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The aim of this paper is to propose a methodology to estimate loss given default (LGD) and apply it to a set of micro-data of loans to SME and corporations of an anonymous commercial bank from Central Europe. LGD estimates are important inputs in the pricing of credit risk and the measurement of...
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After 1990, the crises in planned economies has resulted with accept of the free market system and disintegration of this country blocks. The transition economies are defined as process of approaching work to the free market system of markets. Privatization efforts especially in finance markets...
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