A major advancement in risk management among large financial institutions has been the development of internal risk models.The models encompass institutions’ procedures and techniques for assessing portfolio risk. Commercial bank regulators in the U.S. and abroad have recognized that these “state of the art” risk-management tools provided a framework for addressing important shortfalls of curre...

Data mining is becoming strategically important area for many business organizations including banking sector. It is a process of analyzing the data from various perspectives and summarizing it into valuable information. Data mining assists the banks to look for hidden pattern in a group and discover unknown relationship in the data. Today, customers have so many opinions with regard to where t...

In financial markets, the main component of risk management is liquidity risk. Asset and Liability Management (ALM) strategy is concerned with managing all risks. Asset and liability management seeks to manage liquidity risk, which refers to both the liquidity of markets and which assets can be translated into cash. The liquidity is importantly affected by the management of banks’ balance sheet...

This paper presents a model of shadow banking in which the shadow and the traditional banking systems share a symbiotic relationship. The analysis shows that competition with an opaque and fragile shadow bank can bene…t the traditional bank, especially when the traditional bank faces liquidity risk stemming from collective actions by investors, such as runs. The opacity and fragility of the sha...

This paper presents a model of shadow banking in which the shadow and the traditional banking systems share a symbiotic relationship. The analysis shows that competition with an opaque and fragile shadow bank can bene…t the traditional bank, especially when the traditional bank faces liquidity risk stemming from collective actions by investors, such as runs. The opacity and fragility of the sha...

For an N players coordination games, Tanaka (2000) proved that the notion of N/2 stability defined by Schaffer (1988) is a necessary and sufficient condition for such a long run equilibrium in an evolutionary process with mutations (in the sense of Kandori, et. al. (1993)). We argue that the critical number in Schaffer’s stability is not unique in every application, but can vary with variables ...

One should recognise that, in contrast to a corporate firm, there is an underlying problem in assessing the capital structure of a bank. This problem rests mainly on the lack of clarity on how one could define, let alone determine, the location of the optimal. The reason for this is rooted in the differences in the ways the two types of organisations operate. For instance, while a corporate fir...

ith the development of trade and business throughout the world, needs to become more widespread financial dealings that led to the development of the business activities of banks and new banks were established. Banking and financial systems, credit risk management is a major problem. So check applicants' credit facility to repay the process is important and many methods have been proposed for t...

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...