Credit Expansion and Asset Correlation: Asking for Trouble?

2019 ◽  
Author(s):  
Amadeus Gabriel ◽  
Gabriel Giménez Roche
Keyword(s):  
Credit Expansion ◽  
Asset Correlation

Does Bank Branch Network Expansion Contribute to Credit Expansion? The Sri Lankan Experience

2012 ◽  
Vol 3 (1) ◽  
pp. 72-89 ◽  
Author(s):  
Manjula Kumara Wanniarachchige ◽  
Yasushi Suzuki
Keyword(s):  
Sri Lankan ◽  
Credit Expansion ◽  
Bank Branch ◽  
Network Expansion

scholarly journals Modeling Recoveries of US Leading Banks Based on Publicly Disclosed Data

Mathematics ◽  
2021 ◽  
Vol 9 (2) ◽  
pp. 188
Author(s):  
Pawel Siarka
Keyword(s):  
Recovery Rate ◽  
Credit Card ◽  
Factor Model ◽  
Critical Element ◽  
Federal Reserve Bank ◽  
Rate Analysis ◽  
Industry Standards ◽  
Risk Management Process ◽  
Credit Portfolio ◽  
Asset Correlation

The credit risk management process is a critical element that allows financial institutions to withstand economic downturns. Unlike the methods regarding the probability of default, which have been deeply addressed after the financial crisis in 2008, recovery rate models still need further development. As there are no industry standards, leading banks are modeling recovery rates using internal models developed with different assumptions. Therefore, the outcomes are often incomparable and may lead to confusion. The author presents the concept of a unified recovery rate analysis for US banks. He uses data derived from FR Y-9C reports disclosed by the Federal Reserve Bank of Chicago. Based on the historical recoveries and credit portfolio book values, the author examines the distribution function of recoveries. The research refers to a credit card portfolio and covers nine leading US banks. The author leveraged Vasicek’s one-factor model with the asset correlation parameter and implemented it for recovery rate analysis. This experiment revealed that the estimated latent correlation ranges from 0.2% to 1.5% within the examined portfolios. They are large enough to impact the recovery rate volatility and cannot be treated as negligible. It was shown that the presented method could be applied under US Comprehensive Capital Analysis and Review exercise.

Estimating the Net Fiscal Cost of a Child Tax Credit Expansion

2021 ◽  
Author(s):  
Jacob Goldin ◽  
Elaine Maag ◽  
Katherine Michelmore
Keyword(s):  
Tax Credit ◽  
Credit Expansion ◽  
Child Tax Credit

scholarly journals Does the Credit Cycle Have an Impact on Happiness?

2019 ◽  
Vol 17 (1) ◽  
pp. 183 ◽  
Author(s):  
Tinghui Li ◽  
Junhao Zhong ◽  
Mark Xu
Keyword(s):  
Fixed Effects ◽  
Well Being ◽  
Gdp Per Capita ◽  
Subjective Well Being ◽  
Fixed Effects Model ◽  
Credit Expansion ◽  
Transmission Channels ◽  
Credit Cycle ◽  
Per Capita ◽  
The Relationship

The 2008 international financial crisis triggered a heated discussion of the relationship between public health and the economic environment. We test the relationship between the credit cycle and happiness using the fixed effects model and explore the transmission channels between them by adding the moderating effect. The results show the following empirical regularities. First, the credit cycle has a negative correlation with happiness. This means that credit growth will reduce the overall happiness score in a country/region. Second, the transmission channels between the credit cycle and happiness are different during credit expansion and recession. Life expectancy and generosity can moderate the relationship between the credit cycle and happiness only during credit expansion. GDP per capita can moderate this relationship only during credit recession. Social support, freedom, and positive affect can moderate this relationship throughout the credit cycle. Third, the total impact of the credit cycle on happiness will become positive by the changes in the moderating effects. In general, we can improve subjective well-being if one of the following five conditions holds: (1) with the adequate support from the family and society, (2) with enough freedom, (3) with social generosity, (4) with a positive and optimistic outlook, and (5) with a high level of GDP per capita.

scholarly journals Financial sector and economic growth in the Republic of Croatia 1995-2005

2006 ◽  
Vol 51 (168) ◽  
pp. 109-120
Author(s):  
Damir Novotny
Keyword(s):  
Economic Growth ◽  
Foreign Currency ◽  
Foreign Debt ◽  
Financial Sector ◽  
Strong Increase ◽  
Credit Expansion ◽  
Public Consumption ◽  
Private And Public ◽  
The Republic ◽  
Global Economic Growth

Financial sector in the Republic of Croatia had a strong growth between 1995 2005.g. Liberalization of financial sector in 1999 led to an increase in bank foreign debt, which resulted in a strong increase in foreign currency reserves and appreciation of the national currency. The growth of the financial sector and credit expansion have been allocated in favour of private and public consumption, but not in industry investments. GDP growth didn't have the same momentum as financial aggregates. Economic growth, after a contraction in 1999 was within the average of global economic growth. Relying on neoclassical growth model, government and central bank didn't put in place the needed set of pro-active policies. Factor allocation was solely through private bank channels financing private consumption. If the sustainable economic growth and new employment are to be major macroeconomic goals, a new macroeconomic paradigm as combination of neclassical and neokeynesians approach will be needed.

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