APPLICATION OF CASH RECYCLING TECHNOLOGY TO OPTIMIZE THE CREDIT POLICY OF A COMMERCIAL BANK FOR IMPROVING WELFARE OF THE RURAL POPULATION

2020 ◽  
Vol 5 (86) ◽  
pp. 115-122
Author(s):  
N.V. Alentieva ◽  
◽  
◽  
Keyword(s):  
Commercial Bank ◽  
Rural Population ◽  
Banking Sector ◽  
Financial Institution ◽  
The United States ◽  
Functional Requirements ◽  
Credit Policy ◽  
The World ◽  
Recycling Technology ◽  
In Transit

The article reveals and analyzes the advantages of ATMs with the function of cash recycling to improve welfare of the rural population. The bank's credit policy is based on the basis for the entire lending process, which determines its objective parameters and features. Its main goal is to maximize profits while minimizing potential risks. In the world market, the use of recycling technology in the banking sector remains in demand. Its use ensures constant availability of banknotes in the ATM, and this allows ATM to work for a long time without stopping for cash-in-transit services, which is a significant advantage for users. At present, the technology of cash recycling is a promising direction in the field of self-service banking and has a huge potential for its development. Due to the increase in the number of such devices,banking services are becoming available to potential consumers. The credit policy of a commercial bank in this direction provides an opportunity to attract a larger number of clients, at relatively low operating costs. ATMs with a cash recycling function are widely used in European countries, Japan, South Korea, and the United States. In Russia, such first ATMs appeared about 15 years ago, but due to their high cost, not every financial institution can use them in their work. The demand for ATMs with cash recycling is growing steadily around the world. Now, when it has become clear that ATMs with recycling function can reduce the costs of cash-in-transit serices, many banks when buying terminals include recycling in the list of basic functional requirements for new equipment. These technologies will allow financial organizations to save time on equipment maintenance and optimize costs.

Challenges of COVID-19 During 2020 and Opportunities for FinTech in 2021 for Digital Transformation of Business and Financial Institutions in India

2021 ◽  
pp. 282-299
Author(s):  
Narinder Kumar Bhasin ◽  
Kamal Gulati
Keyword(s):  
United States ◽  
Financial Institutions ◽  
Job Loss ◽  
Banking Sector ◽  
Extended Period ◽  
The United States ◽  
Emerging Technology ◽  
Digital Transformation ◽  
The World ◽  
Technology Trends

Fintech/TechFin/financial and banking sector achieved the new digital disruptions and transformation milestones in India, underlining the various opportunities in the last year, 2020, when the world was struggling with the COVID-19 pandemic, an extended period of lockdown, job loss, and unemployment. India has emerged as the fastest-growing second largest leading fintech hub in the world after the United States. This chapter will explain the various challenges faced in the year 2020 and opportunities for fintech in 2021. The chapter also explains the emerging technology trends and growth of finechs in India during the COVID pandemic.

Municipal-owned community bank: capital raising dilemma

2019 ◽  
Vol 9 (2) ◽  
pp. 1-23
Author(s):  
Tobias Aloisi Swai
Keyword(s):  
Commercial Bank ◽  
Financial Services ◽  
Banking Sector ◽  
Financial Institution ◽  
Order Theory ◽  
Individual Investors ◽  
Bank Capital ◽  
Regulatory Capital ◽  
Content Type ◽  
Community Bank

Learning outcomes The case introduces student to basic understanding of banking sector in Tanzania as well as the strategies and struggle to raise capital through shareholders’ funds. Application of Banking theory and Pecking order theory is evidenced from the case. The case outlines why the bank struggled to raise capital and what triggers the capital raising strategies. It also give students an opportunity to think about applicable theories of capital structure and bank capital, and strategies the bank could use to rescue its capital crunch in the future. Case overview/synopsis The case provides details of how the Capital Community Bank (CCB) raised its capital through strategic financial engineering which enabled it to raise the minimum regulatory capital required to be licensed as a financial institution unit, to a regional financial institution, to a fully fledged commercial bank. The bank started with a paid up capital of TZS 472.3m in 2002, involving four Local Government Authorities and individual investors. Capital raised to TZS 31.3bn in 2014 and down to TZS 20.6bn at the end of 2016. The minimum regulatory capital required is TZS 15bn, while paid up capital was 16.9bn. With the change of the management team in 2017, the bank is looking for avenues to raise further capital to meet the regulatory limits and continue to survive as a commercial bank, given dramatic changes in the banking sector in Tanzania. Complexity academic level The case is suitable for third year students in Bachelor of Commerce/Economics specializing in banking/financial services. It also suits postgraduate/master's students seeking a Postgraduate Diploma or Master of Business Administration in financial institutions/banking course. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 1: Accounting and Finance.

scholarly journals A Russian Bank in the Khanate of Khiva of NovoUrgench Branch of the Russo-Asiatic Commercial Bank

2020 ◽  
Vol 65 (3) ◽  
pp. 790-803
Author(s):  
Bakhtiyor A. Alimdjanov ◽  
◽  
Denis G. Yanchenko ◽  
◽  
Keyword(s):  
World War I ◽  
Commercial Bank ◽  
Financial Services ◽  
Banking Sector ◽  
Financial Institution ◽  
Stock Exchange ◽  
Unique Character ◽  
Central Russia ◽  
The Russian Empire ◽  
Russian Bank

Cotton farming, being one of the leading branches of economic activity of Turkestan of the beginning of the 20th century, attracted the attention of big investors of the Russian Empire. This article examines functioning of the Novo-Urgench branch of the Russo-Asian commercial bank (RACB) on the basis of the material from Russian State Historical Archive (RGIA): successful and unsuccessful operations, organizational structure, interaction with clients, and its influence on the regional market. The unique character of this branch of one of the largest Russian banks lay in that fact that it was the only lending and financial institution that expanded its operations throughout the entire oasis of Khiva, including territories that were under control of the Khan of Khiva. Both local political and economic elites and entrepreneurs from Central Russia were clients and partners of the Novo-Urgench branch of the bank. Wide-spread liaisons allowed the institution to promptly conquer and maintain, even under conditions of a crisis, its niche on the market of financial services in Central Asia. On the threshold of the World War I, the bank attempted to monopolize cotton farming, working with big clients and even stimulating development of the processing industry. Novo-Urgench branch of the Russo-Asian bank provided help to the local merchantry trying to increase export of raw cotton and to enter both Russia-wide and international markets. For the objective reasons of shortage of liquid assets, underdeveloped infrastructure of the region, swings in stock-exchange and problems with human resources, the Novo-Urgench branch of the Russo-Asiatic bank could not capture and control the Khivan market. During the war years, the Central Asian periphery was under the influence of the problems characteristic of not only the banking sector, but Russian economy as a whole.

Problems of lending and innovative ways to improve the financial regulation of commercial banks

2020 ◽  
Vol 6 (Extra-B) ◽  
pp. 267-278
Author(s):  
Elena A. Ivanova ◽  
Alexey A. Golovin ◽  
Alina A. Kamalova ◽  
Bulat T. Gali ◽  
Vladimir V. Nosov ◽  
...  
Keyword(s):  
Commercial Bank ◽  
Commercial Banks ◽  
Banking Sector ◽  
Financial Regulation ◽  
Financial Institution ◽  
Financial Risks ◽  
Russian Economy

The relevance of the study is determined by the fact that at present in the activities of every commercial bank the problem of financial risks, deposit policy and activation of instruments for attracting and retaining existing deposit sources in the context of the crisis of the Russian economy is very urgent. Among other things, this problem is caused by the need for stabilization in the banking sector, based on preventing the outflow of funds from the deposit accounts of customers, which in turn leads not only to a decrease in liquidity and solvency indicators, but also to the subsequent potential bankruptcy of a financial institution.    

scholarly journals Tingkat Keuntungan Bank di Indonesia setelah Krisis Subprime 2008 di Amerika Serikat

2018 ◽  
Vol 3 (2) ◽  
Author(s):  
Pandu Adi Cakranegara
Keyword(s):  
Stock Returns ◽  
Stock Prices ◽  
Banking Sector ◽  
Financial Statements ◽  
The United States ◽  
Operational Performance ◽  
Economic Downturn ◽  
Subprime Mortgage ◽  
Financial Report ◽  
The World

Subprime Mortgage in America has a wide impact on the world including Indonesia. The researcher examines its relationship with banks in Indonesia. The economic downturn in the United States will have an impact on the global economic downturn. Thus, the Indonesian economy will also be affected. If there is an economic downturn, the financial sector in this case is represented by the banking sector, which will first decrease its value. The analysis used uses the method of analyzing financial statements. Based on the data from the Audited Financial Report, the banking sector growth and operational performance can be analyzed. The results found were the linkage of Du Pont's Stock Returns and ROE. High ROE will result in rising stock prices on the market. Nevertheless, market appreciation for each bank is not the same because there are banks that are more appreciated by the market or conversely there are banks that are not appreciated as high as other banks.

scholarly journals FEATURES OF FORMATION OF CREDIT POLICY AND CREDIT PORTFOLIO OF COMMERCIAL BANK IN MODERN CONDITIONS

2021 ◽  
Author(s):  
Natalia Ostrovska
Keyword(s):  
Commercial Bank ◽  
Banking Sector ◽  
Cash Flows ◽  
Bank Loan ◽  
Economic Conditions ◽  
Credit Policy ◽  
Loan Portfolio ◽  
Loan Market ◽  
Modern Economic ◽  
Banking Institution

The level of development of production, social infrastructure and the degree of development of society as a whole largely depends on how developed the banking sector of the state is. An important role in fulfilling the tasks is assigned to commercial banks, which can provide credit resources to enterprises and organizations, as well as citizens. In addition, an efficient and stable banking sector is a key factor in the growth of the national economy. The purpose of the article is to determine the features of the formation of credit policy and loan portfolio of a commercial bank in modern economic conditions. The article identifies the features of the formation of credit policy and loan portfolio of a commercial bank in modern economic conditions. It is generalized that the main specific features of credit relations are: their emergence at the stage of redistribution of final income; formation on the basis of return and with the payment of interest; impact on the structure and volume of cash flows and features of the bank loan market. It is proved that the study of the bank loan market involves the analysis of the structure of the loan portfolio, its most important areas are the assessment of the structure of the loan portfolio by type of customers, terms of lending, as well as by type of currency and more. It is determined that the credit policy of a banking institution is one of the main elements of banking policy, which is a strategy and tactics of the bank to attract temporarily free funds in the economy and direct them to credit operations. In the process of credit risk management, an important element is the ability of the bank's management to choose correctly: the sphere of management in which it is advisable to concentrate the bank's lending activities at a given time; "Its client", based on its creditworthiness and other factors that are of paramount importance for the bank in deciding on the possibility of granting a loan, etc. The credit policy of the banking institution determines the priorities in the development and improvement of lending activities, development of the credit process and increase its efficiency and ensures the stability, profitability and liquidity of the bank.

scholarly journals The Efficiency of Islamic Banks and Conventional Banks in Indonesia Using Data Envelopment Analysis Approach

2021 ◽  
Vol 58 (1) ◽  
pp. 375-381
Author(s):  
Retno Fitrianti, Sri Undai Nurbayani
Keyword(s):  
Data Envelopment Analysis ◽  
Commercial Bank ◽  
Commercial Banks ◽  
Banking Sector ◽  
Financial Institution ◽  
Data Envelopment ◽  
Islamic Banks ◽  
Sample Technique ◽  
Using Data ◽  
Conventional Banks

Banking sector mediation is related to efficiency in economic performance. As a financial institution, banks need to maintain their performance in order to operate optimally, one factor that must be considered is efficiency in performance. This research aimed to analyze the efficiency of Islamic Banks and Conventional Commercial Bank in Indonesia. Using a purposive sample technique for two Islamic banks and two commercial banks. Fixed assets, deposits, and other operating expenses as input variablesused, while credit as output variable.  Using Data Envelopment Analysis to calculate the efficiency of banking. The results show that all Sharia Commercial Bank samples reached efficiency level 1 was efficient. Besides, the sample of conventional commercial banks used in this study is not all efficient. This is due to one of the sample banks having an efficiency level below one, which is 0.644. It means that conventional bank groups are inefficient.

scholarly journals The economic situation in Iraq. Is there a way out in the current crisis?

2021 ◽  
Vol 14 (4) ◽  
pp. 102-118
Author(s):  
S. Yu. Babenkova
Keyword(s):  
Banking Sector ◽  
Financial Institution ◽  
White Paper ◽  
Economic Situation ◽  
Political Crisis ◽  
Economic Sectors ◽  
Current Crisis ◽  
The Real ◽  
The World ◽  
The Government

At present, the Iraqi economy is once again undergoing trials associated with an increase in unemployment, a drop in the standard of living of the population, especially in central and southern Iraq, as well as the almost complete dependence of budgetary revenues on fluctuating oil prices. This dependence on oil has left other important sectors of the country’s economy, such as agriculture and industry, in near collapse. Of course, the real political crisis in Iraq 3 should be viewed through economic indicators, given the country’s lack of a diversified economy. The revenues received from the sale of oil are not invested in the development of the necessary sectors of the economy or in innovations, but are distributed according to articles of domestic expenditures, including the maintenance of a large bureaucratic apparatus. When there is a shortage of income, in the event of an unfavorable price policy in the market, the government resorts to domestic and foreign borrowing. These steps induce the state to completely stop rebuilding what was destroyed during previous wars or to start developing other sectors of the economy.Against the background of the entire political and economic situation, the country’s financial sector is also going through hard times. The main products and services of the banks are focused on payroll projects, and they are also engaged in currency speculation in the auctions arranged by the Central Bank of Iraq. It also negatively affects the investment attractiveness of the country, since the receipt of «easy and fast money» by a financial institution practically eliminates the need for it to invest in the real sector of the economy, the principle of which is the basis, including Islamic financial institutions.In general, the economic picture of Iraq can be described in the following formulations. The country has the fourth proven crude oil reserves in the world, was the second largest producer of OPEC and the fourth largest producer in the world. The country has international financial organizations that provide international financial support (IMF, World Bank), including bilateral loans. There are more negative aspects, including large and almost widespread corruption, direct dependence of government revenues on oil exports, almost complete absence of non'oil sectors in the structure of economic sectors (especially the private sector), and a weak and limited banking sector. Of course, there is some hope that the White Paper for Economic Reforms 4 presented by the government of Mustafa al'Kadhimi, which identifies the main necessary reforms to restore the Iraqi economy, could become a certain benchmark for turning the current economic situation and the beginning of the necessary reforms. But on the eve of the elections, the political forces considered it in their own interests to oppose any reforms. In this regard, Iraq actually lost the opportunity to carry out full'fledged reforms, however, in our opinion, there is still little hope for recovery.

scholarly journals Assessment of Competitiveness Factors of an Agent of the Financial Environment: Methodology and Comparative Analysis

2021 ◽  
Vol 110 ◽  
pp. 01006
Author(s):  
Elvira Sitnikova ◽  
Tatyana Kolmykova ◽  
Irina Tretyakova ◽  
Darya Lobacheva
Keyword(s):  
Commercial Bank ◽  
Banking Sector ◽  
Capital Intensity ◽  
Loan Portfolio ◽  
The Public ◽  
Current Trends ◽  
The World ◽  
Banking Institutions ◽  
European Economies

The functioning of the banking sector of the economy in the world is characterized by a decrease in its capital intensity due to a decrease in the concentration of foreign capital, a deterioration in the quality of the loan portfolio, an outflow of urgent deposit resources and the receipt of significant losses by banking institutions during the COVID-19 pandemic. Taking into account the current trends in the spread of the virus, the development and implementation of fundamentally new approaches to anti-crisis management in the banking sector of both the world economy and Russia is of great importance today. The COVID-19 pandemic came as a big shock to the global and European economies. While banks are not hit by the pandemic as directly as other retail institutions, they are in the public eye as they provide funding to corporations and individuals. Their stability is crucial for maintaining the efficiency of the entire economic system, not only of a particular country, but also of the world. Currently, the need for a comprehensive study of the competitiveness of a commercial bank is determined by the objective modern conditions of the life of banks operating in a competitive environment. The article proposes the author’s methodology for assessing the competitiveness of a commercial bank, which includes five groups of indicators, which makes it possible to identify not only problematic, but also stable areas of activity. The proposed method for calculating the integral indicator for assessing the competitiveness of a commercial bank has been tested on the example of Russian Agricultural Bank and Sberbank, and a set of measures has been developed to increase the level of competitiveness of a commercial bank.

scholarly journals Green banking-a new dimension

2012 ◽  
Vol 1 (4) ◽  
pp. 343-347
Author(s):  
Aklima Akter ◽  
Md. Tofael Hossain Majumder ◽  
Mohammed Mizanur Rahman
Keyword(s):  
Banking Sector ◽  
Local Community ◽  
Financial Institution ◽  
Business Organizations ◽  
Dry Land ◽  
Economic Agents ◽  
Long Run ◽  
The World ◽  
Global Concern ◽  
Impact On Biodiversity

Climate change has become a global concern as it has direct impact on biodiversity,agriculture, forestry, dry land, water resources and human health. In a globalize economy, it is the time toconsider environmental policies because environmental impact might affect to the rate of return and reputationof business in the long-run. Among the business organizations, one of the major economic agents influencingoverall industrial activity and economic growth is the financial institution such as banking sector. Bank playsa very important role in shaping the economy. Now-a-days, Banks that support the local community andenvironment are seen as leaders. As a result, Bank continuously strives to ensure that its operations areenvironment-friendly and discourages financing projects contrary to it. This study highlights the concept,needs and significance, and products of green banking. The study forms mainly the extensive review ofrelated literature based on highly work. It is seen that there has not been much initiative in this regard by thebanks and other financial institutions in the world. Therefore, this paper suggests some necessary directionsfor promoting green banking in the world to protect the environment and builds banks performance.

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