Sunday, December 5, 2010
Monday, November 15, 2010
Friday, August 27, 2010
Multimedia & Web Technology Notes
Notes for Multimedia & Web Technology for Notes of Chapter-12(XML) for the preparations of Half Yearly Examinations'2010.
Tuesday, July 27, 2010
Friday, July 9, 2010
Thursday, July 8, 2010
Open Source Banking for Financial Stability
The nature of money and banking industry has evolved tremendously over the course of last century. Software has become a high, if not the highest, cause of financial instability. Open Source Banking software could be used to provide better regulation of banking activities through accurate monitoring. The role of information systems in Banking has become so important that a bank should be considered as the operator of complex software systemsand information services rather than the operator of vaults, buildingsand branches. Consider for example the currency issuing process in a Central Bank.
The only difference between a bank note which has not yet been issued and a bank note which has been issued is a decision to log in acomputer database.
The predominance of information systems in the modern financial systemis clearly revealed by the Kerviel case which involved SG French Bank in2007. Kerviel, a young trader, found a way to enter data in theinformation system in such way that he could circumvent risk exposure procedures built in the banking software. At the same time, riskexposure information, which was available in another softwaresubsystem of the bank, and which certain SG staff was aware of, yetclosing their eyes on, was not exposed to the higher management or toregulation authorities.
The loss of 4.82 billion Euros in January 2008 was therefore a bigsurprise for both higher management of SG and for regulation authorities,who until then considered SG as one of the best managed bank worldwide.
Similar losses and incidents, which put the financial system at risk by reducing investor confidence, are likely to occur again until one of the major causes of this instability is addressed : software obscurity. Much information that should give a fair overview of the current assets and liabilities of a bank are actually stored outside the main accounting software of the bank.
The software systems which are running besides accounting are not subject to any kind of regulatory control and,therefore, may be used to circumvent regulations either through functional inconsistencies or through temporal inconsistencies.
Functional inconsistencies consists of misleading the accounting software through inaccurate representation of the bank status. Temporal inconsistencies consists of misleading the accounting software by postponing or hiding certain events.
Software obscurity in the banking system can be resolved by introducing open source banking applications as a way to model and monitor the banking activity. Obviously, we are not intending to replace existing banking software which banks invested in for decades.
However, we are suggesting to introduce a reference software in the banking sector, published as open source, which defines the way a typical bank should be managed. The 'open sourceness' of this reference software is a guarantee that any citizen or authority can peer review the rules which are meant to be implemented by banks.
Moreover, by synchronizing the data handled by existing software with this reference software, banks could provide to regulation authorities a very accurate picture of their activity, much more precise than what accounting can provide.
One Central Bank has already started to follow this path by implementing ERP5 Banking (www.erp5.com) in 8 countries.
By creating an environment in which banks can not hide data and where the public can review the rules which are meant to be enforced by regulation authorities, open source banking could help restore confidence in global financial system.
The only difference between a bank note which has not yet been issued and a bank note which has been issued is a decision to log in acomputer database.
The predominance of information systems in the modern financial systemis clearly revealed by the Kerviel case which involved SG French Bank in2007. Kerviel, a young trader, found a way to enter data in theinformation system in such way that he could circumvent risk exposure procedures built in the banking software. At the same time, riskexposure information, which was available in another softwaresubsystem of the bank, and which certain SG staff was aware of, yetclosing their eyes on, was not exposed to the higher management or toregulation authorities.
The loss of 4.82 billion Euros in January 2008 was therefore a bigsurprise for both higher management of SG and for regulation authorities,who until then considered SG as one of the best managed bank worldwide.
Similar losses and incidents, which put the financial system at risk by reducing investor confidence, are likely to occur again until one of the major causes of this instability is addressed : software obscurity. Much information that should give a fair overview of the current assets and liabilities of a bank are actually stored outside the main accounting software of the bank.
The software systems which are running besides accounting are not subject to any kind of regulatory control and,therefore, may be used to circumvent regulations either through functional inconsistencies or through temporal inconsistencies.
Functional inconsistencies consists of misleading the accounting software through inaccurate representation of the bank status. Temporal inconsistencies consists of misleading the accounting software by postponing or hiding certain events.
Software obscurity in the banking system can be resolved by introducing open source banking applications as a way to model and monitor the banking activity. Obviously, we are not intending to replace existing banking software which banks invested in for decades.
However, we are suggesting to introduce a reference software in the banking sector, published as open source, which defines the way a typical bank should be managed. The 'open sourceness' of this reference software is a guarantee that any citizen or authority can peer review the rules which are meant to be implemented by banks.
Moreover, by synchronizing the data handled by existing software with this reference software, banks could provide to regulation authorities a very accurate picture of their activity, much more precise than what accounting can provide.
One Central Bank has already started to follow this path by implementing ERP5 Banking (www.erp5.com) in 8 countries.
By creating an environment in which banks can not hide data and where the public can review the rules which are meant to be enforced by regulation authorities, open source banking could help restore confidence in global financial system.
Saturday, May 29, 2010
Class XI _Presentations for Home Assignment
Pick up any of the following topics
1. Internet Safety
2. Growing with Technology
3. Spyware and Adware
4. Computer Architecture
5. Bluetooth technology
6. Loopholes in windows
1. Internet Safety
2. Growing with Technology
3. Spyware and Adware
4. Computer Architecture
5. Bluetooth technology
6. Loopholes in windows
Wednesday, May 5, 2010
Saturday, April 24, 2010
Thursday, April 8, 2010
Friday, April 2, 2010
Tuesday, March 9, 2010
Thursday, February 25, 2010
Tuesday, February 23, 2010
Thursday, February 18, 2010
Wednesday, February 17, 2010
Saturday, February 6, 2010
Friday, February 5, 2010
Thursday, January 21, 2010
Sunday, January 17, 2010
Saturday, January 16, 2010
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