Robust Estimators in Generalized Pareto Models

This paper deals with optimally-robust parameter estimation in generalized Pareto distributions (GPDs). These arise naturally in many situations where one is interested in the behavior of extreme events as motivated by the Pickands-Balkema-de Haan extreme value theorem (PBHT). The application we have in mind is calculation of the regulatory capital required by Basel II for a bank to cover operational risk. In this context the tail behavior of the underlying distribution is crucial. This is where extreme value theory enters, suggesting to estimate these high quantiles parameterically using, e.g. GPDs. Robust statistics in this context offers procedures bounding the influence of single observations, so provides reliable inference in the presence of moderate deviations from the distributional model assumptions, respectively from the mechanisms underlying the PBHT.Comment: 26pages, 6 figure

Foreign Banks are Branching out: Changing Geographies of Hungarian Banking, 1987–1999

Walking through the streets of Budapest in spring 1999 could have given you the following impression: the supermarkets (Spar), the milk products sold there (Danone, Müller), and the property markets (OBI) come from different Western European countries such as the Netherlands, France and Germany. Almost all fast food restaurants (McDonalds, Pizza Hut, KFC) and many hotels (Hilton, Mariott) have their origins in the US; shoes and clothes offered in downtown are designed in Italy or France (Benetton, Marco Polo); medicine is predominantly produced in Switzerland (Novartis, Roche) and the banks as well as the car dealerships have their roots everywhere in the so-called Western world - usually including Japan and other Asian countries with major (car) companies - but not in Hungary itself...

Structural Power and the Politics of Bank Capital Regulation in the UK

This paper describes and explains a significant tightening in bank capital regulation in the UK since the 2008 financial crisis. The banks fiercely resisted the new capital regulations but in a novel theoretical contribution we argue that the structural power of business was reduced due to the changing ideas of state leaders, by changing institutional arrangements within the state and by wider open politicisation of banking reform

Architecture, symbolic capital and elite mobilizations: The case of the Royal Bank of Scotland corporate campus

In this article, we apply the conceptual framework of Pierre Bourdieu, in particular forms of capital, social fields, field of power and modes of domination, to demonstrate how the study of a symbolically powerful building can provide insights into what are often opaque elite interactions. In order to do this, we focus on the corporate campus headquarters of a powerful financial institution, the Royal Bank of Scotland in the context of Scotland in the period 2000–2009. We pose the following questions: What is the relationship between corporate space and the field of power? What role does a corporate building play in circuits of capital conversion? What does this case tell us about the role of architecture in elite mobilisations? In addressing these questions, we contribute to critical organisation studies by identifying and theorising the role of corporate space in inter-elite dynamics and circuits of capital conversion. This approach, we argue, provides a methodological lever which could be applied to other symbolically important buildings in order to understand the nature and role of inter-field interactions in the conception and realisation of such buildings

Are the major global banks now safer? Structural continuities and change in banking and finance since the 2008 crisis

Are the largest banks now safer since the Global Financial Crisis? Focusing on a ‘before’ (2005) and ‘after’ (2015) balance sheet analysis of twenty-one of the largest American, British and European banks, we assess post-crisis banking stability. Much of the literature focuses on post-crisis regulation, but we argue instead the main driver of change since the crisis has been structural conditions in banking and financial markets, particularly high levels of competition, bleak profit and share price conditions, and the largely unsolved too big to fail problem. Older as well as new forms of systemic risk thus prevail and many of the global banks still face major vulnerabilities

Institutionalizing operational risk management: an empirical study

This paper examines the development of operational risk management (ORM) in a financial organization, focusing in particular on the role of IT in institutionalizing the new regime. Through an interpretive case study in a major US financial institution, the paper uses Giddens’ structuration theory to examine how it adjusts to the demands of protecting itself against new operational risks. The discussion and results of our study are expressed in three propositions: (1) the regulatory context and technological development affect the shape and the outcome of ORM; (2) implementing ORM is a process of reflexive monitoring and transforming organizational practices in a financial institution; (3) the role of IT in ORM is contingent on the extant organizational structure and on the choice of risk management approach