Theoretical Perspective of Dynamic Credit Risk Analysis and Lending Model; Effective to Enterprises of Fragile Economy

Abstract

There is empirical evidence and objective argument, which justifies the core functioning of money in economic growth, and its correlation to the development of a nation, which equally establishes the reason for the relevant role of Banks in every economy. The underpinning of this study is to bring to bear the causal influence that promotes fragility of the financial system in undeveloped and developing economies, which hampers the smooth operative performances of enterprises in such economies, thereby, granting the author the reason to propose a theoretical perspective of dynamic credit-lending-risk analysis, as an upgrade model over the existing static credit-lending-risk analytical approach, found to be creating challenges to the productive efficiency of enterprises, within the same economies. Hence, destabilises the market power of such an economy, and deny the quality of its welfare State programme, while heightening its unemployment tension.

Keywords: Economics, Banking, Enterprises, Credit Lending, Credit Risk Analysis, Employment

JEL Classification: E2, E21, G2, G21, G23, G24