Municipal Banks Research Articles

Fintech model performance analysis in credit loans: evidence from China city commercial banks

ABSTRACT The analysis of bank loan performance has consistently been a central issue in banking research. With the impact of the COVID-19 pandemic, we have witnessed a significant increase in online loans. Our study employs fintech models to develop a big data credit analysis system, evaluating model efficiency and the effect of ‘data organization’ on predictive performance for city commercial bank loans. Our results show that training data size, timeliness, and inter-bank ‘data sharing’ significantly affect model predictions. We also find that traditional econometric models (Logit and Probit) have the weakest predictive ability. However, ‘most advanced’ deep learning models perform worse than machine learning models with lower algorithmic complexity, such as Random Forest. Besides, ‘sharing training data’ generally increases model efficiency, but there are exceptions for larger city commercial banks. This paper provides ample empirical evidence for the application of the fintech model in bank loan credit. It highlights several characteristics of training data, such as size and timeliness, which greatly affect model efficiencies. We also provide policy recommendations for fintech transition and collaboration among municipal banks.

Banking Crisis of the 1880s in the Russian Empire: New Quantitative Data and Estimates

The study deals with the most significant crisis in the history of Russian banking, which occurred when 49 municipal banks and 13 mutual credit societies went bankrupt from 1882–1889. Historians have explained the causes of the crisis in various ways; however, these explanations are not fully verifiable due to lack of consolidated quantitative data on operations for municipal banks and mutual credit societies. Therefore, a new quantitative data set on these credit institutions was composed for this study. Comparison of the dynamics of joint-stock commercial banks, municipal banks, and mutual credit societies for 1875–1895 revealed that the decline in municipal banks was particularly sharp and deep, and it did not correlate with the dynamics of other banking institutions. This paper proves that the municipal banks crisis was caused by the accumulation of bad loans, poor financial stability, and the lack of proper control by municipal councils and the Ministry of Finance. Overcoming of these problems launched a new phase of banking regulation and supervision in the Russian Empire, which has been underestimated in historiography. The “pushing out” of municipal banks from risky operations was necessary to protect the financial interests of the municipal self-government associated with these banks. However, the crisis also had a pronounced regional perspective because most of the bankruptcies occurred in the Central Black Earth Region, and therefore the crisis was caused by a contraction in agricultural exports due to falling prices, combined with local crop failures in the first half of the 1880s.

Municipal public bank as a component of life the Ukrainian city in the late 19th – early 20th century

The emergence of financial institutions such as municipal public banks had a significant positive impact on the socio-economic development of cities. The purpose of the study is to analyze the impact of municipal public banks on economic and social development of cities, as well as on the development of urban infrastructure during the second half of 19th – early 20th century. The research methodology is based on the principle of historicism, application of general scientific and special scientific methods, in particular analysis of the information potential of statistical and information resources of the Central Statistical Committee of 1866–1918, provincial and zemstvo statistics. The main stages of the government's policy concerning the activities of these banks and its impact on the level of development of the latter are highlighted. The network of municipal public banks in the Ukrainian provinces of the late 19th – beginning of the 20th century was reconstructed. Since their inception, municipal public banks contributed to urban development in several areas, such as increasing the financial capacity of the local population and the capacity of the city government. The top of the city administration joined the ranks of bank management and supervisory boards for their activities. Banks were becoming one of the most active city patrons. The main problem in the development of municipal banks was to determine the relationship between government regulation and the independence of bank boards. This trend can be traced in the banking legislation of the last third of the 20th century.

Is a State Bank A Useful Economic Development Tool in the USA?

AbstractThe possibility of creating a state bank has received much recent attention in the USA. In 2021, six states introduced legislation to create a state bank; in 2019, similar legislation was enacted in California for municipal banks. This article develops a framework to evaluate state banking, reviews prior experiences with state banking and related alternatives to traditional private banking, and identifies five questions determining the advisability of creating a state bank. The overall goal is to shed some light on whether a state bank can be a useful tool to further state economic development and the welfare of state residents (JEL codes: G21 (banks), G28 (government policy, financial institutions), and H70 (state and local governments)).

The Сrisis of Municipal Banks in the Russian Empire in the 1880s: A Financial Stability Analysis of Historical Data

This study deals with the causes of the crisis of municipal banks in the Russian Empire in the 1880s. The focus is on the most difficult years of 1882–1887, when 39 banks were closed. In total, 60 out of 287 banks (more than 20%) left the market between 1878 and 1893. Municipal banks were accountable to city councils, which were responsible for these banks’ operations; therefore, their success or failure had a serious impact on cities’ fortunes. This study is based on the public accounting statements of municipal banks from 1877–1894. Through a financial analysis, it proves that the crisis was largely caused by the weak stability of the banks’ operations. Many banks did not employ sufficient care to insure the risks of their operations in case of a possible crisis, throwing an excessively large proportion of their highly liquid assets into circulation. This behavior left them virtually defenseless against a panic withdrawal of deposits. Similar trends were observed in many banks, but the surviving banks were on average more conservative than those that eventually closed during the crisis. By the mid-1890s, the financial stability of municipal banks had markedly improved, which was largely the result of tightening regulations.

Are Central Government Rules Okay? Assessing the Hidden Costs of Centralised Discipline for Municipal Borrowing

In the EU, the specialty municipal banks have been the traditional funding source besides tax sharing and governmental transfers for Local Governments (LGs). With the decentralization process, LGs experienced different market-based options so that banks were no longer the only source of funding. However, with the onset of the Eurozone crisis, public sector debt is no more risk-free, and the cost of borrowing became unstable over time. To minimise such risks, Central Governments forced LGs to adopt general principles of control of local borrowing. Previous studies evidenced that centralised controls affect unitary countries more than federations. This paper investigates the Centralised Discipline and Control Model to understand whether it generates hidden costs. For such a purpose, the paper compares municipal bonds against borrowing from banks in Italy, a European unitary country. This paper highlights the existence of hidden costs for Italian LGs because the Central Government set up an expensive system for controlling the entire public sector debt. Policy makers should pay particular attention to which model of control to adopt by considering their country’s specific characteristics and the potential impacts of the different models on them, according to the present economic circumstances.

ІСТОРИЧНІ, ОРГАНІЗАЦІЙНІ ТА ПРАВОВІ АСПЕКТИ СТАНОВЛЕННЯ ФІНАНСОВО-КРЕДИТНОЇ СИСТЕМИ ДРУГОЇ РЕЧІ ПОСПОЛИТОЇ

У статті розкрито історичні, організаційні та правові аспекти становлення фінансово-кредитної системи Другої Речі Посполитої. Висвітлено умови, в яких відбувалося становлення кредитної системи, проаналізовано її правові та організаційні аспекти. Показано кількісну і якісну динаміку розвитку банківських та кредитних установ. Висвітлено процес формування та функціонування фінансово-кредитної системи польської держави в 20—30-х роках XX століття. Встановлено, що його становленню перешкоджали наслідки Першої світової війни: зруйнована економіка, девальвація валюти тощо. Головною проблемою влади була гіперінфляція. На початку 1920-х років були прийняті закони про проведення фінансової реформи. Були створені акціонерний банк Польщі, банк національного господарства та сільськогосподарський банк. Введено польські злоти. Визначено суб’єкти та умови банківської діяльності. Сформовано регульований ринок грошей, який представляли державні, муніципальні та приватні банки. Відбулося інституційно-правове формування кредитної системи. У регіонах почали працювати відділи державних банків, ощадні каси органів місцевого самоврядування, кредитні кооперативи. Уряд фінансував економіку через регулювання грошового ринку. Воно здійснювалося двома способами. Визначено максимальну межу процентної ставки для приватних банків та збережено низьку процентну ставку для польського Національного банку, державних і муніципальних банків. Створений банківський сектор забезпечив сприятливі умови для розвитку ринкової економіки, структурної перебудови промислового та сільськогосподарського виробництва, діяльності органів місцевого самоврядування по всій країні. В сучасних умовах необхідно враховувати історичний досвід функціонування польської фінансово-кредитної системи для підвищення внутрішнього інвестиційного потенціалу України.

Claim Dilution in the Municipal Debt Market

Using loan-level municipal bank lending data, we examine the debt structure of municipalities and its response to exogenous income shocks. We show that small, more indebted, low-income, and medium credit quality counties are particularly reliant on private bank financing. Low income counties are more likely to increase bank debt share after an adverse permanent income shock while high income counties do not shift their debt structure in response. In contrast, only high income counties draw on their credit lines after adverse transitory income shocks. Overall, our paper raises concerns about claim dilution of bondholders and highlights the importance of municipal disclosure of private debt.

Fundamental basis of budget revenues theoretical analyses of forecasting

This paper investigates the major points of budget revenues in inter-budgetary relations while learning methods of their forecasting. Moreover, the way of procedures on financial parts of budgetary is analyzed both theoretically and practically. Finally, outcomes of research paper are concluded and major feedbacks according to shortcomings were stated to make further investigations in the mentioned issue. National budget funds are redistributed among budgets of different levels by assigning subventions and subsidies to lower-level budgets, granting budgetary loans, and channeling budgetary funds to the higher or lower-level budget through mutual settlement schemes created during budget implementation. However, no municipal banks currently exist. The national budget is comprised of the national budget, the budget of the Karakalpak Republic and local budgets. The national budget consolidates national funds earmarked for specific purposes. The draft Law on the Budgetary System is under discussion and there is no special law on local public finances. Thus: the distribution function provides education budgetary funds (budget revenues); redistribution-use budgetary funds (budget expenditures); control-creating conditions to monitor the receipt of funds to the budget and their use. From the radical economic reforms in the period of transition to a market economy, through the creation of the ultimate objectives of the economic system based on market mechanisms to achieve sustainable economic growth.

Penggunaan BUKU dan Kepemilikan dalam Menganalisis Efisiensi Perbankan di Indonesia

In December 2016, there are 116 commercial banks in Indonesia. Those banks are divided into few categories. Two of them are commercial banks based on business activity (BUKU) and based on ownership. This research analyzes all commercial banks that operates between 2012 and 2016 and divide them into two categories mention before. The aim of the research is to find out efficiency score using SFA method based on those two categories. The result show that banks in BUKU 3 have the highest efficiency score, followed by BUKU 1, BUKU 4 and BUKU 2. Meanwhile, on ownership category, state owned enterprise banks have the highest score. It then followed by foreign banks, private .banks, municipal banks and the last one mix ownership banks

Houldsworth Centre, Lanarkshire, Scotland: a new civic facility.

By 2015 our 1970s Wishaw Health Centre was no longer fit for purpose: too small with too few consulting rooms, no space for greatly expanded primary care. Houldsworth Centre, Wishaw, Lanarkshire, Scotland. ©Tricia Malley Ross Gillespie www.broaddaylightltd.co.uk Since joining my practice in 1988 consultant numbers in our local district general hospital have increased by a factor of five, but acute beds decreased by a third and long-stay beds in psychiatry and geriatrics almost completely closed with their patients now cared for in community settings. Also during this time undergraduate and general practice postgraduate teaching and training have moved into community settings. Our old building was simply inadequate for our increased clinical and teaching workload. The number of GPs in Wishaw Health Centre has remained the same since 1988. However, we now have three practice nurses instead of one, and treble the number of receptionists, administrators, and IT staff. We now teach students from two Scottish medical schools (Glasgow and Dundee), with Edinburgh to follow, and have billets for an FY2 and two specialist general practice trainees (ST1 and ST3). We have an annual postgraduate trainee from the American University of Beirut, Lebanon, and in 2016 will have visiting trainees from Japan and Ireland. In 2016 we welcome our first pharmacist in training. Our old building was also host to important community nursing services: district nurses, treatment room nurses, health visitors, community psychiatric nurses, midwives, and podiatry and physiotherapy care. All working in an out-of-date clinical environment. Other secondary care services with a strong role in community health care — psychiatry, community dentistry, community paediatrics — were scattered about the town in cramped and ageing premises. As were other public services: housing, our municipal bank, social services, and the Citizens Advice Bureau. Also unfit for purpose was our 1970s Wishaw Library, …

The credit banking system of Samara region in the 1920s

The article reviews the changes undergone by the bank crediting system in the USSR in the 1920s as exemplified by the activities of the Samara city municipal bank. The main goals of economic development and, primarily, currency circulation under a new economic policy of the Soviet government are emphasized. Attention is focused on the state of the economic system of the region and changes in the functions of the municipal bank in the areas of industry, agriculture, wholesale trade and transport. The relationships between the Central bank of public utilities and residential housing, on the one hand, and regional banks, on the other, as well as the role of the Samara city municipal bank in developing residential housing and public utilities in the region are shown. Special attention is paid to the solution of the problem of assisting housing construction for workers. The right of municipal banks to issue bonded loans is discussed, changes in the operating of regional banks in the late 1920s are determined. The article covers the processes of reorganization of the financial credit system related to the strengthening of economic management centralization and formation of planned economy. Attention is paid to the peculiarities of the activities of Samara city municipal bank after implementing the administrative-territorial reform. The article includes statistical data on the results of the Samara city municipal banks activities during the period under investigation.

Virtual Municipal Banks of Cell Donors - An innovative concept to promote Education for Donation in Transplantation and Disease Prevention

The North Histocompatibility Centre - Portugal in partnership with the Municipal Council of Penafiel, created in the North of Portugal an innovative concept of civil society participation to promote cell and organ donation. The organization of virtual municipal banks of Bone Marrow Donors in close relationship with the North Histocompatibility Centre has involved the basic municipal structures in the country organization. Villages and small cities have official municipal services collaborating in cell, tissue, organs and cord blood donation promotion. 40 cities and villages started the project this year. In the city halls and official local buildings there are informative flyers, posters, educational DVDs about donation, newspapers with information about transplantation, papers to register as a donor, lists to register as a potential donor, information about collection dates to Bone Marrow donors in the city, neighboring towns or villages. In that municipal buildings can be found people who participated in educational meetings to be able to give local information about cell, tissue, organs donation and transplantation, web sites and educational material locally available. This innovative concept to mobilize civil society around transplantation and donation has also the implicit component of Education for Health in order to prevent diseases leading to the need for transplantation. Apealing to people to donate implicitly carries the responsibility to teach those same people to avoid diseases that lead to the need for transplantation. So, the second part of this partnership with local communities involves Schools. Teachers of Biology and Philosophy from the basic and medium schools are recruited to teach cell biology, concepts about diseases needing transplantation and ethics in transplantation. Local universities, especially higher education courses related to health are involved to collaborate in school teachers courses about these subjects. The Portuguese Transplantation Society supports these initiatives and educational material developed. The schools include in their curriculum the subject of donation and transplantation and develop discussions and free works with groups of students that are interested in the subject. The program in the schools has a fix part and a free one where students can do blogs, web sites, paintings, sculptures, meetings, poems, theatre, study visits to transplantation units or to the labs, etc The involvement of local communities in this way is much more creative and creates a stronger connection between health institutions and citizens. Local political power is much more effective mobilizing citizens than central governments. Using municipal councils to mobilize society around transplantation and donation we can reach the locals of proximity of those populations. The expected secondary achievement of this innovative concept it is not only increase donors but also reduce patients needing transplantation in the next years teaching healthy life styles. To reduce governmental budgets to transplantation by reducing patients is the financial desired achievement in the future.

Harnessing Private Funds to Alleviate the Australian Local Government Infrastructure Backlog

A series of national and state public inquiries into the financial sustainability of local government have demonstrated that all Australian local government jurisdictions face a daunting local infrastructure maintenance and renewal backlog. Various solutions to the problem have been advanced in the literature, including the establishment of an Australian municipal bond market to facilitate the use of private sector finance to fund the remediation of the infrastructure shortfall (Byrnes et al., 2008). However, despite the conceptual attraction of this particular policy proposal, as a majority of Australian local authorities are small, with limited administrative and technical capacity, they would have great difficulty in securing access to a municipal bond market. In this paper, we consider municipal banks and bond banks as alternative institutional solutions to the Australian local government infrastructure backlog.

The absence of public exchange banks in medieval and early modern Flanders and Brabant (1400–1800): a historical anomaly to be explained

The article aims to present an explanation for the complete absence of public municipal banks in the Southern Low Countries, and particularly in its two main principalities Flanders and Brabant, between 1400 and 1800. The reasons were complex, lying in a combination of the presence of adequate substitutes such as money changers, cashiers and town exchange offices (stadswissels) and countervailing factors (adverse economic conditions, insufficient financial resources, special interests of persons and lobbies). It is also argued that strong government control of the Antwerp urban debt prevented the local authorities from experimenting with a municipal bank.

An Empirical Analysis of Peruvian Municipal Banks Using Cost-Efficiency Frontier Approaches

This paper compares alternative frontier techniques to measure cost-efficiency and analyzes explanatory variables for Peruvian Municipal Banks (PMBs) from 1994 to 1999. Consistency of results from parametric and non-parametric cost frontier approaches is tested. Banks performing well and those performing poorly are identified. Furthermore, the departure of German technical assistance is tested for its efficiency effects. Mid-sized PMBs appear as the most efficient, while one old large one and another small young one are the least. Discrepancies in ranks appear in the middle positions. Bank location, size, and productivity are significant determinants. Financial management and performance are correlated to efficiency. Regulation must reinforce financial management and performance.

Venetian Bankers, 1496-1533: A Study in the Early Stages of Deposit Banking

T r aHE development of negotiable commercial paper in the seventeenth century marks the end of the primitive stage of deposit banking. Earlier bankers, unable to discount bills so as to spread the risk of their loans over a multitude of mercantile operations, were lured into overambitious ventures. They held a volume of deposits which enabled them, in ordinary times, to satisfy their depositors without keeping all their funds on hand in cash. But their efforts to draw profits from the money intrusted to them led to direct participation in commercial undertakings and loans to princes. Such firms as the Bardi of Florence or the Welsers of Augsburg touched dazzling profits, grew bolder, and, engaging their depositors' funds yet more deeply in government loans or speculations in commodities, ended in sensational failures. The well-known stories of such international bankers leave the impression that the great dangers of bank failure in that early stage of deposit banking came from the two sources named -commercial speculation and loans to princes. The international bankers supplied the needs of some centers; those of other cities were met by local banks. The latter were sometimes profit-seeking ventures of private bankers, sometimes public institutions subject to the city government. Although the municipal banks of Barcelona (I400) and Valencia (I407) have sometimes been confused with giro banks, on the assumption that they merely transferred payments on their books and did not make loans, this is a mistake. Giro banks did not come into existence until the late sixteenth century, at Venice in i584 and at Amsterdam in i609. It is true, however, that the chief function assumed later by the giro banks had been performed earlier by the public or private local banks. Through the transfers of deposits