Wednesday, July 31, 2019
INTRODUCTION PART 1. 0 INTRODUCTION PART 1. 1 Origin of the Report This internship report entitled Ã¢â¬Å"Banking Practice & Guiding Laws thereof: NCC Bank Perspective. Ã¢â¬ has been started at the November 2011 under the instruction of our honorable intern supervisor & instructor Syed Shamsir Hossain. Asst. Vice President & Manager for the partial fulfillment of the requirement. 1. 2. Objectives of the report Main objective of the report is to analyze the Ã¢â¬Å"Banking Practice & Guiding Laws of NCC Bank Ltd. Moreover, the study also embodied the following specific objectives: 1)To study the existing operations/activities of General Banking Section 2)To study the existing operations/activities of foreign exchange section. 3)To study the existing operations/activities of loans and advance section. 1. 3 Methodology of the Study The methodological section of the study is designed as data collection: Methods of Data Collection The report was fully exploratory in nature. Data have be en collected from both primary and secondary sources.Primary sources of data Ã¢â¬ ¢Face to face conversation with the bank officers & staffs. Ã¢â¬ ¢Informal conversation with the clients Secondary sources of data Ã¢â¬ ¢Different manuals of NCC Bank Limited Ã¢â¬ ¢Different circulars of NCC Bank Limited Ã¢â¬ ¢Annual report of NCC Bank Limited, (2008-09-10) Ã¢â¬ ¢Prospectus of NCC Bank (2010) 1. 4 Limitation of the Report The present study was not out of limitations. But as an intern it was a great opportunity for me to know the banking activities of Bangladesh specially NCC Bank. Some constraints are appended bellow: The main constraint of the study is inadequate access to information, which has hampered the scope of analysis required for the study. As it is a new bank it could not start all its operation, it was unable to provide some formatted documents data for the study. ?Every organization has their own secrecy that is not revealed to others. While collecting data i. e. int erviewing the employees, they did not disclose much information for the sake of the confidentiality of the organization. ? Since the bank personals were very busy, they could provide me very little time. Another problem is that creates a lot of confusions regarding verification of data. In some cases more than one person were interviewed to clarify each concept as many of the bankers failed to provide clear-cut idea about the job they perform. AN OVERVIEW OF NATIONAL CREDIT AND COMMERCE BANK LTD. 2. 0 NATIONAL CREDIT AND COMMERCE BANK LTD. 2. 1 Introduction NCC Bank Limited is a new generation bank. It is a scheduled bank under private sector established under ambit of Bank Company Act, 1991 and incorporated as Public Limited company act, 1994 on 17th May 1993.Prior to conversion into a scheduled commercial bank; National Credit Limited (NCL) was incorporated as public limited investment company in Bangladesh on 18th November 1985. It made its journey with a modest beginning on 25th November 1985 at its registered office and first branch at 7-8 Motijheel Commercial Area, Dhaka-1000. The initial Authorized Capital of the company was 30 (Thirty) crore consisting of 30 (Thirty) lac. Ordinary share of Tk. 100/- each. A new opportunity in this field of financial activities was opened for the business.NCL made a careful journey and maintained its successive growth for few years with its qualified professional management under most unpredictable, unregulated, uncertainties and limitations. The emergence of NCC Bank Limited at the Juncture of liberalization of global economic activities, after the URUGUAY round has been an important event in the financial sector of Bangladesh. The experience of the prosperous force and the strategic operational policy is the option of the bank. The company philosophy, Ã¢â¬Å"A Bank with visionÃ¢â¬ has been precisely the essence of the legend of BankÃ¢â¬â¢s success. . 1. 1 NCC Bank- At Present Like clothes shops, candy shops, bake shops, food shops, NCCBL is not a Ã¢â¬Å"debt shopÃ¢â¬ the term being used by many to call the present say banks. It is now been called a modern bank that undertakes all its operation at international standard. Having standard its operation as a commercial bank in 1993, recording from some primary difficulties, NCC bank has now emerged as a major player in the financial sector. Listed in both Dhaka and Chittagong bourses since late 1999 with an IPO that raised the paid-up capital of the bank to Tk. 9 crore. Banks are the pillars of the financial system. Specially, in Bangladesh, the health of the banking system is very vital because the capital market is little developed here. As the banks are still the major sources of credit and exercise great influence on the financial system, it is extremely important that the countryÃ¢â¬â¢s banking systems should be in good health in the interest of investment activities, meeting the needs of all kinds of finance and related matters.Over the years, NCC bank has built itself as one of the pillars of BangladeshÃ¢â¬â¢s financial sector and is playing a pivotal role in the extending the role of the private sector of the economy. The bank has a strong branch network nation wide with 32 branches. i. 2. 1. 2 Exchange: NCCBL operates foreign exchange business promptly. There 13 branch deals with foreign exchange. 2. 1. 2 Nature of the business Mission of NCC bank We shall be the forefront of national economic development by: ?Anticipating business solutions required by all our customers everywhere and innovative supplying them beyond expectation. Setting industry benchmarks of world class standard delivering customer value through our comprehensive product range, customer service and all our activities building an exciting team-based working environment that will attract, develop and retain employees of exceptional ability who help celebrate the success of our business, of our customer and of national development. ?Mainta ining the highest ethical standards and a community responsibility worthy of a leading corporate citizen. ?Continuously improving productivity and profitability, and thereby enhancing shareholder value. . 1. 3 Vision To be in the front of national development by providing all the customers inspirational strength, dependable support and the most comprehensive range of business solution through our team of professional that work passionately to be outstanding in everything we do. 2. 1. 4 Goal of the Bank To share a significant portion of the banking sectorÃ¢â¬â¢s by utilizing available manpower and also state of the art technology for maximizing the shareholders wealth. i. Long Term Goal To maximize the wealth of the shareholders. ii. Short Term GoalTo earn satisfactory rate of return on investment by providing wide range of banking service. 2. 1. 5 Board of Directors At present there are 26 members in the Board of Director. Out of 26 members 23 of them are the sponsor of the shareh older and 3 of them are publicly nominated as the equity participants from capital market have included them. However the members are obliged to maintain annul general meeting and declare the dividend payout schedule on due time. Moreover, the committee selected by shareholders represents individual body that then looks after the periodic issue with the management and tries to solve the problem. . 1. 6 Management of NCC BANK For any financial and non-financial organization, Management is the most valuable and important resources of any kind of organization. And, a well-organize management provides the organization to reach its ultimate goal. Management means planning, organizing, staffing, directing and controlling of all financial and non-financial resources of an organization. Different aspects of management practice in NCC BANK planning, organizing, staffing, directing & controlling, human resources practices and recruitment finally. 2. 1. Features of NCCBL Bank is an intermediar y institute. Like other commercial bank NCCBL also has some special features. They are as follows: ii. Legal Entity: It is compulsory matter for a bank to achieve legal entity. The stronger legal entity leads to effective banking program. NCCBL has a strong legal entity. iii. Organizational Structure: NCCBL has a well-set organizational structure. Organizational structure is a precondition of effective banking activities. iv. Financial Solvency: Though NCCBL is a new bank, its ratio of liquidity is well and strong.So, the clients get greater confidence in the bank. v. Location of The Bank: Location is very useful for bank. The Head Office and the branches of NCCBL are located in the central point of the capital and the other district towns. vi. Relation with the Central Bank: As the NCCBL is the government-registered bank, so it maintains a friendly behavior with the Bangladesh Bank. vii. Security: the NCCBL is totally a secured bank. The clients of the bank get a heavy security on their deposit. viii. Management of the Bank: The executives and the officers of NCCBL are very experienced.Maximum executives are ex-government bank officers. NCC bank is a progressive commercial bank in privet sector in Bangladesh. It creates a new opportunities for its clients. It gives customized service and harmonious banker-client relationship. It contributes towards formation of national capital, growth of saving and investment in trade, commerce and industrial sectors. It provides different types of commercial banking and services to the customer of all strata in the society with in the stipulation laid down in the Bank Company Act 1991. Rules and regulations ramed by the Bangladesh bank from time to time. 2. 1. 8 Business Operation National Commerce and Credit Bank Limited emerged as bank in the country on 17th May 1993 out of a great turbulent situation encounter by set while National Credit Limited. However the institution survived the ordeals and come out as a full-fledge d commercial bank. The company raised its Authorized Capital to Tk. 750 million as per guidelines set out by the Bangladesh Bank. The paid up capital was fixed at Tk. 480. 48 million as against Tk. 429. 00 million. 2. 1. 9 Trade Finance and Correspondent BanksSuccessful companies today are fully aware that they need to be able to rely on the services of a bank that can handle international trade with a good hand. Ever since its conversion into a full Ã¢â¬âfledged bank in 1993, NCC bank has been an accomplished Ã¢â¬Å"Trade FinanceÃ¢â¬ bank. With a highly professional team experienced and competent professionals we are able to provide a wide range of services to companies engaged in international trade. NCC Bank has also positioned itself as an established correspondent bank. Through a worldwide network of 260 correspondent banks NCC Bank is present in all key areas of the globe.Our ambit of correspondent includes top ranking international banks with a global reach. 2. 1. 10. B ranches of NCCBL NCCBL has 87 (Eighty Seven) branches all over in Bangladesh. 2. 1. 11. Performance of the Bank The bank may sustain its strong image in the mind of the customers and shareholders as a leading financial institution despite serious competition from both local and foreign banks operating in the country. Sill they are increasing their profit. Its opening profit was Tk. 624. 94 million in 2003, which were Tk. 2371. 68 million after tax in 2010. 2. 1. 12 Authorize CapitalThe authorize capital of the bank is Tk. 10,000. 00 million in the year 2010. 2. 1. 13. Paid-up Capital The bank raises its paid-up capital from Tk. 480. 48 million to Tk. 4501. 25 million for 2002 to 2010. With the increase of paid-up capital the capital based of the bank has become strong. Reserve Fund and Other Reserves The reserve fund of the bank increased of Tk. 5771. 09 million in the year 2010 as against Tk. 4371. 62 million of previous year. 2. 1. 14 Corporate Mission Ã¢â¬ ¢To provide high quali ty financial services in export and import trade. Ã¢â¬ ¢To provide excellent quality Customer service. To maintain Corporate and business ethics. Ã¢â¬ ¢To become a trusted repository of customers' money and their financial advisor. Ã¢â¬ ¢To make our stock superior and rewarding to the customers/share holders. Ã¢â¬ ¢To display team spirit and professionalism. Ã¢â¬ ¢To have a Sound Capital Base. 2. 1. 15 Corporate Culture This bank is one of the most disciplined Banks with a distinctive corporate culture. Here we believe in shared meaning, shared understanding and shared sense making. Our people can see and understand events, activities, objects and situation in a distinctive way.They mould their manners and etiquette, character individually to suit the purpose of the Bank and the needs of the customers who are of paramount importance to us. The people in the Bank see themselves as a tight knit team/family that believes in working together for growth. The corporate culture we bel ong has not been imposed; it has rather been achieved through our corporate conduct. 2. 1. 16 SWOT Analysis SWOT analysis is the detailed study of an organizationÃ¢â¬â¢s exposure and potential in perspective of its strength, weakness, opportunity and threat.This facilitates the organization to make their existing line of performance and also foresee the future to improve their performance in comparison to their competitors. As though this tool, an organization can also study its current position, it can also be considered as an important tool for making changes in the strategic management of the organization. Strengths: Ã¢â¬âNCC BANK Limited has already established a favorable reputation in the banking industry of the country. It is one of the leading private sector commercial banks in Bangladesh. The bank has already shown a tremendous growth in the profits and deposits sector. NCC BANK has provided its banking service with a top leadership and management position. Ã¢â¬â NC C BANK Limited has already achieved a high growth rate accompanied by an impressive profit growth rate in 2001. The number of deposits and the loans and advances are also increasing rapidly. Ã¢â¬â NCC BANK has an interactive corporate culture. The working environment is very friendly, interactive and informal. And, there are no hidden barriers or boundaries while communicate between the superior and the employees. This corporate culture provides as a great motivation factor among the employees. NCC BANK has the reputation of being the provider of good quality services too its, potential customers. Weaknesses: Ã¢â¬âThe main important thing is that the bank has no clear mission statement and strategic plan. The bank doesnÃ¢â¬â¢t have any long-term strategies of whether it wants to focus on retail banking or become a corporate bank. The path of the future should be determined now with a strong feasible strategic plan. Ã¢â¬âThe bank failed to provide a strong quality-recruitm ent policy in the lower and some mid level position. As a result the services of the bank seem to be Deus in the present days. _The poor service quality has become a major problem for the bank. The quality of the service at NCC BANK is higher than the Dhaka Bank, NCC BANK or Dutch Bangla Bank etc. But the bank has to compete with the Multinational Bank located here. Ã¢â¬âSome of the job in NCC BANK has no growth or advancement path. So lack of motivation exists in persons filling those positions. This is a weakness of NCC BANK that it is having a group of unsatisfied employees. __In terms of promotional sector, NCC BANK has to more emphasize on that. They have to follow aggressive marketing campaign. _The default risks of all term loans have to be minimized in order to sustain in the financial market. Because of default risk the organization may become bankrupt. NCC BANK has to remain vigilant about this problem so that proactive strategies are taken to minimize this problem if n ot eliminate. Opportunities: Ã¢â¬âIn order to reduce the business risk, NCC BANK has to expand their business portfolio. The management can consider options of starting merchant banking or diversify into leasing and insurance sector. Ã¢â¬â The activity in the secondary financial market has direct impact on the primary financial market.Banks operate in the primary financial market. Investment in the secondary market governs the national economic activity. Activity in the national economy controls the business of the bank. Ã¢â¬âOpportunity in retail banking lies in the fact that the countryÃ¢â¬â¢s increased population is gradually learning to adopt consumer finance. The bulk of our population is middle class. Different types of retail lending products have great appeal to this class. So a wide variety of retail lending products has a very large and easily pregnable market. Ã¢â¬â A large number of private banks coming into the market in the recent time.In this competitive environment NCC BANK must expand its product line to enhance its sustainable competitive advantage. In that product line, they can introduce the ATM to compete with the local and the foreign bank. They can introduce credit card and debit card system for their potential customer. Ã¢â¬âIn addition of those things, NCC BANK can introduce special corporate scheme for the corporate customer or officer who have an income level higher from the service holder. At the same time, they can introduce scheme or loan for various service holders.And the scheme should be separate according to the professions, such as engineers, lawyers, doctors. Threats: Ã¢â¬âAll sustaining multinational banks and upcoming foreign and private banks pose significant threats to NCC BANK Limited. If that happens the intensity of competition will rise further and banks will have to develop strategies to compete against these local and foreign banks. Ã¢â¬âOther commercial banks are offering higher salary that may create problem for NCCBL to retain their experienced managers and executives. ? MAJOR PRODUCTS OF NCC BANK LTD. 3. 0 PRODUCTS OF NCC BANKBefore discussion about products of NCC Bank, we have to understand what bankÃ¢â¬â¢s products are. Bank is a service oriented industry and deals with various financial products and services for financial gains. Financial products and services products that a bank offers to its customers are mainly classified as under: a)Deposit Products to generate funds. b)Lending products for financial gains c)Money Transmission products d)International business products e)Special fee earning service3s f)social services products Products that are marketing by NCC Bank are as under 3. 1. 1.Deposit Products Deposit is the lifeblood of a bank. From the history and origin of the banking system we know that deposit collection is the main function of a bank. Accepting deposits Procedures of collecting deposit procedure are almost same in the entire bank and the b ranches as well. The deposits that are accepted by NCC BANK like other banks may be classified into: Ã¢â¬ ¢Current Deposit Ã¢â¬ ¢Short term deposit Ã¢â¬ ¢Saving Deposit Ã¢â¬ ¢Fixed deposit Ã¢â¬ ¢Special Saving Scheme Deposit (SSS) 3. 1. 2. Lending Products Bank has its own principle about the credit sanctioned or loan to the ustomers, but lending product of a bank or of a branch is equal important to verify the outstanding at the end of any fiscal year. Every bank pays special attention about their lending products, because these products are handed over on a regular basis. Ã¢â¬ ¢Continuous Loan a. Secured Overdraft against Financial Obligation [SOD (FO)] Advances allowed to individual/firms against financial obligation (i. e. lien of FDR/PSP/BSP/Insurance Policy etc. ) and against assignment of works order for execution of contractual works fall under this head. It is a continuous advance facility.By this agreement, the banker allows his customer to overdraft his current acco unt up to his credit limits sanctioned by the bank. The interest is charged on the amount, which he withdraws, not on the sanctioned amount. NCC BANK sanctions SOD against different security. b. Secured Overdraft against Work order/ Real Estate etc [SOD (G)] Advances allowed against assignment of work order or execution of contractual works falls under this head. This advance is generally allowed for a definite period and specific purpose i. e. it is not a continuous credit. It falls under the category Ã¢â¬Å"othersÃ¢â¬ . c. Cash Credit (Hypothecation)Advances allowed to individual /firm for trading as well as wholesale purpose or to industries to meet up the working capital requirements against hypothecation of goods as primary security fall under this type of lending. It is a continuous credit. It is allowed under the category (i) Ã¢â¬Å"Commercial LendingÃ¢â¬ when the customer is other than a industry and (ii) Working Capital when the customer is an industry. d. Cash Credit (Pledge) Financial accommodations to individual / firm for trading as well as sole-sale purpose or to industries as working capital against pledge of goods as primary security fall under this head on advance.It is also a continuous credit and like the above allowed under the categories (i) Ã¢â¬Å"Commercial LendingÃ¢â¬ and (ii) Ã¢â¬Å"Working CapitalÃ¢â¬ . e. Export Cash Credit (ECC) Financial accommodation allowed to a party for export of goods falls under this head and is categorized as Ã¢â¬Å"Export Credit,Ã¢â¬ The advances must be liquidated out of export proceeds within 180 days. Ã¢â¬ ¢Demand Loan Demand Loan: (Forced LIM, BLC, PAD, IBP etc). Overdue period will be accounted from the day following the date of expiry of such loan.? Less than 6 months ? 6 months or more but less than 9 months 9 months or more but less than 12 months ?More than 12 monthsUnclassified Sub-standard Doubtful Bad/loss 1% 20% 50% 100% a. Loan General Short term, Medium term & Long term loans al lowed to individual /firm /industries for a specific purpose but for a definite period and generally repayable by installments fall under this head . this type of lending are mainly allowed to accommodate financing under the category (a) Large & Medium Scale industry and (b) Small & Cottage Industry . Very term financing for (a) Agriculture & (b) Others are also included here . b. Demand Loan Against Ship breakingThis type of loans does not exercise in this branch, but being exercised to another branch that provide advances against ship breaking. c. Payment Against Documents (PAD) Payment made the bank against lodgment of shipping documents of goods imported through L. C. falls under this head. It is an interim advance connected with import and is generally liquidated shortly against payments usually made by the party for retirement of the documents for release of imported goods from the customs authority. It falls under the category Ã¢â¬Å"Commercial LendingÃ¢â¬ . d. Loan agains t Imported Merchandise (LIM)Advances allowed for retirement of shipping documents and release of goods imported through L. C. taking effective control over the goods by pledge in brokerage house under bank's lock & key fall under this type of advance. This is also a temporary advance connected with import which is known as post-import finance and falls under the category Ã¢â¬Å"Commercial Lending. Ã¢â¬ e, Loan against Trust Receipt (LTR) Advance allowed for retirement of shipping documents and release of goods imported through L. C. without effective control over the goods delivered to the customer falls under this head.The goods are handed over to the importer under trust with the arrangement that sale proceeds should be deposited to liquidate the advances within a given period. This is also a temporary advance connected with import and known as post-import finance and falls under the category Ã¢â¬Å"Commercial LendingÃ¢â¬ . g. Packing Credit Advance allowed to a party against specific L. C/firm contract for processing/ packing of goods to be exported falls under this head and is categorized as Ã¢â¬Å"Packing Credit. Ã¢â¬ The advances must be adjusted from proceeds of the relevant exports within 180 days. i. Foreign Documentary Bills Purchased (FDBP)Payment made to a customer through purchase/ negotiation of a foreign documentary bills falls under this head. This temporary advance is adjustable from the proceeds of the shipping/export documents. Its falls under the category Ã¢â¬Å"Export CreditÃ¢â¬ j. Local Documentary Bills Purchased (LDBP/IDBP) Payment made against documents representing sell of goods to local export oriented industries which are deemed as exports and which are denominated in Local currency/ foreign currency falls under this head. The bill of exchange is held as the primary security. This temporary liability is adjustable from the proceeds of the bills. . Festival Business Loan. This type of loan are generally sanctioned dependin g on the occasion, more than two festival business loans are generally sanctioned in an annum. Ã¢â¬ ¢Term Loan a. Project Loan NCC BANK offers different conventional credit/investment schemes and the Banking products to their customers. So far loans and advances portfolio includes Project Finance in the form of Term Loan, Real Estate Finance, Secured Overdraft against FDR, different security certificates, working capital in the form of Cash Credit Hypothecation, Import Trade Finance in the form of PAD/LIM/TR etc.NCC BANK considers the loans, which are sanctioned for more than one year as term loan. Under this facility, an enterprise is financed from the starting to its finishing, i. e. from installation to its production b. Transportation Loan Considers the loans, which are sanctioned for the purpose of delivering the goods on to its final destination, its generally used in the form of inland exporting or back to back letter of credit. c. House Building Loan Loans allowed to indivi dual/ enterprise construction of house (residential or commercial) fall under this of advance.The amount is repayable by monthly installment within a specified period, advances are known as Loan (HBL GEN). d. Small Business Loan Short term and long term loans allowed to individual/ firms / industries for a specific purpose but a definite period and generally repayable by the installments fall under this head. These types of lending are mainly allowed to accommodate financing under the categories. Small and Cottage Industries, Very often term financing for agriculture and others are also included here. e. Consumer Finance LoanNCCBL keeping in mind the economic development and helping the fixed income group in fulfilling their demand to upgrade the standard of living will continue before consumer finance scheme for: Ã¢â¬ ¢Household appliances, Furniture & Fixture, Air Conditioner, Fax Machine, motor cycle/Car, Cellular phone, and Other equipment f. Lease Finance NCCBL to keep its con tribution to the growth of national GDP, accelerate the total economic development by infusing the fund in productive sector in more efficient and effective way: diversity its portfolio and satisfy the customers need would go for lease finance for: Setting up of small and cottage industries/Projects, BMRE of existing projects Ã¢â¬ ¢Transports (roads/marine), Medical equipment/surgical/clinical/lab equipment/x-ray machine etc, Construction equipment and other fixed assets of other productive and service oriented ventures. g. Personal Loan To meet emergency financial requirement especially for medical treatment/surgical operation, marriage, admission of children/ educational expenses, maternity the loan facility may be extended. 3. 1. 3. Money transmission Product Carrying cash money is troublesome and risky.ThatÃ¢â¬â¢s why money can be transferred from one place to another through banking channel. This is called remittance. Remittances of funds are one of the most important aspect s of the Commercial Banks in rendering services to its customers. Ã¢â¬ ¢Payment order/security deposit receipt (PO/SDR): This term will be discussed in the overall activities section under remittance department. Ã¢â¬ ¢Demand Draft (DD): This term will also been discussed in the overall activities section under remittance department. Ã¢â¬ ¢Telegraphic Transfer (TT): This is also a common term that in the remittance section as well. . Travelers Cheque TravelerÃ¢â¬â¢s Cheque (TC)Issue of TCTC is useful to traveler abroad. Customers can encash the TC in abroad from the drawee bank. TC is alternative to holding cash and it provides better security than holding cash in hand. Buying Of TCIf any unused leaf of TC is surrendered bank buys it from the customer. All payments are made in local currency. Banks generally buy only those TC. 3. 1. 4. International Business Products In banks when we talk of international business products, we refer to the general mechanism by which a bank conve rts currency of one country into that of another.Foreign Exchange Department (FED) is the international department by which a bank or an AD branch transects with other international bank or of a brach. Bangladesh Bank issues license to scheduled banks to deal with foreign exchange. These banks are known as Authorized Dealers. If the branch is authorized dealer in foreign exchange market, it can remit foreign exchange from local country to foreign countries by transacting their international business products. So NCC BANK, Principal branch is an authorized dealer. Ã¢â¬ ¢Letter of Credit (L/C) Ã¢â¬ ¢Back to back Letter of credit (BTB L/C) Buying and selling of foreign exchange Ã¢â¬ ¢Foreign demand draft (FDD) Foreign Demand DraftBank issue Demand Draft in favor of purchaser or any other according to instruction of purchaser. The payee can collect it for the drawee bank in which the Issuing bank of Demand Draft holds its NOSTRO Account. Bank also makes payment on DD drawn on this ba nk by its foreign correspondence bank through the VOSTRO Account. Ã¢â¬ ¢Foreign telegraphic transfer (FTT) Outward remittance covers sales of foreign currency through issuing foreign T. T. Drafts, Travelers Check etc. as well as sell of foreign exchange underL/C and against import bills retired. 3. 1. 5. Special fee earning products NCC Bank considers the special earning product to the different consumer, as it to play a comprehensive role in financing the bank product. Among those following are some issues relate to special fee earning product: Ã¢â¬ ¢Bank guarantee Ã¢â¬ ¢Foreign bank Guarantee (F. B/G) Ã¢â¬ ¢Underwriting Ã¢â¬ ¢Brokerage House and locker Service Ã¢â¬ ¢Issuances of Sanchaya Patra, Wages Earners Development Bond, National Investment Bond, Prize Bond are some special earning fee product of NCC bank. 3. 1. 6. Social Service ProductsNCC Bank Considers several service products by looking at the social point of view, At this competitive edge, banking might have reach ed to preserve its market share and to penetrate new market share through diversification of its product range. Following are the services that are designed to provide for society: Ã¢â¬ ¢Sale of Lottery Tickets for collection of fund for social establishment Ã¢â¬ ¢Collection of Zakat Fund Ã¢â¬ ¢Collection of Haj Deposit 3. 2 CREDIT POLICY & CREDIT OPERATION OF NCCBL Credit policy is a guideline of a financial institution to determine- Ã¢â¬ ¢Who shall get credit (eligibility to get loan) How much to lend (Amount of lending) Ã¢â¬ ¢Why to lend (Purpose of lending) Ã¢â¬ ¢Where to finance (Portfolio Management depending upon profitability and requirement for participation on socio Ã¢â¬âeconomic benefits) Credit division of a bank especially acts as a key financial machine to haunt for earning revenue of a bank to achie3ve its ultimate goal for profut maximization with minimal risk maintaining balanced portfolio management. 3. 3 WHERE TO FINANCE (FINANCING ACTIVITIES OF NCC BANK) Financial activities of a bank depend upon its portfolio management of its funds through deposit.Our lending policy would be within the broad policy frame work envisaged above. BankÃ¢â¬â¢s lending activities may be classified into the following broad segments. 1. Trade and Commerce 2. Industries 3. Lease Financing 4. Consumer Financing 5. Real Estate & Civil Construction 6. Agro based 7. Small Business Loans 8. Personal Loans 3. 4 Security Policies The term loans, if any extended by the bank shall gave to be secured by first charge mortgage on the fixed asset coverage leaving a margin of at leas 25% depending upon the viability of the project.Consideration in this regard will vest purely on viability criteria irrespective of bank client-relationship. The determinants in this respect are debt service coverage, debt-equity ratio, and fixed coverage to term loan with a margin of 25-30% minimum. The working capital may be additionally covered by 1st charge mortgage of the fixed asset or by sharing first mortgage ranking PARIPASU with the financial institutions providing term loan. Decision is this regard shall be at the sole discretion of the bank. GENERAL BANKING OF NCC BANK LTD. 4. 0 FUNCTIONS OF NCC BANK LIMITED 4. 1 GENERAL BANKINGGeneral banking department is the heart of all banking activities. This is the busiest and important department of a branch, because funds are mobilized, cash transactions are made; clearing, remittance and accounting activities are done here. Since bank is confined to provide the services everyday, general banking is also known as Ã¢â¬Ëretail bankingÃ¢â¬â¢. In NCC BANK LTD Principal Branch, the following departments are under general banking section: A)Account opening section B)Deposit Section C)Cash Section B)Remittance section C)Clearing section D)Accounts section 4. 1. 1 A) ACCOUNT OPENING SECTIONAccount opening is the gateway for clients to enter into business with bank. It is the foundation of banker customer relationshi p. This is one of the most important sections of a branch, because by opening accounts bank mobilizes funds for investment. Various rules and regulations are maintained and various documents are taken while opening an account. A customer can open different types of accounts through this department. Such as: 1. Current Deposit. 2. Savings account. 3. Short notice deposit (SND) >Types of Accounts with Terms and Conditions Current Deposit Current account is purely a demand deposit account.There is no restriction on withdrawing money from the account. It is basically justified when funds are to be collected and money is to be paid at frequent interval. Some important points have been discussed in the project part. Savings Bank Account This deposit is primarily for small-scale savers. Hence, there is a restriction on withdrawals in a month. Heavy withdrawals are permitted only against prior notice. Some Important Points have been discussed in project part. SND (Short Notice Deposit) Acco unt Normally various big companies, organizations, Government Departments keep money in STD account.Frequent withdrawal is discouraged and requires prior notice. The deposit should be kept for at least seven days to get interest. The interest offered for STD is less than that of savings deposit. Interest is calculated based on daily minimum product and paid two times in a year. Interest rate is 6. 00%. Table-01 > Account Opening procedure Step 1The account should be properly introduced by Any one of the following: ? An existing Current Account holder of the Bank. ?Officials of the Bank not below the rank of an Assistant officer. ?A respectable person of the locality well known to the Manager/Sub-Manager of he Branch concerned. Step 2Receiving filled up application in bankÃ¢â¬â¢s prescribed form mentioning what type of account is desired to be opened Step 3? The form is filled up by the applicant himself / herself ? Two copies of passport size photographs from individual are taken, in case of firms photographs of all partners are taken ? Applicants must submit required documents ?Application must sign specimen signature sheet and give mandate ? IntroducerÃ¢â¬â¢s signature and accounts number Ã¢â¬â verified by legal officer Step 4Authorized Officer accepts the applicationStep 5Minimum balance is deposited Ã¢â¬â only cash is accepted Step 6Account is opened and a Cheques book and pay-in-slip book is given >Documents required for opening account ? Individual / Joint Account 1. Introduction of the account. 2. Two photographs of the signatories duly attested by the introducer. 3. Identity (copy of passport). 4. Joint Declaration Form (For joint a/c only). 5. EmployeeÃ¢â¬â¢s Certificate (in case of service holder). ? Partnership account 1. Introduction of the account. 2. Two photographs of the signatories duly attested by the introducer. 3.Partnership letter duly signed by all partners (Sign should be similar as stated in Partnership Deed). 4. Partnership Deed duly certified by Notary public. 5. Registration (If any). 6. Updated Trade license. ? Proprietorship account 1. Introduction of the account. 2. Two photographs of the signatories duly attested by the introducer. 3. Valid copy of Trade License. 4. Rubber stamp. 5. TIN number certificate. 6. Identity (Copy of passport). 7. Permission letter from DC/ Magistrate (in case of newspaper) ? Limited company 1. Introduction of the account. 2.Two photographs of the signatories duly attested by the Introducer. 3. Valid copy of Trade License. 4. Board resolution of opening A/C duly certified by the Chairman/Managing Director. 5. Certificate of Incorporation. 6. Certificate of Commencement (In case of Public limited company). 7. Certified (joint stock) true copy of the Memorandum and Article of Association of the Company duly attested by Chairman or Managing Director. 8. List of directors along with designation & specimen signature. 9. Latest certified copy of Form Ã¢â¬â xii (to be cert ified by register of joint stock companies) (In case of Directorship change). 0. Rubber Stamp (Seal with designation of each person) 11. Certificate of registration (In case of Insurance Company Ã¢â¬â Obtained from department of Insurance from the Peoples Republic of BD). ? Club / societies account 1. Introduction of the account. 2. Two photographs of the Signatories duly attested by the introducer. 3. Board Resolution for Opening A/C duly certified by President/ Secretary. 4. List of Existing Managing Committee. 5. Registration (if any). 6. Rubber Stamp. 7. Permission letter from Bureau of N. G. O. (In case of N. G. O. A/C). >Closing of an accountThe closing of an account may happen, ?If the customer is desirous to close the account, ?If the NCC BANK finds that the account is inoperative for a long duration. ?If the court of NCC BANK issues garnishee order. A customer may close his/her account any time by submitting an application to the branch. The customer should be asked to d raw the final check for the amount standing to the credit of his/her account less the amount of closing an other incidental charge and surrender the unused check leaves. The account should be debited for the account closing charge etc. nd the authorized officer of the bank should destroy unused check. In case of joint account the application for closing the account should be signed by the joint account holder. The fee for closing of an account is Tk. 50. 4. 1. 2 B) LOCAL REMITTANCE Carrying cash money is troublesome and risky. ThatÃ¢â¬â¢s why money can be transferred from one place to another through banking channel. This is called remittance. Remittances of funds are one of the most important aspects of the Commercial Banks in rendering services to its customers. Types of remittance: ?Between banks and non banks customer Between banks in the same country ?Between banks in the different centers. ?Between banks and central bank in the same country ?Between central bank of different customers. The main instruments used by the NCC BANK of remittance of funds are ?Payment order (PO) ?Demand Draft (DD) ?Telegraphic Transfer (TT) So the basic three types of local remittances are discussed below: Table- 02 PointsPay OrderDemand DraftTT ExplanationPay Order gives the payee the right to claim payment from the issuing bankDemand Draft is an order of issuing bank on another branch of the same bank to pay specified sum of money to payee on demand.Issuing branch requests another branch to pay specified money to the specific payee on demand by Telegraph /Telephone Payment fromPayment from issuing branch onlyPayment from ordered branch Payment from ordered branch Generally used to Remit fund Within the clearinghouse area of issuing branch. Outside the clearinghouse area of issuing branch. Payee can also be the purchaser. Anywhere in the country Payment Process of the paying bankPayment is made through clearing 1. Confirm that the DD is not forged one. 2. Confirm with sent advice 3. Check the Ã¢â¬ËTest CodeÃ¢â¬â¢ 4. Make payment1.Confirm issuing branch 2. Confirm Payee A/C 3. Confirm amount 4. Make payment 5. Receive advice Charge Only commissionCommission + telex chargeCommission + Telephone Term Deposit Receipt The Local Remittance section of NCC BANK Motijheel Branch also issues TDR. They are also known as time deposit or time liabilities. These are deposits, which are made with the bank for a fixed period, specified in advance. The bank need not maintain cash reserves against these deposits and therefore, the bank offers higher of interest on such deposits. Ã¢â¬ ¢Term Deposits: These rates are not negotiable.In this table we can find out the percentage that is given by the bank for specific period of time to the customer. 4. 1. 3 CLEARING SECTION The amount of Cheques, Pay Order (P. O), and Demand Draft (D. D) Collection from other banks on behalf of its customer is a basic function of a Clearing Department. Ã¢â¬ ¢Clearing: Clearing is a sys tem by which a bank can collect customers fund from one bank to another through clearing house. Ã¢â¬ ¢Clearing House: Clearing House is a place where the representatives of different banks get together to receive and deliver Cheques with another banks. Normally, Bangladesh Bank performs the Clearing House in Dhaka, Chittagong, Rajshahi, Khulna & Bogra. Where there is no branch of Bangladesh Bank, Sonali bank arranges this function. Ã¢â¬ ¢Member of Clearing House: NCC BANK limited is a scheduled Bank. According to the Article 37(2) of Bangladesh Bank Order, 1972, the banks which are the member of the clearinghouse are called as Scheduled Banks. The scheduled banks clear the cheque drawn upon one another through the clearinghouse. Ã¢â¬ ¢Types of ClearingA)Outward Clearing: When the Branches of a Bank receive cheques from its customers drawn on the other Banks within the local clearing zone for collection through Clearing House, it is Outward Clearing. B)Inward Clearing: When the Ba nks receive cheque drawn on them from other Banks in the Clearing House, it is Inward Clearing. Ã¢â¬ ¢Who will deposit cheque for Clearing: Only the regular customers i. e. who have Savings, Current, STD & Loan Account in the bank can deposit cheque for collection of fund through clearing house. Ã¢â¬ ¢Responsibility of the concerned officer for the Clearing Cheque and being work with department, following are the issues )Crossing of the cheque. 2)(Computer) posting of the cheque. 3)Clearing seal & proper endorsement of the cheque. 4)Separation of cheque from deposit slip. 5)Sorting of cheque 1st bank wise and then on branch wise. 6)Computer print 1st branch wise & then bank wise. 7)Preparation of 1st Clearing House computer validation sheet. 8)Examine computer validation sheet with the deposit slip to justify the computer posting 9) Copy of computer posting in the floppy disk. Ã¢â¬ ¢Bills Collection: In modern banking the mechanism has become complex as far as smooth transaction and safety is concerned.Customer does pay and receive bill from their counterpart as a result of transaction. Commercial bankÃ¢â¬â¢s duty is to collect bills on behalf of their customer. Types of Bills for Collection i. Outward Bills for Collection (OBC). ii. Inward Bills for Collection (IBC). What is OBC? OBC means Outward Bills for Collection . OBC exists with different branches of different banks outside the local clearinghouse. Normally two types of OBC: 1)OBC with different branches of other banks 2)OBC with different branches of the same bank Procedure of OBC: 1)Entry in the OBC register. 2)Put OBC number in the cheque. ) Ã¢â¬Å"Crossing sealÃ¢â¬ on the left corner of the cheque & Ã¢â¬Å"payees accountÃ¢â¬ will be credited on realization Ã¢â¬Å"sealÃ¢â¬ on the back of the cheque with signature of the concerned officer. 4)Dispatch the OBC cheque with forwarding. 5)Reserve the photocopy of the cheque, carbon copy of the forwarding and deposit slip of the cheque in the OBC file. Inward bills for collection (IBC) When the banks collect bills as an agent of the collecting branch, the system is known as IBC. In this case the bank will work as an agent of the collection bank. The branch receives a forwarding letter and the bill. Procedure of IBC 1.IBC against OBC: To receive the OBC cheque first we have to give entry in the IBC Register . The IBC number should put on the forwarding of the OBC with date. 2. Deposit of OBC amount: OBC cheque amount is put into the Ã¢â¬Å"sundry deposit-sundry Creditors accountÃ¢â¬ , prepare debit & credit voucher of it. If the OBC cheque is honored, send credit advice (IBCA) with signature & advice number of the concern branch for the OBC amount. 3. If the OBC cheque is dishonored, the concerned branch is informed about it. 4. Again place in the clearing house or send the OBC cheque with Return Memo to the issuing branch according to their information. . 1. 4 D) ACCOUNTS SECTION Accounts Department is called as the n erve Centre of the bank. In banking business, transactions are done every day and these transactions are to be recorded properly and systematically as the banks deal with the depositorsÃ¢â¬â¢ money. . Improper recording of transactions will lead to the mismatch in the debit side and in the credit side. To avoid these mishaps, the bank provides a separate department; whose function is to check the mistakes in passing vouchers or wrong entries or fraud or forgery.This department is called as Accounts Department. If any discrepancy arises regarding any transaction this department report to the concerned department. Besides these, the branch has to prepare some internal statements as well as some statutory statements, which are to be submitted to the Central Bank and the Head Office. This department prepares all these statements. Workings of this department: Ã¢â¬ ¢Packing of the correct vouchers according to the debit voucher and the credit voucher Ã¢â¬ ¢ Recording the transactions in the cashbook. Recording the transactions in general and subsidiary ledger Ã¢â¬ ¢Preparing the daily position of the branch comprising of deposit and cash Ã¢â¬ ¢Preparing the daily Statement of Affairs showing all the assets and liability of the branch as per General Ledger and Subsidiary Ledger separately Ã¢â¬ ¢Making payment of all the expenses of the branch Ã¢â¬ ¢Recording inters branch fund transfer and providing accounting treatment in this regard. Ã¢â¬ ¢Preparing the monthly salary statements for the employees Ã¢â¬ ¢Preparing the weekly position for the branch which is sent to the Head Office to maintain Cash Reserve Requirement (C.R. R) Ã¢â¬ ¢Preparing the monthly position for the branch which is sent to the Head Office to maintain Statutory Liquidity Requirement (S. L. R) Ã¢â¬ ¢Make charges for different types of duties Ã¢â¬ ¢Preparing the budget for the branch by fixing the target regarding profit and deposit so as to take necessary steps to generate and mobilize deposit. Ã¢â¬ ¢Checking of Transaction List Ã¢â¬ ¢Recording of the vouchers in the Voucher Register 4. 2 E. FOREIGN EXCHANGE Foreign exchange is the means and methods by which rights to wealth in a countryÃ¢â¬â¢s currency are converted into rights to wealth in another countryÃ¢â¬â¢s currency.In banks when we talk of foreign exchange, we refer to the general mechanism by which a bank converts currency of one country into that of another. Foreign Exchange Department (FED) is the international department Bangladesh Bank issues license to scheduled banks to deal with foreign exchange. These banks are known as Authorized Dealers. If the branch is authorized dealer in foreign exchange market, it can remit foreign exchange from local country to foreign countries. So NCC BANK, Principal branch is an authorized dealer. There are three kinds of foreign exchange transaction:A)Import B)Export C)Remittance. 4. 2. 1 A) IMPORT To import, a person should be competent to be an importerÃ¢â¬â ¢. According to Import and Export Control Act, 1950, the Office of Chief Controller of Import and Export provides the registration (IRC) to the importer. In an international business environment, buyers and sellers are generally unknown to each other. So seller of goods always seeks security for the payment of his exported goods. Bank gives export guarantee that it will pay for the goods on behalf of the buyer if the buyer does not pay. This guarantee is called Letter of Credit.Thus the contract between importer and exporter is given a legal shape by the banker by Ã¢â¬ËLetter of CreditÃ¢â¬â¢. 4. 2. 1. 1>Letter of Credit Ã¢â¬ ¢ Definition A letter of credit is a letter issued by a bank (know as the opening or the issuing bank) at the instance of its customer (known as the opener) addressed to a person (beneficiary) undertaking that the bills drawn by the beneficiary will be duly honored by it (opening bank) provided certain conditions mentioned in the letter gave been complied w ith. Table- 03 ImporterWho applies for L/C Issuing BankIt is the bank which opens/issues a L/C on behalf of the importer.Confirming Bank It is the bank, which adds its confirmation to the credit and it, is done at the request of issuing bank. Confirming bank may or may not be advising bank. Advising or Notifying Bank It is the bank through which the L/C is advised to the exporters. This bank is actually situated in exporterÃ¢â¬â¢s country. It may also assume the role of confirming and / or negotiating bank depending upon the condition of the credit. Negotiating Bank It is the bank, which negotiates the bill and pays the amount of the beneficiary. The advising bank and the negotiating bank may or may not be the same.Sometimes it can also be confirming bank. Accepting BankIt is the bank on which the bill will be drawn (as per condition of the credit). Usually it is the issuing bank. Reimbursing BankIt is the bank, which would reimburse the negotiating bank after getting payment Ã¢â ¬â instructions from issuing bank. 4. 2. 1. 3 Ã¢â¬ ¢ Steps for import L/C Operation Ã¢â¬â 8 steps operation Step 1 Ã¢â¬â Registration with CCI&E Ã¢â¬ ¢For engaging in international trade, every trader must be first registered with the Chief Controller of Import and Export. Ã¢â¬ ¢By paying specified registration fees to the CCI&E. he trader will get IRC/ERC (Import/Export Registration Certificate), to open L/C with bank, this IRC is must. Step 2 Ã¢â¬â Determination terms of credit Ã¢â¬ ¢The terms of the letter of credit are depending upon the contract between the importer and exporter. The terms of the credit specify the amount of credit, name and address of the beneficiary and opener, tenor of the bill of exchange, period and mode of shipment and of destination, nature of credit, expiry date, name and number of sets of shipping documents etc. Step 3 Ã¢â¬â Proposal for Opening of L/C To have an import LC limit an importer submits an application to department to NCC BANK.The proposal contains the following particulars: Ã¢â¬ ¢Full particulars of the bank account Ã¢â¬ ¢Nature of business Ã¢â¬ ¢Required amount of limit Ã¢â¬ ¢Payment terms and conditions Ã¢â¬ ¢Goods to be imported Ã¢â¬ ¢Offered security Ã¢â¬ ¢Repayment schedule Step 4 Ã¢â¬â Application by importer to the banker to open letter of credit Ã¢â¬ ¢For opening L/C, the importer is required to fill up a prescribed application form provided by the banker along with the following documents: Table- 04 1. L/C Application form 7. Authority to debit account 2. Filled up LCA form 8. Filled up amendment request Form 3. Demand Promissory Note 9. IMP form 4. ro-forma invoice 10. Insurance cover note and money receipt. 5. Tax Identification number 11. Membership certificate 6. Import registration certificate 12. Rate fluctuation undertaking Step 5 Ã¢â¬â Opening of L/C by the bank for the opener: Ã¢â¬ ¢Taking filled up application form from the importer. Ã¢â¬ ¢Collects credit report of exporter from exporterÃ¢â¬â¢s country through his foreign correspondence there. Ã¢â¬ ¢Opening bank then issues credit by air mail/TELEX/SWIFT followed by L/C advice as asked by the opener through his foreign correspondent or branch as the case may be, at the place of beneficiary.The advising bank advises the L/C to the beneficiary on his own form where it is addressed to him or merely hand over the original L/C to the beneficiary if it is so addressed. Step 6 Ã¢â¬â Shipment of goods and lodgment of documents by exporter: Ã¢â¬ ¢Then exporter ships the goods to the destination of the importer country. Ã¢â¬ ¢Sends the documents to the L/C opening bank through his negotiating bank. Generally the following documents are sent to the Opening Banker with L/C: Table- 05 1. Bill of Exchange 6. Packing List 2. Bill of Lading 7. Advice Details of Shipment 3. Commercial Invoice 8. Pre-shipment Inspection Certificate . Certificate of Origin 9. Vessel Particular 5. A certificate stating t hat each packet contains the description of goods over the packet. 10. Shipment Certificate Step 7 Ã¢â¬â Lodgment of Documents by the opening Bank from the negotiating bank: After receiving the documents, the opening banker scrutinizes the documents. If any discrepancy found, it informs the importer. If importer accepts the fault, then opening bankers call importer retiring the document. At this time many thing can happen. These are indicated in the following: Ã¢â¬ ¢Discrepancy found but the importer accepts Ã¢â¬â no problem occurs in lodgment. Discrepancy found and importer not agreed to accept Ã¢â¬â In this case, importer protest and send back all the documents to the exporter and request his to make in the specified manner. Here banker is not bound to pay because the documents send by exporter is not in accordance with the terms of L/C. Ã¢â¬ ¢Documents are OK but importer is willing to retire the documents Ã¢â¬â In this case bank is obligated to pay the price of exp orted goods. Since importer did not pay for bill of exchange, this payment by bank is one kind of credit to the importer and this credit in banking is known as PAD. Everything is O. K. but importer fails to clear goods from the port and request bank to clear Ã¢â¬â In this case banks clear the goods and takes delivery of the same by paying customs duty and sales tax etc. So, this expenditure is debited to the importerÃ¢â¬â¢s account and in banking it is called LIM. Step 8 Ã¢â¬â Retirement The importer receives the intimation and gives necessary instruction to the bank for retirement of the import bills or for the disposal of the shipping document to clear the imported goods from the customs authority.The importer may instruct the bank to retire the documents by debiting his account with the bank or may ask for LTR (Loan against Trust Receipt). 4. 2. 1. 4 Ã¢â¬ ¢ Accounting Procedure in case of L/C Opening When the officer thinks fit the application to open a L/C, giving the f ollowing entries- creates the following charges- Table- 06 ParticularsDebit/ CreditCharges in Taka CustomerÃ¢â¬â¢s A/CDebit L/C Margin A/CCredit Commission A/C on L/CCredit50% VATCredit15% on commission SWIFT ChargeCredit3000/= DatamaxCredit1000/= StampCredit150/= PostageCredit300/= DHL/CourierCredit1500 4. 2. 1. Ã¢â¬ ¢ Amendment of L/C After opening of L/C some timeÃ¢â¬â¢s alteration to the original terms and conditions become necessary. These amendments involve changes in a. Unit price b. Extension of validity o the L/C c. Documentary requirements etc. Such amendments can be affected only if all the concerned parties agree i. e. the beneficiary, the importer, the issuing bank and the advising bank. For any amendment the importer must request the issuing bank in writing duly supported by revised indent/ Proforma invoice. The issuing bank then advises the required amendment to the advising bank.L/C amendment commission including postage is charged to the clients A/C. 4. 2. 1. 6 >Loan against Trust Receipts (LTR) Ã¢â¬ ¢ Advance against a Trust Receipt obtained from the Customers are allowed to only first class tested parties when the documents covering an import shipment or other goods pledged to the Bank as security are given without payment. However, for such advances prior permission/sanction from Head Office must be obtained. Ã¢â¬ ¢ The customer holds the goods or their sale-proceeds in trust for the Bank, till such time, the loan allowed against the Trust Receipts is fully paid off. The Trust Receipt is a document that creates the BankerÃ¢â¬â¢s lien on the goods and practically amounts to hypothecation of the proceeds of sale in discharge of the lien. 4. 2. 1. 7>Loan Against Imported Merchandise (LIM) Advance (Loan) against the security of merchandise imported through the Bank may be allowed either on pledge or hypothecation of goods, retaining margin prescribed on their Landed Cost, depending on their categories and Credit Restriction imposed by the Bangladesh Bank. Bank shall also obtain a letter of undertaking and indemnity from the parties, before getting the goods cleared through LIM Account. 4. 2. 1. >Payment Procedure of Import Documents This is the most sensitive task of the Import Department. The officials have to be very much careful while making payment. This task constitutes the following: Ã¢â¬ ¢ Date of Payment Usually payment is made within seven days after the documents have been received. If the payment is become deferred, the negotiating bank may claim interest for making delay. Ã¢â¬ ¢ Preparing Sale Memo A sale memo is made at B. C rate to the customer. As the T. T & O. D rate is paid to the ID, the difference between these two rates is exchange trading. Finally, an Inter Branch Exchange Trading Credit Advice is sent to ID. Requisition for the Foreign Currency For arranging necessary fund for payment, a requisition is sent to the International Department. Ã¢â¬ ¢ Transmission of Message Message is transmi tted to the correspondent bank ensuring that payment is being made. 4. 3. 2 B) EXPORT 4. 3. 2. 1>Understanding The goods and services sold by Bangladesh to foreign households, businessmen and Government are called export. The export trade of the country is regulated by the Imports and Exports (control) Act, 1950. There are a number of formalities, which an exporter has to fulfill before and after shipment of goods.The exports from Bangladesh are subject to export trade control exercised by the Ministry Of Commerce through Chief Controller of Imports and Exports (CCI & E). No exporter is allowed to export any commodity permissible for export from Bangladesh unless he is registered with CCI & E and holds valid Export Registration Certificate (ERC). The ERC is required to be renewed every year. The ERC number is to be incorporated on EXP forms and other documents connected with exports. 4. 3. 2. 2 The formalities and procedure of Export L/C 1. Obtaining exports LC: To get export LC for m exporter issued by the importer. . Submission of export documents: Exporter has to submit all necessary documents to the collecting bank after shipping of goods 3. Checking of export documents: After getting the documents banker used to check the documents as per LC terms 4. Negotiation of export documents: If the bank accepts the document and pays the value draft to the exporter and forward the document to issuing bank that is called a negotiating bank. If the bank does buy the LC then the bank normally acts as collecting bank. 5. Realization of proceeds: This is the period when the issuing bank has realized the payment. 6.Reporting to the Bangladesh bank: As per instruction by Bangladesh bank the bank has to report to respective department of Bangladesh bank by mentioning latest payment. 7. Issue to proceeds realization certificate (PRC): Bank has to issue proceed realization certificate of export LC to the supplier / exporter for getting cash assistance 4. 3. 2. 4>Back-To-Back L/C It is simply issued to the clients against an import L/C. Back-to-Back mechanism involves two separate L/C. One is master Export L/C and another is Back-to-Back L/C. On the strength of Master Export L/C bank issues bank to Back L/C.Back-to-Back L/C is commonly known as Buying L/C. On the contrary, Master Export L/C is known as Selling L/C. Ã¢â¬ ¢ 4. 3. 2. 5 Features of Back to Back L/C Ã¢â¬ ¢An Import L/C to procure goods /raw materials for further processing. Ã¢â¬ ¢It is opened based on Export L/C. Ã¢â¬ ¢It is a kind of Export Finance. Ã¢â¬ ¢Export L/C is at Sight but back to Back L/C is at Usance. Ã¢â¬ ¢No margin is required to open Back to back L/C Ã¢â¬ ¢Application is registered with CCI&E Ã¢â¬ ¢Applicant has bonded warehouse license. Ã¢â¬ ¢L/C value shall not exceed the admissible percentage of net FOB value of relative Master L/C. Ã¢â¬ ¢Usance period will be up to 180 days. The import L/C is opened for 75% of the value of Export L/C. Ã¢â¬ ¢Here L/C issued agains t the lien of export L/C. Ã¢â¬ ¢Arrangements are such that export L/C matures first then out of this export profit, import L/C is paid out. Ã¢â¬ ¢ 3. 3. 2. 6 Documents Required for Opening a Back-to-back L/C In NCC BANK Principal Branch, following papers/ documents are required for opening a back-to-back L/C- 1. Master L/C 2. Valid Import Registration Certificate (IRC) and Export Registration Certificate (ERC) 3. L/C Application and LCAF duly filled in and signed 4. Proforma Invoice or Indent 5.Insurance Cover Note with money receipt 6. IMP Form duly signed In addition to the above documents, the followings are also required to export oriented garment industries while requesting for opening a back-to-back L/C Ã¢â¬â 1. Textile Permission 2. Valid Bonded Warehouse License 3. Quota Allocation Letter issued by the Export Promotion Bureau (EPB) in favor of the applicant for quota items. Ã¢â¬ ¢ Payment of back to back l/c: In case back to back as 60-90-120-180 days of maturity perio d, deferred payment is made. Payment is given after realizing export proceeds from the L/C issuing bank. 4. 3. 2. >Negotiation of Export Documents Negotiation stands for payment of value to the exporter against the documents stipulated in the LC. If documents are in order, NCC BANK purchases (negotiates) the same on the basis of banker- customer relationship. This is known as Foreign Documentary Bill Purchase (FDBP). If the bank is not satisfied with the documents submitted to NCC BANK gives the exporter reasonable time to remove the discrepancies or sends the documents to L/C opening bank for collection. This is known as Foreign Documentary Bill for Collection (FDBC) entered into the Foreign bill Purchased (F.B. P) register. The documents are sent to the L/C opening Ã¢â¬ ¢ Presentation of export documents for negotiation/Purchase: After shipment, exporter submits the following documents to NCC BANK for negotiation. Ã¢â¬ ¢Bill of exchange Ã¢â¬ ¢Bill of Lading Ã¢â¬ ¢Invoice Ã¢â¬ ¢Insurance Policy/Certificate Ã¢â¬ ¢Certificate of Origin Ã¢â¬ ¢Inspection Certificate Ã¢â¬ ¢Consular Invoice Ã¢â¬ ¢Packing List
Is equal pay the same as equitable pay? First you need to know the difference between the two. Equal pay would be a female doing the job of a construction electrician getting the same pay as her male counter part. Equitable pay is the perceived fairness when employeeÃ¢â¬ s compare pay from their job with other jobs in the company. You also need to know that pay adequacy is the pay level that allows the employee to meet basic needs and to achieve a standard of living that is minimally acceptable to the employee. (Kirkpatrick 1996) the last thing to describe is Equity Theory. Equity Theory maintains that people seek a balance between there efforts and rewards and the rewards that others receive for their efforts. Thus, if one employee believes that his or her efforts are being under-rewarded in comparison to his or her colleagues' efforts, the employee will attempt to restore balance by either securing additional rewards or reducing his or her efforts. Equity pay can undercompensate or overcompensate, two forms of inequity, and cause Ã¢â¬Å"distressÃ¢â¬ that workers seek. The results suggest that it is not necessarily the case that each [worker] is simply out to get as much as he can for the work. There appear to be equally strong desires that each one should earn the right amount-fair and reasonable amount relative to others. Workers who receive compensation that is considered less than equitable are more likely to strike, file grievances, or eventually withdraw from the workplace if the inequity, or the distress associated with inequity, is not reduced. Equity pay also implies that underpayment produces a different reaction in workers than overpayment does, although both reactions are considered distressing. Underpaid workers may experience feelings of deprivation and of being cheated, whereas overpayment may produce feelings of guilt and unworthiness. These different expressions of distress may engender quite different strategies for reduction. How workers reduce or avoid feelings of inequity caused by overpayment. Individuals would rather raise their estimations of their own inputs than reduce the valuation of their outcomes; the latter process could be far more costly to the individual. Attitudes that devalue the job and/or its outcomes could eventually lead to job dissatisfaction, which is likely to diminish one's overall well-being. Kirkpatrick emplies that Ã¢â¬Å"If employeeÃ¢â¬ s are not meeting pay adequacy through pay or other resources, then striving to maintain fair pay is irrelevant. Ã¢â¬ (P158) An organization that decides to base an employees' compensation on his or her impact eliminates the need for job classifications and for most compensation management tools. Although this may seem extreme, it's an attractive option, especially given the weaknesses of most classification and compensation systems. Current job classification methodologies attempt to create job level hierarchies based on such criteria as knowledge, skills and the required abilities. The logic here is that the classification system aids compensation management by providing a means to compare salaries paid to equivalent jobs throughout the organization. Compensation should be driven by an employee's contribution, not by his or her classification. Impact analysis eliminates the need for most compensation management tools, including salary surveys that sound the depths of a collective pool of ignorance. Instead of capping salaries at some percentage of what everyone else is paying, compensation can be limited by the estimated r actual return generated by the position. In those rare cases in which market pressure and operational necessity demand that a position be paid more than the return it will generate, impact analysis will keep management apprised of the negative return to prevent its being lost or forgotten. Equal pay not only treats individuals fairly it benefits us allÃ¢â¬âparticularly our Nation's families. It empowers individuals to become more self-sufficient, reducing the dependence of many families on government assistance. It also rises women's purchasing power, increases their pensions, and improves their capacity to save, all of which help to strengthen our economy. During the past three decades, our Nation has made a strong commitment to ensuring that every American is treated with dignity and equality in the workplace. Legislation such as the Equal Pay Act and Title VII of the Civil Rights Act has helped us make progress in correcting discriminatory practices. But we still have a long way to go before the wage gap between men and women are eliminated.
Tuesday, July 30, 2019
Administrative law simply means that the branch of public law which deals with the organization and powers of administrative and quasi administrative agencies and prescribes the principles and rules by which an official action is reached and reviewed in relation to individual liberty and freedom. Technically, from the definition it is clear to state that administrative law is bound and founded to determine the legality of the government action, the nature and scope of the powers conferred to the government official through checking abuse of administrative power.Meanwhile, the study of administrative law can be explained in broader after pondering the red light and green light theories, in which the red light theory views primarily that objective of administrative law is to consider the law and control the state power and desires to minimize the encroachments of the state on the rights of individual whereby this is monitored and controlled by judiciary.In connection to that, Green the ory relies much in operation of the state in the sense that it allows the intervention of the state in larger public interest ensuring right of citizen and well being of society as whole and this can be achieved through freedom of information, active involvement, positive deliberation, effective consultation and other similar action at the level of administration. In the same vein, the issue raised, if the means are not trustworthy, how the end could be?Just or unjust. In the light of the control mechanism discussion hereunder is considering intensively how far the means which are not trustworthy could result to unjust end. POLITICAL PARTIES; as per the political parties Act ,is defined as any organized group formed for the purpose of forming a government or local government authority within the united republic through election or for putting up or supporting candidate to such election .Now, the modern political thoughts tends to accept the notion that political parties are absolute essential to democracy so far the political parties try to crystallize many shades of opinion into one coherent policy unify many diverse element into one manageable unit. The political parties are manifested from the right of freedom of assembly as stipulated in the constitution .The political parties are mechanism to perform an important function of interest articulation, whereby an individual finds out the open channels to express their interest and needs, and also performing function of interest aggregation ,where peoples demands converted into general policy alternatives. Therefore in modern democracy ,it has always been necessary to guarantee and protect the freedom of assembly ,in that line it is one of the platform for attainment of social development and nurturing of democratic advancement in a given society.But the situation contrary to our country today, the right is restricted and its enjoyment subjected to the laws of the land, the problem comes in the course of interp retation and ,implementing the realization of this right. Experience can be drawn respectively from Tanzania, that the state limits the occupation of political parties so as to enhance the sustainability of state powers, there various laws and aspect which curtails the freedom of association for political parties and its operation . Starting with:- Cumbersome procedures for the registration of Political parties. t is a requirement of the law under political parties Act that any political party upon the request for registration must have at least 200 members from ten different region in the country. this number is too large and unrealistic especially in Tanzania where democracy is at infant stage. this provision denies the nourishment of democracy. Forinstance the denial of CCJ(chama cha jamii). Also under the same act it is provided that any political party ,by its constitution advocates the break up of union between Tanganyika and Zanzibar shall be disqualified and denied registrat ion. gain this provision limits the scope for scope discussion and will of the people towards union. The system of permanent national voters registration under the national election Act where without being registered the constitutional right to vote and being voted is vanished. in 2010,some irregularities in the system contributed good number of citizen not to vote due to typographic errors, double entry, false inclusion of alive in the list of deceased. Mere technicalities defeated the rights of citizens.Denial of independent candidate; one should not be compelled to join a political party in order to enjoy political right. the right to participate in governance of state includes right to vote and be voted. Also the practices shows that the ruling party during election used the government resources in the campaign. forinstance using of government vehicles and converting the government plans to political promises. this act are against free and fair election which is fundamental aspe ct of democracy.The role of police force; basically the police force does not guarantee the right to freedom of assembly but merely regulates the enjoyment of the right. on the ground of national security or public safety the police have the power to prohibit the assembly , however ,Lugakingira J,viewed that the law does not operate to take away the right to hold assembly or procession Ã¢â¬Ëit only empowers the police and magistrate to step in far the preservation of peace and order. but the police used such discretion power contrary even where is not necessary and sometimes used in favour of ruling party.To underscore this, refer the case of Mabere N yaucho Marando&another Vs Attorney General where it was held that Ã¢â¬ËÃ¢â¬â¢in order to maintain public order and security during political rallies ,it was important for permit to be issued. however that discretionary power to issue permit had to be exercised judicially which required that all political parties get same and equa l treatmentÃ¢â¬ ¦ Therefore, the above means seems to be not trustworthy ,hence bars the growth of democracy which is the spirit of our constitution, and participation of people in a matter and due political process fear to face the iron bar of law enforcers.Hence this will defeat the interest of change and justice in community. ACCESS TO JUSTICE; this emanates from the cardinal principle of law that every person is equal before the law. Regardless of political stands ,religious affiliation, all should be treated alike without affording unnecessary privileges and exemption. Right to access justice is fundamental principle of rule of law. As in the case of Mwl. Paul john mhozya Vs Attorney General held that everyone and every institution or organization in this country is enjoined to pay respect to the principle of supremacy of the law.Access to justice should be devoid of undue technicalities which defeats the end of justice, the procedure of taking government to court is very cumb ersome . this is supported by the case of Peter NgÃ¢â¬â¢omango Vs Gerson Mwangwa and Attorney General held that the right of an individual to have free access to the court is well recognized by constitution. the requirement of the consent of the minister before one can sue the government as imposed in section 6 of government proceeding Act infringes constitution Ã¢â¬Å"therefore this law is arbitrary and oppressive since it does not subjected to any control, therefore offends proportionality test.Also access to justice goes further to the speedy in dispensation of justice. As in the case of Hussanaira Kharton Vs Home Secretary State of Bihar held that delay in trial by itself constitutes denial of justice. In some circumstances citizens are denied the right o be heard ,while one has to be heard so as to access justice, failure to heard a party constitutes the violation of natural justice which is the spirit of the law. As in the case of Judge in charge of Arusha &Attorney General Vs Munuo that Ã¢â¬ËÃ¢â¬â¢no one should be condemned unheardÃ¢â¬â¢Ã¢â¬â¢.On the other hand, independence of judiciary and impartiality of it determine highly the proper access and attainment of justice. But number of means such as judicial appointment, poor remuneration, and judicial infrastructures denies a number of people not to meet justice. also some enactments such as civil procedure code on the issue of security for cost and election Act on requisite for money so as to launch an appeal of election. , denies the access of justice . refer Francis ndyanabo Julius ishengoma Vs Attorney general. Therefore, justice should not be commercialized ,but should be done though heaven falls.Through easy entry to judicial system, availability of legal representation, equality before the law, our means will be trustworthy and end will be just. HIGHER ADMINISTRATIVE AUTHORITIES; These include president, ministers ,civil service, higher institutions, and boards, these bodies ought to co mply with the principle of natural justice in the course of discharging their duties. the principle are to give reason(s) for any decision made, to hear both sides. And should not be dominated with the personal interest but public interest.The failure of decision maker to take into account a relevant consideration in making administrative decision is one of the instance of abuse of power and discretion, this would entitle a party with sufficient stand to seek for judicial review of ultravires administrative actions. Now, proper procedures must be followed and decision maker not be biased. In supporting the above arguments ,the following cases are material. in the case of Mohamed Jawad Mrouch Vs Minister for home affair held that discretionary power must be exercised fairly, and this requires adherence of the rules of natural justice .Also the case of Said juma muslim shekimweri Vs Attorney General held that I this country,civil servant are dismissed for misconduct only and not pleas ure of president. and when civil servant dismissed cause must be assigned. Therefore, in the light of the case of James Gwagilo Vs Attorney General where Mwalusanya J(as he then was)held that Ã¢â¬ËÃ¢â¬â¢there is no doubt that the absence of reasons would render the constitutional right of appeal and judicial review ineffective and illusionaryÃ¢â¬ I have come in the view that the administrative authority must omply with legality and proportionality test. ORDINARY JURISDICTION; The matter of jurisdiction is not a mere technicality but fundamental. And independence of judiciary is the spirit of the jurisdiction of the court. by the virtue of Article 107 of constitution, the court is conferred jurisdiction to provide justice. Independence of judiciary rely on the basis of condition of service and tenure, manner of appointment of judges and discharge of their duties, and degree of stability and logistical protection against outside pressure and harassment . ut judges are appointee s of President from another pillar, remunerations comes from executive, this is ridiculous. Also application of law must be of retroactively, and each case must be adjudicated objectively and on merit and not self interest of judges, and impartiality is paramount important. Refer the case of James Bita Vs Iddi kambi held that the judiciary is an instrument of state set up to adjudicate impartiality disputes between subjects and subjects or subjects and government. Judicial officer at any level should not flinch from performing this sacred duty.Therefore ,the court should not be subjected to the means which are not trustworthy and unreliable so as to enable this temple of justice to be free and dispense justice and justice only without fear. WRIT JURISDICTION;This includes writ of mandamus,prohibition,certiorari,and habeas corpus. , as stipulated under the law reform (fatal accident and miscellaneous provision)Act . The citizen may be aggrieved with the actions and decisions of admin istrative authorities and request upon the high court to make review and issue an order which is prayed.However, the court writ jurisdiction is oustered by other laws and cause the court to remain dumb in case of the abuse of of power by public authorities. Article 41(7) enshrines that there shall be no challenge from any person and no any court shall have the power to investigate or entertain the issue of legality of president who announced by National electoral commission. The court of law is jealous of its jurisdiction ,as held in Mtenga Vs UDSM that it is trite to observe that the court is and has to be for the protection of public ,jealous of its jurisdiction and will not lightly finds its jurisdiction oustered.Also presence of undue technicalities such as one can not ask for the judicial review unless he/she has obtained leave. This mean leave could defeat the interest of justice; frankly this is not proper approach to justice. in the case of Timothy Mwakilasa Vs Principal sec retary held that it is an admitted fact that applicant has not obtained any leave from this court to make his application. That being so, the purported application is incompetent in law and this court ca not entertain it. Court of law is guardian of citizen rights and it is a temple of justice in which everyone is free to access and attain justice.The means to reach it should not be complex but smooth and trustworthy so as to arrive at the peak of justice. PUBLIC OPINION AND MASS MEDIA; This two aspects are underscored under the article 18 , and constitutes a primary element of democratic society . It cannot be conceivable without free debate and freedom of media. However the freedom of collecting and publishing newspapers,magazines,books,bulletins are hampered by the government through the laws which are not trustworthy. Minister ,in his opinion on the ground of public interest may decide to bann any newspaper in the land .Forinstance banning of Mwanahalisi newspaper. this law oust ers the jurisdiction of the court ,in which the court is jealous on it. Also according to Africa media barometer report, Tanzania communication regulatory authority(TCRA) is not entirely independent since both board chairman and director general are presidential appointees. This situation can compromise impartiality of media. Harassment and killings of the journalists;wherejournalist tend to shock the higher authority by publishing some news ,entered in hostility with the power.On February 2010,journalist Asraj mvungi and others were arrested by police officer following the order from district officials that they instigate land conflict. in connection to that ,killing of one Daud Mwangosi (journalist)draws a road towards the killing of freedom of media. And another challenge is that media is owned by politicians, tycoons and religious institution, hence editorial freedom demises. Therefore ,the laws that regulates enhancement and betterment of the media is subjected to the absolute discretion of government authorities.This is ridiculous and peril towards transparency and accountability of the government of the day. Hence,with this path the end shall not be just. As I arrive to the conclusion ,I am of the view that trustworthy means and procedures are cornerstone towards a good end, and always an end justifies the means. therefore,it is high time for us to look back on our laws making bodies and interest of justice for the purpose of modifying them. it is my humble opinion that citizen and government has to respect and adhere constitutionalism and democracy.
Monday, July 29, 2019
Marketing of services - Essay Example The political system of the country provides favourable business framework for companies to operate efficiently and ethically (Clayton Utz 2012). Technological Australia is recognised to be a technologically developed country which adopts latest technology rapidly which further facilitates organisations to ensure greater competitive advantages (Clayton Utz 2012). The intellectual property as well as technology is protected with legal laws and frameworks to preserve integrity and financial reporting transparency in the industry (Clayton Utz 2012). These are the various external factors which are observed to be quite favourable for Beehive marketing when performing its business operations in an effective manner. The internal environment of the company can be analysed in-depth with the identification of its internal strengths as well as weaknesses. In this respect, the key internal strength of Beehive is determined to be the employees or staffs. Notably, the employees in Beehive are ski lful as well as committed who perform their activities effectively. Moreover, the employees are also observed to be operating as a team which in return improves its workplace culture substantially and thus creates an indirect influence on its production efficiency. The company possesses a good brand image in the worldwide market segment which can also be attributed as one of its major strengths. Furthermore, the company with its business values and nature will be successful in offering better services in relation to marketing solutions for business sectors. The main weakness of the company is that it lacks adequate and proper office space employing 3 employees. Moreover, the company is also observed to be facing the issue of communication gap and control...In this respect, the key internal strength of Beehive is determined to be the employees or staffs. Notably, the employees in Beehive are skilful as well as committed who perform their activities effectively. Moreover, the employee s are also observed to be operating as a team which in return improves its workplace culture substantially and thus creates an indirect influence on its production efficiency. The company possesses a good brand image in the worldwide market segment which can also be attributed as one of its major strengths. Furthermore, the company with its business values and nature will be successful in offering better services in relation to marketing solutions for business sectors. The main weakness of the company is that it lacks adequate and proper office space employing 3 employees. Moreover, the company is also observed to be facing the issue of communication gap and control with clients as no specific communication measures have been adopted thus far. The team members of the company are also not offered with training facilities in relation to social media, copywriting as well as event management. The company is also perceived to be lacking commitment as well as business plan for future growth and prosperity.
Sunday, July 28, 2019
Final 3 - Essay Example If successfully done, money laundering permits the criminals to have control over their incomes and lead to give a lawful cover up for income source. Money laundering plays a basic role in the goals of the terrorist, drug trafficker, the planned criminal, the tax evader, the inside dealer, also as many people who eschew the type of notice from establishment that abrupt wealth comes about from unlawful activities (Haggart, B., 2001). How is money laundered? There are various techniques of money laundering. The technique of prohibited money import is best when introductory traces are disappeared in the initial stage, finally leading to envoy or by the international transport gives physically the money to another country where rule of money market is not much developed or the legislation likes banking system. One good method of money laundering is nominal or smurfing partnership. In this technique, a group of couriers such as nominal partner or smurf keeps little amounts of deposits eac h day in different financial institutions. All the deposits are less than the amount which is less than the amount which asks for the attention of banks, value is less than the report limit. Money laundering- an international threat Money Laundering is seen as a personal improvement by few people, to the loss of many people. It draws up many resources from the public sector and also deterrent growth and investment. Money Laundering is the process via which the indignant suffer most (Haggart, B., 2001). According to IMF, the estimated global money laundering is approximately between $600 billion to $1.8 trillion per year. Former President Mobutu of Zaire stole approximately more than ten billion US dollars when he was in power. Nigeria also received help of around $1.1 billion for international development but Abacha stole almost $6 billion in his regime for himself and his family (Haggart, B., 2001). International Response to Money Laundering United States have been of the fore fron t in combating money laundering. The Bank Secrecy Act (BSA) which obliges the broad record reporting and keeping requirements on the financial institutions in an attempt to give the law enforcement agencies with records of financial obligations. The money laundering control Act of 1986 prevents the circumvention of the requirements set by BSA by which criminal liability is created for the individuals who carry out the transactions for money having any reason, or conducting the requirements of money knowingly, that the people concerned were involved in illegal activity (Gilmore, 1999). United Kingdom is also dedicated towards the Financial Action Task (FATF) which is concerned in taking actions against the money laundering. The recommendations on the terrorist financing comply with minimum international ways to safeguard against the illegitimate act of money laundering (Gilmore, 1999). Factors that have allowed Russian organized crime to flourish since the dissolution of the USSR The political and economic instability which followed the termination of Soviet Union in 1991 permitted a planned crime to merge all of its groups in Russia. The government held many huge enterprises and also role in formulating
Saturday, July 27, 2019
Factors leading to the collapse of Northern Rock and their current position - Dissertation Example After that it started to adapt aggressive steps in order to move high. The slowdown in the housing price inflation and an increase in the interest rate, Northern Rock issued warning regarding the profit of the bank. Soon the liquidity of the bank started to dry up and eventually pushed it towards collapse. The study tries to find out the factors that are responsible for the collapse of such a huge bank that was showing good business. At the same time it also focuses on the present condition of the bank. Table of Contents Abstract 2 Table of Contents 3 Chapter 1: Introduction 4 Chapter 2: Collapse of Northern Rock 5 Before Collapse 5 Reasons behind its collapse 7 Current Position 11 Chapter 3: Conclusion 12 REFERENCES 14 Chapter 1: Introduction The subprime mortgage financial crisis caused a steep rise in the subprime mortgage market of United States that started in the fall of year 2006 and became the cause of global financial crisis on July 2007. The newly-popular adjustable rate mo rtgages suffered an increase in the monthly payment due to the rising interest rates. Moreover the demise of the housing bubble caused the value of the property to suffer major decline leaving the house owners unable to meet their financial commitment and the leaders without any means of their losses. This financial crisis resulted into severe credit crunch, intimidating the solvency of many marginal banks and other financial institutions (Jansen, Beulig and Linsmann, 2010). Northern Rock was one of such banks that were severely hit by the waves of financial crisis. Among the entire spill over effects of the subprime crisis in US, the collapse of Northern Rock was the first in UK and was considered to be the most visible and perturbing for the authority of UK. This collapse exposed the tension that the central banks need to take some more stringent steps in order to enhance the liquidity support facilities. It also highlighted on the inherent difficulties that lay with the tripartite arrangements made to deal with the banking crisis, the deficiencies in the banking supervision and regulation in UK and the flaws evident in the deposit protection arrangement of UK (Hall, 2008). It also revealed the fragility of the banking system of UK, by shaking the complacency of the regulators, politicians and bankers, undermining the confidence of the general public on the banking system of UK and creating a calamitous effect on the economy of UK. All these reasons make it important to understand the situation that led to the collapse of Northern Rock. Hence the study highlights on the causes of collapse of Northern Rock and its current position. Chapter 2: Collapse of Northern Rock Before Collapse Northern Rock was the eighth largest bank of United Kingdom (UK). At the beginning of the year 2007 it was riding high and in June 2007, the share prices of the bank were seen to touch 1,000p and at the same time it announced that it has sold mortgage worth ?10.7bn, which was 47% higher than the figures of 2006. After it was demutualised in the year 1997, Northern Rock started growing rapidly in order to become the fifth largest mortgage lender of UK. The aggressive expansion of Northern Rock was funded by heavy reliance on unsecured and secured borrowings. About 50% of the funding came from securitization through a special purpose vehicle called Granite. The funds and retail deposits were seen to fall from 62.7% in
Friday, July 26, 2019
Translation review 5 - Essay Example A collective noun is a noun, which denotes a group of entities, and can be distinguished "from other nouns by a distinct patter of number contrast." It is therefore a single collective entity. It usually allows a flexible choice of pronoun as this can be either singular or plural depending on the perception of individuality within the group. As far as translation is concerned, the choice reflects a nuance in meaning relating to gender. English not only has a wider range of collective nouns than Arabic, it also "gives the speaker many such choices to express his attitude to the content of his message". And, as with translation in general, there are variations in the scope of meaning of words between languages. In Arabic, collective nouns "can be treated as singular depending on their form, and they can be treated as plural depending on their meaning" such as in saÃ¢â¬â¢ara and saÃ¢â¬â¢aruÃ¢â¬â¢ respectively. So pluralization of collectives is possible in both languages though the range of collectives is greater in English. Using examples of collective nouns, this study tests a group of 20 college students in backtranslating and presents the results with analysis. The hypothesis is that "testees are going to use the item group as the equivalent for most of the collective nouns of English." The findings showed that "most of the students faced problems in finding the exact equivalents for some of the nouns." The grammatical mistakes showed that "Arabic is richer in its grammatical system than English." The article addresses an issue in translation theory that has hitherto received little attention. It makes a thorough exploration of the issue of backtranslating by means of a test on sets of collective nouns. The number of testees is not much of an issue because in back translating we are concerned not with the quantity but the quality of the translation and the semantic precision. The topic is a good illustration of some of the difficulties of translating
Thursday, July 25, 2019
Common Leadership Traits - National Football League - Assignment Example Likewise, the methods for developing leaders in this industry would be determined; as well as the strategies for the manner by which industry leaders balance competing values and priorities. Finally, a proposal to avoid managerial derailment and failure would be provided, as required. First and foremost, the leaders in the football industry were identified to be the managers of the team, as well as the coaches (Macguire, 2013; Crust & Lawrence, 2006). The leadership traits in the industry were emphasized to focus on two crucial facets: Ã¢â¬Å"hardiness and mental toughness (i.e. achievement oriented, persistence, self-confidence, stress tolerance etc.)Ã¢â¬ (Crust & Lawrence, 2006, p. 37). Likewise, other leadership traits that were deemed essential for a football manager is summed, to wit: Ã¢â¬Å"the ability to function effectively, not just in terms of remaining healthy, but also in terms of decision-making and remaining clear and logical in thought when experiencing adversityÃ¢â¬ (Crust & Lawrence, 2006, p. 38). Other traits that were noted by Macguire (2013) to be common in football, and other sports, for that matter, were passion, possession of people skills and effective communication skills (or the ability to give clear instructions). Likewise, there are also traits which were studied to be important to be manifested by leaders in the football discipline to ensure success in the endeavor, such as: Ã¢â¬Å"adaptability, self-confidence, and persistence; as well as skills such as intelligence, creativity and knowledge of the groupÃ¢â¬ (Stogdill, 1974; cited in Crust & Lawrence, 2006, p. 41). Concurrently, for coaches, the common leadership traits that were observed and recommended to be present; and which allegedly influences the performance of players are as follows: closeness, commitment, and complementarity (Crust & Lawrence, 2006). From the interview conducted on football managers, most have asserted that leaders in this industry must be able to exercise their skills in discerning and managing their people.Ã Ã
Think Globl ct Locl Discuss th implictions of Thodor Lvitts sttmnt - Essay Example Onc compny introducs its products or srvics on th scond country-mrkt, it will unvoidbly b pron to impos its prvious xprinc, spcilly if th compny oprtion in th grt numbr of ntionl mrkts. Mrkting strtgy dcisions in such cs cn b bsd ginst th xtr-mrkt critri. For instnc, pric lvls r st up in ordr to limint th diffrnc mong mrkts nd to sustin pric corridor, comprd to th sitution whr you just purly rflct locl mrkt conditions. Subsidizing of pric lvls by multintionl is lso common prctic nd is usd for strtgic rsons. Strtgy of th compny tht is xpnding brod dpnds on mny fctors, in som cs it is just pursu of lrning nd somtims it is high profitbility trgt tht r st up upfront. nothr componnt of th mrkting mix tht is diffrnt nd should b tilord to th spcific mrkt is distribution chnnl infrstructur, which should b lso rsponsibl for mrkting strtgy. Th distribution ntwork hs lso to contribut lot to strtgy for growth, nd s rsult it is judgd on orgniztionl critri such s fsibility, lvl of risk, supportbility, nd control issus. Mnwhil, distribution mngmnt in domstic mrkts is mostly proccupid by th rliztion of lrdy xisting mrkting strtgis nd is minly judgd ginst fficincy or cost-minimiztion critri. Thodor Lv Thodor Lvitt's is fmous for nlyzing nd rconciling dilmms tht compny will ncountr onc gon intrntionl. On of his controvrsil rticl Mrkting Myopi stts tht succssful businss should not only know whn to ntr, but lso whn to xit th mrkts is sttd in on's of Lvitts' Mrkting Myopi rticl: "Th rilrods did not stop growing bcus th nd for pssngr nd fright trnsporttion dclind. Tht grw. Th rilrods r in troubl tody not bcus th nd ws filld by othrs (crs, trucks, irplns, vn tlphons), but bcus it ws not filld by th rilrods thmslvs. Thy lt othrs tk customrs wy from thm bcus thy ssumd thmslvs to b in th rilrod businss rthr thn in th trnsporttion businss. Th rson thy dfind thir industry wrong ws bcus thy wr rilrod orintd instd of trnsporttion-orintd; thy wr product-orintd instd of customr-orintd." Probbly thr r two ltrntivs tht compny cn dopt whil thinking globlly, "Think globl, ct locl" nd "Think locl, ct globl", th scond ltrntiv sms to b th pur rsult of th globliztion. Thodor Lvitt wrot in his rticl (1983, citd in Hrbig 1998) tht culturl prfrncs will blong to th pst nd th world will bcom mor nd mor th sm. Th nds nd wnts will bcom th sm vrywhr in th world. Lvitt implicitly sttd tht globl cmpigns will ttin long-stnding succss only whn thy will mt th nds of ch nd vry. H suggstd tk into considrtion th similritis nd do not focus too much on th diffrncs of culturs. To confirm his sttmnt Lvitt uss th xmpls of Coc-Col, McDonlds, Ppsi-Col nd Mrlboro. But in fct, thos compnis do not us Lvitts' id of th globl cultur strtgy. Or cours, Lvitt's work undrstimts th diffrnc btwn globliztion nd intrntionliztion, btwn multintionl nd globl corportion. Th dominnc of trditionl plyrs is rflctd through th intrntionliztion, nd th multintionl is focusd on th production of good for locl mrkts. In my o pinion, globliztion involvs nw typ of rltionship mong ll compnis nd countris. Th diffrnc btwn rgionl, intrntionl, nd globl mrkts is significnt points tht should b tkn into ccount by