Following the deregulation policies implemented by the Chinese government in 2001, foreign banks were allowed to enter the Chinese banking market gradually, in different years in different cities. As a result, from 2001 to 2006 firms in different cities had differential access to foreign bank credit. Using an extensive firm-level dataset from the manufacturing census in China, this paper studie...

as “unmanaged risks.” The term “unmanaged” connotes the practical difficulties associated with managing fraud risk effectively and dynamically. In recent years, while the number of publicized frauds—unauthorized usage of credit and ATM cards, checking account fraud, Nigerian scams, etc.—increased, these cases merely constituted the tip of the iceberg. Estimates are that just 20% of frauds are e...

We examine the implications of optimal credit risk transfer (CRT) for bank-loan monitoring, and the incentives for banks to engage in optimal CRT. In our model, properly designed CRT instruments allow banks to insure themselves against loan losses precisely in those states that signal monitoring. We find that optimal CRT enhances loan monitoring and expands financial intermediation, in contrast...

The performance of Islamic banks still fluctuates every year and even their ratios are below the BI standard per bank. purpose this research is to evaluate impact firm-specific risk (credit risk, liquidity operational risk) macroeconomic factors (inflation, GDPG unemployment) on commercial conventional (ROA) in Indonesia. Comparison with made because differences respective banking operations/sy...

This paper measures the importance of bank-firm relationships in obtaining higher credit “limits.” We use data from a relatively unused section of the National Survey of Small Business Finance (NSSBF, 1993) on credit limits, credit sources, and contract terms for firms with lines of credit from multiple banks. This lets us isolate the credit limit that each bank provides the same firm, eliminat...

Financial system of B&H is “bank dominated”, which means that banks (credit institution) is dominated financial institutions in the financial system. Banks have major role in financial intermediation process between deficit and surplus money unites. Having on mind specific features of financial systems in Bosnia and Herzegovina it’s important to analyses characteristics each segment of fi...

Credit risk management is a process in which banks estimate probability of default (PD) for each loan applicant. Data sets of previous loan applicants are built by gathering their data, and these internal data sets are usually completed using external credit bureau’s data and finally used for estimating PD in banks. There is also a continuous interest for bank to use rule based classifiers to b...

Enterprise risk management (ERM) has become an important topic in today’s more complex, interrelated global business environment, replete with threats from natural, political, economic, and technical sources. Banks especially face financial risks, as the news makes ever more apparent in 2008. This paper demonstrates support to risk management through validation of predictive scorecards for a la...

The use of Monte Carlo simulation for evaluation of financial risk of an information technology project selection decision is described. A major Thai bank considered the opportunity to expand credit card operations through information technology (IT). Alternatives considered were in-house development and outsourcing. There were many strategic reasons for the initiative. However, there were also...

JEL Classification C12; C23; G21; G32. The only way to ensure a well-informed response to bank risks is by ensuring transparent disclosures that flourish with potential synergy. This study investigates the impact of bank disclosures on credit risk where panel data are used. PCSE and FGLS regression models are applied to a sample of 32 commercial banks in Bangladesh from 2010 to 2014. The result...