• Title/Summary/Keyword: Micro credit

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Determinants of Accessibility to Fintech Lending: A Case Study of Micro and Small Enterprises (MSEs) in Indonesia

  • SAPTIA, Yeni;NUGROHO, Agus Eko;SOEKARNI, Muhammad;ERMAWATI, Tuti;SYAMSULBAHRI, Darwin;ASTUTY, Ernany Dwi;SUARDI, Ikval;YULIANA, Retno Rizki Dini
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.10
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    • pp.129-138
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    • 2021
  • Several studies have revealed that information on borrower characteristics plays an important factor in approving their credit requests. Though the extent to which such characteritics are also applicable to the case of fintech lending remain uncertain. The aim of this study is, thus, to investigate the determinant factors that influence MSEs in obtaining credit through fintech lending. Here, we emphasize virtual trust in fintech lending encompasing the dimension of social network, economic attributes, and risk perception based on several indicators that are used as proxies. Primary data used in the study was gathered from an online survey to the respondents of MSEs in Java. The result of the study indicates that determinants of MSEs in obtaining credit from lender through fintech lending are statistically influenced by internet usage activities, borrowing history, loan utilization, annuity payment system, completeness of credit requirement documents and compatibility of loan size with the business need. These factors have a significant effect on credit approval because they can generate virtual trust of fintech lender to MSEs as potential borrowers. It concludes that the probability of obtaining fintech loans in accordance with their expectations are influenced by the dimensions of social network, economic attributes and risk perception.

Response on New Credit Program In Indonesia: An Asymmetric Information Perspective

  • PURWONO, Rudi;NUGROHO, Ris Yuwono Yudo;MUBIN, M. Khoerul
    • The Journal of Asian Finance, Economics and Business
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    • v.6 no.2
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    • pp.33-44
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    • 2019
  • The Indonesian government launched a new people's business credit program as part of a package of economic policy and deregulation. The interest rate is set lower than the average of the current loan interest rates, especially when compared with rural bank interest rates. To capture the social spatial aspects, quota sampling is applied to ten areas that divided based on the social culture. Further, the method utilized in this research is logit models, which designed to analyse the determinants of asymmetric information particularly on the rural bank and small micro enterprises. The study was conducted in East Java as the province with the largest number of rural banks in Indonesia. Based on the estimation of asymmetric information model to the respondent of rural banks and small businesses, the result shows that adverse selection can be avoided by strengthening the information about prospective borrowers. Regarding moral hazard, rural banks and small businessmen argued that the imposition of the collateral to the debtor has an important role to avoid moral hazard. Rural bank respondents stated that the KUR program with low-interest rates has affected their business development. The results implied the need of broadening the collaboration schemes between this people's business credit program and rural banks.

A Study on the Application of Micro-Credentials for Vocational Competency Development Training Teachers and Instructors (직업능력개발훈련 교·강사의 자격연계형 마이크로 크리덴셜 적용 방안)

  • Miseok Yang;Ohyoung Kwon;Woocheol Kim
    • Journal of Practical Engineering Education
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    • v.15 no.1
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    • pp.169-181
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    • 2023
  • This study was conducted to examine the remuneration curriculum of vocational ability development training teachers and instructors and to examine ways to apply micro credentials. To this end, the current status of the remuneration curriculum of vocational ability development training instructors and instructors at K University's Competency Education Development Institute, the characteristics of micro credentials, and the possibility of linking the remuneration curriculum to micro credentials are as follows. First, most of the recognition of digital certificates was positive for digital certificates such as digital credit, digital badge issuance, and recognition of the recognized qualification process of maintenance education when completing the training course. In addition, as a method of applying micro credentials to conservative education, various cases were proposed to benefit from conservative education, systematization and grading of the qualification process, and credit of the qualification process. Second, as an institutional supplement to enhance the utilization of conservative education using micro credentials, the need to expand NCS-based major conservative education, provide efficient learning contents and learning methods, and set minimum completion time. In addition, the most common response as a way to improve the understanding of teachers and instructors in vocational ability development training was the micro credential promotion plan. Third, in the role of conservative education institutions and vocational ability development training instructors and instructors, conservative education institutions mention maintaining educational quality the most, and active participation was the role of vocational ability development training instructors. Through this study, it is expected to establish a vocational training environment that can enhance expertise and provide a practical portfolio of practical competency history by linking the remuneration curriculum of vocational competency development training instructors and micro credentials.

Microfinance Outreach and the Microfinance Institutions(MFIs) Sustainability: Evidence from Vietnam

  • Chinomona, Richard;Le, Thanh Tam
    • Asian Journal of Business Environment
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    • v.3 no.1
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    • pp.5-16
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    • 2013
  • Purpose - Micro-finance institutions (MFIs) are critical to Vietnam's quest for poverty alleviation among the poor in the rural and agrarian communities. The current study attempts to investigate the impact of microfinance outreach programs undertaken by formal and semi-formal MFIs in Vietnam targeting the poor rural and agrarian communities. Research design, data, methodology - An enquiry was made as to whether the poor and rural communities accessed the micro credit offered by Government supported MFIs and NGOs through their microfinance outreach programs. Furthermore, the current study attempted to explore if the current mode of operations adopted by MFIs in Vietnam is sustainable. Results -The findings indicate that significant progress has been made in Vietnam to alleviate poverty among the poor rural communities through micro finance outreach programs. Conclusions - There are also pointers of MFIs sustainability in Vietnam. However, it still remains to be seen if the current sustainability pointers are long lasting without government subsidies or some international organizations financial support to microfinance outreach programs.

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Determinants of Micro-, Small- and Medium-Sized Enterprise Loans by Commercial Banks in Indonesia

  • YUDARUDDIN, Rizky
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.9
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    • pp.19-30
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    • 2020
  • This paper investigates, in a single equation framework, the effect of bank-specific and macroeconomic determinants on micro-, small- and medium-sized loans by commercial banks in Indonesia. This study uses a sample of 790 observations from 79 commercial banks in Indonesia over the years 2006-2015. This study uses two estimation methods for our panel regressions: static and dynamic generalized method of moments (GMM) panel estimator. In static relationships, the literature usually uses the least square methods on fixed effects (FE) or random effects (RE). I found evidence that all banks, bank profitability and size are positively and significantly related to micro-, small- and medium-sized loans, while the coefficients of liquidity are significantly positive in all specifications, except government banks which is significantly negative. The relationship between risk and credit growth is negative for non-government banks. All estimated equations show that the effect of the capital variable on lending banks to MSMEs is not important in government banks and non-government banks. Finally, macroeconomic variables, such as inflation and gross domestic product, clearly affect the lending of the banking sector particularly non-state banks. The findings have several policy implications to Indonesia government, regulatory authority and bank managers in order to improve bank profitability through bank lending.

Bio-inspired Structural Colors of Transparent Substrate based on Light Diffraction and Interference on Microscale and Nanoscale Structures (자연모사기반 나노-마이크로패턴의 광 회절 및 간섭에 의한 투명기판의 구조색 구현)

  • Park, Yong Min;Kim, Byeong Hee;Seo, Young Ho
    • Journal of Industrial Technology
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    • v.39 no.1
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    • pp.33-39
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    • 2019
  • This paper addresses effects of nanoscale structures on structural colors of micropatterned transparent substrate by light diffraction. Structural colors is widely investigated because they present colors without any chemical pigments. Typically structural colors is presented by diffraction of light on a micropatterned surface or by multiple interference of light on a surface containing a periodic or quasi-periodic nano-structures. In this paper, each structural colors induced by quasi-periodic nano-structures, periodic micro-structures, and nano/micro dual structures is measured in order to investigate effects of nanoscale and microscale structures on structural colors in the transparent substrate. Using pre-fabricated pattern mold and hot-embossing process, nanoscale and microscale structures are replicated on the transparent PMMA(Poly methyl methacrylate) substrate. Nanoscale and microscale pattern molds are prepared by anodic oxidation process of aluminum sheet and by reactive ion etching process of silicon wafer, respectively. Structural colors are captured by digital camera, and their optical transmittance spectrum are measured by UV/visible spectrometer. From experimental results, we found that nano-structures provide monotonic colors by multiple interference, and micro-structures induce iridescent colors by diffraction of light. Structural colors is permanent and unchangeable, thus it can be used in various application field such as security, color filter and so on.

A Proposal for the Development of Online Graduate School for Lifelong Education (평생교육을 위한 온라인 대학원 발전방안 제안)

  • Kwon, Arum;Kim, Seung-In
    • Journal of Digital Convergence
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    • v.20 no.3
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    • pp.415-422
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    • 2022
  • This study requires a new paradigm for universities in line with the global pandemic and the 4th industrial revolution. Accordingly, we propose an educational plan for the H university online graduate school in Korea. As a research method, the implications of scholars and experts on future education were synthesized, and the cases of overseas universities using it were analyzed to propose an online graduate school education plan. As a result of the study, online graduate school needs diversity as a venue for providing new opportunities as lifelong education, and to realize this, they use a microcredit. Blockchain technology is introduced so that microcredit can be transparently verified. In addition, to correspond to various convergence major programs and further develop them, problem-solving-oriented teaching methods enhance students' convergent skills as well as active learning and interaction. More detailed curriculum research at online graduate schools is needed in the future, and we hope that you will contribute to the development of online graduate school education based on this study.

An Empirical Study of Loan Commitment Fees: Evidence from Japanese Borrowers (대출 약정수수료에 관한 실증연구: 일본 차입자를 중심으로)

  • Lee, Sang Whi;Lee, Sa Young
    • International Area Studies Review
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    • v.13 no.3
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    • pp.29-49
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    • 2009
  • We examine the effects of information transparency, lender identity, and credit rating on the commitment fees of syndicated loans originated in Japan, employing a sample of 331 facilities. A syndicated loan is a financing instrument offered to a single borrower by multiple lenders, and Japanese syndicated loan volume increased 36% to a record-high of $283 billion in 2008 compared to 2007. We find that the more informational opaque the borrower, the higher the commitment fees the lender charges to the Japanese borrowers. There is evidence that a syndicate involving a Japanese lead agent is able to extract rents through higher commitment fees. We document that there is a significant relation between the credit rating of the borrower and the commitment fee cost of syndicated loans originated in Japan. Most importantly, our results provide evidence that banks in Japan extract higher returns on syndicated loans through the commitment fees in addition to higher loan spreads. Using a micro-level of Japanese borrowers, we contribute to existing literature by providing our empirical evidence after controlling for borrowing spread.

Development of T-commerce Processing Payment Module Using IC Credit Card(EMV) (IC신용카드(EMV)를 이용한 T-커머스 결제처리 모듈 개발)

  • Choi, Byoung-Kyu;Lee, Dong-Bok;Kim, Byung-Kon;Heu, Shin
    • The KIPS Transactions:PartA
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    • v.19A no.1
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    • pp.51-60
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    • 2012
  • IC(Integrated circuits)card, generally be named smard card, embedded MPU(Micro Processor Unit) of small-size, memory, EEPROM, Card Operating System(COS) and security algorithm. The IC card is used in almost all industry such as a finance(credit, bank, stock etc.), a traffic, a communication, a medical, a electronic passport, a membership management and etc. Recently, a application field of IC card is on the increase by method for payments of T-commerce, as T-commerce is becoming a new growth engine of the broadcating industry by trend of broadcasting and telecommunication convergence, smart mechanization of TV. For example, we can pay in IC credit card(or IC cash card) on T-Commerce. or we can be provided TV banking service in IC cash card such as ATM. However, so far, T-commerce payment services have weakness in security such as storage and disclosure of card information as well as dropping sharply about custom ease because of taking advantage of card information input method using remote control. To solve this problem, This paper developed processing payment module for implementing TV electronic payment system using IC credit card payment standard, EMV.

Risk Analysis of Household Debt in Korea: Using Micro CB Data (개인CB 자료를 이용한 우리나라 가계의 부채상환위험 분석)

  • Hahm, Joon-Ho;Kim, Jung In;Lee, Young Sook
    • KDI Journal of Economic Policy
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    • v.32 no.4
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    • pp.1-34
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    • 2010
  • We conduct a comprehensive risk analysis of household debt in Korea for the first time using the whole sample credit bureau (CB) data of 2.2 million individual debtors. After analysing debt service capacity profiles of debtor groups classified by the borrower characteristics such as income, age, occupation, credit scoring, and the type of creditor business companies, we investigate the impact of interest rate and income changes on debt service-to-income ratios (DTIs) and default rates of respective debtor groups. Empirical results indicate that debt service burdens are relatively high for low income wage earners, high income self-employed, low income capital and card loan holders, and high income mutual savings loan holders. We also find that debtors from multiple financial companies are particularly weak in their debt service capacity. The scenario analysis indicates that financial companies, with the current level of capital buffers, may be able to absorb negative consequences arising from the increase in DTIs and loan default rates if the interest rate and income changes remain modest. However, the negative consequences may fall disproportionately on non-bank financial companies such as capital, credit card, and mutual savings banks, whose debtors' DTIs are already high. We also find that the refinancing risk of household debt is relatively high in Korea as more than half of household mortgage debts are bullet loans. As the DTIs of mortgage loan holders are already high, under the current DTI regulation, mortgage loans may not be readily refinanced especially when the interest rate rises. Disruptions in mortgage loan refinancing may put downward pressure on housing prices, which may in turn magnify refinancing risk under the current loan-to-value (LTV) regulation. Overall our analysis suggests that, for more effective monitoring of household debt risk, it is necessary to combine existing surveillance schemes based on macro aggregate indicators with more comprehensive and detailed risk analyses based on micro individual data.

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