Bank Recapitalization, Bank Performance and Real Sector Lending: An Analysis of Indonesia’s Economic Recovery from the Crises of 1997-1998

2007 ◽  
Author(s):  
Batara Simatupang
Keyword(s):  
Economic Recovery ◽  
Bank Performance ◽  
Real Sector ◽  
Bank Recapitalization

Утицај примене методе удела на перформансе инвеститора // The effect of using the equity method on the performance of the investor

2014 ◽  
Vol 12 (20) ◽  
pp. 59
Author(s):  
Ката Шкарић Јовановић
Keyword(s):  
Financial Reporting ◽  
Joint Venture ◽  
Transition Process ◽  
Economic Recovery ◽  
Real Sector ◽  
The Real ◽  
Joint Management ◽  
Net Assets ◽  
Equity Investments ◽  
Entire Amount

Резиме: Постоји општа сагласност да је повећање инвестиција у реални сектор једна од кључних претпоставки за опоравак привреда земаља обухваћених кризом. У земљама које уз то нису довеле до краја процес транзиције, та потреба се поставља још снажније. Инвеститори могу улагати у оснивање нових друштава, докапитализацију постојећих и оснивање друштава која ће бити под заједничком управом. Финансијско извештавање о улагањима се разликује у зависности од висине учешћа у капиталу друштва. Значајан утицај инвеститору омогућава учешће у капиталу које је више од 20 и мање од 50% капитала и учешће у заједничком подухвату које му обезбеђује да буде страна у заједничкој управи. За утврђивање вредности оваквих учешћа примењује се метода удела. Она се битно разликује од консолидације која се користи за учешћа која су основа контроле по томе како се одређује вредност учешћа и по висини и времену признавања прихода од учешћа. Методе удела, чија примена је обавезна, пружају инвеститорима две важне информације: колики је износ нето имовине придруженог друштва или заједничког подухвата који се односи на учешће и колико износи учешће инвеститора у добитку. Због тога што се готово никад цео износ добитка не додељује власницима, већ један део добити остаје задржан. приходи од учешћа код ове методе готово редовно виши од прилива готовине по основу примљених дивиденди, примена методе удела може неповољно утицати на ликвидност друштва инвеститора.Summary: There is a general agreement that the increase in investment in the real sector is one of the key prerequisites for economic recovery of countries affected by the crisis. In countries which have finished the transition process, this need arises even more strongly. Investors can invest in the establishment of new companies, the recapitalization of existing ones and establishment of companies that will be under the joint management. Financial reporting on investments varies depending on the amount of equity investments in companies. Significant impact for investors provides the share in the capital of more than 20 % and less than 50 % and equity participation in the joint venture provides a participation in the joint management. To determine the value of such share, the equity method is applied . It is very different from the consolidation that is used for the share which is the basis of control in how to determine the value of the share and the amount and timing of recognition of share revenue. The equity method, whose application is mandatory offers investors two important information: what is the amount of net assets of the associate or joint venture relating to share and how high is the share of investors in profit. The entire amount of earnings is almost never allocated to owners, part of the earnings is retained. Income from the participation in this method is almost always higher than the inflow of cash in dividends received, using the equity method may adversely affect the liquidity of the company investors.

Bank recapitalization and economic recovery after financial crises

2017 ◽  
Vol 32 ◽  
pp. 16-28 ◽  
Author(s):  
Timotej Homar ◽  
Sweder J.G. van Wijnbergen
Keyword(s):  
Financial Crises ◽  
Economic Recovery ◽  
Bank Recapitalization

scholarly journals POLICY OF TIME ECONOMIC RECOVERY COVID-19 PANDEMIC IN INDONESIA YEAR 2020-2021

2021 ◽  
Author(s):  
endang naryono
Keyword(s):  
Death Rate ◽  
Economic Recession ◽  
Economic Recovery ◽  
Economic Downturn ◽  
Purchasing Power ◽  
Real Sector ◽  
Cure Rate ◽  
Inaccurate Data ◽  
National Economic ◽  
Second Year

The COVID-19 pandemic for almost two years has had a very extraordinary and frightening impact, there have been 2.3 million cases of covid-19 with a cure rate of 84% and a death rate of 2.6% in July 2021. The Covid-19 pandemic has not only created a humanitarian disaster but has an impact National economic downturn, such as negative economic growth, declining purchasing power, increasing poverty and uncontrolled unemployment. The government's policy by carrying out a two-legged policy, the first is to break the chain of the spread of this pandemic with regulations and health protocol policies. The second is economic recovery during the pandemic with social assistance to the community, SMEs and industrialization so that they still have purchasing power to move the real sector. Inaccurate data, limited infrastructure and budget constraints are the biggest obstacles to economic recovery during the pandemic. UKMM is the final foundation and backbone of the national economy in the midst of an economic recession in its second year.

scholarly journals Implications of Financial Intermediation on The Performance of Commercial Banks in Nigeria: 2000-2017

2019 ◽  
Vol 3 (4) ◽  
pp. 94-105
Author(s):  
J.A. Adewole ◽  
F.D. Dare ◽  
J.K. Ogunyemi
Keyword(s):  
Gross Domestic Product ◽  
Commercial Bank ◽  
Significant Relationship ◽  
Commercial Banks ◽  
Financial Intermediation ◽  
Commercial Banking ◽  
Domestic Product ◽  
Bank Performance ◽  
Real Sector ◽  
Performance Equation

The paper examined the arguments and counterarguments within the scientific discussion on Financial Intermediation and the performance of Commercial banks in Nigeria. Despite a series of reforms and restructuring aimed at enhancing the bank’s ability to provide services effectively, establish branch networks and finance the real sector, there is still insufficient domestic credit to commercial real-estate banks, affecting the success of financial intermediation in the Nigerian commercial banking sector. The main purpose of this study is to examine the impact of financial intermediation on the performance of commercial banks in Nigeria. The data came from a statistical bulletin of the Central Bank of Nigeria. A systematic literary approach to data analysis is regression analysis. In Equation 1, it was found that there is a significant relationship between total lending and the commercial bank lending rate in Nigeria. In Equation 2, it was found that there is a significant relationship between the overall credit ratio and the cash reserve in the commercial banks of Nigeria. In the commercial bank performance equation, it was found that there is a significant relationship between the total assets and the capital involved by commercial banks in Nigeria. In the commercial bank performance equation, it was found that there was no significant relationship between the loan and deposit ratio and the liquidity ratio in the commercial banks of Nigeria. It has also been found in Commercial Banking Performance Equation 5 that there is a significant relationship between gross domestic product and total credit in the commercial banks of Nigeria. Thus, the study authors recommend reducing the commercial bank loan rate so that investors see commercial banks as the number one source of funding, the Central Bank of Nigeria should increase the commercial banks’ minimum reserve in order to facilitate adequate lending to commercial customers by clients/investors. Commercial banks need to make effective use of the capital used to increase profitability. Commercial banks should help increase liquidity to increase their ability to cover customer withdrawals and increase loans and advances to customers. Commercial banks should allocate proper credit to the real sector for productive purposes in order to increase gross domestic product. Keywords: Financial Intermediation, Commercial Banks, Gross Domestic Product, Commercial Bank Credit.

scholarly journals Bank Recapitalization and Real Sector Performance: Empirical Evidence From Nigeria.

2016 ◽  
Vol 3 (1) ◽  
pp. 126
Author(s):  
Ebenezer Y Akinkoye ◽  
Lukman Oyeyinka Oyelami
Keyword(s):  
Indirect Effect ◽  
Global Economy ◽  
Structural Break ◽  
Output Growth ◽  
Real Sector ◽  
Bank Capital ◽  
Policy Shift ◽  
Sector Performance ◽  
The Impact ◽  
Bank Recapitalization

<p>This study investigates the impact of bank recapitalization on real sector performance in Nigeria. Specifically, the study examines the direct effect (bank investment) and indirect effect (loans and advances to real sector) on real<br />sector output growth between the period 1986 and 2012.This study departs from previous studies because we aggregate the three leading sectors (agriculture, manufacturing and building and construction) of the Nigerian<br />economy to arrive at our real sector index. Also, having carefully subjected our data to necessary econometric tests we employed chow test for structural break to test for the existence of policy shift between bank capital base and loan<br />to the real sector of the Nigerian economy as a result of bank recapitalisation policy .Similarly, OLS estimates was used to determine the direct and indirect effect of bank capital base and real sector output growth. The results from<br />structure break tests reveal that bank recapitalization policy causes policy shift in bank capital base and loan to real sector thus the policy is of significant impact to real sector performance .In corollary, the result from the OLS strongly<br />indicates that bank capital base has significant effect on real sector output growth directly and indirectly. We then conclude that Nigerian banks should be adequately capitalised as to play active intermediateting roles expected of<br />them in this modern and competitive global economy</p>

scholarly journals Bank Recapitalization and Real Sector Performance

2014 ◽  
Vol 3 (1) ◽  
pp. 126-136
Author(s):  
Ebenezer Akinkoye ◽  
Lukman Oyeyinka Oyelami
Keyword(s):  
Indirect Effect ◽  
Global Economy ◽  
Structural Break ◽  
Output Growth ◽  
Real Sector ◽  
Bank Capital ◽  
Policy Shift ◽  
Sector Performance ◽  
The Impact ◽  
Bank Recapitalization

This study investigates the impact of bank recapitalization on real sector performance in Nigeria. Specifically, thestudy examines the direct effect (bank investment) and indirect effect (loans and advances to real sector) on realsector output growth between the period 1986 and 2012.This study departs from previous studies because weaggregate the three leading sectors (agriculture, manufacturing and building and construction) of the Nigerianeconomy to arrive at our real sector index. Also, having carefully subjected our data to necessary econometric testswe employed chow test for structural break to test for the existence of policy shift between bank capital base and loan to the real sector of the Nigerian economy as a result of bank recapitalisation policy .Similarly, OLS estimates was  used to determine the direct and indirect effect of bank capital base and real sector output growth. The results from structure break tests reveal that bank recapitalization policy causes policy shift in bank capital base and loan to real sector thus the policy is of significant impact to real sector performance .In corollary, the result from the OLS strongly indicates that bank capital base has significant effect on real sector output growth directly and indirectly. We then conclude that Nigerian banks should be adequately capitalised as to play active intermediateting roles expected of them in this modern and competitive global economy.

Lack of confidence in Ukraine's economy hinders banks

2015 ◽  
Keyword(s):  
Large Scale ◽  
Banking Sector ◽  
Term Effect ◽  
Economic Recovery ◽  
Real Sector ◽  
Short Term ◽  
Content Type ◽  
Short Term Effect ◽  
The Troubles ◽  
Legislative Changes

Significance Ukraine's financial system and banks in particular have been one of the most obvious casualties of the crisis. The troubles that have befallen the banking sector following Ukraine's early-2014 slide into turmoil may not have been particularly new, as many of them also appeared during earlier crises, most recently in 2008-09. However, the extent of the present-day problems has proved unparalleled, with far-reaching implications for the system. Ukraine's reserves stood at 9.6 billion dollars at end-April. Impacts The central bank's clean-up should help strengthen banking but may have negative short-term effect on restoring public trust. Banks will be slow in resuming large-scale lending to the real sector, limiting opportunities for wider economic recovery. Populist attempts to solve the issue of forex loan conversion via legislative changes could complicate Kyiv's cooperation with the IMF.

Women in Construction and the Economic Recovery Results from 2013 IWPR Tradeswomen Survey

2014 ◽  
Author(s):  
Ariane Hegewisch ◽  
Brigid O'Farrell
Keyword(s):  
Economic Recovery

Exchange Rate Regimes and Economic Stability

2010 ◽  
pp. 29-43
Author(s):  
S. Smirnov
Keyword(s):  
Exchange Rate ◽  
Inflation Targeting ◽  
Exchange Rate Regime ◽  
Exchange Rate Policy ◽  
Real Sector ◽  
Economic Stability ◽  
Exogenous Shocks ◽  
Floating Exchange Rate ◽  
Rate Policy ◽  
Managed Floating

The Bank of Russia intends to introduce inflation targeting policy and exchange rate free floating regime in three years. Exogenous shocks absorption which stabilizes the real sector of economy is usually considered to be one of the advantages of free floating exchange rate policy. However, our research based on the analysis of 25 world largest economies exchange rates and industrial production during the crisis of 2008-2009 does not confirm this hypothesis. The article also analyzes additional risks associated with free floating exchange rate regime in Russia and presents some arguments in favor of managed floating exchange rate regime.

Hidden “holes” in the capital of banks and the supply of credit to the real sector of economy

2018 ◽  
pp. 49-68 ◽  
Author(s):  
M. E. Mamonov
Keyword(s):  
Credit Risk ◽  
The Other ◽  
Real Sector ◽  
Capital Management ◽  
Loan Loss ◽  
Short Term ◽  
The Real ◽  
Ex Post ◽  
The One

Our analysis documents that the existence of hidden “holes” in the capital of not yet failed banks - while creating intertemporal pressure on the actual level of capital - leads to changing of maturity of loans supplied rather than to contracting of their volume. Long-term loans decrease, whereas short-term loans rise - and, what is most remarkably, by approximately the same amounts. Standardly, the higher the maturity of loans the higher the credit risk and, thus, the more loan loss reserves (LLP) banks are forced to create, increasing the pressure on capital. Banks that already hide “holes” in the capital, but have not yet faced with license withdrawal, must possess strong incentives to shorten the maturity of supplied loans. On the one hand, it raises the turnovers of LLP and facilitates the flexibility of capital management; on the other hand, it allows increasing the speed of shifting of attracted deposits to loans to related parties in domestic or foreign jurisdictions. This enlarges the potential size of ex post revealed “hole” in the capital and, therefore, allows us to assume that not every loan might be viewed as a good for the economy: excessive short-term and insufficient long-term loans can produce the source for future losses.

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