Abstract: The goals of the present research are to estimate Six Sigma implementation in Latvian commercial banks and to identify the perceived benefits of its implementation. To achieve the goals, the authors used sequential explanatory method. To obtain empirical data, the authors have developed the questionnaire and adapted it for the employees of Latvian commercial banks. The questions are related to Six Sigma implementation and its perceived benefits. The questionnaire mainly consists of closed questions, the evaluation of which is based on 5 point Likert scale. The obtained empirical data has shown that of the two hypotheses put forward in the present research – Hypothesis 1 – has to be rejected, while Hypothesis 2 has been partially confirmed. The authors have also faced some research limitations related to the fact that the participants in the questionnaire belong to different rank of the organization hierarchy.
Abstract: There are three main ways of categorizing capital in banking operations: accounting, regulatory and economic capital. However, the 2008-2009 global crisis has shown that none of these categories adequately reflects the real risks of bank operations, especially in light of the failures Bear Stearns, Lehman Brothers or Northern Rock. This paper deals with the economic capital allocation of global banks. In theory, economic capital should reflect the real risks of a bank and should be publicly available. Yet, as discovered during the global financial crisis, even when economic capital information was publicly disclosed, the underlying assumptions rendered the information useless. Specifically, some global banks that reported relatively high levels of economic capital before the crisis went bankrupt or had to be bailed-out by their government. And, only 15 out of 50 global banks reported their economic capital during the 2007-2010 period. In this paper, we analyze the changes in reported bank economic capital disclosure during this period. We conclude that relative shares of credit and business risks increased in 2010 compared to 2007, while both operational and market risks decreased their shares on the total economic capital of top-rated global banks. Generally speaking, higher levels of disclosure and transparency of bank operations are required to obtain more confidence from stakeholders. Moreover, additional risks such as liquidity risks should be included in these disclosures.
Abstract: Fractional Fourier Transform is a generalization of the
classical Fourier Transform. The Fractional Fourier span in general
depends on the amplitude and phase functions of the signal and varies
with the transform order. However, with the development of the
Fractional Fourier filter banks, it is advantageous in some cases to
have different transform orders for different filter banks to achieve
better decorrelation of the windowed and overlapped time signal. We
present an expression that is useful for finding the perturbation in the
Fractional Fourier span due to the erroneous transform order and the
possible variation in the window shape and length. The expression is
based on the dependency of the time-Fractional Fourier span
Uncertainty on the amplitude and phase function of the signal. We
also show with the help of the developed expression that the
perturbation of span has a varying degree of sensitivity for varying
degree of transform order and the window coefficients.
Abstract: Heart sound is an acoustic signal and many techniques
used nowadays for human recognition tasks borrow speech recognition
techniques. One popular choice for feature extraction of accoustic
signals is the Mel Frequency Cepstral Coefficients (MFCC) which
maps the signal onto a non-linear Mel-Scale that mimics the human
hearing. However the Mel-Scale is almost linear in the frequency
region of heart sounds and thus should produce similar results with
the standard cepstral coefficients (CC). In this paper, MFCC is
investigated to see if it produces superior results for PCG based
human identification system compared to CC. Results show that the
MFCC system is still superior to CC despite linear filter-banks in
the lower frequency range, giving up to 95% correct recognition rate
for MFCC and 90% for CC. Further experiments show that the high
recognition rate is due to the implementation of filter-banks and not
from Mel-Scaling.
Abstract: While financial institutions have faced difficulties
over the years for a multitude of reasons, the major cause of serious
banking problems continues to be directly related to lax credit
standards for borrowers and counterparties, poor portfolio risk
management, or a lack of attention to changes in economic or other
circumstances that can lead to a deterioration in the credit standing of
a bank's counterparties. Credit risk is most simply defined as the
potential that a bank borrower or counterparty will fail to meet its
obligations in accordance with agreed terms. The goal of credit risk
management is to maximize a bank's risk-adjusted rate of return by
maintaining credit risk exposure within acceptable parameters. Banks
need to manage the credit risk inherent in the entire portfolio as well
as the risk in individual credits or transactions. Banks should also
consider the relationships between credit risk and other risks. The
effective management of credit risk is a critical component of a
comprehensive approach to risk management and essential to the
long-term success of any banking organization. In this research we
also study the relationship between credit risk indices and borrower-s
timely payback in Karafarin bank.
Abstract: In this paper we propose a robust environmental sound classification approach, based on spectrograms features driven from log-Gabor filters. This approach includes two methods. In the first methods, the spectrograms are passed through an appropriate log-Gabor filter banks and the outputs are averaged and underwent an optimal feature selection procedure based on a mutual information criteria. The second method uses the same steps but applied only to three patches extracted from each spectrogram.
To investigate the accuracy of the proposed methods, we conduct experiments using a large database containing 10 environmental sound classes. The classification results based on Multiclass Support Vector Machines show that the second method is the most efficient with an average classification accuracy of 89.62 %.
Abstract: This paper presents a new fingerprint coding technique
based on contourlet transform and multistage vector quantization.
Wavelets have shown their ability in representing natural images that
contain smooth areas separated with edges. However, wavelets
cannot efficiently take advantage of the fact that the edges usually
found in fingerprints are smooth curves. This issue is addressed by
directional transforms, known as contourlets, which have the
property of preserving edges. The contourlet transform is a new
extension to the wavelet transform in two dimensions using
nonseparable and directional filter banks. The computation and
storage requirements are the major difficulty in implementing a
vector quantizer. In the full-search algorithm, the computation and
storage complexity is an exponential function of the number of bits
used in quantizing each frame of spectral information. The storage
requirement in multistage vector quantization is less when compared
to full search vector quantization. The coefficients of contourlet
transform are quantized by multistage vector quantization. The
quantized coefficients are encoded by Huffman coding. The results
obtained are tabulated and compared with the existing wavelet based
ones.
Abstract: In this paper a bank of velocity filters is devised to be
used for isolating a moving object with specific velocity in a sequence of frames. The approach used is a 3-D FFT based experimental procedure without applying any theoretical concept
from velocity filters. Accordingly, velocity filters are built using the
spectral signature of each separate moving object. Experimentation
reveals the capabilities of the constructed filter bank to separate moving objects as far as the amplitude as well as the direction of the
velocity are concerned.
Abstract: Every commercial bank optimises its asset portfolio
depending on the profitability of assets and chosen or imposed
constraints. This paper proposes and applies a stylized model for
optimising banks' asset and liability structure, reflecting profitability
of different asset categories and their risks as well as costs associated
with different liability categories and reserve requirements. The level
of detail for asset and liability categories is chosen to create a
suitably parsimonious model and to include the most important
categories in the model. It is shown that the most appropriate
optimisation criterion for the model is the maximisation of the ratio
of net interest income to assets. The maximisation of this ratio is
subject to several constraints. Some are accounting identities or
dictated by legislative requirements; others vary depending on the
market objectives for a particular bank. The model predicts variable
amount of assets allocated to loan provision.
Abstract: Since the 1980s, banks and financial service institutions have been running in an endless race of innovation to cope with the advancing technology, the fierce competition, and the more sophisticated and demanding customers. In order to guide their innovation efforts, several researches were conducted to identify the success and failure factors of new financial services. These mainly included organizational factors, marketplace factors and new service development process factors. They almost all emphasized the importance of customer and market orientation as a response to the highly perceptual and intangible characteristics of financial services. However, they deemphasized the critical characteristics of high involvement of risk and close correlation with the economic conditions, a factor that heavily contributed to the Global financial Crisis of 2008. This paper reviews the success and failure factors of new financial services. It then adds new perspectives emerging from the analysis of the role of innovation in the global financial crisis.
Abstract: The purpose of this paper is to present two different
approaches of financial distress pre-warning models appropriate for
risk supervisors, investors and policy makers. We examine a sample
of the financial institutions and electronic companies of Taiwan
Security Exchange (TSE) market from 2002 through 2008. We
present a binary logistic regression with paned data analysis. With
the pooled binary logistic regression we build a model including
more variables in the regression than with random effects, while the
in-sample and out-sample forecasting performance is higher in
random effects estimation than in pooled regression. On the other
hand we estimate an Adaptive Neuro-Fuzzy Inference System
(ANFIS) with Gaussian and Generalized Bell (Gbell) functions and
we find that ANFIS outperforms significant Logit regressions in both
in-sample and out-of-sample periods, indicating that ANFIS is a
more appropriate tool for financial risk managers and for the
economic policy makers in central banks and national statistical
services.
Abstract: Islamic banking is one the most blossoming doctrine in
economic system of the world. The Fast growing awareness about
Islamic financial system has brought strong feeling to Muslims to
confront the western interest-based economic cycle. The Islamic
economic system is emerging as a reliable alternative to the interest
based system. This study is proposed to ascertain the motivational
factors encouraging people to go for Islamic banking in Pakistan.
These pulsing factors are determined by generation of hypothesis that
there are certain factors which are urging people to opt Islamic
banking system and to see the differences in their ranking by applying
Friedman test. These factors include: Economically derived factors
such as stability of Islamic banks in crisis, profit and loss sharing
doctrine and equity sharing etc. This study also highlights the
religiously derived factors such as interest free banking, Shariah
tenets and supervisory of Islamic Shariah board and sociopsychological
factors.
Abstract: Properly sized capacitor banks are connected across induction motors for several reasons including power factor correction, reducing distortions, increasing capacity, etc. Total harmonic distortion (THD) and power factor (PF) are used in such cases to quantify the improvements obtained through connection of the external capacitor banks. On the other hand, one of the methods for assessing the motor internal condition is by the use of Park-s pattern analysis. In spite of taking adequate precautionary measures, the capacitor banks may sometimes malfunction. Such a minor fault in the capacitor bank is often not apparently discernible. This may however, give rise to substantial degradation of power factor correction performance and may also damage the supply profile. The case is more severe with the fact that the Park-s pattern gets distorted due to such external capacitor faults, and can give anomalous results about motor internal fault analyses. The aim of this paper is to present simulation and hardware laboratory test results to have an understanding of the anomalies in harmonic distortion and Park-s pattern analyses in induction motors due to capacitor bank defects.
Abstract: In this paper we suggest a method for setting
electronic credits for the customers. In this method banks and
market-sites help each other to make doing large shopping through
internet so easy. By developing this system, the people who have less
money to buy most of the things they want, become able to buy all of
them just through a credit. This credit is given by market-sites
through a banking control on it. The method suggested can stop
being imprisoned because of banking debts.
Abstract: This paper examines the relationship between financial
risks and profitability of the conventional and Islamic banks in
Malaysia for the period between 1996 and 2005. The measures of
profitability that have been used in the study are the return on equity
(ROE) and return on assets (ROA) while the financial risks are credit
risk, interest rate risk and liquidity risks. This study employs panel
data regression analysis of Generalised Least Squares of fixed effects
and random effects models. It was found that credit risk has a
significant impact on ROA and ROE for the conventional as well as
the Islamic banks. The relationship between interest rate risk and ROE
were found to be weakly significant for the conventional banks and
insignificant for the Islamic banks. The effect of interest rate risk on
ROA is significant for the conventional banks. Liquidity risk was
found to have an insignificant impact on both profitability measures.
Abstract: Throughout the world, the Islamic way of banking and
financing is increasing. The same trend is also visible in Pakistan, where the Islamic banking sector is increasing in size and volume
each year. The question immediately arises as why the Pakistanis patronize the Islamic banking system? This study was carried out to
find whether following the Islamic rules in finance is the main factor for such selection or whether other factors such as customer service,
location, banking hour, physical facilities of the bank etc also have
importance. The study was carried by distributing questionnaire and
200 responses were collected from the clients of Islamic banks. The result showed that the service quality and other factors are as
important as following the Islamic rules for finance to retain old ustomers and catch new customers. The result is important and
Islamic banks can take actions accordingly to look after both the factors
Abstract: This paper presents two simplified models to
determine nodal voltages in power distribution networks. These
models allow estimating the impact of the installation of reactive
power compensations equipments like fixed or switched capacitor
banks. The procedure used to develop the models is similar to the
procedure used to develop linear power flow models of transmission
lines, which have been widely used in optimization problems of
operation planning and system expansion. The steady state non-linear
load flow equations are approximated by linear equations relating the
voltage amplitude and currents. The approximations of the linear
equations are based on the high relationship between line resistance
and line reactance (ratio R/X), which is valid for power distribution
networks. The performance and accuracy of the models are evaluated
through comparisons with the exact results obtained from the
solution of the load flow using two test networks: a hypothetical
network with 23 nodes and a real network with 217 nodes.
Abstract: There are many studies in the literature on
institutional investors- efforts to improve corporate governance,
generally focused on the role of pension funds and private equity
firms. There are only a few studies that analyze the influence of
development banks in the governance of investee companies. The
objective of this research is to examine the role of the Brazilian
Development Bank (BNDES) in the governance of listed companies.
Our analysis provides evidence that companies in which BNDES is a
shareholder have better governance.
Abstract: This paper studies the duration or survival time of commercial banks active in the Moscovian three month Rouble deposits market, during the 1994-1997 period. The privatization process of the Russian commercial banking industry, after the 1988 banking reform, caused a massive entry of new banks followed by a period of high rates of exit. As a consequence, many firms went bankrupt without refunding their deposits. Therefore, both for the banks and for the banks- depositors, it is of interest to analyze which are the significant characteristics that motivate the exit or the closing of the bank. We propose a different methodology based on penalized weighted least squares which represents a very general, flexible and innovative approach for this type of analysis. The more relevant results are that smaller banks exit sooner, banks that enter the market in the last part of the study have shorter durations. As expected, the more experienced banks have a longer duration in the market. In addition, the mean survival time is lower for banks which offer extreme interest rates.
Abstract: In this paper, various algorithms for designing quadrature mirror filter are reviewed and a new algorithm is presented for the design of near perfect reconstruction quadrature mirror filter bank. In the proposed algorithm, objective function is formulated using the perfect reconstruction condition or magnitude response condition of prototype filter at frequency (ω = 0.5π) in ideal condition. The cutoff frequency is iteratively changed to adjust the filters coefficients using optimization algorithm. The performances of the proposed algorithm are evaluated in term of computation time, reconstruction error and number of iterations. The design examples illustrate that the proposed algorithm is superior in term of peak reconstruction error, computation time, and number of iterations. The proposed algorithm is simple, easy to implement, and linear in nature.