Credit bureaus between risk-management, creditworthiness assessment and prudential supervision

"This text may be downloaded for personal research purposes only. Any additional reproduction for other purposes, whether in hard copy or electronically, requires the consent of the author. If cited or quoted, reference should be made to the full name of the author, the title, the working paper or other series, the year, and the publisher."This paper discusses the role and operations of consumer Credit Bureaus in the European Union in the context of the economic theories, policies and law within which they work. Across Europe there is no common practice of sharing the credit data of consumers which can be used for several purposes. Mostly, they are used by the lending industry as a practice of creditworthiness assessment or as a risk-management tool to underwrite borrowing decisions or price risk. However, the type, breath, and depth of information differ greatly from country to country. In some Member States, consumer data are part of a broader information centralisation system for the prudential supervision of banks and the financial system as a whole. Despite EU rules on credit to consumers for the creation of the internal market, the underlying consumer data infrastructure remains fragmented at national level, failing to achieve univocal, common, or defined policy objectives under a harmonised legal framework. Likewise, the establishment of the Banking Union and the prudential supervision of the Euro area demand standardisation and convergence of the data used to measure debt levels, arrears, and delinquencies. The many functions and usages of credit data suggest that the policy goals to be achieved should inform the legal and institutional framework of Credit Bureaus, as well as the design and use of the databases. This is also because fundamental rights and consumer protection concerns arise from the sharing of credit data and their expanding use

Systemic importance of financial institutions: regulations, research, open issues, proposals

In the field of risk management, scholars began to bring together the quantitative methodologies with the banking management issues about 30 years ago, with a special focus on market, credit and operational risks. After the systemic effects of banks defaults during the recent financial crisis, and despite a huge amount of literature in the last years concerning the systemic risk, no standard methodologies have been set up to now. Even the new Basel 3 regulation has adopted a heuristic indicator-based approach, quite far from an effective quantitative tool. In this paper, we refer to the different pieces of the puzzle: definition of systemic risk, a set of coherent and useful measures, the computability of these measures, the data set structure. In this challenging field, we aim to build a comprehensive picture of the state of the art, to illustrate the open issues, and to outline some paths for a more successful future research. This work appropriately integrates other useful surveys and it is directed to both academic researchers and practitioners

A multimodal cell census and atlas of the mammalian primary motor cortex

ABSTRACT We report the generation of a multimodal cell census and atlas of the mammalian primary motor cortex (MOp or M1) as the initial product of the BRAIN Initiative Cell Census Network (BICCN). This was achieved by coordinated large-scale analyses of single-cell transcriptomes, chromatin accessibility, DNA methylomes, spatially resolved single-cell transcriptomes, morphological and electrophysiological properties, and cellular resolution input-output mapping, integrated through cross-modal computational analysis. Together, our results advance the collective knowledge and understanding of brain cell type organization: First, our study reveals a unified molecular genetic landscape of cortical cell types that congruently integrates their transcriptome, open chromatin and DNA methylation maps. Second, cross-species analysis achieves a unified taxonomy of transcriptomic types and their hierarchical organization that are conserved from mouse to marmoset and human. Third, cross-modal analysis provides compelling evidence for the epigenomic, transcriptomic, and gene regulatory basis of neuronal phenotypes such as their physiological and anatomical properties, demonstrating the biological validity and genomic underpinning of neuron types and subtypes. Fourth, in situ single-cell transcriptomics provides a spatially-resolved cell type atlas of the motor cortex. Fifth, integrated transcriptomic, epigenomic and anatomical analyses reveal the correspondence between neural circuits and transcriptomic cell types. We further present an extensive genetic toolset for targeting and fate mapping glutamatergic projection neuron types toward linking their developmental trajectory to their circuit function. Together, our results establish a unified and mechanistic framework of neuronal cell type organization that integrates multi-layered molecular genetic and spatial information with multi-faceted phenotypic properties

Towards Understanding Aggressive Behavior in Residential Care Facilities Using Process Mining

People with intellectual disabilities often live in residential care facilities that aim to provide their clients with the best possible quality of life. Aggressive behavior forms a threat to not only the quality of life of the clients, but also the safety of the staff. This study aims to uncover the dynamics underlying the evolution of aggressive behavior in people with intellectual disabilities. We take a process mining approach to analyze patterns of aggressive behavior. More specifically, we analyze data from 1,115 clients from a Dutch residential care facility over a period of three years. Our results show that there are two different groups of cases: those exclusively showing the same type of aggressive behavior and those who show mixed types of aggressive behavior. What stands out is that physical aggression towards other people plays a key role in the patterns of aggressive behavior. The results were validated with a behavioral expert from the care organization

A Cross-Organizational Process Mining Framework for Obtaining Insights from Software Products: Accurate Comparison Challenges

Software vendors offer various software products to large numbers of enterprises to support their organization, in particular Enterprise Resource Planning (ERP) software. Each of these enterprises use the same product for similar goals, albeit with different processes and configurations. Therefore, software vendors want to obtain insights into how the enterprises use the software product, what the differences are in usage between enterprises, and the reasons behind these differences. Cross-organizational process mining is a possible solution to address these needs, as it aims at comparing enterprises based on their usage. In this paper, we present a novel Cross-Organizational Process Mining Framework which takes as input, besides event log, semantics (meaning of terms in an enterprise) and organizational context (characteristics of an enterprise). The framework provides reasoning capabilities to determine what to compare and how. Besides, the framework enables one to create a catalog of metrics by deducing diagnostics from the usage. By using this catalog, the framework can monitor the (positive) effects of changes on processes. An enterprise operating in a similar context might also benefit from the same changes. To accommodate these improvement suggestions, the framework creates an improvement catalog of observed changes. Later, we provide a set of challenges which have to be met in order to obtain the inputs from current products to show the feasibility of the framework. Next to this, we provide preliminary results showing they can be met and illustrate an example application of the framework in cooperation with an ERP software vendor

Towards a conceptual framework for decomposing non-functional Requirements of business process into quality of service attributes

Non-functional Requirements (NFRs) of web services are defined by IT teams at the implementation level often as Quality of Service (QoS) attributes. Orchestrating web services to run business processes requires a rigorous definition of the NFRs of such web services. The definition of QoS attributes should consider the business process NFRs since misinterpretations of web service NFRs may affect the behavior of the web services and hence achieving the business goals. The approaches proposed so far are still heavily dependent on an IT expert’s knowledge to identify the appropriate QoS attributes required to meet particular business process NFRs. Defining appropriate QoS attributes without reference to business process-level NFRs may be a costly, time-consuming task. We propose a conceptual framework for the hierarchical decomposition of NFRs from the business process level to the web service level. This framework seeks to reduce the dependence on a particular IT expert’s knowledge by simplifying the dialog between the business and IT areas. The proposed framework relies on a structure of NFRs interdependence. The main reference was the ISO/IEC 25010 Product Quality Model, extended by additional software quality models and particular QoS attributes