The aim of this article is to investigate the dynamic correlation between the Global Economic Policy Uncertainty index (GEPU) and Non-Performing Loans (NPL) in Iran. The relationship between economic uncertainty and banking performance indices is significant because of the systemic importance of banks in every economy. We evaluated this relationship in this developing country, especially under ...

The model presented addresses issues that have recently been discussed under the term ‘financial contagion’. I analyze a situation where the fractions of repaid loans (i.e., the returns on lending) in two domains (e.g., industries or countries) are driven by two independent factors, one specific to the domain and the other a general factor. The fact that these different factors are unobserved g...

The authors acknowledge financial support from the Center for Responsible Lending (CRL). However, the views expressed here are those of the authors and do not necessarily represent the views of CRL. The authors would also like to thank Karen Pence for providing us with her database on state foreclosure laws. 1 ABSTRACT There are growing concerns about the way predatory mortgages erode housing e...

One of the roots of the recent global financial crisis has been seen in the design of subprime mortgage contract leading to high sensitivity of such type of loans to house price changes. The market of subprime loans, especially in the last years preceding the crisis, has been highly financed by securitization. The paper investigates how borrowers with subprime characteristics influence the tran...

This paper explores the determinants of people’s decisions to take 401(k) loans. We argue that 401(k) plans do not simply represent retirement saving, but they also provide a means of saving for precautionary purposes. We model factors that rationally would induce people to borrow from their pension plans, and we explain why people do not often use 401(k) loans to replace their more expensive c...

Microcredit loans have transformed the lives of impoverished people in many countries by allowing them to start businesses. But increasingly microcredit banks are realizing that providing some kind of health coverage in tandem with the loans is essential if they want to fulfil their mission to improve lives.

Abstract This chapter evaluates the research-based interventions from a practice perspective. The value that chosen and applied measures add to communication of financial analysts is discussed for levels organisation, domain, society at large.

This paper analyzes the linkages between credit supply conditions and bank lending. Building on the recent work of Gilchrist and Zakraǰsek [2011], we use the excess bond premium—a component of corporate credit spreads designed to measure shifts in the risk attitudes of financial intermediaries—to empirically identify credit supply shocks. Our results indicate that shocks to the excess bond prem...

This research investigated the potential for improving Peer-to-Peer (P2P) credit scoring by using “private information” about communications and travels of borrowers. We found that P2P borrowers’ ego networks exhibit scale-free behavior driven by underlying preferential attachment mechanisms that connect borrowers in a fashion that can be used to predict loan profitability. The projection of th...