liability valuation, on the usefulness of the capital adequacy ratio in the evaluation of bank default risk by credit rating … affected by the fair value measurement under the balance sheet approach. We adopt Demerjian’s (2011) approach to develop a bank … capital adequacy ratio and issuer rating, we find that this positive correlation is significantly weakened as a bank …

explained better by a bank's current balance sheet composition, the longer the forecast horizon. The opposite holds for banks …

Most of the assets on the balance sheet of a typical bank are illiquid. Therefore, liquidity risk is one of the key … liquidity stress event (LSE). Whether or not a bank decides to liquidate an asset depends on its liquidation strategy. The …