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First externalities risk due to the size of the companies or the principle that large companies are also at risk of bankruptcy (too big to fail) are examined. The problem is illustrated by a case in which extreme risks with negative consequences for savers and investors are taken. If we...
Persistent link: https://www.econbiz.de/10011110979
banks due to wrong signals about projects' probability of success. Our results are consistent with recent empirical studies …
Persistent link: https://www.econbiz.de/10005025689
The binary and multinomial logit models are applied for prediction of the Russian banks defaults (license withdrawals … accurate prediction of a bank’s financial insolvency, which is the focus of interest for the Russian Deposit Insurance Agency …
Persistent link: https://www.econbiz.de/10011258099
regarding the financial management of local governments and on data from banks. Until 2011, the repayment of the bonds issued … managed by the banks. The comprehensive restructuring of the local government system as a whole and a further changing of debt …
Persistent link: https://www.econbiz.de/10011258086
Asymptotic Single Risk Factor (ASRF) model is used to derive the regulatory capital formula of Internal Ratings-Based approach in the new Basel accord (Basel II). One of the important assumptions in ASRF model for credit risk is that the given portfolio is well diversified so that one can easily...
Persistent link: https://www.econbiz.de/10005619956
Since the capital structure affects the performance of financial institutions confronted to liquidity constraints, the Economic Capital is determined by the maximisation of value. Allowing economic decisions to be characterised by a distorted probability distribution, so assessing the attitude...
Persistent link: https://www.econbiz.de/10005790336
the necessity of resilience of banks towards risks and sudden financial shocks. The riskiness of banks assets and its … equity are two important factors for valuation of banks. These risks can be incorporated in market valuation only through … value and volatility of bank’s assets for a random sample of 13 Public and 8 Private sector banks in India over the period …
Persistent link: https://www.econbiz.de/10011259139
Over the course of the recession during the last six years, central bank officials in Croatia have on numerous occasions stated there is a strong need for structural reforms in Croatia and that there is no need for monetary policy reforms. This short paper investigates why the CNB is only...
Persistent link: https://www.econbiz.de/10011268351
Financial intermediaries perform indirect financing, and in this context, commercial banks are very important … monetary policy is closely linked to the functioning of the banking system. Kosovo’s Commercial Banks performance is … banks are greatly and directly affected by the net interest margin, provisions for loan losses, revenues and expenses by the …
Persistent link: https://www.econbiz.de/10011260910
towards major banks are safe has been fundamentally questioned. This put industrial corporates, who to support their business …
Persistent link: https://www.econbiz.de/10009353547