Abstract This study investigates the need for credit supervision as conducted by on-site banking supervisors. It builds on a real bank examination to compare performance of hypothetical self-supervision approach, in which banks themselves assess their loan portfolios without external intervention, with approach Central Bank Brazil. The experiment develops two machine learning classification mod...

Food irradiation consists of a physical process that subjects food to doses ionizing radiation, which are high enough energy eliminate or neutralize harmful microbial contaminants without changing the taste texture and leaving residues. With this we can prevent diseases transmitted by food, such as Salmonella Escherichia coli, prolong shelf life foods, control pests harm fruits delaying germina...

Though overall bank performance from July 2007 to December 2008 was the worst since at least the Great Depression, there is significant variation in the cross-section of stock returns of large banks across the world during that period. We use this variation to evaluate the importance of factors that have been discussed as having contributed to the poor performance of banks during the credit cri...

Comprehensive and thorough supervision of all banking institutions under a Central Bank’s regulatory control has become necessary as recent banking crises show. Promptly identifying bank distress and contagion issues is of great importance to the regulators. This paper proposes a methodology that can be used additionally to the standard methods of bank supervision or the new ones proposed to be...

We consider a moral hazard economy with the potential for collusion between bankers and borrowers to study how incentives for risk taking are affected by the quality of supervision. We show that a low cost of capital or low return on investment may generate excessive risk taking. Because of a pecuniary externality, the market equilibrium is ineffi cient, therefore bank capital ratio should be r...