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

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 How Hotel Industry Cope up with the COVID-19: An SME Perspective

ETIKONOMI ◽  
2021 ◽  
Vol 20 (2) ◽  
pp. 213-224
Author(s):  
Muhammad Nawaz Tunio ◽  
Lenny Yusrini ◽  
Zubair A. Shah ◽  
Naveeda Katper ◽  
Mushtaque Ali Jariko
Keyword(s):  
Developing Countries ◽  
Small And Medium Enterprises ◽  
Hotel Industry ◽  
Jel Classification ◽  
Structured Interviews ◽  
Qualitative Research Methodology ◽  
The Government ◽  
Medium Enterprises ◽  
Role Of The Government

This study aims to determine the plans and strategies adopted by the hotel industry during the COVID-19 crisis. In order to conduct this study, a qualitative research methodology was used where semi-structured interviews were conducted from three countries: Austria, Pakistan, and Indonesia. Interviews were conducted online with the help of applications such as Skype, WhatsApp, and Zoom. A thematic analysis was conducted in which codes, categories, and final themes were generated. The final themes are the study's findings, which are strategies for employees, strategies for customers, strategies for SME hotels, and strategies for the staff. Strategies for employees indicate the planning and programs of the SME Hotels. The study's findings show that strategies adopted by the hotel industries vary from country to country while depending on the contextual factors and role of the government. Most Small and Medium Enterprises (SMEs) hotels in developing countries are less familiar with how to react and survive in the conditions of the crises. Thus, this study can benefit the different stakeholders in the developed and developing countries for adopting strategies and maintain their business during the crises of the COVID-19.JEL Classification: B17, B27, F30, L83How to Cite:Tunio, M. N., Yusrini, L., Shah, Z. A., Katper, N., & Jariko, M. A. (2021). How Hotel Industry Cope Up With The Covid-19: An SME Perspective. Etikonomi, 20(2), 213 – xx. https://doi.org/10.15408/etk.v20i2.19172.

scholarly journals The economic situation in Iraq. Is there a way out in the current crisis?

2021 ◽  
Vol 14 (4) ◽  
pp. 102-118
Author(s):  
S. Yu. Babenkova
Keyword(s):  
Banking Sector ◽  
Financial Institution ◽  
White Paper ◽  
Economic Situation ◽  
Political Crisis ◽  
Economic Sectors ◽  
Current Crisis ◽  
The Real ◽  
The World ◽  
The Government

At present, the Iraqi economy is once again undergoing trials associated with an increase in unemployment, a drop in the standard of living of the population, especially in central and southern Iraq, as well as the almost complete dependence of budgetary revenues on fluctuating oil prices. This dependence on oil has left other important sectors of the country’s economy, such as agriculture and industry, in near collapse. Of course, the real political crisis in Iraq 3 should be viewed through economic indicators, given the country’s lack of a diversified economy. The revenues received from the sale of oil are not invested in the development of the necessary sectors of the economy or in innovations, but are distributed according to articles of domestic expenditures, including the maintenance of a large bureaucratic apparatus. When there is a shortage of income, in the event of an unfavorable price policy in the market, the government resorts to domestic and foreign borrowing. These steps induce the state to completely stop rebuilding what was destroyed during previous wars or to start developing other sectors of the economy.Against the background of the entire political and economic situation, the country’s financial sector is also going through hard times. The main products and services of the banks are focused on payroll projects, and they are also engaged in currency speculation in the auctions arranged by the Central Bank of Iraq. It also negatively affects the investment attractiveness of the country, since the receipt of «easy and fast money» by a financial institution practically eliminates the need for it to invest in the real sector of the economy, the principle of which is the basis, including Islamic financial institutions.In general, the economic picture of Iraq can be described in the following formulations. The country has the fourth proven crude oil reserves in the world, was the second largest producer of OPEC and the fourth largest producer in the world. The country has international financial organizations that provide international financial support (IMF, World Bank), including bilateral loans. There are more negative aspects, including large and almost widespread corruption, direct dependence of government revenues on oil exports, almost complete absence of non'oil sectors in the structure of economic sectors (especially the private sector), and a weak and limited banking sector. Of course, there is some hope that the White Paper for Economic Reforms 4 presented by the government of Mustafa al'Kadhimi, which identifies the main necessary reforms to restore the Iraqi economy, could become a certain benchmark for turning the current economic situation and the beginning of the necessary reforms. But on the eve of the elections, the political forces considered it in their own interests to oppose any reforms. In this regard, Iraq actually lost the opportunity to carry out full'fledged reforms, however, in our opinion, there is still little hope for recovery.

scholarly journals Uji Empirik Crowding Out Surat Utang Pemerintah dan Korporasi di Pasar Modal Indonesia

2018 ◽  
pp. 19 ◽  
Author(s):  
Buddi Wibowo ◽  
Hendrikus Passagi ◽  
Muhammad Budi Prasetyo
Keyword(s):  
Default Risk ◽  
Financial Stability ◽  
Banking Sector ◽  
Fixed Effect Model ◽  
Bond Market ◽  
Corporate Bond ◽  
Crowding Out ◽  
Yield Spread ◽  
Corporate Bond Market ◽  
The Government

Financing government budget deficit through emission of government  bonds may create a crowding out in corporate bond market. Crowding out caused the cost of funds incurred by the corporation to be expensive so the corporate bond market is stagnant and banks become the only major source of funding. Sources of funding that are so dependent on the banking sector could threaten financial stability and the country's economy as a whole because of the banks’ systemic risk. Default of a bank not only can influence other banks but also can have a serious impact on the national economy. This research empirically examine the phenomenon of crowding out in Indonesia with a fixed effect model of panel data FGLS and show existence of crowding out, where the yield spread tends to rise when the government issued new debt securities. But the rise in the yield spread was more due to the increase in Credit Default Swaps (CDS) spreads which reflect the default risk of Indonesia, as well as showing the influence of foreign investors in the Indonesian capital market which is strongly influenced by  CDS.

scholarly journals An Exploratory Study of the Impact of Government Policies on the Development of Small and Medium Enterprises in Developing Countries

2020 ◽  
pp. 1205-1218
Author(s):  
Olusegun Dosumu ◽  
Javed Hussain ◽  
Hatem El-Gohary
Keyword(s):  
Developing Countries ◽  
Qualitative Methodology ◽  
Small And Medium Enterprises ◽  
Capital City ◽  
Government Policies ◽  
Technology Infrastructure ◽  
Face To Face ◽  
Research Findings ◽  
The Government ◽  
Medium Enterprises

This paper explores the effects of government policies on the development of Small and Medium Enterprises in developing countries through the examination of the case of Nigeria. Many research studies reported that SMEs in Nigeria have not benefited from the policies formulated by the government. This paper investigates the impediments to manufacturing SMEs growth and the needed pre-requisite environment for SMEs to benefit from government specific policies. The study adopted a qualitative methodology depending on face to face interviews with 20 SME owners and/or managers in five of the six geographical arears of Nigeria, 20 bank managers in the capital city of Lagos and 20 government officials located in the federal capital city of Abuja. The study unveils unique contextually novel insights, including particularly the distinctive processes and different relationships related to lenders decision. The research findings are consistent with those reported by other scholars in the field, and confirm that government policies and support in the areas of technology, infrastructure and finance affects the performance of SMEs to a great extent in Nigeria.

scholarly journals POST DEMONETISATION EFFECT ON BANKING SECTOR, MICRO FINANCING INSTITUTIONS (MFI) AND JOB OPPORTUNITIES

2020 ◽  
Vol 6 (2) ◽  
pp. 39-44
Author(s):  
Kandarp Vidyasagar ◽  
Rajiv Kr. Dwivedi
Keyword(s):  
Banking Sector ◽  
Financial Institution ◽  
Poverty Line ◽  
Economic Conditions ◽  
Secondary Sources ◽  
Employment Sector ◽  
Job Opportunities ◽  
The Government ◽  
To Come ◽  
Good Number

Purpose of this study: This study aims at investigating the effect of demonetisation on the major sectors of the Indian economy i.e. banking sector, micro-financing sector, and employment sector. The government of India claims demonetisation as a tool to tackle inflation, black money, corruption, crime, and terror funding, while others call it harassment attitude. Methodology: In this regard, a survey has been done to collect data from secondary sources. Further data were analysed graphically. Results: The study reveals that there is marginal control over black money. The financial institution RBI suffered a loss due to excess of cash collection and failed to regulate the money properly. The employment sector is affected and a good number of people lost their jobs. Also, micro-financing institutions (MFI’s) business was affected worstly. Social Implications/Applications: The MFIs and SMEs should be promoted and provided with legal financial assistance in order to compensate for their loss so that the 30% of citizens living below the poverty line get relief. Novelty/Originality of this study: This combined study on various sectors gives a clear picture of the effects of post demonetisation in India which can help in predicting Indian economic conditions for the years to come.

scholarly journals An Institutional Approach to Female Entrepreneurship in Nigeria

JWEE ◽  
2018 ◽  
pp. 31
Author(s):  
Ann Terngu Makar Vandefan
Keyword(s):  
Developing Countries ◽  
Small And Medium Enterprises ◽  
Female Entrepreneurship ◽  
Female Entrepreneurs ◽  
Unemployment Rates ◽  
Medium Scale ◽  
Institutional Approach ◽  
Institutional Frameworks ◽  
The Government ◽  
Medium Enterprises

With the increase in population and unemployment rates globally, especially in developing countries like Nigeria, the government of most nationals is unable to provide adequate jobs for their teeming population. This study is to ascertain the Institutional Approach to Female entrepreneurship in Nigeria.  There are about 37,067,416 micro businesses and 36,994,578 Small and 4,670 Medium Scale businesses respectively in Nigeria (SMEDAN 2010, SMEDAN 2013 & SMEDAN 2015). Female entrepreneurs accounted for ownership of 43.32% of Microenterprises and 22.75% of Small and Medium enterprises respectively (NEPZA 2013). Yet there is no clear Institutional Approach to Female Entrepreneurship in Nigeria. The focus of this article is to explain the reasons for the lack of institutional approach and proffer ways to developing same.  This is imperative in order to develop institutional frameworks for providing effective support for female entrepreneurs

scholarly journals Information Disclosure in China’s Rising Securitization Market

2021 ◽  
Vol 9 (4) ◽  
pp. 66
Author(s):  
Xueer Chen ◽  
Chao Wang
Keyword(s):  
Moral Hazard ◽  
Adverse Selection ◽  
Financial Institutions ◽  
Information Disclosure ◽  
Financial Stability ◽  
Banking Sector ◽  
Information Transparency ◽  
Internet Finance ◽  
The Government ◽  
Market Needs

E-commerce and FinTech are currently booming in China. The growing consumer market is accompanied by internet finance, by which consumers can easily borrow money from financial institutions online. As a result, the growing risks of financial institutions are of concern to the government and regulatory bodies. Consequently, the securitization market in China is seeing rapid growth that could affect financial stability. Applying FinTech and emerging technologies in securitization might be an effective way to protect against these risks. This paper studies the question of whether China needs a higher standard of information transparency in order to protect against its risks against the background of digital transformation. We analyzed the determinants of securitization in the Chinese banking sector, relying on data on banks for two periods: pre-2017Q4 and post-2017Q4. The main findings of the paper demonstrate that the application of FinTech in China’s banking industry resulted in less information asymmetry. The risk exposure was the most significant determinant in general. Higher risk exposures increased securitization transaction volumes, which reflects securitization with adverse selection problems between the originator and investors. Liquidity and profitability, as important determinants indicating the moral hazard problem, also affected securitization pre-2017Q4, but liquidity and profitability were found to be unimportant determinants after the application of FinTech (the post-2017Q4 period). Moreover, this study finds that the effects of the adverse selection and moral hazard problems varied in different types of banks. Overall, our findings suggest that the Chinese securitization market needs a higher standard of information transparency.

scholarly journals Conceptualizing Challenges to Electronic Human Resource Management (e-HRM) Adoption: A case of Small and Medium Enterprises (SMEs) in Tanzania.

2020 ◽  
Vol 8 (4) ◽  
Author(s):  
Namrata Shah ◽  
Francis Michael ◽  
Henry Chalu
Keyword(s):  
Developing Countries ◽  
Resource Management ◽  
Human Resource Management ◽  
Human Resource ◽  
Small And Medium Enterprises ◽  
Developed Countries ◽  
Internet Security ◽  
Full Potential ◽  
Tam Model ◽  
The Government

Most of the Small and Medium-sized Enterprises (SMEs) in the developing countries are yet to espouse and witness the full potential of electronic Human Resource Management (e-HRM) in their business operations despite its popularity in the developed countries. SMEs indispensable role in economic growth regarding employment creation and their contribution to GDP is globally acknowledged. A successful adoption of e-HRM may be the catalyst for the growth of Tanzania and many developing countries. Unfortunately, the application of e-HRM by the SME sector in Tanzania lacks depth and has been scrimpy. Numerous reasons and factors account for the low adoption rate of e-HRM by Tanzanian SMEs. This study aspires to address this scantiness by investigating e-HRM adoption to overcome the barriers that confront the SME sector in their quest to adopt e-HRM. Financial barrier was the most relevant among the five group of barriers. However, technical and Internet security prove to impede the adoption too. Thus to stimulate the adoption of e-HRM to increase productivity and enhance global competiveness, stakeholders and the government should invest in e-HRM and its components. Specifically, the paper delineates challenges of e-HRM adoption. A systematic desk review presents the evolution of prominent TAM model to fit contextual requirements and research advancement. This review thus culminates in a synthesized conceptual framework useful in research on e-HRM in the SMEs.

Technological Hurdles to Caribbean E-Commerce

2010 ◽  
pp. 147-163
Author(s):  
William Wresch ◽  
Simon Fraser
Keyword(s):  
Developing Countries ◽  
Banking Sector ◽  
Small And Medium Enterprises ◽  
The United States ◽  
Caribbean Region ◽  
Payment Systems ◽  
Business Systems ◽  
Managerial Skills ◽  
Business Executives ◽  
Medium Enterprises

Studies summarized by the United Nations Commission on Trade and Development continue to show that Small and Medium Enterprises (SMEs) in developing countries face particular problems with managerial skills, connectivity, branding, logistics, security, and foreign competition. Yet the same studies note that barriers and e-commerce efforts vary considerably from one region of the world to another. To determine if these barriers are significant in the Caribbean region, during July and August of 2004, the principle investigators visited business executives in five Caribbean nations. 36 businesses and government agencies were interviewed. General results showed significant e-commerce efforts underway in these countries with most enabling technologies and business systems in place. However, several major barriers were repeatedly encountered. Logistics challenges, including shipping and customs barriers, as well as recent import controls in the United States were frequently mentioned. Many also described a banking sector unwilling or unable to facilitate convenient electronic payment systems. Nevertheless, executives described a number of e-commerce strategies which could be adopted by other SMEs that wish to increase their e-commerce income. The investigators present four managerial characteristics that were seen in the leading businesses. The authors hope the results of this study will suggest improved strategies for SMEs in developing countries seeking to use e-commerce to expand their markets.

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