With an international dataset of credit default spreads as a credit risk measure, we propose a novel empirical framework to identify the structure of credit risk network across major financial institutions around the recent 2007-2008 global credit crisis. The findings directly shed light on credit risk transmission in a financial network and help find systemically important financial institutio...

Credit is a widely used tool to finance personal and corporate projects. The risk of default has motivated lenders to use a credit scoring system, which helps them make more efficient decisions about whom to extend credit. Credit scores serve as a financial user model, and have been traditionally computed from the user’s past financial history. As a result, people without any prior financial hi...

:Creditworthiness is acknowledged worldwide as focal point of debt processing. Credit Rate, an output credit-rating process, reflects such creditworthiness. We reviewed literature on elements credit rating, viz. agencies (CRAs) and model. Rating independent evaluation CRAs perform this to support financial institutions in processing debts. Literature added domain from January 2001 November 2020...

Since 1960s and the following financial crisis in developing countries, a wide research has been conducted on financial capability of states in repayment of their debts. Though having been considered at various importance levels during the past decades, this subject seems to have today become a controversial issue in economic discourses. In principle, three indices are applied to determine the ...

A widespread opinion before the credit crisis of 2007/8 was that securitisation enhances financial stability by dispersing credit risk. After the credit crisis, securitisation was blamed for allowing the hot potato of bad loans to be passed to unsuspecting investors. Both views miss the endogeneity of credit supply. Securitisation enables credit expansion through higher leverage of the financia...

Assets, debts and other financial products issued by emerging countries are usually considered more speculative than those issued by developed economies. Therefore, relying on traditional rating agencies to invest in these countries is problematic as the information used to assess the economic and market condition in these economies is quickly outdated. Consequently, both the investment opportu...

Guaranteed loan is a common way for an enterprise to raise money from banks without any collateral in China. It is welcome for both enterprises and banks when the economy is up. However, the situation becomes tough as long as the economy is down. The financial risk caused by guaranteed loans not only makes the enterprise which takes the loan in trouble but also spreads over the intertwined netw...