Performance between Islamic bank performance and commercial banks - Free Essay Example

Sample details Pages: 5 Words: 1522 Downloads: 5 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? Banks are a one of vital institution in the development of an economy (Jairus 2007), since they are the key drivers of the economy in terms of ensuring that the financial system is running and there is money in circulation (Ayub 2007). From the primitive set-up, that was banks in the past, to the present set up of the same, banks have continued to demonstrate their pivotal role in ensuring that businesses are conducted through the provision of credits, savings facilities, safe holdings, intermediary in local and international transactions and even advisory roles (Mahlknecht, 2009). Some of the best known banks in the world like Barclays and HSBC have been in operations for many years (Rahman 2010) and are hence shaping the way in which business is conducted, by shown the best practices in the banking sector. Unlike the other sectors of the economy, banks operate on two fundamental different rules, first, banks hold money and monetary instruments and they trade on these as opposed to the other businesses which operate on other forms of goods and services against money, secondly, banks mainly operate in liabilities and not assets and their strength is indirectly gauged by this (Jairus 2007), for instance, banks take up deposits from investors and account holders (this is a liability that the banks undertake to keep other peoples money) and using this money, the banks lend to borrowers and other banks and charge interest on the same therefore, they create a financial system that is developed on the basis of liabilities (Akgunduz 2009). This mode of trading is what separates the banks from the other financial institutions and as such make the banks to be increasingly relied upon by other stakeholders in the business environment (Rahman 2010). The increased usage of money as opposed to the old aged barter system has also made the banks to be imported in all major activities of selling and buying of goods and services and in reality, riches and success are measured in terms of money (Iqbal , Llewellyn 2002, Timur 2005). As stated earlier, the normal or conventional banking system is based on the premise of interest charges that the banks have to levy in order to remain in trade, and therefore, different banks have in the recent past, made significant effort to tailor their products in such a way that the interests and other charges will be accumulated and contribute to their profits (Mahlknecht, 2009). This is not to say that interests alone make their profits, since, according to Ayub (2007), profits can also in increased by identifying the business units that require cuts and implementing these cuts. Now, the conventional way of trading as given above, is mainly based on the Western worlds model of banking which to some extent is hinged on Capitalism and has been called by (Akgunduz 2009) as a simple way to rip other off. This does not really fell well with certain ideological leanings and certainly not with th e Islamic ideology, which mainly advocates welfare and support to the have nots by the haves, and on this premise, the banks have a duty to provide to those who are lacking (Jaffer 2005). According to Islamic teachings the Riba and usury or interest is not to be levied and is prohibited in certain terms hence it is Haraam unfair or prohibited (Timur 2005). However, this concept seem to have started just in the near past, since according to Lewis , Algaoud (2001) , a look at the works of Qureshi Annwar (1946), Naiem Siddiqi (1948) and Mahmud Ahmad (1952) show a tendency to profit sharing and not interest charges, so the company is expected not to charge interest as a way of sharing its profits (Schoon 2009). The first Islamic bank was later on formed in Egypt, but this was held secret for fear of being seen as an Islamic fundamental group and this was in 1975 (Rahman 2010). At present Islamic banking institution are worth about $400 billion and Saudi Arabia has world known ban ks like the Al Rajhi, and the bank Mellat. Being an Islamic nation as most of the MENA region (Middle East and North Africa) , it could only follow that it is a good idea to ensure that this banking concept develops in this region to serve those clients in a way that responds to their religious needs (Hassan, Lewis, 2007). This is not to say that Islamic banks can run in isolation, especially in the wake of international business and with the recent accession of KSA to the World Trade Organisation (WTO), thereby making business between KSA and the world to increase (Rosly, 2006), besides, KSA is the largest producer of crude oil (Timur 2005), which is a product in demand all over the world and in this inter-national trade, banks must act as underwriters or even agents to the buyers and sellers (Hassan , Lewis 2007). Also, according to (Jaffer 2005), and as seen earlier, Islamic banks have been developed along the principles of conventional banks with a few but important differ ences. From an investors point of view, the choice of investing in an Islamic bank or a conventional commercial bank in KSA is therefore an issue that requires careful thought (Timur 2005), this is because, while an assumption can be made that being an Islamic bank in an Islamic nation, there are obvious advantages to the investor (Pock 2007), this assumption may be disputed, since, in the same environment, the conventional commercial banks may ensure that they counter the advantages of Islamic banks with tailor made products that respond to the clients needs and therefore, they may be more beneficial to the clients (Lewis , Algaoud 2001). It also depends on what the investor is looking for, because, individual investors like the corporate investors have varied investment objectives, and while it can be said that in general, corporate investors may be patient and hence looking for long-term investment, individual investors may need quick benefits (Mahlknecht, 2009). Again, suppos e the investors are considering monetary benefits, which is often the case for many (Khan 2010), what banking concept are they likely to invest in and at what investing limit (threshold or minimum investment) must they commit in order to achieve their objectives? (Iqbal , Llewellyn 2002). THE PROBLEM These are important questions that have driven the interest in conducting this study. The researcher wishes to find out what bank or banking concept is more likely to benefit investors. In this context, investors will be viewed as individual investors who have the power to save their money in the hope of achieving certain benefits in due time. According to (Akgunduz 2009), and also (Rosly, 2006), there is a need to find out what might motivate investors to consider investing in Islamic banks, even though, the concept of interest is forbidden and hence they are unlikely to earn any, or what might motivate them to invest in conventional commercial banks although there are charges and minimum amounts to be invested to realise some benefits. It is therefore important to ensure that a comparative analysis is conducted between Islamic and Conventional Commercial banks is undertaken with a view to fully establish the major differences in various operational aspects of these banks and also to evaluate what banking concept of the two would be most beneficial to the investors. Hypothesis: In this study, the research is based on the premise that conventional banks still provide the best option to investors compared with Islamic banks and that as time goes by and competition in the banking sector increases, there appears to be more differences between the operations of these banks as each bank seeks to provide more diverse products and services to their clients. The research sought to evaluate the following research questions; Are there fundamental differences between Conventional commercial and Islamic banks? What are they? What are the differences in operations of Islamic and Conventional commercial banks, in KSA? What are the monetary benefits to the investors in the Islamic and Conventional banks in KSA? What banking concept would you consider for the investor in KSA in terms the general benefits? The following objectives have been evaluated: Identifying the operational differences between Islamic and conventional banks in KSA. This involves an investigation into the functional areas of these banks as they seek to get and keep their clients including other functions that support business both locally and internationally. Discuss the performance between the Islamic and commercial banks in KSA: In this section, the financial ratios will be evaluated including liquidity, gearing and profitability ratios. Assessing the monetary benefits to the investors in investing in either Conventional or Islamic banks in the KSA. Assessing and recommending the best banking concept to the investor in terms of the long t erm, and short term benefits: In this section the research considered the issues of interest, duration, benefits of tailor made banking to the investors, other collateral benefits that say and account holder would be given, that non account holder would not have. The Scope: This research will mainly consider investment benefits while comparing the banking sector in KSA with relations to the banking conventions in the KSA. The focus will be on KSA, which has strong Islamic and Conventional banking sectors. CHAPTER 2 2.1 LITERATURE 2.2. METHODOLOGY CHAPTER 3 3.1 METHODOLOGY 3.2 CASES AND ANALYSIS CHAPTER 4 4,1 PROJECT MANAGEMENT METHODOLOGY CHAPTER 5 5.1 DISCUSSION 5.2 CONCLUSION CHAPTER 6 Don’t waste time! Our writers will create an original "Performance between Islamic bank performance and commercial banks" essay for you Create order

The Impacts Of Premarital Sex And Cohabitation On Marriage

Phat (Kevin) Phan English 1302 Professor Randall Watson December 8th, 2014 The Impacts of Premarital Sex and Cohabitation on Marriage Becoming popular from the 1950s until now, premarital sex and premarital cohabitation have been considered as the norms in the United States. While most people agree that premarital sex is one of the ways to find out whether the couple is perfect for each other, others incline its consequences. Because the United States is described as the Salad Bowl, in which numerous ethnicities, religions, and cultures are not assimilable, it exists some different perceptions about sex out of marriage. By reviewing the reasons and pointing the consequences of having sex and living together before marriage, it is obvious†¦show more content†¦Defending the judgment that premarital sex and cohabitation is acceptable and permissible, people who had sex before their marriage or just agree with it expound some reasons. First of all, living together and sex outside marriage have been increasing because of social pressure. In a community, a person who does not follow common norms is abnormal. Acc ording to the research in 2011, Mashau learned that a person would be seen as stupid, rural, and sophisticated without participating in premarital sex as his/her peers. It means that some people might neither agree nor disagree with premarital sex, yet they try to ‘simulate’ what most people do in order to be ‘normal’. Giving another reason to protect their opinion, people believe having sex and living together before marriage help them be ready for marriage. Marriage is the most important event in a person’s life; thus, everyone wants to find a fitting spouse with whom they are going to live in the rest of the life. They worried a wrong decision will destroy their marriage, even their life. The contribution of premarital sex and cohabitation is a suitable choice which not only helps the couples understand each other but also gets their relationship closer. The couples believe engaging in sex and living together before marriage are the processes whic h they are more likely experience the needs of marriage than the couples did not. As a result, the couples that think they

Africa During Colonialism Free Essays

Africa of course, would be colonized by the many Europeans. However, a lot of African groups/colonization would start too. They would start and older ones would be expanded. We will write a custom essay sample on Africa During Colonialism or any similar topic only for you Order Now The slave trade had decreased due to British pressures and so Africa started trading more of other items with the rest of the world. This same thing was happening in Asia and the Middle East too. In South Africa, the Zulu kingdom would be formed, and in Western Africa, an Islamic caliphate, Sotto Caliphate would be formed. Many of these civilizations were being formed by a bunch of African peoples around the continent. At first, In Southern Africa, there were the Unsung people, Just farmers and cattle herders that existed for a very long time. Soon, however, a drought would strike, hurting their agriculture. This caused the end of the Unsung people. A military genius and leader, Shake Zulu would take control and create a new civilization, the Zulu people, who, compared to all other tribes In Southern Africa, was the most powerful and formidable, because of its strict military drills and practice and they even used ox-hide shields. The Zulu warriors expanded their kingdom, by attacking many other tribes and Invading them, taking their cattle, children and women. Parts of the Zulu, they split off making their own military bands and they too did the same thing as the Zulu. Soon, this made so many new kingdoms going up all the way to Lake Victoria. As this increased, so did the number of refugees and terrified, depressed people from these To stop the Zulu tribe’s growth and power, two kingdoms formed, Swaziland to the north and Lesotho to the east, which was made up of many refugees who came to those mountains there. Both Lesotho and Swaziland exist today. Shake successfully made a national identity and a nation in just 10 years of rule. He took all the young people in the nation and split them into deferent groups, called regiments, based on age. These people of the regiment lived with each other and they all celebrated Shake. Etc. They celebrated his rule and they were all heavily disciplined. Cow herds were a measure of wealth in this kingdom. Meanwhile, in the Western Savannah of Africa, there was a big religious struggle. Islam was prevalent over there. However, that was only In the cities and trade areas, ND not in the rural areas. The rural areas still followed regular customs. At first, Islam allowed people to mix their older beliefs with Islam. Now however, Psalmists started denying this idea of allowing them to have their customs and wanted them to follow pure Islam. They made a â€Å"holy war†, called Jihad, which made Assaults take over many rural and other new lands where they enforced Islamic laws and spread the religion. These Islamic retorts first took place in the Hausa states to northern Nigeria. A leader in the Hausa states, Susann Dan Food, called a lot of the kings there, unbelievers of religion or Islam and led people away from god. He led a Jihad on the King of Gobi, overthrowing him. A lot o f Muslims Joined to gather to spread Islam and spread it all around Hausa. All this Islam would come together to make a caliph under the capital city of Sotto, called the Sotto Caliphate. The Sotto Caliphate became a center for teaching Islam and reform. It added many new centers, quickly, to teach Curtain and Islamic subjects to boys. Many people were attracted to it because of the Sotto library, which was pretty huge. Muslims ere allowed people to follow their own religion but had to pay a special tax. They were not allowed to do their tribal dances and rituals and any who opposed the spread of the Jihad were killed, slaved or converted. The Sotto caliphate sent off tons of slaves for the Trans-Atlantic slave trade, mainly women and children. Slaves mainly farmed, and so this allowed women to actually leave the home this time. Sotto not only sent a lot of slaves, but it also had a lot of slaves in itself too. In fact, it had more slaves than any other American commonly. Napoleon would come and fight in Egypt. This would last in Egypt as a great triumph for the Europeans and a great loss for the Egyptians. After Napoleon left Egypt from his losses, Muhammad All took rule. Muhammad All took rule of Egypt. He modernized and industrialized Egypt, making it follow a lot of the Western styles. He increased trade of Egypt. He brought a lot of education to Egyptians, and allowing them to replace the old aristocracy. He replaced all the European experts and sellers of products with Egyptians. However, one bad thing was, that he made a burden on the peasants to give military and labor service. The army and Egypt was making its own textiles, paper, weapons, military uniforms. Seeing this western movement, many groups in Egypt, of Islam mixed with this Western Culture. For example, European technical manuals were translated to Arabic. Small was the grandson of Muhammad All. He was more keen on westernizes than All. But his efforts, in the end, would Just create a bunch of Egyptian debt to French and British banks. At first, in his first 10 years of rule, it was all good with a lot of wealth thanks to increased trade, more exports, new irrigation annals, railroads 800 miles, postal service and Cairo. However, after the American Civil War, exports went down again and debt would be one of the reasons for French and British partial occupation of Egypt. Ethiopia was Christian for 1 500 years. They too were trying to modernize themselves. Ethiopians Emperor, Terrors II of Ethiopia was the one who first started Westernizes and ordered a lot of weapon purchases from Europe and also encouraged some local maturating. One time, they even made cannon that could shoot a half ton shell with the help of Protestant missionaries. However, they tried to get some more weapons by holding British officials hostage and demanding for weapons, but the British would end up actually invading Ethiopia. Terrors would commit suicide to prevent capture. Then the British would withdraw, and then King Haynes would take the throne. King Haynes took over a lot of the lost land of Ethiopia, except for one major land part, Shoo Kingdom, ruled by King Moonlike. The beginning events of Rupee’s scramble for Africa were when France took over Algeria. Algeria originally was a major supplier of olive oil and grain to France. They even gave them grain to Napoleon to take over Egypt. Now, France still owed them for this and several disputes took place. The new French government wanted to show nationalism with an easy overseas victory. However, the struggle for Algeria would go on for 18 years, even after French government would be overthrown again. Bad al- Qatar was an Algerian holy man who led them against France but he would die, weakening and nearly ending their 18 year struggle. However, conflict in the mountains would take place for 30 years. Settlers would then come in and kill off 140,000 people. How to cite Africa During Colonialism, Papers

British Airways Accounting Management - Free Samples & Answer

Question: Explain how management accounting can supply information to assist the management of an Airline company (for example Easyjet, Emirates airline, British Airways etc) of your choice. Answer: Background to the British Airways British Airways is one of the biggest commercial airlines globally. It is reflected as the countrywide carrier of the UK (United Kingdom)due to its enormous convoy, pair flights as well as term in uses. It is connected to more than 561terminuses and 160countries internationally, comprising USA, United Kingdom, Asia, Africa, UAE, etc.(Monti, 2007 ). It is also being premeditated like the frontrunner in the airlines business globally. It is recognized for its fineness, eminence, and amenities (either on the ground or in in-flight). Apart from the biggest global listed air company in The United Kingdom, British Airways presented numerous facilities and services to its clients to assure their suitability. The airline company is also being denationalized, and its shares are transacted on the stock-exchange of London. As past smidgen its roots again, British Airways was created with the arrival of British Overseas Airways Corporation, Cardiff Airlines and North-east Air Company from the ye ar 1975. Conversely, British Airways had its first flight facility from the First World War that makes it as ancient as an era. All the way through the past, British Airways had extended its actions by buying numerous min or air companies under its business(Woodley, 2006 ). Presently, The United Kingdom, as well as Spanish banner-transporters, have amalgamated and turn up with an official contract that British Airways and Spain Airlines, will syndicate their actions in a novel business named as Global Airlines Group. They have agreed to amalgamate due to a slump that seriously smashes the operations of both air companies. Due to the inauguration of novel terminal-5 at Heathrow airfield by the British Airways, the airlines also confronted issues with the training of employees that also led to flight termination and grievances of misplaced baggage. Furthermore, the increasing petroleum rates also result in an increase in rates of tickets. So, the objective of this report is to describe in what way management accounting can assist the administration of British Airways, chiefly the key techniques that are constructive to the airlines (Jarvis, 2014 ). Review of the Management Accounting Management accounting is a limited kind of accounting where the provided information is additionally explicit. Moreover, it subsists to aid administrators by assisting them work as resolution creators, organizers and supervisors of their particular divisions or zones of accountability. It also helps the managers in creating judgments or solving issues and providing accounting info essential to create accurate prospect strategies (ABDEL, 2011 ). They are expected to deliver fiscal or monetary information that is chiefly accessible to those in administrative place. These are required in the jobs of policymaking, forecasting and controlling to facilitate the industry work efficiently and competently. Strategy-making and forecasting are one of the critical jobs enacted by the management accounting. There are examples that the organization wants to resolve with the finest selection to be followed that at the similar period constructive to the business. The determined passages of an Act will be assessed as to its expenses and welfares that are the part of forecasting. Moreover, the information will be additional operative if the outcome of the review revealed that the profits offset the expenses. Control is another crucial job that comprises an evaluation of actual presentation with the strategy, so that deviancies from the novel strategy are recognized and remedial action is performed(Thukaram, 2007 ). Financial Accounting, as well as Management Accounting is the two fold zones of accounting in that they are dissimilar from each one about the data they deliver as well as to where the data is anticipated. Management accounting offers limited information for the management, but finan cial accounting information is all-purpose in nature projected to entire investors. The job of management accounting isaugmentedby the practice of diverse management accounting methods, for example, absorption costing, cost accounting, revenue costing, etc. Key Techniques and Methods of Management Accounting The part enacted by management accounting is quite critical as occasionally there all results are dissimilar from the forecasts, and the welfares did not offset the expenses of delivered information (Holtzman, 2013 ). Due to these disadvantages and to append age above role, management accounting techniques are presented. Activity-Based Costing (ABC): It is a costing method that classifies activities in a company and allocates the cost of every activity with resources to all goods and facilities conferring to the real depletion by each one. The management accounting techniques that is beneficial for the constant developments of British Airways is the Activity-Based Costing. This conventional methodology is recommended by numerous experts and researchers as the application of ABC has a constructive impact on the fiscal performance of the company. It also delivers information regarding cost as well as performance measurement. This technique is also valid in confronting the unadorned competition as it will provide the business the capability to control its expenses and valued their goods competitively. United Kingdom companies that implemented ABC overtook the corresponding non-ABC companies by around 28% in the 4 years. This technique might be supportive to British Airways chiefly when it decided to syn dicate work with Airlines of Spain(Bradtke, 2007 ). The amalgamation has been fruitful in the market place as the prices of shares of both air companies have upsurge. Conversely, the agreement amongst British Airways and Airlines of Spain has to contemplate numerous consequences that required instant consideration. One of British Airways main difficulties is the apportionment of expenses for labor agreements as well as workers retirement pension. It has a shortfall of Dollar 5.71 billion in its workers retirement pension proposal, and it needs to be settled instantaneously or else Spanish Airlines may extract out of the contract. Financial experts recommended that with the cost data of ABC, costing might be informal for British Airways established on a specific demand for every activity. For instance, if British Airway simplements ABC technique it will ensure an exact distribution of their funds(Zeuner, 2013 ). Short fall is sue regarding its workers retirement pension proposal as w ell as mislays instigated by cutting of expeditions will be controlled if managers of the company nimplemented ABC in creating decisions. Sensitivity Analysis: This technique is practically applied in decision making, forecasting as well as in evaluating threats. An example of air company investments is the amalgamation of British Airways with Spanish Airways that is a quite dicey decision. But, by sensitivity analysis, British Airways leaders will have the option to gaze at every contribution separately and critically evaluated the consequence of the project in the nearby prospect. Queries regarding the susceptibility of dissimilar choices will be retorted by this technique; for example, in what way the incomes of British Airways will be exaggerated if it amalgamated with Spanish Airlines. All the decisions will be verified to recognize the influence of consequences. For instance, British Airways has dual choices to contemplate to expurgate its expenses i.e. to amalgamate with Spanish Airlines so that operational costs will be abridged or reduce its figure of terminuses to govern overhead(Chatterjee Hadi, 2009 ). There are some other management accounting techniques whose notions are not appropriate to the current condition of British Airways like ratio analyzes or standard costing. Management accounting is prospect-leaning, and the idea of the above techniques does not match the conditions. Strengths and Weaknesses of the Analysis The role of a management accounting must be acknowledged first so that application of management techniques becomes additional operative. The Certified public accountant, as well as managers should recognize that how plans must be altered from period to period in order to deal with the persistently varying situations. For instance, maximum of the air companies currently are bearing in mind the notion of amalgamation. This notion should be sustained with facts and data that need to be progressive, so that the investigation can be reflected secured. There must be a wide-ranging opinion of the company as well as the accounting info must also be comprehensive to all persons that are the nmfragment of it. This analysis might be strengthened more if gain access to financial records, competitions as well as the fiscal system of British Airways is made accessible(Little, 2008 ). The entire accounting records must correspondingly be revolutionary and not olden to overlap through the notion of management accounting. There is a narrow-minded attention on this analysis bearing in mind that the maximum of the period the issue is concentrated on the amalgamation deeds of British Airways and Spanish Airlines. If entire required facts are made accessible, like, whole market place investigation in every apprehensive area, then there will be abundant understandings on what additional techniques the business must think through. SWOT Analysis Of British Airways Strengths 1. Robust Support of UK Government. 2. Sturdy Core in UK. 3. Resilient trademark existence and exceptional universal manifestation. 4. It has a convoy dimension in excess of 271 airplanes. 5. It has approximately 161 global terminuses through 7 continents. Weaknesses 1. Stark Rivalry from other Airlines in UK. 2. Strong competition leads to restricted market segment. Opportunities 1. The Heathrow Terminal is the main pivot through the world and it has a chief existence in UK. 2. Increasing its worldwide operations. Threats 1. Increasing Petrol Prices. 2. Escalating Labour Expenses. 3. Growing Competition in the marketplace of Europe.. Conclusion British Airways has upheld its individuality to grow into one of the frontrunners in the commercial airline business(Pine Gilmore, 2011 ). It is essential to conclude that regardless of the universal slump the air company still succeeded to develop its plans and increase its funds. The amalgamation process with Spanish Airlines is virtuous chance for British Airways to create status and accordingly augmented its marketplace share price. Though the amalgamation had created difficulties but British Airways still succeeded to uphold its image and status in the marketplace. By implementing the diverse management accounting techniques, the supervisors learned to create improved decisions as well as vigilant planning to control expenses(Steffan, 2008 ). Bibliography ABDEL, G., 2011. Review of Management Accounting Research. Hampshire: Palgrave Macmillan. Bradtke, D., 2007. Activity-Based-Costing. Germany: GRIN Verlag. Chatterjee, S. Hadi, S. A., 2009. Sensitivity Analysis in Linear Regression. New York: John Wiley Sons. Holtzman, P., 2013. Managerial Accounting For Dummies. New Jeresy: John Wiley Sons. Jarvis, P., 2014. British Airways. Gloucestershire: Amberley Publishing Limited. Little, G., 2008. Test of Professional Competence in Management Accounting. Oxford: Elsevier. Monti, G., 2007. EC Competition Law. s.l.:Cambridge University Press. Pine, J. Gilmore, H. J., 2011. The Experience Economy. Harvard : Harvard Business Press. Steffan, B., 2008. Essential Management Accounting. London: Kogan Page Publishers. Thukaram, M., 2007. Management Accounting. New Delhi: New Age International. Woodley, C., 2006. The History of British European Airways. South Yorkshire: Casemate Publishers. Zeuner, P., 2013. Activity-Based Costing. Germany: GRIN Verlag.