Credit risk management of property investments through multi-criteria indicators

The economic crisis of 2008 has highlighted the ineffectiveness of the banks in their disbursement of mortgages which caused the spread of Non-Performing Loans (NPLs) with underlying real estate. With the methods stated by the Basel III agreements, aimed at improving the capital requirements of banks and determining an adequate regulatory capital, the banks without the skills required have difficulties in applying the rigid weighting coefficients structures. The aim of the work is to identify a synthetic risk index through the participatory process, in order to support the restructuring debt operations to benefit smaller banks and small and medium-sized enterprises (SME), by analyzing the real estate credit risk. The proposed synthetic risk index aims at overcoming the complexity of Basel III methodologies through the implementation of three different multi-criteria techniques. In particular, the integration of objective financial variables with subjective expert judgments into a participatory process is not that common in the reference literature and brings its benefits for reaching more approved and shared results in the debt restructuring operations procedure. Moreover, the main findings derived by the application to a real case study have demonstrated how important it is for the credit manager to have an adequate synthetic index that could lead to the avoidance of risky scenarios where several modalities to repair the credit debt occur

Analysis of financial development and open innovation oriented fintech potential for emerging economies using an integrated decision-making approach of MF-X-DMA and golden cut bipolar q-ROFSs

The purpose of the paper is to identify the factors of financial development that have the greatest impact on open innovation in 7 emerging countries. The analysis was performed featuring the MF-X-DMA method, as well as its further verification for autocorrelation and heteroscedasticity. The time period covers years from 2002 to 2020. The article states that the main indicators to improve financial development should enhance the process of bank lending and equity market development. An important area is the development of competition by providing equal access to information to all market participants in a continuously refining technical infrastructure. Regression analysis with the MF-X-DMA method confirms the statistical significance of this influence. The article fills the knowledge gap into the link between open innovations and the relatively low capitalization of the modern emerging countries’ financial market, low liquidity in small cap stocks at the financial market and concentration of the banking sector, as well as risks arising in the process of globalization. Another analysis has also been conducted by generating a novel fuzzy decision-making model. In the first stage, the determinants of open innovation-based fintech potential are weighted for the emerging economies. For this purpose, M-SWARA methodology is taken into consideration based on bipolar q-ROFSs and golden cut. The second stage of the analysis includes evaluating the emerging economies with the determinants of open innovation-based fintech potential. In this context, emerging seven countries are examined with ELECTRE methodology. It found the most significant factor is the open innovation-based fintech potential

Operational research and artificial intelligence methods in banking

Supplementary materials are available online at https://www.sciencedirect.com/science/article/pii/S037722172200337X?via%3Dihub#sec0031 .Copyright © 2022 The Authors. Banking is a popular topic for empirical and methodological research that applies operational research (OR) and artificial intelligence (AI) methods. This article provides a comprehensive and structured bibliographic survey of OR- and AI-based research devoted to the banking industry over the last decade. The article reviews the main topics of this research, including bank efficiency, risk assessment, bank performance, mergers and acquisitions, banking regulation, customer-related studies, and fintech in the banking industry. The survey results provide comprehensive insights into the contributions of OR and AI methods to banking. Finally, we propose several research directions for future studies that include emerging topics and methods based on the survey results

The impact of bank regulatory changes, bank specific factors, and systematic risk upon the off-balance-sheet activities in selected conventional commercial banks in South Asia

Risk diversification is among the crucial issue’s conventional banks face. The banking system in South Asia -, which is a diversified banking system, compriseding of local and foreign banks , is also engaged in off-balance sheet activities. Therefore, the prime objective of the current study is to investigate the impact of bank-specific factors, bank regulatory changes and systematic risks on the off-balance sheet activities in conventional commercial banks of selected countries in South Asia namely Bangladesh, India, Pakistan and Sri Lanka . Based on the research objectives, the study employeds two estimates, namely, fixed effects (FE) (time and country) and generalized method of momentum GMM (difference). Within the FE static methodology, the researchers estimated structure, comprising both country and time fixed effect in order to further account for financial shocks and other time-related events that affect each of the four countries. The majority of the findings show consistency with the market power theory, which indicates that the banks in South Asia consider the risks arising from the off-balance sheet activities and performance, as key determinants of off-balance sheet activities engagement. Banks in South Asia are also inclined to follow the market regulatory and tax theory, which claims that the increasing regulatory requirements in the form of capital requirement, provides banks with incentives to take excessive risks of off-balance sheet activities. The systematic risks arising from the macroeconomic factors also appear as a significant determinant of the off-balance sheet activities. The findings of the study have several practical implications that can be applied in the context of the bank-specific risks, regulatory pressure from regulatory restructuring and risks from the systemic factors. These implications are of great importance and will help the policymakers and practitioners to understand the issues related to the off balance sheet activities

Combining SOA and BPM Technologies for Cross-System Process Automation

This paper summarizes the results of an industry case study that introduced a cross-system business process automation solution based on a combination of SOA and BPM standard technologies (i.e., BPMN, BPEL, WSDL). Besides discussing major weaknesses of the existing, custom-built, solution and comparing them against experiences with the developed prototype, the paper presents a course of action for transforming the current solution into the proposed solution. This includes a general approach, consisting of four distinct steps, as well as specific action items that are to be performed for every step. The discussion also covers language and tool support and challenges arising from the transformation

Critical success factors of public-private partnerships in the governance of supply and sanitation services in Latin America and the Caribbean

La tesis aborda la identificación y aplicación de los factores críticos de éxito en la gobernanza de los proyectos de abastecimiento y saneamiento con participación del sector privado del tipo asociación o colaboración público-privada en América Latina y el Caribe, considerando distintos puntos de vista de expertos del sector. Se obtiene una lista priorizada de factores críticos de éxito basada en la evaluación de expertos, que permite mejorar la gobernanza del agua y de esta forma predecir el éxito de este tipo de proyectos. Dicha lista se logra mediante métodos como la revisión de la literatura, el análisis de casos, la selección de expertos, aplicación de cuestionarios y entrevistas, y procesamiento mediante análisis factorial de los datos obtenidos. Además, se realiza un aporte a la ciencia mediante la generación, aprendizaje y difusión del conocimiento adquirido, identificando los elementos más importantes a tener en cuenta en la gobernanza del sector.The thesis addresses the identification and application of critical success factors in the governance of water supply and sanitation projects with private sector participation of the public-private partnership type in Latin American and Caribbean, considering different points of view of experts in the sector. A prioritized list of critical success factors based on expert evaluation is obtained to improve water governance and thus predict the success of this type of project. This list is achieved through methods such as literature review, case analysis, selection of experts, application of questionnaires and interviews, and factor analysis processing of the data obtained. In addition, a contribution is made to science through the generation, learning and dissemination of the knowledge acquired, identifying the most important elements to be considered in the governance of the sector

MS FT-2-2 7 Orthogonal polynomials and quadrature: Theory, computation, and applications

Quadrature rules find many applications in science and engineering. Their analysis is a classical area of applied mathematics and continues to attract considerable attention. This seminar brings together speakers with expertise in a large variety of quadrature rules. It is the aim of the seminar to provide an overview of recent developments in the analysis of quadrature rules. The computation of error estimates and novel applications also are described

Generalized averaged Gaussian quadrature and applications

A simple numerical method for constructing the optimal generalized averaged Gaussian quadrature formulas will be presented. These formulas exist in many cases in which real positive GaussKronrod formulas do not exist, and can be used as an adequate alternative in order to estimate the error of a Gaussian rule. We also investigate the conditions under which the optimal averaged Gaussian quadrature formulas and their truncated variants are internal