Cyclicality in the losses of bank loans is important for bank risk management. Because loans have a different risk …

We use a classic Merton credit risk framework to argue that Islamic Banking Institutions (IBIs) face less incentive to … take on risks than Conventional Banking Institutions (CBI). IBIs have less incentive for risk shifting both in and outside … analysis suggests that the loss absorption capacity of Islamic banks leads to less risk taking and a more stable banking system. …

We use a classic Merton credit risk framework to argue that Islamic Banking Institutions (IBIs) face less incentive to … take on risks than Conventional Banking Institutions (CBI). IBIs have less incentive for risk shifting both in and outside … analysis suggests that the loss absorption capacity of Islamic banks leads to less risk taking and a more stable banking system. …

. Less risk averse clients have a private incentive to free-ride and forgo individual insurance even when insurance optimises …

important for credit risk management as well as for regulation and systemic risk management. In this paper, we use 1927-1997 U …

We determine the magnitude and nature of systematic default risk using 1971{2009) default data from Moody's. We … disentangle systematic risk factors due to business cycle effects, common default dynamics (frailty), and industry … simultaneously. We find that all three types of risk factors (macro, frailty, industry/contagion) are important for default risk. The …