Credit Risk Mitigation Evidence in Auto Leases: LGD and Residual Value Risk

2004 ◽  
Author(s):  
Celine Vaessen ◽  
Hugues Pirotte ◽  
Mathias Schmit
Keyword(s):  
Credit Risk ◽  
Risk Mitigation ◽  
Residual Value

Credit Risk Management of Commercial Banks in Nepal

2019 ◽  
Vol 4 (1) ◽  
pp. 27-37
Author(s):  
Shreya Pradhan ◽  
Ajay K. Shah
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Credit Risk ◽  
Commercial Banks ◽  
Management Practices ◽  
Risk Mitigation ◽  
Mitigation Measures ◽  
Credit Risk Management ◽  
Loan Repayment ◽  
Credit Risk Assessment

The study is primarily focused on credit risk assessment practices in commercial banks on the basis of their internal efficiency, assessment of assets and borrower. The model of the study is based on the analysis of relationship between credit risk management practices, credit risk mitigation measures and obstacles and loan repayment. Based on a descriptive research approach the study has used survey-based primary data and performed a correlation analysis on them. It discovered that credit risk management practices and credit risk mitigation measures have a positive relationship with loan repayment, while obstacles faced by borrowers have no significant relationship with loan repayment. The study findings can provide good insights to commercial bank managers in analysing their model of credit risk management system, policies and practices, and in establishing a profitable and sustainable model for credit risk assessment, by setting a risk tolerance level and managing credit risks vis-a-vis the prevailing market competition.

Part II Commercial Banking, 8 The Standardized Approach

2018 ◽  
Author(s):  
Gleeson Simon
Keyword(s):  
High Risk ◽  
Credit Risk ◽  
Financial Institutions ◽  
Risk Mitigation ◽  
Balance Sheet ◽  
Commercial Banking ◽  
Short Term ◽  
Multilateral Development Banks ◽  
Rating Agencies

This chapter focuses on the standardized approach, which is the bedrock of the Basel system. Although many of the largest banks are internal ratings-based banks, there is probably no bank currently existing which does not use some elements of the standardized approach as part of its overall capital calculation. The discussions cover classification of exposures, credit conversion factors, and credit risk mitigation; ratings and rating agencies; exposures to sovereigns; multilateral development banks; exposures to banks and financial institutions; exposures to corporates; exposures to retail customers; commercial mortgage exposures; overdue undefaulted exposures; high-risk exposures; covered bonds; securitization exposures; short-term claims on financial institutions and corporates; fund exposures: and off-balance sheet items.

scholarly journals Islamic Versus Conventional Banks in Lebanon: An Empirical Study of Credit Risk Management

2018 ◽  
Vol 10 (8) ◽  
pp. 53
Author(s):  
Boutheina Hachem ◽  
Hiyam Sujud
Keyword(s):  
Risk Management ◽  
Empirical Study ◽  
Credit Risk ◽  
Risk Mitigation ◽  
Islamic Banks ◽  
Credit Risk Management ◽  
Credit Management ◽  
Management Processes ◽  
Conventional Banks ◽  
Conventional And Islamic Banks

The aim of this research is to compare conventional and Islamic banks in various aspects of credit risk management processes. The study used 200 questionnaires, collected from 21 traditional banks and 4 Islamic banks in Lebanon. The results found that differences in the various issues of credit management between Islamic and conventional banks. Islamic banks are more understanding, aware, and cautious in their approach than traditional banks. Islamic banks are more efficient in assessing and analyzing credit risk than conventional banks. Lastly, Islamic banks are more used to credit risk mitigation than traditional banks.

scholarly journals Optimizing Price of Credit Default Swaps for Dynamic Project System of Public-Private Partnership

2018 ◽  
Vol 2018 ◽  
pp. 1-10
Author(s):  
Ming Wu ◽  
Wenya Lv ◽  
Qiuji Sun
Keyword(s):  
Credit Risk ◽  
Operations Management ◽  
Risk Mitigation ◽  
Measurement Theory ◽  
Credit Default Swaps ◽  
Public Private Partnership ◽  
Risk Measurement ◽  
Private Partnership ◽  
Credit Default ◽  
Credit Risk Measurement

Most project operations management belongs to the type of public-private partnership (PPP), which is usually dynamic. This paper aims to propose a method for optimizing the price of credit default swaps (CDS) for the dynamic PPP system. This study investigates the credit risk measurement of PPP project financing and the pricing of risk mitigation instruments which are widely used in the case of immature markets in the early stage of China’s PPP development. Based on the credit risk measurement theory of the corporate and debt ratings, this paper considers the differences in various credit enhancement methods in the equity-like debt agreement and determines the credit rating of the equity-like debt in PPP projects. Some optimization methods are also proposed to derive the probability of default, so as to determine the price of the credit risk mitigation instrument of CDS which is based on the equity-like debt.

scholarly journals Developments in Risk Management in Islamic Finance: A Review

2019 ◽  
Vol 12 (1) ◽  
pp. 37 ◽  
Author(s):  
Naseem Al Rahahleh ◽  
M. Ishaq Bhatti ◽  
Faridah Najuna Misman
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Negative Impact ◽  
Risk Mitigation ◽  
Risk Level ◽  
Islamic Banks ◽  
Bank Capital ◽  
Weak Support ◽  
Governance Practices ◽  
Contract Structure

The purpose of this study is to review recent developments pertaining to risk management in Islamic banking and finance literature. The study explores the fundamental features of risks associated with Islamic banks (IBs) as compared to those associated with conventional banks (CBs) in order to determine the extent to which IBs engage in effective risk mitigation. The study includes a consideration of the major studies in which the fundamental features of Islamic banks and finance (IBF) and the main characteristics of risk management in IBs are analyzed in comparison with those of CBs. Specifically, these two kinds of banks are compared in relation to the types of risks faced, the characteristics of those risks, and the nature and extent of exposure to those risks. A tabular methodology approach is used in concert with a comparative literature review approach for the analysis. The results show that there is weak support for Shariah-based product development due to the lack of risk mitigation expertise in IBs. The conclusion presented is that in comparison with CBs, IBs are more risk-sensitive due to the nature of their products, contract structure, legal costing, governance practices, and liquidity infrastructure. Furthermore, the determinants of the credit risk of Islamic banks in Malaysia (MIBs) are examined. Overall, bank capital and financing expansion have a significant negative impact on the credit risk level of IBs in Malaysia.

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