Post Merger Changes in Riskiness of Bank Loan Portfolios

2011 ◽  
Author(s):  
Alan Gart ◽  
Morris Knapp
Keyword(s):  
Bank Loan ◽  
Loan Portfolios

scholarly journals The development of bank lending to corporate clients in Ukraine in times of economic cycles

2017 ◽  
pp. 72-87 ◽  
Author(s):  
Yaroslav Chaikovskyi
Keyword(s):  
Interest Rates ◽  
Economic Activity ◽  
Bank Lending ◽  
Bank Loans ◽  
Bank Loan ◽  
Economic Activities ◽  
Economic Cycles ◽  
Loan Portfolios ◽  
Major Factors ◽  
Corporate Clients

The article considers bank lending to corporate clients in Ukraine overcoming the issues related to economic cycles. The dynamics of gross domestic product, total assets, and credit portfolios of Ukraine’s banks over the period between 2012 and 2016 is analyzed. The changes in the composition of bank loans to non-financial corporations are analyzed in terms of scheduled payments, forms of currencies, target allocation and economic activities. Additionally, the dynamics and composition of residents’ deposits mobilized by deposit-taking corporations are considered in terms of scheduled payments over the above period. The major factors that hinder the recovery of bank lending to corporate clients are identified. It is highlighted that the main obstacles to the development of banking lending to corporate clients in Ukraine in times of economic cycles are as follows: high interest rates; a significant percentage of unprofitable enterprises and loan arrears in bank loan portfolios; an increase of non-performing loans (NPL); the fact that banks, having sufficient liquidity for lending to economy-boosting projects, prefer to purchase government securities; corrupt practices of granting loans to affiliated companies (insider loans). The percentage of unprofitable enterprises in Ukraine in 2016 is determined and analyzed by type of economic activity. Based on the analysis performed, some assumptions are made about the trends of the development of bank lending to corporate clients in Ukraine and proposals on further harmonization of bank lending to corporate clients in times of economic cycles are set out.

Does focus strategy work? A study of bank loan portfolios in Indonesia

2019 ◽  
Vol 13 (3) ◽  
pp. 450-471
Author(s):  
Apriani Dorkas Rambu Atahau ◽  
Tom Cronje
Keyword(s):  
Bank Lending ◽  
Bank Loan ◽  
Content Type ◽  
Loan Portfolios ◽  
Bank Ownership ◽  
Lending Policy ◽  
Focus Strategy ◽  
The Impact ◽  
Positive Effect ◽  
Ownership Types

PurposeThe purpose of this paper is to determine the impact of loan concentration on the returns of Indonesian banks and examines whether bank ownership types affect the relationship between concentration and returns.Design/methodology/approachThis research uses heuristic measures of concentration: The Hirschman–Herfindahl index and Deviation from Aggregated Averages are applied to Indonesian banks across all sectors. The data covers the pre and post global financial crises periods from 2003-2011 for 109 commercial banks in Indonesia. Panel feasible generalised least squares analysis was applied.FindingsThe findings show that loan concentration increases bank returns. The positive effect of concentration on returns tends to be more significant for domestic-owned banks. In addition, the interaction effect shows that the positive effect of concentration on returns is less for foreign-owned banks.Research limitations/implicationsThe Indonesian central bank changes to the reporting format of sectoral loan allocation by banks since 2012 in terms of the Indonesian Banking Statistics Details of Enhancement matrix requires separate data analysis for 2012 onwards. The findings of this paper could be enhanced by more detailed data like interest rate expenses and bank level sectoral non-performing loans data.Practical implicationsThe findings suggest that a focus strategy provides better returns. Moreover, bank ownership types is an important factor to consider when setting a bank lending policy.Originality/valueThis paper is among the few studies where different measures of loan concentration in combination with measures of return are applied in Indonesia as an emerging Asian country. The research also provides evidence of the impact of concentration on the interest earnings of the loan portfolios of banks in addition to return on assets and return on equity that are generally applied as measures of return in previous research.

scholarly journals Does Diversification Improve the Performance of German Banks? Evidence from Individual Bank Loan Portfolios

2007 ◽  
Vol 32 (3) ◽  
pp. 123-140 ◽  
Author(s):  
Evelyn Hayden ◽  
Daniel Porath ◽  
Natalja v. Westernhagen
Keyword(s):  
Bank Loan ◽  
Loan Portfolios

scholarly journals Bank loan portfolios and the monetary transmission mechanism

2007 ◽  
Vol 54 (3) ◽  
pp. 904-924 ◽  
Author(s):  
Wouter J. den Haan ◽  
Steven W. Sumner ◽  
Guy M. Yamashiro
Keyword(s):  
Transmission Mechanism ◽  
Bank Loan ◽  
Monetary Transmission ◽  
Monetary Transmission Mechanism ◽  
Loan Portfolios
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