• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.1
• /
• pp.647-654
• /
• 2021

This study examines the non-performing loans of rural banks and macroeconomic factors in Indonesia, including inflation, exchange rates, and interest rates. Theoretically, the existence of erratic macroeconomic conditions can affect the level of non-performing credit risk in rural credit banks in Indonesia. The effect of macroeconomic conditions on non-performing loans has a different response for each economic sector. The main objective of this study is to determine the effect of macroeconomic factors (inflation, exchange rates, and interest rates) and bank-specific factors (credit) on the Non-Performing Loans (NPL) of Rural Banks in Indonesia for the period from January 2015 to December 2018. This study uses a Vector Error Correction Model (VECM) estimation to determine the effect of independent variables consisting of macroeconomic factors and bank-specific factors. Based on the estimation results of the Vector Error Correction Model, three variables that have a positive and significant effect on long-term non-performing loans are credit, inflation, and interest rates. Meanwhile, in the short term, there are only two variables that have a positive and significant effect on non-performing loans, namely, credit and interest rates. Inflation and exchange rate variables have a negative and insignificant effect on bad credit in the short term.

• The Journal of Asian Finance, Economics and Business
• /
• v.7 no.5
• /
• pp.119-130
• /
• 2020

The study seeks to evaluate the impacts of three types of credit - formal, semi-formal, and informal credits - on the well-being of households in Vietnam's rural areas. Based on data from the Vietnam Household Living Standard Surveys in 2014 and 2016, the research uses the instrumental variable fixed-effect models to estimate the effects of three kinds of credit on household's per capita income and expenditure. There are some significant findings. First, in rural areas, formal credit is the most popular source with stable and cheap borrowing costs. Informal credit is a complement to formal credit to meet urgent needs. Funding agriculture activities is the most commonly cited purpose of borrowing, followed by purchasing assets. The highest misuse rate belongs to the group of loans for agriculture production. Second, the results show that credit helps smoothen consumption rather than generate income for rural households. Three types of credit have insignificant or negative effects on household's per capita income. Formal loans significantly improve total expenditure and spending on healthcare and education. Informal and semi-formal credits show a little influence on consumption. Informal loans have a significantly positive effect on healthcare expenditure. In contrast, having semi-formal loans tends to decrease spending on foods.

• Korean Journal of Artificial Intelligence
• /
• v.9 no.1
• /
• pp.21-27
• /
• 2021

In this Paper, Since the 1990s, Korea's credit card industry has steadily developed. As a result, various problems have arisen, such as careless customer information management and loans to low-credit customers. This, in turn, had a high delinquency rate across the card industry and a negative impact on the economy. Therefore, in this paper, based on Azure, we analyze and predict the delinquency and delinquency periods of credit loans according to gender, own car, property, number of children, education level, marital status, and employment status through linear regression analysis and enhanced decision tree algorithm. These predictions can consequently reduce the likelihood of reckless credit lending and issuance of credit cards, reducing the number of bad creditors and reducing the risk of banks. In addition, after classifying and dividing the customer base based on the predicted result, it can be used as a basis for reducing the risk of credit loans by developing a credit product suitable for each customer. The predicted result through Azure showed that when predicting with Linear Regression and Boosted Decision Tree algorithm, the Boosted Decision Tree algorithm made more accurate prediction. In addition, we intend to increase the accuracy of the analysis by assigning a number to each data in the future and predicting again.

• East Asian Economic Review
• /
• v.26 no.3
• /
• pp.179-204
• /
• 2022

This study examines the extent to which policy-based loans to SME exporters affect their export performance (the intensive margin of exports). We also investigate the heterogeneous export effects of policy-based loans that may depend on firm- and industry-specific characteristics, such as credit ratings, debt-to-assets ratios, firm size and age. To do so, we conduct a survey, of 1,000 Korean SMEs, that collect information on firm-level exports and policy-based loans. The main empirical findings strongly support that SMEs that receive policy-based loans tend to increase their export volumes. However, these loans' positive impact on exports are only valid for SME exporters with credit scores of 12 or greater (that is, SMEs that have difficulty accessing the external financial market). The estimation results with respect to SMEs' dependence on external financing imply that policy-based loans for SMEs in sectors that are heavily dependent on external finance are effective in that they are instrumental in increasing these firms' exports. These empirical findings emphasize the importance of the external financial market to SME exporters who face various up-front investments that are related to their exporting activities.

• The Journal of the Korea Contents Association
• /
• v.21 no.9
• /
• pp.771-789
• /
• 2021

This study aims to examine the experiences and behaviors of youth's stock investment with credit loans. Using a qualitative case study method (Creswell, 2015), we interviewed 7 young investors. As a result of the analysis, based on the research method within the case, it was possible to find out the process and reasons for how the participants had credit loan experience and invested in stocks. In addition, 19 common categories could be derived from this. Further analyses classified the process as "start of stock investment", "immersion into the investment", "stock investment through credit loans", and "consequence of stock investment with credit loans". The study concludes with several policy implications and suggestions for future studies.

• The Journal of Information Technology
• /
• v.8 no.3
• /
• pp.11-23
• /
• 2005

This paper study the way of increasing the credit loan for the Venture Companies. They are very important in national economics. But they are short of financial and mortgage although they have many kinds of superb ideas and technologies. Korean government has tried to financially support them. But the support has had its own limit. Banks and other financial institutions have not been in a positive position to loan money out to venture companies because their businesses are highly risky. The credit evaluation system of medium and small business are need to improve in order to increase the Venture Companies. loan. So, it is necessary to find new measures to activate credit loans to them.

• East Asian Journal of Business Economics (EAJBE)
• /
• v.5 no.2
• /
• pp.12-37
• /
• 2017

The analysis of results of the market of loans granted to legal entities, the physical persons are provided in the work. The assessment of condition of industry segments of the market of the credits of legal entities is carried. The results of assessment of the market of the credits of physical persons by types of the granted loans are provided. The correlation and regression analysis on the industry segments of crediting of legal entities is carried out. The dynamics of development of debt on the industry segments of crediting is determined. The results show that: Hypothesis 1. The amount of the issued credits to the legal entities steadily in-creases on all industries of economy. Communication between the industry segments of market very high. Hypothesis 2. Crediting of physical persons is characterized by relative stability. The structure of overdue debt repeats the structure of the issued credits to the physical persons.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.1
• /
• pp.873-880
• /
• 2021

The purpose of this study is to investigate the impact of internal control on credit risk of joint stock commercial banks in Vietnam from 2007 to 2018. Furthermore, we specify bank-specific characteristics and macroeconomic conditions, and analyze how these factors affect credit risk of banks: the number of board members, the number of board members with banking or finance background as ratio of total board members, loans to total assets ratio, loans to deposit ratio, the number of days between the year-end and the publication of the financial statements, and the use of top four auditing firms proxy for five elements of internal control. By using the dataset of 30 Vietnamese joint stock commercial banks and Bayesian linear regression via Random-walk Metropolis Hastings algorithm, the results of this study show that five elements of internal control have a impact on bank credit risk, namely, control environment, risk assessment, control activities, information and communication, and monitoring activities. For factors of banks' characteristics, bank size and financial leverage have a negative impact on banks' credit risk, and bank age has a positive effect. For macroeconomic factors, inflation has a positive impact and economic growth has a negative impact on banks' credit risk.

• The Korean Journal of Applied Statistics
• /
• v.19 no.3
• /
• pp.407-419
• /
• 2006

In this paper, we analyze household overdue loans in Korea which has been causing serious social and economical problems. We consider customers of Bank A in Korea and focus on overdue cash services which have been snowballing in the past few years. From analysis of overdue loans, one can predict possible delays for current customers as well as build a credit evaluation and risk management system for future customers. As a statistical analytical tool, we propose a two-stage Generalized Linear regression Model (GLM) which assumes a logistic model for presence/non-presence of overdue and a gamma model for the amount of overdue in the case of overdue. We perform goodness of fit test for the two-stage model and select significant explanatory variables in each stage of the model. It turns out that age, the amount of credit loans from other financial companies, the amount of cash service from other companies, debit balance, the average amount of cash service, and net profit are important explanatory variables relevant to overdue credit card cash service in Korea.

• The Journal of Fisheries Business Administration
• /
• v.39 no.1
• /
• pp.43-61
• /
• 2008

Excessive public loan with low interest and other tax benefits have been provided for fishermen, but much of them turned out to be little performed. There were the moral hazards of Suhyup in the process of executing the public loans. As the government gave the reimbursement on the financial loss of Suhyup resulting from the public loans, Suhyup had no responsibility of the bad debt loss. Therefore, Suhyup gave little efforts to reduce the non-performing. The government perceived this problem and tried to reduce the under-performing loans. Thus, the government decided to take limited responsibilities. Suhyup made the progress to reduce the under-performing public loans. Suhyup dealt with these situation and made the credit evaluation model of the fisherman's public loan. This paper is for the credit evaluation model in the fisherman's public loan, which explains the model development methodology and the model characteristics in detail. This evaluation model is composed of two sub-component model. the one is the quantitative model and the other is the qualitative model. The quantitative sub-model is for the identification of fishermen financial status and is based on the financial transaction information. Its development methodology is the CSS modeling for the consumer market. The qualitative sub-model is for the evaluation the business prospect and is based on the business information such as fisherman's management skills, technology, equipment. Its development methodology is the AHP. It provides the detailed information in the model development methodology, which is the ideal example such as the public loan. In addition it gives the information to the interest parties such as policy makers, suhyup and fishermen.