Minimum Capital Research Articles

Market-Consistent Valuation and Capital Assessment for Demographic Risk in Life Insurance: A Cohort Approach

We explore the quantification of demographic risk in accordance with the market-consistent actuarial valuation principles. Our contribution includes closed formulas for assessing the inflows and outflows of an insurance policy portfolio using a cohort approach. To maintain versatility, we address both traditional and equity-linked policies, providing a market-consistent valuation of liabilities. Subsequently, we compute the capital requirement for idiosyncratic risk (linked to accidental mortality) and systematic risk (trend risk), presenting an approach that allows consideration of the risks at cohort level. Specifically, we evaluate the minimum capital using an annual time horizon, a 99.5 % confidence level, and the Value at Risk as the risk measure, developing a framework aligned with the European Solvency II regulation for insurance and reinsurance companies. Moreover, the model can be easily adapted to accommodate other regulatory frameworks, incorporating specific rules and accounting principles relevant to diverse jurisdictions worldwide. The numerical analysis and the sensitivities reveal that the accidental volatility of policyholders’ deaths is influenced by the inherent characteristics of the cohort’s policies, the age of policyholders, and the variability of sums insured. Furthermore, trend risk is contingent on both accidental volatility and the longevity forecasting model employed.

Minimum Capital Requirements for Banks and the Financing of the Economies of the Economic and Monetary Community of Central Africa1

Abstract This article analyses the impact of minimum bank capital on the financing of economies of the Economic and Monetary Community of Central Africa over the period 1998-2020, based on data from the Bank of Central African States and the annual reports and bulletins of the Banking Commission of Central Africa. To do this, we analysed the impact of minimum bank capital requirements on the real cost of credit, the term structure of credit and on economic agents with financing needs. We used a panel VAR specification estimated using the Generalised Method of Moments and impulse response function analysis based on Monte Carlo simulations to arrive at two main results: minimum bank capital reduces the cost of credit and increases the economy’s credit level. The conclusion is that regulators would benefit from encouraging credit institutions to increase the current level of bank capital in order to benefit from the positive effects of minimum bank capital.

Pengaruh Modal Minimum, Kepatuhan Syariah dan Preferensi Resiko Terhadap Minat Berinvestasi Pasar Modal Syariah

This research aims to determine the influence of minimum capital, sharia compliance, and risk preferences on interest in investing in the sharia capital market with an understanding of investment as a moderating variable. The case study in this research is generation Z in Bogor. This research uses the SEM PLS method using SmartPLS 4 software. The number of samples in this research was 115 respondents. The research results show that minimum capital does not have a significant effect on investment interest. Sharia compliance has a significant effect on investment interest and risk preferences also have a significant effect on investment interest. Meanwhile, investment understanding cannot yet be a moderating variable on minimum capital. However, investment knowledge is successful and significant as a moderator of the relationship between Sharia Compliance on investment interest and risk preferences on investment interest.

The Influence of Sharia Financial Literacy, Technological Advances, Return Expectations, and Minimum Capital on Generation Z's Interest in Investing in the Sharia Capital Market

The Influence of Sharia Financial Literacy, Technological Advances, Return Expectations, and Minimum Capital on Generation Z's Interest in Investing in the Sharia Capital Market

PERHITUNGAN HARGA OPSI EROPADENGAN METODE TRINOMIAL PADA PERUSAHAAN MITSUBISHI

Investment is an important instrument in the financial market. The investment objective is to obtain large profits with minimum capital. The trend that is currently developing is that investors are not only interested in investing in real assets, but they have great attention to investing in financial assets such as shares. However, to gain profits, investors must face risk and uncertainty. Among the solutions to reduce these risks are derivatives. Stock options are one of the widely used derivative products. An important instrument in stock options is the method of determining option prices according to the type of option. European option prices can be determined using several methods, namely the Black-Scholes method, binomial method, and trinomial method. This research aims to implement the trinomial method in determining European option prices, both Call options and Put options on Mitsubishi UFJ Financial Group (MUFG) shares. The results of determining option prices using the trinomial method are then compared with the results of the Black-Scholes method which aims to analyze the convergence of the two. The research results show that the trinomial method can be used to determine stock option prices for the Mitsubishi company more flexibly than the Black-Scholes method. In addition, the results show that the trinomial model converges to the Black-Scholes method.

The Legal Rationale Behind the Determination of Minimum Capital Requirements for Limited Liability Companies by Founders in Indonesia

The Legal Rationale Behind the Determination of Minimum Capital Requirements for Limited Liability Companies by Founders in Indonesia

Influence of investment knowledge, minimum capital, influencers, technological progress on students interest in investing in the capital market

This research aims to analyze the influence of investment knowledge, minimum capital, influencers, technological advances, and student's interest in investing. The population for this study were all tertiary students in the city of Denpasar totaling 85,595 people and the number of samples calculated using the Slovin formula was 398 people. This study used a data collection technique, namely a questionnaire. The analysis technique in this study is multiple linear regression analysis. The results of this research are that investment knowledge, influencers, and technological advances have a positive effect on investment interest, while the minimum capital has no effect on student's investment interest.

Minimum Capital in Company Law: A Perspective from Vietnam

<p>隨著國際經濟整合的演進，法定資本制於1990年首次移植到越南法律體系中：人們必須符合強制性最低資本額之要求，才能成立和經營公司，惟人們對其實際執行情況及其對促進經濟持續進步的調節作用尚存疑慮，因此，本文將從三個面向呈現研究分析之成果。首先，本文引介越南法定資本制度的歷史背景。其次，評估審視監管在商業領域中的作用，發現當前已經不具有必要性。最後，經過前揭分析，本文提出具體建議，期能改善越南所有投資者的情況，並為所有投資者建立一個更有效、更透明的法律框架，亦即廢除法律體系中強制性之最低資本額的要求。國家可以監管這些業務的存款資金、或要求這些企業在其經營過程中遵守強制性最低資本數額之規定，本文適當地解釋了強制性最低資本額之要求背後的理論基礎。</p> <p> </p>

Impact of Regulatory Influence on Financial Performance of National Microfinance Banks in Nigeria

While existing literature has acknowledged the pivotal role of regulatory measures in shaping the operational landscape of financial institutions, there remains a notable gap in understanding the direct consequences of such regulations on the financial performance of NMBs in Nigeria. This study explores the impact of regulatory measures, specifically sanctions, penalties, and Minimum Capital Requirement (MCR), imposed by the Central Bank of Nigeria (CBN) on the financial performance of NMBs. This research adopts an ex-post facto research design, using data from the past six years of seven operational NMBs. The Agency Theory and Pecking Order Theory provide theoretical frameworks to interpret these relationships. The study reveals that regulatory measures significantly influence the allocation of micro loans within NMBs, reflecting the alignment of managers’ interests with those of stakeholders. However, regulatory factors alone do not adequately explain variations in ROA, indicating the presence of complex and unexamined factors affecting financial performance. Individual regulatory variables, such as sanctions, penalties, and MCR, also do not have a significant multivariate impact on RMLT or ROA. The study recommends that Nigerian National Microfinance Banks (NMBs) should closely monitor and adapt to Central Bank regulations, particularly regarding sanctions, penalties, and Minimum Capital Requirement, despite the absence of a direct multivariate link to financial performance indicators; it also advises diversifying strategies to enhance Returns on Assets (ROA) and suggests further research for a deeper understanding of NMB sustainability dynamics.

Exploring the Interplay of Investment Knowledge, Motivation, Minimum Capital, and Risk Perception in Shaping Students' Interest in Capital Markets

The primary objective of this research is to conduct an analysis of the impact of independent variables, specifically Investment Knowledge, Motivation, Minimum Capital, and Risk Perception, on Investment Interest. The study encompasses the 2019 cohort of students enrolled in the Management Study Program, comprising a total of 453 individuals, including both regular students and employees. The selection of the research sample follows a probabilistic approach, utilizing purposive sampling techniques. This method involves the establishment of specific criteria that prospective samples must meet, resulting in a final sample size of 212 students. Data collection was accomplished through the distribution of questionnaires to the student cohort, serving as the primary data collection instrument. The data analysis procedures employed in this study encompass descriptive analysis and inferential analysis, with the latter involving multiple linear regression. Statistical analysis was conducted using the Statistical Product and Service Solution (SPSS) version 23.0 software. The findings of this research underscore the significant and positive influence of Motivation, Minimum Capital, and Risk Perception on Investment Interest. However, it is worth noting that Investment Knowledge, while positively correlated with Investment Interest, did not yield statistically significant results in this context.

Investment Decision on an Issuer in the Capital Market Based on Financial Literature, Minimum Capital, and Fear of Missing Out (FOMO): A Case Study of Trader Community

This research aims to determine investment decisions based on financial literature, minimum capital and Fear of Missing Out (FOMO). This research uses quantitative research with data collection techniques through questionnaires distributed to members of the trader group community. Using a purposive sampling technique, the sample taken in this research was 100 investor group members. The data analysis method in this research uses Smart Partial Least Square version 4.0 The results of this research show that Financial Literature has a significant influence on Investment Decisions, Minimum Capital does not significantly influence Investment Decisions and Fear of Missing Out has an influence on Investment Decisions.

Pengaruh Modal Minimal, Religuisitas, Dan Uang Saku Terhadap Minat Berinvestasi Mahasiswa Manajemen Keuangan Syariah Angkatan 2020-2022 Uin Sayyid Ali Rahmatullah Tulungagung Terhadap Pasar Modal Syariah

The results of the data findings in this study are useful for finding and seeing the impact of minimum capital, religiosity, and pocket money on the interest in investing in the 2020-2022 MKS major in the capital market. The approach in this research is using a quantitative approach. Data collection techniques in this study used questionnaires. The source of the data in this study was primary data, amounting to 90 respondents from the people of Blitar Regency. The data that has been collected is then tested using SPPS, namely testing several tests which include reliability test, data normality test, multicollinearity test, heteroscedasticity test, T test, and F test. on the interest in investing in students majoring in MKS class 2020-2022 in the capital market in the capital market. Partially, the religiosity variable (X2) has an influence on the investment interest of students majoring in the 2020-2022 MKS class in the capital market. Partially, the pocket money variable (X3) has an influence on the interest in investing in the 2020-2022 MKS major in the capital market.
 Keywords: Minimum Capital, Interest, Investment, Religiosity, Pocket Money.

Central Bank Regulations and the Financial Sustainability of National Microfinance Banks in Nigeria

This study examines the impact of Central Bank Regulations on the Financial Sustainability of National Microfinance Banks in Nigeria. The study employed the expost-facto research design. Data was collected from the central bank bulletins and the financial reports of the sample seven national Microfinance banks. The data collected was analysed using Multivariate Analysis of Variance (MANOVA). The findings derived from the empirical analysis revealed significant relationships between the Minimum Capital Requirement, and the financial sustainability indicators, including returns on assets (ROA) and returns on equity (ROE) and confirmed that the Minimum Capital Requirement imposed by the central bank has a significant impact on the financial sustainability of microfinance institutions. Based on the findings of the study, the following policy recommendations can be made; Policymakers and regulators should continue to enforce and monitor the Minimum Capital Requirement for microfinance banks. Adequate capitalization is essential for the financial sustainability and profitability of microfinance institutions. However, the capital requirement should be flexible enough to accommodate the specific needs and characteristics of microfinance banks, considering their focus on serving the underserved segments of the population. And Microfinance banks should prioritize maintaining an adequate level of capital to ensure their ability to generate returns on assets. This can be achieved through effective capital management strategies, including attracting additional capital from investors, optimizing internal capital generation, and ensuring efficient use of capital in productive activities.

Generation Z’s Investment Determinants In Sharia Mutual Fund

The Sharia financial industry has developed rapidly, including Sharia banks, capital markets, and other financial products, thus providing more choices to investors who want to invest per Sharia principles. This study investigated the impact of minimum capital, Islamic financial literacy, investment risk, returns, and social media on the investment decisions of Generation Z in Islamic mutual funds. The data was collected from a questionnaire distributed in Jakarta, which yielded 390 valid responses. Regression analysis revealed that minimum capital, financial literacy, investment risk, returns, and social media significantly influence investment decisions in Islamic mutual funds. The study found that social media and investment risk were the two most significant factors affecting investment decisions, followed by minimum capital, returns, and financial literacy. The minimum capital of investors' decision-making in Sharia mutual fund investment has yet to be thoroughly explored in the literature, especially in the Indonesian context. Moreover, this study contributes to the behavior of Gen Z investors in the Islamic investment research area.

PENGARUH PENGETAHUAN INVESTASI, MODAL MINIMAL, DAN MOTIVASI INVESTASI TERHADAP MINAT MAHASISWA BERINVESTASI DI PASAR MODAL SYARIAH

This research was conducted with the aimed of knowing the effect of investment knowledge, minimum capital, and investment motivation on the interest of Islamic Financial Management students class of 2019-2021 at UIN Sayyid Ali Rahmatullah Tulungagung to invest in the Islamic capital market. The research approach with probability sampling. The result of the data were obtained by distributing a questionnarire with a slovin calculation of 90 respondets. Data analysis technique using multiple regression analysis. With the result of the test on the effect of investmen knowledge has a positive and significant effect on investment interest. Minimum capital has a positive and significant effect on investment interest. And investment motivation has a positive and significant effect on investment interest in the Islamic capital market.

The Basel 2.5 capital regulatory framework and the COVID-19 crisis: evidence from the ethical investment market

PurposeThis research aims to evaluate the accuracy of several Value-at-Risk (VaR) approaches for determining the Minimum Capital Requirement (MCR) for Islamic stock markets during the pandemic health crisis.Design/methodology/approachThis research evaluates the performance of numerous VaR models for computing the MCR for market risk in compliance with the Basel II and Basel II.5 guidelines for ten Islamic indices. Five models were applied—namely the RiskMetrics, Generalized Autoregressive Conditional Heteroskedasticity, denoted (GARCH), fractional integrated GARCH, denoted (FIGARCH), and SPLINE-GARCH approaches—under three innovations (normal (N), Student (St) and skewed-Student (Sk-t) and the extreme value theory (EVT).FindingsThe main findings of this empirical study reveal that (1) extreme value theory performs better for most indices during the market crisis and (2) VaR models under a normal distribution provide quite poor performance than models with fat-tailed innovations in terms of risk estimation.Research limitations/implicationsSince the world is now undergoing the third wave of the COVID-19 pandemic, this study will not be able to assess performance of VaR models during the fourth wave of COVID-19.Practical implicationsThe results suggest that the Islamic Financial Services Board (IFSB) should enhance market discipline mechanisms, while central banks and national authorities should harmonize their regulatory frameworks in line with Basel/IFSB reform agenda.Originality/valuePrevious studies focused on evaluating market risk models using non-Islamic indexes. However, this research uses the Islamic indexes to analyze the VaR forecasting models. Besides, they tested the accuracy of VaR models based on traditional GARCH models, whereas the authors introduce the Spline GARCH developed by Engle and Rangel (2008). Finally, most studies have focus on the period of 2007–2008 financial crisis, while the authors investigate the issue of market risk quantification for several Islamic market equity during the sanitary crisis of COVID-19.

PENGARUH AKTIVITAS GALERI INVESTASI SYARIAH, MODAL MINIMAL, DAN EFIKASI KEUANGAN TERHADAP MINAT INVESTASI

The problem in this research is the lack of investment interest in students through education and training. This is because it is not supported by minimum capital and financial efficiency owned by students. Therefore this study aims to determine the effect of Islamic investment gallery activities, minimum capital, and financial efficacy on investment interest. Either partially or simultaneously. The results showed that: (1) there was a positive and significant influence between Islamic investment galleries on investment interest, as seen from the T-value of 2.859 > from T-table = 1.971 at a significance of 2.5%. (2) there is a positive and significant influence between minimum capital on investment interest, as seen from the T count of 3,066 > from T table = 1.971 at a significance of 2.5%. (3) there is a positive and significant influence between Financial Efficacy on investment interest, as seen from the T count of 6.363 > from T table = 1.971 at a significance of 2.5%. The practical implications of this research are: (1) if students start to feel the benefits of the education provided by Islamic investment galleries, the interest in investing will be even higher. (2) if the minimum capital can be reached by students, it will have an impact on increasing interest in investment. (3) if students have high financial efficacy it will have an impact on increasing investment interest.

Hubungan Motivasi, Modal Minimal, Literasi Keuangan, dan Minat Investasi Saham Taat Syariah

Shares are one type of investment instrument that is most popular with the public, because the amount of capital issued is minimal and stock investment regulations are easy. Sharia compliant shares have better resilience compared to conventional shares. This research aims to determine the relationship between motivation, minimum capital and financial literacy in the context of sharia-compliant stock investment. A total of 118 students were observed as samples. A multiple linear regression approach was used for data analysis in this study. The research results show that motivation and financial literacy have a positive effect on the intention to invest in sharia shares, while minimum capital has no effect on the desire to invest in sharia shares.
 Keywords: Sharia Compliant Stocks; Motivation; Minimal Capital; Financial Literacy; Investment Interest

The Effect of Financial Literacy, Investment Knowledge, and Minimum Capital on Student Interest in Investing in the Capital Market

Investment interest is a person's intense desire to learn everything about investing. The aim of this study is to examine the effect of financial literacy, investment knowledge, and minimum capital on student interest in investing in the capital market. The quantitative method of distribution of questionnaires was utilized for the research. The population in this study consisted of 3,743 students from the Faculty of Economics and Business at Universitas Pembangunan Nasional "Veteran" Jawa Timur, with a sample size of 100. The sample was drawn using the proportional stratified random sampling method using the Slovin formula. The data analysis method used was Partial Least Squares (PLS). According to the study's findings, financial literacy and minimum capital has an effect on investment interest. Meanwhile, investment knowledge has no effect on investment interest.

Analysis Of The Effect Of Motivation And Knowledge About Capital Market, Return, Risk And Minimum Capital On Interest To Invest In The Indonesia Stock Exchange (Case Study In The Financial Audit Board Of The Republic Of Indonesia)

The purpose of this study was to find out how the influence of motivation, capital market knowledge, return, risk and initial capital on interest in investing in the Indonesia Stock Exchange.The research method uses a quantitative approach using primary data in the form of a survey through a questionnaire instrument, while the analytical method uses multiple regression statistical analysis. The research sample is BPK employees with random sampling technique.Based on the results of this study confirms: 1) Motivation has a positive and significant effect on interest in investing, the results of statistical tests noted that 49.4% of investment interest is influenced by motivation which shows that BPK employee motivation has a positive and significant influence on investment interest; 2) Knowledge of the capital market has a positive effect on investment interest. The results of statistical tests noted that 19.8% of BPK employees' investment interest was influenced by knowledge of the capital market; 3) Knowledge of Return has an effect on investment interest. The results of statistical tests noted that only 9.8% of BPK employees' investment interest was influenced by knowledge of returns; 4) knowledge about risk has a positive effect on investment interest. The results of statistical tests noted that 0.277 or 27.7% of knowledge about risk affects the investment interest of BPK employees; 5) Knowledge of minimum capital has an effect on investment interest. The results of statistical tests noted that 11.3% knowledge of minimum capital affects the investment interest of BPK employees; and 6) Motivation, knowledge of the capital market, stock returns, risk and minimal capital together have an effect on interest in investing in the capital market. The results of statistical tests noted that 76.9% interest in investment is jointly influenced by motivation, knowledge of the capital market, stock returns, risk and minimal capital. Meanwhile, the remaining 23.1% is influenced by external factors other than the five independent variables studied.