Bank Loans Research Articles

The First Half of 2024 Results for the Consolidated Budgets of the Subjects of the Russian Federation

In the first half of 2024, the dynamics of the total amount of regional budgets revenues slightly lagged behind the inflation rate. At the same time, the growth of own revenues of the consolidated budgets of the Russian Federation regions was largely determined by the dynamics of industrial production in most regions and the growth of average accrued wages. The dynamics of corporate income tax and personal income tax receipts have different directions – the receipts of the first decreased, and the second grew significantly. If, in total, for all subjects of the Russian Federation, the increase of personal income tax revenue offset the drop of corporate income tax, then for some regions the situation was different. At the same time, corporate income tax revenues of the federal budget were growing, mainly due to tax calculated on income from securities (dividends, interest). The previously formed tendency of the intergovernmental grants from the federal budget reduction continued. The share of targetеd grants in the structure of transfers has increased. The growth of expenditures of the consolidated budgets of the subjects of the Russian Federation practically follows the dynamics of revenue – slightly lags behind the rate of inflation. If there is a reduction in the volume of state sub-federal debt of all subjects of the Russian Federation, then in 21 regions the volume of debt has increased. The growth of the sub-federal debt occurred both due to an increase in the volume of budget loans and at the expense of expensive bank loans.

Does industrial agglomeration curb corporate carbon emissions? A perspective of financial constraints

This paper investigates the impact of industrial agglomeration on corporate carbon emissions in China. We measure the extent of industrial agglomeration utilizing distance-based continuous spatial measurement, differentiating between the quantity and scale of agglomeration. Using a panel of 7895 firm-year observations from 2007 to 2019, our findings indicate that regional industrial agglomeration contributes to a reduction in carbon emissions for firms located within those regions. Specifically, this reduction is primarily achieved through the alleviation of corporate financial constraints. We demonstrate that industrial agglomeration facilitates firms in accessing informal finance (e.g., trade credit) more effectively than formal finance (e.g., bank loans). Additionally, we find that the effect of industrial agglomeration on reducing carbon emissions is more pronounced for firms with higher environmental responsibility, while it is diminished in regions with greater marketization. The carbon reduction effect is also more significant for heavily polluting firms and those situated in areas with stricter environmental regulations. Furthermore, our study reveals that the implementation of green credit policies may weaken the carbon reduction effect of agglomeration by limiting access to financial resources. The robustness of our main results is confirmed through the Bartik-IV test and other robustness checks. Taken together, our findings suggest that industrial agglomeration can effectively lower corporate carbon emissions by easing financial constraints, offering valuable insights into strategies for enhancing corporate environmental performance.

The power of the many: how retail investor attention reshapes corporate trade credit and bank loans

Our study on China-listed firms from 2011 to 2022 reveals that heightened retail investor attention significantly decreases corporate trade credit and boosts bank loan accessibility. This effect is consistent across different robust checks, such as propensity score matching and industry/regional shock controls. We find that this attention enhances information transparency, influencing both trade credit and bank loans. Notably, the impact is more pronounced in the absence of professional information intermediaries. This research deepens the understanding of retail investor attention's economic impact, shedding light on the substitutive relationship between trade credit and bank loans.

STRATEGI DIVERSIFIKASI PORTOFOLIO: ANALISIS DAMPAK RISIKO DAN KEUNTUNGAN PADA BANK KONVENSIONAL DAN SYARIAH MILIK NEGARA DI INDONESIA

This research examines the relationship between credit portfolio diversification and the risk and return of state-owned banks (Bank BUMN) from 2019 to 2023. Using multiple linear regression analysis, it evaluates the impact of the Herfindahl Hirschman Index (HHI) on credit or financing risk (NPL and NPF) and bank returns (ROA, ROE) among state-owned banks listed on the Indonesia Stock Exchange. Control variables include bank size, loan or financing to deposit ratio (LDR and FDR), and equity to total asset ratio (ETA). The results show that credit portfolio diversification reduces credit risk in BUMN banks, suggesting that spreading credit exposures across sectors can mitigate risk. However, diversification does not significantly affect bank returns (ROA, ROE). Control variables such as bank size, LDR and FDR, and ETA show no significant impact on credit risk, ROA, or ROE. This study provides empirical evidence on the effectiveness of financing portfolio diversification in managing credit risk within state-owned banks, considering Islamic banking principles. While diversification can mitigate credit risk, its impact on profitability requires careful consideration. BUMN banks should implement robust risk assessment frameworks and strategic oversight to maximize diversification benefits while maintaining financial stability and adhering to ethical and Sharia-compliant financial practices.

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.

The imprint effect of initial institutional environments and bank financing in family businesses

The initial imprint embedded in family business origin provides us with favorable support for identifying how past institutional environments and then current governance characteristics influence financing. This study investigates the influence of family business origin on loan borrowing, and finds that restructured family firms (RFFs), which are formed through the restructuring of collective-ownership enterprises, are likely to obtain more loans compared to entrepreneurial counterparts (EFFs). The effect varies with local marketization, family control rights, and intergenerational succession. Our findings suggest that restructured family firms have a sounder modern enterprise system, less information asymmetry, and consequently pose less credit risk, which allows them to access loans more easily. In addition, institutional differences stemming from the origin of the firms affect the composition and cost of bank financing. RFFs outperform EFFs in terms of the size of non-local bank loans and the cost of loans. Overall, this study shows that the institutional environment of family firms at the founding stage has a long-term impact on future financing.

Abnormal Temperatures, Climate Risk Disclosures and Bank Loan Pricing: International Evidence

Abnormal Temperatures, Climate Risk Disclosures and Bank Loan Pricing: International Evidence

Effects of Commercial Bank Loans on SME Growth: The Case of Morogoro Municipality, Tanzania

Effects of Commercial Bank Loans on SME Growth: The Case of Morogoro Municipality, Tanzania

Doing good in times of need: Green finance policy and strategic corporate social responsibility

This study investigates the effect of a green finance policy on the corporate social responsibility (CSR) activities of firms in heavily polluting industries. Based on the 2017 policy of the People's Bank of China (PBC), which incorporates green finance into its macroprudential assessment system, we employ the difference-in-differences method to show that firms in heavily polluting industries have significantly improved their CSR performance after the implementation of the PBC's green finance policy. In response to the negative effect of the PBC's policy on their financial position, affected firms strategically engage in CSR activities in the hope that appearing socially responsible will help them recover from their adverse position. Furthermore, firms in heavily polluting industries that enhance their CSR performance after the PBC's policy have benefited from reduced bank credit transaction costs and have obtained more bank loans. The improvement in CSR performance is mainly concentrated in firms that are non-state-owned, small in size, highly dependent on external financing, and receiving more media attention. Overall, this study reveals a social consequence of the PBC's green finance policy on the CSR performance.

“A Study On Loans And Advances At DavangereHarihara Urban Sahakara Bank”

One important part of the Davangere-Harihara Urban Sahakara Bank's business is meeting the financial requirements of its clients via loan and advance services. The bank's loan portfolio is characterized by a high percentage of customers being assessed to pay tax, indicating a stable customer base. The majority of customers avail loans within a short period, suggesting a demand for quick access to credit. The bank's interest rates are deemed satisfactory by a significant majority of customers, and the loan approval process is generally well-received. However, there is room for improvement in providing clear repayment information and reducing paperwork. Customer satisfaction with the bank's services is high, with a significant percentage of customers willing to take another loan from the bank. This loyalty can be leveraged by offering incentives and loyalty programs. To enhance its loan and advance services, the bank should focus on reducing processing time, improving the loan approval process, and providing clear repayment information. Additionally, offering flexible repayment options and competitive interest rates can help attract and retain customers

Distributionally robust optimization of a newsvendor model under capital constraint and risk aversion

This paper proposes a capital-constrained newsvendor model with risk aversion under a partially known demand distribution with only knowledge of its mean and variance. We adopt the robust conditional value-at-risk (RCVaR) to characterize the vendor’s risk aversion. Firstly, we obtain the closed-form RCVaR optimal order quantity that depends on the demand volatility level: When demand volatility is low, the vendor has four financing-ordering strategies contingent upon different capital levels. When demand volatility is medium, the vendor does not seek bank loans and is left with two ordering strategies. When demand volatility is high, the vendor does not bother placing an order at all. Then, we investigate the impact of capital constraint, risk aversion and demand volatility on the RCVaR optimal order quantity. Finally, we demonstrate the robustness of the RCVaR optimal ordering policy by numerical experiments based on both randomly generated and real-world data.

Analysis on the Policy of Restricting Bank Loans to Suppress Real Estate Investment

Analysis on the Policy of Restricting Bank Loans to Suppress Real Estate Investment

Banking Preferences and Perceptions Among College Students: A Study on Influential Factors and Service Satisfaction

This study investigates customer perceptions of their choice of bank among college students, focusing on factors influencing their banking decisions. Through a survey of 150 respondents, the study reveals that most students prefer commercial banks, valuing service quality and security. The majority have not utilized bank loans or relief measures during the COVID-19 pandemic. Dissatisfaction with service or limited options are common reasons for considering a bank switch. While respondents generally rate their banks positively, there are varied opinions on employee behavior, individual attention, and operating hours. The findings indicate that while overall perceptions are favorable, there is room for improvement in specific service aspects. This research provides insights into student banking preferences and highlights areas for banks to enhance their service offerings.

Carbon risk and corporate maturity mismatch

This study investigates the impact of carbon risk on the corporate maturity mismatch of investment and debt. We find that carbon risk exacerbates maturity mismatches, primarily by increasing debt default risk, which in turn reduces both the availability and maturity of bank loans. At the same time, carbon risk drives firms to undertake riskier investments, compelling them to rely more heavily on short-term financing to support long-term projects. Heterogeneity analysis reveals that the impact of carbon risk on maturity mismatch is more pronounced in firms that are smaller in size, exhibit weaker financial performance, have higher leverage, hold less cash, or engage in less green innovation. Moreover, under heightened carbon risk, increased maturity mismatch appears to reduce agency costs and enhance firm performance, thereby improving resource allocation. This finding supports the monitoring role of maturity mismatch. Our results remain robust across multiple sensitivity tests

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.

Macro-economics and firm-specific factors impacting the non-performing loans of vietnamese commercial banks in the context of COVID-19

The COVID-19 pandemic has created unprecedented economic disruptions worldwide, with the banking sector being one of the most affected industries. This paper aims to explore the impact of various factors on the nonperforming loans (NPLs) of Vietnamese commercial banks during the COVID-19 pandemic by employing a Bayesian hierarchical regression approach. The analysis highlights that the pandemic has led to a significant and positive increase in the NPLs ratio of Vietnamese banks, indicating that the financial health of these institutions has been adversely affected by the crisis. Moreover, the study uncovers that the impact of COVID-19 on NPLs is not uniform across all banks. Specifically, state-owned banks have experienced a more pronounced increase in NPLs compared to their private counterparts. This disparity suggests that state-owned banks may be more vulnerable to economic shocks due to their broader exposure to sectors and enterprises heavily impacted by the pandemic. The findings of this research offer critical insights into the dynamics of the banking sector in Vietnam during a global health crisis and emphasize the need for targeted policy interventions. The results also underscore the importance of understanding the differential impacts of such crises on various types of financial institutions. By identifying the factors that contribute to the increase in NPLs, this study provides valuable information that can inform future strategies aimed at enhancing the resilience of the banking sector against similar economic disruptions. Furthermore, the findings highlight the effectiveness of the policies implemented during the pandemic to support the banking sector, suggesting areas for improvement and further research.

The impact of mobile money adoption on firm innovation

Using firm-level survey data for 16 Sub-Saharan African countries, we find evidence that mobile money adoption increases firms’ innovation. Further analysis shows that mobile money fosters innovation by improving firms’ liquidity through greater access to trade credit and bank loans. Our findings suggest that policy measures to stimulate innovation in developing countries could focus on incentivizing firms to adopt mobile money.

Gambling preference, information risk, and the pricing of bank loans

ABSTRACT Our study explores the effect of local gambling preferences (LGP) on bank loan pricing, revealing that lenders impose significantly higher interest rates on firms situated in areas characterized by stronger gambling tendencies. Our results remain robust after conducting a series of sensitivity tests that account for firm-, county-, and loan-specific attributes, as well as several identification robustness checks. Specifically, our relocation analysis shows that firms moving to areas with higher (lower) gambling preferences experience higher (lower) costs of bank loans compared to control groups. Our channel analysis further reveals that local gambling preferences exacerbate a firm's information risk environment, as captured by poorer earnings quality, heightened earnings risk, and greater managerial concealment of bad news, resulting in higher borrowing costs. Finally, we observe that firms in areas with higher LGP encounter more stringent non-price loan terms. However, institutional ownership and the threat of takeovers significantly mitigate the adverse effect of LGP on bank loan pricing.

IMPORTANCE OF PUBLIC FUNDS AND DEBT CAPITAL IN FINANCING INVESTMENTS IN POLISH AGRICULTURE IN 2004-2022

The article assesses the importance of public funds and debt capital in financing investment outlays in agriculture in Poland in 2004-2022. The analysis used statistical data on inputs of production factors in agriculture, in particular investment outlays, as well as budget expenditure on agriculture, farmers’ credit indebtedness and leasing of agricultural machinery. The analysis included both nominal values and values adjusted for the CPI index. It has been shown that capital expenditure in agriculture increased in the years 2004-2022, including nominal and real investment expenditure. During the period under study, the importance of public funds, from the national budget and European funds, in financing agriculture increased. This also applied to investments in agricultural farms. In 2004-2019, a dynamic increase in investment outlays financed in the form of bank loans and leasing could also be observed. A positive correlation was demonstrated between investment expenditure in agriculture and the level of budget expenditure on agriculture and farmers’ credit indebtedness. In the last years of the period under review, i.e. 2020-2022, a decrease in the share of external capitals in the form of long-term bank loans and leasing in financing fixed assets in agriculture was observed.

Consumer in the Buy Now, Pay Later Market – Opportunities and Threats

The purpose of the article. The purpose of the article is to identify opportunities and threats for consumers related to BNPL payments. Methodology. The article uses the analysis of existing data (in particular the current reports on the BNPL sector) and the results of a questionnaire survey. The CAWI questionnaire survey was conducted on a group of 100 people (50 women and 50 men) in January–February 2024. The survey was addressed to the group of people aged 25–34 due to the fact that, in the light of literature research, people of this age most often use deferred payments. The survey was sent to graduates of the Faculty of Economics and Sociology of the University of Lodz who fit into the deferred payment customer profile. Results of the research. The article identified opportunities and threats for customers of the BNPL sector, highlighted a profile of a customer using deferred payments, and presented the legal and psychological aspects related to deferred payments. Additionally, the article compared BNPL payments with credit cards, bank loans and non-bank loans, and related the results to the potential risk of over-indebtedness.