Lack of Credit in Albania; Who is to “Blame” Analyzing the Demand

2015 ◽  
Vol 3 (1) ◽  
pp. 122
Author(s):  
Eugen Musta ◽  
Elvin Meka
Keyword(s):  
Interest Rates ◽  
Small Sample ◽  
Economic Situation ◽  
Demand Side ◽  
Working Capital ◽  
Global Crisis ◽  
High Interest ◽  
Future Perceptions ◽  
Economic Slowdown ◽  
To Come

The last global crisis had it influence on Albanian economy as well. As the economy is still struggling to recover from the slowdown, a special attention is dedicated to lending which will in turn help investments pick up. Banks in Albania are currently flooding in excess deposits, but meanwhile the lending has hit its lowest score. What is refraining banks from lending? Is it really them to blame or maybe the demand is also part of the problem? Are businesses suffering from lack of funds to finance their activity or are they hesitating to invest and are waiting for better times to come along? The purpose of this study is to look into these questions and find the reasons behind them. This paper is focused on the demand side, analyzing some of the most important indicators influencing the demand for credit like enterprises growth, profits, planned investments, working capital needs, liquidity, etc. In order to get better understanding on the behavior of these variables the enterprises are divided in four groups by size criteria. The analysis is covering data for five-year timeframe, which is corresponding with the start of the economic slowdown. To help getting a prospect of the present and the future perceptions of the economic situation, a survey was conducted on a small sample of enterprises. This study comes to the conclusion that the demand for credit is growing, but what’s keeping businesses from applying for it, is mainly because of high interest rates and cost of credit, the study ends with some recommendations toward the solution.

The Role of Financial Innovation and the Derivatives Market in the World and Turkey in the Context of the Global Crisis of 2008

2017 ◽  
pp. 224-243
Author(s):  
Nizamülmülk Güneş
Keyword(s):  
Developing Countries ◽  
Interest Rates ◽  
Financial Market ◽  
Financial Innovation ◽  
Financial Instrument ◽  
Global Crisis ◽  
High Interest ◽  
The World ◽  
Derivatives Markets

In Derivatives markets, contracts made concerning an asset or a financial instrument between a buyer and a seller entered into today regarding a transaction to be fulfilled at a future point in time. The derivatives markets incorporate forward, swap, futures and options transactions. Banks, the principle actor in financial markets, finds derivatives favorable in developing countries like Turkey in which there is high interest rates and inflation. It is crucial to express the role of the derivatives markets, whereas the uncertainty concerns are perceived enormously. 2008 mortgage crises, the main cause is stated as to sheer of expectations, which started in US and spread out to all developed and developing countries evoke to encounter against risks intensely. The aim of this paper is to study how efficient is the use of the derivatives market instruments in Turkey, a developing country, by the banks and other financial market actors after the 2008 Global Crises.

scholarly journals Wenn Angst die Hoffnung besiegt

2005 ◽  
Vol 35 (138) ◽  
pp. 149-162
Author(s):  
Leda Paulani
Keyword(s):  
Interest Rates ◽  
Economic Situation ◽  
International Capital ◽  
High Interest ◽  
The Government ◽  
Austerity Policy

The victory of Lula and the PT in Brazilian elections in late 2002 was accompanied by the hope of a refoundation of society and freeing Brazil out of the ‘external trap’. The Lula-government argued that Brazil is on the brink of an abyss so that hard measures, like high interest rates and austerity policy are necessary. The article shows, that it were not the constraints of the economic situation but the decision of the government (trying to avoid conflicts with the forces of national and international capital) to continue the neoliberal politics of the former Cardoso administration.

The Role of Financial Innovation and the Derivatives Market in the World and Turkey in the Context of the Global Crisis of 2008

2018 ◽  
pp. 434-452
Author(s):  
Nizamülmülk Güneş
Keyword(s):  
Developing Countries ◽  
Interest Rates ◽  
Financial Market ◽  
Financial Innovation ◽  
Financial Instrument ◽  
Global Crisis ◽  
High Interest ◽  
The World ◽  
Derivatives Markets

In Derivatives markets, contracts made concerning an asset or a financial instrument between a buyer and a seller entered into today regarding a transaction to be fulfilled at a future point in time. The derivatives markets incorporate forward, swap, futures and options transactions. Banks, the principle actor in financial markets, finds derivatives favorable in developing countries like Turkey in which there is high interest rates and inflation. It is crucial to express the role of the derivatives markets, whereas the uncertainty concerns are perceived enormously. 2008 mortgage crises, the main cause is stated as to sheer of expectations, which started in US and spread out to all developed and developing countries evoke to encounter against risks intensely. The aim of this paper is to study how efficient is the use of the derivatives market instruments in Turkey, a developing country, by the banks and other financial market actors after the 2008 Global Crises.

scholarly journals Determinants of demand for banking facilities a practical study of a sample of beneficiaries in DHI QAR governorate

2020 ◽  
Vol 8 (1) ◽  
pp. 5
Author(s):  
Wafaa Chetheer Mazaal
Keyword(s):  
Interest Rates ◽  
Economic Situation ◽  
Financial Intermediary ◽  
Factors Affecting ◽  
High Interest ◽  
Investment Opportunities ◽  
Questionnaire Form

Banking facilities are a very important function, as banking departments are concerned about the most important aspects of the recruitment of their funds and the main source of their revenues, The banks have been and continue to act as a financial intermediary between the audience of depositors and investors, they collect savings and guide them to different areas of investment, So we find it interested in the development of credit policies that take into account the achievement of the objectives of the bank and satisfy the requirements of customers and banking laws and legislation, From here, the research highlighted the most important factors affecting the demand for these facilities by applying to a sample of beneficiaries in Dhi Qar Governorate through the distribution of a questionnaire form designed for that purpose, The results of the study showed that the most important of these factors is the high interest rates and discount, which is an obstacle in the request for banking facilities, In light of these recommendations, the most important of which was the need to reconsider the interest rates and discount to encourage customers to request banking facilities and commensurate with the prevailing economic situation and investment opportunities available.  

Demand for housing loans and interest rates in Russian regions

2021 ◽  
pp. 135-156
Author(s):  
A. V. Mishura
Keyword(s):  
Interest Rates ◽  
Average Rate ◽  
Supply And Demand ◽  
Weighted Average ◽  
Mortgage Market ◽  
Economic Situation ◽  
Russian Regions ◽  
High Interest ◽  
Demand Equations

This work examines the current world experience in assessing the sensitivity of household mortgage borrowing to interest rates. The data of the “bank— region—year” format are used to estimate supply and demand equations for housing loans issued by banks in the regions of the country in 2015—2018. Our estimations have revealed that the demand on the mortgage market in the regions is sensitive to the price of loans: when weighted average rate at which a bank issues mortgages in a region is lower by 1 percentage point it is associated with an increase in demand up to 20—25%, all other things being equal, that is, when taking into account the number of offices of a bank in that region, the economic situation and region’s characteristics in that year. Demand for mortgages is elastic at interest rates, which means that by lowering rates on mortgage programs, banks can expect an increase in demand, due both to an increase in overall demand for loans and to an overflow of borrowers from other banks. Consequently, it was confirmed that high interest rates on mortgages hinder the development of housing lending.

The problems facing agricultural sector in Zanzibar and the prospects of Waqf-Muzar’ah-supply chain model

Humanomics ◽  
2017 ◽  
Vol 33 (2) ◽  
pp. 189-210 ◽  
Author(s):  
Issa Salim Moh’d ◽  
Mustafa Omar Mohammed ◽  
Buerhan Saiti
Keyword(s):  
Supply Chain ◽  
Interest Rates ◽  
Financial Models ◽  
Agricultural Sector ◽  
Chain Model ◽  
Content Type ◽  
High Interest ◽  
Supply Chain Model ◽  
The Government ◽  
Clove Industry

Purpose This paper aims to identify the appropriate model to address the financial challenges in agricultural sector in Zanzibar. Since the middle of 1960, clove production has continually and significantly decreased because of some problems and challenges that include financial ones. The financial intermediaries such as banks, cooperatives and micro-enterprises provide micro-financing to the farmers with high interest rates along with collateral requirements. The numerous programmes, measures and policies adopted by the relevant parties to find out the solutions to the dwindling clove production have failed. Design/methodology/approach The authors will review and examine several existing financial models, identify the issues and challenges of the current financial models and propose an appropriate Islamic financing model. Findings The numerous programmes, measures and policies adopted by the relevant parties to find out the solutions to the dwindling clove production have failed. This study, therefore, proposed a Waqf-Muzara’ah-supply chain model to address the financial challenge. Partnership arrangement is also suggested in the model to mitigate the issues of high interest rates and collateral that constrains the financial ability of the farmers and their agricultural output. Originality/value The contribution of the agricultural sector to the economic development of Zanzibar Islands is considerable. As one of the important agricultural sectors, the clove industry was the economic backbone of the government of Zanzibar. This study is believed to be a pioneering work; hence, it is the first study that investigates empirically the challenges facing the clove industry in Zanzibar.

scholarly journals On high interest rates in Brazil

2014 ◽  
Vol 34 (1) ◽  
pp. 03-14 ◽  
Author(s):  
Francisco Lafaiete Lopes
Keyword(s):  
Interest Rates ◽  
High Interest

“Sound Finances”: Strategy or Soundbite

2017 ◽  
Vol 241 ◽  
pp. R13-R32
Author(s):  
Michael McMahon
Keyword(s):  
Interest Rates ◽  
Government Debt ◽  
Economic Situation ◽  
Public Finances ◽  
General Elections ◽  
Political Choices ◽  
Balanced Budget ◽  
The Government

A defining feature of (at least) the last three general elections has been the emphasis placed on each political party's fiscal credibility and their ability to deliver “sound public finances”. Applying the logic of household book-keeping, balancing the fiscal budget is said to capture such soundness. There is, however, little evidence that a balanced budget is necessarily sound. Instead, the evolution of public finances depends on (1) both the fiscal choices made on the level of spending and taxation, (2) the underlying growth of the economy which depends on far more than the fiscal decisions, and (3) interest rates on government debt and the financing needs of the government. As the economic situation changes, so too does the likely path of debt to GDP and hence the possible fiscal options open to a country. Sticking to the soundbite of “sound finances” has often distracted from the underlying menu of political choices and as such is a disruptive narrative in UK economics today.

scholarly journals High Lending Rates in Indonesia: Inflation Rates and Bank Inefficiencies

2020 ◽  
pp. 95-100
Author(s):  
Ari Christianti
Keyword(s):  
Interest Rates ◽  
Inflation Rate ◽  
Positive Impact ◽  
Panel Data Analysis ◽  
Consumer Credit ◽  
Commercial Banking ◽  
Working Capital ◽  
Operating Income ◽  
Lending Rates ◽  
Loan Interest Rates

Inefficient banking systems will affect the Indonesian economy resulting in a high lending rate structure which impacts the cost of capital in real sectors. This study aims to determine if the high lending rates in Indonesia are caused by the high inflation rate and bank inefficiencies. Using monthly panel data analysis from four categories of commercial banking in Indonesia for the period January 2009-December 2017, the results of the study show that operating expenses operating income (OEOI) and net interest margin (NIM) factors, as a measure of efficiency, have a positive impact on loan interest rates for working capital loans, investment loans and consumer loans. Furthermore, inflation rate has a positive effect on loan interest rates for working capital and investment loans only. However, this contrasts with consumer credit where the inflation rate has a negative effect on consumer credit rates. This might be attributed to the fact that interest rates for consumer credit consider default risk factors and high demand rather than inflation factors.

scholarly journals Effect of some economic indicators on external debt in Sudan from 2002-2017: أثر بعض المؤشرات الاقتصادية على الدين الخارجي في السودان للفترة 2002-2017

2019 ◽  
Vol 3 (12) ◽  
Author(s):  
Gosay Mahgoub mohammedsalih Baba,  Abdulazim Suliman Almahal
Keyword(s):  
Exchange Rate ◽  
Financial Crisis ◽  
Interest Rates ◽  
Current Account ◽  
South Sudan ◽  
External Debt ◽  
Balance Of Payments ◽  
Independent Variables ◽  
High Interest ◽  
Paris Club

    aim to determine the type and tracks of the correlation between variables of deficit of government budget، current account deficit of the balance of payments، exchange rate، Gross Domestic Product(GDP) on the total external debt and clarify the impact of separation or independence of South Sudan in September 2011،also the financial crisis in 2008 on variables of paper، the hypotheses included a positive correlation & impact between the independents variables deficit variables in the general budget and the deficit in the current account of balance of payments، GDP on dependent variable external debt of Sudan as the inverse correlation & impact between the exchange rate with total external debt for the period 2006-2017،used historical approach to describe reasons and evolution of the external debt problem of Sudan causes، in addition، analytical descriptive method by correlation test between the independent variables and the dependent variable to determine the relationship type، also used multiple regression model in measuring and estimating the effect of independent variables on the dependent. The results outcome،the cumulative value of bilateral debt and high interest rates (contractual interest and delayed interest) significantly affect the accumulation of Sudan's total foreign debt،،maintain both the deficits in budget and in current account also GDP values a positive correlation of statistical significance and a degree of impact on Sudan's external debt، with Reverse correlation exchange rate، caused from Both of the world financial crisis and the independence of South Sudan in 2011 the، indirect impact on the external debt through its effect of increasing the value of the dollar with a decline of local currency and increasing the budget deficit and its impact on external debt، However، refers the weakness of impact in current account due to growth of gold exports in the period under study. Also the high ratio of bilateral debt owed to non-members of the Paris Club and its high interest rates it is complicated possibility of a solution through the HIPC and others initiatives، The necessary of structural reforms in economic policies by focusing on supporting national production elements as to overcome the obstacles of domestic investment and the abolition of taxes and customs on Alumni projects، microfinance projects، exporters projects as well as trying to follow a rational economic policy using foreign loans in the narrowest limits، and focus on loans on concessional terms،necessary to create an economic partnership between Sudan and creditors countries focus of largest proportion of debts، which is the official bilateral debt (non-members of the Paris Club)، to promote and facilitate the position of Sudan in negotiation of initiative of the HIPC or With regard of interest rate because it is largest and most significant obstruction in Sudan external debt.    

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