scholarly journals Bank Lending in the Knowledge Economy

2020 ◽  
Author(s):  
Giovanni Dell'Ariccia ◽  
Dalida Kadyrzhanova ◽  
Camelia Minoiu ◽  
Lev Ratnovski
Keyword(s):  
Knowledge Economy ◽  
Bank Lending ◽  
Mortgage Lending ◽  
Bank Loan ◽  
Intangible Capital ◽  
Real Sector ◽  
The Real ◽  
Substantial Growth ◽  
Loan Portfolios ◽  
Secular Decline

Abstract We study the composition of bank loan portfolios during the transition of the real sector to a knowledge economy where firms increasingly use intangible capital. Exploiting heterogeneity in bank exposure to the compositional shift from tangible to intangible capital, we show that exposed banks curtail commercial lending and reallocate lending to other assets, such as mortgages. We estimate that the substantial growth in intangible capital since the mid-1980s explains around 30% of the secular decline in the share of commercial lending in banks' loan portfolios. We provide suggestive evidence that this reallocation increased the riskiness of banks' mortgage lending.

Commercial Banks Credit and the Performance of Real Sector in Nigeria: 1990-2017

2020 ◽  
pp. 1-15
Keyword(s):  
Central Bank ◽  
Commercial Banks ◽  
Agricultural Sector ◽  
Manufacturing Sector ◽  
Bank Lending ◽  
Real Sector ◽  
Agricultural Credit ◽  
The Real ◽  
Scientific Discussion ◽  
The Cost

The study examined the arguments and counterarguments within the scientific discussion on commercial banks credit and the performance of real sector in Nigeria. The main objective of the study is to examine the effect of commercial banks credit on the performance of the real sector in Nigeria.Data was sourced from Central Bank of Nigeria Statistical Bulletin. A systematization literary approach for data analysis was Regression Analysis. Findings revealed that bank credit and bank lending rate does not have significant impact on real sector performance in Nigeria. It was showed that there was a positive and significant relationship between agricultural credit guarantee scheme fund and agricultural production in Nigeria. The study therefore recommends that banks should be directed to channel their credits towards the real sector to facilitate overall economic growth and development in Nigeria. It was recommended that there is the need policies that will favor the revamp of the agricultural sector in Nigeria should be given pride of place. Also, monetary authority through the Central Bank of Nigeria should create adequate policies and strategies towards deepening of the financial sector and reducing the cost of credit/loans so as to enhance productivity and consequently enhance the growth of the key sectors of economy such as manufacturing sector.

scholarly journals The Future of Banking System and Economic Development in Nigeria

2015 ◽  
Vol 20 (1) ◽  
Author(s):  
Olu Ajakaiye ◽  
M. Adetunji Babatunde
Keyword(s):  
Economic Development ◽  
Business Model ◽  
Commercial Banks ◽  
Banking System ◽  
Bank Lending ◽  
Real Sector ◽  
The Real ◽  
Access To Credit ◽  
The Future ◽  
Banking Business

This study examined the future of banking system and economic development in Nigeria in the context of the demand following hypothesis. Although, the Nigerian economy has witnessed steady growth, the productive base of the economy is narrow. This therefore requires that banks must engage in an effective financial intermediation process to aid the transformation of the real sector as an engine of growth. However, while the deposits mobilized and assets base of the commercial banks has increased in leap and bounds, the real sector access to credit is on the decline. Rather, the bulk of the funds are invested on government short term securities given their risk free characteristics which reflect the lazy bank syndrome. Prohibitively high cost of credit and existence of hidden charges also inhibit real sector access to commercial banks loan. Hence, to reconnect the banking system with the real sector, there is a need to discourage armchair banking business model and encourage supportive banking business model, lending and secure appropriate maturity profile of loans to the real sectors, promote modified collateral bank lending model, and encourage specialization of bank branches. These are expected to aid the growth of the real sector and fast track the process of economic development in Nigeria.

scholarly journals The development of bank lending to corporate clients in Ukraine in times of economic cycles

2017 ◽  
pp. 72-87 ◽  
Author(s):  
Yaroslav Chaikovskyi
Keyword(s):  
Interest Rates ◽  
Economic Activity ◽  
Bank Lending ◽  
Bank Loans ◽  
Bank Loan ◽  
Economic Activities ◽  
Economic Cycles ◽  
Loan Portfolios ◽  
Major Factors ◽  
Corporate Clients

The article considers bank lending to corporate clients in Ukraine overcoming the issues related to economic cycles. The dynamics of gross domestic product, total assets, and credit portfolios of Ukraine’s banks over the period between 2012 and 2016 is analyzed. The changes in the composition of bank loans to non-financial corporations are analyzed in terms of scheduled payments, forms of currencies, target allocation and economic activities. Additionally, the dynamics and composition of residents’ deposits mobilized by deposit-taking corporations are considered in terms of scheduled payments over the above period. The major factors that hinder the recovery of bank lending to corporate clients are identified. It is highlighted that the main obstacles to the development of banking lending to corporate clients in Ukraine in times of economic cycles are as follows: high interest rates; a significant percentage of unprofitable enterprises and loan arrears in bank loan portfolios; an increase of non-performing loans (NPL); the fact that banks, having sufficient liquidity for lending to economy-boosting projects, prefer to purchase government securities; corrupt practices of granting loans to affiliated companies (insider loans). The percentage of unprofitable enterprises in Ukraine in 2016 is determined and analyzed by type of economic activity. Based on the analysis performed, some assumptions are made about the trends of the development of bank lending to corporate clients in Ukraine and proposals on further harmonization of bank lending to corporate clients in times of economic cycles are set out.

Does focus strategy work? A study of bank loan portfolios in Indonesia

2019 ◽  
Vol 13 (3) ◽  
pp. 450-471
Author(s):  
Apriani Dorkas Rambu Atahau ◽  
Tom Cronje
Keyword(s):  
Bank Lending ◽  
Bank Loan ◽  
Content Type ◽  
Loan Portfolios ◽  
Bank Ownership ◽  
Lending Policy ◽  
Focus Strategy ◽  
The Impact ◽  
Positive Effect ◽  
Ownership Types

PurposeThe purpose of this paper is to determine the impact of loan concentration on the returns of Indonesian banks and examines whether bank ownership types affect the relationship between concentration and returns.Design/methodology/approachThis research uses heuristic measures of concentration: The Hirschman–Herfindahl index and Deviation from Aggregated Averages are applied to Indonesian banks across all sectors. The data covers the pre and post global financial crises periods from 2003-2011 for 109 commercial banks in Indonesia. Panel feasible generalised least squares analysis was applied.FindingsThe findings show that loan concentration increases bank returns. The positive effect of concentration on returns tends to be more significant for domestic-owned banks. In addition, the interaction effect shows that the positive effect of concentration on returns is less for foreign-owned banks.Research limitations/implicationsThe Indonesian central bank changes to the reporting format of sectoral loan allocation by banks since 2012 in terms of the Indonesian Banking Statistics Details of Enhancement matrix requires separate data analysis for 2012 onwards. The findings of this paper could be enhanced by more detailed data like interest rate expenses and bank level sectoral non-performing loans data.Practical implicationsThe findings suggest that a focus strategy provides better returns. Moreover, bank ownership types is an important factor to consider when setting a bank lending policy.Originality/valueThis paper is among the few studies where different measures of loan concentration in combination with measures of return are applied in Indonesia as an emerging Asian country. The research also provides evidence of the impact of concentration on the interest earnings of the loan portfolios of banks in addition to return on assets and return on equity that are generally applied as measures of return in previous research.

Monetary Policy and Commercial Bank Lending to the Real Sector in Nigeria: A Time Series Study

2018 ◽  
Vol 2 (1) ◽  
pp. 10-41
Author(s):  
Ogolo . ◽  
Tamunotonye Magnus
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Interest Rate ◽  
Money Supply ◽  
Commercial Banks ◽  
Bank Lending ◽  
Real Sector ◽  
Treasury Bill ◽  
The Real ◽  
Negative Effect

This study empirically examined the effects of monetary policy on commercial banks lending to the real sector from 1981 – 2014. The objective was to examine the effectiveness of monetary policy in channeling bank credit to the real sector. Annual time series data were sourced from Central Bank of Nigeria statistical bulletin. Two multiple regression models were specifically estimated with the aid of Software Package for Social Sciences. The study modeled commercial banks credit to agricultural and manufacturing sector as the function of interest rate, monetary policy rate, treasury bill rate, exchange rate, broad money supply and liquidity ratio. The result shows collinearity that corresponds with the Eigen value condition index, and variance constant are less than the required value. The Durbin Watson statistics shows the absence of multiple auto correlation and negative autocorrelation, while the variance inflation factors indicate the absence of auto-correlation. The regression results from model one found that interest rate, monetary policy rate have positive relationship with commercial banks lending to the agricultural sector while Treasury bill rate, exchange rate, broad money supply and liquidity ratio have negative effect on the dependent variable. Model two found that interest rate, Treasury bill rate, exchange rate, broad money supply and liquidity ratio have negative effect on commercial banks lending the manufacturing sector while monetary policy rate have positive relationship with the dependent variable. We recommend that monetary policy should be harmonize with bank lending objectives to enhance commercial banks lending to the real sector of the economy and that management of commercial banks should formulate policies of managing the negative effect of monetary policy variables on its lending.

scholarly journals The Role of Bank Lending in the Development of Ukraine’s Economy

2020 ◽  
Vol 3 (45) ◽  
pp. 176-183
Author(s):  
V. M. Kremen ◽  
◽  
O. I. Kremen ◽  
L. P. Huliaieva ◽  
◽  
...  
Keyword(s):  
Capital Investment ◽  
Bank Lending ◽  
Real Sector ◽  
The Real ◽  
Goods And Services ◽  
Estate Property ◽  
The Impact ◽  
The Relationship ◽  
Average Monthly Salary ◽  
Monthly Salary

The purpose of the article is to analyze the situation with bank lending to the real sector and its impact on the development of Ukraine’s economy. In order to effect this purpose, the following tasks have been fulfilled: to analyze the dynamics of the total bank lending to the real sector, to analyze the structure of bank lending to non-financial corporations by loan terms and by currency; to determine the volume of loans granted to non-financial corporations in order to buy, build and reconstruct real estate property. To carry out in-depth assessment of the impact made by bank lending to the real sector on economic development, a correlation and regression analysis has been made, revealing that the increase in bank lending to non-financial corporations leads to the growth of the GDP, industrial output (in goods and services), exports, capital investment and average monthly salary and wages. It also reduces the amount of man-power employed, which may serve as the evidence of production intensification and automation caused by using loan proceeds. The polynomial function most appropriately describes the relationship between the volume of bank lending to non-financial corporations and GDP, exports and employment in 2005-2019, and the exponential function most adequately describes the relationship between the volume of bank lending to non-financial corporations and capital investment and the average monthly salary and wages.

scholarly journals BANK LENDING OF INNOVATIONS IN THE REAL SECTOR OF THE REPUBLIC OF KAZAKHSTAN: CURRENT TRENDS AND PROBLEMS

2020 ◽  
Vol 2 (330) ◽  
pp. 49-56
Author(s):  
Z. Gusmanova ◽  
◽  
A. Kurmanalina ◽  
K. Yermekova ◽  
◽  
...  
Keyword(s):  
Bank Lending ◽  
Real Sector ◽  
The Real ◽  
Current Trends ◽  
The Republic

scholarly journals Bank Lending Efficiency in the Real Sector of the Economy of Ukraine within the Period of 2011 to 2014 Years

2015 ◽  
Vol 06 (12) ◽  
pp. 1209-1218 ◽  
Author(s):  
Mohammad Ayaz Ahmad ◽  
Grigorii P. Kots ◽  
Vyacheslav V. Lyashenko
Keyword(s):  
Bank Lending ◽  
Real Sector ◽  
The Real

Bank lending of the real sector of economy

2018 ◽  
Vol 93 (2) ◽  
pp. 32-40
Author(s):  
S. A. Vlasiuk ◽  
◽  
N. V. Bondarenko ◽  
Keyword(s):  
Bank Lending ◽  
Real Sector ◽  
The Real

scholarly journals Peran Pinjaman Bank Terhadap Sektor Riil (Pendekatan Vector Autoregressive)

2012 ◽  
Vol 4 (1) ◽  
Author(s):  
Aula Ahmad Hafidh
Keyword(s):  
Time Lag ◽  
Bank Lending ◽  
Positive Influence ◽  
Real Sector ◽  
Bank Lending Channel ◽  
Vector Autoregressive ◽  
The Real ◽  
Lending Channel

This paper examines how bank lending channel could affected the real sector. The result shows that bank lending have positive influence in the Indonesia real sector. Using Vector Autoregressive (VAR), bank lending affect real sector with time lag. In this paper, real sector divided into two block, household and firm. Household faster to react in increasing bank lending by consumption rise.

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