scholarly journals A Research on Stress Testing Approach Towards Evaluating Credit Risk of a Financial Institution

2021 ◽  
Author(s):  
S M Nazmuz Sakib
Keyword(s):  
Financial Institutions ◽  
Stress Testing ◽  
Financial Institution ◽  
Well Being ◽  
Status Quo ◽  
Science Theory ◽  
The Future ◽  
Financial Framework ◽  
Economic Well Being ◽  
Credit Institutions

The stress testing methodology should be implemented and applied to the entity's overall financial system at least annually, and if the organization operates in a volatile economy, it should be performed at least twice a year. Finally, managers should include regular training and development sessions for relevant employees of their organization to be fully informed and more informed and informed, considering the evolving science, theory and practicality of a discrete range of stress testing mechanisms that can be appropriately applied to overall financial framework and system of multiple financial institutions and banks. In addition, stress testing is essentially a methodology that collects and analyzes certain future macro-prudential and micro-prudential economic drivers and indicators, the primary purpose of which is to assess the future financial and economic well-being, level of growth and status quo of a financial institution, bank, organization, credit institution or economy or the nation as a whole. In addition, several of these reviews were specifically focused and incorporated into the paper, which substantially and broadly discussed and summarized the importance, feasibility and implementation and conclusions of different stress testing approaches for financial institutions and banks, especially in European and Chinese countries. region. with the primary intention of assessing the future financial and economic well-being, level of growth and status quo of a group of financial institutions, banks, organizations, credit institutions or the economy or the nation as a whole. In addition, several of these reviews were specifically targeted and incorporated into a paper that substantially and broadly discussed and summarized the importance of the feasibility and implementation and conclusions of different stress testing approaches for financial institutions and banks, especially in European and Chinese countries. region. with the primary intention of assessing the future financial and economic well-being, level of growth and status quo of a group of financial institutions, banks, organizations, credit institutions or the economy or the nation as a whole. In addition, several of these reviews were specifically focused and incorporated into the paper, which substantially and broadly discussed and summarized the importance, feasibility and implementation and conclusions of different stress testing approaches for financial institutions and banks, especially in European and Chinese countries. region. the level of growth and status quo of the financial institutions, banks, organizations, credit institutions or the economy or the nation as a whole. In addition, several of these reviews were specifically focused and incorporated into the paper, which substantially and broadly discussed and summarized the importance, feasibility and implementation and conclusions of different stress testing approaches for financial institutions and banks, especially in European and Chinese countries. region. the level of growth and status quo of the financial institutions, banks, organizations, credit institutions or the economy or the nation as a whole. In addition, several of these reviews were specifically focused and incorporated into the paper, which substantially and broadly discussed and summarized the importance, feasibility and implementation and conclusions of different stress testing approaches for financial institutions and banks, especially in European and Chinese countries.

Confidence in the future as an economic development factor

2021 ◽  
pp. 54-62
Author(s):  
V. E. Dementyev ◽  
Keyword(s):  
Interest Rates ◽  
Capacity Utilization ◽  
Well Being ◽  
Development Factor ◽  
Urgent Task ◽  
The Future ◽  
Business Confidence ◽  
Existing Structure ◽  
Economic Well Being

The level of confidence in the future is considered as one of the important characteristics of the quality of life. Social and economic well-being depends on what expectations prevail in a society. It is shown that the reduction of interest rates on loans is not a sufficient condition for overcoming investment pessimism. It is indicated that with low capacity utilization, cheap loans can lead to stagnation of industries, contributing to the preservation of the existing structure of used capacities. The quality of coordination of economic activity is considered as one of the factors of business confidence in the future. It is noted that the competitiveness of existing industries has a great impact on the formation of new industries in the economy. It is emphasized that the transition to the system of interactive strategic planning remains an urgent task for our country.

scholarly journals Unconditional Basic Income and the Future of Labor

2020 ◽  
Vol 63 (3) ◽  
pp. 118-130
Author(s):  
Nikolai B. Afanasov
Keyword(s):  
Well Being ◽  
Basic Income ◽  
Philosophical Thinking ◽  
Philosophical Perspective ◽  
The People ◽  
Analytical Potential ◽  
The Social ◽  
The Future ◽  
The Many ◽  
Economic Well Being

The article examines one of the many philosophical problems that arise in the discussion on the prospects of unconditional basic income implementation. The author believes that the question of the future of labor should be reviewed in a social-philosophical perspective. The analytical potential of philosophical thinking can be useful in predicting the consequences of implementing the basic income initiative. The article proceeds from the premise that in the 21 st century the idea of basic income application turns from a utopian project into real measures roadmap. The economic well-being provided by the widespread use of technical means makes it possible to seriously plan the transfer of many workers employed in the sector of services and non-material production to basic income. The author points out that first of all it is necessary to assess the consequences of such a measure for the people. Traditionally, capitalist society has been built around a narrative that hard work is well rewarded. The opposition of labor and free time has shaped consumption patterns and life strategies for several generations. In the conclusion, the author suggests to consider whether, by removing such a system-forming element from the social structure, the society itself will be put under threat. It may turn out that an initiative aimed at changing society for the better will actually turn out to become a personal disaster for many people who will not be able to find a use for themselves in the new world, which is already not built around labor. Among other things, the author draws attention that contemporary capitalism, by actualizing the idea of basic income, abolishes the very opportunity of human choice. Virtually all human activity transforms into alienated labor.

Financial Institutions

2016 ◽  
Author(s):  
Matthias Haentjens
Keyword(s):  
Financial Institutions ◽  
Financial Institution ◽  
European Parliament ◽  
Solvency Ii ◽  
European Regulation ◽  
Supervisory Authority ◽  
Insolvency Proceedings ◽  
Credit Institutions

This chapter considers the Insurance Directive and the Solvency II Directive, directives that concern the reorganization and winding-up of insurance undertakings. It examines how European regulation has been adopted so that financial institutions can and must make use of a single authorization granted by the home Member State’s supervisory authority. Both of the Directives apply to insolvency proceedings concerning national and legal persons; however, four categories of financial institutions are excluded: the insurance undertakings; credit institutions; investment firms and other firms, institutions and undertakings to the extent that they are covered by Directive 2001/24/EC of the European Parliament and of the Council; and collective investment undertakings. The chapter also discusses the Settlement Finality and Collateral Directive and the Credit Institutions Directive, where settlement in effect represents the satisfaction or payment of a monetary obligation owed or owing by a counterparty to a financial institution.

scholarly journals PERMASALAHAN PEMBIAYAAN PADA LEMBAGA KEUANGAN SYARIAH

2018 ◽  
Vol 1 (1) ◽  
Author(s):  
Karebet Gunawan
Keyword(s):  
Feasibility Study ◽  
Financial Institutions ◽  
Financial Institution ◽  
Financial Statements ◽  
Profit Sharing ◽  
For Profit ◽  
The Future

Financing of a Sharia Financial Institution is a financing based on sharia principles with agreement or agreement between the banking party and the beneficiary in return for profit or profit sharing. In the provision of financing, sharia financial institutions pay attention to the aspects that exist in the feasibility study in order to reduce the risk in the future. These aspects are production, marketing, personnel, and financial aspects include how the existing financial statements so that all financing is expected to run smoothly and can meet the level of profitability and liability. In providing financing should be seen 5C principles are: character, capacity, capital, colateral and condition of economy. Even in addition to using the 5C there are also using the first 7P Personality, Purpose, Party,Prospect,Payment,Profitability,Protectiona. Keywords:financing,feasibility,and profitablity<br /><br />

Abnormal lending and risk in Swedish financial institutions

2018 ◽  
Vol 17 (4) ◽  
pp. 498-513
Author(s):  
Stephanos Papadamou ◽  
Dionisis Philippas ◽  
Batnini Firas ◽  
Thomas Ntitoras
Keyword(s):  
Financial Institutions ◽  
Financial Institution ◽  
Z Score ◽  
Content Type ◽  
Interest Income ◽  
Wide Range ◽  
Different Types ◽  
Loan Growth ◽  
Loan Losses ◽  
Credit Institutions

Purpose This paper aims to examine the relationship between abnormal loan growth and risk in Swedish financial institutions by type and borrower using three indicators as proxies for risks related to loan losses, the ratio of interest income to total loans and solvency perspectives. Design/methodology/approach Using a large sample of different types of Swedish financial institutions, this paper uses a panel framework to examine the relationships between abnormal loan growth rates and loan losses, interest income as a percentage of total loans, changes in the equity to assets ratio and changes in z-score. Findings The findings show two important points of evidence. First, abnormal lending to retail customers increases loan losses and interest income in relation to total loans. Second, abnormal lending to other credit institutions decreases loan losses and significantly changes the capital structure by increasing the reliance on debt funding and significantly improves the z-score measure. Research limitations/implications The findings provide useful implications for the management of loan portfolios for a wide range of Swedish financial institutions, identifying two components: abnormal lending to households may increase loan losses and increase interest income in relation to total loans, and excessive lending to other credit institutions may reduce solvency risk and allow more debt financing for the financial institution. Originality/value This is the first study to use a panel framework in analyzing the behavior of different types of Swedish financial institutions in relation to loans granted to retail customers and other credit institutions.

scholarly journals Kedudukan Fatwa DSN-MUI dalam Transaksi Keuangan pada Lembaga Keuangan Syariah di Indonesia

2020 ◽  
Vol 5 (2) ◽  
pp. 196
Author(s):  
Awaluddin Awaluddin ◽  
Andis Febrian
Keyword(s):  
Financial Institutions ◽  
Financial Institution ◽  
Islamic Banking ◽  
Special Position ◽  
Legal Relationship ◽  
The Future ◽  
Islamic Financial Institutions ◽  
Technical Basis ◽  
Laws And Regulations

<p><em>National Sharia council fatwa is a reference by every sharia financial institution in Indonesia in carrying out its operations. To implement sharia compliance by sharia financial institutions as formed as an extension of the DSN to oversee every financial institution to be in line with sharia principles. A problem that often arises in Islamic financial institutions is that the fatwa issued by DSN requires studies and opinions from DPS in operational techniques in Islamic financial institutions. the existing fatwas have not yet been represented in technical transactions at financial institutions. This research is a sociological juridical study, which examines the existence of MUI fatwas and the development of sharia economy and how the legal relationship between the MUI fatwa and the implementation of sharia economy in Indonesia with applicable laws and regulations. The results of this study see that the position of the fatwa in the perspective of banking law in Indonesia as a juridical reason for the legislature to set in the legislation. Besides that, the DSN fatwa as a technical basis for supervision is regulated in the laws and regulations on Islamic banking. From the data obtained that the position of fatwa in sharia banking has become a reference in every transaction for the future, each DPS in sharia financial institution is expected to not only be an independent board that is complementary but has a special position and staff in charge of each transaction carried out in the hope of implementing Sharia principles are maximally implemented</em><em>.</em></p><p> </p><p><em>Fatwa dewan syariah nasional merupakan rujukan oleh setiap lembaga keuangan syariah di Indonesia dalam menjalankan opersionalnnya. Untuk menjalankan kepatuhan syariah oleh lembaga keuangan syariah maka dibentuklah Dewan Pengawas Syariah (DPS) sebagai perpanjangan tangan dari Dewan Syariah Nasional (DSN) untuk mengawasi setiap lembaga keuangan untuk sejalan dengan prinsip syariah. Problem yang sering muncul di lembaga keuangan syariah adalah fatwa yang dikeluarkan oleh DSN membutuhkan kajian dan opini dari DPS dalam teknis operasional di lembaga keuangan syariah. Fatwa yang sudah ada belum semuannya terwakili dalam teknis transaksi pada lembaga keuangan. </em><em>Penelitian ini merupakan suatu penelitian yuridis sosiologis, yaitu meneliti tentang keberadaan Fatwa-fatwa MUI dan perkembangan ekonomi syariah dan bagaimana hubungan hukum antara fatwa MUI dan pelaksanaan ekonomi syariah di Indonesia dengan peraturan perundang-undangan yang berlaku. Hasil penelitian ini melihat bahwa kedudukan fatwa dalam prespektif hukum perbankan di Indonesia sebagai alasan yuridis bagi lembaga legislasi untuk menetapkan dalam aturan perundang-undangan. Disamping itu juga fatwa DSN sebagai dasar teknis pengawasan yang diatur dalam aturan perundang-undangan tentang perbankan syariah. Dari data yang diperoleh bahwa kedudukan fatwa pada perbankan syariah sudah menjadi rujukan dalam setiap transaksi untuk kedepannya setiap DPS yang ada dilembaga keuangan syariah diharapkan tidak hanya sebagai dewan independen yang besifat sebagai pelengkap tetapi memiliki kedudukan dan staf khusus yang membidangi setiap transaksi yang dijala</em>nkan dengan harapan pelaksanaan prinsip syariah maksimal dilaksanakan.</p>

scholarly journals Liquidity at Risk

2020 ◽  
Vol 20 (82) ◽  
Author(s):  
Rama Cont ◽  
Artur Kotlicki ◽  
Laura Valderrama
Keyword(s):  
At Risk ◽  
Financial Institutions ◽  
Stress Testing ◽  
Financial Institution ◽  
Traditional Approach ◽  
Capital Adequacy ◽  
Stress Tests ◽  
Joint Stress ◽  
Liquidity Shocks ◽  
The Impact

The traditional approach to the stress testing of financial institutions focuses on capital adequacy and solvency. Liquidity stress tests have been applied in parallel to and independently from solvency stress tests, based on scenarios which may not be consistent with those used in solvency stress tests. We propose a structural framework for the joint stress testing of solvency and liquidity: our approach exploits the mechanisms underlying the solvency-liquidity nexus to derive relations between solvency shocks and liquidity shocks. These relations are then used to model liquidity and solvency risk in a coherent framework, involving external shocks to solvency and endogenous liquidity shocks arising from these solvency shocks. We define the concept of ‘Liquidity at Risk’, which quantifies the liquidity resources required for a financial institution facing a stress scenario. Finally, we show that the interaction of liquidity and solvency may lead to the amplification of equity losses due to funding costs which arise from liquidity needs. The approach described in this study provides in particular a clear methodology for quantifying the impact of economic shocks resulting from the ongoing COVID-19 crisis on the solvency and liquidity of financial institutions and may serve as a useful tool for calibrating policy responses.

Islamic marketing ethics for Islamic financial institutions

2019 ◽  
Vol 36 (1) ◽  
pp. 1-11 ◽  
Author(s):  
Ameenullah Aman
Keyword(s):  
Financial Institutions ◽  
Financial Institution ◽  
Well Being ◽  
Marketing Mix ◽  
Research Literature ◽  
Marketing Ethics ◽  
Product Price ◽  
Content Type ◽  
Islamic Financial Institutions ◽  
Islamic Values

Purpose To wipe out the criticism of being a replica of conventional financial institution, Islamic financial institutions (IFIs) need to comply with Islamic principles not only on financial side but also while branding and marketing their products and services. This will bring the coherence between their overall market image and core business activities. This paper aims to discuss in detail the Islamic marketing traits relevant to the IFIs for positioning and offering their products. Design/methodology/approach This study follows the research design based on reviewing existing sources of Qura’an and Hadith, the secondary research literature on this novel topic and substantial intellectual discourse with the field experts. Findings It is criticized that IFIs lack the spirit of Islamic values for marketing and branding a commercial business entity. Therefore, this paper outline the differences between Islamic and conventional marketing. Also, it contributes to explain the traits of Islamic marketing mix relevant to the IFIs based on Islamic established principles. Research limitations/implications This study gives valuable practical guidelines for the marketing policymakers of Islamic financial institutions. Islamic marketing mix; product, price, place and promotion, related strategies can be designed and branded keeping the true spirit of Islamic marketing values intact. Practical implications This study is practically important for Islamic financial intuitions to sustain their “Islamic” image by making sure of Islamic principles in their product development, pricing, promotions and distribution. Social implications The socioeconomic system is the brand of Islamic economics and finance. IFIs being the stakeholders of this brand can contribute to the well-being of the society by enhancing their acceptability with the help of divine image and operations. Originality/value Literature on practical Islamic marketing approach in particular to the IFIs is very limited. This study gives comprehensive findings on all the major aspects of marketing based on Islamic values for Islamic financial institutions.

scholarly journals Religious Communal of Indigenous Peoples in Improving Economy Through Local Wisdom (A Juridical Study on Rural Credit Institution in Bali)

2016 ◽  
Vol 1 (1) ◽  
pp. 89
Author(s):  
Johannes Ibrahim ◽  
Hassanain Haykal
Keyword(s):  
Indigenous Peoples ◽  
Financial Institutions ◽  
Financial Institution ◽  
Target Area ◽  
Credit Institution ◽  
Rural Credit ◽  
Local Residents ◽  
Financial Transactions ◽  
The Village ◽  
Credit Institutions

Rural Credit Institution is a financial institution that is specifically located in Pakraman (customary villages) in Bali. The presence of Rural Credit Institution in Bali adjoined to other bank financial institutions such as Commercial Banks and Rural Banks are widespread throughout the province of Bali. Rural Credit Institutions as a financial institution acquire legality under Article 58 of Act No. 7 of 1992 in conjunction with Act No. 10 of 1998 which provides status as Rural Banks. Local wisdom that owned by Rural Credit Institutions, has the scope of business activities, the types of activities and financial transactions are limited in Pakraman as the target area. Customers who save funds or require a loan to be registered as local residents aimed at empowering communities. It is a characteristic of religious communal of Bali’s people for business activities in the village. The uniqueness in the Rural Credit Institutions is the local wisdom of Bali’s people that can be maintained and not be crushed by globalization.

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