Changi Beach Essay Example

Changi Beach Essay Changi Beach is one of the longest natural beaches in the north-eastern part of Singapore. The northern part of the beach is extended as a spit, a landform of coastal deposition. Spits are accumulations of beach material which result from longshore drift. Longshore drift is a process which causes beach material to move in a down-drift direction, due to waves approaching the beach at an oblique angle. This causes the swash to carry material in the direction of longshore drift, the process continuing such that material is transported along the beach. In the case of the spit at Changi Beach, longshore drift occurs in the north-west direction (refer to figure 1 and 2). Figure 3 illustrates the oblique angle at which the waves approach the beach. This study aims to examine the development of the beach profile, with focus on the amount of beach material along the spit in the direction of longshore drift. While most studies would consider longshore drift along a beach, this study differs slightly as the beach face on the spit itself, as a landform of deposition, is being investigated. The gradient and length of the beach face can be hypothesised to increase in the direction of longshore drift, as the amount of the beach material contributes to a steeper and longer beach face. The increase of beach material along the beach can then be deduced using the gradient and length. According to Bird (2008) on beach budgets, conventional methodology can be used in this way to calculate differences in amount of beach sediment along the beach by looking at the cross sectional area of a beach profile. We will write a custom essay sample on Changi Beach specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Changi Beach specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Changi Beach specifically for you FOR ONLY $16.38 $13.9/page Hire Writer This case study investigates the extent at which the hypothesis that the amount of material increases in the direction of longshore drift, is applicable to this spit. There may also be interesting findings on the amount of material in the area of the spit facing the channel leading to Changi Creek Reservoir. Even though such an investigation of how amount of sediment increases in the direction of longshore drift is seemingly tautological, according to Schwartz (2005) on longshore sediment transport, the phenomenon is regarded as â€Å"almost impossible to discern directly†¦ and viewing the whole beach face does not provide any clues†¦ only when transport rate changes along the shore, because of a barrier such as groin, does the beach change in a manner that can readily be detected.† As such, since preliminary analysis on-site seems to support the hypothesis that beach material does in fact accumulate in the direction of longshore drift, not only can this research examine the relationship of this concept of increase of beach material in relation to the gradient and length of the beach face, but also bring attention to a possibly unique situation on this particular depositional landform. Methodology The gradient and length of the beach face was measured at several transects each 20 metres apart along the spit, from the area facing open waters, to the tip of the spit to the area facing the river. For the approximate location of these transects, refer to figure 5. The data was collected within five hours around the time of low tide. At every two metres from the edge of the berm crest until one meter above the low tide level, the gradient of the slope was measured using two ranging poles and a clinometer (refer to figure 4). This procedure did not take into account breaks of slopes, which in the case of the beach face here, was negligible. The average of the values measured was calculated, deliberately leaving the value to 1 decimal place to analyse small differences along the spit, as the length of measurable area is short in comparison to other longer stretches of beach, and thus the difference in gradient is small between transects. This value is then taken to represent the overall gradient of the beach transect. The length of the beach face in metres was measured using a measuring tape from the berm crest to approximately one metre above the low tide level. The value was rounded off to the nearest 1 decimal place. Results and analysis The gradients of transects each 20 metres apart are shown in figure 5. On the figure is also marked three areas on the beach, A to represent the area facing open water, B to represent the tip of the spit, and C to represent the area facing the channel. It can be seen that the gradient seems to increase generally in the direction of longshore, ignoring certain anomalies due to the small distance on which data is collected. It can also be observed that the part of the spit with the steepest gradient is at the curve of the spit facing the prevailing wind direction. This implies that longshore drift predominantly occurs at the stretch of beach facing the open sea. Refer to figure 6 for the lengths of the beach face taken to approximately a metre above the low tide level. It can be said that the increase in length along section A of the spit is comparatively more obvious than the increase in gradient angle, the values having fewer anomalies. It can be said generally that the length of the beach face can be seen as possibly more reliable a gauge of the direction of longshore drift than the beach gradient. Unlike the gradient of the beach, the longest beach faces can be found on the tip of the spit at section B. These two values of gradient and length of the beach face can be used to mathematically calculate the cross-sectional area of each transect. While the resultant values may not be completely accurate, and the base of the cross-section is more or less arbitrary, and follows the mark used for measuring the length, observations can be made based on the differences between the values. Representing the gradient of the slope as     and the length of the beach as   , the formula for calculating the cross sectional area is as follows (refer to figure 7): The formula     gives the vertical height, represented on figure 7 as   , and     gives the horizontal distance, represented as     The values were computed using MS Excel, refer to figure 8 for table. The values are represented on figure 9. It is by looking at the resultant values shown on figure 9 that the effect of longshore drift on the amount of sediment on the spit becomes immediately apparent. The individual values of gradient and length do not show as clearly the amount of sediment, as both depend on the deposition of material at different places on the beach face, i.e. generally a steep gradient is caused by more material further up the beach face, and a longer beach is caused by more material deposited lower down the beach. It is interesting to note how in certain transects, for example the sixth transect from the east in section A, an abnormally steeper gradient has a shorter beach face. Thus, the calculated cross-sectional area provides a good gauge to the gradual increase of beach material in the direction of longshore drift, rather than relying on the individual values for gradient and length. The amount of beach material peaks at the transect marked by a cross on figure 9, and starts to decrease at the tip of the spit. It can be deduced that material is transported along section A by the prevailing winds from the northeast to the tip of the spit facing the open sea. There is comparatively lesser beach material at section C of the spit. Facing a narrow channel which does not have much of an immediately observable current on its own, analysis can proceed with an assumption that the amount of material transported into the area by the channel further upstream is negligible. It can be said that the amount of beach material can be seen to be decreasing from section B to C. As longshore drift occurs primarily along the length of beach facing the open sea, only the curve of the spit nearer to section A receives the bulk of beach material. The tip of the spit at B seems to as a whole have more material than the other sections. The amount of beach material decreases along section C of the spit until the transect marked with a circle in figure 9. Following that, the presence of a manmade stone wall causes accumulation of sediment, thus both the gradient and length of the beach face increases (refer to figure 10). It is interesting to note that while this area is against the predominant direction of longshore drift, since longshore drift acts mainly on section A, the situation along section C is rather different. This channel of water can be characterised as mainly calm, as it does not receive the waves, situated away from the predominant directions of wind. Still, a small degree of longshore drift can be seen to occur, away from the assumed direction of longshore drift, which can now be concluded as applicable only in section A. Longshore drift at C occurs to a certain extent due to passing boats which create waves that approach the beach at many directions. A weak swash and backwash can be observed parallel to the beach when boats to not pass the channel. While the focus of most studies should be on natural waves, a certain degree of longshore drift does in fact occur at section C. In order to represent the actual situation at this section of the spit, human factors have to be taken into consideration. Refer to figure 11 and 12. Conclusion There are several limitations to this study. Firstly, as measurements to do with the length of the beach face was done as the tide was falling or rising, estimations had to be continually made for each transect as to how much the tide level had changed. Also, the lack of a long stretch of beach made it necessary to not disregard any small changes in beach gradient between transects, which would usually be considered negligible. Furthermore, the accuracy of the measurements may be hindered by a variety of factors such as human error when taking gradients, and measuring a transect that is not fully perpendicular to the berm crest. In this study, no concrete measurements were taken to form a complete picture of how the beach profile changes in the direction of longshore drift, and calculations were made only based on the beach face as a whole. Preliminary observation seems to suggest that the phenomenon of longshore drift has an effect on the location and length of the berm. Section A can be characterized by a marked, flat berm and a sudden slope at the storm beach, while the berm seems to be less obvious progressing in the direction of the tip of the spit; in section B the berm is steeper and the storm beach is longer (refer to figure 13 and 14). In fact, the lack of an actual berm in section C led to a small amount of confusion when taking the readings for the length of the beach face. Future research could consider the effect of longshore drift of the beach profile of the spit as a whole. It can also be said that the idea that both length and gradient of the beach increases in the direction of longshore drift is true, though to interpret it another way, it would be more of the case that, due to increase of material, the beach face is thus steeper and longer. In conclusion, though the effect of longshore drift on gradient and length is not always clear, but these factors, as well as the calculation of the cross sectional area based on the values; have been proven to be reliable in estimating the differences in amount of beach material. The hypothesis that beach material increase in the direction of longshore drift has been proven to occur on the coastal depositional feature of a spit. The amount of beach material increases along section A and accumulates at the tip of the spit. It is likely that with the continual process of longshore drifting, section A would continue to extend in the future. Further studies are required to fully understand whether the hypothesis of beach material increasing in the direction of longshore drift is in fact exclusive to spits, as highlighted in the introduction on the fact that change to the beach face in the direction of longshore drift is not normally observable. Possibly, this is a unique case where changes in the beach face are observable in the direction of longshore drift.

Character Sketch in Composition

Character Sketch in Composition In composition, a character sketch is a brief description in prose of a particular person or type of person. In writing one, you go into the characters manner, distinct characteristics, nature, and the way that person behaves him or herself. Its also called a profile or character analysis and doesnt necessarily have to be about a fictional character. How to Approach a Character Sketch Even though its an informative type of essay, a character sketch doesnt have to be dry and only descriptive. It can also impress or entertain the reader or praise the subject, notes author R.E. Myers. The facts, traits, idiosyncrasies, and accomplishments of the subject provide the fabric of the character sketch. Anecdotes and quotes are also helpful in portraying the subject. You can stress the subjects personality, appearance, character or accomplishments.  (Figures of Speech: A Study and Practice Guide. Teaching Learning Company, 2008) If analyzing a fictional character, you can also go into the persons conflicts, how the person changes, his or her attitude toward others, and role in the story. You can list the persons likes and dislikes and how you feel about the character. If the character is the narrator, you can discuss whether the person is an unreliable narrator. A character sketch can also be satiric, as in work by authors such as Evelyn Waugh (1903–1966) and Thomas Pynchon (1933–) or modern-day television sit-coms. As a composition, a satiric sketch would likely need to be written in the characters voice and point of view to work. Use of a Character Sketch Besides being an essay type that students write in composition classes, fiction authors can use character sketches in their prewriting or drafting stages of short stories or novels as a means to develop the people wholl inhabit the world theyre creating. Writers who plan series (or even those who just end up writing a sequel to a successful story) can find character sketches useful as a reference  for maintaining consistency of detail or voice, if the character ends up being a narrator in the subsequent work or has a particular vocal tic, slang vocabulary, jargon use, or accent. Often the act of taking on the characters voice in a sketch will assist the author in discovering aspects of the character and fleshing him or her out to be more realistic. Character sketches can also be a task to work on when stuck for a plot point, characters motivation to move the plot forward, or attitude/reaction toward a conflict or event. In nonfiction writing, character sketches can be useful for biographers or feature article writers as a prewriting tool and as descriptive material to mine for the finished work. Examples Annie Dillards Sketch of Her Childhood Friend Judy Schoyer My friend Judy Schoyer was a thin, messy, shy girl whose thick blond curls lapped over her glasses. Her cheeks, chin, nose, and blue eyes were round; the lenses and frames of her glasses were round, and so were her heavy curls. Her long spine was supple; her legs were long and thin so her knee socks fell down. She did not care if her knee socks fell down. When I first knew her, as my classmate at the Ellis School, she sometimes forgot to comb her hair. She was so shy she tended not to move her head, but only let her eyes rove about. If my mother addressed her, or a teacher, she held her long-legged posture lightly, alert, like a fawn ready to bolt but hoping its camouflage will work a little longer. (An American Childhood. Harper Row, 1987.) Bill Barichs Sketch of a Publican The publican, Peter Keith Page, lives with his family in a flat on the second floor. Page is a fiftyish man, slender and well-tailored, whose manner might be described as studiously charming. His mustache and hair are tinged with auburn, and this, along with a sharp nose and chin, makes him look a bit like a fox. He enjoys jokes, subtle conversations,  double entendres. When he takes one of his turns behind the bar, he works at a measured pace, often pausing to ask after his patrons health and well-being. (At the Fountain. In Traveling Light. Viking, 1984.) Sources David F. Venturo, The Satiric Character Sketch. In A Companion to Satire: Ancient and Modern, ed. by Ruben Quintero. Blackwell, 2007.

1)Danto's 'inferential bypass 2)susan sontag's regarding the pain of Essay

1)Danto's 'inferential bypass 2)susan sontag's regarding the pain of others - Essay Example Nonetheless, there were artists who changed art and art audiences both. One of these, according to Danto, is Bernini’s David. This changed the face of perceptual art and brought it into its own limitless sphere. Some aspects of this sculpture that were different were that this sculpture had movement, cues, and more emotional expression. Now when Danto talks of inferential bypass, this contrast to his opinion of limited art eras which he talks about in â€Å"The End of Art.† Taking Bernini’s David, he becomes an example of technology assisted art. Here art has more representational power which is not just pictorial. Danto’s notions of technology connecting art and audiences, is what he means by inferential bypass and consequently he uses Bernini’s David to highlight this. Sontag herself suffered from extreme experiences such as war and the unlimited pain it brings with it, both for the suffering and for the ones helplessly watching. Perhaps what Sontag meant was that it felt like a movie, in the sense that there is so much action and subsequently so many interpretive meanings to be derived from it. The photographs in questions show what actually happens in a war. The human aspect of it; pain, bleeding, wound and amputated bodies. This is not usually emphasized in photographs and remains an elusive aspect of many people around the world who have been lucky enough to never experience war. Photographs should be actual evidence of war and war happenings. They need to present the true yet hurtful aspect of it. Only when it captures what is true is photography actually authentic. Sontag’s though present an interesting question, do photographs tell the truth and present the entire picture? This is because when the photographs were taken different images conveyed different ideas. All photos were different in their feel, concept, idea and angles. Sontag’s points out that even in a war when photography is involved, there need to be a number of

Econometric Project for final year undergraduate student Essay

Econometric Project for final year undergraduate student - Essay Example exports – imports as the within subject factors. Further, simple regression models of the nature; GDP = ÃŽ ²0 + ÃŽ ²1Xi (where Xis where the within subject factors). From the analyzed results, the variables real consumption expenditures, real gross private domestic investment, real government expenditures, real net taxes, and real net exports i.e. exports – imports were found to be statistically significant at 5% level of significance while the variable real personal disposable income was found not to be significant. The success of this paper was immensely contributed to by many people. In particular, I would like to thank my lecturer Mr.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦., for his/her guidance and un-questionable advice without which it would have been difficulty to realize the objective of the paper†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Finally, I would like to thank my family for their understanding and support in the entire period. According to Amadeo, K. (2009), GDP stands for the total amount of goods and services a country produces while growth rate is the rate with which the GDP changes over years. A countries GDP growth is determined by the many factors which include political factors, environmental factors, level of investments and level of consumptions among many other factors. To Amadeo, a country’s GDP growth rate is often driven by the level of retail expenditures, level of government spending, what the country exports and imports. To him, more imports mean a negative GDP growth. Wynne, M. A. (1992) supports the assertion made by Amadeo arguing that the most crucial indicator of economic growth is the GDP growth. According to him, GDP growth signifies business well-being, more jobs for the un-employed and more gains in personal income growth. On the other hand, negative GDP growth affects consumer and business confidence resulting to businesses holding both

Ryle on Monism Essay Example | Topics and Well Written Essays - 250 words

Ryle on Monism - Essay Example The body has physical existence and consists of matter. Evidences adduced by Freud suggest that some of the thoughts of a person differ from the thoughts which he really acknowledges. However, the common understanding is that a person is aware of his own thoughts. Regarding others, a person can only make inferences from the observed behaviour of the other person. But Ryle argues that this common sense understanding based on Descartes’ theory is unsound and conflict with whole body of knowledge that we know about mind. According to Ryle, the source of such double life theory is because of category mistakes. It is like somebody asking where the university is after seeing, various departments, libraries and research facilities. The university is in fact just the way everything is organised. The same is the mistake when a child after witnessing the march past of batteries, squadrons, etc .asks when the division is going to appear. He must be explained that battalions, batteries an d squadrons constitute a division. Descartes regards human body as a complex organised unit and mind as just another complex unit. Like body, minds are also things. Mental processes are causes and effects. The mind governs the bodily engine although nothing is known of how it governs the bodily engine. Ryle points out that such explanation given by Decartes rests on a batch of category mistakes.

Structure of the Balance Sheet of Islamic Banks

Structure of the Balance Sheet of Islamic Banks INTRODUCTION Structure of the Balance Sheet of Islamic Banks Liquidity is an important characteristic of banks. By their very nature, banks transform the term of their liabilities to have different maturities on the asset side of the balance sheet. At the same time, banks must be able to meet their commitments such as deposits at the point at which they become due. Thus, liquidity management lies at the heart of confidence in the banking operation. Customers place their deposits with a bank, confident they can withdraw the deposit when they wish. If the ability of the bank to pay out on demand is questioned, all its business may be lost overnight. The importance of liquidity transcends the individual institution, since a liquidity shortfall at a single institution may invoke systemic repercussion causing harm to the whole financial stability of a country. Therefore it is important for banks to have adequate liquidity potential when it can obtain sufficient funds promptly and at a reasonable cost. For Islamic banks, liquidity risk is a signific ant risk owing to the limited availability of Shariah-compatible money market instruments and Lender-Of-Last-Resort (LOLR) facilities. Hence, the recent introduction of commodity murabahah instrument based on tawarruq concept by Central Bank of Malaysia is deemed as an innovative approach to liquidity management. It certainly adds to the list of instruments for Islamic banks to manage their liquidity more effectively and efficiently. This paper reviews the structure and mechanism of commodity murabahah particularly for liquidity management purpose. As will be evident in this paper, this instrument has its own advantage which appeals to certain practitioners who were previously uncomfortable with `inah-based instruments (www.acrobatplanet.com). Liquidity management lies at the heart of confidence in the banking operation. Customers place their deposits with a bank, confident they can withdraw the deposit when they wish. If the ability of the bank to pay out on demand is questioned, all its business may be lost overnight. In general terms, liquidity refers broadly to the ability to trade instruments quickly at prices that are reasonable in light of the underlying demand/supply conditions through the depth, breadth and resilience of the market at the lowest possible execution cost (Pervez, 2000). A perfectly liquid asset is defined as one whose full present value can be realized, i.e. turned into purchasing power over goods and services, immediately (Tobin, 1987). Cash is perfectly liquid, and so for practical purposes are demand deposits, and other deposits transferable to third parties by cheque or wire, and investments in short term liquid government securities (Abdul-Rahman, 1999). The importance of liquidity transcends t he individual institution, since a liquidity shortfall at a single institution may invoke systemic repercussion causing harm to the whole financial stability of a country. Therefore it is important for banks to have adequate liquidity potential when it can obtain sufficient funds promptly and at a reasonable cost (Heffernan, 1996). The concern over liquidity management is also relevant to Islamic bank that holds illiquid assets while its liabilities are liquid, and holds assets unpredictable in value while guaranteeing the value of its liabilities. Thus, since Islamic banks follow the same structure and characteristics of a commercial banks balance sheet, they are not immune from liquidity risk. The potential mismatch between deposits and investment financing exposes Islamic banks to liquidity problems. On the other hand, if the banks maintain too much liquidity to avoid getting into the liquidity problems may in turn hurt its profitability, therefore creating a right balance between the two objectives of safety (www.acrobatplanet.com). Off-balance-sheet financing Also called synthetic leases, this is where a company uses rules from different systems, such as financial and tax, to account for an asset in different ways. For example, I lease a computer from company A. Because I dont own the computer (and I am assuming this is not a capital lease), I get to take the rent expense (for the lease) as a deduction on the books, but I dont have to account for the asset or the debt, therefore it is not on the balance sheet. This is attractive because it creates no debt on the companys books. It is often done through a SPE (Special Purpose Entity). Though lucrative, it has contributed to the demise of companies such as Enron. The lessor (company A) maintains the asset on their books and, if they financed it from another company (company B), the debt as well. Credit card issuers, mortgage companies and various other entities also use a type of off-balance-sheet financing known as asset backed securitization (ABS). The ABS process effectively allows a company to sell a portion of the loans (receivables assets) to investors, effectively removing the assets from their balance sheets (allowing a lower level of reserves, and, therefore capital) while managing the servicing of the debt (http://wiki.answers.com). AIMS AND OBJECTIVES OF THE STUDY To study the structure of the balance sheet of Islamic banks To study the On Balance Sheet Financing as compared to Off Balance financing. Critical appraisal of the structure of the Balance Sheet of Islamic Banks. BACKGROUND AND ANALYSIS Risk management and liquidity are of crucial importance in the overall banking environment, and they have clear relevance also to the specific environment of Islamic banking. In itself, Islamic banking is of growing significance. Regulators have their own particular perspective on these issues. As a regulator based in London the Financial Statement Analysis (FSA) should focus on the following: The importance of London as a centre of Islamic financing. The overall role of the FSA as a regulator why sound regulation is of critical importance in any financial marketplace, how it can assist in facilitating competition and innovation. Risk management issues in banking: a summary of the key elements involved. Risk management and liquidity issues as applied to Islamic banking. The perspective of the regulator, and why the UK operates a single regulatory framework for all firms. The importance of London as a centre of Islamic financing London is clearly one of the pre eminent centres of Islamic finance, for two main reasons. These are the presence of sizeable Muslim community in the UK; and the importance of London as a financial centre with the expertise to develop new and innovative products. The FSA as Regulator welcomes the development of Islamic finance, and would be happy to see this grow further. Other important centres include Bahrain and Malaysia (www.financeinislam.com). London plays a role in four areas of significance in Islamic banking: Trade assets such as murabaha, istisnaa, and bai-al-salam. The market is probably worth US$ 10 billion in the UK. Equipment leasing asset and partner selection, operating leases and finance leases Real estate where investors are looking for rental and capital benefits. Investment routes include fund management, club transactions, leverage funding, and asset analysis, corporate structuring and tax planning. Packaging and delivering assets engineering solutions. This includes a growing market in securitizations of pools of Shariah compliant assets. The role of the FSA as a regulator The Government has set the FSA four objectives: Market confidence Public awareness of the financial system Consumer protection Reducing financial crime The new FSMA will bring in eleven principles for the handling of business, which set out at a high level how we expect a firm and its management to conduct themselves. In terms of minimum criteria, the FSA has to be satisfied that institutions have adequate capital, adequate liquidity and adequate control over large exposures. Banks of what ever origin must be prudently run and that their management must be fit and proper for the task. Satisfactory risk management, a realistic business plan, and adequate systems and controls need to be clearly demonstrated. The FSA must be satisfied also that each institution is subject to effective consolidated supervision i.e., that one supervisory authority takes prime responsibility for supervising the bank or banking group as a whole (www.financeinislam.com). RISKS, PROBLEMS AND CHALLENGES Risk management issues in Islamic banking Senior management in any business must be able to provide effective risk management. The consequences of failure to do so are dire, for example, the collapse of Barings where proper controls and monitoring were not effectively in place: Regulators need to be sure that such risks are managed so as to prevent a worst case scenario such as the systemic collapse of a whole banking system. Critical issues for Islamic banks are the reputational risks and legal risks of non-compliance from Shariah board requirements and/or from engaging in any activities that were not perceived as properly Islamic by the marketplace. The maintenance of trust amongst Islamic market participants is crucial (www.financeinislam.com). Credit risk This is the risk that customers default and cannot service their debts. Banks can also suffer from the excessive concentration of exposures to particular customers, industries or countries. Asset quality should be closely monitored using appropriate management information and systems support. Islamic banks run an asset book, just as conventional banks do, so the same disciplines must apply. Liquidity risk Banks face collapse or severe trading difficulties when they are unable to meet their liabilities. For example, many Japanese institutions operating in London in the late l990s were hit when the Japanese premium increased their funding costs and eroded their liquidity. This did not mean, however, that they became unable to meet their liabilities. For the FSA, liquidity is a key concern. The dilemma for the Islamic sector is that liquidity from the Gulf is currently very substantial, but there is the need to seek out appropriate outlets for it. There is not a clearly defined lender of last resort for Islamic banks that might suffer liquidity problems, although support could probably be found from with in the overall pool of liquidity. Interest rate risk The risk of declines in earnings due to the movement of interest rates, most of the balance sheet items of banks generate revenues and costs that are indexed to interest rates. A key aspect of interest rate risk is also the possible mismatches that can arise between fixed and floating rates. In the Islamic banking context, interest rates per se are not a factor. However, commissions generated on Islamic transactions could also be vulnerable to market movements. Market risk The risk of adverse deviations of the mark-to-market value of the trading portfolio during the period required to liquidate the transactions. Islamic financial institutions take up risk sharing funds, whereas conventional banks take capital certain deposits where repayment must be made. There is the implicit requirement for both parties to a given transaction to share in the loss as well as the profit. Foreign exchange risk The currency risk of suffering losses due to changes in exchange rates. This principle applies equally to Islamic banks. Letter of credit and trade finance for example, a significant proportion of which is denominated in US Dollars, often pose an exchange risk. Currency transaction and translation Factors must be taken into account. Solvency risk The risk that financial institutions will be unable to hold sufficient capital resources to cover their different risks, regulators need to decide what amount is held, supervise, in order to maintain an appropriate level of solvency. Islamic banks need to be clear about the status of their deposits or liabilities. Any capital-certain transactions generate more solvency risk than risk-sharing with investors. Operational risk There is no precise definition, but we view operational risk as being the risk that arises from human error and/or deficiencies in information systems or controls, resulting in direct or indirect loss. In the Islamic banking context, operational risks can impact just as much as in conventional banking, with the additional element of possible operational defects causing failure to comply with the Shariah (www.financeinislam.com). FINDINGS Risk management and liquidity issues as applied to Islamic banking This is a very important area and a number of key regulatory issues are under review. For example, whether liquidity requirements should apply to all on-balance sheet funds, risk sharing as well as capital certain; and how liquidity should be managed for funds, which are held off balance sheet. The basic issue, however, as for any bank is how easily and quickly, and with what penalty, assets can be turned into cash. The establishment of a genuine inter-bank market or markets would be a significant step towards providing Islamic banks with the ability to maintain adequate liquidity without holding excessive amounts of very short-term assets. For example, it was very interesting to note that the Bahrain Monetary Authority (BMA) announced the first issue of its Islamically-structured bonds the Sukuk al-Salaam worth US$ 25mn. ABC Clearing Company BC and ABC Islamic Bank have been active in offering overnight investment opportunities for Islamic funds for a number of years. BNP Paribas and Kuwait Finance House signed a memorandum of understanding for the creation of a US$ 2bn Islamic money market fund (IMMF). Bank of America, Deutsche Bank, and ABN AMRO also plan to launch such instruments. Malaysia has also been developing an Islamic inter bank market. These developments offer potential flexibility to Islamic banks. UK practice is such that the Financial Statement Analysis (FSA) has scope to take account of such developments when agreeing liquidity guidelines with banks (www.financeinislam.com). CONCLUSION There are two different categories of commercial financing from an accounting perspective: on-balance-sheet financing and off-balance-sheet financing. Understanding the difference can be critical to obtaining the right type of commercial financing for your company. Put simply, on-balance-sheet financing is commercial financing in which capital expenditures appear as a liability on a companys balance sheet. Commercial loans are the most common example: Typically, a company will leverage an asset (such as accounts receivable) in order to borrow money from a bank, thus creating a liability (i.e., the outstanding loan) that must be reported as such on the balance sheet. With off-balance-sheet financing, however, liabilities do not have to be reported because no debt or equity is created. The most common form of off-balance-sheet financing is an operating lease, in which the company makes a small down payment upfront and then monthly lease payments. When the lease term is up, the company can usually buy the asset for a minimal amount (often just one dollar). The key difference is that with an operating lease, the asset stays on the lessors balance sheet. The lessee only reports the expense associated with the use of the asset (i.e., the rental payments), not the cost of the asset itself (www.evancarmichael.com). Why Does It Matter? This might sound like technical accounting-speak that only a CPA could appreciate. In the continuing tight credit environment, however, off-balance-sheet financing can offer significant benefits to any size company, from large multi-nationals to mom-and-pops. These benefits arise from the fact that off-balance-sheet financing creates liquidity for a business while avoiding leverage, thus improving the overall financial picture of the company. This can help companies keep their debt-to-equity ratio low: If a company is already leveraged, additional debt might trip a covenant to an existing loan. The trade-off is that off-balance-sheet financing is usually more expensive than traditional on-balance-sheet loans. Business owners should work closely with their CPAs to determine whether the benefits of off-balance-sheet financing outweigh the costs in their specific situation. Other Types of Off-Balance-Sheet Financing An increasingly popular type of off-balance-sheet financing today is whats known as a sale/leaseback. Here, a business sells property it owns and then immediately leases it back from the new owner. It can be used with virtually any type of fixed asset, including commercial real estate, equipment and commercial vehicles and aircraft, to name a few. A sale/leaseback can increase a companys financial flexibility and may provide a large lump sum of cash by freeing up the equity in the asset. This cash can then be poured back into the business to support growth, pay down debt, acquire another business, or meet working capital needs. Factoring is another type of off-balance-sheet financing. Here, a business sells its outstanding accounts receivable to a commercial finance company, or factor. Typically, the factor will advance the business between 70 and 90 percent of the value of the receivable at the time of purchase; the balance, less the factoring fee, is released when the invoice is collected. Like with an operating lease, no debt is created with factoring, thus enabling companies to create liquidity while avoiding additional leverage. The same kinds of off-balance-sheet benefits occur in both factoring arrangements and operating leases. Keep in mind that strict accounting rules must be followed when it comes to properly distinguishing between on-balance-sheet and off-balance-sheet financing, so you should work closely with your CPA in this regard. But with the continued uncertainty surrounding the economy and credit markets, its worth looking into the potential benefits of off-balance-sheet financing for your company (www.evancarmichael.com). The perspective of the Regulator The fundamental stance of the regulator is that the same principles in the handling of risk should apply for Islamic as for non-Islamic banks and financial entities. There has to be a level playing field. For the regulator, risk management in the Islamic context is becoming easier to understand as the following develop: A set of common international equivalent accounting standards. The AAOIFI is a doing a lot of good work in this area but we need to see more harmonization. Greater standardization of products. A clear role for the Shariah Board. For example, if there were to be one Board per country it should assist in giving consistency of interpretation of the Shariah. The FSA has had no applications for authorization from purely Islamic banks. If an application were to be made, it would be considered against our minimum criteria and principles for business. For us, an important aspect of any application would be the effectiveness of the applicants risk management systems and controls (www.financeinislam.com).

Frost Essay -- essays research papers

Explication of â€Å"The Road Not Taken†   Ã‚  Ã‚  Ã‚  Ã‚  Robert Frost, a poet from the early Twentieth Century, is well known not only for his elegant style, but for his use of great symbolism throughout his works. In â€Å"The Road Not Taken†, he depicted his theme and meaning through a four stanza poem which consisted of a set rhyme scheme (A, B, A, A, B). This poem has left its readers with many different interpretations. It is one’s past, present, and the attitude with which he looks upon his future that determines the shade of the light that he will see the poem in. In any case, however, this poem clearly demonstrates Frost’s belief that it is the road that one chooses that makes him the man who he is.   Ã‚  Ã‚  Ã‚  Ã‚  In the first stanza, the narrator says, â€Å"And sorry I could not travel both...† This quote is plainly explaining how difficult is it to make a decision because it is impossible not to wonder about the opportunity cost; what the decision maker will miss out on. There is a strong sense of regret before the choice is even made and it lies in the knowledge that in one lifetime, it is impossible to travel down every path. In an attempt to make a decision, the traveler â€Å"looks down one as far as I could†. The road that will be chosen leads to the unknown, as does any choice in life. As much as he may strain his eyes to see as far the road stretches, eventually it surpasses his vision and he can never see where it is going to lead. It is the way...