Improving Schools Essay Example for Free

Improving Schools Essay There are many improvements that can be made to our school. These improvements will progress the school into a higher grade of learning for students. There are many different facets to our school and small, inexpensive, environmentally friendly changes need to be made. Making changes to the school will help the students achieve higher grades, and therefore have even more university and college acceptance. Improvements such as free internet, a library on campus and free parking will for sure be solutions with a positive aftermath. My first suggestion to improving the school is free internet. Internet can be a positive solution for those students in St. Louis that English is not their first language. They can access translation sites to help them better understand the reading material and course assignments. Diagrams for courses with maps and graphs can be accessed on the internet. This will save paper for teacher, therefore creating a more environmentally friendly place and also will help students see the diagrams first hand in colour. We have decided as a democratic society that education is a right, with this right we must provide the tools to make it accessible, the internet will further progress students learning in variable ways. My second suggestion is that we have a library on campus. Through the library we can borrow books; this is a great solution to those who can’t afford to buy books. Buying books outside of school can be expensive and what can you do with them after you read them, borrowing them for the library is a simple and environmentally friendly solution. The library is a good place also to work on assignments and group projects on the lunch hour, this helps students get the work done and hand it in on time and also provides a work space other than their house. In addition to the above point, since we decided education is a right, it is imperative that a library be added for those who can’t afford a computer, internet etc. A library is a place for those to access the tools to have a better learning experience such as typing out assignments and accessing internet for class. We have decided education is a right but again we must provide to make that right available to all. Lastly, we should have free parking. Free parking has many positive variables. For instance, if we issue free parking for students we could insist that students carpool to reduce parking space demand, this will also lower our ecological footprint and therefore be good for everyone. Students coming from Cambridge, have a hour long bus ride to  get to the Kitchener campus and most of them have to come to the the Kitchener campus because Cambridge doesn’t offer University level courses. Free parking would make that drive less of a hassle that it already is. Also many students as St. Louis have kids and or a job. Free parking would aid in getting to work on time, or getting their child from daycare on time. In conclusion, our school has made a great start. But it is time to make even more effort to make students success more efficient. With solutions like free internet, a library and free parking we will reduce our ecological impact, make student life more enjoyable, and having a higher acceptance to University and College. We have decided that schooling is a right, with that we need to give students what they need to succeed. Our society will better from educated people that can support themselves, rather than people that depend on society. Education is not only for the now, it is forever.

Baldwins Effects of Narration and Analysis in Notes of a Native Son Es

Baldwin’s Effects of Narration and Analysis in â€Å"Notes of a Native Son† Personal stories and descriptions of major events are narrated throughout James Baldwin’s works as he analyzes the nature of the relationship between white and black America. The marriage of narration and analysis are especially evident in Baldwin’s essay, â€Å"Notes of a Native Son.† As Baldwin describes his father and their relationship until his father’s death, he simultaneously comments about the relationship between white and black America. Baldwin compares the events of his experience with concurrent American events to conclude about the nature of his personal relationships and the relationship between races; namely, that one must come to accept the reality of mankind, yet must strive to fight the injustice inherent in mankind’s nature. Baldwin begins with a brief description of the 1943 Detroit and Harlem riots and his father’s funeral. Both riots were centered on resistance to injustice, while the death of Baldwin’s father marked the end of oppression in Baldwin’s life as seen later in the work. These two events juxtaposed in the opening paragraph propose the questions that Baldwin works to answer by the end of his essay. Baldwin concludes his opening paragraph with â€Å"we drove my father to the graveyard through a wilderness of smashed plate glass† (63). The first question is â€Å"why death?† while the second question is â€Å"why resist?† Baldwin’s father is never named in the work but is always referred to as â€Å"my father.† This ambiguity allows Baldwin’s father to play dual roles throughout the work as both the oppressor and as the oppressed, symbolizing both white and black America. Almost immediately, Baldwin points out ... ... one must acknowledge mankind for what it is and the associated injustice without reserve; however, one must also resist the injustice inherent in mankind. This applies to the struggle between races as well as it applied to Baldwin’s relationship with his father. The initial questions proposed by â€Å"Notes† are answered in a general warning: hate breeds death and destruction, so resist the injustice where hate is conceived while accepting the unjust for who they are. It is through both personal and general experiences that Baldwin arrives at his final conclusion, offering a warning to society and the individuals within: hate only causes destruction and must be put aside before positive gains may be achieved. Works Cited Baldwin, James. â€Å"Notes of a Native Son.† 1955. James Baldwin: Collected Essays. Ed. Toni Morrison. New York: Library of America, 1998. 63-84.

Night World : Dark Angel Chapter 2

Everything was freezing confusion. Her head was under water and she was being tumbled over and over. She couldn't see, couldn't breathe, and she was completely disoriented. Then her head popped up. She automatically sucked in a huge gasp of air. Her arms were flailing but they seemed tangled in her backpack. The creek was wide here and the current was very strong. She was being swept downstream, and every other second her mouth seemed to be full of water. Reality was just one desperate, choking attempt to get enough air for the next breath. And everything was so cold. A cold that was pain, not just temperature. I'm going to die. Her mind realized this with a sort of numb certainty, but her body was stubborn. It fought almost as if it had a separate brain of its own. It struggled out of her backpack, so that the natural buoyancy of her ski jacket helped keep her head above water. It made her legs kick, trying to stand firm on the bottom. No good. The creek was only five feet deep in the center, but that was still an inch higher than Gillian's head. She was too small, too weak, and she couldn't get any kind of control over where she was going. And the cold was sapping her strength frighteningly fast. With every second her chances of surviving dropped. It was as if the creek were a monster that hated her and would never let her go. It slammed her into rocks and swept her on before her hands could get hold of the cold, smooth surfaces. And in a few minutes she was going to be too weak to keep her face above water. I have to grab something. Her body was telling her that. It was her only chance. There. Up ahead, on the left bank, a projecting spit with tree roots. She had to get to it. Kick. Kick. She hit and was almost spun past it. But somehow, she was holding on. The roots were thicker than her arms, a huge tangle like slick, icy snakes. Gillian thrust an arm through a natural loop of the roots, anchoring herself. Oh-yes; she could breathe now. But her body was still in the creek, being sucked away by the water. She had to get out-but that was impossible. She just barely had the strength to hold on; her weakened, numb muscles could never pull her up the bank. At that moment, she was filled with hatred- not for the creek, but for herself. Because she was little and weak and childish and it was going to kill her. She was going to die, and it was all happening right now, and it was real. She could never really remember what happened next. Her mind let go and there was nothing but anger and the burning need to get higher. Her legs kicked and scrambled and some dim part of her knew that each impact against the rocks and roots should have hurt. But all that mattered was the desperation that was somehow, inch by inch, getting her numb, waterlogged body out of the creek. And then she was out. She was lying on roots and snow. Her vision was dim; she was gasping, open-mouthed, for breath, but she was alive. Gillian lay there for a long time, not really aware of the cold, her entire body echoing with relief. I made it! I'll be okay now. It was only when she tried to get up that she realized how wrong she was. When she tried to stand, her legs almost folded under her. Her muscles felt like jelly. And †¦ it was cold. She was already exhausted and nearly frozen, and her soaking clothes felt as heavy as medieval armor. Her gloves were gone, lost in the creek. Her cap was gone. With every breath, she seemed to get colder, and suddenly she was racked with waves of violent shivers. Find the road †¦ I have to get to the road. But which way is it? She'd landed somewhere downstream-but where? How far away was the road now? Doesn't matter†¦ just walk away from the creek, Gillian thought slowly. It was difficult to think at all. She felt stiff and clumsy and the shivering made it hard to climb over fallen trees and branches. Her red, swollen fingers couldn't close to get handholds. I'm so cold-why can't I stop shivering? Dimly, she knew that she was in serious trouble. If she didn't get to the road-soon-she wasn't going to survive. But it was more and more difficult to call up a sense of alarm. A strange sort of apathy was coming over her. The gnarled forest seemed like something from a fairy tale. Stumbling†¦ staggering. She had no idea where she was going. Just straight ahead. That was all she could see anyway, the next dark rock protruding from the snow, the next fallen branch to get over or around. And then suddenly she was on her face. She'd fallen. It seemed to take immense effort to get up again. It's these clothes†¦ they're too heavy. I should take them off. Again, dimly, she knew that this was wrong. Her brain was being affected; she was dazed with hypothermia. But the part of her that knew this was far away, separate from her. She fought to make her numbed ringers unzip her ski jacket. Okay†¦ it's off. I can walk better now†¦ She couldn't walk better. She kept falling. She had been doing this forever, stumbling, falling, getting up. And every time it was a little harder. Her cords felt like slabs of ice on her legs. She looked at them with distant annoyance and saw that they were covered with adhering snow. Okay-maybe take those off, too? She couldn't remember how to work a zipper. She couldn't think at all anymore. The violent waves of shivering were interspersed with pauses now, and the pauses were getting longer. I guess †¦ that's good. I must not be so cold—– I just need a little rest. While the faraway part of her brain screamed uselessly in protest, Gillian sat down in the snow. She was in a small clearing. It seemed deserted-not even the footprints of a ground mouse marked the smooth white carpet around her. Above, overhanging branches formed a snowy canopy. It was a very peaceful place to die. Gillian's shivering had stopped. Which meant it was all over now. Her body couldn't warm itself by shivering any longer, and was giving up the fight. Instead, it was trying to move into hibernation. Shutting itself down, reducing breathing and heart rate, conserving the little warmth that was left. Trying to survive until help could come. Except that no help was coming. No one knew where she was. It would be hours before her dad got home or her mother was†¦ awake. And even then they wouldn't be alarmed that Gillian wasn't there. They'd assume she was with Amy. By the time anyone thought of looking for her it would be far too late. The faraway part of Gillian's mind knew all this, but it didn't matter. She had reached her physical limits-she couldn't save herself now even if she could have thought of a plan. Her hands weren't red anymore. They were blue-white. Her muscles were becoming rigid. At least she no longer felt cold. There was only a vast sense of relief at not having to move. She was so tired†¦ Her body had begun the process of dying. White mist filled her mind. She had no sense of time passing. Her metabolism was slowing to a stop. She was becoming a creature of ice, no different from any stump or rock in the frozen wilderness. I'm in trouble†¦ somebody†¦ somebody please†¦ Mom †¦ Her last thought was, it's just like going to sleep. And then, all at once, there was no rigidity, no discomfort. She felt light and calm and free-and she was floating up near the canopy of snowy boughs. How wonderful to be warm again! Really warm, as if she were filled with sunshine. Gillian laughed in pleasure. But where am I? Didn't something just happen-something bad? On the ground below her there was a huddled figure. Gillian looked at it curiously. A small girl. Almost hidden by her long pale hair, the strands already covered in fine ice. The girl's face was delicate. Pretty bone structure. But the skin was a terrible flat white-dead looking. The eyes were shut, the lashes frosty. Underneath, Gillian knew somehow, the eyes were deep violet. I get it. I remember. That's me. The realization didn't bother her. Gillian felt no connection to the huddled thing in the snow. She didn't belong to it anymore. With a mental shrug, she turned away- -and she was in a tunnel. A huge dark place, with the feeling of being vastly complicated somehow. As if space here were folded or twisted-and maybe time, too. She was rushing through it, flying. Points of light were whizzing by-who could tell how far away in the darkness? Oh, God, Gillian thought. It's the tunnel. This is happening. Right now. To me. I'm really dead. And going at warp speed. Weirder than being dead was being dead with a sense of humor. Contradictions†¦ this felt so real, more real than anything that had ever happened while she was alive. But at the same time, she had a strange sense of unreality. The edges of her self were blurred, as if somehow she were a part of the tunnel and the lights and the motion. She didn't have a distinct body anymore. Could this all be happening in my head? With that, for the first time, she felt frightened. Things in her head†¦ could be scary. What if she ran into her nightmares, the very things that her subconscious knew terrified her most? That was when she realized she had no control over where she was going. And the tunnel had changed. There was a bright light up ahead. It wasn't blue-white, as she would have expected from movies. It was pale gold, blurred as if she were seeing it through frosty glass, but still unbelievably brilliant. Isn't it supposed to feel like love or something? What it felt like-what it made her feel-was awe. The light was so big, so powerful†¦ and so Just Plain Bright. It was like looking at the beginning of the universe. And she was rushing toward it so fast-it was filling her vision. She was in it. The light encompassed her, surrounded her. Seemed to shine through her. She was flying upward through radiance like a swimmer surfacing. Then the feeling of motion faded. The light was getting less bright-or maybe her eyes were adapting to it. Shapes solidified around her. She was in a meadow. The grass was amazing- not just green, but a sort of impossible ultra green. As if lit up from inside. The sky was the same kind of impossible blue. She was wearing a thin summer dress that billowed around her. The false color made it seem like a dream. Not to mention the white columns rising at intervals from the grass, supporting nothing. So this is what happens when you die. And now†¦ now, somebody should come meet me. Grandpa Trevor? I'd like to see him walking again. But no one came. The landscape was beautiful, peaceful, unearthly-and utterly deserted. Gillian felt anxiety twisting again inside her. Wait, what if this place wasn't-the good place? After all, she hadn't been particularly good in her life. What if this were actually hell? Or †¦ limbo? Like the place all those spirits who talked to mediums must be from. Creatures from heaven wouldn't say such silly things. What if she were left here, alone, forever? As soon as she finished the thought, she wished she hadn't. This seemed to be the kind of place where thoughts-or fears-could influence reality. Wasn't that something rancid she smelled? And-weren't those voices? Fragments of sentences that seemed to come from the air around her? The kind of nonsense said by people in dreams. â€Å"So white you can't see†¦Ã¢â‚¬  â€Å"A time and a half†¦Ã¢â‚¬  â€Å"If only I could, girl†¦Ã¢â‚¬  Gillian turned around and around, trying to catch more. Trying to figure out whether or not she was really hearing the words. She had the sudden gut-trembling feeling that the beauty around her could easily come apart at the seams. Oh, God, let me think good thoughts. Please. I wish I hadn't watched so many horror movies. I don't want to see anything terrible-like the ground splitting and hands reaching for me. And I don't want anyone to meet me-looking like something rotting with bones exposed-after all. She was in trouble. Even thinking about not thinking brought up pictures. And now fear was galloping inside her, and in her mind the bright meadow was turning into a nightmare of darkness and stink and pressure and gibbering mindless things. She was terrified that at any moment she might see a change- And then she did see one. Something unmistakable. A few feet away from her, above the grass, was a sort of mist of light. It hadn't been there a moment ago. But now it seemed to get brighter as she watched, and to stretch from very far away. And there was a shape in it, coming toward her.

Study On Financial Statements And Ratios Of Banks - Free Essay Example

Sample details Pages: 20 Words: 6061 Downloads: 3 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? 4.0 Introduction The data analysis chapter has been divided into two parts. In the first part, I have tried to do some sort of quantitative analysis. The first part is based on the financial statements and key ratios of both the chosen banks. Don’t waste time! Our writers will create an original "Study On Financial Statements And Ratios Of Banks" essay for you Create order Again it was broken down into sub-points like the analysis of data before recession and after recession. Some key ratios were calculated, compared and analysed from the financial data of last 10 years for both the banks. The second part of this chapter is a mixture of literature review data analysis and some points were written with reference to the analysis done in first part in my own words. 4.1 Analysis of Data Derived from Financial Statements and Ratios 4.1.1 Bank Status before Recession After Recession To be able to answer our research questions it is imperative to look at the two companies data from financial statements, this will reveal the risks inherent in each banks operation. The analysis utilizes data from the financial statements of the banks under review from year 2005 to 2010 just before recession started. While the two banks have similarities in risk management RBS use pounds while HSBC use dollars as the basis currency in the books of accounts, while this may hinder the analysis especially quantitative analysis the general data increase and decrease is an important aspect sufficient for this study. 4.2 Financial Position of RBS 4.2.1 Financial Position of RBS before recession (2004-2005, 2005-2006, 2006-2007) The Royal Bank of Scotland turnover had been on steady increase, in the financial year ending December 2007 the turnover was ÂÂ £30,366 million; in 2005 the turnover was ÂÂ £25902 million while in the year ending 2006 turnover increased to ÂÂ £28002 million. In 2005 operating profits were ÂÂ £7936 million while in 2006 operating profits increased marginally to ÂÂ £9186 and in 2007 ÂÂ £9807 million. Profits before tax has been on steady increase from ÂÂ £7936million in 2005 to ÂÂ £9186 and ÂÂ £9832 million in 2006 and 2007 million respectively. 4.2.2 Financial Position of RBS After Recession (2007-2008, 2009-2010) The turnover for year 2008 was ÂÂ £25868 Million and finally the turnover for the year ending December 2009 was ÂÂ £38690 million. In but in 2008 and 2009 losses of ÂÂ £40836 and ÂÂ £2595 were recorded respectively, this was after recession started. The full details for the full year 2010 results have not been announced but the first half results profits had increased by 44% to ÂÂ £3950 million. Table 1 Royal Bank of Scotland Profit and loss Extracts Year Ended 31 Dec 2010 2009 2008 2007 2006 2005 ÂÂ £millions ÂÂ £ ÂÂ £ ÂÂ £ ÂÂ £ ÂÂ £ ÂÂ £ Turnover 38690.0 25868.0 30366.0 28002.0 25902.0 Operating Profit Q3 726 -2595 -40836.0 9807 9186 7936 Profits before tax -2595 -40836.0 9832.0 9186.0 7936.0 Source; RBS website 4.3 Financial Positions of HSBC 4.3.1 Financial Positions of HSBC before recession On the other hand the turnovers for HSBC on the financial years under review were as follows; year 2007 the turnover was $ 87601 million, $ 61704 million in 2005 and $70070 million in 2006 in terms of operating profits, the group managed $20966.0m, $21240.0m and $22709.0m in years 2005, 2006 and 2007 respectively. Profits before tax were $20966m, $22086m, and $24212m in years 2005, 2006, and 2007. 4.3.2 Financial Positions of HSBC After recession The group managed a turnover of $ 88571 million and $ 78631 million in 2008 and 2009 accounting periods respectively. HSBC recorded $ 22709 million profit in 2007; however the profits declined substantially to $7646 million in 2008 and $ 5298 in 2009 again profits were affected as recessionary fears started. In third quarter of 2010 the profits increased marginally. Table 2 HSBC Profit and Loss Extracts Year Ended 31 Dec 2010 2009 2008 2007 2006 2005 $millions $ $ $ $ $ $ Turnover 78631 88571 87601 70070 61704 Operating Profit 5298 7646 22709 21240 20966 Profit before tax 7079 7079 9307 24212 20086 20966 Source: HSBC website 4.4 Tabular, Graphical representation, interpretation and analysis of key ratios of HSBC RBS for last 10 years In the next few pages, I have tried to present the data in tables, graphs and charts. Some of the data was presented and calculated for last 10 years and some for the last 5-6 years. Some of the key ratios as given below were calculated, analysed and compared for both the banks. Net Interest Margin Return on equity Capital adequacy Liquidity ratio Non-performing assets ratio Loans Turnover ratio Loans to Assets ratio Gross Yield on Earning Assets (GYEA) Table 3 HSBC Ratio Analysis in percentage Year Ending 31 Dec 2010 up to June 2009 2008 2007 2006 2005 2004 2003 2001 Net Interest Margin 3.25 3.09 3.05 2.00 3.4 2.04 2.60 2.54 2.24 ROE 11.1 12.3 11.21 9.62 11.60 12.25 11.2 15.6 13.21 Capital Adequacy 11.50 11.60 11.75 10.89 10.97 11.01 11.12 11.31 11.63 Liquidity ratio 2.20 2.50 3.62 4.21 5.31 6.54 1.23 1.11 2.15 Nonperforming assets ratio 2.17 2.27 2.12 2.14 2.16 2.14 2.11 2.01 2.00 Loans Turnover ratio 66.2 55.2 25.10 29.2 54.0 59.1 67.12 74.21 76.45 Loans to Assets ratio 0.60 0.40 0.22 0.15 0.12 0.113 0.21 0.28 0.32 GYEA 5.21 4.60 4.49 4.36 4.24 4.42 4.68 4.29 3.26 Source: Data glanced from HSBC website and did personal analysis. Figure 4 HSBC ratio analyses (Note: all the figures are in percentage) Table 4 RBS Ratio analysis as a percentage Year Ending 31 Dec 2010 up to June 2009 2008 2007 2006 2005 2004 2003 2001 Net Interest Margin 1.97 1.76 1.70 1.75 1.83 1.91 2.01 2.03 1.92 ROE 12 11.5 11.4 9 9.6 9.12 14 11.2 10 Capital Adequacy 12.51 11.44 11.95 12.98 11.72 11.10 12.21 13.11 13.23 Liquidity Ratio 3.21 2.42 3.21 5.22 3.23 3.29 2.23 2.11 3.15 Nonperforming Assets Ratio 11.1 14.1 16.1 12.15 12.11 12.10 11.11 11.01 10.10 Loans Turnover Ratio 66.9 45.25 44.15 39.2 44.0 49.12 57.21 63.32 66.00 Loans to Assets Ratio 1.56 1.45 1.35 1.40 1.19 0.20 0.89 0.46 0.56 GYEA 3.33 4.6 2.12 4.06 4.12 3.28 2.86 2.92 2.45 Source: Data glanced from RBS website and did personal analysis Fig. Comparison of the two banks PL data Generally over the years the turnover of the two banks has been increasing but the increase in HSBC turnover has been moderate while that of RBS has been steep. HSBC has managed to remain profitable for the period of analysis showing that the company has been able to mitigate the risks well as compared to RBS. RBS made substantial operating losses amounting to 2595 million in 2009 and had to be supported by the government as a result of subprime mortgage crisis. The data show that HSBC has adopted prudent management even though profits declined, the ratios show the group has maintained strong capital base Findings During the two years before year 2009 and after the two banks were adversely affected by economic condition. The profit and loss analysis from the two banks show that HSBC has been able to tackle liquidity risks well as it has been able to maintain profitability through out even during the recession on the other hand RBS was affected and made losses in 2007, 2008 and 2009 but the half year available indicate the bank has returned to profitability after the government support. The profitability before tax is shown in the figure below. Figure 5 Source: Data glanced from RBS and HSBC websites and did personal analysis Note: HSBS figures are in million dollars while figures for RBS are in million pounds. 4.5 Literature Review Data Analysis This dissertation presents the underlying strategies and approaches applied by the top UK banks in learning the differences between HSBC and Royal Bank of Scotland. The strategies and approaches are observed before and after the recession period when assets and stocks were reducing in value putting the banks in worst case financial scenario. To compare their financial, business and operational risks concern will create a bigger picture. The aim is to determine which between the two banks has a better and effective approach and strategy in the risk-reduction initiatives (Drew Michael, et al., 1996) Banks in United Kingdom have relied upon a proven system of strong liquidity risk management. This has been in existence for over three years now and since the system was started banks have made it a priority to update their systems of risk management to keep abreast with the changing demands of the society and technological innovations associated with risk management. Financial stabi lity is easily achieved by following less complicated process and that is to stick to the rules and created in less difficult way that whenever you try to explain it to a customer or client. The grasp of the policy will then be easily absorbed (Issing, 2004). The liquidity risk management of most United Kingdom has been seen to be strong and responsive whenever banks experience risks. Banks have to ensure that they exercise prudent risk management to be able to provide customer satisfaction, but some of the banks are less committed to the task to minimize their exposure to risks. It can be costly to the bank and expose the bank to court cases, licence cancellation by the supervisory authorities and customers withdrawing from the bank. The only way to do this is to create a reliable system of liquidity risk management (Issing, 2004). Risk management actions count the most in the future and especially in setting the reputation of the banks. Extra effort is required in creating p olicies that will withstand the effect of any risks. Being able to communicate the recent risk situation among the team members will help a lot in the resolution and in effectively carrying out the regulations which they intended to implement for the banks organization. A manifestation of a high level of activity would spell a lot of difference compared to those who lag behind due to poor management risk planning (Kahf Homud, 1998). An effective liquidity risk management is able to make anticipations on the occurrence of future risks. There is also a type of liquidity risk management that can only provide satisfactory level of service or performance, however, it possess certain weakness though very insignificant, it may still deliver anticipated results like those managements that are strong since it only manifest very minor signs ineffectiveness (Bank of England 2007). HSBS and the Royal Bank of Scotland are not just the top banks in United Kingdom they are the two banks tha t show an impressive liquidity risk management. This record could be very much proven by the profits earned annually and the impression they make among their customers is excellent and they never settle for anything less. The two banks have applied similar systems although HSBC is the bank that shows the most impressive and effective strategy/ approach against a liquidity risk. They always make sure to protect not only their money but also protect the welfare of their customers and intend to move with them and manage their finances by avoiding incompetence in dealing with liquidity risks. HSBS guides their customer from the time they enter the institution until the time they become part of a much growing and impressive banking industry (Bank of England 2007). In the last two years HSBC only experienced short term recession only, they had prepared for the recession, through management and the fact that they had experienced a crisis before and had rectified it by creating a frame w ork that worked well for the bank. Prudent risk management at HSBC can be analysed by looking at the profits that the bank has earned recently where the bank doubled its half-year profits by posting ÂÂ £7 billion as at August 2010, this is at a time when smaller banks were feeling the effects of recession. Analysts have seen the capabilities of the bank base from their well-managed systems and strategies. They had already expected such things to happen so there is nothing surprising about that (Goodway, 2007). The banks have taken all necessary precautions and the management maintains optimism that in case of risks they will find a way out. The way the two banks react to problems is always quick thus they are able to find real time solutions. This strategy is a good way of keeping loyal customers. The primary goal is to offer consistency in performance whether the nature of the transaction differs or not, this is exemplified by the HSBC spirit of being consistent and reliabl e in every possible way. One of the ways that the banks have avoided the risks is to anticipate the risks thus making in advance plans. HSBC has made a point to anticipate risks and make plans to mitigate or avoid the risks completely, this is seen in the banks preparation of the recession in the last two years the bank made adequate plans and adopted prudent lending, adopted technology and minimized operations expenses, while other bank were unprepared and had to be rescued by the government. HSBC operates inn flexible economies, this has been explained by looking at the diversity of the markets it operates, and this gave the bank diversity as not all markets experienced recession. HSBC reaction to risks is a testimony to its objective to effectively handle risks, one such objective identified in the study was is to create liquidity through making an arrangement to leaseback or sell assets whenever loans are defaulted (Goodway, 2007) On the other hand, the Royal Bank of Sc otland has similar strategies, before recession the management had drawn a plan on risk management, this is exemplified by the fact that they didnt change their banking rates during this period. Although they needed to take precautions on the insurance, once this has been resolved they could go back to the most important part which is keeping the business even more profitable (Aldrick, 2008). Royal Bank of Scotland (2011) strategy has been to invest heavily in being relevant to the needs of the customer; the bank has also created a buffer to protect the bank in times of recession. In 2007 the bank lost 3% in book value as it experienced subprime related mortgage crisis, but the bank made an effort in ensuring that the customers needs were addressed as soon as possible and assured clients that their accounts with the bank were safe. The Royal Bank of Scotland has not seen changes in sub-prime related write downs, the bank has remained stable. During the recession the bank st ill managed ÂÂ £ 1.1 billion in half year profits, though the bank was affected by recession as it could not prevent the effects of recession on their profits and capital enhancements. When making a comparison between the two banks, they differ on how they carry out their risk strategies but have similar characteristics. 4.5.1 Implications of recession on house mortgage and corresponding subprime losses HSBC has always tried to offer options that are sustaining and a relief to those who are about to lose their home due to the effect of recession, some of the options are leaseback and sales. In terms risk management HSBC has adopted a different approach when it comes to helping customers experiencing cash flow problems in paying mortgage. The bank identifies the need to assess the urgency to save the customers financial status or his house under mortgage (Goodway, 2007); the bank allows customers to modify their loan allowing customers to pay the loan at an adjusted future time. This reduces the risk to both the customer and the bank. On the other hand Royal Bank of Scotland reduce risks by allowing variable or fixed mortgage rate, and has applied the straightforward approach where a customer mortgage application is approved decisively, this ensures the payments are as flexible as possible. The bank has also limited the bank charges it can attach to an account thus creating cust omer satisfaction. 4.5.2 Bank Strategies and Policies Applied The effectiveness of the banks strategy and approach can be analysed by looking at how well the banks management performed their roles. As risks are recognized the management needs to assess the risks and careful interpretation of the consequences. If the management do not carefully assess the crisis, then the risk might probably worsen until it can no longer be helped (RBS, 2011). The loan modification adopted by HSBC may not work as it is difficult to find a common ground. It may also not be possible to carry out assessment and evaluation. The Royal Bank of Scotland has minimized its risk exposure by allowing the straightforward method, thus the bank is able to assess the qualification of each customer. 4.5.3 Criteria for house mortgage loan allocation Both banks utile interest options, period of payment, and a flexible payment options. However, the criteria need to be assessed on individual application basis while at the same time maintaining objectivity and should not be applied to all. This criterion has to be flexible in terms of meeting the customer needs such as unforeseen circumstances. The current criteria risk the banks profit if it is contravened, it should allow the customers meet their monthly loan repayment deadlines. It can be very well taken into account that the system used by these two is similar to those applied by the rest of the banks in United Kingdom (Effros, 1998). However, the researcher intends to discuss the reliability of the system utilized by the two chosen banks as they encounter inevitable risks in global economic environment. A study of the HSBC system shows how well they have managed risks that have placed other banks in receivership. The study helps to understand the important issues needs to be tackled by a bank to manage risks successfully. The two banks have had good financial risk management, in terms managing the credit and market risks by having a proper risk assessment. These two risks take place when an improper assessment is made (Newman, 2006). Strong and reliable management organization has been used as a tool to help the banks strengthen and arrive to a risk free system. In case of system failures a dependable measure has been created that would minimize financial implications. The banks initiative is to push the participation of the depositors in the program and to treat them as among the driving force which affects the system. The methods are extensively researched and adapted among institutions which mean that it has been carefully checked (Banks, 2003). Extensive study on the feasibility of the issue in addressing the effectiveness of system implemented in the banking institution. In the previous discussion, regarding the imposition of law aff ecting banking system, the European banks are known to be sanctioned under a strict regulation whereby giving them less control over their own management. The variability in the solution technique being employed by either HSBC or the Royal Bank of Scotland cannot simply be the solution to this problem. It is the way they approach the problem with a system proven by time. The HSBC and the Royal Bank of Scotland have several financial planning portfolios in helping the customers reach their goals. The two banks have manifested expertise in providing the most expert advice on planning and investing. They consider it as their responsibility to provide their customer with the best advice available and have to be right and fitting to their customers needs. They exert and commit themselves as they go the extra mile of keeping their customers for a lifetime by answering and addressing quickly their customers growing demands and they have never failed to do so (Newman, 2006). The banks will not wait in vain but makes sure that they get to customers and provides them with a personalized service that cannot be found from other bank institutions creating confidence and trust with the customers. No wonder these two banks were voted top United Kingdom banks (Duttweiler, 2009). The assessment of the policy utilized by these two banks operates as a measure that monitors whether a prescribed risk guideline has been complied with and then makes a report accordingly (Crouhy, 2006). The design of the policy has been able to achieve the appropriate strategy, though require the framework and the funding capacity be adequately met by the funding institution. The design as a result, gives the customer the assurance and the security as they are given the key role and part in developing the system. The United Banking system has also been extensively analysed in this dissertation. Risks such as the financial and operational risks has been analysed by relating them to the str ategies being employed by each bank, thus, an empirical method has been applied by exploring details about each bank. Various important factors about a banking institutions risk management system have been looked into as well. Looking into the advantages of a well-organized risk management banking system will help minimize damages brought by liquidity risks. A well-managed and well carried management plan will save the bank from recovering from years, after suffering from significant financial risks. Chapter 6 Conclusions and Recommendations 6.1 Conclusions While the data analysed show similarities in the way the two banks manage liquidity risks HSBC has prudently managed the risks better as compared to RBS. The profits before tax for the two banks indicate that RBS made losses for the last two years while HSBC has maintained profitability despite recession. Fair amount of loans have been advanced that may not pose great risk to both banks, the loan to asset rate is low for both banks and this reduces unnecessary exposure to bad debts. The ratios indicate the banks have maintained adequate capital bases that can with stand systemic risks. HSBC has managed to maintain low operating margins leveraging on technology to deliver products thus avoiding high staff expenses, on the other hand RSB government ownership reduces the risk exposure and thus the bank has been able to obtain loans from the bank after the recent recession, the operating margins are negative for the last two years indicating the bank has not been able to achieve optimal operations. After a sustained increase in the operating profits of RBS before the recession profits declined from 9807 million pounds in 2007 to losses of 2595 million pounds, this emanated from the exposure of the bank to mortgage related risks therefore to ensure the bank is protected from the risk the bank should carry out evaluation on the ability of the customers to meet the monthly mortgage requirements. The effectiveness of the risks management policies of the banks under study has been evaluated, to be able to have a wider view about risk management bank mortgage and subsequent reaction to recession has been analysed. When the risk management policies that each of the banks under consideration is evaluated, HSBC possess the most formidable liquidity risk management policy implementation well articulated in the banks reaction to the recession. The study established that the liquidity risk management plays an important role in monitoring the flow of assets into the banks system. Banks are required to have standard set of policy to affect its benefits. However, without a reliable system from which the organization management plan is created, it is easy to say that such a management plan will not be effective. It will produce no progress at all and could costly on the part of those who implement these management strategies. Since the two banks have applied similar systems; HSBC is the bank that shows the most impressive and effective strategy/ approach against liquidity risk. They always make sure to protect not only their money also they make sure that they protect the welfare of their customers. The dissertation focus on the UK banking system was ideal as the perfect niche where to study liquidity risk because the banks have a wide access to almost all parts of the world and. The banks are universal and possess that impressive banking track record. HSBC and the Royal Banks of Scotland are equally as competent and committed to a strong liquidity risk management (Casu Molyneux, 2001). However, this study was limited to the top two banks it is recommended that in order to understand liquidity risk a study should be conducted not only on those two banks but also on those ranked at the bottom. This way it is possible to understand the liquidity risk in the banking industry and serve as a basis of reference by other researchers or particular areas of concern that may be a source of risk for banks. It should also be necessary that a case study be conducted on a particular scenario focusing only on one risk management area so as to have a clearer view. The banking system is explained along with some points on how important it is to build a strong impression with international institutions by securing a reliable system within the bank by good risk management policies that serve as its foundation. A discussion on the importance of liquidity risk management policy has been explored using policies as the gui delines and indicators that help determine the confidence level in each banking system. If weak policy system is in place, it gives doubt as to the effectiveness of the risk management approach. Royal Bank of England has been analysed and the responsibility it has on the control of rates. The bank has been used as the point of reference since it has flexibility in decision making as well as its crucial to the good functioning or detriment of the whole banking institution in United Kingdom. The HSBC and the Royal Bank of Scotland has impressive financial planning portfolios that are geared towards helping the customers reach their goals. They make it their utmost responsibility to provide their customer with the best options that are available and have committed to meet the customers need. The two banks provide the most expert advice on planning and investing. An analysis of HSBC system shows that they have managed risks well, including risks that have placed other banks in receivership. The Royal Bank of Scotland equally possesses reliable strategy where all the decisions regarding risks have to be decided after careful analysis and Proper management of credit and market risks is essential in eliminating financial risks. The study established that these two risks occur when an improper assessment is made. The commitment of the management of an organization is an important element needed to help reduce the risk on possibility of a bank to collapse. It is a guiding force that a responsible banking institution must adhere to, so as to avoid the consequences of financial failure because of mismanagement. Proper risk management could be a simple way of solving liquidity risk problem which management believe is difficult to tackle. In order to protect their earnings the banks have to institute proper risk management policies as it is not always predictable where risks will emerge. The two banks under study have implemented some of the most desired risk m anagement policies. Many banks were severely affected by the recession but HSBC and RBS still returned maximum profits despite the operating environment existing in 2010 the financial year under review. Customers are concerned with the risk management practises of their banks this is because it also determines the availability of credit and all necessary bank products that they need. 6.2 Recommendations The banks need to ensure that the risk exposure on their portfolios is minimized or eliminated completely. While the recession risks were inevitable the need to anticipate liquidity risks are imperative. HSBC had gone through a crisis however the management had foresight and planned well for the recession on the other hand RBS had to rely on government bail out to minimize the risks the mortgage portfolio had. The need to pursue vigorous risk management policies is important than before, while management decisions influence the direction of the banks, careful planning and consulting is essential. A deep analysis of the causes of the losses registered in the last two years would be a good starting point to be able to collect the mistakes. Management will be valuable in this, the ability of the management to run smoothly the banks and predict future risk will determine the bank that emerges from recession stronger. From the data analyzed while turnover for the banks increased t he operating profits were affected by the recession. Like HSBC did RBS need to leverage on technology to reduce operating losses. 6.2.1 Recommendations on Managing liquidity through Organizational structure and Governance It is imperative that the two banks define the liquidity risks exhaustively this will ensure that the risks the banks are exposed to are identified and placed in respective risk category, then the risks are communicated to the respective groups to that they can identify, understand and evaluate liquidity risks that the banks face including new lines of business, products, acquisitions, alliances or any initiative that the banks intend to participate. A clear understanding of the various risks is essential particularly distinguishing Market liquidity and funding liquidity risks. Risks inherent in funding that the banks should focus on include; Structural liquidity risks spanning more than one year and cash capital risks of the banks. Thinking long term is beneficial to the financial health of the banks, the ability to communicate this is imperative depending on the nature of risks the management should be able to know what and how they are going to communicate. Information dis closure will invariably contribute to the risk or minimize or eliminate the risks completely therefore a clear policy on which information to disclose is essential. The need for transparency in dealings and communication is central to creating and strengthening trust as compared to past failure to disclose liquidity risks by banks. In many of HSBC annual reports the need to disclose risks has taken central role according to year 2007 annual reports the bank had identified the risks it faced and critical analysis was on liquidity risk. While there is no universally agreed level of disclosure of risks, various legislations have been put limit to the minimum amount of disclosure that can be done. As a consequence of good economic gains in the last four to five months banks have increase capital ratios and therefore HSBC and RBC needs to significantly increase capital ratios while at the same time to reduce the leverage levels. Recession that emanated from leverage in mortga ge has taught finance managers the importance of deleveraging. It is important to run efficient and less complex and smaller banks and then focus on the core aspects of rendering services to customers. A thorough understanding of their business and possible future risks, the two banks can create trust and show customers that they are run prudently. This is the only way they can rebuild the financial system that is damaged from banks own imprudence. The return to profitability has been quick as most banks were supported by governments and the recession was particularly driven by the mortgage sector, in the years to come HSBC and RBC need to pursue policies that minimize risks by qualifying case by case in mortgage applications and deleveraging, while this may not be of advantage right now it will promote independence of banks. Chapter 6- Discussion/ Reflection 6.1 Reflective Report The dissertation has covered most part that the researcher has intended to arrive at and has expected to obtain. The output was gathered by patiently going through the evaluation process of each aspect behind the liquidity risk management that exist between two banks. Other underlying factors are also essential in the dissertation. It is important not to leave those with less attention because what makes up the two banks are the foundation concepts built buy the bigger institutions the Bank of England in particular. The ideas gathered about the Bank of England could give you a perfect idea why bank in England are being regulated that way. The Banks is sole responsible for all of that but the system implemented by them is something that United Kingdom Banks should be grateful about because the system that they are following has made it easier for them to exists and further improve as a bank institution. This log book is important as it expresses the researchers experience from doing the dissertation. Future researchers of the same study may refer to this log book and see the progress and experiences made by the researcher. It could also a reference for the advantages and disadvantages encounter along the flow of the study. The process was rather simple however it was very time consuming due to its nature. Simple comparison will not do, you must be able to correlate the subject with the controlling elements such at the kinds of management risk provided. Previous studies have been a great help in this project. 6.2 Significance of writing the dissertation Writing the dissertation has provided me with an awareness and general out on the risks that banks are facing. It has also taken a challenge on my part to learn more about the internal management and gives me the idea why this particular bank has been successful in providing services to their customer. It has been quite an interesting experience for me. In a general sense, the dissertation has several impacts to the following: Business sector- most business companies had relied upon the success of their banks. They had depended on the success of those institutions because they too will get affected once the liquidity risk management problems will not be properly addressed. Customer/depositors- They are generally the person that makes up the whole system. They are like the basic unit in the institution because without those assets will not get into their system and it will very much affect their banks profits if customers keep withdrawing from the bank due to their poor custom er service performance. 6.3 Process to Write Dissertation The dissertation process is written in a wide array of perspective where the researcher has to dig in a few points from which may or may not be necessary for the paper but I believe that it is necessary in order to be able to express the proper points that needs to be addressed in the dissertation. Nothing has to be left out so that each point is met and the strategy being exerted will not go to waste. I believe that the routine that needs to be exercise in order to come up with a dissertation on finance is constant analysis and focus on the chosen topic. I did not have a hard time though in comparing the banks but I faced difficulty in dealing with the Literature review part. Some are particularly related to one another however, there are issues that need to be deleted as they were irrelevant perhaps on a different context. An outline The outline of this dissertation will serve as the framework from which the researcher must follow on. It is important in the alignment process of the dissertation. There are steps that have to be constantly followed and these steps will create a body to the dissertation. However, the step that I am talking about is not procedural but rather a mind frame or set that create the body of the paper and will not look or be read in an irregularly set platform. Organization The dissertation is created in an organized framework aimed at getting well defined results. Chapters are arranged well in sub headings giving the topic a simpler, defined and narrowed down look. The flow is much easier to follow since each chapter are outlined in a pyramid structure starting from a concept down to a much deeper principle. Time-Table This is the most important part of the process that will very much affect the whole set-up if not followed accordingly. I have to make that every night I am able to produce a minimum of 1,500 words of progress. This way I will not be having a hard time catching up in the future in case, the deadline is fast approaching. I make it as an initiative to always work on something every day in order that I will have lesser work to do in the coming days. Iterative Solution The initial thing that I did was create an outline. It served as the backbone of my dissertation. It will also serve as your guide. With it you can never lose direction especially if you need to stop working and when you need to get back working you have already lost focus in the dissertation. The outline shall serve as your reference life to which you could follow with and keep up with your lost time. 6.4 My Learning outcomes The core of the dissertation is the stored knowledge which I need to incorporate with my readings as I start working on the dissertation. The reading are essential in order that you are able to connect and check that what you have previously learned still applies or if you need to keep abreast with the updates or the amendments created by institutions and the like. 6.4.1 Plan to write on a regular basis and to stick with the plan made: I have also created a log where I regularly develop a manner to assess my level of data organization. This will monitor my research work behaviour if i sometimes i lagged too much and some works have not been accomplished throughout the day. The log book shall be a guide from which I can make up for the unaccomplished works and will also determine how much work I need to exert for that particular chapter. 6.4.2 Making a time plan and sticking to it Sticking to the time table is required because it will allow you to be more organized and to adhere to the required task for the day. The given task is appropriately assigned in a day together with their corresponding number of words that needs to be accomplished. Conclusion The dissertation is attained by a comprehensive study that requires relevant information that insures that the study will present a reliable source of data. Upon obtaining it, it must be organized in a less complex manner. And when a difficult part arrives, it is necessary that adequate solutions are reached because once the problems are not resolve in instant, future efforts will also be affected by the inaction done in the previous challenges.