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Article
Publication date: 1 April 1978

Maurice B Line

After outlining the unique functions of the Lending Division, the paper explains the interaction between it and the British Library as a whole. Policy‐making in such an…

Abstract

After outlining the unique functions of the Lending Division, the paper explains the interaction between it and the British Library as a whole. Policy‐making in such an organisation is complex and this is achieved by a series of meetings ranging from the British Library Board, which deals with major decisions for the whole Library, through senior management at the Lending Division holding regular meetings to discuss all aspects of its work to meetings between junior management with their staff, where minor and major problems can be ironed out. The staff structure of the Lending Division emphasises the low ratio of senior to junior staff. Because of its size and uniqueness the Lending Division pays particular attention to communications both within and without; internally this is achieved by meetings between various grades of staff and a Newsletter, externally by a number of publications, participation in conferences, extensive advisory machinery and the publication of its own journal.

Details

Interlending Review, vol. 6 no. 4
Type: Research Article
ISSN: 0140-2773

Article
Publication date: 4 October 2022

Laura Gonzalez

The 2008 and 2020 crises reinvigorated discussions on the need to deepen financial inclusion through fintech. Peer-to-peer (P2P) lending facilitates pro-social direct…

Abstract

Purpose

The 2008 and 2020 crises reinvigorated discussions on the need to deepen financial inclusion through fintech. Peer-to-peer (P2P) lending facilitates pro-social direct lending to less “bankable” strangers while providing returns to at-times less experienced lenders. Information asymmetries and credit risk are substantial, and previous research finds suboptimal heuristics in for-profit lenders (Gonzalez, 2022). This study examines further the role of gender to facilitate “doing well while doing good”.

Design/methodology/approach

This study examines 663 pro-social lending decisions by finance students on a mock P2P site. Testimonials were used to condition participants towards pro-social decision-making. Each participant was asked to make three lending decisions. The three loan applications were identical except for a female or male headshot (vs a control icon), and a randomly assigned difference in the trustworthiness or popularity of the male vs female loan applications among other lenders. Loan popularity is reported as a lower number of days needed to fund half the identical loan amount requested in the three loan applications (3 vs 11 days for headshot applications, and 7 days for control one).

Findings

Self-recognition in similar-age borrowers is more pronounced for lenders who have experienced financial trauma. Second, male lenders report higher confidence in their financial literacy and cash collateral. Third, cash collateral increases lending only to female borrowers. Fourth, higher perception of one's financial literacy increases confidence only when lending to females.

Originality/value

This is the first study to examine the role of gender, financial literacy, identification with borrowers, and collateral perception in pro-social P2P lending.

Details

Managerial Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 9 September 2022

Xi Zhang, Yihang Cheng, Juan Liu, Hongke Zhao, Dongming Xu and Yulong Li

Prosocial lending in online crowdfunding has flourished in recent years, and it has become a new way to fundraise for philanthropy. However, there is almost a 70% user…

Abstract

Purpose

Prosocial lending in online crowdfunding has flourished in recent years, and it has become a new way to fundraise for philanthropy. However, there is almost a 70% user attrition rate in crowdfunding. The purpose of this study is to understand what the lender’s lending experience and social connection influence lender retention of online prosocial lending from a self-determination perspective.

Design/methodology/approach

Drawing on self-determination theory (SDT), this research utilizes a quantifiable method for factors of the lender's lending experience and social connection. Additionally, the research constructs economic models to explore the impacts of these factors acting as the necessary conditions for basic psychological needs on lender retention, using a large-scale sample of over 380,000 lenders from Kiva.

Findings

The results indicate that, from the lender's lending experience aspect, the loan narratives with more profit language in the last lending and the failure of past participation are negatively related to lender retention. Regarding the lender's social connection aspect, their friends or small lending teams are positively related to lender retention, while whether they are invited and lending team size show negative influence. Furthermore, results indicate the moderating effects of the disclosure of lending motivation.

Originality/value

This research explores the mechanism of lender retention of online prosocial lending, providing a self-determination perspective about how previous experience influences long-term lending behavior. The study offers significant implications for the literature on online philanthropy, SDT and user retention of online platforms. At the same time, the study provides an understanding of the effects of different aspects of SDT.

Details

Internet Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1066-2243

Keywords

Open Access
Article
Publication date: 9 September 2022

Retselisitsoe I. Thamae and Nicholas M. Odhiambo

This paper aims to investigate the nonlinear effects of bank regulation stringency on bank lending in 23 sub-Saharan African (SSA) countries over the period 1997–2017.

Abstract

Purpose

This paper aims to investigate the nonlinear effects of bank regulation stringency on bank lending in 23 sub-Saharan African (SSA) countries over the period 1997–2017.

Design/methodology/approach

This study employs the dynamic panel threshold regression (PTR) model, which addresses endogeneity and heterogeneity problems within a nonlinear framework. It also uses indices of entry barriers, mixing of banking and commerce restrictions, activity restrictions and capital regulatory requirements from the updated databases of the World Bank's Bank Regulation and Supervision Surveys as measures of bank regulation.

Findings

The linearity test results support the existence of nonlinear effects in the relationship between bank lending and entry barriers or capital regulations in the selected SSA economies. The dynamic PTR estimation results reveal that bank lending responds positively when the stringency of entry barriers is below the threshold of 62.8%. However, once the stringency of entry barriers exceeds that threshold level, bank credit reacts negatively and significantly. By contrast, changes in capital regulation stringency do not affect bank lending, either below or above the obtained threshold value of 76.5%.

Practical implications

These results can help policymakers design bank regulatory measures that will promote the resilience and safety of the banking system but at the same time not bring unintended effects to bank lending.

Originality/value

To the best of the authors’ knowledge, this is the first study to examine the nonlinear effects of bank regulatory measures on bank lending using the dynamic PTR model and SSA context.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 13 September 2022

Dini Rosdini, Ersa Tri Wahyuni and Prima Yusi Sari

This study aims to explore credit scoring regulations, governance, variables and methods used by peer-to-peer (P2P) lending platforms in key players of the Association of…

Abstract

Purpose

This study aims to explore credit scoring regulations, governance, variables and methods used by peer-to-peer (P2P) lending platforms in key players of the Association of Southeast Asian Nations (ASEAN) region’s P2P, Indonesia, Malaysia and Singapore.

Design/methodology/approach

This study explores the P2P Lending characteristics of the three countries using qualitative literature review, interview, focus group discussion and desk research.

Findings

This study concludes that the credit scoring variables used by the countries’ companies are almost the same. Key drivers of the differences are countries’ regulations, management/business core value and credit scoring data processing methods.

Practical implications

Ultimately, this research provides a comprehensive view for investors, businesses and researchers on the topic of ASEAN credit scoring governance and will help them navigate the complexities and improve their awareness on the importance of credit scoring governance in P2P lending companies.

Originality/value

This research provides an in-depth perspective on how P2P lending companies, credit scoring governance and regulations in the biggest three countries in Southeast Asia.

Details

Journal of Science and Technology Policy Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2053-4620

Keywords

Article
Publication date: 13 September 2022

Laura Gonzalez

Peer-to-peer (P2P) lending facilitates direct online lending and aims to provide financial inclusion and investment returns. Lender goals range from for-profit to…

Abstract

Purpose

Peer-to-peer (P2P) lending facilitates direct online lending and aims to provide financial inclusion and investment returns. Lender goals range from for-profit to pro-social and objective information is limited, which highlights the need to examine heuristics.

Design/methodology/approach

This study examines 1,347 lending decisions by finance students on a mock P2P site. Testimonials were used to randomly condition the financially literate lenders towards for-profit or pro-social decision-making. Each investor evaluated three loans. The three loan applications were identical except for a female or male headshot (vs an icon) and random reports of 50% funding for the female or male loan in 3 days (vs 11 days for opposite gender and 7 for icon). Previous research surveys students on a mock platform (Gonzalez, 2020) and reports similar heuristics and lifelike decisions in student and general population samples (Gonzalez and Komarova, 2014).

Findings

Lenders randomly conditioned towards pro-social lending state lower trust in borrowers. However, pro-social investors state lower risk in P2P lending and higher financial literacy. Second, pro-social investors are more confident when lending to borrowers highly trusted by other lenders, especially if the popular loan applicant is female. Third, pro-social conditioning increases lending to male applicants when the popular loan applicant is female. Fourth, pro-social investors who have experienced financial trauma have greater confidence in bad loan recovery.

Originality/value

This is the first study of heuristics in pro-social vs for-profit P2P lending. In addition, it shows that testimonials can effectively condition lending goals and affect trust and risk perceptions.

Details

Managerial Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0307-4358

Keywords

Article
Publication date: 18 September 2007

TieCheng Yang and Lucas Wang

The aim of this paper is to explain the details of a trial program in China to introduce margin trading and securities lending.

1235

Abstract

Purpose

The aim of this paper is to explain the details of a trial program in China to introduce margin trading and securities lending.

Design/methodology/approach

The paper describes eligibility requirements for securities companies and their clients; accounts for margin trading and securities lending to be opened by the securities company; contracts between a securities company and its client that must be entered into; collateral a client is required to provide to the securities company; a client's rights and entitlement with respect to collateral; internal rules and precautions required of the securities company; the securities company's risk control requirements; and the possible impact of the new program on foreign investors.

Findings

The paper finds that the conduct of margin trading and securities lending in China is highly regulated. There are significant requirements with respect to separate accounts, collateral, contracts, and controls. Before providing margin trading or securities lending to clients, securities companies are required to carefully assess and determine the identity, creditworthiness, assets, income, securities investment experience, investment preferences, and risk appetite of their clients. The securities company must explain how the margin trading and securities lending will be conducted and the content of the contracts to the client, and require the client to sign a transaction risk disclosure letter that specifies certain risks involved in such business. A client may only maintain margin trading facilities and securities lending business with one securities company in China.

Originality/value

The paper provides a practical guide to a new program by lawyers who are experts in Chinese securities regulations.

Details

Journal of Investment Compliance, vol. 8 no. 3
Type: Research Article
ISSN: 1528-5812

Keywords

Article
Publication date: 9 August 2022

Ghada Tayem

This study aims to investigate the role of bank ownership (foreign versus domestic) and the type of service (Islamic versus conventional) on bank lending to large…

Abstract

Purpose

This study aims to investigate the role of bank ownership (foreign versus domestic) and the type of service (Islamic versus conventional) on bank lending to large enterprises and small and medium enterprises (SMEs).

Design/methodology/approach

Based on previous literature, the study proposes that foreign banks lend more to large enterprises and less to SMEs than domestic banks do. It also proposes that Islamic banks lend more to SMEs than conventional banks do. It utilizes unique hand-collected data of Jordanian banks from 2007 to 2018 to carry out its investigation. It applies regression estimation methods and propensity score matching to test its hypotheses.

Findings

Consistent with prior empirical evidence, the findings show that foreign banks lend significantly less (more) to SMEs (large enterprises) than their domestic counterparts. However, the findings indicate that Islamic banks lend significantly less to SMEs than their conventional counterparts. Further analysis shows that Islamic banks operating in Jordan are ultimately owned by foreign investors hence their incentives to adopt full features of Islamic financial instruments are confounded by their incentives to utilize transaction lending technologies which in turn attenuates the expected positive impact of Islamic banking services on SMEs finance.

Originality/value

This research provides novel evidence on the impact of Islamic banks on SMEs finance as the results suggest that the success of Islamic finance in bridging the gap of SMEs finance is conditional on embracing its full features.

Details

EuroMed Journal of Business, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1450-2194

Keywords

Article
Publication date: 12 August 2022

Van Dan Dang and Hoang Chung Nguyen

This paper aims to investigate the link between uncertainty in banking and bank lending behavior, particularly shedding light on the modifying role of bank competition in…

Abstract

Purpose

This paper aims to investigate the link between uncertainty in banking and bank lending behavior, particularly shedding light on the modifying role of bank competition in the nexus.

Design/methodology/approach

The study uses a panel of Vietnamese banks over the 2007–2019 period for empirical analysis and the dispersion of shocks to bank-level variables to measure banking uncertainty. To strongly confirm our findings, the authors perform a battery of alternative checks based on different econometric techniques, including fixed effect regressions with Driscoll–Kraay standard errors, the two-step system generalized method of moments estimator and the least squares dummy variable-corrected estimator.

Findings

Uncertainty induces multifaceted unfavorable impacts on bank lending. Concretely, banks tend to restraint loan growth, suffer more credit risk, and charge higher lending rates during periods of higher uncertainty. Further investigation reveals that lending activities of banks with greater market power are less sensitive to adverse uncertainty shocks; in other words, increased competition in the banking system is associated with more substantial consequences of uncertainty on bank lending.

Originality/value

To the best of the authors’ knowledge, this study is the first attempt to simultaneously explore the impacts of uncertainty on quantity, quality and prices of bank lending. This paper also aim at putting forth the level of uncertainty particularly related to the banking sector. Importantly, examining the conditionality of the linkage between uncertainty and bank lending with respect to bank competition is entirely novel.

Details

Journal of Asia Business Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1558-7894

Keywords

Article
Publication date: 5 August 2022

K.S. Sastry Musti and Neeta Baporikar

This study aims to deliberate and illustrate the overall peer-to-peer (P2P) business process, user requirements and design considerations under Industry 4.0 based on…

Abstract

Purpose

This study aims to deliberate and illustrate the overall peer-to-peer (P2P) business process, user requirements and design considerations under Industry 4.0 based on enterprise information system for P2P lending.

Design/methodology/approach

Exploratory approach with a systematic literature review and content analysis method.

Findings

P2P lending uses different credit audition methods and relies on information available in the system and the decision model. So IT techniques, for example, big data analysis and data mining, on credit audition are key points in P2P lending but the application of Industry 4.0 to the P2P lending landscape can yield several new benefits with a well-designed EIS, which is critical to service various stakeholders.

Research limitations/implications

This study is exploratory in nature and may need more testing on an empirical basis before drawing generalizations. Implications of research included in this area are that it poses good challenges to researchers from different disciplines such as economics, business management and information, communication and technology.

Originality/value

Deliberations of business process for P2P lending via enterprise information system under Industry 4.0 in the African context is of value as these emerging economies adopt new systems and processes to meet the requirements of Industry 4.0.

Details

Journal of Science and Technology Policy Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2053-4620

Keywords

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