The new Capital Accord and banks’ lending decisions

Fabi, Fabrizio; Laviola, Sebastiano; Reedtz, Paolo Marullo

doi:10.1016/j.jfs.2005.09.002

Cited by 17 publications

(7 citation statements)

References 4 publications

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“…To form a system of quantitative indicators, the author used criteria for the selection of financial indicators, which are used in the works of various authors. These criteria are divided into two groups: theoretical (informativeness, comparability or compatibility, complexity, reliability) and analytical (minimum quantity, consistency, and validity; Fabi et al, 2005). The assessment of the market position of a financial institution is carried out by determining the growth rate of the volume of financial services provided by a financial institution in the reporting year, and also depends on the duration of business activity and other factors that are determined by the specifics of a financial institution' activities.…”

Section: Methodsmentioning

confidence: 99%

Retracted: Internal procedures of the risk‐oriented lending process in the bank

Ushanov

2022

Risk Manage Insurance Review

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Information about the financial condition of financial institutions is the basis for assessing the risk of their lending. In the conditions of economic instability, the validity and effectiveness of management decisions significantly depend on the quality of financial and analytical calculations. To take into account, the specifics of the activities of various types of financial institutions when assessing the risk of their lending, the author put forward a hypothesis about the advisability of clarifying the composition of indicators used to assess the creditworthiness of borrowers. The analysis of the creditworthiness of financial companies and credit unions has been carried out. It was found that, during 2020–2021, no financial institution had the highest creditworthiness; at the same time, financial companies were more capable of meeting loan obligations than credit unions. A system of quantitative and qualitative indicators has been formed using correlation and factor analysis to assess the risk of lending to the activities of financial companies and credit unions. Certain indicators are suitable for integral assessment, and, therefore, create the basis for improving the methodological approach to assessing the risk of lending to financial institutions.

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Section: Methodsmentioning

confidence: 99%

Retracted: Internal procedures of the risk‐oriented lending process in the bank

Ushanov

2022

Risk Manage Insurance Review

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“…Berger and Bonaccorsi di Patti (2006),Gropp and Heider (forthcoming),Froot and Stein (1998),Koziol and Lawrenz (2009),Marcus (1983),Mehran and Thakor (forthcoming), and Memmel and Raupach (2010) look at bank capital structure choices Cebenoyan and Strahan (2004),Fabi et al (2005),Gambacorta and Mistrulli (2004),Inderst and Mueller (2008). andThakor (1996) look at the relationship between capital and bank lending.…”

mentioning

confidence: 99%

Mapping Capital and Liquidity Requirements to Bank Lending Spreads

King

2010

SSRN Journal

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“…A wide literature on credit risk has taken into account financial factors or quantitative data in its studies (Fabi et al, 2005). The three factors that have the strongest explanatory power for a company's financial performance are profitability, leverage, and liquidity ratio (James & Hwan, 2006) and (Kanitsorn & Dessalegn, 2011).…”

Section: Financial Factormentioning

confidence: 99%

Early Warning Signals on Credit Risk Mitigation among SME’s in Malaysia

Bakar¹,

Rahim²,

Yahaya³

2022

IJARAFMS

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By combining financial and non-financial characteristics, the research creates a credit risk mitigation model for SME's. These variables were used to analyse the impact of owner education level, gender, and business age as an early warning signal to the credit risk mitigation. To analyse the impact of owner education level, gender, and business age as an early warning signal to the credit risk mitigation, the research developed a credit risk mitigation model for SME's by combining financial and non-financial characteristics. Utilizing all relevant information, a Multiple Discriminant Analysis (MDA) model was applied. 400 observations make up the final sample for the estimation model, of which half are distressed and non-distressed SME's, for the years 2015 to 2020. The prediction models perform relatively well in the financial and non-financial variables. This evidence shows that the models serve as efficient early warning signals and can thus be beneficial for monitoring and evaluation of credit risk.

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The new Capital Accord and banks’ lending decisions

Cited by 17 publications

References 4 publications

Retracted: Internal procedures of the risk‐oriented lending process in the bank

Retracted: Internal procedures of the risk‐oriented lending process in the bank

Mapping Capital and Liquidity Requirements to Bank Lending Spreads

Early Warning Signals on Credit Risk Mitigation among SME’s in Malaysia

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