Article refers to the issue of credit risk management in commercial banks. Particular attention is paid to the problem of stress testing. In addition, methods are presented that allow prediction of the losses of the portfolio in the context of extreme events relating to the crises of financial...

Following the extra ordinary decision to bail in the unsecured depositors and restructure the two main banks and the near complete destruction of the country’s economic business model as an International Financial Centre, the author considers the changes necessary to rebuild the economy of...

Through this paper the author discusses the phenomenon of excessive Government borrowing and the factors that lead Governments to be so dependent on financial markets. It is argued that the combined effect of unregulated financial intermediaries, hedge funds and Credit Rating Agencies in...

Bank’s major approach in her internal rating system is credit scoring valuation which focused on corporates’ idiosyncratic risks and based on their financial indexes. Hence, an influence on corporates’ credit risks by business variation is not considered in her system. We model the effect...

Banks operating in a regulated environment need to operate within the fiscal, monetary, political and legal regulations; customer tastes, habits and demand; and input supply changes. Changes in these require adjustments in the bank’s operations. Coping with these require finance and instant...

That the United States and the world experienced a major financial crisis and is still struggling to recover comes as no surprise to most. Less well known is the fact that over 400 commercial banks and thrifts have failed in the U.S. since 2008. This paper attempts to understand why so many...

The present paper measured the efficiency of Islamic banks during economic troubles of 2006-2009 to address the question if Islamic banks were efficient and stable. This paper addresses this question by measuring efficiency through employing the on-parametric technique, Data Envelopment Analysis...

Islamic banking is considered as alternative to conventional banking. It focuses on profit/loss and risk sharing, than interest based deposit/lending followed in conventional banking. Conventional Banking cherishes a long history while Islamic banking gained importance in last few decades. The...

This paper investigates the determinants of banking system fragility by underlining the impact of bank liberalization on banking stability during the process of financial liberalization in emerging and developed countries. To this effect, we adopted a panel model with spatial dependency from a...

The level of default in financial institutions is a key piece of information in the activity of these organizations and reveals their level of risk. This in turn explains the growing attention given to variables of this kind, during the crisis of these last years. This paper presents a method to...