“…For banks, when the asset portfolio is a loan portfolio, then banks can simply retain reasonable funds to meet the provision coverage ratio without excessively placing idle funds, thereby maximizing the bank's profitability while satisfying its risk preparation. The corresponding research on estimating firms' credit portfolio risk has been emphasized in both academia and industries (Hailemariam, Hill, & Demissie, 2012;Boudreault, Gauthier, & Thomassin, 2015;Chen, Zhou, Jin, & Zheng, 2018;Hsieh, Lee, Shyu, & Chiu, 2018;Osmundsen, 2018;Bülbül, Hakenes, & Lambert, 2019).…”