The primary objective of the study was to develop a model which allowed banks to measure home loan risk and determine prices accordingly. A survey among banks revealed: 1. belief that the home loan market is more risky than 5 years ago 2. belief that lending in the "black" market is riskier than lending in the "white" market 3. no model is used which allows risk-measurement for the purpose of home loan pricing 4. mixed feeling as to the value of the proposed model - value, to a large extent, would depend on flexibility. A practical, flexible model has been developed which allows: 1. risk classification of loans in terms of geographical areas, product/client characteristics, and loan performance 2. risk measurement in terms of potential losses relating to each loan category 3. determination of appropriate pricing levels for each risk category. / Department of Economics / M. Com. (Accounting )

Our law recognises two types of loans, namely a loan for use (commodatum) and a loan for consumption (mutuum)'. In a loan for use something is delivered for use by a borrower without reward, and the borrower is obliged to return the same thing he received on loan. For example, a person may lend another person an asset of his, and when the recipient has finished using that asset the identical asset in the same condition as received, is to be returned to the lender. In a loan for consumption one or more units of some fungible thing are delivered to the borrower. The borrower may consume what has been received but is bound to return the same number of units of the type of the thing borrowed. In constrasting a commodatum with a mutuum, it can be seen that a lender ·in the first instance retains ownership of the asset loaned, whereas in the second, ownership is passed to the borrower, who undertakes to repay the loan by delivering things of an identical quality and quantity as those borrowed. Thus, an essential characteristic of a loan of money is that the lender is either the owner of the funds advanced, or is authorised to make the loan by the owner. Once delivery has taken place to the borrower a contract can probably be said to be binding. 2 Thus, a contract of loan cannot be said to be binding by part performance as, in mutuum the only person bound is the person who received a service by the handing over of the money in question.

There are many channels that the Fed uses to transmit monetary policy, bank lending channel being one of them. The lending view focuses on the potential fluctuations in loan supplied by banks have on aggregate activity due to a fall in Fed Reserves. This thesis investigates the significance of the bank lending channel because of its important effect on investment (and consequently, aggregate output). In addition, Institutional Memory, deteriorating memory in loan officers causing more loans to be processed at the top of the business cycle (Berger and Udell, 2002) is tested on Core loans using 4 lags (1 year) to find out if bank lending behavior exists. Using Core loans (Commercial and Industrial, Real Estate, and Consumer loans) of commercial banks for the United States over a nineteen year period (1985-2004) results find significant evidence in the bank lending channel through Commercial & Industrial, and Real Estate loans. Firstly, through a correlation computation, it was found that Core loans were procyclical with aggregate output (GDP). Analyzing the [ cyclical] movements of Core loans around their trends with respect to Business cycle peaks, troughs, and GDP, it was found that Commercial & Industrial, and Real Estate loans provided supporting evidence on procyclical movements with the economy, implying the connection of the Federal Reserve and the economy through the bank lending channel is more effective through the aforementioned loans. Finally, four periods (1 year) in lags were used in autocorrelations to test for Institutional Memory. The computations find that Real Estate loans have a one year memory. This means that, for instance, if a recession were occurred today, Real Estate loans will not be affected until one year from today.

by Mak Kwai-ming, Simon [and] Lam Hing-wai, Johnny. / Bibliography: leaves 79-80 / Thesis (M.B.A.)--Chinese University of Hong Kong, 1984

Thesis (MBA)--Stellenbosch University, 2002. / ENGLISH ABSTRACT: Start-ups, especially those established out of unemployment, and existing micro businesses experience major difficulties in obtaining funds, both in the start-up or expanding process, around the world. Most entrepreneurs in start-up organisations do not have a credit history, do not possess capital or traditional collateral and lack managerial experience and qualifications. Because mainstream banks perceive them as being too small, new and risky, the required capital amounts are insufficient to cover the banks expenditures and the loan cannot be granted. The end result is that the entrepreneurs remain unemployed and cannot receive investment, which forces them to close their businesses. The banks are unable to prove their creditworthiness in the traditional way and cannot comprehend the entrepreneurs' intentions. In order to create securities and overcome this information gap microlending plays an increasingly significant role. It focuses on people with financial difficulties who are excluded from the traditional capital market. With its innovative methods of creditworthiness assessment, like peer lending, staggered loans and decreasing interest rates, an incentive system is implemented which substitutes collateral and motivates the borrower to repay the loan as scheduled. The borrowers are enabled to invest and start or expand their businesses. The living, income and education standards of people who live in South Africa, particularly in townships, are equal to conditions of a developing country. The existing infrastructure, economical and political situation, on the other hand, would rather classify South Africa as a developed country. Because of this ambivalence it is questionable whether the innovative creditworthiness assessment methods applied in developed countries like those in Europe are applicable in such an environment. In order to evaluate the applicability, the study explains what microlending is and shows its origin, characteristics, creditworthiness assessment methods, differences to traditional banks and other peculiarities. An assessment follows of how three different European microlending organisations, the so-called Microfinance Institutions, work in detail. The self-sufficient and best-practice performing Fundusz Micro in Poland, the French socially aligned Association pour Ie droit a I' initiative Economique and the German as an incubator performing Siebte Saule have been chosen. Results of a survey across Europe will provide further information on how the majority of European Microfinance Institutions have implemented their creditworthiness assessment methods before presenting the South African microlending sector. In conclusion, the applied methods in Europe are discussed in the framework of South African market; considering social, cultural and economical conditions. As assumed, the methods are applicable in general but have to be adjusted in order to be able to provide opportunities to the poorest people. / AFRIKAANSE OPSOMMING: 'Start Ups', veral die wat gestig is waar daar groot werkloosheid heers, asook bestaande mikro besighede ondervind groot probleme in die verkryging van fondse, beide in die 'start-up en uitbreidingsfase. Dit is 'n verskynsel wat dwars oor die wêreld voorkom. Meeste entrepreneurs in 'start up' organisasies het nie die kredietgeskiedenis, nodige kapitaal, tradisionele sekuriteit en/of bestuurservaring en kwalifikasies nie. Kommersiële banke beskou sulke firmas as te klein, en nuut met 'n te hoë risiko aan hulle verbonde omdat die benodigde kapitaal te min is om selfs die bank se uitgawes of die lening te dek, wat beteken dat die entrepeneurs dan werkloos bly of nie kan investeer nie. As gevolg daarvan moet hulle dan hulle besighede sluit. Die Banke kan nie die kredietwaardigheid van die entrepeneurs met tradisionele metodes bewys nie, en kan ook nie die intensies van die entrepeneur bepaal nie. Ten einde die gaping in die mark te vul vir sekuriteite en om die informasiegaping te oorkom, het mikrofinansiering 'n groter rol om te speel. Dit fokus op mense in moeilikheid, wat uitgesluit is van die tradisionele kapitaalmark. Met nuwe innoverende metodes van kredietwaardigheid opsomming, soos 'peer lending', 'staggered loans' en verminderende kredietkoers, is daar 'n sisteem geimplementeer wat sekuriteit vervang en die kredietopnemer motiveer om sy lenings terug te betaal soos geskeduleer. Die kredietopnemer kan dan begin investeer of sy besigheid vergroot. Die lewens en opvoedkundige standaard, inkomste en die armoede van die mense wat in Suid Afrika leef, veral in plakkersdorpe, is soortgelyk aan die omstandighede in ontwikkelende lande. Die huidige ekonomiese infrastruktuur en die politieke situasie aan die ander kant laat Suid Afrika weer kwalifiseer as 'n ontwikkelde land. Weens hierdie ambivalensie is dit te bevraagteken of die nuwe innoverende kredietwaardigheid evalueringsmetodes van toepassing is op ontwikkelende lande in vergeleke met Europese lande waar dit wel onder sulke omstandighede toepaslik is. Om te bepaal of dit van toepassing gemaak kan word op SA omstandighede, verduidelik die studie onder andere wat mikrofinansiering is, asook die oprigting, eienskappe, kredietwaardigheid evalueringsmetodes, en hoe dit van tradisionele banke verskil. Vervolgens word daar dan gekyk hoe drie verskillende Europese mikro banke, die sogenaamde Mikrofinansierders Instansies te werk gaan. Die 'self - sufficient' en beste praktyk word getoets met Fundusz Micro in Pole, die Franse sosialistiese Association pour le droit a I' initiative Economique en die Duitse Siebte Saute. Die resultate van 'n sensus oor Europa sal meer informasie verskaf oor hoe die meerderheid van Europese Mikrofinansierders hulle kredietwaardigheidstoetse implementeer het voor die Suid Afrikaanse sektor voorgestel word. Ten slotte word die toegepaste metodes in Europa bespreek as uitgangspunt vir die Suid-Afrikaanse mark, en daarmee word ook sosiale, kulturele faktore en ekonomiese omstandighede in ag geneem. Daar word ook aangeneem dat die metodes aangepas sal moet word om kanse aan die armste mense in Suid-Afrika te verskaf.

Call number: LD2668 .T4 1964 R31 / Master of Science

This study intends to assess the impact of reducing or restricting loan disbursement on the performance of banks in Ethiopia.

This study intends to assess determinants of nonperforming loans. The mixed research approach was adopted for the study. Survey was conducted with professionals engaged in both private and state owned Banks in Ethiopia holding different positions using a self administered questionnaire. In addition, the study used structured review of documents and records of banks and in-depth interview of senior bank officials in the Ethiopian banking industry. The findings of the study shows that poor credit assessment, failed loan monitoring, underdeveloped credit culture, lenient credit terms and conditions, aggressive lending, compromised integrity, weak institutional capacity, unfair competition among banks, willful default by borrowers and their knowledge limitation, fund diversion for unintended purpose, over/under financing by banks ascribe to the causes of loan default.

Thesis (MDF)--Stellenbosch University, 2011. / ENGLISH ABSTRACT: A sound and favourable financial climate is necessary for any forward-looking economy to thrive. This, amongst others, includes the extent to which the commercial banks are able to discharge their intermediating role in the demand and supply of credit necessary to sustain commercial businesses. Indeed, in the last decade, the Nigerian banking industry has witnessed swings with the attendant effects on the business community. One of the downsides has been the incidence of loan default which led to many banks recording astronomical levels of bad loans in their 2008 financial reports. The drastic measures taken by the Central Bank of Nigeria of relieving eight CEOs of their jobs in September 2009 further highlights the import of this subject matter. This paper gives an overview of the concept of loan default in Nigerian commercial banks ranging from the causes to the remedies currently in place to checkmate it. A field survey on loan officers, credit analysts and credit risk managers in some select banks was carried out. The findings reveal that the banks have a rather cautious approach to lending with certain classes of loans classified. Causal factors leading to loan delinquencies categorised into environmental, bank specific and borrower specific factors were analysed to have contributed equally to causing loan default in Nigeria. Lastly, the regression results indicated that there was a significant relationship between measures adopted by the banks in the face of increa

published_or_final_version / abstract / Real Estate and Construction / Master / Master of Philosophy