Competition and Financial Stability in European Cooperative Banks

Cooperative banks are a driving force for socially committed business at the local level, accounting for around one fifth of the European Union (EU) bank deposits and loans. Despite their importance, little is known about the relationship between bank stability and competition for these small credit institutions. Does competition affect the stability of cooperative banks? Does the financial stability of banks increase/decrease when competition is higher? We assess the dynamic relationship between competition and bank soundness (both in the short and long run) among European cooperative banks between 1998 and 2009. We obtain three main results. First, we provide evidence in line with the competition-stability view proposed by Boyd and De Nicolò (2005). Bank market power negatively “Granger-causes” banks’soundness, meaning that there is a positive relationship between competition and stability. Second, we find that this fundamental relationship does not change during the 2007–2009 financial crisis. Third, we show that increased homogeneity in the cooperative banking sector positively affects bank soundness. Our findings have important policy implications for designing and implementing regulations that enhance the overall stability of the financial system and in particular of the cooperative banking sector

BPS domain walls in N=4 supergravity and dual flows

We establish the conditions for supersymmetric domain wall solutions to N=4 gauged supergravity in five dimensions. These read as BPS first-order equations for the warp factor and the scalar fields, driven by a superpotential and supplemented by a set of constraints that we specify in detail. Then we apply our results to certain consistent truncations of IIB supergravity, thus exploring their dual field theory renormalization group flows. We find a universal flow deforming superconformal theories on D3-branes at Calabi-Yau cones. Moreover, we obtain a superpotential for the solution corresponding to the baryonic branch of the Klebanov-Strassler theory, as well as the superpotential for the flow describing D3 and wrapped D5-branes on the resolved conifold.Comment: 42 pages, 1 figure. v2: minor changes, matches published versio

Bootstrapping the 3d Ising twist defect

Recent numerical results point to the existence of a conformally invariant twist defect in the critical 3d Ising model. In this note we show that this fact is supported by both epsilon expansion and conformal bootstrap calculations. We find that our results are in good agreement with the numerical data. We also make new predictions for operator dimensions and OPE coefficients from the bootstrap approach. In the process we derive universal bounds on one-dimensional conformal field theories and conformal line defects.Comment: 24+8 pages, 12 figures, references adde

Thermodynamic Bubble Ansatz

Motivated by the computation of scattering amplitudes at strong coupling, we consider minimal area surfaces in AdS_5 which end on a null polygonal contour at the boundary. We map the classical problem of finding the surface into an SU(4) Hitchin system. The polygon with six edges is the first non-trivial example. For this case, we write an integral equation which determines the area as a function of the shape of the polygon. The equations are identical to those of the Thermodynamics Bethe Ansatz. Moreover, the area is given by the free energy of this TBA system. The high temperature limit of the TBA system can be exactly solved. It leads to an explicit expression for a special class of hexagonal contours.Comment: 55 pages, 22 figures. v2: references added, V3: small typo fixe

An algorithm for constructing certain differential operators in positive characteristic

Given a non-zero polynomial $f$ in a polynomial ring $R$ with coefficients in a finite field of prime characteristic $p$, we present an algorithm to compute a differential operator $\delta$ which raises $1/f$ to its $p$th power. For some specific families of polynomials, we also study the level of such a differential operator $\delta$, i.e., the least integer $e$ such that $\delta$ is $R^{p^e}$-linear. In particular, we obtain a characterization of supersingular elliptic curves in terms of the level of the associated differential operator.Comment: 23 pages. Comments are welcom

Unified Dark Matter scalar field models with fast transition

We investigate the general properties of Unified Dark Matter (UDM) scalar field models with Lagrangians with a non-canonical kinetic term, looking specifically for models that can produce a fast transition between an early Einstein-de Sitter CDM-like era and a later Dark Energy like phase, similarly to the barotropic fluid UDM models in JCAP1001(2010)014. However, while the background evolution can be very similar in the two cases, the perturbations are naturally adiabatic in fluid models, while in the scalar field case they are necessarily non-adiabatic. The new approach to building UDM Lagrangians proposed here allows to escape the common problem of the fine-tuning of the parameters which plague many UDM models. We analyse the properties of perturbations in our model, focusing on the the evolution of the effective speed of sound and that of the Jeans length. With this insight, we can set theoretical constraints on the parameters of the model, predicting sufficient conditions for the model to be viable. An interesting feature of our models is that what can be interpreted as w_{DE} can be <-1 without violating the null energy conditions.Comment: Slightly revised version accepted for publication in JCAP, with a few added references; 27 pages, 13 figure