Josep Vallverdu Calafell Antonio David Somoza Lopez Soledad Moya Gutierrez (Universitat de Barcelona)
Abstract
This article has an immediate predecessor, upon which it is based and with which readers must necessarily be familiar: Towards a Theory of the Credit-Risk Balance Sheet (Vallverdu, Somoza and Moya, 2006). The Balance Sheet is conceptualised on the basis of the duality of a credit-based transaction; it deals with its theoretical foundations, providing evidence of a causal credit-risk duality, that is, a true causal relationship; its characteristics, properties and its static and dynamic characteristics are analyzed. This article, which provides a logical continuation to the previous one, studies the evolution of the structure of the Credit-Risk Balance Sheet as a consequence of a businesss dynamics in the credit area. Given the Credit-Risk Balance Sheet of a company at any given time, it attempts to estimate, by means of sequential analysis, its structural evolution, showing its usefulness in the management and control of credit and risk. To do this, it bases itself, with the necessary adaptations, on the by-now classic works of Palomba and Cutolo. The establishment of the corresponding transformation matrices allows one to move from an initial balance sheet structure to a final, future one, to understand its credit-risk situation trends, as well as to make possible its monitoring and control, basic elements in providing support for risk management.
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Publisher Info
Paper provided by Universitat de Barcelona. Espai de Recerca en Economia in its series Working Papers in Economics with number
165.
Length: 45 pages Date of creation: 2006 Date of revision: Handle: RePEc:bar:bedcje:2006165
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Find related papers by JEL classification: M10 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - General M41 - Business Administration and Business Economics; Marketing; Accounting - - Accounting - - - Accounting M20 - Business Administration and Business Economics; Marketing; Accounting - - Business Economics - - - General
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