Category: Bank

Navigating the Complexity: Unraveling Italy’s Banking Landscape through Probability of Default Modeling

Italy’s banking sector, a mosaic of diversity, is dissected in a recent study that delves into the nuances of Probability of Default (PD) modeling. The intricacies of size, operations, and ownership structures create a landscape that demands careful consideration. This exploration aims to mirror the Italian banking panorama, offering insights gleaned from a meticulous dataset […]

Unraveling the Tapestry of Probability of Default Modeling: A Comprehensive Exploration of Italian Banking Dynamics

Embarking on a comprehensive exploration of Probability of Default (PD) modeling, we embark on a journey that traces its origins from the pioneering works of Beaver (1966), Altman (1968), and Ohlson (1980). The landscape has evolved, incorporating machine learning (ML) techniques, as showcased in modern studies like Moscatelli et al. (2020). Yet, a regulatory conundrum […]