Impact of credit lending

One of the natural consequences of lending practices by banks and credit institutions has been the creation of deferred and doubtful loans- a phenomenon that has become a major concern for these institutions and has had a negative impact on their revenue and expenditure. From an internal perspective, operating costs, work efficiency, profitability, customer service, branch rank, employee wages and salaries, and other qualitative indicators are significantly affected.

10p longtimenosee10 26-04-2024 2 1   Download

The main results indicate that competition positively impacts on the probability of loan non-payment. However, more specifically, expanding lending products also denotes a positive effect on the capability of non-repayment, supported by the “competition – instability” prevalent view.

5p vispyker 16-11-2022 13 4   Download

Enabling the use of future receivables as collateral to access to credit is highly economically meaningful, as its development is for one thing to assist businesses and individuals to access the capital easily with movable assets to be accrued in the future, and for another thing to encourage lending by reducing the financial vulnerability of lenders. In Vietnam, the recognition of future objects as a form of property eligible to be used as collateral since the 2005 Civil Code has had positive impacts on business financing.

9p trinhthamhodang9 04-12-2020 12 2   Download

This paper aims to provide the overall state of rural agriculture loans in the Rayalaseema region, its status, the impact of credit lending, the role of banking institutions and governance in rural finance expenditures, and the improvement, barriers, and challenges throughout the years.

11p orianahuynh 08-06-2020 11 0   Download

This paper provides an in-depth study on the history and evolution of Commercial Bank characteristic factors and other Macroeconomic variables on the financial industry performance indices in Nigeria from 1977 to 2010. The work employed a 3-stage procedure in the assessment of Commercial Bank characteristic factors and other Macroeconomic variables on Total Credit, Investment, and Commercial Bank Lending and Deposit Rate. The essence is to assess the impact of environmental factors on efficiency of commercial banks in Nigeria within the period of study.

12p covid19 19-04-2020 28 3   Download

In this paper we investigate the relationship between housing prices and mortgage lending in China. We analyze a sample of 28 Chinese domestic commercial banks during the period between 2003 and 2009. Our results suggest that the urbanization process in China contributes substantively to the mortgage credit boom. We find a distinct behavior of the economic housing market, in which the housing price and mortgage credits affect each other adversely. The monetary policy has a greater impact on the mortgage lending than banks’ characteristics.

10p cothumenhmong4 24-03-2020 26 2   Download

The aim of this research is to show that unless the lending business is incentivised by an appreciable earnings potential the effect of the enforcement of the Basel III capital and liquidity requirements is sure to be a credit crunch. Initially, this empirical research hypothesis was tested against a number of independent variables reflecting trends in lending volumes; subsequently, these variables were used to establish if the risks of default that corporate borrowers face under the impact of credit rationing are likely to be heightened by other factors.

10p trinhthamhodang2 21-01-2020 30 1   Download

The paper uses the secondary data of 26 banks with 182 observations for the period of 2008–2014 and applies the panel data regression method. The empirical results indicate that lending scale, credit risk, capitalization, and interest rate have positive impacts on net interest margin.

12p danhnguyentuongvi27 18-12-2018 46 2   Download

Besides the enhanced access to official credit by means of improvement of lending procedures to be more simplified and appropriate to the people’s level of knowledge, flexible in terms of the repayment time and borrowed amounts, the officialisation of the other credit channels make positive impacts on the creation of sources of capital for rural households, given its efficiency.

10p thanos1 16-05-2018 48 3   Download

Gender analysis is improving the quality of the World Bank’s adjust- ment and programmatic lending operations in a number of areas essential to growth and poverty reduction, including protection for displaced workers, access to land, and discrimination in the rural labor market. For example: The Vietnam Poverty Reduction Support Credit has been particular- ly strong in analyzing the likely gender impacts of state-owned enter- prise reform, and integrating this analysis into the design of safety net provisions for displaced workers.

49p machuavo 19-01-2013 65 4   Download

The impact of collateral on credit risk is a subject that has raised a good deal of debate. From a theoretical perspective, there are two alternative interpretations that lead to different empirical predictions. On the one hand, the collateral pledged by borrowers may help attenuate the problem of adverse selection faced by the bank when lending [Stiglitz and Weiss (1981), Bester (1985), Chan and Kanatas (1985), Besanko and Thakor (1987a, b) and Chan and Thakor (1987)].

84p enterroi 02-02-2013 57 3   Download

At the same time there were progressively more skeptical views on the impact of securitization on the financial system stability. Some argue that by making illiquid loans liquid securitization could increase, other things being equal, the risk appetite of banks (Calem and LaCour, 2003; Wagner, 2007; and Brunnermeier and Sannikov, 2009). Risk sharing within the financial sector through securitization can also amplify bank risks also at the systemic risk level (Brunnermeier and Sannikov, 2010).

46p enterroi 01-02-2013 43 6   Download

Many analysts also contend that credit scores, which weigh items that signify financial distress or limited availability of credit, are correlated with minority status. Significant debate has continued about lending practices that restrict access to credit in minority communities—a factor that could have a significant impact on insurance-based credit scores.

98p enterroi 01-02-2013 49 4   Download

There are strong interdependencies between banks and governments, through both balance sheet and contingent claim exposures. These interdependencies mutually reinforce the macroeconomic propagation of banking or sovereign market tensions. Second, given the fragmentation of some market segments and the setback to European banking sector integration, persistent cross-country heterogeneity needs to be considered. Third, a proper assessment of fi nancing conditions hinges on the distinction between demand and supply-side factors in credit intermediation.

19p taisaocothedung 09-01-2013 50 2   Download