The Origin and Traits of Various Cultures Assignment

The Origin and Traits of Various Cultures - Assignment Example The significance of the events depends on their interpretation, through which they exert a pull on meaning and value. For that reason, history as a discipline is the study of the past. It is through learning history that the events of the past are legitimized by respecting the values and ideas of the people and their objective behind their actions. Therefore, history can be defined as the story of the civilization of mankind, depending on the interpretation of well-established and recognized primary sources.Culture is the characteristics and traits of a meticulous group of people who can be defined by common behaviors, beliefs, social habits, religion, language, cuisine, art, and music. There exist numerous cultures; Western, Eastern, Latin, Middle Eastern and African cultures. The members of each culture have universal characteristics that are common. They form a society, which is an interaction between people who share a common culture. A cultural attachment may be racial, ethnic, gender, values, beliefs, and activities. It is through the culture that individuals and groups get to identify themselves; conforming to that society’s values, beliefs, and traditions. It is evident that culture involves many aspects: customs, language, norms, rules, and more. In today’s world, the term culture seems to lose some of its usefulness because people share resources and interact globally (182). It is unlike the past where people labored and lived in small groups in the same vicinity.  Ã‚  

A History of Labour Day in Canada Essay Example | Topics and Well Written Essays - 2000 words

A History of Labour Day in Canada - Essay Example On a Sunday evening a century ago this weekend, 14,000 francophone workers gathered on Old Montreal to prepare for Labor Day. Instead of shouting through the streets, they quietly converged in Notre Dame Church, where Paul Bruschesi, then Archbishop of Montreal, urged them to shun strikes and show reverence to their employers. That same day, 2,000 Anglophone workers descended on what later became St. Patrick's Basilica, in the core of modern downtown Montreal, to prepare for the next day's parade. They heard the identical don't-rock-the-boat message as clergy instructed them to put their trust in church arbitrators to resolve disputes over pay, hours and conditions of work and other issues. Now two Toronto historians have crafted an illuminating, sometimes offensive retrospective of how Labor Day has been marked across Canada. With anecdotes like those above, York University history professor Craig Heron and Steve Penfold, an assistant professor of history at the University of Toront o, deliver substantial analysis. They show how the Labor movement has evolved since the 1880s, along with Canadian society as a whole. In many parts of the country, "Labor Day would eventually die out completely as a workers' festival, or limp on as a spiritless exercise in commercialized civic boosterism" Strong words, Stirring prose.In significant ways, the authors conclude, Labor Day in Canada "is the story of a holiday that never really belonged to workers" and has been supplanted by such holidays as May Day and International Women's Day. Their tone is not entirely bitter or sardonic, though. Heron and Penfold linger in loving detail over the floats, costumes, banners and placards that once made Labor Day parades a key event on community calendars. And they illustrate their points with superbly evocative photos. Even readers inclined to disagree with their hard-edged assessments will concede that Heron and Penfold have laid invaluable groundwork in an area that to date has been poorly documented. They note that times have changed. Early in the last century, "no Asian workers from British Columbia's fish-packin g plants and sawmills ever got invitations to join the West Coast marchers. "In fact," they add, "Victoria's tailors carried a banner in 1901 blaming the Chinese for their plight." Heron and Penfold were hampered, while researching the book, by the fact that few records of past Labor Days have survived, beyond newspaper accounts of the day. In typically quiche fashion, they note that an 1898 parade float by Winnipeg tailors lambasted the awarding of a city-council contract for firemen's uniforms to a local sweat shop -- an open display of dissent that was "apparently ignored by the mainstream newspapers." They learned of it from a small workers' newspaper. In this painstakingly researched volume they elaborate how Labor Day parades have had splendid moments in our history. Primarily, the parades were a much sought-after festival aimed at eliciting attention to the role and needs of Labor. They became a very rich art form developed jointly by organized workers in Canada. Nevertheless, they were also bitterly disheartening to those who attempted to indulge masses of workers in the celebration. The first Labor Day procession was in Toronto in 1882. At that time one of the demands of Labor was to call for a public enquiry into the status of

Research into Truancy: Causes and Effects

Research into Truancy: Causes and Effects Introductory orientation Truancy is about learners who have not been attending school regularly as required by the school, parents and even the authorities. Truant behavior is a problem for the individual, the family, the school and society in general. Free and compulsory education is recognized as a basic entitlement under international standards, including the United Nations Universal Declaration of Human Rights (1948), the Convention of the Rights of the Child (1989) and the European Convention on Human Rights (1950). With the right to free education and the obligation corresponding to this right observed and enforced through a national emphasis on school attendance, The National Statistic Office (Malta) states that in the 2004/2005 scholastic year the figure for school absenteeism accounted for 7.7% of the total number of school days in the reference period or an overall absence rate of 9.2 absent days per pupil that for boys being 10.0 days per pupil and for girls 8.4 days per pupil. As a teacher this makes me fretful about students missing school as this can be associated with subsequent emotional and psychosocial problems in early adulthood and is a predictor of multiple problems (Fogelman and Hibbert, 1990). Truancy may have both short and long term effects on society. There is evidence that truancy is linked to delinquent behaviour and juvenile crime (Collins, 1998; Reid, 1999). According to Jones (1996), ‘Absenteeism is a sign of trouble that often leads to lower academic skills and grades, delinquency, and dropouts. Studies have shown that high school dropouts are twice as likely to be unemployed and on welfare, and overall, tend to be facing a more difficult life than their graduating counterparts. Jones (1996; p.128), All members who form part of any educational institution cannot allow these students to give up on themselves. We as a modern, fast developing society, we cannot afford to let them surrender. It is clearly far less expensive to educate them than pay for a lifetime of welfare and all of the deprivations that welfare represents. These are ominous issues, which imply that the number of students who skip school is rising and that school absenteeism is a new generations behaviour that is today a dramatic social phenomenon. This proposal drafts the intent to investigate and explore realities of how truancy manifests with Maltese youth and also explore the psychosocial world of truants in Maltese schools. Problem Analysis The Pre-Scientific Problem awareness As a supply teacher for these past five years, I have witnessed incidences of truancy in the period 2006 to 2009. One of the common truancy reducation measures used was to lock the school gates during lessons and breaks and open them after school hours (my personal exsperience). Despite the limited impact on truancy reducation, the approach of locking gates is still common and evident in some secondary schools. I found locked gates while visiting some of the schools. Gangsters, to control late coming and to stop learners from dodging classes, locked gates to prevent trespassing, sepecially. Exploring the problem Incidence and nature of truancy Malta Since 1946 education has been compulsory for all children between six to fourteen years and extended to the age of 16 by the Education Act (Malta) of 1971. Maltese law imposes a duty on parents to ensure that their children of compulsory school age receive appropriate education, whether through attendance at a state or independent school. If they fail to do so, without any reasonable excuse and if found guilty, they are liable to a fine not exceeding in previous currency one Maltese Lira (equivalent to â‚ ¬2.33) for each day during which the offence continues, unless the parent fails to give a good and sufficient explanation within three days from the date he or she receives a notice from the Director of Education (Malta Education Act 1988). From January 2001 up to December 2002 there were 8,903 arraignments before the local tribunals in connection with school absenteeism (Grech, 2002). This figure represents only the number of students who were absent from school without a valid reason on more than three occasions in the time frame of a month. It is a known fact that there are a number of students that systematically plan three days off from school each month, just for the sake that they use their monthly absence allowance and knowing that in this way their parents would not receive a citation. Surveys show that the overall absence rate between 25th September 2000 to 31st March 2001 stood at 10.5 days per pupil (NSO Malta, 2001). This figure reveals an increase of 5.2% over 1999/2000 scholastic year (NSO Malta, 2001). Thus it shows that during this period, 657,604 pupil days were lost to absenteeism and authorised absence due to sickness. Indeed, the Clark Report (2005) shows concern for the increase in unauthorised absenteeism with parental consent, particularly in state secondary schools which cater, in the main, for a student population coming from a working- class background. Family problems, psychological problems, illnesses, school phobia and bullying have, significantly, been indicated by the Clark focus group to be the topmost reasons contributing to school avoidance. Some Overseas Countries Most of the research conducted abroad seems to provide information regarding the nature and extent of truancy in secondary schools. Results of a study conducted at a school in London from 1985 to 1987 revealed that 70% of the sampled pupils admitted truanting during the three-year period (Stoll, 1990:22). In the study that involved nine secondary schools, 66% of the 765 fifth year pupils admitted truanting (ibid). Figures on truancy in 150 English secondary schools revealed that 31% of pupils in years 10 and 11 admitted that they played truant or skipped lessons (OKeefe Stoll, 1995:12). Gray and Jesson (1990:25) report about the major national survey results of truancy in English secondary schools. According to this study, 23% of all fifth year pupils were involved in truant behavior and they were less likely to stay on in full-time education. Furthermore, schools facing serious problems of truancy tend to be in the inner city rather than in other areas (ibid). on the other hand, Collins (1998:26) reports that absentee rates vary between schools in the London Education Authority. Munn and Johnstone (1992:4) found that out of a sample of 50 Scottish secondary schools, 18% of the pupils (11% in June and 7% in November) were classified as truants and were mostly form the senior years. These figures exclude truants within the school day, as â€Å"14 schools reported that they did not keep period attendance records† (ibid). Truancy has long been a subject for research in various parts of the USA. According to Nelson (1972:98), 64% of the 591 students surveyed identified themselves as class truants. Learners habitually play truant each day in Los Angeles, Pittsburg and Milwaukee (Black, 1996:33). Bos, Ruiters and Visscher (1992:393) found that the average rate of truancy in 36 schools in the four Dutch cities studied was 4.4% and that truancy increased with the level of the class in almost all schools. Some researchers further indicate that truancy does not necessarily mean missing the whole day of school but found that I could be in the form of missing a part of a day or particular lesson (Kilpartick, 1998:31; Reid, 1999:91). In a study conducted by Malan in South Africa (1972:144), 2,738 out of 69,908 pupils were identified by their teachers as truants. Masithela (Masithela, 1992:33) observed that learners tend to miss lessons during the first and second periods, as well as during the last give periods. The tendency of missing certain lessons towards the end of the school day shows that some form of â€Å"hidden truancy† is prevalent and that pupils can be marked present in the register but fail to attend all lessons (ibid:45). On the other hand, they may come late and be marked absent or be somewhere on the school premises not attending certain lessons or periods, but still be marked as being present on the class resisters. Factors associated with truancy Malta Truancy is about learners who have not been attending school regularly as required by the school, parents and even the authorities. Tyerman (1968) defines the term truant as the child who is absent from school purely on his or her own initiative. Gabb (1994) includes in his definition of truant, that a child who is absent with leave given by his or her parents, or who are actually kept at home by the parents. Hersov (cited in Gabb, 1994) goes still further, dividing from truants, ‘school phobics and ‘school refusers. King (2001) furthermore defines school refusal/school phobics as a difficulty to attend school due to emotional distress, especially anxiety and depression. Fenech (1991) (in an unpublished research) defines ‘absenteeism as ‘being away from lessons for any period of time and for reasons not considered as legitimate, with or without the parents knowledge (p.3). She goes on to include ‘physical presence without any attention being given to a lesson in progress [as well as] masked or selective truancy (ibid., p.3). Fenech (ad. lib.) refers to the latter as ‘skiving off specific lessons or disappearance after registration (p.3) remarking that a number of sources consider absenteeism and truancy synonymous. Sultana (1997), like Fenech (1991), defines absenteeism as ‘staying away from school for reasons not justified by the law (p. 355). However, she goes on to include other ‘less overt ways (ibid., p 355) such as what Willis (1977) calls participating in ‘informal mobility (ibid., p. 355). This includes not entering the class for lesson, intentionally staying in another class, leaving the class without permission, or staying in class without bothering to follow the lesson. Studies conducted abroad When seen from a psychological viewpoint, truancy may be symptomatic of learns who are insecure and have low academic achievement levels and low self-esteem. Lewis (1995:37) states that attendance difficulties my broadly result from a combination of â€Å"pull† and â€Å"push† factors. Pull factors are personal and social aspects that â€Å"pull† a learner out of school. The pull factors may be related to the psychological indices mentioned by Reid (2002:11), such as maladjustment, a lower general level of self-esteem and academic self concept, anxiety and lower career aspirations. Factors that â€Å"push† learners away from school include academic and classroom aspects such as inapproachability of the teaching staff, incomprehensible teaching style and inappropriate classroom management. Other factors relating to the school and the classroom include bullying, the curriculum, boring lessons (Reid, 1999:91), teachers humiliating remarks (Porteus, Clacherty, Mdiya, Pelo, Matsai, Qwabe and Donald 2000:11), poor record-keeping and school organization (Bimler Kirkland, 2001:90; Coldman, 1995:29). According to Pappas (1996:1), truancy is often symptomatic of family dysfunction, since the parents of truants tend to be permissive, undisciplined and unavailable. Some authors believe that truancy is associated with a poor socio-economic background, including poverty, poor housing and unemployment (Bell, Rosen and Dynlacht, 1994:204; Tyerman, 1958:222). Some researchers state that there is a link between truancy and delinquent behavior (Collins, 1998:38; Brown, 1998:298-299; Reid, 1999:25). Truancy differentiated from school phobia There is a need to distinguish between truancy and school phobia. The concept â€Å"school phobia† describes a learner who is unwilling to attend school and stays at home with the knowledge of parents (Wicks and Nelson, 2000:123). A learners problem often stats with a vague complaint or reluctance to attend school and progresses to total refusal to go to school. Blagg (1992:121) asserts that school phobia may be induced by fear-arousing aspects of school, such as fear of failure caused by anxiety about meeting the standards. Fear may also be related to worries about the health and welfare of parents (Blagg, 1992:123). In the other hand, a learner who plays truant misses the whole school day or lessons without the knowledge of parents or caregivers. Furthermore, a truant tends to be involved in various forms of anti social behavior (Blagg, 1992:121). Milner and Blyth (1999:18) acknowledge the difficulties involved in studying the prevalence and pattern of truancy and in comparing current and past school attendance or absence. The difficulties are partly compounded by the variations in the definition of truancy itself (Boyd, 1999:22; Gabb, 1997:2) and the multifaceted nature of truancy (Edward and Malcolm, 2001:1; Reid, 1999:17). The problems associated with studies on truancy should, however, not prevent further research from being conducted. Solutions should be found, or the cause at least eliminated, because truancy is regarded as a serious problem with socio-economic implications. A preliminary review of the literature reveals that truancy is a major problem form schools and society and a most powerful predictor of juvenile delinquent behavior (Van Petegem, 1994:272; Wiehe, 2000). Reid (2002:2) maintains that the amount of money spent on truancy reduction initiatives proves the extent of truancy. Statement of the problem Data on the extent and nature of truancy in schools are often based on information obtained from class registers. This information may be inadequate or almost incomplete and limits the understanding of the phenomenon, thus making it difficult to develop appropriate intervention strategies. More insight on how truancy manifests is needed to provide a base on which to suggest, plan and develop effective intervention strategies. Therefore, further research is needed to enable education officials, schools, parents and other professionals to manage learners with attendance difficulties more efficiently. This study serves to bridge the information gap regarding the nature of truancy and to provide a picture of the life world of truants in Secondary Schools. Aims of the Research The General Aim The aim would be to describe truancy in general as stated in the literature and to conduct an empirical study in order to determine how truancy behaviour manifests in secondary schools and what the life world of truants looks likes. The findings can then be used to inform and guide future practice. The Specific aim The aim of the study would be to gather information that will be used to guide the school (college) community namely the SMT, form teachers, subject teachers, guidance teachers and school councillors, youth workers in school and other stakeholders to help in the interventional approaches and procedures that can be used for reducing truancy. In order to realise the above aims, the following questions are set to direct the research: What is the extent and degree of truancy in terms of the frequency and number of learns involved? What are the patterns, type or nature of truancy? Where do truants go when not at school or in class? What measures are used to monitor and manage truancy? Research Method The study will comprise two methods, namely, a literature study and an empirical investigation. A study of the literature will derive information on studies about poor school attendance and procedures employed to mange or reduce truancy from books, research articles, journals and other resources. A quantitative research design will be used in the empirical investigation. This investigation aims to gather data by means of a questionnaire that will be given to learns in Form 1 and Form 2 in eight randomly selected schools, , incorporating two Junior Lyceums, two Area Secondary and two Church schools. A qualitative research design will be used with guidance teachers, counselors, youth workers, form teachers, Assistant Head of Schools and Heads of School currently working in schools. A focus group and interviews with Heads will help me to investigate what the School community is doing to combat truancy. Such data will be advantageous in that they are ‘the most adequate [tool] to capture how a person thinks of a particular domain (Goldsmiths Collage, n.d.). More over since a face to face rapport with the interviewee, it is induced to continue questioning the subject in order to confirm the hypothesis about his or her beliefs, seeking appraise any underlying meaning in the process. Demarcation of research Due to time constraints, the preset research is confined to then 8 randomly selected secondary schools in Malta. A list of all secondary schools was compiled to allow for the random selection of 8 schools, which will form part of this study. This sample was mainl cohosen on the basis of cost implicaitons and accessibility. Explanation of concepts In this section a number of concepts that are relevant to this research are defined. Truancy Reids (1999:1) asserts that the term ‘truancy is often misused and can be applied both generically and with a local meaning. In the different parts of Great Britain, truancy is known as ‘dodging, ‘skipping off, ‘mitching, ‘skiving, ‘bunking off and ‘going missing, respectively. Whitney (1994:49) defines truancy as ‘absence that has not been authorized by the school and where leave has not been given or approved. Another definition provided by Collins (1998:2), who states that truancy is about pupils who have been registed with a school but identified as not attending school when the law says they should. This definition includes absences from a particular lesson or lessons, known as ‘post-registation truancy (Gabbs, 1994:5; Stoll, 1990:23). Clark Report (2005) identify as truancy when a student is voluntarily absent or not attending school without their parents permission and often, awareness (Anglicare, Werribee Family Services 2000). Truancy is defined as unjustifiable or unexplained absence from school with attempts by the student to conceal the absenteeism. Usually the child avoids home when not at school and the parents are often unaware of the childs absence (Rollings, King, Tonge, Luk, Heyne, Ramsdell, Burdett Martin, 1999). The concept blanket truancy refers to absence from the whole school day, which is usually reflected on the class register, while post-registration truancy occurs when the learner is marked present but fails to turn up at a lesson or lessons (Stoll, 1990:23). In this research, the term ‘truancy is broadly defined as unauthorized absence from school. The definition is adopted with the assumption that absence with the knowledge and permission of the school and parents or guardians does not constitute truancy. Since the study seeks to explore the type of truancy as manifested at secondary schools, both concepts of truancy (blanket and post-registration) are relevant and will be investigated. A Truant A truant is a ‘child aged 6 17 years old who absents himself or herself form school without a legitimate reason and without permission of his or her parents or the school official (Schaefer and Millman, 1981: 335). For the purpose of this research, a truant refers to a learner who, after being registered at a school, absents himself or herself from school or lessons without a legitimate reson or permission from parents or the school official. The traditional or typical truant: Traditional truants tend to be isolated that come from an unsupportive home background, possibly with a tendency to be shy. It is likely that they will have a low self-concept, be introverted and be the citim of their social circumstances. The psychological truant: could be the school phobic (school refusal) case but more othen than this psychological truant miss school for psychological related factors such as illness, opsychomatric complaints, laziness, a fear of attending scholl for any reason (such as dislike of a teacher, a lesson, an impending confrontation or fear of bullying.) The Institutional truant: Institutional truants are more likely to indulge in ‘on the spur of the moment absences from lessons and to be selective about days or lessons to miss. Secondary School A school that admits or registers and educates learners in Form 1 Form 5 is known as a secondary school. Life World In this research, the term ‘life world refers to the psychological context this is made up of elements such as interpersonal aspects, the family, school and the broader community. According to this definition, the life world involves the personal and external world of the learner. The personal word refers to intrinsic factors. The external word is made up of the broader educational systems, the home environment and the community where the child spends his time when not at school. Relevant intervention strategies would be easier to suggest if the contextual issues related to the phenomenon under investigations are understood. Research Program The research comprises give chapters, as follows: CHAPTER 1 In this chapter, the background information in the seriousness and implication of truancy are discussed. The chapter also includes an analysis of the problem, the problem statement, aims of the study, description of the research method and definition of the concepts. CHAPTER 2 Chapter 2 entails a review of the literature on types of truancy and the causes of truancy or contributing factors in different countries, including in Malta. Different approaches that the various countries and schools use to manage truancy will also be discussed. CHAPTER 3 This chapter deals with research designs and methods. A discussion of the research problem, the aim of the empirical investigation, the research tool used in the study and the selection of the sample will be included. Details of the compilation and administration of questionnaires as well as an analysis of data will be presented. CHAPTER 4 In this chapter, the results of questionnaires will be presented. The results will be analyzed to find answers to the research questions. CHAPTER 5 The chapter entails a summary of the research finding, conclusions and recommendations. A summary of the results from the literature study and the limitation of the study will be included. Conclusion This chapter focuses on the background and analysis of the problem, as well as the aims of the study. An attempt will be made to explain the research method used, relevant concepts and planned programmes of the research. The next chapter will contain the review of the literature on the types of truancy, factors contributing to truancy behavior, the rate and extent of truancy and the strategies used to manage truancy. CHAPTER 2 TYPES OF TRUANCY, CAUSAL FACTORS AND APPROACHES USED IN THE MANAGEMENT AND REDUCTION OF TRUANCY Introduction According to Tyerman (1958:217), truancy has been a problem to all concerned with education since 1870s. Approximately 750 children were charged for truancy in England and Wales in 1954 (ibid: 220). This figure could have been an underestimation as it was based on learners who were referred to courts, and therefore represented mainly incorrigible truants (ibid). Furthermore, the figure gives a general picture of truanting children in one country only and without an indication whether it was absence from certain lessons or whole school day absence. Truancy is currently a problem in communities. In Clarks report concern was expressed about truancy among school children. Data presented in this report indicates that non-attendance exists, and has become an issue of increasing concern for schools, educational and student welfare organizations. Non-attendances viewed as being among one of the key problems facing some schools. There is increasing concern for the seemingly large number of ch ildren and young people, who are, for a range of reasons, missing out on the benefits of education and possibly on a better future (Dr. L. Galea, The Times 9th February, 2005). Non-attendance can be the beginning of countless problems for students who regularly miss out on school (Heyne, King, Tonge, Rollings, Pritchard Young,1999). The extent and nature of truancy are best understood in terms of whether it implies absence for the whole day or during a particular lesson. This chapter deals with how blanket and post-registration truancy manifest, the causal factors and various measures of reducing truancy in secondary schools. Blanket Truancy Perspectives in various countries England and Wales Normab (2001:49) states that 50,000 children play truant on a normal school day in England. The number of truants increases steadily with age and most truants are found at secondary school (ibid). This confirms past research findings about the existence of truancy in secondary school in some parts of England. Gray and Jesson (1990:25) gathered information on the incidence of truancy from the youth cohort survey of England and Wales. The result of their survey shows that 6% of final-year secondary school learners reported to have played truant for several days or weeks at a time. Malcolm, Wilson, Davidson and Kirk (2003:50) state as follows: ‘In 1999, the Audit Commission noted that at least 40,000 of the 400,000 learners absent from school are truanting. Scotland In a study done at 50 Scottish secondary schools, it was found that 30% to 33% of learners had been playing truant at least once in the survey week (Munn and Johnston, 1992:38). These schools were requested to provide both the overall attendance rate and the numbers of learners (ibid). Australia Haddon (1996:110), citing a comprehensive study conducted in Victorian secondary schools in Australia, states that 40% to 60% of learners of compulsory school age reported that they engaged in truancy. Cohen and Ryan (1998:12) state that about 10,000 learners in Tasmania play truant at least one day a week. The Netherlands The research done at 36 schools in four Dutch cities indicates that the average level of truancy at all schools was 4.4% (Bos, Ruiters and Visscher, 1992:393). The average percentage of allowed absence was 4.7%, therefore suggesting that learners in most schools are just as often absent with a valid reason as without one. United States of America It appears that truancy is a problem in American schools, although at varying levels. According to Black (1996:33), approximately 2,500 and 4,000 learners play truant on a daily basis in Pittsburg and Mulwaukee, repectively, while 300,000 of the 1.6 million students in Los Angeles are habitual truants. This shows that some learners stay absent without permission every day and that a day never goes by with a recording of 100% attendance. Truancy is so much of a concern that the Department of Education has prepared a manual that gives schools some guidelines on how to reduce it (United States Department of Education, 1996). Malta From January 2001 up to December 2002 there were 8,903 arraignments before local tribunals in connection with school absenteeism (Grech, 2002). This figure represents only the number of students who were absent from school without a valid reason on more than three occasions in the space of a month. It is a known fact that there are a number of pupils that systematically take three days off from school each month just for the sake that they use up their monthly absence allowance and knowing that in this way their parents would not receive a citation. Survey results issued by the National Statistics Office Malta on December 16, 2002 showed that overall absence rate from schools between September 25, 2000 and March 31, 20001, stood at 10.5 days per pupil. That included both absenteeism and authorized absence (such as those due to sickness). During this period, 657,604 pupil days were list to absenteeism, accounting for 8.9 per cent of the total pupil days. This reveals an increase of 5. 2 per cent over the 1999/2000 scholastic year. Absences in government schools stood at 19.12 days per pupil whereas that of government dependent (church schools) and independent private schools was 5.76 days per pupil. The rate of truancy in terms of gender Some of the overseas researchers state that there is no difference in the levels of truancy reported for males and females (Gray and Jesson, 1990:26; Haddon, 1996: 110; Smith, M., 1996:226; Stoll, 1994:36; Whitney, 1994: 59). Recent research on truancy in the seven local education authorities reports that the numbers of learners in secondary school admitting truancy was almost equal for boys and girls (Malcolm et al., 2003:31). Coldman (1995:68) also states that the variation that exists in truancy levels of males and females is slight. It is, therefore, apparent that some research are in agreement with regard to the truancy levels of male and females learners. Earlier research that was conducted in South Africa suggests that more males than females tend to play truant Coldman (1995:68) warns against making assumptions and generalisations about the existence of gender differnce in truancy levels. He argues that observed findings might result from the fact that some schools have more males than females, particularly when one is dealing with a large sample. What the above studies suggest about truancy levels of males and females is that the difference might be slight, if it does exist. Furthermore, observed diffrenences may be incfluenced by other variables, such as the enrolled number of male and female learners in a sample. Truancy rate according to the geographical location of the school Serious truancy is said to be more prevalent in inner-city secondary schools in England (Gray and Jesson, 1990:36; Stoll, 1990:23). Munn and Johnstone (1992:4) also found that the Scottish school with the highest percentage of unauthorized absence was all in the inner city. Coldman (1995:69) asserts that claims that truancy is a problem mainly experienced in inner city schools are disputable, since another survey showed that the truancy level is high even in the suburban, rural and industrial areas of England. It may therefore be purely speculation, without much supporting evidence, to suggest that inner-city school experience higher levels of truancy. Hard evidence needs to be gathered, where possible, in order to verify the claim that inner-city experience higher rates of truancy. According to some researchers, truancy levels also appear to differ from school to school, since they may be more prevalent in schools than in others (Blackm 1996:33; Bos et al., 1992:385; Gray and Jesson, 1990:26; OKeefe and Stoll, 1995:12). It is therefore apparent that the levels of truancy seem to vary from country to country, and in some cases, also in terms of geographical locations within a city or town. The literature indicates that blanket truancy is common in many secondary school and that, in some cases, learners play truant on a daily basis. The levels of blanket truancy can also vary according to regional locations within the same country. In the next section, the evidence regarding the level of post-registration truancy drawn from the literature will be discussed. Post-registration Truancy Very little information is given in the literature about national trends of post-registration truancy in countries where research on truancy was conducted. Most of the studies conducted in the United Kingdom, Australia, the United St Determinants of Health: Area of Residence Determinants of Health: Area of Residence Lisa Theaker The overall health of an individual and of communities can be defined and affected [LF1]by many factors. Circumstances and environment play a massive part in determining whether a Person or Persons can be categorised or labelled as being â€Å"Healthy†. Some of the more common of these determinants are issues such as area of residence- the affluence and prosperity of the general area, the income of the individual or family unit, the levels and standards of education available within the area, social relationships and at the most fundamental level, genetics also play a part. From a social perspective, factors such as access to good quality health services are considered to be a secondary factor and have less of an impact on the individuals’ health than the others. A person’s health is often determined by issues such as their social and economic environment, their physical environment and their general behaviours and lifestyle choices. An individual only really has control over one of these factors – the lifestyle as it is of their own choosing whether they have a healthy diet, if they smoke or drink alcohol. This too is determined to some extent by the level of social, physical and economic factors (WHO, date unknown) (Naidoo et al, 2000). Income and social status or class differences are displayed in statistics from different areas and often show direct correlation to the health of the individuals within them. A better income and â€Å"higher class† proves to be critical in better health. This is due to better quality of diet, access to education and better working environments. Studies have shown that where the greater difference in income between richer and poorer individuals exist, then this is reflected and evident in the statistics of health (Naidoo et al, 2000). Education levels at a lower standard are also linked with poor health. People with a low level of education often have low self-confidence and are found doing lesser paid yet more manual labour in health affecting environments such as factories. This also affects stress levels as well as income. The knock-on effect this produces brings inequalities such as poor housing and unsanitary living conditions in what are commonly labelled as â€Å"deprived areas†. All the factors affecting these communities have a profound effect on the health of not just the individual, but of their families also (BBC, 2008). The physical environment often impacts upon the health of families and individuals [LF2]alike, both in a domestic and workplace. Areas of residence with good quality road networks, decent acceptable housing, safe water and clean air [LF3]are statistically proven to show greater levels of better health of residents than areas with heavy industry, both now and historically. Air pollution is a major contributor to ill health, especially if the individual has an underlying or pre-existing health condition such as asthma. People who live and work in cleaner environments are often generally healthier, or display less health issues than people working within these area of heavy industry. Workers in heavier industries such as coal mining and steelworks have no control over they’re working environment, and although health protection equipment such as dust masks and ear protection are now issued as standard, this has not always been the case and generations of workers have suffered some times horrendous health issues from diseases and conditions associated with working in the dusty, noisy conditions for many years unprotected. Cases of emphysema, a lung condition where essentially the lungs are filled with dust which eventually hardens, have[LF4] affected many generations of coal miners (WHO, date unknown). Social support networks in communities are also proven to show links to improved health. Areas with community support outlets that offer help and advice with aspects covering stop smoking services, job-seeking and educational courses can encourage and offer the means to people within the community to improve themselves both mentally and physically and this has a profound effect on their health by improving their prospects and their self-esteem (WHO, date unknown). The genetic makeup of an individual can also be a major contributing factor to their health and can determine possible lifespan, overall healthiness and the possibility of developing certain illnesses. Personal behaviours of lifestyle can be influenced at an early age, where a parents input on the diet and lifestyle habits are often impressed upon children from a very early age. These attitudes are often carried into adulthood from children having witnessed the un-healthy practices of parents, and assume them to be acceptable and normal. Factors such as smoking and the consumption of alcohol are some of these. General coping skills can be witnessed by the nest [LF5]generation and can often lead to problems with their own coping mechanisms later in life (BBC News, 2008). Access to health services are a fundamental factor too. Good accessible health provision is essential for the maintenance of health within communities – whether the individual chooses to access these available services is down to their general attitudes to their own health (WHO, date unknown). Lifestyle choices such as smoking, drinking, promiscuity and a balance of healthy diet and exercise are in the hands of the individual. These choices are also determined by the levels of income and area of residence. Deprived areas, even within the same general locality and country statistically show that this is the case. For example – Calton, an area of Glasgow in Scotland, shows a distinctive rise in the mortality rates in males when compared to a more affluent area of Lenzie. A baby boy born in Calton will have an average life expectancy of 28 years less than a boy born and resident in Lenzie. This is explained by Calton simply being less affluent. The population of Calton are generally of a lower social class, and the mortality rate reflects this amongst males of comparable ages. This is not just in Scotland however, similar findings have been reported in areas of London. The life expectancy varies by 11 years from residents of affluent Hampstead to St Pancras, which is c onsidered to be less affluent (BBC News, 2008). [LF6] People from lower classes experience greater levels of sickness and ill health, whether this is from lifestyle choices or work environments (if they actually work). Work and employment levels are a very important factor to consider. The work environment determines income levels and can directly affect the health of the individual. Some work environments are considered to be â€Å"high-risk† because of accidents, hazardous materials or even stressful situations (WHO, date unknown). A very detailed and thorough discussion of determinants of health however this could be strengthened by creating greater links to the models of health. There are more factors to the determination of â€Å"Health† than reviewing and [LF7]considering the technical issues of income, employment, lifestyle and the areas where people live, although these are statistically proven to have a major impact. Many would consider that ill health of an individual comes about as a direct result of lifestyle choices and that by adequate and improves healthy lifestyle promotion campaigns, theses can make a difference and encourage the individual to make changes and be responsible for taking steps to improve their health and that of their family. This is not always the case however, when the truth maybe that the individual has little or no control over the choices to be made. This serves to strengthen the argument that ill health is not in the hands of the individual rather that its roots lie in the social and economic domain. If the means are not available to make the changes, then it is impossible to do so. It is true however that some people do make the effort to maintain their health and that of their families eve on sometimes limited income however the social environment of poor quality housing and the air around where the live prevents them from doing so. The air quality is beyond the control of anyone. These factors are major contributing issues. Regardless of the input of any health promotion campaigns and any amount of income, this cannot be changed – other than to provide the means to move their family to a less polluted environment. Ill health does not occur merely by bad luck. The imposing factors from birth and through the entirety of an individuals’ life, through to their demise are paramount to affecting how these years are spent, whether in good or bad health. Social factors such as class and ethnicity come into play when tied in with the universal factors of age and gender. The gender, ethnicity and age of the individual cannot be changed, however it is possible that the social class can be altered given the right circumstances. Environmental factors such as housing provision, and the quality and area of it are also major factors – the area of residence and the amenities that are offered there, such as leisure facilities and access to health services have an impact upon the health of the residents. Lifestyle factors such as smoking, nutrition, exercise and the psychosocial environment are also major factors. The amount of stress and worry experienced by the individual are paramount to the levels of the other factors. Smoking levels increase in stressful environments as does overeating (Naidoo et al, 2000).[LF8] References BBC News (28th August 2008) ‘Social factors key to ill health’ [online] Available at: http://www.news.bbc.co.uk/go/pr/fr/-/1/hi/health/7584056.stm [Accessed 5th April 2014] Health Poverty Action (date unknown) ‘ factors that Determine Good or Poor Health’ [online] Available at: http://www.healthpovertyaction.org/policy-and-resources/the-determinants-of-health/ [Accessed – 5th April 2014] Naidoo, J Wills, J. (2000) ‘Health Promotion – Foundations for Practice’ (2nd edition) London, UK: Harcourt Publishers Ltd World Health Organisation (date unknown) ‘Health Impact Assessment – The determinants of health’ [online] Available at: http://www.who.int/hia/evidence/doh/en/ [Accessed – 5th April 2014] Bibliography Health Poverty Action (date unknown) ‘The Cycle of Poverty Poor Health’ [online] Available at: https://www.healthpovertyaction.org/policy-and-resources/the-cycle-of-poverty-and-poor-health/ [Accessed – 5th April 2014] The College of Occupational Therapists (COT) (2013) ‘Social Determinants of Health’ [online] Available at: https://www.cot.co.uk/social-determinants-health [Accessed 5th April 2014] Very good range of sources used. [LF1]Is this the ‘Introduction’ section? [LF2]Is this the ‘Discussion of Findings’ section? [LF3]You are right but need to clarify what is meant by these i.e., give the parameters [LF4]‘has’ [LF5]‘next’ [LF6]Excellent points and use of example/source [LF7]Is this the ‘Conclusion’ section? [LF8]An excellent conclusion – very well thought out! Well done! However this should have been in report format!

Robertson Davies :: Biography Biographies Essays

Robertson Davies With a vision that reflects the experiences of Canadians, Robertson Davies achieved international renown as one of Canada’s foremost men of letters. Born in Thamesville, Ontario, on August 28, 1813, Robertson Davies was the youngest of three sons of newspaper publisher and Liberal senator William Rupert Davies and his wife, Florence Sheppard McKay Davies. With parents who were theatre enthusiasts, Robertson Davies was drawn to the theatre early in his life and acted in school plays. At the age of five, Davies’ family moved to the small town of Renfrew in the Ottawa Valley; when he was twelve, Davies moved to the city of Kingston, where his father owned the local newspaper, the Whig-Standard. From 1928 to 1932, Robertson Davies attended Toronto’s Upper Canada College – the "Colborne College" of his novels Fifth Business, The Manticore, and What’s Bred in the Bone. Truly, these Ontarian towns shaped the geographical heart of Davies’ fictional works. At the Upper Canada College, young Davies was immersed in school dramatics and was the editor of the school paper. Admitted to Queen’s University in Kingston as a special student because he was "hopeless in mathematics," Robertson Davies excelled at the university from 1932 to 1935. He was active in the Drama Guild at Queen’s and continued to be involved in the student theatre at Balliol College in Oxford. Here, he received his B.Litt. in 1938 for a thesis he published the following year, entitled Shakespeare’s Boy Actors. Upon graduation, Davies joined the prestigious Old Vic Theatre Company in London, where he married its stage manager, his life-long wife Brenda. In 1940, Robertson Davies and his wife returned to Canada, where Davies became literary editor of Saturday Live, then a weekly review of politics, finance, and the arts. The first of his three daughters was born that December. In 1942, Davies became editor of the Peterborough Examiner – another of his father’s papers – and he was to hold this post for the next twenty years. Davies became an increasingly popular columnist, "Samuel Marchbanks," whose witty comments and humorous accounts of small-town American and Canadian life would later be published in three volumes between 1947 and 1967. From 1955 to 1965, Davies was the publisher of Examiner. By this time, he had already written eighteen books, numerous plays, and produced many articles for various journals. His first play, Eros at Breakfast won the 1948 Dominion Drama Festival Award for best Canadian play.

Indian Banking Sector

A bank is an institution that deals in money and its substitutes and provides other financial services. Banks accept deposits and make loans or make an investment to derive a profit from the difference in the interest rates paid and charged, respectively. In India the banks are being segregated in different groups. Each group has their own benefits and limitations in operating in India. Each has their own dedicated target market. Few of them only work in rural sector while others in both rural as well as urban. Many even are only catering in cities.Some are of Indian origin and some are foreign players. India’s economy has been one of the stars of global economics in recent years. It has grown by more than 9% for three years running. The economy of India is as diverse as it is large, with a number of major sectors including manufacturing industries, agriculture, textiles and handicrafts, and services. Agriculture is a major component of the Indian economy, as over 66% of the I ndian population earns its livelihood from this area. Banking sector is considered as a booming sector in Indian economy recently.Banking is a vital system for developing economy for the nation. However, Indian banking system and economy has been facing various challenges and problems which have discussed in other parts of project. INDIAN BANKING SYSTEM Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades India's banking system has several outstanding achievements to its credit.The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth process. The government's r egular policy for Indian bank since 1969 has paid rich dividends with the nationalization of 14 major private banks of India. Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money.Today, he has a choice. Gone are days when the most efficient bank transferred money from one branch to other in two days. Now it is simple as instant messaging or dial a pizza. Money has become the order of the day. The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below: †¢Early phase from 1786 to 1969 of Indian Banks †¢Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms. New phase of Indian Banking System with the advent of Indian Financial ; Banking Sector Reforms after 1991. After 1991, under the chairmanship of M Narasimham, a committee wa s set up by his name which worked for the liberalization of banking practices. The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to customers. Phone banking and net banking is introduced. The entire system became more convenient and swift. Time is given more importance than money.This resulted that Indian banking is growing at an astonishing rate, with Assets expected to reach US$1 trillion by 2010. â€Å"The banking industry should focus on having a small number of large players that can compete globally and can achieve expected goals rather than having a large number of fragmented players. † KINDS OF BANKS Financial requirements in a modern economy are of a diverse nature, distinctive variety and large magnitude. Hence, different types of banks have been instituted to cater to the varying needs of the community.Banks in the organized sector may, however, be classified in to the following major forms: oComm ercial banks oCo-operative banks oSpecialized banks oCentral bank †¢COMMERCIAL BANKS Commercial banks are joint stock companies dealing in money and credit. In India, however there is a mixed banking system, prior to July 1969, all the commercial banks-73 scheduled and 26 non-scheduled banks, except the state bank of India and its subsidiaries-were under the control of private sector. On July 19, 1969, however, 14 major commercial banks with deposits of over 50 Corers were nationalized.In April 1980, another six commercial banks of high standing were taken over by the government. At present, there are 20 nationalized banks plus the state bank of India and its 7 subsidiaries constituting public sector banking which controls over 90 per cent of the banking business in the country. †¢CO-OPERATIVE BANKS Co-operative banks are a group of financial institutions organized under the provisions of the Co-operative societies Act of the states. The main objective of co-operative bank s is to provide cheap credits to their members.They are based on the principle of self-reliance and mutual co-operation. Co-operative banking system in India has the shape of a pyramid a three tier structure, constituted by: †¢SPECIALIZED BANKS There are specialized forms of banks catering to some special needs with this unique nature of activities. There are thus, oForeign exchange banks, oIndustrial banks, oDevelopment banks, oLand development banks, oExim bank. †¢CENTRAL BANK A central bank is the apex financial institution in the banking and financial system of a country.It is regarded as the highest monetary authority in the country. It acts as the leader of the money market. It supervises, control and regulates the activities of the commercial banks. It is a service oriented financial institution. India’s central bank is the Reserve Bank of India established in 1935. A central bank is usually state owned but it may also be a private organization. For instance, the Reserve Bank of India (RBI), was started as a shareholders’ organization in 1935, however, it was nationalized after independence, in 1949. It is free from parliamentary control.CHALLENGES FACED BY INDIAN BANKING INDUSTRY The banking industry in India is undergoing a major transformation due to changes in economic conditions and continuous deregulation. These multiple changes happening one after other has a ripple effect on a bank trying to graduate from completely regulated sellers market to completed deregulated customers market. oDEREGULATION This continuous deregulation has made the Banking market extremely competitive with greater autonomy, operational flexibility, and decontrolled interest rate and liberalized norms for foreign exchange.The deregulation of the industry coupled with decontrol in interest rates has led to entry of a number of players in the banking industry. At the same time reduced corporate credit off take thanks to sluggish economy has resulted in large number of competitors battling for the same pie. oNEW RULES As a result, the market place has been redefined with new rules of the game. Banks are transforming to universal banking, adding new channels with lucrative pricing and freebees to offer. Natural fall out of this has led to a series of innovative product offerings catering to various customer segments, specifically retail credit. EFFICIENCY This in turn has made it necessary to look for efficiencies in the business. Banks need to access low cost funds and simultaneously improve the efficiency. The banks are facing pricing pressure, squeeze on spread and have to give thrust on retail assets. oDIFFUSED CUSTOMER LOYALTY This will definitely impact Customer preferences, as they are bound to react to the value added offerings. Customers have become demanding and the loyalties are diffused. There are multiple choices; the wallet share is reduced per bank with demand on flexibility and customization.Given the relatively low switching costs; customer retention calls for customized service and hassle free, flawless service delivery. oMISALLIGNED MINDSET These changes are creating challenges, as employees are made to adapt to changing conditions. There is resistance to change from employees and the Seller market mindset is yet to be changed coupled with Fear of uncertainty and Control orientation. Acceptance of technology is slowly creeping in but the utilization is not maximized. oCOMPETENCE GAPPlacing the right skill at the right place will determine success. The competency gap needs to be addressed simultaneously otherwise there will be missed opportunities. The focus of people will be on doing work but not providing solutions, on escalating problems rather than solving them and on disposing customers instead of using the opportunity to cross sell. STRATEGIES OPTIONS WITH BANKS TO COPE WITH THOSE CHALLENGES Leading players in the industry have embarked on a series of strategic and tactical initiatives to sustain leadership.The major initiatives include: oInvesting in state of the art technology as the back bone of to ensure reliable service delivery oLeveraging the branch network and sales structure to mobilize low cost current and savings deposits oMaking aggressive forays in the retail advances segment of home and personal loans oImplementing organization wide initiatives involving people, process and technology to reduce the fixed costs and the cost per transaction oFocusing on fee based income to compensate for squeezed spread, (e. . CMS, trade services) oInnovating Products to capture customer ‘mind share’ to begin with and later the wallet share oImproving the asset quality as per Basel II norms INDIAN ECONOMY The Indian Economy is consistently posting robust growth numbers in all sectors leading to impressive growth in Indian GDP. The Indian economy has been stable and reliable in recent times, while in the last few years it’s experienced a positive up ward growth trend.A consistent 8-9% growth rate has been supported by a number of favorable economic indicators including a huge inflow of foreign funds, growing reserves in the foreign exchange sector, both an IT and real estate boom, and a flourishing capital market. All of these positive changes have resulted in establishing the Indian economy as one of the largest and fastest growing in the world. The process of globalization has been an integral part of the recent economic progress made by India.Globalization has played a major role in export-led growth, leading to the enlargement of the job market in India. As a new Indian middle class has developed around the wealth that the IT and BPO industries have brought to the country, a new consumer base has developed. International companies are also expanding their operations in India to service this massive growth opportunity. The same thing has followed by international banks that are entering in Indian market and pulling their hug e investments in Indian economy. This is helping to accelerate the growth of Indian economy.Economy can be studied from two points of views†¦ ?MICRO ECONOMIC POINT OF VIEW The branch of economics that analyzes the market behavior of individual consumers and firms in an attempt to understand the decision-making process of firms and households. It is concerned with the interaction between individual buyers and sellers and the factors that influence the choices made by buyers and sellers. In particular, microeconomics focuses on patterns of supply and demand and the determination of price and output in individual markets.Microeconomics looks at the smaller picture and focuses more on basic theories of supply and demand and how individual businesses decide how much of something to produce and how much to charge for it. ?MACRO ECONOMIC POINT OF VIEW It is a field of economics that studies the behavior of the aggregate economy. Macroeconomics examines economy-wide phenomena such as c hanges in unemployment, national income, rate of growth, gross domestic product, inflation and price levels. Macroeconomics looks at the big picture (hence â€Å"macro†). It focuses on the national economy as a whole and provides a basic knowledge of how things work in the business world.For example, people who study this branch of economics would be able to interpret the latest Gross Domestic Product figures or explain why a 6% rate of unemployment is not necessarily a bad thing. Thus, for an overall perspective of how the entire economy works, you need to have an understanding of economics at both the micro and macro levels. ECONOMIC SYSTEMS An economic system is loosely defined as country’s plan for its services, goods produced, and the exact way in which its economic plan is carried out. In general, there are three major types of economic systems prevailing around the world they are†¦ Market Economy oPlanned Economy oMixed Economy MARKET ECONOMY In a market ec onomy, national and state governments play a minor role. Instead, consumers and their buying decisions drive the economy. In this type of economic system, the assumptions of the market play a major role in deciding the right path for a country’s economic development. Market economies aim to reduce or eliminate entirely subsidies for a particular industry, the pre-determination of prices for different commodities, and the amount of regulation controlling different industrial sectors.The absence of central planning is one of the major features of this economic system. Market decisions are mainly dominated by supply and demand. The role of the government in a market economy is to simply make sure that the market is stable enough to carry out its economic activities properly. PLANNED ECONOMY A planned economy is also sometimes called a command economy. The most important aspect of this type of economy is that all major decisions related to the production, distribution, commodity and service prices, are all made by the government.The planned economy is government directed, and market forces have very little say in such an economy. This type of economy lacks the kind of flexibility that is present a market economy, and because of this, the planned economy reacts slower to changes in consumer needs and fluctuating patterns of supply and demand. On the other hand, a planned economy aims at using all available resources for developing production instead of allotting the resources for advertising or marketing. MIXED ECONOMY A mixed economy combines elements of both the planned and the market economies in one cohesive system.This means that certain features from both market and planned economic systems are taken to form this type of economy. This system prevails in many countries where neither the government nor the business entities control the economic activities of that country – both sectors play an important role in the economic decision-making of the country. In a mixed economy there is flexibility in some areas and government control in others. Mixed economies include both capitalist and socialist economic policies and often arise in societies that seek to balance a wide range of political and economic views. IMPORTANT BANKING AND ECONOMIC INDICATORS CASH RESERVE RATIO Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with RBI. If RBI decides to increase the percent of this, the available amount with the banks comes down. RBI is using this method (increase of CRR rate), to drain out the excessive money from the banks. The amount of which shall not be less than three per cent of the total of the Net Demand and Time Liabilities (NDTL) in India, on a fortnightly basis and RBI is empowered to increase the said rate of CRR to such higher rate not exceeding twenty percent of the Net Demand and Time Liabilities (NDTL) under the RBI Act, 1934. STATUTORY LIQUIDITY RATIO In terms of Section 24 (2-A) of the B. R. Act, 1949 all Scheduled Commercial Banks, in addition to the average daily balance which they are required to maintain in the form of†¦. oIn cash, Or oIn gold valued at a price not exceeding the current market price, Or oIn unencumbered approved securities valued at a price as specified by the RBI from time to time. ?REPO RATE Repo rate, also known as the official bank rate, is the discounted rate at which a central bank repurchases government securities.The central bank makes this transaction with commercial banks to reduce some of the short-term liquidity in the system. The repo rate is dependent on the level of money supply that the bank chooses to fix in the monetary scheme of things. Repo rate is short for repurchase rate. The entity borrowing the security is often referred to as the buyer, while the lender of the securities is referred to as the seller. The central bank has the power to lower the repo rates while expanding the money supply in the country. This enables th e banks to exchange their government security holdings for cash.In contrast, when the central bank decides to reduce the money supply, it implements a rise in the repo rates. At times, the central bank of the nation makes a decision regarding the money supply level and the repo rate is determined by the market. The securities that are being evaluated and sold are transacted at the current market price plus any interest that has accrued. When the sale is concluded, the securities are subsequently resold at a predetermined price. This price is comprised of the original market price and interest, and the pre-agreed interest rate, which is the repo rate. ?BANK RATEBank rate is referred to the rate of interest charged by premier banks on the loans and advances. Bank rate varies based on some defined conditions as laid down the governing authority of the banks. Bank rates are levied to control the money supply to and from the bank. From the consumer's point of view, bank rate ordinarily d enotes to the current rate of interest acquired from savings certificate of Deposit. It is most frequently used by the consumers who are concerned in mortgage Some commonest types of bank interest rates are as follows: oBank rate on CD, i. e. , on certificate of deposit Bank rate on the credit of a credit card or other kind of loan oBank rate on real estate loan ?INTERBANK RATE The rate of interest charged on short-term loans made between banks. Banks borrow and lend money in the interbank market in order to manage liquidity and meet the requirements placed on them. The interest rate charged depends on the availability of money in the market, on prevailing rates and on the specific terms of the contract, such as term length. Banks are required to hold an adequate amount of liquid assets, such as cash, to manage any potential withdrawals from clients.If a bank can't meet these liquidity requirements, it will need to borrow money in the interbank market to cover the shortfall. Some ba nks, on the other hand, have excess liquid assets above and beyond the liquidity requirements. These banks will lend money in the interbank market, receiving interest on the assets. There is a wide range of published interbank rates, including the LIBOR & MIBOR, which is set daily based on the average rates on loans made within the London interbank market & Mumbai Interbank Market. ?GROSS DOMESTIC PRODUCTThe monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory. GDP = C + G + I + NX Where: ?†C† is equal to all private consumption, or consumer spending, in a nation's economy. ?†G† is the sum of government spending. ?†I† is the sum of all the country's businesses spending on capital. ?† NX† is the nation's total net exports, calculated as total exports minus total imports. NX = Exports – Imports) GDP is commonly used as an indicator of the economic health of a country, as well as to gauge a country's standard of living. ?INFLATION Inflation can be defined as a rise in the general price level and therefore a fall in the value of money. Inflation occurs when the amount of buying power is higher than the output of goods and services. Inflation also occurs when the amount of money exceeds the amount of goods and services available. As to whether the fall in the value of money will affect the functions of money depends on the degree of the fall.Basically, refers to an increase in the supply of currency or credit relative to the availability of goods and services, resulting in higher prices. Therefore, inflation can be measured in terms of percentages. The percentage increase in the price index, as a rate per cent per unit of time, which is usually in years. The two basic price indexes are used when measuring inflation, the producer price index (PPI) and the consumer price index (CPI) which is also known as the cost of living index number. ?DEFLATION It is a condition of falling prices accompanied by a decreasing level of employment, output and income.Deflation is just the opposite of inflation. Deflation occurs when the total expenditure of the community is not equal to the existing prices. Consequently, the supply of money decreases and as a result prices fall. Deflation can also be brought about by direct contractions in spending, either in the form of a reduction in government spending, personal spending or investment spending. Deflation has often had the side effect of increasing unemployment in an economy, since the process often leads to a lower level of demand in the economy. ?DISINFLATIONWhen prices are falling due to anti-inflationary measures adopted by the authorities, with no corresponding decline in the existing level of employment, output and income, the result of this is disinflation. When acute inflation burdens an economy, disinflation is implemented as a cure. Disinflation is said to take place when deliberate attempts are made to curtail expenditure of all sorts to lower prices and money incomes for the benefit of the community. ?REFLATION Reflation is a situation of rising prices, which is deliberately undertaken to relieve a depression.Reflation is a means of motivating the economy to produce. This is achieved by increasing the supply of money or in some instances reducing taxes, which is the opposite of disinflation. Governments can use economic policies such as reducing taxes, changing the supply of money or adjusting the interest rates; which in turn motivates the country to increase their output. The situation is described as semi-inflation or reflation. ?STAGFLATION Stagflation is a stagnant economy that is combined with inflation. Basically, when prices are increasing the economy is de ceasing.Some economists believe that there are two main reasons for stagflation. Firstly, stagflation can occur when an economy is slowed by an unfavourable supply, such as an increase in the price of oil in an oil importing country, which tends to raise prices at the same time that it slows the economy by making production less profitable. In the 1970's inflation and recession occurred in different economies at the same time. Basically, what happened was that there was plenty of liquidity in the system and people were spending money as quickly as they got it because prices were going up quickly.This gave rise to the second reason for stagflation. ?FOREIGN INSTITUTIONAL INVESTMENTS Foreign Institutional Investors (FIIs), Non-Resident Indians (NRIs), and Persons of Indian Origin (PIOs) are allowed to invest in the primary and secondary capital markets in India through the portfolio investment scheme (PIS). Under this scheme, FIIs/NRIs can acquire shares/debentures of Indian companies through the stock exchanges in India. The ceiling for overall investment for FIIs is 24 per cent of the paid up capital of the Indian company and 10 per cent for NRIs/PIOs.The limit is 20 per cent of the paid up capital in the case of public sector banks, including the State Bank of India. ?FOREIGN EXCHANGE RESERVES Foreign exchange reserves (also called Forex reserves) in a strict sense are only the foreign currency deposits held by central banks and monetary authorities. However, the term in popular usage commonly includes foreign exchange and gold, SDRs and IMF reserve positions. This broader figure is more readily available, but it is more accurately termed official reserves or international reserves.These are assets of the central bank held in different reserve currencies, such as the dollar, euro and yen, and used to back its liabilities, e. g. the local currency issued, and the various bank reserves deposited with the central bank, by the government or financial institutions . Large reserves of foreign currency allow a government to manipulate exchange rates – usually to stabilize the foreign exchange rates to provide a more favorable economic environment. ROLE OF BANKS IN DEVELOPING OF ECONOMY A safe and sound financial sector is a prerequisite for sustained growth of any economy.Globalization, deregulation and advances in information technology in recent years have brought about significant changes in the operating environment for banks and other financial institutions. These institutions are faced with increased competitive pressures and changing customer demands. These, in turn, have engendered a rapid increase in product innovations and changes in business strategies. While these developments have enabled improvement in the efficiency of financial institutions, they have also posed some serious risks.Banks play a very useful and dynamic role in the economic life of every modern state. A study of the economic history of western country shows that without the evolution of commercial banks in the 18th and 19th centuries, the industrial revolution would not have taken place in Europe. The economic importance of commercial banks to developing countries may be viewed thus: oPromoting capital formation oEncouraging innovation oMonetsation oInfluence economic activity oFacilitator of monetary policy Above all view we can see in briefly, which are given below:PROMOTING CAPITAL FORMATION A developing economy needs a high rate of capital formation to accelerate the tempo of economic development, but the rate of capital formation depends upon the rate of saving. Unfortunately, in underdeveloped countries, saving is very low. Banks afford facilities for saving and, thus encourage the habits of thrift and industry in the community. They mobilize the ideal and dormant capital of the country and make it available for productive purposes. ENCOURAGING INNOVATION Innovation is another factor responsible for economic development.The entre preneur in innovation is largely dependent on the manner in which bank credit is allocated and utilized in the process of economic growth. Bank credit enables entrepreneurs to innovate and invest, and thus uplift economic activity and progress. MONETSATION Banks are the manufactures of money and they allow many to play its role freely in the economy. Banks monetize debts and also assist the backward subsistence sector of the rural economy by extending their branches in to the rural areas. They must be replaced by the modern commercial bank’s branches. INFLUENCE ECONOMIC ACTIVITYBanks are in a position to influence economic activity in a country by their influence on the rate interest. They can influence the rate of interest in the money market through its supply of funds. Banks may follow a cheap money policy with low interest rates which will tend to stimulate economic activity. FACILITATOR OF MONETARY POLICY Thus monetary policy of a country should be conductive to economic development. But a well-developed banking system is on essential pre-condition to the effective implementation of monetary policy. Under-developed countries cannot afford to ignore this fact.A fine, an efficient and comprehensive banking system is a crucial factor of the developmental process of economy. RESERVE BANK OF INDIA AS A REGULATORY INSTITUTION IN INDIAN ECONOMY The RBI was established under the Reserve Bank of India Act, 1934 on April 1, 1935 as a private shareholders' bank but since its nationalization in 1949, is fully owned by the Government of India. The Preamble of the Reserve Bank describes the basic functions as ‘to regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in India and generally, to operate the currency and credit system of the country to its advantage'.The twin objectives of monetary policy in India have evolved over the years as those of maintaining price stability and ensuring adequate flow of cred it to facilitate the growth process. The relative emphasis between the twin objectives is modulated as per the prevailing circumstances and is articulated in the policy statements by the Reserve Bank from time to time. Consideration of macro-economic and financial stability is also subsumed in the mandate. The Reserve Bank is also entrusted with the management of foreign exchange reserves (which include gold holding also), which are reflected in its balance sheet.While the Reserve Bank is essentially a monetary authority, its founding statute mandates it to be the manager of market borrowing of the Government of India and banker to the Government. The Reserve Bank's affairs are governed by a Central Board of Directors, consisting of fourteen non-executive, independent directors nominated by the Government, in addition to the Governor and up to four Deputy Governors. Besides, one Government official is also nominated on the Board who participates in the Board meetings but cannot vote . IMPORTANT FUNCTIONS PLAYED BY RESERVE BANK OF INDIA IN ECONOMY MAIN FUNCTIONS oMONITORY AUTHORITY The Reserve Bank of India formulates implements and monitors the monetary policy. Its main objective is maintaining price stability and ensuring adequate flow of credit to productive sectors. oREGULATOR AND SUPERVISOR OF FINANCIAL SYSTEM Prescribes broad parameters of banking operations within which the country’s banking and financial system functions. Their main objective is to maintain public confidence in the system, protect depositors’ interest and provide cost-effective banking services to the public. MANAGER OF EXCHANGE CONTROL The manager of the exchange control department manages the Foreign Exchange Management Act, 1999. Its main objective is to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India. oISSUER OF THE CURRENCY The person who is issuer issues and exchanges or destroys currency and co ins not fit for circulation. His main objective is to give the public adequate quantity of supplies of currency notes and coins and in good quality. oDEVELOPMENTAL ROLEThe reserve bank of India performs a wide range of promotional functions to support national objectives. The promotional functions are such as contests, coupons, maintaining good public relations, and many more†¦.. oRELATED FUNCTIONS There are also some of the relating functions to the above mentioned main functions. They are such as Banker to the Government, Banker to banks etc†¦. ?BANKER TO THE GOVERNMENT It performs merchant banking function for the central and the state governments; also acts as their banker. ?BANKER TO THE BANKS Maintains banking accounts of all scheduled banks. ?SUPERVISORY FUNCTIONSThe Reserve Bank act, 1934 and the Banking Regulation act, 1949 have given the RBI wide powers of supervision and control over commercial and co-operative banks, relating to licensing and establishments, br anch expansion, liquidity of their asset, management and methods of working, amalgamation, reconstruction, and liquidation. The RBI is authorized to carry out periodical inspections of banks and to call for returns and necessary information from them. The supervisory functions of the RBI have helped a great deal in improving the standard of banking in India to develop on sound lines and to improve the methods of their operation. PROMOTIONAL FUNCTIONS With economic growth assuming a new urgency since Independence, the range of the Reserve Bank’s functions has steadily widened. The bank now performs a variety of developmental and promotional functions, which, at one time were regarded as outside the normal scope of central banking. The RBI was asked to promote banking habit, extend banking facilities to rural and semi-urban areas, and establish and promote new specialized financing agencies. PROBLEMS FACED BY INDIAN ECONOMY Macro-economic environment in India has taken a seriou s turn since the beginning of the year.Unprecedented rise in crude prices, surge in inflation and continued strong growth in money supply (M3) have forced the government and RBI to take strong fiscal and monetary measures leading to liquidity tightening, significant rise in interest rates and slowdown in economic growth. Economic shocks are events which adversely affect the economy and the government’s macroeconomic objectives such as growth, inflation, unemployment and the balance of payments. CERTAIN PROBLEMS FACED BY INDIAN ECONOMY oFALL IN SAVINGS RATIO The savings ratio is the % of income that is saved not spent.A fall in the savings ratio implies that consumer spending is increasing; often this is financed through increased borrowing. EFFECTS OF FALL IN SAVINGS RATIO ?HIGHER LEVEL OF CONSUMPTION This results in increase in Aggregate Demand. The increase in AD will cause an increase in economic growth and lower unemployment. However, rising Aggregate Demand may cause inf lation. Inflation will occur when growth is faster than the long run trend rate. This is now a potential problem in the India. Inflation has recently gone above 12% ?BOOM AND BUST A fall in the savings ratio is usually accompanied by a rise in confidence.It is the rise in confidence which encourages borrowing and consumers to run down savings. Therefore, there is always a danger that a falling savings ratio can be a precursor to a boom and bust situation. ?ECONOMY MORE SENSITIVE TO INTEREST RATES With a fall in the savings ratio interest rate changes will have a bigger effect in reducing spending. This is because levels of borrowing are higher and therefore a rise in interest rates has a significant impact on increasing interest repayments. Also, higher rates will not be increasing incomes from savings as much. ?BALANCE OF PAYMENTWith higher levels of consumer spending, there will be an increase in imports. Therefore this will lead to deterioration in the current account. The curren t account deficit could put downward pressure on the exchange rate in the long term. However, some people argue a fall in the savings ratio is not a problem, but, it is just a reflection of strong economy and booming housing market, which increases scope for equity withdrawal. oINFLATION Inflation is posing a serious challenge to the economic growth of India. Since Jan’08 onwards, inflation in the country has surged by 8. 2% to hit a 13-year high of ~12%.M3 growth in the economy too continued to remain strong at 20% (in July’08), well above the RBI’s comfort level of 17%. The WPI inflation rate flared up during the period driven by significant increase in the prices of commodities, primary articles and manufactured products, even though very small part of global crude price increase has been passed on to the Indian consumers. oGLOBAL RECESSION It appears that Europe, Japan and the US are entering into recession. Falling house prices, crisis in the financial syst em, and lower confidence could lead to a sharp downturn, with the worst still to come.Many argue that India’s growth is not so dependent on growth in the West. However, the Indian stock markets have been hit by the global crisis. India’s growing service sector and manufacturing sector would be adversely impacted by a global downturn. oRISE IN CRUDE PRICES How global crude prices would behave probably has no easy answers; however we believe that the current challenging and uncertain macro-economic conditions does not lead Indian financials into a state of crisis. But continued rise in crude prices and its resultant impact on inflation, interest rates and government finances has the potential to do so.Hence, crude price remains the key risk to our positive stance on the Indian financials. In the last couple of months oil prices have surged by 45% from US$ 100 to US$ 145 (and now back to US$ 115). India currently imports 70% of its crude requirement, resulting in pressure on government coffers on back of rising crude prices. oDEPRICIATING INR Surge in crude prices has severely impacted current account deficit of the country. This coupled with the outflow of FII investments has resulted in INR to depreciate sharply against dollar further fueling inflation. IMPACT OF ECONOMIC PROBLEMS ON INDIAN FINANCIALSThe current macro-economic conditions are expected to result in oSLOWDOWN IN CREDIT GROWTH oIMPACT ON MARGINS OF BANKS oPREASURE ON CREDIT QUALITY †¢SLOWDOWN IN CREDIT GROWTH While the rise in interest rates should lead to a moderation in demand for credit, Indian banks too are exercising caution while lending. Credit growth of 18% in FY09E and 17% in FY10E vs. 22% in FY08. Risks and uncertainties in the system have increased given the higher crude and commodity prices and its inflationary impact. This would curtail consumption, which would impact economic growth adversely.Further higher rates will not only impact the profitability of Indian corp orate but also impact IRRs of various proposed capex projects. This coupled with elections next year could lead to some postponement of capex plans of corporate, leading to negative impact on demand for credit. Higher rates have particularly impacted retail loan growth. As can be seen in the exhibit below, retail loan growth has slowed down significantly from 26. 5% in FY07 to ~13% in FY08. SLR Ratio of the system has started rising since mid FY08 and currently stands at 28. %. Given the expected negative impact on credit growth. †¢IMPACT ON MARGINS OF BANKS During the past 18 months, CRR has increased by 400 bps to 9. 0% currently and RBI has also discontinued with interest payment on CRR balances. Every 50 bps hike in CRR generally negatively impacts margins by ~5 bps. Till June’08, most of the banks had restrained from hiking lending rates despite significant monetary tightening. However on account of recent measures by RBI, banks have resorted to hiking PLRs in July/ August by 50-150 bps to preserve their margins.In fact in an environment, where liquidity is tight, interest rates are at elevated levels and risk premiums have increased, the banks tend to regain the pricing power. This would not only help the banks to adequately price in risks but also help protect their margins. Apart from hiking PLRs, banks are also resorting to reprising (in fact right-pricing) the loans that were sanctioned well below PLRs. Significant portion of fixed rate loans would also get re-priced over the period of 12-18 months. †¢PRESSURE ON CREDIT QUALITY Higher lending rates are expected to impact credit quality for the banking system.The extent of the impact on credit quality would also be bank specific given the loan mix (retail vs. corporate), proportion of unsecured lending, credit profile of corporate loan book and industry wise exposure. Indian banks’ fundamentals are relatively resilient with better risk management systems, dramatically improved a sset quality, stronger recovery mechanisms (legal provisions) and with adequate capitalization and provisioning. Even Certain sectors (like real estate, airlines industry) might feel the stress due to the changing macro environment and rise in interest rates.Many companies where crude forms a key raw material component are expected to get hit more severely. Similarly, sectors like real estate and SMEs, which are interest rate sensitive, would face higher delinquencies if interest rates strengthen further by 100-200 bps. NECESSARY INITIATIVES TAKEN BY RBI & MINISTRY OF FINANCE TO TACKLE ECONOMIC PROBLEMS As most of economists feel that the most horrible problem which India is facing currently is inflation which has crossed 12%. To come out of these problems RBI and ministry of finance and other relevant government and regulatory entities are taking various initiatives which are as follows†¦ RBI MONITORY POLICY With the introduction of the Five year plans, the need for appropriat e adjustment in monetary and fiscal policies to suit the pace and pattern of planned development became imperative. The monitory policy since 1952 emphasized the twin aims of the economic policy of the government: oSpread up economic development in the country to raise national income and standard of living, and oTo control and reduce inflationary pressure in the economy. This policy of RBI since the First plan period was termed broadly as one of controlled expansion, i. e. a policy of â€Å"adequate financing of economic growth and at the same time the time ensuring reasonable price stability†. Expansion of currency and credit was essential to meet the increased demand for investment funds in an economy like India which had embarked on rapid economic development. Accordingly, RBI helped the economy to expand via expansion of money and credit and attempted to check in rise in prices by the use of selective controls. OBJECTIVES OF MONITORY POLICY ?PRICE STABILITY ?MONITORY TAR GETTING ?INTEREST RATE POLICY ?RESTRUCTURING OF MONEY MARKET ?REGULATION OF FOREIGN EXCHANGE MARKET WEAPONS OF MONITORY POLICYCentral banks generally use the three quantitative measures to control the volume of credit in an economy, namely: oRaising bank rates oOpen market operations and oVariable reserve ratio However, there are various limitations on the effective working of the quantitative measures of credit control adapted by the central banks and, to that extent, monetary measures to control inflation are weakened. In fact, in controlling inflation moderate monetary measures, by themselves, are relatively ineffective. On the other hand, drastic monetary measures are not good for the economic system because they may easily send the economy into a decline.In a developing economy there is always an increasing need for credit. Growth requires credit expansion but to check inflation, there is need to contract credit. In such a encounter, the best course is to resort to credit contr ol, restricting the flow of credit into the unproductive, inflation-infected sectors and speculative activities, and diversifying the flow of credit towards the most desirable needs of productive and growth-inducing sector. It should be noted that the impression that the rate of spending can be controlled rigorously by the contraction of credit or money supply is wrong in the context of modern economic societies.In modern community, tangible, wealth is typically represented by claims in the form of securities, bonds, etc. , or near moneys, as they are called. Such near moneys are highly liquid assets, and they are very close to being money. They increase the general liquidity of the economy. In these circumstances, it is not so simple to control the rate of spending or total outlays merely by controlling the quantity of money. Thus, there is no immediate and direct relationship between money supply and the price level, as is normally conceived by the traditional quantity theories.Wh en there is inflation in an economy, monetary restraints can, in conjunction with other measures, play a useful role in controlling inflation. †¢FISCAL POLICY Fiscal policy is another type of budgetary policy in relation to taxation, public borrowing, and public expenditure. To curve the effects of inflation and changes in the total expenditure, fiscal measures would have to be implemented which involves an increase in taxation and decrease in government spending. During inflationary periods the government is supposed to counteract an increase in private spending.It can be cleared noted that during a period of full employment inflation, the aggregate demand in relation to the limited supply of goods and services is reduced to the extent that government expenditures are shortened. Along with public expenditure, governments must simultaneously increase taxes that would effectively reduce private expenditure, in an effect to minimise inflationary pressures. It is known that when m ore taxes are imposed, the size of the disposable income diminishes, also the magnitude of the inflationary gap in regards to the availability of the supply of goods and services.In some instances, tax policy has been directed towards restricting demand without restricting level of production. For example, excise duties or sales tax on various commodities may take away the buying power from the consumer goods market without discouraging the level of production. However, some economists point out that this is not a correct way of combating inflation because it may lead to a regressive status within the economy. As a result, this may lead to a further rise in prices of goods and services, and inflation can spread from one sector of the economy to another and from one type of goods and services to another.Therefore, a reduction in public expenditure, and an increase in taxes produces a cash surplus in the budget. Keynes, however, suggested a programme of compulsory savings, such as def erred pay as an anti-inflationary measure. Deferred pay indicates that the consumer defers a part of his or her wages by buying savings bonds (which, of course, is a sort of public borrowing), which are redeemable after a particular period of time, this is sometimes called forced savings. Additionally, private savings have a strong disinflationary effect on the economy and an increase in these is an important measure for controlling inflation.Government policy should therefore, include devices for increasing savings. A strong savings drive reduces the spendable income of the consumers, without any harmful effects of any kind that are associated with higher taxation. Furthermore, the effects of a large deficit budget, which is mainly responsible for inflation, can be partially offset by covering the deficit through public borrowings. It should be noted that it is only government borrowing from non-bank lenders that has a disinflationary effect.In addition, public debt may be managed in such a way that the supply of money in the country may be controlled. The government should avoid paying back any of its past loans during inflationary periods, in order to prevent an increase in the circulation of money. Anti-inflationary debt management also includes cancellation of public debt held by the central bank out of a budgetary surplus. Fiscal policy by itself may not be very effective in combating inflation; therefore a combination of fiscal and monetary tools can work together in achieving the desired outcome. †¢DIRECT MEASURESDirect controls refer to the regulatory measures undertaken to convert an open inflation into a repressed one. Such regulatory measures involve the use of direct control on prices and rationing of scarce goods. The function of price control is a fix a legal ceiling, beyond which prices of particular goods may not increase. When ceiling prices are fixed and enforced, it means prices are not allowed to rise further and so, inflation is supp ressed. Under price control, producers cannot raise the price beyond a specified level, even though there may be a pressure of excessive demand forcing it up.In times of the severe scarcity of certain goods, particularly, food grains, government may have to enforce rationing, along with price control. The main function of rationing is to divert consumption from those commodities whose supply needs to be restricted for some special reasons; such as, to make the commodity more available to a larger number of households. Therefore, rationing becomes essential when necessities, such as food grains, are relatively scarce. Rationing has the effect of limiting the variety of quantity of goods available for the good cause of price stability and distributive impartiality.Another control measure that was suggested is the control of wages as it often becomes necessary in order to stop a wage-price spiral. During galloping inflation, it may be necessary to apply a wage-profit freeze. Ceilings o n wages and profits keep down disposable income and, therefore the total effective demand for goods and services. On the other hand, restrictions on imports may also help to increase supplies of essential commodities and ease the inflationary pressure. However, this is possible only to a limited extent, depending upon the balance of payments situation.Similarly, exports may also be reduced in an effort to increase the availability of the domestic supply of essential commodities so that inflation is eased. In general, monetary and fiscal controls may be used to repress excess demand but direct controls can be more useful when they are applied to specific scarcity areas. As a result, anti-inflationary policies should involve varied programmes and cannot exclusively depend on a particular type of measure only. RECENT INNOVATIONS IN INDIAN BANKING HDFC Bank’s ‘Net Safe’ card is a one-time use card with a limit that’s specified, taken from Tendon’s credi t or debit card.Even if Tandon fails to utilize the full amount within 24 hours of creating the card, the card simply dies and the unspent amount in the temporary card reverts to his original credit or debit card. Welcome to one of the myriad ways in which bankers have been trying to innovate. They’re bringing ATMs, cash and even foreign exchange to their customers’ doorsteps. Indeed, innovation has become the hottest banking game in town. Want to buy a house but don’t want to go through the hassles of haggling with brokers and the mounds of paperwork? Not to worry.Your bank will tackle all this. It’s ready to come every step of the way for you to buy a house. Standard Chartered, for instance, has property advisors to guide a customer through the entire process of selecting and buying a house. They also lend a hand with the cumbersome documentation formalities and the registration. Don’t fret if you’ve already bought your house or car â€⠀œ you can do other things with both. You can leverage your new house or car these days with banks like ICICI Bank and Stanchart ready to extend loans against either, till it’s about five years old.Loans are available to all car owners for almost all brands of cars manufactured in India that are up to five years old. Last month, Kotak Mahindra Bank introduced a variant of the sweep-in account. If the balance tops Rs 1. 5 lakh, the excess runs into Kotak’s liquid mutual fund. â€Å"Even if the money is there only for the weekend, a liquid fund can earn you a clean 4. 5 per cent per annum,† points out Shashi Arora, vice president, marketing, Kotak Mahindra Bank. That’s not a small gain considering that your current account does not pay you any interest.And if, meanwhile, you want to buy a big-ticket home theatre system, the minute you swipe your card the invested sum will return to your account. Banks are also attempting to reach out to residents of metropo litan cities where people are pressed for time (what with long commuting hours, traffic jams and both spouses working), beyond conventional banking hours. ICICI Bank, for example, introduced eight to eight banking hours, seven days of the week, in major cities. Not to be outdone, some of the other private banks have also done this too.HDFC Bank even has a 24-hour branch at Mumbai’s international airport. INDIAN BANKING IN 2010 The interplay between policy and regulatory interventions and management strategies will determine the performance of Indian banking over the next few years. Legislative actions will shape the regulatory stance through six key elements: industry structure and sector consolidation; freedom to deploy capital; regulatory coverage; corporate governance; labor reforms and human capital development; and support for creating industry utilities and service bureaus.Management success will be determined on three fronts: fundamentally upgrading organizational capa bility to stay in tune with the changing market; adopting value-creating M&A as an avenue for growth; and continually innovating to develop new business models to access untapped opportunities. Through these scenarios, we can paint a picture of the events and outcomes that will be the consequence of the actions of policy makers and bank managements. These actions will have dramatically different outcomes; the costs of inaction or insufficient action will be high. Specifically, at one extreme, the sector could account for over 7. per cent of GDP with over Rs.. 7,500 billion in market cap, while at the other it could account for just 3. 3 per cent of GDP with a market cap of Rs. 2,400 billion. Banking sector intermediation, as measured by total loans as a percentage of GDP, could grow marginally from its current levels of ~30 per cent to ~45 per cent or grow significantly to over 100 per cent of GDP. In all of this, the sector could generate employment to the tune of 1. 5 million comp ared to 0. 9 million. Today availability of capital would be a key factor — the banking sector will require as much as Rs. 00 billion (US$ 14 billion) in capital to fund growth in advances, non-performing loan (NPL) write offs and investments in IT and human capital up gradation to reach the high-performing scenario. Three scenarios can be defined to characterize these outcomes: oHIGH PERFORMANCE In this scenario, policy makers intervene only to the extent required to ensure system stability and protection of consumer interests, leaving managements free to drive far reaching changes. Changes in regulations and bank capabilities reduce intermediation costs leading to increased growth, innovation and productivity.Banking becomes an even greater driver of GDP growth and employment and large sections of the population gain access to quality banking products. Management is able to overhaul bank organizational structures, focus on industry consolidation and transform the banks into industry shapers. In this scenario we witness consolidation within public sector banks (PSBs) and within private sector banks. Foreign banks begin to be active in M&A, buying out some old private and newer private banks. Some M&A activity also begins to take place between private and public sector banks.As a result, foreign and new private banks grow at rates of 50 per cent, while PSBs improve their growth rate to 15 per cent. The share of the private sector banks (including through mergers with PSBs) increases to 35 per cent and that of foreign banks increases to 20 per cent of total sector assets. The share of banking sector value adds in GDP increases to over 7. 7 per cent, from current levels of 2. 5 per cent. Funding this dramatic growth will require as much as Rs. 600 billion in capital over the next few years. oEVOLUTION Policy makers adopt a pro-market stance but are cautious in liberalizing the industry.As a result of this, some constraints still exist. Processes to create highly efficient organizations have been initiated but most banks are still not best-in-class operators. Thus, while the sector emerges as an important driver of the economy and wealth in 2010, it has still not come of age in comparison to developed markets. Significant changes are still required in policy and regulation and in capability-building measures, especially by public sector and old private sector banks. In this scenario, M&A activity is driven primarily by new private banks, which take over some old private banks and also merge among themselves.As a result, growth of these banks increases to 35 per cent. Foreign banks also grow faster at 30 per cent due to a relaxation of some regulations. The share of private sector banks increases to 30 per cent of total sector assets, from current levels of 18 per cent, while that of foreign banks increases to over 12 per cent of total assets. The share of banking sector value adds to GDP increases to over 4. 7 per cent. oSTAGNATION I n this scenario, policy makers intervene to set restrictive conditions and management is unable to execute the changes needed to enhance returns to shareholders and provide quality products and services to customers.As a result, growth and productivity levels are low and the banking sector is unable to support a fast-growing economy. This scenario sees limited consolidation in the sector and most banks remain sub-scale. New private sector banks continue on their growth trajectory of 25 per cent. There is a slowdown in PSB and old private sector bank growth. The share of foreign banks remains at 7 per cent of total assets. Banking sector value adds meanwhile, is only 3. 3 per cent of GDP. oNEED TO CREATE A MARKET DRIVEN BANKING SECTOR WITH ADEQUATE FOCUS ON SOCIAL DEVELOPMENTThe term â€Å"policy makers†, refers to the Ministry of Finance and the RBI and includes the other relevant government and regulatory entities for the banking sector. The coordinated efforts between the v arious entities are required to enable positive action. This will spur on the performance of the sector. The policy makers need to make coordinated efforts on six fronts: †¢Help shape a superior industry structure in a phased manner through â€Å"managed consolidation† and by enabling capital availability.This would create 3-4 global sized banks controlling 35-45 per cent of the market in India; 6-8 national banks controlling 20-25 per cent of the market; 4-6 foreign banks with 15-20 per cent share in the market, and the rest being specialist players (geographical or product/ segment focused). †¢Focus strongly on â€Å"social development† by moving away from universal directed norms to an explicit incentive-driven framework by introducing credit guarantees and market subsidies to encourage leading public sector, private and foreign players to leverage technology to innovate and profitably provide banking services to lower income and rural markets. Create a un ified regulator, distinct from the central bank of the country, in a phased manner to overcome supervisory difficulties and reduce compliance costs. †¢Improve corporate governance primarily by increasing board independence and accountability. †¢Accelerate the creation of world class supporting infrastructure (e. g. , payments, asset reconstruction companies (ARCs), credit bureaus, back-office utilities) to help the banking sector focus on core activities. †¢Enable labor reforms, focusing on enriching human capital, to help public sector and old private banks become competitive. NEED FOR DECISIVE ACTION BY BANK MANAGEMENT Management imperatives will differ by bank. However, there will be common themes across classes of banks: †¢PSBs need to fundamentally strengthen institutional skill levels especially in sales and mar marketing, service operations, risk management and the overall organizational performance ethic. The last, i. e. , strengthening human capital will be the single biggest challenge. †¢Old private sector banks also have the need to fundamentally strengthen skill levels.However, even more imperative is their need to examine their participation in the Indian banking sector and their ability to remain independent in the light of the discontinuities in the sector. †¢New private banks could reach the next level of their growth in the Indian banking sector by continuing to innovate and develop differentiated business models to profitably serve segments like the rural/low income and affluent/ HNI segments; actively adopting acquisitions as a means to grow and reaching the next level of performance in their service platforms.Attracting, developing and retaining more leadership capacity would be key to achieving this and would pose the biggest challenge. †¢Foreign banks committed to making a play in India will need to adopt alternative approaches to win the â€Å"race for the customer† and build a value-creating cus tomer franchise in advance of regulations potentially opening up post 2009. At the same time, they should stay in the game for potential acquisition opportunities as and when they appear in the near term. Maintaining a fundamentally long-term value-creation mindset will be their greatest challenge.The extent to which Indian policy makers and bank managements develop and execute such a clear and complementary agenda to tackle emerging discontinuities will lay the foundations for a high-performing sector in 2010. CONCLUSION We can conclude that the financial sector is a nerve system of Indian economy. Banking plays an important role in development of economy. For steady growth in economy innovations and development in financial sector is very important. Economy of any country faces lots of challenges and problems. To tackle those problems financial sector plays a vital role.The financial sector makes the economy efficient to the extent where it can rival other developed economies in t he world. Financial sector also faces lots of problems but it should develop certain strategies to come out of these problems which is very important for healthy growth of economy. BIBLIOGRAPHY ?FINANCIAL SRVICES AND MARKET GORDAN AND NATRAJAN ?INDIAN BANKING SYSTEM V. K. BHALLA ?INTRODUC TION TO ECONOMIC ANALYSIS R. PRESTON MCAFEE ?MONEY, BANKING, INTERNATIONAL TRADE AND PUBLIC FINANCE D. M. MITHANI ?BANKING AND PRACTICE P. N. VARSHNEW ?MONEYCONTROL. COM ?MONEYPORE. COM ?RBI. ORG. IN