Comparative Analysis of Islamic and Conventional Bank Risk Essay Example for Free

Comparative Analysis of Islamic and Conventional Bank Risk Essay The decline of the religion has been attributed into modern times with a materialistic culture by the popular wisdom of today, the understanding of religion has embedded this view, as nature having only spiritual limits, and the worldly well being of an individual is very detached in this relation. However, this understanding of Islam religion has been misguided by many of among us in the past, as well as in the present. A critical role has been played by every religion regarding the guidance to survive in a society communally, and in the characterization of different markets of that time. In the religious regards, equal distribution of wealth and debt annulment was preached and emphasized by every religion in the past. The enforcement of the debt bond has been strongly rejected by all the beliefs and the concept of canceling the debt have been upheld by them. In the past, in order to satisfy and fulfill the financial needs of devout and pious Muslims, a concept of money depository was introduced in the Islamic civilization, which has now become a growing phenomenon of the world, that is, around 1. 6 billion Muslims in the world. The macro-economic properties of banking institution have been studies by many economists with relation to an ideal and isolated Islamic economy framework. In modern days, the working of this pioneering financial system is going on very effectively in various parts of the world. In many developed and under-developed countries, the other conventional banking systems are having this unique financing system besides them in every sector of the economy. In this regard, the comparative analysis has been done in this study, which will try to differentiate the Islamic banking system with the Conventional ones. In this study, we will try to understand and clarify the demarcation between the Islamic and Conventional Banking and the risks that are borne by these methods of banking. A financial intermediary having the aims and objectives related to the principles of Islamic law or ‘Shariah’ may be defined as an Islamic Banking System. Consequently, the zero-interest activities and operations are the key features of this distinctive banking system. However, eliminating the transactions based on interest is not the only objective of Islamic banking. The abolishment of all kinds of exploitation is also another aspect of Islamic banking system. In result, a balanced and unbiased social order is established by the system in this regard. Only the role of financier is not played by an Islamic bank. It also works as a partner in the business of an individual. Due to this, the risk between the capital owner and the entrepreneurs is involved by this system. However, the positive result of the collective efforts is also shared by the Islamic banking. Thus, the other conventional banking and interest-based system differs from the Islamic banking, as only the entrepreneur or the owner of the capital bears the risk in the conventional banking, and vice versa. However, the individual and bank shares the abovementioned with each other, which provides the entrepreneur to develop as a whole. In other way, participatory banking name can be given to the Islamic banking in this regard. In the Islamic economics, zero return on capital is not meant by the eliminating process of the interest in this unique banking system, as the pre-determination of a fixed return is forbidden for a certain amount of production in the Islamic laws. The equity based investment principle is followed by the Islamic banks. The contraction of the resources based on deals relating to the sharing of risks, and the ventures of capital is also proposed by the Islamic banking. It has been noted by the economists that economic growth and development of an individual becomes applicable and easy with the vital role that is played by the Islamic banks around the world. We can say that a relationship between finance, commerce, and industry is tried and developed by this exclusive banking system, which differs from the other conventional banking due to these characteristics of its system. The Islamic banking plays its role as an equity-based system, where the pre-determined interest rate is excluded, and the nominal value of deposits is not guaranteed. In result, changing values of the share deposits absorbs the shock to asset position immediately. Therefore, in such system, the assets and liabilities of bank will carry the same real value at all the points. However, in the more traditional and conventional banking system, a diversion can be caused between the real assets and liabilities by such shocks in the process of fixed nominal value of deposits. Therefore, the abovementioned features of this Islamic banking differs it from the traditional and conventional banking system, and so, various levels of risks are borne by these systems. Nowadays, many countries are trying to examine the possibilities of the introduction of an interest-free banking system based on the Islamic laws and principles. It has also been argued and discussed that if the Islamic financial system will be established in the various countries, it will be feasible, but also profitable for the individuals, as well as, the companies as a whole. These days, the truth of interest as an unbearable burden is being realized by the Western countries, as well as, the developing countries around the world. In this regard, all the interests have been waived by the Canada. A similar move has been made by the Australia. The suggestion of waiving off the 30 to 35% of the present interests of the debt has been officially given by the President of France. Therefore, it may be generalized that Islamic Banking and Financing System is a unique and distinctive system, which differs from the conventional banking systems around the world. In order to make a more detailed comparative view of the working and risks borne by the Islamic and Conventional Banking Systems, we will try to analyze with the help of data that represents the comparison between these two financial systems that are applied and practiced around the world. There are some different and diverse characteristics of the abovementioned two banking systems, which should be discussed in order to clarify the comparison between them. In the Islamic Financing system, the number of customers is less than the Marketing-based financing system. The ownership of the Islamic Banking is usually taken by the local or foreign individuals. However, only the local shareholders enjoy the ownership in the conventional banking system. In the Islamic banking, the integration of different activities is very high as compared to the traditional banking system. Lastly, the Islamic financing system has the high intensity of managing and bearing the risk internally, as well as externally. However, the risk is managed and borne by the Marketing-based financing system less internally and externally. Risk sharing is closely related to the risk management; no matter it may be external or internal in its nature. Development of close ties between the customers, and other interest groups may bring the risk externalization by an organization. It has also been indicated by various economists that one contributing factor that is related to the risk management is the long-term relations, which are made on the mutual dependence in an organization. From the different studies related to the Islamic Financing System, the responsibilities are shared by the junior and the senior staff jointly in organizations. In this case, the higher and lower level of management shares the risk. However, in the Marketing-based and Conventional Banking system, the internal risk is shared on a lower basis due to the centralization of power and authority, as compared to the Islamic Banking System. Conclusively, a high degree of the sharing of internal risk is characterized during managing the risk management in the Islamic Banking system as compared to the other conventional financing systems. Therefore, there are many differentiation between the Islamic and Traditional Banking systems around the world. Regarding the risk externalization, in the Islamic Banking system, the close lender-borrower relationships are characterized during the lending activities of organizations. The borrowers are also guided by the Islamic bankers apart from lending funds to them. In result, efficient network relationships create the increment of the externalization of risks relating to the partners who exchange in this regard. Therefore, in the Islamic Financing System, the degree of external risk is observed to be high. However, the formal lenders-borrowers relationships are characterized within the Conventional and Marketing-based financing system. In the result, it is a low degree of externalization of risks in this traditional banking system. In this regard, the extent of success of a banking organization is determined by the lender-borrower relationships, where the customers are given credit in this regard. Direct contacts with the various customers are maintained within the Islamic, as well as, the Conventional Financing Systems. The differentiation is observed in the Islamic Banking System while dealing with the financial activities, as the borrowed funds are monitored closely by these bankers, which results in the higher intensity of the lender-borrower relationships. In this regard, the risks are borne on a higher extent by the Islamic Banking system as compared to the conventional ones. However, the bank gets the higher profit as we have tried to discuss it in the abovementioned matter. Conclusively, the issues of fairness and justice are concerned in the Islamic principles that are related to the interest, rather than defining the efficiency narrowly. The focus is placed on the necessity of sharing the risk in a stable condition with the help of these principles, as well as, at the time of exploitation of the markets. We have also clarified that the Islamic Financing System works on the equity-based projects. However, the conventional ones prefer the debit-based schemes for the lenders and individuals. In an Islamic financing situation, the ownership is shared by the both bank and the client, and in the Conventional banking, all the equity is owned by the client, and the property value plays as a security to the bank loan. We hope that this study will help the scholars and the economists in understanding the role and differentiation of the Islamic Conventional Banking around the world. Works Cited Ahmad, S. (1992). Towards Interest-Free Banking. New Delhi: International Islamic Publishers. Chapra, M. (2000). The Future of Economics: An Islamic Perspective. Leicester, UK: The Islamic Foundation. Dar, A. H. , and Presley, J. R. (1999). Islamic Finance: A Western Perspective. International Journal of Islamic Financial Services. Dar, A. (2002). Islamic House Financing in the United Kingdom: Problems, Challenges, and Prospects. Ahmad, K. (1994). Elimination of Riba: Concepts and Problems, Response to the Supreme Court Questionnaire. Institute of Policy Studies, Islamabad, Pakistan.

Can The Prince be Applied to the Politics of Modern Society? Essay

Niccolà ³ Machiavelli wrote The Prince in order to set forth certain guidelines the ruler of a state must follow in order to rule successfully. During Machiavelli’s time the world was filled with monarchies and other forms of government that act differently from the common democracy that is in the world today. Could a political book written in the 16th century still have value in today’s politics? In order to answer this question, this paper will take an in depth look at Barrack Obama, to determine whether he is following the guidelines Machiavelli has created. I argue that the majority of the guidelines are still followed today, thus The Prince sets forth ideas that still hold value in today’s political society. Niccolà ² di Bernadrdo de’ Machiavelli was a resident of Florence, Italy, andwas unable to participate in government due to the lack of his father’s wealth (Rebhorn, Introduction, pg.15). Little is known about Machiavelli’s youth; records of him don’t start showing up again until 1498 when he was reinstalled in the newly elected city government, which had just overthrown the Medici family. There he worked in numerous government positions until 1512 when Spain invaded Italy and the Medici family reclaimed power. They imprisoned him and he was eventually exiled outside of Florence. This is where he wrote The Prince, as a guide for Italy and Florence to have a balance of power and control. His writings are based on the current political atmosphere of his time and historical examples from other states, in order to create a certain guideline to monarchs on how they should rule (Rebhorn, Introduction, pg. 15). First Machiavelli gives the guidelines for how a new principality should be created from an existing one. In the ... ...KWTX, 27 Oct. 2008. Web. 08 May 2014. Leigh, David, James Ball, Ian Cobain, and Jason Burke. "Guantà ¡namo Leaks Lift Lid on World's Most Controversial Prison." The Guardian. Guardian News and Media, 25 Apr. 2011. Web. 15 Apr. 2014. Machiavelli, Niccolà ², and Wayne A. Rebhorn. The Prince and Other Writings. New York: Barnes & Noble Classics, 2003. Print. Manuel, Dave. "US Military Spending Over the Years." DaveManuel.com. N.p., 14 June 2010. Web. 16 Apr. 2014. McHenry, Robert. "Impeach Obama, Already?" Encyclopedia Britannica Online. Encyclopedia Britannica, 10 Nov. 2008. Web. 08 May 2014. Peter, Bergen, Sterman David, Emily Schneider, and Bailey Cahall. "Do NSA's Bulk Surveillance Programs Stop Terrorists? | NewAmerica.org." Do NSA's Bulk Surveillance Programs Stop Terrorists? New America Foundation, 13 Jan. 2014. Web. 14 Apr. 2014.

Inner Journey Cosi

William F Buckley quoted â€Å"If all difficulties were known at the outset of a long journey most of us would never start at all†. This quote relates to journeys, specifically to inner journeys with the intention that many journeys are difficult and if individuals knew how difficult the journey was going to be, then most of us would not even commence the journey. A journey is simply a movement from one place to another. Physical journeys are gateways to inner journeys, which is a journey of the mind and spirit. Inner journeys take place when an individual experiences events or is involved in relationships that act as a catalyst to gain greater understanding about themselves and the world. Inner journeys can be deliberately initiated, but is usually the result of new circumstances where the individual changes themselves or their perspective of themselves, others or the world. Cosi the play written by Louis Nowra, the poem from the stimulus booklet, The Road Not Taken, written by Robert Frost, the film Coach Carter, directed by Thomas Carter and the song lyrics At Seventeen by Janis Ian are all texts which show an inner journey has taken place where perceptions of an individual, others and the world has changed. In studying this concept of inner journey through these texts, my understanding of individuals, the world and myself has significantly been expanded and developed to a large extent, and I too have experienced an inner journey as my views of myself, individuals and the world has changed. In the play Cosi an inner journey takes place unexpectedly in the protagonist, Lewis. Lewis gets a job with mental patients directing a play and at first is apprehensive about working with mental patients, though Lewis learns to respect the patients and treat them as individuals. Nowra uses a range of techniques such as dialogue, contrast lighting and metaphors to show the inner journey and the change occurring in Lewis. The use of dialogue demonstrates the change in Lewis. Before Lewis began his inner journey he saw political issues more important than love and fidelity, ‘love is not so important nowadays’ Lewis says in Act 1. At the end of the play, Lewis’s priorities, attitudes and values have changed as he realises that politics is not as important as love and fidelity. In Act Two, Lewis says to Lucy about the play ‘its about important things, like love and fidelity’ revealing that his priorities have changed. Lewis’s catalyst to begin his journey was his need for money. He says in Act One ‘I need the money, Lucy’, but by the end of the play he has grown to love the patients, become friends with them and see them as human beings ‘they need me†¦I’m not going to let them down’, Lewis says to Lucy in Act 2. The contrast with Lewis, and Nick and Lucy highlights the change in Lewis, as Nick and Lucy do not change, and do not experience an inner journey as they continue to see the world in terms of politics, and never come to an understanding of the important things like love and fidelity. Some inner journeys do not result in a change, which is the case with the mental patients, though they do gain confidence and come out of their shells. Lighting is another way in which Nowra demonstrates Lewis’s inner journey, and his learning experiences. The play begins in a burnt-out theatre, it is dark, which is a metaphor for Lewis’ lack of awareness, and Lewis is trying to find a light. In the middle of the play, during rehearsals, the lights go out and Lewis and Julie kiss. The lights come back on which suggests a transition has taken place, that Lewis is no longer ‘in the dark’ and is now at similar levels of the patients, as he starts to see them as ‘normal’. The outcome for Lewis is that he gains understanding and learns a lot about himself, others and the world. My knowledge of inner journeys has expanded deeply, as I now know, not all people change extensively as a result of inner journeys, but learning experiences. The poem The Road Not Taken is an extended metaphor for life and the difficult choices we are faced with and must making during out life journey. The metaphor transfers the journey from a physical one. The persona is confronted with the choice of two roads, both fairly similar ‘two roads diverged in a yellow wood’, and must decide which one he wants to travel. This is similar to Lewis’s situation where he has to decide between politics, and true love and fidelity and which is more important. The persona, with ultimately choosing the one that was ‘grassy and wanted wear’ and the ‘ one less travelled by’. He wanted to break away from the norm and experience something new. This road may be more rewarding despite the fact it presents more challenges. The inner journey is depicted through the use of language techniques such as, extended metaphor, first person pronoun, repetition and symbolism. The use of first person pronoun ‘I’ shows that it is a personal journey where choices need to be made. The repetition of ‘I’ in the last stanza highlights the speaker’s solitude and that he is proud of the choice he has made ‘and I-I took the one less travelled by’, also emphasises that we are responsible for our own decisions on our own journey. It helps the audience connect to the poem and inturn reflect on their own inner journey experiences. Frost uses symbolism in the word in the first line of the first stanza in ‘yellow’ of the wood. This symbolises the season autumn and the autumnal time in ones life where time is running out and decisions need to be made, this demonstrates the start of his inner journey. The speaker wants to choose both roads but knows he can only decide on one road to travel, and has regret in ‘Sorry I could not travel both and be one traveller’, this is like many of life decisions. In the end, the persona is satisfied with the decision and the inner journey has transformed him into a unique individual and ‘made all the difference’. In learning about Frost’s poem, it has helped me understand the difficult choices we are faced with making everyday and how we wonder ‘what if’ even after the choice has been made. I have come to an understanding about the world as decisions we make today, have a huge effect on our future and what tomorrow will be like. It is evident that in Coach Carter an inner journey has taken place in the young characters, just like Lewis in Cosi. The film covers the story of Coach Ken Carter, a basketball coach given the job to coach a high-school basketball team, Caucasian and predominantly African American young, troubled and angry boys. Junior, Jason, Cruz, Worm and Kenyon are the only boys that change significantly, as a result of an inner journey. Like the mental patients in Cosi, Coach’s son Damien, who is also part of the team, goes on an inner journey but does not result in a significance change, only learning experiences. The director, Carters uses various techniques including characterisation, contrast, language and dialogue to show the boys inner journey taking place. Coach sets rules and guidelines for the boys to follow with basketball and school and if they do adhere there are consequences. ‘I took this job because I wanted to affect change in a special group of young men’ Coach says. Coach is the boy’s catalyst for their inner journey. Before the boys met Coach they were academically troubled as they were skipping classes as well as basketball practice and therefore losing a majority of their basketball games. Carter successfully uses characterisation of the boys throughout the film to show their alteration. Contrast is used in the language of the boys before and after their journey, to show that the inner journey has taken place to the audience. At the beginning of the film the boys used harsh, vulgar language, ‘nigga’ and ‘dog’. This is contrasted with their language at the end of the film, as they no longer use derogatory language instead, they treat people with respect. This is shown in the language when they refer to Coach as ‘sir’. The boys eventually reach their expected grade point average and win all their basketball games. The boy’s alteration is shown through dialogue with the boys and Coach. At the beginning of the film, Worm rudely asks Coach ‘are you some country church nigga? ’. This dialogue is compared with the dialogue at the end ‘Sir, I just want to say thankyou, you saved my life’, Worm tells Coach. This shows that Worm’s inner journey was a success. Coach tells the boys ‘I came to coach basketball players and they became students, I came to teach boys and they became men’. This dialogue of Coach shows the boy’s transformation from boys to men. The boys had two paths to choose from, like the persona in The Road Not Taken. The boys chose the path that was most difficult, as it would require them to work and study hard in school. Coach said ‘I promise to do everything in my power to get you to college and a better life’, and that’s exactly what he did. At the end of the film, the boys lost their championship, but they ‘achieved something that most people spend their whole lives trying to find, that ever-elusive victory within’. The boys learnt that there is much more in life than winning basketball. Watching this film has helped me to understand that a relationship can act as a catalyst for inner journeys, and can have a significant effect on an individual’s life. At Seventeen, is a song and an example of an inner journey and how inner journeys can change an individual’s perception of things or people. The inner journey in this text is the journey of growing up and seeing life from a different perspective. It is Ian’s reflection of her teenage life at ‘seventeen’, the pains of growing up and what it was like being unattractive and unpopular when ‘names were never called when choosing sides for basketball’. This song was recorded when Ian was twenty-four, by then she was older and wiser. In Ian’s younger years she was not socially accepted and back then to her, it meant everything to be a ‘beauty queen’. Through the use of techniques such as dialogue, first and second person, symbolism and past and present tense, Ian is able to emphasise her inner journey. Ian’s experiences of ‘lacking in the social graces’ and ‘inventing lovers on the phone’ are revealed through dialogue. This technique highlights she was once different and uneducated by the ways of popularity and lived in an unreal world to appear popular to society. Her journey has transformed her into a mature adult and ‘it was long ago and far away’. She has now developed as a person because of her experiences as a teenager. The use of both first and second person lyrics in ‘I learned the truth at seventeen’ and ‘those of us with ravaged faces’ makes the song more personal and shows delve into the personas deepest thoughts, as she recalls them and allows the listener to identify with how she is feeling. It helps the listeners to empathise and connect with the song as many teenagers today are experiencing a similar inner journey of acceptance and adolescence life. Ian has used symbolism in ‘ugly-duckling girls like me’, and the implication here is that she turns into a swan eventually, which symbolises that she grows into a well-accepted human being. This change highlights that an inner journey has occurred as Ian has learnt to accept herself and that there is more to life than looks. The technique of past tense used in ‘called’ and present tense in ‘call’ is used by Ian to reflect and show her perspective changing over time, as she has travels on the inner journey of life. At Seventeen articulates that as you get older you view life differently because of your past experiences and inner journeys. These composers have each explored the concept of inner journey through various techniques to highlight the inner journey taken place. In studying these texts my understanding has been developed has expanded. I have acknowledged that inner journeys are an important part of everybody’s life and this allows individuals to gain greater understanding about themselves, others and the world.

How to Fix Problems with Parallel Sentence Structure

The Common Core, as well as portions of many standardized tests, require  students to recognize and improve poorly-constructed sentences. It’s important for students to know what problems appear frequently within these sentences  in order to improve their chances of scoring well. One common sentence problem involves non-parallel structure. Parallel Structure in a Sentence or Phrase Parallel structure involves using the same pattern of words or the same voice in a list of items or ideas. By using parallel structure, the writer indicates that all of the items in the list are of equal importance. Parallel structure is important in both sentences and phrases. Examples of Problems with Parallel Structure Problems with parallel structure usually occur after coordinating conjunction such as or or and. Most are a result of mixing gerunds and infinitive phrases or mixing active and passive voice. Mixing Gerunds and Infinitive Phrases Gerunds are verb forms that end with the letters -ing. Running, jumping, and coding are all gerunds. The following two sentences correctly use gerunds in parallel structure: Bethany enjoys baking cakes, cookies, and brownies.She doesn’t like washing dishes, ironing clothes, or mopping the floor. The  sentence below  is incorrect, however, because it mixes gerunds (baking, making) and an infinitive phrase (to eat out): Bethany likes to eat out,  baking cakes, and making candy. This sentence contains an unparallel mixture of a gerund and a noun: She doesn’t like washing clothes or housework. But this sentence contains two gerunds: She doesn’t like washing clothes or doing housework. Mixing Active and Passive Voice Writers can correctly use either the active or the passive voice--but mixing the two, especially in a list, is incorrect. In a sentence that uses the active voice, the subject performs an action; in a sentence that uses the passive voice, the action is performed on the subject. For example: Active voice: Jane ate the donut. (Jane, the subject, acts by eating the donut.) Passive voice: The donut was eaten by Jane. (The donut, the subject, is acted upon by Jane.) Both of the above examples are technically correct. But this sentence is incorrect because the active and passive voices are mixed: The director told the actors that they should get a lot of sleep, that they should not eat too much, and to do some vocal exercises before the show. A parallel version of this sentence might read: The director told the actors that they should get a lot of sleep, that they should not eat too much, and that they should do some vocal exercises before the show. Parallel Structure Problems in Phrases Parallelism is necessary not only in full sentences but also in phrases, as well: The British Museum is a wonderful place to see ancient Egyptian art, find beautiful  textiles from around  the  world, and  you can explore African artifacts. This sentence sounds jerky and out of balance, doesn’t it? That’s because the phrases are not parallel. Now read this: The British Museum is a wonderful place where you can find ancient Egyptian art, explore African artifacts, and discover beautiful textiles from around the world. Notice that each phrase has a verb and a direct object. Parallelism is necessary when a series of words, thoughts, or ideas appear in one sentence. If you encounter a sentence that just sounds wrong or clunky, look for conjunctions like and, or, but, and yet to determine whether the sentence is off balance.