In recent years, after the global financial crisis, the issue of credit risk management has received increased attention from international regulators. Credit risk management frameworks are often not sufficiently integrated within the organization, t...
The rapid growth of the consumer credit card market has introduced substantial regulatory and risk management challenges. To address these challenges, financial institutions increasingly adopt advanced machine learning models to improve default predi...
Many industries put on a show of sustainability to draw in investors even though they are not financially viable. This study examines how real-earnings management (REM) moderates the relationship between credit risk (CR) and financial sustainability...
Online consumer credit services play a vital role in the contemporary consumer market. To foster their sustainable development, it is essential to establish and strengthen the relevant risk management mechanism. This study proposes an intelligent man...
This paper explores how credit risk management and human capital development sustain financial stability in microfinance institutions. Both qualitative and quantitative research methods allow this study to investigate credit risk management strategie...
This study examined credit risk management and return on equity of Nigerian deposit money banks (DMBs) twelve (12) years (2010–2021) post-adoption of the common accounting year-end as mandated by the Central Bank of Nigeria (CBN) in 2009. Our d...
This study investigates the prediction of small and medium-sized enterprise (SME) default rates in Republic of Korea by comparing the performance of three prominent time-series forecasting models: ARIMA, SARIMA, and Prophet. The research utilizes a c...
Despite the need for preserving the carbon pools in fire-prone southern European landscapes, emission reductions from wildfire risk mitigation are still poorly understood. In this study, we estimated expected carbon emissions and carbon credits from...
An empirical study was conducted to determine the impact of different types of risk on the performance management of credit rating agencies (CRAs). The different types of risks were classified as operational, market, business, financial, and credit....
This article deals with the issue of managing bank credit risk using a cost risk model. Modeling of bank credit risk management was proposed based on neural-cell technologies, which expand the possibilities of modeling complex objects and processes a...
This paper considers the impact of the composition of the top management team on the credit default risk of the firm. Finance theory suggests that shareholders prefer higher levels of risk than the risk-averse executives managing the firm. Increasing...
Nigerian banks encounter persistent difficulties in efficiently managing and disclosing credit and liquidity risks, considerably affecting their financial performance and shareholders’ confidence. This study, therefore, examined the effect of r...
This study investigated the impact of banking management on credit risk using a sample of Indian commercial banks. The study employed dynamic panel estimations to evaluate the link between banking management variables and credit risk. The empirical r...
In credit risk, scoring models based on logistic regression have been developed to optimize the default risk assessment. However, these models require complex feature engineering, and their accuracy worsens as the arrears progresses. This study propo...
This paper investigates credit risk management as a dynamic system. Panel Vector Autoregression (PVAR) is employed to model interrelationships among four key components: Non-Performing Loans (NPLs), Loan Loss Provision (LLP), loan charge-off (LCO) an...
Financial institutions increasingly rely on data-driven decision systems; however, many operational models remain purely predictive, failing to account for confounding biases inherent in observational data. In credit settings characterized by selecti...
The economic crisis of 2008 has highlighted the ineffectiveness of the banks in their disbursement of mortgages which caused the spread of Non-Performing Loans (NPLs) with underlying real estate. With the methods stated by the Basel III agreements, a...
This paper addresses the problem of modeling credit risk for multi-product and global loan portfolios. The authors presented an improved version of the Basel Committee’s one-factor model for capital requirements calculation. They examined whether lat...
Credit operations are fundamental in the banks’ activities and provide a significant share of their income. Under an increased demand for credit resources, credit risks are growth. It keeps the importance of the problem of an increase in the efficien...
This study aims to analyze text data obtained from Turkish phone calls to manage credit risk in the banking sector and predict whether customers will fulfill their payment promises. Data cleaning was identified as a critical step to improve the quali...
Traditionally, business risk management models have not taken into consideration household composition for the purposes of credit granting or project financing in order to manage the risk of default. In this research, an improvement in the risk manag...
The financial sector’s role is undeniably crucial in modern economies. Yet, this sector often attracts criticisms. Of particular concern is the negligence of proper credit risk management, which may undermine (macro)economic stability. The abse...
Risk management is one of the most important branches of business and finance. Classification models are the most popular and widely used analytical group of data mining approaches that can greatly help financial decision makers and managers to tackl...
This article introduces a new approach for dealing with the diversification/concentration risk of fixed income assets. Because Government bonds, corporate bonds, and mortgage backed securities constitute a large proportion of the assets of institutio...
Accurate corporate credit ratings are essential for financial risk assessment; yet, traditional methodologies relying on manual evaluation and basic statistical models often fall short in dynamic economic conditions. This study investigated the poten...
Background: The modern credit card system is critical, but it has not been fully examined to meet the unique financial needs of a constantly changing number of manufacturers and importers. Methods: An intelligent credit card system integrates the fea...
This study examines the relationship between environmental, social, and governance (ESG) factors and corporate financial performance. Specifically, we study various individual ESG categories, both ESG strengths and concerns, and aggregate ESG factor...
There is an increasing influence of machine learning in business applications, with many solutions already implemented and many more being explored. Since the global financial crisis, risk management in banks has gained more prominence, and there has...
We consider a system where the asset values of firms are correlated with the default thresholds. We first evaluate the probability of default of a single firm under the correlated assets assumptions. This extends Merton’s probability of default of a...
The intricate relationship between financial fraud and credit risk, and their combined impact on banking stability, is a vital and under-researched aspect of financial system integrity. To fill this knowledge gap, this study embarked on a thorough bi...
Roughly a decade ago, the Chinese government implemented a green credit policy aimed at lowering emissions from highly polluting corporations through improving information disclosure quality during the loan process. According to policy guidelines, ba...
Advanced parametric financial instruments, like weather index insurance (WII) and risk contingency credit (RCC), support disaster-risk management and reduction in the world’s most disaster-prone regions. Simultaneously, satellite data that are...
The rapid expansion of small and medium enterprise (SME) lending has intensified the need for accurate and interpretable credit risk forecasting. Financial institutions must anticipate potential business loan delinquency to maintain portfolio stabili...
A recently introduced accounting standard, namely the International Financial Reporting Standard 9, requires banks to build provisions based on forward-looking expected loss models. When there is a significant increase in credit risk of a loan, addit...
This study examines macroeconomic risk factors to investigate how they affect working capital management (WCM) and, ultimately, firm performance. Additionally, we examine the effect of credit default swaps (CDSs) as a countermeasure for WCM in the pr...
This paper empirically evaluates the impact of ownership structure on the cost of credit in US banks. It does so by comparing their grouped option-adjusted credit spreads on the outstanding debt issues. As the overall risk of the creditors is reflect...
Credit risk measurement remains a critical field of top priority in banking finance, directly implicated in the recent global financial crisis. This paper examines the dynamic linkages between credit risk migration due to rating shifts and prevailin...
Unsupervised classification is used in credit risk assessment to reduce human resource costs and make informed decisions in the shortest possible time. Although several studies show that support vector machine-based methods have better performance in...
This research explores the impact of financial indicators on the credit ratings of companies listed on the S&P 500, employing a Sys-GMM model to address endogeneity concerns. Three independent variables categorized as market and survival factors...
Banks make profits from the difference between short-term and long-term loan interest rates. To issue loans, banks raise funds from capital markets. Since the long-term loan rate is relatively stable, but short-term interest is usually variable, ther...
A challenge in enterprise risk measurement for diversified financial institutions is developing a coherent approach to aggregating different risk types. This has been motivated by rapid financial innovation, developments in supervisory standards (Bas...
The aim of the research presented in the article was to analyse the legitimacy of the use of scoring models in banking activities, together with the assessment of the effectiveness of this tool in reducing the high value of the NPL ratio in Polish co...
Contingent Convertible (CoCo) is a hybrid debt issued by banks with a specific feature forcing its conversion to equity in the event of the bank’s financial distress. CoCo carries two major risks: the risk of default, which threatens any type o...
The Solvency II regulatory framework requires European insurance companies to guarantee their solvability and stability by retaining enough Own Funds to cover future unexpected losses at a given confidence level. A Standard Formula approach is provid...
In numerous Central and Eastern European (CEE) countries, the global financial crisis as well as the unpegging of the foreign exchange rate of the Swiss franc (CHF) against the euro amplified the repayment troubles of households with the outstanding...
Previous research indicates that small-loan financing is a highly complex process, particularly when public sources provide financial support. This study applies propensity score matching to improve the effectiveness of closer inspection systems. Spe...
Agriculture, a sector vulnerable to climate change, relies heavily on debt to invest in modern technology for efficiency and increased production in the face of changing climatic conditions. Despite this, a large group of smallholder farmers in South...
This study explores China’s green credit policy from a credit risk perspective. Green finance has been growing rapidly in China since the government issued its Green Credit Policy. The objective of this study is to explore whether green loans a...
In the published paper [...]
COVID-19 has created a strong demand for supply chain finance (SCF) for small and medium-sized enterprises (SMEs). However, the rapid development of SCF leads to more complex credit risks. How to effectively discriminate and manage SMEs to reduce cre...
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