Managerial Accounting Problem Essay Example | Topics and Well Written Essays - 500 words

Managerial Accounting Problem - Essay Example Depreciation only influences net income through taxes, but because I compute before-tax NPV, this doesn't matter. The net cash flow from each year is identical, so the present value of all cash flows can be calculated as PV of annuity with annual payment of 500,000 for 20 years. 2. When calculating after-tax NPV of the new lift, I continue using the data calculated in task #1, but expand it to include the effect of taxes. Depreciation is included in costs this time because it influences the income after tax and therefore the final cash flow. Depreciation is calculated based on MACRS recovery period of 10 years (taken from Table 6.4. on p.122, Brealey, Myers & Allen, 2006). The after-tax required return of 8% is used to calculate the net present value of cash flows from the project. Because the net cash flows for periods 12 - 20 are identical, I first found their net present value at the beginning of the 12th period and then discounted them back to period 0. 3. There is a number of subjective factors that can affect the investment decision apart from NPV of the project.

Communication Styles Essay Example for Free

Communication Styles Essay In this current context, the study investigates language and communication issues from the perspectives of two categories: (1) EAL professionals who are employed in their field and (2) managers in companies that employ them. Questions of language and communication need to be unpacked so that language educators, settlement services, employers, EAL immigrants and policy makers can understand language needs in more depth than a numerical proficiency level can provide. Investigating employers’ and EAL employees’ perspectives on communication experiences in the workplace can add to our understanding of these issues. The study aims to capture participants’ hindsight and reflections on their own employment experiences, as managers or employees. It attempts to build on findings of the existing research and also opens up issues for further questioning. It presents insights but also uncovers contradictions, and identifies directions for further research and policy adjustment. The study reported here comprises the interview phase of a two-part project; the second part, an observational case study of immigrant professionals in the workplace, is currently underway. Interviews of employers of EAL immigrant professionals and tertiary-educated EAL employees offer a focus on language and communication experiences in the workplace. Interviewees thus have the additional benefit of reflection and hindsight and the open-ended interview format allowed them to construct their own perspectives. While the study size and interpretive approach mean that the research findings are not generalizable, they present insights into issues that have been identified but not widely analyzed. The current system of pre-immigration testing to determine the level of language readiness for the workplace does not adequately reflect the breadth and depth of communicative needs in particular workplace contexts. For example, engineers who need to communicate with construction site workers, as well as clients on the telephone and colleagues in meetings need a range of English language competencies well beyond test taking skills. Nevertheless, it might be expected that highly-qualified, experienced EAL immigrants would feel confident that once they pass the language test requirements, their English would be adequate to perform their work. One drawback for both employers and employees is that communicative language development takes time. If newly-hired employees need to work immediately with customers and clients, employers may be disappointed in their communication skills. Likewise, if employees are in a workplace with little regular interpersonal contact, including informal contact where they can talk without job performance stress, their language development is disadvantaged. For example, the importance of asking questions and checking understanding can be emphasized, discussed and compared across cultures in language and work orientation programs. But employers can also adopt non-threatening strategies for checking comprehension, as well as giving feedback. Moreover, it is important to remember that miscommunication is a function of various situations and does not always arise from problems of English language ability. They tended to see their job as particular tasks and responsibilities for which they were well-qualified and experienced. Employers, on the other hand, considered interaction at work to be essential to smooth functioning of the workplace and to the establishment and maintenance of workplace relationships. They faulted EAL employees’ general lack of engagement in workplace interaction. This project has taken a step in investigating issues of language and communication in the workplace. The findings can be assessed against others’ knowledge and experience of employers and EAL immigrant professionals COMMUNICATION ACCOMODATION THEORY (http://en.wikipedia.org/wiki/Communication_accommodation_theory) Communication accommodation theory (CAT) is a theory of communication developed by Howard Giles. It argues that â€Å"when people interact they adjust their speech, their vocal patterns and their gestures, to accommodate to others†[1]. It explores the various reasons why individuals emphasize or minimize the social differences between themselves and their interlocutors through verbal and nonverbal communication. This theory is concerned with the links between â€Å"language, context and identity†.[2] It focuses on both the intergroup and interpersonal factors that lead to accommodation as well as the ways in which power, macro and micro-context concerns affect communication behaviors. [2] There are two main accommodation processes described by this theory. Convergence refers to the strategies through which individuals adapt to each other’s communicative behaviors, in order to reduce these social differences.[3] Meanwhile, Divergence refers to the instances in which individuals accentuate the speech and non-verbal differences between themselves and their interlocutors.[3] Sometimes when individuals try to engage in convergence they can also end up over-accommodating, and despite their good intentions their convergence can be seen as condescending. Background Speech accommodation theory The communication accommodation theory was developed by Howard Giles, professor of Communication at the University of California, Santa Barbara. It evolved from the speech accommodation theory (SAT), but can be traced back to Giles’ accent mobility model of 1973. The speech accommodation theory was developed in order to demonstrate the value of social psychological concepts to understanding the dynamics of speech. It sought to explain â€Å"the motivations underlying certain shifts in people’s speech styles during social encounters and some of the social consequences arising from them†. Particularly, it focused on the cognitive and affective processes underlying individuals’ convergence and divergence through speech. The communication accommodation theory has broadened this theory to include not only speech but also the â€Å"non-verbal and discursive dimensions of social interaction†. Thus, it now encompasses other aspects of communication. In addition CAT has moved in a more interdisciplinary direction than the previous speech accommodation theory. It now also covers a wider range of phenomena. Social psychology and social identity theory Like speech accommodation theory, communication accommodation theory continues to draw from social psychology, particularly from four main socio-psychology theories: similarity-attraction, social exchange, causal distribution and intergroup distinctiveness. These theories help to explain why speakers seek to converge or diverge from the language, dialect, accent and behavior of their interlocutors. CAT also relies heavily in social identity theory. This later theory argues that a person’s self-concept comprises a personal identity and a social identity, and that this social identity is based in comparisons people make between in-groups (groups to which they belong) and out-groups (groups to which they don’t belong). According to social identity theory, people strive to maintain a positive social identity by either joining groups where they feel more comfortable or making a more positive experience of belonging to the groups to which they already belong. Since speech is a way to express group membership, people adopt convergence or divergence in communication in order to â€Å"signal a salient group distinctiveness, so as to reinforce a social identity†. Communication accommodation thus, becomes a tool to emphasize group distinctiveness in a positive way, and strengthen the individual’s social identity. Four main socio-psychologies Similarity-attraction The similarity-attraction theory posits that â€Å"the more similar our attitudes and beliefs are to those of others, the more likely it is for them to be attracted to us. Convergence through verbal and non-verbal communication is one of the mechanisms that we can use to become more similar to others, increasing their attraction towards us. For this reason, it can be said that one of the factors which leads individuals to use convergence is a desire to obtain social approval from his or her interlocutor. It could hence be concluded that â€Å"the greater one’s need for social approval, the greater will be one’s tendency to converge.† Natalà © (1975), for instance, has found that speakers with high needs for approval converge more to another’s vocal intensity and pause length than those with low needs for approval†. An individual on the receiving end of high level of accommodation is likely to develop a greater sense of self-esteem and satisfaction than being a receiver of low accommodation. Social exchange process The social exchange process theory â€Å"states that prior to acting, we attempt to assess the rewards and costs of alternate courses of action†, and that we tend to choose whatever course of action will bring greater rewards and less costs. Although most often convergence can bring forth rewards, there are some occasions when it can also bring forth costs such as â€Å"increased effort to converge, a loss of perceived integrity and personal (and sometimes group) identity†. Hence when choosing whether or not to use convergence people assess these costs and rewards. Causal attribution process The causal attribution theory â€Å"Suggests that we interpret other people’s behavior, and evaluate the individual themselves, in terms of the motivations and intentions that we attribute as the cause of their behavior† It applies to convergence in that convergence might be viewed positively or negatively depending on the causes we attribute to it: â€Å"Although interpersonal convergence is generally favorably received, and non-convergence generally unfavorably received, the extent to which this holds true will undoubtedly be influenced by the listeners attributions of the speaker’s intent†. Giles and Smith provide the example of an experiment that they conducted amongst French and English speaking Canadians, in order to illustrate this. In this experiment, when individuals believed that the person from the different group used language convergence in order to reduce cultural barriers it was more positively evaluated than when they attributed convergence to the pressures of the situation, which forced them converge. â€Å"When French Canadian listeners attributed an English Canadian’s convergence to French as due to his desire to break down cultural barriers, the shift was viewed favorably. However, when this same behavior was attributed to pressures in the situation forcing the other to converge, positive feelings were not so strongly evoked†. Intergroup distinctiveness The process of intergroup distinctiveness, as theorized by Tajfel argues â€Å"that when members of different groups are in contact, they compare themselves on dimensions which are important to them, such as personal attributes, abilities, material possessions and so forth†. In these â€Å"intergroup social comparisons† individuals seek to find ways in which they can make themselves positively distinct from the out-group in order to enhance their social identity.[5] Because speech style and language is an important factor in defining social groups, divergence in speech style or language is often employed in order to maintain intergroup distinctiveness and differentiate from the out-group, especially when group membership is a salient issue or the individual’s identity and group membership is being threatened.[6] Assumptions Many of the principles and concepts from social identity theory are also applicable to communication accommodation theory. Under the influence of social psychology, especially social identity theory, communication accommodation theory are guided by mainly four assumptions. * There are speech and behavioral similarities and dissimilarities in all conversations. * The way in which we perceive the speech and behaviors of another will determine our evaluation of the conversation. * Language and behaviors have the ability to communicate social status and group belonging between people in a conversation. * Norms guide the accommodation process which varies in its degree of appropriateness. The first assumption indicates that people bring their past experience to conversations. Therefore, communication is not only influenced by situational conditions and initial reactions but the social-historical context in which the interaction is embedded†. People’s attitudes and beliefs, derived from those factors, determine the extent to which they are willing to accommodate in a conversation. The more similarities they share with each other, the more likely for them to accommodate. The second assumption is concerned with how people perceive and evaluate a conversation. Perception is the process of attending to and interpreting a message and evaluation is the process of judging a conversation.[1] When someone enters a conversation, usually he first observes what takes place and then decides whether he should make adjustment to fit in. However, the decision about accommodation is not always necessary. Imagine the encounter of two strangers, they may have a random small talk and simply say goodbye. In this case, neither of them is likely to evaluate the conversation since they have little possibility to meet again. The importance of language and behaviors is illustrated in the third assumption since they are indicators of social status and group belongings. When two people who speak different languages try to have a conversation, the language they agree to communicate with is more likely to be the one used by the higher status person. This idea of â€Å"salient social membership negotiation is well illustrated in the situation of an interview as the interviewee usually makes all efforts to identify with the interviewer by accommodating the way he speaks and behaves so that he can have more chance to secure the job. The last assumption puts emphasis on social appropriateness and norms. Here norms are defined as â€Å"expectations of behaviors that individuals feel should or should not occur in a conversation†. Those expectations give guidance to people’s behaviors, helping them to figure out the appropriate way to accommodate. Most of the time, the accommodation made according to those norms are perceived socially appropriate. For instance, when a young person talks to the seniors in his family, he should avoid using jargons among his generation to show respect and communicate more smoothly. Convergence, over-accomodation, and divergence Convergence Convergence refers to the process through which an individual shifts his speech patterns in interaction so that they more closely resemble the speech patterns of his interlocutor(s). People can converge through many features of communication such as their use of language, their â€Å"pronunciation, pause and utterance lengths, vocal intensities, nonverbal behaviors, and intimacy of self-disclosures†(Giles and Smith, 1979, 46), but they do not necessarily have to converge simultaneously at all of these levels. In fact people can both converge at some levels and diverge through others at the same time. People use convergence based on their perceptions of others, as well as what they are able to infer about them and their backgrounds. Attraction (likability, charisma, credibility), also triggers convergence. As Turner and West note, â€Å"when communicators are attracted to others they will converge in their conversations†. On the other hand, as the similarity attraction theory highlights, when people have similar beliefs, personality and behaviors they tend to be more attracted towards each other. Thus when an individual shifts his speech and non-verbal behaviors in order to assimilate to the other it can result in a more favorable appraisal of him that is: when convergence is perceived positively it is likely to enhance both the conversation and the attraction between the listener and the speaker. For this reason it could be said that convergence reflects â€Å"an individual’s desire for social approval† from his interlocutor, and that the greater the individual’s need for social approval, the more likely he or she is to converge. Besides attraction, other factors which â€Å"influence the intensity of this â€Å"need of approval and hence the level of convergence â€Å"includes the probability of future interactions, the social status of the addressee, and interpersonal variability for need of social approval†. Other factors that determine whether and to what extent individuals converge in interaction are their relational history, social norms and power variables. Because individuals are more likely to converge to the individual with the higher status it is likely that the speech in a conversation will reflect the speech of the individual with the higher status. Converging also increases the effectiveness of communication, which in turn lowers uncertainty, interpersonal anxiety, and increases mutual understanding. This is another factor that motivates people to converge. Over accommodation However, although people usually have good intentions when they attempt to use convergence in conversation, some interlocutors can perceive convergence as patronizing and demeaning and hence just as it can enhance conversation it can also detract from the processes of communication. Over accommodation can exist in three forms: Sensory over accommodation, dependency over accommodation, and intergroup over accommodation. Sensory over accommodation is when an individual thinks that he is being accommodative to someone’s linguistic or physical disability but overdoes it, so that the other person perceives his behavior as patronizing. Dependency over accommodation refers to the situations â€Å"when the speaker places the listener in a lower-status role so that the listener is made to appear dependent on the speaker and he or she understands that the speaker is the primary speaker in the conversation in order to communicate a higher status. And finally, intergroup over accommodation involves manipulating people based on a general stereotype and not as individuals with an individual persona. The socially categorized stereotypes that people hold of others result in these cognitively linked forms of over-accommodation. Over-accommodation takes place in all types of circumstances. For example, it is not uncommon for nurses or caretakers to speak to their elderly patients in baby talk. While the nurses may have the purest of intentions to care and to relate to them, the patients actually end up feeling degraded and underestimated. In this particular case, it also can cause difficulty in adapting to an institution and a dysfunctional environment. Divergence Divergence is a linguistic strategy whereby a member of a speech community accentuates the linguistic differences between his or herself and his interlocutor. In the most part it reflects a desire to emphasize group distinctiveness in a positive manner and it usually takes places when an individual perceives interaction as an intergroup process rather than an individual one. â€Å"Given that communication features are often core dimensions of what it is to be a member of a group, divergence can be regarded as a very important tactic of displaying a valued distinctiveness from the other., This helps to sustain a positive image of one’s in-group and hence to strengthen one’s social identity. Divergence can thus be a way for members of different groups to maintain their cultural identity, a mean to contrast self-images when the other person is considered a member of an undesirable group, and a way to indicate power or status differences, as when one individual wishes to render another one less powerful. Components of CAT Further research conducted by Gallois et al. in 1995 has expanded the theory to include 17 propositions that influence these processes of convergence and divergence. They are categorized into four main components: the sociohistorical context, the communicators’ accommodative orientation, the immediate situation and evaluation and future intentions.These components are essential to Communication accommodation Theory and affect the course and outcome of intercultural conversations. Sociohistorical context The sociohistorical context refers to way in which past interactions between the groups to which the communicators belong influence the communication behaviors of the communicators. It includes the relations between the groups having contact and the social norms regarding contact[4]. These relations between the different groups to which the communicators belong, influence the communicators’ behavior. Amongst these socio-historical factors which influence communicators are: political or historical relations between nations, the different religious or ideological views between possessed by the two groups participating in the conversation, amongst others. Accommodative orientation Accommodative orientation refers to the communicators tendencies to perceive encounters without group members in interpersonal terms, intergroup terms, or a combination of the two. There are three factors that are crucial to accommodative orientations: (1) â€Å"intrapersonal factors† (e.g. personality of the speakers), (2) â€Å"intergroup factors† (e.g. communicators’ feelings toward out-groups), and (3) â€Å"initial orientations† (e.g. perceived potential for conflict). The issues which influence this last factor include: collectivistic culture context or whether the culture is collectivistic or individualistic; distressing history of interaction, the possible tensions that exist between groups due to past interactions; stereotypes; norms for treatment of groups; and high group solidarity/ high group dependence, how dependent the persons self-worth is in the group. Immediate situation The immediate situation refers to the moment in which the actual communication takes place. It is shaped by five aspects which are interrelated: (1) â€Å"sociopsychological states†, (2) â€Å"goals and addressee focus† (e.g. motivations and goals for the encounter), (3) â€Å"sociolinguistic strategies† (e.g. convergence or divergence), (4) â€Å"behavior and tactics† (e.g. topic, accent) and (5) â€Å"labeling and attributions†. Evaluation and future intentions This aspect deals with how communicators perceive their conversational partners’ behavior and its effects on future encounters between the two groups. Positively rated conversations will most likely lead to further communication between the interlocutors and other members of their respective groups. Communication Accommodation Theory in Action In 1991, Giles, Coupland, and Coupland expressed the belief that a â€Å"more qualitative perspective† would be necessary in order to obtain more diverse and clarifying explanations of the behaviors presented within varying contexts. They referred to this as â€Å"the applied perspective† that showed accommodation theory as a vital part of day-to-day activity as opposed to solely being a theoretical construct. They sought to â€Å"demonstrate how the core concepts and relationships invoked by accommodation theory are available for addressing altogether pragmatic concerns†[3]. For Giles, Coupland, and Coupland, these â€Å"pragmatic concerns† were extremely varied in nature. One of these â€Å"pragmatic concerns† included understanding the relational issues that present themselves in the medical and clinical fields, such as the relational â€Å"alternatives, development, difficulties, and outcomes,† which affected the patients’ contentment with their medical interactions and whether or not, through these interactions, they agreed with and implemented said health care regimens. Another of these situations involved the potential options in a legal arena. The way that the judges, plaintiffs, and defendants accommodated themselves to both the situation and the jury could manipulate the jury’s acceptance or rejection of the defendant, and could, thus, control the outcome of the case. Communication accommodation theory was also found to have a place in media. In regards to radio broadcasting, the alliance of the audience with the broadcaster played an important part in both the ratings that the shows would receive and whether the show progressed or was cancelled. In the area of jobs and employment, accommodation theory was believed to influence the satisfaction one has with his or her job and the productivity that that person possesses in said job through convergence with or divergence from the co-workers and their work environment. Accommodation theory also possessed practical applications in the development of learning a second language. This was seen when the student’s education of and proficiency in said language was either assisted or hindered by accommodative measures. Giles, Coupland, and Coupland (1991) also addressed the part that accommodation theory plays in a situation they called â€Å"language switching†, when bilingual individuals must decide which language they should speak when they are in an organizational environment with other bilingual individuals. This can be an incredibly important choice to make, especially in a business setting, because an incorrect judgment in this area of communication could unwittingly promote negative reactions between the two or more parties involved. In addition, accommodation theory was strongly intertwined with the way an immigrant accepts and is accepted by their host country. An instance of over-accommodation from the immigrating individual can unintentionally damage that person’s sense of individuality while a strong divergence from the immigrating individual from their host culture can prompt the natives of the host country to react negatively to them because of the immigrating individual’s use of divergence. The final area of practical application, as presented by Giles, Coupland, and Coupland (1991), was that of accommodation theory’s effect on the lives of people with disabilities. Accommodation theory was thought to either aid them by promoting them to â€Å"fulfill their communicative and life potentials,† or by hindering them from reaching their full potential by focusing on the disability that made them different rather than the other characteristics that made them similar to their peers. Despite the fact that communication accommodation theory is theoretical, it has shown itself to be viable by its numerous practical applications. Communication Accommodation Theory in Action among Diverse Cultural Groups Intergenerational communications Researchers of communication accommodation theory have been interested in conversations between the elderly and the young; actively apply this theory to analyze intergenerational communication situations. Since aging of population is growing to become a serious issue in current society, communication difficulties of older adults and issues like ageism should be addressed. According to mainstream sociolinguistic studies, age is regarded as a variable only to the extent that it may show patterns of dialectal variation within speech communities across time. However, â€Å"the existence of potentially important generational differences relating to beliefs about talk, situational perceptions, interactional goals, and various language devices between the young and the elderly as empirical questions in their own right â€Å"are all taken into account when using communication accommodation theory to explore intergenerational communication problems and improve effectiveness. Previous research have also developed models such as the communication predicament model of ageing and the communication enhancement model of ageing to point out numerous consequences brought by both negative and positive attitudes towards aging.

Louis XIV Essay -- France French King Louis XIV Essays

Louis XIV After being ruled by a prime minister for so long, France needed some changes. That is exactly what Louis the XIV would bring to France. In an age of separation, Louis wanted to start a unification process. He started this by giving himself sole power and also only having one religion for the country. The king is always the center of attention good or bad. Louis was prepared to take the good with the bad, and handled it well. He emphasized the king as the center of attention. While some see him as egotistical and greedy, Louis was one king who knew how to make improvements. At four years and eight months, Louis XIV became King. His mother, Anne of Austria, ruled until he could take the throne, but it wasn’t until Louis came to power that France began making improvements. Louis made some powerful moves during his reign; one of them was to nullify the Edict of Nantes. He did this to re-establish Catholicism in France (Europe). While there was opposition, the decision went over well because most of France was catholic at the time. Louis also ruled as an absolute monarch (no prime minister), which has not been done for a while. This was a big step because he was taking all of the power and giving it to himself. Also under King Louis’ rule industry and commerce flourished. This came with the help of his counselors. It was at this time that art and literature began to flourish as well. During this period literature and art were made to flatter the King, which is another reason Louis encouraged them. Overall, art, literatur e, war and statesmanship ranked highest when Louis was in power. It can be argued that Louis was not good for France because of his spending... ...o be treated as such. This was a good analogy for the time. Kings are the center of the kingdom and, by making the court respect that Louis made them realize that the king needs respect. It is a good idea because then the king does get the respect that he deserves. Louis the XIV had a commanding presence and used it wisely. In a time of great separation Louis began to try unifying France. While he did have a few faults, his positive change helped France more than any other king could have at that time. Those who feel his few faults are enough to call him a bad king are dwelling on such minor issues and should look at his overall influence on the country. Under his rule, France ranked highest among art, literature, war and statesmanship. Louis XIV had plenty of skill, which is why he was able to bring such great qualities all at once to France.

Cellular Networks With Base Station Cooperation Engineering Essay

Energy ingestion of communicating engineerings is of great involvement late for both environmental and economical grounds. Coordinated Multi Point ( CoMP ) is a promising engineering to extenuate and even exploit intervention through signal articulation processing, response and transmittal at the Base Stations ( BSs ) and has the possible to hike spectral efficiency every bit good as to supply more homogenous user informations rate distribution. However, CoMP requires extra infrastructural cost, low latency backhaul links between BSs, signalling operating expenses and hence, increased signal processing at the transceivers end. The energy efficiency appraisal of auspicious engineerings like CoMP will function as a utile tool to look into the tradeoff between the possible additions in throughput and the energy ingestion in future cellular webs. This research investigates the farther executions needed for BS co-operation and evaluates the extra power that will be dissipated at Base Stations due to the new constituents. This undertaking aims at developing a mathematical power ingestion theoretical account which will depict the extra power needed for BS cooperation in cellular systems and interpret the several parametric quantities harmonizing to the LTE/LTE-A cellular criterions. The planetary information and communicating engineering ( ICT ) industry is a fast turning subscriber to the universe broad nursery gas emanations. The whole Information and Communication Technology ( ICT ) sector has been estimated to stand for about 2 % of planetary CO2 emanations and about 1.3 % of planetary CO2 equivalent ( CO2e ) emanations in 2007 [ 1 ] . The survey in [ 2 ] estimations that the nomadic webs represent 0.2 % and 0.4 % of the planetary CO2e emanations in 2007 and 2020, severally. Within ICT, the nomadic communications sector today has a instead little portion [ 3 ] , but a important addition can be expected in the close hereafter. Merely late, the European Union Commission called on ICT industry to escalate their aspirations to cut down its C footmark by about 20 % already by 2015 and to better energy efficiency of the webs. The chief subscriber to greenhouse gas emanations caused by wireless webs originates from the wireless entree web, more exactly from the bas e Stationss. There are in chief two ways to cut down energy cachexia: by energy cognizant constituents in the base Stationss and by energy cognizant web deployment schemes, efficaciously minimising idle capacity of base Stationss [ 4 ] . As per [ 2 ] , RAN operation dominates the planetary C footmark of planetary Mobile communications today, and it will still be responsible for about tierce of the C footmark in 2020. The survey presented in this papers suggests that nomadic traffic volume will lift by a factor of 100 to 150 and the figure of BS sites will approximately double between 2010 and 2020. Parallel to that, the overall RAN energy ingestion will lift by approximately 40 % . The survey besides posits that the overall C footmark of nomadic communications will about treble between 2007 and 2020 if no extra agencies for decrease are taken. The EARTH undertaking focuses on RAN operation and is expected to hold major impact on the energy ingestion ( and therefore the C footmark ) of new base Stationss. RAN energy ingestion could be decreased by agencies of a co-ordinated attempt to recognize both component and system-level energy efficiency betterments. Despite the strong connexion of increasing informations rates and higher energy ingestion, scientific and technological advancement managed to maintain gait with the addition, a fact that is besides observed for the last decennary of 3G developments. In that period, possible information rates and existent informations traffic increased by a factor of one hundred while the energy ingestion of base Stationss dropped five times per provided channel capacity harmonizing to Ericsson. This tendency could go on as the EARTH undertaking keeps working on energy efficiency in nomadic webs [ 7 ] .LTE and Coordinated Multi-PointThe 3GPP Long Term Evolution ( LTE ) and LTE-Advanced are extremely flexible wireless interface and one of the ends of this development is to make and even excel the demands on IMT-Advanced, as presently being defined by ITU-R. These demands will include farther important sweetenings in footings of public presentation and capableness compared to current cellular systems, including the first release of LTE. In order to make the demand of LTE Advanced, coordinated multi-point transmission/reception ( CoMP ) is used as a method to increase the cell norm and cell edge user throughput in the both uplink and downlink [ 5 ] . When coordination is employed, inter-cell intervention is mitigated so that the links can run in the high signal/noise ratio ratio government and hence increases the spectral efficiency which is a major design end for future radio webs [ 6 ] . Coordinated multi-point transmission/reception is a concerted transmittal and response engineering, which can be easy deployed in a semi-distributed communicating system with distributed aerials but centralized control functionality. Several transmittal points are linked to one eNodeB, whereas each transmittal point may incorporate one or multiple antenna elements. Multiple UEs ( User Equipment ) can be served at the same time by one or multiple transmittal points of the same or different eNodeBs. The co-ordinated cardinal accountants retrieve information from distributed transmittal points and allocate resources to fulfill the QoS demands of the UEs while maximising the web public presentation [ 5 ] . Uplink CoMP: Uplink CoMP implies a possibility for joint processing of signals being received at multiple, geographically detached points. In general, a UE does non necessitate to be cognizant of at what points its transmittal is being received and what processing is carried out on the corresponding standard signals, either at these points or, instead, at a cardinal accountant. Two uplink CoMP articulation processing strategies are listed below: A. Joint processing before decrypting In this strategy, users transmit signals to all receive points and receive points will send on the signals they received to the joint point before decrypting it. Using this scheme really small information is lost, and hence higher CoMP addition can be achieved. But new interfaces between receive points and joint point are needed in this instance. B. Joint processing after decrypting In this strategy, users transmit signals to all receive points and receive points will send on the signal they received to the joint point after decrypting it. Using this strategy more information is lost compared to the old strategy, and hence lower CoMP addition will be achieved. But this strategy can be achieved easy by utilizing bing X2 or S1 interfaces. Downlink CoMP: Downlink CoMP implies dynamic coordination between downlink transmittals from multiple geographically separated transmittal points. In conventional cellular systems, each base station transmits signals intended for users within its cell coverage. Depending on the users ‘ channel conditions, intervention caused by neighbouring cell transmittals can aggressively degrade the standard signal quality. Therefore, the downlink capacity of cellular radio webs is limited by inter-cell intervention. Since the base Stationss can be connected via a high-velocity anchor, there is an chance to organize the base aerial transmittals so as to extenuate inter-cell intervention, and therefore better spectral efficiency. The chief rule of CoMP that UE could be jointly served by multiple points over the same wireless resource is the footing to increase the spectrum efficiency while keeping the macro diverseness and/or spacial multiplexing addition [ 5 ] . In the general sense, the downlink CoMP is chiefly characterized into two categories: A. Coordinated scheduling and/or beam-forming ( CS-BF ) In the category of CS-BF, â€Å" information to individual UE is outright transmitted from one of the transmittal points while the programming determinations are coordinated to command the intervention generated in a set of co-ordinated BSs † . In other words, the informations intended for a peculiar UE is non shared while some information related to the channels are shared among different BSs. B. Joint treating / transmittal ( JP ) In the category of JP, â€Å" information to individual UE is at the same time transmitted from multiple transmittal points to better the standard signal quality and/or natural actively intervention for other UEs † . In this instance, informations intended for a peculiar UE is shared among different BSs and is jointly processed at these BSs [ 4 ] .General Power ModelIn order to quantify additions achieved by using energy cognizant techniques in web planning, an appropriate energy efficiency metric must be defined. One of import figure of virtue is the energy ingestion of a web. In the hereafter, base Stationss will go more energy efficient. The points with the highest impact on a base station ‘s power ingestion are the undermentioned: use of distant wireless caputs or ordinary power amplifiers with matching feeder losingss, different sorts of chilling ( air conditioning, air circulation, or free chilling ) , site sharing ( particularly sing substructure ) , and figure of bearer frequences. It can be expected that the mean power ingestion demand per spot lessenings in the undermentioned old ages due to new engineerings. Major power devouring constituents involved in cellular webs are listed below [ 4 ] : Power Amplifier: The power amplifier ( PA ) is expected to work in a province in which the extremum value of the signal corresponds with the possible peak power of the PA. Thus, the efficiency can be maximized. Doherty and Gallium nitride ( GaN ) PAs have the potency to better the efficiency. They are particularly suited for LTE with its high crest factor compared to GSM, where a changeless envelope transition technique is employed ( Gaussian Minimum Shift Keying: GMSK ) . Signal Processing: UMTS signals are much more complex than GSM signals sing the signal processing on sender and receiver side, whereas LTE signals are even more complex. Therefore, the signal processing per nexus is well increased. A/D Converter: This constituent consumes less than 5 % of a macro base station ‘s input power. Therefore, it is non regarded and assumed to be included in the signal processing portion. Antenna Gain and Feeder Loss: Normally included in the Link Budget. Power Supply and Battery Backup: The loss within these two constituents is typically between 10 % and 15 % and depends chiefly on the employed engineering. By utilizing 10 % , an optimistic value is assumed. Cooling: Cooling is chiefly dependent on environmental conditions. Valuess between nothing ( free chilling ) and 40 % can be found.Analysis/ENHANCEMents on Power ModelsEnergy Consumption of Cellular Base StationsPower Model # 1A simple theoretical account of the long term base station energy ingestion is given in [ 4 ] . Another power theoretical account capturing backhauling energy is modelled in [ 8 ] as followers: PBS = a * Ptx + B * Psp + c * Pbh, where PBS, Ptx, Psp and Pbh denote the norm consumed energy per base station, the radiated power per base station, the signal processing power per base station, and the power due to backhauling, severally. The coefficients a, B, and hundred theoretical account effects that scale with the matching power type such as amplifier and feeder losingss, chilling, or battery backup [ 4 ] . A brief overview of three power types has been given below: A. Transmission Transmit power effects the overall base station power ingestion through the efficiency of the power amplifier, the chilling equipment every bit good as battery backup required for operation. The mean transmit power per base station graduated tables with the inter site distance D harmonizing to the way loss theoretical account as 10 log ( Ptx ) = 10 log Pmin + 10 log K + 10 * I » log D/2 where Pmin is the needed minimal receive power at the Mobile and the term 10 log K + 10 log D2 is the path loss at the cell border in dubnium for a given inter site distance D. For power calculation we require coverage of 95 % and presume the base Stationss are centered at their cell countries. Average values of K have been taken with regard to shadowing and LOS chances as per LTE criterions. B. Signal Processing Base set digital signal processing is performed in all cellular base Stationss. The complexness of the operations and the energy ingestion depends amongst others on the employed air interface every bit good as the sum of cooperation between base Stationss. In the LTE-Advanced testbed execution about 10 % of the overall parallel and digital processing power are due to uplink channel appraisal and approximately 3 % are due to uplink and downlink MIMO processing. The former graduated tables linearly with Nc due to the increasing figure of estimated links. Assuming an MMSE filter operation, the latter requires Nc3 operations, nevertheless, the calculation is performed merely one time per cooperation bunch such that mean MIMO processing per base station merely scales quadratically with Nc. With a basal value of psp the signal processing power per sector as a map of different cooperation sizes graduated tables as Psp = psp * 0.87 + 0.1Nc + 0.03Nc2 C. Backhauling Reflecting the state-of-the-art in most cellular webs, we model backhaul as a aggregation of radio micro wave links of 100 Mbit per 2nd capacity and a power dissipation of 50 W each. Therefore for a given norm backhaul demand per base station cbh, the extra backhaul power computes as Pbh = ( cbh/100Mbit/s ) * 50W. The above mentioned is the power theoretical account proposed in [ 4 ] .Power Model # 2In this subdivision, the power theoretical account in [ 9 ] has been discussed. First, the power ingestion of the base Stationss has been evaluated. Based on this rating, the power ingestion of the base station to the radio coverage scope has The base Stationss are placed out-of-door and indoor residential scenario for the nomadic Stationss are the premises made in this work. A. Power ingestion of a base station In this subdivision, the power ingestion of base Stationss in wireless entree webs has been detailed. In a basal station we typically find several power devouring constituents. We define a base station as the equipment needed to pass on with the nomadic Stationss and with the backhaul web. A basal station contains equipment that occurs per sector ( so nsector times for all sectors ) such as digital signal processing ( responsible for system processing and cryptography ) , power amplifier, transceiver ( responsible for having and directing of signals to the nomadic Stationss ) , signal generator, AC-DC convertor. Furthermore a base station contains equipment that occurs merely one time such as the air conditioning and the microwave nexus ( responsible for communicating with the backhaul web ) . In the figure below, the equipment of the base station and the different notations for the power ingestion Pel of the different parts are indicated: Once the power ingestion of the different constituents of the base Stationss is known, the power ingestion Pel of the full base station ( in Watt ) can be calculated as follows: Pel = nsector ( nTx _ Pel/amp + Pel/trans + Pel/proc +Pel/conv + Pel/gen ) + Pel=micro + Pel=airco with nsector the figure of sectors in the cell, Pel/amp, Pel/trans, Pel/proc, Pel/conv, Pel/gen, Pel/micro and Pel/airco are the power ingestions of the power amplifier, the transceiver, the digital signal processing, the AC-DC convertor, the generator, the microwave nexus and the air conditioning, severally. Table below shows the values that we consider here for the power ingestion of this equipment for the considered engineerings. These values are retrieved from informations sheets of assorted makers of web equipment. In the above probe, cells have been considered with three sectors ( therefore nsector is 3 ) . Furthermore, nTx is the figure of conveying antennas per sector. In the most simple state of affairs, which is called a SISO ( Single Input Single Output ) system, the base station uses merely one aerial for transmittal and the nomadic station uses merely one aerial for having. In this instance the parametric quantity nTx is 1. When a MIMO ( Multiple Input Multiple Output ) system is considered where the base station uses two conveying aerials and the nomadic station one or two having aerials, the nTx parametric quantity is 2. For each conveying aerial of the base station we need one power amplifier. So we have to take the power ingestion of the power amplifier into history several times harmonizing to the figure of conveying aerials that are used in one sector. The power ingestion of each portion of the base station is a changeless value ( in Watt ) , except for the power amplifier. The po wer ingestion of the power amplifier depends on the required input power of the aerial. To pattern the power ingestion of the power amplifier we need to specify the efficiency _ of the power amplifier. The efficiency of the power amplifier is the ratio of RF end product power Pout/amp ( in Watt ) to the electrical input power Pel=amp of the power amplifier ( in Watt ) . B. Calculation of scope R In this subdivision, the power ingestion Pel of the base station has been related to the radio scope R. For this, a nexus budget has been set-up. A nexus budget takes all of the additions and losingss of the sender through the medium to the receiving system into history. First, the maximal way loss PLmax ( in dubnium ) has been calculated to which a familial signal can be subjected while still being noticeable at the receiving system. The way loss is the ratio of the radiated power to the standard power of the signal. Table below gives an overview of all the additions and losingss that occur. It is of import to observe that PLmax is dependent of the input power PTx of the aerial and therefore dependant of the end product power of the power amplifier which is Pel/amp. Once the maximal way loss PLmax is known, the scope R ( in meters ) can be determined by utilizing a way loss theoretical account. A general way loss PLmed map is given as: PLmed = g ( d| degree Fahrenheit, hemoglobin, hectometer ) PLmed is a map g ( : ) of the distance vitamin D ( in meters ) , the frequence degree Fahrenheit, the height hemoglobin of the base station and the height hectometer of the nomadic station. The measure before the | is a variable and varies over a uninterrupted interval while the measures after the | are parametric quantities which take merely one discrete know value. The map g ( : ) depends on the used way loss theoretical account e.g. , the HATA theoretical account and the Erceg theoretical account. Erceg C theoretical account has been used here. To find the distance d the upside-down map of equation above has been considered: 500 = g-1 ( PLmed| f, hemoglobin, hectometer ) Based on equation above the maximal scope R ( in meters ) that can be reached with the base station of a certain engineering has been estimated as follows: R = g-1 ( PLmax- SM | degree Fahrenheit, hemoglobin, hectometer ) with SM the shadowing border which depends on the standard divergence of the way loss theoretical account, the coverage per centum and the out-of-door standard divergence. Here we consider a coverage per centum of 90 % .Power Model # 3A elaborate and updated power theoretical account for LTE baseline system has besides been studied in [ 10 ] , one of the plants of EARTH undertaking enterprise, which will be an country of survey.Backhauling PropositionsFrom the comparing of Power Model # 1 and Power Model # 2, it is evident that the power ingestion of Microwave nexus has been underestimated in the former one by 60 % . As microwave nexus has a major function in the power ingestion theoretical account, it is indispensable to hold a more power efficient backhaul option. There is a demand for backhaul capacity to increase for nomadic broadband, informations entree, and picture services to prosecute the end-users every bit good as support cost in cheque. Radio-over-Fiber [ 11 ] as a solution has been turn toing how to administer broadband radio signals in entree webs, including dynamic allotment of resources. Radio-over-Fiber system ( RoF ) is the technique of modulating the wireless frequence ( RF ) sub-carrier onto an optical bearer for distribution over a fibre web. RoF technique has been considered a cost-efficient and dependable solution for the distribution of the hereafter radio entree webs by utilizing optical fibre with huge transmittal bandwidth capacity. RoF has the following chief characteristics: ( 1 ) it is crystalline to bandwidth or transition techniques. ( 2 ) Simple and little BSs. ( 3 ) Centralized operation is possible. New radio endorsers are subscribing up at an increasing demand of more capacity for ultra-high informations rate transportation at velocities of 1 Gbp/s and up sing, while the wireless spectrum is limited. This demand of more bandwidth allotment, topographic points heavy load on the current operating wireless spectrum and causes spectral congestion at lower microwave frequence. Millimeter Wave ( mm-Wave ) communicating system offers a alone manner to decide these jobs. Furthermore, to cut down the sum cost and serve as many users as possible, 60 GHz systems show first-class advantages for the future super-broadband informations services presenting in footings of information rate and power ingestion. Therefore, developing a cost effectual agencies of bring forthing optical millimeter-wave signals at frequences above 60 GHz is of great involvement.FUTURE WorkExisting Power Models needs to be studied in item and should be enhanced with the aid of EARTH [ 7 ] undertaking enterprise. Backhaul demands for LTE/LTE-A should be investigated as this one of the key demands for CoMP. Specifically, Power Requirements for Fibre Optic backhaul systems needs to be investigated. Most Energy Efficient Backhaul system should be recommended and included in the Power Model to heighten the same for better appraisal of Power Consumption. If clip licenses, power theoretical accounts for Mobile Equipment ( ME ) presently in the market should be studied in item and most energy efficient power theoretical account should be estimated.Undertaking AimsLearn about Coordinated Multi-Point ( CoMP ) Understand the construct of CoMP and why is it required? Learn about different sorts of CoMP involved in downlink and uplink. What is a Power Model and why is it required? Learn about LTE/LTE-A Cellular Standards Learn in item about LTE/LTE-A cellular webs Focus on the Base Station Subsystem as this is the portion which chiefly consumes power in cellular webs. Learn about Remote Radio Equipment introduced for LTE-A Develop a Power Model for the extra power needed for BS Co-operation in cellular systems Identify the Overhead required due to CoMP with specific concentration on Backhaul systems. Identify the LTE/LTE-A parametric quantities required to be mapped in the Power Model Develop/Recommend an enhanced energy efficient Power Model and interpret the several parametric quantities harmonizing to LTE/LTE-A cellular criterion.Work PlanA planned class of action for this undertaking is given below: TASKS Jan-March April – May June July August Undertaking 1 Undertaking 2 Undertaking 3 Undertaking 4 Undertaking 5 Task 1- Learn about Coordinated Multi Point and Generic Power Models. Task 2- Learn about LTE/LTE-A Cellular Standards and Architecture. Task 3- Investigate energy efficient Power Models and Backhaul demands Task 4- Identify and Learn in item about the Overhead constituents required due to Coordinated Multi Point particularly Backhaul system and Enhance bing Power Models Task 5- Design/Develop/Recommend an enhanced energy effcient Power Model and interpret the several parametric quantities harmonizing to LTE/LTE-A cellular criterion. In a nutshell, the overall program of action can be summarized as followers: Build on bing literature on base station energy ingestion and constituents involved in it. Further executions needed for Base Station cooperation and rating of extra power that will be dissipated at Bases Stations will be investigated. A power theoretical account for power ingestion depicting the extra power needed for Base Station cooperation in cellular systems will be developed and translated to respective parametric quantities harmonizing to LTE/LTE-A cellular criterions.

Public Library Essay

Library is something which has a lot of importance in everyone’s life. And specially in the life of school going children’s. It is responsible for teaching those children the moral values which are required a lot in further run of their life. Library is something whose importance cannot be neglected at any point of life. I consider myself to be very lucky as I was being provided with one of the best library by my school. My school had a big and efficient library. Almost all sorts of books required by student’s could be found in that library. And also there were many different types of magazines and newspapers in our library. We had a different room known as Reading Room adjacent to our library. It was the place where we used to take our books for reading them or making notes. No one was allowed to read books in library instead of teachers. Students till class 10th had two library period in a week. They had permission to issue books during those two periods only. Also they had to return the issued book within 15 days. No student till class 10th was allowed to keep books for more than 15 days. Keeping books with themselves for more than 15 days would require the student to pay a fine of Rs5 a day for each extra day. But this was not the case with senior students or students of class 11th-12th they were allowed to issue books whenever they wanted. There was no specific Library period for senior students. Also they had the permission to keep books with themselves till they want. They had to return books only during the time of examination. There were different sections in our library which were divided according to classes. The section for senior students mostly consisted of reference books. But they too had an option of issuing novels and other story books. Although due to study pressure there was hardly any student who issued novels or story books. Everyone issued references.

metaphysics by Kant and hume essays

metaphysics by Kant and hume essays Metaphysics as Addressed by Kant and Hume In the Prolegomena, Kant states that reading David Hume, "awakened him from his dogmatic slumber." It was Hume's An Inquiry Concerning Human Understanding that made Kant aware of issues and prejudices in his life that he had previously been unaware of. This further prompted Kant to respond to Hume with his own analysis on the theory of metaphysics. Kant did not feel that Hume dealt with these matters adequately and resolved to pick up where Hume had left off, specifically addressing the question of whether metaphysics as a science is possible. Hume basically asserted in his writings that metaphysics, as a science, is not possible. He specifically drew on the theory of "causality", which is the attempt by people to rationalize situations. These rationalizations deal with the experience of cause and effect. People tend to attribute patterns to things according to their cause and effect. For example, gravity causes the anything that goes up to come down- we have become so used to this principle that we have made a very definitive statement on the subject. Hume however, attacks this principle by claiming that we have not experienced every instance of this matter. It is not that it must come down, but that it happens to come down. He believed that any "all" or "must" statement is not reinforced through reason but through repetition. Because Hume feels this way, he then concludes that metaphysics is not possible. Hume's writing posed an interesting starting off point for Kant's theories. As said before, Kant attributes Hume's writing with waking him from his "dogmatic slumber." He recognizes both Hume's intelligence and the validity of his statements. However, he does not totally agree with all of Hume's theories and attempts to discredit them in the Prolegomena. The basic question that Hume brings up and tries to answer is whether metaphysics is possible as a science- or to put...

Banking Scenario in Bangladesh Essay Example

Banking Scenario in Bangladesh Essay Example Banking Scenario in Bangladesh Essay Banking Scenario in Bangladesh Essay Rahmanir Rahim An Empirical Study of Performance of Islamic Banks in Bangladesh with special reference to Islami Bank Bangladesh Ltd By Shah Abdul Hannan, Former Secretary, Ministry of Finance, Government of Bangladesh and M. Fariduddin Ahmad Deputy Executive President Islami Bank Bangladesh Limited ________________________________________________ SECTION – I Banking Scenario in Bangladesh When Bangladesh came into existence on the 16th December, 1971, the banking sector of Bangladesh was in a total disarray. With the exception of two local banks incorporated in then East Pakistan, all the bigger local banks became inoperational.. Starting with such a humble   condition, the Banking Sector of Bangladesh has grown to a great extent. At present there are 49 Banks in Bangladesh. The structure of Banking in Bangladesh is as under: 1. Nationalized Commercial Banks 4 2. Specialized Banks 5 3. Private Sector Commercial Banks : a) Conventional Banks25 b) Islamic Banks 5 4. Foreign Commercial Banks a) Conventional Banks 9 b) Islamic Banks 1 Total49 - SECTION – II Genesis of Islamic Banking in Bangladesh In August 1974, Bangladesh signed the Charter of Islamic Development Bank and committed itself to reorganize its economic and financial system as per Islamic Shariah. In January 1981, the then President of People’s Republic of Bangladesh while addressing the 3rd Islamic Summit Conference held at Makkah and Taif suggested, â€Å"The Islamic countries should develop a separate banki ng system of their own in order to facilitate their trade and commerce. This statement of the President indicated favourable attitude of the Government of the People’s Republic of Bangladesh towards establishing Islamic banks and financial institutions in the country. Earlier in November 1980, Bangladesh Bank, the country’s Central Bank, sent a representative to study the working of several Islamic banks abroad. In November 1982, a delegation of IDB visited Bangladesh and showed keen interest to participate in establishing a joint venture Islamic Bank in the private sector. They found a lot of work had already been done and Islamic banking was in a ready form for immediate introduction. Two professional bodies Islamic Economics Research Bureau (IERB) and Bangladesh Islamic Bankers Association (BIBA) made significant contributions towards introduction of Islamic banking in the country. They came forward to provide training on Islamic banking to top bankers and economists to fill-up the vacuum of leadership for the future Islamic banks n Bangladesh. They also held seminars, symposia and workshops on Islamic economics and banking throughout the country to mobilise public opinion in favour of Islamic banking. Their professional activities were reinforced by a number of Muslim entrepreneurs working under the aegis of then Muslim Businessmen Society (now reorganised as Industrialist Businessmen Association). The body concentrated mainly in mobilising equity capital for the emerging Islamic bank. At last, the long drawn struggle to establish an Islamic bank in Bangladesh became a reality and Islami Bank Bangladesh Limited was established on 30th March, 1983 in which 19 Bangladeshi national, 4 Bangladeshi institutions and 11 banks, financial institutions and government bodies of the Middle East and Europe including IDB and two eminent personalities of the Kingdom of Saudi Arabia joined hands to make the dream a reality. Later, other 5 Islamic Banks were established in the country. 7 conventional banks have so far established Islamic Banking branches in some major cities. SECTION – III Comparative Position of Islamic Banking and Conventional Banking in Bangladesh. Deposits: Total deposits of the Banking Sector of Bangladesh stood at Taka 1,415,877 million as on 30. 06. 2005 of which Islamic Bank mobilized deposit to the tune of Taka 3031897 million i. e. their share in total deposits of the Banking system is 11. 98%. A detail analysis of deposits of all Banks vis-a-vis deposits of Islamic Banks by Type of Accounts is given in the following Table: Table – I Deposits distributed by Types of Accounts Amount in Million Taka (US $ 1=Taka 67. 50) |Sl. No. |Types of Accounts |All Banks |Islamic Banks |Share of Islamic banks (%) | | | |Nos. of Accounts |Amount | | | |Nos. of Accounts |% of total | | | |Nos. f Accounts | | |a) Long Term |91,664 |1. 11 | | |Project Finance | | | | |Amount |% of total |Amount |% of total | | |Urban |999,742 |89. 8 |152,146 |97. 27 |15. 22 | |Rural |117,579 |10. 52 |4,264 |2. 73 |3. 63 | | Total |1,117,321 |100 |156,410 |100 | | [pic] [pic] Islamic Banks All Banks Advances classified by Geographical Areas The Islamic Banks In Bangladesh could not yet make much headway in providing finance to rural areas as their operations are still limited to urban areas. The Islami Bank Bangladesh Limited, the first established Islamic Bank in Bangladesh, has reached to 4560 villages (out of 68,000 villages) of the country through their 101 branches and have so far provided finance amounting to Taka 4362 million to 164,116 rural poors, the recovery rate of which is 99%. Section – IV Operations of Islamic Banking in Conventional Banks In Bangladesh 6 conventional Banks namely, Prime Bank Limited, Dhaka Bank Limited, City Bank Limited, Premier Bank Limited, South East Bank Limited, Jamuna Bank Limited have taken the initiative of providing Islamic banking facilities within their existing set-up. They have established full-fledged Islamic branches and mobilized substantial amount of deposit, making investment and providing all types of banking services under Islamic modes. A Bank namely ‘Exim Bank’ was incorporated in 2002 as a conventional Bank but subsequently converted to an Islamic Bank. More conventional Banks are contemplating to establish Islamic branches in the near future. The above Banks have formed Shariah Council to oversee the operations of their Islamic Branches and they are also member of the Central Shariah Board for Islamic Banks of Bangladesh. The growth trend of deposit and investment of Islamic branches of the above 6 conventional Banks is highly satisfactory. Section – V Evaluation of Performance of Islamic Banks: Tools Instruments employed. 1. 00Concept and definition of Islamic Banking: General Secretariat of the OIC defined Islamic Banking as An Islamic Bank is a financial institution whose statutes, rules and procedures expressly state its commitment to the principles of Islamic Shariah and to the banning of the receipt payment of interest on any of its operations. 6. 02Modes of Deposit: Deposits are accepted by the Islamic Banks under the following Modes: 6. 02. 1  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Al-Wadeeah: The word Al-Wadeeah has been derived form the Arabic word Wadyun which means to keep/to deposit to give up, leave off etc. In Islamic Banking, the principle of Al-Wadeeah means, the Bank receives money from the clients for safe-custody with the condition to return the money on demand by the customer. Current Accounts are opened under this principle. Depositors authorise the Bank to use the money at Banks risk. The customer is not entitled to receive any benefit from the Bank. 6. 02. 2  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Al-Mudarabah: The word Mudaraba has been derived from the Arabic word Darb/Darbun which means movement to earn rahmat (Munafa) of Allah. Mudaraba is a form of partnership where one of the contracting parties called the Shahib-al-Maal or the Rabb-ul-Maal (the financier) provides a specified amount of capital and acts like a sleeping or a dormant partner while the other party, called the Mudarib (entrepreneur), provides the entrepreneurship and management for currying on any venture, trade, industry or service with the objectives of earning profits. The Mudarib is in the nature of a trustee as well as an agent of the business. Profit is distributed as per preagreed ratio while the loss is entirely borne by the Shahib-al-Maal. . 02. 3Al Mudarabah deposit Products: There can be many types of Mudarabah deposit products. The following are the title of some of the Mudarabah Products so far introduced by the Islamic Banks in Bangladesh:  ¦Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Mudarabah Special Notice Deposit  ¦Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Mudarabah Savings Deposit  ¦Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Mudarabah Term Deposit  ¦Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Mudarabah Savings Bonds  ¦Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Mudarabah Special Savings (Pension)  ¦Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Mudarabah Monthly Profit Deposit Scheme  ¦Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Mudarabah Muhar Savings   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Mudarabah Cash Waqf Deposit  ¦Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Mudarabah Hajj Deposit. 6. 03Modes of Investment: Investment can be made by the Islamic Banks under the following Modes: However, the Islamic Banks in Bangladesh have so far introduced Bai-Murabaha, Bai-Muajjal, Bai-Salam Hire purchase under Shirkatul Meelk Modes. 6. 03. 1  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Profit Loss Sharing Mode ?  Ã‚  Ã‚  Ã‚  Ã‚   Shirkat/Musharaka The term refers to a financing technique adopted by Islamic Banks. It is an agreement under which the Islamic bank provides funds which are mingled with the funds of the business enterprise and others. All providers of capital are entitled to participate in the management but not necessarily required to do so. The profit is distributed among the partners in pre-determined ratios, while the loss is borne by each partner in proportion to his contribution. 6. 03. 2  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Profit sharing Loss bearing Mode: ?  Ã‚  Ã‚  Ã‚  Ã‚   Al-Mudarabah The word Mudaraba has been derived from the Arabic word Darb/Darbun which means movement to earn rahmat (Munafa) of Allah. Mudaraba is a form of partnership where one of the contracting points called the Shahib-al-Maal or the Rabb-ul-Maal (the financier) provides a specified amount of capital and acts like a sleeping a dormant partner while the other party, called the Mudarib (entrepreneur), provides the entrepreneurship and management for caring on any venture, trade, industry or service with the objectives of earning profits. The Mudarib is in the nature of a trustee as well as an agent of the business. Profit in distributed as per preagreed ratio while the loss is entirely borne by the Shahib-al-Maal. . 03. 3  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Bai-Mode (Buying Selling): ?  Ã‚  Ã‚  Ã‚  Ã‚   Bai-Murabaha: Literally, sale on profit. Technically, a contract of sale in which the seller declares his cost and profit. This has been adopted as a mode of financing by a number of Islamic Banks. As a financing technique, it involves a request by the client to the bank to purchase a certain item for him. The bank does that for a definite profit over the cost which is settled in advance. ?  Ã‚  Ã‚  Ã‚  Ã‚   Bai-Muajjal: Literally, a credit sale. Technically, a financing technique adopted by Islamic Banks. It is a contract in which the seller allows the buyer to pay the price of a commodity at a future date in a lump sum or in installments. The price fixed for the commodity in such a transaction can be the same as the spot price or higher or lower than the spot price. ?  Ã‚  Ã‚  Ã‚  Ã‚   Bai-Salam: This term refers to advance payment for goods which are to be delivered later. Normally, no sale can be effected unless the goods are in existence at the time of the bargain. But this type of sale forms and exception, to the general rule provided the goods are defined and the date of delivery is fixed. The objects of this type of sale are mainly tangible things but exclude gold or silver as these are regarded as monetary values. Barring these, bai-salam covers almost all things which are capable of being definitely described as to quantity, quality and workmanship. One of the conditions of this type of contract is advance payment; the parties cannot reserve their option of rescinding it but the option of revoking it on account of a defect in the subject matter is allowed. It is also applied to a mode of financing adopted by Islamic Banks. It is usually pplied in the agricultural sector where the bank advances money for various inputs to receive a share in the crop, which the bank sells in the market. ?  Ã‚  Ã‚  Ã‚  Ã‚   Bai-Ishtisna: Istisnaa is a sale contract by which al-sani (the seller) on the basis of the order placed by al-mustasni (the buyer) after having manufactured or otherwise acquired al-masnoo (the goods) as per specification sells the same to al-mustasni for an agre ed upon price and method of settlement whether that be in advance, by instalments or deferred to a specific time. It is a condition of Istisnaa contract that al-sani should provide either the raw material or the labour.   Ã‚  Ã‚  Ã‚  Ã‚   Bai-Istijrar: Istijrar means purchasing goods from time to time in different quantities. In Islamic jurisprudence Istijrar is an agreement where a buyer purchases something from time to time; each time there is no offer or acceptance or bargain. There is one master agreement where all terms and conditions are finalized. There are two types of Istijrar:   Ã‚  Ã‚  Whereby the price is determined after all transactions of purchase are complete.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Whereby the price is determined in advances but the purchase is executed from time to time. The first kind is relevant with the Islamic mode of financing. This kind is permissible with certain conditions. a. In the case where the seller discloses the price of goods at the time of each transaction; the sale becomes valid only when the buyer possess the goods. The amount is paid after all transactions have been completed. b. If the seller does not disclose each and every time to the buyer the price of the subject matter, but the contractors know that it is being sold on market value and the market value is specified and determined in such a manner that it does not vary and it does not lead to differences of the contractors. . If at the time of possession, the price of subject matter was unknown or contractors agree that whatever the price shall be, the sale will be executed. However, if there is significant difference in the market price and the agreed price, it may cause conflict. In such a case, at the time of possession, the sale will not be valid. However, at the time of settlement of the payment, the sale will be valid. ?  Ã‚  Ã‚  Ã‚  Ã‚   Bai-Musawamah: It refers to normal sale in which cost price is not known. ?  Ã‚  Ã‚  Ã‚  Ã‚   Bai-Surf: It refers to the sale of gold, silver and currency.   Ã‚  Ã‚  Ã‚  Ã‚   Bai-Muqayada: It refers to barter sale excluding currency sale. 6. 03. 4Rent Sharing Mode: ?  Ã‚  Ã‚  Ã‚  Ã‚   Ijarah (Lease) The term Ijarah has been derived from the Arabic works ‘’ (Ajr) and ‘ ’ (Ujrat) which means consideration, return, wages or rent. This is really the exchange value or consideration, return, wages, rent of service of an asset. Ijarah has been defined as a contract between two parties, the Hiree and Hirer where the Hirer enjoys or reaps a specific service or benefit against a specified consideration or rent from the asset owned by the Hiree. It is a hire agreement under which a certain asset is hired out by the Hiree to a Hirer against fixed rent or rentals for a specified period. ?  Ã‚  Ã‚  Ã‚  Ã‚   Ijarah wa iqtina (Hire Purchase): This term refers to a mode of financing adopted by Islamic Banks. It is a contract under which the Islamic Bank finances equipment, building or other facility for the client against an agreed rental together with an undertaking from the client to purchase the equipment or the facility. The rental as well as the purchase price is fixed in such a manner that the bank ets back its principal sum along with some profit which is usually determined in advance. ?  Ã‚  Ã‚  Ã‚  Ã‚   Hire purchase under Shirkatul Melk (HPSM): Hire Purchase under Shirkatul Melk is a special type of contract which has been developed through practice. Actually, it is a combination of three contracts viz: Shirkat, Ijarah and Sale. Shirkat means partnership. Shirkatul Melk means share in ownership. When two or more pers ons supply equity, purchase an asset, own the same jointly, and share the benefit as per agreement and bear the loss in proportion to their respective equity, the contract is called Shirkatul Melk contract. . 03. 5Production Sharing Mode: ?  Ã‚  Ã‚  Ã‚  Ã‚   Mozarah: It is a contract in which one person agrees to Till the land of the other person in return for a part of the produce of the land. ?  Ã‚  Ã‚  Ã‚  Ã‚   Musaqah: A contract in which the owner of the garden shares its produce with another person in return for his services in irrigating the garden. 6. 03. 6Quard-al-Hasana: A virtuous loan. A loan with the stipulation to return the principal sum in the futurewithout any increase. 7. 00Steps in the investment operations: ?  Ã‚  Ã‚  Ã‚  Ã‚   Induction of the client ?  Ã‚  Ã‚  Ã‚  Ã‚   Application ?  Ã‚  Ã‚  Ã‚  Ã‚   Processing Appraisal   Ã‚  Ã‚  Ã‚  Ã‚   Sanction ?  Ã‚  Ã‚  Ã‚  Ã‚   Documentation ?  Ã‚  Ã‚  Ã‚  Ã‚   Disbursement ?  Ã‚  Ã‚  Ã‚  Ã‚   Monitorin g, End-use, Supervision Recovery 8. 00Fixation of sale price of Bai-Murabaha goods: A. Purchase price of the Goods Plus (+) B. Other expenditure incurred by the Bank in connection with the purchase, transportation and storage before sale of the goods to the client viz: i)Conveyance ii)Commission, if any, paid to agent iii)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Cost of remittance of Fund iv)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Transportation cost v)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Insurance vi)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Godown rent ii)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Other expenses if any. C. Total Cost Price (A+B) D. Profit Mark up E. Sale Price 8. 01Fixation of Rent under Rent Sharing Mode: 8. 01. 1  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Diminishing Balance Method: In this method the installments are not equal. Principal installment remains equal. Rent unequal i. e. calculated on t he outstanding principal. As at the initial stage principal outstanding remain higher so rent is higher which make the installment size larger. 8. 01. 2  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Equal Installment Method (Annuity Method): In this method the installments are equal. Principal Rent are unequal. Rent is calculated on the outstanding principal and the rest amount of installment is adjusted against Principal. At the initial stage principal outstanding remain higher so rent is higher anddecreased gradually. At the initial stage principal adjustment is less and increases gradually. The main difference between the Diminishing Balance Method and Annuity Method is that the Principal adjustment is not equal. As at the initial stage Principal adjustment is less the total Rent in this method is more than the Diminishing Balance Method. 8. 01.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Equal Installment Method (Equal Rent Method): In this method the installments are equal. Principal Rent remain equal. Rent is calculated for the whole period of Investment considering diminishing balance of Principal equally distributed all over the repayment period. Though the total rent on the investment in this case is equal to that of Diminishi ng Balance Method but the effective R. R. is less due to opportunity loss on the calculated but not realized rent for the 1st half of the repayment period. 9. 00Nature of Shariah Lapses generally occur in Investment Operations: . 01  Ã‚   Cash facilities are allowed to the client instead of investment through buying and selling of goods. 9. 02  Ã‚   Fresh investments are allowed for adjustment of previous liability of the client without proper buying and selling of goods. 9. 03  Ã‚   Letter of authority is not obtained from the client in case of investment against Bai-Murabaha (Post Import) and Bai-Murabaha under dealership license in the name of Investment Clients. 9. 04  Ã‚   Rent/Profit is charged and recovered for the gestation period under Hire Purchase Sunder Shirkatul Melk investment. . 05  Ã‚   Pre-fixed profit is recovered in the Pre-shipment Musharaka Investment instead of actual profit. 9. 06  Ã‚   Cash Memo obtained in the name of Client instead of in the nam e of the Bank. 9. 07  Ã‚   Cash Memo is not at all obtained. 9. 08  Ã‚   Agreements are kept blank and undated. 9. 09  Ã‚   Back dated/Post Dated cash Memo is obtained. 9. 10  Ã‚   The application for Payment Order/Demand Draft/T. T. etc. is signed by the Client instead of signing the same by the Bank. 9. 11  Ã‚   The amount of disbursement does not agree with the amount of Cash Memo. 9. 2  Ã‚   Goods are received directly by the Client instead of receipt of goods first by the Bank and then by the Client. 9. 13  Ã‚   Documents of receiving goods by the Branch are not available in the Branch record: 9. 14  Ã‚   Bai-Muajjal investment is allowed in case of Stock-lot items. 10. 00 Distribution of Profit to Mudaraba Depositors: The principles of calculation and distribution of profit to Mudaraba Depositors generally followed by different Islami Banks are as under: 10. 01. Mudaraba Depositors share income derived from investment of their fund. 0. 02. Mudaraba Depositors d o not share any income derived from miscellaneous banking services where use of their fund is not involved, such as commission, exchange, service charges and other fees realised by the Bank. 10. 03. Mudaraba Deposits get priority in the matters of investment over Banks equity and other cost free funds. 10. 04. The gross income derived from investments during the accounting year is, at first, allocated to Mudaraba Deposits and Equity cost-free-funds according to their proportion in the total investment. 10. 05. The share of gross investment income of Mudaraba Deposits as worked out in terms of principle shown against serial No 10. 04 is distributed as under: a) Bank retains a preagreed portion (say 20%) as management fee for managing the investment. b) Bank retains another preagreed portion (say 15%) for off-setting investment loss or with a view to maintaining a general level of return on Mudaraba Deposits. c) The remaining portion (say 65%) is distributed to Mudaraba Depositors applying weightages. 10. 06. Let us suppose that an Islami Bank applies the following weightages to Mudaraba Deposits. ) Mudaraba Hajj Savings Deposit 110% b) Mudaraba Term Deposits36 Months100% 24 98% 12 96% 06 92% 03 88% c) Mudaraba Savings 75% d) Mudaraba Short Notice 55% 10. 07. On the basis of the above principles, let us work out the rates of profit using the information and figures given below: a) Total InvestmentTk. 1000 b) Total Investment IncomeTk. 150 c) Total fund employed i) Banks equity and Al-Wadeea h Deposits Tk. 200 ii) Mudaraba DepositsTk. 800 Tk. 1000 Therefore the share of investment income of Mudaraba Deposit will be (150 ( 1000 ( 800) Tk. 120. 00 Less: ) 20% Management Fee Tk. 24. 00 b) 15% Loss Off-setting Reserve Tk. 18. 00 Tk. 42. 00 Distributable Investment Income Tk. 78. 00 |Sl. No |Type of Mudaraba |Yearly Product |Weightage |Weighted Product |Share of | | |Deposit | | | |Distributable | | | | | | |Profit | 1. 00Foreign Trade Foreign Exchange business under Islamic Framework: Musharaka can be used for Import Financing as well. There are two types of bank charges on the letter of credit provided to the importer: 11. 01Import Financing a. Service charges for opening an LC b. Interest charged on LCs, which are not opened on full margin. Collecting service charges for this purpose is allowed, but as interest cannot be charged in any case, experts have proposed two methods for financing LCs: a. Based on Musharakah/Mudarabah. b. Based on Murabaha. 1. 01. 1Musharakah/Mud arabah: This is the best substitute for opening the LC. The Bank and the importer can make an agreement of Musharakah or Mudarabah modes before opening the LC. If the LC is being opened at zero margin then an agreement of Mudarabah can be made, in which the bank will become Rab-ul-Mall and the importer Mudarib. The bank will own the goods that are being imported and the profit will be distributed according to the agreement. If the LC is being opened with a margin then a Musharakah agreement can be made. The bank will pay the remaining amount and the goods that are being imported will be owned by both of them according to their share of investment. The bank and the importer, with their mutual consent can also include a condition in the agreement, whereby; Musharaka or Mudarabah will end after a certain time period even if the goods are not sold. In such a case, the importer will purchase the Banks share at the market price. 11. 01. 2Bai-Murabahah: At present Islamic banks are using Bai-Murabaha, to finance LC. These banks themselves import the required goods and then sell these goods to the importer on Bai-Murabahah agreement. Bai-Murabahah financing requires the bank and the importer to sign at least two agreements separately; one for the purchase of the goods, and the other for appointing the importer as the agent of the bank (agency agreement). Once these two agreements are signed, the importer can negotiate and finalize all terms and conditions with the exporter on behalf of the bank. 11. 02Export Financing: A bank plays two very important roles in Exports. It acts as a negotiating bank and charges a fee for this purpose, which is allowed in Shariah. Secondly, it provides export-financing facility to the exporters and charge interest on this service. These services are of two types: a. Pre shipment financing b. Post shipment financing As interest cannot be charged in any case, experts have proposed certain methods for financing exports. 11. 02. 1Pre Shipment Financing: Pre shipment financing needs can be fulfilled by two methods a. Musharaka/Mudarabah b. Bai-Salam The most appropriate method for financing exports is Musharakah or Mudarabah. Bank and exporter can make an agreement of Mudarabah provided that the exporter is not investing; other wise Musharakah agreement can be made. Agreement in such case will be easy, as cost and expected profit is known. The exporter will manufacture or purchase goods and the profit obtained by exporting it will be distributed between them according to the predefined ratio. A problem that can be encountered by the bank is that if the exporter is not able to deliver the goods according to the terms and conditions of the importer, then the importer can refuse to accept the goods, and in this case exporters bank will ultimately suffer. This problem can be solved by including a condition in Mudarabah or Musharakah agreement that, if exporter violates the terms and conditions of export agreement then the Bank will not be responsible for any loss which arises due to this negligence. This condition is allowed in Shariah as the Rabb-ul-mal is not responsible for any loss that arises due to the negligence of Mudarib. 11. 02. 2 Bai-Salam: Bai-Salam is being used in Islamic Banks for export financing. Banks purchases goods that are to be exported at price that is less than the price agreed between the exporter and the importer. It then exports goods at the original price and thus earns profit. Bai-Salam financing requires bank and exporter to sign at least two agreements separately, one for the purchase of goods and the other for appointing the exporter as the agent of the bank (that is agency agreement). Once these two agreement are signed, the exporter can negotiate and finanlize all the terms and conditions with the importer on behalf of the bank. Post Shipment Financing: Post shipment finance is similar to the discounting of the bill of exchange. Its alternate Shariah compliant procedure is discussed below: The exporter with the bill of exchange can appoint the bank as his agent to collect receivable on his behalf. The bank can charge a fee for this service and can provide Quard-al-Hasana to the exporter, which is equal to the amount of the bill, and the exporter will give his consent to the bank that it can keep the amount received from the bill as a payment of the loan. Here two processes are separated, and thus two agreements will be made. One will authorize the bank to collect the bill amount on his behalf as an agent, for which he will charge a particular fee. The second agreement will provide Quard-al-Hasana to the exporter, and authorize the bank for keeping the amount received through bill as a payment for Quard-al-Hasana. Section – VII National International ratings of the Pioneer Islamic Bank â€Å"Islami Bank Bangladesh Limited†. IBBLs past performances have been evaluated by Bangladesh Bank, several credit rating agencies home abroad and by the local press. International Press â€Å"In the midst of a difficult Banking system known to be plagued by high non-performing loans (NPLs), one could easily conclude that it would be difficult to find a bank that is different from norm. However, IBBL provides a refreshing change and is, thus, a pleasant surprise. Although it does not command the market share as the 4 public sector banks, IBBL, which claims to have little interference in lending from the government, has nonetheless, managed to find a niche market of its own-says the ‘BANK WATCH’ a New York based international Credit Rating Agency in its January 30, 1998 issue. â€Å"As a market leader offering banking services based on the Islamic rule of Shariah, IBBLs profitability trend has been quite impressive. The Banks ability to keep its return on asset (ROA) well above the industrys average, reflected its resilience to possible shocks in the banking system. Concerns over massive NPLs and under provisioning are common amongst local banks. But this seems well resolved in IBBL. IBBLs good performance and solid capital base have indeed provided refreshing change found within a banking system saddled and held back by huge NPLs† the above agency continued to comment in the same ssue. National Press â€Å"It is one of a few local banks according to CAMEL (Capital, Assets, Management, Earnings Liquidity) rating made by the Bangladesh Bank. It holds the highest amount of liquidity among all banks and its ability to keep return on assets at 1. 07 percent is well above the banking sectors average of 0. 33 percent†- The Financial Express, Dhaka commented in its issue of May 28,1998. The Holiday† in its 29th August, 1997 issue carried out a report under the heading â€Å"Setting a precedence of sound banking† and commented â€Å"While the countrys banking system is burdened with bad debt portfolios and also suffers from a liquidity shortage, the Islami Bank Bangladesh Ltd. (IBBL) has created a unique precedence by improving its reserve and deposit positions substantially, making handsome profits, and offering attractive dividends to its share holders and depositors. † IBBLs World rating As per Bankers Almanac (2006 edition) published by the Reed Business Information, Windsor Court, England, IBBLs world Rank is 1620 among 3000+ banks selected by them and country rank 5 among 49 Banks. CRISL, a Joint Venture credit rating Agency, operating in Bangladesh rated IBBL ‘ST-I’, highest grade which means highest certainty of timely payment. Short term liquidity including internal fund generation is very strong and access to alternative sources of funds is outstanding. Safety is almost like risk free government short term obligations. Success Stories of Islamic Bank Bangladesh Limited: The IBBL has many success stories of achievements. These are summarised below : One :IBBL is the pioneer institution for introduction of Islamic Banking in Bangladesh. Two :The success of IBBL has imbibed other sponsors at home and abroad to establish Islamic Banking in Bangladesh. Four national, one international Islamic banks have since been established in the country. 6 private sector traditional banks have also established several Islamic Banking branches. Several other existing traditional banks have also expressed their intention to introduce Islamic Banking. Three:IBBL has successfully mobilised deposits from a section of people who hither-to-before did not make any deposit with interest based banks. Four :The Islamic Banking products which are offered by IBBL through its 169 branches located at important centres all over the country and spontaneous acceptance of those products by the people proves the superiority of Islamic banking. Five :IBBLs market share of deposit investment and ancillary business is steadily increasing. Six :IBBL, though still a tiny bank, handles more than 10% of countrys export and import trade. Seven:Among the contemporary commercial Banks IBBLs position is first in respect of mobilisation of deposit, deployment of fund and earning profit. Eight:Investment in industrial sector occupies about 38% of IBBLs investment portfolio. This is a unique example of industrial finance by a commercial Bank. Nine:More than 2,00,000 workers are employed in the industrial projects financed by IBBL. IBBL has thus made significant contribution to solving unemployment problem of the country. Ten:Dhaka- the capital of Bangladesh being a Mega city- has acute transport problem. IBBL has joined hands with an enterprising group to introduce a fleet of Premium Bus service which has attracted the attention of all section of the people and mitigated transportation problem of the city to some extent. Eleven:IBBL has introduced several other welfare oriented investment schemes, such as Small Transport Investment Scheme, Small Business Investment Scheme, Agriculture Implements Investment Scheme, Poultry Investment Scheme, Household Durable Investment Scheme, Housing Investment Scheme etc. Twelve :IBBL launched a Rural Development Scheme for providing finance to drown trodden section of the populace an area where no other Commercial Bank has extended any finance. IBBLs mission is to reach to all 68,000 villages of the country as early as possible. Thirteen :IBBL has contributed 3000 million Taka as income tax to the Government Exchequer on its net profit over the last 22 years. Fourteen :At the initiative and drive of IBBL, several Universities in Bangladesh have introduced Courses on Islamic Banking and finance. Fifteen :IBBL has organised a good number of national and international Seminars on Islamic Banking and Economics. Importantly, IBBL sponsored a Seminar at Dhaka with a view to forming an Islamic Common Market. Sixteen :IBBL has earned reputation in the country as a corruption free Institution. Seventeen :IBBL is held in high esteem in the banking circle as a good managed bank. Eighteen :Under the leadership of IBBL, Bangladesh Association of Banks (BAB) has been formed. This is a platform to ventilate the stand-points on banking issues of the private sector banks. Nineteen :IBBL has established a foundation called ‘Islami Bank Foundation’ for carrying out social welfare activities. The foundation has taken up a number of schemes covering the whole of Bangladesh. A sum of Taka 1000 million has so far been spent in social welfare activities. Some important Schemes of the Foundation are Welfare Activities of Islami Bank Foudnation Income generating scheme The objective of this scheme is to encourage unemployed youths in nation building activities and to make them self reliant. This scheme has been taken up to train rural health workers and to fund poultry, pisci-culture, cottage industry, small trading, in addition to providing rickshaws, sewing machines etc. for income and employment generation. Educational Scheme Scholarship stipend are awarded to the poor and meritorious students under this scheme. Health Scheme This scheme has been taken up to establish child and maternity centres, charitable dispensaries, provide grants for medical treatment of the poor, install tube-wells for the supply of pure drinking water and build sanitary latrines in order to fulfill health needs of the rural people. Humanitarian Assistance Humanitarian assistance are provided to the poor, disabled persons, families affected by river erosion and for marriage of poor girls. Emergency Relief Operations Financial assistance to the people affected by natural calamities is provided under this scheme. Service Centre The Foundation has been establishing permanent service centres in coastal areas and off-shore islands to be used for the purpose of integrated social development as well as safe shelter during natural disaster. HRD Programme Under HRD programme, the foundation has established several Technical Training Centres for imparting vocational training and kindergarten Schools. Projects like mosque based income generating centres and prisoner rehabilitation projects are expected to be established in the near future. Assistance to Mosque Financial assistance for construction, extension and renovation of mosques are provided under this scheme. Sales Centre Foundation has established sales centres to encourage poor women folk for self employment and for marketing home made garments, handicrafts and other items produced by them. Islami Bank Hospital The Foundation has set up hospitals for providing modern medical treatment to all sections of the people at reasonable cost. By now, the Islami Bank Hospitals have earned good reputation in the society. Problems Specific to Islamic Banking in Bangladesh 1. Shortage of Supportive and Link Institutions Any system, however well integrated it may be, cannot thrive exclusively on its built-in elements. It has to depend on a number of link institutions and so is the case with Islamic banking. For identifying suitable projects, Islamic banking can profitably draw the services of economists, lawyers, insurance companies, management consultants, auditors and so on. They also need research and training forums in order to prompting entrepreneurship amongst their clients. Such support services properly oriented towards Islamic banking are yet to be developed in Bangladesh. 2. Lack of Organising Relationship with Foreign Banks Another important issue facing Islamic banks in Bangladesh is how to organise their relationships with foreign banks, and more generally, how to conduct international operations. This is, of course, an issue closely related to the creation of financial instruments, which would be simultaneously consistent with Islamic principles and acceptable to interest-based banks, including foreign banks. . Long-term Financing Islamic Banks stick very closely to the pricing policies of the government. They can not benefit from hidden costs and inputs, which elevate the level of prices by certain entrepreneurs without any justification. On the other hand, Islamic banks as financial institutions are even more directly affected by the failure of the projects they finance. This is because the built in security for getting back their funds, togeth er with their profits, is in the success of the project. Prospects of Islami Banking in Bangladesh Despite the above problems and shortcomings the Islamic Banks have the following further prospects to grow: a) Islamic bank investment portfolio can be diversified and extended for long term financing under Musharaka and Mudaraba. b) The clients of the Islamic Bank may be equipped with knowledge of Islamic banking through seminars and symposia. c) Islamic banks can develop unanimous Shariah Manual or guide lines for day to day consultation and clientele motivation. d) Islamic Banks can expand their network in the rural areas of Bangladesh. ) The research and development (R D) for Islamic Economics, Banking and Finance can be geared up. f) Co-operation among Islamic banks can be extended throughout the world. g) Muslim countries, who have established Islamic banks, if involve with international trade on Islamic principles, that would contribute to grow international transactions under interest-free system. This will further help developing an Islamic Common Market. h) The central ban ks of the Muslim Countries can help creation of environment for Islamic Banking with more responsibilities. ) Uniform accounting systems and standards already developed by the Accounting Auditing Organisation for Islamic Financial Institutions for providing consistency in accounting treatment of various operations and products of Islamic banks may be introduced by all concerned. j) New and ‘innovative’ products can be designed for financing on Profit and Loss sharing basis.