• 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.

• Journal of the Korean Data Analysis Society
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• v.20 no.6
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• pp.3037-3048
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• 2018

This study tried to test the result of recent study reporting that there is no the effect of cross-subsidization by applying it to the Korean banks. Besides, the study also did the research to test the previous study that diversification toward non-interest operating sector is related with the motivation of reduction of bank risk. Main results are as follows. First, there is the effect of cross-subsidization between non-interest operating sector and interest one. The higher non-interest profit to total asset is, the lower loan growth and provision to total loan are. Second, the effect of cross-subsidization is related with the fee revenue to operating revenue rather than the fiduciary revenue to operating revenue because high fee revenue results in shrinking the lending business. Third, diversification toward non-interest sector is associated with reducing risk, and risk is not increased when the high performance of non-interest sector is occurred. This evidence is not line with DeYoung, Torna (2013) arguing that non-interest operating activities lead to increasing risk. Finally, Korean banks have to expand the activities in non-interesting sector focusing on boosting fee revenue to increase the effect of cross-subsidization against the possibility of cutting net interest margin.

• Journal of the Korean association of regional geographers
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• v.11 no.6
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• pp.620-639
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• 2005

In terms of loan transactions, mortgage volume secured by housing in Korea is the most important market share. Hitherto housing finance policies are treated as a kind of property pricing policy. So it is time to import financial systems on behalf of the mortgage loan consumers like a mortgage broker. A mortgage broker is an intermediary that brings a borrower and a creditor together to obtain a mortgage loan. The broker takes the application, performs a financial and credit evaluation, produces documents, and closes the loan. Especially mortgage brokers present themselves as specifically acting in the interest of the consumer by shopping on behalf of the consumer for the best product that meets the consumer's needs and financial circumstances. The paper investigates the economic role of mortgage broker, foreign systems focused on USA, UK, Japan, and characteristics of Korean housing finance markets. Finally the paper provides policy recommendations about Korean mortgage broker system composed of licensing type, uniform professional practice standard, educational requirements.

• Journal of the Economic Geographical Society of Korea
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• v.12 no.4
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• pp.681-701
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• 2009

There were three banks that had the head office in Busan since 1912, Gyong-Nam Bank, Dong-Rae Bank and Busan Commercial Bank. This article tries to catch hold of the characteristics of the establishment and management, and the merging process of three banks. The main stockholders and managers made use of the money of the banks for the enterprises that they operated. Gyong-Nam Bank was combined with Dae-Gu Bank in 1928 to be Dae-Gu Commercial & Industrial Bank. The revised bank ordinance of 1928 regulated that the head office banks had to meet the requirement of the paid-in capital, 2 million yen. Not meeting such an excessive requirement, Dong-Rae Bank was amalgamated to Ho-Nam Bank of Gwang-Ju in 1933. Busan Commercial Bank was absorbed in Cho-Sun Commercial Bank in 1935 because it couldn't get back huge loan from a company which belonged to its three main stockholders. Japanese were already the main stockholders of Cho-Sun Commercial Bank from the beginning of 1920s. The banking agencies were not able to deal with the economic fluctuations effectively, and didn't have any economic organization in support of their profit. Cho-Sun Government-General forced the head office banks to be merged to control the colonial economy.

• Journal of Intelligence and Information Systems
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• v.9 no.2
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• pp.135-154
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• 2003

Credit scoring system (CSS) starts from an analysis of delinquency trend of each individual or industry. This paper conducts a research on credit card delinquency of bank customers as a preliminary step for building effective credit scoring system to prevent excess loan or bad credit status. To serve this purpose, we use association rules as a rule generating data mining technique. Specifically, we generate sets of rules of customers who are in bad credit status because of delinquency by association rule mining. We expect that the sets of rules generated by association rule mining could act as an estimator of good or bad credit status classifier and basic component of early warning system.

• East Asian Economic Review
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• v.21 no.1
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• pp.29-58
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• 2017

The third pillar of the Basel II highlights the role of market discipline in easing the existing pressure on traditional monitoring measures like capital requirement and government supervision. This study test the effectiveness of market discipline in inducing prudential risk management practices among the East Asian banks over the 1995 to 2005 period. Market discipline is measured using information disclosure and interbank deposit holdings. We find that only the latter is an effective market discipline tool. However, the former becomes effective when market concentration is higher. We find that government owned, foreign owned and recapilatised banks are subject to market disciplining when disclosure in taken account but the opposite is true when interbank deposits is taken into account. Finally, we find that banks that disclose more risk related information hold more capital against their non-performing loan. The implications of the findings are discussed.

• Proceedings of the KAIS Fall Conference
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• 2003.11a
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• pp.149-154
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• 2003

Credit scoring system (CSS) starts from an analysis of delinquency trend of each individual or industry. This paper conducts a research on credit card delinquency of bank customers as a preliminary step for building effective credit scoring system to prevent excess loan or bad credit status. To serve this purpose, we use association rules that ore generating method. Specifically, we generate sets of rules of customers who are in bad credit status because of delinquency by using association rules. We expect that the sets of rules generated by association rules could act as an estimator of good or bad credit status classifier.

• KDI Journal of Economic Policy
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• v.43 no.3
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• pp.1-32
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• 2021

With CB data in South Korea, this study examines whether the credit risk of borrowers changes when the regulation on bank mortgage supply is relaxed. We analyze the effect of deregulation on LTV and DTI limits in the Seoul-metropolitan area in August 2014 with a difference-in-difference approach. We find that the probability of delinquency is lower in the Seoul metropolitan area after the deregulation than in other urban areas. The effect is noticeable among low-income and low-credit borrowers. We also find that borrowers change their debt structure to reduce the interest costs utilizing their improved access to bank mortgages. The findings suggest the necessity to consider the burden of the high interest costs of unsecured loans for debtors with low incomes and low credit ratings in designing housing finance regulations.

• International journal of advanced smart convergence
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• v.10 no.2
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• pp.53-58
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• 2021

In this paper, based on the real estate registration model in the Chinese internet environment, we propose a model for the joint business of banking collateral registration. This is to increase the efficiency and service level of the real estate mortgage registration process. And it can solve the problems that in the process of registering a mortgage loan, difficulty of data sharing between the real estate registration agency and the bank, and ordinary users and bank clerks duplicate unnecessary work. In addition, it realizes joint processing and data sharing of real estate registration work with real estate registration agencies and banks, increases the efficiency and level of government affairs services, and offers an optimized solution to realize a one-stop service for real estate security registration. The results of this study are expected to provide theoretical support for the application and innovation of the Internet environment real estate registration model.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.6
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• pp.39-46
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• 2020

Playing an important role in developing the economy and overall developments of the country, commercial banks have to be aware of their crucial presence in order to perform well and contribute significantly. At the same time, as a place to receive deposits, banks are required to be in safe situations to avoid bankruptcy or deal with financial crises. This research seeks to identify the determinants of Capital Adequacy Ratio and Banks' performance as well as the relationship between these two dependent variables. The paper uses 128 observations of 16 Vietnamese commercial banks during the period from 2010 to 2017, with two simultaneous dependent variables CAR and ROE, and independent variables including Return on Assets, Tobin Q, Credit growth, GDP growth, Equity to Deposits, Loans to Deposits, Bank size, Cost to Income, Liquidity risk, Provision for Loan loss ratio, Non-performing loans and Inflation. The results reveal that Capital Adequacy Ratio and Banks' Performance have statistically significant relationship and Credit growth, GDP growth, Equity-to-Deposit ratio and Cost-to-Income ratio all have significant effects on two dependent variables. The findings of this study suggest that commercial banks should control the respective elements in order to maintain adequate level of capital and also create effective performance.