Credit risk is perhaps the oldest and most challenging risk for banks. The risk emanates from the probability that borrowers will default on terms of debt, subsequently putting the capital of a bank in jeopardy. This concern has resulted in several attempts to manage the exposure of banks to...

Credit risk is perhaps the oldest and most challenging risk for banks. The risk emanates from the probability that borrowers will default on terms of debt, subsequently putting the capital of a bank in jeopardy. This concern has resulted in several attempts to manage the exposure of banks to...