The effects of information and communication technologies on the banking sector and the payments system

This dissertation studies the effects of Information and Communication Technologies (ICT) on the banking sector and the payments system. It provides insight into how technology-induced changes occur, by exploring both the nature and scope of main technology innovations and evidencing their economic implications for banks and payment systems. Some parts in the dissertation are descriptive. They summarise the main technological developments in the field of finance and link them to economic policies. These parts are complemented with sections of the study that focus on assessing the extent of technology application to banking and payment activities. Finally, it includes also some work which borrows from the economic literature on banking. The need for an interdisciplinary approach arises from the complexity of the topic and the rapid path of change to which it is subject. The first chapter provides an overview of the influence of developments in ICT on the evolution of financial services and international capital flows. We include main indicators and discuss innovation in the financial sector, exchange rates and international capital flows. The chapter concludes with impact analysis and policy options regarding the international financial architecture, some monetary policy issues and the role of international institutions. The second chapter is a technology assessment study that focuses on the relationship between technology and money. The application of technology to payments systems is transforming the way we use money and, in some instances, is blurring the definition of what constitutes money. This chapter surveys the developments in electronic forms of payment and their relationship to the banking system. It also analyses the challenges posed by electronic money for regulators and policy makers, and in particular the opportunities created by two simultaneous processes: the Economic and Monetary Union and the increasing use of electronic payment instruments. The third chapter deals with the implications of developments in ICT on relationship banking. The financial intermediation literature explains relationship banking as a type of financial intermediation characterised by proprietary information and multiple interactions with customers. This form of banking is important for the financing of small and medium-sized enterprises. We discuss the effects of ICT on the banking sector as a whole and then apply these developments to the case of relationship banking. The fourth chapter is an empirical study of the effects of technology on the banking business, using a sample of data from the Spanish banking industry. The design of the study is based on some of the events described in the previous chapters, and also draws from the economic literature on banking. The study shows that developments in information management have differential effects on wholesale and retail banking activities. Finally, the last chapter is a technology assessment study on electronic payments systems in Spain and the European Union. It contains an analysis of existing payment systems and ongoing or planned initiatives in Spain. It forms part of a broader project comprising a series of country-specific analyses covering ten European countries. The main issues raised across the countries serve as the starting point to discuss implications of the development of electronic money for regulation and policies, and in particular, for monetary-policy making.

The effect of flow field & geometry on the dynamic contact angle

A number of recent experiments suggest that, at a given wetting speed, the dynamic contact angle formed by an advancing liquid-gas interface with a solid substrate depends on the flow field and geometry near the moving contact line. In the present work, this effect is investigated in the framework of an earlier developed theory that was based on the fact that dynamic wetting is, by its very name, a process of formation of a new liquid-solid interface (newly “wetted” solid surface) and hence should be considered not as a singular problem but as a particular case from a general class of flows with forming or/and disappearing interfaces. The results demonstrate that, in the flow configuration of curtain coating, where a liquid sheet (“curtain”) impinges onto a moving solid substrate, the actual dynamic contact angle indeed depends not only on the wetting speed and material constants of the contacting media, as in the so-called slip models, but also on the inlet velocity of the curtain, its height, and the angle between the falling curtain and the solid surface. In other words, for the same wetting speed the dynamic contact angle can be varied by manipulating the flow field and geometry near the moving contact line. The obtained results have important experimental implications: given that the dynamic contact angle is determined by the values of the surface tensions at the contact line and hence depends on the distributions of the surface parameters along the interfaces, which can be influenced by the flow field, one can use the overall flow conditions and the contact angle as a macroscopic multiparametric signal-response pair that probes the dynamics of the liquid-solid interface. This approach would allow one to investigate experimentally such properties of the interface as, for example, its equation of state and the rheological properties involved in the interface’s response to an external torque, and would help to measure its parameters, such as the coefficient of sliding friction, the surface-tension relaxation time, and so on.

Probing the large-scale topology of the heliospheric magnetic field using Jovian electrons

Jupiter’s magnetosphere acts as a point source of near-relativistic electrons within the heliosphere. In this study, three solar cycles of Jovian electron data in near-Earth space are examined. Jovian electron intensity is found to peak for an ideal Parker spiral connection, but with considerable spread about this point. Assuming the peak in Jovian electron counts indicates the best magnetic connection to Jupiter, we find a clear trend for fast and slow solar wind to be over- and under-wound with respect to the ideal Parker spiral, respectively. This is shown to be well explained in terms of solar wind stream interactions. Thus, modulation of Jovian electrons by corotating interaction regions (CIRs) may primarily be the result of changing magnetic connection, rather than CIRs acting as barriers to cross-field diffusion. By using Jovian electrons to remote sensing magnetic connectivity with Jupiter’s magnetosphere, we suggest that they provide a means to validate solar wind models between 1 and 5 AU, even when suitable in situ solar wind observations are not available. Furthermore, using Jovian electron observations as probes of heliospheric magnetic topology could provide insight into heliospheric magnetic field braiding and turbulence, as well as any systematic under-winding of the heliospheric magnetic field relative to the Parker spiral from footpoint motion of the magnetic field.

Conservation of open solar magnetic flux and the floor in the heliospheric magnetic field

The near-Earth heliospheric magnetic field intensity, |B|, exhibits a strong solar cycle variation, but returns to the same ``floor'' value each solar minimum. The current minimum, however, has seen |B| drop below previous minima, bringing in to question the existence of a floor, or at the very least requiring a re-assessment of its value. In this study we assume heliospheric flux consists of a constant open flux component and a time-varying contribution from CMEs. In this scenario, the true floor is |B| with zero CME contribution. Using observed CME rates over the solar cycle, we estimate the ``no-CME'' |B| floor at ~4.0 +/- 0.3 nT, lower than previous floor estimates and below |B| observed this solar minimum. We speculate that the drop in |B| observed this minimum may be due to a persistently lower CME rate than the previous minimum, though there are large uncertainties in the supporting observational data.

Suprathermal electron evolution in a Parker spiral magnetic field

Suprathermal electrons (>70 eV) form a small fraction of the total solar wind electron density but serve as valuable tracers of heliospheric magnetic field topology. Their usefulness as tracers of magnetic loops with both feet rooted on the Sun, however, most likely fades as the loops expand beyond some distance owing to scattering. As a first step toward quantifying that distance, we construct an observationally constrained model for the evolution of the suprathermal electron pitch-angle distributions on open field lines. We begin with a near-Sun isotropic distribution moving antisunward along a Parker spiral magnetic field while conserving magnetic moment, resulting in a field-aligned strahl within a few solar radii. Past this point, the distribution undergoes little evolution with heliocentric distance. We then add constant (with heliocentric distance, energy, and pitch angle) ad-hoc pitch-angle scattering. Close to the Sun, pitch-angle focusing still dominates, again resulting in a narrow strahl. Farther from the Sun, however, pitch-angle scattering dominates because focusing is effectively weakened by the increasing angle between the magnetic field direction and intensity gradient, a result of the spiral field. We determine the amount of scattering required to match Ulysses observations of strahl width in the fast solar wind, providing an important tool for inferring the large-scale properties and topologies of field lines in the interplanetary medium. Although the pitch-angle scattering term is independent of energy, time-of-flight effects in the spiral geometry result in an energy dependence of the strahl width that is in the observed sense although weaker in magnitude.

The heliospheric magnetic field over the Hale cycle

The concept that open magnetic flux of the Sun (rooted with one and only one footpoint at the Sun) is a conserved quantity is taking root in the heliospheric community. Observations show that the Sun's open magnetic flux returns to the baseline from one solar minimum to the next. The temporary enhancement in the 1 AU heliospheric magnetic flux near solar maximum can be accounted for by the temporary creation of closed magnetic flux (with two footpoints at the Sun) during the ejection of coronal mass ejections (CMEs), which are more frequent near solar maximum. As a part of the International Heliophysical Year activities, this paper reviews two recently discussed consequences of open flux conservation: the reversal of open magnetic flux over the solar cycle driven by Coronal Mass Ejections and the impacts of open flux conservation on the global structure of the heliospheric magnetic field. These studies demonstrate the inherent linkages between coronal mass ejections, footpoint motions back at the Sun, and the global structure and evolution of the heliospheric magnetic field.

Characteristic magnetic field and speed properties of interplanetary coronal mass ejections and their sheath regions

Prediction of the solar wind conditions in near-Earth space, arising from both quasi-steady and transient structures, is essential for space weather forecasting. To achieve forecast lead times of a day or more, such predictions must be made on the basis of remote solar observations. A number of empirical prediction schemes have been proposed to forecast the transit time and speed of coronal mass ejections (CMEs) at 1 AU. However, the current lack of magnetic field measurements in the corona severely limits our ability to forecast the 1 AU magnetic field strengths resulting from interplanetary CMEs (ICMEs). In this study we investigate the relation between the characteristic magnetic field strengths and speeds of both magnetic cloud and noncloud ICMEs at 1 AU. Correlation between field and speed is found to be significant only in the sheath region ahead of magnetic clouds, not within the clouds themselves. The lack of such a relation in the sheaths ahead of noncloud ICMEs is consistent with such ICMEs being skimming encounters of magnetic clouds, though other explanations are also put forward. Linear fits to the radial speed profiles of ejecta reveal that faster-traveling ICMEs are also expanding more at 1 AU. We combine these empirical relations to form a prediction scheme for the magnetic field strength in the sheaths ahead of magnetic clouds and also suggest a method for predicting the radial speed profile through an ICME on the basis of upstream measurements.

The infrared spectrum, equilibrium structure and harmonic and anharmonic force field of thioborine, HBS

Infrared spectra of the two stretching fundamentals of both HBS and DBS have been observed, using a continuous flow system through a multiple reflection long path cell at a pressure around 1 Torr and a Nicolet Fourier Transform spectrometer with a resolution of about 0•1 cm-1. The v3 BS stretching fundamental of DBS, near 1140 cm-1, is observed in strong Fermi resonance with the overtone of the bend 2v2. The bending fundamental v2 has not been observed and must be a very weak band. The analysis of the results in conjunction with earlier work gives the equilibrium structure (re(BH) = 1•1698(12) , re(BS) = 1•5978(3) ) and the harmonic and anharmonic force field.

Developments in near infrared spectroscopy

Vibrational spectroscopy at high excitation is an important research frontier for two reasons. Firstly, the near infrared is proving to be an important area for the analytical applications of spectroscopy, and we would therefore like to understand how the spectra we observe relate to the molecular structure of the absorbing species. Secondly, there is a fundamental interest in understanding molecular dynamics and energy flow within a polyatomic molecule at high excitation, because this is the boundary between spectroscopy and chemistry through which we try to understand the details of a chemical reaction. In this presentation I shall survey recent progress in this field.

Short communication: Suppressor of cytokine signaling-2 mRNA increases after parturition in the liver of dairy cows

After parturition, the somatotropic axis of the dairy cow is uncoupled, partly because of reduced concentration of liver-specific GH receptor (GHR) 1A. Estradiol-17 beta (E-2) concentrations increase at parturition and E-2 upregulates suppressors of cytokine signaling-2 (SOCS-2) mRNA expression, potentially inhibiting GH signaling. Therefore, we hypothesized that SOCS-2 mRNA is upregulated after parturition. Multiparous Holstein cows (n = 18) were dried off 45 d before expected parturition and fed diets to meet nutrient requirements at ad libitum or limited dry matter intake during the dry period. All cows were fed the same diet ad libitum from calving until 4 wk after parturition. Blood samples were collected weekly and more frequently near parturition. Liver biopsies obtained at -21, -7, 2, and 28 d relative to parturition were assessed for SOCS-2 and GHR 1A mRNA by quantitative real-time reverse-transcription PCR. The relative amount of SOCS-2 mRNA increased after parturition with both treatments and was greater on d 2 for cows limit-fed during the dry period compared with cows fed at ad libitum dry matter intake. Plasma E2 concentrations increased on d -13, -5 and 1 relative to parturition and the increases were greater in limit-fed cows. Plasma GH concentration was greater for limit-fed cows and increased after parturition in all cows. The amount of GHR 1A mRNA did not differ between diets but decreased on d 2. In addition to reduced GHR 1A, increased SOCS-2 mRNA after parturition, perhaps because of increased E-2, may further uncouple GH signaling in the liver of the transition dairy cow.

The use of wireless data communication and body sensing devices to evaluate occupants' comfort in buildings

Physiological parameters measured by an embedded body sensor system were demonstrated to respond to changes of the air temperature in an office environment. The thermal parameters were monitored with the use of a wireless sensor system that made possible to turn any existing room into a field laboratory. Two human subjects were monitored over daily activities and at various steady-state thermal conditions when the air temperature of the room was altered from 22-23°C to 25-28°C. The subjects indicated their thermal feeling on questionnaires. The measured skin temperature was distributed close to the calculated mean skin temperature corresponding to the given activity level. The variation of Galvanic Skin Response (GSR) reflected the evaporative heat loss through the body surfaces and indicated whether sweating occurred on the subjects. Further investigations are needed to fully evaluate the influence of thermal and other factors on the output given by the investigated body sensor system.

Magnetic discontinuities in the near-earth solar wind: evidence of in-transit turbulence or remnants of coronal structure?

Fluctuations in the solar wind plasma and magnetic field are well described by the sum of two power law distributions. It has been postulated that these distributions are the result of two independent processes: turbulence, which contributes mainly to the smaller fluctuations, and crossing the boundaries of flux tubes of coronal origin, which dominates the larger variations. In this study we explore the correspondence between changes in the magnetic field with changes in other solar wind properties. Changes in density and temperature may result from either turbulence or coronal structures, whereas changes in composition, such as the alpha-to-proton ratio are unlikely to arise from in-transit effects. Observations spanning the entire ACE dataset are compared with a null hypothesis of no correlation between magnetic field discontinuities and changes in other solar wind parameters. Evidence for coronal structuring is weaker than for in-transit turbulence, with only ∼ 25% of large magnetic field discontinuities associated with a significant change in the alpha-to-proton ratio, compared to ∼ 40% for significant density and temperature changes. However, note that a lack of detectable alpha-to-proton signature is not sufficient to discount a structure as having a solar origin.

Centennial changes in the heliospheric magnetic field and open solar flux: the consensus view from geomagnetic data and cosmogenic isotopes and its implications

Svalgaard and Cliver (2010) recently reported a consensus between the various reconstructions of the heliospheric field over recent centuries. This is a significant development because, individually, each has uncertainties introduced by instrument calibration drifts, limited numbers of observatories, and the strength of the correlations employed. However, taken collectively, a consistent picture is emerging. We here show that this consensus extends to more data sets and methods than reported by Svalgaard and Cliver, including that used by Lockwood et al. (1999), when their algorithm is used to predict the heliospheric field rather than the open solar flux. One area where there is still some debate relates to the existence and meaning of a floor value to the heliospheric field. From cosmogenic isotope abundances, Steinhilber et al. (2010) have recently deduced that the near-Earth IMF at the end of the Maunder minimum was 1.80 ± 0.59 nT which is considerably lower than the revised floor of 4nT proposed by Svalgaard and Cliver. We here combine cosmogenic and geomagnetic reconstructions and modern observations (with allowance for the effect of solar wind speed and structure on the near-Earth data) to derive an estimate for the open solar flux of (0.48 ± 0.29) × 1014 Wb at the end of the Maunder minimum. By way of comparison, the largest and smallest annual means recorded by instruments in space between 1965 and 2010 are 5.75 × 1014 Wb and 1.37 × 1014 Wb, respectively, set in 1982 and 2009, and the maximum of the 11 year running means was 4.38 × 1014 Wb in 1986. Hence the average open solar flux during the Maunder minimum is found to have been 11% of its peak value during the recent grand solar maximum.

Assessment of the consistency of H2O line intensities over the near-infrared using sun-pointing ground-based Fourier transform spectroscopy

We report on the consistency of water vapour line intensities in selected spectral regions between 800–12,000 cm−1 under atmospheric conditions using sun-pointing Fourier transform infrared spectroscopy. Measurements were made across a number of days at both a low and high altitude field site, sampling a relatively moist and relatively dry atmosphere. Our data suggests that across most of the 800–12,000 cm−1 spectral region water vapour line intensities in recent spectral line databases are generally consistent with what was observed. However, we find that HITRAN-2008 water vapour line intensities are systematically lower by up to 20% in the 8000–9200 cm−1 spectral interval relative to other spectral regions. This discrepancy is essentially removed when two new linelists (UCL08, a compilation of linelists and ab-initio calculations, and one based on recent laboratory measurements by Oudot et al. (2010) [10] in the 8000–9200 cm−1 spectral region) are used. This strongly suggests that the H2O line strengths in the HITRAN-2008 database are indeed underestimated in this spectral region and in need of revision. The calculated global-mean clear-sky absorption of solar radiation is increased by about 0.3 W m−2 when using either the UCL08 or Oudot line parameters in the 8000–9200 cm−1 region, instead of HITRAN-2008. We also found that the effect of isotopic fractionation of HDO is evident in the 2500–2900 cm−1 region in the observations.