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Financial security is the foundation of industrial security. How to avoid financial risks in the development of the financial industry, how to promote the progress of financial system reform, how to develop various financial markets, how to build a modern financial system with diversified structure and working methods, reasonable structure, complete functions, and efficient and safe, and how to achieve the development goals of enhancing competitiveness, optimizing capital market structure, and increasing the proportion of liquid assets in the banking and insurance industries are the key to solving financial security risks. From the overall financial situation, this is an urgent and important task. This article explored the intelligent prediction of financial security risks based on the HMM-LDA model. Firstly, a detailed introduction was provided to financial security risks, intelligent prediction, and the HMM-LDA model. Finally, the progressiveness of the financial security risk intelligent system based on this model was verified through experimental analysis (the prediction error rate based on HMM-LDA model was lower than 4.12%, and the accuracy was 76% to 99%, which was significantly better than other models). [ABSTRACT FROM AUTHOR]

The method of recognizing faults in a software system is acknowledged as software fault prediction. Software faults predicted in prior stages help in the management of resources and time required during software testing and maintenance. The identified software module can be fixed ahead of time, saving time and money near the end of the software development process. Over the years, various supervised machine learning-based techniques for fault prediction have been suggested. These models' accuracy is based on the training datasets. The models are created and trained using a labeled dataset consisting of multiple independent variables like lines of codes, the complexity of the software, the size of the software, etc., and a dependent binary variable, either true or false. But the fault dataset may have some concerns like a class overlapping problem, class imbalance problem, null values, etc. Recent research in software fault prediction focuses on data quality. An imbalanced dataset is one in which one of the class data is present in the majority and another class data is present in the minority. Models built using imbalanced datasets are biased which results in inaccurate predictions. Therefore, balancing the dataset is important. In this paper, the most recent software fault prediction algorithms, which focus on class imbalance issues are discussed. A comparative presentation is presented in this paper, which would benefit the scholar in selecting the best techniques of fault prediction based on different datasets and algorithms. According to the survey, SMOTE is the most commonly used data sampling technique for dealing with data quality issues. [ABSTRACT FROM AUTHOR]

This research intends to investigate whether the "bank capital channel" does exist, by examining the relationship between bank capital and liquidity creation through 35 Asian countries over the period 2001–2018 and contributes to the literature in several respects. First, this study confirms the existence of the "bank capital channel" and solves the puzzle between the "risk absorption" hypothesis and the "financial fragility-crowding out" hypothesis. Our results reveal that strongly-capitalized banks retain more liquid assets, but do not lend more. Second, we explore the role of liquidity on the effects of bank capital and lending. Third, this study investigates whether the effect of bank capital on lending differs depending upon the role of political risk. Higher political risk leads to a higher level of uncertainty and results in a decrease of liquidity creation; only properly-capitalized banks are able to increase their liquidity creation. Our robustness tests also reveal that the "risk absorption" effect remains for commercial banks and large banks. However, cooperative banks have a greater positive effect on the banking capital channel probably due to differences in capital requirements. We also consider the effects of concentration and a financial crisis and find that liquidity creation drops under higher competition and during a crisis period. Lastly, we discuss policy implications. [ABSTRACT FROM AUTHOR]

This study examines the influence of tourism micro, small, and medium-sized enterprises' (SMEs) business characteristics and liquidity and their managers' demographic characteristics and expectations for assistance regarding crisis management practices (CMP) during the COVID-19 pandemic. The survey was conducted in the Republic of Slovenia, where the majority of businesses are classified as SMEs. This study focuses on tourist agencies, lodging, and food and beverage facilities. Overall, 572 valid online questionnaires have been obtained from SME managers. The research model included five research constructs: CMPs, SMEs business characteristics, liquidity, managers' demographic characteristics, and their expectations for assistance. Results show that managers primarily rely on labour CMPs; liquidity, assistance from stakeholders, and governmental aid in dealing with the crisis. Results also indicate that SMEs' business characteristics, managers' demographic characteristics, and liquidity do not influence CMPs. The amount of provided governmental aid positively influences managers' expectations for assistance from other stakeholders of the business ecosystem, while the amount of SMEs' liquid assets negatively influences managers' expectations for governmental aid. The use of selected indicators enables an internationally comparable benchmarking process and facilitates the improvement of crisis management in tourism SMEs. The conclusion provides recommendations and useful information for researchers, policymakers, and managers. [ABSTRACT FROM AUTHOR]

Copyright of Revista Española de Sociología is the property of Federacion Espanola de Sociologia and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The aim of this study is Islamic and conventional banking continued its activities in Turkey, the factors that affect liquidity risk management is to test the panel data regression analysis. For this purpose, quarterly financial data of Islamic and conventional banks were used. In the scope of the analysis, a total of 6 banks (3 participation and 3 traditional) operating between 2014-2018 were included. As a result of the analysis, it was found that there is a negative and statistically significant relationship between liquid assets (LA), gross domestic product (GDP) and inflation (INF) variables and liquidity risk at 99% confidence level for Islamic banks. NPL has a positive and statistically significant effect on Islamic banking with 95% reliability. The relationship between NPL and liquid assets (LA) variables and liquidity risk in conventional banks was negative and statistically significant at 95% and 99% confidence levels, respectively. These results are valuable in terms of which variables both conventional and Islamic banks should prioritize in managing liquidity risk. [ABSTRACT FROM AUTHOR]

We examine the impact of the recent global crisis on the stability of the global financial system. We use seven measures of stability that include Bank Z-Score, Bank non-performing loans, Bank capital, Bank credit, Regulatory capital, Liquid assets, and Provisions to non-performing loans. These data are from World Bank's Global Financial Development Database (GFDD). Our findings indicate that during the run-up to the crisis, there was no significant change in any of the stability measures. Our findings also indicate that, during the crisis period, banks' non-performing loans significantly increased while their liquid assets significantly decreased. Interestingly, Bank Z-Score, Bank capital, Bank credit, Regulatory capital, and Provisions to nonperforming loans did not change significantly during the crisis period. When we look at the period after the crisis, we are seeing that banks reacted by reducing credits and increasing their regulatory capital. However, during this post-crisis period, banks suffered even more because of continuing increase in non-performing loans. We are hoping that these findings on the timing of changes in these measures will help banks and policymakers in devising strategies to deal with the problems before they occur. [ABSTRACT FROM AUTHOR]

The aim of this paper is to measure how commercial banks from the Visegrad countries are sensitive to crisis confidence on the interbank market. We use a stress scenario which simulates a withdrawal of 20% of interbank deposits and measure the relative changes of selected liquidity ratios. Banks in all Visegrad countries are sensitive to the crisis confidence on the interbank market. Mainly for some Hungarian and Polish banks, this scenario could have fatal consequences and could threaten the existence of these banks. In case of Czech and Slovak banks, crisis confidence might have rather secondary impacts. [ABSTRACT FROM AUTHOR]

The recent financial crisis has shown that a liquidity risk plays an important role in the current developed financial system. Some Hungarian and Polish banks suffered liquidity problems, too. This paper therefore aims to describe development of liquid asset ratio and to find out determinants which affect their values in the Visegrad countries. The data cover the period from 2000 to 2011. Liquidity of Czech banks declined in 2000-2009 (due to higher lending activity and decrease of balances with central banks and other banks) but it has improved during last two years. Liquidity of Slovak banks has decreased in 2009 and 2010 due to impact of financial crisis on some economic sectors and due to changes in interbank market transactions. Very similar is the development of liquid asset ratio in Hungary and Poland where it has gone down during last five years due to important structural weaknesses such as very high loan-to-deposit ratio, high share of foreign debts, and negative net position in the interbank market. Furthermore, we focus on determinants of liquid asset ratio. Results of the panel data regression analysis showed that the liquid asset ratio is mostly influenced by the size of the bank, its capital adequacy and profitability. Also overall macroeconomic conditions, such as growth rate of gross domestic product, the existence of financial crisis, exchange rate or rate of unemployment and the development of interest rates (both on loans and interbank transaction) are important. Although the Visegrad countries have a lot in common, different factors determined liquid asset ratio in individual countries and also the direction of influence of some factors may differ. [ABSTRACT FROM AUTHOR]

Copyright of Brazilian Review of Finance / Revista Brasileira de Finanças is the property of Sociedade Brasileira de Financas and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Abstract: This paper presents a new methodology for hedging long-term financial derivatives written on an illiquid asset. The proposed hedging strategy combines dynamic trading of a correlated liquid asset (e.g. the market index) and static positions in market-traded options such as European puts and calls. Moreover, since most market-traded options are relatively short-term, it is necessary to conduct the static hedge sequentially over time till the long-term derivative expires. This sequential static-dynamic hedging strategy leads to the study of a stochastic control problem and the as-sociated Hamilton-Jacobi-Bellman PDEs and variational inequalities. A series of transformations allow us to simplify the problem and compute the optimal hedging strategy. [Copyright &y& Elsevier]

Abstract: This study examines the determinants of cash-holding levels for restaurant firms. After examining a panel data set obtained from 125 publicly traded US restaurant firms between 1997 and 2008, the study provides evidence that restaurant firms with greater investment opportunities tend to hold more cash. At the same time, large restaurant firms, firms holding liquid assets other than cash, firms with higher capital expenditures, and firms paying dividends were shown to hold less cash. The results are generally supportive of the trade-off theory of cash holdings. In particular, both precautionary and transaction motives play important roles in explaining the determinants of cash holdings for restaurant firms. [Copyright &y& Elsevier]

Copyright of Economic History Research / Investigaciones de Historia Económica is the property of Asociacion Espanola de Historia Economica and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Tremendous effort has been spent on the construction of reliable efficient frontiers. However, mean-variance efficient portfolios constructed using sample means and covariance often perform poorly out of sample. We prove that, the capital market line is the efficient frontier for the risky assets in a financial market with liquid fixed income trading. This unified understanding of riskless asset as the boundary of risky assets relieves the burden of constructing efficient frontiers in asset allocation problems, and allows for much better asset allocation decisions. It greatly simplifies the exposition on investment theory. [ABSTRACT FROM AUTHOR]

Copyright of Economics / Ekonomija is the property of Rifin d.o.o. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper investigates the forecasting of the medium-term performance of restructured tourism firms using a new adaptive integrated predictor. The predictor incorporates internal characteristics of firms (economic factors and management practice), restructuring characteristics (strategy types and payment means), and timing (e.g. calendar month) of the restructuring. The results show that, the firms that perform better after restructuring are those that: a) have experience of operating under liability, b) are able to acquire large amounts of undistributed profit and liquid assets, and c) are able to increase their turnover. Tourism firms that generate large proportion of profit with their equity value and rapid growth in their operational income will suffer losses due to restructuring. Forecasting the medium-term performance of restructured tourism firms needs to take account of time heterogeneity derived from the periodicity (seasonality) inherent to the tourism industry. The adaptive integrated predictor presented in this paper performs better than a series of benchmark models, because it is able to allow for both the high-risk nature and periodicity of the tourism industry. [ABSTRACT FROM AUTHOR]

In this paper, we explore the result of Epstein [Int. Econ. Rev. 21 (1980) 269] using a more general utility function that incorporates Kreps–Porteus preferences. We demonstrate that consumers postpone a commitment to non-durable consumption and hold more liquid assets not only by a high degree of intertemporal substitution but also by a preference for the early resolution of uncertainty. We also discuss a potential advantage of Kreps–Porteus preferences in examining the interaction between asset pricing and liquidity demand. [Copyright &y& Elsevier]

The article discusses the Monetary Authority of Singapore (MAS) and its issuance of MAS Notice 1015 entitled "Minimum Liquid Assets and Liquidity Coverage Ratio" on December 16, 2015 which applies to merchant banks in Singapore, and it mentions Basel III Liquidity Coverage Ratio rules.

The article reports that the Monetary Authority of Singapore (MAS) has consulted proposed disclosure requirements promulgated by the Basel Committee on Banking Supervision (BCBS) which are intended to complement the liquidity coverage ratio (LCR) requirement.

The article reports that Monetary Authority of Singapore (MAS) has published a consultation paper on the Proposed Notice on Liquidity Coverage Ratio (LCR) and Minimum Liquid Assets (MLA) regarding the liquidity requirement framework for merchant banks.

The article discusses the Monetary Authority of Singapore (MAS) and its issuance of MAS Notice 649 on November 28, 2014 which is entitled "Minimum Liquid Assets and Liquidity Coverage Ratio." According to the article, MAS Notice 649 introduces an additional liquidity requirement framework for banks, finance companies, and merchant banks operating in Singapore. Banking supervision is mentioned, along with capital adequacy and the Basel III international banking regulations.

The article discusses the Monetary Authority of Singapore (MAS) and its issuance of MAS Notice 649 on “Minimum Liquid Assets and Liquidity Coverage Ratio” on November 28, 2014 which is designed to introduce an additional liquidity requirement framework for banks, finance companies, and merchant banks in Singapore. According to the article, MAS Notice 649 will implement the Basel III international bank supervision regulation's liquidity coverage ration rules. Bank compliance is also examined.