This paper examines estimations of the expected losses of loans and the provisioning techniques imposed by Czech regulatory norms. The current Czech regulatory quidelines define the criteria for loan classification and specify the minimum coefficients used for creating provisions. These...

We study both theoretically and empirically the interdependence of lending decisions in differentcountry branches of a multinational bank. First, we model a bank that delegates the management of itsforeign unit to a local manager with non-transferable skills. The bank differs from other...