We examine the effect of differences between home and host regulations on the efficiency of foreign commercial banks in Kenya. First, efficiency scores are calculated using the Data Envelopment Analysis (DEA) approach after which Tobit regression is used to establish the regulatory variables...

Based on simulations of implied values for credit worthiness over a period of 5 years for 1000 consumers, we establish a case for the semi-markov models as a proxy for internal credit risk models for a portfolio of consumer loans. With ample calibration, we prove the robustness of the...