Loan Repayment Performance in Community Development Finance Institutions in the UK

Derban, William K.; Binner, Jane M.; Mullineux, Andy

doi:10.1007/s11187-004-6483-y

Cited by 62 publications

(53 citation statements)

References 7 publications

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“…The predictor variables were chosen according to their importance to the repayment process. Results of many studies investigating repayment performance considered these factors critical in determining the credit agency's repayment performance level (Yasir et al, 2012;Greenbaum & Thakor, 1995;Hulme & Mosley, 1996;Derban et al, 2005). The variables considered in our study include the volume of loans borrowed from the ACC (X1); the volume of loans repaid to the ACC including ACC profits (X2); the number of borrowers (X3); the number of ACC staff members (X4), the borrower's age (X5), and the borrowers' farming experience (X6).…”

Section: Analytical Frameworkmentioning

confidence: 99%

Loan Repayment Performance of Public Agricultural Credit Agencies: Evidence from Jordan

AL-Sharafat¹,

Qtaishat²,

Majdalawi³

2013

JAS

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The agricultural production process in many developing countries has been negatively impacted by poor loan repayment. Most of public credit agencies in such countries suffer from this critical problem. This study aimed at evaluating the loan-repayment performance of public agricultural credit agencies. The Agricultural Credit Cooperation (ACC) in Jordan was chosen to be investigated. To achieve its goals, the study delved into the determinants of loan-repayment performance among ACC borrowers. Data from ACC sources for the period of Financial Year 1960 to Financial Year 2011 (52 years) were analyzed. Simple descriptive statistics tests and regression techniques were conducted. Factors related to the accessibility of farmers to credits, to the collection performance of ACC, and to the administration performance of ACC were included in the analysis. The results of the study revealed that the repayment rate of the investigated public credit agency (ACC) was 0.92, indicating a high level of repayment performance and a low default rate (0.08). The positive effects of the volume of loans borrowed, volume of loans repaid number of borrowers, number of credit agency staff, and borrower experience were the most important factors related to this result. Sufficient and strict controls as well as monitoring are required. Outreach to beneficiaries should be improved to enhance repayment performance. To avoid the burden of provisioning on agricultural credit agencies, legal actions and guarantees should be taken against loans defaulters. Introducing a reward system for those individuals who pay on time will be helpful in enhancing repayment performance.

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Section: Analytical Frameworkmentioning

confidence: 99%

Loan Repayment Performance of Public Agricultural Credit Agencies: Evidence from Jordan

AL-Sharafat¹,

Qtaishat²,

Majdalawi³

2013

JAS

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“…Nicholls (2010) notes that despite growing international policy interest in social investment, with the development of a considerable and fast growing grey literature (Bank of England 2003;HM Government 2011;Carrington 2005;J.P.Morgan 2010;Monitor Institute 2011), it has failed to attract much academic analysis or research. Exceptions to this include Nicholls' own work (Nicholls 2009; which has sought to conceptualise the social investment field and better define social entrepreneurship, community finance including institutional measures (GHK 2010;Affleck and Mellor 2006;Derban et al 2005;Pollinger et al 2007), the financial exclusion of businesses and individuals (Fuller and Mellor 2008), and the measurement of social and financial returns (Nicholls 2009;Arvidson et al 2011). Indeed, the fluidity and general pace of change around social investment has probably hampered the emergence of a body of academic research.…”

Section: The Emergence Of Social Investment and The Policy Responsementioning

confidence: 99%

Understanding social investment policy: evidence from the evaluation of Futurebuilders in England

Wells¹

2012

volunt sect rev

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Abstract:The concept of social investment has attracted interest from policy makers, financial markets and not for profit organisations. It is an emergent notion which is multifaceted and includes different market forms, policy responses, and institutional configurations. There is relatively little empirical evidence on the design, implementation and impacts of the various initiatives which have been perceived as falling within the field of social investment. This paper begins to address this gap. It draws on the national evaluation of Futurebuilders in England which was undertaken between 2005 and 2010. At the time Futurebuilders was one of the largest examples of a public policy initiative to support social investment; based on a policy model of government seeking to promote the use of loan funding to third sector organisations as part of a wider agenda of expanding the sector's role in the delivery of public services. The paper explores the effects of the programme on the third sector, on public service delivery and on service users. In conclusion the paper challenges some of the assumptions of this policy model, as well as the potential for 'impact investing' to become a framework for welfare provision.

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“…They applied a comparative analysis of the determinants of the repayment performance and of loan size to make policy recommendations on the allocation of loans by MFIs. Derban et al (2005) investigated loan repayment performance in community development finance institutions in the UK. They reported that 8 out of the 13 institutional characteristics examined substantially influence loan repayment performance.…”

Section: Introductionmentioning

confidence: 99%

Credit reporting, relationship banking, and loan repayment

Kebria¹,

Aalikhani²

2015

10.5267/j.msl

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This paper presents an empirical investigation to determine factors influencing on loan repayment in one of Iranian banks named Sepah Bank over the period 2012-2013. The study selects a sample of 290 bank's customers who received loans and, using logistic regression technique, tries to find whether or not qualitative as well as quantitative characteristics of loan receivers influence on repayment of loans. The results indicate that history of outstanding debt as well as customers' past experiences with banks had meaningful relationships with having bad credit and non-payment of loans. In our survey, having a bad credit in the past had positive relationship with non-payment of loans but long-term customers had negative relationship with non-payment of loans. In addition, working capital turnover ratio, cash ratio, total liabilities, current assets and loan value had significant impact on non-repayment of the loan facilities.Growing Science Ltd. All rights reserved. 5

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Loan Repayment Performance in Community Development Finance Institutions in the UK

Cited by 62 publications

References 7 publications

Loan Repayment Performance of Public Agricultural Credit Agencies: Evidence from Jordan

Loan Repayment Performance of Public Agricultural Credit Agencies: Evidence from Jordan

Understanding social investment policy: evidence from the evaluation of Futurebuilders in England

Credit reporting, relationship banking, and loan repayment

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