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Reproduction permitted only if source is stated. ISBN Non-technical summary Research QuestionNet interest income is the main source of income for banks. As a result of carrying out maturity transformation, banks' net interest income is affected in the short run by the dynamics in the term structure. Therefore, as a rule, an increase in interest rates leads to a decline in net interest income in the following years. However, little is known about the medium and long-term effects of changes in the interest rate level. Anecdotal evidence suggests that net interest income benefits in the medium and long term if interest rates increase. This paper also investigates the effects of the low interest rate environment on the margin for customer deposits. ContributionThe short-run effect of a change in the interest rate level is widely discussed and empirically investigated in the literature. The medium and long-term effects are harder to detect, however, because short-term developments mask this effect and the applied datasets often cover a period of only up to 20 years. In this paper, the authors use a dataset that covers more than 40 years and a model which nevertheless allows them to differentiate between the short-and long-run effects of a rise in the interest rate level. ResultsThe paper shows that banks' net interest income benefits over the medium to long-term horizon if the interest rate level increases. An increase of 100 basis points in the interest rate level leads to an increase in the net interest margin of about 7 basis points. It is therefore possible to demonstrate empirically that the short-term effect and medium to long-term effects on banks' net interest margin are diametrically opposed. Furthermore, the authors find that the margins for retail deposits have declined by up to 97 basis points owing to the low interest rate environment. Nichttechnische Zusammenfassung FragestellungDas Zinsergebnis ist die wichtigste Einnahmequelle der Banken. Dadurch, dass Banken Fristentransformation betreiben, ist das Zinsergebnis in der kurzen Frist von der Dynamik der Zinsstruktur betroffen. Ein Ansteigen der Zinsen führt dadurch in der Regel zu abnehmenden Zinsergebnissen in den Folgejahren. Über die mittel-und langfristige Wirkung von Änderungen des Zinsniveaus ist dagegen wenig bekannt. Anekdotische Evidenz legt nahe, dass das Zinsergebnis mittel-und langfristig profitiert, wenn das Zinsniveau ansteigt. Auch wird in dem Papier die Wirkung untersucht, die das gegenwärtige Niedrigzinsumfeld auf die Margen der Kundeneinlagen hat. BeitragDer kurzfristige Effekt einer Veränderung der Zinsstrukturkurve wird in der Literatur ausgiebig diskutiert und empirisch untersucht. Mittel-und langfristige Entwicklungen dagegen sind schwerer nachzuweisen, weil kurzfristige Entwicklungen den Effekt überlagern und die verwendeten Zeitreihen in der Regel nur bis zu 20 Jahre betragen. In diesem Papier verwenden die Autoren einen Datensatz, der mehr als 40 Jahre umfasst, und ein entsprechend spezifiziertes Modell, das es ihnen erlaubt, ...

In any given organism, about 1/3 of all proteins have a yet unknown function. A widely distributed domain of unknown function is DUF1127. About 17,000 proteins with such an arginine-rich domain are found in 4,000 bacteria. Most of them are single domain proteins, and a large fraction qualifies as small proteins with less than 50 amino acids. We systematically identified and characterized the seven DUF1127 members of the plant pathogen Agrobacterium tumefaciens. They all give rise to authentic proteins and are differentially expressed as shown at the RNA and protein levels. The seven proteins fall into two sub-classes on the basis of their length, sequence and reciprocal regulation by the LysR-type transcription factor LsrB. The absence of all three short DUF1127 proteins caused a striking phenotype in later growth phases, and increased cell aggregation and biofilm formation. Protein profiling and RNA-seq analysis of the wild type and triple mutant revealed a large number of differentially regulated genes in late exponential and stationary growth. The most affected genes are involved in phosphate uptake, glycine/serine homeostasis and nitrate respiration. The results suggest a redundant function of the small DUF1127 paralogs in nutrient acquisition and central carbon metabolism of A. tumefaciens. They may be required for diauxic switching between carbon sources when sugar from the medium is depleted. We end by discussing how DUF1127 might confer such a global impact on cell physiology and gene expression. Importance Despite being prevalent in numerous ecologically and clinically relevant bacterial species, the biological role of proteins with a domain of unknown function DUF1127 is unclear. Experimental models are needed to approach their elusive function. We used the phytopathogen Agrobacterium tumefaciens, a natural genetic engineer that causes the crown-gall disease, and focused on its three small DUF1127 proteins. They have a redundant and pervasive role in nutrient acquisition, cellular metabolism and biofilm formation. The study shows that small proteins have important, previously missed biological functions. How small basic proteins can have such a broad impact is a fascinating prospect of future research.

The net interest income is for the majority of banks in Germany the by far most important source of income. In this paper, we investigate how the bearing of credit risk, term transformation and the liquidity and payment management for its customers contribute to the net interest income. ContributionThe above mentioned functions and their potential impact on a bank's net interest income are well documented in the empirical literature. However, little is known about the concrete value of the different contributions to the net interest income. In this study for the year 2012, we carry out a quantification of the different components of the net interest income of the banks in Germany. The idea is to estimate the costs (including opportunity costs) of performing the above mentioned functions. We assume that in the long run earnings equal costs and we apply these costs as the contributions to a bank's net interest income. ResultsFor the median bank nearly half of the net interest income (47%) is due to the payment and liquidity management for the customers. More than one third (35%) of the net interest income stems from term transformation and 16% of the net interest income results from bearing credit risk. Other contributions to the net interest income can be due to a difference in the volumes of interest bearing assets and liabilities and due to a bank's strong market position. Nicht-technische Zusammenfassung AbstractUsing unique data sets on German banks, we decompose their net interest margin and quantify the different components by estimating the costs of the various functions they perform. We investigate three major functions: namely, liquidity and payment management for the customers, the bearing of credit risk, and term transformation. For the year 2012, the costs of liquidity and payment management correspond, in the median, to 47%, the bearing of credit risk to 16%, and earnings from term transformation to 35% of the net interest margin, respectively. However, looking at the period 2005-2012, earnings from term transformation seem to account for a much smaller share (about 20%) of the median bank's net interest margin.