What kind of European Banking Union? Bruegel Policy Contribution [2012/12?]June 25, 2012

This paper discusses the creation of a European Banking Union. First, we discuss questions of design. We highlight seven fundamental choices that decision makers will need to make: Which EU countries should participate in the banking union? To which categories of banks should it apply? Which institution should be tasked with supervision? Which one should deal with resolution? How centralised should the deposit insurance system be? What kind of fiscal backing would be required? What governance framework and political institutions would be needed? In terms of geographical scope, we see the coverage of the banking union of the euro area as necessary and of additional countries as desirable, even though this would entail important additional economic difficulties. The system should ideally cover all banks within the countries included, in order to prevent major competitive and distributional distortions. Supervisory authority should be granted either to both the ECB and a new agency, or to a new agency alone. National supervisors, acting under the authority of the European supervisor, would be tasked with the supervision of smaller banks in accordance with the subsidiarity principle. A European resolution authority should be established, with the possibility of drawing on ESM resources. A fully centralized deposit insurance system would eventually be desirable, but a system of partial reinsurance may also be envisaged at least in a first phase. A banking union would require at least implicit European fiscal backing, with significant political authority and legitimacy. Thus, banking union cannot be considered entirely separately from fiscal union and political union. The most difficult challenge of creating a European banking union lies with the short-term steps towards its eventual implementation. Many banks in the euro area, and especially in the crisis countries, are currently under stress and the move towards banking union almost certainly has significant distributional implications. Yet it is precisely because banks are under such stress that early and concrete action is needed. An overarching principle for such action is to minimize the cost to the tax payers. The first step should be to create a European supervisor that will anchor the development of the future banking union. In parallel, a capability to quickly assess the true capital position of the system’s most important banks should be created, for which we suggest establishing a temporary European Banking Sector Task Force working together with the European supervisor and other authorities. Ideally, problems identified by this process should be resolved by national authorities; in case fiscal capacities would prove insufficient, the European level would take over in the country concerned with some national financial participation, or in an even less likely adverse scenario, in all participating countries at once. This approach would require the passing of emergency legislation in the concerned countries that would give the Task Force the required access to information and, if necessary, further intervention rights. Thus, the principle of fiscal responsibility of respective member states for legacy costs would be preserved to the maximum extent possible, and at the same time, market participants and the public would be reassured that adequate tools are in place to address any eventuality.

Banking Union in the Eurozone and the European Union. CEPS Commentary, 12 June 2012

In this new CEPS Commentary, Jacopo Carmassi, Carmine Di Noia and Stefano Micossi present a rationale and detailed outline for the creation of a banking union in Europe. They argue that it is essential to clearly distinguish between what is needed to address a ‘systemic’ confidence crisis hitting the banking system – which is mainly or solely a eurozone problem – and ‘fair weather’ arrangements to prevent individual bank crises and, when they occur, to manage them in an orderly fashion so as to minimise systemic spillovers and the cost to taxpayers, which is of concern for the entire European Union.

Banking Union in three steps. CEPS Commentary, 12 June 2012

As the banking crisis in the eurozone becomes even more acute, CEPS Chief Executive Karel Lannoo exhorts the EU to not lose further precious time in creating a fully functional bank union, which would entail three main steps: creating a single supervisory authority, a common deposit protection and a harmonised bank resolution and liquidation system.

The roadmap to banking union: a call for consistency. CEPS Commentary, 30 August 2012

The proposal to move to a full banking union in the eurozone means a radical regime shift for the EU, since the European Central Bank will supervise the eurozone banks and effectively end ‘home country rule’. But how this is implemented raises a number of questions and needs close monitoring, explains CEPS CEO Karel Lannoo in this new Commentary.

Banking Union: A Federal Model for the European Union with Prompt Corrective Action. CEPS Policy Brief No. 282, 18 September 2012

The European Commission has published its proposals for the transfer of supervisory responsibilities to the European Central Bank (ECB),1 under Article 127(6) of the TFEU, providing a comprehensive and courageous ‘first step’ towards a European banking Union, the other steps being European deposit insurance and resolution procedures. However, on a number of issues the Commission’s chosen path raises questions that should be brought out in the open and fully recognized before final deliberation by the Council.

Europe's single supervisory mechanism and the long journey towards banking union. Bruegel Policy Contribution 2012/16, 4 October 2012

Problems in the banking system are at the core of the current crisis. The establishment of a banking union is a necessary (though not sufficient) condition for eventual crisis resolution that respects the integrity of the euro. The European Commission’s proposal for the establishment of a Single Supervisory Mechanism and related reform of the European Banking Authority (EBA) do not and cannot create a fully-fledged banking union, but represent a broadly adequate step on the basis of the leaders’ declaration of 29 June 2012 and of the decision to use Article 127(6) of the treaty as legal basis. The proposal rightly endows the European Central Bank (ECB) with broad authority over banks within the supervisory mechanism’s geographical perimeter; however, the status of non-euro area member states willing to participate in this mechanism, and the governance and decision-making processes of the ECB in this respect, call for further elaboration. Further adjustments are also desirable in the proposed reform of the EBA, even though they must probably retain a stopgap character pending the more substantial review planned in 2014.

Banking Union: Ireland vs. Nevada, an illustration of the importance of an integrated banking system. CEPS Commentary, 18 October 2012

Despite their surprising similarities – in size and their housing booms – Ireland and the American state of Nevada sharply parted company when it came to who bore responsibility for bailing out their failed banks when the booms turned to bust. This latest Commentary by Daniel Gros vividly illustrates the importance of that difference and thus the shock-absorbing capacity of an integrated banking system and a banking union.

Attitudes of rural branch managers in Madhya Pradesh, India, toward their role as providers of financial services to the poor

Discussions on banking reforms to reduce financial exclusion have referred little to possible attitudinal constraints, on the part of staff at both branch and institutional levels, inhibiting the provision of financial services to the poor. The research project, funded by the ESCOR (now Social Science Research) Small Grants Committee, has focused on this aspect of financial exclusion. The research commenced in May 2001 and was completed in April 2002. Profiles of the rural bank branch managers, including personal background, professional background and workplace, are presented. Attitudes of managers toward aspects of their work environment and the rural poor are examined, using results from both quantitative and qualitative analysis. Finally, the emerging policy implications are discussed. These include bank reforms to address human resource management, the work environment, intermediate bank management and organization, and the client interface.

Styx grid services: lightweight middleware for efficient scientific workflows

The service-oriented approach to performing distributed scientific research is potentially very powerful but is not yet widely used in many scientific fields. This is partly due to the technical difficulties involved in creating services and workflows and the inefficiency of many workflow systems with regard to handling large datasets. We present the Styx Grid Service, a simple system that wraps command-line programs and allows them to be run over the Internet exactly as if they were local programs. Styx Grid Services are very easy to create and use and can be composed into powerful workflows with simple shell scripts or more sophisticated graphical tools. An important feature of the system is that data can be streamed directly from service to service, significantly increasing the efficiency of workflows that use large data volumes. The status and progress of Styx Grid Services can be monitored asynchronously using a mechanism that places very few demands on firewalls. We show how Styx Grid Services can interoperate with with Web Services and WS-Resources using suitable adapters.

Knowledge intensive processes characteristics and improvement: a banking best practice example

This paper identifies characteristics of knowledge intensive processes and a method to improve their performance based on analysis of investment banking front office processes. The inability to improve these processes using standard process improvement techniques confirmed that much of the process was not codified and depended on tacit knowledge and skills. This led to the use of a semi-structured analysis of the characteristics of the processes via a questionnaire to identify knowledge intensive processes characteristics that adds to existing theory. Further work identified innovative process analysis and change techniques that could generate improvements based on an analysis of their properties and the issue drivers. An improvement methodology was developed to harness a number of techniques that were found to effective in resolving the issue drivers and improving these knowledge intensive processes.

An examination of cross-border strategies in banking

The paper examines the process of bank internationalisation and explores how banks become international organisations and what this involves. It also makes an assessment of the significance of their international operations and determines whether banks are truly global organisations. The empirical data are based on the 60 largest banks in the world and content analysis is used to categorise the information into the eight international strategies of Atamer, Calori, Gustavsson, and Menguzzato-Boulard [Internationalisation strategies. In R. Calori, T. Atamer, & P. Nunes (Eds.), The dynamics of international competition – from practice to theory, strategy series (pp. 162–206). London: Sage (2000)] and Bryan, Fraser, Oppenheim, and Rall [Race for the World strategies to build a great global firm. Boston, MA: Harvard Business School Press (1999)]. The findings suggest that the majority of banks focus on countries or geographic regions in which they have some sort of cultural or economic affinity. Moreover, apart from a relatively small number of very large banks, they are international rather than truly global organisations.

Web Services – för enklare användning av karttjänster

Detta arbete har bedrivits i syfte att kartlägga funktionalitet, teknik och användningsområde gällande Web Services. Innehållet utgör således en teoretisk utvärdering av Web Services, samt tester av grundläggande programmeringslösningar. De frågor arbetet ämnar besvara är hur en Web Services på lämpligt sätt kan baseras på en befintlig tjänst, samt på vilket sätt denna Web Services kan göra aktuell tjänst lättare att använda. Dessutom belyses eventuella problem som kan uppstå i samband med denna Web Services-anpassning. I syfte att presentera ett lösningsförslag på ovan nämnda frågor granskades, via en litteraturstudie, ett antal informatikrelaterade begrepp liksom faktorer förknippade med kommersiell verksamhet på Internet. Erhållen teoretisk fakta analyserades via empiriskt arbete. Resultaten av analysen indikerar att en Web Services baserad på karttjänsten MapService kan innebära vissa fördelar för det aktuella företaget såväl som för deras kunder. Att bredda tjänsteutbudet med en marknadsdominerande standard innebär vissa fördelar för ett företag, inte minst i form av ett potentiellt större kundunderlag. Kundens vinster utgörs främst av för ändamålet utformade toolkits. Dessa hjälpmedel och verktyg underlättar implementationen av aktuell tjänst. Den ansats som här valts, att designa Web Servicen som en parser (tolk/konverterare) vars huvudsakliga syfte är att förmedla kommunikation mellan användare och befintlig tjänst, har vissa fördelar. Främst det faktum att redan befintlig funktionalitet kan utnyttjas. All kommunikation mellan användare och server hanteras av Web Servicen, som enligt denna princip utgör ett nytt gränssnitt med vilket tjänsten MapService kan användas. Till följd av det omfattande teoretiska utredningsarbetet har detta arbete inte genererat några prototyper, annat än på ett teoretiskt plan. Det problem som återstår är att utreda exakt hur ovan nämnda parser skall vara utformad, för att sedan implementera all funktionalitet som en helhet.

Comunicação para prevenção de danos ao consumidor com uso da Internet

Dissertação apresentada ao Programa de Mestrado em Comunicação da Universidade Municipal de São Caetano do Sul - USCS

Comunicação e a prevenção de dados no uso da internet

Introdução: A comunicação bancária tem registrado uso intenso de novas tecnologias e conteúdos, caso do net banking, o que gera novas possibilidades e relações com o cliente bancário. Trata-se de um consumidor que é incentivado a conhecer os serviços oferecidos por meio de novos canais, a visualizar esses atributos, mas se ele detectar restrições informativas ou falhas na comunicação, irá se manifestar de alguma forma. Muitos consumidores lidam com fraudes ou danos causados pelo sistema de acesso virtual disponibilizado pelos bancos. Tal contexto apresenta inovações no sistema de comunicação protagonizado pelos bancos e consumidores midiatizados pela internet. Objetivo: Descrever a comunicação bancária voltada para a prevenção de danos quando do uso de seus websites pelos consumidores. Metodologia: Foram pesquisados os websites dos bancos Bradesco, Itaú e Banco do Brasil, além de pesquisa de opinião com 130 usuários do net banking desses bancos. Resultados: Os bancos reservam em seus websites espaços específicos e não padronizados para a prevenção de danos ao consumidor no uso do net banking, enquanto os clientes usam tais serviços de forma parcial. Conclusões: Os resultados encontrados não podem ser generalizados, servindo o presente estudo como degrau para que outros trabalhos possam aprofundar o objeto de estudo apresentado a fim de dimensionar com maior amplitude e representatividade a gestão da prevenção de danos ao consumidor no contexto do net banking.

O uso comercial da internet por micro, pequenas e médias empresas de Porto Alegre : um estudo exploratório sobre as empresas do trade point Porto Alegre

Uma grande evolução aconteceu no mundo com o surgimento da Internet. Ela causou um espantoso aumento das comunicações, que passaram a ser em tempo real e com uma abrangência mundial. Foi a democratização da informação. A Internet serve como uma grande ferramenta para as empresas, principalmente com a globalização dos mercados, fenômeno que cresce cada dia mais e atinge a todos. A globalização fez com que as organizações se tornassem globais, e a Internet funciona como um elo de ligação entre empresas, fornecedores e consumidores. Este trabalho consistiu na realização de uma pesquisa survey exploratória com o objetivo de verificar e descrever o uso potencial da Internet como ferramenta de auxílio à realização de negócios de caráter global, nas micro, pequenas e médias empresas de Porto Alegre. A amostra das empresas pesquisadas foi extraída do Trade Point Porto Alegre, por ser essa uma entidade que tem por objetivo auxiliar as empresas a realizarem operações globais. Com relação ao mercado global, o trabalho identificou que quase todas as empresas acreditam que ele tenha oportunidades de negócios. Os principais meios para entrar nesse mercado são a participação em feiras e rodadas de negócios, contato pessoal e o Trade Point. A Internet já está disseminada no meio empresarial, todas as empresas já a conhecem, e boa parte das empresas realizam operações que podem ser auxiliadas pela rede, como comunicação, promoção de produtos e acompanhamento pós-venda. Identificou-se que as microempresas são as que menos acreditam no mercado internacional, mas apontaram que a Internet pode ajudá-las em suas atividades. Já as pequenas empresas são as que atuam no mercado internacional e acreditam que a Internet possa ajudá-las em algumas atividades. Por fim, as médias empresas, também atuam no mercado internacional, principalmente com as exportações, e são as que já estão utilizando a Internet. O Trade Point se mostrou um serviço bem requisitado pelas empresas, principalmente as que atuam com o comércio internacional. As principais vantagens citadas foram a centralização de informações e a geração de novos negócios.