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This paper seeks to explore whether bank credit (BC) contains useful information for mitigating economic policy uncertainty (EPU). The results of the bootstrap rolling-window test show that EPU is an effective channel for triggering BC. Additionally, it finds a feedback effect of BC on EPU, indicating that BC is a favorable tool for predicting EPU. Rising policy uncertainty leads banks to adopt aggressive or conservative credit strategies, which further increases policy adjustments. This circular relationship seems to be caught in a chicken or egg dilemma, demonstrating the importance of the government and the banking system in maintaining economic stability. [ABSTRACT FROM AUTHOR]

Copyright of Strategic Universe Journal / Univers Strategic is the property of Dimitrie Cantemir Christian University, Institute for Security Studies and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Research background: Bank credit access plays a determining role in enterprises’ financial growth, competitiveness, and internationalization. However, most entrepreneurs are afraid of being rejected from their credit applications due to financial disadvantages that reduce their probability of receiving credits. To minimize credit access concerns, their entrepreneurial behaviors that are included in the Theory of Planned Behavior (TPB), such as personal attitude (PA), perceived behavioral control (PBC), and subjective norm (SN), might be a good solution. However, depending on cultural differences, their attitudes regarding these factors might change, which also causes changes in firms’ probability of receiving credit. Purpose of the article: This research aims to examine whether the impact of PA, PBC, and SN on credit access of enterprises differ depending on the countries where they do their business. Methods: The researchers investigate 1367 enterprises from different countries. These firms are selected using a purposive sampling method, and then an online questionnaire is sent to the survey respondents. Binary Logistic Regression analyses are performed for analysis purposes. Findings & value added: The results indicate that while the impact of PA on bank credit access does not differ depending on the countries where firms are located, international differences exist in the impacts of PBC and SN on the credit access of enterprises. This paper finds international differences in the impact of RBV’s intangible assets (PA, PBC, SN) on a tangible asset of RBV (financial capability) and explains these results with the factors (economic, political, legal systems) included in Institution-based View, and brings all components of both theories RBV and Institution-based View in a unique research. Financial and educational support from governments and universities for fresh graduate individuals can stimulate entrepreneurial attitudes and financing abilities of prospective entrepreneurs to overcome credit access obstacles. [ABSTRACT FROM AUTHOR]

This paper investigates the impacts of preferential credit policy, faced by capital constraint retailers, on coordinating the supply chain. Apart from different bank's and manufacturer's risk preferences, preferential credit is also affected by the retailers' exogenous collateral. We establish the preferential credit coordinating model (PCCM) to examine the optimal decisions and coordinate the supply chain with different financing channels, such as the preferential bank loan, preferential trade credit and portfolio credit. In this paper, we conclude some critical findings. Firstly, we find that the retailer's optimal would improve its optimal order quantity in the coordinated supply chain when he finances from a risk-pursuing bank or the manufacturer. Secondly, the retailer's financial cost would be shared with the manufacturer whether the retailer utilises preferential trade credit or bank financing channel. Thirdly, the capital constraint retailer would prefer preferential trade credit to the other financing methods for the purpose that the preferential trade credit could improve the coordinated supply chain's efficiency. Finally, we capture different impacts of collateral and risk preference on the supply chain. This article supplements the existing literature on supply chain finance with a preferential credit insight into the condition of the coordinated supply chain. [ABSTRACT FROM AUTHOR]

This article scrutinises China's unexpected economic ascent as an industrial dynamo despite an underdeveloped institutional framework, driven by a fusion of the Currency and Banking School arguments. Our discourse focuses on the reorganisation of endogenous money in post-Communist China, which significantly fortified the domestic economy. We employ a two-tiered framework, firstly linking the Currency vs. Banking School debate to the crucial role of domestic bank credit creation in economic development. Subsequently, we anchor this within the context of the post-Mao reforms, illustrating how 'inside money' is deployed in a top-down manner to real industry via a bottom-up and decentralised organisational design. The emergent Chinese political economy is in our view defined by the amalgamation of neo-statist and neo-liberal credit market policies. We detail the transformative effect of evolving domestic commercial banking trends, thereby shaping a distinctive post-Communist society. [ABSTRACT FROM AUTHOR]

The financial performance of SMEs (small and medium-sized enterprises) plays a crucial role in bank credit access of these enterprises and the economies of countries where they operate. However, firm' executives' Resource-based View (RBV) characteristics can differently affect the financial performance of SMEs that they manage, therefore, credit access of SMEs can differ. In this regard, this paper aims to analyze whether the impact of financial performance on bank access to finance differs depending on executives' educational status, gender, and sectoral experience or not. In line with this aim, this research collects data from 479 randomly selected respondents by directing an online questionnaire. After that, the research data is analyzed by employing a Binary Logistic Regression Test. According to the results, the impact of financial performance on credit access differs depending on the gender and sectoral experience of firms' executives. However, the educational status of firm executives does not play any role in the impact of financial performance on access to finance. [ABSTRACT FROM AUTHOR]

This study compares the short- and long-term relationships between house prices and bank credit in developed and Emerging Market Economies. This fact is an essential issue because most financing is facilitated by bank credit. Using quarterly data from 22 developed and six Emerging Market Economies and the panel autoregressive distributed lag model method, this study found that real house prices are the prominent factor of bank credit. Moreover, the magnitude of house prices and gross domestic product relationship with domestic bank credit is considerably greater in Emerging Market Economies than in developed nations. Meanwhile, the foreign interest rate on bank credit is nearly four times greater in Emerging Market Economies. Further, the exchange ratecredit relationship is positive for developed countries, whereas negative for Emerging Market Economies. Therefore, authorities maintaining financial stability must pay close attention to real house price dynamics. Moreover, Emerging Market Economies must also consider the exchange rate and foreign interest rates in managing credit growth. [ABSTRACT FROM AUTHOR]

The predominance of bank credit in financing the economies of less developed countries is prompting policymakers to stimulate this mode of financing. This study tests the ability of conventional monetary policy to stimulate the supply of bank credit to the private sector in Morocco. Based on the lending channel as a theoretical framework, an analytical framework to explore the conduct of monetary policy and the preconditions for the functioning of this channel was developed. In addition, a test of the impact of monetary policy on credit supply was conducted using bank-level data from a representative sample of the Moroccan banking sector. The results show that demand factors and the quality of potential borrowers are the main drivers of bank credit growth. They also show that monetary policy in Morocco directly affects credit growth. However, no evidence that this impact is mediated through credit supply was provided, indicating that the credit channel is not operational in Morocco. The policy implications of these results are discussed. [ABSTRACT FROM AUTHOR]

The relationship between ICT, the financial sector, and output growth has been extensively studied, however, macro-economic studies with an emphasis on the role of rural ICT on agricultural performance are few and yield mixed findings. Additionally, past research has not given sufficient attention to how bank credit affects agricultural performance. This paper highlighted the dynamic effect of rural ICT penetration and bank credit on agricultural performance in Eastern Indonesia. We used secondary data taken from the Central Bureau of Statistics and the Financial Services Authority. The panel data covered 16 provinces of eastern Indonesia from the first semester of 2010 to the second semester of 2022 (2010S1-2022S2). Using the panel autoregressive distributed lag (ARDL) approach, the results showed that in the long run, rural ICT penetration and bank credit played a significant role in boosting agricultural performance. However, in the short run, the impact of rural ICT penetration and bank credit on agricultural performance was statistically insignificant. Finally, we recommended several important policies that can practically impact and contribute to improving agricultural performance. [ABSTRACT FROM AUTHOR]

This study investigates the loan financing behaviours of Korean firms during the COVID-19 pandemic. I find that financially unhealthy firms and firms with insufficient collateral capacity borrowed less during the pandemic, suggesting that lenders consider credit risk in their lending decisions. Meanwhile, the results provide evidence of credit misallocation. Particularly, zombie firms were able to increase their borrowings and firms increased their borrowings irrespective of their profitability and uncertainty. These results suggest that, without careful monitoring, lenders will suffer loan loss problems to the extent that they misallocated bank credit. [ABSTRACT FROM AUTHOR]

The purpose of this article is to examine the impact of the working capital in the borrowing decision of a retailer. The proposed analysis is based on a model with a retailer, a supplier and a bank in a non-cooperative game with price-sensitive demand. The retailer, the supplier and the bank (if concerned) determine, respectively, the ordering quantity, the wholesale price and the interest rate. A Stackelberg game-theoretic approach is employed where the retailer is a follower and either the supplier or the bank is the leader. Some structural properties are first derived from the mathematical models. Then, some numerical simulations show that: (i) a trade credit guarantees the same profits for the retailer and the supplier as in the case where the retailer has sufficient cash holdings, (ii) there exist some situations where the retailer has a better profit with a borrow than with sufficient cash holdings, and (iii) borrowing decision depends on both retailer's and supplier's discount rate and the retailer's cash holdings. [ABSTRACT FROM AUTHOR]

This paper analyzes the direct and interactive effect of digital payments through institutional quality, consumption expenditure, and bank credit on economic growth for 25-member countries of the Committee on Payments and Market Infrastructures (CPMI) for 2012–2020. Using the Fixed Effect with Driscoll-Kraay Panel Corrected Estimators, it finds that a rise in digital payments positively impacts economic growth. The interaction effect of digital payments with other variables does not promote economic growth. To address differences among the selected countries and to have a robust analysis, the paper classified the selected countries into quantiles based on the GDP per capita level using the Bootstrapped Panel-Quantile Regression (BPQR) method. The BPQR confirms the positive relationship among digital payments, institutional quality, and consumption expenditure with economic growth, whereas credit impacts it negatively. Control variables, such as inflation, exchange rate, health, and unemployment, behave as per economic theories related to economic growth. [ABSTRACT FROM AUTHOR]

The unorganised event management sector comprises a significant portion of the overall event industry in India. These are small businesses that provide event planning and management services. These firms operate without proper structure or organisation, making it difficult for them to compete with larger organised firms. However, unorganised event management firms have strengths that allow them to provide services to clients that organised firms may not be able to provide. Though, due to the lack of proper infrastructure, stiff competition and financial support, many event organisers operating in the unorganised sector face various challenges. The banks can play a vital role in supporting these event organisers by providing them with financial assistance and other services. This study investigates the effect of bank credit on the business performance of unorganised event management firms. The study covers 230 unorganised event organisers from the Salem district. The qualitative data were collected by using a well-crafted questionnaire. The study result proved that bank credit has significantly influenced the business performance of event management firms. Event organisers are satisfied with their business performance. Moreover, bank credit has substantially influenced business performance in developing a capacity to conduct multiple events simultaneously, business growth, return on investment, profitability, competitive advantage, purchase of new equipment and adoption of recent technology. The study recommended that banks should frame adequate policies to support small business firms to access bank credit without any hindrance. Hence, to face challenges, event management firms should invest in proper organisational structure, recruit experienced professionals, and implement efficient planning and execution processes. This will help them to deliver successful events and build a positive reputation in the industry. [ABSTRACT FROM AUTHOR]

The purpose of this article is to analyse the impact of partisan conflict on bank credit, and take the global financial crisis as the time node to analyse the variability of this impact before and after the financial crisis. This article examines the impacts of partisan conflict on the bank credit by employing the US data covering the past 40 years and captures the variability in the effects of partisan conflict based on the rolling sample and time-varying parameter VAR analysis. The full sample results reveal that one standard deviation partisan conflict shock will shrink the bank credit growth rate to nonfinancial sectors, and the negative effects of partisan conflict on bank credit are more substantial after the global financial crisis. The rolling sample and time-varying parameter VAR analysis further confirm that the impacts of partisan conflict shock have varied substantially over time, where bank credit still negatively reacts to the impacts of partisan conflict in recent periods. Additionally, we estimate two extended models and support the intermediate role of economic policy uncertainty in transmitting the partisan conflict and the substitution effect of cross-border bank lending on domestic bank credit. Finally, our major results are unchanged by performing a series of robustness checks. The conclusion of this article is that partisan conflict has a significant impact on bank credit and shows obvious variability, which is more significant after the global financial crisis. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Economics & Administrative Sciences is the property of Republic of Iraq Ministry of Higher Education & Scientific Research (MOHESR) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

We study a supply chain with two competitive online sellers, in which the seller who suffers from capital distress may borrow from a commercial bank or an e-commerce platform. We consider three different supply chain models depending on how many sellers suffer from capital distress. We characterize the sellers' optimal production decisions and the lenders' optimal interest rates, and further examine the sellers' financing preferences. We demonstrate that the e-commerce platform will charge a zero interest rate to the financially constrained seller if the production cost is beyond a certain threshold. It is observed that the financially constrained seller's financing preference is correlated with the capital status and financing choice of its rival. Specifically, if only one of the sellers is financially constrained, it is always optimal for the capital-constrained seller to borrow from the e-commerce platform. In contrast, if both sellers suffer from capital distress, the two sellers prefer e-commerce platform financing when the e-commerce platform's commission rate is relatively high or when the commission ratio is low while the production cost is high. Furthermore, it is more profitable for the bank or e-commerce platform to provide financing service to both capital-constrained sellers. [ABSTRACT FROM AUTHOR]

Copyright of Accounting & Financial Studies Journal is the property of Republic of Iraq Ministry of Higher Education & Scientific Research (MOHESR) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Our study aims to investigate the effect of bank credit on sectoral output growth in Indonesia. The sectoral output comprises the agricultural, manufacturing, construction, wholesale & retail trades, and transport & storage sectors. We position the Covid-19 pandemic as a moderating variable between sectoral economic growth and bank credit. Using monthly time series data from 2015.M1 to 2020.M12, we employ hierarchical linear regression to estimate the functional relationship between variables. The study points out that bank credit positively affects sectoral output. In contrast, the covid-19 pandemic has had a negative effect. Nevertheless, the pandemic moderates the influence of bank credit on the manufacturing, construction, transport & storage sectors but not on the agriculture, wholesales & retail trades sectors. [ABSTRACT FROM AUTHOR]

This study examines the role of environmental degradation in macroeconomic instability for a balanced panel sample of 22 emerging market economies from 1996 to 2019. Governance is included in the macroeconomic instability function as a moderating factor. Besides, bank credit and government spending are also included in the estimated function as control variables. The long-run results from using the PMG-ARDL method show that environmental degradation and bank credit induce macroeconomic instability, whereas governance and government spending reduce it. Interestingly, environmental degradation creates greater macroeconomic instability than the bank credit. We also find that governance being a moderating factor weakens the adverse impact of environmental degradation on macroeconomic instability. These findings are robust to the FGLS technique, suggesting that governments in emerging economies should prioritize environmental degradation and governance in mitigating climate change and ensuring macroeconomic stability in the long run. [ABSTRACT FROM AUTHOR]

Copyright of Accounting & Financial Studies Journal is the property of Republic of Iraq Ministry of Higher Education & Scientific Research (MOHESR) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Journal of Kirkuk University for Administrative & Economic Sciences is the property of Republic of Iraq Ministry of Higher Education & Scientific Research (MOHESR) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The industrial sector plays an important role for the Mexican economy. 32% of GDP comes from companies inserted in the industrial sector, which generates a positive impact, since new jobs and new income are created in these organizations, which help economic growth. However, the companies of the industrial turn need to acquire resources to be able to develop, and one of the ways to achieve it is through bank credit; In this sense, it becomes a complex situation due to the existing credit constraint, derived from a series of events in the financial and banking system, such as the diversification of markets - multiple banking - and weak regulations. This article investigates the determinants for a bank loan granted to be destined to the industrial sector in Mexico. The quantitative data correspond to the period 2008-2018; However, the ENAFIN database contains data from 2010 to 2018, generating a limitation to make the research more robust. The regression analyzes used - PROBIT and TOBIT - show a forecast that when the economy improves, the probability (94%) that an approved bank loan will be granted to a company in the industrial sector increases; on the other hand, an increase in the amounts of bank loans granted to other items and a rise in the number of credit applications make the probability decrease (24% and 15%, respectively). Based on these results, the urgency of the political implications that help improve the link of bank credit with companies in the industrial sector is derived. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Technology Economics is the property of Chinese Society of Technology Economics and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper estimates the impact of bank-borrower geographical distance on the access of farming households using a primary dataset on 1,234 rice farming households in Vietnam. Despite tremendous progress in the internet and telecommunication infrastructures for e-banking that helps relieve information asymmetry and transaction costs, the geographical distance still negatively affects the access of farming households to bank credit. Moreover, the distance from their locations to the nearest provincial roads aggravates this effect. We also find that collateral and the length of credit relationships relieve the adverse restraints on their access to bank credit, as do family members who are bank officers or rice traders or are friends of those agents. The main findings of this paper point to the importance of banks expanding their branch networks and the conversion of local roads to provincial roads by the government in terms of enhancing rice farming households' access to bank credit. [ABSTRACT FROM AUTHOR]

Small companies face significant difficulties in accessing finance, and the use of bank credit and trade credit are the primary sources of financing, specifically in small countries, with little market liquidity, and focused on the banking system, as is the case of Portugal. The main objective of this article is to identify significant drivers of bank and trade credit, as well as investigate the complementary or substitutive relationship between them, considering that both constitute an essential source of financing for small and medium-sized enterprises (SMEs). The sample comprises 5860 companies, and the analysis was performed using panel data methodology (2010–2019). The results suggest that, during the period in which the financial crisis was most felt in the country (2010–2013), companies intensified their demand for trade credit, and in the following years for bank credit. Our evidence does support the substitution hypothesis between trade and bank credit. [ABSTRACT FROM AUTHOR]

Construction has become one of the main sectors supporting economic growth in Albania in recent years. Some of the factors that have boosted the growth are: the increase of residential projects, the continuation of postearthquake reconstruction works and public investments, mainly in road construction. A VEC model will be presented in this paper that uses bank credit for real estate as a cointegrated variable with GDP growth, as the construction sector in Albania occupies a very important role in the economy. The objective of this model is to identify the shortterm and long-term causal relationship between this credit activity and economic growth in Albania. The analysis by subject and purpose of credit use shows that real estate investment credit for individuals occupies the largest share of the total credit portfolio, followed by real estate credit granted to businesses. From the results of the econometric model it was concluded that credit to the real estate sector has a positive effect on long-term economic growth. The construction sector is one of the sectors that contribute the most to GDP and, at the same time, to the growth of the banks' loan portfolio. Lending to this sector, according to the results of this model, has a positive influence on the economy. [ABSTRACT FROM AUTHOR]

We investigate the role of physical distance in corporate lending by exploiting infrastructure improvements as shocks to travel time. Lower travel time increases the likelihood of initiating a new banking relationship, consistent with an economic surplus from lower transaction costs. In existing lending relationships, banks capture part of this surplus by increasing interest rates, in particular, if banks have higher bargaining power. Reductions in travel time to competing banks have the opposite effects. Banks benefit from improved infrastructure through an increase in clients, and lenders that rely more on technology do not exhibit sensitivity to changes in distance. This paper was accepted by Victoria Ivashina, finance. Funding: Financial support from Finans|Bergen is gratefully acknowledged. Supplemental Material: The data files and online appendix are available at https://doi.org/10.1287/mnsc.2022.4346. [ABSTRACT FROM AUTHOR]

Green financing is an effective means to encourage small and medium-sized enterprises (SMEs) to improve environmental efficiency in their operations. This paper studies two financing strategies of a carbon-dependent manufacturer in an e-commerce supply chain, which are called bank credit and cost-sharing with third-party platform that provides a marketplace. The optimal carbon emission reduction (CER) level, selling price, and service level are investigated. It turns out that the participants' profits and environmental benefit under two financing strategies are higher than those without financing. In addition, when the commission provided by the platform is low, the manufacturer is more inclined to bank credit, and when the commission is high, it is more sensible to share CER cost with the platform. The impact of government service supervision policies on corporate decision-making is further explored. The results prove that setting an appropriate service threshold and reward-penalty factor is not only conducive to incentivizing the platform to improve service level but also beneficial to the environment and overall social welfare. This paper provides cooperation strategies for manufacturers in green financing in the e-commerce supply chain and provides policy recommendations for the government to implement e-commerce service regulation and promote CER. [ABSTRACT FROM AUTHOR]

Copyright of Ensayos - Revista de Economía is the property of Ensayos Revista de Economia and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Accounting & Financial Studies Journal is the property of Republic of Iraq Ministry of Higher Education & Scientific Research (MOHESR) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Using a unique setting of an online peer-to-peer lender, I show that banks expand credit access for consumers who obtain FinTech loans. Consistent with FinTech relieving information frictions, this effect is stronger for more credit-constrained consumers. Many borrowers, especially higher-quality ones, use peer-to-peer loans to repay expensive revolving debt. Yet, debt financing and credit score changes cannot fully explain higher bank credit. The increase in bank credit access is stronger when information sets between banks and peer-to-peer lenders diverge more. These results highlight information spillovers as a novel mechanism through which FinTech lending can relieve financial constraints for consumers. This paper was accepted by Tomasz Piskorski, finance. Supplemental Material: The data files and online appendix are available at https://doi.org/10.1287/mnsc.2022.4319. [ABSTRACT FROM AUTHOR]

This study investigates the impact of four legal origins (i.e., English, French, German, and Scandinavian) of a sample of countries on the rate of surplus value and rule of law. It also examines how these factors affect the size of credit provided by banks and economic performance. We found that the rate of surplus value and rule of law affect both the size of bank credit and economic performance. Simultaneously, the rate of surplus value and the rule of law are correlated. Furthermore, the marginal effects of the rate of surplus value and the rule of law on economic performance differ by legal origin. [ABSTRACT FROM AUTHOR]

Following an innovative approach, the effects of financial report quality on the use of trade credit in small and medium‐sized enterprises (SMEs) are examined. This effect is considered in a direct and indirect way. Firstly, we analyze whether SMEs with low‐quality information are more likely to use trade credit as a financial resource. Secondly, we investigate whether the relationship between trade credit and bank credit in SMEs is moderated by the quality of financial reports. For the empirical analysis, we use a sample of Spanish SMEs over the period 2004 to 2011, and apply a panel data model with fixed effects. The findings suggest that firms with low‐quality financial reporting use more trade credit. Furthermore, the influence of bank credit on trade credit is found to be partially moderated by audit opinion. [ABSTRACT FROM AUTHOR]

Despite the key role of trade creditors as sources of finance, the literature on their impact on the proliferation of zombie firms is rare. This study examines whether suppliers, such as banks, engage in "evergreen" lending to zombie firms and whether their behavior differs from that of banks. We found that highly productive, larger and younger firms are less likely to become zombie firms. The behavior of suppliers is, in fact, different from that of banks; they are indeed more cautious in lending to zombie firms. Unlike suppliers, banks seem to have contributed to the rise of resource misallocation, a key explanation for the productivity slowdown in the new century. [ABSTRACT FROM AUTHOR]

This paper reviews the theoretical and empirical literature on the impact of bank regulation on bank lending. It also structures the empirical evidence according to the impact of various bank regulatory measures on bank lending. The surveyed theoretical literature generally indicates that the impact of bank regulation on lending could be asymmetric, depending on the trade-off between the costs and benefits of bank regulation. The evidence from the empirical studies also shows that the impact of bank regulatory measures on lending is ambiguous. Although many studies found the impact to be negative, some established that it was positive while others found it to be insignificant or inconclusive. However, most empirical studies only assumed first-round effects using static and/or dynamic models, whereas the ones incorporating second-round effects using general equilibrium models were limited. Therefore, this systematic review of the literature indicates that policy recommendations regarding the appropriateness and efficacy of bank regulatory measures in influencing bank lending cannot be implemented uniformly across different regions or countries. [ABSTRACT FROM AUTHOR]

this study, efforts were empirically to inspect the long-run association of total outstanding bank credit to the agriculture sector and its productivity in Ethiopia by employing a co-integrated VAR model technique, with annual data running from 1981-2015 agricultural productivity and total bank credit to the agricultural sector as variables of interest, and real government capital expenditure on agriculture, rural population, and seasonal break (dummy) as supplementary variables. A 1% permanent increase in agricultural bank credit was linked to a 0.13 percent increase in agricultural productivity. The speed of the adjustment coefficient was found to be negative and significant with 0.515 values, indicating that 51.5 percent of the deviation from long-run equilibrium caused by a disturbance and/or a shock in the system was eliminated within a year. Unlike to previous studies the financial development-economic growing nexus, there exist the absence of empirical research on causal association between agriculture productivity and bank credit to sector, at least as per the literature review for this study in Ethiopia. In summary, small-holder farmers in particular, and agro-industrial-based entrepreneurs in general, were excluded from bank credit in Ethiopia for a long time. [ABSTRACT FROM AUTHOR]

• Asset leasing versus bank credit for battery swap service provider (SSP) financing. • Players in game theoretical modeling: battery supplier, lessor, SSP, and consumers. • Choice between two financing strategies depends on various equilibrium factors. • Battery supplier likely champions asset leasing, followed by battery lessor and SSP. • Numerical and extended analyses on incentives deepen insights for policymakers. Battery swapping provides a quick electric vehicle (EV) replenishment solution to time-sensitive consumers. To meet the growing demand, a significant investment in establishing swap stations is needed, and fund shortage becomes a bottleneck for swap service providers. To cope with this issue, a swap service provider may partner with a battery lessor, and such a new financing strategy deserves a close look. Compared with traditional bank credit as the benchmark strategy, asset leasing through battery lessors is more flexible and less burdensome. This study establishes a game-theoretical model of a three-tier market comprising one battery supplier at the producer level, one battery lessor and one swap service provider at the vendor level, and heterogeneous end-users at the consumer level. The model compares the swap service provider's profit across bank credit and asset leasing strategies to determine when the battery lessor should be involved. It also examines the impacts of asset leasing on swap station establishment, other stakeholders' profits, consumer surplus, and social welfare. Numerical analyses assess the effectiveness of asset leasing strategy together with four types of incentives: swap operation, station establishment, battery procurement, and battery recycling. Concerning the sustainable development of the EV market, the findings yield managerial implications for supply chain members as well as helpful insights for policymakers. [ABSTRACT FROM AUTHOR]

Copyright of Revista de Ciencias Sociales (13159518) is the property of Revista de Ciencias Sociales de la Universidad del Zulia Venezuela and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

International trade and investment flows provide a mechanism for geographical separation between production and consumption processes. In this study, countries that rely heavily on international trade to supply home demand and have reported positive net CO2 emissions from trade (TrdCO2) over the period 1991–2018 were identified. Accounting for possible distributional heterogeneity, this study examined whether the structural composition of bank credit allocation explains TrdCO2 in these countries. With the growing competition for bank credit resources, the impact of a credit allocation system that prioritizes credit demands of government and state-owned enterprises (GSEs) is modeled and compared to another scenario where the credit allocation decisions of banks rather prioritize financing needs of the private sector. The results showed that the structure of bank credit allocation significantly shapes the exposure of these countries to embodied CO2 emissions in the global trade flows. Specifically, restructuring bank credit allocation towards private sector-focused reduces TrdCO2 while a credit allocation system that allocates more credit to GSEs increases TrdCO2. By implication, bank financing of private sector activities encourages cleaner consumption and can help in mitigating trade-related environmental concerns in developing import-oriented economies. [ABSTRACT FROM AUTHOR]

While it is widely recognized that the development of a sound financial system may contribute to foster economic growth, the relation between economic growth and financial activities is complex. In this perspective, our contribution investigates the existence of threshold effects in the relationship between economic growth and bank credit. Our sample of ASEAN countries is examined over the period spanning from 1993 to 2019. We use the approach of Kremer et al. (2013) to estimate threshold effects in a dynamic panel where a group of explanatory variables can be endogenous. Our results confirm the vanishing effect of finance on economic growth. We found a threshold of 96.5% (significant at the 5% level) for the credit-to-GDP ratio, the threshold variable. In the short run, for observations inferior or equal to the threshold, the positive effect of bank credit expansion on economic growth is around 0.08 (significant at the 1% level). Whereas, for observations superior to the threshold, the positive effect of bank credit expansion on economic growth is around 0.01, but not significant. The role of exporting firms is essential in ASEAN countries as they are more export-oriented than other regions in the world economy. Our results may indicate that the beneficiary of the credit (firms versus households), the structural features (export-led growth), and the regional heterogeneity have to be considered in empirical investigations of threshold effects in the relation between economic growth and bank credit. This empirical evidence may help to formulate sound policy recommendations. • Confirm the vanishing effect of finance on growth in ASEAN. • Bank credit has a different growth effect after the threshold of 96.5%. • The growth effect of bank credit is positive before the threshold. • After the threshold, the growth effect remains positive, but is not significant. • Firms credit and export-oriented growth model explain regional heterogeneity. [ABSTRACT FROM AUTHOR]

Typically, the explanatory variables included in a regression model, in conjunction with the omitted relevant regressors implied by the usual error term, have both direct and indirect effects on the dependent variable. Attempts to obtain their separate estimates have been plagued with simultaneity issues. To circumvent these problems, this paper defines their sum as "total effects", develops a time-varying coefficients methodology for their estimation without simultaneity bias, and applies these techniques to estimate the total effects of commercial bank credit per-capita on real GDP per-capita in Mauritius. An innovation is the introduction of extraneous variables that act as "coefficient drivers" chosen on the basis of best predictive performance, as measured by the smallest value of Theil's U-statistic we were able to locate in the estimation. [ABSTRACT FROM AUTHOR]

The objective of this paper is to examine the role of the banking system in the growth of the Vietnamese economy in the process of the transition that started in the early 1990s. An ARDL approach-based multivariate regression technique is applied to shed light on the impact on the growth of banking development, which is measured by broad money and bank credit. The empirical findings confirm a positive long-term effect of banking development on growth, reflecting the important role of the banking system in a typical bank-based financial system in mobilizing and supplying capital to the economy, thus contributing to growth throughout the process of economic transition. The empirical findings also indicate a nonlinear effect and a diminishing marginal effect of banking development in the sub-period 2007–2020. The thresholds for the two measures of banking development are estimated to be around 107% and 101% of the GDP, respectively. This finding suggests that bank credit expansion needs to be closely controlled to be adaptive to the capital-absorptive capacity of the economy. To a certain extent, this finding is also an indicator of the ongoing extensive growth model adopted in Vietnam, which relies heavily on the quantity of invested capital. [ABSTRACT FROM AUTHOR]

This paper studies a three‐echelon supply chain consisting of a commercial bank, an e‐commerce platform, and a capital‐constrained online retailer. Due to limited creditworthiness, the retailer can only obtain a restricted bank loan, while the remaining needs to resort to the e‐commerce platform to fund its business. We formulate a three‐echelon Stackelberg game in which the bank is a leader, the e‐commerce platform is a subleader, and the retailer is a follower. We analytically derive the optimal interest rates of the bank and the e‐commerce platform and the optimal order quantity of the retailer. Compared with the nonfinancing case, we characterize the regions of the interest rates charged by the bank and the e‐commerce platform under which Pareto improvement can be achieved. We also present the retailer's financing preference under equilibrium and show how the initial capital affects the retailer's financing selection. Numerical examples demonstrate that the retailer's order quantity and expected profit increase with the bank's loan ratio. [ABSTRACT FROM AUTHOR]

This paper considers a two-echelon supply chain consisting of a supplier and a capital-constrained retailer. Both the supplier and the retailer are risk-averse decision makers. The capital-constrained retailer may adopt two mixed financing modes: (1) bank credit and equity financing (BEF) and (2) trade credit and equity financing (TEF). Using a mean-variance framework, we analyze the supply chain members financing and ordering decisions in two cases: symmetric and asymmetric retailer risk aversion threshold information. In the case of symmetric information, we characterize the conditions under which both the supplier and the retailer prefer BEF or TEF. In the case of asymmetric information, we demonstrate that the retailer has an incentive to pretend to be less risk averse. To prevent this distortion behavior, we design a minimum quantity contract for the supplier. Finally, we extend our model to a bank loan-trade credit-equity mixed financing mode (BTEF) in which the retailer can borrow from the bank and the supplier and seeks financial support from investors. The numerical simulations support our results. [ABSTRACT FROM AUTHOR]

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This study is among a very few to investigate the impact of international remittances on bank credit and household investment. Using Fiji as a case study and the most recent available data on Household Income and Expenditure Survey together with applying three distinct econometric techniques, we find that remittances significantly increase the likelihood that households receiving remittances obtain income from investing. Remittances also positively influence the value of bank credit, although this effect is statistically weak. [ABSTRACT FROM AUTHOR]