Credit Policy Research Articles

Optimizing supply chain model for two level credit policy with reverse logistics

Optimizing supply chain model for two level credit policy with reverse logistics

Main Trends in the Chinese Banks` Activities in Russia at the Beginning of the 14th Five-Year Plan

The article analyzes the Chinese banks` activities in Russia in the first years of the 14th Five-Year Plan (2021–2025). Four subsidiaries of state-owned commercial banks (ICBC, Bank of China, Agricultural Bank of China, China Construction Bank), and two representative offices of China Development Bank and Export-Import Bank of China respectively, operate in the Russian market. The banks provide a full range of banking products and services primarily to companies doing business with China, including lending, accounts opening and maintaining, foreign exchange and financial transactions, and letters of credit business. The author notes a significant increase of Chinese four subsidiaries` assets during 2022–2023. Regarding the liabilities, there was also a growth in the category "amounts due to credit organizations" (other banks` LORO accounts` transactions, interbank operations), which is associated with the necessity of an increased number of client payments due the increasing volume of Sino-Russo trade turnover and restrictions on settlements on USD and EUR. These trends have contributed to the growth of both the client base and profits of Chinese subsidiaries that charge commissions for account maintenance, settlements, and, moreover, had a positive impact on the increase in the volume of settlements in national currencies. The article analyzes the structure of settlements under foreign trade contracts and draws a conclusion about the growing predominance of national currencies. The author notes that in general, Chinese financial institutions pursue a cautious credit policy, focusing on maintaining stability and leveling various risks.

Impact of government support policies on firm performance of Vietnam’s small and medium tourism enterprises: The mediating role of competitive advantage

The government plays a decisive role in the general stability and sustainable development of the business community and tourism enterprises in particular. The recent Covid-19 pandemic has served as clear evidence of the government’s crucial support for tourism businesses. This study was conducted to explore and measure the impact of government support on the firm performance of small and medium tourism enterprises in Vietnam from the perspective of business leaders. Data were collected based on a survey of 798 leaders working in small and medium tourism enterprises. The results showed that government support before, during, and after the Covid-19 pandemic, through tax policies, credit policies, legal procedure support policies, and labor and social welfare policies, positively influenced firm performance through the mediating role of enhancing competitive advantage. However, this study found that digital transformation in small and medium-sized tourism enterprises had an insignificant impact on improving competitive advantage and firm performance. The results contribute to enriching the overall theory and provide policy and managerial implications for stakeholders in the future. AcknowledgmentThis research is funded by the Ministry of Education and Training of Vietnam with code B2023-DHH-02 under decision No. 2036/QD-BGDDT dated July 22, 2022. Furthermore, this study is the result of collaboration between a group of scientists from the Faculty of Law, Hue University, and School of Business and Economics, Duy Tan University. The authors would like to acknowledge the support and facilitation provided by both institutions for the publication of this article.

When neighbors become aggressors: the local tensions behind the expulsion of Jews from Eastern Thrace in 1934

Abstract This article examines the local context that led to the expulsion of Jews from Eastern Thrace in 1934. Going beyond the conventional state-centric narratives, it unearths the local socio-economic tensions that triggered the locals to target their Jewish neighbors. It highlights three major factors that fueled already-existing nationalist sentiments in the region: some Jewish merchants’ involvement in usury, Turkish–Muslim agricultural producers’ growing indebtedness due to the devastating impact of the Great Depression, and the government’s failure to support producers with appropriate credit policies. Faced with the danger of indebtedness and dispossession, the locals in this context deemed the small Jewish community as “the easy target,” scapegoating it for their ongoing problems amid Turkey’s nationalist political climate in the 1930s.

Optimum pricing decision for the retailer with warranty and price-dependent variable demand

Buying inventory on a credit basis is an effective pricing plan, and trade credit is a popular component of market transactions that increase demand. In a dynamic situation, most businesses offer different rewards and services to their consumers under certain terms and conditions during commodity sales. The accompanying companies provide a warranty period facility to increase consumer demand for products. The holding cost often increases over time. This study determines a production model wherein the production rate is proportionate to the price-warranty period based on the demand rate with time-dependent holding cost and trade credit policy. This work leads to three vital conventions: (I) the rate of product demand is considered to be price-warranty period dependent; (II) the non-linear function is considered for the rate of replacement failure, wherein the capital of the manufacturer depends on the warranty period; and (III) the rate of inflation is constant; moreover, the present time value of money also measured. This study aims to find the selling price, cycle time, and warranty period by using an algorithm to optimize the total profit function of the manufacturer. The results are validated by solving three numerical examples with their graphical representation based on different situations and the major parameters, and sensitivity analysis is analyzed with important decision-making implications.

Bank Specific Factors on the Financial Performance of Commercial Banks in Nepal

Purpose-This study examines the bank-specific factors and financial performance of commercial banks in Nepal. The study period of Nepalese banks’ performance during a period ranging from 2013 to 2023. Design/methodology/approach- Descriptive research design has been used in analyzing the performance of commercial banks. Banks' performance is measured in terms of ROA, ROE, and NIM. Profitability has been taken as the proxy of performance of banks in this study. Based on the findings of the study. Findings- Nepali commercial banks are performing moderately. They are not able to increase their performance level significantly. Their performance measured in terms of profitability is not very satisfactory. However, observing the significant decrease in level of non-performing assets, it is concluded that the internal management, credit policy, and business management aspects of the Nepalese commercial banks have been improving. On the other hand, Nepalese commercial banks are well-capitalized and do not have solvency problems. Because of maintaining an adequate capital adequacy ratio, they have the capacity to absorb unexpected losses and safeguard the depositors, investors and creditors. Original/Value- Few studies have addressed the interplay of microfinance on poverty alleviation in Nepali context.

Research on complex dynamic behavior of automakers based on complex system theory.

"Prevent minor issues before they become major problems, and prepare for the future." This study utilizes complex system theory to introduce a nonlinear dynamic system for examining the production and emission reduction strategies of new energy vehicle (NEV) and gasoline vehicle (GV) manufacturers under the dual credit (DC) policy over a long-term game process. By considering production delays, we analyze dynamic behaviors within a duopoly automotive system, including stable regions, bifurcation, chaotic attractors, and the Largest Lyapunov exponent (LLE). The results show that: (1) As production and carbon emission adjustment parameters increase, the decision-making system for both automakers can slip into disorder, posing a risk of disruption within the automotive industry. (2) In stable regions, GVs' carbon emission adjustments do not affect the production of either NEVs or GVs, while NEVs demonstrate greater flexibility in production adjustments compared to GVs. (3) The industry system will likely benefit from delay production decisions that could help stabilize the automobile market. The study provides theoretical support for the smooth transformation of old and new driving forces in the automobile industry.

Review Paper- A Study of TJSB Bank’s Term Loan Products Through V Loans

With the modest beginning in 1972 in the co- operative field, TJSB Sahakari Bank Ltd (TJSB) and has emerged as one of the leading multi-state scheduled co-operative Bank in the country. TJSB presently is catering to the needs of society through a close network of 64 Branches and 1 Extension Counters spread all over the city of Thane, Mumbai, Navi Mumbai, Nasik, Pune, Satara, Aurangabad, Kolhapur, Nagpur, Latur, Goa & Karnataka. All these Branches have made remarkable progress on all fronts in all these years. TJSB believes that "customer delight" is the ultimate goal and has a strong belief that Customers & all Stakeholders wholehearted support, absolute faith and their patronage has largely been responsible for its enviable growth. TJSB is committed to provide banking with speed, comfort and convenience. A large number of successful industrialists, traders and professionals have grown leaps & bound due to timely assistance and support of the Bank. TJSB has set before a Visionary Growth Plan focusing all business strategies solely on creation of Stakeholders value. . KEYWORDS Loan Products, Term Loans Banking, TJSB Bank, Industrial Finance, Cooperative Bank, Loan Security, Credit Risk, Loan & Advance, Credit Policies, Loans, Credit Score.

Does green credit policy matter for corporate sustainable innovation? Evidence from China

Green finance is a powerful motivator for promoting sustainable innovation and achieving green development. Under the dual background of building a green finance system and a market-oriented green technology innovation system, this study examines the impact of the Green Credit Guidelines on the sustainable innovation of enterprises both before and after implementation. By analyzing the propensity score matching difference-in-difference (PSM-DiD) analysis of Chinese listed enterprises, we have found that the support of relevant policies actually inhibits sustainable innovation and reduces the number of sustainability-related patents. This effect is more pronounced in green credit-restricted industries, state-owned enterprises (SOEs), and eastern regions. Ultimately, we have discovered that green utility model patents, in contrast to green invention patents, are the primary indicator of the detrimental impact of green credit policy on the performance of sustainable innovation. Overall, our study broadens the understanding of the external impacts of sustainable innovation within enterprises and provides valuable insights for corporate policy makers and management professionals.

Welfare and productivity of the Chinese regional economy under forced technology transfer in the post-intervention period of the Green Credit Policy

Welfare and productivity of the Chinese regional economy under forced technology transfer in the post-intervention period of the Green Credit Policy

Withdrawal notice to: “Third-party auditor liability risk and trade credit policies” [YBARE 56 (6) (2024) 101454

Withdrawal notice to: “Third-party auditor liability risk and trade credit policies” [YBARE 56 (6) (2024) 101454

The BRICS New Development Bank in the World Financial System

The article reveals the main stages of formation of New Development Bank (NDB), its strategic peculiarities and activity areas, opportunities and existing challenges to achieve the aims concerning promotion of interests of developing countries in the international fi nancial system, including reforms of international fi nancial institutions. The analysis shows that during the decade of its existence NDB turned into fully functional fi nancial institute with its own management bodies, a strong fi nancial profi le (credit rating AA+ from Standard and Poors). All this allows the bank to attract long-term fi nancing on global capital markets. The bank also has a wide range of borrowers in the fi eld of infrastructure projects and sustainable development. The core principle of NDB’s organizational and management system is the equal contribution in capital that means the equal voice rights of the founding countries plus "agreement by consensus". The analysis held by the authors demonstrates that this principle can cause both positive as well as negative consequences. For example, it can lead to disagreements between member countries concerning credit policy. The problem can be solved only via a trade-off . Being the new and special development bank, NDB at the same time has to consider economic reality he operates in. The research proves that today NDB is a part of international fi nancial community. The bank aims to cooperate with other MDBs. Nevertheless, NDB actively supports the question of reforming the existing world fi nancial institutions, including IMF, World Bank and other MDBs to promote the principles of equality and justice at the global level. Bank’s loyalty to its own strategies and principles allows to consider NDB as a fi nancial institute, that is alternate to other MDBs. Of course, now NDB cannot replace all other MDBs. Alternativeness here means a demonstration of possibility to achieve more equal and fair approach to international fi nancial relations. Such approach meets the interests of the majority of countries in the world. That’s why it’s evident that despite many challenges the role of NDB in world fi nancial system will increase.

Financial Development in Nigeria: A Causal Imperative for Economic Growth

This research investigated the causal relationship between financial development and economic growth in Nigeria from 1994 to 2023. Secondary data were obtained from the Central Bank of Nigeria's Statistical Bulletin and the World Bank's Financial Development Indicators Database. The unit root test was used to establish data stationarity, revealing conflicting results that necessitated the application of Auto Regressive Distributed Lag and the Granger Causality Test. The findings indicated that the private sector credit ratio to gross domestic product, the number of bank accounts per 100,000 persons, and the lending-deposit spread were significant predictors of Nigeria's gross domestic product. Furthermore, the applied indicators of financial development neither facilitate nor enhance economic growth, nor does economic growth assist or promote the utilized measures of financial development throughout the research period, as shown by the lack of causation in our findings. Consequently, the research indicated that of the variables used, just one – the asset quality ratio – did not substantially affect economic growth, and moreover, none of the four measures of financial development used fostered economic expansion. The study advocated for Nigerian banks to strengthen their credit policies and rigorously comply with them, as this would mitigate non- performing loans and subsequently improve asset quality ratios. Additionally, it emphasized the necessity for banks to enhance their financial inclusion initiatives, which would attract more deposits, thereby augmenting their credit capacity. An increase in credit provision would elevate operational efficiency and, consequently, bolster their contribution to the growth of the Nigerian economy.

Green credit policy and firm’s labor productivity: evidence from Chinese heavily-polluting enterprises

Taking the “Green Credit Guidelines” (also known as “Green Credit Policy”, GCP) in 2012 as a quasi-natural experiment, this study adopts the panel datasets between 2010 and 2019 for Chinese manufacturing firms listed publicly to examine the effects of GCP on the labor productivity of Chinese heavily-polluting companies. The findings indicate that: (1) Upon introducing GCP, it can improve labor productivity of Chinese heavily-polluting companies, a result of the promotion effect of GCP on commercial credit and technological innovation. (2) The implementation of GCP can enhance the commercial credit of Chinese heavily-polluting enterprises and relieve its financing constraints to some degree. (3) The implementation of GCP can further the innovation activities of Chinese heavily-polluting companies and realize the re-test of the “Porter effect”. (4) The heterogeneity test indicates that GCP exerts a pronounced promoting influence on state-owned and large heavily-polluting enterprises in eastern China. Those conclusions are still valid after robustness tests. This research offers empirical evidence and policy wisdom for promoting the green conversion of manufacturing enterprises.

The impact of green credit policy on corporate carbon emissions

Green credit policy, as an important financial tool, has significant implications for promoting a low-carbon economy and achieving emission reduction targets. This study explored the impact of China's green credit policy on corporate carbon emissions, using the implementation of the Green Credit Guidelines(GCG) as a natural experiment, and designed a difference-in-difference model. Evidence suggests that GCG can reduce the carbon emissions of green credit restricted enterprises by increasing financing constraints. Further research has found that the carbon reduction effect of policies is more significant for smaller enterprises with stricter total factor productivity and regional environmental regulations. These findings contribute to understanding the implementation effectiveness of GCG and provide theoretical and practical support for achieving the carbon peaking and carbon neutrality goals.

Green Credit Policies and Enterprise Technology Innovation

This paper makes use of the enactment of the Green Credit Guidelines as a quasi-natural experiment and builds a difference-in-differences (DID) model to identify the influence of green credit policies on technological innovation of heavy-polluting enterprises and its impact mechanism. Using the data of A-share listed enterprises from 2010 to 2019. The findings include that technological innovation of heavily polluted enterprises can be inhibited significantly by green credit policy.

An Applied Study of an Electric Vehicle Revenue Game Model Considering Graphene Battery Materials

ABSTRACTIn order to explain the development prospects and expected benefits of graphene battery material electric vehicles, we introduce electrical energy consumption and graphene battery material preference under the background of carbon trading and dual credit policy and use the Stackelberg game model to solve the optimal decision‐making of the supply chain nodes under different production conditions and then study the social welfare accordingly. The results show that the dual credit policy and carbon trading policy can effectively regulate the production activities of enterprises. Graphene material has a large impact on the market, but its performance is not impressive. The trend of social welfare suggests that graphene materials have great potential.

Can green credit policies reduce enterprise risk? Evidence from China

Environmental regulatory policies have changed the original living environment and development trajectory of enterprises. In the context of increasingly complex and variable macroeconomics, it is crucial to identify the impact of environmental regulatory policies on enterprise risk. The Green Credit Guidelines (GCGs) issued by the China Banking Regulatory Commission in 2012 are important practices for the country to introduce financial means into the environmental field. Using this policy as a quasinatural experiment and on the basis of data from Chinese A-share listed companies from 2008 to 2021, an empirical test was conducted to examine the impact of green credit policies on enterprise risk. The study found that green credit policies can significantly curb the risk of heavily polluting enterprises. The heterogeneity analysis found that the effect of green credit policies on curbing the risk of heavily polluting enterprises is more significant for state-owned enterprises and large-scale enterprises. Moderation effect analysis revealed that both external media attention and internal governance can enhance the inhibitory effect of green credit policies on the risk of heavily polluting enterprises. Mechanism analysis showed that green credit policies can reduce the risk of heavily polluting enterprises by promoting diversified operations, advancing enterprise transformation and upgrading, and reducing the mismatch between short-term loans and long-term investments. This research provides a theoretical basis and empirical evidence for further promoting the implementation of green credit policies and preventing and resolving enterprise risk.

Factors Behind Chinese Citizen Support to Implementation of Social Credit Policy

The social credit system was implemented in China by the Xi Jinping government officially in 2020. In implementing this policy, there are many arguments that argue this policy has the potential to cause human insecurity from the Chinese people because this policy is widely considered to be used as a tool to control people’s behaviour. Even so, this policy has high support from the Chinese people as evidenced by the high support for the implementation of the social credit system, and the high participation of the Chinese people in the trial of the social credit system in different provinces. Using disciplinary power theory, this article analyses what factors influence public support for the implementation of social credit policies by the Chinese government. This article also looks at how the Chinese government’s efforts in shaping obedience in Chinese society through the implementation of social credit policies. This article argues that the Chinese government succeeded in utilising appropriate means to make people support the implementation of the social credit policy even though the policy has the potential to cause human insecurity.

From voluntary to mandatory implementation: The impact of green credit policy on de-zombification in China

This study investigates the influence of the green credit policy on firm de-zombification in China using the listed firm samples. This paper presents a comparative analysis of the efficacy of two distinct policy implementation methods within the green credit policy framework. The results reveal that the implementation of the Green Credit Guidelines does not yield a statistically significant improvement in the de-zombification of green credit-restricted firms if they are implemented voluntarily. Only by including green credit performance in the assessment of bank officials, the de-zombification of such firms can be markedly promoted. Overall, the green credit policy acts as a catalyst for de-zombification by exerting dual effects: aggravating financial constraints and stimulating green innovation. The positive effect of green credit policy on de-zombification mainly comes from SOEs, firms with weak external supervision and firms located in areas with a lower degree of marketization. The results of the empirical study offer crucial insights for policymaking in China. It is imperative for the Chinese government to continue adhering to and further enhancing the green credit policy, with a particular focus on mandatory measures.