We apply a methodology for analyzing bank credit risk in Israel, which distinguishes between contagion and correlation on the one hand, and risk factors that are macroeconomic, sectoral and idiosyncratic on the other. Credit risk may be correlated because the observed and unobserved drivers of...

In this paper, we examine the characteristics of firms with bank credit that issued bonds on the Tel Aviv Stock Market (TASE) during the period 2003–07. The purpose of the research is to determine how the expansion of the nonbank credit market has affected the risk of bank credit. The analysis...