Possession Of Knowledge: Ethical Responsibility

Possession Of Knowledge: Ethical Responsibility What is ethical responsibility? Ethical responsibility means fulfilling obligations in all ethical areas, or as many areas as possible. When an ethical dilemma occurs, involved individuals must choose between wide varieties of ethical principles and weigh which ones should be emphasized. Possession of knowledge does carry an ethical responsibility because there are certain kinds of knowledge that inflict a compulsion or a challenge on the person who carries that knowledge. For example if someone discovers a murder scene or even a robbery the person will choose whether he should reveal the information as he knows that if he reveals the information hell potentially harm the person. Or keep it inside by not revealing the incident to anyone. We can say that basically when you are helping a person without harming any other person, which is when you possess knowledge that carries an ethical responsibility and if you disclose that knowledge it should help someone. If you see that in some si tuations it doesnt carry an ethical situation when it doesnt affect any person or the piece of information is worthless but in todays world no piece of information can have an ethical responsibility as it can be used in different ways. You can see that there is a conflict of interest in any of these situations. The ethical responsibility consists in the decision the person must make, being each persons moral values and sense of what is right and what is wrong, what finally changes this decision. We can see that the decision of the person depends on how many person are getting affected its also the affection or the bond which you share with the person affects the decision of the person. We know that possession of knowledge carries ethical responsibility but why? And When? If you see, when you are helping people in an ethical way or an unethical way possession of knowledge carries responsibility and we know that at some places it doesnt carry ethical responsibility that is when it cau ses harm to anyone for example destruction as I have mentioned an example of Albert Einstein . You must have heard the famous quote said by Peter Parker that With great powers comes great responsibility. Im using this claim as you can see that with possession of great knowledge comes great responsibility. For example if the doctor knows about the genetic disposition of a child should he tell the parent or the guardian about it. In some cases you are obligated to act upon it in case of a crime you are forced to say your views and tell the person or people what you saw, sometimes it is ethical to disclose it but still you cant thinking about the consequences, emotions etc. For example you have a friend whom you know since many years and youll are very close to each other and he commits some crime youll have to say false as he is friend and youll support him which is unethical. Same thing like telling the parent whether they have a male child or female child is ethically wrong so you can see that possession of knowledge does carry ethical responsibility. During the World War 2 Al bert Einstein gave Franklin D. Roosevelt the president of United States of America the idea of creating an atomic bomb. They also came to know that Germany was planning to make atomic bombs. When Roosevelt got to know about this he started the Manhattan Project- In this project the government of United States of America were planning to make atomic bombs before Germany could. At the time he thought what he was doing was right but after seeing the negative effects he had, he ended up regretting it. Knowing what he knew carried an ethical responsibility and his morals were questioned. Knowledge can be stopped to generate in fear of unethical use, when there is a piece of knowledge which can potentially harm people care should be taken when releasing this information. If there is an obvious application which will potentially harm people, they will be apprehensive towards it. For example if you have an information about some murder you would rather think twice before disclosing the piec e of news or knowledge you possess as it will generate fear in you and you may start thinking about your own safety. Sometime Holding Back of knowledge by groups such as government can be ethical. Some groups like a government hold back a particular piece of knowledge for mainly 2 causes. If the piece of knowledge when disclosed could cause chaos or panic in the country or surroundings. Government generally do this to maintain the chaos in the country, the forcefully hold back the piece of knowledge. The source of knowledge holds a strong ethical stance The other day in my school when all the students and teachers were discussing about the rape case which recently happened in delhi, place in india a top came and the our juniors showed us the video of a man who was presidents son he made a statement saying that boys and girls who go to discos shouldnt take part in any movement. The person who invented the nuclear bomb was later regretting of his invention as it caused so much destruction in the world. He was so pressurized that he made a comment saying that he was rather ashamed of the invention and wasnt a successful invention for him. His invention was later used as a tool of mass destruction by the countries in the world war, as you can see that how Hiroshima and Nagasaki were in ashes. The 2 bombs used were little boy and fat man. The bomb that was dropped on Hiroshima was code-named Little Boy. The amount of energy Little Boy generated when it exploded was the equivalent of a 15 kiloton TNT explosion. Half of that energy was consumed when the explosion generated an ultra-high air pressure which resulted in a very strong bomb blast. Sometimes holding back of knowledge or news can be unethical if you take an example of an individual holding back a piece of news can be unethical, for example hiding the truth of 9/11 was unethical as the people didnt know and they were misled by the media so here you can see that holding back of knowledge was unethical and let to various problems. Some people or group of people have the power to decide whether the piece of knowledge is ethical or unethical? When you receive a particular piece of knowledge who judges whether the knowledge is ethical or unethical. There are many people, group of people that judge whether the knowledge is ethical or unethical or example your parents used to tell you some piece of knowledge when you were young and used to decide whether it is ethical or unethical. Even religious leaders make decisions and say whether a particular piece of knowledge is ethical or unethical. Some organizations like a government also have the power to decide whether a piece of knowledge is ethical or unethical. People or Groups of people dont have the power to judge whether the piece of knowledge is ethical or unethical. If you think logically a person who judges whether a piece of knowledge is ethical or unethical is a bit biased while making their decision for example when a piece of knowledge is judged by the government they are a bit biased in their side. According to me possession of knowledge does carry an ethical responsibility as I have mentioned some claims and example proving my point but there were some limitations which I have written as my counter claims. But at certain situations we can see that the possession of knowledge carries no ethical responsibility

Free Narrative Essays - Making Plans :: Personal Narrative Essays

Making Plans It was a gorgeous summer morning as I, my brother David, sister Marcia, mom, dad, and baby girl were traveling home to Laramie from Colorado Springs where we had gone to visit my grandma. The atmosphere in the car was fun and filled with laughter. We were glad to be together. Our chatter was constant and our conversations often overlapped. One learned young that if you want to be heard in my family, you must merely speak louder than everyone else. Or, you might simply say, "Would you please shut up for a minute so I can say something important?" We all understood that such a plain and politely spoken command was not meant to be offensive or at all disrespectful. We were a bit louder than usual that morning as we had great plans for the day. Since we had to travel through Denver, we all agreed that we should eat at a nice restaurant and then go to the zoo where we could eat some more and see the animals then probably eat some more. Daddy was a bit tense and growly, his usual demeanor when traffic was thick as it was on that Friday morning. "Everyone and their Grandma is on this one road to Denver," he grumbled. My Daddy is claustrophobic. He hates traffic which is the main reason I think we moved long ago to Wyoming, the land of wide-open spaces. "You can drive more than a hundred miles on a Wyoming highway without seeing another car," Daddy would often brag. That was not the case, however, in Colorado. The cars were lined up one after another, traveling 75 miles per hour, to the horizon and beyond. We passengers paid scant attention to the outside world as we were involved in a thought-provoking discussion regarding the strengths and weaknesses of the highly educational hit movie of the summer, Independence Day. The movie answered the question: Are we alone in the Universe? with a loud no when aliens arrived and began demolishing major cities all over the world. We all gazed out the windshield as we laughed at my sister's comment about the president in the film: "He was so broken up over the

Books are Mass Media Essay

In the aspect of communication, there are many elements and factors commonly considered in the pursuit of achieving effectiveness in this field. Among the different concerns are the two main elements namely the medium to be as the vehicle of the communication and the target audience to which the idea aimed to have an impact upon. Considering these two factors is important to achieve the desired effectiveness in the communication field particularly as required by the significance of the information to be transmitted. Considering the factor of audience population range, the element of medium is considered important as this is directly relative to the effective achievement of the distribution and scope aim of the communication. In the said concern, the role of books as a medium for mass media is commonly debated upon as the nature of this element commonly contradict the definition of mass communication considering its application in the actual scenario. For the book to achieve successfully its communication cycle, it must be written and read by its target population thus, imparting the idea and information contained in its pages. However, in the actual population, books are not always preferred and patronize by the public as resulted from its sales percentages compare thus, making its saturation level in the population awareness to be somewhat insignificant. However, despite of the said nature of the book medium, the approach of book publication is still considered as a form of mass media in terms of its communication influence. In actual view, the publication sale of each book does not generally reflect its influence wherein eventhough a book’s sale is low, the spread of its ideas contained in its pages still expand through its impact on the few readers. Indeed, as part of the circulation and communication cycle of each book, the primary reader is influenced by the book and after which he or she communicates the said idea to others thus, creating the mass population scope of the said book in terms of its communication capability. In addition, books are also effective medium for storing and continuously expanding its influence, as their ideas are effectively preserve within their pages and the readers who are affected by their topics. This influence can be realized in the actual impact of some books that left notable impact on the society in terms of their influence in mass media communication such as the book The Wealth of Nations by Adam Smith, Divine Comedy by Dante Alighieri, Noli me Tangere by Jose Rizal, War and Peace by Leo Tolstoy, The Kite Runner by Khaled Housinni, and others which have influenced large population regardless of their lesser publication sales. In general, the impact of books in terms of mass communication is not only reflected upon its publication sales and economic value but in terms of its influence and effectiveness on enticing the interest and emotion of its mass audience. With this nature and capability, the book medium indeed is considered as a medium for mass communication able to promote ideas and concepts for wide range and scale of human population. Bibliography Hoveyda, Fereydoun (2000). The Hidden Meaning of Mass Communications: Cinema, Books, and Television in the Age of Computers. Praeger Publishers. ISBN-10: 0275969967.

Animal Testing Should Not Be Banned - 864 Words

Animal testing or animal experimentation is the use of non-human animals in experiments. (Merriam) We as humans have been using animals to test products that the reaction is unknown. Even though we might benefit from this testing, the benefit does not justify how we treat animals. Scientist such as, Claude Bernard, known as the father of physiology, have said that â€Å"experiments on animals are entirely conclusive for the toxicology and hygiene of man. The effects of these substances are the same on man as on animals, save for differences in degree†. Scientists and researchers cannot guarantee that the products will react to humans the same way it reacts to animals. A new system needs to be developed in the efforts to test products before the use on humans. Many people don’t see the issues with animal testing, but science has clearly proven that there are many different reasons that animal testing is not necessary and harmful to us as humans. As H. Fergie Woods, M.D., has stated, I have studied the question of [animal testing] for thirty-five years and am convinced that experiments on living animals are leading medicine further and further from the real cure of the patient. I know of no instance of animal experiment that has been necessary for the advancement of medical science; still less do I know of any animal experiment that could conceivably be necessary to save human life. It is not proven that animal testing helps humans, but there are many studies and statisticsShow MoreRelatedShould Animal Testing Be Banned?844 Words   |  3 PagesShould animal testing be banned? Nowadays, a lot of animals has been tested on a range of experiments over the world. You could be supporting animal teasing cruelty without knowing it. Have you ever check if there’s animal testing on the cosmetics before you buy it? Today, a lot of cosmetics has been testing on helpless animals and there are about 1.4 million animals die each year from animal testing ( CatalanoJ, 1994). Most of the experiments that are completed in the laboratories are very cruelRead MoreAnimal Testing Should Be Banned880 Words   |  4 Pagesdepending on animals testing. Therefore, if people talk about laboratories, they should remember animal experiments. Those animals have the right to live, according to people who dislike the idea of doing testing on animals; the other opinion, supports the idea of animal testing as the important part of the source of what has reached medicine of the results and solutions for diseases prevalent in every time and place. Each year huge numbers of animals a re sacrificed for the science all these animals, whetherRead MoreAnimal Testing Should Be Banned776 Words   |  4 PagesAnimal Testing Should be Banned  ¨Over 100 million animals are burned, crippled, poisioned and abused in US labs every year ¨ ( ¨11 Facts About Animal Testing ¨). Imagine if that was someones animal getting tortured in labs just to test things such as beauty products and perfume. Animal testing was first suggested when,  ¨Charles Darwin evolutionary theory in the mid 1850s also served to suggest that animals could serve as effective models to facilitate biological understanding in humans ¨ (Murnaghan)Read MoreAnimal Testing Should Not Be Banned940 Words   |  4 Pages1). Over 100 million animals are burned, crippled, poisoned, and abused in US labs every year. 2). 92% of experimental drugs that are safe and effective in animals fail in human clinical trials. (DoSomething â€Å"11 Facts About Animal Testing†). There are currently no laws combating the testing of cosmetics on animals, but the practice is harmful and must be ended. As evidenced by the statistics above, millions of animals are tortured and murdered in the United States every year for virtually no reasonRead MoreShould Animal Testing Be Banned?1665 Words   |  7 PagesTesting Cosmetics on Animals Companies around the world use animals to test cosmetics. Animals, such as rabbits, guinea pigs, hamsters, rats, and mice, are used to test the effects of chemicals on the eyes and skin. While animal testing is not mandatory, many companies use it. About Cosmetics Animal Testing by the Humane Society International talks about the different options companies have that do not require the cruel use and eventual death of animals. The article also talks about the overallRead MoreAnimal Testing Should Not Be Banned1572 Words   |  7 PagesAnimal Testing Every year, over two hundred million innocent animals are injured or killed in scientific experiments across the world. Of those animals, between seventeen and twenty million are used in the United States alone. It is said that an animal dies in a laboratory every three seconds (Animal Testing 101). Those in favor of animal experimentation say they are taking animals’ lives to save humans. It is not necessary to subject animals to torturous conditions or painful experiments in theRead MoreAnimal Testing Should Not Be Banned1581 Words   |  7 PagesAnimal testing is being used by different organizations all over the world to prevent specific diseases, especially cancer. Americans see animal testing having a harmful effect but it is one of the main reasons why society has most cures for some illnesses. This topic is important because people need to know what goes on during animal testing and why it is very beneficial. Animal testing needs to be used to find all cures. Some ani mals such as chimps/ monkeys have 90% of the same DNA humans haveRead MoreAnimal Testing Should Not Be Banned1721 Words   |  7 Pages † Today, more animals are being used in experiments than ever before: around 100 million in the United States alone† (3). Animal testing is now an international issue, and it is becoming a major story. Currently, animals are often used in medical testing, make-up testing, and other consumer product testing. Animals used in such product testing are often abused and suffer from serious side-effects. Animal testing can be painful for the animals, testing results are usually not even useable forRead MoreAnimal Testing Should Be Banned1364 Words   |  6 Pagesbenefit. Using animals for these experimentations usually does not come to mind. Animals are often abused, suffer, and even die during laboratory testing for the benefits of people to make sure medications, household products, newest procedures, and cosmetics are safe and effective for human use. Humans have benefited from animal testing for years while these animals suffer consequences with no positive outcomes for themselves. Even if a product or procedure is deemed successful, these animals are frequentlyRead MoreAnimal Testing Should Be Banned Essay1632 Words   |  7 Pages Animal Testing Should Be Banned Throughout the decades, animals have been used in medical research to test the safety of cosmetics including makeup, hair products, soaps, perfume, and countless of other products. Animals have also been used to test antibiotics and other medicines to eliminate any potential risks that they could cause to humans. The number of animals worldwide that are used in laboratory experiments yearly exceeds 115 million animals. Unfortunately, only a small percentage of

Volatile Liquidity Dependence Ratio Finance Essay - Free Essay Example

Sample details Pages: 15 Words: 4420 Downloads: 7 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? Banks being very significant financial institutions, operating within the economy and controlling it, have increasingly played a significant role in conditioning the economic factors such as assets and liabilities, which are strategically managed and manipulated for profit and social welfare. Financial sector reforms, which have brought rapid changes in the structure of financial market exposed banks to various risks such as Interest Rate Risk, Liquidity Risk, Credit Risk etc. The most significant element which integrates the markets and the institutions in a financial system is interest rate structure. Don’t waste time! Our writers will create an original "Volatile Liquidity Dependence Ratio Finance Essay" essay for you Create order Thus, interest rates should increasingly be allowed to perform their main function of allocating scarce loanable funds among alternative uses which necessitate the deregulation of interest rates. The various changes in the priorities and strategies that have been imposed on the banks due to the transition in the economy have required evaluation and analysis as beneficial to the banking sector. After deregulation of interest rate in India there was common debate among the bankers as to what will be the impact of this strategic move of Indian banking on the bank performance especially on advances, investments, spread, capital adequacy and earning of banks. Interest rate deregulation have been analysed from this strategic and practical angles in this study to assess how these various measures have affected the banking performance in the post reform period and to analyse the extent interest rate deregulation implemented by the RBI enable the banks to manage various performance parameters . Hence this analytical study of the banking sector in India has been conducted with the following objectives. Main objective To analyze and evaluate the impact of deregulation interest rates on bank performance. Sub Objectives The other objectives of the study are: To review the relevant research and literature on the subject. To identify the impact of deregulation of interest rate in the Spread and Burden of the banks. To evaluate the Interest Rate Risk Management of the banks. To ascertain impact of deregulation of interest rates on asset quality and measures taken by banks to manage credit risk. To analyze and evaluate the impact of deregulation on bank performance by studying FIVE dimensions of CAMEL. The present study was undertaken to know the behavoiur of six selected banks i.e. State Bank of India (SBI), Bank of Baroda (BOB), Punjab National Bank (PNB), ING Vysya bank, The Federal Bank and JK Bank, covering a period of 10 years ranging between 1998 to2008. It was particularly aimed at gaining insight into the impact of deregulation of interest rates on various aspects of banking operations. In this context, CAMEL parameters were analyzed to study influence of deregulation of int erest rates on the behaviour of capital adequacy, asset quality, management soundness, earnings and profitability, liquidity and sensitivity of share prices to market risk, so that bank management could be helped in formulating an effective spread, capital, earning and risk management policy. The findings of the present study are summarized as follows:- Capital Adequacy The total minimum capital requirements for credit, market and operational risks in banks is calculated using definition of regulatory capital as defined in Basel Accord II and risk weighted assets. While Tier II Capital is limited to 100% of Tier I Capital, the total Capital to Risk Weighted Assets must not be lower than 8%. The Risk Weighted Assets are determined by multiplying the capital requirements for market risk and operational risk by 12.5 and adding the resulting figure to the sum of risk weighted assets for Credit Risk. The analysis of Risk Weighted Capital Adequacy Ratio ensures that bank has adequate capital/cushion vis-Ã  -vis to perceived risks for on and off balance sheet exposures. The findings of Capital Adequacy are presented here under:- The Capital Adequacy ratio of all banks under study is more than the requisite standard of 8%. However, the percentage of equity share capital has deflated over the period of study but reserves position has witnessed sharp gr owth for all banks in the post reform period. This indicates that banks are following stringent dividend policy for maintained of risk weighted capital adequacy ratio (CRAR). The mean CRAR has been recorded at 13.10 percent, 12.53 percent, 11.18 percent, 14.25 percent, 10.90 percent and 17.42 percent for SBI, BOB, PNB, ING, Federal Bank and JK Bank respectively. The ratio clearly shows that banks are better placed in terms cushion for taking credit risk as the minimum prescribed ratio for banks in India is 8%. The leverage ratio of the banks have shown declining trend for all banks. This reveals that banks have shown reluctance on dependence on debt capital and have become selective in mobility the deposits became otherwise it is difficult for them to manage credit in post deregulatory period. The ratio of advances to assets is higher in case of private sector banks compared to public sector banks. This is also confirmed by the F-test, which indicated significant difference in this ratio. The ratio, however, reveals that banks have taken more credit risk which does not with commensurate increase in CRAR. The percentage of investment, in government securities is higher for private sector bank as compared within public sector banks. This manifests that private banks are mere concerned with insulation of positive spread and are more concerned within management of capital risks. Asset Quality A bank grants credit to produce profit and is one of the largest on balance sheet items. In the process of granting loans also assume and accept risks. In evaluating risks, banks should assess the likely downside scenarios and their possible impact on the borrowers and their debt serving capacity. Two types of losses are possible in respect of any borrower or borrower class-expected and unexpected losses. Expected losses affect the asset quality because budgeted for and prevision held to offset their adverse effects. However, unexpected losses have more severe impact on banks but are unpredictable and can be cushioned by holding adequate capital. The quality of assets is, therefore, ascertained in terms of loan losses and expected losses. This parameter is important to gauge the strength of the bank in per and post deregulated period. Since the loan portfolio is always interest sensitive and is always affected by interest rate changes, thus study of asset quality was sine-quonon for present study. The Gross NPAs ratio for private sector banks was very high in pre deregulation period compared to post deregulation period starting from 2000-01, when particle deregulation started. Similar picture is not different for public sector banks. The ratio of Gross NPAs has touched to lowest level for all public and private sector banks in 2007-08. This phenomenon reveals that deregulation of rates has been effectively utilized by the bank and has positively influenced the borrowers repayment capacity because of lower and market driven interest rate on loans. The ratio of Net NPSs to Net Advances is depicting the picture of banks that have well been able to predict the expected losses of the credit portfolio and have created required provisions for the same. The ratio has witnessed the same behaviour as was recorded for the Gross NPA ratio in case of both public and private sector banks. This verily indicates that banks have been either able to maintain and impro ve the quality of credit portfolio in post deregulation period of interest rated. The ratio of Net NPAs and Gross NPAs to Total Assets have shown declining trend for both private and public sector banks in post deregulation period compared to pre-deregulation. This further reveals that banks have been able to maintain credit as healthy asset in the total asset portfolio of assets during the deregulation period. It was expected that any action of credit enforcement (recalling the advances made or instituting foreclosure proceeding including legal proceeding) which were taken in hand in post deregulation period and decrease in interest rate on bank credit may severely erode the already thin profit margin on the credit transaction and will put pressure on asset quality. However, after deregulation of interest rates the asset quality of bank have improved to greater extent and have influenced the bank profitability positively, which is revealed by profitability analysis of bank. Management Soundness The management of the companies works for the owners who are the shareholders, why doesnt the management get fired if it doesnt in the shareholders best interest? In theory, the shareholders pick the corporate board of directors and the board in turn picks the management. Unfortunately, in reality the system frequently works the other way around. Therefore, it is necessary to analyse soundness of management and their efficiency while utilization of bank funds. In this context, in present study, efficiency in terms of bank productivity has been analysed. For this purpose three important productivity ratios i.e, Net Income to Number of Employees, Profit per Employee and Business per Employee have been utilized. These ratios are intentionally used because they show how efficiently management has utilized employee for generating healthy income, profit and business in post deregulation period of interest rates, when interest margins have squeezed due to market driven interest rates. The findings of productivity analysis are:- Placing greater confidence in management, it can be said that SBI, BOB, PNB, ING Vysya, Federal Bank and JK bank Net Total Income per Employee has best growth during the post deregulation period of interest rates. The SBI (0.21 %) amongst public sector banks and JK Bank (0.27 %) amongst private sector banks have witnessed phenomenal growth in net income per employee productivity during 2007-08 compared to 0.07 % and 0.07 % for both banks in 1998-99. However, compared to Public Sector Banks under study Private Sector Banks have witnessed better performance in this front. The Profit per Employee has witnessed either stability or minor growth in terms of percentage for all public and private sector banks, which are under study. This means though profit in absolute terms have increased but it has witnessed simultaneous increase in number of employees. Therefore, management efficiency in controlling the wage bill has been dismal in case of b oth public and private sector banks and this situation is also due to thin margin available to banks in case of fund based business after deregulation of interest rates. The business per employee ratio has been very healthy for private sector banks and was recorded between 2% to 4.25% for ING Vysya, 1.90% to 3.82% for Federal Bank and 0.12% to 5.16% for JK Bank in post deregulation period. Similarly, for Public Sector Banks it was witnessed between 1.60% to 3% in case of SBI, 1.66% to 4.00% in case of BOB and 1.42% to 3.31% for PNB during the same period. From this analysis it can be deduced that management of bank have by and large performed nicely while developing business portfolio of the bank. However, it is worth nothing that in spite of growth in business the insulation of better profits was not due to this declining margin during deregulation period. This, therefore, reveals that banks profitability have been affected because of deregulation of interest rates but damage wa s controlled by management to large extent. Earning Analysis In the earning perspective, the focus of analysis is the impact of changes in interest rates on accrual or reported earnings. This is the most used approach to interest rate risk assessment taken by many banks. Variation in earnings is an important focal point for interest rate analysis because reduced earnings or outright losses can threaten the spread insulation and financial stability of an institution by undermining its capital adequacy and by reducing its market confidence. In this context, spread analysis (i.e. difference between interest earnings interest earnings and interest expended has received more attention in banking crises because it directly and easily develop link to change interest rates). In addition, to burden and profitability analysis also focuses on impact of deregulation of interest rate on bank efficiency. The findings of these analyses are outlined here under:- Spread Analysis The ratio of Interest Income to Total Assets of the banks under study has witnessed marginal decline in the post deregulation period. Its mean ratio was recorded at 84.46 percent, 85.13 percent, 83.87 percent, 82.28 percent, 86.10 percent, and 80.40 percent for SBI, BOB, PNB, ING, FB and JK Bank respectively. This reveals that deregulation of interest rate has really tightened screws for higher spread insulation for banks. The ratio of Interest Expenses to Total Income has shown declining trend in post deregulation period starting from 2000-01 for almost all bank under study. The ratio is lower than the international benchmark of 60% (Report; 2005)Â  [1]Â  . This is positive sign of deregulation of interest rates because banks are now free to fix their own interest rates on deposits depending on the market acceptability. The ratio of Interest Expenses to Total Assets has witnessed similar behavoiur as has been marked incase of Interest Expenses to Total Income ratio. Net In terest Margin (i.e. spread) for private Indian banks are normally higher than public sector banks. However, one important revelation of this study speaks that deregulation of interest rate have squeezed the NIM for Indian banks though banks have tried their best to manage spread. The results of spread analysis are corroborating with finding of (Mohan, 2005)Â  [2]Â  . The situation of JK Bank in last year of study shows more impact on spread insulation because it declined compared to FB and ING Vysya. Burden Analysis Due to thin margin available of credit portfolio in post deregulation period, banks in India started located new partners so as to earn income other than the fund based income. The concentration was towards fee based income. If bank is able to cover non interest income from non interest expenditure banks ensure high profitability is least risk taking. The present analysis was done to ascertain the impact of deregulation of interest rate on bank profitability vis-Ã  -vis to burden. The findings of the study are:- The ratio of Non-Interest Income to Total Income has witnessed increasing trend income of both private and public sector banks up to few early years of deregulation period. However, since 2001-02 banks perhaps realized that only way to maintain and increase profitability is put control/check on non interest expenses. The ratio has shown sharp decline for all the banks under study during the period from 2003-04 to 2007-08. This mean bank have become cost conscious in the post deregulatory period. The ratio of Non-Interest Income to Non-interest expenses and ratio of Non-Interest Income to Average Working Funds witnessed surge in the post deregulation period compared to pre deregulation period. Thus banks have concentrated surely on fee based income instead of fund based income during deregulation period. They are of the opinion that during deregulation of interest rates, when interest rate are market driven, only way to maintain and increase profitability is to put check over Burden ratio, which otherwise during regulatory period had taken back seat. This surely is positive out come of deregulation. Profitability Analysis The effect of financial innovation and interest rate deregulation has been to expand banks balance sheets in both quality and size assets. The proportion of Net Profit to Total Income of the selected banks in the Post-Reform Period reveals that the banks have earned a higher rate of return. Profits as a percentage to assets declined in most cases, when balance sheet expanded and as competition put pressure on profitability. Private Sector Banks have responded to the new challenges of competition, as reflected in the increase in the share of these banks in the overall profit of the banking sector. Although bank profitability depends on a number of factors such as asset quality, interests rates and growth, the deregulation of interest-rate ceilings appears to have had only minor effects on profits. The banks profitability whether measured by Return on Assets (ROA) or Return on Equity (ROE). ROA has declined over two years. However, the fall-off appears more directly related to the asset quality problems experienced by a number of large banks than to the accelerated trend towards interest rate deregulation. The public sector banks still mainstay, accounting for nearly three-fourth of assets and income. It is also important to note that public sector banks have responded to the new challenges of competition, as reflected in the increase in the share of these banks in the overall profit of the banking sector. From the position of net loss in the mid-1990s in recent years the share of public sector banks in the profit of the commercial banking system has become broadly commensurate with their share in assets, indicating a board convergence of profitability across various bank groups. This suggests that, with operational flexibility, public sector banks are competing relatively with private sector and foreign banks. Public sector banks managements are now probably more attuned to the market consequences of their activities (Mohan, 2005)Â  [3]Â  . 4. The e ffect of control on burden ratio and spread managed by banks witnessed in the earlier analysis has been evidently reflected in the increased profitability ratio of both public and private sector banks during the post deregulation period of interest rates. Liquidity Banks need liquidity to meet deposit with drawls and to fund loan demand. The variability of loan demand and variability of deposit determine banks liquidity needs. Liquidity is essential in all banks to compensate the expected and unexpected Balance Sheet fluctuations and to provide funds for growth. The price of liquidity is a function of market conditions and market perceptions of the risk, both interest rate and credit risk reflected in the banks balance sheet and off balance sheet activities. If liquidity needs are not taken care off, banks may be forced to restructure or acquire additional liabilities under market conditions. It is believed that under deregulation interest rate this problem is evident to arise for banks, therefore present analysis was made to study liquidity in pre and post deregulation period. The findings of this analysis are:- The ratio liquid assets to total assets show the proportion of liquid assets to total assets. It indicates the overall liquidity position of the bank. The ratio indicates a negative trend in case of all the selected banks. On an average, the ratio for banks is recorded at 19.07 percent, 17.19 percent, 13.77 percent, 15.12 percent, 11.72 percent, and 15.94 percent for SBI, BOB, PNB, ING, FB and JK Bank respectively. The ratio depicts that the liquidity position of Public Sector Banks is sound as compared to Private Sector Banks. Further the liquidity in pre-deregulation is better than liquidity in post-deregulation period. This indicates that pressure put on liquidity position of banks. Private Sector Banks has out performed Public Sector Banks as the ratio of Liquid Assets to Total Deposits is higher for private sector banks compared to public sector banks. However, negative trend is also visualized in case of this ratio. The results reveal significant difference the liquidity positions of the banks only in terms of one liquidity ratio (i.e. Inter bank deposits/Total deposits). The overall conclusions of this analysis shows that banks have managed the liquidity properly during post deregulation period and have maintained ALM in terms liquidity gaps and duration. Volatile Liquidity Dependence Ratio Excess of Liquid Funds or Deficiency of Liquid Funds is not favourable for the banks as excess and Deficit Liquidity Crisis will adversely affect the profitability of banks. In order to avoid the liquidity crises, the RBI has prescribed prudential norms that the negative mismatch in 1 14 and 15 28 days time bucket should not exceed 20 percent of the total outflow. As a part of ALM strategy, Liquidity is traced through maturity or cash flow mismatches in the banks. Selected banks are not facing any liquidity crunch by the end of the period of the study and the banks were able to reduce there bad credit during the Reform-Phase. As the SLR and CRR requirements prescribed by the RBI gradually got reduced during the Post-Reform Phase, the banks were able to lend a high portion of their deposits for lending purpose, but CD Ratio is below 60 percent shows the reluctance of the banks to deploy funds for advances liberally. Asset Liability Management The business of banking involves the identifying, measuring, accepting and managing the risk, the heart of banks financial management is risk management and one of the most important risk management functions in banking is Asset Liability Management (ALM). Traditionally, administered interest rates were used to price the assets and liabilities of banks. However in the deregulated environment, competition has narrowed the spreads of banks and has affected share price of banks in stock exchange with profit becoming a key factor, it has now become imperative for a bank to move away from partial asset management, credit and non-performing asset and liability management towards an integrated balance sheet management where all components of balance sheet i.e. Working funds, Total assets, Liabilities and its difference. Other Findings Banks are reluctant to expand lending activities have deployed more funds in investment in deregulation Period. Even though the interest expense has increased and interest income decreased, by reducing the non-interest expenses and by increasing the non-interest income banks could reduce the proportion of total expenses to total income during the post deregulated period. The profitability performance of all the banks irrespective of sector has increased in the Post-Reform Period. The shift in policy from social-oriented banking to profit-oriented banking in the post deregulation period has been objective of the banks. Banks have been able to reduce the Burden but have not succeeded in increasing the Spread as a result of deregulated interest rate in the Post-Reform Period. Thus with a reduction in Burden, the decline in the spread is compensated and banks could improve the profitability in the Post-Reform Period. In the Post-Reform Period banks are not facing any shorta ge of liquidity. But banks are facing the Embedded Option Risk which will affect the liquidity of the banks. Flushed with funds as a result of reduction in SLR and CRR, banks are forced to deploy the huge funds without proper risk assessment which have resulted increase in NPA marginally. Capital Adequacy Ratio (CRAR) acts as a good barometer to check Credit Risk as it prevents deploying funds in risky advances. The banks have developed a tendency to invest huge amount in safe investments like Government and Approved Securities and this reduce credit and interest rate risk. Suggestions Banks must have an adequate internal control over their interest rate risk management process in deregulatory regime. The main element in this context would be regular independent reviews and evaluations of the effectiveness of the system and where necessary ensuring that appropriate revisions or enhancements to internal control are made. The outcome of such an exercise should be made available to the relevant supervisory authorities. Proper watch should be exercised by supervisory authorities on interest rate risk. In this connection, an appropriate account of the range of maturities and currencies in each banks portfolio including off-balance sheet items, as well as relevant factors such as distinction between trading and non-trading activities. Capital of the banks should be in commensurate with the level of interest rate risk, credit risk and operational risks. In this context, banks should have separate and professionally trained department who will ascertain capital nee ds on regular basis which can act as real cushion for adverse movements of interest rate fluctuations. Banks should identify and manage interest rate sensitivity and credit risk in all their products and activities. They should ensure that the risks of all new services and activities are subject to adequate risk management procedures and control before their introduction. Banks should ensure the credit portfolio is properly managed and the credit exposures are within levels consistent with prudential standards. This needs proper strategy so that asset quality of maintained with minimal possible limit. Supervisory authorities should develop effective system in place to identify, measure maintain and control credit risk as a part of an overall approach to asset quality management. Potential future changes in economic conditions should be considered while assessing credit, credit portfolios and credit quality by using stress testing. The board of directors and top manage ment should establish proper and scientific management over right and governance over the interest rate movements associated with various interest sensitive assets and liabilities including the establishment of specific accountability, policies and continues to manage positive interest spread insulation. Frequent changes in management at top level, change in key policies and the lack of succession planning need to be viewed with suspicion. Management of credit quality and net interest margin is key to integral the health of any banking institution. A consistent year to year growth in profitability overview should be done to provide an acceptable return to shareholders and retain resources to find future growth. Return on average assets, which measures a banks growth and decline in earnings in comparison with its balance sheet expansion and contraction should be the permanent excessive of banks. Net interest margin, difference between interest earned and interest paid and burden ratios should used to maintain positive spread insulation and burden of other expenses on interest spread. The degree of reliance upon interest income compared with fees earned, heavy dependence on certain sectors and the sustainability of income stream are relevant factor which every bank should consider. The banks management should approve the strategy and significant policies to execute the strategy and significant policies to execute liquidity management effectively. Regular review of limit on the size of liquidity position over particular time horizon should be made. For liquidity management banks should seriously review and analyse funding risk, time risk, call risk, mismatch risk, currency risk and embedded risk. In this context, banks may develop a back up liquidity strategy for all currencies. Sensitivity of the variation of earnings, asset quality and capital adequacy due to interest margin a change of the market-to-market value of assets and liabilitie s should be analysed. Further, underlying random parameter that generates thin variation shall be properly evaluated and analysed. For this purpose technique like VaR, CAR, Variance analysis and potential loan analysis may be used. Scope for Further Research Interest rate deregulation in banking is an on going process that is linked with an evolving strategy at one end and the issues of practical banking on the other. Hence, it requires a continuous assessment and evaluation with regard to the banking performance. This significant aspect of interest rates makes the continuous evaluation and research in this area very vital and necessary for functioning of the banking sector in addressing the challenges of today as well as tomorrow. Further, impact of deregulation of interest rates requires analysis parameter wise and keeping other parameters constant. Therefore, it requires in-depth analysis of deregulation of interest rate vis-Ã  -vis to each parameter.

Greece Greek Financial Crisis - 1838 Words

On January 1st 1981 Greece joined the European Communities ushering in a period of sustained growth. The countries widespread investments on infrastructure coupled with funds from the European Union led to a sharp increase in revenue from tourism and the service sector. This helped the country reach historical highs in their standard of living. By 2001 Greece had adopted the Euro and in the proceeding 7 years the GDP per capita went from $12,400 in 2001 to $31,700 in 2008, an increase of 156%. The Greek government was encouraged by the European Central Bank and other private banking institutions to undertake loans to fund foreign infrastructure projects like those related to the Olympic Games of 2004. When the financial crisis of†¦show more content†¦(Pavlakis, 2013) With so much to lose we have seen European â€Å"bailout† agreements that mostly front the Greek government more money coupled with crippling austerity in an effort to â€Å"rebuild† the economy. Austerity discourages growth as it cuts the spending of the government who is by far the biggest spender in the economy. (Kentikelenis et al., 2011) The effects of austerity can be devastating, but the true effects are often hidden beneath the messages we get from mainstream news sources. The stereotype of the Greek people as lazy and tax evading has desensitized the public and has made austerity seem like more of a sensible option. The media messages have made strict austerity measures seem justified and in effect have galvanized the Greek people. Greece is no different than other countries who have been forced to accept IMF loans, the vast majority of these funds end up flowing back into the multinational banks who made the risky loans. The Troika has made demands of increased privatization of national assets as collateral and the destruction of labor rights. 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Is the Merchant of Venice Suitable for a Modern Audience Essay Example For Students

Is the Merchant of Venice Suitable for a Modern Audience Essay William Shakespeare is one of the most famous writers of our time. He has written plays that are known all around the world and are studied as part of our education. What he wrote in the 16th Century is still as relevant today as it was then, which is why many people throughout the world admire and perform his work. The plays he has written have varied from romances (Romeo Juliet), to tragedies (MacBeth), and comedies (As you like it). The Merchant of Venice is a about a merchant, Antonio, who is asked for a loan by his dearest friend, Bassiano. Bassiano needs the money for a voyage to Belmont, where he hopes to win over the wealthy Portia. Antonio has to borrow money from Shylock. They agree on a bond that there will be no interest, but if it is not paid within three months Shylock is entitled to a pound of Antonios flesh. The way that the whole plot evolved around money is very clever. It began with Bassiano wanting to borrow money from Antonio because he wanted to use the money to win the hand of Portia. Antonios friendship for Bassiano leads him into debt with a moneylender. When Jessica eloped with Lorenzo she took Shylocks money and jewels. Shylock is angrier at her stealing his jewels than her running away. I would my daughter dead at my foot and the jewels in her ear! Would she were hearsed at my foot, and the jewels in her coffin! Antonio is a Christian, he puts friendship above all and doesnt think twice about the conditions of the loan. Bassiano assures him that he will pay him back; In my schooldays I lost my shaft, I shot his fellow of the selfsame flight. The selfsame way with more advised watch to find the other forth. What he is saying here is if he loses one arrow, it is wise to fire another and see the flight path that it took; by this hell be able to retrieve both arrows. By saying this he is referring to his money. Even though Antonio was not paid in time to settle the loan that meant that shylock could have his pound of flesh, Antonio did not condemn Bassiano. Portia has to choose a man by presenting them with 3 caskets, gold, silver, and lead. Her father left the three caskets. The gold casket declares, Who chooseth me shall gain what many men desire. The silver casket, which declares who chooseth me shall get as much as he deserves. The lead casket declares, He who chooseth me must hazard all he hath The lead casket had the picture of Portia in it, indicating that the person that chooses it is the right one for her. Shylock is a Jew, he is a moneylender. He has no respect for Christians because of the anti-Semitic attitudes that were wide spread at that time. Shakespeare uses religious prejudice as background to decides who is the `goodie` and the `baddy` in the play. When Shylock comes onto the stage he is usually greeted by `boos`, this adds to the atmosphere at the theatre and keeps the audience more involved in the play. In the script Shakespeare made Shylocks character appear selfish. When Antonio couldnt pay the debt, any other merchant probably would have extended the deadline but not Shylock. He resented Antonio because he lent money to his friends with no interest. This also reduced Shylocks income and for this reason he wanted revenge against Antonio There are strong themes of racism in the play. .udc82c691ac454e0226b1144c3fa65457 , .udc82c691ac454e0226b1144c3fa65457 .postImageUrl , .udc82c691ac454e0226b1144c3fa65457 .centered-text-area { min-height: 80px; position: relative; } .udc82c691ac454e0226b1144c3fa65457 , .udc82c691ac454e0226b1144c3fa65457:hover , .udc82c691ac454e0226b1144c3fa65457:visited , .udc82c691ac454e0226b1144c3fa65457:active { border:0!important; } .udc82c691ac454e0226b1144c3fa65457 .clearfix:after { content: ""; display: table; clear: both; } .udc82c691ac454e0226b1144c3fa65457 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .udc82c691ac454e0226b1144c3fa65457:active , .udc82c691ac454e0226b1144c3fa65457:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .udc82c691ac454e0226b1144c3fa65457 .centered-text-area { width: 100%; position: relative ; } .udc82c691ac454e0226b1144c3fa65457 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .udc82c691ac454e0226b1144c3fa65457 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .udc82c691ac454e0226b1144c3fa65457 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .udc82c691ac454e0226b1144c3fa65457:hover .ctaButton { background-color: #34495E!important; } .udc82c691ac454e0226b1144c3fa65457 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .udc82c691ac454e0226b1144c3fa65457 .udc82c691ac454e0226b1144c3fa65457-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .udc82c691ac454e0226b1144c3fa65457:after { content: ""; display: block; clear: both; } READ: The Dramatic Significance Essay PaperBecause of this some think that it is inappropriate to be taught in schools. In the play Shylock stands out more than any other character, he is the villain of the piece. Racism against Jews was very strong in those days, which influenced the way the play was written. Unfortunately racism is as alive today as it was in the Elizabethan times, although nowadays it is not acceptable and there are laws to protect people who are of ethnic origins. Although Christians despised Jews Shylock also hated the Christians as shown in his first speech against Antonio I hate him for he is a Christian This shows the lack of tolerance that wouldnt be accepted nowadays. Shylocks daughter Jessica elopes with Lorenzo who is a Christian. Shylock is furious and very sad at this because marrying out of the faith was a dreadful thing to do. Although Jessica was unhappy at home their relationship in the play is emphasised by them singing a Jewish song together before she elopes. Despite the strong ties of religion and duty to a father Jessica elopes with Lorenzo and converts to Christianity. This is a big step for her, and must have taken some thought from her to do this. Nowadays certain strict religions e. . Muslim, orthodox Jews still forbid marrying out of their faith. Jessica would probably suffer the same fate today as she did then which was never to see her family again. The end of the play was interesting, because after seeing theatre and videotapes of performance I prefer the theatre production in which Jessica was left humming in the spot light the Jewish song she sang with her father, this meant that she did still have some feelings for him. The Merchant of Venice was set as a comedy but when reading it I didnt find it funny, I think this is because I didnt understand the humour. When we read through the play at school I found it long and tedious, but watching the play at the theatre helped me to understand the subtleties of the humour. When I watched the play I found the actors/actresses enthusiasm brought the script to life and I understood and laughed more at the humour, which made it more interesting and enjoyable. When reading the play, I didnt think it was one of Shakespeares finest plays but when I went to the theatre it was a full house. I think that by adding comedy to the play makes it livelier. The merchant of Venice shows a modern audience that the themes in the play are as relative today as it was then. How love can or cannot be mistaken, how greed motivates peoples actions, how true friendship is worth more than money and how racism affects society. Although it was set about 400 years ago, it shows how little the differences in society and religion have changed. I think that the Merchant of Venice portrays the problems generated by greed, racism and revenge. I also think that because of the amount of racism in it, it could influence the younger audience.