International Framework for Liquidity Risk Measurement,Standards and Monitoring:Corporate Governance and Internal Controls

This paper is structured in accordance with identified components which are considered to be essential to the successful implementation of the (two fold) topics of discussion of this paper, namely, monitoring and liquidity risk measurements. The importance of successfully communicating results obtained from monitoring and measuring such risks, and the role of corporate governance in ensuring such effective communication, constitutes a recurring theme throughout this paper. The identified components are as follows: i) Corporate governance (ii) Internal controls (iii) Disclosure (iv) Management of risk (v) Substance over form (vi) Transparency As well as highlighting the interdependence of these components, the paper also aims to accentuate the importance of individual components. Whilst no hierarchy of importance is assigned to these components, corporate governance and internal controls are two components which are analysed in greater depth (than other components). Furthermore, corporate governance could be accorded a status of greater importance than internal controls having regard to the fact that whilst internal controls relate to a very vital control aspect of an organisation, corporate governance relates to all processes – be it decision making, control, production, performance, within a company/bank. The paper will also attempt to demonstrate that it is possible to implement a system of regulation which combines increased formalised procedures and/or detailed rules - whilst giving due consideration to the substance of transaction

Analysis and Verification of Service Interaction Protocols - A Brief Survey

Modeling and analysis of interactions among services is a crucial issue in Service-Oriented Computing. Composing Web services is a complicated task which requires techniques and tools to verify that the new system will behave correctly. In this paper, we first overview some formal models proposed in the literature to describe services. Second, we give a brief survey of verification techniques that can be used to analyse services and their interaction. Last, we focus on the realizability and conformance of choreographies.Comment: In Proceedings TAV-WEB 2010, arXiv:1009.330

A counter-cyclical framework for a development-friendly international financial architecture

The major task of a development-friendly international financial architecture is to mitigate pro-cyclical effects of financial markets and open “policy space” for counter-cyclical macroeconomic policies in the developing world. This paper explores a series of policy instruments for this purpose: counter-cyclical prudential regulatory and supervisory frameworks; market mechanisms that better distribute the risk faced by developing countries through the business cycle; multilateral instruments that encourage more stable private flows; and better provision of counter-cyclical official liquidity. It also suggests that regional macroeconomic consultation, and common reserve funds or swap arrangements among developing countries can play a role in this regard.volatility, contagion, financial crises, counter-cyclical macroeconomic policies, counter­cyclical prudential regulation, GDP-indexed and local currency bonds, regional macroeconomic cooperation.

Innovation and skill dynamics: a life - cycle approach

This paper focuses on the complementary institutional and organizational adjustments that facilitate the routinization of technological opportunities. To address this issue we propose a life-cycle approach that accounts for the emergence, development and transformation of the conduits for the transmission of new knowledge and skills. While it is widely held that knowledge tends to get more organized as by-product of innovation, the purposeful absorption of practical know-how into formal education is another crucial, and arguably less analysed, intermediate step to bridge the beginning of the life-cycle, when new skills are closely tied to some novel technology, to later phases when the emergence of new disciplines and the diffusion of those skills elicit complementary developments in the technology. The paper connects themes that are central to the tangled policy discourse on skills impact innovation, namely: the institutional adjustments required to favour the re-absorption of skill mismatches; the systematization of knowledge underpinning the creation of new academic disciplines; and implications for dynamics of productivity and of the wage structure.

International framework for liquidity risk measurement, standards and monitoring: corporate governance and internal controls

This paper is structured in accordance with identified components which are considered to be essential to the successful implementation of the (two fold) topics of discussion of this paper, namely, monitoring and liquidity risk measurements. The importance of successfully communicating results obtained from monitoring and measuring such risks, and the role of corporate governance in ensuring such effective communication, constitutes a recurring theme throughout this paper. The identified components are as follows: i) Corporate governance (ii) Internal controls (iii) Disclosure (iv) Management of risk (v) Substance over form (vi) Transparency As well as highlighting the interdependence of these components, the paper also aims to accentuate the importance of individual components. Whilst no hierarchy of importance is assigned to these components, corporate governance and internal controls are two components which are analysed in greater depth (than other components). Furthermore, corporate governance could be accorded a status of greater importance than internal controls having regard to the fact that whilst internal controls relate to a very vital control aspect of an organisation, corporate governance relates to all processes – be it decision making, control, production, performance, within a company/bank. The paper will also attempt to demonstrate that it is possible to implement a system of regulation which combines increased formalised procedures and/or detailed rules - whilst giving due consideration to the substance of transactions.corporate governance; internal controls; monitoring; liquidity; regulation

Capital-Account and Counter-Cyclical Prudential Regulations in Developing Countries

cycles, capital flows, prudential regulation, counter-cyclical policies

BASEL III: responses to consultative documents, vital aspects of the consultative processes and the journey culminating in the present framework (Part 1)

This paper is aimed at providing a comprehensive overview of, and responses to, four very vital components of the consultative processes which have contributed to the new framework known as Basel III. The paper will approach these components in the order of the consultative processes, namely, the capital proposals, the liquidity proposals and the Proposal to ensure the loss absorbency of regulatory capital at the point of non-viability. The capital proposals comprise proposals aimed at strengthening the resilience of the banking sector, the proposal relating to international framework for liquidity risk measurement, standards and monitoring and, the countercyclical capital buffer proposal. Whilst the capital proposals have been welcomed, there has been growing realisation since the aftermath of the recent Financial Crises that banks which have been complying with capital adequacy requirements could still face severe liquidity problems. As well as highlighting the importance of introducing counter cyclical capital buffers, the response to the countercyclical proposal draws attention to the need for greater focus on more forward looking provisions, as well as provisions which are aimed at addressing losses and unforeseen problems attributed to “maturity transformation of short-term deposits into long term loans.” The Basel Committee’s consultative document on the “Proposal to Ensure the Loss Absorbency of Regulatory Capital at the Point of Non Viability” sets out a proposal aimed at “enhancing the entry criteria of regulatory capital to ensure that all regulatory capital instruments issued by banks are capable of absorbing losses in the event that a bank is unable to support itself in the private market.” Amongst other issues addressed, the response to the consultative document highlights why the controlled winding down procedure also constitutes a means whereby losses could still be absorbed in the event that a bank is unable to support itself in the private market.Counter cyclical buffers; liquidity risks; pro cyclicality; loan loss provisions; financial crises; bank; regulation; capital; insolvency; financial crises; moral hazard; Basel III

Coming Full Circle with Boyd\u27s OODA Loop Ideas: An Analysis of Innovation Diffusion and Evolution

The Observe-Orient-Decide-Act (OODA) Loop ideas of Air Force Colonel John Boyd have impacted the Department of Defense (DoD), influenced military thought, paved the way for operational change, and helped to shape fighting doctrines. A wide variety of OODA Loop ideas and interpretations exist in the literature, but are unorganized and have not undergone holistic study to determine how Boyd\u27s ideas have spread or changed over time. As such, this research analyzed a quarter century (1976-2003) sample of the OODA Loop literature to examine the diffusion and evolution of OODA Loop ideas since Boyd\u27s original conceptualizations. This research used qualitative data analysis to examine OODA Loop ideas in light of innovation diffusion theory. Ideas from Boyd\u27s original OODA Loop theories were compared and contrasted with subsequent literature instances to assess diffusion and evolution of OODA Loop ideas in the DoD. This research concluded with a proposed conceptual framework for collectively considering OODA Loop ideas

A Broad View of Macroeconomic Stability

This paper recommends a broad concept of macroeconomic stability, whereby “sound macroeconomic frameworks” include not only price stability and sound fiscal policies, but also a well-functioning real economy, sustainable debt ratios and healthy public and private sector balance sheets. These multiple dimensions imply using multiple policy instruments. The paper elaborates a framework for developing countries that involves active use of counter-cyclical macroeconomic policies (exchange rate, monetary and fiscal), together with capital management techniques (capital account regulations and prudential rules incorporating macroeconomic dimensions). It also explores the role of international financial institutions in facilitating developing countries’ use of counter-cyclical macroeconomic policies.macroeconomic stability, capital account volatility, counter-cyclical macroeconomic policies, capital management techniques, capital account regulations.