Custom paper writing service
Oklahoma! Paper Topics
Tuesday, August 25, 2020
Credit Management free essay sample
Controlling the records receivables process requests the improvement of strategies that are good with an endeavors benefits, liquidity and piece of the overall industry. Since the records receivables strategy has a wide effect, it must be overseen cautiously and surveyed often. Records receivables strategy improvement is dependent upon inward and outer business limitations and requires cautious assessment of the approaches possible effect on deals volume, money the executives targets and strategies, immediate and roundabout expense of receivables the board and client relations. When a record receivables strategy is actualized, it ought to be rethought in any event yearly, since strategy changes could be required to alter for changing inside and outer conditions, for example, changing business goals, differing serious industry guidelines, fluctuating interest and remote trade rates, expansion, quickly expanding credit volume, mechanical advances and globe exchange design patterns. Receivable is a perpetual venture and is an ever-moving record. The money director needs to decide the degree of this record appropriate so that there will be a simple progression of working capital. We will compose a custom paper test on Credit Management or on the other hand any comparable theme explicitly for you Don't WasteYour Time Recruit WRITER Just 13.90/page The administration should see that account holders turn quick. On the off chance that the debtorsââ¬â¢ turnover speed is high, at that point the firm can limit borrowings for working capital. Records receivable administration is a dynamic procedure, which considers the making of indebted individuals, and limiting the expense of borrowings of working capital because of securing of assets account receivables. Effect of receivables the executives on business Financial Impact: â⬠¢ Improved profit for receivables. â⬠¢ Increased income. â⬠¢ Generates speculation openings. â⬠¢ Increase assortment of viability. â⬠¢ Reduce receivable misconducts. Diminished activity costs. â⬠¢ Reduce organization costs. â⬠¢ Early intercession transforms peripheral records into gainful records. â⬠¢ Customized receivables administration dependent on receipt sum. â⬠¢ Productivity gain. Vital Impact (Long Term) â⬠¢ Focus on center business. â⬠¢ Better utilization of inward income. â⬠¢ Best in class capacities used. Strategic Impact (Short Term) â⬠¢ Reducing/controlling working expense. â⬠¢ Reallocation of capital assets. â⬠¢ Tapping into new assets. Receivables the executives stream graph Order preparing Order affirmation Billing and dispatch Consolidation of deals information An endeavors credit strategy is a significant, controllable component that impacts deals request and benefits. The numerous variables that include credit strategy ought to be examined before the choice is made whether to offer credit or to make changes to current arrangement. Foctors that could oblige or impact credit strategy include: capacity to back the credit strategy. Expenses of financing receivables by methods for inside or outer credit offices ought to be evaluated to figure out which approach is possible for the venture. The advancement of the endeavors credit strategy necessitates that particular choices be made with respect to a few factors that set up the terms of offer and the satisfactory degree of credit hazard. The factors are: â⬠¢ Credit guidelines â⬠¢ Credit period â⬠¢ Credit terms â⬠¢ Cash rebate and overcharges â⬠¢ Credit limits â⬠¢ Credit instruments â⬠¢ Payment techniques When actualizing or shifting the credit strategy by changing any one, or all, of the above factors, the executives must survey the effect on net gain, compute the likelihood of accomplishing the arranged outcomes, and decide the extra degree of hazard accepted. Specifically, any unwinding of credit strategy ought to be viewed as simply after exceptionally cautious assessment of the effect of the change by top administration, since it is amazingly hard to return to increasingly rigid strategies without encountering unfriendly consequences for client relations and deals. 'Credit Standards A firm has a wide scope of decision in picking the credit measures. A firm needs to choose what standard ought to be applied in tolerating or dismissing a record for credit allowing. Toward one side of the range it might choose not to stretch out credit to any client, anyway solid his FICO assessment might be. At opposite end it might choose to allow credit to all clients independent of their FICO assessment. Between these two extraordinary positions lie a few prospects, frequently the more pragmatic ones. This gives adequate extension for the Credit director/Finance administrator to assume a basic job. When all is said in done liberal credit measures will in general push deals up by pulling in more clients. This is, anyway joined by a higher frequency of terrible obligation misfortune, an enormous interest in receivables and a greater expense of assortment. Hardened credit gauges have the contrary impact. They will in general discourage deals, lessen the rate of terrible obligation misfortunes, decline the interest in receivables and lower the assortment cost. Credit Period The credit time frame is the time allotment credit is conceded (for instance, from receipt date to due date), and is typically settled by an industry standard. The credit time frame has direct effect on the expense of financing receivables and on assortment chance. An endeavor may choose for go amiss from the business gauges for at least one reasons: to acquire an upper hand, to mirror the undertakings characterization of client quality, or to longer-term monetary or business changes. The date when installment is considered to be gotten ought to be characterized. It might be founded on the envelope stamp date, the settlement handling date, or the date reserves are gotten. Clients ought to be obviously instructed with respect to the installment receipt date. Credit Terms Credit terms are typically indicated on the authoritative archives, or on the client receipt or proclamation. As often as possible utilized installment terms incorporate the accompanying: money before conveyance (CBD) or Cash on conveyance (COD) might be required when the purchaser has been named a poor credit hazard. If there should arise an occurrence of an obscure or one-time purchaser, credit check might be required when the request is put, or before the merchandise or administrations are conveyed. Money terms grant the purchaser an installment time of around 5 to 10 days and possibly utilized for high turnover or transitory products. Receipt terms regularly a net due date and a markdown due date that possibly determined from different beginning dates, for example, the receipt, conveyance or customer acknowledgment dates. The term possibly cited, for instance, as 2/10, net 30 importance an installment rebate of 2% is given if the receipt is paid inside 10 days. Full installment is required following 10 days yet inside 30 days. Occasional explanations are typically given month to month. The announcement terms might be like receipt terms and incorporate limits and intrigue charges for late installment. All receipt exchanges are recorded up to a cut-off date and installment is expected by a predefined date in the accompanying time frame. Credit limits and overcharges Cash rebate strategies might be built up for various reasons: to fit in with the business standard, to animate deals, or to facilitate receipt of money. To be a viable assortment apparatus, the markdown rate must be built up at a pace of intrigue higher than that at which the client can acquire. Thought ought to be given to the ramifications of clients taking a rebate to which they are not entitled. An additional charge, or late installment charge, can be utilized to urge brief installment and to level treatment for clients who pay on time versus the individuals who postpone installment. Credit Limit Credit limit classifications ought to be set up to arrange the absolute credit that might be conceded to clients in each credit quality grouping. To guarantee that credit limits stay fitting, given business or other significant changes, they ought to be consistently checked on. Occasional credit value reassessment can be disentangled via naturally reassigning clients to a higher credit limit level after a predetermined time of good installment experience. Credit factors, alloted by the credit grantor and weighted by relative significance, can be utilized to ascertain a solitary numerical worth that could be utilized to dole out unmistakable credit cutoff points and installment periods to various clients. The FICO rating must consistently be tempered by educated administration judgment on the grounds that the acknowledge dismiss choice certainly incorporates financial exchange offs: to limit dismissal of a satisfactory acknowledge client (with loss of future business) versus to acknowledge a poor credit hazard (and coming about obligation misfortunes). Credit Instruments Credit instruments are composed installment contracts consented to by the venture and its clients. Instruments run from straightforward solicitations to formal credit courses of action that are chosen to lessen credit chance. While choosing an instrument to be utilized, the undertaking ought to think about industry guidelines, showcase standards and purchaser dangers. The venture may pick various instruments at various occasions relying upon the item or administrations sold, the clients land area, or client quality order. The capacity to utilize various instruments gives adaptability when managing noteworthy or touchy clients and requests. Consistence with applicable customer insurance enactment may require nitty gritty revelation to the purchaser of credit instrument terms. Coming up next are the 4 significant credit instrument: 1. Open Account 2. Promissory notes 3. Restrictive deals 4. ocumentary credits Payment Methods The administration of the undertaking selling the products or administrations should guidance its clients of satisfactory installment techniques, including advance installments, money, check, Visa or electronic reserve move. The suggestions related with every technique ought to be surveyed cautiously before figuring out which installment vehicles to a
Saturday, August 22, 2020
Night World Spellbinder Chapter 6 Free Essays
string(22) the degree of humans. Kevin yelled, applauding a hand to his cheek. ââ¬Å"He cut me! This person cut me!â⬠Blood ran between his fingers. Randy lifted the razor once more. We will compose a custom article test on Night World : Spellbinder Chapter 6 or on the other hand any comparative subject just for you Request Now Thea connected with her brain. Not came to. She jumped. It was totally natural; she was terrified to death, and everything she could consider was that he was going to slaughter Kevin, and perhaps Blaise, as well. She got something. Torment and anguish and rage that appeared to be ricocheting around like a monkey in a confine. She could hold it for just a moment, however right then and there Eric threw two cups of punch in Randyââ¬â¢s face. Randy hollered and got some distance from Kevin, toward Eric. Thea felt a flood of unadulterated dread. Randy cut with the razor, yet Eric was quick; he bounced pull out of the way, hovering to get behind Randy. Randy haggled once more. They were doing a ghastly move, going all around. Thea felt as though the dread was twisting more tightly inside her with each turn. Be that as it may, Eric kept off the beaten path of the glimmering razor until a surge of development on the move floor grabbed her attention. It was Mr. Adkins and two different instructors. They joined on Randy and there was a great deal of disarray. At the point when it was finished, Randy was on the ground. Alarms cried outside, coming nearer. Eric ventured away from the heap on the floor. Breathing hard, he took a gander at Thea. She gestured that she was OK, at that point shut her eyes. She felt limp and wrung out and horrendous. They were going to remove Randy now, and she didnââ¬â¢t think there was a lot of help for him. He unquestionably appeared to be excessively far gone. At that point she was embarrassed about being a witch. ââ¬Å"All right, people,â⬠Mr. Adkins was stating. ââ¬Å"Letââ¬â¢s move out of here. Letââ¬â¢s get this spot cleared.â⬠He took a gander at Blaise, who was twisting around a situated Kevin, holding a napkin to his cheek. ââ¬Å"You two can stay.â⬠Then he put a hand on Blaiseââ¬â¢s shoulder. ââ¬Å"Are you OK here?â⬠Blaise gazed upward with wide, lamentable dark eyes. ââ¬Å"I think so,â⬠she said boldly. Mr. Adkins gulped. His hand on Blaiseââ¬â¢s shoulder pressed. Thea heard him murmur something like, ââ¬Å"Poor kid.â⬠Gracious, offer me a reprieve, Thea thought. Be that as it may, a little, childish piece of her was soothed. Blaise wasnââ¬â¢t going to get in a difficult situation over this one; neither of them would get removed. Grandmother wasnââ¬â¢t going to be disrespected before the Inner Circle. Also, Blaise seemed stressed over Kevin. She was twisting around him again thoughtfully. As though she truly minded. Thea slipped past a teacherââ¬â¢s outstretched arm. ââ¬Å"Are you okay?â⬠she murmured to Blaise. Blaise turned upward mysteriously. That was when Thea saw that she had a little vial disguised in the napkin. It was loaded with blood. ââ¬Å"Youâ⬠¦Ã¢â¬ Thea couldnââ¬â¢t discover the words. Blaise made a slight scowl that implied: I know. Be that as it may, it was simply too acceptable an opportunity to miss. Thea sponsored up and ran into Eric. He put a steadying arm around her. ââ¬Å"Is she all right?â⬠ââ¬Å"Sheââ¬â¢s fine. I need to escape here.â⬠Eric investigated her face. He was crunched: his hair mussed, his eyes dim. All he said was, ââ¬Å"Letââ¬â¢s go.â⬠They passed Vivienne and Selene in transit out. Thea needed to give them credit; the two of them looked stunned and miserable. The inquiry was, would it last? Dani was in the parking area with John Finkelstein. ââ¬Å"Iââ¬â¢m going home,â⬠she said essentially to Thea, and hurled something into a bunch of bitterbrush. It was a vacant vial. Thea felt a small uncoiling of alleviation. She contacted Daniââ¬â¢s arm gently. ââ¬Å"Thanks.â⬠Dani glanced back at the cafeteria. ââ¬Å"I wonder what it was he needed to know?â⬠she mumbled. What's more, simply then a cry originated from the lit entryway, as though addressing her inquiry. It didnââ¬â¢t sound like an individual; it seemed like a creature in anguish. ââ¬Å"Whyyyyyy?â⬠Thea turned indiscriminately and nearly ran for Ericââ¬â¢s jeep. At the point when they were driving on obscured roads, Eric said unobtrusively, ââ¬Å"Iââ¬â¢m assuming he was a former boyfriend?â⬠ââ¬Å"Last monthââ¬â¢s.â⬠Eric looked at her. ââ¬Å"He was pretty failed, poor guy.â⬠What's more, that, Thea thought, summarized it pleasantly. He was pretty wrecked for eternity. Poor person. ââ¬Å"Itââ¬â¢s Blaise,â⬠she said. She hadnââ¬â¢t intended to converse with him about this, yet the words were so packed in her throat that she thought sheââ¬â¢d burst on the off chance that she didnââ¬â¢t let them out. ââ¬Å"She does this and does this, and I canââ¬â¢t stop her. She picks folks up all over the place, and they begin to look all starry eyed at her, and afterward she dumps them.â⬠ââ¬Å"Love? Hm,â⬠Eric said. Thea saw him, surprised. He was looking straight ahead, his long, flexible fingers consistent on the wheel. Well. Furthermore, I thought you were so gullible. Perhaps you see more than I understood. ââ¬Å"Itââ¬â¢s a sort of love,â⬠she said. ââ¬Å"Itââ¬â¢s like-do you know, in old Greece they adored the goddess Aphrodite. She was the goddess of adoration and the thing about her was that she was totally merciless.â⬠Thea shook her head. ââ¬Å"I saw this play once about a sovereign named Phaedra. What's more, Aphrodite made her go gaga for her own stepson, and before the finish of the play pretty much everyone was dead on the stage. Yet, Aphrodite simply continued grinning. Since she was simply doing what a goddess does likewise way that a tornado tears houses separated or a fire torches a forest.â⬠She halted. Her chest was hurting and she didnââ¬â¢t have any breath left. Be that as it may, in a way she felt good, as though some weight had been assuaged. ââ¬Å"And you think Blaise resembles that.â⬠ââ¬Å"Yes. Kind of a characteristic power that canââ¬â¢t help itself. Does that sound totally crazy?â⬠ââ¬Å"Actually, no.â⬠Eric gave a wry grin. ââ¬Å"Natureââ¬â¢s unpleasant. Birds of prey snatch bunnies. Male lions slaughter whelps. Itââ¬â¢s a wilderness out there.â⬠ââ¬Å"But that doesnââ¬â¢t make it right. Possibly for goddesses and creatures, yet not when it gets to the degree of people. You read Night World : Spellbinder Chapter 6 in classification Exposition examplesâ⬠It was a second prior to she understood what sheââ¬â¢d said. She was utilizing ââ¬Å"humansâ⬠to mean ââ¬Å"people.â⬠ââ¬Å"Well, people arenââ¬â¢t extremely distant from creatures, after all,â⬠Eric said delicately. Thea listed back against the seat. She was as yet confounded and despondent, however what terrified her more than anything was that she felt a compelling impulse to continue conversing with Eric about it. He appeared to see so wellâ⬠¦ better than any other person at any point had. Furthermore, not exclusively to see, yet to mind. ââ¬Å"I realize what you need,â⬠Eric said abruptly, lighting up. ââ¬Å"I would recommend we go to the late smorgasbord at Harrahââ¬â¢s, yet I know something better.â⬠Thea looked at the clock, saw that it was just about eleven: ââ¬Å"What?â⬠ââ¬Å"Puppy therapy.â⬠ââ¬Å"What?â⬠He just smiled and turned the jeep south. They pulled up at an unobtrusive dim structure with a sign that read sun city creature medical clinic. ââ¬Å"This is the place you work.â⬠ââ¬Å"Yup. We can let Pilar off early,â⬠Eric stated, getting out and opening the front entryway of the structure. ââ¬Å"Come on.â⬠A pretty young lady with medium length earthy colored hair gazed upward from behind the workplace counter. Thea perceived her as Pilar Osorio from school. A tranquil young lady who resembled a decent understudy. ââ¬Å"How was the dance?â⬠she said. Thea thought her eyes waited on Eric insightfully as she said it. Eric shrugged. ââ¬Å"Pretty dreadful, to come clean. There was a battle and we left.â⬠Thea saw he didnââ¬â¢t notice his part in halting the battle. ââ¬Å"How awful,â⬠Pilar said thoughtfully however Thea thought she wasnââ¬â¢t completely grieved that the move hadnââ¬â¢t worked out in a good way. ââ¬Å"Yeah. So howââ¬â¢s our boy?â⬠ââ¬Å"Okay-a little hyper. You should go for him for a stroll later.â⬠Pilar got her coat. She gestured amenably to Thea as she set out toward the entryway. ââ¬Å"See you Monday.â⬠She enjoys him. At the point when the entryway was closed, Thea checked out the workplace. ââ¬Å"So the clinicââ¬â¢s not open.â⬠ââ¬Å"No, however someone needs to remain for the time being when weââ¬â¢ve got creatures loading up here.â⬠He gave her the smile once more. ââ¬Å"Follow me.â⬠He drove her through a test room into a hallway and afterward to a pet hotel room at the back. Thea glanced around with intrigue. Sheââ¬â¢d never been in the inward sanctum of a creature medical clinic previously. There were a few pooch runs. Anxious whimpering was originating from the last. Eric took a gander at her wickedly. ââ¬Å"Three, two, oneâ⬠¦Ã¢â¬ He opened the enclosure. A major Labrador little dog tumbled out, tail swaying wildly. He was a wonderful shading that went from profound gold on his back to practically white on his legs and paws. ââ¬Å"Hey, Bud,â⬠Eric said. ââ¬Å"Hey, buddy; whoââ¬â¢s a decent boy?â⬠He took a gander at Thea seriously. ââ¬Å"This is a definitive snuggle dog.â⬠Thea fallen on the sheet vinyl floor and made a lap, holding the two arms out. ââ¬Å"Uh-your dress-â⬠Eric started gently, yet the doggy was at that point in midair. Thea got him and he crept up her, legs on her shoulders, hot breath blowing in her ear. ââ¬Å"I think Iââ¬â¢m in love,â⬠Thea panted, her arms loaded with warm, substantial doggy pleasantness. Satisfaction encompassed her. She didnââ¬â¢t need to attempt to converge with the puppyââ¬â¢s mind; he for all intents and purposes took over forcibly. Every one of his musings were acceptable ones, and they were about at this point. About how staggering everything smelled this moment, and how incredible that scratch behind the ear felt on a fleabite. Nice sentiments, glad feelingsâ⬠¦ I truly like this
Monday, August 3, 2020
Going to Your First 12-Step Meeting
Going to Your First 12-Step Meeting Addiction Coping and Recovery Methods and Support Print Going to Your First 12-Step Meeting By Buddy T facebook twitter Buddy T is an anonymous writer and founding member of the Online Al-Anon Outreach Committee with decades of experience writing about alcoholism. Learn about our editorial policy Buddy T Updated on November 29, 2019 ZenShui/Alix Minde / Getty Images More in Addiction Coping and Recovery Methods and Support Overcoming Addiction Personal Stories Alcohol Use Addictive Behaviors Drug Use Nicotine Use What can you expect when you attend a 12-step or Alcoholics Anonymous meeting? If youve never attended one, you likely have fears and reservations. Often, your only exposure is through what youve seen depicted in movies or television shows. What is the reality? Common Myths and Preconceptions These things you may think happen at 12-step meetings, but may by myths rather than typical occurrences. You will be surrounded and by helpful alcoholics.You have to stand up and say, I am an alcoholic.You have to tell all of your secrets surrounding my addiction to alcohol.You have to participate in group hugs.You have to pray.You are joining a cult.You might see people you recognize. The First Meeting What is the reality for most meetings? The meeting might be held in a building connected with a church or a community center. You arrive to find most of the people you see are there for the Alcoholics Anonymous meeting. Outside of the room are a few folks making coffee and talking. Inside the room, there are people sitting here and there; some talking together, some sitting alone. You take a seat by the door (just in case you want to make a quick exit) and as people passed by, some say hello, some nod, some stop and introduce themselves, and some keep to themselves. After about 10 minutes, there are 50 people who are seated in a semi-circle of chairs. One person sits in the middle of the circle. She is the meeting chairperson for that particular day. How It Works The meeting begins with the chairperson reading the AA Preamble, then leading a group prayer, the Serenity Prayer (short version), which about 80 percent of the people recite. Afterward, different members of the meeting read brief AA literature, How It Works, the Twelve Traditions and The Promises. The chairperson asks if there are any newcomers, or first-timers, attending the meeting who would like to introduce themselves by their first name. A few raise their hands. You may or may not be one of them as this is an option and not mandatory. Step Study Meeting The meeting might be a Step Meeting. The chairperson announces which step they would be discussing. After the step chapter is read from the book, Twelve Steps and Twelve Traditions, the chairperson asks if anyone had any experience, strength, or hope relating to the step that they would like to share. Sharing Experience, Strength, and Hope During the meeting, people simply begin talking. Each starts off by introducing themselves as, Hello, my name is (first name) and Im an alcoholic. Just as in the movies, everyone responds with, Hello (first name)! After they complete their story everyone in the room thanks them. Then the next person can speak up. After everyone completes sharing, the chairperson asks if there are any AA-related announcements. Then she announces that it is time for the Lords Prayer, and everyone stands in a large circle, holding hands, and recites the prayer. You do not have to participate in the prayer. Once the prayer is over, the meeting ends. Meeting After the Meeting People gather, talking, and there is a social air now to the meeting. Some may introduce themselves to you and may ask questions. You are free to leave if you dont want to socialize. Different Meeting Formats Different meetings have different ways of doing things but for the most part, they run the same. In some meetings, people are randomly called on, the thinking is, that it prevents the same people from constantly sharing overriding the more shy, quieter people. In other meetings, at the end of the prayer, everyone may say a popular AA slogan, such as, meeting makers make it. Some meetings are purely discussion meetings where the topic is random and more derived by an interest that one of the members may have. Speakers meetings feature a person chosen to talk about their experience, strength, and hope in regard to their recovery. One member, Barb M., relates that the thing she was most relieved about was the non-imposing feel that she got when she first began attending meetings. No one bombarded me with his or her religious slogans, no one pestered me to hold hands and pray, no one cared if I sat in the back or sat in the front, drank coffee or didnt drink coffee, helped clean up or ran off before the meeting ended. The only set rules are those of common respect which may include: Try to be on time. No smoking. No cross-talk during shares. Have court vouchers signed at the end of a meeting. You may indeed run into someone you recognize or who recognizes you. The Helping Hand of AA Barb M. says she waited for many meetings before making the decision to introduce herself as an alcoholic and to accept her first chip. One common practice is that when you introduce yourself to the group as a newcomer and an alcoholic, you will receive a meeting schedule book with the names and numbers of people who you can call if you feel the need to drink and need help. People who put their number in this book do so because they really do want to help. It isnt required of anyone to do so but it keeps with the tradition of AA that when alcoholic calls for help, the helping hand of AA will be there. If you arent sure if you are an alcoholic, find an open meeting to attend in your area. Many non-alcoholics may attend these and no one assumes because you are there that you are alcoholic.
Saturday, May 23, 2020
Society Has Been Wrongly Judging The Behavior Of Others...
ââ¬Å"Society has been wrongly judging the behavior of others for centuriesâ⬠(ââ¬Å"Dr. Sex discusses societal conventions, BDSMâ⬠). For decades practitioners of BDSM have been judged because of the way they choose to live their lives. When one hears or thinks of the acronym BDSM, there are stigmas that they think of as well. ââ¬Å"By stigma, we mean that a person is recognized or labeled as having ââ¬Ëundesired differentness from what we had anticipatedââ¬â¢Ã¢â¬ (Hoff). Practitioners of BDSM have always faced these stigmas, and because of this fact, practitioners have been forced to hide the way they live. Not only have these stigmas caused practitioners to keep their personal affairs private, but it has caused non-practitioners to treat those who practice BDSMâ⬠¦show more contentâ⬠¦Sexâ⬠). When people think about BDSM their thoughts are usually negative, associating BDSM purely with pain, but ââ¬Å"the idea that all BDSM play involves pain is a common misconception: many play activities are focused not on pain, but rather on psychological power exchangeâ⬠(Hebert). Usually, stigmas are accepted by the general public, but according to Hebert, the stigmas about BDSM are usually accepted by medical and legal professionals as well. ââ¬Å"In particular, it is commonly believed that those who participate in BDSM must be psychologically disturbed.â⬠Because of these stigmas associated with BDSM, people act and treat BDSM practitioners differently than those who do not practice BDSM. In a study done by Ali Hebert and Angela Weaver, there were several benefits and disadvantages discovered when discussing BDSM with several practitioners of BDSM. The very first disadvantage listed in Hebert and Weaverââ¬â¢s study were the stigmas placed on BDSM. A prominent challenge for many of the participants was discrimination...one submissive expressed anguish at the unkind words of an acquaintance who mocked BDSM practitioners to her face without knowing that she shared such proclivities. One man simply stated ââ¬Å"Iââ¬â¢ve been told that Iââ¬â¢m going to Hell.â⬠Fear of being mocked, prosecuted, or even ââ¬Å"witch-huntedâ⬠led participants to feel that they hadShow MoreRelatedThe Occurrence Of Racial Discrimination2409 Words à |à 10 Pagesplays a gigantic role in the population of the 21st century. People of all ages use apps or websites such as Twitter, Facebook, Snapchat, or Instagram to communicate with people all over the world. New apps such as Hot or Not was created for people to upload pictures of themselves and have their appearance evaluated by complete strangers. Engaging in activities such as this is an example of consciously self-judging. When reflecting on what others think about oneââ¬â¢s self creates mental problems thatRead MoreThe Case of Shylock vs. Antonio in The Merchant of Venice3461 Words à |à 14 Pageswould have generated better results when considering m atters from a logical point of view. The character of Shylock is certainly not one of the fairest individuals, but he considers that contracts are one of the most important factors assisting society in being organized. The fact that he is a Jew makes it difficult for him to conduct his daily activities without being persecuted and he is determined to have his oppressors pay for what they do. Although one might be inclined to believe that he takesRead MoreIwc1 Literature, Arts and Humanities Essay10028 Words à |à 41 Pagesmonastic upper class. Feedback: The correct answer is c. Chinese humanism elevated intellectual life over religious faith. Question 3: Multiple Choice The heros journey has been called a ______________. a) stereotype b) monomyth c) cultural myth d) legend Feedback: The correct answer is b. The heros journey has been called a monomyth or a world myth. Question 4: Multiple Choice ______________ reasoning proceeds from particular facts to a general conclusion (or from effect to cause)Read More Socrates Last Error Essay examples3184 Words à |à 13 Pagesrepresents one of the greatest myths in the history of philosophy. Contrary to this widely accepted myth, I will try to demonstrate that Socrates argument was erroneous, which made his decision less rational. In fact, had he decided to escape, his behavior would not have represented an unjust act. Although his argumentation and dialogue with Crito seem more like a moral sermon, his ideas are based on some deeper philosophical problems. In fact, Socrates argument, developed in Crito, belongs to theRead MoreNew World Order in Conspiracy Theory13987 Words à |à 56 Pages------------------------------------------------- New World Order (conspiracy theory) This article is about the use of the termà New World Orderà in conspiracy theory. For other uses, seeà New World Order (disambiguation). The reverse side of theà Great Seal of the United Statesà (1776). The Latin phrase novus ordo seclorum, appearing on the reverse side of the Great Seal since 1782 and on the back of theà U.S one-dollar billà since 1935, means New Order of the Ages and only alludes to the beginningRead MoreExistentialism vs Essentialism23287 Words à |à 94 Pagesessence of their lives. Existentialism asserts that ââ¬Å"existence precedes essence,â⬠which is in opposition to the classical doctrine that ââ¬Å"essence precedes existence.â⬠The claim ââ¬Å"existence precedes essenceâ⬠is a rejection of the idea that human nature has an end or goal. In this sense, humans are free to choose their own destiny.à * is a philosophical term which asserts that there is a distinction between essential and non-essential (contingent or accidental) characteristics of an object. EssentialismRead MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words à |à 1573 PagesOrganizational Behavior This page intentionally left blank Organizational Behavior EDITION 15 Stephen P. Robbins ââ¬âSan Diego State University Timothy A. Judge ââ¬âUniversity of Notre Dame i3iEi35Bj! Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editorial Director: Sally Yagan Director of Editorial Services:Read MoreA Picatrix Miscellany52019 Words à |à 209 Pagesmanuscript 3679) passed down from Simon Forman (d. 1611) to Richard Napier (d. 1634) to Elias Ashmole (d. 1692) to William Lilly (d. 1681). E.M. Butler wrongly associates it with Gio. Peccatrix, (no doubt a pseudonym) who edited an Italian version of the Key of Solomon (British Library, Sloane manuscript 1307). Misled by some comments by Mathers and others, Dr. Butler incorrectly concluded that the Picatrix was ââ¬Å"an Italian edition of the Clavicle, strongly impregnated with black elementsâ⬠(Ritual MagicRead MoreDeveloping Management Skills404131 Words à |à 1617 Pagesmymanagementlab is an online assessment and preparation solution for courses in Principles of Management, Human Resources, Strategy, and Organizational Behavior that helps you actively study and prepare material for class. Chapter-by-chapter activities, including built-in pretests and posttests, focus on what you need to learn and to review in order to succeed. Visit www.mymanagementlab.com to learn more. DEVELOPING MANAGEMENT SKILLS EIGHTH EDITION David A. Whetten BRIGHAM YOUNG UNIVERSITY Read MoreFundamentals of Hrm263904 Words à |à 1056 PagesMotivating Knowledge Workers 7 Paying Employees Market Value 8 Communications 8 Decentralized Work Sites 8 Skill Levels 8 A Legal Concern 8 Employee Involvement 20 How Organizations Involve Employees 20 Employee Involvement Implications for HRM 20 Other HRM Challenges 21 Recession 21 Off Shoring 21 Mergers 22 A Look at Ethics 22 Summary 23 Demonstrating Comprehension: Questions for Review 24 Key Terms 24 HRM Workshop 25 Linking Concepts to Practice: Discussion Questions 25 Developing Diagnostic and
Monday, May 11, 2020
A Word on Awards
When it comes to the literature and to the arts in general, it is hard to judge, what is beautiful and creative and what is horrible and tasteless. What was popular and admired yesterday, might be called tawdry later. Besides, todayââ¬â¢s concepts of art are quite blurred: one person writes a long novel with thrilling sudden twists in plot and charismatic heroes and deep philosophical insight, while the other thinks of 2 lines only and publishes them in a book of 300 pages, 299 of which are completely blank and both of them consider their books to be the works of art. Moreover, literature critics also consider both of them as writers. Perhaps the modern concepts of art are one of the causes of anxiety and mistrust towards the literature prizes. And we are not only talking about the readers, who often judge the quality of the books differently than professional critics. We are talking about writers. About those, who got the awards and those, who did not. What do they say? After Mary Lee Settle, the novelist, won the National Book Award, she commented on it: ââ¬Å"One of the most unpleasant experiences I have ever had.â⬠That surely does not sound as total satisfaction with judgment of the critics. The problem is that often, for one or another reason, critics approve those works, which their authors do not consider as great ones. At the same time, critics often leave real masterpieces without any award. And that, according to June Jordan, the writer and activist, the only kind of validation that makes sense in the literary world. He said these bitter words as Toni Morrisonââ¬â¢s novel, ââ¬Å"Belovedâ⬠, did not win the National Book Award. Why would there be so much fuss about the literary awards? Is it so hard to distinguish mediocrity from talent? And that is where the shoe pinches. The arguments on whether fair or unfair the award was will never stop, becauseâ⬠¦ what right do the critics have to define, which book is better than the other? How do readers define, whether criticsââ¬â¢ taste is flawless? There is no single standard of a perfect book. That means, that, for example, the Nobel Prize (a huge amount of money, by the way) is usually given to some lucky guy, whose book may not be the best among the works of other candidates, but it simply may be relevant to the taste of critics. Can we do anything so that literary awards could be more fair? Itââ¬â¢s highly doubtful. But, at least, the fact, that awards are given away subjectively, allows those writers, who consider themselves unrecognized geniuses, dream of the day, when the readers will suddenly realize, how talented their works are.
Wednesday, May 6, 2020
Resource Leveling Free Essays
Resource Leveling Resource leveling is the process that ensures resource demand does not exceed resource availability. The ideal scenario would be a build up of resource usage at the beginning of the project and a reduction at the end of the project. However, the approach to resource leveling will also depend on whether resources are dedicated to a particular project or shared across several projects and whether there is a need to keep all resources fully utilized. We will write a custom essay sample on Resource Leveling or any similar topic only for you Order Now Introduction: Resource leveling is a technique in project management that overlooks resource allocation and resolves possible conflict arising from over allocation. When project managers undertake a project, they need to plan their resources accordingly. This will benefit the organization without having the face conflicts and not being able to deliver on time. Resource leveling is considered one of the key elements to resource management in the organization. An organization starts to face problems if resources are not allocated properly i. e. some resource may be over allocated whilst others will be under allocated. Both will bring about a financial risk to the organization. The Two Key Elements of Resource Leveling: As the main aim of resource leveling is to allocate resource efficiently, so that the project can be completed in the given time period. Hence, resource leveling can be broken down into two main areas; projects that can be completed by using up all resources which are available and projects that can be completed with limited resources. Projects which use limited resources can be extended for over a period of time until the resources required are available. If then again, the number of projects that an organization undertakes exceeds the resources available. Then itââ¬â¢s wiser to postpone the project for a later date. Structure of Resource Leveling: Many organizations have a structured hierarchy of resource leveling. A work based structure is as follows. * Stage * Phase * Task/ Deliverable All of the above mentioned layers will determine the scope of the project and find ways to organize tasks across the team. This will make it easier for the project team to complete the tasks. In addition, depending on the three parameters above, the level of the resources required (seniority, experience, skills, etc. ) may be different. Therefore, the resource requirement for a project is always a variable which is corresponding to the above structure. Establishing Dependencies: The main reason for a project manager to establish dependencies is to ensure that tasks get executed properly. By identifying correct dependencies from that of incorrect dependencies allows the project to be completed within the set time-frame. Here are some of the constraints that a project manager will come across during the project execution cycle. The constrains a project manager will face can be categorized into three categories. * Mandatory: These constraints arise due to physical limitations such as experiments. * Discretionary: These are constraints based on preferences or decisions taken by teams. External: Often based on needs or desires involving a third party. The Process of Assigning Resources: For resource leveling to take place, resources are delegated with tasks (deliverables) which needs execution. During the starting phase of a project, idealistically the roles are assigned to resources (human resources) at which point the resources are no t identified. Later these roles are assigned to specific tasks which require specialization. Leveling of Resources Resource leveling helps an organization to make use of the available resources to the maximum. The idea behind resource leveling is to reduce wastage of resources i. . to stop over allocation of resources. Project manager will identify time that is unused by a resource and will take measures to prevent it or making an advantage out of it. By resource conflicts, there are numerous disadvantages suffered by the organization, such as: * Delay in certain tasks being completed * Difficulty in assigning a different resource * Unable to change task dependencies * To remove certain tasks * To add more tasks * Overall delays and budget overruns of projects Resource leveling Techniques: Critical path is a common type of technique used by project managers when it comes to resource leveling. The critical path represents for both the longest and shortest time duration path in the network diagram to complete the project. However apart from the widely used critical path concept, project managerââ¬â¢s use fast tracking and crashing if things get out of hand. * Fast tracking: This performs critical path tasks. This buys time. The prominent feature of this technique is that although the work is completed for the moment, possibility of rework is higher. * Crashing: This refers to assigning resources in addition to existing resources to get work done faster. Associate with additional cost such as labor, equipment etc. Conclusion: Resource leveling is aimed at increasing efficiency when undertaking projects by utilizing the resources available at hand. Proper resource leveling will not result in heavy expenditure. The project manager needs to take into account several factors and identify critical to non critical dependencies to avoid any last minute delays of the project deliverables. Why is there a need for resource leveling? If resources are not leveled, resources are either over allocated or under allocated (or both). Overallocation means the scheduled work is not likely to occur (or the resource may be annoyed, overworked or burned out). Under allocation means suboptimal utilizing and billing of resource, lowering of profitability. Lastly, your schedule wonââ¬â¢t be accurate, unless resources are correctly loaded. Over-allocation can occur as the result of various events: * Increased work on a task that causes the finish date to overlap with another already assigned task. * A forecasted finish that causes a task to slip also delaying a successor dependency to start late. Full time assignments to tasks that start and end at the same time or overlap. In the perfect world of dedicated project resources, resolving these conflicts is more a decision of whether the project schedule has sufficient slack to accommodate leveling or whether the current schedule is not constrained by hard finish dates. In organizations that share resources across projects the contention for critical resources and trying to ensure that they are aligned with most important initiatives often leaves project plans with over-allocations that are not only impossible to meet but also impossible to deliver. Read also: Conveyor Belt Project How to cite Resource Leveling, Essay examples
Thursday, April 30, 2020
Islamic Banking
In simple terms, Islamic banking is a banking system that functions according to the guidelines laid down by the Shariah (Islamic law). ââ¬Å"Islamic banking is banking based on Islamic law (Shariah). It follows the Shariah, called fiqh muamalat (Islamic rules on transactions). The rules and practices of fiqh muamalat were incorporated from the Quran, the Sunnah and other secondary sources of Islamic lawâ⬠(Banking Info par.1).Advertising We will write a custom assessment sample on Islamic Banking specifically for you for only $16.05 $11/page Learn More There are two basic principles on which the whole Islamic banking is based on. The first one is that in a partnership firm if the partners are ready to share the profits they should be ready to share the losses as well. In Islamic terms, this principle is called Mudharabah. The second principle prohibits the account holders to either pay or receive interest (Riba) on money borrowed or lent respectiv ely. The Islamic banks also follow these principles in their own transactions. One might think that if no interest is to be given or taken then how the Islamic banking functions. Well, for this problem there is a solution in the Islamic banking system that the borrower can pay an amount (as agreed upon by the two parties) to the lender as a benefit. Now, since the Islamic banking is based on the Shariah, all the transactions are bound to follow the Islamic moral codes of conduct. As such, there is a prohibition to investments or doing businesses engaged in intoxicating products such as alcohol, games such as gambling and foods such as pork. Historical context of islamic banking The past of Islamic banking may be better understood if it is explained in two different parts; first, when there was only the idea of an interest-free banking and second, when the idea was conceived into being by some private inventiveness is some nations and by the government initiative in some others. The earlier scholars (in 1950s) promoted the idea of interest free banking and called it the Islamic banking system. The ensuing two decades witnessed further interest among people towards this kind of banking. The advent of 1970s witnessed the participation of institutions in this sector. ââ¬Å"Conference of the Finance Ministers of the Islamic Countries was held. The involvement of institutions and government led to the application of theory to practice and resulted in the establishment of the Islamic banksâ⬠(Hannan par. 10). Owing to the efforts of the conference attendees, Islamic Development Bank (IDB) came into being in the year 1975.Advertising Looking for assessment on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More ââ¬ËThe Islamic Bankerââ¬â¢ claims that, ââ¬Å"The first model of Islamic banking system came into picture in 1963 in Egypt. Ahmad Al Najjar was the chief founder of this bank and the key fea tures were profit sharing on the non-interest based philosophy of the Islamic Shariahâ⬠(The Islamic Banker par. 3). Also, ââ¬Å"In 1974, the Organization of Islamic Countries (OIC) had established the first Islamic bank called the Islamic Development Bank (IDB). The basic business model of this bank was based on providing financial assistance and support on profit sharing basisâ⬠(The Islamic Banker par. 3). It further claims that, ââ¬Å"By the end of 1970, several Islamic banking systems had been established throughout the Muslim world, including the first private commercial bank in Dubai (1975), the Bahrain Islamic Bank (1979) and the Faisal Islamic Bank of Sudan (1977)â⬠(The Islamic Banker par. 4). 1963-75 1983-84 1985-89 1991-2005 2005 onwards First Islamic bank came into picture in 1963 Iran introduced 100% Islamic banking system In 1985, Fiqh council declared Islamic insurance as Shariah compliant Accounting Auditing Organization for Islamic Financial Institutions (AAOIFI) and Islamic Financial Service Board (IFSB) are established in Malaysia for establishing standards Islamic finance is posting double digit growth at global world. The first private Islamic commercial bank, Dubai Islamic Bank, was launched in 1975 Sudan also launched it in the country In 1989, Sudan introduced 100% Islamic banking Table 1: Brief history of Islamic banking Source: www.shariah-fortune.com Table 2: Detailed history of Islamic banking, Source: (Ariff and Munawar 75). The basis of islamic banking and its organs As mentioned earlier in the paper, Islamic banking is based on the principles laid down in the Shariah. The two main pillars of Islamic banking are profit sharing and taking or giving no interest. The process is very simple that a person deposits his/her money in an Islamic bank and the bank in turn gives an assurance of returning the money when required.Advertising We will write a custom assessment sample on Islamic Banking specif ically for you for only $16.05 $11/page Learn More The depositor can withdraw his/her money from the bank whenever required (within the working hours of the bank). But since nowadays there are ATMs all over, money can be withdrawn whenever required. In lieu of offering services to their clients, Islamic banks charge a certain amount as fee and if the bank considers it feasible the depositors may be offered gift (Hibah) as well. Following are the different organs of Islamic banking: Mudharabah or the profit sharing system. Mudharabah is basically a banking system that involves sharing of profit between two entities. In these two entities, one is the bank and the other may be either an investor or a borrower. There are two ways in which the transaction is carried out. In the first method, the bank acts as an entrepreneur and accepts investment from an investor. In the second method, the bank acts as a lender and lends money to a borrower. In both the cases, th e ratio of profit sharing is fixed prior to the commencement of the banking relation or transaction. ââ¬Å"Losses suffered shall be borne by the capital providerâ⬠(Banking Info p. 6). Following is a flow chart that depicts the Mudharabah or the profit sharing system followed by Islamic banks: Figure 1: Functioning of Islamic banks Source: www.bankinginfo.com Deferred payment sale system or Baiââ¬â¢ Bithaman Ajil (BBA). Under this system, the buyer of any goods sells the goods and then pays the seller the amount including a pre-decided profit margin. This amount may be paid either as a total amount or in instalments, whatever has been agreed upon. The actual practice is that an entity identifies the goods to be purchased and the bank is requested for a BBA (Baiââ¬â¢ Bithaman Ajil) or deferred payment sale.Advertising Looking for assessment on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The entity assures the bank to buy back the goods from the bank at an increased value. The bank in turn buys the goods and pays the seller. Now the bank is the owner of the goods. Reasonable profit (as agreed upon with the entity) is added to the cost of the goods and the goods are then sold to the entity. Now the entity is the owner of those goods and pays the bank in instalments within a stipulated time frame. Following is a flow chart of the deferred payment sale system followed by Islamic banks: Figure 2: Deferred payment sale system Source: www.bankinginfo.com Murabahah or the cost plus system. We have seen that in BBA, the price at which the bank sells the goods to the entity is inclusive of a mutually pre-decided profit margin. But according to the Murabahah system, the seller (bank) has to make the buyer aware of the actual cost of the goods and the profit added to the cost. This has to be done at the time of making the agreement. Musyarakah or the joint venture system. The Musyarakah system deals with the partnerships or joint ventures. Joint ventures are done in order to make profit but there are times when the joint venture has to face losses. In joint ventures, the parties involved invest in some proportion. The profits in a joint venture need not be shared according to this proportion but the profit sharing proportion can be different and pre-decided. On the contrary, in case of losses, the losses have to borne by the parties involves according to the proportion of their investments. Ijarah Thumma Baiââ¬â¢ or hire purchase system. The Ijarah Thumma Baiââ¬â¢ system usually refers to consumer goods financing, vehicles more commonly. This system involves two different contracts; Ijarah and Baiââ¬â¢. The Ijarah contract is for leasing and renting and the Baiââ¬â¢ contract is for purchasing. Following is a flow chart that depicts the system of Ijarah Thumma Baiââ¬â¢: Figure 3: Ijarah Thumma Baiââ¬â¢ system Source: www.bankinginfo.co m Wakalah or the power of attorney system. The Wakalah system refers to an agency of any product or service in which the agency charges a pre-decided fee for the services being rendered. The agency acts as an agent of the principal party for performing explicit jobs. Qard or interest free loan. The Qard system refers to the loan given by any lender for a specific duration to the borrower without any interest being charged. The borrower has to repay the loan amount within the specified time frame. Even though there is no interest levied in this kind of ending, the borrower can pay to the lender any amount of his/her will but there is no compulsion. Hibah or the gift system. In Hibah system, any entity that has been benefitted from another person or a body may pay to that person or body any amount as a token of gratitude. The following table depicts the principles followed by some of the major countries where Islamic banks function: Country Category Profit and loss sharing syste m Fees or charge based system Fees services system Ancillary system Bahrain Musharaka Morabaha Commission Service charges Qard Hassan Bangladesh Al-Mudaraba Musharaka Bai-Muaââ¬â¢zzal Bai-salam Hire-purchase Ijara Murabaha Commission Service charges Qurd-e-Hasana wadiah Iran Civil partnership Legal partnership Direct investment Modorabah Mozaarah mosaqat Forward delivery Transaction Investment sales Joââ¬â¢alah Debt trading Hire-purchase Qard-al-Asanah Jordan Mudaraba musharaka Morabaha Commission Service charges Al-qird Al-hassan Wadiah Kuwait Mudaraba Musharaka Morabaha Commission Service charges Istisna leasing Qard-Hassan Malaysia Al-Mudharabah Al-Musyarakah Al-Murabahah Bai-Bithaman Ajil Bai Al-Dayn Al-Ijarah Al-Ijarah Thumma Al-Bai Al-Wakalah Al-Kafalah Al-Hiwalah Al-Ujr Al-Qardhul Hasan Ar-Rahn Al-Wadiah Yad dhamanah Pakistan Mushrika Equity participation and purchase of share Participation term certificate (PTC) Modarabah certificate Rent sharing Mark- up purchase of trade bills Buy-back arrangement Leasing Hire-Purchase Development charges Loan with service charges Qard-e-Hasna Sudan Mudaraba Musharaka Morabaha Ijara Commission Service charges Qard Hassan Tunisia Mudaraba Musharaka Morabaha Taajir Commission Instalment sales Interest free Turkey Mudaraba Musharaka Morabaha Ijara Irara Wa-Iktina Commission Service charges Interest free trust UAE Mudaraba Musharaka Morabahat Service charges Qard Hassan Table 3: Islamic banking principles in different countries Source: as cited at http://islamiccenter.kau.edu.sa Legal and illegal banking practices based in islamic banking Except Sudan, Iran and Malaysia, there are no other countries where Islamic banks have legal cover. ââ¬Å"In general, legislative needs for Islamic banking can be minimized by legislating the Shariah principles and the Shariah restrictions for contracts while leaving practical details for adjudication by the courtsâ⬠(Tahir p. 8). Tahir further suggests that, ââ¬Å"Registration requirements associated with agreements need to be simplified as the associated costs may impede lease financing. There is also need for special legal cover in order to facilitate and implement Musharakah (partnership) agreements by Islamic banksâ⬠(Tahir p. 8). Since the Islamic banking system is governed by the Shariah, the framework is different from the non-Islamic or conventional banks. Since the Islamic banks follow the no-interest policy, the documentation of financial instruments is totally different and as such they cannot be compatible with the non-Islamic banks. The need of the hour is that the governments of countries where Islamic banks are functioning should come out with some legal cover for the Islamic banks in order to make the Islamic banks more sustainable. Only then the Islamic banks will be able to function worldwide. But as a matter of fact, Islamic banks have improved their standards during the years. Anees Sultan claim s that, ââ¬Å"Investments into some Islamic funds are not always 100 percent ââ¬ËIslamicââ¬â¢. Some of the terms under which some funds operate state that interest income shall constitute less than a certain percentage of total income, but some interest income is acceptedâ⬠(Sultan par. 6). One might wonder that if interest is prohibited in Islam, how such instances are occurring. The board members of the Shariah are paid compensation for favouring judgements (Sultan par. 7). ââ¬Å"Also consider the word Sukuk ââ¬â now used to describe Islamic structured bonds. The word itself has nothing Islamic or religious about it; it is simply Arabic for a promissory note. Likewise, both Murabah and Takaful are just Arabic nouns for various commercial or social activitiesâ⬠(Sultan par. 7). Another action of the Islamic banks that raise eyebrows is their dealings with the commercial or conventional banks. There are some conventional banks that have started Islamic banking branches and in these branches, conventional banking products as well as Islamic banking products are being offered. Now how can one believe that the transactions in such banks would be interest-free? Comparison of islamic banking and conventional banking In some countries, due to the cosmopolitan nature, there are Islamic banks as well conventional banks. These banks perform all the financial transactions as may be expected from a financial institution. The Islamic Financial Institutions support the world economy by providing all the required services. The basic concept of Islamic banks and conventional banks is the same. Both are engaged in providing their customers banking products such as saving and current accounts, fund transfer, safety lockers, international trading, etc. Islamic banks donââ¬â¢t have any objection in performing such tasks because they are not against the Shariah. The main difference between Islamic banks and conventional banks exists in the manner in which funds are mobilized in Islamic banks and conventional banks. By mobilizing funds it is meant the investments and loan disbursements. For the purpose of comparison of conventional banking system and Islamic banking system, we have considered the following two banks: Faysal Bank as the conventional bank and Meezan Bank as the Islamic bank. Faysal Bank First let us know about Faysal Bank. ââ¬Å"Faysal Bank Limited was incorporated in Pakistan on October 3, 1994, as a public limited company under the Companies Ordinance, 1984â⬠(Faysal Bank). The bank is presently engaged in commercial activities and banking products such as deposit accounts, vehicle loans, loans on property, etc. Vision of Faysal Bank: ââ¬Å"Excellence in all that we doâ⬠(Faysal Bank). Mission of Faysal Bank: ââ¬Å"Achieve leadership in providing financial services in chosen markets through innovationâ⬠(Faysal Bank). Meezan Bank Talking of Meezan Bank, ââ¬Å"Meezan bank Limited, a publicly listed company, is the first and largest Islamic Bank in Pakistan and one of the fastest growing banks in the history of banking sector of the countryâ⬠(Meezan Bank). Vision of Meezan Bank: ââ¬Å"Establish Islamic banking as banking of first choice to facilitate the implementation of an equitable economic system, providing a strong foundation for establishing a fair and just society for mankindâ⬠(Meezan Bank). Mission of Meezan Bank: ââ¬Å"To be a premier Islamic bank, offering a one-stop for innovative value-added products and services to our customers within the bounds of Shariah, while optimizing the stakeholdersââ¬â¢ value through an organizational cultureâ⬠¦Ã¢â¬ (Meezan Bank). In order to compare the products of both the banks, the following table will be helpful: Meezan Bank Faysal Bank Current account Current account Riba free current account Faysal Sahulat Savings account Savings account Riba free ââ¬â Rupee saving account Faysal savin gs account Riba free ââ¬â dollar saving account FCY saving plus Meezan Bachat account Faysal Mahfooz Sarmaya Meezan Business Plus account Faysal Premium Karobari Munafa account Faysal Moavin Labbaik Saving Aasaan Faysal Market link Rozana munafa plus account Consumer financing Consumer financing Car Ijarah ââ¬â Islamic Auto finance Faysal Car Finance Easy home ââ¬â Islamic Housing finance Faysal Home finance Faysal personal finance Faysal Khushaal Kisaan scheme Table 4: Banking instruments of Meezan Bank and Faysal Bank Source: www.scribd.com Now we shall study these different instruments separately. Current accounts: This kind of account is generally for business owners. They may deposit or withdraw amount as many times as they want. But a certain charge is levied on the transactions. Let us now compare the current accounts of the two banks in question: Meezan Bank ââ¬â Riba free Faysal Bank ââ¬â Faysal Sahula t This account is preferred by people who want to do banking according to the Shariah and at the same time want to have easy access to their accounts. The minimum balance required for this account is Rs.10000 and has no limit on the number of transactions. The main feature include: Free online access or at any Meezan Bank branch No limit on the number of transactions If a customer maintains an average monthly balance of Rs.1, 000,000, he/she can get free cheque books, pay orders and debit card. The minimum balance in this account is Rs.5000 and as in Meezan Bank, there is no limit to the number of transactions. The main features of this account are: Free online access or at any Faysal Bank branch No limit on the number of transactions If a customer maintains an average monthly balance of Rs.500, 000, he/she can get free cheque books, pay orders and debit card. It may be noted that most of the conditions are same in the current account of both the banks except the minimum b alance. Table 5: Current account features of Meezan Bank and Faysal Bank Savings account: Unlike current account, saving account can be opened by individuals and not business organizations. Saving bank offers some interest or profit to the account holder. This kind of account is the most preferred one by people of all genders and age groups because of its simplicity and easy access. Let us now understand the various features of different kinds of saving accounts being offered by the two banks: Meezan Bank Faysal Bank Rupee saving account ââ¬â Riba free: Following are the main features : Minimum balance is Rs.10,000 Account opened as per Musharakah system Profit calculated and paid on monthly basis An average monthly balance of Rs.10, 000 is a must to avail the benefits. Faysal savings account: Following are the main features: Minimum balance is Rs. 10, 000 Profit calculated on monthly basis but paid twice a year. Meezan Bachat account ââ¬â Riba free: Followin g are the salient features: Based on Mudarabah system High monthly returns Savings may be withdrawn whenever required The least balance required is Rs. 25, 000 Profit is credited on once in a month. Profit given even if the balance is below the balance requirements. Maximum balance limit is Rs.1,000,000 Rozana Munafa Plus: Following are the salient features: Interest calculated on the basis of balance at the end of the day Interest credited on a monthly basis Minimum balance is Rs.100, 000 for individuals Rs.500, 000 for businesses. It may be noted that there are various kinds of saving accounts with both the banks. The reason is that since saving account is a very popular form of accounting among the people and some profit is given to the customers on maintaining credit balance. The income from Meezan Bank saving account is totally Halaal whereas in the case of Faysal Bank it is Haraam as per Shariah. Table 6: Saving account features of Meezan Bank and Faysal Bank Consu mer Financing: As the name suggests this kind of financing is for customers who want to purchase some consumer goods. Such goods may include vehicle loan, credit cards, etc. Let us now understand the salient features of this kind of banking instrument in both the banks: Meezan Bank Faysal Bank The salient features include: The amount of financing is on the higher side If the loan is against property (mortgage), then finance is provided to the maximum possible Customers are allowed to make prepayments Nominal processing fees As the instalments are paid, the rental amount keeps on decreasing The salient features include: The limit of financing is up to 80% Financing tenure may be 20 years The processing of loan applications is fast Nominal processing fees The loan may be further enhanced It may be noted that while dealing with loans, Meezan Bank adheres to the guidelines of Shariah whereas, Faysal Bank performs the transactions in a typical conventional banking manner. It is noteworthy that while in Meezan Bank the financing is done on rental basis Faysal Bank charges interest on the landings. Also, Meezan Bank offers only vehicle finance and home finance whereas Faysal Bank offers vehicle finance, home finance, agriculture finance and personal finance. Table 7: Salient features of saving account of Meezan Bank and Faysal Bank The table below will further make us understand the differences between conventional banks and Islamic banks: Conventional banks Islamic banks Conventional banks have been the brain child of human beings and as such their principles and method of working is also manmade. Islamic banks are based on the guidelines of the Sharia and as such there is no interference of human beings in the basic principles of working. In conventional banking the interest rates on investments and loans is always pre-decided and the investor or borrower is aware of the outcome. Sharia law doesnââ¬â¢t allow taking or giving interest. The benefits on deposits are based on the profit earned from the investment. The lender and borrower are both partners in the venture and have a mutual understanding and bonding of sharing the risks involved. The conventional banks may go to any extent in order to make more profit out of their investments. There are no restrictions on the method they adopt. Even though Islamic banks also try to get maximum benefit or profit out of their investment, they cannot adopt any means that they want. Their actions are governed by the Sharia law and they have to abide by them. Conventional banks do not transact in Zakaat. Islamic banks are service oriented and following the Sharia law, they help people by collecting Zakaat and disbursing the same to the needy persons. Most of the Islamic banks have opened Zakaat collection centres for the trouble-free depositing of Zakaat by people. Islamic banks pay their Zakaat as well. Conventional banksââ¬â¢ main business is earning from the loans to borrowers. These banks charge compound interest on the loans to borrowers. Islamic banks also give out loans but as per Sharia law, they donââ¬â¢t charge any interest on the loan amount. Instead, they become partners in the business of the borrower. This is the reason that Islamic bank professionals make a viability study of the business that they propose to finance. Loan defaulters are dealt with very severely in conventional banking system. The bank has the right to charge penalty on the overdue amount. They can even charge compound interest on the overdue interest amount. Islamic banks do not have the right to charge any interest from loan defaulters. This is because of the Sharia guidelines. But they can charge some sort of penalty. Such penalties are not kept by the Islamic banks as their profit. This amount is given away as charity to the needy. It is possible at times those Islamic banks may give some discount in case of early payment. In conventional banking, not muc h importance is given to growth and equity. In Islamic banks peopleââ¬â¢s stake is considered to a great extent. So here the main criterion is to guarantee growth along with equity. There are times when even banks fall short of funds. This happens when some deposits are withdrawn by customers on maturity or even before that. In such circumstances, it is easier for the conventional banks to borrow funds from other banks on interest basis. In circumstances of shortage of funds, Islamic banks do not have the liberty to borrow from any conventional bank. they can borrow money only from Islamic banks and that too as per the guidelines of Sharia law. Since the rate of interest for loans and advances and deposits is always predetermined, the conventional banks do not take much interest in the project that has been financed. The project report is immaterial for them. On the contrary, since Islamic banks become partners with their customers, they thoroughly check the project report an d study the viability of the project before lending money. Even after lending the money, they keep a close watch on the performance of the project. In conventional banks the credit-worthiness of customers is very important. On the contrary, Islamic banks give more importance to the projects and their feasibility. Customersââ¬â¢ credit-worthiness is also important but not to the extent of project viability. In conventional banks, the banks are either creditors or debtors with respect to their customers. This is the only relation that they have with their customers. In Islamic banks, customers are not simply creditors or debtors. They are actually treated as partners. Table 8: Salient features of conventional banks and Islamic banks Source: www.scribd.com In addition to the aforementioned points, the statement of the financial positions of Meezan Bank and Faysal Bank are at Appendices 1 and 2 respectively. Instruments of islamic banking Deposits Islamic banks as well as conv entional banks accept deposits but the difference is in the manner of return on the deposits. While in conventional banking system, the return on deposits is predetermined, in Islamic banks it is according to the Musharaka and/or Mudaraba system. The return on deposits in Islamic banking system is not fixed. Another difference between these two banking systems is that while in conventional banking system the risk is borne by the bank, in Islamic banking system, the risk and reward are both shared by the bank and the investor. In conventional banking, since the return on deposits is predetermined, any excess benefit out of the deposits is for the bank. However, there is a similarity between the two kinds of banking system that for long term deposits the return is higher and for short term deposits, the return is lower. Investments Financing Both the conventional and Islamic banking systems offer loans or credits to business organizations. This is done in order to gain some profit ou t of the credit facility being provided. But there is a difference in the terms and conditions of financing in both these kinds of banking systems. Conventional banks disburse loans at a predetermined rate of interest but since the interest is involved, the Islamic banks cannot do so. But itââ¬â¢s not that the Islamic banks donââ¬â¢t offer loans. They do offer loans but then there is no interest factor; the loans are interest free (Qarz-e-Hasna). In Islamic banks loans are given under the profit sharing system. Overdrafts and Credit cards In conventional banking system, the customers are allowed to withdraw cash from their overdraft account or the credit cards. Credit cards may be used either for purchasing goods or for withdrawing cash. The conventional banks charge interest on the amount used under these two schemes. On the other hand, in Islamic banks there is no credit card. The customers of Islamic banks are offered debit cards whereby they can purchase goods or withdraw cash provided there is sufficient credit balance in their accounts. However, Islamic banks do offer credit but that is under the Murabaha system wherein although there is no interest factor but profit margin is added to the amount to be returned. In case of default by the customers to repay the credit availed, conventional banks charge extra amount (penalty) whereas in Islamic banks this is not the case. The defaulters have to make another agreement with the conventional banks for the repayment of the overdue amount with penalty but in Islamic banks this is not possible. In Islamic banks, even if there is any defaulter, the bank cannot charge any excess amount other than the original amount that was utilized by the customer. The only thing that Islamic banks can do in such cases is to blacklist the defaulter and abstain from lending any further credit facility to that particular customer. Leasing Leasing is a banking instrument wherein the Lessee is allowed to use the facility or pr oduct for a predetermined rent. The ownership in such cases may or may not be transferred to the lessee. In Islamic banking system, this is done under the Ijara system. Under Ijara, the ownership is not transferred to the lessee unless the lease term is completed. In Islamic banking system there are certain rules pertaining to Ijara that the banks have to abide by. Firstly, the rent is applicable only after the lessee gets custody of the asset. Secondly, in case of default in rent payment, the banks cannot charge any extra rent but a penalty may be imposed. This penalty cannot be kept by the banks as their profit but it has to be given to some charity. Thirdly, in case there is any major repair required or is going on the banks cannot claim the rent. And lastly, in case of lost of asset, the Islamic banks cannot claim the remaining instalments. It means that the Islamic banks have to bear the ownership risks. Agriculture loans Agriculture loan is of two kinds; short-term and long-te rm. Short term agriculture loans are required by farmers in order to purchase seeds, fertilizers, etc. The long-term agriculture loans are meant for expansion, purchase of irrigation equipments, etc. It is a usual practice of farmers to return the loan amount once their crops are sold. The conventional banks charge some predetermined interest on the extended loan facility. In Islamic banks, there are different systems for different purposes. For purchasing seeds, fertilizers, banks offer credit to farmers in return of the crops. This is called the Bai Salam system wherein the farmers have to give the agreed quantity of crops to the banks in lieu of the credit facility availed by them. The Murabaha system is for extending credit facility for the purchase of irrigation equipments. For expansion or purchase of further land, the Musharaka and Mudaraba systems come into effect. But in order to avail all these facilities from an Islamic bank, the farmers have to convince the bankers on th e viability and profitability of their farming venture. Housing finance Housing finance is the best form of financing for any financial institution whether it is a conventional bank or an Islamic bank. But as mentioned earlier, there is a difference in the terms and conditions of financing in both the banking systems. In conventional banking system, housing loan is offered on a predetermined interest rate whereas in Islamic banks the housing finance is offered according to the reducing Musharaka system. Under the reducing Musharaka system, the house to be financed is purchased by the bank and the customer as joint owners. The bank then offers its share in the property to the customer for a predetermined rent. The share amount of the bank is segmented into small amounts and the customer has to pay this amount along with the rent to the bank as instalments. As the customer keeps on paying the instalments, his/her share or stake in the house keeps on increasing while that of the bank k eeps on decreasing. When the last instalment is also cleared by the customer, the bank has no claim over the house and the ownership of the house is transferred to the customer. The good thing (beneficial for the customer) in house financing according to the reducing Musharaka system is that if by chance there is any devaluation of the property, the customer doesnââ¬â¢t have to bear the brunt alone. The bank will also share the loss according to its share in investment. Advantages and disadvantages of islamic banking The following table depicts the advantages and disadvantages of Islamic banking: Advantages Disadvantages The most important advantage in Islamic banking is that there is risk sharing between the bank and the customer. Businesses dealing in products and/or services that are considered Haram in Islam are not dealt with. More importance is given to productivity instead of credit worthiness. Since interest is also Haram, Islamic banks cannot lend money to other b anks. They cannot also borrow money from other banks because it involves interest. No interest is charged on loans. Since no penalty is levied on defaulters, the banks are at a loss. Deals with only those businesses that are within the permissible limits of the Shariah law. Exporters have to suffer because in Islamic banks, forward booking of currency is not allowed and in case of devaluation of currency, the exporters end up in loss. Since the loans and advances are done on a profit sharing basis, there are a number of ways in which the agreement can be made. So there is no set standard of format. On the Islamic banksââ¬â¢ part, they have to be satisfied with a very nominal amount on bills discounted by them. The banking transactions in Islamic banks are governed by moral standards that have been laid down by the Shariah. Islamic banks always try to get better deals for their customersââ¬â¢ investment because they want to give them better profit on their investment s so that more customers are attracted towards the banks. In this competition banks try to outperform each other and the ultimate beneficiary is the customer. Table 9: Advantages and disadvantages of Islamic banking Economic crisis and islamic banking The economic crisis has turned out to be disastrous for the financial sector. Banks have started to abstain from lending. This has increased the borrowing rate. ââ¬Å"The value of bonds issued worldwide against mortgages, for example, crashed from $1.9 billion for the year to $500 million in the year 2008â⬠. (Hassan par. 3). The third world countries were the most affected since they had drawn inspiration from the idea of free market. This situation was mostly limited to the conventional banking sector. The Islamic banking sector was not affected much. The reason was that Islamic banks function on a partnership basis with their customers. ââ¬Å"The Islamic economic and financial system is based on a set of values, ideals and morals, such as honesty, credibility, transparency, clear evidence, facilitation, co-operation, complementarities and solidarityâ⬠(Hassan p. 4). Such moral conducts provide protection, constancy and protection to the parties involved in the transactions. Also, as per the Shariah, taking or giving interest is not allowed. Also businesses such as gambling are prohibited. All such factors have made the Islamic banking system a reliable source for making financial transactions. ââ¬Å"Beginning in 1998 and 1999, the bank failure rate began to climb again, with a failure rate accelerating in 2008, 2009, and 2012. In 2008, 25 banks were closed. This number jumped to 140 bank failures in 2009â⬠(Amran p. 8). The following two tables will further make us understand the effect of the financial crisis on Islamic banks and conventional banks: Ratios Before crisis During crisis Before crisis During crisis Before crisis During crisis Capital Adequacy Ratio (CAR) Return on Aver age Assets (ROAA) Return on Average Equity (ROAE) Mean 21.075 17.91667 2.996 3.0875 25.296 14.965 t-test 2.3563 -0.073 5.399 p-value 0.01903 0.4715 0.000108 t critical (one tail) 1.7958 1.7958 1.7958 Liquid Assets / Total Assets (LA/TA) Cost to Income Ratio (CTI) Equity / Total Assets (E/TA) Mean 26.7 22.29 36.616 38.9 16.35 13.79 t-test 1.3172 -1.00125 2.6883 p-value 0.107265 0.1691 0.01054 t critical (one tail) 1.7958 1.7958 1.7958 Table 10: Capital Adequacy Ratio (CAR) of Islamic banks before and during the financial crisis Source: www.businessperspectives.org Ratios Before crisis During crisis Before crisis During crisis Before crisis During crisis Capital Adequacy Ratio (CAR) Return on Average Assets (ROAA) Return on Average Equity (ROAE) Mean 15.275 15.325 2.348 1.169 17.77 7.2025 t-test -0.0529 3.648 2.619 p-value 0.479 0.001915 0.0119 t critical (one tail) 1.7958 1.7958 1.7958 Liquid Assets / Total Asse ts (LA/TA) Cost to Income Ratio (CTI) Equity / Total Assets (E/TA) Mean 24.7 20.08 34.30 35.876 12.17 12.46 t-test 2.256 -0.095 -0.3505 p-value 0.022 0.180 0.366 t critical (one tail) 1.7958 1.7958 1.7958 Table 11: Capital Adequacy Ratio (CAR) of conventional banks before and during the financial crisis Source: www.businessperspectives.org From the aforementioned tables it may be concluded that the Islamic banks performed better than their conventional counterparts before as well as after the crisis. After analyzing the different ratios it makes us understand that the Islamic banks had greater profitability as compared to the conventional banks. Islamic banking is the solution to economic problems If all the banks follow the guidelines of the Shariah, financial crisis can never happen. For example if the conventional banking sector adopts the risk-sharing system of the Islamic banks, there would never be any problem because then the banks will take great care while investing the funds. Likewise the Islamic banks, the conventional banks will also do proper survey before investing anywhere. By investing also means lending money to borrowers. Before lending money to such borrowers, the banks will do a thorough viability study and only after being convinced of the profitability they will offer the financing of the project. ââ¬Å"Islamic banks act as venture capital firms collecting peopleââ¬â¢s wealth and investing it in the economy, then distributing the profits amongst depositors. Islamic banks act as investment partners for those who need money to do businessâ⬠. (Hassan p. 4). ââ¬Å"The collapse of leading Wall Street Institutions, notably Lehman Brothers, should encourage economists worldwide to focus on Islamic banking and finance as an alternative modelâ⬠(Amran p. 9). The success of Islamic banks can be understood from the fact that the number of such banks is increasing incessantly and the amount they are dealing in i s touching the skies. ââ¬Å"Furthermore, Islamic banking provides a viable alternative to conventional banking and is less cycle prone. The spread of Islamic finance into western markets demonstrates that it is now being treated seriously by regulators and finance ministersâ⬠(Amran p. 12). The growth of Islamic banks can be gauged by Thomas Groseââ¬â¢s statement that, ââ¬Å"London now is home to 25 companies offering some form of Islamic financing. BLME is the largest of five wholly Sharia-compliant banks operating in Britain. The first, the Islamic Bank of Britain, opened in 2004, and the number is expected to double within five yearsâ⬠(Grose par. 4). The Islamic banking has become popular because people have started understanding that only Islamic banking system can save them from the severe financial crisis in future. Mr. Adnan Ahmed Yousi, who is the CEO of Albaraka Group, Bahrain, claimed that ââ¬Å"Islamic banks do not rely on bonds or stocks, and are not inv olved in the buying and selling of debt unlike most conventional banksâ⬠¦Islamic banking is distinguished by the fact that it is prohibited from buying debts under Islamic Sharia lawâ⬠(as cited by Al-Hamzani par. 3). This is the reason that Islamic banks are unaffected to a great extent by the global economic crisis. So it is advisable for the conventional banks to follow the banking systems of Islamic banks and avoid further and future risks. Network of islamic banks around the world Following is a consolidated list of the main Islamic banks in different countries around the world: Country Islamic bank name Albania Arab Albanian Islamic Bank, Tirana Algeria Banque Albaraka Dââ¬â¢Algerie, Algiers Australia Muslim Community Credit Union (MCCU) Muslim Community Co-operative (MCCA) Bahamas Akida Islamic Bank International Ltd. Bank Al Taqwa Ltd. Dar Al Mal Al Islami Trust, Nassau Islamic Investment Company of the Gulf Ltd., Nassau Istishara Consulting Trust, Bah amas Massraf Faysal Islamic Bank Trust, Bahamas Ltd. Bahrain ABC Investment Services Co EC Al Amin Co. For Securities and Investment Funds Albaraka Islamic Investment Bank Arab Islamic Bank E.C. Bahrain Islamic Bank Bsc. Bahrain Institute of Banking Finance Bank Melli Iran Chase Manhattan Bank N.A. Citi Islamic Investment Bank (Citicorp) Dallah Albaraka (Europe) Ltd. Dallah Albaraka (Ireland) Ltd. Faysal Investment Bank of Bahrain Gulf International Bank BSC Islamic Investment Company ABC Islamic Bank ABN Amro Bank Deutsche Bank Rep office Investors Bank TAIB Bank of Bahrain Turk Gulf Merchant Bank Bahrain Monetary Agency Shamil Bank Khaleej Investment Company First Islamic Investment Bank Bangladesh Albaraka Bangladesh Ltd., Dhaka Islamic Bank Bangladesh Ltd., Dhaka Faisal Islamic Bank British Virgin Islands Ibn Khaldoun International Equity Fund Ltd. Brunei Islamic Bank of Brunei Berhad Islamic Development Bank of Brunei Berhad Tabung Amanah Islam Brunei Canada Isl amic Co-operative Housing Corporation Ltd. Toronto Cayman Islands Ibn Majid Emerging Marketing Fund Al Tawfeek Co. For Investment Funds Ltd. Denmark Faisal Finance (Denmark) A/S Djibouti Bank Albaraka Djibouti Egypt Alwatany Bank of Egypt, Cairo Egyptian Company for Business and Trade S.A.E. Egyptian Saudi Finance Bank, Cairo Gulf Company for Financial Investment Faisal Islamic Bank of Egypt, Cairo Islamic Bank International for Investment and Development, Cairo Islamic Investment and Development Co., Cairo National Bank for Development, Cairo France Algerian Saudi Leasing Holding Co. Societe General Capital Guidance BNP Paribas Gambia Arab Gambian Islamic Bank Germany Bank Sepah, Iran Commerz Bank Deutche Bank Guinea Massraf Faisal Al Islami of Guinea, Conakry Banque Islamique de Guinee India Al Ameen Islamic Financial Investment Corp. (India) Ltd., Karnataka Bank Muscat International (SOAG) Al-Falah Investment Ltd. Iran Bank Keshavarzi (Agriculture Bank) Tehra n Bank Maskan Iran (Housing Bank), Tehran Bank Mellat, Tehran Bank Melli Iran, Tehran Bank Saderat Va Maadan, Tehran Bank Sepah, Tehran Bank Tejarat, Tehran Iraq Iraqi Islamic Bank for Investment and Development Italy Bank Sepah, Iran Ivory Coast International Trading Co. of Africa Jordan Jordan Islamic Bank Jordan Islamic Bank for Finance and Investment, Amman Kuwait Gulf Investment Corporation The International Investment Group The International Investor, Safat Kuwait Finance House, Safat Kuwait Investment Co-Dar Al-Isethmar Securities House Lebanon Gulf International Bank, Bahrain Al Barakah Bank Bank of Beirut Luxembourg Faisal Finance (Luxembourg) S.A. Faisal Holding, Luxembourg Takafol S.A. Islamic Finance House Universal Holding S.A. Malaysia Adil Islamic Growth Fund, Labuan Arab Malaysian Merchant Bank Berhad, Kuala Lumpur Bank Bumiputra Malaysia Berhad, Kuala Lumpur Bank Islam Malaysia Berhad, Kuala Lumpur Bank Kerjasama Rakyat Malaysia Berhad, Kuala Lumpur Dallah Al Baraka (Malaysia) Holding Sdn Bhd Lembaga Urusan Dan Tabung Haji (Fund), Kuala Lumpur Multipurpose Bank Berhad, Kuala Lumpur United Malayan Banking Corp. Berhad, Kuala Lumpur Bank Muamalat Berhad, Malaysia Securities Commission Labuan Offshore Financial Services Authority (LOFSA) Islamic Banking Takaful Dept., Bank Negara Malaysia Mauritania Banque Alabaraka Mauritaninne Islamique Morocco Faisal Finance Maroc S.A. Faisal Finance (Netherlands) B.V. Faisal Finance (Netherlands Antilles) N.V. Niger Bank Islamique Du Niger, Niamey Nigeria Habib Nigeria Bank Ltd. Ahmed Zakari Co. Oman Bank Muscat International Bank Sedarat IUran, Muscat Oman Arab Bank Pakistan Al Faysal Investment Bank Ltd. Islamabad Al Towfeek Investment Bank Ltd. Lahore Faysal Bank Ltd. National Investment Trust Ltd., Karachi Shamil Bank Meezan Bank Limited Palestine Arab Islamic Bank Arab Islamic International Bank (AIIB) Plc Cairo Amman Bank Oalestine International Bank The Palestine Islamic Bank Qatar Islamic Investment Company of the Gulf Ltd., Sharjah Qatar International Islamic Bank, Doha Qatar Islamic Bank SAQ, Doha Russia BADR Bank Saudi Arabia Albaraka Investment and Development Co., Jeddah Al Rajhi Banking and Investment Corp., Riyadh Arab Leasing International Finance (ALIF) Ltd. Faysal Islamic Bank of Bahrain E.C., Dammam Islamic Development Bank, Jeddah National Commercial Bank Ltd., Jeddah Riyad Bank Saudi American Bank, Jeddah Saudi Holland Bank Bank Al Jazira Senegal Banque Islamique Du Senegal South Africa Albaraka Bank Ltd., Durban Sri Lanka Amana Islamic Bank Amana Takaful Limited Sudan Al Baraka Al Sudani, Khartoum Al Shamal Islamic Bank Al Tadamon Islamic Bank, Khartoum Animal Resources Bank El Gharb Islamic Bank Faisal Islamic Bank of Sudan, Khartoum Islamic Bank Western Sudan, Khartoum Islamic Co-operative Development Bank, Khartoum Sudanese Islamic Bank Switzerland Cupola Asset Management SA, Geneva Dar Al Maal Al Islami Trust, Gen eva Faisal Finance (Switzerland) SA, Geneva Pan Islamic Consultancy Services Istishara SA, Geneva Pictet Cie Tunisia Beit Ettamwil Al Tunisi Al Saudi, Tunis B.E.S.T. Re-Insurance Turkey Albarakah Turkish Finance House, Istanbul Emin Sigorts A.S. Faisal Finance Institution, Istanbul Faisal Islamic Bank of Kibris Ltd., Turkey Ihlas Finance House Kuwait-Turket Evkaf Finance House Asya Finans Kurumu A.S. United Arab Emirates Abu Dhabi Islamic Bank Bank Muscat International (SOAG) Dubai Islamic Bank, Dubai Gulf International Bank, Bahrain Islamic Investment Company of the Gulf Ltd., Abu Dhabi Islamic Investment Company of the Gulf Ltd., Sharjah National Bank of Sharjah HSBC, Dubai National Bank of Dubai United Kingdom Albaraka International Ltd., London Albaraka Investment Co. Ltd., London Al Rajhi Investment Corporation, London Al Safa Investment Fund Bank Sepah, Iran Dallah Al Baraka (UK) Ltd., London Takafol (UK) Ltd., London Barclays Capitol HSBC Amanah Finance ANCIB Islamic Asset Management, Arab Banking Corp. Ireland Al Meezan Commodity Fund Plc., Dublin The Islamic Investment Company, St. Helier MFAI (Jersey) Limited United States of America Abrar Investments, Inc., Stamford CT Al-Baraka Bancorp Inc., Chicago Al-Madina Realty Inc., Englewood NJ Al-Manzil Islamic Financial Services Amana Mutual Funds Trust, State St. Bellingham WA Ameen Housing Co-operative, San Francisco American Finance House Bank Sepah, Iran BMI Finance Investment Group, New Jersey Dow Jones Islamic Index Fund of the Allied Asset Advisors Funds Failaka Investments Inc., Chicago IL Fuloos Incorporated, Toledo OH Hudson Investors Fund Inc., Clifton NJ MSI Finance Corporation Inc., Houston TX Samad Group Inc., Dayton OH Shared Equities Homes, Indianapolis IN HSBC, USA MEF Money, USA Islamic Credit Union of Minnesota, (ICUM) United Mortgage Yemen Islamic Bank of Yemen for Finance and Investment, Sana Saba Islamic Bank, Sana Faisal Islamic Bank Yemen Islamic Bank, Sana Yemen Nat ional Investment Co., Sana Table 12: Islamic Banks in various nations Source: www.listofbanksin.com Challenges and problems being faced by islamic banks Majority of the Islamic banks are located in Muslim countries. The non-Muslim world is not much aware about Islamic banks and their principles. The Islamic banks are bound by the guidelines of the Shariah law. As such, they have to work according to the Musharaka and Mudaraba systems. It has been observed that the Islamic banks face problems in their functions and the bankers owe these problems to the following reasons: There is a shortage of serious and genuine people who want to do business. People take loans from Islamic banks for the sake of it. Due to the lenient rules of repayment, people approach such banks for loans and advances. There are numerous instances wherein people have taken loan from Islamic banks and havenââ¬â¢t returned because they are aware of the loop holes that no penalty can be levied on them. Within t he bank, there is a shortfall of well trained professionals who are well versed with the Islamic banking system. Each one of us wants to do the best in life and so do the banking professionals. Even though Islamic banks are doing well, their business is not at par with the volume of business handled by the conventional banks. And since size does matters, the fresh banking professionals prefer the conventional banks rather than the Islamic banks. They are worried about their profession and future promotions. Secondly, Islamic banking needs professionals who are well aware of the nature of business in their banks. There is a dearth of such professionals. Young graduates do not see any future in the Islamic banking sector. It needs a lot of moral and religious understanding on the part of the employees of Islamic banks. It is very ironic to state that due to the vast advancements in science and technology, young students have ample opportunities that are more lucrative and challenging than being an Islamic bank professional. The professionals of Islamic banks are required to have a greater perspective of the banking industry; Islamic in particular, and at the same time, they have to have a proper understanding of their customers and their projects. There are only limited banking instruments with the Islamic banking professionals that they can offer to the customers. It is a human tendency to go to shops where there is a large variety of things that they want to purchase. Similarly, when a person wants to do banking, he/she will like to have more options to choose from. According to the Shariah guidelines, forward booking of currency is not allowed. So there is always a risk of currency fluctuation. Under such circumstances, the exporters are at a loss and the foreign importers are the beneficiaries. Suppose for example an exporter takes order for a particular item at $100 per piece. During the time of finalization of the order, the currency exchange rate is say $ 1 = Rs.50. It means that the exporter has agreed on a rate of Rs.5000 per piece. But due to the currency rate fluctuation, the rate may come down to say $1= Rs.45. It means that the exporter has to sell goods at a loss of Rs.500 per piece. This issue sometimes forces business people to opt for the conventional banking system. Itââ¬â¢s a normal practice by exporters that as soon as their goods are loaded, they approach their respective banks for bill discounting. In conventional banking, bill discounting is preferred because the banks get good commission and sometimes interest as well on the amount discounted. On the contrary, Islamic banks are bound by the Shariah guidelines and though they are allowed to do bill discounting, they cannot charge any interest and moreover, the charges are also very nominal. In spite of the fact that Islamic banking system has been prevalent for more than 35 years now, majority of the people are unaware of the basic principles of Islamic banking or what exactly Islamic banking is. If the Islamic banks want to prosper, it is very crucial for them to spread awareness among the people about Islamic banking. It is an added portfolio for the Islamic banks to teach each and every new customer about the principles of Islamic banking. Islamic banks are not fully established and are still in the learning and experiencing phase. It is a common practice in Islamic banks to use the short term deposits of their customers for long term financing. This is done because the banking professional are under the impression that certain short term deposits wonââ¬â¢t be withdrawn, even on maturity. This belief of theirs sometimes backfires when some of these short term deposits are withdrawn. In such circumstances, the bank has funds problem and as per the banking culture, it has to borrow from some other bank for a couple of days. The banks those are ready to transfer funds donââ¬â¢t do it as a courtesy or a friendly gesture. They charge a ce rtain amount of interest. Here the problem arises for the Islamic banks since they are bound by the guidelines of the Shariah law and can neither pay interest nor take interest. As mentioned above, most of the Islamic banks do not have the variety of instruments that conventional banks have. Due to the advancement in technology and science, conventional banks have gone far ahead in bringing innovative products for their valued customers. Islamic banks, on the other hand, are banking on the same old banking instruments or products. Moreover, most of the Islamic banks do not have their own research and development department so that they may devise new products. This hampers the progress of Islamic banks to a great extent. In todayââ¬â¢s world, advertisement is a must for any productââ¬â¢s success. But ironically, Islamic banks do not do much of advertising and avoid the media to a great extent. Actually, the world should know what Islamic banking is about and for this advertise ment or the media are the best options. Recommendations Itââ¬â¢s not impossible to have solutions for all the problems mentioned above. Itââ¬â¢s just a little understanding and initiative that is required. It has to be accepted that the working conditions for Islamic banks will never be the same in Muslim and non-Muslim countries. Itââ¬â¢s not that these problems are faced by all the Islamic banks. The Islamic banks in Muslim countries such as the Kingdom of Saudi Arabia, United Arab Emirates, Qatar, etc, are doing quite well. Itââ¬â¢s only the newer ones in non-Muslim countries that are facing the major problems. Since the Islamic banks follow the values of Islam in their banking operations, they should also be humble and extend help to the new Islamic banks. At least they can provide feedback, experienced professionals etc. So that the newcomers are not stuck and may perform better and come up to the expectations of the principles of Islamic banking. It should be the e ndeavour of the International Islamic Banking Organization, the Islamic Development Bank, and other Islamic banks governing agencies to put more efforts and professionals in the research and development field. I am sure experts on Islam religion must have been employed by such organizations but such experts should have a vast and broad mindset and identify new products for the masses. According to Dr. Salah Al-Shalhoub, head of the Centre of Banking Studies and Islamic Finance (CBSIF), the trend of Islamic banking is changing and ââ¬Å"The Islamic banking system, which used to design products on purely Islamic basis, began to expand these products to meet requirements of customers who felt more secured about their investments, not only in terms of finance but also from the Shariah perspectiveâ⬠(as cited in Arab News par. 9). Itââ¬â¢s true but more efforts are required. Like regarding the problem being faced by the Islamic banks due to the bill discounting and booking of fo reign currency, the governing bodies can devise some way to overcome the problem. This way they will be able to attract more and genuine customers because as such Islamic banking system is an excellent one and people will prefer Islamic banking if their requirements are met. The Islamic banks, on their part, should hire more professional people who are experts in banks and have the knowledge of the principles of Islamic banking as well. Customer service is very important in any service organization. Customer service doesnââ¬â¢t only mean welcoming the customers and offering them a glass of cold water. The Islamic banking professional should go out of the way and explain to their customers what Islamic banking is all about and how they will be benefitted. The Islamic banks should rely on the media and should have a separate budget for advertisement. After all, this is a kind of business and businesses prosper due to advertisement. This way, two purposes will be served. Firstly, th e advertisement will spread the awareness of Islamic banking and secondly the bankââ¬â¢s popularity will grow. People will come to know about the specialities of Islamic banking system and will automatically be attracted towards doing business with such banks. Even if initially the business people hesitate to come due to the strict guidelines regarding various products and instruments, at least the banks can garner many customers for their saving bank accounts. Nowadays even children want to open their saving accounts. Gradually, as there will be more innovative products and the banks will have better professionals, it is beyond doubt that Islamic banks wonââ¬â¢t succeed. The future of Islamic banks is very bright. Conclusion It has been only 37 years since Islamic banks have come into the banking scenario and as compared to the conventional banks, they are quite new. As such, it is quite early to decide whether or not Islamic banking industry is a success or not. Looking at t he response and feedback that Islamic banks are getting from foreign countries that are non-Muslim it may be understood that the even though slow yet there is some progress. The popularity is increasing gradually. Moreover, the world economists have been quite impressed by the performance of Islamic banks during and after the economic crisis. There have been symposiums and conferences to discuss this issue. The number of Islamic banks in non-Muslim countries is increasing gradually and it is estimated that within the next five odd years, the number will double. There are certain drawbacks of Islamic banks but these are due to the strict guidelines of the Sharia. But if we look at these drawbacks from the Sarahââ¬â¢s point of view, it will be understood that it is actually for the good of the masses. Sharia law doesnââ¬â¢t want to harm anyone due to its principles. Islam doesnââ¬â¢t allow earning money from money. The only ways of earning allowed in Islam through business ar e trading, manufacturing, and service oriented jobs. There are restrictions to such businesses also. Certain things cannot be dealt with such as gambling, pork, intoxicating items, etc. If we think optimistically, such guidelines are better for the society as a whole because all malpractices can be avoided by such guidelines. Children learn what they see. If we start following the same path as the Islamic banks and abstain from all those things that are banned according to Sharia law, our future generation is sure to become a decent and civilized and God-fearing one. Then our earth will be a better place to live in. Works Cited Al-Hamzani, Mohammed. 2008. Islamic Banks Unaffected by Global Financial Crisis. Web. http://www.asharq-e.com/news.asp?section=6id=14245. Amran, Muhamad. n.d. Prospects for Islamic Banking after the World Economic Crisis. n.d. Web. http://www5.cuhk.edu.hk/wylf/wylf_media/paper_poster/Economic_07_Muhamad_Nur_Adzim_AMRAN.pdf. Arab News. 2012. Symposium Explores Prospects of Islamic Banking. Web. http://www.arabnews.com/symposium-explores-prospects-islamic-banking. Ariff, Mohamed, and I. Munawar. The Foundations of Islamic Banking, Cheltenham, United Kingdom: Edgar Elgar Publishing, 2011. Print. Banking Info. 2009, Your Guide on Basic Concepts and Principles of Islamic Banking. Web. http://www.bankinginfo.com.my/_system/media/downloadables/islamic_banking.pdf. Faysal Bank. n.d. Faysal Bank. n.d. Web. http://www.faysalbank.com/aboutus.html. Grose, Thomas. 2008. The Rise of Islamic Banking in a Time of Economic Crisis. Web. http://www.usnews.com/news/world/articles/2008/12/10/the-rise-of-islamic-banking-in-a-time-of-economic-crisis. Hannan. n.d. Islamic Banking: Problems and Prospects. n.d. Web. http://www.shahfoundationbd.org/hannan/article10.html. Hassan, Abul. 2009. The Global Financial Crisis and Islamic Banking. Web. http://www.islamic-foundation.org.uk/IslamicEconomicsPDF/Hassan-financialcrisis-if.pdf. Meezan Bank. n.d. Meezan Bank. n. d. Web. http://www.meezanbank.com/MeezanBank1.aspx. Sultan, Anees. 2008. As Islamic Banking Grows, so does the Need for Standards. Web. http://www.thenational.ae/thenationalconversation/comment/as-islamic-banking-grows-so-does-the-need-for-standards. Tahir, Sayyid. n.d. Current Issues in the Practice of Islamic Banking. n.d. Web. http://www.irti.org/irj/go/km/docs/documents/IDBDevelopments/Internet/English/IRTI/CM/downloads/Distance_Learning_Files/Lecture-8_Related_Reading-1_Current_Issues_in_the_Practice_DrTahir.pdf. The Islamic Banker. n.d. Islamic Banking and Economics. n.d. Web. http://www.theislamicbanker.com/history_islamic_banking/. Appendix 1 Statement of financial position of Meezan Bank Source: www.meezanbank.com Appendix 2 Statement of financial position of Faysal Bank Source: www.faysalbank.com This assessment on Islamic Banking was written and submitted by user Aryan Olson to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.
Subscribe to:
Posts (Atom)