Concert report Essay Example | Topics and Well Written Essays - 250 words - 1

Concert report - Essay Example These movements are correspondingly arranged in four sonnets. Again, each of the sonnets is further divided into three distinct sections. Each of these sections corresponds to each of the three movements in the concerto. Thus, Vivaldi’s instrumental music tends to sound extra musical. The second piece to be discussed is how Vivaldi provides varied instructions throughout the four concertos. In the second movement of the spring, Vivaldi provides the instruction of The barking dog. In the first movement of The summer, he provides the instruction of Languor caused the heat, and in the second movement of the movement of The autumn, Vivaldi provides instruction of the drunkards have fallen asleep. The texture of each of his concerto also varies. However, each seems to resemble the respective concerto. The third piece to be discussed is Nielsen’s Symphony No.2, Opus 16, The Temperaments. Through this, Nielsen provides and exclusive thrilling musical experience which is described as a depiction of the essential component of human personality. He provided an excellent conducting whether he emphasized on accuracy of dynamics, articulation, balance as well as phrasing. In conclusion, Vivaldi’s Four Seasons Concert was provided an overall thrilling musical experience. The combination of Violinist Nicola’s and Thierry Fischer made the concert incredible. Through the concert, I discovered how varied movements and instructions can make a musical concert very appealing to the

Movie review paper Essay Example | Topics and Well Written Essays - 1500 words

Movie review paper - Essay Example Finch was a lawyer by profession, who accepted the case when asked by the town’s judge to represent a negro man, Tom Robinson, going to be charged with rape of a white girl, Mayella Ewell. Finch loses the case and Robinson gets killed by Sheriff Tate’s deputy while attempting escape. Despite contradictory evidence, the jury comprised of white men found Tom guilty as charged, who was later killed by Sheriff’s deputy while attempting escape. Later, Mayella’s father, Bob Ewell, attacked Scout and Jem but was killed by Radley. Sheriff persuaded Finch that killing Bob was in children’s defense and reported that Ewell fell on his knife. This essay aims to analyze and discuss facts of the cases depicted in the film, the significance and relevance of the roles played by prosecution and plaintiff in the courthouse, the entertainment value of the film and how it relates to the real world, the accuracy in depiction of the legal system and the effects movies ha ve on public opinions (To Kill a Mockingbird). The case of State v. Robinson was central to the story of the film. Robinson was accused of committing crimes, i.e. raping and beating Mayella. According to the testimony of Sheriff Tate, Bob Ewell came to his office and reported that her daughter has been raped by a black man in his house. He went to the crime scene and saw that Mayella was severely beaten. She had abrasions on her head and arm, finger marks on her neck and black right eye, which occurred about half an hour before. She accused Robinson of the crimes and identified him. According to Mayella Ewell, Robinson helped her in chopping up an old chiffarobe for a nickel. She went inside the house to bring the nickel and when turned around, Robinson attacked, raped and repeatedly beat her. She struggled and screamed and then saw her father standing over her asking who did it. According to Bob Ewell, he was coming home from the woods and heard Mayella screaming upon reaching the

Determinants of Debt Maturity Structures in Pakistan

Determinants of Debt Maturity Structures in Pakistan CHAPTER 1 Rapid changes in financial service industries make it essential to determine the profitability of financial institution. Banks plays a key role in financial market of a country and for this its very important to evaluate that bank operate in efficient manner also what are the factors which affect the profitability of banks. A bank generates profit from the differential between the level of interest it pays for deposits and other sources of funds, and the level of interest it charges in its lending activities. Historically, profitability from lending activities has been dependent on the needs and strengths of customers. In modern era, investors have demanded a more stable revenue stream and banks have therefore placed more emphasis on transaction fees, primarily loan fees but also included service charges on an array of deposit activities and other services (international banking, foreign exchange, insurance, investments, wire transfers, etc.). Lending activities provide the huge size of income to commercial banks. In the past 10 years banks have taken many measures to ensure that bank remain profitable while responding to increasingly changing market conditions. Financial sector of Pakistan structured on Scheduled and Unscheduled Banks. Scheduled Banks are regulated by the State Bank of Pakistans Regulations, through different wings, and are subject to different SBP regulatory requirements such as capital and liquidity reserve requirements. The financial division analysts were projected higher profitability in 2008. That projection made possible because State Bank of Pakistan has raised its discount rate in which the banks can invest to earn a good return. The rising lending rates contributed considerably to ensuring an increased profitability acknowledged by State bank of Pakistan. Factors that affect the profitability of Commercial Banks are both Endogenous and Exogenous. Endogenous factors are within the Control of Management such as quality of management and its policies, efficiency of management in generating revenues and controlling costs, bank capitalization and location. Exogenous factors are outside management control, especially macro economic indices such as Interest rates, Exchange rates, Inflation, and other regulatory and market constraints. The banking sector has been a source of stability for this country, because as you have seen in many countries, the banking sector has weakened and outright nationalization has taken place in some countries. However, the reforms that have taken place in Pakistan banking sector over the past 8 to 10 years have given stability and strength to this sector. There are some ratios, by which can measure the strength of a banking sector, and the most important amongst those ratios is Capital Adequacy; our countrys average capital adequacy 8 percent some banks have less or some banks have more. Macro stability taken some time to trickle down was not something that happens over a month or two, because macro stability causes improvement in the confidence and that improvement caused investment decisions to become positive. As Pakistan banking sector presented stable condition. The country was not very export-dependent either, which is why the global decrease in trade has not had a big impact on Pakistan. Pakistan has the potential to achieve self-sufficiency over a period of time and create a major surplus for agriculture. Banks in Pakistan over the last eight to ten years have been more selective in the client base, apart from the consumer side, because the consumer loans are only 14 percent of the total loans its much lower than other countries. Country had faced some problems in the consumer loans, especially those banks that had become too aggressive in this sector, but the rest whether its corporate or agriculture have remained stable. Growth of Banking Sector: Profitability of the banking sector has been breaking its own record year after year during this ongoing decade. The commercial banking sector in Pakistan regulated by the state bank of Pakistan. SBP introduced several structural changes. Beside higher standards of corporate governance at management and board level, the banks are adhering to SBP prudential regulations, consistent with BIS standards. 36 Commercial Banks (26 local banks and 10 foreign banks) of which 22 were listed on stock exchange. Many merger/acquisition took place. Asset of banking sector registered a increase to reach at Rs 3.7 trillion (2005) with annual growth rate of 15.2% that outpaced economic growth (2005-06) 85 % of banking sector are in private hands. 1.3 Earning And Profitability Strong earnings and profitability profile of banks reflects the ability to support present and future operations. More specifically, this determined the capacity to absorb losses, finance its expansion programs, pay dividend to its shareholders and build up adequate level of capital. There were many different indicators used to serve the purpose, the best and most widely used indicator return on assets (ROA). Earning demanded most visible in case of foreign banks in 1998. The stress on earnings and profitability was expected although the steps taken by the SBP to improve liquidity. Not only liquid assets to total assets ratio turn down sharply, earning assets to total assets also dropped. T-Bill portfolio of banks declined considerably, as that were less compensated. Banks reduced return on deposits to sustain their spread. The financial institutes were not able to contain the decline in ROA due to declining stock and remuneration of their earning assets. CHAPTER 2 LITERATURE REVIEW Research on the determinants of bank profitability has focused on the returns of bank assets and equity, and net interest rate margins. It has traditionally explored the impact on bank performance of bank-specific factors, such as risk, market power, and regulatory costs. Many researchers have focused on the impact of macroeconomic factors on bank performance and profitability. According to Flennery (2000) tested the hypothesis that market rate fluctuations adversely affect commercial bank profits. The finding have responded of revenue and cost of fund to market rate changes then determine whether regulators should take pains to stabilize market conditions. Market rate levels emerge as a prominent influence on intermediary costs and revenues, but the effects of market rate changes effectively cancel one another for most large banks. The research found significant sensitivity to interest rate and it was unstable over the time. By Brick (1994) estimated of market risk, interest rate risk, and foreign exchange risk continues to be unstable. The result of risk differed by bank type and period. As interest rate risk declines, foreign exchange increases; the result suggested that the market continues to reflect changes in the economic and regulatory situation of commercial banks in the pricing of bank stocks. The adverse impact of Interest Rate fluctuations on the profitability of Commercial Banks can be hedge with sound application of modern interest rate risk management theories and tools. Used accounting decompositions, as well as panel regressions, Al-Haschimi (2007) studied the determinants of bank net interest rate margins in 10 Sub Saharan African countries. Author found that credit risk and operating inefficiencies explain most of the variation in net interest margins across the region. Macroeconomic risk has only limited effects on net interest margins in the study. DemirgÃÆ' ¼ÃƒÆ' §-Kunt and Huizinga (1999) used bank level data for 80 countries for the periods 1988-95; analyze how bank characteristics and the overall banking environment affect both interest rate margins and bank returns. In considering both measures, this study provides a decomposition of the income effects of a number of determinants that affect depositor and borrower behavior, as opposed to that of shareholders. Results suggested that macroeconomic and regulatory conditions have a pronounced impact on margins and profitability. Lower market concentration ratios lead to lower margins or profits, while the effect of foreign ownership varies between industrialized and developing countries. Foreign banks have higher margins and profits compared to domestic banks in developing countries, while the opposite holds in developed countries. Hualan Cia and Weing (1992) studied on the effect of interest rate change on stock return and bank profitability, investigated the sensitivity of Canadian banks stock return and the profitability to change in interest rate. Used the data of Canadian banks on both the actual and unexpected change of different time series of interest rate indices, the short, intermediate and long term interest rate have significant negative correlation with bank stock return and profitability. The analysis showed through regression analysis by calculated the ratios of financial statements of banks. This measured the Canadian bank profitability against interest rate changes found that the net interest income and net income were not significantly related to change of interest rate. Flannery (1981) the study examined the relation between the interest rate sensitivity of common stock returns and the maturity composition of the firms nominal contracts. Used a sample of actively traded commercial banks and stock savings and loan associations, common stock returns are found to be correlated with interest rate changes. The co-movement of stock returns and interest rate changes positively related to the size of the maturity difference between the firms nominal assets and liabilities. Facts supported the hypothesis that the effect of nominal interest rate changes on common stock prices related to the maturity composition of a firms net nominal asset holding. For commercial bank and SL stocks, changes in interest rates were found to be significantly related to stock price movements. Also cross-sectional variation in the interest rate sensitivity measure was significantly related to the maturity mismatch of the bank assets and liabilities. Dependable with the nominal contracting hypothesis, the maturity composition of nominal contracts was found to be a significant factor affecting common stock returns. Coyne (1973) Commercial Bank Profitability by Function, The study was concerned with the cost, price and profit by function. It estimated the profit for real estate, installment, commercial and agricultural loans, and investments for banks stratified by size of deposit and the method, that was used to make that determination; the degree to which the average price (interest rate) by function known to the bank and, expressed by a sample period, whether it was equal to or greater than the cost of funds by function; and the degree to which the bank was able to determine its profit by function. The results of the surveyed were representative of the aggregate commercial banking community, the study concluded by the cost of funds estimates to average balance sheet for the Representative Bank of America (RBA).Raw data were obtained from the Federal Reserve Bank of Clevelands functional cost analysis of forty-one banks. Surveyed to the chief executive officer of 510 commercial banks provides insight into the manner in which commercial banks utilize. The author designed to provide a method of cost and profit calculation to the numerous small and medium-sized banks who indicated in response to the authors survey that the author knew little or nothing about the costs by function. The results of the investigation in general and the profitability of RBA in particular representative of the entire banking community, this study was provide help to individual banks as well as policy-making levels of state and national government where questions concerning matters such as usury laws and price (interest rate) controls appear to be taking a disproportionately large amount of time and effort to resolve. Goddard, Molyneux and Wilson (2004) determined the dynamic panel and cross-sectional regressions used to estimate growth and profit equations for a sample of commercial, savings, and co-operative banks from five major European Union countries during the mid-1990s. Methodologically unified the growth and profit strands in the previous empirical literature. Profit was an important prerequisite for future growth. High capital assets ratio tendency grow slowly in banking sector, and growth was connected to macroeconomic conditions. There were few systematic influences on bank growth. The resolution of profit appears higher for savings and co-operative banks than for commercial banks has attempted to unify the growth and profit strands in the literature by examining the performance of European banks during the 1990s. It reported univariate, bivariate, and multivariate versions of a two-equation model, which attempts to capture two-way causality between growth and profit while controlling for a range of other determinants of bank performance. The growth regressions suggested as banks became larger in relative terms, their growth performance tended to improve further. This pattern was strongest for commercial banks. Banks that sustained high capital-assets and liquidity ratios records low profitability. There was some evidence of a positive association between concentration and profitability, but little evidence of a link between bank-level x-inefficiency and profitability. While such patterns continue, concentration in European banking exhibited a natural tendency to increase. There was proof of positive perseverance of growth, although this tends to decline when additional control variables were included in the bivariate and multivariate growth models. The estimated coefficients on the covered profit term in the growth equations lend strong support to the notion that profit is an important sign to future growth. In the profit regressions, there was some variation in the estimated short-run between ownership types and countries. This reflected the fact that savings and co-operative banks are subject to various business and geographical restrictions that smother competition. The study favored th e SCP hypothesis of a positive association between concentration and profitability, but little apparent relationship between bank level inefficiency and profitability. In Latin America, Gelos (2006) studied the determinants of bank interest margins using bank and country level data. Author found that spreads are large because of relatively high interest rates because of macroeconomic risk, including from inflation, less efficient banks, and higher reserve requirements. In a study of United States banks for the period 1989-93, Angbazo (1997) found that net interest margins reflect primarily credit. In addition, there was evidence that net interest margins are positively related to core capital, non-interest bearing reserves, and management quality, but negatively related to liquidity risk. Ho and Saunders (1981) applied the model of to analyze the determinants of interest margins in six countries of the European Union and the US during the period 1988-95. Authors found that macroeconomic volatility and regulations have a significant impact on bank interest rate margins. The results also suggested an important trade-off between ensuring bank solvency, defined by high capital to asset ratios, and lowering the cost of financial services to consumers, as measured by low interest rate margins. Athanasoglou, Delis and Staikouras (2006) applied a dynamic panel data model to study the performance of Greek banks over the period 1985-2001, and find some profit persistence, a result that signal that the market structure not perfectly competitive. The results also showed that the profitability of Greek banks shaped by bank-specific factors and macroeconomic control variables, which were not under the direct control of bank management and industry formation, did not appear to significantly affect profitability. Athanasoglou (2008) studied the profitability behavior of the south eastern European banking industry over the period 1998-2002. The empirical result suggested that the enhancement of bank profitability in those countries requires new standards in risk management and operating efficiency, which, according to the evidence presented in the paper, crucially affect profits. A key result that effect market concentration was positive, while the picture regarding macroeconomic variables was mixed. A number of studies have emphasized the relation between macroeconomic variables and bank risk. Saunders and Allen (2004) surveyed on pro-cyclicality in operational, credit, and market risk exposures. Such cyclical effects mainly results from systematic risk originate from common macroeconomic influences or from interdependencies across firms as financial markets and institutions consolidate internationally. It ultimately exacerbates business cycle fluctuations due to adverse effects on bank lending capacity. Using equity returns data over the period 1973-2003, Allen and Bali (2004) examined the disastrous risk of financial institutions. Results suggested evidence of pro-cyclicality in both tragic and operational risk measurements, implying that macroeconomic, systematic, and environmental factors play a considerable role in determining the risk and returns of financial institutions. Pi and Timme (1993) investigated the relationship of concentration of decision management and control in one person on the cost efficiency level of the bank and return on assets. On the basis of the study found that the banks whose Chairman and CEO be same person had significantly less efficiency than those banks that possessed not similar governance structure and show that performance was affected by top management structure. Isik and Hassan (2003) estimated cost, allocate, technical, pure technical and scale efficiency of Turkish banking industry from 1988 to 1996. This study considered capital, loan able funds as bank short-term loans, long-term loans, risk adjustment off balance sheet items and other earning assets as output of bank. Thistle, McLeod and Conrad (1989) have found that (a) balance sheet composition depends on both the level and change in interest rates , (b) banks response to changes in interest rates in different, depending on whether rates are rising or falling. Authors determined the relation between banks portfolio of assets and liabilities and interest rate was stable. Several possible caused of instability. The econometric techniques employed allow for continuous change in the structure of the empirical model. The study found that the portfolio-interest rate relationship depends on the level of interest rates and exogenous assets, as well as their rate and direction of change Samy Ben Naceur (2005) investigated the impact of banks characteristics, financial structure and macroeconomic indicators on banks net interest margins and profitability in the Tunisian banking industry for the 1980-2000 periods. The study found individual bank characteristics explained a substantial part of the within-country variation in bank interest margins and profitability. High interest margin and profitability tend to be associated with banks that hold a relatively high amount of capital, and with large overheads. The study found that the inflation had a positive force for net interest margin; while economic growth has no incidence. Another factor was financial structure and its impact on banks interest margin and profitability; found that concentration be less beneficial to the Tunisian commercial banks than competition whereas for stock market development had a positive effect on bank profitability. This reflected the corresponding between bank and stock market growth. The study found that the disintermediation of the Tunisian financial system was favorable to the banking sector profitability. Some authors examined on banking of south European region, the determinants of bank interest margins adopt two alternative modeling frameworks used dealership approach and a micro-model of the banking-firm approach, study found bank as a dynamic dealer, setting interest rates on loans and deposits to balance the asymmetric arrival of loan demands and deposit supplies by Staikouras. The bank interest margins were shown to be fees charged by banks for the provision of liquidity. The alternative approach was the micro-model of the banking firm, the study found the banking firm in a static way, setting where demands and supplies of deposits and loans simultaneously clear both markets. Choi, Elyasiani and Kopecky (1992) estimated a multi-index model that considered market risk, interest sensitivity, and exchange rate risk of commercial bank stock returns. Dummy models were used to separate the period of pre- and post-October 1979 and to split the results attributable to money center banks from other banks. A significant exchange rate effect occurs for money center banks after October 1979, while interest sensitivity was stronger before October 1979. The exchange rate effect was attributing to raised hedge foreign loan exposure of money center banks. The bank profitability typically measured by the return on assets (ROA) and/or the return on equity, usually expressed as a function of internal and external determinants. Internal determinant factors that were mainly influenced by a banks management decisions and policy objectives. Such profitability determinants are the level of liquidity, provisioning policy, capital adequacy, expenses management, and bank size. On the other hand, the external determinants, both industry and macroeconomic related, also known variables that reflect the economic and legal environments where the financial institution operates. By Bourke (1989) determined; Liquidity risk, arising from the possible inability of a bank to accommodate. Decreased in liabilities or to fund increases on the assets side of the balance sheet, considered an important determinant of bank profitability. The loans market, especially credit to households and firms, risky and has a greater expected return than other bank assets, such as government securities. That expected a positive relationship between liquidity and profitability. Duca and McLaughlin (1990) studied that variations in bank profitability were largely attributable to variations in credit risk, since increased exposure to credit risk normally associated with decreased firm profitability. Miller and Noulas (1997) suggested that the more financial institutions are exposed to high risk loans, the higher the accumulation of unpaid loans and the lower the profitability. Even though leverage (capitalization) has been demonstrated to be important in explaining the performance of financial institutions, its impact on bank profitability was ambiguous. As lower capital ratios suggest a relatively risky position, one might expect a negative coefficient on this variable. Molyneux and Thornton (1992) observed a positive relationship, suggesting that high profits earned by firms be appropriated in the form of higher payroll expenditures paid to more productive human capital. It should be appealing to identify the dominant effect, in a developing banking environment like Malaysia. Authors used Bank size to capture potential economies or diseconomies of scale in the banking sector. The variable controls for cost differences and product and risk diversification according to the size of the financial institution. The first factor could lead to a positive relationship between size and bank profitability were significant economies of scale, while the second factor negative one was increased diversification leads to lower credit risk and lower returns. Berger, Hanweck, Humphery (1987) discussed that marginal cost savings can be achieved by increasing the size of the banking firm, especially as markets develop. Eichengreen and Gibson (2001) suggested that the effect of a growing banks size on profitability may be positive up to a certain limit. Beyond the point, the effect of size was negative due to bureaucratic and other reasons. Bank profitability be sensitive to macroeconomic conditions despite the trend in the industry towards greater geographic diversification and larger use of financial engineering techniques to manage risk associated with business cycle forecasting. Generally, higher economic growth encourages bank to lend more and permits them to charge higher margins, as well as improving the quality of their assets. 2.1 The Determinants of Bank Performance: Studies on the determinants of banks interest margin and profitability have focused on single country sides and a panel of countries. 2.1a Single country studies As most of the studies on bank performance are conducted in the US and emerging markets. Neeley and Wheelock (1997) explored the profitability of a sample of insured commercial banks in the US for the 1980-1995 periods. Authors found that bank performance positively related to the annual percentage changes in the states per capita income. The main Studies on the determinants of banks performance in emerging countries were carried out in Colombia Barajas et al. (1999) document significant effects of financial liberalization on banks interest margins for the Colombian case. Although the overall spread has not declined after financial reform, the relevance of the different factors behind the bank spreads were affected by such measures. Another change linked with the liberalization process was the increase of the coefficient of loan quality after the liberalization. Afanasieff, Lhacer and Nakane (2002) make used of panel data techniques to uncover the main determinants of the bank interest spreads in Brazil. Ben Naceur and Goaied (2001) investigated the determinants of the Tunisian banks performances during the period 1980-1995. The research indicated that the best performing banks were those who had struggled to improve labor and capital productivity, maintained a high level of deposit accounts relative to their assets and had been able to reinforce their equity. Guru, Staunton and Balashanmugam (2002) attempted to identify the determinants of successful deposit banks in order to provide practical guide for improved profitability performance of these institutions. The study was based on a sample of 17 Malaysian commercial banks over the 1986-1995. The profitability determinants were divided in two main categories, internal determinants (liquidity, capital adequacy and expenses management) and the external determinants (ownership, firm size and external economic conditions). The finding of that study revealed that efficient expenses management was one of the most significant in explaining high bank profitability. Among the macro indicators, high interest ratio was associated with low bank profitability and inflation was found to have a positive effect on bank performance. 2.1b Panel country studies The panel country studies were focused on European companies and developed and developing countries. Molyneux and Thornton (1992) were the first to explore thoroughly the determinants of bank profitability on a set of countries. Authors used sample of 18 European countries during the 1986-1989. The finding represented a significant positive association between the return on equity and the level of interest rates in each country, bank concentration, and government ownership. Abreu and Mendes (2002) investigated the determinants of banks interest margins and profitability for some European countries in the last decade. The authors reported that well capitalized banks face lower expected bankruptcy costs and advantages translate into better profitability. Although with a negative sign in all regressions, the unemployment rate was relevant in explaining bank profitability. Bashir (2000) examined the determinants of Islamic banks performance across eight Middle Eastern countries for 1993-1998. A number of internal and external factors were used to predict profitability and efficiencies. Controlling for macroeconomic environment, financial market situation and taxation, the results showed that higher leverage and large loans to asset ratios, lead to higher profitability. The author reported in his study that foreign-owned banks are more profitable that the domestic. The result also found the evidence that taxation impacts negatively bank profitability. Final result of study was that macroeconomic setting and stock market development have a positive impact on profitability. DemerguÃÆ' §-Kunt and Huizingha (1999) examined the determinants of bank interest margins and profitability using a bank level data for 80 countries in the 1988- 1995 period. The set of variables included several factors accounting for bank characteristics, macroeconomic conditions, taxation, regulations, financial structure, and legal indicators. The study reported that a larger ratio of bank assets to GDP and a lower market concentration ratio lead to lower margins and profits. Foreign banks have higher margins and profits than domestic banks on developing countries, while the opposite prevail in developed countries. DemerguÃÆ' §-Kunt and Huizingha (2001) presented evidence on the impact of financial development and structure on bank profitability using bank level data for a large number of developed and developing countries over the 1990-1997 period. The study found that financial development has a very important impact on bank performance. It reported that higher bank development was related to lower bank performance. Stock market development on the other hand, leads to increased profits and margins for banks especially at lower levels of financial development, indicating complementarities between bank and stock market. CHAPTER 3 THEORETICAL FRAMEWORK AND HYPOTHESIS The interest rate assummed to be one of the most important factors that affect commercial banks profitability. The issue which deals in the study was the affect of market interest rate fluactuation has adversly related to commercial bank profitability. This thesis study bring opportunity to established a relationship between fluctuations in interest rates and the performance of commercial banks in Pakistan during the period of 2004- 2008. The main purpose of this study was to determine the implication of fluctuations in market interest rates on the profitability of commercial banks in Pakistan. This study provide Major causes of interest rate fluctuations The extent to which commercial banks are set to manage interest rate related risks. Major causes of Interest Rate Fluctuation were unstable government Policies, Unstable Economic Environment, unavailability of long-term funds, Inflation. The factors that affect the commercial bank profitability were significant mismatch in the maturity profiles of Assets and Liabilities, Frequent Interest Rate Fluctuations, under capitalization of banks, Poor Collateral of credits. Pakistans financial sector included nationalized, foreign, and private banks; and Non-banking Financial Institutions (NBFIs) which include Development Finance Institutions (DFIs), Investment Banks, leasing companies, modarabas, and housing finance companies. Scheduled Banks know as also commercial bank regulated by the State Bank of Pakistan regulated through different wings, and subject to different SBP regulatory requirements such as capital and liquidity reserve requirements. Factors that affect the profitability of Commercial Banks are both Endogenous and Exogenous. Endogenous factors are within the Control of Management such as quality of man Determinants of Debt Maturity Structures in Pakistan Determinants of Debt Maturity Structures in Pakistan CHAPTER 1 Rapid changes in financial service industries make it essential to determine the profitability of financial institution. Banks plays a key role in financial market of a country and for this its very important to evaluate that bank operate in efficient manner also what are the factors which affect the profitability of banks. A bank generates profit from the differential between the level of interest it pays for deposits and other sources of funds, and the level of interest it charges in its lending activities. Historically, profitability from lending activities has been dependent on the needs and strengths of customers. In modern era, investors have demanded a more stable revenue stream and banks have therefore placed more emphasis on transaction fees, primarily loan fees but also included service charges on an array of deposit activities and other services (international banking, foreign exchange, insurance, investments, wire transfers, etc.). Lending activities provide the huge size of income to commercial banks. In the past 10 years banks have taken many measures to ensure that bank remain profitable while responding to increasingly changing market conditions. Financial sector of Pakistan structured on Scheduled and Unscheduled Banks. Scheduled Banks are regulated by the State Bank of Pakistans Regulations, through different wings, and are subject to different SBP regulatory requirements such as capital and liquidity reserve requirements. The financial division analysts were projected higher profitability in 2008. That projection made possible because State Bank of Pakistan has raised its discount rate in which the banks can invest to earn a good return. The rising lending rates contributed considerably to ensuring an increased profitability acknowledged by State bank of Pakistan. Factors that affect the profitability of Commercial Banks are both Endogenous and Exogenous. Endogenous factors are within the Control of Management such as quality of management and its policies, efficiency of management in generating revenues and controlling costs, bank capitalization and location. Exogenous factors are outside management control, especially macro economic indices such as Interest rates, Exchange rates, Inflation, and other regulatory and market constraints. The banking sector has been a source of stability for this country, because as you have seen in many countries, the banking sector has weakened and outright nationalization has taken place in some countries. However, the reforms that have taken place in Pakistan banking sector over the past 8 to 10 years have given stability and strength to this sector. There are some ratios, by which can measure the strength of a banking sector, and the most important amongst those ratios is Capital Adequacy; our countrys average capital adequacy 8 percent some banks have less or some banks have more. Macro stability taken some time to trickle down was not something that happens over a month or two, because macro stability causes improvement in the confidence and that improvement caused investment decisions to become positive. As Pakistan banking sector presented stable condition. The country was not very export-dependent either, which is why the global decrease in trade has not had a big impact on Pakistan. Pakistan has the potential to achieve self-sufficiency over a period of time and create a major surplus for agriculture. Banks in Pakistan over the last eight to ten years have been more selective in the client base, apart from the consumer side, because the consumer loans are only 14 percent of the total loans its much lower than other countries. Country had faced some problems in the consumer loans, especially those banks that had become too aggressive in this sector, but the rest whether its corporate or agriculture have remained stable. Growth of Banking Sector: Profitability of the banking sector has been breaking its own record year after year during this ongoing decade. The commercial banking sector in Pakistan regulated by the state bank of Pakistan. SBP introduced several structural changes. Beside higher standards of corporate governance at management and board level, the banks are adhering to SBP prudential regulations, consistent with BIS standards. 36 Commercial Banks (26 local banks and 10 foreign banks) of which 22 were listed on stock exchange. Many merger/acquisition took place. Asset of banking sector registered a increase to reach at Rs 3.7 trillion (2005) with annual growth rate of 15.2% that outpaced economic growth (2005-06) 85 % of banking sector are in private hands. 1.3 Earning And Profitability Strong earnings and profitability profile of banks reflects the ability to support present and future operations. More specifically, this determined the capacity to absorb losses, finance its expansion programs, pay dividend to its shareholders and build up adequate level of capital. There were many different indicators used to serve the purpose, the best and most widely used indicator return on assets (ROA). Earning demanded most visible in case of foreign banks in 1998. The stress on earnings and profitability was expected although the steps taken by the SBP to improve liquidity. Not only liquid assets to total assets ratio turn down sharply, earning assets to total assets also dropped. T-Bill portfolio of banks declined considerably, as that were less compensated. Banks reduced return on deposits to sustain their spread. The financial institutes were not able to contain the decline in ROA due to declining stock and remuneration of their earning assets. CHAPTER 2 LITERATURE REVIEW Research on the determinants of bank profitability has focused on the returns of bank assets and equity, and net interest rate margins. It has traditionally explored the impact on bank performance of bank-specific factors, such as risk, market power, and regulatory costs. Many researchers have focused on the impact of macroeconomic factors on bank performance and profitability. According to Flennery (2000) tested the hypothesis that market rate fluctuations adversely affect commercial bank profits. The finding have responded of revenue and cost of fund to market rate changes then determine whether regulators should take pains to stabilize market conditions. Market rate levels emerge as a prominent influence on intermediary costs and revenues, but the effects of market rate changes effectively cancel one another for most large banks. The research found significant sensitivity to interest rate and it was unstable over the time. By Brick (1994) estimated of market risk, interest rate risk, and foreign exchange risk continues to be unstable. The result of risk differed by bank type and period. As interest rate risk declines, foreign exchange increases; the result suggested that the market continues to reflect changes in the economic and regulatory situation of commercial banks in the pricing of bank stocks. The adverse impact of Interest Rate fluctuations on the profitability of Commercial Banks can be hedge with sound application of modern interest rate risk management theories and tools. Used accounting decompositions, as well as panel regressions, Al-Haschimi (2007) studied the determinants of bank net interest rate margins in 10 Sub Saharan African countries. Author found that credit risk and operating inefficiencies explain most of the variation in net interest margins across the region. Macroeconomic risk has only limited effects on net interest margins in the study. DemirgÃÆ' ¼ÃƒÆ' §-Kunt and Huizinga (1999) used bank level data for 80 countries for the periods 1988-95; analyze how bank characteristics and the overall banking environment affect both interest rate margins and bank returns. In considering both measures, this study provides a decomposition of the income effects of a number of determinants that affect depositor and borrower behavior, as opposed to that of shareholders. Results suggested that macroeconomic and regulatory conditions have a pronounced impact on margins and profitability. Lower market concentration ratios lead to lower margins or profits, while the effect of foreign ownership varies between industrialized and developing countries. Foreign banks have higher margins and profits compared to domestic banks in developing countries, while the opposite holds in developed countries. Hualan Cia and Weing (1992) studied on the effect of interest rate change on stock return and bank profitability, investigated the sensitivity of Canadian banks stock return and the profitability to change in interest rate. Used the data of Canadian banks on both the actual and unexpected change of different time series of interest rate indices, the short, intermediate and long term interest rate have significant negative correlation with bank stock return and profitability. The analysis showed through regression analysis by calculated the ratios of financial statements of banks. This measured the Canadian bank profitability against interest rate changes found that the net interest income and net income were not significantly related to change of interest rate. Flannery (1981) the study examined the relation between the interest rate sensitivity of common stock returns and the maturity composition of the firms nominal contracts. Used a sample of actively traded commercial banks and stock savings and loan associations, common stock returns are found to be correlated with interest rate changes. The co-movement of stock returns and interest rate changes positively related to the size of the maturity difference between the firms nominal assets and liabilities. Facts supported the hypothesis that the effect of nominal interest rate changes on common stock prices related to the maturity composition of a firms net nominal asset holding. For commercial bank and SL stocks, changes in interest rates were found to be significantly related to stock price movements. Also cross-sectional variation in the interest rate sensitivity measure was significantly related to the maturity mismatch of the bank assets and liabilities. Dependable with the nominal contracting hypothesis, the maturity composition of nominal contracts was found to be a significant factor affecting common stock returns. Coyne (1973) Commercial Bank Profitability by Function, The study was concerned with the cost, price and profit by function. It estimated the profit for real estate, installment, commercial and agricultural loans, and investments for banks stratified by size of deposit and the method, that was used to make that determination; the degree to which the average price (interest rate) by function known to the bank and, expressed by a sample period, whether it was equal to or greater than the cost of funds by function; and the degree to which the bank was able to determine its profit by function. The results of the surveyed were representative of the aggregate commercial banking community, the study concluded by the cost of funds estimates to average balance sheet for the Representative Bank of America (RBA).Raw data were obtained from the Federal Reserve Bank of Clevelands functional cost analysis of forty-one banks. Surveyed to the chief executive officer of 510 commercial banks provides insight into the manner in which commercial banks utilize. The author designed to provide a method of cost and profit calculation to the numerous small and medium-sized banks who indicated in response to the authors survey that the author knew little or nothing about the costs by function. The results of the investigation in general and the profitability of RBA in particular representative of the entire banking community, this study was provide help to individual banks as well as policy-making levels of state and national government where questions concerning matters such as usury laws and price (interest rate) controls appear to be taking a disproportionately large amount of time and effort to resolve. Goddard, Molyneux and Wilson (2004) determined the dynamic panel and cross-sectional regressions used to estimate growth and profit equations for a sample of commercial, savings, and co-operative banks from five major European Union countries during the mid-1990s. Methodologically unified the growth and profit strands in the previous empirical literature. Profit was an important prerequisite for future growth. High capital assets ratio tendency grow slowly in banking sector, and growth was connected to macroeconomic conditions. There were few systematic influences on bank growth. The resolution of profit appears higher for savings and co-operative banks than for commercial banks has attempted to unify the growth and profit strands in the literature by examining the performance of European banks during the 1990s. It reported univariate, bivariate, and multivariate versions of a two-equation model, which attempts to capture two-way causality between growth and profit while controlling for a range of other determinants of bank performance. The growth regressions suggested as banks became larger in relative terms, their growth performance tended to improve further. This pattern was strongest for commercial banks. Banks that sustained high capital-assets and liquidity ratios records low profitability. There was some evidence of a positive association between concentration and profitability, but little evidence of a link between bank-level x-inefficiency and profitability. While such patterns continue, concentration in European banking exhibited a natural tendency to increase. There was proof of positive perseverance of growth, although this tends to decline when additional control variables were included in the bivariate and multivariate growth models. The estimated coefficients on the covered profit term in the growth equations lend strong support to the notion that profit is an important sign to future growth. In the profit regressions, there was some variation in the estimated short-run between ownership types and countries. This reflected the fact that savings and co-operative banks are subject to various business and geographical restrictions that smother competition. The study favored th e SCP hypothesis of a positive association between concentration and profitability, but little apparent relationship between bank level inefficiency and profitability. In Latin America, Gelos (2006) studied the determinants of bank interest margins using bank and country level data. Author found that spreads are large because of relatively high interest rates because of macroeconomic risk, including from inflation, less efficient banks, and higher reserve requirements. In a study of United States banks for the period 1989-93, Angbazo (1997) found that net interest margins reflect primarily credit. In addition, there was evidence that net interest margins are positively related to core capital, non-interest bearing reserves, and management quality, but negatively related to liquidity risk. Ho and Saunders (1981) applied the model of to analyze the determinants of interest margins in six countries of the European Union and the US during the period 1988-95. Authors found that macroeconomic volatility and regulations have a significant impact on bank interest rate margins. The results also suggested an important trade-off between ensuring bank solvency, defined by high capital to asset ratios, and lowering the cost of financial services to consumers, as measured by low interest rate margins. Athanasoglou, Delis and Staikouras (2006) applied a dynamic panel data model to study the performance of Greek banks over the period 1985-2001, and find some profit persistence, a result that signal that the market structure not perfectly competitive. The results also showed that the profitability of Greek banks shaped by bank-specific factors and macroeconomic control variables, which were not under the direct control of bank management and industry formation, did not appear to significantly affect profitability. Athanasoglou (2008) studied the profitability behavior of the south eastern European banking industry over the period 1998-2002. The empirical result suggested that the enhancement of bank profitability in those countries requires new standards in risk management and operating efficiency, which, according to the evidence presented in the paper, crucially affect profits. A key result that effect market concentration was positive, while the picture regarding macroeconomic variables was mixed. A number of studies have emphasized the relation between macroeconomic variables and bank risk. Saunders and Allen (2004) surveyed on pro-cyclicality in operational, credit, and market risk exposures. Such cyclical effects mainly results from systematic risk originate from common macroeconomic influences or from interdependencies across firms as financial markets and institutions consolidate internationally. It ultimately exacerbates business cycle fluctuations due to adverse effects on bank lending capacity. Using equity returns data over the period 1973-2003, Allen and Bali (2004) examined the disastrous risk of financial institutions. Results suggested evidence of pro-cyclicality in both tragic and operational risk measurements, implying that macroeconomic, systematic, and environmental factors play a considerable role in determining the risk and returns of financial institutions. Pi and Timme (1993) investigated the relationship of concentration of decision management and control in one person on the cost efficiency level of the bank and return on assets. On the basis of the study found that the banks whose Chairman and CEO be same person had significantly less efficiency than those banks that possessed not similar governance structure and show that performance was affected by top management structure. Isik and Hassan (2003) estimated cost, allocate, technical, pure technical and scale efficiency of Turkish banking industry from 1988 to 1996. This study considered capital, loan able funds as bank short-term loans, long-term loans, risk adjustment off balance sheet items and other earning assets as output of bank. Thistle, McLeod and Conrad (1989) have found that (a) balance sheet composition depends on both the level and change in interest rates , (b) banks response to changes in interest rates in different, depending on whether rates are rising or falling. Authors determined the relation between banks portfolio of assets and liabilities and interest rate was stable. Several possible caused of instability. The econometric techniques employed allow for continuous change in the structure of the empirical model. The study found that the portfolio-interest rate relationship depends on the level of interest rates and exogenous assets, as well as their rate and direction of change Samy Ben Naceur (2005) investigated the impact of banks characteristics, financial structure and macroeconomic indicators on banks net interest margins and profitability in the Tunisian banking industry for the 1980-2000 periods. The study found individual bank characteristics explained a substantial part of the within-country variation in bank interest margins and profitability. High interest margin and profitability tend to be associated with banks that hold a relatively high amount of capital, and with large overheads. The study found that the inflation had a positive force for net interest margin; while economic growth has no incidence. Another factor was financial structure and its impact on banks interest margin and profitability; found that concentration be less beneficial to the Tunisian commercial banks than competition whereas for stock market development had a positive effect on bank profitability. This reflected the corresponding between bank and stock market growth. The study found that the disintermediation of the Tunisian financial system was favorable to the banking sector profitability. Some authors examined on banking of south European region, the determinants of bank interest margins adopt two alternative modeling frameworks used dealership approach and a micro-model of the banking-firm approach, study found bank as a dynamic dealer, setting interest rates on loans and deposits to balance the asymmetric arrival of loan demands and deposit supplies by Staikouras. The bank interest margins were shown to be fees charged by banks for the provision of liquidity. The alternative approach was the micro-model of the banking firm, the study found the banking firm in a static way, setting where demands and supplies of deposits and loans simultaneously clear both markets. Choi, Elyasiani and Kopecky (1992) estimated a multi-index model that considered market risk, interest sensitivity, and exchange rate risk of commercial bank stock returns. Dummy models were used to separate the period of pre- and post-October 1979 and to split the results attributable to money center banks from other banks. A significant exchange rate effect occurs for money center banks after October 1979, while interest sensitivity was stronger before October 1979. The exchange rate effect was attributing to raised hedge foreign loan exposure of money center banks. The bank profitability typically measured by the return on assets (ROA) and/or the return on equity, usually expressed as a function of internal and external determinants. Internal determinant factors that were mainly influenced by a banks management decisions and policy objectives. Such profitability determinants are the level of liquidity, provisioning policy, capital adequacy, expenses management, and bank size. On the other hand, the external determinants, both industry and macroeconomic related, also known variables that reflect the economic and legal environments where the financial institution operates. By Bourke (1989) determined; Liquidity risk, arising from the possible inability of a bank to accommodate. Decreased in liabilities or to fund increases on the assets side of the balance sheet, considered an important determinant of bank profitability. The loans market, especially credit to households and firms, risky and has a greater expected return than other bank assets, such as government securities. That expected a positive relationship between liquidity and profitability. Duca and McLaughlin (1990) studied that variations in bank profitability were largely attributable to variations in credit risk, since increased exposure to credit risk normally associated with decreased firm profitability. Miller and Noulas (1997) suggested that the more financial institutions are exposed to high risk loans, the higher the accumulation of unpaid loans and the lower the profitability. Even though leverage (capitalization) has been demonstrated to be important in explaining the performance of financial institutions, its impact on bank profitability was ambiguous. As lower capital ratios suggest a relatively risky position, one might expect a negative coefficient on this variable. Molyneux and Thornton (1992) observed a positive relationship, suggesting that high profits earned by firms be appropriated in the form of higher payroll expenditures paid to more productive human capital. It should be appealing to identify the dominant effect, in a developing banking environment like Malaysia. Authors used Bank size to capture potential economies or diseconomies of scale in the banking sector. The variable controls for cost differences and product and risk diversification according to the size of the financial institution. The first factor could lead to a positive relationship between size and bank profitability were significant economies of scale, while the second factor negative one was increased diversification leads to lower credit risk and lower returns. Berger, Hanweck, Humphery (1987) discussed that marginal cost savings can be achieved by increasing the size of the banking firm, especially as markets develop. Eichengreen and Gibson (2001) suggested that the effect of a growing banks size on profitability may be positive up to a certain limit. Beyond the point, the effect of size was negative due to bureaucratic and other reasons. Bank profitability be sensitive to macroeconomic conditions despite the trend in the industry towards greater geographic diversification and larger use of financial engineering techniques to manage risk associated with business cycle forecasting. Generally, higher economic growth encourages bank to lend more and permits them to charge higher margins, as well as improving the quality of their assets. 2.1 The Determinants of Bank Performance: Studies on the determinants of banks interest margin and profitability have focused on single country sides and a panel of countries. 2.1a Single country studies As most of the studies on bank performance are conducted in the US and emerging markets. Neeley and Wheelock (1997) explored the profitability of a sample of insured commercial banks in the US for the 1980-1995 periods. Authors found that bank performance positively related to the annual percentage changes in the states per capita income. The main Studies on the determinants of banks performance in emerging countries were carried out in Colombia Barajas et al. (1999) document significant effects of financial liberalization on banks interest margins for the Colombian case. Although the overall spread has not declined after financial reform, the relevance of the different factors behind the bank spreads were affected by such measures. Another change linked with the liberalization process was the increase of the coefficient of loan quality after the liberalization. Afanasieff, Lhacer and Nakane (2002) make used of panel data techniques to uncover the main determinants of the bank interest spreads in Brazil. Ben Naceur and Goaied (2001) investigated the determinants of the Tunisian banks performances during the period 1980-1995. The research indicated that the best performing banks were those who had struggled to improve labor and capital productivity, maintained a high level of deposit accounts relative to their assets and had been able to reinforce their equity. Guru, Staunton and Balashanmugam (2002) attempted to identify the determinants of successful deposit banks in order to provide practical guide for improved profitability performance of these institutions. The study was based on a sample of 17 Malaysian commercial banks over the 1986-1995. The profitability determinants were divided in two main categories, internal determinants (liquidity, capital adequacy and expenses management) and the external determinants (ownership, firm size and external economic conditions). The finding of that study revealed that efficient expenses management was one of the most significant in explaining high bank profitability. Among the macro indicators, high interest ratio was associated with low bank profitability and inflation was found to have a positive effect on bank performance. 2.1b Panel country studies The panel country studies were focused on European companies and developed and developing countries. Molyneux and Thornton (1992) were the first to explore thoroughly the determinants of bank profitability on a set of countries. Authors used sample of 18 European countries during the 1986-1989. The finding represented a significant positive association between the return on equity and the level of interest rates in each country, bank concentration, and government ownership. Abreu and Mendes (2002) investigated the determinants of banks interest margins and profitability for some European countries in the last decade. The authors reported that well capitalized banks face lower expected bankruptcy costs and advantages translate into better profitability. Although with a negative sign in all regressions, the unemployment rate was relevant in explaining bank profitability. Bashir (2000) examined the determinants of Islamic banks performance across eight Middle Eastern countries for 1993-1998. A number of internal and external factors were used to predict profitability and efficiencies. Controlling for macroeconomic environment, financial market situation and taxation, the results showed that higher leverage and large loans to asset ratios, lead to higher profitability. The author reported in his study that foreign-owned banks are more profitable that the domestic. The result also found the evidence that taxation impacts negatively bank profitability. Final result of study was that macroeconomic setting and stock market development have a positive impact on profitability. DemerguÃÆ' §-Kunt and Huizingha (1999) examined the determinants of bank interest margins and profitability using a bank level data for 80 countries in the 1988- 1995 period. The set of variables included several factors accounting for bank characteristics, macroeconomic conditions, taxation, regulations, financial structure, and legal indicators. The study reported that a larger ratio of bank assets to GDP and a lower market concentration ratio lead to lower margins and profits. Foreign banks have higher margins and profits than domestic banks on developing countries, while the opposite prevail in developed countries. DemerguÃÆ' §-Kunt and Huizingha (2001) presented evidence on the impact of financial development and structure on bank profitability using bank level data for a large number of developed and developing countries over the 1990-1997 period. The study found that financial development has a very important impact on bank performance. It reported that higher bank development was related to lower bank performance. Stock market development on the other hand, leads to increased profits and margins for banks especially at lower levels of financial development, indicating complementarities between bank and stock market. CHAPTER 3 THEORETICAL FRAMEWORK AND HYPOTHESIS The interest rate assummed to be one of the most important factors that affect commercial banks profitability. The issue which deals in the study was the affect of market interest rate fluactuation has adversly related to commercial bank profitability. This thesis study bring opportunity to established a relationship between fluctuations in interest rates and the performance of commercial banks in Pakistan during the period of 2004- 2008. The main purpose of this study was to determine the implication of fluctuations in market interest rates on the profitability of commercial banks in Pakistan. This study provide Major causes of interest rate fluctuations The extent to which commercial banks are set to manage interest rate related risks. Major causes of Interest Rate Fluctuation were unstable government Policies, Unstable Economic Environment, unavailability of long-term funds, Inflation. The factors that affect the commercial bank profitability were significant mismatch in the maturity profiles of Assets and Liabilities, Frequent Interest Rate Fluctuations, under capitalization of banks, Poor Collateral of credits. Pakistans financial sector included nationalized, foreign, and private banks; and Non-banking Financial Institutions (NBFIs) which include Development Finance Institutions (DFIs), Investment Banks, leasing companies, modarabas, and housing finance companies. Scheduled Banks know as also commercial bank regulated by the State Bank of Pakistan regulated through different wings, and subject to different SBP regulatory requirements such as capital and liquidity reserve requirements. Factors that affect the profitability of Commercial Banks are both Endogenous and Exogenous. Endogenous factors are within the Control of Management such as quality of man

Essay on Verbal and Situational Irony in The Pardoner’s Tale of Chaucer

The Pardoner’s Tale:  Ã‚  Use of Verbal and Situational Irony  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚      In â€Å"The Pardoner’s Tale,† Geoffrey Chaucer masterfully frames an informal homily.   Through the use of verbal and situational irony, Chaucer is able to accentuate the moral characteristics of the Pardoner.   The essence of the story is exemplified by the blatant discrepancy between the character of the storyteller and the message of his story.   By analyzing this contrast, the reader can place himself in the mind of the Pardoner in order to account for his psychology.   In the Prologue of the tale, the Pardoner clearly admits that he preaches for nothing but for the greed of gain.   His sermons revolve around the biblical idea that â€Å"the love of money is the root of all evil† (1 Timothy 6:10).   Ironically, however, the Pardoner condemns the very same vice that he lives by, as he proclaims â€Å"avarice is the theme that I employ in all my sermons, to make the people free in giving pennies—especially to me†.   Thus, covetousness is both the substance of his sermons as well as the mechanism upon which he thrives. He clearly states that repentance is not the central aim of his preaching, by mentioning â€Å"my mind is fixed on what I stand to win and not upon correcting sin†. Rather, his foremost intention is to acquire as many shillings as he can in exchange for his meaningless pardons.   In this regard, one can argue that although the Pardoner is evil, he is not a dissembler.   His psychology is clearly not guided by hypocrisy because he does not conceal his intentions under false pretences.   Chaucer clouds the genuine nature of the Pardoner’s psychology in ambiguity.   Upon r... ...nations of his thought processes, it is clear that the Pardoner does not practice what he preaches.   It is ambiguous, however, as to whether the Pardoner believes what he preaches, but just doesn’t follow his preaches or whether he doesn’t believe what he preaches at all.   It is evident, though, that the Pardoner has an astute mind.   He is highly effective in what he does.   Although he exploits the church for his own personal designs, he succeeds at obtaining that which he pursues.   The efficacy of his strategy is confirmed by Chaucer’s description of the Pardoner as being a â€Å"noble ecclesiastic† and as being unmatched in his trade .   Thus amidst all of his flatteries, there exists a spark of genius that complements his minimal level of ethics.   This intellectual finesse is the riverbed from which all of the products of his mind flow.

Economics and Environmental Hazards Essay

In the 21st century, global warming, littering, waste, and temperature rises have been the subject of focus for many scientists. While examining the many causes of global warming, scientists found fossil fuel emissions and CO2 emissions to be a major cause. Although Earth is known as the Blue Planet for its vast water sources, much of that water is saltwater. Only 3% of the Earth is fresh water, and 70% of that is in glacial ice, unreachable by most. Thus, only 0. 5% of the Earth is made of usable freshwater. This limited amount of water is unsuitable for the world’s expanding population. Much of this water, however, can be easily conserved by switching from bottled water to tap water. Through using tap water and conserving plastic, we can save 27 times the amount of water we currently are saving, and use water sources wisely so as to not run out. Literature Review In the 1930s, the subjects of global warming, water, and lack of resources for fossil fuels became concern for Americans. The New York Times ran their first global warming article in 1929, when it first was considered a myth. Now that global warming has become a major concern for people, we realize how much we have wasted nature’s resources- especially water. Although 75% percent of the Earth is made up of water, less than 1% is drinkable and accessible by people. Countless blogs, websites, newspapers, and academic journals, such as the Journal of Dental Association (2003) and BioMed Central (2009), describe how our thoughtless actions have led to water depletion. Through processing, we waste 26 liters of water to get 1 liter of bottled water. The bottles are made in China using crude oil and transported thousands of miles on oil-eating machines, causing the ozone layer to melt. There are now seldom disputes to the existence of ozone depletion, and media uses print and internet to support the cutting down on bottled water. Bottled Water: Economics and Environmental Hazards. Thousands of years ago, water was a gift from the gods, to be saved and cherished. It allowed ancient civilizations to grow into structured societies, and gave people the ability to survive on domesticating animals and growing plants. Today, in the modern world, water is often taken for granted, and has become a daily thing of our lives. We see water fountains everywhere, and bottled water can be purchased in bulk. However, at the current rate we are using water, freshwater amounts are likely to decimate. This gift from the gods has brought environmental harm to the world and wasted the money of thousands of people. Thus, in order to protect the environment and save our own money, we must make good choices and switch from excessively using bottled water to using tap water. One of the top reasons people often buy bottled water is because of the convenience it provides (Ferrier, 2001, pp. 118-119). Easy life is what the entire economy runs on, as we have seen from the declining economy. As income lessens, people are reverting back to an older lifestyle of doing things themselves instead of purchasing services and goods. While bottled water may taste better because of chemicals that companies add in, it also costs significantly more. A New York Times reporter calculated that eight glasses of New York City tap water were about 49 cents a year, but 8 glasses of bottled water would be 2,900 times more expensive- as much as $1,400 per year. Because water is something that every household needs, it is reasonable to conclude that by switching to bottled water, families could cut their water expenses in half (Helm, 2008) and America as a whole could save. The high costs of purchasing bottled water are often due to the processing that bottled water must go through and the costs of shipping and plastic. Instead of drinking water from a local river or other water source, people choose to drink water shipped from Fiji, where extra charge is added for shipping. The plastic that is used to make the bottle also adds charge. A replacement for this kind of convenience is drinking from the bottles and then continuously refilling them to save your money and the environment. According to the Container Recycling Institute, 85% of water bottles in the United States end up in landfills (cited in Aslam, 2006). Unfortunately, plastic takes up to 1,000 years to decompose and the fuel emissions that delivery trucks emanate destroy the ozone layer. Even more smog and smoke is given off by the manufacturing plant, contributing to global warming, evaporation of our current freshwater supply, and melting/mixing of glacial freshwater and ocean water. About 70% of freshwater is in glacial ice, and as a result of temperatures rising, the freshwater melts, mixing in with saltwater and becoming undrinkable until further chemical processing. Another common myth about bottled water is that it is healthier. A study conducted by University of Birmingham researchers found that â€Å"†¦The majority of participants believed that bottled water has some health benefits but that they were not necessarily significant or superior to the benefits provided by tap water† (BioMed Central, 2009). The participants, users of the university’s sports center, stated that the health benefits of bottled water were negligible, and it was taste and convenience that truly motivated them to buy bottled water. Some research even suggests the opposite- that bottled water is less beneficial to health than tap water. While communities actively add in fluoride – a cavity fighter- to the water supply, the majority of bottled water contains little to no fluoride (Rugg-Gunn, 2003). Many large water companies currently undergo processes such as distillation and/or osmosis – both remove all fluoride from the water (American Dental Association, 2003). Since we now know that bottled water is not healthier than other water sources, we must reflect again on the numerous drawbacks of bottled water. Landfills continue to grow and grow, leading to larger emissions of ozone-depleting gases (Sarma, 2002). Birds and other small animals choke on plastic, mistaking it for food, and also die as a result. The ecosystem is dying as a result. The world works as a whole, a cycle, a circle. The consequences of our actions will always come back to bite us, or in the case of water, our posterity when they have low water supply. Conserving water today will benefit people later. In addition, as we become closer and closer to high UV radiation exposure and losing our ozone layer, scientists are frantically trying to build labs, gather money, and conduct extensive research about how to conserve the environment and water. By not procrastinating, and saving plastic and water resources now, we will save great amounts of money. The exotic island of Fiji is known for its pure, fresh, crisp water, even to Americans who live thousands of miles away. A 16 ounce bottle of Fiji water currently costs from $1. 50 to $2. 50. At a rate like that, when we are at the edge of the Great Lakes and other vast water sources, but purchase water from the other side of the world, our money is being sold away to foreign countries. Most of 2. 7 million tons of plastic used for bottling and packaging come from China (Aslam, 2006). The result is a national economic breakdown, not only in the water industry, but in all industries, since people cannot cut down on the amount of water they need to drink. It takes 63 million gallons of oil per year to manufacture water bottles (Niman, 2007). That is not only more water than Fijians themselves drink that we are buying, but also 63 million extra gallons of oil and plastic that we toss away. Ironically, one third of Fijians are in destitution and lack the amount of water they need. Because one liter of bottled water uses 26 liters of water, one kilogram of fossil fuel, and one pound of CO2 (Thangham, 2007), little is left for the Fijians in destitute. This is true for not only Fiji waters, but all waters in the world. In 2007, Fiji, one of the world’s most popular drinking water sources, became the first bottled water company to release its carbon footprint -85,396 metric tons of CO2eq (Corporate Social Responsibility, 2008). Imagine the carbon footprint total for the world, or even the United States. Perhaps American water companies have not released their carbon footprints because of how overwhelmingly large they are. If we could cut down on how much bottled and imported water we drank, we could preserve a large amount of water for the future.

Comparison of Parent-Child Relationship in Two Novels

The Parent-Child relationship in Where Are You Going, Where Have You Been, written by Joyce Carol Oates and in In the Gloaming, written by Alice Elliott Dark are two different demonstrations of relationships that parents and children have with one another. In Where Are You Going, Where Have You Been the Parent-Child Relationship was strained and distant in In the Gloaming, the Parent-Child Relationship was close and open. In Where Have You Been, Where Are You Going? Connie and her mother were always having conflicts with each other.Connie was a very beautiful girl and Connie thought her mother was jealous of her beauty. Her mother was probably not jealous of Connie but concerned and thought she would attract the wrong attention. Connie’s mom constantly made remarks about Connie’s makeup and how her hairspray smelt. Connie’s mother often ridiculed Connie when Connie looked in the mirror by saying, â€Å"Stop gawking at yourself. , who do you think you are? You th ink you are so pretty. † Connie would become so angry with her mother, she even wished her mother dead.Connie never liked to speak to her mother and did not want to be around her mother. In the presence of her mother Connie could not be herself so when she was away from her mother she would act and dress inappropriate for a 15 year old girl. Connie’s motivation for dressing provocatively was to attract attention from boys. Unbeknownst to Connie her mother was right, looking and dressing inappropriate would eventually cause Connie extreme danger. In the story In the Gloaming the Parent-Child Relationship was very different.Instead of being strained and distant the relationship are strong and loving. Laird’s mother was a compassionate mother who was so determined to make her son happy that it became an obsession. The only thing Laird’s mother cared about and thought about was making Laird happy. Laird and his mother often talked at enormous length about life , love and happiness. Laird’s mother was extremely open with Laird about her life. Laird also enjoyed talking to his mother about life, love and dreams. The dialogue between Laird and his mother would often become very personal.Laird was always thinking about his mother. Laird always wanted to know what she cared about and always wanted his mother’s opinion. Every night at sunset Laird, his mother and his father would eat dinner together. After dinner Laird’s father would go to his study work while Laird and his mother talked about everything. Laird and his mother would look out of the window and watch the sunset, the sky would turn a heather color, they would refer to this time of night as the â€Å"gloaming†. The gloaming became more than a sunset it became a symbol to Laird and his mother.Laird and his mother looked forward to their special time when nothing else mattered but themselves and their conversation. Laird’s mother treasured this speci al time because Laird was very ill and would soon die. Laird needed to know everything about his mother before he died and Laird’s mother needed to know everything about Laird before he died. So, every night they would sit and talk for hours. Laird was the love of his mother’s life, he and his mother were inseparable until the day he died. The relationship between Connie and her mother may have been different if one of them was ill.Furthermore, the relationship between Laird and his mother may have been more strained if Laird had not been ill and needed his mother so much. The Parent-Child relationship can be very different and at times very difficult. Some children see their parent’s in a different point of view than their siblings. The relationship can be a positive experience or a negative experience. Laird and his mother’s conversations became something to look forward to. Connie’s conversations with her mother became something she resented and dreaded.