...Basel I The Basel Accords are some of the most influential—and misunderstood—agreements in modern international finance. Drafted in 1988 and 2004, Basel I and II have ushered in a new era of international banking cooperation. Through quantitative and technical benchmarks, both accords have helped harmonize banking supervision, regulation, and capital adequacy standards across the eleven countries of the Basel Group and many other emerging market economies. On the other hand, the very strength of both accords—their quantitative and technical focus—limits the understanding of these agreements within policy circles, causing them to be misinterpreted and misused in many of the world’s political economies. Moreover, even when the Basel accords have been applied accurately and fully, neither agreement has secured long-term stability within a country’s banking sector. Therefore, a full understanding of the rules, intentions, and shortcomings of Basel I and II is essential to assessing their impact on the international financial system. This paper aims to do just that—give a detailed, non-technical assessment of both Basel I and Basel II, and for both developed and emerging markets, show the status, intentions, criticisms, and implications of each accord. Basel I Soon after the creation of the Basel Committee, its eleven member states (known as the G-10) began to discuss a formal standard to ensure the proper capitalization...
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...Evolution of Basel Norms and their contribution to the Subprime Crisis The article highlights the emergence of the Basel Accord in 1998 and how it has evolved over the course of the last 23 years. Contrary to the popular belief capital regulations have been considered the biggest underlying factor of the subprime crisis owing to securitization, the shadow banking system and the flexibility given to banks in risk assessment. The recent Basel III norms though aim to mitigate the already caused damage, the results are still left to be witnessed. Evolution of Basel Norms and their contribution to the Subprime Crisis The article highlights the emergence of the Basel Accord in 1998 and how it has evolved over the course of the last 23 years. Contrary to the popular belief capital regulations have been considered the biggest underlying factor of the subprime crisis owing to securitization, the shadow banking system and the flexibility given to banks in risk assessment. The recent Basel III norms though aim to mitigate the already caused damage, the results are still left to be witnessed. The Financial Crisis of 2008 shook the financial world and is still in tatters even after 3 years of its outbreak. From the New York investment bank Bear Stearns collapse in June 2007, Northern Rock liquidity support (Sep’ 07), Bank of America purchases of Countrywide Financial (Jan’ 08), Nationalization of Fannie Mae and Freddie Mac by the federal government (July 08), Lehman Brothers...
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...FORE School of Management A DISSERTATION REPORT ON Impact of Basel III norms on select Indian & European banks Submitted By: DEEPANSHU CHANDRA, 053009 FORE SCHOOL OF MANAGEMENT, DELHI A Report submitted in partial fulfilment of the requirement of Post Graduate Diploma Program in Management SUBMITTED TO: Faculty Guide: Prof. Sanghamitra Buddhapriya FORE School of Management 1 FORE School of Management CERTIFICATE This is to certify that Mr. Deepanshu Chandra has completed his Dissertation under my guidance and has submitted this project report entitled Impact of Basel III norms on select Indian and European banks towards partial fulfilment of the requirements for the award of the Post Graduate Diploma Program in Management (FORE, Delhi) 2011-2013. This Report is the result of his own work and to the best of our knowledge. This project was carried out under my overall supervision. Date: Place: ---------------------------------- Prof. Sanghamitra Buddhapriya (Faculty Guide) FORE School of Management 2 FORE School of Management ACKNOWLEDGEMENT I would like to take this opportunity to thank all those who helped me in the successful completion of my Dissertation. To start with, I would like to thank the organization FORE School of Management for providing me the chance to undertake this Dissertation. I wish to place on records, my deep sense of gratitude and sincere appreciation to my Mentor, Prof. Sanghamitra Buddhapriya, Faculty...
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...Regional Rural Banks) Madam / Dear Sir, Guidelines on Implementation of Basel III Capital Regulations in India Please refer to the paragraph 90 (extract enclosed) of the Monetary Policy Statement 2012-13 announced on April 17, 2012. It was indicated that the final guidelines on the implementation of Basel III capital regulations would be issued by end - April 2012. It may be recalled that draft proposals on Basel III capital regulations were issued vide circular DBOD.No.BP.BC.71/ 21.06.201/ 2011-12 dated December 30, 2011. 2. The final guidelines on Basel III capital regulations are enclosed. These guidelines would become effective from January 1, 2013 in a phased manner. The Basel III capital ratios will be fully implemented as on March 31, 2018. 3. The capital requirements for the implementation of Basel III guidelines may be lower during the initial periods and higher during the later years. While undertaking the capital planning exercise, banks should keep this in view. 4. RBI is currently working on operational aspects of implementation of the Countercyclical Capital Buffer. Guidance to banks on this will be issued in due course. Besides, certain other proposals viz. ‘Definition of Capital Disclosure Requirements’, ‘Capitalisation of Bank Exposures to Central Counterparties’ etc., are also engaging the attention of the Basel Committee 1 at present. Therefore, the final proposals of the Basel Committee on these aspects will be considered for implementation, to...
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...Roche, Novartis and UBS Syngenta which the Financial Times includes in its FT Global 500 Index as one of the most important companies worldwide Pharmaceuticals, Biotechnology & Life Sciences 4-Antibody Acino Actelion Aerosol-Service AG Bachem Basilea Beiersdorf Bühlmann Laboratories Carbogen AMCIS Cimex CIS Pharma DSM Nutritional Products AG Evolva Gaba Genedata Inotech Karger Lonza Mepha MondoBIOTECH Novartis Pentapharm Permamed Polyphor Proreo Pharma RCC Ltd. Roche Santhera S.L.A. Pharma SwissCo Services Swiss Pharma Contract Syngenta Synosia Tillots Pharma AG Triplan Vivendy Therapeutics Weleda Xenometrix ------------------------------------------------- Chemicals & Nanotechnology Acino Bachem Clariant Concentris Lonza Nanosurf Rohner Chem Rolic Solvias Swiss Nanoscience Institute Zeptosens ------------------------------------------------- ------------------------------------------------- Agribusiness & Food Bell AG Bio.inspecta AG DSM Nutritional Products Feldschlösschen Jungbunzlauer Louis Ditzler AG Ricola Syngenta Medical Technology * Camlog * Medartis * NaviSwiss * SIC invent AG Switzerland * Straumann * Synthes * Thommen Medical ------------------------------------------------- Commerce & Logistics ...
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...Corning Inc. To: From: Subject: Recommendations for the three proposals Corning Inc.’s strategy – to compete in four worldwide business sectors (communications, laboratory sciences, consumer housewares, and specialty materials) and to deliver long-range superior economic benefits to its employees, consumers, communities, and shareholders – has served the organization well for over three decades as evidenced by a transformed business portfolio, record earnings, and the emergence of a new spirit within the organization. However, due to diverse changes in trends that characterize the industry’s landscape, there is the need to come up with innovative proposals that originate from diverse business sectors. The CEO of Corning Inc. hopes that these proposals would aid in the company’s continual growth. These proposals deal with (a) the laboratory sciences, (b) communication (fiber optics), and (c), the television glass division. The opinions given are a result of a comprehensive deduction of the Porter’s Five Forces model so as to identify the best paths of actions to achieve a proper competitive advantage in the industry. For the first proposal, I think it is vital that Corning maintains its relationship with Ciba Geigy. Ciba Geigy has portrayed a strong commitment to the partnership’s success as evidenced by its willingness to preserve with significantly low returns over the next few years as the venture continues to grow. Furthermore, it has a good strategic fit with Corning Inc...
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...reaction and centuries of habit has deeply ingrained this behavior into society. It has developed a sort of "functional autonomy" meaning that the modern implication of "bless you" is detached from its roots (Psychology Today). Acknowledging a stranger, be it holding the door or elevator, is not only tied to the impression an individual gives, but it has become a norm and an expectation in everyday behavior. Some may even be offended or hurt when others do not conform, leading to a dispute like the one between Robin and Michael in Seinfeld's "Good Samaritan" episode. Analyzing the social context makes it apparent that society uses norms to guide behavior and pressure people to conform while frowning upon those who stray from expectations. In a Seinfeld scene where Robin, Michael, Elaine, and George have dinner at a moderately classy restaurant, Robin sneezes and George hesitates before saying "bless you." George then proceeds to joke that Michael, who is Robin's husband, ought to have the responsibility of saying "bless you" first (Seinfeldology). George points out Michael's lack of adherence to the social norms demanded in such a formal setting. In this case, there is a variety of factors that shape the level of formality. The group is in a relatively upscale environment where appropriate attire applies, wine is served, and diners ask instead of reaching over for the bread basket. This adds to the social pressure that comes with proper dinner table manners and...
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...those culture. Part II – Current Culture A. Cultural Type As we can see in the accompanying OCI Circumplex, Sandstone is strongest in the Aggressive/Defensive Styles. This Aggressive/Defensive culture is generally one “in which members are expected to approach tasks in forceful ways to protect their status and security, are characterized by Oppositional, Power, Competitive, and Perfectionistic norms.” * Oppositional: pointing out flaws * Power: building up one’s power base * Competitive: turning the job into a contest * Perfectionistic: doing things perfect Primary style is Competitive This was the cultural norm with the greatest percent score: 89%. According to the OCI Interpretation & Development Guide, a Competitive culture is generally one “in which winning is valued and members are rewarded for outperforming one another. Members operate in a "win-lose" framework and believe they must work against (rather than with) their peers to be noticed”. (Turn the job into a contest; never appear to lose) Secondary style is Oppositional This was the cultural norm with the second greatest percent score: 88%. According to the OCI Interpretation & Development Guide,...
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...Challenging the Social Norm. “Story Of An Hour” by Kate Chopin is a telling story about a woman, Mrs. Mallard, who’s given the horrible news that her husband has passed away in a train wreck. Devastated by her husband’s sudden death, she excuses herself and immediately rushes to her bedroom; this is where readers see a different side of Mrs. Mallard. In time she has taken on a different angle of life. Although obviously upset about her husband’s sudden death, Mrs.Mallard has something to be happy about. In 1894 when the “Story Of An Hour” was written, women didn’t have a say over anything and because of her husband's death; Mrs.Mallard learns the cost of both freedom gained, and freedom lost. Kate Chopin lived in a time period when women really did not have any rights. Therefore her stories typically focused entirely around the theme of female characters who dealt with these problems; Chopin was well known for writing about these society blocks. However in her stories the women usually take on a more conventional side than what would be expected. Normally they chose their own path rather than what society would want. One theme in Chopin’s story is freedom (Mayer, 95). In the beginning of “The Story of an Hour” the scene opens up and readers are introduced to Mrs. Mallard, who has been told that her husband has died in a horrible train wreck.She reacts to this news like any other wife would -- yes, she is clearly upset so she excuses herself and rushes off to her bedroom...
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...as in the case of noise pollution. However, human behavior is not always simple when determining the source. Many points of input are present, one of them being environmental cues. “Cues are elements in the environment that convey important information or trigger an affective reaction” (Steg, 2013, p. 120). How a human responds and impacts the environment is determined by the cues and the message they convey. Environmental Cues and Behavior “Sentences, words, and visual images are environmental cues that can affect the behavior of individuals (Charles-Sire, Guéguen, Pascual, & Meineri, 2012, p. 457). The presence of environmental cues is constant and therefore shapes human behavior in positive, as well as negative ways. Social norms and laws or rules are reinforced or weakened as a result of environmental cues. For example, a fabric rail queue line at the bank is meant to control the line and spread the customers for quicker service. Some individuals adhere to this cue regardless of the abundance or lack of customers while others adhere only if no way around it is found. Cues can be as basic as signs warning to not litter or as involved as public service announcements and social media campaigns. Behavior Modification There are often a variety of external cues and internal drives that shape behavior. As such, when an individual has set a goal to meet or an intention for new behavior, when the circumstances change, often the goals and intentions are dropped because...
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...Norms are based on your behavior. Norms can be put into many groups. Informal norms are everyday behavior. They aren’t written down and can be as common as saying “good morning” and washing your hands or saying a prayer before you eat. Formal norms are written down into a law, which, if broken you will face a punishment. Examples of formal norms are do not steal from a store or do not speed. We enforce norms by sanctions. Sanctions can be positive or negative. Positive sanctions could be as simple as smiling at somebody or as formal as receiving a raise. Negative sanctions could be a frown or going to prison. Society adapts the norms to the world around them. For example, people in Texas don’t need to wear the same winter apparel...
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...Each and every day we do most things without having to put much thought into them. We brush our teeth in the morning, we raise our hand when we want to speak in class, we wait in line behind others instead of cutting, along with tons of other norms. Whenever people break away from these norms society sees it as being deviant, and it catches people off guard because we are to be carrying out these norms, not only by ones-self but also by other’s around us and society. The norm I decided to breech was as simple as walking on the sidewalk to class. There always tends to be a certain side of the sidewalk that people walk on depending on the direction they are going. And when this is disrupted it forces people to change their direction. Whenever...
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...Norms are the behaviors that are expected out of us depending on the society that we live in. The norms that we have learned about this year in class can be on different levels of importance and they are also situational. There are many different types of norms and they all mean different things. The two main norms I will be focusing on today with my acts of deviance will be Folkways and More. Folkways are minor rules that change from what group of people you are with and there really isn’t much of a punishment for them. The other norm, More, is a way more important and also cares a severe punishment for breaking them. There will be two act of deviance that I will be discussing today that I performed to see if it changed any of the other people I was around to break these norms. The first act of deviance will be to kneel in an elevator. I choose this because of the video we watched in class when the people stood backwards in the elevator and everyone that got into the elevator turned around as well. I want to see if it still works today and if it works with more people or just with a single person. I expect it to probably not work in today’s society and people to just look at me and my...
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...HISTORY OF EULER METHOD Leonhard Euler Leonhard Euler was one of the giants of 18th Century mathematics. Like the Bernoulli’s, he was born in Basel, Switzerland, and he studied for a while under Johann Bernoulli at Basel University. But, partly due to the overwhelming dominance of the Bernoulli family in Swiss mathematics, and the difficulty of finding a good position and recognition in his hometown, he spent most of his academic life in Russia and Germany, especially in the burgeoning St. Petersburg of Peter the Great and Catherine the Great. (1707 - 1783) Today, Euler is considered one of the greatest mathematicians of all time. His interests covered almost all aspects of mathematics, from geometry to calculus to trigonometry to algebra to number theory, as well as optics, astronomy, cartography, mechanics, weights and measures and even the theory of music. There are many different methods that can be used to approximate solutions to a differential equation and in fact whole classes can be taught just dealing with the various methods. We are going to look at one of the oldest and easiest to use here. This method was originally devised by Euler and is called, oddly enough, Euler’s Method. General first order IVP; Where f(t,y) is a known function and the values in the initial condition are also known numbers. From the second theorem in...
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...contributions to mechanics, optics, music theory, and other areas of physics. Furthermore, Euler was responsible for popularizing many of the mathematical notations that are standard today, namely “f(x)” to denote a function of the variable x, “e” for the base of the natural logarithm, and “π” for the ratio of the circumference of a circle to its diameter. Without Euler’s work, mathematics would not even look the way it does today, let alone work the same way. He played a pivotal role in shaping, in every sense, the modern landscape of physics and mathematics. Euler was born near Basel, Switzerland in the spring of 1707 to a Protestant pastor and his wife, also from a pastoral family. A voracious learner from youth, Euler soaked up knowledge like a sponge, filling his head with information including “orations, poems and lists of prime powers” [2.xx]. At the age of 14 Euler enrolled in the University of Basel and met Johann Bernoulli, starting what would become one of the most fortuitous academic relationships of his life. During weekly meetings held at his home, Bernoulli fostered Euler’s interests in mathematics, quickly realizing the youth’s potential. In addition to mathematics, Euler studied various subjects before obtaining his masters degree in philosophy and embarking on his journey through divinity school. This particular chapter of his academic career was rather short-lived, as he still found himself inexorably drawn to the study of mathematics. He later remarked: “I was...
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