Financial-distress prediction of Islamic banks using tree-based stochastic techniques

Purpose Financial distress is a socially and economically important problem that affects companies the world over. Having the power to better understand – and hence aid businesses from failing, has the potential to save not only the company, but also potentially prevent economies from sustained downturn. Although Islamic banks constitute a fraction of total banking assets, their importance have been substantially increasing, as their asset growth rate has surpassed that of conventional banks in recent years. The paper aims to discuss these issues. Design/methodology/approach This paper uses a data set comprising 101 international publicly listed Islamic banks to work on advancing financial distress prediction (FDP) by utilising cutting-edge stochastic models, namely decision trees, stochastic gradient boosting and random forests. The most important variables pertaining to forecasting corporate failure are determined from an initial set of 18 variables. Findings The results indicate that the “Working Capital/Total Assets” ratio is the most crucial variable relating to forecasting financial distress using both the traditional “Altman Z-Score” and the “Altman Z-Score for Service Firms” methods. However, using the “Standardised Profits” method, the “Return on Revenue” ratio was found to be the most important variable. This provides empirical evidence to support the recommendations made by Basel Accords for assessing a bank’s capital risks, specifically in relation to the application to Islamic banking. Originality/value These findings provide a valuable addition to the limited literature surrounding Islamic banking in general, and FDP pertaining to Islamic banking in particular, by showcasing the most pertinent variables in forecasting financial distress so that appropriate proactive actions can be taken. </jats:sec

FAM129B, an antioxidative protein, reduces chemosensitivity by competing with Nrf2 for Keap1 binding.

BackgroundThe transcription factor Nrf2 is a master regulator of antioxidant response. While Nrf2 activation may counter increasing oxidative stress in aging, its activation in cancer can promote cancer progression and metastasis, and confer resistance to chemotherapy and radiotherapy. Thus, Nrf2 has been considered as a key pharmacological target. Unfortunately, there are no specific Nrf2 inhibitors for therapeutic application. Moreover, high Nrf2 activity in many tumors without Keap1 or Nrf2 mutations suggests that alternative mechanisms of Nrf2 regulation exist.MethodsInteraction of FAM129B with Keap1 is demonstrated by immunofluorescence, colocalization, co-immunoprecipitation and mammalian two-hybrid assay. Antioxidative function of FAM129B is analyzed by measuring ROS levels with DCF/flow cytometry, Nrf2 activation using luciferase reporter assay and determination of downstream gene expression by qPCR and wester blotting. Impact of FAM129B on in vivo chemosensitivity is examined in mice bearing breast and colon cancer xenografts. The clinical relevance of FAM129B is assessed by qPCR in breast cancer samples and data mining of publicly available databases.FindingsWe have demonstrated that FAM129B in cancer promotes Nrf2 activity by reducing its ubiquitination through competition with Nrf2 for Keap1 binding via its DLG and ETGE motifs. In addition, FAM129B reduces chemosensitivity by augmenting Nrf2 antioxidative signaling and confers poor prognosis in breast and lung cancer.InterpretationThese findings demonstrate the important role of FAM129B in Nrf2 activation and antioxidative response, and identify FMA129B as a potential therapeutic target. FUND: The Chang Gung Medical Foundation (Taiwan) and the Ministry of Science and Technology (Taiwan)

The Remittances Framework in Lesotho: Assessment of Policies and Programmes Promoting the Multiplier Effect

This study explored policies and programmes aimed at facilitating remittances inflows through formal channels and leveraging remittances for development in Lesotho. The study also looked into regulations and laws on remittances. In order to answer key questions of this study, semi‐structured questionnaires were administered to 29 institutions, including commercial banks, an asset manager, insurance companies, telecommunication companies, government ministries, parastatals, a research institution, a retailer, a savings and credit cooperative and non-governmental organizations. The gaps revealed by this study can be summarised as: the Deferred Pay Act is the only policy driving officially recorded remittance inflows to Lesotho and which facilitated the creation of remittances‐linked savings product by the banking sector; there are restrictions on remittance outflows for immigrants working in the country, though planned to be eliminated; most of remittances transfer products offered by various institutions suit regular income earners with bank accounts, the adoption of mobile‐phone based transfers adoption is low and the mobile‐phone based transfer products cannot be used to make international transfers; there is lack of adoption of remittances‐linked financial products by financial intermediaries and relevant government ministries; the benefits packaged with the remittances‐ linked savings accounts are less attractive; and most of the remittances services providers are concentrated in urban centres. These findings show there is a need to develop policies and programmes for harnessing remittances for development. This study concluded by suggesting policy options for facilitating remittances inflows through regular channels and promoting positive impact of remittances on development

Considerations regarding the agile development of portals

Starting with methodologies, methods and techniques used generally in the development of information systems, a personal approach regarding quick development of portals has been introduced. After a strict theoretical foundation the proposal has been applied within a real collaborative knowledge portal development project. We consider the proposed agile development approach (based on the prototype technique enriched with MDA valences) suitable to all kind of information systems. The agile development framework establishes the life-cycle phases of product development taking into account the desired functionalities.portal, prototype technique, model driven architecture, agile development