CREDIT MANAGEMENT STRATEGIES AND FINANCIAL PERFORMANCE OF INDUSTRIAL GOODS SECTOR IN NIGERIA

The influence of credit management methods on the liquidity and profitability of listed industrial goods firms in Nigeria was investigated in this study. It was decided to use a descriptive survey study design. The sample population for which copies of the questionnaire were distributed was 400 respondents, representing 65% of the population. The participants provided 355 valid responses, which were examined. For descriptive statistics, one-way ANOVA was utilized, and to test the hypotheses, a basic regression analysis method was applied. The results showed that the credit risk assessment, debt recovery strategy, and receivable collection policy sub-variables have a positive and statistically significant impact on the liquidity sub-variables - ability to pay, level of bad debt, and cash inflow. Liquidity had a positive and statistically significant effect on profitability. The study thus, suggest that companies in the industry should enhance their liquidity in order to achieve the targeted profit level by having effective credit terms and proper risk assessment strategy, designing and implementing debt recovery plans to aid collection of the overdue debt, adopting a stringent credit collection method, and employing and retained qualified accountants and credit administrators with excellent knowledge of credit control techniques.

Critical Perspectives to Non-performing Assets of Indian Banks, Shrinking Balance Sheet, Challenges and Way Ahead

Indian banking sector is facing the problem of rising bad loans as gross non-performing assets (GNPA) of Indian banks is on continuous rise. The present study is an attempt to analyse rising bad loans scenario of Indian banks, various factors that contributes to non-performing assets (NPA), along with the present state of Indian banks. This study found that poor recovery measures, lack of proper credit and risk management system at bank level, wilful default by borrowers, lack of stringent regulation, poor level of corporate governance and misuse of funds by borrowers are the key factors behind the rising level of bad loans of Indian banks. It was found that public sector banks (PSB) are suffering the most from rising level of NPA, high rate of NPA of banks have adverse impact on banks’ balance sheets, their assets quality, increased provisioning coverage ratio of banks and low return on assets. Although various concerned stakeholders have taken numerous measures to curb the situation, such as recapitalization of PSB, construction of assets reconstruction companies (ARC), Debt Recovery Tribunals for speedy recovery of bad loans and enactment of insolvency and bankruptcy code (IBC),still there is much more to do, and have a huge scope to bring reforms in banking sector, especially in PSB of India.

Parliamentary Authority over Creditors’ Claims

This chapter describes the history and impact of Parliament's Debt Recovery Act of 1732, which created a legal regime strengthening creditors' remedies against land and slaves throughout the British colonies in America and the West Indies. Parliament enacted the Debt Recovery Act in response to concerns among English creditors that the colonists were defeating their efforts to collect on debts by invoking traditional English legal protections to land. The merchants were interested in the laws of Virginia and Jamaica, where planters relied on credit to purchase an increasing supply of slave labor. With some exceptions, colonies relying heavily on slave labor to produce staple crops were more likely than other colonies to uphold the English protections to land and inheritance from unsecured creditors. A second concern driving Parliament's enactment of the Debt Recovery Act was that colonial legislatures might at any time enact laws characterizing slaves as “land” and thereby make the slaves legally immune from seizure by creditors under English law.

Property and Credit in the Early Republic

This chapter focuses on the federal structure of debtor/creditor law in the founding era. In gaining independence from British rule, the colonists rejected the extractive taxes and trade policies that they felt would suppress economic growth. But independence posed the question of what role the new federal government would play in regulating state legislatures and how much power it would have to standardize state laws on property rights, the credit markets, and the economy. In America after the Revolution, the vast differences in local preferences on the issue of creditors' remedies expressed themselves not through occupational categorization, but instead through interstate variation and hostility toward federal government policies that might have imposed a uniform regime reminiscent of the Debt Recovery Act. Federalism emerged, in part, in response to the hostility toward Britain's colonial policies. The legacies of these policies — and of the reactions to them — still affect American economic, social, and political developments today.

Property Exemptions and the Abolition of the Fee Tail in the Founding Era

This chapter explores founding era property law and institutions. It discusses the aftermath of Parliament's Debt Recovery Act in state law both relating to creditors' claims and in the law of slavery. Although English abolitionists mounted an attack against the commodification of slaves in the Debt Recovery Act, American Southern states moved closer to full chattel slavery, retaining slaves' liquid features with respect to creditors' claims to promote Southern labor and credit markets. The chapter then assesses the diversity of views in the founding era on the question of protections to land from creditors. It also analyzes the abolition of the fee tail estate in land in many states, and the move toward greater transparency of institutions such as title recording.

Governments and Business

This chapter evaluates the deleterious effect of the Covid-19 pandemic on business enterprises in Asia. In these extraordinary and unprecedented circumstances, it was not surprising that governments stepped in to forestall a collapse of markets brought about by the simple fact that ordinary life had been disrupted. Beyond liquidity and stimulus measures taken by central banks that feature in many past recessions, many Asian jurisdictions saw unprecedented provision of financial support and measures to businesses and individuals to tide them over and lessen the risk of insolvency. These measures included temporary moratoriums on financial obligations and debt recovery, relief from other contractual obligations, employment support, increases to the debt thresholds for the commencement of insolvency proceedings, and infrastructure investments. These extraordinary measures, if effective, had the potential to become part of an expanded standard playbook to deal with future economic shocks, and the chapter focuses on them with particular reference to China, Hong Kong, Malaysia, and Singapore.

Deutsche Bank AG v. Democratic Socialist Republic of Sri Lanka

446Jurisdiction — Investment — Derivative transactions — Interpretation — Claims to money used to create an economic value — Claims to money associated with an investment — Whether a hedging agreement constituted an investment under the BITJurisdiction — Investment — Territorial requirement — Derivative transactions — Whether a hedging agreement satisfied the condition of territorial nexus to the host StateJurisdiction — Investment — ICSID Convention, Article 25 — Interpretation — Derivative transactions — Salini test — Contribution to economic development — Regularity of profit and return — Whether a hedging agreement constituted an investment — Whether all five elements of the Salini test were legal criteria for an investment under ICSID jurisdictionJurisdiction — Investment — ICSID Convention, Article 25 — Interpretation — Derivative transactions — Ordinary commercial transaction — Contingent liability — Whether a hedging agreement was an ordinary commercial transaction or a contingent liabilityJurisdiction — Contract — State-owned entity — Municipal law — Whether a hedging agreement was void because the transaction was outside a State-owned entity’s statutory authorityState responsibility — Attribution — Judicial acts — ILC Articles on State Responsibility, Article 4 — Whether a superior court was an organ of the host StateState responsibility — Attribution — Central bank — ILC Articles on State Responsibility, Article 4 — Whether a central bank was an organ of the host StateState responsibility — Attribution — State-owned entity — ILC Articles on State Responsibility, Article 4 — ILC Articles on State Responsibility, Article 5 — ILC Articles on State Responsibility, Article 8 — Whether a State-owned entity was an organ of the State — Whether actions of a State-owned entity were attributable to the State as an exercise of governmental authority — Whether a State-owned entity was acting under instructions or the direction and control of the StateFair and equitable treatment — Judicial acts — Due process — Interim order — Political motive — Whether court orders violated the standard of fair and equitable treatment — Whether public statements of a senior judge evidenced the political motive of court ordersFair and equitable treatment — Autonomous standard — Interpretation — Minimum standard of treatment — Whether the standard of fair and equitable treatment was materially different from customary international law447Fair and equitable treatment — Government investigation — Due process — Bad faith — Transparency — Whether a central bank’s investigation violated the standard of fair and equitable treatmentExpropriation — Indirect expropriation — Contract — Derivative transaction — Substantial deprivation — Debt recovery — Municipal law — Whether the subsistence of a contractual debt and the possibility to claim under the chosen law of a third State prevented a finding of expropriation — Whether the possibility of recovery in a third State was to be assessed as a prerequisite in the cause of action of expropriation or as a matter of causation and quantumExpropriation — Indirect expropriation — Contract — Substantial deprivation — Legitimate regulatory authority — Proportionality — Whether an interference with contractual rights was an exercise of the host State’s legitimate regulatory authority — Whether the regulatory measures were proportionateRemedies — Damages — Causation — Contract — Debt recovery — Whether the claimant suffered damages if it had the possibility to recover a contractual debt in the courts of a third StateCosts — Indemnity — Egregious breach — Bad faith — Whether the egregious nature of the host State’s breaches of its international obligations meant the claimant was entitled to full recovery of its costs, legal fees and expenses