THE IMPORTANCE OF BEING PRUDENT: CAPITAL ADEQUACY, FINANCIAL STABILITY AND THE MACROECONOMY
TABLE OF CONTENTS
Introduction 13
Chapter 1: Regulatory overhaul of the banking system 15
1.1. Background of current reform in the banking sector 15
1.2. Regulatory agenda concerning the capital adequacy of banks 20
1.3. Critical review of the academic literature concerning capital
adequacy of banks 27
1.3.1. Criteria for an ideal modelling framework 27
1.3.2. Literature review on prudential policy analysis 30
Chapter 2: Stylised features of the Bulgarian banking system,
policy ...
TABLE OF CONTENTS
Introduction 13
Chapter 1: Regulatory overhaul of the banking system 15
1.1. Background of current reform in the banking sector 15
1.2. Regulatory agenda concerning the capital adequacy of banks 20
1.3. Critical review of the academic literature concerning capital
adequacy of banks 27
1.3.1. Criteria for an ideal modelling framework 27
1.3.2. Literature review on prudential policy analysis 30
Chapter 2: Stylised features of the Bulgarian banking system,
policy influences and links to the wider national and international economy 46
2.1. Financial, economic and policy linkages between the Euro area
and Bulgaria 46
2.2. Evolution of key indicators of liquidity and solvency
of the banking system 52
Chapter 3: A general equilibrium analysis of the transmission
of prudential policies and contingent scenario assessment 59
3.1. Key features and contributions of the theoretical and empirical framework 59
3.2. Model setup and equilibrium conditions on each market 61
3.2.1. Equilibrium on foreign interbank markets 63
3.2.2. Equilibrium on local depositors’ market 66
3.2.3. Equilibrium on local loans’ market 66
3.2.4. Banks’ optimal decision-making process 67
3.2.5. Households’ decision-making process 69
3.2.6. Aggregate equilibrium condition 71
3.3. Numerical solution and evaluation: data description, method
and procedure 72
3.4. Analysis of prudential policies and contingency scenarios 77
3.4.1. Transmission of a decline in the key interest rate
on the refinancing operations of the foreign
monetary authority 78
3.4.2. Transmission of market pressure to report higher capital
adequacy ratios 80
3.4.3. Transmission of a decline in the capital adequacy ratio
of all banks owing to tighter definition of capital 84
3.4.4. Contingency scenario: transmission of a decline
in the capital adequacy ratio in one of the banks owing
to a negative shock 87
3.4.5. Contingency scenarios: transmission of external shocks
to the real economy 92
3.4.6. Contingency scenarios: transmission of external shocks
to the deposit base 96
Conclusion 98
References 102
Abstract 109
List of Figures
Figure 1. Real GDP growth in the Euro area (1999Q1-2016Q1) 48
Figure 2. HICP inflation in the Euro area (1999Q1-2016Q1) 49
Figure 3. Real GDP growth in Bulgaria (1999Q1-2016Q1) 50
Figure 4. HICP inflation in Bulgaria (1999Q1-2016Q1) 51
Figure 5. Ratio of bank equity to total assets (1999Q1-2016Q1) 54
Figure 6. Bank loans to corporations and households
(1999Q1-2016Q1) 56
Figure 7. Bank loans to total assets (1999Q1-2016Q1) 57
Figure 8. Bank deposits to total liabilities (1999Q1-2016Q1) 58
Figure 9. Model’s micro-structure 63
List of Tables
Table 1. Stylised representation of a bank balance sheet 63
Table 2. Initial equilibrium: bank balance sheet variables
and market interest rates 75
Table 3. Values of main regulatory and monetary policy parameters 76
Table 4. Banks' risk preference parameters evaluated given initial equilibrium 76
Table 5. Decline in the key policy interest rate of the foreign monetary authority 80
Table 6. Transmission of increased reputational effect from
reporting higher capital adequacy 83
Table 7. Decline in regulatory capital of all banks 86
Table 8. Decline in the regulatory capital of bank τ 90
Table 9. Decline in the regulatory capital of bank δ 91
Table 10. Decline in the regulatory capital of bank γ 92
Table 11. Externally generated adverse shock
to the wider economy in the ‘bad’ state of nature 94
Table 12. Externally generated favourable shock
to the wider economy in the ‘bad’ state of nature 95
Table 13. Contingency scenario: an exogenous inflow of deposits
to bank τ 97
ABSTRACT
This monograph analyses the systemic impact of forthcoming provisions under Basel III related to banks’ capital adequacy in response to the global economic crisis. The study considers multiple policy channels which aim to achieve substantially higher capital adequacy standards, such as regulatory requirements, market-driven pressures and supervisory contingency stress tests of the banking system, as well as individual banking institutions. The analysis is based on detailed examination of current regulatory overhaul proposals and policy dilemmas, a critical review of the empirical and theoretical literature linking macroeconomics and financial intermediation and a quantitative impact assessment in the case of the Bulgarian banking system. The latter includes a dynamic identification of structural links between Bulgaria and the Euro area and an application of a general equilibrium model, incorporating financial intermediation, heterogeneity and default risk used for policy evaluation and prudential systemic stress tests.
MANAGEMENT OF INFORMATION TECHNOLOGY IN UNIVERSITIES
CONTENTS
Introduction
Chapter
Challenges facing the management of universities
1. Key trends in the development of higher education
2. Challenges facing the management of universities
3. Penetration of information technology in higher education
Chapter
Strategic management of information technology in universities
1. Strategic management and business architecture of a university
2. Conceptual framework of IT management in universities
3. Place and interaction of the IT ...
CONTENTS
Introduction
Chapter
Challenges facing the management of universities
1. Key trends in the development of higher education
2. Challenges facing the management of universities
3. Penetration of information technology in higher education
Chapter
Strategic management of information technology in universities
1. Strategic management and business architecture of a university
2. Conceptual framework of IT management in universities
3. Place and interaction of the IT department in a university’s
organizational structure
Chapter
State and problems facing the management of information
technology in universities
1. General characteristics of the surveyed universities
and respondents
2. Strategic management of IT processes and technology
in universities
3. Structure and responsibilities of the IT department
4. Trends in the use of information and educational technologies and services in universities
5. Financial management of information technology and services in universities
Conclusion
References
ABSTRACT
The modern understanding of IT management of the processes in universities involves the totality of organizational structure, institutional interactions and appropriate management practices that create a prerequisite for effective management of information technology and infrastructure in universities so that they can contribute to the smooth running of the basic (education and science) and supporting (administrative and business) processes in the organization in order to achieve the strategic and tactical goals and objectives of the institution, the adding of value and the acquisition of strategic advantages in taking well-considered levels of risks. Unlike the activities of traditional companies, where the interactions in this process are mainly between the business and IT management, in the sphere of higher education there emerge new aspects in these interactions – academic management and the role of some of the users, in particular – lecturers, is highly raised as a result of the institutional traditions and principles of academic autonomy. This makes it possible to propose the creation of a completely new management model of ‘academic monarchy’, in which the decisions related to the IT processes and resources of a university are made by the senior academic management, excluding entirely the possibility that IT managers make independent decisions, and their function is brought to implementing the decisions made.
Despite being new for the university managers, the concept of ‘architecture of the enterprise’ is gaining more grounds among the senior academic management as it allows the balancing of institutional, business and IT goals of the organization within the process of turning the institutional vision and mission into long-term policies and strategies, complied with the specifics and changes in the surrounding environment and resource provision, contributing to the pursuit and realization of the organization’s goals and controlling their achievement. Taking into account the specifics of modern universities this concept should be extended by creating a new hierarchical element (academic architecture), building on the classical business architecture of the institution and combining the educational and scientific architecture specific to universities.
The results of the international survey ‘Challenges facing the IT management in universities’, carried out among the higher schools in Central and Eastern Europe between 31 October and 30 November 2016, showed that in spite of the high degree of development and distribution of information technologies in the Balkan universities, the IT managers expect an increase in the demand and use of IT services in universities, and among the main challenges of digital economy they point out the growth in competency-based education, electronic research and the role of the institutional brand. In Bulgaria both the reconsidering of the business model and the role of the innovative educational spaces are also highlighted. The current use of information technologies in the educational process is related to improving the process of mastering knowledge by students and there is an expressed preference to the hybrid form of education to the entirely online education. Among the educational innovations, which will most positively affect higher education on the Balkans in the future, are personalized adaptive learning, hybrid courses and open educational resources. In purely technological terms, the expectations for the changes setting in are related to the penetration of mobile technologies and social networks, business modernization, internet of things, managing and storing data and cloud services, and the Bulgarian IT managers link their professional challenges both to cloud computing and the processes of optimizing the server infrastructure through its virtualization and the growing need for ensuring the security of information.
Along with that, the financial management of the IT processes in universities is characterized by high centralization, limited target funds, lack of specialized IT budget and insufficient participation of IT managers in determining and prioritizing the IT expenses, the key financial factor being the low purchase price. What is worrying is that a large number of universities do not use financial measures to analyze and manage their IT budgets, and as regards the assessment of investment projects there is generally an extremely low use of the classical financial indicators.
CUSTOMS CONTROL ON AUTHORIZED ECONOMIC OPERATORS
CONTENTS
Introduction
CHAPTER ONE. Essential characteristics of customs facilitation
1. Nature of simplified customs procedures
2. Types of customs formalities facilitation
3. Benefits of introducing customs facilitation
CHAPTER TWO. Applying the Approved Economic Operator
status (AEO)
1. Applying the ÀÅÎ status in the Member States of the World
Customs Organization
2. Applying the ÀÅÎ status in the Member States of the European Union
3. Applying the ÀÅÎ status in the ...
CONTENTS
Introduction
CHAPTER ONE. Essential characteristics of customs facilitation
1. Nature of simplified customs procedures
2. Types of customs formalities facilitation
3. Benefits of introducing customs facilitation
CHAPTER TWO. Applying the Approved Economic Operator
status (AEO)
1. Applying the ÀÅÎ status in the Member States of the World
Customs Organization
2. Applying the ÀÅÎ status in the Member States of the European Union
3. Applying the ÀÅÎ status in the Republic of Bulgaria
CHAPTER THREE. Technological features of customs control
on Approved Economic Operators
1. Forms of customs control on individuals having an AEO status
2. Criteria for granting the Authorized Economic Operator status
3. Control procedures in granting and applying the AEO status
CHAPTER FOUR. Problems of customs control on Authorized Economic Operators and opportunities for improving it
1. Problems arising from the specific characteristics of the
Economic Operators activities
2. Problems arising from the state of customs control within
the AEO status
3. Opportunities for improving the customs control on Authorized Economic Operators
Conclusion
References
Annexes
ABSTRACT
This monograph justifies the role of the simplified customs formalities in the context of the Authorized Economic Operator (AEO) concept and the need to apply and improve specific control procedures, covering the activities of individuals having such a status. The search for a balance between businesses’ desire to reduce their administrative burden and the functions and tasks assigned to the customs authorities highlight the need to develop modern and effective control mechanisms that guarantee the interests of the society as a whole. In order to address these issues, the different parts of the study perform the following tasks:
First. The theoretical aspects of simplified customs procedures, the variability in using them and the related benefits for customs administrations and for economic operators are clarified.
Second. A review is made of the practical manifestation of simplified customs procedures in the context of the concept of AEO status among some of the leading foreign trade partners of the EU in the EU Member States and in Bulgaria.
Third. From a technological point of view, the main aspects of the customs control in Bulgaria regarding the individuals having an AEO status are outlined.
Fourth.Some of the key issues and significant risks accompanying the application of the AEO status are outlined and measures for overcoming them are proposed.
Based on the issues discussed in the monograph, the research thesis drawn and justified is that, due to their specific application, the customs facilitation within the AEO status presupposes the development of a separate technology of customs control, which allows the correct manifestation of its core functions and on this basis leads to increasing its effectiveness.
