This study was conducted with the aim of measuring effect capital adequacy ratio, net interest margin, non-performing loan, loan to deposit operational efficiency ratio on profitability banking companies listed IDX during 2018-2020 period using firm size as a control variable. Sample selection is done by purposive sampling technique. Data processing 32 use samples carried out SPSS Statistics 17...

We show that the determinants and economic implications of the primary loan loss indicators reported in financial reports—non-performing loans (NPL), the allowance and provision for loan losses (ALL and PLL), and net loan charge-offs (NLCO)—vary dramatically across real estate, commercial, and consumer loan types, because these types differ in their homogeneity and collateralization and thus in...

We study the role that recourse plays in commercial real estate loan contracts of largest U.S. banks. find is valued by lenders and treated as a substitute for conventional equity. At origination, loans have rate spreads are at least 20 basis points lower loan-to-value ratios around 3 percentage higher than non-recourse loans. Dynamically, affects modification negotiations providing additional ...

Prosper, the largest online social lending marketplace with over a million members and $207 million in funded loans, uses an auction amongst lenders to finance each loan. In each auction, the borrower specifies D, the amount he wants to borrow, and a maximum acceptable interest rate R. Lenders specify the amounts ai they want to lend, and bid on the interest rate, bi, they’re willing to receive...

Economic Value Added, or EVA is one of the popular tools that bankers can use to measure the financial performance of their bank. EVA helps management to conduct internal goal-setting. The long-term goal is preferred than short-term implications. It measures the company’s financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit, ad...

Consider an agent who is attempting to maintain a given consumption level over time. in the face of a stochastic technology. He is permitted to borrow and lend at given rates of interest. The main results are: (i) if the borrowing rate of interest exceeds the lending rate. the expected net indebtedness of the agent must grow unboundedly large, unless the consumption target is attainable with at...

To achieve the goals of Paris Agreement, massive investments in real economy are needed. We propose providing long-term interest subsidized loans to companies investing sustainable projects with primary goal greenhouse gas neutrality. In detail, we linking loan rates EU Taxonomy and future CO2 prices. These links incentivize decarbonize. Furthermore, this link can hedge against volatile prices ...

This paper solves a dynamic model of households’mortgage decisions incorporating labor income, house price, in‡ation, and interest rate risk. It uses a zero-pro…t condition for mortgage lenders to solve for equilibrium mortgage rates given borrower characteristics and optimal decisions. The model quanti…es the e¤ects of adjustable vs. …xed mortgage rates, loan-to-value ratios, and mortgage a¤or...

Today’s low mortgage interest rates make direct real estate investments attractive to individual investors. However, low rates may result in an investor paying too much for the property. Sensitivity analysis conducted on a set of projected financial statements for a direct real estate investment shows the potential impact of changing rates on holding period return. Higher subsequent loan rates ...