---
title: Bank Risk Projection with Sentiment Analysis
url: https://www.ml-quant.com/papers/repec/eee-reecon-v-77-y-2023-i-2-p-226-238/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: RePEc:eee:reecon:v:77:y:2023:i:2:p:226-238
source_url: https://econpapers.repec.org/scripts/redir.pf?u=http%3A%2F%2Fwww.sciencedirect.com%2Fscience%2Farticle%2Fpii%2FS1090944323000224%3Bh%3Drepec%3Aeee%3Areecon%3Av%3A77%3Ay%3A2023%3Ai%3A2%3Ap%3A226-238
featured: 2023-06-14
citations: unknown
topic: LLMs & Text
---


# Bank Risk Projection with Sentiment Analysis

Machine learning used to build new insolvency risk rating metric for Brazilian banks, with bank sentiment improving accuracy of prediction models.

- Source: https://econpapers.repec.org/scripts/redir.pf?u=http%3A%2F%2Fwww.sciencedirect.com%2Fscience%2Farticle%2Fpii%2FS1090944323000224%3Bh%3Drepec%3Aeee%3Areecon%3Av%3A77%3Ay%3A2023%3Ai%3A2%3Ap%3A226-238
- Identifier: RePEc:eee:reecon:v:77:y:2023:i:2:p:226-238
- Released: 2023-06-14
- First featured: Quant Letter No. 4 (2023-06-14): https://www.ml-quant.com/issues/2023-06-14/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: LLMs & Text

## Related

- [Investor Sentiment and Bank Credit](https://www.ml-quant.com/papers/repec/urv-wpaper-2072-534915/): Investor sentiment affects bank lending and financial stability, especially for banks with higher credit risk.
- [Uncertainty and financial market resilience: evidence from China](https://www.ml-quant.com/papers/arxiv/2409.18422/): The article evaluates the impact of external shocks, including climate policy uncertainty, on China's financial markets, revealing that such uncertainty affects investor sentiment, commercial banks' non-performing loan ratio, and the capital and financial account balance.
- [From Tone to Trajectory: Continuous Sentiment and the Shape of Monetary Policy Communication](https://www.ml-quant.com/papers/arxiv/2609.25034/): The study shows that how monetary policy sentiment unfolds across a press conference, not just its average tone, predicts rate changes and shapes forecaster expectations at the ECB and Fed.
- [Can ChatGPT Forecast Stock Price Movements? Return Predictability and Large Language Models](https://www.ml-quant.com/papers/ssrn/4412788/): ChatGPT predicts stock market returns using sentiment analysis, outperforming traditional methods.
- [Instruct-FinGPT: Financial Sentiment Analysis by Instruction Tuning of General-Purpose Large Language Models](https://www.ml-quant.com/papers/arxiv/2306.12659/): A new approach improves financial sentiment analysis by addressing limitations of language models.
- [Designing Heterogeneous LLM Agents for Financial Sentiment Analysis](https://www.ml-quant.com/papers/arxiv/2401.05799/): A study suggests using large language models without fine-tuning for financial sentiment analysis, offering a design framework that enhances accuracy.