Building Societies and Local Lending Behaviour

1983 ◽  
Vol 15 (5) ◽  
pp. 663-673 ◽  
Author(s):  
J Doling ◽  
P Williams
Keyword(s):  
Interest Rates ◽  
Statistical Evidence ◽  
Market Clearing ◽  
Building Society ◽  
Lending Decisions ◽  
Pattern Of Variation ◽  
Clearing Rate ◽  
Building Societies

This paper considers the determinants of variation in individual building society lending behaviour. A level of conformity in lending behaviour is identified, which it is argued results from a number of constraints that arise from the environment in which lending decisions are made. It is further argued, however, that considerable variation in lending behaviour is also apparent and is made possible by the practice of charging interest rates which are lower than the market clearing rate. The first part of the paper expands on these arguments and develops a model of managerial lending behaviour. The paper then continues with an examination of successful mortgage applicants in a sample of building society branch offices and attempts to show what statistical evidence there is for the pattern of variation and constraints described at the inter- and intrasociety levels.

scholarly journals Recognizing Reality—Unification of Official and Parallel Market Exchange Rates

2021 ◽  
Vol 20 (25) ◽  
Author(s):  
Simon Gray
Keyword(s):  
Exchange Rate ◽  
Exchange Rates ◽  
Case Studies ◽  
Economic Activity ◽  
Central Banks ◽  
Market Exchange ◽  
Market Clearing ◽  
Economic Agents ◽  
Market Exchange Rate ◽  
Clearing Rate

Some central banks have maintained overvalued official exchange rates, while unable to ensure that supply of foreign exchange meets legitimate demand for current account transactions at that price. A parallel exchange rate market develops, in such circumstances; and when the spread between the official and parallel rates is both substantial and sustained, price levels in the economy typically reflect the parallel market exchange rate. “Recognizing reality” by allowing economic agents to use a market clearing rate benefits economic activity without necessarily leading to more inflation. But a unified, market-clearing exchange rate will not stabilize without a supportive fiscal and monetary context. A number of country case studies are included; my thanks to Jie Ren for pulling together all the data for the country case studies, and the production of the charts.

scholarly journals Die invloed van inligtingstegnologie op werkverskaffing in die Suid-Afrikaanse finansiële sektor

1992 ◽  
Vol 23 (1) ◽  
pp. 16-20
Author(s):  
Gideon S. Hom ◽  
Charles V.R. Wait
Keyword(s):  
Information Technology ◽  
South African ◽  
Service Sector ◽  
Manufacturing Sector ◽  
Value Added ◽  
Telecommunication Networks ◽  
Production Functions ◽  
Insurance Companies ◽  
Building Society ◽  
Building Societies

The influence or information technology on the provision of employment in the South African financial sectorThe higher levels of productivity in the manufacturing sector, as a result of the automation and other significant changes in production functions, often lead to fears of higher levels of unemployment, as certain types of labour could become redundant. The application of information technology in the form of computers, data banks and telecommunication networks has, to a great extent, contributed to the automation of routine functions, as well as to the integration of various production functions. The danger exists that a great number of workers released from the manufacturing sector are not always trained and suitable for employment in the service sector. In addition, there may not be sufficient employment opportunities to accommodate these workers. The influence of information technology on employment should, however, be considered in terms of the net effect of the three distinguishing effects of information technology on an economy, namely the process, product and organization effects. In South Africa, employment and value added increased in the building society and banking fields during the period 1980-89. Those increases are attributed specifically to the product effect. Since the eighties, banks, building societies and insurance companies have all started to market new and more products that are directly linked to information technology.

The Calculation of Premium Rates for Decreasing Temporary Assurances

1965 ◽  
Vol 17 (06) ◽  
pp. 483-489
Author(s):  
E. M. Thomas
Keyword(s):  
Interest Rates ◽  
Family Income ◽  
Text Book ◽  
Life Assurance ◽  
Single Premium ◽  
Premium Rates ◽  
Building Societies ◽  
Annual Premium ◽  
Exact Cover

In their text book,The Practice of Life Assurance, published in 1952, Coe and Ogborn devoted less than four pages to the methods of calculating premiums for varying temporary assurances, including family income policies. At that time decreasing temporary assurances were relatively uncommon except for a block of single-premium policies transacted mainly by a small number of offices which specialized in them.Since that date, however, the transaction of this type of policy on an annual-premium basis has assumed very substantial proportions, particularly in connexion with mortgages, and the cover provided varies considerably among different offices. Some are prepared to go to considerable lengths to provide exact cover, whereas others appear reluctant to go into any great refinements. This is understandable as the calculation of premium rates is quite a formidable task whichever of the known methods is used. The not infrequent changes in building societies' interest rates add considerably to the difficulties.

scholarly journals Organisation change and its impact on Australian building societies’ performance.

2008 ◽  
Vol 6 (2) ◽  
pp. 132-142
Author(s):  
Dianne Thomson
Keyword(s):  
Organizational Development ◽  
Cost Efficiency ◽  
Empirical Literature ◽  
Building Society ◽  
Motivation For Change ◽  
Financial Performance Measures ◽  
And Performance ◽  
Building Societies ◽  
Accounting Ratios ◽  
Organizational Development And Change

The paper examines the relation between changing ownership structure and performance of Australian building societies. An analysis and discussion of the theories of organizational development and change is undertaken to explore the mutual building societies’ motivation for change. The financial performance measures, provided by financial ratios of the major mutual building societies in Australia, are examined to assess the behavior of building societies under different governance structures in the 1980s and 1990s. The theoretical and empirical literature has suggested that mutual deposit-taking institutions should have lower profitability and higher operating expenses than their publicly listed counterparts. Accounting ratios are observed over time to investigate if governance change in mutual deposit-taking organizations accounted for any discernable differences in profitability and cost efficiency pre- and post- demutualization. The study finds support for the contention that demutualized building societies will have higher profitability and lower costs than their mutual counterparts. The study is confined to investigation of the six largest building societies that undertook the demutualization process. It could be extended to the entire building society sector. The results have implications for investors, managers and ‘owners’ of firms that retain their mutual structure, suggesting the demutualization will benefit these groups. There is no study that compares mutual deposit-taking institutions pre- and post-conversion in Australia

Money, Inflation, and Interest Rates in the Market-Clearing Model

1994 ◽  
pp. 155-172
Author(s):  
Robert Barro ◽  
Vittorio Grilli
Keyword(s):  
Interest Rates ◽  
Market Clearing

scholarly journals LOOKING BEYOND FARM LOAN APPROVAL DECISIONS: LOAN PRICING AND NONPRICING TERMS FOR SOCIALLY DISADVANTAGED FARM BORROWERS

2017 ◽  
Vol 50 (1) ◽  
pp. 129-148 ◽  
Author(s):  
CESAR L. ESCALANTE ◽  
ADENOLA OSINUBI ◽  
CHARLES DODSON ◽  
CARMINA E. TAYLOR
Keyword(s):  
Interest Rates ◽  
Minority Groups ◽  
Service Agency ◽  
Loan Pricing ◽  
Credit Risks ◽  
Socially Disadvantaged ◽  
Lending Decisions ◽  
And Gender ◽  
Farm Service Agency ◽  
Loan Approval

AbstractThis study utilizes Farm Service Agency lending data to verify if previous racial and gender bias allegations still persist in more recent lending decisions. Beyond loan approval decisions, this study focuses on trends in direct loan packaging terms for approved single proprietorship farm borrowers. Results indicate that although no significant disparities were noted in loan amounts and maturities prescribed for various racial and gender minority groups, nonwhite male and female borrowers were usually charged higher interest rates than the others. Loan pricing differentials could have been the lenders' strategy for price management of borrowers' credit risks.

scholarly journals Efficiency of the building societies in the Czech Republic

2011 ◽  
Vol 59 (4) ◽  
pp. 143-150
Author(s):  
Lukáš Leksovský ◽  
Daniel Stavárek
Keyword(s):  
Czech Republic ◽  
Data Envelopment Analysis ◽  
Parametric Method ◽  
Data Envelopment ◽  
Effective Response ◽  
Building Society ◽  
The Czech Republic ◽  
Average Efficiency ◽  
Administrative Expenses ◽  
Building Societies

This paper is the first attempt to analyze efficiency of building societies in the Czech Republic. We apply non-parametric method Data Envelopment Analysis on data from all building societies in the sector over the period 2002–2008. Having deposits received and administrative expenses as inputs and volume of loans disbursed as output we estimate efficiency scores of all individual building societies as well as calculate the average efficiency in the industry. For this purpose we use two alternative models that allows for constant and variable returns of scale respectively. The results suggest that there is no significant improvement in efficiency of building societies during the estimation period. Furthermore, most of the building societies have not been operating at appropriate size. We also found that Českomoravská stavební spořitelna, a. s. was the most efficient building society in the Czech Republic according to the both models applied. In order to increase efficiency, we suggest reduction in the number of external employees and agents or increase of their productivity, more sophisticated products that can outperform the standard services and effective response to changes in the legislature.

scholarly journals Mortgage Loans and Impacts of the Global Pandemic COVID-19 in the Globalized Society

2021 ◽  
Vol 92 ◽  
pp. 01047
Author(s):  
Libuše Svobodová ◽  
Martina Hedvičáková
Keyword(s):  
Interest Rates ◽  
Financial Market ◽  
Financial Institution ◽  
Value Added ◽  
Theoretical Background ◽  
Mortgage Loan ◽  
Mortgage Loans ◽  
Loan Repayment ◽  
Building Society ◽  
Secondary Sources

Research background: The paper is focused on the financial product, esp. on mortgage loans that are often used products in the field of long-term financing in the Czech Republic. These products provide commercial banks and other financial institutions on the Czech globalized financial market. Purpose of the article: The aim of the paper is to analyze the situation on the globalized financial market focused on the mortgage loans and loans from building societies in view of the global Covid-19 pandemic. Methods: Firstly a theoretical background with a review of the literature is provided, then research methodology is described, the key part brings results of development of mortgage loans, development of interest rates and the analysis of the current situation on the mortgage loan market with estimation of future development. The last part is focused on the comparison of selected mortgage loans provided by five financial institution. The article is based on primary and secondary sources. A detailed research together with the analysis and critical assessment of accessible materials will enable to identify the main objectives in the field of study. Findings & Value added: Interest rates on mortgage loans have on the Czech market downward trend in the last years. The best conditions scored in 2019 loan from building society Modrá pyramida. The overall situation in 2020 cause lower interest rates in the mortgage loans. Lower annual percentage rate of charge and smaller monthly mortgage loan repayment and the total overpayment also correspond.

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