The main purpose of this study is to understand how Portuguese restaurants’ solvency was affected by the COVID-19 pandemic, considering factors that influence it. Financial information collected for years 2019 and 2020 in SABI database elaborate a quantitative methodology; descriptive analysis used Pearson’s correlation coefficient, Paired t-test, one-way ANOVA test, multiple linear regression ...

We present a new framework combining current methods of bank solvency stress tests with model fire sales. apply the to conducted by European Banking Authority. Fire sales are described an equilibrium balancing leverage improvements and drops in security prices. Additional losses caused significant go beyond trivial fact that we will get bigger losses. Ignoring potential effects may lead false s...

This paper aims to enhance in-depth analysis of the impact various risks: credit risk, interest rate market risk and liquidity as well volume activity on capital adequacy ratio Lebanese banks. It is confined 31 banks out 63 operating in Lebanon, non-probability sample, during period 2012-2018 using regression analysis. The findings indicate that all independent variables have a negative banks’ ...

While statistical and artificial intelligence methods such as Artificial Neural Networks (ANN) have been used successfully to classify organizations in terms of solvency or insolvency, they are limited in degree of generalization either by requiring linearly separable variables, lack of knowledge of how a conclusion is reached, or lack of a consistent approach for dealing with local optimal sol...

We construct a model with a large number of agents who have constant relative risk aversion (CRRA) preferences and face potentially tight solvency constraints. We show that the absence of insurance markets for idiosyncratic labor income risk has no effect on the premium for aggregate risk if the distribution of idiosyncratic risk is independent of aggregate shocks. In the equilibrium, which fea...