Zoe Sharp Tell Me

Zoe Sharp †Tell me (Part An) It is clear that Grace has numerous years experience, and comprehends what she is doing. Beauty is attempting to discover what has befallen the young lady, by talking her about the mishap, and her life. She delves in to her past by, conversing with her despite the fact that she’s dead, and perusing her hands. Close to that she is utilizing the experience that her activity, as a wrongdoing specialist has given her. She read the young lady very good.It is likely in light of the fact that Grace had a youth like the person in question, without a current dad figure, who thought about her life and prosperity. She find numerous significant pieces of information, what's more, she is understanding and is a great idea to pose applicable inquiries and is by all accounts obstinate and not surrender she will have comprehended the case. (Part B) Grace resembles different criminologists, for instance Sherlock Holmes and overseer Barnaby. Quiet and tranquil i n their examination, they don’t worry around, however takes things end as they seem to be, and researching them.However on the off chance that you take a gander at Sherlock Holmes and Barnaby, they have somewhat more pieces of information to support them. Grace’s examination is progressively similar to, She is living more into the young lady's part to discover what occurred, so she doesn’t know without a doubt, what really occurred, on the grounds that the young lady she converses with really is dead (Part c) I think a few ladies remain with their savage spouse, since they might be reluctant to state or conflict with their significant other, and afterward wind up getting much more beatings, perhaps accordingly stay lady with their husband.Otherwise I figure it could be on the grounds that the lady doesn’t have anyplace else to go, or probably won't have enough cash to accommodate them, since it is their better half who gives them, possibly he has a great job and procure numerous funds, and have a high status, besides the lady would not lose or miss the social pride. They will obviously lose the societal position they have, when they are not together, so I short it possibly could be the motivation behind why ladies proceed with remain with their brutal spouse.

The Wieght Of Puishment Essays - Penology, Criminology,

The Wieght Of Puishment THE WEIGHT OF PUNISHMENT The death penalty, known as capital punishment isn't rehearsed in all states. So as to get or meet all requirements for capital punishment you would need to submit murder, which is removing an honest individual life from our general public. To submit a disagreeable demonstration like that an individual must be sick and improper. At the point when I see individuals holding up signs, walking or giving addresses on how we need to relinquished capital punishment I become ill to my stomach. Any individual that was eager to remove a blameless people life ought to be happy to satisfy the discipline. In the event that we manage without capital punishment that won't give any reality to the demonstration of homicide. I completely concur with the death penalty. For the utilitarian, discipline is possibly viewed to as though there is joy made and misery not made. From the utilitarian perspective the death penalty is acceptable on the off chance that it forestalls or discourages the criminal from rehashing the wrongdoing and furthermore hinders others in showcasing a wrongdoing later on. One issue utilitarian contemplations have are, above all else utilitarian attempt to diminish the measure of despondency as much as could be expected under the circumstances, in doing that they are additionally decreasing the measure of discipline given for the demonstration of homicide. So by this reality it isn't right to decrease the measure of discipline just to make joy. A homicide merits each ounce of discipline that joins the cost of murdering. The retributive considerations of the death penalty, above all else is that all lawbreakers gain discipline and furthermore adding to this is the discipline ought to be equivalent in treatment to the wrongdoing. Retributive likewise conforms to tit for tat, much the same as the measure of discipline depends on the level of the wrongdoing. The issue with retributive reasoning is that in the event that you slaughter two individuals the discipline you merit undeniably increasingly, at that point only the executing of you, yet the murdering of one of your relatives. The retributive conclusion is more on an individual disapproved of support, for instance on the off chance that you address a casualty who simply had his better half and girl executed by someone else he will need the equivalent done to him as a result of the pshycolgical impact that was put on the person in question. My assessment on capital punishment is that in the event that you submit a murdering you merit the discipline that joins it. I wonder why the states hold up a normal of twenty years to place a homicide in the seat; there ought not be a hole between the wrongdoing and the discipline. Consistently after the executioner gets the opportunity to live after the wrongdoing the individual is being dealt with unjustifiably toward the casualty's privileges. I am not discussing a criminal demonstration comprising of taken products or ambush of someone else I'm looking at taking blameless people life for reasons unknown. I imagine that is a wiped out and unlawful act to submit; the punishment ought to be given as quick as could reasonably be expected, to show the significance of guiltless life. The death penalty ought to consistently be rehearsed; it is or can be thought of as a controller of society. As it were it resembles a ruler, the individuals who follow won't get discipline, and the indiv iduals who don't tail it will get the discipline. General society merits the wellbeing of the death penalty. The death penalty scares individuals pondering carrying out a wrongdoing. This is a demonstrated truth; you can look into the chronicles of states with capital punishment and see that the executing rate has gone down since the law was passed. A great many people dread demise and the death penalty is dread itself, numerous individuals will abstain from coming to struggle with the law. Putting somebody on existence without any chance to appeal resembles giving him a blessing. A few people will kill or perpetrate a wrongdoing just to be sent to prison, they feel like it will be a superior life for them. They get three suppers every day and have an asylum to remain in, yet we would prefer not to give a criminal what he needs, we need to give him the most extreme discipline for his

Exegesis Paper Essay Example | Topics and Well Written Essays - 2250 words

Exposition Paper - Essay Example When it was composed? The response to this inquiry isn't exactly as totally dubious as that identifying with creation. There is additionally vulnerability concerning the specific date of the composition of Hebrews. Various references to the sanctuary of Jerusalem appear to put the date of composing preceding the fall of Jerusalem in A.D. 70, (Heb. 10:11; 13:10-11). So around A.D. 66 appears the most agreeable date. The real spot of composing is hazy. The main intimation we have for a response to this inquiry is found in Hebrew 13:24 †â€Å"They of Italy salute you.† The Greek word interpreted â€Å"of† is â€Å"apo†, which implies â€Å"from†. So the reference could mean either that the essayist was in Italy or that he was sending welcoming back to Italy from certain Italians who were with him. Structure and parallelism The book of Hebrews possesses a significant spot in the Scriptures. It is the Spirit’s editorial on the Pentateuch, particular ly the book of Leviticus. The essayist utilizes the Old Testament Scriptures all through, making at any rate eighty-six direct references, recognizable to at any rate one hundred Old Testament sections. Jews clarifies the importance and essentialness of the entire Jewish custom. It clarifies that all the stylized laws given in the Old Testament, for example, the contributions of penances and the ministrations of the clerics were nevertheless sorts pointing forward to Christ, the extraordinary penance for wrongdoing, the genuine Priest the one Mediator among God and man.  Literary Criticism Form Criticism and Redaction Criticism The theme which is talked about at the best length in the Epistle to the Hebrews is that of Christ as High Priest. The following six parts (5 †10) are immersed with the thought. The section before paves the way to part four and matches with for it doesn't influence the entry. The abstract type of Hebrews will be Hebrews has customarily been depicted as an epistle or letter. It shows up in the New Testament in the assortment of letters. It works as a pivot associating the 13 Pauline letters and the 7 general or Catholic Epistles. Notwithstanding, Hebrews does not have the fundamental fixings that distinguished old letters. There is no notice of writer, no notice of addressees, no welcome, no thanksgiving segment and no petition for the perusers in the initial lines. The end refrains of Hebrews 13 do mirror the customary manner by which a letter should close. Jews is regularly contrasted and Romans. Jews presents the Person of salvation; Romans presents the method of salvation. The book of Hebrews centers around the stylized law of the Old Testament; and looks at to Romans, on the ethical law of time. â€Å"Romans moves from law to effortlessness, and Hebrews, from shadow to substance. The redaction analysis of this entry shows that with respect to the Old Testament Leviticus is the book of the contract of the Law and Romans which is corresponding to Hebrews gives us Gods effortlessness and leniency. Substance The catchphrase of this Epistle is â€Å"better†. It happens multiple times in the thirteen sections. Christ is appeared as superior to blessed messengers (cc1-2), superior to Moses (c.3), superior to Joshua (c.4), superior to Aaron (cc.5-10).Christianity is pronounced to be a superior contract (c.8) It offers a superior rest, a better organization, a superior special stepped area, a superior penance. The topic of the book is the prevalence of Christianity over Judaism. Inside and out it is a superior religion. The importance of the word â€Å"

Cellphones At School essays

Cellphones At School articles Mobile phones ought to be restricted from country schools. There is no purpose behind them in country schools, they are an interruption, lastly they could help in savage To start with, there is no purpose behind them. There are methods of getting tightly to whoever you need(parents). In the event that you have to call your folks; the workplace will be more than happy to let you use there telephone. Additionally, there are Next, they are an interruption. You wouldn't care for it in class on the off chance that you were taking your finals telephone rang in class. You wouldn't pay a bit of regard for what your were doing you consideration on them. You would presumably misfortune your Last, mobile phones can help into vicious acts. Individuals can get out caution; it's opportunity to arrive not believe that can occur in your school however it truly At long last, wireless ought to be prohibited from country schools. There is no purpose behind them; they are a interruption; lastly they can result into brutal very late book reports keep me enduring ... <!

Appendix in APA Format

Appendix in APA Format August 07, 2019 damircudric/Getty Images More in Student Resources APA Style and Writing Study Guides and Tips Careers In This Article Table of Contents Expand What to Include in an APA Appendix Basic APA Appendix Rules Where to Include an Appendix Does Your Paper Need an Appendix? Formatting Your Appendix If you are writing a psychology paper for a class or for publication, you may be required to include an appendix in APA format. An appendix is found at the end of a paper and contains information that supplements the text but that is too unwieldy or distracting to include in the main body of the paper.   APA format is the official writing style used by the American Psychological Association. This format dictates how academic and professional papers should be structured and formatted.   What to Include in an APA Appendix The APA official stylebook suggests that the appendix should include information that would be distracting, inappropriate, or burdensome to the reader. Some examples of information you might include in an appendix include: Raw data (presented in an organized, readable format)Extended or detailed descriptionsDemographic details about participants or groupsLists of supporting research and articles that are not directly referenced in-textLists that are too lengthy to include in the main textLarge amounts of raw dataQuestionnaires that were used as part of your researchResearch surveysExamples of participant responsesCorrespondence (if it pertains directly to your research)Materials and instruments (if your research relied on special materials or instruments, you might want to include images and further information about how these items work or were used) While the content found in the appendix is too cumbersome to include in the main text of your paper, it should still be easily presented in print format. The appendices should always act as a supplement to your paper. The body of your paper should be able to stand alone and fully describe your research or your arguments. The body of your paper should not be dependent upon what is in the appendices. Instead, each appendix should act to supplement what is in the primary text, adding additional (but not essential) information that provides extra insight or information for the reader.   How to Write a APA Format Paper Basic APA Appendix Rules Your paper may have more than one appendixEach item usually gets its own appendix sectionBegin each appendix on a separate pageEach appendix must have a titleUse title case for your title and labels (the first letter of each word should be capitalized, while remaining letters should be lower-case)If your paper only has one appendix, simply title it Appendix  If you have more than one appendix, each one should be labeled Appendix A, Appendix B, Appendix C, and so onPut the appendix label centered at the top of the pageOn the next line under the appendix label, place the centered title of the appendix  If you refer to a source in your appendix, include an in-text citation just as you would in the main body of your paper and then include the source in your main reference sectionEach appendix may contain headings, subheadings, figures, and tables  Each figure or table in your appendix should include a brief but explanatory title, which should be italicized   Data Displays When presenting information in an appendix, use a logical layout for any data displays such as tables or figures. All tables and figures should be labeled with the words “Table” or “Figure” (sans quotation marks) and then numbered. Data displays should be presented in the appendix following the same order that they first appear in the text of your paper. Examples of APA Format Where to Include an Appendix If your paper does require an appendix, it should be one of the very last pages of your finished paper. An APA format paper is usually structured in the following way: Title pageAbstractMain textReferencesTablesFiguresAppendixFootnotes Your paper may not necessarily include all of these sections, however. At a minimum, your paper may consist of a title page, abstract, main text, and reference section. Also, if your paper does not contain tables, figures, or footnotes, then the appendix would be the last page of your paper. Never include an appendix containing information that is not referred to in your text.   Does Your Paper Need an Appendix? Some questions to ask about whether you should put information in the body of the paper or in an appendix: Is the material necessary for the reader to understand the research? If the answer is yes, it should be in your paper and not in an appendix.Would including the information interrupt the flow of the paper? If the answer is yes, then it should likely appear in the appendix.Would the information supplement what already appears in your paper? If yes, then it is a good candidate for including in an appendix. Your appendix is not meant to become an information dump. While the information in your appendices is supplementary to your paper and research, it should still be useful and relevant. Only include what will help readers gain insight and understanding, not clutter or unnecessary confusion.   Formatting Your Appendix Since there are no rules specifying how the information in an APA appendix should be formatted, you should follow the overall rules on how to format text. Such rules specify what font and font size you should use, the size of your margins, and the spacing of the text. Some of the APA format guidelines you need to observe: Use a 12-point, Times New Roman fontDouble-space your textThe first paragraph should be flush left, but all subsequent paragraphs should be indented on the first linePage numbering should be continuous with the rest of your paper In addition to following basic APA formatting rules, you should also check to see if there are additional guidelines you need to follow. Individual instructors or publications may have their own specific requirements. A Word From Verywell Writing a paper for class or publication requires a great deal of research, but you should pay special attention to your APA formatting. Each section of your paper, including the appendix section, needs to follow the rules and guidelines provided in the American Psychological Association’s stylebook. How to Write a Psychology Research Paper

Risk Is Present Everywhere Finance Essay - Free Essay Example

Risk is present everywhere. It is an important player in any financial system. As such, the banking institution should manage their risk efficiently in order to survive in this highly uncertain world. . It can be said that Banks are in the business of managing risk, not avoiding risks or a banks success lies in its ability to assume and aggregate risk within tolerable and manageable limits. First author Prof RekhaArunkumar and second Author Dr. G. Kotreshwar. Only those banks that have an efficient risk management system will survive in the long run and the effective management of credit risk is a critical component. Credit risk is the oldest and biggest risk that bank, by virtue of its very nature of business, inherits. This has however, acquired a greater significance in the recent past for various reasons. Foremost among them is the wind of economic liberalization that is blowing across the globe. (Rekha A., 2004). In this literature review, the researcher explain the how credit risk arises and some ideal principle of credit risk management. The research covers theories and previous studies on the equivalent title. Definition of bank In order to have a better understanding of the different type of risk arises from the banking sector. Let define a bank itself. A bank is considered as a financial intermediary who make surplus unit meet deposit unit. More precisely, the bank accepts deposit from surplus unit and gives loan to deficit unit or through capital markets. As, bank are cornerstone of every countries economy, therefore, it is highly regulated. Banks main revenue comes from lending loan. They use an ideology call the fractional reserve banking, that is, they keep 10% of their deposit and lend 90% of it in order to make profits (Wikipedia). The banks have also a minimum capital requirement which has been initiated from 1988. These requirements are regulated by the Basel framework. This framework is regulated internationally. There are also other definitions of banks but generally it contained the same message. According to Crowther, A bank is a firm which collects money from those who have it spare. It lend s money to those who require it. According to Mr Parking, A bank is a firm that takes deposits from households and firms and makes loans to other households and firms. Core function of banks The main business of banks is to grant loan and accept deposit. Loan is a debt, which entails the redistribution of the financial assets between the lender and the borrower. Another core function of the banks is to accept deposit. The bank therefore, make the deficit unit (person needing the loans) meets the surplus units (person accepting the loans). According to Kelly Kendrick (the basics of Business bank loans), there are two basic types of loan mainly consumer loans and commercial loans. Commercial loans are mostly granted to businesses. These loans are granted to finance, financing equipment, financing an office building or construction loan. Consumers loans are made to individuals are used for personal reasons or financing home. The terms of the loan include the payment plan, payback period (or amortization period) and the interest rate. Granting loan is the main source of income for any income for any commercial banks. They give loan to their clients and in return charge an interest rate to the client. The most important income of banks is to accept deposits from its clients. The bank has to accept money from various types of income earners. The bank has to accept the society as a whole; therefore it has to response to all kind of deposits from low income earners to businessmen. For the fixed income earners, their main objective is to keep their money in a safe place and think about their future plans while for business, they deposit their saving mainly as a mode of payments. Relationship between Deposits and Credit risk Banks earn the core amount of their income from the spread between the interest rate they charge to borrowers and the interest rate they pay to depositors. The main reason for lenders and borrowers to enter into relationship is to be able to reduce, the amount of asymmetric information and agency costs. Agency cost refers to cost which are attributed to the transactions, where a banks acts in the form of agents and representatives of their clients and the latter should consent to the particular tasks. Agency costs also mean that bankers require the bank to back its lending with a minimum amount of its own capital ( Over Rein Hetland (May 25, 2011)) also and asymmetric information refers to a situation where the banks are unaware of some information that only the borrowers know. According to an analysis made by Wharton 1999 (Deposits and relationship lendings) , A durable lending relationship, in which the bank gains information about the borrowing firm, has been shown to be valuabl e both to small firms (Petersen and Rajan, 1994, and Berger and Udell, 1995) and to large firms (Lummer and McConnell, 1989, and Slovin, Sushka, and Polonchek, 1993). In particular, continuing relationships are associated with lower loan rates, less stringent collateral requirements, and a lower likelihood of credit rationing. From another regression works by, Over Rein Hetland(May 25, 2011), We see that the existence of a positive deposit account balance increases interest rate margins paid by the firm, but it also increases credit granted which would automatically increase the credit risk of the bank. From the same regression works, Over Rein Hetland also pointed out that, firm borrowers with deposit accounts are more likely to remain borrowers at a bank when the bank faces high loan losses, relative to other borrowers not holding deposits at that bank. In my future analysis, I would like to analyze if the banking sector in Mauritius has been able to cope with the credit ris k arises with the amount of deposit and agency cost. Relationship between Loans and Credit risk The main risk which arises form loan is credit risk. The researchers have characterized loans components and see if, there is any correlation with credit risk. The main components are: Collateral, maturity, size of the loan, type of lender and relationship between customer and bank. Collateral can be defined as the property or other assets that a borrower offers to a lender to secure a loan. Collateral has been classified as a complex debate from various authors. (Stiglilz and Weiss 1981), Bester (1985), Chan and Kanatas (1985) said that, lower risk borrowers are willing to pledge more and better collateral, given that their lower risk means they are less likely to lose it. It can be said it more simpler words that collateral may help to control the problem of moral hazard and asymmetric information. Freixas and Rochet (1997) concluded that high risk borrowers do not need to post collateral whereas low risk ones do, in exchange for lower interest rates. It can be assumed that th e collateral create a situation where both parties make the same effort in order to make the project works. However, the empirical evidence shows that the bankers normally associates collateral to with greater risk borrower. (Orgler 1970), (Hester 1979). There are also some arguments which compromised the relationship explained above, Saunders (1997) claims that the best lenders do not need to post collateral as their credit risk is small. (Manove and Padilla (1999, 2001)) said that, the probability that more collateral entails more non-performing loans or greater probability of default. In my future analysis I would like to analyze if, the Mauritian Banking sector has a positive or negative relationship between loans and collaterals. Maturity In our modern era, the longer maturity date, the more likely, the borrowers would have trouble to repay back the loan. Due, to the volatility of the economies we are currently living in. According to (Jackson and Perraudin (1999), the longer the maturity, ceteris paribus, the greater the risk of the borrowers encountering problems. Flannery (1986) had concluded also that, the maturity is an alternative mechanism for solving the problems of adverse selection and moral hazard in credit relationships. However, this assumption is highly criticized, because in other words, due to the facts that it considered that lower risk borrowers would therefore choose short term finance, the shorter the maturity, the lower the risk. It can be noted that this argument cannot be considered right. As such, the empirical evidence, shows that credit risk and maturity have a negatively relationship (Berger and Udell (1990)), and even no relationship (booth (1992)). In my analysis, I would like to test whether; the maturity has a positive impact on the credit risk. Size of the loan According to Gabriel Jimenez and Jesus Saurina (2002), size of loan is directly related to the size of the borrower, the age of the company and the le ngth of the bank-borrower relationship. They consider those attributes to be an indicator of credit risk. The smaller the loan, it is related to newly created companies which involve greater credit risk, therefore, greater rates of default. Large loan to large companies are considered to be less risky as the big companies has greater financial stability. It can also be noted that large loan are scrutinize in more detail which result in lower rate of default. The empirical evidence from (Berger and Udell (1990) and Booth (1992) agreed with this statement. (Berger and Udell (1995), Leeth and Scott (1989) and Harhoff and Korting (1997) have noted that small companies are more opaque in information terms than large ones, as such they provide more collateral to secure loans. As such, it creates a positive empirical relationship between collateral and credit risk and a negative relationship between size and default. (Gabriel Jimenez and Jesus Saurina (2002). Relationship between type o f lender and relationship between customer and bank on credit risk According to Gabriel Jimenez and Jesus Saurina (2002), a close relationship between the bank and the borrower enables bank to obtain extremely valuable information about the latters economic and financial institution. According to (Sharpe (1990) and Rajan (1992)), this close relationship may produce informational rents for the bank which would enable them to exercise a certain degree of market power in the future. Therefore, banks may be prepared to finance riskier borrowers if they can subsequently offset this high default rate by applying higher interest rates to the surviving companies. (Petersen and Rajan (1995)) I would like to test whether the bonding between banks and customers do have a positive impact on the credit risk. Customer satisfaction has become an important issue nowadays. (According to Ernst Young February 2010). How macroeconomics affect credit risk in the banking sector? Macroeconomic views In general credit risk refers to a situation where, a loan not being paid to the lender. (Vitor Castro (2011/2012)). An analyse of credit risk is vital because it signals that a financial sector has becomes more vulnerable to shocks. (Vitor Castro (2011/2012)). This can help the regulatory authorities to take measures to prevent a possible crisis (Agnello and Sousa, 2011; Agnello et al., 2011) and the analyse is important because many banks bankruptcies are related to the huge ratio of nonperforming loans to the total loans. (Heffernan (2005)). The aim of this literature is to find the distinct economic factors that affect the credit risk in the banking sector. There are factors which influence everyone in the economic as such; it is named credit systematic risk. (Vitor Castro (2011/2012)). The main macroeconomic factors are: Employment rate movements, growth in gross domestic product, stock index, inflation rate and exchange rate movements. These ar e the main macroeconomic policies which surely affect a borrowers repaying rate. There are also factors which are limited only to the borrowers and the financial institution. In other word, the unsystematic credit risk (Vitor Castro (2011/2012)): In the case of individual, we have different traits and personality, their financial position and their particular credit insurance (Vitor Castro (2011/2012)) To the companies, management, financial position, sources of funds and financial reporting and their ability to pay the loan and specific factors of the industry sector. (Vitor Castro (2011/2012)) According to many other researches, Aver (2008), Bohachova (2008), Bonfim (2009), Kattai (2010) and Nkuzu (2011) have pointed out that these factors considerable influence on the changes of credit risk. Aver (2008) shows that the credit risk of the Slovenian banking loan portfolio depends especially on the economic environment (employment and unemployment), long-term interest rates and on the value of the stock exchange index. According to other research, Kattai (2010) Fainstein and Novikov (2011) the latters have arrived for the same conclusion basing their study for three countries mainly, Estonia, Latvia and Lithuania). These results have indicated the importance of interest rate and economic growth in the good running of the banking system. The researchers have also pointed out the impact of macroeconomic factors on credit default. Many researchers have concluded that, the macroeconomic have an impact on credit default. Ali and Daly (2010) had compared Australian data and Us data for the period 1995-2009 and they found that, the level of economic activity, interest rates and total debt provide meaningful indicators for aggregate default. According to Pesola (2005) regression model an analyses of the macroeconomic determinants of banking sector distresses in comparison of some industrial countries for the period 1980-2002, the author has concluded that h igh customer indebtedness combined with adverse macroeconomic surprise shocks to income and real interest rates contributed to the distress in banking sector. More precisely, Pesola (2005), Jimenez and Saurina (2006), Bohachova (2008) and bonfim (2009) they concluded by saying that the result of wrong decisions of financing will become apparent only during the period of recession of the economy and this will cause the growth of non-performing loans and loan losses. In other survey, made by Louzis et al. (2012), an analysis of nine greek banks over the period 2003-2009, the author have concluded that GDP growth rate, unemployment rate and also the lending rates have a deep impact on the level of nonperforming loans. Following these analyses of the researchers, I would like to analyse the effect of the macroeconomics on the credit risk and acknowledge whether they are correlated. There are also some analyse work on the credit unsystematic risk. Jimenes and Saurina (2004) and Ahmad and Ariff (2007) had concluded that collateralized loans have higher probability of default and that loans granted by savings banks are riskier and that a close bank borrower relationship increases the willingness for banks taking more risk. It is important to understand the macroeconomic views in order to have an adequate understanding of the impact credit risk on the banking sector. By underlying the basis macroeconomic views, it would be easier to understand the dilemma the bankers are in. Credit Risk in banking According to the Basel Accords, the main risks the banks are facing are credit risk, market risk and operational risk. In the Basel Accords words, credit risk is the risk of loss due to an obligators non-payment of an obligation in terms of a loan or other lines of credit. According to (Joan Selorm Tsorhe p.6) and (R.S. Raghavan, 2003) credit risk is the potential that a bank borrower/counter party fails to meet the obligations on agreed terms. According to Prof Rekha Arunkumar, credit risk occurs when a borrower default to repay the lent money and remain the most important risk to manage till date. The banks cannot have any guarantee that the borrowers would fulfill its obligation. The borrowers may incur any kind of difficulties in a foreseeable future which would result in the crystallization of credit risk to the bank. As such, it is considered as one of the most important and complex risk, the bank may have to deal with. According to Prof Rekha Arunkumar, Credit risk is the ol dest and biggest risk that a bank can faced and by virtue of its very nature of the business inherits. Component of Credit risk According to Wikipedia, Credit risk Consist of type of risk mainly: Credit default risk Concentration risk Country risk Credit default risk refers to the risk of loss arising from a debtor being unlikely to pay its loan obligations in full or the debtor is more than 90 days past due on any material credit obligation; default risk may impact all credit-sensitive transactions, including loans, securities and derivatives. Secondly we have concentration risk; it is associated with any single exposure or group of exposures with the potential to produce large enough losses to threaten a banks core operations. It may arise in the form of single name concentration or industry concentration. Finally, we have country risk which is associated with the loss arising from a sovereign state freezing foreign currency payments (transfer/conversion risk) or when it defaults on its obligations (sovereign risk). Our next section, we would look at how the different banks manage credit ri sk. This is the core idea of this study. Credit risk Management in the Banking Sector Banks earn the core of their income from the differences in the interest rate they set for deposits and loans. As such, lending has always been an integral function for banks. In order to set the appropriate rate, the banks have to assess the credit worthiness of the borrowers. (Andrew Fight, 2004). The banks are in an obligation to set appropriate rate to be able to compensate for the default amount in order to maximize its profit. In order to be competitive, the banks have to conduct an adequate credit risk management framework. This particular framework would help them be in a better position to cope with the difference problems attached to credit risk. According to a search, credit risk takes about 70% and 30% remaining is shared between the other two primary, that is, Market risk and operational risk. Banks can reduce their credit exposure by applying to the following credit risk management principles. The following principles are identified by Fredrick S. Mishkin: Screenin g and Monitoring: It mainly refers to adverse selection which occurs when a bank cannot differentiate between good payers and bad payers. The banks should have some background works on the client and if the loan has been approved, the bank should monitor the borrowers activities. According to Diamond (1984, 1991, 1996), screening and monitoring of loan takers are important functions to banks. According to DellAriccia, Igan and Laeven (2008), before the financial crisis of 2007-2009, banks had reduced their strictness on their monitoring and screening standard. Keys, Mukherjee, Seru and Vig (2010) and Milan and Sufi (2009) have indicated that securitization has somehome reduced the incentives of US mortgage lenders to properly screen borrowers. It can be noted in the beginning of the financial crisis that, banks have improve their screening and monitoring standards, improving their retention rates( according to Wikipedia, retention rates is the ratio of the number of retained cust omers to the number at risk). Long term Customer Relationship: If the particular client have previously deal with the banks, the banks would be in a better position know whether the client is a good or bad credit. This would definitely reduce the cost of information. According to TIBEBU TEFERA (June 2011), long- term relationship enables banks to deal with even unanticipated moral hazard contingencies. According to Galbreath and Rogers (1999), CRM can be described as activities a business performs to identify, qualify, acquire, develop and retain increasingly loyal and profitable customers by delivering the right product or service, to the right customer, through the right channel, at the right time and the right cost. . (according to Ernst Young February 2010). According to a survey in France, 35% of customer has changed banks due to bad services. (Ernst Young February 2010). In another survey, 46% of current level of personal relationship as either bad or limited. Uk 12 pe r cent, Italy 13% and 40% Spanish customers. (Ernst Young February 2010). According to Ivana Domazet, Jovan Zubovic and Marko Jelocnik (2010) has indicated that the two main determinants of the success in the investment banking sector are: customer satisfaction and product quality. As, the customers in the banking sector are well educated about the market, therefore, they are not loyal about any particular brand. Collateral Requirements: According to investopedia, collateral is a property or other assets that a borrower offers a lender to securing a loan. If the borrower stops payment, the lender can seize the collateral to recoup its losses. As such, it can be considered an important tool as it pressures the borrower to meet the demand of the loan contracts. According to J. Peltoniemi (2007), good borrowers quality is associated with higher collateral requirements. In European countries, Davydenko and Franks (2004) concluded that 75.7% of firm loans in France, 88.5% in Germa ny are secured and Gonas et al (2004) argued that 73% loans are secured in US firm loans. According to GreenBaunm and Thakor (1995), First, collateral allows a reduction of the loan loss for the bank in the event of the default of the loan and secondly, collateral helps to solve the problem of adverse selection borne by the bank when lending, as it constitutes a signalling instrument providing some valuable information to the bank. I would like to analyse these particular relationship in my future analysis. Credit Rationing According to (Frederick S.Mishkin, 2004, pp 217-220) it is one way of credit risk management that refers refusing to make loans even though borrowers are willing to pay the stated interest rate or even a higher rate. Diamond (1984), Williamson (1986) and Krasa and Vilamil (1992) concluded that banks success lied in their ability to analyse economies of scope in performing monitoring of borrowers on behalf of lenders. For Thilo Pausch (February 2005), banks have a well-diversified loan portfolio which help them reduced the credit risk. It can be noted that credit rationing is can be considered an important tools for credit management. According to the various researchers mention above, if a bank is able to understand all these concepts, they would be in a better place to control credit risk. Some other principles are listed below: Credit rating agencies Many debt securities are assigned by credit rating agencies. The most common credit agencies S Ps and Moodys. This categorization would obviously facilitate the institution to judge the securities but they should also carry their own classification. Example of classification by moodys are as follows: Moodys S Ps Aaa Aa1 Aa2 Aa3 A1 A2 A3 Baa1 Baa2 Baa3 INVESTMENT GRADE AAA AA+ AA AA- A+ A A- BBB+ BBB BBB- Ba1 Ba2 Ba3 B1 B2 B3 Caa1 Caa Caa3 Ca C HIGH YIELD BB+ BB BB- B+ B B- CCC+ CCC CCC- CC C D Banks use credit ratings as proxies for the quality of collateral. (Jens Hilscher and Mungo Wilson January 2012). The main idea behind these classifications according to Jens Hilscher and Mungo Wilson is that, the credit ratings are thought to provide information about the likelihood of default and other forms of corporate failure. It can be noted that, credit rating in the banking sector are considered an important tools. According to Fitch IBCA views, a companys performance and financial stability, the risks to its operations and the degree of any external support is summarized in a given rating. Loan loss provision The institution should have provided a specific amount of reserve for the obvious losses based on their analysis of the borrowers creditworthiness. The provision which concerned mainly the loan is considered as specific loan (Hong kong Monetary Authority May 1999). As such, the bank would be able to bear the loss of certain loan losses. The bank should also provide a provision for the unexpected losses. These provisions are categories as general provision. Generally, all banks consist of a system of establishment of proper provision. All establishments have their own ways of establishing their own institution provision scheme. According to a Hong Kong Monetary Authority May 1999, the loan provision should be based on the assessment of the recoverability of individual loans or portfolios of loan with similar characteristics. Therefore, it is essential to hedge against credit risk. Risk Processing According to STANDARD POORS the appropriate step should be as follows: Set Credit Objectives and responsibilities Set credit risk Guidelines Collect credit Data Measure Credit Risk Make credit Decisions Monitor Credit Performance Allocate Credit Capital It be noted that the formula for calculation of expected loss are: Expected loss = Probability of default * loss given default (Bank of international settlement 2001) According to Standard poors if any institution follows these criteria they would be in a better place to understand credit risk management. Credit risk processing takes into consideration many internal and external factors of an organization. ( Oesterreichische Nationalbank (OeNB, 2004). This thorough assessment would help the bank to anticipate credit risk more adequately. Credit Culture According to Thomas H.McManus, Senior Examiner (SRC insights: first quarter 2004), a credit culture is the sum of all the characteristics of an organizations unique behaviour in its extension of credit. Another definition can be Credit culture embraces all the factors that bear on credit extension, credit quality and recurrent cyclical patterns and sequences. (Mueller 1995, pp.41). The credit culture of banks also has implications for the smooth transmission of monetary policy as its effectiveness in manipulating movements in lending rates may be diluted if the credit cultures of banks are not driven by prices. (Anthony Birchwood, University of the westIndies, stAuugustine Campus). According to Dam Dan Luy (2010), credit culture encompasses attitudes, perception, behaviours, styles and beliefs that are conducted and practiced throughout the credit organization as a result of management attitudes towards credit risks. As such, credit culture can be considered as an important aspect of credit risk management. Credit culture is considered as the cement that fixes the credit process and forms the foundation for credit discipline. Credit Culture at Goldman Sachs (Risk Management and credit Lending by Prof Albert Ip, December 15 2011) Sophisticated, detailed understanding of risks by senior management Culture of over communication Escalation, Escalation, Escalation Co-option of business unit professionals into risk Management Accountability Long history of Promoting risk Managers Intolerant of lack of control focus Learn from past mistakes To conclude, it can be noted that, there are a variety of risk management framework even though it is impossible to completely eradicate credit risk from the banking sector. In my future research work, I would like to test, if in our local banking system, does the banks have any particular type of credit risk management framework and whether it helps to reduce the credit risk and increase the profitability of the bank. Basel Framework History The first Capital Accord was introduced in 1988. The capital accord was created from the Basel Committee on Banking Supervision. It was a committee of banking supervisory authorities of the G-10 countries. Their main objectives were to establish a framework for bank supervision with a view to strengthen the stability of financial institutions in general and banks in particular. According to the Bank for international settlements (Aug 2009), the committee provides a forum for regular cooperation between its member countries on banking supervisory matters. It seek to achieve these objectives via 3 ways, mainly, by exchanging information on national supervisory arrangements, by improving the effectiveness of techniques for supervising international banking business and by setting minimum supervisory standard in areas where they are considered desirable. (Bank for international settlements (Aug 2009)). The main aspect of the Basel accord 1988 was the minimum capital ratio of capital to risk-weighted assets of 8 per cent by end-1992. The framework has reached practically all countries with an international active bank. The accord was built to be continuously improved to the demand of the world economy. In November 1991, it was amended to give a greater precision to the definition of those general provisions or general loan-loss reserves which could be included in capital for purposes of calculating capital adequacy. (Bank for international settlements (Aug 2009)). There was another amendment taking effect at the end of 1995, to recognise the effects of bilateral netting of banks credit exposures in derivative products and to expand the matric of add on factors. In 1996, there was a amendment concerning market risk. In 1999, there was a new proposal for a new capital adequacy framework to replace the 1988 accord and released in 26 June 2004. It contains three important aspects mainly: minimum capital requirements, supervisory review of an institutions ca pital adequacy and internal assessment process and effective use of disclosure as a lever to strengthen market discipline and encourage safe and sound banking practices. (Bank for international settlements (Aug 2009)). In July 2009, the Basel committee has decided to create the Basel 3 in order to face the changing business industry we live in. How to manage Credit risk under the Basel Framework? Basel framework has pointed out four specific steps in order to manage credit risk (Basel Committee on Banking Supervision September 2000): Establishing an appropriate credit environment Operating under a sound credit granting process Maintaining an appropriate Credit administration, measurement and monitoring process Ensuring adequate controls over credit risk. Establishing an appropriate credit risk environment Principle 1: The board of directors should have responsibility for approving and periodically (at least annually) reviewing the credit risk strategy and significant credit risk policies of the bank. The strategy should reflect the banks tolerance for risk and the level of profitability the bank expects to achieve for incurring various credit risks. Principle 2: Senior management should have responsibility for implementing the credit risk strategy approved by the board of directors and for developing policies and procedures for identifying, measuring, m onitoring and controlling credit risk. Such policies and procedures should address credit risk in all of the banks activities and at both the individual credit and portfolio levels. Principle 3: Banks should identify and manage credit risk inherent in all products and activities. Banks should ensure that the risks of products and activities new to them are subject to adequate risk management procedures and controls before being introduced or undertaken, and approved in advance by the board of directors or its appropriate committee. Operating under a sound credit granting process Principle 4: Banks must operate within sound, well-defined credit-granting criteria. These criteria should include a clear indication of the banks target market and a thorough understanding of the borrower or counterparty, as well as the purpose and structure of the credit, and its source of repayment. Principle 5: Banks should establish overall credit limits at the level of individual borrowers and counterparties, and groups of connected counterparties that aggregate in a comparable and meaningful manner different types of exposures, both in the banking and trading book and on and off the balance sheet. Principle 6: Banks should have a clearly-established process in place for approving new credits as well as the amendment, renewal and re-financing of existing credits. Principle 7: All extensions of credit must be made on an arms-length basis. In particular, credits to related companies and individuals must be authorized on an exception basis, monitored with particular care and other appropriate steps taken to control or mitigate the risks of non-arms length lending. Maintaining an appropriate credit administration, measurement and monitoring process Principle 8: Banks should have in place a system for the ongoing administration of their various credit risk-bearing portfolios. Principle 9: Banks must have in place a system for monitoring the condition of indi vidual credits, including determining the adequacy of provisions and reserves. Principle 10: Banks are encouraged to develop and utilise an internal risk rating system in managing credit risk. The rating system should be consistent with the nature, size and complexity of a banks activities. Principle 11: Banks must have information systems and analytical techniques that enable management to measure the credit risk inherent in all on- and off-balance sheet activities. The management information system should provide adequate information on the composition of the credit portfolio, including identification of any concentrations of risk. Principle 12: Banks must have in place a system for monitoring the overall composition and quality of the credit portfolio. Principle 13: Banks should take into consideration potential future changes in economic conditions when assessing individual credits and their credit portfolios, and should assess their credit risk exposures under stres sful conditions. Ensuring adequate controls over credit risk Principle 14: Banks must establish a system of independent, ongoing assessment of the banks credit risk management processes and the results of such reviews should be communicated directly to the board of directors and senior management. Principle 15: Banks must ensure that the credit-granting function is being properly managed and that credit exposures are within levels consistent with prudential standards and internal limits. Banks should establish and enforce internal controls and other practices to ensure that exceptions to policies, procedures and limits are reported in a timely manner to the appropriate level of management for action. Principle 16: Banks must have a system in place for early remedial action on deteriorating credits, managing problem credits and similar workout situations. The role of supervisors Principle 17: Supervisors should require that banks have an effective system in place to identify measure, monitor and control credit risk as part of an overall approach to risk management. Supervisors should conduct an independent evaluation of a banks strategies, policies, procedures and practices related to the granting of credit and the ongoing management of the portfolio. Supervisors should consider setting prudential limits to restrict bank exposures to single borrowers or groups of connected counterparties. Guideline on Credit risk Management according to Bank of Mauritius The Guideline was issued by the bank of Mauritius for two main purposes. Firstly, it set out the responsibilities and accountabilities of the board of directors and management in credit management and secondly, it outlines the processes to be used in Managing the credit activity in a financial institution. Establishment credit risk policy Ensure credit risk policy is accepted by the board of directors Ensure credit risk policy is accepted by chief executive officer Conduct review and risk policy Committee Credit processing/Appraisal Credit Approval/Sanction Credit Documentation Credit Administration Disbursement Monitoring and control of individual credits Monitoring the overall credit portfolio (stress testing) Credit Classification Managing problem credits/recovery

Analysis Of The Passage From The Novel Cold Blood

In Cold Blood commentary The passage from the novel ‘In Cold Blood’ by Truman Capote is an account and description of the events which resulted in the brutal murder of the Clutter family. It focuses on a man named Floyd Wells, who is the primary character discussed. This except re-accounts the discovery of some background information, told from a different point of view. Wells, still in prison, implies that his actions practically caused the murder; as he was familiar with one of the victims-Herb Clutter, along with Dick, having been his ex cellmate in the past. The author begins this passage with descriptions on Floyd Wells’ appearance, using imagery by describing him as â€Å"short and nearly chinless†, in lines 1-2. Capote also uses†¦show more content†¦Since this passage is research based, the interview excerpt provides a more personal and realistic account of the events, and allows for a better grasp on the situation. Both sections are primarily addressed towards the reader, as the quotes were selected by the author himself, however, some aspects of Wells’ interview in section two are more likely to be formally directed towards Capote, as one can notice the parts during the interview in which he describes his emotions towards the Clutter family, expressing words like â€Å"A nice family, real nice. I never forgot them.† in lines 20-21 on the second page. Consequently, when Wells looks back on the past and illustrates the moments of his life that led him to working for Mr. Clutter, the entire second section becomes one general allusion, in which he references various junctures which have become crucial memories. The presence of this in the text supports every event that Capote describes, along with its role on filling the reader in on the details by achieving a certain affirmation of truth. Furthermore, the author employs the use of short sentences such as â€Å"Wells was stunned.† And â€Å"He couldn’t hardly believe it.†, creating a more abrupt progression of thought, which invokes this feeling of surprise and disbelief in reader. Towards the ending of thisShow MoreRelatedLiterary Analysis of The Dancing Bear and Planting a Sequoia858 Words   |  4 PagesAnalysis of William Frederick Witherington’s short story The Dancing Bear 1. The initial impression gathered from the passage is bizarre and very dreamlike, perhaps chiefly because it is an excerpt from a novel or a larger literary work. Upon further analysis, the passage develops an eerily violent tone. The events appear to take place in the home of Dieter Bethge, during a stormy night while he is sleeping. 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