A major credit shock can induce large intra-day variation margin payments between counterparties in derivatives markets, which may force some participants to default on their payments. These payment shortfalls become amplified as they cascade through the network of exposures. Using detailed DTCC data we model the full network of exposures, the shock-induced payments, the initial margin collecte...

Traditionally, the literature on financial intermediation and credit channels, especially credit crunches, emphasized the relation between banks and entrepreneurs requiring credit, neglecting the funding of banks. With this paper, we want to be much more precise in this respect and study the impact of funding on credit. Indeed, regulation that has become world wide with the Basle Accord puts li...

We use recent farm household survey data from 5 Central European countries to explore the extent to which ill-functioning land and credit markets may present an obstacle to rural development. The first finding is that improved access to credit can, indeed, make a contribution to a more dynamic rural sector. A considerable share of rural households express their desire to expand agricultural cul...

8 We investigate how different designs for a carbon offset mechanism like the Kyoto Protocol’s Clean Development Mechanism (CDM) affect the success of self-enforcing climate treaties. In a game-theoretic numerical model of coalition formation it is shown that effects of emission trading with non-signatories are generally negative if strategic behaviour and free-rider incentives are explicitly c...

The financial consequences of compulsive buying are obvious given the large amount of debt reported by compulsive buyers in many studies. Credit cards allow consumers to borrow money very easily in order to satisfy their desire to purchase. In two web-based experiments, we found that compulsive shoppers often overspent and were rarely influenced by price. Their overspending was partially mediat...

The banking sector at present is facing many issues; one among them credit risk. Credit risk termed as an estimate or forecast of the default a borrower failing to recover his interest amount borrowed amount. Currently, banker lender recovering and principal amount, increasing their recovery costs. study makes attempt know awareness customers towards private banks. research objective analyze si...

Microlending, where a bank lends to small group of people without credit histories, began with the Grameen Bank in Bangladesh, and is widely seen as creation Muhammad Yunus, who received Nobel Peace Prize recognition his largely successful efforts. Since that time modeling microlending has fair amount academic attention. One issues not yet addressed full detail, however, issue size group. Some ...

Micro Insurance in India is beginning from the financial institutions’ activities i.e., they hedge their own risks while lending to poor under requirements of direct lending. In India, guaranteed through poverty alleviation programs by Government. These are built into credit package as compulsory elements development unorganized sector. Both life and General insurance companies have issued vari...

www.philadelphiafed.org R eports in the popular press and policymakers’ concerns about student loans have greatly intensified in recent years because of rising student loan balances and defaults. Even greater cause for concern arose as student loans outstanding passed credit card debt to become the single largest nonmortgage household debt in 2012. Worries about the risk of massive default have...

Article history: Received 5 October 2013 Received in revised form 25 March 2015 Accepted 7 April 2015 Available online 14 April 2015 In this paper, we show that in the proposedmodels for economic growth, thefinancial systemvariables are generally nonparametric. We, thus, use a nonparametric panel data model to estimate the financial system–economic growth relationship. Our results suggest that ...