China’s non-performing loans may be manageable

2021 ◽  
Keyword(s):  
Decision Making ◽  
Economic Development ◽  
Banking Sector ◽  
Business Sector ◽  
Private Companies ◽  
Content Type ◽  
Balance Sheets ◽  
Payment Services ◽  
Independent Decision

Significance However, the overall health of China’s banking sector is problematic. The banks have significant non-performing loans (NPLs) on their balance sheets. The situation has further deteriorated in 2020 due to the pandemic and resulting pressure on the business sector and state-directed lending. Impacts Reduction of state-directed lending would benefit private companies, which drive China’s economic development. Signs of more independent decision-making by listed banks would likely increase the value of their shares. Regulation of shadow lending and fintech will push depositors, borrowers and users of payment services back to the official banking sector.

Circular 36 will improve Vietnamese bank governance

2015 ◽  
Keyword(s):  
Economic Development ◽  
Systemic Risk ◽  
Banking Sector ◽  
Commercial Banking ◽  
Economic Downturn ◽  
Governance Structures ◽  
Business Sector ◽  
Content Type ◽  
Reform Agenda ◽  
Socio Economic Development

Subject The outlook for Vietnam's Circular 36 bank initiaitve. Significance Vietnam's banking sector remains fragile after the recent global economic downturn and because of excessive leverage by state-owned enterprises (SOEs) looking to finance acquisition sprees using debt. However, 2015 will be a key year: the State Bank of Vietnam (SBV) enacted 'Circular 36' on February 1, to improve the governance structures and operating requirements of Vietnamese commercial banking. Impacts Banking sector improvements should help the expanding commercial business sector through more vigorous lending. If Hanoi sticks to its reform agenda, banking sector systemic risk will decrease, with further rating upgrades likely for Vietnam. A stronger banking sector should underpin Vietnamese socio-economic development.

Fast growth may avert foreign banks' exit from Hungary

2015 ◽  
Keyword(s):  
Financial Institutions ◽  
Banking Sector ◽  
Prime Minister ◽  
Foreign Banks ◽  
Content Type ◽  
Balance Sheets ◽  
Government Relations ◽  
Local Currency ◽  
Wait And See ◽  
The Government

Subject Prospects for the banking sector. Significance The government is buying a 30% stake in the Austrian lender Erste Bank under a memorandum of understanding (MoU) with the European Bank for Reconstruction and Development (EBRD). The MoU signifies a volte-face by Prime Minister Viktor Orban, whose relationship with foreign-owned banks has been fraught with difficulties since the imposition of a levy on financial institutions in 2010 that drove down earnings and achieved notoriety as one of the highest taxes of its kind in Europe. The government has pledged to reduce the bank tax during 2016-19. Impacts The MoU may not redefine government relations with foreign banks, but could mean more activity on the market by institutional investors. Banks will clean up balance sheets, adopting a 'wait and see' strategy until FX debt relief peters out and the bank tax starts to fall. A return to profitability is unlikely before 2016; much depends on an uptake in corporate and household loans denominated in local currency.

Nigerian banks will struggle to repeat 2017 results

2018 ◽  
Keyword(s):  
Small Businesses ◽  
Banking Sector ◽  
Oil And Gas ◽  
National Elections ◽  
Treasury Bills ◽  
Content Type ◽  
Balance Sheets ◽  
Domestic Debt ◽  
The Government ◽  
Run Up

Subject Nigerian banking sector. Significance Some of Nigeria’s largest banks made significant profits in 2017 despite the country’s recession, benefitting mainly from high-yielding Nigerian Treasury Bills. This is unlikely to be repeated this year, with yields falling as the government replaces expensive domestic debt with cheaper Eurobonds, and banks attempt to shore up their balance sheets. Higher oil prices will help this process, yet many smaller banks are struggling to replicate their larger rivals' success. Impacts A restructuring of telecommunications company 9Mobile’s loan would benefit banks' non-performing loan numbers. Any uptick in Niger Delta insecurity could negatively impact banks, as most have significant loans with the upstream oil and gas sector. The CBN may issue more loans via commercial banks to small businesses and farmers in the run-up to next year's national elections.

How to reduce local government decision-making competition in China’s new urbanization process

Kybernetes ◽  
2015 ◽  
Vol 44 (5) ◽  
pp. 671-691 ◽  
Author(s):  
Dong Wang ◽  
Hengzhou Xu ◽  
Xiaoyan Li
Keyword(s):  
Decision Making ◽  
Economic Development ◽  
Local Government ◽  
Central Government ◽  
Market Competition ◽  
Content Type ◽  
Government Decision ◽  
Future Economic Development ◽  
The Impact ◽  
New Urbanization

Purpose – The purpose of this paper is to analyze the impact of local government decision-making competition new urbanization, further to seek measures to weaken the negative effect of local government decision-making competition. Design/methodology/approach – This paper first puts forward the three paths which make local government decision-making competition: construction of new-style urbanization, economic development and construction of people’s livelihood and take China’s new-style urbanization as an example, the authors analyzed the internal mechanism of decision making of local government competition which caused by above three paths. Second, using the prospect theory, risk aversion theory and Cournot duopoly model, the authors analyzed how to avoid the local government decision-making competition and how to reduce the harm caused by local government decision-making competition. Findings – The central government can curb the appearance of local government competition strategy through regulating and controlling the effectiveness of local government protective-investment policy, improving the degree of market competition and punishment coefficient of government decision-making failure and further, the authors can reduce the detriment of decision-making competition between local governments through adjusting the revenue function of local government in the process of new-style urbanization. Originality/value – New-style urbanization is the main driving force of China’s future economic development, however, in the process of new-style urbanization, because of the “principle-agent” relationship between central government and local government, officials achievements appraisal mechanism and promotion game, they all cause competition between local government decision making, and this will weaken the positive effect of urbanization. Although, there are many researches on horizontal and intergovernmental competition, most researches devoted to how to avoid it from the angle of institutional economics, and the suggestions put forward by these researches are hardly applied. Anyone interested in how to avoid local government decision-making competition and reduce the negative influences of it from the angle of unitary government state’s reality will find this paper valuable.

One study, four cities: information impact in neighborhood economic development

2020 ◽  
Vol 14 (4) ◽  
pp. 663-680 ◽  
Author(s):  
Jeffrey Carroll
Keyword(s):  
Decision Making ◽  
Economic Development ◽  
Local Government ◽  
Decision Makers ◽  
Government Officials ◽  
Content Type ◽  
Local Decision ◽  
Types Of Information ◽  
Local Decision Makers ◽  
Sophisticated Analysis

Purpose The purpose of this study is to create a theory on how a commissioned study impacts the decision-making of local government officials. Design/methodology/approach This study uses comparative case studies via the “Knowledge Cycle,” which is a method of examining information use for four distinct decision-making environments’ development (Baltimore, Maryland; Louisville, Kentucky; Detroit, Michigan; and Tampa, Florida). Findings This study reports significance in three factors that may explain information impact: the presence of an “information champion” who directs the application of the study toward initiatives that are important to them, the length of time that one can use information before it becomes outdated and the ability to use the study to spur dialogue with development stakeholders outside of local government. Research limitations/implications The limitation to this study is that it is limited to the observation of a specific population (local government economic development bureaucrats) and their use of a specific package of information. The debate is open to whether the findings of this study are relevant to actors using other types of information within other levels of government and within other fields of inquiry. Practical implications Advances in information technology and the proliferation of data intermediaries who can use sophisticated analysis warrant the understanding how government officials interact with the studies that they commission. Originality/value To date, there are few studies that have examined how a singular package of information is used in multiple decision-making environments. This paper adds to this dearth of scholarship while creating theory to how and why local decision-makers may use information.

Impact of financial inclusion on economic development of marginalized communities through the mediation of social and economic empowerment

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tarsem Lal
Keyword(s):  
Economic Development ◽  
Banking Sector ◽  
Financial Inclusion ◽  
Primary Data ◽  
Economic Empowerment ◽  
Content Type ◽  
Marginalized Communities ◽  
Depth Analysis ◽  
The Government ◽  
The Impact

PurposeThe purpose of this paper is to check the impact of financial inclusion on economic development of marginalized communities through the mediation of socio-economic empowerment.Design/methodology/approachIn order to fulfil the objectives of the study, primary data were collected from 382 bank customers belonging to marginalized communities breathing in Jammu district of J and K by using purposive sampling technique. The data were collected during the month of April–August 2020. Multivariate statistical techniques such as EFA, CFA and SEM were used for data analysis and scale purification.FindingsThe study’s results reveal that financial inclusion has a direct and significant impact on economic development of marginalized communities through the mediation of social and economic empowerment. The study highlights that despite various initiatives taken by the government towards financial inclusion, there is a denial from the financial institutions to extend the credit to the marginalized communities due to lack of education, illiteracy, lack of awareness, attitude of bankers and policy directions to the banking sector, which confine these communities to feel proud, dignified, confident and self-reliant to face any financial crisis.Research limitations/implicationsFirst the in-depth analysis of the study is restricted to Jammu district only that restricts the generalization of the results to the whole population of J and K. Second, the data were collected from respondents belonging to marginalized communities only. Third, comparative study of marginalized households who are covered under the financial inclusion drive and those who are still financially excluded has not been done yet. Fourth, the questionnaire approach was the only way to gather primary data and thus, the results might have a common-method bias.Originality/valueThe study makes contribution in the direction of financial inclusion narrative relating to socio-economic empowerment and economic development of marginalized communities. It looks into how for the socio-economic aspects of marginalized communities influence their exclusion from the financial system of the country. The study also provides valuable insights for the policymakers, researchers and academicians both at the countrywide and intercontinental level to devise and put into practice programmes that will widen right to use financial products and services leading to cutback of poverty incidence, income parity, social and economic empowerment, economic development and reduction in caste and gender based discrimination.

Ukraine's chances of a favourable conflict end recede

2017 ◽  
Keyword(s):  
Decision Making ◽  
Presidential Election ◽  
Content Type ◽  
Military Conflict ◽  
Election Result ◽  
Independent Decision ◽  
Economic Ties ◽  
The Military

Significance The military conflict in eastern Ukraine remains muted, but the breakdown of economic ties, trade, and supplies of power and water makes a political rapprochement look even more remote. Moscow had hoped for direct engagement with President Donald Trump's administration but little has happened, and the four-party (Russian-Ukrainian-German-French) talks process remains in place. Impacts Narrowing economic options will further limit independent decision-making by rebel leaders. The French presidential election result and the likely outcome of German elections allow four-party 'Normandy format' talks to continue. If Ukraine perceives continued Western support, it may act more assertively towards the rebels.

Bank profits rise despite credit slump in Argentina

2019 ◽  
Keyword(s):  
Interest Rates ◽  
Banking Sector ◽  
Foreign Currency ◽  
High Interest Rate ◽  
Content Type ◽  
Balance Sheets ◽  
The Public ◽  
High Interest ◽  
Sector Performance ◽  
Economic Outlook

Subject Banking sector performance. Significance Banks were one of the few sectors that performed well in 2018, aided by monetary tightening and the subsequent high interest rate on Central Bank (BCRA) securities. Peso depreciation also yielded windfall gains, owing to banks’ holdings of foreign currency-denominated assets. By contrast, credit to the private sector declined in real terms, as high interest rates, falling real incomes, rising unemployment and a poor economic outlook discouraged borrowing. Impacts Monetary tightening and IMF-agreed fiscal targets agreed will delay economic recovery. The persistence of the recession could drive a further deterioration of banks’ balance sheets. Given banks’ growing exposure to the public sector, fears of a debt restructuring could drive widespread withdrawals of deposits.

HHI-based evaluation of the European banking sector using an integrated fuzzy approach

Kybernetes ◽  
2019 ◽  
Vol 48 (6) ◽  
pp. 1195-1215 ◽  
Author(s):  
Hasan Dincer
Keyword(s):  
Decision Making ◽  
Banking Sector ◽  
Market Competition ◽  
Second Phase ◽  
Multi Criteria Decision Making ◽  
Content Type ◽  
Fuzzy Vikor ◽  
Fuzzy Environment ◽  
European Banking ◽  
The Impact

Purpose This paper aims to evaluate the market concentration and competition in the European Banking Sector using an integrated multi-criteria decision-making approach under the fuzzy environment. Design/methodology/approach The hybrid model combining fuzzy decision-making trial and evaluation laboratory (DEMATEL), fuzzy analytic network process (ANP) and fuzzy VIKOR methods is applied to measure the market competition and concentration in the European Banking Sector. For this purpose, two academicians and one expert from banking sector with at least five-year experiences are selected to evaluate the dimensions, criteria and alternatives. The academicians are also appointed to define the decision-making problem and determine the dimensions and the criteria on the basis of related literature. The implementation of the model has been constructed in three main phases. The first phase consists of the fuzzy DEMATEL technique for understanding the impact-relation map among the dimensions. The second phase includes the fuzzy ANP method for measuring the relative importance of the criteria. The last phase comprises the fuzzy VIKOR approach to rank the alternatives with the values of the Herfindahl–Hirschman Index (HHI). Findings Turkey, France, England and Germany are placed in the competitive market structure of the European Banking Sector respectively. Additionally, the comparative results of the study confirm the market shares and the competitive policies of the European and Turkish Banking Sector. Originality/value The novelty of the paper is to construct a hybrid multi-criteria decision-making model with the proposed HHI scales under the fuzzy environment and defined competition dimensions and criteria based on the literature for the European Banking Industry.

Research on the regional leading industry selection of “Kashgar urban agglomerations” based on multi-attribute weighted intelligent grey target decision-making evaluation model

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xiao Bai ◽  
Yan Xu ◽  
Sifeng Liu
Keyword(s):  
Decision Making ◽  
Growth Rate ◽  
Economic Development ◽  
Evaluation System ◽  
Evaluation Model ◽  
Urban Agglomeration ◽  
Content Type ◽  
Urban Agglomerations ◽  
Wood Processing ◽  
Leading Industry

PurposeThe purpose of this paper is to establish the index system of leading industries in Kashgar urban agglomeration, and use the multi-attribute weighted intelligent grey target decision-making evaluation model to measure the comprehensive effect, so as to select the leading industries of Kashgar urban agglomeration.Design/methodology/approachFirst, 18 industries in Kashgar urban agglomerations are taken as objectives, and four indexes, namely, demand income elasticity index, growth rate index, labor productivity growth rate index and contribution rate of output value, are selected to construct an evaluation system for leading industry selection in Kashgar urban agglomerations. Then, grey incidence degree method is used to determine the decision-making power of each decision-making objective. Finally, multi-attribute weighted intelligent grey target decision-making evaluation model is used to measure the comprehensive effect of the objective system of leading industries in Kashgar urban agglomerations.FindingsIt can be seen that the multi-attribute weighted intelligent grey target decision-making evaluation model is more convenient to be used in selecting regional leading industries, and the results are accurate and feasible. Based on the calculation results and the actual economic development requirements of Kashgar urban agglomeration, the leading industries of Kashgar urban agglomeration can be determined as: wood processing, furniture, paper making and printing; wholesale and retail; construction; equipment manufacturing; transportation, storage and postal services.Originality/valueFirst, it is a new method in selecting regional leading industry by using the multi-attribute weighted intelligent grey target decision-making evaluation model. Second, since there is relatively little research on Kashgar urban agglomeration, especially on leading industries in Kashgar urban agglomeration. The research in this paper can not only enrich the research on selecting leading industries in urban agglomeration but also provide scientific reference for relevant government agencies to formulate economic development plans.

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