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The economic impact of the COVID-19 pandemic placed many small businesses across the US in financial distress. In response to this, in March 2020 the US government introduced, as part of the CARES Act, the Paycheck Protection Program (PPP) intended to provide relief to small businesses and to preserve jobs during the pandemic. The latter resulted in three waves of funding distributed to small businesses through SBA approved lenders, mainly represented by US banks. By using a panel dataset of 4610 banks over the period Q1 2019–Q4 2020 and by employing a difference-in-differences approach (DiD), I investigate whether participation in the Paycheck Protection Program affected community banks' credit risk-taking behaviour in the post-PPP period, compared to their non-community banking counterparts in the US. I find that the Paycheck Protection Program led community banks to decrease their risk appetite outside of the program relative to non-community banks, consistent with their greater exposure to the commercial real estate sector, heavily hit by the pandemic. My results are robust to a battery of robustness tests and identification strategies. In this research article, I offer novel evidence on the indirect impact of the Paycheck Protection Program as a government-funded stimulus program administered through banks by investigating the indirect effect of the Paycheck Protection Program on the risk-taking of US community banks that dominate lending of PPP loans as a result of their competitive advantage in soft information-intensive small business lending. Such evidence is informative to policymakers as they weigh the merits of various program options to combat the economic damage imposed by the COVID-19 pandemic and as they consider the design of economic stimulus programs in response to future economic crises. [ABSTRACT FROM AUTHOR]

Abstract The Good faith principle as stated in Article 1338 paragraph (3) of the Civil Code, has not been maximally implemented in BPR credit agreements, so it is important to review the transformation of good faith principle of the Civil Code in banking provisions, especially BPR in realizing sound credit. The research uses normative juridical legal methods. The results of the study show that the transformation of the principle of good faith stated in the Civil Code has not been explicitly stated in the provisions of banking law in Indonesia. The existence of principle of good faith explicitly only exists in Article 1338 Paragraph (3) of the Civil Code. Meanwhile, in the provisions of the Banking Law the existence of the principle of good faith is only implied by the principle of economic democracy by using the precautionary principle that is applied carefully and in good faith, as well as the principles of trust and confidence in good ability, ability, intention and morals from customers or the community in returning credit. The transformation of the principle of good faith should be clearly stated in the norm structure into the Banking Law and other related banking legal provisions. Abstrak Good faith principle sebagaimana tercantum pada Pasal 1338 ayat (3) KUHPerdata, belum diimplementasikan secara maksimal dalam perjanjian kredit BPR, sehingga penting mengkaji transformasi asas itikad baik KUH Perdata dalam ketentuan perbankan khususnya BPR dalam mewujudkan perkreditan yang sehat. Metode penelitian menggunakan metode penelitian hukum yuridis normatif. Hasil penelitian menunjukkan bahwa Transformasi asas itikad baik yang tercantum dalam KUHPerdata belum secara eksplisit ternormakan dalam ketentuan hukum perbankan di Indonesia. Keberadaan asas Itikad baik secara eksplisit hanya eksis dalam Pasal 1338 Ayat (3) KUHPerdata. Sementara itu, dalam ketentuan Undang-Undang Perbankan keberadaan asas itikad baik hanya tersirat dari asas demokrasi ekonomi dengan menggunakan prinsip kehati-hatian yang diterapkan secara hati-hati dan itikad baik, serta prinsip kepercayaan dan keyakinan akan kemampuan, kesanggupan, itikad serta akhlak yang baik dari nasabah atau masyarakat dalam mengembalikan kredit. Transformasi asas itikad baik sebaiknya dituangkan dalam struktur norma secara tegas ke dalam Undang-Undang Perbankan dan ketentuan hukum perbankan terkait lainnya.

Local Bank (BPR) as one of the financial institutions in Indonesia in carrying out its activities collecting funds from the public in the form of savings and deposits and channeling back the funds collected through the provision of credit. This study aims to determine, describe and explain the Effect of Allowance for Bad Debt to the Level of Profitability in Subang BPR of Pabuaran Branch. The method used is descriptive method, and testing of the data - the data studied. The data used is data from the financial statements of PD BPR Subang of Pabuaran Branch in 2012 to 2015 with a monthly ratio reports. Any increase in the value of allowance for bad debt (X) of 1% would cause a rise in the value of profitability level in terms of the comparison of operating cost with operating income (Y) of 0.333% and vice versa. The conclusion is the level of allowance for bad debt does not significantly affect the level of profitability as measured by the comparison of operating expenses to operating income.

The Sarbanes–Oxley Act (SOX) of 2002 and the 2010 Dodd–Frank Wall Street Reform and Consumer Protection Act (DFA) were passed to address weaknesses in the internal control environment of the firm. Elements of these Acts reduce risky behavior of financial institutions by reducing informational asymmetry with borrowers. An important element of managing earnings quality in financial institutions is the loss provision, an annual expense set aside for uncollected loan and lease payments. These Acts affect the selection of loss provision expense levels in distinct ways. Using a dataset of community bank financial information observed between 1998 and 2017, it is shown that banks experience a complementary effect between SOX and DFA on loss provision expenses. Improved governance procedures to establish policy responses to nonperforming loans result in reduced expenses, whereas reduced information asymmetry tends to enhance a moral hazard effect. These results show that incentives for firm growth, income, capital, and loan specialization under the SOX and DFA regulatory environments complicate the loan risk management process. [ABSTRACT FROM AUTHOR]

This teaching case addresses the digitization of the local social currency Palmas, issued since the beginning of the years 2000 as a paper currency by Banco Palmas, to a new hybrid model of mobile payments and mobile money, named E-Dinheiro. This is a social development and financial inclusion venture in Brazil, having already great national and international recognition. By telling the history of the community bank and some of its initiatives, this case intends to demonstrate the innovation process in a social fintech, addressing issues such as governance, platform management, information technology, business models and strategy. However, as its business model spreads to other community banks, new challenges emerge to ensure the growth and longevity of the project. [ABSTRACT FROM AUTHOR]

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In this paper, we perform a case study on a community bank from the aspect of the terms structure of the banks historical loan losses and the loan quality rating matrix used by the bank. The data source is from a small rural community bank located in a Midwestern state of the United States. The basic statistical analysis of the loan losses that is based on the banks internal loan quality rating system is presented.

This paper aims to analyze the emergence and trajectory of the Palmas Project, its social currency, results and limitations. Using a qualitative approach, we sought to present the specificities of the Palmas Community Bank and its local implications. The results indicate the importance of the Palmas Bank and its social currency as a mechanism of local empowerment and an impulse to generate work and income for the most vulnerable populations. [ABSTRACT FROM AUTHOR]

The development of local and regional seed banks as well as the subsequent evaluation of their quality are one of the alternatives that can prevent or minimize the loss of the biodiversity of creole seeds. The objective of this study was to evaluate the physical characteristics of Creole corn seeds stored in the Regional Seed Bank of the Caiana Community in Soledade, Paraiba. In the Laboratory of Storage and Processing of Agricultural Products of the Federal University of Campina Grande, seeds were submitted to physical analysis: water content, thousand seeds weight, seed mass, apparent density, real density, porosity, seed volume, color L*, a*, b*, Chroma C*and darkening index. The Jaboatão maize variety had a higher water content, a thousand seeds weight, grain mass, bulk density and grain volume and the Adelaide variety greater porosity and luminosity. [ABSTRACT FROM AUTHOR]

Local Bank (BPR) as one of the financial institutions in Indonesia in carrying out its activities collecting funds from the public in the form of savings and deposits and channeling back the funds collected through the provision of credit. This study aims to determine, describe and explain the Effect of Allowance for Bad Debt to the Level of Profitability in Subang BPR of Pabuaran Branch. The method used is descriptive method, and testing of the data - the data studied. The data used is data from the financial statements of PD BPR Subang of Pabuaran Branch in 2012 to 2015 with a monthly ratio reports. Any increase in the value of allowance for bad debt (X) of 1% would cause a rise in the value of profitability level in terms of the comparison of operating cost with operating income (Y) of 0.333% and vice versa. The conclusion is the level of allowance for bad debt does not significantly affect the level of profitability as measured by the comparison of operating expenses to operating income. [ABSTRACT FROM AUTHOR]

The Term Auction Facility (TAF) was designed by the Federal Reserve during the financial crisis to inject emergency short-term funds into banks, as a supplement to the lender of last resort discount window offerings. We describe how the Federal Reserve altered the design of the Term Auction Facility (TAF) over the course of the financial crisis and examine the utilization of this stand-alone facility. Most specifically we detail the impact of the greatly increased offering amounts in all auctions after October 2008, which resulted in the facility no longer auctioning scarcely available funds. We also document significantly different usage of the facility by FDIC-insured community and non-community banks, consistent with the notion of a two-tiered banking system in the U.S. Community banks were far less likely to use the facility than larger, non-community banks. [ABSTRACT FROM AUTHOR]

We examine how community banks respond to liquidity shocks created by natural disasters. We address community banks' responses to liquidity shocks due to their focused geographic and economic presence, which coincide with their communities' exposure to the disasters and the ability of the local banks to meet their needs. We find that community banks respond to liquidity shocks by managing their balance sheet, rather than any single balance sheet account. In particular, we find that they respond to the liquidity needs of their communities by increasing loans as deposits are withdrawn. [ABSTRACT FROM AUTHOR]

This paper investigates the impact of bank market structure differences within U.S. states on entrepreneurial activity. A panel model is used to evaluate differences in new firm starts within the states relative to the bank market structure and competition. The results indicate that states with more small banks, as measured by the number of unit banks, and banks with more branch locations contribute to new firm creation. Overall competition, as measured by the total number of banking institutions, has a negative effect on firm creation. There is limited evidence that bank failures also have a negative impact on firm creation within the state. [ABSTRACT FROM AUTHOR]

Abstract: Positive economics predicts that Sub-S banks, with no taxes paid at the corporate level, will price their products lower than otherwise identical C corporation banks in a competitive environment. Alternatively, if banks price bundle their products, Sub-S tax benefits might have little (no) effect on product rates. The empirical analysis finds that Sub-S deposit (loan) rates are equal to or lower (higher) than similar C corporation bank rates. Thus, there is little evidence of any tax benefits accruing to Sub-S bank customers. In contrast, tax-exempt credit unions do offer higher deposit rates and lower loan rates than C corporation banks. [ABSTRACT FROM AUTHOR]

This article reports on findings of a study designed to develop and test measures suitable to assessing the perceived comparative contribution of Australian community banks and other more conventional banks to communities served, and the perceived impact of these banks on the well-being and quality of life of individuals who reside in those communities. Findings reveal that perceptions of the contribution of community banks to the sense of community and individual well being are significantly more favorable than those of more conventional banks. [ABSTRACT FROM AUTHOR]

Using a case study approach, this article examines how an Australian bank supports and invests in social sustainability using a community development approach. Bendigo Bank's community engagement model (CEM) is consistent with a stakeholder perspective of the firm. The CEM is a hybrid model drawing on commercial principles, such as the for-profit shareholder-ownership structure, and community development values, such as trust, loyalty, integrity, volunteerism, cooperation and community spirit. The CEM contributes to community development by retaining local capital through a revenue-share arrangement, which is used to invest in further community enhancement initiatives. The success of Bendigo Bank's CEM indicates that the ‘collaborative commerce’ model could be used as a design guideline for other organizations seeking to improve their social sustainability. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment. [ABSTRACT FROM AUTHOR]

This paper examines the link between diversification and risk-adjusted performance for small community banks. The results show diversification benefits within broad activity classes, but not between them. Specific business lines are linked with very different ex post outcomes, however, so the mix of activities is also important. In particular, an increased focus on noninterest income-generating activities is associated with declines in risk- adjusted performance, as are commercial and industrial lending and trading. This is a potential dark side of the search to diversify as managers may enter businesses where they have little experience or comparative advantage. A final set of results shows significant differences in the determinants of risk-adjusted performance for community banks relative to larger banks, which suggests that a competitive opportunity remains for community banks. [ABSTRACT FROM AUTHOR]

This study examines the culture of a medium-sized community bank based in the Western United States. The study aims to identify the organization's culture and then measure the level of cultural cohesion that exists three years after a major cultural campaign was launched. The cultural characteristics the organization valued most highly were integrity, willingness to serve the customer and teamwork -- all components of the official bank document on culture. Interestingly, the analysis uncovered some significant value differences among different employee groups and also employees and management; differences which can affect firm performance levels. The analysis also revealed that changing the culture in an organization does not necessarily lead to cultural cohesion. [ABSTRACT FROM AUTHOR]

Yoko Kitazawa examines the solidarity economies in Japan as a needed alternative to the failures of both government and neo-liberal capitalism. She describes the activities of different groups that are undertaking solidarity, with a focus on female farming entrepreneurs, consumers and non-profit organizations. [ABSTRACT FROM AUTHOR]