In the last three decades, only developing countries dealt with the shadow of debt defaults but the recent European sovereign debt crises showed that even an high-income developed country might be locus of primary concern for sovereign debt insolvency. To deal with the Sovereign Debt...

Since its inception, the Basel III international regulatory framework for banks has manifested a number of weaknesses in tackling the idiosyncratic and systemic risks arising from highly leveraged credit institutions. The continuing reliance on internal rating models to calculate capital...