Deprived Sector Lending and Non-Performing Loans in Nepal

This study investigates the empirical impact of deprived sector lending on the nonperforming loans of commercial banks in Nepal using secondary data collected from 27 commercial banks from the fiscal year 2009 to 2018 with 262 observations. The study employed the OLS regression method for the robustness test of the result. The study establishes empirical relation between deprived sector lending and nonperforming loan of banks which was the major motivation of this study. The basic regression result shows that beta coefficient of DSL is negative which indicates higher the ratio of deprived sector lending, the lower would be the NPL and vice-versa. Similarly, this study also examines the DSL movement's impact on NPL. The result shows that the beta coefficient of ∆DSL is significantly negative with ∆NPL. This indicates that the higher the growth of DSL, the lower would be NPL growth and vice-versa. This shows that the influence of DSL is very low as per this empirical result. Overall, the study shows there is an inverse relationship between deprived sector lending and nonperforming loan of banks. The result indicates that the remark of commercial bank’s on the deprived sector lending policy of NRB is not true. The operational cost might increase with direct lending to deprive sector and that leads to decrease in the bank’s overall profit but not increases their NPL.

Across the Universe: Policy Support for Employment and Revenue in the Pandemic Recession

Using data from 14 government sources, we develop comprehensive estimates of U.S. economic activity by sector, legal form of organization, and firm size to characterize how four government direct lending programs—the Paycheck Protection Program, the Main Street Lending Program, the Corporate Credit Facilities, and the Municipal Lending Facilities—related to these classes of economic activity in the United States. The classes targeted by these programs are vast—accounting for 97 percent of total U.S. employment—though entity-specific financial criteria limited coverage within specific programs. We relate our estimates to those from timely alternative data sources, which do not typically cover the majority of the economic universe.

Across the Universe: Policy Support for Employment and Revenue in the Pandemic Recession

Using data from 14 government sources, we develop comprehensive estimates of US economic activity by sector, legal form of organization, and firm size to characterize how four government direct-lending programs--the Paycheck Protection Program, Main Street Lending Program, Corporate Credit Facilities, and Municipal Liquidity Facility--relate to these classes of economic activity in the United States. The classes targeted by these programs are vast--accounting for 97 percent of total US employment--though entity-specific financial criteria limit coverage within specific programs. These programs notionally cover a far larger universe than what was targeted by analogous Great Recession-era lending policies.

Across the Universe: Policy Support for Employment and Revenue in the Pandemic Recession

Using data from 14 government sources, we develop comprehensive estimates of U.S. economic activity by sector, legal form of organization, and firm size to characterize how four government direct lending programs—the Paycheck Protection Program, the Main Street Lending Program, the Corporate Credit Facilities, and the Municipal Lending Facilities—relate to these classes of economic activity in the United States. The classes targeted by these programs are vast—accounting for 97 percent of total U.S. employment—though entityspecific financial criteria limit coverage within specific programs. These programs notionally cover a far larger universe than what was targeted by analogous Great Recession-era lending policies. We relate our estimates to those from timely alternative data sources, which do not typically cover the majority of the economic universe.

Rwanda

Until recently, the Rwandan government had not formally adopted global financial standards beyond Basel I. However, in 2015, the government’s stance changed and politicians made a formal commitment to the rapid adoption and implementation of Basel II and III. This exuberance for adopting global standards is puzzling given that Rwanda’s financial sector remains largely underdeveloped and the government is aiming to become a developmental state. The motivations behind this policy shift are to reduce risk in the financial sector, encourage harmonization of financial sector regulation across the East African Community (EAC), and develop a service-based economy, including by making Kigali a financial hub. Yet ambitious fast-paced policy-driven adoption in Rwanda conflicts with developmental state goals of direct lending. Adoption is beset with potential problems, with uncritical adoption of global financial standards likely to create difficulties for the domestic banking sector in the short-to-medium term.