Predicting the past: Understanding the causes of bank distress in the Netherlands in the 1920s

Why do some banks fail in financial crises while others survive? This article answers this question by analysing the effect of the Dutch financial crisis of the 1920s on 142 banks, of which 33 failed. We find that choices of balance sheet composition and product market strategy made in the lead-up to the crisis had a significant impact on banks’ subsequent chances of experiencing distress. We document that high-risk banks – those operating highly-leveraged portfolios and attracting large quantities of deposits – were more likely to fail. Branching and international activities also increased banks’ default probabilities. We measure the effects of board interlocks, which have been characterized in the extant literature as contributing to the Dutch crisis. We find that boards mattered: failing banks had smaller boards, shared directors with smaller and very profitable banks and had a lower concentration of interlocking directorates in non-financial firms.

The role of salt and shear on the storage and assembly of spider silk proteins

Major ampullate silk fibers of orb web-weaving spiders have impressive mechanical properties due to the fact that the underlying proteins partially fold into helical/amorphous structures, yielding relatively elastic matrices that are toughened by anisotropic nanoparticulate inclusions (formed from stacks of beta-sheets of the same proteins). In vivo the transition from soluble protein to solid fibers involves a combination of chemical and mechanical stimuli (such as ion exchange, extraction of water and shear forces). Here we elucidate the effects of such stimuli on the in vitro aggregation of engineered and recombinantly produced major ampullate silk-like proteins (focusing on structure-function relationships with respect to their primary structures), and discuss their relevance to the storage and assembly of spider silk proteins in vivo. (C) 2009 Elsevier Inc. All rights reserved.

Forgoing primacy: Damaging democratic policing in the West Bank

Since the Oslo Accords were signed between Israel and the Palestinian Liberation Organization (PLO) in September 1993, the international community has supported civil policing programmes. It has done so as part of its development commitments to Palestinian state-building. Such programmes were, until the outbreak of the second Intifada in 2000, largely regarded as successful in terms of supporting the establishment of a Palestinian civil police (PCP). Such programmes were essentially Western imported models which loosely mixed community and public order policing approaches. With re-engagement in the Palestinian security sector (PSS) in the West Bank in 2007, the international community has once again sought to play a major role in PSS reform. This role includes supporting rehabilitation and retraining of the PCP as a principal institution of state-building. Such activities alongside the so-called transformation efforts within the wider realm of the PSS have re-established as their goal law and order. Within the transformation agenda, there are inherent demands with respect to Israel and the Palestinian National Authority's security and counterterrorism agendas. This analysis examines these activities, and accompanying political intent to contend that such approaches are undermining principles of democratic policing including civil police primacy (CPP). CPP reinforces police universality and means supporting rule of law by putting security under governmental control with proper mechanisms of accountability. This article argues that support to the security sector in the West Bank has increasingly only paid lip service or sought to subvert normative approaches to democratic policing.

Effect of Impeller Design on Homogeneity, Size and Strength of Pharmaceutical Granules produced by High Shear Wet Granulation

Small mixer impeller design is not tailored for granulation because impellers are intended for a wide range of processes. The aim of this research was to evaluate the performances of several impellers to provide guidance on the selection and design for the purposes of granulation. Lactose granules were produced using wet granulation with water as a binder. A Kenwood KM070 mixer was used as a standard apparatus and five impeller designs with different shapes and surface areas were used. The efficacy of granulate formation was measured by adding an optically sensitive tracer to determine variations in active ingredient content across random samples of granules from the same size classes. It was found that impeller design influenced the homogeneity of the granules and therefore can affect final product performance. The variation in active ingredient content across granules of differing size was also investigated. The results show that small granules were more potent than larger granules.

Does Basel Compliance Matter for Bank Performance ?

The global financial crisis underscored the importance of regulation and supervision to a well functioning banking system that efficiently channels financial resources into investment. In this paper, we contribute to the ongoing policy debate by assessing whether compliance with international regulatory standards and protocols enhances bank operating efficiency. We focus specifically on the adoption of international capital standards and the Basel Core Principles for Effective Bank Supervision (BCP). The relationship between bank efficiency and regulatory compliance is investigated using the (Simar and Wilson 2007) double bootstrapping approach on an international sample of publicly listed banks. Our results indicate that overall BCP compliance, or indeed compliance with any of its individual chapters, has no association with bank efficiency.

A low-cost digital image correlation technique for characterising the shear deformation of fabrics for draping studies

A novel digital image correlation (DIC) technique has been developed to track changes in textile yarn orientations during shear characterisation experiments, requiring only low-cost digital imaging equipment. Fabric shear angles and effective yarn strains are calculated and visualised using this new DIC technique for bias extension testing of an aerospace grade, carbon-fibre reinforcement material with a plain weave architecture. The DIC results are validated by direct measurement, and the use of a wide bias extension sample is evaluated against a more commonly used narrow sample. Wide samples exhibit a shear angle range 25% greater than narrow samples and peak loads which are 10 times higher. This is primarily due to excessive yarn slippage in the narrow samples; hence, the wide sample configuration is recommended for characterisation of shear properties which are required for accurate modelling of textile draping.

Shocks in unmagnetized plasma with a shear flow: Stability and magnetic field generation

A pair of curved shocks in a collisionless plasma is examined with a two-dimensional particle-in-cell simulation. The shocks are created by the collision of two electron-ion clouds at a speed that exceeds everywhere the threshold speed for shock formation. A variation of the collision speed along the initially planar collision boundary, which is comparable to the ion acoustic speed, yields a curvature of the shock that increases with time. The spatially varying Mach number of the shocks results in a variation of the downstream density in the direction along the shock boundary. This variation is eventually equilibrated by the thermal diffusion of ions. The pair of shocks is stable for tens of inverse ion plasma frequencies. The angle between the mean flow velocity vector of the inflowing upstream plasma and the shock's electrostatic field increases steadily during this time. The disalignment of both vectors gives rise to a rotational electron flow, which yields the growth of magnetic field patches that are coherent over tens of electron skin depths.

Bank Failures of the 1990s::An Exploratory Analysis

Past research has frequently attributed the incidence of bank failures to macroeconomic cycles and/or downturns in the regional economy. More recent analyses have suggested that the incidence and severity of bank failures can be linked to governance failures, which may be preventable through more stringent disclosure and auditing requirements. Using data on bank failures during the years 1991 to 1997, for the US, Canada, the UK and Germany, this study examines the relationship between institutional characteristics of national legal and auditing systems and the incidence of bank failures. In the second part of our analysis we then examined the relationship between the same institutional variables and the severity of bank failures.
The first part of our study notes a significant correlation between the law and order tradition (‘rule of law’) of a national legal system and the incidence of bank failures. Nations which were assigned high 'rule of law’ scores by country risk guides appear to have been less likely to experience bank failures. Another variable which appears to impact on bank failure rates is the ‘risk of contract repudiation’. Countries with a greater ‘risk of contract repudiation’ appear to be more likely to experience bank failures. We suggest that this may be due to a greater ex ante protection of stakeholders in countries where contract enforcement is more stringent.
The results of the second part of our study are less clear cut. However, there appears to be a significant correlation between the amount paid out by national deposit insurers (our proxy for the severity of bank failures) and the macroeconomic variable 'GDP change'. Here our findings follow the conventional wisdom; with greater amounts of deposit insurance funds being paid during economic downturns (i.e. low or negative GDP 'growth' correlates with high amounts of deposit insurance being paid out). A less pronounced relationship with the severity of bank failures can also be established for the institutional variables ' accounting standards' as well as 'risk of contract repudiation'. Countries with more stringent ‘accounting standards’ and a low ‘risk of contract repudiation’ appear to have been less prone to severe bank failures.

Improved model for interfacial stresses accounting for the effect of shear deformation in plated beams

A significant increase in strength and performance of reinforced concrete, timber and metal beams may be achieved by adhesively bonding a fibre reinforced polymer composite, or metallic such as steel plate to the tension face of a beam. One of the major failure modes in these plated beams is the debonding of the plate from the original beam in a brittle manner. This is commonly attributed to the interfacial stresses between the adherends whose quantification has led to the development of many analytical solutions over the last two decades. The adherends are subjected to axial, bending and shear deformations. However, most analytical solutions have neglected the effect of shear deformation in adherends. Few solutions consider this effect approximately but are limited to one or two specific loading conditions. This paper presents a more rigorous solution for interfacial stresses in plated beams under an arbitrary loading with the shear deformation of the adherends duly considered in closed form using Timoshenko’s beam theory. The solution is general to linear elastic analysis of prismatic beams of arbitrary cross section under arbitrary loading with a plate of any thickness bonded either symmetrically or asymmetrically with respect to the span of the beam.