With economic development, the credit card business has entered a stage of rapid development. Using quantitative methods of modeling to analyses and predicts the consumers use the credit card behaviors. It is one of hot project in the experimental economics, and it is important for avoiding credit risk. The essay based on a simple NetLogo simulation model to simulate individual consumers and ec...

We propose a theory of credit lines provided by banks to firms as a form of monitored liquidity insurance. Bank monitoring and resulting revocations help control illiquidityseeking behavior of firms insured by credit lines. The cost of credit lines is thus greater for firms with high liquidity risk, which in turn are likely to use cash instead of credit lines. We test this implication for corpo...

Consumer credit risk analysis plays a significant role in stabilizing a bank’s investments and in maximizing its profits. As a large financial institution, Bank of America relies on effective risk analysis to minimize the net credit loss resulting from its credit products (e.g. mortgage and credit card loans). Due to the size and complexity of the data involved in risk analysis, risk analysts a...

unreliability of financial statements in iran has urged this country’s financial services industry management to manipulate practices by which they could gain reliable risk scores for borrowers. this research extracts the most influential qualitative factors that would impact the default of a business relationship borrower. solicitation of the factors is done through delphi methodology. the mea...

the letter of credit as a method of smoothing international payment is a conditional security and obligation to pay the customer bank (issuing bank) to seller (applicant). for this purpose, the letters of credit may be considered as the most usual method of payment of goods price in international trade. the classic form of letters of credit is the commercial letters of credit whose financial ob...

Nowadays, one of the most important topics in risk management of banks, financial, and credit institutions is credit risk management. In this research, the researchers used survival analytic methods for credit risk modeling in terms of the conditional distribution function of default time. As a practical task, the authors considered the reward credit portfolio of Tose'e Ta'avon Bank of Guilan P...

Previously circulated under the title \Banks and credit derivatives: Is it always good to have more risk management tools?" Abstract We model the eeects on banks of the introduction of a market for credit derivatives; in particular, credit default swaps. A bank can use such swaps to temporarily transfer credit risks of their loans to others, reducing the likelihood that defaulting loans trigger...

BanK oF canaDa FinanciaL SYStem reVieW JUne 2011 obtain credit that they might not have been able to obtain otherwise . thus, if the associated risks—including both credit risk and liquidity risk—are properly managed, mBF can be a welfare-enhancing financial innovation . But the mBF sector involves a wide range of activities with different levels of benefits and risk . at the riskier end of the...

A large literature on the effects of bank consolidation focuses on direct efficiency gains for participating banks and market power effects. The special nature of credit markets suggests that indirect informational effects for borrowers may be generated by bank consolidation. In particular, borrowers that depend on relationship-based lending may face a reduction in credit availability because s...

The corporate credit risk literature has many studies modelling the change in the credit risk of corporate bonds over time. There is far less analysis of the credit risk for portfolios of consumer loans. However behavioural scores, which are commonly calculated on a monthly basis by most consumer lenders are the analogues of ratings in corporate credit risk. Motivated by studies in corporate cr...