scholarly journals Determinants of Non-Performing Loans for the EEC Region. A Financial Stability Perspective

2020 ◽  
Vol 15 (4) ◽  
pp. 621-642
Author(s):  
Luminita Roxana Tatarici ◽  
Matei Nicolae Kubinschi ◽  
Dinu Barnea
Keyword(s):  
Financial Stability ◽  
Fixed Effects ◽  
Banking Sector ◽  
Real Economy ◽  
Macroeconomic Factors ◽  
The Real ◽  
Macroeconomic Conditions ◽  
Governance Indicators ◽  
Credit Cycle ◽  
The Government

AbstractThis article investigates the determinants of non-performing loans for a panel of EEC countries and the implications for the real economy, covering the period 2005-2017. Among the determinants, the paper proposes macroeconomic factors, banking sector variables, and cost and governance indicators. Additionally, the paper explores the extensive use of macroprudential measures in these countries. Using a panel with fixed effects and a dynamic GMM estimator, the results support the existing findings that adverse macroeconomic developments are generally associated with higher non-performing loans, while increases in NPLs have a rather transitory effect on the real economy and credit. NPL ratios increase if macroeconomic conditions deteriorate, while an improvement in the government effectiveness reduces them. A more profitable and better capitalized banking sector generally leads to lower NPLs. Moreover, countries with higher past credit growth rates witnessed higher NPLs in the periods that followed. These results support the use of macroprudential measures for increasing the resilience of borrowers, such as limits on the indebtedness level (such as debt service-to-income, DSTI or loan-to-value, LTV caps), as tools to temper the credit cycle.

scholarly journals HUBUNGAN MAKROEKONOMI TERHADAP KINERJA KEUANGAN PADA BANK KONVENSIONAL DAN BANK SYARIAH DI JAWA TIMUR

2020 ◽  
Vol 3 (2) ◽  
pp. 322-327
Author(s):  
Sishadiyati ◽  
Chantya Anggi Kirana
Keyword(s):  
Financial Performance ◽  
Inflation Rate ◽  
Banking Sector ◽  
Islamic Banks ◽  
Financial Difficulty ◽  
Liquidity Management ◽  
Macroeconomic Factors ◽  
Macroeconomic Conditions ◽  
The Government ◽  
Conventional Banks

Macroeconomic factors can be said to have a relationship with the financial performance of banks, both conventional banks and Islamic banks. The condition of the banking sector in East Java is very vulnerable to economic shocks that occur. So it requires a very independent and good liquidity management. The existing banking sector is still very dependent on the policies made by the central bank and the government. Then if there is a financial difficulty caused by unfavorable macroeconomic conditions, then the bank's financial performance may also be disrupted. Based on the analysis of data that has been explained that macroeconomic factors such as GRDP, inflation rate, unemployment rate, BI Rate and exchange rate, which have a very large relationship to the performance of conventional banks and Islamic banks in East Java is the BI rate. This shows that the banking sector in East Java must pay special attention to the dynamics of macroeconomic factors that occur. Whereas the financial performance between Islamic banks and conventional banks shows a difference. This is because the management of bank financial performance between Islamic banks and conventional banks has a different policy.

scholarly journals Transformation of the Banking Sector of Ukraine: Reasons and Consequences

2017 ◽  
Vol 1 (13) ◽  
pp. 33-48
Author(s):  
Myroslava Khutorna
Keyword(s):  
Economic Development ◽  
Banking Sector ◽  
Financial System ◽  
Market Concentration ◽  
The Other ◽  
Real Economy ◽  
The Real ◽  
Other Hand ◽  
The One

This paper is devoted to the consideration of the preconditions and results of the banking sector of Ukraine transforming, its influence on the sector’s productivity, stability and significance for the real economy. It’s grounded that banking sector of Ukraine has seriously weakened its potential for the economic development stimulation. On the one hand, due to the banking sector clearance from the bad and unscrupulous banks the system has become much more sensitive to the monetary instruments and its state is going to be more predictable and better controlled. But on the other hand, massive banks’ liquidations have caused the worsening of the confidence in financial system and radical increasing of the market concentration the highest degree of which is observed in the householders’ deposit market.

Loan for Manufacturers Will Become More Affordable

Auditor ◽  
2018 ◽  
Vol 4 (3) ◽  
pp. 3-9
Author(s):  
Е. Смирнов ◽  
E. Smirnov
Keyword(s):  
Syndicated Loans ◽  
Real Economy ◽  
Federal Law ◽  
The Real ◽  
The Government

Entered into force in February this year, the federal law on syndicated loans, according to analysts of the Russian Parliament and the Government of Russia, will signifi cantly increase lending in the real economy and at the same time reduce the risks of creditors.

Trennbankensystem – ein Weg zu mehr Finanzstabilität in Deutschland?

2014 ◽  
Vol 15 (1) ◽  
pp. 41-55 ◽  
Author(s):  
Andreas Dombret ◽  
Thilo Liebig ◽  
Ingrid Stein
Keyword(s):  
Significant Role ◽  
Financial Stability ◽  
Banking System ◽  
Real Economy ◽  
The Real ◽  
Considerable Fraction ◽  
The Us ◽  
Proprietary Trading ◽  
Systemically Important Banks ◽  
The Eu

AbstractThis article examines how the introduction of a specialised banking system is likely to impact banks and the real economy in Germany, in particular from a financial stability perspective. This study is motivated by a recently passed law in Germany on a specialised banking system (Trennbankengesetz), current reforms in the US and UK and proposals for the EU. We focus on the consequences of a separation of the savings & loan business and proprietary trading. We conclude that proprietary trading plays a significant role only for large, systemically important banks in Germany. The latter act as universal banks and grant a considerable fraction of all loans that go to domestic enterprises and consumers. Costs for customers, however, are likely to be moderate. In contrast, a specialised banking system may provide the important advantage that insolvent trading units can be separated more easily from the savings & loan business arm and eventually liquidated. In this way, implicit state guarantees may be reduced.

scholarly journals Bank Specific and Macroeconomic Determinants of Commercial Bank Performance in Bangladesh

2021 ◽  
Vol 10 (2) ◽  
pp. 115-130
Author(s):  
Shakila Zerin Bony
Keyword(s):  
Commercial Bank ◽  
Audit Committee ◽  
Positive Relationship ◽  
Banking Sector ◽  
Management Policy ◽  
Bank Performance ◽  
Macroeconomic Factors ◽  
Wide Range ◽  
The Government ◽  
Macroeconomic Determinants

The main purpose of this study is to examine the impacts of bank-specific and macroeconomic factors on the commercial bank performance measures (ROA, NIM, and ROE in this case) in Bangladesh. The study identifies bank-specific characteristics and macroeconomic determinants of performance in Bangladesh’s banking sector over the years 2009 to 2018. The study uses relevant data from a sample of 10 commercial banks in Bangladesh. The determinants are identified by using correlation and regression analysis. This finding serves as an indicator that the bank-specific and macroeconomic variables selected for this study provide a better description of ROA rather than net interest margin (NIM) and ROE. Among all the bank-specific determinants board size, audit committee meetings, and foreign ownership have a positive relationship with the bank’s performance. Specifically, inflation and GDP are observed to have a positive relationship with bank performance. The findings of this research can be of great help to a wide range of entities such as academicians, bankers, the government, students, and investors. This study can be helpful to bank management by providing valuable information thus assisting in the construction of efficient management policy decisions in order to ensure higher profits.

scholarly journals ROLE OF THE FINANCIAL SECTOR IN FINANCING THE ENTERPRISES OF THE REAL SECTOR OF THE ECONOMY

2018 ◽  
pp. 78-84
Author(s):  
Dmytro Malysh
Keyword(s):  
Stock Market ◽  
Interest Rates ◽  
Banking Sector ◽  
Financial Sector ◽  
Bank Loans ◽  
Positive Trend ◽  
Real Sector ◽  
Real Economy ◽  
The Real

Introduction. Financial sector plays an important role in the financing of business entities in the real economy sector. A possibility of rising funds through the stock or banking sector enables substantially to expand the scope of enterprises. However, the presence of permanent financial crises does not allow companies to use these opportunities in full. Therefore, the assessment of state and trends of the stock and banking sectors in the context of the use of their funds to finance companies in the real sector of the economy becomes important. Purpose. The article aims to identify contemporary issues of development of the stock and banking sectors in the context of their ability to finance companies in the real economy. Method. In order to achieve the goal of the research we have used the following methods: method of structural and dynamic analysis and method of economic and statistical analysis of the development of the stock and banking sectors of Ukraine. Results. It has been determined that the deterioration of the stock market in Ukraine led to its exclusion from the list of marginal markets. The largest segment of the Ukrainian stock and banking sector services the issuers, which are owned by the state. At the same time, the financial sector has features of bank-centeredness since banks play a leading role in financing of companies and in transactions of the stock market. Ukrainian stock market mainly carries out operations with government bonds and only a small part of operations provides financing for the activities of companies through the issue of stocks and bonds. The share of long-term sources of funding is gradually decreasing and it is critically low for economic growth of the country. The tempos of providing long-term and short-term bank loans for the company are slowing down. A positive trend is the reduction of interest rates on loans. There is a need to develop effective measures for using opportunities of the stock and banking sectors as well for financing companies in the real sector of the economy.

scholarly journals THE POLICY OF FOREIGN PORTOFOLIO INVESTMENT LIBERALIZATION AND ITS IMPLICATIONS TOWARD THE NATIONAL BANKING POLICY ON GIVING THE CREDIT TO THE SMALL AND MEDIUM ENTERPRISES

2018 ◽  
Vol 1 (02) ◽  
pp. 121
Author(s):  
Sugeng Ribowo
Keyword(s):  
Developing Countries ◽  
Financial Stability ◽  
Banking Sector ◽  
Financial Institution ◽  
Small And Medium Enterprises ◽  
Financial Globalization ◽  
Investment Liberalization ◽  
The Government ◽  
Strong Control ◽  
Traditional Activity

Foreign Portofolio Investment is one of the parts of foreign investment policy,its existence has the important role to the economic development of a country,especially to the developing countries to prevent the deficit of a country.Indonesia is one of developing countries that has implemented the policyrapidly by liberating foreign portofolio investment. This makes the foreignfund flood Indonesia without any control. Its legally caused legislationproduct regulating the kinds of this investment subtancially do not regulatelegal precision between two countries. Therefore, it gives overborrowingimpacts that have to be guaranted by a country in a certain time. Its differentfrom other developing countries determined foreign portofolio investment withthe strong control and given tax disincentive to the investors, such as China,Corea, Thailand and others.The behavior of this policy, is appereant and it cannot be separate fromforeign influence that suggested by International Monetary Fund (IMF) andWorld Bank (WB) as a financial international institution with the basicfinancial globalization. Financial globalization, directly and indirectly hassupported the government policy that is very kind to the foreign intervention.Its evidenced by the dominated legalize by the ownership of foreign stock inforeign right corporation or financial institution (banking) that has implicitlythrough laws. Therefore, foreign portofolio investment has caused themagnetic strength, especially banking institution to get the traget of big gainby buying and selling it to foreigner than distributing of credit to the smalland medium enterprises.This phenomenon, implicates to the change to the policy in the banking sector,banking experienced shifting of vital function that as to be able to allocate thefund source to the society efficienly and effectivetely. The shifting of vitalbanking function, from traditional activity to the non-traditional activity iscaused by the complicated problems like institution, regulation, andglobalization, especially financial globalization. Therefore, the strength of thestate about political economy is the main solution to solve these problems.This research, will be analyzed comprehensively about the Policy of Foreign Portofolio Investment Liberalization and its Implications toward the NationalBanking Policy on Giving the Credit to the Small and Medium Enterprises.Beside, this research will also be explained the relevant policy to solve thevital functions of banking as intermediation institution to the small andmedium enterprises, its influence can be hoped to the financial stability andeconomic development sustainability.Key words: liberalization, foreign portofolio investment, financial globalization, politicaleconomy, national banking

Brazil impeachment battle will do short-term damage

2015 ◽  
Keyword(s):  
Financial Markets ◽  
First Year ◽  
Real Economy ◽  
Short Term ◽  
Content Type ◽  
The Real ◽  
The Government ◽  
Legal Grounds ◽  
Deep Recession ◽  
Foregone Conclusion

Significance This comes near the end of a tremendously challenging first year of Rousseff's second term, marked by collapsing popularity, mass protests and deep recession. However, impeachment is far from a foregone conclusion. The legal grounds are unclear and the government seems more likely than not to have enough congressional support to stave off the process. Indeed, the timing could increase the odds that Rousseff will complete her term. Impacts Financial markets will be especially volatile in the coming months. At best, a recovery in the real economy will not start before late 2016 or even 2017. Nevertheless, impeachment turbulence could gradually lead to more stable politics.

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