The development of credit card application should be in proportion with the expectation of terrible credit hazard on the grounds that it doesn't utilize security collateral as guarantee. The use of credit scoring can be utilized to help the credit hazard assay in deciding the customer's eligibility. Data mining has been demonstrated as a significant tool for credit scoring. The objective of thi...

following changes in economic fields, monetary transmission mechanism has been equipped with different approaches. for example, introducing and then applying the first draft of basel committee’s capital requirement has portrayed new horizon in the monetary transmission mechanism discussions. while as the first step, it has been emphasized on the static role of bank’s capital; as the second step...

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...

The paper attempts to determine whether there exists a relationship between the on-time payments of credit card owners of a Commercial Bank and their demographic characteristics (particular personal and family status). It evaluates the statistical technique of discriminant analysis on credit card customers’ data of a Greek Commercial Bank and examine whether it is possible to create a model eva...

Prior work has identified binding credit constraints during recessions. We assess whether corporate diversification alleviates these constraints. We use relative-to-industry growth in sales and growth in inventories as measures of a firm’s ability to fund its activities. We find that during recessions, industry-adjusted sales growth rates drop more for bank-dependent focused firms than for bank...

With an international dataset of credit default spreads as a credit risk measure, we propose a novel empirical framework to identify the structure of credit risk network across major financial institutions around the recent 2007-2008 global credit crisis. The findings directly shed light on credit risk transmission in a financial network and help find systemically important financial institutio...

BIS Working Papers are written by members of the Monetary and Economic Department of the Bank for International Settlements, and from time to time by other economists, and are published by the Bank. The views expressed in them are those of their authors and not necessarily the views of the BIS. Abstract Motivated by the frequently observed link between commercial property price volatility and b...

This paper examines the effects of tying microenterprise credit cooperatives (or “village banks”), with health and education services, using data from two Latin American countries, Ecuador and Honduras. Credit constraints particularly affect women (microentrepreneur) borrowers. Evidence suggests that mothers’ income increases are more likely to be spent on nutrition and other health improving e...

It is very important for bank to control the credit risk of guarantee loan or combinational loan by evaluating the joint default risk of different enterprises. Firstly we apply a combinational copula function to measure the joint default risk of two enterprises with credit rating information; secondly the default intensity model is intended to analyze the default time distribution; thirdly we u...