Human Behaviour in Organisations Essay Example | Topics and Well Written Essays - 1000 words

Human Behaviour in Organisations - Essay Example Transactional leaders differ from transformational leaders, in the fact that they do not seek to transform the future. The aim of the transactional leader is to preserve the extant state of affairs (Odumeru & Ogbonna, 2013, p. 358). Transactional leadership is of great value in addressing crisis and emergency situations, and in completing projects in some specific manner. The Trait Theory of Leadership presumes the presence of inherited traits among people, and that some of these traits are especially suited to leadership. Effective leaders possess specific characteristics, and great leaders have certain common personality traits. This theory attempts to identify the physical, mental, and personality features associated with successful leadership (Chartered Technofunctional Institute, 2013). For several years, the trait theory had been ignored and it had been assumed that situational and learned factors were of greater significance than inherited traits among individuals accomplishing leadership roles. Subsequently, behavioral genetics has emphasized that genes and inherited traits have a significant effect on the individual (Warrilow, 2014). It is this writer’s opinion that leaders are made and not born. Upon assuming that leaders are born, most of their children would have become great leaders. This does not transpire. Hence, leaders are crafted by the situation and not hereditary. It has been concluded by researchers that successful leadership emerges from the interaction between the situation and the characteristics of the leader. This interaction has been regarded as the key to understanding leadership, in conjunction with the crucial situational and trait variables (Fleenor, 2006, p. 832). In the contemporary business world, it is essential for a company to possess the creative ability.  

Comparing and contrasting Achilles and other warriors Essay Example for Free

Comparing and contrasting Achilles and other warriors Essay Comparing and contrasting Achilles and other warriors Introduction   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Achilles is one of the main characters in Homer’s Iliad. Iliad is a legendary epic covering the formative years of Roman and Greek mythology. Iliad pursue glory, heroism, and love within the authority and influence of supernatural powers. Achilles possessed heroic strength and also had close contact with the gods. Achilles had all the qualities of a grand warrior and he proved to be the most dominant man among the Achaean army. However his deeply rooted character barred his capacity to act with integrity and nobility. The rationale of this paper is to analyze the character of Achilles and examine how he was similar of differed from other heroic warriors.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Achilles could not manage his pride or the fury that came about when his pride was injured. These attributes greatly affected Achilles life since he abandoned his fellow warriors because he had been insulted before Agamemnon, his commander. Achilles even wished his fellow warriors to be killed by Trojan warriors. He was driven by thirst for glory and was willing to sacrifice anything for his reputation. Achilles had extreme temper; for example, though the demise of Patroclus provoked him to reconcile with Agamemnon, this did not alleviate his fury but he directed his anger to Hector (Homer, 1990, p. 32). Achilles forfeited twelve Trojan men at the funeral of Patroclus, he also killed his opponents mercilessly and shamefully vandalized the corpse of Hector. These events reveal Achilles great anger because he was mourning the death of Patroclus. Achilles pride, bloodlust and wrath affected him adversely (Virgil, 2006, p. 42).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Achilles is recognized as the greatest warrior in Achaian army and no other warrior could match him as a fighter. Achilles has a great sense of social order because he decided to act during the plague that was consuming the soldiers at Achaian camp. Agamemnon, Achille’s kind did not act so Achilles decided to find out the cause of the plague by calling for a congregation of the entire army. Achilles is argumentative and petulant because he argues that though Agamemnon gets the best prizes from war, he never worked for them. In the course of argument, Achilles almost killed Agamemnon, though he was saved from carrying out the heinous act by goddess Athena. Achilles believed that the quarrel between him and the king was righteous and same as the war against Trojan army. Achilles major characteristic was excessive pride because he remained angry even after Agamemnon promise to return Briseis alongside other gifts (Vigil, 2006, p. 47).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Gilgamesh is a warrior who fears death throughout George XIII epic. Achilles on the other hand is also very keen with his metaphoric wickedness that can only take place after the death of his earthly life. Gilgamesh and Achilles have a lot of similarities, which include dynamic attitude on death and life centered. They have similar attitudes especially when their heroic comrades died. The death of Patroclus touched Achilles very much whereas the death of Enkidu also caused much distress to Gilgamesh. Achilles and Gilgamesh are two semi-divine heroes who have various matching characteristics and life-events, and they focused a lot with their mortal lives, but not relatively in the same approach. Achilles and Gilgamesh share fundamental similarities in their mortal lives. Each of them is a child of a goddess and a mortal man who happens to be a king. Achilles is a son of Thetis and has an exceptional rapport which enables him to speak with t he gods with the help of Thetis (Homer, 1990, p 27). Gilgamesh on the other hand is regarded as one third human and two third god, which makes him to stand out as an exceptional character that exists in relationships with both the mortal world and divine world. Iliad relates the preeminence of Achilles and Gilgamesh in battle where they reveal themselves as headstrong warriors.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Neither Achilles nor Gilgamesh is concerned with romantic and family relationships. The major relationship these epic heroes have is with their mothers, where they seek protection and guidance. Through this rapport, they are able to gain development and wisdom. Achilles can also be compared to other heroes such as Aenes since their lives is determined by supernatural powers. In the book Iliad and Aeneid, Achilles and Aenes are characters who reveal their chivalry and bravely. In the books, Aenes and Achilles are chosen by gods and favored in various periods of their lives (Homer, 1990, p.26). These characters have predestined death and fate, they are sons of gods and they have specific accomplishment and mission in their lives. The major difference between Achilles and Gilgamesh is on anger management. Even after the death of his friend Enkidu, Gilgamesh remains cool and does not translate his fury to anyone, but Achilles anger could not b e controlled after the death of Patroclus. Gilgamesh mourns the death of his friend by ritually pulling his clothes and hair, but Achilles mourns the death of Patroclaus by killing several Trojan warriors.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   An in depth analysis of the epics of the era reveal contrasting features of the heroes. The circumstance, the physical features and situation might be similar, but the discrepancy is mainly due to mental and intellect framework of the heroes. Aenes fought major battles just like Achilles, but their fate was different. Achilles was predestined to die in the battle, while Aenes was predestined to be an architect of a huge town in the planet. Achilles was more of a cruel enemy and fierce warrior and his task was to wrestle and triumph over bloody wars. On the other hand, Aenes was more civilized and constructive in comparison to arrogant Achilles. Achilles is violent, stubborn, ruthless and hostile and had a capacity to kill Trojan warriors ruthlessly in the battlefield. Achilles battle and attack intended huge massacre. On contrary, Aenes is more placid and sober. Aenes as a warrior had adorable features of restraint, chastity, discipline an d love. He was a true leader who never left his comrades. Aenes led the warriors to pursue new home and new culture. He was a fighter, but not even once did he display emotions and power in arbitrary and cruel manner (Vigil, 2006, p. 74).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In conclusion, Achilles was a great warrior, but he was a merciless fighter who killed many Trojan warriors. Achilles shared similar features with other heroes in the epics. These heroes fate was usually predestined and they were mostly sons of gods. They sought advice from their mothers which helped them to develop and gain wisdom. However, an in depth analysis on the character of these heroes depict that there are some differences. Achilles was a violent warrior as compared to most heroes who were able to manage their fury. In addition, Achilles, Aenes and Gilgamesh were heroes of their times. References Homer, Robert Fagles, and Bernard Knox. The Iliad. New York: Viking,  1990. Print. Hope Nash Wolff. Gilgamesh, Enkidu, and the Heroic Life. Journal of the American Oriental Society 89.2  (1969): 392-398. Web. Virgil, R. Fagles, B. Knox, and S. Callow. The Aeneid. New York: Penguin Audio,  2006. Print. Source document

Basel II Accord Effects on Qatar Banking

Basel II Accord Effects on Qatar Banking International banking is increasingly vital for every country in order to create an image for itself in the international finance market Chapter 1: Introduction International banking is increasingly vital for every country in order to create an image for itself in the international finance market. Alongside, the increase in globalisation and the upsurge in outsourcing by multinational companies in the west have created a lot of opportunities for growth in the Middle East and Far Eastern countries. This apparently requires a strong internationally stable financial organization to conduct transactions across the globe without any errors (i.e.) 100% accuracy.   This includes reliability and stability of the bank under extreme situations (like emergency for example), which is highly important to conduct international transactions. Also the potential to meet financial demands during crisis situations is a vital criterion that is considered while presenting themselves in the international market. In addition to the globalisation, outsourcing and export/import growth, there is also a tremendous growth in cross-border finance among the countries in the Middle East and Far East. Along with all these factors the developing nations in the Middle East face a mandatory requirement of a sable international banking system in order to attract foreign investment. The increase in cross border finance activity among the middle eastern countries is also a critical element to be considered for establishing a stable international bank within the nation in order to represent the country in the international finance market. The countries in the Middle East are actively participating in cross-border finance since the dawn of the 21st century. Being a producer of Oil which is a vital ingredient at all levels of life right from day-to-day driving up to power generation for the nation in order to run industries and serve domestic purposes, makes it critical for the nations in the Middle East to have a strong international banking system to conduct transactions across the globe accurately and effectively. Qatar is a growing nation in the Middle East with primary operations in oil and gas export as well increasing its potential in areas of development in technology focusing on IT and communication. The nation has efficient international operations and con ducts financial transactions between western nations as well as with eastern nations. Since the take over of the government by H.H. Sheikh Hamad Bin Khalifa in 1995, the country is making tremendous progress in deploying its hydrocarbon resources in order to penetrate in the international market and present itself as a financially stable nation in the international market. Further to the increase in the international operations by the countries in the Middle East and the Far East, the Bank for International Settlements developed a framework to co-ordinate the international financial operations as well as create a portfolio for the capital measurement and capital standards which every nation involving in international banking operations is expected to adopt in order to stabilise and put in order the international transactions between countries. The Basel II accord produced by Basel Committee on Banking Supervision aims at achieving International Convergence of Capital Measurement and Capital Standards. The arrangement aims to set a minimum standard to be met by its participating nations in order to achieve capital adequacy by the participating nations in the international market. This report aims at analysing the effects of Basel II accord on Qatar’s banking sector. The objectives of this report are stated below: To analyse the Basel II accord and it’s framework for measuring capital adequacy in the nations participating in the international banking transaction. To investigate the banking sector of Qatar and the effect of Basel II accord on its international operations and capital adequacy. To analyse the effect of Basel II accord on the nation’s two major banks having international operations in Qatar namely, Qatar Industrial Development Bank (QIDB) and Commercial Bank of Qatar (CBQ) and to analyse the impact of Basel II Accord on the Banking Sector of Qatar. Report Outline: The report comprises of the following chapters. Chapter 1: Introduction This chapter introduces the reader to the objectives of the report and presents a broad picture of the report to the reader. Chapter 2: Overview of Basel II Accord This chapter presents with an overview of the Basel II accord. The three pillars of Basel II accord namely Minimum Capital Requirements, Supervisory Review Process and Market Discipline are analysed in detail to provide the reader with a detailed understanding of the consent of Basel Committee on Banking Supervision. Chapter 3: Implications and Critical Analysis of Basel II Accord The literature review on the Basel II Accord in chapter 2 is followed by the critical analysis and its implications on nations (business and political) are presented to the reader before proceeding to present the overview of the Qatar Banking sector.    Chapter 4: Overview of Qatar and its Banking Sector This chapter presents the reader with an overview of Qatar as a nation and its business operations in the International market. Alongside, the chapter analyses the country’s growth in the banking sector and its internationally active banks. Chapter 5: Case Study This chapter conducts a case study analysis on Qatar’s two internationally active banks namely Qatar Industrial Development Bank (QIDB) and Commercial Bank of Qatar (CBQ). The effect of Basel II accord on the banks along with an overview of the bank is presented to the reader. The data used to present the case study is primarily obtained from secondary sources like journals, reports and white papers. This is apparently due the fact that the analysis is conducted on a foreign nation as well as the data available from the secondary sources are also reliable as they are published by legitimate organizations and popular journals.   Chapter 6: Results and Discussions The results of the case study analysis and discussions are carried out in this chapter. This chapter aims to present a clearer picture to the reader on the effects of the Basel II accord on the banks analysed. Chapter 7:   Conclusion and Recommendations The conclusions derived from the case results and discussions on the case study and the overall conclusion on the effect of Basel I accord on the Qatar Banking Sector is presented in this chapter. Alongside, this chapter presents a few constructive recommendations based on the results and discussion on the case study. Chapter 2: Overview of Basel II Accord This chapter begins with an overview of the Bank for International Settlements followed by a detailed analysis of the Basel II accord. The Basel II committee is also analysed alongside in order to provide a deeper insight to the readers. 2.1 Bank for International Settlements Overview and it’s Operations The Bank for International Settlements (Bank for International Settlements) is an international organization looking after international monetary and financial co-operation across the globe. This organization acts as the bank for all the central banks of countries participating in the international finance and banking. The Bank for International Settlements profile states that the bank achieves the aforementioned statement through acting as A forum to promote discussion and facilitate decision-making processes among central banks and within the international financial and supervisory community. A centre for economic and monetary research A prime counter party for central banks in their financial transactions and Agent or trustee in connection with international financial operations. Established in 17th Many 1930, it is the oldest financial organization at the international level. The Bank for International Settlements has three major decision making bodies within the bank to achieve its mission. They are The general meeting of member central banks This meeting is held before the end of four months of the end of the banks annual financial year. The meeting addresses all the issues related to business and the member central banks gather to approve the annual financial statement released by the bank. The Board of Directors The board of directors comprise the central bank governors elected from various participating countries. They monitor the overall operation of the bank and take responsibility for actions to be taken and address issues related to disputes and other major international financial cross border problems. The Management Committee The management committee is the first line representative of the Bank for International Settlements and addresses the day-to-day activities of the bank. This committee primarily manages the monetary and financial co-operation services. The services include Meetings: Apart from the Annual general meeting the Bank for International Settlements organizes meetings on a bimonthly basis. This meeting brings the member central banks together with the aim of monitoring the global economic and financial development and discusses issues on its policies in relation to the monetary and financial stability. Committees and Secretariats Bank for International Settlements has several committees to monitor specific problems and issues in the international finance and cross border loans. Alongside, several other committees and organizations focusing on international financial systems have their secretariats in the Bank for International Settlements and work closely with the bank in order to enhance the overall international banking and cross border finance. Basel committee of the Bank for International Settlements is the committee that laid the specifications for capital measurement and capital standard of the central banks participating in the international banking. Research and Statistics: In order to support its meetings and the activities of the organization’s Basel based committees the Bank for International Settlements carries out regular research on economic, monetary, financial and legal areas of the international banking and cross border finance. Investment services for central banks: Bank for International Settlements also provides security, liquidity and return for its central bank members. The three primary points with respect to this identified by the organization are: To provide security, the Bank has built up a sizeable equity capital and ample reserves. It pursues an investment strategy focused on combining diversification benefits with intensive credit and market risk analysis. To ensure liquidity, the Bank stands ready to repurchase its tradable instruments at little cost to its customers and thus respond quickly and flexibly to their needs. The BIS offers an attractive and competitive return on the funds deposited by central banks and international organisations The Bank for International Settlements focuses on serving the financial needs of central banks of the member countries. Alongside, it also acts as a banker managing the funds for numerous international financial institutions. 2.2: Basel committee Overview The Basel committee was established the member central banks of the Bank for International Settlements in order to create a standard for the international banking and capital framework for crass border finance and lending. The committee was initially set up in 1970 and meets regularly four times a year to discuss the progress in international banking and address issues related to business in this context. The member nations of the committee include Belgium, Canada, France, Germany, Italy, Japan, Luxembourg, the Netherlands, Spain, Sweden, Switzerland, United Kingdom and United States. The country’s central bank and financial institutions that are not active in banking commercially but monitor the financial operations of the nation both at national and international levels represent the nations. The committee does no possess any authority over its member nations banking systems and the decisions of the committee are never intended to have a legal force on its member nations. The Central bank governors of the Group ten countries endorse the committee’s major initiatives. Also the committee reports to the group ten countries central bank governors. The committee first proposed he capital measurement system in 1988 commonly referred to as ‘Basel Capital Accord’. The committee aims in supervising the international banking operations of the nations across the globe. The decisions of the committee endorsed by the group ten countries address various financial issues in the international market outside the groups as well. The major aim of the committee is the ‘close the gaps in international supervisory coverage’ and to ensure that no foreign banking systems escapes the supervision in order to establish a harmony among the member nations of the Bank for International Settlements as well as in the international market. The committee has promoted supervisory standards in the past few years. Some of its major milestones include the following 1997: Cover Principles for effective banking supervision 1999: Core Principles methodology The committee also presented the Basel II accord with revision on international capital framework. This aims to standardise the capital framework of every bank participating in the international banking as well as sets slabs for minimum capital holdings to be met by the banks in order to qualify for international operations. The committee has numerous subgroups to perform specific tasks of the committee in order to achieve the overall motto of the committee. They are listed below Accord Implementation Group Accounting Task Force Capital Group Capital Task Force Core Principles Liaison Group (with 16 non-G10 countries) Cross-Border Banking Group Electronic Banking Group Joint Forum (with IAIS and IOSCO) Joint IOSCO BCBS Working Group on Trading Book Research Task Force Risk Management Group Securitisation Group Transparency Group The next section provides a detailed analysis of the Basel II accord and its various implications on international banking is discussed in chapter 3. 2.3 The Basel II Accord The Basel II accord was released in June 2004 further to the release of the Basel Accord in 2003. The Basel II is a revised edition of the initial Basel capital accord. It is a framework designed to derive the capital holdings of internationally active banks to meet the international standards and sets a minimum level of capital holding which is a primary criteria for the banks. The Basel II framework is aimed to be applied on a consolidated basis over internationally active banks in order to preserve the integrity of capital in the banks with subsidiaries. Also the framework eliminates the double gearing through this approach. The Basel II accord’s framework is also applied on a fully consolidated basis on any parent holding company which acts as a parent entity within a banking group in order to capture the risk on a consolidated basis without missing any element that contributes considerably to the risk of the overall banking system. Alongside, the framework is also applicable to all internationally active banks at every tier of the banking group. Apart from the aforementioned statements one of the principal objectives of the Basel II Accord is to protect the interest of the depositors essentially to ensure that capital recognised capital adequacy measures is readily available for the depositors. Apparently, these measures are aimed to establish a common platform for international banking and cross border finance across the globe. The scope of application extends to the following segments of the international banking and finance entities. Banking, securities and other financial subsidiaries Significant minority investments in banking securities Insurance entities Significant investment in commercial entities. Deduction of investment pursuant to this part The aforementioned entities are obtained from the Basel Committee report on International Convergence of Capital Measurement and Capital Standards, published in June 2004. The Basel II accord overview is based on this report. The illustration in the fig 1 gives a clear picture of the overall scope of application of the Basel II accord. The Basel II accord is split into three pillars. The first Pillar: Minimum Capital Requirements The following subsections provide a detailed analysis on the elements shown in fig 2. 2.4: The First Pillar The First pillar lays down the minimum capital requirements that every internationally active bank should incorporate.   It is split into the following subsection. 2.4.1:   Calculation of Minimum capital requirements The minimum capital requirement is calculated as a measure of the capital ration. The capital ratio in turn is calculated using the regulatory capital and risk-weighted assets. The requirement of this criterion is that the capital ration must be a minimum of 8% or more in order to be eligible for the international activities. Also, in case of a two tier system the capital in tier 2 must not be greater than the tier 1 capital (i.e.) the tier 2 capital can be a maximum of 100% of the tier 1 capital. The capital is accounted from the following sources    Regulatory capital: The minimum accounting capital requirements for the financial institution encompasses the regulatory capital. The Basel II accord has withdrawn the provision to include general provisions in tire 2 capital, which was in effect in the 1988 Accord under the Internal Ratings-Based (IRB) approach.   Furthermore the accord has lain down that the banks using the Internal Ratings Based approach to their other assets mus t compare the amount of total eligible provision with the total expected losses amount to the bank. This eventually increases the capital holding of the bank in order to meet the criteria. Risk Weighted Assets: The Basel II Accord calculates the total risk-weighted assets by multiplying the capital requirement for market risk and operational risk by the reciprocal of the minimum capital ratio of 8% and adding the resulting value to the sum of risk weighted assets for credit risk. Even though this is subject to review the approach lays enormous burden on the bank to increase its minimum capital holdings. Apparently the Basel II Accord is aiming to establish that the internationally active banks must have enough capital to meet its short comings without depending on loans and cross border finance to address its immediate requirements and short comings. The idea though being novel is very intense for the banks to maintain the required minimum capital. 2.4.2: Credit Risk-The Standardised Approach Under this method the Basel committee provides the internationally active banks a choice for calculating their capital requirements for credit risk. The first approach is the standardised method of measuring the credit risk through support from external credit assessments. This method is approved by the Basel committee while the other method is yet to explicitly approved by the committee. Under the alternate method of calculating the credit risk, the bank supervisor can allow banks to use their internal rating systems for calculating the credit risk. Under both the methodologies one should not oversee the fact that the Basel committee is very keen in assessing the credit risk on the capital holdings of the internationally active banks. Even though this is appreciated, the rules are very stringent making it very difficult for the banks for adopt easily. 2.4.3 Credit Risk- Internal Ratings Based Approach The Basel II committee has given supervisory approval for banks to use the Internal Ratings-Based approach to determine their capital requirement for a given exposure subject to certain minimum conditions and disclosure requirements. The risk components considered include Measures of the probability of default (PD), Loss given default (LGD), The exposure at default (EAD), Effective maturity (M) The Basel II accord states that â€Å"The Internal Ratings Based Approach is based on the measure of unexpected loses (UL) and Expected Loses (EL). Under the Internal Ratings Based Approach, the committee expects the bank to categories their exposures in order to identify the different underlying risk characteristics. The categories include corporate, sovereign, bank, retail and equity. These are identified as the corporate asset classes and the approach further expects the bank to identify the subclasses associated with the asset classes in order to measure the credit risk associated with the exposure. The detailed analysis of every corporate class and its associated subclasses is beyond the scope of this report. In essence the Internal Ratings Based Approach gives the bank more liberty to calculate its credit-risk on the minimum capital requirement for a given exposure. But the producers laid by the Basel II Accord is very tedious to adopt and implement for every corporate class exposure and identifying the subclasses associated. 2.4.4: Credit Risk- Securitisation Framework The Basel Committee in its revised accord, has made it mandatory for the banks to apply the Securitisation Framework for determining regulatory capital requirements on exposure arising from traditional and synthetic Securitisation or similar structures that contain features common to both.   The Basel II accord also states that the capital treatment of the Securitisation exposure must be determined on the basis of the economic substance rather than the legal form of the structure. It is apparent that the securities can be structured in many different ways and the committee has approved the use of either the traditional Securitisation or the synthetic Securitisation framework. Also the Basel II accord expects the supervisor to look at the economic substance of transaction in order to determine whether it should be subject to Securitisation framework or not. This gives the discretionary power to the supervisor to decide on a specific transaction whether to include it in the framework or to eliminate it from the framework towards determining the regulatory capital framework. The traditional Securitisation and the synthetic Securitisation framework are discussed below. Traditional Securitisation: The Basel II Accord defines the traditional framework as â€Å"a structure where the cash flow from an underlying pool of exposures is used to service at least two different stratified risk positions or tranches reflecting different degrees of credit risk†. The advantage with this approach is that the payment to the investors is based on the performance of the specified underlying exposures rather than a derivation from an obligation of the entity originating those exposures. Synthetic Securitisation â€Å"A synthetic Securitisation is a structure with at least two different stratified risk positions or tranches that reflect different degrees of credit risk where credit risk of an underlying pool of exposures is transferred, in whole or in part, through the use of funded (e.g. credit-linked notes) or un-funded (e.g. credit default swaps) credit derivatives or guarantees that serve to hedge the credit risk of the portfolio†. This approach leaves the return to the investors in the hands of the performance of the underlying pool. Apparently, the risk associated is higher since the performance can be affected by numerous causes. From the above-mentioned approaches the Basel II accord’s stand for evaluating the capital and minimum capital requirements are evident. 2.4.5: Operational Risk The operational risk is defined by the Basel Committee as the risk associated with the loss resulting from inadequate or failed internal processes, people, systems or external events. This includes the legal risk with the exclusion of strategic and reputational risk. The Basel II Accord has approved three methods for calculating the operational risk and risk sensitivity with the implications on minimum capital requirements. They are: (i) The Basic indicator approach, (ii) the Standardised Approach and (iii) Advanced Measurement Approach. Basic Indicator Approach: In this case the banks should hold capital for the operational risk equal to the average over the past three years of a fixed percentage. This is expressed as a formula below KBIA = [ÃŽ £ (GI1†¦n x ÃŽ ±)] Where KBIA = the capital charge under the Basic Indicator Approach GI = annual gross income, where positive, over the previous three years n = number of the previous three years for which gross income is positive ÃŽ ± = 15%, which is set by the Committee, relating the industry wide level of required capital to the industry wide level of the indicator. This formula is obtained from the Basel II accord for the purpose of reader understanding. Standardised Approach: The standardised approach divides the bank’s activities into eight-business lines namely corporate finance, trading sales, retail banking, commercial banking, payment settlement, agency services, asset management, and retail brokerage. The likelihood of operational risk exposure is calculated from the gross income associated with each business line that serves as an indicator for the scale of business operations by the bank in that specific area of business or business line. This approach is very clumsy since the gross income associated with the business line varies due to numerous reasons both internal and external. Advanced Measurement Approach: The Advanced Measurement Approach equates the regulatory capital requirement with the risk measure generated by the bank’s internal operational risk measurement system using quantitative and qualitative criteria. The banks can use this method only after the approval by the Committee. The Basel II Accord sets the approach for the banks based on their international activity and significant operational risk exposures. Also, when a bank agrees to use a more sophisticated method, it cannot revert back to the easier method without approval from the supervisor. This eventually increases the burden on the banks to choose a sophisticated method. 2.4.6: Trading Book Issues The final segment of the first pillar is the trading book. Basel Committee defines the trading book as a container of both the financial instruments and commodities held either with trading intent or in order to hedge other elements of the trading book. The trading book forms a vital element for the bank since it is the record of the bank’s financial instruments as well as commodities. The Basel II Accord identifies four key principles for the supervisory process. They are listed below. The basic requirements for the eligibility to trading book capital treatment put forth by the Basel II Accord are as follows Clearly documented trading strategy for the position/instrument or portfolios, approved by senior management (which would include expected holding horizon). Clearly defined policies and procedures for the active management of the position Clearly defined policy and procedures to monitor the positions against the bank’s trading strategy including the monitoring of turnover and stale positions in the bank’s trading book 2.3: The Second Pillar- Supervisory Review Process Basel committee was initially set up for the supervising the internationally active banks and produce a common platform for the smooth transactions and cross border finance. The Basel II Accord has established Supervisory Process as one of the three pillars in order to emphasise its stand on supervisory process. The importance of supervisory process is described below. 2.3.1: Importance of Supervisory Process The supervisory review process of the Basel II Accord aims not only to ensure that banks have adequate capital to support all the risks in their business but also intends to encourage the banks to develop and use better risk management techniques in monitoring and managing risks. Alongside, the supervisory process by developing internal capital assessment process and setting capital targets that are commensurate with the bank’s risk profile recognises the importance for bank management in order to improve the atmosphere in the international banking and cross border finance. The Supervisory process evaluates the relationship between the amount of capital held by the bank against the risk, strength and effectiveness of the bank’s risk management eventually guiding the bank and supervising its activities in order to improve the performance of the banks in the international business market and cross border finance. 2.3.2 Four Key Principles of the supervisory review The four key principles identified by the Basel II Accord on the supervisory process is listed below. These principles emphasise on the committee’s focus on supervision and its aim to maintain harmony in the international banking and cross border finance. Principle 1: Banks should have a process for assessing their overall capital adequacy in relation to their risk profile and a strategy for maintaining their capital levels. Principle 2:Supervisors should review and evaluate banks’ internal capital adequacy assessments and strategies, as well as their ability to monitor and ensure their compliance with regulatory capital ratios. Supervisors should take appropriate supervisory action if they are not satisfied with the result of this process. Principle 3: Supervisors should expect banks to operate above the minimum regulatory capital ratios and should have the ability to require banks to hold capital in excess of the minimum. Principle 4: Supervisors should seek to intervene at an early stage to prevent capital from falling below the minimum levels required to support the risk characteristics of a particular bank and should require rapid remedial action if capital is not maintained or restored. 2.3.3: Issues to be addressed There are two specific issues to be addressed by the Supervisory-Review Process. They are Interest Rate Risk in the Banking book: Since it is clear that the Basel Committee’s Basel II Accord Effects on Qatar Banking Basel II Accord Effects on Qatar Banking International banking is increasingly vital for every country in order to create an image for itself in the international finance market Chapter 1: Introduction International banking is increasingly vital for every country in order to create an image for itself in the international finance market. Alongside, the increase in globalisation and the upsurge in outsourcing by multinational companies in the west have created a lot of opportunities for growth in the Middle East and Far Eastern countries. This apparently requires a strong internationally stable financial organization to conduct transactions across the globe without any errors (i.e.) 100% accuracy.   This includes reliability and stability of the bank under extreme situations (like emergency for example), which is highly important to conduct international transactions. Also the potential to meet financial demands during crisis situations is a vital criterion that is considered while presenting themselves in the international market. In addition to the globalisation, outsourcing and export/import growth, there is also a tremendous growth in cross-border finance among the countries in the Middle East and Far East. Along with all these factors the developing nations in the Middle East face a mandatory requirement of a sable international banking system in order to attract foreign investment. The increase in cross border finance activity among the middle eastern countries is also a critical element to be considered for establishing a stable international bank within the nation in order to represent the country in the international finance market. The countries in the Middle East are actively participating in cross-border finance since the dawn of the 21st century. Being a producer of Oil which is a vital ingredient at all levels of life right from day-to-day driving up to power generation for the nation in order to run industries and serve domestic purposes, makes it critical for the nations in the Middle East to have a strong international banking system to conduct transactions across the globe accurately and effectively. Qatar is a growing nation in the Middle East with primary operations in oil and gas export as well increasing its potential in areas of development in technology focusing on IT and communication. The nation has efficient international operations and con ducts financial transactions between western nations as well as with eastern nations. Since the take over of the government by H.H. Sheikh Hamad Bin Khalifa in 1995, the country is making tremendous progress in deploying its hydrocarbon resources in order to penetrate in the international market and present itself as a financially stable nation in the international market. Further to the increase in the international operations by the countries in the Middle East and the Far East, the Bank for International Settlements developed a framework to co-ordinate the international financial operations as well as create a portfolio for the capital measurement and capital standards which every nation involving in international banking operations is expected to adopt in order to stabilise and put in order the international transactions between countries. The Basel II accord produced by Basel Committee on Banking Supervision aims at achieving International Convergence of Capital Measurement and Capital Standards. The arrangement aims to set a minimum standard to be met by its participating nations in order to achieve capital adequacy by the participating nations in the international market. This report aims at analysing the effects of Basel II accord on Qatar’s banking sector. The objectives of this report are stated below: To analyse the Basel II accord and it’s framework for measuring capital adequacy in the nations participating in the international banking transaction. To investigate the banking sector of Qatar and the effect of Basel II accord on its international operations and capital adequacy. To analyse the effect of Basel II accord on the nation’s two major banks having international operations in Qatar namely, Qatar Industrial Development Bank (QIDB) and Commercial Bank of Qatar (CBQ) and to analyse the impact of Basel II Accord on the Banking Sector of Qatar. Report Outline: The report comprises of the following chapters. Chapter 1: Introduction This chapter introduces the reader to the objectives of the report and presents a broad picture of the report to the reader. Chapter 2: Overview of Basel II Accord This chapter presents with an overview of the Basel II accord. The three pillars of Basel II accord namely Minimum Capital Requirements, Supervisory Review Process and Market Discipline are analysed in detail to provide the reader with a detailed understanding of the consent of Basel Committee on Banking Supervision. Chapter 3: Implications and Critical Analysis of Basel II Accord The literature review on the Basel II Accord in chapter 2 is followed by the critical analysis and its implications on nations (business and political) are presented to the reader before proceeding to present the overview of the Qatar Banking sector.    Chapter 4: Overview of Qatar and its Banking Sector This chapter presents the reader with an overview of Qatar as a nation and its business operations in the International market. Alongside, the chapter analyses the country’s growth in the banking sector and its internationally active banks. Chapter 5: Case Study This chapter conducts a case study analysis on Qatar’s two internationally active banks namely Qatar Industrial Development Bank (QIDB) and Commercial Bank of Qatar (CBQ). The effect of Basel II accord on the banks along with an overview of the bank is presented to the reader. The data used to present the case study is primarily obtained from secondary sources like journals, reports and white papers. This is apparently due the fact that the analysis is conducted on a foreign nation as well as the data available from the secondary sources are also reliable as they are published by legitimate organizations and popular journals.   Chapter 6: Results and Discussions The results of the case study analysis and discussions are carried out in this chapter. This chapter aims to present a clearer picture to the reader on the effects of the Basel II accord on the banks analysed. Chapter 7:   Conclusion and Recommendations The conclusions derived from the case results and discussions on the case study and the overall conclusion on the effect of Basel I accord on the Qatar Banking Sector is presented in this chapter. Alongside, this chapter presents a few constructive recommendations based on the results and discussion on the case study. Chapter 2: Overview of Basel II Accord This chapter begins with an overview of the Bank for International Settlements followed by a detailed analysis of the Basel II accord. The Basel II committee is also analysed alongside in order to provide a deeper insight to the readers. 2.1 Bank for International Settlements Overview and it’s Operations The Bank for International Settlements (Bank for International Settlements) is an international organization looking after international monetary and financial co-operation across the globe. This organization acts as the bank for all the central banks of countries participating in the international finance and banking. The Bank for International Settlements profile states that the bank achieves the aforementioned statement through acting as A forum to promote discussion and facilitate decision-making processes among central banks and within the international financial and supervisory community. A centre for economic and monetary research A prime counter party for central banks in their financial transactions and Agent or trustee in connection with international financial operations. Established in 17th Many 1930, it is the oldest financial organization at the international level. The Bank for International Settlements has three major decision making bodies within the bank to achieve its mission. They are The general meeting of member central banks This meeting is held before the end of four months of the end of the banks annual financial year. The meeting addresses all the issues related to business and the member central banks gather to approve the annual financial statement released by the bank. The Board of Directors The board of directors comprise the central bank governors elected from various participating countries. They monitor the overall operation of the bank and take responsibility for actions to be taken and address issues related to disputes and other major international financial cross border problems. The Management Committee The management committee is the first line representative of the Bank for International Settlements and addresses the day-to-day activities of the bank. This committee primarily manages the monetary and financial co-operation services. The services include Meetings: Apart from the Annual general meeting the Bank for International Settlements organizes meetings on a bimonthly basis. This meeting brings the member central banks together with the aim of monitoring the global economic and financial development and discusses issues on its policies in relation to the monetary and financial stability. Committees and Secretariats Bank for International Settlements has several committees to monitor specific problems and issues in the international finance and cross border loans. Alongside, several other committees and organizations focusing on international financial systems have their secretariats in the Bank for International Settlements and work closely with the bank in order to enhance the overall international banking and cross border finance. Basel committee of the Bank for International Settlements is the committee that laid the specifications for capital measurement and capital standard of the central banks participating in the international banking. Research and Statistics: In order to support its meetings and the activities of the organization’s Basel based committees the Bank for International Settlements carries out regular research on economic, monetary, financial and legal areas of the international banking and cross border finance. Investment services for central banks: Bank for International Settlements also provides security, liquidity and return for its central bank members. The three primary points with respect to this identified by the organization are: To provide security, the Bank has built up a sizeable equity capital and ample reserves. It pursues an investment strategy focused on combining diversification benefits with intensive credit and market risk analysis. To ensure liquidity, the Bank stands ready to repurchase its tradable instruments at little cost to its customers and thus respond quickly and flexibly to their needs. The BIS offers an attractive and competitive return on the funds deposited by central banks and international organisations The Bank for International Settlements focuses on serving the financial needs of central banks of the member countries. Alongside, it also acts as a banker managing the funds for numerous international financial institutions. 2.2: Basel committee Overview The Basel committee was established the member central banks of the Bank for International Settlements in order to create a standard for the international banking and capital framework for crass border finance and lending. The committee was initially set up in 1970 and meets regularly four times a year to discuss the progress in international banking and address issues related to business in this context. The member nations of the committee include Belgium, Canada, France, Germany, Italy, Japan, Luxembourg, the Netherlands, Spain, Sweden, Switzerland, United Kingdom and United States. The country’s central bank and financial institutions that are not active in banking commercially but monitor the financial operations of the nation both at national and international levels represent the nations. The committee does no possess any authority over its member nations banking systems and the decisions of the committee are never intended to have a legal force on its member nations. The Central bank governors of the Group ten countries endorse the committee’s major initiatives. Also the committee reports to the group ten countries central bank governors. The committee first proposed he capital measurement system in 1988 commonly referred to as ‘Basel Capital Accord’. The committee aims in supervising the international banking operations of the nations across the globe. The decisions of the committee endorsed by the group ten countries address various financial issues in the international market outside the groups as well. The major aim of the committee is the ‘close the gaps in international supervisory coverage’ and to ensure that no foreign banking systems escapes the supervision in order to establish a harmony among the member nations of the Bank for International Settlements as well as in the international market. The committee has promoted supervisory standards in the past few years. Some of its major milestones include the following 1997: Cover Principles for effective banking supervision 1999: Core Principles methodology The committee also presented the Basel II accord with revision on international capital framework. This aims to standardise the capital framework of every bank participating in the international banking as well as sets slabs for minimum capital holdings to be met by the banks in order to qualify for international operations. The committee has numerous subgroups to perform specific tasks of the committee in order to achieve the overall motto of the committee. They are listed below Accord Implementation Group Accounting Task Force Capital Group Capital Task Force Core Principles Liaison Group (with 16 non-G10 countries) Cross-Border Banking Group Electronic Banking Group Joint Forum (with IAIS and IOSCO) Joint IOSCO BCBS Working Group on Trading Book Research Task Force Risk Management Group Securitisation Group Transparency Group The next section provides a detailed analysis of the Basel II accord and its various implications on international banking is discussed in chapter 3. 2.3 The Basel II Accord The Basel II accord was released in June 2004 further to the release of the Basel Accord in 2003. The Basel II is a revised edition of the initial Basel capital accord. It is a framework designed to derive the capital holdings of internationally active banks to meet the international standards and sets a minimum level of capital holding which is a primary criteria for the banks. The Basel II framework is aimed to be applied on a consolidated basis over internationally active banks in order to preserve the integrity of capital in the banks with subsidiaries. Also the framework eliminates the double gearing through this approach. The Basel II accord’s framework is also applied on a fully consolidated basis on any parent holding company which acts as a parent entity within a banking group in order to capture the risk on a consolidated basis without missing any element that contributes considerably to the risk of the overall banking system. Alongside, the framework is also applicable to all internationally active banks at every tier of the banking group. Apart from the aforementioned statements one of the principal objectives of the Basel II Accord is to protect the interest of the depositors essentially to ensure that capital recognised capital adequacy measures is readily available for the depositors. Apparently, these measures are aimed to establish a common platform for international banking and cross border finance across the globe. The scope of application extends to the following segments of the international banking and finance entities. Banking, securities and other financial subsidiaries Significant minority investments in banking securities Insurance entities Significant investment in commercial entities. Deduction of investment pursuant to this part The aforementioned entities are obtained from the Basel Committee report on International Convergence of Capital Measurement and Capital Standards, published in June 2004. The Basel II accord overview is based on this report. The illustration in the fig 1 gives a clear picture of the overall scope of application of the Basel II accord. The Basel II accord is split into three pillars. The first Pillar: Minimum Capital Requirements The following subsections provide a detailed analysis on the elements shown in fig 2. 2.4: The First Pillar The First pillar lays down the minimum capital requirements that every internationally active bank should incorporate.   It is split into the following subsection. 2.4.1:   Calculation of Minimum capital requirements The minimum capital requirement is calculated as a measure of the capital ration. The capital ratio in turn is calculated using the regulatory capital and risk-weighted assets. The requirement of this criterion is that the capital ration must be a minimum of 8% or more in order to be eligible for the international activities. Also, in case of a two tier system the capital in tier 2 must not be greater than the tier 1 capital (i.e.) the tier 2 capital can be a maximum of 100% of the tier 1 capital. The capital is accounted from the following sources    Regulatory capital: The minimum accounting capital requirements for the financial institution encompasses the regulatory capital. The Basel II accord has withdrawn the provision to include general provisions in tire 2 capital, which was in effect in the 1988 Accord under the Internal Ratings-Based (IRB) approach.   Furthermore the accord has lain down that the banks using the Internal Ratings Based approach to their other assets mus t compare the amount of total eligible provision with the total expected losses amount to the bank. This eventually increases the capital holding of the bank in order to meet the criteria. Risk Weighted Assets: The Basel II Accord calculates the total risk-weighted assets by multiplying the capital requirement for market risk and operational risk by the reciprocal of the minimum capital ratio of 8% and adding the resulting value to the sum of risk weighted assets for credit risk. Even though this is subject to review the approach lays enormous burden on the bank to increase its minimum capital holdings. Apparently the Basel II Accord is aiming to establish that the internationally active banks must have enough capital to meet its short comings without depending on loans and cross border finance to address its immediate requirements and short comings. The idea though being novel is very intense for the banks to maintain the required minimum capital. 2.4.2: Credit Risk-The Standardised Approach Under this method the Basel committee provides the internationally active banks a choice for calculating their capital requirements for credit risk. The first approach is the standardised method of measuring the credit risk through support from external credit assessments. This method is approved by the Basel committee while the other method is yet to explicitly approved by the committee. Under the alternate method of calculating the credit risk, the bank supervisor can allow banks to use their internal rating systems for calculating the credit risk. Under both the methodologies one should not oversee the fact that the Basel committee is very keen in assessing the credit risk on the capital holdings of the internationally active banks. Even though this is appreciated, the rules are very stringent making it very difficult for the banks for adopt easily. 2.4.3 Credit Risk- Internal Ratings Based Approach The Basel II committee has given supervisory approval for banks to use the Internal Ratings-Based approach to determine their capital requirement for a given exposure subject to certain minimum conditions and disclosure requirements. The risk components considered include Measures of the probability of default (PD), Loss given default (LGD), The exposure at default (EAD), Effective maturity (M) The Basel II accord states that â€Å"The Internal Ratings Based Approach is based on the measure of unexpected loses (UL) and Expected Loses (EL). Under the Internal Ratings Based Approach, the committee expects the bank to categories their exposures in order to identify the different underlying risk characteristics. The categories include corporate, sovereign, bank, retail and equity. These are identified as the corporate asset classes and the approach further expects the bank to identify the subclasses associated with the asset classes in order to measure the credit risk associated with the exposure. The detailed analysis of every corporate class and its associated subclasses is beyond the scope of this report. In essence the Internal Ratings Based Approach gives the bank more liberty to calculate its credit-risk on the minimum capital requirement for a given exposure. But the producers laid by the Basel II Accord is very tedious to adopt and implement for every corporate class exposure and identifying the subclasses associated. 2.4.4: Credit Risk- Securitisation Framework The Basel Committee in its revised accord, has made it mandatory for the banks to apply the Securitisation Framework for determining regulatory capital requirements on exposure arising from traditional and synthetic Securitisation or similar structures that contain features common to both.   The Basel II accord also states that the capital treatment of the Securitisation exposure must be determined on the basis of the economic substance rather than the legal form of the structure. It is apparent that the securities can be structured in many different ways and the committee has approved the use of either the traditional Securitisation or the synthetic Securitisation framework. Also the Basel II accord expects the supervisor to look at the economic substance of transaction in order to determine whether it should be subject to Securitisation framework or not. This gives the discretionary power to the supervisor to decide on a specific transaction whether to include it in the framework or to eliminate it from the framework towards determining the regulatory capital framework. The traditional Securitisation and the synthetic Securitisation framework are discussed below. Traditional Securitisation: The Basel II Accord defines the traditional framework as â€Å"a structure where the cash flow from an underlying pool of exposures is used to service at least two different stratified risk positions or tranches reflecting different degrees of credit risk†. The advantage with this approach is that the payment to the investors is based on the performance of the specified underlying exposures rather than a derivation from an obligation of the entity originating those exposures. Synthetic Securitisation â€Å"A synthetic Securitisation is a structure with at least two different stratified risk positions or tranches that reflect different degrees of credit risk where credit risk of an underlying pool of exposures is transferred, in whole or in part, through the use of funded (e.g. credit-linked notes) or un-funded (e.g. credit default swaps) credit derivatives or guarantees that serve to hedge the credit risk of the portfolio†. This approach leaves the return to the investors in the hands of the performance of the underlying pool. Apparently, the risk associated is higher since the performance can be affected by numerous causes. From the above-mentioned approaches the Basel II accord’s stand for evaluating the capital and minimum capital requirements are evident. 2.4.5: Operational Risk The operational risk is defined by the Basel Committee as the risk associated with the loss resulting from inadequate or failed internal processes, people, systems or external events. This includes the legal risk with the exclusion of strategic and reputational risk. The Basel II Accord has approved three methods for calculating the operational risk and risk sensitivity with the implications on minimum capital requirements. They are: (i) The Basic indicator approach, (ii) the Standardised Approach and (iii) Advanced Measurement Approach. Basic Indicator Approach: In this case the banks should hold capital for the operational risk equal to the average over the past three years of a fixed percentage. This is expressed as a formula below KBIA = [ÃŽ £ (GI1†¦n x ÃŽ ±)] Where KBIA = the capital charge under the Basic Indicator Approach GI = annual gross income, where positive, over the previous three years n = number of the previous three years for which gross income is positive ÃŽ ± = 15%, which is set by the Committee, relating the industry wide level of required capital to the industry wide level of the indicator. This formula is obtained from the Basel II accord for the purpose of reader understanding. Standardised Approach: The standardised approach divides the bank’s activities into eight-business lines namely corporate finance, trading sales, retail banking, commercial banking, payment settlement, agency services, asset management, and retail brokerage. The likelihood of operational risk exposure is calculated from the gross income associated with each business line that serves as an indicator for the scale of business operations by the bank in that specific area of business or business line. This approach is very clumsy since the gross income associated with the business line varies due to numerous reasons both internal and external. Advanced Measurement Approach: The Advanced Measurement Approach equates the regulatory capital requirement with the risk measure generated by the bank’s internal operational risk measurement system using quantitative and qualitative criteria. The banks can use this method only after the approval by the Committee. The Basel II Accord sets the approach for the banks based on their international activity and significant operational risk exposures. Also, when a bank agrees to use a more sophisticated method, it cannot revert back to the easier method without approval from the supervisor. This eventually increases the burden on the banks to choose a sophisticated method. 2.4.6: Trading Book Issues The final segment of the first pillar is the trading book. Basel Committee defines the trading book as a container of both the financial instruments and commodities held either with trading intent or in order to hedge other elements of the trading book. The trading book forms a vital element for the bank since it is the record of the bank’s financial instruments as well as commodities. The Basel II Accord identifies four key principles for the supervisory process. They are listed below. The basic requirements for the eligibility to trading book capital treatment put forth by the Basel II Accord are as follows Clearly documented trading strategy for the position/instrument or portfolios, approved by senior management (which would include expected holding horizon). Clearly defined policies and procedures for the active management of the position Clearly defined policy and procedures to monitor the positions against the bank’s trading strategy including the monitoring of turnover and stale positions in the bank’s trading book 2.3: The Second Pillar- Supervisory Review Process Basel committee was initially set up for the supervising the internationally active banks and produce a common platform for the smooth transactions and cross border finance. The Basel II Accord has established Supervisory Process as one of the three pillars in order to emphasise its stand on supervisory process. The importance of supervisory process is described below. 2.3.1: Importance of Supervisory Process The supervisory review process of the Basel II Accord aims not only to ensure that banks have adequate capital to support all the risks in their business but also intends to encourage the banks to develop and use better risk management techniques in monitoring and managing risks. Alongside, the supervisory process by developing internal capital assessment process and setting capital targets that are commensurate with the bank’s risk profile recognises the importance for bank management in order to improve the atmosphere in the international banking and cross border finance. The Supervisory process evaluates the relationship between the amount of capital held by the bank against the risk, strength and effectiveness of the bank’s risk management eventually guiding the bank and supervising its activities in order to improve the performance of the banks in the international business market and cross border finance. 2.3.2 Four Key Principles of the supervisory review The four key principles identified by the Basel II Accord on the supervisory process is listed below. These principles emphasise on the committee’s focus on supervision and its aim to maintain harmony in the international banking and cross border finance. Principle 1: Banks should have a process for assessing their overall capital adequacy in relation to their risk profile and a strategy for maintaining their capital levels. Principle 2:Supervisors should review and evaluate banks’ internal capital adequacy assessments and strategies, as well as their ability to monitor and ensure their compliance with regulatory capital ratios. Supervisors should take appropriate supervisory action if they are not satisfied with the result of this process. Principle 3: Supervisors should expect banks to operate above the minimum regulatory capital ratios and should have the ability to require banks to hold capital in excess of the minimum. Principle 4: Supervisors should seek to intervene at an early stage to prevent capital from falling below the minimum levels required to support the risk characteristics of a particular bank and should require rapid remedial action if capital is not maintained or restored. 2.3.3: Issues to be addressed There are two specific issues to be addressed by the Supervisory-Review Process. They are Interest Rate Risk in the Banking book: Since it is clear that the Basel Committee’s

Potassium :: essays research papers fc

Potassium   Ã‚  Ã‚  Ã‚  Ã‚  Potassium is a vital element in the human body. Potassium had never been distinguished between sodium until the eighteenth century. Before potassium was recognized as an element, potassium carbonate was mixed with animal fat to make soap. It was discovered by Sir Humphrey Davy in England, in 1807. Sir Davy was able to isolate potassium using electrolysis. Potassium was the first metal isolated by this procedure. Today, it is still not found free in nature. It is obtained by electrolysis of chloride or hydroxide.   Ã‚  Ã‚  Ã‚  Ã‚  Potassium is a solid silvery white element. It is soft and can be cut with a knife. Potassium is the least dense known metal, besides lithium. It is the seventh most abundant element. It makes up about 1.5% by weight of the earth's crust. It decomposes in water because of the hydrogen. It usually catches fire during reaction with water.   Ã‚  Ã‚  Ã‚  Ã‚  Potassium is an essential component for plant growth. Potassium is absorbed by plants in larger amounts than most other mineral elements. Potassium is supplied to plants by soil minerals, organic materials, and inorganic fertilizer. Potassium is not found in organic combination with plant tissues. Potassium plays an essential role in the metabolic processes of plants. Potassium also is essential in carbohydrate metabolism, a process by which energy is obtained from sugar.   Ã‚  Ã‚  Ã‚  Ã‚  Potassium is one of the most important elements in human diet. To begin with, potassium works with sodium for various reasons. For example, it helps to regulate body waste, control heart rhythms, and assist in reducing high blood pressure. It also aids in clear thinking by sending oxygen to the brain. This element is crucial to the maintenance of the nervous system and the muscular system. Potassium is an electrolyte, and therefor regulates the balance of fluids inside and outside the cells, including blood.   Ã‚  Ã‚  Ã‚  Ã‚  The human body needs potassium to function. The body may become short of potassium in many situations. Excessive physical activity, severe cases of stress, drinking of alcohol or coffee all consume the potassium in the body leaving the person with a deficiency of the mineral. As a result of this deficiency severe fatigues, muscle weakness, nervous disorders, cardiac arrest, and poor reflexes can occur. Too much potassium in the body may result in dehydration. The kidneys can retain or get rid of too much potassium. Either extreme is dangerous for the body.   Ã‚  Ã‚  Ã‚  Ã‚  If potassium is such a vital nutrient to the human body it has to be a mineral that can be found in a regular diet.

Turf Grass Industries

The field of turfgrass science, and golf course management has became very sophisticated in just the few short years that I have been involved. Much of the equipment has gone higher tech, as far as electric motors, and more computerized technology. Many golf course superintendents now are , â€Å"online via the web†. If there is a question concerning a new disease or fertilizer one can log on to Texas [email  protected] home page and hopefully find a solution to the problem. The technology in the computer field has also advanced the irrigation technology in the agriculture field. Irrigation systems can now be turned on with the touch of a button through IBM or MACINTOSH Personal computer. New computer technology will continue to make leaps and bounds for the turfgrass industry. Ransome Industries, maker of fine turgrass mowing equipment, has come out with the first electric mowing machine. I myself am not in favor of this, or I would guess anyone in the petroleum industry is either for that matter. There has been a greater demand for environmental concern along the nations coastlines, and nation wide. Most of the worlds great golf courses are located along the coasts. Ransome was banking on that an electric mowing machine would fit that need. It has been slow to catch on as of late. It†s benefits are an almost quiet no noise machine. (Beard 302). Many country club members would become outraged when the superintendents would send out the greensmowers daily at 6:00 A. M. The diesel and gasoline powered engines are noisy, and would wake up many members that live along the golf course. The second benefit is no cost of gasoline or oil, and therefore no chance of a petroleum leak or spill. There downfall lies in there initial cost,†$15,000 for a gasoline triplex mower, and $20,000 for an electric powered mower. Another real downfall is that they can only mow nine holes, then they have to be charged for ten hours, rendering them useless for the rest of the day. Hopefully technology can produce an environmental friendly machine, while not putting the oil industry in a bind, † And also keep the governments hands out of the cookie jar with new environmental taxes†!!!!!! The Internet has become a very important tool to the people in the turfgrass industry. At any given time a golf course superintendent can log onto various company†s home pages to learn something about their product. If one day I am searching for a new fairway mower, I can bypass the phone calls and written estimates, and go strait to the information. Toro, Ransome, Jacobsen, and even John Deere all have home pages. You can inquire on a certain mower model, engine size or anything you need to know. It will list a price and even the shipping and handling and the salesman†s commission. Perhaps the best part about the Internet, is all the turfgrass related information that is at your fingertips. (Beard 120) One can access the three dominating turfgrass schools in just seconds. Those three schools would be Texas [email  protected], Mississippi State, and Oklahoma State. If it is in the middle of the summer, and there is a big tournament coming up they can be of great help. If your putting greens start to die in spots in the heat of the summer, one could log on to Texas [email  protected] home page, and root around for some information, on what type of disease might be causing it. (Beard 420) They give identifying characteristics for each disease that is helpful in a quick diagnoses of the problem. They even offer helpful tips on what chemicals will best control the problem, and how much to spray. If that†s not enough they give tips on employee management, and possible job opportunities with the college. How can the Internet and computer technology possibly make my future job any easier, I might ask. Well that is an easy question to answer. Toro, Rainbird, and Flowtronics PSI, have found a way to make water management an easy task. Automatic water irrigation systems have been around since the early seventy†s. First they were run off a mechanical pin and timer system for home lawn use. This was a very reliable system, but it lacked flexibility. (Wikshire95) Next came the automatic timer systems. These run off an electronic timer from a 110 volt wall outlet. These are still in use today, and it is a very good system. (Wikshire 112) Last but not least has come the water management system run from your personal Macintosh or IBM compatible computer. The personal computer actually works as the brain for the irrigation system. (Wikshire200) You down load the program into the computer, and bam it does all the work for you. It has a water sensor located outside that tells the system to shut off if it has rained to much, or to come on if it is getting extremely dry on a hot summer day. It also can measure the amount of nitrogen, phosphorous, and potassium in the soil, if necessary. It will test the water, and tell you the amount of salt or nitrates located in the water. Once a watering program is started it is also easily changed to another program if so desired. (Wikshire202) This has benefited the turfgrass industry in many ways. It has saved superintendents from having to come and shut the irrigation off in the middle of the night if it starts raining hard. Most importantly it has saved money in the labor part of the budget. It keeps hourly employees occupied with other tasks, other than having to turn on individual sprinkler heads every day. The most popular program by far is the Rainbird Vari-Time V and VI programs. (Wikshire250) These two programs are leaps and bounds above the rest. Having knowledge of computers and computer related programs will be very beneficial to me in the turfgrass industry. The technology will benefit me and others. From new high tech electric mowing machines, to non hydraulic mowers. The Internet could be the most useful tool for me in my job. It will give me useful knowledge on what is going on in the world. Also it could help save me from a costly mistake when it comes to disease control that could cost me my job. The computer industry has also made great accomplishments when it comes to water conservation management. These programs can be downloaded into your personal computer. They are great labor savers, and most of all effective time management tools. I hope that the technology will keep advancing, and make my future job as a golf course superintendent much easier.

buy custom Preschool Quality and Child Development essay

buy custom Preschool Quality and Child Development essay Children have been proved to be the fastest learners, especially when at an impressionable age (between 2-6 years). This is the time when most of them attend pre-school. The quality of the pre-school and the experiences gained there are believed to affect the development of children. This development encompasses several areas such as social, literacy, cognitive, communicative development and many more such areas. The social and physical environments of schools are said to influence the positive (or negative) development of children. This is where the term Global Quality comes into play. Global Quality refers to quality that is most likely to support the positive development of children (Cunningham, 2009, p.501). Studies were conducted to investigate the extent to which the quality of pre-school classrooms (social and physical) affected academic, language and literacy skills; and also how they moderated associations between child risk and development. The articles Relating Preschool Q uality to Children's Literacy Development and Quality of Social and Physical Environments in Preschools and Children's Development of Academic, Language, and Literacy Skills have been instrumental in guiding the thought process that let to my individual study. From my observation of the classroom dynamics of about 30 children from two schools, it can be concluded that quality pre-education is important to the development of children and does leave an impact on the kind of behaviour they adopt in later years. Global Quality The study discussed in Relating Preschool Quality to Children's Literacy Development to explore the relationship between literacy environment quality and public preschool children literacy environment quality variability on the literacy development of preschool children was performed on 428 children belonging to 24 different classrooms in a large urban, Midwestern school district. The cultural and economical diversity of the districts student population was well represented by 74% of the sample being African-American children and 80% of the sample being eligible for free meals. (Cunningham, 2009) Measures of Quality The three sources used for data collection for this study were a student assessment referred to as the Teacher Rating of Oral Language and Literacy (TROLL) and two observation surveys; the Early Childhood Environment Rating Scale Revised (ECERS-R) and the Early Language and Literacy Classroom Observation (ELLCO). The TROLL is used to assess important literacy skills like language, reading and writing. The ECERS-R is used to assess the global quality of classrooms with regard to Space and Furnishings, Personal Care Routine, Language/Reasoning, Activities, Interaction, Program Structure Parents and Staff. The ELLCO toolkit is used to assess the quality of the literacy environments with the help of three tools that help determine the extent to which literacy development is supported, they are a Literacy Environment Checklist, a Classroom Observation and a Literacy Activities Rating Scale. However, only the Classroom Observation has been used in the research study conducted.(Cunningh am,2009) Results The ECERS-R yielded a mean score of 212 which indicates mediocre global quality. The ELLCO yielded a mean score of 44.4 which indicates basic literacy environment quality. The TROLL test was conducted on two sets of students students who were eligible for free meals (students at risk) and students who paid in full for their meals (students not at risk). The students at risk had a mean TROLL score of 71.53 (below the 50th percentile) and the students not at risk had a mean TROLL score of 8.44. The t-tests revealed a significant difference between the scores of students with and without risk factors. It has been concluded that influences from a low income background have a negative impact on literacy development and vice versa. (Cunningham, 2009) Conclusion Overall, the global quality of preschools in the Midwestern school district is considered to be mediocre as they provide only basic support for literacy development. The author of the paper suggests that literacy development can be improved by improving the quality of classrooms and Based on all three results it has been found that the literacy development of children can be improved by improving the quality of the literacy environment, involving parents in the learning process, including indoor and outdoor activities and improving relationships between parents, teachers and students. A student at risk who reaps the benefits of the above mentioned suggestions can have successful high school years. Structural and Process Quality Just as the global quality of the preschools affects the literacy development in students, the quality of social and physical environments affects the academic, language and literacy skills of students. Studies show that students at risk may benefit more from a socially and physically strong preschool environment than their peers who are not at social/economic risk. Academic, language and literacy skills are measured along structural quality and process quality. Features that contribute to the structural quality of a preschool include teachers levels of education, type of training, class size, type of curriculum and program services. Process quality is more experience orientated and relates to the features of preschool programs that children experience directly. These include implementation of activities and lessons, nature of reactions between adults and children and children and peers, quality of space and furnishings, abundance of learning materials and many more similar factors. The paper Relating Preschool Quality to Children's Literacy Development discusses the methods used to evaluate the structural and process quality and the results of the study performed on a sample of students. According to Mashburn, the objectives of this study were to verify the relationship between quality of social and physical environments in preschools and corresponding academic, language and literacy skills in students. Mashburn also mentions the level to which these factors of quality limit the relationship between child risk and development. This study has a continuous variable called quality. Various studies of the relationship between quality and development have observed effects of quality on child characteristics such as sex, ethnicity, home and family risk factors. Sample The study was conducted on 126 preschool classes. These included 69 Georgia Pre-K classes, 27 Head Start Classes and 30 private pre-school classes. Five students from each of these classes were selected on a random basis based on the criteria established by the investigator. Data collection for the research was divided into three phases. The first phase lasted two months and involved raters assessing academic, language and literacy skills. The second phase which lasted a month involved raters making systematic observations of process quality. The third phase which also was of one month duration included language, literacy and academic assessments. (Mashburn, 2008, p.116) Measures of Quality Preschool quality was measured mainly using three observational methods the ECERS-R, the Assessment Profile and the Caregiver Interaction Scale. Direct Assessment was used as an additional instrument used to gather information about students academic, language and literacy skills. The test used for the Direct Assessment was the Woodcock Johnson-III test of achievement. It consisted of two subtests namely Letter Word Identification and Applied Problems. As the names suggest, Letter Word Identification refers to the identification of letters and words and Applied Problems refers to basic math skills such as counting numbers and problem solving. The Peabody Picture Vocabulary Test IIII and the Expressive Language sub-test of the oral and written language were used to measure language skills. A store and print concept instrument was used to measure literacy skills. (Mashburn, 2008) Results The variables measured in this research were gender, race, family income, process quality and corresponding children development. The results of the study showed that (1) Pre-school quality has a positive relationship with childrens development during the early years of schooling (2) High quality social environments and child development have a significant relationship (3) There is no association between higher quality physical resources and childrens competencies. (Mashburn, 2008) Conclusion It can be concluded from the two studies that global, structural and process qualities have a significant impact on the development of children. High quality preschool definitely lays the strong foundation for the later years of education. Students at risk who are put in such an environment benefit more from the nature of the program than students who are used to such high quality environments. Observation Evaluation To validate the points mentioned in the above papers and observe classes in a real life scenario I performed an ECERS-R observation evaluation. The evaluation was performed on 21 students of the Lincoln School and 10 students of the Early Learning Program and was focused on three scales, Language-Reasoning, Activities, and Interaction. Language Reasoning consists of four subscales: Books and pictures, Encouraging children to communicate, Using language to develop reasoning skills, and Informal Use of language. Lincoln School At the Lincoln School, all four subscales of Language Reasoning met the requirements. The classroom had a book corner and a story reading session; also the classes had pictures all over it at the right height for children to view effortlessly. The teacher(s) observed the communication levels of students in the class and encouraged shy, silent students to get over their shyness and start communicating. To facilitate the usage of language to develop reasoning the teacher(s) made use of games like Bingo that help reinforce their knowledge of numbers and vocabulary. The informal use of language was encouraged through casual conversations with the students. The school also conducted several interesting activities for the children such as dressing up as characters, playing with sand, creating 3D Art, familiarizing the students with numbers and weather, singing and dancing, playing with blocks, reading books or seeing pictures in books related to science and nature. These activities were al rated as per the ECERS-R. The only activities that did not seem structurally fulfilling were the Sand/Water and Nature/Science activities, because there was no outdoor area designated for water related activities and apart from books and pictures there were no Science/Nature related activities. The differences in the observations and rating could also be affected by the number of students in each sample and the corresponding number of teachers or assistants available to handle the classes. However both schools demonstrated good structural and process quality. The schools got off to a good start on providing global quality in their classes. However there is always scope for improvement. It was observed that the Early Learning Program provided a learning environment that was more active and involved more interaction. As a result the students demonstrated more creativity, willingness to try new things and an active picture overall. This supports our earlier conclusion of global, structural and process qualities laying a strong foundation for child development. Buy custom Preschool Quality and Child Development essay