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An
Empirical Test of a New Theory of Economic Reform: The Case
of Indonesia
-- Carolyn V Currie
Analyses
of the nature of debtrelying on the theory of rational expectationsconclude
that the burden of public debt need not fall on future generations
if the present one anticipates the higher taxes needed in
future for debt servicing. However, there have been many
instances where increases in budget deficits were followed
by a decrease in the savings propensity of the private sector.
Foreign exchange earnings also have to be set aside. The
main problem for countries in an early stage of economic
development is that, often, the borrowings are not productively
employed resulting in national debt crises. Foreign lenders
become increasingly reluctant to lend further amounts to
a country which has been a net capital importer. This article
puts forth, a methodology for testing a new theory of economic
growth in Indonesia as it represents a case of faltering
economic growth and financial instability resulting in a
huge increase in foreign debt, depreciating currency and
a dramatic increase in the percentage of population below
the poverty line. The theory emphasizes on the key factors
determining the success or failure of policies that change
the underlying economic structures, leading to an intrinsic
monitoring of "over-borrowing".
©
2006 IUP . All Rights Reserved.
Capital
Adequacy of Indian Commercial Banks: Some Empirical Results
-- Ram Pratap Sinha
Capital
adequacy stipulations at the global level have become more
demanding following the Basel Committee's initiative to
introduce internal model-based capital charge. This article
considers the three alternative paradigmsValue at Risk (VaR),
Expected Shortfall (ES) and Expected Excess Loss (EEL) that
may be used to determine the regulatory capital. The study
also articulates the methodology for dealing with the granularity
problem. Furthermore, it outlines the Indian banking sector
scenario in respect of capital adequacy for the period 1996-97
to 2002-03. Results of panel regression show that Tier I
CRAR of Indian commercial banks is positively related to
operating efficiency and has a negative relationship with
NPA ratio. But no definite relationship between the CRAR
and bank size could be determined from the analysis.
©
2006 IUP . All Rights Reserved.
Liquidity
Trends in
the Indian Iron and Steel Industry: A Comparative Study
of SAIL and TISCO
-- S
C Bardia
Liquidity
is an important aspect of financial management. Hence, it
is essential for an to study the trends of liquidity.
This article presents a comparative study of liquidity trends
of SAIL and TISCO. It provides a basis to judge whether
the liquidity policy pursued by the companies are satisfactory
or some improvement is required in the sphere of financial
management. The statistical methods such as index number,
time series analysis, regression and chi-square test have
been employed in this study to examine the liquidity position
of both the companies. This article also analyzes the working
capital and sales relationship based on working capital
turnover ratio and statistical techniques of regression.
The statistical technique of hypothesis testing has further
been used to analyze the significance of differences between
actual and estimated values of working capital, current
assets and current liabilities of both the companies. On
the whole, the liquidity policies pursued by SAIL and TISCO
have been precisely and effectively presented.
©
2006 IUP . All Rights Reserved.
India's
Terms of Trade: A Commodity Group-wise Analysis
--
L Krishna Veni
This
article examines the Indian terms of trade during the period
1980-81 to 2002-03. Through the study, it is found that
the general index of Net Barter Terms of Trade (NBTOT) was
unfavorable to India in the early few years of the study
period; however, since 1983-84, it reveals a favorable trend.
Further, it is noted that the Gross Barter Terms of Trade
(GBTOT) is favorable throughout the study period. The Income
Terms of Trade (ITOT) points out that the capacity of the
country to import is encouraging almost in the entire study
period. The author points out that the mean values of NBTOT
for the commodity groups like, food and food articles, beverages
and tobacco, animal and vegetable oil, fats and waxes, manufactured
goods classified chiefly by material have deteriorated in
the post-liberalization period compared to pre-liberalization
period. On the contrary, some commodity groups like crude
materials except fuels; mineral fuels, lubricants, etc;
chemicals and related products; machinery and transport
equipment; and miscellaneous manufactured articles, have
indicated an improvement since the pre-liberalization period
in terms of the mean values of NBTOT. This study suggests
that the Indian exports can quote higher prices in the international
market only when the quality and quantity of the products
improve.
©
2006 IUP . All Rights Reserved.
Non-performing
Assets in Public Sector Banks: An
Investigation
-- B
Krishna Reddy,
P Premchand Babu,
V Mallikarjuna and P Viswanath
Indian
banking has made a significant progress after nationalization
especially in three aspects: Branch expansion, deposit mobilization
and loan maximization. Among these, monitoring of loans
took a back seat in an era of mass banking and social banking.
In the changing scenario of the operations of Public Sector
Banks (PSBs), Non-performing Assets (NPAs) have been the
most vexing problem faced by PSBs. The Reserve Bank of India
(RBI) and Government of India (GoI) have initiated various
measures to curb NPAs in the post-financial sector reforms.
But PSBs are still unable to solve the problem. In the liberalized
scenario, the continuation of the NPAs is a menace for the
survival of the banks. After over a decade of implementation
of financial sector reforms and prudential norms, there
is a need for a systematic analysis of NPAs. In this milieu,
this article is an investigation of the trends in NPAs,
sectoral composition of NPAs, asset quality diagnosis and
the scenario of NPAs at the bank level. This study reveals
that the gross and net NPAs have gone down gradually from
23.2% and 14.5% from 1993-94 to 7.8% and 3.0% in the year
2003-04, showing the strong commitment of PSBs towards reduction
and management of NPAs. The quality of portfolio of the
PSBs has improved quite impressively over the period. In
a nutshell, NPAs have been reducing in the PSBs as a whole
due to the effectiveness of various measures initiated by
RBI and GoI. To survive and compete with private and foreign
banks, it is crucial for the PSBs to clean up their balance
sheets by increasing the equity capital; and bring changes
in the attitude of the bankers and borrowers both in the
present and the future.
©
2006 IUP . All Rights Reserved.
Book
Review
Management
of Change in Education
-- Willis
H Griffin and Udai Pareek
"Without
knowledge, an organization will face obstacles, remain static
and be incapable to bring about dynamic changeThe needed
changes involve attitude, mindset, leadership, administration
and management."
-
Brunei Minister of Home Affairs
©
2005 Willis H Griffin and Udai Pareek/ IUP . All Rights Reserved. IUP holds
the copyright for the review. |
