scholarly journals A Study on Non Conventional Financing with Special Reference to ‘P2P Lending’ and its Growth during Covid-19 Pandemic in India

2021 ◽  
Vol 9 (1) ◽  
pp. 115-118
Author(s):  
Arya Gopakumar
Keyword(s):  
Banking System ◽  
Global Market ◽  
Initial Growth ◽  
Domestic Currency ◽  
Conventional System ◽  
Discussion Paper ◽  
P2p Lending ◽  
P2p System ◽  
Private Financing ◽  
Start Ups

The new financial face imploded after the collapse of the so longed conventional system in 2008 after demonetisation, and following covid-19 pandemic, India witnessed a millions of extraordinary debt bearing borrower in all sectors. The instable stock markets, bond prices and devaluation of domestic currency popularized the term dis-intermediation and prompted more investors to turn to a cashless financial system and non-conventional sources funding. With the gradual growth of global market Indian potential investors and borrowers face some financial challenges and this is where these digitalisation and green banking system became an inevitable technology which enabling them to operate more efficiently and at cost advantage than the traditional banking system. Several online portals have sprung up in India to facilitate such lending, especially after demonetisation and some even getting private financing and investments from investors, even it isis still at an emerging stage comparing with US and China. RBI brought a discussion paper on P2P lending in April 2016, it points that there were 30 such start-ups have emerged in the country. After that it have been proceeded as a fast-growing sector and came out with some regulations in October 2017 and this study aims to analyse the mode and operations of the non-conventional lending P2P system and its initial growth during pandemic period.

Was the Bank Holiday of 1933 Caused by a Run on the Dollar?

1987 ◽  
Vol 47 (3) ◽  
pp. 739-755 ◽  
Author(s):  
Barrie A. Wigmore
Keyword(s):  
New York ◽  
Foreign Exchange ◽  
Federal Reserve ◽  
Deposit Insurance ◽  
Banking System ◽  
Domestic Currency ◽  
New Information ◽  
The Stability ◽  
Specific Timing

International, rather than domestic, causes of both the Bank Holiday of 1933 and the calm in the banking system that followed are emphasized here. New information on gold losses by the New York Federal Reserve, rather than domestic currency hoarding, serve to explain the Bank Holiday's specific timing. Expectations that Roosevelt would devalue the dollar stimulated much of the gold loss. I also argue that Roosevelt's restrictions on gold holdings and foreign exchange dealings and his devaluation of the dollar by 60 percent were more important to the stability of the banking system after the Bank Holiday than was deposit insurance.

scholarly journals Too Much Technology and Too Little Regulation? The Spectacular Demise of P2P Lending in China

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Ding Chen ◽  
Simon Deakin ◽  
Andrew Johnston ◽  
Boya Wang
Keyword(s):  
Banking Sector ◽  
Central Government ◽  
Focal Point ◽  
Banking System ◽  
Internal Controls ◽  
Banking Activity ◽  
P2p Lending ◽  
Fundamental Uncertainty ◽  
The Government ◽  
Specific Regulation

Abstract In this paper we trace the rapid growth and spectacular demise of online peer to peer lending in China. Drawing on a series of interviews conducted in China in 2017 and 2018, we follow the expansion of the sector from the establishment of the first major platform in 2007, through the introduction of limited regulation in 2015 in response to a series of platform failures to the final de facto closure of the whole sector by the regulator in 2019–20. However, contrary to claims that technology would reduce risk, the new platforms appear to have given rise to new risks by connecting dispersed borrowers and lenders whilst the regulator had decided to leave the sector to evolve without specific regulation. While there were hopes that P2P lending might increase flows of finance to the SMEs that are excluded from the formal banking system, ultimately too much of the activity on the P2P platforms was characterised by what we term ‘transactional ambiguity’ and ‘legal fluidity’: it occurred on the fringes of legality, often amounting to Ponzi schemes, fraud or unlicensed banking activity. In contrast to the banking sector, where their intermediation role ensures that banks are the focal point in the event of borrower default, and conventional moneylending, where moneylenders bear the risk of default, defaults and platform failures in the P2P sector distributed losses far and wide around the country, often to lenders who were not capable of bearing them. Whilst the central government did not formally stand behind the P2P sector (as it does with banks because of the systemic implications of their operations), the government could not help but become involved where P2P lending transmitted losses to lenders who were dispersed around the whole country. Ultimately, central government announced a wholesale reversal of policy that led to the sector effectively being closed down. The episode cautions against overly optimistic claims that technology can eradicate the risks of fraud and fundamental uncertainty inherent in lending, and reminds us that, without appropriate regulation and adequate internal controls, financial institutions will always operate in ways that result in instability.

scholarly journals The competitiveness of Ukraine’s banks in the world banking market

2018 ◽  
pp. 81-98
Author(s):  
Yevheniia Voinova
Keyword(s):  
Banking Sector ◽  
Foreign Capital ◽  
Internet Banking ◽  
Global Market ◽  
Banking Services ◽  
Banking Market ◽  
The World ◽  
Start Ups ◽  
Regional Banks

The article examines the market of banking services in Ukraine through comparing indicators of competitiveness of Ukrainian banks and banks with foreign capital in the domestic market and global market. Taking into account the network-type structure of banks, six groups of banks are determined according to the degree of branching, namely: systemically important banks, all-Ukrainian equilibrium banks, all-Ukrainian concentrated banks, regional banks, local individual banks, closed banks. A particular emphasis is placed on a range of banking services and pricing policies of banks groups. The classification of factors developed by M. Yokoi-Arai and N. Yoshino is used in order to assess the competitiveness of Ukraine’s banks in terms of effectiveness and volume of services provided, information technology and resource management. About fifty indicators of banking activites performed by groups of banks with domestic and foreign capital are compared, and also best-performing banks in these groups are described based on the analysis of 82 operating banks in Ukraine. The article presents evidence that, under current conditions in Ukraine, banks with domestic and foreign capital are represented in all categories of banking services. It is pointed out that the highest competitiveness of Ukraine’s banks is observed in developing the network of ATM terminals, promoting Internet banking and, thus, a wide coverage of banking services. It is noted that Ukraine’s banks are less competitive in providing services for big businesses, international companies, funding projects, innovations and start-ups. The findings of the research paper can be useful for educational purposes as well as for professionals in the banking sector.

scholarly journals Optimizing the Borrowing Limit and Interest Rate in P2P System: From Borrowers’ Perspective

2018 ◽  
Vol 2018 ◽  
pp. 1-14
Author(s):  
Zhihong Li ◽  
Lanteng Wu ◽  
Hongting Tang
Keyword(s):  
Neural Network ◽  
Interest Rate ◽  
Bp Neural Network ◽  
Interval Estimation ◽  
Real World Data ◽  
Proposed Model ◽  
P2p Lending ◽  
New Perspective ◽  
P2p System ◽  
Benefits And Costs

P2P (peer-to-peer) lending is an emerging online service that allows individuals to borrow money from unrelated person without the intervention of traditional financial intermediaries. In these platforms, borrowing limit and interest rate are two of the most notable elements for borrowers, which directly influence their borrowing benefits and costs, respectively. To that end, this paper introduces a BP neural network interval estimation (BPIE) algorithm to predict the borrowers’ borrowing limit and interest rate based on their characteristics and simultaneously develops a new parameter optimization algorithm (GBPO) based on the genetic algorithm and our BP neural network predictive model to optimize them. Using real-world data from http://ppdai.com, the experimental results show that our proposed model achieves a good performance. This research provides a new perspective from borrowers in exploring the P2P lending. The case base and proposed knowledge are the two contributions for FinTech research.

Exploiting Nanotech Opportunities: A Strategic Entrepreneurship Perspective

2008 ◽  
Vol 1106 ◽  
Author(s):  
Daniela Baglieri ◽  
Sara Giordani
Keyword(s):  
New Ventures ◽  
Global Market ◽  
Venture Capitalists ◽  
Due Diligence ◽  
Strategic Entrepreneurship ◽  
Emerging Industries ◽  
Regulatory Frameworks ◽  
The Us ◽  
The Right ◽  
Start Ups

AbstractThis paper analyzes the main challenges nanotech start-ups face in turning nanotech inventions into valuable and marketable nanotech innovations, also considering that nanotechnology discoveries could represent “inventions of methods of inventing” (Rothaermel et al., 2007). In the last decades, nanotechnologies have been a burgeoning area of science and engineering which show an increasing potential to transform a broad range of industries, and to boost the US and European firms' competitiveness (OECD, 1998). Although these emerging technologies share some problems with new ventures in other emerging industries ( e.g. biotech), nanotechnology firms have to balance the management of high technical and high market risk, still evolving regulatory frameworks (Bowman et al. 2006) and strategies for entering the business network and for attracting investments, e.g. in the form of potential venture capitalists. Potential investors, in turn, will face the well-known hurdle of the due diligence, considering for example health or safety concerns, manufacturing, availability of distribution channels, etc. (Burden, 2007).We propose that configuring their network and choosing the right market segment are the key strategies nanotech ventures should adopt in pushing their early growth in the global market. We analyze a sample of 15 European nanotech firms which confirm our predictions. Due to the novelty of the topic covered in this study, this research is exploratory in nature.

scholarly journals Operational Risk Management under Basel II - The Case of An Binh Joint Stock Bank

2016 ◽  
Vol 19 (4) ◽  
pp. 108-126
Author(s):  
Trung Quoc Trinh ◽  
Thuy Thu Pham
Keyword(s):  
Risk Management ◽  
Financial Services ◽  
Commercial Banks ◽  
Banking System ◽  
Operational Risk ◽  
Business Environment ◽  
Basel Ii ◽  
Global Market ◽  
Local Market ◽  
Operational Risk Management

In order to enhance commercial banks’ safety in financial services, Basel Committee on Banking Supervision issued a framework on operational risk management under Basel II. In an ever riskier business environment, it is necessary for Vietnam’s commercial banks to increase their competencies in risk management, especially in operational risk management. This is to ensure a sustainable development for banks in the local market and in the global market as well. In recent years, Vietnam’s commercial banks have developed systems for operational risk management. Therefore, the performance assessment is of importance to improve and enlarge applications on operational risk management, from perceptions, corporate’s culture, procedures to other supportive measures on the field of risk management in Vietnam’s banking system.

scholarly journals Inconsistencies of small business fiscal stimulation in Ukraine

2019 ◽  
Vol 5 (3) ◽  
pp. 204-219
Author(s):  
N. B. Yaroshevych ◽  
◽  
S. V. Cherkasova ◽  
T. V. Kalaitan ◽  
◽  
...  
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Banking System ◽  
Debt Financing ◽  
Financial Assistance ◽  
Accounts Payable ◽  
Initial Hypothesis ◽  
National Bank ◽  
Start Ups ◽  
The Given

The article discusses the effects of fiscal instruments used to stimulate the development of small business in Ukraine and the hypothesis that the inconsistencies inherent in these instruments prevent them from achieving the desired outcomes. To test this hypothesis, the authors estimated the percentage of small businesses covered by the simplified tax scheme and analyzed such fiscal instruments as the simplified tax scheme, various types of debt financing and taxation of debt financing. The authors used the data on the amount and dynamics of repayable financial assistance to estimate the scale of the phenomenon of corporate split-ups. The latter might be caused by the interest of large and medium-sized companies in accessing small business tax preferences. To calculate the amount of repayable financial assistance the authors propose to adjust the indicator of other current liabilities for the following indicators: other current accounts payable; interest incomes of resident banks; interest incomes of non-resident banks from their lending transactions in Ukraine; commission incomes of resident banks; and the total amount of corporate bonds. The analysis relies on the data of the State Statistics Service of Ukraine on activity of companies and the data of the National Bank of Ukraine on the country’s banking system in 2012–2017. The results of the analysis have confirmed the initial hypothesis about the contradictory effects of fiscal instruments: 1) In the given period, from 22% to 38% of small businesses did not have access to the benefits of the simplified tax system due to the inadequacy of the criteria for defining the size of business. 2) The taxation norms discriminated against small businesses seeking to use specific instruments of debt financing: instead of stimulating the development of start-ups, these fiscal instruments encouraged large and medium-sized companies to split into smaller units. 3) What distinguishes Ukraine from other countries is the wide use of repayable financial assistance by small businesses to attract funds. Calculations have shown that the share of repayable financial assistance among other available instruments of debt financing in the given period exceeded 28%. Thus, the findings indicate that further improvements of small business taxation are necessary.

scholarly journals DILEMA SKIM MURÂBAHAH PADA PERBANKAN SYARIAH

2011 ◽  
Vol 35 (2) ◽  
Author(s):  
Syukri Iska
Keyword(s):  
Banking System ◽  
Specific Reference ◽  
Islamic Banking ◽  
Conventional System ◽  
The Real ◽  
Islamic Jurisprudence ◽  
Islamic Countries ◽  
Economic Transaction

<p>Abstrak: Kesemarakan pertumbuhan perbankan syariah terutama di negara- negara Muslim pada beberapa dekade terakhir tidak dapat dipungkiri. Namun di balik pertumbuhan tersebut bank syariah sering dikritik hanya sekadar ganti “baju” dengan klaim bahwa bank ini mengambil beberapa konsep dari dari bank konvensional kemudian menggantikannya dengan idiom-idiom yang ada pada fiqih muâmalah. Tulisan ini memaparkan penjelasan terhadap pertanyaan tentang keberadaan bank syariah dengan merujuk pada skimmurâbahah, bagaimana perasaan dan perbedaan antara kedua sistem Islam dan konvensional, serta implikasi sistem perbankan Islam dalam transaksi ekonomi yang menyeluruh. Penulis berargumen bahwa kendati skimmurâbahah bukan merupakan instrumen ideal untuk mencapai tujuan riil ekonomi Islam, skimmurâbahah ini ternyata mengandung banyak persoalan, terutama kalau dilihat dalam perspektif syariah secara puristik ataupun menurut paradigma tentang bank.</p><p><br />Abstract: The Dilemma of Murabahah Skim in Shari‘a Banks. The flourishing development of Shari‘a Banks especially in Islamic countries for the last few decades are undeniable. However, despite such tremendous development it has often been criticized for being only changing suit claiming that it has taken some conventional system concepts which are then modified in acoordance with idioms found in Islamic jurisprudence discourse. This paper then sheds some lights on some questions of the existence of Shari‘a Banks with specific reference to murâbahah skim, how the two system similar to or different from each other, as well as the implication of the Islamic banking system in the general economic transaction. The author argues that although the murâbahah skim is not an ideal instrument in achieving the real objective of Islamic economy, its domination as an important skim, however, seems to be in dilemmatic position between the pragmatic demands of the need of pure Shari‘a laws as a genuine reference and the role of banks should fulfil.</p><p><br />Kata Kunci: perbankan syariah,murâbahah, ekonomi Islam</p>

scholarly journals The promise and perils of alternative market-based finance: the case of P2P lending in the UK

2019 ◽  
Vol 21 (4) ◽  
pp. 395-409 ◽  
Author(s):  
Vincenzo Bavoso
Keyword(s):  
Business Model ◽  
Financial Intermediation ◽  
Real Economy ◽  
Financial Industry ◽  
The Real ◽  
Regulatory Approach ◽  
P2p Lending ◽  
Progressive Growth ◽  
The Uk ◽  
Start Ups

AbstractThe collapse of the global financial industry in 2008 and the subsequent decay of most Western economies into a period of prolonged economic stagnation have represented a springboard for the progressive growth of alternative channels of financial intermediation. The reluctance and inability of mainstream banks in the post-crisis years to provide credit facilities to the real economy, most critically to start-ups and small and medium-sized enterprises, propelled the latest wave of financial innovation, this time under the guise of FinTech. Much has been written on the rise of FinTech in recent years, but there is still insufficient clarity about the benefits that this phenomenon is bringing to the real economy and the potential risks that can arise from its growth. This paper maps the development of FinTech lending platforms in the UK and reconceptualises the rationale for their growth. In doing that, this study focuses on the structure and operation of the main UK platforms, recognising that while some are effectively banks that adopt a technology-based business model, many platforms operate under the P2P business model. The question then is to assess the policy and regulatory approach that is relevant to UK P2P platforms. Interestingly, the emergence of P2P securitisation raises a number of regulatory and policy questions, because longer intermediation chains typical of securitisation may well defy the social and economic purposes under which the idea of P2P developed. Furthermore, questions of systemic risk inevitably resurface in these types of transactions. Ensuing problems related to the best way to regulate these new channels of financial intermediation lead to critically evaluate the initiatives launched by the UK FCA, initially under the Innovation Hub, and more recently under the consultation for a new regulatory framework.

scholarly journals The Expansion of Peer-to-Peer Lending

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Olena Havrylchyk ◽  
Carlotta Mariotto ◽  
Talal Rahim ◽  
Marianne Verdier
Keyword(s):  
Global Financial Crisis ◽  
Peer To Peer ◽  
Initial Growth ◽  
Spatial Effects ◽  
Lower Growth ◽  
P2p Lending ◽  
Spatial Autoregressive ◽  
New Entrants ◽  
The Global Financial Crisis ◽  
High Bank

Abstract We use data from the two leading US platforms, Prosper and Lending Club, to explore the drivers of the growing consumer demand for peer-to-peer (P2P) credit. Despite the online nature of new entrants, we rely on the spatial autoregressive model because spatial effects play an important role. Our findings suggest that the initial growth of P2P lending was spurred by the global financial crisis, but its growth after 2011 occurred in counties that were underserved by bank branches. The growth of P2P lending is slower in counties with high bank concentration and this factor is the most robust, stable over time and economically important in our study. Counties with lower population density, lower share of educated and young people experience lower growth of P2P lending, consistent with the hypothesis that learning costs deter the entry of new entrants.

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