scholarly journals Lending Cycles and Real Outcomes: Costs of Political Misalignment*

2021 ◽  
Author(s):  
Çağatay Bircan ◽  
Orkun Saka
Keyword(s):  
Credit Constraints ◽  
Electoral Competition ◽  
Bank Credit ◽  
Financial Resources ◽  
Local Elections ◽  
Firm Entry ◽  
Aggregate Productivity ◽  
Private Banks ◽  
Political Cycle ◽  
Political Alignment

Abstract We document a strong political cycle in bank credit and industry outcomes in Turkey. In line with theories of tactical redistribution, state-owned banks systematically adjust their lending around local elections compared with private banks in the same province based on electoral competition and political alignment of incumbent mayors. This effect only exists in corporate lending and creates credit constraints for firms in opposition areas, which suffer drops in assets, employment and sales but not firm entry. Financial resources and factors of production are misallocated as more efficient provinces and industries suffer the greatest constraints, reducing aggregate productivity.

Local elections may strain Tunisia's unity government

2018 ◽  
Keyword(s):  
Local Governance ◽  
Financial Resources ◽  
Local Elections ◽  
Campaign Strategies ◽  
Municipal Elections ◽  
Content Type ◽  
Local Election ◽  
Security Personnel ◽  
General Elections ◽  
Election Results

Significance Military and security personnel voted early on April 29, with a turnout of 12%. There are concerns that widespread apathy, coupled with a desire among the Tunisian electorate with the opportunity to express their dissatisfaction with the unity government’s performance, will dampen turnout and undermine the municipal councils from the outset. Impacts The local election results could cause parties to reassess campaign strategies for the 2019 general elections. Local governance will be effective only if adequate mechanisms are in place to transfer financial resources. The municipal elections present an opportunity for women and younger candidates.

Elections and Economic Cycles

2019 ◽  
pp. 291-308
Author(s):  
Çağatay Bircan ◽  
Orkun Saka
Keyword(s):  
Economic Activity ◽  
Economic History ◽  
Central Government ◽  
Financial Inclusion ◽  
Local Elections ◽  
Economic Cycles ◽  
Political Cycles ◽  
Private Banks ◽  
The Government ◽  
Run Up

This chapter studies the presence of political cycles in Turkey’s recent economic history. It first discusses the incentives and the ability of the central government to engage in opportunistic behavior to boost economic activity around local elections. It then describes how the tools available to the government on the fiscal and banking fronts have changed since the 2001 crisis. The chapter documents suggestive evidence that state-owned banks engage in selective lending in the run-up to local elections when compared with private banks. This selective lending seems to favor provinces where the governing party faces greater competition from the opposition. There is less evidence regarding fiscal spending. The chapter discusses the implications of politically motivated policies on financial inclusion and aggregate efficiency.

Firm Restructuring System in Korea: A Comparison of Firm Performance Between Policy Finance Institutes and Private Banks

2021 ◽  
pp. 097639962110185
Author(s):  
Hochul Shin
Keyword(s):  
Data Analysis ◽  
Firm Performance ◽  
Propensity Score ◽  
Human Resources ◽  
Quantitative Methods ◽  
Financial Resources ◽  
Private Banks ◽  
Financial Soundness ◽  
Restructuring Process ◽  
Firm Restructuring

The performance of firm restructuring led by policy finance institutes in Korea was analysed using quantitative methods. Firm performance in terms of the probability of graduating from the restructuring process, profitability and financial soundness for restructuring firms managed by policy finance institutes was compared against those managed by private banks. Data analysis using the propensity score matching (PSM) and Heckman models found the following characteristics in the firm restructuring led by policy finance institutes in Korea. First, the probability of graduating from restructuring was statistically significantly lower in the firms managed by policy finance institutes. Second, the strength of restructuring in terms of material and human resources since the start of restructuring was statistically significantly stronger in firms managed by policy finance institutes. However, whether the policy finance institutes were the main creditors since the start of the restructuring process significantly reduced the firms’ sales. Nevertheless, it did not affect their profitability in a statistically significant manner. Considering that relatively more financial resources are injected into the restructuring firms managed by policy finance institutes, it can be concluded that the firm restructuring led by policy finance institutes is less efficient.

Incumbency Advantage in the Context of Electoral Manipulation. Experiences of Local Elections in Poland

2020 ◽  
Vol 18 (4) ◽  
pp. 647-674
Author(s):  
Agnieszka Turska-Kawa ◽  
Weldemar Wojastik
Keyword(s):  
Electoral Competition ◽  
Local Elections ◽  
Incumbency Advantage ◽  
Potential Impact ◽  
The Individual

The paper analyzes the potential impact of individuals exercising their mandate and running for re-election (incumbents) on the instrumentalization of the electoral competition. The context chosen for this analysis is provided by local elections and by mechanisms used by politicians to improve their electoral chances. As in other types of elections, the personal dimension of manipulation in local elections is asymmetrical in its nature. Due to their position and resources held, incumbents are the ones who have a higher manipulative potential than their challengers. The aim of the paper is to analyze the advantage of incumbents in local elections by indicating the electoral manipulations used with regard to three basic types: institutional, communicative, and psychological. The analysis is conducted on the basis of Polish electoral experience and illustrated with examples justifying the importance of the individual manipulations in the electoral competition.

scholarly journals Bank credit as a source of formation of financial resources of enterprises

2019 ◽  
Vol 34 (4) ◽  
pp. 78-82
Author(s):  
P.G. Isaeva ◽  
◽  
G.Z. Abdulkhalikov ◽  
Keyword(s):  
Bank Credit ◽  
Financial Resources

scholarly journals Performance of Regional Rural Banks after Amalgamation in India: Progress and Prospects

2012 ◽  
Vol 11 (3) ◽  
pp. 1
Author(s):  
Tasleema M Jorum ◽  
Sujata S Mali
Keyword(s):  
Urban Areas ◽  
Development Process ◽  
Banking System ◽  
Financial Resources ◽  
Grameen Bank ◽  
The Past ◽  
Private Banks ◽  
Indian Banks ◽  
The Impact ◽  
Agricultural Labourers

For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons for India's growth process. The government's regular policy for Indian banks since 1969 has paid rich dividends with the nationalization of 14 major private banks of India. Regional Rural Banks started their development process on 2 October 1975 with the formation of a single bank—Prathama Grameen Bank. The RRBs mobilize financial resources from rural/semi-urban areas and grant loans and advances mostly to small and marginal farmers, agricultural labourers and rural artisans. The area of operation of RRBs is limited to the area as notified by GoI covering one or more districts in the State. In this context, the present study is an attempt to examine the impact of amalgamation on physical performance of RRBs during post-amalgamation period.Keywords: Banking; Regional rural banks; Amalgamation; Profit and loss and economic development; NPAs and deposits.

Credit Constraints and Self-Fulfilling Business Cycles

2014 ◽  
Vol 6 (1) ◽  
pp. 32-69 ◽  
Author(s):  
Zheng Liu ◽  
Pengfei Wang
Keyword(s):  
Business Cycles ◽  
Credit Constraints ◽  
Heterogeneous Firms ◽  
Increasing Returns ◽  
Contract Enforcement ◽  
Aggregate Productivity ◽  
Representative Agent ◽  
Equity Value ◽  
Aggregate Dynamics

We argue that credit constraints not only amplify fundamental shocks, they can also lead to self-fulfilling business cycles. We study a model with heterogeneous firms, in which imperfect contract enforcement implies that productive firms face binding credit constraints, with the borrowing capacity limited by expected equity value. A drop in equity value tightens credit constraints and reallocates resources from productive to unproductive firms. Such reallocation reduces aggregate productivity, further depresses equity value, generating a financial multiplier. Aggregate dynamics are isomorphic to those in a representative-agent economy with increasing returns. For sufficiently tight credit constraints, the model generates self-fulfilling business cycles. (JEL E13, E32, E44)

scholarly journals BANKS’ LENDING PREFERENCES AND SME CREDIT IN PAKISTAN: EXPERIENCE AND WAY FORWARD

2020 ◽  
Vol 1 (1) ◽  
pp. 18-30
Author(s):  
Saddam Ilyas
Keyword(s):  
Risk Mitigation ◽  
Credit Constraints ◽  
Financial Resources ◽  
Risk And Return ◽  
Related Risk

This analysis builds on the evidence that Pakistani banks (as of June 2017) have sufficient financial resources to lend at levels that would be helpful for SMEs at large. Channelization of this excess banking liquidity to SMEs can lead to investment in innovative and lucrative projects to stimulate employment and growth in a number of important industries. However, banks are found reluctant to finance to SMEs owing the opacity issues and related risk. Mitigation od this problem nonetheless demand that banks should take leaps in adopting progressive/modern lending techniques (which bode well for the modern financing needs of SMEs) banks (without compromising on risk and return) can more adequately address SME credit constraints.

scholarly journals The Role of Administrative Intelligence in the Phases of Bank Credit Decision Making: An Exploratory Study of the Sample of Managers in a Number of Branches of Private Banks Operating in Duhok and Erbil

2016 ◽  
Vol 2 (1) ◽  
pp. 388
Author(s):  
Hadi Khalil Ismael ◽  
Hozan Tahseen Tofiq
Keyword(s):  
Decision Making ◽  
Exploratory Study ◽  
Bank Credit ◽  
Private Banks ◽  
Number Of Branches

هدف البحث إلى الكشف عن دور الذكاء الإداري في مراحل صنع قرار الائتمان المصرفي. حيث تناول البحث أربعة أبعاد للذكاء الإداري, وهي: الرؤية، السلوك الذكي، أسلوب الإتصال، والتغذية العكسية بهدف اختبار علاقتها مع مراحل صنع قرار الائتمان المصرفي،   استخدمت الاستبانة لجمع بيانات الجانب الميداني حيث وزعت على المديرين في (20) من فروع المصارف  الاهلية العاملة ضمن محافظة دهوك واربيل وفروعها ، وبلغ عدد افراد العينة (90) من المديرين في تلك المصارف  .استخدمت عدة ادوات احصائية لاختبار فرضيات الدراسة ومنها النسب المئوية  والتوزيعات التكرارية والمتوسطات الحسابية والانحرافات المعيارية وتحليل الانحدار البسيط والمتعدد . تمثلت الاستنتاجات الرئيسة بوجود علاقات ارتباط معنوية موجبة بين أبعاد الذكاء الإداري ومراحل صنع قرار الائتمان المصرفي ووجود علاقات تاثيرية معنوية موجبة بينهما. تضمنت الدراسة عدد من التوصيات للمصارف المبحوثة تساهم في كيفية تعزيز مستويات الذكاء الإداري لدى إداراتها, وكذلك ترشيدها لكيفية صنع قرارات الائتمان المصرفي بشكل أفضل  ومنها العمل على تعزيز معارف, ومهارات الذكاء الإداري لدى المديرين في المصارف المبحوثة, وبخاصة الذين يتخذون قرارات الائتمان المصرفي من خلال إشراكهم في الدورات التدريبية, وان تركز هذه الدورات على إكسابهم المعرفة والمهارات في المجالات وضع الرؤية المستقبلية لتوجهات المصارف, وكيفية نشرها بين العاملين واقناعهم بها واتخاذ السلوك الذكي الذي يسمح للمدير بأن يرتقي إلى مستويات أعلى من الإنجاز ليصبح قدوة لمرؤوسيه.

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