Study on loan interest rates risk of commercial banks based on adverse selection

2013 ◽  
pp. 149-155
Author(s):  
Jinhong Wang
Keyword(s):  
Interest Rates ◽  
Adverse Selection ◽  
Commercial Banks ◽  
Loan Interest Rates

scholarly journals A Tripartite Game-Theory-Based Cooperation Mechanism for the Electronic Warehouse Receipt Pledge Financing Mode

2021 ◽  
Vol 2021 ◽  
pp. 1-8
Author(s):  
Junwei Jia ◽  
Haoyue Zhang ◽  
Qi Wang
Keyword(s):  
Interest Rates ◽  
Influencing Factors ◽  
Commercial Banks ◽  
Evolutionary Game ◽  
Information Service ◽  
Equilibrium Strategy ◽  
Selection Strategy ◽  
Game Equilibrium ◽  
Cooperation Mechanism ◽  
Loan Interest Rates

To explore the electronic warehouse receipt pledge financing cooperation mechanism in the alliance formed between loan enterprises, commercial banks, e-commerce platforms, and logistics enterprises, by constructing a tripartite evolutionary game model, the game equilibrium strategy is then obtained, and the influencing factors of the cooperation mechanism are further simulated. It was found that in this tripartite evolutionary game, the stable strategy combination occurs when the loan enterprise chooses to repay on time, the platform alliance chooses to provide services, and the commercial bank chooses to continue to cooperate. However, heterogeneity exists in the influencing factors for the three-party selection strategy in the game, which is manifested in the fact that the higher the realization rate of the pledge, the more evolution is required in the selection strategy for loan enterprises to continue cooperating. The higher the information service fee, the higher the enthusiasm of the platform alliance in choosing to provide services. Credit levels, loan interest rates, and pledge realization rates are all important factors that affect the choice strategy of commercial banks.

scholarly journals Dampak Faktor Makroekonomi terhadap Non Performing Loan pada Kredit Produktif Bank Umum di Indonesia

2020 ◽  
Vol 3 (1) ◽  
pp. 1-28
Author(s):  
Alben Hernando ◽  
◽  
Elvaretta Miranda ◽  
Lauw Luvena Aileen Theodora ◽  
Yohanes B. Kadarusma ◽  
...  
Keyword(s):  
Exchange Rate ◽  
Regression Model ◽  
Interest Rates ◽  
Commercial Bank ◽  
Significant Relationship ◽  
Commercial Banks ◽  
Negative Relationship ◽  
Gdp Growth ◽  
Macroeconomic Variables ◽  
Loan Interest Rates

This study aims to find out the factors that affect non-performing loans of productive loans of commercial banks registeredin oritas Jasa Keuangan. This study examined the macroeconomic variables that affect productive credit NPLs. The sample used is a commercial bank in Indonesia, which is registered in OJK. Productive credit NPL data are taken quarterly from 2003 to 2017,and 56 observationsare obtained. The regression model used in this study is ARDL, with the help of processing Eviews 10 software. The macroeconomic variables tested in this research consist of GDP growth, loan interest rates growth, and IDR/ USD exchangerate growth. GDP growth and exchange rate growth has a negative relationship, while loan interest rates growth does not have a significant relationship with the dependent variable.

Strategi Pengelolaan Risiko dan Peningkatan Kualitas Pengelolaan Kas Negara

2017 ◽  
Vol 2 (2) ◽  
pp. 43-54
Author(s):  
Agung Mulyono
Keyword(s):  
Interest Rates ◽  
Financial Risk ◽  
Vector Autoregression ◽  
Secondary Market ◽  
Key Factors ◽  
Bond Price ◽  
Hedging Strategy ◽  
Foreign Loan ◽  
Term Operation ◽  
Loan Interest Rates

Cash management is  one of treasury’s main functions in which has a potential financial risk. A potential financial risk emerges when State Treasurer manages cash surplus and or/ shortages in order to maintain optimum liquidity. By applying Vector Autoregression (VAR) system on empirical data provided by Bank Indonesia and the Ministry of Finance of Indonesia, we found that currency value  flunctuation is a significant factor for repayment value of foreign loan. Interest rates and amount of government’s bond held by foreign investors are also variables impacted on government’s bond price movement in secondary market. Currency value  flunctuation and price of government’s bond in secondary market are the key factors that have to be considered by State Treasurer (BUN) in managing state’s money. Hedging strategy by using derivatif product is possible to be utilized by State Treasurer (BUN) due to it’s flexibility for short-term operation.   Abstrak Pengelolaan kas negara merupakan salah satu fungsi pokok perbendaharaan yang dalam proses pelaksanaannya menyimpan potensi berbagai risiko keuangan. Risiko keuangan, khususnya dalam investasi berpotensi muncul ketika Bendahara Umum Negara (BUN) melakukan kegiatan pengelolaan kelebihan dan/ kekurangan kas dalam rangka menjamin ketersediaan dan optimalisasi kas. Dengan menggunakan analisis Vector Autoregression (VAR) atas data empiris yang diperoleh dari Bank Indonesia dan Kementerian Keuangan Indonesia, penulis menemukan bahwa fluktuasi nilai tukar mata uang merupakan faktor yang signifikan terhadap besaran pembayaran utang luar negeri pemerintah. Tingkat suku bunga acuan dan pergerakan besaran kepemilikan SUN oleh investor asing juga merupakan variabel yang berpengaruh terhadap pergerakan harga SUN di pasar sekunder. Fluktuasi nilai tukar mata uang dan pergerakan harga SUN di pasar sekunder menjadi faktor penting dalam pelaksanaan investasi yang dilakukan BUN dalam rangka pengelolaan kelebihan dan/ kekurangan kas. Berdasarkan hasil tersebut, strategi pengelolaan risiko atau hedging dengan menggunakan produk-produk derivatif dalam pengelolaan kelebihan dan/ kekurangan kas jangka pendek – menengah sangat dimungkinkan karena sifat instrumen derivatif yang fleksibel.

The Effect of Repayment Through Payroll Deduction on Personal Loan Interest Rates

2006 ◽  
Author(s):  
Eduardo Augusto de Souza Rodrigues ◽  
Victorio Chu ◽  
Leonardo S. Alencar ◽  
Tony Takeda
Keyword(s):  
Interest Rates ◽  
Loan Interest Rates

scholarly journals Savings Level Determinants and Sustainability of Commercial Banks in Rwanda: A Case of I&M Bank Rwanda

2022 ◽  
Vol 6 (1) ◽  
pp. 10-27
Author(s):  
Aimable Nshimiyimana ◽  
◽  
Eugenia Nkechi Irechukwu ◽  
Keyword(s):  
Interest Rates ◽  
Commercial Banks ◽  
Financial Institution ◽  
Secondary Data ◽  
Income Level ◽  
Access To Credit ◽  
Credit Score ◽  
Descriptive Research ◽  
Specific Objective ◽  
Finance Department

The purpose of this study was to investigate the effect of savings level determinant on sustainability in I&M Rwanda. The specific objectives were to establish the effect of interest rate, income level and access to credit on the sustainability of I&M Bank. This study implemented a descriptive research design and utilized coefficient of correlation to assess the effect of each specific objective on the sustainability of the Bank. The population comprised of 12,057 including 12,050 customers and 7 staff of finance department of I&M Bank Rwanda. A sample size of 99 was calculated using Yamane (1967) simplified formula. To accomplish this aim, both primary and secondary data are used. The researcher used simple random and purposive sampling techniques. A questionnaire and interview have used to collect data. Quantitative data was obtained using questionnaire while a financial statement of I&M Bank covering 2016-2020 was used as secondary data. Descriptive and inferential statistical analysis showing mean, standard deviation, correlation and regression was used statistical Package for Social Sciences (SPSS) version 26.0 to analyze statistical information while content analysis used to analyze qualitative information. The findings and recommendations for this study addressed to the I & M Bank Rwanda, for decision-making and policies. The study found that interest rates, income level and access to credit have significant positive effect on sustainability of commercial banks in Rwanda at 78%, 90.5% and 92.9% respectively. The relationship among saving level determinants and sustainability of business bank was also determined to be linear with increase in get admission to credit score by means of clients. The researcher concluded that saving degree and get admission to credit volatility had more effect on sustainability of banks. The study endorsed that guideline to be installed vicinity to boom financial institution lending and ensure monitoring the same. Keywords: Savings Level Determinant, Sustainability, Commercial Banks, I&M Bank, Rwanda

scholarly journals PENGARUH VARIABEL MAKROEKONOMI TERHADAP DANA PIHAK KETIGA BANK UMUM SYARIAH DI INDONESIA

2020 ◽  
Vol 4 (1) ◽  
pp. 164
Author(s):  
Muhammad Dzulfaqori Jatnika
Keyword(s):  
Interest Rates ◽  
Commercial Banks ◽  
Random Effect ◽  
Random Effect Model ◽  
Least Square ◽  
Third Party ◽  
Ordinary Least Square ◽  
Effect Model ◽  
Per Capita ◽  
The Right

Tujuan penelitian ini  adalah menganalisis pengaruh faktor makroekonomi yaitu nilai tukar, inflasi, suku bunga, dan GDP per kapita terhadap dana pihak ketiga di bank umum Syariah. Penelitian ini merupakan penelitian kuantitatif dengan data sekunder yang berupa data panel. Teknik analisis yang digunakan adalah metode analisis linier berganda Ordinary Least Square (OLS). Hasil uji Hausman menunjukan model yang tepat dalam penelitian ini adalah random effect model. Semua variabel signifikan, variabel inflasi dan nilai tukar memiliki pengaruh positif sedangkan variabel suku bunga dan GDP per kapita memiliki pengaruh yang negatif terhadap dana pihak ketiga di bank umum Syariah. Hasil penelitian ini memiliki implikasi bagi para pelaku usaha perbankan untuk menentukan waktu yang tepat dalam menarik dan menyalurkan dana pihak ketiga dari masyarakat. Dan dapat menjadi acuan untuk mengeluarkan kebijakan terkait bisnisnya. Dan bagi peneliti selanjutnya dapat menjadi acuan untuk mengembangkan kembali penelitian berikutnya. Pada penelitian selanjutnya diharapkan dapat menambah variabel-variabel terkait lainnya selain variabel yang telah diteliti dalam penelitian ini. Kebaruan dalam penelitian ini adalah tambahan variabel yang mempengaruhi dana pihak ketiga dan juga tambahan sampel bank umum Syariah sehingga diharapkan penelitian ini lebih mendalam daripada penelitian sebelumnya.  The purpose of this study is to analyze the influence of macroeconomic factors, namely the exchange rate, inflation, interest rates, and GDP per capita on third party funds in Islamic commercial banks. This research is a quantitative study with secondary data in the form of panel data. The analysis technique used is the Ordinary Least Square (OLS) multiple linear analysis method. The Hausman test results showed the right model in this study was the random effect model. All variables are significant, inflation and exchange rates have a positive effect while interest rates and GDP per capita have a negative effect on third-party funds in Islamic commercial banks. The results of this study have implications for banking businesses to determine the right time in attracting and channelling third party funds from the public. And can be a reference for issuing policies related to business. And for further researchers can be a reference to develop further research. In the next research, it is expected to be able to add other related variables besides the variables that have been examined in this study. The novelty in this study is the addition of variables that affect third party funds and also additional samples of Islamic commercial banks so that this research is expected to be more in-depth than previous research.

scholarly journals High Lending Rates in Indonesia: Inflation Rates and Bank Inefficiencies

2020 ◽  
pp. 95-100
Author(s):  
Ari Christianti
Keyword(s):  
Interest Rates ◽  
Inflation Rate ◽  
Positive Impact ◽  
Panel Data Analysis ◽  
Consumer Credit ◽  
Commercial Banking ◽  
Working Capital ◽  
Operating Income ◽  
Lending Rates ◽  
Loan Interest Rates

Inefficient banking systems will affect the Indonesian economy resulting in a high lending rate structure which impacts the cost of capital in real sectors. This study aims to determine if the high lending rates in Indonesia are caused by the high inflation rate and bank inefficiencies. Using monthly panel data analysis from four categories of commercial banking in Indonesia for the period January 2009-December 2017, the results of the study show that operating expenses operating income (OEOI) and net interest margin (NIM) factors, as a measure of efficiency, have a positive impact on loan interest rates for working capital loans, investment loans and consumer loans. Furthermore, inflation rate has a positive effect on loan interest rates for working capital and investment loans only. However, this contrasts with consumer credit where the inflation rate has a negative effect on consumer credit rates. This might be attributed to the fact that interest rates for consumer credit consider default risk factors and high demand rather than inflation factors.

scholarly journals The Impact of Financial Deepening on Economic Growth in Nigeria (1981-2018)

2020 ◽  
Vol 17 ◽  
Keyword(s):  
Economic Growth ◽  
Private Sector ◽  
Interest Rates ◽  
Money Supply ◽  
Commercial Banks ◽  
Financial Sector ◽  
Financial Deepening ◽  
Growth Data ◽  
Main Research ◽  
The Impact

Different academics and experts have acknowledged that developing the financial sector positively impacts economic growth by increasing productivity, progress and national investment. Expanding the financial sector allows financial intermediaries to carry out functionalities of deploying, aggregating and directing a country’s savings into an investment which contributes to domestic progression. This research explores the effect of financial deepening on Nigeria’s growth for 38 years covering 1981- 2018. The main research goals were to investigate the linkages among time and savings deposit of commercial banks, money supply and credit to the private sector on the economy’s growth. Data was obtained from CBN Bulletin different issues and analyzed using Autoregressive Distributed Lag. From the result of analysis, we found out that long run relationship existed but no regressor was found to be significant. Credit to the private sector to GDP was inversely related to GDP growth whereas money supply to GDP had positive relations with economic growth rate, time and savings deposits in commercial banks negatively affected national growth. Policies favoring credit lending to the private sector should be encouraged by stakeholders in the economy, for instance, higher savings interest rates would encourage more savings. More importantly, policies should be enacted to make sure that savings are transmitted into productive investments that can yield financial deepness

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