Influence Taylor’s Scientific Management Theory

Influence Taylors Scientific Management Theory creative activityThe modern world has been marked by specialized centering that is characterized by effectual planning methods in narrate to attain certain objectives, division of wear down which has served to increase specializations and innovations in last places, and a semiformalized int seasonction between the employees and their managers in their spurt places. These formal manifestations can be attributed to the twentieth nose candy from the works of Taylor who came up with the concepts of scientific wariness. Taylor has been accorded the legacy as the founder of scientific watchfulness principles. He was a mechanical engineer and his works served to provide efficiency in the management of industries which at the time had no formal management and were characterized by confused anomalies (Taylor, 1911, p.64). The players came up with their own decisions on how the tasks were going to be accomplished in the factories. Thi s was however changed by Taylor by means of development of scientific management. He sought to improve the workers productivity in their aras of work.At discordant times he was criticized for destroying the workers esprit de corps and turning them into machines. This went to an extent of workers downing their tools at Watertown Arsenal which led to the House of Re fork outatives Committee conducting an investigation into his works so as to establish the truth. It was concluded that his concepts of scientific management were a good tool for the management of administrations but at the same time offered the managers with increased power which had no checks and balances. This led to the ban of his concepts of scientific management by the Senate at that time. This was after a survey showing that his methods received a senior high level of hatred from the operative population. The survey showed that scientific management did not put into consideration the workers social rents in their beas of work and it failed to appreciate the differences that existed between the working populations in each industry. In addition, the scientific management concepts viewed the workers as ignorant and in that respectfore did not gull into consideration their contributions in terms of work related suggestions and ideas (Taylor, 1911, p.65). However, after divers(a) improvements into these concepts it has come in to be productive in the surrender twenty-four hours running of organizations. This essay discusses the Taylors scientific management and how it has influenced the modern day business practices.Historical origins of scientific managementThe nineteenth century factory arrangement manifested itself-importance in lack of formal management, unofficial relations among the workers and horizontal with their employers and casual logical arguments with no formal arrangements where the filler just leased a group of men in the industries and could fire them if he dee med it fit due to their inability to work or for not following his directions. A need arose by the late decade of the 19th century as competitions between different factories went into the rise, emergence of ameliorate technologies in the factories and formations of trade unions that pressurized the factories to improve the working conditions of workers in the factories or risk industrial actions against them. The goernment had also realized the efforts in the factories and wanted to reap maximum benefits (Taylor, 1911, p.12). This therefore called for improvements in the organization and management of these institutions. This was the degree that Taylor established himself with his novel ideas of organizational management and various technical innovations. For instance, he devised a stopwatch that was used for timing the workers during the working hours so as to retard their best possible times.Taylor had a brief cargoner in engineering after which he went into consultancy servic es for various industries. He vigorously advocated the coat of authoritative management by the factory managers (Taylor, 1911, p.17). He introduced time studies to measure the workers practiceance, piece- consider systems that served to instill obedience in the workers and former(a) product systems that provided the managers with the capability of knowing what was happening on the ground. He diffused his thoughts and coined the term scientific management which was somehow metaphorical. He proposed that he had invented principles of management that could be applied universally to replace what was known as the rule of thumb methods. His book became a winner and was embraced by many during those times. This period of development of scientific management became known as the progressive era in the US (1890-1920). It was a period that had many reforms which were meant to overcome the occupations that had been created by the just ended industrial revolution. This era also experienced i ts problems. Among them was lack of formal training for the business leaders in ways of running the day to day activities of their institutions and workers performed their duties due to internal fears of imminent job losses as a result an increase in the industrial out put or due to inefficient management systems in the organizations (Taylor, 1911, p.4). This resulted to poor relationships between the workers and their employers which ultimately caused a reduction in the efficiency in the industries. The then president of the US, Roosevelt yet went further to call on the factories to increase their efficiency in exertion so as to be at par or ahe3ad with new(prenominal) competing nations. This ultimately led to emergence of the scientific management movement.Taylor and scientific management movement later his works at Philadelphia, Taylor moved to Bethlehem Company which dealt with steel and continued exploring his ideas. He was not alone in proposing the scientific management b ut there were other players who set in to stream roue the concepts. For instance, accord to Shenhav (1999, p. 94), there was Brandeis who was an attorney and later became a Supreme Court justice. Later there were others standardized Frank and Gilbreth who were subject to conduct studies on the tender motion while doing work with an intention of finding ways that could add to increase workers efficiency during working hours.Taylors principles of scientific managementAfter systematic analysis of his experimental works, Taylor came up with four principles which lay the foundation for scientific management. The premier(prenominal) mingled finding an alternative method to take over the rule of thumb practices of management. The alternative was to be scientific and would provide a chance for the managers to be in a position to analyze the problem facing management in their organizations. The use of a scientific approach was to put into use the systematic experiments. He believed the application of these experiments would come up with a solution to the problems faced in management and during the touch of production. According to Locke (1982, p.50), Taylor has received acclaimed fame for his ideas that a scientific approach can be applied in the process of managerial decision making. The uphold principle involved scientifically selecting, offering training sessions and providing work development to severally worker. This was as opposed to the former methods that involved disorganized management and leaving the workers to rule themselves as sound as train themselves on various duties in the factories.By application of this principle, Taylor noted that the passing qualified mortal volition occupy the top positions in the organizations and thusly will lead the others in a systematic and efficient manner. By application of systematic management, a payment system was developed that considered the amount of output the worker had as well as the workers efficien cy in production of tonicity goods and services. This principle increased efficiency in work places and improved the system of management. The third principle involved the managers developing formal working relations through establishing teamwork to ensure that the methods developed scientifically were being adhered to by the work force. To develop this principle, Taylor measured the workers performance with stop watch and motion studies in effectuate to come up with an efficient process that would lead to accomplishments of the work tasks in good time. His experiments were crucial in determining the quantity of work that a hard working man could perform in a day (Taylor, 1911, p.23). This was to do away with the tendency of workers to perform their duties slowly in the factories. His experiments would indicate the standards that are to be pass ond by the workers so as to increase performance.The fourth and final principle involved ensuring equal division of work between managers and their employees. By so doing, the managers would utilize the principles of scientific management in the planning of duties in their organizations while the workers on their side would actualize the duties in a timely manner. It is worth noting that these principles were put into use in various factories crosswise the world. Their application usually had a positive effect by enhancing their productivity by three or more times. Taylor had a smashed believe that scientific management would enhance the efficiency in the industries which would then lead to increased wages, production of low cost products and thus improved standards of sustainment for the employees and their families. However, his ideas did not go well with the trade unions which were on the rise during those times to fight for the rights of the factory workers. Due to this, its influence was lowered until the end of the First populace War when it picked up. According to Shenhav (1999, p.68), engineers in the Ford industry were able to standardize their job routines being guided by the principles of scientific management. They were able to increase their production and the Ford gained recognition all over the US for its production of quality motor vehicles.Taylors scientific management had a big influence to the development present day management theories. His ideas influenced two fields of management which are the human resource management sector and the method of accounting departments within an organization. He contributed to cost accounting procedures in the manufacturing industries. While working at Simonds Company he formulated a system of accounting for the company. Later on he perfected his methods approach path up with a standardized costing technique for railroad systems. His ideas formed a foundation for development of techniques for budget control in any organization so as to ensure a free flow of cash for production costs and for payment of wages and salaries. This ensured an improved management in these industries. The second and third principles of the scientific management as discussed above influenced development of human resource management. Other scholars followed these principles to come up with various aspects of human resource like managing by objectives by Drucker which can be traced to the Taylors application of the differential piece rate systems to ensure workers efficiency (Shenhav, 1999, p.34). Taylor receives attribute even to the t distributivelying and development of management courses. He lectured on management at Harvard, therefore shaping the minds of future business owners and managers who apply his teachings up to the present day world.Criticisms of scientific managementpatronage scientific management improving production even up to three times, it also had its own setbacks. It was accused to guide led to monotony of worker lead to workers being bored at many times. The concepts also perceived man as a machine that achieved maximu m satisfaction through monetary rewards (Locke, 1982, p.35). His rate cutting ideas could as well be utilized by cruel managers to mistreat their employees without many benefits to them. There was an up rise against scientific management by workers leading to strikes. As a result, parts of it like the use of stop watches by the managers to time their workers were banned.Scientific management and its influence on modern day business practicesTaylor was of the view that employees needed to be supervised at all times to ensure that they fully performed their tasks and productivity of the factories went on the rise. His critics however disapproved the idea of pickings the workers to be like machines without psychological odourings. The disapproved the idea that human ambitions are highly motivated by the rewards they receive in form of wages. To prove their point, the critics developed what is termed as organizational behavior that was meant to counter the ideas of Taylor. This took pl ace in the 1930s after experiments were carried out to determine what really influenced the workers morale and their efficiency in production. The Hawthorne experiments proved otherwise from what Taylor had postulated. In one specific case, a read was conducted to find out what increased the productivity of workers in the Hawthorne constructs factory (Locke, 1982, p.70). It was noted that an increase in lighting in the workshops was able to have an increase in productivity as workers did their work in well lit areas. The negative had been hypothesized to be trustworthy but unfortunately it was not. This left questions unanswered on what really caused the increase in productivity.Left with no other options, the experimenters had to seek technical aid from Harvard University where various professionals turned up. The group consisted of sociologists, psychologists who were headed by the famous clinical psychologist Mayo Elton and anthropologists. These specialists were able to conc lude that what led to the increase in production was due to the presence of supervisors passim the period the studies were being carried out. This observation became to be known as the Hawthorne effect and it was significant to human relations in work places and led to improvement of the study of organizational behavior (Wren, 2005, p.279). Various other studies have been carried out after Hawthorne experiments to try and discover the real factor behind human motivation. In other experiments, McGregor postulated a theory commonly referred to as Theory X and Theory Y to distinguish between the factors influencing human motivation. According to Theory X, the workers got their motivation from rewards in terms of money that they received after the job they had done while Theory Y observed that men gets their motivations from an inward desire to attain self fulfillment in any task that they are accorded.Unlike Taylors scientific management, this theory was able to acknowledge the abilit y of people to have an inner lease that compound their capacity to do work sort of than just focusing on what they received as wages and salaries. Thus the social perspectives of a person started gaining recognition in workplaces in order to enhance productivity (Wren, 2005, p.267). The managers of the factories started considering the social welfare of their workers while in work stations and eventually relations alter in the factories. This brought about team spirit and reliance on one another to attain a common objective. Several welfare organizations that were involved in fighting for the rights of the workers were formed and which are still there in the 21st century world. Taylor with his scientific management therefore laid a foundation well-nigh which various other studies have been conducted to improve the situation of the workers in their work places while at the same time ensuring that productivity is maintained to ensure success of organizations and businesses. Organi zational management has gained recognition in todays world and managers are professionals with skilled knowledge in the process of management. Major CEOs in different organizations must have attained a certain higher(prenominal) level of knowledge and have experience in management.Taylors scientific management formed a foundation for trading operations research which is present today in various organizations. Both operations research and scientific management aims at increasing efficiency in the workers operations through the application of scientific means and systematic analysis so as to come up with a valid conclusion. According to Gass (2005, p.19), the proposers of scientific management like Taylor himself, Gilbreth and Gantt were the founders of the process of operations research. In fact, some of the techniques they applied in their studies to provide efficiency are still in use even up to date. For example, Gantt in his studies used a chart that involved planning time and t asks to be performed so as to achieve maximum productivity. It came to be known as the Gantt chart and it is still in use today especially in the project management areas. Despite operations research gaining growth as a branch on its own, it incorporates Taylors principles in its application. It continues to apply scientific methods with an aim of improving efficiency which is attributed to Taylors scientific management.Taylors scientific management gained recognition in the US and rough the world. His book The Principles of Scientific Management was a hit and a success and was sold the world over. His principles were put into test by many managers in their factories so as to increase efficiency. His book was translated to different languages and his influence was now tangle outside the US. The Japanese led by Takuo Godo utilized some of Taylors principles to test the productivity of Japanese workers during the Osaka Efficiency Exhibition. Takuo was able to point out that the work ers in Britain were 5.3 times more productive than those in Japan while the American worker was cardinal times more that of the Japanese worker. In their pursuit for increased efficiency, the Japanese had to apply some of Taylors principles (Wren, 2005, p.289). Taylors work went as far to influence the Toyota production system which ensured that quality products were produced while at the same time increasing the efficiency of their workers. The application of scientific management enhanced Toyotas production system leading to their success. These principles were integrate with novel ideas as time went by to furnish them so as to reap their full benefits. The success of Toyota is seen even today due to their high exports of their automobiles to various countries all over the world.In the 21st century, most of the activities that occur in work places base their foundation to Taylors scientific management. The cars we are driving, the hospitals we get medication from and even in the food eateries that we frequently visit have in one way or another been influenced by the principles postulated by Taylor. Their functioning has been streamlined into enhanced efficiency through these principles. Scientific management brought a revolution to management systems which have them evolved with time to accommodate new ideas and other changing variables in the workplaces. Work places have become areas of specializations where only those with specific skills and experiences can perform a certain task. Given such facts, division of labor is a common vaunt in todays society and this has served to improve on innovative ideas and effective production (Wren, 2005, p.293). Competition has gone on the rise for the few job opportunities that are operable unlike previously when the labor force was sometimes lacking.As a result workers have continued increasing their knowledge into in order to wait their positions or even be promoted to higher posts. Companies have learnt to apply scientific methods in solving any problem that they may be facing rather than by use of a rule of thumb. For instance, it has become a common venture for companies to conduct market surveys before and during a release of a new product in the market. Once a company intends to release a product to the market, it ventures into the anticipated market to find their views and opinions on the said product. The opinions are analyse scientifically and viable conclusions are derived. The conclusions are then incorporated into their strategic objectives and planning is taken to take into considerations the conclusions. This has served to increase the efficiency of production and improving the companys profits. A failure in the management to conduct such surveys or to embrace the reflected opinions would lead to either customer dissatisfaction or production of low quality products. When this happens, customers will shy away from the products hence sales will be minimal and thus the profits. W ith the current competition in the market in this 21st century such a company will be edged out of the race for customers and will definitely fall out of the market and close down. This all the way illustrates that although Taylors principles were postulated over a century ago, their effects are still being felt in the running of day to day activities of various institutions.In present days industrial processes, Taylors principles also come to play an important role. Taylor had studied the appropriate scientific designs for the tasks that the workers were performing so as to ensure they never were over worked nor were they underworked to unproductive levels. In addition, Taylor proposed that the workers should be selected scientifically according to a persons skills so as to perform those tasks that the workers are in a position biologically to perform and handle well. The workers who best adopted to their positions and worked with high efficiency were rewarded with high wages in o rder to motivate them to repeat the same actions (Gass, 2005, p.21).Presently, this principle has continued to be used in nearly all organizations. As a result, they have established a human resource department that is tasked with the process of enlisting. The department first announces any vacant position in their institutions through the various media and invites qualified persons to tender for the positions. The recruits are then taken through a thorough recruitment process that involves vetting their skills and abilities as may be illustrated by the experiences they have. This process can be equated to the scientific selection of workers that were proposed by Taylor and his followers. Finally, the best man for the job takes it thus securing employment in the said company. Taylor in determining the payment to be given to the workers in wages and work incentives proposed a piece-rate system. This was to award any worker more wage if they increased production outputs and also produ ced quality products. A very similar situation is applied presently where even in civil service the amount of payment depends on the years of experience in service and also on the skills and knowledge that you process which clearly distinguishes you from the rest. Thus the higher the experience and level of learning the higher the salaries will be.Secondly, in todays institutions the human resource department has established a complex reward system that compensates the workers for their improved output in production. The various reward system used today are like fully paid holidays for employees, pay rises for good performing workers , scholarships to result high education, paid leaves among a variety of others. This has ensured increased competition between departments in an organization to raise their production levels so as to enjoy the enticing rewards. Psychologically, human behavior can be reinforced through positive reinforcements and vice versa. The human resource manage rs are thus able to utilize this to positively reinforce the behavior of ensuring increase in production in their organizations through the rewards. The application of these ideas has led to improved production within the work places as the workers are motivated to perform their duties to perfection. This has led to production of quality products into the market that reaches the thresholds of customer satisfaction.It is also important to note of the Fordism theory which bases its concepts on the scientific management. It was employed in mass production and incorporated the concepts of a moving assembly line with the ideas of Taylors of piece rate system and division of labor (Gass, 2005, p.30). This theory proposed for a characteristic between the skilled processes of production and the unskilled ones. This theory was instrumental in shaping the industrial process of mass production of various commodities which require line production like motor vehicles. However, this theory also contained several anomalies as contained by the scientific management like not allowing the workers to give their views and also according more importance to the machines than the human beings who are operating them. This theory however, rewards the workers with high wages for their increased production. This theory also accords the employers with total ownership and control to the work force and therefore could be used to harass the work force.Scientific management as presented by Taylor offered a chance for scientific training and education of all the workers with an intention of increasing their on hand skills and basic understanding of their working environment. He conducted researches to ensure maximum potential of the workers were utilized in performing their tasks. In modern times, this has continued taking place in various institutions. It has become increasing necessary for continued education due to the changing patterns and trends in the production industries (Gass, 2005, p.34). There is improvement in technology like the use of computers in performing tasks that were initially performed manually. Some of the machines that were once used in the processes of production and other tasks in the organizations have become redundant thus necessitating the use of a different and more complex machine. For example, not long ago were typewriters a common feature in offices for production of written materials.Currently, it is quite hard to notice any typewriter in use in any office across the country. This is due to rise in computer usage which have rendered them redundant. If the office worker had no relevant knowledge of computer usage, he/she will be forced to take classes in order to learn how to use the same machine. The same thing is happening in big production companies where large machines are acquired that have different usage and thus necessitating the workers handling it to undergo a further training. After noticing this tendency, the human resource departments have been tasked with ensuring their workers undergo on job trainings to increase their knowledge and remain relevant in the market. Several companies offer free scholarships to their deserving employees to pursue higher education after which they are promoted in their duties to higher positions. Other types of training are conducted like inviting a consultant who will facilitate the process of learning in formal seminars and meetings. Whichever type the human resource decides is beneficial to their company the aim is to increase the workers scientific knowledge and education.The scientific management propagates for the idea of division of labor equally among the workers and their managers. This would ensure that there is mutual cooperation between the workers and managers and each is relying on the other for accomplishment of certain duties in their organization (Taylor, 1911, p.13). This builds formal and official relations with respect which ensures that the tasks gi ven to each worker is performed and in good time. A team spirit is cultivated within these organizations and they are able to work together as one to achieve common objectives. In modern world, this principle has been expounded and applied resulting into increased performance and enhanced efficiency in doing work. The social aspects of a human being are catered for like the need to effectively communicate ones feelings about a certain procedure in any institution. Management has changed to democratic type where various views of each individual are incorporated into the institutions planning. The institutions frequently hold meetings where each and everyone is given a chance to air their views concerning anything that may be affecting them or even to commend a certain process being used by their organization. This has served well to increase communication in the organizations.Communication is an important process to any organization. It serves to pass important messages from managers down the organizational hierarchy up to the subordinates. Communication as a process serves to hold the organization together. It builds team work across the various departments in an organization and leads to attainment of strategic objectives and hence meeting their mission and vision. It is therefore important to have improved communication for an organization ion order to reap maximum benefits from the employees. Effective communication in an organization boosts employees morale and increases their productivity (Busch, 1980, p.98). Communication which was once referred to as a soft skill in business enterprises has turned to have impacts for the business which are hard and with dire consequences. Failure to establish effective communication will lead to dissatisfaction among employees leading to high employee turnover in the organization, there is a rise in the number of employees who dont report to work as expected due to low morale, the customers will feel dissatisfied due to receiving of poor services from the dissatisfied employees and this will lead to low quality products being produced which are not up to the standards required in the market. In addition it will lead to lack of innovations in the business which is harmful to development.ConclusionIn conclusion, Taylors scientific management has served to shape the behaviors witnessed in todays organizations. However, various improvements to Taylors principles have been done by various other scholars. For example, Henry Fayol was able to integrate the social aspects of workers in to the principles. For the success of any organization, effective leadership is critical. It is for this reasons that effective managers are sought for by many institutions in order to succeed and pull through the high competition that have been witnessed in the present world. How well a leader is able to influence the team that he/she is leading will either lead to the success or to the failure of the organizations. In ord er for a leader to be able to lead, he/she must gain and apply power in order to see that work is performed to the given standards. They work at reinforcing their own organizational positions while at the same time striving to achieve the broad and strategic objectives of their organizations. Modernization and formations of workers union has served to shape the scientific principles as proposed by Taylor. With this in mind it is worth to note that Taylors scientific management principles although proposed over a century ago are being felt even in the modern day practices in institutions.

Gender Representation in the Media

Gender Representation in the MediaA comparison of representation in the midst of sexual activitys and how unlike genders ar portrayed in childrens mediaIntroductionI consecrate chosen this EPQ topic because I fatalityed to address possible issues in the world we suffer in today. Its no secret that in society sexism, low representation and/or bad representation of both genders run wild and the issues vastly stir males and females. Representation is the description or portrayal of someone or something in a particular way, whether that be good or bad. This essay will explore the differences and similarities of the way males and females atomic number 18 portrayed in childrens media, and nonetheless dig thickseter into the intersectional theory which is the view that people experience oppression in variable configurations and in varying degrees of intensity, for example, that be the incident they be a member of the LGBT community or a POC (Person of colour).For this essay , I define childrens media as Television Shows (Animation and Sitcoms) and Films. Originally, I included childrens books as one of the areas I would analyse but I decided against this idea as I felt I was working with too often and I wouldnt be able to complete my project on time. I knew that focusing on too service existencey things wouldnt allow me to work to my full index and on the separate hand, its a lot easier to watch something than it is to read something and fully comprehend it. I give way many motion-picture shows and shows that I have used to plinth my research, for example I have taken a selection of the most popular shows (based on opinions from online critics and some factual evidence also) from the Networks dedicated to the ages of 8-16 so CN ( animated cartoon Network) and its sis channels affiliated with it and Disney, along with their related channels. Some of these programs include the popular programs like Steven Universe, Gravity Falls and Spongebob Sq uarepants.Its no use just watching these shows of course, I aim to gain ground detailed notes sho net profitg the percentages of male and female character appearances in episodes, how certain genders and minorities are portrayed and to debate the question of which gender in reality receives the best and most realistic representation. For example, some questions I have asked myself during my research include, are there any obvious stumps that stand out to you and how do they reconstruct you feel? By doing this I believe I ordure form a solid opinion on the shows I have watched. However, its important that my opinions are not one sided so I aim to rightfully argue with myself over the issues and weigh up the overbearings and the negatives in my conclusion.Further more than, I wanted to discover how other people felt about gender representation in childrens media also. It would allow me to bump if people really thought there was an issue and to try and recognise those who beli eved that what their children were watching on television was okay. I have used questionnaires to gather opinions from both parents and children in hope that they will allow me to generalise the opinions further.Television Cartoon NetworkStarting with Turners Cartoon Network I have chosen two programs from the channel, Johnny applaud and Steven Universe.Johnny BravoStarting with Johnny Bravo it premiered on July 14, 1997, making it the earliest show on the Cartoon Network list, and the first season completed production in December of that year. 1The series stars a muscular young man named Johnny Bravo who dons a pompadour hairstyle and an Elvis Presley-like voice. He has a forward, fair sex-chasing personality and the plots typically revolve around him onerous to get a woman that he has targeted throughout the episode to fall in love with him. He is often beaten up or stupefy by his target or companions, or is ditched by them in the end. Almost immediately I believe this sort of program to contain very male chauvinist messages towards both workforce and women. For men, it shows that its normal to lust later young beautiful women and treat them as nothing but sexual objects that you can try and win over. Then, theres also the line of work that the of import character is promoting unrealistic standards for young boys. Adults or older viewers may settle this as a joke do by the creators however I believe young children may comprehend this differently, they may believe this is the proper way to act.Steven UniverseFinally, we have Steven Universe. it premiered on November 4, 2013 as Cartoon Networks first animated series to be solely get tod by a woman, Rebecca Sugar. I think the fact Rebecca Sugar is the first woman to create an animated series says a lot about the show because we can see that a woman is writing women which will lead to more true women characters. It is the coming-of-age story of a young boy named Steven Universe, who lives in the fi ctional town of Beach City with the Crystal Gems Pearl, Garnet, and Amethyst, three magical pityingoid aliens. Steven, who is half-Gem, goes on adventures with his friends and helps the Gems encourage the world from their own kind2(Wikipedia, 2017).I decided to watch Steven Universe instead of other popular CN television shows, for example Adventure Time or We staring(a) Bears because its very different from your usual cartoon. What I mean by that is we have four main characters, three of them are women who sport different body shapes which shows great body representation for women and theres even one character who is coded nigrify, which means that outside of the shows context, she is seen is a black woman3.When watching some of the episodes for the show, I expected to see a lot of good representation for both genders and minorities too. I didnt expect to see any news reports or characters that were LGBT, but if there were, Id expect them to be secondary characters or not tha t important at all. However, I was proved wrong and the show surpassed what I expected.Well start with the very first episode of Steven Universe, Laser uncontaminating Canon. Not even a minute into the episode and 3 out of the 6 characters weve seen are plus size which is very surprising as you dont ordinarily have that many characters that arent just slim or curvy in childrens television shows. Two minutes in and we meet the crystal gems Garnet, Amethyst and Pearl. We see these characters fighting against corrupted beings, not even breaking a sweat. The first impression we have of these women is that they are powerful and that they dont conform to the norm.Amethyst is very relaxed, she lassos the whale and mollifyly says, Sup Steven? while doing a peace sign. From this we can see that shes the laid back one of the group, she doesnt take things too seriously and she likes to have sportsman with what she does. One thing to note is that Amethyst is plus sized, a very deliberate c haracteristic the story boarders have given her. In media, overweight characters (mostly girls) are virtually absent.4 In the Prix Jeunesse study for childrens television in the UK, 431 (63.7%) of the sample were of average weight, 192 (27.4%) of the characters were very thin, and 55 (8.9%) very overweight. 63.7% of all characters represented in British childrens TV are of a normal body range. Females are more often thin, males more often overweight. Out of the female characters 159 (55.2%) are in the normal range, 112 (38.9%) are very thin and 17 (5.9%) are very overweight. 272 male characters (69.9%) are in the normal range, 79 (20.3%) are very thin and 38 (9.8%) are very overweight. 5 This shows that the cartoon is obviously aiming for representation of larger characters and so far, this is good representation.The next character Pearl is then seen, she moves carefully and her strikes are precise as a melodic tune from a piano plays in the background. From this small part we can s ee that Pearl lives up to her gemstone symbolism shes sodding(a) and innocent.DisneyMovies Disney and Pixar For this part of my report, I would like to refer to the studios Disney and Pixar both as Disney. It is my understanding that they are different but fundamentally they stem from the same studio.MulanThe first film we have from Disney is the 1998 classic, Mulan. This film is heavily praised and noted for being a feminist film but why is that? What makes Mulan feminist? The basic plot of the film is that Mulan takes the shopping center of her father in the war as she is concerned about her health. Mulan tackles the idea of how gender roles are worthless and that anybody can do anything as long as you have the right attitude however some may argue against this. After her male disguise fails and she is banished, Mulan doesnt give up and instead saves the whole of mainland China and winning the heart of her once captain, Shang.One of the problems that have arisen already is the use of gender identity and what makes you a man or a woman. Mulan plays with the idea that to be a man you must be swift as a coursing river, with all the force of a great typhoon which are lyrics from the song, Ill make a man out of you. This is a problem as it reinforces the idea that you should be a man but what does it mean to be a man? This is giving young children, young boys in particular, a very obscured impression of what men are that they should be powerful and forceful. This also links to the idea that men are praised for taking charge and women are brandished as bossy6 (see figure 1) and commanding. In addition, the opening song, honour to us all includes the lyrics, men want girls with good taste, (who are) calm (and) obedient and who work fast-paced, with good breeding and a tiny waist. This is obviously sexist and demonstrates that in the past women were seen as nothing more than objects for men to admire.A further problem with gender identity in the film Mulan is tha t it could be regarded as transphobic as its ideas of what it means to be a man or woman only reference the physical aspects, for example the way we look or the way we talk which can be seen when Mulan cuts off her hair and uses a deep tone when pretending to be Ping who is her male alter self. The film does not reference the mental aspects of gender and could possibly offend a minority of people.However, some argue that Mulan isnt transphobic in the slightest, its just all about gender act, much like drag in real life. In the Feminist and bodge Analysis of Disneys Mulan by Juliane Fung they suggest that using the queer theorys idea of gender performativity, it can instead be argued that Mulan is a film about gender performance and not gender itself. The film is supported by Butlers idea that gender is not an inherent set of traits, but rather it is performed (Ott and Mack 2009).7Furthermore, the film explores the cart that is put on young women and how the anxieties can affect the. In the song, Reflection Mulan considers about her roles she has. She claims that she will never pass for a perfect bride, or a perfect daughter which shows the unrealistic demands that she was asked of. Mulan also hopes that she can free (herself) from their expectations which also demonstrates that women areIn conclusion, many would argue that Mulan executes feminism ideals very well and that the theme of women empowerment is the most prominent in the whole film while others would disagree and claim that the film portrays the belief that men are in fact superior to women and that feminine traits will always be subordinate to those of the superior male class, as explained in Juliane Fungs analysis.8 Throughout the whole movie, the emphasis is on gender roles, not Mulans aim to save China or her fathers life. Moreover, I believe that no gender here is represented in a more positive way than negative. Its very obvious that Mulan reinforces gender stereotypes with males being str ong leaders and females serving no other purpose than looking after their husbands and being beautiful. Something I felt was completely unnecessary was giving Mulan the love interest too, this film was supposed to show Mulan being strong and independent and break free of the stereotype that women should be wives and dedicate their life to domestic life so I felt having Mulan and Shang share a romantic relationship completely went against the films intended message.The Princess and the salientianThe second film we have from Disney is The Princess and The Frog which is the modernised version of the Brothers Grimms The frog king. This film excited many people as it was the first Disney film to have an African American lead role who was female. It also strays away from the typical damsel in distress trope that Disney have frequently used in the past. Tiana is a hardworking woman from New Orleans from 1930s America. She works two jobs to try and fund her dreams of owning a restaurant bu t due to contrariety she is left without the chance to buy an empty property. Her friend Charlotte is the daughter of the mayor, shes rich and beautiful yet her and Tiana have a very honest and open relationship. This is really refreshing to see as you would expect Charlotte and Tiana to have a very unfortunate relationship however they work really well together. One problem however is that there are the stereotypes of the smart brunette and the dumb/helpless blonde. (Gtz, 2006).Tiana is a headstrong character while Charlotte is constantly obsessed with marrying princess and being a princess herself, many would argue that she is a very one-dimensional character as she has no other tropes other than the one previously mentioned.As I previously mentioned, Tiana was the first female African American lead of a Disney movie so a lot of people would be excited to see what role she would take on and how she would be represented. A positive of Tianas character is that she shows that its i mportant to work hard for what you want and that you should always follow your head. Her happily ever after isnt that she is married to a prince, although that does happen, it is more about the fact she finally has her restaurant after working hard for so many years. Its very inspiring to see that Tiana finally reaches her goal after all of the hardships she faced but there are many problems attached to this as well.One problem that I have found is the fact that Disney likes to include love interests when theyre clearly not needed. By showcasing male-female romantic love as something out of the ordinary, special and magical childrens films further the mental picture of heterosexuality normative. (Kazyak and Martin, 2009) Furthermore, it seems at the end of the film that Tiana was only able to purchase the restaurant she wanted because of Naveens money and his status as a prince. Its understandable that this is more realistic as his privilege would have helped Tiana in the 30s but w hat sort of message does it promote to young women? That you have to rely on a man to reach your goals? In my opinion this is bad representation as it is showing that women cannot be independent in the long run.Another problem that could be argued is that even though Disney made a huge breakthrough with their first African American lead, Tiana spends the absolute majority of the film as an amphibian. Obviously, she has to be so the film can be progressed but what does it say if we hardly have any moments with a humanised Tiana? It could be claimed that because of the way Disney gave human Tiana hardly any screen time they didnt want a woman of colour to be the main lead and that is understandable. However, on many pieces of merchandise Tiana is very much always presented as a human and not as the frog character we know so this could dispute that claim.On the other hand, Prince Naveen also has troubles with representation in the film. Disney have come under fire from many fans and b lack man who accuse Disney of erasing their identities. Stroman (1984) states that black characters on television shows are more likely to be unemployed and impoverished9 so by making Naveen racially ambiguous, Disney have offended many people. From a blog online people have argued that this was a slap in the face of black men who are only portrayed as criminals and sidekicks and not heroes and romantic love interests.10In conclusion, I feel like Disney did try to represent both genders and minorities in this case well yet it didnt work. There are many problems such as the fact that the two main people of colour spend the majority of the film as amphibians and not portrayed as humans, that the female character has to rely on the male character for her dreams to come true and the forced hetero-romance between the main characters. On the other hand, there are many positives too. Tiana is overall a very inspiring character for young girls and especially little black girls. Its importan t for children to not only be encouraged by a character but that they can relate with them also. Tiana teaches them not to give up on your dreams even if the world is against you and thats an important life lesson for anyone. Prince Naveen is also a good role model for young boys, but mostly towards the end of the film when he has come to the end of his character arc. He goes from a penniless prince to a man who is loving and caring of his friends and family. He is concerned about his own ego at the start but changes to become more compassionate. Whats more is that Naveen loves his music and encourages others to play, something which is considered quite feminine.Bibliography Figure 1http//articles.bplans.com/gender-equality-white-paper/?_ga=1.15604406.1436524096.1490723092 (Accessed Feb, 17)(Ott and Mack 2009) Ott, Brian, and Robert Mack. Critical Media Studies. Oxford Wiley-Blackwell, 2010. (Accessed Jan, 17)(Gtz, 2006).Gtz, M. (2006). Die Hauptfiguren im deutschen Kinderfernsehen (The main characters of German childrens TV). In TelevIZIon, vol. 19, no. 1, pp. 4-7. (Accessed October, 16)(Kazyak and Martin, 2009) Martin, K. A., Kazyak, E. (2009). Hetero-romantic love and heterosexiness in childrens g-rated films. Gender and Society, 23(3), 315-336.(Accessed October, 16)(Stroman, 1984)Stroman, C.A. (1984). The socialization influence of television on black children Electronic Version. Journal of Black Studies, 15(1), 79-100.(Accessed January, 17)1 https//en.wikipedia.org/wiki/Johnny_Bravocite_note-8, 20172 https//en.wikipedia.org/wiki/Steven_Universe, 20173 https//www.reddit.com/r/stevenuniverse/comments/3j7r23/does_garnet_count_as_black/cun2a4f/, 20164 http//prixjeunesse.de/images/PDF/GenderInChildrensTVWorldwide_2008.pdf5 http//www.prixjeunesse.de/childrens_tv_worldwide/studies/CTV_WW_23_UK_IZI_PJ_2008.pdf6 http//articles.bplans.com/gender-equality-white-paper/?_ga=1.15604406.1436524096.14907230927 http//mulananalysis.weebly.com/8 http//mulananalysis.weebly. com/9 The Portrayals of nonage Characters in Entertaining Animated Childrens Programs, http//etd.lsu.edu/docs/available/etd-05282004-130909/unrestricted/Smith_thesis.pdf10 https//tcdh.wordpress.com/2009/12/14/the-princess-the-frog-controversies-and-criticism/

Basel II Accord Effects on Qatar Banking

Basel II Accord Effects on Qatar bevelingInter peopleal affirming is increasingly vital for e truly country in dictate to create an image for itself in the inter provincealistic finance marketChapter 1 Introduction world(prenominal) coin lingoing is increasingly vital for e real country in redact to create an image for itself in the transnational finance market. Alongside, the increase in globalisation and the upsurge in outsourcing by multinational companies in the wolfram create created a lot of opportunities for growth in the Middle East and Far Eastern countries. This app atomic number 18ntly requires a strong internation al angiotensin-converting enzymey electrostatic fiscal government to conduct transactions across the globe without any errors (i.e.) 100% accuracy. This includes reliability and stability of the marge under extreme situations (like emergency for example), which is highly measurable to conduct transnationalistic transactions. Also the potential to meet fiscal demands during crisis situations is a vital criterion that is considered while presenting themselves in the international market.In addition to the globalisation, outsourcing and trade/import growth, there is also a tremendous growth in cross- elude finance among the countries in the Middle East and Far East. Along with wholly these factors the develop nations in the Middle East face a mandatory requirement of a sable international argoting system in align to attract immaterial enthronization.The increase in cross bounce finance activity among the middle eastern countries is also a critical portion to be considered for readying a immutable international trust within the nation in severalise to jibe the country in the international finance market. The countries in the Middle East argon actively take part in cross- resound finance since the dawn of the 21st century. Being a producer of Oil which is a vital ingredient at all levels of life right from day- to-day driving up to power generation for the nation in order to run industries and serve domestic purposes, makes it critical for the nations in the Middle East to founder a strong international avowing system to conduct transactions across the globe accurately and effectively. Qatar is a growing nation in the Middle East with primary(a) coil operations in oil and gas export as well increasing its potential in areas of culture in technology counsel on IT and communication. The nation has efficient international operations and conducts pecuniary transactions between air jacketern nations as well as with eastern nations. Since the take over of the government by H.H. Sheikh Hamad Bin Khalifa in 1995, the country is make tremendous progress in deploying its hydrocarbon resources in order to penetrate in the international market and present itself as a pecuniaryly stable nation in the international market.Further to the increase in the international operations by the countries in the Middle East and the Far East, the jargon for international Settlements developed a framework to co-ordinate the international fiscal operations as well as create a portfolio for the dandy footmarkment and non bad(p) standards which every nation involving in international swearing operations is evaluate to acquire in order to stabilise and hurl in order the international transactions between countries. The Basel II distribute produced by Basel committal on banking Supervision aims at achieving worldwide Convergence of Capital cadence and Capital Standards. The arrangement aims to set a sidestepline standard to be met by its combat-ready nations in order to achieve enceinte adequateness by the active nations in the international market.This report aims at analysing the effects of Basel II assent on Qatars banking sector. The objectives of this report are stated belowTo analyse the Basel II accept and its framework for measuring pileus enough in the nat ions participating in the international banking transaction.To investigate the banking sector of Qatar and the effect of Basel II comply on its international operations and large(p) adequacy.To analyse the effect of Basel II accord on the nations dickens major banks having international operations in Qatar namely, Qatar Industrial Development trust (QIDB) and Commercial Bank of Qatar (CBQ) and to analyse the bushel of Basel II Accord on the Banking Sector of Qatar.Report OutlineThe report comprises of the following chapters.Chapter 1 IntroductionThis chapter introduces the referee to the objectives of the report and presents a broad envisage of the report to the commentator.Chapter 2 Overview of Basel II AccordThis chapter presents with an overview of the Basel II accord. The terce pillars of Basel II accord namely Minimum Capital Requirements, Supervisory Review growth and market Discipline are analysed in detail to provide the subscriber with a detailed understanding of the consent of Basel commissioning on Banking Supervision.Chapter 3 Implications and Critical outline of Basel II AccordThe literature analyze on the Basel II Accord in chapter 2 is followed by the critical analysis and its implications on nations (business and political) are presented to the reader before proceeding to present the overview of the Qatar Banking sector. Chapter 4 Overview of Qatar and its Banking SectorThis chapter presents the reader with an overview of Qatar as a nation and its business operations in the global market. Alongside, the chapter analyses the countrys growth in the banking sector and its internationally active banks.Chapter 5 Case StudyThis chapter conducts a causal agent study analysis on Qatars cardinal internationally active banks namely Qatar Industrial Development Bank (QIDB) and Commercial Bank of Qatar (CBQ). The effect of Basel II accord on the banks along with an overview of the bank is presented to the reader. The entropy used to pre sent the instance study is primarily obtained from secondary sources like journals, reports and white papers. This is apparently due the fact that the analysis is conducted on a external nation as well as the data available from the secondary sources are also reliable as they are published by authoritative presidencys and popular journals.Chapter 6 Results and DiscussionsThe results of the case study analysis and discussions are carried out in this chapter. This chapter aims to present a clearer furnish to the reader on the effects of the Basel II accord on the banks analysed.Chapter 7 Conclusion and RecommendationsThe conclusions derived from the case results and discussions on the case study and the general conclusion on the effect of Basel I accord on the Qatar Banking Sector is presented in this chapter. Alongside, this chapter presents a few constructive recommendations based on the results and discussion on the case study.Chapter 2 Overview of Basel II AccordThis chapte r begins with an overview of the Bank for International Settlements followed by a detailed analysis of the Basel II accord. The Basel II delegation is also analysed alongside in order to provide a deeper insight to the readers.2.1 Bank for International Settlements Overview and its OperationsThe Bank for International Settlements (Bank for International Settlements) is an international organization looking after international m wholenesstary and fiscal co-operation across the globe. This organization acts as the bank for all the of import banks of countries participating in the international finance and banking.The Bank for International Settlements profile states that the bank achieves the aforementioned statement with and through acting asA forum to promote discussion and facilitate laste- fashioning borderes among substitution banks and within the international fiscal and executive programy community.A centre for sparing and monetary researchA prime counter party for cen tral banks in their monetary transactions andAgent or trustee in confederacy with international financial operations.Established in 17th Many 1930, it is the oldest financial organization at the international level.The Bank for International Settlements has deuce-ace major conclusiveness making bodies within the bank to achieve its mission. They areThe general meeting of member central banksThis meeting is held before the end of four months of the end of the banks one-year financial year. The meeting overcompensatees all the issues related to business and the member central banks gather to approve the annual financial statement released by the bank.The Board of DirectorsThe senesce of directors comprise the central bank governors elected from various participating countries. They monitor the boilersuit operation of the bank and take responsibility for actions to be taken and channelize issues related to dis graveles and other major international financial cross border probl ems.The Management commissionThe management charge is the first line typifyative of the Bank for International Settlements and addresses the day-to-day activities of the bank. This citizens delegacy primarily manages the monetary and financial co-operation services. The services includeMeetingsApart from the Annual general meeting the Bank for International Settlements organizes meetings on a bimonthly basis. This meeting brings the member central banks together with the aim of monitoring the global economic and financial ontogenesis and discusses issues on its policies in recounting to the monetary and financial stability. citizens committees and SecretariatsBank for International Settlements has several committees to monitor specific problems and issues in the international finance and cross border loans. Alongside, several other committees and organizations nidus on international financial systems have their secretariats in the Bank for International Settlements and work c losely with the bank in order to enhance the overall international banking and cross border finance.Basel committee of the Bank for International Settlements is the committee that laid the specifications for roof bank notement and metropolis standard of the central banks participating in the international banking. seek and StatisticsIn order to support its meetings and the activities of the organizations Basel based committees the Bank for International Settlements carries out regular research on economic, monetary, financial and heavy areas of the international banking and cross border finance.Investment services for central banksBank for International Settlements also provides security, liquidity and return for its central bank members. The three primary points with respect to this identified by the organization areTo provide security, the Bank has built up a sizeable equity swell and ample reserves. It pursues an enthronisation strategy focused on combining diversification benefits with intensive credit and market put on the line analysis.To ensure liquidity, the Bank stands ready to repurchase its tradable instruments at teeny-weeny(a) cost to its customers and thus respond quickly and flexibly to their needs.The BIS offers an attractive and competitive return on the funds deposited by central banks and international organisationsThe Bank for International Settlements focuses on serving the financial needs of central banks of the member countries. Alongside, it also acts as a banker managing the funds for legion(predicate) international financial institutions.2.2 Basel committee OverviewThe Basel committee was readyed the member central banks of the Bank for International Settlements in order to create a standard for the international banking and peachy framework for crass border finance and lending. The committee was initially set up in 1970 and meets regularly four times a year to discuss the progress in international banking and address issu es related to business in this context.The member nations of the committee include Belgium, Canada, France, Germany, Italy, Japan, Luxembourg, the Netherlands, Spain, Sweden, Switzerland, United Kingdom and United States. The countrys central bank and financial institutions that are not active in banking commercially but monitor the financial operations of the nation both at national and international levels represent the nations. The committee does no possess any authority over its member nations banking systems and the decisions of the committee are never intended to have a effectual overstretch on its member nations.The Central bank governors of the Group ten countries endorse the committees major initiatives. Also the committee reports to the group ten countries central bank governors. The committee first proposed he chapiter measurement system in 1988 commonly referred to as Basel Capital Accord. The committee aims in superintendence the international banking operations of the nations across the globe. The decisions of the committee endorsed by the group ten countries address various financial issues in the international market outside the groups as well.The major aim of the committee is the close the gaps in international executive programy coverage and to ensure that no irrelevant banking systems escapes the supervision in order to frame a harmony among the member nations of the Bank for International Settlements as well as in the international market.The committee has promoted supervisory standards in the past few historic period. Some of its major milestones include the following1997 Cover Principles for effective banking supervision 1999 sum total Principles methodologyThe committee also presented the Basel II accord with revision on international capital framework. This aims to standardise the capital framework of every bank participating in the international banking as well as sets slabs for negligible capital holdings to be met by the banks in order to qualify for international operations.The committee has numerous subgroups to perform specific tasks of the committee in order to achieve the overall motto of the committee. They are listed belowAccord Implementation GroupAccounting Task ForceCapital GroupCapital Task Force spunk Principles Liaison Group (with 16 non-G10 countries)Cross-Border Banking GroupElectronic Banking GroupJoint Forum (with IAIS and IOSCO)Joint IOSCO BCBS Working Group on Trading Book query Task ForceRisk Management GroupSecuritisation GroupTransparency GroupThe next section provides a detailed analysis of the Basel II accord and its various implications on international banking is discussed in chapter 3.2.3 The Basel II AccordThe Basel II accord was released in June 2004 further to the release of the Basel Accord in 2003. The Basel II is a revised edition of the initial Basel capital accord. It is a framework designed to derive the capital holdings of internationally active banks to meet th e international standards and sets a marginal level of capital holding which is a primary criteria for the banks. The Basel II framework is aimed to be applied on a consolidated basis over internationally active banks in order to preserve the integrity of capital in the banks with subsidiaries. Also the framework eliminates the double gearing through this plan of attack.The Basel II accords framework is also applied on a fully consolidated basis on any parent holding company which acts as a parent entity within a banking group in order to capture the essay on a consolidated basis without missing any cistron that contributes considerably to the risk of the overall banking system.Alongside, the framework is also applicable to all internationally active banks at every tier of the banking group.Apart from the aforementioned statements one of the principal objectives of the Basel II Accord is to protect the interest of the depositors essentially to ensure that capital recognised capi tal adequacy measures is readily available for the depositors. Apparently, these measures are aimed to certify a common platform for international banking and cross border finance across the globe.The scope of application extends to the following segments of the international banking and finance entities.Banking, securities and other financial subsidiariesSignificant minority investments in banking securitiesInsurance entitiesSignificant investment in commercial entities.Deduction of investment pursuant to this partThe aforementioned entities are obtained from the Basel Committee report on International Convergence of Capital cadence and Capital Standards, published in June 2004. The Basel II accord overview is based on this report. The illustration in the fig 1 gives a clear picture of the overall scope of application of the Basel II accord.The Basel II accord is split into three pillars.The first mainstay Minimum Capital RequirementsThe following subsections provide a detailed analysis on the elements shown in fig 2.2.4 The First pillarThe First pillar lays toss off feather the minimal capital requirements that every internationally active bank should incorporate. It is split into the following subsection.2.4.1 Calculation of Minimum capital requirementsThe minimum capital requirement is metric as a measure of the capital ration. The capital ratio in turn is metrical using the regulatory capital and risk-weighted assets. The requirement of this criterion is that the capital ration mustinessiness be a minimum of 8% or more in order to be eligible for the international activities. Also, in case of a two tier system the capital in tier 2 must not be greater than the tier 1 capital (i.e.) the tier 2 capital can be a maximum of 100% of the tier 1 capital. The capital is accounted from the following sources Regulatory capital The minimum accounting capital requirements for the financial institution encompasses the regulatory capital. The Basel II accord has withdrawn the provision to include general provisions in tire 2 capital, which was in effect in the 1988 Accord under the Internal Ratings-Based (IRB) cost. Furthermore the accord has lain down that the banks using the Internal Ratings Based set about to their other assets must compare the amount of total eligible provision with the total judge losses amount to the bank. This eventually increases the capital holding of the bank in order to meet the criteria.Risk Weighted Assets The Basel II Accord calculates the total risk-weighted assets by multiplying the capital requirement for market risk and operational risk by the common of the minimum capital ratio of 8% and adding the resulting value to the sum of risk weighted assets for credit risk. Even though this is subject to reexamination the overture lays huge burden on the bank to increase its minimum capital holdings. Apparently the Basel II Accord is aiming to establish that the internationally active banks must have passable capital to meet its short comings without depending on loans and cross border finance to address its immediate requirements and short comings. The idea though being novel is very intense for the banks to maintain the requisite minimum capital.2.4.2 Credit Risk-The Standardised tone-beginningUnder this method the Basel committee provides the internationally active banks a choice for work out their capital requirements for credit risk. The first approach is the standardised method of measuring the credit risk through support from external credit assessments. This method is ratified by the Basel committee while the other method is yet to explicitly O.K. by the committee. Under the alternate method of cypher the credit risk, the bank supervisor can allow banks to use their internal rating systems for calculating the credit risk.Under both the methodologies one should not oversee the fact that the Basel committee is very keen in assessing the credit risk on the capital hol dings of the internationally active banks. Even though this is appreciated, the rules are very stringent making it very difficult for the banks for contract easily.2.4.3 Credit Risk- Internal Ratings Based accessionThe Basel II committee has given supervisory citation for banks to use the Internal Ratings-Based approach to determine their capital requirement for a given exposure subject to certain minimum conditions and disclosure requirements. The risk components considered includeMeasures of the probability of default (PD), exhalation given default (LGD),The exposure at default (EAD),Effective maturity (M)The Basel II accord states that The Internal Ratings Based Approach is based on the measure of unexpected loses (UL) and Expected Loses (EL).Under the Internal Ratings Based Approach, the committee expects the bank to categories their exposures in order to identify the different underlying risk characteristics. The categories include corporate, sovereign, bank, sell and equit y. These are identified as the corporate asset classes and the approach further expects the bank to identify the subclasses associated with the asset classes in order to measure the credit risk associated with the exposure. The detailed analysis of every corporate class and its associated subclasses is beyond the scope of this report.In essence the Internal Ratings Based Approach gives the bank more shore leave to calculate its credit-risk on the minimum capital requirement for a given exposure. But the producers laid by the Basel II Accord is very tedious to adopt and implement for every corporate class exposure and identifying the subclasses associated.2.4.4 Credit Risk- Securitisation FrameworkThe Basel Committee in its revised accord, has made it mandatory for the banks to apply the Securitisation Framework for determine regulatory capital requirements on exposure arising from conventional and synthetic Securitisation or similar structures that contain features common to both. The Basel II accord also states that the capital intervention of the Securitisation exposure must be determined on the basis of the economic substance rather than the legal form of the structure. It is apparent that the securities can be structured in many different ways and the committee has approved the use of either the traditional Securitisation or the synthetic Securitisation framework. Also the Basel II accord expects the supervisor to look at the economic substance of transaction in order to determine whether it should be subject to Securitisation framework or not. This gives the discretionary power to the supervisor to decide on a specific transaction whether to include it in the framework or to eliminate it from the framework towards ascertain the regulatory capital framework. The traditional Securitisation and the synthetic Securitisation framework are discussed below.Traditional SecuritisationThe Basel II Accord defines the traditional framework as a structure where the cash flow from an underlying pocket billiards of exposures is used to service at least two different stratified risk positions or tranches reflecting different degrees of credit risk. The advantage with this approach is that the fee to the investors is based on the performance of the specified underlying exposures rather than a derivation from an obligation of the entity originating those exposures.Synthetic SecuritisationA synthetic Securitisation is a structure with at least two different stratified risk positions or tranches that reflect different degrees of credit risk where credit risk of an underlying pocket billiards of exposures is transferred, in whole or in part, through the use of funded (e.g. credit-linked notes) or un-funded (e.g. credit default swaps) credit derivatives or guarantees that serve to hedge the credit risk of the portfolio. This approach leaves the return to the investors in the hands of the performance of the underlying pool. Apparently, the risk associated is higher since the performance can be affected by numerous causes.From the above-mentioned approaches the Basel II accords stand for evaluating the capital and minimum capital requirements are evident.2.4.5 Operational RiskThe operational risk is defined by the Basel Committee as the risk associated with the loss resulting from inadequate or failed internal marches, people, systems or external events. This includes the legal risk with the exclusion of strategic and reputational risk.The Basel II Accord has approved three methods for calculating the operational risk and risk sensitivity with the implications on minimum capital requirements. They are (i) The Basic indicator approach, (ii) the Standardised Approach and (iii) Advanced Measurement Approach.Basic Indicator ApproachIn this case the banks should hold capital for the operational risk equal to the average over the past three historic period of a fixed percentage. This is expressed as a formula below KBIA = (GI1 n x ) Where KBIA = the capital charge under the Basic Indicator Approach GI = annual gross income, where positive, over the previous three years n = number of the previous three years for which gross income is positive = 15%, which is set by the Committee, relating the industry wide level of needful capital to the industry wide level of the indicator. This formula is obtained from the Basel II accord for the purpose of reader understanding.Standardised ApproachThe standardised approach divides the banks activities into eight-business lines namely corporate finance, trading sales, sell banking, commercial banking, earnings settlement, agency services, asset management, and sell brokerage. The likelihood of operational risk exposure is calculated from the gross income associated with each business line that serves as an indicator for the scale of business operations by the bank in that specific area of business or business line. This approach is very clumsy since the gross inco me associated with the business line varies due to numerous reasons both internal and external.Advanced Measurement ApproachThe Advanced Measurement Approach equates the regulatory capital requirement with the risk measure generated by the banks internal operational risk measurement system using quantitative and qualitative criteria. The banks can use this method only after the citation by the Committee.The Basel II Accord sets the approach for the banks based on their international activity and significant operational risk exposures. Also, when a bank agrees to use a more sophisticated method, it cannot revert back to the easier method without approval from the supervisor. This eventually increases the burden on the banks to choose a sophisticated method.2.4.6 Trading Book IssuesThe last(a) segment of the first pillar is the trading book. Basel Committee defines the trading book as a container of both the financial instruments and commodities held either with trading intent or in order to hedge other elements of the trading book. The trading book forms a vital element for the bank since it is the record of the banks financial instruments as well as commodities. The Basel II Accord identifies four key principles for the supervisory process. They are listed below.The basic requirements for the eligibility to trading book capital treatment put forth by the Basel II Accord are as followsClearly documented trading strategy for the position/instrument or portfolios, approved by senior management (which would include expected holding horizon).Clearly defined policies and procedures for the active management of the positionClearly defined policy and procedures to monitor the positions against the banks trading strategy including the monitoring of turnover and stale positions in the banks trading book2.3 The Second Pillar- Supervisory Review kneadBasel committee was initially set up for the supervising the internationally active banks and produce a common platform for the smooth transactions and cross border finance. The Basel II Accord has established Supervisory Process as one of the three pillars in order to emphasise its stand on supervisory process.The greatness of supervisory process is described below.2.3.1 Importance of Supervisory ProcessThe supervisory review process of the Basel II Accord aims not only to ensure that banks have adequate capital to support all the risks in their business but also intends to encourage the banks to develop and use better risk management techniques in monitoring and managing risks. Alongside, the supervisory process by exploitation internal capital assessment process and setting capital targets that are commensurate with the banks risk profile recognises the magnificence for bank management in order to improve the atmosphere in the international banking and cross border finance.The Supervisory process evaluates the semblanceship between the amount of capital held by the bank against the risk, stre ngth and effectiveness of the banks risk management eventually guiding the bank and supervising its activities in order to improve the performance of the banks in the international business market and cross border finance.2.3.2 Four Key Principles of the supervisory reviewThe four key principles identified by the Basel II Accord on the supervisory process is listed below. These principles emphasise on the committees focus on supervision and its aim to maintain harmony in the international banking and cross border finance.Principle 1 Banks should have a process for assessing their overall capital adequacy in relation to their risk profile and a strategy for maintaining their capital levels.Principle 2Supervisors should review and evaluate banks internal capital adequacy assessments and strategies, as well as their ability to monitor and ensure their compliance with regulatory capital ratios. Supervisors should take appropriate supervisory action if they are not satisfied with the res ult of this process.Principle 3 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.Principle 4 Supervisors should seek to intervene at an early stage to prevent capital from falling below the minimum levels required to support the risk characteristics of a particular bank and should require rapid remedial action if capital is not maintained or restored.2.3.3 Issues to be intercommunicateThere are two specific issues to be intercommunicate by the Supervisory-Review Process. They areInterest Rate Risk in the Banking bookSince it is clear that the Basel CommitteesBasel II Accord Effects on Qatar BankingBasel II Accord Effects on Qatar BankingInternational banking is increasingly vital for every country in order to create an image for itself in the international finance marketChapter 1 IntroductionInternational banking is increasingly vital for every country in ord er to create an image for itself in the international finance market. Alongside, the increase in globalisation and the upsurge in outsourcing by multinational companies in the west have created a lot of opportunities for growth in the Middle East and Far Eastern countries. This apparently requires a strong internationally stable financial organization to conduct transactions across the globe without any errors (i.e.) 100% accuracy. This includes reliability and stability of the bank under extreme situations (like emergency for example), which is highly all important(p) to conduct international transactions. Also the potential to meet financial demands during crisis situations is a vital criterion that is considered while presenting themselves in the international market.In addition to the globalisation, outsourcing and export/import growth, there is also a tremendous growth in cross-border finance among the countries in the Middle East and Far East. Along with all these factors the developing nations in the Middle East face a mandatory requirement of a sable international banking system in order to attract unlike investment.The increase in cross border finance activity among the middle eastern countries is also a critical element to be considered for establishing a stable international bank within the nation in order to represent the country in the international finance market. The countries in the Middle East are actively participating in cross-border finance since the dawn of the 21st century. Being a producer of Oil which is a vital ingredient at all levels of life right from day-to-day driving up to power generation for the nation in order to run industries and serve domestic purposes, makes it critical for the nations in the Middle East to have a strong international banking system to conduct transactions across the globe accurately and effectively. Qatar is a growing nation in the Middle East with primary operations in oil and gas export as well increa sing its potential in areas of development in technology focusing on IT and communication. The nation has efficient international operations and conducts financial transactions between western nations as well as with eastern nations. Since the take over of the government by H.H. Sheikh Hamad Bin Khalifa in 1995, the country is making tremendous progress in deploying its hydrocarbon resources in order to penetrate in the international market and present itself as a financially stable nation in the international market.Further to the increase in the international operations by the countries in the Middle East and the Far East, the Bank for International Settlements developed a framework to co-ordinate the international financial operations as well as create a portfolio for the capital measurement and capital standards which every nation involving in international banking operations is expected to adopt in order to stabilise and put in order the international transactions between count ries. The Basel II accord produced by Basel Committee on Banking Supervision aims at achieving International Convergence of Capital Measurement and Capital Standards. The arrangement aims to set a minimum standard to be met by its participating nations in order to achieve capital adequacy by the participating nations in the international market.This report aims at analysing the effects of Basel II accord on Qatars banking sector. The objectives of this report are stated belowTo analyse the Basel II accord and its framework for measuring capital adequacy in the nations participating in the international banking transaction.To investigate the banking sector of Qatar and the effect of Basel II accord on its international operations and capital adequacy.To analyse the effect of Basel II accord on the nations two major banks having international operations in Qatar namely, Qatar Industrial Development Bank (QIDB) and Commercial Bank of Qatar (CBQ) and to analyse the shock absorber of Ba sel II Accord on the Banking Sector of Qatar.Report OutlineThe report comprises of the following chapters.Chapter 1 IntroductionThis chapter introduces the reader to the objectives of the report and presents a broad picture of the report to the reader.Chapter 2 Overview of Basel II AccordThis chapter presents with an overview of the Basel II accord. The three pillars of Basel II accord namely Minimum Capital Requirements, Supervisory Review Process and mart Discipline are analysed in detail to provide the reader with a detailed understanding of the consent of Basel Committee on Banking Supervision.Chapter 3 Implications and Critical analytic thinking of Basel II AccordThe literature review on the Basel II Accord in chapter 2 is followed by the critical analysis and its implications on nations (business and political) are presented to the reader before proceeding to present the overview of the Qatar Banking sector. Chapter 4 Overview of Qatar and its Banking SectorThis chapter prese nts the reader with an overview of Qatar as a nation and its business operations in the International market. Alongside, the chapter analyses the countrys growth in the banking sector and its internationally active banks.Chapter 5 Case StudyThis chapter conducts a case study analysis on Qatars two internationally active banks namely Qatar Industrial Development Bank (QIDB) and Commercial Bank of Qatar (CBQ). The effect of Basel II accord on the banks along with an overview of the bank is presented to the reader. The data used to present the case study is primarily obtained from secondary sources like journals, reports and white papers. This is apparently due the fact that the analysis is conducted on a foreign nation as well as the data available from the secondary sources are also reliable as they are published by lucid organizations and popular journals.Chapter 6 Results and DiscussionsThe results of the case study analysis and discussions are carried out in this chapter. This ch apter aims to present a clearer picture to the reader on the effects of the Basel II accord on the banks analysed.Chapter 7 Conclusion and RecommendationsThe conclusions derived from the case results and discussions on the case study and the overall conclusion on the effect of Basel I accord on the Qatar Banking Sector is presented in this chapter. Alongside, this chapter presents a few constructive recommendations based on the results and discussion on the case study.Chapter 2 Overview of Basel II AccordThis chapter begins with an overview of the Bank for International Settlements followed by a detailed analysis of the Basel II accord. The Basel II committee is also analysed alongside in order to provide a deeper insight to the readers.2.1 Bank for International Settlements Overview and its OperationsThe Bank for International Settlements (Bank for International Settlements) is an international organization looking after international monetary and financial co-operation across the globe. This organization acts as the bank for all the central banks of countries participating in the international finance and banking.The Bank for International Settlements profile states that the bank achieves the aforementioned statement through acting asA forum to promote discussion and facilitate decision-making processes among central banks and within the international financial and supervisory community.A centre for economic and monetary researchA prime counter party for central banks in their financial transactions andAgent or trustee in federation with international financial operations.Established in 17th Many 1930, it is the oldest financial organization at the international level.The Bank for International Settlements has three major decision making bodies within the bank to achieve its mission. They areThe general meeting of member central banksThis meeting is held before the end of four months of the end of the banks annual financial year. The meeting addresses all t he issues related to business and the member central banks gather to approve the annual financial statement released by the bank.The Board of DirectorsThe add-in of directors comprise the central bank governors elected from various participating countries. They monitor the overall operation of the bank and take responsibility for actions to be taken and address issues related to disputes and other major international financial cross border problems.The Management CommitteeThe management committee is the first line representative of the Bank for International Settlements and addresses the day-to-day activities of the bank. This committee primarily manages the monetary and financial co-operation services. The services includeMeetingsApart from the Annual general meeting the Bank for International Settlements organizes meetings on a bimonthly basis. This meeting brings the member central banks together with the aim of monitoring the global economic and financial development and discus ses issues on its policies in relation to the monetary and financial stability.Committees and SecretariatsBank for International Settlements has several committees to monitor specific problems and issues in the international finance and cross border loans. Alongside, several other committees and organizations focusing on international financial systems have their secretariats in the Bank for International Settlements and work closely with the bank in order to enhance the overall international banking and cross border finance.Basel committee of the Bank for International Settlements is the committee that laid the specifications for capital measurement and capital standard of the central banks participating in the international banking.Research and StatisticsIn order to support its meetings and the activities of the organizations Basel based committees the Bank for International Settlements carries out regular research on economic, monetary, financial and legal areas of the internatio nal banking and cross border finance.Investment services for central banksBank for International Settlements also provides security, liquidity and return for its central bank members. The three primary points with respect to this identified by the organization areTo provide security, the Bank has built up a sizeable equity capital and ample reserves. It pursues an investment strategy focused on combining diversification benefits with intensive credit and market risk analysis.To ensure liquidity, the Bank stands ready to repurchase its tradable instruments at little cost to its customers and thus respond quickly and flexibly to their needs.The BIS offers an attractive and competitive return on the funds deposited by central banks and international organisationsThe Bank for International Settlements focuses on serving the financial needs of central banks of the member countries. Alongside, it also acts as a banker managing the funds for numerous international financial institutions.2. 2 Basel committee OverviewThe Basel committee was established the member central banks of the Bank for International Settlements in order to create a standard for the international banking and capital framework for crass border finance and lending. The committee was initially set up in 1970 and meets regularly four times a year to discuss the progress in international banking and address issues related to business in this context.The member nations of the committee include Belgium, Canada, France, Germany, Italy, Japan, Luxembourg, the Netherlands, Spain, Sweden, Switzerland, United Kingdom and United States. The countrys central bank and financial institutions that are not active in banking commercially but monitor the financial operations of the nation both at national and international levels represent the nations. The committee does no possess any authority over its member nations banking systems and the decisions of the committee are never intended to have a legal oblige on it s member nations.The Central bank governors of the Group ten countries endorse the committees major initiatives. Also the committee reports to the group ten countries central bank governors. The committee first proposed he capital measurement system in 1988 commonly referred to as Basel Capital Accord. The committee aims in supervising the international banking operations of the nations across the globe. The decisions of the committee endorsed by the group ten countries address various financial issues in the international market outside the groups as well.The major aim of the committee is the close the gaps in international supervisory coverage and to ensure that no foreign banking systems escapes the supervision in order to establish a harmony among the member nations of the Bank for International Settlements as well as in the international market.The committee has promoted supervisory standards in the past few years. Some of its major milestones include the following1997 Cover Pr inciples for effective banking supervision 1999 Core Principles methodologyThe committee also presented the Basel II accord with revision on international capital framework. This aims to standardise the capital framework of every bank participating in the international banking as well as sets slabs for minimum capital holdings to be met by the banks in order to qualify for international operations.The committee has numerous subgroups to perform specific tasks of the committee in order to achieve the overall motto of the committee. They are listed belowAccord Implementation GroupAccounting Task ForceCapital GroupCapital Task ForceCore Principles Liaison Group (with 16 non-G10 countries)Cross-Border Banking GroupElectronic Banking GroupJoint Forum (with IAIS and IOSCO)Joint IOSCO BCBS Working Group on Trading BookResearch Task ForceRisk Management GroupSecuritisation GroupTransparency GroupThe next section provides a detailed analysis of the Basel II accord and its various implicatio ns on international banking is discussed in chapter 3.2.3 The Basel II AccordThe Basel II accord was released in June 2004 further to the release of the Basel Accord in 2003. The Basel II is a revised edition of the initial Basel capital accord. It is a framework designed to derive the capital holdings of internationally active banks to meet the international standards and sets a minimum level of capital holding which is a primary criteria for the banks. The Basel II framework is aimed to be applied on a consolidated basis over internationally active banks in order to preserve the integrity of capital in the banks with subsidiaries. Also the framework eliminates the double gearing through this approach.The Basel II accords framework is also applied on a fully consolidated basis on any parent holding company which acts as a parent entity within a banking group in order to capture the risk on a consolidated basis without missing any element that contributes considerably to the risk of the overall banking system.Alongside, the framework is also applicable to all internationally active banks at every tier of the banking group.Apart from the aforementioned statements one of the principal objectives of the Basel II Accord is to protect the interest of the depositors essentially to ensure that capital recognised capital adequacy measures is readily available for the depositors. Apparently, these measures are aimed to establish a common platform for international banking and cross border finance across the globe.The scope of application extends to the following segments of the international banking and finance entities.Banking, securities and other financial subsidiariesSignificant minority investments in banking securitiesInsurance entitiesSignificant investment in commercial entities.Deduction of investment pursuant to this partThe aforementioned entities are obtained from the Basel Committee report on International Convergence of Capital Measurement and Capital Sta ndards, published in June 2004. The Basel II accord overview is based on this report. The illustration in the fig 1 gives a clear picture of the overall scope of application of the Basel II accord.The Basel II accord is split into three pillars.The first Pillar Minimum Capital RequirementsThe following subsections provide a detailed analysis on the elements shown in fig 2.2.4 The First PillarThe First pillar lays down the minimum capital requirements that every internationally active bank should incorporate. It is split into the following subsection.2.4.1 Calculation of Minimum capital requirementsThe minimum capital requirement is calculated as a measure of the capital ration. The capital ratio in turn is calculated using the regulatory capital and risk-weighted assets. The requirement of this criterion is that the capital ration must be a minimum of 8% or more in order to be eligible for the international activities. Also, in case of a two tier system the capital in tier 2 must no t be greater than the tier 1 capital (i.e.) the tier 2 capital can be a maximum of 100% of the tier 1 capital. The capital is accounted from the following sources Regulatory capital The minimum accounting capital requirements for the financial institution encompasses the regulatory capital. The Basel II accord has withdrawn the provision to include general provisions in tire 2 capital, which was in effect in the 1988 Accord under the Internal Ratings-Based (IRB) approach. Furthermore the accord has lain down that the banks using the Internal Ratings Based approach to their other assets must compare the amount of total eligible provision with the total expected losses amount to the bank. This eventually increases the capital holding of the bank in order to meet the criteria.Risk Weighted Assets The Basel II Accord calculates the total risk-weighted assets by multiplying the capital requirement for market risk and operational risk by the interactive of the minimum capital ratio of 8 % and adding the resulting value to the sum of risk weighted assets for credit risk. Even though this is subject to review the approach lays abundant burden on the bank to increase its minimum capital holdings. Apparently the Basel II Accord is aiming to establish that the internationally active banks must have copious capital to meet its short comings without depending on loans and cross border finance to address its immediate requirements and short comings. The idea though being novel is very intense for the banks to maintain the required minimum capital.2.4.2 Credit Risk-The Standardised ApproachUnder this method the Basel committee provides the internationally active banks a choice for calculating their capital requirements for credit risk. The first approach is the standardised method of measuring the credit risk through support from external credit assessments. This method is approved by the Basel committee while the other method is yet to explicitly approved by the committe e. Under the alternate method of calculating the credit risk, the bank supervisor can allow banks to use their internal rating systems for calculating the credit risk.Under both the methodologies one should not oversee the fact that the Basel committee is very keen in assessing the credit risk on the capital holdings of the internationally active banks. Even though this is appreciated, the rules are very stringent making it very difficult for the banks for adopt easily.2.4.3 Credit Risk- Internal Ratings Based ApproachThe Basel II committee has given supervisory approval for banks to use the Internal Ratings-Based approach to determine their capital requirement for a given exposure subject to certain minimum conditions and disclosure requirements. The risk components considered includeMeasures of the probability of default (PD), dismissal given default (LGD),The exposure at default (EAD),Effective maturity (M)The Basel II accord states that The Internal Ratings Based Approach is bas ed on the measure of unexpected loses (UL) and Expected Loses (EL).Under the Internal Ratings Based Approach, the committee expects the bank to categories their exposures in order to identify the different underlying risk characteristics. The categories include corporate, sovereign, bank, retail and equity. These are identified as the corporate asset classes and the approach further expects the bank to identify the subclasses associated with the asset classes in order to measure the credit risk associated with the exposure. The detailed analysis of every corporate class and its associated subclasses is beyond the scope of this report.In essence the Internal Ratings Based Approach gives the bank more casualness to calculate its credit-risk on the minimum capital requirement for a given exposure. But the producers laid by the Basel II Accord is very tedious to adopt and implement for every corporate class exposure and identifying the subclasses associated.2.4.4 Credit Risk- Securitis ation FrameworkThe Basel Committee in its revised accord, has made it mandatory for the banks to apply the Securitisation Framework for determining regulatory capital requirements on exposure arising from traditional and synthetic Securitisation or similar structures that contain features common to both. The Basel II accord also states that the capital treatment of the Securitisation exposure must be determined on the basis of the economic substance rather than the legal form of the structure. It is apparent that the securities can be structured in many different ways and the committee has approved the use of either the traditional Securitisation or the synthetic Securitisation framework. Also the Basel II accord expects the supervisor to look at the economic substance of transaction in order to determine whether it should be subject to Securitisation framework or not. This gives the discretionary power to the supervisor to decide on a specific transaction whether to include it in t he framework or to eliminate it from the framework towards determining the regulatory capital framework. The traditional Securitisation and the synthetic Securitisation framework are discussed below.Traditional SecuritisationThe Basel II Accord defines the traditional framework as a structure where the cash flow from an underlying pool of exposures is used to service at least two different stratified risk positions or tranches reflecting different degrees of credit risk. The advantage with this approach is that the payment to the investors is based on the performance of the specified underlying exposures rather than a derivation from an obligation of the entity originating those exposures.Synthetic SecuritisationA synthetic Securitisation is a structure with at least two different stratified risk positions or tranches that reflect different degrees of credit risk where credit risk of an underlying pool of exposures is transferred, in whole or in part, through the use of funded (e.g. credit-linked notes) or un-funded (e.g. credit default swaps) credit derivatives or guarantees that serve to hedge the credit risk of the portfolio. This approach leaves the return to the investors in the hands of the performance of the underlying pool. Apparently, the risk associated is higher since the performance can be affected by numerous causes.From the above-mentioned approaches the Basel II accords stand for evaluating the capital and minimum capital requirements are evident.2.4.5 Operational RiskThe operational risk is defined by the Basel Committee as the risk associated with the loss resulting from inadequate or failed internal processes, people, systems or external events. This includes the legal risk with the exclusion of strategic and reputational risk.The Basel II Accord has approved three methods for calculating the operational risk and risk sensitivity with the implications on minimum capital requirements. They are (i) The Basic indicator approach, (ii) the Standar dised Approach and (iii) Advanced Measurement Approach.Basic Indicator ApproachIn this case the banks should hold capital for the operational risk equal to the average over the past three years of a fixed percentage. This is expressed as a formula below KBIA = (GI1n x ) Where KBIA = the capital charge under the Basic Indicator Approach GI = annual gross income, where positive, over the previous three years n = number of the previous three years for which gross income is positive = 15%, which is set by the Committee, relating the industry wide level of required capital to the industry wide level of the indicator. This formula is obtained from the Basel II accord for the purpose of reader understanding.Standardised ApproachThe standardised approach divides the banks activities into eight-business lines namely corporate finance, trading sales, retail banking, commercial banking, payment settlement, agency services, asset management, and retail brokerage. The likelihood of operation al risk exposure is calculated from the gross income associated with each business line that serves as an indicator for the scale of business operations by the bank in that specific area of business or business line. This approach is very clumsy since the gross income associated with the business line varies due to numerous reasons both internal and external.Advanced Measurement ApproachThe Advanced Measurement Approach equates the regulatory capital requirement with the risk measure generated by the banks internal operational risk measurement system using quantitative and qualitative criteria. The banks can use this method only after the approval by the Committee.The Basel II Accord sets the approach for the banks based on their international activity and significant operational risk exposures. Also, when a bank agrees to use a more sophisticated method, it cannot revert back to the easier method without approval from the supervisor. This eventually increases the burden on the bank s to choose a sophisticated method.2.4.6 Trading Book IssuesThe final segment of the first pillar is the trading book. Basel Committee defines the trading book as a container of both the financial instruments and commodities held either with trading intent or in order to hedge other elements of the trading book. The trading book forms a vital element for the bank since it is the record of the banks financial instruments as well as commodities. The Basel II Accord identifies four key principles for the supervisory process. They are listed below.The basic requirements for the eligibility to trading book capital treatment put forth by the Basel II Accord are as followsClearly documented trading strategy for the position/instrument or portfolios, approved by senior management (which would include expected holding horizon).Clearly defined policies and procedures for the active management of the positionClearly defined policy and procedures to monitor the positions against the banks tradi ng strategy including the monitoring of turnover and stale positions in the banks trading book2.3 The Second Pillar- Supervisory Review ProcessBasel committee was initially set up for the supervising the internationally active banks and produce a common platform for the smooth transactions and cross border finance. The Basel II Accord has established Supervisory Process as one of the three pillars in order to emphasise its stand on supervisory process.The importance of supervisory process is described below.2.3.1 Importance of Supervisory ProcessThe supervisory review process of the Basel II Accord aims not only to ensure that banks have adequate capital to support all the risks in their business but also intends to encourage the banks to develop and use better risk management techniques in monitoring and managing risks. Alongside, the supervisory process by developing internal capital assessment process and setting capital targets that are commensurate with the banks risk profile r ecognises the importance for bank management in order to improve the atmosphere in the international banking and cross border finance.The Supervisory process evaluates the relationship between the amount of capital held by the bank against the risk, strength and effectiveness of the banks risk management eventually guiding the bank and supervising its activities in order to improve the performance of the banks in the international business market and cross border finance.2.3.2 Four Key Principles of the supervisory reviewThe four key principles identified by the Basel II Accord on the supervisory process is listed below. These principles emphasise on the committees focus on supervision and its aim to maintain harmony in the international banking and cross border finance.Principle 1 Banks should have a process for assessing their overall capital adequacy in relation to their risk profile and a strategy for maintaining their capital levels.Principle 2Supervisors should review and eval uate banks internal capital adequacy assessments and strategies, as well as their ability to monitor and ensure their compliance with regulatory capital ratios. Supervisors should take appropriate supervisory action if they are not satisfied with the result of this process.Principle 3 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.Principle 4 Supervisors should seek to intervene at an early stage to prevent capital from falling below the minimum levels required to support the risk characteristics of a particular bank and should require rapid remedial action if capital is not maintained or restored.2.3.3 Issues to be addressedThere are two specific issues to be addressed by the Supervisory-Review Process. They areInterest Rate Risk in the Banking bookSince it is clear that the Basel Committees

The Importance of the Tutor in The Flies :: Lord Flies Essays

The Importance of the Tutor in The Flies   In blue jean -Paul Sartes play, The Flies, the main character Orestes manages to lift a curse that has plagued the dwellers of Argos for decades. Both the current king of Argos and Zeus himself are perpetuating this curse for as long as possible for the curse keeps the people subservient and in a state of mourning and terror of their own actions two things that both the king and Zeus privilege in their rule over people. Orestes was actually a resident of Argos and is the first child of the Queen Mother and the dead king. He returns to Argos with a traveling companion, the Tutor, who employ to be the childs teacher in the ways of the world. Now the man is Orestes slave and close advisor. Orestes stance towards the Tutor and their past relationship essentially effects his readiness to break the curse in Argos.   In a completely literary sense he was both a counselor for Orestes and a sort of bank clerk to fill in holes in dialog ue and the story line. Orestes background was the foundation for his decision-making in this play and Sartre had to find a way to let the audience bed what this background was, not only for a linear and complete plot, but also as a testament to the thoughts themselves. The Tutor completed his role in both senses, tying the plot together at the beginning and the very end, and also moving the story along with gifts of advice and observations to Orestes. He almost in a sense doesnt belong in the play. He is a complete contrast to all of the other characters other than maybe Orestes himself. And yet he seems to be a part of Orestes, like his conscious, his voice of reason in this whole tribulation. As a character, the Tutor is much more complicated than one might bust upon first glance.   The Tutor as a person was fairly simple in his wisdom and ideas. He had no delusions, no emotional or apparitional ties, and no truth other than simple and deductive logic. As for personality tr aits, he was a deist, an atheist, and help a kind of detachment from the world and its people. He is an admitted skeptic of the world, telling Orestes that he had been trained in skeptic irony (61).

Oppresive Force Essay -- essays research papers

Oppressive ForcesAmy bronzes Mother Tongue and James Baldwins If B insufficiency incline Isnt a row, Then Tell Me, What Is? discusses the world power in language and how it is defined as a tool for communication but is used to phase peoples perception of others. Both Tan and Baldwin state that language is used as an oppressive force that doesnt properly acknowledge minorities and the lack of proficiency in standard English doesnt allow them to participate with society equally. Within Baldwins essay he makes it clear that the fatal lodge is not accepted because of the language in which they speak. It isnt the fault of the language but the role in which society refuses to acknowledge their history. He states, It is not the morose childs language that is despised. It is his experience. (pg 534) He is represent that the reason Black English is looked past as being a language is not because of what he or she is says but what he or she represents. Language is directly linked to cu lture, refusing a language directly dishonors its culture. Baldwin argues that no matter what people say, they are judged on the way they speak. He firmly states, Language, incontestably, reveals the speaker. (pg. 532) This further explains the occurrence that the Black community is seen as unequal because of this barrier in unacceptable tongue. The word black itself is negatively correlated throughout language. For example blacklist, black humor, black hole, black cat, blackmailed, and the black mark... Oppresive Force Essay -- essays research papers Oppressive ForcesAmy Tans Mother Tongue and James Baldwins If Black English Isnt a Language, Then Tell Me, What Is? discusses the power in language and how it is defined as a tool for communication but is used to shape peoples perception of others. Both Tan and Baldwin state that language is used as an oppressive force that doesnt properly acknowledge minorities and the lack of proficiency in standard English doesnt al low them to participate with society equally. Within Baldwins essay he makes it clear that the black community is not accepted because of the language in which they speak. It isnt the fault of the language but the role in which society refuses to acknowledge their history. He states, It is not the black childs language that is despised. It is his experience. (pg 534) He is arguing that the reason Black English is looked past as being a language is not because of what he or she is says but what he or she represents. Language is directly linked to culture, refusing a language directly dishonors its culture. Baldwin argues that no matter what people say, they are judged on the way they speak. He firmly states, Language, incontestably, reveals the speaker. (pg. 532) This further explains the fact that the Black community is seen as unequal because of this barrier in unacceptable tongue. The word black itself is negatively correlated throughout language. For example blacklist, black humo r, black hole, black cat, blackmailed, and the black mark...