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In this paper, the authors investigate whether coronavirus disease 2019 (COVID-19) impacts household finances, like household debt repayments in the UK.

This paper employs a vector autoregressive (VAR) model that nests neural networks and uses Mixed Data Sampling (MIDAS) techniques. The authors use data information related to COVID-19, financial markets and household finances.

The authors' results show that household debt repayments' response to the first principal component of COVID-19 shocks is negative, albeit of low magnitude. However, when the authors employ specific COVID-19-related data like vaccines and tests the responses are positive, insinuating the underlying dynamic complexities. Overall, confirmed deaths and hospitalisations negatively affect household debt repayments. The authors also report low persistence in household debt repayments. Generalised impulse response functions (IRFs) confirm the main results. As draconian measures, the lockdowns are eased and the COVID-19 shocks are diminishing, and household financial data converge to the levels prior to the pandemic albeit with some lags.

To the best of the authors' knowledge, this is the first study that examines the impact of the pandemic on household debt repayments. The authors' findings show that policy response in the future should prioritise innovation of new vaccines and testing.

The purpose of this paper is to engage in a systematic examination of previous scholarship on the relationship between Sharia governance (SG), which is represented by the Sharia Supervisory Board (SSB), and the Internal Sharia Review (ISR), to determine whether the ISR can minimize financing risk in Islamic banking.

The literature search consisted of two steps: a randomized and systematic literature review. The methodology adopted in this article is a systematic literature review.

To reduce the risk of financing in Islamic banking, SG must be implemented optimally by making rules regarding the role of the SSB in supervising customer financing. In addition, it is a necessary to establish an entity that assists the SSB in the implementation of SG, namely, the ISR section, but there is still very little research on the role of the SSB and ISR in minimizing financing risk.

Establishing an ISR to assist the SSB in carrying out its duties has direct practical implications for Islamic banking: minimizing financing risks and compliance with Islamic Sharia principles. In addition, new rules regarding the role of SSBs and the ISR in reducing credit risk include monitoring customers to ensure that they fulfill their financing commitments on time. This new form of regulation and review can be used as a reference by the Otoritas Jasa Keuangan or Finance Service Authority to create new policies or regulations regarding SG, especially in Indonesia.

Subsequent research may introduce other more relevant variables, such as empirically testing the competence, independence or integrity of SSB and the ISR team as it attempts to minimize the risk of financing in Islamic banks. In addition, further research is expected to examine whether the SSB or the ISR team has a positive or negative influence on the risk of financing Islamic banks with secondary data.

This paper aims to propose a new indicator of product differentiation in the mortgage market and use it to examine how the double crisis, local market competition and bank-specific characteristics have influenced the supply of non-conventional mortgages in Italy.

This paper uses a special Bank of Italy’s survey on 400 Italian banks over the period 2006–2013, to compute a new indicator for product differentiation in the mortgage market. This paper considers mortgage with non-conventional characteristics: loan-to-value ratio greater than 80%; duration longer than 30 years or with a flexible maturity. This paper estimates probit and ordinary least squares (OLS) models using panel data at bank-time level.

The findings suggest that during the double crisis that hit the Italian economy between 2008 and 2013, the diversification process in the Italian household mortgage market slowed down. Controlling for banks’ and local markets’ this study finds that larger, less risky banks and those that have adopted scoring systems are more likely to offer non-conventional mortgages; moreover, banks operating in more competitive markets and in markets where other banks offer non-conventional loans tend to diversify their supply more. Most of these indications are confirmed by analyzing the quantities actually granted. These results suggest that the structure of the local markets does matter, and that there could be a non-price competition effect among banks in providing differentiated mortgage contracts.

The indicator, computed using data at bank level drawn from a special Bank of Italy’s survey, goes beyond the standard approach on product differentiation followed in the empirical literature, mainly base on the dichotomy between fixed and variable lending rates. Furthermore, to best of the authors’ knowledge, so far there is no empirical evidence on the supply-side factors that influenced the diversification of mortgages’ contractual terms during the crisis; particularly, there is no evidence on the role of local market competition and bank-specific features. This paper contributes to fill this gap in the literature.

At the end of 2011, one of the largest food retailers in Brazil, Grupo Pão de Açúcar, or GPA (a subsidiary of Companhia Brasileira De Distribuição, or CBD), was reviewing its accounts payable terms with suppliers in search of additional value. Manager of analytics Maria Cristina Santos was examining the trade credit terms GPA had with Oalem Ltda, a family-owned melon grower located in northeastern Brazil. Oalem, like most small family businesses, was financed with bank loans and equity that was held predominantly by the family. The case examines how accounts payable (trade credit) terms should be set or negotiated between a large retailer and a small supplier, especially when the bargaining power between the two may not be equal. The case demonstrates that trade credit terms can be as important as the terms of more traditional forms of financing.

After analyzing and discussing the case, students should be able to:

• Determine when it is efficient or value-increasing for one nonfinancial firm to borrow from another nonfinancial firm through trade credit, as opposed to borrowing from financial institutions (e.g., banks) or financial markets

• Understand how competition or relative bargaining power can influence feasible and optimal trade credit terms

• Explain why trade credit can be a cheaper form of financing than the alternative forms of financing available to small family businesses like Oalem Ltda

Determine when it is efficient or value-increasing for one nonfinancial firm to borrow from another nonfinancial firm through trade credit, as opposed to borrowing from financial institutions (e.g., banks) or financial markets

Understand how competition or relative bargaining power can influence feasible and optimal trade credit terms

Explain why trade credit can be a cheaper form of financing than the alternative forms of financing available to small family businesses like Oalem Ltda

Financing is cited as the major obstacle for entrepreneurs. However, data limitations have prevented study of entrepreneurs’ own impact on their financing relationships. Gender-based studies have concerned lender constraints and discriminatory outcomes. Others which are generally examined are borrowers’ fear of denial and non-pursuit of credit. To more fully explain the financing obstacle, the purpose of this study is to uniquely examine entrepreneurial borrowers’ evaluation of and actions in their existing financing relationship. This study also captures those businesses with equal ownership gender concentration, to contribute to a deeper understanding of gender impact.

This study uses a cross-sectional sample of several thousand US small enterprises from the NFIB’s proprietary credit survey. The data set offers links between owners’ perceptions and financing behavior. Robust univariate analysis examines differences across gender ownership groups. Multivariate regression analyzes how gender, business environment and other factors determine the entrepreneurs’ financing relationships.

This study highlights how entrepreneurs affect their own financing outcomes. Findings suggest that switching lenders, seeking multiple relationships and other actions determine financing satisfaction. Growth intent, business performance and characteristics of the entrepreneur are among significant posited factors influencing perception and behavior of entrepreneurs in their financing relationships that drive business performance. Furthermore, equal ownership concentration firms appear to be similar to those primarily owned by men. This study indicates that researchers need to further delineate among entrepreneurs. The results of this study also have implications for policy-makers in their assessment of gender discrimination and government entrepreneurial financing initiatives.

Financing is cited as the major obstacle for entrepreneurs. However, data limitations have prevented study of entrepreneurs’ own impact on their financing relationships. Gender-based studies have concerned lender constraints and discriminatory outcomes. Others which are generally examined are borrowers’ fear of denial and non-pursuit of credit. To more fully explain the financing obstacle, this study uniquely examines entrepreneurial borrowers’ evaluation of and actions in their existing financing relationship. This study also captures those businesses with equal ownership gender concentration, to contribute to a deeper understanding of gender impact.

This paper aims to investigate the debated nexus of financial inclusion (FI) and financial stability (FS) in a comprehensive way, with several indicators of FI, considering nonlinearity and cross-country heterogeneity.

The authors introduce several indexes for FI by applying principal component analysis (PCA) and explore their impact on stability for a sample of 108 countries and subsamples based on income grouping as well as for pre- and post-crisis episodes over the period 2004–2017. To address the heterogeneity and endogeneity, the authors use the two-step quantile regression (2SQR), three-stage least square (3SLS) and two-step system-GMM (System-GMM).

The findings reveal that the relationship of FI and stability depends on the measurement of FI used and the heterogeneity of different macroeconomic factors. Besides, there is nonlinearity, irrespective of the measurement of inclusion used. The findings also confirm that the effect of FI is more prominent in countries with strong governance. The results are robust to several robustness validations, which could be useful for policymakers to align the divergence of these policies and ensure FS while expanding access to formal financial services.

This study makes an attempt to explore the reasons behind the debated empirical findings of the existing literature by revisiting the nexus using several disaggregated indexes, each representing individual dimension and a multidimensional index, examine the possible nonlinearity and investigate the conditioning effect of different macroeconomic factors that might play a significant role in this relationship.

Empirical research on the relationship between financial inclusion and economic growth has neglected the influence of religion or secularism. This study aims to investigate the effect of financial inclusion on economic growth in religious and secular countries.

The financial inclusion indicators are the number of automated teller machines (ATMs)per 100,000 adults and the number of bank branches per 100,000 adults. These two indicators are the accessibility dimension of financial inclusion based on physical points of service. The two-stage least square (2SLS) regression method was used to analyze the effect of financial inclusion on real gross domestic product (GDP) per capita growth and real GDP growth in religious and secular countries.

Bank branch contraction significantly increases economic growth in secular countries. Bank branch expansion combined with greater internet usage increases economic growth in secular countries while high ATM supply combined with greater internet usage decreases economic growth in secular countries. This study also finds that bank branch expansion, in the midst of a widening poverty gap, significantly increases economic growth in religious countries, implying that financial inclusion through bank branch expansion is effective in promoting economic growth in poor religious countries. It was also found that internet usage is a strong determinant of economic growth in secular countries.

Few studies in the literature examined the effect of financial inclusion on economic growth. But the literature has not examined how financial inclusion affects economic growth in religious and secular countries.