scholarly journals Credit Accessibility to Vulnerable Sections: Management Perspective

2007 ◽  
Vol 6 (1) ◽  
pp. 86-101
Author(s):  
Veerashekharappa .
Keyword(s):  
Asymmetric Information ◽  
Participatory Approach ◽  
Rural Poor ◽  
Mutual Trust ◽  
Credit System ◽  
Informal Credit ◽  
Management Perspective ◽  
Resource Poor ◽  
Banking Relationship ◽  
Credit Institutions

Despite the vast expansion of the formal credit system in India, the dependence of the rural poor on informal credit institutions continues in some areas especially for meeting the emergency credit requirements. Such dependence is pronounced in the case of marginal farmers, landless labourers, petty traders and rural artisans, etc., particularly in the resource-poor areas. And credit needs of these sections determined in a complex socio-economic milieu, where it is difficult to adopt project lending approach as followed by banks and where the dividing line between credit for "consumption" and "productive" purposes is blurred (NABARD 1999). It is in this context, peoples' management in making credit to poor assumes significance. The participatory approach bring out the mutual trust and over comes the asymmetric information between the members, which is necessary for initiating banking relationship based on trust and confidence.

scholarly journals Microfinance and Women Empowerment: A Case Study of Darjeeling District

2015 ◽  
Vol 2 (1) ◽  
Author(s):  
Bhajan Chandra Barman
Keyword(s):  
Rural Women ◽  
Survey Method ◽  
Rural Poor ◽  
Credit System ◽  
Chi Square ◽  
Informal Credit ◽  
Poor Women ◽  
Chi Square Test ◽  
Real Picture

Micro finance in the form of Self-Help Group (SHG) Linkage model has been able to inspire hope in the lives of thousands of rural poor especially poor women by shifting them from debt-trap of informal credit sources to formal credit system. In this context the present study makes a modest attempt to examine that extent to which microfinance programme is effective in empowering rural women. A primary field survey has been carried out in Kharibari block of Darjeeling district to get the real picture. Survey method was applied and interview schedule has been used to collect relevant data from the respondents. Using tabular analysis and chi square test, results of this study indicate significant differences between SHGs women (i.e., those involved with SHG) and non-SHGs women regarding various economic, socio-cultural and political indicators of empowerment. It was also found that SHGs women have more active participation in various income generating activities. They earned more income, saved more money and at the same time owned more assets than non-SHGs women. The study also stresses the need of more loans to be expanded to rural poor women folk to enhance their economic solvency and empower them economically.

Informal Credit System Through Social Entrepreneurs in Tiruchirappalli District, Tamil Nadu

2012 ◽  
Vol 3 (6) ◽  
pp. 21-23
Author(s):  
Dr. C. Paramasivan Dr. C. Paramasivan ◽  
◽  
T. Kannan T. Kannan
Keyword(s):  
Tamil Nadu ◽  
Credit System ◽  
Social Entrepreneurs ◽  
Informal Credit

Establishment and Operation of Private Land Credit Institutions in Penza Province in the Late 1860s – mid 1880s

2021 ◽  
Vol 17 (4) ◽  
pp. 349-360
Author(s):  
Natalia A. Kisteneva
Keyword(s):  
Agricultural Sector ◽  
Private Landowners ◽  
Private Land ◽  
Credit System ◽  
Economic Activities ◽  
Economic Methods ◽  
Private Credit ◽  
Set Up ◽  
The 19Th Century ◽  
Credit Institutions

Introduction. The abolition of public credit institutions in the first half of the 19th century meant that following after the peasant reform, private landowners were forced to rely entirely on their ability to conduct economic activities, they desperately needed the money demanded for the capitalist modernization of their estates. It was important under such circumstances the appearance in the mid-1860s of private land banks that have granted land collateral loans. Materials and Methods. The study of the claimed problem required the involvement of a number of historical and economic methods: historical, statistical and quantitative. At the same time, the question of the amount of debt owed to private land banks was examined on the basis of a comprehensive analysis of statistical data on land credit published by a committee of congresses of representatives of Russian land credit institutions. Results. The article analyzes the main indicators of the activity of the joint-stock land banks in the first two decades of their operation, considers the characteristics of the establishment and development of the private land credit system, the volume of loans issued, the size of the mortgaged land, the amount of the loans are shown by their regional characteristics. Discussion and Conclusions. Set up in mid-nineteenth century the system of equity land credit, which focuses on the granting of land mortgages by private landowners, has played an important role in the processes of land ownership mobilization and the development of capitalism in the agricultural sector. Private credit institutions were one of the most important components of the land credit system, and the activities of these institutions in the territory of the governorate in question resulted in: that almost a quarter of all privately owned land had been deposited in them.

scholarly journals Analisis Persepsi dan Biaya Transaksi Terhadap Sumber Kredit Usaha Pengolahan Ikan Asin

2021 ◽  
Vol 11 (1) ◽  
pp. 1-12
Author(s):  
Nurul Maulina ◽  
Dwi Rachmina ◽  
Suprehatin Suprehatin
Keyword(s):  
Transaction Costs ◽  
Transaction Cost ◽  
Analysis Method ◽  
Information Costs ◽  
Formal Institutions ◽  
Cost Component ◽  
Informal Credit ◽  
Average Value ◽  
Salted Fish ◽  
Credit Institutions

The growth and development of MSMEs are hampered due to capital constraints, so that MSMEs need other sources of capital to meet their business needs, one of which is with credit. In Muara Angke Traditional Fisheries Processing (PHPT) there are formal and informal credit institutions. The decision-making process of which credit institution will be chosen is determined by the processor's perception of the two institutions, where each institution will incur different transaction costs incurred by salted fish processors. The purpose of this study was to analyze the perceptions of salted fish processors on credit institutions and the amount of credit transaction costs incurred. The perceptual analysis uses the importance-performance analysis method and transaction costs are calculated using the transaction cost analysis method. The total sample of 72 salted fish processing business units in PHPT Muara Angke. The results showed that based on the criteria of processing perceptions of formal institutions better. This is indicated by the measurement of the average value of formal interests 4,48, the average value of the performance of formal institutions is 4,04 while the average value of the interests of non-formal institutions is 4,16 and the average value of the performance of non-formal institutions is 3,99. However, the transaction costs per loan period that must be issued by processors with formal credit (Rp 126.750) are greater than the transaction costs incurred by processors with non-formal credit (Rp 15.434). The largest transaction cost component informal credit is implementation costs (62,60 per cent), while informal credit is information costs (36,37 per cent).

scholarly journals ANALYSIS OF NON-BANK FINANCIAL INSTITUTIONS ACTIVITY AS PARTICIPANTS OF MODERN FINANCIAL SERVICES MARKET

2018 ◽  
pp. 88-94 ◽  
Author(s):  
Liudmyla Didenko ◽  
Inna Kobzar ◽  
Iryna Khanaliieva
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Banking System ◽  
Foreign Banks ◽  
Stable Operation ◽  
Credit System ◽  
Pension Insurance ◽  
Wide Range ◽  
State Pension ◽  
Credit Institutions

Banking system, that is, the National Bank of Ukraine, other banks and branches of foreign banks operating in the country, is the basis of the Ukrainian credit system. However, non-bank financial and credit institutions play an important role in the financial services market. Today they provide quite a wide range of services and thus become serious competitors for banks. Therefore, the study of the peculiarities of the activities of non-bank financial and credit institutions and their role in the economic growth of the state is an urgent problem for investigation. The article assesses the activities of the main non-bank financial institutions. The main indicators of the effectiveness of non-banking financial institutions in the context of the main segments of the modern financial services market are analysed. The problems that impede the development of the insurance services market, the non-state pension insurance market and the Lombard loan market are identified. It is concluded that it is an urgent necessary to solve the system problems in the financial services market in order to ensure its effective and stable operation in the future.

The Development of a Credit System in Seventeenth-Century Japan

1961 ◽  
Vol 21 (3) ◽  
pp. 342-360 ◽  
Author(s):  
Sydney Crawcour
Keyword(s):  
Economic Development ◽  
Seventeenth Century ◽  
Economic Life ◽  
Credit System ◽  
Commercial Development ◽  
Financial Innovations ◽  
Long Period ◽  
Credit Institutions

At the beginning of the seventeenth century, Japan was just emerging from a long period of internal strife and was beginning to settle down under a centralized feudal system introduced by the newly established Tokugawa government. In the following period of peace, economic development was very rapid. Along with commercial development and the monetization of important sections of the economy, a system of credit institutions evolved, notably in Osaka, which by the end of the century was not inferior to those existing in Europe at that time. The financial innovations and developments of the first half of the century were systematized in the latter half, and the resulting credit system became an indispensable part of Japan's economic life. In particular it played an important part in facilitating the spurt in Japan's economic development which occurred roughly between 1690 and 1740.

scholarly journals Central bank Digital Currencies: Key Characteristics and Directions of Influence on Monetary and Credit and Payment Systems

2019 ◽  
Vol 23 (4) ◽  
pp. 80-98 ◽  
Author(s):  
D. A. Kochergin ◽  
A. I. Yangirova
Keyword(s):  
Central Bank ◽  
System Integration ◽  
Balance Sheet ◽  
Central Banks ◽  
Credit System ◽  
Payment Systems ◽  
Credit Policy ◽  
Key Characteristics ◽  
New Form ◽  
Credit Institutions

The article is devoted to the study of prospects for digital currency issue by central banks as a new form of central bank money and to the potential of their influence on monetary and credit system. The aim of the article is to interpret and classify central bank digital currencies, to identify key characteristics of digital currencies and possible models of their issue, as well as to define the main directions of influence of digital currencies on the monetary and credit and payment systems. The scientific novelty of the article is in the systematization and comparison of different ideas about the implementation of sovereign digital currencies considering the use of distributed registry technologies. The study analyzed the projects of central banks on the issue of digital currencies and identified their features. Possible directions of influence of central bank digital currencies on the monetary and credit policy of the Central Bank and the activities of credit institutions were determined. It revealed that central bank digital currencies can be considered as a new form of money of the Central Bank, which can be issued to be used both in retail and in wholesale payments. Digital currencies may differ in some characteristics. The key ones are: a way to integrate into the monetary and credit system; emission technology; currency storage method; mechanism of mutual settlements and anonymity level. The study showed that the main incentives for introducing digital currencies are the possibility to provide an alternative and universally accessible legal means of payment, as well as to provide faster, more transparent and cheaper in-country and cross-border payments. The influence of digital currencies on the monetary and credit system and the monetary and credit policy of the Central Bank will largely depend on the scenario of their system integration. If cash is simply replaced in circulation by digital currencies, the effect on the Central Bank monetary and credit system and policy will not be significant. However, if central bank digital currencies are issued as an addition to cash, or are in parallel circulation, they can strengthen the transmission mechanism of the monetary and credit policy and increase the centralization of assets on the Central Bank balance sheet, as well as reduce the funding provided by credit institutions.

scholarly journals A Comparative Study between Informal and Formal Finance: A Literature Review

2019 ◽  
Vol 8 (4) ◽  
pp. 231
Author(s):  
Mai Ahmed Abdelzaher
Keyword(s):  
Rural Communities ◽  
Positive Impact ◽  
Credit System ◽  
Return On Assets ◽  
Private Companies ◽  
Informal Finance ◽  
Informal Credit ◽  
Asymmetrical Information ◽  
Predominant Form ◽  
Formal Finance

The informal credit system is a prevailing form of economic exchange in emerging countries. It is the predominant form of credit in rural communities because it is based on a culture of reciprocity (Family participation-relatives-Loyalty-friends-Neighbour). Informal finance contributes significantly to the growth of small and medium-sized enterprises (SMEs). The present study justifies the wide application of informal finance. We find that these projects suffer from the problem of asymmetrical information. They also offer few guarantees. Informal financiers have an advantage over formal financial organizations, in gathering information on lenders in SMEs. The aim of our study was to explore formal and informal credit systems and to explain the prevalence of informal systems in developing countries. The study concluded that credit from informal sources is superior to credit from formal sources because it results in low rates of default on loans. The study also showed that informal finance and commercial credit have a positive impact on the performance of private companies, measured using the rate of return on assets.

Sign in / Sign up

Export Citation Format

Share Document