Bank lending of the real sector of economy

2018 ◽  
Vol 93 (2) ◽  
pp. 32-40
Author(s):  
S. A. Vlasiuk ◽  
◽  
N. V. Bondarenko ◽  
Keyword(s):  
Bank Lending ◽  
Real Sector ◽  
The Real

Commercial Banks Credit and the Performance of Real Sector in Nigeria: 1990-2017

2020 ◽  
pp. 1-15
Keyword(s):  
Central Bank ◽  
Commercial Banks ◽  
Agricultural Sector ◽  
Manufacturing Sector ◽  
Bank Lending ◽  
Real Sector ◽  
Agricultural Credit ◽  
The Real ◽  
Scientific Discussion ◽  
The Cost

The study examined the arguments and counterarguments within the scientific discussion on commercial banks credit and the performance of real sector in Nigeria. The main objective of the study is to examine the effect of commercial banks credit on the performance of the real sector in Nigeria.Data was sourced from Central Bank of Nigeria Statistical Bulletin. A systematization literary approach for data analysis was Regression Analysis. Findings revealed that bank credit and bank lending rate does not have significant impact on real sector performance in Nigeria. It was showed that there was a positive and significant relationship between agricultural credit guarantee scheme fund and agricultural production in Nigeria. The study therefore recommends that banks should be directed to channel their credits towards the real sector to facilitate overall economic growth and development in Nigeria. It was recommended that there is the need policies that will favor the revamp of the agricultural sector in Nigeria should be given pride of place. Also, monetary authority through the Central Bank of Nigeria should create adequate policies and strategies towards deepening of the financial sector and reducing the cost of credit/loans so as to enhance productivity and consequently enhance the growth of the key sectors of economy such as manufacturing sector.

scholarly journals The Future of Banking System and Economic Development in Nigeria

2015 ◽  
Vol 20 (1) ◽  
Author(s):  
Olu Ajakaiye ◽  
M. Adetunji Babatunde
Keyword(s):  
Economic Development ◽  
Business Model ◽  
Commercial Banks ◽  
Banking System ◽  
Bank Lending ◽  
Real Sector ◽  
The Real ◽  
Access To Credit ◽  
The Future ◽  
Banking Business

This study examined the future of banking system and economic development in Nigeria in the context of the demand following hypothesis. Although, the Nigerian economy has witnessed steady growth, the productive base of the economy is narrow. This therefore requires that banks must engage in an effective financial intermediation process to aid the transformation of the real sector as an engine of growth. However, while the deposits mobilized and assets base of the commercial banks has increased in leap and bounds, the real sector access to credit is on the decline. Rather, the bulk of the funds are invested on government short term securities given their risk free characteristics which reflect the lazy bank syndrome. Prohibitively high cost of credit and existence of hidden charges also inhibit real sector access to commercial banks loan. Hence, to reconnect the banking system with the real sector, there is a need to discourage armchair banking business model and encourage supportive banking business model, lending and secure appropriate maturity profile of loans to the real sectors, promote modified collateral bank lending model, and encourage specialization of bank branches. These are expected to aid the growth of the real sector and fast track the process of economic development in Nigeria.

Monetary Policy and Commercial Bank Lending to the Real Sector in Nigeria: A Time Series Study

2018 ◽  
Vol 2 (1) ◽  
pp. 10-41
Author(s):  
Ogolo . ◽  
Tamunotonye Magnus
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Interest Rate ◽  
Money Supply ◽  
Commercial Banks ◽  
Bank Lending ◽  
Real Sector ◽  
Treasury Bill ◽  
The Real ◽  
Negative Effect

This study empirically examined the effects of monetary policy on commercial banks lending to the real sector from 1981 – 2014. The objective was to examine the effectiveness of monetary policy in channeling bank credit to the real sector. Annual time series data were sourced from Central Bank of Nigeria statistical bulletin. Two multiple regression models were specifically estimated with the aid of Software Package for Social Sciences. The study modeled commercial banks credit to agricultural and manufacturing sector as the function of interest rate, monetary policy rate, treasury bill rate, exchange rate, broad money supply and liquidity ratio. The result shows collinearity that corresponds with the Eigen value condition index, and variance constant are less than the required value. The Durbin Watson statistics shows the absence of multiple auto correlation and negative autocorrelation, while the variance inflation factors indicate the absence of auto-correlation. The regression results from model one found that interest rate, monetary policy rate have positive relationship with commercial banks lending to the agricultural sector while Treasury bill rate, exchange rate, broad money supply and liquidity ratio have negative effect on the dependent variable. Model two found that interest rate, Treasury bill rate, exchange rate, broad money supply and liquidity ratio have negative effect on commercial banks lending the manufacturing sector while monetary policy rate have positive relationship with the dependent variable. We recommend that monetary policy should be harmonize with bank lending objectives to enhance commercial banks lending to the real sector of the economy and that management of commercial banks should formulate policies of managing the negative effect of monetary policy variables on its lending.

scholarly journals The Role of Bank Lending in the Development of Ukraine’s Economy

2020 ◽  
Vol 3 (45) ◽  
pp. 176-183
Author(s):  
V. M. Kremen ◽  
◽  
O. I. Kremen ◽  
L. P. Huliaieva ◽  
◽  
...  
Keyword(s):  
Capital Investment ◽  
Bank Lending ◽  
Real Sector ◽  
The Real ◽  
Goods And Services ◽  
Estate Property ◽  
The Impact ◽  
The Relationship ◽  
Average Monthly Salary ◽  
Monthly Salary

The purpose of the article is to analyze the situation with bank lending to the real sector and its impact on the development of Ukraine’s economy. In order to effect this purpose, the following tasks have been fulfilled: to analyze the dynamics of the total bank lending to the real sector, to analyze the structure of bank lending to non-financial corporations by loan terms and by currency; to determine the volume of loans granted to non-financial corporations in order to buy, build and reconstruct real estate property. To carry out in-depth assessment of the impact made by bank lending to the real sector on economic development, a correlation and regression analysis has been made, revealing that the increase in bank lending to non-financial corporations leads to the growth of the GDP, industrial output (in goods and services), exports, capital investment and average monthly salary and wages. It also reduces the amount of man-power employed, which may serve as the evidence of production intensification and automation caused by using loan proceeds. The polynomial function most appropriately describes the relationship between the volume of bank lending to non-financial corporations and GDP, exports and employment in 2005-2019, and the exponential function most adequately describes the relationship between the volume of bank lending to non-financial corporations and capital investment and the average monthly salary and wages.

scholarly journals BANK LENDING OF INNOVATIONS IN THE REAL SECTOR OF THE REPUBLIC OF KAZAKHSTAN: CURRENT TRENDS AND PROBLEMS

2020 ◽  
Vol 2 (330) ◽  
pp. 49-56
Author(s):  
Z. Gusmanova ◽  
◽  
A. Kurmanalina ◽  
K. Yermekova ◽  
◽  
...  
Keyword(s):  
Bank Lending ◽  
Real Sector ◽  
The Real ◽  
Current Trends ◽  
The Republic

scholarly journals Bank Lending Efficiency in the Real Sector of the Economy of Ukraine within the Period of 2011 to 2014 Years

2015 ◽  
Vol 06 (12) ◽  
pp. 1209-1218 ◽  
Author(s):  
Mohammad Ayaz Ahmad ◽  
Grigorii P. Kots ◽  
Vyacheslav V. Lyashenko
Keyword(s):  
Bank Lending ◽  
Real Sector ◽  
The Real

scholarly journals Bank Lending in the Knowledge Economy

2020 ◽  
Author(s):  
Giovanni Dell'Ariccia ◽  
Dalida Kadyrzhanova ◽  
Camelia Minoiu ◽  
Lev Ratnovski
Keyword(s):  
Knowledge Economy ◽  
Bank Lending ◽  
Mortgage Lending ◽  
Bank Loan ◽  
Intangible Capital ◽  
Real Sector ◽  
The Real ◽  
Substantial Growth ◽  
Loan Portfolios ◽  
Secular Decline

Abstract We study the composition of bank loan portfolios during the transition of the real sector to a knowledge economy where firms increasingly use intangible capital. Exploiting heterogeneity in bank exposure to the compositional shift from tangible to intangible capital, we show that exposed banks curtail commercial lending and reallocate lending to other assets, such as mortgages. We estimate that the substantial growth in intangible capital since the mid-1980s explains around 30% of the secular decline in the share of commercial lending in banks' loan portfolios. We provide suggestive evidence that this reallocation increased the riskiness of banks' mortgage lending.

scholarly journals Peran Pinjaman Bank Terhadap Sektor Riil (Pendekatan Vector Autoregressive)

2012 ◽  
Vol 4 (1) ◽  
Author(s):  
Aula Ahmad Hafidh
Keyword(s):  
Time Lag ◽  
Bank Lending ◽  
Positive Influence ◽  
Real Sector ◽  
Bank Lending Channel ◽  
Vector Autoregressive ◽  
The Real ◽  
Lending Channel

This paper examines how bank lending channel could affected the real sector. The result shows that bank lending have positive influence in the Indonesia real sector. Using Vector Autoregressive (VAR), bank lending affect real sector with time lag. In this paper, real sector divided into two block, household and firm. Household faster to react in increasing bank lending by consumption rise.

scholarly journals Assessment of the impact of bank lending on business entities’ performance using structural equation modeling

2021 ◽  
Vol 16 (2) ◽  
pp. 68-77
Author(s):  
Dinara Kerimkulova ◽  
Minara Nazekova ◽  
Aizada Sovetbekova ◽  
Oleksii Muravskyi ◽  
Galyna Krasovska
Keyword(s):  
Structural Equation Modeling ◽  
Structural Equation ◽  
Statistical Significance ◽  
Software Tool ◽  
Bank Lending ◽  
Equation Modeling ◽  
Real Sector ◽  
The Real ◽  
Business Entities ◽  
The Impact

The paper aims to assess the influence of bank lending on the performance of enterprises in the real sector. The relevance of the study for different countries, including Kazakhstan, Kyrgyzstan and Ukraine, is shown. Structural equation modeling of the impact of bank lending on the performance of enterprises in the real sector is carried out using Ukraine as an example. Six key indicators of real sector enterprises’ performance for the period of 2007–2019 were selected as an information basis of the study. To assess the abovementioned impact, structural equation modeling was used, i.e., the Statistica program was selected as a software tool to evaluate the resulting model’s adequacy and determine the level of statistical significance of its parameters. The obtained results prove that the business lending sector in Ukraine has significant potential for its development, which ultimately will have a positive effect on the efficiency of the real sector enterprises. Moreover, adopting a balanced state policy in the sector of corporate bank lending can give impetus to the development of the domestic sector of real production and help Ukrainian enterprises overcome the crisis caused by COVID-19.

scholarly journals STANDARDIZATION AS A FACTOR OF REDUCING CREDIT RISKS OF INVESTMENT PROJECTS

2019 ◽  
pp. 145-152
Author(s):  
Aleksandr Evgenievich Ushanov
Keyword(s):  
Interest Rates ◽  
Weighted Average ◽  
Bank Lending ◽  
Product Line ◽  
Necessary Condition ◽  
Real Sector ◽  
The Real ◽  
Investment Projects ◽  
The Impact

Investment bank lending to enterprises of the real sector of the economy is an important source of long-term financial resources, a necessary condition for the progressive, innovative development of the economy. The increase of credit debt by14.3% for a period of 1-3 years and by 21.2% for a period of more than 3 years in the last time is the evidence of emerging positive course in the volume of financing of investment projects of companies. There have been given data on weighted average interest rates of banks on lending and deposit operations in January and May in 2018. Despite the positive dynamics of the volume of long-term lending to the real sector of the economy by Russian commercial banks, there are still factors constraining this process: specific risks inherent in this product line, as well as management errors in the evaluation of investment projects. The risks include the factors related to the prospects of development of the borrower's business, the future state of the industry. Management errors include insufficient consideration of the impact of macroeconomic factors (inflation, etc.), incorrect calculations of the initiators' participation in the project, etc. It has been stated that risks and errors can be minimized by using a process approach to management, in which each structural unit of the credit institution ensures implementation of specific business processes, in which it participates. It has been inferred that one of the effective ways to improve the business process of lending to investment projects in order to reduce transaction risks is its standardization. There have been listed several quality standards of banking processes approved by the Association of Russian Banks. It has been proposed to introduce the Standard of the process of lending investment projects into the practice of banks. There has been worked out the matrix of requirements for the components of the process reflecting the content of the current practice of leading credit institutions working in the field of investment lending.

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