Evidence from Supervisory Measures for Bank Lending and Npls Control During COVID 19 Crisis

The highest impact of Covid-19 crisis on banks is related to their loan portfolios where many borrowers are facing sharp collapse in their income, and difficulty in repaying their obligations. Regulatory and supervisory authorities have issued statements or guidelines to banks on how to deal with the impact of the outbreak, including relation to easing loan terms and conditions for impacted borrowers. This paper aims to provide some policy views on the appropriate response to Covid-19. Supervisors and regulators should play an integral part contributing to public policy responses to the pandemic. Consistent with their mandate of ensuring safety and soundness, supervisors’ action requires a balancing act where banks are encouraged to restructure loans and use the flexibility embedded in the prudential framework by financing viable firms. This paper presents the state of arts and some considerations about the future banks’ conditions facing NPLs increase and their earnings reduction.

Serving the Underserved: Microcredit As a Pathway to Commercial Banks

A large-scale microcredit expansion program—together with a credit bureau accessible to all lenders—can enable unbanked borrowers to build a credit history, facilitating their transition to commercial banks. Loan-level data from Rwanda show the program improved access to credit and reduced poverty. A sizable share of first-time borrowers switched to commercial banks, which cream-skim less risky borrowers and grant them larger, cheaper, and longer-maturity loans. Switchers have lower default risk than non-switchers and are not riskier than other bank borrowers. Switchers also obtain better loan terms from banks compared with first-time bank borrowers without a credit history.

Corporate stress and bank nonperforming loans: Evidence from Pakistan

Using detailed administrative Pakistani credit registry data, we show that banks with low leverage ratios are both significantly slower and less likely to recognize a loan as nonperforming than other banks that lend to the same firm. Moreover, we find suggestive evidence that this lack of recognition impedes loan curing, with banks with low leverage ratios reporting significantly higher final default rates than other banks for the same borrower (even after controlling for differences in loan terms). Our empirical findings are consistent with the theoretical prediction that classifying a nonperforming loan is more expensive for banks with less capital.

Serving the Underserved: Microcredit as a Pathway to Commercial Banks

A large-scale microcredit expansion program—together with a credit bureau accessible to all lenders—can enable unbanked borrowers to build a credit history, facilitating their transition to commercial banks. Loan-level data from Rwanda show the program improved access to credit and reduced poverty. A sizable share of first-time borrowers switched to commercial banks, which cream-skim less risky borrowers and grant them larger, cheaper, and longer-maturity loans. Switchers have lower default risk than non-switchers and are not riskier than other bank borrowers. Switchers also obtain better loan terms from banks compared with first-time bank borrowers without a credit history.

CROSS-CULTURAL COMMUNICATION OF CONCEPTS IN MODIAIN

Translation involves communication across languages and cultures. When one translates, s/he is involved in cross-cultural communication that is necessary in the current world scenario of globalization. English has been a global lingua franca that lubricates communication in the multilingual and multicultural communities. In this context, some Nepali novels have been translated into English, including Modiain that is the corpus of the present study. This study aims to explore and examine strategies used in translating cultural concepts (CCs) from Nepali into English. To achieve the set objective, I have employed corpus-based research design that uses parallel corpora consisting of Nepali-English pair of the selected novel. I investigated CCs in the original version and examined their translation counterparts in light of the set strategies such as translation by a more general term, a more neutral term, cultural substitution, loan terms, paraphrase, omission and illustration. The findings reveal that the use of the strategies poses pitfalls in transferring senses of the CCs across languages and cultures in one way or the other. This implies that the translators should be aware of the bilingual and bicultural sensitivities and sensibilities while translating CCs. Further implication of the study is that the course developers of applied linguistics, especially translation studies, should pay due attention while designing the courses towards the cross-cultural communicability of the CCs.CROSS-CULTURAL COMMUNICATION OF CONCEPTS IN MODIAIN

Trends in Corporate Borrowing

Corporate borrowing has substantially changed over the last two decades. In this article, we investigate changes in borrowing of US publicly listed firms along trends in five key areas: ( a) the funding mix of firms and the importance of balance-sheet versus off-balance-sheet borrowing; ( b) the costs of corporate borrowing; ( c) trends in nonprice loan terms; ( d) the importance of banks versus nonbank institutional investors; and ( e) the purpose for corporate borrowing. We explore these trends graphically over the 2002–2019 period, provide a narrative for these trends based on the theoretical and empirical literature in the respective areas, and discuss some implications for the coronavirus disease 2019 (COVID-19) pandemic. Finally, we document these trends for firms in the Eurozone countries and delineate similarities and differences. Expected final online publication date for the Annual Review of Financial Economics, Volume 13 is March 2021. Please see http://www.annualreviews.org/page/journal/pubdates for revised estimates.

Wanprestasi dalam Pelaksanaan Perjanjian Pinjam Meminjam Pada Lembaga Keuangan Mikro Syariah Karawang

The implementation of lending and borrowing money at the Karawang Islamic Microfinance Institution (LKMS) is based on an agreement between the two parties with the aim of providing capital for business development. However, in the implementation of these loans, problems are still encountered in the form of broken promises or defaults made by the debtor customer. The purpose of this research is to find out how the implementation of the loan and loan agreement at the Islamic Microfinance Institution (LKMS) X in Karawang, what are the forms and factors that cause defaults to occur at the X Sharia Microfinance Institution (LKMS) in Karawang, and how the efforts to resolve default carried out by the X Financial Institution (LKMS) in Karawang. This study uses a normative juridical method. Based on the results of research on the implementation of the lending and borrowing agreement at the Sharia Microfinance Institution (LKMS) X in Karawang, it is bound by a written agreement, the form of default that occurs is in the form of not performing achievements, performing achievements but partly, implementing achievements but too late. Factors occur in default, uncertainty in decision making, lack of coordination, misuse of loan funds, and business not running smoothly. Efforts to solve it include intensive collection, issuance of warning letters, customer summons, extension of loan terms and collateral seizure.

The Dollar and Corporate Borrowing Costs

We show that U.S. dollar movements affect syndicated loan terms for U.S. borrowers, even for those without trade exposure. We identify the effect of dollar movements using spread and loan amount adjustments during the syndication process. Using this high-frequency, within loan variation, we find that a one standard deviation increase in the dollar index increases spreads by up to 15 basis points and reduces loan amounts and underpricing by up to 2 percent and 7 basis points, respectively. These effects are concentrated in dollar appreciations. Our results suggest that global factors reflected in the dollar affect U.S. borrowing costs.