Preconditions for a successful implementation of supervisors' prompt corrective action: Is there a case for a banking standard in the European Union?

Over the past years, several countries around the world have adopted a system of prudential prompt corrective action (PCA). The European Union countries are being encouraged to adopt PCA by policy analysts who explicitly call for its adoption. To date, most of the discussion on PCA has focused on its overall merits. This paper focuses on the preconditions needed for the adoption of an effective PCA. These preconditions include conceptual elements such as a prudential supervisory focus on minimizing deposit insurance losses and mandating supervisory action as capital declines. These preconditions also include institutional aspects such as greater supervisory independence and authority, more effective resolution mechanisms, and better methods of measuring capital.

How should banks account for loan losses?

The agencies that regulate banks are involved in an ongoing debate about the appropriate way for banks and other lenders to account for default risk on loans. Accounting authorities are concerned with whether the accounting method meets the needs of general-purpose users of financial statements, particularly investors. In contrast, bank supervisors are concerned about banks being inadequately capitalized and possibly failing. ; To shed light on this debate, this article reviews the generally accepted accounting principles (GAAP) currently used, which are based on historic-cost values for assets and liabilities. It then analyzes economic-value, or fair-value, accounting, which is being discussed as a substitute. ; The analysis suggests that the reported GAAP value is likely to understate the economic value of most banks’ portfolios most of the time. The economic values of loans would be more valuable if they were reliable. However, the authors argue, the fair value of credit losses must be estimated by management and hence may be biased by managerial attempts to attain earnings and capital targets. ; The authors conclude that using the lower of historic cost or economic value for valuing the credit risk of loans would provide the most relevant adequately reliable measure of loan value and would thus be the most appropriate procedure.Bank loans ; Default (Finance) ; Accounting

Reflectance characteristics of the Viking lander camera reference test charts

Reference test charts provide radiometric, colorimetric, and spatial resolution references for the Viking lander cameras on Mars. Reflectance measurements of these references are described, including the absolute bidirectional reflectance of the radiometric references and the relative spectral reflectance of both radiometric and colorimetric references. Results show that the bidirection reflectance of the radiometric references is Lambertian to within + or - 7% for incidence angles between 20 deg and 60 deg, and that their spectral reflectance is constant with wavelength to within + or - 5% over the spectral range of the cameras. Estimated accuracy of the measurements is + or - 0.05 in relative spectral reflectance

A filter spectrometer concept for facsimile cameras

A concept which utilizes interference filters and photodetector arrays to integrate spectrometry with the basic imagery function of a facsimile camera is described and analyzed. The analysis considers spectral resolution, instantaneous field of view, spectral range, and signal-to-noise ratio. Specific performance predictions for the Martian environment, the Viking facsimile camera design parameters, and a signal-to-noise ratio for each spectral band equal to or greater than 256 indicate the feasibility of obtaining a spectral resolution of 0.01 micrometers with an instantaneous field of view of about 0.1 deg in the 0.425 micrometers to 1.025 micrometers range using silicon photodetectors. A spectral resolution of 0.05 micrometers with an instantaneous field of view of about 0.6 deg in the 1.0 to 2.7 micrometers range using lead sulfide photodetectors is also feasible

Determinants of domestic and cross-border bank acquisitions in the European Union

This paper analyzes the determinants of bank acquisitions both within and across 25 members of the European Union (EU-25) during the period 1997–2004. Our results suggest that poorly managed banks (those with a high cost-to-income ratio) and larger banks are more likely to be acquired by other banks in the same country. The probability of being a target in a cross-border deal is larger for banks that are quoted in the stock market. Finally, banks operating in more concentrated markets are less likely to be acquired by other banks in the same country but are more likely to be acquired by banks in other EU-25 countries.Banks and banking - Europe

The sodium-potassium pump controls the intrinsic firing of the cerebellar Purkinje neuron

In vitro, cerebellar Purkinje cells can intrinsically fire action potentials in a repeating trimodal or bimodal pattern. The trimodal pattern consists of tonic spiking, bursting, and quiescence. The bimodal pattern consists of tonic spiking and quiescence. It is unclear how these firing patterns are generated and what determines which firing pattern is selected. We have constructed a realistic biophysical Purkinje cell model that can replicate these patterns. In this model, Na+/K+ pump activity sets the Purkinje cell's operating mode. From rat cerebellar slices we present Purkinje whole cell recordings in the presence of ouabain, which irreversibly blocks the Na+/K+ pump. The model can replicate these recordings. We propose that Na+/K+ pump activity controls the intrinsic firing mode of cerbellar Purkinje cells

On some differential equations arising in a time domain inverse scattering problem for a dissipative wave equation

The problem of identification of one spatially varying material property, defined within a slab, from boundary measurements is examined. This inverse problem is described by a functional differential equation. Uniqueness and existence of the solution of this inverse problem and the associated direct problem is proven. Of major importance in any inverse problem are the properties of the operator mapping the boundary measurements to the material property. It is shown that this operator is continuous and differentiable

Prediction of Viking lander camera image quality

Formulations are presented that permit prediction of image quality as a function of camera performance, surface radiance properties, and lighting and viewing geometry. Predictions made for a wide range of surface radiance properties reveal that image quality depends strongly on proper camera dynamic range command and on favorable lighting and viewing geometry. Proper camera dynamic range commands depend mostly on the surface albedo that will be encountered. Favorable lighting and viewing geometries depend mostly on lander orientation with respect to the diurnal sun path over the landing site, and tend to be independent of surface albedo and illumination scattering function. Side lighting with low sun elevation angles (10 to 30 deg) is generally favorable for imaging spatial details and slopes, whereas high sun elevation angles are favorable for measuring spectral reflectances