Search results for: Basel accords

Authors: Emilia Klepczarek

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The Basel Committee on Banking Supervision and the OECD found problems with the mechanisms of corporate governance as one of the major causes of destabilization of the financial system and the subprime crisis in the years 2007-2010. In response to these allegations, there were formulated a number of recommendations aimed at improving the quality of supervisory standards in financial institutions. They relate mainly to risk management, remuneration policy, the competence of managers and board members and transparency issues. Nevertheless, a review of the empirical research conducted by the author does not allow for an unambiguous confirmation of the positive impact of the postulated standards on the stability of banking entities. There is, therefore, a presumption of the existence of hidden variables determining the effectiveness of the governance mechanisms. According to the author, this involves concepts arising from behavioral economics and economic anthropology, which allow for an explanation of the effectiveness of corporate governance institutions on the basis of the socio-cultural profile of its members. The proposed corporate governance culture theory indicates that the attributes of the members of the organization and organizational culture can determine the different effectiveness level of the governance processes in similar formal corporate governance structures. The aim of the presentation is, firstly, to draw attention to the vast discrepancies existing within the results of research on the effectiveness of the standards of corporate governance in the banking sector. Secondly, the author proposes an explanation of these differences on the basis of governance theory breaking with common paradigms. The corporate governance culture theory is focused on the identity of the individual and the scope of autonomy offered within his or her institution. The coexistence of these two conditions - the adequate behavioral profile and enough freedom to decide - is a prerequisite for the efficient functioning of the institutions of corporate governance, which can contribute to rehabilitating and strengthening the stability of the financial sector.

Keywords: autonomy, corporate governance, efficiency, governance culture

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Authors: Ludmila Vucolova

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The thought is a process that underlies consciousness and cognition and understanding its origin and processes is a longstanding goal of many academic disciplines. By integrating over twenty novel ideas and hypotheses of this theoretical proposal, we can speculate that thought is an emergent property of coded neural events, translating the electro-chemical interactions of the body with its environment—the objects of sensory stimulation, X, and Y. The latter is a self- generated feedback entity, resulting from the arbitrary pattern of the motion of a body’s motor repertory (M). A culmination of these neural events gives rise to a thought: a state of identity between an observed object X and a symbol Y. It manifests as a “state of awareness” or “state of knowing” and forms our perception of the physical world. The values of the variables of a construct—X (object), S1 (sense for the perception of X), Y (object), S2 (sense for perception of Y), and M (motor repertory that produces Y)—will specify the particular conscious percept at any given time. The proposed principle of interaction between the elements of a construct (X, Y, S1, S2, M) is universal and applies for all modes of communication (normal, deaf, blind, deaf and blind people) and for various language systems (Chinese, Italian, English, etc.). The particular arrangement of modalities of each of the three modules S1 (5 of 5), S2 (1 of 3), and M (3 of 3) defines a specific mode of communication. This multifaceted paradigm demonstrates a predetermined pattern of relationships between X, Y, and M that passes from generation to generation. The presented analysis of a cognitive experience encompasses the key elements of embodied cognition theories and unequivocally accords with the scientific interpretation of cognition as the mental action or process of acquiring knowledge and understanding through thought, experience, and the senses, and cognition means thinking and awareness. By assembling the novel ideas presented in twelve sections, we can reveal that in the invisible “chaos”, there is an order, a structure with landmarks and principles of operations and mental processes (thoughts) are physical and have a biological basis. This innovative proposal explains the phenomenon of mental imagery; give the first insight into the relationship between mental states and brain states, and support the notion that mind and body are inseparably connected. The findings of this theoretical proposal are supported by the current scientific data and are substantiated by the records of the evolution of language and human intelligence.

Keywords: agent, awareness, cognitive, element, experience, feedback, first person, imagery, language, mental, motor, object, sensory, symbol, thought

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Authors: Masyitah Abd Aziz, Mohd Sabere Sulaiman, Norsiah Hassan, Jamilah Halina Abdul Halim, Mohd Saipul Asrafi Haron

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A well-defined terminology of ‘Marseilles’ clay roof tiles in conservation works will easily characterize the communication delivery between expert and layperson, which will help people effectively understand to such specific knowledge areas. While it reduces ambiguity and increases clarity, the communication will translate very fast as it encourage an important factor in quality of the preservation of cultural heritage for future generations. The experts in conservation works faces many important terms, and indeed the very basic terminology in conservation areas were misunderstood. Thus, there were such terminology that being taken for granted and just follow seriously the tradition of the common practitioner without having any precise knowledge of what it entails. This study aims to investigate on the misconception of the terminology of ‘Marseilles’ clay roof tiles that being used in Malaysia’s conservation work. To avoid confusion of the terminology of ‘Marseilles’ clay roof tiles that will be followed through by the next generation, observation, interviews, and readings from the literature reviews on the terminology of the roof tiles has been done. It shows some evidence that ‘Marseilles’ were referring specific to French type roof tiles that developed by the Gilardoni Brothers in 1851. It was also found in Mangalore as the pioneered manufacturer in the 1860s by The Common Wealth Trust Ltd (Basel Mission tile factory). The interlocking clay roof types that has been used in Malaysia have the similarity and are influenced by both Europe and India. However, ‘Marseilles’ terminology was commonly used in Malaysia’s conservation works which led to the misconception of the real interpretation of all interlocking clay roof tiles type. The future generations will found that the well-defined terminology will gives a specific impact on conservation method and techniques. These range of applications to which roof tiles terminology will direct the future experts to make realistic suggestion for a future sustainable conservation approaches. Furthermore, it should contributes value added to conservation knowledge as well as holistic references for next generation.

Keywords: interlocking roof tiles, marseilles, misconception, terminology

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Authors: Laurent Pitteloud, Jörg Meier

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Piled raft foundations represent an efficient and reliable technique for transferring high vertical and horizontal loads to the subsoil. Piled raft foundations were success­fully implemented for several high-rise buildings world­wide over the last decades. For the structural design of this foundation type the stiffnesses of both the piles and the raft have to be deter­mined for the static (e.g. dead load, live load) and the dynamic load cases (e.g. earthquake). In this context the question often arises, to which proportion wind loads are to be considered as dynamic loads. Usually a piled raft foundation has to be monitored in order to verify the design hypotheses. As an additional benefit, the analysis of this monitoring data may lead to a better under­standing of the behaviour of this foundation type for future projects in similar subsoil conditions. In case the measurement frequency is high enough, one may also draw conclusions on the effect of wind loading on the piled raft foundation. For a 41-storey office building in Basel, Switzerland, the preliminary design showed that a piled raft foundation was the best solution to satisfy both design requirements, as well as economic aspects. A high-frequency monitoring of the foundation including pile loads, vertical stresses under the raft, as well as pore water pressures was performed over 5 years. In windy situations the analysis of the measure­ments shows that the pile load increment due to wind consists of a static and a cyclic load term. As piles and raft react with different stiffnesses under static and dynamic loading, these measure­ments are useful for the correct definition of stiffnesses of future piled raft foundations. This paper outlines the design strategy and the numerical modelling of the aforementioned piled raft foundation. The measurement results are presented and analysed. Based on the findings, comments and conclusions on the definition of pile and raft stiffnesses for vertical and wind loading are proposed.

Keywords: design, dynamic, foundation, monitoring, pile, raft, wind load

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Authors: Peter Fornaro, Lothar Schmitt

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The Digital Humanities Lab and the Institute of Art History at the University of Basel are collaborating in the SNSF research project ‘Digital Materiality’. Its goal is to develop and enhance existing methods for the digital reproduction of cultural heritage objects in order to support art historical research. One part of the project focuses on the visualization of a small eye-catching group of early prints that are noteworthy for their subtle reliefs and glossy surfaces. Additionally, this group of objects – known as ‘paste prints’ – is characterized by its fragile state of preservation. Because of the brittle substances that were used for their production, most paste prints are heavily damaged and thus very hard to examine. These specific material properties make a photographic reproduction extremely difficult. To obtain better results we are working with Reflectance Transformation Imaging (RTI), a computational photographic method that is already used in archaeological and cultural heritage research. This technique allows documenting how three-dimensional surfaces respond to changing lighting situations. Our first results show that RTI can capture the material properties of paste prints and their current state of preservation more accurately than conventional photographs, although there are limitations with glossy surfaces because the mathematical models that are included in RTI are kept simple in order to keep the software robust and easy to use. To improve the method, we are currently developing tools for a more detailed analysis and simulation of the reflectance behavior. An enhanced analytical model for the representation and visualization of gloss will increase the significance of digital representations of cultural heritage objects. For collaborative efforts, we are working on a web-based viewer application for RTI images based on WebGL in order to make acquired data accessible to a broader international research community. At the ICDH Conference, we would like to present unpublished results of our work and discuss the implications of our concept for art history, computational photography and heritage science.

Keywords: art history, computational photography, paste prints, reflectance transformation imaging

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Authors: Shehu Usman Rano Aliyu

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Despite the significance of finance as a major trade lubricant, evidence in the literature alludes to its scarcity and increasing cost, especially in developing countries where small and medium-scale enterprises are worst affected. The creation of the African Continental Free Trade Area (AFCFTA) in 2018, an organ of the African Union (AU), was meant to serve as a beacon for deepening economic integration through the removal of trade barriers inhibiting intra-African trade and movement of persons, among others. Hence, this research explores the role Islamic trade finance (ITF) could play in spurring intra- and inter-African trade. The study involves six countries; Egypt, Kenya, Malaysia, Morocco, Nigeria, and Saudi Arabia, and employs survey research, a total of 430 sample data, and SmartPLS Structural Equation Modelling (SEM) techniques in its analyses. We find strong evidence that Shari’ah, legal and regulatory compliance issues of the ITF institutions rhythm with the internal, national, and international compliance requirements equally as the unique instruments applied in ITF. In addition, ITF was found to be largely driven by global economic and political stability, socially responsible finance, ethical and moral considerations, risk-sharing, and resilience of the global Islamic finance industry. Further, SMEs, Governments, and Importers are the major beneficiary sectors. By and large, AfCFTA’s protocols align with the principles of ITF and are therefore suited for the proliferation of Islamic finance in the continent. And, while AML/KYC and BASEL requirements, compliance to AAOIFI and IFSB standards, paucity of Shari'ah experts, threats to global security, and increasing global economic uncertainty pose as major impediments, the future of ITF would be shaped by a greater need for institutional and policy support, global economic cum political stability, robust regulatory framework, and digital technology/fintech. The study calls for the licensing of more ITF institutions in the continent, participation of multilateral institutions in ITF, and harmonization of Shariah standards.

Keywords: AfCFTA, islamic trade finance, murabaha, letter of credit, forwarding

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Authors: Seba Mohanty, Jitendra Mahakud

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Capital ratio is one of the major indicators of the stability of the commercial banks. Pertinent to its pervasive importance, over the years the regulators, policy makers focus on the maintenance of the particular level of capital ratio to minimize the solvency and liquidation risk. In this context, it is very much important to identify the relationship between capital and risk and find out the factors which determine the capital ratios of commercial banks. The study examines the relationship between capital and risk of the commercial banks operating in India. Other bank specific variables like bank size, deposit, profitability, non-performing assets, bank liquidity, net interest margin, loan loss reserves, deposits variability and regulatory pressure are also considered for the analysis. The period of study is 1997-2015 i.e. the period of post liberalization. To identify the impact of financial crisis and implementation of Basel II on capital ratio, we have divided the whole period into two sub-periods i.e. 1997-2008 and 2008-2015. This study considers all the three types of commercial banks, i.e. public sector, the private sector and foreign banks, which have continuous data for the whole period. The main sources of data are Prowess data base maintained by centre for monitoring Indian economy (CMIE) and Reserve Bank of India publications. We use simultaneous equation model and more specifically Two Stage Least Square method to find out the relationship between capital and risk. From the econometric analysis, we find that capital and risk affect each other simultaneously, and this is consistent across the time period and across the type of banks. Moreover, regulation has a positive significant impact on the ratio of capital to risk-weighted assets, but no significant impact on the banks risk taking behaviour. Our empirical findings also suggest that size has a negative impact on capital and risk, indicating that larger banks increase their capital less than the other banks supported by the too-big-to-fail hypothesis. This study contributes to the existing body of literature by predicting a strong relationship between capital and risk in an emerging economy, where banking sector plays a majority role for financial development. Further this study may be considered as a primary study to find out the macro economic factors which affecting risk and capital in India.

Keywords: capital, commercial bank, risk, simultaneous equation model

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Authors: Samil Ozcan

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Airlines companies target different customer segments in consideration of pricing, service quality, flight network, etc. and their brand positioning accords with the marketization strategies developed in the same direction. The object of this study, Turkish Airlines, has many peculiarities regarding its brand positioning as compared to its rivals in the sector. In the first place, it appeals to a global customer group because of its Star Alliance membership and its broad flight network with 315 destination points. The second group in its customer segmentation includes domestic customers. For this group, the company follows a marketing strategy that plays to local culture and accentuates the image of Turkishness as an emotional allurement. The advertisements and publicity projects designed in this regard put little emphasis on the service quality the company offers to its clients; it addresses the emotions of the consumers rather than individual benefits and relies on the historical memory of the nation and shared cultural values. This study examines the publicity work which aims at the second segment customer group focusing on Turkish Airlines’ 85th Anniversary Commercial through a symbolic meaning analysis approach. The commercial presents six stories with undertones of nationalism in its theme. Nationalism is not just the product of collective interests based on reason but a result of patriotism in the sense of loyalty to state and nation and love of ethnic belonging. While nationalism refers to concrete notions such as blood tie, common ancestor, shared history, it is not the actuality of these notions that it draws its real strength but the emotions invested in them. The myths of origin, the idea of common homeland, boundary definitions, and symbolic acculturation have instrumental importance in the development of these commonalities. The commercial offers concrete examples for an analysis of Connor’s definition of nationalism based on emotions. Turning points in the history of the Turkish Republic and the historical mission Turkish Airlines undertook in these moments are narrated in six stories in the commercial with a highly emotional theme. These emotions, in general, depend on collective memory generated by national consciousness. Collective memory is not simply remembering the past. It is constructed through the reconstruction and reinterpretation of the past in the present moment. This study inquires the motivations behind the nationalist emotions generated within the collective memory by engaging with the commercial released for the 85th anniversary of Turkish Airlines as the object of analysis. Symbols and myths can be read as key concepts that reveal the relation between 'identity and memory'. Because myths and symbols do not merely reflect on collective memory, they reconstruct it as well. In this sense, the theme of the commercial defines the image of Turkishness with virtues such as self-sacrifice, helpfulness, humanity, and courage through a process of meaning creation based on symbolic mythologizations like flag and homeland. These virtues go beyond describing the image of Turkishness and become an instrument that defines and gives meaning to Turkish identity.

Keywords: collective memory, emotions, identity, nationalism

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