 Posted: Tue 22:34, 18 Jan 2011 Post subject: Financial institutions, national risk assessment m |
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| Financial institutions, national risk assessment model review
Key variables of non-systemic risk. The financial institutions pay more attention to the systematic risk, because the non-systematic risk can be by holding a series of large loans to less developed countries to diversify. LS, Goodman found that in l970 ~ 1983 year period, all countries of the debt income ratio and the El system variance has a high risk, and the knock-on effects between countries. Caused by high debt ratios may be due to systemic risk in the developed countries, this rate of growth of nominal and real interest rate sensitivity, causing a high variance of El revenues as a possible cause of systematic risk in commodity prices and world commodity demand trend reflects the economic situation in developed countries,moncler sito ufficiale, such as depression and prosperity of the situation. In contrast,timberland sale, money supply growth and rate into the El system has a low risk of solid cable, mainly due to the less developed countries to control money supply and domestic use of reserves is relatively free choice of the variables. In this way, financial institutions can focus on relatively few variables in the analysis step. (5) motivating factor. Country risk analysis models are often a number of variables to identify those variables is based on re-arrangement of both lenders and borrowers incentives based on the relatively loose. The following issues are rarely involved (1) of the less developed countries,true religion, seeking to re-arrange in this way the incentives or benefits? (2) financial institutions,oakley sunglasses, guarantees, or re-arrange the shock Mai What are the benefits? that less developed countries 2�� demand for re-arrangements and financial institutions to re-arrange the supply determined? Presumably, only when the benefits outweigh the costs of both sides. Rescheduled to take place. All of these economic interests related to the decision of the re-arrangement of the demand and supply. However, this simple statistical model of how to properly describe a complex set of incentives is not clear. (6) stability. The final statistical model country risk problem is its stability. A key variable in the past may be able to properly explain the re-arranged this way. This does not mean it is a good foreseeable future. And the new variables and incentives affect the decision to reschedule, the weight of key variables are also changing at any time. This suggests that financial institutions must combine all the variables are continuously updated information on country risk, statistical models, to ensure the best predictive ability. Fourth, the conclusion of the above risk assessment index system for countries and financial institutions from their own perspective of national risk assessment model of the internal model and external review, that the national risk assessment model exists in the application of the six technical issues. Illustrates the risks of financial institutions in the assessment of a country to apply this model must be combined with variable information at the time,p90x calendar, constantly updating the model amendment so that the country's risk assessment more objective, more accurate, which leads to better prediction results. |
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