• The Journal of Asian Finance, Economics and Business
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• v.9 no.8
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• pp.145-155
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• 2022

Since 2014, the IFRS 9 has been the focus of the attention of many scholars across disciplines. The futuristic prediction of bank loan provision via a flexible ECL model has been observed as a game changer from the prior models offered in IAS 39. This study has two objectives; the first is to examine the impact on loan loss provisions (LLP), nonperforming loans (NPL), and the impairment loan losses (ILL) after the IFRS 9 in gulf banks. The second is to capture any variation in LLP, NPL, and ILL before and after IFRS9. The study used the two-way fixed effect model (TWFE) estimation and the DiD approach to attain its objectives. 54 gulf banks were selected from the periods between 2012 and 2020. The results indicate that LLP has significantly increased after the transition to IFRS 9, while the NPL has significantly decreased. The results did not capture a significant change in ILL after IFRS9 implementation. The results also indicate more consistency in LLP and NPL reporting after implementing the ECL model adopted in IFRS9. The study concluded that ECL model outcomes are in tandem with prior observation worldwide and pointed out some improvement opportunities for the future.

• The Journal of Asian Finance, Economics and Business
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• v.10 no.1
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• pp.181-187
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• 2023

The study aimed to study the effect of the inflation rate, the real domestic product, the interbank lending interest rate, and the total deposits on credit facilities in Jordan for 2012-2021 through quarterly data. The study adopted the ARDL model. The study used the time series analysis method, as the study tests the stationarity of the time series. The results showed that the impact of inflation on the total credit facilities was negative. In contrast, the impact of each of the total deposits, real GDP, and the interest rate of interbank loans on the total credit facilities was positive and significant. The study recommended the need for the banking sector in Jordan to develop risk management mechanisms in a way that allows it to adapt to economic cycles and crises by conducting stress tests and developing scenarios that ensure the formation of sufficient provisions to meet emergencies. The study also recommended that the macroeconomic policy should be based on creating a stable macroeconomic environment that allows the efficient employment of resources in all economic sectors in a way that achieves high economic growth rates, which contributes to the promotion of economic recovery and is reflected in income. Hence, individuals have a greater ability to repay loans.

• The Journal of Asian Finance, Economics and Business
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• v.10 no.1
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• pp.1-8
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• 2023

The banking industry regulators have imposed on commercial banks to maintain a certain level of liquidity to ensure that they can meet their obligations to the depositors and third parties. This study examines the factors influencing liquidity creation among commercial banks in Uzbekistan. Specifically, this study examines three internal factors namely, risk assets, deposits, and inter-bank loans on the creation of liquidity in commercial banks of Uzbekistan. This study uses content analysis on financial reports of 33 commercial banks in Uzbekistan over 21 years. This study shows all the factors chosen in this study significantly influence liquidity creation among the commercial banks in Uzbekistan. While deposits and inter-bank loans significantly and positively influence liquidity creation, this study shows that risk assets significantly and negatively influence liquidity creation. Further analysis shows that these three factors contribute to a 92.4% variance in liquidity creation among commercial banks in Uzbekistan. The findings of this study provide valuable insights to the stakeholders in the banking industry on the factors influencing liquidity creation in banks. In addition, this study adds to the existing literature by providing insight into the internal factors' role in influencing liquidity creation in the context of an emerging economy.

• Korean Journal of Fisheries and Aquatic Sciences
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• v.56 no.3
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• pp.341-346
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• 2023

This study aimed to suggest an alternative income generation (AIG) for local artisanal fisheries communities in the southern coastal area of Bangladesh, which is vulnerable to climate change. To analyze the problems of local artisanal fisheries caused by climate change, field surveys and in-depth interviews with fishermen and government officials were conducted. Livelihood risk factor (LRF) in the marine fishing sector included reduction of fishing days and fish production and damage to fishing vessels and fishing gear due to cyclone and sea-level rise. LRF in the aquaculture sector included cultured fish escape, reduction of aquaculture production, and water pollution due to Monsoon flood. A common challenge for two sectors was high interest rate on commercial loans. Small-scale tank aquaculture is recommended as AIG for securing income of artisanal fisheries communities. In the early stages of dissemination of small-scale tank aquaculture technology, it is necessary to prevent fishermen from struggling to repay high-interest rate loans through technology transfer and facility support by official development assistance. The aquaculture training center, along with the technical education, will also contribute toward expansion of local distribution network and marketing support to establish a value chain for local artisanal fisheries communities.

• Korean Journal of Agricultural Science
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• v.49 no.4
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• pp.813-821
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• 2022

The Livestock Raw Material Purchase Fund is a policy to increase the export of livestock products by providing loans to exporters of livestock products (including byproducts). The policy started in 2015 and the annual budget is about 26 billion won. However, a quantitative evaluation of policy effects has not yet been made. Therefore, in this study, the economic surplus of the policy was analyzed using the equilibrium displacement model (EDM). From the results of the welfare analysis, from 2016 to 2019, producer surplus in the chicken and duck market increased by KRW 70.9 billion, while consumer surplus decreased by KRW 70 billion. In other words, the total economic surplus of the chicken and duck market increased by about one billion won during the same period due to the increase in export demand according to the policy. Therefore, the Livestock Raw Material Purchase Fund can be viewed as a policy to maintain and increase export demand for export livestock products and to improve the economic surplus of the livestock product market. Also, since the policy is based on loans, it does not place a burden on the government's finances. Therefore, this policy should continue in the future.

• KDI Journal of Economic Policy
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• v.25 no.1
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• pp.99-145
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• 2003

Quasi-fiscal activities (QFAs) refer to those activities that public corporations carry out to achieve policy objectives of the government. QFAs often lead to the understatement of the government involvement in the economy and the overstatement of its financial balance, thereby lowering fiscal transparency and hiding fiscal risks. Central banks, as public corporations, perform various QFAs in many countries. I define QFAs in this case as those activities that are not directly related to the intrinsic function of central banks, whose responsibility lies in the administration of monetary policy and the provision of banking services for the government and commercial banks. In Korea, the Bank of Korea (BOK) has been an active source of QFAs. Of particular importance are the policy loans to commercial banks to promote their lending to small- and medium-sized enterprises and others. The outstanding stock of policy loans increased rapidly in the aftermath of the recent economic crisis, and stood at 7.6 trillion won (20 percent of the reserve money) at the end of 2002. Another important QFA by BOK stems from the transfer of part of its profits to the central government. The accumulated transfer during 1998-2002 amounted to 9.9 trillion won. My calculation shows that if these and other QFAs had been carried out by the government as explicit fiscal activities, the consolidated central government financial balance would have been below the actual balance by about 0.5 percent of GDP in each year since the economic crisis. It is suggested that the QFAs by BOK be reduced in coming years not only to enhance fiscal transparency but also to expand the flexibility of BOK's reserve management. Abolishing policy loans and minimizing transfers to the government would be the first step in this direction. BOK should also consider paying interest on the government deposit held in BOK.

• The Journal of the Korea Contents Association
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• v.18 no.4
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• pp.416-427
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• 2018

As the loan size of real estate PF is huge, its market ripple effect gets bigger when overdue occurs. Accordingly, the management of the delinquency rate and macroeconomic analysis are required. As the preceding research mainly proceeded with microeconomic analysis through the real estate PF data of individual banks to evaluate importance of list or analyzed core factors for delinquency, it lacked research on comprehensive real estate PF size. In order to overcome the limitations of such data, this research studied real estate PF delinquency rate of the entire market and effect relationship by the size. The research utilized the size of real estate PF loans, money supply, interest rate, consumer price index(CPI), and GDP data. Also, it applied the first model of VECM as linear relationship between at least two or more variables, following the result of co-integration test. As a result of Granger-causality test, the real estate PF loans delinquency rate is influenced by their loan size, and as a result of impulse response analysis, the interest rate is shown to be affecting delinquency rate the most. Interest rate could risesomeday and aggravate the delinquency rate of real estate PF. Also, risk exposure could be serious as the loan size increases.Therefore, the management of real estate PF delinquency rate requires continuous monitoring, tracking and observing issued loans from a macro point of view. The plans to prevent delinquency will be necessary.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.18 no.5
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• pp.245-251
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• 2017

The purpose of the study is to empirically investigate how the higher allowance ratio for bank loans affects the cost of equity using Korean banks from 2002- 2015. First of all, we analyzed the impact of the higher allowance ratio on the cost of equity for Korean banks. Secondly, from the perspective of governance structure, we analyzed the existence of different impacts whether banks were affiliated with financial holding companies. The results showed an increasing impact of higher allowance ratio on the cost of equity for Korean banks. Also, we found these impacts differ whether the banks are affiliated with financial holding companies. The results indicate that the burden of higher allowance ratios for bank loans may provide negative impacts on capital markets. The higher the allowance ratio, which means the greater risk for banks, may help to increase the cost of equity concerning Korean banks.

• Journal of Korea Society of Industrial Information Systems
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• v.17 no.2
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• pp.81-94
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• 2012

On December 11, 2001, China joined the WTO and became one of the member countries and the Chinese financial markets had to be open in 5 years. So, the Chinese government transformed national commercial banks into joint-stock banks. The purpose of this paper is to investigate the validity of this decision by the Chinese government. In order to measure the efficiency of banks, the directional distance function (DDF) methodology is used, which analyzes whether a bad output exists in the outputs. In the empirical analysis, the number of staffs, the fixed assets, and the equity capital are used as inputs, while the loans and the non-performing loans ratio are used as a good output and a bad output, respectively. The non-performing loans ratio is included in output since it could affect the efficiency of banks. If it isn't considered in the analysis, a distortion might occur in analyzing the efficiency of banks. The results show that the efficiency of the major commercial banks was improved, and that the efficiency of joint-stocks banks was higher for 2002-2003 while the efficiency of national commercial banks was higher for 2004-2006. It was due mainly to the foreign exchanges reserve funds injected into national commercial banks by the Chinese Ministry of Finance, and as a result bad assets were eliminated.

• 한국사회정책
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• v.24 no.4
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• pp.3-29
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• 2017

The study checked whether the trade-off relationship between the home ownerhip and welfare by Kemeny and Castles was still valid in four welfare regimes, and analysed the factors of change and stability on rate of home ownership between social democratic states and southern european states. Based on the results of the study, the relationship between housing ownership and public expenditure was confirmed only in the liberal welfare regime and in the conservative welfare regime, as evidenced by the 2014 data collection. Second, social democratic states have dramatically increased housing mortgage loans and showed signs of housing commodification but southern european states have showed pre commodification of housing, maintained comparatively whole home ownership and low mortgage loans. Third, social democratic states has resulted in a rise in housing demand and housing prices, through reduced new housing and social rented housing construction, home owenership friendly taxation and generous lending policies, but southern european states have maintained a stable housing demand and housing prices thanks to the rich housing stocks, extended family, self provision and self promotion by close relatives, and intergenerational inheritance and transfers of housing. Although sequence of the equity ownership and welfare are still unclear, it is not a rational alternatives to induce housing ownership through large mortgage loans.