Monitoring Pro-Cyclicality under the Capital Requirements Directive: Preliminary Concepts for Developing a Framework

This paper provides an overview of the questions that will need to be addressed in order to determine whether increased cyclicality in capital requirements will exacerbate the pro-cyclicality in the financial system. Many central banks have raised concerns about the potential cost of procyclicality that could come with the Basel II framework, which will be implemented in the EU via the Capital Requirements Directive (CRD). Previous capital adequacy rules required banks to hold a minimum amount of capital for each loan, regardless of the different risks involved. The main objective of the Basel II framework/CRD is to make capital requirements more risk-sensitive. Therefore, by construction, the capital requirements under the CRD will be more cyclical than under the previous rules. This raises two questions. First, does it matter whether regulatory capital requirements fluctuate more than before if banks’ (lending) behaviour is driven by other capital considerations (for example economic capital) ? Second, if it does matter, what impact will this have on the economic cycle

Selection of wild ungulates by wolves Canis lupus

We investigated the patterns of wild ungulate selection by wolves in an 860 km 2 study area of the Northern Apennines (North Italy), in order to detect seasonal variation in wolf diet and changes of feeding habits in relation to the increased abundance of wild ungulates. From June 2007 to May 2008 we collected wolf scats and recorded the signs of presence of wild ungulate species along 25 transects, representative of the different habitat types within the study area. We analysed the scats to identify the main food items used by wolves in each season and we compared the proportions of biomass of wild ungulate species in the diet (use) to those calculated from the signs of presence (availability). We recorded significant seasonal changes in wolf feeding habits, but the main food items were wild ungulates, mainly wild boars, and medium-sized mammals. Livestock (sheep, goats, and calves) were used only in summer and early autumn, during the grazing period, in small quantities. Comparing the current diet of wolves to that recorded in the past in the same study area highlighted significant differences for wild ungulates and livestock, the former being more used nowadays and the latter less. Our study showed that, in the Northern Apennines, the feeding behaviour of wolves has evolved towards a greater use of wild prey, so reducing the impact on livestock and consequently wolf-human conflicts. Moreover, predation by wolves was directed towards the most abundant species of wild ungulates. © 2012 Copyright 2011 Dipartimento di Biologia Evoluzionistica dell'Università, Firenze, Italia