One of the latest innovative products of Islamic banks is the Islamic hirepurchase facility or Al-IjOErah Thumma al-Bayc (AITAB) which is designed to meet the current demand and avoid certain risks in the financing of consumer durables and motor vehicles. AITAB can be utilized to finance a wide...

This paper investigates the efficiency of the Malaysian Islamic banking sector during the period of 2001-2004. The efficiency estimates of individual banks are evaluated using the non-parametric Data Envelopment Analysis (DEA) method. The method allows for the decomposition of the technical...

Paper introduces the improved version of a credit scoring model which assesses credit worthiness of applicants for a loan. The scorecard has a two-level multilevel structure which nests applicants for a loan within microenvironments. Paper discusses several versions of the multilevel scorecards...

After the Asian financial crisis of 1997, it was confirmed that banks lend to their related parties in many countries. The question examined in this article is whether related lending functions to alleviate the problems of asymmetric information or transfers profits from depositors and minority...

The paper develops a banking framework where a welfare comparison is made between non-tradable demand deposit and equity contracts. Contrary to the existing literature that relies heavily on smooth preferences assumption to justify the liquidity insurance superiority of the ‘run-prone’ debt...

Motivated by current concerns over foreign currency exposures in emerging economies, we examine the currency denomination of business loans made in Bulgaria prior to the current crisis. We analyze information on the requested and granted currency for more than hundred thousand loans granted by...

This paper studies how credit constraints develop over bank relationships. I analyze a unique dataset of matched loan application and loan contract information and measure credit constraints as the ratio of requested to granted loan amounts. I find that the most important determinants of...

Im Mittelpunkt der gerade auch von solchen "atypischen Unternehmen" nach wie vor geäußerten Ängste stehen die durch das Basler Gremium geforderten Ratingsysteme, wobei Beobachter der Diskussion den Eindruck gewinnen können, als wäre das Rating von Kreditnehmern etwas völlig Neuartiges....

Im Rahmen des vorliegenden Bandes arbeitet der Verfasser heraus, dass es grundsätzlich auch für kleinere Banken möglich ist, entsprechende Verfahren einzuführen. Voraussetzung dafür ist allerdings, dass die Thematik seitens der Bank offensiv und engagiert angegangen wird, man sich...