scholarly journals The development of bank lending to corporate clients in Ukraine in times of economic cycles

2017 ◽  
pp. 72-87 ◽  
Author(s):  
Yaroslav Chaikovskyi
Keyword(s):  
Interest Rates ◽  
Economic Activity ◽  
Bank Lending ◽  
Bank Loans ◽  
Bank Loan ◽  
Economic Activities ◽  
Economic Cycles ◽  
Loan Portfolios ◽  
Major Factors ◽  
Corporate Clients

The article considers bank lending to corporate clients in Ukraine overcoming the issues related to economic cycles. The dynamics of gross domestic product, total assets, and credit portfolios of Ukraine’s banks over the period between 2012 and 2016 is analyzed. The changes in the composition of bank loans to non-financial corporations are analyzed in terms of scheduled payments, forms of currencies, target allocation and economic activities. Additionally, the dynamics and composition of residents’ deposits mobilized by deposit-taking corporations are considered in terms of scheduled payments over the above period. The major factors that hinder the recovery of bank lending to corporate clients are identified. It is highlighted that the main obstacles to the development of banking lending to corporate clients in Ukraine in times of economic cycles are as follows: high interest rates; a significant percentage of unprofitable enterprises and loan arrears in bank loan portfolios; an increase of non-performing loans (NPL); the fact that banks, having sufficient liquidity for lending to economy-boosting projects, prefer to purchase government securities; corrupt practices of granting loans to affiliated companies (insider loans). The percentage of unprofitable enterprises in Ukraine in 2016 is determined and analyzed by type of economic activity. Based on the analysis performed, some assumptions are made about the trends of the development of bank lending to corporate clients in Ukraine and proposals on further harmonization of bank lending to corporate clients in times of economic cycles are set out.

scholarly journals The Impact Of Basel III On Italian Banks Loan Rates: An Accounting-Based Approach

2012 ◽  
Vol 11 (11) ◽  
pp. 1269
Author(s):  
Pasquale Di Biase
Keyword(s):  
Interest Rates ◽  
Banking System ◽  
Bank Lending ◽  
Capital Requirements ◽  
Bank Loans ◽  
Bank Loan ◽  
Basel Iii ◽  
Baseline Scenario ◽  
Percentage Point Increase ◽  
The Impact

This paper empirically investigates the impact of the new capital requirements imposed under Basel III on bank lending rates.A general accounting equilibrium model is developed in order to map the change in the average interest rate on bank loans which is required to preserve the economic performance and the market value of financial institutions under the new regulatory framework.The study refers to the Italian banking system. According to our estimates, the long-term impact of heightened capital requirements on bank loan rates is likely to be modest.In our baseline scenario, we find evidence that each percentage point increase in the capital ratio can be recovered by increasing interest rates with which borrowers are charged by only 5.75 basis points. We conclude that the Italian banking system should be able to adjust to the higher capital requirements imposed by Basel III through a set of operative and commercial levers with no significant effects on the cost of credit for companies and consumers.

scholarly journals Bank crediting to the sector of non-financial corporations in Ukraine

2019 ◽  
Vol 14 (3) ◽  
pp. 64-75 ◽  
Author(s):  
Yuliia Verheliuk ◽  
Yuliia Koverninska ◽  
Vladimir Korneev ◽  
Alexey Kononets
Keyword(s):  
Interest Rates ◽  
Systematic Approach ◽  
Economic Value ◽  
Value Added ◽  
Bank Lending ◽  
Bank Loans ◽  
Economic Value Added ◽  
Economic Returns ◽  
Economic Activities ◽  
Macroeconomic Indicators

The importance of studying the bank crediting (lending) to non-financial corporations in Ukraine is due to the recent increase in borrowing costs and a low credit supply from banks. This article defines certain parameters, which could help to allocate the limited credit recourses to meet current macroeconomic challenges. The main purpose of the article is to discuss and substantiate the choice of these parameters. The study is focused on the systematic approach and statistical methods to achieve the research goals.Quantitative parameters of bank lending to non-financial corporations were analyzed through the prism of macroeconomic indicators. In particular, the analysis was conducted on the following parameters of bank lending to non-financial corporations: share of bank loans to non-financial corporations in GDP, volume of loans by type of economic activity, sectoral shares of non-financial corporations in creating gross economic value added, interest rates on loans to non-financial corporations, etc.It is defined that the share of bank lending to non-financial corporations in GDP is currently low and gradually decreasing. The analysis of the volume of lending by types of economic activities, by the size of borrowers and the respective sectoral shares of non-financial corporations in creation of gross value added showed disproportionate distribution of credit resources by economic returns. The calculation and analysis of the localization and concentration coefficients allowed to identify current problems in crediting of Ukrainian businesses. The interest rates on loans to non-financial corporations remain high, which often makes bank credits inaccessible for them, especially considering the low level of profitability of Ukrainian enterprises.

scholarly journals The Bank Lending Channel of Monetary Policy? The Panel Evidence from Egypt

2014 ◽  
Vol 16 (3) ◽  
pp. 255 ◽  
Author(s):  
Mohamed Aseel Shokr ◽  
Zulkefly Abdul Karim ◽  
Mansor Jusoh ◽  
Mohd. Azlan Shah Shah Zaidi
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Empirical Studies ◽  
Bank Lending ◽  
Bank Loans ◽  
Bank Loan ◽  
Bank Lending Channel ◽  
Lending Channel ◽  
Level Data ◽  
Effect Of Monetary Policy

This paper examines the relevance of the bank lending channel of monetary policy in Egypt using bank-level data. Previous empirical studies in Egypt that used macro-level data have not supported the relevance of the bank lending channel. However, using a sample of 32 commercial banks for the period from 1998 until 2011 and a dynamic panel GMM technique, the empirical findings revealed the relevance of the bank lending channel of monetary policy in Egypt. Moreover, there is a heterogeneity effect of monetary policy on bank loans according to bank size, in which the small banks are more affected during a monetary contraction than larger banks. This finding signals that the monetary authorities in Egypt should take cognizance of the stability of interest rates in order to stabilize the bank loan supply.       

scholarly journals BANK LENDING IN UKRAINE AND SIMULATION OF CREDIT ACTIVITY BY METHODS OF SYSTEM DYNAMICS

2021 ◽  
Vol 2021 (2) ◽  
pp. 101-127
Author(s):  
Svitlana Hlushchenko ◽  
◽  
Sergiy Ivakhnenkov ◽  
Sofiia Demkiv ◽  
◽  
...  
Keyword(s):  
System Dynamics ◽  
Interest Rates ◽  
Commercial Banks ◽  
Banking Sector ◽  
Bank Lending ◽  
Bank Loans ◽  
Bank Loan ◽  
Short Term ◽  
Loan Portfolio ◽  
Stage Of Development

The article identifies trends in bank lending to companies and households in Ukraine and considers modeling and integrated mapping of demand and supply of bank loans using the methods of system dynamics. The article shows that by 2020 the main trends in the Ukrainian banking sector are: a) increased dynamics of return on capital (29.7%) and reduced dynamics of interest rates on deposits (6.6%) and loans (14.8%); b) growth of the dynamics of bank loans in general, including the following characteristics: the largest share of the bank loan portfolio is accounted for by loans to economic entities, while loans to households account for 21.9%; loans to households are growing faster compared to the growth rate of loans to businesses; in the sectoral context, the largest share in lending is accounted for by the trade sector; short-term consumer loans predominate in household lending (82%); half of the loan portfolio of commercial banks consists of short-term loans; the share of non-performing loans in the total volume of issued loans remains high (48.75%); c) the deposit portfolio is dominated by household deposits, but in the dynamics there is a tendency to decrease in their share. Based on the methods of system dynamics, the authors present a model that allows to trace the relationship between commercial banks and legal entities and individuals, as well as to forecast the amounts of bank loans in accordance with the demand for loans from businesses and households (weighted by the maximum value credit load) and supply of credit resources by commercial banks. From a practical point of view, characterization of trends in banking, modeling the interaction of major participants in bank lending and determining the volume of bank loans using methods of system dynamics will help identify the main factors influencing the supply and demand of bank credit resources at the current stage of development of Ukraine and predict future dynamics of lending.

Ethnicity and bank lending before and during COVID-19

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marc Cowling ◽  
Weixi Liu ◽  
Elaine Conway
Keyword(s):  
Bank Lending ◽  
Ethnic Discrimination ◽  
Bank Loans ◽  
Bank Loan ◽  
Success Rates ◽  
Content Type ◽  
Ethnic Business ◽  
Lending Discrimination ◽  
The Uk ◽  
Ethnic Businesses

PurposeUsing ethnicity as our point of focus, the authors consider the dynamics of the demand for bank loans, and the willingness of banks to supply them, as the UK economy entered the COVID-19 pandemic in early 2020 with a particular focus on potential behavioural differences on the demand-side and discrimination on the supply-side. In doing so we directly address crisis induced financial concerns and how they played out in the context of ethnicity.Design/methodology/approachUsing the most recent ten quarterly waves of the UK SME Finance Monitor survey the authors consider whether ethnicity of the business owner impacts on the decision to apply for bank loans in the first instance. The authors then question whether ethnicity influences the banks decision to meet or reject the request for a bank loan.FindingsThe authors’ pre-COVID-19 results show that there were no ethnic differences in loan application and success rates. During COVID-19, both white and ethnic business loan application rates rose significantly, but the scale of this increase was greater for ethnic businesses. The presence of government 100% guaranteed lending also increased general loan success rates, but again the scale of this improvement was greater for ethnic businesses.Research limitations/implicationsThe authors show very clearly that differences in the willingness of banks to supply loans to SMEs relate very explicitly to firm specific characteristics and ethnicity either plays no additional role or actually leads to improved loan outcomes. The data is for the UK and for a very unique COVID time which may mean that wider generalisability is unwise.Practical implicationsEthnic business owners should not worry about lending discrimination or be discouraged from applying for loans.Social implicationsThe authors identify at worst no lending discrimination and at best positive ethnic discrimination.Originality/valueThis is one of the largest COVID-19 period studies into the financing of ethnic businesses.

Pro-cyclicality of the Basel Capital Requirement Ratio and Its Impact on Banks

2011 ◽  
Vol 10 (2) ◽  
pp. 22-36 ◽  
Author(s):  
Naoyuki Yoshino ◽  
Tomohiro Hirano
Keyword(s):  
Interest Rates ◽  
Stock Prices ◽  
Bank Lending ◽  
Bank Loans ◽  
Capital Requirement ◽  
Land Prices ◽  
Minimum Capital ◽  
Cross Border ◽  
Minimum Capital Requirement ◽  
Boom Period

This paper proposes replacing the present Basel capital requirement with a new counter-cyclical measure. Optimally, (i) the Basel capital requirement ratio should depend on various economic factors such as the cyclical stage of GDP, credit growth, stock prices, interest rates, and land prices—hence, avoiding the expansion of bank loans during a boom period and a credit crunch during a sluggish period; (ii) the Basel minimum capital requirement rule should be different from country to country since the economic structures and the behavior of banks are different; and (iii) cross-border bank operation should follow the minimum capital requirement ratio where bank lending activities occur rather than the origin of the source of funds.

scholarly journals The Effects of Bank-Level and Macroeconomic Variables on Commercial Bank Lending Based on Type of Use

2021 ◽  
Vol 24 (1) ◽  
pp. 105
Author(s):  
Arintoko Arintoko
Keyword(s):  
Interest Rates ◽  
Bank Lending ◽  
Bank Loans ◽  
Capital Adequacy ◽  
Working Capital ◽  
Macroeconomic Variables ◽  
Distributed Lag ◽  
Real Gdp ◽  
Long Run ◽  
Lending Behavior

ABSTRACTThe purpose of this study was to analyze the effect of interest rates, bank-level and macroeconomic variables on bank lending based on the type of use. The analysis method uses an autoregressive distributed lag (ARDL) model with quarterly data for the period of 2011Q1 - 2020Q1. The results show that investment lending behavior can be explained well by all bank-level and macroeconomic variables for the long run. The bank-level variable also reflects the performance and soundness of the bank, namely the capital adequacy ratio and loan to deposit ratio. Meanwhile, macroeconomic variables include inflation and real GDP. Consumer lending behavior is better explained by macroeconomic variables than bank-level variables. Meanwhile, GDP is the only variable that has a significant effect on working capital loans, which means that the behavior of working capital loans is more influenced by the business cycle as indicated by changes in real GDP. GDP is the only variable that consistently has a significant positive effect on bank loans for the three types of loans. Banks need to continue to emphasize the principle of prudence in providing credit by taking into account the term and credit risk, as well as internal and external factors.

scholarly journals Financing of SME sector in Serbia via bank loans: Crisis and postcrisis trends

2020 ◽  
Vol 15 (2) ◽  
pp. 113-130
Author(s):  
Teodora Šutaković
Keyword(s):  
Financial Crisis ◽  
Interest Rates ◽  
Financial Sector ◽  
Bank Loans ◽  
Bank Loan

The SME sector in Serbia is extremely important for the economy of Serbia as it makes a large part of the non-financial sector, employs the most people in Serbia and participates largely in the GVA of Serbia. However, SME sector it is still insufficiently profitable and non-efficient. Bank loans are the dominant external way of financing SME sector in Serbia. The financial crisis, which has started in 2008, has affected the movement of interest rates, the availability of bank loans, bank loan security requests and the level of non-performing loans. First signs of the recovery of SME sector in Serbia have been seen in 2013.

scholarly journals The factors affecting accessibility to credit capital of small and medium enterprises in Vietnam

2019 ◽  
Vol 15 (6) ◽  
pp. 15-25
Author(s):  
Phung The Dong ◽  
Nguyen Thi Hong Nham
Keyword(s):  
Interest Rates ◽  
Small And Medium Enterprises ◽  
Probit Model ◽  
Bank Loans ◽  
Bank Loan ◽  
Factors Affecting ◽  
Business Loan ◽  
The Government ◽  
Medium Enterprises ◽  
The Impact

The difficulty in accessing loans is one of the major barriers to the development of small and medium enterprises (SMEs) in Vietnam. Low accessibility to capital forces SMEs to spend both official and unofficial costs in order to obtain loans, and/or to access the unofficial market at higher interest rates, thereby increasing cost of production of enterprises. Studies suggest that the determinants of bank loan processing through which small and medium enterprises can access official loans include: characteristics of enterprises; indicators, reflecting the performance of enterprises; characteristics of loans; characteristics of enterprises, enterprise owners; geographical position of enterprises; the creditworthiness of enterprises and the role of the network.Purpose of the study.The aim of this paper is the quantitative analysis of the factors, affecting accessibility to credit capital of small and medium enterprises in Vietnam.Materials and methods.This study was conducted on the basis of a survey in December 2017. The survey includes 301 enterprises in Hanoi city. Selected enterprises are also enterprises, surveyed in the annual enterprise survey by the General Statistics Office of Vietnam. This paper uses the Probit and Logit regression approach to estimate the impact of factors, affecting the disbursement probability of a loan of an enterprise. The number of SMEs accounts for 56.69% of the samples. The number of enterprises, applying for a bank loan accounts for 58.4% of the total samples, of which the percentage of disbursed loans for SMEs accounts for only 47.3%. For enterprises without a bank loan, eliminating the reasons for the lack of demand and unwish to be in debt, the main reasons not to access bank loans are high interest rates, complicated loan procedures and insufficient collateral.Results.The results obtained from the Logistic and Probit models show that the estimated coefficients are statistically significant, affecting the probability of taking a business loan, accepted by financial institutions. Although the coefficients, estimated from Logistics model are larger than those estimated from the Probit model, the estimated results show that the direction of impact of the variables in two estimation techniques gives quite similar results.Conclusion.Based on the results of this study, the Government of Vietnam should implement policies to support SMEs in the direction of improving their access to capital. The credit institutions should design products and services suitable to the characteristics of SMEs in Vietnam.

scholarly journals Utilidad de la Contabilidad para emprendedores no obligados a llevar contabilidad

2020 ◽  
Vol 4 (8) ◽  
pp. 65-85
Author(s):  
Pablo Domingo Vilela Mera ◽  
◽  
Elizabeth Jacqueline Govea Robinzón ◽  
Gabriela Elizabeth Vilela Govea ◽  
◽  
...  
Keyword(s):  
Interest Rates ◽  
Financial Reporting ◽  
Bank Loans ◽  
Economic Activities ◽  
Registration Method ◽  
Financial Reporting Standards ◽  
Goods And Services ◽  
Low Interest Rates ◽  
Accounting Control ◽  
Economy Globalization

The development of the economy, globalization, and technologies of information and communication influenced accounting science to upgrade their postulates with the International Financial Reporting Standards (IFRS). Those new rules were made to unify the registration method, summarize and inform the companies’ economic operations looking to improve its analysis and interpretation. Due to this, a lot of new businesses were created worldwide as independent jobs because of the few opportunities generated by the automation of the production of goods and services. Most of them were formed as people’s entrepreneurs by using their daily savings, family support, or bank loans with low-interest rates. As consequence of more economic activities, the tax weight also increased and, thereby, better accounting control to determine the amount payable of every operation was required. In Ecuador, the entrepreneurs not required to bookkeeping must have daily control of incomes and expenses to establish their taxes, which is the reason for doing this investigation, mainly because they don’t have the academic studies nor enough profit to afford accountant’s wage. The main purpose of this work was to train them to keep accounting by themselves in which they can control their activities through designing and applicating an easy-to-use generic columnar journal. Keywords: accounting, entrepreneur, business, results.

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