Credit risk measurement under Basel II : an overview and implementation issues for developing countries

The objective of this paper is to provide an overview of the changes in the calculation of minimum regulatory capital requirements for credit risk that have been drafted by the Basel Committee on Banking Supervision (Basel II). Even though the revised credit capital rules represent a dramatic change compared to Basel I, it is shown that Basel II merely seeks to codify (albeit incompletely) existing good practices in bank risk measurement. However, its effective implementation in many developing countries is hindered by fundamental weaknesses in financial infrastructure that will need to be addressed as a priority.Banks&Banking Reform,Banking Law,Insurance&Risk Mitigation,Financial Intermediation,Economic Theory&Research

Failing and Merging as Competing Alternatives during Times of Financial Distress: Evidence from the Colombian Financial Crisis

This paper studies the determinants of individual bank failures and M&A processes in Colombia during the financial crisis of the late 1990s. Using bank-specific data we estimate competing risk hazards models and find that while profitability and capitalization are the most important determinants of the probability of failing, bank´s size, efficiency and capitalization are the main determinants of the probability of participating in an integration process. All else constant, an increase in capitalization reduces the probability of disappearing, whether due to the occurrence of bankruptcy, a merge or an acquisition. However, a marginal increase in capitalization reduces significantly more the probability of bankruptcy than the probability of integration. This study is the first to present a competing risks hazard model to identify covariates that excerpt significant influence on the probability of failing or merging for banks of an emerging economy.Survival analysis; Competing risk models; Colombia. Classification JEL: G21; G33; G33; C25

The typology of partial credit guarantee funds around the world

This paper presents data on 76 partial credit guarantee schemes across 46 developed and developing countries. Based on theory, the authors discuss different organizational features of credit guarantee schemes and their variation across countries. They focus on the respective role of government and the private sector and different pricing and risk reduction tools and how they are correlated across countries. The findings show that government has an important role to play in funding and management, but less so in risk assessment and recovery. There is a surprisingly low use of risk-based pricing and limited use of risk management mechanisms.

Measuring the performance and achievement of social objectives of development finance institutions

This paper develops and tests a proposed methodology that puts forward a new integrated method for evaluating the performance of development finance institutions. This methodology applies assessment criteria that take into account both the social objective that the development finance institution addresses and the subsidies it received in order to achieve such an objective. This methodology is applied to two pilot case studies-Banadesa (Honduras) and Banrural (Guatemala). The authors calculate the previously tested subsidy dependence index, which measures the degree of an institution's subsidy dependence. The paper develops and estimates a new measure-the output index- which indicates the level to which the institution fulfills the social objectives of the state. The analysis integrates the subsidy dependence index and the output index to assess the effectiveness associated with meeting the social objective. The findings suggest that the integration of the two indexes can constitute the basis of a meaningful evaluation framework for the performance of development finance institutions. This new methodology can also be a useful metric for policy makers who are seeking to decide on an optimal allocation of scarce funds for development finance institutions that pursue social goals and for management that seeks improved performance outcomes.,Access to Finance,Debt Markets,Banks&Banking Reform,Economic Theory&Research

Tourism and the demonstration effect: Empirical evidence

The demonstration effect has become a well-established concept in the literature on tourism. It has been commonly reported as a consequence of tourism, focusing on the emulation of tourists’ consumption patterns. However, there is very limited empirical evidence specifically focused on how tourist behaviour is actually or potentially emulated by locals. This study aims to fill this gap by presenting the findings of a research project looking at how women in a tourism destination in Mexico have adopted tourists’ behavioural patterns either entirely or partially. Based on in-depth interviews and focus groups, this study reveals that tourist behaviours, attitudes, and certain ways of thinking can be and have been actually adopted by local women. Nevertheless, it also shows that local social groups do not copy tourist behaviour blindly; instead, residents are also critical in demonstration effect processes. They observe, analyse, compare, evaluate and decide on what and how tourists’ specific behaviours are adopted

Ideación suicida y consumo de bebidas alcohólicas en usuarios mayores de 18 años del centro de salud mental comunitaria de Trujillo

Determinar si la ideación suicida es factor asociado a trastorno por abuso de consumo de alcohol en el Centro Comunitario de Trujillo. Material y métodos: Se llevó a cabo un estudio analítico, transversal en el que se incluyeron a 162 pacientes mayores de 18 años, según criterios de selección los cuales se dividieron en función de la presencia o no de trastorno por consumo de alcohol, se calculó el chi cuadrado y el estadígrafo odds ratio. Resultados: No se apreciaron diferencias significativas respecto a las variables edad, sexo, procedencia, nivel académico, estado civil, condición laboral entre los grupos de estudio (p>0.05), la frecuencia de ideación suicida en pacientes con trastorno por abuso de alcohol fue de 36%, la frecuencia de ideación suicida en pacientes sin trastorno por abuso de alcohol fue de 11%, existe asociación entre ideación suicida y trastorno por abuso de alcohol con un odds ratio de 4.40 el cual fue significativo (p<0.05). Conclusión: la ideación suicida es factor asociado a trastorno por abuso de consumo de alcohol en el Centro Comunitario de Trujillo.To determine if suicidal ideation is a factor associated with alcohol use disorder in the Trujillo Community Center. Material and methods: An analytical, cross-sectional study was carried out in which 162 patients over 18 years of age were included, according to selection criteria which were divided according to the presence or not of alcohol use disorder, it was calculated the chi square and the odds ratio statistic. Results: No significant differences were observed regarding the variables age, sex, origin, academic level, marital status, employment status between the study groups (p>0.05), the frequency of suicidal ideation in patients with abuse disorder. of alcohol was 36%, the frequency of suicidal ideation in patients without alcohol use disorder was 11%, there is an association between suicidal ideation and alcohol use disorder with an odds ratio of 4.40 which was significant (p<0.05). Conclusion: suicidal ideation is a factor associated with alcohol use disorder in the Trujillo Community Center.Tesi

Spring break travel: Motivations and behaviour in a Mexican destination

ArtículoSpring break travel is a growing market and has become a relevant research object. Specifically, binge drinking, illicit drug use and high-risk sexual behaviour have become the focus of academic attention. Identifying such behaviour is relevant in designing policies for tourism management, particularly for the reduction of negative implications of such behaviours. This descriptive study aimed to identify the motivations, alcohol consumption, drug use and sexual behavioural patterns of spring break travellers in Acapulco, Mexico. Based on a quantitative approach, a total of 173 male and 112 female North American students were surveyed during spring break 2010. The study revealed that the party reputation of a destination is one of the main reasons for spring break travel. Binge drinking and the use of illegal drugs were reported by a significant number of students. Furthermore, high-risk sexual behaviour and the students’ self recognition of being at high risk of acquiring STDs appeared as relevant issues during the study

Un modelo de simulación del Régimen Pensional de Ahorro Individual con Solidaridad en Colombia.

Con la reforma de 1993, en Colombia se dio vía libre a un sistema general de pensiones de carácter mixto, compuesto por el Régimen Solidario de Prima Media con Prestación Definida y el Régimen de Ahorro Individual con Solidaridad. El primero representa el régimen tradicional de carácter público y de beneficio definido, mientras que el segundo corresponde al sistema privado de capitalización individual. Este documento presenta un modelo de simulación que permite proyectar la dinámica del Régimen de Ahorro Individual con Solidaridad. Con este modelo se construye un marco teórico de referencia que determina de forma detallada, el comportamiento de cada una de las variables que intervienen en el funcionamiento de este régimen. El modelo es lo suficientemente simple para que sea fácilmente computable, por lo cual se realiza una aplicación numérica que incorpora la información disponible para Colombia. De esta forma, se proyecta la dinámica del régimen durante las próximas cuatro décadas y se evalúa su comportamiento ante la variación de algunos de sus principales determinantes.Pensiones; Sistema general de pensiones; Régimen de Ahorro Individual con Solidaridad; Fondo de garantía de pensión mínima. Classification JEL: G23; H55; C15.

The flatttening of the yield curve in the United States

Artículo de revistaThe yield curve for US government debt securities has flattened significantly since late 2016 and its slope, while positive, has fallen to levels not observed since before the global financial crisis. The inversion of the yield curve slope is considered, on occasions, as a leading indicator of future recessions. And this, given moreover that the current expansionary phase is proving more durable than previous upturns, has prompted debate on the implications of the recent flattening of the curve. However, as illustrated in this article, unlike previous episodes, in which the flattening of the curve was explained by the behaviour of the interest rates expected at different terms, at this current juncture it is warranted substantially by the compression of term premia. Against this background, the historical relationship between the yield curve and predicted recessions in the US economy might have altere

Vínculo de la teoría práctica para el desarrollo de competencias mediante la asignatura de Física en el Nivel Medio Superior de la UANL.

En esta actividad investigativa se diseñó una estrategia didáctica para la realización de actividades en el salón de clase orientadas al desarrollo de competencias científicas en los estudiantes; para ello se propone el estudio integral del fenómeno físico enfocado a la comprensión total, tomando en cuenta las potencialidades de la Física aunado a las potencialidades de su didáctica. El principal sustento consiste en que en una misma actividad docente: se observe, se modele, se interprete, se describa, se argumente, se interactúe con el fenómeno físico y se verifique lo estudiado. Para ello fue necesario elaborar una serie de experimentos en las áreas de Mecánica, Óptica, Electricidad y Magnetismo, Calor y Fluidos, además se diseñó un software relacionado con algunos de los experimentos para el estudio del fenómeno físico de la manera antes descrita. Se aplicó la estrategia a un grupo de estudiantes de la asignatura de Física de una de las preparatorias de la Universidad Autónoma de Nuevo León y se muestran los resultados de la aplicación