Competition and stability in the credit industry: banking vs. factoring industries

Over the last decade, most credit-industries registered a decline in lending volumes, while factoring industries instead registered a substantial growth in terms of turnover. Surprisingly, only a handful of papers so far investigate factoring companies. Do factoring firms display the same stability levels of banks? Is the competition similar in factoring and banking industries? Is the relationship between competition and stability the same in these industries? Focusing on Italy (one of the largest factoring and banking markets in Europe) and using a unique dataset, we show three main results: factoring companies are (on average) more stable than banks; 2) the stability of factoring companies increase when competition declines (competition-fragility view); 3) the competition-fragility view is weaker in the factoring industry than in the banking industry. Our findings indicate that competition in the Italian credit industry was greater in factoring than in banking

Households, Financial Distress, and Predatory Lending: an Experimental Study

A substantial part of households and micro enterprises, particularly in developing countriesincluding Indonesia, did not have access to formal financial institutions which thenlead them to borrow money from illegal loan providers. Using an experimental study, wetested whether predatory loan, an illegal short-term loan with high interest rate, waspreferable or not by comparing with pawnshop loan, bank loan and household's limitedsaving when households confront with financial distress. We divided the participantsinto three groups: lower low, low, and upper low income. We found that predatory loanwas preferable especially for lower low and low income group. Result also confirmedthat even if the predatory loan charge was increased, the lower low- and low-incomegroups still prefer to ease their financial distress through predatory loans. Moreover, thelonger the duration of the predatory loan, the higher its probability to be chosen as afunding source in times of household financial distress

Islamic Fintech, blockchain and crowdfunding: Current landscape and path forward

The new age Fintech-driven innovative financial services started with the fourth industrial revolution and COVID-19 has stimulated supreme innovation in the global financial services industry. It is the young and millennial population driving these innovations and startups are responding, as there are more than 15,000 startups and global Fintech-based transaction crossed $6.308 Billion by the year 2020. Islamic finance industry has experienced an unprecedented growth, partly due to incremental investment in Fintech-based financial intermediation. Two most commonly cited high growth areas for Islamic finance lie within blockchain and crowdfunding. This study provides an advanced overview of the Islamic Fintech, blockchain and crowdfunding; their current landscape; and path forward. We discuss opportunities for Islamic financial institutions and a clear roadmap to capitalize on those opportunities

Etikonomi : jurnal ekonomi volume 21 (1) 2022

ii, 212 hlm, 29,5 x 21 c