This paper reviews the quantitative methods developed at selected authorities for stress testing credit risk, focusing in particular on the methods used to link macroeconomic drivers of stress with bank-specific measures of credit risk (macro stress test). Authorities with a mandate for financial stability are particularly interested in quantifying the macro-to-micro linkages and have developed...

One of the explanations for global imbalances is the self-financing behavior of credit-constrained firms in rapidly growing emerging markets. We use an extensive firm-level data set from several Asian countries during 2002–2011, and test the micro foundation of this theory by estimating the effect of an exogenous change in credit constraints, resulting from financial reforms, on firms’ saving b...

We construct a new credit spread index, employing an extensive micro-level data set of secondary market prices of outstanding senior unsecured bonds over the 1973– 2009 period. Compared with the standard default-risk indicators such as the Baa-Aaa corporate bond spread and the paper-bill spread, our credit spread index is a robust predictor of future economic activity across a variety of econom...

Using firm level data from eight Sub-Saharan Africa countries we examine credit constraint differentials between male and female manufacturing entrepreneurs. Enterprises owned by female entrepreneurs are less likely to be credit constrained compared to their male counterparts. The magnitude of this credit constraint gap varies with constraint and ownership definitions but the direction of the g...

Access to external finance, such as bank loans or trade credit, is a key determinant of a firm’s ability to develop, operate, and expand. Economic researchers have studied how various macroeconomic and microeconomic factors influence such access; for example, it has been shown to depend on the macroeconomic environment, since economic downturns tend to limit firms’ ability to borrow and banks’ ...

Introduction 1. The long-run historical record 2. International perspective: the role of growth and fiscal policy 3. Other reasons for the decline in saving 3.1 Credit and insurance markets 3.2 Social security 3.3 Demographic factors 4. Do micro data help us to understand the decline in saving?

In Gambia, women groups are the core of developmental activities. The role of women in micro financing for poverty alleviation has long been recognized as vital approach to household welfare. Microfinance generally refers to the provision of financial services (e.g. savings, credit, insurance) to the poor especially women who normally do not have easy access to formal financial institutions. In...

Research aims: The purpose of this study was to determine the credit distribution level used as working capital assistance for Micro, Small, and Medium Enterprises (MSMEs) during COVID-19 pandemic.Design/Methodology/Approach: This a sample 8 cities/regencies in East Java. Meanwhile, recipients were population areas. research's analysis model panel data regression (generalized least square) by c...

Microcredit has spread rapidly since its beginning in the late 1970s, but whether and how much it helps the poor is the subject of intense debate. As the history suggests rural credit, poverty alleviation, and micro finance are inextricably interwoven. Any effort to understand one without the reference to other can give fragmented results. The Non-Governmental Organisations (NGOs) are regarded ...