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The purpose of this study is to analyze the effects of changes in capital adequacy ratio as a Macroprudential tool on the behavior of macroeconomics as well as the Iranian banking system. For this purpose, a Dynamic Stochastic General Equilibrium (DSGE) model is used and according to structural shocks, four observable variables including output gap, bank capital adequacy, inflation, and money base growth rate in the period spring 2004 to winter 2020, Along with some other pre-set parameters have been used in the Bayesian estimation process. Finally, the Impulse response functions of the model are interpreted in two scenarios Basel II or III on capital adequacy ratio. The results show that strengthening and improving the capital adequacy ratio in the short and medium term will have positive effects on economic growth and a significant reduction in inflation. The results also showed that Iranian banks react immediately to the strengthening of the capital adequacy ratio and try to adjust this ratio again by increasing lending. Therefore, in the medium and long term, we cannot hope to stabilize or reduce the process of creating liquidity and increase the money supply by strengthening the capital adequacy ratio of banks. Another finding of the model is that in the Iranian banking system, if the Capital adequacy ratio deviates from its equilibrium values, in the hypothetical conditions of the establishment of Basel III, macroeconomic variables and also the components of banking operations will face fewer fluctuations compared to Basel II. [ABSTRACT FROM AUTHOR]

Since the beginning of the 2008 financial crisis, the term “macroprudential” has appeared more and more often in specialized works and in researchers' discussions. After the 2008 crisis a new global financial stability framework is needed to reduce the probability and severity of a future financial crisis. This paper aims to the evaluate the importance of systemic risk analysis and identification for the calibration of macroprudential policies by exploring the extensive literature on systemic risk and macroprudential policies.

The experience of various crises that have occurred, including the impact of the Covid-19 pandemic, presents a challenge to implement macroprudential policies to ensure the financial system survives and continues to carry out its function in driving the economy. The existing macroprudential policies tend to be individual and focus on prudent banking and other financial institutions. Economic fluctuations that occur on the macro side will greatly impact, either directly or indirectly, the stock price index, as well as the company's internal indicators which are considered to have a major influence on the decisions of investors and potential investors to take action on the stock exchange. The type of research used in this research is quantitative research. The nature of this research is descriptive with a quantitative approach. The data collection technique in this research is Literature Study. The test carried out in this study is the multiple linear regression analysis test (multiple linear regression method), this study uses the ECM model to obtain the best model which includes the classical assumption test. The results of this study based on the partial short-term relationship test, it can be concluded that the Exchange Rate, Inflation, and TPF in the short term have no significant effect on the PNBS Stock Price Index. Meanwhile, short-term CAR has a significant positive effect on the PNBS Stock Price Index. Based on the results of the partial long-term relationship test, it can be concluded that in the long term, the Exchange Rate has a significant negative effect and TPF and CAR have a significant positive effect on the PNBS Stock Price Index while Inflation has no significant effect on the PNBS Stock Price Index. Based on the output results of the simultaneous short-term and long-term F test, it shows that all independent variables simultaneously have a significant effect on the PNBS Stock Price Index in the short term. Based on the provisions of the MUI DSN through the issued fatwas related to the Sharia capital market and Sharia shares, it is explained that Sharia stock investment to invest according to the perspective of Sharia economic law is allowed. [ABSTRACT FROM AUTHOR]

The International Financial Reporting Standard (IFRS) 9 relates to the recognition of an entity's financial asset/liability in its financial statement, and includes an expected credit loss (ECL) framework for recognising impairment. The quantification of ECL is often broken down into its three components, namely, the probability of default (PD), loss given default (LGD), and exposure at default (EAD). The IFRS 9 standard requires that the ECL model accommodates the influence of the current and the forecasted macroeconomic conditions on credit loss. This enables a determination of forward-looking estimates on impairments. This paper proposes a methodology based on principal component regression (PCR) to adjust IFRS 9 PD term structures for macroeconomic forecasts. We propose that a credit risk index (CRI) is derived from historic defaults to approximate the default behaviour of the portfolio. PCR is used to model the CRI with the macroeconomic variables as the set of explanatory variables. A novice all-subset variable selection is proposed, incorporating business decisions. We demonstrate the method's advantages on a real-world banking data set, and compare it to several other techniques. The proposed methodology is on portfolio-level with the recommendation to derive a macroeconomic scalar for each different risk segment of the portfolio. The proposed scalar is intended to adjust loan-level PDs for forward-looking information. [ABSTRACT FROM AUTHOR]

Using data on MENA country-banks, we study how interbank connections affect bank risk and returns. The findings indicate that interbank connections are determinantal to bank stability in the MENA region during periods of crisis, supportive of contagion effects. There is also a dampening impact on profitability. Over and above, the evidence for Islamic banks is supportive of contagion effects during the crisis, although their profitability is higher as well. Furthermore, macroprudential policies appear to exert a salutary impact on bank behavior, although this impact differs across the response variable: being effective for credit exposures with profits as the outcome and for funding exposure when non-performing loan ratio is the outcome variable. [ABSTRACT FROM AUTHOR]

While a rich literature has examined how central banks mobilize narratives to enrol publics in monetary policymaking, the effects of the narratives deployed in banking supervision remain neglected. Drawing on 21 expert interviews, this paper fills that lacuna through a study of stress testing, a technique that became a fixture of international banking supervision after the 2008 crisis and which the Bank of England is using to align the risk management of the United Kingdom's banks with its sense-making about emerging financial stability risks. I theorize the entanglements of the Bank's financial stability narratives with binding supervisory requirements as giving rise to a new form of 'infrastructural power'. This perspective explains why some financial sector actors see their decision-making autonomy being sapped away by the Bank's stress tests even though they work through banks' own risk sensitive calculative infrastructures. The paper's findings also point to how the infrastructural affordances of central banks' forward-looking narratives are pushing the temporal frontier of the state-economy boundary further into the future than has traditionally been considered an appropriate operational domain. [ABSTRACT FROM AUTHOR]

The financial crisis from 2008 and the following Eurozone crisis from 2012 created an incentive to establish a system of financial supervision at the European Union (“EU”) level, due to the fact that the policy tool commonly used turned out to be ineffective. With regards to banking supervision, the package of legislations: “CRR/CRD” and “BRRD” has been adopted as a response to financial system shortcomings, in order to make it more resilient and harmonised. One of the challenges was to take control of the so-called: “too big to fail” financial institutions, therefore next to macroprudential supervision, microprudential policy pools were introduced. This constituted the phenomena of the shift from regulationbased supervision to risk-based supervision with the aim of reducing the systemic risk in each and every EU Member State and, in turn, prevent possible future crises. In this paper, those methods will be gathered, presented, and discussed in the light of the current COVID-19 pandemic crisis.

The International Financial Reporting Standard (IFRS) 9 relates to the recognition of an entity’s financial asset/liability in its financial statement, and includes an expected credit loss (ECL) framework for recognising impairment. The quantification of ECL is often broken down into its three components, namely, the probability of default (PD), loss given default (LGD), and exposure at default (EAD). The IFRS 9 standard requires that the ECL model accommodates the influence of the current and the forecasted macroeconomic conditions on credit loss. This enables a determination of forward-looking estimates on impairments. This paper proposes a methodology based on principal component regression (PCR) to adjust IFRS 9 PD term structures for macroeconomic forecasts. We propose that a credit risk index (CRI) is derived from historic defaults to approximate the default behaviour of the portfolio. PCR is used to model the CRI with the macroeconomic variables as the set of explanatory variables. A novice all-subset variable selection is proposed, incorporating business decisions. We demonstrate the method’s advantages on a real-world banking data set, and compare it to several other techniques. The proposed methodology is on portfolio-level with the recommendation to derive a macroeconomic scalar for each different risk segment of the portfolio. The proposed scalar is intended to adjust loan-level PDs for forward-looking information.

Since the beginning of the 2008 financial crisis, the term "macroprudential" has appeared more and more often in specialized works and in researchers' discussions. After the 2008 crisis a new global financial stability framework is needed to reduce the probability and severity of a future financial crisis. This paper aims to the evaluate the importance of systemic risk analysis and identification for the calibration of macroprudential policies by exploring the extensive literature on systemic risk and macroprudential policies. [ABSTRACT FROM AUTHOR]

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Macroprudential policy is closely related to financial stability, systemic risk and the procyclicality of the financial sector, and has attracted considerable attention of scholars after the 2008 global financial crisis. Based on the 467 documents together with 14,597 references collected from the Web of Science core collection for the period of 2005–2018, this article conducts a scientometric analysis of macroprudential policy. The article applies basic analysis, co-citation analysis, cluster analysis, citation burstness detection, scientific research cooperation analysis and co-occurrence analysis of keywords. Through the document co-citation analysis, the article shows the key themes of macroprudential policy research which include: the effectiveness of macroprudential policies, financial market intermediaries, containment of systemic risks, monetary policy and liquidity. The article identifies influential scholars, documents, research institutions, journals and research hotspots in the field of research on macroprudential policy. The scientometric analysis in the article presents an objective perspective of the inheritance and evolution of scientific knowledge at different levels in the field of macroprudential policy. [ABSTRACT FROM AUTHOR]

Given the increased popularity of macroprudential measures in the aftermath of the great financial crisis (GFC), a key policy question to arise in certain mortgage markets is whether a significant access to credit issue exists amongst prospective homeowners because of these new policies. In this paper we assess whether such a problem arises in the context of the Irish mortgage market – a market particularly adversely impacted by the GFC. We use a microsimulation model to estimate the level of latent credit demand that could be serviced by the market given prudent credit risk assessment and the current macroprudential regulations. We then compare this demand to current market provision to explore whether a credit gap exists. Finally, we simulate how a public mortgage credit scheme or equity "help-to-buy" type instrument may help credit access. We find both instruments to be effective but would lead to somewhat higher house prices. [ABSTRACT FROM AUTHOR]

This study aims to investigate the effectiveness of macroprudential policies in mitigating the systemic risk in Indonesia. The study uses quantitative descriptive analysis with the Vector Error Correction Model (VECM) and emphasizes on the impact of two macroprudential instruments applied in Indonesia; Macroprudential Liquidity Buffer (MLB) and Countercyclical Capital Buffer (CCyB) to credit growth for conventional and financing growth for Sharia bank. This study employes monthly data over the periods M1 2010 to M10 2019 that obtained from Bank Indonesia's (BI) website (www.bi.go.di) and the data published monthly by Financial Service Authority (OJK); Indonesia Bank Statistic and Sharia Bank Statistic. The result indicates that MLB has a positive impact on credit growth and negative effect financing for Sharia Bank. Otherwise, CCyB shows the opposite results, where it has a negative effect on credit growth, while in the Sharia bank, CCyB has a positive effect. Therefore, it is sufficient to conclude that MLB has a capability to curb the systemic risk for Sharia bank, whereas CCyB is effective for conventional bank. [ABSTRACT FROM AUTHOR]

This study examines the impact of macroprudential regulations on bank profit efficiency. The latter is being estimated with a production frontier function using a cross-country dataset of more than 3000 banks from over 130 countries during 2013–2018. The results show that macroprudential regulatory policies diminish bank efficiency. This finding applies to both borrower-targeted and financial institutions-targeted policies, and it is robust to the inclusion of controls for microprudential regulations, financial consumer protection policies, and other county-level characteristics in the regressions. [ABSTRACT FROM AUTHOR]

The financial crisis from 2008 and the following Eurozone crisis from 2012 created an incentive to establish a system of financial supervision at the European Union ("EU") level, due to the fact that the policy tool commonly used turned out to be ineffective. With regards to banking supervision, the package of legislations: "CRR/CRD" and "BRRD" has been adopted as a response to financial system shortcomings, in order to make it more resilient and harmonised. One of the challenges was to take control of the so-called: "too big to fail" financial institutions, therefore next to macroprudential supervision, microprudential policy pools were introduced. This constituted the phenomena of the shift from regulationbased supervision to risk-based supervision with the aim of reducing the systemic risk in each and every EU Member State and, in turn, prevent possible future crises. In this paper, those methods will be gathered, presented, and discussed in the light of the current COVID-19 pandemic crisis. [ABSTRACT FROM AUTHOR]

This paper dicusses the special banking system stress tests which central banks for the USA, the UK and the euro area published shortly after the outbreak of COVID-19. Based on the limited quantitative information available on a comparable basis, this paper discusses how the results seem broadly consistent across institutions as well as with previously conducted exercises, once accounting for the respective differences in scenario severity. The paper also discusses how central banks identified specific design features characterising these COVID-19 exercises, employing the typology put forward in the Bank for International Settlements' (BIS) Financial Stability Institute (FSI) insights #12 — considering three building blocks: governance, implementation and outcomes. In particular, these special exercises set a new, more demanding benchmark for scenario adversity. Top-down modelling was also used to a larger extent to deal with uncertainty via alternative scenarios and to assess the impact of policies. Moreover, only aggregate results were published, with limited information on the results across banks. Finally, the connection with supervisory decisions appeared loose at most. The latter two features are not expected to remain in subsequent regular supervisory system-wide exercises. At the same time, the granularity of information collected, the banks in scope or the treatment of spillovers and feedbacks largely remained in line with standard supervisory stress-testing practices. This admittedly came short of what could be needed to get a more complete assessment of the impact of this specific crisis, from both a microprudential or macroprudential perspective. In particular, sector-specific information was sparse and banks' credit deleveraging explored only for the UK. Looking ahead, it appeared that stress-testing models can represent a valuable forecasting and monitoring tool, especially when baseline conditions are adverse enough and uncertainty prevails. The review also suggests that bottom-up and top-down system-wide supervisory stress-test results could coexist, thereby giving further concrete relevance to recent proposals on the future of European Union area-wide stress tests. [ABSTRACT FROM AUTHOR]

In this paper, we analyze the use of macroprudential policies in a low interest rate environment, where an occasionally binding zero lower bound (ZLB) constraint gives rise to aggregate demand externalities. We study this issue by using a dynamic stochastic general equilibrium (DSGE) model with financial frictions and a monetary policy rule that is subject to the ZLB. We find that, in a low interest rate environment, the occasionally binding ZLB creates additional scope for macroprudential intervention. When the interest rate is high and the two policies can perfectly coordinate, the optimal policy prescriptions behave as if they were independent. This is, however, no more the case, when the interest rate is low and/or when monetary policy and macroprudential policy cannot be perfectly coordinating. This more complex policy environment calls for more policy coordination. [ABSTRACT FROM AUTHOR]

After the global financial crisis of 2007–9, policymakers hailed macroprudential policy as the solution to financial markets' boom-bust patterns. Financial regulations would have to operate countercyclically, increasing in stringency during a boom while becoming lenient in a bust. Simultaneously, the procyclical effects of pre-crisis rules would have to be eliminated. Actual reforms, however, do not live up to these high hopes. In addition to the countercyclical policy framework's limited scope and ambition, its open-endedness is particularly striking. As policymakers have not specified when supervisors should (de)activate what instruments and how firms should measure risk, there is an inbuilt indeterminacy at macroprudential policy's core. I argue that obstacles inherent to the nature of systemic risk are key to understanding this policy outcome. As the financial system is reflexive, adaptive, and complex, there are hard limits to supervisors' ability to "read" the financial cycle. Furthermore, as macroprudential policy itself becomes "part of financial markets," countercyclical interventions may have systemically significant unintended consequences. This article empirically shows how policymakers at the global and EU level, confronted with these measurement and mitigation problems, ultimately opted for a limited and open-ended policy framework. [ABSTRACT FROM AUTHOR]

This study aims to examine reserve ratio (GWM), and capital buffer toward credit growth; the impact of macroeconomic variables and micro-banking specific factors toward credit growth in Islamic and Conventional Bank. This research using Vector Error Correction Model (VECM). This research finds that macroprudential policy based on GWM instrument positively influence the credit growth of conventional and Islamic banks. From macroeconomic, the credit growth is positively affected by GDP and negatively affected by BI Rate and inflation. Also, credit also affected by deposit funds and default rate ratio. Interestingly, there is a different impact of capital buffer instrument toward credit growth. Capital buffer instrument has negatively affected the financing growth of Islamic banks in Indonesia.DOI: 10.15408/aiq.v10i1.5446

The establishment of FSA has brought about the consequences of macroprudential policies which are still under the authority of Bank Indonesia while the microprudential policies have been the Auhtority of FSA. The problem in this study is what the appropriate definition, characteristics and coverage of macroprudential and microprudential supervision regulatory authority are in order to support the economic stability of a country. This type of research was a normative study. The results showed that the definition of macroprudential regulation and supervision policy is the authority given to Bank Indonesia to conduct regulation and supervision of banking institutions out of the institution and health fields, prudential aspect, and bank examination. The characteristics of microprudential and macroprudential banking regulation and supervision can be seen from the policy focus.

The present study uses a sample of up to 356 banks from 50 countries over the period 2002–2017 to examine whether and how macroprudential policies and corporate governance interact in shaping bank risk. Our results show that the impact of bank corporate governance on risk-taking depends critically on the macroprudential policies in force. In more detail, bank corporate governance has a negative or insignificant impact on bank stability when none or only a few macroprudential policies are in place; however, the impact becomes positive and statistically significant as the number of macroprudential policies increases. These findings seem to be attributed to financial institutions targeted macroprudential instruments rather than borrowing targeted ones. The results are robust to the use of various indicators of risk and numerous additional tests. [ABSTRACT FROM AUTHOR]

This research is aimed at analysing the cyclicality of banking financial stability, the impact of bank ownership status, bank size group and macroprudential policies on banking financial stability (Z‐score) of ASEAN‐5 countries. The study implements generalised method of moments system estimator and bank‐level data (2011:Q1–2017:Q1). The result indicates that the banking financial stability shows countercyclical behaviour. While government ownership does not affect financial stability, it tends to increase credit risk. Large and small bank group do not have significant different risk‐taking behaviour. Loan‐to‐Value ratio does not affect financial stability but significantly mitigates credit risk. An increase in reserve requirement lowers financial stability. [ABSTRACT FROM AUTHOR]

Pension funds in Aruba are required to invest at least 60% of their assets domestically. While this kind of localization requirement is common in many countries, the Aruban case is special because the economy is very small, both in absolute terms and even more so in relation to pension assets. Furthermore, the Aruban economy is almost exclusively dependent on tourism from the United States and Venezuela. These factors severely limit the opportunities to diversify risks domestically. Using a Monte Carlo simulation, we find welfare losses of up to USD 48,575 for moderately risk averse participants contributing for forty years into the mandatory pension scheme. The substantial losses suggest that pension funds should make better use of the flexibility allowed under the current regulatory regime and ramp up foreign holdings towards the statutory limit. Moreover, the Central Bank of Aruba should carefully weigh the benefits of the localization requirements, i.e. the support of the currency peg and local investment, against the welfare losses of pension participants. [ABSTRACT FROM AUTHOR]

Countercyclical investment strategies of large institutional investors such as insurance companies and pension funds can support financial stability, while procyclical investment behaviour is considered as destabilizing at a macro level. Yet, there is limited understanding of how insurance companies and pension funds invest during market shocks, such as the global financial crisis. Investigating the equity and fixed income portfolios of Dutch non-life insurers, life insurers and pension funds, we find evidence for procyclical behaviour by insurance companies (both life and non-life). For pension funds, we find evidence for countercyclical behaviour during market upturns. [ABSTRACT FROM AUTHOR]

Following the financial crash of 2008, many scholars have highlighted flaws and inadequacies in emerging macroprudential regulatory regimes. A missing ingredient in the political economy of post-crisis financial reform is the neglect of questions of social purpose in both policy debate and IPE scholarship. Social purpose is defined as a vision of the desirable or good economic system, derived from combinations of economic analysis and ethical reasoning. It is of particular relevance and importance to macroprudential regime building, because the foundational macroprudential conceptual frameworks developed by the Bank for International Settlements and the Geneva Group from 2000 onwards display the features of a macrosocial ontology that draw on a Minsky-Keynes tradition. By focusing on systemic outcomes and collective social expectations, such an ontology creates the basis for so-called macro-moralities that provide ethical justifications for public forms of systemic stabilisation. However, a variety of epistemological, professional, institutional and political barriers have impeded relevant expert groups and political actors’ willingness and ability to actively translate macroprudential ontology into a systemic vision, or sense of social purpose that could be communicated to the public at large. [ABSTRACT FROM AUTHOR]

Using a unique sample of mortgage loans for the UK buy-to-let market, we estimate a “double trigger” default model which links originating debt service and loan-to-value ratios to ex post default. We investigate whether the relationship between these ratios and default can be informative in the calibration of macro-prudential limits. We find default increasing with originating loan-to-value and falling in the origination debt service ratio. A non-linear cubic spline model is used to identify threshold effects and we identify clear turning points in these relationships. This analysis could provide one input into supervisory considerations when setting limits in a macro prudential context. In addition, we investigate how multiple loan portfolios interact with these thresholds with strong evidence to support tighter macroprudential restrictions on loans for second and subsequent properties. [ABSTRACT FROM AUTHOR]

The crisis demonstrated that microprudential regulation focusing on the risks taken by individual banks is not sufficient to prevent crises. This is because it ignores systemic risk. Six types of systemic risk are identified, namely: (i) panics - banking crises due to multiple equilibria; (ii) banking crises due to asset price falls; (iii) contagion; (iv) financial architecture; (v) foreign exchange mismatches in the banking system; (vi) behavioral effects from Knightian uncertainty. We focus on the first three as they are arguably the main causes of the 2007-9 crisis and consider regulatory and other policies to counteract them. [ABSTRACT FROM AUTHOR]

This article analyses the development of residential capitalism and financialisation in Australia. It outlines the series of economic vulnerabilities developing in the financial system, centred on household debt and inflated property markets. It then analyses why policy-makers have done so little to restrict the growth of household debt and house prices. I argue that financial policymakers have underestimated the financial vulnerabilities building up in Australia - as evidenced by the slow take-up of macroprudential policies. I outline four reasons: first, the excellent profit performance of the major banks; second, the policy predilection for idealised economic liberal regulation; third, the development of a politico-housing complex; and, finally, the growing role of household debt in ameliorating distributional conflict by underpinning growth. [ABSTRACT FROM AUTHOR]

Financial networks could become fragile during periods of economic and financial distress, since interconnectedness among participating firms could transmit and amplify adverse shocks. Relying on balance sheet data, complemented with information on interbank exposures, this paper analyses interconnectedness in an advanced emerging market economy, using two complementary approaches. The first approach focuses on the financial network topology, and finds that the financial system resembles a highly clustered small world network, with in and out-degrees, connectivity and exposures exhibiting a (double) heavy tail behaviour, which favours the formation of strong community structure and preferential attachment in the network. Bank size is Pareto distributed, and highly correlated with centrality. The second approach focuses on how the network topology contributes to the transmission of shocks by modelling default contagion, using balance sheet network analysis. It finds that direct counterparty credit exposure poses less risk to the banking system than fire sale losses triggered by liquidity shocks. Both approaches, either using a topological or induced system losses perspective, identify systemically important financial institutions (SIFIs) consistently by accounting for both macro and microprudential risk dimensions. [ABSTRACT FROM AUTHOR]

This paper aims to identify and specify guiding principles for designing and implementing a systemic liquidity stress test (SLST), a necessary complement to more standard, and by now systemic, solvency stress tests. The paper focusses on the types of data and models that would be ideally required. We also illustrate with a concrete example how to operationalise these principles for a system of European banks. The paper will then provide practical guidelines for policymakers and analysts building an SLST set-up or process, with a view to assessing liquidity risks and to understanding shock propagations in a complex financial system. Both elements are specifically relevant to macroprudential authorities. [ABSTRACT FROM AUTHOR]

Although the macroprudential regulation only became a central topic of bank regulation after 2008, recognising and analysing risk, what now we call macroprudential, has formed part of the thinking about banking risk for a long time. A real turn of events was caused by the Global Financial Crisis. Since then, as a consequence of the huge taxpayers’ burden and the mutual reinforcing effect of sovereign and banking crises, the main course of bank regulation has become the elaboration and implementation of regulation with a macroprudential perspective. This article reviews the history of the international evolution of macroprudential regulation from the perspective of both the regulation’s motivations and its conceptual and practical developments. Its main focus is the development of the ideas of a macroprudential perspective on prudential policy and the way these ideas eventually led to concrete experiences with macroprudential regulatory tools. As a conclusion, the author raises the question of whether the financial system has become more stable by implementing the current form of macroprudential regulation. [ABSTRACT FROM AUTHOR]

The severity and longevity of the recession caused by the 2007 financial crisis has highlighted the lack of a reliable macro-based financial regulation framework. As a consequence, addressing the link between the stability of the financial system as a whole and the performance of the overall economy has become a mandate for policymakers and scholars. Many countries have adopted macroprudential tools as policy responses for safeguarding the financial system. This paper provides a literature review of macroprudential policies, its objectives and the challenges that a macro-based framework needs to overcome, such as financial stability, procyclicality, and systemic risk. [ABSTRACT FROM AUTHOR]