Föhrenbergkreis Finanzwirtschaft

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Archive for 14. Februar 2020

China’s Digital Revolution in Bank Lending

Posted by hkarner - 14. Februar 2020

Huang Yiping

Huang Yiping, a former member of the Monetary Policy Committee of the People’s Bank of China, is Professor of Economics and Finance at the National School of Development and Director of the Institute of Digital Finance, Peking University, and a member of the International Monetary Fund’s External Advisory Group on Surveillance.

China has long recognized the importance of increasing small and medium-size enterprises‘ access to finance; now, online banks have found the solution the country needs. This could be a boon not only for growth and innovation, but also for broader financial inclusion – in China and beyond.

BEIJING – China’s economy is growing at is lowest rate in over 30 years, but if the country’s nearly 40 million small and medium-size enterprises (SMEs) could overcome a lack of access to funding, they could become a powerful engine of economic dynamism. Can digital innovators close the SME financing gap?

China’s government has certainly tried. Since 2005, policymakers have been working to expand access to financial services for SMEs, as well as for low-income households. Measures have included the establishment of more than 8,000 micro-credit companies, higher annual SME loan requirements for banks, and a mandatory reduction in the average interest rate on loans to SMEs, by one percentage point per year in 2018 and 2019. Den Rest des Beitrags lesen »

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New Firms for a New Era

Posted by hkarner - 14. Februar 2020

Date: 12‑02‑2020

Source: Project Syndicate by Dani Rodrik

Dani Rodrik, Professor of International Political Economy at Harvard University’s John F. Kennedy School of Government, is the author of Straight Talk on Trade: Ideas for a Sane World Economy. 

In recent years, large corporations have become increasingly aware that they must be sensitive not only to the financial bottom line, but also to the social and environmental effects of their activities. But societies should not allow firms‘ owners and their agents to drive the discussion about reforming corporate governance.

CAMBRIDGE – Firms are the cornerstone of the modern economy. The bulk of production, investment, innovation, and job creation takes place within them. Their decisions determine not only economic performance, but also the health and wellbeing of a society. But who should govern firms, and on whose behalf should those decisions be made?

The conventional theory under which our contemporary economies operate is that firms are governed by – or on behalf of – investors. This theory posits a clear separation between owners and employees – between capital and labor. Investors own the firm and they must make all the relevant decisions. Even where this is impractical, as in larger firms with multiple investors, the presumption is that managers are “agents” of the investors – and of investors alone. Den Rest des Beitrags lesen »

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The ‘Stakeholders’ vs. the People

Posted by hkarner - 14. Februar 2020

Date: 13‑02‑2020

Source: The Wall Street Journal By Vivek Ramaswamy

Liberals claim they’re troubled by corporate power. So why are they working to expand it?

‘Stakeholder capitalism” is officially here. That’s the fashionable notion that companies should serve not only their shareholders, but also other interests and society at large. Last month Airbnb’s leaders announced a new mandate that the company “benefit all our stakeholders over the long term,” including through tying executive compensation to the company’s social goals. The same week, BlackRock chief Larry Fink issued an open letter to CEOs explaining that companies his massive firm invests with will soon have to abide by the rules of a Sustainability Accounting Standards Board regarding climate change, labor practices and other issues. CEOs at the World Economic Forum in Davos touted similar ideas, as have presidential candidates.

Stakeholder capitalism runs contrary to the demands of U.S. corporate law, which holds that directors and executives have a duty to one master: shareholders. Milton Friedman worried that a shift from shareholder primacy would cause companies to operate less efficiently and be less profitable, leaving investors, workers and consumers worse off. Den Rest des Beitrags lesen »

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