Assessing the Single Supervisory Mechanism: passing the point of no return for Europe's banking union. Egmont Paper No. 58, June 2013

From the Executive Summary. Europe’s financial and sovereign debt crises have become increasingly interconnected. In order to break the negative feedback loop between the two, the EU has decided to create a common supervisory framework for the banking sector: the Single Supervisory Mechanism (SSM). The SSM will involve a supervisory system including both the national supervisors and the European Central Bank (ECB). By endowing the ECB with supervisory authority over a major part of the European banking sector, the SSM’s creation will result in a shake-up of the way in which the European financial sector is being supervised. Under the right circumstances, this could be a major step forward in addressing Europe’s interconnected crises.

Puukaupan säännöt : Yksityismetsänomistajien ja metsäteollisuuden puukauppa Itä-Suomessa 1919 - 1939

The Finnish forest industry bought more than half of the timber used in factories and sawmills in the 1930s from non-industrial private forests (NIPF). This research investigates the rules conformed to this timber trade. The main research questions are: what were the rules that influenced the timber trade; and by whom they were set up? Attention is also paid to the factors which advanced the forest owners’ negotiation possibilities. A variety of sources were used: legal and company statutes, timber trade contracts, archives of the forest companies and organisations. Moreover, the written reminiscences collected by the Finnish Literature Society in the early 1970s were used to analyse the views of individual sellers and buyers. An institutional economics approach was applied as the theoretical framework of this study. In the timber trade the seller (forest owner) and the buyer (the employee of the forest company) agreed to the rules of the timber trade. They agreed about the amount and the price of the timber on sale, but also rules concerning, e.g., timber marking and harvesting. The forest companies had a strong control over the written contracts. Neither the private forest owners nor the forest organisations had much influence over these contracts. However, they managed to influence the rules which could not be found in the contracts. These written and unwritten rules regulated, for instance, the timber marking and measurement. The forest organisations such as Central Forestry Board Tapio (Keskusmetsäseura Tapio) and associations of forest owners (metsänhoitoyhdistykset) helped private forest owners in gaining more control over the timber marking. In timber marking, the forest owner selected trees to be included in the timber trade and gained more information, which he could use in the negotiations. The other rule, which was changed despite forest companies’ resistance, was the timber measurement. The Central Union of Agricultural Producers (MTK) negotiated with the Central Association of Finnish Woodworking Industries (SPKL) about changing the rules of the measurement practices. Even though SPKL did not support any changes, the new timber measurement law was accepted in the year 1938. The new law also created a supervisory authority to solve possible disagreements. Despite this the forest companies were still in charge of the measurement process in most cases. The private forest owners attained changes in the rules of the timber trade mainly during the 1930s. Earlier the relative weakness of the private forest organisations had diminished their negotiation positions. This changed in the 1930s as the private forest owners and their organisations became more active. At the same time the forest industry experienced a shortage of timber, especially pulp wood, and this provided the private forest owners with more leverage. Full-text (in Finnish) available at http://helda.helsinki.fi/handle/10224/4081

As garantias financeiras e o seu controlo na atividade seguradora

Dissertação de Mestrado apresentado ao Instituto de Contabilidade e Administração do Porto para a obtenção do grau de Mestre em Contabilidade e Finanças, sob orientação do Professor Doutor Armindo Licínio da Silva Macedo

Choosing the Lesser of Two Evils: Explaining Multinational Banking Groups’ Push for Supranational Oversight in the EU

European Union Series

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 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.

Low latitude scintillations: A comparison of modeling and observations within the CIGALA project

Ionospheric scintillations can seriously jeopardize the reliability of the GNSS signals and consequently can cause significant error or outage on precise positioning applications. The threat is most acute at low latitudes where ionospheric irregularities are more likely to occur resulting in L-band signal scintillations. This paper describes the effort made to model the ionospheric scintillations over the Latin American region in the frame of the CIGALA project funded by the European GNSS Supervisory Authority within the 7th Framework Programme of the European Commission. Comparisons between the low-latitude model of scintillations and observations are here presented and discussed within the project perspectives. © 2011 IEEE.

ENCORE: Enhanced Galileo code receiver for surveying applications

In this paper we describe the development of a low-cost high-accuracy Galileo Code receiver, user application software and positioning algorithms for land management applications, which have been implemented using a dedicated FPGA board and dual frequency Galileo E5/L1 Radio Frequency Front-End. The current situation of rural property surveying in Brazil is described and the use of code measurements from the new Galileo signals E5 AltBOC combined with E1 MBOC for use in land management applications is explored. We explain how such approach is expected to allow delivering an absolute positioning solution which could bridge the gap between receivers of high cost/complexity/accuracy based on carrier phase and receivers of lower cost/accuracy based on pseudorange observables. The system is presented together with a detailed description of main components: the Code Receiver and the Application Software. The work presented is part of an ongoing European-Brazilian consortium effort to explore the use of new Galileo for land management applications in Brazil and sponsored by the GNSS Supervisory Authority (GSA).

Tackling ionospheric scintillation threat to GNSS in Latin America

Scintillations are rapid fluctuations in the phase and amplitude of transionospheric radio signals which are caused by small-scale plasma density irregularities in the ionosphere. In the case of the Global Navigation Satellite System (GNSS) receivers, scintillation can cause cycle slips, degrade the positioning accuracy and, when severe enough, can even lead to a complete loss of signal lock. Thus, the required levels of availability, accuracy, integrity and reliability for the GNSS applications may not be met during scintillation occurrence; this poses a major threat to a large number of modern-day GNSS-based applications. The whole of Latin America, Brazil in particular, is located in one of the regions most affected by scintillations. These effects will be exacerbated during solar maxima, the next predicted for 2013. This paper presents initial results from a research work aimed to tackle ionospheric scintillation effects for GNSS users in Latin America. This research is a part of the CIGALA (Concept for Ionospheric Scintillation Mitigation for Professional GNSS in Latin America) project, co-funded by the EC Seventh Framework Program and supervised by the GNSS Supervisory Authority (GSA), which aims to develop and test ionospheric scintillation countermeasures to be implemented in multi-frequency, multi-constellation GNSS receivers.

A realistic bridge towards European banking union. Bruegel Policy Contribution 2013/09, June 2013

New obstacles to the European banking union have emerged over the last year, but a successful transition remains both necessary and possible. The key next step will be in the second half of 2014, when the European Central Bank (ECB) will gain supervisory authority over most of Europe’s banking system. This needs to be preceded by a rigorous balance sheet assessment that is likely to trigger significant bank restructuring, for which preparation has barely started. It will be much more significant than current discussions about a bank resolution directive and bank recapitalisation by the European Stability Mechanism (ESM). The 2014 handover, and a subsequent change in the European treaties that will establish the robust legal basis needed for a sustainable banking union, together define the policy sequence as a bridge that can allow Europe to cross the choppy waters that separate it from a steady-state banking policy framework.

The EU-Ukraine Action Plan on Visa Liberalisation: an assessment of Ukraine's readiness. OSW Commentary No. 45, 2011-01-17

The Action Plan on visas adopted during the recent EU-Ukraine summit is a success for Ukraine. It is the first time that Kyiv has succeeded in obtaining a definition of the conditions and criteria whose fulfilment will enable Ukraine to apply for the lifting of EU visas for its citizens. Ukraine's strong point has been its political will; the lifting of this visa regime has been a priority for all Ukrainian governments since 2005. Since Viktor Yanukovych became president, Ukraine has adopted or prepared key legal acts that brought it nearer to European standards in the area of border and migration management. One of Kyiv's strengths is also its relatively well reformed and efficiently managed border service. Moreover, illegal transit migration via Ukraine is decreasing, and fewer Ukrainians are trying to enter or stay in the EU illegally. Also, Kyiv has efficiently implemented the EU-Ukraine readmission agreement. The hardest task for Ukraine will be to meet the EU’s expectations concerning values, the condition of Ukrainian democracy, and the rule of law. Corruption remains the main barrier to Ukraine's development and modernisation; the courts are weak and the judicial system inefficient. The main undertaking of the new migration service that is being formed at the moment will be to create a civil system of registration, monitoring and regulating the stays of foreign nationals. This may prove difficult, as the supervisory authority (the Ministry of the Interior) remains an unreformed, police-type bureaucratic institution. Ukraine is lagging behind countries such as Russia, Belarus and Moldova when it comes to the introduction of biometric documents. Another problem is the lack of an electronic information system on foreign nationals, visas and border crossings which would be accessible to all the relevant services and institutions. For these reasons, the complete abolition of visas seems to be a longterm perspective, especially considering that many EU countries, which themselves are faced with the problem of migrants’ integration, are rather sceptical about the further liberalisation of movement of people with their eastern neighbours. In the immediate future, if Ukraine meets some of the requirements set by the EU, it will be able to seek the extension of the visa facilitations that have been in operation since 2008.

Internal Control application : Empirical evidence from Sweden

Aim The aim of this study is to explore based on internationally recognised frameworks: 1. how internal control structures are applied in Sweden among different sectors; 2. how organizational size and environment affect internal control structures; and 3. the impact of internal control structures on organizational performance. Methods A quantitative method was used in the data collection and analysis. The sample consisted of 1117 organizations operating in Sweden. A mean analysis was conducted to measure the level of internal control structures among different industries, organizational sizes, and different choices of listing in the stock exchange market. Person’s correlation analysis was then used to explore possible correlations between external environmental factors and internal control structures, and internal control structures and organizational performance. Lastly, a structural model was built to measure the impact of internal control structures on organizational performance. The measurements of internal control structures and organizational performance are based on COSO framework’s principles and objectives. Results This study gives an insight on how internal control structures are applied across industrial sectors in Sweden, with financial institutions and manufacturing organizations having notably higher levels of internal control structures. Additionally, it provides evidence of the impact external environmental factors have on internal control structures. Furthermore, it shows that organizations that are listed in the Swedish stock exchange market have an equivalent level of internal control structures to those registered in the American stock exchange market. In contrast, organisations that are not listed in the stock exchange market have a notably lower level of internal control structures. Lastly, it illustrates the positive impact the presence of internal control structures has on organizational performance. 3 | P a g e Conclusion The results highlight a crucial role the supervisory authority Finansinspektionen (FI) has in regulating the Swedish financial market. They also show that the stability of the Swedish business environment has had a positive impact on the level of internal control structures.

A comunicação da ASF com os colaboradores e com a comunidade em geral

O presente trabalho tem como objetivo principal analisar a comunicação da ASF com os colaboradores e com a comunidade em geral. Para tal, identificaram-se ferramentas e ações na comunicação dirigida ao público interno e ao público em geral e, por fim, apresentaram-se campanhas e ações de comunicação. A ASF tem por missão assegurar o bom funcionamento do mercado segurador e dos fundos de pensões em Portugal, por forma a contribuir para a garantia da proteção dos tomadores de seguros, pessoas seguras, participantes e beneficiários. A falta de notoriedade, credibilidade e compreensão das funções desta entidade junto da comunidade em geral, nomeadamente dos consumidores, são os principais pontos fracos da sua estratégia de comunicação. Posto isto, criaram-se ações específicas para o público interno que, naturalmente, tiveram implicações diretas no público externo, e permitiram alcançar objetivos da ASF. Foram desenvolvidas atividades na revista de imprensa, nas plataformas de apoio à gestão, monotorização e análise dos dados media e da intranet, edição de materiais e organização de eventos, nomeadamente o aniversário da ASF. Também se participou no PNFF (Plano Nacional de Formação Financeira) e no processo da mudança da designação ISP (Instituto de Seguros de Portugal) para ASF (Autoridade de Supervisão de Seguros e Fundos de Pensões) o que possibilitou à equipa de comunicação desenvolver novas e melhores estratégias. Por fim, considerou-se ainda que a ASF deveria implementar uma estratégia em que a imagem de qualidade do seu trabalho fosse do conhecimento público, ou seja, deverá primeiro ganhar notoriedade e depois desenvolver as associações pretendidas para a imagem que quer criar junto do público. A aproximação a escolas e aos jovens poderá ser uma forma interessante para atingir os objetivos da ASF, essencialmente junto do público externo; Abstract: The chief goal of the present thesis is to analyses the communication of the Insurance Supervisory Authority and Pension Fund (ASF) towards its collaborators and the community, in general. In order to achieve this purpose, the thesis identified the tools and actions of the communication developed for the internal public and the community, then, it identifies specific actionist presents specific actions of communication. ASF aims to ensure the proper functioning of insurance market and pension funds in Portugal, in order to contribute towards ensuring policyholders protection, insured persons, participants and beneficiaries. Under the new strategy implementation on behalf of insurance and pension funds consumers a form of communication was developed focused on promoting consumers understanding about the running of this sector. Specific actions for internal public were intensified, which, of course, have had direct implications on external public, largely achieving the ASF objectives. The main weaknesses of this entity’s communication strategy are the lack of notoriety, credibility and understanding of the functions. Activities have been developed within the management of the press review events, such as ASF’birthday. The participation in PNFF and the process of change to the new designation enabled the communication team to develop communication strategies. Concerning the analysis of ASF’s communication strategy, it is suggested that the company should implement a strategy in which the quality of its work is of public knowledge. This means that, first, it should gain notoriety and, then, it should develop associations between the brand and the public.

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.