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Estimation of default and asset correlation is crucial for banks to manage and measure portfolio credit risk. The purpose of this paper is to find empirical relationship between the default and asset correlation with default probability, to understand the effect of systematic risk.

The authors have estimated single default and implicit asset correlations for banks and corporates in India and compare it with global scenario. This paper deduces a simple methodology to estimate the default correlations from the variance of temporal default rates. Next, the asset correlations have been estimated analytically by decomposition of variance equation in Merton's one factor risk model following approaches of Gordy and of Bluhm and Overbeck.

The authors empirically find a negative relationship between asset correlation and the probability of default using Moody's global corporate data that support Basel II internal ratings‐based (IRB) correlation prescription. However, they do not find any smooth relationship between the probability of default (PD) and asset correlation for Indian corporate. The magnitude of correlation estimates based on a large bank's internal rating‐wise default rates are much lower than what is prescribed by the Basel committee. Thus, the standardized correlation figures as assumed by the Basel Committee on Banking Supervision need to be properly calibrated by the local regulators before prescribing their banks to calculate IRB risk weighted assets.

These correlation estimates will help the regulators, insurance firms and banks to understand the linkage between counterparty default risks with the systematic factors. The findings of this paper could be used further in estimating portfolio economic capital for large corporate exposures of banks and insurance companies.

The study aims to understand the influence of supplier development (SD) activities on supplier satisfaction through the lens of social capital theory (SCT) and to understand the mediating role of the buyer–supplier relationship (BSR) in improving supplier satisfaction (SS).

The research is based on survey of 110 key informants belonging to 50 medium to small supplier companies in the Indian automotive sector. We employed the PLS variance-based modelling technique for the data analysis.

The investigation resulted in a comprehensive framework for SD activities influencing SS. Further findings recognize a positive influence of SD activities such as payment terms and BSR, which are components of structural social capital on the SS. SD activities such as quality management and delivery, which are indicators of relational capital, affect SS through the mediation of BSR.

The study confirms the role of BSR in SS. The deliberations can help the managers of buyer and supplier firms and researchers to classify and strategize SD activities to improve performance and BSR to become preferred customers through SS.

The main purpose of this paper is to critically examine the impact of black money whitening opportunity on the Bangladesh housing market and its ramifications for honest taxpayers and criminal conduct of the people in the country.

This paper relies on both primary and secondary materials and carries out an archival analysis of the resources available in libraries and online databases.

It demonstrates that black money whitening opportunity has failed to create additional demands for housing property, rather it encourages money laundering, corruption and other criminal activities. Hence, a set of specific recommendations have been submitted to effectively deal with the prevention of generation of black money instead of allowing them to be invested in properties with impunity.

The discussions are concentrated on the legality of offering amnesty to black money holders and the impact of such indemnities on the housing market in Bangladesh; hence, it does not consider impacts on other economic sectors. It is expected that the publication of this paper will stimulate the government of Bangladesh to discontinue the disputed amnesty in Bangladesh, and other nations having similar problems with black money will be encouraged to follow suit.

It is anticipated that the implementation of the recommendations furnished in this paper will contribute to significantly decreasing money laundering, corruption and other offences involving money in Bangladesh and in other countries.

Prevention of corruption and other financial crimes.

This paper represents its originality in its critical analysis of frequent offerings of the opportunity for whitening black money and their unfair impacts on honest taxpayers and resultant stimulation for engaging in money laundering, corruption and other felonies. It evidently justifies the assumption that such amnesties to wrongdoers are contrary to the national constitution, anti-corruption and anti-money laundering legislation and they wound the sense of ethical behaviour of human beings. Moreover, it proves the hypothesis that such opportunities being offered to black money holders have no positive contribution towards creating additional demands in the country’s property markets.