When should regulators close a financially ailing bank? FDIC practice in the US has moved
in the direction of early closure. In contrast, banking regulators in Japan continue to follow a …

… CONCLUSION In this paper, we summarise some of the results of Ediz, Michael, and
Perraudin (1998) on the impact of bank capital requirements on the capital ratio choices of UK …

This introduction places in context the papers on credit risk modelling contained in the
special issue. We explain why credit risk modelling has become such a focus of interest for …

This paper analyzes influences on the credit standing of Multilateral Development Banks (MDBs),
specifically the quality, diversification and single name concentration of their portfolios, …

When firms experience financial distress, equity holders may act strategically, forcing
concessions from debtholders and paying less than the originally‐contracted interest payments. …

Recent research by Elton et al (2001) argues that investment-quality defaultable debt spreads
reflect three factors: expected losses, risk premiums and taxes. In this paper, we sort bond …

This paper introduces incomplete information and preemption into an equilibrium model of
firms facing real investment decisions. The optimal investment strategy may lie anywhere …

We study the extent to which crashes in emerging market currencies are predictable using
simple logit models based on lagged macroeconomic and financial data. To evaluate our …

The distribution of ratings changes plays a crucial role in many credit risk models. As is well-known,
these distributions vary across time and different issuer types. Ignoring such …

The paper reviews the empirical evidence on the impact of the 1988 Basle Accord. It focuses
on whether the adoption of fixed minimum capital requirements led some banks to maintain …