Search results for: credit spreads
167 Provisions for Risk in Islamic Banking and Finance in Comparison to the Conventional Banks in Malaysia
Authors: Rashid Masoud Ali Al-Mazrui, Ramadhani Mashaka Shabani
Abstract:
Islamic banks and financial institutions are exposed to the same risks as conventional banking. These risks include the rate return risk, credit or market risk, liquidity risk, and operational risk among others. However, being a financial institution that operates Islamic banking and finance operations, there is additional risk associated with its operations different from conventional finance, such as displacing commercial risk. They face Shari'ah compliance risks because of their failure to follow Shari'ah principles. To have proper mitigation and risk management, banks should have proper risk management policies to mitigate risks. This paper aims to study the risk management taken by Islamic banks in comparison with conventional banks. Also, the study evaluates the provisions for risk management taken by selected Islamic banks and conventional banks. The study employs qualitative analysis using secondary data by applying a content analysis approach with a sample size of 4 Islamic banks and four conventional banks ranging from 2010 to 2020. We find that these banks all use the same technique, except for the associated risk. The extra ways are used, but only for additional risks that are available to Islamic banking and finance.Keywords: emerging risk, risk management, Islamic banking, conventional bank
Procedia PDF Downloads 73166 Changing New York Financial Clusters in the 2000s: Modeling the Impact and Policy Implication of the Global Financial Crisis
Authors: Silvia Lorenzo, Hongmian Gong
Abstract:
With the influx of research assessing the economic impact of the global financial crisis of 2007-8, a spatial analysis based on empirical data is needed to better understand the spatial significance of the financial crisis in New York, a key international financial center also considered the origin of the crisis. Using spatial statistics, the existence of financial clusters specializing in credit and securities throughout the New York metropolitan area are identified for 2000 and 2010, the time period before and after the height of the global financial crisis. Geographically Weighted Regressions are then used to examine processes underlying the formation and movement of financial geographies across state, county and ZIP codes of the New York metropolitan area throughout the 2000s with specific attention to tax regimes, employment, household income, technology, and transportation hubs. This analysis provides useful inputs for financial risk management and public policy initiatives aimed at addressing regional economic sustainability across state boundaries, while also developing the groundwork for further research on a spatial analysis of the global financial crisis.Keywords: financial clusters, New York, global financial crisis, geographically weighted regression
Procedia PDF Downloads 302165 Statistical Analysis of the Main Causes of Delay Factors of Infrastructure Projects
Authors: Seyed Ali Mohammadiborna, Mehdi Ravanshadnia
Abstract:
Project delays usually detrimentally affect perceptions of project success and can in some instances, result in increased costs and other time-related damages to project stakeholders. One of the realities in the national infrastructure projects is that since the primary stakeholders are state-affiliated, the delay factors of the projects have not been seriously taken into account despite the importance of on-time completion of projects. Project postponement has different economic and social consequences and leads to the technical and economic infeasibility of the infrastructure projects in the form of reduced productivity and exploitation capacity. The present study aimed at investigating delay factors of Iranian national infrastructure projects according to regulatory reports of the Plan and Budget Organization (BPO) of Iran. The present study scrutinized the influence of each of the factors that caused delays in national Iranian infrastructure projects according to the supervision reports of the planning and budget organization in 8 years. For this purpose, the study analyzed the information regarding the impact of 12 key delay factors causing delays in average 4867 projects per year in all provinces. The said factors were classified into the three groups of executive, credit, and financial and environmental-procurement factors.Keywords: delays, infrastructure, projects, regulatory
Procedia PDF Downloads 133164 Consumer Protection: An Exploration of the Role of the State in Protecting Consumers Before and During Inflation
Authors: Fatimah Opebiyi
Abstract:
Economic growth promotion, inflation reduction and consumer protection are among the core public interest aims of governments. Nevertheless, higher rates of default by consumers in relation to credit card loans and mortgages in recent times illustrate that government’s performance in balancing the protection of the economy and consumer is subpar. This thereby raises an important question on the role of government in protecting consumers during prolonged spells of inflation, particularly when such inflationary trends may be traceable to the acts of the government. Adopting a doctrinal research methodology, this article investigates the evolution of the concept of consumer protection in the United Kingdom and also brings to the fore the tensions and conflicts of interests in the aims and practices of the main regulators within the financial services industry. Relying on public interest theories of regulation and responsive regulatory theory, the article explores the limitations in the state’s ability to strike the right balance in meeting regulatory aims of the regulatory agencies at the opposite ends of the spectrum.Keywords: financial regulation, consumer protection, prudential regulation, public interest theories of regulation, central bank
Procedia PDF Downloads 72163 Prioritization of Customer Order Selection Factors by Utilizing Conjoint Analysis: A Case Study for a Structural Steel Firm
Authors: Burcu Akyildiz, Cigdem Kadaifci, Y. Ilker Topcu, Burc Ulengin
Abstract:
In today’s business environment, companies should make strategic decisions to gain sustainable competitive advantage. Order selection is a crucial issue among these decisions especially for steel production industry. When the companies allocate a high proportion of their design and production capacities to their ongoing projects, determining which customer order should be chosen among the potential orders without exceeding the remaining capacity is the major critical problem. In this study, it is aimed to identify and prioritize the evaluation factors for the customer order selection problem. Conjoint analysis is used to examine the importance level of each factor which is determined as the potential profit rate per unit of time, the compatibility of potential order with available capacity, the level of potential future order with higher profit, customer credit of future business opportunity, and the negotiability level of production schedule for the order.Keywords: conjoint analysis, order prioritization, profit management, structural steel firm
Procedia PDF Downloads 380162 Cash Flow Optimization on Synthetic CDOs
Authors: Timothée Bligny, Clément Codron, Antoine Estruch, Nicolas Girodet, Clément Ginet
Abstract:
Collateralized Debt Obligations are not as widely used nowadays as they were before 2007 Subprime crisis. Nonetheless there remains an enthralling challenge to optimize cash flows associated with synthetic CDOs. A Gaussian-based model is used here in which default correlation and unconditional probabilities of default are highlighted. Then numerous simulations are performed based on this model for different scenarios in order to evaluate the associated cash flows given a specific number of defaults at different periods of time. Cash flows are not solely calculated on a single bought or sold tranche but rather on a combination of bought and sold tranches. With some assumptions, the simplex algorithm gives a way to find the maximum cash flow according to correlation of defaults and maturities. The used Gaussian model is not realistic in crisis situations. Besides present system does not handle buying or selling a portion of a tranche but only the whole tranche. However the work provides the investor with relevant elements on how to know what and when to buy and sell.Keywords: synthetic collateralized debt obligation (CDO), credit default swap (CDS), cash flow optimization, probability of default, default correlation, strategies, simulation, simplex
Procedia PDF Downloads 265161 Factors Influencing the Profitability of the Conventional and Islamic Banks in Four Asian Countries
Authors: Vijay Kumar, Ron Bird
Abstract:
The study investigates the effect of bank-specific, industry-specific and macroeconomic variables on the profitability of conventional and Islamic banks. Our sample comprises 1,781 bank-year observations of 205 banks from four countries in the Asian region for the period 2004-2014. Our results suggest that credit quality, cost management and bank size are the keys factors that contribute positively to bank profitability in Asia. The banks with high non-performing loans and high cost-to-income ratio are more likely to be exposed to losses. The impacts of the bank-specific variables are stronger than are the industry-specific and macroeconomic variables. We find that Malaysian banks are the least profitable compared to the banks in Bangladesh, Indonesia and Pakistan. There is strong evidence to suggest that conventional banks are more profitable than Islamic banks. Our results suggest that the impact of capital adequacy ratio and bank size and loan to deposit ratio vary across Islamic and conventional banks and across different subsamples.Keywords: capital adequacy ratio, Islamic banks, non-performing loan ratio, ownership
Procedia PDF Downloads 153160 Technical Efficiency and Challenges of Smallholder Horticultural Farmers in Ghana: A Wake-Up Call for Policy Implementers
Authors: Freda E. Asem, R. D. Osei, D. B. Sarpong, J. K. Kuwornu
Abstract:
While market access remains important, Ghana’s major handicap is her inability to sustain export growth on the open market. The causes of these could be attributed to inefficiency, lack of competitiveness and supply-side constraints. This study examined the challenges faced by smallholder horticultural farmers and how it relates to their technical efficiency. The study employed mixed methods to address the problem. Using the Millennium Development Account (MiDA) Farmer Based Organization survey data on farm households in 23 districts in Ghana, the study assessed the technical efficiency of smallholder horticultural farmers (taking into account production risks). Focus group discussions (FGDs) and in-depth interviews were also conducted on smallholder mango, pineapple, and chilli pepper farmers selected districts in Ghana. Results revealed the constraints faced by smallholder horticultural farmers to be marketing, training, funding, accessibility, and affordability of inputs, land, access to credit, and the disconnect between themselves and policy makers and implementers.Keywords: productivity, gender, policy, efficiency, constraints
Procedia PDF Downloads 476159 Analysis of the Simulation Merger and Economic Benefit of Local Farmers' Associations in Taiwan
Authors: Lu Yung-Hsiang, Chang Kuming, Dai Yi-Fang, Liao Ching-Yi
Abstract:
According to Taiwan’s administrative division of future land planning may lead farmer association and service areas facing recombination or merger. Thus, merger combination and the economic benefit of the farmer association are worth to be discussed. The farmer association in the merger, which may cause some then will not be consolidated, or consolidate two, or ever more to one association. However, under what condition to merge is greatest, as one of observation of this study. In addition, research without using simulation methods and only on the credit department rather whole farmer association. Therefore, this paper will use the simulation approach, and examine both the merge of farmer association and the condition under which the benefits are the greatest. The data of this study set include 266 farmer associations in Taiwan period 2012 to 2013. Empirical results showed that the number of the farmer association optimal simulation combination is 108.After the merger from the first stage can be reduced by 60% of the farmers’ association. The cost saving effects of the post-merger is not different. The cost efficiency of the farmers’ association improved it. The economies of scale and scope would decrease by the merger. The research paper hopes the finding will benefit the future merger of the farmers’ association.Keywords: simulation merger, farmer association, assurance region, data envelopment analysis
Procedia PDF Downloads 342158 Ontology for Cross-Site-Scripting (XSS) Attack in Cybersecurity
Authors: Jean Rosemond Dora, Karol Nemoga
Abstract:
In this work, we tackle a frequent problem that frequently occurs in the cybersecurity field which is the exploitation of websites by XSS attacks, which are nowadays considered a complicated attack. These types of attacks aim to execute malicious scripts in a web browser of the client by including code in a legitimate web page. A serious matter is when a website accepts the “user-input” option. Attackers can exploit the web application (if vulnerable), and then steal sensitive data (session cookies, passwords, credit cards, etc.) from the server and/or from the client. However, the difficulty of the exploitation varies from website to website. Our focus is on the usage of ontology in cybersecurity against XSS attacks, on the importance of the ontology, and its core meaning for cybersecurity. We explain how a vulnerable website can be exploited, and how different JavaScript payloads can be used to detect vulnerabilities. We also enumerate some tools to use for an efficient analysis. We present detailed reasoning on what can be done to improve the security of a website in order to resist attacks, and we provide supportive examples. Then, we apply an ontology model against XSS attacks to strengthen the protection of a web application. However, we note that the existence of ontology does not improve the security itself, but it has to be properly used and should require a maximum of security layers to be taken into account.Keywords: cybersecurity, web application vulnerabilities, cyber threats, ontology model
Procedia PDF Downloads 164157 Semi-Supervised Learning Using Pseudo F Measure
Authors: Mahesh Balan U, Rohith Srinivaas Mohanakrishnan, Venkat Subramanian
Abstract:
Positive and unlabeled learning (PU) has gained more attention in both academic and industry research literature recently because of its relevance to existing business problems today. Yet, there still seems to be some existing challenges in terms of validating the performance of PU learning, as the actual truth of unlabeled data points is still unknown in contrast to a binary classification where we know the truth. In this study, we propose a novel PU learning technique based on the Pseudo-F measure, where we address this research gap. In this approach, we train the PU model to discriminate the probability distribution of the positive and unlabeled in the validation and spy data. The predicted probabilities of the PU model have a two-fold validation – (a) the predicted probabilities of reliable positives and predicted positives should be from the same distribution; (b) the predicted probabilities of predicted positives and predicted unlabeled should be from a different distribution. We experimented with this approach on a credit marketing case study in one of the world’s biggest fintech platforms and found evidence for benchmarking performance and backtested using historical data. This study contributes to the existing literature on semi-supervised learning.Keywords: PU learning, semi-supervised learning, pseudo f measure, classification
Procedia PDF Downloads 231156 The Quality and Management Development for Traditional Community Retailers in Samut Songkhram Province, Thailand
Authors: Suppara Charoenpoom
Abstract:
The purposes of this research were to investigate the level of consumers’ awareness of the traditional community retailers in terms of location, service quality, risk, shopping enjoyment, value for money, shopping satisfaction and intention to repurchase as well as to investigate the factors influenced the consumers’ repurchase in Samut Sonkhram Province, Thailand. The findings revealed that consumers had a high level of awareness in terms of location, and intention to repurchase. The factors influenced the consumers’ level of satisfaction included value for money, shopping enjoyment, and service quality. The factors of consumers’ level of satisfaction had an influence to the intention to repurchase. Moreover, the findings also revealed that the majority of respondents wanted traditional community retailers to continue to operate because of these reasons: close location, convenience, credit, as well as provide a place and time for community social gathering and activities.Keywords: quality management, service quality, traditional retailer, consumers’ awareness
Procedia PDF Downloads 382155 Determinants of the Welfare of Itinerant Palm Oil Marketers in Akwa Ibom State, Nigeria
Authors: Obasi Igwe Oscar, Udokure Ubong James, Echebiri Raphael Ndubuisi
Abstract:
The study examined the determinants of the welfare of itinerant palm oil marketers in Akwa Ibom State, Nigeria. Multistage sampling techniques were adopted to select 120 itinerant palm oil marketers for the study. Primary data were obtained using a structured questionnaire. Data were analyzed using the cost and returns formula and multiple regression model. Results showed that itinerant palm oil marketing was profitable and 57.39% efficient. The respondents' monthly expenditure of N111,787.90 on food and non-food items indicated that they live above the extreme poverty threshold of $2.15 per person per day, with a daily spending of over $2. Net income (P<0.05), age (P<0.01), educational level (P<0.01), household size (P<0.01), credit amount (P<0.01), market information (P<0.05), amount of tax paid (P<0.01) and the level of market participation (P<0.05) were the significant determinants of the welfare of itinerant traders in the study area. The study recommended that government and non-governmental organizations should make available marketing facilities and enhance transportation networks to reduce inefficiencies and lower transaction costs for itinerant palm oil traders in Akwa Ibom state.Keywords: determinants, welfare, itinerant, palm oil, marketers
Procedia PDF Downloads 8154 Development of Knitted Seersucker Fabric for Improved Comfort Properties
Authors: Waqas Ashraf, Yasir Nawab, Haritham Khan, Habib Awais, Shahbaz Ahmad
Abstract:
Seersucker is a popular lightweight fabric widely used in men’s and women’s suiting, casual wear, children’s clothing, house robes, bed spreads and for spring and summer wear. The puckered effect generates air spaces between body and the fabric, keeping the wearer cool in hot conditions. The aim of this work was to develop knitted seersucker fabric on single cylinder weft knitting machine using plain jersey structure. Core spun cotton yarn and cotton spun yarn of same linear density were used. Core spun cotton yarn, contains cotton fiber in the sheath and elastase filament in the core. The both yarn were fed at regular interval to feeders on the machine. The loop length and yarn tension were kept constant at each feeder. The samples were then scoured and bleached. After wet processing, the fabric samples were washed and tumble dried. Parameters like loop length, stitch density and areal density were measured after conditioning these samples for 24 hours in Standard atmospheric condition. Produced sample has a regular puckering stripe along the width of the fabric with same height. The stitch density of both the flat and puckered area of relaxed fabric was found to be different .Air permeability and moisture management tests were performed. The results indicated that the knitted seersucker fabric has better wicking and moisture management properties as the flat area contact, whereas puckered area held away from the skin. Seersucker effect in knitted fabric was achieved by the difference of contraction of both sets of courses produced from different types of yarns. The seer sucker fabric produce by knitting technique is less expensive as compared to woven seer sucker fabric as there is no need of yarn preparation. The knitted seersucker fabric is more practicable for summer dresses, skirts, blouses, shirts, trousers and shorts.Keywords: air permeability, knitted structure, moisture management, seersucker
Procedia PDF Downloads 315153 Characterization of Antibiotic Resistance in Cultivable Enterobacteriaceae Isolates from Different Ecological Niches in the Eastern Cape, South Africa
Authors: Martins A. Adefisoye, Mpaka Lindelwa, Fadare Folake, Anthony I. Okoh
Abstract:
Evolution and rapid dissemination of antibiotic resistance from one ecosystem to another has been responsible for wide-scale epidemic and endemic spreads of multi-drug resistance pathogens. This study assessed the prevalence of Enterobacteriaceae in different environmental samples, including river water, hospital effluents, abattoir wastewater, animal rectal swabs and faecal droppings, soil, and vegetables, using standard microbiological procedure. The identity of the isolates were confirmed using matrix-assisted laser desorption ionization-time of flight mass spectrophotometry (MALDI-TOF) while the isolates were profiled for resistance against a panel of 16 antibiotics using disc diffusion (DD) test, and the occurrence of resistance genes (ARG) was determined by polymerase chain reactions (PCR). Enterobacteriaceae counts in the samples range as follows: river water 4.0 × 101 – 2.0 × 104 cfu/100 ml, hospital effluents 1.5 × 103 – 3.0 × 107 cfu/100 ml, municipal wastewater 2.3 × 103 – 9.2 × 104 cfu/100 ml, faecal droppings 3.0 × 105 – 9.5 × 106 cfu/g, animal rectal swabs 3.0 × 102 – 2.9 × 107 cfu/ml, soil 0 – 1.2 × 105 cfu/g and vegetables 0 – 2.2 × 107 cfu/g. Of the 700 randomly selected presumptive isolates subjected to MALDI-TOF analysis, 129 (18.4%), 68 (9.7%), 67 (9.5%), 41 (5.9%) were E. coli, Klebsiella spp., Enterobacter spp., and Citrobacter spp. respectively while the remaining isolates belong to other genera not targeted in the study. The DD test shows resistance ranging between 91.6% (175/191) for cefuroxime and (15.2%, 29/191) for imipenem The predominant multiple antibiotic resistance phenotypes (MARP), (GM-AUG-AP-CTX-CXM-CIP-NOR-NI-C-NA-TS-T-DXT) occurred in 9 Klebsiella isolates. The multiple antibiotic resistance indices (MARI) the isolates (range 0.17–1.0) generally showed >95% had MARI above the 0.2 thresholds, suggesting that most of the isolates originate from high-risk environments with high antibiotic use and high selective pressure for the emergence of resistance. The associated ARG in the isolates include: bla TEM 61.9 (65), bla SHV 1.9 (2), bla OXA 8.6 (9), CTX-M-2 8.6 (9), CTX-M-9 6.7 (7), sul 2 26.7 (28), tet A 16.2 (17), tet M 17.1 (18), aadA 59.1 (62), strA 34.3 (36), aac(3)A 19.1 (20), (aa2)A 7.6 (8), and aph(3)-1A 10.5 (11). The results underscore the need for preventative measures to curb the proliferation of antibiotic-resistant bacteria including Enterobacteriaceae to protect public health.Keywords: enterobacteriaceae, antibiotic-resistance, MALDI-TOF, resistance genes, MARP, MARI, public health
Procedia PDF Downloads 144152 Perceived Effect of Livelihood Diversification on the Welfare of Rural Households in Niger State, Nigeria
Authors: Oladipo Joseph Ajayi, Yakubu Muhammed, Raufu Olusola Sanusi
Abstract:
This study determined the perceived effect of livelihood diversification on welfare of rural household in Niger state, Nigeria. Multi-stage sampling technique was adopted for sampling the respondents. Data used for the study were obtained from primary source. Structured questionnaire with interview schedule was administered to 180 randomly selected rural farmers in the study area. Descriptive statistics analysis and z-test statistics were used to analyse the data collected. The study revealed the mean age of the household to be 43 years, mean years of schooling was 8.5, mean household size was 6 people, mean farming experience of 17.5 years and mean farm size of 1.8 hectares. The effect of livelihood diversification revealed that livelihood diversification had positive and significant effect on food security (65.6%) and income generation (66.8%) in the study area. The major constraints to diversification in the study area were poor infrastructure, unavailability of credit and climatic risk and uncertainty. The study, therefore, recommended that rural household should be sensitised to diversify their income source into non-farm activities.Keywords: income, livelihood diversification , rural household, welfare
Procedia PDF Downloads 408151 Microfinance and Gender Empowerment Discourse: Rethinking Minimalist View of Microcredit Programmes
Authors: Thomas Yeboah
Abstract:
In recent times, micro-finance programmes targeting women have become the central means of donor poverty alleviation strategies. In view of the renewed focus on post-Millennium Development Goals (MDGs) poverty reduction strategies, there is the likelihood that funding might increase in the next coming decades to support different initiatives by donor agencies. In this paper, we critically examine the role of microfinance in shaping gender relations and empowerment outcomes of women. It is widely argued that providing and reaching out to women with credit methodologies serves as a means of increasing women’s bargaining power and challenging existing gender subordination thereby releasing them from power structures which dominate their lives. This paper cautions this view and instead show that the mainstream argument surrounding microfinance and gender empowerment is much complex than what the popular rhetoric preaches. Drawing on empirical cases on microfinance literature, we argue that lack of systematic strategy to incorporate men and the wider socio-cultural dynamics within which women’s lives are embedded radically constraints the empowerment potential of microcredit programmes and in some context may lead to unintended consequences for women.Keywords: microfinance, empowerment, women, men, gender relations
Procedia PDF Downloads 449150 Targeting the EphA2 Receptor Tyrosine Kinases in Melanoma Cancer, both in Humans and Dogs
Authors: Shabnam Abdi, Behzad Toosi
Abstract:
Background: Melanoma is the most lethal type of malignant skin cancer in humans and dogs since it spreads rapidly throughout the body. Despite significant advances in treatment, cancer at an advanced stage has a poor prognosis. Hence, more effective treatments are needed to enhance outcomes with fewer side effects. Erythropoietin-producing hepatocellular receptors are the largest family of receptor tyrosine kinases and are divided into two subfamilies, EphA and EphB, both of which play a significant role in disease, especially cancer. Due to their association with proliferation and invasion in many aggressive types of cancer, Eph receptor tyrosine kinases (Eph RTKs) are promising cancer therapy molecules. Because these receptors have not been studied in canine melanoma, we investigated how EphA2 influences survival and tumorigenicity of melanoma cells. Methods: Expression of EphA2 protein in canine melanoma cell lines and human melanoma cell line was evaluated by Western blot. Melanoma cells were transduced with lentiviral particles encoding Eph-targeting shRNAs or non-silencing shRNAs (control) for silencing the expression of EphA2 receptor, and silencing was confirmed by Western blotting and immunofluorescence. The effect of siRNA treatment on cellular proliferation, colony formation, tumorsphere assay, invasion was analyzed by Resazurin assay Matrigel invasion assay, respectively. Results: Expression of EphA2 was detected in canine and human melanoma cell lines. Moreover, stably silencing EphA2 by specific shRNAs significantly and consistently decreased the expression of EphA2 protein in both human and canine melanoma cells. Proliferation, colony formation, tumorsphere and invasion of melanoma cells were significantly decreased in EphA2 siRNA-treated cells compared to control. Conclusion: Our data provide the first functional evidence that the EphA2 receptor plays a critical role in the malignant cellular behavior of melanoma in both human and dogs.Keywords: ephA2, targeting, melanoma, human, canine
Procedia PDF Downloads 52149 Board Regulation and Its Impact on Composition and Effects: Evidence from German Cooperative Banks
Authors: Markus Stralla
Abstract:
This study employs a GMM framework to examine the impact of potential regulatory intervention regarding the occupations of supervisory board members in cooperative banking. To achieve insights, the study proceeds in two different ways. First, it investigates the changes in board structure prior and following to the German Act to Strengthen Financial Market and Insurance Supervision (FinVAG). Second, the study estimates the influence of Ph.D.Share, professional concentration and supervisory power on bank-risk changes in consideration of the implementation of FinVAG. Therefore, the study is based on a sample of 246 German cooperative banks from 2006-2011 while applying four different measures of bank risk, namely credit-, equity-, liquidity-risk, and Z-Score, with the former three also being addressed in FinVAG. Results indicate that the implementation of FinVAG results in (most likely unintentional) structural changes, especially at the expense of farmers, and affects all risk measures and relations between risk measures and supervisory board characteristics in a risk-reducing and therefore intended way. To disentangle the complex relationship between board characteristics and risk measures, the study utilizes two-step system GMM estimator to account for unobserved heterogeneity and simultaneity in order to reduce endogeneity problems. The findings may be especially relevant for stakeholders, regulators, supervisors and managers.Keywords: bank governance, bank risk-taking, board of directors, regulation
Procedia PDF Downloads 425148 Off-Farm Work and Cost Efficiency in Staple Food Production among Small-Scale Farmers in North Central Nigeria
Authors: C. E. Ogbanje, S. A. N. D. Chidebelu, N. J. Nweze
Abstract:
The study evaluated off-farm work and cost efficiency in staple food production among small-scale farmers in North Central Nigeria. Multistage sampling technique was used to select 360 respondents (participants and non-participants in off-farm work). Primary data obtained were analysed using stochastic cost frontier and test of means’ difference. Capital input was lower for participants (N2,596.58) than non-participants (N11,099.14). Gamma (γ) was statistically significant. Farm size significantly (p<0.01) increased cost outlay for participants and non-participants. Average input prices of enterprises one and two significantly (p<0.01) increased cost. Sex, household size, credit obtained, formal education, farming experience, and farm income significantly (p<0.05) reduced cost inefficiency for non-participants. Average cost efficiency was 11%. Farm capital was wasted. Participants’ substitution of capital for labour did not put them at a disadvantage. Extension agents should encourage farmers to obtain financial relief from off-farm work but not to the extent of endangering farm cost efficiency.Keywords: cost efficiency, mean difference, North Central Nigeria, off-farm work, participants and non-participants, small-scale farmers
Procedia PDF Downloads 359147 The Term Spread Impact on Economic Activity for Transition Economies: Case of Georgia
Authors: L. Totladze
Abstract:
The role of financial sector in supporting economic growth and development is well acknowledged. The term spread (the difference between the yields on long-term and short-term Treasury securities) has been found useful for predicting economic variables as output growth, inflation, industrial production, consumption. The temp spread is one of the leading economic indicators according to NBER methodology. Leading economic indicators are widely used in forecasting of economic activity. Many empirical studies find that the term spread predicts future economic activity. The article shortly explains how the term spread might predict future economic activity. This paper analyses the dynamics of the spread between short and long-term interest rates in countries with transition economies. The research paper analyses term spread dynamics in Georgia and compare it with post-communist countries and transition economies spread dynamics. In Georgia, the banking sector plays an important and dominant role in the financial sector, especially with respect to the mobilization of savings and provision of credit and may impact on economic activity. For this purpose, we study the impact of the term spread on economic growth in Georgia.Keywords: forecasting, leading economic indicators, term spread, transition economies
Procedia PDF Downloads 169146 Multi-Criteria Inventory Classification Process Based on Logical Analysis of Data
Authors: Diana López-Soto, Soumaya Yacout, Francisco Ángel-Bello
Abstract:
Although inventories are considered as stocks of money sitting on shelve, they are needed in order to secure a constant and continuous production. Therefore, companies need to have control over the amount of inventory in order to find the balance between excessive and shortage of inventory. The classification of items according to certain criteria such as the price, the usage rate and the lead time before arrival allows any company to concentrate its investment in inventory according to certain ranking or priority of items. This makes the decision making process for inventory management easier and more justifiable. The purpose of this paper is to present a new approach for the classification of new items based on the already existing criteria. This approach is called the Logical Analysis of Data (LAD). It is used in this paper to assist the process of ABC items classification based on multiple criteria. LAD is a data mining technique based on Boolean theory that is used for pattern recognition. This technique has been tested in medicine, industry, credit risk analysis, and engineering with remarkable results. An application on ABC inventory classification is presented for the first time, and the results are compared with those obtained when using the well-known AHP technique and the ANN technique. The results show that LAD presented very good classification accuracy.Keywords: ABC multi-criteria inventory classification, inventory management, multi-class LAD model, multi-criteria classification
Procedia PDF Downloads 871145 Developing a Risk Rating Tool for Shopping Centres
Authors: Prandesha Govender, Chris Cloete
Abstract:
Purpose: The objective of the paper is to develop a tool for the evaluation of the financial risk of a shopping center. Methodology: Important factors that indicate the success of a shopping center were identified from the available literature. Weights were allocated to these factors and a risk rating was calculated for 505 shopping centers in the largest province in South Africa by taking the factor scores, factor weights, and category weights into account. The ratings for ten randomly selected shopping centers were correlated with consumer feedback and standardized against the ECAI (External Credit Assessment Institutions) data for the same centers. The ratings were also mapped to corporates with the same risk rating to provide a better intuitive assessment of the meaning of the inherent risk of each center. Results: The proposed risk tool shows a strong linear correlation with consumer views and can be compared to expert opinions, such as that of fund managers and REITs. Interpretation of the tool was also illustrated by correlating the risk rating of selected shopping centers to the risk rating of reputable and established entities. Conclusions: The proposed Shopping Centre Risk Tool, used in conjunction with financial inputs from the relevant center, should prove useful to an investor when the desirability of investment in or expansion, renovation, or purchase of a shopping center is being considered.Keywords: risk, shopping centres, risk modelling, investment, rating tool, rating scale
Procedia PDF Downloads 110144 Uncertainty Evaluation of Erosion Volume Measurement Using Coordinate Measuring Machine
Authors: Mohamed Dhouibi, Bogdan Stirbu, Chabotier André, Marc Pirlot
Abstract:
Internal barrel wear is a major factor affecting the performance of small caliber guns in their different life phases. Wear analysis is, therefore, a very important process for understanding how wear occurs, where it takes place, and how it spreads with the aim on improving the accuracy and effectiveness of small caliber weapons. This paper discusses the measurement and analysis of combustion chamber wear for a small-caliber gun using a Coordinate Measuring Machine (CMM). Initially, two different NATO small caliber guns: 5.56x45mm and 7.62x51mm, are considered. A Micura Zeiss Coordinate Measuring Machine (CMM) equipped with the VAST XTR gold high-end sensor is used to measure the inner profile of the two guns every 300-shot cycle. The CMM parameters, such us (i) the measuring force, (ii) the measured points, (iii) the time of masking, and (iv) the scanning velocity, are investigated. In order to ensure minimum measurement error, a statistical analysis is adopted to select the reliable CMM parameters combination. Next, two measurement strategies are developed to capture the shape and the volume of each gun chamber. Thus, a task-specific measurement uncertainty (TSMU) analysis is carried out for each measurement plan. Different approaches of TSMU evaluation have been proposed in the literature. This paper discusses two different techniques. The first is the substitution method described in ISO 15530 part 3. This approach is based on the use of calibrated workpieces with similar shape and size as the measured part. The second is the Monte Carlo simulation method presented in ISO 15530 part 4. Uncertainty evaluation software (UES), also known as the Virtual Coordinate Measuring Machine (VCMM), is utilized in this technique to perform a point-by-point simulation of the measurements. To conclude, a comparison between both approaches is performed. Finally, the results of the measurements are verified through calibrated gauges of several dimensions specially designed for the two barrels. On this basis, an experimental database is developed for further analysis aiming to quantify the relationship between the volume of wear and the muzzle velocity of small caliber guns.Keywords: coordinate measuring machine, measurement uncertainty, erosion and wear volume, small caliber guns
Procedia PDF Downloads 145143 Maturity Transformation Risk Factors in Islamic Banking: An Implication of Basel III Liquidity Regulations
Authors: Haroon Mahmood, Christopher Gan, Cuong Nguyen
Abstract:
Maturity transformation risk is highlighted as one of the major causes of recent global financial crisis. Basel III has proposed new liquidity regulations for transformation function of banks and hence to monitor this risk. Specifically, net stable funding ratio (NSFR) is introduced to enhance medium- and long-term resilience against liquidity shocks. Islamic banking is widely accepted in many parts of the world and contributes to a significant portion of the financial sector in many countries. Using a dataset of 68 fully fledged Islamic banks from 11 different countries, over a period from 2005 – 2014, this study has attempted to analyze various factors that may significantly affect the maturity transformation risk in these banks. We utilize 2-step system GMM estimation technique on unbalanced panel and find bank capital, credit risk, financing, size and market power are most significant among the bank specific factors. Also, gross domestic product and inflation are the significant macro-economic factors influencing this risk. However, bank profitability, asset efficiency, and income diversity are found insignificant in determining the maturity transformation risk in Islamic banking model.Keywords: Basel III, Islamic banking, maturity transformation risk, net stable funding ratio
Procedia PDF Downloads 408142 Behind Egypt’s Financial Crisis: Dollarization
Authors: Layal Mansour
Abstract:
This paper breaks down Egypt’s financial crisis by constructing a customized financial stress index by including the vulnerable economic indicator “dollarization” as a vulnerable indicator in the credit and exchange sector. The Financial Stress Index for Egypt (FSIE) includes informative vulnerable indicators of the main financial sectors: the banking sector, the equities market, and the foreign exchange market. It is calculated on a monthly basis from 2010 to December 2022, so to report the two recent world’s most devastating financial crises: Covid 19 crisis and Ukraine-Russia War, in addition to the local 2016 and 2022 financial crises. We proceed first by a graphical analysis then by empirical analysis in running under Vector Autoregression (VAR) Model, dynamic causality tests between foreign reserves, dollarization rate, and FSIE. The graphical analysis shows that unexpectedly, Egypt’s economy seems to be immune to internal economic/political instabilities, however it is highly exposed to the foreign and exchange market. Empirical analysis confirms the graphical observations and proves that dollarization, or more precisely debt in foreign currency seems to be the main trigger of Egypt’s current financial crisis.Keywords: egypt, financial crisis, financial stress index, dollarization, VAR model, causality tests
Procedia PDF Downloads 81141 Connecting Critical Macro-Finance to Theories of Capitalism
Authors: Vithul Kalki
Abstract:
The mainstream political economy failed to explain the nature and causes of systemic failures and thus to compare and comprehend how contemporary capitalist systems work. An alternative research framework of Critical Macro-Finance (CMF) is an attempt to collaborate political theory with post-Keynesian economics with an objective to find answers to unresolved questions that emerged since the international financial crisis and repeated failures of capital systems. This unorthodox approach brings out four main propositions, namely : (a) that the adoption of American financial practices has anchored financial globalization in market-based finance; (b) that global finance is a set of interconnected, hierarchical balance sheets, increasingly subject to time-critical liquidity; (c) that credit creation in market-based finance involves new forms of money; and (d) that market-based finance structurally requires a de-risking state capable both of protecting systemic liabilities and creating new investment opportunities. The ongoing discussion of CMF literature is yet to be tested or even fully framed. This qualitative paper will critically examine the CMF framework and will engage in discussions aiming to connect the CMF with theories of capitalism in a wider context to bring a holistic approach for analyzing contemporary financial capitalism.Keywords: critical macro-finance, capitalism, financial system, comparative political economy
Procedia PDF Downloads 177140 Banking Performance and Political Economy: Using ARDL Model
Authors: Marwen Ghouil, Jamel Eddine Mkadmi
Abstract:
Banking performance is the pillar and goal of all banking activity and its impact on economic policy. First, researchers defined the principles for assessing and modeling bank performance, and then theories and models explaining bank performance were developed. The importance of credit as a means of financing businesses in most developing countries has led to questions about the effects of financial liberalisation on increased banking competition. In Tunisia, as in many other countries, the liberalization of financial services in general and of banks' activities has not ceased to evolve. The objective of this paper is to examine the determinants of banking performance for 8 Tunisian banks and their impact on economic policy during the Arab Spring. We used cointegration analysis and the ARDL Panel model, explaining using total assets, bank credits, guarantees, and bank size as performance drivers. The correlation analysis shows that there is a positive correlation relationship between total assets, bank credits, guarantees, and bank size and bank performance. Long-term empirical results show that bank loans, guarantees, bank size, and total assets have a positive and significant impact on bank performance. This means that bank credits, guarantees, bank size, and total assets are very important determinants of bank performance in Tunisia.Keywords: bank performance, economic policy, finance, economic
Procedia PDF Downloads 127139 Modeling the Philippine Stock Exchange Index Closing Value Using Artificial Neural Network
Authors: Frankie Burgos, Emely Munar, Conrado Basa
Abstract:
This paper aimed at developing an artificial neural network (ANN) model specifically for the Philippine Stock Exchange index closing value. The inputs to the ANN are US Dollar and Philippine Peso(USD-PHP) exchange rate, GDP growth of the country, quarterly inflation rate, 10-year bond yield, credit rating of the country, previous open, high, low, close values and volume of trade of the Philippine Stock Exchange Index (PSEi), gold price of the previous day, National Association of Securities Dealers Automated Quotations (NASDAQ), Standard and Poor’s 500 (S & P 500) and the iShares MSCI Philippines ETF (EPHE) previous closing value. The target is composed of the closing value of the PSEi during the 627 trading days from November 3, 2011, to May 30, 2014. MATLAB’s Neural Network toolbox was employed to create, train and simulate the network using multi-layer feed forward neural network with back-propagation algorithm. The results satisfactorily show that the neural network developed has the ability to model the PSEi, which is affected by both internal and external economic factors. It was found out that the inputs used are the main factors that influence the movement of the PSEi closing value.Keywords: artificial neural networks, artificial intelligence, philippine stocks exchange index, stocks trading
Procedia PDF Downloads 288138 From De Soto’s Solution to Urban Disaster: The Effects of Land Titling Policies on the Development of Cities of the Global South in the Case of Lima Peru
Authors: Jitka Molnarova
Abstract:
Based on De Soto’s idea that a formal land title can provide a secure home and access to credit to poor urban families, a large number of developing countries accepted the formalization of informal settlements as the ultimate solution for their housing crises and struggles with poverty. After two decades of implementation, very little is known about the effects this policy has on the quality of the neighborhoods it produces and on the development of cities in general. Using the capital of Peru -where the solution originated- as a case study, this paper illustrates the negative outcomes this policy has on urban development arguing that land titling encourages 1) expansion of the city often to areas of high physical risk, 2) production of precarious housing on unserviced land, and 3) practices of illegal land trafficking. The evidence is based on interviews with community leaders and officials working at the Cooperation for Formalization of Informal Property (COFOPRI), comparison of satellite images documenting the expansion of Lima in the past twenty years, and a technical evaluation of dozens of houses that have been or are in the process of being granted a land title.Keywords: COFOPRI, De Soto, housing policies, land titling, land trafficking, Lima, Peru, precarious housing, urban expansion
Procedia PDF Downloads 181