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It is generally admitted that a relationship exists between financial system development and economic growth, although the nexus between these two is complex. Due to the advancement of technology, P2P lending has become a growing industry in Indonesia as an alternative credit different from a conventional bank, which also might contribute to fostering economic growth. This paper's purpose is to analyze the contribution of P2P lending to Product Domestic Regional Bruto (PDRB) in 5 provinces in Java, which are Banten, DKI Jakarta, West Java, Central Java, DI Yogyakarta, and East Java, using fixed effect panel regressions from Q1-2020 to Q2-2022 period. This paper finds a significant and positive impact of P2P lending on real PDRB growth, with a 0,0754% magnitude. Although there is a positive impact, many challenges still need to be overcome in the P2P lending industry. [ABSTRACT FROM AUTHOR]

Purpose: Credit is an essential element in the production process in agriculture. There are two sources from which farm households can access credit: institutional sources and non-institutional or informal sources of credit. The informal sources of credit, such as moneylenders, charge exorbitant rates of interest, which further puts a financial burden on the farmers. Hence, to increase the flow of credit from institutional sources, a policy known as the interest subvention scheme (ISS) was introduced in the year 2006. This paper aims to find the effect of the ISS on the behaviour of farm households. Design/methodology/approach: The author has used difference-in-difference analysis for estimation. In the analysis, the author has taken Madhya Pradesh as the treatment state and Andhra Pradesh as the controlled state. The author has used the Village Dynamics in South Asia (VDSA) dataset of ICRISAT for analysis. The author has used data from 2009 to 2014 for the two states. Findings: The author has found that the difference between the average interest rate of Andhra Pradesh and Madhya Pradesh is significant for both pre-treatment and post-treatment periods and this gap has increased after the intervention period. The results suggest that the share of informal sector borrowings has reduced in the treatment group (Madhya Pradesh) as compared to the control group (Andhra Pradesh) in the post-treatment period. Originality/value: This paper is particularly important because of the dearth of literature on the impact of this scheme in India and may shed light on the much-needed policy implications of this particular policy. [ABSTRACT FROM AUTHOR]

This paper estimates the impact of a program providing classroom and on-the-job entrepreneurship training followed by the provision of a loan to disadvantaged youth. We find that the program increases employment by seven percentage points and income by 21 per cent. The impact is larger for women than men. Furthermore, the results demonstrate an increase in the propensity to save by 17 percentage points with an increase in both the amount of loan taken and outstanding. Nevertheless, the effect of the training component of the program shows no statistically significant impact on income and hours worked. However, the additional impact of the loan component is notable, increasing hours worked as well as earnings. [ABSTRACT FROM AUTHOR]

Under neoliberal social provision, debt has become a primary tool for US households to pursue economic mobility and manage risk. Borrowing supports financial and non‐financial investments that, in theory, should lead to lifetime income and asset gains from which debt can be repaid. Many scholars argue, however, that reliance on credit as a welfare tool significantly increases inequality, particularly along racial lines. In this paper, I examine this process of debt‐financed asset accumulation by analyzing racial disparities in the relationship between household debt and assets. Using Survey of Consumer Finances data, I examine disparities in assets held at given debt levels across Black and White households. Results indicate that at equal debt levels, Black households' assets are between 30% and 80% lower than those of comparable White households. This suggests that White households benefit considerably more from social policies that center borrowing as a mechanism of social provision. This likely contributes to the persistence of the racial wealth gap. Racial disparities in access to credit, to homeownership, and to non‐market financial transfers like inheritances partly explain White households' higher returns, but racial gaps remain even when accounting for these factors. [ABSTRACT FROM AUTHOR]

The banking industry in any country ensures, due to the specific nature of its activity, a key role in the functioning of economic mechanisms, with an impact on macroeconomic developments, on the dynamics of the business environment and on the improvement of the Romanian economy. The 32 credit institutions that make up the banking sector in Romania had net assets of 803.4 billion lei in 2023 and have recorded an acceleration in profitability compared to recent years, achieving a net profit of 13.7 billion lei. In addition to the banks' lending role, they also attract deposits, thus protecting the savings of the population and companies. Banks support the economy by granting loans, but it is important that they go to the sectors with the highest development potential and which create wellpaid jobs. [ABSTRACT FROM AUTHOR]