Classification of LSIs into priority classes.
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Barely three months into the new year and we are happy to announce a monumental milestone reached - 150 million downloads.
\n\nThis achievement solidifies IntechOpen’s place as a pioneer in Open Access publishing and the home to some of the most relevant scientific research available through Open Access.
\n\nWe are so proud to have worked with so many bright minds throughout the years who have helped us spread knowledge through the power of Open Access and we look forward to continuing to support some of the greatest thinkers of our day.
\n\nThank you for making IntechOpen your place of learning, sharing, and discovery, and here’s to 150 million more!
\n\n\n\n\n'}],latestNews:[{slug:"step-in-the-right-direction-intechopen-launches-a-portfolio-of-open-science-journals-20220414",title:"Step in the Right Direction: IntechOpen Launches a Portfolio of Open Science Journals"},{slug:"let-s-meet-at-london-book-fair-5-7-april-2022-olympia-london-20220321",title:"Let’s meet at London Book Fair, 5-7 April 2022, Olympia London"},{slug:"50-books-published-as-part-of-intechopen-and-knowledge-unlatched-ku-collaboration-20220316",title:"50 Books published as part of IntechOpen and Knowledge Unlatched (KU) Collaboration"},{slug:"intechopen-joins-the-united-nations-sustainable-development-goals-publishers-compact-20221702",title:"IntechOpen joins the United Nations Sustainable Development Goals Publishers Compact"},{slug:"intechopen-signs-exclusive-representation-agreement-with-lsr-libros-servicios-y-representaciones-s-a-de-c-v-20211123",title:"IntechOpen Signs Exclusive Representation Agreement with LSR Libros Servicios y Representaciones S.A. de C.V"},{slug:"intechopen-expands-partnership-with-research4life-20211110",title:"IntechOpen Expands Partnership with Research4Life"},{slug:"introducing-intechopen-book-series-a-new-publishing-format-for-oa-books-20210915",title:"Introducing IntechOpen Book Series - A New Publishing Format for OA Books"},{slug:"intechopen-identified-as-one-of-the-most-significant-contributor-to-oa-book-growth-in-doab-20210809",title:"IntechOpen Identified as One of the Most Significant Contributors to OA Book Growth in DOAB"}]},book:{item:{type:"book",id:"6929",leadTitle:null,fullTitle:"Active Learning - Beyond the Future",title:"Active Learning",subtitle:"Beyond the Future",reviewType:"peer-reviewed",abstract:"Active learning is now a form of learning that accompanies the knowledge evolution that challenges the learner to promote it, but also encourages him to investigate and become emotionally involved in the task. The great key to obtaining this behavior successfully depends, therefore, on the subject's involvement and ability to undertake, so that active learning becomes emotional entrepreneurial learning that generates new ideas and new forms of knowledge. From memorization, we move on to inquiry, from questioning to constructive participation, from hypostasis to problem-solving, from generalization to critical thinking. When we look at this book, we see real examples, concrete, and senses, from the most important act of human nature: learning!",isbn:"978-1-83962-244-1",printIsbn:"978-1-83962-243-4",pdfIsbn:"978-1-83962-245-8",doi:"10.5772/intechopen.73460",price:119,priceEur:129,priceUsd:155,slug:"active-learning-beyond-the-future",numberOfPages:162,isOpenForSubmission:!1,isInWos:1,isInBkci:!1,hash:"fe54807c3ff7c1b500127e814988f5e2",bookSignature:"Sílvio Manuel Brito",publishedDate:"October 2nd 2019",coverURL:"https://cdn.intechopen.com/books/images_new/6929.jpg",numberOfDownloads:13145,numberOfWosCitations:4,numberOfCrossrefCitations:27,numberOfCrossrefCitationsByBook:0,numberOfDimensionsCitations:34,numberOfDimensionsCitationsByBook:0,hasAltmetrics:1,numberOfTotalCitations:65,isAvailableForWebshopOrdering:!0,dateEndFirstStepPublish:"April 26th 2018",dateEndSecondStepPublish:"May 17th 2018",dateEndThirdStepPublish:"July 16th 2018",dateEndFourthStepPublish:"October 4th 2018",dateEndFifthStepPublish:"December 3rd 2018",currentStepOfPublishingProcess:5,indexedIn:"1,2,3,4,5,6",editedByType:"Edited by",kuFlag:!1,featuredMarkup:null,editors:[{id:"170935",title:"Ph.D.",name:"Sílvio Manuel",middleName:"Da Rocha",surname:"Brito",slug:"silvio-manuel-brito",fullName:"Sílvio Manuel Brito",profilePictureURL:"https://s3.us-east-1.amazonaws.com/intech-files/0030O00002bS9HrQAK/Profile_Picture_2022-04-25T07:50:04.png",biography:"Silvio Brito holds a degree in human resources management and work psychology from ISLA, a master’s degree in management in the area of organizational behavior from the Lusíada University, and a Ph.D. degree in psychology from the University of Extremadura, Spain. He is an effective member of the Portuguese Society of Psychology, INFAD (Spain), and CITUR (Portugal), as well as an investigator of Psyche EX (Spain), a member of the chair of Entrepreneurs (Spain), and the founder and general secretary of AFIDE (Spain). He teaches Human Resources at the Polytechnic Institute of Tomar (Portugal) and a master’s course in Portugal and abroad. He is also a member of its jury commissions in Portugal and abroad, and an advisor on several scientific research papers. He has published several scientific, national, and international publications in the field of human resources, management, and psychology. He is an investigator member of the Human Talent Research Group of Organizational Behaviour and Human Resources.",institutionString:null,position:null,outsideEditionCount:null,totalCites:0,totalAuthoredChapters:"4",totalChapterViews:"0",totalEditedBooks:"3",institution:null}],equalEditorOne:null,equalEditorTwo:null,equalEditorThree:null,coeditorOne:null,coeditorTwo:null,coeditorThree:null,coeditorFour:null,coeditorFive:null,topics:[{id:"265",title:"Education",slug:"social-sciences-education"}],chapters:[{id:"65975",title:"Introductory Chapter: Active Learning—Beyond the Future",doi:"10.5772/intechopen.84758",slug:"introductory-chapter-active-learning-beyond-the-future",totalDownloads:1045,totalCrossrefCites:0,totalDimensionsCites:0,hasAltmetrics:1,abstract:null,signatures:"Sílvio Manuel da Rocha Brito",downloadPdfUrl:"/chapter/pdf-download/65975",previewPdfUrl:"/chapter/pdf-preview/65975",authors:[{id:"170935",title:"Ph.D.",name:"Sílvio Manuel",surname:"Brito",slug:"silvio-manuel-brito",fullName:"Sílvio Manuel Brito"}],corrections:null},{id:"63962",title:"Human Active Learning",doi:"10.5772/intechopen.81371",slug:"human-active-learning",totalDownloads:959,totalCrossrefCites:0,totalDimensionsCites:0,hasAltmetrics:0,abstract:"Active machine learning (AML) is a popular research area in machine learning. It allows selection of the most informative instances in training data of the domain for manual labeling. AML aims to produce a highly accurate classifier using as few labeled instances as possible, thereby minimizing the cost of obtaining labeled data. As machines can learn from experience like humans do, using AML for human category learning may help human learning become more efficient and hence reduce the cost of teaching. This chapter is a review of recent research literature concerning the use of AML technique to enhance human learning and teaching. There are a few studies on the applications of AML to the human category learning domain. The most interesting study was by Castro et al., which showed that humans learn faster with better performance when they can actively select the informative instances from a pool of unlabeled data instead of random sampling. Although AML can facilitate object categorization for humans, there are still many challenges and questions that need to be addressed in the use of AML for modeling human categorization. In this chapter, we will discuss some of these challenges.",signatures:"Akram M. Radwan",downloadPdfUrl:"/chapter/pdf-download/63962",previewPdfUrl:"/chapter/pdf-preview/63962",authors:[{id:"257723",title:"Ph.D.",name:"Akram",surname:"Radwan",slug:"akram-radwan",fullName:"Akram Radwan"}],corrections:null},{id:"63456",title:"Empowering Learners Using Active Learning in Higher Education Institutions",doi:"10.5772/intechopen.80838",slug:"empowering-learners-using-active-learning-in-higher-education-institutions",totalDownloads:1041,totalCrossrefCites:2,totalDimensionsCites:5,hasAltmetrics:0,abstract:"Higher education institutions are expected to produce skillful, problem solver, and competent graduates. This becomes possible when the instructors are using the appropriate teaching methodology and the learners are active and empowered in the teaching-learning process. In relation to this, constructivism theory emphasized that the learner is the center of the learning and the instructors playing an advising and facilitating role. In the teaching-learning process, when the learners are empowered using the appropriate teaching methodology, they feel a sense of confidence, capability, competence, and self-esteem, enabling them to meet life’s challenges more effectively. Therefore, a shift in theory (education theory) to a more student-centered approach using active learning is recommended because this approach has its own role to make the students creative and competent in their study. Thus, this chapter of a book tried to address the contribution of active learning in the empowerment of learners in higher education institutions.",signatures:"Abatihun Alehegn Sewagegn and Boitumelo M. Diale",downloadPdfUrl:"/chapter/pdf-download/63456",previewPdfUrl:"/chapter/pdf-preview/63456",authors:[{id:"257798",title:"Dr.",name:"Abatihun Alehegn",surname:"Sewagegn",slug:"abatihun-alehegn-sewagegn",fullName:"Abatihun Alehegn Sewagegn"},{id:"259191",title:"Dr.",name:"Boitumelo",surname:"Diale",slug:"boitumelo-diale",fullName:"Boitumelo Diale"}],corrections:null},{id:"63363",title:"The New Movement of Active Learning in Japanese Higher Education: The Analysis of Active Learning Case in Japanese Graduate Programs",doi:"10.5772/intechopen.80836",slug:"the-new-movement-of-active-learning-in-japanese-higher-education-the-analysis-of-active-learning-cas",totalDownloads:1177,totalCrossrefCites:3,totalDimensionsCites:3,hasAltmetrics:0,abstract:"Currently, active learning becomes the major concern for Japanese higher education institutions. In this chapter, active learning is defined that students study with clear purposes and are engaged in learning proactively. As a result, active learning brings some learning outcomes. Many previous studies have shown that the learning outcomes of students are strongly associated with the quality of pedagogy and student experience. Such pedagogy often includes active learning methods, and it is often expected that active learning methods are strongly associated with proactive learning of students. Such active learning methods have been introduced in the Japanese graduate programs so called leading graduate programs. In this chapter, after examining the theory and effectiveness of active learning, we will examine the practice of active learning methods introduced in leading graduate program of University of Tsukuba. That program is unique and interdisciplinary programs, which will lead to learning outcomes sought in the new knowledge-based society.",signatures:"Aki Yamada and Reiko Yamada",downloadPdfUrl:"/chapter/pdf-download/63363",previewPdfUrl:"/chapter/pdf-preview/63363",authors:[{id:"257359",title:"Dr.",name:"Reiko",surname:"Yamada",slug:"reiko-yamada",fullName:"Reiko Yamada"},{id:"257361",title:"Dr.",name:"Aki",surname:"Yamada",slug:"aki-yamada",fullName:"Aki Yamada"}],corrections:null},{id:"63639",title:"Cooperative Learning: The Foundation for Active Learning",doi:"10.5772/intechopen.81086",slug:"cooperative-learning-the-foundation-for-active-learning",totalDownloads:3307,totalCrossrefCites:17,totalDimensionsCites:20,hasAltmetrics:1,abstract:"The role of instructors is evolving from the presenter of information to the designer of active learning processes, environments, and experiences that maximize student engagement. The more active a lesson, the more students tend to engage intellectually and emotionally in the learning activities. Cooperative learning is the foundation on which many of the active learning procedures are based. Cooperative learning is the instructional use of small groups so that students work together to maximize their own and each other’s learning. Most of the active learning procedures, such as problem-based learning, team-learning, collaborative learning, and PALS, require that students work cooperatively in small groups to achieve joint learning goals. Cooperative learning is based on two theories: Structure-Process-Outcome theory and Social Interdependence theory. Four types of cooperative learning have been derived: formal cooperative learning, informal cooperative learning, cooperative base groups, and constructive controversy. There is considerable research confirming the effectiveness of cooperative learning. To be cooperative, however, five basic elements must be structured into the situation: positive interdependence, individual accountability, promotive interaction, social skills, and group processing.",signatures:"David W. Johnson and Roger T. Johnson",downloadPdfUrl:"/chapter/pdf-download/63639",previewPdfUrl:"/chapter/pdf-preview/63639",authors:[{id:"259976",title:"Dr.",name:"David",surname:"Johnson",slug:"david-johnson",fullName:"David Johnson"},{id:"263004",title:"Dr.",name:"Roger",surname:"Johnson",slug:"roger-johnson",fullName:"Roger Johnson"}],corrections:null},{id:"66545",title:"Dictionary Learning-Based Speech Enhancement",doi:"10.5772/intechopen.85308",slug:"dictionary-learning-based-speech-enhancement",totalDownloads:924,totalCrossrefCites:1,totalDimensionsCites:2,hasAltmetrics:0,abstract:"This chapter presents an overview of dictionary learning-based speech enhancement methods. Specifically, we review the existing algorithms that employ sparse representation (SR), nonnegative matrix factorization (NMF), and their variations applying for speech enhancement. We emphasize that there are two stages in a speech enhancement system, namely learning dictionary and enhancement. The two scenarios of learning dictionary process, offline and online, are discussed carefully as well. We finally present some evaluation methods and suggest the future lines of work.",signatures:"Viet-Hang Duong, Manh-Quan Bui and Jia-Ching Wang",downloadPdfUrl:"/chapter/pdf-download/66545",previewPdfUrl:"/chapter/pdf-preview/66545",authors:[{id:"268463",title:"Prof.",name:"Wang",surname:"Jai-Ching",slug:"wang-jai-ching",fullName:"Wang Jai-Ching"}],corrections:null},{id:"64546",title:"Innovative Approach for Renewing Instructional Design Applied in the Context of e-Learning",doi:"10.5772/intechopen.82246",slug:"innovative-approach-for-renewing-instructional-design-applied-in-the-context-of-e-learning",totalDownloads:773,totalCrossrefCites:0,totalDimensionsCites:0,hasAltmetrics:0,abstract:"This research aims to present an overview of an innovative approach for renewing instructional design by offering new form of research in e-learning design. Instructional innovations need to stand back and review the design of innovative components for e-learning system. We postulate in this chapter that the design of learning devices requires the design of complex multifaceted object which supports adaptive learning and lets learners bring into play their knowledge in order to carry out the prescribed tasks. Our approach is centred on the design of this complex object called pedagogical instrument, whose molecules are the smallest collection of the components retaining the properties of that material (according to the teaching intentions). The goal that we have set ourselves is to create the first specification of the micro-instructional engineering design. This specification aims at micro pedagogical technology which needs various types of competencies; our discussion implies that instructional innovation is better likely to succeed if it takes into account the actors, the constraints and the standards required to describe the tools allowing the integration of ICT.",signatures:"Sofiane Aouag and Hedjazi Djalal",downloadPdfUrl:"/chapter/pdf-download/64546",previewPdfUrl:"/chapter/pdf-preview/64546",authors:[{id:"259602",title:"Dr.",name:"Sofiane",surname:"Aouag",slug:"sofiane-aouag",fullName:"Sofiane Aouag"},{id:"259604",title:"Dr.",name:"Hedjazi",surname:"Djalal",slug:"hedjazi-djalal",fullName:"Hedjazi Djalal"}],corrections:null},{id:"63436",title:"Strategies for Digital Creative Pedagogies in Today’s Education",doi:"10.5772/intechopen.80695",slug:"strategies-for-digital-creative-pedagogies-in-today-s-education",totalDownloads:1687,totalCrossrefCites:2,totalDimensionsCites:2,hasAltmetrics:1,abstract:"Creativity and digital technologies are considered to be central for success and development in the current society, becoming crucial educational objectives worldwide. Nevertheless, education often fails to keep pace with creative and digital economies; this is mainly because teachers are not prepared for adopting pedagogical strategies that foster creativity or for fully exploiting the educational potential of digital technologies. Based on the seminal theories of creativity, we propose an innovative framework for applying creative teaching practices mediated by digital technologies: in the light of constructivist and constructionist approaches, we suggest a series of digital tools which are particularly suitable to the emergence of creativity, i.e. manipulative technologies, educational robotics and game design and coding. Furthermore, we shape the concept of digital creative pedagogies (DCP) and establish a set of characteristic components of teaching practices which contribute to the development of students’ creativity. Drawing on a substantial body of research, the chapter intends to embed educational creativity in the digital culture.",signatures:"Mario Barajas, Frédérique Frossard and Anna Trifonova",downloadPdfUrl:"/chapter/pdf-download/63436",previewPdfUrl:"/chapter/pdf-preview/63436",authors:[{id:"257879",title:"Prof.",name:"Mario",surname:"Barajas",slug:"mario-barajas",fullName:"Mario Barajas"},{id:"268386",title:"Dr.",name:"Frédérique",surname:"Frossard",slug:"frederique-frossard",fullName:"Frédérique Frossard"},{id:"268388",title:"Dr.",name:"Anna",surname:"Trifonova",slug:"anna-trifonova",fullName:"Anna Trifonova"}],corrections:null},{id:"63836",title:"Social and Ethical Dilemmas in Working with School Counselors in Secondary Schools for Students with Learning Disabilities",doi:"10.5772/intechopen.81160",slug:"social-and-ethical-dilemmas-in-working-with-school-counselors-in-secondary-schools-for-students-with",totalDownloads:1359,totalCrossrefCites:0,totalDimensionsCites:0,hasAltmetrics:0,abstract:"We examined the differences in the way school counselors handle social and moral dilemmas in secondary schools for children with learning disabilities. This study compared educational counselors with open approaches to counselors with more conservative approaches to social and moral dilemmas. The study raised two questions. (1) How do school counselors with more open pedagogical approaches handle social and moral dilemmas? (2) How do school counselors with more conservative pedagogical approaches handle social and moral dilemmas? The participants were 15 school counselors in secondary schools who worked with students with learning disabilities. We asked the counselors to describe a dilemma that they had experienced in the course of their work. The findings show that we can divide school counselors into two groups based on the way they handle dilemmas: a more open group and a more conservative group. The results of our study will enable us to improve the training programs for school counselors and provide more effective treatment approaches to solve social and moral dilemmas school counselors encounter.",signatures:"Saied Bishara",downloadPdfUrl:"/chapter/pdf-download/63836",previewPdfUrl:"/chapter/pdf-preview/63836",authors:[{id:"257952",title:"Dr.",name:"Saied",surname:"Bishara",slug:"saied-bishara",fullName:"Saied Bishara"}],corrections:null},{id:"62982",title:"Women Entrepreneurs as Employers",doi:"10.5772/intechopen.80309",slug:"women-entrepreneurs-as-employers",totalDownloads:873,totalCrossrefCites:2,totalDimensionsCites:2,hasAltmetrics:0,abstract:"This study is the first empirical research that focuses only on successful female entrepreneurs in North Cyprus to identify their motivational factors, personality traits and challenges shown and faced by them. To accomplish this objective, an in-depth analysis of 10 female entrepreneurs employing at least 5 staff is used. Results indicate that pull factors are the key motivational drives of successful female entrepreneurs. Self-determination and an achievement-oriented mind set together with honesty and reliability in business life are found to be their main personality traits. The level of risk especially due to the Cyprus conflict and difficulties in accessing funding are found to be the key constraints on these successful female entrepreneurs.",signatures:"Emete Toros and Mehmet Altinay",downloadPdfUrl:"/chapter/pdf-download/62982",previewPdfUrl:"/chapter/pdf-preview/62982",authors:[{id:"261142",title:"Ph.D.",name:"Emete",surname:"Toros",slug:"emete-toros",fullName:"Emete Toros"},{id:"261144",title:"Prof.",name:"Mehmet",surname:"Altinay",slug:"mehmet-altinay",fullName:"Mehmet Altinay"}],corrections:null}],productType:{id:"1",title:"Edited Volume",chapterContentType:"chapter",authoredCaption:"Edited by"},subseries:null,tags:null},relatedBooks:[{type:"book",id:"6389",title:"Entrepreneurship",subtitle:"Trends and Challenges",isOpenForSubmission:!1,hash:"f30626e6cc598d69d90838d24db873b8",slug:"entrepreneurship-trends-and-challenges",bookSignature:"Sílvio Manuel Brito",coverURL:"https://cdn.intechopen.com/books/images_new/6389.jpg",editedByType:"Edited 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It is becoming evident that both environmental and genetic factors may influence the development of many diseases [1–7]. It is therefore important to consider gene-environment interactions when studying diseases related to exposure to different hazards and lifestyle factors.
\nEnvironmental and lifestyle factors have been investigated in many epidemiological studies using self-reported information obtained by questionnaires, interviews, records or measurements of exposure. However, very few epidemiological studies included the information on genetic risk factors. Similarly, many studies investigating genetic factors obtained little information on environmental factors and lifestyle. Genetic predisposition can be presumed from family history, from phenotypic characteristics (e.g. metabolic capacity) or, most importantly, from an analysis of deoxyribonucleic acid (DNA) sequence [8].
\nThe research into gene-environment interactions requires the information on both environmental/lifestyle and genetic factors [7, 8]. Primary candidates for gene-environment interaction studies have been mostly genes coding for xenobiotic-metabolising enzymes [3]. Genetic variability in these genes may lead to interindividual differences in the capacity for xenobiotic metabolism, thus modifying an individual’s susceptibility to the development of disease [3].
\nThe approach to the analysis of gene-environment interactions is presented using the example of our study into asbestosis, which is one of the most frequent asbestos-related diseases. According to the model of causation, asbestos exposure, genetic factors and possibly also unknown causes have a crucial role in the occurrence of asbestosis [9]. Although asbestos-related diseases are among the most extensively studied occupational diseases, and the causal relationship between asbestos exposure and asbestosis has been well proved [10–14], relatively little has been known about the genetic factors that might modify an individual’s susceptibility to the development of this disease [6, 15–17].
\nAsbestos is a commercial name for a group of fibrous silicates with certain toxic properties, such as the ability to produce inflammation, fibrous scarring and cancer [18–20]. Based on their physical and chemical structures, asbestos fibres can be classified into two major groups: chrysotile and amphiboles [20–25].
\nOccupational exposure to asbestos occurs in asbestos mining, production and milling of asbestos fibres; in asbestos cement industry; in construction; in machine and insulation product industry; in ship building or repair; in car industry; in production of brakes and clutches; in car, bus, lorry, railway carriage and aeroplane repair; in asphalt mixing; in disposal of asbestos waste and materials; in brickworks; in textile industry and in other industries and activities [20, 22, 26–28].
\nLocal population can be exposed to asbestos mostly in the neighbourhood of factories where asbestos is produced or used (exposure to polluted air, water and food). The source of environmental asbestos exposure may also be asbestos cement sheets, asbestos insulators and other asbestos-containing products. Asbestos fibres may also be found in water which flows through asbestos cement pipes, especially if they have been damaged. Workers exposed to asbestos may bring asbestos home to the family members on clothing or hair [26–28].
\nAsbestos exposure has been associated with the development of asbestosis; pleural diseases, such as pleural plaques, diffuse pleural thickening and pleural effusion and several types of cancer: lung cancer, diffuse malignant mesothelioma of the pleura and peritoneum, cancer of the larynx, cancer of the ovary as well as the cancers of the buccal mucosa, the pharynx, the gastrointestinal tract and the kidney [11, 12, 16, 25, 29–41].
\nAsbestosis is an interstitial pulmonary process that develops into diffuse pulmonary fibrosis after a long latency period [42, 43]. The disease continues to progress even after the cessation of exposure, and the process is irreversible. One of the earliest symptoms may be dyspnoea, which is manifested at first only after strenuous exertion, but subsequently with less and less exertion, and eventually it appears even at rest. Another non-specific symptom and usually late manifestation of the disease is irritating and dry, usually non-productive cough, sometimes associated with chest pain [42, 44]. Pulmonary function changes are characterised mostly by a restrictive impairment [27, 28, 42–44]. Later, obstructive airway impairment may also occur [27, 28]. On chest radiographs, small irregular opacities appear initially in the lower lung fields that may enlarge with more advanced disease and involve also middle lung fields [27, 42–44]. Characteristic features of asbestosis on high-resolution computed tomography (HRCT) include fibrotic intralobular interstitial thickening and interlobular septal thickening, subpleural lines and opacities, parenchymal bands, ground-glass opacities and, in more severe disease, variable honeycombing [27].
\nThe pathogenesis of asbestosis is still poorly understood. The findings of studies on cell cultures and animal models indicate that reactive oxygen and nitric species (ROS and RNS) are involved in the pathogenesis of this disease [23, 30, 45–55]. The most important reactive metabolites in the pathogenesis of asbestos-related lung diseases are superoxide anion (O2−), hydrogen peroxide (H2O2), hydroxyl radical (OH˙) and nitric oxide (NO) [46, 48, 56, 57]. Asbestos may stimulate the production of ROS in two different ways. The first mechanism involves redox-active iron (Fe2+, Fe3+) in asbestos that catalyses the formation of OH˙, whereas the second mechanism involves the production of ROS by alveolar macrophages during the phagocytosis of asbestos fibres [58–60]. Reactive oxygen species in lungs may lead to the production of cytotoxic and potentially genotoxic electrophilic compounds [46].
\nIt has also been suggested that asbestos fibres may upregulate the activity of inducible nitric oxide synthase (iNOS), thus inducing the production of NO by alveolar macrophages and pulmonary epithelial cells [51, 61–64]. Because NO is a free radical, it reacts readily with other reactive oxygen metabolites (as, for instance, O2−), leading to the formation of toxic metabolites, most importantly peroxynitrite [65–69]. Nitric oxide may play a role in the initiation and progression of asbestosis [51, 64, 70, 71]. However, the data presented by Dörger et al. [72] indicate that iNOS-derived NO plays a dual role in acute asbestos-induced lung injury and that although iNOS deficiency resulted in an exacerbated inflammatory response, it improved oxidant-promoted lung tissue damage.
\nReactive oxygen species and RNS can damage all types of biomolecule, including lipids, proteins and deoxyribonucleic acid (DNA). Complex defence mechanisms, including enzymes, proteins and antioxidants, are involved in the prevention of cell damage [73, 74].
\nHuman tissues contain specific enzyme systems to detoxify ROS and RNS. Superoxide dismutases (SODs) and catalase (CAT) together with glutathione peroxidases represent an important line of the primary antioxidant enzyme defence system against ROS. Superoxide dismutases catalyse the dismutation of O2− to H2O2 and oxygen (O2), whereas CAT subsequently catalyses the conversion of H2O2 to water (H2O) and O2 [48, 75–82]. Three distinct SOD isoenzymes have been identified in mammals: a cytosolic copper-zinc SOD (CuZnSOD or SOD1) localised in cytoplasmic compartment with cooper (Cu) and zinc (Zn) in the catalytic centre, manganese SOD (MnSOD or SOD2) that is localised in mitochondria and uses manganese (Mn) as a cofactor and extracellular SOD (ECSOD or SOD3) that also contains Cu and Zn in the catalytic centre and is located in the extracellular space [74, 82, 83].
\nAnother important family of enzymes involved in the detoxification of xenobiotics and electrophiles produced by ROS and RNS is glutathione S-transferases (GSTs) [84–87]. They catalyse the conjugation of reduced glutathione to different electrophiles [88]. These conjugation reactions mostly result in less reactive products [89]; however, in some cases, the products are more reactive and consequently more harmful than the parent compound [90, 91]. Seven classes of cytosolic GST isoenzymes have been recognised in mammals (Alpha, Mu, Pi, Sigma, Theta, Omega, Zeta) [84–86, 91, 92]. The major GST enzyme in the human lung is GSTP1, which belongs to the Pi class [90, 91, 93], while GSTM1 (Mu class) and GSTT1 (Theta class) were most frequently investigated [90, 91].
\nGenetic polymorphisms are the most common cause for genetic variability of detoxification and antioxidative enzymes [15–17, 80, 91, 94–99].
\nThe most common functional single nucleotide polymorphism (SNP) of the
ECSOD is secreted into extracellular space where it binds lung matrix components and inhibits their fragmentation in response to oxidative stress [101, 102]. In the
The most common functional SNP of the catalase gene (
Regarding GSTs, the most common polymorphism of the
The human
We are presenting the example of an approach to gene-environment interaction research by summarising and building on the results of our studies that aimed to investigate the influence of interactions between different genotypes (
A nested case-control study included 262 cases with asbestosis and 265 controls with no asbestos-related disease. All the subjects included in the study were employed in the asbestos cement manufacturing plant of Salonit Anhovo, Slovenia, and occupationally exposed to asbestos. Data on smoking were obtained from all subjects using a standardised questionnaire [25, 120] and checked during the interview. The data on the cumulative asbestos exposure, expressed in fibres/cm3-years [intensity in fibres per cm3 of air multiplied by time of exposure expressed in years], were available for all the subjects from the previous study [25]. The diagnosis of asbestosis or ‘no asbestos-related disease’ was based on the Helsinki Criteria for Diagnosis and Attribution of Asbestos Diseases [121] and on the American Thoracic Society recommendations [122]. Each case was confirmed by an interdisciplinary group of experts (consisting of an occupational physician, a radiologist and a pulmonologist) of the State Board for Recognition of Occupational Asbestos Diseases at the Clinical Institute of Occupational Medicine. Capillary blood samples from the finger tips of all cases and controls have been collected on FTA Mini Cards (Whatman Bioscience) for the isolation of deoxyribonucleic acid (DNA) and genotyping. All the genetic analyses were performed using PCR-based approaches as previously described [6, 14, 116–119].
\nBefore testing interactions, the associations between outcome [in our case asbestosis] and individual variables were assessed using univariate logistic regression analysis. As expected, asbestosis was associated with cumulative asbestos exposure, whereas no association was found with smoking (OR = 0.98, 95%; CI = 0.69–1.39 for ever versus never smoking) [14]. Analysing the association between asbestosis and individual genotypes, an important association was observed between asbestosis and
Univariate modelling was followed by multivariate analysis and interactions as the genes usually do not act independently, but may interact. To test the interactions, simple categorical models based on stratification were constructed first, followed by logistic regression models using dummy variables. The analysis showed that the association between asbestosis and
Next, interactions between different genotypes and an important lifestyle factor—in our case smoking—have been tested. We observed that the
Finally, we present an example of the interaction between genotypes and environmental exposure, in our case occupational exposure to asbestos. In order to assess the interactions between the genotypes and occupational cumulative asbestos exposure, we have first constructed simple categorical models that included cumulative asbestos exposure categorised as follows: ≤11.23 fibres/cm3-years and >11.23 fibres/cm3-years (11.23 fibres/cm3-years was the average cumulative asbestos exposure for the controls). In our analysis, we have observed that the association between asbestosis and cumulative asbestos exposure was modified by the iNOS (CCTTT)n genotypes (OR = 5.74; 95% CI = 3.30–9.99) [6].
\nThe findings of our studies suggest that in addition to environmental and/or occupational exposure to different hazards and lifestyle factors, the genetic factors and the interactions between different genotypes, between genotypes and lifestyle factors and between genotypes and environmental/occupational exposure to hazards may have an important influence on the development of diseases and should be further investigated [6, 130–133]. In agreement with our observations, an increasing number of molecular epidemiological studies support the importance of investigating not only genetic predisposition but also gene-gene and gene-environment interactions when assessing the risk of developing diseases [134–136]. Novel high-throughput technologies may also allow the investigation of interactions between exposure to hazards and epigenetic changes in disease risk assessment [137].
\nThis work was financially supported by the Slovenian Research Agency [grants L3-3648 and P1-0170].
\nThe
As defined in the Guide to Banking Supervision, the European Central Bank (ECB) has identified three objectives to be achieved by the
The safety and soundness of the European banking system.
Integration and stability of the financial sector.
The increased consistency of banking supervision across the Euro area.
The Single Supervisory Mechanism (SSM) has no legal personality and its purpose is the prudential supervision of banking activities. It consists of the ECB, which also plays the lead role, and the national competent authorities (NCAs) of the participating countries. Although the ECB has the ultimate responsibility for decision-making, it carries out its supervisory tasks under the MVU in close cooperation with the NCAs. Working with the NCAs, the ECB performs direct supervision of institutions defined as Significant (SIs). On the other hand, the supervision of Less Significant institutions (LSIs) is carried out directly by the NCAs in a unified supervisory approach guided by the general guidelines and instructions given by the ECB. In addition, all supervisory tasks that are not conferred within the MVU, such as consumer protection or anti-money laundering, remain with the NCAs. The criteria for determining whether banks can be considered significant – and therefore subject to direct ECB supervision – are defined in the MVU Regulation.
\nTo qualify as significant, banks must meet at least one of these criteria4:
The total value of assets exceeds €30 billion or, unless the total value of assets is less than €5 billion, exceeds 20% of national GDP.
Be one of the three most significant credit institutions in a Member State.
Receive direct assistance from the European Stability Mechanism.
The total value of assets exceeds €5 billion and the ratio of cross-border assets in more than one other participating Member State to total assets exceeds 20%, or the ratio of cross-border liabilities in more than one other participating Member State to total liabilities exceeds 20%.
The ECB may decide at any time to classify a bank as significant to ensure that high supervisory standards are applied consistently, and conducts periodic reviews of all licenced banks within the SSM. The classification of banks may be changed due to the normal operations of credit institutions or as a result of extraordinary events such as mergers or acquisitions. In such cases, the ECB and the national supervisory authorities involved coordinate the transfer of supervisory responsibilities. The purpose of balancing the regulatory requirements for institutions of different sizes is to promote the stability of the financial system and to ensure a level playing field within the financial system and an appropriate comparison of risk, capital and liquidity profiles between intermediaries of different sizes and operational complexity.
\nFor significant institutions, the ECB carries out its supervision through a specific methodology, the periodic assessment of their economic and financial situations, the verification of compliance with prudential rules, the adoption of any necessary supervisory measures, and the performance of stress tests. All of this is done by the Joint Supervisory Teams (JST) composed of staff from the ECB and the NCAs of the significant institutions’ countries of establishment. The JST is responsible for drafting and organising the supervisory review programme, as well as for performing day-to-day supervision at consolidated, sub-consolidated and individual levels (assessments of the institutions’ risk profiles, business models and strategies, risk management and control systems and internal governance). JST members may also participate in on-site inspections and investigations of internal models.
\nIn our country, the supervision of less significant banks and banking groups is instead exercised directly by the Bank of Italy with a view to unitary supervision under the guidelines and general instructions given by the ECB. Among the less significant banks are the so-called “High Priority” banks for which the exchange of information between the BoI and the ECB is more intense. (These are the first banks “below the threshold” of €30bn in assets.) However, the BoI retains full and autonomous competence in the areas of consumer protection, combating money laundering and terrorist financing, supervision of payment services and markets for financial instruments, and supervision of non-banks and branches of non-EU banks.
\nAs regards SIMs and OICR managers, the Consolidated Law on Finance (TUF) assigns to the Bank of Italy supervisory tasks for risk containment, stability and sound and prudent management, and to Consob those for the transparency and propriety of the conduct of these intermediaries in offering investment products.
\nThe First Pillar of the MUV (SSM) is based on the so-called Basel framework, or rather on the following regulatory sources:
CRR (
CRD IV (
Starting from 2021, the two regulatory packages will be gradually replaced by the new CRR II and CRD V, whose regulatory changes define the final structure of the new “
CRR II and CRD V.6\n
Basel III: Finalising post-crisis reforms.
EU Regulation 2017/2401–2402 (
The prudential supervisory framework for risk and capital (Basel IV) has always been ideally divided into three pillars:
\n
\n
\n
In general terms, the MUV is based on the European single rulebook, which therefore consists – in addition to the Regulation and the Directives (Directive 2013/36/EU-CRD IV, EU Regulation no. 575/2013 - CRR, Directive 2014/49/EU -
The entire structure of the Single Supervisory Mechanism is based on a principle of proportionality aimed at achieving a uniform application of the rules while respecting the diversity of banks’ business models, identities, size and operational complexity. However, the operational implementation of this principle does not always seem to have been able to fully achieve these objectives, which is why the application of this principle continues to be a priority on the agenda of European authorities.
\nHowever, the approach of European supervision has historically been oriented towards the definition of a set of rules equal for all, in order to ensure homogeneity of treatment for different banks: the principle of “one size fits all”. However, this approach, while further tightened in the immediate post-crisis years, has been revisited from a proportional perspective (at least in theory) with the introduction of the current CRR and CRD IV and the future entry into the scene of the new CRR II and CRD V.
\nThe application of the principle of proportionality within the Single European Supervisory Mechanism is therefore substantiated by the application of the same rules to all banking intermediaries, but with a “depth” and an articulation proportionate to the significance and/or operational complexity. The significance of an intermediary is relevant to the identification of the competent Supervision Authority, even though, in this regard, an intense collaboration between the European Central Bank and the NCAs is foreseen to guarantee the harmonised application of the Community rules. Specifically, the SSM provides that, with regard to the supervision of the
Priority classes | \nIntermediary | \n
---|---|
Very High | \nAny LSIs identified as O-SIIs | \n
High | \nHigh priority LSI | \n
Medium | \nMedium priority LSI | \n
Low | \nLow priority LSI | \n
Classification of LSIs into priority classes.
Source: Bank of Italy.
Based on this classification, the NCAs establish the intensity of Pillar II assessments, supervisory expectations and information requirements at the data collection stage, calibrated according to the classes.10 Supervisory activities for less significant institutions consist of regular assessments conducted jointly by the ECB and the NCAs of the Member States, with the aim of making the best use of the information available to the national authorities. Moreover, for high priority LSIs, the ECB examines the supervisory procedures and relevant draft decisions established by the NCAs themselves11.
\nThe subject of the proportionality of the rules of supervision and surveillance in the European banking system is of strategic importance, also due to the fact that the LSIs represent a pillar of the European real and financial economy, even though 80% of these institutions are concentrated in nine countries (primarily Austria, Germany and Italy, but also Croatia, Denmark, Luxembourg, Poland, Slovakia and Slovenia).12 It is interesting, in this context, to observe how the principle of proportionality is implemented overseas.
\nIn fact, US banking regulations basically implement the Basel standards for large banks, while the provisions of the reform known as the “Wall Street Reform” or also the “Dodd-Frank Act”13 establish a series of rules tailored to the size of small and medium-sized banks, which make up about 95% of US credit institutions. From the outset, the main objective of the definition of new common rules was to guarantee greater stability to the US financial apparatus and above all to avoid the spread of systemic risk. Although this objective was perfectly consistent with that of European legislators, the approach used on the other side of the Atlantic was more oriented towards defining more stringent rules for large banks (identified as those with total assets of over $50 billion), and therefore by definition carrying systemic risk, while a set of new, less onerous rules proportionate to their operations was envisaged for community banks. In addition, in 2018, the Dodd-Frank Act was revised and amended with a view to further calibrating it towards a more pervasive application of the proportionality principle. For example, while initially the more stringent rules on stress testing, MREL requirements and the weakening of the role of advanced internal models were only applicable to institutions with assets in excess of $50 billion, from 2019 they would be limited to institutions with assets in excess of $250 billion. In the case of smaller banks, the legislature instead focused its attention on the need to hold high capital requirements, which – especially initially – resulted in the closure of smaller, underperforming banks [1].
\nWith regard to Community banks, however, the principle of proportionality does not take the form of applying the same regulatory requirements with a different degree of depth, but rather provides for total exemption from certain supervisory standards (this is the case for banks with assets of less than $10 billion, which are not subject to the macroprudential stress tests that are mandatory for all larger institutions, including those with assets of between $10 and $50 billion). The application in the United States of the regulatory standards envisaged by Basel III applies, with due differentiation, to two categories of credit intermediaries:
\n\nTable 2\n summarises the regulatory capital and liquidity requirements for different types of banks operating in the US system.
\nApplicable Regulations | \nCurrent Tailoring of Rules | \n||||
---|---|---|---|---|---|
G-SIB | \nInt’l Active ($250b+) | \nRegional ($50-250b) | \nMid-size ($10-50b) | \nSmall (<$10b) | \n|
\n | \n|||||
Global market shock for trading | \nYes (6/8) | \nNo | \nNo | \nNo | \nNo | \n
Counterparty default scenario | \nYes (8/8) | \nNo | \nNo | \nNo | \nNo | \n
Qualitative Fed-run process review | \nYes | \nYes | \nNo | \nNo | \nNo | \n
Quantitative Fed-run stress tests | \nYes | \nYes | \nYes | \nNo | \nNo | \n
Fed ability to object to capital plans through CCAR | \nYes | \nYes | \nYes | \nNo | \nNo | \n
\n | \n|||||
Quantitative Fed-run stress tests | \nYes | \nYes | \nYes | \nNo | \nNo | \n
Company-run stress tests | \nYes | \nYes | \nYes | \nYes | \nNo | \n
Annual stress test | \nYes | \nYes | \nYes | \nYes | \nNo | \n
Mid-year stress test | \nYes | \nYes | \nYes | \nNo | \nNo | \n
\n | \n|||||
Risk-based | \n\n | \n | \n | \n | \n |
G-SIB capital buffers | \nYes | \nNo | \nNo | \nNo | \nNo | \n
Countercyclical capital buffer | \nYes | \nYes | \nNo | \nNo | \nNo | \n
Including AOCI changes in capital | \nYes | \nYes | \nNo | \nNo | \nNo | \n
Risk-based (i.e., Base III) | \nYes | \nYes | \nYes | \nYes | \nYes | \n
Leverage ratio | \n\n | \n | \n | \n | \n |
Enhanced Supplementary leverage ratio (eSLR) | \nYes | \nNo | \nNo | \nNo | \nNo | \n
Supplementary leverage ratio (SLR) of 3% | \nYes | \nYes | \nNo | \nNo | \nNo | \n
U.S. leverage ratio | \nYes | \nYes | \nYes | \nYes | \nYes | \n
TLAC and long-term debt requirement | \nYes | \nNo | \nNo | \nNo | \nNo | \n
\n | \n|||||
Liquidity coverage ratio (LCR) | \nYes | \nYes | \nNo | \nNo | \nNo | \n
Modified LCR | \nNo | \nNo | \nYes | \nNo | \nNo | \n
Net stable funding ratio (NSFR), proposed rule | \nYes | \nYes | \nNo | \nNo | \nNo | \n
Modified NSFR, proposed rule | \nNo | \nNo | \nYes | \nNo | \nNo | \n
Breakdown of the main regulatory obligations in the US system.
Source: U.S. Treasury (A Financial System That Creates Economic Opportunities - Banks and Credit Unions. Pag.41. www.treasury.gov).
A comparison of the regulatory indicators in the US and European systems reveals some differences in the proportionate application of supervisory rules with respect to bank size. First, while US regulation provides for a full exemption from stress testing for community banks, in Europe this exemption does not apply to LSIs. With respect to capital requirements, however, the main difference is that while the EU framework allows NCAs to require even smaller institutions to hold an additional countercyclical capital buffer in good times, this only applies to banks with assets greater than $250 billion in the US. Ultimately, evidence of different application of the proportionality principle can also be found with respect to liquidity requirements. Specifically, while in the US full compliance with the LCR (Liquidity Coverage Ratio14 [2]) and NSFR (Net Stable funding Ratio)15 [2] is only required for banks with assets greater than $250 billion, and less stringent application is demanded of institutions with assets between $50 billion and $250 billion, in Europe compliance with an LCR of at least 100% is mandatory for all intermediaries. In addition, as of 2021, compliance with an NSFR of at least 100% will also be mandatory for all intermediaries, although a simplified version will be available for small and less complex institutions. \nTable 3\n below summarises the differences just discussed.
\nSupervisory obligations | \n\n | \n\n | \n
---|---|---|
\n
| \nNO | \nYES | \n
\n
| \nNO | \nYES | \n
\n
| \nNO | \nYES | \n
\n
| \nNO | \nYES | \n
Differences between the US and the EU in the application of the principle of proportionality.
Source: Author elaboration.
Finally, the application of the principle of proportionality in the US banking system manifests its effects also in the phase of resolution of banks in crisis, contrary to what actually happens in the European Banking Union. In Europe, in fact, as highlighted by Masera [3], while the SSM provides for the assignment of the tasks of supervision on the LSIs to the NCAs, the performance of this activity is effectively limited only to the banks in ordinary administration, and as highlighted in paragraph 3.2, in the cases in which a Less Significant bank shows signs of vulnerability, the ECB has the right to take over the supervision of the institution, making the principle of subsidiarity prevail over that of proportionality. In the US, on the other hand, resolution interventions are led by the Orderly Liquidity Authority for banks subject to
In this context, it should be noted that the definition of the identification threshold for banks to which size-related measures are to be applied is not straightforward and can hardly be standardised. The difficulty lies primarily in defining criteria that are adaptable to the financial systems of different jurisdictions, which are different from each other. Policymakers and the literature have provided much food for thought [3, 4, 5] on the effective application of a two-tiered approach to less complex institutions identified through parameters such as:
\nArticle 97 of the CRDIV (Directive 2013/36) requires supervisors to review the organisation, strategies, processes and methodologies that banks put in place to address the range of risks they face.
\nThe Supervisory Review and Evaluation Process (SREP) is conducted annually by the supervisory Authorities to verify that each bank has implemented strategies, processes, capital and liquidity appropriate to the risks to which it is or might be exposed and that they have appropriate capital and organisational safeguards in place to address the risks they face, ensuring overall balance of operations and market resilience.
\nThe SREP process is not new, as it has always been carried out before the SSM by national supervisors with different and non-homogeneous methodologies and practices. For this reason, the European regulation intended to standardise the SREP methodologies and practices used by the different Authorities at the level of the Banking Union.
\nSREP entered into force in 2016 for IS and only from 2018 became mandatory first for high priority LSIs and then for other LSIs. Following the harmonisation of the SREP process for LSIs, national authorities have been given full flexibility regarding the definition of Pillar 2 guidelines (P2G) [6]. Finally, one of the focal points of the MUV is the possibility for the ECB to take over the supervision of LSIs that are more vulnerable, for example due to a change in materiality profile or due to a choice by the Central Bank as a result of new assessments of the impact the institution might have on the financial system. Supervision of less significant institutions takes the form of periodic assessments conducted jointly by the ECB and the national supervisory authorities of the Member States, with the aim of making best use of the information available to the national authorities. Moreover, for high priority LSIs, the ECB examines the supervisory procedures and relevant draft decisions established by the NCAs themselves [6].
\nThe SREP is a process by which the European Central Bank and the NCA specifically:
Review and assess the ICAAP (Internal Capital Adequacy Process).
Review and evaluate the ILAAP (Internal Liquidity Adequacy Process).
Carry out Business Model Analysis (BMA).
Analyse the bank’s risk individually and in the aggregate, including under stressed conditions, and its contribution to systemic risk.
Evaluate the corporate governance system, the organisational structure and the system of internal controls.
Monitor compliance with all prudential rules.
Make an overall assessment of the bank and initiate corrective action where appropriate.
At the end of the process, the supervisory Authorities send the banks a letter (called a “SREP decision”) specifying the objectives and areas to be addressed and corrected within a defined time frame16.
\nThe SREP is an articulated process that develops through a continuous dialogue and confrontation between supervisor and supervised in order to make an overall assessment, from an integrated perspective, of the stability and resilience of the latter. The inspectors’ findings and the on- and off-site supervision feed the subsequent SREP cycle. In this perspective, the SREP is not a control and assessment activity carried out by the Supervisor once a year, but rather a process of second-pillar prudential control, which unfolds continuously and starts from the identification of the category17 to which the bank belongs (with respect to which to calibrate the intensity of the supervisory activity) against which the intensity of the SREP assessment is established, the supervisory expectations and the information required during the data collection phase, calibrated according to the classes [7] to finally arrive at the so-called SREP decision. The classification is calibrated according to the systemic impact of the intermediary, based on: size, structure, internal organisation, type, purpose and complexity.
\nThe classification of institutions is followed by monitoring of indicators for changes in financial conditions and risk with the objective of updating the assessment of SREP elements. If monitoring reveals a deterioration in the institution’s risk, the Supervisor investigates the causes and may revise the assessments of the SREP elements. Vigilance develops different sets of ratios based on the different specificities of banks, including: ratios for all risks subject to SREP. All ratios used for regulatory requirements (see EU Regulation 575/2013 and Directive 2013/36/EU), minimum requirements on own funds and eligible liabilities under Directive 2014/59/EU (bank recovery), market indicators (equity price, CDS spread, etc.), recovery indicators. The frequency of assessment of all items of the SREP process is calibrated according to the category that the financial intermediary belongs to.
\nThe four central blocks covered by the SREP assessment are: business model analysis, the governance and risk management framework, the capital adequacy framework (ICAAP) and the liquidity management framework (ILAAP).
\nFor each of the four main blocks covered by the SREP, banks are assessed by the Supervisory Authorities on a scale of 1 to 4.18 The outcome of the assessment constitutes the basis for the overall assessment of the SREP: the SREP decision, which is the basis for supervisory measures. The SREP decision is the final summary of the entire Pillar 2 supervisory review process, which reports the bank’s overall score (compared to the assessment of the four main blocks) and, if anomalies are found, any corrective measures of an organisational, capital or liquidity risk containment nature or
Early intervention measures may be triggered by events that could have a significant prudential impact19 on the institution’s financial condition. They should be considered if the institution’s overall or individual SREP score is 4 and even if the SREP score inclusive was 3, but individual elements for governance and internal control, business model strategy, capital adequacy or liquidity score were instead 4. However, the early intervention measures are the result of ongoing monitoring of compliance with the requirements of the CRR and CRDIV with respect to the anomalous situations foreseen by the BRRD in the supervisory activity.
\nIn the SREP decision the Authorities also define the so-called Pillar 2 Requirement (P2R), which
By its very nature, the entire process of Pillar 2 prudential supervision gives shape and content to the fundamental moments of intermediaries’ strategic planning, business choices, capital and liquidity allocation, funding plan, governance and organisational structure. The SREP is certainly a holistic approach to supervision that calls for an equally integrated approach by individual intermediaries to business choices, risk, capital and liquidity management both in normal and stressed conditions (Crisis and Recovery Risk Management), governance and the overall Risk Management framework. In this perspective, the SREP certainly represents a regulatory “stimulus” to a significant qualitative leap in the functions that deal with risks, capital and liquidity in the bank, recognising them as having a primary role in the strategic planning of the bank, as well as a flexible and proactive integration of the corporate control functions (\nTable 4\n).
\n\n | \nDegree of feasibility (within the year) and sustainability (over a three-year horizon) of the business model declared by the bank. Identification of the key elements of the Business Model and assessment of the main areas of vulnerability. | \n
\n | \nAdequacy of the governance model including the main control functions (risk management, internal audit and compliance). Adequacy of the Risk Management system/infrastructure and degree of establishment of a “risk culture”. | \n
\n | \nAdequacy of capital to cover specific risk categories (e.g. credit, market, operational and interest rate risk in the banking book). Overall assessment of ICAAP (documentation, data quality, risk measurement processes, capital planning, ...). | \n
\n | \nAdequacy of overall liquidity management processes/governance; Funding capacity. | \n
SREP process::Building blocks.
Within the SREP process, one of the main moments of assessment is represented by the analysis of the business model of financial intermediaries and the related operational and strategic risks (Business Model Analysis) aimed at establishing the economic (viability) and strategic sustainability of the business model20 of the institution based on its ability to generate acceptable profits over the next 12 months and over a three-year horizon. With the BMA, legislators attempt to investigate in detail the profitability of the current and prospective business model, but also to assess its resilience and weaknesses, which could jeopardise the future survival of the bank and which may not be highlighted by other elements of the SREP. The business model is not to be confused with the concept of “intermediation model”. On closer inspection, the former refers to a broader concept that encompasses both the issue of the intermediation model and other aspects such as the use of technology, the creation of value for the set of stakeholders and the management and operation of the most relevant processes (Maurizio [8]). The business model describes the logic with which an organisation creates, distributes and captures value [9]. However, there is no unambiguous definition of the business model in the literature, nor have European legislators ventured to define it in relation to the financial intermediation sector (Di [10]).
\nFrom this perspective, it is clear that the introduction of the BMA within the SREP process is a clear sign of the importance that European lawmakers assign to strategic planning and therefore to the choice of the intermediary’s business model, which, as is well known, has a large impact on the levels of profit produced. The latter is an issue of strategic importance given the negative trend in profitability in the context of the low profitability of Italian and European banks caused by the international financial crisis and the strong tightening of prudential supervisory obligations on risk, capital and liquidity, which require a thorough review of the intermediary’s strategic choices along possible lines of development of intermediation margins (Artificial Intelligence, attention to sustainable or rather ESG-oriented finance, etc.). The possibility for a bank to exploit resources with a high technological content, albeit following significant initial investments, allows it to achieve cost-reduction objectives, especially with regard to traditional credit activities, but in general for all activities whose costs (e.g. personnel costs) are not adequately remunerated by the revenues generated [11].
\nWhile it is true that business model choices have an impact on the profitability of individual banks, they also have important implications for the stability of the entire financial system (through funding structure,21 revenue composition, cost composition, ownership structure), which is why the BMA has been given an important role in the overall Pillar 2 prudential control process.
\nThe BMA starts with a preliminary assessment of the environment the bank operates in, with particular reference to its core activities. In this initial step, the supervisor is required to assess a number of parameters (total revenues/costs, market position, etc.) and monitor their evolution over time in order to have a clear picture of the condition of the institution and to establish the relevance of its business areas in the context of reference. Competent authorities should use this preliminary assessment to establish the materiality of business lines/areas (i.e. determine which geographic areas, subsidiaries/branches, business lines and product lines are the most relevant based on profit contribution, risk and/or organisational/regulatory priorities -specific requirements for public sector banks to offer certain products- identify the peer group based on competing product/business lines that target the same source of profits/customers, support the application of the proportionality principle.
\nAfter the preliminary macroeconomic assessment, the competent authority should focus on the current business model, on the business lines that are most important in terms of viability or future sustainability of the current business model and/or that are most likely to increase the institution’s exposure to existing or new vulnerabilities, whereby they should assess the relevance of the business lines, previous SREP findings, findings and observations of internal and external audit reports, the importance of strategic plans identifying any business lines to be substantially increased or decreased, results of topical supervisory reviews, observed changes in the business model and peer comparisons (i.e. whether a business line has performed atypically compared to peers). As outlined in the EBA guidelines on the SREP process, the areas for which authorities are tasked with conducting analysis should include, at a minimum, an assessment of the trend in profits and losses in recent years, looking at the most significant indicators of banking activity such as net interest income, net banking income, cost-to-income ratio and loan impairment rate; the composition of the balance sheet in recent years, with particular attention to the composition of liabilities; the concentration of assets by customer, sector or geographic area; an assessment of the intermediary’s risk appetite, taking into account the formal definition of the current limits and the real tendency to respect them in practice; and finally an assessment that takes into account both internal and external factors capable of impacting on the functioning of the business model.
\nIt should be made clear that the BMA has as its ultimate goal:
The feasibility/viability of the current business model over a 12-month horizon.
The sustainability of strategic plans over a three-year horizon.
In other words, the supervisors’ “ultimate” objective is to assess whether the financial intermediary, with its business model and strategy, is credibly capable of generating acceptable returns over a short (12-month) and long-term (three-year) time horizon.
\nThe BMA does not aim to give a rating to the possible business models since the choice of these remains the responsibility of the management body, but to assess viability and sustainability, therefore verifying the bank’s ability to generate “acceptable returns” in the time horizons considered (12 months and 36 months). With regard to viability, having carried out the preliminary analysis, the Supervisor considers:
\n
\n
\n
After the preliminary assessment, that of the entrepreneurial context, the detailed analysis of the current business model for the purposes of assessing the viability thereof, the Authority must
The
The impact of supervisors’ estimates on the business environment (if different from that assumed by the bank).
The level of
The most obvious problem that arises in the assessment phase of the financial intermediary’s business model concerns the existence of documents capable of providing comprehensive information to the supervisory authority on the subject in question. Indeed, in many cases it is difficult to find the documentation relating to the detailed description of the business model adopted or, again, a definition of the responsibilities of the corporate functions involved in the implementation of the activities aimed at complying with the regulatory obligations on the subject. After the process described above and at the end of the BMA process, the authority will have the task of formulating an overall opinion on the business model adopted by the intermediary, highlighting any critical points identified.
\nThe second assessment of the SREP process is devoted to the following areas: Internal governance framework; Risk management framework and risk culture; Risk infrastructure and data and reporting.
\nAt this stage of the assessment, the main objective of the supervisory authority is to evaluate whether the bank’s governance system and risk management process are adequate and consistent with the adopted business model and with what is planned in the risk appetite framework. More specifically, the suitability of the governance is assessed and whether the governance is adequately informed about the risks assumed by the bank, the risk management policies, the impact of the risk management policies on the banking activity as well as the level of capitalisation and whether this level is in balance with the risks assumed. It also assesses whether the bank has remuneration policies that comply with applicable regulations and whether the bank has an adequate system of internal controls (focusing on the risk management and compliance function), and in particular whether: (a) risk management policies have been properly defined and documented; (b) whether operational limits to the risk that can be taken are properly defined for the various business units and the bank’s risk appetite; (c) whether these limits are complied with; (d) whether the risk management function is able to measure, control and manage the risks the bank is exposed to; and (e) whether the bank in its operations complies with the rules affecting its business and internal regulations. Finally, in order for the analysis to be complete, the authority examines the technological infrastructure supporting the risk management process, as well as the quality of the data and the data collection mechanism. In fact, it is easy to see how scarce or irrelevant information can compromise the proper operation of the banking business, especially in terms of risk management and control. In summary, the areas impacted by this analysis are:
Overall internal governance framework.
Corporate and risk culture.
Organisation and operation of the management body.
Remuneration policies and practices.
Risk management framework, including ICAAP and ILAAP.
Internal control framework, including the internal audit function.
Information systems and business continuity.
Recovery planning arrangements.
Particular attention is paid to the assessment of the Risk management framework and the diffusion of an adequate risk culture at all organisational levels of the bank. The attention paid by supervisors to the three corporate control functions and in particular to the Risk Management function highlights the strategic role assumed by this function in recent years: there is no possibility of planning the opening of new branches, offering new products, changing the funding plan without taking into account the impact of these choices on the governance of risks, capital and liquidity. Given the strategic role that this function plays in the overall governance of the bank, it is clear that it must be staffed with adequate professionalism to oversee the various tasks and responsibilities that regulation has greatly articulated in recent years. In carrying out its activities, the Risk Management then has the moral obligation to spread the culture of risk at every organisational level; it is the culture of risk that is the real engine of change to guide the bank in the current hyper-regulated, volatile and complex market context. As pointed out by FSB [12]22 “
An appropriate risk–return combination, consistent with the financial institution’s risk appetite.
An effective system of controls, commensurate with the size and complexity of the financial institution.
The quality of risk models, the accuracy of data, the ability to measure risks accurately, using appropriate tools.
Limit possible violations of the policies followed.
A sound and widespread risk culture is the
For this reason, the culture of risk, being the humus of the sound and prudent management of a bank, cannot remain the exclusive property of the relative Risk Management function, but must become part of the common language and cultural baggage of the other actors involved in the governance of the company at any organisational level. In this perspective, it seems useful to clarify the skills and professionalism required by the corporate control functions, and therefore also by the Risk Management.
\nOn 26 September 2017, EBA and ESMA [13] issued guidelines pursuant to article 9(1) of Directive 2014/65/EU (MiFID II) and article 91(12) of Directive 2013/36/EU (CRD IV). The Guidelines explicitly identify
In compliance with the guidelines, banking and financial institutions must ensure and assess that KFH have an appropriate level of reputation, honesty, integrity, knowledge, skills and experience:
When applying for the authorisation;
When appointing a new KFH (within one month of appointment);
When necessary to ensure “ongoing” monitoring, in particular when “events” occur that make it appropriate to reassess the fitness of KFH (changes in the organisational structure, occurrence of episodes with reputational impact, changes in the business model).
In this regard, banks and financial institutions should establish their own fitness policy, including an appropriate induction plan (for new appointments) and ongoing training to ensure that they are familiar with the required areas and have the necessary skills. The Guidelines outline a perimeter of competencies for the fitness assessment of KFHs that includes not only their previous experience but also technical competencies23 (banking and financial markets, legal requirements, regulatory framework, strategic planning, etc.) and a very articulated set of soft skills including: independence of mind, decision-making ability, authenticity (consistency with stated values), communication and judgement skills (examines, recognises and understands the essential elements of issues with respect to which he/she is able to weigh different courses of action and project himself/herself beyond his/her area of responsibility), customer and quality orientation (of products, services, relationships), leadership, loyalty (identifies with the company, its value system defends the interests of the company and operates objectively and critically with a sense of involvement), stress resistance, negotiation skills, awareness of the external context (he/she is well informed about financial, economic, social and other relevant developments at a national and international level that may affect the company), ability to work in a team, persuasiveness, strategic acumen (he/she is able to develop a realistic vision of future developments by translating it into long-term objectives, e.g. by applying scenario analysis), ability to chair meetings efficiently and effectively creating an open atmosphere that encourages everyone to participate.
\nIndependence of mind should not be confused with the independence required of members of the management body. In the latter case, reference is made to the fact that a member of the body in question must not have had any present or recent relationship or connection of any kind with the intermediary that could influence the latter’s ability to take balanced and independent decisions in the performance of his/her functions. For example, the fact that a member of the board of directors is considered to be “independent” does not mean that the member simultaneously has independence of mind [14]. The latter is in fact a set of necessary behavioural skills, including courage, conviction and strength to effectively evaluate and challenge the proposed decisions of other board members, the ability to ask questions of board members and to resist group-think.
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Many parasitic diseases are classified as neglected tropical diseases because they have received minimal funding over recent years and, in many cases, are under-reported despite the critical role they play in morbidity and mortality among human and animal hosts. The current topic, Parasitic Infectious Diseases, in the Infectious Diseases Series aims to publish studies on the systematics, epidemiology, molecular biology, genomics, pathogenesis, genetics, and clinical significance of parasitic diseases from blood borne to intestinal parasites as well as zoonotic parasites. We hope to cover all aspects of parasitic diseases to provide current and relevant research data on these very important diseases. In the current atmosphere of the Coronavirus pandemic, communities around the world, particularly those in different underdeveloped areas, are faced with the growing challenges of the high burden of parasitic diseases. At the same time, they are faced with the Covid-19 pandemic leading to what some authors have called potential syndemics that might worsen the outcome of such infections. Therefore, it is important to conduct studies that examine parasitic infections in the context of the coronavirus pandemic for the benefit of all communities to help foster more informed decisions for the betterment of human and animal health.",coverUrl:"https://cdn.intechopen.com/series_topics/covers/5.jpg",keywords:"Blood Borne Parasites, Intestinal Parasites, Protozoa, Helminths, Arthropods, Water Born Parasites, Epidemiology, Molecular Biology, Systematics, Genomics, Proteomics, Ecology"},{id:"6",title:"Viral Infectious Diseases",scope:"The Viral Infectious Diseases Book Series aims to provide a comprehensive overview of recent research trends and discoveries in various viral infectious diseases emerging around the globe. The emergence of any viral disease is hard to anticipate, which often contributes to death. A viral disease can be defined as an infectious disease that has recently appeared within a population or exists in nature with the rapid expansion of incident or geographic range. This series will focus on various crucial factors related to emerging viral infectious diseases, including epidemiology, pathogenesis, host immune response, clinical manifestations, diagnosis, treatment, and clinical recommendations for managing viral infectious diseases, highlighting the recent issues with future directions for effective therapeutic strategies.",coverUrl:"https://cdn.intechopen.com/series_topics/covers/6.jpg",keywords:"Novel Viruses, Virus Transmission, Virus Evolution, Molecular Virology, Control and Prevention, Virus-host Interaction"}],annualVolumeBook:{},thematicCollection:[],selectedSeries:{title:"Infectious Diseases",id:"6"},selectedSubseries:null},seriesLanding:{item:{id:"7",title:"Biomedical Engineering",doi:"10.5772/intechopen.71985",issn:"2631-5343",scope:"Biomedical Engineering is one of the fastest-growing interdisciplinary branches of science and industry. The combination of electronics and computer science with biology and medicine has improved patient diagnosis, reduced rehabilitation time, and helped to facilitate a better quality of life. Nowadays, all medical imaging devices, medical instruments, or new laboratory techniques result from the cooperation of specialists in various fields. The series of Biomedical Engineering books covers such areas of knowledge as chemistry, physics, electronics, medicine, and biology. 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Dr. Koprowski has authored more than a hundred research papers with dozens in impact factor (IF) journals and has authored or co-authored six books. Additionally, he is the author of several national and international patents in the field of biomedical devices and imaging. Since 2011, he has been a reviewer of grants and projects (including EU projects) in biomedical engineering.",institutionString:null,institution:{name:"University of Silesia",institutionURL:null,country:{name:"Poland"}}},subseries:[{id:"7",title:"Bioinformatics and Medical Informatics",keywords:"Biomedical Data, Drug Discovery, Clinical Diagnostics, Decoding Human Genome, AI in Personalized Medicine, Disease-prevention Strategies, Big Data Analysis in Medicine",scope:"Bioinformatics aims to help understand the functioning of the mechanisms of living organisms through the construction and use of quantitative tools. The applications of this research cover many related fields, such as biotechnology and medicine, where, for example, Bioinformatics contributes to faster drug design, DNA analysis in forensics, and DNA sequence analysis in the field of personalized medicine. Personalized medicine is a type of medical care in which treatment is customized individually for each patient. Personalized medicine enables more effective therapy, reduces the costs of therapy and clinical trials, and also minimizes the risk of side effects. Nevertheless, advances in personalized medicine would not have been possible without bioinformatics, which can analyze the human genome and other vast amounts of biomedical data, especially in genetics. The rapid growth of information technology enabled the development of new tools to decode human genomes, large-scale studies of genetic variations and medical informatics. The considerable development of technology, including the computing power of computers, is also conducive to the development of bioinformatics, including personalized medicine. In an era of rapidly growing data volumes and ever lower costs of generating, storing and computing data, personalized medicine holds great promises. Modern computational methods used as bioinformatics tools can integrate multi-scale, multi-modal and longitudinal patient data to create even more effective and safer therapy and disease prevention methods. Main aspects of the topic are: Applying bioinformatics in drug discovery and development; Bioinformatics in clinical diagnostics (genetic variants that act as markers for a condition or a disease); Blockchain and Artificial Intelligence/Machine Learning in personalized medicine; Customize disease-prevention strategies in personalized medicine; Big data analysis in personalized medicine; Translating stratification algorithms into clinical practice of personalized medicine.",annualVolume:11403,isOpenForSubmission:!0,coverUrl:"https://cdn.intechopen.com/series_topics/covers/7.jpg",editor:{id:"351533",title:"Dr.",name:"Slawomir",middleName:null,surname:"Wilczynski",fullName:"Slawomir Wilczynski",profilePictureURL:"https://s3.us-east-1.amazonaws.com/intech-files/0033Y000035U1loQAC/Profile_Picture_1630074514792",institutionString:null,institution:{name:"Medical University of Silesia",institutionURL:null,country:{name:"Poland"}}},editorTwo:null,editorThree:null,editorialBoard:[{id:"5886",title:"Dr.",name:"Alexandros",middleName:"T.",surname:"Tzallas",fullName:"Alexandros Tzallas",profilePictureURL:"https://mts.intechopen.com/storage/users/5886/images/system/5886.png",institutionString:"University of Ioannina, Greece & Imperial College London",institution:{name:"University of Ioannina",institutionURL:null,country:{name:"Greece"}}},{id:"257388",title:"Distinguished Prof.",name:"Lulu",middleName:null,surname:"Wang",fullName:"Lulu Wang",profilePictureURL:"https://s3.us-east-1.amazonaws.com/intech-files/0030O00002bRX6kQAG/Profile_Picture_1630329584194",institutionString:null,institution:{name:"Shenzhen Technology University",institutionURL:null,country:{name:"China"}}},{id:"225387",title:"Prof.",name:"Reda",middleName:"R.",surname:"Gharieb",fullName:"Reda Gharieb",profilePictureURL:"https://mts.intechopen.com/storage/users/225387/images/system/225387.jpg",institutionString:"Assiut University",institution:{name:"Assiut University",institutionURL:null,country:{name:"Egypt"}}}]},{id:"8",title:"Bioinspired Technology and Biomechanics",keywords:"Bioinspired Systems, Biomechanics, Assistive Technology, Rehabilitation",scope:'Bioinspired technologies take advantage of understanding the actual biological system to provide solutions to problems in several areas. Recently, bioinspired systems have been successfully employing biomechanics to develop and improve assistive technology and rehabilitation devices. The research topic "Bioinspired Technology and Biomechanics" welcomes studies reporting recent advances in bioinspired technologies that contribute to individuals\' health, inclusion, and rehabilitation. 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We encourage the submission of manuscripts that provide novel and mechanistic insights that report significant advances in the fields. Topics can include but are not limited to: Biotechnology such as biotechnological products and process engineering; Biotechnologically relevant enzymes and proteins; Bioenergy and biofuels; Applied genetics and molecular biotechnology; Genomics, transcriptomics, proteomics; Applied microbial and cell physiology; Environmental biotechnology; Methods and protocols. Moreover, topics in biosensor technology, like sensors that incorporate enzymes, antibodies, nucleic acids, whole cells, tissues and organelles, and other biological or biologically inspired components will be considered, and topics exploring transducers, including those based on electrochemical and optical piezoelectric, thermal, magnetic, and micromechanical elements. Chapters exploring biomaterial approaches such as polymer synthesis and characterization, drug and gene vector design, biocompatibility, immunology and toxicology, and self-assembly at the nanoscale, are welcome. Finally, the tissue engineering subcategory will support topics such as the fundamentals of stem cells and progenitor cells and their proliferation, differentiation, bioreactors for three-dimensional culture and studies of phenotypic changes, stem and progenitor cells, both short and long term, ex vivo and in vivo implantation both in preclinical models and also in clinical trials.",annualVolume:11405,isOpenForSubmission:!0,coverUrl:"https://cdn.intechopen.com/series_topics/covers/9.jpg",editor:{id:"126286",title:"Dr.",name:"Luis",middleName:"Jesús",surname:"Villarreal-Gómez",fullName:"Luis Villarreal-Gómez",profilePictureURL:"https://mts.intechopen.com/storage/users/126286/images/system/126286.jpg",institutionString:null,institution:{name:"Autonomous University of Baja California",institutionURL:null,country:{name:"Mexico"}}},editorTwo:null,editorThree:null,editorialBoard:[{id:"35539",title:"Dr.",name:"Cecilia",middleName:null,surname:"Cristea",fullName:"Cecilia Cristea",profilePictureURL:"https://s3.us-east-1.amazonaws.com/intech-files/0030O00002aYQ65QAG/Profile_Picture_1621007741527",institutionString:null,institution:{name:"Iuliu Hațieganu University of Medicine and Pharmacy",institutionURL:null,country:{name:"Romania"}}},{id:"40735",title:"Dr.",name:"Gil",middleName:"Alberto Batista",surname:"Gonçalves",fullName:"Gil Gonçalves",profilePictureURL:"https://s3.us-east-1.amazonaws.com/intech-files/0030O00002aYRLGQA4/Profile_Picture_1628492612759",institutionString:null,institution:{name:"University of Aveiro",institutionURL:null,country:{name:"Portugal"}}},{id:"211725",title:"Associate Prof.",name:"Johann F.",middleName:null,surname:"Osma",fullName:"Johann F. 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