scholarly journals Bank Lending Policy, Credit Scoring and the Survival of Loans

2004 ◽  
Author(s):  
Kasper F. Roszbach
Keyword(s):  
Credit Scoring ◽  
Bank Lending ◽  
Lending Policy

Credit-scoring and bank lending policy in consumer loans

2013 ◽  
Vol 1 (1) ◽  
pp. 90 ◽  
Author(s):  
Maria Ganopoulou ◽  
Fotini Giapoutzi ◽  
Kyriaki Kosmidou ◽  
Theodoros Moysiadis
Keyword(s):  
Credit Scoring ◽  
Bank Lending ◽  
Consumer Loans ◽  
Lending Policy

scholarly journals Bank lending policy, credit scoring and value-at-risk

2003 ◽  
Vol 27 (4) ◽  
pp. 615-633 ◽  
Author(s):  
Tor Jacobson ◽  
Kasper Roszbach
Keyword(s):  
At Risk ◽  
Value At Risk ◽  
Credit Scoring ◽  
Bank Lending ◽  
Lending Policy

scholarly journals Credit Scoring in SME Asset-Backed Securities: An Italian Case Study

2019 ◽  
Vol 12 (2) ◽  
pp. 89 ◽  
Author(s):  
Andrea Bedin ◽  
Monica Billio ◽  
Michele Costola ◽  
Loriana Pelizzon
Keyword(s):  
Small And Medium Enterprises ◽  
Credit Scoring ◽  
Bank Lending ◽  
Default Probability ◽  
Loss Distribution ◽  
Recovery Rates ◽  
Italian Case ◽  
Level Data ◽  
Asset Backed Securities ◽  
Medium Enterprises

We investigate the default probability, recovery rates and loss distribution of a portfolio of securitised loans granted to Italian small and medium enterprises (SMEs). To this end, we use loan level data information provided by the European DataWarehouse platform and employ a logistic regression to estimate the company default probability. We include loan-level default probabilities and recovery rates to estimate the loss distribution of the underlying assets. We find that bank securitised loans are less risky, compared to the average bank lending to small and medium enterprises.

New Nigerian bank lending policy may disappoint

2019 ◽  
Keyword(s):  
Commercial Bank ◽  
Commercial Banks ◽  
Slow Growth ◽  
Bank Lending ◽  
Treasury Bills ◽  
Content Type ◽  
Consumer Lending ◽  
Lending Policy ◽  
Policy Measures ◽  
Nigerian Banking

Subject Nigerian banking innovations. Significance After complaints over the slow growth of commercial bank lending specifically to preferred sectors, the Central Bank of Nigeria (CBN) recently proposed a range of new policy measures. This includes a new minimum loan-to-deposit ratio (LDR) target of 60% for all commercial banks, and that loans extended to small and medium-sized enterprises (SMEs), retail, mortgage and consumer lending be weighted at 150%. Banks are required to conform to the new requirements by September 30. Impacts Liquidity outflows from banks that opt to drop expensive deposits may lead to pressure on the naira. The interplay of the new LDR policy and CBN Treasury Bills' maturities will prompt uncertainty in currency and debt markets. Newly created banks are even more unlikely to be able to expand their loan book quickly enough to meet the new requirements.

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 Size of Banks as a Factor Which Impacts the Efficiency of the Bank Lending Channel

e-Finanse ◽  
2020 ◽  
Vol 16 (1) ◽  
pp. 36-44 ◽  
Author(s):  
Filip Świtała ◽  
Iwona Kowalska ◽  
Karolina Malajkat
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Banking Sector ◽  
Bank Lending ◽  
Annual Data ◽  
Bank Lending Channel ◽  
Lending Channel ◽  
Lending Policy ◽  
Cooperative Banks ◽  
The Impact

AbstractIn most economies the banking sector plays the major role in the financial system. Therefore, it is of great importance to analyse and understand the mechanism of transmission of monetary policy and its impact on the banking sector. One of the possible repercussions of changing the level of official interest rates is the ability to influence the size of bank lending, by means of the bank lending channel. The key aspect our research is a thorough understanding of the functioning of the bank lending channel, with the main goal of this study being an examination of the efficiency of monetary policy transmission through the bank lending channel depending on the size of banks in the sector. This paper examines the abovementioned relation using annual data from 1995-2015 by 1709 commercial and cooperative banks from 27 EU countries and analyzing them in various econometric models. The results indicate that there is a positive impact of a bank’s size on loan growth (defined as the bank size increases, the impact of changes in interest rates in the bank’s lending policy is getting smaller), however, interaction between the variables of size and the interest rate, was proved to be insignificant (in the group of all analysed banks, as well as in commercial and cooperative banks separately).

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