Competition in financial services

In the financial services sector, the failure of a single institution can have a compounding effect on the sector, and on national and global economies. In particular, there is systemic risk from inter-institution lending, and this effect is more complex in Australia due to the small number of major players. In retail banking in Australia, following a similar practice in most developed countries, if an unsecured creditor is a retail depositor, their deposit is insured by the government. That is, if a retail bank fails, the Federal Government will make the depositors whole. The regulatory system, particularly the prudential regulatory system, is designed to protect depositors’ and borrowers’ interests, and this protects the interest of the government. The effect is that regulatory policy on banking has prioritised stability in consideration of the sovereign risk associated with the risk of retail bank failure. However, this approach also creates a policy dilemma. The dilemma concerns the extent to which the retail banking sector can attain the benefits of the vigorous rivalry from effective and efficient competition, without unduly risking stability and the potential of a devastating call on the public purse. Specifically, in the context of effective and efficient competition, there is limited competitiveness in retail banking in Australia. This is reflected in the static state of market share between the four major banks, and very slow and marginal improvements gains even by strong second tier competitors. Furthermore, the retail banking sector’s capacity for product and service innovation is limited. Although the absence of vigorous rivalry is conducive to stability within the retail banking sector, it is likely to detract from the welfare of retail banking consumers. Furthermore, the level of innovation may not be as high as is feasible and barriers, including prudential regulatory barriers to entry or expansion, mean that the extent of rivalry is unlikely to change without some form of promotion of competition. The paper consequently makes a four-point recommendation for the removal of the ‘four pillars’ policy:  The four major banks are protected by an implicit government guarantee that impacts market operation with little observable benefit to consumers, and may be a source of consumer disutility.  The four pillars policy has prompted increased vertical integration within the sector, particularly in the area of mortgage products.  There are sufficient merger protections provided by Part IV of the Competition and Consumer Act 2010 (Cth).  Competition and contestability arise when there are reasonably low barriers to entry and exit from the sector. It is not clear that low barriers to entry exist in Australia, and evidence to support this view comes from the failure of international banks to gain a significant toehold in the retail banking sector in Australia. One deterrent to entry is the regulatory focus on the four pillars. The authors recognise that this position is at odds with the view of the Financial System Inquiry. However, the rationale in the report of the Inquiry was to prevent mergers, and the current competition law achieves this objective. The paper recommends two specific policies to promote competition in retail banking without the structural intervention that would otherwise be required to improve the intensity of competition in the retail banking sector:  Introduce bank account number portability. This would use ‘know your customer’ and central database systems in a similar form to those that have been used for mobile number portability in Australia for the last decade and a half.  Introduce customer access to data held by banks to allow third parties to compare bank offerings across all banks.  Significantly, these two recommendations are consistent with the productivity proposals issued by the UK Government in July 2015. The research paper also examines crowd equity funding as a disruptive force in the banking sector, and recommends that crowd equity funding be permitted with the following safeguards:  ASIC should take an active role in monitoring crowd equity funding and be willing to sue in case of fraudulent action.  Any intermediary online platform should have a financial services licence with limited duty of care.  There should be a cap for business raisings through crowd equity funding of $2 million in a 12-month period.  Crowd equity funding is a social phenomenon. Through its use of social media, it has attracted people who have previously never been interested in investing in companies. Instead of being feared, this interest should be nurtured through the promotion of investors’ financial education

Commercial Military Actors and Civilian Victimization in Africa, Middle East, Latin America, and Asia, 1980–2011

Abstract The current international normative order strongly condemns strategies of civilian victimization, and actors engaging in atrocities face material, criminal, and reputational sanctions. The growth of the market for force has raised concerns about clients outsourcing atrocities to commercial military actors (CMAs), such as private military and security companies or mercenaries, and thereby circumventing accountability under international norms. This investigation explores whether interactions on the market for force are associated with an increase in the likelihood of violence against civilians. We argue that there is a variance in market interactions. While some market actors will comply with international norms, others will take advantage and circumvent normative restrictions. The crucial factor determining compliance and noncompliance are costs of norm violation, which vary across market actors. Those clients and CMAs with a higher exposure to sanctions, or an interest in the status quo of the normative order, are less likely to be associated with norm violations, and vice versa. We test our claims using a negative binomial regression and by drawing on new data from the Commercial Military Actor Dataset, which records contracting for force and force-related services. Overall, we found that there is a market segment where actors use market relations to circumvent international norms, yet mostly market interactions appear to comply with international norms.</jats:p

Seguridad climática en centroamérica

Este informe ofrece una investigación en profundidad sobre los riesgos de seguridad climática en la región centroamericana. Examina las interrelaciones entre cambio climático, seguridad humana y conflictos, analizando cómo los impactos del cambio climático pueden exacerbar los riesgos de seguridad para los individuos, las comunidades y los Estados. En primer lugar, el informe ofrece una visión detallada del contexto climático en la región centroamericana, examinando tanto las tendencias climáticas actuales como las proyecciones, resaltando el alto grado de exposición y vulnerabilidad climática de la región. También examina las dinámicas de fragilidad, conflicto y violencia, pasadas y presentes, para exponer su impacto perjudicial sobre los Estados y las comunidades, así como para comprender sus causas raíz subyacentes. Asimismo, destaca factores socioeconómicos como la pobreza, la inseguridad alimentaria y la desigualdad, los cuales desempeñan un papel en la exacerbación de los riesgos de seguridad humana y conflicto en la región. A través de un amplio proceso de investigación en el que se examinó literatura académica y literatura gris, y teniendo en cuenta los contextos socioeconómicos y políticos, este informe descubre tres rutas causales de la seguridad climática, a través de las cuales surgen las interconexiones entre cambio climático, seguridad humana y conflictos

Climate security in Central America

This report provides an in-depth investigation into climate security risks in the Central American region. It examines the interlinkages between climate change, human security and conflict, looking at how the impacts of climate change can exacerbate security risks for individuals, communities and states. The report first provides a detailed overview of the climate context in the Central American region examining both current climate trends and future projections, underlying the high degree of climate exposure and vulnerability in the region. It also examines past and current fragility, conflict and violence dynamics to outline their detrimental impact on states and communities as well as understand their underlying drivers It also highlights the socioeconomic factors such as poverty, food insecurity and inequality that play a role in exacerbating human security and conflict risks in the region. Through an extensive research process of examining academic and grey literature, taking into account the socioeconomic and political contexts, this report uncovers three climate security pathways through which the interconnections between climate change, human security and conflict can arise

¿Cómo exacerba el cambio climático las causas raíz de la inseguridad humana y los conflictos en Guatemala?

Esta ficha técnica da respuestas sobre cómo el cambio climático exacerba las causas raíz de la inseguridad humana y los conflictos en Guatemala, utilizando un análisis de rutas causales. Se identifican dos rutas causales principales: 1. Inseguridad alimentaria y de los medios de vida: Los impactos del cambio climático pueden exacerbar las condiciones socioeconómicas que conducen a la vulnerabilidad de los hogares que dependen de la agricultura de subsistencia y de secano, y contribuir aún más a la inseguridad alimentaria y de los medios de vida. Esto, a su vez, puede incentivar la migración económica hacia centros urbanos, dentro y fuera del país. La falta de acceso a medios de vida alternativos puede aumentar la participación en actividades ilícitas y el reclutamiento por parte de grupos criminales, contribuyendo indirectamente a reforzar las redes activas de crimen organizado en las regiones fronterizas con México y Honduras. 2. Disponibilidad y acceso a los recursos: Se han observado impactos del cambio climático en los sistemas hídricos, terrestres y alimentarios, y se prevé que disminuya aún más la productividad de las tierras agrícolas, disminuya el rendimiento de los principales cultivos comerciales y dificulte la disponibilidad y el acceso a los recursos naturales en Guatemala. El aumento de la competencia por el acceso y distribución de los recursos naturales puede provocar tensiones y conflictos

How does climate exacerbate root causes of conflict in Guatemala? Climate Security Pathway Analysis

This factsheet gives answers on how climate exacerbates root causes of conflict in Guatamala, using a pathway analysis. Two main pathways are identified: 1. Livelihood and Food Insecurity: Climate change impacts may exacerbate socioeconomic conditions leading to vulnerability in households dependent on rain-fed subsistence agriculture, and further contribute to food and livelihood insecurity. This, in turn, may spur economic migration towards urban centres inside and outside the country. The lack of access to alternative livelihood options may increase engagement in illicit activities and recruitment by criminal groups, indirectly contributing to the strength of organized crime networks active in the border regions with Mexico and Honduras. 2. Resource Availability and Access: The impact of climate change on water, land and food systems has been observed and is predicted to further reduce agricultural land productivity, decrease key cash crop yields, as well as hinder the availability and access to natural resources in Guatemala. Increased competition over natural resource access and distribution may lead to tensions and conflicts

The management of desmoid tumours: A joint global consensus-based guideline approach for adult and paediatric patients

Abstract Desmoid tumor (DT; other synonymously used terms: Desmoid-type fibromatosis, aggressive fibromatosis) is a rare and locally aggressive monoclonal, fibroblastic proliferation characterised by a variable and often unpredictable clinical course. Previously surgery was the standard primary treatment modality; however, in recent years a paradigm shift towards a more conservative management has been introduced and an effort to harmonise the strategy amongst clinicians has been made. We present herein an evidence-based, joint global consensus guideline approach to the management of this disease focussing on: molecular genetics, indications for an active treatment, and available systemic therapeutic options. This paper follows a one-day consensus meeting held in Milan, Italy, in June 2018 under the auspices of the European Reference Network for rare solid adult cancers, EURACAN, the European Organisation for Research and Treatment of Cancer (EORTC) Soft Tissue and Bone Sarcoma Group (STBSG) as well as Sarcoma Patients EuroNet (SPAEN) and The Desmoid tumour Research Foundation (DTRF). The meeting brought together over 50 adult and pediatric sarcoma experts from different disciplines, patients and patient advocates from Europe, North America and Japan

Towards a common vision of climate security in Guatamela

CGIAR’s Climate Resilience Initiative, also known as ClimBeR, is working to address these needs. On the 21st and 22nd of February, we ran in Guatemala City the first climate security workshop in Central America: Towards a common vision on the relationship between climate, conflict, and human security in Guatemala. The workshop was organized by the Alliance of Bioversity and CIAT along with the CGIAR’s Climate Resilience Initiative; the Fragility, Conflict, and Migration Initiative; the regional integrated initiative AgriLAC Resiliente; and the CGIAR FOCUS Climate Security and benefited from the participation of 45 individuals from 20 different organizations, including regional & local organizations, government institutions, UN agencies, and national universitie

Hacia una visión compartida sobre la seguridad climática en Guatemala

Este infore explora las interconexiones entre el cambio climático, la seguridad humana y los conflictos en Guatemala basándose en el Taller sobre Seguridad Climática celebrado en Ciudad de Guatemala los días 21 y 22 de febrero de 2023. Las implicaciones del cambio climático para la seguridad, comúnmente conocidas como el nexo clima-seguridad, han sido ampliamente discutidas tanto en círculos políticos como académicos. La seguridad climática se refiere las amenazas y riesgos de seguridad a estados, sociedades e individuos causados directa o indirectamente por los efectos del cambio climático. Los riesgos de seguridad en este documento son entendidos de una manera amplia enfocándose no solo en los riesgos de seguridad nacional vistos desde el punto de vista de los estados sino, principalmente, en los riesgos de seguridad humana enfocados en los retos para la supervivencia y los medios de vida de la población que incluye la seguridad económica, alimentaria, sanitaria, medioambiental, personal, comunitaria y política (UNTFHS, 2016)