Human capital and credit risk management: training is more valuable than experience

In this research, the authors proposed a new method to evaluate borrowers’ credit risk and quality of financial statements information provided. They use qualitative and quantitative criteria to measure the quality and the reliability of its credit customers. Under this statement, the authors evaluate 35 features that are empirically utilized for forecasting the borrowers’ credit behavior of a Greek Bank. These features are initially selected according to universally accepted criteria. A set of historical data was collected and an extensive data analysis is performed by using non parametric models. Our analysis revealed that building simplified model by using only three out of the thirty five initially selected features one can achieve the same or slightly better forecasting accuracy when compared to the one achieved by the model uses all the initial features. Also, experimentally verified claim that universally accepted criteria can’t be globally used to achieve optimal results is discussed.

The aim of this current study was to analyze recent development of talent management among public service managers in Malaysia. The study brings understanding on talent management and broader human capital issues within Malaysia context by analysing the comprehensive literature. Government of Malaysia is emphasizing on development of talent in the public sector, as it is the most significant resource for the public service. The study found that the government has invested in various programs and initiatives to develop and produce key talented human capital within the public sector. However, despite the initiatives taken by the government, Malaysia is still short of talented people and struggling to develop talent, and talented skilful people are leaving. The study also indicated that year after year increasing number of graduates are being produced at the public universities, but the education system is not producing the right skilful individuals for the particular position or task, resulting in talent mismatch. Another key issue is the incapability to retain talented people that led to poor innovation and creativity within the country. Is key issue is part of the factors discussed in the 10th and 11th Malaysia Plan, and is a concern, as it plays a role in preventing the progress of Malaysia in achieving a developed nation by 2020. As one of the key aspirations of Malaysia is to enrich public service in Malaysia as a citizen centre that is having talented human capital. The study revealed that there is a need for in-depth quantitative and qualitative further research to discover new insights on talent management and retain talent among the public sector managers in Malaysia.

This study investigates the effect of credit risk and macroeconomic factors on profitability of 20 ASEAN banks, particularly from Indonesia, Malaysia, Thailand and Philippines, covering the period of 2012 to 2017. The unbalanced panel data were tested for heteroscedasticity and normality. A fixed effects model and a random effects model were utilized followed by simple ordinary least squares (OLS) regression. The obtained results show that credit risk and GDP growth negatively affect Return on Equity (ROE) at 5% level of significance. The inflation rate increases ROE by 0.323%. In terms of influence, inflation has the highest impact on ROE followed by GDP growth and credit risk. Credit risk and GDP growth negatively affect Return on Assets (ROA) at 5% level of significance. ROA was also influenced by an increase in inflation rate. Therefore, this study will help banks and bank managers, depositors, investors, policy makers and governments to identify factors affecting bank profitability.