The Theme Of Masculinity In The Short Happy Life Of Ernest...

How can Hemingway make the themes in the books based on his experiences and thoughts? Hemingway writes the books based on his experiences and thoughts like masculinity from a character to showing his self-confidence, death from alcohol which is showing the self-injury, fatalistic heroism like the character, Schatz from the book, A Day’s Wait and nature from mountain and safari (Africa) in The Snows of Kilimanjaro and The Short Happy Life of Francis Macomber or other books. Hemingway puts the meaningful themes and symbols through his experience and thoughts. There are major important themes in Hemingway’s books. First, men and masculinity is a main theme that comes from Hemingway’s experiences. Hemingway’s heroes are often outdoorsmen or†¦show more content†¦In this research paper, I am going to show the various aspects of the theme of death in the short story. Before the short story begins, Hemingway simply tells the story of a leopard’s skeleton that is said to lie at a high altitude on the slope of Mount Kilimanjaro. It is up to the reader to decide how to relate this tale to the rest of the short story, but it is obvious at this point that death will play an important role in the story. The main storyline develops around the deadly infection of Harry’s leg after suffering from a thorn scratch. He talks about death in the very first sentence of the short story, saying â€Å"The marvelous thing is that it’s painless, that’s how you know when it starts† (Hemingway 4). As t he story develops, Harry frequently mentions his wish to die or thee way he feels that death is very close now: â€Å"You can shoot me. You’re a good shot now† (Hemingway 4). and â€Å"I don’t want to move, there is no sense in moving now except to make it easier for you† (Hemingway 8) and â€Å"Can’t you let a man die as comfortably as he can without calling him names?† (Hemingway 8) and â€Å"Don’t be silly. I’m dying now† (Hemingway 8). It sounds as if Harry is giving up, not necessarily because he is a coward, even though his wife calls him that, but more because he feels that it is more comfortable for him at this point to lay down and die instead of waiting for a truck or airplane that will probably never arrive: â€Å"IShow MoreRelated Ernest Hemingway’s Portrayal of Masculinity Essay1169 Words   |  5 PagesErnest Hemingway’s Portrayal of Masculinity When thinking of masculinity in literature, one author has who has become synonymous with manliness comes to mind, Ernest Hemingway. Critics have spent countless hours studying his writing in order to gain insight into his world of manly delights, including his views on sex, war, and sport. His views can be seen through his characters, his themes and even his style of writing. The characters in Hemingway’s stories reveal much about how he feelsRead MoreExamples Of Masculinity In The Sun Also Rises By Ernest Hemingway1204 Words   |  5 PagesMasculinity has become a vague term, but when people think of the word they think of the qualities generally associated with men. Well so did Ernest Hemingway back in 1962 when he wrote The Sun Also Rises. Ernest Hemingway was an amazing writer and he was one of the people who believed that guys should be masculine and girls should be feminine. His novel The Sun Also rises is a good example of this. In The Sun Also Rises, Ernest Hemingway shows us what he thought the definition of masculinity wasRead MoreHemingways Portrayal of Masculinity1105 Words   |  5 PagesHemingway’s Portrayal of Masculinity When thinking of masculinity in literature, one author has who has become synonymous with manliness comes to mind, Ernest Hemingway. Critics have spent countless hours studying his writing in order to gain insight into his world of manly delights, including his views on sex, war, and sport. His views can be seen through his characters, his themes and even his style of writing. The characters in Hemingway’s stories reveal much about how he feels about menRead MoreThe Short Happy Life of Francis Macomber by Ernest Hemingway Essay1229 Words   |  5 PagesThe Short Happy Life of Francis Macomber by Ernest Hemingway Death is not the biggest fear we have; our biggest fear is taking the risk to be alive. Yet death is something that is inevitable, and for some shortcoming. In Ernest Hemingways The Short Happy Life of Francis Macomber, Francis Macomber deals with the humiliation of being a coward and the constant battle for a little boy to come of age. Hemingway explores the theme of death through metaphors and influential symbols, ironicallyRead MoreLife And Death By Ernest Hemingway Essay1231 Words   |  5 PagesTwo short stories and one segment from a story that I have broke down have all been composed by the creator Ernest Hemingway, concentrating on the subject of Life and Death. Ernest Hemingway is a twentieth century American author, short story essayist and columnist. He was conceived on July 21st 1954 in Oak Park, Illinois. In the midst of his lifetime he was incorporated into World War I. He went to Italy to drive a crisis vehicle in the warzone. His relationship in the World War proba bly left aRead MoreGender Roles In The Great Gatsby And The Sun Also Rises1657 Words   |  7 Pagescommon concepts that helps further the plot, also known as a theme. When reading all the literary works In all the literary works assigned to us in class, each having a different author, expresses a common theme.The authors force us to examine the limitation of conventional gender roles and how they express this in each story. The literary works that specifically include this theme of gender roles are,The Sun also Rises by Ernest Hemingway , The Great Gatsby by F.Scott Fitzgerald and Their Eyes WereRead More`` Hills Like White Elephants `` By Ernest Hemingway And The Masque Of The Red Death1643 Words   |  7 Pagesinstance, most people who are selfishness tend to face many obstacles that life throws at them, some of which causes problems that can seem almost impossible to overcome. Many believe that just because a conflict can not be resolved sometimes they think that the best solu tion for them is by escaping them. However, running away from difficult situations is never the answer. In â€Å"Hills Like White Elephants† by Ernest Hemingway and â€Å"The Masque of the Red Death† by Edgar Allan Poe the character AmericanRead MoreIn Our Time Critical Analysis1578 Words   |  7 PagesPsychological Development in Ernest Hemingways In Our Time In Hemingways collection of short stories, In Our Time, we follow a character by the name of Nick Adams. We are introduced to Nick in Indian Camp as a young boy, and follow him to adulthood in both Parts I and II of Big Two-Hearted River. Through this we see Nick develop and learn about some major facts of life. Nick is a character who is changes through the effects of war on many different levels. Although Hemingway hardly mentions theRead More Nick’s Psychological Development in Ernest Hemingway’s In Our Time1556 Words   |  7 PagesPsychological Development in Ernest Hemingway’s In Our Time   Ã‚  Ã‚  Ã‚  Ã‚  In Hemingway’s collection of short stories, In Our Time, we follow a character by the name of Nick Adams. We are introduced to Nick in â€Å"Indian Camp† as a young boy, and follow him to adulthood in both Parts I and II of â€Å"Big Two-Hearted River†. Through this we see Nick develop and learn about some major facts of life. Nick is a character who changes through the effects of war on many different levels. Although Hemingway hardly mentions theRead MoreA Farewell Of Arms By Ernest Hemingway2089 Words   |  9 Pagesthe characters and Hemingway’s life. One of the reoccurring themes throughout this book is, the individual who carries no feelings towards anything will never lose it, but once that individual catches emotion towards it it will be taken away. Hemingway incorporates this theme within his writing through Frederick and Catherine’s relationship, Fredericks feelings towards the war, and Catherine’s relationship towards her fiancà © and her new born baby. As an author, Hemingway was categorized as part of the

Distinguishing Between Bad and Evil - 1000 Words

Distinguishing Between Bad and Evil John Milton’s works Paradise Lost, Paradise Regained and A Masque Presented at Ludlow Castle all have antagonists that are Milton’s representations of evil. However, when closely examining Satan in Paradise Lost to Paradise Regained it is easily recognizable that Satan’s character has taken a remarkable shift in that he no longer questions his immoral actions just like Comus never questions his actions in A Masque Presented at Ludlow Castle. This close examination brings about the question what’s the difference between being an evil being and a person with bad character? This essay will evaluate how Satan in Paradise Lost is just a bad character whereas Satan in Paradise Regained and Comus are evil†¦show more content†¦Milton creates Satan’s character in this way in order to tempt and test his reader by appealing to the reader’s sinful side. His constant manipulation of the reader and the characters within the text does not necessari ly make him evil it just reflects poor judgment and bad character. In Paradise Regained Satan no longer possesses the same conflicting dualities of good and bad; instead his character illustrates a malevolent being. Satan no longer questions or reacts with conflicting feelings towards his demonic actions and sentiments as he did in Paradise Lost. His character is completely detached from the purity that was once within him and commits atrocities without remorse or question. It is evident in Paradise Regained that Milton has completely reconstructed Satan in such a malicious manner that there leaves no room for question whether Satan is a bad or evil. Satan is presented as nothing other than pure evil. His speeches are no longer alluring and infectious instead they reek with toxic flow. He is no longer apologetic for his rebellion and his respect for the position on God represented in Book 1 of Paradise Regained has diminished: Yet to that hideous place not so confined By rigour unconniving, but that oft Leaving my dolorous prison I enjoy Large liberty to round this globe of earth, Or range in the air, nor from the heaven of heavens Hath heShow MoreRelatedEssay on Comparing The Good And The Les619 Words   |  3 Pages Barbara Harrison once said, â€Å"The toughest choices in life are not those between good and evil, but those between the good and the lesser good.† She makes a good point given that those are the only types of choices that we must make. Sadly, there is a third type of decision that we fear the most, the decisions between the bad and the lesser bad. Distinguishing the lesser of two evils is far more difficult than identifying the greater of two goods. nbsp;nbsp;nbsp;nbsp;nbsp;Many times we areRead MoreSummary of Evil and Atheism This essay is a summary of William L. Rowes paper The Problem of Evil and Some Varaties of Atheism.1206 Words   |  4 PagesIn William L. Rowe s paper The Problem of Evil and Some Varieties of Atheism he sets out to accomplish two main goals. The first goal is directed toward theists, while the second attempts to reach the very wellspring of an atheist s heart. Foremost, Rowe sets out to show that there is an argument for atheism based on the existence of evil that may rationally justify someone in being an atheist (335). After he has effectively addressed this first issue he moves on to try and convince the atheistRead MoreMorals and Ethics1023 Words   |  5 Pagesexternal factor, while morals can be derived from the individual and is an internal factor. Ethics can be linked back to the Greek word â€Å"ethos† (Diffen, 2016) meaning â€Å"character†. And according to Merriam-Webster the full definition of ethos â€Å"The distinguishing character, sentiment, moral nature, or guiding beliefs of a person, group or institution†. (Merriam-Webster, 2016) Ethical behavior can be motivated by self-interest, or some intuitive sense of right and wrong and this can stem from our socialRead MoreFriendship in Sula Essay865 Words   |  4 Pagesperfect example of this, is Sula and Nel, best friends from Toni Morrisons novel, Sula, where the conventional ideas of good and evil are turned upside down. The two girls are like opposite sides of a magnet, strongly attracted toward one another and useless when split apart. Life puts their friendship to the test by toying with love and sex, life and death, and good and evil, eventually breaking the strong bond of their friendship apart. Sula and Nels friendship can be thought of as a magnet, Read MoreZombie Culture : The Dark Sides Of American Culture960 Words   |  4 PagesADHD, and other disorders may influence a person even more to act on violent impulses after watching violent television according to Browne, as well (705). Some people that are against violent media think that having easy access to television is a bad thing. According to Jeff Robbins, a television in a home, â€Å"is a fixture, dominating rooms with its physical presence and dominating family life with its visual and aural presence† (119). To summarize what Jeff Robbins said, families don’t causally watchRead MoreThe Dark Knight and Defining Evil Essay1727 Words   |  7 PagesBased on the excerpt from Evil: A Primer, William Hart goes through a painstaking process in trying to pin down the definition of evil. â€Å"Despite five thousand years of recorded human wrong doing, despite all that out prophets and scholars and poets and undead homicidal maniacs have told us, the origin and definition of evil remain impossible to pin down† (Hart 2). Hart tries to define evil and in the end he is able to boil the root of evil to a lengthy list of criteria and an empty definition.Read MoreAnalysis of Shirley Jacksons The Lottery Essay776 Words   |  4 Pagesunchallenging attitude that allows the practice to continue. He repeatedly condemns those members of other community that have abandoned the lottery as â€Å"young fools†. He believes that their lack of respect for this traditional practice will surely bring bad fortune to their lives. Mr. Warren reveals the ritual’s practical purpose when he states, Lottery in June, corn be heavy soon. Though the lottery is a tradition in the town, the people seem to have slowly lost sight of its purpose over the yearsRead MoreThe Natural Law Approach to Ethics Essay1344 Words   |  6 Pagestheir origins we believe these rules we expect them to continue to apply to objects in the world in the future as they have done in the past. Some people believe that the same can be applied to morality. They believe that good and evil, right and wrong, all follow a Natural Law which we can discover through our observations and our reason, they also believe that morality works in the same way for every nationality and at every time in history. Natural Law can be seenRead MoreThe Existential Choice : Soren Kierkegaard1368 Words   |  6 Pagesto take responsibility for their actions and go beyond their â€Å"socially imposed identities† (Stanford Encyclopedia of Philosophy). According to his earliest major work â€Å"Either/Or,† he suggests humans are reluctantly stuck between two spheres of life that they must choose between: aesthetic or ethical. He delves into what constitutes a life as either and suggests the practicalities associated with each choice. He stresses the importance of being responsible for the truth and living according to theRead MoreThe Philosophical Conflict between Freedom and Authority1286 Words   |  5 Pagesï » ¿FREEDOM VERSUS AUTHORITY Introduction One of the most fundamental philosophical conundrums in the relationship between individual human beings and society is the inherent conceptual conflict between the autonomy of the individual and the authority of the state. Absolute freedom of the individual precludes any exercise of state authority; but some degree of state authority is necessary to ensure and protect the autonomous rights of individuals from being infringed upon by the exercise of the

Restaurant Of Punjabi By Nature Samples †MyAssignmenthelp.com

Question: Discuss about the Restaurant Of Punjabi By Nature. Answer: Introduction In this report a restaurant called Punjabi by nature has been taken as an example. The activities of the restaurant regarding procurement of its raw materials are being discussed along with its impact on the environment. This report is also going to discuss regarding suggested CSR and non CSR metrics and their positive and negative impact on the business. This report is also going to introduce modification on the CSR and non CSR metrics to improvise on the previous suggestions and also discuss the positive and negative aspects of recommendations made regarding the changes on CSR and non CSR activities to become more environmentally sustainable. Organisational Background Punjabi by nature is a restaurant located in Noida India. There are two main objectives of the business one is to provide prompt services and products that are healthy for its customers and two is to obtain cost efficiency in its services. The chief problem faced by the company is the quality of the products that are received by the company and also the price of the products. The suppliers of the company are providing the company with products that are unhealthy in nature and it is also very expensive which ends up in increasing the menu price of the products. Organisations products and services The main function of the restaurant Punjabi by nature is to serve Punjabi food. The methods of serving the food till now have been serving in the restaurant. The products and services of the company include serving good food and nice ambiance for the customers visiting the restaurant. The company however plan to introduce some additional services for the improvisation of some of its functions like its corporate social responsibility and the supply functions. Buyer behavioural segments Profile Individual/Family Large group Both Demand Booking the restaurant and payment on the same day Advance booking and advance deposits Prompt service and health conscious menu Product/services Generally, standardised products/ services are provided Customised services are provided due to higher payment Consideration for the execution for such product and service is going on (Sulek, Hensley,2007) Competitive Low cost Customised services Can be customised or improvisation of the scenario Sourcing overview The previous diagram showed that there are two tier of the supply the chain the tier 2 include the wholesaler, local farmers who provided vegetable to the primary supplier of the Punjabi by nature of vegetable and meat. The main problem with the veggie basket was that there is high content of pesticide and fertilizers used on the vegetables and the meat is also processed which create environmental pollution. Fresh diary is the supplier of the diary products of Punjabi by nature. They procure their products from RK food land and other local diary suppliers. The chief problem with the diary products include bad impact of fertilizers and depletion of nutrients and using of plastic packaging creating non bio degradable waste (Story et al. 2008). Thus the company should contact with the local farmers and diary workers and make negotiations for conducting direct business with the company and making contracts for using organic sources for production. The extra investment that is going to be necessary for the investment of purchasing organic products can be reduced from the extra charges that were being paid by the company to the middleman in the supply chain i.e. veggie basket and fresh diary. It is not possible for the restaurant to take the step suddenly as the requirement of the products are a daily need of the restaurant and sudden change is going to hamper the regular operation so it is advisable for the restaurant to try and develop the other option while continuing with the current scenario. Student 1 for non CSR The chief problem in the non CSR issue is that the use of technology slows down the process of the placing of order and the acquiring of the vegetable and the diary products. This can be dealt by two methods that is either by making the entire process manual which is not going to be feasible in case the business grows and the second is the use of special software that is going to automate the entire process of inventory management, placing of order and thus speeding up the process of receiving the products. The introduction of automated technology is going to reduce the interference of the workers. Student 2 for CSR The second diagram showed the procurement of electrical appliances and furniture products. These electrical products are being purchased from Voltas. The chief problems due to the use of the electrical appliances by Voltas are the excess use of electricity and the release of chlorofluorocarbon in the air negatively impacting the environment (Park Lee 2009). The company Voltas purchases its products from its wholesalers. The furniture requirement of Punjabi by nature is fulfilled by RK furniture. The using of furniture impacts the nature through deforestation. This is also a serious environmental issue. The only method that can be used by the restaurant to create a more responsible method of dealing with the problem involves safe disposal of the old products that produces CFC and using of new products that doesnt produce any CFC emission. The company can ask its supplier to provide non CFC products in exchange of the old CFC products (McCulloch, Midgle Fisher 2010). The restaurant can start using non wood furniture instead of using wooden furniture. the use of plastic as furniture is not harmful to the environment and thus can be an option for Punjabi by nature. Student 2 for non CSR The purchase of the furniture requirement is done through the evaluation regarding the number of customers visit in the restaurant and the order is done by using of technology. The restaurant aims to purchase non expensive furniture by identifying the expensive furniture provider. This again can be done by locating non expensive furniture dealers and providing order to them. This is not a difficult task as the requirement of furniture is not continuous Identifying the expensive furniture provider Decision Factors There are certain factors that have to be kept in mind by the owner of the business while implementing any changes. There are certain common constraints in the business which are The current suppliers of the business cannot be suddenly changed. Change is possible but it is going to take certain amount of time to execute the change. As a result the restaurant has to continue with the current suppliers while building a new chain. There are constraints in the budget as the restaurants aim to provide good service to its customers at reasonable cost so the procurement of supplies should be feasible or using of CFC products. The technical knowledge of the employees is limited and more employees in technical field can cause more expenses as the staffs are not computer literate. Non-CSR metric The non CSR metrics that is being used is the use of POS software. The main functions of POS software are The POS software is automated and minimum intervention is being required from the side of the employees. The POS software just needs the input of data at regular interval of time which can be done by the person dealing with the cash. The POS software automatically calculates the rest of the functions. The software can automatically send orders when the software goes beneath a certain level. The order amount and placement of order is also done through the software. Extra human effort is not required more people can engage in the regular operation of restaurant There are some additional efforts that are to be done be done by the owner of the business to implement this change Train the cashier in using the POS software Make the suppliers aware of the method that is going to be used by the business to place orders. The cashier has to manually input the data regarding the transactions as well as inventory management. There is a certain set up expense of the entire POS system. The technology has been an issue for the business in this particular field and the aim of the business is to increase the speed of service to provide greater customer satisfaction (Reijers Mansar 2007). The introduction of the POS software is going to increase the speed of the process by reducing the manual interference to the minimum thus it can be stated that the changes brought about by the introduction of the POS software can be considered as a consistent with the company aim. The POS software is the technology that is going to be used in this scenario. There are chances that there is resistance from the side of the staff as it require some adjustment on their part. But if the owner is ready to provide training to the cashier the resistance can be overcome. The person dealing with reporting inventory or cash can acquire the required skill for using the software. The number of people is using the software is also less and the resistance might not become an issue. The practices of the suppliers wont get much effected by the use of the software as it is not mandatory for the supplier to use POS to receive order from POS software it is only expected that a supplier is able to use mobile phones. In case a supplier is unable to use mobile phone the execution of this method might get jeopardised. Non CSR metrics The changes introduced in this non CSR activity are: It is important for the restaurant to do a calculation of the asset valuation cost and locate the exact suppliers who are responsible for charging high on supplying furniture This process is going to help the company to save money by reducing the expenses that are incurred on the suppliers charging extra. Identifying the expensive furniture provider The impacts of the introduction of this operation process are: One of the objectives of the company is to reduce the cost buy identifying the suppliers that are causing the extra expense is going to help reduce the expense to some extent so it can be considered consistent with the purpose of the organisation There is going to be no technology needed in implementing this metric There cannot be any staff resistance as there is going to be no pressure put on the staff to execute this metric Supplier has to be eliminated and new contracts are to be gained to bring the change mentioned in the metrics. CSR metrics for The introduction of this metric is going to eliminate the middlemen in the supply chain who are primarily responsible for the using of the fertilizers and the depleting of nutrient from the diary product this is going to provide health benefit to the customers as well as the environment The chief negative aspect of the process is that it is difficult for the company to take the step as the supply of these food products are a regular operational necessity of the restaurant and is difficult to execute. CSR metric for The using of the non CFC technology in the kitchen has great environmental benefit. This gas has various negative impacts on the atmosphere and the businesses are primarily responsible for large amount of emission. This step is going to be profitable for the environment in general There is a certain amount of expense that the restaurant has to bear for the purpose which can go against the objective of the restaurant that is to be cost effective. Conclusion In conclusion it can be said that there are methods that can be used by the business to enrich its current practices both in terms of CSR and non CSR functions. There are positive and negative sides on implementing such changes. There are some organisational objectives and organisational value both of them has to be weighed and decision shall be taken by the owner of the business. References Story, M., Kaphingst, K. M., Robinson-O'Brien, R., Glanz, K. (2008). Creating healthy food and eating environments: policy and environmental approaches.Annu. Rev. Public Health,29, 253-272. Sulek, J. M., Hensley, R. L. (2007). The relative importance of food, atmosphere, and fairness of wait: The case of a full-service restaurant.Cornell Hotel and Restaurant Administration Quarterly,45(3), 235-247. Park, S. Y., Lee, S. (2009). Financial rewards for social responsibility: A mixed picture for restaurant companies.Cornell Hospitality Quarterly,50(2), 168-179. Reijers, H. A., Mansar, S. L. (2007). Best practices in business process redesign: an overview and qualitative evaluation of successful redesign heuristics.Omega,33(4), 283-306. McCulloch, A., Midgley, P. M., Fisher, D. A. (2010). Distribution of emissions of chlorofluorocarbons (CFCs) 11, 12, 113, 114 and 115 among reporting and non-reporting countries in 1986.Atmospheric Environment,28(16), 2567-2582.

Research Paper on Carbon Footprint Essay Example

Research Paper on Carbon Footprint Essay Carbon Footprint is the total amount of greenhouse gases emitted into the atmosphere over the entire life cycle of a product produced by a person, an organization, event, city, or state, directly or indirectly. We take into account the raw materials used, production, distribution, consumption, and disposal of the product at end of its life. The impact of the product on the environment is measured in terms of the volume of CO2. Actually, CO2 is about 75% of all greenhouse gas emissions (excluding water vapor concentration, which does not tend to change). Greenhouse gases cause the global climate change in the direction of warming; that is why many companies in the last decade tend to reduce emissions of carbon dioxide (and other greenhouse gases) during their professional activity. The contribution of different types of greenhouse gas emissions is calculated based on the set of coefficients that depend on the greenhouse gas â€Å"hazard.† Take, for example, the carbon footprint of a loaf of bread. If we need new areas for planting, we are forced to cut down forests, and this is the first contribution, because trees consume carbon dioxide during the day. For growing grain, it is necessary to prepare fields for planting. This is when the machinery, which runs on fuel, has to be used. It is the second stage contributing to the carbon footprint. Then, for example, wheat growis and requires no maintenance, no special treatment. This stage is without a significant impact on the carbon footprint. After we harvest the crop and store it in the grain elevator, which the third phase of the contribution to the carbon footprint. The elevator requires maintenance – the fourth. The fifth stage is to process wheat into flour and bake the bread is a sixth step. The seventh is to transport it to the stores. The stores need energy to be lighted and heated, that is eighth. Add a bag for bread, which must also be made from raw mat erials – the ninth stage. Finally, we bought it, but we still have the old one in the house, which is not that fresh and attractive to eat, so it goes to dump. We will write a custom essay sample on Research Paper on Carbon Footprint specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Research Paper on Carbon Footprint specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Research Paper on Carbon Footprint specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The garbage or household waste is collected by the machine too, it is the tenth stage. At the landfill, this bread does not seem to pose a serious danger, but in the process of decomposition releases methane – one of the most harmful greenhouse gases – the eleventh stage. Plus, we all know that landfills are growing and need more space, i.e., again there is a need to cut down trees to expand the territory of these sites, which is the twelfth stage. Thus, the life cycle of a harmless, it would seem, a loaf of bread includes twelve stages contributing to the carbon footprint. To learn more about the carbon footprint you should study free sample research paper on different topics. At EssayLib.com writing service you can order a custom research paper on Carbon Footprint topics. Your research paper will be written from scratch. We hire top-rated Ph.D. and Master’s writers only to provide students with professional research paper assistance at affordable rates. Each customer will get a non-plagiarized paper with timely delivery. Just visit our website and fill in the order form with all research paper details: Enjoy our professional research paper writing service!

How to Become a Copy Editor

How to Become a Copy Editor How to Become a Copy Editor How to Become a Copy Editor By Mark Nichol If my recent post about copyediting, or anything else you’ve read or heard about the profession, intrigues you, and you’d like to give it a try, read this advice before you commit: Research Find a managing editor often, MEs are former copy editors or a current copy editor at a nearby company (or locate a freelancer) and request an informational interview. If you’re bashful about â€Å"bothering† someone you don’t know, ask yourself, â€Å"Would I assent if I were in their place?† Most people are happy to share advice with would-be colleagues as long as they don’t come across as predators out to eat them and take their place. Just make sure you don’t try to turn it into a job interview, that you answer the â€Å"dumb† questions yourself ahead of time (by reading articles like this one) and compile some detailed, insightful queries, and keep your promise not to take up too much of their time. It is OK to ask them to let you know, after you tell them they’ve inspired you to pursue copyediting, if they hear about any opportunities or have any more advice to share with you. If you’re already employed in publishing, journalism, or marketing, or have a job in another profession where written communication is a key part of the business, check in with the managing editor, content manager, or whoever by any other name coordinates production of copy and ask them about copyediting opportunities. Many companies don’t have staff copy editors per se, but often copyediting is performed by people with other job titles; find out what those jobs are, and apply for them when they’re advertised in house. Learn Copy editors are the gatekeepers of good grammar. But an English or journalism degree doesn’t confer that status on you; good copy editors are not only innately skilled at what they do but also intimately familiar with any one of several style manuals the particular one depends on the type of publishing and often the specific company. (Many book, magazine, and newspaper publishers have their own guides that both supplement and supersede any others.) Most copy editors who work in book and magazine publishing must get to know The Chicago Manual of Style. It’s a thick tome, but only about half a dozen chapters about grammar, capitalization and other emphasis, numbers, and the like are critical. For newspapers and many online publications, The Associated Press Stylebook, more a directory of accepted usage than a style manual, is the resource of record. The proximity of a well-loved copy of Merriam-Webster’s Collegiate Dictionary, or Merriam-Webster Online among a computer’s bookmarks, is a sure sign of a copy editor. Prospective copy editors, whether employees, contractors, or freelancers, must usually pass a rigorous test that generally consists of an error-ridden writing sample. But just as important as knowing what to revise is understanding how much editing is too much, as well as demonstrating your problem-solving skills. Many people who hire copy editors appreciate those who, rather than asking, â€Å"What should I do about this?† say, â€Å"Here’s what I did about this. OK?† Many university continuing-education programs have one or more courses in copyediting, where you’ll get focused training with a professional. It’s a great networking opportunity, too, because often, students in such classes aren’t necessarily setting out to become copy editors; they may just want to learn copyediting skills to help them in other jobs involving written communication. One of these people might need your help someday. You can also teach yourself Amy Einsohn’s The Copyeditor’s Handbook is the best DIY resource but one or more on-site or online courses will guide you more effectively. Either way, Einsohn’s book, originally conceived as a companion to Chicago, is a handy item. Develop Be prepared to pay your dues. Copyediting is a distinctive skill, and adept practitioners are highly sought after, but it’s also a competitive profession. It will generally take at least a few years to become more than competent. Look for job openings at small newspapers, apply for online copyediting gigs and jobs, and take any internship or entry-level job (such as editorial assistant) in a print or Web-based publishing enterprise you can get; after a stint in that position, ask to take a crack at copyediting assignments or apply when a copyediting job opens up. Be open to proofreading work, too. Proofreading is a similar but simpler skill, involving typographical errors more than substantive editing issues (and it usually pays less), but many copy editors practice both skills, and proofreading is often an entree to copyediting. Eventually, you may decide on a preferred medium books, periodicals, Web sites, reports, all of which have widely different formats, procedures, and other qualities but be flexible when you start your copyediting career. You can always shift to another publishing realm later. As I used to tell my copyediting students only half-jokingly the copy editor’s most essential attribute is omniscience. The best copy editors are voracious (and promiscuous) lifelong learners: Not only do they continuously hone their skills I’m still learning things after a quarter century they are also indiscriminate readers; I can’t tell you how many times my passion for learning random facts and ideas has helped me catch potentially embarrassing errors or correct unfortunate misconceptions. My favorite example: Years ago, when I was copyediting, in proof form, a revised edition of an astronomy textbook, I immediately recognized three factual errors in the caption for an iconic photograph of an Apollo 11 astronaut that read â€Å"Edward Aldrin.† If you can rattle off the trio of trip-ups using only your brain, then maybe you can be one of the few, the proud, the copy editors. Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Freelance Writing category, check our popular posts, or choose a related post below:100 Beautiful and Ugly Words"Have" vs "Having" in Certain Expressions50 Musical Terms Used in Nonmusical Senses

The American Flag and its Growing Controversy essays

The American Flag and its Growing Controversy essays The American Flag and its Growing Controversy The American flag, to many, is the symbol of life and liberty. Freedom from oppression and the ability to run one's own life with minimal government intervention is what our country fought for all those years ago. The day after the SpanishAmerican War was declared, schools mandated the worship of the flag (Kaminer). So, when the issue of burning our great flag arises, everyone should be against it, right? Well, not exactly. The first amendment of the Constitution states that American citizens have the right to express themselves through free speech. Essentially, burning the American flag is speech without dialogue. Therefore, according to the Constitution, flag desecration is legal. However, flag protectionists are not going to give up that easy. The main controversy surrounding this issue is whether an amendment forbidding flag burning would infringe on our first amendment rights. In 1989, the Supreme Court ruled that flag desecration was protected under our first amendment rights. In 1995, a constitutional amendment that would have given Congress the power to ban flag desecration was introduced to the Senate and the House of Representatives (Kaminer). The amendment passed through the House but failed in the Senate by a mere three votes. In February 1997, a similar amendment was again introduced to the Senate and the House Of Representatives (Kaminer). It also failed, but it does show the growing concern about the issue of flag burning. Protectors of the flag argue that burning an American flag is like spitting in the face of America and its democracy. On the other hand, flag burners argue that under America's democracy, they were given the right to express themselves freely. Obviously, this issue may never be settled with a positive outcome. Some arguments that flag burners have raised in their own defense include such things as having a flag bumper s...

International Finance in USA Assignment Example | Topics and Well Written Essays - 1750 words

International Finance in USA - Assignment Example Last March 9, 2006, the US Census Bureau/US Bureau of Economic Analysis issued a press release outlining the state of the country’s economy. It announces that total January exports of $114.4Billion and imports of 182.9 billion resulted in a goods and services deficit of $68.5 billion, which is $ 3.4 billion, more than the 65.1 billion in December. January exports were 2.8 billion more than December exports of 111.6 billion. January imports were 62.2 billion more than December imports of 176.6 billion. (U.S. Department of Commerce, March 9, 2006). The balance of payments (or BOP) is a measure upon which a country traces how much money flows into or out of a given country or countries1. Factors involved in the determination of balance of payment is the country’s export2 and import3 of goods, services and financial capital4, including financial transfers. The need for some balance of payments statistics can be traced back to the Fourteenth century when the Bullionist Doctrine5 was developed in England which led to the prohibition of export of bullion. This is the early form of Mercantilism which seeks to achieve an equilibrium between the value of exports and imports (Soderstien 1980). The latter part of the Mercantilist period observed that there are also transactions which stem from trade relations outside of the country and should be taken into considerations in order to establish a state of economic equilibrium. The principle of balance of payment gives us an idea of how much money or wealth is flowing and how much is flowing out of the county. If the amount of wealth flowing out of the country is more than the amount flowing into such a country, we have a negative balance of payment or a deficit. In the same manner, where more wealth enters into the country than that which flows out, then we have a positive balance which we refer to as surplus.  

Communication or marketing strategies Case Study

Communication or marketing strategies - Case Study Example There are three basic objectives behind communication strategy. These are to create awareness about the brand, to shape the consumer's outlook towards it and also to stimulate her purchasing intent towards the brand. This process has become significantly more important nowadays due to influx of huge numbers of alternative products in any category and due to the ever increasing number of choices in front of the consumer; in the automobile industry the situation is not any different. So to entice the consumer towards a brand and to excite her to buy the product, then making sure that she stays on with the brand and makes a repeat purchase are some of the fundamental imperative objectives of any communication strategy. (Vos M., Schoemaker H., Rusland G., 2004). Ford Motor Company was established in the year 1919 in US. The company produces a range of automobiles from cars to trucks and buses under brands like Ford, Lincoln, Mercury, Volvo. The company also deals in financial services, the prominent among them being Ford Motor Credit Company also know as Ford Credit. (Full Description, April 2009) Under Cars the brands are Focus sedan, Focus Coupe, Fusion Mustang and Tauras.I n Hybrids the brands are Fusion hybrid an Escape hybrid. The crossover brands are Taurus X, Flex and Edge. SUVs comprise of Escape, Sport Trac, Expedition and Explorer. The trucks range consists of Ranger, F-150, F-250 Super Duty, F - 450 Super Duty and E-Series. Important marketing campaigns: Important marketing campaigns in recent times; objectives, target and strategies: Bold Moves Campaign - In 2006 May, Ford launched a new campaign under the concept 'Bold Moves' to inspire buyers to recognize and appreciate the company's bold new image. The campaign uses famous singer Kelly Clarkson's music with images and video portraying cars and buyers. The goal behind the campaign has been to change the mindset of the consumer towards Ford vehicles which have not been selling in large number. Critics have argued about the campaign pointing out that only a bold campaign would not be making any difference rather a bold product portfolio would help the company in notching up sales. Some experts said that the company had launched the campaign keeping in mind the future also. They said Ford might be using this campaign to make the consumer ready for its future launch of bold vehicles. JWT Marriott was the agency behind the campaign and they claimed that the campaign was a long term one with a complete turn around of the brand on their minds. The turn around effort w as termed the Way Forward by the company.( Ford's bold moves fall flat with viewers, August 2006) The Bold Moves campaign was used massively for the Ford crossover vehicle the new EDGE. The company planned to spend more than $100 million behind advertising for the EDGE model. The campaign consisted of television ads on various language TVs which included English, Chinese, Korean, Spanish, etc. famous singer Beyonce Knowles was roped in for singing in the ads.

Peuasive Speech on Uniforms Essay Example for Free

Peuasive Speech on Uniforms Essay Studies have shown that schools with uniforms function as a whole better than schools without them. Their attendance is better and there are fewer distractions. They instil school spirit and students look more professional. They eliminate fads and jealously between the students because of the latest designer labels. Everyone is treated equally with uniforms and it encourages self expression and individuality through academics, extracurricular activities and not by the clothing they wear. They eliminate a reason to feel self-conscious, helping to improve self-confidence of students. School uniforms ensure that students will come to school in appropriate clothing, and ready to learn. In grade 7 I learned that we would be getting uniforms for my grade 8 year. I wasn’t too pleased to hear the news but I soon realized all of the benefits of a uniform. Safety is a big issue in schools these days, especially with all the gang violence and shootings happening in Toronto. When a school has a uniform it is very easy to spot an outsider because of the way they are dressed. If everyone at school is wearing the uniform and someone enters a school not wearing the uniform they can easily be spotted and reported to the office. Many of you are on teams, be it in school or outside. Teams have uniforms to show pride and unity for the school or club they represent. How good does it feel putting on that football or rugby uniform before a game? When you put that uniform on all you can think of is the sport that jersey represents, your performance on the field. That uniform or jersey was specially made to be worn during that sport. When you win you feel pride in wearing the jersey around, and being seen in it. These same key points apply to school uniforms. School uniforms infuse school spirit inside and outside of school, when you put on that uniform and come to school all you should be thinking about it your performance in school, which encourages less distractions. A school uniform is designed specially to promote education and professionalism. Think about how much you spend on your school clothes each year. Regular clothing is becoming far more expensive than a uniform. Back to school shopping would get some much easier, with a school uniform. You would be able to get more nice and expensive clothes for outside of school. A school uniform is very durable and lasts longer than regular clothing because they are made especially for repeated wash and wear. They can also be handed down through siblings going to the same school.

Nora’s Relationship with Torvald Essay -- A Dolls House Relationships

Nora’s Relationship with Torvald The drastic change in Nora’s relationship with Torvald that occurs during the course of the play is made quite evident by what she says and the way she delivers her speech. At the beginning of the play Nora seems completely happy with her doll-like relationship with Torvald. She responds affectionately to Torvald’s teasing and plays along with him – â€Å"if you only knew what expenses we skylarks and squirrels have, Torvald†. She is quite happy to be Torvald’s â€Å"little featherbrain†. However, as the play continues, Nora starts to realise that her marriage has been a performance and that she needs her own freedom. She becomes more rebellious, starts to use the imperative with Torvald and somewhat abandons her childlike language. As the play reaches its end, Nora becomes totally independent from Torvald and talks to him from equal to equal, not daughter to father. At the beginning of the play, Nora’s relationship with Torvald seems that of a child with her father. She is patronised, called a â€Å"little squirrel†, a â€Å"skylark† and accused of being a â€Å"spendthrift† because she can’t save money although she seems quite happy to be called so as she doesn’t complain about it and even plays along - when Torvald says â€Å"scampering about like a little squirrel?† she just answers â€Å"yes† instead of complaining about being treated like a little girl. When Torvald asks her â€Å"what do they call little birds who are always making money fly?† she answers â€Å"yes, I know, spendthrifts† as if she had been taught that lesson many times because she is so childish that she keeps on making the same mistake. She never contradicts her husband – â€Å"very well, Torvald, if you say so† – asks for his approval like a... ...and that â€Å"it’s no good your forbidding me anything any longer† because she has freed herself. By the end of the play Nora has her own voice, not Torvald’s, she is no longer his doll that will do whatever he asks to please him, no longer his â€Å"little skylark† and â€Å"not the wife for you†. Over the course of the play, the alteration in Nora’s relationship with Torvald is made evident by the change in the way she speaks. At the beginning, she is his â€Å"little squirrel†, a childish â€Å"featherbrain† that is pampered and patronised by Torvald. The various turning points in the action, where Nora starts to change the way she speaks, using the imperative and contradicting Torvald start to show the change in the relationship that is completed by the end of the play, when Nora talks clearly to Torvald from equal to equal, having a voice of her own, no longer his doll.

Comparing the Childhood and the Present Life

In the course of growing and becoming adult all people change their habits, points of view, interests and their appearances. But all people vary in different ways: some people deviate just in their appearance and don’t change their habits at all, but the others change absolutely all in themselves. Nevertheless there is one thing that we can’t change during all our life, this thing is our memory. Things that are learned early in life are the hardest to change or unlearn.Early conceptions of the world, even if lost to consciousness, remain a part of our memory and may influence our behaviors in some very interesting ways. For example when I was a child I attempted to explain and make sense of my world in terms of my experience. By the very nature of my limited number of years, my experience was not very wide or deep. My interpretations of the world, why things happened, were extremely limited and often very inaccurate. All things were divided by me into two groups: black and white or bad and good.I didn’t understand why my parents scolded me and why they forbade me different things that I wanted to do. And all what I had to do was discover the world around me. However when I became a teenager, things were starting to look more difficult. I left my toys behind and started looking for my own personality. I formed my main aims that I wanted to achieve in the future. And now I’ve turned 18, and I bet I could fill the entire paper with stories about what I used to be like, odd habits, that I dropped and so forth.Now I’m considered an adult. Of course I’ll continue to learn and experience new things, but the essence of my character won’t change. Hence, I should develop myself to become successful and outstanding person. Apart from the habits and the behavior I have changed outwardly. Earlier I had a round face with smooth and tan skin, with distinked eyes, with dimples, and without any wrinkles on my forehead. But now I can say that my face is more oval, and in general i’ve become well-build and broad-shouldered!!

Banking Concepts and Practices

XITE, Gamharia Banking Concepts & Practice [Paper 11: Elective II, Academic Session 2011-12] 1. Evolution of Banking: Bank-Meaning, Definition, Features & Classification, Concept of Different Types of Banking System, Overview of Indian Banking System 2. Commercial Bank: Basic Concept of Commercial bank, Role of Commercial bank in Financial System, Credit Control by Central Bank 3. Central Bank: Meaning, Functions, Methods of Credit Control 4. Monetary Policy: Meaning, Objectives and Instruments 5. Customer Relationship: Definition, Features of Contractual Customer Relation, Customer Orientation, Retail Banking 6. E-Banking: Concept, ATM, Core Banking, Virtual Banking, Electronic Payment System Reference Books: 1. Banking Law and Practice- P. N. Varshney 2. Indian Banking- P. Parameswaran & S. Natarajan 3. Money, Banking & International Trade- M. C. Vaish 4. Banking Concepts & Practices- Shekhar & Shekhar 5. Banking Concepts & Practices- Canon Notes prepared by: Fr. Alex Mascarenhas SJ, Loyola Nivas, H-15, St Mile Road, Sakchi, Jamshedpur 831 001 INDEX | | |EVOLUTION OF BANKING |NEGOTIABLE INSTRUMENT | |MEANING OF BANKING |BILL OF EXCHANGE | |CLASSIFICATION OF BANKS |PROMISSORY NOTE | |SYSTEMS OF BANKING |CHEQUE | | |CROSSING & ENDORSEMENT | |INDIAN BANKING: PROFILE | | |INDIGENOUS SYSTEM |BANKING PRACTICE | |MODERN FINANCIAL SYSTEMS |BANK ACCOUNTS | |CHANGING PROFILE |TIME DEPOSITS | |CHALLENGES AHEAD |LOANS & ADVANCES | | |CHARGE CREATION | |COMMERCIAL BANK |TYPES OF SECURITIES | |FEATURES |BILLS COLLECTION | |ROLE IN FINANCIAL SYSTEM |PAYING BANK | |MULTIPLE CREDIT CREATION |COLLECTING BANK | | |GRIVANCE REDRESSAL | |CENTRAL BANK | | |CONCEPT & MEANING RETAIL BANKING | |FUNCTIONS | | |RESERVE BANK OF INDIA |BANKING SERVICES | |NEW TRENDS IN CENTRAL BANKING | | | |ANCILLARY SERVICES | |MONETARY POLICY | | |MEANING |E-BANKING | |OBJECTIVES | | |INSTRUMENTS |CONCEPT EVOLUTION | |TYPES OF MONETARY POLICIES |CORE BANKING | |RBI MONETARY POLICY |VIRTUAL BANKING | |LIMITATIONS |E-PAYMENTS | | |MERITS & DEMERITS | |CUSTOMER RELATION | | |MEANING |APPENDIX | |NATURE OF RELATIONSHIP |MUTUAL FUNDS | |FEATURES |BANK NATIONALIZATION | |CUSTOMER ORIENTATION | | EVOLUTION OF BANKING A. MEANING OF BANKING: Banking was first associated only with the lending activity. The idea of accepting deposits from the public in order to lend it to others on credit developed much later. Modern banks have gone way beyond traditional banking and have added fee based financial as well as ancillary services to banking which are very much within the limits of their expertise. A1. DEFINITION: Dictionary gives multiple meanings of a BANK- †¢ It is a heap or storage of goods. †¢ It is the shallow edge of the sea. †¢ It is the raised edge of a river or a road. †¢ It is a blockage of sandbags to a flow of water. Though none of these explanations speak directly about financial dealings, all of them give a common meaning that it is a sort of CUSHION provided to PROTECT something. Hence, there can be a grain bank, a blood bank, a sperm bank, a question bank, a river bank, money bank, etc. The exact origin of the word bank is not certain. Some trace its origin to German word ‘Banck’ which means heap or mound, others trace it to Italian word ‘Banco’ which means heap of money while some others trace it to the French word ‘Banque’ which means a bench for keeping things. Jewish bankers and money changers transacted their business of lending and exchanging money on benches in the marketplace in Lombardy and so the bench became the banking counter. Bible has a reference to money changers who were transacting business on their benches inside the Jewish temple and Jesus throws their benches and scatters them. If a banker failed by losing all his money, his bench was broken up by the people which gave birth to the word ‘bankrupt’ Monetary banks derive their meaning from all the above concepts. They provide facility to the customers to ‘store’ their wealth and give ‘protection’ to it and in the mean time they lend it to others to ‘gain’ some returns. †¢ According to Kent, â€Å"bank is an organization whose principal operations are concerned with the accumulation of the temporarily idle money of the general public for the purpose of advancing to others for expenditure. †¢ According to Crowther, â€Å"bank is one that collects money from those who have it to spare or who are saving it out of their incomes and lends the money so collected to those who require it. † †¢ According to Hart, â€Å"banker is one who in the ordinary course of business honors cheques drawn upon him by persons from and for whom he receives money on current accounts. † †¢ According to John Paget, â€Å"no person or body corporate otherwise can be a banker who does not take deposit, does not take current accounts, does not issue and pay cheques and does not collect cheques for his customers. † All these definitions have described the meaning of a bank but have not given a precise definition. Banking Regulation Act of 1949 u/s 5(1) has given the meaning of banking as follows- â€Å"Banking means accepting for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise and withdrawable by cheque. † Hence, bank in the technical sense can be defined as â€Å"an institution that accepts refundable deposits for lending or investing. † The concept of offering fee based services has no direct connection to traditional banking; it evolved much later due to the financial expertise available with the banks. A2. HISTORY OF BANKING: The concept of banking is as old as the authentic history of humanity. ANCIENT WORLD: The system was started by the Babylonians before 2000 BC. The practice of granting credit was widely prevalent in ancient Greece and Rome. Credit by compensation and by transfer orders is traced to Assyria, Phoenicia and Egypt even before its development in Greece and Rome. EUROPE: Many European countries established public banks either for facilitating commerce or to serve the government. Begun as an office for transfer of public debt, The Bank of Venice [1157] is the most ancient bank. The Bank of Amsterdam was established in 1609 to meet the needs of the merchants of the city. It accepted all kinds of specie deposits to be withdrawn or transferred to another account later using a certificate valid for six months. These written orders in the course of time got transformed into modern day cheques. ENGLAND: English banking began with the London Goldsmiths who accepted customer’s valuables for safe custody and issued ‘payable to bearer’ receipts which in course of time enjoyed considerable circulation. Actual growth of private commercial banking began with the establishment of Bank of England in 1694. INDIA: The first reference to banking in India is found in the book ‘Arthashastra’ by Chanakya in the year 300 BC. He mentions about guilds of merchant bankers who received deposits and advanced loans. The traditional indigenous bankers and money lenders were active in India since time immemorial. The first bank in today’s understanding to be established in India was Bank of Hindustan in 1770. Unfortunately it failed subsequently. Presidency Bank established in 1806 which then became Imperial Bank and finally State Bank of India is the first successful bank in India. Co-operative credit banks started playing significant role since II world war. A3. FEATURES OF A BANK: Features of a bank are the services they offer to their customers. Traditional banks have just two features: accepting deposits and lending money on credit. Modern banks have introduced a third feature of fee based services. A3a. DEPOSITS are basically of two types- Demand deposits & Time Deposits. Demand deposits are in the form of running accounts like Savings Bank A/c, NRE A/c, Current A/c and Overdraft A/c depositing or withdrawing money without any advance notice. On Savings Bank A/c and NRE a/c banks offer interest on the balance amount where as for an overdraft a/c they charge interest on the money overdrawn. Current A/c and the credit balance in Overdraft A/c fetch no interest to the account holders. All these accounts will have cheque book and passbook facility. Now one can do banking transactions from the comforts of ones own office or room or while traveling even without entering the bank premises, pay bills anywhere and anytime and draw cash from ATM day and night and even during holidays through e-banking. Time deposits are always accepted to mature on a due date. Banks give interest on time deposit. Longer time deposits usually [but not necessarily] fetch higher interest. All banks allow pre-maturity withdrawals of time deposits and give whatever interest is applicable for the duration the deposit was with the bank with or without a penalty interest for pre-maturity withdrawal. A3b. CREDITS can be further sub-grouped duration-wise or security-wise: Duration-wise credits can be short term for less than a year or medium term for one to three years or long term for beyond three years. Banks usually prefer short term credits as they give better liquidity. Long term credits are usually given for capital requirements. Customers are charged interest on credit which is little higher than the interest banks give on deposit. Security-wise credit may be secured, partially secured or clean. When credit is given against a collateral tradable security of at least equal value it is termed as secured credit. If the securities offered against the credit do not cover the credit amount completely then it is partially secured credit. If personal guarantees are offered instead of any tradable securities, it is a clean credit. Banks usually prefer secured credit to ensure the capital safety. A3c. FEE BASED SERVICES may or may not be linked directly to banking activities. These features are unique to commercial banks and are on offer because of the expertise they have and also because their primary aim is profit. Cooperative banks usually do not offer such services except cheque book and bill collection facility. Some of the fee based services offered by them are- Financial Services are those involving money through the customer’s accounts like Cheque, Bill Pay, Bill Collection, Debit Card, Fund Transfer, etc. Free availability of sufficient funds in the account is pre-condition for these services. †¢ Utility Services are those financial services which are provided by the bank to th e general public even without having an account in the bank like Foreign exchange, Bank Pay Order, Bank Drafts, Traveler Cheque, etc. Funds and the bank charges have to be provided at the time of availing these services. †¢ Agency/Fiduciary Services are those services in which the bank acts like an agent/trustee on behalf of its customers like Letter of Credit, Bank Guarantee, Originator/ Underwriter of Capital Issues, Safe Deposit Locker, Safe Custody, etc. Investment Services are those agency services where bank guides the customers in making investments outside the bank for higher returns like D-Mat A/c, Brokerage and Advisory Service. B. CLASSIFICATION OF BANKS: There are various types of banks depending on the purposes of their businesses. But such a classification may or may not be exclusive since some overlapping is always possible- B1. COMMERCIAL BANKS by their very name mean business and so perform all kinds of banking functions such as accepting deposits, advancing cr edits, offering fee based ancillary services including foreign exchange and foreign currency remittances. They are organized in the manner of joint stock companies. Their main aim is to maximize profit from their banking business. Hence, they have expanded their network through branches wherever there is a possibility of better banking business. In many developing countries like India, commercial banks are obliged to contribute to the economic growth of the country through various regulations of the regulatory authorities. These banks may be govt. owned, public sector or private sector or even foreign banks. Private sector and foreign banks vie with each other in providing personalized services in order to expand business. B2. FOREIGN EXCHANGE BANKS are specialized in foreign exchange and financing foreign trade in addition to the normal banking services. They also offer other information collecting services to their customers on foreign trade prospects, foreign agents, and foreign collaborators and provide foreign currency remittance facilities. Foreign exchange banks usually have their head offices outside the country. Their branch network is usually bare minimum; restricted only to big urban centers with great potential for foreign exchange business. B3. INDUSTRIAL BANKS are also known as development banks and are specialized in providing long term loans to industries for the purchase of assets. They are usually not into ordinary banking services; they basically underwrite shares and debentures of industries and also subscribe to them. Some of the industrial banks are- Industrial Finance Corporation of India-IFCI, Industrial Development bank of India-IDBI, Industrial Credit & Investment Corporation of India-ICICI [now merged with ICICI Bank Ltd. ] and Small Industries Development Bank of India-SIDBI. These are more of finance companies set up by government than banks. B4. AGRICULTURAL BANKS like State Cooperative Banks-SCB, District Central Cooperative Banks-DCCB, State Cooperative Agricultural & Rural Development Banks-SCARDB, Primary Cooperative Agricultural & Rural Development Banks-PCARDB and Regional Rural Banks-RRB provide all types of agricultural credits to the farmers for their short term, medium term and long term agricultural needs. They also offer limited ordinary banking services that are required by the farmers. Land Development Bank of India-LDBI gives long term loans on mortgage of agricultural land and National Bank of Agriculture & Rural Development-NABARD gives refinance to other institutions which give direct agricultural loans to the farmers. Both these banks do not provide retail banking services. B5. COOPERATIVE BANKS work on the principle of cooperation among a group of shareholding members usually confined to a small geographical locality and the purpose of their cooperation. Their activities are largely restricted to their own members. They do not come under the strict regulatory controls of Central Bank since they are separately covered under Cooperative Societies Act. But they do have regulatory norms to satisfy, though not of the same level as that of the commercial banks. Cooperative banks are basically of two types- Urban Cooperative Banks that cater to the needs of urban population and †¢ Rural Cooperative Banks which cater to the needs of the rural population. B6. SAV INGS BANKS promote small savings and mobilization of resources. They may not lend on credit; they may invest the entire sum to produce returns enough to pay good interest to their deposit holders. They are very successful in Japan, Germany and India. Post Office Savings Bank, Employee Provident Fund and Public Provident Fund are some examples of Savings Banks. B7. INVESTMENT BANKS are financial organizations which assist business houses to raise funds for their long term capital requirements from the market hrough the sale of their shares and bonds. Hence, they certainly conduct other ordinary banking business in order to collect funds for their business. These banks act basically as middlemen or agents. They function in two ways- †¢ Originator- They act as originators of the capital issue by bringing out the new issue and managing it until the shares are finally allotted for a fee for the services provided by them. They have nothing to do with the gain or loss of the capital i ssue which goes directly to the company. †¢ Underwriter- They under-write the entire capital issue for a mutually agreed price and re-issue the shares to the public for the market price. The entire gain or loss made in the process is the gain or loss of the bank and not of the issuing company. Commercial Banks are also eager to provide investment banking facilities since these are basically wholesale banking activities with definite sources of large gain in a short span of time with or without committing one’s own funds. B8. MERCHANT BANK is a loosely used term. Some merchant banks may neither be a merchant nor a bank. Merchant banks mainly deal with corporate financial advice such as share issue, capital re-construction, mergers and acquisitions. Merchant banks also accept deposits and are involved both in money market operations and foreign exchange dealings. They also manage funds on behalf of their clients. B9. CENTRAL BANK is not a commercial bank; it is the apex bank of a country which controls nation’s monetary and banking structures, like Reserve Bank of India. It is owned by the central government in most of the countries but not necessarily always. For example, in USA it is owned collectively by the member banks. Central banks work in the national interest in developing the nation’s economy. Central bank does not deal with ordinary banking activities. It issues and regulates currency, provides banking services only to the central government, the state governments and the member banks, keeps cash reserves of the member banks, holds gold reserves of the country and nation’s forex reserves, acts as clearing house and acts as a lender of last resort. C. SYSTEMS OF BANKING: There is no uniform system in commercial banking. They have evolved based on the needs of a particular place. Philosophically there are two banking systems- Capital based Western Banking System and Service based Islamic Banking System. Islamic banking system is the only banking system in the world that is totally fee based and does not pay or give interest. Islamic banks collect fees for all the services offered by them since giving or receiving interest is against the Islamic Law- Shariat. Most commercial banks follow capital based banking systems: they accept deposits from the public at lower interest rate and give out credit on higher interest. The difference in interest rate is their profit which is gained by from their capital. They also charge a fee for all the value added services rendered by them. In practical sense we come across three major western banking systems worldwide- C1. GROUP BANKING is commonly found in USA. It is a federal system favored mostly by banks in USA. Under this system, a group of banks come under a centralized management of a holding company may or may not be affiliated to a larger bank or any government controlled agency. Holding company exerts control over all the subsidiary banks though each subsidiary bank maintains its own distinctive identity. The group may also include non banking financial corporations. In some cases instead of a holding company, individuals or a group of individuals take the control over administration of the member banks through ownership of their stocks. Such a system is known as CHAIN BANKING. For all practical purposes, both mean the same except for their ownership pattern. MERITS- 1. Parent bank pools the resources and helps the member banks. 2. Large credits more than a member’s capital can be handled through consortium basis. 3. CRR, SLR and capital requirement is centrally maintained by the parent bank. 4. Parent bank provides service on research, legal matters and investments, reducing individual member bank’s cost. DEMERITS- 1. It is a step towards monopoly, not healthy from economic point of view. 2. Decline in business of one member in the group affects the entire group. 3. If the parent body is not a bank, it may divert funds to further its own interest. C2. UNIT BANKING system is an individualistic system also favored largely in USA. In this system each bank is a centralized unit without branches; it may have service centers like ATM at multiple convenient places or even a few branches within a strictly limited area. All functions of the bank are performed at one centralized place. For remittances they are linked through correspondent banks. MERITS- 1. Every type of banking service is available under one umbrella 2. It is competitive and highly efficient. It can take prompt decisions. 3. Continuity in personal relation helps in customer care. 4. Even unique local needs are addressed by this system. DEMERITS- 1. Being localized, it can not spread risk and its resources are limited. 2. They can not diversify services, can not have large scale operations 3. Mobilization of funds is limited to their own area and so fear of failure exists. 4. They have to depend upon their correspondent bank for remittances, increasing cost. 5. Very difficult to run unit banking in rural areas since rural resources are limited. C3. BRANCH BANKING system is followed almost universally. In this system banks will have their head office at one place and branches at multiple convenient places. Each branch functions like any other full fledged bank and yet is fully controlled by the head office. They even have specialized branches to take care of specific requirements of customers, like NRI branch, SSI branch etc. This is very convenient to the customers. In some branches even the weekly holiday is changed to suit the people of the area. MERITS- 1. This system can spread risk, diversify services, can have large scale operations. 2. It can have specialized branches for exclusive purposes. 3. They can move cash reserve from less required branch to more required branch. 4. Remittance through branch system is easy, cheap and efficient. 5. Brings uniformity in the functioning supported by centralized system. 6. There will be an efficient head office control and less fear of failure due to its size. DEMERITS- 1. Centralization of command delays decision making process. 2. Every branch may not be in a position to offer all banking services 3. Administration tends to be bureaucratic, sticking to the rules at the cost of the need. 4. More the branches, difficult will be monitoring and supervision 5. Unique local needs may not be well taken care of From the above analysis we can safely conclude that branch banking system is the best system and so is favored world over. NOTE: State Bank of India is planning to bring itself and its subsidiary banks with all their branches under one Holding Bank which will be like a Central Bank with full policy control over its member banks and yet with administrative freedom given to each of the member bank to maintain their unique identity. This will also be a group banking system with an important change that the holding company is a bank whose majority stake is held by the government. Hence, this system is going to combine the advantages of all the three systems discussed above. INDIAN BANKING: PROFILE In India, ancient scripts as old as ‘Manu Smriti’ deal with regulations on credit like- credit instruments, judicial proceedings on credits, renewal of commercial papers, interest on loans, etc. Chanakya’s Arthashastra refers to accepting deposits for lending. This was mainly money lending where as the modern concept of banking came to India with the colonial rulers. Though Chanakya’s Arthashastra speaks both about deposit and credit, it is basically money lending. INDIAN BANKING SYSTEM – AN OVERVIEW v v v INDIGENOUS SYSTEM BANKING SYSTEM NBFI v v v Indig. Banker Money Lender. ____ _v______ DFI NFFC MF. v Cooperative Scheduled v v Rural, Urban, LTCCS Coop Commercial v v v SCB, DCCB, PACS SCARDB, PCARDB Public, Private, Foreign, RRB v Nationalized Banks, SBI, SBI Group A. INDIGENOUS SYSTEM is the oldest system of banking in India. It is basically a business for profit controlled by a few upper caste communities. Hence, it got degenerated into highly exploitative system against the lower castes and accepted by the masses out of helplessness. A1. INDIGENOUS BANKERS are individuals or firms who lend money against securities- hundis, promissory notes and legal bonds which state the amount of loan, due date, rate of interest and penalty interest beyond due date. They may or may not accept deposits from the public. It is a monopoly of certain castes among Multanis and Marwaris, in the West, Gujratis and Bengalis in the East and Chettis and Brahmins in the South. The interest rates of these bankers range from 6% to 150% depending on the nature of the security. Many of them have trading interests and control the marketing of the borrower’s products. They operate mainly in big trading centers with their offices and branches. A2. MONEY LENDERS are individuals usually from Mahajan, Sowcar and Pathan communities. They do not accept deposits and their methods of business are not uniform. Others with surplus funds too are involved in money lending occasionally. Money lenders usually lend small amounts on personal security without any written agreement with prohibitive interest ranging from 75% to 300%, invariably quoted and collected on a monthly basis. They operate mainly among peasants and urban labor class. The lenders in both these categories are not interested in increasing productivity through credit. They are not even bothered about the principal amount as long as the interest keeps coming on time. Most of their credit goes for non-productive consumption activities. They are willing to give fresh credit to pay off the old credit with interest as it enhances their earning. There are enough cases where illiterates get cheated by them. Money lending now requires a govt. license and has a cap on interest rates. In spite of such restrictions, money lending business it still continues illegally among the low income groups because of easy access, absence of paper work and familiarity with the lenders. B. NON BANKING FIN. INSTITUTIONS or NBFI consist of development finance institutions, non-banking finance companies and mutual funds governed under SEBI. They do not come under direct RBI control like the commercial banks. B1. DEVELOPMENT FINANCE INSTITUTIONS: established by the central government for specific priority sector developmental activities. They are EXIM Bank, NABARD, NHB & SIDBI. EXIM Bank derives its name from Export-Import and its main activity is direct lending by way of long term loans and investments in export and import activities. †¢ NABARD is abbreviation for National Bank for Agriculture & Rural Development and is involved in refinancing banks and non banking financial institutions for agricultur al and rural developmental activities. †¢ NHB stands for National Housing Bank refinancing banks and non banking finance institutions on housing credits. †¢ SIDBI is short form for Small Industries Development Bank of India and it extends refinance to banks and non banking finance institutions for small scale industries. B2. NON-BANKING FINANCE COMPANIES: come under the regulations and supervision of RBI since 1998 but not under the II schedule like the scheduled banks. They are private or public limited companies and are allowed by RBI to accept deposits and offer 1% higher interest than the banks. They give credit only for the specific activities for which they are established like- equipment leasing companies, hire purchase finance companies, investment companies, loan companies, housing finance companies, etc. B3. MUTUAL FUNDS: are trusts that accept funds from the investors and redeploy them both in equity market as well as non-equity securities in a pre-determined pattern made available to the investor in advance and fully share the accrued profits with the investors after deducting their legitimate expenses. Hence, gain from mutual funds depends on the types of securities purchased by them. Broadly speaking there are three types of Mutual Funds. Equity Funds invest at least 65% of their funds in various equities and may give superlative returns or make one lose one’s own money depending on the market situation. Debt Funds invest in non equity securities and give low but steady returns. Balanced Funds are combination of both equity & debt funds. For a detailed discussion on Mutual Funds please see appendix at the end. C. BANKING SYSTEM consists of both cooperative and scheduled banks. C1. COOPERATIVE BANKS received momentum after the 2nd World War. They are formed by the cooperation of any group under the Co-op Societies Act. Such groups are largely localized and the success depends on their own expertise. Urban Co-op Banks catering to the needs of the urban population and Rural Co-op Banks such as State Co-op Banks and District Central Co-op Banks catering to the needs of the rural population fall in this category. Co-op Banks are not listed under the second schedule of RBI Act, 1934 but they come under RBI supervision separately. They are required to allocate 40% of their credit to the priority sector of the government like any other commercial bank, work within the jurisdiction of their state and are primarily into short term credit to its members. They are allowed to offer cheque book facility and interest 1% higher than commercial banks on deposits, but they do not offer all the banking and other ancillary facilities of a full fledged bank. All co-op banks/ credit societies have to be registered under Cooperative Societies Act of the respective states. They work on the basis of cooperation and can be established by any group of people by forming a co-op society and subscribing for their shares. The main difference between a co-op bank and a co-op credit society is that the former can receive deposit from general public and give cheque book facility but give credit only to the members where as the latter provides its services and benefits only to its members. Besides these, there are also Primary Agricultural Credit Societies, Primary Cooperative Agriculture & Rural Development Banks and State Cooperative Agriculture & Rural Development Banks in the cooperative sector. Cooperative banking structure, particularly the rural sector cooperative banking is quite complex in India. It can be broadly classified as follows- Urban Cooperative Banks alone have a single tier structure catering to all types of needs of the urban population through their branches in major cities spread all over the state, just like any other bank. Rural Cooperative Banks have three tier structures of delivery- State Cooperative Bank at the Apex level, District Central Cooperative Bank at the Intermediary level and Primary Agricultural Credit Societies at the Base level. Long Term Cooperative Credit Societies usually have two tier system- Primary Cooperative Agriculture & Rural Development Banks at the base level and State Cooperative Agriculture & Rural Development Banks at the state level. Some states have unitary system with State level banks working through their own branches and some other states have a mixture of both systems. C2. SCHEDULED BANKS are those which are registered as joint stock companies under Indian Companies Act and are also listed under 2nd schedule of the RBI Act, 1934. They are licensed by RBI to have branches all over India or even abroad and perform all banking activities including foreign exchange. They are required to lend 40% of their credit to the priority sectors of the government. They directly come under RBI regulations and supervision. RBI control over the scheduled banks is so efficient that we do not have any example where a scheduled bank has ever applied for liquidation since the inception of RBI. Scheduled banks are basically of two types- a. SCHEDULED COOPERATIVE BANKS are those cooperative banks with a large capital base and listed under the 2nd schedule of RBI Act of 1934. They can offer all banking facilities just like any other commercial bank. b. SCHEDULED COMMERCIAL BANKS are those private or public limited joint stock companies listed under the 2nd schedule of RBI Act of. They are further classified into 4 groups: Public Sector Banks, Private Sector Banks, Foreign Banks and Regional Rural Banks. b1. PUBLIC SECTOR BANKS are public limited companies whose majority shares are held by the government. Hence, their board of directors is fully controlled by the govt. and they come directly under govt. regulations. They are further classified into State Bank of India, Subsidiary Banks of SBI and Nationalized Banks. †¢ STATE BANK OF INDIA: The East India Company established three banks- Presidency Bank of Bengal in 1809, Presidency Bank of Bombay in 1840 and Presidency Bank of Madras in 1843 as bankers to the respective Presidency Governments. In 1921 they were amalgamated into Imperial Bank of India which also functioned as the central bank till RBI was formed in 1935. In 1955 it was nationalized and re-named as State Bank of India, popularly known as SBI. It also acts as the banker to the government wherever RBI does not have its offices. †¢ SUBSIDIARY BANKS OF SBI or SBI Group was formed by SBI with majority shareholding in them. State Banks of Saurashtra / Indore have merged with SBI in 2008 & 2010 respectively. State Banks of Mysore / Travancore / Hyderabad / Patiala / Bikaner & Jaipur are in the process of merger. SBI European Bank is their foreign subsidiary bank. †¢ NATIONALIZED BANKS: 14 commercial banks were nationalized in 1969. They are- Allahabad Bank, Bank of India, Bank of Baroda, Bank of Maharashtra, Canara Bank, Central Bank of India, Dena Bank, Indian Bank, Indian Overseas Bank, Punjab National Bank, Syndicate Bank, United Commercial Bank, United Bank of India and Union Bank of India. 6 more were nationalized in 1980. They are Andhra Bank, Corporation Bank, New Bank of India, Oriental Bank of Commerce, Punjab & Sind Bank and Vijaya Bank. b2. PRVIATE SECTOR BANKS do not have any govt. stake in their share holdings. Most of them are owned and controlled by business groups and follow aggressive corporate culture in their functioning to maximize their profits. The promotion prospects of their employees are directly linked to the business they promote unlike in public sector. Hence, they are far ahead of public sector banks in value added services, customer care and at the same time they also charge a host of hidden costs unlike the public sector banks. b3. FOREIGN BANKS are those banks whose head offices are located outside India and are allowed to do banking business under certain conditions. Prominent among them is lending 32% of their credit to the priority sector including export credit. Financing foreign trade remains their main business in India. They can fulfill their priority sector lending requirement by lending to priority sector export business and investing in priority sector government financial institutions. b4. REGIONAL RURAL BANKS were created to provide institutional credit and other facilities to the small and marginal farmers, agricultural laborers, artisans and small entrepreneurs in rural areas under 20 point Economic Program of the central government. 19 such banks were established in 1976, one in each state. They were given a jurisdiction to work, freedom to have branches or agencies within their jurisdiction and were put under the sponsorship of a nationalized bank. Ownership pattern of the capital was 35% with sponsor bank, 50% with the central govt. and 15% with the state govt. D. CHANGING PROFILE: Indian economic policy has been founded on the philosophy of economic growth and social justice. Indian banking sector has undergone a dynamic change over the years based on the needs of its economy. Most important among them are- REACH- The branch network of Indian banking system in so extensive, it covers almost all remote corners of India. It is one of the largest networks in the wo rld. †¢ DEVT- The diversification and development of our economy and its rapid growth is all because of our banking system’s credit to various priority sectors. These achievements have become a reality because of the changing profile of our banking system over the years. We shall discuss the major changes in the profile as under- D1. CHANGE IN SECURITY ORIENTATION: Traditionally personal creditworthiness of the borrower mattered a lot for any credit to be released. It meant, safety of the credit alone mattered for the banks and this safety came from the wealth the customers possessed. It effectively meant that only moneyed people could borrow from the bank. Now, banks have now changed their orientation from safety to purpose. Credit is now made available to make them creditworthy. Hence, technical competence of the borrower, operational flexibility and economic viability of the project has become more important than the security offered by the borrower. D2. CHANGE IN REGIONAL IMBALANCES: Private Banks opened their branches in urban locations because of the business potential. As a result Rural India remained unconnected by the banks. For example, pre-nationalization of banks there were only 12555 branches of banks in the entire country and they were located mainly in the urban centers. Post nationalization of banks number of branches has rapidly risen and as of Mar-09 it stands at 82408 branches. It is important to note that over 49% of these branches are now in the rural areas. It gives evidence that banking network has now spread uniformly to cover the entire nation without rural-urban bias. D3. CHANGE IN BANKING HABIT: As a natural corollary to the development in the field of branch banking, development of baking habits in India have grown at an unparalleled pace. Banks have successfully induced the customers to save a part of their earning in banks for the future. Some banks even sent their agents door to door to collect the savings. This helped the banks to diversify their lending portfolio considerably. If the deposits & advances counted for 13% & 10% of GDP respectively in 1969 they shot up to a whopping 50% & 25% respectively in 2002. D4. CHANGE IN BANKERS ATTITUDE: A welcome change is the change in the attitude of the bankers. Earlier lending had a wholesale character coupled with the security of the credit. This attitude of the bankers made the banking facilities almost the exclusive prerogative of the elite classes. With the branches reaching the rural areas banking went retail and for the ordinary masses. Grant of credit no more became a matter of privilege; it became available for genuine production need based purely on technical norms. D5. CHANGE IN BANKING PRODUCTS: As the focus got shifted from wholesale to retail banking, private banks in particular came up with novel products to suit the needs of the retail customers, like- home loan, auto loan, credit card, etc. Pigmy deposit introduced by Syndicate Bank and imitated by others in its various forms for example aimed at pooling idle money and inculcate saving habits among people. Banks sent their agents door to door to collect the deposit money on a daily basis and without setting a minimum. Bank deposits grew substantially because of this scheme. Such innovative products were considered a tough proposition earlier by the banks due to the volume of operations involved. Now, computerization of banking system has removed this difficulty. Some of the banks have started offering even auto FD where amounts above a pre set limit gets converted automatically into FD to fetch higher interest and gets redeemed automatically when cheques are presented and the account runs short of balance. D6. CHANGE IN MODE OF BANKING: When the banking system was manually operated, almost all services were time consuming except depositing money into the account in the base branch where the account is maintained. Computerization of banking has made service faster; the entire country is made to appear like one branch and even the necessity to go to the bank during banking hours for transactions is becoming redundant. Cash can be drawn from ATM anytime, even during holidays and bills can be paid directly to the account from one’s own office. D7. CHANGE IN NON-BANKING ACTIVITIES: Many banks have diversified their activities beyond traditional banking activities like equipment leasing, hire purchase financing and factoring [acting as agents for the customers. ] A major step in this direction is the merger of ICICI with ICICI Bank D8. CHANGE IN APPROACH TO CREDIT: As a corollary to the shift from security orientation to purpose orientation, bank’s approach to credit also changed from lending to development in the recent past. Banks started lending for the purpose of industrial development, providing access to capital market and long term savings of the economy. They even started specialized branches to cater to the specific needs of the customers, like- NRI Branch, Overseas Branch, SSI Branch, Recovery Branch, etc. D9. CHANGE IN CUSTOMER SERVICE: Private Banks started giving more focus to customer care in order to win more business. They even gave free collection and delivery facilities to HNI customers. To cope with the increasing banking habit, RBI too came up with a Banking Ombudsman scheme to redress the customers’ complaints. E. CHALLENGES AHEAD: Banks have sacrificed some qualitative aspects of growth while expanding the banking system to achieve development and increase its reach. Prudent regulations have no doubt helped to ensure systemic stability, but enhanced efficiency would necessitate institutional changes in the internal functioning of the banks in the following fields- E1. ORGANISATIONAL STRUCTURE: Centralized structures work wonders under uniform conditions. As the banks diversify their business into the field of agriculture, rural development and other priority sectors they have to deal with different types of customers who need different kind of treatment. They can not afford to force the standard sophisticated practices on all the customers uniformly. For example, to finance rural development it is very much essential that banks evolve simple and meaningful procedures to the comfort of the rural folks. The most common complaint against banks is the under-financing and non-availability of timely credit to meet the borrowers’ need based requirements. Hence, banks must revamp their organizational structures by delegating power, decentralizing control and monitoring performance. E2. EXCELLENCE IN MANAGEMENT: Quality of management is another challenge in the face of fast expansion. Here are ten critical characteristics of a good bank management- 1. An open culture and extensive vertical and horizontal communication, 2. Strong shared values, 3. Profit performance as a value, 4. Customer focused business orientation, 5. Willingness to invest in new products, 6. Strong sense of direction and consistent leadership, 7. Commitment to recruit best persons, 8. Investment in training, 9. Product information system and 10. Strong credit risk management. E3. CORPORATE GOVERNANCE: There are instances where the boards have shown reluctance to ratify and adopt RBI circulated covenants on professinalization of bank boards. Corporate governance can not be enforced through regulations, it must spring from within. E4. EMPLOYEE COMPETENCY: Together with the change in organizational structure there is a need to increase employee competency also. When new entrants into the market like Mutual Funds are cutting into the business of the banks, contemporary banking is becoming more and more skill sensitive and information technology is throwing new challenges to the banking systems, employee competency has become all the more important to retain the existing business of the banks and expand it. E5. APPROPRIATE TECHNOLOGY: Well established banks are facing stiff competition from the new entrant banks in terms of use of appropriate technology that makes banking convenient. The established banks do use modern technology but are way behind in maintaining pace and are challenged by these new entrants in order to remain in business. E6. NONPERFORMING ASSETS: These are popularly known as NPA, the loans that do not perform- loans under litigation or bad loans that are doubtful of recovery. 6. 2% of loans of scheduled commercial banks were NPA and the public sector banks had to write off 42. 5% of the NPA as on 31. 3. 2002. It reflects on the quality of the loan portfolio. At 5% NPA, 17 out of 21 major banks in Japan were on the red. As per developed country standards it has to be around 2%. Hence, banks have to bring down the NPA ratio drastically. E7. DIRECTED CREDIT: NPA as discussed above is a direct result of the quality of the loan portfolio of the banks. The system of directed credit to priority sector has no doubt brought impressive performance in quantitative terms but qualitatively it has brought more loan delinquencies since the relation between credit expansion and productivity has become weak. Political interference in credit decision-making is pointed out as a factor. The populist phenomenon of ‘loan mela’ is certainly contrary to the professional appraisal of bank credit needs. What is required to improve the quality of loan is- 1. Serious appraisal of credit need, 2. Potential productive activity and 3. Effective post credit supervision. E8. RISK MANAGEMENT: Risk is intrinsic to any business; all the more to banking. Risks encountered by banks have increased with the diversity of banking business and growing sophistication of banking operations. The major risks encountered by banks are credit risk, interest rate risk, operational risk, forex risk and liquidity risk. While deregulation has opened up new vistas for banks to shore up more revenue, it has entailed greater competition and greater risks too. Hence, greater attention needs to be iven in strengthening of internal controls of risk management. E9. SICK INDUSTRIAL UNITS: Funds locked up in industrial sickness has reached a staggering 2% of the entire credit of the banking system in March 2000. When sick units have to be nursed for ‘social objectives’ banks should not be forced to suffer; actual stakeholders must bear the burden of nursing them. When sick units are nationalized for protecting the employment or they are public sector entities, govt. must give adequate compensation to the banks to cover their dues which rarely happens in reality. It is neither legitimate nor practical for the banks to nurse sick units in all circumstances. E10. PROFIT PLANNING: Banking can not run like other profit making business since excessive and unjustified profits can only be at the cost of development of the society so far as the lending rates push up the production cost and ultimately is passed on to the customer. At the same time strong operating profits allow for allocations to capital and reserves which are very much essential for any bank to maintain its competitive viability. This setback was realized in the 90’s when the nationalized banks posted declining profits. Nevertheless, concerted efforts by these banks improved the situation by 2002. Stiff competition makes the banks to work on thin interest rate margins but to increase their profitability, they have to increase their fee based non-fund services substantially. E11. CUSTOMER SERVICE: Though entry of new private banks no doubt has increased the quality of customer service, it is by and large confined to urban areas and to wealthy customers. Only the educated and wealthy customers have access to detailed information on all the banking facilities available. Customer care is very much wanting in public sector banks where the unionized employees are sure of not losing their jobs on this count. Efforts must be made to collect customer feedback on regular basis and remedy the defects pointed out if any, at the earliest wherever possible. E12. GLOBAL STANDARDS: Computerization has revolutionized in banking in India. But it has not yet made much progress in expanding it beyond the ational boundaries. Not many branches of Indian banks are found outside India. Just like its progress in Information Technology and software, India has to make good progress in the banking sector internationally since allocation of capital can not be bound by geographical bound aries. COMMERCIAL BANK A. FEATURES: Commercial banks are private or public limited joint stock banking companies registered under Indian Companies Act. There are three distinct features of a commercial bank- they accept DEPOSITS on lower cost and give CREDIT on higher cost and the cost difference between deposit and credit is their GAIN. [For more details refer features of a bank] Its capacity to earn profits depends on its investment policy which in turn depends on the manner in which it manages its investment portfolio. Portfolio management refers to prudent management of a bank’s profit, liquidity and safety. But most commercial banks have gone way ahead of their basic functions introducing a host of fee based ancillary financial services in order to maximize their profits. Thus a commercial bank now may be defined as â€Å"an institution that accepts deposits from the public on lower cost and lends it on credit on higher cost as well as offers ancillary services for a fee in order to increase its profits. † B. ROLE IN FINANCIAL SYSTEM: Commercial banks strive to earn a profit. At the same time their entire business of credit depends on public money deposited with them. Hence, they can not afford to risk public money just to increase their own profits. It is common knowledge that national level bank strikes throttle the lifeline of the nation’s economy and inflict heavy losses on the GDP. The significance of banks’ role in the financial system must be understood in the words of Walter Leaf, who says â€Å"The banker is the universal arbiter of the world’s economy† Commercial banks have to play a major role in three distinct areas- †¢ Providing fiscal liquidity to the financial system, †¢ Giving capital protection to the economy and †¢ Speeding up economic growth of the nation. B1. FISCAL LIQUIDITY: By fiscal liquidity we mean the capacity to produce cash on demand. The most important role of any bank is to provide liquidity to the financial system. Banks pool around idle money in small pockets through their wide spread branches into a large capital and redeploy it wherever needed. For better management of credit, banks like to have as much funds in liquid as possible while maximization of gain is possible only by deploying maximum available funds on credit. Both are important for the bank. Hence, bank has to strike an effective balance between them so that neither its profitability suffers nor the liquidity of the market is affected. Liquidity of the assets of the bank is planned in three stages- a. CASH is the most liquid asset. But it is an idle asset earning no returns for the bank. Yet certain percent of deposits must be always kept in reserve with the Central Bank in addition to cash in hand to meet immediate withdrawal of deposit. This is known as Cash Reserve Ratio or CRR. It is decided by the Central Bank. b. CALL MONEY is the investment in Money Market, Bond Market and Reverse Repo. # Money Market securities include short term securities like Certificate of Deposit [CD] of banks, Commercial Papers [CP] of companies, treasury bills of the govt. which give stable but low returns and long term govt. securities whose yield depend on the interest scenario. Bond Market securities include Medium Term as well as Long Term bonds of any banks or companies tradable in the secondary bond market. They are bought and sold at discount or premium and hence, their yield also depends on interest scenario. # Reverse Repo is the system through which RBI borrows from commercial banks to abs orb excess liquidity at lower interest rate. These funds are made available to commercial banks through bills repurchase under repo system on a little higher interest. These securities are the next best liquid assets but the returns from these securities are low. But it is important to select only those securities which give a fairly stable return. These securities can easily be liquidated in the Market with short notice. RBI prescribes a Statutory Liquidity Ratio or SLR for banks by which banks have to maintain certain percent of their deposits as liquid assets. c. CREDIT and investments give maximum gain to the bank but they are the least liquid. Hence, these assets should be created only in required proportion, never as a priority. Among them, short term credits are preferred by banks over long term credits for the sake of liquidity. B2. CAPITAL SAFETY: Commercial banks strive to earn profit. But this must be done through prudent ways without risking the deposits of their customers. They have an important role to play in the capital protection. Hence, 1. Protection of deposits must be the top priority for the banks. Deposit Insurance and Credit Guarantee Corporation set up by the govt. gives guarantee only up to Rupees one lakh per customer in case a bank fails and has to be closed down. 2. Banks must avoid investing in equity related instruments or giving loan for speculative business since equity market weakens capital safety to a large extent. This is required to increase stability of the capital. 3. Banks have to use self restraint in their credit to other volatile businesses like real estate, film industry, etc. Similarly they must be extra cautious while accepting volatile securities as surety for credit. 4. Banks must restrict long term credits and investments to a small percent since capital safety in short term credits is higher than the long term credits. 5. Before giving clean loans, banks must have a thorough reality check on the creditworthiness of the borrowers to repay the loan on time. 6. Banks must maintain a fair margin between their interest rates on deposits and credits. B3. ECONOMIC GROWTH: Banks have a greater role to play in the economic growth of the nation through economic development of all the sectors. Hence, they must provide more credit to developmental and productive activities than non-productive or consumption oriented activities. Basically there are three types of developmental activities- Large capital based corporate activities, medium or small capital based priority sector activities and export activity. a. CORPORATE SECTOR- While funding developmental activities, banks find it easy to provide credit to large capital based profit making corporates in industry & trade since timely repayment of credit received by them with interest is almost guaranteed. Funding is required not only for corporates but also for other sectors like industry, trade, service, infrastructure, transport, housing, power, finance, technology, etc and the banks can not overlook one sector at the expense of the other. Besides, corporate sector companies also have the capacity to increase its capital base or raise funds from the open market by issuing their own bonds. In other words they do not depend heavily on banks for their capital requirements where as others heavily depend on banks. Hence, banks must use their prudence while deciding percentages for corporate credit. Large capital companies, particularly industry contribute to the economic growth of the nation not only by increasing production but also by increasing job opportunities. But their main drawback is that they are basically profit oriented and development is a byproduct of their activity. They are reluctant to venture into non-profit sectors that are essential for a balanced growth of economy. b. PRIORITY SECTOR- For all-round and real development there are certain priority sectors of the nation that require funding assistance by the banks. They are- infrastructure development like housing, rail and road construction, power, transport, etc. as well as small scale industry, trade, technology, agriculture, etc. From the profit perspective these priority sectors may not be always lucrative. It will not be always easy for these sectors either to increase their capital or borrow from open market; they depend heavily on banks for their capital requirements. RBI has mandated 40% of the total credit of all cooperative & scheduled banks and 32% for foreign banks towards priority sector lending. Banks are allowed to invest in special bonds or investment instruments of these sectors to meet these requirements. c. AGRICULTURE SECTOR is surely a super priority sector. It must attract special attention of the banks since self sufficiency in agriculture has to be a top priority of any nation. Agricultural production is commercially unprofitable at least in Indian context. Small and medium farmers produce just enough to sustain since their personal labor in agricultural production gets them no returns. Any other production can wait, not food; it has to be produced proportional to the population irrespective of the cost. For the same reason, governments are providing subsidy and refinance facilities for agriculture. Banks must ensure that the government benefits really reach the medium and small farmers. d. EXPORT SECTOR is not an exclusive sector like corporate or priority sector. It can pervade both corporate as well as priority sectors. Economies of the world are so interdependent that each country must have enough reserves in the currencies of other countries to pay the bills for supplies received from those countries. In its absence they end up in raising foreign debt which in turn has a cost by way of interest; or else they end up in depleting nation’s gold reserves. If a country depends on foreign supplies, it must give high priority to exports to that country to strengthen their balance of payment. In such a situation banks must step in to provide credit to export activities in a preferred manner to increase county’s reserves in that currency. C. MULTIPLE CREDIT CREATION: There are two views on whether banks can create credit- †¢ One view held by Walter Leaf is that banks can not create money out of thin air. They can lend what they have in cash. †¢ Another view held by Hartley Withers is that banks can create credit by opening a deposit every time they advance a loan. It is interesting to know that in an effort to maintain lowest possible idle cash, banks end up in increasing the money in circulation without increasing tender cash currency while creating credit! In fact, credit creation is one of the most important functions of a commercial bank. They increase the purchasing power of people. Let us see how does this happen. C1. METHOD: When bank gives a loan it pre-supposes that bank has cash through deposits. From the deposit bank gives loan which in turn gets deposited in the bank account. It creates an asset as well as a deposit with the bank. The beneficiary customer can issue cheques for payments in addition to the existing customers who have originally deposited the money. Thus money available in circulation superficially becomes more than the actual tender cash currency. This is the view of practical bankers. Concrete Example: Let us presume that our country has only one bank B and all the citizens are heavily into banking making the cash requirement of B just 10%. B gets total demand deposit of R. 10000 and that is the only currency in circulation in our country. Balance sheet of B will read as follows: |LIABILITIES |ASSETS | |Deposits 10000 |Cash in Hand 10000 | |TOTAL 10000 |TOTAL 10000 | B has to maintain 10% of its deposit of 10000 which is 1000 as cash reserve. It implies that B can give 9000 as loan. It creates an additional deposit as it is released to the deposit account while creating a credit of 9000 and the new balance sheet will read thus: LIABILITIES |ASSETS | |Deposits 19000 |Cash in Hand 10000 | |