This paper analyzes the impact of US firms’ equity risk on bank lending standards and on the macroeconomy for two groups: small and medium-large firms. The results indicate that a higher level of firm risk leads to a higher percentage of banks tightening their lending standards on commercial...

Operational risk constitutes a large portion of a bank’s risk exposure. Unlike other financial risks, operational risk is classified as a pure risk (only an opportunity of a loss), as it always leads to a financial loss for a bank. The failure to mitigate and manage operational risk...

This study explores the influence of funding liquidity risk and several control variables on Islamic rural banks’ asset risk in Indonesia. Our study analyzes Islamic rural banks comprising 142 Islamic banks with quarterly data from 2013: Q1 to 2018: Q4. Panel regression is then employed. We...

This paper proposes and examines a new structural risk of default model for banks in frictional and fuzzy financial markets. It is motivated by the need to fill the shortcomings of probability-based credit risk metric models that are characterised by unrealistic assumptions such as crisply...

This study aims to analyze the effect of the financial health of Indonesian commercial banks on financial performance with good corporate governance as an intervening variable. This study utilizes the risk-based bank rating (RBBR) method with secondary data by examining annual reports of 41...

Credit activities are an essential commercial bank activity. Therefore, preventing and limiting credit risks is vital for their credit activities. The Covid-19 epidemic is still ongoing. In 2021, 30 banks listed bad debts of more than 113 trillion VND, a 26% increase relative to 2020. Vietnam...

Equity-based financing (EBF) is an Islamic bank (IB) financing type that promotes justice, spirituality, and Islamic values. However, data shows that IBs still have low EBF. The researcher noted that with EBF, there is information asymmetry, agency problems and the potential for moral hazards,...