Hyphenated American

Chinese Americans tend to keep their separate identity In the United States, there are multiple hyphenated Americans groups, such as African- American, Asian- American, Irish- American, and Indian- American. People hold American nationality, but have a foreign birth or origins tend to identify themselves in some term of Hyphenated Americans. It means that they are not only Americans, but also involve in different ethnicity, religion, language, and culture. Chinese- Americans comprises the largest ethnic group of Asian Americans.Most of the early Chinese workers immigrated from Guangdong province in China for the Gold Rush (â€Å"Chinese Immigrants and the Gold Rush†, n. d. ). Since 1865, lots of Chinese worker come to the United States and worked on the famous Transcontinental Railroad project. The Chinese also worked as small merchants, gardener, laundry workers, farmers, and so on. More and more Chinese Americans immigrated with their children from mainland China, Hong Kong, Macau, and Taiwan(â€Å"Chinese Historycal Society of Southern California†, 2010).The Chinese Americans try to keep their Chinese culture, language, and community, and they tend to retain the separate identity. Chinese Americans tend to live together in their own culture community. According to the 2010 census, the Chinese American population was around 3. 8 million, and half of them lived either in  California  or  New York (â€Å"Race Reporting for the Asian Population by Selected Categories: 2010†, 2010 ). The Chinatown in San Francisco was the oldest and largest Chinese community in the United States.People can find Chinese culture elements everywhere in the Chinatown, for example, herbal shops, temples, dragon parades, Chinese book store, Chinese restaurant, Chinese language school, and even Chinese hospital. People living in the Chinatown communicate in Chinese language, and live exactly the same life style as people in China. Chinese Americans in New York also have such community in the Flushing area, know as Chinatown. There are Chinese transportation companies; travel agencies, and Chinese language school also. Almost every child in Chinese American family has attended Chinese language school after their regular school time.Their parents want them to keep ancestor’s culture, so they will always remember that they are rooted in China. There is a Columbus Chinese Christian Church in Columbus Ohio. Every Sunday, thousands of Chinese American Christians living in Columbus get together and model in the bible through teaching, music, and worship. After the teaching, people share a big dinner of Chinese food. Most of them speak Chinese, and only the new generations who were born in America prefer to speak English. Many of the old immigrated Chinese American even cannot speak English at all.Even though the kids speak English with each other, they can still speak frequently in Chinese with their parents. Chinese Americans stay in th eir own community to retain their culture, language, and customs. Chinese Americans are pride of their ethnic and culture. Music and dance are the common language among all human being. Chinese Americans hold Shen Yun performances all around the United States to spread Chinese art and music. Every year, students can see posts about Shen Yun performance on the wall around the OSU campus. The video Shen Yun 2013 Trailer on the Shen Yun website also shows some significant parts of the performance.Dancers wearing different styles of Chinese traditional ancient clothes performed the Chinese cultures of different dynasty and different ethics. The music play by Chinese traditional instruments was as good as the dancing. As it said in the video, the aim of the performance is to revive 5000 years of divine civilization. It shows Chinese Americans’ strong sense of pride of Chinese culture. Many of the new generation of Chinese American, which is also known as American born Chinese (ABC ), had a hard time to define themselves identity.A short story named â€Å"The Paper Menagerie† written by Ken Liu won the 2012 Hugo Awards. This short, bittersweet story describe Ken suffered a pain of having a Chinese born mom who was different with every else’s mom, also, whose accent and broken sentences embarrassed him (Ken, 2012). His mom taught him Chinese, cooked Chinese food, and made him Chinese tradition paper animals as toys. She liked to see the Chinese parts in her son. However, he hated his chink face and all the other Chinese parts from his mother. He refused to talk to her in Chinese even though she can barely speak English.After reading her lasting letter inside the paper animals after his mother’s death, Ken finally understand his mother’s life and know how much she loved him (Ken, 2012). There is an America born Chinese girl Amy Tan who define herself a completely American, and she wants nothing to do with China. However, she actually struggled a lot about which country she truly belongs to. Then she had a trip back to China with her mother. Tan said that once she touched Chinese soil, she better understood her connection to the land and to the country.She finally understood how she belongs to two cultures at the same, which make her accept her hyphenated identity, and view herself as a Chinese American. She said â€Å"I discovered how American I was. I also discover how Chinese I was. I discovered a sense of finally belonging to a period of history, which I never felt with American history†. She realized that â€Å"Once you were born Chinese, you cannot help but feel and think Chinese† (Lemontree, n. d. ). Ken and Amy all tried to refuse everything about China, and they want nothing to do with Chinese.Finally, somehow, they find the way to connect their Chinese heritage and American nationality, and they accept themselves as who they are. American born Chinese new generation all suffered from an un expected pain of trying to belong. They have Chinese faces; they were mostly raised up in Chinese community and eat Chinese food; they have Chinese friends and their family members speak Chinese at home. They don’t know which nation and culture they truly belong to. Sometime they feel embarrassed about having such a different family, and try to integrate into the American society.Their parents hope they can hold the hyphenated identity, because they are pride of Chinese ethnic and culture. Young generations always refuse to do so, but the Chinese heritages do exist in their body, and will have influences on their life. They need to honor their ancestor’s culture and accept combination of being Chinese and American. Reference Chinese Historycal Society of Southern California. (2010). Retrieved on Nov. 21, 2012, from http://www. chssc. org/history/histtimeline. html Chinese Immigrants and the Gold Rush (n. d. ). Retrieved on Nov. 21. 2012, from http://www. pbs. rg/wgbh/a mex/goldrush/peopleevents/p_chinese. html Ken,L. (2011). The Paper Menagerie. Fantasy & Science Fiction. Retrieved on Nov. 21, 2012, from http://a1018. g. akamai. net/f/1018/19022/1d/randomhouse1. download. akamai. com/19022/pdf/Paper_Menagerie. pdf Lemontree. (n. d. ). Hyphenated Identity: A Long Research Journey, Retrieved on Nov, 21, 2012, from http://ayjw. org/articles. php? id=696640 Race Reporting for the Asian Population by Selected Categories: 2010. (2010). U. S. Census Bureau, Retrieved on Nov. 21, 2012, from http://factfinder2. census. gov/faces/tableservices/jsf/pages/productview. xhtml

In Buried Secrets: Truth and Human Rights in Guatemala Virginia Sanford

In Buried Secrets: Truth and Human Rights in Guatemala Virginia Sanford goes into the heart of Guatemala to six different locations of clandestine cemeteries to interview survivors of mass suicides that occurred during the period that is now known as La Violencia. Sanford strives to give voice to the Maya, who have been silenced all these years, and chose to have them write their own history of what happened during those dark years.By uncovering the dark secrets of the Guatemalan National Revolutionary Union as well as those of the Guerilla Army of the poor, the Guatemalan people were able to begin to heal, to find justice, to become inspired to organize again for social change and to ultimately take control back over their own lives and participate in the democracy that they paid so dearly for (p. 73). Sanford constructs a â€Å"phenomenology of terror† through a forensic anthropological study of the clandestine grave sites at six different locations across Guatemala that the crimes against the Maya ultimately resulted in attempted genocide.These massacres occurred during a period known as La Violencia (1978-1982) under the regime of General Lucas Garcia (1978-1982) and General Rios Montt (March 1982-Aug 1983) (p. 14). According to Sanford, La Violencia went from selective terror into mass terror culminating in the â€Å"scorched earth† campaign and ultimately the violence did not cease until the disarming of the last civil patrols and the signing of the 1996 Peace Accords (p. 15).The Maya were the weak common people caught in the middle of a vicious war between the communist guerilla and the Guatemalan National Revolutionary Union (GNRU); where both sides took advantage of the Maya using them for food and shelter and killing them with little thought if they got in the way for any reason (p. 101). The Maya were simple farming people for the most part and their rights were easily stripped away and they were treated like slaves for years and after La Violencia, they were left maimed, poor and powerless.The phenomenology of terror that Sanford constructed from the death records, bone analysis, testimonio and other public records/media consists of seven escalating phases of violence and domination (p. 32). . Through analysis of these phases Sanford proves the depth of the GNRU’s crimes and therefore brings them out in public for the Maya people to begin their process of healing. The phemomenology of terror starts with the â€Å"pre-massacre community organizing† which amounted to the Maya’s attempt to better their own community often through the local churches to build infrastructure for clean water etc.Because this organizing sometimes included guerilla organizing (which Sanford indicates was often brought about by fear tactics on the guerilla’s part), it attracted violent repercussions from the GNRU (p. 127). The phase two, â€Å"the modus operandi of army massacres,† Sanford describes as th e beginning of genocide because the GNRU felt they could not prevent the guerilla from organizing and they used this as an excuse to kill innocent civilians who might or might not have been involved, in order to scare everyone else away from the idea of helping the guerilla (p.129). In the â€Å"post-massacre life in flight,† or phase three, the Guatemalans fled the killing fields of their own villages and took refuge in the mountains with little or no supplies or protection against the elements and many of them died of illness or exposure. The guerilla found them here too and sometimes forced them to kill their own children in order to survive (p. 132). In phase four the â€Å"army captures a community† and the Maya were basically treated like prisoners of war: they were tortured, raped, punished, and were forced to work for their food (p.135). In phase five, â€Å"model villages,† the Guatemalans experienced something similar to German concentration camps wher e they lived under constant military control and were forced to work under fear of being tortured or killed (p. 138). In phase six, â€Å"the ongoing militarization of community life,† the civil patrollers, or police, were handed over control from the army but the struggle was still the same, the Maya continued to experience torture and abuse of power(p. 141).In Sanford’s last denoted phase titled â€Å"living memory of terror,† the Maya struggle to put their lives back together while living in terror and with diminished rights. The police continued to control their lives and prevent them from bettering their communities in any way (p. 143). The uncovering of the phenomenology of terror is precisely how the healing process was instigating. The Maya people realized their need for healing when the bodies of their loved ones were being uncovered and when they heard the stories of their peers being told and realized that their own story needed to be revealed as well .Sanford chose multiple excavation sites in order to have a variety of communities but also so that she could generalize. The communities she chose included: Ixil, K’iche’, Kaqchikel, Q’eqchi’ and Achi villages from the northwest highlands to the central lowlands to the eastern mountains (p. 17). Uncovering these clandestine grave sites amounted to taking back their villages, taking back their loved ones and giving them the respectful burial that they deserved. In doing this it created a political space that was stolen from the Maya in the reign of terror (p.73). This political space allowed the people to come together and gain power in numbers; they never allowed themselves to be separated off so that no one person could be sacrificed for the cause of bringing out the truth of these massacres. Even those who still believed that the GNRU were telling the truth about the massacres, that the only people killed were communist guerillas, were brought to see t he truth about La Violencia because â€Å"the bones don’t lie† (p. 47).Even military officials came to give public recognition of the murders but gave many justifications for their ruthless actions (p. 16). After Sanford herself uncovered a woman’s corpse face down in a mass grave holding a small baby, it became clear that civilians, including women, children and the elderly were a large part of the sacrifice made at mass executions made by the GNRU (p. 43). Records indicate that most of the bodies at the Plan de Sanchez site were women, children and elderly (p. 47).The Maya went to the Ministerio Publico (prosecutor) as a group and said, â€Å"We want a Christian burial for our families because they aren’t dogs, and we don’t want them piled up in those graves like dogs† (p. 39). They were not put down by the Rabinal when they were ordered to attend a meeting that amounted to them trying to control the Maya and prevent them from colluding wi th the foreigners to uncover the truth. â€Å"Leave the dead in peace† the sub-commander told them, but the Maya already knew that the dead were not in peace and stopped at nothing to uncover the rest of the truth so that they could be (p.44). By pushing forward and sticking together the Maya was able to strip the power from the â€Å"memory of terror† to hold them down and instead used it to drive them forward for change and justice (p. 230). Sanford shows that the excavation process gave healing through several different avenues, besides giving the Maya strength in coming together and publicly revealing the truth, the excavation also brought healing through religious ritual and public consecration of the burial sites.The rituals at burial sites â€Å"implicate the enactment of deeply held beliefs about the individual and community identity and reckoning in the past as well as the present† which Sanford believed was the powerful key to opening a future for the Maya in their own broken land (p. 40). Long after the confession and re-burial, the temples built on the sites allowed the Maya to continue their grief process and to continue to heal and have a place where they could go for remembrance of their loved ones and the pain they experienced (p. 245).In addition, the exhumation inspired the local people to organize once again to try to better their communities and used the memory of terror as inspiration to work hard for change rather than allowing it to hold them down in fear (p. 211). These local initiatives included things such as support groups and groups advocating yet more exhumations. (p. 243). Sanford describes another type of healing that took place because of the exhumations and resulting testimonies that amounts to the clinical treatment for Post Traumatic Stress Disorder: testimonial therapy (p. 239).By giving survivors the chance to â€Å"understand the impossible nature of the situation to which they had been exposed† and to transfer â€Å"the burden of responsibility to the perpetrators of violence and to the repressive structures that fomented their traumas† they were able to heal the emotional wounds of those experiences (p. 241). The final step in healing is providing the people with justice through charging those guilty of leading the massacres. Ultimately the confessions and the exhumations helped to bring those guilty of these horrible crimes to light for the sake of justice.The Maya faced the obstacle of â€Å"auto-limpieza,† which was the act of killing those who were in charge of giving orders for the military on behalf of the men who were in the upper echelons of the military power structure—in other words, the men who could tell the truth about who was ultimately responsible for these massacres were killed (p. 211). In addition to this obstacle, the government attributed any challenge to their authority to equate to a national security threat. So when the Maya be gan to search for those guilty of these war crimes, they faced the old threat of terror (p.251). According to Sanford, â€Å"justice, rule of law, and truth commission are now seen as a critical step for societies experiencing the transition from military rule,† therefore it was of utmost importance to the Maya to pursue justice and bring closure on the dark La Violencia era (p. 249). With the help of other Central American countries and international organizations such as the Human Rights Watch and the United Nations, the Maya people were given the added strength to bring justice to at least a few war criminals.Without their help the Maya may never have been able to overcome the memory of terror which stood in the way of them being able to participate in the democracy that they paid so dearly for (p. 253). Ultimately the trials of the authors of this violence helped to construct, â€Å"a viable democracy by demonstration that the rule of law extends to the powerful as well as to the poor† (p. 270). In conclusion, Virginia Sanford shows through a forensic anthropological study of the massacre sites that genocide did indeed occur against the Mayan people and she lays out the timeline of violence in seven phases that she calls the phenomenology of terror.Through the process of constructing this phenomenology the Maya are brought together again and inspired to better their community and fight for justice. They experience healing through testimonio (of their PTSD) and through public recognition of their loved one’s sacrifices in religious ritual and the consecration of the burial sites. By consecrating those public spaces and bringing to justice those who were responsible, the Maya were able to break fear of the memory of terror and take their rightful place in the democracy that they paid so dearly for.

NASCAR Marketing Stategies Research Paper Example | Topics and Well Written Essays - 1000 words

NASCAR Marketing Stategies - Research Paper Example The company uses news report advertising genre. The news networks report the race results of the NASCAR race events. The newspaper, radio, television, and internet genre report NASCAR race schedules, results, and other pertinent NASCAR topics. Further, NASCAR embarked on a very aggressive marketing plan. The company’s holding of regular car racing events precipitated to a growing racing fan database. The company’s aggressive marketing plan included the setting up of its online marketing website, http://www.nascar.com. The current and future customers can open the company’s website to get additional information about future race schedules. The current and future customers can also view the company’s websites to get updates of car racing entries, car racing results, and car racing promotional products. The company’s racing events has created a mindset among its current and future customers that watching a car race is like visiting an unforgettable cel ebrity night out. After seven continuous researches on car racing, NASCAR unfolded it architecture race car of the future. The new NASCAR car model promotes higher racing speeds. The new NASCAR car model allows more advanced car racing safety procedures (Solomon, 2008). By setting up its won online website, the company advertises its NASCAR racing events to current and future customers around the world. ... The NASCAR website mentioned that both Frank Sinatra and Brad Keselowski â€Å"did it their way† (www.NASCAR.com). Further, NASCAR racing events are major news topics. Consequently, many people are eager to hear news reports pertaining NASCAR racing events. Many television stations air the NASCAR racing events live. By watching the NASCAR racing event, the television audiences are glued for several hours to the suspenseful NASCAR racing action. During the entire time, the television audience views the NASCAR name. NASCAR race lovers meet to discuss their favorite pastime, watching the NASCAR games. ESPN, a 24 hour 7 days a week television station shows the NASCAR racing events both live and on a delayed show basis (http://espn.go.com/racing/NASCAR/). Furthermore, NASCAR uses the entertainment genre to advertise its brand. The entertainment avenue is sports. The mere mention of the word NASCAR immediately brings to mind the racing sports. The NASCAR advertising scheme is to con nect with the product, NASCAR, with its product consumers. The company targets sports consumers, people who love car racing (Guinn, 2011). Moreover, NASCAR racing started prior to 1959. Colin Chapman joined the Formula 1 car race in the Indy NASCAR racing circuit. Colin Chapman entered his formula 1 car in the NASCAR races. After the tryouts, Mr. Chapman qualified to join the main NASCAR races. Chapman was one of the most successful NASCAR racers of all time. Another NASCAR Racer, Mr. Paul Goldsmith, was inducted into NASCAR’s Auto Racing Hall of Fame in 1958. (Wheeler, 2010). Description of the phenomenon that occurs when Companies get their name on a car. When people get their name on a NASCAR Racecar, the name is advertised around the world. The whole world sees the advertised brand

Pilosophy of Community Policing Essay Example | Topics and Well Written Essays - 500 words

Pilosophy of Community Policing - Essay Example The notions of team work and leadership management are those to be learnt by the police of today and future (Trojanowicz & Bucqueroux, 2004). Community policing officers are â€Å"to be particularly thoughtful, creative problem solvers†, and preferably to be of the local residents (Carter 1997). After you’ve got the people you need, it is necessary to provide training, fair working conditions, permanent evaluation, appraisals, professional development, and always be ready for changes. Community policing requires unique strategies and decision in each locality, ability to build strong and lasting relations, based on co-operation and trust. It is a long-term, on-going, iterative process, demanding constant attention and flexibility. This all requires funding and governmental support. These features and requirements of the philosophy make it not that easy to implement the community policing everywhere and simultaneously. 2. Brock University Campus Security Services (2007) describes five generally accepted and interrelated components of Community policing, including: Enforcement, Continuous learning, Community development, Security Service re-engineering, Community/Security partnerships. Enforcement is an active component responding to the safety concerns. Each platoon is responsible for the community involvement into objectives determining and enforcement priorities. Continuous Learning is an imperative for both the police of all ranks and community members. It is key for revealing the commitment to the philosophy. Community Development suggests the full partnership of community and police in developing crime prevention program and public education, development of communication and cooperation. Security Service Re-engineering presupposes on-going, iterative, adaptable strategy in developing programs addressing the needs of the community. Community/Security Partnerships means â€Å"a full and equal partnership and meaningful dialogue with internal and

Research report Essay Example | Topics and Well Written Essays - 750 words

Research report - Essay Example Some of the events that took place in the US music industry in 1993 included; the stamp named Elvis Preley that was given out by the US postal service on the 8th of January that year. Also, the original soundtrack album named the bodyguard was ranked first in history. Since then Nielson Sound scan came up with a monitoring systems that had computerized sales in May of 1990 for selling of copies that exceeded on million in one week in the US on the 9th of January. On 12th of January cream reunited for a performance in the induction ceremony of rock and roll hall of fame. On the 13th of the same month bobby brown became arrested for simulating an act that was sexual on stage. This happened in Augusta, Georgia, USA (Tschmuc, 35). On February same year many events took place that include; interviews of Michael Jackson by Oprah Winfrey on the prime time special of the US Television on 10th. This was the Jackson’s first interview in 14 years and was the interview that was most watched in the history of television. On 14th Harry Nilsson suffered a heart attack that was not fatal. Some of the events that took place in March same year included; Patti Labelle was honored as star of the walk of fame of Hollywood in USA. On 4th, Depeche Mode was ranked the first band in Britain to achieve the first position in USA in the 200 billboard which performed the album known as songs of faith and devotion. On the 29th, the suede album eponymous debut was released. It entered 1st position in the album chart as it was the fastest moving album in terms of selling in Britain. This was a new record in the UK act (Unterberger, Samb and Jennifer 14). In April the events that took place included; Jay Roach who was a screen writer married Bangles’ Susanna Hoff’s in Los Angele, USA on 17th. On 22nd, a Broadway was opened by The Who’s Tommy. On 29th, the Barry white animation version was shown in the episode cartoon series of the US television. On the 7th of June which was

Ethical Dilemma Research Paper Example | Topics and Well Written Essays - 750 words

Ethical Dilemma - Research Paper Example It is done to enhance breathing especially in patients who are intubated for a long period. The Code of Ethics for Nurses was produced as a guide for performing nursing responsibilities in a way steady with excellence in nursing care as well as the ethical requirements of the profession. The four main principles are autonomy, beneficence, nonmaleficence and justice (Seifert, 2008). Autonomy principle states that every person must be given the time, respect, and opportunity essential to make her/his own decisions. The nurse should understand that patients have the right to make decisions basing on their beliefs as well as value systems. Patient’s choice and decisions should not be limited by a nurse. All patients should be given informed consent even as they make their decisions. This is a fair, equal as well as appropriate treatment to a person. Every patient has a right to health care. Thus, each patient should be treated equally regardless of ethnicity, socioeconomic status, race or gender (Seifert, 2008). This is a principle that means ‘do no harm’. It relates to nurses obligation to help the patient and not inflict any harm. The nurse should prevent as well as remove the harm from the patient. Furthermore, the nurse should do good to the patient. This principle is applicable where the bad effect must not be the means of the good effect, and the good effect must prevail over the evil that is allowed. The first code is that â€Å"the nurse in practices and relationships should act with compassion as well as respect for the innate work, dignity, and uniqueness of all individuals unlimited by considerations of economic or social status, personal attributes or the kind of health issue†. The nurse in this case should act with compassion empathize with the patients mother and respect her uniqueness. The second code is that â€Å"the nurse’s basic commitment is to the patient, who can be an individual, group, family or community. The nurse

United Nations Essay Example | Topics and Well Written Essays - 1250 words - 1

United Nations - Essay Example Members are joined together and bound by treaties signifying their participation within the larger UN political framework. The political decisions of member-states are thus constrained by their allegiance and signatory status to overarching United Nations treaties. Established in the wake of the Second World War, the United Nations was created to ensure that the horrors of World War II never happen again. Since the United Nations represents multilateralism, collective decision-making and negotiation on a global scale it is the most pronounced example of a supranational political body ever created. Seeking to explore the history, purpose and goals of the United Nations, this essay will provide a holistic analysis of the United Nations. A supranational organization which evolved in the aftermath of the horrors of the Second World War, the United Nations was created with the goals of ensuring that the calamity of the Second World War never occurs again through peaceful diplomacy and collective negotiation through intercultural communication. This essay will describe the emergence of the United Nation as a viable multilateral organization, explain the reasons for its emergence and discuss the goals of this supranational body. Why was the United Nations established and what role does intercultural communication play within the UN? These questions, and many more, with respect to the development of the United Nations will be analyzed and discussed in depth. We will then summarize our analysis and conclude with a concise overview of the UN. An international organization which promotes world peace through a variety of social initiatives, the United Nations grew out of the calamity of the Second World War. Presently composed of 192 member states from all corners of the globe, members of this multilateral organization include nearly every recognized country in the world and membership in the UN is considered the international stamp of

Foreign Hospitality Industry in Switzerland Research Paper

Foreign Hospitality Industry in Switzerland - Research Paper Example   It is strategically located in the center of Europe, which ensures easy accessibility of all European markets. It is referred to as the center of competitiveness in Europe, as it plays an important function in financial markets internationally. It is also the center for many international organizations like World Trade Organization, WHO, and UN, among others. Therefore, the hotel industry can do well here as there are many potential customers who have to eat and spend in hotels.   Presence of international trading companies, law firms, and insurance companies, freight forwarding companies, security firms and surveillance firms certify Switzerland as a truly global business center. Switzerland has greatly improved over the past years as an investment center. It continually enhances foreign and domestic investments through improvement of circumstances and conditions. The improvement over the past years as an investment center is rated as follows;   Expansion of Mirvac group of hotels to Switzerland will improve the company’s reputation and image. Switzerland is an international country and presence of these hotels will ensure its loyal customers get their services, away from home. It will also make it be recognized internationally, as many foreigners come here. Therefore, it will market it internationally, and hence, investing in other countries will also be easy. Investing in Switzerland is, therefore, an important strategy for the company’s future prospects.   Globalization has had various effects on the industry of hospitality. The positive impacts are exposure to diverse cultures, large market, economic development, technology advancement, promotion of creativity, increased job opportunities, development of travel industry, and availability of international services. Exposure to different cultures will help managers in the hospitality industry to learn different cultures as they interact with people from different walks of life.

International Finance Assignment Example | Topics and Well Written Essays - 1250 words

International Finance - Assignment Example For cash payments, it can sell the 90-days forward contract to buy US$ at 1.6930. At the expiry, the company will have to sell C$6,237,448 to buy the US$10,560,000. Furthermore, for the receipts the company will have to buy C$ at 1.6960 where it will be selling US$1,560,000 to buy C$919,811. Keeping in view the costs of transactions, the company can sell the 90-days forward contract to hedge the net cash flows of US$9,000,000 at bid rate of C$/US$ 1.6930. The amount payable will be C$5,316,007. ii. Money market hedge on payables will involve taking money market position to cover the future payment. Kennedy Plc can either use its own funds for the hedge or it can borrow the funds in home currency (C$) and make a short-term investment for 90 days in foreign currency. C$ borrowing rate = 3.5625% US$ deposit rate = 2.25% It needs US$10,560,000 in 90 days, therefore, the amount needed to be deposited in US$ is US$10,560,000 / (1 + (0.0225 * (90/360))) = US$10,500,932 Deposit amount in C$ = US$10,500,932/ 1.6875 = C$6,222,774 This amount can be borrowed at an annual interest rate of 3.5625%. C$ amount of loan repayment after 3 months = C$6,222,774* (1+ (0.035625 *(90/360))) = C$6,278,196 Therefore, the company would borrow C$6,222,774 at 3.5625% p.a. for 90 days. Convert the amount into US$ at spot rate of 1.6875, which will amount to US$10,500,932. Deposit this amount at US$ money market deposit rate 2.25% p.a. for 90 days. This will give the amount to be paid i.e. US$10,560,000. At the end of 90 days, Kennedy will make the loan repayment of C$6,278,196. This hedge will allow the company to fix the amount to be paid after three months. To hedge the receivables: Amount expected to be received = US$1,560,000... There are mainly three types of foreign exchange risks or exposures.This is also known as accounting risk, which a firm faces when it has subsidiary operations in other countries. When the foreign exchange movements adversely affect the translated values of assets and liabilities of the subsidiaries, it becomes an unwanted exposure for the parent company’s consolidated financial statements. This risk can be hedged by using currency futures, currency swaps etc.Transaction Exposure: This exposure is related to the future payments and receipts in foreign currency. Companies many a times limit this type of exposure by requiring the cash flows to be received and made in the home currency rather than foreign currency. Another way to minimize this risk is netting out the exposure by a lot of different currencies or only in one currency (Jacque, 1997, p.177). This is done by large corporations with significant amounts of international operations. Other techniques for alleviating short -term currency risks are currency forwards, currency futures, money market hedge, option hedge and cross hedge (Kelley, 2001, pp.32-34).Economic Exposure: This exposure is faced by corporations with large international presence and relates more with the net present value of future cash flows of a firm. The management of economic exposure involves the use of complex instruments and strategies besides the foreign exchange management (Ajami and Goddard, 2006, pp.110-111)

What is extreme poverty To what degree would you describe meeting Goal Essay

What is extreme poverty To what degree would you describe meeting Goal 1 Target 1 of the Millennium Development Goal as a success - Essay Example With it there has been a considerable drop in incomes which resulted in additional 50 million people being left in extreme poverty in 2009. Based on the projections the global poverty which is measured at $ 1.25 a day will fall to 15 percent by 2015 and it will leave 918 million people below the poverty line. Though over the past three decades poverty has declined rapidly, but human society still faces complex and urgent challenges. Worldwide more than 1 billion people live in a state of destitution. With rise in social exclusion and inequality the problem of extreme poverty is rising. This report will take a look at the extreme poverty and the various goals regarding it. In 2013 the Board of Governors of World Bank has endorsed two new goals. First is that the World Bank Group will commit its energy into bringing an effective end to the extreme poverty by 2030. This means that that they have to reduce it to no more than 3 percent the fraction of the population of the world who are living on less than $ 1.25 percent per day. The second goal is to ensure that the benefits of prosperity will be shared by promoting income growth of the bottom 40 percent of the people. The World Bank group aim at achieving both the goal in a sustainable manner and hence help secure the long term future of the planet and its resources (Và ¶rà ¶smarty, and et.al. 2010, p. 173). The World Bank originally defined extreme poverty as individuals who are living on the equivalent of less than $ 1 per day. In 2008 it was then updated to $ 1.25 per day. In 1990 the number of people living in extreme poverty was estimated at 1.2 billion. According to World Bank the percentage of people living in extreme poverty globally will fall to no more than 3 percent by 2030 (United Nations, 2010, p. 351). In 1980s it was common for the nations to use their general economic surveys and national income accounting for identifying a poverty line (Rogers, Jalal

Critical Issue in Education Essay Example for Free

Critical Issue in Education Essay Education is the key determinant of development in any country in the contemporary world. Human capital development plays an important role in the overall development of any country. Schools have a common mission of providing students with developmentally appropriate education which emphasize high academic performance in addition to the student becoming socially responsible. In the long run, education is aimed to earn the students skills and knowledge that encourage them to be productive, responsible citizens in the dynamic global society. The government and teachers have a common vision in supporting education programs and students. The vision of teachers is to produce citizens who will participate productively and responsibly in a rapidly changing society through using problem solving techniques to handle everyday challenges, communicating effectively, respect of self, others and environment in which they are working in. School leaders encounter a multitude of critical issues while carrying out their day to day responsibilities and this pose a challenge in the realization of the vision and mission set by the school. The challenges experienced in most American schools include school violence, low performance due to introduction of bilingual system of education among other challenges. This paper will discuss challenges that are facing school leaders today as a result of school violence. This paper will identify several causes of school violence and the appropriate measures taken to curb the problem. What is the issue and why is it critical for schools/school leaders? School violence has affected the academic performance in schools and therefore the problem must be addressed to realize improved performance. Population is growing rapidly as indicated by the high number of students in public schools as compared to educators. Leadership in schools is been blamed for the continued increase of the school violence problem. However, discipline management in schools especially public schools has become difficult due to the high ratio of students to teachers. It becomes to do individual student follow-up. Most educators have also fallen victims of school violence and therefore some have been silenced due to improper organizational structure to govern student behavior. Students have been noted to riot while educators are in class and this raised alarm over student behavior management. School leaders experience a problem in controlling school violence due to inadequate support from parents especially those who argue that their kids must carry weapons to school for self defense due to increased insecurity in schools. Literature Review Many researches on school violence indicate varied results as to the causes of the social dysfunction. Forensic psychologists who study criminal behavior argue that school killers are very different from other violent youth, such as gang members or drug dealers. The school killers usually experience inferiority complex by feeling powerless and therefore become obsessed with killing or injuring others. The school killers hence direct their threats to those that threaten them or taunt them. Social loafing has been argued to increase incidences of violence in schools. Some quiet decent students become violent when in a group during a school riot or mob justice incidence. Students engage in mob justice when confronting people who attack those using guns as a defense mechanism. School viol4ence continues to create an on going challenge to the nations educational environment. To address the problem of school violence in the United States, it demands collaboration among educators, students, parents and social service organizations in analyzing the problems that are facing the student community, their causes and effect of the school violence. The stakeholders should then jointly find lasting solutions. Research indicates that children look for caring adults up to adolescence who can share with them about the critical issues facing them. Freud, a psychoanalyst theorist argues that early life experiences where children are exposed to violence at home and community around them may have a deepening effect which pushes them to violence. Criminologists, physiatrists, counselors have put the blame on the media for providing a steady diet of movies where violence is glorified and on the evolution of single parent homes. Kids who watch violent movies usually perceive violence as fun and adventurous. Moynihan in his article Deviancy Go Down argues that kids from single parents are more likely to engage in robbery with violence, rape and other social disorders because in most cases the single parent is financially unstable and therefore the kids look for alternative ways to achieve the socially approved goals. Lack of respects and accountability at homes has contributed to lack of respect for the law. Survey indicates that its common for police in the U. S. to encounter kids between ages 7 and 8 who disrespect law (Dewey, 2006). Research indicates that inequalities in the education system has contributed top the problem of increased school violence. Discrimination of some cultures, races has also led to higher levels school violence among the African-Americans who perceive that the education system disfavors them. The socio-economic disparity between Whites and blacks create rivalry between Whites and blacks. The black kids perceive that their White counterparts are being favored because of their color and social status. Research indicates that most cases of school violence go without report and its on the rampant rise. Physical violence at homes, appraisal of violence movies and bullying are identifies as major contributors of violence in American schools. What does the research say about this issue? School violence has become a social problem not only in the United States but also in Australia and England. National Center for Education Statistics (NCES) conducted a survey in American schools in 2003 and reported that 5% of students between ages 12 and 18 have been involved in nonfatal crimes, 4% in theft crimes while 1% of the student population had been reported as victims of violent crimes. The rate of school violence is reported to be higher in public than in private schools as indicated by the ratio of 7: 5 percent (National Center for Education Statistics, 2003). A national survey indicated that rural students had a high probability to be bullied in school than their urban and suburban counterparts. This is mainly because the rural students are generally considered to be innocent and highly regard social unity and harmony, due to difference in socialization from urban and suburban counterparts. Socialization is the process by which beliefs, norms and culture are passed from generation to generation. There are two types of socialization which include primary and secondary socialization. Primary socialization usually takes place at tender age, that is, up to 6 years. The children learn through imitation of family members, relatives and neighbors who are close to the kid. It lays a foundation for the secondary socialization. Secondary socialization agents are mainly teachers, peers and media. A national survey undertaken in 1999 among high school students indicated that 7% of students carried a weapon to school in the last month, 14% said they had been involved in a physical fight in the school premises in the past year while 5% of the students had misses school at least once in the past month because they felt unsafe in school. 1999-2001 national survey undertaken by National Center for Education Statistics indicated that 20% of all public schools experienced one or more serious crimes such as rape, sexual assault, robbery and aggravated assaults (Henry, 2000; National Center for Education Statistics, 2003; Dewey, 2006). Public schools in particular reported 71% incidences of violence and 46% of theft. Violence in schools is on the rise worldwide. However, its hardly reported until a kid picks a gun and slaughters another. A nationwide study undertaken by the National Center for Injury Prevention and Control on violent deaths in U. S schools indicated that 77% of the school deaths were done using guns while 17% were done using knives. A study conducted between July1, 1992 and June 30, 1999 indicated that out of 323 school-associated violent death events were mainly carried by firearms obtained from the perpetrators homes or from friends and relatives (Center for Disease Control and Prevention, 2003; Dewey, 2006). National Center for Education Statistics national study in 2003 indicates that male students are more likely to fall victims of school violence than their female counterparts (National Center for Education Statistics, 2003). 17% of high school girls have been reported to be abused physically while 12% of high school girls are sexually abused (The National Center on Addiction and Substance Abuse at Columbia University, 2003). Survey carried out by Justice Department in U. S in 1992 indicated a remarkable decrease in violent crime victimitization at school between 1992 and 2001 from 4. 89% in 1992 to 2. 8% in 2001. A study on school crime and safety in 2003 indicated that from 1997-2001, teachers were victims of approximately 1. 3 million nonfatal crimes at schools including 817,000 thefts and 473,000 violent crimes such as rape or sexual assault and aggravated or simple assault(Department of Education and United States Department of Justice, 2003; Dewey, 2006). School violence has become a major concern among many individuals worldwide. School violence not only affects students but teachers too. School violence has contributed to 57% deaths that occur in schools (Dewey, 2006). Exposure to violence to kids at tender age has been argued to contribute greatly to the kid been violent at school. School violence has become a determinant factor in the performance of schools. Most students fail to go to school at least once in a month for fear of being physically assaulted in school. Availability of guns in most American states has contributed greatly to the violent incidences in schools. Teachers have declared school violence as a monster affecting performance in schools. Public schools which usually have a high population of students experience the problem of school viol3nce more than private schools. This may be contributed by the high ratio of students to teachers in public schools. Some parents too have contributed to the problem of school violence because they forbid teachers to discipline their kids when they misbehave. Have Others Addressed the Issue School violence has become a significant social problem that affect the security of most schools worldwide. Various institutions and organizations have proposed solutions to solve the social problem in schools. Some propose a solution by encouraging students to engage in mob justice against those students or individuals that use guns in school. Some educators too carry guns as self defense mechanism. This has resulted in more harm than good. Most states in America have approved that educators should discipline students who are caught in engaging in violence. Some states have established juvenile delinquency rehabilitation centers where violent students are taken so as to reform. However, the centers have become overcrowded and this has reduced the effectiveness of the solution. Findings and Conclusion The problem of school violence is increasingly becoming rampant especially in the last 15 years. Research indicates that the problem can only be solved if and only if there is collaboration between educators, parents, students and social service organizations. Neglect of kids by parents especially due to commitment to jobs has deprived the kids parental guidance in handling everyday challenges and thus they follow their peers and mass media advices which in most times are incorrect (Edwin, 2004). Youth violence has increased significantly in the U. S over the last 15 years. Homicide has become the second leading cause of deaths for persons between ages 15 and 24 and the leading cause of death for African-Americans in this age group (National Center for Education Statistics, 2003; Centers for Disease Control and Prevention, 2003). However, most cases are never reported in the national data so the magnitude of the problem is always underestimated. National level data indicates that middle and high schools especially larger schools are at high risk for serious violence. The problem arises from the difficult in administration of discipline among the students who are usually too many for the school leaders or educators to handle. Research indicates that male students are more likely to be victims of school violence than their female counterparts. Therefore male students are more violent that female students (National Center for Education Statistics, 2003). The government should acknowledge that school violence has become a major social problem in the contemporary times and therefore direct more resources towards control of school violence. Emerging Consensus about ways to solve the Issue Physiatrists, counselors and criminologists have agreed that the problem of school violence can be solved if a policy which regulates programs in the mass media is passed. The policy should also regulate what tapes; video compact disks (VCDs) are released to the market. This will ensure that young adults are not exposed to violent scenarios or movies that may trigger them to do the same. The problem cannot be solved by one party and therefore it has been agreed that collaboration between educators, parents, students and social service organizations and other stakeholders can bring lasting solution if the stakeholders analyze the problems facing the student community, their causes and effect of school violence and then eventually generate lasting solutions to the root problems. It has been proposed that students should be involved in community development projects like cleans-ups, destitute children visitation, planting of trees among other projects. This will enhance teamwork skills and promote communication skills. This will help reduce conflict among students and consequently reduce school violence (Walker, 1995). Proposed Solutions/Recommendation Management of school violence causes will help to promote discipline and consequently high performance in academics. Several solutions have been proposed to reduce school violence cases in the American schools. The major solution involves dialogue between parents, teachers, students, social service organizations and other stakeholders on the problems facing students, their causes and effects of school violence. The stakeholders can then communally focus on finding solutions (Edwin, 2004). School should intensify security through employment of personnel that have metal detectors to ensure that no student enters the school compound with any metallic weapon like a gun which have become common weapons in the recent years. The government should install surveillance cameras within the school compound to keep track of the behavior of students. This can help reduce the incidences if school violence for fear of being caught through images taken by the cameras. This therefore enhances conformity to rules and regulations governing students. The government should finance schools to collaborate with bomb-sniffing dogs to avoid the recent trends where the Islamic students enter with bomb in their bodies and while in company of other students explode themselves (Walker, 1995). Building or enhancing student-staff relationship help reduce incidences of school violence like theft, aggravated assault and simple assault. Teachers should be encouraged to respect students in their dialogue and behavior and this will help reduce school violence which erupts as a result of inferiority complex by some students. Schools should have a referral system for neglected and abused kids. The neglected and abused kids usually experience inferiority complex and therefore develop an urge to kill or harm the people that abuse them. When separated the threat is eliminated and consequently harmony is restored (Walker, 1995). Educators and policy makers (Edwin, 2004)should involve students in future planning to avoid conflicts that arise from new laws and policies which students perceive to be undermining or threatening and therefore riot. Most riots can be avoided through dialogue to ascertain whether the proposed policies or laws are ideal and just. Educators should emphasize on academic excellence and this will encourage students to focus their energies towards academics. Educators should support students to excel through guidance and counseling in areas of deficiency and support through tuition so as to keep the students busy and focused on academics. The community should involve students in community development projects, for example, visitation of the elderly, hospital clean-up, city clean-up activities and mountain climbing to instill the participation motivation. Such activities enhance teamwork skills and this help reduce conflict that yield school violence (Walker, 1995). Summary School violence (Edwin, 2004) is a social problem which has become common in most schools worldwide. School violence has continued to increase in the last 15 years as indicated by the high school deaths in the last 15 years. School violence can only decrease if the educators, parents and students agree to do their part effectively. School violence has been contributed by various factors, for example, childhood experiences, media, neglect of kids by parents, bullying by other students and exposure to violence in the community among other factors. Surveys indicate that male students are more prone to violence than their female counterparts. Incidences of school violence (Edwin, 2004) are more in public schools than in private schools. This is said to be contributed by the high number of students in public schools who pose a challenge in discipline management. The problem of school violence has attracted many debates in most states. Leaders especially in public schools are appealing to parents, students and social service organizations to come together to analyze the problems facing the students, their causes and effects of school violence so as to communally find lasting solutions. . References Centers for Disease Control and Prevention. 2003). Source of Firearms used by Students in school-Associated Violent Deaths. United States, 1992-1999. Morbidity and Mortality Weekly Report. Edwin, G. R. (2004). Handbook of School Violence. Education New York: Routledge. U. S. Department of Education and U. S. Department of Justice, (2003). Indicators of School Crime and Safety: 2003. Dewey, G. C. (2006). School Violence: Fears versus Facts. Psychology. California: California University Press. Henry, S. (2000). What is School Violence? An Integrated Definition. The Annals of the American Academy of Political and Social Problems, 3(2): 11-132. National Center for Education Statistics, (2003). National Data of School Violence in The United States in 1992-2001. The National Center on Addiction and Substance Abuse at Columbia University (2003). The Formative Years: Pathways to Substance Abuse. Walker, H. M. (1995). Antisocial Behavior in School: Strategies and Best Practices. New York: Cole Publishing Company.

Teen Pregnancy in The Media Essay Example for Free

Teen Pregnancy in The Media Essay Understanding the theories of persuasion, motivation, and influence will put you in life’s driver’s seat. Why? Because everything you want, or will want, in life comes from these three simple concepts. The power of persuasion is of extraordinary and critical importance in today’s world. Nearly every human encounter includes an attempt to gain influence or to persuade others to our way of thinking. Regardless of age, profession, religion, or philosophical beliefs, people are always trying to persuade each other. One’s ability to persuade meant great social prestige in the ancient Greek world. It was Aristotle who first introduced persuasion as a skill that could be learned. The first book ever written on persuasion was his The Art of Rhetoric. Aristotle taught that rhetoric was an art form that could be approached systematically by a formula for all persuasive attempts. Aristotle’s most famous contribution to persuasion was his three means of persuasion: ethos, pathos, and logos. He argued that the most effective persuasive attempts contain all three concepts. I apply these three concepts daily, whether I am communicating with someone or if I am watching TV or listening to the radio. The media is notorious for using ethos, pathos, and logos when trying to persuade viewers to either buy something or to simply watch a new show. One show in particular that I was persuaded to watch is MTV’s 16 and Pregnant. In this project I will talk about how shows like 16 and Pregnant and Teen Mom apply Aristotle’s concepts of ethos, pathos, and logos in an attempt to decrease teen pregnancy in America. I remember when I was in high school and Jamie Lynn Spears’ pregnancy was a lead story in the news. Her pregnancy was such a big deal because she was only 16 at the time and on top of that her sister was a pop star. I remember hearing so many negative comments about her, which I found dramatic because where I come from I saw pregnant teens often. In fact, I’m the product of a teenage pregnancy. Ever since Jamie Lynn Spears’ pregnancy went public I have always been interested in the teen pregnancy debate on whether or not teen pregnancy should be made public. With that being said, MTV’s shows 16 and Pregnant and Teen Mom have been called one of the best public service campaigns to prevent teen pregnancy. I decided to write about the influence of 16 and Pregnant and Teen Mom on societal views and trends, particularly because there’s an important ongoing public debate over whether or not these shows are glamorizing young motherhood. The cast members, as well as many high school girls in America, reject the idea that any peer would or should be envious of a teen mom’s daily struggles, but there are those parents and teachers who worry that the girls’ presence in tabloids will encourage copycatting. MTV uses the art of persuasion to reach out to their audience. The show tries to emphasize that there is nothing glamorous about missing the prom to stay home with a newborn baby or sacrificing a high school education to raise a child. Research by the National Campaign found that among teens that watch 16 and Pregnant, 82 percent believe that show helps teens better understand the challenges of teen pregnancy and parenthood and how to avoid it. Although the National Campaign seems to be a reliable source, I still question whether or not this show is effectively persuading our nation. The main research questions for this project are â€Å"How do shows like Teen Mom and 16 and Pregnant use ethos, pathos, and logos to persuade viewers not to get pregnant as teens? † I also want to research if these strategies effective at persuading teens and young adults, or do these shows glamorize teen pregnancy. I will analyze the show from a rhetorical perspective. I want to know if MTV producers are in fact glamorizing teen pregnancy or are they using their credibility to create awareness. MTV has a long history taking sexual health issues head-on through campaigns such as documentary shows. These shows are well put together, logical, and they use authentic footage to engage pathos in campaigns. I plan on answering the questions I have about this national topic by conducting a survey and researching other national surveys that have been done. I would like to conduct a survey amongst my peers on campus to collect data to see if I have similar results as the National Campaign. I also plan on looking at scholarly journals written by high school teachers and college professors. High school teachers are in contact with these students every day and I feel that their opinions and critiques are credible. I know that conducting my own survey and reviewing scholarly journals will help guide me to answering the research questions that I have. Many of us wonder why we behave in the way we do, or why we say the things we do. Although many of us attribute our beliefs and ideas to parental or peer influence, the most significant models and mentors for most adolescents as they develop may, in fact, be characters or â€Å"celebreality† depicted through popular television programs. Throughout our youth, we are frequently exposed to television. We watch it for entertainment, education, or simply to alleviate boredom. As we watch, we internalize many of its messages and images and learn from what we see. Many young children dress up and act out roles of their favorite Disney characters. However, there are young children now who want to play the roles of teen moms from MTV’s Teen Mom show. I recently witnessed my two younger cousins, ages nine and eleven, â€Å"act† like they were teen moms by putting to small pillows in their shirts and proceeded to call each other â€Å"Maci† and â€Å"Farrah†. When They initially put the pillows in their shirts, I had no idea what they were doing, however, when they called each other those names, I immediately knew what they were doing. It was so unexpected and caught me off guard, and made me question: first, why the heck are these babies watching Teen Mom; And secondly, is this how young girls are â€Å"playing† now? Although some may see this as simple playtime, how much of the messages from television remain with children as they grow? Television shows such as Teen Mom or 16 and Pregnant depict the â€Å"real† life, sometimes concluding with the all too familiar, â€Å"happily ever after. † Do these shows set unattainable real life expectations for the viewer? Such television shows highlight moments of interest, leaving out intricate details regarding emotions and relationships between the teen moms and their situation. MTV edits theses shows to depict what they want the audience to see and believe what is going on, but everything is not shown. The episodes are 30 minutes long, and life is much more complex and elaborate. Media representations of life are confusing for many viewers. When we observe television stars behaving in a particular way, we assume that comparable actions in our lives will result in similar consequences. The Neilson Company reported that television consumption in the United States in the 2008- 2009 season reached an all time high. Americans spend approximately four hours and 49 minutes watching television every day (Media Literacy Clearinghouse, 2009). Spending this much time watching television is bound to affect us. When television programs begin to impact our behaviors more deeply does the influence of our parents or teachers, it is time to take a deeper look into this phenomenon and discover its real implications. Throughout this study, I will discuss the use of persuasion in television shows such as Teen Mom and 16 and Pregnant. This study will focus on the effects of ethos, pathos, and logos used by MTV, and how their persuasion is affecting today’s youth by airing these programs. In this section I am going to outline the theories guiding my questions. y. Cultivation Analysis Theory examines the relationship between extent of television viewing and conception of reality. The theory is based on work developed by George Gerbner which began in the 1970’s. The more people see false representations of life and relationships on television, the more they accept it as reality. Viewers will consequently believe in a greater incidence of the overrepresented portrayals, which will subsequently affect their behavior (Eisend, 2006). Cultivation theory explains the importance of viewers’ thoughtful examination of media messages before accepting them as truth. The influence of media representations of reality is powerful in the development of self image and world understanding. In relation to the growing number of teen pregnancy, recent studies show that the amount of sexual content on television has been considerable and increasing over the years (Eyal Finnerty, 2009). Television and media messages contribute significantly to individuals’ thoughts and behaviors. It comes as no surprise to see that, â€Å"research has established that exposure to sexual content in entertainment programming can contribute to a young person’s sexual socialization and that adolescents turn to magazines and television as central sources of information about sex and contraception† (Eyal Finnerty, 2009). These studies have discovered that sexual behavior depicted on television typically occurs between unmarried individuals and that many of the risks related to this behavior ( like unplanned pregnancy) are rarely seen as consequences (Eyal Finnerty, 2009). As stated previously, when these actions are rewarded or justified (on shows such as Teen Mom and 16 and Pregnant), individuals, specifically teens, will be more likely to engage in the behavior themselves. One of the most generally accepted theories used to explain the influence of media on individuals is social cognitive theory. Although there is some debate regarding the full influence of the media on viewers, it is known that humans learn from observation. According to Albert Bandura, things people experience in their environments affect their behavior and values. When they see behavior that is rewarded or praised, they are likely to exhibit the behavior themselves through operant learning (Bandura, 1994). It has been questioned repeatedly if MTV’s shows Teen Mom and 16 and Pregnant glamorize teen pregnancy or are they using persuasive techniques to influence young viewers to make safe sex decisions. However, Bandura suggests that if we witness a particular behavior on television, we are likely to imitate that behavior in our own lives. When teens watch these television shows, they are influenced to either imitate the behavior or learn from it. MTV’s purpose of 16 and Pregnant and Teen Mom is to persuade young viewers that teen pregnancy is not a fairytale life, but yet MTV shows an edited version of these pregnant teens’ daily life. After the teens’ stories are told on 16 and Pregnant, their lives are followed on Teen Mom where they usually have a house, a car, and what teens want the most: freedom. When teenagers watch this show, yes they are seeing some hardships of being a parent at a young age, but they are also seeing that the teens on the show are â€Å"grown† and are making it with a child more than struggling. However, the younger viewers are oblivious to fact that these teens are getting paid from being on the show, and that is the money that they are using to live more comfortable on Teen Mom than they were on 16 and Pregnant. Older teens realize that these girls on television are being paid, so they can perceive getting pregnant as a teen and being on one of these shows as an outlet to get money, disregarding the fact that they will have a child. Television has the ability to model the beliefs of individuals due to the situations and characters’ believed similarities to real life. Through the imitation of and identification with people on television, viewers exhibit behavior similar to the characters in their own lives. While watching television programs, viewers learn about through social cognition. Another theory that aims to describe the effect of media on young viewers is the early window theory. This theory examines how children are allowed to see the world and its various aspects before they possess the skill set to adequately understand and act in it. According to this theory, children learn at early ages about gender roles and their function within society. Not only are children exposed to various portrayals of reality, but these portrayals can â€Å"encourage expectations of others Portrayals in television and other media of highly attractive persons may encourage dissatisfaction [with] or lowered evaluations of attractiveness of those of the pertinent sex in real life† (Comstock, 1991). These portrayals can influence the behavior of children regarding personal body image and the image of others’ bodies as well. The early window seeks to explain the implications of television on the lives of youthful viewers. In relation to the narrative I shared about my two younger cousins, children may not normally be exposed to certain experiences or emotions, but because of television during the time of growth, children are shown elements of reality meant for their later years. My cousins know what it means to be pregnant, a baby is inside of a woman’s stomach. How the baby got there is still questionable to them. However, they are blind to the controversy about to teen pregnancy. In their eyes, an seventeen or eighteen year old is grown, which why they did not understand why I told them to stop mocking Maci and Farrah. During their youth, they are exposed to television shows like Teen Mom and 16 and pregnant, and they are exposed to adult situations and emotions that no child or teenager should have to witness, or better yet understand, at an early age. Little research has been conducted to better understand how media might also have positive effects by, for example, decreasing risky sexual behavior and promoting healthier decisions among teens. Given that teens’ use of media has increased over the past decade, and that the amount of sexual content in the media has also increased, it is reasonable to explore whether Teen Mom and 16 and Pregnant might be used to help prevent teen pregnancy. My research question asks, how do shows like Teen Mom and 16 and Pregnant use ethos, pathos and logos to persuade viewers not to get pregnant as teens? I conducted a survey to evaluate if these strategies, like MTV shows, are effective at persuading teens and young adults. My survey was composed of 10 questions. Five out of the 10 questions were context questions, and five questions were demographic questions. A total of 10 teens participated and completed the survey. The average age of the participants was 15. 6 years, ranging from 13 to 18 years old. All of the participants were female (100%). Five of the participants were Caucasian and five were African American. Six out of the ten of the participants reported having had sex. Two of the participants are teenage mothers. My survey was designed to learn more about how watching and discussing episodes of Teen Mom and 16 and Pregnant influences teens’ perceptions of getting pregnant and becoming a parent at a young age. My results also shed light on teens’ perceptions of the shows Teen Mom and 16 and Pregnant, in particular, and their views about how media might influence teens’ decisions about sex more generally. Television and other media alone do not cause, and cannot prevent, teen pregnancy. However, entertainment media can reach millions of teens with important messages about teen pregnancy. It is necessary to consider that there is a distinction between this survey I conducted, which attempts to understand teens’ views about teen pregnancy as a result of watching MTV’s Teen Mom and 16 and Pregnant—versus an impact evaluation of a prevention program whose sole purpose is to reduce teen pregnancy. While evidence based teen pregnancy prevention programs are guided by specific theories and have the explicit goal of changing behavior to reduce risk of teen pregnancy, television shows such as Teen Mom and 16 and Pregnant are created for entertainment with the goal of attracting viewers and keeping them engaged. The teens in this study enjoyed watching and discussing the 16 and Pregnant episodes and thought that the show was realistic. Neither the boys nor girls who watched the episodes wanted to imitate the teens in the episodes they watched. In fact, nearly all of my teen participants (93%) that watched the show agreed (53% strongly agreed) with the statement: â€Å"I learned that teen parenthood is harder than I imagined from these episodes. † When asked if these shows glamorized teen pregnancy five (50%) of my participants strongly disagreed, two (20%) disagreed, and three (30%) selected neutral. As I stated before, some of society believe that these shows â€Å"glamorizes† teen pregnancy, the findings from this survey show my teen participants do not share that view. In addition, teens that saw and discussed the episodes reported that they enjoyed watching and talking about the show and that they learned something new from doing so. The more they liked it, the more likely they were to have negative views about teen pregnancy. Teens were eager to recommend the show to others; 90% of participants agreed (60% of those strongly agreed) with the statement: â€Å"I think all teenagers should watch a show like this. † Many (80%) said they would recommend that friends participate in the discussion, too. The results of this survey support the idea that teens are interested in watching and discussing reality television shows about teen pregnancy, and that messages about the realities of teen pregnancy and parenting in these shows can influence teens’ attitudes about the challenges of teen parenthood. Given the popularity of these shows, their messages clearly reach a large number of teens. Although I collected plenty of useful data, there were some limitations to my survey. First, I only surveyed female participants. It would have been interesting to have male opinions with this survey to analyze if they shared the same attitudes about these shows as my female participants did. MTV is a universal television station that has a female and male demographic. Unlike Lifetime and Oxygen, channels that have a majority of female viewers, MTV targets male and female viewers and it could be likely that many males watch this show because they enjoy watching MTV in general. Second, my survey only consisted of teenage participants. Initially, I wanted to survey teenagers and high school teachers. High school teachers are in contact with teens everyday and would have a credible opinion. However, I decided to just ask teenagers because I wanted to keep the focus on them. This topic as a whole is about teenage pregnancy so I wanted to know how teenagers felt about these shows and if they thought these shows glamorized teen pregnancy. The last limitation is that my survey questions did not really discuss what teens learned and could have been better. My survey asked questions that produced answers about their attitudes toward the show, but it did not ask questions in regards to what they specifically learned. I asked my participants if they felt the show glamorized teen pregnancy, however my survey was constructed on a Likert-Type Scale so they only had the option of on selecting one of the following: â€Å"Strongly Agree, Agree, Neutral, Disagree, or Strongly Disagree. † It would have been a good idea to leave that question open and ask them to explain their answer that way I could have collected data about what they learned specifically and why exactly they thought that these shows did or did not glamorize teen pregnancy. Initially I hypothesized that these shows glamorize teen pregnancy, and the shows would increase teens’ desire to want to become pregnant because these shows edit out some of the struggles. However, I seem to be wrong based on my survey results. Nearly all of my participants either have watched these shows, and a little over half of them said they learned that parenthood is harder than they thought after watching these shows. When presented with the statement that the shows glamorize teen pregnancy seven out of my ten participants disagreed, and the other three participants selected the neutral choice. That concludes that more than half of my participants have opposing views from what I hypothesized. Although three of the participants chose â€Å"neutral† as their answer they did not fully agree or disagree with the statement. Therefore, a majority of the participants proved my hypothesis to be wrong. My hypothesis may have been incorrect, but my research question about how do shows like Teen Mom and 16 and Pregnant uses ethos, pathos, and logos to persuade viewers still remains. Teen Mom and 16 and Pregnant, allow teens to see what the responsibility of having a baby is. It shows the lives of four girls who got pregnant at age 16. Many of them struggle not only with their pregnancy, but also with the acceptance of the parents or even their own boyfriend. The style and the language they use are very realistic making the series even more interesting to teens these days. The show gets its point of view out by making the viewers, mostly teen girls, feel what the girls in the show are feeling, using ethos, pathos and logos very well. Ethos means to convince an audience of the speaker’s credibility or character. Teen Mom and 16 and Pregnant use ethos to show the young audience that the show is a credible source and is worth listening too. For example, the show often takes place in a hospital, obviously, and doctors are shown giving the teen parents medical advice and expertise. This establishes credibility to the viewers because doctors are associated with being smart which would make them credible, theoretically. I noticed from watching the shows that they will introduce the doctors and what hospital the doctors practice at. I feel like they present where the doctor practices to make the situations even more credible. Ethos can be developed by choosing language that is appropriate for the audience and topic (also means choosing proper level of vocabulary), sounding fair or unbiased, introducing expertise, and by using correct grammar. The doctors use simple language for the teen moms and viewers to understand, they also tell it â€Å"straight like it is† to the young parents about any risks or complications (sounding unbiased and fair), and they also speak articulately and use correct grammar, all to contribute credibility and appeal to the audience. Once these shows prove their credibility, the audience is more likely to develop an emotional connection to the girls on these shows. Pathos means to persuade an audience by appealing to their emotions. Teen Mom and 16 and Pregnant use pathos to evoke sympathy from an audience; to get them to feel what the girls on the show feel. A common use of pathos would be to draw pity from an audience. For example, one of the teens on this show, Farrah, lost her boyfriend in a crash while she was pregnant. Farrah is portrayed on the show as the girl struggling emotionally because her baby’s father is not there to support her during her pregnancy like the other girls on the show. Farrah has her family that supports her, but she doesn’t have her boyfriend. The death of her boyfriend is the emotional appeal to connect with the young audience. Teens value their boyfriends, sometimes a little more than their families at that age. So when young viewers see that she doesn’t have her boyfriend around anymore, they feel sad and pity her because dealing with a boyfriend’s death as a teen is just as eye opening as dealing with pregnancy at an early age. The show edits Farrah’s episodes to really emphasize the fact that she has to raise her daughter on her own, but receives a lot of support from her family. Another use of pathos would be to inspire anger from an audience, perhaps in order to prompt action. Pathos is the Greek word for both â€Å"suffering† and â€Å"experience. † I saw a lot of this use of pathos in Caitlyn’s episodes. Caitlyn and her boyfriend decided to place their daughter up for adoption. They are the only couple on the show to do this. The show edits Caitlyn’s episodes to depict her experience of carrying her baby, selecting an adopted family, giving birth, and the emotional suffering she has after she gives her baby away. Although Caitlyn’s experience and suffering would appeal to the audience’s emotions to feel pity, I can also see how it could inspire anger from the audience. There is no doubt in my mind that there are some teens that have negative views about adoption because many teens don’t understand adoption and only think of it as â€Å"giving your baby away to strangers. † However, there may be some teens that have morals and religious beliefs that make them negatively view adoption. Needless to say, Caitlyn giving her baby away could spark questions amongst some young viewers like, â€Å"Why would she give her baby away I would never do that! † Many of times, an ill-educated mind would ask questions like this because they are unaware of statistics and logical reasoning to certain actions. Logos means to convince an audience by use of logic or reason. To use logos would be to cite facts and statistics, historical and literal analogies, and citing certain authorities on a subject. In Caitlyn’s case, MTV allows her to share on the show why she decided to give her daughter up for adoption. She explains that she is living in an unstable household that she does not want her daughter to grow up in. After each episode, MTV also provides statistics on teenage pregnancy in the United States, and how many teens follow through with the adoption option. I also observed while watching 16 and Pregnant that MTV makes a conscious effort to define terminology on the screen for the viewers. Some of the teens on the show will have an epidural during their delivery or their child would be born with jaundice, and terms like â€Å"epidural† and â€Å"jaundice† would appear on the screen with short, easy to read definitions. I’m not sure if MTV does this to scare teens or if they do this to inform them so they will have a better understanding of what is going on. Logos can be developed by using advanced and abstract language, citing facts (which is very important in my opinion), and by constructing logical arguments. According to Aristotle, rhetoric is the ability, in each particular case, to see the available means of persuasion. He described three types of rhetorical appeal: ethos, pathos, and logos. In order for shows like 16 and Pregnant and Teen Mom to be effective strategies to decrease teen pregnancy, MTV producers needed to understand these three terms. Judging by my survey results, these producers are knowledgeable and understand that the proper use of ethos, pathos and logos is necessary. The media is notorious for using ethos, pathos, and logos when trying to persuade viewers to either buy something or to simply watch a new show. I was persuaded to watch MTV’s Teen Mom and 16 and Pregnant when I was in high school. I simply wanted to know more about the persuasive appeals these shows used and if these shows glamorized teen pregnancy. This project allowed me to research Aristotle’s concept of ethos, pathos, and logos, and how these shows are effective strategies to persuade young viewers not to become pregnant. My main research questions for this research project was â€Å"How do shows like Teen Mom and 16 and Pregnant use ethos, pathos, and logos to persuade viewers not to get pregnant? † And â€Å"Are these shows effective strategies for persuading teens and young adults? † I hypothesized that these shows glamorize teen pregnancy, and I wanted to further my research to learn more about this controversial topic. I initially planned on constructing a survey and reviewing scholarly journals regarding theories to help guide me to answering my research questions. I began my research by identifying theories that would help me approach this topic. I created my theoretical framework using three theories that I selected based on their ideologies of the media’s influence on behaviors. Media representations of life are confusing for many viewers. When we observe television stars behaving in a particular way, we assume that comparable actions in our lives will result in similar consequences. With that being said, my theoretical framework focused on Cultivation Analysis, Social Cognitive Theory, and the Early Window Theory. Cultivation Analysis Theory examines the relationship between extent of television viewing and conception of reality. In relation to the growing number of teen pregnancies, recent studies show that the amount of sexual content on television has been considerable and increasing over the years (Eyal Finnerty, 2009). Television and media messages contribute significantly to individuals’ thoughts and behaviors. I was able to apply this theory to my research because I wanted to make a logical argument that when teens see these young moms on TV living a fancy life (owning a house, owning a car, partying, dating, etc. ) that they would believe that they could have a similar life. This theory allowed me to show that teens could easily misinterpret the scripted situations happening on Teen Mom and 16 and Pregnant as a reality. I also learned that one of the most generally accepted theories used to explain the influence of media on individuals is Social Cognitive Theory. According to Albert Bandura, when people see behavior that is rewarded or praised, they are likely to exhibit the behavior themselves through operant learning. I selected this theory to prove my hypothesis that if young viewers of these shows watched these girls develop a fancy life from 16 and Pregnant to Teen Mom then they would view this as the girls being praised and would be more likely to imitate behaviors to receive these rewards, which in this case would require pregnancy in order to receive the same â€Å"praise†. Although there is some debate regarding the full influence of the media on viewers, it is known that humans learn from observation. This theory also provided insight to the possible results of my research question that asks how these shows use ethos, pathos, and logos to persuade young viewers. As stated, humans learn through observation, so being able to witness these teen parents’ experience on the show and to hear their stories has more potential to persuade them to get pregnant or not depending on how they observe the show. The last theory that I used for my theoretical framework was the Early Window Theory. According to this theory, children are allowed to see the world and its various aspects before they possess the skill set to adequately understand and act in it. I decided to use this theory as part of my framework because I wanted to analyze the effects these shows have in regards to exposing teenagers to â€Å"adult situations† (like pregnancy). Teenagers get to a certain point where they are curious about sex and have questions. That is normal. However, these shows are documentaries about young parents who are experiencing having a child out of wedlock and in some cases have complications with their birth or have to worry about going to court for child support. These documentaries are shown on MTV, which is a television channel geared towards a young audience. This young audience is exposed to these documentaries about pregnancy, and if they watch them then they are given the opportunity to learn about an aspect of life that they should not be exposed to or worried about until they are older and are able to adequately understand it all. After developing my theoretical framework, I began to apply my methods for collecting data. I constructed a survey of ten questions. I surveyed ten female participants ranging in age from 13-18. I experienced limitations with my survey, like I only surveyed females and I only surveyed teenagers. The biggest limitation of my survey was that my questions were not the best. Based on my questions and the responses that I received I was unable to find out what exactly teens learned from the show. However, I did find out my teen participants’ attitudes towards these shows and how these shows influence their attitudes. My survey results also proved my hypothesis that these shows glamorize teen pregnancy to be wrong. More than half of my survey participants disagreed that these shows glamorize teen pregnancy. I was initially surprised by the data I received from the survey. However, after giving my results deep thought, I have concluded that my results make sense. Why would teens feel that the show glamorizes teen pregnancy? When I consider the ideas from my theoretical framework about how the media influences people’s conception of reality and that people learn through observation, I can safely assume that teens might believe that these girls on the show are living a normal life. Again, one of the downfalls of my survey is that I only surveyed teenage girls and my results reflected that. MTV shows the teen moms struggling sometimes, and other times they are living what seems to be a normal life. However, the struggle doesn’t out shine the normality. Although I did not receive the results I wanted, the results I did analyze made sense considering my theoretical research and the age and gender demographics of my survey participants. In conclusion, this project as a whole helped me understand the art of persuasion in relation to the media. Shows like Teen Mom and 16 and Pregnant effectively use ethos, paths and logos to influence teens’ attitudes about pregnancy. My survey results reflect this effectiveness, and my teenage participants said they learned that parenthood is harder than they thought from watching these shows; and I agree. The girls on these shows are not ready to have babies. They go through a lot of pain and also they get to miss out on high school memories. Being a mom is not an easy job for anyone. Many teens have at risk pregnancies because the body is not developed to carry a baby. MTV produces persuasive appeals on Teen Mom and 16 and Pregnant to address certain facts and discuss how important it is for teens to understand the consequences of teen pregnancy. References Cosmstock, G. (1991). Television and the American Child. San Diego Academic. Bandura, A. (1994). Social Cognitive Theory of Mass Communication. Hillside: In J. Bryant and D. Zillman Gerbner, G. (1998). Cultivation Analysis: An Overview. Mass Communication Society, 175-194. Eisend, M. (2006). The influence of TV viewing on consumers’ body images and related consumption behavior. Springer Science + Business Media, 101-116 Eyal, K. , Finnerty, K. (2009). The Portrayal of Sexual Intercourse on Television: How, Who, and With What Consequence? Mass Communication and Society, 143-170. Media Literacy Clearinghouse. (2009). Media Use Statistics. Retrieved November 2009, from the Media Literacy Clearinghouse: http://www. frankwbaker. com/mediause. htm

An Overview of Indias Banking Sector

An Overview of Indias Banking Sector INTRODUCTION A bank is a financial institution whose primary activity is to act as a payment agent for customers, to borrow and to lend money. ‘BANK the name is derived from the italian word ‘banco, which means ‘desk/bench. The history of banks pave their way back to 3rd millenium B.C. They were probably the religious places where they started off. Then they developed gradually over years and currently it has taken a very complex shape. There are certain financial institutions whicu provide banking services but do not have the banking license,they are called NBFCs. There are various types of banks on the basis of activities and on the basis of ownership and above all is the central bank which is the last resort for all commercial banks in the country. Banks ought to get license for their working as a bank and there are regulations regarding the capital requirements and their reserves. The current scenario of banking industry is bad due to the net interest margin getting thinner because of incresed inflation and resultant hike in repo rates. MEANING AND DEFINITION The definition of a bank varies from country to country. Under English law, a bank is defined as a person who carries on the business of banking, which is specified as conducting current accounts for his customers paying cheques drawn on him, and collecting cheques for his customers. A Bank can be defined as : A bank is an institution that acts as an agent that provides financial services and that holds a banking license granted by bank regulatory authorities for carrying out the most fundamental banking services. There are also financial institutions that provide certain banking services without meeting the legal definition of a bank, a so called non-banking financial company. Banks are a subset of the financial services industry.Banks are a sub set of the financial services industry. Bank can be more clearly understood by the activities it perform: Accepting deposits and granting loans to customers. It also acts as credit intermediary- borrow and lend back-to-back on their own account as middle men. It also act as a collection agent, participate in inter-bank clearing and settlement systems. Issuer of money, in the form of banknotes and current accounts subject to cheque or payment at the customers order. In other words can be said that, Banker includes a body of persons, whether incorporated or not, who carry on the business of banking. HISTORY ‘BANK, the name is derived from the italian word ‘banco , which means ‘desk/bench , used during the Renaissance by Florentines bankers , who used to make their transactions above a desk covered by a green tablecloth. In fact, the word traces its origins back to the Ancient Roman Empire, where moneylenders would set up their stalls in the middle of enclosed courtyards called ‘macella on a long bench called a ‘bancu , from which the words banco and bank are derived. WORLD HISTORY The first banks were probably the religious temples of the ancient world, and were probably established sometime during the 3rd millennium B.C. Banks probably predated the invention of money. Deposits initially consisted of grain and later other goods including cattle, agricultural implements, and eventually precious metals such as gold.There are some extant records of loans from the 18th century B.C. in Babylon that were made by temple priests monks to merchants. Ancient Greece holds further evidence of banking. There is evidence too of credit, whereby in return for a payment from a client, a moneylender in one Greek port would write a credit note for the client who could cash the note in another city. In the late third century B.C., the barren Aegean island of Delos, known for its magnificent harbor and famous temple of Apollo, became a prominent banking center. Ancient Rome perfected the administrative aspect of banking and saw greater regulation of financial institutions and financial practices. Charging interest on loans and paying interest on deposits became more highly developed and competitive. The first modern bank was founded in Italy in Genoa in 1406, its name was Banco di San Giorgio (Bank of St. George). HISTORY OF BANKING IN INDIA: AN OVERVIEW Banking in India originated in the first decade of 18th century with The General Bank of India coming into existence in 1786. This was followed by Bank of Hindustan. Both these banks are now defunct. The oldest bank in existence in India is the State Bank of India being established as The Bank of Bengal in Calcutta in June 1806. The first fully Indian owned bank was the Allahabad Bank, which was established in 1865. By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai both of which were founded under private ownership. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After Indias independence in 1947, the Reserve Bank was nationalized and given broader powers. Early history At the end of late-18th century, there were hardly any banks in India in the modern sense of the term. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century. At the beginning of the 20th century, Indian economy was passing through a relative period of stability. Around five decades have elapsed since the Indias First war of Independence, at that time there were very small banks operated by Indians, and most of them were owned and operated by particular communities. The banking in India was controlled and dominated by the presidency banks, namely, the Bank of Bombay, the Bank of Bengal, and the Bank of Madras which later on merged to form the Imperial Bank of India, and Imperial Bank of India, upon Indias independence, was renamed the State Bank of India. There was potential for many new banks as the economy was growing. many Indians came forward to set up banks, and many banks were set up at that ti me, a number of which have survived to the present such as Bank of India and Corporation Bank, Indian Bank, Bank of Baroda, and Canara Bank. During the Wars The period during the First World War (1914-1918) through the end of the Second World War (1939-1945), and two years thereafter until the independence of India were challenging for the Indian banking. The years of the First World War were turbulent, and it took toll of many banks which simply collapsed despite the Indian economy gaining indirect boost due to war-related economic activities. At least 94 banks in India failed during the years 1913 to 1918. Post-independence The partition of India in 1947 had adversely impacted the economies of Punjab and West Bengal, and banking activities had remained paralyzed for months. In 1948, the Reserve Bank of India, Indias central banking authority, was nationalized, and it became an institution owned by the Government of India. In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) to regulate, control, and inspect the banks in India. The Banking Regulation Act also provided that no new bank or branch of an existing bank may be opened without a licence from the RBI, and no two banks could have common directors. Nationalisation By the 1960s, the Indian banking industry has become an important tool to facilitate the development of the Indian economy. Indira Gandhi, the-then Prime Minister of India expressed the intention of the GOI in the annual conference to nationalised the 14 largest commercial banks with effect from the midnight of July 19, 1969. A second dose of nationalisation of 6 more commercial banks followed in 1980. The stated reason for the nationalisation was to give the government more control of credit delivery. With the second dose of nationalisation, the GOI controlled around 91% of the banking business of India. After this, until the 1990s, the nationalised banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy. Liberalisation In the early 1990s the then Narsimha Rao government embarked on a policy of liberalisation and gave licences to a small number of private banks. This move, along with the rapid growth in the economy of India, kickstarted the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks. The next stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%,at present it has gone up to 49% with some restrictions. Current Situation Currently, India has 88 scheduled commercial banks (SCBs) 28 public sector banks (that is with the Government of India holding a stake), 29 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively. INDUSTRY DYNAMICS The Indian Banking industry is one of the most robustly developed banking system in the world comprising 28 PSU banks, 33 private banks and 35 foreign banks. Together these are known as scheduled commercial banks (SCBs). Apart form the SCBs, there exists 133 regional rural banks (RRBs) and four local area banks, 1853 urban co-operative banks and 109924 rural co-operative banks. The government of India nationalised 14 banks in 1969 and another six in 1980. Privatisation in the sector was allowed in 1993. ICICI Bank and HDFC Bank were the first to thrive thereafter. PSU major Sate bank of India is one of the 100 largest banks in the world. Industry Size The size of Indias financial and banking sector is quite low when compared to other countries. Omnipresence Banking is the only sector influencing all components of the GDP in one way or the other. It is the only sector that can help you capitalise on all the three key themes of the India growth story — consumption, investment and foreign trade. It drives acts as a source of funds for the infrastructure sector (construction, basic materials like cement metals and engineering). It promotes consumption through its complex machanisms for the FMCG, auto, pharma and the real estate sector. Under penetrated From a Banking and Financial Services perspective, India is an under penetrated market. The total credit as a percentage of GDP is 53% as compared to 80% in case of Japan, 83% incase of Korea.China and Malaysia have the highest credit penetration of 108% and 109% respectively. Retail credit penetration is a measly 13% in India much lower than 61% in Malaysia and 41% 23% in case of Korea and Japan. Also, India is under-insured when it comes to life and non-life insurance (penetration of just 4% in case of life insurance and 1% in case of non life insurance). TYPES OF BANKS  § ON THE BASIS OF ACTIVITIES: Banks activities can be divided into: Retail banking, dealing directly with individuals and small businesses. Business banking, providing services to mid-market business. Corporate banking, directed at large business entities. Private banking, providing wealth management services to High Net Worth Individuals and families. Investment banking, relating to activities on the financial markets Most banks are profit-making, private enterprises. However, some are owned by government, or are non-profits. Central banks are normally government owned banks: charged with quasi-regulatory responsibilities, e.g. supervising commercial banks. They generally provide liquidity to the banking system and act as Lender of last resort in event of a crisis. ON THE BASIS OF OWNERSHIP: Banks as classified on ownership basis can be categorised into: Public banks,owned and managed by government. Private banks,owned and managed by private enterpreneurs. Foreign banks,owned and managed by foreign institutions. Commercial banks Commercial banks can have two meanings: Commercial bank is the term used for a normal bank to distinguish it from an investment bank. Commercial bank can also refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses, as opposed to normal individual members of the public (retail banking). Commercial bank is engaged in the following activities: processing of payments by way of telegraphic transfer, EFTPOS, internet banking or other means issuing bank drafts and bank cheques accepting money on term deposit lending money by way of overdraft, installment loan or otherwise providing documentary and standby letter of credit, guarantees, performance bonds, securities underwriting commitments and other forms of off balance sheet exposures safekeeping of documents and other items in safe deposit boxes currency exchange sale, distribution or brokerage, with or without advice, of insurance, unit trusts and similar financial products as a â€Å"financial supermarket† Types of loans granted by commercial banks Secured loan A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral (i.e., security) for the loan. Mortgage loan A mortgage loan is a very common type of debt instrument, used to purchase real estate. Under this arrangement, the money is used to purchase property. Commercial banks, however, are given security a lien on the title to the house until the mortgage is paid off in full. If the borrower defaults on the loan, the bank would have the legal right to repossess the house and sell it, to recover sums owing to it. Unsecured loan Unsecured loans are monetary loans that are not secured against the borrowers assets (i.e., no collateral is involved). These may be available from financial institutions under many different guises or marketing packages: credit card debt, personal loans, bank overdrafts credit facilities or lines of credit corporate bonds Retail banks Retail banking refers to banking in which banks undergo transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and checking accounts, mortgages, personal loans, debit cards, credit cards, and so forth. Investment banks Investment banks are financial intermediaries that perform a variety of services. This includes underwriting, acting as an intermediary between an issuer of securities and the investing public, facilitating mergers and other corporate reorganizations, and also acting as a broker for institutional clients. In other words can be said that, Investment banks help companies and governments raise money by issuing and selling securities in the capital markets (both equity and debt), as well as providing advice on transactions such as mergers and acquisitions Types of investment banks Investment banks underwrite (guarantee the sale of) stock and bond issues, trade for their own accounts, make markets, and advise corporations on capital markets activities such as mergers and acquisitions. Merchant banks were traditionally banks which engaged in trade financing. The modern definition, however, refers to banks which provide capital to firms in the form of shares rather than loans. Unlike venture capital firms, they tend not to invest in new companies. Private banking Private banking is a term for banking, investment and other financial services provided by banks to private individuals disposing of sizable assets. The term private refers to the customer service being rendered on a more personal basis than in mass-market retail banking, usually via dedicated bank advisers. Personalized financial and banking services that are traditionally offered to a banks rich,high net worth individuals (HNWIs). Public banks Banks, which are incorporated, owned and regulated by government. Private banks Private banks are banks that are not incorporated. A non-incorporated bank is owned by either an individual or a general partner(s) with limited partner(s). In any such case, the creditors can look to both the entirety of the banks assets as well as the entirety of the sole-proprietors/general-partners assets. Private banks and private banking can also refer to non-government owned banks in general, in contrast to government-owned (or nationalized) banks. NON-BANKING FINANCIAL CORPORATION Non-bank financial companies (NBFCs) are financial institutions that provide banking services without meeting the legal definition of a bank, i.e. one that does not hold a banking license. Operations are, regardless of this, still exercised under bank regulation. However this depends on the jurisdiction, as in some jurisdictions, such as New Zealand, any company can do the business of banking, and there are no banking licences issued. NBFCs are doing functions akin to that of banks, however there are a few differences: (i) A NBFC cannot accept demand deposits; (ii) it is not a part of the payment and settlement system and as such cannot issue cheques to its customers; and (iii) deposit insurance facility of DICGC is not available for NBFC depositors unlike in case of banks. It is mandatory that every NBFC should be registered with RBI to commence or carry on any business of non-banking financial institution as defined in clause (a) of Section 45 I of the RBI Act, 1934.However, to obviate dual regulation, certain category of NBFCs which are regulated by other regulators are exempted from the requirement of registration with RBI viz. Venture Capital Fund/Merchant Banking companies/Stock broking companies registered with SEBI, Insurance Company holding a valid Certificate of Registration issued by IRDA, or Housing Finance Companies regulated by National Housing Bank. All NBFCs are not entitled to accept public deposits. Only those NBFCs holding a valid Certificate of Registration with authorization to accept Public Deposits can accept/hold public deposits. The NBFCs accepting public deposits should have minimum stipulated Net Owned Fund and comply with the Directions issued by the Bank. There is ceiling on acceptance of Public Deposits. A NBFC maintaining required NOF/CRAR and complying with the prudential norms could accept public deposits as follows: Category of NBFC Ceiling on public deposits AFCs maintaining CRAR of 15% without credit rating. AFCs with CRAR of 12% and having minimum investment grade credit rating. 1.5 times of NOF or Rs.10crore whichever is less. 4 times of NOF LC/IC with CRAR of 15% and having minimum investment grade credit rating. 1.5 times of NOF AFC-Asset financing Company LC-Loan Company IC-Investment Company If a NBFC defaults in repayment of deposit, the depositor can approach Company Law Board or Consumer Forum or file a civil suit to recover the deposits Some other types of banks: An advising bank (also known as a notifying bank) advises a beneficiary (exporter) that a letter of credit (L/C) opened by an issuing bank for an applicant (importer) is available and informs the beneficiary about the terms and conditions of the L/C. The advising bank is not necessarily responsible for the payment of the credit which it advises the beneficiary of. Community development banks (CDBs) are banks designed to serve residents and spur economic development in low- to moderate-income (LMI) geographical areas. When CDBs provide retail banking services, they usually target customers from financially underserved demographics. a custodian bank, or simply custodian, refers to a financial institution responsible for safeguarding a firms or individuals financial assets. The role of a custodian in such a case would be the following: to hold in safekeeping assets such as equities and bonds, arrange settlement of any purchases and sales of such securities, collect information on and income from such assets, provide information on the underlying companies and provide regular reporting on all their activities to their clients A depository bank is a bank organized in the United States which provides all the stock transfer and agency services in connection with a depository receipt program. This function includes arranging for a custodian to accept deposits of ordinary shares, issuing the negotiable receipts which back up the shares, maintaining the register of holders to reflect all transfers and exchanges, and distributing dividends. Islamic banking refers to a system of banking or banking activity that is consistent with Islamic law (Sharia) principles and guided by Islamic economics. In particular, Islamic law prohibits the collection and payment of interest.In addition, Islamic law prohibits investing in businesses that are considered unlawful. A mutual savings bank is a financial institution chartered through a state or federal government to provide a safe place for individuals to save and to invest those savings in mortgages, loans, stocks, Bonds and other securities. An offshore bank is a bank located outside the country of residence of the depositor, typically in a low tax jurisdiction that provides financial and legal advantages. Banking Industry Strucure in India CENTRAL BANK A central bank, reserve bank, or monetary authority is the entity responsible for the monetary policy of a country. Its primary responsibility is to maintain the stability of the national currency and money supply, but more active duties include controlling subsidized-loan interest rates, and acting as a bailout lender of last resort to the banking sector during times of financial crisis. ). It may also have supervisory powers, to ensure that banks and other financial institutions do not behave recklessly or fraudulently. History The oldest central bank in the world is the Riksbank in Sweden, which was opened in 1668 with help from Dutch businessmen. This was followed in 1694 by the Bank of England, created by Scottish businessman William Paterson in the City of London at the request of the English government to help pay for a war. Activities and responsibilities Functions of a central bank implementation of monetary policy controls the nations entire money supply the Governments banker and the bankers bank (Lender of Last Resort) manages the countrys foreign exchange and gold reserves and the Governments stock register; regulation and supervision of the banking industry: setting the official interest rate used to manage both inflation and the countrys exchange rate and ensuring that this rate takes effect via a variety of policy mechanisms Monetary policy: Central banks implement a countrys chosen monetary policy. At the most basic level, this involves establishing what form of currency the country may have, whether a fiat currency, gold-backed currency, currency board or a currency union. Currency issuance: Many central banks are banks in the sense that they hold assets (foreign exchange, gold, and other financial assets) and liabilities. Central banks generally earn money by issuing currency notes and selling them to the public for interest-bearing assets, such as government bonds. Interest rate interventions: Typically a central bank controls certain types of short-term interest rates. These influence the stock- and bond markets as well as mortgage and other interest rates. Policy instruments The main monetary policy instruments available to central banks are: open market operation bank reserve requirement interest rate policy credit policy capital adequacy is important, it is defined and regulated by the Bank for International Settlements, and central banks in practice generally do not apply stricter rules. Open Market Operations: Through open market operations, a central bank influences the money supply in an economy directly. Each time it buys securities, exchanging money for the security, it raises the money supply. Conversely, selling of securities lowers the money supply. Buying of securities thus amounts to printing new money while lowering supply of the specific security. Reserve Requirement: Another significant power that central banks hold is the ability to establish reserve requirements for other banks. By requiring that a percentage of liabilities be held as cash or deposited with the central bank (or other agency), limits are set on the money supply. Interest Rate Policy: By far the most visible and obvious power of many modern central banks is to influence market interest rates. The mechanism to move the market towards a target rate is generally to lend money or borrow money in theoretically unlimited quantities, until the targeted market rate is sufficiently close to the target. Central banks may do so by lending money to and borrowing money from (taking deposits from) a limited number of qualified banks, or by purchasing and selling bonds. Capital requirements: All banks are required to hold a certain percentage of their assets as capital, a rate which may be established by the central bank or the banking supervisor. Capital requirements may be considered more effective than deposit/reserve requirements in preventing indefinite lending: when at the threshold, a bank cannot extend another loan without acquiring further capital on its balance sheet. Entry regulation Currently in most jurisdictions commercial banks are regulated by government entities and require a special bank licence to operate. Unlike most other regulated industries, the regulator is typically also a participant in the market, i.e. government owned bank (a central bank). The requirements for the issue of a bank licence vary between jurisdictions but typically incude: Minimum capital Minimum capital ratio Fit and Proper requirements for the banks controllers, owners, directors, and/or senior officers Approval of the banks business plan as being sufficiently prudent and plausible. Banking channels A branch, banking centre or financial centre is a retail location where a bank or financial institution offers a wide array of face-to-face service to its customers ATM. Mail. Telephone banking Online banking Bank crisis liquidity risk -the risk that many depositors will request withdrawals beyond available funds credit risk -the risk that those who owe money to the bank will not repay interest rate risk- the risk that the bank will become unprofitable if rising interest rates force it to pay relatively more on its deposits than it receives on its loans. Profitability A bank generates a profit from the differential between the level of interest it pays for deposits and other sources of funds, and the level of interest it charges in its lending activities. This difference is referred to as the spread between the cost of funds and the loan interest rate. Bank Regulations Bank regulations are a form of government regulation which subject banks to certain requirements, restrictions and guidelines. The objectives of bank regulation, and the emphasis are: Prudential to reduce the level of risk bank creditors are exposed to Systemic risk reduction to reduce the risk of disruption resulting from adverse trading conditions for banks causing multiple or major bank failures Avoid Misuse of Banks to reduce the risk of banks being used for criminal purposes, e.g. laundering the proceeds of crime To protect banking confidentiality Credit allocation to direct credit to favoured sectors . General Principles of Bank Regulation Banking regulations can vary widely across nations and jurisdictions. Thes are some of the general principles of bank regulation throughout the world Minimum Requirements Requirements are imposed on banks in order to promote the objectives of the regulator. The most important minimum requirement in banking regulation is minimum capital ratios. Supervisory Review Banks are required to be issued with a bank licence by the regulator in order to carry on business as a bank, and the regulator supervises licenced banks for compliance with the requirements and responds to breaches of the requirements through obtaining undertakings, giving directions, imposing penalties or revoking the banks licence. Market Discipline The regulator requires banks to publicly disclose financial and other information, and depositors and other creditors are able to use this information to assess the level of risk and to make investment decisions. As a result of this, the bank is subject to market discipline and the regulator can also use market-pricing information as an indicator of the banks financial health. Instruments and Requirements of Bank Regulation Capital requirement The capital requirement is a bank regulation, which sets a framework on how banks and depository institutions must handle their capital. The categorization of assets and capital is highly standardized so that it can be risk weighted. The capital ratio is the percentage of a banks capital to its risk-weighted assets. Reserve requirement The reserve requirement sets the minimum reserves each bank must hold to demand deposits and banknotes. The purpose of minimum reserve ratios is liquidity rather than safety. Corporate Governance Corporate governance requirements are intented to encourage the bank to be well managed and also to achieve certain objectives as to maintain it as a body corporate, maintaining minimum number of members and organisational structure etc. Financial Reporting, Disclosure and Prospectus Requirements Banks may be required to: Prepare annual financial statements according to a financial reporting standard, have them audited, and to register or publish them . Prepare more frequent financial disclosures. Have directors of the bank attest to the accuracy of such financial disclosures. Prepare and have registered prospectuses detailing the terms of securities it issues. Credit Rating Requirement Banks may be required to obtain An Overview of Indias Banking Sector An Overview of Indias Banking Sector INTRODUCTION A bank is a financial institution whose primary activity is to act as a payment agent for customers, to borrow and to lend money. ‘BANK the name is derived from the italian word ‘banco, which means ‘desk/bench. The history of banks pave their way back to 3rd millenium B.C. They were probably the religious places where they started off. Then they developed gradually over years and currently it has taken a very complex shape. There are certain financial institutions whicu provide banking services but do not have the banking license,they are called NBFCs. There are various types of banks on the basis of activities and on the basis of ownership and above all is the central bank which is the last resort for all commercial banks in the country. Banks ought to get license for their working as a bank and there are regulations regarding the capital requirements and their reserves. The current scenario of banking industry is bad due to the net interest margin getting thinner because of incresed inflation and resultant hike in repo rates. MEANING AND DEFINITION The definition of a bank varies from country to country. Under English law, a bank is defined as a person who carries on the business of banking, which is specified as conducting current accounts for his customers paying cheques drawn on him, and collecting cheques for his customers. A Bank can be defined as : A bank is an institution that acts as an agent that provides financial services and that holds a banking license granted by bank regulatory authorities for carrying out the most fundamental banking services. There are also financial institutions that provide certain banking services without meeting the legal definition of a bank, a so called non-banking financial company. Banks are a subset of the financial services industry.Banks are a sub set of the financial services industry. Bank can be more clearly understood by the activities it perform: Accepting deposits and granting loans to customers. It also acts as credit intermediary- borrow and lend back-to-back on their own account as middle men. It also act as a collection agent, participate in inter-bank clearing and settlement systems. Issuer of money, in the form of banknotes and current accounts subject to cheque or payment at the customers order. In other words can be said that, Banker includes a body of persons, whether incorporated or not, who carry on the business of banking. HISTORY ‘BANK, the name is derived from the italian word ‘banco , which means ‘desk/bench , used during the Renaissance by Florentines bankers , who used to make their transactions above a desk covered by a green tablecloth. In fact, the word traces its origins back to the Ancient Roman Empire, where moneylenders would set up their stalls in the middle of enclosed courtyards called ‘macella on a long bench called a ‘bancu , from which the words banco and bank are derived. WORLD HISTORY The first banks were probably the religious temples of the ancient world, and were probably established sometime during the 3rd millennium B.C. Banks probably predated the invention of money. Deposits initially consisted of grain and later other goods including cattle, agricultural implements, and eventually precious metals such as gold.There are some extant records of loans from the 18th century B.C. in Babylon that were made by temple priests monks to merchants. Ancient Greece holds further evidence of banking. There is evidence too of credit, whereby in return for a payment from a client, a moneylender in one Greek port would write a credit note for the client who could cash the note in another city. In the late third century B.C., the barren Aegean island of Delos, known for its magnificent harbor and famous temple of Apollo, became a prominent banking center. Ancient Rome perfected the administrative aspect of banking and saw greater regulation of financial institutions and financial practices. Charging interest on loans and paying interest on deposits became more highly developed and competitive. The first modern bank was founded in Italy in Genoa in 1406, its name was Banco di San Giorgio (Bank of St. George). HISTORY OF BANKING IN INDIA: AN OVERVIEW Banking in India originated in the first decade of 18th century with The General Bank of India coming into existence in 1786. This was followed by Bank of Hindustan. Both these banks are now defunct. The oldest bank in existence in India is the State Bank of India being established as The Bank of Bengal in Calcutta in June 1806. The first fully Indian owned bank was the Allahabad Bank, which was established in 1865. By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai both of which were founded under private ownership. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After Indias independence in 1947, the Reserve Bank was nationalized and given broader powers. Early history At the end of late-18th century, there were hardly any banks in India in the modern sense of the term. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century. At the beginning of the 20th century, Indian economy was passing through a relative period of stability. Around five decades have elapsed since the Indias First war of Independence, at that time there were very small banks operated by Indians, and most of them were owned and operated by particular communities. The banking in India was controlled and dominated by the presidency banks, namely, the Bank of Bombay, the Bank of Bengal, and the Bank of Madras which later on merged to form the Imperial Bank of India, and Imperial Bank of India, upon Indias independence, was renamed the State Bank of India. There was potential for many new banks as the economy was growing. many Indians came forward to set up banks, and many banks were set up at that ti me, a number of which have survived to the present such as Bank of India and Corporation Bank, Indian Bank, Bank of Baroda, and Canara Bank. During the Wars The period during the First World War (1914-1918) through the end of the Second World War (1939-1945), and two years thereafter until the independence of India were challenging for the Indian banking. The years of the First World War were turbulent, and it took toll of many banks which simply collapsed despite the Indian economy gaining indirect boost due to war-related economic activities. At least 94 banks in India failed during the years 1913 to 1918. Post-independence The partition of India in 1947 had adversely impacted the economies of Punjab and West Bengal, and banking activities had remained paralyzed for months. In 1948, the Reserve Bank of India, Indias central banking authority, was nationalized, and it became an institution owned by the Government of India. In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) to regulate, control, and inspect the banks in India. The Banking Regulation Act also provided that no new bank or branch of an existing bank may be opened without a licence from the RBI, and no two banks could have common directors. Nationalisation By the 1960s, the Indian banking industry has become an important tool to facilitate the development of the Indian economy. Indira Gandhi, the-then Prime Minister of India expressed the intention of the GOI in the annual conference to nationalised the 14 largest commercial banks with effect from the midnight of July 19, 1969. A second dose of nationalisation of 6 more commercial banks followed in 1980. The stated reason for the nationalisation was to give the government more control of credit delivery. With the second dose of nationalisation, the GOI controlled around 91% of the banking business of India. After this, until the 1990s, the nationalised banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy. Liberalisation In the early 1990s the then Narsimha Rao government embarked on a policy of liberalisation and gave licences to a small number of private banks. This move, along with the rapid growth in the economy of India, kickstarted the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks. The next stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%,at present it has gone up to 49% with some restrictions. Current Situation Currently, India has 88 scheduled commercial banks (SCBs) 28 public sector banks (that is with the Government of India holding a stake), 29 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively. INDUSTRY DYNAMICS The Indian Banking industry is one of the most robustly developed banking system in the world comprising 28 PSU banks, 33 private banks and 35 foreign banks. Together these are known as scheduled commercial banks (SCBs). Apart form the SCBs, there exists 133 regional rural banks (RRBs) and four local area banks, 1853 urban co-operative banks and 109924 rural co-operative banks. The government of India nationalised 14 banks in 1969 and another six in 1980. Privatisation in the sector was allowed in 1993. ICICI Bank and HDFC Bank were the first to thrive thereafter. PSU major Sate bank of India is one of the 100 largest banks in the world. Industry Size The size of Indias financial and banking sector is quite low when compared to other countries. Omnipresence Banking is the only sector influencing all components of the GDP in one way or the other. It is the only sector that can help you capitalise on all the three key themes of the India growth story — consumption, investment and foreign trade. It drives acts as a source of funds for the infrastructure sector (construction, basic materials like cement metals and engineering). It promotes consumption through its complex machanisms for the FMCG, auto, pharma and the real estate sector. Under penetrated From a Banking and Financial Services perspective, India is an under penetrated market. The total credit as a percentage of GDP is 53% as compared to 80% in case of Japan, 83% incase of Korea.China and Malaysia have the highest credit penetration of 108% and 109% respectively. Retail credit penetration is a measly 13% in India much lower than 61% in Malaysia and 41% 23% in case of Korea and Japan. Also, India is under-insured when it comes to life and non-life insurance (penetration of just 4% in case of life insurance and 1% in case of non life insurance). TYPES OF BANKS  § ON THE BASIS OF ACTIVITIES: Banks activities can be divided into: Retail banking, dealing directly with individuals and small businesses. Business banking, providing services to mid-market business. Corporate banking, directed at large business entities. Private banking, providing wealth management services to High Net Worth Individuals and families. Investment banking, relating to activities on the financial markets Most banks are profit-making, private enterprises. However, some are owned by government, or are non-profits. Central banks are normally government owned banks: charged with quasi-regulatory responsibilities, e.g. supervising commercial banks. They generally provide liquidity to the banking system and act as Lender of last resort in event of a crisis. ON THE BASIS OF OWNERSHIP: Banks as classified on ownership basis can be categorised into: Public banks,owned and managed by government. Private banks,owned and managed by private enterpreneurs. Foreign banks,owned and managed by foreign institutions. Commercial banks Commercial banks can have two meanings: Commercial bank is the term used for a normal bank to distinguish it from an investment bank. Commercial bank can also refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses, as opposed to normal individual members of the public (retail banking). Commercial bank is engaged in the following activities: processing of payments by way of telegraphic transfer, EFTPOS, internet banking or other means issuing bank drafts and bank cheques accepting money on term deposit lending money by way of overdraft, installment loan or otherwise providing documentary and standby letter of credit, guarantees, performance bonds, securities underwriting commitments and other forms of off balance sheet exposures safekeeping of documents and other items in safe deposit boxes currency exchange sale, distribution or brokerage, with or without advice, of insurance, unit trusts and similar financial products as a â€Å"financial supermarket† Types of loans granted by commercial banks Secured loan A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral (i.e., security) for the loan. Mortgage loan A mortgage loan is a very common type of debt instrument, used to purchase real estate. Under this arrangement, the money is used to purchase property. Commercial banks, however, are given security a lien on the title to the house until the mortgage is paid off in full. If the borrower defaults on the loan, the bank would have the legal right to repossess the house and sell it, to recover sums owing to it. Unsecured loan Unsecured loans are monetary loans that are not secured against the borrowers assets (i.e., no collateral is involved). These may be available from financial institutions under many different guises or marketing packages: credit card debt, personal loans, bank overdrafts credit facilities or lines of credit corporate bonds Retail banks Retail banking refers to banking in which banks undergo transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and checking accounts, mortgages, personal loans, debit cards, credit cards, and so forth. Investment banks Investment banks are financial intermediaries that perform a variety of services. This includes underwriting, acting as an intermediary between an issuer of securities and the investing public, facilitating mergers and other corporate reorganizations, and also acting as a broker for institutional clients. In other words can be said that, Investment banks help companies and governments raise money by issuing and selling securities in the capital markets (both equity and debt), as well as providing advice on transactions such as mergers and acquisitions Types of investment banks Investment banks underwrite (guarantee the sale of) stock and bond issues, trade for their own accounts, make markets, and advise corporations on capital markets activities such as mergers and acquisitions. Merchant banks were traditionally banks which engaged in trade financing. The modern definition, however, refers to banks which provide capital to firms in the form of shares rather than loans. Unlike venture capital firms, they tend not to invest in new companies. Private banking Private banking is a term for banking, investment and other financial services provided by banks to private individuals disposing of sizable assets. The term private refers to the customer service being rendered on a more personal basis than in mass-market retail banking, usually via dedicated bank advisers. Personalized financial and banking services that are traditionally offered to a banks rich,high net worth individuals (HNWIs). Public banks Banks, which are incorporated, owned and regulated by government. Private banks Private banks are banks that are not incorporated. A non-incorporated bank is owned by either an individual or a general partner(s) with limited partner(s). In any such case, the creditors can look to both the entirety of the banks assets as well as the entirety of the sole-proprietors/general-partners assets. Private banks and private banking can also refer to non-government owned banks in general, in contrast to government-owned (or nationalized) banks. NON-BANKING FINANCIAL CORPORATION Non-bank financial companies (NBFCs) are financial institutions that provide banking services without meeting the legal definition of a bank, i.e. one that does not hold a banking license. Operations are, regardless of this, still exercised under bank regulation. However this depends on the jurisdiction, as in some jurisdictions, such as New Zealand, any company can do the business of banking, and there are no banking licences issued. NBFCs are doing functions akin to that of banks, however there are a few differences: (i) A NBFC cannot accept demand deposits; (ii) it is not a part of the payment and settlement system and as such cannot issue cheques to its customers; and (iii) deposit insurance facility of DICGC is not available for NBFC depositors unlike in case of banks. It is mandatory that every NBFC should be registered with RBI to commence or carry on any business of non-banking financial institution as defined in clause (a) of Section 45 I of the RBI Act, 1934.However, to obviate dual regulation, certain category of NBFCs which are regulated by other regulators are exempted from the requirement of registration with RBI viz. Venture Capital Fund/Merchant Banking companies/Stock broking companies registered with SEBI, Insurance Company holding a valid Certificate of Registration issued by IRDA, or Housing Finance Companies regulated by National Housing Bank. All NBFCs are not entitled to accept public deposits. Only those NBFCs holding a valid Certificate of Registration with authorization to accept Public Deposits can accept/hold public deposits. The NBFCs accepting public deposits should have minimum stipulated Net Owned Fund and comply with the Directions issued by the Bank. There is ceiling on acceptance of Public Deposits. A NBFC maintaining required NOF/CRAR and complying with the prudential norms could accept public deposits as follows: Category of NBFC Ceiling on public deposits AFCs maintaining CRAR of 15% without credit rating. AFCs with CRAR of 12% and having minimum investment grade credit rating. 1.5 times of NOF or Rs.10crore whichever is less. 4 times of NOF LC/IC with CRAR of 15% and having minimum investment grade credit rating. 1.5 times of NOF AFC-Asset financing Company LC-Loan Company IC-Investment Company If a NBFC defaults in repayment of deposit, the depositor can approach Company Law Board or Consumer Forum or file a civil suit to recover the deposits Some other types of banks: An advising bank (also known as a notifying bank) advises a beneficiary (exporter) that a letter of credit (L/C) opened by an issuing bank for an applicant (importer) is available and informs the beneficiary about the terms and conditions of the L/C. The advising bank is not necessarily responsible for the payment of the credit which it advises the beneficiary of. Community development banks (CDBs) are banks designed to serve residents and spur economic development in low- to moderate-income (LMI) geographical areas. When CDBs provide retail banking services, they usually target customers from financially underserved demographics. a custodian bank, or simply custodian, refers to a financial institution responsible for safeguarding a firms or individuals financial assets. The role of a custodian in such a case would be the following: to hold in safekeeping assets such as equities and bonds, arrange settlement of any purchases and sales of such securities, collect information on and income from such assets, provide information on the underlying companies and provide regular reporting on all their activities to their clients A depository bank is a bank organized in the United States which provides all the stock transfer and agency services in connection with a depository receipt program. This function includes arranging for a custodian to accept deposits of ordinary shares, issuing the negotiable receipts which back up the shares, maintaining the register of holders to reflect all transfers and exchanges, and distributing dividends. Islamic banking refers to a system of banking or banking activity that is consistent with Islamic law (Sharia) principles and guided by Islamic economics. In particular, Islamic law prohibits the collection and payment of interest.In addition, Islamic law prohibits investing in businesses that are considered unlawful. A mutual savings bank is a financial institution chartered through a state or federal government to provide a safe place for individuals to save and to invest those savings in mortgages, loans, stocks, Bonds and other securities. An offshore bank is a bank located outside the country of residence of the depositor, typically in a low tax jurisdiction that provides financial and legal advantages. Banking Industry Strucure in India CENTRAL BANK A central bank, reserve bank, or monetary authority is the entity responsible for the monetary policy of a country. Its primary responsibility is to maintain the stability of the national currency and money supply, but more active duties include controlling subsidized-loan interest rates, and acting as a bailout lender of last resort to the banking sector during times of financial crisis. ). It may also have supervisory powers, to ensure that banks and other financial institutions do not behave recklessly or fraudulently. History The oldest central bank in the world is the Riksbank in Sweden, which was opened in 1668 with help from Dutch businessmen. This was followed in 1694 by the Bank of England, created by Scottish businessman William Paterson in the City of London at the request of the English government to help pay for a war. Activities and responsibilities Functions of a central bank implementation of monetary policy controls the nations entire money supply the Governments banker and the bankers bank (Lender of Last Resort) manages the countrys foreign exchange and gold reserves and the Governments stock register; regulation and supervision of the banking industry: setting the official interest rate used to manage both inflation and the countrys exchange rate and ensuring that this rate takes effect via a variety of policy mechanisms Monetary policy: Central banks implement a countrys chosen monetary policy. At the most basic level, this involves establishing what form of currency the country may have, whether a fiat currency, gold-backed currency, currency board or a currency union. Currency issuance: Many central banks are banks in the sense that they hold assets (foreign exchange, gold, and other financial assets) and liabilities. Central banks generally earn money by issuing currency notes and selling them to the public for interest-bearing assets, such as government bonds. Interest rate interventions: Typically a central bank controls certain types of short-term interest rates. These influence the stock- and bond markets as well as mortgage and other interest rates. Policy instruments The main monetary policy instruments available to central banks are: open market operation bank reserve requirement interest rate policy credit policy capital adequacy is important, it is defined and regulated by the Bank for International Settlements, and central banks in practice generally do not apply stricter rules. Open Market Operations: Through open market operations, a central bank influences the money supply in an economy directly. Each time it buys securities, exchanging money for the security, it raises the money supply. Conversely, selling of securities lowers the money supply. Buying of securities thus amounts to printing new money while lowering supply of the specific security. Reserve Requirement: Another significant power that central banks hold is the ability to establish reserve requirements for other banks. By requiring that a percentage of liabilities be held as cash or deposited with the central bank (or other agency), limits are set on the money supply. Interest Rate Policy: By far the most visible and obvious power of many modern central banks is to influence market interest rates. The mechanism to move the market towards a target rate is generally to lend money or borrow money in theoretically unlimited quantities, until the targeted market rate is sufficiently close to the target. Central banks may do so by lending money to and borrowing money from (taking deposits from) a limited number of qualified banks, or by purchasing and selling bonds. Capital requirements: All banks are required to hold a certain percentage of their assets as capital, a rate which may be established by the central bank or the banking supervisor. Capital requirements may be considered more effective than deposit/reserve requirements in preventing indefinite lending: when at the threshold, a bank cannot extend another loan without acquiring further capital on its balance sheet. Entry regulation Currently in most jurisdictions commercial banks are regulated by government entities and require a special bank licence to operate. Unlike most other regulated industries, the regulator is typically also a participant in the market, i.e. government owned bank (a central bank). The requirements for the issue of a bank licence vary between jurisdictions but typically incude: Minimum capital Minimum capital ratio Fit and Proper requirements for the banks controllers, owners, directors, and/or senior officers Approval of the banks business plan as being sufficiently prudent and plausible. Banking channels A branch, banking centre or financial centre is a retail location where a bank or financial institution offers a wide array of face-to-face service to its customers ATM. Mail. Telephone banking Online banking Bank crisis liquidity risk -the risk that many depositors will request withdrawals beyond available funds credit risk -the risk that those who owe money to the bank will not repay interest rate risk- the risk that the bank will become unprofitable if rising interest rates force it to pay relatively more on its deposits than it receives on its loans. Profitability A bank generates a profit from the differential between the level of interest it pays for deposits and other sources of funds, and the level of interest it charges in its lending activities. This difference is referred to as the spread between the cost of funds and the loan interest rate. Bank Regulations Bank regulations are a form of government regulation which subject banks to certain requirements, restrictions and guidelines. The objectives of bank regulation, and the emphasis are: Prudential to reduce the level of risk bank creditors are exposed to Systemic risk reduction to reduce the risk of disruption resulting from adverse trading conditions for banks causing multiple or major bank failures Avoid Misuse of Banks to reduce the risk of banks being used for criminal purposes, e.g. laundering the proceeds of crime To protect banking confidentiality Credit allocation to direct credit to favoured sectors . General Principles of Bank Regulation Banking regulations can vary widely across nations and jurisdictions. Thes are some of the general principles of bank regulation throughout the world Minimum Requirements Requirements are imposed on banks in order to promote the objectives of the regulator. The most important minimum requirement in banking regulation is minimum capital ratios. Supervisory Review Banks are required to be issued with a bank licence by the regulator in order to carry on business as a bank, and the regulator supervises licenced banks for compliance with the requirements and responds to breaches of the requirements through obtaining undertakings, giving directions, imposing penalties or revoking the banks licence. Market Discipline The regulator requires banks to publicly disclose financial and other information, and depositors and other creditors are able to use this information to assess the level of risk and to make investment decisions. As a result of this, the bank is subject to market discipline and the regulator can also use market-pricing information as an indicator of the banks financial health. Instruments and Requirements of Bank Regulation Capital requirement The capital requirement is a bank regulation, which sets a framework on how banks and depository institutions must handle their capital. The categorization of assets and capital is highly standardized so that it can be risk weighted. The capital ratio is the percentage of a banks capital to its risk-weighted assets. Reserve requirement The reserve requirement sets the minimum reserves each bank must hold to demand deposits and banknotes. The purpose of minimum reserve ratios is liquidity rather than safety. Corporate Governance Corporate governance requirements are intented to encourage the bank to be well managed and also to achieve certain objectives as to maintain it as a body corporate, maintaining minimum number of members and organisational structure etc. Financial Reporting, Disclosure and Prospectus Requirements Banks may be required to: Prepare annual financial statements according to a financial reporting standard, have them audited, and to register or publish them . Prepare more frequent financial disclosures. Have directors of the bank attest to the accuracy of such financial disclosures. Prepare and have registered prospectuses detailing the terms of securities it issues. Credit Rating Requirement Banks may be required to obtain