scholarly journals Agricultural Financial Ratios, Discriminant Analysis, and Prediction of Corporate Bankruptcy in the Community Banking System in Nigeria

1996 ◽  
Vol 21 (3) ◽  
pp. 37-48
Author(s):  
C J Arene
Keyword(s):  
Discriminant Analysis ◽  
Management System ◽  
Banking System ◽  
Financial Ratios ◽  
Corporate Bankruptcy ◽  
Agricultural Credit ◽  
Loan Repayment ◽  
Credit Management ◽  
Financial Position ◽  
Community Banking

The Community Banking Scheme was started in Nigeria with the hope that much of the existing credit-related problems would be solved. This study evaluates the agricultural credit management system of the Community Banking Scheme with the focus on the financial position and the loan repayment problems of the farmers.

scholarly journals EFFECTIVENESS OF CREDIT MANAGEMENT SYSTEM ON LOAN PERFORMANCE OF COMMERCIAL BANKS IN KENYA

2017 ◽  
Vol 2 (1) ◽  
pp. 106
Author(s):  
Michael Njeru ◽  
Dr Shano Mohhamed ◽  
Mr. A Wachira
Keyword(s):  
Interest Rates ◽  
Commercial Banks ◽  
Management System ◽  
Target Population ◽  
Small Data ◽  
Chi Square ◽  
Loan Repayment ◽  
Credit Management ◽  
Degree Of Association ◽  
Self Administered Questionnaire

Purpose: the purpose of this study was to analyze effectiveness of credit management system on loan performance of commercial banks in Kenya.Methodology:Descriptive research design was used. The population comprised of 86 respondents. That is, one credit manager and one credit officer from one branch of each of the 43 commercial banks registered with central bank of Kenya as at this year. A census study was conducted since the target population was small. Data was collected using a self-administered questionnaire through drop and pick later method. The questionnaire was both open and closed ended. Test retest method was used to ensure reliability while piloting was used to check the validly of the research instrument .data was analyzed using to frequencies, percentages and means. Correlation was used to compute the degree of association between variable. The hypothesis was tested using chi square. Data was thereafter presented using table and pie charts. Results:The study established that credit terms has an effect on performance, just like credit appraisal was equally found to be very important in influencing performance of commercial banks. Similarly, a stringent policy was found to have a far greater influence to performance than a libel policy Policy recommendation: It was then recommended the character of the borrower, the current capacity and collateral attached should carry a lot of weight in the appraisal. In addition, credit officer and client should be involved in formulation of credit terms and interest rates on loans reduced since these have an effect on loan repayment hence performance of commercial banks. 

scholarly journals ANALISIS PENGARUH MANAJEMEN RISIKO TERHADAP PROFITABILITAS (Studi Komparatif Pada Bank Umum Konvensional dan Bank Umum Syariah yang Terdaftar di OJK Periode 2012 – 2015)

2018 ◽  
Vol 11 (1) ◽  
pp. 001
Author(s):  
Hafidz Ridho Ansori ◽  
Safira Almunawar
Keyword(s):  
Commercial Bank ◽  
Negative Impact ◽  
Banking System ◽  
Multiple Linear Regression Model ◽  
Sampling Technique ◽  
Total Sample ◽  
Study Data ◽  
Capital Adequacy ◽  
Financial Ratios ◽  
Islamic Banks

Risk management is a good potential events that can be predicted and unpredicted negative impact on income and capital of the Bank. Financial ratios are an alternative to test whether financial ratios useful for making predictions on future profitability. CAR, NPL and LDR is a measure of the ability to predict profitability. Sampling technique used is purposive sampling with criteria Conventional Commercial Bank do / unlock (Dual Banking System) Islamic Banks serving the financial statements of the period 2012 to 2015. The data obtained by the publication of the FSA Directory. Obtained a total sample of 16 with the division 8 8 Conventional Commercial Bank and Commercial Bank Syariah. The independent variables in this study is the Capital Adequacy Ratio (CAR), Non performace loans (NPLs) and loan to deposit ratio (LDR) while Return on Assets (ROA) as the dependent variable. Methods of data collection in this study is documentation and literature. During the period show that the study data were normally distributed. Based on the test multicollinearity, heteroscedasticity test and autocorrelation test found no deviation from the classical assumption, it indicates that the available data are qualified to use a multiple linear regression model. The comparison of this study showed that the CAR and NPL variable Conventional Commercial Bank affect the ROA, LDR whereas no effect. In contrast to the conventional, all variables Islamic Banks are CAR, LDR and NPL effect on ROA.

scholarly journals Trade credit management in wholesale companies based on statistical methods

2018 ◽  
Vol 15 (5) ◽  
pp. 27-39
Author(s):  
E. V. Ermakova
Keyword(s):  
Discriminant Analysis ◽  
Statistical Methods ◽  
Logistic Model ◽  
Trade Credit ◽  
Delay Period ◽  
Credit Management ◽  
Financial Characteristics ◽  
Reasonable Choice ◽  
Different Characteristics ◽  
Binomial Logistic Model

Study purpose. The paper shows the application of statistical methods for the trade credit management in the wholesale Russian companies. In this industry, the companies deal with a huge amount of customers, while trade credit is a common practice. As a result, fast and reasonable choice of trade credit terms becomes especially important for wholesale companies. The main study purpose is to provide the methods to choose the trade credit terms.Materials and methods. In this paper, the methods for trade credit management are based of the empirical research where binomial logistic model and discriminant analysis were used. The binomial logistic model was used to assess the customers’ reliability, his inclination to violate the terms specified in the contract. The delay period must be chosen when trade credit is provided. In the paper, the discriminant analysis was applied to make the decision. The discriminant functions allow choosing such a period of delay that will be broken with the least probability by the customer with certain financial and non-financial characteristics. The data used refer to 11 Russian companies from the wholesale industry and include 720 observations for 2016-2017.Results. As a result, the possibility of due repayment may be evaluated and the payment delay may be selected according to individual customers’ characteristics. Eight factors that characterize the liquidity of the purchaser, its profitability, turnover, and non-financial factors became significant to assess the reliability. In conclusion, the paper contains the practical example for four hypothetical purchasers with different characteristics. The higher the reliability of the customer, the more attractive conditions can be offered for him, depending on the propensity to risk of the wholesale company, as well as its financial opportunities.Conclusion. This article contains the model to evaluate the possibility of due repayment and algorithm to select the payment delay, which are based on the binomial logistic model and classification functions. Although there are a large number of methods to select the terms of trade credit, the majority of them have serious limitations. The most of methods are based only on the professional experience, while statistical analysis, in presence, is based on data of one company because of the confidentiality of necessary information. In contrast, this article is based on the empirical data and includes the delay period selection, which is slightly enlightened in the literature.

scholarly journals ANALISIS PENGARUH MANAJEMEN RISIKO TERHADAP PROFITABILITAS (Studi Komparatif Pada Bank Umum Konvensional dan Bank Umum Syariah yang Terdaftar di OJK Periode 2012 – 2015)

2018 ◽  
Vol 11 (1) ◽  
pp. 001
Author(s):  
Hafidz Ridho Ansori ◽  
Safira Almunawar
Keyword(s):  
Commercial Bank ◽  
Negative Impact ◽  
Banking System ◽  
Multiple Linear Regression Model ◽  
Sampling Technique ◽  
Total Sample ◽  
Study Data ◽  
Capital Adequacy ◽  
Financial Ratios ◽  
Islamic Banks

Risk management is a good potential events that can be predicted and unpredicted negative impact on income and capital of the Bank. Financial ratios are an alternative to test whether financial ratios useful for making predictions on future profitability. CAR, NPL and LDR is a measure of the ability to predict profitability. Sampling technique used is purposive sampling with criteria Conventional Commercial Bank do / unlock (Dual Banking System) Islamic Banks serving the financial statements of the period 2012 to 2015. The data obtained by the publication of the FSA Directory. Obtained a total sample of 16 with the division 8 8 Conventional Commercial Bank and Commercial Bank Syariah. The independent variables in this study is the Capital Adequacy Ratio (CAR), Non performace loans (NPLs) and loan to deposit ratio (LDR) while Return on Assets (ROA) as the dependent variable. Methods of data collection in this study is documentation and literature. During the period show that the study data were normally distributed. Based on the test multicollinearity, heteroscedasticity test and autocorrelation test found no deviation from the classical assumption, it indicates that the available data are qualified to use a multiple linear regression model. The comparison of this study showed that the CAR and NPL variable Conventional Commercial Bank affect the ROA, LDR whereas no effect. In contrast to the conventional, all variables Islamic Banks are CAR, LDR and NPL effect on ROA.

Maintaining Financial Stability in the Banking Sector

2019 ◽  
pp. 30-48
Author(s):  
Meltem Gurunlu
Keyword(s):  
Risk Management ◽  
Management System ◽  
Financial Stability ◽  
Banking Sector ◽  
Banking System ◽  
Capital Adequacy ◽  
Basel Accords ◽  
Risk Management System ◽  
Strategic Approach ◽  
Global World

Maintaining financial stability in the banking sector through a well-functioning risk management system is a strategic approach in today's global world where the risks have become much more diversified than ever. This chapter was undertaken in order to investigate the risk management topic by focusing on the experiences learned from the banking crises up-to-date and implications of the Basel Accords which outlined capital adequacy standards to prevent such crises. With paying special attention to the case of Turkish banking system, main challenges and possible solutions are also discussed.

scholarly journals Loan Repayment Performance of Public Agricultural Credit Agencies: Evidence from Jordan

2013 ◽  
Vol 5 (6) ◽  
Author(s):  
Ali AL-Sharafat ◽  
Tala Qtaishat ◽  
Mohammed I. Majdalawi
Keyword(s):  
Agricultural Credit ◽  
Loan Repayment

scholarly journals Measuring Financial Distress and Predicting Corporate Bankruptcy: An Index Approach

2016 ◽  
Vol 9 (1) ◽  
pp. 33-51 ◽  
Author(s):  
Qunfeng Liao ◽  
Seyed Mehdian
Keyword(s):  
Financial Distress ◽  
Predictive Power ◽  
Predictive Accuracy ◽  
Parametric Models ◽  
Financial Ratios ◽  
Z Score ◽  
Corporate Bankruptcy ◽  
Financial Failure ◽  
Index Approach ◽  
Multivariate Discriminant

AbstractIn this paper, we follow Anderson et al. (2009) and suggest a simple approach to employ a set of financial ratios as inputs to estimate an aggregate bankruptcy index (ABI). This index is a within sample measure, ranges between 0 and 1, and ranks the firms on the basis of their relative financial distress. ABI can be used to predict the propensity of financial failure and corporate bankruptcy. For the purpose of comparison and assessment of the robustness of this index, we estimate Z-score by multivariate discriminant analysis, using the same set of financial ratios to compare the predictive accuracy of two approaches.We find that, to some extent, ABI can predict the bankruptcy of the firms more accurately than Z-score. The empirical results of the paper suggest that ABI has relatively robust predictive power and, therefore, can be applied together with other, based on parametric and non-parametric models to predict corporate bankruptcy.

‘My Friend the Shylock’: Money-Lenders and their Clients in South-Western Nigeria

1993 ◽  
Vol 34 (3) ◽  
pp. 403-423 ◽  
Author(s):  
Toyin Falola
Keyword(s):  
Interest Rates ◽  
Banking System ◽  
Colonial Administration ◽  
Loan Repayment ◽  
Legal Documents ◽  
High Interest ◽  
Vulnerable People ◽  
Debt Recovery

As older ways of raising credit declined or were re-defined, the acquiring of loans from a specialized group of money-lenders flourished in colonial Western Nigeria. Money-lenders charged exorbitant interest and insisted on loan repayment at a fixed date. Borrowing from the modern banking system, the money-lenders prepared legal documents and required surety. Debt recovery was generally painful to defaulters; they were humiliated, harassed, and had their property confiscated. The practice generated many conflicts. The debtor was generally unhappy, especially if the money was used for consumption. Lenders cheated with high interest rates and other charges and promoted for their own ends indiscriminate lending to poor and vulnerable people. To minimize conflicts and protect debtors, the colonial administration decided to regulate the trade with ordinances, especially the Moneylenders' Ordinance of 1938 which set limits to interest and forced lenders to obtain licences. In general, lenders subverted the ordinance, creditors and debtors became more cunning as documents were falsified to protect lenders, and those who needed money continued to accept harsh terms.

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