nature of racism

Racism, though long deemed to have been eradicated in modern society, is unfortunately more ingrained than once thought. It is not only centralized in America, where slavery was once a dominant issue, but it has roots everywhere in the world that humans have reached. As George Orwell recounts in his narrative, â€Å"Shooting an Elephant,† racism feeds upon numerous psychological factors. These are the same psychological factors that Memmi also outlines in his essay, â€Å"Racism and Oppression.† The intersection of their works, which is seen through tracing the psychological foundations of racism, provides a framework in which to examine this universal condition. The first point of intersection between the two works is in Memmi’s declaration that â€Å"to be big, all the racist need do is climb on someone else’s back.† This someone else is the most obvious victim of racism: the poor, the weak, and the unfortunate. The racist does not try to oppress those who are known to be â€Å"strong,† as they know they cannot step on these people on their way to perceived superiority. Instead, they turn their attention to those who are already defeated, to the people who have all but given up fighting. These were the people who were the perpetual victims, never the victors. Hence, they focus all their racist attention on the people who, with very little effort, acquiesce to them, as they have already been shown to be defeated time and again in the annals of history. And indeed, this is how the British came about to conquer the Burmese. When the elephant began ravaging the town, Orwell was called to restrain the animal, as â€Å"the Burmese population had no weapons and were quite helpless against it.† If the people had no weapons to protect themselves from a creature they were in daily contact with and one that they knew could very well erupt in a rage anytime, then hopes for any sort of sophisticated weaponry to ward off their invaders is dim. Furthermore, these people were very poor, living in â€Å"a labyrinth of squalid bamboo huts, thatched with palmleaf.† Contrast this with the homes of the Europeans back in their own country, which utilized advanced architectural technologies and materials. With the flimsy materials the Burmese used to build their houses, the Europeans knew that they were a backward people, one that history left behind in the past. As such, they realized that it would be easy to conquer and subjugate the Burmese. However, Memmi’s point is refuted in Orwell’s realization â€Å"of the real nature of imperialism [and] the real motives for which despotic governments act† as he sets out to shoot the elephant: †¦[The crowd was] watching me as they would watch a conjurer about to perform a trick. They did not like me, but with the magical rifle in my hands I was momentarily worth watching. And suddenly I realized that I should have to shoot the elephant after all. The people expected it of me and I had got to do it; I could feel their two thousand wills pressing me forward, irresistibly. And it was at this moment, as I stood there with the rifle in my hands, that I first grasped the hollowness, the futility of the white man’s dominion in the East. Here was I, the white man with his gun, standing in front of the unarmed native crowd – seemingly the leading actor of the piece; but I reality I was only an absurd puppet pushed to and fro by the will of those yellow faces behind. I perceived in this moment that when the white man turns tyrant it is his own freedom that he destroys†¦To come all that way, rifle in hand, with two thousand people marching at my heels, and then to trail feebly away, having done nothing – no, that was impossible. The crowd would laugh at me. And my whole life, every white man’s life in the East, was one long struggle not to be laughed at. The white man, in this scenario, is the one who is now being controlled, manipulated, and even, in a way, subjugated by the Burmese. Through colonizing, they themselves have become the ones colonized. The Burmese people, instead of being the ones stepped upon by the British, have become the ones who are stepping on the backs of these â€Å"historically strong† people. As they know the British are fastidious about cultivating an appearance of power and authority, the Burmese exploit this weakness for their own advantage. A second point that appears in Orwell’s literary work is that there exists â€Å"the surprising racism practiced by the oppressed man himself.† In theory, people who are victims of abuse and oppression should bond together, for it is through one another that they are able to weather the cruelty and subjugation imposed on them. In number, they should find strength. In practice, however, this fails to hold. Even the people who have been victims of racism can inflict and carry out the same kind of abuse on others and becoming racists themselves. In â€Å"Shooting an Elephant,† Orwell illustrates this reverse form of racism by depicting the various ways in which both he and his fellow Europeans were insulted and jeered at by the Burmese. Being a â€Å"sub-divisional police officer of the town,† Orwell became the favorite target of the anger, ire, and anti-European sentiment of the Burmese. This is because he was extremely visible, going around the town as he went about his duties. Furthermore, it was his job to enforce the rules, which are made by the British Empire.   Though the Burmese had no â€Å"guts to raise a riot,† they certainly carried out their insults in more personal ways. One time, during a soccer match, Orwell was tripped by a Burmese player and the referee, another Burmese, simply looked the other way. The crowd roared with laughter, and the Burmese players, knowing they could get away with such an insult, continued tripping Orwell on the football field. As a result, whenever he was spied on the streets, insults were continuously thrown at him when he was already several meters away. Finally, Memmi points to a universal conclusion about racism, that â€Å"everyone, or nearly everyone, is an unconscious racist, or a semi-conscious one, or even a conscious one.† It encompasses people from all cultures, races, and religions, including the most-liberal minded man, the most politically sensitive nation, and the highest-educated woman who do not necessarily fit into the mode of the stereotypical racist. Different people approach racism differently, offering differing logical reasons and interpretations, though it always boils down to the same thing – we are all guilty of being racists in one way or another, overtly or covertly. Orwell’s â€Å"Shooting an Elephant,† by presenting ideas that side with and vie for the Burmese people, can seem to be anti-racist. Indeed, Orwell explicitly states his disgust with the empire: â€Å"theoretically – and secretly, of course – I was all for the Burmese and all against their oppressors, the British.† Yet, Orwell is not the morally scrupulous anti-racist he paints himself to be. Just a few lines after this declaration of being â€Å"all for the Burmese,† he describes them as being â€Å"evil-spirited little beasts who tried to make [his] job impossible.† His â€Å"greatest joy in the world,† on the other hand, â€Å"would be to drive a bayonet into a Buddhist priest’s guts.† These sentiments, he said, were simply â€Å"the normal by-products of imperialism†¦Ã¢â‚¬  On the other hand, if Orwell was one of those people whom Memmi described as being an unconscious racist, his fellow British were the fully-conscious types. When Orwell was discussing with some other officers his act of killing an elephant for killing a coolie, the younger men in the group responded that he was wrong for doing so, â€Å"because an elephant was worth more than any damn Coringhee coolie.† For them, the worth of a human life, especially one of their colonized victims, is negligible compared to the worth of an elephant. It is simply another way of saying that the life of the people under their rule was not important. Orwell and Memmi both present the universal problem of racism. Though they do not agree on all points, they do agree that racism comes at a huge cost, both for the racist and the victim.

Background and Motivation Essay

The terms â€Å"corporate blog† or â€Å"business blog† have appeared very often in both of newspapers and academic journals. Increasing attention has been paid in understanding this new phenomenon. According to the Investor Business Daily, â€Å"there are 45% USA’s largest public companies have corporate blogs. † (where is your citation – is this also Klosek? ) Business Week has proposed the following: â€Å"Corporate blog is a blog used by the company to reach some goals. It helps businesses communicate internally more cheaply and effectively than workflow management software and e-mails. † A corporate blog can be one of the more successful popular communication tools after the E-mail, ICQ and MSN. In 2006, Business Week Online issued that â€Å"A Weblog (or blog) can be a powerful marketing tool, but it can also expose a business to a legal minefield. † As reported by Jacqueline Klosek, â€Å"Blogs can be used to market a company’s products and services, facilitate communications with clients, and even counter negative publicity† (Klosek, 2006). Several studies have pointed out the advantages of employing corporate blogging, citing that corporate blogging may be a tool for search engine marketing; a means of building good relationships with the customer; building of a company’s reputation; helping to put human voice to a company; serving as a way for employees and customers to communicate; and a tool for directly and immediately getting the customer’s feedback. There are still many threats that may hinder the adoption of the corporate blog, such as legal impediments with regards to violation of intellectual property rights and mismanagement leading to an eventual downfall of the organization; the disclosure of trade secrets can jeopardize the blogger’s career since this problem may cause his termination from the position, and also â€Å"Careless statements posted on a company-sanctioned blog can come back to haunt the company through litigation and other avenues† Klosek (2006) stresses. Since the study and research in corporate blogging phenomenon is still in its early days, scholars who have conducted empirical studies only focus on the benefits and risks when adopting the corporate blog, or the motivation behind creating corporate blog. It’s lack of analyzing the existing utilization and the effects of corporate blog from a systematic theoretical perspective. the DOI theory (Rogers, 1995, 2003) becomes mature, it can be applied in explaining how and why an innovation can be widely adopted and diffused. In order to find out the reasons indicate why corporate blog as a new innovation has been widely adopted and successful diffused, the DOI theory can be an effective framework for analyzing corporate blogging phenomenon. Thus, this paper aims to determine why the corporate blog as a new innovation is being widely adopted and used by the both the individual blogger and various IT organizations; the motivation in adopting blogging; the benefits of the corporate blog to organizations; and the reasons for its success. The research also tries to explain how and why the corporate blog is welcomed and has become a popular and successful new innovation, and the compatibility of its utilization with the existing values of its users. Thus, the author has conducted an empirical study in order to answer these problems from the Diffusion of Innovation theory (DOI) perspective. IT industry companies have been selected as samples for this study.

Business Communications- Interoffice Memos and the Related Ethics Essay

Business Communications- Interoffice Memos and the Related Ethics - Essay Example Having previously worked with Susan, she is a punctual, committed, hardworking lady to work with and expect the best from her as a member of the committee. It will be a pleasure to have Mark and Kathy included in the committee for their first time and I hope them to be committed and participate to their level best. The party will include all the members of the board, team members, employees and all the other members of staff who have had an association of over three years of the company.Members will interact with the officials of the company and may open valuable information and new opportunities as well. Am looking forward to see you during the meeting, Thank you. One of the primary issues designated in the email is budgeting of the party requirements. For a party event, this is the most significant step as the organizer and for the committee in general as it determines the success level of the event. Reminding the other members of the committee to be punctual and to perform to their level best is significant information included in the email above as it determines whether the objectives of the party will be met. Considering that the party will be a big event for all the members (300 members), there is need to budget and decide on a more suitable place. It is advisable for all the members of the committee to brainstorm on a suitable place in advance and thus make a comparison during the meeting. The venue may include a beach hotel, a restaurant or a park provided it can host at least 300 members and above and within the budget limits. From my own idea, I thought of including some chips, veggies, cookies, sandwiches, popcorns, crackers, bites of fruits, crackers, cheese, and cupcakes. You may also add some other types of food so that we will have a wide range to choose the best and the most enjoyable for the party (Taylor & Gartside, 2004). We will not consider choosing the diet that our members and guests have allergies

Ronald Wilson Reagan Research Paper Example | Topics and Well Written Essays - 1500 words

Ronald Wilson Reagan - Research Paper Example Personal Life: Ronald Reagan, the son of John Reagan, was born on February 6, 1911 and died on June 5, 2004. In his young years he used to live with his family in Tampico, but a few years later they went to live in Chicago. Initially his father was the supporter of Ku Klux Klan, the political group of America, but when he went through financial crises he turned against political parties and started negotiating against them . This situation created more problems for him and his family. As a result, both son and father became obsessive followers of Democratic Party headed by Franklin D. Roosevelt. Ronald was sent to Doral Senior High school in Dixon. He was a brilliant student and secured good position in class. He was interested in studying economics and sociology. Apart from studies he was highly interested in sports, especially in swimming and football. He also gained sports scholarship because of his outstanding performance in annual football match at Eureka College. After completing studies at high schools, he got job at the Davenport radio station as a sports commentator . A few years later he joined another radio station in Des Moines, where he gained fame and became one of the most famous sports announcer of the state. He got chance to work in Hollywood movies as well and he appeared as a leading actor in many hit movies. The famous movies in which he performed include Hollywood Hotel, An Angel from Texas, the Santa Fe Trial, the Voice of the Turtle and many others. He worked in movies not just to make money or for entertainment. When the Second World War started he ma de such training films for captains and other army men that help them defense the country3. Meanwhile, during the making of the movie Brother Rat he met the Hollywood actress Jane Wyman and they get married in 1940, but after eight years of marriage she left him because of Ronald`s involvement in the war. They had two children, Maureen Elizabeth and Michael Edward. When the parents were separated the mother got custody of both the kids. In 1947 Ronald was elected the leader of Screen Actor Guild. During his occupation of the post of a leader of the Screen Actors Guild in 1951, Nancy Davis, another beautiful actress of Hollywood, tried to approach him. Finally, they got married in a small church on March 4, 1952. They were blessed with two children, Patricia Ann in October 1952 and Ronald Prescott in May 1958. Governor of California: Before World War he remained passionate supporter of Democratic party, but later he changed his affiliation and joined Dwight Eisenhower`s Republican Pa rty. Soon he became a prominent member of the national political party. With the help of smear campaign, he won an easy victory and was selected as a governor of California4. After being announced a governor he worked with dedication, specifically for students, and gained fame in no time. Michael K. Deaver, another important political figure, took responsibility of scrutinizing Reagan`s presidential campaign. The main problem was that Reagan was sixty-eight years old by the time present government considered him as a suitable candidate for becoming the next president of America. His

Should countries control the internet Essay Example | Topics and Well Written Essays - 1000 words

Should countries control the internet - Essay Example Along with the effects of internet addiction on children, it also affects the privacy of the users of the internet in terms of hackers’ attacks. Although information technology professionals have been taking special measures to stop network-based unauthorized access to the personal computers of people, the issue of hacking has not resolved as yet. In this regard, some control should be there at the government level on the use of internet. In this paper, we will discuss a few harms associated with the free use of internet to conclude whether countries should control the use of internet or not. Uncontrolled use of internet affects academic progress of children as it shifts their attention and focus away from studies to the pornographic material available on the internet. These days, there is hardly any restriction policy that can prevent children from accessing negative content. The growing age of children is very critical for their proper mental, social, and physical development. Children are usually very eager to know about sex, therefore, they mostly use internet to get information about it. Therefore, it has become the need of today for the governments to have some control on the use of internet so that children are not exposed to harmful stuff. Information security has always been one of the main issues for people and organizations adopting the use of information technology. With the rapid pace of technological advancements taking place in the field of computer sciences and information technology, ensuring information security is also becoming more and more difficult due to more organized intrusion attempts and data retrieval attempts by hackers. Although many new measures have been introduced to make information security reliable and more protected, but they have been unable to resolve the information security issue. Therefore, it is essential to design a reliable system that can minimize the chances of unauthorized

The Relationship Between Masculinity And Popular Music In 2005 Essay

The Relationship Between Masculinity And Popular Music In 2005 - Essay Example As society evolves and changes, so does the cultural conduit of popular music reflect these changes. Popular music has aways been interconnected to notions of sexuality, from when The Beatles caused a hormonal rampage in adolecent girls, through to the current day, when complex notions of sexual identity find themselves played out on the public stage of mainstream music. But sexual identity in the mainstream perception is not an absolutist concept - even when it is isolated within a particular time frame. Music is also tied to geographical influences and class distinction - and a kind of cross-fertilisation can occur when a brand of sexuality often tied to a particular strata of society finds itself in the broader spotlight - almost becoming fetishised by an external fascination with the unknown. Connell & Gibson (2002) observe that "More than most other performers, Bruce Springsteen sought to emphasise the relationship between place, community and identity. His songs are primarily a bout working-class issues, evoking notions of community and local identity: ‘the effects of poverty and uncertainty, the consequences of weakness and crime†¦ the murky reality of the American dream’ (Frith 1988). They honour yet transcend ordinariness, though they have been criticised for sexism (Moss,1992)."

Partnership and inter professional practice Essay

Partnership and inter professional practice - Essay Example Additionally, an overview of the key principles governing partnership and interprofessional practise, its positive and negative aspects, and the importance of working effectively within a team, are encompassed in the paper. A study was conducted on a 33-year old homeless British woman who had been admitted for treatment in a psychiatric hospital due to severe depression and a series of suicide attempts as a result of the past abusive relationship she had gone through. The preliminary findings suggested that the subject had been dependent on drugs and alcohol which made her even more vulnerable to exploitation. She also possessed erratic and antisocial behavior, suffered from sleep disturbances and was prone to self inflicted pain. There was also limited information on her family background. To further lay premise on the case study, it is imperative to discuss the component of interprofessional practise (IPP). IPP have been referred to as a practise where several professionals of diff erent expertise and functions work together as team to render improved services on health care. The focal point of this is the significance of pooling practitioner competencies and working in partnership with other sectors of the society to generate positive results that would be beneficial to the healthcare patients overall (Barr 2005). One of the strong points of IPP is that the treatment framework of the team may effectually vary as the requirements of the patient change. Practitioners may even work beyond the scope of their professions. To cite an example, practising nurses or medical assistants can carry out the duties of a general physician as the need arises. IPP focuses on the wellbeing of the patient rather than the individual practitioner’s line of work (Stone, Waller, Smith, Fuller, Bull, & Playford 2007). IPP may involve medical practitioners such as physicians, nurses, therapist to social workers to policy makers (Stone et al 2007). The contributing factors for t he success of IPP are cooperation, commitment, assertiveness, shared responsibility, communication, autonomy, coordination and governance. Basically, these elements refer to teamwork, dedication, open expression of ideas, the ability to deduce or see a health situation from the point of view of other health practitioners, and efficient organisation (Lindeke and Block 1998). Based on the case scenario, the composition of the team which may address the issues of Marilyn Hall are as follows: general physician, mental health nurse, clinical psychologist, psychiatrist, psychotherapist, occupational therapist, social worker and spiritual adviser. It was noted that the subject suffered physical abuse from her past relationship and aborted pregnancy; thus, a general checkup is recommended to evaluate her health condition. Seeking the service of a psychiatrist for counseling and treatment of severe depression is also recommended. Consultation with a clinical psychologist is also advised sinc e the subject had committed several suicide attempts. Professional help from a psychotherapist is needed to address her dependency on drugs and alcohol. The mental health nurse may provide assistance to ensure that the needs of the subject are effectively provided. The social workers can provide the necessary support outside the institution after the subject was discharged. Occupational therap

Cosmological Argument. The forms of cosmological arguments Essay

Cosmological Argument. The forms of cosmological arguments - Essay Example Cosmological arguments usually strive to explain the existence of God in many forms. Many philosophers in the past, from Aristotle and Kalam to Aquinas, tried to argue the existence of God in different ways (Taliaferro 21). The several forms of cosmological arguments usually explain the existence of God in the following ways: that there is the existence of things, that it is possible for the same things not to exist and that those that are non-existing, yet they exist, must have been caused to exist. On this note, it is an illogical fact that things cannot bring themselves into existence since they must exist to bring themselves into existence. The argument shows that an infinite number of causes that can bring something into existence cannot exist. This is because there is no initial cause of an infinite regression of causes, meaning that the cause of existence is not there. Cosmological arguments try to prove that the universe has a cause since it exists. This shows that all things have an uncaused cause, and the uncaused cause must be God (Craig and Moreland 52). The most successful cosmological argument is Thomas Aquinas’ argument of contingence. Aquinas (1225–1274) was a theologian born in Medieval Europe. ... One has to use all the five arguments since all of them form the basis of his argument (Craig and Moreland 56). The Argument from Motion Using the works of Aristotle, Aquinas through observation, concluded that any moving object is able to move because another supreme object or supreme force makes it move. He observed that there must have been a mover that was making the objects move. This mover must have been unmoved and it must have been God. Aquinas believed that of all the things that were moving, none could move itself. This means that nothing can move itself. He also noted that in order that all objects to be in motion, the first object to be in motion needed a mover. He also said that the mover was unmoved and was God and that movement cannot last forever. Aquinas believed that all things must be at rest and motion is unnatural. According to him, motion is any change that occurs, for example, growth, rotation, etc. He concluded that a supernatural power must have put the state of motion (Craig and Moreland 61). The Argument of Causation of Existence In the argument of causation of existence, Aquinas said that it was logical that nothing can create itself. There must have been a previous object, which created it. This first object must have been uncaused cause and it must have been God. He concluded that causation of all things that exist, are other things and that nothing can be the cause of itself. The things that cause other things to exist cannot be an endless string of objects; therefore, the first uncaused cause is God (Craig and Moreland 63). The Argument of Contingence The argument of contingence is the modal argument. Aquinas argued that an uncaused

Social, Political, and Organizational Factors Essay

Social, Political, and Organizational Factors - Essay Example Though Hispanics constitute the major ethnic minority populace in the US, they have no access to health care provisions, and appropriate healthcare system In this regard, two important factors are to be considered (1). Hispanics are less expected to search for and obtain health-care services and system, which might donate to their inferior health status and high rates of mortality and morbidity (2). To evaluate dissimilarities in access to the most appropriate health-care facilities and precautionary services among non-Hispanics and Hispanics, with CDC examined 2001--2002 information from Behavioral Risk Feature Surveillance Scheme (BRFSS) surveys. 2. Briefly discuss the social and political influences behind this disparity. Does this population have one or more of the risk factors that Shi and Stevens (2010) identify? Offer evidence that supports your assertions. Social and political factors affect Hispanic’s admittance to preventive services as well as the major influences behind the disparity. Disparities in making use of various preventive services by ethnic or racial characteristics have been recognized; minority inhabitants, such as Hispanics, are less expected than non-Hispanics in getting preventive services. This report reveals that these disparities in access to screening practices and health-care among Hispanics and non-Hispanics still persist. Shi and Stevens (2010), identify that population as a whole have one or more risk factors. The health of a population is affected by its economic and social circumstances and the health care services it obtains. On an average, the socioeconomic position of Hispanics in the US is significantly lower than that of non-Hispanic whites. Hispanics also face various barriers in obtaining health care services of extremely high quality. Some of these obstacles occur due to their low socioecono mic position; others obstacle are due to various specific aspects of the Hispanic

Can Religion Be Studied Academically Essay Example for Free

Can Religion Be Studied Academically Essay The academic study of religion isn’t a means of just learning scriptures or passages from a sacred text like the Bible. It is a more complex process and can be considered multidisciplinary – it can include art, literature, linguistics, history, philosophy, psychology, sociology and much more. Religion can’t be studied without knowing what we are trying to study, and while some would argue it just doesn’t exist, the similarity among the diverse religious belief systems around the world are strong enough to justify a comprehensive field study encompassing the factors listed above, some of which fall into Livingstone’s ‘seven ways of studying religion’. However, to effectively study religion in an academic way, it is important to include critical analysis, which means it is important not to be biased towards your own beliefs. By doing this you can become more culturally aware of other faiths and beliefs, and thus obtain a greater understanding of religions. Literary criticism plays an important role in the academic study of religion. Religion in the theological way is all about the teachings of a particular sacred text. The Bible for Christianity, the Quran for Islam and Sutras for Buddhism, for example, all contain the teachings and laws of the respective religions, which is essentially how people can understand religion in the first place. Livingstone, in his theories on religion, says questions are the key to studying and understanding the meaning of sacred texts. Is it reliable; who was the author; when was it written and where; how has the work been received, interpreted and passed on? These are the questions that need to be answered before a true understanding of religion can be obtained, and who better to answer them than a literary critic, according to Livingstone. The relationship between religion and language also relates to this idea of literary criticism. Language in religion doesn’t often function like it does in everyday life – it is not found at the surface level of words or signs, according to Livingstone. Understanding language and how it is used in religion provides insight, but it also stretches to include the nature and function of language itself. Because of religion’s role in human cultures, it is impossible to comprehend the flow of history without some basic grounding in a variety of religious beliefs. Livingstone says it would appear obvious that the historical study of religion has to do with establishing what role religious experience and ideas play in the lives of individuals and communities. You only have to look at the Bible and see the Old Testament is dated in years ‘before Christ’. Livingstone gives an example of the Protestant Reformation. The causes of the Protestant Reformation have been a topic of contention among historians, and the debate illustrates both the importance of history in gaining a fuller understanding of that event in western history, and the difficulties in proposing a single casual explanation in history. But the notion of history and religion can be put a little more simply – religious traditions provide structure to the world and provides people with a sense of where they fit in, which in turn affects choices today, for example decisions about politics. The philosophical scrutiny of religion is one of the oldest and most instructive ways of examining religious experience and belief, according to Livingstone. In this century philosophy’s relation to religion is to analyse the uses of religious language and to test its logical status and meaning. It asks whether a religious expression is simply performing an action or evoking the emotions. Livingstone says philosophers believe much of the problems with religion stem from these confusing uses of language. Over the centuries and spanning different continents, the notion of philosophy has remained significant in several religious traditions, which emphasises the importance of it in an educational way – In India, philosophy has remained associated with historical developments in Hinduism and the same goes for Buddhism in Asia. The way in which religion interacts within a social dimension is also a significant element to studying religion. Sociologist, Max Weber, demonstrated that certain forms of social life and behaviour could deeply reflect the religious belief and practice of society. For example: Weber analysed how the new Protestant ethic, which came with the Reformation of the 16th century, proved to be decisive in shaping the spirit of modern capitalist society. All religions have a concept of what it means to be a member of a religious society, how it should function, how it should be organised, and how the society relates to the outside world. Therefore it is important to have an understanding of the sociology behind religion, especially in the instance that culture and religion become hard to distinguish between. It is understood that religions offer critiques of contemporary society based on concepts of an ideal society and must understand the connection between sacred and secular power and the political and religious institutions representing each. This is where a study of sociology and anthropology become important for religion. The relationship between religious and violent conflict is well known. It can be argued that religions are inclined to be absolutist, meaning they don’t allow for the validity of other religions. This discourages the discussions and negotiations and compromises needed to resolve differences of opinion peacefully, which can then have an effect on society itself. Without compromises, it can sometimes erupt into violence – so in terms of the importance of studying religion, it is ideal to know the interconnection between sociology and religion to understand why and how conflicts, for example, can sometimes occur. And then there’s the psychology behind the importance of studying religion. One of the early workers in this particular field was William James. He explored the psychological dimensions of phenomena as conversion, mysticism and saintliness. Livingstone says the connection between psychology and religion is perhaps the most closely associated with great figures in psychoanalysis. He also uses an example of Gordon Allport’s work, who studied the relationship between religion and prejudice. He says studies such as Allport’s show the value of psychological studies in revealing the potential effect of forms of religion on social relations and behaviours. Allport particularly discovered that there were different correlations between prejudice and types of being religious, what he referred to as extrinsic and intrinsic religions. This particular study into psychology and religion is significant because it can warn us against making too-simple correlation between prejudice and religion, according to Livingstone. In addition to Livingstone’s ideas behind studying religion, there are other factors that intertwine, like art, for example. No one can view art without noticing the influence of religion. Every religion provides ideas, tales, cultural symbols, and concepts vital to creating art. It can be argued that without the cultural resources available today that have been created by religions, some art would be impossible to create or even understand. It isn’t particularly essential for making art, but religion’s role culturally makes the connection stronger. In conclusion, it is difficult to seriously or substantively critique religion if it’s not understood. It is for this reason that an understanding language critique, sociology, history, psychology and philosophy, for example, is so important. Livingstone says the academic study of religion can help people to see religion as a whole. These scholarly views and disciplines can help people to see aspects of their own religions that they may be blind to, which in turn can help prosper more appreciation for various religious traditions.

An Overview of Indias Banking Sector

An Overview of Indias Banking Sector INTRODUCTION A bank is a financial institution whose primary activity is to act as a payment agent for customers, to borrow and to lend money. ‘BANK the name is derived from the italian word ‘banco, which means ‘desk/bench. The history of banks pave their way back to 3rd millenium B.C. They were probably the religious places where they started off. Then they developed gradually over years and currently it has taken a very complex shape. There are certain financial institutions whicu provide banking services but do not have the banking license,they are called NBFCs. There are various types of banks on the basis of activities and on the basis of ownership and above all is the central bank which is the last resort for all commercial banks in the country. Banks ought to get license for their working as a bank and there are regulations regarding the capital requirements and their reserves. The current scenario of banking industry is bad due to the net interest margin getting thinner because of incresed inflation and resultant hike in repo rates. MEANING AND DEFINITION The definition of a bank varies from country to country. Under English law, a bank is defined as a person who carries on the business of banking, which is specified as conducting current accounts for his customers paying cheques drawn on him, and collecting cheques for his customers. A Bank can be defined as : A bank is an institution that acts as an agent that provides financial services and that holds a banking license granted by bank regulatory authorities for carrying out the most fundamental banking services. There are also financial institutions that provide certain banking services without meeting the legal definition of a bank, a so called non-banking financial company. Banks are a subset of the financial services industry.Banks are a sub set of the financial services industry. Bank can be more clearly understood by the activities it perform: Accepting deposits and granting loans to customers. It also acts as credit intermediary- borrow and lend back-to-back on their own account as middle men. It also act as a collection agent, participate in inter-bank clearing and settlement systems. Issuer of money, in the form of banknotes and current accounts subject to cheque or payment at the customers order. In other words can be said that, Banker includes a body of persons, whether incorporated or not, who carry on the business of banking. HISTORY ‘BANK, the name is derived from the italian word ‘banco , which means ‘desk/bench , used during the Renaissance by Florentines bankers , who used to make their transactions above a desk covered by a green tablecloth. In fact, the word traces its origins back to the Ancient Roman Empire, where moneylenders would set up their stalls in the middle of enclosed courtyards called ‘macella on a long bench called a ‘bancu , from which the words banco and bank are derived. WORLD HISTORY The first banks were probably the religious temples of the ancient world, and were probably established sometime during the 3rd millennium B.C. Banks probably predated the invention of money. Deposits initially consisted of grain and later other goods including cattle, agricultural implements, and eventually precious metals such as gold.There are some extant records of loans from the 18th century B.C. in Babylon that were made by temple priests monks to merchants. Ancient Greece holds further evidence of banking. There is evidence too of credit, whereby in return for a payment from a client, a moneylender in one Greek port would write a credit note for the client who could cash the note in another city. In the late third century B.C., the barren Aegean island of Delos, known for its magnificent harbor and famous temple of Apollo, became a prominent banking center. Ancient Rome perfected the administrative aspect of banking and saw greater regulation of financial institutions and financial practices. Charging interest on loans and paying interest on deposits became more highly developed and competitive. The first modern bank was founded in Italy in Genoa in 1406, its name was Banco di San Giorgio (Bank of St. George). HISTORY OF BANKING IN INDIA: AN OVERVIEW Banking in India originated in the first decade of 18th century with The General Bank of India coming into existence in 1786. This was followed by Bank of Hindustan. Both these banks are now defunct. The oldest bank in existence in India is the State Bank of India being established as The Bank of Bengal in Calcutta in June 1806. The first fully Indian owned bank was the Allahabad Bank, which was established in 1865. By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai both of which were founded under private ownership. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After Indias independence in 1947, the Reserve Bank was nationalized and given broader powers. Early history At the end of late-18th century, there were hardly any banks in India in the modern sense of the term. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century. At the beginning of the 20th century, Indian economy was passing through a relative period of stability. Around five decades have elapsed since the Indias First war of Independence, at that time there were very small banks operated by Indians, and most of them were owned and operated by particular communities. The banking in India was controlled and dominated by the presidency banks, namely, the Bank of Bombay, the Bank of Bengal, and the Bank of Madras which later on merged to form the Imperial Bank of India, and Imperial Bank of India, upon Indias independence, was renamed the State Bank of India. There was potential for many new banks as the economy was growing. many Indians came forward to set up banks, and many banks were set up at that ti me, a number of which have survived to the present such as Bank of India and Corporation Bank, Indian Bank, Bank of Baroda, and Canara Bank. During the Wars The period during the First World War (1914-1918) through the end of the Second World War (1939-1945), and two years thereafter until the independence of India were challenging for the Indian banking. The years of the First World War were turbulent, and it took toll of many banks which simply collapsed despite the Indian economy gaining indirect boost due to war-related economic activities. At least 94 banks in India failed during the years 1913 to 1918. Post-independence The partition of India in 1947 had adversely impacted the economies of Punjab and West Bengal, and banking activities had remained paralyzed for months. In 1948, the Reserve Bank of India, Indias central banking authority, was nationalized, and it became an institution owned by the Government of India. In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) to regulate, control, and inspect the banks in India. The Banking Regulation Act also provided that no new bank or branch of an existing bank may be opened without a licence from the RBI, and no two banks could have common directors. Nationalisation By the 1960s, the Indian banking industry has become an important tool to facilitate the development of the Indian economy. Indira Gandhi, the-then Prime Minister of India expressed the intention of the GOI in the annual conference to nationalised the 14 largest commercial banks with effect from the midnight of July 19, 1969. A second dose of nationalisation of 6 more commercial banks followed in 1980. The stated reason for the nationalisation was to give the government more control of credit delivery. With the second dose of nationalisation, the GOI controlled around 91% of the banking business of India. After this, until the 1990s, the nationalised banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy. Liberalisation In the early 1990s the then Narsimha Rao government embarked on a policy of liberalisation and gave licences to a small number of private banks. This move, along with the rapid growth in the economy of India, kickstarted the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks. The next stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%,at present it has gone up to 49% with some restrictions. Current Situation Currently, India has 88 scheduled commercial banks (SCBs) 28 public sector banks (that is with the Government of India holding a stake), 29 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively. INDUSTRY DYNAMICS The Indian Banking industry is one of the most robustly developed banking system in the world comprising 28 PSU banks, 33 private banks and 35 foreign banks. Together these are known as scheduled commercial banks (SCBs). Apart form the SCBs, there exists 133 regional rural banks (RRBs) and four local area banks, 1853 urban co-operative banks and 109924 rural co-operative banks. The government of India nationalised 14 banks in 1969 and another six in 1980. Privatisation in the sector was allowed in 1993. ICICI Bank and HDFC Bank were the first to thrive thereafter. PSU major Sate bank of India is one of the 100 largest banks in the world. Industry Size The size of Indias financial and banking sector is quite low when compared to other countries. Omnipresence Banking is the only sector influencing all components of the GDP in one way or the other. It is the only sector that can help you capitalise on all the three key themes of the India growth story — consumption, investment and foreign trade. It drives acts as a source of funds for the infrastructure sector (construction, basic materials like cement metals and engineering). It promotes consumption through its complex machanisms for the FMCG, auto, pharma and the real estate sector. Under penetrated From a Banking and Financial Services perspective, India is an under penetrated market. The total credit as a percentage of GDP is 53% as compared to 80% in case of Japan, 83% incase of Korea.China and Malaysia have the highest credit penetration of 108% and 109% respectively. Retail credit penetration is a measly 13% in India much lower than 61% in Malaysia and 41% 23% in case of Korea and Japan. Also, India is under-insured when it comes to life and non-life insurance (penetration of just 4% in case of life insurance and 1% in case of non life insurance). TYPES OF BANKS  § ON THE BASIS OF ACTIVITIES: Banks activities can be divided into: Retail banking, dealing directly with individuals and small businesses. Business banking, providing services to mid-market business. Corporate banking, directed at large business entities. Private banking, providing wealth management services to High Net Worth Individuals and families. Investment banking, relating to activities on the financial markets Most banks are profit-making, private enterprises. However, some are owned by government, or are non-profits. Central banks are normally government owned banks: charged with quasi-regulatory responsibilities, e.g. supervising commercial banks. They generally provide liquidity to the banking system and act as Lender of last resort in event of a crisis. ON THE BASIS OF OWNERSHIP: Banks as classified on ownership basis can be categorised into: Public banks,owned and managed by government. Private banks,owned and managed by private enterpreneurs. Foreign banks,owned and managed by foreign institutions. Commercial banks Commercial banks can have two meanings: Commercial bank is the term used for a normal bank to distinguish it from an investment bank. Commercial bank can also refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses, as opposed to normal individual members of the public (retail banking). Commercial bank is engaged in the following activities: processing of payments by way of telegraphic transfer, EFTPOS, internet banking or other means issuing bank drafts and bank cheques accepting money on term deposit lending money by way of overdraft, installment loan or otherwise providing documentary and standby letter of credit, guarantees, performance bonds, securities underwriting commitments and other forms of off balance sheet exposures safekeeping of documents and other items in safe deposit boxes currency exchange sale, distribution or brokerage, with or without advice, of insurance, unit trusts and similar financial products as a â€Å"financial supermarket† Types of loans granted by commercial banks Secured loan A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral (i.e., security) for the loan. Mortgage loan A mortgage loan is a very common type of debt instrument, used to purchase real estate. Under this arrangement, the money is used to purchase property. Commercial banks, however, are given security a lien on the title to the house until the mortgage is paid off in full. If the borrower defaults on the loan, the bank would have the legal right to repossess the house and sell it, to recover sums owing to it. Unsecured loan Unsecured loans are monetary loans that are not secured against the borrowers assets (i.e., no collateral is involved). These may be available from financial institutions under many different guises or marketing packages: credit card debt, personal loans, bank overdrafts credit facilities or lines of credit corporate bonds Retail banks Retail banking refers to banking in which banks undergo transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and checking accounts, mortgages, personal loans, debit cards, credit cards, and so forth. Investment banks Investment banks are financial intermediaries that perform a variety of services. This includes underwriting, acting as an intermediary between an issuer of securities and the investing public, facilitating mergers and other corporate reorganizations, and also acting as a broker for institutional clients. In other words can be said that, Investment banks help companies and governments raise money by issuing and selling securities in the capital markets (both equity and debt), as well as providing advice on transactions such as mergers and acquisitions Types of investment banks Investment banks underwrite (guarantee the sale of) stock and bond issues, trade for their own accounts, make markets, and advise corporations on capital markets activities such as mergers and acquisitions. Merchant banks were traditionally banks which engaged in trade financing. The modern definition, however, refers to banks which provide capital to firms in the form of shares rather than loans. Unlike venture capital firms, they tend not to invest in new companies. Private banking Private banking is a term for banking, investment and other financial services provided by banks to private individuals disposing of sizable assets. The term private refers to the customer service being rendered on a more personal basis than in mass-market retail banking, usually via dedicated bank advisers. Personalized financial and banking services that are traditionally offered to a banks rich,high net worth individuals (HNWIs). Public banks Banks, which are incorporated, owned and regulated by government. Private banks Private banks are banks that are not incorporated. A non-incorporated bank is owned by either an individual or a general partner(s) with limited partner(s). In any such case, the creditors can look to both the entirety of the banks assets as well as the entirety of the sole-proprietors/general-partners assets. Private banks and private banking can also refer to non-government owned banks in general, in contrast to government-owned (or nationalized) banks. NON-BANKING FINANCIAL CORPORATION Non-bank financial companies (NBFCs) are financial institutions that provide banking services without meeting the legal definition of a bank, i.e. one that does not hold a banking license. Operations are, regardless of this, still exercised under bank regulation. However this depends on the jurisdiction, as in some jurisdictions, such as New Zealand, any company can do the business of banking, and there are no banking licences issued. NBFCs are doing functions akin to that of banks, however there are a few differences: (i) A NBFC cannot accept demand deposits; (ii) it is not a part of the payment and settlement system and as such cannot issue cheques to its customers; and (iii) deposit insurance facility of DICGC is not available for NBFC depositors unlike in case of banks. It is mandatory that every NBFC should be registered with RBI to commence or carry on any business of non-banking financial institution as defined in clause (a) of Section 45 I of the RBI Act, 1934.However, to obviate dual regulation, certain category of NBFCs which are regulated by other regulators are exempted from the requirement of registration with RBI viz. Venture Capital Fund/Merchant Banking companies/Stock broking companies registered with SEBI, Insurance Company holding a valid Certificate of Registration issued by IRDA, or Housing Finance Companies regulated by National Housing Bank. All NBFCs are not entitled to accept public deposits. Only those NBFCs holding a valid Certificate of Registration with authorization to accept Public Deposits can accept/hold public deposits. The NBFCs accepting public deposits should have minimum stipulated Net Owned Fund and comply with the Directions issued by the Bank. There is ceiling on acceptance of Public Deposits. A NBFC maintaining required NOF/CRAR and complying with the prudential norms could accept public deposits as follows: Category of NBFC Ceiling on public deposits AFCs maintaining CRAR of 15% without credit rating. AFCs with CRAR of 12% and having minimum investment grade credit rating. 1.5 times of NOF or Rs.10crore whichever is less. 4 times of NOF LC/IC with CRAR of 15% and having minimum investment grade credit rating. 1.5 times of NOF AFC-Asset financing Company LC-Loan Company IC-Investment Company If a NBFC defaults in repayment of deposit, the depositor can approach Company Law Board or Consumer Forum or file a civil suit to recover the deposits Some other types of banks: An advising bank (also known as a notifying bank) advises a beneficiary (exporter) that a letter of credit (L/C) opened by an issuing bank for an applicant (importer) is available and informs the beneficiary about the terms and conditions of the L/C. The advising bank is not necessarily responsible for the payment of the credit which it advises the beneficiary of. Community development banks (CDBs) are banks designed to serve residents and spur economic development in low- to moderate-income (LMI) geographical areas. When CDBs provide retail banking services, they usually target customers from financially underserved demographics. a custodian bank, or simply custodian, refers to a financial institution responsible for safeguarding a firms or individuals financial assets. The role of a custodian in such a case would be the following: to hold in safekeeping assets such as equities and bonds, arrange settlement of any purchases and sales of such securities, collect information on and income from such assets, provide information on the underlying companies and provide regular reporting on all their activities to their clients A depository bank is a bank organized in the United States which provides all the stock transfer and agency services in connection with a depository receipt program. This function includes arranging for a custodian to accept deposits of ordinary shares, issuing the negotiable receipts which back up the shares, maintaining the register of holders to reflect all transfers and exchanges, and distributing dividends. Islamic banking refers to a system of banking or banking activity that is consistent with Islamic law (Sharia) principles and guided by Islamic economics. In particular, Islamic law prohibits the collection and payment of interest.In addition, Islamic law prohibits investing in businesses that are considered unlawful. A mutual savings bank is a financial institution chartered through a state or federal government to provide a safe place for individuals to save and to invest those savings in mortgages, loans, stocks, Bonds and other securities. An offshore bank is a bank located outside the country of residence of the depositor, typically in a low tax jurisdiction that provides financial and legal advantages. Banking Industry Strucure in India CENTRAL BANK A central bank, reserve bank, or monetary authority is the entity responsible for the monetary policy of a country. Its primary responsibility is to maintain the stability of the national currency and money supply, but more active duties include controlling subsidized-loan interest rates, and acting as a bailout lender of last resort to the banking sector during times of financial crisis. ). It may also have supervisory powers, to ensure that banks and other financial institutions do not behave recklessly or fraudulently. History The oldest central bank in the world is the Riksbank in Sweden, which was opened in 1668 with help from Dutch businessmen. This was followed in 1694 by the Bank of England, created by Scottish businessman William Paterson in the City of London at the request of the English government to help pay for a war. Activities and responsibilities Functions of a central bank implementation of monetary policy controls the nations entire money supply the Governments banker and the bankers bank (Lender of Last Resort) manages the countrys foreign exchange and gold reserves and the Governments stock register; regulation and supervision of the banking industry: setting the official interest rate used to manage both inflation and the countrys exchange rate and ensuring that this rate takes effect via a variety of policy mechanisms Monetary policy: Central banks implement a countrys chosen monetary policy. At the most basic level, this involves establishing what form of currency the country may have, whether a fiat currency, gold-backed currency, currency board or a currency union. Currency issuance: Many central banks are banks in the sense that they hold assets (foreign exchange, gold, and other financial assets) and liabilities. Central banks generally earn money by issuing currency notes and selling them to the public for interest-bearing assets, such as government bonds. Interest rate interventions: Typically a central bank controls certain types of short-term interest rates. These influence the stock- and bond markets as well as mortgage and other interest rates. Policy instruments The main monetary policy instruments available to central banks are: open market operation bank reserve requirement interest rate policy credit policy capital adequacy is important, it is defined and regulated by the Bank for International Settlements, and central banks in practice generally do not apply stricter rules. Open Market Operations: Through open market operations, a central bank influences the money supply in an economy directly. Each time it buys securities, exchanging money for the security, it raises the money supply. Conversely, selling of securities lowers the money supply. Buying of securities thus amounts to printing new money while lowering supply of the specific security. Reserve Requirement: Another significant power that central banks hold is the ability to establish reserve requirements for other banks. By requiring that a percentage of liabilities be held as cash or deposited with the central bank (or other agency), limits are set on the money supply. Interest Rate Policy: By far the most visible and obvious power of many modern central banks is to influence market interest rates. The mechanism to move the market towards a target rate is generally to lend money or borrow money in theoretically unlimited quantities, until the targeted market rate is sufficiently close to the target. Central banks may do so by lending money to and borrowing money from (taking deposits from) a limited number of qualified banks, or by purchasing and selling bonds. Capital requirements: All banks are required to hold a certain percentage of their assets as capital, a rate which may be established by the central bank or the banking supervisor. Capital requirements may be considered more effective than deposit/reserve requirements in preventing indefinite lending: when at the threshold, a bank cannot extend another loan without acquiring further capital on its balance sheet. Entry regulation Currently in most jurisdictions commercial banks are regulated by government entities and require a special bank licence to operate. Unlike most other regulated industries, the regulator is typically also a participant in the market, i.e. government owned bank (a central bank). The requirements for the issue of a bank licence vary between jurisdictions but typically incude: Minimum capital Minimum capital ratio Fit and Proper requirements for the banks controllers, owners, directors, and/or senior officers Approval of the banks business plan as being sufficiently prudent and plausible. Banking channels A branch, banking centre or financial centre is a retail location where a bank or financial institution offers a wide array of face-to-face service to its customers ATM. Mail. Telephone banking Online banking Bank crisis liquidity risk -the risk that many depositors will request withdrawals beyond available funds credit risk -the risk that those who owe money to the bank will not repay interest rate risk- the risk that the bank will become unprofitable if rising interest rates force it to pay relatively more on its deposits than it receives on its loans. Profitability A bank generates a profit from the differential between the level of interest it pays for deposits and other sources of funds, and the level of interest it charges in its lending activities. This difference is referred to as the spread between the cost of funds and the loan interest rate. Bank Regulations Bank regulations are a form of government regulation which subject banks to certain requirements, restrictions and guidelines. The objectives of bank regulation, and the emphasis are: Prudential to reduce the level of risk bank creditors are exposed to Systemic risk reduction to reduce the risk of disruption resulting from adverse trading conditions for banks causing multiple or major bank failures Avoid Misuse of Banks to reduce the risk of banks being used for criminal purposes, e.g. laundering the proceeds of crime To protect banking confidentiality Credit allocation to direct credit to favoured sectors . General Principles of Bank Regulation Banking regulations can vary widely across nations and jurisdictions. Thes are some of the general principles of bank regulation throughout the world Minimum Requirements Requirements are imposed on banks in order to promote the objectives of the regulator. The most important minimum requirement in banking regulation is minimum capital ratios. Supervisory Review Banks are required to be issued with a bank licence by the regulator in order to carry on business as a bank, and the regulator supervises licenced banks for compliance with the requirements and responds to breaches of the requirements through obtaining undertakings, giving directions, imposing penalties or revoking the banks licence. Market Discipline The regulator requires banks to publicly disclose financial and other information, and depositors and other creditors are able to use this information to assess the level of risk and to make investment decisions. As a result of this, the bank is subject to market discipline and the regulator can also use market-pricing information as an indicator of the banks financial health. Instruments and Requirements of Bank Regulation Capital requirement The capital requirement is a bank regulation, which sets a framework on how banks and depository institutions must handle their capital. The categorization of assets and capital is highly standardized so that it can be risk weighted. The capital ratio is the percentage of a banks capital to its risk-weighted assets. Reserve requirement The reserve requirement sets the minimum reserves each bank must hold to demand deposits and banknotes. The purpose of minimum reserve ratios is liquidity rather than safety. Corporate Governance Corporate governance requirements are intented to encourage the bank to be well managed and also to achieve certain objectives as to maintain it as a body corporate, maintaining minimum number of members and organisational structure etc. Financial Reporting, Disclosure and Prospectus Requirements Banks may be required to: Prepare annual financial statements according to a financial reporting standard, have them audited, and to register or publish them . Prepare more frequent financial disclosures. Have directors of the bank attest to the accuracy of such financial disclosures. Prepare and have registered prospectuses detailing the terms of securities it issues. Credit Rating Requirement Banks may be required to obtain An Overview of Indias Banking Sector An Overview of Indias Banking Sector INTRODUCTION A bank is a financial institution whose primary activity is to act as a payment agent for customers, to borrow and to lend money. ‘BANK the name is derived from the italian word ‘banco, which means ‘desk/bench. The history of banks pave their way back to 3rd millenium B.C. They were probably the religious places where they started off. Then they developed gradually over years and currently it has taken a very complex shape. There are certain financial institutions whicu provide banking services but do not have the banking license,they are called NBFCs. There are various types of banks on the basis of activities and on the basis of ownership and above all is the central bank which is the last resort for all commercial banks in the country. Banks ought to get license for their working as a bank and there are regulations regarding the capital requirements and their reserves. The current scenario of banking industry is bad due to the net interest margin getting thinner because of incresed inflation and resultant hike in repo rates. MEANING AND DEFINITION The definition of a bank varies from country to country. Under English law, a bank is defined as a person who carries on the business of banking, which is specified as conducting current accounts for his customers paying cheques drawn on him, and collecting cheques for his customers. A Bank can be defined as : A bank is an institution that acts as an agent that provides financial services and that holds a banking license granted by bank regulatory authorities for carrying out the most fundamental banking services. There are also financial institutions that provide certain banking services without meeting the legal definition of a bank, a so called non-banking financial company. Banks are a subset of the financial services industry.Banks are a sub set of the financial services industry. Bank can be more clearly understood by the activities it perform: Accepting deposits and granting loans to customers. It also acts as credit intermediary- borrow and lend back-to-back on their own account as middle men. It also act as a collection agent, participate in inter-bank clearing and settlement systems. Issuer of money, in the form of banknotes and current accounts subject to cheque or payment at the customers order. In other words can be said that, Banker includes a body of persons, whether incorporated or not, who carry on the business of banking. HISTORY ‘BANK, the name is derived from the italian word ‘banco , which means ‘desk/bench , used during the Renaissance by Florentines bankers , who used to make their transactions above a desk covered by a green tablecloth. In fact, the word traces its origins back to the Ancient Roman Empire, where moneylenders would set up their stalls in the middle of enclosed courtyards called ‘macella on a long bench called a ‘bancu , from which the words banco and bank are derived. WORLD HISTORY The first banks were probably the religious temples of the ancient world, and were probably established sometime during the 3rd millennium B.C. Banks probably predated the invention of money. Deposits initially consisted of grain and later other goods including cattle, agricultural implements, and eventually precious metals such as gold.There are some extant records of loans from the 18th century B.C. in Babylon that were made by temple priests monks to merchants. Ancient Greece holds further evidence of banking. There is evidence too of credit, whereby in return for a payment from a client, a moneylender in one Greek port would write a credit note for the client who could cash the note in another city. In the late third century B.C., the barren Aegean island of Delos, known for its magnificent harbor and famous temple of Apollo, became a prominent banking center. Ancient Rome perfected the administrative aspect of banking and saw greater regulation of financial institutions and financial practices. Charging interest on loans and paying interest on deposits became more highly developed and competitive. The first modern bank was founded in Italy in Genoa in 1406, its name was Banco di San Giorgio (Bank of St. George). HISTORY OF BANKING IN INDIA: AN OVERVIEW Banking in India originated in the first decade of 18th century with The General Bank of India coming into existence in 1786. This was followed by Bank of Hindustan. Both these banks are now defunct. The oldest bank in existence in India is the State Bank of India being established as The Bank of Bengal in Calcutta in June 1806. The first fully Indian owned bank was the Allahabad Bank, which was established in 1865. By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai both of which were founded under private ownership. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After Indias independence in 1947, the Reserve Bank was nationalized and given broader powers. Early history At the end of late-18th century, there were hardly any banks in India in the modern sense of the term. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century. At the beginning of the 20th century, Indian economy was passing through a relative period of stability. Around five decades have elapsed since the Indias First war of Independence, at that time there were very small banks operated by Indians, and most of them were owned and operated by particular communities. The banking in India was controlled and dominated by the presidency banks, namely, the Bank of Bombay, the Bank of Bengal, and the Bank of Madras which later on merged to form the Imperial Bank of India, and Imperial Bank of India, upon Indias independence, was renamed the State Bank of India. There was potential for many new banks as the economy was growing. many Indians came forward to set up banks, and many banks were set up at that ti me, a number of which have survived to the present such as Bank of India and Corporation Bank, Indian Bank, Bank of Baroda, and Canara Bank. During the Wars The period during the First World War (1914-1918) through the end of the Second World War (1939-1945), and two years thereafter until the independence of India were challenging for the Indian banking. The years of the First World War were turbulent, and it took toll of many banks which simply collapsed despite the Indian economy gaining indirect boost due to war-related economic activities. At least 94 banks in India failed during the years 1913 to 1918. Post-independence The partition of India in 1947 had adversely impacted the economies of Punjab and West Bengal, and banking activities had remained paralyzed for months. In 1948, the Reserve Bank of India, Indias central banking authority, was nationalized, and it became an institution owned by the Government of India. In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) to regulate, control, and inspect the banks in India. The Banking Regulation Act also provided that no new bank or branch of an existing bank may be opened without a licence from the RBI, and no two banks could have common directors. Nationalisation By the 1960s, the Indian banking industry has become an important tool to facilitate the development of the Indian economy. Indira Gandhi, the-then Prime Minister of India expressed the intention of the GOI in the annual conference to nationalised the 14 largest commercial banks with effect from the midnight of July 19, 1969. A second dose of nationalisation of 6 more commercial banks followed in 1980. The stated reason for the nationalisation was to give the government more control of credit delivery. With the second dose of nationalisation, the GOI controlled around 91% of the banking business of India. After this, until the 1990s, the nationalised banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy. Liberalisation In the early 1990s the then Narsimha Rao government embarked on a policy of liberalisation and gave licences to a small number of private banks. This move, along with the rapid growth in the economy of India, kickstarted the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks. The next stage for the Indian banking has been setup with the proposed relaxation in the norms for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights which could exceed the present cap of 10%,at present it has gone up to 49% with some restrictions. Current Situation Currently, India has 88 scheduled commercial banks (SCBs) 28 public sector banks (that is with the Government of India holding a stake), 29 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively. INDUSTRY DYNAMICS The Indian Banking industry is one of the most robustly developed banking system in the world comprising 28 PSU banks, 33 private banks and 35 foreign banks. Together these are known as scheduled commercial banks (SCBs). Apart form the SCBs, there exists 133 regional rural banks (RRBs) and four local area banks, 1853 urban co-operative banks and 109924 rural co-operative banks. The government of India nationalised 14 banks in 1969 and another six in 1980. Privatisation in the sector was allowed in 1993. ICICI Bank and HDFC Bank were the first to thrive thereafter. PSU major Sate bank of India is one of the 100 largest banks in the world. Industry Size The size of Indias financial and banking sector is quite low when compared to other countries. Omnipresence Banking is the only sector influencing all components of the GDP in one way or the other. It is the only sector that can help you capitalise on all the three key themes of the India growth story — consumption, investment and foreign trade. It drives acts as a source of funds for the infrastructure sector (construction, basic materials like cement metals and engineering). It promotes consumption through its complex machanisms for the FMCG, auto, pharma and the real estate sector. Under penetrated From a Banking and Financial Services perspective, India is an under penetrated market. The total credit as a percentage of GDP is 53% as compared to 80% in case of Japan, 83% incase of Korea.China and Malaysia have the highest credit penetration of 108% and 109% respectively. Retail credit penetration is a measly 13% in India much lower than 61% in Malaysia and 41% 23% in case of Korea and Japan. Also, India is under-insured when it comes to life and non-life insurance (penetration of just 4% in case of life insurance and 1% in case of non life insurance). TYPES OF BANKS  § ON THE BASIS OF ACTIVITIES: Banks activities can be divided into: Retail banking, dealing directly with individuals and small businesses. Business banking, providing services to mid-market business. Corporate banking, directed at large business entities. Private banking, providing wealth management services to High Net Worth Individuals and families. Investment banking, relating to activities on the financial markets Most banks are profit-making, private enterprises. However, some are owned by government, or are non-profits. Central banks are normally government owned banks: charged with quasi-regulatory responsibilities, e.g. supervising commercial banks. They generally provide liquidity to the banking system and act as Lender of last resort in event of a crisis. ON THE BASIS OF OWNERSHIP: Banks as classified on ownership basis can be categorised into: Public banks,owned and managed by government. Private banks,owned and managed by private enterpreneurs. Foreign banks,owned and managed by foreign institutions. Commercial banks Commercial banks can have two meanings: Commercial bank is the term used for a normal bank to distinguish it from an investment bank. Commercial bank can also refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses, as opposed to normal individual members of the public (retail banking). Commercial bank is engaged in the following activities: processing of payments by way of telegraphic transfer, EFTPOS, internet banking or other means issuing bank drafts and bank cheques accepting money on term deposit lending money by way of overdraft, installment loan or otherwise providing documentary and standby letter of credit, guarantees, performance bonds, securities underwriting commitments and other forms of off balance sheet exposures safekeeping of documents and other items in safe deposit boxes currency exchange sale, distribution or brokerage, with or without advice, of insurance, unit trusts and similar financial products as a â€Å"financial supermarket† Types of loans granted by commercial banks Secured loan A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral (i.e., security) for the loan. Mortgage loan A mortgage loan is a very common type of debt instrument, used to purchase real estate. Under this arrangement, the money is used to purchase property. Commercial banks, however, are given security a lien on the title to the house until the mortgage is paid off in full. If the borrower defaults on the loan, the bank would have the legal right to repossess the house and sell it, to recover sums owing to it. Unsecured loan Unsecured loans are monetary loans that are not secured against the borrowers assets (i.e., no collateral is involved). These may be available from financial institutions under many different guises or marketing packages: credit card debt, personal loans, bank overdrafts credit facilities or lines of credit corporate bonds Retail banks Retail banking refers to banking in which banks undergo transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and checking accounts, mortgages, personal loans, debit cards, credit cards, and so forth. Investment banks Investment banks are financial intermediaries that perform a variety of services. This includes underwriting, acting as an intermediary between an issuer of securities and the investing public, facilitating mergers and other corporate reorganizations, and also acting as a broker for institutional clients. In other words can be said that, Investment banks help companies and governments raise money by issuing and selling securities in the capital markets (both equity and debt), as well as providing advice on transactions such as mergers and acquisitions Types of investment banks Investment banks underwrite (guarantee the sale of) stock and bond issues, trade for their own accounts, make markets, and advise corporations on capital markets activities such as mergers and acquisitions. Merchant banks were traditionally banks which engaged in trade financing. The modern definition, however, refers to banks which provide capital to firms in the form of shares rather than loans. Unlike venture capital firms, they tend not to invest in new companies. Private banking Private banking is a term for banking, investment and other financial services provided by banks to private individuals disposing of sizable assets. The term private refers to the customer service being rendered on a more personal basis than in mass-market retail banking, usually via dedicated bank advisers. Personalized financial and banking services that are traditionally offered to a banks rich,high net worth individuals (HNWIs). Public banks Banks, which are incorporated, owned and regulated by government. Private banks Private banks are banks that are not incorporated. A non-incorporated bank is owned by either an individual or a general partner(s) with limited partner(s). In any such case, the creditors can look to both the entirety of the banks assets as well as the entirety of the sole-proprietors/general-partners assets. Private banks and private banking can also refer to non-government owned banks in general, in contrast to government-owned (or nationalized) banks. NON-BANKING FINANCIAL CORPORATION Non-bank financial companies (NBFCs) are financial institutions that provide banking services without meeting the legal definition of a bank, i.e. one that does not hold a banking license. Operations are, regardless of this, still exercised under bank regulation. However this depends on the jurisdiction, as in some jurisdictions, such as New Zealand, any company can do the business of banking, and there are no banking licences issued. NBFCs are doing functions akin to that of banks, however there are a few differences: (i) A NBFC cannot accept demand deposits; (ii) it is not a part of the payment and settlement system and as such cannot issue cheques to its customers; and (iii) deposit insurance facility of DICGC is not available for NBFC depositors unlike in case of banks. It is mandatory that every NBFC should be registered with RBI to commence or carry on any business of non-banking financial institution as defined in clause (a) of Section 45 I of the RBI Act, 1934.However, to obviate dual regulation, certain category of NBFCs which are regulated by other regulators are exempted from the requirement of registration with RBI viz. Venture Capital Fund/Merchant Banking companies/Stock broking companies registered with SEBI, Insurance Company holding a valid Certificate of Registration issued by IRDA, or Housing Finance Companies regulated by National Housing Bank. All NBFCs are not entitled to accept public deposits. Only those NBFCs holding a valid Certificate of Registration with authorization to accept Public Deposits can accept/hold public deposits. The NBFCs accepting public deposits should have minimum stipulated Net Owned Fund and comply with the Directions issued by the Bank. There is ceiling on acceptance of Public Deposits. A NBFC maintaining required NOF/CRAR and complying with the prudential norms could accept public deposits as follows: Category of NBFC Ceiling on public deposits AFCs maintaining CRAR of 15% without credit rating. AFCs with CRAR of 12% and having minimum investment grade credit rating. 1.5 times of NOF or Rs.10crore whichever is less. 4 times of NOF LC/IC with CRAR of 15% and having minimum investment grade credit rating. 1.5 times of NOF AFC-Asset financing Company LC-Loan Company IC-Investment Company If a NBFC defaults in repayment of deposit, the depositor can approach Company Law Board or Consumer Forum or file a civil suit to recover the deposits Some other types of banks: An advising bank (also known as a notifying bank) advises a beneficiary (exporter) that a letter of credit (L/C) opened by an issuing bank for an applicant (importer) is available and informs the beneficiary about the terms and conditions of the L/C. The advising bank is not necessarily responsible for the payment of the credit which it advises the beneficiary of. Community development banks (CDBs) are banks designed to serve residents and spur economic development in low- to moderate-income (LMI) geographical areas. When CDBs provide retail banking services, they usually target customers from financially underserved demographics. a custodian bank, or simply custodian, refers to a financial institution responsible for safeguarding a firms or individuals financial assets. The role of a custodian in such a case would be the following: to hold in safekeeping assets such as equities and bonds, arrange settlement of any purchases and sales of such securities, collect information on and income from such assets, provide information on the underlying companies and provide regular reporting on all their activities to their clients A depository bank is a bank organized in the United States which provides all the stock transfer and agency services in connection with a depository receipt program. This function includes arranging for a custodian to accept deposits of ordinary shares, issuing the negotiable receipts which back up the shares, maintaining the register of holders to reflect all transfers and exchanges, and distributing dividends. Islamic banking refers to a system of banking or banking activity that is consistent with Islamic law (Sharia) principles and guided by Islamic economics. In particular, Islamic law prohibits the collection and payment of interest.In addition, Islamic law prohibits investing in businesses that are considered unlawful. A mutual savings bank is a financial institution chartered through a state or federal government to provide a safe place for individuals to save and to invest those savings in mortgages, loans, stocks, Bonds and other securities. An offshore bank is a bank located outside the country of residence of the depositor, typically in a low tax jurisdiction that provides financial and legal advantages. Banking Industry Strucure in India CENTRAL BANK A central bank, reserve bank, or monetary authority is the entity responsible for the monetary policy of a country. Its primary responsibility is to maintain the stability of the national currency and money supply, but more active duties include controlling subsidized-loan interest rates, and acting as a bailout lender of last resort to the banking sector during times of financial crisis. ). It may also have supervisory powers, to ensure that banks and other financial institutions do not behave recklessly or fraudulently. History The oldest central bank in the world is the Riksbank in Sweden, which was opened in 1668 with help from Dutch businessmen. This was followed in 1694 by the Bank of England, created by Scottish businessman William Paterson in the City of London at the request of the English government to help pay for a war. Activities and responsibilities Functions of a central bank implementation of monetary policy controls the nations entire money supply the Governments banker and the bankers bank (Lender of Last Resort) manages the countrys foreign exchange and gold reserves and the Governments stock register; regulation and supervision of the banking industry: setting the official interest rate used to manage both inflation and the countrys exchange rate and ensuring that this rate takes effect via a variety of policy mechanisms Monetary policy: Central banks implement a countrys chosen monetary policy. At the most basic level, this involves establishing what form of currency the country may have, whether a fiat currency, gold-backed currency, currency board or a currency union. Currency issuance: Many central banks are banks in the sense that they hold assets (foreign exchange, gold, and other financial assets) and liabilities. Central banks generally earn money by issuing currency notes and selling them to the public for interest-bearing assets, such as government bonds. Interest rate interventions: Typically a central bank controls certain types of short-term interest rates. These influence the stock- and bond markets as well as mortgage and other interest rates. Policy instruments The main monetary policy instruments available to central banks are: open market operation bank reserve requirement interest rate policy credit policy capital adequacy is important, it is defined and regulated by the Bank for International Settlements, and central banks in practice generally do not apply stricter rules. Open Market Operations: Through open market operations, a central bank influences the money supply in an economy directly. Each time it buys securities, exchanging money for the security, it raises the money supply. Conversely, selling of securities lowers the money supply. Buying of securities thus amounts to printing new money while lowering supply of the specific security. Reserve Requirement: Another significant power that central banks hold is the ability to establish reserve requirements for other banks. By requiring that a percentage of liabilities be held as cash or deposited with the central bank (or other agency), limits are set on the money supply. Interest Rate Policy: By far the most visible and obvious power of many modern central banks is to influence market interest rates. The mechanism to move the market towards a target rate is generally to lend money or borrow money in theoretically unlimited quantities, until the targeted market rate is sufficiently close to the target. Central banks may do so by lending money to and borrowing money from (taking deposits from) a limited number of qualified banks, or by purchasing and selling bonds. Capital requirements: All banks are required to hold a certain percentage of their assets as capital, a rate which may be established by the central bank or the banking supervisor. Capital requirements may be considered more effective than deposit/reserve requirements in preventing indefinite lending: when at the threshold, a bank cannot extend another loan without acquiring further capital on its balance sheet. Entry regulation Currently in most jurisdictions commercial banks are regulated by government entities and require a special bank licence to operate. Unlike most other regulated industries, the regulator is typically also a participant in the market, i.e. government owned bank (a central bank). The requirements for the issue of a bank licence vary between jurisdictions but typically incude: Minimum capital Minimum capital ratio Fit and Proper requirements for the banks controllers, owners, directors, and/or senior officers Approval of the banks business plan as being sufficiently prudent and plausible. Banking channels A branch, banking centre or financial centre is a retail location where a bank or financial institution offers a wide array of face-to-face service to its customers ATM. Mail. Telephone banking Online banking Bank crisis liquidity risk -the risk that many depositors will request withdrawals beyond available funds credit risk -the risk that those who owe money to the bank will not repay interest rate risk- the risk that the bank will become unprofitable if rising interest rates force it to pay relatively more on its deposits than it receives on its loans. Profitability A bank generates a profit from the differential between the level of interest it pays for deposits and other sources of funds, and the level of interest it charges in its lending activities. This difference is referred to as the spread between the cost of funds and the loan interest rate. Bank Regulations Bank regulations are a form of government regulation which subject banks to certain requirements, restrictions and guidelines. The objectives of bank regulation, and the emphasis are: Prudential to reduce the level of risk bank creditors are exposed to Systemic risk reduction to reduce the risk of disruption resulting from adverse trading conditions for banks causing multiple or major bank failures Avoid Misuse of Banks to reduce the risk of banks being used for criminal purposes, e.g. laundering the proceeds of crime To protect banking confidentiality Credit allocation to direct credit to favoured sectors . General Principles of Bank Regulation Banking regulations can vary widely across nations and jurisdictions. Thes are some of the general principles of bank regulation throughout the world Minimum Requirements Requirements are imposed on banks in order to promote the objectives of the regulator. The most important minimum requirement in banking regulation is minimum capital ratios. Supervisory Review Banks are required to be issued with a bank licence by the regulator in order to carry on business as a bank, and the regulator supervises licenced banks for compliance with the requirements and responds to breaches of the requirements through obtaining undertakings, giving directions, imposing penalties or revoking the banks licence. Market Discipline The regulator requires banks to publicly disclose financial and other information, and depositors and other creditors are able to use this information to assess the level of risk and to make investment decisions. As a result of this, the bank is subject to market discipline and the regulator can also use market-pricing information as an indicator of the banks financial health. Instruments and Requirements of Bank Regulation Capital requirement The capital requirement is a bank regulation, which sets a framework on how banks and depository institutions must handle their capital. The categorization of assets and capital is highly standardized so that it can be risk weighted. The capital ratio is the percentage of a banks capital to its risk-weighted assets. Reserve requirement The reserve requirement sets the minimum reserves each bank must hold to demand deposits and banknotes. The purpose of minimum reserve ratios is liquidity rather than safety. Corporate Governance Corporate governance requirements are intented to encourage the bank to be well managed and also to achieve certain objectives as to maintain it as a body corporate, maintaining minimum number of members and organisational structure etc. Financial Reporting, Disclosure and Prospectus Requirements Banks may be required to: Prepare annual financial statements according to a financial reporting standard, have them audited, and to register or publish them . Prepare more frequent financial disclosures. Have directors of the bank attest to the accuracy of such financial disclosures. Prepare and have registered prospectuses detailing the terms of securities it issues. Credit Rating Requirement Banks may be required to obtain

Science as Savior and Destroyer in The Victorian Age Essay -- Literatu

Science as Savior and Destroyer in The Victorian Age      Ã‚  Ã‚  Ã‚  Ã‚   â€Å"The Victorian age was first and foremost an age of transition.   The England that    had once been a feudal and agricultural society was transformed into an industrial    democracy† (Mitchell, xiv).   Just about every aspect of Victorian daily life, from    education to cooking to religion and politics, was changing.   â€Å"The Victorian age in English    Literature is known for its earnest obedience to a moralistic and highly structured social code of    conduct; however, in the last decade of the 19th century this order began to be questioned†Ã‚   (It is    my Duty).   In celebration of   industrial achievements the Great Exhibition of 1851 became a    showplace for the world to witness England’s superiority in modern technology.   The exhibit    was â€Å"seen by some six million visitors; in some periods the daily attendance was well over    100,000† (Mitchell, 8).   The new railway system brought the curious visitors from all over the    country.   The next few years would see the construction of the subway system, electric    lights, telegraph and telephone, steamships and electric trams.   Along with the increasing    reliance on technology, the medical field would also share their discoveries with the    world.   The fear of disease would prompt hygienic standards and germ theories.   The    wealthy’s obsession with health beliefs and practices are manifested in their fear of    disease.   This obsession with health is taken to the extreme in the form of Dr. John Harvey    Kellogg and his belief in â€Å"biological living, which included a meatless diet, a ... ... is my Pleasure.†Ã‚   19th Century Victorian Monstrosities.   Essay Two.   Ã‚   http:www.itech.fgcu.edu/faculty.rtotaro/ Mitchell, Sally.   Daily Life in Victorian England.   Westport, CT:   The Greenwood Press. 1996.   Reed, John R.   The Natural History of H. G. Wells.   Athens, Ohio:   Athens University Press.   1982 Stevenson, Robert Louis.   The Strange Case of Dr. Jekyll and Mr. Hyde.   1886.   New York:   Dover Publications, Inc.   1991. Wells, H. G.   Experiment in Autobiography:   Discoveries and Conclusions of a Very Ordinary Brain (Since 1866).   1934.   Boston:   Little, Brown and Company.   1962. Wells, H. G.   The Island of Dr. Moreau.   1897.   New York:   Bantam Books, 1994. Wells, H. G.   The Time Machine.   1895.   New York:   Dover Publications, Inc.,   1995. Wilde, Oscar.   The Picture of Dorian Gray. 1890.   New York:   Dover Publications, Inc. 1993.