Magnetic Resonance Imaging Essay Example for Free

Magnetic Resonance Imaging Essay This measurable activity can be detected by a Magnetic Resonance Imaging, or MRI, machine. The machine created a powerful magnetic field which aligned the hydrogen atoms in the body. Radio waves are used to alter the alignment of this magnetization which causes the atoms to emit a weak radio signal that can be detected by the machine. The subject lies very still in the MRI machine, essentially a giant cylinder. A movement of more than 3 mm could render the image useless so absolute stillness is a necessity. The test can take anywhere from 15 minutes to 2 hours and during that time the subject will undergo various stimulants designed to alter the neural activity (MRI 2007). In regards to detecting deceit, the subject would undergo a series of questions while the neural activity is monitored. At least two companies have been established to use fMRI for lie detection purposes, No Lie MRI, Inc. and Cephos Corporation (FRMI 2007). They represent the latest in scientific achievement for detecting the truthfulness of people. Since this technique is so new, there will obviously be questions to its reliability. However, these questions will work themselves through as more research is done on this particular topic. Unfortunately, several court cases may have determined that this technique may not be admissible in court. On the federal side the court case Daubert v. Merrell Dow Pharmaceuticals changed how scientific â€Å"expert† evidence was determined to be admissible. According to D. Arthur Kelsey, the â€Å"pre-Daubert courts allowed scientific testimony when the underlying scientific theory or basis of opinion was generally accepted as reliable within the expert’s particular field† (Kesley 2006). This concept, as noted by Wikipedia entries, is known as the Frye test. It came about in 1923 in the case Frye v. United States which asked if the evidence was relevant and generally accepted. Modern critics complained that the Frye test was antiquated and did not allow for new, cutting-edge scientific evidence to be presented (Frye 2007). Other critics were concerned that if the evidence was allowed purely on relevance alone, too much scientific evidence include so called â€Å"junk science† would result. The Frye test was simply too simple for it to be used in the complex, modern world. An overhaul of that standard was needed. One man pushing for reform was Peter Huber. He wrote a book called Galileo’s Revenge: Junk Science in the Courtroom. The book asserted that junk science was destroying the American courtroom. His theory was based on two premises. First, the average juror was too stupid to understand what is and what is not junk science. The second premise was the result of junk science discourages companies from introducing better products in fear or being sued (Daubert 2007). In 1993, the Supreme Court revisited this issue to answer the modern problem of new scientific evidence. The ruling gave birth to the Daubert standard. This standard is based on two aspects: relevancy and reliability. The question of relevancy asks whether the evidence has anything to do with the case. Although some expert testimony can be related to a case, it may not necessarily be relevant to it. To determine whether evidence is considered reliable, the Supreme Court determined that the conclusions of the expert witness must have been derived using the scientific method (Daubert 2007). To meet the standard of the scientific method, four things are needed. First, the test or theory must be falsifiable, refutable, and testable. This is also called empirical testing. Second, it must be â€Å"subjected to peer review and publication. † Third, it must have a â€Å"known or potential error rate and the existence and maintenance of standards concerning its operation. † Finally, the theory and technique is generally accepted by a relevant scientific community† (Daubert 2007). Technically speaking the Frye test contained the last aspect of the scientific method, but it failed to include the first three. To summarize, the Daubert standard asks five questions from every new technique to determine if it is admissible. First, â€Å"has the technique been tested in actual field conditions (and not just in a laboratory)? † Second, â€Å"has the technique been subject to peer review and publication? † Third, â€Å"what is the known or potential rate of error? Is it zero, or low enough to be close to zero? † Fourth, â€Å"do standards exist for the control of the techniques operation? † Finally, â€Å"Has the technique been generally accepted within the relevant scientific community? (Daubert 2007)† Initial reaction was that of praise for the reform. However, according to the Tellus Institute the standard in practice has not been favorable. A 2002 RAND study showed a significant increase in the rejection of expert testimony of which 90% fell against the plaintiffs (Daubert 2007). The problem is judges are not scientists yet Daubert asks them to make scientific decisions. Essentially they because â€Å"amateur scientists. † In some states, plaintiffs prefer to use the state court because they tend to be friendlier to expert witnesses (Tellus 2007). Kelsey asserts that the Daubert shifts the question of who decides whether the scientific evidence is reliable from the scientific community to the judge. Under federal law, using the Daubert standard, the fMRI would questionable as admissible evidence. The problem is with the complex nature of the test itself. Although MRIs are generally accepted within the medical community, this concept is no longer used as a test since the Daubert standard replaced the Frye test. Judges now have to weigh whether or not the fMRI is reliable as evidence. For evidence to be considered admissible, the conclusions must derive from the scientific method. Unfortunately, one of the biggest critiques of the fMRI is how it does not follow the method of the scientific method. Wikipedia points out that â€Å"many theoretical models used to explain fMRI signals are so poorly specified that they are not falsifiable. † This is a central tenet of the scientific model. This only can exclude it as evidence and any good defense attorney will point that out to a judge. Also, critics claim that fMRI is simply a modern day phrenology. Phrenology is the theory that claims to be able to determine character and personality traits based on the shape of the head, according to Wikipedia (2007). This concept is derived by how fMRI looks for where hemodynamic activity occurs in the brain as opposed to how. Although this comparison is hardly fair considering one is not based on science and the other is. Nevertheless, it may be enough to have a judge throw it out as evidence. Relevancy also comes into question as the second part of Daubert. Although truth is always relevant in a case, are the specific subject’s results from an fMRI during questioning relevant? Based on this, most likely the fMRI would not pass the Daubert standard and not deemed admissible in court. This is unfortunate as the Daubert standard is essentially calling fMRI lie detection â€Å"junk science† when it is far from it. It is new science and the federal system does not allow for a practical way for new science to present itself. Rather it applies an old model against the new science. However, some states are making laws that allow techniques such as fMRI to be admissible. The state of Virginia is one such state that has sought to ensure that its evidence not fall prey to that of the Daubert standard. Kesley points out that Virginia disliked the Frye test more than the federal courts because it believed is yielded far too much power to the scientific community and not to the consensus of the specific jury. As a result in 1993 Virginia passed a law that used a then-existing Federal Rule of Evidence 702 to change its statues on how evidence was looked at. The Supreme Court also looked at the Federal Rule of Evidence and made its ruling on Daubert based on it. However, the Rule 702 has undergone 2000 amendments to make it into what is now the Daubert standard. Virginia, although it notes Daubert, refuses to accept any changes to the system (2006). Kesley goes on stating that expert testimony in Virginia must meet specific requirements. The assumption of the evidence cannot be speculative or rely on insufficient factual basis. It cannot contain â€Å"disregarded† variable, rely on â€Å"dissimilar tests,† or create an â€Å"illusory impression of exactness. † Judges do not deem the evidence reliable or unreliable. Instead they make what is called a â€Å"threshold finding. † Instead of ruling simply whether it is admissible or not, the judge determines whether a reasonable juror could distinguish between reliable and unreliable. Based on this, that state of Virginia would almost certainly accept the fMRI into evidence. Although the fMRI does not necessarily follow that of the scientific standard, this is not a basis to determine if the evidence is admissible in Virginia. So long as its relevancy is not questioned in its use, a judge will likely allow it to be used in court as evidence. Under Virginia statutes, the judge will only determine whether a reasonable juror could determine if the fMRI is reliable in the particular case. Even though there are questions to the fMRI’s exactness, the judge would still allow it to be presented. The Daubert cases shows how sweeping reforms, although well intended can result to a system worse than the one it replaced. By shifting focus from the experts to the judicial system, the Daubert standard placed a power on judges that they are ill-qualified to handle. It is also an insult to potential jurors that they are simply too stupid to determine for themselves what is and what is not. Although the scientific evidence can be confusing, the standard removed any chance to prove to a juror the evidence is indeed authentic, reliable, and trustworthy. The federal courts cannot go back to Frye. Frye opened the door to too much interpretation from the scientific community. Although one segment of the scientific community may agree with a piece of evidence, another may not. Which is correct? Are either correct? Frye left too many questions about the evidence and it yielded too much control to the scientific community. The federal system does need to adapt somehow. They cannot leave it they way it is. In contrast, the state of Virginia has provided a good, fair system for allowing scientific evidence to be presented. They, too, agreed that Frye was inadequate to be effectively used. It may have worked well in 1923, but it was time to move to the 21st century. However, Virginia did not make the mistake of shifting all the decision making from one group to another. Rather it diluted the power yielded by the scientific community and placed some control with the judged. Nevertheless it never removed the importance of the juror to the courtroom. Whereas the federal system seemed to treat the juror as unintelligent and not suited for big decision making, Virginia did not want to take away the big decision from the jurors. For the fMRI system it represents a new technological advance in lie detection. It also represents a new challenge to the courts. Based on the federal court case rulings, the fMRI system would not be allowed as evidence because it does not follow the scientific method. Despite all of its potential, the federal system removes this power tool because of a rigid standard applied to a dynamic technology. Most likely, this will only prevent the federal system from advancing. However, it may also motivate the federal system to change how it views evidence. FMRI, however, will be welcomed in Virginia as evidence. Despite its faults the Virginia system is flexible enough to accomidate new technology such as the fMRI, but is not too flexible to allow â€Å"junk science† to permeate amongst the other evidence. Between the two systems, in regards to how it is applied to fMRI, the Virginia system is more fair and realistic in today’s courtroom. Work Cited Daubert Standard (2007) Wikipedia Foundation. Retrieved Dec. 3, 2007 from http://en. wikipedia. org/wiki/Daubert_standard FRMI (2007) Wikipedia Foundation. Retrieved Dec. 3, 2007 from http://en. wikipedia. org/wiki/FMRI Frye Test (2007) Wikipedia Foundation. Retrieved Dec. 3, 2007 from http://en. wikipedia. org/wiki/Frye_test Haemodynamic Response (2007) Wikipedia Foundation. Retrieved Dec. 3, 2007 from http://en. wikipedia. org/wiki/Haemodynamic_response Kesley, D. Arthur (2006) Virginia’s Answer to Daubert’s Question Behind the Question. Retrieved on Dec 3, 2007 from http://www. ajs. org/ajs/publications/Judicature_PDFs/902/Kesley_902. pdf Lie Detection (2007) Wikipedia Foundation. Retrieved Dec. 3, 2007 from http://en. wikipedia. org/wiki/Lie_detection Tellus Institute (2003) Daubert: The Most Influential Supreme Court Ruling You’ve Never Heard Of. Retrieved Dec. 3, 2007 from http://www. defendingscience. org/upload/Daubert-the-Most-Influential-Supreme-Court-Decision-You-ve-Never-Heard-Of-2003. pdf Lie Detection (2007) Wikipedia Foundation. Retrieved Dec. 3, 2007 from http://en. wikipedia. org/wiki/Lie_detection

Comparison of Networking Feature of Linux and Microsoft Essay Example for Free

Comparison of Networking Feature of Linux and Microsoft Essay 1.0 Comparing Networking Features of Linux Microsoft. Microsoft * Next Generation TCP/IP Stack: this networking feature of windows is available for â€Å"Windows Server 2008† and â€Å"Windows Vista†. It is a â€Å"complete redesign of TCP/IP functionality for both Internet Protocol version 4 (IPv4) and Internet Protocol version 6 (IPv6) that meets the connectivity and performance needs of todays varied networking environments and technologies.† Joe Davies (2008) * Server Message Block 2.0 (SMB): this networking feature of windows is also available for both â€Å"Windows Server 2008† and â€Å"Windows Vista†. It can also be termed as the â€Å"Common Internet File System (CIFS)†. It is used on widows-based computers as a default file sharing protocol. SMB supports: * â€Å"Sending multiple SMB commands within the same packet. This reduces the number of packets sent between an SMB client and server. * Much larger buffer sizes compared to SMB 1.0. * Increases the restrictive constants within the protocol design to allow for scalability. Examples include an increase in the number of concurrent open file handles on the server and the number of file shares that a server can have. * Supports durable handles that can withstand short interruptions in network availability. * Supports symbolic links.† Joe Davies (2008) * Windows Firewall: the windows firewall for the versions â€Å"Windows Server (2008)† and â€Å"Windows Vista† has support for filtering of incoming and outgoing traffic. It also has integrated settings for firewall filtering and Internet Protocol Security (IPSEC). * Network Driver Interface Specification (NDIS) 6.0: this â€Å"specifies a standard interface between kernel-mode network drivers and the operating system. NDIS also specifies a standard interface between layered network drivers, abstracting lower-level drivers that manage hardware from upper-level drivers, such as network transports.† Joe Davies (2008). Linux * Samba: this networking feature of â€Å"Linux† is a file and printer sharing service. It is based on the SMB protocol developed by â€Å"Windows†. Samba allows â€Å"Linux† to act as a SMB client or server. * The inetd Super Server: this is a special network daemon run on â€Å"Linux† applications in order to overcome certain inefficiencies of network daemons. It â€Å"creates sockets on behalf of a number of services and listens on all of them simultaneously. When an incoming connection is received on any of these sockets, the super server accepts the connection and spawns the server specified for this port, passing the socket across to the child to manage. The server then returns to listening.† Dawson T. (2000). * The tcpd Access Control Facility: this is a tool that is used to manage â€Å"host specific† access. â€Å"For TCP services you want to monitor or protect, it is invoked instead of the server program. Tcpd checks if the remote host is allowed to use that service, and only if this succeeds will it execute the real server program.† Dawson T. (2000). 1.1 Interoperability Features of Ubuntu with Microsoft Workstations. Interoperability is the function which allows a system to work with other systems that may be of different brand or have a different operating system. For organisations like â€Å"Rainham Indigo Bank† who wish to setup a networking environment to share files and printer, this is important as they wish to integrate a Linux based operating system to their current work environment which has a Windows based operating system. â€Å"Ubuntu†, the choice of Linux – based operating system, has an interoperability feature known as â€Å"Samba† that supplies the users with file and printer sharing for the Window workstations. Samba.org states that â€Å"Samba is an Open Source/Free Software suite that provides seamless file and print services to SMB/CIFS clients. Samba is freely available, unlike other SMB/CIFS implementations, and allows for interoperability between Linux/Unix servers and Window s-based clients.† The bank can use this package to share printers and files between the Ubuntu server and Widows workstations. Another feature that â€Å"Ubuntu† offers is the ease of authentication. Authentication plays an important part as it helps computers on a network to recognise each another and allows for information to be shared. â€Å"Ubuntu Server† comes with â€Å"Open Lightweight Directory Access Protocol (LDAP)†. This ensures that a shared directory service can be built if it is needed. Supported versions of Ubuntu Server come with â€Å"Likewise-Open†. This is used to integrate with the system using Microsoft Active Directory. Machines on Active Directory can be identified, share credentials and access resources with â€Å"Ubuntu† machines through the use of this software. Resources for Windows clients can easily be provided by â€Å"Ubuntu† servers without an additional security burden. 1.2 Installing Ubuntu and configuring network services for Windows and Linux for file sharing and printing. â€Å"Ubuntu† Installation. After â€Å"Ubuntu† was installed, â€Å"Samba† was downloaded and configured. It was installed through the terminal command using this command: â€Å"sudo apt-get install samba samba-command†. Configuring network settings. Ubuntu accessed via Microsoft. Sharing folders on the network. File manager opened to allow for folder sharing. Sharing folder on Windows from Ubuntu. Shared folder in Microsoft. 1.3 Linux Distribution Costs. Performance The cost associated with the performance is related to the hardware of the â€Å"Ubuntu† server as the server’s performance will be as good as the hardware installed on it. The performance of the server depends on the type of memory installed and how much of it, the brand of the processor as well as its type i.e. single – core, dual – core etc, the processor speed will also play a part in this as well as the motherboard installed and the PCI connectors and serial buses installed.. â€Å"Ubuntu† server process threads often make use of physical resources. High performance can be achieved from relatively low hardware requirements on this server. Therefore, the cost of performance associated with the â€Å"Ubuntu† server is expected to be low. Security Once the â€Å"Ubuntu† server is hardened, it has a low risk of attacks from viruses, remote procedure calls and buffer overflows. Standard installation of â€Å"Ubuntu† has a ready – to – use hardened operating system. Therefore, no additional cost will be needed to implement additional security protection such as anti-virus, firewalls, anti-spyware etc. This is because most security mechanisms are pre-installed or can be installed freely thereby allowing this cost to be low. Support Support for the â€Å"Ubuntu† software can only be obtained from the â€Å"Ubuntu† community, developers and enthusiasts as there are no formal support arrangements available from the vendor. Significant cost will be incurred in order to train staff to use of the server and experienced consultants may be required for support for cases of server downtime or repair. Maintenance Maintenance of the server may incur significant costs as well. This is because only skilled and trained personnel can conduct routine maintenance and maintain the maximum uptime of the server that is required. The maintenance cost of hardware can vary depending on the hardware. From a software perspective, the costs will include maintenance from skilled personnel to upkeep and patch the software as needed.

Comparative Study of the Banks in Nepal

Comparative Study of the Banks in Nepal A well-structured financial sector is of special importance for the economic growth in both developed and developing countries. The commercial banking sector should be well organized and efficient for the growth of an emerging economy. Commercial Banks which forms one of the backbones of the financial sector are the intermediary link in facilitating the flow of funds from the savers to investors. By providing a means of mobilizing domestic savings and proficiently channeling them into productive investments, they lower the cost of capital to investors and accelerate the economic growth of a nation. No underdeveloped country can well progress without setting up a sound system of commercial banking system.  [1]   Nepal is an agrarian based economy with a GDP of $ 33.26 billion  [5]  . Nepalese banking industry has considerable changes over past decades because of liberalization, deregulation, improving information technology and globalization. The financial sector liberalization resulted in the entry of new firms in the market, which also added more pressure on competitiveness of individual banks; deregulation widened the scope of activities and expanded the banking activities; advancement in technology resulted into new methods to perform banking activities. Furthermore, the banks, these days, are entering into non-banking markets while other financial institutions are entering into the banking markets that have conventionally been served by the banks. These changes have altered the structure and market behavior of Nepalese banking industry. Currently there are 26 commercial banks out of which 6 are joint venture banks, 63 development banks and 77 financial institutions in Nepal. At present there is only one international bank operating in Nepal which is Standard Chartered Bank Limited. It started operation in Nepal since 1987 as a joint-venture operation and today it is a part of Standard Chartered Group having an ownership of 75% in the company and 25% shares owned by the Nepalese public. Nepal after its commitment to the World Trade Organization (WTO) during its accession in 2004, has allowed foreign banks to make their foray in Nepal to do only wholesale banking  from Jan. 1, 2010. Initially before the agreement with WTO (GATS), the Central Bank regulation allowed foreign shareholders to acquire maximum of 51% shares. Later the regulation changed which allowed foreign ownership of 75% and the recent regulation of 2010 allows 100% foreign ownership (i.e. allows a local entity to be a branch of a foreign company) in the banking industry. Entering of foreign firms is likely to generate benefits to financial sector as well as the economy as a whole (Chau HB, 2003). The effects can be seen mainly through an increase in efficiency and technological advancements as mentioned above. Over the past decade, the Nepalese banking industry has been doing well and has a number of new firms entering into the market. However, there is only one foreign bank and 6 joint-venture banks in the banking sector, though the government has liberalized the financial sector and allowed foreign banks to have 100% foreign ownership. With limited number of foreign banks in Nepal, it is still unclear whether entering of foreign banks, including joint venture, helps to improve overall performance of banking sector as well as to spillover some benefit to domestic banks in Nepal. Objectives To answer the key question above, there are two objectives of the research paper: To measure and analyze the performance of three types of banks namely domestic bank, joint-venture bank, and foreign bank and to explain the variation in performances of these banks. To identify whether the entry of foreign banks, including joint venture, banks would be beneficial for domestic banks which still dominate the financial market in Nepal. 1.3. Scope and limitations of the Study This study will only focus on three types of banks, i.e. domestic bank, joint-venture bank, and foreign bank, and it will offer an insight on the advantages of foreign banks in Nepal. Furthermore it will provide the reasons pertaining to variations in performance of the banks. The main limitation in this study is that there is only one foreign bank in Nepal till date, so the interpretation of the performance of the foreign bank in Nepal could be restricted to some degree. 1.4. Research Methodology This section develops research methodology to reach the objectives of the study. The banking sector in Nepal will be divided into three groups, namely foreign owned banks; joint-venture banks, and domestic banks. For this research, foreign-owned banks will be classified as those which have started a branch or subsidiary in the host country where the share of foreign bank ranges from 51% to 100% while joint venture banks will be classified as those in which foreign investors own the total equity of 50% or less and domestics banks are those which are purely owned by the Nepalese. The foreign owned banks are separated from joint-venture banks in this study because these two types of banks tend to have different operational management, resulting in their different performance. The research methodology is composed of both quantitative and qualitative analysis. First, the qualitative approach is applied to examine the structure and development of financial sector in Nepal during 2000-2010. The financial policy, especially competition-restriction regulation in Nepalese banking sector is also reviewed, mainly through official documents from central bank and international organization. Then the quantitative approach is developed to measure the performance and efficiency of banking sectors in Nepal. This is done by conducting various financial indicators of three types of banks in Nepal namely foreign bank, joint venture banks and domestic banks. Comparison of the indicators among these three types of banks over the past decades will provide the clear analysis of different performance between foreign-owned and domestic banks. The indicators can be grouped into four aspects, namely profitability; operational costs; staff productivity; risk prevention. Profitability à ¯Ã¢â‚¬Å¡Ã‚ ·Profit Margin (Net Profit/Total Income) Profit margin is very useful when comparing  companies in similar industries. A higher profit margin indicates a more profitable company that  has better control over  its costs compared to  its competitors. Profit margin is  displayed as a percentage; a 20% profit margin, for example, means the company has a net income of $0.20 for each dollar of sales. Profitability à ¯Ã¢â‚¬Å¡Ã‚ · Return on Asset (Net Profit/Total asset) ROA figure gives investors an idea  of how effectively the company is converting the money  it has  to invest into net income. The higher the ROA number, the better, because the company is earning more money on less investment. For example, if one company has a net income of $1 million  and total  assets of $5 million, its ROA is 20%; however, if another company earns the same amount but has total assets of $10 million,  it has  an ROA of 10%. Based on this example, the first company  is better at converting its investment into profit. Profitability à ¯Ã¢â‚¬Å¡Ã‚ ·Ã‚  Return On Equity (Net Profit/Equity) The amount of net income  returned  as a percentage  of shareholders equity.  Return on equity  measures a corporations profitability  by revealing how much  profit a company generates  with the money shareholders have invested.  Ã‚  Higher The ROE better the company. Profitability à ¯Ã¢â‚¬Å¡Ã‚ · Interest Rate Spread (Interest Earning Ratio-Interest Expense Ratio) The difference between the average yields a financial institution receives from loans and other interest-accruing activities and the average rate it pays on deposits and borrowings. The greater the spread, the more profitable the financial institution is likely to be; the lower the spread, the less profitable the institution is likely to be. Risk prevention Risk Prevention à ¯Ã¢â‚¬Å¡Ã‚ ·Capital to Risk Weighted Assets (CRAR) Total Capital/ (RWAs) This ratio is used to protect depositors and promote the stability and efficiency of financial systems around the world. à ¯Ã¢â‚¬Å¡Ã‚ ·Core CRAR = Tier I Capital / RWAs Tier one capital is that which can absorb losses without a bank being required to cease trading. This measures the capital standard of the bank à ¯Ã¢â‚¬Å¡Ã‚ ·Adjusted CRAR = (Total Capital Net NPAs)/(RWAs Net NPAs) This relates to the bankâ‚ ¬Ã¢â€ž ¢s ability to sustain the losses due to risk exposures is the bankâ‚ ¬Ã¢â€ž ¢s capital. The intermediation activity exposes the bank to a variety of risks. Staff productivity Staff Productivity à ¯Ã¢â‚¬Å¡Ã‚ ·Profit per employee (Net Profit/ No. of Employee) This helps to measure how productive the employees are in the bank by calculating profit generated by every employee. Higher the figure better for the company. à ¯Ã¢â‚¬Å¡Ã‚ ·Net Income per employee (Net Total Income/ Number of Employees) This also helps to measure income generated by every employee in the company Operational costs Overhead Expense à ¯Ã¢â‚¬Å¡Ã‚ · Overhead expense/total income The accurate accounting and allocation of over-head expenses are very important factors in calculating the true cost of the company Operating Expense Ratio à ¯Ã¢â‚¬Å¡Ã‚ · Operating Expense/ Net Income The Operating Expense Ratio is usually viewed as a measurement of management efficiency.   This is because management usually has greater control over operating expenses than they do over revenues. In addition to analyzing different performance between foreign-owned and domestic banks, this study further analyze whether entering of foreign banks helps to improve efficiency of domestic bank. This is done by (1) Structured interviews with managers of central bank and commercial banks. Specifically, the interview will provide detailed analysis on which factors do help to improve performance of domestic banking sector in Nepal; could foreign-owned banks influence performance of domestic banks; and which channels do foreign-owned banks influence domestic banks, and (2) by â‚ ¬Ã…“Granger causality testâ‚ ¬? between domestic bank performance and foreign bank performance. This will be done on profitability, staff productivity and operational costs. 1.5. Organization of the study There will be five chapters in the study. Chapter 1 provides introduction, objective, scope and limitation, and methodology of the study. Chapter 2 reviews relevant theoretical and empirical literature on foreign bank penetration and domestic bank performance in both developed and developing countries to lay the groundwork for developing analytical framework and methodology in examining the impacts of foreign bank penetration on domestic bank performance in Nepal. Chapter 3 examines the structure and development of financial sector in Nepal as well as financial policy over the past decades. The results of banking performance are shown in this chapter. Chapter 4 discusses the impacts of foreign banks to domestic banks, both qualitative and quantitative. Chapter 5 provides conclusion and policy inferences. Chapter 2 Literature Review This section reviews relevant theoretical and empirical literature on foreign bank penetration and domestic bank performance in both developed and developing countries. This is done in order to lay the groundwork for developing analytical framework and methodology in examining the impacts of foreign bank penetration on domestic bank performance in Nepal. Penetration of foreign bank can come in different forms, such as branch offices, subsidiaries, joint ventures, or strategic partnerships. Branch offices, for instance, are an integral part of the parent company, that is, they have no capital of their own. Subsidiaries, however, are their own corporate entities, which are fully owned by the parent company. Similarly, joint ventures are separate corporate entities owned jointly by more than one parent company. Finally, foreign banks may establish a strategic partnership by buying a majority stake of an already existing domestic bank. Weller Scher (1999) The main difference between the various operational forms of foreign banks is their regulatory treatment. The regulatory treatment of the banks differs amongst domestic banks, joint-venture banks and foreign owned banks. Although there are different forms of foreign bank penetration, foreign owned banks are defined as those in which foreign investors own more than 50% of the total equity. Okuda and Rungsomboon, (2004). Decree on Foreign Banks, Phillip Fox 2006, distinguished foreign banks as Foreign Bank Branches (FBB), Foreign Invested Banks (FIB) and Joint Venture Banks (JVB). FBB is a dependent subsidiary of a foreign bank, for which the foreign bank has provided written guarantee that it will be responsible for all obligations and undertakings under FBB. A 100% FIB is established as a separate legal entity with capital being contributed from only foreign entities. Amongst the foreign investors, there must be a â‚ ¬Ã…“parent bankâ‚ ¬? and it must hold more than 50% charter capital. A JVB is established as a separate legal entity, with capital being contributed from one or more foreign banks and domestic banks. Capital is not divided into shares. In JVBs, the capital contribution rate by the foreign bank(s) is capped at 50% of the capital of the bank. The regulations and supervision of financial sector in a host country are crucial in affecting the penetration of foreign banks. Over the past decade, most of the banks throughout the world have started standardizing their policies relating to financial sector according to Basel committee (Basel II Basel III)  [7]   Although Basel system has been introduced and regulations and supervision of banking sectors began to be standardized, regulations relating to competition within the banking sector, which influence the penetration of foreign bank and market structure of banking sector, vary significantly across countries and regions. According to Barth, Caprio and Levin (2001), there are three key aspects of the regulations relating to competition within the banking sector, namely 1) Limitations on Foreign Ownership of Domestic Banks determine (whether there are any limitations placed on the ownership of domestic banks by foreign banks); (2) Limitations on Foreign Bank Entry determine (whether there are any limitations placed on the ability of foreign banks to enter the domestic banking industry) and (3) Entry into Banking Requirement determine (whether there are specific legal submissions required to obtain a license to operate as a bank). The restrictions on overall bank activities and ownership vary from country to country. The research on Regulation and Supervision of Banks around the World by Barth, Caprio and Levine (2001) mentions that there are two measures of the size of a countryâ‚ ¬Ã¢â€ž ¢s banking industry. First measure is total bank assets as a percentage of GDP and the other is the number of banks per 100.000 people. . Both these measures show substantial variation across countries. Countries like Germany, Switzerland, Netherlands, and United Kingdom have very high total bank assets as a percentage of GDP whereas United States and Asian countries are much lower. However the number of banks per 100,000 people is not much different in the countries mentioned above. The table clearly shows that the countries in ASEAN region have higher restrictions on banking activities and ownership in comparison to countries like New Zealand and United States. The regulations are different in each country and do not match even if the countries are in the same region. But Professional supervision per bank is lower in developed countries like United States, New Zealand, United Kingdom whereas developing counties have higher no. of supervision per bank. According to the research the highest restrictions on overall bank activities and ownership are imposed by countries like Bhutan, Cambodia, China, Indonesia, Vietnam and lowest restrictions by New Zealand then Germany, Austria and United Kingdom. In countries like New Zealand and United states the government ownership of banks is zero percent whereas India, Bangladesh has very high percent of government-owned banks. Although the regulations on banking competition vary, over the last decades, restrictions on foreign bank penetration have been relaxed as part of financial reform and foreign bank penetration increased substantially in many countries. This could be because the host country expects the positive impacts of increased foreign bank penetration in the host countryâ‚ ¬Ã¢â€ž ¢s banking system. Trade agreements have also played a major role in liberalization of market entry for foreign banks as financial services are required for international trade, production and investments. Governments usually support flow of foreign investment and this has been evident especially after various financial crises. Many countries in Southeast Asia started liberalizing foreign investment after the Asian financial crisis. The Asian crisis appeared to have catalyzed the liberalization of FDI restrictions in the banking sector across several ASEAN countries. Chau H.B (2003) A number of empirical studies analyze the impacts of foreign bank entry on domestic financial sector in a host country. The impacts can be grouped into three aspects. Firstly, foreign banks promote efficiency (competition and new technology) in domestic financial sector. A larger foreign bank presence can improve the competitiveness of the banking sector. Greater competition is advantageous for many reasons: to enhance the efficiency of financial services; to stimulate innovation; and to contribute to stability. It can also widen access of qualified borrowers to financing, which may increase aggregate lending and so enhance growth. A competitive and well-organized banking system can also improve the effectiveness of monetary policy transmission by tightening the link between policy rates and deposit/lending rates. (BIS paper No. 23) Foreign banks also help in availability of funds and acquisition of consumer-marketing skills. Chau (2003) In addition, foreign bank entry introduces new technology; financial services and advanced management skills, which existing domestic banks lack. The new technology and skills introduced by foreign banks include new financial products, advanced IT technology, and sophisticated bank management techniques. These are expected to contribute to lower operational expenses, amplified profitability, and better bank risk management. Forced by market competition, domestic banks may emulate the new financial products and management skills. Okuda Rungsomboon (2004). The presence of foreign bank also improves the corporate governance structure of the domestic banks. This includes breaking down the family-controlled structure and improving the decision making process. Chau H.B (2003) Unite and Sullivan (2001) has found that increase in foreign bank entry narrows the interest rate spreads and also reduces operating expenses. Foreign banks induces domestic banks to be more efficient, the increased competition forces domestic banks to take in less creditworthy customers and foreign participation induces domestic banks to spend more on improving their operations. However, Okuda Rungsomboon (2004) found that the entry of foreign banks is expected to negatively affect the operations of domestic banks but overall performance is likely to progress in the long run. Secondly, the entry of foreign banks is associated with reallocation of loans. Findings suggest that foreign banks improves credit access for many credit-worthy firms but some firms with positive net present value without opaque information will have difficulty obtaining loans. More developed countries, such as the U.S., Japan, and those in the European community, argue that Less Developed countries should allow foreign banks to enter into their economies. By increasing competition, foreign bank entry may boost the supply of credit and improve efficiency. Gormley (2006) Foreign banks are comparatively less likely to lend to â‚ ¬Ã…“soft informationâ‚ ¬? firms, and more likely to lend to â‚ ¬Ã…“hard informationâ‚ ¬? firms. â‚ ¬Ã…“Soft informationâ‚ ¬? refers to information that cannot be easily publicly verified by a third party. â‚ ¬Ã…“Hard informationâ‚ ¬? on the other hand refers to credible and publicly verifiable information, such as a foreign firmâ‚ ¬Ã¢â€ž ¢s authentically audited balance sheets, or government guarantees. Mian(2003.) The loan portfolio of foreign banks consists of only credible clients which mean that the chances of default are very less. The domestic banks will be compelled to give loans to non-credible clients because the credible clients will be mostly handled by foreign banks. This will have greater chances of loan defaults for domestic banks. Thirdly, foreign banks are geographically spread relative to domestic banks; therefore they are less affected by adverse shocks in the domestic country. Both foreign and private domestic banks have similar low probabilities of being assisted by the government in times of difficulty but foreign banks are considerably more likely of being bailed out by their parent bank. For example, if the local subsidiary in a developing country of a foreign bank runs into trouble, it may get an injection of new capital from its parent bank to bail it out. This access to liquidity directs to a lesser deposit cost for foreign banks. Furthermore, foreign banks have access to advanced technology, outside resources and expertise which facilitates them in providing better service than the domestic banks. However, there might be some drawbacks that make the foreign banks perform worse than domestic banks in the host country. Firstly, a large foreign banking existence could mean that information available to host country supervisors can be reduced and the decision-making and risk management shifts to the parent bank. The delisting of the equity of local partner on the local exchange removes an important source of market intelligence for the foreign bank. In addition, if the integrated firmsâ‚ ¬Ã¢â€ž ¢ equities are delisted in the local market, host country controllers can also lose access to key foreign bank decision-makers. Secondly, a country might be more exposed to shocks due to foreign banks presence. External events which affect the parent bank will affect the branches or subsidiaries. The factors that determine exposure to such external shocks, whether it is greater with onshore foreign banking as compared to traditional cross-border bank lending, and the propositions for regulatory and supervisory policy also demand further investigation. Lastly Accounting Standards could also be a problem for foreign banks unlike the domestic banks which have clear set of accounting standards set within its organization. There is a need for transparent and reliable accounting and financial reporting but for foreign banks; usually parent banks and their foreign subsidiaries often have different accounting standards, which can lead to discrepant financial balances, even when they are based on the same financial information. This might lead to complexity in comparison between international financial statements which could raise doubt in the reliability of banks financial statements. Differences may occur in different tax treatment, deferred taxes, valuation and accounting of repos, amortization of goodwill, treatment of past due loans and from provision and inflationary accounting adjustments. Moreno and Villar (2005) Comparative Study of the Banks in Nepal Comparative Study of the Banks in Nepal A well-structured financial sector is of special importance for the economic growth in both developed and developing countries. The commercial banking sector should be well organized and efficient for the growth of an emerging economy. Commercial Banks which forms one of the backbones of the financial sector are the intermediary link in facilitating the flow of funds from the savers to investors. By providing a means of mobilizing domestic savings and proficiently channeling them into productive investments, they lower the cost of capital to investors and accelerate the economic growth of a nation. No underdeveloped country can well progress without setting up a sound system of commercial banking system.  [1]   Nepal is an agrarian based economy with a GDP of $ 33.26 billion  [5]  . Nepalese banking industry has considerable changes over past decades because of liberalization, deregulation, improving information technology and globalization. The financial sector liberalization resulted in the entry of new firms in the market, which also added more pressure on competitiveness of individual banks; deregulation widened the scope of activities and expanded the banking activities; advancement in technology resulted into new methods to perform banking activities. Furthermore, the banks, these days, are entering into non-banking markets while other financial institutions are entering into the banking markets that have conventionally been served by the banks. These changes have altered the structure and market behavior of Nepalese banking industry. Currently there are 26 commercial banks out of which 6 are joint venture banks, 63 development banks and 77 financial institutions in Nepal. At present there is only one international bank operating in Nepal which is Standard Chartered Bank Limited. It started operation in Nepal since 1987 as a joint-venture operation and today it is a part of Standard Chartered Group having an ownership of 75% in the company and 25% shares owned by the Nepalese public. Nepal after its commitment to the World Trade Organization (WTO) during its accession in 2004, has allowed foreign banks to make their foray in Nepal to do only wholesale banking  from Jan. 1, 2010. Initially before the agreement with WTO (GATS), the Central Bank regulation allowed foreign shareholders to acquire maximum of 51% shares. Later the regulation changed which allowed foreign ownership of 75% and the recent regulation of 2010 allows 100% foreign ownership (i.e. allows a local entity to be a branch of a foreign company) in the banking industry. Entering of foreign firms is likely to generate benefits to financial sector as well as the economy as a whole (Chau HB, 2003). The effects can be seen mainly through an increase in efficiency and technological advancements as mentioned above. Over the past decade, the Nepalese banking industry has been doing well and has a number of new firms entering into the market. However, there is only one foreign bank and 6 joint-venture banks in the banking sector, though the government has liberalized the financial sector and allowed foreign banks to have 100% foreign ownership. With limited number of foreign banks in Nepal, it is still unclear whether entering of foreign banks, including joint venture, helps to improve overall performance of banking sector as well as to spillover some benefit to domestic banks in Nepal. Objectives To answer the key question above, there are two objectives of the research paper: To measure and analyze the performance of three types of banks namely domestic bank, joint-venture bank, and foreign bank and to explain the variation in performances of these banks. To identify whether the entry of foreign banks, including joint venture, banks would be beneficial for domestic banks which still dominate the financial market in Nepal. 1.3. Scope and limitations of the Study This study will only focus on three types of banks, i.e. domestic bank, joint-venture bank, and foreign bank, and it will offer an insight on the advantages of foreign banks in Nepal. Furthermore it will provide the reasons pertaining to variations in performance of the banks. The main limitation in this study is that there is only one foreign bank in Nepal till date, so the interpretation of the performance of the foreign bank in Nepal could be restricted to some degree. 1.4. Research Methodology This section develops research methodology to reach the objectives of the study. The banking sector in Nepal will be divided into three groups, namely foreign owned banks; joint-venture banks, and domestic banks. For this research, foreign-owned banks will be classified as those which have started a branch or subsidiary in the host country where the share of foreign bank ranges from 51% to 100% while joint venture banks will be classified as those in which foreign investors own the total equity of 50% or less and domestics banks are those which are purely owned by the Nepalese. The foreign owned banks are separated from joint-venture banks in this study because these two types of banks tend to have different operational management, resulting in their different performance. The research methodology is composed of both quantitative and qualitative analysis. First, the qualitative approach is applied to examine the structure and development of financial sector in Nepal during 2000-2010. The financial policy, especially competition-restriction regulation in Nepalese banking sector is also reviewed, mainly through official documents from central bank and international organization. Then the quantitative approach is developed to measure the performance and efficiency of banking sectors in Nepal. This is done by conducting various financial indicators of three types of banks in Nepal namely foreign bank, joint venture banks and domestic banks. Comparison of the indicators among these three types of banks over the past decades will provide the clear analysis of different performance between foreign-owned and domestic banks. The indicators can be grouped into four aspects, namely profitability; operational costs; staff productivity; risk prevention. Profitability à ¯Ã¢â‚¬Å¡Ã‚ ·Profit Margin (Net Profit/Total Income) Profit margin is very useful when comparing  companies in similar industries. A higher profit margin indicates a more profitable company that  has better control over  its costs compared to  its competitors. Profit margin is  displayed as a percentage; a 20% profit margin, for example, means the company has a net income of $0.20 for each dollar of sales. Profitability à ¯Ã¢â‚¬Å¡Ã‚ · Return on Asset (Net Profit/Total asset) ROA figure gives investors an idea  of how effectively the company is converting the money  it has  to invest into net income. The higher the ROA number, the better, because the company is earning more money on less investment. For example, if one company has a net income of $1 million  and total  assets of $5 million, its ROA is 20%; however, if another company earns the same amount but has total assets of $10 million,  it has  an ROA of 10%. Based on this example, the first company  is better at converting its investment into profit. Profitability à ¯Ã¢â‚¬Å¡Ã‚ ·Ã‚  Return On Equity (Net Profit/Equity) The amount of net income  returned  as a percentage  of shareholders equity.  Return on equity  measures a corporations profitability  by revealing how much  profit a company generates  with the money shareholders have invested.  Ã‚  Higher The ROE better the company. Profitability à ¯Ã¢â‚¬Å¡Ã‚ · Interest Rate Spread (Interest Earning Ratio-Interest Expense Ratio) The difference between the average yields a financial institution receives from loans and other interest-accruing activities and the average rate it pays on deposits and borrowings. The greater the spread, the more profitable the financial institution is likely to be; the lower the spread, the less profitable the institution is likely to be. Risk prevention Risk Prevention à ¯Ã¢â‚¬Å¡Ã‚ ·Capital to Risk Weighted Assets (CRAR) Total Capital/ (RWAs) This ratio is used to protect depositors and promote the stability and efficiency of financial systems around the world. à ¯Ã¢â‚¬Å¡Ã‚ ·Core CRAR = Tier I Capital / RWAs Tier one capital is that which can absorb losses without a bank being required to cease trading. This measures the capital standard of the bank à ¯Ã¢â‚¬Å¡Ã‚ ·Adjusted CRAR = (Total Capital Net NPAs)/(RWAs Net NPAs) This relates to the bankâ‚ ¬Ã¢â€ž ¢s ability to sustain the losses due to risk exposures is the bankâ‚ ¬Ã¢â€ž ¢s capital. The intermediation activity exposes the bank to a variety of risks. Staff productivity Staff Productivity à ¯Ã¢â‚¬Å¡Ã‚ ·Profit per employee (Net Profit/ No. of Employee) This helps to measure how productive the employees are in the bank by calculating profit generated by every employee. Higher the figure better for the company. à ¯Ã¢â‚¬Å¡Ã‚ ·Net Income per employee (Net Total Income/ Number of Employees) This also helps to measure income generated by every employee in the company Operational costs Overhead Expense à ¯Ã¢â‚¬Å¡Ã‚ · Overhead expense/total income The accurate accounting and allocation of over-head expenses are very important factors in calculating the true cost of the company Operating Expense Ratio à ¯Ã¢â‚¬Å¡Ã‚ · Operating Expense/ Net Income The Operating Expense Ratio is usually viewed as a measurement of management efficiency.   This is because management usually has greater control over operating expenses than they do over revenues. In addition to analyzing different performance between foreign-owned and domestic banks, this study further analyze whether entering of foreign banks helps to improve efficiency of domestic bank. This is done by (1) Structured interviews with managers of central bank and commercial banks. Specifically, the interview will provide detailed analysis on which factors do help to improve performance of domestic banking sector in Nepal; could foreign-owned banks influence performance of domestic banks; and which channels do foreign-owned banks influence domestic banks, and (2) by â‚ ¬Ã…“Granger causality testâ‚ ¬? between domestic bank performance and foreign bank performance. This will be done on profitability, staff productivity and operational costs. 1.5. Organization of the study There will be five chapters in the study. Chapter 1 provides introduction, objective, scope and limitation, and methodology of the study. Chapter 2 reviews relevant theoretical and empirical literature on foreign bank penetration and domestic bank performance in both developed and developing countries to lay the groundwork for developing analytical framework and methodology in examining the impacts of foreign bank penetration on domestic bank performance in Nepal. Chapter 3 examines the structure and development of financial sector in Nepal as well as financial policy over the past decades. The results of banking performance are shown in this chapter. Chapter 4 discusses the impacts of foreign banks to domestic banks, both qualitative and quantitative. Chapter 5 provides conclusion and policy inferences. Chapter 2 Literature Review This section reviews relevant theoretical and empirical literature on foreign bank penetration and domestic bank performance in both developed and developing countries. This is done in order to lay the groundwork for developing analytical framework and methodology in examining the impacts of foreign bank penetration on domestic bank performance in Nepal. Penetration of foreign bank can come in different forms, such as branch offices, subsidiaries, joint ventures, or strategic partnerships. Branch offices, for instance, are an integral part of the parent company, that is, they have no capital of their own. Subsidiaries, however, are their own corporate entities, which are fully owned by the parent company. Similarly, joint ventures are separate corporate entities owned jointly by more than one parent company. Finally, foreign banks may establish a strategic partnership by buying a majority stake of an already existing domestic bank. Weller Scher (1999) The main difference between the various operational forms of foreign banks is their regulatory treatment. The regulatory treatment of the banks differs amongst domestic banks, joint-venture banks and foreign owned banks. Although there are different forms of foreign bank penetration, foreign owned banks are defined as those in which foreign investors own more than 50% of the total equity. Okuda and Rungsomboon, (2004). Decree on Foreign Banks, Phillip Fox 2006, distinguished foreign banks as Foreign Bank Branches (FBB), Foreign Invested Banks (FIB) and Joint Venture Banks (JVB). FBB is a dependent subsidiary of a foreign bank, for which the foreign bank has provided written guarantee that it will be responsible for all obligations and undertakings under FBB. A 100% FIB is established as a separate legal entity with capital being contributed from only foreign entities. Amongst the foreign investors, there must be a â‚ ¬Ã…“parent bankâ‚ ¬? and it must hold more than 50% charter capital. A JVB is established as a separate legal entity, with capital being contributed from one or more foreign banks and domestic banks. Capital is not divided into shares. In JVBs, the capital contribution rate by the foreign bank(s) is capped at 50% of the capital of the bank. The regulations and supervision of financial sector in a host country are crucial in affecting the penetration of foreign banks. Over the past decade, most of the banks throughout the world have started standardizing their policies relating to financial sector according to Basel committee (Basel II Basel III)  [7]   Although Basel system has been introduced and regulations and supervision of banking sectors began to be standardized, regulations relating to competition within the banking sector, which influence the penetration of foreign bank and market structure of banking sector, vary significantly across countries and regions. According to Barth, Caprio and Levin (2001), there are three key aspects of the regulations relating to competition within the banking sector, namely 1) Limitations on Foreign Ownership of Domestic Banks determine (whether there are any limitations placed on the ownership of domestic banks by foreign banks); (2) Limitations on Foreign Bank Entry determine (whether there are any limitations placed on the ability of foreign banks to enter the domestic banking industry) and (3) Entry into Banking Requirement determine (whether there are specific legal submissions required to obtain a license to operate as a bank). The restrictions on overall bank activities and ownership vary from country to country. The research on Regulation and Supervision of Banks around the World by Barth, Caprio and Levine (2001) mentions that there are two measures of the size of a countryâ‚ ¬Ã¢â€ž ¢s banking industry. First measure is total bank assets as a percentage of GDP and the other is the number of banks per 100.000 people. . Both these measures show substantial variation across countries. Countries like Germany, Switzerland, Netherlands, and United Kingdom have very high total bank assets as a percentage of GDP whereas United States and Asian countries are much lower. However the number of banks per 100,000 people is not much different in the countries mentioned above. The table clearly shows that the countries in ASEAN region have higher restrictions on banking activities and ownership in comparison to countries like New Zealand and United States. The regulations are different in each country and do not match even if the countries are in the same region. But Professional supervision per bank is lower in developed countries like United States, New Zealand, United Kingdom whereas developing counties have higher no. of supervision per bank. According to the research the highest restrictions on overall bank activities and ownership are imposed by countries like Bhutan, Cambodia, China, Indonesia, Vietnam and lowest restrictions by New Zealand then Germany, Austria and United Kingdom. In countries like New Zealand and United states the government ownership of banks is zero percent whereas India, Bangladesh has very high percent of government-owned banks. Although the regulations on banking competition vary, over the last decades, restrictions on foreign bank penetration have been relaxed as part of financial reform and foreign bank penetration increased substantially in many countries. This could be because the host country expects the positive impacts of increased foreign bank penetration in the host countryâ‚ ¬Ã¢â€ž ¢s banking system. Trade agreements have also played a major role in liberalization of market entry for foreign banks as financial services are required for international trade, production and investments. Governments usually support flow of foreign investment and this has been evident especially after various financial crises. Many countries in Southeast Asia started liberalizing foreign investment after the Asian financial crisis. The Asian crisis appeared to have catalyzed the liberalization of FDI restrictions in the banking sector across several ASEAN countries. Chau H.B (2003) A number of empirical studies analyze the impacts of foreign bank entry on domestic financial sector in a host country. The impacts can be grouped into three aspects. Firstly, foreign banks promote efficiency (competition and new technology) in domestic financial sector. A larger foreign bank presence can improve the competitiveness of the banking sector. Greater competition is advantageous for many reasons: to enhance the efficiency of financial services; to stimulate innovation; and to contribute to stability. It can also widen access of qualified borrowers to financing, which may increase aggregate lending and so enhance growth. A competitive and well-organized banking system can also improve the effectiveness of monetary policy transmission by tightening the link between policy rates and deposit/lending rates. (BIS paper No. 23) Foreign banks also help in availability of funds and acquisition of consumer-marketing skills. Chau (2003) In addition, foreign bank entry introduces new technology; financial services and advanced management skills, which existing domestic banks lack. The new technology and skills introduced by foreign banks include new financial products, advanced IT technology, and sophisticated bank management techniques. These are expected to contribute to lower operational expenses, amplified profitability, and better bank risk management. Forced by market competition, domestic banks may emulate the new financial products and management skills. Okuda Rungsomboon (2004). The presence of foreign bank also improves the corporate governance structure of the domestic banks. This includes breaking down the family-controlled structure and improving the decision making process. Chau H.B (2003) Unite and Sullivan (2001) has found that increase in foreign bank entry narrows the interest rate spreads and also reduces operating expenses. Foreign banks induces domestic banks to be more efficient, the increased competition forces domestic banks to take in less creditworthy customers and foreign participation induces domestic banks to spend more on improving their operations. However, Okuda Rungsomboon (2004) found that the entry of foreign banks is expected to negatively affect the operations of domestic banks but overall performance is likely to progress in the long run. Secondly, the entry of foreign banks is associated with reallocation of loans. Findings suggest that foreign banks improves credit access for many credit-worthy firms but some firms with positive net present value without opaque information will have difficulty obtaining loans. More developed countries, such as the U.S., Japan, and those in the European community, argue that Less Developed countries should allow foreign banks to enter into their economies. By increasing competition, foreign bank entry may boost the supply of credit and improve efficiency. Gormley (2006) Foreign banks are comparatively less likely to lend to â‚ ¬Ã…“soft informationâ‚ ¬? firms, and more likely to lend to â‚ ¬Ã…“hard informationâ‚ ¬? firms. â‚ ¬Ã…“Soft informationâ‚ ¬? refers to information that cannot be easily publicly verified by a third party. â‚ ¬Ã…“Hard informationâ‚ ¬? on the other hand refers to credible and publicly verifiable information, such as a foreign firmâ‚ ¬Ã¢â€ž ¢s authentically audited balance sheets, or government guarantees. Mian(2003.) The loan portfolio of foreign banks consists of only credible clients which mean that the chances of default are very less. The domestic banks will be compelled to give loans to non-credible clients because the credible clients will be mostly handled by foreign banks. This will have greater chances of loan defaults for domestic banks. Thirdly, foreign banks are geographically spread relative to domestic banks; therefore they are less affected by adverse shocks in the domestic country. Both foreign and private domestic banks have similar low probabilities of being assisted by the government in times of difficulty but foreign banks are considerably more likely of being bailed out by their parent bank. For example, if the local subsidiary in a developing country of a foreign bank runs into trouble, it may get an injection of new capital from its parent bank to bail it out. This access to liquidity directs to a lesser deposit cost for foreign banks. Furthermore, foreign banks have access to advanced technology, outside resources and expertise which facilitates them in providing better service than the domestic banks. However, there might be some drawbacks that make the foreign banks perform worse than domestic banks in the host country. Firstly, a large foreign banking existence could mean that information available to host country supervisors can be reduced and the decision-making and risk management shifts to the parent bank. The delisting of the equity of local partner on the local exchange removes an important source of market intelligence for the foreign bank. In addition, if the integrated firmsâ‚ ¬Ã¢â€ž ¢ equities are delisted in the local market, host country controllers can also lose access to key foreign bank decision-makers. Secondly, a country might be more exposed to shocks due to foreign banks presence. External events which affect the parent bank will affect the branches or subsidiaries. The factors that determine exposure to such external shocks, whether it is greater with onshore foreign banking as compared to traditional cross-border bank lending, and the propositions for regulatory and supervisory policy also demand further investigation. Lastly Accounting Standards could also be a problem for foreign banks unlike the domestic banks which have clear set of accounting standards set within its organization. There is a need for transparent and reliable accounting and financial reporting but for foreign banks; usually parent banks and their foreign subsidiaries often have different accounting standards, which can lead to discrepant financial balances, even when they are based on the same financial information. This might lead to complexity in comparison between international financial statements which could raise doubt in the reliability of banks financial statements. Differences may occur in different tax treatment, deferred taxes, valuation and accounting of repos, amortization of goodwill, treatment of past due loans and from provision and inflationary accounting adjustments. Moreno and Villar (2005)

Pete Rose :: essays research papers

Peter Edward Rose was born in Cincinnati in 1941. He said that when he was growing up he rooted for the Cincinnati Reds just like every other kid in the area. In the summertime of most of his childhood years he played baseball constantly. He also played in high school, however he thinks that he was a better football player than a baseball player in school. He said that he liked to play football more because many people would attend the games, and not many showed up for baseball. "You could throw a bomb into the stands at our (high school) baseball games, and you wouldn't kill anyone". If it wasn't for Pete's uncle, who was a scout for the Cincinnati Reds, he would never nave played baseball. His uncle saw him play in high school and signed him to a contract with the Reds farm system. Pete started out at the class "A" level. He rose up quickly making the starting roster for the Reds opening day team in the same year, 1963. On opening day Pete said he wasn't nervous at all until about 10 minutes before the game. It hit him that he was now starting for the Cincinnati Reds, when not more than a year ago he thought football was his life. He walked in his first at bat, on 4 straight pitches. He said it wasn't because of nerves though, he just didn't want to swing. He got his first hit in the majors three games later, against the Pittsburgh Pirates. 	Pete played with the Cincinnati Reds from 1963 to 1978, and then he signed with the Philadelphia Phillies. He played in Philly from 1979 to 1983, and then he went to the Montreal Expos for 1984. He stayed only one half year in Montreal, having a desire to retire in his hometown Cincinnati. He played his final two and a half years, 1984-1986, in Cincinnati, and then he retired. He then went on to become the Reds manager from 1987 to 1989. 	During his career Pete Rose was called "Charlie Hustle" because of the way that he played. He played a "blue-collar" game of baseball, running out everything, and diving headfirst into bases with regularity. Few players can or will ever match the passion that Pete Rose played with. Rose was the leadoff hitter for Cincinnati's "big red machine" which was a force in baseball in the 1970's.

Linking Brain and Behavior: Reflections on Neurodegenerative Diseases and Fetal Neural Transplantat :: Biology Essays Research Papers

Linking Brain and Behavior: Reflections on Neurodegenerative Diseases and Fetal Neural Transplantation Neurodegenerative diseases are caused by malfunctions within the motor sector of the nervous system. These malfunctions, which are caused by the presence or absence of hormones, are a direct result of neural cell deterioration within the brain. Thus, biological problems of the brain, or rather predicaments arising between cellular connections within the brain, and the treatment of such conditions, illustrate how the brain organizes movement and behavior (11). The brain is the body's communication headquarters. It obtains a myriad of information from various parts of the sensory system and processes this information in an organized fashion. It then relays sensory input to different parts of the motor system. Such messages from the brain dictate specific muscular and behavioral patterns. Thus, this neural system is highly depended on a cause and effect system, where the slightest offset to the assembly-line fashion of cellular interaction results in major behavioral abnormalities(11). Moreover, there are two particular areas of the brain that are specifically related to motor malfunctions: the substania nigra and the striatum (the caudate nucleus and the putamen). The cells of the nigra synapse with cells of the striatum, which serves as the controller of motor functions such as walking, balance, and muscular movement. Information from the nigra cells passes through the synapses with the aid of a specific hormone, dopamine, which is a signi ficant chemical transmitter in the brain. Because the existence of dopamine is essential to the function of the substania nigra, it is also essential for the various muscular activities controlled by the striatum, such as walking, balance, etc (9). Neurodegenerative diseases, like Parkinson's Disease and Huntington's disease, thus, illustrate two very different behavioral patterns that are subsequently caused by two opposite and extreme biological abnormalities, where the nigra-striatum neural communication assemblage is hampered. Parkinson's disease (PD) results from a depletion in the amount of dopamine produced by the brain. At the onset of the disease, dopamine-secreting cells of the substania nigra, either because of genetic factors or environmental toxins, experience mass cell death. Thus, the nigra cells are unable to form synapses through which they secrete and relay dopamine to the striatum in a neural circuit within the basal ganglia (11). The striatum is also a coordination center for chemical messengers. When there is a decrease in dopamine levels, the striatum experiences a chemical imbalance (2). Linking Brain and Behavior: Reflections on Neurodegenerative Diseases and Fetal Neural Transplantat :: Biology Essays Research Papers Linking Brain and Behavior: Reflections on Neurodegenerative Diseases and Fetal Neural Transplantation Neurodegenerative diseases are caused by malfunctions within the motor sector of the nervous system. These malfunctions, which are caused by the presence or absence of hormones, are a direct result of neural cell deterioration within the brain. Thus, biological problems of the brain, or rather predicaments arising between cellular connections within the brain, and the treatment of such conditions, illustrate how the brain organizes movement and behavior (11). The brain is the body's communication headquarters. It obtains a myriad of information from various parts of the sensory system and processes this information in an organized fashion. It then relays sensory input to different parts of the motor system. Such messages from the brain dictate specific muscular and behavioral patterns. Thus, this neural system is highly depended on a cause and effect system, where the slightest offset to the assembly-line fashion of cellular interaction results in major behavioral abnormalities(11). Moreover, there are two particular areas of the brain that are specifically related to motor malfunctions: the substania nigra and the striatum (the caudate nucleus and the putamen). The cells of the nigra synapse with cells of the striatum, which serves as the controller of motor functions such as walking, balance, and muscular movement. Information from the nigra cells passes through the synapses with the aid of a specific hormone, dopamine, which is a signi ficant chemical transmitter in the brain. Because the existence of dopamine is essential to the function of the substania nigra, it is also essential for the various muscular activities controlled by the striatum, such as walking, balance, etc (9). Neurodegenerative diseases, like Parkinson's Disease and Huntington's disease, thus, illustrate two very different behavioral patterns that are subsequently caused by two opposite and extreme biological abnormalities, where the nigra-striatum neural communication assemblage is hampered. Parkinson's disease (PD) results from a depletion in the amount of dopamine produced by the brain. At the onset of the disease, dopamine-secreting cells of the substania nigra, either because of genetic factors or environmental toxins, experience mass cell death. Thus, the nigra cells are unable to form synapses through which they secrete and relay dopamine to the striatum in a neural circuit within the basal ganglia (11). The striatum is also a coordination center for chemical messengers. When there is a decrease in dopamine levels, the striatum experiences a chemical imbalance (2).

Essay --

DESCRIBE THE RESPONSIBILITIES OF A SOLE TRADER. AS A SOLE TRADER, EXPLAIN THE KEY STEPS TO BE TAKEN WHEN SETTING UP AN INTERIOR DESIGN SERVICE. Sole Trader A sole trader is a self employed person running a business as an individual. As a sole trader you are responsible for: †¢ Completing a self assesment tax return every year. †¢ Any debts that your business incurs. †¢ Paying national insurance and income tax on any profit that your business makes. †¢ Keeping records of sales and expenses (bookkeeping). †¢ Putting your own name and/or business name on any official paperwork. †¢ Bills for stock and equipment for the business †¢ You must register for VAT if your business takings exceed  £79,000.00 a year. When setting up an interior design service as a sole trader the key steps to be taken are: †¢ To think about and decide what your personal and financial business aspirations are. †¢ Be prepared to do what it takes to get your business up and running , there will be long hours, financial outlay, and you should be able to handle rejection and negagtivity, when the going gets tough. †¢ Be realistic and understand the tasks involved in setting up and running your business. †¢ Create a realistic working business plan, this can be done with the help of a solicitor or accountant. Your business plan is not set in stone, infact it should be reviewed with the continued progression of your business. A business plan will map out the direction your business should take and by working through it should also hi-light any possible flaws in your business idea. Your business plan is also an essential tool if you are intending to borrow any money as any prospective lender will want to know what they are abou... ...uides Display books †¢ You will also need to budget for and make consumable purchases. The following list is a guide: Ink cartridges and paper for printer Business stationery and envelopes Pens and Pencils Eraser and putty rubber Scalpel blades Spray mount/glue Notebooks and pads Presentation materials (card etc) Staples and paperclips †¢ Set up trade accounts with relevant suppliers. †¢ Create a marketing plan to sell your products and services. †¢ Make up display books to take with you when you visit your client. This will be a way of displaying your skills and versatility. †¢ Spread the word, promote your business in everyway possible, tell all your friends, relatives, acquaintances, related businesses and sub contractors. BIBLIOGRAPHY Websites www.wikipedia.org www.bbc.co.uk www.gov.uk www.smarta.com Essay -- DESCRIBE THE RESPONSIBILITIES OF A SOLE TRADER. AS A SOLE TRADER, EXPLAIN THE KEY STEPS TO BE TAKEN WHEN SETTING UP AN INTERIOR DESIGN SERVICE. Sole Trader A sole trader is a self employed person running a business as an individual. As a sole trader you are responsible for: †¢ Completing a self assesment tax return every year. †¢ Any debts that your business incurs. †¢ Paying national insurance and income tax on any profit that your business makes. †¢ Keeping records of sales and expenses (bookkeeping). †¢ Putting your own name and/or business name on any official paperwork. †¢ Bills for stock and equipment for the business †¢ You must register for VAT if your business takings exceed  £79,000.00 a year. When setting up an interior design service as a sole trader the key steps to be taken are: †¢ To think about and decide what your personal and financial business aspirations are. †¢ Be prepared to do what it takes to get your business up and running , there will be long hours, financial outlay, and you should be able to handle rejection and negagtivity, when the going gets tough. †¢ Be realistic and understand the tasks involved in setting up and running your business. †¢ Create a realistic working business plan, this can be done with the help of a solicitor or accountant. Your business plan is not set in stone, infact it should be reviewed with the continued progression of your business. A business plan will map out the direction your business should take and by working through it should also hi-light any possible flaws in your business idea. Your business plan is also an essential tool if you are intending to borrow any money as any prospective lender will want to know what they are abou... ...uides Display books †¢ You will also need to budget for and make consumable purchases. The following list is a guide: Ink cartridges and paper for printer Business stationery and envelopes Pens and Pencils Eraser and putty rubber Scalpel blades Spray mount/glue Notebooks and pads Presentation materials (card etc) Staples and paperclips †¢ Set up trade accounts with relevant suppliers. †¢ Create a marketing plan to sell your products and services. †¢ Make up display books to take with you when you visit your client. This will be a way of displaying your skills and versatility. †¢ Spread the word, promote your business in everyway possible, tell all your friends, relatives, acquaintances, related businesses and sub contractors. BIBLIOGRAPHY Websites www.wikipedia.org www.bbc.co.uk www.gov.uk www.smarta.com

Commentary on the opening of Margaret Atwood’s “The Handmaid’s Tale” by Alexander von Ramm Essay

The opening of Margaret Atwood’s â€Å"The Handmaid’s Tale† deals with a woman who lives in a gym which has been converted to a kind of camp. By describing the gym she has a lot of flashbacks. In the build up to the story Margaret Atwood uses a lot of literary devices in order to achieve specific goals. The setting, the narrative voice, the structure of the opening passage and her style raise a lot of questions and . Furthermore the opening passage expresses a lot of ideas which might be central to the plot. Achieves a range of effects. Using a detailed setting the author manages to highlight that a lot of things in today’s society changed. The first person narrator describes the gym where she lives by elaborating on the former use of the single objects. (â€Å"a balcony ran around the room, for the spectators,†¦). The description all takes place in a imaginative episode of the past. By describing the perfume, the jewellery and the clothing of the girls she highlights the personal freedom in the former society. (†¦ I could smell, faintly chewing gum from the watching girls, †¦). Furthermore Margaret Atwood states that the blankets still say U.S. This is the last evidence for the big change in the society (and army-issue blankets, old ones that still said U.S.) The description of the former use of the object emphasizes the big change in the society very well. In the former US- society the gym was a place of fun. The games which have been played here express energy and the willingness to play. This play changed into a prison-like place. The reader is immediately pulled into the plot which takes place in a society which is totally different to the one we know. This makes the reader excited to read the complete book. Margaret Atwood employs a special narrative voice in order to express some central ideas of the plot. The whole opening passage is written in first person plural. This shows the shared perspective of the society group the first person narrator (â€Å"WE yearned for the future.†). Furthermore this expresses the sense of solidarity among the women. By describing the past in a sad voice the first person narrator is not happy with her actual life situation. In addition to that the fact that the whole opening section does not have any plot at all and that she concentrates her telling on the past before the big changes in the society expresses her feeling of being trapped. The employed narrative voice gives the reader a first view on the main ideas of the novel. In addition to that there a question raised. For example the first person voice raises the question: † What lead to the shared perspective of the women in the gymnasium?† Furthermore the author works with a well chosen structure again in order to highlight the changes in the society. By employing a binary structure she emphasizes the positive things of the past. She starts by describing the former use of the former use of the gymnasium in the whole first paragraph. The intensity and the positive voice in the first paragraph express her positive opinion about it. In addition to that her sentence in the first two paragraphs which deal with the past are good connected while her sentence in the other paragraphs where she deals with the present are not connected at all. These 3 paragraphs reflect her actual thoughts about her life and the society she lives in. Margaret Atwood expresses via her structure her first person narrators opinion about present and past. Furthermore she again highlights the changes in the society. By using good stylistic elements the author manages to emphasize her points even more. The employed positive imagery is always from the past. That highlights again the positive facts of the past. In addition to that her long and complex sentence structure expresses the first person narrators intelligence- Even though she might be part of the lowest stand in the society she is not stupid. All her stylistic elements are employed in order to emphasize her two points, the change in the society and that the pasts society was so much better than the society of today. By emphasizing her first person narrators intelligence she adds reliability to her story. Margaret Atwoods literary devices express a lot of ideas which might be part of the plot. Regarding her merging of tenses and the content of her opening passage it is quite apparent that the novel will be dealing with a patriarchal society. Furthermore, freedom and control will be part of the plot. In addition to that language and imagination as a tool for independence will be part of the plot as well. These topics were quite important in the realisatione of the book.