Does crisis affect credit risk in developing countries? The case of the Jordanian market

At the core of the recent global financial and economic crisis marked by its magnitude, credit risk turned out to be a powerful catalyst. The objective of this paper is mainly to follow up on the evolution of credit risk on the Jordanian market during the recent economic and financial international crisis. Based on the linear discriminant Z-Score model and KMV structural model, we recognize the increase in credit risk during the crisis period. On the whole, the confrontation between models highlights the robust correlation between the accounting results of a company and its market value and therefore indicates the need to consider the macroeconomic context in an open economy for the evaluation of the risk of credit.   JEL codes: E551, G3, C

Does crisis affect credit risk in developing countries?

At the core of the crisis marked by its magnitude, credit risk turned to become a powerful catalyst. The objective of this paper is mainly to follow up the evolution of the credit risk at the Jordanian market during the recent economic and financial international crisis. Based on the linear discriminant model Z-Score and KMV structural model, we recognize the increase in the credit risk during the crisis period. On the whole, the confrontation between models highlights the robust correlation between the accounting results of a company and its market value

The impact of regulation, information and credit risk on banking performance : the case of the jordanian market

Cette thèse a pour objet d’analyser la performance des établissements bancaires jordaniens durant la crise mondiale amorcée en 2007-2008. Sous ce thème, nous abordons les questions de la réglementation du système bancaire, de l’asymétrie d'information et du risque de crédit. Une attention particulière est portée à l’analyse de la réglementation issue des différents accords de Bâle, qui a servi de modèle à la régulation du système bancaire jordanien. En effet, non seulement la philosophie de la réglementation bancaire a évolué depuis le premier accord en 1988, mais de plus il existe des interactions entre les dispositifs réglementaires et les problèmes liés à l’information et à la gestion du risque de crédit. A la suite de l'analyse de ces trois facteurs, nous nous tournons vers leur prise en compte dans l'évaluation de la performance bancaire. Nous concentrons notre étude sur la Jordanie, pays dans lequel la structure du marché bancaire a profondément été bouleversée ces dernières années par l’ouverture du marché aux investisseurs internationaux, par l’évolution des normes prudentielles et par les conséquences économiques de la crise financière internationale. Une estimation quantitative du risque de crédit et de la performance est menée, en ayant recours à des méthodes statistiques et économétriques. Les résultats montrent que la dégradation de la performance des banques jordaniennes à partir de 2008 n’est pas due principalement à la réglementation stricte imposée par la banque centrale, mais plutôt à l’autorégulation, caractérisée par un excès de prudence des banques dans leur offre de crédits, particulièrement après avoir connu une période de forte concurrence.The aim of this thesis is to analyze the performance of Jordanian banks during the recent global crisis that started in 2007-2008. Under this theme, we approach the banking system regulatory issues, the information asymmetry and the credit risk. Special attention is paid to the analysis of the regulations stemming from various Basel agreements, which served as a model for the regulation of the Jordanian banking system. Indeed, not only the philosophy for banking regulation has evolved since the first agreement in 1988, but more interactions have emerged between regulatory systems with information and credit risk management related problems. Following the analysis of these three factors, we will study their role in the evaluation of the banking sector performance. We focus our study on Jordan, a country in which the structure of the banking market has been deeply disturbed in recent years by opening the market to international investors, by changing the prudential standards and the economic consequences of the global financial crisis. Our approach is to conduct a quantitative assessment of credit risk and performance, through the use of statistical and econometric methods. The results show that the degradation in the performance of Jordanian banks starting from 2008 is not mainly the result of the strict regulations implemented by the Central Bank of Jordan, but rather an auto-regulation characterized by the banks excessively cautious attitude to their credit supply, especially after a period of intense competition

ESG activities and bank performance: does bank ownership matter?

International audienc

Can Increasing Environmental Policy Stringency Promote Financial Development? Evidence from Panel Cointegration and Granger non-causality

International audienc

Banques en ligne et RSE : Quel impact sur la réputation de l’entreprise, la confiance et la fidélité des clients ?

International audienc

RSE et banques en ligne: le cas du marché sud-coréen

International audienceThe growing interest in corporate social responsibility (CSR) issues is not only for the traditional banks but also for the online banks. The latter, taking advantage of the Covid context that fosters digital transformation, has undergone remarkable development in recent years. Different from previous studies, our study focuses on online banks and examines how the integration of economic, philanthropic, ethical, and environmental concerns into banking activities affects their business development. Our results highlight the important role played by socially responsible activities in building customer loyalty through the bank’s reputation and customer trust.L’adoption des pratiques socialement responsables intéresse de plus en plus les banques à réseaux, mais aussi les banques en ligne. Ces dernières, profitant du contexte sanitaire favorisant la transformation digitale, ont connu un développement remarquable de leurs activités ces dernières années. Différentes des études précédentes, notre étude s’intéresse aux banques en ligne et vise à examiner comment l’intégration de préoccupations économiques, philanthropiques, éthiques, et environnementales à leurs activités affecte leur développement commercial. Les résultats mettent en exergue l’importance des activités socialement responsables dans la fidélisation des clients à travers la réputation de la banque et la confiance de ses clients

Does Increasing Environmental Policy Stringency Enhance Renewable Energy Consumption in OECD Countries?

International audienceThe literature lacks enough evidence on the effect of environmental policy stringency on renewable energy consumption. Therefore, the main objective of this study is to investigate the causal effect of the revised version of the Environmental Policy Stringency Index (EPS) and its components on Renewable Energy Consumption (REC), taking into account environmental innovation, trade openness, economic growth and consumer price index. To this end, we carry out dynamic and static analyses of the yearly data of 32 OECD countries during the period from 1990 to 2019. The two-step system GMM estimator and the forward-orthogonal deviations-GMM technique are used to deal with the potential endogeneity, serial correlation and cross-sectional dependence in the dynamic regression, while the Driscoll-Kraay standard errors technique and quantile regression are employed to estimate the static model. Unlike the existing literature, our results reveal that increasing environmental policy stringency can promote renewable energy. Both market and non-market-based environmental policies and technical support policies show positive effects on green energy use. These results imply that OECD governments can play a vital role in achieving the goal of net zero CO2 emissions by 2050. Increasing the stringency of the policies that put a price on pollution (such as energy taxes) raises the cost of polluted energy use, leading to a shift toward clean energy under the substitution effect. In addition, increasing the public R&D expenditure on solar and wind energy technologies can reduce renewable energy costs and prices, thus facilitating its generation and diffusion