scholarly journals Linkage of Credit on BI Rate, Funds Rate, Inflation and Government Spending on Capital

JEJAK ◽  
2017 ◽  
Vol 10 (1) ◽  
pp. 1-11
Author(s):  
Mangasa Augustinus Sipahutar ◽  
Rina Oktaviani ◽  
Hermanto Siregar ◽  
Bambang Juanda
Keyword(s):  
Government Spending ◽  
Commercial Banks ◽  
Inflation Rate ◽  
Monetary Transmission ◽  
Var Model ◽  
Credit Channel ◽  
Transmission Channel ◽  
Credit Portfolio

Linkage of credit on BI rate, funds rate, inflation, and government spending on capital provides evidence from Indonesia. This paper found advance explanation about banks credit as monetary transmission channel and its role on Indonesian economy. We used credit depth as a ratio of banks credit to GDP nominal, to explain the role of credit in Indonesian economy. We developed a VAR model to measure the response of credit to BI rate, funds rate and inflation rate, and OLS method to find out how banks credit response to government spending on capital. This paper revealed bi-direction causality between credit and BI rate, credit and funds rate, and credit and inflation. There is trade-off between credit and BI rate, credit and funds rate, and credit and inflation, but government spending on capital promotes credit depth. We found that Indonesian banking is bank view, allocated their credit based on their performance, not merely on the monetary policy determined by central bank. For bank view perspectives, we analyzed the link between LDR as an indicator of credit channel mechanism to NPLs and CAR. We found that there is no significant effect of CAR to LDR, but has a strong negatively relationship between NPLs to LDR. This evidence indicates that commercial banks in Indonesia allocated their credit do not related to their capital but merely to the quality of their credit portfolio.

scholarly journals Standard of living, quality of life and per capita GDP: a South African experience

2013 ◽  
Vol 11 (1) ◽  
pp. 882-889 ◽  
Author(s):  
Raphael Tabani Mpofu
Keyword(s):  
Quality Of Life ◽  
South Africa ◽  
Human Development ◽  
Government Spending ◽  
Government Expenditure ◽  
Standard Of Living ◽  
Role Of Government ◽  
Per Capita

This study looked at the phenomenon of the quality of life (QoL) as measured by the Human Development Index (HDI), which is a composite statistic used to rank countries by the level of “human development”. Measuring and determining what is QoL is not an easy task. In this study, using HDI as the yardstick for QoL, the concepts of standard of living and per capita income were examined closely in relation to the role of government in its public expenditure programmes and how these programmes in turn influenced QoL. This research question was seen as the key to addressing the phenomenon of QoL. In particular, the role of government expenditure on health and education seems to signify the commitment of a government in improving the HDI or QoL. Using data on government expenditure of South Africa for the period 1995 to 2011, the relationships amongst these variables were examined. The findings indicate that there seems to be a significant correlation between HDI and government spending on health and education as a percentage of GDP, but there seems to be of no significance to include the variable government spending on health and education as a percentage of total government spending. The findings tell us that between 1995 and 2011, government spending on education as a percentage of GDP has had a positive impact on HDI. However, government spending on health as a percentage of GDP has had a retarding effect as shown by the negative coefficient of variation. It then implies that for South Africa to realize the MDG goals and improve on the HDI, public spending on health as a percentage of GDP needs to be significantly increased.

How Credit Portfolio Diversification Affects the Profitability of Vietnamese Commercial Banks

2020 ◽  
pp. 237-255
Author(s):  
Huynh Viet Khai ◽  
Phan Thi Anh Nguyet ◽  
Phan Dinh Khoi ◽  
Chu Van Nam
Keyword(s):  
Least Squares ◽  
Commercial Banks ◽  
Inflation Rate ◽  
Generalized Least Squares ◽  
Portfolio Diversification ◽  
Credit Growth ◽  
Positive Correlation ◽  
Credit Portfolio ◽  
The Impact

This study analyzed the impact of credit portfolio diversification on the profitability by using the data of 20 Vietnam commercial banks from 2009 to 2015. The results from feasible generalized least squares (FGLS) estimation show that the strategy of diversifying the credit portfolio increased the profitability of commercial banks. In addition, the study also indicates that the positive correlation of the ratio of owners' equity, credit growth, liquidity, assets, inflation rate with the profitability while the increase in non-performing loan decreased the profitability of these commercial banks.

scholarly journals A Framework for Macro Stress-Testing the Credit Risk of Commercial Banks: The Case of Vietnam

2018 ◽  
Vol 14 (2) ◽  
pp. 1
Author(s):  
Oanh T. K. Vu ◽  
Yen H. Vu ◽  
Trang T. T. Nguyen ◽  
Trung H. Bui
Keyword(s):  
Credit Risk ◽  
Commercial Banks ◽  
Stress Testing ◽  
Inflation Rate ◽  
Var Model ◽  
Macroeconomic Shocks ◽  
Real Gdp ◽  
Set Up ◽  
Macro Variables ◽  
The Relationship

In this paper, we assess the capacity of Vietnamese commercial banks to withstand the effects of an increase in credit risk as a result of macroeconomic shocks. Firstly, VAR model is used to estimate the relationship among macro variables (real GDP, real exchange rate, lending interest rate and inflation rate) and from that, macroeconomic scenarios are set up. Next, we employ a GMM model to estimate the relationship between the non-performing loan ratio (credit risk) and macro variables involved in first step. Finally, the new capital requirement ratio (CAR) is recalculated, which is based on the increase in loan provision followed by the rise in non-performing loan. The results show that credit risk which the commercial banks have to face is relatively limited when their risk weighted assets are unchanged. If these numbers, however, increase as banks broaden their lending, all banks’ CAR will reduce remarkably and four large banks will be lack of capital seriously and cannot meet the requirement of Central Bank.

scholarly journals The role of Information Technology in enhancing the quality of banking service

2018 ◽  
pp. 199
Author(s):  
Wafaa M. Fakhri
Keyword(s):  
Information Technology ◽  
Significant Relationship ◽  
Commercial Banks ◽  
Quality Of Services ◽  
Banking Services ◽  
Banking Service ◽  
Role Of It ◽  
Role Of Information

The study  seeks to  study the  role of IT in achieving the  quality of  banking services provided by commercial banks, which requires knowledge of the level of information technology that is used and the extent of employees' awareness of the quality of the importance of the quality of services provided to customers with government banks. The questionnaire was distributed to (60) employees of the branches of the Rafidain Bank for the province of Salah al-Din, from which 51 samples were returned to be valid for analysis. . The study concluded that there is a significant relationship between the information technology and the quality of banking services

scholarly journals Real Effective Exchange Rate: A Transmission Channel for the Impact of Economic Growth on Exports in Vietnam

2016 ◽  
Vol 23 (01) ◽  
pp. 121-136
Author(s):  
Hiep Nguyen Quang ◽  
Nha Nguyen Thi
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Positive Impact ◽  
Real Effective Exchange Rate ◽  
Var Model ◽  
Transmission Channel ◽  
Effective Exchange ◽  
Effective Exchange Rate ◽  
The Impact

This article analyzes the role of real effective exchange rate as a transmission channel for the impact of economic growth on Vietnam’s exports. Using quarterly data for the period of 1994–2013, the analysis results show that economic growth, real effective exchange rate (REER), and exports tend to fluctuate in the same direction. Furthermore, according to the results of the VAR model, economic growth impacts on and promotes export growth through increased productivity that improves the competitive advantage of products. The exchange rate, as an important channel, allows for a positive impact of economic growth on exports in Vietnam.

scholarly journals MINIMIZING CREDIT RISK AND IMPROVING THE QUALITY OF THE CREDIT PORTFOLIO OF THE COMMERCIAL BANK

2017 ◽  
pp. 18-23
Author(s):  
O. M. Ermolenko
Keyword(s):  
Credit Risk ◽  
Foreign Banks ◽  
Credit Policy ◽  
Loan Portfolio ◽  
Financial Uncertainty ◽  
Main Factors ◽  
Lending Activity ◽  
Credit Portfolio

The article examines the main factors shaping the credit risk and defines the role of credit risk in the process of formation of a credit portfolio of commercial banks. In conditions of instability and financial uncertainty, credit institutions are faced with risks, including credit, because credit operations occupy the largest share in their activities. The quality of loan portfolio determines the capabilities of the Bank in its functioning on the market of credit products, which affects the level of lending activity and the possibility of recovery in the credit market. The process associated with the loans is determined by the credit quality of the banks. Statistics data of the operation activities of commercial domestic and foreign banks suggests that a well-organized loan process, efficiently formed loan portfolio and conduct credit policy, the Bank will provide prosperity in the future.

scholarly journals Determinants which Affect Liquid Asset Ratio of Czech and Slovak Commercial Banks

2013 ◽  
Vol 4 (1) ◽  
pp. 25-41 ◽  
Author(s):  
Pavla Vodová
Keyword(s):  
Commercial Banks ◽  
Slovak Republic ◽  
Capital Adequacy ◽  
Macroeconomic Factors ◽  
Liquid Asset ◽  
Panel Data Regression ◽  
Data Regression ◽  
Specific Factors ◽  
Credit Portfolio

The aim of this paper is to find out determinants which affect liquid asset ratio of Czech and Slovak commercial banks. The data cover the period from 2001 to 2010. We consider four bank specific factors and nine macroeconomic factors. Results of panel data regression analysis showed that although Czech Republic and Slovak Republic have a lot in common, different factors determined banks´ liquid assets in individual countries. The liquid asset ratio of Czech banks increases with increase of capital adequacy, with depreciation of Czech koruna and with worsening quality of credit portfolio. Liquidity of Slovak banks decreases with size of the bank, with higher capital adequacy, higher bank liquidity and during periods of financial crisis. Liquidity of Slovak banks is also positively related to economic cycle.

Consequences of the Crisis and Prospects of Russia´s Social and Economic Development

2011 ◽  
pp. 4-19 ◽  
Author(s):  
A. Kudrin ◽  
O. Sergienko
Keyword(s):  
Government Spending ◽  
World Economy ◽  
Investment Climate ◽  
State Institutions ◽  
Russian Economy ◽  
Role Of The State ◽  
Social And Economic Development ◽  
Innovation Sector

The article considers factors of crisis development of the Russian economy. It is stated that the stage of rapid recovery of the world economy after the crisis has come to an end. Still many countries face signs of overheating. In order to modernize the Russian economy needs better investment climate, developed innovation sector, less support of inefficient enterprises. It is important to improve the quality of state institutions, raise the efficiency of government spending, and limit the role of the state in the economy.

scholarly journals The Effect of Organizational Agility on Quality of Work Life: A Study on Commercial Banks in Egypt

2016 ◽  
Vol 11 (6) ◽  
pp. 271
Author(s):  
Nafei A. Wageeh
Keyword(s):  
Decision Making ◽  
Commercial Banks ◽  
Occupational Safety ◽  
Work Life ◽  
Quality Of Work Life ◽  
Quality Of Work ◽  
Safety And Health ◽  
The Relationship

<p><strong>Purpose: </strong>The purpose of this research is to identify the types of OA (sensing agility, decision-making agility and acting agility) and its role in promoting Quality of Work Life (QWL) of the employees at commercial banks in Egypt.</p><p><strong>Research Design/Methodology:<em> </em></strong>To assess positive OA refer to (OA questionnaire, Jaworski, &amp; Kohli, 1993) and QWL (QWL survey Seashore et al., 1983; Cammann et al., 1983; National Institute for Occupational Safety and Health, 2002) are used. The data of the study was collected from the employees at commercial banks in Egypt. Out of the 382 questionnaires that were distributed to employees, 325 usable questionnaires were returned, a response rate of 85%. Multiple Regression Analysis (MRA) was used to confirm the research hypotheses.</p><p><strong>Findings:</strong> It has been paid to how OA factors have an impact on QWL. In other words, sensing agility, decision-making agility and acting agility significantly correlated with QWL. The study findings support the view that OA and QWL are related constructs. In other words, the research has found that the study subjects do agree that OA directly affects the dimensions of QWL of the employees at commercial banks in Egypt involved in the current study.</p><p><strong>Practical implications:</strong> The study suggests that at commercial banks in Egypt can improve QWL by influencing its OA, specifically, by developing sensing agility, decision-making agility and acting agility. The study provided that it is necessary to pay more attention to the dimensions of OA as a key source for organizations to enhance the competitive advantage which is of prime significance for QWL.</p><strong>Originality/value: </strong>The study observes that there is a critical shortage of OA and that a greater understanding of the factors that influence the QWL. Therefore, this study examines the relationship between OA and QWL among employees at commercial banks in Egypt. This research dealt with OA in terms of its concept and dimensions, in addition to dealing with the role of OA in promoting QWL at commercial banks in Egypt.

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