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Through the secondary data collected from 2005 to 2019, we used the BK approach in which, Pooled OLS, FEM, REM, and GMM methods and Sobel’s test are used to check the relationship between bank credit risk and bank stability of Vietnam commercial bank system. The results show that bank credit risk, profitability, and bank stability have a direct relationship and have a partial indirect relationship. The size and profitability of the previous period have a positively correlated with bank profitability, nonperforming loan, loan loss provision, non-interest income, efficiency, and bank credit growth have a negative impact on bank profitability, bank profitability has no impact on bank credit risk. Profitability and bank stability of the previous period have an impact on current bank stability. Nonperforming loans, non-interest income hurt bank stability, loan loss provision and bank stability of the previous period have a positively correlated with current bank stability. Finally, banks need to build and perfect the risk management system to comply with Basel II standards. Identifying and forecasting credit risks are one of the areas that need to be improved and carried out regularly and continuously.

ResumenEl objetivo de este trabajo es conocer las diferencias de género al valorar factores no financieros y financieros por los ejecutivos de crédito de instituciones financieras a la hora de autorizar un préstamo a la PYME mexicana. Mediante un análisis empírico se ha estudiado a los ejecutivos de crédito de 25 intermediarios financieros. Los resultados señalan que son las mujeres las que valoran como más importantes los factores no financieros de los prestatarios, frente a sus compañeros.AbstractThe aim of this study is to know the gender differences in assessing financial and non-financial factors by risk managers of financial institutions when approving a bank loan to Mexican SMEs. Through an empirical study the loan officers of 25 financial intermediaries have been analaised. The results show that it is women who value as more important the non-financial factors in borrowers than men.

Considering correlations between entries of credit portfolio is an important objective when estimating credit risk. This paper aims to construct a multivariate model of credit losses examining a portfolio composed of loans to a set of kinds of business. The paper also introduces the method of credit risk calculation via copulas, gamma distribution and kernel estimates. Empirical application of the introduced method is realized by using a historical loss data provided by one of the Moscow credit banks.

The empirical literature on institutions and development has been challenged on grounds of reverse causality, measurement error in institutional indicators, and heterogeneity. This paper uses firm-level data across countries to confront these challenges. Instead of analyzing ultimate outcomes, such as income levels where institutional quality is likely endogenous, the focus is on firm-level external finance. Moreover, institutions are “unbundled” to explore how various types of institutions affect external finance differently. The paper documents that micro firms have significantly less access to external finance than small and medium firms. General financial development and contracting institutions that facilitate transactions between private parties exert little effect, on average, on firms’ access to external finance. In contrast, property rights institutions that constrain political and economic elites exhibit stronger positive association with access to external finance. The analysis finds evidence of attenuation bias associated with error in measuring institutions. For leveling the playing field between elite and non-elite firms (as proxied by firm size) in their access to external finance, property rights institutions also figure more prominently—with an important exception for the information environment, a component of contracting institutions. The results indicate that a specific channel through which development is affected more by property rights institutions rather than contracting institutions is external financing for firms.

Jamaica has experienced 30 years of low economic growth and high fiscal deficits, with a significant impact on the development of the financial sector. As part of the overall growth and competitiveness reform agenda, the authorities have embarked on ambitious financial sector legislation reforms to address weaknesses. Lack of access to credit and equity constrain Micro, Small and Medium Sized Enterprise (MSME) operations and growth, and ultimately their contribution to the economy. High interest rates and low penetration of credit to households and MSMEs can be explained by high credit risk as a result of high information asymmetries in the market, as well as limited competition in the banking sector. The authorities should complete the establishment of a regulatory and supervisory framework for deposit-taking institutions proportionate to the risks and the activities they undertake. The impact of public policies has been limited and programs on housing, MSME finance, and agriculture finance would be welcomed to address market gaps, in support of financial inclusion. The financial inclusion agenda also requires a comprehensive strategy on consumer protection regulation and supervision.

This paper examines the effect of finance on long-term economic growth using Bayesian model averaging to address model uncertainty in cross-country growth regressions. The literature largely focuses on financial indicators that assess the financial depth of banks and stock markets. These indicators are examined jointly with newly developed indicators that assess the stability and efficiency of financial markets. Once the finance-growth regressions are subjected to model uncertainty,the results suggest that commonly used indicators of financial development are not robustly related to long-term growth. However, the findings from the global sample indicate that one newly developed indicator -- the efficiency of financial intermediaries -- is robustly related to long-term growth.

East Java is the second largest contributor to Indonesia's economy with a growth rate similar to national level and other major provinces in Java. Nevertheless, for a province that is expected to be a major economic center in the country, there has been very little change in the region's economic structure in the past 10 years. Since 1995, the share of industry and agriculture in the economy is almost unchanged. Furthermore, the growth in both of these two sectors has been low, despite the fact that industry was once the main driver of the East Java economy. This report analyzing the economic conditions of East Java shows that the province offer many economic advantages for investors, such as its geographical location, adequate credit facilities, an abundant and competitively priced workforce, conducive security conditions, and an overall robust macroeconomic condition. The report also finds a number of constraints that, if prioritized and effectively addressed, could boost East java's growth rate to higher level. The main binding constraints to growth in East Java are infrastructure, particularly related to business operations, and the business climate.

Arguing that a relatively high cost of deposit insurance indicates that a bank takes excessive risks, this article estimates the cost of deposit insurance for a large sample of banks in 14 economies to assess the relationship between the risk-taking behavior of banks and their corporate governance structure. The results suggest that banks with concentrated ownership tend to take the greatest risks, and those with dispersed ownership engage in a relatively low level of risk taking. Moreover, as a proxy for bank risk, the cost of deposit insurance has some power in predicting bank distress