An Empirical Investigation of Reputation Loan Size Dynamics in Rural Credit Markets in Honduras

This paper examines the role of two types of reputation - borrower credit history and productivity - in disequilibrium supply and demand models of loan size dynamics in formal and informal credit markets. Using panel data on Honduran households, full- and partialinformation regime switching econometric models yield four principal findings: (1) credit contracts in the formal sector are largely collateral driven and not reputation driven; (2) the informal sector credit contracts are borrower reputation based; (3) the informal sector utilizes positive/negative credit histories in both markets to credibly reward/punish borrowers; and (4) technical efficiency has a positive impact in determining loan size in both sectors on the demand and supply side of the market.

Performance of Different Institutional Units in the Czech Republic and the Role of External Financing

The paper analyses the relationship between the financial structure of the different institutional units in the Czech Republic and their performance, by testing several theoretical hypotheses. It employs Data Envelopment Analysis to estimate separately corporate and individual farms' technical efficiency, and investigates the effect of indebtedness on efficiency in a second stage, accounting for potential endogeneity. No substantial differences were detected between individual and corporate farms. For both groups higher long-term indebtedness negatively affects farm performance (agency theory and adjustment hypothesis), while the latter is used for appraising loan applications (credit evaluation). Case studies to banks and farms confirmed these findings.corporate farms, credit, Czech Republic, individual farms, technical efficiency, Agribusiness,

Measuring efficiency of the Farm Credit System

The paper measures the U.S. Farm Credit System’s technical efficiency from 2000 to 2009 using a stochastic frontier production function model with quarterly unbalanced panel data. The paper's results suggest that the FCS has not efficiently utilized their inputs. On an average, the system realizes only 9.7% of their technical abilities in raising their loans, leases and investment. The efficiency of the whole system is estimated to slightly increase over time even during financial crisis period from 2007. Among the system, a significant difference in efficiency between the 5 Banks and the Associations has been found. On average, the Banks have higher technical efficiency of 62.4% compared to that of 7.7% of the associations. The efficiency of the latter increases by a small rate over time during 2004-2009 periods while efficiency of the former is more time-varying and experiences the opposite pattern. No evidence about the impact of financial crisis on the system efficiency was found.Farm Credit System, agricultural lenders, technical efficiency, financial crisis, stochastic frontier production function, financial reform, Agricultural Finance,

Factors Influencing Technical Efficiencies among Selected Wheat Farmers in Uasin Gishu District, Kenya

This study examined the factors influencing technical efficiency in wheat farming in Kenya using a stochastic frontier production function in which technical inefficiency effects were assumed to be functions of both socioeconomic characteristics of the farmer and farm-specific characteristics. The paper used random sampling to interview 160 farmers comprising 97 large-scale farmers and 63 small-scale farmers. The results revealed existence of significant levels of technical inefficiencies in wheatproduction, especially among the large-scale farmers. The study found that the magnitude of technical efficiency varied from one farmer to another and ranged from 48.9% to 95.1%, with a mean of 87.2%. This implied that farmers lost close to 13% of the potential output to technical inefficiencies. There was variation depending on the size of farm with small-scale farmers attaining higher technical efficiency than the large-scale farmers. The main factors that influenced the degree of inefficiency were education levels, access to credit, and ownership of the capital equipment. Higher levels of education (12 years and above or secondary and above) significantly reduced inefficiency as did access to credit facilities and owning the farm equipment. The study recommended that farmers be educated on the use of better techniques such as use of certified seeds and application of recommended levels of fertilizer.

Credit Risks in Banking of the Countries in Transitional Phase and possible Ways of Their Reduction in Croatian Banking System

Practically, there is no human activity without being connected with some form of risk. A complexity of the activity is in a close connection with the risk level and, as a rule, the greater complexity leads to a greater risk. The importance of risk is stressed to a large extent in some sectors, such as financial institutions, especially banks. Risk is not a unique category. The most represented type of risk in credit is a credit risk. It is possible to divide factors of risk emergence and defining, their reduction and control, into following: organizational, cognitive, and technical. A time gap between decision-making and investment influences the size of a credit risk. The length of credit structure influences the risk. The cognition of debtor's debt servicing potential, methods of coverage credit risk and indicators of credit risk growth are prime movers in risk management. The optimization of risk has its positive effect on the total economic efficiency, prevents negative allocation of resources into marginal and unprofitable programs. At the same time, the credit risk size depends on total macroeconomic moves and institutional conditions. Internationalization of financial and credit courses, as a general tendency, especially influences countries in transition.Credit, credit risk, credit rating, transition, banking, macroeconomic stability, institutionalization, internationalization

Academic Self-Concept of Dual Credit Secondary Career Technical Education Students

Dual credit continues to expand in approach, including a single course, multiple courses, up to associate degree offerings embedded in high schools, career technical education (CTE) programs, and located in a range of secondary and postsecondary locations. As of the 2010–2011 school year, 82% of all public secondary schools had students enrolled in dual credit courses (U. S. Department of Education, 2013). In the 2016–2017 school year, 73% of CTE courses of study included both high school and postsecondary credit (U.S. Department of Education, 2018). Existing dual credit research focuses heavily on academic impact, college credit, and continuation, along with degree completion rates. CTE, under the Carl D. Perkins Career and Technical Education Act of 2006, is required to prepare students for both college and career. The current study adds to the limited body of research in career technical education dual credit programs. The purpose of this quantitative study was to examine data connected to the possible impact of dual credit on the academic self-concept of career technical education students in the state of Vermont. The research used a survey to collect data from 11th- and 12th-grade students enrolled in dual credit CTE programs in six CTE centers across the state of Vermont. Results showed no significant difference in academic self-concept between CTE students taking dual credit and CTE students not taking dual credit

Credit risk management and financial stability.

The International Banking and Finance Institute (IBFI) of the Banque de France organised its sixth International Monetary Seminar on the subject of “Credit risk management and financial stability” from 7 to 11 June 2004. This seminar, opened by Governor Christian Noyer, brought together forty five representatives from central banks in developed and emerging countries and from international organisations (such as the Bank for International Settlements and the European Central Bank), as well as twenty speakers from central banks, international institutions and the private sector. The first two days of the seminar were devoted to conferences on: • risks and sources of macro-financial vulnerability, the latest developments on credit risk transfer markets and the presentation of the findings of the cross-sectoral survey on credit derivatives in France; • the technical, financial and legal aspects of securitisation and credit risk management; • the presentation of the French and European experiences with respect to the role of central banks in rating companies and their contribution to financial stability; • bad debts and their impact on financial stability (case of Japan); • Basel II, a prudential framework which better reflects credit risk, and the effect of ratings on market dynamics; • lastly, the macro-financial consequences of risk transfers from the perspective of financial interdependence. Over the next two days, participants attended two workshops on the subjects of “Basel II, credit risk provisioning and accounting standards” and “Credit risk management and its macro-financial consequences”. These gave rise to intensive and fruitful discussions on the following four points: 1. identification of the sources of risk or financial vulnerability 2. credit risk assessment 3. credit risk management 4. implications for economic policy This article summarises the debates held in the workshops and the round table discussions on the last day.

Technical Guide for the Analysis of Microenterprise Financial Institutions

The purpose of this technical guide is to provide a standard format for the analysis of institutions that provide financial services to the microenterprise sector. The technical guide outlines the appropriate techniques and scope of analysis for evaluating and designing programs of support to specialized financial institutions. The analytical techniques presented in this guide are structured to facilitate the process of institutional analysis and project design represented in the diagram below. The analytical framework applied in this technical guide is comprised of two basic components. The first part of the analysis, described in chapters 1 through 5, is dedicated to deriving a series of quantitative performance indicators that measure the performance of the institution. The investigation begins with an analysis of financial performance in order to derive general indicators regarding the sustainability of the institution. Credit operations are then analyzed in order to identify sources of inefficiency. The investigation concludes with an assessment of the impact of the credit services on the institution's clients.Social Development, Financial Sector, Microbusinesses & Microfinance, Microenterprise Finance Institutions

Technical Change and the Structure of Informal Credit Markets in Philippine Agriculture

The role of informal credit markets in the promotion of new technology has become significant given the shortcomings of the formal credit sector. This paper examines the impact of technical change on the structure of informal credit markets in the Philippine rice and corn sectors. It also investigates how technical change has affected both the debt burden and repayment capacity of borrowers. The findings in this paper have sizeable impact on the spectrum of policy issues.agriculture sector, technical efficiency, credit market

Technical Change and the Structure of Informal Credit Markets in Philippine Agriculture

The role of informal credit markets in the promotion of new technology has become significant given the shortcomings of the formal credit sector. This paper examines the impact of technical change on the structure of informal credit markets in the Philippine rice and corn sectors. It also investigates how technical change has affected both the debt burden and repayment capacity of borrowers. The findings in this paper have sizeable impact on the spectrum of policy issues.agriculture sector, technical efficiency, credit market