COMMERCIAL BANKS AS A KEY LINK OF THE CREDIT SYSTEM IN THE PRIDNESTROVSKAYA MOLDAVIAN REPUBLIC

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Todd Kuethe ◽

Chad Fiechter ◽

David Oppedahl

Keyword(s):

Commercial Banks ◽

Bank Lending ◽

Future Research ◽

Land Values ◽

Credit System ◽

Stylized Facts ◽

Content Type ◽

Loan Rate ◽

The Individual ◽

Survey Responses

PurposeThis study examines agricultural lending by commercial banks and the competition they face from the Farm Credit System (FCS) and non-traditional lenders, including merchants, dealers and other input suppliers.Design/methodology/approachWe construct a measure of commercial banks' perceived competition with FCS or non-traditional lenders using the individual responses to the Federal Reserve Bank of Chicago's Land Values and Credit Conditions Survey between 1999 and 2019. Through regression analysis of an unbalanced panel of survey responses, we present a number of stylized facts on the relationship between perceived competition and farm loan rate spreads, collateral requirements, loan delinquencies and expected lending volumes.FindingsOur analysis shows that the two sources of competition have very different effects on commercial bank lending terms, loan portfolio riskiness and expected loan volumes. With these results in mind, we offer a number of suggestions for future research.Originality/valueWe leverage the unique characteristics of the Land Values and Credit Conditions Survey to examine the competition with non-traditional lenders that cannot be observed using administrative data.

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Evaluation of the Impact of the Bank of Russia Key Rate on the Commercial Banks’ Deposit Policy

Administrative Consulting ◽

10.22394/1726-1139-2020-8-99-111 ◽

2020 ◽

pp. 99-111

Author(s):

M. N. Konyagina ◽

I. R. Meurmishvili ◽

A. A. Dochkina

Keyword(s):

Monetary Policy ◽

Interest Rates ◽

Commercial Banks ◽

Policy Instruments ◽

Policy Instrument ◽

Credit System ◽

Leading Role ◽

State Of The Economy ◽

Current Impact ◽

The Impact

The monetary policy of the Central Bank is in the sphere of interests of economists of various specializations. Determining the value of money in the economy, the money supply, and ensuring the effective functioning of the national payment system, the regulator has a significant impact on the state of the economy and determines the prospects for its development. One of the most important monetary policy instruments is the key rate. However, the efficiency of its application in different economies at different historical periods is different.At the same time, commercial banks, being the core of the credit system, are extremely dependent on the volume and quality characteristics of accumulated deposits. Private clients’ deposits are an important resource for both short-term and long-term operations of credit organizations. In Russia, banks play a leading role in the financial market. In this regard, the evaluation of the impact of a key rate as an important monetary policy instrument on the banks’ deposit policy is of particular relevance in the current state of the Russian economy. Therefore, determining as an aim of the research the evaluation of the current impact of the Bank of Russia key rate on the Russian credit organizations’ deposit policy, the authors sorted out the necessary relevant data on interest rates and deposit volumes in Russian commercial banks in 2014–2018, assessed the strength of the relationship between the Bank of Russia key rate and banks’ deposit rates and the volume of deposits in the country, identified the problems of implementing monetary policy in Russia and evaluated the effectiveness of the key rate as the monetary policy tool.

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Banking in a Digital Fiat Currency Regime

Regulating Blockchain ◽

10.1093/oso/9780198842187.003.0009 ◽

2019 ◽

pp. 169-180 ◽

Cited By ~ 3

Author(s):

Rohan Grey

Keyword(s):

Commercial Banks ◽

Financial Regulation ◽

Banking Industry ◽

Social Function ◽

Direct Access ◽

System Efficiency ◽

Credit System ◽

The Public ◽

Monetary Regime ◽

Public Nature

This chapter explores the future of banking in a digital fiat currency (‘DFC’) regime, defined as a monetary regime in which retail and wholesale consumers have direct access to public digital checking and payments services, independent of the existing bank-centric depository system. I argue that in such a regime, existing banks will continue to perform the valuable social function of underwriting loans and evaluating collateral, even as their checking and payments processing functions will be rendered obsolete. Such a system would improve payments system resiliency, while addressing the safe asset shortage issues associated with insurance caps on bank deposit accounts. At the same time, a DFC regime would necessarily clarify the public nature of the existing credit system, wherein commercial banks are (inherently) entrusted to underwrite loans and subjectively evaluate collateral. Thus, digital fiat currency technology represents more than a mere improvement in payment system efficiency—it has the potential to transform the banking industry, simplify financial regulation, and recast our collective understanding of how money and banking work in the modern economy.

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A Probe into the Path of Internalization of Green Development Concept in China's Commercial Banks Credit System

10.7176/ppar/9-4-02 ◽

2019 ◽

Keyword(s):

Commercial Banks ◽

Credit System ◽

Green Development ◽

Development Concept

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Construction of Green Credit System for Commercial Banks

International Journal of Science and Research (IJSR) ◽

10.21275/art20175301 ◽

2017 ◽

Vol 6 (7) ◽

pp. 506-510

Keyword(s):

Commercial Banks ◽

Credit System

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Affordable Credit Resources to Implement Investment Projects in Industry of Russia

Vestnik of the Plekhanov Russian University of Economics ◽

10.21686/2413-2829-2020-4-24-35 ◽

2020 ◽

Vol 17 (4) ◽

pp. 24-35

Author(s):

V. A. Eremkin

Keyword(s):

Interest Rates ◽

Commercial Banks ◽

Banking Sector ◽

Credit System ◽

Investment Projects ◽

Industrial Enterprises ◽

Low Interest Rates ◽

The Russian Federation ◽

The Impact

Raising loan finance by industrial enterprises for the development of their investment projects is an important factor for economic growth in Russia. Due to this the problem of credit resource affordability for Russian business becomes more and more topical. The article analyzes possibilities of credit affordability regulation for industrial enterprises by tools of monetary policy of the Central Bank of the Russian Federation. The author aims at indentifying the current problems of the credit system for industrial enterprises and finding the key lines in its improvement. Within the frames of the research the author estimates the impact of high and low interest rates on the volume of industry crediting, analyzes the structure of giving credits to non-financial organizations and studies the problem of long cash affordability for realizing investment projects in industry. The article also investigates the asset concentration in the banking sector and shows the higher role of state and the diminishing number of commercial banks and their branches. Certain important lines of development were identified, which in the future could determine the situation in industry crediting in Russia. Finding of the research can be used for devising the state strategy of developing the system of industry crediting in Russia.

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Variable Interest Rates and the Financial Performance of Dairy Farm Businesses

Northeastern Journal of Agricultural and Resource Economics ◽

10.1017/s0899367x00000556 ◽

1984 ◽

Vol 13 (2) ◽

pp. 229-237

Author(s):

Eddy L. LaDue ◽

Gordon A. Zook

Keyword(s):

Interest Rates ◽

Commercial Banks ◽

Dairy Farm ◽

Variable Rate ◽

Credit System ◽

Fixed Rate ◽

Farm Credit ◽

Farm Credit System ◽

The Interest Rate ◽

On Farm

The increased variability of interest rates experienced during the early 1980s led many commercial banks to shift the interest rate they charge on farm loans from a fixed to a variable rate (Zook and LaDue). Although the Farm Credit System had used variable rates for a number of years, the index for their rate was the average cost of funds, which is less volatile than some of the rate indices used by commercial banks. Further, in contrast to the situation when the Farm Credit Service switched to variable rates, the shift of commercial banks to variable rates left most farmers with no fixed rate general credit source, no matter how important a fixed debt service commitment might be to their business.

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Monetary Transformation

The Handbook of Political, Social, and Economic Transformation ◽

10.1093/oso/9780198829911.003.0062 ◽

2019 ◽

pp. 573-579

Author(s):

Hubert Gabrisch

Keyword(s):

Central Bank ◽

Financial Markets ◽

Financial Institutions ◽

Commercial Banks ◽

Currency Crises ◽

Foreign Currency ◽

Transition Period ◽

Central Banks ◽

Transformation Process ◽

Credit System

Monetary transformation means the conceptual restoration of the functions of money in a former quasi-barter economy, in which the use of legal money and foreign currency was limited and financial markets were widely non-existent. Therefore, the chapter throws special light on the development of a market-based credit system, consisting of commercial banks, a central bank, and other financial institutions. As with any other range of the transformation process, monetary transformation is not free of frictions, crises, and challenges. The chapter discusses the typical challenges at the start of the transformation, such as the problem of non-performing loans, and the frequent banking and currency crises. The new central banks face specific challenges in the stabilization of the domestic and external value of their currencies, and in supervising and guiding monetary/financial intermediation in the transition period.

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