MSc International Banking and Finance

MSc International Banking and Finance The financial year 2008-2009 has been very significance in the history of banking industry. The industry faced the biggest ever crises since the great depression. The whole global banking system was challenged for various reasons.   The performance of public sector as well as private sector banks went drastically down. The crisis has not left any country without panic but the impact was subjective.   The developed countries like US and UK suffered more than the developing countries. Many literatures have been written and many case studies took place to analyse the impact of recession. Its has been an important aspect to analyse the performance of banking sector in various continents. In this research I have planned to compare the impact of recession on the Indias biggest private sector bank ICICI which would reflect on the level of impact it has went through. The research would be a comparative performance analysis of ICICI bank and its subsidiaries in the UK, Canada and Russia.à ‚   I believe the Bank is one of the best examples to analyse the performance to find the impact of global financial crises as there are different of opinion in regards to the impact of financial crises on Indian Banking sector.  Ã‚   2.0Title of the research:   Ã‚  Ã‚  Ã‚   The analysing the performance of Bank in financial crises- The case of ICICI Bank 3.0 Rationale for Study The focus of the study is to carry out an extensive analysis of the performance of ICICI bank in financial crisis of 2008-2009 To achieve this aim, the study will examine: The main determinants of ICICI banks efficiency and performance The effect of financial crisis on cost, revenue, profit efficiency and stock return performance of    ICICI banks. The differences in performance of ICICI bank in India, US and in the UK. The effect of banks capital on a its ability to survive in the period of crises, The result and find out the similarities and differences of impact of financial crisis. 3.0 Literature Review: The recent financial crisis has left clear evidence of global downturn. Not only developing but also advance countries have suffered in a very bad way. In last year and half market has fallen by 35-40%. According to the IMF data the impact of the recession is comparatively less in the Asian countries. But banks that are involved in the global financial market in subprime mortgages were exposed to the financial downturn. As per IMF records large US banks losses more than a trillion dollars in bad loans and expected to lose more ahead. This time financially US were hit harder than Europe and Asia or African continent. The World Bank survey of 425 Asian firms and 78 banks in 14 developing countries shows that the global financial crisis has constrained trade finance for exporters and importers in developing countries. But the impact varied by the firm size, activity, and countries integration into the global economy. The analysis of performance in the period of crisis also differs from institutions to institutions and country wise. In general, the performance of banks and non banking financial institutions has been measured by various methods but most of the literatures used combination of different financial ratios.   There are number of studies analysing the efficiency and the performance of financial institutions. However, there have been numerous studies analyzed the efficiency of financial institutions. Among these Dennis Olsonand Taisier A. Zoubi (2008) uses 26 financial ratios to distinguish between conventional and Islamic banks in the Gulf Cooperation Council (GCC) region. In the comparison of Islamic Vs. Conventional Banks Dr. Taisier A. Zoubi has mention 16 financial Characteristics of Banking Industry. Dimitri vitas (Nov 1991) has raise the point about the use and misuse of financial ratios. Claudia Girardone. (Feb 2000) has also analysed the Determinants of Bank Efficiency in the case of Italian banks. This paper would use the various financial ratios which describe banks liquidity, profitability, asset quality and efficiency. 3.1 The Financial Crisis and Indian banking industry As its obvious, the global financial crisis is unlikely to spare Indias corporate sector.The perceived impact as reflected in financial markets indicators is acute: the Sensex lost over 50 percent and the rupee depreciated 23 percent in 2008 (IMF Country Report No. 09/186) In 2007 Indias GDP dropped by 4% and expected to remain between 5.5 and 6.5 in 2010 Limited exposure to the sub-prime mortgage market helped Indian banking sector to maintain the stability.   Indias refurbished financial systems and supervision system supported this performance. The well managed financial reform rapid growth and the diversification has given the annual credit growth of above 20% and reduce non performing asset to 2%. In 2008-09 with credit growth of 17.3% Indian banking sector reflected sound and profitable attitude, but all credit mainly goes to the large public sector banks with stable deposit growth. The banking sector in India has less impact of crisis but the banks like ICICI which has its subsidiaries in US and Europe has an impact which may be comparatively less or more. 3.2 ICICI Bank ICICI Bank is Indias second-largest bank with total assets of Rs. 3,674.19 billion (US$ 77 billion) at June 30, 2009 and profit after tax Rs. 8.78 billion for the quarter ended June 30, 2009(ICICIbank.com). The ICICI Bank has its presence in 18 countries worldwide. The Bank offers various banking and financial products. The Bank currently has its owned subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany. The shares of ICICI are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). As a largest private bank in India ICICI has its business in the international m arket and first Indian company to be listed on the New York stock exchange. ICICI was not the exception to have an impact of recent financial crisis, as like most of the international banks ICICI was also connected to the US subprime mortgages. ICICI Bank lost its share value more than 50% during the period of crisis. Till August 2008 ICICI Bank was the most valuable bank with a market capitalisation above all Indian private and public sector banks but it has become to become the victim of global financial crisis like other international banks. With asset of $9bn in UK and $5bn in Canada ICICI has the exposure of $12bn in overseas loan The US subsidiary of ICICI also has a debt of $76m in Lehman Brothersdebt And ICICI UK has $3.5 billion investment in various instruments of which around 18% are in US papers. But the same time the capital adequacy ratio at ICICI is 13.4% which is higher than the mandatory percentage. (IBN Analysis) 4.0 Aims Objectives The aim of the study is to analyze the impact of the 2008-2009 Financial Crisis on the performance of ICICI banks and its subsidiaries in the UK, Canada and Russia. In order to achieve the above aim, the study has four main objectives: Whether the Indian banking sector was exposed to contagion effects of the current financial crisis To compare the impact of the Financial Crisis on ICICI Bank India, the UK, Canada and Russia. How were the pre-crisis performance and profitability of ICICI banks in India, the UK, Canada and Russia? During the pre-crisis period, how was the relationship between bank efficiency and financial indicators at ICICI Bank? 5.0 Proposed Methodology and Critical Application There are various aspect of performance analysis which has been used to review or to compare the performance of banks and banking sector. In the performance analysis of Italian banks Claudia Girardone (2000) has mention various determinants of banks performance, profitability, and efficiency. Many studies focus of different characteristics of banks performance like liquidity, profitability, returns on asset and so on. In this study to examine the performance of ICICI bank India and the UK, Canada and Russia the simple accounting ratios would be used and to check further on the difference in performance in different countries the regression analysis will be used. The test will help to figure out the ICICI banks exposure and the effects of the financial crisis on its operations in given countries. The paper discusses the correlation of efficiency scores with the financial indicators such as asset quality, capital ratios, operational and liquidity ratios. Paper uses the set of sixteen financial ratios which are the suggested financial characteristics of banking industry (Dr. Taisier A. Zoubi ) to analyse the performance of ICICI Bank and further examines the difference of performance at ICICI bank in India , UK , Canada and Russia. 5.1 Proposed Data Collection For this research secondary data would be suitable thus, I intend to collect and analyse secondary data for the proposed study. The secondary data will be collected in the form of a literature review and provide details about the performance analysis and recent financial crisis. The financial statements and annual reports are required for the sample period of the research to examine and to run the proposed analysis for ICICI bank India, US and UK, The data is in the original currency (Rupee) of the parent company ICICI Bank India Pvt. Ltd., but provides a choice to covert the data to any other currency, including the USD and GBP. This paper uses the INR-based reports in the selected sample. 5.2 Access to the Data This study evaluates the cross-country level data compiled from the financial statements of ICICI banks in India US and UK over the period 2004 2009. The primary source for data used in this research is the banks balance sheets and income statements published on the Bank website. The choice of this sample period covers the longest available history of ICICI banks UK, 5.3 Justification of Methods I believe that secondary data is suitable for this research, which can be internal or external to the ICICI Bank and may be accessed through the internet or recorded or published information of bank. As there are various sources to collect secondary data, likes books and periodicals world bank and IMF publications of economic indicators, National census data, statistical abstracts, Central banks data bases, the media, annual reports of the bank, case studies and other archival records. The advantage of using secondary data sources is savings in time and cost of acquiring information and many times its comparatively easy to access. 6.0 Limitations Delimitations of the study The proposed study is limited by time constraints- the completion time limit is three months. The ratios analysis has major implication for assessing bank performance in developing countries but in this case the data is from both developing and developed countries UK and the UK. Given the range of services and the cost difference in India US and UK, Indias cost -assets and cost income ratios should be smaller than the UK as an developed country. This study does not consider the inflation effect, and the risk factor in the respected country, 7.0 Justification 7.1 Academic Benefits The study will be of interest to academics that have an interest in financial services performance review. The results will add to, and update the academic literature that presently exists on performance analysis. The study will also provide a useful insight into the use of financial performance indicators in banks. 7.2 Practical Applications The study will help to understand and measure the impact of crisis on ICICI bank. The result will show the difference of performance of ICICI bank in the given countries which would be of interest to the managers of financial services as it will provide insight into how the performance of the bank could move in the period of financial crisis. The results of the study will help to understand the difference of impact of global financial crisis in cross countries. It will also help to find the effect of banks capital on a banks ability to survive in the financial crisis, and its competitive position. 8.0 Proposed Structure The format of the dissertation will be as follows: Title Page; Declaration; Abstract; Acknowledgements; Contents Page; List of Tables and Figures (including word count); Introduction; Literature Review; Methodology; Results and Discussion; Conclusions and Recommendations; Evaluation of Study and Scope for Further Research; Bibliography 9.0 References ICICI Bank. (2004-09). Annual repots. Available: http://www.icicibank.com/pfsuser/aboutus/resultsann/webcast_09.htm. Last accessed Nov 11,2009. MF Global financial stability report. (Oct 2009). World economic and financial survey. Available: http://www.imf.org/External/Pubs/FT/GFSR/2009/02/pdf/text.pdf. Last accessed Nov 20,2009. world bank. (Aug 2009). India Banking Sector Support Loan Program, Available: http://go.worldbank.org/SRP7OBC9Q0. Last accessed Nov 20,2009 Overseas development institute-Conference Note. (Dec 2008). Measuring Commercial Bank Efficiency Use Effects of the Global Financial Crisis on Developing Countries and Emerging Markets. Available: http://www.odi.org.uk/resources/odi-publications. Last accessed Nov 11,2009. IMF. (Jun 2009). IMF Country Report No. 09/186. Available: https://www.imf.org/external/pubs/ft/scr/2009/cr09186.pdf. Last accessed Nov 18, 2009. Malouche, Mariem. (Nov 2009). World Bank WPS5138. Available: http://go.worldbank.org/7ELI2JEZI0. Last accessed Nov 28, 2009. International Monetary Fund (2009) world economic and financial survey Available: http://imf.org/external/pubs. Last accessed 12/11/2009. Ketul S.. (Aug 2008). IBN Analysis. Available: http://www.gurufocus.com/news.php?id=33505. Last accessed 20/11/2009. Dennis Olson and Taisier A. Zoubi . (March 2008 ). Using accounting ratios to distinguish between Islamic and conventional banks in the GCC region.The International Journal of Accounting.. 43 (1), 45-65. Dimitri Vittas. (Nov 1991). Measuring Commercial Bank Efficiency Use and Misuse of Bank Operating Ratios.CountryE conomicsD epartment The World Bank WPS 806. WPS 806 (1), 1-54. Claudia Girardone. (Feb 2000). Analysing the Determinants of Bank Efficiency: The Case of Italian Banks.University of wales , School of Accounting , Banking and economics. 1 (1), 143-166.

Lady Macbeth Dairy

Hurry home so I can talk to you and keep you away from those stupid thoughts tempting you to failure. Besides, I was just told by a messenger from Macbeth, reporting that the king Is coming to my fortress tonight. The news nearly drove me to crazy because I had no preparation at all to welcome Dunce's entrance and to plan for the murder. I must be well planned since tonight would be the only chance for us to kill Duncan and grip the kingship. Come murderous thoughts! â€Å"Unsexes me here and fill me from† head to toe with â€Å"direst cruelty. † (Act l, scene v, line 40-41) Come to my female breast!Turn my mother's milk into poisonous acid. Make me feel no remorse and human compassion, which reverent me to succeed In persuading my lord. Cover the world with darkness so that no one could see my evil crime. This is my plan: Macbeth is going to greet the king with warm welcome in order to deceive all. Just leave all the preparations for me and our lives will be changed af ter tonight. Both fate and witchcraft seem to want you to be the King, my lord! Second Entry- On the eve of Dunce's murder Duncan has finally arrived at my fortress and he is having feast with Macbeth.The king shows great appreciation on our hostess and has no perception at all about the fact that his fife Is at risk. According to my plan, the king must be killed tonight and I will be the Queen of Scotland. Within my expectation, Macbeth kept finding excuses to give up the plan after the arrival of the king. He said â€Å"he hath honored me of late, and I have bought golden opinions from all sorts of people† (Act l, scene vii, line 32-33). Such a coward he is! He puts his ambition behind fame and loyalty. Apart from that, Macbeth also scared of the probability of failing.Along with his timidity, I reinforced his determination by showing defiance towards him. I asked him whether he was run or Just woken, and showed contempt about the fact that he says â€Å"l can't† aft er saying â€Å"l want to†. I told him that he will live as a coward and his behavior is not masculine at all. In addition, I told him the plan of how the deed is going to perform. With all the above threatening and defiance, my lord was persuaded to commit crime as a result. What a success it is! This is my plan: when Duncan is asleep, I will get his two guards drunk and make them into deep sleep.Without protection from anyone, we could blend In and murder the king, whilst all the blame will be laid on the two runner guards rearwards. Meanwhile, we wall De grieving loudly once we are tool the news of his death later. This would definitely be a flawless plan. Both my lord and I are ready and we will exert every muscle in our bodies to seize the throne tonight! Third Entry – After Dunce's murder The deed is done eventually. Luckily, the worries about the wake of guards and about the failure of Macbeth in finding the daggers did not happen. These will inevitably ruin our attempt if they happen.When Macbeth came back from the chamber with his bloody hands, an utterly sorry sight was shown n his face. When he was with two drunken guards, he told me that he could not reply â€Å"Amen† when they said â€Å"God bless us! â€Å". Moreover, he claimed that there is a voice keeps crying â€Å"sleep no more: Macbeth does murder sleep†(Act II, scene it, line 38-39). Macbeth was afraid of the punishment from God and the harass from supernatural. I told Macbeth that we must never think of our doings in this way since this will drive us mad. Once again, I convinced him by calling him a coward.I commanded him to get some water and wash the filthy blood from his hands. Also, I as really furious with him because he was so nervous after the murder that he took the two daggers out of the room. The daggers are the only evidences to show the guards are guilty! I asked him to put them pack, and he rejected me and told me â€Å"I'll go no more. I am afr aid to think what I have done†(Act II, scene it, line 53-54). He is even more timid than a child since only children are frightened by scary pictures. Frankly, if Duncan had not reminded me of my dead father and made me weak, I would have killed him myself.This would be better than now seeing my lord to lost is resolve. On the other hand, Macadam appeared soon after the deed had done. He was terrified by the kings death and rang the bell to wake up all the people and tell the treason. With I pretending horror and Macbeth showing sorrow, neither Macadam nor Lennox suspected on us. The two guards were killed by Macbeth. Our deeds will be covered since then and the murder will be blamed on the two dead guards. Now, Malcolm and Donaldson have fled away. My lord will be crowned in Scone. I am becoming the Queen of Scotland and I will take control of the country!

Popular Opinion of Under a Cruel Star

Popular Opinion of a Cruel Star Heda Margolius Kovaly was a woman who during her time in Czechoslovakia lived through many harsh periods for not only the country, but people of Jewish heritage as well. Her memoir Under a Cruel Star tells her story of hardship from 1941 to 1968. In this memoir she explains her time in Auschwitz, her escape, as well as life in Communist Czechoslovakia, concentrating more on the hardships of Czechoslovakia after World War II.While Kovaly’s memoir depicts the suffering of the Czechoslovakian people as well as the Slansky trials, which her first husband was a victim of, she never really touches upon the fact that many of the people tried, convicted, and killed were of Jewish decent. However, an article entitled â€Å"A ‘Polyphony of Voices’? Czech Popular Opinion and the Slansky Affair,† by Kevin McDermott depicts the suffering of the Czech people as well as the trials in a completely different manner, addressing the anti-Semiti c actions of the Czechoslovakian government under the rule of Joseph Stalin and the influence that followed his death.Both the memoir and the article explain the Slansky Trial, each with a different view. In Kovaly’s memoir her husband was one of the Jewish KSC leaders which were tried during that time. It is explained in text that her husband had no connection to Richard Slansky, but it left him questioning the years of devotion he made to the communist government. While the Kovaly perspective shows an outsiders view of what was happening to Slansky McDermott’s article explains why and how Slansky was brought to trial.The article explains how Slansky was a very powerful leader in the KSC party, â€Å"he was effectively second in command to Gottwald, responsible for the day-to-day running of the party machine and co-responsible for formulating policy and strategic direction†¦ He was a member of the party’s top decision-making- bodies. † Stalin sent a letter to Gottwald stating that he had â€Å"committed a number of errors† in promoting leading personnel which has caused a threat to the party and the people and advised him to remove Slansky. This could have been caused through a change in geopolitical support In the Middle East.This could infer that Stalin’s increasing anti-Semitic tendencies impacted Czechoslovakia. Other than the fact that both Kovaly and Slansky were Jewish another reason for their demise was their different view on the communist ideal. When Heda tries to beg her husband to leave his government position he responds by saying â€Å"if all the decent people leave now, things will get worse. † Leaders like Slansky and Kovaly believed in the communist party actually as one for the people, they did not take huge bribes or look out for only themselves.They worked to do good for the party and the people. However, the Czech economy was failing, there was widespread social discontent and with tha t brought demonstrations and strikes. â€Å"Workers universally cursed the fact that everything is dear and wages are low†¦ A year ago salami cost 8 crowns and today it’s 28 crowns. † The government needed a scapegoat and Slansky (mainly him) as well as many Jewish officials were the perfect people to blame. Vzpominky Goldstucker actually spoke about Slansky saying â€Å"†¦He was cleverer than all the others so they had to get rid of him. †When the arrest of Kovaly’s husband took place and her friends and family found out, people purposefully avoided her and severed all contact with her. The government had effectively influenced people to fear going against them by staging arrests and trials such as Kovaly’s husband. A lot of what Kovaly writes in her memoir shows her being ostracized by society. Her husband’s arrest was one of those times. She wrote that people would spit at her and other people who were like her were stoned. At t his point in her memoir she doesn’t mention any anti-Semitic acts, only the ostracized effect that came with her â€Å"traitorous† husband’s arrest.When the trials began Heda was hospitalized due to her being sick of sleep deprivation, malnutrition, and stress, while she was in the hospital she heard her husband present a statement on the radio. Hearing his â€Å"flat and halting† voice leads her to believe that he is repeating a written statement which he was forced to memorize. Both Kovaly and McDermott touch on this subject of torture and forced statements. McDermott writes that the conduct of the court hearings came under criticism among citizens. Some people are saying that they have the impression that the trial is a show rehearsed in advance†¦ because the accused reply so fluently as if they are reading their statement. † Slansky was forced to do the same thing. He originally apologized for allowing some wrong people to make it through t he government ladder, but denied ever being traitorous, that was until the secret police began to interrogate him. They used a series of â€Å"physical and psychological pressures bordering on torture† which finally influence him to confess his â€Å"guilt†.While both Kovaly and McDermott addressed the torture that some of the prisoners received to influence their confession, Heda addressed a personal experience focusing only on her husband while McDermott’s article addresses several sources as well as explained deeper detail why the torture was used. With the regime change it was written that â€Å"The Death of Stalin Means Death to Communists. † The regime changed in 1956 and Kovaly writes that Nikita Kruschev gains power and criticizes Stalin’s reign. Quickly satellite nations begin releasing prisoners and declare them to be rehabilitated.The party even admitted that confessions were forced through torture, drugs, and psychological manipulation. The article does defend these points which Kovaly is making as well as takes it one step further by explaining some of the signs citizens were apparently posting in the towns. Even though Stalin was dead his anti-Semitic influence was not. An example would be an inscription found on the ground floor of a residential block which read â€Å"DEATH TO THE JEWISH TRAITORS-TO JEWS, GOTWALD AND THE JOINT- WE WANT A NATIONAL GOVERNMENT. † Although not mentioned by Heda Kovaly, hatred towards Jewish people was still present after Stalin’s death.People were influenced to believe that it was Jewish leaders fault for the hurt economy which is why many jokes, comments, and almost fighting broke out. Although the extreme hatred towards Jewish people was un-intentionally publicly created it grew to something that the government could almost not control. While Kovaly’s memoir depicts the suffering of the Czechoslovakian people as well as the Slansky trials, which her first hus band was a victim of, she never really touches upon the fact that many of the people tried, convicted, and killed were of Jewish decent.However, Kevin McDermott depicts the suffering of the Czech people as well as the trials in a completely different manner, addressing the anti-Semitic actions of the Czechoslovakian government under the rule of Joseph Stalin and the influence that followed his death. This difference in historical focus during the same time period happens because Kovaly is writing on personal experience while McDermott is not. His research however does allow weight to be brought to the experiences which Kovaly is writing by showing detail which she is missing.Still, Kovaly’s work does lack the reference of anti-Semitic acts which were extremely present during that time and continuously present in the article. ——————————————– [ 1 ]. McDermott, Kevin. â€Å" , â€Å"A ‘Polyphony of Voices’? Czech Popular Opinion and the Slansky Affair,†. †Ã‚  Slavic Review. 67. no. 4 (2008): 840-865. (846) [ 2 ]. McDermott 847 [ 3 ]. McDermott 847 [ 4 ]. Kovaly, Heda. Under a Cruel Star: A Life in Prague 1941-1968. Cambridge, MA: Plunkett Lake, 1986. Print. (101) [ 5 ]. McDermott, Kevin. , â€Å"A ‘Polyphony of Voices’? Czech Popular Opinion and the Slansky Affair,†. †Ã‚  Slavic Review. 67. no. 4 (2008): 840-865. [ 6 ]. McDermott 859 [ 7 ]. Kovaly 150 [ 8 ]. Kovaly, Heda. Under a Cruel Star: A Life in Prague 1941-1968. Cambridge, MA: Plunkett Lake, 1986. Print. 170 [ 9 ]. McDermott 852 [ 10 ]. McDermott 856/857 [ 11 ]. McDermott, Kevin. â€Å", â€Å"A ‘Polyphony of Voices’? Czech Popular Opinion and the Slansky Affair,†. †Ã‚  Slavic Review. 67. no. 4 (2008): 840-865. 849 [ 12 ]. McDermott 859 [ 13 ]. McDermott 859

The Effects of Raising the Minimum Wage on US Economy

People go to work to earn their income to support their family. Due to the fact that the prices of goods increase year and after year, the minimum wage has been increasing from less than a dollar to $7.25 now. The question that comes to everybody is that should we increase the minimum wage by too far. Does the minimum wage increase reduce the unemployment since now the current wage is high enough? Some people might think that we should increase the minimum wage in order to increase the labor supply. However, if we think deeply than this, there are more disadvantages than advantages of increasing the minimum wage. The farther the minimum wage increases, the less labor supply will be. Therefore, how will the minimum wage increase affect the US economy overall? How far should we go to increase the minimum wage? Drawbacks: We first define the definition of the minimum wage. It is the wage that must be paid legally to each employee. The minimum acts like a price floor that prevents the labor market to self-regulate without any intervention of the government. When the minimum wage is set in the market, the demanders (employers) and the suppliers (employees) will find it hard to negotiate over the market price. The higher the minimum wage is, the more condition the employers have on the employees. Now employers will have preferences since they can reduce any unqualified workers by demanding the workers who have high skills. There is a surplus in the labor market; in other words,Show MoreRelatedMinimum Wage And The Wage Essay1204 Words   |  5 PagesThe minimum wage is one of the most controversial issues on our country, which is United States has been facing last ten years. There have been never ending debates over this issue until the government, company, and others party stand together, and raise the minimum wage throughout the nations. 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