scholarly journals Installment Financial Sharing (IFS): A Financial Subsystem of Rastin PLS Banking

2019 ◽  
Vol 3 (1) ◽  
pp. 28-42
Author(s):  
Bijan Bidabad
Keyword(s):  
Financial Services ◽  
Banking System ◽  
Investment Project ◽  
The Internet ◽  
Real Sector ◽  
Capital Management ◽  
The Real ◽  
Electronic Mechanism

Installment Financial Sharing (IFS) is a subsystem of Rastin Profit and Loss Sharing (PLS) Banking System, and the guidelines, instructions, organization, workflow and electronic mechanism of Rastin PLS Banking have been put forward for this subsystem as well. Profit in this financial sharing method is based upon the yield of the real sector, and bank as an intermediary of funds, receives a commission as like as an agent, and provides capital management and financial services to financer (depositor) and participates in investment project of the entrepreneur on behalf of the depositor. In installment Financial Sharing, the contribution of the depositor is paid back by installments and ownership of the project is finally transferred to entrepreneur.Financial innovations of "Mughasatah Certificate" and "Musharakah Mughasatah Certificate" and "Rental Mughasatah Certificate" are used in this subsystem. The financer (depositor) of sharing project receives a certificate, which is negotiable in Rastin Certificate Market via the internet.

Hidden “holes” in the capital of banks and the supply of credit to the real sector of economy

2018 ◽  
pp. 49-68 ◽  
Author(s):  
M. E. Mamonov
Keyword(s):  
Credit Risk ◽  
The Other ◽  
Real Sector ◽  
Capital Management ◽  
Loan Loss ◽  
Short Term ◽  
The Real ◽  
Ex Post ◽  
The One

Our analysis documents that the existence of hidden “holes” in the capital of not yet failed banks - while creating intertemporal pressure on the actual level of capital - leads to changing of maturity of loans supplied rather than to contracting of their volume. Long-term loans decrease, whereas short-term loans rise - and, what is most remarkably, by approximately the same amounts. Standardly, the higher the maturity of loans the higher the credit risk and, thus, the more loan loss reserves (LLP) banks are forced to create, increasing the pressure on capital. Banks that already hide “holes” in the capital, but have not yet faced with license withdrawal, must possess strong incentives to shorten the maturity of supplied loans. On the one hand, it raises the turnovers of LLP and facilitates the flexibility of capital management; on the other hand, it allows increasing the speed of shifting of attracted deposits to loans to related parties in domestic or foreign jurisdictions. This enlarges the potential size of ex post revealed “hole” in the capital and, therefore, allows us to assume that not every loan might be viewed as a good for the economy: excessive short-term and insufficient long-term loans can produce the source for future losses.

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.

Methodological Approach to Assessing the Investment Attractiveness of the Industry for the Banking Sector

2019 ◽  
Vol 26 (12) ◽  
pp. 52-60 ◽  
Author(s):  
A. V. Larionov
Keyword(s):  
Banking Sector ◽  
Public Investment ◽  
Methodological Approach ◽  
Banking System ◽  
The State ◽  
Bank Loans ◽  
Real Sector ◽  
Theoretical Concepts ◽  
Factors Affecting ◽  
The Real

This paper presents selected results of the study on improving information and methodological tools to increase the effectiveness of entrepreneur’s and state investment policy. Final result of this study - is developing guidelines for calculating the coefficient of investment attractiveness of the banking industry based on the physical theory of heat transfer. Classification of industries according to the degree of investment attractiveness allows to select the industries that will receive the least amount of resources from private investors. The least attractive sectors will be able to obtain public investment resources. For sectors with high investment attractiveness, public funds will only supplement the flow of free liquidity from the banking sector. The lack of liquidity in the real sector is compensated by attracting private funds, a significant share of which is in the banking sector. The real sector could also get the state investments. In this regard, it is important for the state and the banking sector to assess the industries from the position of the possibility of returning the funds, as well as obtaining additional income. The study presents guidelines for calculating the coefficient of investment attractiveness of the industry for the banking sector. The indicator takes into account both the distribution of bank loans in the economy by industry, and the expected profitability of lending, affecting the bank’s decision to issue a loan. Based on the analysis of theoretical concepts, it was demonstrated that the liquidity of the banking sector can be redistributed ≪freely≫ (due to market mechanisms) and ≪involuntarily≫ (through the implementation of state policy related to the direction of funds in certain sectors where there is a lack of resources). The study considers a methodological approach to the assessment of factors affecting the distribution of liquidity of the banking system in the real sector of the economy. The considered approach takes into account behavioral aspects of decision-making in the banking system.

scholarly journals Corporate debt of the real sector to the banking system in Ukraine: ways to overcome

2020 ◽  
Vol 2020 (2) ◽  
pp. 35-62
Author(s):  
Anatolii DROBIAZKO ◽  
◽  
Oleksandr LYUBICH ◽  
Keyword(s):  
Banking System ◽  
Corporate Debt ◽  
Real Sector ◽  
The Real

scholarly journals Financial Stability versus Credit to Industries: The Banking Reform in Ukraine

2021 ◽  
pp. 94-109
Author(s):  
M. Krivogouz
Keyword(s):  
Financial Stability ◽  
Banking System ◽  
System Reform ◽  
Real Sector ◽  
Banking Reform ◽  
The Real ◽  
Economy Growth

The article analyses the results of the Ukrainian banking system reform of 2014–2020. The conclusion is made, that, along with the positive changes, such as macro-financial stability and transparency of the banking system, its role in the real sector of the economy growth is insignificant.

scholarly journals Financing the investment demand of the real sector of economy with resources of the regional banking system

2017 ◽  
Vol 80 (3) ◽  
pp. 27-37
Author(s):  
O. G. Ivanchenko ◽  
◽  
E. O. Kolbina ◽  
A. Y. Titkova ◽  
◽  
...  
Keyword(s):  
Banking System ◽  
Real Sector ◽  
The Real ◽  
Investment Demand

scholarly journals Stimulating the Banking Sector Participation in the System of the Real Sector of Economy Support

2020 ◽  
Vol 17 (5) ◽  
pp. 5-15
Author(s):  
E. V. Altukhova ◽  
M. A. Markov
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
Real Sector ◽  
Real Economy ◽  
Economic Interests ◽  
The Real ◽  
Key Characteristics ◽  
Development Institutions ◽  
Micro Level ◽  
Business Entities

The development of the real sector is essential to ensure the growth of national economy in any country. The principle institution working with money in economy is banks. They maintain cash circulation of real sector companies and act as a source of investment, which is allocated in the form of banking credits. Taking into account the fact that the goal of stimulating the real economy growth is set not only for the banking system but for economy in general, the approach to its attaining should be complex and systematic. Because of that it is very important to develop a list of steps that could provide a differentiated approach in the system of supporting companies of the real sector. Such measures’ implementation includes the participation of development institutions and therefore, banks in the system of national projects realization. Upgrading legislative regulation in the sphere of interaction between banks and business entities is extremely important as well as the development of new finance tools providing the growth in finance potential in the real sector of economy. The article analyzes banks’ participation in crediting the real sector of economy in Russia, studies the key characteristics of crediting and puts forward steps both on the macro- and micro-level, which could coordinate economic interests of companies and banks and cut costs.

scholarly journals How Effective Is the Monetary Policy on the Real Sector in Nigeria?

2020 ◽  
Vol 11 (5) ◽  
pp. 388
Author(s):  
Ebenezer O. Oladimeji ◽  
Ebenezer Bowale ◽  
Henry Okodua
Keyword(s):  
Monetary Policy ◽  
Credit Risk ◽  
Banking System ◽  
Public Intellectual ◽  
Monetary Authority ◽  
Real Sector ◽  
The Real ◽  
Transmission Channels ◽  
Area Of Interest ◽  
The Government

In the past few years, the real sector became an area of interest in scholarly and public intellectual discuss, towards a sustainable performance of the Nigerian economy. Successive governments also realized the need to diversify the economy from high dependence on oil into deepening the real sector, through monetary policy that allows more credit flow to the real sector. In a quest to reconcile the current state of the Nigerian real sector with the renewed efforts of the government and the monetary authority to revamp the sector, this study investigated the effectiveness of this process and reexamined the transmission channels, using a structural vector autoregressive econometric approach (SVAR). The results showed that the credit channel and asset price channel are the dominant monetary policy transmission channels to the real sector. However, there was a significant effect on the effectiveness of the transmission process, when credit risk was added to the model, as it revealed vital information about the behaviour of the banking system in response to monetary policy actions of the monetary authority, during the period of high credit risk/default risk. This study, therefore, recommends that monetary authorities should always consider the credit preference of the banking system and the order of transmission channels, before embarking on any monetary policy aimed at stimulating the real sector and other sectors of the economy.

scholarly journals MAIN DIRECTLY INTERACTIONS IN THE REAL SECTOR OF THE ECONOMIC AND BANKING SYSTEMS

2021 ◽  
Author(s):  
Olga Sarancha
Keyword(s):  
Strategic Management ◽  
Development Strategy ◽  
Banking System ◽  
Real Sector ◽  
Social Infrastructure ◽  
The Real ◽  
Mutual Relations ◽  
Definition Of

The relevance of the article is due to the need to ensure economic growth through the search for new approaches in regulating the interaction of financial and real sectors of the economy. The need to develop such approaches is due to the need for significant investment to ensure the creation of new, expansion and modernization of existing industries and the development of both industrial and social infrastructure. Relevance has determined the purpose of the article, which is to further develop approaches to strategic management of the interaction of the real sector of the economy and the banking system, to determine the main directions of interaction between the banking system and the real sector. The system of relations between enterprises and banks is considered. Namely: between the bank as an intermediary and the enterprise; between the enterprise and the bank within various integrated business groups; between the enterprise and the bank as a producer of financial products and services; between the enterprise and the bank as an agent; between the enterprise and the bank as a growth multiplier; between the enterprise and the bank as a financial corporation that provides optimization between consumption and accumulation. Determining the features of such relations allowed to form approaches to the development of strategy for managing the system of relations between enterprises and banks, due to the general patterns of development. Positive feedback is shown as a condition for the development of the real sector of the economy and the banking system. The general statement of a strategic task of management of system of such mutual relations on the basis of definition of the purpose in the form of some functional E (the purpose) and quality of management is formulated. It is noted that a pre-formulated development strategy and planned indicators should be chosen as a planned benchmark for development. The scientific novelty is due to the systematization and generalization of the features of the system of relations between enterprises and banks at the present stage in order to develop a strategy for managing the system of relations between enterprises and banks. Conclusions are made on the complexity of the financial and economic system, the multi-purpose nature of its functioning and the need to use strategic management to ensure the long-term development of such systems and the economy as a whole.

scholarly journals «Fight against Inflation» and Problem of Investment Process in Our Country

2018 ◽  
Vol 9 (2) ◽  
Author(s):  
Galina Makarova
Keyword(s):  
Central Bank ◽  
Commercial Banks ◽  
Banking System ◽  
Real Sector ◽  
Russian Government ◽  
The Real ◽  
Russian Economy ◽  
Downward Pressure ◽  
Investment Process ◽  
Stimulation Of

The article examines the fact of chronical investment crisis in the real sector of the Russian economy and considers the main directions of anti-inflation policy of the Central Bank of Russia (CB) which exert downward pressure on the investment process in the country (understated amounts of the money supply that do not provide the real needs of the commodity circulation; almost non-regulated spillover from real sector into the financial gambling; non-working function of the banking system in transformation of savings into investments; ambiguity of the CB status and an increased level of ambiguity for Russian investors; mass closing of domestic commercial banks and stimulation of the inflow of foreign ones; lengthy ignorance of of possibilities of using emission means of financing investment processes in the country). The article gives acritical estimation of the success gained by CB in fight against inflation during the crisis period of 2013-2017. It examines two possible scenarios of CB activity reorganization depending on possible evaluations of this activity by the Russian government.

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