In general, the academin literature has paid its attention to market risk and credit risk and ignored operational risk, an "umbrella" term that includes problems with information systems, operational problems, breaches in internal control, fraud, or unforeseen catastrophes such as 9-11 or SARS....

The recent crisis was characterized by massive illiquidity. This paper reviews what we know and don't know about illiquidity and all its friends: market freezes, fire sales, contagion, and ultimately insolvencies and bailouts. It first explains why liquidity cannot easily be apprehended through...

Les entreprises en France ont recours à plusieurs banques quand elles ont des besoins financiers importants ou spécifiques ou lorsqu’elles pourraient rencontrer des difficultés d’accès au crédit. Fin 2008, elles ont chacune en moyenne 1,28 banque.

Do religious beliefs affect real economic decisions? We investigate this fundamental question by comparing default rates on conventional and Islamic loans using a comprehensive monthly dataset from Pakistan that follows more than 150,000 loans over the period 2006:04 to 2008:12. We find robust...

During the last financial crisis the Federal Reserve launched several extraordinary actions, including the creation of a number of new facilities for auctioning short-term credit, with the general aim of sustaining the financial sector and of ensuring adequate access to liquidity to financial...

In his basic model of debt renegotiation, BESTER [1994] argues that collateral is more effective if high risk projects are financed. This result, however, crucially depends on the definition of risk. Using the second-order stochastic dominance criterion introduced by ROTHSCHILD AND STIGLITZ...

Bilan des effets de l’allègement de la réglementation de l’usure sur l’accès au crédit des petites et moyennes entreprises (résumé du Rapport de la Banque de France au Parlement).

In addition to credit, market and liquidity risk, measuring and managing operational risk (risk associated with people, systems, processes and external events) is a great challenge for banks. In 2010, around HUF 35 billion in operational risk losses were reported in the banking sector overall,...

Shipping goods internationally is risky and takes time.  To allocate risk and to finance the time gap between production and sale, a range of payment contracts is utilized.  I study the optimal choice between these payment contracts and their implications for trade.  The equilibrium contract...