Public Loan Research Articles

The Politics of Public Finance Al-Mawardi’s Perspective: Al-Ahkam As Sulthaniyah

This study aims to explore the concept of Al-Mawardi's public loan. This type of research is qualitative with an exploratory approach. Data collection uses the library method. Primary data was obtained from the book Al-Ahkam As Sulthaniyah and secondary data was obtained from several scientific journals and books related to this research. The analysis used is a qualitative analysis involving descriptive and interpretive data exploration. The results of the study show that the book Al-Ahkam As Sulthaniyah discusses state income, state expenditure, and the Baitul Mal. State revenue comes from zakat, ghanimah, and fai'. The state is only allowed to spend the treasures of the baitul mal as long as these expenditures are used for the public good. Al-Mawardi divided the two objectives of allocating Baitul Mal funds: first, for maslahah (benefit) and arfaq (provision of public facilities). Second, for the mandatory function. If the government has an obligation that is a mandatory function, while the funds in the baitul mal are empty, the government may make public loans because it is feared it will cause state chaos. And this policy was never carried out by the Prophet. If the leader dies, the next leader is responsible for repaying the loan.

Impact of Inflation Rate, Remittance Income, and Public Loan on Government Expenditure: Evidence Derived from the Nepalese Economy

This study examines the impact of inflation rate, remittance income, and public borrowing on the government's annual expenditure. This study is based on the descriptive and exploratory research design. It follows the positivist research philosophy and quantitative characteristics. It uses secondary data collected from various economic surveys in Nepal and reports from the World Bank. It covers 33 data points from 1990 to 2022. Simple statistical and econometric tools like descriptive statistics, robust regression analysis, Normality test, and confidence interval test are used in this study. The inflation rate, public borrowing, and remittance income are responsible for increasing Nepal's government expenditure. The inflation rate is not individually significant in determining the spending in Nepal. Remittance income has a considerable positive impact on total expenditure in Nepal. One unit increase in remittance income results in a 0.109648 unit increase in government expenditure in Nepal. Likewise, public borrowing is highly significant in explaining government expenditure. One unit increase in public borrowing results in a 1.145037 unit increase in government expenditure in Nepal. Nearly 73.69 percent variation in total government expenditure depends on Nepal's inflation rate, remittance income, and public borrowing. Policymakers in Nepal should focus on bolstering remittance inflows and implementing prudent public borrowing management strategies to foster sustainable economic growth while recognizing the limited influence of the inflation rate on government expenditure.

Mobilizing Credit for Clean Energy: De-Risking and Public Loan Provision Under Learning Spillovers

Mobilizing Credit for Clean Energy: De-Risking and Public Loan Provision Under Learning Spillovers

Pricing the net benefits of a public loan guarantee scheme in a developing market

Turkish credit markets experienced a liquidity crunch following the Brexit referendum in June, the attempted coup in July, and the US election in November of 2016. The government announced a 12.5-fold increase in the Treasury support for the Credit Guarantee Fund to alleviate the credit squeeze. We investigate whether investor reactions to the announcement of the increase in Treasury support in KGF are in line with the stated aim of policymakers. Firms listed on Borsa İstanbul averaged 5.72 percent cumulative abnormal returns (CARs) in the 9-day window around the announcement. Investors anticipated the benefits from public guarantees would outweigh the costs. The positive and significant CARs suggest that the information released in the announcement, in line with the program aims, positively affected investor expectations.

The hazards of delivering a public loan guarantee scheme: An analysis of borrower and lender characteristics

Using data between 2009 and 2020, we provide a detailed description of the borrowers within the Enterprise Finance Guarantee (EFG) loan portfolio, analyse time to default and how it differs across lender types. For limited companies, we match additional financial and non-financial data from public and proprietary databases and profile the characteristics of EFG companies within the population of limited companies. Employing hazard models we find loans granted to unincorporated businesses by the medium-sized financial institutions are associated with a much lower hazard than those provided by smaller local lending institutions and not-for-profit agencies. Moreover, we find some evidence that loans to limited companies, issued by the big UK banking groups, have a significantly lower default than those from medium-sized financial institutions. Large banks screen out high-risk firms. We argue that smaller lenders are able to price the risks rejected by the larger banks, using a wider range of credit information. JEL codes: G01, G21, L52, D25

THE IMPACT OF COVID-19 PANDEMIC ON BANKS IN INDONESIA: COMPARATIVE ANALYSIS

This study aimed to determine the conditions of the digital transaction sector, financial system stability, financial inclusion, and bank health ratios before and after the COVID-19 pandemic and their impact on digital transactions, financial system stability, financial inclusion, and banking health ratios in Indonesia. The research method used is the descriptive comparative analysis method. The analysis used in this study is the average difference test analysis using the paired samples t-test. The results of the study show that digital transactions during the COVID-19 pandemic did not have a significant impact on reducing electronic money. The COVID-19 pandemic significantly impacted lowering average inflation and interest rates (BI7DRR). Furthermore, the COVID-19 pandemic substantially affected reducing average public savings. However, it did not considerably influence the decrease in the average public loan. The COVID-19 pandemic has significantly reduced the average bank soundness ratio as measured by Return on Assets (ROA) and Loan to Deposit Ratio (LDR).

Effect of Gender on Access to Loans in Malawi

Access to loan is vital for households to supplement their current flow of income as they strive to meet their consumption and investment expenditure needs. The purpose of this study was to determine the effect of gender on access to loans and amount of money that is borrowed. This is a quantitative research that used secondary cross section data collected from all parts of the country by the Malawi National Statistical Office (NSO) called The Fifth Integrated Household Survey (IHS 5) data. This is cross section data that was collect in the period from 2019 to 2020. Data was analysed quantitatively by using descriptive statistics and econometric models. Probit model was used to assess the effect of gender on access to credit and a multiple regression was used to determine the effect of gender on amount of money a household borrowed. This study found that Malawians borrow money mainly for consumption. On access to loans, results show that, being female increases the probability of accessing loans but reduces the amount of borrowed money. Education was found to have positive effect on both access to credit and amount of credit. To increase the amount of money that women borrow, the study recommends that public loan programs like National Economic Empowerment Fund (NEEF) must put in place deliberate mechanisms aimed at increasing the amount of money they lend to women. On education, we recommend compulsory primary school education, Business Studies in secondary school education and Entrepreneurship module in Colleges.

Mobilizing Credit for Clean Energy: De-Risking and Public Loan Provision Under Learning Spillovers

Mobilizing Credit for Clean Energy: De-Risking and Public Loan Provision Under Learning Spillovers

Firm-level heterogeneity in the impact of the COVID-19 pandemic

ABSTRACT This paper explores the heterogeneity across firms in the impact of and response to the COVID-19 shock. It relies on a survey conducted by Banco de España to 4,004 companies in November 2020 matched to very rich balance-sheet information on firm characteristics. According to our results, COVID-19 had a higher impact on the most vulnerable firms (small, young and less productive), and they also found more useful government policy support. Nonetheless, there were some exceptions: public loan guarantees had more difficulties reaching firms with less pre-existing debt; and furlough schemes were not able to fully protect jobs in firms with a higher share of temporary workers, which find firing more useful. While uncertainty is the key factor hindering firms’ activity, we use the announcement of the Pfizer vaccine on November 9th 2020 as a natural experiment to provide evidence that the vaccine announcement improved significantly firms’ subjective recovery expectations. This points at the importance of the communication of medical advances to guide firms’ expectations in pandemic episodes.

공공대출보상제도의 논의를 위한 해외사례 연구

This study aims to present problems in introducing the PLR in Korea after comparing and analyzing overseas cases. To this end, we analyzed the literature of 34 countries that are implementing the public loan compensation system and the cases of Taiwan, which is the first demonstration in Asia. The items to be considered for the implementation and operation of the PLR were the ground law, compensation data, compensation target, operating agency, and compensation. The following three implications are presented through the analysis of overseas cases. First, the ground law of the PLR should be discussed according to the situation of each country. First, The ground law of the PLR should be discussed according to the situation of each country. Second, when implementing the PLR, the items to be considered should be the eligible recipients, eligible material, method of calculation, and managed by. Third, the most problematic thing when introducing the system in Korea is the solution of differences between stakeholders. For a healthy publishing ecosystem of authors, publishers and libraries, which are interested parties, it is necessary to organize a social consultative body to discuss and coordinate.

The Impact of Public Loan Guarantees on Banks’Risk Taking and Firms’ Growth: Evidence from France

Ce papier analyse l’efficacité des dispositifs de garantie de Bpifrance, qui constituent le principal dispositif public de garantie de crédit bancaire en France. Nous montrons d’abord que les banques commerciales mobilisent davantage les garanties publiques pour financer des projets relativement risqués. En mobilisant des techniques d’appariement sur score de propension et des estimateurs en double-différence, nous montrons que les garanties publiques ont un impact positif sur la survie, l’investissement, le chiffre d’affaires et l’emploi des entreprises. Nous estimons que le montant de dotation publique immobilisé pour chaque emploi additionnel est compris entre 2800 et 3 500 euros selon le fonds de garantie. Classification JEL : G21, G28, H81, L25, L26

Italian Banks, the Legacy of the Global Financial Crisis and the COVID-19 Pandemic: So Far so Good

We discuss whether and to what extent Italian banks will be able to support the recovery after the COVID-19 pandemic. The answer crucially depends on how the legacy of the Great Financial Crisis is evaluated. Moving from the hypothesis that the problems must be examined in the context of the entire euro area and with a medium-term perspective, we show that Italian banks are on a path of gradual recovery and that during the first year of the COVID-19 pandemic, they have also met the corporate demand for credit (with the support of public loan guarantee programs). We conclude that, so far, not only have banks not been part of the problem but, instead, they have played a crucial role in sustaining the Italian economy during the latest recession. Early evidence suggests that the pandemic crisis has also incentivized businesses in some sectors to adopt innovations that were largely under-utilized prior to the crisis, offering hope for a new phase of economic dynamism once economies reopen. However, the ability of national economies to capture these improvements depends on country specific factors, in particular, on the banks’ ability to shift the allocation of credit to the emerging and most productive companies. In this connection, we conclude that the ability of Italian banks to achieve an efficient allocation of credit is, to say the least, controversial.

The Italian Start Up Act: a microeconometric program evaluation

This paper analyzes the impact of the Italian Start Up Act which entered into force in October 2012. This public policy provides a unique bundle of benefits, such as tax incentives, public loan guarantees, and a more flexible labor law, for firms registered as “innovative startups” in Italy. This legislation has been implemented by the Italian government to increase innovativeness of small and young enterprises by facilitating access to (external) capital and (high-skilled) labor. Consequently, the goal of our evaluation is to assess the impact of the policy on equity, debt, and employment. Using various conditional difference-in-difference models, we find that the Italian innovative startup policy has met its primary objectives. The econometric results strongly suggest that Italian innovative startups are more successful in obtaining equity and debt capital and they also hire more employees because of the program participation.

Manajemen Layanan Perpustakaan terhadap Loyalitas Mahasiswa pada Masa Pandemi Covid 19

During the covid-19 pandemic the library stopped all services that were in direct contact with users, so that the library was required to carry out new innovation services so that the information needs of the users were still met. Services that can be done are through online services where users can take advantage of the library's digital collection via the internet. The research on the theme of the effect of library service management on student loyalty was conducted to test the impact of library service management variables (X) on student loyalty (Y). The X variable is developed in 3 dimensions, namely the dimensions of library public policy (X1), loan transactions (X2) and online services (X3). Collecting data through distributing questionnaires to students at 3 private universities in Yogyakarta with the category A accredited university which has a student population of more than 25.000 people. Sampling was not using random sampling but by means of convenience sampling. Analyzing data through descriptive statistical testing and multiple regression. The results of multiple regression analysis partially and simultaneously library service management variables as well as the 3 dimensions X1, X2 and X3 affect student loyalty and from the correlation analysis of the dimensions contained in library service management variables to student loyalty variables it is proven that all hypotheses can be accepted. Conclusion: library service management during the pandemic which is responded to by students is a good (positive) phenomenon, so the respondent's appreciation of student loyalty is also good (superior).

The Impact of Public Loan Guarantees on Banks’ Risk Taking and Firms’ Growth: Evidence from France

This paper investigates the economic impact and cost-efficiency of the loan guarantee programs of Bpifrance, which form the main public loan guarantee scheme in France. We first document that commercial banks aremore likely to use public loan guarantees for investment projects which appear relatively risky ex ante. Second, using propensity scorematching techniques and difference-in-difference estimators, we showthat loan guarantees have a positive impact on firm survival, sales, investment and employment. We compute the gross amount of public endowment needed to create an additional job, which ranges from € 2,800 to € 3,500 depending on the guarantee target.

Deep Learning Anti-Fraud Model for Internet Loan: Where We Are Going

Recently, Internet finance is increasingly popular. However, bad debt has become a serious threat to Internet financial companies. The fraud detection models commonly used in conventional financial companies is logistic regression. Although it is interpretable, the accuracy of the logistic regression still remains to be improved. This paper takes a large public loan dataset, e.g. Lending club, for example, to explore the potential of applying deep neural network for fraud detection. We first fill the missing values by a random forest. Then, an XGBoost algorithm is employed to select the most discriminate features. After that, we propose to use a synthetic minority oversampling technique to deal with the sample imbalance. With the preprocessed data, we design a deep neural network for Internet loan fraud detection. Extensive experiments have been conducted to demonstrate the outperformance of the deep neural network compared with the commonly-used models. Such a simple yet effective model may brighten the application of deep learning in anti-fraud for Internet loans, which would benefit the financial engineers in small and medium Internet financial companies.

Expediting the delivery of content to library users: When to buy versus when to borrow

If an item is not readily available in an academic library’s collection, is it quicker to buy it or does is make better sense to borrow it? At a public, four-year institution, acquisitions and interlibrary loan (ILL) are exploring a new relationship to improve the users’ experience. The question is determining what triggers the decision to borrow versus buy an item. The exploration is born of the institution’s ongoing migration from a traditional to a demand driven based collections strategy. This article will elucidate how acquisitions and ILL can work together to effectively deliver what users need when they need it.

DOES INITIAL ACCESS TO BANK LOANS PREDICT START‐UPS' FUTURE DEFAULT PROBABILITY? EVIDENCE FROM ITALY

In Europe, several countries have established public loan guarantee funds throughout direct/indirect loan programs to facilitate the access of SMEs and start‐ups to bank credit. This paper investigates whether start‐ups' level of access to bank loans during the early stage represents an imprinting factor with effects on the likelihood of survival once the firm reaches maturity. We rely on a firm‐level longitudinal data set of 49,111 Italian startups born from 2003 to 2005. Implementing a 2SLS regression analysis we show that the initial level of start‐up bank debt negatively influences the probability of default controlling for firm characteristics and performance. (JEL G21, M20, H32)

Odgovornost države za ekonomske aktivnosti - primer upisa nesavesnog javnog duga

The subject matter of analysis in this paper are the essential features of an odious public debt (loan) in contemporary monetary law. In this context, the first part of the paper focuses on the concept and basic functions of the public debt in the theory and practice of monetary management, where the author discusses the basic principles of public borrowing that ensure timely servicing of overdue monetary obligations and support fiscal responsibility and credibility of public loan subscribers. The second part of the paper deals with the concept of an odious public debt emission and its correlation with the state immunity for undertaking economic activities, which are indisputable in the field of fiscal and financial sovereignty but it raises the issue of responsibility of the public monetary agents (central banks and public debt management agencies) for the harm they may cause to others in their work. In particular, the analysis focuses on the need for a more extensive use of the doctrine of odious public debt as a means of protecting the creditors from subscribing to the so-called "odious" bonds of dictatorial state regimes. The author also points to the need for establishing an international judicial forum which would have the authority to prevent the effects of an odious public debt in a timely manner by ensuring an early detection of mala fides by the debtor state or extend the necessary period for examining such intentions prior to the conclusion of the contract. In the author's view, this is a vital condition for the effective operation of credible public debt management policies.

The Italian Startup Act: A Microeconometric Program Evaluation

This paper analyses the impact of the Italian Startup Act which entered into force in December 2012. This public policy provides a unique bundle of benefits, such as tax incentives, public loan guarantees, and a more flexible labor law, for firms registered as “innovative startups” in Italy. This legislation has been implemented by the Italian government to increase innovativeness of small and young enterprises by facilitating improved access to (external) capital and (highskilled) labor. Consequently, the goal of our evaluation is to assess the impact of the policy on equity, debt and employment. Using various conditional difference-in-difference models, we find that the Italian startup policy has met its primary objectives. The econometric results strongly suggest that firms operating under this program are more successful in obtaining equity and debt capital and they also hire more employees because of the program participation.