Private Financial Institutions Research Articles

Financing Dilemma and Optimization Strategies of High-Tech Enterprises

In recent years, Chinas economic market has been developing rapidly and the number of enterprises has been increasing. However, the development of enterprises needs to rely on the support of capital, due to the high financing threshold of the capital market, ordinary commercial banks and private financial institutions can not fully meet the capital needs of all enterprises in the market. This has, to a certain extent, exacerbated the phenomenon of capital bottlenecks and stagnant development faced by Chinese enterprises, and many even went bankrupt due to poor capital turnover. This paper combines the views and conclusions put forward by a number of professional articles to analyze the status quo and predicament of the company's financing. It is found that high-tech enterprises have problems such as less application of financing methods, high financing costs and unreasonable financing structures. By optimizing the financing structure, improving the company's credit level to expand financing methods, and reducing financing costs, the government has introduced helping policies and other optimization strategies that can promote the healthy and stable development of high-tech enterprises.

THE POST COVID EFFECT OF CORPORATE GOVERNANCE ON FIRM PERFORMANCE: A STUDY ON PRIVATE COMMERCIAL BANK IN BANGLADESH

Due to extensive corporate disgraces and catastrophes around the globe, there has been a transformed attention in the influence of corporate governance (CG) and firm performance (FP). The mainstream of research concerning CG and its effect on FP has been assumed in developed markets and countries, mostly the US and UK, but somewhat little indication is provided in the developing countries like Bangladesh. This report has examined the impact of corporate governance mechanisms on firm performance from Bangladesh’s perspective. This study primarily employs agency theory that indicates that the firms with strong corporate governance outperform firms with weaker governance. We used Board Size, Board composition, board expertise and CEO chair duality as variables of CG and EPS, ROA, and ROE as indicators of FP. We collected information from the managers, senior managers, and CFOs of private financial institutions (commercial banks) in Bangladesh for 2022-2023 financial years. The results reveal that size, composition and expertise of board could extremely influence FP positively whereas CEO chair duality could influence negatively. The outcomes of the analyses advocated that firms that comply with good corporate governance practices can expect to achieve higher return on assets and firm performance. It implies that worthy corporate governance applies lead to reduce the various costs inside the organization. Hence, it is concluded that firms of the developing world can possibly enhance their performance by implementing decent corporate governance practices. Therefore, it is desired for firm to separate CEO chair duality to achieve better performance through direct management supervision in Bangladesh.

Socio-Cultural Transformation of Seaweed Farmers in Ghone Balano Village, Muna Regency

This study aims to determine the socio-cultural aspects of seaweed farmers in Ghone Balano Village, Muna Regency, Southeast Sulawesi. Seaweed farmers on the coast of Ghone Balano Village, Muna Regency, especially people who work as fishermen, are changing from traditional to more modern lifestyles with a focus on sea utilization or seaweed cultivation. This change can be seen in the production process of seaweed cultivation which is more characterized by household business activities dealing with marketing processes that have capitalistic value. However, this change was hampered by funding from government and private financial institutions. Although technology has begun to be applied in seaweed cultivation, it has not been optimal in increasing production because it is very dependent on the contributions of family members. As a result, slow capital formation and suboptimal use of technology hamper the progress of seaweed cultivation among these farmers.

Formation and development of the banking system in Galicia on the eve of joining the Austrian monarchy in the second half of the 18th century

The article analyzes the peculiarities of the formation and development of the banking system in Galicia on the eve of joining Austria in the second half of the 18th century. It is noted that the beginnings of banking in Galicia date back to the Middle Ages, in particular, during its stay as part of the Polish-Lithuanian Commonwealth. The banking system of Galicia as part of the Polish-Lithuanian Commonwealth was formed and functioned in accordance with the general trends in the development of banking in Europe.
 It has been established that the first banks in the current sense of the word began to appear in the Polish-Lithuanian Commonwealth with the development of urban centers and crafts. Banking houses became more and more important every decade. They granted loans to Polish kings and cities (it is known that they granted loans to the city of Lviv), acted as intermediaries in obtaining loans abroad, in in Viennese banks. Banking activity in Poland since the Middle Ages has been carried out by merchant families, the most prominent of which were Schwartz, Boner, Montelupi, Volchek, Jezyfowicz. Gradually, banking business in Galicia as part of the Polish-Lithuanian Commonwealth began to separate from the merchants. People began to appear who were called «bankers» and for whom credit business was the main occupation. The first banker in Poland who gave himself this name was Adam Zimman.
 It is shown that in the 18th century several banks were established in Galicia, which acted as commercial institutions and mostly served trade and industry. In Galicia, loans to private individuals in the XVII-XVIII centuries. provided by owners of large capital. It is known that in the middle of the XVII century. the Lviv burgher brotherhood at the Dormition Church helped its members with interest-free loans. At the same time, benevolent credit institutions began to appear, similar to the European Pious Banks (Montes pietatis). Pious banks were established by ecclesiastical organizations, often Jesuits, to provide loans to the population at comparatively lower interest rates than individual private individuals. These banks were part of the church’s fight against usury. They were usually supported by donations and contributions from church organizations and wealthy people. The money received from these sources was used to provide loans to the public against collateral. In many cases, pious banks refused to charge interest on loans and even forgave debts if the borrower was unable to repay the loan. Pious banks were popular in the Polish-Lithuanian Commonwealth, especially among the poorer population who could not afford the high interest rates charged by private financial institutions or individuals. However, over time, religious banks became less popular due to increased competition from private banks, as well as a decrease in the interest of church organizations in supporting them.
 It is argued that in Galicia as part of the Polish-Lithuanian Commonwealth in the 17th century. banking was born. The first bankers were rich burghers, such as the German Valerian Alembek, the Greek Konstantin Korniakt, or the Campian family. Prototypes of classical banks in the current sense of the word were credit societies or so-called pious banks that performed lending functions. They first specialized in mortgage loans and short-term loans. The Armenian Pious Bank became the first institution of such a plan in Lviv. Simultaneously with the development of trade and industry in the 18th century. banking institutions began to acquire more and more importance. They accepted deposits primarily from larger landowners and provided loans. Banking houses even provided loans to Polish kings and cities, including Lviv. Despite the intensification of banking activity in the 18th century, the banking system in Galicia as part of the Polish-Lithuanian Commonwealth was poorly developed, and legal regulation was mostly related to issues of interest on loans granted.

MONETARY POLICY OF WORLD BANKS DURING THE PANDEMIC

MONETARY POLICY OF WORLD BANKS DURING THE PANDEMIC

Regulation from the inside? Internal supervision in Dutch pension funds

Political economists have long acknowledged the importance of funded pensions acting as catalysts for processes of financialization. The transformation from rule- to risk-based pension fund governance is particularly important for pension financialization. Risk-based governance involves monitoring of internal decision-making procedures by new professionals rather than compliance with highly detailed legal restrictions. Scholars of financial regulation have termed this kind of supervision ‘regulation from the inside’. Being part of the organization they monitor, internal regulators hold fundamentally ambivalent positions. Existing studies emphasize the duality of internal regulators’ role perceptions as well as their attempts to span the boundaries between themselves and other organizational actors. In this paper, we extend scholarly insights on risk-based supervision of private (non-)financial institutions to pension institutions by focusing on a peculiar form of ‘regulation from the inside’: so-called internal supervisors in Dutch occupational pension funds. Internal supervisors are pension fund functionaries, responsible for evaluating the governing board's performance and holding the board accountable. We report findings from an original survey and interview study among internal supervisors. Contrary to the formal requirement of independence between governing board and internal supervision (a ‘checks and balances’ perspective), we find that internal supervisors often adopt a ‘fusion of powers’ approach that emphasizes collaboration with the governing board. We attribute this finding not only to internal supervision’s institutional design but also to the highly networked character of Dutch pension governance.

Financial Sector Troubles and Energy Markets

Literature shows the dynamics of energy markets impacting a variety of sectors. In response to the 2007/2008 financial crisis, the U.S. Treasury provided financial assistance (bailouts) to hundreds of public and private financial institutions under the Troubled Asset Recovery Program (TARP) and the Targeted Investment Program. Several studies suggest that bailouts alter the risk profile of the receiving companies. Since risk profiles are at the core of volatility transmissions between asset groups, in this study, we evaluate the volatility impacts of energy markets on these financial institutions before and after they received financial assistance. After controlling for systematic components, our findings show no volatility transmission before the financial intervention but suggest robust volatility transmission from oil and natural gas markets to the bailout banks post bailouts.

Using foreign experience in the use of artificial intelligence in the supervision of financial market participants in Russia.

Within the framework of this article, a comparative analysis of existing approaches to the use of artificial intelligence (AI) in the field of control and supervision of financial market participants in foreign countries and Russia is carried out. As part of the comparative analysis, basic problems were identified in the field of ensuring the accuracy of analytical tools used to detect facts of market manipulation and insider trading, theoretical and practical situations of using artificial intelligence in the supervisory activities of public and private financial institutions were considered, and additional compensatory legal measures were proposed to ensure effective integration of artificial intelligence and the use of AI for the purposes of financial supervision in Russia. The subject of the study is the features of legal relations that develop in the course of AI use in the framework of the supervision of financial activities. The object of the study are regulations, recommendations and other documents regulating the use of artificial intelligence for supervisory activities aimed at preventing manipulation of the financial market and insider trading, judicial practice, academic publications and analytical reports on the issues under study. The research methodology integrates a complex of modern philosophical, general scientific, special scientific methods of cognition, including dialectical, systemic, structural-functional, hermeneutical, comparative legal, formal legal (dogmatic), etc. Within the framework of this study, special emphasis is laid on the implementation of a comparative legal study of the areas of AI application in financial supervisory activities, the identification of common problems in the AI application by authorities and the development of common approaches. The measures proposed as a result of the study can be applied in the legislative and legal practice of relevant authorities implementing the integration of artificial intelligence into the sphere of public relations in Russia, including the field of control and supervision activities in the financial market.

Credit and collateral: How central banks can spur a greening of finance

Credit and collateral: How central banks can spur a greening of finance Central banks are increasingly called upon to take an active role in greening our financial system. Currently, the financial system is effectively funding temperature increases of over three degrees centigrade, so, Jakob Vestergaard, an Associate Professor at Roskilde University looks at how can central banks promote the greening of finance. It has been estimated that if global warming is to be limited to 1.5 degrees, global emissions will need to reach net- zero by 2050. A key objective of the Paris Agreement was to make financial flows consistent with a pathway towards low carbon emissions, but financial flows are not on that path at all. By deploying monetary policy to create relative incentives that favour ownership of ‘green' over ‘dirty' assets, allowing central banks to influence the investment decisions of private financial institutions, incentives towards green technology adoption and development of lower carbon-emission business models are being sought out. The greening of finance by the sector by governments and international organizations is an urgent necessity, which has only had modest progress so far.

Determinants and effects of the use of COVID-19 business support programs in Japan

Using a survey of and financial data for Japanese small- and medium-enterprises (SMEs), this paper examines the determinants of firms’ use of the business support programs provided by the Japanese government during the COVID-19 pandemic and their effect. With respect to the determinants, we obtain the following three findings: First, firms were more likely to have obtained subsidized loans, grants, or subsidies the more their sales had fallen during the pandemic, suggesting that funds flowed to firms that were adversely affected by the pandemic. Second, the likelihood that firms obtained funds was higher if their credit scores were lower or if they were classified as “zombies” and/or “low-return borrowers” before the pandemic, suggesting that the government programs also helped firms that had been under-performing before the pandemic. Third, firms were more likely to receive funds if they had a stronger relationship with their main bank before, suggesting that bank relationships play an important role in firms’ access to government programs. Regarding the causal effects, we obtain the following three findings: First, except for the subsidies for employment adjustment, the support programs increased the cash holdings of user firms. Second, subsidized loans from private financial institutions lowered exit rates, while none of the programs had a significantly positive effect on employment relative to non-users (or in absolute terms). Third, the credit scores and profit-to-sales ratio of firms that used the support programs decreased and the likelihood of such firms being a zombie and/or a low-return borrower increased. Overall, our findings provide a cautionary tale in that the business support programs produced mixed results in that they may have prevented business failures but have also helped to prop up firms that are not viable in the long run.

Credit access and agricultural technology adoption nexus in Ethiopia: A systematic review and meta-analysis

Access to credit is a good way to overcome some of the financial obstacles associated with technology adoption by the farmers. In Ethiopia the potential effect of credit on technology adoption is controversial. To determine the overall direction of effect a meta-analysis was done using a total 42 studies. The random effect model and meta regression analysis were applied to unveil the potential effect of credit access on farmers' technology adoption in Ethiopia. The result showed that in Ethiopia farmers adopted agricultural technologies such as chemical fertilizer, high yielding varieties, livestock technologies, soil and water conservation practices, beehive technologies, poultry technologies and ICT technologies. The random effect model output showed that access to credit increases agricultural technology adoption of farmers by 1.23unit, as compared to farmers who have no access to credit. The result from the meta regression output also depicted that family size; total livestock holding and total income were the main factors that determine heterogeneity in the effect of credit access on farmers' technology adoption among farmers. It was concluded that credit is essential to improve technology adoption; however, most farmers in Ethiopia have collateral problems to have access to credit for the adoption of technologies. It was recommended that a lot of improvement is needed from the government and private financial institutions to widen credit provision for the rural communities without collateral which could boost the financial power of the farmers so as to purchase technologies from the market. • In Ethiopia farmers adopted agricultural technologies such as chemical fertilizer, high yielding varieties, livestock technologies, soil and water conservation practices, beehive technologies, poultry technologies and ICTs technologies. • access to agricultural credit is a good way to overcome some of the financial obstacles associated with technology adoption. • The random effect model output showed that access to credit increases agricultural technology adoption of farmers by 1.23unit, as compared to farmers who have no access to credit. • The result from the Meta analysis depicted that family size; total livestock holding and total income were the main factors that determine credit access effect on the farmers' technology adoption.

Analyzing the Industrial Policy Formulation Practices in Adisabeba City Administration: Challenges and Prospects

Ethiopia's government has been attempting to promote economic growth and development by developing comprehensive national industrial policies and strategies. Accordingly, the purpose of the study is to analyze the industrial policy formulation practices in Adisabeba city administration: challenges and prospects. Under this applied research, a mixed research method has been employed to investigate the practices, challenge, and prospects of industrial policy formulation. The researcher has employed questionnaires, observations, and document review to collect data from key informants. A thematic content analysis has employed to systematically describe and categorize the meaning and content of qualitative data. Furthermore a descriptive method of analysis has been utilized for the quantitative aspect of the data. Employing such designs, the study shows that the city administration has good experience in adopting and industrial policies, and development strategies, pursuing a top-down policy-making approach under the ideological and policy direction of the central government. It has developed long experience of designing and executing development plans, master plans, and structural plans in general development policies and programmes. In addition, the city administration has experience of introducing economic and administrative reforms and development programs. Recently, the city administration has developed a lot of legal and intuitional procedures, regulations, and standards that help policy designing and enforcing concerning the city's development. The city administration has recorded rapid economic and intuitional development after the dawn fall of the Derg regime. Public institutions and bureaucratic apparatus that public policies can be developed have been instituted and expanded. All these recent intuitional and bureaucratic developments are the prospects for a better policy making process. However, lack of a comprehensive industrial strategy, corrupt practices and a rent-seeking conscience, poor oversight and accountability mechanisms, and weak institutional set-up to monitor and evaluate the policy process are some of the barriers still existed. Finally, the researcher advised the city administration to introduce institutional reform, an institutional framework that prevents the misconduct and rent-seeking behaviour, expansion of private financial institutions and highly professionalized bureaucratic system, a legal framework that prevents party political intervention in policy making process, mechanisms for good coordination and communication, strong policy control, and evaluation system, institutional capacity building, an institutional mechanism and to accommodate multiple values and interests in policy process. Keywords: industrial policy, formulation, implementation, monitoring, evaluation, thematic content analysis, a descriptive method of analysis, top-down policy-making approach DOI: 10.7176/JESD/13-21-02 Publication date: November 30 th 2022

Türkiye’de Katılım Bankacılık Sistemi ile İlgili Örnekler

In this study, it has been tried to reveal the success levels of participation banking systems within the general banking system by giving examples in terms of the size of the participation banking system within the general banking system and the performance of the participation banking systems in terms of factors such as service diversity, numerical proportionality and dividend distribution since the establishment of the participation banking systems. . The interest-free banking system, which is called the participation banking system, came out of the idea stage in the 1970s and started to be implemented in Egypt for the first time in 1976. Private Financial Institutions, which were established in Turkey in 1983 with the Statutory Decree (Executive Decree), and Participation Banks with their new names, have shown rapid acceleration on a global scale and especially in Turkey in the last twenty years. Participation banking system in Turkey has shown a serious development especially after 2001 and has become competitive with commercial banks. The fact that participation banking systems were subject to the Banks Law with the amendments made in 1999 and 2001 and that participation banking systems had similar rights in the legislation with commercial banks had a significant impact. Key Words: Private Financial Institutions, Participation Banking, Savings Deposit Insurance Fund

Factores del riesgo crediticio en una cooperativa de ahorro y credito, en la emergencia sanitaria de la COVID-19

The Financial system is a fundamental component of the national economy which is made up of public and private financial institutions, and its purpose is focused on financial intermediation. During the COVID-19 health emergency, the exposure of the financial system to the materialization of the credit risk was practically inevitable. In consequence, this work was developed to identify the credit risk factors of a credit union from segment 1 in the context of the pandemic. Being a qualitative, non-experimental, descriptive and transversal research, for the data collection, not only a structured survey was applied to the members but also an interview to the executives of the institution. In addition, through fieldwork, documentation was analyzed, the one which provided valuable information and was complemented with an exhaustive bibliographic review. The results reveal that internal and external credit risk factors have increased significantly. The internal ones are evidenced in: low operability of the banking core, deficiency in credit origination, portfolio concentration, limited recovery management and lack of knowledge about credit card policies. The external ones are determined by: the loss of employment of the members, suspension of school activities, mobility restrictions at national level, and an impending reduction of the family income. In this sense it is concluded that, the credit union under study did not take the necessary measures to mitigate in a timely manner the internal credit risk factors and reacted somewhat slowly to the external credit risk factors during the COVID-19 pandemic.

Post COVID-19 and the Acceptance of Financial Inclusion as a New Normal in Financial Transactions: Implications for Nigerian Accountants and Other Financial Service Providers

This study examined the preparedness of financial service providers to launch into the post COVID-19 era, using financial inclusion as a new normal in their clients’ financial needs. The study adopted the survey research design, using a judgmental sampling technique. The questionnaire was used as the method of collecting data from 102 respondents, drawn from accounting firms, insurance companies, financial houses and pension fund administrators in Nigeria. With the aid of descriptive and inferential statistics, the hypotheses were tested at 5% level of significance. The findings revealed that there is a significant relationship between the socio-economic development structure in Nigeria and the acceptance of financial inclusion as a new normal in financial transactions. It was recommended that the public and private financial institutions be ready to provide the enabling environment for financial technology to thrive as a driver for financial inclusion in the Nigerian developing economy. Keywords: COVID-19 pandemic, financial technology, financial inclusion, new normal, financial service providers

A choice experiment for testing the energy-efficiency mortgage as a tool for promoting sustainable finance

The challenges currently facing the EU in the energy sector include increasing import dependence, limited diversification, high and volatile energy prices, decarbonization, and slow progress in energy efficiency. EU energy policy has provided a wide range of measures to achieve an integrated energy market and sustainability of the building sector. Various incentives and financial instruments have been promoted and financed by governments to help consumers in energy retrofit processes. These include direct investments and fiscal, financial, and market instruments. Public measures have been widely studied but private initiatives have not. In this study, the energy-efficiency mortgage (EEM) is investigated as a credit scheme to attract young people to a real estate market for sustainable buildings, characterized by high sale prices. A choice experiment (CE) was modelled to investigate the preferences of potential young buyers of a new home. The results of this exploratory survey showed an appreciation of the purchase of new A-rated properties according to the Energy Performance Certificate, compared to those that need to be retrofitted or not retrofitted. Consumers like the option of a home energy efficiency renovation being fully managed by a third party (i.e., following the one-stop shop model). The key appeal of energy efficiency for consumers ranges from its ability to support better energy management, to better property value management. The EEM seems to be a promising tool to stimulate investments in energy efficiency and to promote the accessibility and affordability of housing in the sustainable housing market. The results of this study can help private financial institutions to propose appropriate credit plans, which limit the risk of default by the borrower. They can also help public incentive policymakers to propose complementary instruments to EEM.

Bir Faizsiz Bankacılık Türü Olarak Türkiye’de Katılım Bankacılık Sisteminin Dünü, Bugünü ve Yarını

In this study, the basic principles of participation banking system, purpose, property, historical and legal development out of the square of the reasons the contributions of the economic structure in Turkey, with the participation of other banks within the banking systems in today's current state of services and activities of the traditional banking system, accounting methods and the application in other ways, the comparison is made. The interest-free banking system, called the participation banking system, came out of the idea phase in the 1970s and was first implemented in Egypt in 1976. Founded in Turkey in 1983 by a Decree-Law (Decree-Law), Private Financial Institutions with their then name, Participation Banks with their new names have shown rapid momentum on a global scale and, especially in Turkey, over the past two decades. Keywords: Interest-Free Banking, Private Financial Institutions, Participation Banking

Comment on “Big Data in Asian Central Banks”

Comment on “Big Data in Asian Central Banks”

Operational Challenges in the Application of Human Resource Information Systems: An investigation in the select Brac Tanzania and CRDB Bank PLC Private Financial Institutions

AI Publications is an open access peer review international journal to publish the article in the field of Agriculture, Horticulture, Food science, Rural Development, Environment and Health Research, Chemistry, Mathematics,Physics.

BANCOS PÚBLICOS E COMPETIÇÃO BANCÁRIA

ABSTRACT How margins of private banks are affected by public banks’ conduct is a relevant question for both competition policy and credit market development in emerging economies. In this article, this question is addressed using an exogenous variation on the conduct of public banks between 2008 and 2015 when a pro-state government implemented a broad counter-cyclical policy in Brazil on major credit lines financed by the National Development Bank (BNDES). Given this event, we estimate the best reply function of private banks in a mixed oligopolistic market structure where private and public firms differ in their objective function. Using a detailed data set from a large BNDES credit line, in a dynamic panel data, results point to a significant but low reaction of private financial institutions. In the long run, a private bank’s margin is reduced by 0.03 p.p for 1 p.p lower final interest rate set by state-owned institutions. In this sense, the reduction in margins observed between 2008-2014 is more associated with a lower subsidized funding cost.