Determinants of Belgian bank lending intrest rates

This article first reviews the main determinants of bank loans’ interest rates and offers a brief discussion of the impact of capital requirements on interest rate margins. Next, it presents some empirical evidence, first, on the pass-through of the central bank rate to market rates and, subsequently, on the pass-through of market rates to retail interest rates using survey data for Belgian credit institutions. As predicted by economic theory, the size and significance of the pass-through of monetary policy impulses to market rates falls quickly with maturity. However, the long run pass-through remains almost complete for maturities lower or equal to one year. Belgian banks seem to adjust more quickly and more fully their retail interest rates on credit to enterprises than those on credit to households. With the exception of consumer loans, the long-term pass-through proves to be above 80 percent. Finally, this article goes into the first results of the new interest rates survey. Banks with a relatively high degree of capital coverage are found to ask higher lending rates and are probably granting riskier loans. Liquid banks and large banks generally set lower lending rates. Belgian firms and households are facing lending conditions broadly similar to those prevailing in the euro area.Pass-through, Banks, Determinants of lending interest rates

Share prices, house prices and monetary policy

Recent developments in stock and house prices revived the debate on the role of asset prices in the conduct of monetary policy. The article first explores the links between asset price fluctuations, macroeconomic developments and monetary policy, highlighting the possibility of asset price booms and bursts in an environment of stable consumer prices and the challenges for monetary policy. The problem of identification of “bubbles” is then illustrated by an assessment of recent developments in stock prices in the United States and the euro area and in house prices in the euro area, with special attention for the fast-increasing house prices in some countries and for the Belgian situation. Finally, the article briefly explains how asset prices are taken into account in the monetary policy strategy of the Eurosystem.monetary policy, transmission process, stock prices, residential property prices, Eurosystem

Underground Coal Thermal Treatment

The long-term objective of this work is to develop a transformational energy production technology by insitu thermal treatment of a coal seam for the production of substitute natural gas (SNG) while leaving much of the coalâs carbon in the ground. This process converts coal to a high-efficiency, low-GHG emitting gas fuel. It holds the potential of providing environmentally acceptable access to previously unusable coal resources. This topical report discusses the development of experimental capabilities, the collection of available data, and the development of simulation tools to obtain process thermo-chemical and geo-thermal parameters in preparation for the eventual demonstration in a coal seam. It also includes experimental and modeling studies of CO{sub 2} sequestration. Efforts focused on: ⢠Constructing a suite of three different coal pyrolysis reactors. These reactors offer the ability to gather heat transfer, mass transfer and kinetic data during coal pyrolysis under conditions that mimic in situ conditions (Subtask 6.1). ⢠Studying the operational parameters for various underground thermal treatment processes for oil shale and coal and completing a design matrix analysis for the underground coal thermal treatment (UCTT). This analysis yielded recommendations for terms of targeted coal rank, well orientation, rubblization, presence of oxygen, temperature, pressure, and heating sources (Subtask 6.2). ⢠Developing capabilities for simulating UCTT, including modifying the geometry as well as the solution algorithm to achieve long simulation times in a rubblized coal bed by resolving the convective channels occurring in the representative domain (Subtask 6.3). ⢠Studying the reactive behavior of carbon dioxide (CO{sub 2}) with limestone, sandstone, arkose (a more complex sandstone) and peridotite, including mineralogical changes and brine chemistry for the different initial rock compositions (Subtask 6.4). Arkose exhibited the highest tendency of participating in mineral reactions, which can be attributed to the geochemical complexity of its initial mineral assemblage. In experiments with limestone, continuous dissolution was observed with the release of CO{sub 2} gas, indicated by the increasing pressure in the reactor (formation of a gas chamber). This occurred due to the lack of any source of alkali to buffer the solution. Arkose has the geochemical complexity for permanent sequestration of CO{sub 2} as carbonates and is also relatively abundant. The effect of including NH{sub 3} in the injected gas stream was also investigated in this study. Precipitation of calcite and trace amounts of ammonium zeolites was observed. A batch geochemical model was developed using Geochemists Workbench (GWB). Degassing effect in the experiments was corrected using the sliding fugacity model in GWB. Experimental and simulation results were compared and a reasonable agreement between the two was observed

Data informed multipoint ground flare evaluation using measurement and theory

reportThis paper will explore the comparison of experimental (PFTIR) and simulation data obtained from assisted multipoint ground flares operating at high turndown. The flare assist is intended to encourage air entrainment for best combustion efficiency as well as reduce visible smoke. Operational envelopes of the assist to vent gas ratios are regulated on flare specific parameters. Experimental measurements have, however, measured low combustion efficiency even when operating within flare regulatory guidelines. This result is most likely due to the nonlinear nature of the flare combustion process and its response to regulatory constraints while being exposed to chaotic environmental conditions. Reliable and accurate methods for measuring, predicting and controlling flare performance across a wide range of conditions could offer significant environmental and economical advantages through better informed regulation, operation and ultimately high combustion efficiency. PFTIR measurements represent a promising technology for remote flare sensing, as they may be placed safely away from the combustion zone and report critical species concentrations along a line of sight from which a combustion efficiency may be computed. However, environmental conditions, experimental error and bias significantly affect the measured combustion efficiency. Advanced simulation techniques have also offered a promising avenue for evaluating flare performance. However, these simulation tools may require large computational resources or require high level expertise to run and evaluate. While both the experimental and simulation approach have their limitations, the combination of the two data sources can offer significant insight into the flare's performance and even offer realtime feedback for operation and control

Underground Coal Thermal Treatment

The long-term objective of this work is to develop a transformational energy production technology by insitu thermal treatment of a coal seam for the production of substitute natural gas (SNG) while leaving much of the coalâs carbon in the ground. This process converts coal to a high-efficiency, low-GHG emitting gas fuel. It holds the potential of providing environmentally acceptable access to previously unusable coal resources. This topical report discusses the development of experimental capabilities, the collection of available data, and the development of simulation tools to obtain process thermo-chemical and geo-thermal parameters in preparation for the eventual demonstration in a coal seam. It also includes experimental and modeling studies of CO{sub 2} sequestration. Efforts focused on: ⢠Constructing a suite of three different coal pyrolysis reactors. These reactors offer the ability to gather heat transfer, mass transfer and kinetic data during coal pyrolysis under conditions that mimic in situ conditions (Subtask 6.1). ⢠Studying the operational parameters for various underground thermal treatment processes for oil shale and coal and completing a design matrix analysis for the underground coal thermal treatment (UCTT). This analysis yielded recommendations for terms of targeted coal rank, well orientation, rubblization, presence of oxygen, temperature, pressure, and heating sources (Subtask 6.2). ⢠Developing capabilities for simulating UCTT, including modifying the geometry as well as the solution algorithm to achieve long simulation times in a rubblized coal bed by resolving the convective channels occurring in the representative domain (Subtask 6.3). ⢠Studying the reactive behavior of carbon dioxide (CO{sub 2}) with limestone, sandstone, arkose (a more complex sandstone) and peridotite, including mineralogical changes and brine chemistry for the different initial rock compositions (Subtask 6.4). Arkose exhibited the highest tendency of participating in mineral reactions, which can be attributed to the geochemical complexity of its initial mineral assemblage. In experiments with limestone, continuous dissolution was observed with the release of CO{sub 2} gas, indicated by the increasing pressure in the reactor (formation of a gas chamber). This occurred due to the lack of any source of alkali to buffer the solution. Arkose has the geochemical complexity for permanent sequestration of CO{sub 2} as carbonates and is also relatively abundant. The effect of including NH{sub 3} in the injected gas stream was also investigated in this study. Precipitation of calcite and trace amounts of ammonium zeolites was observed. A batch geochemical model was developed using Geochemists Workbench (GWB). Degassing effect in the experiments was corrected using the sliding fugacity model in GWB. Experimental and simulation results were compared and a reasonable agreement between the two was observed