The payoff of many credit derivatives depends on the level of credit spreads. In particular, the payoff of credit derivatives with a leverage component is sensitive to jumps in the underlying credit spreads. In the framework of first passage time models we extend the model introduced in [Overbeck and Schmidt, 2005] to address these issues. In the extended a model, a credit quality process is dr...

Traditional credit card payment is not secure against credit card frauds because an attacker can easily know a semisecret credit card number that is repetitively used. Recently one-time transaction number has been proposed by some researchers and credit card companies to enhance the security in credit card payment. Following this idea, we present a practical security enhancement scheme for one-...

The credit scoring model development has become a very important issue, as the credit industry is highly competitive. Therefore, considerable credit scoring models have been widely studied in the areas of statistics to improve the accuracy of credit scoring during the past few years. This study constructs a hybrid SVM-based credit scoring models to evaluate the applicant’s credit score accordin...

This paper explores how consumption smoothing (via borrowing and lending) works when a person cannot commit to payback a loan. We study an environment where individuals are of two types, with one type having a higher propensity to default on debt obligations. Financial intermediaries cannot directly observe a person’s type but make probabilistic assessments of it based on the person’s credit hi...

The payoff of many credit derivatives depends on the level of credit spreads. In particular, credit derivatives with a leverage component are subject to gap risk, a risk associated with the occurrence of jumps in the underlying credit default swaps. In the framework of first passage time models, we consider a model that addresses these issues. The principal idea is to model a credit quality pro...

With the rise and swift growth of E-Commerce, credit card uses for online purchases has increased dramatically and it caused sudden outbreak in the credit card fraud. Fraud is one of the major ethical issues in the credit card industry. With both online as well as regular purchase, credit card becomes the most popular mode of payment with cases of fraud associated with it are also increasing. A...

Using the industrial economics approach to the microeconomics of banking we analyze a large bank under credit risk. Our aim is to study how a risky loan portfolio affects optimal bank behavior in the loan and deposit markets, when credit derivatives to hedge credit risk are available. We examine hedging without and with basis risk. In the absence of basis risk the usual separation result is con...

This paper shows how the productive interplay of theory and experimental work has furthered our understanding of credit markets in developing countries. Descriptive facts motivated a body of theory, which in turned motivated experiments designed to test it. Results from these experiments reveal both the success and the limits of the theory, prompting new work to refine it. We argue that the lit...

Brief introduced the concepts of credit and credit risk in e-commerce, analyzed the impact of credit risks in e-commerce. Gave out the basic contents of personal credit information and business credit information in e-commerce, and analyzed and pointed out the main factors that caused the security risks of e-commerce credit information. At last, proposed some technical and non-technical measure...

Recent legislative efforts to protect credit unions against unfavorable legislation reflect the growing importance of credit unions in the U.S. financial services sector. Efforts to address new technologies, combined with deregulation in financial services, have led changes in the field of membership rules governing how credit unions are chartered and how they may grow. These regulations have c...