Research on Impcact of Interest Rate Marketization to SME Financing

2013 ◽  
Vol 709 ◽  
pp. 785-789
Author(s):  
Qun Fa Qin

Along with the reform of financial system pushing forward continuously in China, the government has been releasing regulation to interest rate, the process of interest rate marketization has been increasingly deepening. It is still a problem the small and medium-sized enterprises (SME) will face in the process of development that their financing is difficult. In the environment of interest rate marketization, the small and medium-sized enterprises should analyze that what impact will the interest rate marketization produce to themselves, improve their credit as well as business performance and strengthen financing management to realize a more rapid development.

2021 ◽  
Vol 9 (4) ◽  
pp. 176
Author(s):  
Yulin He

<p>Interest rate marketization means that the interest rate level of financial institutions operating and financing in the money market is determined by market supply and demand. It includes interest rate determination, interest rate transmission, interest rate structure and marketization of interest rate management. At present, there are still many deficiencies and defects in the traditional interest rate management system. The reform of interest rate marketization is the focus of China’s financial system reform. Therefore, we should not only be brave in innovation, but also carefully study and analyze. In the analysis process, this paper focuses on the impact of interest rate marketization on commercial banks, and puts forward some countermeasures.</p>


2018 ◽  
Author(s):  
Muhammad Subhan

The Government of Indonesia do external debt because government expenditure is greater than his revenue. External debt of Indonesia increas every year. To see its growth, it can be done with make a model of Indonesia’s external debt. This research is literature study. The model of the growth of Indonesia’s external debt in form of linear differential equations of first order that the solution can be determined. From the analysis results, Indonesia’s external debt affected by the interest rate, the expenditure rate, the tax revenue rate and non-tax revenue rate.


2021 ◽  
Vol 4 (2) ◽  
pp. 306
Author(s):  
Naoyuki Yoshino ◽  
Dina Azhgaliyeva ◽  
Ranjeeta Mishra

This paper proposes a floating-interest-rate infrastructure bond, where the interest of a government bond is paid to investors during the period of construction and the early period of operation. Unlike the usual government bond, which provides a fixed interest rate, the proposed floating-interest-rate infrastructure bond pays a floating interest, the rate of which depends on spillover tax revenues. Effective infrastructure projects have a positive effect on the economic growth of a region, known as the spillover effect. When user charges and the return from spillover tax revenues are below the fixed rate of the government bond, the interest rate will equal to the fixed rate of the government bond. In this case, investors in the infrastructure will receive interest on the government bond at the minimum rate. As the spillover effect of the infrastructure increases, the rate of return for infrastructure investment will become greater than the fixed rate of the government bond. The success of the floating-interest-rate infrastructure bond depends on the spillover effect and on transparency and accountability. Policy recommendations are provided in this paper on how to increase the spillover effect and improve transparency and accountability. 


Author(s):  
Najia Shakir ◽  
Sami Ullah ◽  
Salim Ullah Khan ◽  
Muhammad Qasim

The current study was conducted in the year 2014 in Pakistan to investigate the impact of fiscal deficit and government debt on the interest rate.  Data on selected macroeconomic variables like fiscal deficit, government debt, GDP per capita, money supply and volume of trade etc. from the year 1990 to 2012.  The study also has tried to find out that how the interest rate in the country is affected by the government debt and fiscal deficit. Augmented Dickey-Fuller test was run to address the stationary issue in the data, and then Ordinary Least Square (OLS) model test was run to check the relationship among the variables. Two models were set in the study. In the first model, the relationship of GDP per capita, money supply, total debt servicing and volume of trade showed a significant relationship with the fiscal deficit, while in the second model the relationship of inflation, fiscal deficit, money supply, government debt and public debt showed a significant relationship with the interest rate. Policy makers are advised to focus on the increase of DGP/Capita and export volume. In order to sustain the rate of inflation, the government may regulate the money supply and public borrowing.


2016 ◽  
Vol 2 (2) ◽  
pp. 86
Author(s):  
Lingyan Sun ◽  
Tianning Shi ◽  
Panlu Shi

The deposit insurance pricing is the core issue of deposit insurance system, it determines the success or failure of the deposit insurance system in a way. In the current deposit insurance pricing methods, we treat the interest rates as a constant. With the interest rate marketization in China, the deposit insurance pricing methods have also changed accordingly. In this paper, we will give a functional representation of the impact of RMB interest rate marketization on interest rate by fitting the coefficients of the cubic function. Then we will use the data of 2013 to prove it. For the points that do not conform to this rule, we also have some explanations related to the major economic events at that time.


2018 ◽  
Vol 15 (2) ◽  
pp. 99
Author(s):  
Iman Widhiyanto ◽  
Nunung Nuryartono ◽  
NFN Harianto ◽  
Hermanto Siregar

<p>Agricultural sector is the government’s priority through fiscal policies. One of the policies implemented is the interest rate subsidy for Food and Energy Security Credit Program (KKP-E). Some Banks had been appointed and in collaboration with the government to provide KKP-E. KKP-E program had lower interest rate than the market rate and it was expected that the farmers could access it. KKP-E was intended to meet the needs of agricultural equipment and farm inputs purchase. Since the program rolled out from 2008 to 2015, the implementation of KKP-E was below the credit limit. This study aimed to analyze the KKP-E implementation, farmers’ perspectives of KKP-E, and change from KKP-E to KUR (People’s Business Credit) for Agricultural Sector. Results of the study showed that KKP-E disbursement was relatively low. KKP-E distribution channels needed enhancement and the credit could not satisfy all farm business. Farmers did not receive KKP-E from the bank on time. Continuity of subsidized credit was important for farmers. Basic scheme of KKP-E program should be applied to KUR for Agricultural Sector. The government and the Banks need to be more actively in socializing the program, to improve financial education, to utilize more advanced technology, and to simplify bureaucracy.</p><p> </p><p>Abstrak</p><p>Pemerintah berusaha untuk membangun sektor pertanian melalui berbagai instrumen kebijakan fiskal. Salah satu kebijakan yang telah digulirkan adalah subsidi bunga Kredit Ketahanan Pangan dan Energi (KKP-E). Pemerintah bekerjasama dengan bank pelaksana menyediakan KKP-E. Petani diharapkan dapat mengakses KKP-E karena tingkat bunganya lebih rendah dari pasar. KKP-E digunakan untuk memenuhi kebutuhan pembelian peralatan pertanian dan input usaha taninya. Sejak digulirkan pada tahun 2008 sampai dengan 2015, realisasi penyaluran KKP-E masih jauh di bawah plafon kredit, dan realisasi subsidi bunga tidak efisien pada tahun-tahun awal digulirkannya subsidi bunga KKP-E. Penelitian ini bermaksud menganalisis secara diskriptif implementasi KKP-E, perspektif usaha tani terhadap KKP-E, dan perubahan KKP-E menjadi KUR (Kredit Usaha Rakyat) sektor pertanian. Data di lapangan menunjukkan bahwa jangkauan KKP-E masih rendah, saluran distribusi KKP-E perlu ditambah, terjadi fungibility penggunaan KKP-E, pinjaman KKP-E belum dapat memenuhi semua kebutuhan usaha tani, dan pencairan KKP-E masih lama dan tidak tepat waktu. Usaha tani menginginkan agar skim kredit dengan subsidi bunga dapat dilanjutkan di masa yang akan datang. Kemudahan-kemudahan yang ada pada KKP-E hendaknya diterapkan pada KUR sektor pertanian. Pemerintah bersama bank pelaksana perlu lebih masif melakukan sosialisasi dan edukasi keuangan dengan memanfaatkan teknologi yang lebih maju dan menyederhanakan birokrasi. </p>


2017 ◽  
Vol 2 (1) ◽  
pp. 1-14
Author(s):  
Amri Amri ◽  
Rahma Harianti

This study is aimed at empirically explores the effect of macroeconomic variables i.e., economic growth, interest rate and the Corruption Perception Index (CPI) on the Non-Performing Loans (NPL) of the commercial banks in Indonesia. An annually data from the years 2003 to 2014 were analysed using the multiple regression model. The study documented that: (i) the economic growth has insignificant effect on the Non-Performing Loans (NPL); (ii) the CPI has a negative significant influence on the Non-Performing Loans; and (iii) the interest rate has a positive significant influence on the Non -Performing Loans (NPL). This findings implied that the central bank of Indonesia (Bank Indonesia) and the government should design together the economic policies and regulations that could prevent increasing in the Non-Performing Loans (NPL) of the commercial banks in the country.Penelitian ini bertujuan untuk mengeksplorasi pengaruh variabel makroekonomi yaitu pertumbuhan ekonomi, tingkat suku bunga dan Indeks Persepsi Korupsi (CPI) terhadapkredit macet (NPL) bank- bank komersial di Indonesia. Data yang digunakan adalah tahunan dari tahun 2003-2014 yang dianalisis menggunakan model regresi berganda. Hasil studi ini menunjukkan bahwa: (i) pertumbuhan ekonomi tidak memiliki pengaruh signifikan pada Kredit Macet; (ii) CPI memiliki pengaruh signifikan negatif pada Kredit Macet; dan (iii) tingkat suku bunga memiliki pengaruh signifikan positif terhadap Kredit Macet. Temuan ini menyiratkan bahwa bank sentral (Bank Indonesia) dan pemerintah harus merancang bersama-sama kebijakan ekonomi dan peraturan yang bisa mencegah peningkatan kredit macet bank-bank komersial di Indonesia.


Media Ekonomi ◽  
2017 ◽  
Vol 19 (1) ◽  
pp. 53
Author(s):  
Muhammad Biwa Nugraha

<p>Economic development of a country, requires a well planned and directedprogram and also requires a sufficient capital or development found. Therefore,Banking will be required as the financial institution and as the center ofdevelopment. The government has implemented several improvement towards theperformance of Banking by establising several policies. One of those policies is,Banks is free to determine their own interest rate. Which that policy sah motivatesthe development of establishment of Syariah Banks which its basis is on the profitsharing and not on the interest rate.The rapid development of the Syariah Bankingwhether perceiency improvement of the Syariah Bank it self. In this research, the writer was attemted to observe the efficiency rate of theeconomic activities unit (UKE) of Syariah Bank. Data was used here is the Inputsecondary data and Output on the period of 2005-2009. Input could be classifiedinto the general expense and administration, personnel expense, operations expense.Mean while, the output is operational income, and income from lending. The result of this research showed that, the efficiency rate of 4 UKEs (BankSyariahMandiri, Bank Mega Syariah, Bank MuamalatSyariah, dan Bank BukopinSyariah) that was examined, During 2005-2009, there is only one Islamic bank canmaintain a constant level of maximum efficiency of 100% is Bank SyariahMandiri.<br />Keyword: Efficiency, DEA</p>


2020 ◽  
pp. 5-21
Author(s):  
S. R. Moiseev

In the economic literature authors believe that central banks manage long-term interest rates on loans through the short-term money market interest rate in order to maintain price stability and balanced economic growth. However, macroeconomic theory tells extremely sparingly about the interest rate channel of monetary policy. In general terms, it conducts changes through a term premium and expectations in the government securities market. In applied research, economists only observe the final reaction of lending rates to the non-financial sector. Economists traditionally believe that the interest rate channel requires a developed financial sector. In some cases, in particular, at zero rates or in a small open economy that depends on the exchange rate, the interest rate channel works poorly. However, its effectiveness can be maintained without developed financial markets. The answer is the pricing of banking loans.


2017 ◽  
Vol 7 (2) ◽  
pp. 85
Author(s):  
I Nyoman Widana ◽  
Ni Made Asih

Labor has a very important role for national development. One way to optimize their productivity is to guarantee a certainty to earn income after retirement. Therefore the government and the private sector must have a program that can ensure the sustainability of this financial support. One option is a pension plan. The purpose of this study is to calculate the  normal cost  with the interest rate assumed to follow the Vasicek model and analyze the normal contribution of the pension program participants. Vasicek model is used to match with  the actual conditions. The method used in this research is the Projected Unit Credit Method and the Entry Age Normal method. The data source of this research is lecturers of FMIPA Unud. In addition, secondary data is also used in the form of the interest  rate of Bank Indonesia for the period of January 2006-December 2015. The results of this study indicate that  the older the age of the participants, when starting the pension program, the greater the first year normal cost  and the smaller the benefit which he or she  will get. Then, normal cost with constant interest rate  greater than normal cost with Vasicek interest rate. This occurs because the Vasicek model predicts interest between 4.8879%, up to 6.8384%. While constant interest is only 4.25%.  In addition, using normal cost that proportional to salary, it is found that the older the age of the participants the greater the proportion of the salary for normal cost.


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