Impact of global financial crunch on financially innovative microfinance institutions in South Asia

The wave of global financial crises(2008-2009)caused a surge in the capital flows of developed countries particularly,between developed and developing countries.The crunch hit all financial sectors with unanticipated severity.The study evaluates the role of a country’s political practices in moderating the impact of global financial crunch on microfinance performance.Using the fixed effect panel regression method on the dataset comprising of 95 MFIs operating in South Asia from 2003 to 2012,we determine that microfinance operational capability shares a positive relationship with the institutional attributes of a country and our output reveals that impact of country’s political practices is pervasive on the financial output of MFIs,liable to different levels of implementation.The findings further reveals that MFIs situated in countries having vigorous political practices are less severely affected by the economic crunch.

Plight and Countermeasures of Petty Credit Loan in Rural Financial Institutions in the Context of Rural Revitalization Strategy

The implementation of China's rural revitalization strategy will surely release a huge financial demand in rural areas.How to use the petty credit loan in rural financial institutions to develop rural economy is an effective way to implement the rural revitalization strategy.This paper first analyzes the significance of petty credit loan in rural financial institutions for rural revitalization strategy,then introduces the remarkable contribution of petty credit loan in China's rural financial institutions to actively solving the problems of farmers about difficult financing and expensive financing and elaborates on the main problems of petty credit loan business in rural financial institutions that still exist in the process of supporting rural revitalization,and finally gives several suggestions on solving the problems about the financing of farmers and the development of petty credit loan business in rural financial institutions.

Reform of Financial Institutions—— Getting it Right

The purpose of this article is to reflect upon the importance and the role of financial institutions before, during, and after the financial crisis and to outline proposals for alternative approaches to the financial crisis. Without an understanding of the historic development, nature and scope, and important limitations of modem financial institutions, the regulatory reform of modem financial institutions cannot be successful. The success of financial reforms and their restructuring can only be measured when modem financial institutions participate, support, and develop the real economy and support a more balanced, inclusive, and diverse social development process. This is what the really ＂exciting＂ banking and finance organizations should stand for. The regulatory reforms, bail-outs, and dominant ideas about the European banking union, for example, are impeding, rather than facilitating, hope for real economic and social recovery on both sides of the Atlantic. The method used in the present article, is legal and institutional analysis of the financial institutions. The empirical and comparative overview of the role and importance of financial institutions shows the variety of financial institutions developed in different historical and socio-economic circumstances. They show there is no one single best model of financial institutions that could be universally applicable. The design and the regulatory framework for the financial institutions should therefore take into account the overall strategy of economic and social development. In absence of any such comprehensive strategy it is unlikely that the regulatory reform of the financial institutions can be successful.

The Influence of CSR Practices on Financial Performance： Evidence From Islamic Financial Institutions in Indonesia

The emergence of Islamic Financial Institutions （IFls） is expected to provide enormous benefits for the Muslims community in Indonesia such as the availability of IFIs based on Sharia law and the implementation of Islamic value in the community. Like Corporate Social Responsibility （CSR） practices in all business organizations, the IFI＇s CSR becomes one of the important factors in improving organizational performance. The implementation of CSR in IFIs is unique as it is based on Sharia law. Zakat and Qardh are the uniqueness of IFI＇s CSR practices. There are many studies which have investigated the relationship of Zakat and Qardh on organizational performance in Arabic and Muslim countries. As Muslim countries, Islamic laws including providing Zakat and Qardh are practices of every business organization. Indonesia is not a Muslim country, Zakat and Qardh are only required for IFIs as part of CSR practices. This study aims to analyze the influence of CSR practices on the financial performances of IFIs in Indonesia using gender as a control variable. The samples of this research were taken from the annual reports of nine Islamic banks for the period of 2010-2014. Regression method was used to analyze and test hypotheses. The results of this research indicate that the relationship between CSR practices and financial performance is significant, the value of R is 0.737, and R square is 0.543. This means that the implementation of CSR practices （Zakat and Qardh） improves organizational financial performances of IFIs in Indonesia. This study also has a limitation as it only focuses on Zakat and Qardh; thus in the future, it is necessary to advance the variable of CSR practices on the real social and environmental practices such as environmental improvement, increasing the quality of human resources, involving in any jobs or reducing unemployment and any other activities.

Discussion on the Influence of Overseas Financial Institutions’ Participation in Shares on the Operation Efficiency of China’s Banking Industry

With the implementation of China’s reform and opening up policy and China’s successful accession to the World Trade Organization,more and more overseas financial institutions are participating in various Chinese banks,and the amount of investment is also expanding.Therefore,it is particularly important to study the impact of overseas financial institutions participating in the Chinese Banks on the operating efficiency of the China’s banking industry.Therefore,based on the previous literature research,this paper constructs six models to explore whether foreign financial institutions participate in shares and the impact of shareholding ratio on the operating efficiency of China’s banking industry.

Socio-Environmental Responsibility Policy in Financial Institutions

This research intents to analyze the influence of Socio-Environmental Responsibility Policy of Brazilian’s Central Bank on financial institutions economic performance listed at the Brazilian stock exchange.The data was collected from diversified sources(websites,explanatory notes,reference form and Economatica®data base)from 2012 up to 2017.As sample,22 financial institutions were considered for data collection and analysis.The results showed that the growth in shareholder’s equity and contingent liabilities have significant differences from the adoption of the Socio-Environmental Responsibility Policy.Considering six items of corporate governance and six items of risk management,no investigated institution presented all these mechanisms requested by Brazilian’s Central Bank.Brazilian’s financial institutions recognized a greater volume of liabilities and expenses after the implementation of such policy,which reduced their net equity.This research shed some lights in socio-environmental policies regarding corporate governance and risk management mechanisms.Objective:to analyze whether the adoption of a socio-environmental responsibility policy influences the performance indicators and the corporate governance and risk management framework of financial institutions listed on the Brazilian stock exchange.Method:Data were collected from the period 2012 to 2017,referring to 22 Brazilian financial institutions,which provided information to operationalize the variables.Results:the results showed that,from the performance indicators investigated,the growth in shareholders'equity and contingent liabilities presented significant differences as of the adoption of the socio-environmental responsibility policy.Twelve items were analyzed,six of which were corporate governance and six of risk management,noting that no investigated institution presented all the mechanisms provided by the Central Bank of Brazil.Contributions:the evidence suggests that Brazilian financial institutions began to recognize a greater volume of liabilities and expenses after the obligation to implement the socio-environmental responsibility policy,reducing their net equity.These results may be due to the improvement of the corporate governance structure and the adequacy of the risk management process.

State Council Issued the “Regulations on the Control of Foreign Funded Financial Institutions”

The Xinhua News Agency has released the full text of the No.340 order of the State Council signed by Premier Zhu Rongji, on the publication of the Regulations of the People’s Republic of China on the Control of Foreign Funded Financial Institutions, which will take effect on the date of February 1 in 2002.

Research of problems and solutions in financial management of administrative institutions

In recent years, with the deepening of financial reform, administrative institutions continue to strengthen the reforms of financial management, and gradually established a relatively sound system of budge management, revenue and expenditure management. However, in the current system of financial management, there are still many problems that can not be ignored.

Research on the Financial Management of China＇s Private Higher Learning Institutions

With the deepening of China＇s reform and opening up, China＇s private higher education has got rapid development. The expanding of the scale and the updating of the educational philosophy makes the financial management of private higher learning institutions can＇t meet the developing needs of them. Through summing up the current defects existed in the financial management activities of the private higher learning institutions, this paper tries to advise the private higher learning institutions to set out their efforts on financial management foundation, financing management, investment management, budget management, financial analysis and financial supervision six aspects, standardize and optimize the financial management activities to promote the healthy development of China＇s private higher learning institutions.

An Empirical Analysis of Regional Disparity of Financial Exclusion Based on Types and Levels of Financial Institution

We make an empirical analysis of regional characteristics of influence factors of financial exclusion by using the data of types and levels of financial institutions in China from 1998 to 2012. The study shows that the number of financial institutions continues to increase,but with uneven distribution; the density of financial institutions increases steadily and the gap between the eastern regions and the Midwest is huge; the commercial banks of the eastern regions account for the highest proportion but the rate of basic outlets of the commercial bank is low,the rate of basic outlets of the rural institution bank is relatively higher,and the proportion of the Midwest rural banks is high. Even though the financial exclusion eases,large differences still exist in different areas and the situation is rather critical in rural areas,especially the financial exclusion in western rural areas is the worst. The economic development level,area scale,government expenditure,personal savings level,per capita consumption and educational level have different effects on financial exclusion. Accordingly,this paper puts forward the recommendations for coordinating the financial resource from all regions and reducing the regional financial exclusion.

Trade credit financing for supply chain coordination under financial challenges:a multi‑leader–follower game approach

This study is designed to solve supply chain inefficiencies caused by some members’financial problems,such as capital shortages and financing restrictions in a stochastic environment.To this end,we have established a supply chain finance framework by designing two novel coordinating contracts based on trade credit financing for different problem settings.These contracts are modeled in the form of multi-leader Stackelberg games that address horizontal and vertical competition in a supply chain consisting of multiple suppliers and a financially constrained manufacturer.However,previous studies in the trade credit literature have addressed only simple vertical competition,that is,seller-buyer competition.To solve the proposed models,two algorithms were developed by combining population-based metaheuristics,the Nash-domination concept,and the Nikaido-Isoda function.The results demonstrate that the proposed supply chain finance framework can eliminate supply chain inefficiencies and make a large profit for suppliers,as well as the financially constrained manufacturer.Furthermore,the results of the contracts’analysis showed that if the manufacturer is required to settle its payments to suppliers before the end of the period,the trade credit contract cannot coordinate the supply chain because of a lack of incentive for suppliers.However,if the manufacturer is allowed to extend its payments to the end of the period,the proposed trade credit financing contract can coordinate the supply chain.Finally,the sensitivity analysis results indicate that the worse the financial status of the manufacturer,the more bargaining power suppliers have in determining the contract parameters for more profit.

How to set up a foreign-funded or Chinese-foreign joint venture financial institution in Shanghai

If you are representing a foreign-funded institution in setting up a foreign-funded bank or financial company in Shanghai, you should have a representative agency already established within the boundaries of China for more than two years, and general assets at the end of the previous year should not be less than US $ 10 billion. The country or region you are residing in should have

Do US states’responses to COVID-19 restore investor sentiment?Evidence from S&P 500 financial institutions

This paper specifically investigates the effects of US government emergency actions on the investor sentiment–financial institution stock returns relationship.Despite attempts by many studies,the literature still provides no answers concerning this nexus.Using a new firm-specific Twitter investor sentiment(TS)metric and performing a panel smooth transition regression for daily data on 66 S&P 500 financial institutions from January 1 to December 31,2020,we find that TS acts asymmetrically,nonlinearly,and time varyingly according to the pandemic situation and US states’responses to COVID-19.In other words,we uncover the nexus between TS and financial institution stock returns and determine that it changes with US states’reactions to COVID-19.With a permissive government response(the first regime),TS does not impact financial institution stock returns;however,when moving to a strict government response(the overall government response index exceeds the 63.59 threshold),this positive effect becomes significant in the second regime.Moreover,the results show that the slope of the transition function is high,indicating an abrupt rather than a smooth transition between the first and second regimes.The results are robust and have important policy implications for policymakers,investment analysts,and portfolio managers.

TheFocaIPointsoftheInstitutesofInternaIFinanciaIControIinHigherLearning

高校内部财务控制在实施过程中存在许多值得关注的问题,如何在现行复杂多变的经济环境中设计出一套科学合理有效的内部财务控制体系,事关高校改革与发展。本文从货币资金、筹资与对外投资、采购与付款、工程项目、预算外收入、经费支出以及科研经费管理等方面作了比较深入的探讨,以期对我国高校内部财务控制设计有所帮助。

Regional Financial Development and Regional Economic Growth: An Empirical Analysis of Suzhou City, China

There are many defects in researches on the relationship of the regional financial development (FD) and economic growth of China, such as simply assuming the causality direction, not highlighting financial institution, using incomplete financial indicator, etc. This article, taking Suzhou City of Jiangsu Province, China as a case, builds a simple model to study the level of FD from three aspects of financial scale, structure and institution. Three original indicators of PRIVY (private investment/aggregate investment), DEPTH (aggregate loan/GDP) and FDIVG (FDI/GDP) are used to construct the FD economic indicator through Principal Component Analysis approach. Then we use Granger method to analyze the relationship between the FD and the economic growth of Suzhou. Empirical test results show that the FD of Suzhou is the Granger reason of economic growth, while economic growth is not the reason for FD, because the relationship between the FD and the economic growth of Suzhou is just in the ″supply-leading″ period. In terms of Suzhou experiences, the local government should strengthen the protection of private investment, improve the institutional environment, and establish the reasonable financial structure. So we can concluded that FD could play a great role in promoting economic growth at the economy takeoff stage.

Similar financial models： Are they free lunches？

In recent years, the academic and practical circles have paid so much attention to similar financial models because they generated a miracle in GOME （Gome Electrical Appliances Holding Limited） and SUNING （Suning Appliance Co., Ltd.） respectively. But what＇s the influence of such a model on corporate profitability and risk？ Are similar financial models free lunches？ To seek for the answers to the above questions, in this paper, we take Gree （GREE Electric Appliances, Inc. of Zhuhai）, Midea （Guangdong Midea Electric Appliances Co. Ltd. Stores） and GOME for examples to carry out a comprehensive and in depth financial analysis. The conclusions of this paper are： The company with similar financial characteristics has higher profitability and risk level; Only the companies which meet special requirements need or can implement such a model and the identification and control of hidden risk can guarantee its success.

Evaluation and Optimization Approaches of Rural Financial Ecological Environment in Hubei Province

Agriculture is the foundation of national economy,and the quality of rural financial ecological environment determines the level of rural economic development. At the same time of making outstanding achievements in rural financial reform,there are still many problems in rural financial ecological environment. Taking Hubei Province as an example,this paper summarized existing problems from current situations of rural financial ecological environment,and finally came up with pertinent recommendations.

The Influence of Financial Markets on Countries＇ Economic Life

This working paper aims to investigate one of the most present markets in whole economic life： financial market. Even if not everyone is playing on financial market, the result of trading on this markets can be seen and felt by any participant on economic life--individuals, businesses, and government. Those which are participating and trading on financial markets influence economic and social life in a way or another. The paper comes to showing how existence and trading on financial markets can change the money supply and behavior of individuals, businesses, and later they can affect entire economic and social life. The author uses financial data provided by international database such as： Eurostat, central banks, International Monetary Fund, World Bank, BMI Research, website of domestic ministries of finance, and/or economy. The research concluded that in those countries where there is an active and experienced financial market, with a huge volume of transactions, also exists a financial and fiscal stability. Unemployment rate is lower, and a higher level of confidence of investors. A very active financial market can also help governments to maintain their balance of payment in equilibrium and/or to accelerate the development of productive capacity, and for raising and maintaining social stability level.

The defects of fair value under global financial crisis

With the advent of the economic crisis, fair value once again becomes a hot topic. This paper discusses the issues of fair value from three aspects including the meaning of fair value, its serious impacts and its inapplicability in China. As for this point, this paper stress that the rub of the fair value is its inaccurate recognition elements which will inevitably lead to the inaccurate measurement. Finally, the paper puts forward the viewpoint that China should be careful enough to apply the fair value accounting.