Assuming a risk-neutral bank and assuming household utility to be exponential, we show how under information symmetry … the covariance of income and loan repayments may explain higher household borrowings than in the case without default … that in a situation in which a household without default option would neither borrow nor save, the existence of a default …

change on household credit risk, we conducted CAWI interviews with 1,006 borrowers residing in different Polish voivodeships …This paper aims to assess the level of credit risk (from the perspective of default risk) among Polish households …' credit risk and exposes banks to losses. However, we find that households underestimate the credit risk that could arise from …

real estate out of household assets, borrowing in the form of short-term balloon payment loans, and the credit risk of low …-income indebted households. Against this backdrop, a sound and effective risk management system needs to be designed based on a proper …

As of year-end 2019, nonfinancial business debt (BD) and household debt (HD) as a share of GDP were at similar levels …

In fifteen European countries, China, and the US, stocks and business equity as a share of total household assets are … labor-income risk can explain much of this risk-taking pattern. Uncontrollable labor-income risk stresses middle …, middle-income households reduce (controllable) financial risk. Richer households, having less pressure, can afford more risk …

category. Background risk exerts a significant impact on household portfolios, resulting in a 'flight from risk', away from … households reduce their financial risk exposure when confronted with background risk. Our novel modelling approach - termed a … risk, and is unique in recovering for, any given risky asset class, the shares that are reallocated to a safer asset …

We show how to use panel data on household consumption to directly estimate households’ risk preferences. Specifically …, we measure heterogeneity in risk aversion among households in Thai villages using a full risk-sharing model, which we … then test allowing for this heterogeneity. There is substantial, statistically significant heterogeneity in estimated risk …

studies conducted in eleven countries to explore liquidity risk transmission. Among the main results is, first, that … explanatory power of the empirical model is higher for domestic lending than for international lending. Second, how liquidity risk … management across global banks can be important for liquidity risk transmission into lending. Fourth, there is substantial …

studies conducted in 11 countries to explore liquidity risk transmission. Among the main results is, first, that explanatory … power of the empirical model is higher for domestic lending than for international lending. Second, how liquidity risk … management across global banks can be important for liquidity risk transmission into lending. Fourth, there is substantial …