Ancient Civilization Of Ancient Civilizations - 2605 Words

Introduction Monuments are resilient and commemorative structures that are significant to cultures or social groups. They may tell the tale of an event or celebrate or revere a person or God. Mayan stelae monuments are monuments that were fashioned by the Maya civilization of ancient Mesoamerica. They consist of tall sculpted stone shafts and In ancient Maya society, cosmological beliefs encompassed all aspects of life and integrated individuals into a unitary worldview and culture. Inspired by their beliefs, Mayan civilization created some of the most intricate monuments, decorated in colors and hieroglyphics that depicted important imagery for these Mesoamerican people. With the use of tall-sculpted stone, stelae monuments were erected. The Mayan site Copan, located in western Honduras belonged to a civilization based on a complex sociopolitical structure. Copan became one of the more powerful Maya city-states and was a regional power in the southern Maya area. The major classic kingdom period occurred between AD 250-850, when major cultural developments began to take place showing Mayan skill in their achievements in science, mathematics, astronomy and hieroglyphic writing. The site as Copan Valley encompassed around 100 hectares and had three main phases of development that included residential areas, central districts with stone temples, two large pyramids, several stairways and plazas. One principal trademark from the classic period is the portrait sculptures onShow MoreRelatedThe Civilizations Of Ancient Civilization1178 Words   |  5 Pages Civilization, derived from the latin word â€Å"civis† meaning â€Å"citizen†, or simply someone who lives in a city. However, what is the difference between a group of people who live in a town and our modern concept of civilization. To find the answer to that question we can turn to the civilizations of ancient times. The beginning of civilization as we know it began in the Neoli thic era. This era began with a very distinct change to the way of life, from the old way of migrating constantly to whereverRead MoreAncient Egyptian Civilization : Ancient Civilization930 Words   |  4 PagesThe ancient Egyptian civilization is one of the oldest known civilizations in history. It is believed that the ancient Egyptian civilization, based in eastern North Africa, started around 3150 B.C., and survived until 31 B.C. In this ancient civilization, art was considered to be magical. Whether in the form of painting, sculpture, carving or script, art held the power to maintain universal order and grant immortal life by appealing to various gods to act on behalf of people, both in life and inRead MoreAncient Civilizations1009 Words   |  4 Pages Ancient Civilizations Ancient Civilizations were more pronounced in the Bronze Age. This historical period lies between 4000 to 1200 BCE. Ostensibly, these civilizations were triggered by the onset of irrigations systems, which concomitantly increased food and water supply. Irrigation schemes and availability of food set precedence for people tens of thousands of people to live together in a common geographical location. Cities, states, and centrally developed kingdoms developed. From historicalRead MoreThe Ancient Civilization1622 Words   |  7 Pagesadvanced civilization is perhaps the most intriguing story of all.To understand what causes great civilizations, it is vital to note the process of collapse in other civilizations, such as the great Roman Empire. Differences in time period, geographical landscapes, and other circumstances mean no direct correlations are possible, but the outstanding point of similarity is that no single factor accounts for a large civilization s collapse. One similarity be tween these two civilizations is the processRead MoreAncient Civilizations : Compare And Contrasting Ancient Civilizations804 Words   |  4 PagesContrasting Ancient Civilizations Most people believe that all ancient civilizations were the same: they all lived with a steadfast loyalty to their one and only king that ruled all of the lands, civilizations only achievements were monumental buildings, and they vacuously attacked neighboring societies to gain more land for millennia. While some of this knowledge is true to an extent, civilizations accomplished an abundance more than some realize. Some fail to register that early civilizations are uniqueRead MoreAncient Civilizations And The Egyptian Civilization1403 Words   |  6 PagesWilliam McNeill, author of A World History, is in accordance with the belief that ancient civilizations who were in constant contact with conflict and war could develop a more advanced system of law, bureaucracy, and market prices. By that logic, Mesopotamia would have been far more advanced than Egypt. For example, Mesopotamia frequented attacks from barbarians because of the lay of the land. They also had trouble controlling war between centers of industry due to the inevitable struggle with theRead MoreThe Rise Of Civilization And Ancient Civilizations898 Words   |  4 PagesThe rise of civilization has always fascinated people. Since the appearance of anatomically modern human beings, some one hundred and fifty thousand years ago, the emergence of civilization has been one of the most important accomplishments of people. Civilization is defined as â€Å"an organizing principle that implies common institutions, economic systems, social structures, and values that extend over space and time† (Matthews 3). Some of the things that make up a civilization are religion, governmentRead MoreAncient Egypt : An Ancient Civilization1523 Words   |  7 Pages Ancient Egypt, an ancient civilization known today as one of the world’s greatest, would last over 3000 years thanks to the many Egyptians contributing to its success. One such Egyptian was the Pharaoh, Akhenaton. Born to King Amenhotep III, Akhenaton ascended to the throne at around 1353 BCE . He was also known as Amenhotep IV, but would later change his name to Akhenaton in order to worship the god â€Å"Aton† . Akhenaton may be considered one of the most important figures in Egyptian history seeingRead MoreAncient Civilization And The Aztec Civilization Essay1781 Words   |  8 Pages One of the greatest ancient Mesoamerican civilizations lies right below modern day Mexico City. 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Gattaca Shows Us the Dangers of Uncontrolled Technology.

In the ‘not-to-distant future’, the world of Gattaca is where genetic engineering has become the normal approach to procreation. Gattaca’s society involves a culture of self-advancement through genetic determinisms, a caste system of valid and in-valids and social discrimination based on ‘genoism’. This sterile and cold society of elitist collaborations like Gattaca promotes competition, isolation and discrimination. This is something that is dangerous to individuals and relationships and shows an arrogant belief to the world of science. Despite this hierarchical world it isn’t the technology that stands alone as dangerous to individuals, instead it is the human sprit or lack of it and the desire one has to reach their dreams that have an†¦show more content†¦Twice he beats Anton at swimming; proving genes are not the sole determinant- ‘The impossible happened. It was the one moments in our lives that my brother was not as strong as he believed, and I was not as weak.’ Vincent crosses the highway despite his blurred vision, whereas the police investigating the murder seem blind. Instead of the physiological fate, it is the strengths an individual psychological holds that determines the future of an individual, and Vincent proves this. Vincent’s defects give him the spirit Eugene, Josef and Anton lack. Niccol condemns the obsession with genetics as something which blinds people to reality. The film condemns the false premises of genetic engineering and eugenics that aim to eradicate all ‘undesirable’ traits and imperfections. In this ‘manicured’ world, human passions still seek liberation; people quietly sabotage the rules, loyalty and love continue and individuality survives. The human sprit it suggest remains strong, and can act as a counterbalance to the negative tendencies of an oppressive, controlling society where uncontrolled technology is dangerous, but alsoShow MoreRelatedFahrenheit 451 Gattaca Comparative Study - Historical Context2281 Words   |  10 Pageswriter delivers a message to the audience, educating them about the current contextual concerns and the possibility of the dystopias that are developed as a result. This is demonstrated in the novel Fahrenheit 451, written by Ray Bradbury and the film Gattaca, directed by Andrew Niccol. Both of these composers illustrate their fears for the fate of their society through the stru ctural and language features of their texts. Ray Bradbury explores the value of using knowledge and independent thinking rather

Economics of Globalization Vietnam Economy

Question: Discuss about theEconomics of Globalization for Vietnams Economy. Answer: Introduction: This study is examined to understand the economy of Vietnam and do an analysis on the Vietnams economy. It is one of the fastest growing economies of Asia. Vietnam is a developing economy but it is expected that soon it will be a developed company. In the first section of this study, Vietnam economy has been described. Vietnams government is applying many policies to overcome all the problems and make their nation best one. In the second section, the study revel about Production performance output that what are production performance output and an analysis on production performance analysis of Vietnam in 2005- 2016. In third section, study on Labour market analysis has been done. In this section it is described that what is labour market and an analysis study on Vietnam labour market in 2005-2016. In fourth section, Price level analysis has been done. This section describes about price level and price level analysis in Vietnam from 2005-2016. The last section is a conclusion section. Economy of Vietnam: Viet Nam had declared one of the highest rates of poverty reduction and economic growth in the world though it was accompanied by higher inequality. There are several factors behind these improvements. Some of the factors are pragmatic party leadership, strong governing and market institutions, wide reaching network of infrastructure, economic policies, initial investment for human development, focus on agriculture and many more (Vandemoortele Bird, 2011). Vietnams economy is increasing rapidly in recent years. Its Gross domestic product (GDP) was 8.4% in 2005. It forecasted 8.0% in 2006. Vietnams highly export helped its economy to grow more rapidly Still much of the population of Vietnam living at rural area and heavily dependent on Biomass energy source (Focus economics,2016). These are dung, rice husks and wood. Thus, the per capita commercial consumption rank of Vietnam is among the lowest in Asia. Its commercial energy is expected to rise in further years because of increasing the rate of natural gas consumption. Currently in Vietnam the economic activities have lost some speed in comparison of last quarter. The internal reason behind this slow rate is industrial production growth and external reason is less export and high import. The main reason behind less export is Samsung phone scandal, as the phones quality and features are not good enough and it had been manufactured in Vietnam. Production Output Performance Analysis: Production is a kind of process where various material and immaterial inputs combining together for make something to consume. Production output performance is a kind of regular measurement done to check the result or outcome, which generates a reliable data of output on its efficiency and effectiveness. Output Information doesnt tell anything related to actual result achieved or the significance of service and product delivered. Output information is needed by a country to analyze the size of input and activities produce. In 2005, Vietnams growth rate of manufacturing sector had increased more than 9%. Vietnam had exposed itself from domestic market to foreign market. Vietnam had expanded its export of manufacturing goods such as footwear and textiles. The liberalization impacted on service sector also as retail and transport service. The people started shifting from agriculture sector to non agriculture sector. Vietnam manufacturing sector has expanded by 9.3% in 2005 and labour productivity has been increased by 3.1%. As this sector is having a part of 30% of overall GDP, the rapid growth of this department made a sustainable change in Vietnams economy. The competitive strength of Vietnam in 2005 was agriculture, service and industry. The main industry of manufacturing sector was ready made clothes and electrical equipment with 12.9% and 12.0% share respectively. The export rate was also increasing in this period. It was among the fastest and largest growing agriculture export country in Asia at that time (Hoang, 2008). In 2016, the GDP of Vietnam has been rose by 6.7%, more than expected. The performance of manufacturing department is very strong currently with a sharp growth in output, improving in the demand of client and competitive pricing. In this period, many efforts are doing by Vietnam government through make the changes in exchange rate for enhancing the manufacturing sector more. In Vietnams the FDI is also increasing from last few years. Exports have been increased by 10% with a surplus of US$ 2.5 billion. Vietnam public is more skilled now, people are doing work with more effectiveness and efficiency to achieve their target and make the profit. It is directly impacting on GDP of Vietnam. Soon, it is expected by Vietnam to be a developed company. The policies of former government were quite nice and the same is expecting by public from new government. Thus, it can be concluded that industry is so far so good. Many significant changes has been done in the industry to change the economy of Vietnam from developing to a developed country. Many foreign companies are manufacturing their product in Vietnam right now like Samsung. Vietnam is inviting more FDI to invest in their country and making it a competitive country in the market. Labour Market Analysis: Labour market is a place where employees and labour meet with each other. In this market, an employer looks for the best employee whereas workers find for a satisfying job. It is a part of economy where demand and supply of labour is analyzed. Here, Labour demand stands for the firms demand of labour and Supply stands for workers supply in the market. The demand and supply of labour is influenced by bargaining power of both the parties (Berg, 2015). Labour market of Vietnam was in the process of establishment in 2005. There were many shortcomings like partitioned by regions, partition by territories, undeveloped and lack of legal framework etc). The labour market size of Vietnam was 11.10 millions, 25.6% of total labour in Vietnam. The policies affected only non-agriculture sector workers only. Agriculture sector and forestry sector employees were remained limited (Kline, 2007). In 2005, approx 6% labour were engaged in agriculture sector, 22% labour in non agriculture sector and remained 72% people were self employed out of which 53% self employed people were in agriculture-forestry-fishery sector. Vietnams government was focusing more on labour and their employment. There were 177 public employment introduction centres. Nationwide, approx 3000 employment consultancy introduced in 2005. Thus Vietnams labour market was emerging in 2005. Still because of low competitiveness in the labour market, there were imbalance between demand and supply of labour. In 2016, Vietnams labour market is increasing rapidly. Currently, there are 70.17 million people over there among them 24.48 are living in urban area. The inactive population over the age of 15 is 15.77 million people that have been decreased from previous year (General Statistics Office of Vietnam (GSO), 2008). The labour market participation is increasing continuously even the share in labour market of women has also increased. The quality and quantity of labour Supply has been improved in comparison of last years. A significant change has been found among the school and college going students (Lodhi, 2010). The ratio of skilled labour has been increased in the market of Vietnam. The skilled workers group has divided into 5 groups:Above university there are 134 thousand people (2.77%); Professional degree holder are 454 thousand people (3.06%); 33,000 people from vocational college (18.37%); secondary and primary people are 68,000 people (9.48%) and 46,000 people respectively. There is a declining trend in Agriculture, forestry and fisheries labour also as they all are shifting in non agriculture sector now (Thuy et all, 2015). Thus, the market scenario has been changed in a large manner from 2005 to 2016. There are so many changes in the industry. Vietnam has proved itself as one of the rapidly changing countries of Asia. In comparison of 2005, there is more skilled labour in the market and wages rate has also been increased. Because of Globalization, labour requirement has also been increased and its result is showing on the GDP of Vietnam. Price Level Analysis: Price level is a technique of measurement of current price of any services or goods in the economy in a specific country at a specified time. This technique helps an economist to monitor the changes into the price of goods and services. Price changes due to either inflation or deflation in the market. If there is inflation in the market, the price level will be increased and if there is deflation in the market, then price level will be decreased. The most common type of price level measurement is consumer price index (CPI). This helps a country to know about its economy and competitive advantage (Arnold, 2008). In 2005, the economic growth rate was high with an average rate of 7% per annum. Inflation was managed at a low rate because of high oil prices, bird flu, and rice demand in international market. Vietnam became member of WTO in 2005 and after it the landscape of the country has been improved. In 2005, a huge hike has been noticed in world market and it impacted to Vietnams economy with a great increment in consumer price index (An, 2005). Prices of foodstuffs and food, services etc had increased due to rose in the price of oil and petrol in 2005. As a result of it many products price has been increased specially that product which consumes oil pr petrol while manufacturing (Ngoc, Trinh Thanh, 2007). Thus, a new and higher price level had been detected in Vietnam economy (Vinh Fujita, 2007). The CPI was increased by 6.8% at the end of 2005. The new price level impacted on the economy of Vietnam and it resulted as a poor competitiveness of enterprises, products and economy as a whole (General Statistics Office of Vietnam (GSO), 2008). The CPI of Vietnam in 2016 is increased to 104.67 points in November. In the first 3 months of 2016, 1.3% inflation rates has been rose due to these reasons: Development and investment in Vietnams macroeconomic report, draught has caused an increment in agriculture price, foreign investment plan and free trade agreement have become effective. The increase in the price of medical service, fuel, education, food etc plays key role in the rise of CPI. CPI is out of the control of government. The raise into price of goods drives a higher rate of inflation. Commercial bank forecasted that inflation rate of 2016 in Vietnam will be more than 5% and the same happened (Trading Economics, 2016). The inflation rate increased more than expected and it is because of natural disaster, severe population and price of oil. The inflation rate was increased in 2005 and 2016 unexpectedly. The reason behind it is some natural problems, higher prices in world market, oil and petrol price increment etc. The more inflation rate, more price of products and at the time of deflation rate, less price of products. The reasons behind gradually increasing the inflation rate are price decided by WTO and oil and petrol prices. Conclusion: After studying many published articles, newspapers, research papers, books and many more, it can be concluded that Vietnams macroeconomic is rapidly increasing. The economy of Vietnam is among the fastest growing economies in Asia. This essay is revealing about product performance output that how a products output impacts on economy of a nation, Price level analysis that how price of a product and inflation rate of a country impacts its whole economy and their competitive advantages, Labour market analysis tells about demand and supply of labour and its impact on Vietnams economy. It can be concluded after doing this study that Vietnam is an emerging country and policies applied by the government of Vietnam are really working and helping this nation to grow up. This country is focusing on each element to be a developed company and exports are continuously increasing of this nation that is helping this nation to maintain the inflation rate. Reference: Vandemoortele, M. Bird, K. (2011). Viet Nams progress on economic growth and poverty reduction: Impressive improvements. Overseas Development Institute. Kline P.M. (2007). Three essays on Labour market analysis: Dissertation Summary. Viewed on 12 Dec 2016 from https://research.upjohn.org/cgi/viewcontent.cgi?article=1010context=dissertation_awards An D. V. (2005). Vietnam Economy 2001-2005 and socio economic development plan 2006-2010. Viewed on 12 Dec 2016 from https://www.eaber.org/sites/default/files/documents/CIEM_Dinh_2006_02.pdf. Trading Economics (2016). Vietnam Consumer Price Index (CPI). Viewed on 12 Dec 2016 from https://www.tradingeconomics.com/vietnam/consumer-price-index-cpi Vinh, N. Fujita S. (2007). The impact of real exchange rate on output and inflation in Vietnam: A VAR approach. Viewed on 12 Dec 2016 from https://www.lib.kobe-u.ac.jp/repository/80200043.pdf. Berg, J. (2015). Labour markets, Institutions and Inequality. Edward Elger Publishing. Arnold, R. A. (2008). Macroeconomics. Cengage learning. General Statistics Office of Vietnam (GSO) (2008). National Accounts Online, viewed on 12 Dec 2016 from https://www.gso.gov.vn/default_en.aspx?tabid=468idmid=3ItemID=6193, accessed 01st July 2008. General Statistics Office of Vietnam (GSO) (2008). National Accounts Online, viewed on 12 Dec 2016 from https://www.gso.gov.vn/default_en.aspx?tabid=468idmid=3ItemID=6193, accessed 01st July 2008. Lodhi, A. H. A. (October, 2010). Land, Labour and Agrarian Transition in Vietnam. Journal of Agarian Change, Vol. 10, pp 564-580. Focus Economics. (November, 2016). Vietnam Economic Outlook. Viewed on 12 Dec 2016 from https://www.focus-economics.com/countries/vietnam Ngoc, Q. P., Trinh, Q. B. Thanh, D. N. (2007). Economic performance of Vietnam, 1976- 2000: New evidence from input-output model?, DEPOCEN Working Paper Series No. 2007/13. Hoang, V. Q. (2008). Vietnam Economic Times. Voung Quan Hoang. Thuy, N. T. Et all (2015). Exploring vietnams progress in economic growth. Swiss programme for research on global issue for development. World trade Institute.

Some Poets Attitudes To Love Essay Example For Students

Some Poets Attitudes To Love Essay A love poem is a piece of poetry that describes a positive emotion for one from another. Love poems can come in many different forms. There are free verse love poems, where poets use no particular rhyming scheme or rules, but they let their poetry flow. You can also find many ballads about love. In Elizabethan times, often, sonnets were written to lovers or about them. These are fourteen-lined, short verses that often portray emotion very well. Love poems often use metaphors to describe emotion because love is such a strong emotion that it cant be described physically to another. Christina Rossetti was a Victorian poet who often wrote about love. In her poem Amen, it is hard to tell what she is writing about. It could be love or even life. At the start of each verse, she makes a definite statement and then questions it. She starts with It is over. What is over? This implies that she is unsure of herself or is not quite sure what is happening with her life or relationship. The poem acts out her thought process. To start with, she seems sure that It is over. Lets assume that she is describing a relationship. She has a chance to think and decides that she doesnt know what is over. This could imply that she doesnt know which part of the relationship is over or why. She could be questioning it because although it may be over to him, it is far from over with her she is still very much in love with him. Her questioning of her statement could mean that she doesnt agree with it; deep down she feels differently. Then, as if in confirmation of this, she denies that the statement is true. Rossetti uses nature to describe how the relationship was built and why it still exists. She says Harvest days we toiled to sow for: now the sheaves are gathered newly. By this, I think she means that hard work has been put into the relationship to make it work and so it is not failing, but a small crop still exists and is still growing. A harvest is used to describe the relationship (or the life) of Rossetti. A harvest usually symbolizes life, comfort, food and mirth. A good harvest is a positive thing. In the next verse, again, she still seems very unsure of the way things are going in her life. Another one of her thought processes is used to begin the second verse. She states, It is finished. But then goes on to ask, What is finished? very unsure. However, in this verse, she decides to agree with her statement that yes, much has finished. She says, Lives are finished; time diminished; was the fallow field left unsown? By this, I think she is trying to say that, although the actual relationship or her life hasnt ended, much has. I think that she is trying to say that whilst trying to make relationships work or perhaps trying to fulfill an ambition, she had been wasting time because now, her chances may be lost, after all that work! In this verse, she seems to be asking herself whether or not the whole thing wasnt just a waste of time. In the third verse, she states, It suffices and she seems to be a lot more positive about love. She says, spring shall bloom where now the ice is. She believes that everything will be all right in the end, even if it seems like a waste of time at the moment. Again, she uses nature to describe the love and/or happiness she will feel. Spring is a season where new life is born, blossoms flower and all the snow melts, like a new start. I think this is what she sees will happen a new start. Instead of cold, hard ice there will be joy and new life. She is hopeful. Poetry Analysis of "Common Grounds" EssayIn the second verse, Walsh describes another type of relationship that she will not enter into. She uses religious words to help her to put across the fact that she doesnt want to be over-praised or seen as being perfect. Instead, she would like a realistic relationship with a partner that is sincere, and doesnt make her feel uncomfortable. She says, I am no doll to dress and sit for feeble worship. Walsh knows that she isnt perfect, and she knows that she never will be she would like a man to accept that and still love her. In verse three, Walsh says, than gratify your clamorous desire. His clamorous desire is to have sex. Walsh refuses also to enter into a relationship based around sex. She says that she will not willingly enter into a relationship that is just for him. In the last verse, Walsh describes the type of relationship she will enter into willingly. She needs trust, loyalty, a friendship and comradeship; she wants the relationship to be equal and realistic. Walsh says, Together we may know the purity and height of passion, and of joy and sorrow. By this, she means that she would like a soul mate that she can share all her experiences with, the good and the bad. She then goes on to explain how she will feel if this man did come along, she would become totally engulfed with her love for him. She would feel secure in the relationship because she would trust him to give back the love she gave. She describes the potential love between them as something that would be the most perfect thing ever. She says hand holding hand until we reach the very heart of God. By this, I think that Walsh means that they will happily spend their lives together until they die and reach heaven. It could also mean that they spend their lives together until their love cannot become more perfect and takes its place with God. This poem has no real rhyming scheme so I find it more passionate and flowing than those by Rossetti. I think Walshs attitude to love is different to Rossettis. Both see it as a wonderful thing but I feel that Rossetti doesnt decide whom she loves, but lets herself love anyone. I dont think Rossetti is practical enough to think abut how the relationship will be long-term; she is passionate and gets caught up in the moment. Walsh, however, thinks about relationships far into the future and is brave enough to say no. I think, out of the two, Walshs love has to be the truest, because she doesnt assume that everything will be perfect just because there is love. She realizes that things arent always to plan so she plans in advance. Of the two poems, I enjoyed Christina Walshs poem more.

Islam Essays (1406 words) - Canadian Muslims, Criticism Of Islam

Islam the Islamic Congress's president, Mohamed Elmasry. Mr. Elmasry said there are bad Muslims just as there are bad Christians and Jews. We treat them as such and so should you. But Islam is a religion of peace. Muslims have a religious duty to be tolerant of other faiths and other ideologies.'' Mr. Elmasry said journalists need to differentiate between the peaceful teachings of Islam and the claims of some Muslim extremists that their actions are justified by their interpretations of Islam. He likened the situation of Canadian Muslims today to that of Canadian Jews 50 years ago. Jewish children were being (wrongly) called Christ-killers just as Muslim children are called terrorists today.'' In their letter to the editor in the April 27 issue of the College Hill Independent, Jumana Musa and Shadi Nahvi made some excellent points. They rightly asserted that the Western press tends to portray Arabs and Muslims according to stereotypes and these myths persist partly due to Western popular ignorance about Arabs and Muslims. Since the Muslims students at Brown condemned the bombing of a Tel Aviv bus last year, I am learning to separate the handful of Muslim and Arab extremists who commit terrorist attacks against Israeli and Jewish civilians from the millions of Muslim believers who do not participate in this violence and sometimes express opposition to it. Since I began interacting with Muslims students through the kosher/hallal meal plan this year, I am changing my perceptions of Muslims and seeing them as people instead of abstractions. I think that many, many people in the United States and in western countries, in Europe, are afraid of a monster called Islam. And as the honorable Congressman Dana Rohrabacher said, it is an insult to consider the whole of Muslims, to take them into one side, and make them extremists. Really it is not correct. It is a little bit insulting. What is the definition of extremism? We can see in all of history: even when the first settlers came to the United States they were from different countries; Spain, England, France, European Countries. They were fighting on this land and fighting with the Indians. Do we call this extremism? A fight for a better living, which you understand you are doing not for a religious motive, is not extremism. Extremism in Islam, or in religion, is when you use religion to label intolerance, to turn from religion and take ideas that you can extract for yourself, or deduce for yourself, and use to make a militant movement and disturb the peace in your country or around the world. That is called extremism, and Islamic Extremism. But a movement for better living, that is not extremism. These people nowadays are developing two ways of understanding the situation of Islam. From one side they think that they have to reform it; it is a duty on them, they have been brainwashed to think that they have to cleanse the world of devils and demons and of countries that suppress them, oppress them, and try to shut them down. Logicians argue that one cannot pass a judgment on something unless one has a clear conception of it, because the unknown and the undefined cannot be judged. Therefore, we first have to determine what religious ,extremism means before we can condemn or applaud it. We can do so by considering its reality and its most distinguishing characteristics. Literally, extremism means being situated at the farthest possible point from the center. Figuratively, it indicates a similar remoteness in religion and thought, as well as behavior. One of the main consequences of extremism is exposure to danger and insecurity.! Islam, therefore, recommends moderation and balance in everything: in belief, ibadah, conduct, and legislation. Islam is frequently misunderstood and may even seem exotic in some parts of today's world. Perhaps this is because religion no longer dominates everyday life in Western society; whereas, for Muslims, Islam is life. Muslims make no artificial division between the secular and the sacred. bin laden: The treacherous attack has confirmed that Britain and America are acting on behalf of Israel and the Jews, paving the way for the Jews to divide the Muslim world once again, enslave it and loot the rest of its wealth, the US magazine quotes bin Laden saying. What particularly interested me in the report was the military demand that terrorism be eliminated and extremism be abolished. Both terrorism and extremism, however, seem to include, at least in their minds, most

Emergance of modern china essays

Emergance of modern china essays By the nineteenth century, China was experiencing growing pressures of economic origin, there were over 300 million Chinese, but there was no industry or trade to absorb the excess labor. The scarcity of land led to widespread breakdown in law and order. Localized revolts erupted in various parts of the empire. As elsewhere in Asia, in China the Portuguese were the pioneers, establishing a foothold at Macao, from which they monopolized foreign trade at the Chinese port of Guangzhou (Fitzgerald 743). Soon the Spanish arrived, followed by the British and the French, trade between China and the West was carried on in the aspect of tribute, foreigners were forced to follow the elelaborate, centuries-old ritual imposed on agents from Chinas tributary states. There was no conception at the imperial court that the Europeans would expect or deserve to be treated as cultural or political equals. The only exception was Russia, the most powerful inland neighbor. The Manchus were sensitive to the need for security along the northern land frontier and therefore were prepared to be realistic in dealing with Russia. The treaty of Nerchinsk (1689) with the Russians, drafted to bring to an end a series of border incidents and to establish a border between Siberia and Marchuria along the Heilong Jiang, was Chinas first bilateral agreement with a European power (Fairbank 201). Western diplomatic efforts to expand trade on equal terms were opposed; the official Chinese assumption was that the empire was not in need of foreign products. Despite this attitude, trade flourished, even though after 1760 all foreign trade was confined to Guangzhou, where the foreign traders had to limit their dealings to a dozen officially licensed Chinese merchant firms (Fitzgerald 762). Trade was not the sole basis of contact with the West. Since the thirteenth century, Roman Catholic missionaries had been attempting to establish their church i...

Change Management Simulation Essay Example | Topics and Well Written Essays - 1250 words

Change Management Simulation - Essay Example The lever that was pulled in week 1 was to tell a success story to Deborah Edge, Luke Filer, and Bob Ingram. The effect of this lever was that 2 people entered the awareness stage, and 1 person entered the interest stage. The rationale for this step was that these individuals were previously opposed to the process and such a move would gain their confidence. The next step was to get the CEO’s public support; the target was the entire organization. The effect was that four people entered the interest stage. The rationale behind this was that it would shift the organizational culture in favor of the project. The next step was to get consultant support. The effect of this was no noticeable effect. This was rationalized, as it would improve the project’s feasibility. In week 6 a pilot project was conducted; specifically targeted were Henry Adams, Deborah Edge, and Yao Li; the effect was that 1 person entered the awareness stage, 2 people entered the interest stage, and 1 pe rson entered the trial stage. The rationale for this decision was that it would demonstrate the project’s feasibility and begin the steps to establish the innovation. In week 12 progress reports were posted; this was targeted at the entire organization and had no noticeable effect. Again the intention was to advance the project and further demonstrate its feasibility to individuals opposed. The week 13 level was to provide internal skill building to Walt James, Diane McNatt, and Sam Puffer; 4 people entered the awareness stage. The rationale was that this would both gain support for the project and begin to establish the necessary intellectual infrastructure. Week 15 built on these earlier elements through attempting to build a coalition of support; still there was no noticeable impact on the project. Week 19 used the recognize an adopter lever on Henry Adams, again noticeable effect occurred. Week 22 implemented the ‘walk the talk’ level; this had a significant impact 3 people entered the interest stage and two people entered the trial stage. The rational was that this decision would demonstrate to the organization the plan’s action. In week 22 progress reports were posted again simply as a means of moving the project along. In week 25 an e-mail notice was issued and 2 people entered the interest stage. In week 26 the goals and deadline were accounted; 6 people entered the awareness stage, 1 person entered the interest stage, and 2 people entered the trial stage. The rationale for this was both to gain support, both also for the pure functional aspect of moving the project along. Week 30 implemented the ‘revise reward system’ level; 6 people entered the interest stage, 6 the trial, and 5 the adoption. Rewards are recognized as a prominent aspect of effective leadership and motivation. Week 42 implemented ‘walk the talk’ as a means of gaining further support; 4 people entered the trial stage. Week 46 conduct ed private interviews with four people as a means of gaining further development insight on the project; 3 people entered the trial stage, 1 person the adoption. Week 47 goals and deadlines were announced and 2 people entered the adoption stage. Week 51 further worked towards advancing the new aspects of the project by building a coalition of support; this had no noticeable effect. The rationale between week 62 and week 64 was to gain the organization’s complete support, as a result week 62 told a success story, week 63 conducted private

Summarize the reasons for the failure of Lehman Brothers Essay

Summarize the reasons for the failure of Lehman Brothers - Essay Example hat the problems of the Lehman Brothers were well published over the media which gave time to the derivatives market to prepare for the worst (The Economist, 2008). The statement was pretty correct as the credit-default swaps market had not been broken but buckled up (The Economist, 2008). The bank was unable to assess the risk of the borrower or trading partner which resulted in defaults paralyzing the cash flows of the bank. According to The Economist, a senior bank executive quotes this mistake of deregulated leasing â€Å"the mistake of a lifetime† (The Economist, 2008). The Lehman Brothers was caught up amidst US$ 613 billion of debt of which US$ 160 billion was held by international investors as unsecured bonds. The European pension funds and the individuals in Asian markets had believed in the high rating of the Lehman Brothers and put their investments in this unsecured bonds. The price of this unsecured bonds collapsed quickly destroying the share price of the company to half overnight. The shareholders had already witnessed downfall of the prices of shares in the past few months. These losses caused a spiral in the money market. International investors pulled off US$ 400 billion from the money market funds which was supposed to be a safer investment. This action was taken when a fund suffered losses which were loaded on Lehman’s debts (The Economist, 2008). Dick Fuld was the CEO of the Lehman Brothers at the time of the collapse of the bank. The Lehman Brothers has been the 4th largest investment bank in the US since 1994. Mr. Fuld has been partly blamed for the collapse of the bank and the losses made by the investors. The CEO enforced many policies and precautions to avoid any financial storm, but still the bank revealed US$ 2.8 billion losses in the next quarter. On the 15th of September, 2008, the share price of the bank went down 94% as compared to the previous year. The redundancy of 24,000 employees caused a great human cost. All these factors

Pathological Processes in the CNS and the Rest of the Body Essay

Pathological Processes in the CNS and the Rest of the Body - Essay Example Abnormal insulin signalling is not only involved at the glucose level but also at numerous degenerative processes. Another common feature of these two diseases is that their prevalence increases as age advances (Abbas, et al., 2009). This paper will review the common inflammatory and pathological processes in the CNS and the rest of the body. Alzheimer’s disease is the most common form of dementia among older people. It is associated with the loss of cognitive functions like thinking, remembering and reasoning to an extent where it interferes with the patient’s day to day functioning (Russell, et al., 2007). Most patients diagnosed with Alzheimer disease are over 65 years old although the Alzheimer process can start earlier. In 2010, there were 27 million people diagnosed with Alzheimer’s disease. It is projected that by the year 2050, 1 in 85 people globally will be suffering from Alzheimer’s disease (Holscher, 2011). Research has associated the disease with plaques and tangles in the brain. Alzheimer’s disease is characterized by loss of synapses and neurons in the cerebral cortex and some areas of the subcortical regions. This leads to the loss in gross atrophy of the affected parts of the brain (Irwin, 2010). In Alzheimer’s disease, an unknown protein causes amyloid precursor protein to be divided into smaller fragments by enzymes in a process called proteolysis. One of these fragments becomes fibrils of beta-amyloid that form deposits in dense formations referred to as senile plaques. A protein called tau stabilizes microtubules. In Alzheimer’s disease, tau undergoes chemical changes and begins to pair with other threads that create neurofibrillary and disintegrates the neuron transport system (Thompson, et al., 2007). Type 2 diabetes is the most common form of diabetes. Unlike type 1 diabetes, the bodies of type 2 diabetes patients make insulin, but either the body does not use the insulin well or the pancreas does not make enough insulin.  Ã‚  

Analysis of Risk Management in Banking Activity

Analysis of Risk Management in Banking Activity The Case of Mauritian Banks Financial deregulation, globalization and liberalization have heightened considerable banking risks. Moreover, banks necessitate effective risk management strategies to promote banking welfare, protect outside agencies transacting with banks and to ensure stable banking operations. Risk managers need to focus on the diversity of risks and secure the interests of the overall banking sector. Risk Management is nowadays segregated where there is inconsistency in reporting, insufficient evaluation and low quality of management and becomes ineffective due to lack of pertinent information and improper analysis of the risk factors (Prabir Sen, 2009). Nonetheless, banks are unable to keep equilibrium in the situations of risks with huge losses and slight possibility of occurrence and risks of minimal losses with propensity of occurrence.   According to Talmimi and Hussein, Mazroezi and Mohammed (2007), risk management enables profits maximization and entails restrictions in risky activities. Risks can be averted by ordinary banking procedures, can be shifted to other institutions and can be managed actively in banks (Oldfield and Santemero, 1997). 1.1 Objectives of the Study The core objectives of the study are: To probe into the methodologies and aspects of the risk identification, assessment, monitoring, management and mitigation in Mauritian banks. To ascertain the effects of risk management on Mauritian banks. To determine to which extent risk management strategies like Basel II, derivatives, stress testing and Asset and Liability Management are applicable in Mauritian banks. To analyze the factors which improve Risk Management Practices in Mauritian banks and the perspectives about Banking Risk Management. To explore the reasons for managing risks in Mauritian banks. 1.2 Statement of the Problem There is an increasing awareness that the gradual intensification of banking risks impacts adversely on banking transactions which raises the concerns for risk management. The basis concern of this study is whether the Mauritian banks are using diverse risk management tactics and whether they are able to cope with the present and prospective challenges of risks and risk management requirements. 1.3 Significance and Contribution of the Study Bank managers can be conversant with divergent risk management techniques, their implications, effects and their relevance in banks through the practical aspects of risk management application. Bank managers can analyze the mechanisms resulting in the increasing level of risk exposures. Business administrators and management practitioners can use this study as guide to design efficient measures to mitigate risks in the process of developing marketing tactics. 1.4 Structure of the Project Chapter 2 elaborates on the literature review related to the risk management. Chapter 3 uncovers the general overview of Mauritian Banking Sector. Chapter 4 focuses on the detailed research methodology that has been used. Chapter 5 discusses the analysis and interpretation of the Mauritian banking risk management information. Chapter 6 probes on the recommendations to improve Risk Management practices in Mauritian banks. Chapter 7 concludes the whole findings of the project. PART 1- THEORETICAL ASPECTS 2.1 Introduction The advent of technology, globalization and the competition has encouraged banks in risk taking activities exposing banks to risks. Regulatory and supervisory institutions have emphasized the need for banks to enhance their risk management practices. Risks arise from the probabilities of the occurrence of losses and usually emerge from the internal and external banking transactions. 2.2 Banking Failures determinants The past decades have encountered numerous bank turbulences where high costs have been incurred on both local and overseas level (Gaytà ¡n and Johnson 2002, p.1), hindering the credit facilities, minimizing investment and consumption and generating bankruptcy cases (Demirguc-Kunt and Detragiache, 1998a, p.81). According to them, the expensive monetary policy was used to force the sound banks to sustain the failures of insolvent banks which dissuade risk management. Fluctuations in interest rates post abolition of Brettons Woods System, higher banking competition, the non existence of intermediation margins, unskillful lending and investment tactics (Hellwig 1995, p.724-726 ) , the diminishing role of the oligopoly rents as stated by Gehrig (1995 cited Hellwig 1995, p.726 ), the lower level of capital reserves in banks, companies high reliance on banks for external finance mentioned by Rajan and Zingales (1998 cited Randall S. Kroszner 2007),systemic shocks caused by credit risks, the inability to diversify loans, trade deterioration and decrease in asset prices caused bank failures argued by Gorton (1988 cited Demirguc-Kunt and Detragiache1998b, p.85). Moreover, regime changes like financial repression, liberalization and severe macroeconomic conditions encourage the entry of inexperienced players and preference for the acquisition of useless loans stated by Honohan (1997 cited Gaytan and Johnson 2002, p.4) have generated banking turbulences.   Non-performing loans increase where the asset returns are less than the returns to be paid on liabilities. Banks borrow in international currency and lend in local currency where the latter depreciates if the foreign exchange currency risk is shifted to local borrowers if they loaned in foreign currency. Banks buy insurance protection which encourages risk taking activities in the absence of prudential supervision and regulation. Bank managers engage in fraudulent actions by taking a portion of money for their personal use (Demirguc-Kunt and Detragiache 1998c, p.85-87). Diamond and Dybrig (1983 cited Demirguc and Detragiache 1988d, p.86) argued that banks portfolio assets can worsen and depositors believe that other depositors are removing their money. Obstfeld and Rogoff (1995 cited Demirguc and Detragiache 1988e, p.87) mentioned that an anticipated devaluation could occasion bank runs in local banks and these deposits are shifted overseas and render the domestic banks without l iquidity. 2.3 Banking risks alsamakis et al (1996 cited Young 2001, p.57) argued that risks can be classified as pure risks and speculative risks. Pure risks which embody market risks, credit risks, interest rate risks, liquidity risks, country risk and settlement risk are associated with the probability of occurrence of loss or no loss and can be curtailed by risk management strategies. However, speculative risks comprising of operational risks, technology risk, reputational risk, compliance risk, legal risk and insurance risks involve an opportunity for gain or loss which can be hedged. 2.3.1 Credit Risks These major risks occur in banks when the borrower defaults on his obligation to reimburse the principal amount and the interest charged of the loan. Credit risks consist of three types of risks like (Arunkumar and Kotreshwar 2005, p.9): Transaction risk emerges from the fluctuations in the credit type and capital depending on how the bank underwrites individual loan transactions. Intrinsic Risk is risk prevailing in some institutions and on granting credit to some firms. Concentration risk is the average of transaction and intrinsic risk within the portfolio and encourages granting of loans to one borrower or one firm. 2.3.2 Interest rate risks Koch (1995 cited Beets and Styger 2001, p.9) defined interest rate risk as the future changes in a banks net interest income and market value of equity due to changes in the market interest rates. Kropas (1998 cited Martirosianien) enumerated three types of interest rate risks like: Reappraisal risk stems from the diverse periods of assets and liabilities Profitableness curve risk entailselements affecting the reappraisal risk. Basic point risk concernsflawed association between the receivable and payable interest rate. Option risk is where the benefits of options can adversely affect the banks equity. 2.3.3 Liquidity risks Liquidity risks occur when the banks are unable to meet the demands of the depositors because of lack of funds and the illiquid assets resulting eventually in bank insolvency. Credit, strategic, interest rate and reputation risks build up liquidity risks (Gaulia and Maserinskieno 2006, p.49). 2 types of liquidity risks are (ADB Report 2008, p.9): Funding liquidity risk is the potentiality to obtain money via the sale of bank property and by borrowing. Trading Liquidity risk arises from making a constant entry in market activities and dealings. 2.3.4 Market risks These risks arise when the value of the financial products changes negatively and consist of currency risk, interest rate risk, equity or debt security price risk (Gaulia and Maserinskieno 2006, p.49). 2.3.5 Operational Risks Basel Committee (2004) which imposes a capital charge defined operational risks as the risk of direct or indirect losses resulting from inadequate or failed internal processes, people, and systems, or from external events. This definition includes legal risk, but excludes strategic and reputational risk. 2.3.6 Reputational Risks These risks emerge when the number of clients decreases as they hold negative perspectives about the quality of services offered by the banks. 2.3.7 Strategic risks Strategic risks arise when bad decisions and projects are undertaken to develop a special system in banks due to the lack of resources, technological tools and the expert staff. 2.3.8 Foreign Exchange Risks These risks come when the prices of the currency fluctuate when engaging in foreign activities. There are 3 types of foreign exchange currency risks. (Deloitte Treasury and Capital Markets 2006) Transaction risk entails the future of original cash flows like imports and exports. Translation risk is concerned with the disparities between foreign exchange encountered when again transforming a foreign exchange value into the functional currency of the company concerned. Translation risks are usually converted into transaction risks on a late basis as earnings are repatriated or assets and liabilities are realized. Economic risk arises when indirectly exposed to buying and selling of goods from someone who buys goods overseas. 2.3.9 Systemic risks The bank cannot collect money from an organization it is dealing owing to the political, economic and social conditions prevailing in the country where the organization is situated. Country risk includes political, economic risk and transfer risk (National Bank of Serbia). 2.3.10 Legal Risks Legal Risks are losses incurred when the bank is sanctioned by a court for the non-compliance with the lawful rules and regulations and on not fulfilling its obligations towards the other parties (National Bank of Serbia). 2.3.11 Financial Fraud There is mismanagement of money and fraudulent actions from the members of the banks who embezzle some deposited money and when there is lack of security controls. 2.4 Bank risk management methods Greenspan (2004 cited in Lam 2007, p.3) said that It would be a mistake to conclude..that the only way to succeed in banking is through ever-greater size and diversity. Indeed, better risk management may be the only truly necessary element of success in banking. 2.4.1 Risk Management in Banking Sector Flaker (2006, p.4-8) proposes three methods: 2.4.1.1 Risk Identification The board must set the risk profile of the bank and identify the risk-return tradeoff. The bank should understand and identify types of risks exposures, their sources and their effects on the overall banking stability. 2.4.1.2 Risk management and reduction Risk management and minimization embody the following: (1) Allow loans after considering their financial status of the borrowers. (2) Comparison of the expected risks with the actual ones to diminish the loan losses in a bigger portfolio. (3) Loan losses will decrease due to diverse borrowers in the lending transactions. (4) Actual risks can be compensated through the opposite movement of other risks in particular financial activities. (5) Insurance negotiations can be used to protect against diverse risks. 2.4.1.3 Risk Management System This flexible system encompasses the combined structure of identification, evaluation and risk mitigation techniques. The Board must set up a strong risk culture and an effective governance structure where the risk management system aligns with the existing structure of the bank. Risk management procedures are possible when retaining higher level of capital to cushion the risks. Furthermore, the risk management functions comprises of: (1) Delegation of responsibilities to each banking segment (2) Auditing system to deal with the internal control processes and proper execution of risk controls (Nikolis, 2009). (3) Ongoing reviews, reporting, updating and the control of risk management system must be executed to ensure that they tailor with the banking aims (4) Training courses gaining know-how about the design of the risk management system and risk models must be offered to avert banking failures. (5) Establish rules and regulations and take necessary actions to those who contravene with them regarding risk management practices. (6) Participation of the banks, regulatory and supervisory bodies where information is disseminated externally and internally in the banks (Kroszner, 2007). 2.4.2 Asset and Liability Management Asset and Liability Management entails the design of organizational and governance models which define the risk approaches subject to the banking operations (ADB 2008, p.10). 2.4.2.1 ALM operations are as follows (ADB 2008, p.10-12): ALM ensures a risk and return management process where the combination of expertise and risk appetite is needed. ALM unit manages bank risks either through a passive or aggressive approach thus increasing its value. ALM unit investigates upon the static and dynamic mismatch; sensitivity of net interest income; and, market value under multiple scenarios -including under high stress. The net interest income evaluates the sophisticated banks operating results. It does not project the effects of risk compared to the economic value which can identify banking risks but is inaccessible to most banks. 5. Funds Transfer Pricing eradicates the interest rate risks by securing a spread in loan and deposits by allocating a transfer rate that mirror the repricing and cash flows of the balance sheet. Liquidity risks can be managed like diversification of financing sources, correlate the liquidity risks with other risks and use stress testing analysis. 2.4.3 Stress testing Practices Stress testing is another risk management strategy where Stress testing is a generic term used to describe various techniques and procedures employed by financial institutions to estimate their potential vulnerability to exceptional but plausible event (Kalfaoglou 2007, p.1). It uses statistical data analysis to risk management techniques, interpret and control the unfavorable outcomes. JP Morgan Chase has integrated stress testing equipment to manage and analyze the sources of possible banking risks, implement tests on the value of its portfolio, analyze its risk profile and contemplate the effects while applying diverse scenarios. An effective risk management scheme, stress testing project and bank staff expertise are requisite to tackle the statistical and economical fundamentals of stress testing with a data measurement tool. Board of directors should monitor the inputs of stress testing system (Seminar on Stress Testing Best Practices Risk Management Implications for Egyptian Banks 2007, p.2-3). Furthermore, the 2 types of stress testing strategies in banks like: (1) Simple Sensitivity Test deals with the rapid fluctuations of the portfolio value due to a risk factor on a short term basis. (2) Scenario analysis is used by large complex banks and is associated with a realistic and econometrics approach towards shifts in portfolio value due to changes in many risk factors. 2.4.4 Basel II Basel II published in June 2004, promotes banking supervision and emphasizes the specified capital requirements to cushion against potential losses. Basel II uses qualitative and quantitative requirements to monitor risk management strategies, to ensure compliance with regulations and reinforce corporate governance structure. The risk based supervision has enabled the supervisors to concentrate on the origins of banking risks. 2.4.4.1 Pillars of Basel II Pillar 1 entails capital needed for credit risk, market risk and operational risk. Moreover, banks under this regime must have a capital adequacy of 8 %. The methods for the computation of the capital charge to measure operational and credit risks (Ma, 2003)are: Basic Indicator Approach The size and capital requirements of the operational risk are estimated as a fixed proportion of the banks net interest income and non-interest income, measured as the average over the last three years. The Standardized Approach –The activities of the banks are allocated risk ratios weights related proportionally to the quantity distributed to every category. The aggregate capital requirements are the addition of all the requirements for the categories. Advanced Measurement Approach Computation of credit and market risks and the capital requirements are founded on the banks internal system for the measurement and management of operational risk for large banks An Internal Rating Based System The BIS stated that capital requirements must be founded on a qualitative and quantitative analysis of credit risk and must be used for diverse bank units. Founded IRB approach indicates that large banks should calculate probability default related to a borrowers grade to demonstrate the capital requirement level. However, under advanced IRB approach, these banks with an internal capital allocation can furnish the loss given default and exposure at defaults which are processed. Pillar 2 A supervisor must ensure that the bank has the adequate capital requirements to deal with risks. Banks estimate the internal capital adequacy by adopting quantitative and qualitative techniques. On-site investigation and ongoing reviews probe in capital adequacy. Pillar 3- Market discipline framework provides with detailed information about the banks risk profile to evaluate and report capital adequacy where risk exposures can be analyzed through quantitative and qualitative approach regularly. The risk based capital ratios and qualitative information about the internal procedures are needed for capital adequacy purposes. 2.4.5 Derivatives olatility of financial market, the liberalization and deregulation in the 1980s and 1970s has founded derivative markets (Hehn no date a, p.100). Derivatives are financial tools (like futures, commodities futures, options, swaps, forwards) whose returns, values and performance are derived from the returns, values and performance of the underlying assets. Hedging is covering against potential risk through an opposite position in the derivative markets. Bank International Settlements (2004 cited Bernadette A. Minton et al 2008, p.2) noticed that the quantity for derivatives has leveled from $698 billion in 2001 to $ 57,894 billion in 2007. Proper derivatives trading can insure against market risks and interest rate risks without retaining additional capital requirements in the balance sheet (Kaudman no date a, p.85). The determinants of derivatives use are banking size, balance sheet constituents, aggregate risk exposures, profitability, performance and risk taking incentives. Jason and Taylor (1994 cited in Hundman b, p.86) argued that speculation used with derivatives to make profitable returns can engenders more interest rate risks. Moreover, Tsetsekos and Varangis (1997 cited Roopnarine and Watson 2005a, p.9) argued that financial derivatives promote increase in resource allocation and increase the productivity of investments projects. Jorion (1995 cited Roopnarine and Watson 2005b, p.9) argued that in price discovery, market participants are offered information on balance prices that mirror the present demand on the supplies which enable effective decision making and reveal the position of the cash prices. Besides, liquid funds are increased and transaction costs are reduced and the futures market reflects the large transactions at prevailing prices (Roopnarine and Watson 2005c, p.10).   However, derivatives have generated enormous failures in Barings Collapse, Merill Lynch and Procter Gambler (Hehn b, p.101). Bank staff must be trained and educated about derivatives use. Derivatives trading can be constrained with the liquidity problems and legal uncertainties that emerged from the market price movement which is argued by Bhaumik (1998 cited Roopnarine and Watson 2005d, p.11). Pricing of assets becomes difficult if there is insufficient information about the derivatives use. Principal agent problem is aggravated (Roopnarine and Watson 2005e, p.12). The derivatives market must be regulated properly to avert fraudulent actions and insolvency. Partnoy and Skeel (2006 cited Minton et al. 2008a, p.2) claimed that derivatives intensify systemic risks as banks do not control the lending activities. Hunter and Marshall (1999 cited Roopnarine and Watson 2005f, p.28) argued that derivative markets attract investors whose private information are assimilated in the observable p rices and diminish the bid ask spread. The underlying cash prices reduce the transaction costs and the demand for money thereby affecting the operations of the monetary policy. Bedendo and Bruno (2009a, p.2-4) argued that credit transfer tools like securitization, credit derivatives and loan sales reduce regulatory capital requirements, motivate lending and enhance the banking liquidity positions. Moreover, they remedy the issues of information asymmetries as stated by Greenbaum and Thakor (1987 cited in Bedendo and Bruno 2009b, p.2). Duffee and Zhou (2001 cited Minton et al. 2008b, p.11) mentioned that credit derivatives are used if the loan sales or securitization techniques become expensive due to moral hazard problem and can shift default risk where information advantage is insignificant and retain some portion of risks where information advantage is huge. Banks use credit transfer tools as they have little access to inter-bank funding, huge funding expenses, low capital and want loan transfer (Bedendo and Bruno 2009c, p.8-9). CRT tools encourage banks to use originate-to-distribute models via aggressive lending occasions (Bedendo and Bruno 2009d, p.10) . Pricing of CRT tools is preferred by large banks having higher skills. Some loans sales have loan characteristics like small size, asymmetric issues and standardization convenient for securitization (Bedendo and Bruno 2009e, p.11). PART 2- EMPIRICAL REVIEW There is a growing literature that examines the relationship of banking risks with other many economic and financial variables. Moreover, this section describes the diversity of banking literature where different types of risk management strategies were tested and criticized. Even the links between different types of risks were experimented using banking information and models derived from other authors empirical work. Peek and Rosengren (1996) found that the large users of derivatives for speculation purposes are the troubled organizations using derivative information of 25 active banks in the United States from 1990 to 1994 in the US dummy regression model.   Banks are unable to track the risky aspects of these derivatives and guide their risk profile because of insufficient derivative information which could jeopardize the overall banking system. The onsite targeted examinations can enable banks to window dress their derivatives. Regulatory rules and formal transactions must be imposed on the banks taking unfavorable speculation and to constrain the moral hazard problem related to the derivative transactions. The use of speculative derivatives constitutes a stringent criminal penalty for breaching the established rules and regulations. Cebenoyan and Strahan (2001) used data of the sale and purchase of bank loans and those loans sold or purchased without recourse from all domestic commercial banks in the US from 1987 to 1993 in a regression model. They found that banks that engage in loan sales market to manage credit risks retained minimum level of capital which can be modified. Moreover, these banks retained more risky loans since they managed credit risks and were exposed to an unsafe position despite they endured lower level of risks compared to the other banks who manage risks without the loan sales market. Banks that employed the risk management techniques are more inclined to engage in risk taking activities. In fact, banks that manage credit risks lend to more risky loans depicting that complex risk management practices enhanced the bank credit position rather than minimizing the risks. Gatev et al (2006) investigated upon the presence of liquidity risk from both sides of bank balance sheets using some aspects of the Kashyap, Rajan and Stein (2002) model (that liquidity risks originating from the two fundamental businesses of banking promotes a diversification benefit) to analyze the link between deposit taking and commitment lending for large, publicly traded banks using regression analysis. Pooling deposits and commitment lending insure against banking liquidity risks and deposits activities insure against liquidity risk from idle loan activities. Bank stock-return volatility increases with idle loan transactions which is insignificant for banks with huge amount of depository dealings. The deposit-lending risk management becomes more reinforced when there is low level of liquidity and when troubled market participants deposit money in banks. Shao and Yeager (2007) used information of large publicly traded U.S BHCs from 1997 to 2005 using regression models to find the link between credit derivatives and their risk, return and lending issues. Banks buy credit derivatives to hedge against risks, to increase their equity and to compensate for the risky loan losses. However, they sell credit derivatives exposing themselves to risks to gain a premium charge. Moreover, the credit derivatives users enjoyed minimal returns and increase risks which are compensated. Their findings implied that on a general basis, the impact of credit derivatives on risk relies on the risk management strategies. Holod and Kitsul (2008) used panel data of stock returns from 53 U.S BHCs from 1986 to 2007. They found that after 1996, poor capitalized banks engaged in active trading transactions are more exposed to systemic risks compared to well capitalized banks. Banks cannot always have enough capital to cushion the market risks and must sell their illiquid assets or invest in the financial markets to compensate for the lack of capital to adhere to the market-based capital requirements. Capital requirements in Basel II do not help to reduce banking risks totally but contribute towards increasing systematic risks. Topi (2008) used a model of Allen and Gale (2004) where banks offer deposit contracts to ex ante identical, risk averse depositors who face heterogenous liquidity shocks for Bank of Finland which shows that the liquidity can impact on the banks motivations to minimize the default losses. The bank runs encourage the banks to avert the credit losses after the sub-prime mortgage crisis. However, the bank runs without a signal of the credit risks will reduce the banks willingness to curb the incidence of credit losses. The central bank can mitigate the propensity of liquidity stress for solvent banks rather than insolvent banks. In addition, this research provides an area for further research where the policy interventions and financial market innovations can be integrated in the model to identify the impact on banks motivations. Achou and Tenguh (2008) used regression model for Qatar Central Bank by executing a time-series analysis of financial data from 2001-2005 to examine the correlation between profitability and loan losses. They showed that effective credit risk management improves the financial result of the bank with the aim to secure the banking property and to work in the welfare of the market participants. Besides, their study revealed that credit risk management infrastructures are used to minimize the credit losses. Banks with efficient credit risk management system have insignificant loan default ratios, good revenues, minimal non-performing loans and are able to tackle credit losses. Minton et al. (2008) investigated the use of credit derivatives using U.S BHCs (assets overtakes $ 1 billion) and non-missing data on credit derivatives use from 1999 to 2005. Few companies use credit derivatives for dealer activities rather than for hedging against default losses. Credit derivatives use is constrained because the liquidity of credit derivatives market is favorable for investment grade companies since they can use derivatives to insure against the default losses. Therefore, the illiquidity of credit derivatives market affects the non-investment grade companies as they need confidential information for loans where higher cost of hedging will dissuade banks to hedge. Nevertheless, the bank borrowers get loans at a cheap price and banks are more on a competitive stance with the capital markets to provide loan facilities if the credit derivatives can help bank to retain capital. Credit derivatives can only promote the financial health of banks if they generate lesser ban king risks. The sub-prime crisis prior to 2007 has shown that the dealer activities via the credit derivatives contain many risks and in 2008 generated systemic risks. This study provides an avenue to assess the risks posed by credit derivatives when engaging in dealers transactions dealers. Bedendo and Bruno (2009) differentiated between the application of loan sales, securitization and credit derivatives for a sample of US large domestic commercial banks (total assets greater than one billion USD) for June 2002-2008   They found that the most CRT users employ conservative tools and large international banking corporations utilize credit derivatives. They detected that highly capitalized banks with less risky portfolios purchase credit derivative protection to hedge against capital inadequacy.   Moreover, banks with riskier loan portfoli Analysis of Risk Management in Banking Activity Analysis of Risk Management in Banking Activity The Case of Mauritian Banks Financial deregulation, globalization and liberalization have heightened considerable banking risks. Moreover, banks necessitate effective risk management strategies to promote banking welfare, protect outside agencies transacting with banks and to ensure stable banking operations. Risk managers need to focus on the diversity of risks and secure the interests of the overall banking sector. Risk Management is nowadays segregated where there is inconsistency in reporting, insufficient evaluation and low quality of management and becomes ineffective due to lack of pertinent information and improper analysis of the risk factors (Prabir Sen, 2009). Nonetheless, banks are unable to keep equilibrium in the situations of risks with huge losses and slight possibility of occurrence and risks of minimal losses with propensity of occurrence.   According to Talmimi and Hussein, Mazroezi and Mohammed (2007), risk management enables profits maximization and entails restrictions in risky activities. Risks can be averted by ordinary banking procedures, can be shifted to other institutions and can be managed actively in banks (Oldfield and Santemero, 1997). 1.1 Objectives of the Study The core objectives of the study are: To probe into the methodologies and aspects of the risk identification, assessment, monitoring, management and mitigation in Mauritian banks. To ascertain the effects of risk management on Mauritian banks. To determine to which extent risk management strategies like Basel II, derivatives, stress testing and Asset and Liability Management are applicable in Mauritian banks. To analyze the factors which improve Risk Management Practices in Mauritian banks and the perspectives about Banking Risk Management. To explore the reasons for managing risks in Mauritian banks. 1.2 Statement of the Problem There is an increasing awareness that the gradual intensification of banking risks impacts adversely on banking transactions which raises the concerns for risk management. The basis concern of this study is whether the Mauritian banks are using diverse risk management tactics and whether they are able to cope with the present and prospective challenges of risks and risk management requirements. 1.3 Significance and Contribution of the Study Bank managers can be conversant with divergent risk management techniques, their implications, effects and their relevance in banks through the practical aspects of risk management application. Bank managers can analyze the mechanisms resulting in the increasing level of risk exposures. Business administrators and management practitioners can use this study as guide to design efficient measures to mitigate risks in the process of developing marketing tactics. 1.4 Structure of the Project Chapter 2 elaborates on the literature review related to the risk management. Chapter 3 uncovers the general overview of Mauritian Banking Sector. Chapter 4 focuses on the detailed research methodology that has been used. Chapter 5 discusses the analysis and interpretation of the Mauritian banking risk management information. Chapter 6 probes on the recommendations to improve Risk Management practices in Mauritian banks. Chapter 7 concludes the whole findings of the project. PART 1- THEORETICAL ASPECTS 2.1 Introduction The advent of technology, globalization and the competition has encouraged banks in risk taking activities exposing banks to risks. Regulatory and supervisory institutions have emphasized the need for banks to enhance their risk management practices. Risks arise from the probabilities of the occurrence of losses and usually emerge from the internal and external banking transactions. 2.2 Banking Failures determinants The past decades have encountered numerous bank turbulences where high costs have been incurred on both local and overseas level (Gaytà ¡n and Johnson 2002, p.1), hindering the credit facilities, minimizing investment and consumption and generating bankruptcy cases (Demirguc-Kunt and Detragiache, 1998a, p.81). According to them, the expensive monetary policy was used to force the sound banks to sustain the failures of insolvent banks which dissuade risk management. Fluctuations in interest rates post abolition of Brettons Woods System, higher banking competition, the non existence of intermediation margins, unskillful lending and investment tactics (Hellwig 1995, p.724-726 ) , the diminishing role of the oligopoly rents as stated by Gehrig (1995 cited Hellwig 1995, p.726 ), the lower level of capital reserves in banks, companies high reliance on banks for external finance mentioned by Rajan and Zingales (1998 cited Randall S. Kroszner 2007),systemic shocks caused by credit risks, the inability to diversify loans, trade deterioration and decrease in asset prices caused bank failures argued by Gorton (1988 cited Demirguc-Kunt and Detragiache1998b, p.85). Moreover, regime changes like financial repression, liberalization and severe macroeconomic conditions encourage the entry of inexperienced players and preference for the acquisition of useless loans stated by Honohan (1997 cited Gaytan and Johnson 2002, p.4) have generated banking turbulences.   Non-performing loans increase where the asset returns are less than the returns to be paid on liabilities. Banks borrow in international currency and lend in local currency where the latter depreciates if the foreign exchange currency risk is shifted to local borrowers if they loaned in foreign currency. Banks buy insurance protection which encourages risk taking activities in the absence of prudential supervision and regulation. Bank managers engage in fraudulent actions by taking a portion of money for their personal use (Demirguc-Kunt and Detragiache 1998c, p.85-87). Diamond and Dybrig (1983 cited Demirguc and Detragiache 1988d, p.86) argued that banks portfolio assets can worsen and depositors believe that other depositors are removing their money. Obstfeld and Rogoff (1995 cited Demirguc and Detragiache 1988e, p.87) mentioned that an anticipated devaluation could occasion bank runs in local banks and these deposits are shifted overseas and render the domestic banks without l iquidity. 2.3 Banking risks alsamakis et al (1996 cited Young 2001, p.57) argued that risks can be classified as pure risks and speculative risks. Pure risks which embody market risks, credit risks, interest rate risks, liquidity risks, country risk and settlement risk are associated with the probability of occurrence of loss or no loss and can be curtailed by risk management strategies. However, speculative risks comprising of operational risks, technology risk, reputational risk, compliance risk, legal risk and insurance risks involve an opportunity for gain or loss which can be hedged. 2.3.1 Credit Risks These major risks occur in banks when the borrower defaults on his obligation to reimburse the principal amount and the interest charged of the loan. Credit risks consist of three types of risks like (Arunkumar and Kotreshwar 2005, p.9): Transaction risk emerges from the fluctuations in the credit type and capital depending on how the bank underwrites individual loan transactions. Intrinsic Risk is risk prevailing in some institutions and on granting credit to some firms. Concentration risk is the average of transaction and intrinsic risk within the portfolio and encourages granting of loans to one borrower or one firm. 2.3.2 Interest rate risks Koch (1995 cited Beets and Styger 2001, p.9) defined interest rate risk as the future changes in a banks net interest income and market value of equity due to changes in the market interest rates. Kropas (1998 cited Martirosianien) enumerated three types of interest rate risks like: Reappraisal risk stems from the diverse periods of assets and liabilities Profitableness curve risk entailselements affecting the reappraisal risk. Basic point risk concernsflawed association between the receivable and payable interest rate. Option risk is where the benefits of options can adversely affect the banks equity. 2.3.3 Liquidity risks Liquidity risks occur when the banks are unable to meet the demands of the depositors because of lack of funds and the illiquid assets resulting eventually in bank insolvency. Credit, strategic, interest rate and reputation risks build up liquidity risks (Gaulia and Maserinskieno 2006, p.49). 2 types of liquidity risks are (ADB Report 2008, p.9): Funding liquidity risk is the potentiality to obtain money via the sale of bank property and by borrowing. Trading Liquidity risk arises from making a constant entry in market activities and dealings. 2.3.4 Market risks These risks arise when the value of the financial products changes negatively and consist of currency risk, interest rate risk, equity or debt security price risk (Gaulia and Maserinskieno 2006, p.49). 2.3.5 Operational Risks Basel Committee (2004) which imposes a capital charge defined operational risks as the risk of direct or indirect losses resulting from inadequate or failed internal processes, people, and systems, or from external events. This definition includes legal risk, but excludes strategic and reputational risk. 2.3.6 Reputational Risks These risks emerge when the number of clients decreases as they hold negative perspectives about the quality of services offered by the banks. 2.3.7 Strategic risks Strategic risks arise when bad decisions and projects are undertaken to develop a special system in banks due to the lack of resources, technological tools and the expert staff. 2.3.8 Foreign Exchange Risks These risks come when the prices of the currency fluctuate when engaging in foreign activities. There are 3 types of foreign exchange currency risks. (Deloitte Treasury and Capital Markets 2006) Transaction risk entails the future of original cash flows like imports and exports. Translation risk is concerned with the disparities between foreign exchange encountered when again transforming a foreign exchange value into the functional currency of the company concerned. Translation risks are usually converted into transaction risks on a late basis as earnings are repatriated or assets and liabilities are realized. Economic risk arises when indirectly exposed to buying and selling of goods from someone who buys goods overseas. 2.3.9 Systemic risks The bank cannot collect money from an organization it is dealing owing to the political, economic and social conditions prevailing in the country where the organization is situated. Country risk includes political, economic risk and transfer risk (National Bank of Serbia). 2.3.10 Legal Risks Legal Risks are losses incurred when the bank is sanctioned by a court for the non-compliance with the lawful rules and regulations and on not fulfilling its obligations towards the other parties (National Bank of Serbia). 2.3.11 Financial Fraud There is mismanagement of money and fraudulent actions from the members of the banks who embezzle some deposited money and when there is lack of security controls. 2.4 Bank risk management methods Greenspan (2004 cited in Lam 2007, p.3) said that It would be a mistake to conclude..that the only way to succeed in banking is through ever-greater size and diversity. Indeed, better risk management may be the only truly necessary element of success in banking. 2.4.1 Risk Management in Banking Sector Flaker (2006, p.4-8) proposes three methods: 2.4.1.1 Risk Identification The board must set the risk profile of the bank and identify the risk-return tradeoff. The bank should understand and identify types of risks exposures, their sources and their effects on the overall banking stability. 2.4.1.2 Risk management and reduction Risk management and minimization embody the following: (1) Allow loans after considering their financial status of the borrowers. (2) Comparison of the expected risks with the actual ones to diminish the loan losses in a bigger portfolio. (3) Loan losses will decrease due to diverse borrowers in the lending transactions. (4) Actual risks can be compensated through the opposite movement of other risks in particular financial activities. (5) Insurance negotiations can be used to protect against diverse risks. 2.4.1.3 Risk Management System This flexible system encompasses the combined structure of identification, evaluation and risk mitigation techniques. The Board must set up a strong risk culture and an effective governance structure where the risk management system aligns with the existing structure of the bank. Risk management procedures are possible when retaining higher level of capital to cushion the risks. Furthermore, the risk management functions comprises of: (1) Delegation of responsibilities to each banking segment (2) Auditing system to deal with the internal control processes and proper execution of risk controls (Nikolis, 2009). (3) Ongoing reviews, reporting, updating and the control of risk management system must be executed to ensure that they tailor with the banking aims (4) Training courses gaining know-how about the design of the risk management system and risk models must be offered to avert banking failures. (5) Establish rules and regulations and take necessary actions to those who contravene with them regarding risk management practices. (6) Participation of the banks, regulatory and supervisory bodies where information is disseminated externally and internally in the banks (Kroszner, 2007). 2.4.2 Asset and Liability Management Asset and Liability Management entails the design of organizational and governance models which define the risk approaches subject to the banking operations (ADB 2008, p.10). 2.4.2.1 ALM operations are as follows (ADB 2008, p.10-12): ALM ensures a risk and return management process where the combination of expertise and risk appetite is needed. ALM unit manages bank risks either through a passive or aggressive approach thus increasing its value. ALM unit investigates upon the static and dynamic mismatch; sensitivity of net interest income; and, market value under multiple scenarios -including under high stress. The net interest income evaluates the sophisticated banks operating results. It does not project the effects of risk compared to the economic value which can identify banking risks but is inaccessible to most banks. 5. Funds Transfer Pricing eradicates the interest rate risks by securing a spread in loan and deposits by allocating a transfer rate that mirror the repricing and cash flows of the balance sheet. Liquidity risks can be managed like diversification of financing sources, correlate the liquidity risks with other risks and use stress testing analysis. 2.4.3 Stress testing Practices Stress testing is another risk management strategy where Stress testing is a generic term used to describe various techniques and procedures employed by financial institutions to estimate their potential vulnerability to exceptional but plausible event (Kalfaoglou 2007, p.1). It uses statistical data analysis to risk management techniques, interpret and control the unfavorable outcomes. JP Morgan Chase has integrated stress testing equipment to manage and analyze the sources of possible banking risks, implement tests on the value of its portfolio, analyze its risk profile and contemplate the effects while applying diverse scenarios. An effective risk management scheme, stress testing project and bank staff expertise are requisite to tackle the statistical and economical fundamentals of stress testing with a data measurement tool. Board of directors should monitor the inputs of stress testing system (Seminar on Stress Testing Best Practices Risk Management Implications for Egyptian Banks 2007, p.2-3). Furthermore, the 2 types of stress testing strategies in banks like: (1) Simple Sensitivity Test deals with the rapid fluctuations of the portfolio value due to a risk factor on a short term basis. (2) Scenario analysis is used by large complex banks and is associated with a realistic and econometrics approach towards shifts in portfolio value due to changes in many risk factors. 2.4.4 Basel II Basel II published in June 2004, promotes banking supervision and emphasizes the specified capital requirements to cushion against potential losses. Basel II uses qualitative and quantitative requirements to monitor risk management strategies, to ensure compliance with regulations and reinforce corporate governance structure. The risk based supervision has enabled the supervisors to concentrate on the origins of banking risks. 2.4.4.1 Pillars of Basel II Pillar 1 entails capital needed for credit risk, market risk and operational risk. Moreover, banks under this regime must have a capital adequacy of 8 %. The methods for the computation of the capital charge to measure operational and credit risks (Ma, 2003)are: Basic Indicator Approach The size and capital requirements of the operational risk are estimated as a fixed proportion of the banks net interest income and non-interest income, measured as the average over the last three years. The Standardized Approach –The activities of the banks are allocated risk ratios weights related proportionally to the quantity distributed to every category. The aggregate capital requirements are the addition of all the requirements for the categories. Advanced Measurement Approach Computation of credit and market risks and the capital requirements are founded on the banks internal system for the measurement and management of operational risk for large banks An Internal Rating Based System The BIS stated that capital requirements must be founded on a qualitative and quantitative analysis of credit risk and must be used for diverse bank units. Founded IRB approach indicates that large banks should calculate probability default related to a borrowers grade to demonstrate the capital requirement level. However, under advanced IRB approach, these banks with an internal capital allocation can furnish the loss given default and exposure at defaults which are processed. Pillar 2 A supervisor must ensure that the bank has the adequate capital requirements to deal with risks. Banks estimate the internal capital adequacy by adopting quantitative and qualitative techniques. On-site investigation and ongoing reviews probe in capital adequacy. Pillar 3- Market discipline framework provides with detailed information about the banks risk profile to evaluate and report capital adequacy where risk exposures can be analyzed through quantitative and qualitative approach regularly. The risk based capital ratios and qualitative information about the internal procedures are needed for capital adequacy purposes. 2.4.5 Derivatives olatility of financial market, the liberalization and deregulation in the 1980s and 1970s has founded derivative markets (Hehn no date a, p.100). Derivatives are financial tools (like futures, commodities futures, options, swaps, forwards) whose returns, values and performance are derived from the returns, values and performance of the underlying assets. Hedging is covering against potential risk through an opposite position in the derivative markets. Bank International Settlements (2004 cited Bernadette A. Minton et al 2008, p.2) noticed that the quantity for derivatives has leveled from $698 billion in 2001 to $ 57,894 billion in 2007. Proper derivatives trading can insure against market risks and interest rate risks without retaining additional capital requirements in the balance sheet (Kaudman no date a, p.85). The determinants of derivatives use are banking size, balance sheet constituents, aggregate risk exposures, profitability, performance and risk taking incentives. Jason and Taylor (1994 cited in Hundman b, p.86) argued that speculation used with derivatives to make profitable returns can engenders more interest rate risks. Moreover, Tsetsekos and Varangis (1997 cited Roopnarine and Watson 2005a, p.9) argued that financial derivatives promote increase in resource allocation and increase the productivity of investments projects. Jorion (1995 cited Roopnarine and Watson 2005b, p.9) argued that in price discovery, market participants are offered information on balance prices that mirror the present demand on the supplies which enable effective decision making and reveal the position of the cash prices. Besides, liquid funds are increased and transaction costs are reduced and the futures market reflects the large transactions at prevailing prices (Roopnarine and Watson 2005c, p.10).   However, derivatives have generated enormous failures in Barings Collapse, Merill Lynch and Procter Gambler (Hehn b, p.101). Bank staff must be trained and educated about derivatives use. Derivatives trading can be constrained with the liquidity problems and legal uncertainties that emerged from the market price movement which is argued by Bhaumik (1998 cited Roopnarine and Watson 2005d, p.11). Pricing of assets becomes difficult if there is insufficient information about the derivatives use. Principal agent problem is aggravated (Roopnarine and Watson 2005e, p.12). The derivatives market must be regulated properly to avert fraudulent actions and insolvency. Partnoy and Skeel (2006 cited Minton et al. 2008a, p.2) claimed that derivatives intensify systemic risks as banks do not control the lending activities. Hunter and Marshall (1999 cited Roopnarine and Watson 2005f, p.28) argued that derivative markets attract investors whose private information are assimilated in the observable p rices and diminish the bid ask spread. The underlying cash prices reduce the transaction costs and the demand for money thereby affecting the operations of the monetary policy. Bedendo and Bruno (2009a, p.2-4) argued that credit transfer tools like securitization, credit derivatives and loan sales reduce regulatory capital requirements, motivate lending and enhance the banking liquidity positions. Moreover, they remedy the issues of information asymmetries as stated by Greenbaum and Thakor (1987 cited in Bedendo and Bruno 2009b, p.2). Duffee and Zhou (2001 cited Minton et al. 2008b, p.11) mentioned that credit derivatives are used if the loan sales or securitization techniques become expensive due to moral hazard problem and can shift default risk where information advantage is insignificant and retain some portion of risks where information advantage is huge. Banks use credit transfer tools as they have little access to inter-bank funding, huge funding expenses, low capital and want loan transfer (Bedendo and Bruno 2009c, p.8-9). CRT tools encourage banks to use originate-to-distribute models via aggressive lending occasions (Bedendo and Bruno 2009d, p.10) . Pricing of CRT tools is preferred by large banks having higher skills. Some loans sales have loan characteristics like small size, asymmetric issues and standardization convenient for securitization (Bedendo and Bruno 2009e, p.11). PART 2- EMPIRICAL REVIEW There is a growing literature that examines the relationship of banking risks with other many economic and financial variables. Moreover, this section describes the diversity of banking literature where different types of risk management strategies were tested and criticized. Even the links between different types of risks were experimented using banking information and models derived from other authors empirical work. Peek and Rosengren (1996) found that the large users of derivatives for speculation purposes are the troubled organizations using derivative information of 25 active banks in the United States from 1990 to 1994 in the US dummy regression model.   Banks are unable to track the risky aspects of these derivatives and guide their risk profile because of insufficient derivative information which could jeopardize the overall banking system. The onsite targeted examinations can enable banks to window dress their derivatives. Regulatory rules and formal transactions must be imposed on the banks taking unfavorable speculation and to constrain the moral hazard problem related to the derivative transactions. The use of speculative derivatives constitutes a stringent criminal penalty for breaching the established rules and regulations. Cebenoyan and Strahan (2001) used data of the sale and purchase of bank loans and those loans sold or purchased without recourse from all domestic commercial banks in the US from 1987 to 1993 in a regression model. They found that banks that engage in loan sales market to manage credit risks retained minimum level of capital which can be modified. Moreover, these banks retained more risky loans since they managed credit risks and were exposed to an unsafe position despite they endured lower level of risks compared to the other banks who manage risks without the loan sales market. Banks that employed the risk management techniques are more inclined to engage in risk taking activities. In fact, banks that manage credit risks lend to more risky loans depicting that complex risk management practices enhanced the bank credit position rather than minimizing the risks. Gatev et al (2006) investigated upon the presence of liquidity risk from both sides of bank balance sheets using some aspects of the Kashyap, Rajan and Stein (2002) model (that liquidity risks originating from the two fundamental businesses of banking promotes a diversification benefit) to analyze the link between deposit taking and commitment lending for large, publicly traded banks using regression analysis. Pooling deposits and commitment lending insure against banking liquidity risks and deposits activities insure against liquidity risk from idle loan activities. Bank stock-return volatility increases with idle loan transactions which is insignificant for banks with huge amount of depository dealings. The deposit-lending risk management becomes more reinforced when there is low level of liquidity and when troubled market participants deposit money in banks. Shao and Yeager (2007) used information of large publicly traded U.S BHCs from 1997 to 2005 using regression models to find the link between credit derivatives and their risk, return and lending issues. Banks buy credit derivatives to hedge against risks, to increase their equity and to compensate for the risky loan losses. However, they sell credit derivatives exposing themselves to risks to gain a premium charge. Moreover, the credit derivatives users enjoyed minimal returns and increase risks which are compensated. Their findings implied that on a general basis, the impact of credit derivatives on risk relies on the risk management strategies. Holod and Kitsul (2008) used panel data of stock returns from 53 U.S BHCs from 1986 to 2007. They found that after 1996, poor capitalized banks engaged in active trading transactions are more exposed to systemic risks compared to well capitalized banks. Banks cannot always have enough capital to cushion the market risks and must sell their illiquid assets or invest in the financial markets to compensate for the lack of capital to adhere to the market-based capital requirements. Capital requirements in Basel II do not help to reduce banking risks totally but contribute towards increasing systematic risks. Topi (2008) used a model of Allen and Gale (2004) where banks offer deposit contracts to ex ante identical, risk averse depositors who face heterogenous liquidity shocks for Bank of Finland which shows that the liquidity can impact on the banks motivations to minimize the default losses. The bank runs encourage the banks to avert the credit losses after the sub-prime mortgage crisis. However, the bank runs without a signal of the credit risks will reduce the banks willingness to curb the incidence of credit losses. The central bank can mitigate the propensity of liquidity stress for solvent banks rather than insolvent banks. In addition, this research provides an area for further research where the policy interventions and financial market innovations can be integrated in the model to identify the impact on banks motivations. Achou and Tenguh (2008) used regression model for Qatar Central Bank by executing a time-series analysis of financial data from 2001-2005 to examine the correlation between profitability and loan losses. They showed that effective credit risk management improves the financial result of the bank with the aim to secure the banking property and to work in the welfare of the market participants. Besides, their study revealed that credit risk management infrastructures are used to minimize the credit losses. Banks with efficient credit risk management system have insignificant loan default ratios, good revenues, minimal non-performing loans and are able to tackle credit losses. Minton et al. (2008) investigated the use of credit derivatives using U.S BHCs (assets overtakes $ 1 billion) and non-missing data on credit derivatives use from 1999 to 2005. Few companies use credit derivatives for dealer activities rather than for hedging against default losses. Credit derivatives use is constrained because the liquidity of credit derivatives market is favorable for investment grade companies since they can use derivatives to insure against the default losses. Therefore, the illiquidity of credit derivatives market affects the non-investment grade companies as they need confidential information for loans where higher cost of hedging will dissuade banks to hedge. Nevertheless, the bank borrowers get loans at a cheap price and banks are more on a competitive stance with the capital markets to provide loan facilities if the credit derivatives can help bank to retain capital. Credit derivatives can only promote the financial health of banks if they generate lesser ban king risks. The sub-prime crisis prior to 2007 has shown that the dealer activities via the credit derivatives contain many risks and in 2008 generated systemic risks. This study provides an avenue to assess the risks posed by credit derivatives when engaging in dealers transactions dealers. Bedendo and Bruno (2009) differentiated between the application of loan sales, securitization and credit derivatives for a sample of US large domestic commercial banks (total assets greater than one billion USD) for June 2002-2008   They found that the most CRT users employ conservative tools and large international banking corporations utilize credit derivatives. They detected that highly capitalized banks with less risky portfolios purchase credit derivative protection to hedge against capital inadequacy.   Moreover, banks with riskier loan portfoli