Credit Risk and Financial Regulations

Latest papers

• Forward Target Propagation: A Forward-Only Approach to Global Error Credit Assignment via Local Losses

  Nazmus Saadat As-Saquib, A N M Nafiz Abeer, Hung-Ta Chien, Byung-Jun Yoon, Suhas Kumar, Su-in Yi · 2 October 2026

  Training neural networks has traditionally relied on backpropagation (BP), a gradient-based algorithm that, despite its widespread success, suffers from key limitations in both biological and hardware perspectives. These include backward error propagation by symmetric weights, non-local credit assig…

• zLend: A Dual-Scope Cash-Flow Reconstruction Framework for On-Chain Credit Underwriting

  Girish G N, Ashutosh Sahoo, Akshay SP, Gurukiran S, Dhanashekar Kandaswamy · 18 August 2026

  Decentralized lending lacks a credit bureau: a borrower's capacity to repay must be inferred entirely from public on-chain activity, without income verification or a liability record. This paper presents zLend, a deployed cash-flow underwriting framework that reconstructs a wallet's daily balance hi…

• Noise-Aware Differentially Private Variational Inference

  Talal Alrawajfeh, Joonas J\"alk\"o, Antti Honkela · 29 May 2026

  Differential privacy (DP) provides robust privacy guarantees for statistical inference, but this can lead to unreliable results and biases in downstream applications. While several noise-aware approaches have been proposed which integrate DP perturbation into the inference, they are limited to speci…

• CANDOR: Counterfactual ANnotated DOubly Robust Off-Policy Evaluation

  Aishwarya Mandyam, Shengpu Tang, Jiayu Yao, Jenna Wiens, Barbara E. Engelhardt · 28 May 2026

  Off-policy evaluation (OPE) is critical for applying contextual bandit algorithms to high-stakes decision-making settings such as healthcare, where new treatment policies must be evaluated prior to deployment. Unfortunately, OPE techniques are inherently limited by the breadth of the available data,…

• Toward a Risk Assessment Framework for Institutional DeFi: A Nine-Dimension Approach

  Eva Oberholzer (ZWING Intelligence AG, Zug, Switzerland), Valeriy Zamaraiev (ZWING Intelligence AG, Zug, Switzerland) · 7 May 2026

  Decentralized finance (DeFi) protocols now intermediate over USD 100 billion in value, including regulated stablecoins and tokenized assets deployed as collateral, yet no widely adopted framework operationalizes risk assessment at the rigor institutional adoption demands. Existing approaches emphasi…

• Data-driven Error Estimation: Excess Risk Bounds without Class Complexity as Input

  Sanath Kumar Krishnamurthy, Anna Lyubarskaja, Emma Brunskill, Susan Athey · 5 February 2026

  Constructing confidence intervals that are simultaneously valid across a class of estimates is central to tasks such as multiple mean estimation, generalization guarantees, and adaptive experimental design. We frame this as an ``error estimation problem," where the goal is to determine a high-probab…