Rating Agency Beliefs and Credit Market Distortions

2021 ◽  
Author(s):  
Chen Wang ◽  
Gregory Weitzner
Keyword(s):  
Credit Market ◽  
Rating Agency ◽  
Agency Beliefs

The Systemic Effects of Prudential Regulation Toughening:The Results of a Stress-test for Russian Banks

2012 ◽  
pp. 4-31 ◽  
Author(s):  
M. Mamonov ◽  
A. Pestova ◽  
O. Solntsev
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
Stress Test ◽  
Credit Market ◽  
Capital Adequacy ◽  
Government Support ◽  
Government Ownership ◽  
Prudential Regulation ◽  
The Government ◽  
The Stability

The stability of Russian banking sector is threatened by three negative tendencies - overheating of the credit market, significant decrease of banks capital adequacy ratios, and growing problems associated with banks lending to affiliated non-financial corporations. The co-existence of these processes reflects the crisis of the model of private investments in Russian banking sector, which was observed during the last 20 years. This paper analyzes the measures of the Bank of Russia undertaken to maintain the stability of the banking sector using the methodology of credit risk stress-testing. Based on this methodology we conclude that the Bank of Russias actions can prevent the overheating of the credit market, but they can also lead to undesirable effects: further expansion of the government ownership in Russian banking sector and substitution of domestic credit supply by cross-border corporate borrowings. The later weakens the competitive positions of Russian banks. We propose a set of measures to harmonize the prudential regulation of banks. Our suggestions rely on design and further implementation of the programs aimed at developing new markets for financial services provided by Russian banks to their corporate and retail customers. The estimated effects of proposed policy measures are both the increase in profitability and capitalization of Russian banks and the decrease of banks demand for government support.

“Land fever” and “Bankruptcy”: Social Problems in Hanoi’s Urbanizing Peri-urban Communities

2019 ◽  
Vol 5 (5) ◽  
pp. 550-562
Keyword(s):  
Rural Communities ◽  
Urban Communities ◽  
Agricultural Production ◽  
Social Problems ◽  
Social Issues ◽  
Field Research ◽  
Credit Market ◽  
Urbanization Process ◽  
Impact Of Urbanization ◽  
The Impact

Drawn upon field research in two peri-urban villages of Hanoi in 2014 and short re-visits recently, the research examines the widespread of gambling and other social issues in Hanoi’s urbanizing peri-urban communities which happened concurrently with the phenomenon of “land fever,” and at the time local villagers received compensation from land appropriation. The article aims to understand the impact of urbanization on these communities and the interface between urbanization and the increase of social problems. It argues that gambling, drug use, and other social problems have been existing in Vietnamese rural communities long before; however, when urbanization came, some people have higher chances to engage in these activities. Those are villagers who want to transform quickly into entrepreneurs or bosses by joining the “black credit” market and gambling. Together with middle-aged and old farmers who greatly relied on agricultural production and face difficulties in transforming their occupation, they formed the group of losers in the urbanization process. Received 6th January 2019; Revised 26th April 2019; Accepted 15th May 2019

Credit Market Depth and Income Inequality in Vietnam: A Panel-Data Analysis

2016 ◽  
pp. 5-18
Author(s):  
Hoi Le Quoc ◽  
Hoi Chu Minh
Keyword(s):  
Data Analysis ◽  
Panel Data ◽  
Income Inequality ◽  
Financial Development ◽  
Inflection Point ◽  
Panel Data Analysis ◽  
Credit Market ◽  
Method Of Moment ◽  
Market Depth ◽  
Generalized Method Of Moment

Financial development could exert various effects on income distribution of a country. By employing Generalized Method of Moment, this paper aims at examining the impacts of credit market depth, one of most used financial development barometers, on income inequality in Vietnam. The empirical findings show that expanding credit market in the country could lead to higher income inequality. We have not found evidence that supports the hypothesis of an inverted U-shaped relation ever introduced by Greenwood and Jovanovich, although this hypothesis may still hold in a sense that Vietnam has not reached to the inflection point to generate such a curve alike.

Determinants of Interlinked Credit Contracts in Informal Agricultural Credit Market

2012 ◽  
Vol 3 (4) ◽  
pp. 100-104
Author(s):  
DR.S.GANDHIMATH DR.S.GANDHIMATH ◽  
◽  
G.Mookambigai G.Mookambigai
Keyword(s):  
Credit Market ◽  
Agricultural Credit ◽  
Credit Contracts

Non-Performing Loans, Banking System and Macroeconomy

2018 ◽  
Vol 63 (2) ◽  
pp. 67-86
Author(s):  
Akinola Morakinyo ◽  
Colette Muller ◽  
Mabutho Sibanda
Keyword(s):  
Exchange Rate ◽  
Serial Correlation ◽  
Banking System ◽  
Impulse Response Function ◽  
Credit Market ◽  
Variance Decomposition ◽  
Structural Var ◽  
Long Run ◽  
Correlation Tests ◽  
The Exchange Rate

Abstract The study builds on previous studies of the consequences of non-performing loans on an economy. Using a seven-by-seven matrix in the impulse response function (IRF) of the structural autoregressive model, we find a long-run impact of an impulse to non-performing loans on the banking system and the macroeconomy in Nigeria. Conversely, non-performing loans also respond to the innovation of all macro-banking variables aside from the exchange rate and the growth rate to GDP. Also, the level of non-performing loans grows in influence in relation to the changes to the exchange rate using the variance decomposition tool of Structural VAR. Hence, a prominent role is assigned to the level of NPLs in linking the friction in the credit market to the susceptibility of both the banking system and the macroeconomy. This study passes the serial correlation tests and the three tests of normality.

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