Search results for: Banking crises

Authors: Arnisa Lushaj, Arvjen Lushaj, Sunitha N. Seenappa, Georgia Butina-Watson, Bashkim Lushaj, Vera Malsia, Dodë Doçi, Mercedes Hunt, Ervin Buçpapaj

Abstract:

Tourism and coastal lines are the business sectors since centuries especially in the European Nations and Albania is one such spots. However, in recent decades tourism is experienced as vulnerability of the surrounding ecological conditions of air, soil, water, land and the communities that are dependant and sharing the ecosystem among flora and fauna. Experts opine that apart from the maintenance of near-originality of ecological biodiversity the tourism rather known as ecotourism an indigenous socio-cultural maintenance of indigenous/traditional knowledge of the local people must be well cared in order to sustain on sustainable grounds. As a general tendency, growth of tourism has been affected by the deterioration in the economic conditions on one aspect and unsustainable ecological areas affected since human interventions earlier to this has negative impact on futuristic tourist spots. However, tourism in Albania as of now is 11% of GDP and coastal regions accounting to 2-4%. An amicable Mediterranean climate with 300 sunny days similar parameters of Greece and Spain throws up sustainable ecotourism in future decades provided public services namely, transportation, road safety, lodging, food availability, recreational regiments, banking accessibility are as per the World Tourism Organizations- protocols. Thus as of Albanian situation, classification of ecotourism activities to safe-guard the localities with its maintenance of ecological land, water and climate has become a paramount importance with a wanting and satisfactory options through harnessing human energy for profit and fitness of ecological flora and fauna. A check on anthropogenic wastes and their safer utilizations inclusive of agricultural and industrial operations in line with Lalzi Bay Coastal Line are of utmost importance for the reason that the Adriatic Sea Coast is the one long stretch of Albanian Lifeline. The present work is based on the methodology of the sustainable management of the same issue.

Keywords: Albania, ecotourism, Lalzi Bay, sustainability.

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Authors: I. Lucas, N. Schomberg, F-A. Couturier

Abstract:

Most empirical studies have analyzed how liquidity risks faced by individual institutions turn into systemic risk. Recent banking crisis has highlighted the importance of grasping and controlling the systemic risk, and the acceptance by Central Banks to ease their monetary policies for saving default or illiquid banks. This last point shows that banks would pay less attention to liquidity risk which, in turn, can become a new important channel of loss. The financial regulation focuses on the most important and “systemic” banks in the global network. However, to quantify the expected loss associated with liquidity risk, it is worth to analyze sensitivity to this channel for the various elements of the global bank network. A small bank is not considered as potentially systemic; however the interaction of small banks all together can become a systemic element. This paper analyzes the impact of medium and small banks interaction on a set of banks which is considered as the core of the network. The proposed method uses the structure of agent-based model in a two-class environment. In first class, the data from actual balance sheets of 22 large and systemic banks (such as BNP Paribas or Barclays) are collected. In second one, to model a network as closely as possible to actual interbank market, 578 fictitious banks smaller than the ones belonging to first class have been split into two groups of small and medium ones. All banks are active on the European interbank network and have deposit and market activity. A simulation of 12 three month periods representing a midterm time interval three years is projected. In each period, there is a set of behavioral descriptions: repayment of matured loans, liquidation of deposits, income from securities, collection of new deposits, new demands of credit, and securities sale. The last two actions are part of refunding process developed in this paper. To strengthen reliability of proposed model, random parameters dynamics are managed with stochastic equations as rates the variations of which are generated by Vasicek model. The Central Bank is considered as the lender of last resort which allows banks to borrow at REPO rate and some ejection conditions of banks from the system are introduced.

Liquidity crunch due to exogenous crisis is simulated in the first class and the loss impact on other bank classes is analyzed though aggregate values representing the aggregate of loans and/or the aggregate of borrowing between classes. It is mainly shown that the three groups of European interbank network do not have the same response, and that intermediate banks are the most sensitive to liquidity risk.

Keywords: Systemic Risk, Financial Contagion, Liquidity Risk, Interbank Market, Network Model.

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Authors: S. Mahdi Sadatmansouri, Maryam Khalili

Abstract:

World, nowadays, encounters serious water scarcity problem. During the past few years, by advent of Smart Energy and Water Meter (SEWM) and its installation at the electro-pumps of the water wells, one had believed that it could be the golden key to address the groundwater resources over-pumping issue. In fact, implementation of these Smart Meters managed to control the water table drawdown for short; but it was not a sustainable approach. SEWM has been considered as law enforcement facility at first; however, for solving a complex socioeconomic problem like shared groundwater resources management, more than just enforcement is required: participation to conserve common resources. The well owners or farmers, as water consumers, are the main and direct stakeholders of this system and other stakeholders could be government sectors, investors, technology providers, privet sectors or ordinary people. Designing a socio-technical system not only defines the role of each stakeholder but also can lubricate the communication to reach the system goals while benefits of each are considered and provided. Farmers, as the key participators for solving groundwater problem, do not trust governments but they would trust a fair system in which responsibilities, privileges and benefits are clear. Technology could help this system remained impartial and productive. Social aspects provide rules, regulations, social objects and etc. for the system and help it to be more human-centered. As the design methodology, Design Thinking provides probable solutions for the challenging problems and ongoing conflicts; it could enlighten the way in which the final system could be designed. Using Human Centered Design approach of IDEO helps to keep farmers in the center of the solution and provides a vision by which stakeholders’ requirements and needs are addressed effectively. Farmers would be considered to trust the system and participate in their groundwater resources management if they find the rules and tools of the system fair and effective. Besides, implementation of the socio-technical system could change farmers’ behavior in order that they concern more about their valuable shared water resources as well as their farm profit. This socio-technical system contains nine main subsystems: 1) Measurement and Monitoring system, 2) Legislation and Governmental system, 3) Information Sharing system, 4) Knowledge based NGOs, 5) Integrated Farm Management system (using IoT), 6) Water Market and Water Banking system, 7) Gamification, 8) Agribusiness ecosystem, 9) Investment system.

Keywords: Design Thinking, Human Centered Design, participatory management, Smart Energy and Water Meter (SEWM), socio-technical system, water table drawdown, Internet of Things, Gamification

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