• Title/Summary/Keyword: Rural Bank

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A Case Study on the Farm Revival Program Conducted by Farmland Bank in Gangwon Province (경영회생지원 농지매입사업 이용실태에 관한 사례연구: 강원지역 농가를 중심으로)

  • Yi, Hyangmi;Kim, Mi Young
    • Journal of Korean Society of Rural Planning
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    • v.20 no.3
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    • pp.201-212
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    • 2014
  • The Farm Revival Program of the Farm Land Bank, implemented in 2006, initiated as the Agricultural Land Bank's business proposal to achieve efficient usage of farm land. Also, expansion of Farm Revival Program will bring positive effects when considering the fact that Farm Revival Program contributes to farm liability issues and management improvements. However, despite the importance of Farm Revival Program, searching for improvement methods through a rural demand survey is very insufficient. The following research limits the target to farms that applied for the management redemption project within Gangwon Province and examined the application motivation, project satisfaction, and demands of the farms. This research holds value as a fundamental data which reflects the demands of farms to better manage Farm Land Purchasing of the Farm Land Bank.

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.

Residents'prefrences for Rural stream bank materials (농촌 마을내부 소하천의 하안재료에 대한 주민 선호도에 관한 연구)

  • 이춘석;류남형
    • Journal of Korean Society of Rural Planning
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    • v.3 no.2
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    • pp.81-89
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    • 1997
  • Still today, many streams are channelized and embanked in Korea. On the other hand, some urban streams are being restored to their natural shapes by landscape planners. It would be better to improve rural streams in a way that would not require restoration in later days. Then, one important question is what kind of embankments the residents prefer for what reasons. Five simulated photos showing from very natural to artificial embankments were used in surveying 90 residents of three villages. Major findings are ; 1. Residents regard safety(from flooding) is the most critical factor to be considered in selection of stream bank materials. 2. They think ideal materials are natural stones or concrete blocks as they look tidy. Concrete retaining walls or vegetated natural slopes are not regarded good. 3. The most preferred material is concrete retaining wall, and the least preferred is vegetated natural slope. They prefer concrete retaining wall which they do not think an ideal material, because it will make a safe bank. 4. Natural stone bank is most preferred for its apperance, and vegetated natural slpoe is most disliked as it may collapse and as it does not look clean.

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Effects of Bank Macroeconomic Indicators on the Stability of the Financial System in Indonesia

  • VIPHINDRARTIN, Sebastiana;ARDHANARI, Margaretha;WILANTARI, Regina Niken;SOMAJI, Rafael Purtomo;ARIANTI, Selvi
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.1
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    • pp.647-654
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    • 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.

Financing Risk in Indonesian Islamic Rural Banks: Do Financing Products Matter?

  • WIDARJONO, Agus;ANTO, M.B. Hendrie;FAKHRUNNAS, Faaza
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.9
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    • pp.305-314
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    • 2020
  • This paper investigates the impact of profit and loss sharing (PLS) contracts on non-performing financing of Islamic rural banks as Islamic small banks focus on small and medium enterprises at province level across country. Our study employs panel data, consisting of 142 Islamic rural banks and using quarterly data from 2013Q1 to 2018Q4, and splits them based on the bank's size and geographical area. Both static and dynamic panel regressions are then applied. The results obviously indicate that a high proportion of profit and loss sharing contracts leads to high financing risk. The large Islamic banks encounter a higher non-performing financing stemming from profit and loss contracts compared to small Islamic banks. Profit and loss contracts also produce higher financing risk for Islamic banks outside Java, as those areas are less developed areas than Java itself. A more efficient Islamic bank is less financing risk. Income diversification lessens the impaired financing and, more particularly, large Islamic banks and Islamic banks located in Java much benefit by diversifying income and financing to lower financing risk. Our study suggests that Islamic rural banks may consider the optimal level of profit and loss sharing contracts to minimize financing risk.

Determinants of Default Risks and Risk Management: Evidence from Rural Banks in Indonesia

  • PUSPITASARI, Devy Mawarnie;FEBRIAN, Erie;ANWAR, Mokhammad;SUDARSONO, Rahmat;NAPITUPULU, Sotarduga
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.8
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    • pp.497-502
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    • 2021
  • This study aims to investigate the determinants of default risk of rural banks in East Java, Indonesia. The method used is descriptive verification and logistic regression analysis. The data used is secondary in the form of monthly annual financial reports of rural banks in East Java during the period 2009-2018. From the results, it was shown that net interest margin (NIM) as a proxy of market risk, non-performing loan (NPL) as a proxy of credit risk, operation efficiency as a proxy of operational risk and return on assets (ROA) as a proxy of profitability have a significant influence on default risk. Meanwhile, the loan to deposit (LDR) ratio as a proxy of liquidity risk has no significant influence on default risk. Banks need to implement risk management and meet the capital adequacy requirements of regulators so that they are resistant to risk, and also, compliant with bank governance to be able to produce high returns for rural banks have an impact on sustainability and its existence. The ability to identify setbacks in bank conditions and the ability to distinguish between healthy and problematic banks will enable to anticipate default banks.

Determinants of Indonesian Islamic Rural Banks' Profitability: Collusive or Non-Collusive Behavior?

  • WIDARJONO, Agus;MIFRAHI, Mustika Noor;PERDANA, Andika Ridha Ayu
    • The Journal of Asian Finance, Economics and Business
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    • v.7 no.11
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    • pp.657-668
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    • 2020
  • This paper investigates the effect of market structure, including some bank-specific variables and macroeconomic conditions, on the profitability of Indonesian Islamic rural banks. We apply the structure conduct performance (SCP) and the relative market power (RMP) hypothesis. Panel data comprising 142 Islamic rural banks from 2013Q1 to 2018Q4 are employed. This study breaks them apart, associated with the level of economic development consisting of Java as developed regions and outside Java as less developed regions. This study employs static and dynamic panel regression. The GMM method, however, is appropriate because of the dynamic nature of profitability. Our results confirm the SCP hypothesis and fail to support the RMP hypothesis. The higher market concentration allows Islamic rural banks to generate a significantly higher profit by conducting a collusive strategy. More interestingly, the collusive behavior may result in more profit for Islamic rural banks located in the developed regions than those in less developed regions. Evidence also highlights the importance of operating efficiency and impaired financing on profitability. High operating efficiency and low impaired financing can improve profit. Our results suggest that capitalizing market share by improving efficiency and optimizing financing contracts between PLS and non-PLS contracts also improve profit.

Occurrence of Chrysanthemum chlorotic mottle viroid in Chrysanthemum(Dendranthema grandiflorum) in Korea

  • Chung, Bong-Nam;Kim, Dong-Chan;Kim, Jeong-Soo;Cho, Jeom-Deog
    • The Plant Pathology Journal
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    • v.22 no.4
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    • pp.334-338
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    • 2006
  • Chrysanthemum chlorotic mottle viroid(CChMVd) isolates have been identified from chrysanthemum showing yellow spots or infected without symptom. They were 399-400 nucleotides length of RNA. CChMVd-SSHA6(GenBank accession no. DQ450682) revealed a GAAA to DUUC substitution in positions 82-85 of CChMVd-MSIN34(GenBank accession no. DQ402041). In vitro RNA transcripts with the complete CChMVd sequence were infectious and induced the typical CChMVd infection symptom of yellow spots in chrysanthemum cv. Sharotte. CChMVd caused reduction in growth in some cultivars, whereas some cultivars were not affected. This is the first report on the occurrence of CChMVd in chrysanthemum in Korea.

The Study on Ecological Function Assessment at Streams in Rural Area - The Focus of Han-River Basin - (농촌지역 소하천의 생태환경 평가 연구 - 한강유역 지류를 중심으로 -)

  • Kang, Bang-Hun;Kim, Nam-Choon;Son, Jin-Kwan;Kim, Mi-Heui;Cho, Seung-Jin;Rhee, Sang-Young
    • Journal of Korean Society of Rural Planning
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    • v.17 no.2
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    • pp.23-32
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    • 2011
  • The purpose of this study is to produce basic planning criteria required in ecological restoration and improvement works of streams in rural area through the application of stream assessment methods (water quality, soil environment, and ecological function assessment) at 6 study sites of Han River basin. The investigation results were as followings; 1) There were the evaluation items like a manure use, salt degree, river peripheral tree, which did not fitted to apply to domestic streams, in the SVAP (Stream Visual Assessment Protocol) and NRCS Riparian Assessment that were evaluation models developed in USDA. The area inhabitants with a little knowledge and education personally seems to utilize the evaluation methods through improvement partly with an aspect that evaluation is slightly easy. 2) From the stream assessment results, the construction of diverse pools, large woody debris and isolated backwater pool are needed to improve a few of problems observed at the mostly study sites. The result of NRCS Riparian Assessment showed that the improvement of stream bank vegetative communities is needed by planting tree with deep-binding root masses, and managing of noxious weeds and exotic undesirable plants. 3) Summing up, the assessment results showed that the assessment scores were higher at upstream than downstream, the stream with totally maintenance than that with partly maintenance, the stream with slope bank than that with vertical bank, and the stream with a flood plain than that without a flood plain. So, the direction of stream maintenance projects must be set by consideration of those results.

Factor Affecting Customers Satisfaction About Banking Services: Evidence from Agribank, Vietnam

  • NGUYEN, Dung Thi;NGUYEN, Ha Quang;PHUNG, Hanh My Tran;THAN, Hoang Viet
    • The Journal of Asian Finance, Economics and Business
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    • v.9 no.6
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    • pp.373-380
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    • 2022
  • Today, customer satisfaction is the most important issue for Vietnamese banks. There are numerous factors that influence bank customers' satisfaction. The study investigates the factors that influence customer satisfaction with deposit services at the Vietnam Bank for Agriculture and Rural Development (Agribank) in Bac Giang province, Vietnam, and analyses the impact of each component. The authors used 5-point Likert scales to assess whether elements were related to the factors determining consumer satisfaction with Agribank's deposit service. To perform this study, exploratory factor analysis (EFA) and multiple regression were used to find factors determining customer satisfaction with Agribank services. Customers that use deposit services at Agribank in Bac Giang province, Vietnam, provided samples of 300 survey questionnaires for this study. SPSS software is used to examine the data. Customers' satisfaction with Agribank's deposit service is influenced by six factors, including reliability, responsiveness, service capabilities, empathy, tangible means, and service price, according to the study. This finding also offers some recommendations for improving service quality in local Vietnamese banks to gain a competitive advantage.