Genossenschaftsbanken – Solides Kreditwachstum während der Coronapandemie

Kleine und mittlere Unternehmen in Deutschland haben auch während der Coronapandemie einen sehr guten Zugang zur Kreditfinanzierung. Hierauf deuten sowohl Umfragen unter Unternehmen als auch unter Banken hin. Der sehr gute Kreditzugang manifestiert sich in einem kräftigen Kreditwachstum während der Krise. Insbesondere die genossenschaftliche Kreditvergabe wächst seit vielen Jahren, auch während Rezessionen, mit robusten Raten. Im Rahmen eines Ungleichgewichtsmodells zeigen wir, dass die Kreditvergabe genossenschaftlicher Banken in der Coronapandemie durch die Nachfrage bestimmt wurde. Es gibt keine Anzeichen für angebotsseitige Beschränkungen der genossenschaftlichen Kreditvergabe. German small and medium corporations had sufficiently access to bank loans during the Corona Pandemic. This is the result of surveys conducted among corporations and banks. A strong growth of bank loans points at generous credit provisions by German banks. Especially bank lending by cooperative banks has been remarkably robust in recent years and has expanded during the Great Recession as well as the European Debt Crisis. In a disequilibrium model, we show that cooperative banks’ loan volumes during the Corona Pandemic have been determined by the demand side. There is no evidence for supply side restrictions.

Financial Stability Implications of Stress Testing for Risk Taking and Credit Growth

This paper examined the literature on financial stability implication of stress testing for risk-taking and credit growth in banks. Macro prudential considered one of the most stress testing tools by Applying countercyclical Macro prudential tools to build up capital buffers in good times that can be run down during bad times. But to improve timing, monitories authorities may need to develop a comprehensive framework to monitor Macro prudential conditions and establish appropriate warning and trigger thresholds. Regarding scope, they examine the entire financial system. This entity contributes to fire sales whose default has follow-on effects, or which can exacerbate a credit crunch that is included. Liability Considerations contain a Scale of wholesale funding that is run-prone is paramount. Capital adequacy depends on the health of the overall financial system. For asset Considerations, the test indicates whether the financial system is vulnerable to deleveraging that might amplify adverse shocks, at the end authorities' development guidance about whether to close a bank and when to sell its assets to maximize taxpayer recovery. We have concluded that the financial stability implications of stress tests for risk-taking and credit growth among banks are the following: A reduction in credit is a feature on stress tests. Post-crisis reforms traded the expectation of lower credit growth for reducing the probability that the larger banks would fail. This has a high negative impact on the economy. Higher capital requirements for the larger banks have prompted a reduction in the supply of credit, especially to riskier borrowers. Smaller banks have increased their share of local market-wide lending, and larger businesses have seen quite generous credit availability in bond and leveraged loan markets. Consider the structure of the financial system and its complexity long the levels of economic integration and openness.

Simplifying credit scoring rules using LVQ + PSO

Purpose One of the key elements in the banking industry relies on the appropriate selection of customers. To manage credit risk, banks dedicate special efforts to classify customers according to their risk. The usual decision-making process consists of gathering personal and financial information about the borrower. Processing this information can be time-consuming, and presents some difficulties because of the heterogeneous structure of data. Design/methodology/approach This paper presents an alternative method that is able to generate rules that work not only on numerical attributes but also on nominal ones. The key feature of this method, called learning vector quantization and particle swarm optimization (LVQ + PSO), is the finding of a reduced set of classifying rules. This is possible because of the combination of a competitive neural network with an optimization technique. Findings These rules constitute a predictive model for credit risk approval. The reduced quantity of rules makes this method useful for credit officers aiming to make decisions about granting a credit. It also could act as an orientation for borrower’s self evaluation about her/his creditworthiness. Research limitations/implications In spite of the fact that conducted tests showed no evidence of dependence between results and the initial size of the LVQ network, it is considered desirable to repeat the measurements using an LVQ network of minimum size and a version of variable population PSO to adequately explore the solution space in the future. Practical implications In the past decades, there has been an increase in consumer credit. Retail banking is a growing industry. Not only has there been a boom in credit card memberships, specially in emerging economies, but also an increase in small consumption credits. For example, it is very common in emerging economies that families buy home appliances on installments. In those countries, the association of a home appliance shop with a financial institution is usual, to provide customers with quick-decision credit line facilities. The existence of such a financial instrument aids to boost sales. This association generates conflict of interests. On one hand, the home appliance shop wants to sell products to all customers. Therefore, it is in its best interest to promote a generous credit policy. On the other hand, the financial institution wants to maximize the revenue from credits, leading to a strict surveillance of loan losses. Having a fair and transparent credit-granting policy favors a good business relationship between home appliances shops and financial institutions. One way of developing such a policy is to construct objective rules to decide to grant or deny a credit application. Social implications Better credit decision rules generate enhanced risk sharing. In addition, it improves transparency in credit acceptance decisions, giving less room to arbitrary decisions. Originality/value This study develops a new method that combines a competitive neural network and an optimization technique. It was applied to a real database of a financial institution in a developing country.

Martial

Martial presents a critical problem. On the one hand, there was his undeniable popularity and literary influence on European literature from the Renaissance to at least the end of the seventeenth century. On the other hand, there is the obvious embarrassment he presents to modern literary historians.The two viewpoints are easily contrasted. Pliny the Younger in the famous letter written about 102 had expressed doubts about Martial's literary survival, but gave him generous credit for his talent, sharp wit, candour, and mordancy. (Erat homo ingeniosus acutus acer, et qui plurimum inscribendo et satis haberet etfellis, nec candoris minus, Ep. 3.21.1.) Nevertheless Martial's work survived the wreck of late Antiquity and the Middle Ages handsomely, and with the Renaissance, he came into his own as a poet. Angelo Poliziano described him as ingeniosissimus, ‘very talented’, and argutissimus, ‘clever’ (Miscellan. 6); such judgements were echoed by Jovianus Pontanus (De sermone 3.18) and Julius Caesar Scaliger, who claimed that many of his epigrams were divina, praising their sermonis castitas, ‘purity of speech’ (Poet. 3.126). Festivissimus, ‘most witty’, and lepidissimus, ‘charming’, were the adjectives used by Adrianus Turnebus (Advers. 8.4; 13.19). Only a few critics, such as the censorious Andrea Navigero and Raffaele Maffei (Volaterranus), objected to him on moral grounds. His reception among English poets was equally enthusiastic. Sir John Harington stated firmly ‘that of all poems, the Epigram is the pleasantest, and of all that write epigram, Martial is counted the wittiest.’