four key variables: development/consumption stage tax rates, lending rates, and land prices, to simulate their collective influence on commercial housing prices. The findings indicate that: (1) the development stage tax rate and loan interest rates significantly enhance prices, demonstrating a strong positive feedback, whereas the consumption stage tax rate exerts a minimal negative impact; (2) land price exhibits the most substantial positive feedback effect on housing prices, primarily from the supply side; (3) adjusting land prices through land policy and modulating the development stage tax rate through tax policy are crucial for managing real estate development effectively; (4) a combined approach of adjusting land and development stage tax rates, supported by monetary policy, can significantly enhance the effectiveness of China’s real estate macro-policy regulation.

Information transmit strategy of e-commerce platform with financially constrained supplier

A signaling game model is constructed in the framework of a supply chain system consisting of a financially constrained supplier and an e-commerce platform acting as marketplace and a creditor simultaneously. The primary concern of this work is to investigate how the e-commerce platform, which has superior information about market demand, indirectly communicates this information to the financially constrained supplier through its marketing efforts. Under both separating and pooling equilibria, the decisions and profits of each member of the supply chain are firstly considered. Furthermore, using an “intuitive criterion”, the e-commerce platform’s dominant strategy and its influencing factors are analyzed. The results show that when there is a significant difference in the marginal marketing costs, the platform tends to choose the separating equilibrium. When the difference in marginal marketing costs is relatively slight, the e-commerce platform’s dominant strategy depends on the capital of the supplier and the level of market demand fluctuations. Specifically, the e-commerce platform will select the pooling equilibrium when market demand fluctuations are minimal, but the platform will select the separating equilibrium when market demand fluctuations are substantially large. If the supplier’s capital is increased within a certain range, the e-commerce platform is more motivated to select the pooling equilibrium. In addition, the platform usage fee ratio, the platform loan interest rate and the supplier’s prior beliefs are important factors influencing the platform’s decision.

Fish Biodiversity and Suggested Conservation Measures of Transboundary River Someshwari in Netrokona, Bangladesh

Considering the importance of fish biodiversity for sustainable management of river fisheries, this study aims to explore and evaluate the fish biodiversity of Someshwari River along with conservation measures from November 2020 to October 2021. Data collection was carried out in Jaria, Susang Durgapur, Shivganj Bazar and Bijoypur of Netrokona district. Questionnaire interview, Focus Group Discussion (FGD), Direct observations, Key Informant Interview (KII) was used to collect data. During the study period, 23 species under 12 families were determined. Among them 6 finfish species are endangered, 4 are critically endangered, 5 are vulnerable, 7 are data deficient, and 2 are not threatened, respectively which includes highest catch catfishes at about 26.62%. However, the lowest amount catch constituted the Miror carp of about 5.29%. After the catfish, the second highest catch was 15.9% of small prawn. Another dominant group major carps contained 11.26%, and barbs remained at 11% of the catch and the loaches constituted 1.3% of the total catch. In addition, other groups like Mola carplet 7%, gourami 2.20%, Spiny eels 9.86% etc. were found in the Someshwari river. There were about 81% fish for food and 17% ornamental fish. Fourteen distinct types of fishing equipment were used namely: nets, traps, hooks, and lines, and wounding equipment. Finally, indiscriminate use of harmful gear, extraction of sand and rock, inadequate supervision of Governments and Non Governemental orgazizations, pollution from the adjacent areas, high interest rate of bank loan were understood as common constraints in the study area. Therefore, recommendations were made to improve river fisheries management through habitat restoration, increasing public awareness, prohibition on exploiting brood fish and active participation for sustainable catch.

Interplay between the agriculture firm’s guarantee strategy and the e-commerce platform’s loan strategy with risk averse farmers

Many agricultural firms procure products from smallholders and sell them on platforms by paying a proportional fee. Generally, smallholders lack capital for production, and e-commerce platforms can provide loans to them. However, smallholders are risk averse, leading them to make conservative production decisions. Additionally, smallholders face bankruptcy risk due to output uncertainty and the interest burden of platforms’ loans. These factors further adversely affect smallholders’ conservative decisions. To alleviate this situation, the firm can provide loan guarantees for smallholders. This study considers a supply chain consisting of risk-averse farmers, an agricultural firm, and an e-commerce platform. The firm first decides the number of farmers to provide guarantees, and then the platform sets loan interest rates for guaranteed and non-guaranteed farmers. Thereafter, the firm decides purchase prices, and each farmer decides his production input. Given the number of guaranteed farmers, we find that the platform will charge each farmer a positive loan interest if the proportional fee is small, but it will offer interest-free (non-negative) loans to guaranteed (non-guaranteed) farmers if the proportional fee is large. Additionally, with the increase in guaranteed farmers, the firm’s profit and the farmers’ utilities are not necessarily monotonic. We further show that guaranteeing a portion of farmers is always detrimental to the firm but may be better for all the farmers. Therefore, it is better for the firm to provide a guarantee to all farmers or just offer no guarantee to any farmer, depending on the magnitudes of proportional fees and the production input efficiency.

Generationenkapital gleich Zockerkapital? – die implizite Ziel-Performance des Referentenentwurfs

Abstract The following article shows that the objectives of the draft bill, which are being pursued with generation capital, namely the creation of foundation assets of 200 billion euros and annual distributions of 10 billion euros, are achieved without loan interest at a performance of 3.26%. If the foundation has to pay interest on the loan, the required performance increases, but the spread decreases steadily from the initial 3.26%. If the target distributions are to increase dynamically in the future, a performance of around 0.3 percentage points higher would be required as long as the federal government continues to grant loans. This performance appears to be realistically achievable in the long term. Nevertheless, its financial contribution is estimated to be low.

Inter-Sectoral Linkages in Nigeria: Evidence from Agriculture and Manufacturing Sectors

The main purpose of the research was to establish determinants of commercial bank growth. The specific objectives of the study was to; determine the effect of default rate on loans on growth of commercial banks, determine the effect of level of interest income on growth of commercial banks and to establish the effect of forex transaction volume on growth of commercial banks listed in Nairobi Securities Exchange. The study was guided by the interest rate theory, international fisher effect theory and time preference theory. Using multiple regression analysis, we found support for the proposition that loan default rate, interest rate and forex transaction had a significant effect on growth of commercial banks. Keywords: Growth of commercial bank, default rate on loans, interest income and forex transaction volume DOI : 10.7176/DCS/9-1-06

DETERMINING THE DEMAND FOR MSME CREDIT THROUGH MACROPRUDENTIAL INCENTIVE POLICIES AS AN ECONOMIC RECOVERY EFFORT

A bank is a financial institution that plays an important role in maintaining economic stability, supporting economic growth and facilitating financial activities. One of the efforts made by the banking sector is to channel credit to Micro, Small and Medium Enterprises (MSMEs) so that they can develop. This study aims to see how the influence of Non Performing Loan (NPL), Lending Interest Rate, Inflation and Macroprudential Incentive Policy on MSME credit demand in Indonesia. The research period is from 2018 to 2022. This research was conducted using secondary data obtained from the Central Bureau of Statistics, Bank Indonesia and the Financial Services Authority. The data analysis technique used is multiple linear regression. The results of this study indicate that the Non Performing Loan (NPL) variable has no significant effect on MSME loan demand in Indonesia, while the loan interest rate variable has a negative and significant effect on MSME loan demand in Indonesia and the inflation variable and macroprudential incentive policies have a significant effect on MSME loan demand in Indonesia. The conclusion is that the existence of Macroprudential Incentive Policy can increase the demand for MSME loans in Indonesia, this can have an impact on national economic growth.

Farmers Perceptions of Climate Change Issues in Tetritskaro Municipality, Georgia

Agriculture is the traditional and leading field of economy of Tetritskaro Municipality, but faces the challenge of changing climate. The study investigates male and female farmers’ perception of climate change issues in Tetritskaro, their main source of information, adaptation measures choosen and their needs. Climate change data available in Tetritskaro focused on characteristic extreme weather events coupled with face-to-face interviews from 254 farmers (male - 53%, female - 47%) was analyzed. The study revealed that men and women have more or less similar perceptions of climate change issues. For male farmers, the main source of information on climate, seasonal prediction and weather forecast is conversations with fellow farmers, and for female farmers it is indigenous knowledge of the local environment. Male and female farmers, have adapted to the changes in climate similarly applying measures such as pesticides, fertilizer and irrigation, early sowing, and earlier harvest, while the exchange of information between fellow farmers, use of various hail protection products and crop diversification techniques is more frequent among male farmers. Farmers expressed the need for low interest loans to purchase agricultural products, equipment and restore/create windbreak zones. Most of the male farmers indicate the need for introduction new technologies, while female farmers are more in need of information and training in agricultural activities. The study shows the need for development of climate change adaptation policies and interventions in Tetritskaro. Obtained results can be used not only in other agricultural regions of Georgia, but in other countries with the same problems.

Supply and demand behaviors in the Chinese emission allowances pledge credit market under different value type: An evolutionary game analysis

Chinese Emission Allowances (CEAs) pledge credit provides a new way for banks to reduce green credit risks and for low-carbon enterprises to improve the credit availability. However, insufficient supply and demand is the main dilemma of CEAs pledge credit in China. One of the reasons for this dilemma may be the neglect of the forward value of CEAs in value assessment. This research explores the decision-making behavior of the supply and demand subjects in the CEAs pledge credit market under different value types of CEAs. First, the improved B–S options pricing model with consideration of transaction costs is used in the construction of the payoff matrix to measure the option value of CEAs. The new matrix aims to place both the option value (corresponding to forward value) and the market value (corresponding to spot value) in the CEAs pledge value evaluation framework. Then, based on the new matrix, an evolutionary game model between key emission enterprises (KEEs) and commercial banks (CBs) is built to dynamically analyze the equilibrium state of supply and demand as well as the strategic interaction of participants in CEAs pledge credit market. Finally, numerical simulations demonstrate the driving factors of supply and demand for CEAs pledge credit. The research results show that compared to market value, the option value of CEAs is more conducive to stimulating the supply and demand of CEA pledge credit; and the shorter the remaining valid period of CEAs, the higher the participation enthusiasm of supply and demand parties. Furthermore, reducing low-carbon technology risks and increasing the carbon emissions trading prices at the end of pledge period can significantly improve the supply and demand of CEAs pledge credit, but the loan and deposit interest rates of CEAs pledge credit are ineffective.

Deep eutectic solvents recovery with bipolar membrane electrodialysis in biorefinery: An economic study

The complex composition and shortage of recycle technology restricted application of deep eutectic solvents (DES). Bipolar membrane electrodialysis has been proven efficient for DES recovery in biorefinery. A comprehensive economic study was essential prior to industrial recovery of DES with bipolar membrane electrodialysis (BMED). An economic study of the BMED-based recovery technique was performed by ascertaining influence of major factors on DES recovery charge with sensitivity analysis. Recovery charge of three representative types of DES was found to be changed within 0.83–1.66 $/Kg (choline chloride-ethylene glycol), 1.60–3.88 $/Kg (lactic acid-ethylene glycol), and 1.21–2.44 $/Kg (choline chloride-urea) as each factor altered in the control. Proportion of annual operating duration and loan duration displayed a negative correlation with the total recovery charge of DES. Multiple of membrane price, factor of membrane facility charge, factor of ancillary facility charge, factor of annual maintaining charge, annual reduction of recovery ratio, annual increase of recovery energy consumption, and annual interest rate of loan showed a positive relationship with the recovery charge. Total DES recovery charge increased within 6.0 %–6.4 % when heterogeneous ion-exchange membranes were employed in BMED facility instead of homogeneous ion-exchange membranes. This study verified the economic virtue of BMED-based DES recovery strategy in biorefinery.

Macroeconomic Dynamics and Profitability of Insurance Firms Listed at Nairobi Securities Exchange, Kenya

Kenya’s insurance industry has been growing steadily since 2013, with premium revenue and capital investment increasing. However, Return on Assets has declined over the past four years and reached an all-time low in 2022 compared to the previous five years which was partly attributed to the reforms introduced to cater the impact of Corona virus pandemic on and the need to close infrastructure gaps. As a result, as gross domestic product grows, firm deposits and loans rise along with interest income and loan losses. This study focused on understanding how macroeconomic dynamics affect the profitability of insurance companies listed on NSE in Kenya. It particularly looked into how changes in exchange rates, interest rates, and the overall price rise in the economy (inflation) influence these companies' profits. The study was guided by the theoretical frameworks of purchasing power parity, deflation, the balance of payment, the classical theory of interest, and the balance scorecard model. The study adopted an explanatory research design and targeted the six insurance firms listed on the NSE. The secondary data collection for this study involved the utilization of secondary data sheets. Data was obtained from the official audited financial statements of the insurance firms for the fiscal years 2016 through 2022. Data analysis involved both descriptive and inferential analysis. Inferential analysis incorporated both correlation analysis and panel regression analysis. The study found that key macroeconomic dynamics had significant impact on the profits of insurance companies listed on the NSE, explaining 57.71% of the changes in profits (R-squared = 0.5771). It discovered that while changes in the exchange rate do not significantly affect profits (β = 0.0761, p = 0.5358), higher interest rates lead to higher profits (β = 2.1647, p = 0.0233), and inflation negatively impacts profits (β = -0.3447, p = 0.0011). The study's validity is supported by strong statistical evidence (F-statistic = 21.0100, p-value = 0.0000). It suggests that insurance companies in Kenya should focus on managing risks related to economic changes to improve their financial performance. This research adds to the understanding of how macroeconomic dynamics affect the profitability of insurance firms in the context of the NSE. Keywords: Exchange rates, insurance profitability, interest rates, inflation impact, Nairobi Securities Exchange

Optimal decisions of retailer's loans from bank

AbstractThis study employs the Stackelberg game model to explore an innovative financing model where the retailer directly borrows from the bank under conditions of symmetric information. Diverging from traditional research, this study uniquely incorporates the concept of the margin rate into the decentralised decision analysis among retailer, supplier, and bank. The finding indicates that the capital of the retailer and margin rate significantly influence financing decisions within the supply chain, thereby impacting profitability for all stakeholders. Specifically, we find that the margin rate plays a crucial role in optimising retailer financing decisions, supplier pricing strategies, and bank risk management. These insights offer a fresh perspective for banks to establish appropriate margin rates and loan interest rates, effectively managing loan risks and maximising supply chain profitability.

Analysis of the Factors Influencing Housing Prices in Yunnan and Guizhou Based on Linear Regression

The real estate industry contributes significantly to the national economy. In reality, it has a significant impact on the lives of residents. It is of great significance to study the factors that affect the housing price for the development of the real estate industry. Based on the real estate data of Yunnan Province and Guizhou Province from January 2012 to December 2022, this study will analyze the factors influencing the housing prices of Yunnan Province and Guizhou Province. In addition to SPSS research, multiple regression analysis will be used in this paper. According to the analysis, housing prices in Yunnan and Guizhou provinces will rise with the decline of long-term loan interest rates. Besides, the residential consumer price index negatively affects housing prices in Yunnan and Guizhou provinces. Moreover, an increase in the amount of real estate investment will lead to an increase in housing prices. On this basis, the completed real estate area has a negative relationship with house prices.

Evaluation of multimodal data-driven financial risk prediction methods for corporate green credit

With the rapid economic development and increasingly serious environmental problems, many regions have launched green credit policies. Green credit can reduce the loan interest rate of the environmental protection industry and lower the financing threshold. Traditional risk prediction methods cannot comprehensively evaluate the green credit risk of the enterprise based on the degree of green environmental protection and the industry environment in which the enterprise is located, resulting in the inconsistency between the credit financial risk prediction and the actual results, which increases the bank credit risk. In order to strengthen the management level of green credit and reduce the probability of non-performing loans, a scientific risk assessment method was constructed by using a combination of automatic encoding network and bidirectional long short-term memory neural network model to predict the financial risks of green credit, driven by multi-modal data. Through the study of multimodal data, this paper took green credit financial risk as the research object, aggregated the information of various enterprises to improve the bank’s capital utilization rate, and also promoted enterprises to take the initiative to transform into the direction of green environmental protection. Finally, the experiment proved that multimodal data fusion model was more superior than random forest in risk prediction, reducing the bank’s non-performing loan rate by 3.1% and improving the bank’s risk control level.

Transparent reporting and equity in mortgage lending: A comprehensive review

This comprehensive review delves into the critical intersection of transparent reporting and equity within the realm of mortgage lending. With the housing market serving as a cornerstone of economic stability and social mobility, the equitable distribution of mortgage loans is paramount for fostering inclusive growth and mitigating systemic disparities. The paper scrutinizes existing literature, regulatory frameworks, and industry practices to assess the extent to which transparency and equity are upheld in mortgage lending processes. By examining key metrics such as loan approval rates, interest rates, and access to credit, this review sheds light on persistent inequities and identifies potential avenues for improvement. Additionally, it explores the role of technology, data analytics, and policy interventions in promoting transparency and equity across various stages of the lending lifecycle. Ultimately, this review underscores the urgent need for concerted efforts from policymakers, financial institutions, and stakeholders to enhance transparency and promote equity in mortgage lending practices. The pursuit of transparent reporting and equity in mortgage lending stands as a cornerstone of fair and accessible housing finance systems globally. This comprehensive review synthesizes current research, regulatory frameworks, and industry practices to illuminate the intricate dynamics shaping mortgage lending equity and transparency. Through a nuanced analysis of factors such as credit scoring mechanisms, discriminatory practices, and regulatory oversight, the review identifies persistent challenges and emerging trends within the mortgage lending landscape. Furthermore, it investigates the potential impact of socioeconomic factors, demographic shifts, and technological advancements on the equitable distribution of mortgage credit. By elucidating the linkages between transparency, equity, and financial stability, this review offers valuable insights for policymakers, practitioners, and researchers seeking to foster more inclusive and resilient mortgage markets. In conclusion, the review calls for concerted action and collaborative initiatives aimed at promoting transparency and equity as foundational principles in mortgage lending practices.