Loan Supply Research Articles

Theoretical and legal aspects of introducing new mechanisms for providing housing to military personnel and their families: special savings program, leasing, mortgage

One of the key elements of national security and defense of the state in the state is the military personnel. Social and legal protection, material support, and favorable conditions for the realization of their constitutional rights are priority tasks for the state. Providing housing for military personnel is one of the key aspects of social protection. The state of housing provision for military personnel not only reflects society’s attitude toward its defenders but also holds strategic importance for ensuring combat readiness and the moral-psychological climate within the Armed Forces of Ukraine, the National Guard of Ukraine, and other defense forces. At the legislative and organizational levels, the system of housing provision for military personnel in Ukraine remains ineffective and contains significant corruption risks. The sources of current legislation regulating the right of military personnel in Ukraine remains ineffective and contains significant corruption risks. The sources of corruption risks. The sources of current legislation regulating the right of military personnel to housing require radical changes. Soviet legislation forms the current housing laws, is outdated, and does not correspond to the present political or socio-economic conditions requiring radical changes. A comprehensive analysis of various periods in the development of domestic housing legislation provides an opportunity to identify the circumstances and reasons that will help eliminate the shortcomings in the legal regulation of housing relations and find ways to improve modern housing relations and find ways to improve modern housing legislation by introducing new mechanisms for housing legislation by introducing new mechanisms for housing provisions for housing provision for military personnel and their families. In this regard, it is important to conduct research on the circumstances and factors that influence the legal aspects of implementing new algorithms for housing provision for military personnel. Such an analysis will reveal the problems and shortcomings in the implementation of new housing provision mechanisms for a significant category of individuals and identify ways for their further development. The issue of implementing the «eOselya» affordable mortgage program for military personnel is considered. An analysis of mortgage housing loans has been conducted, focusing on the provision of long-term bank loans for the purchase or construction of residential real estate, where the collateral is the property itself. The requirements for candidates to obtain a preferential mortgage loan have been studied. Problematik issues arising in the process of mortgage implementation have been explored.

Barriers and recommendations for the implementation of robot-assisted minimally invasive surgery in Africa.

Robotic surgery offers several advantages to the African setting, including shorter hospital stays, faster return to work, and increased overall productivity. However, its adoption has been limited by several factors. This review aims to present the barriers to implementation, and recommendations for integrating robotic surgery into the African healthcare system. Use of robotic surgery in Africa is primarily limited to Egypt and South Africa. Barriers faced by other countries were categorized into economic, infrastructural, systemic, and training-related. They include limited healthcare budgets, initial costs of robotic systems, patients' inability to afford robotic procedures, out-of-pocket healthcare financing, inadequate power supply, limited internet connectivity, poor healthcare leadership, and insufficient surgeon training facilities. Public-private partnerships, provision of loans and subsidies, introduction of cheaper robotic systems, and local manufacturing of robotic equipment will serve as cost-effective innovations. It is also important to improve healthcare financing and strengthen healthcare leadership across Africa. To address the lack of surgeon training facilities, remote assistance for surgeon training can be used to create a mentor-mentee relationship between robotic surgeons in any part of the world and surgical trainees in Africa to facilitate knowledge transfer. Prior investment in electricity and network infrastructure is however necessary. Establishment of fellowships to provide early exposure to robotic surgery should also be explored. AI-integrated robotic surgery can also enhance precision and safety, and provide tailored training tools for surgeons. Similar barriers to the adoption of surgical robotics are faced across Africa. By implementing the provided recommendations, robotic surgery can still be widely adopted in African settings, despite the delay.

Bank Lending and Policy Interactions—A Comprehensive Assessment for the G20 Countries

ABSTRACTThis study examines the joint impact from supervisory requirements, monetary policies and rescue packages on the supply of bank loans. Evidence is obtained from conceptual considerations and the empirical investigation of G20 banks over the period 1995–2021. To prepare the analysis of interactions, we first address modelling concepts and consistently identify the effects on bank lending that come from each of the regulatory approaches in isolation. Second, we empirically assess the effects that result from the parallel application of policy actions. Short‐term liquidity ratios in combination with further variables mostly associate with positive interaction effects. In contrast, the joint assessment of long‐term liquidity ratios as well as leverage ratios with other policy actions usually provides negative effects. Overall, the results suggest that unconventional monetary policy and rescue actions can stimulate bank lending only after the institutions have restored their own stability. Interactions of policy actions matter, and both regulatory authorities and bank management should consider them.

The sphere of lending according to the legislation of Ukraine and the EU regarding the protection of consumer rights

The article examines the peculiarities of the protection of consumer rights in the field of lending under the legislation of Ukraine and the EU from the point of view of bringing national legislation into line with the requirements of EU law in this area. It was determined that the EU is actively working on improving legal mechanisms for the protection of consumer rights in the field of consumer credit through the adoption of new acts. The article analyzes individual changes in this area, as well as outlines the reasons for such changes. In modern banking practice, a fairly wide list of types of consumer loans is used, the main classification features of which are: types of creditors; types of borrowers; repayment methods; terms of use; degree of credit coverage of the cost of goods, works, and services; software; interest payment methods; lending facilities, loan amounts, loan currency, etc. But the presence of a large number of banking products does not exclude the possibility and does not reduce the need for their further development and expansion, which should contribute to the development of consumer lending in general. The level of socio-economic development of the country directly affects the development of consumer lending, at the same time, the dynamics of such macro-indicators as gross domestic product, income and expenditure of the population, volumes of services provided, retail turnover, average monthly nominal wages, etc. have the greatest influence. Consumer lending has a higher efficiency compared to corporate lending, and this is explained not only by its high profitability, but also by the presence of additional income that accompanies the provision of consumer loans. At the same time, the effectiveness of consumer lending depends on the terms of granting, and accordingly, short-term consumer loans are more effective. Therefore, the performance of banks in general as part of the banking system of Ukraine depends on how the mechanism of consumer lending in banking institutions is formed, how regulation and regulation of consumer lending is carried out. Positively evaluating the adoption of the relevant Law in 2016, the author notes the need for its revision and improvement, taking into account Ukraine’s European integration progress, as well as the importance of preserving the economic well-being of the population of our state in the face of a full-scale invasion. According to the author, the corresponding changes should concern the requirements for information about consumer credit, the specifics of its conclusion from the point of view of accompanying financial instruments, as well as the simplification and improvement of legal mechanisms for early termination of consumer credit contracts.

Multi-Borrowing Practices and Loan Repayment of Micro and Small Enterprises in Trade Sector in Meru County, Kenya

In Kenya, the increase in multi-borrowing and its effects on loan repayment is a growing concern for microfinance institutions. The general purpose of this research was to establish the effect of multi-borrowing on loan repayment among MSEs in Meru County. Specifically, the study aimed to determine how the number of loans borrowed, interest payable, and the financial literacy of borrowers influenced loan repayment within Meru County Microfinance. The research was anchored on information asymmetry, prospect theory, moral hazard, and adverse selection theories. The study targeted 6,000 MSE owners who were members of Meru County Microfinance, from which a sample of 200 borrowers was selected. A descriptive research design was employed to assess how multiple borrowings affected loan repayment. Cluster and random sampling methods were used to identify respondents across the seven branches of Meru County Microfinance. Primary data was collected using questionnaires, and analyzed by use of descriptive, correlational, and regression analysis techniques. Inferential analysis was conducted at a 0.05 significance threshold, utilizing the Statistical Package for Social Sciences (SPSS) version 28 for data analysis. Ethical standards were strictly observed throughout the study. The study revealed that the number of loans borrowed had a significant impact on loan repayment among MSEs in Meru County. Effective management of borrowing was crucial for better repayment outcomes. Interest payable was identified as a critical factor affecting loan repayment; enterprises with well-managed credit risk practices, including the adjustment of interest rates and repayment schedules, exhibited better repayment performance. Furthermore, the level of financial literacy positively influenced loan repayment, with higher financial literacy levels leading to improved loan management and repayment behaviors. The study concluded that the number of loans borrowed significantly affected loan repayment, although its impact was less direct compared to other factors. Interest payable had the most substantial effect on loan repayment, with effective credit risk management correlating strongly with better repayment outcomes. Additionally, a higher level of financial literacy was found to significantly enhance loan repayment. Based on the findings, it is recommended that micro and small enterprises regularly review and manage their borrowing policies to improve loan repayment. Financial institutions should implement clear policies on irrecoverable loan provisions and adopt robust credit management practices to ensure better loan repayment. Moreover, enhancing financial literacy among borrowers is crucial for improving loan repayment, and thus, targeted financial education programs should be developed. Policymakers should also evaluate and update regulatory frameworks to support effective loan management and repayment practices within microfinance institutions.

Financing white rule: How Luxembourg became a banker for the Belgian Congo and Apartheid South Africa

Abstract In this article, I offer a historical analysis of how bankers in Luxembourg came to be important service providers to borrowers in the Belgian Congo and Apartheid South Africa. I demonstrate how a series of unique political and cultural factors linking Luxembourg and these two (neo)colonial regimes account for the financial activities that developed between the three jurisdictions. As such, I show that officials in the Belgian Congo and Apartheid South Africa were able to count on their Luxembourg-based bankers for a variety of finance-related services, including the provision of Eurocurrency loans and the formation of offshore companies. In doing so, the article contributes to a body of literature in the social sciences of finance that has grown significantly in recent years: on the imperial and neocolonial basis of the contemporary global financial system.

A VAR Framework of Exchange Rates, Interest Rates, and Inflation Through COVID-19 in Turkey: Empirical Evidence From Linear Cointegration and Causality Analysis

In this study, we investigate the impact of exchange rates and interest rates on inflation in Turkey using monthly data from January 2004 to July 2020 obtained from the Turkish Statistical Institute. Our vector autoregressive (VAR) model showed an evidence of stochastic behaviour among the series. The autoregressive distributed lag (ARDL) results showed a short-run and long-run covariate between exchange rates, interest rates and inflation. Specifically, the findings showed a short-run and long-run relationship between inflation, producer price index (PPI), and Turkish interbank offer rates (TIBOR). However, there was no connection between inflation and dollar exchange rates (DSR) and commercial banks’ interest rates (CBIR). The VAR Granger causality results revealed the variables to be exogenous except DSR, which displayed endogenous to other variables. Nevertheless, the results revealed unidirectional causality from the producer price index (PPI) to DSR and unidirectional causation from TIBOR to CBIR. It means an increase in production costs through raw materials importation led to devaluation of the Turkish lira. Similarly, TIBOR rates drive CBIR high, making domestic lending more expensive, which will inhibit loan provisions to the private sectors, which will result in an economic contraction and eventually high inflation. Our unit roots breakpoint results pointed to breaks in the dataset were between 2016-2019, reflecting the effects of the Fetullah Terrorist Organization (FETO) failed coup, the 2018 U.S. embargo, and an assumed fiscal dominance as the major and direct causes of economic instability and inflation. However, Covid-19 may have acted as a contributing factor since then. Thus, we recommend that the monetary authorities articulate policy to avoid the assumed fiscal dominance.

Forecasting Bank Default Risk with Interpretable Machine Learning: The Study of Chinese Banks

ABSTRACT Bank occupies an important position in the financial system. The stable operation of the banking industry is not only one of the important factors in achieving sustainable economic growth but also related to the stability of the entire financial system. This research collects data from 507 banks in China from 2000 to 2021, uses the non-performing loan ratio as the measurement indicator of bank risk, and selects indicators from five levels (macroeconomic environment, industry economic environment, economic policy uncertainty, financial openness and bank financial status) On this basis, we use interpretable machine learning models to predict the bank’s default risk, analyze and compare the interpretable machine learning model and the post-hoc explainable methods. The results indicate that Provision Coverage (PC), Loan Provision Coverage (LPC), Liquidity Ratio (LR), and KOF Financial Globalization Index (KOFFiGI) have strong predictive capability for bank default risk. Our research can provide a reference for banks, government and financial regulatory authorities to construct the prediction model and indicator monitoring platform for bank default risk.

Macroprudential policy and systemic risk in G20 nations

Using a panel of 496 banks from the G20 nations, the study assesses the role of macroprudential policies in reducing systemic risk. The study further assesses the utility of these policies in conjunction with monetary policy instruments and bank and country-specific characteristics and finds the significant impact of macroprudential policies in curbing systemic risk and promoting economic stability. The study finds this relationship to hold regardless of economic conditions like inflationary pressure and financial distress. The result highlights that easing macroprudential policies during financial distress can help banks cope with systemic losses. We split the macroprudential policies into policies targeting the demand and supply of loans and find complementarity among the policies to reduce systemic risk. Our results demonstrate the heterogenous effect of macroprudential policies in limiting systemic risk, with the effect varying with bank size, leverage, liquidity, and concentration of loans. Finally, we find a moderating role of these policies in limiting the impact of uncertainties on systemic risk.

Role of Microfinance Institutions in Growth of Micro and Small Enterprises in Kebridehar City, Ethiopia: A Case of Rays Microfinance Institution

This study investigated the influence of microfinance institutions (MFIs) on the development of micro and small enterprises (MSEs) in Kebridehar City Administration. The objective was to assess the role of MFIs in the growth of MSEs, specifically focusing on aspects such as loan provision, financial skills training, role modelling and savings mobilisation. The researchers collected data from 170 MSEs that utilised the services of MFIs, using both secondary and primary sources. Descriptive and inferential statistics were employed to analyse the data, revealing that loans, financial skills training, savings mobilisation and role modelling all had a significant impact on the growth of MSEs in the city. This study enhances our understanding of how these factors contribute to the development of MSEs.

MAIN DIRECTIONS OF BANK LOANS IN CREDIT MARKET

Financial analysis in credit market and commercial banks, which have been an important factor of economy and human life and activity currently, study of financial-economic results of activity of a bank, determination of main directions of development of the bank and main factors of financial business processes, determination of purpose-oriented special knowledge and growth rates, etc. Different economic sources, internet materials have been applied as a theoretical and methodological basis. As systematization of loans in bank lending system is a theme of the research, methods such as analysis, induction and deduction have been used. Main scientific innovation that has been put forward: In this field, one of the most important issues is, certainly, organization of organization system of information issues, which have the most significant role in determining and implementation of successful demand and supply of bank loans in credit market and main directions of bank loans in credit market. Results of the research: Finding perspective improvement ways of commercial banks Development of credit system, directly improved by banks, significantly positively effects progress of country economy Information tools and technology play the most important role in improving credit market now.

Impact of Shari’ah and Corporate Governance on Islamic Banks Performance: Evidence from Pakistan

Purpose: The objective of this paper is to examine the effect of Shari’ah and corporate governance on the performance of the Islamic banks in Pakistan. Design/methodology/approach: This research uses a hand-gathered data on Shari’ah and corporate governance of the major Islamic banks in Pakistan for the period of 2018 to 2023. The selection of index uses the Islamic Corporate Governance (ICG) where various necessary attributes of Shari’ah board (SB) is considered. By way of data analysis, basic measures such as mean, mode, and standard deviation used, as well as correlation coefficient and panel REM regression. Findings: The conclusion of the study establishes that Shari’ah governance factors especially the functioning of Shari’ah boards have bigger impact toward financial performance of Islamic banks than corporate governance factors. Further, capital adequacy has a positive effect (Equity to Total Assets, EQTA) on the performance but loan provision has a negative effect on the performance (Net Loans to Total Assets, NLTA). Preposterously, Shari’ah Board Education (SBE) takes negative signs, stating that excessive education on the Shari’ah board may cause such board to make extra conservative decisions no longer brought about by way of profitability but through compliance. Research limitations/implications: Strong, autonomous Shari’ah boards positioned to focus solely on the supervisory contexts can improve stakeholder confidence and performance of Islamic banks. The results presented in this study can be beneficial for Pakistan’s policymakers and those authorities that regulate IFIs. Originality/value: This research enhances the stock of knowledge on Shari’ah governance, corporate governance and their effects on financial performance in the context of Pakistan’s Islamic banking sector.

Women’s coping and adaptation strategies to climate change: a case of the Dodoma Region

ABSTRACT Climate change is escalating in intensity, frequency, and complexity. Its related threats have profound implications for humanity, particularly women. Measures to cope with and adapt to it have been researched in general and does not focus on the role of women in the specific community, who bear the brunt of the strife associated with climate change. It is from this view that this research assesses the effects of women’s coping and adaptation mechanisms to climate change. Data were collected through household surveys, key informant interviews, observation, and documentary reviews. The collected data were descriptively analysed with the aid of SPSS version 20 and Microsoft Excel. Results indicate that communities understood climate change in terms of variability in rainfall patterns and amounts, water availability, increased incidences of drought, and decreased agricultural yields. Such events reduced agricultural productivit and led to the reoccurrence of food insecurity. Women grew drought-tolerant and early-maturing crop varieties, walking long distances to fetch water, crushing pebbles, and engaging in small vending businesses, which had some effects, including falling into family conflicts, diseases, and food insecurity. The study suggested that there is a need for upscaling awareness and capacity building on good agricultural practices, the provision of loans to small vending businesses, and the provision of inputs that assist women to cope with climatic changes smoothly.

Quantitative Easing Impact on Market Liquidity and Inflation

Quantitative easing (QE), mainly including large-scale purchasing, affects the market and economy by liquidity channel. This channel includes two aspects: loan supply and liquidity increases caused by large-scale purchasing. The influence of QE on liquidity is not clear enough. Also, whether such a liquidity creation will lead to inflation needs to be emphasized. This article provides an in-depth analysis of the impact of quantitative easing (QE) on liquidity creation and explores the potential relationship between QE and inflation. The article, based on investigating previous research, gives an overview of the process of quantitative easing’s impact on liquidity creation through large-scale purchasing and lending channels. Meanwhile, the article discusses the possibility of quantitative easing leading to inflation. In conclusion, large-scale purchasing creates market liquidity by increasing loan supply and affecting the securities market. Furthermore, the investment shows that quantitative easing would not generate inflation. The article provides an overview of liquidity creation caused by QE and the potential possible relation between QE and inflation and provides a reference to the future.

EFFECTS OF CREDIT REFERENCE BUREAU PROCEDURES ON PERFORMANCE OF LOAN PORTFOLIO: A CASE OF SELECTED COMMERCIAL BANKS IN TANZANIA

This study investigates the impact of credit reference bureau (CRB) procedures on the performance of loan portfolios at selected commercial banks in Tanzania. A cross-sectional research design was adopted, with data collected through questionnaires and interviews involving 95 respondents from selected commercial banks. The findings show that the procedure to accessing loans had a positive and significant relationship with loan portfolio performance at these banks (β = 0.835, p = 0.000), as did loan approval procedures (β = 0.789, p = 0.001) and quality control procedures (β = 0.768; p = 0.002). All were significant at 5% level. The study concludes that using credit reference bureau services allows banks and other credit providers to assess potential clients, track their financial performance, and manage any accumulated debts. The study recommends that the government of Tanzania work closely with listed commercial banks and other financial institutions to ensure compliance with legal requirements specifically policies and procedures that assist in screening and monitoring clients from the initial stage of lending by using credit reference bureau procedures to improve decisions on loan provision.

Attracting Private Investment to Renewable Energy Projects in India

Attracting private investments to renewable energy projects is a topic of significant debate within academic circles. This study investigates the relationship between green fiscal policy and green monetary policy concerning investments in renewable energy in India, spanning from 1990 to 2021, employing the ARDL (Autoregressive Distributed Lag) technique. The findings reveal that green taxes can positively or negatively impact investments in renewable energy sources. Furthermore, green monetary policy, mainly through the provision of green loans, accelerates investment inflows into renewable energy sources in the short and long terms. Challenges hindering private investment in India's renewable energy sector include compounded risk and inflation. Nonetheless, financial development and literacy rates are crucial in expanding investment in renewable energy sources. Based on these findings, practical policy recommendations for India entail enhancing sustainable literacy through green education, promoting social inclusivity, and establishing effective monetary and fiscal policies.

Ad hoc bank taxation and credit supply

AbstractThis paper studies the introduction of new temporary taxation on banks and its effects on banks' lending decisions. Focusing on a unique policy experiment in Slovenia in 2011, where the government imposed a 0.1% tax on banks' total assets, I find that the introduction of the tax resulted in a lower credit supply of loans to corporates. In particular, for each percentage point increase in the share of tax in the capital, banks charge, on average, 8 basis points higher lending rates and decrease their lending amount by 0.5%. The findings of this research carry strong policy implications for countries contemplating or having already implemented windfall or other temporary taxes on banks. The introduction of the tax might lead to a reduction in lending beyond what would be warranted from the standpoint of monetary or other policies.

Youth Migration and its Resultant Effect on Small-Scale Fish Farming in Southwest Nigeria

The study aimed at assessing the effects of rural youths’ migration pattern on small-scale fish farming in southwest Nigeria. Primary data were obtained from 440 fish farmers with the aid of a well-structured questionnaire, using multi-stage random sampling technique. Data collected were analyzed using descriptive statistics and likert scale rating techniques. The results showed that majority of the fishers were married males with mean age, household size and fishing experience of 44 years, 6 persons and 14 years respectively. It was further revealed that scarce employment opportunities (89.1%), flood/drought (85.7%), poverty (79.8%) and insurgency/displacement (75.5%) were the major push factors triggering rural youth’s migration in the study area while attractive wages/high income (98.0%), diverse employment opportunities (90.2%), alternative source of income during off season (86.1%) and availability of improved technologies (70.7%) were the major pull triggering youths’ migration in the study area. Thus, provision of loan to fishers at flexible interest rate, availability of improved fishing equipment, establishment of vocational training centres, integrating rural youth into empowerment programmes and provision of improved fishing methods to attract youth were the main strategies that could be used to checkmate rural youth migration in the study area. It was therefore recommended that Bank of Agriculture should be encourage to give out minimal loan interest rate to fishers at flexible repayment plans, empowerment/skills acquisition/entrepreneurship programmes should be established.

Factors influencing women farmers’ participation in agricultural cooperatives in Ondo-State, Nigeria

Cooperative societies provide channels for sharing of input where women farmers can pool their limited resources together to maximize agricultural output and food security in rural areas. This study, therefore, analyzed factors influencing women farmers participation in agricultural cooperatives in Ondo State, Nigeria. The specific objectives of the research were to describe socio-economic characteristics of women farmer’s participation in agricultural cooperative societies, determine the level of participation of women farmers in agricultural cooperatives and examine factors that motivate participation. Data were analyzed using descriptive statistics, Likert type scale, and Pearson Product Moment Correlation analysis. The results revealed that women farmers in the study area were average aged (42.9 years) and mostly possessed tertiary education (38.3%), mean annual income (₦777,846) with farm size (0.8 hectares). The level of participation in agricultural cooperative is high (60.4%). Accessibility to loan (M. S= 3.50), getting information (M. S= 3.42) and input facility (M. S= 3.40) were top most factors that influenced participation in cooperatives among the women. At P< 0.05, Age, marital status and income realized per annum were positively significant to the level of participation in cooperatives. The study recommends the timely provision of loan to enable women farmers expand the scope of their farming activities, increased access to training programs for women farmer leaders in cooperatives as well as extension education should also be intensified.

Agricultural Land Pawning as a Social Institution in Wono Agung Village Tulang Bawang District

Agricultural land pawning, as outlined in Law No. 56/1960 on the Determination of Agricultural Land Area, is characterized as a collateral transaction where agricultural land is mortgaged or pledged. Social institutions can play a key role in this process, acting as facilitators for loan provisions against land collateral and helping to evaluate and understand the motivations behind agricultural land pawning. This research adopts an empirical normative approach to assess the practice. The findings reveal that agricultural land pawning in Wono Agung Village is conducted in two principal manners: verbally and in writing, aligning with the stipulations of Article 7 of Law Number 5 of 1960. The residents of Wono Agung Village typically engage in pawning their agricultural land for several reasons, including the need for capital, education expenses, expansion of agricultural land, general economic difficulties, and other urgent necessities. Challenges in the implementation of agricultural land pawning arise from issues involving both the pawn recipients and the landowners. Despite these obstacles, agricultural land pawning functions effectively as a social institution, offering a viable solution to the economic struggles faced by the villagers. These social institutions play a pivotal role in enhancing the welfare and economic conditions of the agricultural community in Wono Agung Village.