Browsing by Subject "Merton model"
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Banking regulations: an examination of the failure of African Bank using Merton’s structural model
(AOSIS, 2017)The business of banking involves the taking of deposits and the making of loans. Banking balance sheets are typically highly leveraged, with equity capital generally dwarfed by debt capital. Banks are ... -
Estimation of the probability of default for sovereign credit risk using structural models
(North-West University (South Africa), 2022)Over the years, it has become imperative for creditors to know the creditworthiness of prospective borrowers. This research aims at predicting the probability of default by a sovereign state using a structural model (the ...