Tuesday, May 26, 2020
The Foolproof Essay Samples of Heavy Equipment Strategy Earplugs are the most often used to keep the sound level down. It's extremely important to get the most suitable sort of personal protective equipment for your ears to safeguard them from the loud noises. It is extremely important for people to prevent damage to their eyes, so it's important to have the right kind of eye protection while in a workplace that could possibly be dangerous to the eyes. Each individual paragraph should concentrate on a specific component of the thesis. The main purpose of the body paragraphs is to fully demonstrate the thesis statement. These words and phrases may be used. There's no particular style for the introduction, but background information is easily the most frequent procedure of approach. Todd's qualifications and experience are stated at the start of the resume example to make sure the reader reads the remainder of the resume. Don't be worried about a few of them being rather ab stract their principal aim is to reveal to you the basic principles that you'll have the ability to transfer to your own writing. Even the smartest folks forget sometimes. A holistic approach to assessment needs to be adopted so any one particular part of evidence covers more than one learning outcome and lots of assessment criteria. Get the Scoop on Essay Samples of Heavy Equipment Before You're Too Late Download a duplicate of the template now, make the essential modifications, and print it on paper so that you can use it straight away. In a way, checklists can likewise be deemed as a reminder because it reminds us on what things to do and what still has to be accomplished. The template is printed-ready with the crystal clear and understandable information that's simple to use. It helps you perform the maintenance through the checklist noted. Identify different kinds of equipment and their uses There are several different forms of office equipment. It is imperative to c omprehend why machine and equipment safe guards must be employed on machines. Explain why various sorts of equipment are chosen for tasks Different forms of equipment are used and chosen for different tasks because not 1 part of equipment can do every single endeavor, therefore it is always fantastic to have all the relevant kinds of office equipment to finish a task. Material handling equipment is utilized to improve output, control expenses, and maximize productivity. Your equipment plays a crucial role in your organization. Office equipment is frequently one of the largest costs of any company. Personal Protective Equipment is of big significance in workplaces throughout the world. Overall, it is very important in workplaces all over the world. Essay Samples of Heavy Equipment Explained Using NFL jerseys is quite common. Locating a cheap NFL jersey has been a daunting undertaking for a number of the hardcore fans despite the team they support for. With personalized je rseys of the NFL, you are certain that you've got the ideal design. The plan of the Kilt Hanger is ideal for the whole Prince Charlie outfit. The Debate Over Essay Samples of Heavy Equipment A little step of progress might already lead to a large decrease in school bag weights. Sometimes employing a hook statement can be effective, but it's not required. An operator or maintenance worker should be offered with a dress code. A very simple inventory list greatly assists in the true inventory and ought to act as your basis for comparison after a true inventory count. The Battle Over Essay Samples of Heavy Equipment and How to Win It The introduction usually starts out with some kind of background info. You should offer information which is related to your thesis. It will vary dependent on the subject of discussion and the thesis statement that's created. After writing the whole essay, have a quick break and reread it from front to back. PPE personal protective equipment ne eds to be considered a secondary field of defense against equipment hazards. The Kilt Kit was made to be tossed around. Understanding Essay Samples of Heavy Equipment Any operation that's done for the concern of the car is quite much needed to execute. Tire selection may have a significant effect on production and unit price. Caterpillar demanded wage freezes and a decrease in the expense of living adjustments. Air pollution from car is the significant contributor of premature deaths throughout the world. 3 Give example of the way to deal with problems For some problems you'll be able to ask members of staff should they understand how to resolve the problem if not you may inform your manager and the IT Support team about the issue and they'll do there best to correct the problem to get things running smoothly again so you can carry on with your job. In this manner, you're conscious of each region of the equipment that's in good or not in good shape. They besides portion t he topic of waiting. Because of these individuals would desire to eliminate the beach for the goal of necessitating a quieter and loosen uping atmosphere. As a consequence, you get a wonderful deal of free time and completed homework. The corporation's extensive advertising campaign is going to be utilized to make product awareness through the usage of trade journals, direct mail advertising, and other ways. Thus, it monitored the progress of the said project. It is strong, resilient and definitely focused on the future.
Sunday, May 24, 2020
Volunteering and Attitudes Toward Social Welfare Spending Despite extensive research having been done on explaining why some individuals are more likely to support spending on social welfare than others, to this date, no one has examined the effect that a personÃ¢â¬â¢s level of volunteerism has on support for spending. However, the level of community involvement is worthy of consideration as an explanation for support for social welfare spending because, as has been reported by previous research, volunteers often find that structural problems exist that can only be remedied by government intervention. Using data from the 1996 General Social Survey, this research tests the hypothesis that the more areas in which a person volunteers, theÃ¢â¬ ¦show more contentÃ¢â¬ ¦Furthermore, a large portion of the federal governmentÃ¢â¬â¢s budget is reserved for spending that seeks to improve the general welfare of citizens, such as money spent on fighting drug addiction and solving urban problems. Despite the assistance that welfare provides, many people are opposed to its expansion. In 1996, the welfare system underwent significant changes that reduced benefits and reformed the nature of several programs (Welfare Reform). Debate on this topic continues to the present day. Claiming that the country needs to remedy the ever-growing gap between rich and poor, some activists (as well as the poor themselves) clamor for financial support from the government in order to level the playing field. Another way to increase the quality of life for the poor, however, is through volunteering, a method often supported by those who disagree with an expansive government or do not trust the sometimes ineffective federal bureaucracy. Although seemingly contradictory, it is completely plausible that volunteering would cause an individual to support an increase in social welfare spending because he or she may come to realize through volunteering that some problems are too vast to be cured by the work of a few individuals. By examining the relationship between an individualÃ¢â¬â¢s level of volunteerism and his or her support of social welfare spending, this researchShow MoreRelatedEssay about PWC Corporate Social Responsibility 1469 Words Ã |Ã 6 Pages There is a debate about the level of social responsibility of multinational and national companies there days. Various books have been written detailing the right approach to the problem covering different perspectives. The ideology is well developed, however, there is a lack of current case studies analyzing what is really happening in the corporate executive level to support the society. There are many mission statements written about social responsibility, however, it is essential to examineRead MoreCommunity Service as a Graduation Requirement1680 Words Ã |Ã 7 Pagescommunity. Not only will the students become more aware of the activities that occur in their community, but they will also have a greater sense of self. Each student has his own reason for volunteering. Many volunteer for the joy of helping others, and some volunteer to seek career opportunities. Simply volunteering at a place that is related to the career one is interested in will help him determine whether that career is suited for him. Bill Jensen, Superintendent of Curriculum for Bartholomew ConsolidatedRead MoreMovie Report : The Fall Festival 1516 Words Ã |Ã 7 Pagesvolunteers are doing and make conversation. The positive environment that Potter provides for clients, shoppers, and volunteers makes it a welcoming and comfortable place for everyone involved. While I was volunteering at Potter, I found it difficult to make time for. I thoroughly enjoyed spending time at Potter, but my busy schedule did not want to allow it. Work occupied thirty hours a week, and fifteen hours of class did not make the situation any easier. When I was able to go, I could only stayRead MoreAgeism Is Seen As A Significant Element2001 Words Ã |Ã 9 Pagesthrough its prejudice and stereotypes, affects social policy formation and its direct effects on older people. This will be achieved through accessing how ageism has become institutionalised throughout society, and how this shapes policy. Recognising ageism is such a broad spectrum, this essay will focus on how ageism effects the active ageing discourse, employment policies for older people and lastly, the effects of the dominance of neoliberalism in social policy for older people today. FurthermoreRead MoreAttitudes on Poverty Essay1636 Words Ã |Ã 7 PagesPennsylvania, the site of our study, has the largest share of its residents living in poverty in the United States according the Census Bureau data (Tavernise 2011). With poverty clearly an issue to its inhabitants, we are going to investigate localsÃ¢â¬â¢ attitudes towards poverty. Items that affect peoplesÃ¢â¬â¢ opinions on poverty include local context, political views, religion and education, race, gender, and family structure. LOCAL CONTEXT In his study Daniel Hopkins (2009) looked at the effect local contextRead MoreA Brief Note On Unemployment And Its Effects On Society1966 Words Ã |Ã 8 Pagesgander at month to month spending all the more nearly and from a point of view of purchasing what s truly required as opposed to simply needed. Along these lines, a fleeting monetary emergency can turn into the motivation you have to enhance or learn better cash overseeing abilities that can extend to the long haul. Way of life: Lifestyle changes that frequently go with unemployment are serious for a few individuals and difficult for most. Upset day by day schedules, less social connections and beingRead MorePoverty and Social Work Essay example8858 Words Ã |Ã 36 PagesFrom Poor Law to Welfare State: A History of Social Welfare in America- Walter I. Trattner Chapter 1: The Background The chapter traces the origin of welfare practices and caring for the needy from primitive times to the Elizabethan Poor Laws. References include Hammurabi, a Babylonian ruler who included protection of the vulnerable a part of his code in 2000 BC and the ancient Greeks and Romans (including Aristotle, 384-322 BC) who considered giving to charity a virtue. Perhaps more importantRead MoreWork Life Conflict4710 Words Ã |Ã 19 Pagesequitable and beneficial to both employer and employee. Work life balance plays a huge role in determining whether a person will reach career advancement. TodayÃ¢â¬â¢s workers have many competing responsibilities such as work, children, housework, volunteering, spouse and elderly parent care and this places stress on individuals, families and the communities in which they reside. Work-life conflict is a serious problem that impacts workers, their employers and communities.Ã Work life balance is theRead MoreRural Poverty Alleviation in Nigeria10400 Words Ã |Ã 42 Pagescollection and disposal, storm drainage, public transportation, access roads and footpaths, street lighting, and public telephones. In some countries, other neighborhood amenities such as safe play areas, community facilities, electrical connections, and social services become important in helping increase the standard of living so that the poor can break the cycle of poverty (World Bank 2001). Now breaking away from cycle of poverty is another way of saying alleviating poverty. WHAT IS ALLEVIATION? To alleviateRead MoreAn Employers Guide Inclusive Workplace16409 Words Ã |Ã 66 Pagesworkplace: Ã¢â¬ ¢ There is a welcoming workplace culture where everyone is treated with respect and dignity and everyone feels valued. Ã¢â¬ ¢ Policies are in place concerning equality and human rights, working conditions, dignity at work, employee welfare and fair recruitment and procurement practices. Ã¢â¬ ¢ Members of staff at all levels are aware of the inclusive values of the organisation and are actively consulted and involved in policy development. Ã¢â¬ ¢ The workforce is representative of the
Tuesday, May 19, 2020
Sample details Pages: 11 Words: 3208 Downloads: 5 Date added: 2017/06/26 Category Finance Essay Type Cause and effect essay Tags: Banking Essay Did you like this example? Banking regulation originates from microeconomic concerns over the ability of bank creditors depositors to monitors the risks originating on the lending side and from micro and macroeconomic concerns over the stability of the banking system in the case of bank crisis.In addition to statutory and administrative regulatory provisions,the banking sector has been subject to widespread informal regulation,i.e the governments use of its discretion,outside formalized legislation,to influence banking sector outcomes (for example,to bail out insolvent banks,decide on bank mergers or maintain significant State ownership) (Bonn,2005) Financial institution refers to an institution which deals with financial transaction such as investment,loans and deposits.Financial institutions constist of units such as banks,trust companies,insurance companies and investment dealers.These units which form financial institutions acts as channel between savers and borrowers of funds.Financ ial regulations are simply laws and rules which supervise financial institutions,as it happens all people depend on services offered by financial institution,it is imperative that they are regulated highly by the government.For example if a financial institution were to enter into bankruptcy as a result of controversial matters,this will no doubt cause panic and havoc as people start to question safety of their finances. Also this loss of confidence may have negative impact on the economy. Of all the financial institutions,banks is heavily regulated.Prevention of financial crisis may act as a major reason,while consumer protection may tall under minor reason.However bank regulations is unusual compared to another types of regulation as there is no wide agreement on what kind of market failures justifies regulation.Banks in one form or another have been subject to the following non exhaustive list of regulatory provisions:restrictions on branching and new entry,restrictions on pri cing (interest rate controls and other controls on prices or fees),line of business restrictions and regulation on ownership linkage among financial institutions,restrictions on portfolio of assets that banks can hold (such as requirements to hold certain types of securities or requirements and/or not to hold other securities,including requirements not to hold the control of non financial companies),compulsory deposit insurance (or informal deposit insurance,in the form of an expectation that government will bail out depositors in the event of insolvency),capital adequacy requirements,reserve requirements (requirements to hold a certain quantity of the liabilities of the central bank),requirements to direct credit to favored sectors or enterprises (in the form of either formal rules or informal government pressure),expectations that in the event of difficulty,banks will receive assistance in the form of lender of last resort,special rules concerning mergers (not always subject to co mpetition standard) or failing banks (e.g liquidation,winding up,insolvency,composition or analogous proceedings in the banking sector),other rules affecting cooperation within the banking sector (e.g with respect to payment systems).(Bonn.2005) Consider an overview of regulatory reform in banking:In early 70s financial systems were characterized by important restrictions on market forces which included controls on the prices or quantities of business conducted by financial institutions,restrictions on market access and in some cases controls on the allocation of finance amongst alternative borrowers.These regulatory restrictions served a number of social and economic policy objectives of governments.Direct controls were used in many countries to allocate finance to preferred industries during the post-war period:restrictions on markets access and competition were partly motivated by concern for financial stability;protection of small savers with limited financial knowledge was a n important objective of controls on banks and controls on banks were frequently used as instruments of macroeconomic management. This significant process of regulatory reforms in the financial systems of most countries has involved partial or complete liberalization of the following: Interest rate controls,-until the early 1970s controls on borrowings and lending rates were pervasive in most countries.These control typically held both rates below their free-market levels. DonÃ¢â¬â¢t waste time! Our writers will create an original "Banking Regulation Example For Free" essay for you Create order As a result banks rationed credit to privileged borrowers. By 1990 only a handful of countries retained these controls. Quantitative investment restrictions on financial institutitons:-this include requirements to hold government securities, credit allocation rules, required lending to favored institutions and controls on the total volume of credit expansion. Compulsory holdings of government securities as well as having a prudential justification,also acted as a disguised form of taxation in that it allowed governments to keep security yields artificially low, with some exceptions these controls were largely eliminated by the early 1990s. Line of business restrictions and regulations linkages among financial institutions,-although these restrictions still in place in many countries,the role of these restrictions has been significantly eroded or in some cases,entirely eliminated.For example,the separation of savings and loans and commercial banks has been largely eliminated in many countries as has the distinction between long-term and short-term credit institutions in Italy and the legal separation of various types of credit suppliers in Japan.Bank branching restrictions were phased out in a number of European countries by early 1990s.In the US breaking down the barriers imposed by the (1933) Glass-Steagall Act the Gramm-Leach-Bliley Financial Services Modernization act of 1999 permits banks,securities firms and insurance companies to affiliate within a new structure-the financial holding company Restrictions on the entry of foreign financial institutions,-there has been significant liberalization of cross-border access to foreign banks.In particular,there are now in place a number of international agreements on trade in banking services,including GATS,NAFTA and the EC.In particular in the European Union,the second banking directives (89/646/EEC) forbade the obligation for banks established in one Member State to seek authorization from other Member States when they intended to establish a branch in their territory.In many countries however the entry of foreign banks is still made more difficult than that of domestic ones. Controls on international capital movements and foreign exchange transactions,-liberalization of controls on capital movements is now virtually complete in OECD countries and in many developing countries as well.Some controls remain on long-term capital movements,particularly with respect to foreign ownership of real estate and foreign direct investment.There also remain important restrictions on international portfolio diversification by pension and insurance funds. Regulatory reform has raised efficiency and lowered costs in the financial services sector,First the removal of regulatory restrictions gave financial firms more freedom to adopt the most efficient practices and to develop new products and services.Second,regulatory reform increased the role of competition,which in turn spurred reductions i n margins in financial services and raised efficiency by forcing the exit or consolidation of relatively inefficient firms and by encouraging innovation. This has further more contributed to,declining relative prices for financial services and productivity growth well in excess of that for the economy as a whole,considerable improvements in the quality,variety and access to new financial instruments and services,improved world allocation of resources due to the removal of the barriers to international capital flows and a significant improvements in growth performance in a number of developing countries.(Bonn,2005) As a result of the above,banks have been the most highly regulated financial institutions through the following;- Deposit insurance:Deposit insurance is a guarantee that all or part of a depositors debt with a bank will be honored in the event of bankruptcy.The specific form of insurance schemes can vary in a number of ways,including the fee structure (flat fee versus variable,risk-related fees);the degree of coverage (full versus partial coverage,maximum limits);funding provisons (funded versus unfunded systems);public versus private solutions;compulsory versus voluntary participation. Deposit insurance reduces (and in most cases eliminates entirely) the incentive to run on the bank in the event of financial difficulty.Therefore it reduces the possibility that a temporary situation of illiquidity and rumors on the insolvency of the bank actually lead to the failure of the bank.Furthermore,deposit insurance prevents the chain reaction that can also be started associated by the run on a single bank,so that it reduces the possibility of contagion in the banking system. Capital adequacy req uirements:One regulation which exists in most countries is some form of capital adequacy requirements.Capital adequacy requirements can take a variety of forms.Most countries know a minimum level of required capital (an absolute amount).Beyond that,many countries require the maintenance of some capital-or solvency-ratio;that is a minimum ratio between capital and an overall balance sheet magnitude,such as total assets or liabilities,or some weighted measure of risk assets. This capital-adequacy may have some difficulties either with technological advances,innovation in financial products is rapid.regulations in contrast,might be changed not sufficiently frequently and only catch upwith current developments or in some cases the adaptation of new financial products is hindered by lagging regulatory developments,delaying and stifling the pace of innovation.(Bonn,2005) Lender of last resort:In most countries the central bank or the governments have an explicit (or implicit) policy of providing assistance to banks facing financial difficulties These lender of last resort interventions should be strictly limited to illiquid banks,easing only very temporary liquidity problems faced by banks (Emergency Liquidity Assistance),not extending also to help insolvent banks.In fact,whenever the lender of last resort assist insolvent banks,its intervention has the same consequences of a flat-rate unfunded deposit insurance,giving banks a strong incentives extend across the financial system,the macroeconomic consequences can be severe.(Bonn,2005) Capital requirements and asset restrictions:This explains how higher capital for banks(net worth) allows banks to protect themselves against bad loans and investments.(Philip,et al,2010)On capital,Basel III proposes significant changes to the composition of Tier 1 capital;risk weights,especially in trading books and changes in capital ratios.Basel III proposes many new capital,leverage and liquidity standards to strengthen the regulation,supervision and risk management of the banking sector.The capital standards and new capital buffers will require banks to hold more capital and higher quality of capital than under current Basel III rules.The new leverage ratio introduces a non-risk based measure to supplement the risk-based minimum capital requirements.The new liquidity ratios ensure that adequate funding is maintained in case of crisis.By preventing a bank from holding (too many)risky assets,asset restrictions reduce risky investments. Reserve requirements:Banks are historically required to maintain some deposits on reserve at the central bank in case of emergencies.Required reserve ensures that banks hold a certain proportion of high quality,liquid assets.In the days of the gold standard,banks might hold gold,either directly or with another bank as backing for deposits received or notes issued,but reserves cover could only be partial if banks were to conduct any lending business funded by deposi ts.This structure of partial reserve cover is sometimes referred to as fractional banking,banks held reserve assets equivalent to a fraction of their liabilities,particularly short-term liabilities,where outflows could happen most rapidly and liquidity cover was most important. Bank supervision:This provides the banks with regular monitoring and supervision by official authorities may prevent banks from engaging in risky activities.Also disclosure requirements to reduce asymmetric information problems.It also examine the conditions of banks and their compliance with laws and regulations,bank regulation includes issuing specific regulations and guidelines to govern the operations,activities and acquisitions of banking organizations. Conclusion The most important rationale for regulation in banking is to address concerns over the safely and stability of financial institutions the financial sector as a whole or the payments system.It is to avoid the highly negative consequences for the economy of widespread bank failures,it is also to prevent financial crises. (Bonn,2005)There are three policies considered as the most standard instruments of bank regulation:deposit insurance,capital adequacy requirements and lender of last resort.Deposit insurance protects the smallest depositors from a bank bankruptcy and prevents bank runs.Capital adequacy requirements are necessary in order to make sure that bank managers follow a responsible credit policy,in the absence of an effective control on the part of depositors.Lender of last resort policies further reduce the risk of banks bankruptcies providing banks with Emergency Liquidity Assistance facilities that are designed to avoid that temporary situation of illiquidity lead to th e insolvency of the bank. The following are the specific problems of bank regulation encountered in emerging markets:- Difficulties in Bank Supervision:Banks engage in information-intensive activities and their profitability also hinges on keeping that information private.This information asymmetry between banks and other economic agency such as borrowers,lenders and regulators can give rise to various problems.For example,information asymmetry between the bank on one side and borrower and lenders on the other hand can result in bank runs and subject banks to contagion type problems.Moreover in countries where government guarantees exist,regulations alone have proved to be insufficient to control bank behavior.(Ralph Chami,et al 2003) Difficulties in Deposit Insurance:Deposit insurance as its names implies,provides a guarantee that certain types of bank liability are convertible into cash even if banks are insolvent,thus offering consumer protection and depending on coverage removing the incentive for runs on solvent banks by uninformed depositors.To avoid insuring all of the system (including w holesale depositors who should not suffer from severe information asymmetries),there are usually limits to coverage. The problem encountered in deposit insurance is in the case of large banks judged too big to failall depositors may be paid off unlike the lender of last resort,deposit insurance can not be used at the regulators discretion,which thus aggravates agency problems; and workable means of relating premier to risk, and thus preventing an implicit subsidy to shareholders;have proved difficult to devise instead they are usually flat fees related to the size of balance sheets. A drawback of its introduction is however the fact itself that from the point of view of the depositor,deposit insurance makes all banks equally attractive.It almost completely removes the incentive on the depositor to determine the risk of a bank and the need for the bank to compensate the depositor for bearing bank-specific risk by including bank-specific risk premium in the interest paid to the depositor.Similarly,the depositor faces little incentive to diversify her portfolio of assets held in banks.(Bonn,2005) All of these my lead to severe moral hazard problems;in particular,when a bank does not bear the consequences,either via cost of funds or deposit insurance premier of increasing portfolio risk or reducing capital,it has incentives to pursue such policies beyond the point it would otherwise,financed by higher interest rates on deposit than can safely be sustained.A response in some countries is to restrict deposit insurance coverage severely,so it effectively only becomes a partial protection for small retail depositors.This include a degree of monitoring and market discipline by wholesale depositors.However,the effectiveness of such monitoring will be limited if there is imperfect information-thus implying a need for adequate disclosure standards as a complement to limited deposit insurance (Davis,1993) Capital requirements and Asset restrictions:Capital requ irement is more difficult internationally due to the reason that different assets have different characteristics.According to Darryl Biggaret al,2005 report on an increasing role for competition in the regulation of banks capital adequacy requirements do have certain difficulties: First,it is difficult to design capital-adequacy requirements in a sufficiently sophisticated way.For example even though the 1988 Basel rules on capital adequacy for banks categorizes assets and assigned a risk-weighting inevitably differences in risk were overlooked between individual assets.One consequence was that banks intended to search for the most risky assets within a risk class,encouraging banks to go up the yield curve in pursuit of a return on capital.In effect,the moral hazard problem re-emerged within the constraints of each regulatory risk class. A particular problem can arise with inter-bank lending.If inter-bank lending is treated favourably for capital-adequacy purposes in order to promote the liquidity on the market,banks may persevely be given incentives to lead other banks in difficulty,increasing the risk of contagion and removing one of the more important disciplines on bank risk-taking.Rapid technological advances and innovation in financial products. In order to recognize these problems of capital requirement,Basel Accord was modified in 2004 by introducing more sophisticated ways of computing capital requirements and increasing the focus on risk-management policies and systems in banks. Non existence of international lender of last resort:In most countries the Central bank or the government has an explicit or implicit policy of providing assistance to banks facing financial difficulties. According to EP Davis (2005),Lender of last resort is defined as an institution usually a central bank,which has the ability to produce at its discretion currency or high powered money to support institutions facing liquidity difficulties.Lender of last resort always is strictly to limited illiquid banks,easing only very temporary liquidity problems faced by banks and not extending to help insolvency banks. Lender of last resort increases moral hazards for banks to take on too much risk for example banks may ask assistance from central bank when they are illiquid,but when they obtain the fund they may invest it in a risk investment.Another problem is differing levels of deposit insurance that may put asymmetric burden on lender of last resort. Existence of non-bank financial institutions:Non-bank financial institutions are institutions which resemble banks in many aspects,i.e savings and loans,credit unions,investment and merchant banks,Islamic banks and industrial banks.Due to the rapid growth of this non-bank institutions,the problem of regulating banks has become so difficulty because banks are trying to engage themselves I those non-banking activities inorder to retain customers.For example in Tanzania,CRDB Bank has affiliated with Vodacom on M-Pesa Services. Most of these non-bank financial institutions lack regulations and supervision therefore there is no assurance for customers,due to lack of legal enforcement.Non-bank financial institutions lack the most significant regulation of banks such as supervision,capital adequacy requirements,restriction on bank holdings and restrictions on large exposures. Complications of financial derivatives and securitized assets: According to (John Cox et al, 2010) securitization is the process when an asset is converted into marketable security.Due to this process during financial crisis it can lead to a major problem because both regulators and private sectors are unable to assess the financial risk and the complexity of the instrument, since it is difficult for the bank to evaluate the risk involved in the securitized instrument adequately. Conclusion In conclusion on the problems of bank regulations encountered in emerging markets we can take a look on bank supervision,deposit insurance and lender of last resort which are the most problems facing bank regulations that need more attention. We have seen all of these problems, finally led banks to commit moral hazards, therefore strong measures need to be taken on how to reduce or eliminate moral hazards as a final product of these problems. This can be done through strong monitoring, transparency and disclosure of all bank activities, currently updates of bank regulations according to economic reforms.
Friday, May 15, 2020
Reason and love in A Midsummer NightÃ¢â¬â¢s Dream ShakespeareÃ¢â¬â¢s A Midsummer NightÃ¢â¬â¢s Dream is often read as a dramatization of the incompatibility of Ã¢â¬Å"reason and loveÃ¢â¬ (III.i. 127), yet many critics pay little attention to how Shakespeare manages to draw his audience into meditating on these notions independently (Burke 116). The play is as much about the conflict between passion and reason concerning love, as it is a warning against attempting to understand love rationally. Similarly, trying to understand the play by reason alone results in an impoverished reading of the play as a whole Ã¢â¬â it is much better suited to the kind of emotive, arbitrary understanding that is characteristic of dreams. Puck apologises directly to us, the audience,Ã¢â¬ ¦show more contentÃ¢â¬ ¦48) without the ability to look beyond what he sees. The notion of fantasy versus reality is not limited only to the fairies, however; Shakespeare makes his audience aware of supernatural elements in other characters as well by his use of different styles of verse. Furthermore, by comparing the play-within-a-play, and the royalsÃ¢â¬â¢ response to it, to the larger narrative, Shakespeare gives further warning against literalising the effects of the play. Metaphor pervades the play and the play should likewise be read as metaphor. There are three distinct levels of action during the play. Firstly, we as the audience see the characters play out the main narratives. Secondly, Shakespeare introduces a play-within-a-play during which the audience observes the mechanicals acting out their tragedy, and thirdly, as part of an epilogue, we are addressed directly by Puck. These differing levels of viewing the play encourages the audience to reflect upon, and compare, the interplay between the levels of address; when the three levels are compared to each other a deeper reading of the play becomes possible, even though the structure is irrational with regards to rational narrative structures. The dramatic conflict is resolved after the fourth act, begging the question of why Shakespeare opted for a play-within-a-play for his final act. The effect of Ã¢â¬Å"NatureÃ¢â¬ (V.i. 278) is contrasted between the mainShow MoreRelatedWeathering the Storms of True Love1159 Words Ã |Ã 5 Pages Sitting on a porch swing with ones true love hugging and kissing as the moon smiles down upon them, seems like the perfect situation for true love. Unfortunately, nothing could be further from the truth. Shakespeare presents the truth about true love in his comical tragedy A Midsummer Nights Dream. Lysander clearly stated loves situation when he told Hermia the course of true love never did run smooth (Griffiths 94). In some ways Lysanders declaration becomes the plays structuralRead MoreWilliam Shakespeare s A Midsummer Night s Dream1474 Words Ã |Ã 6 Pagesincreasing bar of literary works. A reason for this could be the inclination of everyday people to the consistent and underlying concept of romance in each of ShakespeareÃ¢â¬â¢s plays and related movies. For instance, one could look at the movies A Midsummer NightÃ¢â¬â¢s Dream and Shakespeare in Love. The latter follows the life of William Shakespeare himself, everything from his love affair with Viola de Lesseps to his cr eation of Romeo and Juliet. A Midsummer NightÃ¢â¬â¢s Dream, is one of the most famous plays ofRead MoreThe Theme of Love in A Midsummer Nights Dream by William Shakespeare1563 Words Ã |Ã 7 PagesThe Theme of Love in A Midsummer Nights Dream by William Shakespeare In A Midsummer Nights Dream, Shakespeare presents us with multiple types of love by using numerous couples in various different situations. For example: Doting loves, the love induced by Oberons potion and in some aspects, Lysander and Hermias love for each other; there are true loves: Oberon and Titania, Lysander and Hermia (for the first half at least, as Lysanders love switches to Helena temporarily)Read MoreEssay on Analysis of Rationality In A Midsummer Nights Dream1058 Words Ã |Ã 5 PagesWilliam ShakespeareÃ¢â¬â¢s A Midsummer NightÃ¢â¬â¢s Dream is not simply a light-hearted comedy; it is a study of the abstract. Shakespeare shows that the divide between the dream world and reality is inconstant and oftentimes indefinable. Meanwhile, he writes about the power of the intangible emotions, jealousy and desire, to send the natural and supernatural worlds into chaos. Love and desire are the driving forces of this playÃ¢â¬â¢s plot, leaving the different characters and social classes to sort out the resultingRead MoreLiterary Love Essay968 Words Ã |Ã 4 PagesLove - possibly the most powerful four-letter word known to man. A feeling and emotion so strong that it makes it nearly impossible to put its meaning into words. However, it is also one of the most explored subjects in the world of literature. Whether in a comedy or a tragedy, the theme of love is v ery often expressed. This theme can be expressed in many different ways, for example, positively causing everyone to live happily ever after in a fairytale type of world, negatively being the causeRead MoreThe Anatomy Of Criticism By Northrop Frye991 Words Ã |Ã 4 Pageslife and love over the waste landÃ¢â¬ (Frye). This structuralist approach is crucial to analyzing Shakespeare s comedy A Midsummer NightÃ¢â¬â¢s Dream. One finds that the play revolves around many different pairs of oppositions, in particular that of the court and the forest. Analyzing the play with this structuralist point of view underscores the archetypal qualities of the court (the real world) and the forest and provides a deep contrast between both mythic locations. A Midsummer NightÃ¢â¬â¢s Dream begins inRead MoreA Midsummer Night s Dream Essay854 Words Ã |Ã 4 PagesA Midsummer NIghtÃ¢â¬â¢s Dream A Ã¢â¬Å" Midsummer NightÃ¢â¬â¢s DreamÃ¢â¬ is a classical play written by William Shakespeare. It is one of his more eccentric piece of work. The play is about the struggle of love between four essential characters: Hermia, Lysander, Demetrius , and Helena. However, it is not quite that simple. The play is quite confusing. In Ã¢â¬Å"Midsummer NightÃ¢â¬â¢s dreamÃ¢â¬ the play take place in two realms fairy realm and human realm, two of the three main settings. Another one of the settings take placeRead MoreSimilarities Between Hamlet And A Midsummer Nights Dream1324 Words Ã |Ã 6 Pagesand A Midsummer NightÃ¢â¬â¢s Dream, is the concept of a play within a play. This concept helps create suspension because both plays critically involve the topic death, but they also shed light unto Shakespeare as a poet because it plays with the idea of meta-theatre. Another similarity between the two plays is that they include a message regarding absurd love. Ã¢â¬Å"Pyramus and ThisbeÃ¢â ¬ focuses on two doomed lovers in a comical way, whereas Ã¢â¬Å"The MousetrapÃ¢â¬ in Hamlet doesnÃ¢â¬â¢t address the concept of love directlyRead MoreThe Roots Of Fantasy Assignment : A Midsummer Night s Dream911 Words Ã |Ã 4 PagesThe Roots of Fantasy Assignment: A Midsummer NightÃ¢â¬â¢s Dream William ShakespeareÃ¢â¬â¢s A Midsummer NightÃ¢â¬â¢s Dream was written in the early modern period somewhere between 1595 and 1596. The play showcases elements of the fantasy genre which not only influence the plot and overall world of the play but significantly developed and contributed to the genre itself. Shakespeare contrasts the lawful setting of Athens with the enchanted, magical world of the forest, capturing how the role of imagination andRead MoreA Midsummer Night s Dream1094 Words Ã |Ã 5 PagesJeana Jago Theater History J. Robideau October,1st 2015 A Midsummer NightÃ¢â¬â¢s Dream In a Midsummer NightÃ¢â¬â¢s Dream, Shakespeare story about romantic desire. Theseus and Hippolyta, are about to be married; both of them are wonderful figures from classical mythology. (Greek Mythology) Theseus is a great warrior, a kinsman of Hercules; Hippolyta is an Amazon warrior-woman, defeated in battle by Theseus. (Theseus and Hippolyta) He was longing for the wedding day, and this is what opens the play and closing
Wednesday, May 13, 2020
Sample details Pages: 15 Words: 4405 Downloads: 3 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? In the last 5 Years the Indian Microfinance sector has witnessed tremendous growth, during which Microfinance institutions were subject to hardly any regulation. Most of the Microfinance institutions during that period were only subject to prudential requirements; but there was no regulation to address fair lending practices, pricing, or operations. The combination of minimal regulation and tremendous growth in the sector led to an environment where customers were increasingly dissatisfied with services offered by Microfinance institutions, culminating in the Andhra Pradesh crisis in the fall of 2010. DonÃ¢â¬â¢t waste time! Our writers will create an original "Services Offered By Microfinance Institutions Finance Essay" essay for you Create order Leading up to the Andhra Pradesh crisis, microfinance institutions were experiencing a huge influx of equity and debt investment from both Indian and Foreign Financial institutions. Some Microfinance institutions were doubling their book size each year, aiming to reach more areas and customers. As institutions started scaling up quickly, MFI employee hiring and training processes were less thorough, resulting in employees who were involved in inappropriate collection practices and lending models that led to customer over-indebtedness. In August 2010, SKS Microfinance held the first initial public offering (IPO) for a microfinance institution in India, raising USD 347 million and drawing attention to the potential profits of the sector. Media reports took different viewpoints on the IPO, some celebrating the sector, and others characterizing the profits as taking advantage of the poor. Further reports cited links between Microfinance Institutions (MFIs) lending and suicides in A ndhra Pradesh. The incident culminated when Andhra Pradesh Chief Minister passed the Andhra Pradesh Microfinance Ordinance 2010, which includes a number of measures that greatly restricts microfinance institutions operations. As a result of the ordinance, and the general attitude towards microfinance in Andhra Pradesh, loan repayments dropped dramatically. Due to low repayment rates, microfinance institutions, with exposure to Andhra Pradesh, suffered significant losses. Banks stopped lending to microfinance institutions all over India, for fear that a similar situation would occur elsewhere, resulting in a liquidity crunch for microfinance institutions, which are largely dependent on bank lending as a funding source. With the sector at a standstill, microfinance institutions, microfinance clients, banks, investors, and local governments were calling for new regulation to address the prominent issues of the sector. The Reserve Bank of India (RBI) responded by appointing an RBI sub-committee know as the Malegam Committee. This committee aimed to address the primary customer complaints that led to the crisis, including coercive collection practices, usurious interest rates, and selling practices that resulted in over-indebtedness. The existing regulations did not address these issues, thus, who should respond to these issues, and how they should respond, was uncertain. This prolonged the general regulatory uncertainty and the resulting repayment and institutional liquidity issues. The Malegam Committee released their recommended regulations in January 2011. These recommendations were broadly accepted by RBI in May 2011, though specific regulation was only released regarding which institutions qualify for priority sector lending at this time. Additionally, an updated version of the Micro Finance Institutions (Development and Regulations) Bill 2011 is in Parliament, which aims to provide a regulatory structure for microfinance institutions operating as societies, trusts, and cooperatives. Although this shows that regulators are taking steps to address the crisis issues and resolve regulatory uncertainty, banks have not resumed lending to microfinance institutions as of July 2011. In this paper, we will analyze the strengths and weaknesses of the current regulatory structure in India, including the pending Malegam Micro Finance Institutions (Development and Regulations) Bill 2011. We will perform a case study analysis regarding how microfinance institutions are viewing and implementing the new RBI regulation, and conclude by offering a perspective regarding the future of microfinance regulation in India. Existing Regulatory Framework The current regulatory structure currently consists of the regulation prior to the Andhra Pradesh crisis, various state legislations, and the partial implementation of the Malegam Report by RBI. This section will also include recent proposed legislation, including items from the Malegam Report that have not yet been addressed by RBI and the Micro Finance Institutions (Development and Regulations) Bill 2011. Legal Structure A microfinance institution acquires permission to lend through registration. Each legal structure has different formation requirements and privileges. Microfinance institutions in India are registered as one of the following five entities: Non Government Organizations engaged in microfinance (NGO-MFIs), comprised of Societies and Trusts Cooperatives registered under the conventional state-level cooperative acts, the national level multi-state cooperative legislation Act (MSCA 2002 ), or under the new state-level mutually aided cooperative acts (MACS Act) Section 25 Companies (not-for-profit) For-profit Non-Banking Financial Companies (NBFCs) NBFC-MFIs NGO-MFIs, Cooperatives, and Section 25 Companies Microfinance institutions operating as a non-profit company operate as either an NGO-MFI, Cooperative, or Section 25. Each is structured slightly differently in terms of ability to accept equity investments and dividends. There exists little regulation that applies to these structures, aside from registration requirements. NBFCs The mainstream financial sector in India is divided primarily into two categories, banks and NBFCs. Banks adhere to much more stringent regulation than NBFCs because they are permitted to accept public deposits and are considered to possess systemic risk. The NBFC encompasses many different types of financial companies, which are all subject to the same regulatory 4 requirements. Many microfinance institutions have recently registered as NBFCs to take advantage of access to capital markets. Microfinance institutions operating as NBFCs account for the great majority of the microfinance market in India, with about 50 NBFCs responsible for 80 percent of all microfinance loans (by outstanding portfolio)4. NBFC-MFIs For-profit institutions that qualify for priority sector lending funds are registered as NBFC-MFIs. This NBFC sub-category was created by RBI in May 2011 as a way to classify NBFCs operating as microfinance institutions which meet certain requirements. Currently, it is unclear how many NBFCs will elect to register as NBFC-MFIs, and how many will continue to operate as NBFCs. Current Regulation Very little regulation exists for NGO-MFIs and Cooperatives, aside from registration with a local or state authority. Currently there is no regulator that oversees NGO-MFIs, Cooperatives, and Section 25s. RBI is the regulator for NBFCs. NBFCs are subject to some prudential regulation, including a minimum capital requirement, a capital adequacy requirement, and foreign investment restrictions. Since NBFCs encompass many types of financial institutions, microfinance institutions operating as NBFCs are subject to no specific regulation relating to lending, pricing, or operations. Recent regulatory discussion surrounds the partial acceptance of the Malegam Report by RBI in May 2011, where RBI created the NBFC-MFI designation. RBI stated that it broadly accepts the Malegam Committee recommendations, although specific regulation was released only to determine which institutions qualify for priority sector lending. The new regulation from RBI, currently, only applies to the newly creat ed NBFC-MFI category. Microfinance institutions operating under other legal structures face minimal regulatory requirements, aside from registration, though recent drafts of the pending Micro Finance Institutions (Development and Regulations) Bill 2011, has put all microfinance institutions under the jurisdiction of RBI. There has been dramatic change in the regulation of microfinance institutions recently, with much more change expected to follow in the coming months. We will discuss major regulatory points, including priority sector lending, deposit mobilization, access to capital, the Money Lending Act, and state level regulation. We will also discuss pending regulation, including portions of the Malegam Report which have not been specified by RBI, and the Micro Finance Institutions (Development and Regulations) Bill 2011. Priority Sector Lending Priority sector lending is a government initiative which requires banks to allocate a percentage of their portfolios to investment in specified priority sectors at a reduced interest rate. Currently only microfinance institutions registered as NBFC-MFIs are designated as a priority sector. The number of priority sectors has recently been reduced, which suggests that banks will rely more heavily on lending to microfinance institutions to meet the priority sector requirements. In order to register as a NBFC-MFI, an institution must meet requirements specified by RBI5. RBI requires that a minimum of 75% of a NBFC-MFIÃÆ'Ã ¢Ã ¢Ã¢â¬Å¡Ã ¬Ãâ¦Ã ¸s loan portfolio must have been originated for income-generating activities. Additionally, an NBFC-MFI must have 85% of its total assets as qualifying assets (excluding cash, balances with banks and financial institutions, government securities and money market instruments). A qualifying asset is a loan which meets the following criteria: Borrowers household annual income does not exceed Rs. 60,000 or Rs. 1,20,000 for rural and urban areas respectively Maximum loan size of Rs. 35,000 (first cycle) and Rs. 50,000 (subsequent cycles) Maximum borrower total indebtedness of Rs. 50,000 Minimum tenure of 24 months when loan exceeds Rs. 15,000 No prepayment penalties No collateral Repayable by weekly, fortnightly or monthly installments, at the choice of the borrower An NBFC-MFI must also adhere to the following pricing requirements: Margin cap of 12% Interest rate cap of 26% Only three pricing components Interest rate Processing fee (maximum 1%) Insurance premium No penalty for delayed payment No security deposit or margin can be taken Banks are responsible for ensuring that the institutions receiving priority sector funds adhere to these requirements, with verification through a quarterly Chartered Accountants Certificate. Securitized assets may also qualify as priority sector assets if an institution meets these requirements. We assume that NBFC-MFIs must also adhere to general NBFC requirements. Accepting Deposits Current regulation stipulates that only NBFCs and Cooperatives are permitted to accept deposits, though NBFCs must adhere to additional stringent regulations6 and Cooperatives are only permitted to accept deposits from their members, not the general public. The deposits limit for NBFCs is linked to the size of an institutions Net Owned Fund (NOF). No microfinance institution registered as an NBFC, currently accepts deposits because regulation requires that institutions must obtain an investment grade rating, which no microfinance institution has obtained. Uncollateralized loans are considered more risky by rating agencies, making it unlikely that microfinance institutions, utilizing joint-liability groups as collateral, or not requiring collateral at all, will be able to attain an investment grade rating. The Malegam Committee made no recommendations regarding deposit-taking, thus RBI is not expected to address this issue for NBFC-MFIs in the near future. Financing Restrictions Access to capital is determined primarily by an institutionÃÆ'Ã ¢Ã ¢Ã¢â¬Å¡Ã ¬Ãâ¦Ã ¸s registration status. Some registration entities are better suited to access traditional financing, such as bank lending, equity, and more sophisticated financial products, while others obtain funds through donations, grants, or members. NBFCs can receive both equity and debt investments. NBFCs can raise foreign equity investment, though a minimum investment USD 500,000 restriction applies, which cannot result in more than a 51% stake in the institution. Grants and subsidized on-lending funds from domestic and foreign sources are not restricted provided that the foreign grants should not exceed the ceiling of USD 5 million per year. RBI regulates NBFCs that are not listed on a public stock 7 exchange. RBIÃÆ'Ã ¢Ã ¢Ã¢â¬Å¡Ã ¬Ãâ¦Ã ¸s Foreign Investment Promotion Board (FIPB) has mandated the following foreign direct investment (FDI) for NBFCs: Maximum 51% FDI for companies with capitalization USD 500,000 or less Maximum 75% FDI for companies with capitalization USD 500,000 5 million No maximum FDI for companies with capitalization greater than USD 50 million Investors of foreign origin fall under the above restrictions for foreign capital, even if channeled through local semi-independent funds. Two of the main sources for domestic capital are currently SIDBI and NABARD, and emerging local microfinance focused funds such as Bellwether Microfinance Fund and Aavishkaar Goodwell7. NBFCs are also the only entities that attract more sophisticated financial options, such as securitization or non-convertible debentures, where additional RBI guidelines apply. RBI has not addressed any investment regulation regarding NBFC-MFIs, so at this point we presume that these institutions must adhere to the same requirements as NBFCs. Section 25 companies have difficulty attracting equity investments because they are unable to offer dividends and exit opportuniti es are difficult to predict. They can access External Commercial Borrowing (ECB) up to USD 5 million, though many Section 25s end up borrowing significantly less than the USD 5 million limit, due to leverage limitations. Other MFI forms cannot accept equity investments. Microfinance Institution Self-Regulation Microfinance institutions in India often voluntarily join an industry association, which acts as a commitment and guide for self-regulation. Microfinance industry associations have been developed to better discussion with policy makers, improve capacity building, and identify minimum standards of performance through institutional collaboration and commitment. An industry association will identify a code of conduct for its members, which will focus on fair practices with borrowers and among member organizations. This code of conduct will address lending methods, collection practices, institutional transparency, and training practices for member institutions. Often institutions will be required to develop their own code of conduct as well, which more specifically addresses how the institution will uphold the fair practices outlined by the industry association. Currently, the two biggest industry associations in India are the Microfinance Institutions Network (MFIN) and Sa-dhan. Both of these associations offer a great deal of resources, guidance, and forums for institution discussion so that the most pressing issues facing the industry can be collectively addressed. State Level Regulation Various requirements have been enacted to restrict and control microfinance practices at the state level. The most prominent state level regulations are the Money Lending Act and the Andhra Pradesh Micro Finance Institutions (regulation of money lending) Ordinance, 2010. The Money Lending Act, though originally intended to restrict the interest rates charged by money lenders, has been applied to microfinance institutions in some states. The Andhra Pradesh Ordinance was enacted in 2010 during the repayment crisis in Andhra Pradesh (AP), greatly restricting microfinance institution operations by including measures such as district by district registration, required collection near local government premises, and forced monthly repayment schedules. Pending Regulation: The Malegam Report RBI broadly accepted the Malegam Report8 and specified regulation detailing the requirements and institution must meet to qualify for priority sector lending. RBI has stated that it will release m ore regulation in the coming months. Some of the new regulation for priority sector lending is exactly the same or very similar to the Malegam Report recommendations, while other parts of the regulation are entirely different than the committee recommendations. As a result, predicting the specifics of the new regulation is difficult, so below we have highlighted the drawbacks of major sections of the Malegam Report that have yet to be addressed. Over-Indebtedness A set of recommendations aims to enforce maximum indebtedness levels without the use of a customer credit information system. These include: MFIs can only lend to members of a Joint Liability Group (JLG) A borrower cannot be a member of more than one SHG/JLG Not more than two MFIs can lend to one borrower All of these limits restrict the choices of consumers. A consumer has the best knowledge of how much credit is he requires and how much he can repay. Though there is more individual risk, individuals will have more opportunities to meet their financial needs without these 9 restrictions. If this loan limit is imposed, the unmet demand from formal sources might force the consumers to borrow from money lenders and other informal sources with more severe consequences. Additionally, implementation of these requirements will be difficult since currently customers report their own indebtedness. Until a credit reference system is put in place, it will be impossible to accurately gauge household total indebtedness. Documentation and Transparency Documentation recommendations intend to increase transparency of product costs and risks, so that consumers are better informed to make decisions and compare products to those offered by other institutions. These include: MFIs must provide borrowers a loan card which shows the effective rate of interest, other terms and conditions of the loan, information which adequately identifies the borrower, and acknowledgements of payments received Effective rate of interest must be displayed in all offices, all literature, and on website Standard loan agreement These measures do increase product transparency and could greatly benefit the decision process of the consumer. The only concern is that when implemented, these requirements could potentially burden and slow the lending process, or provide too much information for less financially literate clients to interpret. Collection Practices Collection practice restrictions aim to stop coercive and abusive collection techniques, which were a major complaint of consumers leading up to the AP crisis. These include: Sanctioning and disbursement of loans should be done only at a central location Field staff should not be allowed to make recovery at customers place of residence or place of work All recoveries should be made at the group level More than one individual should be involved in sanctioning and disbursement Disbursement should be closely supervised MFIs and their management teams should be subject to severe penalties if coercive methods of recovery are used. Regulators should monitor systems for recruitment, training, and supervision of field staff Although these restrictions would reduce coercive and abusive collection techniques, they greatly restrict the operations of microfinance institutions, and may deter some lending methodologies that offer greater convenience to the customer. The r estrictions also do not allow for individual lending, which could be a beneficial product offering for customers. The best way to protect consumers from MFI collection malpractices is to have a well-functioning complaint redressal procedure, so that if inappropriate actions occur, the regulator and the institution can respond appropriately. Credit Information Bureau One or more Credit Information Bureaus should be established and operational as soon as possible All MFIs should be required to become members of a bureau MFIs are responsible for obtaining information from potential borrowers until bureau is functional The recommendations of the Malegam Committee focus on the important limitations of existing regulation. However, further amendments based on research and policy discussions must be made so that the regulatory framework optimizes the short and long term benefits to consumers and institutions. Pending Regulation: Micro Finance Institutions (Development and Regulations) Bill 2011 The Micro Finance Institutions (Development and Regulations) Bill 201110 is an updated version of an earlier bill drafted in 2007. The bill has been re-drafted several times, with the most recent draft released in July 2011 to consider the most recent RBI regulation. The bill addresses all legal forms of microfinance institutions, providing a comprehensive legislation for the sector. New regulation includes: Designation of RBI as the sole regulator for all microfinance institutions, Power to regulate interest rate caps, margin caps, and prudential norms All microfinance institutions must register with RBI Formation of a Micro Finance Development Council, which will advise the central government on a variety of issues relating to microfinance Formation of State Advisory Councils to oversee microfinance at the state level Creation of Micro Finance Development Fund for investment, training, capacit y building, and other expenditures as determined by RBI The designation of RBI as the sole regulator would be a positive step forward for the sector. Though the specifics of regulation are yet to be determined, having one respected regulatory who is acknowledged as in charge of all aspects of the sector would lead to a great reduction of regulatory uncertainty. If the bill passes, a greater challenge will remain; RBI must effectively regulate and monitor a great number of microfinance institutions that have previously been subject to very little regulation . Current Regulation Limitations Much of the new regulation following the Malegam CommitteeÃÆ'Ã ¢Ã ¢Ã¢â¬Å¡Ã ¬Ãâ¦Ã ¸s proposals will be released in the coming months, so we will refrain from further commenting on the current lack of regulation relating to certain issues that will certainly be addressed. Rather, we will focus our analysis on the limitations of the regulatory structure to problems with enacted regulation and issues that we suspect that RBI will not address, specifically the lack of clarity regarding central and state regulatory jurisdiction, implementation of priority sector lending qualification, the margin and interest rate caps, institution funding restrictions, and the inability of institutions to take public deposits. State vs. Central Regulatory Jurisdiction Uncertainty A major limitation of the current regulation is the lack of clarity regarding central and state regulatory jurisdiction. During late 2010 and early 2011, both Andhra Pradesh and Gujarat passed legislation barring specific microfinance practices within the state, requiring specific consumer protection policies and capping interest rates. States currently have great discretionary power as to how to interpret the Money Lending Act. Stability and confidence will elude the sector until this regulatory ambiguity is resolved. Implementation of Priority Sector Lending Qualification A second limitation is the implementation of the new RBI requirements regarding priority sector lending, particularly with regard to borrower income and borrower indebtedness. Since there are no tax filings or credit reports for the majority of microfinance customers, this information is often reported by the customer. Thus, customers have incentive to misrepresent their income and indebtedness in order to qualify for a loan. Without a functioning credit bureau, these customer characteristics requirements are impossible to accurately enforce. Margin and Interest Rate Cap Another limitation is a universal margin and interest rate cap could be detrimental for the sector, since it would most likely result in the reduction of financial services in various areas and populations where returns would not justify the operating costs. An interest rate cap should take into account various factors that typically affect the cost of operation, such as area of operation, average loan amount, legal form, and size of the microfinance institution. When interest rate caps have been implemented on microfinance services in other countries, microfinance institutions have pulled out of rural areas, stopped serving the poorest of the poor, increased the average loan size, and have had difficulty remaining solvent11. Lack of Funding Diversification Lack of diversification of funding is also problematic for microfinance institutions due to current regulation regarding access to capital. Microfinance institutions are highly dependent on lending from Indian banks, which was problematic when all of the banks stopped finding microfinance institutions to be credit-worthy during the AP crisis. Though microfinance institutions may diversify lending amongst Indian banks, these banks tend to view the microfinance sector very similarly, resulting in a lack of diversification benefits. Finally, allowing microfinance institutions to accept public deposits would add a source of funding diversification and benefit the customer. Customers may be able to better smooth consumption and resist the temptation to spend if they have access to a savings product. Regulation should permit institutions that meet reasonable prudential qualifications to accept public deposits. An alternative to the current system would be to base the strength of a 13 microfinance institution on ratings that come from agencies or methods that specialize in the unique microfinance lending methodology12. MFI Response to New RBI Regulation The Centre for Microfinance interviewed over 30 MFIs in the summer of 2011i, asking them about their response to the recent regulation and their perspectives on the sector in general. In this section, we will generally review the responses, and look at three institutionsÃÆ'Ã ¢Ã ¢Ã¢â¬Å¡Ã ¬Ãâ¦Ã ¸ responses to highlight some individual issues arising as a result of new regulation. Overview Overall, the surveyed MFIs reported that national regulation has been needed for a long time. They feel that the new RBI regulations are not clear or well communicated, and the banks that previously acted as sources of funding are more cautious and selective in offering financial support. However, MFIs felt the RBI regulation could protect MFIs against the implementation of restrictive state legislation. One of the primary concerns expressed by the interviewed MFIs involved how equitable the new regulations will be for institutions of different sizes. A Section 25 organization stated that the uniform policy would be more difficult for smaller MFIs to adapt and adhere to if applied to all, resulting in smaller institutions being pushed out of the market by more flexible larger organizations. There is also question over how difficult it will be for new start-up microfinance organizations to meet the demands of the market. Several MFIs have also expressed concern over the requir ement that a minimum of NBFC-MFIÃÆ'Ã ¢Ã ¢Ã¢â¬Å¡Ã ¬Ãâ¦Ã ¸s loan portfolio must be used for income-generating activities. Several MFIs have recognized that a large proportion of clients use loans for consumption, rather than productive purposes. The MFIs responded with mixed opinions in regard to the interest rate and margin cap. While several of the institutions described the margin as reasonable, one MFI reported that these new restrictions on margins and interest rates are too stringent, and they will limit product innovation. Additionally, operating costs vary across regions, and these caps may not be high enough to support initiatives in remote areas. Another institution stated that the margin cap would act as an incentive for MFIs to scale up at a greater rate. One aspect of the regulation to which all MFIs responded positively was recommendation for the creation of a credit bureau and the mandatory membership of all MFIs. Currently, an appraisal of a clientÃÆ'Ã ¢Ã ¢Ã¢â¬Å¡Ã ¬Ãâ¦Ã ¸s credit-worthiness is expensive, timely, and often inaccurate. Many MFIs felt a credit bureau could act as a more accurate tool for reviewing indebtedness and repayment history. The Future of Regulation The latter half of 2011 will be telling for the future of the microfinance regulatory regime as RBI further clarifies the acceptance of the Malegam Report and its role with regards to microfinance institutions operating as NGO-MFIs, Cooperatives, and Section 25s. Regulation will surely be 17 refined as microfinance institutions implement the new requirements and consumers and regulators see a theoretical framework put into practice. The initial round of RBI regulation in 2011 aimed to assuage consumer fears and create an environment where bank lending will presume by directly addressing borrower indebtedness and loan pricing. We suspect that as the sector returns to a state of normalcy, some of the more restrictive requirements will be lessened or eliminated. In the meantime, the regulation seems to heavily favor larger institutions who can adapt to the changes more easily due to economies of scale, advanced MIS systems, and higher operational efficiencies. As a result, we ma y see smaller institutions failing or consolidating in the near term. We may also see more innovative companies and microfinance models that aim to circumvent the new regulatory structure, especially since an institution can continue to lend to microfinance clients as an NBFC with no new regulation. Regulation will respond to these innovations as well, either by endorsing them or disallowing them, depending on fairness and the success of implementation. The great benefit of the Andhra Pradesh crisis and the resulting call for regulation is that the sector has seen the consequences of a model that is not customer centric. Institutions, investors, and regulators agree that though there is profit to be had, microfinance services are aimed at ultimately improving the status and livelihood of the poor population. As the sector develops, regulators must be sure to address the issues we have highlighted: implementation of priority sector lending requirements, diversification of fundi ng, and acceptance of public deposits. As we move forward, regulators will ensure that microfinance institutionsÃÆ'Ã ¢Ã ¢Ã¢â¬Å¡Ã ¬Ãâ¦Ã ¸ operations and objectives are ultimately to serve and benefit the customer.
Wednesday, May 6, 2020
Running head: Situational Influences on Purchasing Behavior Situational Influences on Purchasing Behavior Abstract There was an investigation in an attempt to understand what situational influences affect purchasing behaviors of consumers. Fifty subjects were asked to complete a survey in determining what attributes affect the decision to purchase a product. The effect of purchase was based on three different times of day: morning, afternoon, and evening. The effect of purchase was also based on whether subjects preferred caffeinated or non-caffeinated soda depending on the time of day. The subjects were asked to rate their preferences on a 5 point rating scale, one beingÃ¢â¬ ¦show more contentÃ¢â¬ ¦We will also determine taste preference for that particular soda during a particular time of day. To summarize the main objectives of the present study, we will investigate an answer to the question of what impact situational influences on decision making have towards the purchase of a product. We will assess three different time periods; morning, afternoon, and evening based on the decision to drink a caffeinated or a non-caffeinated soda. In order to achieve results, we decided to develop a survey in which subjects were asked to complete a questionnaire based on their preference for the type of soda one drinks during a particular time of day to see if there are variations in taste attributes depending on the time of day the purchasing is taking place. We expect individuals to purchase more caffeinated products during the morning and the afternoon. , Whereas we expect them to purchase more non-caffeinated products. Method Participants Forty-nine subjects volunteered to participate in a survey designed to measure peoples preferences for caffeine, diet, cola, non-cola flavored, or clear cola in three different usage situations; the morning, the afternoon, and at night. The subjects were asked to participate by the three members of the research group. The subjects were not discriminated based onShow MoreRelatedInternal Factors That Influence Consumer Behavior1339 Words Ã |Ã 6 Pagessuccessfully market their product or service, the behavior of consumers must be considered. Understanding how a person thinks, reacts, and feels may play a huge role in how a marketing manager sets up their campaign; thus determining whether or not their marketing plan was a success or failure. The factors that affect consumer behavior can be broken down into three segments: internal, external, and situational. Internal factors that influence consumer behavior involves the perception of a product by aRead MoreConsumer s Influence On Consumer Behavior1272 Words Ã |Ã 6 Pagesto purchasing. Advancements in technology have not only allowed consumers the capability to research, price shop and purchase products, but have also given businesses the ability to reach a targeted market based on data collection and past purchase history. Given that consumers have the purchase power in todayÃ¢â¬â¢s society, many businesses have implemented situational factors to influence a consumers buying behavior. 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This is because the choice of a marketing strategy may determine whether business organizations achieve their targeted sales or not. Ideally, the appropriate marketing strategies to use should be determined by the consumer purchasing behavior in respective markets. Therefore, for youth oriented consumer economies, marketers should adopt marketing strategies that target the youth population to effectively market their go ods and services. Over the last few decades consumption in ChinaRead MoreFactors That Influence Shopping Mall Behaviors1037 Words Ã |Ã 5 Pagesimpact on shopping behaviors. The purpose of this desk research is to investigate what are the factors affect shopping time and analysis how they influence. This research focused on three main factors, gender, age and income, that has obvious influence on how much time the customers spend in shopping mall. Background Many theories have been proposed to explain the factors that influence shopping mall behaviors. Although it covers a wide variety of theories, such as situational, personal, socialRead MoreMotivating1047 Words Ã |Ã 5 Pagestheir leaders behaviors and how they are treated on a daily basis. As a company decides to move employees have an enormous amount of things to consider. A few of my concerns with employees moving are; cost of living at the new location, school and daycare for children, jobs available for their spouse, and public transportation. Moving to a new location incurs costs that may be more significant that the compensation package allows. Selling a home at the current location and purchasing a new one isRead MoreThe Attitude Of Young Adult Vietnamese Consumers1633 Words Ã |Ã 7 Pagessection aims to discuss the research results in relations to existing conclusions upon consumer attitudes and product theories and whether the research supports or disagrees it. Despite the various debates, attitude still contributes to consumer behavior to an extent. 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Fences Lives are lead with anxiety over certain issues and with apprehension towards certain events. This play, Fences written by the playwright August Wilson deals with the progression of a family through the struggles of oppression and the inability to obtain the American Dream. The characters in the play develop throughout the story and can be viewed or interpreted in many different ways, but one man remains constant during the play and that is Troy. Due to certain events that transpired as he was growing up, Troy is shaped into a very stubborn yet proud man. To be a man who was black and proud ran the risk of getting destroyed, both physically and mentally. The world of the 1950s and 60s was rapidly changing andÃ¢â¬ ¦show more contentÃ¢â¬ ¦The aspect of social change had opportunities to erupt during the 1950s; people were so set on their views, and much like Troy very few were willing to believe that there was change. Howard Shapiro analyzed this issue Ã¢â¬Å"ItÃ¢â¬â¢s set in the late Ã¢â¬Ë50s in an American rapidly moving for an upheaval that will bring massive social change Ã¢â¬â change Troy Maxson either fails to see or cannot understandÃ¢â¬ (Shapiro) TroyÃ¢â¬â¢s reluctance to accept social change puts the future of his family at risk and stops Cory from progressing through life and out of the ghetto. Troy is constantly exposed to racism and attempts to overcome it in everyday life. There are many instances throughout the book of black people, often working very hard to try and get an opportunity to make something of their lives. This opportunity that is searched for is constantly dismissed because of the underlining theme of racism. Troy isnÃ¢â¬â¢t one to stand up for himself, but does when he speaks to his boss about inequality in the work area Ã¢â¬Å"I went to Mr. Rad and asked him Ã¢â¬Ëwhy? Why you got white menÃ¢â¬â¢s driving and the colored man lifting?Ã¢â¬â¢Ã¢â¬ (Wilson 19) TroyÃ¢â¬â¢s frustration in dealing with racism and i nequality everyday reflects his frustrations from being denied a career in baseball. Despite TroyÃ¢â¬â¢s efforts to work hard, he along with many others is not given a chance to change the lives of their families. Troy says that he works as hard as possible and receives nothing for itShow MoreRelatedFences Research1694 Words Ã |Ã 7 PagesThe Impact of Physical and Psychological Boundaries in August WilsonÃ¢â¬â¢s Fences The early 1950Ã¢â¬â¢s was a time of enormous importance because of the Civil Rights Movement which emphasized equal rights for blacks and whites. According to the book Approaching Literature, this time period became very familiar to August Wilson, the author of the play Fences. Wilson, an African American man, was raised by his mother and his ex-convict father. For a short period of time, before moving back to hisRead More Working Together in Robert Frosts Mending Wall Essay869 Words Ã |Ã 4 Pagesis cool and crisp. Roosters can be heard welcoming the sun to a new day and a woman is seen, wearing a clean colorful wrap about her body and head, her shadow casting a lone silhouette on the stone wall. The woman leans over to slide a piece of paper into one of the cracks, hoping her prayer will be heard in this city of Jerusalem. Millions are inserting their prayers into the walls of Japanese temples, while an inmate in one of a hundred prisons across the United States loo ks past his wall towardRead MoreEthics Theory1635 Words Ã |Ã 7 PagesName SOC120: Introduction to Ethics Social Responsibility Instructor: November 20, 2012 The life of prisoners some may never know. There are those who care not to know what goes on behind that wired fence. We find that some people that are convicted of crimes that they did not commit. Some people would rather turn their heads to what actually happens in a prison institution, because they feel it is no concern of theirs. Innocent women and men face aRead MoreIllegal Immigrants And The United States Illegal Immigration966 Words Ã |Ã 4 Pagesproblem, politicians including the president have proposed various solutions, but are not supported by the general public. In this research paper I will be discussing the various reasons many illegal immigrants are motivated to cross to the U.S illegally. The majority of undocumented immigrants work in low-skill jobs, (Constable, 2015). According to The Pew Research Center (2014) the U.S had approximately 5.2 percent illegal immigrants employed in the U.S labor force. This means that illegal aliensRead MoreMy Day Of High School886 Words Ã |Ã 4 Pagesable to express myself on paper. Thirteen years of English class (twelve excluding kindergarten) and in one year I finally learned comma placement, how to competently write a paper, and how to use databases which are a college staple. This portfolio is full of papers I have written using the knowledge attained throughout the course. All of the papers in this portfolio are from ENG 112 as it is the second semester. Although I thoroughly enjoyed writing some of the papers in first semester, I believeRead MoreThe University Industry Demonstration Partnership1169 Words Ã |Ã 5 Pageshigher learning, those working at research universities have the distinct privilege of witnessing the unfol ding of new discoveries through basic and fundamental research. As researchers seek funding to support graduate students, build and utilize laboratories, and conduct cutting-edge research, the federal government strives to stay ahead in science, technology, and medicine. Consequently, university researchers often look to receive federal funding for their research ideas. Driven by the creationRead MoreThe Threat Of Nuclear Terrorism1483 Words Ã |Ã 6 Pagesbuilding a nuclear device using stolen or illegally purchased nuclear material. This paper explores the dangers and threats of Nuclear Terrorism. It also goes in depth with how the governmentÃ¢â¬â¢s actions have prevented groups, countries and homegrown terrorist associations from starting a nuclear attack. The research that has been done on this paper comes from information from both online and offline sources. This paper contains information from both the NSA archive and from the Valencia College DatabaseRead MoreEssay on Hanging 10 for Power Generation1034 Words Ã |Ã 5 PagesGeneration There are many different ways to generate electricity. Wind, rivers, fire, and ocean are just a few technologies that are in current use. In this paper it will narrow the focus to the different types of ocean wave power generation. Wave generated electricity is a fairly new concept. Heavy research started in the early sixties. People have been trying to build effective wave machines for about two hundred years. Designing wave machines can be difficult do toRead More August Wilsons Fences - Building Fences Essay3028 Words Ã |Ã 13 PagesWilsons Fences - Building Fences The first time I read August Wilsons Fences for english class, I was angry. I was angry at Troy Maxson, angry at him for having an affair, angry at him for denying his son, Cory, the opportunity for a football scholarship.I kept waiting for Troy to redeem himself in the end of the play, to change his mind about Cory, or to make up with Ruth somehow. I wanted to know why, and I didnt, couldnt understand. I had no intention of writing my research paper on thisRead MoreThe Architecture Of China And Buddhism Essay1252 Words Ã |Ã 6 Pagesand present, it contains special geometric shapes, specified colors and outward gable roofs. These specifications have made the architecture of China particular. Buddha is one of the other important and effective parameters in this country. In this paper I want to introduce common features of the architecture of China and Buddhism, in fact the target is to find out effective factors on religious structures in this country. 2. Introduction 2.1. Buddhism Buddhism is a religion based on the teachings