scholarly journals Factors Affecting Commercial Bank Lending to Agriculture

1995 ◽  
Vol 27 (1) ◽  
pp. 112-126 ◽  
Author(s):  
Eustacius N. Betubiza ◽  
David J. Leatham
Keyword(s):  
Commercial Bank ◽  
Commercial Banks ◽  
Bank Lending ◽  
Bank Holding Companies ◽  
Demand And Supply ◽  
Holding Companies ◽  
Factors Affecting ◽  
Loan Portfolios

AbstractA tobit econometric procedure was used to examine the effect of selected demand and supply factors on nonreal estate agricultural lending by commercial banks in Texas. Results show that banks have reduced their agricultural loan portfolios in response to increased use of interest sensitive deposits after deregulation. Moreover, almost half of this decrease came from banks that stopped making agricultural loans. Also, results show that banks affiliated with multi-bank holding companies lend less money to agriculture relative to their assets than do independent banks.

New Nigerian bank lending policy may disappoint

2019 ◽  
Keyword(s):  
Commercial Bank ◽  
Commercial Banks ◽  
Slow Growth ◽  
Bank Lending ◽  
Treasury Bills ◽  
Content Type ◽  
Consumer Lending ◽  
Lending Policy ◽  
Policy Measures ◽  
Nigerian Banking

Subject Nigerian banking innovations. Significance After complaints over the slow growth of commercial bank lending specifically to preferred sectors, the Central Bank of Nigeria (CBN) recently proposed a range of new policy measures. This includes a new minimum loan-to-deposit ratio (LDR) target of 60% for all commercial banks, and that loans extended to small and medium-sized enterprises (SMEs), retail, mortgage and consumer lending be weighted at 150%. Banks are required to conform to the new requirements by September 30. Impacts Liquidity outflows from banks that opt to drop expensive deposits may lead to pressure on the naira. The interplay of the new LDR policy and CBN Treasury Bills' maturities will prompt uncertainty in currency and debt markets. Newly created banks are even more unlikely to be able to expand their loan book quickly enough to meet the new requirements.

scholarly journals THE INFLUENCE OF THIRD-PARTY FUNDS, NON-PERFORMING LOANS (NPL) ON CREDIT DISTRIBUTION WITH PROFITABILITY AS INTERVENING VARIABLE IN COMMERCIAL BANKS

2020 ◽  
Vol 4 (02) ◽  
Author(s):  
Sri Hermuningsih ◽  
Pristin Prima Sari ◽  
Anisya Dewi Rahmawati
Keyword(s):  
Commercial Bank ◽  
Commercial Banks ◽  
Quantitative Research ◽  
Sampling Technique ◽  
Bank Lending ◽  
Third Party ◽  
Internal Factors ◽  
Negative Effect ◽  
The Government ◽  
The Relationship

Banks are financial institutions that collect and distribute funds in the forms of deposits such as savings, deposits, current accounts, etc. from and for people who need funds for various needs, such as for consumption, working capital or business capital, housing and investment. In addition, banks must help the community to improve their living standards by distributing funds or giving credit to people who need funds. This is in accordance with the function of the bank itself, namely the bank as the distributor of funds. The purpose of this research is to examine and obtain evidence about factors that influence loan distribution at a bank. Internal factors that influence loan distribution are Third Party Funds, Non-Performing Loans, and Profitability. Efforts to increase credit at banks require optimal efforts to raise third-party funds, good credit management, and capital strengthening. This type of research is quantitative research with purposive sampling technique. The population used in this study is commercial banks from 2013 to 2017. The data come from commercial bank financial statements. As the benefit of this research the government can use it as a mapping material for distributing loan to commercial banks; the bank management can take it into consideration in making commercial bank lending policies. The results of the research show that profitability can mediate the relationship between third party funds and non-performing loans on loan distribution. Third party funds have a significant positive effect on loan distribution. Non-Performing Loans have a significant negative effect on loan distribution. Keywords: LOAN DISTRIBUTION, THIRD PARTY FUNDS, NON-PERFORMING LOANS, AND PROFITABILITY

Plan to clear Greek banks’ bad debt looks feasible

2017 ◽  
Keyword(s):  
Commercial Banks ◽  
Bank Lending ◽  
Gdp Growth ◽  
Working Capital ◽  
Content Type ◽  
Loan Portfolios ◽  
Key Sectors ◽  
The Government ◽  
Greek Banks ◽  
Bad Debt

Subject Efforts to cleanse banks’ loan portfolios. Significance More than half of Greek bank lending is classed as ‘non-performing exposures’ (NPEs), constraining lending capacity and so putting negative pressure on GDP growth. The government says it should have a whole package of measures in place by mid-August to deal with NPEs. There have been slippages before, but this time the creditors are leaning very heavily on Athens to stick to the timetable. Impacts Bad debts will limit commercial banks’ capacity to make new loans to key sectors of the economy. This will have an adverse effect on working capital for existing businesses and their trade. Lack of liquidity will also slow new investments and construction.

scholarly journals IMPACT OF LENDING STRUCTURE ON CREDIT RISK IN VIETNAMESE COMMERCIAL BANKS

2018 ◽  
Vol 1 (31) ◽  
pp. 1-9
Author(s):  
Diem Thi Thu Le ◽  
Tung Thanh Diep
Keyword(s):  
Credit Risk ◽  
Commercial Bank ◽  
Commercial Banks ◽  
Banking System ◽  
Bank Lending ◽  
Industrial Sector ◽  
Commercial Banking ◽  
Retail Trade ◽  
Economic Sector ◽  
Lending Activity

This study examines whether lending structure concentration leads to lower credit risk by employing GMM estimators of panel data for the Vietnamese banking system at the bank level by economic sector from 2009 to 2016. The advance point of this research is the effect of different industrial sector variables on credit risk. An important finding is that the Vietnamese commercial bank lending portfolios have, on average, higher levels of diversity across different sectors. Overall, the research finds that an increase in the mining and quarrying, manufacturing, electricity, gas and water, construction and real estate lending will contribute to the bank’s exposures to credit risk, while the lending portfolio of banks in wholesale and retail trade and other sectors reduces credit risk. This study suggests recommendations in lending activity for maintaining efficiency and stability in Vietnamese commercial banking system.  

scholarly journals Lending and Cash Required Reserve: Empirical Evidence from Ethiopian Commercial Bank

2018 ◽  
Vol 14 (13) ◽  
pp. 179 ◽  
Author(s):  
Mitku Malede Yimer
Keyword(s):  
Commercial Bank ◽  
Commercial Banks ◽  
Predictor Variable ◽  
Bank Lending ◽  
Least Square ◽  
Financial Data ◽  
Ordinary Least Square ◽  
Credit Creation ◽  
The Impact ◽  
The Relationship

The study was mainly intended to determine the effect of cash required reserve on commercial bank lending in Ethiopia using panel data of eight purposively chosen commercial banks over the period of eleven years (2005 to 2015). The investigation tested the relationship between commercial bank lending and cash required reserve. Eleven years financial data of eight purposively chosen commercial banks were used for analysis purpose. Ordinary least square model was applied to test the impact of predictor variable on commercial bank lending. The result suggests that, there is no significant relationship between commercial bank lending and cash required reserve in Ethiopian commercial. This study suggests that commercial bank have to give less emphasis to cash required reserve because it doesn’t weakens banks credit creation ability and does not leads a bank to be insolvent.

scholarly journals Effect of Bank Lending on Inflation in Nepal

2018 ◽  
Vol 4 (2) ◽  
pp. 27-43
Author(s):  
Neelam Timsina Dhungana ◽  
Radhe Shyam Pradhan
Keyword(s):  
Regression Analysis ◽  
Panel Data ◽  
Central Bank ◽  
Commercial Bank ◽  
Commercial Banks ◽  
Bank Lending ◽  
Empirical Results ◽  
Correlation And Regression Analysis ◽  
Positive Effect

This study examines the effect of commercial bank lending on inflation in Nepal. The study has conducted correlation and regression analysis using panel data of twenty four commercial banks during the period of 1996 -2015. The empirical results show that bank lending has positive effect on the inflation in Nepal. The study implies that central bank willing to contain inflation should curtail excessive bank lending on unproductive and speculative sector.

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