Capital Requirements for Latin American Banks in Relation to their Market Risks: The Relevance of the Basle 1996 Amendment to Latin America

Banks` market or `trading` risks have increased noticeably over the past years, largely as a result of the growth of liquid assets on banks` balance sheets and the increase in banks` off-balance sheet activities. Well-publicized bank failures and significant capital losses have focussed further attention on these developments. In January 1996, the Basle Committee recommended the imposition of capital charges related to banks` trading risks, and the European Community`s Capital Adequacy Directive (CAD) came into force on January 1st, adopting, in part, the Basle Amendment. The G10 countries are committed to full implementation of these recommendations by the end of 1997. This paper reviews the main features of the Basle Amendment, which allows banks a choice between a `standardized methodology` and the use of their own internal models, subject to the authorization of the relevant supervisor and a set of parameter values. The relevance of this regulation for Latin America is analysed in the light of the region`s characteristics. We suggest that these characteristics increase rather than diminish the importance of the implementation of market risk capital requirements in Latin America.

Pairing in the Hubbard model: the Cu_{5}O_{4} Cluster versus the Cu-O plane

We study the Cu_{5}O_{4} cluster by exact diagonalization of a three-band Hubbard model and show that bound electron or hole pairs are obtained at appropriate fillings, and produce superconducting flux quantisation. The results extend earlier cluster studies and illustrate a canonical transformation approach to pairing that we have developed recently for the full plane. The quasiparticles that in the many-body problem behave like Cooper pairs are W=0 pairs, that is, two-hole eigenstates of the Hubbard Hamiltonian with vanishing on-site repulsion. The cluster allows W=0 pairs of d symmetry, due to a spin fluctuation, and s symmetry, due to a charge fluctuation. Flux quantisation is shown to be a manifestation of symmetry properties that hold for clusters of arbitrary size.Comment: 13 pages, 3 figures, a few intermediate steps added for clarit

Ripple-to-dome transition: the growth evolution of Ge on vicinal Si(1 1 10) surface

We present a detailed scanning tunnelling microscopy study which describes the morphological transition from ripple to dome islands during the growth of Ge on the vicinal Si(1 1 10) surface . Our experimental results show that the shape evolution of Ge islands on this surface is markedly different from that on the flat Si(001) substrate and is accomplished by agglomeration and coalescence of several ripples. By combining first principle calculations with continuum elasticity theory, we provide an accurate explanation of our experimental observations

Reforming Capital Requirements in Emerging Countries: Calibrating Basel II using Historical Argentine Credit Bureau Data and CreditRisk+

Emerging economies are likely to be more volatile and asset risk more correlated than in industrialized countries. In this paper we discuss how credit scoring techniques and modern credit risk portfolio models can be used to measure credit risk and check Basel II calibration for such an environment. After reviewing the development of credit risk portfolio models, to explain our choice in using CreditRisk+, we discuss the definition and estimation methodology for a set of essential parameter inputs, which in turn depend on the data available - in this case from the Argentine public credit bureau. We then simulate, bank by bank, the introduction of Basel II's foundation IRB approach using the same data for Argentina and compare the results. We analyze how the IRB approach might be recalibrated and finally discuss a set of other issues regarding IRB implementation in an emerging economy.

Enhancing the use of Haptic Devices in Education and Entertainment

This research was part of the two-years Horizon 2020 European Project "weDRAW". The aim of the project was that "specific sensory systems have specific roles to learn specific concepts". This work explores the use of the haptic modality, stimulated by the means of force-feedback devices, to convey abstract concepts inside virtual reality. After a review of the current use of haptic devices in education, available haptic software and game engines, we focus on the implementation of an haptic plugin for game engines (HPGE, based on state of the art rendering library CHAI3D) and its evaluation in human perception experiments and multisensory integration

Evolution of self-assembled InAs/Gas(001) quantum dots grown by growth-interrupted molecular beam epitaxy

Self-assembled InAs quantum dots (QDs) grown on GaAs(001) surface by molecular beam epitaxy under continuous and growth-interruption modes exhibit two families of QDs, quasi-3D (Q3D) and 3D QDs, whose volume density evolution is quantitatively described by a rate-equation kinetic model. The volume density of small Q3D QDs decreases exponentially with time during the interruption, while the single-dot mean volume of the large QDs increases by Ostwald ripening. The kinetics of growth involves conversion of quasi-3D to 3D QDs at a rate determined by superstress and participation of the wetting layer adatoms. The data analysis excludes that quasi-3D QDs are extrinsic surface features due to inefficient cooling after growth