Use Of Guarantees Research Articles

Keabsahan Akad Perbankan Syariah Dengan Pengikatan Jaminan Hak Tanggungan

This research examines the problems of guaranteeing Mortgage Rights in Islamic Financing. This type of research is normative legal research, examined using a statutory approach, conceptually analyzed qualitatively. The results of the analysis carried out conclude that the validity of the Islamic Banking Contract with the Binding of Mortgage Guarantees based on Surah Al-Baqarah verse 283 shows that material guarantees are permitted. Whereas legally stated in the Fatwa of the Indonesian National Sharia Council number 25/DSN/MUI/III/2002 on al-Rahn which provides an explanation regarding the ijma' of the scholars that al-rahn contracts or debt guarantees are broadly permissible. The use of guarantees in Islamic banking contracts prioritizes the application of the ijtihad method but does not intend to override the original law but is based more on the principle of using the istihsan method. The virtue of the istihsan method is to realize the benefit and avoid the dangers. Mortgage has executive power, this power is equated with a court decision or known as the principle of parate execution, this is what makes the istihsan method more often used. When viewed further, the imposition of mortgage rights on Islamic banking contracts basically should not be equated with the imposition of mortgage rights on conventional banking, both should have different principles. If the installation of the Mortgage is to guarantee mudharib trust, then the Mortgage is declared valid. with the consequence that in the event of a default it is not immediately auctioned off, in other words the principle of parate execution is not necessarily carried out. Then the Mortgage if used as a guarantor for the return of capital of the shahibul maal becomes invalid and null and void by law. These two aspets can determine the validity of the sharia banking contract with the binding of the Mortgage guarantee.

Utilization of Customs Regulations Related to Import Export Insurance in Supporting the Export Process

The impact of the ongoing COVID-19 pandemic requires a precise strategy to encourage export activities. This community service activity aims to provide education for practitioners and academics in the insurance sector in understanding more deeply the use of customs regulations related to import export insurance in order to strengthen the important role of trade insurance and marine cargo in supporting the export process. There are various customs regulations that can be used by businesses related to insurance, namely: First, the use of domestic insurance will reduce the payment of import duties and taxes for imports because they are not included in the import value. Second, the use of guarantees from insurance companies (customs bonds) as a solution for paying state levies for companies that are unable to pay off these levies immediately and in utilizing customs facilities aimed at boosting national export performance. Among the customs facilities that can be utilized are bonded zone and Import Facility for Export Purpose (KITE). Both facilities are intended to provide fiscal and procedural facilities to producer exporters. The use of customs facilities requires guarantees for import duties and import taxes. One type of guarantee is a guarantee from an insurance company (customs bond). Based on this activity, participants can take advantage of customs regulations related to import-export insurance which ultimately aims to encourage export activities, especially during this pandemic.

Concept and aspects of social protection of police officers in Ukraine

The article examines the problems of social protection of employees of the National Police of Ukraine. It is argued that the social protection of police officers is one of the types of social protection of the population, which has a certain specific, which is caused by performing their professional activities associated with increased risk and danger. An etymological study of the concept of « social protection » was carried out. Different approaches to defining social protection were analyzed. The concept of social protection in a broad and narrow sense was considered. The Law of Ukraine « On the National Police » declares that a police officer fully enjoys the guarantees of social and legal protection provided for by the mentioned Law and other legislative acts. The Law of Ukraine « On the National Police » uses the term social protection, the meaning of which is broader than the meaning of the term social security. The Law of Ukraine « On the National Police » provides the following guarantees of social protection of a police officer: provision of appropriate conditions for the performance of duties assigned to him; prompt and full payment of financial support and other compensatory payments in accordance with the law and other regulatory legal acts of Ukraine; full use of guarantees of social and legal protection; during the performance of police powers, he uses all types of public transport for free. However, chapter 9 « Social protection of police officers » is devoted to a wider range of social protection guarantees. The guarantees of social protection of police officers were studied, which included: material support, housing support, medical support and professional support.

Accelerating the speed and scale of climate finance in the post-pandemic context

ABSTRACT In this paper, we examine how to trigger a wave of low-carbon investments compatible with the well-below 2°C target of the Paris Agreement in the current post-pandemic context of increasing private and public debt. We argue that one major obstacle to catalysing global excess savings at sufficient scale and speed on climate mitigation, and to ‘greening’ economic recovery packages, lies in the up-front risks of low-carbon investment. We then explain why public guarantees should be the preferred risk-sharing instrument to overcome that obstacle. We outline the basic principles of a multilateral sovereign guarantee mechanism able to maximize the leverage effect of public funds and massively redirect global savings towards low-carbon investments, with the double benefit of bridging the infrastructure investment gap in developing countries and reducing tension between developed and developing countries around accelerated funding for low-carbon transitions. We carry out numerical simulations demonstrating how the use of guarantees from AAA-rated sovereigns, calibrated on an agreed-upon ‘social value of carbon’, is compatible with public-budget constraints of developed countries. In summary, the use of such guarantee mechanisms provides a new form of ‘where flexibility’, which could turn real-world heterogeneity into a source of reciprocal gains for both developed and developing countries, and contribute to meeting the USD 100 billion + pledge of the Paris Agreement. Key Policy Insights Catalysing excess world savings through low-carbon investments (LCIs) would secure a safer and fairer economic recovery from the COVID-19 crisis and avoid locking developing countries into carbon-intensive pathways. Public policy instruments focused on the creation of public guarantees can reduce the up-front financial risks associated with LCIs, mobilize private money and increase the leverage of public finance. A multi-sovereign guarantee mechanism would yield financial support from developed to developing countries in cash grant equivalent and equity inflows two to four times higher than the ‘USD 100 billion and more’ commitment of the Paris Agreement, and provide greater confidence in meeting this commitment equitably and effectively with benefits for all.

The role of guarantees to access financial markets: A study of Italian companies

Access to credit in agriculture pursues the important objective of allowing the development of the agricultural sector. In recent years the need for a new paradigm rises. It aims for sustainable finance in agriculture and uses of guarantee instruments in order to mitigate risks, lower costs, and expand the opportunities for access to credit. This article aims to analyze the guarantee instruments available on the Italian financial market in relation to several variables including sector, size, age, and geographical location of the company. From an analysis of the sample of data on the guarantees provided by ISMEA (Italian Service Institute for the Agri-Food Market), emerges the presence of territorial disparities in the use of guarantees, more widespread in northern Italy, and a higher cost of debt for micro-enterprises and for funds dedicated to innovation. Research results are in line with previous research that points out the importance of guarantees to reduce financial risks and increase access to bank financing. The paper contributes to the existing research in this field by analysing the effect of guarantees on the cost of debt and by suggesting an increase in the use of these instruments in some sectors and in some areas of Italy

Is guarantee of origin really an effective energy policy tool in Europe? A critical approach

Guarantees of origin are tradeable energy certificates defined by directives 2009/28/EC and 2018/2001/EU of the European Union. They serve the aim of informing final consumers on energy sources used for their electricity supply. They are also expected to encourage new investments in renewable electricity generation. This paper investigates how the use of guarantees of origin meets these expectations. A literature review, an analysis of related regulations and an evaluation of empirical data shows that there are regulatory failures both at national and the European Union levels. Furthermore, due to a contradiction between certain rules in European Union level regulation, consumers receive unreliable information on their electricity consumption mix. Therefore, although national rules should be improved, the problem of reliability cannot be resolved until the Union level framework is modified. Furthermore, the present framework does not incentivise investments in renewable energy technologies either. Accordingly, recommendations are formulated for policy makers to ensure reliable and sufficient operation of the certificate system.

Mitigating Debt Risk with Economic Corridor Projects Through Treaties and Sequenced Financing

“The purpose of this note is to narrowly examine the role of banks in the debt financing of projects along an economic corridor such as cross-border pipelines, and the use of multilateral treaties and “debt sequencing” to mitigate risk in the development of such projects. There are many tools and strategies available to banks and lending institutions to mitigate risks to debt service, from the use of guarantees and long-term bonds, to insurance coverage. This note will narrowly focus on just two innovative approaches that can be applied in the context of multiple country mega-projects.”

Sharing information in the credit market: Contract-level evidence from U.S. firms

We investigate the impact of lenders' information sharing on firms' performance in the credit market using rich contract-level data from a U.S. credit bureau. The staggered entry of lenders into the bureau offers a natural experiment to identify the effect of lenders' improved access to information. Consistent with the predictions of Padilla and Pagano (1997, 2000) and Pagano and Jappelli (1993), we find that information sharing reduces contract delinquencies and defaults, especially when firms are informationally opaque. The results also reveal that information sharing does not reduce the use of guarantees, that is, it may not loosen lending standards.

Resolution of Banking Crises: The Good, the Bad, and the Ugly

This paper presents a new database of systemic banking crises for the period 1970-2009. While there are many commonalities between recent and past crises, both in terms of underlying causes and policy responses, there are some important differences in terms of the scale and scope of interventions. Direct fiscal costs to support the financial sector were smaller this time as a consequence of swift policy action and significant indirect support from expansionary monetary and fiscal policy, the widespread use of guarantees on liabilities, and direct purchases of assets. While these policies have reduced the real impact of the current crisis, they have increased the burden of public debt and the size of government contingent liabilities, raising concerns about fiscal sustainability in some countries.

Resolution of Banking Crises: The Good, the Bad, and the Ugly

This paper presents a new database of systemic banking crises for the period 1970-2009. While there are many commonalities between recent and past crises, both in terms of underlying causes and policy responses, there are some important differences in terms of the scale and scope of interventions. Direct fiscal costs to support the financial sector were smaller this time as a consequence of swift policy action and significant indirect support from expansionary monetary and fiscal policy, the widespread use of guarantees on liabilities, and direct purchases of assets. While these policies have reduced the real impact of the current crisis, they have increased the burden of public debt and the size of government contingent liabilities, raising concerns about fiscal sustainability in some countries.

An experimental examination of competitor-based price matching guarantees

We use experimental methods to demonstrate the anti-competitive potential of price matching guarantees in both symmetric and asymmetric cost duopolies. Our findings establish that when costs are symmetric, price matching guarantees significantly increase market prices. In markets with cost asymmetries, guaranteed prices remain high relative to prices without the use of guarantees, but the overall ability of price guarantees to act as a collusion facilitating device becomes contingent on the relative cost difference. Lesser use of guarantees, combined with lower average prices and slower convergence to the collusive level, suggests that the mere presence of cost asymmetries may curtail collusive behavior.

A regional coordination framework for renewable energy policy in the European Union

In order to have a transparent market for renewable electricity in the European Union (EU), it is necessary to track the flow of renewable electricity. With this in mind, the European Commission introduced a concept called 'Guarantee of Origin' in Directive 2001/77/EC. However, the principle of subsidiarity – that policy is made by the lowest competent authority – turned out to be in conflict with the goal of a transparent and competitive market for renewable electricity. The diverging interests of the member states and a crude definition of guarantees of origin in the directive led to diverging implementations of the renewable energy policy in EU. This paper proposes a roadmap for regional coordination of renewable energy policy through the use of guarantees of origin as a standardised tracking mechanism. The roadmap simultaneously uses a top-down and bottom-up approach to improve coordination.

The Economics of State Subsidies in Early Stage Financing

We analyze the effect of state subsidies on early stage investments. In a two‐period investment model with incomplete stage financing contracts, we describe optimal and second‐best investment levels. Optimality depends on external effects: given that private early stage financing generates positive external effects, the subsidies might be designed to use scarce state money most efficiently to mobilize private investment capital. However, a subsidy might also contribute to greater efficiency of the contractual relationship itself without regard to external effects. Refinancing subsidies can be optimal under both perspectives and are always optimal under last of the two approaches. The comparison of the main types of subsidies, i.e. refinancing subsidies, guarantees and direct investments, speaks against the use of guarantees. Finally, we show that our results do also hold if some investors (e.g. venture capitalists) have a superior screening capability.

Dissertation abstract: Essays on pricing in experimental duopoly markets

This dissertation comprises three independent essays that analyze pricing behavior in experimental duopoly markets. The first essay examines whether the content of buyer information and the timing of its dissemination affects seller market power. We construct laboratory markets with differentiated goods and costly buyer search in which sellers simultaneously post prices. The experiment varies the information on price or product characteristics that buyers learn under different timing assumptions (pre- and post-search), generating four information treatments. Theory predicts that price information lowers the equilibrium price, but information about product characteristics increases the equilibrium price. That is, contrary to simple intuition, presence of informed buyers may impart a negative externality on other uninformed buyers. The data support the model's negative externality result when sellers face a large number of robot buyers that are programmed to search optimally. Observed prices conform to the model's comparative statics and are broadly consistent with predicted levels. With human buyers, however, excessive search instigates increased price competition and sellers post prices that are significantly lower than predicted. The second essay uses experimental methods to demonstrate the anti-competitive potential of price-matching guarantees in both symmetric and asymmetric cost duopolies. When costs are symmetric, price-matching guarantees increase the posted prices to the collusive level. With asymmetric costs, guaranteed prices remain high relative to prices without the use of guarantees, but the overall ability of guarantees to act as a collusion facilitating device depends on the relative cost difference. Fewer guarantees, combined with lower average prices, suggest that cost asymmetries may discourage collusion. The third essay investigates the effect of firm size asymmetry on the emergence of price leadership in a homogeneous good duopoly. With discounting, the unique subgame-perfect equilibrium predicts that the large firm will emerge as the endogenous price leader. Independent of the level of size asymmetry, the laboratory data indicates that price leadership by the large firm is one of the most frequently observed timings of price announcement. In most cases, however, it comes second to simultaneous price-setting. This tendency to wait for the other firm to announce its price is especially strong when the level of size asymmetry between firms is low. We attribute the lower than expected frequency of price leadership to coordination failure, which is further compounded by elements of inequity aversion.

An Experimental Examination of Competitor-Based Price Matching Guarantees

We use experimental methods to demonstrate the anti-competitive potential of price matching guarantees in both symmetric and asymmetric cost duopolies. Our findings establish that when costs are symmetric, price-matching guarantees significantly increase market prices. In markets with cost asymmetries, guaranteed prices remain high relative to prices without the use of guarantees, but the overall ability of price guarantees to act as a collusion facilitating device becomes contingent on the relative cost difference. Lesser use of guarantees, combined with lower average prices and slower convergence to the collusive level, suggest that the mere presence of cost asymmetries may curtail collusive behavior.

Contingent Government Liabilities: Fiscal Threat to the Czech Republic?

A World Bank specialist on the effects of contingent liabilities on the fiscal position of transition and emerging-market economies examines the current situation in the Czech Republic, where the deliberate use of guarantees and other forms of off-budget support by the government has led to the accumulation of hidden liabilities. The paper first discusses how to identify, measure, and classify contingent liabilities and then outlines conceptual and measurement issues involved in assessing their impacts. The paper projects potential nearterm claims on budget resources stemming from defaults by borrowers covered by extant state guarantees. Journal of Economic Literature, Classification Numbers: E62, H50, H63. 1 figure, 10 tables, 13 references, appendix.