Impact Investing Through Crowdlending: Examining the Role of Intermediation and the Potential for Development Banks

2020 ◽  
Vol 89 (3) ◽  
pp. 99-118
Author(s):  
Andrew Lee ◽  
Christiane Weiland
Keyword(s):  
Interest Rates ◽  
Business Models ◽  
Conflicts Of Interest ◽  
Small Scale ◽  
Impact Investing ◽  
Retail Investors ◽  
Low Interest Rates ◽  
Development Banks ◽  
Investment Crowdfunding

Summary: Development banks are facing changing market conditions with low interest rates, rapid technological change, and an increased interest in impact investment. This combination of factors challenges traditional processes and business models, but also provides a chance to develop new and sustained business opportunities. We examine examples of impact investment crowdfunding platforms in an international and domestic context. We evaluate their organisational structure, especially in connection with the potential integration of an intermediary and possible conflicts of interest. Our analysis provides both economic justification for activities of promotional and development banks in this area and new inputs for expanding their business model with a transparent and trustworthy financial lending instrument for small-scale retail investors.

scholarly journals Analisis Peran Negara Di Bidang Ekonomi Dalam Prespektif Sistem Kapitalisme, Sosialisme, Dan Ekonomi Islam

2016 ◽  
Vol 1 (1) ◽  
Author(s):  
Muhammad Kambali
Keyword(s):  
Interest Rates ◽  
Conceptual Framework ◽  
Economic System ◽  
Economic Crisis ◽  
The State ◽  
Planning System ◽  
Role Of The State ◽  
The World ◽  
Low Interest Rates

The economic crisis that convolved the world economy a few years ago is the result of a series of government policies in the economic field. Starting from the Subprime Mortgage in America, the crisis eventually spreads across all sectors of the economy. As analysts say that the explosion of the current economic crisis is caused by the trend of low interest rates that are applied by the Fed. The trend of low interest rates will give rise to expectation of market to future economic situation. It is characterized by the overflow of capital expansion in all sectors, especially in property sector. Today, along with the growing mobility of capital from one country to another as part of unavoidable economic liberalization, mobility of capital, on the one hand, has spawned some of the imbalances in the life of a State. The powerlessness can not be separated from economic ideology and system on state role in the economy. Capitalism with its laissez faire brings the concept of state minimal role in the economy. In the empirical facts, it is broken by the crisis situation in 1930 and today's financial crisis. Socialism tends to carry the central role of the State in the economy through the centralistic planning system. The fall of the Soviet Union in the 1980s brought the world to a choice whether reconstructing capitalism or socialism as Fukuyama and Gidden said. On the other hand, as the new system, the economic system of Islam brings the concept of the role of the State in the economy on the basis of universal values of Islam, such as justice in the economy which is reflected in the mechanism of the prohibition of riba (usury), just income distribution and redistribution of income through zakat and social security. This article is an exposure of the State's role in the economy which is studied through the perspective of today’s economic system. The systems are capitalism, socialism, and Islam. The article not only explores conceptual framework, but also also contains an empirical framework mapping and how the conceptual framework is operated. At the end, from the two mapping (conceptual and empirical), author draws a reflection of how the State should play a role in the economic field. Keywords: Capitalism, Socialism, Islam, Economic Role of State

scholarly journals The Role of E-Banking on the Switching Behaviour of Retail Clients of Commercial Banks in Polokwane, South Africa

2017 ◽  
Vol 9 (3(J)) ◽  
pp. 192-201
Author(s):  
Reginald Masocha ◽  
Tafadzwa Matiza
Keyword(s):  
South Africa ◽  
Interest Rates ◽  
Sampling Technique ◽  
Bank Account ◽  
Banking Services ◽  
Switching Behaviour ◽  
Low Interest Rates ◽  
Convenience Sampling ◽  
Physical Branch

This study focused on investigating the role of E-banking on the switching behaviour of retail bank clients in Polokwane, South Africa. Recently, studies have shown that people are switching banks more often than in the past. Circumstances that are beyond control cause people to switch. This has become a challenge in the banking industry as many banks lose their clients. However, newly developed technologies have brought many changes in the operation of banks. The new E-banking services have enabled bank clients to have access to their bank account for 24 hours without visiting the physical branch. A sample of 98 respondents was surveyed in Polokwane, South Africa using the convenience sampling technique. The cronbach alpha test was used to ascertain reliability of the findings. The findings reveal that demographic characteristics have much impact on the switching behaviour of commercial bank clients and acceptance of e-banking services. Switching factors such as bank charges, low interest rates on savings, promotion activities, location and switching costs were the major reasons for bank customers to switch banks.

Analisis Peran Negara Di Bidang Ekonomi Dalam Prespektif Sistem Kapitalisme, Sosialisme, Dan Ekonomi Islam

2016 ◽  
Vol 1 (1) ◽  
pp. 16-35
Author(s):  
Muhammad Kambali
Keyword(s):  
Interest Rates ◽  
Conceptual Framework ◽  
Economic System ◽  
Economic Crisis ◽  
The State ◽  
Planning System ◽  
Role Of The State ◽  
The World ◽  
Low Interest Rates

The economic crisis that convolved the world economy a few years ago is the result of a series of government policies in the economic field. Starting from the Subprime Mortgage in America, the crisis eventually spreads across all sectors of the economy. As analysts say that the explosion of the current economic crisis is caused by the trend of low interest rates that are applied by the Fed. The trend of low interest rates will give rise to expectation of market to future economic situation. It is characterized by the overflow of capital expansion in all sectors, especially in property sector. Today, along with the growing mobility of capital from one country to another as part of unavoidable economic liberalization, mobility of capital, on the one hand, has spawned some of the imbalances in the life of a State. The powerlessness can not be separated from economic ideology and system on state role in the economy. Capitalism with its laissez faire brings the concept of state minimal role in the economy. In the empirical facts, it is broken by the crisis situation in 1930 and today's financial crisis. Socialism tends to carry the central role of the State in the economy through the centralistic planning system. The fall of the Soviet Union in the 1980s brought the world to a choice whether reconstructing capitalism or socialism as Fukuyama and Gidden said. On the other hand, as the new system, the economic system of Islam brings the concept of the role of the State in the economy on the basis of universal values ​​of Islam, such as justice in the economy which is reflected in the mechanism of the prohibition of riba (usury), just income distribution and redistribution of income through zakat and social security. This article is an exposure of the State's role in the economy which is studied through the perspective of today’s economic system. The systems are capitalism, socialism, and Islam. The article not only explores conceptual framework, but also also contains an empirical framework mapping and how the conceptual framework is operated. At the end, from the two mapping (conceptual and empirical), author draws a reflection of how the State should play a role in the economic field.

STRUCTURAL PRODUCTS WITH CAPITAL PROTECTION AS AN ALTERNATIVE TO INVESTING IN CLASSICAL FINANCIAL INSTRUMENTS

2020 ◽  
Vol 4 (12) ◽  
pp. 68-72
Author(s):  
S. S. ROGOZIN ◽  
Keyword(s):  
Interest Rates ◽  
Market Development ◽  
Financial Instruments ◽  
High Demand ◽  
Structured Products ◽  
Retail Investors ◽  
Low Interest Rates ◽  
Work Mechanism ◽  
History Of ◽  
Investment Object

The article is devoted to the features of structured products as an alternative investment object. Under historically low interest rates, structured products are provoking high demand from retail investors. The author examines a history of structured products market development, focusing on the analysis of construction principles and work mechanism of structured products with capital protection. In addition, the author elaborates on some features of Russian structured products market and reviews risks, associated with investments in structured products.

scholarly journals Geld verändert die Welt

2018 ◽  
Vol 87 (3) ◽  
pp. 65-81
Author(s):  
Reinhold Rickes
Keyword(s):  
Monetary Policy ◽  
Financial Markets ◽  
Interest Rates ◽  
Financial Intermediation ◽  
Savings Banks ◽  
The World ◽  
Low Interest Rates

Zusammenfassung: In Zeiten von Digitalisierung, Niedrigzinsen und Kryptogeld stehen viele ökonomische Prozesse und insbesondere die Finanzintermediation auf dem Prüfstand. Im vorliegenden Beitrag wird dabei die Rolle der Geldpolitik kritisch mit Blick auf ihre „Ultraexpansivität“ reflektiert und Spekulationsgefahren sowie Risiken der Veränderungen des Geldsystems analysiert. Im Finanzsektor ist entscheidend, wie zukünftige Regulierungen ausgestaltet werden. Summary: Money is changing the world. In times of digitization, low interest rates and cryptocurrency, many economic processes and especially financial intermediation are under scrutiny. In this article, the role of monetary policy is critically reflected with regard to its „ultra-expansionism“ and the necessity of further exit steps is discussed. In addition, the financial markets are being changed by the development of cryptocurrency. As a result, the associated risk of speculation poses a threat. In this context, it is also necessary to warn against the path towards a full-money system. After all, banks and savings banks are facing up to these challenges and mastering them. Therefore, it remains crucial to design further regulations with moderation and balance.

scholarly journals Customers’ expectations from savings products

VUZF Review ◽  
2021 ◽  
Vol 6 (2) ◽  
pp. 4-10
Author(s):  
Stanislav Dimitrov
Keyword(s):  
Interest Rates ◽  
Active Role ◽  
Point Of View ◽  
Ageing Population ◽  
Low Interest Rates ◽  
Cost Efficient ◽  
Changing Attitudes ◽  
Further Development

Customers expect certain characteristics from long-term savings products. Providers are not able to supply all of these characteristics in one product at the same time. In addition, there are changing attitudes of the savers and the requirements to the financial institutions are evolving. The paper is analyzing the customers’ expectations from the long-term savings products. The manuscript is searching answer which are the most important characteristics of the savings products from the point of view of the client. The research is focused on three main areas: which are the customers’ expectations; what is the current environment in the market of savings products and what developments can we expect in the coming years. One of the conclusions is that the providers have to adapt their products to the customers’ expectations in order to succeed and to reach further development of the markets. Another conclusion is that customer centric products will gain greater trust among potential savers. We believe that the successful saving product has to be simple, transparent and cost-efficient. This reflects the surrounding environment of low interest rates, ageing population, increased informational flow, digitalization and alternative products development. To support the savers and the providers it is needed public help, targeting good coverage and constant efforts for active role of the stakeholders in the savings process.

scholarly journals What future for the European banking system?

2018 ◽  
Vol 87 (4) ◽  
pp. 141-151
Author(s):  
Lorenzo Bini Smaghi
Keyword(s):  
Interest Rates ◽  
Capital Market ◽  
Banking Sector ◽  
Banking System ◽  
The Us ◽  
Low Interest Rates ◽  
European Banking ◽  
European Banks ◽  
Main Factors

Zusammenfassung: Das Papier beleuchtet die Hauptgründe, die der sinkenden Rentabilität des europäischen Bankensektors im Vergleich zum US-amerikanischen zugrunde liegen. Sie unterstreicht insbesondere die Rolle niedriger Zinsen, geringerer Konzentration, strengerer Regulierung und des Fehlens eines tiefen und liquiden Kapitalmarktes. Ein stärkeres europäisches Bankensystem erfordert echte gesamteuropäische Banken und eine echte Kapitalmarktunion. Summary: The paper assesses the main factors underlying the decreasing profitability in the European banking sector, in comparison with the US. It underscores in particular the role of low interest rates, lower concentration,tighter regulation and the absence of a deep and liquid capital market. A stronger European banking system requires true pan-European banks and a true capital market union.

scholarly journals The Role of E-Banking on the Switching Behaviour of Retail Clients of Commercial Banks in Polokwane, South Africa

2017 ◽  
Vol 9 (3) ◽  
pp. 192
Author(s):  
Reginald Masocha ◽  
Tafadzwa Matiza
Keyword(s):  
South Africa ◽  
Interest Rates ◽  
Sampling Technique ◽  
Bank Account ◽  
Banking Services ◽  
Switching Behaviour ◽  
Low Interest Rates ◽  
Convenience Sampling ◽  
Physical Branch

This study focused on investigating the role of E-banking on the switching behaviour of retail bank clients in Polokwane, South Africa. Recently, studies have shown that people are switching banks more often than in the past. Circumstances that are beyond control cause people to switch. This has become a challenge in the banking industry as many banks lose their clients. However, newly developed technologies have brought many changes in the operation of banks. The new E-banking services have enabled bank clients to have access to their bank account for 24 hours without visiting the physical branch. A sample of 98 respondents was surveyed in Polokwane, South Africa using the convenience sampling technique. The cronbach alpha test was used to ascertain reliability of the findings. The findings reveal that demographic characteristics have much impact on the switching behaviour of commercial bank clients and acceptance of e-banking services. Switching factors such as bank charges, low interest rates on savings, promotion activities, location and switching costs were the major reasons for bank customers to switch banks.

scholarly journals Affordable Credit Resources to Implement Investment Projects in Industry of Russia

2020 ◽  
Vol 17 (4) ◽  
pp. 24-35
Author(s):  
V. A. Eremkin
Keyword(s):  
Interest Rates ◽  
Commercial Banks ◽  
Banking Sector ◽  
Credit System ◽  
Investment Projects ◽  
Industrial Enterprises ◽  
Low Interest Rates ◽  
The Russian Federation ◽  
The Impact

Raising loan finance by industrial enterprises for the development of their investment projects is an important factor for economic growth in Russia. Due to this the problem of credit resource affordability for Russian business becomes more and more topical. The article analyzes possibilities of credit affordability regulation for industrial enterprises by tools of monetary policy of the Central Bank of the Russian Federation. The author aims at indentifying the current problems of the credit system for industrial enterprises and finding the key lines in its improvement. Within the frames of the research the author estimates the impact of high and low interest rates on the volume of industry crediting, analyzes the structure of giving credits to non-financial organizations and studies the problem of long cash affordability for realizing investment projects in industry. The article also investigates the asset concentration in the banking sector and shows the higher role of state and the diminishing number of commercial banks and their branches. Certain important lines of development were identified, which in the future could determine the situation in industry crediting in Russia. Finding of the research can be used for devising the state strategy of developing the system of industry crediting in Russia.

The Impact of the Pandemic (COVID-19) on the Change of Business Models on the Example of the Banking Industry

2021 ◽  
pp. 208-224
Author(s):  
Przemyslaw Jacek Sawicki
Keyword(s):  
Interest Rates ◽  
Business Models ◽  
Banking Industry ◽  
Economic Life ◽  
Increased Risk ◽  
World Markets ◽  
The World ◽  
Low Interest Rates ◽  
The Impact

Due to the fundamental digitization of social/economic life, it takes on an “on” and “offline” scale image of the world. While analyzing the impact of the ongoing pandemic on the segmentation of world markets, the disruptions in the functioning of some industries, sectors, and entire economies are becoming deeper. The spread of COVID-19 has led to the dysfunction of a known ecosystem, and the destructive force of human isolation and the lockdown of economies have significantly influenced the behavior of societies and governments. Many customer-centric companies have reactively redefined their strategies, and the financial sector, especially banks, was to play an important role in absorbing the shock by providing the necessary credit to businesses and households. Meanwhile, the same institutions have experienced capital and liquidity destabilization due to increased risk reserves created and an operating in conditions of historically low interest rates. Unexpectedly, the pandemic has become another determinant of the new quality of processes, phenomena, and business models.

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