This study investigates the effect of the external debt burden on economic growth and development of Nigeria .It adopted regression analysis of OLS on secondary data sourced from CBN, Economical and Financial review, Business times, Financial Standard and relevant publication from Nigeria on variable like National Income, Debt Service Payment, External Reserves, Interest rate among others. The ...

Nowadays, the increasing technological improvements followed by data demand made businesses and organizations follow these to continue operating. The Know Your Customer (KYC) assessment is still manually done, growing amount of data, resulting in accumulation affecting time spend analyzing prospective applicant data. unavailability tools that can help review documents leads more timeconsuming K...

Documentation The documentation required to implement an investment will normally comprise: a subscription and shareholders agreement; articles of association (the by-laws or rules setting out how the company is operated); share option schemes (allocating a pool of shares to reward employees and management team mem­ bers); assignments and licences of intellectual property (if not already entere...

In this paper we study an economy with a high degree of financialization in which (nonfinancial) firms need loans from commercial banks to finance production, service debt, and make long-term investments. Along the business cycle, the economy follows a Minsky base cycle with firms traversing through the various stages of financial fragility, i.e. hedge, speculative and Ponzi finance (cf., Minsk...

We study the terms of credit in a competitive market in which sellers (lenders) are willing to repeatedly …nance the purchases of buyers (borrowers) by engaging in a credit relationship. The key frictions are: (i) the lender is unable to observe the borrower’s ability to repay a loan; (ii) the borrower cannot commit to any long-term contract; (iii) it is costly for the lender to contact a borro...

We analyze a model of a repeated microcredit lending and study how group size affects the optimal group lending contracts with joint liability. The story is that one benevolent lender gives microcredit to a group of n borrowers to be invested on n projects. The outcome of each risky project is not observable by the lender. Therefore in case some of the borrowers default on their loan repayments...

In the credit decision-making process, both an applicant’s creditworthiness and their affordability should be assessed. While credit scoring focuses on creditworthiness, affordability is often checked on the basis of current income and estimated current consumption as well as existing debts stated in a credit report. Contrary to that static approach, a theoretical framework for dynamic affordab...

Traditionally, customer credit scoring aimed at distinguishing good payers from bad payers at the time of the loan application. However, the timing when customers become bad is also very interesting to investigate since it can provide the bank with the ability to compute the profitability over a customer’s lifetime and perform profit scoring. The problem statement of analysing when customers de...

Observe that the forward rate F (t, T0, T1) and the swap rate R(t) are known today (time t = 0) from today’s yield curve, but for t > 0 they are unknown and are therefore random variables. In order to value interest rate derivatives we need to model these random variables. To see how we might go about this we consider one of the simplest interest rate derivativesan interest rate cap on a loan. ...