Industry practices in credit risk modeling and internal capital allocations: implications for a models-based regulatory capital standard

This paper was presented at the conference "Financial services at the crossroads: capital regulation in the twenty-first century" as part of session 2, "Credit risk modeling." The conference, held at the Federal Reserve Bank of New York on February 26-27, 1998, was designed to encourage a consensus between the public and private sectors on an agenda for capital regulation in the new century.Risk ; Econometric models ; Bank capital

Three Dimensional Software Modelling

Traditionally, diagrams used in software systems modelling have been two dimensional (2D). This is probably because graphical notations, such as those used in object-oriented and structured systems modelling, draw upon the topological graph metaphor, which, at its basic form, receives little benefit from three dimensional (3D) rendering. This paper presents a series of 3D graphical notations demonstrating effective use of the third dimension in modelling. This is done by e.g., connecting several graphs together, or in using the Z co-ordinate to show special kinds of edges. Each notation combines several familiar 2D diagrams, which can be reproduced from 2D projections of the 3D model. 3D models are useful even in the absence of a powerful graphical workstation: even 2D stereoscopic projections can expose more information than a plain planar diagram

Illinois State Finance Corporation

Our project named Illinois State Finance corporation deals with the different types of loans for Personal loan, car loan, crop loan, Home loan. Generally we search for companies who give loans with low interest. Our company can offer you different types of loans in single place. Users can search the details from user portal where you will aware of interest rate and how many installments. It displays the information such as cost , installments, interest, validation and estimation quote

Dollarization: A Dead End

When economies "dollarize," their exchange rate and monetary policy, both considered to be sources of instability, are simultaneously discarded. Often, dollarization becomes an attractive option for developing countries that have experienced successive failures of exchange rate and monetary management. This paper makes use of a theoretical model that shows, contrary to the commonly accepted view, that a dollarized economy would experience financial instability in the event of external shocks should it attempt to operate discretionary fiscal policies. Shocks not simultaneously contained by adjustments to spending would lead to ever-increasing fiscal and current account deficits because public sector borrowing requirements can only be financed by selling bonds in the open market at constantly rising rates of interest. Hence, such a path cannot be an option. Alternatively, if fiscal spending were curbed at par with the shock, external and current account balances would converge to equilibrium, but trigger a recession and increased unemployment. Since this, too, is unacceptable, dollarization turns out to be a "dead end."Dollarization, exchange rate, monetary policy

"Dollarization: A Dead End"

When economies "dollarize," their exchange rate and monetary policy, both considered to be sources of instability, are simultaneously discarded. Often, dollarization becomes an attractive option for developing countries that have experienced successive failures of exchange rate and monetary management. This paper makes use of a theoretical model that shows, contrary to the commonly accepted view, that a dollarized economy would experience financial instability in the event of external shocks should it attempt to operate discretionary fiscal policies. Shocks not simultaneously contained by adjustments to spending would lead to ever-increasing fiscal and current account deficits because public sector borrowing requirements can only be financed by selling bonds in the open market at constantly rising rates of interest. Hence, such a path cannot be an option. Alternatively, if fiscal spending were curbed at par with the shock, external and current account balances would converge to equilibrium, but trigger a recession and increased unemployment. Since this, too, is unacceptable, dollarization turns out to be a "dead end."

Scalable Attack Analysis of Business Process based on Decision Mining Classification

Banking crime is one of the widespread phenomena in 2016 are closely associated with the used of computer-based technology and internet networks that constantly evolving. One of them is the burglary of customer accounts through the internet banking facility. To overcome this, we need a method of how to detect a conspiracy of bank burglary case of customer accounts. The way to scalable is by get a mining decision to get a decision tree and from the decision tree to get a decision attribute value to determine the level of anomalies. Then of all the attributes decision point is calculated rate of fraud. The rate of fraud is classified through level of security of attack by the attacker then entropy gain is used to calculate the relative effort between the level of attacks in the decision tree. The results show that the method could classify three levels of attacks and the corresponding entropy gains. The paper uses decision trees algorithm, alpha++ and dotted chart analysis to analyze an attack that can be scalable. The results of the analysis show that the accuracy achieved by 0.87%

Function and application of the new macroprudential tools available to the Banco de España

Following the global financial crisis, banking regulation incorporated macroprudential policy into the authorities’ toolkit with the aim of mitigating so-called “systemic risk”. This is namely the risk of financial instability becoming so widespread that it hampers the functioning of the financial system, to such an extent that economic growth and citizens’ well-being are adversely affected. One of the distinctive characteristics of this risk is that it is multi-dimensional; accordingly, a broad range of specific tools is needed to be able to tackle each of these dimensions. Up to a year ago Spanish regulations, deriving from European regulations, basically provided for macroprudential tools that could bear on banks’ solvency requirements. Since then it has added other tools, some of which are common to other jurisdictions, that allow action to be taken on specific credit portfolios or on specific characteristics of the loans granted by banks. This article sets out these new tools, discussing their main properties and their potential scope for operating in practice. It also reviews some of the challenges that future revisions or future extensions of the macroprudential toolbox may pose

Visualizing Business Process Deviance With Timeline Diagrams

Lõputöös püstitatakse kaks peamist küsimust mõiste "hälvete kaevandamine" kohta ja tehakse ettepanek uue meetodi jaoks, mis näitab kahe sündmuse logide erinevusi ajalise dünaamika mõttes, et täita hälvete kaevandamist. Hälvete kaevandamise eesmärk on täpsustada probleemide päritolu ja kõrvalekaldeid. Kogu sellega seotud töö uurimisel on täheldatud, et enamus olemasolevatest meetoditest keskenduvad protsessi põhistruktuurile, mis on ülesannete täitmise järjekord. Uus tehnika näitab tavapäraste ja hälbivate jälgede tegevuste suhtelisi kestusi, st ajalist dünaamikat, joonistades variantide ajakava. Lisaks pakutakse välja tehnika, mis näitab diagrammide kohandamiseks erinevaid seadeid, nagu tulemuslikkuse mõõdik ja protsessi üksikasjalikkus. Lõpuks onvälja arendatud kontseptsioonivahend, mis järgib välja pakutud lähenemisviisi ja on veebis saadaval.The thesis poses two main questions regarding to the notion of “deviance mining” andproposes a new technique to visualise the differences of two event logs in terms oftemporal dynamics in order to perform deviance mining. The objective of deviancemining is to pinpoint the origin of the problems and the deviance. Throughout theresearch of the related work it’s observed that most of the existing methods focus on themain structure of the process which is the order of the tasks being executed. The newtechnique brings out the relative durations i.e temporal dynamics of the activities in thenormal and deviant traces by drawing a timeline diagram of the variants. Additionally theproposed technique puts forward set of different settings such as the performancemeasure and the granularity level of the process to customize the diagram. Lastly, aproof-of-concept tool abiding by the proposed approach is implemented which is servedon the web