Mobile Technology Essay -- Technology, Education, Mobile Devices

The utilization of cell phones to help science educating and learning outside the study hall is additionally getting increasingly normal. Benta and Cremene (2004) proposed an interactive media m-learning application for science exercises. In this examination, the understudies perceived a plant following a Wireless Markup Language (WML) text depiction and MMS gave by the educator. While looking for the plant, the understudies spoke with their friends and the educator by trading pictures and sending MMS. A sensor framework for natural training was created utilizing cell phones by Woodgate et al. (2007) as a methods for improving student investment and inspiration. A participatory structure approach was utilized to build up the sensor framework. In this investigation the understudies gathered a scope of sensor information utilizing tests and cell phones (associated with a datalogger by means of Bluetooth). Prior Vahey and Crawford (2002) announced an investigation where tests associated with handheld PCs were utilized to decide the water nature of a stream. In this investigation, every understudy took an estimation utilizing a test at various focuses along the streambed. The understudies joined their information by radiating it on to a typical PC. At that point they utilized their handheld gadgets to break down this information and arranged charts of the consolidated informational indexes. This m-learning opportunity permitted understudies to concentrate on understanding instead of dreary procedure of recording and plotting information. Further gathering and sharing of information prompted request based logical practice in both inside and outside the study hall. Stressing the children’s comprehension of logical data on the conditions in which information was gathered, Woodgate et al. (2008) announced a second report where school understudies (age 13-15) utilized versatile senso... .../or understudies to bring ‘the outside world’ into the study hall during a science lesson(Ekanayake and Wishart,2010a). As indicated by the discoveries of this investigation, the cell phone camera could be utilized to help the instructor during the various phases of an exercise including arranging, implementating and checking on. The telephones themselves additionally helped understudies to learn science successfully by empowering community and credible learning openings. Notwithstanding this Ekanayake and Wishart (2010b) report an investigation where understudies utilized cell phone video to record the diversion of a galvanometer in an optional level science exercise. As indicated by the creators, the portable phones’ camcorder helped understudies to catch a transitory (perception) occasion which could have been missed something else. This empowered the understudies to see their perceptions over and again and share them with their companions.

The Man Of A Million Faces Essays - English-language Films

The Man Of A Million Faces Essays - English-language Films The Man Of A Million Faces The Man of a Million Faces Jim Carrey is a man who exceeds expectations at the field of satire and acting. The explanation that he exceeds expectations is that he is practical, his character embodies how a great deal of youngsters act and feel today, and he is incredibly mainstream. James Eugene Carrey is by all accounts one of the most practical individuals that you will ever observe on TV. Regardless of whether it is on the Tonight Show or Entertainment Tonight, Jim can transform any dull second into something comedic. At the point when I was as of late finding out about him I discovered that despite the fact that he is a genius he appreciates huge numbers of very similar things that us normal individuals like. For instance Jims most loved sort of food is sandwiches, chips, and a little bowl of frozen yogurt for dessert. He truly isn't in to the entire impressive superstar thing. He appreciates the straightforward things throughout everyday life. I likewise discovered that Jim adores kid's shows and his preferred character is Deputy Dog. Jim additionally wears something that a ton of people wear, Fruit of the Loom clothing. As per my perusing they are the underpants of decision for a ton of big names. At last, and I think this is more than anybody has to know, Jim inclines toward Charmin bathroom tissue. I don't have the foggiest idea why anybody would truly think about this yet it was recorded as a reality about him. Another explanation that he is so acceptable at what he does is that he demonstrations simply like the children that are watching his films. After a Jim Carrey film is discharged I recommend that you tune in to a couple of discussions among young people. You are nearly guaranteed the most recent Jim Carrey statement, and you can be certain that a pantomime isn't a long ways behind. There is only something about what he says that sticks in young people minds. Something different that sets Jim separated from all the rest is his uncanny method of making faces. Now and then you need to think about whether his jaw is disjoined. He can get things done with his mouth no other human can achieve. It is amazing. I feel that the most compelling motivation that he is so popular is his exhibition in Ace Ventura; Pet Detective. He accomplished something that a great deal of young people and grown-ups wish they could do. He conversed with his transport through his behind. Most workers want to do th at at any rate once per week, if not more. The last explanation that he exceeds expectations is the interest to have him in motion pictures and to show up at your capacity, whatever it might be. For instance as of late he showed up on the MTV Video Music Awards. Jim has nothing to do with music, yet is name alone as a main event could have been the reason for the gigantic group. His quality in a film can truly represent the moment of truth it. He has featured in the blockbusters, Ace Ventura, Dumb and Dumber, The Truman Show, Man on the Moon, and the up and coming How the Grinch Stole Christmas. Since 1982 Carrey has featured in 20 films and various TV programs. He likewise has won and been designated for some honors. So as should be obvious Jim Carrey is a generally excellent entertainer and comic. He is popular and is adored by many.

Wheeling

Wheeling Wheeling. 1 Village (1990 pop. 29,911), Cook co., NE Ill., a suburb of Chicago ; founded c.1830, inc. 1894. Machinery, computer supplies, metal and paper products, security devices, insulation, and chemicals are manufactured. 2 City (1990 pop. 34,882), seat of Ohio co., W.Va., in the Northern Panhandle, on the Ohio River; settled 1769, inc. as a city 1836. It is a manufacturing and commercial center in an area rich in coal and natural gas. Its many industrial products include metal products, chemicals, ceramics, glass, plastics, textiles, tools, tobacco, and paper goods. The city is the seat of Wheeling Jesuit Univ. Points of interest include the site of Fort Henry; St. Joseph's Cathedral; and Oglebay Park, with museums, a nature center, and an outdoor theater. Fort Fincastle, renamed Fort Henry, was built at what is now Wheeling in 1774; in 1782 it was the scene of one of the last skirmishes of the American Revolution, in which a party of British and Native American attacke rs was driven off. Wheeling became the western terminus of the National Road in 1818, a port of entry in 1831, and a railhead in 1852. A center of pro-Unionist activity during the Civil War, the town was the site of the Wheeling Conventions (1861â€"62), which provided a means of forming a new state out of the northern and western counties of Virginia. Wheeling became the first capital of West Virginia in 1863 (see Charleston ). The Columbia Electronic Encyclopedia, 6th ed. Copyright © 2012, Columbia University Press. All rights reserved. See more Encyclopedia articles on: U.S. Political Geography

What Does It Mean to Make a Claim During an Argument

Claims backed by reasons that are supported by evidence are called arguments. To win an argument, you first have to make a claim that is more than just an assertion. You use critical thinking skills and argue your case using claims, reason, and evidence. In rhetoric  and argumentation, a claim  is an arguable statement—an idea that a rhetor (a speaker or writer) asks an audience to accept. Persuasive Claims Generally speaking, there are three primary types of claims in an argument, also called persuasive claims: Claims of fact assert that something is true or not true.Claims of value assert that something is good or bad, or more or less desirable.Claims of policy assert that one course of action is superior to another. A persuasive claim in an opinion, idea, or assertion. In rational arguments, all three types of claims must be supported by evidence. Jason Del Gandio, in the book, Rhetoric for Radicals, gives these examples of persuasive claims in an argument: I think we should have universal health care.I believe the government is corrupt.We need a revolution. Gandio explains that these claims make sense, but they need to be backed up with evidence and reasoning. Identifying Claims The University of Washington says a claim persuades, argues, convinces, proves, or provocatively suggests something to a reader who may or may not initially agree with you. A claim is more than an opinion but it is less than a universally agreed upon truth, such as The sky is blue or Birds fly in the sky. An academic claim—a claim you make in an argument—is considered debatable or up for inquiry. James Jasinski explains in Argument: Sourcebook on Rhetoric that a claim expresses a specific position on some doubtful or controversial issue that the arguer wants the audience to accept. A claim is not, then, an opinion, such as I think Twinkies are delicious. But if you took that same sentence and recrafted it into an arguable statement, you could create a claim, such as Twinkies and other sugary, processed foods can make you fat. Not everyone might agree with your claim, but you would be able to use scientific and medical evidence (such as studies showing that sugary processed foods lead to weight gain and other health problems) to support your claim. Types of Claims You can further break claims in an argument into four basic types, says Mesa Community College: Claims of fact or definition: Particularly in this day and age, people disagree on hitherto commonly accepted facts. A claim of fact or definition might be that grades do not accurately measure student progress or lie detector tests are inaccurate. Traditionally, grades have been the common measure of student success, but you could argue that they do not really represent a students true abilities. And lie detector tests were at one point thought to provide clear and accurate evidence, but you could use facts to argue that they can be unreliable. Claims About Cause and Effect: This type of claim argues that given causes lead to specific effects, such as watching too much television when young leads to obesity or poor school performance. To make this claim, you would have to show evidence (scientific studies, for example) that show television leads to these outcomes. Another debatable cause-and-effect claim would be that video games that depict violence lead to real violence. Claims About Solutions or Policies: This kind of claim might argue that because the healthcare system does not adequately assist Americans (you would argue that this is a fact), it should be reformed (you argue for the solution/policy), says Mesa Community College. Claims About Value: This type of claim might be the trickiest to argue because you are trying to prove that one thing is better or superior to another. For example, you might claim that people who are blind or deaf have a unique culture of blindness or deafness. You could support either argument by researching and presenting facts that these two areas of disability do indeed have unique cultures and communities.

Financial Analysis On Financial Statements - 854 Words

Firm Performance: A Review of Financial Statements Financial crises like dot-com bubble in the late 1990s and the housing market crash in the late 2000s prompted investors, and firms, to reconsider the criticality of financial discipline. Transparency would be necessary to entice investors to spend money again, thus a firm’s financial statements became their marketing tools. These examples reinforce the importance of financial statements’ relation to the financial wellbeing of a company. This paper serves as a report on the purpose and aspects of the various financial statements and their applicability to the performance of a firm. Income Statements Income statements, also known as profit-and-loss statements, are one of the core financial statements publicly held firms must present annually. Serving as the officially documented representation of company expenses and revenues over a set duration, the income statement is often used to assess the performance and profitability of a company (Alvis, n.d.). The key expense items included on an income statement are: general and administrative expenses (GA), research and development expenses, depreciation/amortization, and cost of revenue (Alphabet, 2014). The crucial importance behind the income statement lies in its ability to lay out the relevant facts in a simplistic manner. By reviewing a company’s income statement, one can instantaneously ascertain the financial productivity of a company and their currentShow MoreRelatedThe Implications Of Bank Specialization On Its Financial Statement Analysis1097 Words   |  5 PagesWhen making a financial analysis on a bank, the type of business it conducts need to be considered. Specialization can lead a bank to operate in different practices and have a varied structure of their balance sheet. If the structure and composition of the bank is not to be considered, financial statement analysis will provide misleading information. This report will investigate the implications of bank specialization on its financial statement analysis. Specialization Larger banks specialize inRead MoreLet s Talk About Financial Statement Analysis1874 Words   |  8 PagesLet’s talk about Financial Statement Analysis is the process of reviewing and analyzing a company’s financial statements to make better decisions. When you are dealing with financial statement analysis you will be looking at income statement, balance sheet, statement of cash flows, and a statement of retained earnings. The larger field of business analysis is very significant and essential. Forecasts and jeopardy are part of the process in business analysis. Most business will make sure they haveRead MoreFinancial Statement Analysis And Financial Statements1704 Words   |  7 Pagesinformation to those that need it (Siam, Rashid, 2010). Financial statements analysis is very important to various users because it helps to express the overall financial health of the organization (Gibson, 2013). Managers use the financial statements to measure the profitability of a company, manage day to day activities and make important decisions about pricing, production that will benefit the organization (Gibson, 2013). Financial statements are also used to form contracts between organizationsRead MoreFinancial Statements And Financial Statement Analysis Essay3026 Words   |  13 PagesLITERATURE REVIEW INTRODUCTION Financial statements are usually means of communicating information on a company’s operations. They contain information on the revenues, expenses, assets, liabilities and retained earnings of the business. 2.2 FINANCIAL STATEMENT ANALYSIS According to Drake (2010), financial statement analysis is the selection, evaluation, and interpretation of financial data, along with other pertinent information, to assist in investment and financial decision-making. Moreover, itRead MoreFinancial Statement Analysis : Financial Analysis1558 Words   |  7 Pagesyou hear the phase financial statement analysis, one wonders what is stands for. financial statement analysis is one of the most important part of any company to be successful. The reason companies rely on financial statements is for the company to come profitable even if the company is small or large. When companies use financial statement, it helps them to see if they are being profitable, by being used in different areas and reviewed by different departments. Chief Financial Officer and other executivesRead MoreFinancial Statement Analysis : Financial Analysis759 Words   |  4 PagesWoolworth Financial Analysis Financial statement analysis assists a business entity, business shareholders and other people interested, to analyze the figures in financial statements to present them with superior information about such most important factors for decision making and ultimate business survival. As exemplified by Gibson (2001), income statement, balance sheet, and cash flow statements project the financial performance a company at the present and probably the future. According to theRead MoreFinancial Statement Analysis and Financial Forecasting4304 Words   |  18 PagesFinancial Statement Analysis and Financial Forecasting 4.1 Introduction. The lesson will consist of basic financial statements, its relevancy, reliability and quality as a basis for making decisions. Focus on the decision-making role of accounting system has to be elaborated. Also ratio analysis as decision tool with forecasting models is discussed. The basis concept of preparation of financial statement and its usefulness is included with ratio analysis. Cash flow analysis and financial planningRead MoreFinancial Statement Analysis1293 Words   |  6 PagesFinancial Statement Analysis April Cruz, Litesha Forbes, Phillip Gibson, Jessica Hewlett, Lily James, Velda Justin, and Nzingha Reel ACC/561 September 27, 2010 Mark Tischler Financial Statement Analysis The accounting information of this paper provides a financial statement analysis for three distinct companies: Mercedes Benz, a foreign manufacturer of vehicles; Macy’s Inc, a retail department store, and American Airlines, an airline company. The analysis for each companyRead MoreThe Analysis Of Financial Statements1876 Words   |  8 PagesThe analysis of financial statements is the critical process that is aimed at assessing the present and past financial position and the results of operations that are carried out in a company. The primary objective of this analysis is to establish the best possible estimates and predictions about future results and conditions that the company can reach. It is based on two primary pieces of knowledge, where the first is the in-depth knowledge of the accounting model and the second would be the domainRead MoreFinancial Statement Analysis4339 Words   |  18 PagesChapter 2 Introduction to Financial Statement Analysis 2-1. What are the four main financial statements? What checks are there on the accuracy of these statements? The four financial statements are: the balance sheet, the income statement, the statement of cash flows, and the statement of changes in shareholders’ equity. Financial are required to be audited by a neutral third party, who checks and ensures that the financial statements are prepared according to GAAP or accounting standards

Mutagen Free Essays

Quantification of a Mutagen: Tobacco By Selenia Lopez November 30, 2012 Section 44 Abstract: Tobacco is commonly used and kills millions until this day. Tobacco is a potential mutagen due to all the chemicals added. The spot overlay Ames test was conducted to test at what concentration of tobacco was it at the most mutagenic. We will write a custom essay sample on Mutagen or any similar topic only for you Order Now The hypothesis of this experiment was as the concentration of tobacco increases, the growth of bacteria increases. The control for this experiment had a UV positive and a UV negative. Four different tobacco concentrations, Salmonella Typhimurium of strain 1538 were incubated for 24-72 hours to observe bacterial growth. At a 100% bacterial growth was at its greatest number of colonization and at 5% the mutagen was at its least. These results reflected that tobacco has the ability to grow without histidine making it a mutagen and at which concentration was it the most mutagenic. Intro: A mutagen is a substance which increases the frequency of mutation in a plant or animal population, which can lead to a variety of consequences or alterations in the DNA structure (Ligorio, Izzotti, Pulliero, Arrigo 2011). Salmonella being a mutagen can cause mutations such as substitution, insertion, deletion and frame shift depending on the strain. S. typhimurium carries a defective gene making it unable to synthesize histidine from its culture medium. Some types of mutations can be reversed with the gene regaining its function. Tobacco having lots of chemicals with possibility of being mutagenic is known to kill an estimated six million people worldwide each year and drains $500 billion annually. It can be consumed as a pesticide and in the form of nicotine tartrate. It is sometimes used in some medicines, but most commonly used as a drug. The use of Ames test is based on the assumption that any substance that is mutagenic. For this eason the FDA uses the Ames test to screen many chemicals to measures the mutagenic strength in bacterial cells (FDA 2012). In this experiment to test whether tobacco is mutagenic and if so at what concentration has the greatest bacterial growth. The spot overlay Ames test was conducted. Though it’s a cheap version of the Ames test, the result were still compatible. The hypothesis of this ex periment was as the concentration of tobacco increases, the growth increases. The greatest growth should occur in the 100% concentration and the least in the 5% concentration. Methods and materials: The control for the experiment was an Agar plate that had a UV positive reactant with a known mutagen, and UV negative reactant that hasn’t been reactant with anything. With a micro pipette that amounted to 250ul, strain TA 1538 of Salmonella was Obtained and placed on to the Agar plate and spread with a sterilized rod. The four paper discs that have been soaked in the 5%, 25%, 50%, and 100% of tobacco concentration were placed spaced apart on the plate. The plate was sealed and place it in the incubator at 37 degree for 24-72 hours. Results: Table 1: The table shows the concentration of mutagens to the number of colonies observed. Concentrations | Colonies | 100% | 39 | 50% | 13 | 25% | 8 | 5% | 2 | The control resulted in the UV positive having growth and the UV negative having none at all. At a 100% bacterial growth was at its greatest number of colonization at 39. At 5% the mutagen was at its least with only 2 colonies. Discussion: The mutagenic effect of the chemical has caused many bacteria to regain the ability to grow without histidine in tobacco, causing the formation of the colonies seen around the disc (Pounikar and Dawande 2010). Not only is a tobacco a mutagen, but colony growth increased as the concentration increased. The hypothesis was supported according to the data show in the table. Even though the disc were slightly shifted. The numbers were still attainable. The 100% concentration had the highest bacterial colonization and the 5% concentration had the least as predicted. In future experiments, more trials can be done. In order to make sure the results will remain the same every time; or using other mutagens to see how they react in the 100% concentration. This type of experiment can also be useful in finding out whether smoking tobacco or chewing tobacco is more mutagenic or if the different brands make a difference on how mutagenic they can be. Works Cited Asiatic Journal of Biotechnology Resources: Pounikar, R and Dawande, A. Y. (2010). Detection of potential carcinogens by Ames test. Doi: 01: 57-64. Department of Health Sciences: Ligorion M, Izzotti A, Pulliero A, and Arrigo P. (2011) Mutagens interfere with microRNA maturation by inhibiting DICER. An in silico biology analysis. Doi: 10. 1016 www. FDA. gov: Li Y, Yan J, Bishop M, Jones MY, Watanabe F, Biris AS, Rice P, Zhou T, Chen T. (2011) Genotoxicity evaluation of titanium dioxide nanoparticles using the Ames test and Comet assay. How to cite Mutagen, Essay examples Mutagen Free Essays Quantification of a Mutagen: Tobacco By Selenia Lopez November 30, 2012 Section 44 Abstract: Tobacco is commonly used and kills millions until this day. Tobacco is a potential mutagen due to all the chemicals added. The spot overlay Ames test was conducted to test at what concentration of tobacco was it at the most mutagenic. We will write a custom essay sample on Mutagen or any similar topic only for you Order Now The hypothesis of this experiment was as the concentration of tobacco increases, the growth of bacteria increases. The control for this experiment had a UV positive and a UV negative. Four different tobacco concentrations, Salmonella Typhimurium of strain 1538 were incubated for 24-72 hours to observe bacterial growth. At a 100% bacterial growth was at its greatest number of colonization and at 5% the mutagen was at its least. These results reflected that tobacco has the ability to grow without histidine making it a mutagen and at which concentration was it the most mutagenic. Intro: A mutagen is a substance which increases the frequency of mutation in a plant or animal population, which can lead to a variety of consequences or alterations in the DNA structure (Ligorio, Izzotti, Pulliero, Arrigo 2011). Salmonella being a mutagen can cause mutations such as substitution, insertion, deletion and frame shift depending on the strain. S. typhimurium carries a defective gene making it unable to synthesize histidine from its culture medium. Some types of mutations can be reversed with the gene regaining its function. Tobacco having lots of chemicals with possibility of being mutagenic is known to kill an estimated six million people worldwide each year and drains $500 billion annually. It can be consumed as a pesticide and in the form of nicotine tartrate. It is sometimes used in some medicines, but most commonly used as a drug. The use of Ames test is based on the assumption that any substance that is mutagenic. For this eason the FDA uses the Ames test to screen many chemicals to measures the mutagenic strength in bacterial cells (FDA 2012). In this experiment to test whether tobacco is mutagenic and if so at what concentration has the greatest bacterial growth. The spot overlay Ames test was conducted. Though it’s a cheap version of the Ames test, the result were still compatible. The hypothesis of this ex periment was as the concentration of tobacco increases, the growth increases. The greatest growth should occur in the 100% concentration and the least in the 5% concentration. Methods and materials: The control for the experiment was an Agar plate that had a UV positive reactant with a known mutagen, and UV negative reactant that hasn’t been reactant with anything. With a micro pipette that amounted to 250ul, strain TA 1538 of Salmonella was Obtained and placed on to the Agar plate and spread with a sterilized rod. The four paper discs that have been soaked in the 5%, 25%, 50%, and 100% of tobacco concentration were placed spaced apart on the plate. The plate was sealed and place it in the incubator at 37 degree for 24-72 hours. Results: Table 1: The table shows the concentration of mutagens to the number of colonies observed. Concentrations | Colonies | 100% | 39 | 50% | 13 | 25% | 8 | 5% | 2 | The control resulted in the UV positive having growth and the UV negative having none at all. At a 100% bacterial growth was at its greatest number of colonization at 39. At 5% the mutagen was at its least with only 2 colonies. Discussion: The mutagenic effect of the chemical has caused many bacteria to regain the ability to grow without histidine in tobacco, causing the formation of the colonies seen around the disc (Pounikar and Dawande 2010). Not only is a tobacco a mutagen, but colony growth increased as the concentration increased. The hypothesis was supported according to the data show in the table. Even though the disc were slightly shifted. The numbers were still attainable. The 100% concentration had the highest bacterial colonization and the 5% concentration had the least as predicted. In future experiments, more trials can be done. In order to make sure the results will remain the same every time; or using other mutagens to see how they react in the 100% concentration. This type of experiment can also be useful in finding out whether smoking tobacco or chewing tobacco is more mutagenic or if the different brands make a difference on how mutagenic they can be. Works Cited Asiatic Journal of Biotechnology Resources: Pounikar, R and Dawande, A. Y. (2010). Detection of potential carcinogens by Ames test. Doi: 01: 57-64. Department of Health Sciences: Ligorion M, Izzotti A, Pulliero A, and Arrigo P. (2011) Mutagens interfere with microRNA maturation by inhibiting DICER. An in silico biology analysis. Doi: 10. 1016 www. FDA. gov: Li Y, Yan J, Bishop M, Jones MY, Watanabe F, Biris AS, Rice P, Zhou T, Chen T. (2011) Genotoxicity evaluation of titanium dioxide nanoparticles using the Ames test and Comet assay. How to cite Mutagen, Papers

Reaction Paper Yolanda doc Essay Example

Reaction Paper Yolanda doc Essay The PAGES does not have a us per typhoon classification so it is indeed the strongest typhoon ever struck Philippines. The worst hit provinces were Letter and Eastern Samara, with a combined population of 2. 3 million, winds of 270 kip up to 312 kip, and a storm surge as high as 7 meters or 21 feet. We only thought the typhoon Holland will come in and out of country for a few days and everything will be back to normal but then we under estimated it and never thought that it will leave Philippines with mass devastation killing thousands of people. We did think that government agencies were prepared or the coming of this super typhoon however, it was not enough. Many were blaming the government as the usual way of thinking of Filipinos but in this case no one is to blame but also people who did not want to evacuate when they were told to evacuate. Page 2 The super typhoon Holland leaving the Philippines with a death toll of 6,201 people, over 28,626 injured and more than 1,785 still missing. The days after the weapon Holland strutted Central Philippines, raking-off 1. 1 million houses left people homeless and displaced. Day by day, bodies are till being found, survivors were struggling without food, shelters and clean drinking water, so everyhere in those provinces was just a total bedlam. Then relief goods were sent in the area but there were no order, many people have been looting and so many people were blaming the government for having no preparations, contingency plans and could not even conduct the relief operations orderly. Government were hit by many criticisms brought by the local and international media but I have to say they must also know days before this happened, the National Disaster Risk Reduction Management We will write a custom essay sample on Reaction Paper Yolanda doc specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Reaction Paper Yolanda doc specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Reaction Paper Yolanda doc specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Council and DILL had made efforts to activate all local government units to immediately evacuate families in the non-safe zones. As early as November 6, 201 3, Interior and Local Government Secretary Mar Rosa gave instructions to all governors and mayors in the Bucolic, Eastern Visas and Immoral to activate their local disaster risk reduction and management councils and disaster monitoring systems in preparation for the land fall of the super typhoon. Age 3 Rosa, who is also the vice chairman for disaster preparedness of the National Disaster Risk Reduction and Management Council, (MODERN) said he local executives should immediately adopt measures on how to effectively warn residents, particularly those living along the coastlines and other danger areas, on the possible impact this super typhoon. Other than that, Rosa and his team arrived at Tactical Letter the day before the typhoon hit Central Visas region to make sure all necessary measures are carried out. Hundreds of thousands of people were evacuated before the typhoon arrived, but many evacuation centre schools, churches and government buildings proved unable to withstand the winds and storm surges. However, still, many residents near the danger zones such as the coastal areas did not want to leave their homes as they think this typhoon is like the other typhoon where they can overcome. In this scenario think government is not only to blame here. We also have to accept the fact that Filipinos are fond of point fingers at someone after the damage has been done but the truth is we must see what is more beyond that. Our country has been always getting many types of natural calamities but it is time to face what message these calamities are telling us, we have to hang as people. We have to admit that as residents of this country where we live every day, we have to take responsibility too. Philippines is our home and we must do our own share to protect it. Like what we always learn in elementary, the Family is the basic unit Of the Page 4 society but why are we are not protecting our family, instead, we let our government to protect our family. Looking at the ratio, our government cannot protect all Filipino families which are about millions, but they are always there to guide us and help us the way they can. Live that it is time that we stop looking who is to blame and look at the Holland tragedy as a big lesson that we should not just do people power to oust a President or to complain with the performance of our government but we should begin using people power to protect and help our own families and comma unities. An see the spirit of Banning is very much alive but always only during the times of disasters or after the damage has been done. Yes there were many relief giving efforts initiated by fellow Filipinos here and abroad that is go will but there why dont we inspire and use our banning to prevent starters, to secure our Filipino families first? That would lessen the number Of casualties. Thus, in my view, yes this is a super typhoon and so unfortunate that in all countries around the world it struck Philippines. Many Filipinos are making comments and taking this tragedy positively that this Philippines was hit because Filipinos are strong people and can handle and sun,vive these tragedies. It is positive in a way but it is sad that we even think like we deserve this devastation because we are strong people. It is never the measure of who is the toughest but if we can age 5 do something to prevent it then why not do it? I see this Holland tragedy as a lesson for all Filipinos that we should move forward, we must strive to make our lives better and thus make our homes safe to live in. This is our homeland so we must protect it. Let us learn to do our part as citizens of this country and stop the habit of blaming and whining at other people or to the government. The change must come from ourselves, let us make ourselves a good role model for the youth which will produce great future leaders with high morals and not the trashy future leaders.

How to Start a Private School

How to Start a Private School Starting a private school is a lengthy and complicated process. Fortunately for you, plenty of folks have done the same thing you are thinking of doing. You will find much inspiration and practical advice from their examples. In fact, you will find it extremely useful browsing the history section of any established private schools website. Some of these stories will inspire you. Others will remind you that starting a school takes lots of time, money and support. Here is a timeline for the tasks involved with starting your own private school. Todays Private School Climate Below, important information is outlined to guide you through the process, however, its important to note that in todays economic climate, many private schools are struggling. The Atlantic reports that private k12 schools saw an almost 13% decline over the course of a decade (2000-2010). Why is this? The National Association of Independent Schools reports that the growth forecast for 2015-2020 is declining, with fewer school-aged children between the ages of 0-17. Fewer children mean fewer students to enroll.   The cost of private school, and especially boarding school, is also concerning. In fact, The Association of Boarding Schools (TABS) published a strategic plan for 2013-2017, in which it pledged to increase efforts to help schools identify and recruit qualified families in North America. This pledge led to the creation of  the North American Boarding Initiative to address the declining enrollment in private boarding schools. This passage is taken from their website: For various economic, demographic, political, and cultural reasons, the sector has faced serious enrollment challenges during distinct periods in its distinguished history, surviving the Great Depression, the specter of two World Wars, and the social turbulence of the 60s and 70s, among other disjunctions. Always, boarding schools have adapted: ending discriminatory policies and admitting students of different races and religions; adding day students; becoming coeducational; expanding philanthropy; investing aggressively in financial aid; modernizing curriculum, facilities, and student life; and recruiting internationally.Again, we face a serious enrollment challenge. Domestic boarding enrollment has declined gradually, yet consistently, for more than a dozen years. Its a trend that shows no sign of reversing itself. Moreover, multiple surveys have confirmed that a lions share of boarding school leaders identify domestic boarding as their most pressing strategic challenge. As a commu nity of schools, it is time once again to take decisive action. Considerations In todays day and age, it does warrant careful consideration and planning to determine if creating another private school in this already struggling market is appropriate. This assessment will vary greatly on a number of factors, including the strength of area schools, the number of and quality of competitor schools, geographic area, and needs of the community, among others.   For example, a rural town in the midwest without strong public school options may benefit from a private school. However, in an area like New England, which is already home to more than 150 independent schools, starting a new institution might not be quite as successful.   Identify Your Niche 36-24 months before opening: Determine what kind of school the local market needs. (K-8, 9-12, day, boarding, Montessori, etc.) Ask parents and teachers for their opinions. If you can afford it, hire a marketing company to do a survey. It will help you focus your efforts and ensure that youre making a sound business decision. Once you determine what kind of school you will be opening, then decide how many grades will actually open the school. Your long-range plans may call for a K-12 school, but it makes more sense to start small and grow solidly. Establish the primary division, then add the upper grades over time as your resources permit. Form a Committee 24 months: Form a small committee of talented supporters to begin the preliminary work. Include parents with financial, legal, management and building experience. Ask for and get a commitment of time and financial support from each member. This important planning work which will demand much time and energy. These people can become the core of your first board of directors. Co-opt additional paid talent, if you can afford it, to guide you through the various challenges, indeed, roadblocks, which will inevitably confront you. Incorporate 18 months: File incorporation papers with your Secretary of State. The lawyer on your committee should be able to handle this for you. There are costs associated with the filing, but he should donate his legal services to the cause. This is a critical step in your long-term fundraising. People will give money much more readily to a legal entity or institution as opposed to a person. If you have already decided to establish your own proprietary school, you will be on your own when it comes to raising money. Develop a Business Plan 18 months: Develop a business plan. This should be a blueprint of how the school is going to operate over its first five years. Always be conservative in your projections. Do not try to do everything in the first five years unless you have been lucky enough to find a donor to fund the program in its entirety. Develop a Budget 18 months: Develop a budget for 5 years. This is the detailed look at income and expenses. The financial person on your committee should be responsible for developing this critical document. As always project your assumptions conservatively and factor in some wriggle room should things go wrong. You need to develop two budgets: an operating budget and a capital budget. For example, a swimming pool or an arts facility would fall under the capital side, while planning for social security expenses would be an operating budget expense. Seek expert advice. Find a Home 20 months: Locate a facility to house the school or develop building plans if you will be creating your own facility from scratch. Your architect and contractor committee members should spearhead this assignment. Think carefully before you leap at acquiring that wonderful old mansion or vacant office space. Schools require good locations for many reasons, not the least of which is safety. Older buildings can be money pits. Investigate modular buildings which will be greener as well. Tax-Exempt Status 16 months: Apply for tax-exempt 501(c)(3) status from the IRS. Again, your lawyer can handle this application. Submit it as early in the process as you can so that you can begin to solicit tax-deductible contributions. People and businesses will definitely look at your fundraising efforts much more favorably if you are a recognized tax-exempt organization.Tax-exempt status might also help with local taxes as well, though I do recommend your paying local taxes whenever or wherever possible, as a gesture of goodwill. Choose Key Staff Members 16 months: Identify your Head of School and your Business Manager. Conduct your search as widely as possible. Write job descriptions for these and all your staff and faculty positions. You will be looking for self-starters who enjoy building something from scratch. Once IRS approvals are in place, hire the head and the business manager. They need the stability and focus of a steady job to get your school open. You need their expertise to ensure an opening on time. Solicit Contributions 14 months: Secure your initial funding - donors and subscriptions. You will need to plan your campaign carefully so that you can build momentum, yet are able to keep pace with actual funding needs. Appoint a dynamic leader from your planning group to ensure the success of these initial efforts. Bake sales and car washes are not going to yield the large amount of capital which you will need. Well-planned appeals to foundations and local philanthropists will pay off. If you can afford it, hire a professional to help you write proposals and identify donors. Identify Your Faculty Requirements 14 months: It is critical to attract skilled faculty. Do so by agreeing to competitive compensation. Sell them on the vision of your new school. The chance to shape something is always appealing. While it is still over a year until you open, line up as many faculty members as you can. Do not leave this important job until the last minute. An agency such as Carney, Sandoe Associates will be helpful at this stage in finding and vetting teachers for you. Spread the Word 14 months: Advertise for students. Promote the new school through service club presentations and other community groups. Design a website and set up a mailing list to keep interested parents and donors in touch with your progress. Marketing your school is something which has to be done consistently, appropriately and effectively. If you can afford it, hire an expert to get this important job done. Open for Business 9 months: Open the school office and begin admissions interviews and tours of your facilities. January before a fall opening is the latest you can do this. Ordering instructional materials, planning curricula and devising a master timetable are just some of the tasks your professionals will have to attend to. Orient and Train Your Faculty 1 month: Have faculty in place to get the school ready for opening. The first year at a new school requires endless meetings and planning sessions for the academic staff. Get your teachers on the job no later than August 1 in order to be prepared for opening day. Depending on how lucky you are at attracting qualified teachers, you may have your hands full with this aspect of the project. Take the time needed to sell your new teachers on the schools vision. They need to buy into it, or else their negative attitudes could create a host of problems. Opening Day Make this a soft opening at which you welcome your students and any interested parents at a brief assembly. Then off to classes. Teaching is what your school will be known for. It needs to begin promptly on Day 1. The formal opening ceremonies should be a festive occasion. Schedule it for a few weeks after the soft opening. Faculty and students will have sorted themselves out by then. A feeling of community will be apparent. The public impression which your new school will make will be a positive one. Invite local, regional and state leaders. Stay Informed Join national and state private school associations. You will find incomparable resources. The networking opportunities for you and your staff are virtually limitless. Plan on attending association conferences in year 1 so that your school is visible. That will ensure plenty of applications for vacant positions in the following academic year. Tips Be conservative in your projections of revenues and expenses even if you have an angel who is paying for everything.Make sure real estate agents are aware of the new school. Families moving into the community always ask about schools. Arrange open houses and gatherings to promote your new school.Submit your schools website to sites like this one so that parents and teachers can become aware of its existence.Always plan your facilities with growth and expansion in mind. Be sure to keep them green as well. A sustainable school will last many years. One which is planned without any consideration of sustainability will fail eventually.

Aurora Borealis or Northern Lights

Aurora Borealis or Northern Lights The aurora borealis, also called the Northern Lights, is a multi-colored brilliant light show in the Earths atmosphere that is caused by the collision of gas particles in the Earths atmosphere with charged electrons from the suns atmosphere. The aurora borealis is most often viewed at high latitudes close to the magnetic north pole but during times of maximum activity, they can be viewed very far south of the Arctic Circle. Maximum auroral activity is rare however and the aurora borealis is normally only seen in or near the Arctic Circle in places like Alaska, Canada, and Norway. In addition to the aurora borealis in the northern hemisphere there is also the aurora australis, sometimes called the Southern Lights, in the southern hemisphere. The aurora australis is created the same way as the aurora borealis and it has the same appearance of dancing, colored lights in the sky. The best time to view the aurora australis is from March to September because the Antarctic Circle experiences the most darkness during this period. The aurora australis is not seen as often as the aurora borealis because they are more concentrated around Antarctica and the southern Indian Ocean. How the Aurora Borealis Works The aurora borealis is a beautiful and fascinating occurrence in the Earths atmosphere but its colorful patterns begin with the sun. It occurs when highly charged particles from the suns atmosphere move into the Earths atmosphere via the solar wind. For reference, the solar wind is a stream of electrons and protons made of plasma that flow away from the sun and into the solar system at around 560 miles per second (900 kilometers per second) (Qualitative Reasoning Group). As the solar wind and its charged particles enter the Earths atmosphere they are pulled toward the Earths poles by its magnetic force. While moving through the atmosphere the suns charged particles collide with the oxygen and nitrogen atoms found in the Earths atmosphere and the reaction of this collision forms the aurora borealis. The collisions between the atoms and charged particles occur around 20 to 200 miles (32 to 322 km) above the Earths surface and it is the altitude and type of atom involved in the collision that determines the color of the aurora (How Stuff Works). The following is a list of what causes the different auroral colors and it was obtained from How Stuff Works: Red - oxygen, over 150 miles (241 km) above the Earths surfaceGreen - oxygen, up to 150 miles (241 km) above the Earths surfacePurple/violet - nitrogen, over 60 miles (96 km) above the Earths surfaceBlue - nitrogen, up to 60 miles (96 km) above the Earths surface According to the Northern Lights Centre, green is the most common color for the aurora borealis, while red is the least common. In addition to the lights being these various colors, they also appear to flow, form various shapes and dance in the sky. This is because the collisions between the atoms and the charged particles are constantly shifting along the magnetic currents of the Earths atmosphere and the reactions of these collisions follow the currents. Predicting the Aurora Borealis Today modern technology allows scientists to predict the strength of the aurora borealis because they can monitor the strength of the solar wind. If the solar wind is strong auroral activity will be high because more charged particles from the suns atmosphere will move into the Earths atmosphere and react with the nitrogen and oxygen atoms. Higher auroral activity means that the aurora borealis can be seen over larger areas of the Earths surface. Predictions for the aurora borealis are shown as daily forecasts similar to weather. An interesting forecasting center is provided by the University of Alaska, Fairbanks Geophysical Institute. These forecasts predict the most active locations for the aurora borealis for a specific time and give a range showing the strength of auroral activity. The range begins at 0 which is minimal auroral activity that is only viewed at latitudes above the Arctic Circle. This range ends at 9 which is maximum auroral activity and during these rare times, the aurora borealis can be seen at latitudes much lower than the Arctic Circle. The peak of auroral activity typically follows an eleven-year sunspot cycle. During times of sunspots, the sun has very intense magnetic activity and the solar wind is very strong. As a result, the aurora borealis is also normally very strong at these times. According to this cycle, the peaks for auroral activity should occur in 2013 and 2024. Winter is usually the best time to view the aurora borealis because there are long periods of darkness above the Arctic Circle as well as many clear nights. For those interested in viewing the aurora borealis there are some places that are best for viewing them frequently because they offer long periods of darkness during the winter, clear skies and low light pollution. These locations include places like Denali National Park in Alaska, Yellowknife in Canadas Northwest Territories and Tromsà ¸, Norway. Importance of the Aurora Borealis The aurora borealis has been written about and studied for as long as people have been living in and exploring the polar regions and as such, they have been important to people since ancient times and possibly earlier. For example, many ancient myths talk about the mysterious lights in the sky and some medieval civilizations feared them as they believed that lights were a sign of impending war and/or famine. Other civilizations believed the aurora borealis was the spirit of their people, great hunters and animals like salmon, deer, seals, and whales (Northern Lights Centre). Today the aurora borealis is recognized as an important natural phenomenon and every winter people venture into northern latitudes to watch it and some scientists devote much of their time to studying it. The aurora borealis is also considered one of the Seven Natural Wonders of the World.

Currency markets and their effects on the U.S. economy Essay

Currency markets and their effects on the U.S. economy - Essay Example This paper discusses currency markets, how they operate, and how they affect the economy of the United States. The specific cases of two foreign currencies - the Euro and the Japanese Yen - and the impact of their movements on the U.S. economy are analyzed to provide a clearer picture that would facilitate the understanding of the theory.Although the term "currency" is synonymous with "money" that is a medium of economic exchange, what would be discussed in this paper is the currency market, not the money market. The reasons for this distinction will be explained below.A currency market, like any other market, is a place where currencies are bought and sold. This is different from a money market, which is where monetary or financial instruments such as bonds, stocks, derivatives, insurance policies, mutual funds and similar goods are transacted. However, currency and money markets share four key elements that allow transactions in any market to take place.First, the market should exi st either physically in a building as the New York Stock Exchange, the Chicago Mercantile Exchange for commodities, or a neighborhood flea market, or virtually in a computer system which is the case for most markets where bonds, derivatives, or currencies are bought and sold. In the currency market, there is no single location where currencies are traded. Instead, there are many trades taking place, in banks, moneychangers, shops, even hotels, and each venue has a set of exchange rates for "buy" and "sell" bids, with the latter usually higher by a fraction. These rates are the prices that the agent is willing to pay for (buy) or get paid for (sell) in transacting each currency. Then, there should be goods that are exchanged in this market; buyers and sellers who either buy or sell the goods; and money that is used as the medium of exchange. A market transaction is therefore where buyers acquire from sellers certain goods in exchange for money at an agreed price. The main difference between all the other types of markets such as money markets and a currency market is that in a currency market, the goods bought and sold are currencies and the payments are also made in currencies that are denominated differently from that which is sold or bought. Therefore, in a currency market, someone or an entity that wants to buy U.S. dollars can buy it using Euros (denomination of the Eurozone currency), Yen (Japan), Pounds Sterling (United Kingdom), and so on. This brings an important question to mind: how much is a U.S. dollar worth, and if what it is worth determines the price that others are going to pay for it, why is the currency of the U.S. not the same as the currency of other countries What determines the price of currencies in the market The answers to these questions depend on an understanding of what is called the monetary system, or the way the money supply is determined in each country and, therefore, in the whole world. Knowing how the monetary system operates will give a better understanding of how currency prices are determined in the currency market. Monetary System A clear understanding of the world's monetary system will explain how a currency is valued, how its value compares with other currencies defined by the exchange rate, the roles that exchange rates play in the world economy, and how exchange rates are determined. Solomon (in Samuelson and Nordhaus) described the monetary system as follows: 'The world's monetary system is like the traffic lights in a city, taken for granted until it begins to malfunction and to disrupt people's livesA well-functioning monetary system will facilitate international trade and investment and smooth adaptation to change. A monetary system that functions poorly may not only discourage the development of trade and investment among nations but subject their economies to disruptive shocks when necessary adjustments are prevented or delayed" (1, 7)

Critical Writing Essay Example | Topics and Well Written Essays - 750 words

Critical Writing - Essay Example programs coordinator at the graduate center in New York and commendably contributed to the success of Luso-Brazilian and Hispanic Literatures in the university. She has conducted several studies to investigate how foreign students are affected by the American education system, predominantly the challenge of coping up with a new educational culture and language. The authors pinpoint that bilingual education started receiving widespread support in the USA in late 1960s. The upsurge in number of students coming from Puerto Rico and Mexico and the wave of civil rights movement instigated the government to provide additional funding for educational programs to facilitate knowledge acquisition through English. Several acts such as ESEA (elementary and secondary education act) were formulated and implemented to force government and institutions to prepare bilingual teachers who will aid in the facilitating success of the educational programs (Bartlett & GarciÃŒ a, 2007). In 1974, the Bilingual Education Act constricted the goal of bilingual education to Transitional Bilingual Education where students received thorough instructions through English, implying that not only limited English speakers were to learn the language but the entire student fraternity. However, for the first 3 years, content was delivered in English as students prepared to start sedate English classes. In 1990, Americans started disapproving the use of educational resources to teach in other languages other English. Americans perceived phonological proficiency in English as an emblem of unity and fidelity to the state, and started demanding that immigrants drop their native languages and espouse into the American community by learning English. The high rate of Latino drop outs and their failure to be intellectually competitive was blamed on bilingual education, further arguing that it led to discrimination of English learners within schools. Currently,

Basel II Accord Effects on Qatar Banking

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