Public bank management Essay Example for Free

Public bank management Essay 1.Introductions The model of the Five Competitive Forces was developed by Michael E. Porter that becomes an important tool for analysing an organizations industry structure instrategic processes. This model is applicable to the banking industry. Public Bank do compete with the other financial institution in Malaysia, however they also must cooperate with one another in many respects. There is an underlying problem which is the banks in Malaysia are so similar that there is essentially nothing one of them can do that the others cannot easily duplicate 2. Five Forces Analysis a. Threats of new entrants Malaysia has not put a barrier to entry for any financial institution manly banks in Malaysia, thus making it easy for any financial institution to penetrate into the industry. b. Bargaining power of suppliers a bank has three suppliers of its product, money: 1. Its depositors has no bargaining power whatever in reality. If they make time deposits the bank will set the price or interest rate it will pay. 2. The credit market the credit market as a source of supply of the raw material, money, is open to all at all time if they are qualified participants. The source of supply can be argued to be infinite. 3. The central bank The Central bank is effectively the resource of last resort. Apparently, at least for the moment, it will continue to supply liquidity to the banking system in virtually unlimited quantities at very reasonable cost. c. Bargaining power of buyers In the banking industry, customer have has very limited bargaining power. However the customers may option in changing to other banks that they think is offering a better offer than Public Bank. c. Threat of substitute product For the most part there is no real threat of substitute products in the banking industry. However there probably will be continues evolution of  products from paper to electronic in coming years. This is an area of potential competition for whomever banks that choose to use it in their services. d. Rivalry among competitors Generally all banks offer somewhat the same products and services to their customers, thus there is not much differentiation between Public Banks and the other competitors. This is making the competition much higher. Public Bank is actually ranked as the top banks earners in Malaysia in 2009 alongside with Maybank, Bumiputra Commerce, RHB Capital and Hong Leong Bank. 3. Table 1: Method used to identify opportunity and threat for Public Bank using external environment factors and industrial environment factors.(Factors under industry environment are derived from Porters Five Forces). 4. Opportunities 1. Economic growth Malaysia had definitely have been more economically stable and improving, thus financial institution such as Public Bank are needed to aid the overall development of the country. 2. Government policy Encouraging borrowings, loans, investment and consumption demand. 3. Awards and accolades Through recognition, Public Bank can project a positive image to their customers 4. Market share Public Bank has the highest market share for the private sector unit trust business, thus having a larger customer base. 5.  Low switching cost Nowadays it is easy for any customer to switch to other banks with just a click away, making the switching cost to be faster and cheaper, making it easy for the customers to switch to Public Bank. 5. Threats 1. Substitute product/service are available There is a potential competition to whomever banks that choose to upgrade their product and services to cater to their customers need. Maybank for example provide a customer friendly interface through their website www.maybank2u.com, and it became the most visited website in Malaysia. 2.Substitute performance Maybank, Bumiputra Commerce, RHB Capital and Hong Leong Bank are Public Bank competitors and each is recognized for their performance. This will make the competition even higher. 3. Customer switching cost Other than being an opportunity, switching cost can also be a threat for Public Bank as the customers can also easily switch to other financial institution. 4. Government legal barriers There are no barriers that the government put for any legal financial institution to enter in the industry, making any new entrants penetrate into the market share easily. 5. Exit barriers High exit barriers in the industry are making the competition between Public Bank and the other competitors are even higher. 6. Conclusion Porter Five Forces Model are used to identify how the forces affect the attractiveness and profitability of Public Bank, and through this forces, the factors that influence these forces are used in the table 1, to identify Public Bank opportunities and threats. By identifying Public Banks industry environment, the company can improve and sustain their product and services for their customer, ultimately improving their performance.

Japanese Dining Etiquette Essay Example for Free

Japanese Dining Etiquette Essay Remembering your correct manners is very important in Japan, especially concerning the area of dining etiquettes. This applies especially to foreigners, who should try to remember at least the most basic rules†¦ In Japanese meals, it is customary to say ‘itadakimasu’ (‘I gratefully receive’) before your meal, and ‘gochisama deshita’ (‘thank you for the meal’) after you have finished. These traditional phrases are to show your appreciation for the meal, especially when someone cooks for you. The best way to start your meal is with a sip of soup. Then you should eat a little bit of each dish, in a ‘rotation’, until you finish all the dishes at about the same time. Do NOT complete one dish of food before moving onto the next. Remember that if you are eating from communal dishes, it is considered an important etiquette to pick up the food using the opposite end of your chopsticks, or serving chopsticks if any are provided. Do not start drinking until everyone at the table is served, and do not pour any drinks for yourself. This should only be done by others, and naturally, it is also your responsibility to periodically check your friends’ cups and fill them up if they are empty, too. NEVER stick chopsticks into rice standing up, as this is how rice is offered to the dead. If you haven’t already heard, it is perfectly acceptable to slurp your noodles in Japan, as people say it tastes better, and it also shows you are enjoying your meal. Remember that it is considered very rude to burp, blow your nose at the table, and talk about unappetizing topics. Lastly, remember to finish every little grain of rice in your bowl or plate, as rice is considered very precious. Also this shows the chef you appreciate his/her food very much. It is also considered polite to return all plates and dishes back to their original positions, and to place chopsticks back in their paper slips or holders. Bibliography http://www.japan-guide.com/e/e2005.html http://www.suite101.com/content/eating-japanese-dos-and-donts-a31496 http://www.japanesefood101.com/index.php/category/dining-etiquette/.

The Thesis And Statement Of The Problem Finance Essay

The Thesis And Statement Of The Problem Finance Essay INTRODUCTION OF THE THESIS STATEMENT OF THE PROBLEM Introduction: This thesis consists of a collection of self-contained research papers within the part of credit risk and securitization. Still if they differ in focus and faculty, they have in universal that I have designed at writing thesis which has important in real-world with a helpful and relevant participation in my thesis of credit risk and securitization. These contributions are either participation to strategy discussions, new opinions and new angles to a continuing debate, accepted practices with the help of study or cleanly development of fresh models. My thesis will be helpful for those companies which really face credit risk and do not have any model to control it. In the beginning of the writing thesis I faced a lot of problems in managing of data, but with the passage of time activities of research provided great knowledge about credit risk and securitization. This thesis will be helpful for me in future time, and it has a great importance for financial organizations. I was thinking, on basis of research on this topic, it is helpful for my job in these good organizations. I can give better performance on this job because it is my favorite area and I am specialist in it. A brief zoology of risks I view the risks faced by financial organizations as falling mainly into the following maximum collections: Market risk-the risk of sudden changes in prices or rates. Credit risk-the risk of changes in value related with sudden changes in credit quality. Liquidity risk-the risk that the costs of adjusting financial positions will boost significantly or that a firm will lose access to financing. Operational risk-the risk of fraud, systems failures, trading errors, and many other inside managerial risks. Systemic risk-the risk of stop working in open market or series of result default. Definitions of Credit risk Credit risk is a possibility that counterparty cannot perform the fixed obligation, including a possibility that the counterpartys credit risk will be reduced, which affect earnings and capital may support of financial organizations. Credit risk is very important as it involve credit department, which is a most important operation of financial organizations, both credits that are assets and contingent liabilities of the financial organizations. Credit risk is the risk of loss due to a counterparty defaulting on contract, or furthers normally the risk of loss suitable to some credit event. By tradition this applied to bonds where debt holders were worried that the counterparty to whom theyve made a loan might fail to pay on a payment (interest or original amount). Credit risk start from the possible that an obligor is either unwilling to achieve on a commitment or its capability to achieve such obligation is damaged resulting in financial loss to the bank. Credit risk is the up to date or future risk to earnings and capital happening from an obligors breakdown to meet up the conditions of any deal with the organizations or if an obligor otherwise not succeed to perform as contracted. The biggest source of credit risk is loans. However, credit risk exists all over the additional activities of the organizations equally on and off the balance sheet. In short, all the credit risks definitions provide same level of conclusion that if credit risk is greater than inspective so organizations will be suffering financial loss in balance sheet. Credit Risk: Financial organizations and financiers face several types of risk. One of the major risks is credit risk. Over the past decade, credit risk was a most important problem existing in the financial organizations. Credit risk has been one of the most active areas of recent financial research. Credit risk consists of two components: default risk and spread risk. Default risk defines as any non-compliance with the exact arrangement of a deal and spread risk defines as decline in market value of the deal/ tool due to change in the credit quality of the debtor/ counterparty. Credit Risk Models have assumed valuable because they give the judgment creator with on the way or awareness that would not otherwise be with pleasure available or that could be marshaled at too expensive cost. In business, almost all organizations carry some credit risk, because most organizations do not demand up-front cash payment for all products delivered and services rendered. Instead, most organizations distribute the product or service, and then bill the customer, often specifying net 30 days payment, in which payment is supposed to be complete on the 30th day after distribute. Credit risk is carried for the period of that time. In a market where margins are fast failing and the demands to lower pricing are implacable, models give their clients a competitive edge. The credit risk models are planned to aid banks in measuring, aggregating and managing risk across environmental and product lines. The results of these models also play more and more significant roles in banks risk administration and outcome measurement methods, client profitability analysis, risk-based pricing, active collection management and capital makeup decisions. Credit risk modeling may outcome in improved internal risk management and may have the possible to be used in the decision-making oversight of financial organizations. Credit risk analysis (finance risk analysis, loan default risk analysis) and credit risk management is essential to financial organizations which give credit to businesses and individuals. Credit can arise for different reasons: motor vehicle purchase finances bank mortgages (or home loans), credit card purchases, installment purchases, and so on. Credit loans and finances have risk of being defaulted. To understand risk levels of credit users, credit contributors normally collect huge amount of information on borrowers. Statistical predictive analytic techniques can be used to analyze or to determine risk levels involved in credits, finances, and loans, i.e., default risk levels. (Internal) credit score is a numerical rating of credit loans. It measures the level of risk of being defaulted. The level of default risk can be best predicted with analytical modeling. Credit scores can be measured in term of default probability or comparative geometric ratings. Managing credit risk is valuable for any organizations, and important resources are faithful to the task by large financial organizations with many customers. For large financial organizations, there may even be a credit risk department whose job it is to assess the financial health of their customers, and expand credit (or not) accordingly. For example, a distributor selling its products to a concerned vendor may challenge to minimize credit risk by reduction payment terms to net 15 days, or by actually selling less product on credit to the vendor, or even cutting off credit totally, and difficult payment in advance. These policies will possibly impact the distributors would-be sales, and basis smooth relationship with the vendor, but the distributor will end up better off if the vendor is delayed paying its bills, or, especially, if it failure to pay and say publicly bankruptcy. Definitions of Securitization Securitization a process whereby any Special Purpose Vehicle raises finances by issue of Term Finance Certificates or any other tools with the authorization of the relative authority of the country, for example, Pakistan commission (SECP) is authorization of the process for such purpose and uses such finances by making payment to the Originator and through such process obtains the title, property or right in the receivables or other assets in the form of actionable claims. There are lots of ways to explain securitization but in core, it is the financing or re-financing of earnings yielding assets by packaging them into a trade able form through an issue of government securities or further securities. There are three major kinds of securitization: true sale, synthetic and whole business (the final largely used in the England and, to a smaller size, continental Europe). In a true sale securitization, a organization sells assets to a special purpose vehicle which finances the purchase by issuing government securities to the capital markets. In a synthetic securitization, the organization does not sell any assets, but removes the risk of loss linked with certain of its assets to a Special purpose vehicle or a bank organization against payment by such of a premium or fee to the Special purpose vehicle. Whole business securitization is basically a secured loan granted by a Special purpose vehicle to the relevant organization. To contribution the loan, the Special purpose vehicle uses profits of government securities issued into the capital markets whereby the organization grants security over most of its assets in favor of the government securities holders. Since it is important for the whole work out to be a case of transfer of receivables by the originator, not a borrowing on the security of the receivables, there is a legal transfer of the receivables to a separate entity. In legal parlance, transfer of receivables is called assignment of receivables. It is also necessary to ensure that the transfer of receivables is respected by the legal system as a genuine transfer, and not as mere eyewash where the reality is only a mode of borrowing. In other words, the transfer of receivables has to be a true sale of the receivables, and not merely a financing against the security of the receivables. Securitization: Securitization is the procedure of financing the cost of originating or carrying economic assets. Those economic assets include responsibilities of clients originated by financial organizations or such as mortgage loans credit card receivables, student loans and student loans, trade receivables, and corporate bonds and loans. Financing arises during the issuance of asset-backed securities. In an asset-backed securities securitization, financial assets which are naturally illiquid, but exchange into cash in accordance with their conditions within a definite time. Financial assets are pooled and converted into asset-backed securities (which are then typically offered and sold in the capital markets). Mortgage backed securitizations and asset backed securitizations, or more usually, the securitization of economic assets, securitization is a form of structured finance firstly developed in the early 1970s in mortgage backed securitization format. It full-grown in the late 1970s in both mo rtgage backed securitizations and asset-backed securitizations formats. In current years, it has reach to Europe, Latin America and Southeast Asia (mainly Japan, India). In Pakistan market of securitization growing in recent year because international body of securitization improved the regulations according to Islamic structure for Muslim countries and these regulations match with international securitization transaction. Pakistan play lead role in Islamic securitization all over the Muslim countries. The local controllers have usually encouraged searching and introducing multiple asset-backed financing formations at large. While the whole banking and non-banking financial areas are now facing troubling due to worldwide financial disorder, pointed increase can be seen on the heel of Islamic securitization during contribution by private and commercial sectors. In its simplest form a Securitization require (1) the sale of a huge pool of Receivables by an person (Originator) that makes such Receivable in the line of its business to a bankruptcy-remote, special purpose entity in a way that meet the requirements as a true sale and is planned to reach definite results for accounting purposes, as well as caring the Receivables from the claims of creditors of the person (Originator), and (2) the issuance and sale by the special purpose entity, in either a private assignment or public offering, of obligation securities that are afterward fulfilled from the proceeds of and protected by the Receivables. When the Securitization is stopped up, finances run from the buyers of the Securities to the Issuer and from the Issuer to the inventor (Originator). Statement of the problem This research aim is to take action and analyze the following questions and interviews have been performing from the companies officer to receive information accordingly. What is method for control the credit risk in organizations? The purpose of Securitization in the Corporate Sector? The features of Securities to make its attractiveness? Why the investors are interested to invest in Asset-Backed Securities? Why Islamic securitization important in Muslim world? Does securitization reduce credit risk for the financial organizations? How the Asset-backed Securities have minimized credit risk for the financial organizations? To understand the role of banks and credit rating agencies in the Securitization. Determine the working of factoring for reduce the credit risk and define the benefit of factoring? What are the future prospects of Asset Backed Securitization in Pakistan and all over world? Define securitization costs and expense? How credit  scoring individual customer? How can minimize credit risk through securitization? What is the method of managing the credit risk and how to improve credit risk management? importance of the study The information technology and artificial results have been powerful the businesses of the worldwide economies. To deal with the different risks linked with the businesses, the businessmen have to come up with modern solutions and separate credit risk department and securitizations are one of them. All over the world companies face different type of risk in businesses including marketing risk, operational risk and credit risk. To deal with these risks and improved the financial position of the organization and increase the annual profit of the share holders (owners), they have to pick the positive modern solutions. If mangers of the organizations want to minimize the credit risk so securitization is one of the techniques picked by the organization. In the way, organizations achieved target profits and financial position without any loss of the operating, financial and market of the organization. Study of the credit risk and securitization is allows development new models and techniqu es in the capital market which ultimately create new and more investment chance in the capital market which provide large number of profit to the financial organizations. Study of the credit risk shows, at liberty Asia appeasing Credit Risk Management: 2006-2011 spend estimate and Analysis, local investments in credit risk functions for three purposeful systems, defaults chance judgment, credit collection management systems, and worldwide limits management systems are estimated to compound at a collection percentage of 16.6 per cent annually to US$1.74 billion by 2011. If organizations want to reduce credit risk so growth for successful performance of credit risk, financial organizations need to improve their IT functions for information collection and the interior rating process, categorize proper greatest practices and building ability. Study of credit risk and securitization have very important for any organizations because credit risk accounting for at least two-thirds of their on the whole risk, the financial organizations have the leading holder for credit risk functions. According to research of credit risk controller that if organizations want to reduce credit risk so buildup credit risk departments in the organizations for control the credit risk independence and working of credit risk department that manage the securitization procedures and improved the internal rating process and fairing collection the data about customer and country political issue. Political issue plays a lead role for unsystematic credit risk. In addition, these studies evaluate the opportunity where this idea of securitization can be effectively applied. The study not only points the current companies who have already accepted the securitization but also useful for the potential companies. Delimitation of the study This research was performed within the following limitations: Only financial organizations in the first market level of the Lahore and Karachi Stock Exchange was included in this research. Joint finances were also excluded. All the steps involved in this research process were completed within a two month period (December to February 2010-2011). This place a limit on the overall level of the study. The Lahore and Karachi Stock Exchange is relatively new in the field of credit risk and securitization. This impacts the amount of information available for me. CHAPTER TWO REVIEW OF LITERATURE AND STUDIES Background Credit risk and securitization is not new team for any businessman in the capital market. A lot of the articles, books, research papers and regulations are available in internet and library. I get help from a lot of articles and books for writing a thesis of credit risk and securitization. My work is distribution into two elements: selecting articles and summarizing results. I have read 135 plus articles, books, and research papers of different authors of all over the world for clear understanding of credit risk and securitizations. My literature search starts with electronic full-text databases and Economic Papers, using searching term credit risk and securitization in the title or keywords. Literature Credit risk occurs from the option that the issuer of an asset back securitization, generally a special purpose vehicle, may default on its liabilities. Since the special purpose vehicle is usually controlled to have no assets or business other than holding the securitized assets, the main focal point is on the cash flow from the assets themselves. The most significant option to be considered is default by the underlying borrowers, such as the car owners in the case of automobile loan securitization. While a small but expected loan loss ratio is controllable, the rating agencies must deeply analyze the difference in default and crimes rates and calculates any factors that might activate a growth in defaults. The growth of a possible control of credit risk and securitization market is very dependent upon the authorized and regulatory framework that is position provides sufficient security for investors. The financial organizations, investors, banks and development companies were attractive to perform the securitization for control credit risk. It is therefore, different agreement concerning the current and future receivables of the development companies have been performed through asset backed securitization in different business sectors of the country i.e. leasing sector, oil sector, construction areas, telecom sector, and public sector. Credit risk identification Valuable credit risk identification starts with individual credit measurement. Financial organizations should rate credit value of individual customer commonly. Some financial organizations may concern relative rating. Some rate by kind of credits or transactions. Some apply both relative rating and rating by kind of credits or transactions. Risk rating should also be practical to off-balance sheet transactions. The rating process should be transmission commonly so that adjusts in credit quality will be agreed in time. Such will help the management in revising the policy as well as closely monitor the non-performing loans within a suitable time period. In addition to risk rating, there should be a assessment and analysis of every section and the overall selection to ensure the accepted risk rating. Development analysis, change in risk level and weighted average risk level should be incorporated with other information such as past due trend, credit growth, and the extent of policy exception to help in the analysis of asset quality and credit risk. The principle of valuable risk management is identifying all possible credit risks in the products and transactions through a detailed review of credit risk element in the products and transactions. New products that can incur risk should be given much interest in the new product planning process. Close and careful monitoring should be carried out to ensure that the risks are identified and appropriately managed. Adequate guidelines and control procedures should be specified before the new products and transactions are projected or introduced. Moreover, the new products and transactions should be approved by the board of directors or other suitable committee. Credit risk measurement Financial organizations should have a correct and dependable system to measure credit risk of individual customer in accord with the quality, refund ability and kind of credits or businesses, equally on- and off-balance sheet credit transactions and bank account transactions. This is so that level of risk can be correctly measured, monitored and controlled. To have valuable risk measurement, financial organization should carry on as follows: Formulate a policy and strategy in risk measurement and the impact on financial organizations. Formulate risk measurement processess which is working in high level management which is relative to measuring credit risk. Clear customer segmentation and regular assessment of credit application. Assess the current level of loan loss provisioning against credit risk. That is, even when financial organizations have high level of risk; sufficient amount of provisioning can help reduce against the overall credit risk. Financial organizations should use suitable ratios to test whether the level of loan loss provisioning is practical. Ratio analysis will make known the trend of relationship between loan loss provision with different factors such as non-performing assets and normal loans pass due loans, and stop increased debts, credits and contingent liabilities. Credit risk Monitoring and controlling For reducing credit risk on account of such off balance sheet contacts, financial organizations may accept a multiplicity of measures some of which are showed below: Financial organization must make sure that the security, which is obtainable to the funded lines, also covers the latter of credit lines and the guarantee facilities. On some events, it will be suitable to take a charge over the fixed assets as well, particularly in the case of long-term guarantees. In the case of guarantees covering agreement, financial organization must make sure that the regulars have the necessary technical skills and experience to perform the agreements. The value of the agreements must be definite on a case-by-case basis, and break up limits should be set up for every one agreement. The growth about physical and economic displays should be monitored on a regular basis, and any slippages should be highlighted in the credit review. The policy to authorize non-finance facilities with an observation to increase earnings should be suitably balanced about the risk concerned and comprehensive only after a careful assessment of credit risk is undertaken. Feature of Securitization A securitized tool, as compared to a direct maintain on the issuer, will normally have the following features: Marketability The very important principle of securitization is to make sure marketability to economic claims. Hence, the tool is prepared so as to be marketable. This is one of the most important features of a securitized device, and the others that follow are mostly significant only to make sure this one. The conception of marketability involves two hypothesizes: (a) The authorized and general option of marketing the instrument; (b) The reality of a market for the instrument. Securitization is a misleading notion unless the securitized product is marketable. The very reason of securitization will be defeated if the device is full on to a few expert investors without any chance of having a liquid market therein. Liquidity to a securitized device is given either by launching it into an organized market or by one or more agencies acting as market makers in it, that is, approving to buy and sell the tool at either fixed or market-determined prices. Merchantable Quality To be market-tolerable, a securitized product has to have a merchantable quality in capital market. The idea of merchantable quality in case of physical produce is something which is suitable to merchants in regular trade. When applied to economic products, it would mean the economic obligations embodied in the tools are secured to the investors approval. To the investors approval is a qualified term, and therefore, the originator of the securitized device secures the device based on the needs of the investors. The universal rule is: the broader the base of the investors, the less is the investors ability to attract the risk, and hence, the more the need to securities. For generally distributed securitized tools, estimation of the quality, and its qualifications by an independent expert. The rating provides for the advantage of the position investor, who is otherwise not projected to be in a position to review the degree of risk involved. In securitization of receivables, the idea of quality experience drastic change making rating is a general requirement for securitizations. Hence, the quality of the maintain of the debtors believes significance, which at times enables to investors to rely simply on the credit-rating of debtors and so, create the device totally independent of the originators personal rating. Wide distribution The necessary principle of securitization is to distribute the product. The level of distribution which the originator would like to realize is based on a relative analysis of the costs and the benefits achieved thereby. Wider distribution guides to a cost-benefit in the common sense that the issuer is able to market the product with minor return, and hence, minor financial cost to him. But wide investor base involves costs of distribution and servicing. In observe, securitization issues are still hard for retail investors to recognize. Hence, most securitizations have been secretly placed with expert investors. However, it is possible that in to come, retail investors could be involved into securitized products. Special purpose vehicle In case the securitization needs any asset or claim which needs to be included and separate, that is, unless it is a shortest and unsecured claim on the issuer, the issuer will want an agent agency to act as a storage area of the asset or claim which is being securitized. Let us take the easiest example of a secured debenture, in concentrate, a secured loan from some investors. Here, security charge over the issuers some assets needs to be incorporated, and later broken down into marketable lots. For this purpose, the issuer will bring in an agent agency whose necessary job is to hold the security charge on behalf of the investors, and then issue documentations to the investors of valuable interest in the charge held by the intermediary. So, whereas the charge continues to be held by the intermediary, valuable interest therein becomes a marketable security. The same process is concerned in securitization of receivables, where the special purpose agent holds the receivables with it, and issues valuable interest documentation to the investors. Assets that can be securitized In essence, all assets which produce a cash flow can be securitized e.g. housing loans mortgage loans, credit card receivables, automobile loans, consumer loans, trade receivables, lease finance, etc. a perfectly and usual financial asset is usually securitized. A difference is generally made between asset securitization and mortgage securitization. Asset securitization is sheltered from a pool of loans and receivables though the mortgage backed securities are sheltered by residential or commercial mortgage loans however mortgage backed securities is a particular kind of asset backed securities. Process of securitization The process of creating asset backed securities is talk about in the following points: The Company sells its products and services on credit and this becomes the trade receivables or account receivables in the balance sheet of the company. Out of these receivables, the originator pools definite receivables jointly on the base of maturity and risk structures and sells these to a securitization company identified as Special Purpose Vehicle or Special Purpose Entity. The securitization company makes payment to the originator for the receivables purchased. These receivables are improved into a pool of securities by the securitization company for the reason of issuing Pass Through or Pay through Certificates. These Pay Through or Pass through Certificates are then charged by Credit Rating Agencies e.g. Pakistan Credit Rating Agencies (PACRA). The Pay Through or Pass through Certificates are sold to individual investors or Qualified Institutional Buyers. The gathering of receivables from debtors is obtained by Company itself in case of Pass through Certificates and by Securitization Company in case of Pay through Certificates. If gathering is made by the Company then it is under commitment to pass on the money to the securitization company. The securitization company after that makes payment to the investors. Why do issuers need securitization? These explanations the investors favor to invest in asset-backed securities: Securitization makes tools with reverse maturities, risks, vouchers, which is attractive to investors. Securitization is a prepared financial device i.e. customized to the risk-return and maturity needs of investors, rather than a trouble-free claim against an entity or asset. Asset-Backed Securitization offers and defer higher than devices with similar risk. This is appropriate to the credit value of the tools (generally AAA rated) and the credit development features. Asset-Backed Securitization offers a expected cash-flow. Investors purchase Asset-Backed Securities with self-belief that payments will take place at particular dates in the future. Asset-Backed Securities are protected by the fundamental assets; therefore they offer important security against lower by rating agencies to the issuer. It gives a chance to the investors to spread their investment collection by investing in these asset backed securities. Impact of securitization on the capital market The impact of securitization on capital market can be analyzed in the following points: Securitization decreases transaction costs in the capital market by generating a market for financial claims, which otherwise, would have continued illiquid, i.e. limited trading. Securitization saves intermediation costs, since the particular intermediary costs are service associated and usually lower. Securitization supports saving since it offers a security to investors with guaranteed interest or payments and an assertion of credit quality and security nets in the variety of trustee

Of mice and men Essay examples -- essays research papers

Of Mice and Men   Ã‚  Ã‚  Ã‚  Ã‚  Of Mice and Men was written during a period of racism. In the 1960's it was important for everyone to get along with eachother because not everyone was equal. George and Lennie showed a great part in friendship throught the whole book. At the ranch in Selinas mostly everyone showed friendship in some way. Friendship was a great factor when the book was published because of all the racism going on at the time.   Ã‚  Ã‚  Ã‚  Ã‚  Friendship has a big part to do with Lennie and George’s dream of owning a small farm and raising animals. George and Lennie both set their mind to accomplish their dream and go to work on a ranch for little pay. Another friend of George overhears George and Lennie talking about their idea, Candy offers to put in his monthly wage to buy the farm as long as he lives on it. Lennie and George have to go through many things on the farm and still stick together like brothers. Curley, the son of the boss, runs most of the ranch and has a mean attitude towards George and Lennie, George then realizes that no one cares for Lennie like he does. George and Curley’s wife create a strong bond throughout the book , but George wants nothing to do with it because he is there to accomplish his goal not to start relationships. Many factors in this book show a sense of friendship in some way.   Ã‚  Ã‚  Ã‚  Ã‚  Both George and Lennie build a strong friendship with the men at the ranch even though it m...

The Bright Side of Regret Essay -- Literary Analysis

â€Å"There is no person so severely punished, as those who subject themselves to the whip of their own remorse,† wisely summates Lucius Annaeus Seneca 1st century Roman philosopher (qtd. in ThinkExist.com Quotations). Effectively illustrating this idea as a concise confessional, the short story, â€Å"I Stand Here Ironing,† is written in an autobiographical style by Tillie Olsen, contrasting the festering damage that unresolved internal remorse creates with the reassuring serenity that unconditional acceptance generates. Regretfully, this stark reality often becomes the harrowing plight of the nescient parent. That having been said, taking a closer look into Olsen’s story will undeniably prove that a conflicting introspective battle between regret and contentment can only be resolved through the emancipation of unconditional acceptance. When experiencing regret, a person has the tendency to repeatedly replay the details of whatever caused that emotion. However, recounting past events is only the first step in the healing process, but it is not the end solution. This is abundantly evident in Olsen’s story which begins with the narrator’s rapid emotional descent into regret. This happens when, as she has probably done a thousand times before, an unnamed third party questions the mother about her eldest daughter, Emily, asking how they can â€Å"help† and â€Å"understand her† better (Olsen 607), for surely she would know. Unfortunately, the answer to this request sends the mother helplessly down memory lane into regret valley. With Olsen’s strong symbolism, the reader becomes more keenly aware of the inner â€Å"torment† she feels while reminiscing about her callow method of raising Emily. Consequently, as the mother â€Å"moves†¦ back and forth† emotionally, ... ...ot have to automatically mean something negative. Therefore, though deep emotions are involved in the healing process, we now know love and acceptance, not guilt and sadness releases us from wasting precious energy on negative thinking and opens up a completely new opportunity, being able to enjoy the bright side of regret. Works Cited Page Kathryn Schulz. â€Å"Don't Regret Regret.† 2011. Video. TED Conferences, LLC, New York. Web. 24 Apr 2012. http://www.ted.com/talks/lang/en/kathryn_schulz_don_t_regret_regret.html Olsen, Tillie. â€Å"I Stand Here Ironing.† Literature: An Introduction to Fiction, Poetry, Drama, and Writing. Ed. Kennedy, X.J., and Dana Gioia. 11th ed. New York: Longman, 2011. 607- 612. Print. ThinkExist.com Quotations. â€Å"Seneca quotes.† ThinkExist.com Quotations Online. 1 Mar. 2012. Web 23 Apr. 2012. http://en.thinkexist.com/quotes/seneca/

How Charlotte Bronte Uses the Different Houses in Jane Eyre Essay

How Charlotte Bronte Uses the Different Houses in Jane Eyre In the novel Jane Eyre, Charlotte Bronte uses different locations in particular different houses to produce a structural base for the story and to provide a basis for Jane’s progression through life and the changes she experiences. The houses are a background to the plot of Jane Eyre that is the evolution of Jane from lonely orphan at Gateshead into an established and well-developed character at Ferndean who is Mr Rochester’s equal. Throughout the story Jane lives in many houses all that are different in certain aspects but in some aspects they are similar. One such aspect is that all the houses have a dominant male in Gateshead it is John Read in Lowood it is Mr Brocklehurst and at Thornfield even though she is equal to Mr Rochester when they are alone when guests are present she must then observe the social hierarchy which means Mr Rochester is dominant over Jane. Another similarity is that in each of different and contrasting houses there is always an over all feeling of Jane being trapped and constrained inside their walls. Jane is always fighting against the dominant males in the houses as seen when she encounters John Reed and calls him a murderer. She always rebels against the dominant male in the household until she meets Rochester who is not only the dominant male but also a kind and loving person. Apart from the dominant male in each house there is also a kind guide such as Bessie in Gateshead and Miss Temple in Lowood. There is one exception and this is in Thornfield where Mr Rochester is both the dominant male and kind presence in the house. In Jane Eyre houses play an important part in shaping and forming the structure of the nov... ...gainst the mystery of Grace Poole and her connection to Mr Rochester. Unlike her stay at Gateshead she is allowed both a social position as a governess and respect member of the house her personal situation with Mr Rochester. Since Jane is a governess and is not of the higher class that Mr Rochester is from. She cannot appear to be involved with him but this only when outsiders arrive. This also represents that Jane is not rebelling against the hypocrisy with Mr Rochester because if she were then she would not observe the social hierarchy. Like all the places Jane has lived in so far Thornfield does supply the amount of freedom that Jane would like. She is still trapped in to certain degree and she longs for something more. She wants just a bit more freedom but she cannot get that at Thornfield at the time she is there. The only place in Thornfield

Corporate Human Resources †Hackney. Essay

This plan sets out the key aims and activities of the Corporate Human Resources service during 2003-04 and in particular how the service will support the achievement of the 2020 Vision for the borough and the other corporate objectives agreed by the Council, which are to: * Make sure the Council works properly and efficiently * Involve the public in what we are doing to get better * Improve opportunities and quality of life in the borough and promote social inclusion 1. OUTLINE OF THE SERVICE 1.1 Corporate Human Resources is managed by the Assistant Chief Executive (Human Resources), a member of the Core Management Team, who is responsible for ensuring the council’s compliance with employment legislation. The purpose of the HR function is to work in partnership with managers to maximise the efficiency and effectiveness of our workforce in order to support the council’s business strategy and achieve excellence in service delivery 1.2 The components of the Corporate HR function are: à ¯Ã‚ ¿Ã‚ ½ Strategic human resource management Develops a strategic framework that provides direction for the organisation in order to optimise employee productivity and achieves continuous improvement in the context of best value. Sets standards of best practice ensuring consistency of approach to create one organisation. Provides both guidance and input into operational HR functions. Provides the tools to drive up performance and productivity and drive down sickness absence. Works in partnership with employee representatives in order to create and embed a positive and constructive industrial relations environment that achieves service excellence. Development and implementation of procedures and guidelines to ensure managers work towards a productive employee relations culture. à ¯Ã‚ ¿Ã‚ ½ Learning and organisational development Develops and introduces strategies, policies and programmes to develop the capability of the council, its Members and employees to successfully implement business objectives and priorities. Establishes a competency based performance management approach to become a learning organisation, bring about culture change and to harness and extend the knowledge, skills and experience of all those within the council in pursuit of service excellence. à ¯Ã‚ ¿Ã‚ ½ Health safety and welfare Promotes a healthy and effective workforce, promotes good practice in health and safety, and addresses ill health at work and ill-health early retirements. Ensures compliance with occupational health, safety and welfare legislation and guidance. Develops and implements Occupational Health service policies in co-operation with the Council’s nominated provider. à ¯Ã‚ ¿Ã‚ ½ Strategic HR Contracts team Procures and monitors the payroll contractor to ensure timely payment of Hackney employees and pensioners. Monitors the Independent Referral Unit, which provides a 24/7 confidential telephone help- line. This is an independent specialist service where employees can raise their complaints and concerns about racial discrimination, racial harassment and racially discriminatory practices in the workplace. Monitors the One-Stop Recruitment contract responsible for permanent and temporary recruitment and the job matching service for the council’s redeployees. Procures and monitors the Occupational Health Service contractor which carries out pre-employment health checks on new appointees and provides medical advice to help manage sickness absence. 2. SUMMARY OF PERFORMANCE FOR 2002/2003 The service was restructured in March 02 to downsize by eight posts and interviews were completed over March and April; there were some redundancies with staff leaving in June. Two vacant posts were filled by August. The Departmental Strategic Objectives for 2002/03 were: à ¯Ã‚ ¿Ã‚ ½ To review and implement an HR strategy to reflect organisational needs and the new senior management structure; to consult all stakeholders – Directors, senior management and members by April 02. We achieved the early stages and with the appointment of the Head of HR in August 02 this is being carried forward for completion by April 03. à ¯Ã‚ ¿Ã‚ ½ To introduce competency based performance appraisal in the organisation by April 02 and carry out regular audits of service areas. We are currently in the process of reviewing the implementation process of the performance appraisal and development framework. A report of the findings will be produced for Core Management Team in December 2002. à ¯Ã‚ ¿Ã‚ ½ To achieve Investors in People standard – with assessments carried out across directorates by September 02. This was achieved by Corporate Human Resources and the Social Services directorate. Assessments of the remaining directorates will take place in early 2003. à ¯Ã‚ ¿Ã‚ ½ To work towards Commission for Racial Equality level 4 standard. This has been replaced by the Equality Standard for Local Government level 2 and is being carried forward for completion by April 04. à ¯Ã‚ ¿Ã‚ ½ Continue to fight racial discrimination by following through the Race Equality Action Plan, to reduce the number of complaints to the Independent Referral Unit, measuring the number of cases referred and their outcomes Ongoing. à ¯Ã‚ ¿Ã‚ ½ Develop corporate HR database and to ensure that systems are in place to provide workforce and BVPI monitoring information with complete audit trails. We are on target to procure a Human Resources Information System by April 03, have had the approval of Cabinet and are meeting the milestones of the new corporate procurement process. The Departmental Service Priorities for 2002/03 were: * Recruitment of third tier managers by 30 June. 88% achieved, 6% under review, 6% vacant. Continuation of this activity is identified as a key project in Appendix 2(B) * TUPE of Education staff to Hackney Education trust by 1 August. Achieved * TUPE of finance staff to external provider. This exercise is still under review and the decision deferred whilst the organisation examine the feasibility of a strategic partner arrangement. * Implementation of Best Value Performance Plan; production of annual BVPP estimates and actual performance by Feb 02. Achieved * Implementation of the second stage of Single Status. Ongoing. * Trade Union facilities agreement. Corporate agreement and budget reduction achieved. Local consultation agreements ongoing. * HR Standards & Frameworks. Review of existing documentation – consult Executive and negotiations with Trade Unions as necessary. All managers complying with HR standards and frameworks. Available on website March 2002. Existing standards and frameworks on website. Continuation of this activity is identified as a key project in Appendix 2(B) * Objective: reduce days lost per employee through sickness and industrial action. Project Manager of sickness absence team appointed, project developed and now being implemented. * Race Relations Amendment Act. New Council policy agreed. Achieved * Non Discrimination Notice Requirements. Production of regular monitoring information for the CRE. Achieved Regular ET panels to be convened. Dates have now been scheduled for the remainder of 2003 and the programme of panels will continue through 2003/4. * To reduce spending on the Payroll Services Contract to save à ¯Ã‚ ¿Ã‚ ½250,000 per annum by 2004/05. On target to appoint new contract for Feb 04 and achieve savings on current contract. * Bring payroll debt under control by 31 March 2003. New HR Information system to be implemented by September 03 will be single point on data entry to prevent new debt occurring. ITNet to be invoiced for debt due to their errors at end of financial year. The Training and Development Plan for 2002/03 * Culture Change Executive Coaching programme. Achieved Phoenix Programme – Race Equality Action Plan. Achieved Progress training and development related to the Race Equality Action Plan. Achieved * Race Equality Action Plan/ Investors in People Implement workforce development interventions and initiatives. Achieved Implement a mentoring and coaching programme for employees. Ongoing * Corporate Induction – Organise a series of induction programmes throughout the year. Achieved * Management Development Implement competency based appraisal & development framework. Achieved * Human Resource Management training. Ongoing * Workforce/ Organisational Development (Race Equality Action Plan) Investors in People. Ongoing; achieved in HR and Social Services Corporate development events/ road shows. Achieved Budget The HR cash limit for 2001/2 was set at à ¯Ã‚ ¿Ã‚ ½1,179k. Changes to accountancy practices meant that the costs of the corporate trade union facility and for the Occupational Health Service were no longer recharged to the payroll overhead as in previous years and no budget was transferred to the cash limit. This could have resulted in a à ¯Ã‚ ¿Ã‚ ½330k overspend but was contained by keeping seven posts vacant and through good housekeeping. HR were then on course to achieve the cash limit, however in February 2002 we were given the responsibility for the payroll debt and had to make a bad debt provision of à ¯Ã‚ ¿Ã‚ ½271k for other departments debts. An under spend of à ¯Ã‚ ¿Ã‚ ½35k therefore became an overspend of à ¯Ã‚ ¿Ã‚ ½236k. 3. CHALLENGES FOR THE YEAR AHEAD 3.1 Implement an HR strategy to reflect a one organisational approach. Reviewing and re-launching the HR standards and frameworks. 3.2 Completing the government direction of recruiting the council’s third tier of management and working through a programme to increase 4th tier capacity. 3.3 Embed performance management to increase productivity, tackle under performance and achieve service improvements through appraisal, sickness absence management, health and safety performance management and HR standards monitoring. 3.4 Embed competency-based performance appraisals in the organisation. 3.5 Review the council’s recruitment and retention strategy to improve the management capacity at all levels. 3.6 Reducing sickness absence levels to achieve the government’s targets of 9 days by 2005 and embedding an attendance culture in the organisation. 3.7 Whole organisation achievement of the Investors in People standard in 2003 and maintaining a continuous learning culture. 3.8 Procure, implement and deliver a Human Resources Information System across the council and improve all manual HR processes to meet audit requirements and best practice. 3.9 The payroll function will be subject to a competitive tendering process by 31 January 2004. 3.10 Continue the programme of single status implementation with Waste Management and Finance. Ensure that the programme of job evaluations for Scale 6 staff and below is completed in line with the single status agreement. 3.11 To achieve level 2 of the Equalities Standard for Local government. 3.12 Embedding a performance management model for Health and Safety across the council. 3.13 To implement a Members’ Development Programme. 3.14 To implement a Leadership Programme for third tier management. 3.15 SWOT Summary STRENGTHS OPPORTUNITIES * Nurture and maintain CMT/top team support for HR * Increasing organisational stability ? shared corporate knowledge * Increasing financial stability ? Less moving of goal posts * New Political stability ? Better decisions * New legislation ? Support Hackney change objectives * Continue to develop own (HR) skills * Develop SMARTER ways of working as a team (e.g. by cross-team project working, matrix teams, greater appreciation and awareness of each other’s strengths). * Develop and achieve improvement to HR information systems. * Redistribute reducing HR recruitment budget and improve capacity-building (in HR) * Corporate Performance management framework – All managers and staff are clear about the requirements and good practice standards. * Improving recruitment and retention; new employer brand improving rewards and recognition; better and new skills balance. WEAKNESSES THREATS * Impact of reducing budgets possible constraints on obtaining appropriate funding for changes required or innovating. Need to monitor closely and use more wisely and creatively. * Poor balance between operational versus strategic HR activities ? Need to improve capacity to focus more on strategic roles and review opportunities for improving efficiencies in delivery of operational functions. * Pressures of deadlines imposed by others. Affect ability to deliver reliably; need to renegotiate earlier; need to improve how we manage our needs/demands as well as other stakeholders/clients MAKING SURE THE COUNCIL WORKS PROPERLY AND EFFICIENTLY 4. MANAGEMENT AND STAFF PROVIDING HIGH QUALITY SERVICES 4.1 Investing in the development of staff ? Revise frameworks in line with recommendation ? Ensure consistent standard of implementation ? Evaluate the impact of the supporting Training and Development programmes (quality and quantity) ? Design, commission & implement programme ? Design, commission and implement Scrutiny, Members development programme. ? Evaluate 2002 development programme ? Implement revised programme ? Develop Phase II of development programme ? Design and implement Development Programme ? Evaluate Phase I of Development Programme ? Implement programme ? Monitor Implementation ? Evaluate programme ? Implement programme ? Monitor Implementation ? Evaluate programme ? Prepare for strategic assessment of the council ? Audit standard to ensure continuous improvement and compliance in meeting IIP standard ? Implement programme ? Monitor Implementation ? Evaluate programme ? Implement programme ? Monitor Implementation ? Evaluate programme 4.2 Ensuring staff performs to high standards. Embed performance management to increase productivity, tackle under performance and achieve service improvements. Embed competency-based performance appraisals in the organisation. 4.3 Tackling poor performance. Reducing sickness absence levels to 9 days by 2005 and embedding an attendance culture in the organisation. Reviewing and embedding capability framework. 4.4 Equality of opportunity in recruitment and employment practices. Monitoring of corporate Equalities Plan and Equalities Scheme. 5. ACCOUNTABILITY FOR THE USE OF TAXPAYERS MONEY 5.1 HR are addressing the following corporate objectives: * New financial management systems – by procuring a corporate HR Information System. This will be a single point of data entry to payroll for starters/leavers and absence recording to remove the current problem of overpayments to staff and leavers caused by processes being paper-based and difficult to enforce. * Consistent records are kept and procedures followed by – à ¯Ã‚ ¿Ã‚ ½ HR Standards and Frameworks giving a clear guide to managers on recording staff attendance and maintaining personal files, à ¯Ã‚ ¿Ã‚ ½ Maintaining a cost centre validation tool introduced to prevent staff being placed on payroll without a valid cost code, à ¯Ã‚ ¿Ã‚ ½ Developing and implementing an Establishment Post number system for all staff to ensure only valid members of staff are being paid. * Ensuring budget holders manage their budgets – by issuing guidelines on verifying appropriate staff are on the payroll and paid at the correct scale. HR has local monitoring systems, which are reconciled to the general ledger every month. The ACE (HR) hold weekly budget meetings with the HR management team to identify and tackle potential areas of risk. * Improving the way we procure services – by participating in the corporate procurement training programme and involving the Hackney Procurement Centre at all stages of current procurement projects; project management of these and participation in post-procurement reviews. 5.2 District Auditor’s Regularity Review * Risk based planning. Operational and financial risks are being identified and evaluated as part of the on-going, six weekly scrutiny process. Risk identification, evaluation, monitoring and management arrangements are being embedded in the 2003/04 budget preparation and service planning process. Improved monthly financial monitoring procedures have been introduced and a new scheme of delegation has been finalised. * Payroll. A reconciliation exercise between payroll records and local employee monitoring and forecasting systems has been undertaken and additional resources have been deployed to clear the backlog of payroll overpayments. Revised procedures are being developed to reduce the risk of future overpayments and the new HR Information System will act as a single point of entry to replace current paper-based processes. * Contracts. Contracts registers established. Contract monitoring and management procedures are embedded. * General income. Work is underway to improve income collection and debt management and recovery procedures. Income profiles are being established, against which collection performance will be monitored on a monthly basis. Revised procedures for debt management and debt recovery are being introduced and performance will be monitored on a regular basis. Arrangements are be being strengthened further in the 2003/04 budget preparation process. * Payments to agency staff. A One Stop Recruitment contract for permanent and temporary recruitment is in place as a result of a competitive tendering exercise. There is a single point of invoicing from appointed agencies via the leas supplier who provides monthly financial monitoring information to the council. 5.3 Key procurement activities are: à ¯Ã‚ ¿Ã‚ ½ the purchase and implementation of an HR Information System (see 3.7) à ¯Ã‚ ¿Ã‚ ½ The competitive retendering of the payroll contract which expires 31 January 2004 (see 3.8). à ¯Ã‚ ¿Ã‚ ½ Future retendering of the Occupational Health Service contract by April 2004. INVOLVING THE PUBLIC IN WHAT WE ARE DOING TO GET BETTER 6. REVIEWING OUR NEW DEMOCRATIC ARRANGEMENTS 6.1 The Head of Learning and Development is working with the Deputy Mayor and INLOGOV to design and implement a Members Development Programme. Members training needs such as IT training and Scrutiny skills are being identified to implement a training programme. 7. IMPROVING INFORMATION TO THE PUBLIC 7.1 All current job vacancies in the council are now published weekly on the Hackney Live website. The public can download job details and profiles, advice and guidelines on how to apply for posts and complete application forms. The One Stop Recruitment contractor Bartlett Scott Edgar manages and maintains the database of advertised posts and acts as a single point for enquiries and response handling. Hackney recruitment now has corporate branding and materials are produced to improved quality standards. We intend to make it possible in the next year to make it possible to complete and send applications online. 7.2 Our equalities scheme: we will use our council website to publish the results of consultation exercises and the monitoring information in accordance with our requirements under the Race Relations Amendment Act 2000. 8. DEALING WITH SERVICE REQUESTS PROMPTLY AND EFFICIENTLY 8.1 Members’ enquiries are logged and responded to within three days. All responses are approved and submitted by the ACE (HR). The service also implements the corporate letter monitoring and complaints procedures. 8.2 Complaints about externally provided HR services are raised in regular contract meetings with providers and used to review and fine tune services provided. Contracts are to monitored against HR local BVPI’s. IMPROVING OPPORTUNITIES AND QUALITY OF LIFE IN THE BOROUGH AND PROMOTING SOCIAL INCLUSION 9. GIVING OUR ADULTS THE SKILLS TO GET JOBS 9.1 HR will explore the increased involvement with apprenticeships and work experience schemes to improve access for local people to council jobs. 10. PROTECTING AND SUPPORTING THE MOST VULNERABLE PEOPLE IN OUR COMMUNITY 10.1 HR ensures that all staff interviewed for posts with unsupervised access to young people have a pre-employment check through the Criminal Records Bureau. Agencies providing temporary staff through the One Stop Recruitment contract also carry out pre-employment and police checks before placing them with Hackney managers. All agencies under the contract have had to pass quality criteria to ensure they carry out these procedures.