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A model is proposed to estimate the probability distribution of asset value based on the benefit effects as well as the risk effects of deposit insurance with the minimum cross-entropy principle. Three scenarios are constructed to depict situations with different dual effects of deposit insurance. The corresponding assets distribution functions are obtained accordingly. The results show that it is positively correlated between the supervision level and the risk aversion effects of deposit insurance. The increase of the deposit insurance premium moves the bank’s assets distribution to the right side although not significantly. The asset probability distributions estimated in this paper can be taken as a reference for banks to choose the proper credit investment projects.

The study examines commercial banks profitability in Tanzania for the period of ten years (2000-2009).Thestudy used National Microfinance Bank (NMB), National Bank of Commerce (NBC) and CRDB as the casestudy. The study employed the profitability measures of commercial banks, and the evidence of performance interms of profitability was established based on return on average asset, net interest income to average bearingassets and non-interest expenses to average assets. The paper utilized panel secondary data from National bankof commerce, CRDB and National Microfinance bank in Tanzania for the period of ten years, and the hypothesiswas tested to know whether there is a significant difference in terms of profitability by using ANOVA test.Finally the regression model was run to see the effects of capital adequacy, liquidity and asset quality on theprofitability of commercial banks. The findings revealed that there is no significant difference on profitabilityamong the commercial banks, in the context of regression model it has been noted that liquidity and asset qualityhas positive impact in profitability with exception to the level of nonperforming loans which has a negativeinfluence on profitability. Also capital adequacy has shown negative impact on profitability. The studyconfirmed the profitability of commercial banks to stable and meeting the regulatory requirement of the Bank ofTanzania (BOT).

This paper gives an overview picture of commercial banks liquidity position in Tanzania for the period of ten years (2000 to 2009). The study employed the liquidity measures of commercial banks, and on that basis the performance in terms of liquidity position was established. The paper used the casual research design as the methodology of the study since the casual design is best suited to determine cause and effects of the phenomenon. This paper utilizes secondary data from National Bank of Commerce (NBC), CRDB and National Microfinance Bank (NMB). The criteria used is total deposit to core funding, liquid asset to demand liabilities and Gross loans to total deposit Tanzania for the period of ten years, and finally the hypothesis was tested to know whether there is a significant difference in terms of liquidity position by using ANOVA test. The findings revealed that the commercial banks under study have strongest liquidity level although it varied over years and National Microfinance Bank maintained strongest liquid level compared to the other two banks.

Much research has been done on the corporate economic performance evaluation. But after the global economic recession, research has switched to those performance evaluation areas based on social responsibility. In order to deal with the challenge, after fully consideration of the direct participant's contribution and profit, this paper set up a performance evaluation index system based on the perspective of wealth creation and distribution to determine the weight by using AHP, to sort orders by using TOPSIS. This paper also did exploratory analysis on comprehensive performance of 10 listed companies in service industry in the period of six years.

This paper used mixed logit model to predict credit risk of listed companies in China. In order to reduce the difficulty in dealing with the facts of correlation and multi-dimension of the financial indexes of listed companies and meanwhile to ensure that the data are not lost, we introduced factor analysis to the mixed logit equation and constructed a Factor Analysis Mixed Logit Model. Fifteen factors were extracted from original financial indexes, and four main factors which effect dramatically were selected to substitute the original financial indexes as explanatory variables. The results show that the new approach is reliable, and general prediction accuracy is higher than 80%.

The appearance of new Copula functions-distorted Copula functions are attracted more and more attention. In this paper, by using Monte Carlo simulation, we find that the tail dependence of distorted Copula functions is better than that of normal Gaussian Copula functions. By using distorted copula functions to price BDS, we investigate the default risk of the BDS. The results show that the distorted Copula functions can be served as an effective tool for investigating BDS.

This paper studies the interaction of credit loan game. In our model with subjective and objective dual credit risk, multi-channel financial mode, we present game equilibrium relationship of the enterprise, the non-banking financial institution and the bank. Then we give corresponding investment and financing policies, and in detailed explain following problems such as the impact of the enterprise's absolute risk-aversion degree and bank's loan interest on enterprise's income, the relationship between optimal financing structure and moral hazard, loan interest rate. We give each of the optimal strategies under the game equilibrium condition. Then by empirical analysis we explore the root cause for the financing difficult. Finally, we give some policy suggestions for this point.

Longevity risk is an important risk factor for payments of pension annuities. Securitization of this risk can offer great opportunities for hedging. The purpose of this article is to design longevity bonds, payments of which depend on the survival index of a certain population. Considering characteristics of the people survival and interest rates market, Feller process with jumps is used to model the death intensity to get a survival function. And the interest rate is described with Cox-Ingersoll-Ross(CIR) model. Due to the CAPM pricing methods rarely suit to the hypotheses of complete market, the paper uses Wang transform to value the bond in an incomplete market framework Finally, empirical study is conducted with data of Chinese life table.

The major purpose of this paper is to apply the fuzzy approach to analyze the valuation of European barrier options with fuzzy parameters. We mainly discuss the call and put option of up-and-out type. For a set of given fuzzy parameters, such as fuzzy interest rate, fuzzy dividend rate, fuzzy volatility rate and fuzzy stock price, we derive the fuzzy patterns of call and put European barrier option formulae. On the basis of some certain belief degrees of financial analyst, we use the trapezoidal fuzzy numbers to model the uncertain property of parameters, and corresponding to call and put option of up-and-out type, we give the computation approach of left- and right-end points of the closed interval of option price. Furthermore, we give some numerical results for some explicit parameters and belief degrees.