In the 21st century, while the scope of banking activities has been expanding every day, collecting deposits and providing credit remain as their main and most important functions. They transfer the collected funds th...In the 21st century, while the scope of banking activities has been expanding every day, collecting deposits and providing credit remain as their main and most important functions. They transfer the collected funds thanks to the market confidence they create back to the market in terms of the credits they give. For the organizations operating in the banking sector, crediting is the highest revenue earning source. However, uncollected loans may disrupt the activities of banks and may reduce their effectiveness. Therefore, the control of bank credits has a particular importance in the bank balance sheets. In this study, the relationship between bank balance sheets and non-performing loans (NPL) will be analyzed using Granger causality test and vector autoregressive (VAR) method. This study aims to discuss the impact of NPL on balance sheets and contribute to making correct credit decisions. It also intends to assist to reduce the NPL ratios of banks and minimize the level of negativity in their financial statements.展开更多
In this paper, through analyzing the necessity of the securitization of the non-performing loans of China's state-owned banks, the author proposes some tentative ideas for the securitization of the non-performing loa...In this paper, through analyzing the necessity of the securitization of the non-performing loans of China's state-owned banks, the author proposes some tentative ideas for the securitization of the non-performing loans and works out some problems that need to be solved in this process.展开更多
The main purpose of this study is to ascertain the effect of bank-specific and macroeconomic factors on non-performing loans in systemically and non-systemically important commercial banks in Sri Lanka over 10 year’s...The main purpose of this study is to ascertain the effect of bank-specific and macroeconomic factors on non-performing loans in systemically and non-systemically important commercial banks in Sri Lanka over 10 year’s period from 2004 to 2013.Also,the study examines the impact of civil war that prevailed in the country for 30 years on the ex-post credit risk of the banking sector.The study employed panel data methodology to investigate the effect of bank-specific and macroeconomic factors on non-performing loans.Panel unit root test has been undertaken in order to test the stationary of the variables.Hausman test and Wald coefficient restriction test were used to select the appropriate model out of pooled,random,and fixed effect.A dummy variable panel regression model adopted to study the war effect,considering 2009 as the structural year.Findings revealed that return on assets as a proxy for bank efficiency has a significant negative influence,while non-interest income as a proxy for income diversity is positively correlated with non-performing loans of systemically important banks.Both real gross domestic products and lending rates were highly significant in both bank types.On contrary with literature,growth in bank branches is negatively correlated.Public banks do not account for higher level of non-performing loans compared to their private counterpart.Finally,it was identified that civil war had an effect on the level of non-performing loans in commercial banks.The research would have benefited if the analysis is carried out among classified types of loans offered by commercial banks.Future researchers should involve in identifying the most significant contributing loan type to the non-performing loans and its determinants.This study is one of the few studies which have investigated the causes of non-performing loans in the commercial banking industry in Sri Lanka.The analysis of civil war and its impact on non-performing loans is the first study of that nature to be conducted in the context.展开更多
This study analyzes the impact of non-performing loans(NPLs)on bank liquidity creation to investigate the existence of moral hazard problem in Chinese banks.It uses data from 197 listed and unlisted Chinese banks,span...This study analyzes the impact of non-performing loans(NPLs)on bank liquidity creation to investigate the existence of moral hazard problem in Chinese banks.It uses data from 197 listed and unlisted Chinese banks,spanning the period 2005 to 2014.Total liquidity creation by Chinese banks is declining,and NPLs ratio has started to increase following a continuous decline between 2005 and 2012.Using one-step system GMM estimation,fixed and random effect model,and pool data analysis,we find that liquidity creation by Chinese banks does not depend on NPLs ratio,i.e.,we did not find the evidence of moral hazard problem in Chinese banks.We repeated the analysis for small and large banks and the results of these sub-samples reinforced our findings for the aggregate sample.展开更多
This paper explores the macroeconomic determinants of non-performing loans(NPL) in 19 Asian countries(low to high income economies) using the Generalized Method of Moments estimation approach based on the economic dat...This paper explores the macroeconomic determinants of non-performing loans(NPL) in 19 Asian countries(low to high income economies) using the Generalized Method of Moments estimation approach based on the economic data for the period between 1998 and 2015. The categorization of the economies is based on the average gross national income per capita as set by the World Bank.Specifically, the paper aims to evaluate if the determinants of NPL vary with the income levels of the countries. The results indicate that the NPL is strongly influenced by the inflation rate. The effect is,however, negative in the high-income and the middle-income countries and positive in the low-income countries. The GDP per capita has a dynamic negative relationship with the NPL in the high-income and the low-income countries. The remittance has a significant positive association in the high-income and a significant negative association in the low-income countries. Similarly, the unemployment rate has a positive effect on NPL in the middle-income and the low-income countries. With the rise in the official exchange rate, the NPL level increases in the low-income countries. The overall estimation results suggest that the NPL in Asian banking system depend on some key macroeconomic variables,such as unemployment rate, inflation rate, official exchange rate, remittance received and gross domestic product per capita, and these associations vary with the income level of the countries. Therefore,economic level of a country should be carefully considered while formulating credit policy to minimize credit risks in the banking system.展开更多
In order to reduce the risk of non-performing loans, losses, and improve the loan approval efficiency, it is necessary to establish an intelligent loan risk and approval prediction system. A hybrid deep learning model...In order to reduce the risk of non-performing loans, losses, and improve the loan approval efficiency, it is necessary to establish an intelligent loan risk and approval prediction system. A hybrid deep learning model with 1DCNN-attention network and the enhanced preprocessing techniques is proposed for loan approval prediction. Our proposed model consists of the enhanced data preprocessing and stacking of multiple hybrid modules. Initially, the enhanced data preprocessing techniques using a combination of methods such as standardization, SMOTE oversampling, feature construction, recursive feature elimination (RFE), information value (IV) and principal component analysis (PCA), which not only eliminates the effects of data jitter and non-equilibrium, but also removes redundant features while improving the representation of features. Subsequently, a hybrid module that combines a 1DCNN with an attention mechanism is proposed to extract local and global spatio-temporal features. Finally, the comprehensive experiments conducted validate that the proposed model surpasses state-of-the-art baseline models across various performance metrics, including accuracy, precision, recall, F1 score, and AUC. Our proposed model helps to automate the loan approval process and provides scientific guidance to financial institutions for loan risk control.展开更多
The network arbitration cases arising from the network lending disputes are pouring into the courts in large numbers.It is reported that the network arbitration system of some arbitration institutions even“can accept...The network arbitration cases arising from the network lending disputes are pouring into the courts in large numbers.It is reported that the network arbitration system of some arbitration institutions even“can accept more than 10,000 cases every day,”while online lending is booming,it has also caused a lot of contradictions and disputes,and traditional dispute resolution methods have failed to effectively respond to the need for efficient and convenient resolution of online lending disputes.This paper tries to study the arbitral award of online loans and proposes the construction of implementation review rules.展开更多
This paper describes the development of a knowledgebased system (KBS) for determining whether or not, and under what conditions, a bank Ioan officer should grant a business loan to a company. The prototype system deve...This paper describes the development of a knowledgebased system (KBS) for determining whether or not, and under what conditions, a bank Ioan officer should grant a business loan to a company. The prototype system developed focuses on what is bank loans risks management, how to prevent risk by the analysis of the ability of paying back loans. The paper makes the structural analysis involved in the system's decision situation, the structured situation diagram or model, dependency diagram and the document needed by the KBS prototype system thus are developed. Through testing the samples from loan business, the quality for the analysis of the ability of paying back loans can be effectively evaluated by the KBS prototype system.展开更多
Intelligent Decision Support System (IISS) for Bank Loans Risk Classification (BLRC), based on the way of integration Artificial Neural Network (ANN) and Expert System (ES), is proposed. According to the feature of BL...Intelligent Decision Support System (IISS) for Bank Loans Risk Classification (BLRC), based on the way of integration Artificial Neural Network (ANN) and Expert System (ES), is proposed. According to the feature of BLRC, the key financial and non-financial factors are analyzed. Meanwhile, ES and Model Base (MB) which contain ANN are designed . The general framework,interaction and integration of the system are given. In addition, how the system realizes BLRC is elucidated in detail.展开更多
According to the index early warning method, a commercial bank loans risk early warning system based on BP neural networks is proposed. The warning signal is mainly involved with the financial situation signal of loan...According to the index early warning method, a commercial bank loans risk early warning system based on BP neural networks is proposed. The warning signal is mainly involved with the financial situation signal of loaning corporation. Except the structure description of the system structure the demonstration of attemptive designing is also elaborated.展开更多
During the financial crisis, the delayed recognition of credit losses on loans and other financial instruments was identified as a weakness in existing incurred loss model of impairment stated by International Account...During the financial crisis, the delayed recognition of credit losses on loans and other financial instruments was identified as a weakness in existing incurred loss model of impairment stated by International Accounting Standards (IAS) 39, because it is believed that this delay might generate pro-cyclical effects. In response to the recommendations of G20, Financial Crisis Advisory Group (FCAG), and other international bodies, the International Accounting Standards Board (IASB) has undertaken, since 2009, as a part of the project to replace IAS 39, a project (partially shared with Financial Accounting Standards Board (FASB)) aimed at introducing an expected loss model of impairment. Within the scope of this subset project, the IASB has previously issued two exposure documents proposing models to account for expected credit losses: an exposure draft (ED) Financial Instrument: Amortized Cost and Impairment, published in November 2009, and a supplementary document (SD) Financial Instrument: Impairment, published jointly with the FASB in January 2011. However, neither of the two proposals received strong support from interested parties. Recently, the IASB, after the FASB's decision to withdraw from the joint project and to develop a separate expected credit loss model based on a single measurement approach consisting in the sole recognition of lifetime expected credit losses, published a third proposal--Ahe so-called expected credit losses model (ED/2013/3 Financial Instruments: Expected Credit Losses).展开更多
There are problems of inadequate natural endowment and weak stamina in the development of micro-credit loans to farmers in China. Specifically,existing problems include narrow profit space,serious non-agricultural tre...There are problems of inadequate natural endowment and weak stamina in the development of micro-credit loans to farmers in China. Specifically,existing problems include narrow profit space,serious non-agricultural trend of funds,high dependence on government support,short life cycle,and constantly increasing operating risks. These problems are related to endogenous drawback in design,defect in operating procedure,lagging in relevant policies and measures,and vacancy in risk compensation mechanism.展开更多
The incompatibility of China's economy and finance has to some extent inhibited the development of rural economy. Taking Hubei Province for example,we measure the allocation efficiency of rural financial resources...The incompatibility of China's economy and finance has to some extent inhibited the development of rural economy. Taking Hubei Province for example,we measure the allocation efficiency of rural financial resources from the perspective of agricultural input and output,and use the modern rural financial development theory to set forth some policy recommendations on how to build a new rural financial resource allocation system. Studies have shown that the allocation efficiency of rural financial resources is low in China,and improving the allocation efficiency of rural financial resources is the key to perfecting rural financial environment while increasing financial support for agriculture.展开更多
With the implementation of the opening policy, the Bank of China(BOC) started lending to foreignfunded enterprises early in the 1980s. At the end of 1993, 50 percent of foreignfunded enterprise had opened accounts wit...With the implementation of the opening policy, the Bank of China(BOC) started lending to foreignfunded enterprises early in the 1980s. At the end of 1993, 50 percent of foreignfunded enterprise had opened accounts with the BOC. BOC has made US dollar loans worth $16.8 billion, and RMB ioans of ¥ 135.55 billion to展开更多
Central China’s power sup-ply will get a major boostfrom the expansion of Henan Province’sYanshi Thermal Power Plant --a project involving $180 million worth of WorldBank loans. Yanshi Plant is situated on thesouth ...Central China’s power sup-ply will get a major boostfrom the expansion of Henan Province’sYanshi Thermal Power Plant --a project involving $180 million worth of WorldBank loans. Yanshi Plant is situated on thesouth bank of Yellow River, about 30 kmeast of Luoyang Municipality. Once com-pleted at the end of 1995, the plant willboast an installed capacity of 1000 MW,展开更多
Home mortgage loan lending firms are exposed to many business risks.This paper focuses on the mortgage loan borrower risks and proposes a prospective loss analysis approach in regard to loan repayment defaults of borr...Home mortgage loan lending firms are exposed to many business risks.This paper focuses on the mortgage loan borrower risks and proposes a prospective loss analysis approach in regard to loan repayment defaults of borrowers.For this purpose,a predictive modeling is presented in three stages.In the first stage,occurrence of borrower defaults in a mortgage loans portfolio is modeled through the generalized linear models(GLMs)type regressions for which we specify a logistic distribution for default events.The second stage of modeling develops a survival analysis in order to estimate survival probability and hazard rate functions for individual loans.Ultimately,an expectable loss amount model is presented in the third stage as a function of conditional survival probabilities and corresponding hazard rates at loan levels.Throughout all modeling stages,a large and real data set is used as an empirical analysis case by which detailed interpretations and practical implications of the obtained results are stated.展开更多
The non-performing assets of China’s financial institutions totaled RMB l,800 billion. Has this threatened the safety of China’s financial industry? Where do this large amount of nonperforming assets come from?
I. INTRODUCTIONPurpose1.1 The purpose of these Guidelines is to informthose carrying out a project that is financed in wholeor in part by a loan from the International Bank forReconstruction and Development (IBRD) or ...I. INTRODUCTIONPurpose1.1 The purpose of these Guidelines is to informthose carrying out a project that is financed in wholeor in part by a loan from the International Bank forReconstruction and Development (IBRD) or a creditfrom the International Development Association(IDA), of the arrangements to be made for procur-ing the goods and works (including relatedservices) required for the project. The Loan Agree-ment governs the legal relationships between the Bor-rower and the Bank, and the Guidelines are made ap-plicable to procurement of goods and works for theproject, as provided in the agreement. The rightsand obligations of the Borrower and the providers ofgoods and works for the project are governed by thebidding documents, and by the contracts signed bythe Borrower with the providers of goods and works,and not by these Guidelines or the Loan Agreements.No party other than the parties to the Loan Agree-ment shall derive any rights therefrom or have anyclaim to loan proceeds.展开更多
文摘In the 21st century, while the scope of banking activities has been expanding every day, collecting deposits and providing credit remain as their main and most important functions. They transfer the collected funds thanks to the market confidence they create back to the market in terms of the credits they give. For the organizations operating in the banking sector, crediting is the highest revenue earning source. However, uncollected loans may disrupt the activities of banks and may reduce their effectiveness. Therefore, the control of bank credits has a particular importance in the bank balance sheets. In this study, the relationship between bank balance sheets and non-performing loans (NPL) will be analyzed using Granger causality test and vector autoregressive (VAR) method. This study aims to discuss the impact of NPL on balance sheets and contribute to making correct credit decisions. It also intends to assist to reduce the NPL ratios of banks and minimize the level of negativity in their financial statements.
文摘In this paper, through analyzing the necessity of the securitization of the non-performing loans of China's state-owned banks, the author proposes some tentative ideas for the securitization of the non-performing loans and works out some problems that need to be solved in this process.
文摘The main purpose of this study is to ascertain the effect of bank-specific and macroeconomic factors on non-performing loans in systemically and non-systemically important commercial banks in Sri Lanka over 10 year’s period from 2004 to 2013.Also,the study examines the impact of civil war that prevailed in the country for 30 years on the ex-post credit risk of the banking sector.The study employed panel data methodology to investigate the effect of bank-specific and macroeconomic factors on non-performing loans.Panel unit root test has been undertaken in order to test the stationary of the variables.Hausman test and Wald coefficient restriction test were used to select the appropriate model out of pooled,random,and fixed effect.A dummy variable panel regression model adopted to study the war effect,considering 2009 as the structural year.Findings revealed that return on assets as a proxy for bank efficiency has a significant negative influence,while non-interest income as a proxy for income diversity is positively correlated with non-performing loans of systemically important banks.Both real gross domestic products and lending rates were highly significant in both bank types.On contrary with literature,growth in bank branches is negatively correlated.Public banks do not account for higher level of non-performing loans compared to their private counterpart.Finally,it was identified that civil war had an effect on the level of non-performing loans in commercial banks.The research would have benefited if the analysis is carried out among classified types of loans offered by commercial banks.Future researchers should involve in identifying the most significant contributing loan type to the non-performing loans and its determinants.This study is one of the few studies which have investigated the causes of non-performing loans in the commercial banking industry in Sri Lanka.The analysis of civil war and its impact on non-performing loans is the first study of that nature to be conducted in the context.
文摘This study analyzes the impact of non-performing loans(NPLs)on bank liquidity creation to investigate the existence of moral hazard problem in Chinese banks.It uses data from 197 listed and unlisted Chinese banks,spanning the period 2005 to 2014.Total liquidity creation by Chinese banks is declining,and NPLs ratio has started to increase following a continuous decline between 2005 and 2012.Using one-step system GMM estimation,fixed and random effect model,and pool data analysis,we find that liquidity creation by Chinese banks does not depend on NPLs ratio,i.e.,we did not find the evidence of moral hazard problem in Chinese banks.We repeated the analysis for small and large banks and the results of these sub-samples reinforced our findings for the aggregate sample.
基金Supported by the CAS-TWAS President’s Fellowship 2014 to the First Author from the Chinese Academy of Sciences,Beijing,China and the World Academy of Sciences,Trieste,Italy
文摘This paper explores the macroeconomic determinants of non-performing loans(NPL) in 19 Asian countries(low to high income economies) using the Generalized Method of Moments estimation approach based on the economic data for the period between 1998 and 2015. The categorization of the economies is based on the average gross national income per capita as set by the World Bank.Specifically, the paper aims to evaluate if the determinants of NPL vary with the income levels of the countries. The results indicate that the NPL is strongly influenced by the inflation rate. The effect is,however, negative in the high-income and the middle-income countries and positive in the low-income countries. The GDP per capita has a dynamic negative relationship with the NPL in the high-income and the low-income countries. The remittance has a significant positive association in the high-income and a significant negative association in the low-income countries. Similarly, the unemployment rate has a positive effect on NPL in the middle-income and the low-income countries. With the rise in the official exchange rate, the NPL level increases in the low-income countries. The overall estimation results suggest that the NPL in Asian banking system depend on some key macroeconomic variables,such as unemployment rate, inflation rate, official exchange rate, remittance received and gross domestic product per capita, and these associations vary with the income level of the countries. Therefore,economic level of a country should be carefully considered while formulating credit policy to minimize credit risks in the banking system.
文摘In order to reduce the risk of non-performing loans, losses, and improve the loan approval efficiency, it is necessary to establish an intelligent loan risk and approval prediction system. A hybrid deep learning model with 1DCNN-attention network and the enhanced preprocessing techniques is proposed for loan approval prediction. Our proposed model consists of the enhanced data preprocessing and stacking of multiple hybrid modules. Initially, the enhanced data preprocessing techniques using a combination of methods such as standardization, SMOTE oversampling, feature construction, recursive feature elimination (RFE), information value (IV) and principal component analysis (PCA), which not only eliminates the effects of data jitter and non-equilibrium, but also removes redundant features while improving the representation of features. Subsequently, a hybrid module that combines a 1DCNN with an attention mechanism is proposed to extract local and global spatio-temporal features. Finally, the comprehensive experiments conducted validate that the proposed model surpasses state-of-the-art baseline models across various performance metrics, including accuracy, precision, recall, F1 score, and AUC. Our proposed model helps to automate the loan approval process and provides scientific guidance to financial institutions for loan risk control.
文摘The network arbitration cases arising from the network lending disputes are pouring into the courts in large numbers.It is reported that the network arbitration system of some arbitration institutions even“can accept more than 10,000 cases every day,”while online lending is booming,it has also caused a lot of contradictions and disputes,and traditional dispute resolution methods have failed to effectively respond to the need for efficient and convenient resolution of online lending disputes.This paper tries to study the arbitral award of online loans and proposes the construction of implementation review rules.
基金Supported by the National Science Foundation of China(No.7977086)
文摘This paper describes the development of a knowledgebased system (KBS) for determining whether or not, and under what conditions, a bank Ioan officer should grant a business loan to a company. The prototype system developed focuses on what is bank loans risks management, how to prevent risk by the analysis of the ability of paying back loans. The paper makes the structural analysis involved in the system's decision situation, the structured situation diagram or model, dependency diagram and the document needed by the KBS prototype system thus are developed. Through testing the samples from loan business, the quality for the analysis of the ability of paying back loans can be effectively evaluated by the KBS prototype system.
基金the National Natural Science Fund of China(Approved No.79779986)
文摘Intelligent Decision Support System (IISS) for Bank Loans Risk Classification (BLRC), based on the way of integration Artificial Neural Network (ANN) and Expert System (ES), is proposed. According to the feature of BLRC, the key financial and non-financial factors are analyzed. Meanwhile, ES and Model Base (MB) which contain ANN are designed . The general framework,interaction and integration of the system are given. In addition, how the system realizes BLRC is elucidated in detail.
基金Supported by the National Science Foundation of China(Approved NO.79770086)
文摘According to the index early warning method, a commercial bank loans risk early warning system based on BP neural networks is proposed. The warning signal is mainly involved with the financial situation signal of loaning corporation. Except the structure description of the system structure the demonstration of attemptive designing is also elaborated.
文摘During the financial crisis, the delayed recognition of credit losses on loans and other financial instruments was identified as a weakness in existing incurred loss model of impairment stated by International Accounting Standards (IAS) 39, because it is believed that this delay might generate pro-cyclical effects. In response to the recommendations of G20, Financial Crisis Advisory Group (FCAG), and other international bodies, the International Accounting Standards Board (IASB) has undertaken, since 2009, as a part of the project to replace IAS 39, a project (partially shared with Financial Accounting Standards Board (FASB)) aimed at introducing an expected loss model of impairment. Within the scope of this subset project, the IASB has previously issued two exposure documents proposing models to account for expected credit losses: an exposure draft (ED) Financial Instrument: Amortized Cost and Impairment, published in November 2009, and a supplementary document (SD) Financial Instrument: Impairment, published jointly with the FASB in January 2011. However, neither of the two proposals received strong support from interested parties. Recently, the IASB, after the FASB's decision to withdraw from the joint project and to develop a separate expected credit loss model based on a single measurement approach consisting in the sole recognition of lifetime expected credit losses, published a third proposal--Ahe so-called expected credit losses model (ED/2013/3 Financial Instruments: Expected Credit Losses).
文摘There are problems of inadequate natural endowment and weak stamina in the development of micro-credit loans to farmers in China. Specifically,existing problems include narrow profit space,serious non-agricultural trend of funds,high dependence on government support,short life cycle,and constantly increasing operating risks. These problems are related to endogenous drawback in design,defect in operating procedure,lagging in relevant policies and measures,and vacancy in risk compensation mechanism.
基金Supported by Humanities and Social Sciences Project of the Ministry of Education(10YJC790111)
文摘The incompatibility of China's economy and finance has to some extent inhibited the development of rural economy. Taking Hubei Province for example,we measure the allocation efficiency of rural financial resources from the perspective of agricultural input and output,and use the modern rural financial development theory to set forth some policy recommendations on how to build a new rural financial resource allocation system. Studies have shown that the allocation efficiency of rural financial resources is low in China,and improving the allocation efficiency of rural financial resources is the key to perfecting rural financial environment while increasing financial support for agriculture.
文摘With the implementation of the opening policy, the Bank of China(BOC) started lending to foreignfunded enterprises early in the 1980s. At the end of 1993, 50 percent of foreignfunded enterprise had opened accounts with the BOC. BOC has made US dollar loans worth $16.8 billion, and RMB ioans of ¥ 135.55 billion to
文摘Central China’s power sup-ply will get a major boostfrom the expansion of Henan Province’sYanshi Thermal Power Plant --a project involving $180 million worth of WorldBank loans. Yanshi Plant is situated on thesouth bank of Yellow River, about 30 kmeast of Luoyang Municipality. Once com-pleted at the end of 1995, the plant willboast an installed capacity of 1000 MW,
文摘Home mortgage loan lending firms are exposed to many business risks.This paper focuses on the mortgage loan borrower risks and proposes a prospective loss analysis approach in regard to loan repayment defaults of borrowers.For this purpose,a predictive modeling is presented in three stages.In the first stage,occurrence of borrower defaults in a mortgage loans portfolio is modeled through the generalized linear models(GLMs)type regressions for which we specify a logistic distribution for default events.The second stage of modeling develops a survival analysis in order to estimate survival probability and hazard rate functions for individual loans.Ultimately,an expectable loss amount model is presented in the third stage as a function of conditional survival probabilities and corresponding hazard rates at loan levels.Throughout all modeling stages,a large and real data set is used as an empirical analysis case by which detailed interpretations and practical implications of the obtained results are stated.
文摘The non-performing assets of China’s financial institutions totaled RMB l,800 billion. Has this threatened the safety of China’s financial industry? Where do this large amount of nonperforming assets come from?
文摘I. INTRODUCTIONPurpose1.1 The purpose of these Guidelines is to informthose carrying out a project that is financed in wholeor in part by a loan from the International Bank forReconstruction and Development (IBRD) or a creditfrom the International Development Association(IDA), of the arrangements to be made for procur-ing the goods and works (including relatedservices) required for the project. The Loan Agree-ment governs the legal relationships between the Bor-rower and the Bank, and the Guidelines are made ap-plicable to procurement of goods and works for theproject, as provided in the agreement. The rightsand obligations of the Borrower and the providers ofgoods and works for the project are governed by thebidding documents, and by the contracts signed bythe Borrower with the providers of goods and works,and not by these Guidelines or the Loan Agreements.No party other than the parties to the Loan Agree-ment shall derive any rights therefrom or have anyclaim to loan proceeds.