today, the country's banking system, according to the discussions to join the world trade organization is encountered with new challenges such as entry of foreign banks, emerging private banks and increasing the activities of financial and credit institutions. therefore, in order to survive and compete in this dynamic environment banking organizations require paying more attention to human...

Most credit portfolio models currently used by the banking industry rely on Monte Carlo simulations for calculating the probability distribution of the future credit portfolio value, which can be quite computer time consuming. Adding market risk factors, such as stochastic interest rates or credit spreads, as additional ingredients of a credit portfolio model, the computational burden of full M...

This study aims to conduct a comparative analysis on the impact of the 2007/2008global financial crisis on the Islamic and conventional banks in Malaysia. Three performance indicators, namely profitability, liquidity and credit risk of the banking institutions are being considered. The study covers a five-year period from 2006 to 2010, and divides the sample period into before, during, and afte...

We present a banking model with imperfect competition in which borrowers’ access to credit is improved when banks are able to transfer credit risks. However, the market for credit risk transfer (CRT) works smoothly only if the quality of loans is public information. If the quality of loans is private information, banks have an incentive to grant unprofitable loans in order to transfer them to o...

We examine the impact of cross-prefectural differences in financial integration on the regional spread of Japan’s Great Recession in the early 1990s. In prefectures with many small manufacturing firms, post-1990 growth was significantly lower if low levels of banking integration with the rest of the country before 1990 existed. The least financially integrated and most credit-dependent prefectu...

This paper explores the empirical relevance of banking market structure on growth. There is substantial evidence of a positive relationship between the level of development of the banking sector of an economy and its long-run output growth. Little is known, however, about the role played by the market structure of the banking sector on the dynamics of capital accumulation. This paper provides e...

Monetary economists have long recognized a tension between the bene…ts of fractional reserve banking, such as the ability to undertake more pro…table (long-term) investment opportunities, and the di¢ culties associated with fractional reserve banking, such as the risk of insolvency for each bank. The goal of this paper is to show that a speci…c form of private bank coalition (a joint-liability ...

Consumer finance has become one of the most important areas of banking both because of the amount of money being lent and the impact of such credit on the global economy and the realisation that the credit crunch of 2008 was partly due to incorrect modelling of the risks in such lending. This paper reviews the development of credit scoring,-the way of assessing risk in consumer finance-and what...