Search results for: bank failures

Authors: Lianne M. Q. Lee, Mohammed Sharaf Shaiban

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The importance of bank liquidity management took center stage as policy makers promoted a more resilient global banking system after the market turmoil of 2007. The growing recognition of Islamic banks’ function of intermediating funds in the economy warrants the need to investigate its balance sheet structure which is distinct from its conventional counterparts. Given that asymmetric risk, transformation is inevitable; Islamic banks need to identify the liquidity risk within their distinctive balance sheet structure. Thus, there is a strong need to quantify and assess the liquidity position to ensure proper functioning of a financial institution. It is vital to measure bank liquidity because liquid banks face less liquidity risk. We examine this issue by using two alternative quantitative measures of liquidity creation “cat fat” and “cat nonfat” constructed by Berger and Bouwman (2009). “Cat fat” measures all on balance sheet items including off balance sheet, whilst the latter measures only on balance sheet items. Liquidity creation is measured over the period 2007-2014 in 14 countries where Islamic and conventional commercial banks coexist. Also, separately by bank size class as empirical studies have shown that liquidity creation varies by bank size. An interesting and important finding shows that all size class of Islamic banks, on average have increased creation of aggregate liquidity in real dollar terms over the years for both liquidity creation measures especially for large banks indicating that Islamic banks actually generates more liquidity to the economy compared to its conventional counterparts, including from off-balance sheet items. The liquidity creation for off-balance sheets by conventional banks may have been affected by the global financial crisis when derivatives markets were severely hit. The results also suggest that Islamic banks have the higher volume of assets and deposits and that borrowing/issues of bonds are less in Islamic banks compared to conventional banks because most products are interest-based. As Islamic banks appear to create more liquidity than conventional banks under both measures, it translates that the development of Islamic banking is significant over the decades since its inception. This finding is encouraging as, despite Islamic banking’s overall size, it represents growth opportunities for these countries.

Keywords: financial institution, liquidity creation, liquidity risk, policy and regulation

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Authors: A. V. Shashkova

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The aim of the present article is to analyze the position of the Constitutional Court of the Russian Federation on the matter of restricting the constitutional rights of citizens to inviolability of professional and banking secrecy in effecting controlling activities. The methodological ground of the present Article represents the dialectic scientific method of the socio-political, legal and organizational processes with the principles of development, integrity, and consistency, etc. The consistency analysis method is used while researching the object of the analysis. Some public-private research methods are also used: the formally-logical method or the comparative legal method, are used to compare the understanding of the ‘secrecy’ concept. The aim of the present article is to find the root of the problem and to give recommendations for the solution of the problem. The result of the present research is the author’s conclusion on the necessity of the political will to improve Russian legislation with the aim of compliance with the provisions of the Constitution. It is also necessary to establish a clear balance between the constitutional rights of the individual and the limit of these rights when carrying out various control activities by public authorities. Attempts by the banks to "overdo" an anti-money laundering law under threat of severe sanctions by the regulators actually led to failures in the execution of normal economic activity. Therefore, individuals face huge problems with payments on the basis of clearing, in addition to problems with cash withdrawals. The Bank of Russia sets requirements for banks to execute Federal Law No. 115-FZ too high. It is high place to attract political will here. As well, recent changes in Russian legislation, e.g. allowing banks to refuse opening of accounts unilaterally, simplified banking activities in the country. The article focuses on different theoretical approaches towards the concept of “secrecy”. The author gives an overview of the practices of Spain, Switzerland and the United States of America on the matter of restricting the constitutional rights of citizens to inviolability of professional and banking secrecy in effecting controlling activities. The Constitutional Court of the Russian Federation basing on the Constitution of the Russian Federation has its special understanding of the issue, which should be supported by further legislative development in the Russian Federation.

Keywords: constitutional court, restriction of constitutional rights, bank secrecy, control measures, money laundering, financial control, banking information

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Authors: Shahla Ali

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In the context of promoting green infrastructure development, new opportunities are emerging to re-examine sustainable development practices. This paper presents an initial exploration of the development of community-investor dispute prevention and facilitation mechanisms in the context of the Belt and Road Initiative (BRI) spanning Asia, Africa, and Europe. Given the widescale impact of China’s multi-jurisdictional development initiative, learning how to coordinate with local communities is vital to realizing inclusive and sustainable growth. In the 20 years since the development of the first multilateral community-investor dispute resolution mechanism developed by the International Finance Centre/World Bank, much has been learned about public facilitation, community engagement, and dispute prevention during the early stages of major infrastructure development programs. This paper will explore initial findings as they relate to initiatives underway along the BRI within the Asian Infrastructure Investment Bank and the Asian Development Bank. Given the borderless nature of sustainability concerns, insights from diverse regions are critical to deepening insights into best practices. Drawing on a case-based methodology, this paper will explore the achievements, challenges, and lessons learned in community-investor dispute prevention and resolution for major infrastructure projects in the greater China region.

Keywords: law and development, dispute prevention, sustainable development, mitigation

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Authors: Zelalem Zerihun

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In this study, attempts were made to assess the bank-specific, industry-specific, and macro-economic factors affecting bank profitability. Data were collected from ten commercial banks in Ethiopia, covering the period of 2008-2012. A mixed method research approach was adopted for this research. Documentary analysis and in-depth interview were also used to substantiate the data. The study found out that capital strength, income diversification, bank size and gross domestic product are statistically significant and they have a positive relationship with banks’ profitability. However, operational efficiency and asset quality have a negative relationship with banks’ profitability. The relationship for liquidity risk, concentration and inflation were found to be statistically insignificant. The study revealed that focusing and reengineering the banks in light of the key internal drivers could enhance the profitability as well as the performance of the commercial banks in Ethiopia. In addition to this, the study suggests that banks in Ethiopia should not only be concerned about internal structures but also they must consider both the internal environment and the macro-economic environment in designing strategies to improve their profit or their performance.

Keywords: Ethiopian banking industry, macro-economic factors, documentary analysis, capital strength, income diversification

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Authors: Lilian Ogechi Iheukwumere-Esotu, Akilu Yunusa-Kaltungo, Paul Chan

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Industrial assets are prone to degradation and eventual failures due to repetitive loads and harsh environments in which they operate. These failures often lead to costly downtimes, which may involve loss of critical assets and/or human lives. The rising pressures from stakeholders for optimized systems’ outputs have further placed strains on business organizations. Traditional means of combating such failures are by adopting strategies capable of predicting, controlling, and/or reducing the likelihood of systems’ failures. Turnarounds, shutdowns, and outages (TSOs) projects are popular maintenance management activities conducted over a certain period of time. However, despite the critical and significant cost implications of TSOs, the management of the interface of knowledge between academia and industry to our best knowledge has not been fully explored in comparison to other aspects of industrial operations. This is perhaps one of the reasons for the limited knowledge transfer between academia and industry, which has affected the outcomes of most TSOs. Prior to now, the study of knowledge development trends as a failure analysis tool in the management of TSOs projects have not gained the required level of attention. Hence, this review provides useful references and their implications for future studies in this field. This study aims to harmonize the existing research trends of TSOs through a systematic review of more than 3,000 research articles published over 7 decades (1940- till date) which were extracted using very specific research criteria and later streamlined using nominated inclusion and exclusion parameters. The information obtained from the analysis were then synthesized and coded into 8 parameters, thereby allowing for a transformation into actionable outputs. The study revealed a variety of information, but the most critical findings can be classified into 4 folds: (1) Empirical validation of available conceptual frameworks and models is still a far cry in practice, (2) traditional project management views for managing uncertainties are still dominant, (3) Inconsistent approaches towards the adoption and promotion of knowledge management systems which supports creation, transfer and application of knowledge within and outside the project organization and, (4) exploration of social practices in industrial maintenance project environments are under-represented within the existing body of knowledge. Thus, the intention of this study is to depict the usefulness of a framework which incorporates fact findings emanating from careful analysis and illustrations of evidence based results as a suitable approach which can tackle reoccurring failures in industrial maintenance projects.

Keywords: industrial maintenance, knowledge management, maintenance projects, systematic review, TSOs

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Authors: Sameer Muhammad Aslam, Nura Said Mohsin Al-Saifi

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This research shows the process of creating a blood donation website for Oman. Blood donation is a widespread, crucial, ongoing process, so it is important that this website is easy to use. Several automated blood management systems are available, but none provides an effective algorithm that takes into account variables such as frequency of donation, donation date, and gender. In Oman, the Ministry of Health maintains a blood bank and keeps donors informed about the need for blood through a website. They also inform donors and the wider public where and when is their next blood donation event. The website's main goals are to educate the community about the benefits of blood donation. It also manages donor and receiver documentation and encourages voluntary blood donation by providing easy access to information about blood types and blood distribution in various hospitals in Oman, based on hospital needs.

Keywords: Oman, blood bank, blood donors, donor website

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Authors: Vera Diyanty, Akhmad Syahroza

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This research aims to describe an empirical evidence of the influence of family control on the company’s financing policy. Additionally, this research also shows the effect of leadership from family member and the effectiveness of the board of commissioners on companies’ financing policy. The result of this study found that family control through direct and indirect ownership mechanism have a positive impact on the choice of bank loan compare to public debt. Nevertheless, this research also shows that companies’ founders who become CEO and the effectiveness of board of commissioners do not prove to increase the alignment effect nor decrease the negative impact of entrenchment effect on the bank loan preference.

Keywords: family controlling, family CEO, board effectiveness, financing policy

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Authors: Achmad Muchaddam Fahham, Sony Hendra Permana

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For rural communities and micro-entrepreneurs, access to formal financial institutions is very difficult. So, borrowing to moneylenders is the most possible way to fulfill their needs. But actually it does not solve their problems, precisely their problems are increasing because they have to pay at very high-interest rates. For this reason, microfinance institution is very important as a solution for rural communities and micro-entrepreneurs who need loans to fulfill their needs. This paper aims to describe the role of micro waqf banks in Indonesia as an alternative funding for rural communities and micro-entrepreneurs. This research is descriptive using a qualitative approach. The interview technique was also carried out with key informants who understood sharia microfinance institutions. The results of the study revealed that the micro waqf bank is Islamic microfinance institutions which targeted the micro business sector by channeling small financing with a maximum financing of Rp1 million. The funding of this micro waqf bank comes from donors who donate funds through the Amil Zakat institution. The margins imposed on borrowers are as high as 3 percent per year, with payment schemes in installments every week, so it is made easier for borrower. In addition, financing is followed by training and mentoring so that borrower is able to utilize the loan for productive business activities. In the end, it is hoped that this micro waqf bank can become an incubator for micro businesses in Indonesia.

Keywords: micro business, micro waqf banks, micro-entrepreneurs, Amil Zakat institution

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Authors: Patience Muchini, Electdom Matandiroya, Emmanuel Mashonjowa

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A ground-end manifestation of space weather phenomena is known as geomagnetically induced currents (GICs). GICs flow along the electric power transmission cables connecting the transformers and between the grounding points of power transformers during significant geomagnetic storms. Geomagnetically induced currents have been studied in other regions and have been noted to affect the power grid network. In Zimbabwe, grid failures have been experienced, but it is yet to be proven if these failures have been due to GICs. The purpose of this paper is to characterize geomagnetically induced currents with a power grid network. This paper analyses data collected, which is geomagnetic data, which includes the Kp index, DST index, and the G-Scale from geomagnetic storms and also analyses power grid data, which includes reactive power, relay tripping, and alarms from high voltage substations and then correlates the data. This research analysis was first theoretically analyzed by studying geomagnetic parameters and then experimented upon. To correlate, MATLAB was used as the basic software to analyze the data. Latitudes of the substations were also brought into scrutiny to note if they were an impact due to the location as low latitudes areas like most parts of Zimbabwe, there are less severe geomagnetic variations. Based on theoretical and graphical analysis, it has been proven that there is a slight relationship between power system failures and GICs. Further analyses can be done by implementing measuring instruments to measure any currents in the grounding of high-voltage transformers when geomagnetic storms occur. Mitigation measures can then be developed to minimize the susceptibility of the power network to GICs.

Keywords: adverse space weather, DST index, geomagnetically induced currents, KP index, reactive power

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Authors: Jared Beard, Ali Baheri

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As autonomous systems become more prominent in society, ensuring their safe application becomes increasingly important. This is clearly demonstrated with autonomous cars traveling through a crowded city or robots traversing a warehouse with heavy equipment. Human environments can be complex, having high dimensional state and action spaces. This gives rise to two problems. One being that analytic solutions may not be possible. The other is that in simulation based approaches, searching the entirety of the problem space could be computationally intractable, ruling out formal methods. To overcome this, approximate solutions may seek to find failures or estimate their likelihood of occurrence. One such approach is adaptive stress testing (AST) which uses reinforcement learning to induce failures in the system. The premise of which is that a learned model can be used to help find new failure scenarios, making better use of simulations. In spite of these failures AST fails to find particularly sparse failures and can be inclined to find similar solutions to those found previously. To help overcome this, multi-fidelity learning can be used to alleviate this overuse of information. That is, information in lower fidelity can simulations can be used to build up samples less expensively, and more effectively cover the solution space to find a broader set of failures. Recent work in multi-fidelity learning has passed information bidirectionally using “knows what it knows” (KWIK) reinforcement learners to minimize the number of samples in high fidelity simulators (thereby reducing computation time and load). The contribution of this work, then, is development of the bidirectional multi-fidelity AST framework. Such an algorithm, uses multi-fidelity KWIK learners in an adversarial context to find failure modes. Thus far, a KWIK learner has been used to train an adversary in a grid world to prevent an agent from reaching its goal; thus demonstrating the utility of KWIK learners in an AST framework. The next step is implementation of the bidirectional multi-fidelity AST framework described. Testing will be conducted in a grid world containing an agent attempting to reach a goal position and adversary tasked with intercepting the agent as demonstrated previously. Fidelities will be modified by adjusting the size of a time-step, with higher-fidelity effectively allowing for more responsive closed loop feedback. Results will compare the single KWIK AST learner with the multi-fidelity algorithm with respect to number of samples, distinct failure modes found, and relative effect of learning after a number of trials.

Keywords: multi-fidelity reinforcement learning, multi-fidelity simulation, safety validation, falsification

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Authors: Omar Alsetoohy, Mohamed Ezzat, Mahmoud Abou Kamar

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The success of a restaurant or hotel depends very much on the quality and quantity of its human resources. Thus, establishing a competitive edge through human assets requires careful attention to the practices that best leverage these assets. Usually, hotel or restaurant employees recognize customer defection as an unfavorable or unpleasant occurrence associated with failure. These failures could be in handling, communication, learning, or encouragement. Besides, employees could be afraid of blame from their colleagues and managers, which prevents them from freely discussing these mistakes with them. Such behaviors, in turn, would push employees to withdraw from the workplace. However, we have a good knowledge of the leadership outcomes, but less is known about how and why these effects occur. Accordingly, mindful leaders usually analyze the causes and underlying mechanisms of failures for work improvement. However, despite the excessive literature in the field of leadership and employee behaviors, to date, no research studies had investigated the impact of a failure-tolerant restaurant culture on the employees’ withdrawal behaviors considering the moderating role of psychological empowerment and mindful leadership. Thus, this study seeks to investigate the impact of a failure-tolerant culture on the employees’ withdrawal behaviors in fast-food restaurants in Egypt considering the moderating effects of employee empowerment and mindful leaders. This study may contribute to the existing literature by filling the gap between failure-tolerant cultures and employee withdrawal behaviors in the hospitality literature. The study may also identify the best practices for restaurant operators and managers to deal with employees' failures as an improvement tool for their performance.

Keywords: failure-tolerant culture, employees’ withdrawal behaviors psychological empowerment, mindful leadership, restaurants

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Authors: Mehmet Savsar

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One of the most important factors affecting power plant performance is the reliability of the turbine units operated under different conditions. Reliability directly affects plant availability and performance. Therefore, it is very important to be able to analyze turbine units, as well as power plant system reliability and availability under various operational conditions. In this paper, data related to power station failures are collected and analyzed in detail for all power stations in the state of Kuwait. Failures are characterized and categorized. Reliabilities of various power plants are analyzed and availabilities are quantified. Based on calculated availabilities of all installed power plants, actual power output is estimated. Furthermore, based on the past 15 years of data, power consumption trend is determined and the demand for power in the future is forecasted. Estimated power output is compared to the forecasted demand in order to determine the need for future capacity expansion.

Keywords: power plants, reliability, availability, capacity, preventive maintenance, forecasting

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Authors: Shuyuan Lin, Zhaohui Huang, Mizi Fan

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In the majority of previous research into modelling large scale composite floor subjected to fire, the beam-to-column and beam-to-beam connections were assumed to behave either as pinned or rigid for simplicity, and the vertical shear and axial tension failures of the connection were not taken into account. We have recently developed robust two-noded connection models for modeling endplate and partial endplate steel connections under fire conditions. The main objective of this research is to systematically investigate the impact of the connections of protected beams, on the tensile membrane actions of supported floor slabs in which the failures of the connections, such as, axial tension, vertical shear and bending are accounted for. The models developed have very good numerical stability under a static solver condition, and can be used for large scale modelling of composite buildings in fire.

Keywords: fire, steel structure, component-based model, beam-to-column connections

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Authors: Anthony I. Otuonye, Juliet N. Odii, Perpetual N. Ibe

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The obvious challenges faced by most commercial bank customers while using the services of ATMs (Automated Teller Machines) across developing countries have triggered the need for an improved system with better security features. Current ATM systems are password-based, and research has proved the vulnerabilities of these systems to heinous attacks and manipulations. We have discovered by research that the security of current ATM-assisted banking services in most developing countries of the world is easily broken and maneuvered by fraudsters, majorly because it is quite difficult for these systems to identify an impostor with privileged access as against the authentic bank account owner. Again, PIN (Personal Identification Number) code passwords are easily guessed, just to mention a few of such obvious limitations of traditional ATM operations. In this research work also, we have developed a system of fingerprint biometrics with PIN code Authentication that seeks to improve the security features of traditional ATM installations as well as other Banking Services. The aim is to ensure better security at all ATM installations and raise the confidence of bank customers. It is hoped that our system will overcome most of the challenges of the current password-based ATM operation if properly applied. The researchers made use of the OOADM (Object-Oriented Analysis and Design Methodology), a software development methodology that assures proper system design using modern design diagrams. Implementation and coding were carried out using Visual Studio 2010 together with other software tools. Results obtained show a working system that provides two levels of security at the client’s side using a fingerprint biometric scheme combined with the existing 4-digit PIN code to guarantee the confidence of bank customers across developing countries.

Keywords: fingerprint biometrics, banking operations, verification, ATMs, PIN code

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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: Maciej Pieńkowski

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Lean Management is nowadays one of the most dominating management concepts within industrial and service environment, providing compelling business benefits to many companies. At the same time, its application in the non-governmental organizations has not been extensively researched yet. Filling this gap will address clear necessity of efficient management system in NGO environment and significantly improve operational performance of many organizations. The goal of the research is to verify effectiveness of Lean Management implementation in the non-governmental organizations, based on Wrocław Food Bank case study. The case study describes a Lean Management implementation project within analyzed organization. During the project, Wrocław Food Bank went through full 5-step Lean Thinking processes, which consist of value identification, value stream mapping, creation of flow, establishing pull and seeking perfection. The research contains a detailed summary of each of those steps and provides with information regarding results of their implementation. The major findings of the study indicate, that application of Lean Management in NGO environment is possible, however physical implementation of its guidelines can be strongly impeded by multiple constraints, which non-governmental organizations are facing. Due to challenges like limited resources, project based activities and lack of traditional supplier-customer relationship, many NGOs may fail in their efforts to implement Lean Management. Successful Lean application requires therefore strong leadership commitment, which would drive transformation to remove barriers and obstacles.

Keywords: lean management, non-governmental organizations, continuous improvement, lean thinking

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Authors: Maryam Najafi, Mahdi Rajabi

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Although the rural cooperatives are an effective way for rural development in Iran, their potential is not applied effectively. The investigation of the failures of rural cooperatives helps the authorities to improve the routine procedures and eliminate the current barriers to the success of these cooperatives, and to remove the defects in order to have a more efficient policy. Therefore, this research aims to prioritize the failure factors of rural cooperatives in Isfahan province via the survey research method. For this purpose, the effective factors of these failures were investigated by the available research documents and then by the new information which was obtained from 20 questionnaires from the experts of Central Organization Rural Cooperatives in Isfahan province. The questionnaire results were analyzed by Analytical Hierarchy Process (AHP), Excel, and Expert Choice software. The results of this research showed that the most important failure factor of these cooperatives is the lack of the participation culture of cooperative members and then the performance of Central Organization Rural Cooperatives, and also loss of confidence of the members in the cooperation.

Keywords: cooperative, rural cooperatives, failure factors, analytical hierarchy process

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Authors: Ronal Muresano, Andrea Pagano

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Nowadays, the mathematical/statistical applications are developed with more complexity and accuracy. However, these precisions and complexities have brought as result that applications need more computational power in order to be executed faster. In this sense, the multicore environments are playing an important role to improve and to optimize the execution time of these applications. These environments allow us the inclusion of more parallelism inside the node. However, to take advantage of this parallelism is not an easy task, because we have to deal with some problems such as: cores communications, data locality, memory sizes (cache and RAM), synchronizations, data dependencies on the model, etc. These issues are becoming more important when we wish to improve the application’s performance and scalability. Hence, this paper describes an optimization method developed for Systemic Model of Banking Originated Losses (SYMBOL) tool developed by the European Commission, which is based on analyzing the application's weakness in order to exploit the advantages of the multicore. All these improvements are done in an automatic and transparent manner with the aim of improving the performance metrics of our tool. Finally, experimental evaluations show the effectiveness of our new optimized version, in which we have achieved a considerable improvement on the execution time. The time has been reduced around 96% for the best case tested, between the original serial version and the automatic parallel version.

Keywords: algorithm optimization, bank failures, OpenMP, parallel techniques, statistical tool

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Authors: Nazanin Pilevari, Kamyar Mahmoodi

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The purpose of this research is to provide a model based on fuzzy inference system for evaluating empowerment of Knowledge management. The first prototype of the research was developed based on the study of literature. In the next step, experts were provided with these models and after implementing consensus-based reform, the views of Fuzzy Delphi experts and techniques, components and Index research model were finalized. Culture, structure, IT and leadership were considered as dimensions of empowerment. Then, In order to collect and extract data for fuzzy inference system based on knowledge and Experience, the experts were interviewed. The values obtained from designed fuzzy inference system, made review and assessment of the organization's empowerment of Knowledge management possible. After the design and validation of systems to measure indexes ,empowerment of Knowledge management and inputs into fuzzy inference) in the AYANDEH Bank, a questionnaire was used. In the case of this bank, the system output indicates that the status of empowerment of Knowledge management, culture, organizational structure and leadership are at the moderate level and information technology empowerment are relatively high. Based on these results, the status of knowledge management empowerment in AYANDE Bank, was moderate. Eventually, some suggestions for improving the current situation of banks were provided. According to studies of research history, the use of powerful tools in Fuzzy Inference System for assessment of Knowledge management and knowledge management empowerment such an assessment in the field of banking, are the innovation of this Research.

Keywords: knowledge management, knowledge management empowerment, fuzzy inference system, fuzzy Delphi

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Authors: Breno M. Castilho

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The Iron Ore Quadrangle, located in the state of Minas Gerais, Brazil is responsible for most of the country’s iron ore production. As a result, some of the biggest tailings dams in the country are located in this area. In recent years, several major failure events have happened in Tailings Storage Facilities (TSF) located in the Iron Ore Quadrangle. Some of these failures were found to be caused by liquefaction flowslides. This paper presents Piezocone Penetration Test (CPTu) data that was used, by applying Olson and Peterson methods, for the liquefaction susceptibility assessment of the iron ore tailings that are typically found in most TSF in the area. Piezocone data was also used to determine the steady-state strength of the tailings so as to allow for comparison with its drained strength. Results have shown great susceptibility for liquefaction to occur in the studied tailings and, more importantly, a large reduction in its strength. These results are key to understanding the failures that took place over the last few years.

Keywords: Piezocone Penetration Test CPTu, iron ore tailings, mining, liquefaction susceptibility assessment

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Authors: Carla Lopes

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It is clear nowadays that the proper performance of different speech acts is one of the most difficult obstacles that a foreign language learner has to overcome to be considered communicatively competent. This communication presents the results of an investigation on the pragmatic performance of Portuguese Language students at the University of Macau. The research discussed herein is based on a survey consisting of fourteen speaking situations to which the participants must respond in writing, and that includes different types of speech acts: apology, response to a compliment, refusal, complaint, disagreement and the understanding of the illocutionary force of indirect speech acts. The responses were classified in a five levels Likert scale (quantified from 1 to 5) according to their suitability for the particular situation. In general terms, we can summarize that about 45% of the respondents' answers were pragmatically competent, 10 % were acceptable and 45 % showed weaknesses at socio-pragmatic competence level. Given that the linguistic deviations were not taken into account, we can conclude that the faults are of cultural origin. It is natural that in the presence of orthogonal cultures, such as Chinese and Portuguese, there are failures of this type, barely solved in the four years of the undergraduate program. The target population, native speakers of Cantonese or Mandarin, make their first contact with the English language before joining the Bachelor of Portuguese Language. An analysis of the socio - pragmatic failures in the respondents’ answers suggests the conclusion that many of them are due to the lack of cultural knowledge. They try to compensate for this either using their native culture or resorting to a Western culture that they consider close to the Portuguese, that is the English or US culture, previously studied, and also widely present in the media and on the internet. This phenomenon, known as 'pragmatic transfer', can result in a linguistic behavior that may be considered inauthentic or pragmatically awkward. The resulting speech act is grammatically correct but is not pragmatically feasible, since it is not suitable to the culture of the target language, either because it does not exist or because the conditions of its use are in fact different. Analysis of the responses also supports the conclusion that these students present large deviations from the expected and stereotyped behavior of Chinese students. We can speculate while this linguistic behavior is the consequence of the Macao globalization that culturally casts the students, makes them more open, and distinguishes them from the typical Chinese students.

Keywords: Portuguese foreign language, pragmatic failures, pragmatic transfer, pragmatic competence

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Authors: Tan Swee Liang

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This paper studies the two-way relationship between fintech credit and banking efficiency using the Generalized panel Method of Moment (GMM) estimation in structural equation modeling (SEM). Banking system efficiency, defined as its ability to produce the existing level of outputs with minimal inputs, is measured using input-oriented data envelopment analysis (DEA), where the whole banking system of an economy is treated as a single DMU. Banks are considered an intermediary between depositors and borrowers, utilizing inputs (deposits and overhead costs) to provide outputs (increase credits to the private sector and its earnings). Analysis of the interrelationship between fintech credit and bank efficiency is conducted to determine the impact in different country groupings (ASEAN, Asia and OECD), in particular the banking system response to fintech credit platforms. Our preliminary results show that banks do respond to the greater pressure caused by fintech platforms to enhance their efficiency, but differently across the different groups. The author’s earlier research on ASEAN-5 high bank overhead costs (as a share of total assets) as the determinant of economic growth suggests that expenses may not have been channeled efficiently to income-generating activities. One practical implication of the findings is that policymakers should enable alternative financing, such as fintech credit, as a warning or encouragement for banks to improve their efficiency.

Keywords: fintech lending, banking efficiency, data envelopment analysis, structural equation modeling

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Authors: Y. Fandja, O. Colot, M. Croquet

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Small and medium-sized firms (SMEs) face difficulties in accessing bank credit. Bank credit is actually the main source of external financing for SMEs. In general, SMEs are risky businesses because of the potential opacity maintained by the leader in the management of affairs, the agency conflicts between business owners and third-party funders and the potential opportunism of the leader due to the incompleteness of the contracts. These elements accentuate the problems of information asymmetries between SMEs and bankers leading to capital rationing. Moreover, the last economic crisis reinforced this rationing of capital. However, a long-term relationship between SMEs and their bank would enable the latter to accumulate a set of relevant information allowing the reduction of information asymmetry and, consequently, the reduction of credit rationing. The objective of this research is to investigate the lived experience of SMEs loan officers in their relationships with their clients in order to understand how these relationships can affect the financing structure of these SMEs. To carry out this research, an Interpretative Phenomenological Analysis is implemented. This approach is part of the constructivist paradigm and refers to the subjective narratives of the individual rather than to an objective description of the facts. The role of the researcher is to explore the lived experience of the interviewees and to try to understand the meaning they give to this experience. Currently, several sixty-minute semi-structured interviews with loan officers for SMEs have been conducted. The analysis of the content of these interviews brought out three main themes. First, the relationship between the credit officer and the company manager is complex because the credit officer is not aware of establishing a personal relationship with his client. Second; the emotional involvement in the bank financing decision is present and third, the trust in the relationship between the credit officer and his client is very important. The originality of this research is to use the interpretative phenomenological analysis more specific to psychology and sociology in order to approach in a different way the problem of the financing of SMEs through their particular relations with the bankers.

Keywords: financing structure, interpretative phenomenological analysis, relationship financing, SME

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Authors: Qasim Zafar, Matthew Anderson, Esteban Garcia, Steven Drager

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Software failures can present an enormous detriment to people's lives and cost millions of dollars to repair when they are unexpectedly encountered in the wild. Despite a significant portion of the software development lifecycle and resources are dedicated to testing, software failures are a relatively frequent occurrence. Nevertheless, the evaluation of testing effectiveness remains at the forefront of ensuring high-quality software and software metrics play a critical role in providing valuable insights into quantifiable objectives to assess the level of assurance and confidence in the system. As the selection of appropriate metrics can be an arduous process, the goal of this paper is to shed light on the significance of software metrics by examining a range of testing techniques and metrics as well as identifying key areas for improvement. Additionally, through this investigation, readers will gain a deeper understanding of how metrics can help to drive informed decision-making on delivering high-quality software and facilitate continuous improvement in testing practices.

Keywords: software testing, software metrics, testing effectiveness, black box testing, random testing, adaptive random testing, combinatorial testing, fuzz testing, equivalence partition, boundary value analysis, white box testing

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Authors: Michelo Obrey

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Traditionally, mutual funds have long been esteemed as stand-alone entities in the U.S. However, the prevalence of the fund families’ affiliation to financial conglomerates is eroding this striking feature. Mutual fund families' affiliation with financial conglomerates can potentially be an important source of superior performance or cost to the affiliated mutual fund investors. On the one hand, financial conglomerates affiliation offers the mutual funds access to abundant resources, better research quality, private material information, and business connections within the financial group. On the other hand, conflict of interest is bound to arise between the financial conglomerate relationship and fund management. Using a sample of U.S. domestic equity mutual funds from 1994 to 2017, this paper examines whether fund family affiliation to an investment bank help the affiliated mutual funds deliver superior performance through private material information advantage possessed by the investment banks or it costs affiliated mutual fund shareholders due to the conflict of interest. Robust to alternative risk adjustments and cross-section regression methodologies, this paper finds that the investment bank-affiliated mutual funds significantly outperform those of the mutual funds that are not affiliated with an investment bank. Interestingly the paper finds that the outperformance is confined to holding return, a return measure that captures the investment talent that is uninfluenced by transaction costs, fees, and other expenses. Further analysis shows that the investment bank-affiliated mutual funds specialize in hard-to-value stocks, which are not more likely to be held by unaffiliated funds. Consistent with the information advantage hypothesis, the paper finds that affiliated funds holding covered stocks outperform affiliated funds without covered stocks lending no support to the hypothesis that affiliated mutual funds attract superior stock-picking talent. Overall, the paper findings are consistent with the idea that investment banks maximize fee income by monopolistically exploiting their private information, thus strategically transferring performance to their affiliated mutual funds. This paper contributes to the extant literature on the agency problem in mutual fund families. It adds to this stream of research by showing that the agency problem is not only prevalent in fund families but also in financial organizations such as investment banks that have affiliated mutual fund families. The results show evidence of exploitation of synergies such as private material information sharing that benefit mutual fund investors due to affiliation with a financial conglomerate. However, this research has a normative dimension, allowing such incestuous behavior of insider trading and exploitation of superior information not only negatively affect the unaffiliated fund investors but also led to an unfair and unleveled playing field in the financial market.

Keywords: mutual fund performance, conflicts of interest, informational advantage, investment bank

Procedia PDF Downloads 154

Authors: Md. Akiz Uddin

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This research attempted to identify the determining factors that extensively persuaded customers of the First Security Islamic Bank Limited (FSIBL) to open accounts and their perception and satisfaction level towards it. Initially, a theoretical model was established based on existing literature reviews. After that, a self-administered structured questionnaire was developed, and data were collected from 180 customers of the FSIBL of Bangladesh using purposive sampling technique. The collected data were later analyzed through a statistical software. Structural Equation Modelling (SEM) was used to verify the model of the study and test the hypotheses. The study particularly examined the determinants of opening accounts, customers’ perception and their satisfaction level towards the bank on several factors like the bank’s compliance with Shariah law, use of modern technology, assurance, reliability, empathy, profitability, and responsiveness. To examine the impact of religious belief on being FSIBL clients, the study also investigates non-Muslim clients’ perception about FSIBL. The study focused on FSIBL customers only from five branches of Dhaka city. The study found that the religious beliefs is the most significant factors for Muslim customers for considering FSIBL to open an account, and they are satisfied with the services, too. However, for non-Muslim customers, other benefits like E-banking, various user-friendly services are the most significant factors for choosing FSIBL. Their satisfaction level is also statistically significant. Furthermore, even if the non- Muslim customers didn’t consider religious beliefs as determinant factors for choosing FSIBL, the respondents informed that they have trust that people who believe in shariah law are more reliable to keep money with them. These findings open up the avenue for future researchers to conduct more study in this area through employing a larger sample size and more branches and extending the current model by incorporating new variables. The study will be an important addition to the potentials of Islamic banking system, literature of service quality and customer satisfaction level, particularly in the success of Islamic banking system in Bangladesh.

Keywords: islamic banking, customers’ satisfaction, customers’ perception, shariah law

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Authors: Louati Salma, Louhichi Awatef, Boujelbene Younes

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Analysis of the trade-off between competition and financial stability has been at the center of academic and policy debate for over two decades and especially since the 2007-2008 global financial crises. We use information on 10 OIC countries from 2005 to 2014 to investigate the influence of bank competition on individual bank stability and risk-taking. Alternatively, we explore whether the quality of prudential regulation may affect the nexus between competition and banking stability/risk-taking. We provide a particular attention to the Islamic banking system which principally involves with the Riba-free instruments as compared to the conventional interest-based system. We first run a dynamic panel regression (GMM), and then we apply a panel vector autoregressive (PVAR) methodology to compare both banking business models.

Keywords: Lerner index, Islamic banks, non-performing loans, prudential regulations, z-score

Procedia PDF Downloads 267

Authors: Camille Paldi

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The tense dichotomy between Shari’ah compliance and the economic goals of an Islamic Bank produces a proliferation of reverse engineered products, which are barely in compliance with Islamic law. The result is basically a hybrid conventional banking system with conventional products in Islamic disguise using Arabic and Islamic terminology. Many Islamic financial professionals and academics advocate for the use of conventional products and devices despite their non-Shari’ah compliance based on commercial necessity and the need to compete. However, this dangerous trend will lead to the demise of the Islamic finance industry. Rather than thoughtlessly following conventional products and practice, Islamic finance professionals should delve into the Shari’ah to find the answers to the current Islamic banking conundrum and lead the industry on the right path of developing Shari’ah based products and using Shari’ah devices to hedge risk.

Keywords: Islamic banking, Shari'ah, finance, investment

Procedia PDF Downloads 323

Authors: T. Prabakaran

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Gas Insulated Substations (GIS) are widely used as important switchgear equipment because of its high reliability, low space requirement, low risk factor and easy maintenance, yet some failures have been reported. Some of the failures are due to presence of metallic particles inside the GIS compartment. The defect can be generated in GIS during production, maintenance, installation and can be due to ageing of the component. The Ultra-High Frequency (UHF) method is used to diagnose the insulation condition of GIS by detecting the PD signals in GIS. This paper identifies PD patterns for free moving particle defect and particle fixed on cone using UHF method. As insulation failure usually starts with PD activity, this paper investigates the differences in PD characteristics in SF6 gas with different types of defects. Experimental results show that correct identification of defects can be achieved based on considered PD characteristics. The method can be applied to prove the quality of assembly work at commissioning, also on a regular basis after many years in service to detect aged and conducting particles as a part of the condition based maintenance.

Keywords: gas insulated substation, partial discharge, free moving particle defect, particle fixed on cone defect, ultra high frequency method

Procedia PDF Downloads 207

Authors: Md. Awal Hossain Mollah

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Corporate governance is playing a crucial role for ensuring social accountability and responsibility of business organization through Corporate Social Responsibility (CSR) for the last two decades. In Bangladesh, CSR is a growing and popular concept and a recent development. Various business and corporate organizations are playing crucial role for helping vulnerable sections of our society now. For instance, Dutch Bangla Bank has been providing scholarship for under graduate and graduate students in our country which is very helpful for promoting poor and meritorious students in Bangladesh. In this study, how far CSR is playing its role for ensuring human right in Bangladesh will be examined with specific case studies. The study focus will reflect on both developed and developing nations based on literature review and possible empirical evidence.

Keywords: CSR, corporate governance, social security, Bangladesh, scholarships, graduate students, Dutch angla Bank

Procedia PDF Downloads 335