scholarly journals The bank approach to a credit obligor – a farm business – in the context of credit risk and capital adequacy

2012 ◽  
Vol 48 (No. 9) ◽  
pp. 395-398
Author(s):  
H. Sůvová
Keyword(s):  
Credit Risk ◽  
Small And Medium Enterprises ◽  
Capital Adequacy ◽  
Financial Risks ◽  
Agricultural Enterprises ◽  
Bank Management ◽  
New Basel Capital Accord ◽  
Bank For International Settlements ◽  
Medium Enterprises ◽  
Farm Business

The objective of this paper is to enable a bank’s view towards a credit obligor. Banks are subject to a lot of financial risks. Credit risk is the most important one. Banks also have to manage the objective of maximum profit on one hand, the prudential rules on the other hand. Recently, the Bank for International Settlements submitted a new concept of prudential rules (The New Basel Capital Accord) that should be accepted by national regulators and applied from 2006/7. This concept brings relatively strict conditions which should improve bank management of credit risk but which are unpleasant for loaning of small and medium enterprises including agricultural ones that are mostly part of this category. Very important role will be still played by non-market supporting instruments, especially guarantees provided by sovereigns. They can improve the competitiveness of agricultural enterprises in the credit market.

ANALISIS TINGKAT KESEHATAN KOPERASI PADA KOPERASI SYARIAH BAITUL QIRADH SURYA MADINAH BANDA ACEH TAHUN BUKU 2009-2010

2014 ◽  
Vol 2 (1) ◽  
Author(s):  
Aliamin
Keyword(s):  
Small And Medium Enterprises ◽  
Health Assessment ◽  
Capital Adequacy ◽  
Financial Ratios ◽  
Microfinance Institutions ◽  
Descriptive Research ◽  
Capital Ratios ◽  
Capital Financing ◽  
Asset Quality ◽  
Medium Enterprises

             The health assessment of Microfinance Institutions (MFIs) is a cooperative incorporated descriptive research study that aims to get the description of health BQ Surya Madinah (Islamic MFIs). The period for this study was raised in 2009 and 2010. The guidelines for use of cooperative health assessment, formulated by the Ministry of Cooperatives and Small and Medium Enterprises Republic of Indonesia, which poured through the Minister's decision No. 35.3/Per/M.KUKM/X/2007 for cooperative health assessment sharia. In a co-operative health assessment consists of eight aspects of sharia that aspects of capital valuation, asset quality, management, efficiency, liquidity, and growth kemadirian, cooperative identity, sharia compliance. However, in this study only four financial ratios studied the aspects of capital, asset quality, liquidity, and the independence and growth.             The results calculation (score) of each component aspect ratio shows the ratio of the components are not all aspects can be expressed well, only three ratios that can yield the best assessment of the capital adequacy ratio of the given conclusion score "HEALTHY" financial ratios for the funds received were conclusions scores "LIQUID" profitability and capital ratios are given conclusion score "HIGH".To obtain better achievements in the future, it requires a proper measures to raise awareness of all members of the cooperative to jointly participate in the implementation of cooperative activities, either in the form of capital, financing and deposits. Key words: health assessment, Islamic MFIs, and BQ Surya Madinah 

scholarly journals The impact of risks on small and medium enterprises in the region of Sebha- Libya 2010- 2019: إدارة المخاطر المالية وأثرها على المشروعات الصغيرة والمتوسطة بمنطقة سبها – ليبيا- 2010- 2019م

2021 ◽  
Vol 5 (22) ◽  
pp. 143-114
Author(s):  
Mohammed Elnagi Elgafari, Ehmaid Abu Khanger Mohammed Algoha Mohammed Elnagi Elgafari, Ehmaid Abu Khanger Mohammed Algoha
Keyword(s):  
Random Sample ◽  
Small And Medium Enterprises ◽  
Simple Random Sample ◽  
Financial Risks ◽  
Quantitative Methodology ◽  
Medium Enterprises ◽  
The Impact ◽  
Descriptive Method

The study aimed to identify the reality of the small and medium enterprises in Libya and the role of financial risks management in the success of these projects. The study followed the historical descriptive method and the quantitative methodology. The data were collected by means of a questionnaire, distributed to a simple random sample of small and medium enterprises, and analyzed through the SPSS program. The study found that, the lack of liquidity and the risk of repayment of loans come at the forefront of the financial risks affecting small and medium enterprises in the region of Sabha in Libya. The most important recommendations of the study: the need to develop the strategy of small and medium enterprises, after a careful and realistic analysis of its environment. Develop a realistic strategy for projects, taking into account the risks faced by these enterprises.

scholarly journals JAPAN’S EXPERIENCE IN USING ANALYTICS OF BIG DATA TO REDUCE CREDIT RISK IN FINANCING SMALL AND MEDIUM ENTERPRISES

2019 ◽  
pp. 182-187
Author(s):  
S. Matveevskii
Keyword(s):  
Big Data ◽  
Credit Risk ◽  
Data Analytics ◽  
Small And Medium Enterprises ◽  
Big Data Analytics ◽  
Subject Area ◽  
Development Bank ◽  
Financial Model ◽  
Bank Account ◽  
Medium Enterprises

The experience of Japanese experts in using big data analytics to reduce credit risk when financing small and medium-sized enterprises has been reviewed. Three multiple regression models were used to predict the likelihood of medium-sized enterprises default. The results of the study have showed, that the bank account model complements the financial model well, which will allow credit organizations to increase lending to medium-sized enterprises. It has been concluded, that the use of big data analytics requires the development of an information model of the subject area, which will provide a significant improvement in lending to medium-sized enterprises in Russia. The experience of the Asian Development Bank in researching the activities of medium-sized enterprises shows the practical possibility of using big data analytics by any development bank.

scholarly journals Construction and Application of the Online Finance Credit Risk Rating Model Based on the Artificial Neural Network

2021 ◽  
Vol 2021 ◽  
pp. 1-11
Author(s):  
Yufeng Mao ◽  
Zongrun Wang ◽  
Xing Li ◽  
Chenggang Li ◽  
Hanning Wang
Keyword(s):  
Neural Network ◽  
Credit Risk ◽  
Early Phase ◽  
Small And Medium Enterprises ◽  
Low Cost ◽  
Late Phase ◽  
Credit Risk Management ◽  
Risk Rating ◽  
Medium Enterprises ◽  
Rating Model

The low-cost, highly efficient online finance credit provides underfunded individuals and small and medium enterprises (SMEs) with an indispensable credit channel. Most of the previous studies focus on the client crediting and screening of online finance. Few have studied the risk rating under a complete credit risk management system. This paper introduces the improved neural network technology to the credit risk rating of online finance. Firstly, the study period was divided into the early phase and late phase after the launch of an online finance credit product. In the early phase, there are few manually labeled samples and many unlabeled samples. Therefore, a cold start method was designed for the credit risk rating of online finance, and the similarity and abnormality of credit default were calculated. In the late phase, there are few unlabeled samples. Hence, the backpropagation neural network (BPNN) was improved for online finance credit risk rating. Our strategy was proved valid through experiments.

scholarly journals The role of mediation resources in the operation and development of knowledgeintensive small and medium enterprises

2016 ◽  
pp. 109-113
Author(s):  
Tamás Köpeczi-Bócz ◽  
Mónika Lőrincz
Keyword(s):  
Small And Medium Enterprises ◽  
Tertiary Education ◽  
Financial Risks ◽  
Funding Sources ◽  
Innovation Activities ◽  
Knowledge Intensive ◽  
Medium Enterprises ◽  
The University ◽  
Major Emphasis

Address social and economic processes of social capital system between universities and the business sector – because of their special and similar characteristics – major emphasis will be displayed. Knowledge-intensive companies would be hard to imagine functioning without established links with tertiary education institutions and universities can now functions would be unthinkable without displaying the corporate sector sectoral specificities of knowledge and strategies of the university. Because of the development of knowledge-intensive business activities based on innovation-oriented economic development which are specific to innovative SMEs, funding sources and opportunities. In a typical operating environment of innovation, with sectoral, spatial and temporal factors are constantly changing. These factors are decisive elements in the innovation opportunities, and through this indirectly the success of these enterprises. The resources involved in mediating the markets perceive a high risk to price this innovation activities and their funding. Under the study to try to answer that by optimizing the functions of universities, how and in what form they may have a role in mitigating financial risks.

scholarly journals Assessment of trade credit risk in business companies

2014 ◽  
pp. 133-148
Author(s):  
Jūratė Každailienė ◽  
Dalia Daujotaitė
Keyword(s):  
Credit Risk ◽  
Trade Credit ◽  
Small And Medium Enterprises ◽  
Business Development ◽  
Debt Ratio ◽  
Financial Indicators ◽  
Economic Sectors ◽  
Net Profit ◽  
Medium Enterprises ◽  
Key Indicators

The article‘s topic is relevant, because the importance of trade credit constantly increases. Trade credit can be one of the most important preconditions for the competitiveness of the enterprise and business development. There is a lack of scientific sources in the field of estimation of trade credit risk – there is no any particular, simple to use methodology to assess company trade credit risk. The aim of the article – to compose a methodology of assessment company trade credit risk for Lithuanian small and medium enterprises. In the article, following scientific sources approach, the advantages, risks and key financial and non-financial trade credit risk factors were identified. Based on the scientific sources and expert evaluation, the methodology of company trade credit risk assessment was created. The methodology is based on 10 key indicators identified by the experts. 12 financial ratios and non-financial indicators are being used – current and quick ratio, gross and net profit margin, Altman Z model, debt ratio, stock and debtors turnover, enterprise age, reputation, number and dynamics of employees. The indicators have been scored. The highest possible score is 100. The research approves that the methodology suits to be used in practice. It is simple, reliable, cheap, non-time consuming; it is easy to collect data, the data is being formalized and quantified. The disadvantages of methodology – the data is not always reliable and some ratios are of different importance in the different economic sectors. The methodology should be modified to adapt for the different sectors of business.

scholarly journals The Quantitative Analysis and Decision-making of MSMEs’ Credit Risk

2021 ◽  
pp. 19
Author(s):  
Keyword(s):  
Decision Making ◽  
Quantitative Analysis ◽  
Credit Risk ◽  
Small And Medium Enterprises ◽  
Risk Index ◽  
Original Data ◽  
Entropy Weight ◽  
De Algorithm ◽  
Medium Enterprises ◽  
The Relationship

In this study, we focused on the quantitative analysis and decision-making of credit risk of the Micro, Small and Medium Enterprises (MSMEs) from the perspective of bank. Based on the data of 123 MSMEs, we extracted and processed information from the original data with theoretical analysis and feature engineering, and established an entropy weight-TOPSIS model to get the credit risk index of each MSME. Meanwhile, the credit strategy optimization model was constructed, and the DE algorithm was used to solve the credit strategy scheme for bank to each MSME. According to the relationship between the total annual credit of bank, interest rate and expected profit, we analyzed the partial sensitivity of the model and explored the maximum profitability of the bank and finally gave helpful suggestions. Our results have guiding significance for banks to manage and make decisions on the credit risk of MSMEs.

scholarly journals Financial impediments in risk management mechanisms of Greek Small and Medium Enterprises

2017 ◽  
Vol 12 (1) ◽  
pp. 3128-3152
Author(s):  
ANDREAS KARAOULANIS
Keyword(s):  
Risk Management ◽  
Small And Medium Enterprises ◽  
Research Question ◽  
Societal Implications ◽  
Financial Risks ◽  
Political Climate ◽  
Face To Face ◽  
Long Run ◽  
The Right ◽  
Medium Enterprises

Micro Small and Medium Enterprises (SMEs) in contemporary Greece have difficulties in overcoming their financial risks via the use of their risk management mechanisms. The main reason for this failure is the presence of several financial impediments which prevent such risk management mechanisms to perform efficiently enough. So, the aim of this research is to unveil these financial impediments while the research question is “What are the financial impediments that interfere with the Greek SMEs’ risk management mechanisms?”   The method that was used was the survey one by the use of questionnaires which were distributed face to face and by email. The data was analyzed by the use of the Dedoose software following a qualitative approach. The findings showed that the SMEs that were investigated used only informal and non- sophisticated risk management mechanisms, while the financial impediments that prevented such mechanisms to operate efficiently enough were the general unstable financial and political climate, the capital controls and the SMEs’ limited access to bank financing. The results of this research can have very important societal implications as they can show to SMEs’ owners the importance of the implementation of the right risk management mechanisms, something which can lead them to sustainable development and to general societal prosperity on the long run. Keywords Financial impediments, risk management, SMEs, Greece.

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