Thursday, January 30, 2020

Consider the theme in Of mice and men Essay Example for Free

Consider the theme in Of mice and men Essay * The book Of Mice and Men was set in the time of the great depression of the 1930s in California in a place called Soledad. Men travelled around looking for any work they could find, they had to leave families and homes just to make money. Even firms and companies went bankrupt, these were depressing and desperate times, no hope and no future. * During this period of time there was a depression in America. Unemployment was high, so men moved from ranch to ranch looking for work, never staying in one place long enough to firm any real relationships, so this was a very lonely existence. * John Steinbecks inspiration from came from him at an earlier age working as a migrant farm worker and so he understood completely about the conditions and life around him so he could really create an atmospheric story. * It is based on two men, George and Lennie, who travelled from ranch to ranch. George is a small and fairly intelligent man while Lennie is a large man of very little intelligence. They had travelled together for a long time. * In my opinion, the most obvious point made throughout the book about the world of migrant workers is that it is lonely. George tells that guys like usare the loneliest guys in the world. They got no family. They dont belong no place. This is also shown when Slim comments that he hardly never seen two guys travel together Most migrant workers travel on their own and this is why George and Lennie face some fairly intrusive questions from their new boss when they first arrive at the ranch. This boss even finds it so unusual that he asks George, referring to Lennie, what stake you got in this guy?. He also again refers to this being unusual by saying I never seen one guy take so much trouble for another guy. * They are many characters in the novel that are also lonely and this is due to sexism, ageism, but mainly racism. One perfect example is CrooksCrooks, the black stable buck is forever being picked on by the other men at the ranch, mostly because of his colour. In the time in which the book was set, black people in America were thought of as lower than white people. At the ranch, Crooks cannot live in the bunk house with all the other men, but he has to sleep in the harness room, at the back of the barn. Crooks is given no privacy, and gets quite cross because he is not allowed to enter the bunk-house but the other men can just walk into his room. In the book he says to Lennie, Youve no right to come into my room, nobody got any right in here but me. * Another reason is because of your age. Candy is lonely because he is old, and is different from the other hands. His only comfort is his old dog, which keeps him company and reminds him of days when he was young and whole.He has no relatives, and once his dog is killed is totally alone. He eagerly clutches at the idea of buying a farm with George and Lennie, but of course this all comes to nothing.Candys disappointment is expressed in the bitter words he utters to the body of Curleys wife, whom he blames for spoiling his dream. Paragraph 1 * George is a kind man. He travels with Lennie and helps him to survive although Lennie is more of a burden than a help, and creates many problems for him. He is also friendly, and almost immediately makes friends with Candy, Carlson, Slim, and the other ranch hands.He has matured a lot since the incident he relates to Slim where he made Lennie jump into a river just for fun. He realises that Lennie depends on him, and needs him to survive.George often insults Lennie and gives him hell, but he doesnt really mean it. Although he often talks about how well off he could be without Lennie he secretly doesnt want Lennie to leave, and when Lennie offers to do so in the first chapter, George virtually pleads with him to stay, Ive got you an youve got me. This is because George also depends on Lennie to a certain extent for his unconditional friendship. George is intelligent, as Slim points out in chapter three, but also modest in denying being smart. He expresses his desire to be different from other ranch hands who merely work for a month and then spend all of their money, but also realistically realises that his dream of owning a house with Lennie (or anyone else) is unlikely to ever come true. Overall, George is an intelligent and kind character. He is thoughtful enough to realise that the best thing for Lennie is to shoot him, for the alternatives are even worse, and compassionate enough to kill Lennie himself. * Lennie is a massive, extremely strong man, who has no living relatives. He travels about the country searching for work with his companion, George. Lennies Aunt Clara had asked George to take care of Lennie if she ever died. The most obvious feature of Lennies character is that he seems retarded. He is a man who has the mind of a child. Slim is one of the first characters to notice this, remarking that Lennie is Jes like a kid and Curleys wife also comments on how he is Jus like a big baby. Lennie doesnt know his own strength, and this is one of the things which lead to his eventual downfall. He realises that he is, strong as a bull, but he cant judge how much force to use for certain actions. That is why he kills his pets, when he only intends to pet them and play with them. It is this inability to judge his strength, combined with his desire to pet things and Curleys wifes desire to be petted and admired which leads to Lennies inevitable death. The ability to judge ones own strength is one of the first signs of maturity, and it is important that Lennie doesnt have this ability. Despite the major flaws in his character he is amiable and friendly , and doesnt do any of the bad things he does on purpose.He has a poor memory, and has to repeat things to himself many times to remember them. Even then, he still forgets them. He has a blind faith in George, trusting in him to protect and look after his welfare. For example, remember the incident George describes to Slim when he told Lennie to jump in the river and Lennie obeyed, without a thought to his own well being. This illustrates Lennies trust in George, and also his immaturity.However, it must be noted that Lennie can still be quite crafty, as when he cunningly persuades George to tell him the story about the rabbits by threatening to leave him. Paragraph 2 * Because of Lennies handicap George has established a personality around his companion to make it easier to live around him. George has found a way of coping with Lennie which is to shout at him. God a mighty, if I was alone I could live so easy. He supports him in the way he needs although when he is angry he does criticize him As dum as a horse. * George thinks of Lennie as a companion as he doesnt have any family. On the other hand he finds him as a pain. Lennie feel the same way to a certain extent but also fears George as he is in control and orders and protects Lennie. They travel together searching for work on ranches and so never settle, and so dont establish true friendships with others, but since they have each other they seem secure, but Lennie gets into a lot of trouble and so needs George so really George doesnt have time for himself, which is why they do almost everything together. * Others see this relationship as different:- Slim comments Aint many guys travel around toghther.Maybe everbody in the whole damn world is scared of each other. George and Lennie are different as Lennie says I got you to look after me, and you got me to look after you * Dreams are significant when considering how these men as one of the ways in which the characters combat the loneliness and hopelessness of their existence. For example the dream farm, a dream shared at first only by George and Lennie, later spreads to include Candy and Crooks, as they are all desperate to escape their lonely lives Crooks reveals that it is the favourite dream of the itinerant ranch hands: Seems like ever guy got land in his head. It is a powerful dream, however, and even Crooks falls for this, for a short time.To Lennie, the dream is a cure for disappointment and loneliness, and he often asks George to recite the description of the farm to him. Paragraph 4 * Crooks is an even lonelier character than Candy, because not only is he old and a cripple, like Candy, but he is also black. Most of the men have a lot of prejudice against Crooks, referring to him with derogatory terms such as nigger. (Prejudice around slavery wasnt rare) * He lives in the shed at the other end of the ranch, isolated from the rest of the workers there. * Crooks is a victim. We are told by Candy that the Boss takes his anger out on Crooks, though Crooks does nothing wrong. * Crooks spends his time alone reading and is a fairly knowledgeable person, as he owns a copy of the California civil code for 1905 He also plays horseshoes until dark. This shows us that Crooks is interested in reading as is most likely one of the smartest of the crowd. This also suggests that he has found reading as an escape route from the terrible world around him. * Crooks reveals that it is the favourite dream of the itinerant ranch hands: * As a result of the discrimination against him, Crooks has become bitter and cynical. This is why when Lennie and Candy tell him about their plan to buy a house he reacts with scorn and disbelief. Seems like ever guy got land in his head. It is a powerful dream, however, and even the cynical Crooks falls under its spell for a short time. Paragraph 5 * Curleys wife is described as having full rouged lips and wide spaced eyes, heavily made up. Her fingernails painted and her hair hung in little rolled clusters. * Most of the ranch hands except for Slim brand Curleys wife as tart. In fact, she is portrayed as such whenever she appears, obviously playing up to and teasing the men. We can definitely say that she is lonely. John Steinbeck illustrates how lonely Curleys wife is when she says I never get to talk to nobody. I get awful lonely She says so several times, and that is to be expected since she is stuck on a ranch with men who dislike her and rarely talk to her, as they fear getting into any sort of trouble with her husband Curley, stay away from her. However, she attempts to overcome her loneliness in the wrong way. George immediately realises that she means trouble when she first turns up in the bunkhouse, and it is hardly surprising that her actions lead her new husband to be fiercely jealous. She is so cruel because of her unhappiness, her isolation and the failure of her dreams. She dreamt of being in the movies or even in a show. She is disappointed and marries Curley to spite her mother only to find out he aint a nice fella. She wishes she could have made something of her life. She walks around the ranch, dressed inappropriately and seductively. and she has only been married a couple of weeks. She admits to Lennie that she doesnt like her husband and regrets marrying him. She seems to be of limited intelligence, as this shows her how desperate she is to escape. It is partly her desire to be petted and admired which leads her to allow Lennie to stroke her hair, which in turn leads to her death at Lennies hands. She is only ever known as Curleys wife which indicates that the author viewed her as a possession of Curleys rather than a human being. I pity her as she made a mistake into leading herself into these problems with Curley and this is making her bored ill. Paragraph 6 * The next afternoon, Lennie is in the barn. All of the other men are outside playing a game of horseshoes, and Lennies only company is his dead puppy. Lennie had accidentally killed it. He fears that George will not let him tend and feed the rabbits if George knows that he killed the puppy. While Lennie wonders what to do, Curleys wife appears. She tries to get Lennie to talk to her, but Lennie is reluctant, since George had threatened to forbid him from tending his rabbits if Lennie ever did so. When she directs Lennies attention to his puppy, though, Lennie forgets about not talking to her. He explains everything to her. Curleys wife listens sympathetically, and she tells Lennie about her aspirations of being an actress, and how she believes her mother deliberately thwarted her plans. She becomes angered by Lennies continual references to rabbits, and asks him what his attraction to them is. Lennie explains that he likes to touch and pet soft things, like rabbit fur. * Curleys wife allows Lennie to stroke her hair, but panics when he wont let go. She begins to struggle and scream, and Lennie, also in a state of panic, shakes her to make her stop saying, I dont want you to yell. You gonna get me in trouble jus like George says you will, and he covered her rouged lipped mouth with his large palms. She continued to scream and struggle and now the fully nervous Lennie shouted angrily at her, Dont you go yellin , and shook her; and her body flopped like a fish he shakes her so violently that her neck broke and she died instantly. Lennie knows that he has done another bad thing and remembers that George told him to go and hide in the brush down by the river, so he quickly runs there. Sometime later, Candy enters the barn and discovers the body of Curleys wife. He runs and fetches George. George realises what has happened, and says that he has to tell the others. Candy protests, rightly pointing out that Curley would deliver no mercy to anyone who had killed his wife. Candy is in favour of letting Lennie escape. He asks George if it is still possible to buy the house, but his dreams are shattered when George says it isnt. When George tells the labourers the news, they all go into a frenzy, and seem affected by blood lust. Curley is furious and vows to kill Lennie. Carlson rushes off to get his gun, and even Whit wants to join in the hunt. Carlson reports that his gun has been stolen, and everyone thinks that Lennie is responsible. George begs Curley to have mercy on his companion, but Curley says he cant because Lennie has a gun. All of the men run off except for Candy, who lies down in despair. * The relationship between George, Lennie and Candy was now destroyed. * This relates to the theme of dreams as they couldnt get their own place and so their dream had crumbled as well. Paragraph 7 * Loneliness affects many of the characters, and Steinbeck seems to show that it is a natural and inevitable result of the kind of life they are forced to lead. The itinerant workers are caught in a trap of loneliness they never stay in one place long enough to form permanent relationships. Even if such relationships existed, they would probably be destroyed by the demands of the itinerant life. Candy is lonely because he is old, and is different from the other hands. His only comfort is his old dog, which keeps him company and reminds him of days when he was young and whole. He has no relatives, and once his dog is killed is totally alone. He eagerly clutches at the idea of buying a farm with George and Lennie, but of course this all comes to nothing. Candys disappointment is expressed in the bitter words he utters to the body of Curleys wife, whom he blames for spoiling his dream. George is also caught in the trap of loneliness. Just as Candy has his dog for company, George has Lennie (who is often described in animal-like terms). Continuing the parallel, George too is left completely alone when Lennie is killed. The dream farm is his idea, and he says Wed belong there no more runnin around the country. Another lonely character is Curleys wife. Newly married and in a strange place, she is forbidden by Curley to talk to anyone but him. To counter this, she constantly approaches the ranch hands on the excuse of looking for Curley. The only result is that the men regard her as a slut, and Curley becomes even more intensely jealous. Finally, her loneliness leads to her death as she makes the serious error of trying to overcome it by playing the tease with Lennie. Curley himself is lonely. His new wife hates him as do all the ranch hands who despise him for his cowardice. He has married in an attempt to overcome his loneliness, but has blindly chosen a wife totally inappropriate for the kind of life he leads. His feelings are all channelled into aggressive behaviour which further isolates his wife and leads to the incident with Lennie where his hand is crushed. Crooks is another who is isolated because he is different. He copes with it by keeping a distance between himself and the other hands. When he does allow himself to be drawn into the dream of working on George and Lennies dream farm, he is immediately shut out by Georges anger. * The conclusion, in my opinion is that people are brought together though loneliness and separated as they grow hostile (Crooks). It is like an endless game which has to be played by someone before someone gets eager and makes it worse by instigating. This is fatewhat will happen will happen. Just like a game .. someone always wins..and someone always loses..!

Wednesday, January 22, 2020

Three Lonely Outcasts :: Free Essay Writer

Three Lonely Outcasts In Of Mice and Men by John Steinbeck almost all of the characters are ranch hands and they are solitary wanderers. They live very lonely, solitary lives, drifting from one ranch to another. They don?t make many friends and they don?t make much money. There are three characters on the ranch who are the lonliest of the lonely because they are also outcasts or misfits who don?t fit in with what is considered ?normal? by the other ranch hands. Lennie is an outcast because he is retarded, Crooks is an outcast because he is black, and Curley?s wife is an outcast because she is a woman. These three outcasts look for companionship throughout the novel. First, Lennie is a lonely outcast because he is retarded. One of the reasons he doesn?t fit in with the other ranch hands is because he doesn?t always understand what people are talking about. He doesn?t even always understand George. Lennie admits this when Crooks says to him, ?Sometimes he talks and and you don?t know what the hell he?s talkin? about.? (Steinbeck,77). But Lennie always needs companionship. He is never alone, even if he has a dead mouse or a puppy with him. George would sometimes punish Lenny by not letting him tend to the rabbits on the ranch. And Lennie?s biggest fear is of being abandoned by George: He won?t do it,? Lennie cried. ?George wouldn?t do nothing like that. I been with George a long time. He?ll come back tonight But the doubt was too much for him.? (Steinbeck,78). The second lonely outcast is Curley?s wife. The other ranch hands stay away from her because she is a woman and because she is the wife of the boss? son. Also, even though her husband is very jealous, she is so lonely that she tries to get attention from the ranch hands, which makes Curley even angrier and more jealous. She is like the outcast of the outcasts. One night, when everyone else is away from the ranch, Lennie and Candy are in Crooks? room. Even though it is just the three ?. . . weak ones here? (Steinbeck,84), when Curley?s wife is lonely and wants to join them, they won?t let her: ?Maybe you better go along to your own house now.

Tuesday, January 14, 2020

Commercial Banking

Assignment 1 Executive Summary The purpose of this report is to evaluate the performance of both Hong Leong Bank and its peer bank RHB Bank for the financial year ended in 2010. The DuPont model is used to provide the information on the bank’s liquidity, profitability, efficiency and leverage status that allows financial analyst to evaluate on the performance of the bank as a result of the changes of these factors. A trend comparison for year 2010, 2009 and 2008 is conducted and evaluated its respective ratios and other financial data.The peer comparison of financial ratios between RHB Bank & Hong Leong Bank is evaluated and analysed to see which bank performs better in 2010. The other key ratios are also calculated in for deep analysis on to see how well these two banks in Malaysia perform in 2010. In addition, its credit risk that includes the risk management and its policy of both banks is then evaluated and compared to see which bank manages its credit risk properly.Fi nally, this report provides an overview of the performance of both RHB Bank and Hong Leong Bank for the financial year ended in 2010 and conclude which bank perform better in terms of various financial ration and management of credit risk. II II Assignment 1 Part A: Bank Performance Question 1: Dupont Model: a. Dopont Model: The DuPont model analysis is a common form of financial statement analysis and this model provides information on the bank’s liquidity, profitability, efficiency and leverage status that allows financial analyst to evaluate on the performance of the firm as a result of changes in one or more of these actors (Milbourn & Haight, 2005). According to Narayanan (2010), the DuPont model provides a starting point to determine the strength and weakness of the firm. It is also a very powerful financial tool to assist financial analyst, shareholders, investors and bankers in understanding the profitability of the firm and a tool that evaluate the firm’s financial statements by comparing the relationships within the income statement and balance sheet, or between the two statements. (Milbourn & Haight, 2005). The DuPont Model starts with the return of equity (ROE).The ROE is a strong measure on how well the management of the bank creates value to the shareholders (Pinsent, 2010). It is also a good starting point in the analysis of a bank’s financial condition. ROE is calculated by dividing the net income by total equity (Gup, Avram, Beal, Lambert & Kolari, 2007). The formula is as follows. ROE= Net incomeEquity According to Gup et at, (2007), the ROE ratio is equal to the Return of Assets (ROA) ratio times the Leverage multiplier that shows the dollar amount of assets that are financed by each dollar of the equity. The leverage multiplier is one indicator of financial leverage.ROE=ROA x Leverage Multiplier Net IncomeEquity = Net IncomeTotal Assets x Total AssetsEquity Leverage multiplier shows the extent to which the b ank relies on debt financing. The higher the leverage multiplier, the more debt the bank is carrying. Leverage Multiplier= Total AssetsEquity The Return of Assets (ROA) measures the bank profits as a percent of its assets and also measures the ability of the firm to use the real financial resources of the bank to generate revenue. It is commonly used to evaluate bank management (Gup et al, 2007). ROA is calculated by dividing net income y total assets. ROA= Net IncomeTotal Assets In the DuPont model analysis, the ROA is expended into another equation: Net IncomeTotal Assets = RevenueTotal Assets x Net IncomeRevenue Thus the DuPont model translates the ROA equation into the following: ROA=Asset Utilisation x Net Profit Margin The net margin ratio shows how much profit the bank makes for every $ 1. 00 it generates from the revenue. Generally, the higher the ratio, the better the net margin. In order to obtain more revenue, most banks will want to reduce the net income to achieve a hig her net margin ratio.Net Margin= Net IncomeRevenue The asset utilisation shows the amount of income the bank generated for every dollar worth of the assets available. This shows the bank’s efficiency in utilising the assets. Basically, the higher the asset turnover, the better the firm use the assets. Asset Turnover= RevenueTotal Assets In order for the bank to increase the ROE, banks need to increase their credit risk; this can be done by providing more loans to customers and subsequently, the bank will earn more income. This will in turn increase the ROA and the same time increases the ROE.Limitations of the Dupont model analysis: * It is based on accounting numbers, which are basically not reliable. * it does not include the Cost of Capital. * Garbage in, garbage out. Assumptions of the DuPont method: * Accounting numbers are reliable. b. Dopont Model Analysis: i. & ii. Trend Comparison of Hong Leong and RHB (2008, 2009 & 2010): Hong Leong Bank’s data: | 201 0| 2009| 2008| | RM’000| RM’000| RM’000| Revenue| | | | Interest income| 2,592,586| 2,937,002| 3,064,785| Non-interest income| 506,979| 511,537| 501,067| Total| 3,099,565| 3,448,539| 3,565,852| | | | | Operating costs| | | |Interest expense| 1,209,792| 1,579,883| 1,688,293| Non-interest expense| 831,139| 806,030| 786,194| Total| 2,040,931| 2,385,913| 2,474,487| | | | | Net profit| 767,817| 659,678| 838,874| Total assets| 77,730,208| 70,732,513| 69,992,756| Equity| 5,815,063| 5,319,288| 4,923,133| RHB Bank’s Data | 2010| | RM’000| Revenue| | Interest income| 4,530,637| Non-interest income| 722,818| Total| 5,253,455| Operating Cost| | Interest Expense| 1,811,153| Non-interest Expense| 1,302,007| Total| 3,113,160| | | Net profit| 1,294,437| Total assets| 105,179,231| Equity| 8,397,474| Dupont Model of Hong Leong Bank 2010| 2009| 2008| Return On Equity: Net incomeEquity| RM767,817,000RM5,815,063,000= 13. 20%| RM659,678,000RM5,319,288,000= 12. 40%| RM83 8,874,000RM4,923,133,000= 17. 04%| Leverage Multiplier:Total AssetsEquity| RM77,730,208,000RM5,815,063,000=13. 37times| RM70,732,513,000RM5,319,288,000= 13. 30times| RM69,992,756,000RM4,923,133,000= 14. 22times| Return On Assets:Net IncomeTotal Assets| RM767,817,000RM77,730,208,000= 0. 99%| RM659,678,000RM70,732,513,000= 0. 93%| RM838,874,000RM69,992,756,000= 1. 20%| Asset Utilization:RevenueTotal Assets| RM3,099,565,000RM77,730,208,000= 3. 9%| RM3,448,539,000RM70,732,513,000= 4. 88%| RM3,565,852,000RM69,992,756,000= 5. 10%| Net margin:Net incomerevenue| RM767,817,000RM3,099,565,000= 24. 77%| RM659,678,000RM3,448,539,000= 19. 13%| RM838,874,000RM3,565,852,000= 23. 53%| Dupont Model of RHB Bank | 2010| Return On Equity: Net incomeEquity| RM1,294,437,000RM8,397,474,000=15. 41%|Leverage Multiplier:Total AssetsEquity| RM105,179,231,000RM8,397,474,000=12. 53times| Return On Assets:Net IncomeTotal Assets| RM1,294,437,000RM105,179,231,000=1. 23%| Asset Utilization:RevenueTotal Assets| RM5, 253,455,000RM105,179,231,000=4. 9%| Net margin:Net incomerevenue| RM1,294,437,000RM5,253,455,000=24. 64%| c. Analysis and Discussion: Trend comparison of Hong Leong Bank Ratio| 2010| 2009| 2008| Net margin| 24. 77%| 19. 13%| 23. 53%| Asset utilisation| 3. 99%| 4. 88%| 5. 10%| Return on assets| 0. 99%| 0. 93%| 1. 20%| Leverage multiplier| 13. 37times| 13. 30times| 14. 22times| Return on equity| 13. 20%| 12. 40%| 17. 04%| Hong Leong Bank’s net margin is higher in year 2010 (24. 77%) compared to the year 2009 (19. 13%) and year 2008 (23. 53%). It means that operating costs are relatively lower in year 2010 compared to year 2009 and year 2008.Operating costs in the year 2010, 2009 and 2008 are RM2,040,931,000, RM3,448,539,000 and RM2,474,487,000 respectively. This indicates that operating costs are well controlled by Hong Leong Bank in 2010 compared to 2009 and 2008. Thus this shows that the bank run their operations effectively in 2010 that increased its profitability. Hong Leon g Bank’s asset utilisation is lower in year 2010 (3. 99%) compared to the year 2009 (4. 88%) and 2008 (5. 10%). It decreased constantly from year 2008 to 2010. The decline in the figures shows that beginning in the year of 2009, the bank did not utilise much of its assets to generate more revenue.Therefore revenue was decreasing from 2008 to 2009. Revenue for the year 2010, 2009 and 2008 are RM3,099,565,000,RM3,448,539,000 and RM3,565,852,000. This shows that the bank well utilised the assets to generate revenue in 2008 compared to 2010. Hong Leong Bank’s return on assets is lower in year 2010 (0. 99%) compared to the year 2009 (0. 93%) and 2008 (1. 20%). This shows that Hong Leong Bank did not do well in managing and utilising its asset base in 2010. Hong Leong Bank’s leverage multiplier decreased from the year 2008 (14. 22times) to year 2009 (13. 30times) and increased back in year 2010(13. 7times).This implies that Hong Leong Bank does not depend too much on debt financing in their activities and carried less debt in their operations in 2009 compared to year 2010 and 2008. Thus, Hong Leong Bank was exposed to more risk in 2008 compared to year 2010. Hong Leong Bank’s return on equity decreased from year 2008 (17. 04%) compared to year 2009 (12. 40%) and increased back in year 2010 (13. 20%). This implies that it did not manage and utilise its equity base and therefore the investors did not get a better return from the Hong Leong Bank in 2010.Overall, Hong Leong Bank performance on profitability was better in 2008 compared to the year 2009 and 2010. Peer comparison Ratio| Hong Leong Bank| RHB Bank| Net margin| 24. 77%| 24. 64%| Asset utilisation| 3. 99%| 4. 99%| Return on assets| 0. 99%| 1. 23%| Leverage multiplier| 13. 37times| 12. 53times| Return on equity| 13. 20%| 15. 41%| Hong Leong Bank’s net margin (24. 77%) is higher than RHB Bank’s (24. 64%). It means that RHB Bank’s operating costs are relatively hig her. RHB Bank’s operating costs are RM3,113,160,000 whereas Hong Leong Bank’s operating costs are RM2,040,931,000.Thus, RHB Bank’s operating costs are higher by RM1,072,229,000. This indicates that operating costs are well controlled by Hong Leong Bank compared to RHB Bank. RHB Bank’s asset utilisation (4. 99%) is higher than Hong Leong Bank’s (3. 99%). This shows that RHB Bank used most effectively of its assets to generate more revenue than Hong Leong Bank. RHB Bank’s revenue is RM5,253,455,000 which is higher than Hong Leong Bank’s revenue which is RM3,099,565,000. Hong Leong Bank’s return on assets is 0. 99% which is slightly lower than RHB Bank’s return on assets which is 1. 23%.This can be implied that Hong Leong Bank did not manage and utilise its assets base better than RHB Bank during operations to generate revenue. However, both banks generated low return on the basis of their assets. With total assets of RHB B ank is RM105,179,231,000, it generated revenue of RM5,253,455,000 whereas Hong Leong Bank’s total assets is RM77,730,208,000 and it generated revenue of RM3,099,565,000. Even though, RHB Bank has assets of 1. 35times more than Hong Leong Bank, its return on assets is still low.Thus Hong Leong Bank managed its assets better than RHB Bank. Hong Leong Bank’s leverage multiplier (13. 7times) is higher than RHB Bank’s (12. 53times). Hong Leong bank has leverage multiplier of 0. 84times more compared to RHB Bank. This implies that RHB Bank does not depend too much on debt financing in their activities and carries less debt in their operations. Thus, Hong Leong Bank is exposed to more risk than RHB Bank. Hong Leong Bank’s return on equity is 13. 20% which is lower than RHB Bank’s 15. 41%. RHB Bank has a higher ROE because possibly the bank does not rely too much on debt financing and offers a high return to shareholders of the bank. Thus, shareholders of RHB Bank will be happy and stay with RHB Bank.Shareholders of Hong Leong Bank may sell its shares and leave the bank. Generally, the overall financial performance of Hong Leong Bank is not very well in comparison with RHB Bank (peer bank). It is possible that Hong Leong Bank’s objectives and strategies are different from RHB Bank’s. Question 2: Hong Leong Bank’s data of 2010 Interest earning asset 1:| RM’000| Deposits and placements with banks and other financial institutions| 7,004,664| Securities held at fair value through profit or loss| 6,703,224| Available-for-sale securities| 3,859,367| Held-to-maturity securities| 7,042,610| Loans, advances and financing| 33,589,093|Other assets| 2,014,821| Total| 60,213,779| | | Earning assets 2:| | Interest Income Assets:| | Deposits and placements with banks and other financial institutions| 7,004,664| Securities held at fair value through profit or loss| 6,703,224| Available-for-sale securities| 3,859,367| Held -to-maturity securities| 7,042,610| Loans, advances and financing| 33,589,093| Other assets| 2,014,821| | | Non-Interest Income Assets:| | Investment in subsidiary companies (Note 31) earning dividend| 714,092| Investment in associated company (Note 31) earning dividend| 946,505| Total| 61,874,376| | |Interest sensitive assets 3:| | Cash and short-term funds| 13,421,408| Deposits and placements with banks and other financial institutions| 7,004,664| Available-for-sale securities| 681,619| Held-to-maturity securities| 1,705,674| Loans, advances and financing| 30,712,038| Total| 53,525,403| | | Interest bearing liabilities 4:| | Deposits from customers| 63,239,050| Deposits and placements of banks and other financial institutions| 3,791,129| Bills and acceptances payable| 285,366| Other liabilities| 3,890,295| Total| 71,205,840| | | Interest sensitive liabilities 5:| | Deposits from customers| 54,798,922|Deposits and placements of banks and other financial institutions| 3,784,376| Bil ls and acceptances payable| 25,453| Total| 58,608,751| | | | | Liquid assets 6:| | Cash and short-term funds| 13,928,247| Deposits and placements with banks and other financial institutions| 7,004,664| Loans, advances and financing (Note 8)| 9,057,329| Available for sales securities| 3859367| Total| 33,849,607| | | Deposits | 7,004,664| Shareholders’ fund = Total equity| 5,815,063| | | Net-write offs 7:| 202,219| NOTES: 1 Interest earning asset are assets that earns interest income. (Note 28 of pg113 of Hong. Leong Bank Annual Report 2010) Earning assets Income earning assets held by a bank typically include interest bearing balances, investment securities and loans. (Note 28 of pg113 & Note 31 of pg115 of Hong Leong Bank Annual Report 2010) 3 Interest sensitive assets are the dollar value of assets that either mature or can be repriced within within a selected time period such as one year. 4 Interest bearing liabilities are those liabilities that have to pay interest. 5 Interest sensitive liabilities are the dollar value of liabilities that either mature or can be reprised within a selected time period usually of one year.Liquid assets are unpledged, marketable short term securities that are classified as available for sale, plus federal funds sold and securities purchased under agreement to resell, a liquid asset can be easily and quickly converted into cash with minimum loss. 7 Net Write Offs is the amount written off under the assets of loans, advances and financing. (Note 8of pg95 of Hong Leong Bank Annual Report 2010) NOTES: 8 Interest Sensitive Assets RM’000 13,421,408 7,004,664 681,619 1,741,674 30,712,038 Interest Sensitive Liabilities RM’000 54,798,922 3,784,376 25,453 Interest Sensitive Assets RM’000 3,421,408 7,004,664 681,619 1,741,674 30,712,038 Interest Sensitive Liabilities RM’000 54,798,922 3,784,376 25,453 RHB Bank’s data of 2010 Interest Earning asset 1:| RM’000| Loans, advances and financ ing| 71,125,558| Money at call and deposit placements with banks and other financial institutions| 1,539,648| Securities purchased under resale agreement| 276,407| Financial assets held-for-trading| 129,583| Financial investments available-for-sale| 8,143,221| Financial investments held-to-maturity| 8,143,221| Total| 89,357,638| | | Earning assets 2:| | Loans, advances and financing| 71,125,558|Money at call and deposit placements with banks and other financial institutions| 1,539,648| Securities purchased under resale agreement| 276,407| Financial assets held-for-trading| 129,583| Financial investments available-for-sale| 8,143,221| Financial investments held-to-maturity| 8,143,221| Total| 89,357,638| | | Interest sensitive assets 1:| | Cash and short-term funds| 10,270,874| Securities under resale agreement| 276,398| Deposits and placements with banks and other financial institutions| 777,779| Financial investment available-for-sale | 1107052| Held-to-maturity securities| 3833825| Loans, advances and financing| 52741914| Total| 69,007,842| | | Interest bearing liabilities 4:| | Deposits and placements of banks and other financial institutions| 6,158,453| Deposits from customers| 80,567,577| Subordinated obligations| 3,018,157| Recourse obligation on loans sold to Cagamas Berhad| 818,503| Hybrid Tier I Capital Securities| 605,407| Long term borrowings| 819,362| Others liabilities| 868,165| Total | 92,855,624| Interest sensitive liabilities 2:| | Deposits from customers| 63,270,532| Deposits and placements of banks and other financial institutions| 5558376| Bills and acceptances payable| 2934533|Recourse obligation on loans sold to Cagamas Berhad| 147030| Long term borrowings| 817127| Total| 72,727,598| | | | | Liquid assets 3:| | Cash and short-term funds| 11093561| Securities purchased under resale agreements| 276,407| Deposits and placements with banks and other financial institutions| 782,462| Financial assets held-for-trading| 119,374| Financial investment available-for-sale| 1176035| Financial investment held-to-maturity| 3854749| Loans, advances and financing| 14124170| Other assets| 88835| Derivative assets| 190637| Total| 31,706,230| | | Deposits | 1,539,648|Shareholders’ fund = Total equity| 8,397,474| | | Net-write offs 7:| 1,033,573| NOTES: 1, 2, 3 – Please refer to appendix. | Hong Leong BankRM’000| RHB BankRM’000| Interest earning assets| 60,213,779| 89,357,638| Interest bearing liabilities| 71,205,840| 92,855,624| Earning Assets| 61,874,376| 89,357,638| Interest sensitive assets (RSA)| 53,525,403| 69,007,842| Interest sensitive liabilities (RSL)| 58,608,751| 72,727,598| Liquid assets | 33,849,607| 29,990,240| Shareholders’ fund| 5,815,063| 5,815,063| Net-write offs| 202,219| 1,033,573| Operating Income| 3,099,565| 5,253,455|Operating Expense| 2,040,931| 3113160| Other key indicators for the year ended 2010: Bank efficiency| Hong Leong Bank| RHB Bank| Efficiency ratio:Operating expenses Ope rating income| RM2,040,931,000RM3,099,565,000= 65. 85%| RM3,113,160,000RM5,253,455,000= 59. 26%| Cost to assets ratios:Operating expenses Total assets| RM2,040,931,000RM77,730,208,000= 2. 63%| RM3,113,160,000RM105,179,231,000= 2. 96%| Efficiency ratio measures the changes of costs in relation to income. Hong Leong Bank has an efficiency ratio of 65. 85% while RHB Bank is one with the lower which is 59. 26%.This implies that Hong Leong Bank’s rate in increasing the operating income is at lower rate compared to RHB Bank. In terms of rate of increase in operating income, Hong Leong has the lower efficiency compared to RHB. Cost to assets ratio is used to measure the costs incurred in relation to the assets size. RHB Bank has a higher cost to assets ratio that is 2. 96% compared to Hong Leong Bank that has a figure of 2. 63%. Therefore in term of cost of control relative to the total assets owned, Hong Leong is more efficient than RHB Bank. Interest differentials| Hong Leong Bank | RHB Bank|Net interest income:Interest earned -Interest expense| RM2,592,586,000 -RM1,209,792,000= RM1,382,794,000| RM4,530,637,000-RM1,811,153,000= RM2,719,484,000| % of interest margin:interest earned – interest expenses Earning assets| RM2,592,586,000-RM1,209,792,000RM61,874,376,000= 2. 23%| RM4,530,637,000-RM1,811,153,000RM89,357,638,000= 3. 04%| %interest spread(interest earned/interest earning assets) – (interest expense/ interest bearing liabilities)| (RM2,592,586,000/RM60,213,779,000)-(RM1,209,792,000/RM71,205,840,000)= 2. 1%| (RM4,530,637,000/RM89,357,638,000)-(RM1,811,153,000/RM92,855,624,000)= 3. 12%| Net interest income refers the difference between revenue that is generated from the bank’s assets and expenses associated with paying out its liabilities. In the table above, RHB Bank’s net income is RM2,719,484,000 which is higher than Hong Leong Bank which have a figure of RM1,382,794,000. This means that RHB Bank has higher excess revenue and interest income after deducting interest paid on deposit from interest earned on assets.Percentage interest margin shows the dollar difference between interests earned and interest expense, as a percentage of earnings assets. Hong Leong Bank’s% interest margin is 2. 23% which is lower than RHB Bank which is 3. 04%. This implies that RHB Bank made a better investment than Hong Leong Bank due to higher percentage interest margin. Percentage interest spread refers to the difference in borrowing and lending rates of financial institutions (such as banks) in nominal terms. RHB Bank’s % interest spread is 3. 12% which is higher than Hong Leong Bank’s 2. 23%. Risk management| Hong Leong Bank| RHB Bank|Interest rate riskinterest sensitive assets interest sensitive liabilities| RM53,525,403,000RM58,608,751,000= 0. 91| RM69,007,842,000RM72,727,598,000= 0. 95| Credit risk net write-offs total assets| RM202,219,000RM77,730,208,000= 0. 26%| RM1,033,573,000RM105,179,231,000= 0. 98%| Liquidity risk :liquid assets/total asset liquid assets/deposits| RM33,849,607,000/RM77,730,208000= 0. 44RM33,849,607,000/RM7,004,664,000= 4. 83| RM29,990,240,000/RM105,179,231,000= 0. 29RM29,990,240,000/RM1,539,648,000= 19. 48| Capital risk :shareholders’ funds total assets| RM5,815,063,000RM77,730,208,000= 7. 48%| RM8,397,474,000RM105,179,231,000= 7. 8%| Interest Sensitivity ratio measures the interest rate risk and it measures the level of repricing irregularities between the bank’s assets and liabilities. RHB bank has an interest sensitivity ratio of 0. 95 while Hong Leong has 0. 91 which is slightly lower than RHB Bank. This implies that RHB Bank can replace assets with higher yielding assets quicker than replacing the low cost deposits with more funds compared to RHB. Credit risk refers to risk of loss of principal due to the borrower’s failure to repay the loans or otherwise meet the contractual obligation. RHB bank has a higher credit risk which stands at 0. 8 % compared to Hong Leong that has a lower figure of 0. 26%. This shows that Hong Leong is better in managing its credit risk compared to RHB. Liquidity ratio is used to measure the ability of the bank to repay off its short term obligations. RHB Bank has lower liquidity ratios of 0. 29 while Hong Leong has a higher ratio of 0. 44. This shows that Hong Leong has higher liquid assets to meet short term obligation and able to repay all short term debt in time compared to RHB Bank. The capital risk ratio is used to calculate the capital risk and it measures the financial stability of the bank.RHB Bank has a higher simple capital ratio that has a figure 7. 98% compared to Hong Leong bank that has a value of 7. 48%. This implies that RHB is well protected against any operating losses incurred than Hong Leong. Overall, in terms of risk management RHB Bank is performing well compared to Hong Leong Bank for the year ended 2010. Question 3: Comparison of forms of loans between RHB and Hong Leong Bank OverdraftsTerm loans/financing-Housing and shop loans/financing- Syndicated term loans/financing- Hire purchase receivables- Lease receivables- Other term oans/financingCredit/charge card receivablesBills receivableTrust receiptsClaims on customers under acceptance creditsBlock discountingRevolving creditStaff loans/financingFloor stockingOther loans/financingUnearned interest and incomeGross loans, advances and financingFair value changes arising from fair value hedgesUnamortised fair value changes arising from terminated fairvalue hedgesAllowance for impaired loans and financing-individual impairment allowance-collective impairment allowance-general allowance-specific allowanceAllowance for bad and doubtful debts and financing:- specific- generalTotal net loans, advances and financing| RHB Bank (RM’000)5,976,56915,908,732835,5889,322,667-29,854,4431,644,4651,418,203325,1774,130,205-3,491,071336,5281,56973,245,217-(682,522)(1,437,137)—-71123,9 89| Hong Leong Bank (RM’000)2,086,55016,933,8161,458,6333,284,687-1,653,6902,017,519211,01992,9823,184,6968,2181,219,78096,668-44,390(613,549)31,679,09928,3858,714—(306,807)(471,305)30,938,086|Credit risk is the risk of financial loss due to a borrower or counterparty being unable or unwilling to deliver on its payment obligations to the Bank, which leads to a loss of revenue and the principal amount. It arises principally from lending, trade finance and treasury activities (Hong Leong Bank Annual Report 2010 pg. 150). Based on the above table shows the comparison of the total amount of loans for Hong Leong Bank and RHB Bank for the financial year ended 2010. RHB Bank has the highest number of loans that stands at RM71,125,558,000 while Hong Leong Bank has a total of RM 33,589,093,000. However, based on the credit risk ratio RHB Bank has a higher credit risk which stands at 0. 98 % compared to Hong Leong that has a lower figure of 0. 26%.This shows that Hong Leong is b etter in managing its credit risk compared to RHB Bank RHB Bank has 2. 1times more loans than Hong Leong Bank, but it’s credit risk is 3. 76times more than Hong Leong Bank. It implies that Hong Leong is better in managing its credit risk and loan portfolio because most borrowers able to pay back the loan to the bank. Therefore, Hong Leong provided the best of the credit risk quality. In order for the bank to increase and strengthen the risk management practices, RHB Bank ensures to maintain the credit quality of its loan portfolios, improve cost effectiveness, and ensure the liquidity and capital stay strong throughout the financial year in 2010.Therefore, RHB Bank manages risk through clearly defined guidelines that are approved by the Board of Directors, through a framework of established control and reporting process. Hong Leong Bank also gives a strong priority for managing effectively in credit management. It is also managed by high-experience personal with high level re view undertaken by the Management Credit Committee under the supervision of the Board Credit Supervisory Committee. The bank integrated risk management structure is similar to RHB Bank whereby credit risk framework that is compliant with Bank Negara Malaysia’s guidelines on ‘‘Best Practices for the Management of Credit Risk†.The Group Risk Management Committee (GRMC) had been established by RHB Bank for risk oversight within the bank. Among the committees of this group are namely the Group Credit Risk Management Committee (GCRMC), Group Operational Risk Management Committee (GORMC) and Group Assets and Liabilities Management Committee (GALCO) assist the GRMC in managing credit risk, operational risk as well as market and liquidity risk. The committee ensures the development and implementation of risk policies as well as the effectiveness of policies. Among the exposure of credit risk in RHB Bank may be categorized as primary exposure. Loans, advances and fin ancing are the credit risk that arises in the primary exposure.Most of the lending activities in the bank are guided by the Group’s Credit Policies and Guidelines, in line with Best Practices in the Management of Credit Risk, issued by Bank Negara Malaysia. The credit risk policy includes an overview of the lending organisation, and the responsibilities of the parties in the organisation whereby the Board have a loan committee that oversees major new loan and renewals and the performance of the loan portfolio (Gup et al, 2007). Example, Hong Leong will be redeveloping a new credit risk system for corporate and commercial borrowers while for the retail segment, the bank has implemented a credit application and behavioural scoring system in order to improve the Bank’s ability to control credit losses within predictive ranges and achieve a well balanced portfolio.This is accordance to the Basel II that RHB Bank is also practising whereby every bank requires to hold adequa te capital in order to fulfil the minimum capital adequacy of the bank. This is also supported by Hassan & Muhammad, (2007) whereby bank loans are the most largest and obvious credit risk. Therefore the Basel II is required so that most banks will know how much capital they must hold. The Bank’s credit risk management process is documented and processed In the Credit Manual. One of the functions of the Credit Manual that is introduced by Hong Leong Bank is to set out the lending policies, lending authorities, credit risk rating, credit reviews, collateral, credit administration and security documentation, and timely rehabilitation and restructuring of problematic and delinquent accounts.Apart from that, this is to ensure that structures are there to maintain to enhance the Bank’s risk assessment capabilities in key areas of credit that includes sound credit policies and procedures, quality credit approvals, appropriate risk measurement. ARHB Bank does not have this Credit Manual but they form a second line defence that formulate the risk management policies. The function of an internal audit is to provide independent reviews of the quality of the loans (Gup et al, 2007). Based on the Hong Leong Bank Annual Report (2010), it states that Internal Audit conducts independent post to reviews on the financial statements and the capital of the bank.This is to ensure that the qualities of credit risk and approval standards are in accordance with the credit standards and the lending policies and directives established and approved by the Bank’s management and Board of Directors. Question 4: Conclusion In conclusion, the performance of Hong Leong Bank for the financial year ended in 2010 is not as good as its peer bank RHB Bank. This is due to that the ROE is lower compared to RHB Bank. This can be improved by not relying too much on debt financing for its operations and to provide more return to investors. Also, Hong Leong Bank did not create m uch value to the shareholders due to low ROE. However, only the net margin part is the main strength of Hong Leong compared to RHB Bank This indicates that operating costs are well controlled by Hong Leong Bank compared to RHB Bank.This is a good indicator as this prevents wastage and smartly uses the assets to generate more income. The liquidity ratio for both the banks are below 1 which is not safe for both banks because they cannot meet the requirements to pay off the obligations and current assets are less than current liabilities they having. Based on the ratio analysis for year 2009 to 2010, the ROE, ROA and net margin ratio shows a good improvement due to economic boom and inflation happens during the period. However, in 2009, most of the ratio for Hong Leong Bank declines because may be due to economic recession and the decline in the economic activity of the bank.For the credit risk, RHB Bank did not manage its credit risk well compared to Hong Leong based on the credit ana lysis. RHB could improve their credit risk by having an internal audit to check on the loan defaulters and the accounts. Personal experience of visiting banks We visited Hong Leong Bank and RHB Bank in Ampang branch and Cheras branch. We asked the branch manager of RHB Bank for more details of their items on balance sheet and income statement. She did not know what items are called interest earning assets in Balance sheet. She does not know Income Statement and Balance Sheet. I was surprised, she is a manager and she does not know.She was kind enough to call the headquarter of RHB Bank and made me speak to the person in charge of financial statements. Well, I was told that each bank has different items calling interest earning assets and liquid assets. He cannot release those details. The RHB Bank and Hong Leong Bank in Ampang Branch have 400 to 500 customers daily and they are overcrowded during lunch hours. However, the RHB Bank has 100-150 customers daily and Hong Leong Bank has 50-100 customers daily in Cheras branch. Most customers come during the lunch hours. Ampang branch has more customers compared to RHB Bank. Thus it depends on location, the number of customers visit banks. Below are the cards of Hong Leong bank and RHB Bank:Ampang Branch Cheras Branch Part B: Virtual Bank Balance Sheet |   |   | |   |   |   | | Liabilities| |   | | Asset| | 1. Deposit| | |   | 1. Gold and foreign exchange| i. Current deposit | |   | 2. Cash and Liquid Assets| | ii. Fixed deposit| |   | 3. Securities| | iii. Certificates of deposit|   | i. Trading securities | | iv. Other deposits such as call deposits, cash| ii. Investment securities | | management accounts and savings account| iii. Short term discount security| 2. Non-deposit liabilities| |   | iv. Long term bonds or notes| Liabilities due to clearing houses and financial| 4.Loans and advances| | institutions and rank in priority after deposit| i. Overdraft | | i. Repurchase agreements|   | ii. Credit card outstanding| ii. Promissory notes| |   | iii. Housing finance | | iii. Liabilities on bill acceptances|   | iv. Other term loans| | iv. Corporate bonds and other long-term borrowings| v. Lease and hire purchase finance | 3. Due to other banks| |   | 5. Due from other banks| | 4. Trading derivatives| |   | 6. Trading derivatives| | 5. Other financial liabilities at fair value| 7. Other financial assets at fair value| 6. Other borrowings| |   | 8. All other asset| | 7. Bonds, notes, and subordinated debt| 9.Due from customer on acceptance | 8. Other debt issues| |   | | | | 9. All other liabilities| |   | | | | 10. Goodwill and other intangible asset| | | | | | |   | | | | | | |   | | | | | Capital| |   | | | | Capital acts as a buffer against unexpected losses and| | | | protects against insolvency. |   | | | | i. Debt capital : borrowed funds|   | | | | ii. Equity capital : shareholders' fund| | | | NOTES : Asset 1. Changes in this item reflec t transactions of the following kinds: a. the Bank's transactions in foreign exchange and foreign securities (including under repurchase agreements); b. earnings on foreign currency investments; and c. hanges in the valuation of foreign currency and gold, and changes in the market prices of the Bank's holdings of foreign currency securities. 2. Liquid assets are assets that can be converted into cash quickly without loss of value 3. i. Trading securities : banks plans to sell before maturity ii. Investment securities : banks plan to hold till maturity iii. Short term discount securities : pay face value at maturity iv. Long term bonds or notes which pay coupons during the life of the security and the face value of maturity. 4. Includes loans, deposits with central banks and other regulatory authorities and settlement account balances due from other banks.Amounts due from other banks are initially recognised at fair value and subsequently measured at amortised cost. Advances: non-der ivative financial assets with fixed payments that are not quoted in an active market i. Overdraft : – borrower can draw up to the limit * Interest payable on amount drawn * Commitment fee is payable on the undrawn amount| ii. Credit card outstanding: – borrower can purchase on credit| or take cash in advance -form of revolving credit -Interest payable on amount drawn -annual fee may be charged | | | | iii.Housing finance : – Mortgage where the collateral is real estate – loan application fees are charged – variable rates(up to 30 years) – fixed rates(3-5 years)| iv. Other term loans : – example such as fully drawn advance – maturity of 5-8 years – a single loan of a specific dollar amount – fixed interest rate – application fees, establishment fees – repayment maybe fully amortised or structured to match the profits Generated by project being finance. | v.Lease and hire purchase finance : – se cured loans where the collateral is an asset – term of loan related to the life of the collateral – fixed interest rate – application fees, establishment fees| | | 5. Trading derivatives have not been shown by contractual maturity because they are typically held for various periods of time. 6. Also called as market related contingencies such as futures, swaps, options, forward rate agreements 7. example: land, buildings 8.Due from customer on acceptance : customer who wants to borrow from the bank may be offered a â€Å"bill facility† and the customer must agree to repay the bank. The bank is the acceptor(promise to pay the holder the face value Liabilities: Deposit: 1. Current deposit : – No maturity and no minimum balance – Withdrawals by writing a cheque or through electronic transactions – May be interest bearings(variable interest rate) or non-interest bearing 2. Fixed deposit : – Minimum amount – Specific term eg. 1-5 years – Early withdrawals incur a penalty – Fixed interest rate 3. Certificates of deposit : – Face value at least $100,000 – Maturities between 14-270 days – Fixed interest rate – Originally issued at par but may trade above or below depending on Market yields. At maturity, receives face value plus interest 4. The deposits : a) Call deposit – must give notice of withdrawal, variable interest rate b) cash management accounts – minimum balance requirement, variable interest rate linked to money market yields c) savings account – no minimum balance or notice of withdrawal requirements – variable interest rate Non-Deposit: i. Repurchase agreements : – banks borrow for a short period (5 years) – sell securities with an agreement to repurchase on agreed date at agreed price ii. Promissory notes : – discount securities – bank sells to the market iii. Liabilities on bill acceptance : -bank is the acceptor and pays face value at maturity iv.Corporate bonds and other long term borrowings : example domestic bonds, eurobonds Due to Other Banks: Includes deposits, vostro balances, repurchase agreement and settlement account balances due to other banks. Trading derivatives: Financial liabilities at fair value are financial liabilities held for trading if it is acquired or incurred principally for the purpose of selling or repurchasing it in the near term. | Other financial liabilities at fair value Borrowings are initially recognised at fair value, net of transaction costs incurred. It is subsequently carried at amortised cost, any difference between initial recognised amount and the redemption value is recognised in the profit or loss.For example: borrowing from reverse bank, other banks, or borrowing from outside of the country. Other financial liabilities at fair value: Short term and long-term debt issues of the group including commercial paper, notes, term loans, medi um-term notes, mortgage backed securities and other discrete debt issues. All other liabilities: I) Bills Payable (drafts, telegraphic transfers, mail transfers payable, pay slip, bankers cheques, other miscellaneous items, etc) II) Inter-Office (The inter-office adjustments balance, if in credit, should be shown under this head. Only net position of interoffice accounts, inland as well as foreign should be shown here)III) Interest Accrued (Includes interest due and payable and interest accrued, but not due on deposits and borrowings Includes net provision for income tax and other taxes like interest tax (less advance payment, tax deducted at source, etc. ) IV) Deferred Tax (surplus provisions in bad debts provision account, surplus provisions or depreciation in securities, Contingency funds which are not disclosed as reserves but are actually in the nature of reserves, proposed dividend/transfer to Government. ) V) Others (which are not disclosed under any of the major heads such a s unclaimed dividend, provisions and funds kept for specific purposes, unexpired discount, outstanding charges like rent, conveyance, etc. certain types of deposits like staff security deposits, margin deposits, etc) Goodwill and other intangible asset:Goodwill arises on the acquisition of an entity and represents the excess of the aggregate of the fair value of the purchase consideration and the amount of any non-controlling interest in the entity over the fair value of the Group’s share of the identifiable net assets at the date of the acquisition. Capital Debt capital : borrowed funds, ranks higher than equity capital for the repayment of annual returns. Equity capital : -shareholders’ fund which represents the remaining interest in assets of a company. -permanent commitment of funds -earns the residual income of the firm after all interest and other costs -main components includes issue share, reserve and retained earnings References Hong Leong Bank. (2011). Annual Report: 2010. Retrieved September 14, 2011 from http://www. hlb. com. my/data/ar2010. pdf RHB Bank. 2011). Annual Report: 2010. Retrieved September 12, 2011 from http://www. rhb. com. my/corporate_profile/investor_relation/pdf/annual_reports/2010/RHB%20Bank%20Berhad%202010. pdf Gup, B. E. , Avram, K. , Beal, D. , Lambert, R. , ;amp; Kolari, J. W. (2007). Commercial Banking. Milton, Qld: John Willey ;amp; Sons Hassan, H. , ;amp; Mohammed, F. (2007). Banks’ risk management: a comparison study of UAE national and foreign banks. The Journal of Risk ;amp; Finance, 8(4), 394-409. Hong Leong Bank Berhard. (2009). Annual Report: 2009. Retrieved September 14, 2011 from http://www. hlb. com. my/data/ar20091. pdf Milbourn, G. , ;amp; Haight, T. (2005).Providing Students with an Overview of Financial Statements Using the Dupont Analysis Approach. The Journal of American Academy of Business, Cambridge. 9(3), 46-50 Narayanan, L. (2010). How DuPont Analysis Reveals Return on Equity Ratio. Managing Credit, Receivables ;amp; Collections. 2(1), 12-14. Pinsent, W. (2010). Decoding DuPont Analysis. Retrieved September 2, 2011, from http://www. investopedia. com/articles/fundamental-analysis/08/dupont-analysis. asp Class Dupont. (2010). Current Financial Accounting. Retrieved September 10, 2011, from http://www. sjrbiz. info/Current%20Classes/Financial%20Accounting%20Class/Dupont%20Model%20in%20a%20Nutshell. pdf

Monday, January 6, 2020

Pro Teen Plastic Surgery Debate Information - 3238 Words

Current event- Historical event- She is just 14, going to undergo plastic surgery. her face bears the painful-looking raised scars and puckered skin of a burn victim. Blikis was burned in an acid attack. Acid eating through the skin on their faces, destroying cartilage and bone in minuetes. As she waits for her first surgery to help restore her face and her future. Driscoll, Amy. World of Hope for Acid Attack Victim. Miami Herald (Miami, FL). 15 Jul 2001: 1B+. SIRS Issues Researcher. Web. 29 Mar 2012. Expert opinion- common cysts and moles, to the most complex congenital defects and birth abnormalities. General reconstructive surgery Children’s plastic surgeons also perform procedures for complex reconstructive problems caused†¦show more content†¦Medscape: Are there guidelines or instruments available to help plastic surgeons with the psychological assessment of patients? Dr. McGuire: Its something that you learn during residency while watching your mentors evaluate patients. When you evaluate a patient, its not just the physical examination; its also an assessment of patients emotional and mental health and stability. Plus, the consultation is a 2-way street: The patient assesses the surgeon to determine whether the surgeon is competent, caring, and appropriate for them, and the surgeon assesses the patient for appropriateness for the surgery. Medscape: If one surgeon decides that a teenager is not appropriate for surgery, cant that patient just keep shopping around until she finds a surgeon that will do the job? Dr. McGuire: Absolutely. When you have a patient who isnt appropriate for surgery you dont say, Get out of here, youre nuts, or Youre not appropriate. Surgeons are obliged to do an educational session with that patient to explain why this is either not the right time or theyre not a good candidate. Its a matter of educating the patient and cautioning them not to go to unscrupulous, untrained people who call themselves plastic surgeons who would perform the procedure anyway. Patients should look for an ASPS-member surgeon who is board certified in plastic surgery. Medscape: Are surgeons actually taking the time to talk toShow MoreRelatedMm-Chapter 1-3 Dawn Iacobucci17854 Words   |  72 PagesLearning representative for additional information on these Marketing titles, or any of our additional 60 plus 4LTR Press solutions. www.cengage.com/4ltrpress S t U D e n t t e S t e D , F a C U Lt Y a P P r o V e D Student reference Cards and Chapter In review Cards at the back of the Student Edition provide students with a quick reference solution that ties back to chapter content, and a portable study tool containing all of the pertinent information for class preparation. 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