This paper conducts multiple discriminant analysis on a sample of 58 commercial banks for which the IBCA provides ratings over a two-year period. Hence, the sample consists of 116 observations. Employing 15 ratios, the multiple discriminant analysis misclassifies eight of 52 low-rated banks...

This paper examines for the first time the impact of problem loans on Japanese productivity growth. We exploit a new data set of Japanese problem loans classified into two categories: bankrupt and restructured loans. We opt for a novel and flexible productivity growth decomposition that allows...