Structural models of default can identify asset value dynamics and the location of the default boundary from either (observable) credit spreads or (latent) default probabilities. The latter approach uses historical default rates as proxies, which provide such low statistical power that...

As a result of the digital transition's information asymmetry, banks have generated a large number of non-performing loans to maximize profits, therefore endangering financial stability. In a complex and changing market environment, with sluggish economic growth and cross-industry integration,...