This paper analyses how the introduction of the IRB approach may have affected banks' lending to enterprises, lending … margins and portfolio quality in Norway. Our results show that the IRB banks' lending margins decreased compared with the … standardised approach banks following the introduction of the IRB approach. Growth in lending to the corporate market was also …

We present a banking model with imperfect competition in which borrowers' access to credit is improved when banks are … able to transfer credit risks. However, the market for credit risk transfer (CRT) works smoothly only if the quality of … loans is public information. If the quality of loans is private information, banks have an incentive to grant unprofitable …

Modelling portfolio credit risk is one of the crucial challenges faced by financial services industry in the last few …