Social and Financial Inclusion through Nonbanking Institutions: A Model for Rural Romania
Abstract
:1. Introduction
2. Literature Review
3. Methodology
3.1. Descriptive Data and Statistics
3.2. Indicators and Models
3.2.1. Credit Constraints Model (Model 1)
3.2.2. Network Model of Nonbank Financial Institutions (Including Digital Ones)
4. Results
4.1. Empirical Evaluation of NFI (Calculation of Indicators)
4.1.1. Relevant Indicators for NFI Sector Development
Indicator 1: Asset Formation Indicator (IF)
Indicator 2: Asset Use Indicator (IU)
Indicator 3: NFI (IS) Expansion Indicator
Indicator 4: Debt Sustainability Indicator
4.2. The Microinnovation and Entrepreneurship (MIT) Model
- Microcredit MC;
- MA—microinsurance;
- MG—microguarantee;
- MI—microinvestment/microeconomics;
- TF—transfer of funds;
- CS—social credit.
- CSF—financial consultancy;
- CSM—management consulting;
- CP—design consultancy;
- CMV—marketing and sales consultancy;
- CAS—assistance association in associative forms;
- CCF—advisory services for accounting and tax services;
- ASS—other support services.
5. Discussion and Conclusions
Author Contributions
Funding
Acknowledgments
Conflicts of Interest
References
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1 | RON is the national currency of Romania; the average annual rate for 2019 is 1 Euro to 4.7383 RON, according to the National Bank of Romania. |
Name | Symbol | Data Source | Calculation Formula | |
---|---|---|---|---|
Indicator 1 | Asset formation indicator | IF | Nonbanking financial institution (NFI) financial statements and national financial accounts | IF = CHN/AFT = total financial expense/assets |
Indicator 2 | Asset usage indicator | IU | NFI financial statements and national financial accounts | IU = VTN/AFT = total income/total financial assets |
Indicator 3 | NFI sector expansion indicator | IS | Financial statements of the NFIs and the statistical yearbook of Romania | IS = AFN/GDP = total financial assets/GDP |
Indicator 4 | Debt sustainability indicator | IT | NFI financial statements and national financial accounts | IT = DFN/VTN = total financial debt/total income |
Primary Indicators | Terms |
---|---|
AFN | Total financial assets of NFI, comprising total investments, fixed assets, disponible assets, and receivables |
CHN | Total NFI expenditure, comprising total financial and nonfinancial expenditure |
GDP | Gross domestic product. It is found that this indicator is determined by comparing two absolute sizes of different natures—a stock size and a flow rate |
VTN | Total NFI revenue |
DFN | Total NFI financial liabilities |
Efficiency (EF) | |
IF | Asset formation indicator = total expenditure/total financial assets = CHN/AFN |
Performance (PF) | |
UI | Asset Use Indicator = total income/fine assets total = VTN/AFN |
Development (DV) | |
IS | NFI growth indicator = fine assets total/GDP = AFN/GDP |
Sustainability (ST) | |
IT | Debt sustainability indicator = total financial debt/total revenue = DFN/VTN |
Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 |
---|---|---|---|---|---|---|---|---|---|---|---|
Income (VTN) | 2756 | 2689 | 3002 | 6206 | 5880 | 5034 | 4882 | 5168 | 4272 | 4382 | 4955 |
Costs (CHN) | 1617 | 2350 | 1997 | 6120 | 5665 | 4770 | 4748 | 4775 | 3908 | 3913 | 4452 |
Total financial assets (AFN) | 29,766 | 42,565 | 36,375 | 30,850 | 27,221 | 26,772 | 25,927 | 24,020 | 25,235 | 28,084 | 32,476 |
Liability (DFN) | 48,410 | 43,502 | 27,216 | 22,527 | 12,300 | 24,189 | 2402 | 23,848 | 22,404 | 23,311 | 24,920 |
GDP (PIB) | 416,007 | 524,389 | 510,523 | 533,881 | 565,097 | 596,682 | 637,456 | 668,144 | 712,659 | 762,342 | 858,333 |
Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 |
---|---|---|---|---|---|---|---|---|---|---|---|
Costs (CHN) (million RON) | 1617 | 2350 | 1997 | 6120 | 5665 | 4770 | 4748 | 4775 | 3908 | 3913 | 4452 |
Total financial assets (AFN), (million RON) | 29,766 | 42,565 | 36,375 | 30,850 | 27,221 | 26,772 | 25,927 | 24,020 | 25,235 | 28,084 | 32,476 |
IF | 0.054 | 0.055 | 0.549 | 0.198 | 0.208 | 0.178 | 0.183 | 0.198 | 0.155 | 0.139 | 0.137 |
Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 |
---|---|---|---|---|---|---|---|---|---|---|---|
Income (VTN) (million RON) | 2756 | 2689 | 3002 | 6206 | 5880 | 5034 | 4882 | 5168 | 4272 | 4382 | 4955 |
Total financial assets (AFN), (million RON) | 29,766 | 42,565 | 36,375 | 30,850 | 27,221 | 26,772 | 25,927 | 24,020 | 25,235 | 28,084 | 32,476 |
IU | 0.092 | 0.063 | 0.083 | 0.201 | 0.216 | 0.188 | 0.188 | 0.217 | 0.169 | 0.156 | 0.153 |
Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 |
---|---|---|---|---|---|---|---|---|---|---|---|
Total financial assets (AFN) (million RON) | 29,766 | 42,565 | 36,375 | 30,850 | 27,221 | 26,772 | 25,927 | 24,020 | 25,235 | 28,084 | 32,476 |
GDP (PIB) (million RON) | 416,007 | 524,389 | 510,523 | 533,881 | 565,097 | 596,682 | 637,456 | 668,144 | 712,659 | 762,342 | 858,333 |
IS | 0.073 | 0.083 | 0.081 | 0.057 | 0.048 | 0.056 | 0.041 | 0.036 | 0.035 | 0.036 | 0.037 |
Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 |
---|---|---|---|---|---|---|---|---|---|---|---|
Liability (DFN) (million RON) | 48,410 | 43,502 | 27,216 | 22,527 | 12,300 | 24,189 | 2402 | 23,848 | 22,404 | 23,311 | 24,920 |
Income (VTN) (million RON) | 2756 | 2689 | 3002 | 6206 | 5880 | 5034 | 4882 | 5168 | 4272 | 4382 | 4955 |
IT | 17,565 | 16,177 | 9066 | 3630 | 2092 | 4805 | 4589 | 4615 | 5244 | 5319 | 5029 |
No. | Dimension | Ind. | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
I. | Efficiency | IF | 0.054 | 0.055 | 0.549 | 0.198 | 0.208 | 0.178 | 0.183 | 0.198 | 0.155 | 0.139 | 0.137 |
II. | Performance | IU | 0.092 | 0.063 | 0.083 | 0.201 | 0.216 | 0.188 | 0.188 | 0.217 | 0.169 | 0.156 | 0.153 |
III. | Development | IS | 0.073 | 0.083 | 0.081 | 0.057 | 0.048 | 0.056 | 0.041 | 0.036 | 0.035 | 0.036 | 0.037 |
IV. | Sustainability | IT | 17,565 | 16,177 | 9066 | 3630 | 2092 | 4805 | 4589 | 4615 | 5244 | 5319 | 5029 |
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Yue, X.-G.; Cao, Y.; Duarte, N.; Shao, X.-F.; Manta, O. Social and Financial Inclusion through Nonbanking Institutions: A Model for Rural Romania. J. Risk Financial Manag. 2019, 12, 166. https://doi.org/10.3390/jrfm12040166
Yue X-G, Cao Y, Duarte N, Shao X-F, Manta O. Social and Financial Inclusion through Nonbanking Institutions: A Model for Rural Romania. Journal of Risk and Financial Management. 2019; 12(4):166. https://doi.org/10.3390/jrfm12040166
Chicago/Turabian StyleYue, Xiao-Guang, Yong Cao, Nelson Duarte, Xue-Feng Shao, and Otilia Manta. 2019. "Social and Financial Inclusion through Nonbanking Institutions: A Model for Rural Romania" Journal of Risk and Financial Management 12, no. 4: 166. https://doi.org/10.3390/jrfm12040166
APA StyleYue, X.-G., Cao, Y., Duarte, N., Shao, X.-F., & Manta, O. (2019). Social and Financial Inclusion through Nonbanking Institutions: A Model for Rural Romania. Journal of Risk and Financial Management, 12(4), 166. https://doi.org/10.3390/jrfm12040166