Psychotropics in Paediatrics or Adolescents

Psychotropics in Pediatrics or Adolescents Presentation Psychotropic medications will be drugs and concoction details that cross the blood cerebrum obstruction to follow up on the focal sensory system to invigorate the difference in state of mind and conduct of a person. Schatzberg and Nemeroff (2009) underscore that note that these meds are not therapeudic yet rather palliative, and in spite of the fact that they may improve side effects related with different mental issue, they don't fix the essential driver of the clutters. As indicated by Perry (2007), psychotropic prescriptions incorporate antidepressants, antipsychotic or neuroleptics, consideration shortage hyperactivity issue (ADHD) drugs, and antimanic or anxiolytics among others. This paper targets examining the physiological ramifications of utilizing psychotropic meds in pediatric and pre-adult populaces with an inclination on neuroleptic/antipsychotic, anxiolytic/antianxiety and ADHD drugs. While there might be reservations with respect to the utilization of psychotropic medicine in kids and the physiologic impact of these medications on youthful people’s focal sensory system advancement, leaving mental scatters untreated is anything but a feasible choice as clearly upheld by clinical writing. This is on the grounds that untreated psychological sickness may cause foremost long haul grimness and even irreversible deficiencies in socio-passionate and intellectual working. Despite moral and lawful reservations encompassing the utilization of psychotropic medications among pediatric and immature patients, examinations of information on their utilization uncovers quick changing patterns highlighting expanded use. As per Hsia and MacLennan (2009) there was a three-overlap increment of the quantity of kids/youths taking any psychotropic medication somewhere in the range of 1987 and 1996. Immature visit to doctors essentially expanded psychotropic medicines as prove by a n expansion to 8.3% of the medicines in 2001, up from 3.4% in 1994 (Hsia MacLennan, 2009). In 2001, psychotropic solutions made up 8.8% of every single psychopharmacological remedy among patients matured somewhere in the range of 6 and 17 years (Hsia MacLennan, 2009). As far as sex, increasingly male pediatrics and teenagers are on these meds contrasted with their female partners. Because of expanded rates of tension, burdensome, hyper, and other psychotropic issue in pediatrics and young people, there has been an expanded acknowledgment and requirement for utilization of neuroleptics, anxiolytics and stimulant medications in these patients. Neuroleptics and their suggestions on pediatrics/juvenile Neuroleptics, otherwise called significant sedatives or antipsychotic drugs are utilized principally to treat psychoses and manifestations. In pediatrics and young people, they are likewise shown in the treatment of other non-insane mental issue. They are the medications of first decision in treatment of chemical imbalance and schizophrenia in youngsters and pre-adulthood. Kalyna and Virani (2007) clarify that neuroleptics are utilized in treatment of pediatrics and teenagers with seriously forceful lead issue, Tourette’s issue, and incessant engine or vocal spasm issue. Antipsychotic drugs are additionally utilized in the treatment of ADHD however their utilization has diminished because of expanded utilization of energizer prescriptions which are increasingly viable for this issue. Instances of antipsychotic drugs incorporate haloperidol, chlorpromazine, molindone and fluphenazine. More up to date definitions incorporate olanzepine, clozapine, quetiapine, risperidone and zip rasidone (Hamrin, McCarthy Tyson, 2010). The utilization of neuroleptics on pediatrics and young people has a few ramifications. Reactions related with long haul utilization of these prescriptions in this populace incorporate akathesia, intense dystonic responses, parkinsonian side effects, tardive dyskinesia, anticholinergic indications and sedation. They likewise lower seizure limit in helpless subjects and medications, for example, Chlorpromazine ought not be utilized in such patients. Tardive dyskinesia is a grave concern and has been accounted for in around 1 to 20% of pediatrics and young people on long haul utilization of neuroleptics (Kalyna Virani, 2007). It might happen as right on time as 5 months after beginning of treatment or may postpone to as long as 3 years. Since pediatrics and youths have more dopamine receptors than grown-ups, they are increasingly touchy to symptoms influencing the focal sensory system. Long haul utilization of neuroleptics ought to be evaded in this populace however †¦.contends th at low portions might be suggested in chosen troublesome cases. Opposite symptoms related with neuroleptics incorporate weight increase, sporadic menses and bosom broadening in youths. Doran (2013) records that second-age hostile to crazy (SGA’s) medications can cause metabolic unsettling influences and weight gain in pediatrics and teenagers in any event, during first-time treatment. For example, in a preliminary of treatment of schizophrenia with olanzapine, 30% of the pediatric/pre-adult subjects put on weight contrasted with 6% in grown-up subjects (Doran, 2013). Different SGAs, for example, risperidone, quetiapine and clozapine likewise posted comparative outcomes with the pediatric/juvenile subjects picking up between 0.9 to 16.2 kilograms (Doran, 2013). Withdrawal of neuroleptics or bringing down of the dose may prompt withdrawal new condition with resultant disturbance of crazy indications. This has been accounted for in pediatrics and side effects incorporate ataxia, retching and queasiness. In an examination by Vitiello (2008) as high as 51% of the pediatric patients indicated the withdrawal manifestations, for the most part happening following scarcely any days to not many weeks after medication withdrawal. Clozapine has been related with passings of two pediatric patients with the system being connected to unexpected discontinuance of treatment (Vitiello, 2008). Haloperidol has been exhibited to meddle with the kids and adolescent’s day by day schedule including social and school exercises. Neuroleptics increment sedation, laziness and sluggishness in pediatrics and youths than in grown-ups; for example, this was exhibited in 30% to 49% of pediatric patients being treated with Risperidone as opposed to 7% of grown-ups ta king a similar medication for bipolar madness (Hamrin, McCarthy Tyson, 2010). Anxiolytics and their suggestions on pediatric/young people Anxiolytics are psychopharmacologic drugs used to treat nervousness issue in pediatrics and youths. Different conditions for which they may utilized incorporate rest issue, forceful practices and psychosis. They incorporate specific serotonin-reuptake inhibitors (SSRIs) benzodiazepines, tricyclic antidepressants (TCAs) and busipirone. Nervousness issue are incredibly overwhelming in youth; somewhere in the range of 6 and 20% of kids have a sort of uneasiness issue (Kalyna Virani, 2007). Doran (2013) records that utilization of benzodiazepines in pediatrics and youths has significantly increased in the course of the most recent 10 years. Anxiolytics are prescribed to be utilized simply after a fallout of an occasion for example awful accident and ought to be utilized for brief periods (not over about fourteen days) to stay away from the danger of creating dependence or decreased viability. An ongoing survey shows that SSRIs have become the favored pharmacological intercession for pediatric uneasiness issue. They have intense anxiolytic impacts and their resilience among pediatrics and youths is high. In any case, this class of psychotropic medications has been related with expanded self-destructive ideation. An all around archived discussion in pediatric and juvenile psychopharmacology happened in 2003 when FDA gave open alarm cautioning prescribers of expanded ideation and endeavors of self destruction among patients underneath 18 years on anxiolytics (Vitiello, 2008). This added to a significant drop in paces of conclusion and remedy of these medications among pediatric and immature populace. Afterward, after a meta-examination of various clinical preliminaries of nine medications in this class, it was exhibited that there was just a minimal increment (0.7%) expansion in the self-destructive ideation with no real increment in finished suicides (Schatzberg Nemeroff, 2009). Notwithstanding, this has prompted appropriation of a multidisciplinary approach towards the board of pediatric and juvenile despondency to include both pharmacological and non-pharmacological mediations. Cardiovascular unfriendly impacts are regularly detailed with most enemy of uneasiness meds on the grounds that these medications follow up on the autonomic framework. Such symptoms remember increment for pulse and changes in circulatory strain. In spite of the fact that these symptoms are for the most part not of major clinical importance while taking psychotropic prescriptions, tricyclic antidepressants (TCAs, for example, desipramine have been uncertainly connected to abrupt passing among pediatric patients (Kalyna Virani, 2007). Along these lines, it is basic for the recommending doctors to take a far reaching tolerant history, just as screen the electrocardiograms, pulse and circulatory strain changes of the pediatric and immature patients previously and during treatment with psychotropic operators, for example, TCAs. Lamotrigine plainly builds the hazard for serious skin responses and hives in pediatrics and youths (Dulcan, 2010). Another basic thought in anxiolytic utilization of medications in these subjects is tranquilize cooperations. Medications that restrain the cytochrome P450 catalyst framework could effectsly affect the subjects if associatively managed with anxiolytics (Perry, 2007). Antifungal medications and a few anti-infection agents, for example, erythromycin when co-regulated with SSRIs, for example, fluoxetine can cause cardiovascular arrhythmias (Perry, 2007). Others, for example, imipramine and Lamotrigine can cause poisonous insanity (Hamrin, McCarthy Tyson, 2010). The prescribers must report all prescriptions that may have sedate medication connections with psychotropics just as those that have immediate or backhanded impact on the cytochrome P450 catalyst framework. ADHD drugs and their suggestions on pediatrics/young people Energizers utilized in the board of ADHD are probably the most utilized psych

Sister Emmanuelle- Her Life Essays - Emmanuelle, Free Essays

Sister Emmanuelle-Her Life Essays - Emmanuelle, Free Essays Sister Emmanuelle-Her Life Sister Emmanuelle-Her Life of Accomplishments A: Summary of Sister Emmanuelles Life Sister Emmanuelle was Christened Madeleine Cinquin and was conceived in Brussels on the sixteenth of November 1908. She was one of three kids to Berthe Lenssens and Jules Cinquin. Madelienes father shockingly suffocated when she was six during a sea shore side occasion. She experienced childhood in Belgium, yet during the First World War, her mom moved them to Paris for a year, and afterward came back to Belgium one year later. She was shown English by a British Governess and exceeded expectations in her homework. By the age of twelve, Madeleine needed to be a religious recluse. She was motivated by Father Damien, a Catholic Priest who helped Leprosy victims in Hawaii. In the wake of finding out about demonstrations of good cause, Madeleine Cinquin chose to utilize every one of her endeavors to helping the individuals who were not as lucky as she seemed to be. She joined the Order of Our Lady of Sion and changed her name to Sister Emmanuelle when she took her pledges in 1923. Emmanuelle implies God is with us. She instructed in religious circle schools for wealthy youngsters, however Sister Emmanuelle felt that she should utilize her instructing aptitudes to instruct those less blessed kids, so she stopped educating in Turkey and Tunisia and seeked in aiding those in Egypt. A Popes agent knew about Sister Emmanuelle wishes and proposed she helped the a huge number of deny authorities known as the zabaleen in Egypt. The zabaleen, which implies foulness or waste, lived on the edges of Egypt at a trash dump called Ezbet El Nakhl. Ezbet El Nakhl was a filthy spot occupied by decline gatherers who gathered the waste of Egypt for next to no compensation and lived in a poor, messy and unhygienic spot where the trash of Egypt was put away and arranged. The kids were uneducated and had no chance to get of engaging themselves so they stumbled into difficulty. Sister Emmanuelle moved into Ezbet El Nakhl in 1971 and lived in a little one lives cabin with not very many belongings. She was 60 years of age at that point. She chose to surrender her extravagances and live like the numerous zabaleen companions that she had made. She went into the city ordinarily at 5 oclock toward the beginning of the day for mass at the city religious circle. Sister Emmanuelle lived with almost no food and needed to endure the numerous issues that the zabaleen lived with, similar to white worms in food supplies and lodging, bugs and infection. Sister Emmanuelle had not been at Ezbet El Nakhl long when she chose to open a school in her extra room. She acknowledged any offspring of any religion who was happy to learn. Sister Emmanuelle took her little class on many field outings to Egypt and for some, it was their first time into Egypt separated from gathering waste. She opened a school for men and many appeared at get familiar with the Arabic letter set. Sister Emmanuelle was frantic for an adolescent club and focus to support the Zabaleen. She set about gathering 15 000 from the nearby causes and help assets around Europe. She at last accomplished this two years after the fact. A kitchen, club, pool, football field and parlor was set up for the young people of the Ezbet El Nakhl. She considered it the 'Salam Center,' which is Arabic for harmony. It was opened on the 29th of March in 1979 and the inside additionally gives social, clinical, social and instructive assistance. At the point when Sister Emmanuelle was happy with her work at Ezbet El Nakhl, she proceeded onward to Mokkatam; a reject authorities dump which was in more terrible condition than Ezbet El Nakhl. Sister Emmanuelle began crafted by gathering cash from noble cause to fabricate a manufacturing plant for treating the soil material, which she at last accomplished. Sister Emmanuelles work in the waste ghettos contributed incredibly to the advancement and everyday environments in the deny gatherers lives. Indeed, even at 77 years old, she was all the while gathering cash for the deny authorities. B. Sister Emmanuelles Christian Motivation In Sister Emanuelle's initial life, she was intensely impacted by Christian confidence and numerous Christians were her inspiration. Through compelling creatures, Sister Emmanuelle turned into an individual who was eager to help other people and dedicate her aptitudes for the requirements of others. At the point when Sister Emmanuelle was eleven,

Issues Concerning Domestic Violence Essay Example

Issues Concerning Domestic Violence Paper One of the most muddled issues confronting most human services experts and legislative offices today is that of aggressive behavior at home. Aggressive behavior at home incorporates any brutality that is perpetrated upon one relative by another relative. In this way, abusive behavior at home can be depicted as companion misuse, youngster misuse, kin misuse, or senior maltreatment. Most specialists propose that abusive behavior at home is normally communicated in viciousness against ladies and youngsters. Such demonstrations of brutality can include social insurance experts in the treatment of physical wounds, the mental effect upon the person in question, or the forceful conduct of the abuser. Regularly legislative offices are called upon to examine such issues to guarantee the wellbeing of the people in question or to decide suitable discipline for the guilty party. Be that as it may, given the significance of the bonds and privileges of the family that our way of life keeps up, it is hard to decide when the circumstance at home â€Å"is no one’s business† and when it merits intercession from outside gatherings so as to ensure the government assistance of those included. In spite of these challenges and complexities, aggressive behavior at home is viewed as an overall medical issue requiring pressing mediation. We will compose a custom exposition test on Issues Concerning Domestic Violence explicitly for you for just $16.38 $13.9/page Request now We will compose a custom paper test on Issues Concerning Domestic Violence explicitly for you FOR ONLY $16.38 $13.9/page Recruit Writer We will compose a custom paper test on Issues Concerning Domestic Violence explicitly for you FOR ONLY $16.38 $13.9/page Recruit Writer Physical maltreatment takes numerous structures including hitting, punching, pulling hair, slapping, snatching, gnawing, kicking, breaking bones, wounding, consuming, turning arms, tossing casualties against dividers and furniture, tossing items and utilizing weapons. It likewise incorporates harming family unit products, executing pets, and refusal of human needs, similar to rest and sustenance. Ambush can be of a dangerous sort bringing about broken bones, unsuccessful labors and different genuine wounds. A considerable extent of casualties are undermined or ambushed with weapons, for example, blades, guns and tomahawks. Physical viciousness can bring about homicide and regularly prompts genuine physical injury. The wounds are not constantly clear as abusers regularly ensure the indications of their assaults are covered up under apparel. For some ladies there is a genuine and consistent danger of death on account of the earnestness of the maltreatment. Sexual maltreatment in the house is abusive behavior at home. Sex without assent is rape. Rape could possibly include physical power. Sexual maltreatment is undesirable sexual contact. Numerous men despite everything accept that they reserve the privilege to boundless sexual access to their spouses. Obnoxious attack comprises of censorious remarks, affront and steady put-downs. Absence of physical allure, mediocrity, failure to adapt and prevail all alone and being informed that she is certifiably not a decent mother/spouse/maid. After some time this steady embarrassment will wreck a womens confidence in herself and seriously influence her confidence. She starts to take on the damaging portrayals as though they are genuine and along these lines may begin to accept that shes useless, that the viciousness is her issue. It must be remembered that obligation regarding the brutality lies exclusively with the culprit, not the person in question. Dangers are normal type of boisterous attack, planned for threatening the lady to such and degree that the abuser is in absolute control. Dangers by a man to execute a lady in the event that she leaves him are regularly revealed by survivors of abusive behavior at home. Psychological mistreatment firmly connected to obnoxious attack, these practices are additionally planned for threatening the person in question and stripping her of her fearlessness. Practices incorporate pulverizing family unit/individual property intentionally harming/harming/murdering residential pets, hardship of basic individual needs, for example, nourishment, rest, clean things ect. The force which they provide so as to control and threaten the other accomplice. A scope of conduct is included, including obnoxious attack proposed to crush different people confidence. For instance, a culprits conduct may prompt his accomplice to accept she is crazy, inept or futile. The impact is regularly combined, happening over an extensive stretch of time with harming ramifications for the mishandled people feeling of self. Otherworldly maltreatment depicts the harm viciousness does to the soul of the individuals who have been manhandled. For certain ladies this can't be compared with mental or psychological mistreatment. otherworldly viciousness is more profound than a people understanding of disloyalty: it includes the disgrace experienced when everybody in the network knows about the brutality, and when they also are involved as survivors of the savagery. Exploitation might be founded on race, shading, or different types of distinguishing proof with that network , and it incorporates the maltreatment experienced a background marked by annihilation or mistreatment. Monetary maltreatment this happens where the man has all out command over every single money related asset. For instance, he may deny the lady to work or on the off chance that she does he may demand that she hands over her check to him unopened. She may need to ask for cash to purchase necessities and when it is given it might frequently be lacking. She is then scrutinized for being moronic or awkward in neglecting to give satisfactorily this entirety. Social maltreatment incorporates conveying obnoxious attack before others, for example, put-down, jokes, reactions about the womans weight, appearance, sexuality, knowledge ect. Controlling practices, for example, following her to work, controlling access to companions, consistent calls at work or allegations of envisioned issues ect. Secluding a lady by stigmatizing her loved ones, along these lines driving her to cut herself off on the grounds that she fears angering her better half, securing the ladies or out of the house, removing the phone, never letting her utilization the vehicle ect. Social maltreatment is the steady observing and control of a womens exercises, trips, and companionships. She might be compelled to account herself for her every development, and my be denied the option to leave the home and see her companions. The outcome for the mishandled lady can be open embarrassment and seclusion from companions and different individuals from her family. For a considerable length of time, the maltreatment of spouses by their husbands has been endured by most social orders. In certain societies, it was viewed as a piece of wedded life, a strategy for adequate control. Since men were paid through shares to deal with spouses, the thought was that wives were viewed as property similarly that youngsters were seen. Subsequently, specialists frequently accept that it is improper to meddle in the connection between a man and his significant other or kids. â€Å"There is by all accounts a verifiable, underestimated social standard which makes it genuine for relatives to hit one another. In regard to married couples, as a result, this implies the marriage permit is likewise a hitting license†. As a matter of fact, there is no equity with respect to married couples hitting each other. Moreover, Congress and state lawmaking bodies have passed laws that have helped in the assurance of casualties of aggressive behavior at home and the arraignment of guilty parties. For example,the Child Abuse Prevention and Treatment Act was passed by Congress in 1974 to help states and networks compose programs for guardians who misuse their youngsters. Additionally in 1974, the National Institute of Mental Health built up a national community in Denver to consider the issue all the more altogether and set up a national commission to determine the muddled lawful issues and suggest changes in government and state laws including youngster misuse. Award programs have additionally been supported to recognize the reasons for kid manhandle and give treatment through self improvement projects and lay treatment. Progressively, states are requiring social laborers and clinicians to report all instances of known or suspected youngster maltreatment to kid security experts in their networks. The Cycle of Domestic Violence shows how abusive behavior at home frequently turns into an example contained three phases. The stages fluctuate in time and in seriousness among couples, and even at various occasions inside a similar relationship. It is, at that point, hard to foresee to what extent a couple will stay in one stage or to decide the length of an individual couple’s cycle. Stage 1 is the Tension-Building Phase, which comprises analysis, hollering, swearing, and utilizing furious signals, intimidation, and additionally dangers. Stage 2 is the Violence Phase, which is described by physical and sexual assaults and dangers. Stage 3 is the Seduction Phase that is depicted with statements of regret, accusing, vows to change, and blessings. It additionally clarifies how three elements †(1) love, (2) expectation, and (3) dread keep the cycle moving and make it hard to cut off a rough association. For delineation, (1) Love for one’s accomplice: ‘the relationship has it’s valid statements, it’s not all bad†. (2) Hope that it will change: ‘the relationship didn’t start like this’. (3) Fear that the dangers to execute you or your family will turn into a reality. The Cycle Of Violence PHASE 1: TENSION BUILDING Poor correspondence/arrangement of minor occurrences/diminished control Compliant/great conduct/encounters/expanded strain/limits issues/builds dangers/denies outrage/takes more control/pulls back/controls increasingly/pressure unbearable PHASE 2: ACUTE BATTERING Increased pressure and injury/loss of control Unpredictable, claims loss of control/is defenseless, feels caught/exceptionally oppressive/damaged PHASE 3: KINDNESS AND LOVING BEHAVIOR Tension drops/Renewed love/Increased Tension Often regretful, mindful/blended emotions/is manipulative/feels remorseful also, mindful/pr

Essay Samples For NHS

Essay Samples For NHSNow that you have figured out which site you want to send your electronic submission to, now is the time to find out where to find essay samples for NHS. It is very difficult to find for one reason that very little is published about the subject so if you want to research this topic, you will have to learn more about what the examiners are looking for when reviewing submissions. This is a field that is going to continue to expand over the next few years and even as the EU reaches greater levels of depth and maturity.One of the best places to start looking at essay samples for NHS is the National Institute for Health and Clinical Excellence (NICE). NICE is a scientific research body, who are tasked with evaluating the quality of medical practice within the NHS and recommending improvements which should help increase efficiency and reduce cost to the taxpayer. So, it is a good place to start searching to see if you are a good candidate for the exam.To find out what they are looking for, look to the search box and type the word 'papers' and click search. You will then get a list of papers with links to look further into. Once you have done this you should then click on the titles for the essays that you found.Most of the materials that you get are to be used for the doctors and nurses within the NHS who are in the first year of their careers, so you will only find a handful of papers available for this. However, there is a good variety of papers that you will be able to find that will give you a good idea of what you will need to do to prepare.When it comes to what you are expected to say in your essay, it is best to make sure that you base your thoughts on current medical practices and actual patient care so that you can make a fully informed essay. With the many different situations in which a doctor can encounter, it is important that you look at the situations that you might need to deal with and take the best of the situation into account .With the large number of papers on offer from the academics, practitioners and hospital managers who make up the NICE you should have no trouble at all. There is also the fact that these essays will help to help to boost your confidence in your ability to write a good essay, so they are worth taking a look at. These essays are part of the exam, so make sure that you study hard so that you can pass them with flying colours.So, now that you have looked at the essay samples for NHS, you will know where to find them and have a better idea of what you will need to do. So, you can now start creating your medical essay and see how you do.

The Development Of Decision Making - 1238 Words

The Development of Decision-Making in Nursing Nursing is a profession that has traditionally attracted individuals who have a desire to help others and have an interest in the health sciences (Ruesink, 2012). In the complex world of health care, good intentions only go so far in terms of client safety, quality of care, and achieving the best possible outcomes, and that is why critical thinking, decision making, and evidence based practice are crucial to the nursing profession when acting on the behalf of our clients (Fero, Witsberger, Wesmiller, Zullo, Hoffman, 2009; Ruesink, 2012; Thompson, Aitken, Doran, Dowding, 2013). In this paper I will discuss and explore three decision-making models that support nursing decision-making, how†¦show more content†¦The College of Registered Nurses of British Columbia (CRNBC), defines Clinical decision-making as: A complex and dynamic process, occurring within a larger context and drawing from various dimensions of knowledge, in which nurses collect and organize information in order to form conclusions and choose actions, with the intent of creating the best outcomes for clients (2014, slide 19). The nursing profession demands a high standard of quality and safety, compelling nurses to act professionally, be accountable for their own actions, and embrace their Professional Standards (CRNBC, 2013). The CRNBC Professional Standards requires nurses to know where to access information to support their knowledge to deliver evidence-based, competent nursing care, as well as use decision-making tools to guide their assessments, diagnoses, and treatments (2013). For nurses to make clinical decisions that enhance a client’s health, promote realistic solutions, and reduce potential risks, decision making and critical thinking must happen in sync (Fero et al., 2009; Standing, 2005). To support critical thinking in nursing practice, and help novice nurses compensate for the lack of clinical experience, decision-making models have been constructed to help navigate the multi-dimensional complexities of the

The Theory Of Child Sexual Abuse - 901 Words

After reading the article by Rind, Tromovich, and Baserman, and the other associated commentaries I have drawn a few conclusions. First I do not believe in the Rind et al. s final theory that child sexual abuse does not cause intense and extensive harm in the long term. However, I do not fully renounce all of his theories. I have concluded that their final theory needed more precise research and there were holes in their research and theory. I also believe that they did not consider the impact that their article would have on the psychological community, politics, and personal emotional impact. After I read the first article from Rind et al s, I felt shock and anger from the content. I understood that what they wanted to answer a few key questions such as, does child sexual assault (CSA) cause harm, will the harm be intense, and is the experience similar for both boys and girls in terms of the negative effects. I felt that the article minimized CSA and the effects it has on the victi ms. On page 26 in the left-hand column, Rind states that, â€Å"CSA does not typically have intensely negative psychological effects. Almost the exact same sentence was repeated on page 46 in the right-hand column. On that same page, it inferred that adult-child sex and adult-adolescent sex was considered normal in some populations. That may be true, but children and adolescents should not be exposed to that at such a young age where they are not fully developed. In the rebuttal article byShow MoreRelatedChild Abuse Is A Serious Concern Of Society1570 Words   |  7 PagesIntroduction Child abuse is a serious concern of society because of the negative effects on later social and psychological functioning. Particularly, the concern of ‘the cycle of violence hypothesis’ which is one of the most influential conceptual models for antisocial behaviour in the social and behavioural science (DeLisi, Kosloski, Vaughn, Caudill, Trulson, 2014; Lansford, Miller-Johnson, Berlin, Dodge, Bates, Pettit, 2007). Numerous studies have documented the association between childhoodRead MorePedophilia and Deviant Behavior1695 Words   |  7 Pagesdisorder characterized by the urge to have sexual relations with those of a non-consenting age. Initially this paper will examine why exactly this is a deviant behavior. We will then go on to analyze their structural organization. Why people would want membership in such a group will then be scrutinized. An in-depth examination of what causative factors exist that contribute to this form of deviance will then ensue. We will con clude with the various theories of deviance that could further explain theRead MorePsychological Factors That Cause Offending Behavior803 Words   |  4 PagesSince the emergence of methods, theories and practice in the late nineteen century in the laboratory of William Wundt in Germany, Psychology as a science has evolved to apply its principles in areas such as education, arts and law, but not limited to. Therefore, in time, psychological theories and practices have emerged in an attempt to aid the legal process and explain those psychological factors that cause offending behaviour. Forensic psychology applies theories and findings from different areasRead MoreChild Abuse And Its Effects On Children1317 Words   |  6 PagesChild abuse has long been an ongoing social problem; this abuse has been one of the repeatedly difficult accusations to prove in our criminal justice system. Child abuse causes many years of suffering for victims. Children abused suffer from chemical imbalanc es, behavioral issues and are at high risk for becoming abusers or being abused in adult relationships. This cycle of learned behavior and suffering will be a hopeless reoccurring problem unless the criminal justice system and protocols for abusersRead MoreEffects Of Child Sexual Abuse On Marriage Essay1302 Words   |  6 PagesEffects of Child Sexual Abuse on Marriage There are many types of abuse: physical, mental, emotional, and sexual. Each has different outcomes for the victim and long term effects. Abuse can play a huge role into how victim’s romantic relationships play out. There are even more negative effects when the abuse happens as a child verse an adult. There has been research done over the years for each type of abuse and at different ages, but the focus here is on sexual abuse in children, and how it affectsRead MoreFrom the beginning of a child’s life, he/she holds the key to their own destiny. However, this is1000 Words   |  4 Pagesthe beginning of a child’s life, he/she holds the key to their own destiny. However, this is no longer the case when child sexual abuse is brought in as a factor. In surveys conducted, it was indicated that six percent to sixty-two percent of women and two percent to fifteen percent of men have been victims of sexual abuse as a child (Finkelhor 79). That was not their choice. Abuse is the result of force - not from a person’s willingness to fulfill an act. Victims also have to cope with the aftereffectsRead MoreModels of Abuse1454 Words   |  6 PagesModels of Abuse This essay will describe the models of abuse and compare them; there has been some controversy over these and this will be lightly discussed. Psychological Model of Abuse - Also known as emotional or mental abuse Emotional abuse can be described as constantly mistreating a child and therefore affecting their emotional state and development. Emotional abuse can be inflicted upon a child in many different ways; these can include telling a child that they are â€Å"worthlessRead MoreCrimes Against Children1739 Words   |  7 PagesTechniques for Successful Outcomes ABSTRACT Child abuse clearly has a negative impact on children and can result in behavioral, cognitive, emotional, and developmental difficulties. This may lead to greater difficulties later in life that will extend into adulthood. The use of proper investigation techniques and appropriate handling of cases, however, can result in less traumatization for child abuse victims. I. Introduction AccordingRead MorePsychological Dispositions: Pedophilia and Paraphilia Essay1386 Words   |  6 PagesParaphilia is a condition where sexual arousal is dependent on fantasizing about engaging in sexual behavior considered atypical or extreme (Psychology Today, 2014). Pedophilia and other paraphilia are viewed as mental illness that is abnormal, distasteful, weird, kinky and totally unacceptable by most people (Psychology Today, 2014). One of the most hated, reviled, and public enraging individuals in society is a pedophile. Most equate pedophilia with a sexual molester of children or some sortRead MoreThe, Better Know By Her Pen Name Sapphire1133 Words   |  5 Pagesaccurate stories of childhood sexual abuse and trauma. Her 1996 novel Push  tells the story of Claireece â€Å"Precious† Jones, an illiterate black street girl, sixteen years old and pregnant with her father’s second child. Lofton was the victim of childhood sexual assault. In 2010 she told the London Evening Standard that her father had molested her at age 8. Her mother abandoned their family five years later. Lofton experienced first hand what the consequences of child abuse caused to her family. The result

Case Study - Research Method free essay sample

Case studies are an important research method in areas where innovations are studied. They enable us to study contemporary and complex social phenomena in their natural context. Over the years researchers working from both epistemological perspectives have addressed important methodological issues. A case study is expected to capture the complexity of a single case, and the methodology which enables this has developed not only in the social sciences, such as psychology, sociology, anthropology, and economics, but also in practice-oriented fields such as environmental studies, business studies, social work and Counselling. Explains that there are four questions which are basic elements of any research process. What methods do we propose to use? What methodology governs our choice and use of methods? What theoretical perspective lies behind the methodology in question? What epistemology informs this theoretical perspective? This paper is written to present the case study as a research approach, showing that its characterization is not an easy task, due mainly to its many different approaches and applications. In order to demonstrate its application, I have indicated its most common advantages and disadvantages, stressing the important role played by the researcher, who must be careful about generalizations. Soy (1997) The case study approach refers to a group of methods which emphasize qualitative analysis Yin, (1984, p. 23) simplifies it as, data collected from a small number of associations through methods such as participant-observation, in-depth interviews, and longitudinal studies. The essence of case study methodology is triangulation, the combination on different levels of techniques, methods, strategies, or theories. Crotty (1998, p. 5) explains that research conducted using the data collection method of participant observation, is one of many theoretical perspectives which exemplify a constructionist epistemology. Yin (1984, p. 23) clarifies that case studies are conducted from the positivist as well as from the interpretist epistemological perspective. What is a Case Study? A case study is a research methodology common in social science. Stake (1998, p. 7) points out that â€Å"As a form of research, case study is defined by interest in individual cases, not by the methods of inquiry used†. He goes on to explain that the methods of investigation are not what’s crucial to case study research, but that the object of study is a ‘case’. Skate (1978, p. 5) states that â€Å"case studies will often be the preferred method of research because they may be epistemologically in harmony with the readers experience and thus to that person a natural basis for generalization† The term CASE STUDY is used in a variety of ways: 1. As an alternative to experimental (scientific) and quantitative (positivist) methods. 2. As an intensive investigation of single situations which serve to identify and describe basic phenomena. 3. Focusing on individuals perceptions of given educational phenomena, carried out largely by means of interviews. 4. As a study which is almost entirely qualitative in methodology and presentation. 5. As a type of ethnographic research, incorporating participant observation, qualitative observation and field study. (Ethnographic studies are those that take place within a definable cultural setting). Yin (2003) in Hayes (2006) The Wikipedia gives Thomas’s (2011) definition as: Case studies are analyses of persons, events, decisions, periods, projects, policies, institutions, or other systems that are studied holistically by one or more methods. The case that is the subject of the inquiry will be an instance of a class of phenomena that provides an analytical frame an object within which the study is conducted and which the case illuminates and explicates. Thomas’s (2011) . Yin (1984, p. 23) defines the case study research method as an â€Å"empirical inquiry that investigates a contemporary phenomenon within its real-life context; when the boundaries between phenomenon and context are not clearly evident; and in which multiple sources of evidence are used†. He explains that case studies are conducted from the positivist as well as from the interpretist epistemological perspective, and places more emphasis on the ‘method’ and the ‘techniques’ that constitute a case study. The case study approach seeks to understand the problem being investigated. â€Å"It provides the opportunity to ask penetrating questions and to capture the richness of organizational behaviour, but the conclusions drawn may be specific to the particular organizations studied and may not be generalizable† Yin (1984, p. 23) Case studies are characterised by the following a. Data are usually qualitative rather than quantitative. It’s not that the numbers are unimportant but that they are relatively insignificant to the outcome. b. Data are not manipulated (the truth is told plainly). The issue of what ‘truth’ means is then raised. c. Studies mainly focus on single cases (but can include multiple ones). d. Ambiguity in observation and report is tolerated (rather than absolute outcomes). This means that there may not be clinical, clearly defined solutions. e. Multiple perspectives are sought. This means that the opinions and perceptions of many people may be requested. f. Holism (the sum of the parts is greater than the whole) is advocated. This means that the greater the range of data, the better. g. A search for understanding (for example, by reference to context or history) rather than mere explanation. Kenny Groteleuschen (1984) Yin (1993) has identified some specific types of case studies: Exploratory, Explanatory, and Descriptive. Stake (1998) included three others: intrinsic, instrumental and collective. An intrinsic case study is typically undertaken to learn about a unique phenomenon. The researcher should define the uniqueness of the phenomenon, which distinguishes it from all others. In contrast, the instrumental case study uses a particular case (some of which may be better than others) to gain a broader appreciation of an issue or phenomenon. History of the Case study It is generally believed that the case-study method was first introduced into social science by Frederic Le Play in 1829 as a handmaiden to statistics in his studies of family budgets. Les Ouvriers Europeens (1879) in . The use of case studies for the creation of new theory in social sciences has been further developed by the sociologists Barney Glaser and Anselm Strauss who presented their research method, Grounded theory, in 1967. The popularity of case studies in testing hypotheses has developed only in recent decades. Case studies have also been used as a teaching method and as part of professional development, especially in business and legal education. The problem-based learning (PBL) movement is such an example. When used in (non-business) education and professional development and are often referred to as critical incidents. Advantages of a Case Study †¢Case studies allow a lot of detail to be collected. Normally this would not be easily obtained by other research designs. The collected data is normally of a greater depth and a lot richer than can be found through other experimental designs. †¢Case studies tend to be conducted on rare cases where large samples of similar participants are not available. As an example, to be able to gain knowledge of brain functions, this can only generally be done through case studies. †¢Within the case study, scientific experiments can be conducted. Case studies can help experimenters adapt ideas and produce novel hypotheses which can be used for later testing. †¢Knowledge! A lot of the research obtained through case studies is invaluable. Disadvantages of a Case Study †¢One of the main criticisms is that the data collected cannot necessarily be generalised to the wider population. This means that a lot of the data being collected is not always relevant or particularly useful. †¢Some case studies are not scientific. There have been quite a few case studies that are not scientific nor are they able to be generalised. Some of the case studies that Freud used for many of his theories or studies were not scientific. †¢Case studies are generally on one person, but there also tends to only be one experimenter collecting the data. Results can sometimes be influenced by the bias of the data collector, which is more applicable to case studies, than in different designs. †¢It is also very difficult to draw a definite cause/effect from case studies. Case studies also tend to collect mainly qualitative data. This has been put as neither an advantage or disadvantage, depending on the individual’s stance on qualitative data. Advantages and Disadvantages of Case Study Research (2013) Many well-known case study researchers such as Robert E. Stake, Robert K. Yin and Gary Thomas, have written about case study research and recommended techniques for organizing and conducting the research successfully. They suggest the six steps that should be used are: †¢Determine and define the research questions †¢Select the cases and determine data gathering and analysis techniques †¢Prepare to collect the data †¢Collect data in the field †¢Evaluate and analyse the data †¢Prepare the report Conclusion A case study can accomplish many of the same goals as other methods. For example, the case study can be exploratory (create new knowledge), constructive (solve some problem), or confirmatory (test a hypothesis with empirical evidence). The case study can also use either a primary (the researcher collects the data) or secondary (the researcher uses someone elses data) approach. Case study research can be based on any mix of quantitative and qualitative approaches. An important strength of case studies is the ability to undertake an investigation into a phenomenon in its context. It is important not to confuse case studies with ethnographic and other strictly qualitative research paradigms. Typically, it uses multiple data sources including direct detailed observations, interviews, and documents. Stake (1998, p. 7) states â€Å"Case studies are likely to continue to be popular because of their style and to be useful for exploration for those who search for explanatory laws. And, moreover, because of the universality and importance of experiential understanding, and because of their compatibility with such understanding, case studies can be expected to continue to have an epistemological advantage over other inquiry methods as a basis for naturalistic generalization†. Case studies are a valuable way of looking at the world around us. References The Advantages and Disadvantages of Case Study Research www. ukessays. com/essays/psychology/the-advantages-and-disadvantages-of-case-study-research-psychology-essay. php#ixzz2RC7oeWP6 accessed 9 May 2013 Crotty, M. (1998) The foundations of social science research:meaning and perspective in the research process,New SouthWales, Allen and Uwi Gorard, G. (2004). Combining methods in educational and social research. Berkshire: Open University Press Hayes,D. (2006) Faculty of Education, University of Plymouth, History of a case study . Accessed 8th May 2013 Kenny R. W. Groteleuschen A. D. (1984). ‘Making the Case for Case Study’ Journal of Curriculum studies, 16, pp. 37-31 Mertens, D. M. (2005). Research methods in education and psychology: Integrating diversity with quantitative and qualitative approaches. (2nd ed. ) Thousand Oaks: Sage. Soy, S K. (1997). The case study as a research method. Unpublished paper, University of Texas at Austin. Stake, R. E. (1978). The case study method in social inquiry. Educational Researcher 7: 5-8 Stake, Robert. (1995). The Art of case study Research. Thousand Oaks, London, Sage. Stake, Robert. (1998). â€Å"Case Studies† in: Norman Denzin Yvonna Lincoln. (eds. ): Strategies of Qualitative Inquiry. Thousand Oaks, London, New Delhi: Sage. Thomas, G (2011) A typology for the case study in social science following a review of definition, discourse and structure. Qualitative Inquiry, 17, 6, 511-521 . Yin, R. (1984,1989, 1994,2009). Case study research: Design and methods (1st ed. ). Beverly Hills, CA: Sage Publishing. Yin, R. (199). Applications of case study research. Newbury Park, CA: Sage

LIT 12 Beowulf Reading Check Flashcard

LIT 12 Beowulf Reading Check

Free Essays on Stability and Continuity

The Importance of Stability and Continuity Stability is important, because it helps to predict how an individual criminal behavior will be in the future based on what they have done in the past. Studies have shown that those individuals that have criminal records as adults, had behaviors as toddlers or teenagers that demonstrated that there would be problems in the future. The theory is that the past will predict the future based on how frequent these behavior patterns occurred and if those crimes committed decreased or increase in the seriousness of the crime. However, this becomes a tricky situation, because children are capable of change, but their behavior as children does play a major role in the criminal activities that they engage in as teenagers and adults. If a child is born into a family that has a criminal past are likely to have a criminal past themselves. Many believe this to be the case, because the child grows up within an environment of negative influences and as a result, they know nothing different and don’t have positive influences to encourage them to do better. If these issues of aggression that could and probably will lead to criminal behavior, are addressed at an early age, the better the chances of intervention. With the proper treatment and guidance as children, offenders could be law abiding citizens, instead of offenders. This is why stability is so important, since it is stability that will give the information necessary to determine the likelihood of a child of teenager becoming an offender. It would be these warning signs that would be used to determine the type of intervention to be used to prevent criminal activity. Children are vulnerable, because they aren’t able to make sense of what they are doing as being wrong, if they have seen individuals within their family and outside their family conduct criminal activity. Different issues play major parts in behavior especially when dealing with chil... Free Essays on Stability and Continuity Free Essays on Stability and Continuity The Importance of Stability and Continuity Stability is important, because it helps to predict how an individual criminal behavior will be in the future based on what they have done in the past. Studies have shown that those individuals that have criminal records as adults, had behaviors as toddlers or teenagers that demonstrated that there would be problems in the future. The theory is that the past will predict the future based on how frequent these behavior patterns occurred and if those crimes committed decreased or increase in the seriousness of the crime. However, this becomes a tricky situation, because children are capable of change, but their behavior as children does play a major role in the criminal activities that they engage in as teenagers and adults. If a child is born into a family that has a criminal past are likely to have a criminal past themselves. Many believe this to be the case, because the child grows up within an environment of negative influences and as a result, they know nothing different and don’t have positive influences to encourage them to do better. If these issues of aggression that could and probably will lead to criminal behavior, are addressed at an early age, the better the chances of intervention. With the proper treatment and guidance as children, offenders could be law abiding citizens, instead of offenders. This is why stability is so important, since it is stability that will give the information necessary to determine the likelihood of a child of teenager becoming an offender. It would be these warning signs that would be used to determine the type of intervention to be used to prevent criminal activity. Children are vulnerable, because they aren’t able to make sense of what they are doing as being wrong, if they have seen individuals within their family and outside their family conduct criminal activity. Different issues play major parts in behavior especially when dealing with chil...

Interpersonal effectiveness - Negotiation theme Research Paper

Interpersonal effectiveness - Negotiation theme - Research Paper Example Informal negotiations are dialogue processes that take unstructured formula. It can be execute by the parties themselves under common agreement. It is crucial in finding solutions to internal or low profile conflicts that affect individuals. As noted by scholars for negotiations to yield best results the parties involved must exhibit realistic ideals, they must set reasonable, specific and attainable demands. This is to facilitate the development of amicable resolution with the capacity to satisfy the parties. Indeed, negotiation skills are fundamental in managing conflicts of the diverse nature and restoring mutual relationship. This is crucial especially with the increased challenges that affect individuals at a personal level or in organizational settings. It is imperative to note that negotiation is an effective and diplomatic way of finding viable solutions to various issues of contention between constrained parties (Harvard Business School, 278). It has been used in finding solutions in diverse settings of different nature that include political, social, economic and working relationship issues, for example, in Wal-Mart company. Companies are encouraged to initiate effective dialogue with their stakeholders when issues of dispute of arise. This is to facilitate the development of sustainable resolutions that are acceptable to all parties and that restores confidence. This paper discusses negotiation as an aspect of interpersonal effectiveness with Wal-Mart Company being under study. As noted, negotiation is a dialogue process that occurs between two or more parties with an intention of resolving or managing evident conflict that may compromise performance. Negotiations take place in business, non-profit making institutions and government bodies. The main aim of negotiation is engage the conflicting parties purposely to understand their positions or needs

Investment and Portfolio Managment Essay Example | Topics and Well Written Essays - 5250 words

Investment and Portfolio Managment - Essay Example Investors must take account of the interplay between asset returns when evaluating the risk of portfolio at a most basic level; for example, an insurance contract serves to reduce risk by providing a large payoff when another part of the portfolio is faring poorly. A fire insurance policy pays off when another asset in the portfolio-a house or factory, for example-suffers a big loss in value. The offsetting pattern of returns on these two assets (the house and the insurance policy) stabilizes the risk of the overall portfolio. Investing in an asset with a payoff pattern that offsets exposure to a particular source of risk is called hedging. Anther means to control portfolio risk is diversification, whereby investments are made in a wide variety of assets so that exposure to the risk of any particular security is limited. By placing one's eggs in many baskets, overall portfolio risk actually may be less than the risk of any component security considered in isolation. So, using portfolio is very much important in investment decision-making Prof Stein should protect the value of his shares before the company issues an IPO by using derivative products such as options, forwards and futures. Derivative products help to avoid risk of price fluctuations and others. In hedging, Derivatives are tools for changing the firm's risk exposure. A derivative is a financial instrument whose payoffs and values is derived from, or depends on, something else. For example, an option is a derivative. The value of a call option depends on the value of the underlying stock on which it is written. Actually; call options are quite complicated examples of derivatives. The vast majority of derivatives are simpler than call options. Most derivatives are forward or futures agreements or what are called swaps. An unlimited variety of payoff patterns can be achieved by combining puts and calls with various exercise prices. Some strategies are discussed below: Protective Put: Under this one would like to invest in a stick, but one is willing to bear potential losses beyond some given level of investing in the stock alone seems risky to one because in principle one could lose all the money one invest. One might

Mytaxi (Intelligent Apps Gmbh) Extension from Germany to the Philippines Essay Example for Free

Mytaxi (Intelligent Apps Gmbh) Extension from Germany to the Philippines Essay Original paper is full of Appendices. You may get in touch with me if you would like to have a copy of the FULL VERSION with external links, charts, images, etc. PROJECT PROPOSAL: myTaxi HOME COUNTRY: Germany TARGET COUNTRY: Philippines OBJECTIVE: To expand the usage of the myTaxi (Intelligent Apps GmbH) application to Filipino Smartphone Users-Taxi Drivers PRODUCT INFORMATION Developed by Niclaus Mewes and Sven Kuelper in 2009, myTaxi is a Smartphone application that directly connects Taxi driver and passenger, enabling more efficient pick-up and drop-off transportation services. CATEGORY: Travel / Transportation TARGET USERS: Taxi Drivers, Taxi Passengers, Taxi Corporations CURRENT MARKETS: (Domestic) Germany: Berlin, Bonn, Cologne, Dortmund, Dusseldorf, Frankfurt, Hamburg, Hannover, Leipzig, Munich, Nuremburg, Stuttgart, Sylt (Regiocentric) Vienna: Austria Spain: Barcelona, Madrid Poland: Warsaw (Geocentric) Washington D. C. , United States of America Currently Under Development In: (Germany) Augsburg, Braunschweig, Bremen, Darmstadt, Essen, Heilbronn, Gera, Kaiserslautern, Karlsruhe, Kassel, Leverkusen, Mainz, Offenbach, Potsdam, Salzburg, Wiesbaden, Wurzburg Domestic Market Conditions (2012): Number of Taxi Passengers Per Year: 260 million est. Total Revenue in Taxi Fares: 2. 6 billion Euros Number of Mobile Subscriptions: 114. 2 million Smartphone Market Penetration: 53% Number of 3G/4G Subscriptions: 53. 2 million 3G Market Penetration: 65% REQUIREMENTS: Smartphone (Android or iOS), Internet (at least 500 MB) AVAILABILITY: iTunes (Apple Store) for Apple ; Google Play for Android PRICE: For Passengers: FREE DOWNLOAD (Application) Standard Taxi fares apply with no additional costs for using myTaxi (Transportation Service) For Drivers: 2,75% (net) for every service mediated via myTaxi HOW IT WORKS: For Passengers : Immediately upon opening the application, myTaxi uses GPS to pin point the user’s location. The app will then locate all of the available myTaxis in the area. The user can then send a pick-up request, as well as specify a destination (optional). Once a pick-up is confirmed, the user can see the driver’s information: name, vehicle registration, as well as his rating from other myTaxi users. The user can then track the progress of the Taxi until it picks him up. For Drivers: Taxi drivers need to register with myTaxi in order to be part of the system. This can be done via the myTaxi application, at a myTaxi office, or on the mytaxi. net website . Upon acceptance of a pick-up request, the driver receives the application user’s mobile number in case of extenuating circumstances, such as a traffic jam. FEATURES : †¢Favorite Drivers: Drivers can not only be rated, but also be saved and prioritized for future trips. Fare Calculator : Cost transparency via the integrated fare calculator that may be used before booking a trip. †¢Flexible Payment Options: Users can pay with cash or use credit, debit, or even PayPal. myTaxi has pioneered the cashless and even cardless payment of Taxi trips through the application . †¢Advanced Booking: Bookings can be made up to four days in advance of the user’s desired pick-up date, time, and place. †¢Personalize d Booking Options: Eco-taxis, 5-star Taxis, Airport trips, Luggage, Pet-friendly Taxis, Number of expected passengers TERMS AND CONDITIONS: For Passengers : I. Performance of myTaxi II. Second amendment and termination of service III. Availability IV. Liability V. General Obligations of the user VI. Responsibility for Content VII. Final Provisions For Taxi Driver : I. Gratuitous services of myTaxi II. Settlement of mediation services III. Payment IV. Amendment and termination of service V. Availability VI. General obligations of the user VII. Obligation to accept transfer order VIII. Termination of contract / disqualification of use IX. Rating system X. Responsibility for content XI. Final provisions For Business Accounts : I. Contract II. Contractual obligations of the contractor III. Invoicing by myTaxi IV. Employee Training V. Liability VI. Term and Termination VII. External representation of cooperation VIII. Of assignment, final provisions EXISTING PARTNERSHIPS: Car2Go HRS Ds Hotelportal Miles More Lufthansa Samsung T Mobile AirPlus International myTaxi is an innovative application that combined two different industries: The first is the relatively stable Transportation Industry, wherein passengers are given the option to commute semi-privately via Taxi. The second is the new and booming Smartphone + Internet Industry. The combination of both industries created a product (the application) AND service (the features) that covers both the daily transportation needs of commuters with their want of efficiency, reliability, and personalization in tune with the lifestyle of Today. With all this in mind, it is no surprise that myTaxi first focused on its domestic market to establish its name and create awareness of what they have to offer. Following their domestic success, myTaxi marketed itself to its immediate neighboring countries, a strategic move on their part, since their popularity would logically trickle itself to those right next to them, and not those far away – being involved in Travel and Transportation, this was clearly a logical step. The real trick however, to marketing myTaxi was through partnerships – with individual Taxi drivers and Taxi dispatch companies, and with complementary product brands, such as Samsung wherein the application is pre-installed in all their Smartphone units. Its strength lies mostly in its reputation. In its attempt to expand to the U. S. market, myTaxi had to compete with a few competitors, as the U. S. already had a few Taxi applications to choose from, depending on which city you were in. However, because of its popularity, its brand strength boasting to already have 2. 3 million users, it was able to secure a partnership with the D. C. Taxicab Commission. With their endorsement, myTaxi managed to escalate itself as more legitimate in the eyes of the market than its competitors. Lastly, one must consider that being a pioneer, myTaxi has been and is still reaping the benefits of the First Mover Advantage. It has already created its niche in the Transportation Industry and is transforming the preexisting Taxi market as well. myTaxi was already hailed as one of the top applications of 2012. TARGET MARKET INFORMATION TARGET MARKET: Metro Manila [NCR], Philippines (Lower-Middle Income) (Market Capitalism: constitutional democratic republic) GENERAL DEMOGRAPHICS: Population: 103,775,002 (Philippines, July 2012); 21,050,000 (Metro Manila, 2010) Size: 638. 55 km2 (Total Area) with a density of 18,567/km2 Rate of Urbanization: 2. 3% (2010-2015 estimated) annual rate of change Currency: Philippine Pesos (? Currency Inflation Rate: 2. 6% (March 2012) VEHICLES AND TRAFFIC: Number of Motor Vehicles Registered : 1,740,812 (2012) approx. 30% of total: 6,316,522 Number of Motor Vehicles Registered by Classification : for the entire PH Private: 5,410,783 (2012) approx. 86% of total: 6,316,522 For Hire: 840,974 (2012) approx. 13% of total: 6,316,522 Number of Taxis : 40,000 (2009) for the entire PH Annual Average Daily Traffic: approx. 10,927,245 (2011) vehicles approx. 4,049,314 caused by Passenger Cars (37%) approx. 2,195,860 caused by Utility Passengers (20%) Number of Apprehended Drivers : 14,439 (2012) approx. 2% of total: 761,743 Committed Traffic Violations: 1. RA 8750 Seatbelt Use Act 2. No CR/OR On Hand 3. Obstruction 4. Student Driver Operating an MV w/o Accompanying Licensed Driver 5. Driving w/o License 6. Unregistered/Invalid MV Registration 7. Reckless Driving 8. Driving w/ Delinquent/Invalid, Suspended, Ineffectual or Revoked License 9. No Brake Light 10. No EWD Carried MOBILE PHONES AND INTERNET : Number of Internet Users: 33. 6 million (2012) Internet Usage Growth Rate: 11% (2012) Smartphone Sales Value: $606. 5 million (2011) Number of Smartphone Subscribers: 15 million (2012) Smartphone Subscribers Growth: 38% (2012) Mobile Internet Users: 24% of all Filipino Internet users on a daily basis 56% intend to access the Internet via mobile phone in the next 12 months (2011) Leading Telecommunication Operators : (Q1 2012) †¢Smart Communications, Inc. Market Share: 68% Mobile Connections: 66. 1 million Prepaid Subscribers: 97% of total subscribers 3G Subscribers: 24% of total subscribers †¢Globe Telecom, Inc. Market Share: 32% Mobile Connections: 31 million Prepaid Subscribers: 95% of total subscribers 3G Subscribers: 27% of total subscribers OTHER STATISTICS: Fuel Prices : (as of 11 April 2013) Diesel: ? 40. 00 per liter Unleaded: ? 50. 72 per liter EXPANSION PLAN TO THE PHILIPPINES IMPETUS: Statistics are not needed to see that there are too many cars in Metro Manila, more than what the roads can actually accommodate. Traffic is a serious problem in the city, and though much can be said abou t the many reasons behind it, the reality remains that â€Å"for every bus there are 50 cars on the road† (Murphy, 2010). That is how congested the city roads are. There is definitely a need to limit the number of vehicles, or one day all movements on the streets will come to a stop. A more efficient and trustworthy Taxi-riding environment may encourage people to commute more, instead of driving out in their own cars for the simplest errands, or from even buying their own. A more centralized and systematized Taxi system may also encourage more discipline in drivers AND passengers, for example lessening the number of pick-ups and drop-offs in the middle of the road. ADVANTAGES: †¢EASE: Streets in the Philippines can be tricky . A lot of roads are not frequented by Taxis; Taxis are usually already occupied when spotted on the main roads; There are usually just certain places where Taxis are most available i. e. malls, markets – Getting back from those places may be easy enough, but getting there from wherever is the hard part. Hailing a Taxi is tedious and time-consuming in a busy city like Metro Manila. †¢TRUST: Both for foreigners and locals alike, there is always a chance of hailing a cab that has a fixed Taxi Meter, and you only find out until it is too late. myTaxi’s Fare Calculator works against that. You may also experience a driver bent on swindling you for extra money just because you have luggage or are with someone in need of assistance. With myTaxi’s Personalized Booking Options, you can already pre-bargain with your Taxi driver and let him know what to expect from you. Any additional costs need not be a surprise. †¢SAFETY: If you’re in the middle of nowhere in the middle of the night, order a cab via myTaxi instead of walking around looking for one. †¢FEEDBACK: Taxi drivers usually have no fear because they answer to no one, or at least no one bothers to go through the trouble of reporting them to their supervisors if they have one. yTaxi lets you provide feedback of your trip and your driver, removing them from the service if they have done you any wrong, or warning future passengers. PRICE: For Passengers: Application remains free. For Drivers: Following the 2,75% (net) for every service mediated by myTaxi†¦ Taxi Fare Flag Down Rate: ? 20. 00 ? 1. 50 per 500 meters *There is a possibility however, of lowering the rate to 2% due to Taxi drivers generating a below-average income in the Philippines. Average Income of Taxi Drivers: ? ,500. 00 per week MARKET ENTRY: (Product Extension-Communication Adaptation) Product itself remains relatively unchanged, aside from the necessary calibrations for the myTaxi application to work in Metro Manila. Communication approach will have to be different however, as the Philippines is a completely new market to this type of peer-to-peer service . Communication approach to potential passengers will also differ from potential drivers. Pre-Installed Application in Smartphones Units deployed to the Philippines will already have myTaxi pre-installed like in Germany -Pre-Installation leads to awareness that product is available Constantly seeing application will peak customer’s interest Trying out what this application and how it works leads to its evaluation and trial Upon first succ essful order of Taxi, customer adopts to the usage of the application whenever a Taxi is needed, as well as becoming more confident in exploring its other features Product loyalty is established, as well as recommendation of it to peers -myTaxi avatar/widget to be included in the list of Product Features, both online and in print Personalized Proposals to Taxi Corporations Direct contact between myTaxi Sales Representative/s and owner/manager of Taxi corporation through a meeting -Email point of contact of Taxi corporation a myTaxi business plan and proposal -eAdvertisements Personalized Proposals to Individual Taxi Drivers -Group Learning and Information Sessions managed by myTaxi Sales Representative/s -Free trial period -Flyers distributed in strategic areas -eAdvertisements Partnerships with Transportation-Related Government Offices to Aid in Endorsement of Service -Department of Transportation and Communications: Land Transportation Office [LTO] http://lto. gov. ph/ -Metropoli tan Manila Development Authority [MMDA] http://www. mmda. gov. ph/ Others -myTaxi stickers (on Taxis) to increase awareness and curiosity -myTaxi application to be featured in a local newspaper article LEGALITY AND REGULATIONS : No known regulation for the usage of Smartphone applications in the Philippines. Application is an add-on to an already registered business – whether by the individual Taxi driver or a Taxi Corporation thus, no taxes, licenses, permits, etc. involved. Political, legal, and regulatory environment poses no known risk. See also myTaxi Term and Conditions. CHALLENGES: †¢Limited Features (cabs in the Philippines are not equipped for payments via debit, credit, or PayPal) †¢Training on how to use the application (more for the drivers than the passengers) †¢Investment on Smartphone and Mobile Internet Plan (many options are offered however by Smart and Globe) Hofstede’s Cultural Typologies : Power Distance: Acceptance and willingness to try application by the â€Å"head/leading Taxi driver† or owner/manager of a Taxi corporation is a must. Other drivers will easily follow once connection with the â€Å"boss† is established. Collectivistic: Word-of-mouth will be the strongest marketing tool both for passengers and potential myTaxi drivers. Masculine: Most if not all Taxi drivers in Metro Manila are male. This must be taken into consideration when marketing myTaxi to them. Expect assertive, challenging and highly skeptical questions. Uncertainty Avoidance: Hypothetically no problems in getting Filipinos to accept myTaxi, especially once German origins are made known. Innovation especially American and European ones, are not seen as threatening. Use this as an advantage. Short-Term Orientation: Acceptance of myTaxi â€Å"now† may be achieved, but users, both driver and passenger, may grow bored and/or negligent of the application in the future. Ensure that its long-term advantages are very appealing and well communicated to drivers. Create a dependence on myTaxi for passengers. Sources: AJTP Information Center. (n. d. ). Road Transport Philippines [Data file]. Retrieved May 11, 2013, from http://www. ajtpweb. org/statistics/Philippines/road-transport-philippines Alternat1ve. (n. d. ). Philippine Gasoline Prices (P/li) [Data file]. Retrieved May 12, 2013, from http://www. alternat1ve. com/philippine-gas-prices. php Economic Impact of Traffic in Metro Manila [PDF document]. (2000). Retrieved on May 12, 2013, from http://d0ctrine. files. wordpress. com/2012/09/econ-impacts-of-congestion-coverchap-1-and-2. pdf Europe. (2013). Retrieved May 1, 2013, from http://www. newmediatrendwatch. com/regional-overview/103- europe? start=1 Global mobile statistics 2012 Part B: Mobile Web; mobile broadband penetration; 3G/4G subscribers and networks. (2012). Retrieved May 12, 2013, from http://mobithinking. com/mobile-marketing- tools/latest-mobile-stats/ b#mobilebroadbandcountries Global mobile statistics 2013 Part A: Mobile subscribers; handset market share; mobile operators. (2013). Retrieved May 12, 2013, from http://mobithinking. om/mobile-marketing-tools/latest-mobile-stats/a#topmobilemarkets Globe Telecom. (n. d. ). In Wikipedia. Retrieved May 1, 2013, from http://en. wikipedia. org/wiki/Globe_Telecom myTaxi. (n. d. ). Retrieved May 1, 2013, from http://www. mytaxi. com/home. html Philippines. (n. d. ). In Wikipedia. Retrieved May 1, 2013, from http://en. wikipedia. org /wiki/Philippines Philippines 7th Fastest Internet Growth, 17th Largest Smartphone Population Worldwide. (n. d. ). Retrieved May 12, 2013, from http://thebobbery. com/philippines-7th-fastest-internet-growth-17th-largest-smartphone-population-worldwide/ Smart Communications. (n. d. ). In Wikipedia. Retreived May 1, 2013, from http://en. wikipedia. org/wiki/Smart_ Communications Smartphone Reach Majority in all EU5 Countries. (2013). Retrieved May 1, 2013, from http://www. comscoredatamine. com/2013/03/smartphones-reach-majority-in-all-eu5-countries/ World Usage Patterns Demographics. (2013). Retrieved May 1, 2013, from http://www. newmediatrendwatch. com /world-overview/34-world-usage-patterns-and-demographics Ablott, M. (2012). Philippines mobile market becomes two-horse race. Retrieved May 10, 2013, from https:// wirelessintelligence. com/analysis/2012/05/philippines-mobile-market-becomes-two-horse-race/336/ Bryant, M. (2012). 5 startup trends for 2012. Retrieved May 12, 2013, from http://thenextweb. com/insider/2012 /01/03/5-startup-trends-for-2012/ Hofstede, G. , Hofstede, J. H. , and Minkov, M. (2010). Philippines. In Cultures and Organizations: Software of the Mind. Retrieved May 12, 2013, from http://geert-hofstede. com/philippines. html Kistner, A. (2012). Taxi 2. 0: Dispatch Firms Wage War over Smartphone App. In DER SPIEGEL (6/2012). Retrieved May 10, 2013, from http://www. spiegel. de/international/business/taxi-2-0-dispatch-firms-wage-war-over-smartphone-app- a-816685. html Meyer, D. (2012). MyTaxi rides into U. S. market with a trick up its sleeve. Retrieved May 11, 2013, from http://gigaom. om/2012/10/10/mytaxi-rides-into-u-s-market-with-a-trick-up-its-sleeve/ Murphy, D. (2010, November 29). Too many private cars on Metro Manila roads. Message posted to http://opinion. inquirer. net/inquireropinion/letterstotheeditor/view/20101129-305923/Too-many-private-cars-on-Metro-Manila- roads Robles, A. C. (2012). The agony of Metr o Manila commuters. Retrieved May 11, 2013, from http://www. gmanetwork. com/news/story/254898/news/specialreports/the-agony-of-metro-manila-commuters Steinmetz, T. (2012). World’s largest taxi booking app launches in US. Retrieved May 12, 2013, from http://www. eturbonews. com/31647/worlds-largest-taxi-booking-app-launches-us

US-Latin America Essay -- Politics, Dominican Republic

During the late nineteenth and early twentieth century, the United States was the most dominant power in the Western Hemisphere. European nations conceded to the United States their right of any intervention in the Western Hemisphere and allowed the United States to do whatever they wanted. The United States took this newly bestowed power and abused it. The United States intervened in many Latin American countries and imposed their policies on to these countries against their will. A perfect example of this aggression is what occurred in the Dominican Republic in 1904. The United States intervened in this sovereign nation and took control of their economy and custom houses. A memorandum from Francis B. Loomis, the United States Assistant Secretary of State, to the Secretary of States illustrates the United States’ goals, interests, attitudes and assumptions in the Dominican Republic and how the United States policy makers felt towards Latin America during this time period. The United States had a wide variety of goals and interests in the Dominican Republic and in Latin America. In the Dominican Republic, Americans were heavily invested in the Dominicans’ industries. Americans invested in an area of six million dollars just in the Sugar industry alone (Loomis 2). And â€Å"the total American investments in the Dominican Republic of an important and active sort are estimated to be worth about twenty million dollars (Loomis 2). Also, many American citizens owned and operated many vast and major plantations and railroads in the Dominican Republic. American citizens’ owned and operated 60 miles of important line of railway (Loomis 3). Also at Sosua, the American company, United Fruit Company owned some twenty thousand acres of land which... ...l power in Latin American. The United States didn’t engage in classic direct imperialism which is colonialism, but engage in indirect imperialism which focused on controlling and intervening in the economic and social institutions of Latin America. The United States only cared for their economic well-being. They didn’t care the suffering the people of Latin America were going through. The United States only cared that their economic interests were thriving in Latin America. The policies the United States government undertook clearly show this. The policies of Roosevelt’s corollary and Taft’s dollar diplomacy only mention the United States’ interests. There is nothing about the Latin American’s interests and well-being. Many people suffered because of the United States’ policy that only supported and protected the rich and powerful corporations.

Credit Appraisal Process

TABLE OF CONTENTS Chapters 1. INTRODUCTION * Reason for selecting the project * Scheme of the project * Research Methodology * Limitation of the study 2. CREDIT POLICY OF COMMERCIAL BANK * Commercial banks and its objectives * Recent policy developments regarding bank credit * Changing phase of bank credit * Trends of bank credit in India * Procedure for providing bank credit * Credit Appraisal 3. THE PROFILE OF THE ORGANIZATION OF PNB * Indian banking sector & its major challenges * Punjab National Bank at a glance * Mission and Vision * Organizational structure of PNB 4. CREDIT PHILOSOPHY & POLICY WITH REGARDS TO PNB Credit philosophy * Credit policy * Introduction to loans * Classification of loans * Building up of a proposal * Requirements as per constitution of borrower * Financial Appraisal 5. ANALYSIS AND INTERPRETATION OF DATA * Credit Appraisal techniques * Process of credit appraisal for providing cash credit * Appraisal techniques for retail loans 6. CONCLUSION * Conclusio n * BIBLIOGRAPHY Introduction The last year financial crises have become the main cause for recession which was started in 2006 from US and was spread across the world. The world economy has been majorly affected from the crisis.The securities in stock exchange have fallen down drastically which has become the root cause of bankruptcy of many financial institutions and individuals. The root cause of the economic and financial crisis is credit default of big companies and individuals which has badly impacted the world economy. So in the present scenario analysing one’s credit worthiness has become very important for any financial institution before providing any form of credit facility so that such situation doesn’t arise in near future again. Analysis of the credit worthiness of the borrowers is known as Credit Appraisal.In order to understand the credit appraisal system followed by the banks this project has been conducted. The project has analysed the credit appraisa l procedure with special reference to Punjab National Bank which includes knowing about the different credit facilities provided by the banks to its customers, how a loan proposal is being made, what are the formalities that is to be satisfied and most importantly knowing about the various credit appraisal techniques which are different for each type of credit facility. Before going further it is necessary to understand the need and basic framework of the project.Therefore this chapter provides an introduction to the topic, objective of the project, reasons for selecting the project and the basic structure and framework how the project proceeds. In order to understand the importance of the topic selected an introduction to the overview of the commercial bank , its functions, and present trends and growth in bank credit are required and it is covered in this chapter. Reasons for selecting the project Whenever an individual or a company uses a credit that means they are borrowing mone y that they promise to repay with in a pre-decided period.In order to assess the repaying capability i. e. to evaluate their credit worthiness banks use various techniques that differ with the different types of credit facilities provided by the bank. In the current scenario where it is seen that big companies and financial institutions have been bankrupted just because of credit default so Credit Appraisal has become an important aspect in the banking sector and is gaining prime importance. It is the incident of credit defaults that has given rise to the financial crisis of 2008-09.But in India the credit default is comparatively less that other countries such as US. One of the reasons leading to this may be good appraisal techniques used by banks and financial institutions in India. Eventually the importance of this project is mainly to understand the credit appraisal techniques used by the banks with special reference to Punjab National Bank. Scheme of the project It covers the o bjective and structure of the project which is discussed as follows:- Objective of the project The overall objective of this project is to under stand the current credit appraisal system used in banks.The Credit Appraisal system has been analysed as per the different credit facilities provided by the bank. The detailed explanation about the techniques and process has been discussed in detail in the further chapters. Structure or Plan of the project The project first of all makes a study about the commercial banks- its important functions. Then it highlights on the concept of Bank Credit & its recent trends. The project then proceeds towards the lending procedure of banks and here it highlights about credit appraisal being the first step in building up of a loan proposal.Then it discusses the bank credit policy with respect to Punjab National bank where the project was undertaken. The project then proceeds with the review of literature i. e. review of some past work regarding credit appraisal by various researchers. The project then moves towards research methodology where it covers the information regarding the type of data collected and the theoretical concepts used in the project are discussed in detail. Then the project proceeds with the next chapter consisting of the analysis part which covers the analysis of various techniques used by the banks for the purpose of credit appraisal.Then the project moves to its next chapter i. e. findings where some results found out are interpreted and then moving on to the last and the final chapter i. e. the suggestions and conclusions where some steps are suggested to be implemented to increase the work efficiency and to reduce to work pressure Commercial banks and its objectives A commercial bank is a type of financial intermediary that provides checking accounts, savings accounts, and money market accounts and that accepts time deposits.Some use the term â€Å"commercial bank† to refer to a bank or a division o f a bank primarily dealing with deposits and loans from corporations or large businesses. This is what people normally call a â€Å"bank†. The term â€Å"commercial† was used to distinguish it from an investment bank. Commercial banks are the oldest, biggest and fastest growing financial intermediaries in India. They are also the most important depositories of public savings and the most important disbursers of finance. Commercial banking in India is a unique banking system, the like of which exists nowhere in the world.The truth of this statement becomes clear as one studies the philosophy and approaches that have contributed to the evolution of banking policy, programmes and operations in India. The banking system in India works under constraints that go with social control and public ownership. The public ownership of banks has been achieved in three stages: 1995, july 1969 and April, 1980. Not only the public sector banks but also the private sector and foreign ban ks are required to meet the targets in respect of sectoral deployment of credit, regional distribution of branches, and regional credit deposit ratios.The operations of banks have been determined by lead bank scheme, Differential Rate of interest scheme, Credit authorization scheme, inventory norms and lending systems prescribed by the authorities, the formulation of credit plans, and service area approach. Commercial Banks in India have a special role in India. The privileged role of the banks is the result of their unique features. The liabilities of Bank are money and therefore they are important part of the payment mechanism of any country.For a financial system to mobilise and allocate savings of the country successfully and productively and to facilitate day-to-day transactions there must be a class of financial institutions that the public views are as safe and convenient outlets for its savings. The structure and working of the banking system are integral to a countryâ€℠¢s financial stability and economic growth. It has been rightly claimed that the diversification and development of Indian Economy are in no small measure due to the active role banks have played financing economic activities of different sectors.Major objectives of commercial banks Bank Credit The borrowing capacity provided to an individual by the banking system, in the form of credit or a loan is known as a bank credit. The total bank credit the individual has is the sum of the borrowing capacity each lender bank provides to the individual. The operating paradigms of the banking industry in general and credit dispensation in particular have gone through a major upheaval. * Lending rates have fallen sharply. * Traditional growth and earning such as corporate credit has been either slow or not profitable as before. Banks moving into retail finance, interest rate on the once attractive retail loans also started coming down. * Credit risks has went up and new types risks are surfaced Types of credit- Bank in India provide mainly short term credit for financing working capital needs although, as will be seen subsequently, their term loans have increased over the years. The various types of advances provide by them are: (a) Term Loans, (b) cash credit, (c) overdrafts, (d) demand Loans , (e) purchase and discounting of commercial bills, and, (f) instalment or hire purchase credit. Volume of Credit-Commercial banks are a major source of finance to industry and commerce. Outstanding bank credit has gone on increasing from Rs 727 crore in 1951 to Rs 19,124 crore in 1978, to Rs 69,713 crore in 1986, Rs 1,01,453 crore in 1989-90 , Rs 2,82,702 crore in 1997 and to Rs 6,09,053 crore in 2002. Banks have introduced many innovative schemes for the disbursement of credit. Among such schemes are village adoption, agriculture development branches and equity fund for small units. Recently, most of the banks have introduced attractive education loan schemes for pursuing studies at home or abroad.They have introduced attractive educational loan schemes for pursuing studies at home or abroad. They have moved in the direction of bridging certain defects or gaps in their policies, such as giving too much credit to large scale industrial units and commerce and giving too little credit to agriculture, small industries and so on. The Public Sector Banks are still the leading lenders  though growth has declined compared to previous quarter. The credit growth rate has dipped sharply in foreign and private banks compared to previous quarter. In all, the credit growth has slipped in this quarter. Credit (YOY Growth)March 28 2008  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   March 27 2009| Public Sector Banks| 22. 5| 20. 4| The rates have gone down compared to previous quarter when it was seen that there was no changes in loan rates in private and foreign banks. But then compared to rate cuts done by RBI, they still need to go lower. Table 16: Reduction in Deposit and Lending Rates | (October 2008 – April 2009*)| (Basis points)| Bank Group| Deposit Rates| Lending Rates (BPLR)| Public Sector Banks| 125-250| 125-225| Private Sector Banks| 75-200| 100-125| Five Major Foreign Banks| 100-200| 0-100| | | |BPLR| Oct – 08| Mar – 09| Apr – 09| Change (from Oct to Apr)| Public Sector Banks| 13. 75-14. 75| 11. 50-14. 00| 11. 50-13. 50| 125-225| Private Sector Banks| 13. 75-17. 75| 12. 75-16. 75| 12. 50-16. 75| 100-125| Five Major Foreign Banks  Ã‚  Ã‚  | 14. 25-16. 75| 14. 25-15. 75| 14. 25-15. 75| 0-100| Sector-wise credit points credit has increased to agriculture, industry and real estate whereas has declined to NBFCs and Housing. A bank group wise sectoral allocation is also given which suggests private banks have increases exposure to agriculture and real estate but has declined to industry.Public sector banks have increased allocation to industry and rea l estate. There is a more detailed analysis in the macroeconomic report  released before the monetary policy. Sector| As on February 15, 2008|   | As on February 27, 2009|   |   | % share| Variations| % share | Variations| | in total| (per cent)| in total| (per cent)| Agriculture| 9. 2| 16. 4| 13| 21. 5| Industry| 45. 2| 25. 9| 52. 5| 25. 8| Real Estate| 3. 1| 26. 7| 8. 5| 61. 4| Housing| 7. 3| 12| 4. 7| 7. 5| NBFCs| 5. 7| 48. 6| 6. 6| 41. 7| Overall Credit| 100| 22| 100| 19. 5| To sum up, the credit conditions seems to have worsened after January 2009.The rates have declined but lending has not really picked up. However, the question still remains – whether credit decline is because banks are not lending (supply) or because  people/corporates are   not borrowing (lack of demand). It is usually seen that all financial variables as lead indicators say if credit growth (along with other fin indicators) is picking, actual growth will also rise. However, it is actuall y seen the relation is far from clear. In fact, the financial indicators  hardly help predict any change in business cycle. Most rise in good times and fall in bad times.Most financial indicators failed to predict this global financial crisis and kept rising making everyone all the more complacent. Recent policy developments Regarding Bank Credit Bank lending was done for a long time by assessing the working capital needs based on the concept of MPBF (maximum permissible bank finance). This practice has been withdrawn with the effect from April 15th 1997 in the sense that the date, banks have been left free to choose their own method ( from the method such as turnover , cash budget, present MPBF , or any other theory) of assessing working Capital requirement of the borrowers.The cash credit system has been the bane, yet it has exhibited a remarkable strength of survival all these years. In spite of many efforts which were direct in nature, only a slow progress has been made to red uce its importance and increase bill financing. Therefore a concrete and direct policy step was taken on April 21, 1995 which made it mandatory for banks, consortia, syndicates to restrict cash credit components to the prescribed limit , the balance being given in the form of a short term loan, which would be a demand loan for a maximum period of one year, or in case of seasonal industries , for six months.The interest rates on the cash credit and loan components are to be fixed in accordance with the prime lending rates fixed by the banks. This â€Å"loan system† was first made applicable to the borrowers with an MPBF of Rs 20 crore and above; and in their case , the ratio of cash credit (loan) to MPBF was progressively reduced(increased) from 75 (25) per cent in April 1995 , to 60 (40) percent in September 1995, 40 (60) per cent in April 1996 , and 20 (80) percent in April 1997.With the withdrawal of instructions about the MPBF in April 1997 , the prescribed cash credit and loan components came to be related to the working capital limit arrived in banks as per the method of their choice. With effect from September 3, 1997, the RBI has permitted banks to raise their existing exposure limit to a business group from 50% to 60%; the additional 10% limit being exclusively meant for investment in infrastructure projects. The term lending by banks also has subject to the limits fixed by RBI. In 1993, this limit was raised from Rs 10 crore to Rs 50 crore in case of a oan for a single project by a single bank, and from Rs 150 crore to Rs 200 crore for a single project by all the banks. The latter limit was subsequently raised to Rs 500 crore in the case of general projects and Rs 1000 crore for power projects. From September3, 1997 these caps on term lending by banks were removed subject to their compliance with the prudential exposure norms. The banks can invest in and underwrite shares and debentures of corporate bodies. At present, they can invest five perc ent of their incremental deposits in equities of companies including other banks.Their investment in shares/ Bonds of DFHI, Securities trading Corporation of India (STCI), all Indian financial institutions and bonds (debentures) and preference shares of the companies are excluded from this ceiling of five per cent with affect from April 1997 . From the same date banks could extend loans within this ceiling to the corporate against shares held by them. They could also offer overdraft facilities to stock brokers registered with help of SEBI against shares and debentures held by them for nine months without change of ownership. CHANGING PHASE OF BANK CREDIT-A study group headed by Shri Prakash Tandon, the then Chairman of Punjab National Bank, was constituted by the RBI in July 1974 with eminent personalities drawn from leading banks, financial institutions and a wide cross-section of the industry with a view to study the entire gamut of Bank's finance for working capital and suggest w ays for optimum utilization of Bank credit. This was the first elaborate attempt by the central bank to organize the Bank credit. Most banks in India even today continue to look at the needs of the corporate in the light of methodology recommended by the Group.The report of this group is widely known as Tandon Committee report. The weaknesses in the Cash Credit system have persisted with the non-implementation of one of the crucial recommendations of the Committee. In the background of credit expansion seen in 1977-79 and its ill effects on the economy, RBI appointed a working group to study and suggest- i) Modifications in the Cash Credit system to make it amenable to better management of funds by the Bankers and ii) Alternate type of credit acilities to ensure better credit discipline and co relation between credit and production. The Group was headed by Sh. K. B. Chore of RBI and was named Chore Committee. Another group headed by Sh. P. R. Nayak (Nayak Committee) was entrusted th e job of looking into the difficulties faced by Small Scale Industries due to the sophisticated nature of Tandon ; Chore Committee recommendations. His report is applicable to units with credit requirements of less than Rs. 50 lacs.The recommendations made by Tandon Committee and reinforced by Chore Committee were implemented in all Banks and Bank Credit became much more organized. However, the recommendations were perceived as too strict by the industry and there has been a continuous clamor from the Industry for movement from mandatory control to a voluntary market related restraint. With recent liberalization of economy and reforms in the financial sector, RBI has given the freedom to the Banks to work out their own norms for inventory and the earlier norms are now to be taken as guidelines and not a mandate.In fact, beginning with the slack season credit policy of 1997-98, RBI has also given full freedom to all the Banks to devise their own method of assessing the short term cre dit requirements of their clients and grant lines of credit accordingly. Most banks, however, continue to be guided by the principles enunciated in Tandon Committee report. Trends of Bank Credit in India The face of Indian banking has changed radically in the last decade. A perusal of the Basic Statistical Returns submitted by banks to the Reserve Bank of India shows that between 1996 and 2005, personal loans have been the fastest growing asset, increasing from 9. per cent of the total bank credit in 1996 to 22. 2 per cent in 2005. Of course, this is partly due to the huge rise in housing loans, which rose from 2. 8 per cent of the bank credit to 11 per cent over the period, but ‘other personal loans’ — comprising loans against fixed deposits, gold loans and unsecured personal loans — also rose from 6. 1 per cent to 10. 7 per cent. Other categories whose share increased were loans to professionals and loans to finance companies. In contrast, there has been a sharp decline in the share of lendings to industry. Credit to small scale industries fell from 10. per cent of the total in 1996 to 4. 1 per cent in 2005. Reasons for declining trend of bank credit * A major share of the economic growth has been led by the expansion of the service sector * Capital intensity and investment intensity required for growth in the current economic context may not be as high as it used to be in the past. * In manufacturing sector more efficient utilization of existing capacities contributed to the sectoral growth rather rather than any large addition of fresh capacities. The consequential increase in the demand for credit was also subdued. Greater and cheaper avenues for credit resulted in a bigger share of disintermediation being resorted to by large borrowers. The other trend has been the substantial drop in the share of rural credit, while the share of metropolitan centres has increased. While bankers say that up gradation of rural centres into semi- urban could be one reason (the share of semi-urban centres has gone up), it is also true that the reforms have been urban-centric and have tended to benefit the metros more. The number of rural bank offices fell from 32,981 in March 1996 to 31,967 by March 2005.The states have been the main beneficiaries of bank credit are the northern region as it has increased its share from 18. 7 per cent of the total credit in 1996 to 22. 2 per cent in 2005. As it was seen that Delhi’s share went up from 9. 5 per cent to 12. 1 per cent over the period. This is not due to food credit, the account of which is maintained in Delhi. Clearly, the national capital has gained a lot from liberalisation. Trends for the year 2008-09 The aggregate deposits of scheduled commercial banks have expanded during 2008-09 at a somewhat slower rate (19. %) than in 2007-08 (22. 4%). Within aggregate deposits demand deposits have shown an absolute fall (-Rs 4,179 crore) in contrast to the sizeable increase (Rs 94,579 crore or by 22%) in 2007-08,. On the other hand, time deposits have shown an accelerated increase of 22. 6% (or Rs 647,806 crore) as against 21. 8% (Rs 512,844 crore) in the previous year. In the investment portfolio of banks, the expansion during 2008- 09 at Rs 194,031crore has been much lower than the expansion of Rs 340,250 crore as increase in net bank credit to government under onetary data for the same period. This has happened because the latter has a sizeable amount of RBI credit to government following the increased open market operations. Finally, there has occurred considerable slowdown in bank credit expansion. Because of relatively higher procurement of foodgrains, food credit has expanded by Rs 1,812 crore during 2008-09 as against an absolute fall of Rs 2,121 crore in 2007-08. Non-food credit growth at Rs 406,287 (17. 5%) has been slower than in the previous year at Rs 432,846 (23. 0%).Procedure for providing Bank Credit- Banks offers different types of credit facilities to the eligible borrowers. For this, there are several procedures, controls and guidelines laid out. Credit Appraisal, Sanctions, Monitoring and Asset Recovery Management comprise the entire gamut of activities in the lending process of a bank which are clearly shown as below: Source- Self constructed From the above chart we can see that Credit Appraisal is the core and the basic function of a bank before providing loan to any person/company, etc.It is the most important aspect of the lending procedure and therefore it is discussed in detail as below. Credit Appraisal Meaning – The process by which a lender appraises the creditworthiness of the prospective borrower is known as Credit Appraisal. This normally involves appraising the borrower’s payment history and establishing the quality and sustainability of his income. The lender satisfies himself of the good intentions of the borrower, usually through an interview. * The credit requirement must be assessed by all Indian Financial Institutions or specialised institution set up for this purpose. Wherever financing of infrastructure project is taken up under a consortium / syndication arrangement – bank’s exposure shall not exceed 25% * Bank may also take up financing infrastructure project independently / exclusively in respect of borrowers /promoters of repute with excellent past record in project implementation. * In such cases due diligence on the inability of the projects are well defined and assessed. State government guarantee may not be taken as a substitute for satisfactory credit appraisal.The important thing to remember is not to be overwhelmed by marketing or profit centre reasons to book a loan but to take a balanced view when booking a loan, taking into account the risk reward aspects. Generally everyone becomes optimistic during the upswing of the business cycle, but tend to forget to see how the borrower will be during the downturn, which is a short-sighted approach. Furthermore greater emphasis is given on financials, which are usually outdated; this is further exacerbated by the fact that a descriptive approach is usually taken, rather than an analytical approach, to the credit.Thus a forward looking approach should also be adopted, since the loan will be repaid primarily from future cash flows, not historic performance; however both can be used as good repayment indicators. Indian Banking Sector ; Its Major Challenges It is well recognised by the world that India is one of the fastest growing economies in the world. Evidence from across the world suggests that a sound and evolved banking system is required for sustained economic development. The last decade has seen many positive developments in the Indian banking sector.The policy makers, which comprise the Reserve Bank of India (RBI), Ministry of Finance and related government and financial sector regulatory entities, have made several notable efforts to improve regulation in the sector. The sector now compares favourably with banking sectors in the region on metrics like growth, profitability and non-performing assets (NPAs). A few banks have established an outstanding track record of innovation, growth and value creation. This is reflected in their market valuation. However, improved regulations, innovation, growth and value creation in the sector remain limited to a small part of it.The cost of banking intermediation in India is higher and bank penetration is far lower than in other markets. India’s banking industry must strengthen itself significantly if it has to support the modern and vibrant economy which India aspires to be. While the onus for this change lies mainly with bank managements, an enabling policy and regulatory framework will also be critical to their success. The failure to respond to changing market realities has stunted the development of the financial sector in many developing countries.A weak banking structure has been unable to fuel continued growth, which has harmed the long-term health of their economies. In this â€Å"white paper†, we emphasise the need to act both decisively and quickly to build an enabling, rather than a limiting, banking sector in India. Indian banks have compared favourably on growth, asset quality and profitability with other regional banks over the last few years. The banking index has grown at a compounded annual rate of over 51 per cent since April 2001 as compared to a 27 per cent growth in the market index for the same period.Policy makers have made some notable changes in policy and regulation to help strengthen the sector. These changes include strengthening prudential norms, enhancing the payments system and integrating regulations between commercial and co-operative banks. However, the cost of intermediation remains high and bank penetration is limited to only a few customer segments and geographies. While bank lending has been a significant driver of GDP growth and employment, periodic instances of the â€Å"failure† of some weak banks have often threatened the stability of the system.Structural weaknesses such as a fragmented industry structure, restrictions on capital availability and deployment, lack of institutional support infrastructure, restrictive labour laws, weak corporate governance and ineffective regulations beyond Scheduled Commercial Banks (SCBs), unless addressed, could seriously weaken the health of the sector. Further, the inability of bank managements (with some notable exceptions) to improve capital allocation, increase the productivity of their service platforms and improve the performance ethic in their organisations could seriously affect future performance.India has a better banking system in place Vis a Vis other developing countries, but there are several issues that need to be ironed out. Major challenges of Indian banking sector are mentioned below. Interest rate risk Interest rate risk can be defined as exposure of bank's net interest income to adverse movements in interest rates. A bank's balance sheet consists mainly of rupee assets and liabilities. Any movement in domestic interest rate is the main source of interest rate risk. Over the last few years the treasury departments of banks have been responsible for a substantial part f profits made by banks. Between July 1997 and Oct 2003, as interest rates fell, the yield on 10-year government bonds (a barometer for domestic interest rates) fell, from 13 per cent to 4. 9 per cent. With yields falling the banks made huge profits on their bond portfolios. Now as yields go up (with the rise in inflation, bond yields go up and bond prices fall as the debt market starts factoring a possible interest rate hike), the banks will have to set aside funds to mark to market their investment. This will make it difficult to show huge profits from treasury operations.This concern becomes much stronger because a substantial percentage of bank depo sits remain invested in government bonds. Banking in the recent years had been reduced to a trading operation in government securities. Recent months have shown a rise in the bond yields has led to the profit from treasury operations falling. The latest quarterly reports of banks clearly show several banks making losses on their treasury operations. If the rise in yields continues the banks might end up posting huge losses on their trading books.Given these facts, banks will have to look at alternative sources of investment. Interest rates and non-performing assets The best indicator of the health of the banking industry in a country is its level of NPAs. Given this fact, Indian banks seem to be better placed than they were in the past. A few banks have even managed to reduce their net NPAs to less than one percent (before the merger of Global Trust Bank into Oriental Bank of Commerce OBC was a zero NPA bank). But as the bond yields start to rise the chances are the net NPAs will al so start to go up.This will happen because the banks have been making huge provisions against the money they made on their bond portfolios in a scenario where bond yields were falling. Reduced NPAs generally gives the impression that banks have strengthened their credit appraisal processes over the years. This does not seem to be the case. With increasing bond yields, treasury income will come down and if the banks wish to make large provisions, the money will have to come from their interest income, and this in turn, shall bring down the profitability of banks. Competition in retail bankingThe entry of new generation private sector banks has changed the entire scenario. Earlier the household savings went into banks and the banks then lent out money to corporate. Now they need to sell banking. The retail segment, which was earlier ignored, is now the most important of the lot, with the banks jumping over one another to give out loans. The consumer has never been so lucky with so man y banks offering so many products to choose from. With supply far exceeding demand it has been a race to the bottom, with the banks undercutting one another.A lot of foreign banks have already burnt their fingers in the retail game and have now decided to get out of a few retail segments completely. The nimble footed new generation private sector banks have taken a lead on this front and the public sector banks are trying to play catch up. The PSBs have been losing business to the private sector banks in this segment. PSBs need to figure out the means to generate profitable business from this segment in the days to come. The urge to merge In the recent past there has been a lot of talk about Indian Banks lacking in scale and size.The State Bank of India is the only bank from India to make it to the list of Top 100 banks, globally. Most of the PSBs are either looking to pick up a smaller bank or waiting to be picked up by a larger bank. The central government also seems to be game ab out the issue and is seen to be encouraging PSBs to merge or acquire other banks. Global evidence seems to suggest that even though there is great enthusiasm when companies merge or get acquired, majority of the mergers/acquisitions do not really work. So in the zeal to merge with or acquire another bank the PSBs should not let their common sense take a back seat.Before a merger is carried out cultural issues should be looked into. A bank based primarily out of North India might want to acquire a bank based primarily out of South India to increase its geographical presence but their cultures might be very different. So the integration process might become very difficult. Technological compatibility is another issue that needs to be looked into in details before any merger or acquisition is carried out. Impact of BASEL-II norms Banking is a commodity business. The margins on the products that banks offer to its customers are extremely thin vis a vis other businesses.As a result, for banks to earn an adequate return of equity and compete for capital along with other industries, they need to be highly leveraged. The primary function of the bank's capital is to absorb any losses a bank suffers (which can be written off against bank's capital). Norms set in the Swiss town of Basel determine the ground rules for the way banks around the world account for loans they give out. These rules were formulated by the Bank for International Settlements in 1988. Essentially, these rules tell the banks how much capital the banks should have to cover up for the risk that their loans might go bad.The rules set in 1988 led the banks to differentiate among the customers it lent out money to. Different weightage was given to various forms of assets, with zero percentage weightings being given to cash, deposits with the central bank/govt. etc, and 100 per cent weighting to claims on private sector, fixed assets, real estate etc. The summation of these assets gave us the risk-weighte d assets. Against these risk weighted assets the banks had to maintain a (Tier I + Tier II) capital of 9 per cent i. e. every Rs100 of risk assets had to be backed by Rs 9 of Tier I + Tier II capital.To put it simply the banks had to maintain a capital adequacy ratio of 9 percent. The problem with these rules is that they do not distinguish within a category i. e. all lending to private sector is assigned a 100 per cent risk weighting, be it a company with the best credit rating or company which is in the doldrums and has a very low credit rating. This is not an efficient use of capital. The company with the best credit rating is more likely to repay the loan vis a vis the company with a low credit rating.So the bank should be setting aside a far lesser amount of capital against the risk of a company with the best credit rating defaulting vis a vis the company with a low credit rating. With the BASEL-II norms the bank can decide on the amount of capital to set aside depending on the credit rating of the company. Credit risk is not the only type of risk that banks face. These days the operational risks that banks face are huge. The various risks that come under operational risk are competition risk, technology risk, casualty risk, crime risk etc. The original BASEL rules did not take into account the operational risks.As per the BASEL-II norms, banks will have to set aside 15 per cent of net income to protect themselves against operational risks. Over the last few years, the falling interest rates, gave banks very little incentive to lend to projects, as the return did not compensate them for the risk involved. This led to the banks getting into the retail segment big time. It also led to a lot of banks playing it safe and putting in most of the deposits they collected into government bonds. Now with the bond party over and the bond yields starting to go up, the banks will have to concentrate on their core function of lending.The banking sector in India needs t o tackle these challenges successfully to keep growing and strengthen the Indian financial system. Furthermore, the interference of the central government with the functioning of PSBs should stop. A fresh autonomy package for public sector banks is in offing. The package seeks to provide a high degree of freedom to PSBs on operational matters. This seems to be the right way to go for PSBs. The growth of the banking sector will be one of the most important inputs that shall go into making sure that India progresses and becomes a global economic super power. Products and Services Corporate banking * Personal banking * Industrial finance * Agriculture finance * Financing of trade * International banking * Home loan * Auto loan * ATM/Debit card * Deposit interest rate * Credit interest rate * Other services: lockers facility, internet banking, EFT ; Clearing services etc Review of Literature Literature review provides available research with respect to the selected topic of the project or the research findings by an author which has been done with respect to the research topic. This chapter provides the overall view of the available literature with respect to the topic of the project.The review of the related research works are described as under:- 1. A research work on the topic â€Å" On the appraisal on consumer credit banking products with the asset quality frame: A multiple criteria application. † done by Panagiotis Xidonas, Alexandros Flamos, Sortirios Koussouris, Dimitrious Askouins ; Ioannis Psarras from National Technical University of Athens in 2007 says that Asset quality refers to the likelihood that the bank's earning assets will continue to perform and requires both a qualitative and quantitative assessment.Decision problems like the â€Å"internal appraisal of banking products†, are problems with strong multiple-criteria character and it seems that the methodological framework of Multiple Criteria Decision Making could provide a reliab le solution. In this paper, the Asset Quality banking indicators are the, so called, â€Å"criteria†, the value of these indicators are the, so called, â€Å"scores† in each criterion and the P. R. O. METH. E. E. [Preference Ranking Organization Method of Enrichment Evaluations, Brans & Vincke (1985)] Multiple Criteria method is applied, towards modelling banking products appraisal problems.A Multiple Criteria process, strictly mathematically defined, integrates the behaviour of each indicator-criterion and utilizes each score in order to rank the so called â€Å"alternatives†, i. e. categories of banking products. 2. The research Paper on â€Å"Evaluation of decision support systems for credit management decisions† by S. Kanungo, S. Sharma, P. K. Jain from Department of studies, IIT Delhi have conducted a study to evaluate the efficiency of decision support system (DSS) for credit management. This study formed a larger initiative to access the effectiven ess of the I.T based credit management process at SBI. Such a study was necessitated since credit appraisal has become an integral sub-function of the Indian banks in view of growing incidence of non-performing assets. The DSS they have assessed was a credit appraisal system developed by Quuattro pro at SBI. This system helps in analysis of balance sheets, Calculation of financial ratios, cash flow analysis, future projections, sensitivity analysis and risk evaluation as per SBI norms. They have also used a strong Quassi experimental design called Solomon’s four group design for the assessment.In the experiment the managers of SBI who attended the training programme were the subjects the experiment consisted of the measurements that were taken as pre and post tests. An experimental intervention was applied between the pre-tests and the pro-tests. The intervention or stimulus consisted of DSS training and use. There were four groups in the experiment. The stimulus remained con stant as the they took care to ensure that the course content as well as the instructors remained the same during the course of the experiment. Two were experimental groups and two were control groups.All four groups underwent training in credit management between the pre and the post tests. Results from research shows that while the DSS is effective, improvement needs to be done in the methodology to assess such improvements. Moreover such assessment frameworks while being adequate from a DSS-centric viewpoint do not respond to the assessment of DSS in an organizational setting . In the concluding section they have discussed how this evaluative framework can be strengthened to initiate an activity that will allow the long term and possibly the only meaningful evaluation framework for such a system. . The research paper on the topic â€Å"Towards an appraisal of the FMHA farm credit program: A case study of the efficiency of borrower by S. Mehdian, Wm. McD. Herr, Phil Eberle, and R ichard Grabowski† have studied that the a production frontier methodology is used to measure the overall efficiency of a sample of farmers home administration(FMHA) compared to non participants. The study did not find evidence that the efficiency FMHA farms improved between a time period Results indicated that overall efficiency of FMHA borrowers is associated with selected financial characteristics of the farms.A review of the literature shows that agricultural finance specialists have not been successful in evaluating whether FMHA pro- grams improve the efficiency and income of probability of success. Liberal loan policies Eligible borrowers. Inadequate evaluation of the FMHA program occurs partly because of because the difficulty of adequately deter-mining the impacts of changes in the econ- borrowers in a more normal period of the loan.This study addressed these difficulties by utilizing a nonparametric production frontier technique to measure overall efficiency and a matc hed pair statistical procedure to measure how efficiency of farms receiving FMHA credit changed relative to a Non-FMHA farmers. 4. The book named â€Å"Financial Analysis for Bank Lending in Liberalised Economy† by Sampat. P. Singh and Dr. S. Singh have discussed the subject financial analysis for bank lending has assumed considerable importance, particularly since early 1990's when, like most of the countries, India opted for the policy of liberalisation and globalisation after 1991.The present volume is meant to be a standard reference as well as text book on the varied facets of financial analysis with reference to credit management by Banks and Financial Institutions. The book consists of three parts. Part I discusses the concepts and tools of Financial Analysis; Part II explains various concepts of working capital in its historical context; while Part III demonstrates the application of these tools in the changing context of liberalised economy by focusing on new concept s like ‘Credit Worthiness', Risk-Analysis, Credit Rating, Products-Differentiation, Pricing-Differentiation, Asset-Liability Management, etc.The book contains- Bank Lending and Industrial Finance in India ,Basic Economics for Bankers and Business Managers ,Introduction to Fundamentals Accounting Principles ,Profit and Loss Account (Operating Statement) ,Analysis of Profit and Loss Account (Operating Statement) ,Structure and Analysis of Balance Sheet ,Ratios as Tools of Financial Statements Analysis ,Accounting Flows : Income, Cash and Funds ,Break-even Analysis and Margin of Safety ,Appraisal of Capital Projects ,New Conceptual Framework for Analysis, Liberalised Era and New Focus of Bank Lending ,Managing Working Capital by Strategic Choice , Financing Working Capital : Conceptual and Historical Exposition,Creditworthiness and Credit Rating : At Centre stage Nucleus of Credit Appraisal , Working Capital Management-I : MPBF System of Appraisal and Bifurcation of Fund-Based Li mit in Two Components Working Capital Management-II : Alternative Methods of Appraisal ,Working Capital Management-III : Follow-up and Supervision , Appraisal of a New Project Involving Term Loan , Management of Problem Accounts , Management of Non-Performing Assets (NPAs), Rehabilitation of Sick Industrial Units, Working Capital Management : Concepts and Techniques , 1st Committee on Financial Sector Reform and the 2nd Committee on Banking System Reform (Known as Narasimham Committee Report, 1998). 5. The research paper on the topic â€Å"Competitive analysis in banking: Appraisal of the methodologies† by Nicola Cetorelli has discussed about the U. S. banking industry has experienced significant structural changes as the result of an intense process of consolidation. From 1975 to 1997, the number of commercial banks decreased by about 35 percent, from 14,318 to 9,215.Since the early 1980s, there have been an average of more than 400 mergers per year (see Avery et al. , 1997, and Simmons and Stavins, 1998). The relaxation of intrastate branching restrictions, effective to differing degrees in all states by 1992, and the passage in 1994 of the Riegle. Neal Interstate Banking and Branching Efficiency Act, which allows bank holding companies to acquire banks in any state and, since June 1, 1997, to open interstate branches, is certainly accelerating the process of consolidation. These significant changes raise important policy concerns. On the one hand, one could argue that banks are merging to fully exploit potential economies of scale and/or scope.The possible improvements in efficiency may translate into welfare gains for the economy, to the extent that customers pay lower prices for banks. services or are able to obtain higher quality services or services that could not have been offered before. 1 On the other hand, from the point of view of public policy it is equally important to focus on the effect of this restructuring process on the competitive co nditions of the banking industry. Do banks gain market power from merging? If so, they will be able to charge higher than competitive prices for their products, thus inflicting welfare costs that could more than offset any presumed benefit associated with mergers.In this article, analysis of competition in the banking industry is done highlighting a very fundamental issue: How market power is measured and how do regulators rely on accurate and effective procedures to evaluate the competitive effects of a merger. Credit Philosophy ; Policy with regards to Punjab National Bank An ideal advance is the one given to a reliable customer for an approval purpose with adequate experience, safe in knowledge that the money will be used to advantage and repayment will be made within a reasonable period from trade receipts or known maturities due on or about given dates. Credit philosophy – â€Å"To achieve credit expansion required for sustaining the profitability of the bank and emphas is on quality assets, profitable relationships and prudent growth. † CREDIT POLICY Bank follows following broad policy imperatives:- Reduction in dependence upon short term corporate loans, especially unsecured exposures. * Aiming to achieve more sanctions at levels closer to the customer. * Changing the mix of the portfolio in favour of better diffused and higher yielding credit. * Building competencies in credit management through training ; promotion of self directed learning. Objectives of credit policy 1. A balanced growth of credit portfolio, which does not compromise safety. 2. Adoption of a forward looking and market responsive approach for moving into profitable new areas on lending which emerge, within the pre determined exposure ceilings. 3. Sound risk management practices to identify measure, monitor and control risks. 4.Maximize interest yields from credit portfolio through a judicious management of varying spreads of loan assets based upon their size, credit rati ng and tenure. 5. Leverage on strong relationships with existing long-standing clients to source a bulk of new business by addressing their requirements comprehensively. 6. Ensure due compliance of various regulatory norms including CAR, income recognition and asset classification 7. Accomplish balanced development of credit to various sectors and geographical regions. 8. Achieve growth of credit to priority sectors / subsectors and continue to surpass the targets stipulated by reserve bank of India. 9.Using of pricing as a tool of competitive advantage ensuring however that earnings are protected. 10. Develop and maintain enhanced competencies in credit management at all levels through a combination of training initiatives, promotion of self directed learning and dissemination of best practices. Objectives in Credit To maintain healthy balance between- * Credit volumes * Earnings * Asset quality within the framework of regulatory prescriptions, corporate goals and bank’s soc ial responsibilities. Introduction to loans Loans are advances for fixed amounts repayable on demand or in instalment. They are normally made in lump sums and interest is paid on the entire amount.The borrower cannot draw funds beyond the amount sanctioned. A key function of the Bank is deploying funds for income-yielding assets. A major part of Bank’s assets are the loans and advances portfolio and investments in approved securities. Loans ; Advances refer to long-term and short-term credit facilities to various types of borrowers and non-fund facilities like Bank Guarantees, Letters of Credit, Letters of Solvency etc. Bill facilities represent structured commitments which are negotiable claims having a market by way of negotiable instruments. Thus, Banks extend credit facilities by way of fund-based long-term and short-term loans and advances as also by way of non-fund facilities.Loans/Advances Classification of Loans Loans/Advances Pre-shipment Finance Post shipment Financ e Letter of Credit Bank Guarantee Term Loan Export Finance Bill Discounting Cash Credit Retail Loan Non-Fund Based Fund Based Fund Based Bank provides credit in various forms. These are broadly classified into two categories- Fund based and Non –Fund Based. Fund based refers to the type of credit where cash is directly involved i. e. where bank provides money to the seeker in anticipation of getting it back. Where as in a Non-fund Based, Bank doesn’t pay cash directly but gives assurance or takes guarantee on behalf of its customer to pay if they fail to do so.In case on Fund Based there are different categories of loans which are discussed as follows I. RETAIL LOANS- Retail banking in India is not a new phenomenon. It has always been prevalent in India in various forms. For the last few years it has become synonymous with mainstream banking for many banks. The typical products offered in the Indian retail banking segment are:- * Housing loans * Consumer loans for purc hase of durables * Auto loans * Educational loans * Credit Cost. * Personal loans Retail loan is the practice of loaning money to individuals rather than institutions. Retail lending is done by banks, credit unions, and savings and loan associations.These institutions make loans for automobile purchases, home purchases, medical care, home repair, vacations, and other consumer uses. Retail lending has taken a prominent role in the lending activities of banks, as the availability of credit and the number of products offered for retail lending have grown. The amounts loaned through retail lending are usually smaller than those loaned to businesses. Retail lending may take the form of instalment loans, which must be paid off little by little over the course of years, or non-instalment loans, which are paid off in one lump sum. These loans are marketed under attractive brand names to differentiate the products offered by different banks.As the Report on Trend and Progress of India, 2007- 08 has shown that the loan values of these retail lending typically range between Rs. 20, 000 to Rs. 100 lakh. The loans are generally for duration of five to seven years with housing loans granted for a longer duration of 15 years. Credit card is another rapidly growing sub-segment of this product group. In recent past retail lending has turned out to be a key profit driver for banks with retail portfolio. The overall impairment of the retail loan portfolio worked out much less then the Gross NPA ratio for the entire loan portfolio. Within the retail segment, the housing loans had the least gross asset impairment.In fact, retailing make ample business sense in the banking sector. Basic reasons that have contributed to the retail growth in India are- * First, economic prosperity and the consequent increase in purchasing power has given a fillip to a consumer boom. Note that during the 10 years after 1992, India's economy grew at an average rate of 6. 8 percent and continues to grow at the almost the same rate – not many countries in the world match this performance. * Second, changing consumer demographics indicate vast potential for growth in consumption both qualitatively and quantitatively. India is one of the countries having highest proportion (70%) of the population below 35 years of age (young population).The BRIC report of the Goldman-Sachs, which predicted a bright future for Brazil, Russia, India and China, mentioned Indian demographic advantage as an important positive factor for India. * Third, technological factors played a major role. Convenience banking in the form of debit cards, internet and phone-banking, anywhere and anytime banking has attracted many new customers into the banking field. Technological innovations relating to increasing use of credit / debit cards, ATMs, direct debits and phone banking has contributed to the growth of retail banking in India. * Fourth, the Treasury income of the banks, which had strengthened the botto m lines of banks for the past few years, has been on the decline during the last two years. In such a scenario, retail business provides a good vehicle of profit maximisation.Considering the fact that retail’s share in impaired assets is far lower than the overall bank loans and advances, retail loans have put comparatively less provisioning burden on banks apart from diversifying their income streams. * Fifth, decline in interest rates have also contributed to the growth of retail credit by generating the demand for such credit. According to K V Kamath, the changing demographic profile and a downward trend of the interest rates will propel retail credit in India. â€Å"There is a huge retail credit opportunity that is surfacing. Banks have low penetration in this segment currently. But it is the one area that is providing the momentum in the banking business now,† India has among the lowest penetration of retail loans in Asia.Though the sector has been growing at arou nd 15 per cent, there is still a huge opportunity to tap into. Middle and -high-income homes in India has increased to 2. 57 crore (25. 7 million). Interest rates on retail loans have been dropping rapidly too. For instance residential mortgages slumped by 7 per cent over the last four years. â€Å"The entry of a number of banks in India in the last few years has helped provide increased coverage and a number of new products in the market,† says Kamath. II. WORKING CAPITAL / CASH CREDIT Cash credit is a short-term cash loan to a company. A bank provides this type of funding, but only after the required security is given to secure the loan.Once a security for repayment has been given, the business that receives the loan can continuously draw from the bank up to a certain specified amount. The bank provides certain amount to the company for its day to day working keeping certain margin in hand. III. TERM LOANS A bank loan to a company, with a fixed maturity and often featuring amortization of principal. If this loan is in the form of a line of credit, the funds are drawn down shortly after the agreement is signed. Otherwise, the borrower usually uses the funds from the loan soon after they become available. Bank term loans are very a common kind of lending. Term loans are the basic vanilla commercial loan. They typically carry fixed interest rates, and monthly or quarterly repayment schedules and include a set maturity date.Bankers tend to classify term loans into two categories: * Intermediate-term loans: Usually running less than three years, these loans are generally repaid in monthly instalments (sometimes with balloon payments) from a business's cash flow. According to the American Bankers Association, repayment is often tied directly to the useful life of the asset being financed. * Long-term loans: These loans are commonly set for more than three years. Most are between three and 10 years, and some run for as long as 20 years. Long-term loans are c ollateralized by a business's assets and typically require quarterly or monthly payments derived from profits or cash flow. These loans usually carry wording that limits the amount of additional financial commitments the business may take on including other debts but also dividends or principals' salaries), and they sometimes require that a certain amount of profit be set-aside to repay the loan. Appropriate For: Established small businesses that can leverage sound financial statements and substantial down payments to minimize monthly payments and total loan costs. Repayment is typically linked in some way to the item financed. Term loans require collateral and a relatively rigorous approval process but can help reduce risk by minimizing costs. Before deciding to finance equipment, borrowers should be sure they can they make full use of ownership-related benefits, such as depreciation, and should compare the cost with that leasing. Supply: Abundant but highly differentiated.The degr ee of financial strength required to receive loan approval can vary tremendously from bank to bank, depending on the level of risk the bank is willing to take on. IV. BILL DISCOUNTING While discounting a bill, the Bank buys the bill (i. e. Bill of Exchange or Promissory Note) before it is due and credits the value of the bill after a discount charge to the customer's account. The transaction is practically an advance against the security of the bill and the discount represents the interest on the advance from the date of purchase of the bill until it is due for payment. Bills of exchange- A bill of exchange or â€Å"draft† is a written order by the drawer to the drawee to pay money to the payee.A common type of bill of exchange is the cheque (check in American English), defined as a bill of exchange drawn on a banker and payable on demand. Bills of exchange are used primarily in international trade, and are written orders by one person to his bank to pay the bearer a specific sum on a specific date. Prior to the advent of paper currency, bills of exchange were a common means of exchange. They are not used as often today. A bill of exchange is an unconditional order in writing addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand or at fixed or determinable future time a sum certain in money to order or to bearer.It is essentially an order made by one person to another to pay money to a third person. A bill of exchange requires in its inception three parties–the drawer, the drawee, and the payee. The person who draws the bill is called the drawer. He gives the order to pay money to third party. The party upon whom the bill is drawn id called the drawee. He is the person to whom the bill is addressed and who is ordered to pay. He becomes an acceptor when he indicates his willingness to pay the bill. The party in whose favor the bill is drawn or is payable is called the paye e. Promissory Note- A promissory note is a written promise by the maker to pay money to the payee.Bank note is frequently transferred as a promissory note, a promissory note made by a bank and payable to bearer on demand. A maker of a promissory note promises to unconditionally pay the payee (beneficiary) a specific amount on a specified date. A promissory note is an unconditional promise to pay a specific amount to bearer or to the order of a named person, on demand or on a specified date. A negotiable promissory note is unconditional promise in writing made by one person to another, signed by the maker, engaging to pay on demand, or at fixed or determinable future time, sum certain in money to order or to bearer V. EXPORT FINANCE- This type of a credit facility is provided to exporters who export their goods to different places.It is divided into two parts- pre-shipment finance and post-shipment finance. * Pre Shipment Finance is issued by a financial institution when the seller w ant the payment of the goods before shipment. * Post Shipment Finance is a kind of loan provided by a financial institution to an exporter or seller against a shipment that has already been made. This type of export finance is granted from the date of extending the credit after shipment of the goods to the realization date of the exporter proceeds. Exporters don’t wait for the importer to deposit the funds. Non Fund Based loans generate income for the bank without committing the funds of the bank. Bank generates substantial income under this head.There are two types of credit under this category which are discussed as follows:- I. BANK GUARANTEE- A bank guarantee is a written contract given by a bank on the behalf of a customer. By issuing this guarantee, a bank takes responsi