Credit risk is a significant factor affecting the financial stability of banks. Keeping credit under control essential to maintain bank’s cash flow. This paper examines various profitability, microeconomic and macroeconomic indicators that affect risk. The study uses dataset 31 banks from 2012 2021 employs panel data modelling approach account for any variations in risk-taking behavior. results...

Small community banks and the largest experience higher ratios of nonperforming loans than other sizes banks. To what extent does their nonperformance result from lending to riskier borrowers, it a lack proficiency at loan making? Does market discipline punish or reward credit risk proficiency? Using stochastic frontier estimation, we develop technique decompose banks’ ratio total into three co...

Are regulations on the payday loan effective? Do people switch to other forms of expensive credit such as pawnshop loans because of such regulations? In this study, we aim to find the answers to these two questions through exploring state-level variations in regulations on payday loans and other alternative financial services. Using FDIC’s panel survey data and Google Trends data, we find that ...

With ECCU economies slowly emerging from the pandemic with scars, impact of war in Ukraine is a setback to nascent recovery. Higher food and energy prices, amid ongoing supply disruptions intra-regional transportation bottlenecks, are raising inflation, eroding income, lowering output growth, worsening fiscal external positions, threatening security. As result, inflation expected hover over 5½ ...

During the COVID-19 lockdown, typical bank in Middle East lost liquidity due to deposit drains and experienced increases nonperforming loans. The loss of was a supply shock, while increase loans demand shock. Corporate governance board’s oversight top management’s implementation strategies reduce these shocks. Two corporate measures include political concentration ownership presence independent...

Abstract The Great Financial Crisis of 2008 exposed certain weaknesses in the field investment banking and necessity to adapt innovative solutions newly created economic financial environment. process securitization is a innovation, which some analysts consider one causes Crisis. Although it often linked emergence Crisis, advantages model, together with level adaptability enhanced control throu...

Measuring and improving the efficiency of the Chinese commercial banking system has recently attracted increasing interest. Few studies, however, have adopted the two-stage network DEA to explore this issue in the Chinese context. Because the entire operational process of the banking system could be divided into two sub-processes (deposit producing and profit earning), the evaluation of the sub...

Although the rise in subprime lending and the ensuing wave of foreclosures was partly a result of market forces that have been well-identified in the literature, in the United States it was also a highly racialized process. We argue that residential segregation created a unique niche of poor minority clients who were differentially marketed risky subprime loans that were in great demand for use...

The "lost decade" is a term popularly used to describe the Japanese economy of the 1990s, the period following the bursting of the country’s economic bubble. Yet even after the problems of nonperforming bank loans and damaged balance sheets were corrected in the early 2000s, growth has not been able to return to the level of the pre-bubble era. This has prompted Faculty Fellow Kyoji Fukao and h...

China’s current saving and investment levels are extraordinary— both in terms of its own history, but also by comparison with the current and historical experience of high-saving countries like Japan. The International Monetary Fund’s 2005 World Economic Outlook places China’s gross saving at 50 percent of GDP with gross capital formation, not far behind, at 45 percent of GDP (IMF 2005: 96–97)....