Debt maturity dispersion and the cost of bank loans

Chiu, Wan-Chien; King, Tao Hsien Dolly; Wang, Chih Wei

doi:10.1016/j.jcorpfin.2021.102049

Cited by 15 publications

(10 citation statements)

References 46 publications

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“…These results show that the cost of borrowing charged to customers is heavy enough to be quite burdensome for customers. This may be because financing customers compare the cost of loans in other banking institutions, so they feel the cost of borrowing is more expensive so that the financing customer is not satisfied with the amount of the loan fee (Chiu et al, 2021). This is evidenced by the results of calculations obtained where t research amounted to -0.081 < t table 2,003.…”

Section: Discussionmentioning

confidence: 99%

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Innovation of Electronic-Based Multipurpose Credit Services to Improve Customer Satisfaction Through Loan Fee : A Study on Bank Jatim - Malang

Orbaningsih

Gitaria

Budi

2022

ebasr

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The competition of financial services business is getting higher and encourages banks to optimize their efforts to reach as many prospective customers as possible. One of the efforts made is to update innovative banking credit services through the development of an electronic-based multipurpose credit service system. This research aims to find out whether the quality of service, product quality, and loan fee, affect customer satisfaction. This research uses a quantitative approach, data collection using questionnaires distributed to 150 customers of Jatim bank. Data analysis uses path analysis. This research found that The Quality of Service affects Customer Satisfaction but the Quality of Multipurpose Credit electronic application products does not significantly affect customer satisfaction; Quality of Service and Product Quality of Multipurpose Credit electronic application affects Customer Satisfaction through Loan Fees. This research has the implication that innovation policies on multipurpose credit services and borrowing costs are major factors that can improve customer satisfaction.

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Section: Discussionmentioning

confidence: 99%

“…c. Loan Fee Bank is a financial institution that has the main role in providing credit and other services (Azad et al, 2020). Therefore, banks have the lending policy including determining the interest rate of loans (Chiu et al, 2021). Although there are differences between banks and each other.…”

Section: B Customer Satisfactionmentioning

confidence: 99%

Innovation of Electronic-Based Multipurpose Credit Services to Improve Customer Satisfaction Through Loan Fee : A Study on Bank Jatim - Malang

Orbaningsih

Gitaria

Budi

2022

ebasr

View full text Add to dashboard Cite

show abstract

“…[13] offered proof that carbon risk affects bank lending rates via two essential channels: a company's profitability and earnings volatility. Debt maturity dispersion is crucial for the borrowers in lowering rollover risk, which in turn lowers loan costs [14]. Changes in borrowers' credit ratings may alter the risk weights on bank loans under regulations requiring ratings-contingent capital, which may have an immediate impact on the capital requirements of lending banks and the cost of the bank's financial intermediation [15].…”

Section: Introductionmentioning

confidence: 99%

The Role of Cost of Loan in Banking Loan Dynamics: Bifurcation and Chaos Analysis

Ansori

Khabibah²

2022

BAREKENG: J. Math. & App.

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The gradient adjustment process is used to create a dynamic model of banking loan. The sign of the loan’s marginal profit determines how much money will be loaned in the future. In this research, using bifurcation theory, we investigate the cost of loan in the dynamics of a bank’s loan. The results of the analysis indicate that the stability of the loan equilibrium might be impacted by the cost of loan. Loan equilibrium may become unstable through transcritical bifurcation if the cost of the loan is sufficiently high. The loan equilibrium may become unstable through flip bifurcation and path to chaos, however, if the cost of loan is too low. If the cost of loan lies between the bifurcation values, the loan equilibrium is stable. The numerical simulations back up these conclusions. Additionally, we display the Lyapunov exponent graph, which shows the presence of chaos, and the chaotic loan graph, which is sensitive to the initial condition.

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“…[13] provided evidence that the cost of bank loans is influenced by carbon risk through two fundamental channels: a company's profitability and earnings volatility. For the borrowers, debt maturity dispersion is essential in reducing rollover risk, which in turn lowers loan costs [14]. Under ratings-contingent capital regulation, changes in borrowers' credit ratings may change the risk weights on bank loans, which might have an immediate effect on the capital needs of lending banks and the cost of financial intermediation of the bank [15].…”

Section: Introductionmentioning

confidence: 99%

Analysis of Banking Deposit Cost in the Dynamics of Loan: Bifurcation and Chaos Perspectives

Ansori

Hariyanto²

2022

BAREKENG: J. Math. & App.

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A dynamic model of banking loan based on the gradient adjustment process is presented. The amount of loan that will be channeled in the future depends on the sign of the marginal profit of loan. In this paper, we study the deposit cost in the dynamics of a bank’s loan using bifurcation theory. The analysis shows that the deposit cost can affect the stability of loan equilibrium. If the deposit cost is too high, then the loan equilibrium can lose its stability trough transcritical bifurcation. Meanwhile, if the deposit cost is too low, then the loan equilibrium may lose its stability via flip bifurcation and road to chaos. The loan equilibrium stable if the deposit cost is in between the bifurcation values. These findings are confirmed by the numerical simulations. In addition, we present the graph of Lyapunov exponent to see the existence of chaos and the graph of chaotic loan that is sensitive to the initial condition.

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Debt maturity dispersion and the cost of bank loans

Cited by 15 publications

References 46 publications

Innovation of Electronic-Based Multipurpose Credit Services to Improve Customer Satisfaction Through Loan Fee : A Study on Bank Jatim - Malang

Innovation of Electronic-Based Multipurpose Credit Services to Improve Customer Satisfaction Through Loan Fee : A Study on Bank Jatim - Malang

The Role of Cost of Loan in Banking Loan Dynamics: Bifurcation and Chaos Analysis

Analysis of Banking Deposit Cost in the Dynamics of Loan: Bifurcation and Chaos Perspectives

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