Bank level stability factors and consumer confidence – a comparative study of Islamic and conventional banks’ product mix

This study examines the behaviour of key bank level stability factors of liquidity, capital, risk-taking and consumer confidence in Islamic and conventional banks which operate in the same market. Using fixed effect sample of 194 banks of Gulf Cooperating Countries between 2000 and 2007, we found that liquidity is not determined by bank’s product mix but rather attributed to systematic factors. However, non performing assets (representing loans to sub prime borrowers) have positive and significant relationship with liquidity implying that during the crisis, Islamic banks tend to take stringent risk strategies compared to conventional banks. Furthermore, Islamic banks generally tend to provide higher consumer confidence levels as they were more capitalized than conventional banks, although conventional banks had carried higher averages of liquidity compared to Islamic banks. Consumer confidence levels or depositors’ discipline as proxied by deposits and customer funding over liabilities generally appear to be higher in Islamic banks than conventional banks

The organization of project evaluation under competition

Organization, Project evaluation, Competition, D2, L2,

Ungulate herbivory modifies the effects of climate change on mountain forests

Recent temperature observations suggest a general warming trend that may be causing the range of tree species to shift to higher latitudes and altitudes. Since biotic interactions such as herbivory can change tree species composition, it is important to understand their contribution to vegetation changes triggered by climate change. To investigate the response of forests to climate change and herbivory by wild ungulates, we used the forest gap model ForClim v2.9.6 and simulated forest development in three climatically different valleys in the Swiss Alps. We used altitudinal transects on contrasting slopes covering a wide range of forest types from the cold (upper) to the dry (lower) treeline. This allowed us to investigate (1) altitudinal range shifts in response to climate change, (2) the consequences for tree species composition, and (3) the combined effect of climate change and ungulate herbivory. We found that ungulate herbivory changed species composition and that both basal area and stem numbers decreased with increasing herbivory intensity. Tree species responded differently to the change in climate, and their ranges did not change concurrently, thus causing a succession to new stand types. While climate change partially compensated for the reductions in basal area caused by ungulate herbivory, the combined effect of these two agents on the mix of the dominant species and forest type was non-compensatory, as browsing selectively excluded species from establishing or reaching dominance and altered competition patterns, particularly for light. We conclude that there is an urgent need for adaptive forest management strategies that address the joint effects of climate change and ungulate herbivory