The depth and duration of the 2007–09 recession serves as a powerful reminder of the real consequences of financial shocks. Although channels through which disruptions in financial markets can affect economic activity are relatively well understood from a theoretical perspective, assessing their quantitative implications for the real economy remains a considerable challenge. This paper examines...

This paper focuses on sovereign credit risk meaning a hot topic related to the current Eurozone crisis. In the light of the recent financial crisis, market perception of the creditworthiness of individual sovereigns has changed significantly. Before the outbreak of the financial crisis, market participants did not differentiate between credit risk born by individual states despite different lev...

The champions of financial inclusion regret women's lack access to credit, while critics financialization, by contrast, claim that women have become overly indebted. But little is actually known about debt/credit in quantitative terms, mostly due a data. This descriptive paper uses first-hand survey data from southern India disaggregated sex order analyze the gender debt and its interplay with ...

Credit risk is the most important of banks’ financial risks. As far as the largest Swedish banking groups are concerned, 60 per cent of their assets consist in lending to the public. Consequently, measures for mitigating credit risk are of significant importance for banks in their risk management. During the financial crisis, credit risk in the financial system has become of focal importance fo...

In this paper we provide a micro model of loans which the lender is a monopolistic bank and the borrower is a competitive consumer with consumption habits who may default on part of his debt. In this setting, we prove that the loan demand curve is kinked and therefore it is possible to find interest rate rigidity in equilibrium as well as asymmetric response of loans to interest rate variations...

Credit scoring model have been developed by banks and researchers to improve the process of assessing credit worthiness during the credit evaluation process. The objective of credit scoring models is to assign credit risk to either a ‘‘good risk’’ group that is likely to repay financial obligation or a ‘‘bad risk’’ group who has high possibility of defaulting on the financial obligation. Constr...

Many orthopedic residents accrue considerable debt by residency graduation. These debts for graduating medical students continue to increase due to the yearly increase of medical school tuition. The purpose of this study was to examine the causes of financial debt, as well the effects of debt on orthopedic residents.Orthopedic residents from postgraduate years 1 to 5 (N=27) completed an anonymo...

The study was designed to analyze credit receipt and enterprise performance by small scale agro based enterprises in the Niger Delta region of Nigeria. A multistage sampling technique was adopted in selecting 264 agro based enterprises and 96 agro based enterprises that accessed informal and formal credit respectively. The Heckman model was used to examine the factors affecting amount of inform...

If given the opportunity to reduce your debt, albeit at some financial risk, would you take it? Interviews and observations in two debt settlement firms show that debt settlement clients tend not to calculate financial risks in deciding which debts to try to settle. Rather, they treat their relationship with their creditor as a reciprocal and ongoing one. If the service provided by their credit...