A model of loan negotiation between a bank and a firm is applied to a situation when the borrowing producer receives support from the government in the form of a sales or investment subsidy. A pre-condition of obtaining government support is the company's expenditure in the form of a lobby...

This paper examines estimations of the expected losses of loans and the provisioning techniques imposed by Czech regulatory norms. The current Czech regulatory quidelines define the criteria for loan classification and specify the minimum coefficients used for creating provisions. These...