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Book part
Publication date: 24 October 2013

Zubeyir Kilinc, Hatice Gokce Karasoy and Eray Yucel

The composition of bank liabilities has captured a lot of attention especially after the global financial crisis of 2008–2009. It is argued that a compositional change in…

Abstract

The composition of bank liabilities has captured a lot of attention especially after the global financial crisis of 2008–2009. It is argued that a compositional change in non-core liabilities reflects the different stages of financial cycle. Banks usually fund their credits with core liabilities, which grow with households’ wealth, but when there is a faster growth in credits compared to deposits, the banks often resort to non-core liabilities to meet the excess demand for loans. This chapter analyses the relationship between non-core liabilities and credits in a small open economy, namely Turkey. It investigates the relationship under alternative settings and presents consistent evidence on a robust relationship between credits and non-core liabilities under all frameworks. The study also verifies that elevated demand for credit may induce some increase in non-core liabilities. Finally, the relationship between non-core liabilities and credit growth is also affirmed in the long run.

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Article
Publication date: 20 January 2020

N’Banan Ouattara, Xiong Xueping, Trazié Bertrand Athanase Youan BI, Lacina Traoré, J.K. Ahiakpa and Odountan Ambaliou Olounlade

Several years after the regularization of microfinance activity in Côte d’Ivoire, smallholder farmers’ access to microfinance credits still remains marginal. The purpose…

Abstract

Purpose

Several years after the regularization of microfinance activity in Côte d’Ivoire, smallholder farmers’ access to microfinance credits still remains marginal. The purpose of this paper is to identify and analyze key determinants of access to microfinance credit in Sassandra-Marahoué District.

Design/methodology/approach

A total of 150 smallholder farmers were randomly sampled using an interview guide and semi-structured questionnaires. Univariate statistics and Probit binary modeling were employed for data analyses.

Findings

Results revealed that socio-economic/demographic characteristics of smallholder farmers and credit requirements imposed by microfinance institutions (MFIs) are key determinants of smallholder farmers’ access to microfinance credits in the district.

Research limitations/implications

Although, the authors shed light on the determinants of microfinance credit access for smallholder farmers in this district, the study focused on a single source of financial credit. Future research will need to explore the determinants of credit demand and the choice between different sources of rural credits in Côte d’Ivoire.

Practical implications

The findings suggest that MFIs seldom take into account smallholder farmers who are not engaged in off-farm income-generating activities and savings account; and those with low level of education. Sensitization programs on the importance of savings mobilization and credit policy by MFIs will potentially increase smallholder’s knowledge on credit access requirements and thereby increased access.

Originality/value

To the authors’ knowledge, this is the first study investigating determinants of smallholder farmers’ access to microfinance credits in Côte d’Ivoire specifically in the Sassandra-Marahoué District. The results of this study will serve as a guide for MFIs for improving smallholder farmers’ access to credit.

Details

Agricultural Finance Review, vol. 80 no. 3
Type: Research Article
ISSN: 0002-1466

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Article
Publication date: 17 August 2012

Ying Xu

In spite of being the second largest recipient of foreign direct investment (FDI) in the world, China shows limited evidence of considerable FDI benefits on growth (Fan…

Abstract

Purpose

In spite of being the second largest recipient of foreign direct investment (FDI) in the world, China shows limited evidence of considerable FDI benefits on growth (Fan and Hu; Luo; Ran et al.). Motivated by Alfaro et al.'s model, the purpose of this study is to test whether poor financial market development might be responsible for the relatively low benefits of FDI on growth in China.

Design/methodology/approach

The author applies Blundell‐Bond system GMM estimators to a panel of Chinese provinces.

Findings

The results indicate that poor financial intermediation does indeed limit the transmission of FDI benefits within the Chinese economy. Moreover, the study reveals preliminary evidence that banks' credits to unproductive state‐owned enterprises (SOEs) constitute poor financial intermediation with negative growth implications. In contrast, credits to small private enterprises are associated with a positive impact of FDI on growth.

Research limitations/implications

The study is constrained by data availability especially for private credit data across provinces.

Practical implications

Two policy implications can be drawn from the empirical findings. First, the direct policy implication is that to ensure positive benefits from FDI in China, domestic financial reforms are crucial. This is an important perspective for making FDI policies. The results also reveal some key priorities of financial reforms. More credits to small private enterprises are an indication of good financial intermediation, while more loans extended to unproductive SOEs signal poor financial intermediation. The priority of reform comes down to tackling the difficult problem of credit misallocation.

Originality/value

This paper provides an alternative perspective to address the weak FDI‐growth relationship found in China. Inspired by Alfaro et al.'s model and the understanding of the problem of Chinese financial markets, the study examines the role of the financial system in the FDI‐growth linkage and reveals how financial market conditions could influence FDI benefits in China.

Details

China Finance Review International, vol. 2 no. 4
Type: Research Article
ISSN: 2044-1398

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Article
Publication date: 25 February 2020

Fitim Deari, Valeriya Lakshina and Kseniya Lapshina

The purpose of this study is to empirically test the hypothesis about substitution of trade and bank credits during the crisis period among 1,570 firms from 16 developing…

Abstract

Purpose

The purpose of this study is to empirically test the hypothesis about substitution of trade and bank credits during the crisis period among 1,570 firms from 16 developing countries.

Design/methodology/approach

The study examines the dynamics of trade credits, following previous studies with special emphasis on the research by Love et al. (2007). The foregoing methodology was expanded by taking into account the effects of the interdependence between firms by means of spatial panel model.

Findings

The study reveals that, taking into account spatial effects, there is a positive relationship between bank and trade credits, that is, they behave as complements for each other. Significant positive spatial correlation, obtained for the firms within the same country or cluster, points to the presence of externalities inside these groups. The latter implies that neighboring firms demonstrate similar unidirectional dynamics of trade credits.

Originality/value

Results of this study may create a basis for policy implementation in the sphere of corporate lending, and allow to build appropriate supporting policies during crisis period.

Details

Journal of Economic Studies, vol. 47 no. 2
Type: Research Article
ISSN: 0144-3585

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Article
Publication date: 1 April 1996

David Pollitt

This special “Anbar Abstracts” issue of the Journal of Product & Brand Management is split into ten sections covering abstracts under the following headings: Marketing…

Abstract

This special “Anbar Abstracts” issue of the Journal of Product & Brand Management is split into ten sections covering abstracts under the following headings: Marketing strategy; Customer service; Pricing; Promotion; Marketing research; Product management; Channel management; Logistics and distribution; New product development; Purchasing.

Details

Journal of Product & Brand Management, vol. 5 no. 4
Type: Research Article
ISSN: 1061-0421

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Article
Publication date: 4 May 2012

Ali Polat

This paper seeks to examine the differences between traditional documentary credits and corporate issued documentary credits and to show the effects of these differences…

Abstract

Purpose

This paper seeks to examine the differences between traditional documentary credits and corporate issued documentary credits and to show the effects of these differences on the application of documentary credits within a fraud context.

Design/methodology/approach

The objective of the paper is achieved by analysis of relevant documents of related institutions together with some examples of works done by the authors from the field.

Findings

It is found that the documentary credits issued by corporations can be a tool for financial fraud due to lack of information in classifications and lack of experience for this product.

Practical implications

Companies dealing with international trade can benefit from the risk involved in that type of transactions. It is also possible that a new classification can also be arranged including corporate letters of credits.

Originality/value

The paper covers a topic which is almost untouched. As the number of documentary credits that are issued by corporates are rare and this is not also well documented in the theory was shown by this research. The absence of the information in theory and practice gives room to the fraudster.

Details

Journal of Financial Crime, vol. 19 no. 2
Type: Research Article
ISSN: 1359-0790

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Book part
Publication date: 19 March 2018

Fadi Hassan Shihadeh, Azzam (M. T.) Hannon, Jian Guan, Ihtisham ul Haq and Xiuhua Wang

This study investigates the relationship between financial inclusion (FI) and banks’ performance in the economy of Jordan using annual data of 13 commercial banks from…

Abstract

This study investigates the relationship between financial inclusion (FI) and banks’ performance in the economy of Jordan using annual data of 13 commercial banks from 2009 to 2014. Performance is measured by gross income and return on assets (ROA) of these banks. To ensure the robustness of our results, we used six different measures of FI. These include credits for small and medium enterprises (SMEs), deposits for SMEs, number of ATMs, number of ATM services, number of credit cards, and new services. We found a significant impact of FI on ‘ performance when measured by gross income, and ROA, although our study displays different results when considering the effect of FI variables separately. Thus, FI contributes to enhance the banks’ performance. Therefore, the banks should devote more resources to increase FI as it benefits their profitability.

Details

Global Tensions in Financial Markets
Type: Book
ISBN: 978-1-78714-839-0

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Article
Publication date: 1 March 2002

This guide is compiled in order that banks may see the extent of the overall problem of fraud and money laundering in documentary credit transactions. It also contains…

Abstract

This guide is compiled in order that banks may see the extent of the overall problem of fraud and money laundering in documentary credit transactions. It also contains advice on how banks and bankers may protect themselves and their staff from the consequences of fraudulent attacks against the system.

Details

Journal of Money Laundering Control, vol. 5 no. 3
Type: Research Article
ISSN: 1368-5201

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Article
Publication date: 22 February 2011

Abel E. Ezeoha

The aim of this paper is to identify the major determinants of bank asset quality in an era of regulation‐induced industry consolidation, using the Nigerian case to…

Abstract

Purpose

The aim of this paper is to identify the major determinants of bank asset quality in an era of regulation‐induced industry consolidation, using the Nigerian case to demonstrate how consolidation can heighten incidences of non‐performing credits in a fragile banking environment.

Design/methodology/approach

The paper makes use of panel data from 19 out of a total of 25 banks operating in Nigeria. A multivariate constant coefficient regression model is adopted as the estimation technique. The dependent variable in the model is quality of bank assets, proxied as the proportion of non‐performing loans (NPL) to total loans; while operating efficiency, profitability, asset liquidity, loans to deposits ratio, predictability of depositors' behaviour, size of bank capital, and board skill constitute the exogenous variables.

Findings

The study reveals that deterioration in asset quality and increased credit crisis in the Nigerian banking industry between the periods 2004 and 2008 were exacerbated by the inability of banks to optimally use their huge asset capacity to enhance their earnings profiles. It shows that excess liquidity syndrome and relatively huge capital bases fueled reckless lending by banks; and that increase in the level of unsecured credits in banks' portfolios ironically helped to mitigate the level of NPL within the studied period.

Research limitations/implications

The findings here should be interpreted with caution. The reason is because of the relatively fewer number of observations and the likely biases associated with the use of pooled regression approach.

Originality/value

This paper is one of the first to investigate the specific impact of banking consolidation on the quality of bank assets in an underdeveloped financial system. Among such countries facing such challenge, the Nigerian case is unique considering that the 2004/2005 banking consolidation in the country was recorded as the largest in the history of banking in Africa. The findings here make clearer the policy/practical implications of using regulation‐induced consolidation to pursue the goal of increased credit flows in a less developed financial system.

Details

Journal of Financial Regulation and Compliance, vol. 19 no. 1
Type: Research Article
ISSN: 1358-1988

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Article
Publication date: 15 June 2020

Sohel Mehedi, Habibur Rahman and Dayana Jalaludin

The paper aims to examine the level of agricultural credit by commercial banks and the determinants that influence the commercial banks to the increased level of…

Abstract

Purpose

The paper aims to examine the level of agricultural credit by commercial banks and the determinants that influence the commercial banks to the increased level of agricultural credit through the pressures of the institutional environment.

Design/methodology/approach

The study selects seventeen sample commercial banks following the market capitalization method and investigates a total of 85 annual reports during the period from 2013 to 2017. The study conducts a pooled regression to conclude the proposed hypotheses.

Findings

The present study finding indicates that the average of agricultural credits to total credits is 2.25% among the sample commercial banks. The study finds a positive significant association between board gender diversity, foreign director, management team and agricultural credit. Furthermore, the study has found that the role of the deposit in enhancing agricultural credit is positive. On the other hand, the association between independent directors, profitability and agricultural credits is negative.

Research limitations/implications

The study is based on secondary data with five firm-year observations of commercial banks. The study finding is based on commercial banks, so it should not be generalized to non-bank financial institutions.

Practical implications

The study emphasizes policymakers’ attention towards the level of agricultural credit and determinants that influence the level of agricultural credit by commercial banks in emerging markets.

Originality/value

The key contribution of the study is to focus on the reformist role of the determinants in promoting the increased level of agricultural credit in the emerging markets.

Details

International Journal of Social Economics, vol. 47 no. 7
Type: Research Article
ISSN: 0306-8293

Keywords

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