Determinants of Interlinked Credit Contracts in Informal Agricultural Credit Market

2012 ◽  
Vol 3 (4) ◽  
pp. 100-104
Author(s):  
DR.S.GANDHIMATH DR.S.GANDHIMATH ◽  
◽  
G.Mookambigai G.Mookambigai
Keyword(s):  
Credit Market ◽  
Agricultural Credit ◽  
Credit Contracts

scholarly journals Rethinking Debt: The Evolution of Private Credit Markets in Preindustrial France

2018 ◽  
Vol 42 (2) ◽  
pp. 317-342 ◽  
Author(s):  
Elise M. Dermineur
Keyword(s):  
Eighteenth Century ◽  
Credit Markets ◽  
Credit Market ◽  
Court Records ◽  
Civil Court ◽  
Private Credit ◽  
Credit Contracts ◽  
Traditional Norms

This article focuses on traditional private credit markets in eighteenth-century France through the examination of notarized loan deeds and to a lesser extent civil court records. It examines in particular how credit markets functioned and how they developed in the eighteenth century. It argues that traditional credit markets featured norms of solidarity, cooperation, and fairness, and allowed considerable flexibility and input from both creditors and debtors. But in the middle of the eighteenth century, this market experienced several major changes. Not only did the volume of exchange and the number of notarized credit contracts dramatically increase, engendering a standardization of contracts and a greater resort to external institutions, but a new group of investors modified the traditional norms and practices of exchange. This article concludes that the private credit market shifted from an institution in which input, negotiation, and flexibility prevailed to a more rigid institution in which rules and rigor applied.

Information asymmetries and agricultural credit

2019 ◽  
Vol 79 (2) ◽  
pp. 217-233 ◽  
Author(s):  
Luis Felipe Zegarra
Keyword(s):  
Legal System ◽  
Credit Market ◽  
Primary Sources ◽  
Information Asymmetries ◽  
Agricultural Credit ◽  
Content Type ◽  
Access To Credit ◽  
Rural Credit ◽  
Collateral Evidence ◽  
Rural Credit Market

Purpose The purpose of this paper is to analyze the functioning of the rural credit market of Lima from 1825 to 1865, paying special attention to the effect of information asymmetries on the access to rural credit. Design/methodology/approach The article relies on primary sources for the study of the early credit market of Lima. In particular, the study relies on a sample of notarized loans for 1825–1865 and on property tax reports, collected from the National Archives of Peru, to determine the effect of information asymmetries, collateral and regional lending on access to credit. The article also analyzes the legal system of Peru during this period to determine whether property rights were well protected and so collateral could be used in the rural credit market. Findings A revision of the legislation shows that the legal system had some deficiencies, but allowed landlords and tenants to use their assets as collateral. Tax reports show that landlords and tenants owned valuable capital that could be used as collateral. Evidence from notarized loans shows that information asymmetries severely restricted inter-regional lending. In Lima, however, notaries played a role as financial intermediaries, providing the information about potential borrowers and allowing landlords and tenants to access credit. As a result, access to credit was significant for landlords and tenants. Originality/value This paper is one of the few historical studies on the role of information asymmetries in the allocation of rural credit in Latin America. It contributes to our understanding of credit markets prior to the creation of banks.

scholarly journals Indirect Factors Affecting Personal Solvency: Empirical Analysis Of Lithuanian Consumer Credit Market

2016 ◽  
Vol 12 (1) ◽  
pp. 157
Author(s):  
Daiva Jureviciene ◽  
Kamile Taujanskaite ◽  
Vytaute Sukacevskyte
Keyword(s):  
Scientific Literature ◽  
Consumer Credit ◽  
Evaluation Research ◽  
Credit Market ◽  
Literature Analysis ◽  
Statistical Software ◽  
Factors Affecting ◽  
Factors Influencing ◽  
Credit Contracts

The aim of this article is to analyze the interrelationship between solvencies of consumer credits customers and indirect factors such as borrowing motivation as well as demographical and socioeconomic factors characterizing the borrowers’ personality. The results of this research were obtained using statistical software SPSS. Systemic scientific literature analysis, correlation analysis of randomly selected records from consumer credit contracts, Student t-test criteria application for testing hypothesis, analysis of Levine's and Pearson’s correlation criteria are used in the article. In addition, previously carried out expert evaluation research results were compared with actual consumer credit contracts data. The novelty of this research is classification of factors influencing personal solvency into direct and indirect. The influence of indirect factors (demographic, socioeconomic and borrowing motives) has been investigated in risky consumer credit market of Lithuania. The results show that the most influencing indirect factor is the purpose of consumer credit.

scholarly journals Factors Affecting Use of Formal Agricultural Credit among Smallholder Farmers in Western Nepal

2021 ◽  
Vol 8 (4) ◽  
pp. 457-462
Author(s):  
B.P. Mishra
Keyword(s):  
Smallholder Farmers ◽  
Credit Market ◽  
Probit Model ◽  
Farm Size ◽  
Policy Recommendations ◽  
Agricultural Credit ◽  
Factors Affecting ◽  
Agriculture Sector ◽  
Ecological Regions ◽  
Key Policy

Formal agricultural credit is important for sustainable development of agriculture sector and national economy, particularly in developing countries. Yet, many smallholder farmers lack participation in formal credit market. An investigation was done during 2019 in two main agro-ecological regions (hill and terai region) of western Nepal. Probit model was used to identify the factors affecting the use of formal agricultural credit among smallholder farmers. The results revealed that use of formal agricultural credit increases with age, education, commercial nature of production, and collateral availability, and decreases with number of adult in household, farming experience and farm size. The study concludes with key policy recommendations. Int. J. Soc. Sc. Manage. Vol. 8, Issue-4: 457-462.

scholarly journals Agricultural Credit Market and Farmers’ Response: A Case Study of Turkey

2017 ◽  
Vol 5 (1) ◽  
pp. 84 ◽  
Author(s):  
Erdogan Gunes ◽  
Hormoz Movassaghi
Keyword(s):  
Interest Rates ◽  
Agricultural Sector ◽  
Credit Market ◽  
Well Being ◽  
Eligibility Criteria ◽  
Agricultural Credit ◽  
Access To Credit ◽  
Turkish Government ◽  
Private Banks ◽  
Credit Cooperatives

Agriculture is an important sector in Turkey’s economy. Access to credit financing is critical for timely acquisition of different inputs, farm productivity, and ultimately farmers’ financial well-being. Historically, Ziraat Bank and Agricultural Credit Cooperatives, supported by Turkish government, have been the principle supplier of loanable funds in the agricultural sector. However, since 2000, many private banks have discovered the potential of this market and entered the competition. This study was designed to investigate the structure of the agricultural credit market in Turkey and identify factors that influence farmers’ preference among alternative lenders. It was found that although the 550 Turkish farmers surveyed had several options among lenders, low interest rates and attainable eligibility criteria emerged as the most important differentiators among banks. Results from the Analytic Hierarchy Process (AHP) demonstrate the rising role of private banks’ credit. However, Ziraat Banks’ subsidized credits still dominant and its composite weight is 30.74% of total amount of agricultural credit market.

The Systemic Effects of Prudential Regulation Toughening:The Results of a Stress-test for Russian Banks

2012 ◽  
pp. 4-31 ◽  
Author(s):  
M. Mamonov ◽  
A. Pestova ◽  
O. Solntsev
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
Stress Test ◽  
Credit Market ◽  
Capital Adequacy ◽  
Government Support ◽  
Government Ownership ◽  
Prudential Regulation ◽  
The Government ◽  
The Stability

The stability of Russian banking sector is threatened by three negative tendencies - overheating of the credit market, significant decrease of banks capital adequacy ratios, and growing problems associated with banks lending to affiliated non-financial corporations. The co-existence of these processes reflects the crisis of the model of private investments in Russian banking sector, which was observed during the last 20 years. This paper analyzes the measures of the Bank of Russia undertaken to maintain the stability of the banking sector using the methodology of credit risk stress-testing. Based on this methodology we conclude that the Bank of Russias actions can prevent the overheating of the credit market, but they can also lead to undesirable effects: further expansion of the government ownership in Russian banking sector and substitution of domestic credit supply by cross-border corporate borrowings. The later weakens the competitive positions of Russian banks. We propose a set of measures to harmonize the prudential regulation of banks. Our suggestions rely on design and further implementation of the programs aimed at developing new markets for financial services provided by Russian banks to their corporate and retail customers. The estimated effects of proposed policy measures are both the increase in profitability and capitalization of Russian banks and the decrease of banks demand for government support.

“Land fever” and “Bankruptcy”: Social Problems in Hanoi’s Urbanizing Peri-urban Communities

2019 ◽  
Vol 5 (5) ◽  
pp. 550-562
Keyword(s):  
Rural Communities ◽  
Urban Communities ◽  
Agricultural Production ◽  
Social Problems ◽  
Social Issues ◽  
Field Research ◽  
Credit Market ◽  
Urbanization Process ◽  
Impact Of Urbanization ◽  
The Impact

Drawn upon field research in two peri-urban villages of Hanoi in 2014 and short re-visits recently, the research examines the widespread of gambling and other social issues in Hanoi’s urbanizing peri-urban communities which happened concurrently with the phenomenon of “land fever,” and at the time local villagers received compensation from land appropriation. The article aims to understand the impact of urbanization on these communities and the interface between urbanization and the increase of social problems. It argues that gambling, drug use, and other social problems have been existing in Vietnamese rural communities long before; however, when urbanization came, some people have higher chances to engage in these activities. Those are villagers who want to transform quickly into entrepreneurs or bosses by joining the “black credit” market and gambling. Together with middle-aged and old farmers who greatly relied on agricultural production and face difficulties in transforming their occupation, they formed the group of losers in the urbanization process. Received 6th January 2019; Revised 26th April 2019; Accepted 15th May 2019

Sign in / Sign up

Export Citation Format

Share Document