Credibility is the bedrock of any crisis stress test. The use of stress tests to manage systemic risk was introduced by …

The traditional loans pricing methods are usually based on risk measures of individual loan's characteristics without … more suitable for measuring the unique risk characteristic of SMEs loans. Empirical evidence shows that compared with the … rating, while higher loan interest rates from customers with lower credit rating, could thus be able to provide higher risk …

derivatives' trading volume, default risk, and on the welfare in the banking sector. First, we develop a stylized banking sector … margining always reduces default risk, we find that there exist situations in which margining increases default risk, reduces …

as the benchmark of comparison in mandatory stress test exercises. For risk management functions, a bank's own stress …