Beowulf An Anglo Saxon Hero - 1825 Words

Beowulf: An Anglo-Saxon Hero The Anglo-Saxons’ cultures and traditions are rooted in their beliefs of the perfect hero. Their ideal hero has many key characteristics influenced by their culture including courage, strength, bravery, thick skin, loyalty, humbleness, and the ability to create strong trustworthy friendships. Beowulf is an epic poem that exhibits the ideal Anglo-Saxon hero. The Anglo-Saxon traditions illustrated in Beowulf accurately represent the Anglo-Saxon traditions of the time period. This is accomplished through the distinct correlation of heroic characteristics between Beowulf and the culture’s traditional depiction of an Anglo-Saxon hero. Anglo-Saxons believed that, â€Å"to be a hero was to be a warrior† (Garcia). They†¦show more content†¦Humbleness was also key for an Anglo-Saxon hero as it proved respectability and honor towards the hero. Anglo-Saxons wanted their hero to prove their strength and courage, however, they did not wan t the hero to become a dictator of any kind. Strong friendships were known as the most trustable alliances an Anglo-Saxon hero could form for battles (Trekker2392). It was key for an Anglo-Saxon hero to have the ability to create strong friendships around him. Beowulf perfectly identifies to all five of these main characteristics throughout the epic poem. Courage, bravery, and strength are three heroic Anglo-Saxon characteristics that tie together perfectly. Without courage, you will not have strength and bravery. Without strength and bravery, you will not have the courage to face your challenges. Anglo-Saxons believed three of these characteristics were perfectly interwoven in the ideal Anglo-Saxon hero (Garcia). Beowulf identifies to three of these Anglo-Saxon characteristics flawlessly as he fights the monstrous Grendel. Courage means fighting even if it means death; it means challenging your fate and being brave no matter the circumstance (Cascio). Beowulf shows special strength and bravery when he has the courage to renounce his use of weapons and protection when battling Grendel. â€Å"No weapons, therefore, for either this night: unarmed he [Grendel] shall face me if faceShow MoreRelatedBeowulf is an Anglo-Saxon Hero Essay691 Words   |  3 PagesAccording to the definition, a hero is one who embodies the values of their society. In the epic Anglo-Saxon poem Beowulf, written by an anonymous author, the character Beowulf is used to convey the value that Anglo-Saxons placed on courage, strength, and loyalty. Courage is certainly a trait which every hero must possess, particularly because no one wants a hero who is a coward. Thankfully, Beowulf is no coward. When Beowulf hears of Grendel’s exploits in Denmark, he travels to the â€Å"distant† landRead MoreBeowulf the Anglo Saxon Hero Essay498 Words   |  2 PagesThe epic poem Beowulf describes the most heroic man of the Anglo-Saxon times. The hero, Beowulf, is a seemingly invincible person with all the extraordinary traits required of an Anglo Saxon hero. He is able to use his super-human physical strength and courage to put his people before himself. He encounters many monsters and horrible beasts, but he never fears the threat of death. His leadership skills are outstanding and he is even able to boast about all his achievements. Beowulf is the ultimateRead MoreBeowulf : An Anglo Saxon Epic Hero957 Words   |  4 Pages Beowulf possessed the character of an Anglo-Saxon epic hero for many reasons. Not only was he the central character in the epic Beowulf, but he was a larger-than-life figure. He proved that by the way he fought and put his courage, skill, and virtue against his enemies. Beowulf was brave beyond compare, had superhuman strength, and a desire to find success in what he did. He was a young warrior with a good reputation who battled against an evil demon, Grendel, and later his mother, for the DanesRead MoreEssay Beowulf: The Ideal Anglo-Saxon Hero858 Words   |  4 PagesOriginating in the Anglo-Saxon period, the epic poem Beowulf portrays a legendary hero. Beowulf established the earlier form of heroism, and was then later introduced in to the English culture. Praised and admired by many people, Beowulf possesses several distinct traits that allow him to be defined perfectly as an ideal Anglo-Saxon hero; his eagerness to seek glory and fame, rather than richness and treasures, his lo yalty and graceful attitude not only to his rulers but also to his followers, andRead MoreEssay on Beowulf - The Achetype of an Anglo-Saxon Hero575 Words   |  3 Pagespresent days society a hero can be seen as someone who risk their own safety or well-being to help someone else either individually or to help the community. Todays requirement to be a hero can be anyone as long as they make sacrifices for others, in which they can be seen as selfless and caring. Many traits that are portrayed of heroes currently were once used to determine a hero in Anglo-Saxon times. In the epic poem Beowulf, by an unknown author, the protagonist Beowulf is visioned to be the Read MoreComparing Beowulf, An Anglo Saxon Epic Hero1292 Words   |  6 PagesIn life the courageous hero has forever stood as a standard of whom we should be and who we wish to be. In the story of Beowulf, an Anglo-Saxon epic the hero is one that is easy to understand, Beowulf fights monsters he is loyal to his Lord and sh ows very strong and powerful leadership skills. Beowulf is the perfect Anglo-Saxon epic hero who displays courage, bravery, and strength during his battles against evil. Beowulf can be viewed as the standard courageous hero. In this story courage is viewedRead MoreBeowulf, An Adventurous And Bold Account Of The Trials And Tribulations Of An Anglo Saxon Hero1210 Words   |  5 PagesThe epic-poem, Beowulf is an adventurous and bold account of the trials and tribulations of an Anglo-Saxon hero. The main character in the poem, Beowulf, encounters three monsters throughout the poem that are enraged for three different reasons, which cause them to wreak havoc on society. First, he faces Grendel who is an angered social outcast of the Heorot community. Next, he defeats Grendel’s mother who is out to avenge her son’s death. And lastly, he faces his death when he fights the DragonRead MoreComparing Beowulf, The Wanderer, And The 13th Warrior1731 Words   |  7 Pagesalways r eappears is What is an epic hero? Or better yet an epic hero in Anglo Saxon culture. I believe there is more to being a hero than just being strong or intelligent. An epic hero in my eyes is oneself who comes to portray the beliefs of the society in which the tale/story is depicted. A few great examples of the Anglo Saxon epic hero are the literary characters in Beowulf, The Wanderer, and The 13th Warrior. These are all outstanding examples of Anglo-Saxon epic heroes because they all cameRead MoreModern Hero vs. Anglo Saxon Hero Essay814 Words   |  4 Pagesday hero has similarities and differences than the Anglo-Saxon hero. The two heroes each have different values they believe in. Also, they are motivated to fight for different reasons. An Anglo-Saxon hero also fights differently than a modern day hero. An example of this comparison is Bono from the band U2 and Beowulf. Both modern day heroes, like Bono and Anglo-Saxon heroes, like Beowulf, try to improve their societies, but d o it in different ways and for different reasons. Anglo-Saxon heroesRead MoreAnglo Saxon Culture as Reflected in Beowulf Essay943 Words   |  4 PagesAnglo Saxon Culture as reflected in Beowulf Every culture has its own set of beliefs values and customs. Cultural beliefs, values, and assumptions are directly and indirectly acquired throughout a lifetime. A culture is the sum of a group’s way of life and this is no different with the ancient Anglo Saxon culture. Cultures usually have distinct figures that reflect their culture as a whole. The importance of religion, values, and heroes are reflected a great deal in the epic poem of Beowulf

British American Tobacco Investment Strategies Past 5 Years

Investment strategy The information provided below have been mainly extracted from the Annual Reports of the five-year period subject to analysis. INTRODUCTION BOOK In the last five years, the tobacco industry has remained fairly stable, with little Mamp;A activity undertaken by the leading industry players. British American Tobacco aims to increase its market share and to become the biggest publicly-listed tobacco company. In pursuing this intention (objective, goal), the company has completed a number of strategic investments and partnerships focused on its future growth. The analysis is conducted on a year-by-year basis, highlighting the most important Mamp;A activities undertaken by the company. 2011 has been an†¦show more content†¦The brand also involved in the agreement, Shuang Xi, was successfully launched in new markets, such as Russia, Pakistan and Poland. Moreover, in the same year the company signed an agreement for another joint venture with a Myanmar company, IMU Enterprise, part of the SWH group. The agreement provides the manufacture, distribution and marketing of the UK-based company’s brands. Thanks to these partnerships the total revenues for the Asia-Pacific region grew by 1.2% (at constant rate of exchange), especially driven by an increase of volume mixed to an increase of price in Pakistan, Bangladesh, Taiwan, Japan and Malaysia. In 2014 the company stopped its share repurchase program to take part in the big deal involving the RAI’s acquisition of Lorillard. The acquired firm was the third largest American tobacco company and the oldest continuously operating tobacco company in the United States. BAT invested  £3.9bn ($4.7bn) in this deal to maintain its stake of 42% in Reynolds, which thanks to this acquisition became the second largest tobacco company in the US behind Philip Morris International. This investment led to a 2% increase (at constant rates of exchange) in the total contribution of Reynolds for the year 2014 and an increase of the share of post-tax results of associates and joint ventures of almost 25% (at constant rate of exchange) in 2015. This investment, together with the acquisition of the remainingShow MoreRelatedBritish American Tobacco (Malaysia) Sdn Bhd - Strategies Planning Management6397 Words   |  26 Pages3 3.4 Leadership Style 4 3. Analysis 5-10 4.5 External Environment 4.6.1 General Environment – PESTEL Analysis 5 4.6.2 Industry Environment – Porter’s 5 Forces Analysis 6 4.6 Internal Environment 4.7.3 Vision/ Mission 7 4.7.4 Long Term Objectives/ Grand Strategies 7-8 4.7.5 Business Objectives/ Strategies – Value Chain Analysis 9 4.7.6 Financial Analysis 10 Read MoreAn Overview of Multinational Companies4189 Words   |  17 Pagesis a corporation enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation. They play an important role in globalization Nearly all major  multinationals are either American, Japanese or  Western European, such as Nike, Coca-Cola, Wal-Mart, AOL, Toshiba, Honda and BMW. Advocates of multinationals say they create jobs and wealth and improve technology in countries that are in need of such development. On the other handRead MoreMarketing of Tobacco Products Essay examples2282 Words   |  10 PagesMarketing of Tobacco Products Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and values with others.(Kotler, Armstrong, Saunders, Wong page 5) One of the products that are exchanged through marketing is cigarettes. Tobacco is considered an inherently unethical product because is addictive, dangerous and causes environmental damage. Tobacco is also considered a pleasing product becauseRead MoreBritish American Tobacco6348 Words   |  26 PagesOVERVIEW OF BRITISH AMERICAN TOBACCO GROUP BAT BANGLADESH BAT is the world’s second largest quoted tobacco group by global market share, with brands sold in more than 180 markets. With over 300 brands in the portfolio, BAT makes the cigarette chosen by one in eight of the world’s one billion adult smokers. It holds robust market positions in each of the regions they operate and have leadership in more than 50 markets. BAT has sustained a significant global presence for over 100 years. The businessRead MoreMacro Environment of Sony7795 Words   |  32 Pagesand indeed become the organization s most valuable assets. In the field of marketing, brands originated in the nineteenth century with the advent of packaged goods. The first registered brand was the red triangle registered by Bass beer, as the British were the first to introduce a law for trade mark registration. Industrialization moved the production of household items, such as soap, from local communities to centralized factories. When shipping their items, the factories would brand their logotypeRead MoreImperial Tobacco Financial Analysis3256 Words   |  14 PagesImperial Tobacco Index S.No. Particulars Page No. 1 IMPERIAL TOBACCO Company Profile 2 2 Key management personal and shareholding distributions 3 Share Holding Distributions 3 FINANCIAL PERFORMANCE ANALYSIS 5 Comparative Profit and Loss Growth Analysis Comparative Balance Sheet Analysis Financial Ratios Analysis 4 SHARE MARKET INFORMATION 8 Dividends Imperial Tobacco Direct Competitor Comparison Valuation RatioRead MoreThe Impacts of Mncs in the Economy of Bangladesh14643 Words   |  59 Pagesgiven an unwritten license to expand their business over the world. In this sequel action American Life Insurance Company ltd. Launched in Bangladesh as a first ever MNC. Since then to today around 100 MNC have been competing in Bangladesh. If we consider the prior period of liberation war, we get launching of a lot of companies in Bangladesh. Among them Standard Chartered bank (BD) ltd, British American Tobacco (BAT) Bangladesh ltd. is most renown. BAT came in East Pakistan (now Bangladesh) in1945Read MoreBrand Strategy and Imc11643 Words   |  47 PagesBrand strategy and integrated marketing communication (IMC): a case study of player s cigarette... Integrated marketing communication (IMC) is defined as a cross-functional process for creating and nourishing profitable relationships with customers and other stakeholders by strategically controlling or influencing all messages sent to these groups and encouraging data-driven, purposeful dialogue with them (Duncan 2002, p. 8). To better understand the real-world application of IMC, a call hasRead MoreCorporate Social Response6999 Words   |  28 Pagesto Canadian businesses because it makes companies more innovative, productive, and competitive. CSR helps make Canadian business more competitive by supporting operational efficiency gains; improved risk management; favourable relations with the investment community and improved access to capital; enhanced employee relations; stronger relationships with communities and an enhanced licence to operate; and improved reputation and branding. Corporate social responsibility is a concept with a growingRead MorePlanning, Organising, Leading, Controlling in an Organisation5773 Words   |  24 Pages1.0 Introduction This paper elaborates the different management aspects practiced at Ceylon Tobacco Company (CTC) and DHL Keells. The facets discussed in detail will be Planning, Organising, Leading and Controlling. The key strengths and weaknesses of both organisations are identified and discussed on how it touches the internal and the external factors affecting their core business. The organisation’s Vision, Mission, Critical Successful Factors are deliberated in order to come up with specific

Of wisdom for a mans self Essay Example For Students

Of wisdom for a mans self Essay An ant is a wise creature for itself, but it is a shrewd thing, in an orchard or garden. And certainly, men that are great lovers of themselves, waste the public. Divide with reason; between selflove and society; and be so true to thyself, as thou be not false to others; specially to thy king and country. It is a poor centre of a mans actions, himself. It is right earth. For that only stands fast upon his own centre; whereas all things, that have affinity with the heavens, move upon the centre of another, which they benefit. The referring of all to a mans self, is more tolerable in a sovereign prince; because themselves are not only themselves, but their good and evil is at the peril of the public fortune. But it is a desperate evil, in a servant to a prince, or a citizen in a republic. For whatsoever affairs pass such a mans hands, he crooketh them to his own ends; which must needs be often eccentric to the ends of his master, or state. Therefore, let princes, or states, choose such servants, as have not this mark; except they mean their service should be made but the accessory. That which maketh the effect more pernicious, is that all proportion is lost. It were disproportion enough, for the servants good to be preferred before the masters; but yet it is a greater extreme, when a little good of the servant, shall carry things against a great good of the masters. And yet that is the case of bad officers, treasurers, ambassadors, generals, and other false and corrupt servants; which set a bias upon their bowl, of their own petty ends and envies, to the overthrow of their masters great and important affairs. And for the most part, the good such servants receive, is after the model of their own fortune; but the hurt they sell for that good, is after the model of their masters fortune. And certainly it is the nature of extreme self-lovers, as they will set an house on fire, and it were but to roast their eggs; and yet these men many times hold credit with their masters, because their study is but to please them, and profit themselves; and for either respect, they will abandon the good of their affairs. Wisdom for a mans self is, in many branches thereof, a depraved thing. It is the wisdom of rats, that will be sure to leave a house, somewhat before it fall. It is the wisdom of the fox, that thrusts out the badger, who digged and made room for him. It is the wisdom of crocodiles, that shed tears when they would devour. But that which is specially to be noted is, that those which as Cicero says of Pompey are sui amantes sine rivali, are many times unfortunate. And whereas they have, all their times, sacrificed to themselves, they become in the end, themselves sacrifices to the inconstancy of fortune, whose wings they thought, by their self-wisdom, to have pinioned.

Dover Beach Essay Research Paper free essay sample

Dover Beach Essay, Research Paper # 8220 ; Sea is life # 8220 ; Dover Beach is a really mood-evoking verse form. We are first met with an esteem for the sea and different emotions that draws to the perceiver. However, as the verse form progresses we are bit by bit introduced to a big metaphor for love and like the sea are able to arouse many tempers, and different emotions, whether comfortable or decayed. The poet describes the emotions with utmost passion and possibly with little crazes. We are given as sense of loss by this convulsion, which becomes clearer in the last stanza. The rubric of this verse form, # 8220 ; Dover Beach # 8221 ; , truly sets the scene to the reader about immediately. The beach, with its white drops, aid give the readers a sense of laterality and impressiveness. The poet may hold done this as to put the temper for the gap stanza. For others it may arouse a idea or memory of the past such as the childhood vacations with your parents. We will write a custom essay sample on Dover Beach Essay Research Paper or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The lines in the verse form could be arousing these ideas so that you can sympathize subsequently to what he is sing in the verse form. The rubric itself nevertheless, does non give you any emotional penetration into the verse form. I feel the poet did this as to non alarm the reader to what is traveling go on in farther in the verse form. The verse forms opening stanza is to get down with really soft and peaceable, # 8220 ; The sea is unagitated tonight # 8221 ; ( Line 1 ) . The words the poet utilizations are delighting such as # 8220 ; Gleams, Sweet, gleaming # 8221 ; ( Line 4, 6,5 ) . The temper for the verse form is being set. The reader is filled with visions of peace and a sense of being content # 8220 ; sweet is the dark air! # 8221 ; ( Line 6 ) . However, the temper of the verse form dramatically alterations. The poet begins to utilize words, which changes the temper and are immensely different from the old lines, # 8220 ; howl, decelerate, unhappiness # 8221 ; ( Line 9, 13, 14 ) . This sudden emotional alteration to me is a symbol of his love or life. Once the poet # 8217 ; s life was calm like the seas in the gap line. The poet # 8217 ; s life has no changed into convulsion of emotions, which are charged like the sea # 8220 ; the moving ridges draw back, and crack, At their return/ # 8221 ; ( Lin es 10-11 ) . The first stanza is explicating the sudden alteration in temper in the verse form that is really similar to the altering temper of the sea. In the 2nd stanza we are really able to larn more of the poets analogy. The poet believes that the noise of the sea can convey in the â€Å"flow of human misery† ( Line 18 ) . This is what he claims happened to Sophocles. This analogy is possibly what besides happened to the poet’s life. The unagitated sea turned into a continual warning swash in his psyche which brought with it wretchedness. However the last line of the stanza tells us that this noise does non convey with it merely human wretchedness but besides a idea, that the poet does non lucubrate this theory so we are left to presume this alterations from individual to individual. â€Å"in the sound a thought† ( Line 19 ) . The sea once more in the 3rd stanza represents his loss of religion. This loss of religion is intricately described as disappearance in the darks wind # 8221 ; to the breath of the night-wind # 8221 ; ( Lines 26-27 ) . Here the poet builds up a clear image of the air current being personified, # 8220 ; to the breath # 8221 ; ( Line 26 ) and taking this religion down to the # 8220 ; huge borders # 8221 ; ( Line 27 ) , and with it besides the # 8220 ; bare herpes zosters of the universe # 8221 ; ( Line 28 ) . This thought of bare herpes zosters is possibly how the poet feels himself to be. He isolates himself from anyone else. He is left au naturel naked to hold all of his ideals taken off from him by the simple component the air current. By utilizing the different tempers of the sea, composure and powerful, the poet is able to do a connexion to life. The manner the sea continuously knocks, hurtling stones up against the sand, gives us a sense of inexorability of some emotional strain on his life, # 8220 ; Begin, and cease, and so once more begin # 8221 ; ( Line 12 ) . The concluding stanza is an incorporation of the whole verse form, every bit good as corroborating to the reader what it is the poet is seeking to explicate. The concluding stanza, begins like that of the gap stanza, utilizing a really appealing, soft gap, every bit good as words to back up this, # 8220 ; love, true, dreams, beautiful and new # 8221 ; ( Lines 29, 31, 32 ) . However, once more like the stanzas predating it, the temper alterations once more, which tries to state us that no affair what happens, whether we are true, or in love, we will neer understand this beauty of the sea. The poet helps to give an apprehension to the reader that the sea is one component that one can neer understand and so is life itself. This verse form was antic in showing what the poet is showing from his bosom.

All About Geography Questions and Answers

All About Geography Questions and Answers While the word geography is derived from Greek and literally means to write about the earth, the subject of geography is much more than describing foreign places or memorizing the names of capitals and countries. Geography is an all-encompassing discipline that seeks to understand the world - Â  its human and physical features - through an understanding of place and location. Geographers study where things are and how they got there. My favorite definitions for geography are the bridge between the human and physical sciences and the mother of all sciences. Geography looks at the spatial connection between people, places, and the earth. How Is Geography Different from Geology? Many people have an idea of what a geologist does but dont have any idea of what a geographer does. While geography is commonly divided into human geography and physical geography, the difference between physical geography and geology is often confusing. Geographers tend to study the surface of the earth, its landscapes, its features, and why they are where they are. Geologists look deeper into the earth than do geographers and study its rocks, the internal processes of the earth (such as plate tectonics and volcanoes), and study periods of earth history many millions and even billions of years ago. How Does One Become a Geographer? An undergraduate (college or university) education in geography is an important beginning to becoming a geographer. With a bachelors degree in geography, a geography student can begin working in a variety of fields. While many students begin their career after achieving an undergraduate education, others continue on. A masters degree in geography is very helpful for the student who desires to teach at the high school or community college level, to be a cartographer or GIS specialist, of work in business or government. A doctorate in geography (Ph.D.) is necessary if one wishes to become a full professor at a university. Although, many Ph.D.s in geography continue on to form consulting firms, become administrators in government agencies, or attain high-level research positions in corporations or think-tanks. The best resource for learning about colleges and universities that offer degrees in geography is the annual publication of the Association of American Geographers, the Guide to Programs in Geography in the United States and Canada. What Does a Geographer Do? Unfortunately, the job title of geographer is not often found in companies or government agencies (with the most notable exception of the U.S. Census Bureau). However, more and more companies are recognizing the skill that a geographically-trained individual brings to the table. Youll find many geographers working as planners, cartographers (map makers), GIS specialists, analysis, scientists, researchers, and many other positions. Youll also find many geographers working as instructors, professors, and researchers at schools, colleges, and universities. Why Is Geography Important? Being able to view the world geographically is a fundamental skill for everyone. Understanding the connection between the environment and people, geography ties together diverse sciences as geology, biology, and climatology with economics, history, and politics based on location. Geographers understand conflict around the world because so many factors are involved. Who Are the Fathers of Geography? The Greek scholar Eratosthenes, who measured the circumference of the earth and was the first to use the word geography, is commonly called the father of geography. Alexander von Humboldt is commonly called the father of modern geography and William Morris Davis is commonly called the father of American geography. How Can I Learn More About Geography? Taking geography courses, reading geography books, and, of course, exploring this site are great ways to learn. You can increase your geographic literacy of places around the world by getting a good atlas, such as Goodes World Atlas and use it to look up unfamiliar places anytime you encounter them while reading or watching the news. Before long, youll have a great knowledge of where places are. Reading travelogues and historical books can also help improve your geographic literacy and understanding of the world - Â  theyre some of my favorite things to read. What Is the Future of Geography? Things are looking up for geography! More and more schools across the United States are offering or requiring geography be taught at all levels, especially high school. The introduction of the Advanced Placement Human Geography course in high schools in the 2000-2001 school year increased the number of college-ready geography majors, thus increasing the numbers of geography students in undergraduate programs. New geography teachers and professors are needed in all areas of the educational system as more students begin learning geography. GIS (Geographic Information Systems) has become popular in many different disciplines and not just geography. The career opportunities for geographers with technical skills, especially in the area of GIS, is excellent and should continue to grow.

The Role Of Effective Communication Assingment Essays

The Role Of Effective Communication Assingment Essays The Role Of Effective Communication Assingment Essay The Role Of Effective Communication Assingment Essay The Role of Effective Communication Effective communication is effectiveness or success of communication and interaction in a Some of the factors promote interaction and effective communication, while others can limit interaction and be a barrier to effective communication. There are two example of effective communication these are Argyle Communication Cycle and Dustmans Theory of Interaction. Argyles theory of the communication cycle is based on interpersonal (one-to-one communication) interaction. The cycle involves two people how they understand each other when interacting and how they decide to reply to each other. Lath and social care setting which can be influenced by a number of factors. The cycle consists of: 1 . An Idea Occurs: You have an idea that you want to communicate 2. Message Coded: You think through how you are going to say what you are thinking. You put your thoughts into language or into some other code such as sign language. 3. Message Sen t: You have communicated your idea either through speech, sign, online or off-line written communication. 4. Message Received: The other person has to understand your message. This is not always easy, as the other person will make assumptions about your words and body language. Message Decoded: The other person has to understand and interpret your message. This is not always easy. As the other person will make assumptions about your words e. G. Maybe they will hear an insult which isnt actually an insult. 6. Message understood: It all goes well when your ideas will be understood but this not always happen first time! To put this theory into practice an example would be in a GAP surgery. A doctors communication has important information for a service user about their medication they will need to take after they have left the setting. First of all the doctor will decide the type of dedication the service user will need to make their health better, this would then lead to the doctor thinking as to how he could communicate what hes going to say in a respectful and understanding manner to make sure the service user has an understanding of the medication they will be given, in an non patronizing tone. To ensure that this does not happen the doctor would speak quite informally to make sure that he/she doesnt come across as posh and patronizing, this will then calm the service user as it would make them feel comfortable. After the doctor has decided what he is going to say e would then communicate his ideas to the seen,ice user. The doctor has to do this clearly as the patient might not be in a State where they might not fully understand what the doctor is trying to say. The doctor must make sure to keep in mind that he/she cant be patronizing to the service user as they might get insulted. After this the service user must have an understanding of what the doctor has just said. The message would have been received by the service user and then they would have to try interpreting what the doctor has said. This would leave the service user decoding the message however this eight not go well as the service user could assume that the doctor was insulting their intelligence. After the message has been decoding and understood and if all goes well the service user would have an understanding what the doctor said. This would leave the service user talking the medication that they need which will improve their overall health and will reduce the risk of them having to come back into the GAP about their prescribed medication. However, if the service user has not understood the doctor has said this could potentially mean the service user going back to the GAP. Dustmans Theory of Interaction is another theory of effective immunization. This theory mostly applies to a group -either working as a group or not. The theory is based on people meeting for the first time, meaning that no one knows each other, this is because if a group knows each other some steps can be easier than others. There are four stages in Dustmans theory. These are: 1. Forming This stage refers to people meeting for the first time and sharing information about the task. 2. Storming -? This stage involves tension, struggle and sometimes arguments about the way the group might function. 3. Morning- At this stage the group begins to form a Truckee and people begin to understand their role within the group. And they start to respect their group values. 4. Performing This is where the group starts and finishes the task they have been given and they effectively and efficiently perform as a group. To put this theory into practice an example would be, in a GAP surgery, a case conference including the GAP, social worker, career and a nurse about an elderly person who has had a stroke and they are living alone and they need to decide whether the service user goes to a care home or has a permanent career. Firstly, the GAP, social worker, career and a nurse would meet for the first mime and introduce themselves to each other, and then the GAP will start explaining what happened to the service user and the GAP will talk about what they want to happen to the service user. That is when they will be forming. The group of health and social care professionals might have a bit of tension because the GAP wants the service user to have a service user and not want the service user to go to a care home but the social worker wants the service user to go to a care home. This is the storming stage because there is tension between what they want to happen to the service user. The group Start to put all their ideas into one and still try and figure out what to do with the service user, when they do this they all start to respect each other. This is the Norman stage, because they are respecting each other and they are starting to put structures on their ideas for the service user. When the professionals have concluded what they think will best for the service user. They have decided for the service user, depending how many strokes she has in a week, theyll put her in an elderly care home or have a pert-time career. This is the Performing stage because this is when the group has achieved an effective performance of their choices. Another example of putting the theory into practice is when a family (consisting of a mother, father, son (5 years old) and a 5 month year old baby) comes into a GAP to get their baby girl weighed by a community midwife. The family and the community midwife introduce themselves and the midwife tells them what shes going to do with their baby girl. This is the Forming stage because they have introduced and the midwife shared the task of what SSH?s going to do to the family. When the community midwife is weighing she might make a sarcastic joke saying Your babys a bit chunky but in a funny one, not being serious. The mum then might take is seriously and be a little mad with the midwife as she is feeding her baby correctly. This will be the Storming stage because there is a bit of tension in the room. The community midwife then communicates to the mother about what she can do to make the baby eat more or less depending on what the babys weight is, when the midwife is doing her paperwork. This is the Morning stage because they understand the midwife?s role. And the nurse starts to respect the family more. The nurse finishes the paperwork and tells the parents about the eight and how they can improve on the baby health etc. This is the Performing stage because the nurse is finishing her duties to the baby and the family. Task B Explain and Assess the role of effective communication using examples of how people communicate within a GAP surgery. Five forms of communication: One of the forms of communication is text messaging. Text messaging is when people communicate over their mobile phones and they type what they want to say to another person. An example in a GAP surgery is the receptionist could text message an elderly person to remind them about their appointment. This is a good thing because it is quick and simple for the GAP surgery to use. Secondly, it means the elderly person will get a reminder for their GAP surgery, so they wont forget. The bad thing about this is an elderly patient could have a mobile phone but they might not understand how to use the device especially if it is a touch screen phone. Secondly, the patient might not understand how to use the phone; she might not be able to reply back if she cant attend the appointment. This then goes against Argyles theory because the service user is unable to respond to the receptionist who sent he message. The second form of communication is oral communication. Oral communication is the process of verbally transferring information and ideas from one individual (or group) to another person. For example a service user talking to their GAP about an injury that has occurred. The good thing about oral communication it is simple and everyone is able to talk. Secondly, people are very talkative which means they are able to describe what has happened to them. The bad thing about oral communication is that someone might have a stutter which means they wont be confident to talk to the GAP bout their problems. The third form of communication is signs and symbols. Signs and symbols are gestures made with hands or arms, written symbols or diagram (such as fire exit signs) all communicate messages to people. An example in a GAP surgery would be a fire occurs in the back of the GAP surgery, and the fire exit symbol goes on. A good thing is people will know where the right door is to exit to the building because there will be a sign to direct the service users. A bad thing is that a permanently blind service user will not know where to go because they wont see the sign to leave the building. The fourth form of communication is touch. Touch is another way of communicating without words. An example of touch is if a GAP has just said to a patient they have a form of cancer and the GAP is trying to comfort the patient with touch. A good thing about touch is the GAP is sending a message of care. This will lead the service user to trust their GAP more as the GAP is being caring for the service user. A bad thing about touch is the service user might think the GOT is trying to dominate them. Secondly they might find the GAP is patronizing them. The fifth form of communication is written communication. Written immunization is the same as oral but it is written down on paper instead of being spoke words. An example of written communication is when a GAP us written important information that the patient cant do when taking their medication. The good thing about this is the service user will have the information in hand instead of having to remember it. Also written communication is easy and simple to use. Also, the service user is able to keep the information for a very long but if the GAP never wrote down the service user could have forgotten. The bad thing about written communication is the service user might be blind so they wont be able to dead this. Also, they might lose the paper which means they will not have the information they need. 3 Types of Communication: The first type of communication is speech. Task C Explain what factors might affect communication in the Surgery and explain, review and evaluate strategies that can be used to overcome barriers to communication.

Paramedic Science (Medical) Essay Example | Topics and Well Written Essays - 2000 words

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Hollywood Portrayal of Cancer Essay Example | Topics and Well Written Essays - 1500 words

Hollywood Portrayal of Cancer - Essay Example Sweet November and Autumn in New York are both love stories that are centered on the appreciation of the beauty of life. In exploring this theme, the movies placed the main characters in a situation where one of them is terminally ill. Sweet November is a love story that revolves around Nelson Moss (played by Keanu Reeves) and Sara Deever (Charlize Theron). Deever took it as a mission to help Moss overcome his obsession with work and success, and thereby allowing him to appreciate and enjoy life. This mission would be achieved in just one month. As the story unfolds, it is revealed that Deever is afflicted with non-Hodgkin's lymphoma, a type of cancer that is the main reason for Deever's decision to lead an unusual lifestyle of "curing" men of their misbehaviors towards women. The story ends tragically, with Deever ending her relationship with Moss and facing the consequences of her illness alone.. Autumn in New York is a love story between a womanizing older man and a young, vibrant woman. Early on the story, Charlotte Fielding (Winona Ryder) and Will Keane (Richard Gere) fell in love, and as Keane was ending the relationship in the same manner as he had ended his past relationships, Fielding agreed to the fact that they would have no future together because she was sick. The story ended in tragedy as Fielding dies of a rare disease after the last-resort surgical operation failed to save her life. There are many similarities in the two movies in the manner that cancer was portrayed. First, the illness was equated to the certainty of death. The drama in both films revolves around the fact that the women have little time left. Both protagonists also dealt with the disease in a similar manner - they gave up on medical treatments. In Autumn of New York, Charlotte Fielding even signed a directive that no surgery will be made on her. In one of their conversations, Fielding told Keane, "I don't want to give hope, when there is none" (Chen, 2000). The same attitude was somewhat projected by Sara Deever in Sweet November. She decided to take on a different course in life, away from the regular treatments usually provided by hospitals to cancer patients. Both films in a way concluded that there were no other options for the two cancer-afflicted characters, and that subjecting themselves to medical treatments and procedures would yield the same result, that is, eventual death. The character in Autumn in New York died at the end of the film, while in Sweet November, the character decided to come home and perhaps yield to medical cure for her illness, although the last scene seemed to indicate that she would be spending the rest of her life wilting away and succumbing to death. She left the viewers thinking that she would die, in the same way that her lover agreed to letting her go and face death. Both stories depict the dying characters, both of which were white women, still in flawless appearance. This would fall under what Comedienne Carol Burnett referred to as the Movie Star Disease (as cited in Lallanilla, 2005), where the ill character,

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Basel II Accord Effects on Qatar Banking

Basel II Accord Effects on Qatar Banking International banking is increasingly vital for every country in order to create an image for itself in the international finance market Chapter 1: Introduction International banking is increasingly vital for every country in order to create an image for itself in the international finance market. Alongside, the increase in globalisation and the upsurge in outsourcing by multinational companies in the west have created a lot of opportunities for growth in the Middle East and Far Eastern countries. This apparently requires a strong internationally stable financial organization to conduct transactions across the globe without any errors (i.e.) 100% accuracy.   This includes reliability and stability of the bank under extreme situations (like emergency for example), which is highly important to conduct international transactions. Also the potential to meet financial demands during crisis situations is a vital criterion that is considered while presenting themselves in the international market. In addition to the globalisation, outsourcing and export/import growth, there is also a tremendous growth in cross-border finance among the countries in the Middle East and Far East. Along with all these factors the developing nations in the Middle East face a mandatory requirement of a sable international banking system in order to attract foreign investment. The increase in cross border finance activity among the middle eastern countries is also a critical element to be considered for establishing a stable international bank within the nation in order to represent the country in the international finance market. The countries in the Middle East are actively participating in cross-border finance since the dawn of the 21st century. Being a producer of Oil which is a vital ingredient at all levels of life right from day-to-day driving up to power generation for the nation in order to run industries and serve domestic purposes, makes it critical for the nations in the Middle East to have a strong international banking system to conduct transactions across the globe accurately and effectively. Qatar is a growing nation in the Middle East with primary operations in oil and gas export as well increasing its potential in areas of development in technology focusing on IT and communication. The nation has efficient international operations and con ducts financial transactions between western nations as well as with eastern nations. Since the take over of the government by H.H. Sheikh Hamad Bin Khalifa in 1995, the country is making tremendous progress in deploying its hydrocarbon resources in order to penetrate in the international market and present itself as a financially stable nation in the international market. Further to the increase in the international operations by the countries in the Middle East and the Far East, the Bank for International Settlements developed a framework to co-ordinate the international financial operations as well as create a portfolio for the capital measurement and capital standards which every nation involving in international banking operations is expected to adopt in order to stabilise and put in order the international transactions between countries. The Basel II accord produced by Basel Committee on Banking Supervision aims at achieving International Convergence of Capital Measurement and Capital Standards. The arrangement aims to set a minimum standard to be met by its participating nations in order to achieve capital adequacy by the participating nations in the international market. This report aims at analysing the effects of Basel II accord on Qatar’s banking sector. The objectives of this report are stated below: To analyse the Basel II accord and it’s framework for measuring capital adequacy in the nations participating in the international banking transaction. To investigate the banking sector of Qatar and the effect of Basel II accord on its international operations and capital adequacy. To analyse the effect of Basel II accord on the nation’s two major banks having international operations in Qatar namely, Qatar Industrial Development Bank (QIDB) and Commercial Bank of Qatar (CBQ) and to analyse the impact of Basel II Accord on the Banking Sector of Qatar. Report Outline: The report comprises of the following chapters. Chapter 1: Introduction This chapter introduces the reader to the objectives of the report and presents a broad picture of the report to the reader. Chapter 2: Overview of Basel II Accord This chapter presents with an overview of the Basel II accord. The three pillars of Basel II accord namely Minimum Capital Requirements, Supervisory Review Process and Market Discipline are analysed in detail to provide the reader with a detailed understanding of the consent of Basel Committee on Banking Supervision. Chapter 3: Implications and Critical Analysis of Basel II Accord The literature review on the Basel II Accord in chapter 2 is followed by the critical analysis and its implications on nations (business and political) are presented to the reader before proceeding to present the overview of the Qatar Banking sector.    Chapter 4: Overview of Qatar and its Banking Sector This chapter presents the reader with an overview of Qatar as a nation and its business operations in the International market. Alongside, the chapter analyses the country’s growth in the banking sector and its internationally active banks. Chapter 5: Case Study This chapter conducts a case study analysis on Qatar’s two internationally active banks namely Qatar Industrial Development Bank (QIDB) and Commercial Bank of Qatar (CBQ). The effect of Basel II accord on the banks along with an overview of the bank is presented to the reader. The data used to present the case study is primarily obtained from secondary sources like journals, reports and white papers. This is apparently due the fact that the analysis is conducted on a foreign nation as well as the data available from the secondary sources are also reliable as they are published by legitimate organizations and popular journals.   Chapter 6: Results and Discussions The results of the case study analysis and discussions are carried out in this chapter. This chapter aims to present a clearer picture to the reader on the effects of the Basel II accord on the banks analysed. Chapter 7:   Conclusion and Recommendations The conclusions derived from the case results and discussions on the case study and the overall conclusion on the effect of Basel I accord on the Qatar Banking Sector is presented in this chapter. Alongside, this chapter presents a few constructive recommendations based on the results and discussion on the case study. Chapter 2: Overview of Basel II Accord This chapter begins with an overview of the Bank for International Settlements followed by a detailed analysis of the Basel II accord. The Basel II committee is also analysed alongside in order to provide a deeper insight to the readers. 2.1 Bank for International Settlements Overview and it’s Operations The Bank for International Settlements (Bank for International Settlements) is an international organization looking after international monetary and financial co-operation across the globe. This organization acts as the bank for all the central banks of countries participating in the international finance and banking. The Bank for International Settlements profile states that the bank achieves the aforementioned statement through acting as A forum to promote discussion and facilitate decision-making processes among central banks and within the international financial and supervisory community. A centre for economic and monetary research A prime counter party for central banks in their financial transactions and Agent or trustee in connection with international financial operations. Established in 17th Many 1930, it is the oldest financial organization at the international level. The Bank for International Settlements has three major decision making bodies within the bank to achieve its mission. They are The general meeting of member central banks This meeting is held before the end of four months of the end of the banks annual financial year. The meeting addresses all the issues related to business and the member central banks gather to approve the annual financial statement released by the bank. The Board of Directors The board of directors comprise the central bank governors elected from various participating countries. They monitor the overall operation of the bank and take responsibility for actions to be taken and address issues related to disputes and other major international financial cross border problems. The Management Committee The management committee is the first line representative of the Bank for International Settlements and addresses the day-to-day activities of the bank. This committee primarily manages the monetary and financial co-operation services. The services include Meetings: Apart from the Annual general meeting the Bank for International Settlements organizes meetings on a bimonthly basis. This meeting brings the member central banks together with the aim of monitoring the global economic and financial development and discusses issues on its policies in relation to the monetary and financial stability. Committees and Secretariats Bank for International Settlements has several committees to monitor specific problems and issues in the international finance and cross border loans. Alongside, several other committees and organizations focusing on international financial systems have their secretariats in the Bank for International Settlements and work closely with the bank in order to enhance the overall international banking and cross border finance. Basel committee of the Bank for International Settlements is the committee that laid the specifications for capital measurement and capital standard of the central banks participating in the international banking. Research and Statistics: In order to support its meetings and the activities of the organization’s Basel based committees the Bank for International Settlements carries out regular research on economic, monetary, financial and legal areas of the international banking and cross border finance. Investment services for central banks: Bank for International Settlements also provides security, liquidity and return for its central bank members. The three primary points with respect to this identified by the organization are: To provide security, the Bank has built up a sizeable equity capital and ample reserves. It pursues an investment strategy focused on combining diversification benefits with intensive credit and market risk analysis. To ensure liquidity, the Bank stands ready to repurchase its tradable instruments at little cost to its customers and thus respond quickly and flexibly to their needs. The BIS offers an attractive and competitive return on the funds deposited by central banks and international organisations The Bank for International Settlements focuses on serving the financial needs of central banks of the member countries. Alongside, it also acts as a banker managing the funds for numerous international financial institutions. 2.2: Basel committee Overview The Basel committee was established the member central banks of the Bank for International Settlements in order to create a standard for the international banking and capital framework for crass border finance and lending. The committee was initially set up in 1970 and meets regularly four times a year to discuss the progress in international banking and address issues related to business in this context. The member nations of the committee include Belgium, Canada, France, Germany, Italy, Japan, Luxembourg, the Netherlands, Spain, Sweden, Switzerland, United Kingdom and United States. The country’s central bank and financial institutions that are not active in banking commercially but monitor the financial operations of the nation both at national and international levels represent the nations. The committee does no possess any authority over its member nations banking systems and the decisions of the committee are never intended to have a legal force on its member nations. The Central bank governors of the Group ten countries endorse the committee’s major initiatives. Also the committee reports to the group ten countries central bank governors. The committee first proposed he capital measurement system in 1988 commonly referred to as ‘Basel Capital Accord’. The committee aims in supervising the international banking operations of the nations across the globe. The decisions of the committee endorsed by the group ten countries address various financial issues in the international market outside the groups as well. The major aim of the committee is the ‘close the gaps in international supervisory coverage’ and to ensure that no foreign banking systems escapes the supervision in order to establish a harmony among the member nations of the Bank for International Settlements as well as in the international market. The committee has promoted supervisory standards in the past few years. Some of its major milestones include the following 1997: Cover Principles for effective banking supervision 1999: Core Principles methodology The committee also presented the Basel II accord with revision on international capital framework. This aims to standardise the capital framework of every bank participating in the international banking as well as sets slabs for minimum capital holdings to be met by the banks in order to qualify for international operations. The committee has numerous subgroups to perform specific tasks of the committee in order to achieve the overall motto of the committee. They are listed below Accord Implementation Group Accounting Task Force Capital Group Capital Task Force Core Principles Liaison Group (with 16 non-G10 countries) Cross-Border Banking Group Electronic Banking Group Joint Forum (with IAIS and IOSCO) Joint IOSCO BCBS Working Group on Trading Book Research Task Force Risk Management Group Securitisation Group Transparency Group The next section provides a detailed analysis of the Basel II accord and its various implications on international banking is discussed in chapter 3. 2.3 The Basel II Accord The Basel II accord was released in June 2004 further to the release of the Basel Accord in 2003. The Basel II is a revised edition of the initial Basel capital accord. It is a framework designed to derive the capital holdings of internationally active banks to meet the international standards and sets a minimum level of capital holding which is a primary criteria for the banks. The Basel II framework is aimed to be applied on a consolidated basis over internationally active banks in order to preserve the integrity of capital in the banks with subsidiaries. Also the framework eliminates the double gearing through this approach. The Basel II accord’s framework is also applied on a fully consolidated basis on any parent holding company which acts as a parent entity within a banking group in order to capture the risk on a consolidated basis without missing any element that contributes considerably to the risk of the overall banking system. Alongside, the framework is also applicable to all internationally active banks at every tier of the banking group. Apart from the aforementioned statements one of the principal objectives of the Basel II Accord is to protect the interest of the depositors essentially to ensure that capital recognised capital adequacy measures is readily available for the depositors. Apparently, these measures are aimed to establish a common platform for international banking and cross border finance across the globe. The scope of application extends to the following segments of the international banking and finance entities. Banking, securities and other financial subsidiaries Significant minority investments in banking securities Insurance entities Significant investment in commercial entities. Deduction of investment pursuant to this part The aforementioned entities are obtained from the Basel Committee report on International Convergence of Capital Measurement and Capital Standards, published in June 2004. The Basel II accord overview is based on this report. The illustration in the fig 1 gives a clear picture of the overall scope of application of the Basel II accord. The Basel II accord is split into three pillars. The first Pillar: Minimum Capital Requirements The following subsections provide a detailed analysis on the elements shown in fig 2. 2.4: The First Pillar The First pillar lays down the minimum capital requirements that every internationally active bank should incorporate.   It is split into the following subsection. 2.4.1:   Calculation of Minimum capital requirements The minimum capital requirement is calculated as a measure of the capital ration. The capital ratio in turn is calculated using the regulatory capital and risk-weighted assets. The requirement of this criterion is that the capital ration must be a minimum of 8% or more in order to be eligible for the international activities. Also, in case of a two tier system the capital in tier 2 must not be greater than the tier 1 capital (i.e.) the tier 2 capital can be a maximum of 100% of the tier 1 capital. The capital is accounted from the following sources    Regulatory capital: The minimum accounting capital requirements for the financial institution encompasses the regulatory capital. The Basel II accord has withdrawn the provision to include general provisions in tire 2 capital, which was in effect in the 1988 Accord under the Internal Ratings-Based (IRB) approach.   Furthermore the accord has lain down that the banks using the Internal Ratings Based approach to their other assets mus t compare the amount of total eligible provision with the total expected losses amount to the bank. This eventually increases the capital holding of the bank in order to meet the criteria. Risk Weighted Assets: The Basel II Accord calculates the total risk-weighted assets by multiplying the capital requirement for market risk and operational risk by the reciprocal of the minimum capital ratio of 8% and adding the resulting value to the sum of risk weighted assets for credit risk. Even though this is subject to review the approach lays enormous burden on the bank to increase its minimum capital holdings. Apparently the Basel II Accord is aiming to establish that the internationally active banks must have enough capital to meet its short comings without depending on loans and cross border finance to address its immediate requirements and short comings. The idea though being novel is very intense for the banks to maintain the required minimum capital. 2.4.2: Credit Risk-The Standardised Approach Under this method the Basel committee provides the internationally active banks a choice for calculating their capital requirements for credit risk. The first approach is the standardised method of measuring the credit risk through support from external credit assessments. This method is approved by the Basel committee while the other method is yet to explicitly approved by the committee. Under the alternate method of calculating the credit risk, the bank supervisor can allow banks to use their internal rating systems for calculating the credit risk. Under both the methodologies one should not oversee the fact that the Basel committee is very keen in assessing the credit risk on the capital holdings of the internationally active banks. Even though this is appreciated, the rules are very stringent making it very difficult for the banks for adopt easily. 2.4.3 Credit Risk- Internal Ratings Based Approach The Basel II committee has given supervisory approval for banks to use the Internal Ratings-Based approach to determine their capital requirement for a given exposure subject to certain minimum conditions and disclosure requirements. The risk components considered include Measures of the probability of default (PD), Loss given default (LGD), The exposure at default (EAD), Effective maturity (M) The Basel II accord states that â€Å"The Internal Ratings Based Approach is based on the measure of unexpected loses (UL) and Expected Loses (EL). Under the Internal Ratings Based Approach, the committee expects the bank to categories their exposures in order to identify the different underlying risk characteristics. The categories include corporate, sovereign, bank, retail and equity. These are identified as the corporate asset classes and the approach further expects the bank to identify the subclasses associated with the asset classes in order to measure the credit risk associated with the exposure. The detailed analysis of every corporate class and its associated subclasses is beyond the scope of this report. In essence the Internal Ratings Based Approach gives the bank more liberty to calculate its credit-risk on the minimum capital requirement for a given exposure. But the producers laid by the Basel II Accord is very tedious to adopt and implement for every corporate class exposure and identifying the subclasses associated. 2.4.4: Credit Risk- Securitisation Framework The Basel Committee in its revised accord, has made it mandatory for the banks to apply the Securitisation Framework for determining regulatory capital requirements on exposure arising from traditional and synthetic Securitisation or similar structures that contain features common to both.   The Basel II accord also states that the capital treatment of the Securitisation exposure must be determined on the basis of the economic substance rather than the legal form of the structure. It is apparent that the securities can be structured in many different ways and the committee has approved the use of either the traditional Securitisation or the synthetic Securitisation framework. Also the Basel II accord expects the supervisor to look at the economic substance of transaction in order to determine whether it should be subject to Securitisation framework or not. This gives the discretionary power to the supervisor to decide on a specific transaction whether to include it in the framework or to eliminate it from the framework towards determining the regulatory capital framework. The traditional Securitisation and the synthetic Securitisation framework are discussed below. Traditional Securitisation: The Basel II Accord defines the traditional framework as â€Å"a structure where the cash flow from an underlying pool of exposures is used to service at least two different stratified risk positions or tranches reflecting different degrees of credit risk†. The advantage with this approach is that the payment to the investors is based on the performance of the specified underlying exposures rather than a derivation from an obligation of the entity originating those exposures. Synthetic Securitisation â€Å"A synthetic Securitisation is a structure with at least two different stratified risk positions or tranches that reflect different degrees of credit risk where credit risk of an underlying pool of exposures is transferred, in whole or in part, through the use of funded (e.g. credit-linked notes) or un-funded (e.g. credit default swaps) credit derivatives or guarantees that serve to hedge the credit risk of the portfolio†. This approach leaves the return to the investors in the hands of the performance of the underlying pool. Apparently, the risk associated is higher since the performance can be affected by numerous causes. From the above-mentioned approaches the Basel II accord’s stand for evaluating the capital and minimum capital requirements are evident. 2.4.5: Operational Risk The operational risk is defined by the Basel Committee as the risk associated with the loss resulting from inadequate or failed internal processes, people, systems or external events. This includes the legal risk with the exclusion of strategic and reputational risk. The Basel II Accord has approved three methods for calculating the operational risk and risk sensitivity with the implications on minimum capital requirements. They are: (i) The Basic indicator approach, (ii) the Standardised Approach and (iii) Advanced Measurement Approach. Basic Indicator Approach: In this case the banks should hold capital for the operational risk equal to the average over the past three years of a fixed percentage. This is expressed as a formula below KBIA = [ÃŽ £ (GI1†¦n x ÃŽ ±)] Where KBIA = the capital charge under the Basic Indicator Approach GI = annual gross income, where positive, over the previous three years n = number of the previous three years for which gross income is positive ÃŽ ± = 15%, which is set by the Committee, relating the industry wide level of required capital to the industry wide level of the indicator. This formula is obtained from the Basel II accord for the purpose of reader understanding. Standardised Approach: The standardised approach divides the bank’s activities into eight-business lines namely corporate finance, trading sales, retail banking, commercial banking, payment settlement, agency services, asset management, and retail brokerage. The likelihood of operational risk exposure is calculated from the gross income associated with each business line that serves as an indicator for the scale of business operations by the bank in that specific area of business or business line. This approach is very clumsy since the gross income associated with the business line varies due to numerous reasons both internal and external. Advanced Measurement Approach: The Advanced Measurement Approach equates the regulatory capital requirement with the risk measure generated by the bank’s internal operational risk measurement system using quantitative and qualitative criteria. The banks can use this method only after the approval by the Committee. The Basel II Accord sets the approach for the banks based on their international activity and significant operational risk exposures. Also, when a bank agrees to use a more sophisticated method, it cannot revert back to the easier method without approval from the supervisor. This eventually increases the burden on the banks to choose a sophisticated method. 2.4.6: Trading Book Issues The final segment of the first pillar is the trading book. Basel Committee defines the trading book as a container of both the financial instruments and commodities held either with trading intent or in order to hedge other elements of the trading book. The trading book forms a vital element for the bank since it is the record of the bank’s financial instruments as well as commodities. The Basel II Accord identifies four key principles for the supervisory process. They are listed below. The basic requirements for the eligibility to trading book capital treatment put forth by the Basel II Accord are as follows Clearly documented trading strategy for the position/instrument or portfolios, approved by senior management (which would include expected holding horizon). Clearly defined policies and procedures for the active management of the position Clearly defined policy and procedures to monitor the positions against the bank’s trading strategy including the monitoring of turnover and stale positions in the bank’s trading book 2.3: The Second Pillar- Supervisory Review Process Basel committee was initially set up for the supervising the internationally active banks and produce a common platform for the smooth transactions and cross border finance. The Basel II Accord has established Supervisory Process as one of the three pillars in order to emphasise its stand on supervisory process. The importance of supervisory process is described below. 2.3.1: Importance of Supervisory Process The supervisory review process of the Basel II Accord aims not only to ensure that banks have adequate capital to support all the risks in their business but also intends to encourage the banks to develop and use better risk management techniques in monitoring and managing risks. Alongside, the supervisory process by developing internal capital assessment process and setting capital targets that are commensurate with the bank’s risk profile recognises the importance for bank management in order to improve the atmosphere in the international banking and cross border finance. The Supervisory process evaluates the relationship between the amount of capital held by the bank against the risk, strength and effectiveness of the bank’s risk management eventually guiding the bank and supervising its activities in order to improve the performance of the banks in the international business market and cross border finance. 2.3.2 Four Key Principles of the supervisory review The four key principles identified by the Basel II Accord on the supervisory process is listed below. These principles emphasise on the committee’s focus on supervision and its aim to maintain harmony in the international banking and cross border finance. Principle 1: Banks should have a process for assessing their overall capital adequacy in relation to their risk profile and a strategy for maintaining their capital levels. Principle 2:Supervisors should review and evaluate banks’ internal capital adequacy assessments and strategies, as well as their ability to monitor and ensure their compliance with regulatory capital ratios. Supervisors should take appropriate supervisory action if they are not satisfied with the result of this process. Principle 3: Supervisors should expect banks to operate above the minimum regulatory capital ratios and should have the ability to require banks to hold capital in excess of the minimum. Principle 4: Supervisors should seek to intervene at an early stage to prevent capital from falling below the minimum levels required to support the risk characteristics of a particular bank and should require rapid remedial action if capital is not maintained or restored. 2.3.3: Issues to be addressed There are two specific issues to be addressed by the Supervisory-Review Process. They are Interest Rate Risk in the Banking book: Since it is clear that the Basel Committee’s Basel II Accord Effects on Qatar Banking Basel II Accord Effects on Qatar Banking International banking is increasingly vital for every country in order to create an image for itself in the international finance market Chapter 1: Introduction International banking is increasingly vital for every country in order to create an image for itself in the international finance market. Alongside, the increase in globalisation and the upsurge in outsourcing by multinational companies in the west have created a lot of opportunities for growth in the Middle East and Far Eastern countries. This apparently requires a strong internationally stable financial organization to conduct transactions across the globe without any errors (i.e.) 100% accuracy.   This includes reliability and stability of the bank under extreme situations (like emergency for example), which is highly important to conduct international transactions. Also the potential to meet financial demands during crisis situations is a vital criterion that is considered while presenting themselves in the international market. In addition to the globalisation, outsourcing and export/import growth, there is also a tremendous growth in cross-border finance among the countries in the Middle East and Far East. Along with all these factors the developing nations in the Middle East face a mandatory requirement of a sable international banking system in order to attract foreign investment. The increase in cross border finance activity among the middle eastern countries is also a critical element to be considered for establishing a stable international bank within the nation in order to represent the country in the international finance market. The countries in the Middle East are actively participating in cross-border finance since the dawn of the 21st century. Being a producer of Oil which is a vital ingredient at all levels of life right from day-to-day driving up to power generation for the nation in order to run industries and serve domestic purposes, makes it critical for the nations in the Middle East to have a strong international banking system to conduct transactions across the globe accurately and effectively. Qatar is a growing nation in the Middle East with primary operations in oil and gas export as well increasing its potential in areas of development in technology focusing on IT and communication. The nation has efficient international operations and con ducts financial transactions between western nations as well as with eastern nations. Since the take over of the government by H.H. Sheikh Hamad Bin Khalifa in 1995, the country is making tremendous progress in deploying its hydrocarbon resources in order to penetrate in the international market and present itself as a financially stable nation in the international market. Further to the increase in the international operations by the countries in the Middle East and the Far East, the Bank for International Settlements developed a framework to co-ordinate the international financial operations as well as create a portfolio for the capital measurement and capital standards which every nation involving in international banking operations is expected to adopt in order to stabilise and put in order the international transactions between countries. The Basel II accord produced by Basel Committee on Banking Supervision aims at achieving International Convergence of Capital Measurement and Capital Standards. The arrangement aims to set a minimum standard to be met by its participating nations in order to achieve capital adequacy by the participating nations in the international market. This report aims at analysing the effects of Basel II accord on Qatar’s banking sector. The objectives of this report are stated below: To analyse the Basel II accord and it’s framework for measuring capital adequacy in the nations participating in the international banking transaction. To investigate the banking sector of Qatar and the effect of Basel II accord on its international operations and capital adequacy. To analyse the effect of Basel II accord on the nation’s two major banks having international operations in Qatar namely, Qatar Industrial Development Bank (QIDB) and Commercial Bank of Qatar (CBQ) and to analyse the impact of Basel II Accord on the Banking Sector of Qatar. Report Outline: The report comprises of the following chapters. Chapter 1: Introduction This chapter introduces the reader to the objectives of the report and presents a broad picture of the report to the reader. Chapter 2: Overview of Basel II Accord This chapter presents with an overview of the Basel II accord. The three pillars of Basel II accord namely Minimum Capital Requirements, Supervisory Review Process and Market Discipline are analysed in detail to provide the reader with a detailed understanding of the consent of Basel Committee on Banking Supervision. Chapter 3: Implications and Critical Analysis of Basel II Accord The literature review on the Basel II Accord in chapter 2 is followed by the critical analysis and its implications on nations (business and political) are presented to the reader before proceeding to present the overview of the Qatar Banking sector.    Chapter 4: Overview of Qatar and its Banking Sector This chapter presents the reader with an overview of Qatar as a nation and its business operations in the International market. Alongside, the chapter analyses the country’s growth in the banking sector and its internationally active banks. Chapter 5: Case Study This chapter conducts a case study analysis on Qatar’s two internationally active banks namely Qatar Industrial Development Bank (QIDB) and Commercial Bank of Qatar (CBQ). The effect of Basel II accord on the banks along with an overview of the bank is presented to the reader. The data used to present the case study is primarily obtained from secondary sources like journals, reports and white papers. This is apparently due the fact that the analysis is conducted on a foreign nation as well as the data available from the secondary sources are also reliable as they are published by legitimate organizations and popular journals.   Chapter 6: Results and Discussions The results of the case study analysis and discussions are carried out in this chapter. This chapter aims to present a clearer picture to the reader on the effects of the Basel II accord on the banks analysed. Chapter 7:   Conclusion and Recommendations The conclusions derived from the case results and discussions on the case study and the overall conclusion on the effect of Basel I accord on the Qatar Banking Sector is presented in this chapter. Alongside, this chapter presents a few constructive recommendations based on the results and discussion on the case study. Chapter 2: Overview of Basel II Accord This chapter begins with an overview of the Bank for International Settlements followed by a detailed analysis of the Basel II accord. The Basel II committee is also analysed alongside in order to provide a deeper insight to the readers. 2.1 Bank for International Settlements Overview and it’s Operations The Bank for International Settlements (Bank for International Settlements) is an international organization looking after international monetary and financial co-operation across the globe. This organization acts as the bank for all the central banks of countries participating in the international finance and banking. The Bank for International Settlements profile states that the bank achieves the aforementioned statement through acting as A forum to promote discussion and facilitate decision-making processes among central banks and within the international financial and supervisory community. A centre for economic and monetary research A prime counter party for central banks in their financial transactions and Agent or trustee in connection with international financial operations. Established in 17th Many 1930, it is the oldest financial organization at the international level. The Bank for International Settlements has three major decision making bodies within the bank to achieve its mission. They are The general meeting of member central banks This meeting is held before the end of four months of the end of the banks annual financial year. The meeting addresses all the issues related to business and the member central banks gather to approve the annual financial statement released by the bank. The Board of Directors The board of directors comprise the central bank governors elected from various participating countries. They monitor the overall operation of the bank and take responsibility for actions to be taken and address issues related to disputes and other major international financial cross border problems. The Management Committee The management committee is the first line representative of the Bank for International Settlements and addresses the day-to-day activities of the bank. This committee primarily manages the monetary and financial co-operation services. The services include Meetings: Apart from the Annual general meeting the Bank for International Settlements organizes meetings on a bimonthly basis. This meeting brings the member central banks together with the aim of monitoring the global economic and financial development and discusses issues on its policies in relation to the monetary and financial stability. Committees and Secretariats Bank for International Settlements has several committees to monitor specific problems and issues in the international finance and cross border loans. Alongside, several other committees and organizations focusing on international financial systems have their secretariats in the Bank for International Settlements and work closely with the bank in order to enhance the overall international banking and cross border finance. Basel committee of the Bank for International Settlements is the committee that laid the specifications for capital measurement and capital standard of the central banks participating in the international banking. Research and Statistics: In order to support its meetings and the activities of the organization’s Basel based committees the Bank for International Settlements carries out regular research on economic, monetary, financial and legal areas of the international banking and cross border finance. Investment services for central banks: Bank for International Settlements also provides security, liquidity and return for its central bank members. The three primary points with respect to this identified by the organization are: To provide security, the Bank has built up a sizeable equity capital and ample reserves. It pursues an investment strategy focused on combining diversification benefits with intensive credit and market risk analysis. To ensure liquidity, the Bank stands ready to repurchase its tradable instruments at little cost to its customers and thus respond quickly and flexibly to their needs. The BIS offers an attractive and competitive return on the funds deposited by central banks and international organisations The Bank for International Settlements focuses on serving the financial needs of central banks of the member countries. Alongside, it also acts as a banker managing the funds for numerous international financial institutions. 2.2: Basel committee Overview The Basel committee was established the member central banks of the Bank for International Settlements in order to create a standard for the international banking and capital framework for crass border finance and lending. The committee was initially set up in 1970 and meets regularly four times a year to discuss the progress in international banking and address issues related to business in this context. The member nations of the committee include Belgium, Canada, France, Germany, Italy, Japan, Luxembourg, the Netherlands, Spain, Sweden, Switzerland, United Kingdom and United States. The country’s central bank and financial institutions that are not active in banking commercially but monitor the financial operations of the nation both at national and international levels represent the nations. The committee does no possess any authority over its member nations banking systems and the decisions of the committee are never intended to have a legal force on its member nations. The Central bank governors of the Group ten countries endorse the committee’s major initiatives. Also the committee reports to the group ten countries central bank governors. The committee first proposed he capital measurement system in 1988 commonly referred to as ‘Basel Capital Accord’. The committee aims in supervising the international banking operations of the nations across the globe. The decisions of the committee endorsed by the group ten countries address various financial issues in the international market outside the groups as well. The major aim of the committee is the ‘close the gaps in international supervisory coverage’ and to ensure that no foreign banking systems escapes the supervision in order to establish a harmony among the member nations of the Bank for International Settlements as well as in the international market. The committee has promoted supervisory standards in the past few years. Some of its major milestones include the following 1997: Cover Principles for effective banking supervision 1999: Core Principles methodology The committee also presented the Basel II accord with revision on international capital framework. This aims to standardise the capital framework of every bank participating in the international banking as well as sets slabs for minimum capital holdings to be met by the banks in order to qualify for international operations. The committee has numerous subgroups to perform specific tasks of the committee in order to achieve the overall motto of the committee. They are listed below Accord Implementation Group Accounting Task Force Capital Group Capital Task Force Core Principles Liaison Group (with 16 non-G10 countries) Cross-Border Banking Group Electronic Banking Group Joint Forum (with IAIS and IOSCO) Joint IOSCO BCBS Working Group on Trading Book Research Task Force Risk Management Group Securitisation Group Transparency Group The next section provides a detailed analysis of the Basel II accord and its various implications on international banking is discussed in chapter 3. 2.3 The Basel II Accord The Basel II accord was released in June 2004 further to the release of the Basel Accord in 2003. The Basel II is a revised edition of the initial Basel capital accord. It is a framework designed to derive the capital holdings of internationally active banks to meet the international standards and sets a minimum level of capital holding which is a primary criteria for the banks. The Basel II framework is aimed to be applied on a consolidated basis over internationally active banks in order to preserve the integrity of capital in the banks with subsidiaries. Also the framework eliminates the double gearing through this approach. The Basel II accord’s framework is also applied on a fully consolidated basis on any parent holding company which acts as a parent entity within a banking group in order to capture the risk on a consolidated basis without missing any element that contributes considerably to the risk of the overall banking system. Alongside, the framework is also applicable to all internationally active banks at every tier of the banking group. Apart from the aforementioned statements one of the principal objectives of the Basel II Accord is to protect the interest of the depositors essentially to ensure that capital recognised capital adequacy measures is readily available for the depositors. Apparently, these measures are aimed to establish a common platform for international banking and cross border finance across the globe. The scope of application extends to the following segments of the international banking and finance entities. Banking, securities and other financial subsidiaries Significant minority investments in banking securities Insurance entities Significant investment in commercial entities. Deduction of investment pursuant to this part The aforementioned entities are obtained from the Basel Committee report on International Convergence of Capital Measurement and Capital Standards, published in June 2004. The Basel II accord overview is based on this report. The illustration in the fig 1 gives a clear picture of the overall scope of application of the Basel II accord. The Basel II accord is split into three pillars. The first Pillar: Minimum Capital Requirements The following subsections provide a detailed analysis on the elements shown in fig 2. 2.4: The First Pillar The First pillar lays down the minimum capital requirements that every internationally active bank should incorporate.   It is split into the following subsection. 2.4.1:   Calculation of Minimum capital requirements The minimum capital requirement is calculated as a measure of the capital ration. The capital ratio in turn is calculated using the regulatory capital and risk-weighted assets. The requirement of this criterion is that the capital ration must be a minimum of 8% or more in order to be eligible for the international activities. Also, in case of a two tier system the capital in tier 2 must not be greater than the tier 1 capital (i.e.) the tier 2 capital can be a maximum of 100% of the tier 1 capital. The capital is accounted from the following sources    Regulatory capital: The minimum accounting capital requirements for the financial institution encompasses the regulatory capital. The Basel II accord has withdrawn the provision to include general provisions in tire 2 capital, which was in effect in the 1988 Accord under the Internal Ratings-Based (IRB) approach.   Furthermore the accord has lain down that the banks using the Internal Ratings Based approach to their other assets mus t compare the amount of total eligible provision with the total expected losses amount to the bank. This eventually increases the capital holding of the bank in order to meet the criteria. Risk Weighted Assets: The Basel II Accord calculates the total risk-weighted assets by multiplying the capital requirement for market risk and operational risk by the reciprocal of the minimum capital ratio of 8% and adding the resulting value to the sum of risk weighted assets for credit risk. Even though this is subject to review the approach lays enormous burden on the bank to increase its minimum capital holdings. Apparently the Basel II Accord is aiming to establish that the internationally active banks must have enough capital to meet its short comings without depending on loans and cross border finance to address its immediate requirements and short comings. The idea though being novel is very intense for the banks to maintain the required minimum capital. 2.4.2: Credit Risk-The Standardised Approach Under this method the Basel committee provides the internationally active banks a choice for calculating their capital requirements for credit risk. The first approach is the standardised method of measuring the credit risk through support from external credit assessments. This method is approved by the Basel committee while the other method is yet to explicitly approved by the committee. Under the alternate method of calculating the credit risk, the bank supervisor can allow banks to use their internal rating systems for calculating the credit risk. Under both the methodologies one should not oversee the fact that the Basel committee is very keen in assessing the credit risk on the capital holdings of the internationally active banks. Even though this is appreciated, the rules are very stringent making it very difficult for the banks for adopt easily. 2.4.3 Credit Risk- Internal Ratings Based Approach The Basel II committee has given supervisory approval for banks to use the Internal Ratings-Based approach to determine their capital requirement for a given exposure subject to certain minimum conditions and disclosure requirements. The risk components considered include Measures of the probability of default (PD), Loss given default (LGD), The exposure at default (EAD), Effective maturity (M) The Basel II accord states that â€Å"The Internal Ratings Based Approach is based on the measure of unexpected loses (UL) and Expected Loses (EL). Under the Internal Ratings Based Approach, the committee expects the bank to categories their exposures in order to identify the different underlying risk characteristics. The categories include corporate, sovereign, bank, retail and equity. These are identified as the corporate asset classes and the approach further expects the bank to identify the subclasses associated with the asset classes in order to measure the credit risk associated with the exposure. The detailed analysis of every corporate class and its associated subclasses is beyond the scope of this report. In essence the Internal Ratings Based Approach gives the bank more liberty to calculate its credit-risk on the minimum capital requirement for a given exposure. But the producers laid by the Basel II Accord is very tedious to adopt and implement for every corporate class exposure and identifying the subclasses associated. 2.4.4: Credit Risk- Securitisation Framework The Basel Committee in its revised accord, has made it mandatory for the banks to apply the Securitisation Framework for determining regulatory capital requirements on exposure arising from traditional and synthetic Securitisation or similar structures that contain features common to both.   The Basel II accord also states that the capital treatment of the Securitisation exposure must be determined on the basis of the economic substance rather than the legal form of the structure. It is apparent that the securities can be structured in many different ways and the committee has approved the use of either the traditional Securitisation or the synthetic Securitisation framework. Also the Basel II accord expects the supervisor to look at the economic substance of transaction in order to determine whether it should be subject to Securitisation framework or not. This gives the discretionary power to the supervisor to decide on a specific transaction whether to include it in the framework or to eliminate it from the framework towards determining the regulatory capital framework. The traditional Securitisation and the synthetic Securitisation framework are discussed below. Traditional Securitisation: The Basel II Accord defines the traditional framework as â€Å"a structure where the cash flow from an underlying pool of exposures is used to service at least two different stratified risk positions or tranches reflecting different degrees of credit risk†. The advantage with this approach is that the payment to the investors is based on the performance of the specified underlying exposures rather than a derivation from an obligation of the entity originating those exposures. Synthetic Securitisation â€Å"A synthetic Securitisation is a structure with at least two different stratified risk positions or tranches that reflect different degrees of credit risk where credit risk of an underlying pool of exposures is transferred, in whole or in part, through the use of funded (e.g. credit-linked notes) or un-funded (e.g. credit default swaps) credit derivatives or guarantees that serve to hedge the credit risk of the portfolio†. This approach leaves the return to the investors in the hands of the performance of the underlying pool. Apparently, the risk associated is higher since the performance can be affected by numerous causes. From the above-mentioned approaches the Basel II accord’s stand for evaluating the capital and minimum capital requirements are evident. 2.4.5: Operational Risk The operational risk is defined by the Basel Committee as the risk associated with the loss resulting from inadequate or failed internal processes, people, systems or external events. This includes the legal risk with the exclusion of strategic and reputational risk. The Basel II Accord has approved three methods for calculating the operational risk and risk sensitivity with the implications on minimum capital requirements. They are: (i) The Basic indicator approach, (ii) the Standardised Approach and (iii) Advanced Measurement Approach. Basic Indicator Approach: In this case the banks should hold capital for the operational risk equal to the average over the past three years of a fixed percentage. This is expressed as a formula below KBIA = [ÃŽ £ (GI1†¦n x ÃŽ ±)] Where KBIA = the capital charge under the Basic Indicator Approach GI = annual gross income, where positive, over the previous three years n = number of the previous three years for which gross income is positive ÃŽ ± = 15%, which is set by the Committee, relating the industry wide level of required capital to the industry wide level of the indicator. This formula is obtained from the Basel II accord for the purpose of reader understanding. Standardised Approach: The standardised approach divides the bank’s activities into eight-business lines namely corporate finance, trading sales, retail banking, commercial banking, payment settlement, agency services, asset management, and retail brokerage. The likelihood of operational risk exposure is calculated from the gross income associated with each business line that serves as an indicator for the scale of business operations by the bank in that specific area of business or business line. This approach is very clumsy since the gross income associated with the business line varies due to numerous reasons both internal and external. Advanced Measurement Approach: The Advanced Measurement Approach equates the regulatory capital requirement with the risk measure generated by the bank’s internal operational risk measurement system using quantitative and qualitative criteria. The banks can use this method only after the approval by the Committee. The Basel II Accord sets the approach for the banks based on their international activity and significant operational risk exposures. Also, when a bank agrees to use a more sophisticated method, it cannot revert back to the easier method without approval from the supervisor. This eventually increases the burden on the banks to choose a sophisticated method. 2.4.6: Trading Book Issues The final segment of the first pillar is the trading book. Basel Committee defines the trading book as a container of both the financial instruments and commodities held either with trading intent or in order to hedge other elements of the trading book. The trading book forms a vital element for the bank since it is the record of the bank’s financial instruments as well as commodities. The Basel II Accord identifies four key principles for the supervisory process. They are listed below. The basic requirements for the eligibility to trading book capital treatment put forth by the Basel II Accord are as follows Clearly documented trading strategy for the position/instrument or portfolios, approved by senior management (which would include expected holding horizon). Clearly defined policies and procedures for the active management of the position Clearly defined policy and procedures to monitor the positions against the bank’s trading strategy including the monitoring of turnover and stale positions in the bank’s trading book 2.3: The Second Pillar- Supervisory Review Process Basel committee was initially set up for the supervising the internationally active banks and produce a common platform for the smooth transactions and cross border finance. The Basel II Accord has established Supervisory Process as one of the three pillars in order to emphasise its stand on supervisory process. The importance of supervisory process is described below. 2.3.1: Importance of Supervisory Process The supervisory review process of the Basel II Accord aims not only to ensure that banks have adequate capital to support all the risks in their business but also intends to encourage the banks to develop and use better risk management techniques in monitoring and managing risks. Alongside, the supervisory process by developing internal capital assessment process and setting capital targets that are commensurate with the bank’s risk profile recognises the importance for bank management in order to improve the atmosphere in the international banking and cross border finance. The Supervisory process evaluates the relationship between the amount of capital held by the bank against the risk, strength and effectiveness of the bank’s risk management eventually guiding the bank and supervising its activities in order to improve the performance of the banks in the international business market and cross border finance. 2.3.2 Four Key Principles of the supervisory review The four key principles identified by the Basel II Accord on the supervisory process is listed below. These principles emphasise on the committee’s focus on supervision and its aim to maintain harmony in the international banking and cross border finance. Principle 1: Banks should have a process for assessing their overall capital adequacy in relation to their risk profile and a strategy for maintaining their capital levels. Principle 2:Supervisors should review and evaluate banks’ internal capital adequacy assessments and strategies, as well as their ability to monitor and ensure their compliance with regulatory capital ratios. Supervisors should take appropriate supervisory action if they are not satisfied with the result of this process. Principle 3: Supervisors should expect banks to operate above the minimum regulatory capital ratios and should have the ability to require banks to hold capital in excess of the minimum. Principle 4: Supervisors should seek to intervene at an early stage to prevent capital from falling below the minimum levels required to support the risk characteristics of a particular bank and should require rapid remedial action if capital is not maintained or restored. 2.3.3: Issues to be addressed There are two specific issues to be addressed by the Supervisory-Review Process. They are Interest Rate Risk in the Banking book: Since it is clear that the Basel Committee’s