Ownership structure and loan quality of deposit money banks in Nigeria

Purpose - This study examined the effect of Ownership Structure (Management Shareholding and Ownership Concentration) on the loan quality (LDR) of banks in Nigeria for a period of 10 years (2008-2017). The study utilized data extracted from the annual reports of the fourteen (14) studied banks.Method - Robustness tests were carried out to determine: the existence or otherwise of multi-collinearity, fitness of the model and appropriate regression analysis for the study. Descriptive statistics, correlation and Fixed Effect GLS regression were used to describe and analyze the data.Result - The study found that, ownership structure (ownership concentration and management shareholding) has significant negative effect on loan quality of banks in Nigeria.Implication - The implications of this research is that increased ownership concentration as well as management shareholding can strengthen banks’ loan quality owing to reduced proportion of depositors funds used to finance loan. This could spur confidence in the bank by the general public with regards to the safety of their deposits.Originality - This study is different from other studies that concentrated on the use of ownership structure in relations to various financial performance measurements such as ROA, ROE, NPM among other. In this study, effort was made to consider the financial health of banks owing to the nature of their business (loan).

Lily Purnama

People's Business Credit (KUR) is a government program to increase Small, Micro, and Medium Enterprises (UMKM). Micro Business Loan (KUR) is a credit for financing productive business segment of micro, small, medium, and cooperative feasible but not yet bankable for working capital and / or investment credit through direct and indirect financing pattern (linkage) guaranteed by Lembaga Penjamin Kredit. This study aims to examine how the implementation of KUR distribution and its role in the empowerment of women. This research uses mixed methods method. The sample in this research was 71 respondents who were drawn using Taro Yamane formula with precision 0,1. The location of this research is PT. Bank Mandiri branch of Medan Iskandar Muda (Tbk). The results of this study show that the distribution system of KUR PT. Bank Mandiri branch of Medan Iskandar Muda (Tbk) through nine stages using the 5 C standard (Capital, Collateral, condition, character, capacity) as the implementation guideline. The results of the study of obtaining the KUR program have a good impact on the business development and personal debtor. This is because the survey system conducted on an ongoing basis by PT. Bank Mandiri branch of Medan Iskandar Muda (Tbk) forced the debtor to discipline in financial management.

Green finance incentives: An empirical study of the Pakistan banking sector

In 21 century the climate change has become an important issues for businesses as well as stockholders. Consequently, to reduce carbon emission financial institutions offer green financing to businesses to mitigate this issue. However, the availability of green loan remains the important case. Therefore this research aims to know how this financing gap can be minimized. A panel design dataset was collected which consists of green financing data for the period 2009 to 2015 from 24 banks operating in Pakistan. We applied Two-stage Least Square Regression Analysis for data analysis. The results revealed that green loans are a less risky investments. Further, the findings also provides useful information to managers who look for grow their business loan and minimize default risk. This study contributes to the existing literature in green financing by filling the gap, particularly for developing countries through empirical evidence. The finding suggests that banks must invest more in green projects.

Part IV Vitiation, 14 Undue Influence

The equitable doctrine of undue influence operates to protect weaker parties from the abuse of their relationships by stronger parties. The five main topics within this chapter are: (i) undue influence can be (a) proved, and is then called ‘actual undue influence’, or (b) it can be inferred to have arisen, and it is then called ‘presumed undue influence’; (ii) for the purpose of presumed undue influence, the law recognizes certain standard relationships of trust and confidence (solicitor and client, guardian and ward, etc); non-standard relationships might be shown, on the facts of the case, to involve such a relationship; for example, this is necessary with respect to marital relationships and relations between banker and customer; (iii) the presumption that there has in fact been an abuse of a relationship is activated within the presumed category if the relevant transaction or gift ‘calls for explanation’; (iv) if actual undue influence, or the presumed form, is shown, it is incumbent on the stronger party to satisfy the court that, nevertheless, the weaker party entered the transaction, or made the gift, with free and informed consent; (v) one important context is the giving of guarantees by spouses or partners to support the receipt by the other spouse of partner of a business loan.

ELSAMI (ELECTRONIC SADAQAH FOR MICROBUSINESS)

Abstrack: World Bank data states that there are 48% of households that have saved or deal with banks. This means that the remaining 52% is not affordable, so businesses cannot develop. The solution in the form of a Sharia Business Loan (PUSYAR) has been carried out by the Mojokerto Government to overcome this problem. PUSYAR is an Islamic financial instrument that provides financing to micro businesses. PUSYAR still has some disadvantages in providing assistance to micro businesses or in supporting financial inclusion. The main problem from the community side is the inconsistency of the number of sadaqah, and the community does not get assistance in the PUSYAR program so that the business undertaken is not sustainable or confused with the existing contract. We have innovated by making a grand-design application for ELSAMI (Electronic Sadaqah for Microbusiness) as a financial inclusion that can increase the sustainability of micro businesses. This application will contain information starting from the introduction of the program, the type of program, the number of micro businesses as a place for channeling funds and can make it easier for people to share their beliefs online. Keywords: Financial Inclusion, Microbussiness, Pusyar, ELSAMI, Sadaqah

Pelaksanaan Eksekusi Benda Jaminan Kredit yang Tidak Mencukupi untuk Pelunasan Utang di Koperasi Guna Arta Karangasem

This study aims to determine the credit agreement or business loan between the customer and the cooperative and to find out the settlement in the event of a dispute in the credit agreement between the customer and the cooperative. This study uses empirical research methods where the method is based on positive law and norms. The results showed that the agreement made between the cooperative and the customer is based on the agreement of the parties who are ready to carry out their obligations and get rights. The obligation of the cooperative to provide loan funds to customers is the right of the cooperative to benefit from interest from customer loan funds. The obligation of the customer to pay the loan on time that has been agreed upon because he has lent funds, the right of the customer to get a loan for the customer's needs according to the agreement of the parties. Then, the agreement of the parties is not a guarantee that there will be no default, the importance of a legal attorney in an agreement makes it easier to resolve problems between the parties. Legal attorneys provide options for ending the case through the court (litigation) and settlement in a family way (non-litigation). Most parties use the non-litigation route because they want everything to be done quickly but at low cost. If the non-litigation solution does not find a middle ground, the case will proceed to court. Judge's rule applies to parties in litigation from the time until the costs incurred. Those who lost are willing to be asked for compensation for their actions.

Acts of Congress and COVID-19: A Literature Review on the Impact of Increased Unemployment Insurance Benefits and Stimulus Checks

Congress passed the first COVID-19 relief package for businesses and individuals in March 2020, when the Coronavirus Aid, Relief and Economic Security (CARES) Act was enacted, providing, among other things, one-time stimulus checks for individuals, extended unemployment insurance (UI) benefits, relief for state and local governments, liability protection, and the Paycheck Protection Program for small-business loan forgiveness.

The Impact of Federal Home Loan Bank (FHLB) Advances on Small Business Lending by Community Banks—2010–2016

In this paper, we examine the relationship between small business loan growth and growth in core deposits and Federal Home Loan Banks (FHLBs) advances from 2010 to 2016. Controlling for other effects, we find that the relationships between small business loan growth is positively and significantly related to both FHLB advance growth and core deposit growth, with the coefficient on advance growth being significantly larger than the coefficient on core deposits over the entire sample period. We also tested whether this relationship changed after 2014:3 reflecting the Federal Reserve’s relaxation of the regulatory burden on smaller banks. We find that the relationship between loan growth and core deposit growth became more positive after the change, but the relationship between loan growth and FHLB advance growth did not. As a result, we could no longer reject the hypothesis that the coefficient on core deposit growth was equal to the coefficient on FHLB advance growth after 2014:3. This provides some empirical support that the regulatory changes in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (DFA) influenced small business lending by strengthening the impact of the growth in core deposits on the growth of small business lending, complementing the work of Bordo and Duca (2018) that changes in DFA had some unintended negative consequences for lending to small businesses. It also suggests that lowering the regulatory burden faced by community banks (which have a larger proportion of core deposits to total assets than non-community banks) could improve the incentive to increase small business lending. It also implies that FHLB advances remain an important funding tool at the margin to give commercial banking organizations greater liquidity and flexibility in funding their balance sheets.