Distribution of credit-risk concentration in particular sectors of the economy, and economic capital before and during the COVID-19 pandemic

The aim of the work underpinning this paper has been to track the evolution of tail risk in banks' NPL portfolios present under normal and worst conditions (before and during the pandemic of COVID-19), and to estimate the impact of sector concentration risk on amounts of economic capital. Results further allowed for analysis of different sectors with a view to determining which is riskiest. The study makes use of a multi-factor structural model, given that each sector is affected by a different systematic risk factor, with the assets of borrowers from the same sector thus correlated markedly, even as correlations between sectors are low. The research has in fact sought the further development of methodology proposed by Düllmann and Masschelein in 2006—in the direction of improved accuracy of economic-capital estimates, thanks to alternate means of mapping out the sectoral factor correlation matrix. The empirical analysis was based on individual data from Prudential Reporting under the National Bank of Poland, as well as market data. Results reveal an increase in tail risk through the 2015–2017 period, as followed by the onset of a decline. Where the paper's second aim is concerned, there is found to be support for the idea that economic capital may be increased where sector concentration in the portfolio of a bank is accounted for. Tail risk is found to be concentrated in the sectors of construction and real estate, with accommodation and food services becoming more volatile during the pandemic. A channel for risk transfer between the financial and corporate sectors is thus found to exist. Thanks to the work done we have a better understanding of the impact of sectoral concentration of individual banks' lending activities on level of risk, with the possibility of this gaining application as stress tests are conducted, and as supervisory recommendations from Poland's Financial Supervision Authority are formulated.

The Mediation of Exam-oriented Cultural Capital: Economic Capital and Educational Inequality of Chinese High School Students During the COVID-19 Pandemic and School Closures.

While children and adolescents' education has been significantly affected during the COVID-19 pandemic and school closures, how they are impacted remains unknown. Based on Bourdieu's theory, this paper aims to examine whether cultural capital mediates the association between economic capital and academic achievement during the crisis. Using a longitudinal dataset from the Chinese high school and the moderated mediation model, the result showed that economic capital had a total effect on academic achievement, especially on the students' academic ranks. Meanwhile, economic-related inequality in education seemed to be mediated by cultural capital. Interestingly, the finding further indicated that the indirect effect was mainly attributable to exam-oriented cultural capital, compared with quality-based cultural capital. we discussed the theoretical contributions and policy implications in the end.

Distribution of credit-risk concentration in particular sectors of the economy, and economic capital before and during the COVID-19 pandemic

The aim of the work underpinning this paper has been to track the evolution of tail risk in banks' NPL portfolios present under normal and worst conditions (before and during the pandemic of COVID-19), and to estimate the impact of sector concentration risk on amounts of economic capital. Results further allowed for analysis of different sectors with a view to determining which is riskiest. The study makes use of a multi-factor structural model, given that each sector is affected by a different systematic risk factor, with the assets of borrowers from the same sector thus correlated markedly, even as correlations between sectors are low. The research has in fact sought the further development of methodology proposed by Dullmann and Masschelein in 2006-in the direction of improved accuracy of economic-capital estimates, thanks to alternate means of mapping out the sectoral factor correlation matrix. The empirical analysis was based on individual data from Prudential Reporting under the National Bank of Poland, as well as market data. Results reveal an increase in tail risk through the 2015-2017 period, as followed by the onset of a decline. Where the paper's second aim is concerned, there is found to be support for the idea that economic capital may be increased where sector concentration in the portfolio of a bank is accounted for. Tail risk is found to be concentrated in the sectors of construction and real estate, with accommodation and food services becoming more volatile during the pandemic. A channel for risk transfer between the financial and corporate sectors is thus found to exist. Thanks to the work done we have a better understanding of the impact of sectoral concentration of individual banks' lending activities on level of risk, with the possibility of this gaining application as stress tests are conducted, and as supervisory recommendations from Poland's Financial Supervision Authority are formulated.

Determinants of psychological well-being during the Covid-19 pandemic among "people living with HIV/AIDS" in India.

Using survey data on 647 "people living with HIV/AIDS" (PLHIV) respondents from India, we examine the association between human, economic, and social capital and psychological well-being during the Covid-19 pandemic, and whether pandemic-induced job and financial insecurity are significant stressors. We find that among human capital indicators, family health status results in a more positive mental state and fewer personal conflicts among PLHIV while having more working-age adults in the household results in more conflict. With regards to economic capital, PLHIV in salaried jobs and self-employment have a less positive mental state compared to those in daily wage work. Compared to daily wage workers, those in salaried jobs and self-employment exhibit lower addictive behavior. Self-employed PLHIV respondents also engage in fewer conflicts with their significant other. We do not find any correlation between social capital and psychological well-being. Job and financial insecurity are negatively associated with psychological well-being. While job insecurity is associated with an increase in addictive behavior, financial insecurity increases the likelihood of more frequent personal conflicts. We conclude that there is a need for greater economic and psychological support from institutions, community, and family to assuage the pandemic-induced psychological distress among PLHIV.ABBREVIATIONS: ART: antiretroviral treatment; GSNP+: Gujarat State Network of Positive People; MHI: mental health inventory; OBC: other backward castes; PLHIV: people living with HIV/AIDS; SC: scheduled castes; SD: standard deviation; ST: scheduled tribes.