We investigate whether corporate social responsibility (CSR) ratings affect the syndicated loan spreads paid by European listed firms. By performing ordinary least squares (OLS) pooled regressions on a sample of 1101 syndicated loans granted to Europ...
In this article, a risk-adjusted return on capital (RAROC) valuation scheme for loans is derived. The critical assumption throughout the article is that no market information on a borrower’s credit quality like bond or CDS (Credit Default Swap)...
The purpose of this paper is to investigate the intertemporal relationship between the non-performing loan ratio and bank lending and to analyze factors affecting loan growth using data from Mongolian commercial banks. There has been a lack of resear...
We explore how expansionary monetary policy (EMP) influences bank loan loss provisioning. We find that banks’ discretionary loan loss provisions (DLLPs) increase during periods of EMP. This effect is stronger for banks with greater risk-taking,...
The main objective of this paper is to investigate the determining factors of loan delinquencies from the perspective of borrower attributes and loan characteristics. Empirical results indicated that the borrower-lender distance factor, collateral, e...
It is widely recognised that the ability of e-commerce businesses to predict conversion probability, i.e., acceptance probability, is critically important in today’s business environment. While the issue of conversion prediction based on browsi...
We investigated how a borrower’s adverse environmental, social, and governance incidents affect bank loan contracts. Using a sample of 2001 publicly traded US firms during the period from 2007 to 2016, we found that loans initiated after the occurren...
We utilize the data of a very large UK automobile loan firm to study the interaction of the characteristics of borrowers and loans in predicting the subsequent loan performance. Our broader findings confirm the earlier research on the issue of subpri...
We analyze the loan portfolios of United States banks from 2013 to 2023, showing that high environmental, social, and governance (ESG) banks have larger shares of consumer loans and commercial loans and smaller shares of construction loans and real e...
In response to the call of the Chinese government to support low-carbon development, the issue has come to the view gradually as to whether the behaviors of banks’ green credit will contribute to easing their own credit risk. To reflect the behaviors...
With the development of credit businesses, privacy data leakage and data accuracy in loan transactions among different banks tend to be worrisome issues hindering the prosperity of the industry. To address the problem, we propose a blockchain-based c...
Agriculture is a major contributor to economic development in most developing nations, with smallholder farmers playing a critical role, but their productivity and growth are impeded by a lack of access to agricultural loans. The affordability of loa...
In the scientific literature, there is a lack of a systematic approach to credit risk factors. In addition, insufficient attention is still paid to analysing the macroeconomic factors of consumer loan credit risk. Thus, this research aims to evaluate...
By designing credit contracts with inversely related interest rates and collateral, banks can overcome the problems of adverse selection and moral hazard when there is an informational asymmetry in competitive credit markets. One salient result point...
This paper studies the peer-to-peer lending and loan application processing of LendingClub. We tried to reproduce the existing loan application processing algorithm and find features used in this process. Loan application processing is considered a b...
Bayesian inference has gained popularity in the last half of the twentieth century thanks to the wider applications in numerous fields such as economics, finance, physics, engineering, life sciences, environmental studies, and so forth. In this paper...
In order to stress test loan portfolios for the impacts of climate change, historical events need to be analyzed to create templates to stress test for future events. Using the 2012 Midwestern US drought as an example, this work creates a stress-test...
Recommending loan products to applicants would benefit many financial businesses and individuals. Nevertheless, many loan products suffer from the cold start problem; i.e., there are no available historical data for training the recommendation model....
Access to formal credit remains critical for business operations, particularly for firms unable to generate sufficient funds internally. Using the World Bank’s Enterprise Survey dataset, 2018, we analyzed 230 Kenyan firms that applied for loans...
The issue of non-performing loans (NPLs) in a bank’s portfolio is important for a bank’s stability and sustainability. Their increased presence indicates a potential worsening of the economy and a lower quality of the bank’s assets....
This study investigates how managers choose between alternative earnings management mechanisms among syndicated loan borrowers. Specifically, it examines the trade-off between accrual-based earnings management (AEM) and real activities manipulation (...
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...
With two-stage least squares and LS models, this paper investigates the effects of real estate investment and loan preference on national happiness with data of 31 provinces in China from 2000 to 2018. The conclusions are that a rapid growth of real...
Uncertainty in economic environment leads economic agents to act cautiously. In this paper, we postulate that such uncertainty leads banks to charge higher interest rate on loans. Measuring aggregate country-level economic uncertainty with the World...
This study examined the factors associated with consumers’ decisions to use payday loans. Using a sample of 24,201 respondents from the 2015 National Financial Capability Study (NFCS), structural equation modeling was used to analyze the relati...
This paper is devoted to determining an optimal investment strategy for a defined-contribution (DC) pension plan with deposit loan spread under the constant elasticity of variance (CEV) model. As far as we know, few studies in the literature have tak...
In this paper, we consider a stochastic diffusion process able to model the interest rate evolving with respect to time and propose a first passage time (FPT) approach through a boundary, defined as the “alert threshold”, in order to eval...
“The core purpose is to explore the relationship between competition, loan quality, ownership structure, and risk for MENA economies.” In addition, this study examines the financial stability level of dual banking and explores the bidirec...
Loan loss provision is an important accounting accrual in the banking sector. There have been numerous debates about the determinants of loan loss provision in several contexts. This study extends the debate by investigating the determinants of bank...
Numerous people are applying for bank loans as a result of the banking industry’s expansion, but because banks only have a certain amount of assets to lend to, they can only do so to a certain number of applicants. Therefore, the banking indust...
Public financial loans are very complex. However, previous research has largely neglected the effective management of public funds. More specifically, how to maintain the optimal balance between small businesses and loan providers for managing public...
This paper studies the joint distribution of the default and prepayment losses for a large portfolio of loans, based on a bottom-up approach. The repayment behaviors of loans in the portfolio are determined by both systematic and idiosyncratic risk f...
Because India has one of the world’s fastest-growing economies, the Indian banking sector is essential to the country’s reform. The approval of home loans to customers is one of the crucial tasks carried out by Indian banks. The risk of l...
The days of long lines at banks and piles of paperwork are long gone. The lending landscape has been completely transformed by digital loans, which provide a quick, easy, and frequently paperless transactions. A payee can apply for a digital loan any...
This paper aims to compare the accuracy of financial ratios, tax arrears and annual report submission delays for the prediction of bank loan defaults. To achieve this, 12 variables from these three domains are used, while the study applies a longitud...
Loan default prediction is a critical task for financial institutions, directly influencing risk management, loan approval decisions, and profitability. This study evaluates the effectiveness of machine learning models, specifically XGBoost, Gradient...
The aim of this study is to investigate the impact of delegated monitoring by a group leader and peer monitoring by group members on loan defaults in a group-based lending program in Vietnam. The data used in the study were collected from a questionn...
While many studies have focused on assessing performance, studies that pivot on growth itself are limited. To contribute in this area, this study used the Stimulus-Organism-Response (SOR) Model as its foundation in order to explore how inflation and...
Peer-to-peer lending, a novel element of Internet finance that links lenders and borrowers via online platforms, has generated large profits for investors. However, borrowers’ missed payments have negatively impacted the industry’s sustai...
This paper explores the political debate on student loan forgiveness from a religious (Christian) ethical perspective. In so doing, I answer the three specific questions. First, what are the prospects and limits of different political approaches to t...
23 April 2020
Indebtedness is associated with poor health outcomes, and problem gambling may contribute to indebtedness through consumer credits related to gambling expenses. The assessment of consumers’ applications for loans may be an opportunity to detect...
Decentralized finance (DeFi) has exploded in popularity with a billion-dollar market cap. While uncollateralized lending, known as a flash loan, emerged from DeFi, it has become a primary tool used by attackers to drain investment tokens from DeFi ne...
Reducing the urban–rural income gap stands as a pivotal factor in attaining sustainable economic development. Policymakers and researchers have focused on whether digital inclusive finance can narrow the urban–rural income gap. Utilizing...
This study develops a machine learning framework to improve the prediction of automobile loan defaults by integrating explainable feature selection with advanced resampling techniques. Using publicly available data, we compare Logistic Regression, Ra...
The number of loan requests is rapidly growing worldwide representing a multi-billion-dollar business in the credit approval industry. Large data volumes extracted from the banking transactions that represent customers’ behavior are available,...
Education is considered an investment in human capital that is gained at the cost of knowledge acquisition. This cost is borne by the beneficiary along with subsidy provided by the government, if any, that is mainly collected through tax revenues. Th...
This study examines data from the U.S. 2018 and 2019 Survey of Household Economics and Decision making (SHED) to understand the association between student loan debt and emergency-saving decisions, including the moderating role of financial knowledge...
The paper analyzes the determinants of the loan loss provision (LLP) of 22 commercial banks in Pakistan from 2010 to 2017. The motive of the research is that LLP is a measure of credit risk as a proxy for bank risk-taking behavior profits and banks&r...
This study examines the relationship between student loan debt and civic engagement among college graduates, with particular attention to differential effects by field of study. Drawing on data from the College and Beyond II dataset, this research an...
Return–risk models are the two pillars of modern portfolio theory, which are widely used to make decisions in choosing the loan portfolio of a bank. Banks and other financial institutions are subjected to limited-liability protection. However,...
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