According to the last proposals by the Basel Committee, banks are allowed to use statistical approaches for the computation of their capital charge covering financial risks such as credit risk, market risk and operational risk. It is widely recognized that internal loss data alone do not suffice...

A major recent development in statistics has been the use of fast computational methods of Markov chain Monte Carlo. These procedures allow Bayesian methods to be used in quite complex modelling situations. In this paper, we shall use a range of real data examples involving lapwings, shags,...