National Loan Research Articles

Державні банки в умовах воєнного стану: ключові проблеми та заходи реагування

Introduction. Ukrainian banking system in general and state-owned banks in particular have faced a set of unprecedented threats, risks and challenges associated with the outbreak of open armed aggression against Ukraine. The negative consequences of hostilities were, in particular, the loss of physical access of banks and customers to some branches and payment infrastructure, the growth of defaults and the suspension of lending. Problem Statement. Improving the stability and reliability of the banking system through the intervention of the central bank and creating favorable conditions for business. Purpose. The aim is to analyze the consequences of the armed conflict on the banking sector and substantiate the list of measures to reduce or neutralize this impact. Methods. General and special methods are used: analysis, synthesis, grouping, description, comparison, theoretical generalization and abstract-logical. Results. The actions of the Government and the National Bank in martial law were generally adequate, including measures to support the most vulnerable groups, reduce tax pressure on business, stimulate business activity by providing cheap loans under a number of government programs, comprehensive support for the banking system through the refinancing mechanism, mitigation of some regulatory requirements. The war made significant adjustments to the strategy of reforming state-owned banks. The structure of households\' funds also changed due to the sudden transformation of the pattern of their behavior. State-owned banks prefer to invest in treasury bills and NBU certificates rather than lending to customers. The main reason for the restrained growth of loan portfolios can be considered a decrease in demand for loans from reliable borrowers, and increasing credit risks. Conclusions. Banks with state capital have demonstrated their financial stability, have not experienced significant withdrawals from accounts, but have preferred to lend to large corporations or provide financial support to SMEs only through government programs of concessional loans. It is expedient to develop national loan restructuring programs together with the banking community, it is time to return to the idea of creating a full-fledged development bank in Ukraine on the basis of existing state-owned banks.

Health libraries innovation and the Gratisnet network

Gratisnet is a network of special libraries in Australia that commit to document exchange at no charge to each other, and without certainty of balance in supply. Over 250 special libraries in heath and allied fields are members of the network, many of which are too small to participate in the national Inter-library loan (ILL) network. Careful distribution of workloads helps to facilitate participation among large and small libraries. This co-operative model has subsequently been adopted by law, emergency services, transport and government library networks in Australia and New Zealand. This paper looks at the current state of play in Gratisnet and the cooperative factors that distinguish Gratisnet from the national ILL service.

Zastosuvannia krashchoho mizhnarodnoho dosvidu pid chas rozrobky systemy kredytnykh harantii dlia malykh ta serednikh ahropidpryiemstv Ukrainy

The focus of the article is the study of the best international experience in developing the structure and implementation of a loan guarantee system to reduce and distribute risks in financing small and medium-sized agricultural enterprises. Access to finance was identified as the main problem hindering the development of small and medium-sized agricultural enterprises. It has been substantiated that due to its competitive advantages, such as a large area of arable land, low production costs and the possibility of increasing the added value of products, the agricultural sector is a priority sector of the economy. The main obstacles and problems that hinder access to financing and the development of national small and medium agribusiness are identified. It has been substantiated that credit security programs play an important role in reducing restrictions on bank lending to small and medium-sized agricultural enterprises. The basic principles of the implementation of guarantee programs carried out with state participation are given. It has been proven that credit guarantees are one of the tools widely used to support the agricultural sector of the economy. In this case, the most expedient is the issuance of guarantees that provide a partial volume of lending, when the borrowers also bear some responsibility for the return of the funds received. Based on the consideration of international experience, it is concluded that loan guarantee systems are an effective tool that can alleviate the difficulties of entering the credit market for small and medium-sized agricultural enterprises. Key policy directions are proposed that allow correcting the situation with obtaining financing for small and medium-sized agricultural enterprises. The mechanism has been developed to provide state credit guarantees to small agricultural producers. The most effective implementation of the proposed mechanism can be achieved by building a national loan guarantee system with the formation of special institutions specializing in providing investment and innovation projects. The theoretical provisions formulated in the article can serve for further developments in the field of small business support by financial and credit institutions.

Una novella per l’anno della guerra: Alla salute! (1917) di Luigi Pirandello

This article presents the novella Alla salute! by Luigi Pirandello, which was written over a century ago but soon went missing. It had originally appeared in 1917 in the periodical «L’Idea Nazionale» but was never republished or referenced in bibliographies. Taking a patriotic and propagandizing stance toward the purchase of war bonds via the Prestito Nazionale [National Loan], the work presents characteristics that are not to be found in any of Pirandello’s other known war stories, thereby offering new material for understanding the author’s positions and his political views. The appendix contains an unabridged version of Alla salute!

The Viability of Tuition-Free Community College

Free higher education has become a major policy discussion of the past few years, one that is often debated or supported along partisan lines. Those supporting this policy initiative often point to the rising cost of a college education and the barrier it creates for underrepresented populations hoping to access higher education. Others point to a broken financial aid system that leaves more individuals financing their education through student loans, adding to a massive national loan debt now exceeding a trillion dollars. Various arguments for and against a free-tuition program within the American higher education system are addressed. While an argument can be made that all public American higher education should be tuition-free, limiting a large-scale federal program to the American community college has economic and political implications that could make the policy more feasible for a larger percentage of the American public.

Modeling Portfolio Credit Risk Taking into Account the Default Correlations Using a Copula Approach: Implementation to an Italian Loan Portfolio

This work aims to illustrate an advanced quantitative methodology for measuring the credit risk of a loan portfolio allowing for diversification effects. Also, this methodology can allocate the credit capital coherently to each counterparty in the portfolio. The analytical approach used for estimating the portfolio credit risk is a binomial type based on a Monte Carlo Simulation. This method takes into account the default correlations among the credit counterparties in the portfolio by following a copula approach and utilizing the asset return correlations of the obligors, as estimated by rigorous statistical methods. Moreover, this model considers the recovery rates as stochastic and dependent on each other and on the time until defaults. The methodology utilized for coherently allocating credit capital in the portfolio estimates the marginal contributions of each obligor to the overall risk of the loan portfolio in terms of Expected Shortfall (ES), a risk measure more coherent and conservative than the traditional measure of Value-at-Risk (VaR). Finally, this advanced analytical structure is implemented to a hypothetical, but typical, loan portfolio of an Italian commercial bank operating across the overall national country. The national loan portfolio is composed of 17 sub-portfolios, or geographic clusters of credit exposures to 10,500 non-financial firms (or corporates) belonging to each geo-cluster or sub-portfolio. The outcomes, in terms of correlations, portfolio risk measures and capital allocations obtained from this advanced analytical framework, are compared with the results found by implementing the Internal Rating Based (IRB) approach of Basel II and III. Our chief conclusion is that the IRB model is unable to capture the real credit risk of loan portfolios because it does not take into account the actual dependence structure among the default events, and between the recovery rates and the default events. We underline that the adoption of this regulatory model can produce a dangerous underestimation of the portfolio credit risk, especially when the economic uncertainty and the volatility of the financial markets increase.

Towards a European Legal Framework for Loan-Originating Funds

Over the last few years, the European AIF industry has witnessed a surge of interest in loan-originating funds. Both regulatory and economic aspects have been driving this trend. The tighter regulation and increased capital requirements imposed by Basel III on traditional lending banks has reduced the capacity for banks to issue loans. In particular, this holds true for issuing loans to SMEs. Unlike large corporates, SMEs do not have the possibility of a wide range of financing options, such as bonds and listed debt instruments. Given the dependence of European SMEs on bank financing, this created a massive gap in the financing market. Furthermore, institutional investors have been looking to diversity their assets in the search for yield in a low-interest rate environment. This is where European loan-originating fund managers have successfully been stepping in. The current main problem for loan-originating funds in the EEA is that Member States have implemented CRD IV in different ways that restricts loan-originating fund managers in granting loans to SMEs in various EEA Member States. Some Member States take a rather strict approach and consider the origination of loans as a pure banking activity (the so-called ‘banking monopoly’), whereas others also allow non-banking entities to grant loans in their domestic markets. This causes a fragmented landscape for loan-originating funds in which loan-originating fund managers are, in practice, forced to strategically focus themselves on a few (big) EEA domestic markets. As a response to loan-originating funds gaining traction with the EEA, a number of EEA Member States have opened up their ‘banking monopoly’ to boost lending to SMEs by loan-originating fund managers. Despite having the same objective, the regimes on the national level are not necessarily consistent and the current ‘goldplating’ of national AIFMD product laws makes the pan-EU origination of loans for loan-originating fund managers challenging. Furthermore, the regulatory strings attached to the ELTIFR, EuVECAR and EuSEFR have so far offered little help in remedying this fragmented landscape. In an attempt to investigate the current landscape, ESMA conducted research into national loan- originating fund product regimes and issued an opinion related to that. Although the mood is reasonably optimistic, no harmonized EU proposal is yet in place. This contribution seeks to contribute by developing pan-EU standards to facilitate the growth of lending to SMEs and soliciting capital from EEA investors by pan-European loan-originating funds. To that end, section 2 discusses the differences between 'loan funds', loan-originating funds' and 'loan-participating funds'. Section 3 focuses on the EU banking law restrictions, as implemented by Member States under their CRD IV national implementations, for loan-originating funds and section 4 on the differences between loan-originating funds versus banks in terms of investor versus deposit protection and systemic risk. Section 5 analyses the current fragmented European loan-originating fund framework. Section 6 proposes a coherent level-playing field European legal framework for loan-originating funds to create a viable EU market for such funds and section 7 concludes.

The Origin of the Polish National Loan Fund and Its Operation on the Polish Lands

The idea of establishing the Bank of Poland as the central bank of the Second Polish Republic and introducing a new currency appeared shortly after Poland regained its independence. At the beginning of 1919, in the economic circles it was believed that one of the initial steps taken by the government would be to establish a new issuing bank in place of the Polish National Loan Fund, which had appeared on the Polish territory in an emergency situation—during the First World War, and which, contrary to the original (both German and Polish) plans survived for 7 years and was transformed after the war into the first bank of issue in the now independent Polish State.
 The Polish National Loan Fund established by the Germans as an issuing institution by way of the ordinance of December 9, 1916 establishing the Polnische Landes Darlehnskasse was granted the privilege of issuing a new currency, that is a new monetary unit under the name marka polska. The German authorities were guided by various objectives when creating the new issuing institution—first of all, the aim was to limit the area of circulation of the German mark and to create an instrument that would draw in the occupied area of the Polish territory to finance the war, contrary to the assurances of the occupying authorities that the PKKP would be an institution supporting the economy and banking system of the country—the Kingdom of Poland, whose creation was envisaged after the end of World War I.

PersepSi Akuntansi Sektor Publik versus Akuntansi Pemerintahan

Perceptions that are disseminated in Indonesian government accounting teaching are government accounting substitutes for public sector accounting. The logic of teaching spread always begins from the discussion of clean government and the clean individual. The definition of money in clean government in Indonesia involves the relationship between the executive and the legislature, the consolidated funds and the national loan funds in preparing the appropriate budget plan (RAPBN / RAPBD). The problem is, in general, the public sector is described as a government institution or with a clearer sentence of the ruling government, state government, and national industry of government-owned enterprises, public legal entities, public corporations. But the word is deemed inadequate, so the phrase of the ruling government is still a controversial debate in the context of democracy which states that the people are the most powerful. The purpose of the article explains the correct understanding or perception of public sector accounting. Notwith standing the importance of understanding accounting techniques in governmental organizations, public sector accounting teachings are developed under different conditions.

Geneza Polskiej Krajowej Kasy Pożyczkowej i jej działalność na ziemiach polskich

The idea of setting up the Bank of Poland as the central bank of the Second Republic of Poland and introducing a new currency appeared just after Poland regained its independence. At the beginning of 1919, it was believed in economic circles that one of the first moves of the new government should be to set up a new issuing bank and replace, by this bank, the existing Polish National Loan Fund, which institution appeared on Polish lands in an extraordinary situation – during the First World War and which, despite the original intentions (both German and Polish), survived 7 years and evolved after the end of the war into the first issuing bank of an independent Polish state. The Polish National Loan Fund, created by the Germans as an issuing institution under the regulation of 9 December 1916 about the “Polnische Landes Darlehnskasse” was granted the privilege of emitting a new monetary unit under the name “Polish marka”. The German authorities had different goals in setting up a new issuing institution – first and foremost, it was about limiting the area of circulation of the German monetary unit called “marka” and creating an instrument that would draw in the occupied territory of Poland to finance the war, contrary to the assurances of the occupying authorities that the Polish National Loan Fund will be the institution supporting the economy and banking of the country – planned to be created after the end of World War I of the Kingdom of Poland.

Historycznoprawne aspekty działalności Oddziału Polskiej Krajowej Kasy Pożyczkowej w Bydgoszczy

The archival documents relating to the Department of Polish National Loan Fund in Bydgoszcz have survived in a rudimentary state. Press releases concerning its activity may indicate the main directions of its operation. Undoubtedly, the legal basis were generally binding normative acts. The results of this study allow to challenge thesis that titled Loan Found has supported the German interests. The PNLF Branch in Bydgoszcz has opened after the transfer of power in the city to Polish administration. I hope that tractu temporis will find the archival documents allowing for further research on the titled matter.

How Honest But Unfortunate Student Borrowers Became Scapegoats in Bankruptcy

A sample by Iuliano (2012) estimates 169,774 student debtors filed bankruptcy in 2007 but only 213 debtors (0.13%) also filed a costly Adversary Proceeding attempting to prove that repayment of educational debt would impose undue hardship. In 50% of these undue hardship cases student debtors obtained no relief. So within the sample over 99.9% of bankrupt student debtors in 2007 obtained no relief from educational debt. Due to structural labor-income and cost-of-living risk, which are allocated to student borrowers by private capital and labor-income markets, a high percentage of honest but unfortunate student borrowers are statistically certain to default in the national student loan pool. Sophisticated investors anticipate a loss of principal so credit markets fail to generate student loan pools in the absence of government subsidies. To provide for investment in human capital, Congress orders the Department of Education (ED) to make federal outlays as direct loans and default claim payments on insured student loans. But the unavoidable default loss on a national student loan pool means this federal policy is certain to generate a series of deficits at ED which accumulate as debt. If ED is under political pressure to reduce its debt position then it must make efforts to reduce default claim payments and to increase recoveries from defaulted student loans. To help ED reduce its debt position Congress and bankruptcy courts treat honest but unfortunate student borrowers, who are statistically certain to default, as scapegoats in bankruptcy.Federal policy creates winners and losers. Winners get federal cash flow subsidies. Losers are the honest but unfortunate student borrowers who are statistically certain to default, to pay federal financial penalties, and to be deprived of debt discharge in bankruptcy.

Workforce Shortage for General Surgeons: Results from the Society for Surgery of the Alimentary Track (SSAT) Surgeon Shortage Survey

BackgroundPopulation shifts among surgeons and the general populous will contribute to a predicted general surgeon shortage by 2020. The Public Policy and Advocacy Committee of the Society for Surgery of the Alimentary Tract designed and conducted a survey to assess perceptions and possible solutions from important stakeholders: practicing surgeons of the society, general surgery residents, and medical students. ResultsResponses from 1,208 participants: 658 practicing surgeons, 183 general surgery residents, and 367 medical students, were analyzed. There was a strong perception of a current and future surgeon shortage. The majority of surgeons (59.3 %) and residents (64.5 %) perceived a current general surgeon shortage, while 28.6 % of medical students responded the same. When asked of a perceived general surgery shortage in 20 years, 82.4, 81.4, and 51 % said “yes”, respectively. There were generational differences in responses to contributors and solutions for the impending shortage. Surgeons placed a high value on improving reimbursement, tort reform, and surgeon burnout, while residents held a strong interest in a national loan forgiveness program and improving lifestyle barriers. ConclusionOur survey offers insight into possible solutions to ward off a surgeon shortage that should be addressed with programmatic changes in residency training and by reform of the national health care system.

Priority and rescue financing in the Commonwealth Caribbean: lessons from the United States of America, United Kingdom and European Union

In investigating the operation of the rescue culture in the Commonwealth Caribbean as compared to the United Kingdom administration regime and Chapter 11 of the United States Bankruptcy Code, this paper laments that the Commonwealth Caribbean and the USA fail to consider key issues of post-petition priority for finance. It also delves into a critical, but overlooked, pillar of strong rescue frameworks: access to finance. Taking guidance from the European Union framework on state aid and the UK Funding for Lending and National Loan Guarantee, the author proposes a fair, transparent and efficient framework encompassing state involvement and state-driven private sector engagement.

Driven to Disaster: Car-Title Lending and Its Impact on Consumers

This report serves as an update to Car Title Lending: Driving Borrowers to Financial Ruin, a joint 2005 publication of the Consumer Federation of America (CFA) and the Center for Responsible Lending (CRL). In this paper, we describe the structure of car-title loans; provide an overview and estimate of the size of the national car-title loan market; discuss the typical borrower’s experience with car-title loans; and analyze newly acquired borrower-level data. We conclude with state and federal policy recommendations.

At a Crossroads: Lessons from the Home Affordable Modification Program (HAMP)

The successes, failures, and missed opportunities of the Home Affordable Modification Program (HAMP) provide a roadmap for national loan modification standards. HAMP has reached more homeowners, and successfully modified more home loans, than any program in history. Nevertheless, HAMP has been justly criticized for its limited reach relative to the scale of the foreclosure crisis, its lack of transparency, and the failure to provide for effective enforcement. This article draws on the available quantitative data and on the experiences of attorneys and housing counselors around the country who have spent the last three years assisting homeowners struggling to access HAMP. Although HAMP never covered the entire mortgage marketplace, HAMP’s failure to reach its intended scale has one root cause: massive servicer noncompliance. National loan modification standards should incorporate the successes of HAMP, which provided for increased access to sustainable modifications for many homeowners. But national loan modification standards must not fall into the same trap that HAMP did. Without strong mandates and real consequences for noncompliance, servicers will continue to implement modifications haphazardly or not at all, leaving the economy in a tailspin. Drawing on the lessons of HAMP, this report identifies five core principles for effective national loan modification standards: efficiency, affordability, accessibility, accountability, and enforceability. These core principles for national loan modification standards will protect all market participants.

Housing Default: Theory Works and So Does Policy

Using a national loan level data set we examine loan default as explained by local demographic characteristics and state level legislation that regulates foreclosure procedures and predatory lending through a hierarchical linear model. We observe significant variation in the default rate across states, with lower default levels in states with higher temporal and financial costs to lenders when controlling for loan and location conditions. The results are notable given that many of the observed loans were sold to investors in national and international markets. State level legislative influences provide a foundation for discussion of national level policy that further regulates predatory lending and financial institution foreclosure activities.

Residential mortgage default: Theory works and so does policy

Using a national loan level data set we examine loan default as explained by local demographic characteristics and state level legislation that regulates foreclosure procedures and predatory lending, using a hierarchical linear model. When controlling for loan and local conditions, we observe significant variation in the default rate across states, with lower default levels in states with higher temporal and financial costs to lenders. State level legislative influences provide a foundation for discussion of national level policy that further regulates predatory lending and financial institution foreclosure activities.

Fundamentals of Texas Multiple-Party Accounts

Multiple-party accounts, such as checking accounts, savings accounts, and certificates of deposit, are contractual arrangements for the deposit of money with financial institutions such as state or national banks, savings and loan associations, and credit unions. The disposition of the funds remaining in these accounts upon the death of one of the depositors depends on the type of account, the account contract, and the applicable state law.Multiple-party accounts are important non-probate transfer mechanisms because these accounts are used widely, easy to understand, and inexpensive to obtain. This article discusses the four commonly recognized types of multiple-party accounts: (1) the joint account, which may transfer ownership rights to the account’s balance to the surviving party; (2) the agency or convenience account, which does not transfer the account’s balance upon the death of one of the parties; (3) the payable on death account, which causes the balance to belong to the surviving pay on death payees upon the death of the depositors; and (4) the trust account, under which the beneficiaries receive the account’s balance upon outliving all trustees.

Hierarchical Modeling of Residential Default: Does State Level Foreclosure and Predatory Lending Legislation Limit 'Bad' Loans?

A national loan level data set, aggregated at the zip code is used to examine the elasticity of default relative to local demographic characteristics and state level legislation regulating foreclosure procedures and predatory lending. We also illustrate the merit of using a form of hierarchical linear modeling when comparing loan performance at the national level. We observe significant variation in the rate of foreclosure across states. Those states imposing higher temporal and financial costs on financial institutions exhibit lower default levels controlling for loan and local conditions. State level legislative influences provide a foundation for discussion of national level policy that further regulates predatory lending and financial institution foreclosure activities. This is one of many proposed directives for addressing the current mortgage challenges and future borrower lender interaction during potential default.