Saving for Retirement and Investing for Growth. Report of the CEPS-RCMI Task Force on Long-term Investing and Retirement Savings. CEPS Task Force Report, September 2013

Europe is facing a double challenge: a significant need for long-term investments – crucial levers for economic growth – and a growing pension gap, both of which call for resolute action. Crucially, at a time when low interest rates and revised prudential standards strain the ability of life insurers and pension funds to offer guaranteed returns, Europe lacks a framework ensuring the quality and accessibility of long-term investment solutions for small retail investors and defined contribution pension plans. This report considers the potential to steer household financial wealth – accounting for over 60% of total financial wealth in Europe – towards long-term investing, which would achieve two goals at once: higher growth and higher pensions. It follows a holistic approach that considers both solution design – how to gear product structuring towards long-term investing – and market structure – how to engineer a competitive market setting that is able to deliver high-quality and cost-efficient solutions. The report also considers prudential rules for insurers and pension funds and the potential to build a single market for less-liquid funds, occupational and personal pensions, with improved investor protection. It urges policy-makers to act aggressively to deliver more inclusive, efficient and resilient retail investment markets that are better equipped and more committed to deliver value over the long-term for beneficiaries.

Financial services and the Transatlantic Trade and Investment Partnership. CEPS Policy Brief No. 302, 20 November 2013

Given the size of the financial markets on both sides of the Atlantic and the symmetry in the follow-up of the G-20 standards, Karel Lannoo argues in this Policy Brief that the Transatlantic Trade and Investment Partnership (TTIP) provides a good opportunity to put in place a more institutionalised framework. He finds that both blocs have reacted in similar ways to the financial crisis in strengthening their regulatory and supervisory frameworks and incorporating the G-20 recommendations into federal law. He also notes that consumer protection has been reinforced, certainly in the US, with the creation of the Consumer Financial Protection Bureau. And on the EU side, the Single Supervisory Mechanism (SSM) will radically change banking supervision. In his view, inclusion of financial services could also be an opportunity to strengthen prudential rules and consumer protection provisions on both sides. Rather than leading to a reduction of consumer protection, as had been feared in the post-crisis environment, it could lead to an examination, exchange and recognition of best practices in regulation and enforcement. Finally, he concludes that inclusion of financial services would make it part of the permanent regulatory dialogue that will be established as a result of a successful TTIP.

Time to Set Banking Regulation Right. CEPS Paperbacks. March 2012

Excessive leverage and risk-taking by large international banks were the main causes of the 2008-09 financial crisis and the ensuing sharp drop in economic activity and employment. World leaders and central bankers promised that it would not happen again and, to this end, undertook to overhaul banking regulation, first and foremost by rectifying Basel prudential rules. This study argues that the new Basel III Accord and the ensuing EU Capital Requirements Directive IV fail to correct the two main shortcomings of international prudential rules: 1) reliance on banks’ risk management models for the calculation of capital requirements and 2) the lack of accountability by supervisors. Accordingly, the authors propose the calculation of capital requirements without risk adjustment and creation of a system of mandated action by supervisors modelled on the US framework of Prompt Corrective Action (PCA). They also recommend that banks should be required to issue large amounts of debentures that are convertible into equity in order to strengthen market discipline on management and shareholders.

Ograniczona względami ekonomicznymi dostępność świadczeń zdrowotnych a naruszenie przez lekarza reguł ostrożności

Odpowiedzialność karną lekarza łączy się powszechnie z problematyką błędu medycznego, choć właściwie odpowiada on nie za sam błąd medyczny, jako że prawo karne nie zna przestępstwa polegającego na popełnieniu błędu medycznego, ale za ewentualne jego skutki, które mogą być kwalifikowane jako nieumyślne spowodowanie śmierci, nieumyślne spowodowanie ciężkiego, średniego albo lekkiego uszczerbku na zdrowiu bądź nieumyślne narażenie na niebezpieczeństwo utraty życia albo ciężkiego uszczerbku na zdrowiu. Nie można oczywiście wykluczyć wystąpienia sytuacji, w której lekarz swoim zachowaniem zrealizowałby znamiona typu umyślnego, jednakże na potrzeby niniejszej publikacji przyjęto, że co do zasady lekarz działa w celu ratowania dóbr prawnych, jakimi są życie i zdrowie pacjenta, nie zaś z zamiarem narażenia ich na niebezpieczeństwo bądź naruszenia, a ewentualne negatywne skutki dla życia i pacjenta, powstałe w miejsce lub obok zamierzonego stanu rzeczy, nie są przez niego objęte umyślnością. Kluczowym warunkiem uznania, że czyn popełniony został nieumyślnie jest ustalenie, że sprawca naruszył reguły ostrożnego postępowania, wymagane w danych okolicznościach. W odniesieniu do zawodu lekarza na pierwszy plan wysuwa się wśród nich wymóg stosowania się do wskazań aktualnej wiedzy medycznej. Autorka przekłada ten obowiązek na grunt realiów systemu ochrony zdrowia i rozważa, jaki wpływ na jego niedopełnienie mają okoliczności ograniczonej względami ekonomicznymi dostępności świadczeń zdrowotnych oraz w jaki sposób niedostatek środków finansowych może rzutować na naruszenie przez lekarza reguł ostrożnego postępowania, o których mowa w art. 9 § 2 Kodeksu karnego.

A Viable Alternative to Basel III Prudential Capital Rules. CEPS Policy Brief No. 291, May 2013

Stefano Micossi argues in this paper that the Basel framework for bank prudential requirements is deeply flawed and that the Basel III revision has failed to correct these flaws, making the system even more complicated, opaque and open to manipulation. In practice, he finds that the present system does not offer regulators and financial markets a reliable capital standard for banks and its divergent implementation in the main jurisdictions of the European Union and the United States has broken the market into special fiefdoms governed by national regulators in response to untoward special interests. The time is ripe to stop tinkering with minor adjustment and revisions in order to rescue the system, because the system cannot be rescued. In response to the current situation, Micossi calls for abandoning reference to risk-weighted assets calculated by banks with their internal risk management models for the determination of banks’ prudential capital, together with the preoccupation with the asset side of banks in correcting for risk exposure. He suggests that the alternative may be provided by a combination of a straight capital ratio and a properly designed deposit insurance system. It is a logical, complete and much less distortive alternative; it would serve better the cause of financial stability as well as the interest of the banks in clear, transparent and level playing field.

Capital-account and counter-cyclical prudential regulations in developing countries

Includes bibliography

The Financial Services Regime in International Economic Law: on the Difficult Relationship between Trade Liberalization and Prudential Measures

The PhD thesis analyses the financial services regime in international economic law from the perspective of the difficult relationship between trade liberalisation and prudential measures. Financial stability plays a fundamental role for the well-being and well-functioning of the global economy, but, it is at the same time a complex sector to regulate and supervise and, especially after the 2007-08 economic crisis, States have tightened up their regulation of financial services, introducing more severe and protectionist prudential measures. However, in an increasingly interconnected global economy, the harmonization of prudential regulation at the international level is an essential step to guarantee integrity, fairness and stability of financial markets and trade. The research analyses the tools at disposition to achieve this aim, the related problematic issues and the perspectives and possible solutions for the future, starting from the World Trade Organization (WTO) legal framework and its General Agreement on Trade in Services (GATS), devoted to discipline trade in services among the WTO Members. Then, the research moves to a second legal instrument, the Free Trade Agreements (FTAs), which has witnessed a remarkable spread in the last decades. Finally, the research addresses the international standards, developed by supranational entities and implemented by an increasing number of States, as they offer rules and guidelines adequate to update the international financial scenario. Nevertheless, the international standards alone cannot be the solution because, first, they are not mandatory, as governments decide voluntarily to apply them and, second, their decision-making process do not respect the requirements of transparency and representative membership. In light of this analysis, the thesis aims at providing an answer to its research question: how to give more certainty to States and economic operators in the planning of the domestic disciplines and business activities in order to provide a sound and stable international financial system.

Radiative decay of the X(3872) as a mixed molecule-charmonium state in QCD sum rules

We use QCD sum rules (QCDSR) to calculate the width of the radiative decay of the meson X(3872), assumed to be a mixture between charmonium and exotic molecular [c (q) over bar][q (c) over bar] states with J(PC) = 1(++). We find that in a small range for the values of the mixing angle, 5 degrees <= theta <= 13 degrees, we get the branching ratio Gamma(X -> J/psi gamma)/Gamma(X -> J/psi pi(+)pi(-)) = 0.19 +/- 0.13, which is in agreement, with the experimental value. This result is compatible with the analysis of the mass and decay width of the mode J/psi(n pi) performed in the same approach.

Bs0 meson and the Bs0BK coupling from QCD sum rules

We evaluate the mass of the B(s0) scalar meson and the coupling constant in the B(s0)BK vertex in the framework of QCD sum rules. We consider the B(s0) as a tetraquark state to evaluate its mass. We get m(Bs0) = (5.85 +/- 0.13) GeV, which is in agreement, considering the uncertainties, with predictions supposing it as a b (s) over bar state or a B (K) over bar bound state with J(P) = 0(+). To evaluate the g(Bs0BK) coupling, we use the three-point correlation functions of the vertex, considering B(s0) as a normal b (s) over bar state. The obtained coupling constant is: g(Bs0BK) = (16.3 +/- 3.2) GeV. This number is in agreement with light-cone QCD sum rules calculation. We have also compared the decay width of the B(s0) -> BK process considering the B(s0) to be a b (s) over bar state and a BK molecular state. The width obtained for the BK molecular state is twice as big as the width obtained for the b (s) over bar state. Therefore, we conclude that with the knowledge of the mass and the decay width of the B(s0) meson, one can discriminate between the different theoretical proposals for its structure.

QCD sum rules for the X(3872) as a mixed molecule-charmonium state

We use QCD sum rules to test the nature of the meson X(3872), assumed to be a mixture between charmonium and exotic molecular [c (q) over bar][q (c) over bar] states with J(PC) = 1(++). We find that there is only a small range for the values of the mixing angle theta that can provide simultaneously good agreement with the experimental value of the mass and the decay width, and this range is 5(0) <= theta <= 3(0). In this range we get m(X) = (3.77 +/- 0.18) GeV and Gamma(X -> J/psi pi(+)pi(-)) = (9.3 +/- 6.9) MeV, which are compatible, within the errors, with the experimental values. We, therefore, conclude that the X(3872) is approximately 97% a charmonium state with 3% admixture of similar to 88% D(0)D*(0) molecule and similar to 12% D(+)D*(-) molecule.

Width of exotics from QCD sum rules : Tetraquarks or molecules?

We investigate the widths of the recently observed charmonium like resonances X(3872), Z(4430), and Z(2)(4250) using QCD sum rules. Extending previous analyses regarding these states as diquark-antiquark states or molecules of D mesons, we introduce the Breit-Wigner function in the pole term. We find that introducing the width increases the mass at the small Borel window region. Using the operator-product expansion up to dimension 8, we find that the sum rules based on interpolating current with molecular components give a stable Borel curve from which both the masses and widths of these resonances can be well obtained. Thus the QCD sum rule approach strongly favors the molecular description of these states.

Bayesian updating rules in continuous opinion dynamics models

Here, I investigate the use of Bayesian updating rules applied to modeling how social agents change their minds in the case of continuous opinion models. Given another agent statement about the continuous value of a variable, we will see that interesting dynamics emerge when an agent assigns a likelihood to that value that is a mixture of a Gaussian and a uniform distribution. This represents the idea that the other agent might have no idea about what is being talked about. The effect of updating only the first moments of the distribution will be studied, and we will see that this generates results similar to those of the bounded confidence models. On also updating the second moment, several different opinions always survive in the long run, as agents become more stubborn with time. However, depending on the probability of error and initial uncertainty, those opinions might be clustered around a central value.

Quasispin graded-fermion formalism and gl(m vertical bar n)down arrow osp(m vertical bar n) branching rules

The graded-fermion algebra and quasispin formalism are introduced and applied to obtain the gl(m\n)down arrow osp(m\n) branching rules for the two- column tensor irreducible representations of gl(m\n), for the case m less than or equal to n(n > 2). In the case m < n, all such irreducible representations of gl(m\n) are shown to be completely reducible as representations of osp(m\n). This is also shown to be true for the case m=n, except for the spin-singlet representations, which contain an indecomposable representation of osp(m\n) with composition length 3. These branching rules are given in fully explicit form. (C) 1999 American Institute of Physics. [S0022-2488(99)04410-2].