Resolving the puzzle which financial indicators persistently indicate severe disruptions in business of banking, is utmost importance for prudential authorities. Thus, intent this paper to outline microeconomic determinants bankruptcies within banking sectors EU-15 countries and clarify role bank capital it. Namely, regulation designed as both, ex-ante (bankruptcy prevention) ex-post costs redu...

Fault detection and isolation (FDI) logic plays a crucial role in enhancing the safety and reliability, and reducing the operating cost of aircraft propulsion systems. However, it is a challenging problem achieving the FDI task with high reliability. For this purpose, various approaches have been proposed in the literature. In an on-line engine fault diagnoses, two tasks may use Kalman filter t...

We consider a model in which banking is characterized by asset substitution moral hazard and managerial under-provision of effort in loan monitoring. The privately-optimal bank leverage efficiently balances the benefit of debt in providing the discipline to ensure that the bank monitors its loans against the benefit of equity in attenuating asset-substitution moral hazard. However, when correla...

Based on the Barings Bank case study from Chapter 1 This case study is found in Chapter 1 of the textbook, but the analysis I present here incorporates ideas from several chapters of the book. Included in the analysis here are the following concepts: Chapter 3: Contracting costs and the existence of firms Chapter 5: Economies of scale and scope Chapter 6: Perfect competition Chapter 10: Asymmet...

There are those who regard this type of enterprise that of strengthening the regime for managing financial failures as misdirected. Some think focusing on bank resolution is like devoting resources to redesigning the morgue rather than improving the hospital. Some think that by preparing to deal with crises you make them more likely. I think the wiser judgment is the contrary. In this area at l...