Solow Growth Model

Solow model †how well it holds in reality? Arranged by:- Amol Rattan (75013) Introduction Prior to Solow Model, Harrod Domar model had indicated how the reserve funds rate could assume a pivotal job in deciding the Long run pace of Growth. Solow model anyway demonstrated an outcome that was in opposition to what Harrod Domar model had anticipated. It demonstrated that investment funds has just level impact on pay and the development pace of salary relies on the pace of productivity or specialized advancement in the nation. Solow Model depends on specific suppositions 1. There are consistent comes back to Scale(CRS) 2.The creation work is standard neoclassical creation work with unavoidable losses to factor 3. The business sectors are totally serious 4. Families spare at a consistent investment funds rate ‘s’ Equilibrium in Solow Model is characterized as the consistent state level of capital where the economy develops at a steady rate. By accepting that the two vari ables of creation are capital and work per effectiveness unit, it very well may be indicated that investment funds just influences the degree of per capita salary. It is just the pace of development of effectiveness which decides the pace of development of per capita output.For creation work: Y= K? L1-? Consistent state esteems are: y†¢=[s/? +? +n]? /1-? k†¢ =[s/? +? +n]1/1-? Target I) To discover how evident the consequence of assembly of Solow model holds for an example of nations of the world ii) Test Solow model for India for the period 1990-2008 Methodology I) To discover how obvious the aftereffect of combination of Solow model holds for an example of nations of the world †¢ To demonstrate: Convergence result Solow model predicts that all countries with same parameter of reserve funds rate, populace development rate and deterioration rate will all develop at a similar rate in long run.This suggests A) The rich nations (characterized as those at significant level of pay) will develop at a lower rate B) The poor nations will develop at a quicker rate These conditions imply that poor people nations can find the rich nations over the long haul. †¢ Test of assembly Regression We test the connection ln(rate of development of y) = ? + ? ln(initial estimation of y) Conditions An and B infer that the coefficient ? should be negative Result: For an example of 23 nations for period 1990-2008 we discover: 1) the estimation of ? = - 0. 377451859 ) I t is profoundly critical as the likelihood value(pvalue) is near zero 3) The connection of ln pace of development of per capita pay over the period with beginning salary is negative 4) % of information development of pace of development is clarified by the underlying degree of pay. It bodes well likewise as pace of development depends on the underlying degree of pay as well as different elements like training, R&D, and so forth Standard deviation We test how standard deviation of relative salaries (comparative with US) of the nations changes after some time. Assembly infers that pay of nations become increasingly more equal.So we anticipate that standard deviations should diminish after some time. Result: Standard deviation falls after some time for the example of nations suggesting assembly Caveats The outcomes that we get are predictable with the hypothetical outcomes. Anyway the vast majority of the exact work that has been done on Solow Model has demonstrated the contrary outcome I. e. unqualified combination isn't believed to hold. The explanation behind this could the examining blunder. We have to take a bigger informational index to test it again before tolerating. ii) Test Solow model for India for the period 1990-2008Solow model gives us the consistent state estimation of per capita salary as y†¢=[s/? +? +n]? /1-? Taking log on the two sides ln y†¢= (? /1-? )ln(s) †(? /1-? )ln(? +? +n) We gauge this condition for India for the period 1990-2008 A priori hypothesis reveals to us that o The indications of ln s and ln (n+ ? +? ) ought to be inverse o The indication of ln s should be sure suggesting a positive effect of investment funds on level of per capita salary o The indication of populace development increment in proficiency and devaluation should be negative as they lead to disintegration of capital stock per capita.Result: 1. The signs are according to the desires. Reserve funds have surely positively affected the degree of per capita salary. The coefficient of sparing is noteworthy at 5 % level of noteworthiness 2. The indication of n +? +? is negative true to form. In spite of the fact that the estimation of the coefficient is little. It is difficult to accept that 1 % expansion in populace development rate or deterioration rate or proficiency diminishes per capita degree of yield by only 0. 3 %. Also, this term isn't critical. 3.The explanation could again be because of the way that expansion in use on training has been tak en an intermediary for expanding productivity. Maybe development pace of use is certainly not a decent intermediary and along these lines we get such outcomes. End Thus the two tests that we have taken demonstrate a portion of the consequences of the Solow model yet not all. Reserve funds do positively affect per capita degree of salary and assembly appears to exist for the arrangement of nations that we have taken. SOURCE 1. http://information. un. organization/2. http://databank. worldbank. organization/3. http://www. oecd. organization/

English Is Fun

As urban communities become greater and vehicles more affordable, the quantities of autos out and about are probably going to expand, intensifying the issue of traffic clog. As more individuals move to the edge of town and urban communities, traffic blockage may deteriorate. Numerous individuals will drive their vehicles into the downtown area to get work. To address this, legislatures need to guarantee that there are less vehicles on the streets, however people must do their part on the side of authentic measures. There are three different ways to diminish traffic clog which is by improving the street foundation, vehicle pooling and mindfulness campaign.The first way that is reasonable to make a move is by improving the street framework. For this situation, the administration should partake which is they need to fabricated an elective ways or street. This is on the grounds that there are numerous individuals that utilized a similar street in consistently particularly in a major city . By including the elective street, the client can pick both of street that they need to utilize. It can cause the street to turn out to be less packed and the traffic blockage can be diminished. Other than that, more extensive the size of line at the street. For instance, from two line become three line.When the streets are expanded, all the vehicle can move easily. Improving the street foundation can assist with lessening the traffic congestion’s issue in a major urban communities. Furthermore, the approaches to diminish traffic blockage is carpooling or imparting vehicle to companion. No one gets a kick out of the chance to sit in rush hour gridlock. Via vehicle pooling, you’re doing your part to lessen the quantity of vehicles out and about. The more individuals who settle on that decision, the less traffic clog there will be. Individuals in enormous urban areas like Kuala Lumpur is more incline toward utilizing their own car.Imagine that if there are have 50 000 i ndividuals, it is mean there are have 50 000 vehicle or transport out and about. It will influence the terrible issue out and about like traffic blockage. In the event that we offering vehicle to companions or carpooling, it will diminish a measure of vehicle or transport out and about and can decrease this issue. Ensure during we are sharing vehicle, we should to most extreme individuals in any event 4 until 5 man in vehicle or more than one dependent on sort of vehicle. Other than that, with utilizing this other option, the time won't squandering and furthermore decline the air contamination on the grounds that there are a couple of vehicle and transport were utilized and produce less of smoke.Take for instance, we are going to work by imparting vehicle to our neighbors and companions, so the traffic blockage issue would we be able to maintain a strategic distance from on the grounds that solitary a couple of them are use vehicle. In this way, carpooling or imparting vehicle to co mpanion is the best approach to lessen traffic blockage. One of the best approach to unravel the traffic blockage is to compose the mindfulness battle. A congested driving conditions may cause individuals burn through a ton of time if the condition is most noticeably awful and in the long run wound up with late to work or to class. Along these lines, is significant for society to place at the top of the priority list that to design their time when they got out successfully to stay away from by stalling out in the center in the road.A specialist ought to decide to go to prior or stroll to the working environment if conceivable. All in all, improving the street foundation, vehicle pooling and mindfulness crusade are the three different ways to diminish the traffic congestion’s issue in the large urban communities. Just by the blend of government arrangement and the acknowledgment by people of the obligation regarding the issues identified with the expanding number of vehicles i n urban areas, can assist with lessening this issue from keep occur. It is when people make a pledge to change that strategy measures can be successfully actualized. English Is Fun As urban communities become greater and vehicles more affordable, the quantities of autos out and about are probably going to expand, intensifying the issue of traffic clog. As more individuals move to the edge of town and urban communities, traffic clog may deteriorate. Numerous individuals will drive their vehicles into the downtown area to get work. To address this, administrations need to guarantee that there are less vehicles on the streets, yet people must do their part on the side of authentic measures. There are three different ways to diminish traffic clog which is by improving the street foundation, vehicle pooling and mindfulness campaign.The first way that is appropriate to make a move is by improving the street framework. For this situation, the administration should participate which is they need to fabricated an elective ways or street. This is on the grounds that there are numerous individuals that utilized a similar street in consistently particularly in a major city . By including the elective street, the client can pick both of street that they need to utilize. It can cause the street to turn out to be less packed and the traffic clog can be diminished. Other than that, more extensive the size of line at the street. For instance, from two line become three line.When the streets are expanded, all the vehicle can move easily. Improving the street foundation can assist with lessening the traffic congestion’s issue in a major urban areas. Also, the approaches to decrease traffic clog is carpooling or offering vehicle to companion. No one gets a kick out of the chance to sit in rush hour gridlock. Via vehicle pooling, you’re doing your part to decrease the quantity of vehicles out and about. The more individuals who settle on that decision, the less traffic clog there will be. Individuals in enormous urban areas like Kuala Lumpur is more lean toward utilizing their own car.Imagine that if there are have 50 000 individuals, it is mean there are have 50 000 vehicle or transport out and about. It will influence the awful issue out and about like traffic clog. In the event that we offering vehicle to companions or carpooling, it will diminish a measure of vehicle or transport out and about and can lessen this issue. Ensure during we are sharing vehicle, we should to most extreme individuals in any event 4 until 5 man in vehicle or more than one dependent on sort of vehicle. Other than that, with utilizing this other option, the time won't squandering and furthermore decline the air contamination in light of the fact that there are a couple of vehicle and transport were utilized and produce less of smoke.Take for instance, we are going to work by offering vehicle to our neighbors and companions, so the traffic clog issue would we be able to keep away from on the grounds that solitary a couple of them are use vehicle. In this way, carpooling or offering vehicle to companion is the best approach to diminish traffic blo ckage. One of the best approach to settle the traffic clog is to compose the mindfulness crusade. A road turned parking lot may cause individuals burn through a great deal of time if the condition is most noticeably terrible and in the end wound up with late to work or to class. Along these lines, is significant for society to place as a top priority that to design their time when they got out successfully to keep away from by stalling out in the center in the road.A specialist ought to decide to go to prior or stroll to the working environment if conceivable. Taking everything into account, improving the street framework, vehicle pooling and mindfulness crusade are the three different ways to diminish the traffic congestion’s issue in the large urban areas. Just by the blend of government approach and the acknowledgment by people of the duty regarding the issues identified with the expanding number of vehicles in urban areas, can assist with diminishing this issue from keep occur. It is when people make a promise to change that approach measures can be adequately executed.

Marketing and Customer Engagement Price of Tesla Model

Question: Portray about the Marketing and Customer Engagement for Price of Tesla Model. Answer: Advertising Plan Assessment: Tesla Model 3 Tesla Motors is a built up brand name in the market of electronic vehicle and is known to be a pioneer in development. The brand Tesla isn't generally known in Singapore and not many residents of the nation think about it. The cost of Tesla Model 3 expense about US$ 35,000 and dependent on the conversion standard of Singapore Dollars, it would be around S$47,000 as the base value (Tesla.com, 2016). Counting the assessments like GST, extract obligation and extra enrollment charge, the vehicle would cost about S$ 118,000 in Singapore. No seller of Tesla has been thought to be in Singapore while assessing the cost of the vehicle and including one would additionally raise the tag to up to S$ 135,000, including the vendor edge (Channel NewsAsia.com, 2016). Thinking about these components, this task intends to structure a promoting plan for Tesla Model 3 to be propelled in Singapore and a SWOT examination will be performed for the equivalent. Client Behavior Analysis Considering our severe financial plan of $ 50,000, we will start with the client conduct examination as it assumes a significant job in deciding the eventual fate of the vehicle in the market. In spite of the fact that Tesla 3 has been pronounced as a reasonable model by the creators, considering its appearance cost in Singapore, it very well may be known as an extravagance vehicle in the market as the cost is in arrangement with the Mercedes-Benz A-Class vehicles. In this manner, the customer conduct for extravagance vehicles in Singapore is significant as they purchase an image of societal position, yet in addition the unmatched experience of possession that is inaccessible for the vehicle purchasers of the mass market (Winter Heil, 2016). The portion of the extravagance vehicle showcase in Singapore is expanding with the expanding moderateness of the financing choices and the individuals getting more extravagant. Extravagance vehicles are getting close enough for some who wanted to claim an extravagance vehicle since quite a while. Existing clients of extravagance vehicles must be considered as after the dispatch of the model, many will switch marks as it will be simple absent a lot of entrenchment of the loyalties (Atwal, 2014). The worldwide vehicle advertise is characteristic of the way that the general understanding of the client matters the most and the administration delighted in by him ought to be customized and really unique for remembering him for the economic wellbeing that is appreciated by him. In this manner, while structuring the showcasing plan, the consumer loyalty angle must be viewed as that incorporates easy to understand alternatives for the web purchasers. Thinking about the CEVS (Carbon Emissions Vehicle Scheme), Tesla 3 is a vitality effective and condition inviting vehicle and is qualified for a greatest markdown of S$30,000 (Woo, 2015). That doesn't fundamentally change its fragment of extravagance vehicles yet makes it more reasonable for the ones, who want to claim an extravagance vehicle with the help of money related plans. 93% of the purchasers of the extravagance vehicles in Singapore decide to fund their car with the certainty of their continued intensity of procuring in future. This pattern of the client conduct can augment the market for Tesla 3 is arrangement with the administration approach for the refund (Melo, Beng Massier, 2014). The customers of extravagance vehicles in Singapore needs to pay an overwhelming arrangement for the enrollment and extract obligations that reaches out up to 150% of the market estimation of the vehicle. What's more, the administration approaches like COE (Certificates of Entitlement) will in general increment the vehicle cost to about S$ 30,000 higher (Lta.gov.sg, 2016). Considering 95% of the Singaporean families are white collar class, the advertising plan should target including them too separated from the more extravagant families to expand the market of Tesla 3 by giving out simple monetary help with the type of credits and simple regularly scheduled payments. The purchasers of extravagance vehicles pay special mind to the exceptional needs and basic products in the vehicle (Chow Dula, 2015). While some post for the basics like pull, quickening rate and most extreme speed, others pay special mind to the exceptional need like the brand or the nation of starting point of the bra nd. Tesla 3 will have the option to fulfill both the kinds of purchasers in Singapore as positioned 5 comprehensively in the vehicle brand and is an amazing accomplishment inferable from its item quality and advertising procedures. This factor will assist with smoothing the dispatch of Tesla 3 the same number of the potential purchasers would be prepared to put in a couple of additional dollars for claiming a world class item in Singapore. SWOT Analysis SWOT examination is an organized arranging strategy utilized for assessing the four components of an undertaking or a task. The four components incorporate qualities, dangers, openings and shortcomings and it is completed for an individual, industry, item, place or an organization (Kwok et al., 2013). The SWOT examination of Tesla 3 in Singapore will give a visual diagram of the circumstance and quality of the market guideline of extravagance vehicles in Singapore preceding the dispatch of the vehicle. Table 1: SWOT examination of Singapore showcase guideline of extravagance vehicles Qualities Low political brutality and fear based oppression Simple for beginning new business More grounded capacity of utilization Great condition of business Shortcomings Restricted island size Visit inclusion of government Worldwide direction Openings The travel industry preferring nation Remote extension and developing markets Less expensive business costs Expanded terrains Dangers Multi lingual country Rising degrees of ocean Fragmented gracefully chai Qualities Singapore is a nation with a quiet world of politics with no danger of wars. Tesla can undoubtedly dispatch its model 3 in such a domain and spotlight on the venture for the development of the business. The per capita salary of the nation is expanding and this can help to robe in the working class individuals in the extravagance vehicles section, in this manner expanding the market for the vehicle. The guidelines for beginning another business in Singapore are simple and the enlistment should be possible on the web (Sundarakani, De Souza Goh, 2012). Singapore has a place with the class of high salary and positioned high in the business points which is a facilitator for the business profile of Tesla 3. Shortcomings Since the island of Singapore is little, the market for Tesla is likewise limited. The legislature of Singapore presents steady intercession which is destructive to the business speculations and hampers the market by forcing exacting systems and guidelines for directing business. Since the monetary development of the nation is send out arranged, in this way, the market of Tesla will be vacillated by the worldwide business natural changes (Sundarakani, De Souza Goh, 2012). The financial development may get turned around if the created countries are seriously influenced and this may continuously influence the matter of Tesla 3. Openings Since Singapore is a travel industry based nation, purchasers can be normal from outside nations too separated from the commercial chances. Business changes and territories are expanding in Singapore which will build the showcasing chances of Tesla in the nation. The business cost in the nation is less expensive when contrasted with the other neighboring nations and this will add to the net revenue of the organization (Sundarakani, De Souza Goh, 2012). Settling the questions of land with Indonesia and Malaysia will expand the domain of Singapore and in this manner, increment the market of Tesla 3. Dangers Since Singapore has four distinctive authority dialects, in this manner the promoting of Tesla 3 must be done in four unique dialects to draw in clients from all sections or, more than likely they will get overlooked. The ocean level is rising all inclusive and this will die a significant number of the islands and make them pointless (Sundarakani, De Souza Goh, 2012). This will additionally diminish the land assets which are as of now constrained and decrease the market for Tesla 3. The gracefully chain of Singapore isn't completely evolved and the parts for Tesla 3 must be imported for after deals administration as the nation is subject to import of the crude materials as opposed to assembling. This will influence the net revenue of the organization over the long haul. With a severe financial plan, the favored market plan can be on the web and media promoting. Before the promoting, a study can be directed to think about the potential clients for Tesla 3 and help for the notice of the vehicle. The ecological benevolent arrangement of the administration will additionally help in the advancement of the electric vehicle in the island nation. References Atwal, G. (2014).Luxury brands in developing markets. Springer. Authentication of Entitlement (COE) | Vehicle Quota System | Owning a Vehicle | Roads Motoring | Land Transport Authority. (2016).Lta.gov.sg. Recovered 4 September 2016, from https://www.lta.gov.sg/content/ltaweb/en/streets and-motoring/possessing a-vehicle/vehicle-standard framework/declaration of-privilege coe.html Chow, C., Dula, C. (2015). Kheng Keng Auto: A Global Business Selling Scrapped Cars and Car Parts from Singapore. Kwok, H. Y., Low, Y. P., Tong, G. Q. H., Lee, M. K. Y., Yong, J. Y. P. (2013). SWOT investigation of oceanic Singapore. Melo, D. F. R., Beng, G. H., Massier, T. (2014). Charging of electric vehicles and request reaction the board in a Singaporean vehicle leave. InPower Engineering Conference (UPEC), 2014 49th International Universities(pp. 1-6). IEEE. Model 3 | Tesla. (2016).Tesla.com. Recovered 4 September 2016, from https://www.tesla.com/model3 New Tesla 3 could get greatest CEVS refund of S$30,000: Khaw. (2016).Channel NewsAsia. Recovered 4 September 2016, from https://www.channelnewsasia.com/news/singapore/new-tesla-3-could-get/2770054.html Sundarakani, B., De Souza, R., Goh, M. (2012). A Case Study of Singapores Automotive Supply Chain: Preliminary Analysis and Findings.Cases on Supply Chain and Distribution Management: Issues and Principles: Issues and Principles, 200. Winter, J.,

Knights And Chivalry Essay -- essays research papers fc

KNIGHTS AND CHIVALRY Knights were a huge piece of the Middle Ages. A ton people imagine that knights are warriors who were canvassed in metal, and battled mythical serpents and underhandedness individuals. In spite of the fact that they were warriors, or troopers, knights never battled mythical serpents. Knights battled for their ruler or master since land was guaranteed to them. To turn into a knight you must be brought into the world a respectable kid and begin preparing at age seven. The young men didn't go to class since he was sent to live with another respectable family as a page. A page figured out how to function with ponies and weapons. He likewise learned habits and to be amenable. He got things done for the honorable family. At age 14 a page turned into an assistant to a knight. As an assistant you needed to serve the knight. By watching the knight the assistant figured out how to battle and utilize the weapons to reinforce his body. The assistant needed to do numerous things with the knight. On the off chance that the knight needed to go into fight the assistant needed to go as well. At the point when the knight got injured the assistant fixed his injuries. On the off chance that the knight was in peril the assistant safeguarded him, and if the knight kicked the bucket the assistant would arrangement a legitimate internment. An assistant figured out how to make and serve dinners and was the knight's very own hireling. On the assistant's 21st birthday his abilities would make him a knight. His abilities were tried during competitions. There was a function for the assistant when he was prepared to turn into a knight. On the night prior to the function the assistant washed and put on exceptional garments. He asked alone in a congregation with his weapons. The following day t...

What to Make of The Financial Times 2014 Global MBA Rankings

The Financial Times released its 2014 global MBA rankings! Read on for the list, the facts, the analysis, and the sources. The List: 2014 Rank 3  Year (Avg)   School Country   1 1 Harvard Business School USA 2 2 Stanford Graduate School of Business USA 3 4 London Business School UK 4 3 U Penn Wharton USA 5 5 Columbia Business School USA 6 6 INSEAD France/Singapore 7 8 IESE Business School Spain 8 8 MIT Sloan USA 9 10 Chicago Booth USA 10 15 Yale School of Management USA 11 12 UC Berkeley Haas USA 12 15 IMD Switzerland 13 11 IE Business School Spain 14 11 Hong Kong UST Business School China 15 15 Northwestern Kellogg USA 16 19 Cambridge Judge UK 17 17 Duke Fuqua USA 17 18 NYU Stern USA 17 19 CEIBS China 20 18 Dartmouth Tuck USA To truly understand the rankings, much less use them, please see the methodology so you’ll know what’s being ranked. While there are twenty factors considered in the FT rankings, the FT methodology puts the most weight on increase in salary in $US PPP (Purchasing Power Parity) and weighted salary in $US PPP. Poets and Quants criticizes the FT rankings for absurd results in calculating â€Å"Value for Money† as well as for having too many criteria and several criteria that really don’t reflect the quality of education. Others say that it is biased against U.S. programs. Regardless of the criticism’s validity, the FT ranking is arguably the most cited ranking of global programs because it compares U.S. and international programs in one ranking and seems to do a better job of it than the alternatives. That prominence doesn’t mean these rankings are Gospel. It does mean you have a lot of data in a format where you can easily compare MBA programs from around the world on designated criteria. The Facts: Here are some fun facts about FT’s 2014 rankings: †¢Ã‚  7 of the top 10 and 12 of the top 20 programs ranked are US schools. †¢Ã‚  Big jumpers this year include Boston University’s business school and Washington Forster, which each jumped 20 spots, to 75th and 58th place, respectively. Another big US jumper this year was USC Marshall which jumped 17 spots to 65th place. UNC Kenan Flagler jumped up 12 slots this year from its 3-year average rank, moving from #45 to #33. †¢Ã‚  The biggest losers this year include Dublin’s Smurfit School (dropped 27 spots to 91st place) and Vlerick Business School (fell 16 places to 100th place), as well as the schools which disappeared off the list entirely: U of Iowa’s Tippie School (74th last year), Korea University Business School (86th last year), Incae Business School in Costa Rica (90th last year), Case Western’s Weatherhead School (94th last year), and others. †¢Ã‚  Newcomers to the list include: UC Davis (98th), Wake Forest (94th), BYU’s Marriott School (93rd), and ESMT European School of Management and Technology in Germany (89th). †¢Ã‚  In terms of geographic representation, the top 20 schools are all in the US, UK, Europe (France, Spain, Switzerland), China, and Singapore, but further down the list, other countries gain their spots: India comes in at 30th place with the Indian Institute of Management in Ahmedabad; SDA Bocconi in 31st place represents Italy; South Korea appears in 45th place with Sungkyunkwan University’s GSB; Canada’s first school on the list is Toronto Rotman at 51st place; Portugal follows with The Lisbon MBA in 52nd place (new to list); South Africa’s U. of Cape Town GSB comes in at 59th place; in the 62nd slot we have Australia’s Australian Graduate School of Management; and Brazil’s Coppead is in 79th place. †¢Ã‚  Ã‚  The city with the highest concentration of schools in the top 100 is (of course) Boston with six top b-schools – Harvard (1), MIT Sloan (8), Hult International Business School (61), BU School of Management (75), Boston College Carroll (82), and Babson Olin (95). The Analysis: While it’s fun to look at the changes – who climbed and who sank – for me the real lessons from this ranking are: 1.  The top programs move and change very slowly. That lack of drama in these rankings is a better reflection of reality than the gyrations one sees outside the top twenty. Significant change takes time so sharp jumps and dives probably mean nothing. Sustained change in ranking has greater credibility – if you value the same qualities as the FT. 2.  The one point made repeatedly in the commentary on this ranking, and it is the same conclusion I draw from both the FT ranking and the Forbes ranking, which both emphasize ROI and increase in salary, is this: The MBA education at top programs provides a solid return on investment for most students. The MBAs surveyed for the FT rankings started their MBA in 2008, just as the Great Recession hit, and graduated in 2010. These MBAs still report on average a 100% increase in salary over what they were making before they started business school. There are obviously critics of graduate business education, specifically the MBA, and those detractors either believe an MBA isn’t valuable or that the value has declined. I agree with the latter group. However, the questions for today’s applicants are: 1.  Ã¢â‚¬Å"Given my current professional background and salary and my anticipated salary after I earn an MBA, do the anticipated financial rewards plus increased job satisfaction justify the investment (both out of pocket and opportunity costs)?† The fact that those entering b-school ten or twenty years ago could anticipate a higher ROI is irrelevant. It is merely a historical curiosity and for you an unfortunate one. 2.  Ã¢â‚¬Å"Is the full-time MBA – or whatever flavor you are considering – the optimal way for me to attain my MBA goals?† FT, to its credit, also has an article on those claiming the MBA is not worth the effort. Sometimes they are right. Each one of you individually needs to examine your circumstances and goals to see if for you the MBA is an expensive waste of time and effort, or if for you it is likely to be worth both. Clearly, most of the people surveyed by Forbes, the Financial Times, and GMAC are in the latter group. In this video   Della Bradshaw, FT’s Business Education Editor, discusses the results of this year’s FT Global MBA rankings including the finding that MBAs in the class of 2010 are now enjoying salaries double those they were earning before they entered b-school. The Sources †¢Ã‚  FT Global MBA Ranking 2014 †¢Ã‚  Ã‚  FT: MBA Ranking 2014: Key Methodology †¢Ã‚  Ã‚  FT: Big Names Dominate FT MBA Ranking Top Spots †¢Ã‚  Ã‚  PQ: Winners Losers in 2014 FT MBA Ranking †¢Ã‚  Ã‚  Accepted: 4 Ways You Should NOT Use the MBA Rankings †¢Ã‚  Ã‚  Accepted: MBA Rankings: What You Need to Know By Linda Abraham, president and founder of Accepted.com and co-author of the new, definitive book on MBA admissions, MBA Admission for Smarties: The No-Nonsense Guide to Acceptance at Top Business Schools.

The Magic of Cinema Fate and Free Will in Stranger Than Fiction - Literature Essay Samples

The medium of film has no limits, showcasing engaging characters, captivating story, and being able to manipulate an audience’s emotions towards a specific theme explored, to the point that us as an audience are aware of the manipulation in the film. This is seen in Marc Forster’s ‘Stranger Than Fiction’, where he incorporates language and film techniques in the film to engage and manipulate the audience’s emotions towards the key theme of fate or free will. In the opening scene, we are introduced to a â€Å"story about a man named Harold Crick, and his wristwatch†, through narration, confirming that the protagonist, Harold, is within a narrative, unknowingly a part of a chain of events, thereby establishing his character as a symbol of fate. The motif of duty and routine, as symbolized by Harold’s wristwatch, is introduced through a close-up, with the watch sitting on Harold’s bedside table. â€Å"Every weekday, for twelve years, Harold would brush each of his thirty-two teeth, seventy-six times†, conveys Harold’s life as being ruled by routine, and manipulates us as an audience to feel sympathetic towards his character. The depiction of an uneventful life through his importance of numbers is conveyed through an over-the-shoulder shot, where we see he is browsing a magazine on calculators, and the use of digital and mathematical imagery showing patterns, mathematics, ratios etc. This shows Harold’s thinking process, and manipulates the audience to feel discouraged about his life ruled by numbers, routine, and fate. Finally, Harold is revealed to, â€Å"live a life of solitude. He would walk home alone, he would eat alone, and at precisely eleven-thirteen PM every night, Harold would go to bed alone.† This again manipulates the audience to feel sympathy for Harold, having been introduced as a symbol of fate with no real purpose in life besides his job, numbers and routine. The opposite of Harold, and fate, is introduced in a following scene as Ana Pascal, who is presented as a symbol of free will through her charitable and independent nature, being socially aware, and most importantly her occupation as a baker, with her baking and cookies being a symbol for love. In her introduction, she is being audited by Harold, failing to pay her taxes because of personal beliefs, and immediately both characters are represented as polar opposites. Her aggressive nature towards Harold is shown through her angrily shouting, â€Å"Taxman†, showing her disgust towards government and hierarchy. Her rebellious views towards tax, and the amount spent on military, are clear when she states, â€Å"I didn’t steal from the government; I just didn’t pay you entirely.† Harold argues that she can’t â€Å"not pay your taxes†, but Ana simply responds, â€Å"Yes, I can.† Her views are most powerfully expressed when Harold asks whethe r she is part of an anarchist group, with her asking, â€Å"Anarchists have a group? Do they assemble? Wouldn’t that completely defeat the purpose.† This use of dialogue, rhetorical question and irony compares the government to an anarchist group, and shows Ana’s personal views. Forster’s characterisation of Ana immediately manipulates the audience to be fond of her due to her independent, fun and friendly personality, while being able to connect with the general audience in regards to her social views, and manipulates the audience to be supportive of free will. Following introducing the symbols of fate and free will, Forster experiments by showing both working cohesively, which is seen when Harold makes a move on Ana, due to his growing feelings towards her. Forster uses the romantic film clichà © ironically, with Harold professing he brought Ana, â€Å"Flours. I brought you flours.† This clever play on words creates a beautiful moment shared between the two, manipulating the audience to feel supportive of the characters. Forster’s choice of using silence in the background, mid-shots, two-person mid-shots, pairing angles and slow editing helps depict the scene as very intimate. When Ana states that there’s rules against a possible relationship, Harold tells her that he â€Å"doesn’t care†, â€Å"because I want you.† Forster’s use of techniques and dialogue manipulates the audience into supporting the relationship, feeling emotions of awe, romance, and warm satisfaction, while also connecting to the key theme of fate or free will, with Forster ultimately manipulating the audience into supporting his idea that fate and free will can work together. In the climax, rather than presenting his concept of fate or free will physically through symbolism, Forster presents them philosophically. He uses pairing, cross-cutting editing and narration to show Ana waking up, Karen writing the protagonist’s final fate, and Harold walking towards the bus stop, while Karen’s voice informs us of Harold’s last living moments as they play out. This manipulates the audience into feeling worried for Harold, due to the building suspense, and makes the audience expect Harold’s fate to come true. The motif of the watch, symbolising duty and routine, returns in this scene through the use of a quick close-up, with Harold using it to shield himself from the impact of the bus. The key part of this scene occurs when the boy on the bike falls onto the street, with Harold sacrificing himself to save him, thereby accepting his fate. When Harold accepts his fate, however, he immediately makes his own decision, and thus exercises free will, due to Harold knowing his fate prior to it occurring. With this, Forster shows to us that it is eventually his watch, but more importantly, free will and fate, that saves Harold, manipulating the audience to accept that fate and free will work together, as without one or the other, Harold would not have survived. The true wonder of cinema is being able to control an audience’s emotions and mood towards characters, key themes and social issues, which is exercised by Forster in the specific sequences from ‘Stranger Than Fiction.’ Forster’s idea of fate or free will is cleverly explored in particular through symbolism of Harold and Ana, and it is through their characterisation that the audience are manipulated to support them, as well as the key theme. Forster has expressed his clear and wondrous ideas on fate and free will in the film, and shows how simple it is to manipulate an audience’s emotions, to the point that we are personally aware of it, and accept without hesitation.

Information Security And Controls Director At A Publicly...

Numerous concurrent activities and fluctuating priorities Suzanna is the Security and Controls Director at a publicly traded hospital system. As is typical for someone in this type of role, she’s juggling numerous concurrent information security and compliance objectives. †¢ Next quarter the annual SOX audit begins, although remediation of findings from the prior year’s internal audit report is still in progress. †¢ Results from this quarter’s external network vulnerability scans are in her in-box; a quick peek at the report tells her that numerous risks are flagged as â€Å"high priority†. †¢ The VP of Application Development‘s pet project is an internally developed Lab Information System that goes live next quarter and his entire team is laser-focused on this objective. Consequently, this department hasn’t competed a thorough privileged access entitlements review since last year. †¢ Today she learns, on one day’s notice, that the College of American Pathologists (CAP) will be onsite for the annual laboratory accreditation audit. She’ll need to provide a copy of each security policy and address any questions raised by the auditor. †¢ Two executive laptops and a USB thumb drive are reported stolen from a rental car in Charlotte. The laptops were password-protected, but the thumb drive was not. How does Suzanna decide what to work on Monday morning given all the work generating activities? Remediation prioritization is often driven by squeaky wheel escalation, internalShow MoreRelatedSecurity And Controls Director At A Publicly Traded Hospital System880 Words   |  4 PagesIT Leaders have numerous concurrent activities and fluctuating priorities Suzanna is the Security and Controls Director at a publicly traded hospital system. 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In the ï ¬ nal analysis, however, the law cannot protect creditors against limited companies that are not credit worthy. All it can do is to ensure that companies ‘disclose’ sufï ¬ cient information to enable alert creditorsRead MoreDomino Pizza 2013 10k83576 Words   |  335 PagesUNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) x|ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934| For the fiscal year ended December 30, 2012 or |TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934| Commission File Number 001-32242 Domino’?s Pizza, Inc. 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The Canadian Culture Essay - 919 Words

Culture can be defined as the behaviours and belief characteristics of a particular social, ethnic, or age group. Every country has its own special way of life. Canada’s in particular can be considered unique because Canada is a cultural mosaic, which allows elements of many cultures to be integrated into one. Canada’s culture has many influences because the numerous people who immigrate here are encouraged to keep their culture. These immigrants also teach the people they meet when they move here about their own ways of life. Canada has a culture that is made up of many because of all the immigration, and openness to culture that the country possesses. At different times throughout history, people have†¦show more content†¦When Canada became its own Canadian culture p2 country, the identity became separate from the UK. Although there were still British colonies, people were free to start developing their own identity. The Canadian government policy has predominantly been one of peace-keeping. In the 1960s the United States started to become more violent, and Canada remained peaceful, people looked to Canada as a place to get away from violence (â€Å"Canada in the 19th†, 2009). Canada is known worldwide for being peaceful, and is recognized for its peacekeeping efforts in war zones. â€Å"Canada is of a handful of nations to which the United Nations can regularly turn to obtain peacekeeping advice and expert peacekeepers.† (â€Å"Canada Peacekeeping†, 1999) The word peace keeping was invented by the fourteenth Canadian Prime Minister, Lester B. Pearson during the Suez crisis of 1956, for which he was later awarded the Nobel Peace Prize. The geography of Canada affects our culture considerably. Canada is located north of the United States, occupying most of northern America. It is the second largest country in the world. Canadians take pride in this fact. Firstly, the climate affects what we wear. In the north most parts of Canada, thick coats and parkas are a necessity, along with mittens, and thick hats, or toques, in Canadian slang in warmer, southern parts of Canada we must prepare forShow MoreRelatedThe On The Canadian Culture899 Words   |  4 Pagesexperience. Based on what I heard during the meeting, and from friends of mine who have been on the trip previously, it is a very worthwhile learning opportunity to practice French conversation skills, study Quebec history, and become immersed in the Canadian culture. They presented a Powerpoint and made a video about their trip, which made it more interactive and enjoyable. They are looking into ways to make this trip more efficient, however. I certainly advocate for the continuation of this trip and believeRead MoreCanadian Culture Essay976 Words   |  4 PagesThe way Canadian culture is perceived is different for everyone. Too some we are stereotypical flannel wearing Canadians, to others we are just like any other person from around the world. I like to think of Canadian culture as a welcoming, polite, quietly patriotic, multicultural and a safe society where we are free to express ourselves. Furthermore, I wanted to find out what Canadians think of the culture we have developed over the past 250 years. Too find out what Canadian culture is to othersRead MoreCanadian Culture Essay1408 Words   |  6 Pagesothers perceive them as a culture. Canada is a provocative country with a divergent population. Each individual culture brings a meaningful element of intangibility that sets us apart as one of the most interesting and exclusive places to live in the entire world. Canadas identity spurs from its original founding people; The French, English and Aboriginals. To understand Canada is to understand the history and culture of each people to know what it truly means to be Canadian. 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The Canadian culture has integrated with other countries forming a successful globalization. Many countries including the United States have contributed to the success in Canada’s media industries. The success of globalization between all of the countries was predicted by Marshall McLuhan and ever since his prediction, the world ca n be depicted as a global village. The global village can be viewed as a tool, a tool that is

Leonardo Da Vinci The Most Influential Artiest Of The...

Leonardo da Vinci is arguably the most influential artiest of the Renaissance. Leonardo’s work has managed to survive the test of time, and inspire generations of people. Though Leonardo past long ago, his determination, skill, and influence has managed to make him into the most iconic artist of the Renaissance. Such works that made Leonardo into the icon he is known for today are the Mona Lisa and The Last Supper. The Mona Lisa depicts a woman smiling, this painting has become famous world wide for its appeal to all generations. The Last supper depicts a scene of what many would think that the last supper Jesus had the night before his crucifixion. It shows Jesus and his twelve disciples enjoying the meal together, along with many hidden signs of symbolism. Leonardo da Vinci was born on April 15, 1452 in Vinci Italy. Leonardo was always concerned with science and nature, using these influences in this painting, sculpture, drafting, and inventions (Leonardo di ser Piero da Vin ci. 1). Leonardo lacked any formal education, he only knew basic math, writing, and language skill. Even with his lack of education Leonardo’s father recognized his natural talent for artistry and nurtured his skills. Leonardo studied the Mechanical arts as well as contained his passion in the arts. At the age of 20 Leonardo was offered to join the painters guild in Florence but declined so that he could continue his work with Verrocchio until he became a master painter in 1478 (History.com 1).

Band of Brothers Book Review Essay - 1205 Words

Band of Brothers E Company, 506th Regiment, 101st Airborne: From Normandy to Hitlers Eagles Nest By Stephen Ambrose ISBN 0-671-76922-7 Review by Kevin Campopiano History 382 Prof. Schweizer Band of Brothers is a book chronicalizing the emotions, bonds, tragedies and tactics used by Easy Company in the 506th Regiment of the 101st Airborne which is one of the highest decorated companies from World War II in the United States armed forces. It is written by Stephen Ambrose, a distinguished history professor at the University of New Orleans and noted American historian and biographer. Easy company was involved in almost every major airborne campaign in the European conflicts of World War II, Even so the book heavily covers†¦show more content†¦Stephen Ambrose is a very thorough and methodical writer who goes through great extents to make sure he writes the most accurate and descriptive scenario possible and has shown this through some of his earlier writings such as his highly acclaimed biographies on Richard Nixon and Dwight Eisenhower as well as his historical writings on the American Civil War. In order to prep for writing Band of Brothers, Stephen Ambrose sifted through thousands of World War II era files and combat reports and eyewitness accounts, but more importantly personally interviewed almost every living soldier from Easy Company among others and got their full detailed first hand versions of the stories he was publishing. If you combine this kind of research with Stephen Ambrose’s attention to even the smallest detail you are not only left with one of the most accurate pieces of historical writing I have ever read, but a writing so precise it almost reads like a play. This first becomes evident during the assault on Brecourt Manor when Ambrose is describing the line drive grenade thrown by Lt. Buck Compton. It is described so perfectly you can almost see it happening, and it goes on like this throughout every chapter. It is hard to think that anyone who hasn’t already seen the HBO miniseries version of this book could possibly be picturing anything else, to the point where it is questionableShow MoreRelatedThe s Epic The Odyssey And The Movie O Brother, Where Art Thou?848 Words   |  4 PagesI have watched O’ Brother, Where Art Thou? hundreds of times before taking this class, but until now I had no idea that it was largely based on The Odyssey, by Homer. 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Impact of Employee Engagement on Organization-Samples for Students

Question: Write a research proposal on the topic of Employee Engagement and its impact on the Organisational Performance. Answer: Industry/ Business Background: The Tata Group is built on a foundation of trust and transparency which is the basis of every business which the company is a part of. The group is shaped by a lineage of sound and straightforward business principles. The Tata Group was founded by Jamsetji Tata in the year 1868 and is headquartered in India. The Tata Group is famous as a global business conglomerate that operates in over 100 countries across 5 continents. The Tata Group at present has a strong presence across diverse industries such as automotive, chemicals, construction, finance, consumer products and hospitality. There are 29 publicly listed Tata enterprises which include the Tata Steel, Tata Motors, Tata Consultancy Services, Tata Teleservices, Tata Communications and Indian Hotels. The Tata Projects now expect opportunities in several infrastructure sectors namely civil construction, power generation and transmission, the railways, metals and minerals, water, oil and gas. In addition to this, the company has diversified into urban infrastructure and is one of the fastest growing sectors in the country. The organisation needs to take its profitability to a much higher level in order to improve the cash flow. This is considered as the short term challenge of the company. Consumers face issues due to international competition and also in terms of implementation. Research Objectives and questions: The chosen topic is The impact of employee engagement on organisational performance in Tata Group. Therefore the objective of the research is to understand what is the actual impact or the effect of employee engagement on the ultimate success and the performance of the organisation. Tata group has been the pioneer in providing products and services to the consumers and its plethora of clients all over the world. The research objectives aim to understand the problems which the organisation is facing and work on it. The challenges which the organisation is facing are that of attraction of proper talent and its retention. The research questions aimed at are: Does employee retention prove useful for organisational performance in the long run? Does employee engagement have an impact on employee performance? Is organisational performance affected by the most efficient employees non-retention? Can the organisation successfully retain its employees by proper incentives? The Tata Group performance analysis needs to be studied properly so that it is helpful for answering the research questions and objectives. Research Scope: The scope of the research is to focus on the factors which affect employee satisfaction which impacts the retention of the employees and ultimately the organisational performance. The sense of achievement which comes from appreciation is one of the main factors which needs to be studied and covered under the scope of research. The factors including the monetary benefits, the sense of fairness, the employees feeling of belonging, a mixture of a formal and informal approach as an when necessary, adequate working conditions, credit system, the nature of challenges, the existing safety and security of the job needs to be studied properly. Limitations: The limitations of this particular topic of research is that it is extremely subject specific and cannot be helpful in answering research questions other than those covered in the study. This is due to the fact that the issues are company specific and will not be indicative of the issues in any other company. In case the issues in a particular organisation are applied in case of another organisation it would not be accurate. Thus the research in this case is limited to the study of Tata Group only. The issues of employee satisfaction, the working conditions of the company and the factors which affect the employee performance are taken into consideration. The research does not include any factor which is not linked to the employee performance. Justification of Research: The research needs to be conducted as the issues of the organisation need to be solved at any cost. The Tata Group is one of the most prestigious organisations in the country, India. Therefore it is necessary to solve the issues, the employees need to be retained in order to ensure that the organisation performs and fulfils al the duties it is entitled to complete. In case the contributory factors to employee performance and employee retention are addressed, it helps in the organisational performance as a whole. Unless the issues which plague a particular organisation are solved it is bound to lead to increased number of employee dissatisfaction and hence their resignation. Literature Review: Employee engagement, is a topic of discussion among different researchers. The engagement concept can be defined to be a popular topic as it is related with performance of the organisation. The more efficiently the employees work the more the revenue that will be generated by the company. This is because of the fact that the leaders of an organisation aim to search for a bettered employee performance in the workplace (Akhter and Equbal 2012). The degree to which the employees are motivated for contribution to the success of an establishment, are willing to give requisite effort and accomplish tasks are defined as employee engagement (Mishra, Boynton and Mishra 2014). Engagement is defined as a work related state of mind which is characterised by dedication, vigour and absorption. Engagement is also concerned with a level of emotional involvement (Wang and Hsieh 2013). The concept of emotional involvement depends on how the employees relate to the values of the Tata Company (Vardhan 2015). The same is applicable in case of the intellectual components (Pathak 2015). It is also about people going that extra way and giving extra discretionary effort which they will proudly do for the organisation (Andrew and Sofian 2012). The topic of engagement also includes, quality management, internal supplier relationship, performing to the best of ones ability and helping each other at work (Vardhan 2015). Employee engagement is also concerned with the awareness regarding the business context, the work dynamics with the colleagues and also the peer groups for improvement of the performance within the job for the benefit and ultimate excellence of the organisati on. It is also concerned with a positive employee attitude, towards the company and its values as a whole (Vashishtha 2016). There can be several viewpoints of employment engagement which can be considered from several perspectives. The perception of the employees and their beliefs concerning the organisation and culture come under the cognitive aspect (Vardhan 2015). The degree to which the employees are willing to give proper efforts to the company helps in the determination of the value added benefit to it. All in all the employee engagement is one of the main determining factors in the organisational performance (Gupta and Kumar 2012). Theoretical Framework: The theoretical framework is concerned with identifying factors which contributes to the employee satisfaction in an organisation. (Patten 2016). There are several business models for the human resource management in organisations. There are the hard and soft models, the contextual models involving the importance of social, institutional and political forces and the matching model in context of the organisational strategy. In this connection the 5-Ps model of HRM can be used where the policies, programs, the practices and processes are formulated and implemented for carrying out of the activities. In certain cases application of the contextual model is also appropriate in case of the Tata Group (Vardhan 2015). Research Methodology: The research methodology of the study is aimed at the collection of suitable data and its analysis for the suitability of the study. For the research, data are collected from the Tata Group managers and employees. The nature of the data collected is primary. It is to be collected, in order to understand the employee reactions and their opinions about the workings in the organisation. The primary data is to be collected from the employees and also from the managers of the organisation. The employees need to be interviewed and their responses to the questions would comprise of the qualitative data which needed to be analysed. A sample of 10% of the total employee count of the organisation can be taken as a suitable sample and the responses of these employees can be properly arranged which comprise the qualitative data that are to be analysed. Apart from this the managers of each subdivision also need to be interviewed and their responses also need to be analysed. It can further be tested whether there is a correlation between the opinions of the managers and the opinions of the employees. The responses of the managers also need to be collected for analysis (Patten 2016). The sampling procedure which needs to be performed can be a simple random sampling without replacement. This is to be done so that the sample of responses which have been collected is a proper representative of the population. Research Program: The research program comprises of organising a particular team of officials to carry out the research activities. The team also needs to ask the research questions effectively in order to elicit suitable responses to the questions which will ultimately pave the way for suitable analysis of the research problem. The nature in which the questions should be asked also needs to be mentioned to the team. The team should also comprise of trained members so that the questions are accurate and maintain a certain amount of sensitivity (Seidman 2013). References: Akhter, S. and Equbal, I., 2012. Organized retailing in IndiaChallenges and opportunities.International Journal of Multidisciplinary Research,2(1), pp.281-291. Andrew, O.C. and Sofian, S., 2012. Individual factors and work outcomes of employee engagement.Procedia-Social and Behavioral Sciences,40, pp.498-508. Anitha, J., 2014. Determinants of employee engagement and their impact on employee performance.International journal of productivity and performance management,63(3), p.308. Breevaart, K., Bakker, A., Hetland, J., Demerouti, E., Olsen, O.K. and Espevik, R., 2014. Daily transactional and transformational leadership and daily employee engagement.Journal of occupational and organizational psychology,87(1), pp.138-157. Creswell, J.W. and Creswell, J.D., 2017.Research design: Qualitative, quantitative, and mixed methods approaches. Sage publications. Garg, P., 2014. Impact of employee engagement on it sector.International Journal of Management Research and Reviews,4(1), p.62. Gupta, V. and Kumar, S., 2012. Impact of performance appraisal justice on employee engagement: a study of Indian professionals.Employee Relations,35(1), pp.61-78. Mishra, K., Boynton, L. and Mishra, A., 2014. Driving employee engagement: The expanded role of internal communications.International Journal of Business Communication,51(2), pp.183-202. Pathak, S., 2015. Role of Employee in Brand Building of the Organization-Business Branding through Employee.Journal of Marketing Vistas,5(2), p.1. Patten, M.L., 2016.Proposing empirical research: A guide to the fundamentals. Taylor Francis. Pattnaik, C., Chang, J.J. and Shin, H.H., 2013. Business groups and corporate transparency in emerging markets: Empirical evidence from India.Asia Pacific Journal of Management,30(4), pp.987-1004. Seidman, I., 2013.Interviewing as qualitative research: A guide for researchers in education and the social sciences. Teachers college press. Vardhan, J., 2015. A review of market based management as a strategic performance tool-an illustrative example through Tata steel.International Journal of Accounting and Economics Studies,3(1), pp.54-59. Vashishtha, S., 2016. Employee Engagement, Training and Career Development (Tata Tele Services Limited A Case Study).Journal of Commerce and Trade,11(1), pp.101-108. Wang, D.S. and Hsieh, C.C., 2013. The effect of authentic leadership on employee trust and employee engagement.Social Behavior and Personality: an international journal,41(4), pp.613-624.

Trends and Issues in Health Care †Free Sample Assignment

Questions: 1. Discuss the work of the Robert Wood Johnson Foundation Committee Initiative on the Future of Nursing and the Institute of Medicine research that led to the IOM report, Future of Nursing: Leading Change, Advancing Health. 2. Identify the importance of the IOM Future of Nursing report related to nursing practice, nursing education and nursing workforce development. 3 .What is the role of state-based action coalitions and how do they advance goals of the Future of Nursing: Campaign for Action? 4. Summarize two initiatives spearheaded by your states Action Coalition. In what ways do these initiatives advance the nursing profession? What barriers to advancement currently exist in your state? How can nursing advocates in your state overcome these barriers? Answers: 1. As per the initiative of Robert Wood Johnson Foundation Committee, it is discovered that, the nurses have the potential as well as innovative strategies for mitigating various highly serious health issues as well as to improve the existing situation of the healthcare system. However, as opined by Pittman et al. (2015), various difficulties may come to them, which can be related to the demographic challenges, aging workforce, fragmentation of the healthcare related setting and the other relevant barriers that are able to hinder the potentiality of the nurses. It is necessary to mention that, Robert Wood Johnson Foundation Committee strictly developed the mandatory rules for the nurses that, they should have to provide their best effort based on their training as well as educational knowledge for achieving the desired aims as well as objectives that are related to the healthcare sector as commented by Redman et al. (2015). On the other hand, Robert Wood Johnson Foundation Committee developed few recommendations that ensure that the Medicare programs should have to be expanded as well as these types of programs must have to include all of the highly significant services that are related to the advanced practice. On the other hand, Robert Wood Johnson Foundation Committee recommends initiating the development programs along with the Nursing Education Program for providing the entrepreneurial professionalism development for the professional nurses. Apart from that, as stated by Pittman et al. (2014), Robert Wood Johnson Foundation Committee e nsures that the nurses have to engaged with the lifelong learning for their self development as well as for providing an enhanced services within the healthcare sector. 2. The major reason of the importance of the Institute of Medicines (IOM) is due to its roles as well as responsibilities regarding the healthcare sector as well as to provide highly significant information to the nurses. As commented by Pittman et al. (2014), Institute of Medicines (IOM) is able to assure the expertise decisions in a cohesive manner for improving the existing situation of the healthcare sector as well as all of the highly significant decisions and reports are developed by the committee undergoes highly effective evaluation as well as review. It is necessary to mention that, Institute of Medicines (IOM)is always giving the prioritizing the issues that are facing by the nurses as well as the obligation came from the nurses are also resolved by this particular organization. In addition, decision related to the life as well as death in the health professions are including in the context of healthcare sector is the foremost challenging from the aspect of ethical as well as practical viewpoint (Action Coalitions - Future of Nursing: Campaign for Action 2016). Apart from that, recommending highly important aspects that are related to improvising the future of the nursing is also treated as the higher responsibility of the Institute of Medicines (IOM) for making a potential workforce that is collaborated with the professional as well as honest nurses. It is necessary to mention that, various important legislations as well standards are set by Institute of Medicines (IOM) for enhancing the nursing education. 3. As commented by Redman et al. (2015), Action Coalitions are actually discussed for improvising the concept of the future of the nursing as well as Action Coalitions are able to diverse the groups that are related to the stakeholders. It is necessary to mention that, these diverse groups are able to make affect the concept of sustainable development related to the healthcare sector in respect to state as well as national level. Action Coalitions includes to set a clear goals that have to achieved for improving the healthcare sector by the potentiality of the professional nurses as well as forming the stakeholders for representing the variety of the sectors for building up an appropriate blueprint action (Center for Nursing - Foundation of NY State Nurses, 2016). On the other hand, each of the Action Coalitions are facilitating with the desired goals that are able to be a part of the overall outcomes that are related to the healthcare campaigns as well as campaigns that are related to influence the professional nurses. Apart from that, the campaign leadership is able to develop dashboards as well as the highly significant strategic framework that are able to support most of the important facets of the campaign for the significant action including the most significant Action Coalitions. As opined by Pittman et al. (2015), presently, near around 36 Action Coalitions are launched into two significant phases in various nations such as, Virginia, Georgia, Hawaii, Texas, Ohio, Kansas and the other places. 4. The primary initiatives of the United States related to the Action Coalitions are to: Demonstrate the nonpartisan supports as well as broad for generating the recommendations report. Ensure the involvement of the authorities who are directly related to the local, state as well as national levels. Encourage the leaders whose positions are high in respect of politics for diversifying the field of healthcare sector of United States. The initiatives of the United States related to the Action Coalitions can be advance through the improvement of the access, value as well as the quality of the healthcare in the context of the role of the nurse professionals. On the other hand, involvements of the stakeholders of the various healthcare organizations are also treated as the advance for initiate the Action Coalitions in context of United States (IOM Future of Nursing Report, 2016). The existing barrier to advancement that is hindering the progress of Action Coalitions is the lack of potential of the workforce related to the professional nurses. Most of the healthcare organizations have insufficient numbers of professional as well as honest nurse professions for providing enhanced services to the service users. On the other hand, lack of better partnerships between the healthcare organizations is also creating barriers in context of United States. Nursing advocates in United States can able to overcome the barriers through expanding the highly significant opportunities for the professional nurses for leading them towards emphasizing their practical knowledge as well as skills for providing better services to the service users. Reference List Action Coalitions - Future of Nursing: Campaign for Action. (2016). Campaign for Action. Retrieved 10 June 2016, from https://campaignforaction.org/states Center for Nursing - Foundation of NY State Nurses. (2016). Foundationnysnurses.org. Retrieved 10 June 2016, from https://foundationnysnurses.org/foundation/future-of-nursing. IOM Future of Nursing Report. (2016). Nursingworld.org. Retrieved 10 June 2016, from https://www.nursingworld.org/MainMenuCategories/ThePracticeofProfessionalNursing/workforce/IOM-Future-of-Nursing-Report-1. Pittman, P., Bass, E., Hargraves, J., Herrera, C., Thompson, P. (2015). The future of nursing: monitoring the progress of recommended change in hospitals, nurse-led clinics, and home health and hospice agencies.Journal of Nursing Administration,45(2), 93-99. Pittman, P., Horton, K., Terry, M., Bass, E. (2014). Residency Programs for Home Health and Hospice Nurses Prevalence, Barriers, and Potential Policy Responses.Home Health Care Management Practice,26(2), 86-91. Redman, R. W., Pressler, S. J., Furspan, P., Potempa, K. (2015). Nurses in the United States with a practice doctorate: Implications for leading in the current context of health care.Nursing outlook,63(2), 124-129.

Jessica Galati Essays - Visual Arts, Art Movements, Arts, Modern Art

Jessica Galati Art and Visual Culture December 3, 2013 Assignment 5: Art and Social Issues This piece is called "Merry-Go-Round" and it was painted by Mark Gertler in 1916, during the the first world war. It is oil paint on canvas canvas and it is in the modernist and futuristic style. The modernist art period lasted between 1860's to the 1970's. The modernist style was one of experimentation of removing the narrative of the art and using more abstract representation to get their ideas across. The artists started making more striking and unexpected pieces breaking social norms, such as Picasso's pieces with prostitutes and violent portrayals of women. This style was often a blended with futurism in the early 20th century as styles began to change. Along with modernism and futurism, cubanism, expressionism, and fauvism were among the new flourishing art movements of the early 20th century. Mark Gertler was born in 1891 in London, a Polish Jewish immigrant. He attended classes at Regent Street Polytechnic and Slade School of Art, University College in London. He had many social problems and often faced poverty. He married in 1930 but about ten years later she left him. Gertler committed suicide in his London studio in 1939 due to increasing financial difficulties, his wife leaving him, and his fear of the war. The art clearly reflects the Gertler's feelings about the tim period in which it was created. The first world war was raging and Gertler feared it and feared being drafted. The painting was created after a carnival held for wounded soldiers. It is believed that he saw many men on the carousel posing with very fake smiles for a newspaper photograph. The idea behind the paining is that the war goes on and on in a never ending mechanical loop. During this time Britain was in turmoil over entering a war they did not want to be a part of. Citizens were in uproar about entering a war, debating over whether or not to support it. I think the piece does a very good job answering the question of whether or not the country should support the war. The colors in this depict a dull grey world and a new age of machenary, which is reflected by the new mechanized warfare and desolation of war grounds. Gertler is saying, with no objection, that the war should not go on. He believes the new way of war will bring misery, and his opinion is not far off from the rest of what the country believed. Because of this piece many were moved by the idea of a never ending war and recognized the new way that war was waged. It caused many to see the suffering of their country. The discontent is represented in the hard lines of the humans and stark contrast of the background. The painting was put in an exhibition causing many to see and review its piece, each writing their own take on the sorrow of their country. This piece caused many to tell their own tale of suffering due to the war as well. Not only did this piece tell Gertler's story but also brought forth stories from others. The piece I chose can teach me very much about the way life was during this era. I can see the grey bleak background and harsh shadows and understand that there was desperation and sorrow in the country and the peoples hearts. The strict contrast of colors, however still muted, shows us that the people did not want to be in this war that they instead wanted to stand away from it. We can also learn the more literal parts of history back then., for example the fact that they held carnivals for the wounded soldiers.

How To Use AP Lit Essay Samples To Write Better Essays

How To Use AP Lit Essay Samples To Write Better EssaysAn AP Lit essay sample can be very helpful for any student, whether they are writing an AP Lit essay or a college level general writing essay. The question is what type of essay sample should you use? Here are a few pointers to help you make the right decision.The first and most obvious tip is to pick something you are comfortable with. Students who struggle with certain types of essays are usually better off using some sort of sample essay that they have experience with. If they know they are comfortable with it, they are much more likely to write more effectively than students who have never used it before.Another great tip is to pick one of the sample essays for a topic that you have a good feel for. It is very possible that you will have a difficult time with the topic at hand. When this happens, you can turn to an essay sample that you already know you are going to be comfortable with.Most students have heard of essay samples that they find online. These types of essay samples are called 'homework.' Homework is good because it gives you practice and confidence as you write. Some students find that using this type of essay sample is extremely helpful and the results can be seen right away.On the other hand, most students do not want to do homework with an essay samples because of the amount of time required. In addition, they tend to ask a lot of questions. On the other hand, if you need to practice writing a long essay and you find that the online samples are too time consuming, then a Homework essay sample may be a better option.AP Lit essay samples are very helpful for this type of essay. It allows you to practice and get some experience on the topic at hand. In addition, it gives you a feeling for how long it takes to write a real essay.If you have never written a college level essay before, then you may want to try one of the essay samples that are relatively easy to understand. Homework is helpful but it doesn't give you the same confidence that you would get from writing a well-researched essay. If you are still unsure of how to write a truly informative essay, then try a Homework essay sample.Remember that most students are in favor of these essay samples. That means that you should try to find as many AP Lit essay samples as possible. Using as many as possible will allow you to practice and write in different situations.

Treat Self-Publishing as a Business †Interviewing Elise Kova

Treat Self-Publishing as a Business – Interviewing Elise Kova "Treat Self-Publishing as a Business" – Interviewing Elise Kova We often hear that "the golden age of self-publishing is gone", so we like to use our blog to remind authors that, no, that's not true. There are many more indie success stories than the ones you repeatedly hear about out there, and Elise Kova's is one of them. She started writing in 2013, as a hobby, on Fictionpress. She now has 5 books out in her Air Awakens Series and the first one has over 500 reviews on Goodreads. In this interview, she shares  more about her writing process, why she self-published, and some advice for newer authors.Hi Elise! It’s such a pleasure to have you join us for the Reedsy blog. I want to start off by talking a bit about how you came to write the Air Awakens series. YA fiction has captured the heart of the public in the last few years  Ã¢â‚¬â€œÃ‚  what is it about the YA fantasy genre that really appeals to you as an author?I love talking about books, so thank you for reaching out to me for this interview!I honestly didn't set out thinking tha t I was going to be a "YA Author". I've always loved writing, but I stopped doing it avidly for about four or so years during college and my MBA. When I sat down to write Air Awakens I didn't do so with the intention of being published, I just wanted to enjoy writing a story that I would want to read myself.When I began looking into publication later I toiled over if Air Awakens was "Adult" or "Young Adult" and the young adult age bracket fit better. I think there is something timeless about the "coming of age" story that we see in so much young adult fiction and many, myself included, are drawn to that. So I'm not surprised Air Awakens developed in that direction.Young adult readers can, and hopefully do, sympathize with and recognize the struggles of the protagonists. Whereas older readers remember going through those times themselves. Even more than that, I think people are constantly evolving and the questions of "Who am I?" and "What do I want?" may be more apparent during the transition into adulthood, but never really go away no matter how old we get.One of the things the series is most commonly praised for is its worldbuilding. The Solaris Empire, the Bond, the elemental magic – all of it is so well-developed! Was this a world you thought up quickly when you started actually writing Air Awakens, or had it been living and growing in your mind before that?I'm awful at planning, it's actually something I'm working on doing more in the future: pre-drafting. So much of the Air Awakens world was built as I went. As a result, there were a lot of things that didn't make sense when all was said and done; directions I thought I may take but never explored, or elements that didn't add anything.The series has gone through extensive rewrites before publication and at that point I really sat down and investigated the world and its mechanics. I cut a lot and refined the rest. 50 Book Marketing Ideas Every Author Needs to Know Read post Most indie authors struggle with getting their books discovered. What is the most important thing that you have done in terms of marketing that you think is responsible for your success?Oh, questions like this are so difficult to answer, as it's all speculation. But I think, for me, I've tried really hard to be both genuine and available to my readers. I'm constantly on my social media outlets and I'm not really shy on them when it comes to saying what I think, what I'm geeking out about, or what I'm up to. The bookish community on Twitter, Instagram, blogs, etc, is full of such amazing people that I've been so so lucky to meet.Follow Elise Kova and Reedsy on Twitter:  @EliseKova  and @ReedsyHQWhy did  you choose to self-publish? What would be  your advice for newer  authors looking to become the next "indie success story"? Do share your thoughts, or ask Elise any question, in the comments below!

Basel Norms in India

B. C. D. E. F. G. Background Functions of Basel Committee The Evolution to Basel II – First Basel Accord Capital Requirements and Capital Calculation under Basel I Criticisms of Basel I New Approach to Risk Based Capital Structure of Basel II First Pillar : Minimum Capital Requirement Types of Risks under Pillar I The Second Pillar : Supervisory Review Process The Third Pillar : Market Discipline 3 3 3 3 3 4 4 II. The Three Pillar Approach A. B. C. D. 5 5 6 6 7 7 7 III. Capital Arbitrage and Core Effect of Basel II A. Capital Arbitrage B. Bank Loan Rating under Basel II Capital Adequacy Framework C. Effect of Basel II on Bank Loan Rating IV. Basel II in India A. Implementation C. Impact on Indian Banks D. Impact on Various Elements of Investment Portfolio of Banks E. Impact on Bad Debts and NPA’s of Indian Banks D. Government Policy on Foreign Investment E. Threat of Foreign Takeover 8 8 9 10 10 10 V. Conclusion A. SWOT Analysis of Basel II in Indian Banking Context B. Challenges going ahead under Basel II 11 11 13 13 VI. VII. References The Technical Paper Presentation Team 2 I. Introduction: A. Background Basel II is a new capital adequacy framework applicable to Scheduled Commercial Banks in India as mandated by the Reserve Bank of India (RBI). The Basel II guidelines were issued by the Basel Committee on Banking Supervision that was initially published in June 2004. The Accord has been accepted by over 100 countries including India. In April 2007, RBI published the final guidelines for Banks operating in India. Basel II aims to create international standards that deals with Capital Measurement and Capital Standards for Banks which banking regulators can use when creating regulations about how much banks need to put aside to guard against the types of financial and operational risks banks face. The Basel Committee on Banking Supervision was constituted by the Central Bank Governors of the G-10 countries in 1974 consisting of members from Australia, Brazil, Canada, United States, United Kingdom, Spain, India, Japan, etc to name a few. The ommittee regularly meets four times a year at the Bank for International Settlements (BIS) in Basel, Switzerland where its 10 member Secretariat is located. B. Functions of the Basel Committee The purpose of the committee is to encourage the convergence toward common approaches and standards. However, the Basel Committee is not a classical multilateral organisation like World Trade Organisation. It has no founding treaty and it does not issue binding regulat ions. It is rather an informal forum to find policy solutions and promulgate standards. C. The Evolution to Basel II – First Basel Accord The First Basel Accord (Basel I) was completed in 1988. The main features of Basel I were: †¢ †¢ †¢ Set minimum capital standards for banks Standards focused on credit risk, the main risk incurred by banks Became effective end-year 1992 The First Basel Accord aimed at creating a level playing field for internationally active banks. Hence, banks from different countries competing for the same loans would have to set aside roughly the same amount of capital on the loans. D. Capital Requirements and Capital Calculation under Basel – I Minimum Capital Adequacy ratio was set at 8% and was adjusted by a loan’s credit risk weight. Credit risk was divided into 5 categories viz. 0%, 10%, 20%, 50% and 100%. Commercial loans, for example, were assigned to the 100% risk weight category. To calculate required capital, a bank would multiply the assets in each risk category by the category’s risk weight and then multiply the result by 8%. Thus, a Rs 100 commercial loan would be multiplied by 100% and then by 8%, resulting in a capital requirement of Rs8. E. Criticisms of Basel – I Following are the criticisms of the First Basel Accord (Basel I):†¢ †¢ It took too simplistic an approach to setting credit risk weights and for ignoring other types of risk. Risks weights were based on what the parties to the Accord negotiated rather than on the actual risk of each asset. Risk weights did not flow from any particular insolvency probability standard, and were for the most part, arbitrary. 3 †¢ †¢ †¢ The requirements did not account for the operational and other forms of risk that may also be important. Except for trading account activities, the capital standards did not account for hedging, diversification, and differences in risk management techniques. Advances in technology and finance allowed banks to develop their own capital allocation models in the 1990’s. This resulted in more accurate calculation of bank capital than possible under Basel I. These models allowed banks to align the amount of risk they undertook on a loan with the overall goals of the bank. Internal models allow banks to more finely differentiate risks of individual loans than is possible under Basel – I. It facilitates risks to be differentiated within loan categories and between loan categories and also allows the application of a capital charge to each loan, rather than each category of loan. F. New Approach to Risk-Based Capital †¢ †¢ †¢ By the late 1990’s, growth in the use of regulatory capital arbitrage led the Basel Committee to begin work on a new capital regime (Basel II) Effort focused on using banks’ internal rating models and internal risk models June 1999: The Basel Committee issued a proposal for a new capital adequacy framework to replace Basel – I. In order to overcome the criticisms of Basel – I and for adoption of the new approach to riskbased capital, Basel II guidelines were introduced. G. Structure of Basel – II Basel – II adopts a three pillar approach: †¢ †¢ †¢ Pillar I – Minimum Capital Requirement (Addressing Credit Risk, Operational Risk Market Risk) Pillar II – Supervisory Review (Provides Framework for Systematic Risk, Liquidity Risk Legal Risk) Pillar III – Market Discipline Disclosure (To promote greater stability in the financial system) II. The Three Pillar Approach The first pillar establishes a way to quantify the minimum capital requirements. The main objective of Pillar I is to align capital the adequacy ratios to the risk sensitivity of the assets affording a greater flexibility in the computation of banks’ individual risk. Capital Adequacy Ratio is defined as the amount of regulatory capital to be maintained by a bank to account for various risks inbuilt in the banking system. The focus of Capital Adequacy Ratio under Basel I norms was on credit risk and was calculated as follows: Capital Adequacy Ratio = Tier I Capital+Tier II Capital Risk Weighted Assets Basel Committee has revised the guidelines in the year June 2001 known as Basel II Norms. Capital Adequacy Ratio in New Accord of Basel II: Capital Adequacy Ratio = Total Capital (Tier I Capital+Tier II Capital) Market Risk(RWA) + Credit Risk(RWA) + Operation Risk(RWA) *RWA = Risk Weighted Assets Calculation of Capital Adequacy Ratio: Total Capital: Total Capital constitutes of Tier I Capital and Tier II Capital less shareholding in other banks. Tier I Capital = Ordinary Capital + Retained Earnings Share Premium – Intangible assets. Tier II Capital = Undisclosed Reserves + General Bad Debt Provision+ Revaluation Reserve+ Subordinate debt+ Redeemable Preference shares Tier III Capital: Tier III Capital includes subordinate debt with a maturity of at least 2 years. This is addition or substitution to the Tier II Capital to cover market risk alone. Tier III Capital should not cover more than 250% of Tier I capital allocated to market risk. A. First Pillar : Minimum Capital Requirement B. Types of Risks under Pillar I . Credit Risk Credit risk is the risk of loss due to a debtor’s non-payment of a loan or other line of credit (either the principal or interest (coupon) or both). Basel II envisages two different ways of measuring credit risk which are standarised approach, Internal Rating-Based Approach. The Standardised Approach The standardized approach is conceptually the same as the present Accord, but is more ri sk sensitive. Under this approach the banks are required to use ratings from External Credit Rating Agencies to quantify required capital for credit risk. The Internal Ratings Based Approach (IRB) Under the IRB approach, different methods will be provided for different types of loan exposures. Basically there are two methods for risk measurement which are Foundation IRB and Advanced IRB. The framework allows for both a foundation method in which a bank estimate the probability of default associated with each borrower, and the supervisors will 5 supply the other inputs and an advanced IRB approach, in which a bank will be permitted to supply other necessary inputs as well. Under both the foundation and advanced IRB approaches, the range of risk weights will be far more diverse than those in the standardized approach, resulting in greater risk sensitivity. 2. Operational Risk An operational risk is a risk arising from execution of a company’s business functions. As such, it is a very broad concept including e. g. fraud risk, legal risk, physical or environmental risks, etc. Basel II defines operational risk as the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events. Although the risks apply to any organization in business, this particular risk is of particular relevance to the banking regime where regulators are responsible for establishing safeguards to protect against systematic failure of the banking system and the economy. Banks will be able to choose between three ways of calculating the capital charge for operational risk – the Basic Indicator Approach, the Standardized Approach and the advanced measurement Approaches. 3. Market Risk Market risk is the risk that the value of a portfolio, either an nvestment portfolio or a trading portfolio, will decrease due to the change in value of the market risk factors. The four standard market risk factors are stock prices, interest rates, foreign exchange rates, and commodity prices. The preferred approach is VAR(value at risk). C. The Second Pillar : Supervisory Review Process Supervisory review process has been introduced to ensure not only that banks have adequate capital to support all th e risks, but also to encourage them to develop and use better risk management techniques in monitoring and managing their risks. The process has four key principles – a) Banks should have a process for assessing their overall capital adequacy in relation to their risk profile and a strategy for monitoring their capital levels. b) Supervisors should review and evaluate bank’s internal capital adequacy assessment and strategies, as well as their ability to monitor and ensure their compliance with regulatory capital ratios. c) Supervisors should expect banks to operate above the minimum regulatory capital ratios and should have the ability to require banks to hold capital in excess of the minimum. ) Supervisors should seek to intervene at an early stage to prevent capital from falling below minimum level and should require rapid remedial action if capital is not mentioned or restored. D. The Third Pillar : Market Discipline Market discipline imposes strong incentives to banks to conduct their business in a safe, sound and effective manner. It is proposed to be effected through a series of disclosure requirements on capital, risk exposure etc. so that market participants can assess a bank’s capital adequacy. These disclosures should be made at least semiannually and more frequently if appropriate. Qualitative disclosures such as risk management objectives and policies, definitions etc. may be published annually. 6 III. Capital Arbitrage and Core Effect of Basel II Regulatory arbitrage is where a regulated institution takes advantage of the difference between its real (or economic) risk and the regulatory position. Securitization is the main means used by Banks to engage in Regulatory Capital Arbitrage. Example of Capital Arbitrage is given below: A. Capital Arbitrage †¢ Assume a bank has a portfolio of commercial loans with the following ratings and internally generated capital requirements – AA-A: 3%-4% capital needed – B+-B: 8% capital needed – B- and below: 12%-16% capital needed Under Basel I, the bank has to hold 8% risk-based capital against all of these loans To ensure the profitability of the better quality loans, the bank engages in capital arbitrage, it securitizes the loans so that they are reclassified into a lower regulatory risk category with a lower capital charge Lower quality loans with higher internal capital charges are kept on the bank’s books because they require less risk-based capital than the bank’s internal model indicates. †¢ †¢ †¢ B. Bank Loan Rating under Basel – II Capital Adequacy Framework †¢ On April 27, 2007, the Reserve Bank of India released the final guidelines for implementation of the New Capital Adequacy Framework (Basel II) applicable to the Banking system of the country The new framework mandates that the amount of capital provided by a bank against any loan and facility will be based on the credit rating assigned to the loan issue by an external rating agency. This means that a loan and a facility with a higher credit rating will attract a lower risk weight than one with a lower credit rating. †¢ †¢ Illustration of capital-saving potential by banks on a loan of Rs 1000 million Rating Basel I Basel II Capital Saved (Rs Long Short Risk Capital Risk Capital Million) Term Term Weight Required* Weight Required Rating Rating (Rs Million) (Rs Million) AAA P1+ 100% 90 20% 18 72 AA P1 100% 90 30% 27 63 A P2 100% 90 50% 45 45 BBB P3 100% 90 100% 90 0 BB P4 P5 100% 90 150% 135 (45) below Unrated Unrated 100% 90 100% 90 0 *Capital required is computed as Loan Amount ? Risk Weight ? 9% C. Effect of Basel – II on Bank Loan Rating †¢ †¢ Banks would either prefer that the Borrower should get itself rated, or, It would prefer that the borrowing institution should pay a higher rate of interest to compensate for the loss. 7 To substantiate the above fact, following example is taken in respect of a strong company: Loan of Rating AAA is taken of Rs 100 Crores @ 12% interest rate Capital Adequacy Rating Risk % Capital Required Opportunity Ratio (Rs Crores) Interest lost by the Bank (Rs Crores) C. A. R. Unrated 100% 9. 00 1. 08 C. A. R. New 20% 1. 80 0. 22 Total Opportunity Interest lost by the Bank (Rs Crores) 0. 86 Hence, Banks would resort to the above-mentioned measures in order to reduce or curb this loss on opportunity interest. Worse affected by this action taken by Banks would be the weaker companies. They would either be charged a higher rate of interest on loans to compensate for the loss or would alternatively have to approach another bank charging a lower rate of interest. The ideal solution to this problem would be that a weaker company should get itself rated and also take steps in order to have a better credit rating. Credit Rating is an evaluation of credit worthiness of a person, company or instrument. Thus, it indicates their willingness to pay for the obligation and the net worth. IV. Basel II in India A. Implementation The deadline for implementing the base approach of Basel II norms in India, was originally set for March 31, 2007. Later the RBI extended the deadline for Foreign banks in India and Indian banks operating abroad to meet those norms by March 31, 2008, while all other scheduled commercial banks were to adhere to the guidelines by March 31, 2009. Later the RBI confirmed that all commercial banks were Basel II compliant by March 31, 2009. Keeping in view the likely lead time that may be needed by the banks for creating the requisite technological and the risk management infrastructure, including the required databases, the MIS and the skill up-gradation, etc. , RBI has proposed the implementation of the advanced approaches under Basel II in a phased manner starting from April 1, 2010 B. Impact on Indian Banks Basel II allows national regulators to specify risk weights different from the internationally recommended ones for retail exposures. The RBI had, therefore, announced an indicative set of weights for domestic corporate long-term loans and 8 bonds subject to different ratings by international rating agencies such as Moody’s Investor Services which are slightly different from that specified by the Basel Committee (Table 1). C. Impact on various elements of the investment portfolio of banks The bonds and debentures portfolio of the banks consist of investments into higher rated companies, hence the corporate assets measured using the standardised approach may be exposed to slightly lower risk weights in comparison with the 100 per cent risk weights assigned under Basel I. The Indian banks have a large short-term portfolio in the form of cash credit, overdraft and working capital demand loans, which were un-rated, and carried a risk weight of 100 per cent under the Basel I regime. They also have short-term investments in commercial papers in their investment portfolio, which also carried a 100 per cent risk weight. The RBI’s capital adequacy guidelines has prescribed lower risk weights for short-tem exposures, if these are rated (Table 2). This provides the banks with an opportunity to benefit from their investments in commercial paper (which are typically rated in A1+/A1 category) and give them the potential to exploit the proposed short-term credit risk weights by obtaining short-term ratings for exposures in the form of cash credit, overdraft and working capital loans. The net result is that the implementation of Basel II provided Indian banks with the opportunity to significantly reduce their credit risk weights and reduce their required regulatory capital, if they suitably adjust their portfolio by lending to rated but strong corporate and increase their retail lending. According to some reports, most of the Indian banks who have migrated to Basel II have reported a reduction in their total Capital Adequacy Ratios (CARs). However, a few banks, those with high exposures to higher rated corporate or to the regulatory retail portfolio, have reported increased CARs. However, a recent study by New Delhi-based industry lobby group Assocham has concluded that Capital Adequacy Ratio (CAR) of a group of commercial banks, which were part of the study improved to 13. 48% in 2008-09 from 12. 35% in 2007-08, due to lower risk weights, implementation of Basel II norms and slower credit growth. 9 D. Bad debts and requirement of additional capital In this context, the situation regarding bad debts and NPA’s is very pertinent. The proportion of total NPAs to total advances declined from 23. 2 per cent in March 1993 to 7. per cent in March, 2004. The improvement in terms of NPAs has been largely the result of provisioning or infusion of capital. This meant that if the banks required more capital, as they would to implement Basel II norms, they would have to find capital outside of their own or the governmentâ₠¬â„¢s resources. ICRA has estimated that, Indian banks would need additional capital of up to Rs. 12,000 crore to meet the capital charge requirement for operational risk under Basel II. Most of this capital would be required by PSBs Rs. 9,000 crore, followed by the new generation private sector banks Rs. 1,100 crore, and the old generation private sector bank Rs. 750 crore. In practice, to deal with this, a large number of banks have been forced to turn to the capital market to meet their additional regulatory capital requirements. ICICI Bank, for example, has raised around Rs. 3,500 crore, thus improving its Tier I capital significantly. Many of the PSBs, namely, Punjab National Bank, Bank of India, Bank of Baroda and Dena Bank, besides private sector banks such as UTI Bank have either already tapped the market or have announced plans to raise equity capital in order to boost their Tier I capital. E. Government Policy on foreign investment The need to go public and raise capital challenged the government policy aimed at restricting concentration of share ownership, maintaining public dominance and limiting foreign influence in the banking sector. One immediate fallout was that PSBs being permitted to dilute the government’s stake to 51 per cent, and the pressure to reduce this to 33 per cent increased. Secondly, the government allowed private banks to expand equity by accessing capital from foreign investors. This put pressure on the RBI to rethink its policy on the ownership structure of domestic banks. In the past the RBI has emphasised the risks of concentrated foreign ownership of banking assets in India. Subsequent to a notification issued by the Government, which had raised the FDI limit in private sector banks to 74 per cent under the automatic route, a comprehensive set of policy guidelines on ownership of private banks was issued by the RBI. These guidelines stated, among other things, that no single entity or group of related entities would be allowed to hold shares or exercise control, directly or indirectly, in any private sector bank in excess of 10 per cent of its paid-up capital. F. Threat of foreign takeover There has been growing pressure to consolidate domestic banks to make them capable of facing international competition. Indian banks are pigmies compared with the global majors. India’s biggest bank, the State Bank of India, which accounts for onefifth of the total banking assets in the country, is roughly one-fifth as large as the world’s biggest bank Citigroup. Given this difference, even after consolidation of 10 omestic banks, the threat of foreign takeover remains if FDI policy with respect to the banking sector is relaxed. Not surprisingly, a number of foreign banks have already evinced an interest in acquiring a stake in Indian banks. Thus, it appears that foreign bank presence and consoli dation of banking are inevitable post Basel II. V. Conclusion A. SWOT Analysis of Basel II in Indian Banking Context Strenghts †¢ †¢ Aggression towards development of the existing standards by banks. Strong regulatory impact by central bank to all the banks for implementation. Presence of intellectual capital to face the change in implementation with good quality. †¢ †¢ †¢ Weaknesses Poor Technology Infrastructure Ineffective Risk Measures Presence of more number of Smaller banks that would likely to be impacted adversely. †¢ Opportunities †¢ †¢ Increasing Risk Management Expertise. Need significant connection among business,credit and risk management and Information Technology. Advancement of Technologies. Strong Asset Base would help in bigger growth. †¢ †¢ Threats Inability to meet the additional Capital Requirements Loss of Capital to the entire banking system, due to Mergers and acquisitions. Huge Investments in technologies †¢ †¢ †¢ B. Challenges going ahead under Basel II †¢ The new norms will almost invariably increase capital requirement in all banks across the board. Although capital requirement for credit risk may go down due to adoption of more risk sensitive models – such advantage will be more than offset by additional capital charge for operational risk and increased capital requirement for market risk. This partly explains the current trend of consolidation in the banking industry. Competition among banks for highly rated corporates needing lower amount of capital may exert pressure on already thinning interest spread. Further, huge implementation cost may also impact profitability for smaller banks. The biggest challenge is the re-structuring of the assets of some of the banks as it would be a tedious process, since most of the banks have poor asset quality leading to significant proportion of NPA. This also may lead to Mergers Acquisitions, which itself would be loss of capital to entire system. The new norms seem to favor the large banks that have better risk management and measurement expertise, who also have better capital adequacy ratios and geographically diversified portfolios. The smaller banks are also likely to be hurt by the rise in weightage †¢ †¢ †¢ 11 of inter-bank loans that will effectively price them out of the market. Thus, banks will have to re-structure and adopt if they are to survive in the new environment. †¢ Since improved risk management and measurement is needed, it aims to give impetus to the use of internal rating system by the international banks. More and more banks may have to use internal model developed in house and their impact is uncertain. Most of these models require minimum historical bank data that is a tedious and high cost process, as most Indian banks do not have such a database. The technology infrastructure in terms of computerization is still in a nascent stage in most Indian banks. Computerization of branches, especially for those banks, which have their network spread out in remote areas, will be a daunting task. Penetration of information technology in banking has been successful in the urban areas, unlike in the rural areas where it is insignificant. An integrated risk management concept, which is the need of the hour to align market, credit and operational risk, will be difficult due to significant disconnect between business, risk managers and IT across the organizations in their existing set-up. Implementation of the Basel II will require huge investments in technology. According to estimates, Indian banks, especially those with a sizeable branch network, will need to spend well over $ 50-70 Million on this. Computation of probability of default, loss given default, migration mapping and supervisory validation require creation of historical database, which is a time consuming process and may require initial support from the supervisor. With the implementation of the new framework, internal auditors may become increasingly involved in various processes, including validation and of the accuracy of the data inputs, review of activities performed by credit functions and assessment of a bank’s capital assessment process. Pillar 3 purports to enforce market discipline through stricter disclosure requirement. While admitting that such disclosure may be useful for supervisory authorities and rating agencies, the expertise and ability of the general public to comprehend and interpret disclosed information is open to question. Moreover, too much disclosure may cause information overload and may even damage financial position of bank. Basel II proposals underscore the interaction between sound risk management practices and corporate good governance. The bank’s board of directors has the responsibility for setting the basic tolerance levels for various types of risk. It should also ensure that management establishes a framework for assessing the risks, develop a system to relate risk to the bank’s capital levels and establish a method for monitoring compliance with internal policies. The risk weighting scheme under Standardised Approach also creates some incentive for some of the bank clients to remain unrated since such entities receive a lower risk weight of 100 per cent vis-a-vis 150 per cent risk weight for a lowest rated client. This might specially be the case if the unrated client expects a poor rating. The banks will need to be watchful in this regard. †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ We can conclude by saying that the Basel II framework provides significant incentives to banks to sharpen their risk management expertise to enable more efficient risk-return tradeoffs, it also presents a valuable opportunity to gear up their internal processes to the 12 international best standards. This would require substantial capacity building and commitment of resources through close involvement of the banks’ Top Management in guiding this arduous undertaking. Notwithstanding intense competition, the expansionary phase of the economy is expected to provide ample opportunities for the growth of the banking industry. The growth trajectory, adherence to global best practices and risk management norms are likely to catapult the Indian Banks onto the global map, making them a force to reckon with. VI. References 1. The Evolution to Basel II by Donald Inscoe, Deputy Director, Division of Insurance and Research, US Federal Deposit Insurance Corporation. 2. Basel II – Challenges Ahead of the Indian Banking Industry by Jagannath Mishra and Pankaj Kumar Kalawatia. 3. Basel II Norms and Credit Ratings by CA Sangeet Kumar Gupta. 4. The Business Line Magazine. 5. The Chartered Accountant – Journal of the Institute of Chartered Accountants of India. 6. www. bis. org 7. www. rbi. org. in 8. www. wikipedia. org 9. www. google. com VII. The Technical Paper Presentation Team Name of Member Email ID’s rahulscsharma@icai. org tulsyan. abhishek@yahoo. co. in sikha. kedia0311@gmail. com ca. gouravmodi@gmail. com Praveen_did@yahoo. com 1. Rahul Sharma 2. Abhishek Tulsyan 3. Sikha Kedia 4. Gourav Modi 5. Praveen Didwania 13 Basel Norms in India Basel Norms in India Basel Norms in India B. C. D. E. F. G. Background Functions of Basel Committee The Evolution to Basel II – First Basel Accord Capital Requirements and Capital Calculation under Basel I Criticisms of Basel I New Approach to Risk Based Capital Structure of Basel II First Pillar : Minimum Capital Requirement Types of Risks under Pillar I The Second Pillar : Supervisory Review Process The Third Pillar : Market Discipline 3 3 3 3 3 4 4 II. The Three Pillar Approach A. B. C. D. 5 5 6 6 7 7 7 III. Capital Arbitrage and Core Effect of Basel II A. Capital Arbitrage B. Bank Loan Rating under Basel II Capital Adequacy Framework C. Effect of Basel II on Bank Loan Rating IV. Basel II in India A. Implementation C. Impact on Indian Banks D. Impact on Various Elements of Investment Portfolio of Banks E. Impact on Bad Debts and NPA’s of Indian Banks D. Government Policy on Foreign Investment E. Threat of Foreign Takeover 8 8 9 10 10 10 V. Conclusion A. SWOT Analysis of Basel II in Indian Banking Context B. Challenges going ahead under Basel II 11 11 13 13 VI. VII. References The Technical Paper Presentation Team 2 I. Introduction: A. Background Basel II is a new capital adequacy framework applicable to Scheduled Commercial Banks in India as mandated by the Reserve Bank of India (RBI). The Basel II guidelines were issued by the Basel Committee on Banking Supervision that was initially published in June 2004. The Accord has been accepted by over 100 countries including India. In April 2007, RBI published the final guidelines for Banks operating in India. Basel II aims to create international standards that deals with Capital Measurement and Capital Standards for Banks which banking regulators can use when creating regulations about how much banks need to put aside to guard against the types of financial and operational risks banks face. The Basel Committee on Banking Supervision was constituted by the Central Bank Governors of the G-10 countries in 1974 consisting of members from Australia, Brazil, Canada, United States, United Kingdom, Spain, India, Japan, etc to name a few. The ommittee regularly meets four times a year at the Bank for International Settlements (BIS) in Basel, Switzerland where its 10 member Secretariat is located. B. Functions of the Basel Committee The purpose of the committee is to encourage the convergence toward common approaches and standards. However, the Basel Committee is not a classical multilateral organisation like World Trade Organisation. It has no founding treaty and it does not issue binding regulat ions. It is rather an informal forum to find policy solutions and promulgate standards. C. The Evolution to Basel II – First Basel Accord The First Basel Accord (Basel I) was completed in 1988. The main features of Basel I were: †¢ †¢ †¢ Set minimum capital standards for banks Standards focused on credit risk, the main risk incurred by banks Became effective end-year 1992 The First Basel Accord aimed at creating a level playing field for internationally active banks. Hence, banks from different countries competing for the same loans would have to set aside roughly the same amount of capital on the loans. D. Capital Requirements and Capital Calculation under Basel – I Minimum Capital Adequacy ratio was set at 8% and was adjusted by a loan’s credit risk weight. Credit risk was divided into 5 categories viz. 0%, 10%, 20%, 50% and 100%. Commercial loans, for example, were assigned to the 100% risk weight category. To calculate required capital, a bank would multiply the assets in each risk category by the category’s risk weight and then multiply the result by 8%. Thus, a Rs 100 commercial loan would be multiplied by 100% and then by 8%, resulting in a capital requirement of Rs8. E. Criticisms of Basel – I Following are the criticisms of the First Basel Accord (Basel I):†¢ †¢ It took too simplistic an approach to setting credit risk weights and for ignoring other types of risk. Risks weights were based on what the parties to the Accord negotiated rather than on the actual risk of each asset. Risk weights did not flow from any particular insolvency probability standard, and were for the most part, arbitrary. 3 †¢ †¢ †¢ The requirements did not account for the operational and other forms of risk that may also be important. Except for trading account activities, the capital standards did not account for hedging, diversification, and differences in risk management techniques. Advances in technology and finance allowed banks to develop their own capital allocation models in the 1990’s. This resulted in more accurate calculation of bank capital than possible under Basel I. These models allowed banks to align the amount of risk they undertook on a loan with the overall goals of the bank. Internal models allow banks to more finely differentiate risks of individual loans than is possible under Basel – I. It facilitates risks to be differentiated within loan categories and between loan categories and also allows the application of a capital charge to each loan, rather than each category of loan. F. New Approach to Risk-Based Capital †¢ †¢ †¢ By the late 1990’s, growth in the use of regulatory capital arbitrage led the Basel Committee to begin work on a new capital regime (Basel II) Effort focused on using banks’ internal rating models and internal risk models June 1999: The Basel Committee issued a proposal for a new capital adequacy framework to replace Basel – I. In order to overcome the criticisms of Basel – I and for adoption of the new approach to riskbased capital, Basel II guidelines were introduced. G. Structure of Basel – II Basel – II adopts a three pillar approach: †¢ †¢ †¢ Pillar I – Minimum Capital Requirement (Addressing Credit Risk, Operational Risk Market Risk) Pillar II – Supervisory Review (Provides Framework for Systematic Risk, Liquidity Risk Legal Risk) Pillar III – Market Discipline Disclosure (To promote greater stability in the financial system) II. The Three Pillar Approach The first pillar establishes a way to quantify the minimum capital requirements. The main objective of Pillar I is to align capital the adequacy ratios to the risk sensitivity of the assets affording a greater flexibility in the computation of banks’ individual risk. Capital Adequacy Ratio is defined as the amount of regulatory capital to be maintained by a bank to account for various risks inbuilt in the banking system. The focus of Capital Adequacy Ratio under Basel I norms was on credit risk and was calculated as follows: Capital Adequacy Ratio = Tier I Capital+Tier II Capital Risk Weighted Assets Basel Committee has revised the guidelines in the year June 2001 known as Basel II Norms. Capital Adequacy Ratio in New Accord of Basel II: Capital Adequacy Ratio = Total Capital (Tier I Capital+Tier II Capital) Market Risk(RWA) + Credit Risk(RWA) + Operation Risk(RWA) *RWA = Risk Weighted Assets Calculation of Capital Adequacy Ratio: Total Capital: Total Capital constitutes of Tier I Capital and Tier II Capital less shareholding in other banks. Tier I Capital = Ordinary Capital + Retained Earnings Share Premium – Intangible assets. Tier II Capital = Undisclosed Reserves + General Bad Debt Provision+ Revaluation Reserve+ Subordinate debt+ Redeemable Preference shares Tier III Capital: Tier III Capital includes subordinate debt with a maturity of at least 2 years. This is addition or substitution to the Tier II Capital to cover market risk alone. Tier III Capital should not cover more than 250% of Tier I capital allocated to market risk. A. First Pillar : Minimum Capital Requirement B. Types of Risks under Pillar I . Credit Risk Credit risk is the risk of loss due to a debtor’s non-payment of a loan or other line of credit (either the principal or interest (coupon) or both). Basel II envisages two different ways of measuring credit risk which are standarised approach, Internal Rating-Based Approach. The Standardised Approach The standardized approach is conceptually the same as the present Accord, but is more ri sk sensitive. Under this approach the banks are required to use ratings from External Credit Rating Agencies to quantify required capital for credit risk. The Internal Ratings Based Approach (IRB) Under the IRB approach, different methods will be provided for different types of loan exposures. Basically there are two methods for risk measurement which are Foundation IRB and Advanced IRB. The framework allows for both a foundation method in which a bank estimate the probability of default associated with each borrower, and the supervisors will 5 supply the other inputs and an advanced IRB approach, in which a bank will be permitted to supply other necessary inputs as well. Under both the foundation and advanced IRB approaches, the range of risk weights will be far more diverse than those in the standardized approach, resulting in greater risk sensitivity. 2. Operational Risk An operational risk is a risk arising from execution of a company’s business functions. As such, it is a very broad concept including e. g. fraud risk, legal risk, physical or environmental risks, etc. Basel II defines operational risk as the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events. Although the risks apply to any organization in business, this particular risk is of particular relevance to the banking regime where regulators are responsible for establishing safeguards to protect against systematic failure of the banking system and the economy. Banks will be able to choose between three ways of calculating the capital charge for operational risk – the Basic Indicator Approach, the Standardized Approach and the advanced measurement Approaches. 3. Market Risk Market risk is the risk that the value of a portfolio, either an nvestment portfolio or a trading portfolio, will decrease due to the change in value of the market risk factors. The four standard market risk factors are stock prices, interest rates, foreign exchange rates, and commodity prices. The preferred approach is VAR(value at risk). C. The Second Pillar : Supervisory Review Process Supervisory review process has been introduced to ensure not only that banks have adequate capital to support all th e risks, but also to encourage them to develop and use better risk management techniques in monitoring and managing their risks. The process has four key principles – a) Banks should have a process for assessing their overall capital adequacy in relation to their risk profile and a strategy for monitoring their capital levels. b) Supervisors should review and evaluate bank’s internal capital adequacy assessment and strategies, as well as their ability to monitor and ensure their compliance with regulatory capital ratios. c) Supervisors should expect banks to operate above the minimum regulatory capital ratios and should have the ability to require banks to hold capital in excess of the minimum. ) Supervisors should seek to intervene at an early stage to prevent capital from falling below minimum level and should require rapid remedial action if capital is not mentioned or restored. D. The Third Pillar : Market Discipline Market discipline imposes strong incentives to banks to conduct their business in a safe, sound and effective manner. It is proposed to be effected through a series of disclosure requirements on capital, risk exposure etc. so that market participants can assess a bank’s capital adequacy. These disclosures should be made at least semiannually and more frequently if appropriate. Qualitative disclosures such as risk management objectives and policies, definitions etc. may be published annually. 6 III. Capital Arbitrage and Core Effect of Basel II Regulatory arbitrage is where a regulated institution takes advantage of the difference between its real (or economic) risk and the regulatory position. Securitization is the main means used by Banks to engage in Regulatory Capital Arbitrage. Example of Capital Arbitrage is given below: A. Capital Arbitrage †¢ Assume a bank has a portfolio of commercial loans with the following ratings and internally generated capital requirements – AA-A: 3%-4% capital needed – B+-B: 8% capital needed – B- and below: 12%-16% capital needed Under Basel I, the bank has to hold 8% risk-based capital against all of these loans To ensure the profitability of the better quality loans, the bank engages in capital arbitrage, it securitizes the loans so that they are reclassified into a lower regulatory risk category with a lower capital charge Lower quality loans with higher internal capital charges are kept on the bank’s books because they require less risk-based capital than the bank’s internal model indicates. †¢ †¢ †¢ B. Bank Loan Rating under Basel – II Capital Adequacy Framework †¢ On April 27, 2007, the Reserve Bank of India released the final guidelines for implementation of the New Capital Adequacy Framework (Basel II) applicable to the Banking system of the country The new framework mandates that the amount of capital provided by a bank against any loan and facility will be based on the credit rating assigned to the loan issue by an external rating agency. This means that a loan and a facility with a higher credit rating will attract a lower risk weight than one with a lower credit rating. †¢ †¢ Illustration of capital-saving potential by banks on a loan of Rs 1000 million Rating Basel I Basel II Capital Saved (Rs Long Short Risk Capital Risk Capital Million) Term Term Weight Required* Weight Required Rating Rating (Rs Million) (Rs Million) AAA P1+ 100% 90 20% 18 72 AA P1 100% 90 30% 27 63 A P2 100% 90 50% 45 45 BBB P3 100% 90 100% 90 0 BB P4 P5 100% 90 150% 135 (45) below Unrated Unrated 100% 90 100% 90 0 *Capital required is computed as Loan Amount ? Risk Weight ? 9% C. Effect of Basel – II on Bank Loan Rating †¢ †¢ Banks would either prefer that the Borrower should get itself rated, or, It would prefer that the borrowing institution should pay a higher rate of interest to compensate for the loss. 7 To substantiate the above fact, following example is taken in respect of a strong company: Loan of Rating AAA is taken of Rs 100 Crores @ 12% interest rate Capital Adequacy Rating Risk % Capital Required Opportunity Ratio (Rs Crores) Interest lost by the Bank (Rs Crores) C. A. R. Unrated 100% 9. 00 1. 08 C. A. R. New 20% 1. 80 0. 22 Total Opportunity Interest lost by the Bank (Rs Crores) 0. 86 Hence, Banks would resort to the above-mentioned measures in order to reduce or curb this loss on opportunity interest. Worse affected by this action taken by Banks would be the weaker companies. They would either be charged a higher rate of interest on loans to compensate for the loss or would alternatively have to approach another bank charging a lower rate of interest. The ideal solution to this problem would be that a weaker company should get itself rated and also take steps in order to have a better credit rating. Credit Rating is an evaluation of credit worthiness of a person, company or instrument. Thus, it indicates their willingness to pay for the obligation and the net worth. IV. Basel II in India A. Implementation The deadline for implementing the base approach of Basel II norms in India, was originally set for March 31, 2007. Later the RBI extended the deadline for Foreign banks in India and Indian banks operating abroad to meet those norms by March 31, 2008, while all other scheduled commercial banks were to adhere to the guidelines by March 31, 2009. Later the RBI confirmed that all commercial banks were Basel II compliant by March 31, 2009. Keeping in view the likely lead time that may be needed by the banks for creating the requisite technological and the risk management infrastructure, including the required databases, the MIS and the skill up-gradation, etc. , RBI has proposed the implementation of the advanced approaches under Basel II in a phased manner starting from April 1, 2010 B. Impact on Indian Banks Basel II allows national regulators to specify risk weights different from the internationally recommended ones for retail exposures. The RBI had, therefore, announced an indicative set of weights for domestic corporate long-term loans and 8 bonds subject to different ratings by international rating agencies such as Moody’s Investor Services which are slightly different from that specified by the Basel Committee (Table 1). C. Impact on various elements of the investment portfolio of banks The bonds and debentures portfolio of the banks consist of investments into higher rated companies, hence the corporate assets measured using the standardised approach may be exposed to slightly lower risk weights in comparison with the 100 per cent risk weights assigned under Basel I. The Indian banks have a large short-term portfolio in the form of cash credit, overdraft and working capital demand loans, which were un-rated, and carried a risk weight of 100 per cent under the Basel I regime. They also have short-term investments in commercial papers in their investment portfolio, which also carried a 100 per cent risk weight. The RBI’s capital adequacy guidelines has prescribed lower risk weights for short-tem exposures, if these are rated (Table 2). This provides the banks with an opportunity to benefit from their investments in commercial paper (which are typically rated in A1+/A1 category) and give them the potential to exploit the proposed short-term credit risk weights by obtaining short-term ratings for exposures in the form of cash credit, overdraft and working capital loans. The net result is that the implementation of Basel II provided Indian banks with the opportunity to significantly reduce their credit risk weights and reduce their required regulatory capital, if they suitably adjust their portfolio by lending to rated but strong corporate and increase their retail lending. According to some reports, most of the Indian banks who have migrated to Basel II have reported a reduction in their total Capital Adequacy Ratios (CARs). However, a few banks, those with high exposures to higher rated corporate or to the regulatory retail portfolio, have reported increased CARs. However, a recent study by New Delhi-based industry lobby group Assocham has concluded that Capital Adequacy Ratio (CAR) of a group of commercial banks, which were part of the study improved to 13. 48% in 2008-09 from 12. 35% in 2007-08, due to lower risk weights, implementation of Basel II norms and slower credit growth. 9 D. Bad debts and requirement of additional capital In this context, the situation regarding bad debts and NPA’s is very pertinent. The proportion of total NPAs to total advances declined from 23. 2 per cent in March 1993 to 7. per cent in March, 2004. The improvement in terms of NPAs has been largely the result of provisioning or infusion of capital. This meant that if the banks required more capital, as they would to implement Basel II norms, they would have to find capital outside of their own or the governmentâ₠¬â„¢s resources. ICRA has estimated that, Indian banks would need additional capital of up to Rs. 12,000 crore to meet the capital charge requirement for operational risk under Basel II. Most of this capital would be required by PSBs Rs. 9,000 crore, followed by the new generation private sector banks Rs. 1,100 crore, and the old generation private sector bank Rs. 750 crore. In practice, to deal with this, a large number of banks have been forced to turn to the capital market to meet their additional regulatory capital requirements. ICICI Bank, for example, has raised around Rs. 3,500 crore, thus improving its Tier I capital significantly. Many of the PSBs, namely, Punjab National Bank, Bank of India, Bank of Baroda and Dena Bank, besides private sector banks such as UTI Bank have either already tapped the market or have announced plans to raise equity capital in order to boost their Tier I capital. E. Government Policy on foreign investment The need to go public and raise capital challenged the government policy aimed at restricting concentration of share ownership, maintaining public dominance and limiting foreign influence in the banking sector. One immediate fallout was that PSBs being permitted to dilute the government’s stake to 51 per cent, and the pressure to reduce this to 33 per cent increased. Secondly, the government allowed private banks to expand equity by accessing capital from foreign investors. This put pressure on the RBI to rethink its policy on the ownership structure of domestic banks. In the past the RBI has emphasised the risks of concentrated foreign ownership of banking assets in India. Subsequent to a notification issued by the Government, which had raised the FDI limit in private sector banks to 74 per cent under the automatic route, a comprehensive set of policy guidelines on ownership of private banks was issued by the RBI. These guidelines stated, among other things, that no single entity or group of related entities would be allowed to hold shares or exercise control, directly or indirectly, in any private sector bank in excess of 10 per cent of its paid-up capital. F. Threat of foreign takeover There has been growing pressure to consolidate domestic banks to make them capable of facing international competition. Indian banks are pigmies compared with the global majors. India’s biggest bank, the State Bank of India, which accounts for onefifth of the total banking assets in the country, is roughly one-fifth as large as the world’s biggest bank Citigroup. Given this difference, even after consolidation of 10 omestic banks, the threat of foreign takeover remains if FDI policy with respect to the banking sector is relaxed. Not surprisingly, a number of foreign banks have already evinced an interest in acquiring a stake in Indian banks. Thus, it appears that foreign bank presence and consoli dation of banking are inevitable post Basel II. V. Conclusion A. SWOT Analysis of Basel II in Indian Banking Context Strenghts †¢ †¢ Aggression towards development of the existing standards by banks. Strong regulatory impact by central bank to all the banks for implementation. Presence of intellectual capital to face the change in implementation with good quality. †¢ †¢ †¢ Weaknesses Poor Technology Infrastructure Ineffective Risk Measures Presence of more number of Smaller banks that would likely to be impacted adversely. †¢ Opportunities †¢ †¢ Increasing Risk Management Expertise. Need significant connection among business,credit and risk management and Information Technology. Advancement of Technologies. Strong Asset Base would help in bigger growth. †¢ †¢ Threats Inability to meet the additional Capital Requirements Loss of Capital to the entire banking system, due to Mergers and acquisitions. Huge Investments in technologies †¢ †¢ †¢ B. Challenges going ahead under Basel II †¢ The new norms will almost invariably increase capital requirement in all banks across the board. Although capital requirement for credit risk may go down due to adoption of more risk sensitive models – such advantage will be more than offset by additional capital charge for operational risk and increased capital requirement for market risk. This partly explains the current trend of consolidation in the banking industry. Competition among banks for highly rated corporates needing lower amount of capital may exert pressure on already thinning interest spread. Further, huge implementation cost may also impact profitability for smaller banks. The biggest challenge is the re-structuring of the assets of some of the banks as it would be a tedious process, since most of the banks have poor asset quality leading to significant proportion of NPA. This also may lead to Mergers Acquisitions, which itself would be loss of capital to entire system. The new norms seem to favor the large banks that have better risk management and measurement expertise, who also have better capital adequacy ratios and geographically diversified portfolios. The smaller banks are also likely to be hurt by the rise in weightage †¢ †¢ †¢ 11 of inter-bank loans that will effectively price them out of the market. Thus, banks will have to re-structure and adopt if they are to survive in the new environment. †¢ Since improved risk management and measurement is needed, it aims to give impetus to the use of internal rating system by the international banks. More and more banks may have to use internal model developed in house and their impact is uncertain. Most of these models require minimum historical bank data that is a tedious and high cost process, as most Indian banks do not have such a database. The technology infrastructure in terms of computerization is still in a nascent stage in most Indian banks. Computerization of branches, especially for those banks, which have their network spread out in remote areas, will be a daunting task. Penetration of information technology in banking has been successful in the urban areas, unlike in the rural areas where it is insignificant. An integrated risk management concept, which is the need of the hour to align market, credit and operational risk, will be difficult due to significant disconnect between business, risk managers and IT across the organizations in their existing set-up. Implementation of the Basel II will require huge investments in technology. According to estimates, Indian banks, especially those with a sizeable branch network, will need to spend well over $ 50-70 Million on this. Computation of probability of default, loss given default, migration mapping and supervisory validation require creation of historical database, which is a time consuming process and may require initial support from the supervisor. With the implementation of the new framework, internal auditors may become increasingly involved in various processes, including validation and of the accuracy of the data inputs, review of activities performed by credit functions and assessment of a bank’s capital assessment process. Pillar 3 purports to enforce market discipline through stricter disclosure requirement. While admitting that such disclosure may be useful for supervisory authorities and rating agencies, the expertise and ability of the general public to comprehend and interpret disclosed information is open to question. Moreover, too much disclosure may cause information overload and may even damage financial position of bank. Basel II proposals underscore the interaction between sound risk management practices and corporate good governance. The bank’s board of directors has the responsibility for setting the basic tolerance levels for various types of risk. It should also ensure that management establishes a framework for assessing the risks, develop a system to relate risk to the bank’s capital levels and establish a method for monitoring compliance with internal policies. The risk weighting scheme under Standardised Approach also creates some incentive for some of the bank clients to remain unrated since such entities receive a lower risk weight of 100 per cent vis-a-vis 150 per cent risk weight for a lowest rated client. This might specially be the case if the unrated client expects a poor rating. The banks will need to be watchful in this regard. †¢ †¢ †¢ †¢ †¢ †¢ †¢ †¢ We can conclude by saying that the Basel II framework provides significant incentives to banks to sharpen their risk management expertise to enable more efficient risk-return tradeoffs, it also presents a valuable opportunity to gear up their internal processes to the 12 international best standards. This would require substantial capacity building and commitment of resources through close involvement of the banks’ Top Management in guiding this arduous undertaking. Notwithstanding intense competition, the expansionary phase of the economy is expected to provide ample opportunities for the growth of the banking industry. The growth trajectory, adherence to global best practices and risk management norms are likely to catapult the Indian Banks onto the global map, making them a force to reckon with. VI. References 1. The Evolution to Basel II by Donald Inscoe, Deputy Director, Division of Insurance and Research, US Federal Deposit Insurance Corporation. 2. Basel II – Challenges Ahead of the Indian Banking Industry by Jagannath Mishra and Pankaj Kumar Kalawatia. 3. Basel II Norms and Credit Ratings by CA Sangeet Kumar Gupta. 4. The Business Line Magazine. 5. The Chartered Accountant – Journal of the Institute of Chartered Accountants of India. 6. www. bis. org 7. www. rbi. org. in 8. www. wikipedia. org 9. www. google. com VII. The Technical Paper Presentation Team Name of Member Email ID’s rahulscsharma@icai. org tulsyan. abhishek@yahoo. co. in sikha. kedia0311@gmail. com ca. gouravmodi@gmail. com Praveen_did@yahoo. com 1. Rahul Sharma 2. Abhishek Tulsyan 3. Sikha Kedia 4. Gourav Modi 5. Praveen Didwania 13