The last years have seen the development of many credit scoring models for assessing the creditworthiness of loan applicants. Traditional credit scoring methodology has involved the use of statistical and mathematical programming techniques such as discriminant analysis, linear and logistic regression, linear and quadratic programming, or decision trees. However, the importance of credit grant ...

Banks are important to national, and even global, economic stability. Banking panics that follow bank insolvency or bankruptcy, especially of large banks, can severely jeopardize economic stability. Therefore, issuers and investors urgently need a credit rating indicator to help identify the financial status and operational competence of banks. A credit rating provides financial entities with a...

the letter of credit as a method of smoothing international payment is a conditional security and obligation to pay the customer bank (issuing bank) to seller (applicant). for this purpose, the letters of credit may be considered as the most usual method of payment of goods price in international trade. the classic form of letters of credit is the commercial letters of credit whose financial ob...

In this paper, we extend the debate concerning Credit Default Swap valuation to include time varying correlation and co-variances. Traditional multi-variate techniques treat the correlations between covariates as constant over time; however, this view is not supported by the data. Secondly, since financial data does not follow a normal distribution because of its heavy tails, modeling the data ...

The national savings and credit to private sector played important role in economic growth and development of Pakistan. The impact of savings and credit to private sector on economic growth in Pakistan was evaluated in the present study. The time series data for the period of 1973 to 2007 was used to evaluate the impact of savings and credit on economic growth. The data was obtained from variou...

We review different methods for simulating credit migrations in a nonparametric and discrete or continuous-time Markov chain framework. We suggest the application of a factor model approach in combination with the use of copulas for the joint dynamics of credit rating changes. While there are several applications of copulas in credit risk for modeling joint defaults, it lacks of the same intere...

and Applied Analysis 3 Table 1: Comparison between the papers discussing integrated inventory model with a trade credit. Author s Demand rate Production rate Production/purchase cost Freight rate Wholesale price Abad and Jaggi 39 Retail price sensitive Constant Constant — Constant Jaber and Osman 40 Constant — — — Constant Yang and Wee 41 Retail price sensitive — Constant — Constant Sheen and T...

This paper explores trading strategies to identify possible imbalances that may have been existed in the credit markets, during the period 2001–2006, when pairing CDS and CMCDS on the same name. To this end, a large database of single-name CDS premia is used to produce the corresponding CMCDS prices, derived by implementing common market models. It appears that, in general, it would have been m...

T   he completed MCI includes three main channels of interest rate, exchange rate and credit rate. In developing countries such as Iran, this indicator, which contains a credit channel, could be better used to illustrate the country’s monetary condition. This study has been done to calculate this index for the period of 1978–2012. For this purpose, the function of the total economy demand ...

1 Background Credit cards have been widely used in the USA. The industry has matured so much that most households hold many credit cards and most consumers use credit cards as means of payment. They usually maintain their records on credit cards. In the USA, a total amount of credit card balances is about $700 billion. Because of the wide usage of credit cards, the term of cards is becoming a m...