Types Of Borrowers Research Articles

Does social capital positively influence loan performance even during a crisis?

Theoretically, it is unclear whether group loans outperform individual loans in terms of delinquency, especially during a crisis. It is difficult to test the hypothesis due to differences in the types of borrowers of the group and individual loans and likely differences in their behavior between crises and normal times. We overcome the challenge by comparing simultaneous group and individual loans of the same individual before and during the Covid-19 crisis in India. We find that the delinquency rate of group loans is significantly lower. Further tests suggestively indicate that the outperformance is due to the “peer pressure” channel.

Consumer acceptance of different types of cultural borrowing and its internal mechanisms

In cross-regional cultural interactions, the frequent and controversial practice of cultural borrowing has attracted attention. According to the different relative statuses and comparative directions of the cultural subjects, cultural borrowing can be divided into strong-to-weak (weak-to-strong) cultural borrowing between subjects with strong (weak) status and subjects with weak (strong) status in cultural interactions, as well as equal cultural borrowing between subjects with equal status in cultural interactions. After the concept and types of cultural borrowing are defined, a multisituation experimental method is used to confirm the internal mechanisms and effect boundaries of consumers’ cultural borrowing acceptance. The results of five experiments based on over a thousand subjects indicate that different types of cultural borrowing (strong-to-weak, equal, weak-to-strong) arouse consumers’ perceived cultural threat, thereby reducing their acceptance of cultural borrowing to varying degrees. The influence of different types of cultural borrowing on perceived cultural threat is moderated by the degree of incongruent use and reality of the presentation of the borrowed culture; the influence of perceived cultural threat on cultural borrowing acceptance is moderated by the positioning of the borrowing subjects and the degree of identity in the relationship. By exploring cultural borrowing and consumer acceptance issues in the field of consumption through a series of experiments, this study effectively reveals the differentiated impacts and underlying mechanisms of different types of cultural borrowing on consumers’ acceptance responses.

ON THE ISSUE OF THE CIVIL CONTENT OF THE “OUTSOURCING” CATEGORY IN THE RUSSIAN CIVIL LAW SYSTEM

This publication is dedicated to the research of the role and definition of the legal content of outsourcing in the system of Russian civil law. Using such scientific methods of research as analysis, description, classification, intellectual modeling, extrapolation, methods of logical cognition and the formal legal method, the authors reveal the economic and organizational content of the category “outsourcing”, distinguish outsourcing from other methods of managing resources and resource potential, identify the legal nature of outsourcing relationships in based on private law regulators, and distinguish outsourcing from outstaffing as well. An economic definition of outsourcing is given as a method of managing and using resources predominantly by small and medium-sized participants in business turnover, associated with the involvement in the process of creating useful value of third-party capital, labor and intellectual resources, technologies, technological solutions and management models, as well as proven business designs with the aim of increasing your own productivity, reducing costs and reducing liability. It is noted that, from the point of view of Russian civil law, outsourcing can be defined as a variant of one of the types of obligations regulated by the Civil Code, as a mixed contract, as an unnamed contract. It is established that the legal nature of outsourcing follows from obligatory relations, which prevents the mixing into such relations of other types of contractual borrowing of resources (primarily outstaffing), where, in addition to the private law component, there is a public law fill. The final part contains a conclusion about the complementary nature of contractual outsourcing relationships for the domestic civil law system.

Плагиат, заимствование и законное использование: проблема разграничения понятий

The article notes that in the legislation of the Russian Federation the term “plagiarism” is used only in relation to the deliberate appropriation of authorship, which entails criminal liability, while in scientific publications this term is used in relation to a wider range of borrowings that are not criminal offenses. The authors conclude that the negative consequence of such a blurring of legal terminology is the complication of classification of those legal phenomena that are encountered in practice. It is argued that for the further development of legislation, judicial and business practice it is necessary to provide a unified understanding of such legal phenomena as plagiarism, on the one hand, and other cases of illegal borrowing, on the other hand, with the division of the latter into separate types of borrowing, taking into account the peculiarities of certain areas of activity, including the establishment of different criteria for recognizing the fact of illegal borrowing for scientific activity, for film production, fiction and other areas of use of the results of creative activity and certain types of works.

Recent Development in Credit Risk Measurement and Credit Risk Modelling with Respect to Different Types of Borrowers

Recent Development in Credit Risk Measurement and Credit Risk Modelling with Respect to Different Types of Borrowers

Politeness matters: The role of polite languages in online peer-to-peer lending

Given the limited information for assessing borrowers in online peer-to-peer (P2P) lending, the textual content of loan requests has been recognized as a crucial factor influencing lenders' lending decisions. However, whether politeness, an important but largely neglected linguistic element in loan requests, is related to lenders' decisions remains underexplored. Drawing from signaling theory, this paper seeks to answer two important questions: (1) Is the use of polite language in loan requests related to lenders' decisions? (2) If so, for which types of borrowers or loans is politeness more beneficial? We test our theoretical framework using a sample of 127,044 loan requests from Renrendai, a leading online P2P lending platform in China. Our findings reveal a significant and positive relation between the use of polite language and the likelihood of successful funding. This positive relation is stronger for borrowers with higher credit ratings, higher education levels, as well as for loan requests with lower information richness and higher certainty in language. Our findings suggest that politeness functions as a costless signal that complements costly signals, reducing information asymmetry in P2P lending. This paper bridges the gap between the literature on the role of politeness in individual decision making and information asymmetry in financial markets, providing new insights into the role of language use in P2P lending.

Credit supply shocks, home purchase volume, and borrowing behavior

AbstractWe exploit the 2007 private label securitization (PLS) freeze as a quasi‐experiment to study the impact of a negative credit supply shock on home purchases and borrowing behavior. Using a difference‐in‐differences estimator, we show that a negative supply shock to first‐lien mortgages has little impact on the volume of purchases financed with a mortgage, but significantly reduces the average first‐lien loan balance. Much of this reduction in loan balances is the result of increased bunching at the conforming loan limit that is achieved through a combination of greater second mortgage utilization and larger downpayments. Importantly, we find significant heterogeneity in the response to the mortgage supply shock across borrower characteristics and house price levels. Home purchase volume does decline after the shock for less creditworthy borrowers and in expensive locations. The reduction in first‐lien balances is fairly uniform across borrower types, however, the effect is slightly more acute in less expensive areas. Our results suggest that financial market frictions (e.g., downpayment constraints, imperfect credit) play an important role in determining how credit supply shocks impact housing purchases and borrowing behavior.

Banks, non-banks, and the incorporation of local information in CMBS loan pricing

Comparing banks to non-bank lenders, we investigate whether the geographical distance between lenders, borrowers, and their properties is reflected in the pricing of US mortgages that were included in US commercial mortgage-backed security (CMBS) pools during the 2000 to 2017 period. The difference in loan spreads when the bank-borrower distance increases from zero to the median of about 700 miles is 10 basis points, and this effect is more pronounced if the loan is collateralized by a riskier property. On the contrary, geographical distance does not seem to have any effect on the loan spread of mortgages granted by non-bank lenders. The difference in loan pricing across originator types (even after controlling for key mortgage and property characteristics) suggests that banks and non-bank lenders have different incentives, lending technologies, and/or different types of borrowers. Our results contribute to the emerging literature on non-bank lender behavior.

Securitization of subprime credit and the propagation of housing shocks

The 2007–2009 global financial crisis which originated in the U.S. subprime mortgage market and then spread to the whole financial system, drew attention to the impact that subprime lending and subprime mortgage securitization can have on the real economy. This paper explores the dynamics of the economy with a subprime mortgage market and the financial innovation in that sector when housing shocks arise. I develop a DSGE model with different types of borrowers and a shadow banking sector that is involved in subprime lending and securitization activities. The model shows that the process of securitizing risky credit amplifies the propagation of housing shocks in the economy through creating a link between the financial sector and the real sector.

The Paradox of the Payday Borrower: A Case Study of the Role of Planned Behavior in Borrowers’ Motivations and Experiences

This research used the theory of planned behavior as a framework to investigate the role of attitudes, behavioral control, norms, and previous behavior in payday loan borrowers’ difficulty or lack of difficulty in repaying loans. The data were collected from 138 respondents with payday loan experience via a questionnaire in a city in a western province in Canada as part of a campaign to change payday loan regulations. The research findings show that different approaches are necessary to address the needs of distinct types of payday borrowers, based on their repayment abilities and whether the loan improved their quality of life in the long term. Furthermore, we found, similar to previous literature, a group of payday borrowers who lack financial confidence. This sub-group is referred to as the “unsure” sub-group in our research and provides opportunities to improve the payday learning context. To accommodate the unsure group, payday lenders and conventional financial institutions can collaborate to offer innovative financial instruments, improve financial literacy through education, and provide better access to information about borrowers’ financial status. The confirmation of this unsure group also leads us to recommend further study to determine opportunities for payday borrowers to become better informed about their options, to increase financial confidence.

Teacher’s Use of Code-switching Types and Functions in Teaching TOEFL and IELTS Preparation Classes

In English courses, TOEFL and IELTS preparation classes are opened to accommodate the students’ need in learning English skills intensively and passing those standardized tests. As the EFL students still learn the target language, teachers often code-switch to give exposure and explanation. This research aims to study the use of code-switching in English courses. The research questions posed in this study are “what are the types of code-switching used by the teacher in TOEFL and IELTS preparation classes?” and “what are the functions of code-switching in TOEFL and IELTS preparation classes?” This study used descriptive statistics with two structured observation sheets as the instruments. The results showed that the teacher uses seven types of code-switching, intersentential, intrasentential, emblematic, lexical borrowing, integrated loanword, situational, and metaphorical switching in both observed TOEFL and IELTS classes. The researcher finds the six functions of code-switching: referential, directive, expressive, phatic, metalinguistic, and pedagogical functions.

Observed and expected interest rate pass-through under remarkably high market rates.

This paper investigates the pass-through from observed and expected policy interest rates to the remarkably high lending rates in the Brazilian economy, accounting for financial-institution specific characteristics, borrower types, asymmetric adjustment and persistence in loan rates. We use a unique and non-public dataset with expected variables identified by professional forecasters and apply a fixed-effects approach to alternative specifications as robustness checks. Financial institutions correctly forecast the next target level of the policy rate and anticipate adjustments in their loan rates. There is evidence of over-proportional and positively asymmetric pass-through to loans with higher interest rate margins, implying a positive correlation between degrees of pass-through and spreads across persistent lending rates. These findings contribute to explain why loan interest rates are so high in the Brazilian economy.

Credit card and payday loan borrowing: Evidence in the SCF 2010–2019

Unsecured borrowing plays an important role for consumers in smoothing consumption. Each year , almost 40 using a high-cost payday loan. This paper aims to explore the similarities and differences between both types of borrowers. Using the Survey of Consumer Finances (SCF) from 2010 to 2019, I document that: (1) credit card borrowers are middle-aged, upper-middle-class, with some college exposure, and financially literate; (2) payday loan borrowers are young, low-income and low-wealth, less educated, and less financially literate; and (3) payday loan borrowers lack the financial knowledge of inflation and risk diversification, but not of compound interest. • I document the similarities and differences between credit card and payday loan borrowers using the Survey of Consumer Finances. • Credit card borrowers are middle-aged, upper-middle-class, with some college exposure, and financially literate. • Payday loan borrowers are young, low-income and low-wealth, less educated, and less financially literate. • Although payday loan borrowers are less financially literate, they lack knowledge of inflation and risk diversification, but not of compound interest.

Demand Segmentation in the Federal Funds Market

This paper outlines a model of demand segmentation in the federal funds market with two types of borrowers - the "interest on reserves (IOR) arbitrage'' type and the "regulatory'' type - which have different reservation prices and cannot always be separated. When fed funds trade above IOR, the "regulatory" type is revealed and consequently pays an interest rate closer to its real reservation price, pushing the fed funds rate further up. When fed funds trade below IOR, a decrease in the fed funds rate encourages entry in the market for IOR arbitrage purposes thus counteracting the downward pressure on the fed funds rate. We use probit regression models and daily data for the period April 2018 to February 2020 to provide empirical support for this model. We find the following: 1) When fed funds trade above IOR, there is, on average, a 10 percentage points increase in the probability that the fed funds rate increases the following period. Furthermore, analysis using confidential bank-level data shows that this increase in the probability is higher for banks that report their liquidity profile daily and that were present all trading days during this period. 2) When the fed funds trade below IOR, the probability of a decrease in the fed funds rate decreases with the widening of the spread between the fed funds rate and IOR.

A Theoretical Evaluation of the Microfinance and its impact on Living Standards and Poverty Reduction in India

One definition of microfinance is "any activity that includes the provision of economic services like loans, saving, and coverage to low-wage earners who are slightly over the nationally defined shortfall line and to poor people who are below that shortage line with the aim of fostering public value." Microfinance can also be defined as "any activity that includes the provision of economic services like loans, saving, and coverage to low-wage earners who are slightly over the nationally defined short In this study, an attempt is made to conduct a theoretical evaluation of the impact that microfinance has had on living standards and the reduction of poverty in India. In order to produce an assessment of the influence of microfinance on living standards and the reduction of poverty in India, secondary reports are analysed and evaluated. Research in the natural world is qualitative and descriptive. According to a recently published study, microcredit and microfinance have gained widespread acceptance as a strategy for reducing poverty and increasing economic autonomy. Microfinance is a strategy that may be used to combat poverty, particularly in rural regions, which are home to the majority of the world's poorest people. Give individuals with low incomes the opportunity to start their own small businesses by extending them modest sums of financing at reasonable interest rates. Numerous studies show that despite their socioeconomic status, impoverished individuals have greater rates of loan payback than other types of borrowers.

Student Loans and Borrower Outcomes

This review surveys the literature on student lending, emphasizing empirical studies of default, credit outcomes, and earnings. Student loans exist to alleviate credit constraints and, in theory, may have different effects on outcomes through multiple channels. There is significant heterogeneity in outcomes across types of borrowers, with many adverse outcomes driven by a subset of primarily for-profit institutions. We conclude by exploring policy options such as student loan forgiveness, income-driven repayment, income-share agreements, and penalizing schools for adverse borrower outcomes. These policies lead to possible equity and efficiency trade-offs.

An Analysis of Translation Technique in Translating “Looking For Alaska” Novel Written by John Green

This research analyzes translation techniques used in translating Looking for Alaska novel written by John Green. A qualitative method is employed in discovering the results, where it is conducted by employing note-taking in order to collect the data. In analyzing the data, this research utilized document analysis for reviewing or evaluating the selected document, which in this case, the translated novel. After conducting this research, it is found that this novel is translated by using ten types of technique, namely adaptation, amplifiction, borrowing, calque, compensation description, estabilish equivalent, generalization, literal translation, and variation. Furthermore, the most used technique in translating the Looking for Alaska novel is literal translation with the discovered cases being 140 and since this technique is constantly used in translation, this number is only the representation of it because it is safe to assume that the translator usually resorted to this technique presumably due to it is being default way of translating a text.

Borrowing in the Novel “The Good Earth” and It’s Translation Into “Bumi Yang Subur”

The translation is done by transferring form of the first language to the form of the second language using of semantic structure. It must be transferred and held constant and the form may change. But translation activities do not only deal with transferring language from one language to another language, but also deal with the most important thing, such as; message and meaning from source language to target language. This study analyzed about types of borrowing are found in the translation of The Good Earth into Bumi yang Subur. The library research method and field research method used in this study. The description of the method can be seen in the following explanations. This study used library research. In this type of research, the location is very flexible. The research was done every where as long as the place supports the main facility needed such as books and computer. Types of borrowing found in the data source are pure borrowing, naturalized borrowing and cultural borrowing.

Modelling credit spreads on commercial mortgage loans

PurposeThis paper offers empirical evidence on factors influencing credit spreads on commercial mortgage loans. It extends existing work on the pricing of commercial mortgage loans. The authors examine the relative significance of a range of factors on loan pricing that are lender, asset and loan specific. The research explores and quantifies the sources of spread differentials among commercial mortgage loans. The paper contributes to a limited literature on the subject and serves the purpose of price discovery in commercial property lending. It offers a framework to compare actual pricing with fundamental-based estimates of loan spreads.Design/methodology/approachPanel analysis is deployed to examine the cross-section and time-series determinants of commercial mortgage loan margins and credit spreads. Using an exclusive database of loan portfolios in the United Kingdom (UK), the panel analysis enables the authors to analyse and quantify the impact of a number of theory-consistent and plausible factors determining the cost of lending to commercial real estate (CRE), including type and origin of lender, loan size, loan to value (LTV) and characteristics of asset financed – type, location and grade.FindingsSpreads on commercial mortgages and, therefore, loan pricing differ by the type of lender – bank, insurance company and debt fund. The property sector is another significant risk factor lenders price in. The LTV ratio has increased in importance since 2012. Prior to global financial crisis (GFC), lenders made little distinction in pricing different LTVs. Loans secured in secondary assets command a higher premium of 50–60bps. The analysis establishes an average premium of 35bps for loans advanced in regions compared to London. London is particularly seen a less risky region for loan advancements in the post-GFC era.Research limitations/implicationsThe study considers the role of lender characteristics and the changing regulation in the pricing of commercial mortgage loans and provides a framework to study spreads or pricing in this market that can include additional fundamental influences, such as terms of individual loans. The ultimate aim of such research is to assess whether mortgage loans are correctly priced and spotting risks emanating from actual loan spreads being lower than fundamental-based spreads pointing to tight pricing and over-lending.Practical implicationsThe analysis provides evidence on lender criteria that determine the cost of loans. The study confirms that differences in regulation affect loan pricing. The regulatory impact is most visible in the increased significance of LTV. In that sense, regulation has been effective in restricting lending at high LTV levels.Originality/valueThe paper exploits a database of a commercial mortgage loan portfolio to make loan pricing more transparent to the different types of lender and borrowers. Lenders can use the estimates to assess whether commercial loans are fairly priced. Borrowers better understand the relative significance of risk factors affecting margins and the price they are charged. The results of this paper are of value to regulators as they can assist to understand the determinants of loan margins and gauge conditions in the lending market.

Musical quotation in Richardson/Morlock’s Perruqueries (2013): humour as a vehicle for social commentary

Quotation, one of the most common types of borrowing, has a rich history in the western art music tradition. Composers often cite other musical works as a creative tool, resulting in intertextual relationships between two pieces. The six songs of Perruqueries (2013) for soprano, baritone, and piano, with lyrics by Bill Richardson (b. 1955) and music by Jocelyn Morlock (b. 1969), focus on wigs and people’s obsession with them. Richardson either draws from real or fictional characters to write witty lyrics about wigs, while Morlock cleverly quotes well-known music of the past, recasting famous themes in humorous contexts. Drawing on Metzer’s work on quotation as a cultural agent (2003), I argue that Richardson’s lyrics and Morlock’s setting invite the listener to engage with current discourses on the role of physical appearance in our society through humour.