This paper constructs a multiple regression model to evaluate the overdue risk of credit card holders. The results can identify the factors influencing the credit card holders’ overdue risk behavior in order to provide card issuing banks a decision-making reference in the investigation of credit card holders’ related characteristics and the relationship quality between the credit card holders a...

The Basel Committee on Banking Supervision from the Bank for International Settlement classifies banking risks into three main categories including credit risk, market risk, and operational risk. The focus of this study is on the operational risk measurement in Iranian banks. Therefore, issues arising when trying to implement operational risk models in Iran are discussed, and ...

Using the industrial organization approach to the microeconomics of banking we model a large (Monti-Klein) bank which is risk neutral and faces credit uncertainty in its loan business. The impact of capital adequacy regulation and the effect of changes in risk on deposit and loan rates are analyzed. We then show that capital adequacy regulation induces the bank to behave as if it were risk aver...

We investigate the interdependence of the default risk of several Eurozone countries (France, Germany, Italy, Ireland, Netherlands, Portugal, Spain) and their domestic banks during the period June 2007 May 2010, using daily credit default swaps (CDS). Bank bailout programs changed the composition of both banks’ and sovereign balance sheets and, moreover, affected the linkage between the default...

The aim of this paper is to present a model based on Multilayer perceptron neural networks to recognize bad or good credit customers. Credit risk is one of the major problems in banking sector. Banks are faced with credit Risk while doing their tasks. Credit risk is the probability of non-repayment of bank loan granted to lenders. Decreasing Credit Risk, banks may perform better duties and resp...

This paper examines the recent period of relatively low credit spreads in Japan, with particular emphasis on the market’s assessments of the credit risks of large Japanese banks implicit in the prices of credit derivatives. We extract the market-price implied likelihood of a credit event in the future, and explore the nature of the default risk premiums underlying recent changes in bank bond an...