Empirical determination of sustainable withdrawal rates considering historical yields and inflation rates in Germany

On account of the current low interest rate phase, which is most likely to continue in the coming years, the average yields to be achieved in the bond, time deposit and savings product sectors are declining, so that risk-averse investors in particular have few opportunities to generate return-oriented retirement provisions.This scientific article analyzes the level of a possible safe withdrawal rate for diversified pension portfolios, considering historical returns and inflation rates. Consequently, this article provides immediate practical added value for a possible retirement provision.The evaluation is based on the consideration of historical returns of the stock and bond market in Germany. To determine a safe withdrawal rate, the development of portfolios with different compositions and inflation-adjusted withdrawal rates are simulated over periods of 15 to 35 years. In this simulation, the risky part of the portfolio is represented by German equities, the low risk part by German government bonds.To sum up, the empirical results show a maximum safe withdrawal rate of 4%. The underlying portfolio is composed of 50% equities and 50% government bonds. Particularly due to the outlined demographic change in Germany as well as the ongoing low-interest phase, the empirical study can provide significant theoretical and practical insights.

Faktor Yang Mempengaruhi Tingkat Suku Bunga Deposito Bank Umum Di Indonesia

BBanks are financial institutions involved in the state development process that provide services to the public and have functions, such as raising funds. Banks cannot carry out their tasks properly if there are no funds; one of the ways the banks attract the public to raise funds is the time deposit interest rate. This study aims to determine what factors can affect commercial banks' deposit rates in Indonesia from 2010 to 2019. This research method uses multiple regression analysis techniques using the Vector Error Correction Model (VECM) method using secondary data. The results of this study indicate that the BI rate significantly affects the deposit rate. Inflation significantly affects deposit rates. Meanwhile, economic growth does not affect substantially deposit rates. The estimation results of the VECM model show that there is a significant effect in the long run but not substantial in the short term.

IMPLEMENTASI FATWA DEWAN SYARIAH NASIONAL NOMOR. 03/DSN-MUI/IV/2000 TENTANG DEPOSITO (STUDI PADA BANK MUAMALAT INDONESIA CABANG PALU)

Sharia banks in conducting business activities must be based on sharia principles. Based on the mandate of Law Number. 21 of 2008 concerning Islamic Banking and BI Regulation Number. 6/24 / PBI / 2004 that the DSN has the duty and authority to stipulate fatwas regarding products and services in the business activities of Banks which carry out business activities based on Sharia principles. To ensure that the deposit products at Bank Muamalat comply with the standards set by the DSN, a research was conducted at Bank Muamalat Indonesia, the Palu branch. Deposit products at the Palu branch of Bank Muamalat Indonesia use the Mudharabah Mutlaqah contract, where BMIs are given freedom in managing customer funds. Then it is reviewed on the rules of the DSN-MUI Fatwa Number. 03 / DSN-MUI / IV / 2000 based on the 6-point provision that must be implemented to achieve sharia principles. In its implementation, the mudharabah time deposit product run by Bank Muamalat Indonesia, Palu branch has met these provisions. so theproduct of mudharabah time deposits or deposits in the Palu branch of Bank Muamalat Indonesia is in accordance with the fatwa.

Money creation and the revolution. Along the Path to Real Change

When you store your belongings in a private locker, does the owner of the locker pay you? On the contrary, you pay the owner, for he is providing you with a service called safe-keeping. In effect, the owner holds your belongings safe until you take them back. So, why is it that you accept money from a bank to hold your money for you? The obvious answer is that the bank is not holding your money; it is lending it out and rewarding you with a portion of what it collects in interest. If you are happy with this arrangement, you have likely sought out a bank in your neighborhood that provides you with the greatest return on your deposit. Unfor tunately, there are several things very wrong with this type of transaction. Most important is that you are engaging in a tran saction that is commercially unsound. You and your bank engage in a legally non-binding agreement when, on the one hand, your bank promises to return your deposit on demand, and on the other hand, loans a portion of it to others for a specified period of time. Contractually, these two acts are incompatible, as the same money cannot be both a de-mand deposit and a loan simultaneously. Either, you deposit your money, reserve the right to de-mand it back at any moment, and pay the bank for holding it on your behalf. This is called a demand deposit. Or, you surrender your right to your money for a specific period of time, permit your bank to lend it to others, and receive interest for your risk and sacrifice. This is called a time deposit. Commercially, treating your demand deposit as money that can be loaned to others is not an enforceable contract, for the law insists that there must be mutual assent when two parties enter into an agreement. You and the bank are simply at odds when you expect to retrieve your money at any moment on demand, and the bank lends a portion of it to others for a fixed period. Legally speaking, both parties to the transaction do not agree to the same contractual terms in the same sense.

Determinants of the Profits in Regional Development Banks in Indonesia

Regional Development Banks (BPDs) should develop their regional governments' economy by increasing their performance. This study attempts to determine the effect of GCG and other variables on the banks' performance indicated by the profit. This study used 10 determiners as the independent variables such as NPL, LASSET, LTA, ETA, FBIR, TDR, LDR, NIM, DGCG, and GCGI, while the dependent variable is ROA. The data were taken from the BPD's financial reports from 2014 to 2019. There were 26 BPDs as the sample based on the stipulated criteria. The results show that NPL is an essential factor for increasing the banks' performance. Next, the time deposit ratio to total deposit also has a positive effect but not significant. The LTA ratio is negative but not significant, while GCGI has a significant effect. Therefore, NPL, and GCG are the dominant factors in determining the banks’ performance. The modeling constant values are all significant, indicated by the risk level ranging from 36-40%. It can be concluded that NPL is an important variable in determining risk for banks, so is the GCG index that can also affect the banks' performance. Therefore, BPDs should pay attention to their NPL and GCG in order to increase their performance

Investigation of Parameters Influencing Tubular-Shaped Chitosan-Hydroxyapatite Layer Electrodeposition

Tubular-shaped layer electrodeposition from chitosan-hydroxyapatite colloidal solutions has found application in the field of regeneration or replacement of cylindrical tissues and organs, especially peripheral nerve tissue regeneration. Nevertheless, the quantitative and qualitative characterisation of this phenomenon has not been described. In this work, the colloidal systems are subjected to the action of an electric current initiated at different voltages. Parameters of the electrodeposition process (i.e., total charge exchanged, gas volume, and deposit thickness) are monitored over time. Deposit structures are investigated by scanning electron microscopy (SEM) and Fourier-transform infrared spectroscopy (FTIR). The value of voltage influences structural characteristics but not thickness of deposit for the process lasting at least 20 min. The calculated number of exchanged electrons for studied conditions suggests that the mechanism of deposit formation is governed not only by water electrolysis but also interactions between formed hydroxide ions and calcium ions coordinated by chitosan chains.

El spread bancario frente a la regulación de tasas. / The bank spread facing the interest rate regulation.

Este trabajo busca analizar los efectos de la disposición de tasas activas máximas y tasas pasivas mínimas por parte del Banco Central de la República Argentina sobre el spread entre el cociente de ingresos financieros sobre los préstamos y el cociente de los egresos sobre los depósitos de los bancos privados que operaron en Argentina en el periodo 20122015. Luego de enumerar algunos modelos teóricos post-keynesianos para explicar cómo definen las diferentes tasas nominales los bancos comerciales, se analiza desde los estados financieros, como se comporto efectivamente el spread bajo las distintas regulaciones de la autoridad monetaria central. Los resultados demuestran que mas allá de las tasas máximas y mínimas, el spread efectivo no disminuyó, sino todo lo contrario. ABSTRACT: This paper aims to analyze the effects that maximum lending rates and minimum time deposit rates provided by the Central Bank of Argentina had on the spread between the ratio of financial income on loans, and the ratio of financial expenditures on the private banks deposits, operating in Argentina between 2012 and 2015. After reviewing some post-keynesians theories to explain how the commercial banks define the different nominal rates, this article analyzes, based on the financial statements, the actual spread behavior under the regulations of the central monetary authority. The results show that beyond the maximum and minimum rates, the effective spread does not decrease, but quite the opposite.

The relationships between time deposit rates, real rates, inflation and risk premium

Purpose The purpose of this paper is to investigate the influence of the real interest rates, inflation and risk premium on the time deposit rates of banks in the dual banking system in Malaysia. Design/methodology/approach The data consists of 1-, 6- and 12-month average time deposit rates of conventional and Islamic banks over the period of January 2000 to June 2017. The cointegration methodologies are used to explore links between the time deposit rates, real rates, inflation and risk premium. The causality tests to test causality linkages between pairs of variables are also applied. The generalised forecast error variance decomposition based on the error correction model is conducted to analyse the impact of variables variation on the deposit rates. Findings The results show the presence of two cointegration vectors in the deposit rates, real rates, inflation and risk premium, for both conventional and Islamic bank rates. Causality tests reveal that deposit rates are caused by inflation and risk premium in a one-way causality. The results of variance decomposition highlight the importance of inflation and risk premium in explaining the variations in the bank deposit rates. For the conventional bank, inflation shocks play the most important role in explaining the movements of the deposit rates. In Islamic banks, the major determinant’s largest influence is the risk premium. Between the two bank rates, Islamic bank rates receive more influence from the explanatory variables in the long-run compared to conventional bank rates. The real rates have no noticeable effect on the variance of time deposit rates for both banks. Originality/value This study presents new evidence on the relationship between time deposit rates and the three explanatory variables, which are the real interest rates, inflation and risk premium, for both conventional and Islamic banks in Malaysia. The dual banking system allows exploring the similarities and differences between conventional and Islamic banks in Malaysia in terms of the linkages between the variables.

Analisis Laporan Keuangan untuk Memgukur Kinerja Keuangan Perusahaan Telekomunikasi yang Terdaftar di Bursa Efek Indonesia

This study aims to assess the financial performance of PT Telekomunikasi Indonesia Tbk by analyzing financial statements using financial ratios. The research data was obtained from the Indonesia Stock Exchange (IDX). The results showed the performance of PT Telekomunikasi Indonesia Tbk based on liquidity ratios from 2015 to 2018 was not good, where the company's Current Ratio (CR) in 2015 to 2018 was less than 100%. The solvency ratio of PT Telekomunikasi Indonesia Tbk in 2015 to 2018 is good, where the company's Debt to Assets Ratio (DAR) in 2015 to 2018 is no more than 100%. The profitability ratio of PT Telekomunikasi Indonesia Tbk in 2015 to 2018 is good, where the results of the calculation of profitability ratios are greater than the one-year time deposit interest rate. The ratio of activities of PT Telekomunikasi Indonesia Tbk in 2015 to 2018 is not good, where the Total Assets Turn Over (TATO) is less than 1, which means the company is less productive. Keywords: Financial Statement, Financial Performance, Financial Ratios