Many financial institutions are actively developing new electronic banking products for their retail customers. These efforts are can succeed only if their managers focus the promotion of the new services toward those customers who are most likely to find them attractive. The analysis of a 6-branch financial institution presented in this study suggests that institutions are vulnerable to loss o...

We develop a theoretical model examining the financial stability policy of a central bank serving as both the lender of last resort and the regulator of the financial system. Our model accommodates the possibility of financial contagion through interbank market linkages, and adverse feedback from the financial system to the real economy. We identify the volume of activity in the interbank money...

The savings/investment process in capitalist economies is organized around financial intermediation, making them a central institution of economic growth. Financial intermediaries are firms that borrow from consumer/savers and lend to companies that need resources for investment. In contrast, in capital markets investors contract directly with firms, creating marketable securities. The prices o...

Few studies have examined whether financial aid affects college retention. This paper models the decision to enroll and re-enroll in college, which yields a bivariate probit model that is estimated using detailed individual data from a large public university. The analysis uses the unique detail of institution-specific data to examine the effect of financial aid on the re-enrollment decision, a...

Discussions of financial systems tend to identify banks (financial intermediaries) and markets as the major institutions determining the workings of the financial system as it guides the flow of funds from the household sector to the production sector of the economy. The contrast of "bankdominated" and "market-oriented" financial systems has for a long time occupied centre stage of the literatu...

The heavy tailed distributions have mostly been used for modeling the financial data. The kappa distribution has higher peak and heavier tail than the normal distribution. In this paper, we consider the estimation of the three unknown parameters of a Kappa distribution for evaluating the value at risk measure. The value at risk (VaR) as a quantile of a distribution is one of the import...

Many business elements are used to develop credit scorecards. Reject inference, related to the issue of sample bias, is one of the key processes required to build relevant application scorecards and is vital in creating successful scorecards. Reject inference is used to assign a target class (that is, a good or bad designation) to applications that were rejected by the financial institution and...

The aim of this paper is to present a framework to bank valuation based on two generally acceptable valuation models that are not specific to banks: the model of discounted Equity Cash Flow to Equity (ECF) and the model of discounted Residual Income (RI). As emphasized by Koller, Goedhart and Wessels (pp. 663, 2005) [1] in a bestselling book on the valuation of firms, the valuation process of a...

The risk that have been faced by sharia financial institution is not merely about issue but also non-financial. Hence, it considered as an urgency to be able implement the management in order conduct hedging strategy institution, and anticipate ready for further action needed facing some irrelevant situations which are according with expectations objectives of institution. This writing aims ass...

This paper proposes methods for estimation and inference in multivariate, multi-quantile models. The theory can simultaneously accommodate models with multiple random variables, multiple confidence levels, and multiple lags of the associated quantiles. The proposed framework can be conveniently thought of as a vector autoregressive (VAR) extension to quantile models. We estimate a simple versio...