An Introduction to Financial Markets and Institutions

Factors Affecting Loan Supply Behavior At The Sharia Business Unit Of Bank Sulselbar

“…In conventional banks, this relationship has been noted by literature (Burton et al, 2003;Dell"Ariccia and Marquez, 2003;Eickmeier et al, 2008;and Blanchard, 2003). In sharia banks, this positive relationship is also found (e.g.…”

“…Several studies employ economic condition as measure using various indicators such as inflation, interest and exchange rate, the balance of payment, and many others, which generally provide broad measurements (Burton et al, 2003). This study focuses a certain region in Indonesia; hence, GRDP is considered the most appropriate measurement to reflect the regional economic condition (Burton et al, 2003). we narrow down economic condition into the regional economic condition and define it as the degree of regional economic outlook in a certain area of a city or regency within a specific period of time.…”

Risk Management in Banking Sector: Empirical Data from Commercial Banks in Kosovo

“…If a negative spread continues, the institution will face bankruptcy. To avoid this disaster, financial managers should carefully evaluate and manage the default risk (Burton, Nesiba, & Brown, 2015).…”

Determinant Of Loan Supply Behavior : The Case Of Regional Development Banks In East Indonesia

“…Several studies employ economic condition as measure using various indicators such as inflation, interest and exchange rate, the balance of payment, and many others (Burton et al, 2001), which generally provide broad measurements. This study focuses a certain region in Indonesia; hence, GRDP is considered the most appropriate measurement to reflect the regional economic condition (Burton et al, 2003). we narrow down economic condition into the regional economic condition and define it as the degree of regional economic outlook in a certain area of a city or regency within a specific period of time.…”

“…When GDP rises, for example, there will be an increase in demand for loans from firms and household because GDP has improved the business outlook and household income (Burton et al, 2003) and likewise stimulates banks to provide more loans (Dell'Ariccia and Marquez, 2003;Eickmeier et al, 2008;and Blanchard, 2003) as they believe that borrowers become prospects, more willing to borrow and have the capability to borrow. on the other hand, when downturn economy occurred as indicated by decrease in GDP, the demand for funds decrease, and banks also have a tendency to face some external and internal obstacles, such as liquidity problems (Woodford, 2010), default rate (Keeton, 1999), tight regulation from central bank (Du and Kuttner, 2010;and Burton et al, 2003), and adverse selection problems (Gavin and Hausman, 1998;and Lowe and Rohling, 1992). Hence, banks' liability account could decline during the economic downturn, which in turn decreases loan supply decisions.…”