In Korea, the developmental gap is deep between rural and urban areas in spacial aspect and, or between agricultural and industrial side. So there are much room for improvement in agri. development in national standpoint as well as in individual farmer's level. In this respect, agricultural financing is requisitive to speed up the pace of agricultural development and in result, to contribute to improvement of farm income. By the way, farmers' credit demands are always in excess-demand status and they rely on private money-lenders in the burden of high interest rate. In agricultural financing market, there are two kinds of credit ; institutional credit and non-institutional credit market, that is private money-lending. In institutional credit, there are mutual credit system operating by the primary coops and policy credit system by NACF financed by Government in part. Here, in this paper, I venture to study on the improvements of the policy credit system to increase and activate the supply function of agri. policy credit into farmers to enhance their socio-economic status.

With the continuous development of economic globalization, international trade has become an indispensable part of the world economy, and the research object of this paper is one of the commonly used settlement methods in international trade business — Letter of Credit. The Letter of Credit has the bank as the guarantee, which has a high degree of reliability, so the number of enterprises using this settlement method is increasing year by year. However, at the same time, the incidence of letter of credit fraud cases is also gradually increasing. According to the data, import and export enterprises, banks and financial institutions all over the world suffer a lot from L/C fraud every year. Reducing the occurrence of L/C fraud is a very necessary topic in the current world economic development, which is of great significance to maintain the stable development of international trade. As there are no special laws and regulations against L/C fraud in the world, the prevention of L/C fraud mainly depends on the import and export enterprises themselves, banks, financial institutions and judicial departments of various countries. Through case analysis, this paper elaborates the causes, ways, prevention and relief of L/C fraud from the perspectives of importers, exporters and banks, and summarizes the common means of L/C fraud, hoping to provide some reference value for readers of this paper in the prevention and response of L/C fraud.

This paper investigates the relationships between bank credit and trade credit with profit of 130 agricultural firms listed on Vietnam’s stock exchanges during the period 2008-2014. Using the GMM approach, the paper reveals inverted-U shaped (∩) relationships between bank credit and trade credit with profit. Specifically, the optimal threshold of bank credit and trade credit to total assets of the firms are 0.4173 and 0.2425, respectively. The findings mean that if the ratio of bank credit to total assets exceeds the benchmark of 0.4173, firms should consider restructuring debts to get them back to the benchmark. To do so, firms should withdraw from those business fields that are not of their profession, in addition to liquiditizing unused assets to repay debts and not using short-term credit to invest in long-term projects. Firms may use trade credit wisely when other sources of finance are lacking. In concrete terms, firms can increase trade credit use if the ratio of trade credit to total assets is below 0.2425. Yet, if this ratio goes beyond this benchmark, firms should get back to this benchmark, e.g., keeping a suitable amount of inventory. The implications of this study is to boost firm growth in the proposed way.

This research investigates the credit management guidelines to strengthen Thai industrial sector. The research has been simulated from the findings of both qualitative and quantitative of 500 questionnaires distributed to industrial business executives in Thailand. The data were analyzed by descriptive analysis categorized into SME and large enterprises, and SEM to conduct the model in consistent with the empirical data. The results show that: (1) the credit management guidelines consist of 4 factors: a) characteristics management b) financial management c) operations management and d) assets management. The business executives gave overall importance on the guidelines at a high level with an average of 3.86. (2) The development of SEM shows that the model fits with the empirical data at Chi-Square probability level = 0.084, CMIN/DF = 1.164, GFI = 0.965 and RMSEA = 0.018. (3) The characteristics management directly influences the financial management and the operation management. The financial management directly influences on the assets management. The assets management has direct influence on the operations management. The findings show that the characteristics management is the essential starting component in SEM and the financial management factor has the most influence in the assets management variable with standard regression weight of 0.990.

This paper examines whether lending structure can lower credit risk by employing econometric techniques of panel data for the Vietnamese banking system at the bank level used by economic sectors from 2011 to 2016. New light is being shed on assessing the impact of each industry’s debt outstanding on credit risk. Adopting findings from previous studies, we assess credit risk from two different sources, including loan loss provision and non-performing loan. Moreover, we also focus on observing lending structure in many different aspects, from concentrative levels to the short-term and long-term stability levels of lending structure. The Generalized Method of Moments (GMM) estimator was applied to analyze the relationship between concentration and banking risks. In general, the results show that lending concentration may decrease credit risk. It is interesting to observe that the Vietnamese commercial bank lending portfolios have, on average, higher levels of diversity across different sectors. In particular, the increase in hotel and restaurant lending contributes to decrease credit risk while the lending portfolios of banks in agriculture, electricity, gas and water increase credit risk. This study suggests the need for further analysis and research about portfolio risks in lending activities for maintaining efficiency and stability in the commercial banking system.

An economic downturn can occurred through unexpected events in various fields, such as the subprime mortgage crisis and the outbreak of Coronavirus Disease-2019 (COVID-19). Trade credit is important for small- and medium-sized enterprises (SMEs), especially during a monetary contraction, as it is the last option for firms that lack bank credit. This study aims to determine whether trade credit is profitable for the buyer and supplier firms during and after a financial crisis. We use panel data consisting of all trade credit transactions and financial statements of 5,751 Korean firms during the period 2008–2012. It shows that trade credit is more profitable for both buyers and suppliers in the post-crisis period than during the crisis. Moreover, trade payable is more effective for unconstrained buyers than for constrained buyers. Finally, a mixed strategy is superior to an aggressive or passive strategy of SMEs. The results suggest less profitability of trade credit during a period of contraction and greater sensitivity of the buyer SMEs, emphasizing the idiosyncratic liquidity strategy of each firm. This study can be helpful to develop a strategy of profitable trade credit for SMEs and to establish a policy of managing liquidity for the authority.

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.

This paper examines the impacts of credit on income inequality in Vietnam. Though it is one of the most common measures of financial development, there is a dearth of research in this area. Unlike previous studies, the paper disaggregates the impact of each type of credit on income inequality, looking at the Gini coefficient. We employ the Generalized Method of Moment (GMM) to solve the endogenous problem. The primary data set contains a panel of 60 Provincial observations, from data collected from the General Statistics Office of Vietnam from 2002 to 2016. The empirical findings show that, while commercial credit increases income inequality, policy credit contributes to reducing income inequality in Vietnam. The results also confirm the important roles of education, institutional quality and foreign direct investment in fighting against income inequality in Vietnam. However, the paper does not provide adequate evidence to support the inverted U-shaped relationship between credit and income inequality. Based on the findings, we argue that the government should direct flows of credit to real economic activities rather than speculative investment; more bank credit should be allocated to rural areas and agriculture; and favorable credit programs should be designed to promote education, especially of those living in rural areas.

The paper investigates the mechanism through which corporate credit ratings affect dividend payments by decomposing the mean difference of dividends into a part that is explained by the determinants of dividends and a residual part that is contributed by the pure credit group effect, in the framework of the traditional dividend model of Fama and French (2001). Historically, better credit rated firms have shown consistently higher propensity to pay dividends especially during the economic crisis period. According to the counter-factual decomposition technique of Jann (2008), better rated firms are more responsive to the firm characteristics that have positive impact on dividends and poor rated firms are more responsive to the negative dividend predictors. As a result, good (bad) credit ratings make corporate managers become more bold (timid) in their dividend payments and they tend to pay more (less) dividends than what their firm characteristics prescribe. The degree of information asymmetry increases for the poor group firms during crisis periods and they attempt to reserve more cash in preparation for future investments. The decomposition results suggest that the credit group effect can potentially exceed the effect of firm characteristics because firms of different credit ratings can respond to the very same firm characteristics in a different manner.

The paper examines the dynamic relationship of domestic credit and stock market liquidity on the economic growth of the Philippines from 1995 to 2018 applying the autoregressive distributed lag (ARDL) bounds testing approach to cointegration, together with Granger causality test based on vector error correction model (VECM). The ARDL model indicated a long-run relationship of domestic credit and stock market liquidity on GDP growth. When the GDP per capita is the dependent variable there is weak cointegration. Also, the Johansen cointegration test confirmed the existence of long-run relationship of domestic credit and stock market liquidity both on GDP growth and GDP per capita. The VECM concludes a long-run causality running from domestic credit and stock market liquidity to GDP growth. At levels, domestic credit has significant short-run causal relationship with GDP growth. As for stock market liquidity at first lag, has significant short-run causal relationship with GDP growth. With regards to VECM for GDP per capita, domestic credit and stock market liquidity indicates no significant dynamic adjustment to a new equilibrium if a disturbance occurs in the whole system. At levels, the results indicated the presence of short-run causality from stock market liquidity and GDP per capita. The CUSUMSQ plot complements the findings of the CUSUM plot that the estimated models for GDP growth and GDP per capita were stable.

The purpose of this study is to discover the interaction between credit growth and operational self-sustainability and to examine factors that affect credit growth and operational self-sustainability of people's credit funds (PCFs). Credit growth and operational self-sustainability are factors affecting the operations and the goals of people's credit funds (PCFs) in the Mekong Delta region of Vietnam. After regression analysis on a set of panel data from 2013 to 2018 of 24 PCFs, it appears that deposit growth and loan-to-deposit ratio have positive relationships with credit growth, while capital adequacy ratio and operational self-sustainability have negative relationships with credit growth of PCFs; capital adequacy ratio, deposit growth and income have positive relationships with operational self-sustainability, while credit growth and non-performing loan ratio have negative relationships with the operational self-sustainability of PCFs. At the same time, credit growth and operational self-sustainability have a relationship to interact with each other in a contrary trend. The results of this research are accurate according to the characteristics and development history of PCFs in the Mekong Delta region of Vietnam from 2013-2018. This study helps researchers and managers to understand the key determinants for better management of PCFs.

The study aims to investigate factors influencing business households’ decision for borrowing credit: the case of commercial banks in Tra Vinh Province, VietNam. The study was conducted by collecting data from 300 business households traded at four commercial banks in Tra Vinh province (Viet Nam bank for agriculture and rural development, Tra Vinh Branch; Viet Nam jointstock commercial bank industry and trade, Tra Vinh Branch; Asia joinstock commercial bank, Tra Vinh Branch; Viet Nam jointstock commercial bank for foreign trade, Tra Vinh Branch). By the use of the Binary Logistic regression method, the research found out that the factors influencing to borrow credit of household business’s decision including: banks brand names, loan interest rates, service attitude, and loan procedures. Of those, the banks brand names and lending interest rates have the strongest impacts on borrow credit decision of business households at commercials banks in Tra Vinh province. Since then, the study has proposed solutions to improve access to credit of business households in commercial banks in Tra Vinh province in the coming time, such as: developing a bank brand; the development of flexible lending interest rate policies; improve service style of bank staff; at the same time, simplifying lending procedures.

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.

In the Korean capital market, there are three credit rating agencies. Potential credit ratings based on credibility in the financial market are calculated independently for each rating agency. It often happens that despite the fact that the grades of the rating agencies are the same and have the same rating system, their actual ratings are different, even for the same firm. In such circumstances, investors may wonder why. In this study, we assume that the cause is the information environment in which the company operates. The credit ratings of rating agencies are mainly classified into bonds or commercial papers. The bonds are rated primarily for long-term of three years or more, and commercial papers specify ratings for less than one year. The information environment to be verified in this study was observed with a commercial paper. Under the assumption the larger the analyst following is, the more transparent is the information environment, we analyzed the influence of the number of analysts following on the degree to which ratings conflicted among credit rating agencies. The results of our analysis confirmed that opinion conflict among credit rating agencies is clearly reduced for companies with good information environments.

Purpose - The purpose of this research is to make a comparative assessment of People Credit Funds (PCFs) ranking in Vietnam between the Circular No. 42/2016/TT-NHNN dated December 20, 2016 with the Decision No. 14/2007/QD-NHNN dated 09/4/2007 issued by the Governor of the State Bank. Research design, data, and methodology - This study is mainly based on the Circular No. 42/2016/TT-NHNN dated December 20, 2016 and the Decision No. 14/2007/QD-NHNN dated 09/4/2007 issued by the Governor of the State Bank on PCFs ranking. Results - The study paper has shown positive changes in PCFs ranking in Vietnam in accordance with the Circular No. 42/2016/TT-NHNN, such as increasing Capital Adequacy Ratio (CAR), maintaining CAR, improving assets quality, developing indicators of governance, management and control capability. These changes have implications for the development and efficient performance of PCFs in Vietnam. Conclusions - The classification and evaluation of PCFs will contribute to its healthy development. These finding support PCFs to understand more about rating methodology, significance of rating system and the importance of improving their rating. PCFs in Vietnam desire to develop their business effectively, they need to understand exactly and comply fully with regulations related to their field of operations.

Purpose – In this work, we examined the causal relationship between credit loans from households (CLH), loan collateralized with housing (LCH) and an interest of certificate of deposit (ICD) among others in South Korea. Furthermore, the optimal forecasts on the underlying model will be obtained and have the potential for applications in the economic field. Research design, data, and methodology – A total of 31 realizations sampled from the 4th quarter in 2008 to the 4th quarter in 2016 was chosen for this research. To achieve the purpose of this study, a regression model with correlated errors was exploited. Furthermore, goodness-of-fit measures was used as tools of optimal model-construction. Results – We found that by applying the regression model with errors component ARMA(1,5) to CLH, the steep and lasting rise can be expected over the next year, with moderate increase of LCH and ICD. Conclusions – Based on 2017-2018 forecasts for CLH, the precipitous and lasting increase can be expected over the next two years, with gradual rise of two major explanatory variables. By affording the assumption that the feedback among variables can exist, we can, in the future, consider more generalized models such as vector autoregressive model and structural equation model, to name a few.

The research aims to help merchant acquiring institutions gain a better insight on what merchant establishments in the Singapore market perceive of the costs they incur due to credit card acceptance. The research attempts to study the Singapore market and establish if increased credit card usage does increase costs for the merchant establishments that accept credit cards, this will help to acquire institutions in Singapore have a better understanding of merchant perceptions and what drives or deters credit card acceptance in the Singapore market. The survey was based on an interview of merchant establishments and the views of the merchants and was not based on their financial data. As a first step, the variables used in the survey were tested for interdependence using Chi-square tests; subsequently data reduction using factor analysis was performed and finally linear regression to establish a relation between dependent and independent variables. Merchant establishment believe accepting credit cards and increasing volume is costlier compared to another form of payment, but have mixed awareness about interchange fee. It also indicated that interchange fee and cardholder benefits are independent of the merchant establishments. The study only broadly attempts to gauge merchants view if increased credit card usage has increased costs for them.

제21차 파리 기후변화협약 당사국총회(COP21)에서 신기후변화체제인 파리협정이 채택되었으며, 파리협정은 각 국가가 국가별 기여방안(INDC)을 스스로 정하여 매 5년마다 상향된 감축 목표를 제출하도록 하고 있다. 우리나라는 2030년 총 국가 배출량 전망치(BAU) 대비 37%를 감축하겠다는 내용의 국가별 기여방안을 UN에 제출하였다. 이러한 국제 및 국내 환경은 온실가스 배출 및 감축량 산정의 중요성을 부각시키며, 국내의 다수의 기업들은 온실가스 배출의 감축을 위하여 부산물, 폐수, 에너지 등을 교환하는 산업공생을 진행하고 있다. 산업공생은 공급기업, 수요기업 등의 다수의 이해당사자가 관련되어 있으므로, 산업공생으로 발생하는 온실가스 감축 크레딧의 할당이 중요하다. 현재 우리나라의 경우 온실가스 감축 크레딧을 기업의 경계를 기준으로 부여 및 할당하고 있으며, 이와 같은 방법은 전체적인 온실가스의 발생량은 저감시킬 수 있으나, 산업공생에 기여한 일부 이해당사자의 온실가스 배출량을 오히려 증가시킬 수 있는 문제점이 발생한다. 이러한 결과는 산업공생을 추진하는데 있어 커다란 장애요인으로 온실가스 감축노력을 활성화시키기 위해 산업공생 활동이 활발히 일어나도록 온실가스 감축 크레딧의 할당에 대한 제도개선이 필요하다. 산업공생에 의하여 발생하는 온실가스 감축 크레딧은 산업공생과 관련된 이해당사자들의 노력에 의한 결과이므로 총량범위 내에서 상호협의하여 할당하는 유연성을 가지도록 제도개선이 필요하다고 판단된다. 한편, 본 연구에서는 울산광역시에서 현재 이루어지고 있는 실제 산업공생사례를 대상으로 연구를 수행하였다.

The purpose of this study is to analyse whether the capability assesment index to perform services as well as creditratings for the governmental procurement bidding influence earnings management behaviour using discretionary accrualsand real earnings management in the construction waste disposal industry. For this study, out of the 530 population(interimdisposal service companies for construction waste) across the country, the final sample of 144 companies is selected foran analysis period of six years, starting from 2008 to 2013. The modified Jones model (1995) is used to measure earningsmanagement and the Kothari et al. model (2005) reflecting return on total assets (ROA) is also applied to produce thediscretionary accruals. In addition, earnings management through real activities is measured by the model developed byRoychowdhury (2006) and the method developed by Cohen et al. (2008) is adopted to calculate the measurement ofintegration of real earnings management. Overall, our empirical results of the analysis show that the capability assessmentindex to perform services as well as credit ratings significantly influence earnings management behaviour in theconstruction waste disposal industry. First, the managers of companies having higher assessment index report increasedprofits through adjusting both discretionary accruals and real earings management. Second, the managers of speculativeenterprises which rank lower credit ratings use higher income-increasing discretionary accruals. These research findingsimply that the regulatory authorities should properly consider the earnings management behavior of the construction wastedisposal service industry in setting the qualification standards for the governmental procurement bidding. The usefulnessof this study results can be highlighted by alerting the industry managers that improper earnings management practicesnot only decrease the successful bidding chances of the companies involved but also deteriorate long-term firm valuesin the market.