Hospitality Retail Management Assignment Example | Topics and Well Written Essays - 2250 words

Hospitality Retail Management - Assignment Example hat there is a vast number of players involved, each with his or her own role to play, blending in the ultimate picture with the host’s averment of caring for and entertaining guests. It becomes necessary, therefore, to go down a level or two and appraise the role of a retail manager, who, as we shall see later, is very much in the forefront of the situational management arena. Thereafter, an elite restaurant will be assessed with respect to its history and current status. The aim of this Case Study is to evaluate the roles and responsibilities of retail managers in the Food and Beverages category at both ends of the cost scale and appraise a renowned restaurant in relation to its historical and current perspective in a retail environment, the public sector. Having introduced the hospitality industry and stipulated the aim, this Paper will look at the industry in greater detail, compare the role and responsibilities of retail managers in the Food and Beverages category of a high end hotel, the Park Plaza Victoria London and the low cost ‘The hospitality industry is divided into two categories, the commercial and the non-commercial categories (online: bhtafe.edu.au). The commercial category includes establishments that operate for profit, whereas the non-commercial category comprises establishments that operate on a not for profit basis. With the advent of government privatisation policies, commercial caterers are now replacing many of the non-commercial food operators. Thus, there is less of a distinction between non-profit organisations and profit making enterprises nowadays. Examples of the commercial category include: As stated, the hospitality industry offers a variety of services within several distinct sectors. ‘The quality of service on offer to guests depends on the price being charged. For example, in the food and beverage area, eating in a three- star rated restaurant will be far more expensive than eating in a one star-rated restaurant. This

Poetry Essay Assignment Example | Topics and Well Written Essays - 1250 words

Poetry Assignment - Essay Example The poem however took a deeper meaning when the â€Å"rain† in a â€Å"long line† is taken figuratively. For it meant feeling blue in waiting in a long line not to mention the inconvenience brought by rain while â€Å"waiting at Ford Higland Park†. This complaint, grievance or poignant disposition of the writer serves as the thesis of the poem where the rest of the poem take its cue and argument of a narrative of a complaint. The workplace is not only inconvenient and difficult but can be cruel as well. With work and employees making a living, most of course would want more than they want. This want to have more can turn â€Å"your own brother† as â€Å"someone else’s brother† Evident with this line when â€Å"You rub your glasses /with your fingers,/and of course it’s someone else’s brother†. This suggests that man will turn against another just to get ahead ten paces ahead of us. This has been true during the time of Levine and is still true today not only at work but also in other aspect of life. Some will step on another or will do anything even to the detriment of a brother just to have a leg up. Work however is not only about drudgery and a never ending quest to endure. There must be a reason why people endure even the most back braking of work. Levine explained this in the poem why a man has to work. Poignant as the poem may sound with all the difficulty and impersonal rat race at the place of work, people work because of concern and love for the people they love. This love for someone else in their lives make them endure the drudgery of work no matter how hard it is. Levine may address that person in the poem as â€Å"brother† in the line â€Å"the love flooding you for your brother†, but it can be applied to anyone where a worker finds a reason to endure those long hours of repetitive work. The person may be a father or a mother working to provide for their family, a brother or a sister providing

History and Development of Banks in India

History and Development of Banks in India INTRODUCTION: The banking industry in India seems to be unaffected from the global financial crises which started from U.S in the last quarter of 2008. Despite the fallout and nationalization of banks across developed economies, banks in India seems to be on the strong fundamental base and seems to be well insulated from the financial turbulence emerging from the western economies. The Indian banking industry is well placed as compare to their banking industries western counterparts which are depending upon government bailout and stimulus packages. The strong economic growth in the past, low defaulter ratio, absence of complex financial products, regular intervention by central bank, proactive adjustment of monetary policy and so called close banking culture has favored the banking industry in India in recent global financial turmoil. Although there will no impact on the Indian banking system similar to that in west but the banks in India will adopt for more of defensive approach in credit disburs al in coming period. In order to safe guard their interest, banks will follow stringent norms for credit disbursal. There will be more focus on analyzing borrower financial health . A nation with 1 billion plus, India is the fastest growing country in terms of population and soon to overtake China as worlds largest populated country. The discerning impact on the over-stretched limited resources explains why India always tends to be deficient in infrastructure and opportunity. The largest economy of the world often frustrated researchers, as there was no single predictable pattern of the market; the multiplicity of government regulations and widespread government ownership had always kept investors away from exploring the vast Indian market. However, with India being liberalised today, banking intermediation has been playing a crucial role in economic development through its credit channel. Foreign banks have entered the soil but that has not yet posed a threat to the vast network of public sector banks that still conduct 92% of banking business in India. Banking in India has undergone a major revamp. It has come a long way since its creation which dates back to the British era. The present banking systems has come into place after many transformations from the Older systems. Against this background the present chapter deals with the evolution of the Indian Banking systems, the various reforms that has been made to make banks more effective, the role of private and foreign sector banks and last the challenges the Indian banks faces in the New Millennium . The banking system is central to a nations economy. Banks are special as they not only accept and deploy large amounts of uncollateralised public funds in a fiduciary capacity, but also leverage such funds through credit creation. In India, prior to nationalisation, banking was restricted mainly to the urban areas and neglected in the rural and semi-urban areas. Large industries and big business houses enjoyed major portion of the credit facilities. Agriculture, small-scale industries and exports did not receive the deserved attention. Therefore, inspired by a larger social purpose, 14 major banks were nationalised in 1969 and six more in 1980. Since then the banking system in India has played a pivotal role in the Indian economy, acting as an instrument of social and economic change. The rationale behind bank nationalisation has been succinctly put forth by eminent bankers: Many bank failures and crises over two centuries, and the damage they did under laissez faire conditions; the needs of planned growth and equitable distribution of credit, which in privately owned banks was concentrated mainly on the controlling industrial houses and influential borrowers; the needs of growing small scale industry and farming regarding finance, equipment and inputs; from all these there emerged an inexorable demand for banking legislation, some government control and a central banking authority, adding up, in the final analysis, to social control and nationalisation (Tandon, 1989). Post nationalisation, the Indian banking system registered tremendous growth in volume. Despite the undeniable and multifold gains of bank nationalization, it may be noted that the important financial institutions were all state owned and were subject to central direction and control. Banks enjoyed little autonomy as both lending and deposit rates were controlled until the end of the 1980s. Although nationalisation of banks helped in the spread of banking to the rural and hitherto uncovered areas, the monopoly granted to the public sector and lack of competition led to overall inefficiency and low productivity. By 1991, the countrys financial system was saddled with an inefficient and financially unsound banking sector. Some of the reasons for this were (i) high reserve requirements, (ii) administered interest rates, (iii) directed credit and (iv) lack of competition (v) political interference and corruption. As recommended by the Narasimham Committee Report (1991) several reform mea sures were introduced which included reduction of reserve requirements, de-regulation of interest rates, introduction of prudential norms, strengthening of bank supervision and improving the competitiveness of the system, particularly by allowing entry of private sector banks. With a view to adopting the Basel Committee (1988) framework on capital adequacy norms, the Reserve Bank introduced a risk-weighted asset ratio system for banks in India as a capital adequacy measure in 1992. Banks were asked to maintain risk-weighted capital adequacy ratio initially at the lower level of 4 per cent, which was gradually increased to 9 per cent. Banks were also directed to identify problem loans on their balance sheets and make provisions for bad loans and bring down the burgeoning problem of non-performing assets. The period 1992-97 laid the foundations for reform in the banking system (Rangarajan, 1998). The second Narasimham Committee Report (1998) focussed on issues like strengthening of th e banking system, upgrading of technology and human resource development. The report laid emphasis on two aspects of banking regulation, viz., capital adequacy and asset classification and resolution of NPA-related problems. Commercial banks in India are expected to start implementing Basel II norms with effect from March 31, 2007. They are expected to adopt the standardised approach for credit risk and the basic indicator approach for operational risk initially. After adequate skills are developed, both at the banks and at the supervisory levels, some banks may be allowed to migrate to the internal rating based (IRB) approach (Reddy 2005). At present, banks in India are venturing into non-traditional areas and generating income through diversified activities other than the core banking activities. Strategic mergers and acquisitions are being explored and implemented. With this, the banking sector is currently on the threshold of an exciting phase. Against this backdrop, this paper endeavours to study the important banking indicators for the last 25-year period from 1981 to 2005. These indicators have been broadly grouped into different categories, viz., (i) number of banks and offices (ii) deposits and credit (iii) investments (iv) capital to risk-weighted assets ratio (CRAR) (v) non performing assets (NPAs) (vi) Income composition (vii) Expenditure composition (viii) return on assets (ROAs) and (ix) some select ratios. Accordingly, the paper discusses these banking indicators in nine sections in the same order as listed above. The paper concludes in section X by drawing important inferences from the trends of these di fferent banking parameters. The number of offices of all scheduled commercial banks almost doubledfrom 29,677 in 1980 to 55,537 in 2005. This rapid increase in the number of bank offices is observed in the case of all the bank groups. However, the number of banks in the case of foreign bank group and domestic private sector bank group decreased from 42 in 2000 to 31 in 2005 and from 33 in 2000 to 29 in 2005, respectively. This fall in the number of banks is reflective of the consolidation process and, in particular, the mergers and acquisitions that are the order of the banking system at present (Table 1). BANKING IN THE OLDER DAYS Banking is believed to be a part of Indian society from as early as Vedic age; transition from mere money lending to banking must have happened before Manu, the great Hindu jurist, who had devoted a large section of his work to deposits and advances and also formulated rules for calculating interest on both 1. During the Mogul period indigenous bankers (rich individuals or families) helped foreign trades and commerce by lending money to the business. It was during the East Indian period when agency houses started managing the banking business. The first Joint Stock bank India saw came in 1786 named the General Bank of India followed by the Bank of Hindustan and the Bengal Bank. Only the Bank of Hindustan continued to be in the show until 1906 while the other two disappeared in the meantime. East India Company established three banks in first half of 19th century: the Bank of Bengal in 1809, the Bank of Bombay in 1840, and the Bank of Madras in 1843. Eventually these three banks (which used to be referred to as Presidency Banks) were made independent units and they really did well for almost a century. In 1920, these three were amalgamated and a new Imperial Bank of India was established in 1921. Reserve Bank of India Act was passed in 1934 and finally in 1935, the Central Bank was created and christened as Reserve Bank of India. Imperial Bank was undertaken as State Bank of India after passing the State Bank of India Act in 1955. During the last phase of freedom fighting (Swadeshi Movement) few banks with purely Indian man agement were established like Punjab National bank (PNB), Bank of India (BoI) Ltd, Canara Bank Ltd, Indian Bank Ltd, the Bank of Baroda Ltd, the Central Bank of India Ltd, etc.July 19, 1969 was an important day in the history of Indian banking industry. Fourteen major banks of the country were nationalised and on April 15, 1980 six more commercial private banks were taken over by the Indian government. In the wake of liberalisation that started in the last decade a few foreign banks entered the foray of commercial banks. To date there are around 40 banks of foreign origin that are  operating in the market, like ABN AMRO Bank, ANZ Grindlays Bank, American Express Bank, HSBC Bank, Barclays Bank and Citibank groups to name a few major of them. HISTORY OF INDIAN BANKS: We can identify three distinct phases in the history of Indian Banking. Early phase from 1786 to 1969 Nationalisation of Banks and up to 1991 prior to banking sector Reforms New phase of Indian Banking with the advent of Financial Banking Sector Reforms after 1991. The first phase is from 1786 to 1969, the early phase up to the nationalisation of the fourteen largest of Indian scheduled banks. It was also the traditional or conservative phase of Indian Banking. The advent of banking system of India started with the establishment of the first joint stock bank, The General Bank of India in the year 1786. After this first bank, Bank of Hindustan and Bengal Bank came to existence. In the mid of 19th century, East India Company established three banks The Bank of Bengal in 1809, The Bank of Bombay in 1840, and bank of Madras in 1843. These banks were independent units and called Presidency banks. These three banks were amalgamated in 1920 and a new bank, Imperial Bank of India was established. All these institutions started as private shareholders banks and the shareholders were mostly Europeans. The Allahabad Bank was established in 1865. The next bank to be set up was the Punjab National Bank Ltd., which was established with its headquarters at La hore in 1894 for the first time exclusively by Indians. Most of the Indian commercial banks, however, owe their origin to the 20th century. Bank of India, Central Bank of India, Bank of Baroda, the Canara Bank, the Indian Bank, and the Bank of Mysore were established between 1906 and 1913. The last major commercial bank to be set up in this phase was the United Commercial Bank in 1943. Earlier the establishment of Reserve Bank of India in 1935 as the central bank of the country was an important step in the development of commercial banking in India. The history of joint stock banking in this first phase was characterised by slow growth and periodic failures. There were as many as one thousand one hundred banks, mostly small banks, failed during the period from 1913 to 1948. The Government of India concerned by the frequent bank failures in the country causing miseries to innumerable small depositors and others enacted The Banking Companies Act, 1949. The title of the Act was changed as Banking Regulation Act 1949, as per amending Act of 1965 (Act No.23 of 1965). The Act is the first regulatory step undertaken by the Government to streamline the functioning and activities of commercial banks in India. Reserve Bank of India as the Central Banking Authority of the country was vested with extensive powers for banking supervision. Salient features of the Act are discussed in a separate page/article At the time of Independence of the country in 1947, the banking sector in India was relatively small and extremely weak. The banks were largely confined to urban areas, extending loans primarily to trading sector dealing with agricultural produce. There were a large number of commercial banks, but banking services were not available at rural and semi-urban areas. Such services were not extended to different sectors of the economy like agriculture, small industries, professionals and self-employed entrepreneurs, artisans, retail traders etc. DRAW BACK OF INDIAN BANKING SYSTEM BEFORE NATIONALISATION Commercial banks, as they were privately owned, on regional or sectarian basis resulted in development of banking on ethnic and provincial basis with parochial outlook. These Institutions did not play their due role in the planned development of the country. Deposit mobilisation was slow. Public had less confidence in the banks on account of frequent bank failures. The savings bank facility provided by the Postal department was viewed a comparatively safer field of investment of savings by the public. Even the deficient savings thus mobilised by commercial banks were not channeled for the development of the economy of the country. Funds were largely given to traders, who hoarded agricultural produce after harvest, creating an artificial scarcity, to make a good fortune in selling them at a later period, when prices were soaring. The Reserve Bank of India had to step in at these occasions to introduce selective credit controls on several commodities to remedy this situation. Such cont rols were imposed on advances against Rice, Paddy, Wheat, Other foodgrains (like jowar, millets, ragi etc.) pulses, oilseeds etc. When the country attained independence Indian Banking was exclusively in the private sector. In addition to the Imperial Bank, there were five big banks each holding public deposits aggregating Rs.100 Crores and more, viz. the Central Bank of India Ltd., the Punjab National Bank Ltd., the Bank of India Ltd., the Bank of Baroda Ltd. and the United Commercial Bank Ltd. Rest of the banks were exclusively regional in character holding deposits of less than fifty Crores. Government first implemented the exercise of nationalisation of a significant part of the Indian Banking system in the year 1955, when Imperial Bank of India was Nationalised in that year for the stated objective of extension of banking facilities on a large scale, more particularly in the rural and semi-urban areas, and for diverse other public purposes to form State Bank of India. SBI was to act as the principal agent of the RBI and handle banking transactions of the Union State Governments throughout India. The step w as in fact in furtherance of the objectives of supporting a powerful rural credit cooperative movement in India and as recommended by the The All-India Rural Credit Survey Committee Report, 1954. State Bank of India was obliged to open an accepted number of branches within five years in unbanked centres. Government subsidised the bank for opening unremunerative branches in non-urban centres. The seven banks now forming subsidiaries of SBI were nationalised in the year 1960. This brought one-third of the banking segment under the direct control of the Government of India. But the major process of nationalisation was carried out on 19th July 1969, when the then Prime Minister of India, Mrs.Indira Gandhi announced the nationalisation of fourteen major commercial banks in the country. One more phase of nationalisation was carried out in the year 1980, when seven more banks were nationalised. This brought 80% of the banking segment in India under Government ownership. The country entered the second phase, i.e. the phase of Nationalised Banking with emphasis on Social Banking in 1969/70. Chronology of Salient steps by the Government after Independence to Regulate Banking Institutions in the Country 1949: Enactment of Banking Regulation Act. 1955 (Phase I): Nationalisation of State Bank of India 1959 (Phase II): Nationalisation of SBI subsidiaries 1961: Insurance cover extended to deposits 1969 (Phase III): Nationalisation of 14 major banks 1971: Creation of credit guarantee corporation 1975: Creation of regional rural banks 1980 (Phase IV): Nationalisation of seven banks with deposits over 200 crores. Shortcomings in the Functioning of Nationalised Banking Institutions However Nationalised banks in their enthusiasm for development banking, looking exclusively to branch opening, deposit accretion and social banking, neglected prudential norms, profitability criteria, risk-management and building adequate capital as a buffer to counter-balance the ever expanding risk-inherent assets held by them. They failed to recognise the emerging non-performing assets and to build adequate provisions to neutralise the adverse effects of such assets. Basking in the sunshine of Government ownership that gave to the public implicit faith and confidence about the sustainability of Government-owned institutions, they failed to collect before hand whatever is needed for the rainy day. And surfeit blindly indulged is sure to bring the sick hour. In the early Nineties after two decades of lop-sided policies, these banks paid heavily for their misdirected performance in place of pragmatic and balanced policies. The RBI/Government of India has to step in at the crisis-hour to implement remedial steps. Reforms in the financial and banking sectors and liberal re capitalisation of the ailing and weakened public sector banks followed. However it is relevant to mention here that the advent of banking sector reforms brought the era of modern banking of global standards in the history of Indian banking. The emphasis shifted to efficient, and prudential banking linked to better customer care and customer service. The old ideology of social banking was not abandoned, but the responsibility for development banking is blended with the paramount need for complying with norms of prudency and efficiency. Composition of Indian Banking System The Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institutions 2. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress. The need to become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. The unleashing of products and services through the net has galvanized players at all levels of the banking and financial institutions market grid to look into their existing portfolio offering. Conservative banking practices allowed Indian banks to be insulated partially from the Asian currency crisis. Indian banks are now quoting al higher valuation when compared to banks in other Asian countries (viz. Hong Kong, Singapore, Philippines etc.) that have major problems linked to huge Non Performing Assets (NPAs) and payment defaults. Co-operative banks are nimble footed in approach and armed with efficient branch networks focus primarily on the high revenue niche retail segments. The Indian banking has come from a long way from being a sleepy business institution to a highly proactive and dynamic entity. This transformation has been largely brought about by the large dose of liberalization and economic reforms that allowed banks to explore new business opportunities rather than generating revenues from conventional streams (i.e. borrowing and lending). The banking in India is highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% of advances. Indian nationalized banks (banks owned by the government) continue to be the major lenders in the economy due to their sheer size and penetrative networks which assures them high deposit mobilization. The banking system has three tiers. These are the scheduled commercial banks; the Regional rural banks which operate in rural areas not covered by the scheduled banks; And the cooperative and special purpose rural banks. Under the ambit of the nationalized banks come the specialized banking institutions. These co-operatives, rural banks focus on areas of agriculture, rural development etc., unlike commercial banks these co-operative banks do not lend on the basis of a prime lending rate. They also have various tax sops because of their holding pattern and lending structure and hence have lower overheads. This enables them to give a marginally higher percentage on savings deposits. Many of these cooperative banks diversified into specialized areas (catering to the vast retail audience) like car finance, housing loans, truck finance etc. In order to keep pace with their public sector and private counterparts, the co-operative banks too have invested heavily in information technology to offer high-end computerized banking services to its clients. Given below is the total list of banks operating in India. SCHEDULED AND NON SCHEDULED BANKS There are approximately Eighty scheduled commercial banks, Indian and foreign; almost Two Hundred regional rural banks; more than Three Hundred Fifty central cooperative banks, Twenty land development banks; and a number of primary agricultural credit societies. In terms of business, the public sector banks, namely the State Bank of India and the nationalized banks, dominate the banking sector.India had a fairly well developed commercial banking system in existence at the time of independence in 1947. The Reserve Bank of India (RBI) was established in 1935. While the RBI became a state owned institution from January 1, 1949, the Banking Regulation Act was enacted in 1949 providing a framework for regulation and supervision of commercial banking activity. The first step towards the nationalisation of commercial banks was the result of a report (under the aegis of RBI) by the Committee of Direction of All India Rural Credit Survey (1951) which till today is the locus classicus on the subject. The Committee recommended one strong integrated state partnered commercial banking institution to stimulate banking development in general and rural credit in particular. Thus, the Imperial Bank was taken over by the Government and renamed as the State Bank of India (SBI) on July 1, 1955 with the RBI acquiring overriding substantial holding of shares. A number of erstwhile banks owned by princely states were made subsidiaries of SBI in 1959. Thus, the beginning of the Plan era also saw the emergence of public ownership of one of the most prominent of the commercial banks. The All-India Rural Credit Survey Committee Report, 1954 recommended an integrated approach to cooperative credit and emphasised the need for viable credit cooperative societies by expanding their area of operation, encouraging rural savings and diversifying business. The Committee also recommended for Government participation in the share capital of the cooperatives. The report subsequently paved the way for the present structure and composition of the Cooperative Banks in the country There was a feeling that though the Indian banking system had made considerable progress in the 50s and 60s, it established close links between commercial and industry houses, resulting in cornering of bank credit by these segments to the exclusion of agriculture and small industries. To meet these concerns, in 1967, the Government introduced the concept of social control in the banking industry. The scheme of social control was aimed at bringing some changes in the management and distribution of credit by the commercial banks. The close link between big business houses and big banks was intended to be snapped or at least made ineffective by the reconstitution of the Board of Directors to the effect that 51 per cent of the directors were to have special knowledge or practical experience. Appointment of whole-time Chairman with special knowledge and practical experience of working of commercial banks or financial or economic or business administration was intended to professionalise t he top management. Imposition of restrictions on loans to be granted to the directors concerns was another step towards avoiding undesirable flow of credit to the units in which the directors were interested. The scheme also provided for the take-over of banks under certain circumstances. Political compulsion then partially attributed to inadequacies of the social control, led to the Government of India nationalising, in 1969,fourteen major scheduled commercial banks which had deposits above a cut-off size. The objective was to serve better the needs of development of the economy in conformity with national priorities and objectives. In a somewhat repeat of the same experience, eleven years after nationalisation, the Government announced the nationalisation of seven more scheduled commercial banks above the cut-off size. The second round of nationalisation gave an impression that if a private sector bank grew to the cut-off size it would be under the threat of nationalisation. From the fifties a number of exclusively state-owned development financial institutions (DFIs) were also set up both at the national and state level, with a lone exception of Industrial Credit and Investment Corporation (ICICI) which had a minority private share holding. The mutual fund activity was also a virtual monopoly of Government owned institution, viz., the Unit Trust of India. Refinance institutions in agriculture and industry sectors were also developed, similar in nature to the DFIs. Insurance, both Life and General, also became state monopolies. REFORM MEASURES The major challenge of the reform has been to introduce elements of market incentive as a dominant factor gradually replacing the administratively coordinated planned actions for development. Such a paradigm shift has several dimensions, the corporate governance being one of the important elements. The evolution of corporate governance in banks, particularly, in PSBs, thus reflects changes in monetary policy, regulatory environment, and structural transformations and to some extent, on the character of the self-regulatory organizations functioning in the financial sector. Policy Environment During the reform period, the policy environment enhanced competition and provided greater opportunity for exercise of what may be called genuine corporate element in each bank to replace the elements of coordinated actions of all entities as a joint family to fulfill predetermined Plan priorities. Greater competition has been infused in the banking system by permitting entry of private sector banks (Nine licences since 1993), and liberal licensing of more branches by foreign banks and the entry of new foreign banks. With the development of a multi-institutional structure in the financial sector, emphasis is on efficiency through competition irrespective of ownership. Since non-bank intermediation has increased, banks have had to improve efficiency to ensure survival. REGULATORY ENVIRONMENT Prudential regulation and supervision have formed a critical component of the financial sector reform programme since its inception, and India has endeavored to international prudential norms and practices. These norms have been progressively tightened over the years, particularly against the backdrop of the Asian crisis. Bank exposures to sensitive sectors such as equity and real estate have been curtailed. The Banking Regulation Act 1949 prevents connected lending (i.e. lending by banks to directors or companies in which Directors are interested). Periodical inspection of banks has been the main instrument of supervision, though recently there has been a move toward supplementary on-site inspections with off-site surveillance. The system of Annual Financial Inspection was introduced in 1992, in place of the earlier system of Annual Financial Review/Financial Inspections. The inspection objectives and procedures, have been redefined to evaluate the banks safety and soundness; to appraise the quality of the Board and management; to ensure compliance with banking laws regulation; to provide an appraisal of soundness of the banks assets; to analyse the financial factors which determine banks solvency and to identify areas where corrective action is needed to strengthen the institution and improve its performance. Inspection based upon the new guidelines have started since 1997. SELF REGULATORY ORGANIZATIONS India has had the distinction of experimenting with Self Regulatory Organisations (SROs) in the financial system since the pre-independence days. At present, there are four SROs in the financial system Indian Banks Association (IBA), Foreign Exchange Dealers Association of India (FEDAI), Primary Dealers Association of India (PDAI) and Fixed Income Money Market Dealers Association of India (FIMMDAI). INDIAN BANKS ASSOCIATION The IBA established in 1946 as a voluntary association of banks, strove towards strengthening the banking industry through consensus and co-ordination. Since nationalisation of banks, PSBs tended to dominate IBA and developed close links with Government and RBI. Often, the reactive and consensus and coordinated approach bordered on cartelisation. To illustrate, IBA had worked out a schedule of benchmark service charges for the services rendered by member banks, which were not mandatory in nature, but were being adopted by all banks. The practice of fixing rates for services of banks was consistent with a regime of administered interest rates but not consistent with the principle of competition. Hence, the IBA was directed by the RBI to desist from working out a schedule of benchmark service charges for the services rendered by member banks. Responding to the imperatives caused by the changing scenario in the reform era, the IBA has, over the years, refocused its vision, redefined its role, and modified its operational modalities. FOREIGN EXCHANGE DEALERS ASSOCIATION OF INDIA (FEDAI) In the area of foreign exchange, FEDAI was established in 1958, and banks were required to abide by terms and conditions prescribed by FEDAI for transacting foreign exchange business. In the light of reforms, FEDAI has refocused its role by giving up fixing of rates, but plays a multifarious role covering training of banks personnel, accounting standards, evolving risk measurement models like the VaR History and Development of Banks in India History and Development of Banks in India INTRODUCTION: The banking industry in India seems to be unaffected from the global financial crises which started from U.S in the last quarter of 2008. Despite the fallout and nationalization of banks across developed economies, banks in India seems to be on the strong fundamental base and seems to be well insulated from the financial turbulence emerging from the western economies. The Indian banking industry is well placed as compare to their banking industries western counterparts which are depending upon government bailout and stimulus packages. The strong economic growth in the past, low defaulter ratio, absence of complex financial products, regular intervention by central bank, proactive adjustment of monetary policy and so called close banking culture has favored the banking industry in India in recent global financial turmoil. Although there will no impact on the Indian banking system similar to that in west but the banks in India will adopt for more of defensive approach in credit disburs al in coming period. In order to safe guard their interest, banks will follow stringent norms for credit disbursal. There will be more focus on analyzing borrower financial health . A nation with 1 billion plus, India is the fastest growing country in terms of population and soon to overtake China as worlds largest populated country. The discerning impact on the over-stretched limited resources explains why India always tends to be deficient in infrastructure and opportunity. The largest economy of the world often frustrated researchers, as there was no single predictable pattern of the market; the multiplicity of government regulations and widespread government ownership had always kept investors away from exploring the vast Indian market. However, with India being liberalised today, banking intermediation has been playing a crucial role in economic development through its credit channel. Foreign banks have entered the soil but that has not yet posed a threat to the vast network of public sector banks that still conduct 92% of banking business in India. Banking in India has undergone a major revamp. It has come a long way since its creation which dates back to the British era. The present banking systems has come into place after many transformations from the Older systems. Against this background the present chapter deals with the evolution of the Indian Banking systems, the various reforms that has been made to make banks more effective, the role of private and foreign sector banks and last the challenges the Indian banks faces in the New Millennium . The banking system is central to a nations economy. Banks are special as they not only accept and deploy large amounts of uncollateralised public funds in a fiduciary capacity, but also leverage such funds through credit creation. In India, prior to nationalisation, banking was restricted mainly to the urban areas and neglected in the rural and semi-urban areas. Large industries and big business houses enjoyed major portion of the credit facilities. Agriculture, small-scale industries and exports did not receive the deserved attention. Therefore, inspired by a larger social purpose, 14 major banks were nationalised in 1969 and six more in 1980. Since then the banking system in India has played a pivotal role in the Indian economy, acting as an instrument of social and economic change. The rationale behind bank nationalisation has been succinctly put forth by eminent bankers: Many bank failures and crises over two centuries, and the damage they did under laissez faire conditions; the needs of planned growth and equitable distribution of credit, which in privately owned banks was concentrated mainly on the controlling industrial houses and influential borrowers; the needs of growing small scale industry and farming regarding finance, equipment and inputs; from all these there emerged an inexorable demand for banking legislation, some government control and a central banking authority, adding up, in the final analysis, to social control and nationalisation (Tandon, 1989). Post nationalisation, the Indian banking system registered tremendous growth in volume. Despite the undeniable and multifold gains of bank nationalization, it may be noted that the important financial institutions were all state owned and were subject to central direction and control. Banks enjoyed little autonomy as both lending and deposit rates were controlled until the end of the 1980s. Although nationalisation of banks helped in the spread of banking to the rural and hitherto uncovered areas, the monopoly granted to the public sector and lack of competition led to overall inefficiency and low productivity. By 1991, the countrys financial system was saddled with an inefficient and financially unsound banking sector. Some of the reasons for this were (i) high reserve requirements, (ii) administered interest rates, (iii) directed credit and (iv) lack of competition (v) political interference and corruption. As recommended by the Narasimham Committee Report (1991) several reform mea sures were introduced which included reduction of reserve requirements, de-regulation of interest rates, introduction of prudential norms, strengthening of bank supervision and improving the competitiveness of the system, particularly by allowing entry of private sector banks. With a view to adopting the Basel Committee (1988) framework on capital adequacy norms, the Reserve Bank introduced a risk-weighted asset ratio system for banks in India as a capital adequacy measure in 1992. Banks were asked to maintain risk-weighted capital adequacy ratio initially at the lower level of 4 per cent, which was gradually increased to 9 per cent. Banks were also directed to identify problem loans on their balance sheets and make provisions for bad loans and bring down the burgeoning problem of non-performing assets. The period 1992-97 laid the foundations for reform in the banking system (Rangarajan, 1998). The second Narasimham Committee Report (1998) focussed on issues like strengthening of th e banking system, upgrading of technology and human resource development. The report laid emphasis on two aspects of banking regulation, viz., capital adequacy and asset classification and resolution of NPA-related problems. Commercial banks in India are expected to start implementing Basel II norms with effect from March 31, 2007. They are expected to adopt the standardised approach for credit risk and the basic indicator approach for operational risk initially. After adequate skills are developed, both at the banks and at the supervisory levels, some banks may be allowed to migrate to the internal rating based (IRB) approach (Reddy 2005). At present, banks in India are venturing into non-traditional areas and generating income through diversified activities other than the core banking activities. Strategic mergers and acquisitions are being explored and implemented. With this, the banking sector is currently on the threshold of an exciting phase. Against this backdrop, this paper endeavours to study the important banking indicators for the last 25-year period from 1981 to 2005. These indicators have been broadly grouped into different categories, viz., (i) number of banks and offices (ii) deposits and credit (iii) investments (iv) capital to risk-weighted assets ratio (CRAR) (v) non performing assets (NPAs) (vi) Income composition (vii) Expenditure composition (viii) return on assets (ROAs) and (ix) some select ratios. Accordingly, the paper discusses these banking indicators in nine sections in the same order as listed above. The paper concludes in section X by drawing important inferences from the trends of these di fferent banking parameters. The number of offices of all scheduled commercial banks almost doubledfrom 29,677 in 1980 to 55,537 in 2005. This rapid increase in the number of bank offices is observed in the case of all the bank groups. However, the number of banks in the case of foreign bank group and domestic private sector bank group decreased from 42 in 2000 to 31 in 2005 and from 33 in 2000 to 29 in 2005, respectively. This fall in the number of banks is reflective of the consolidation process and, in particular, the mergers and acquisitions that are the order of the banking system at present (Table 1). BANKING IN THE OLDER DAYS Banking is believed to be a part of Indian society from as early as Vedic age; transition from mere money lending to banking must have happened before Manu, the great Hindu jurist, who had devoted a large section of his work to deposits and advances and also formulated rules for calculating interest on both 1. During the Mogul period indigenous bankers (rich individuals or families) helped foreign trades and commerce by lending money to the business. It was during the East Indian period when agency houses started managing the banking business. The first Joint Stock bank India saw came in 1786 named the General Bank of India followed by the Bank of Hindustan and the Bengal Bank. Only the Bank of Hindustan continued to be in the show until 1906 while the other two disappeared in the meantime. East India Company established three banks in first half of 19th century: the Bank of Bengal in 1809, the Bank of Bombay in 1840, and the Bank of Madras in 1843. Eventually these three banks (which used to be referred to as Presidency Banks) were made independent units and they really did well for almost a century. In 1920, these three were amalgamated and a new Imperial Bank of India was established in 1921. Reserve Bank of India Act was passed in 1934 and finally in 1935, the Central Bank was created and christened as Reserve Bank of India. Imperial Bank was undertaken as State Bank of India after passing the State Bank of India Act in 1955. During the last phase of freedom fighting (Swadeshi Movement) few banks with purely Indian man agement were established like Punjab National bank (PNB), Bank of India (BoI) Ltd, Canara Bank Ltd, Indian Bank Ltd, the Bank of Baroda Ltd, the Central Bank of India Ltd, etc.July 19, 1969 was an important day in the history of Indian banking industry. Fourteen major banks of the country were nationalised and on April 15, 1980 six more commercial private banks were taken over by the Indian government. In the wake of liberalisation that started in the last decade a few foreign banks entered the foray of commercial banks. To date there are around 40 banks of foreign origin that are  operating in the market, like ABN AMRO Bank, ANZ Grindlays Bank, American Express Bank, HSBC Bank, Barclays Bank and Citibank groups to name a few major of them. HISTORY OF INDIAN BANKS: We can identify three distinct phases in the history of Indian Banking. Early phase from 1786 to 1969 Nationalisation of Banks and up to 1991 prior to banking sector Reforms New phase of Indian Banking with the advent of Financial Banking Sector Reforms after 1991. The first phase is from 1786 to 1969, the early phase up to the nationalisation of the fourteen largest of Indian scheduled banks. It was also the traditional or conservative phase of Indian Banking. The advent of banking system of India started with the establishment of the first joint stock bank, The General Bank of India in the year 1786. After this first bank, Bank of Hindustan and Bengal Bank came to existence. In the mid of 19th century, East India Company established three banks The Bank of Bengal in 1809, The Bank of Bombay in 1840, and bank of Madras in 1843. These banks were independent units and called Presidency banks. These three banks were amalgamated in 1920 and a new bank, Imperial Bank of India was established. All these institutions started as private shareholders banks and the shareholders were mostly Europeans. The Allahabad Bank was established in 1865. The next bank to be set up was the Punjab National Bank Ltd., which was established with its headquarters at La hore in 1894 for the first time exclusively by Indians. Most of the Indian commercial banks, however, owe their origin to the 20th century. Bank of India, Central Bank of India, Bank of Baroda, the Canara Bank, the Indian Bank, and the Bank of Mysore were established between 1906 and 1913. The last major commercial bank to be set up in this phase was the United Commercial Bank in 1943. Earlier the establishment of Reserve Bank of India in 1935 as the central bank of the country was an important step in the development of commercial banking in India. The history of joint stock banking in this first phase was characterised by slow growth and periodic failures. There were as many as one thousand one hundred banks, mostly small banks, failed during the period from 1913 to 1948. The Government of India concerned by the frequent bank failures in the country causing miseries to innumerable small depositors and others enacted The Banking Companies Act, 1949. The title of the Act was changed as Banking Regulation Act 1949, as per amending Act of 1965 (Act No.23 of 1965). The Act is the first regulatory step undertaken by the Government to streamline the functioning and activities of commercial banks in India. Reserve Bank of India as the Central Banking Authority of the country was vested with extensive powers for banking supervision. Salient features of the Act are discussed in a separate page/article At the time of Independence of the country in 1947, the banking sector in India was relatively small and extremely weak. The banks were largely confined to urban areas, extending loans primarily to trading sector dealing with agricultural produce. There were a large number of commercial banks, but banking services were not available at rural and semi-urban areas. Such services were not extended to different sectors of the economy like agriculture, small industries, professionals and self-employed entrepreneurs, artisans, retail traders etc. DRAW BACK OF INDIAN BANKING SYSTEM BEFORE NATIONALISATION Commercial banks, as they were privately owned, on regional or sectarian basis resulted in development of banking on ethnic and provincial basis with parochial outlook. These Institutions did not play their due role in the planned development of the country. Deposit mobilisation was slow. Public had less confidence in the banks on account of frequent bank failures. The savings bank facility provided by the Postal department was viewed a comparatively safer field of investment of savings by the public. Even the deficient savings thus mobilised by commercial banks were not channeled for the development of the economy of the country. Funds were largely given to traders, who hoarded agricultural produce after harvest, creating an artificial scarcity, to make a good fortune in selling them at a later period, when prices were soaring. The Reserve Bank of India had to step in at these occasions to introduce selective credit controls on several commodities to remedy this situation. Such cont rols were imposed on advances against Rice, Paddy, Wheat, Other foodgrains (like jowar, millets, ragi etc.) pulses, oilseeds etc. When the country attained independence Indian Banking was exclusively in the private sector. In addition to the Imperial Bank, there were five big banks each holding public deposits aggregating Rs.100 Crores and more, viz. the Central Bank of India Ltd., the Punjab National Bank Ltd., the Bank of India Ltd., the Bank of Baroda Ltd. and the United Commercial Bank Ltd. Rest of the banks were exclusively regional in character holding deposits of less than fifty Crores. Government first implemented the exercise of nationalisation of a significant part of the Indian Banking system in the year 1955, when Imperial Bank of India was Nationalised in that year for the stated objective of extension of banking facilities on a large scale, more particularly in the rural and semi-urban areas, and for diverse other public purposes to form State Bank of India. SBI was to act as the principal agent of the RBI and handle banking transactions of the Union State Governments throughout India. The step w as in fact in furtherance of the objectives of supporting a powerful rural credit cooperative movement in India and as recommended by the The All-India Rural Credit Survey Committee Report, 1954. State Bank of India was obliged to open an accepted number of branches within five years in unbanked centres. Government subsidised the bank for opening unremunerative branches in non-urban centres. The seven banks now forming subsidiaries of SBI were nationalised in the year 1960. This brought one-third of the banking segment under the direct control of the Government of India. But the major process of nationalisation was carried out on 19th July 1969, when the then Prime Minister of India, Mrs.Indira Gandhi announced the nationalisation of fourteen major commercial banks in the country. One more phase of nationalisation was carried out in the year 1980, when seven more banks were nationalised. This brought 80% of the banking segment in India under Government ownership. The country entered the second phase, i.e. the phase of Nationalised Banking with emphasis on Social Banking in 1969/70. Chronology of Salient steps by the Government after Independence to Regulate Banking Institutions in the Country 1949: Enactment of Banking Regulation Act. 1955 (Phase I): Nationalisation of State Bank of India 1959 (Phase II): Nationalisation of SBI subsidiaries 1961: Insurance cover extended to deposits 1969 (Phase III): Nationalisation of 14 major banks 1971: Creation of credit guarantee corporation 1975: Creation of regional rural banks 1980 (Phase IV): Nationalisation of seven banks with deposits over 200 crores. Shortcomings in the Functioning of Nationalised Banking Institutions However Nationalised banks in their enthusiasm for development banking, looking exclusively to branch opening, deposit accretion and social banking, neglected prudential norms, profitability criteria, risk-management and building adequate capital as a buffer to counter-balance the ever expanding risk-inherent assets held by them. They failed to recognise the emerging non-performing assets and to build adequate provisions to neutralise the adverse effects of such assets. Basking in the sunshine of Government ownership that gave to the public implicit faith and confidence about the sustainability of Government-owned institutions, they failed to collect before hand whatever is needed for the rainy day. And surfeit blindly indulged is sure to bring the sick hour. In the early Nineties after two decades of lop-sided policies, these banks paid heavily for their misdirected performance in place of pragmatic and balanced policies. The RBI/Government of India has to step in at the crisis-hour to implement remedial steps. Reforms in the financial and banking sectors and liberal re capitalisation of the ailing and weakened public sector banks followed. However it is relevant to mention here that the advent of banking sector reforms brought the era of modern banking of global standards in the history of Indian banking. The emphasis shifted to efficient, and prudential banking linked to better customer care and customer service. The old ideology of social banking was not abandoned, but the responsibility for development banking is blended with the paramount need for complying with norms of prudency and efficiency. Composition of Indian Banking System The Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institutions 2. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress. The need to become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. The unleashing of products and services through the net has galvanized players at all levels of the banking and financial institutions market grid to look into their existing portfolio offering. Conservative banking practices allowed Indian banks to be insulated partially from the Asian currency crisis. Indian banks are now quoting al higher valuation when compared to banks in other Asian countries (viz. Hong Kong, Singapore, Philippines etc.) that have major problems linked to huge Non Performing Assets (NPAs) and payment defaults. Co-operative banks are nimble footed in approach and armed with efficient branch networks focus primarily on the high revenue niche retail segments. The Indian banking has come from a long way from being a sleepy business institution to a highly proactive and dynamic entity. This transformation has been largely brought about by the large dose of liberalization and economic reforms that allowed banks to explore new business opportunities rather than generating revenues from conventional streams (i.e. borrowing and lending). The banking in India is highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% of advances. Indian nationalized banks (banks owned by the government) continue to be the major lenders in the economy due to their sheer size and penetrative networks which assures them high deposit mobilization. The banking system has three tiers. These are the scheduled commercial banks; the Regional rural banks which operate in rural areas not covered by the scheduled banks; And the cooperative and special purpose rural banks. Under the ambit of the nationalized banks come the specialized banking institutions. These co-operatives, rural banks focus on areas of agriculture, rural development etc., unlike commercial banks these co-operative banks do not lend on the basis of a prime lending rate. They also have various tax sops because of their holding pattern and lending structure and hence have lower overheads. This enables them to give a marginally higher percentage on savings deposits. Many of these cooperative banks diversified into specialized areas (catering to the vast retail audience) like car finance, housing loans, truck finance etc. In order to keep pace with their public sector and private counterparts, the co-operative banks too have invested heavily in information technology to offer high-end computerized banking services to its clients. Given below is the total list of banks operating in India. SCHEDULED AND NON SCHEDULED BANKS There are approximately Eighty scheduled commercial banks, Indian and foreign; almost Two Hundred regional rural banks; more than Three Hundred Fifty central cooperative banks, Twenty land development banks; and a number of primary agricultural credit societies. In terms of business, the public sector banks, namely the State Bank of India and the nationalized banks, dominate the banking sector.India had a fairly well developed commercial banking system in existence at the time of independence in 1947. The Reserve Bank of India (RBI) was established in 1935. While the RBI became a state owned institution from January 1, 1949, the Banking Regulation Act was enacted in 1949 providing a framework for regulation and supervision of commercial banking activity. The first step towards the nationalisation of commercial banks was the result of a report (under the aegis of RBI) by the Committee of Direction of All India Rural Credit Survey (1951) which till today is the locus classicus on the subject. The Committee recommended one strong integrated state partnered commercial banking institution to stimulate banking development in general and rural credit in particular. Thus, the Imperial Bank was taken over by the Government and renamed as the State Bank of India (SBI) on July 1, 1955 with the RBI acquiring overriding substantial holding of shares. A number of erstwhile banks owned by princely states were made subsidiaries of SBI in 1959. Thus, the beginning of the Plan era also saw the emergence of public ownership of one of the most prominent of the commercial banks. The All-India Rural Credit Survey Committee Report, 1954 recommended an integrated approach to cooperative credit and emphasised the need for viable credit cooperative societies by expanding their area of operation, encouraging rural savings and diversifying business. The Committee also recommended for Government participation in the share capital of the cooperatives. The report subsequently paved the way for the present structure and composition of the Cooperative Banks in the country There was a feeling that though the Indian banking system had made considerable progress in the 50s and 60s, it established close links between commercial and industry houses, resulting in cornering of bank credit by these segments to the exclusion of agriculture and small industries. To meet these concerns, in 1967, the Government introduced the concept of social control in the banking industry. The scheme of social control was aimed at bringing some changes in the management and distribution of credit by the commercial banks. The close link between big business houses and big banks was intended to be snapped or at least made ineffective by the reconstitution of the Board of Directors to the effect that 51 per cent of the directors were to have special knowledge or practical experience. Appointment of whole-time Chairman with special knowledge and practical experience of working of commercial banks or financial or economic or business administration was intended to professionalise t he top management. Imposition of restrictions on loans to be granted to the directors concerns was another step towards avoiding undesirable flow of credit to the units in which the directors were interested. The scheme also provided for the take-over of banks under certain circumstances. Political compulsion then partially attributed to inadequacies of the social control, led to the Government of India nationalising, in 1969,fourteen major scheduled commercial banks which had deposits above a cut-off size. The objective was to serve better the needs of development of the economy in conformity with national priorities and objectives. In a somewhat repeat of the same experience, eleven years after nationalisation, the Government announced the nationalisation of seven more scheduled commercial banks above the cut-off size. The second round of nationalisation gave an impression that if a private sector bank grew to the cut-off size it would be under the threat of nationalisation. From the fifties a number of exclusively state-owned development financial institutions (DFIs) were also set up both at the national and state level, with a lone exception of Industrial Credit and Investment Corporation (ICICI) which had a minority private share holding. The mutual fund activity was also a virtual monopoly of Government owned institution, viz., the Unit Trust of India. Refinance institutions in agriculture and industry sectors were also developed, similar in nature to the DFIs. Insurance, both Life and General, also became state monopolies. REFORM MEASURES The major challenge of the reform has been to introduce elements of market incentive as a dominant factor gradually replacing the administratively coordinated planned actions for development. Such a paradigm shift has several dimensions, the corporate governance being one of the important elements. The evolution of corporate governance in banks, particularly, in PSBs, thus reflects changes in monetary policy, regulatory environment, and structural transformations and to some extent, on the character of the self-regulatory organizations functioning in the financial sector. Policy Environment During the reform period, the policy environment enhanced competition and provided greater opportunity for exercise of what may be called genuine corporate element in each bank to replace the elements of coordinated actions of all entities as a joint family to fulfill predetermined Plan priorities. Greater competition has been infused in the banking system by permitting entry of private sector banks (Nine licences since 1993), and liberal licensing of more branches by foreign banks and the entry of new foreign banks. With the development of a multi-institutional structure in the financial sector, emphasis is on efficiency through competition irrespective of ownership. Since non-bank intermediation has increased, banks have had to improve efficiency to ensure survival. REGULATORY ENVIRONMENT Prudential regulation and supervision have formed a critical component of the financial sector reform programme since its inception, and India has endeavored to international prudential norms and practices. These norms have been progressively tightened over the years, particularly against the backdrop of the Asian crisis. Bank exposures to sensitive sectors such as equity and real estate have been curtailed. The Banking Regulation Act 1949 prevents connected lending (i.e. lending by banks to directors or companies in which Directors are interested). Periodical inspection of banks has been the main instrument of supervision, though recently there has been a move toward supplementary on-site inspections with off-site surveillance. The system of Annual Financial Inspection was introduced in 1992, in place of the earlier system of Annual Financial Review/Financial Inspections. The inspection objectives and procedures, have been redefined to evaluate the banks safety and soundness; to appraise the quality of the Board and management; to ensure compliance with banking laws regulation; to provide an appraisal of soundness of the banks assets; to analyse the financial factors which determine banks solvency and to identify areas where corrective action is needed to strengthen the institution and improve its performance. Inspection based upon the new guidelines have started since 1997. SELF REGULATORY ORGANIZATIONS India has had the distinction of experimenting with Self Regulatory Organisations (SROs) in the financial system since the pre-independence days. At present, there are four SROs in the financial system Indian Banks Association (IBA), Foreign Exchange Dealers Association of India (FEDAI), Primary Dealers Association of India (PDAI) and Fixed Income Money Market Dealers Association of India (FIMMDAI). INDIAN BANKS ASSOCIATION The IBA established in 1946 as a voluntary association of banks, strove towards strengthening the banking industry through consensus and co-ordination. Since nationalisation of banks, PSBs tended to dominate IBA and developed close links with Government and RBI. Often, the reactive and consensus and coordinated approach bordered on cartelisation. To illustrate, IBA had worked out a schedule of benchmark service charges for the services rendered by member banks, which were not mandatory in nature, but were being adopted by all banks. The practice of fixing rates for services of banks was consistent with a regime of administered interest rates but not consistent with the principle of competition. Hence, the IBA was directed by the RBI to desist from working out a schedule of benchmark service charges for the services rendered by member banks. Responding to the imperatives caused by the changing scenario in the reform era, the IBA has, over the years, refocused its vision, redefined its role, and modified its operational modalities. FOREIGN EXCHANGE DEALERS ASSOCIATION OF INDIA (FEDAI) In the area of foreign exchange, FEDAI was established in 1958, and banks were required to abide by terms and conditions prescribed by FEDAI for transacting foreign exchange business. In the light of reforms, FEDAI has refocused its role by giving up fixing of rates, but plays a multifarious role covering training of banks personnel, accounting standards, evolving risk measurement models like the VaR

Heroism, Magic and Retribution in Lord of the Rings and The Hobbit Essa

Heroism, Magic and Retribution in Lord of the Rings and The Hobbit   A fantasy is an imaginary world where all things imaginable can be brought to life. J.R.R Tolkien portrayed fantasy through his use of skilled craftsmanship and a vivid imagination, which was presented in each piece of literature he wrote. In Tolkien's two stories The Hobbit and The Lord of the Rings we see the theme of fantasy brought to life through three essential elements, heroism, magic and retribution. Heroism is shown through the character's courage and bravery in situations where conflict arises and this enables them to be seen in a new light. Magic is a form of extraordinary power seemingly through a supernatural force; it is used in a combination of combat and mystical items to aid the companions on their journey. Retribution is paid to the evil forces for the wrongs society had to endure while they were allowed to dominate. This system allows opportunity for physical and mental development in the characters and the aspect of fantasy to come to life. During the character's quest, weather they were headed to the Lonely Mountains or to the Cracks of Doom, they always experienced a form of heroism. In the story The Hobbit, we see heroic deeds being accomplished by the main character Bilbo. This occurs when the companions do battle with giant venomous spiders in Mirkwood forest. Bilbo finds depth and strength in his nature that he was surprised was there and smote these villainous creatures all on his own, saving his friends and adding to his stature among those in the group. "Somehow the killing of the giant spider, all alone by himself in the dark without the help of the wizard or the Dwarves or anyone else, made a great difference to Mr. Baggin... ... fully understand the characters, as well as the major changes both physically and mentally which allow the characters to successfully complete their task to dominate over the forces of evil. Works Cited Chance, Jane The Lord of the Rings: The Mythology of Power. New York, Twayne. 1992. Murray, Roxane Farrell. "The Lord of the Rings as Myth." Unpublished thesis. The University of Georgia, Athens, GA, 1974. Tolkien, J. R. R. The Hobbit. New York: Ballantine Books, 1993. Tolkien, J. R. R. The Lord of the Rings. New York: Ballantine Books, 1997. Tyler, J.E.A. The Tolkien Companion. New York: St. Martin's Press, 1976. Urang, Gunnar. "J. R. R. Tolkien: Fantasy and the Phenomenology of Hope" Fantasy in the Writing of J. R. R. Tolkien. United Press, 1971 Wood, Ralph C. "Traveling the one road: The Lord of the Rings." The Century Feb. 97: 208(4).

Boston Beer Company Essay

1. Evaluate the attractiveness of the craft beer segment relative to the market space occupied by the traditional â€Å"Big Three†. (tip: use the Five Forces framework). a. High Threat of new competition: over 600 of specialty beer companies were founded over the past five years, approximately 40% growth each years. In addition, the existence of contract brewing companies lead to low entry cost. b. High substitution: The attractiveness of craft brewing industry are majorly based on unique styles and flavors of beer. there are many different brands and styles of beer so the actual threat of substitutes is high. c. The intensity of competitive rivalry is also high: while there is a major growth of new entry, the market size shows little growth. This creates tremendous competitive pressures among the industry. d. Bargaining power of buyers: Switching cost for buyers are low, as there are many different substitution and options. companies has to consistently maintain high quality in order to retain customers. e. Bargaining power of suppliers: switching cost for suppliers are high for the traditional Big Three, as their supplies are tied to their own brewies. Craft brewing companies has the option of switch breweries in a relatively low cost, as the suppliers know they have options to supply other breweries. This allows them to charge higher prices than the big three. 2. Evaluate Boston Beer’s business model relative to Redhook and Pete’s, comparing their business models with respect to specific activities such as procurement, brewing, distribution, and marketing. BBC’s strategy of producing the highest quality of products, the company pursued four initiatives: high quality standards, contract brewing, intensive sales and marketing, and product line innovations. Unlike BBC and Pete’s, redhook relies on its own breweries. Redhook also established a strategic alliance with Anheuser-Busch whereby Redhook products were sold through the nation-wide network of 700 distributorships in exchange for a 25% equity stake in the company. Similar to BBC, Pete’s operates on a contract brewing basis and stress heavily on marketing. In retrospect, BBC intended to remain a contract brewer exclusively, capitalizing on lower overhead and transportation costs while continuing to invest heavily in its branded products. Redhook believed that its long-term growth and profitability were best served by assembling the largest company-owned production capacity of any domestic craft brewer, guaranteeing production capacity in more than one geographic region of the United States. Redhook also made a substantial investment in distribution, gaining access to Anheuser Busch’s nation-wide network of resellers. Pete’s, on the other hand, appeared to be following a combination of these two strategies by producing its products at both company-owned and third-party breweries. 3. How realistic analysts’ long-term growth forecasts (25% to 40% for the craft-brewing segment)? Based on the porter five forces analysis, the craft brewing segment has many advantages over the traditional big three, which explains the 40% growth rate. However the large number of new entries companies has already created a tremendous amount of competitions among its own, which retard the long term growth in my opinion and makes the forecasts of 25% to 40% seem unrealistic. 4. What do you recommend to Boston Beer? a. While the US market size remains somewhat stable. By exporting globally, will introduce BBC to new markets and additional sales b. Forming strategic alliance will help combat the increasing competition among industries.

Economic Issues Simulation Paper

As a representative of Castor Insurance, the job is to maximize profit and minimize risk for the company. Healthcare is a high in demand good that the consumers of any job wants and needs to have. So it is very important to chose the right kind of healthcare for your employees. The two companeys in question Constructit and E-editors need to choose a well balanced health insurance plan that will work for there group of people. I am Jamie Ruth, I am the Vice President, Strategy and Financial Planning at Castor Collins. My duties include pricing plans and setting insurance premiums for our potential clients. Castor Collins was approached by two companies looking for employer insurance and both companies have a set rate their employees are able to pay for premiums since both groups will have to pay for his or her own insurance. The first company is Constructit that consist of 1,000 people and E-Editors that consist of 1,600 people. It is up to my team to come up with a plan the meets Constructit $4,000 max on premium and E-editors max of $4,500 premium. Our task is to keep revenue maximized and risk to a minimum by choosing one of our three plans, which are Castor Standard, Castor Enhanced and our customized plan called Castor Enhanced Minor to suit Constructit the company I have chosen. Demographics of Constructit Constructit consist of 550 men between the ages of 26 to 45 and 450 women between the ages of 26 to 42. At Constructit 32% of the workforce’s duties involve excessive physical activities. This can cause some health risk with these employees. Whereas 25% of the workforce’s duties involve modest physical activities and the remaining 43% of the workforce’s duties involve inactive activities. With the modest activity there is always a chance an injury could happen. The inactive employees mainly desk employee are not immune from injury either. Married employees consist of 60% of the workforce. The employees at Constructit are not all in perfect health. Out of 1000 employees 170 men and 210 women 38% of the workforce has no major health problems. With almost 10% of the workforce 55 men and 36 that are smokers. The majority of the workforce misses work due to injuries, respiratory system diseases, digestive disorders, migraine, and allergic conditions. Health Concerns In our investigation of the health demographics in Constructit we discovered the following health concerns. Almost half of the employees are obese, 198 men and 192 women which adds up to 39% of the workforce which in itself is a major concern. Obesity can cause High Cholesterol the second highest medical condition within this group meaning 19%, 101 men and 95 women. As well as high blood pressure is another cause of health concern with 88 men and 105 women, 19% of the workforce. We also discovered many suffer from an allergy which affects 92 men and 85 women 17% overall. Many of the employees suffer from migraines 16%, 75 men and 93 women. Although only 13% of the employees 78 men and 57 women Respiratory Diseases is still a cause of concern. The Last medical condition we discover was digestive disorders at 8% 52 men and 32 women. Now our task was to develop a plan and stay within our $4000 premium limit. Plans Here at Castor Collins we have two plans that could possibly fit the needs of Constructit. One is Castor Standard which does not cover preexisting medical conditions and the other is Castor Enhanced which does cover preexisting medical conditions. Helen one of my team members suggests we offer Constructit Castor Enhanced and eliminates a few services that have high utilization. Adam says or we could choose not to insure either group if our risk outweighs the profits. In our evaluation the risk, anticipated cost, and cost-effectiveness are different for both plans. We did not choose Castor Standard because for one it did not cover preexisting condition. The premium is within payment range enrollees can pay and our profits would be higher. The cost associated with Castor Collins providing services to Constructit does not include any copayment the enrollee has to pay. For example for inpatient hospital services for Standard the enrollee pays $114 where in Enhance they pay $144. For emergency physician or hospital care Standard is $310 where Enhances is $388. For outpatient services like physician visits the in Standard the enrollee would pay $56 and in the Enhanced he or she would pay $70. If the enrollee was to need outpatient surgery for standard he or she would pay $305 where with enhanced the cost is $381. Here is the expected utilization of services when Castor Standard or Castor Enhanced is provided to Constructit. On average utilization of the services in the population of color scheme are for the age group of 26 through 45. Inpatient hospital services are 3% for standard and 4% for enhanced with the annual average is 6% for standard and 8% for enhanced with the surgical benefits the same. For emergences the expected utilization is 6% and the annual average is the same for standard whereas for enhanced the expected utilization is still 6% however the annual average is 8% for inpatient services. In standard most of the expected utilization is anywhere from 3% to 10% whereas the annual average is 6% for standard. Outpatient services the expected utilization is anywhere from 3% to 10% and the average annually is 6%. For enhanced the expected utilization norm is 4 to 9% and with enhanced the norm is 6% for standard and enhanced is anywhere from 4 to 12%. Plan Choice For Constructit we decided to go with Castor Enhanced so we could modify it so we were able to stay within the $4000 premium prices range. Even though the copay to the enrollee is higher the benefits are revenue for us is higher. We were able to keep the premium below $4,000; the premium is $3,943 making our profit a $3. 94 million and only eliminated obesity treatment. To keep cost and risk low we decided not to include Obesity treatment. To include this service the premium would have exceeded what the enrollees would be able to pay. All other services are intact. Castor Collins earning is high and is adequate to cover the risk insuring Constructit. Services such as substances abuse treatment the expected utilization is low. Even with Castor Enhanced Minor covering preexisting medical conditions, the risk are low and the earnings could be high. Copays for services such as preventative services, diagnostic services, and chiropractic care are at 8% rate. Conclusion Our task was to evaluate the company’s demographics and develop an adequate health care plan that suits Constructit. With Castor Enhanced the premiums are below $4,000 which them enrollee can pay and still have comparable health coverage that cover preexisting medical conditions. Utilization annual average is mostly 8%. Copays are higher but the benefits are higher as well. This was a difficult task but I believe we did what was expected of us in supplying health coverage for Constructit.

Pinters The Birthday Party essays

Pinter's The Birthday Party essays One recurring motif in Harold Pinters work is the image of the single room. Pinter himself spoke of this form as being one of the most pure for the theater. For Pinter, one room, a few characters, and a door, and the fear of what will come through the door next is all that is necessary for a good play: Two people in a room- I am dealing a great deal of the time with this image of two people in a room. The curtain goes up on the stage, and I see it as a very potent question: What is going to happen to these two people in the room? Is someone going to open the door and come in? (Esslin 235) Pinters first full-length play, The Birthday Party, perfectly embodies this single room purity. The play takes place in a single room, whose occupants are threatened by forces or people whose precise intentions neither the characters nor the audience can define. The Birthday Party, was produced in 1958 at the Arts Theater in Cambridge. The play centers around Stanley, an apathetic man in his thirties who has found refuge in a dingy seaside boarding house which has apparently had no other visitors for years. Meg, one of the owners, cares for Stanley in a very motherly fashion that at times appears to border on incest. Petey, her husband, is a kind old man who rarely speaks and is employed as a deck chair attendant. Little is revealed about Stanleys past besides the fact that he was once a piano player and may or may not have once had a concert. This ambiguity becomes the driving force of the entire play. In the middle of the first act, the comic duo of Goldberg and McCann arrives, and it soon becomes clear that they are after Stanley. Like Samuel Beckett, Pinter refuses to provide rational explanations for the actions of his characters. Are the two emissaries of some secret organization Stanley has betrayed? Are they male nurses sent from an asylum from which Stanley has escaped? This question is never answer...

Low-Cost Gift Ideas for College Students

Low-Cost Gift Ideas for College Students If youre like most college students, buying gifts present a complicated dilemma: Youd like to give nice presents but you are, after all, a college student trying to live on a budget. So how can you balance wanting to give nice presents with the limits of your bank account? Luckily, there are ways to give low-cost gifts without coming across as cheap. 8 Low-Cost Gift Ideas for College Students Print out and frame a nice picture. With everything being digital these days, try to remember the last time someone gave you a printed-out picture that you can hang on your wall and how nice that present was (or would be!). If youre really short on cash, print something at the highest quality available on your printer and make a nice frame to match. Give a simple college-themed gift. While the $60 sweatshirts in the campus bookstore are pretty nice, they might also be out of your budget. See what else you can find that celebrates your time in school while costing a little less. Keychains, bumper stickers, t-shirts on the clearance rack (will your cousin really know?), plastic cups, and lots of other presents can be had for under $10 and even under $5, if you really spend some time looking. Give the gift of time. Money may be in tight supply for you, but time may not be especially if you need a gift for the holidays when youre home on break. Consider planning a nice walk with your mom, ​volunteering with your dad, hanging out with your friend at his work one afternoon, or even babysitting for your parents so they can get some time to themselves. Make something from scratch. Nearly everyone has some kind of creative talent. Think about what you do best and run with it. Can you write a few poems? Paint a picture? Mold something out of clay? Take some awesome photographs? Make something from wood? Write a song? Record yourself singing your mothers favorite tunes? Dont sell yourself short as a great source of gifts you can make completely on your own. Put together a piece of your life at college. It doesnt have to be fancy to be effective. If, say, your grandmother never had the chance to go to college, put together a shadow box or collage of images from your time in school. You can collect things like stickers, fall leaves, a page from the course catalog, or articles from the school paper to give her a piece of what your college life is like. Make a memory box for an old friend or family member. You can probably find a nice little box somewhere on campus or at a local big box or drug store. Cut up some nice pieces of paper and write a cherished memory of you and the person youre giving your gift to; fold them over once or twice; Then write a nice card that explains the gift and says how often they can unwrap one of the little memories in the box (once a week? once a month?) It can be a great trip down memory lane for you and a very personal, meaningful gift for an old friend or beloved family member. Frame a design you make. Who says only a photograph can go in a picture frame? Start with a piece of paper and get creative. Print or cut out quotes about the importance of education, snip headlines from your school paper, take (or sketch) a picture of your school as long as you put together something with a similar theme (e.g., your campus), its hard to make a homemade gift like this look bad. Let your creativity flow without worrying about the cost. Switch up a usual gift into something different. Dinner and a movie is a pretty classic gift for a girlfriend, boyfriend, or even a parents birthday. But if your money is tight, you can switch things up to have an equally good time without the high cost. Consider, for example, going to breakfast and a movie. The food bill will be cheaper, your movie will likely be a matinee (and cheaper than an evening film), and you and the person you take will have a unique experience, too.

Analyze the Learner

Analyze the Learner Analyze the Learner General characteristics: I attend the HacÄ ± Ãâ€"mer Tarman Anatolian high school in class 11-FC. There are 27 students, 16 of them are boy the remains are girl. Although their learning abilities are nearly the same because they took the same exam before enter this school, they have some differences in their cognitive levels. So from time to time I have to use different methods to attract their attention. Student’s socioeconomic levels are different and this affects their achievement. Because students that have low economic status could not get private lessons. In addition that while giving research project I realized their economic conditions. Students are aware of the importance of lecture because they know the university entrance exam are very important for their future life so they do not miss any single hour. Entry competencies: In order to understand the whether the students have necessary prerequisites and knowledge I will make a pretest to un derstand these. For example before starting acid base concept students should know some concepts from 9th class. These can be * Matter * Nomenclature of compound * Chemical reactions and calculations * Mole concept * Solutions and molarity And also for achieving these concepts they ought to have these skills mentioned below. * Reading and writing skills * Problem solving skills * Analytical and critical thinking skills * Manipulating laboratory equipment skill * Problem solving skills Learning styles: Students have different multiple intelligences so during the lecture as a instructor I should use different methods in order to motivate the learners. So they can easily the topic. It can be seen that in secondary school students are bored if the teacher use traditional method. However if they use different methods such as demonstration, role play, cooperative learning, they can understand easily, because the concepts are taught in a different manner. In addition to that giving exampl es from daily lives also increase students attention .but most of the teacher us lecturing method to complete the curriculum on time. But according tro me understand the topic is more important to complete the topic. So I will use analogy to teach the complex topic in an easy way and also make a demonstration so that students can easily realize what is going on, because of this reason I will prepare a video that is related to the chemistry experiment. And I will give daily life examples so students realized that chemistry is related to our life therefore they are willing to my lecture. State Objectives: The topic is in the K-10 curriculum. There are some requirements for the instruction. These include the previous knowledge from 9th grade level. At the end of the lesson 10th grade students will be able to have the following objectives. Ø General objective : Students understand the definition of acid and bases o Behavioral objectives:  § To know the meaning of acids and bases à ‚ § Describe Arrhenius acid base definition  § Describe Bronsted acid base definition  § Describe Lewis acid base definition  § To know the differences between acid base definitions Ø General objective : Students predict the use of acid and bases in daily life

Falling Oil Prices Threaten Houston Building Boom Essay - 17

Falling Oil Prices Threaten Houston Building Boom - Essay Example Ideally, unemployment has a direct and indirect impact on other industries since it reduces the earnings and purchasing power of the unemployed. I believe the unemployment derived from the falling oil prices will have detrimental effects on the housing industry especially in Houston (Brown 1). Most of the people fired or prone to firing by energy companies in the U.S come from Houston. Ideally, savings from energy costs would increase consumer spending, create more jobs, and improve earnings that would enable more people to buy homes (Brown 1). As such, the housing industry would benefit indirectly from oil savings. Indeed, reduced oil prices would encourage young buyers to join the housing market thus raising the demand for houses in Houston. However, the continued drop in oil prices and the resultant unemployment changes the above economic dynamics and assumptions. Having flourished in Houston when the energy sector was experiencing immense growth, housing developers in Houston are now feeling the heat of the falling oil prices in America. Indeed, the demand for offices is on a downward trend in Houston subject to the anxiety, uncertainty, and limits derived from the oil prices that have been falling since June 2014 (Brown 1). Developers planned and started many of the buildings in Houston in 2014 when there were high and stable oil prices (Brown 1). Indeed, by the end of last year, construction in many buildings was on an advanced stage raising questions on the uncertain demand for these building units. The housing industry has created many jobs for the builders at building sites and manufacturers in concrete and steel companies. However, the announcement by energy companies to fire about 23,000 employees with a significant number coming from Houston demeans the imminent supply of office units in Houston (Brown 1).

The Curious Incident of the Dog in the Night-Time by Mark Haddon Essay

The Curious Incident of the Dog in the Night-Time by Mark Haddon - Essay Example The life of Christopher, a boy who has a problem with understanding logic due to a health condition has been used to express the life of many other people who might be suffering from various issues in life. It shows that people are prone to various conditions, which eventually lead them to various destinations. Christopher’s mind-set is logical and scientific in that he sees life as a puzzle that can be circumnavigate through logic and calculated decisions. As a result of this, he fails to comprehend certain simplicities that seen reasonable to other human beings. As a student, and from a stable parental background, I feel the pain that goes within Christopher’s mind when he cannot understand how a dog is stone dead (Haddon, Ch 1). This is after he discovered Wellington’s dead corpse in the owner’s lawn. This point leads back to the medical condition that is affecting him. He cannot just understand simple issues until they are explicitly explained to him. Comparing this to other individuals like myself, I feel that people should not take all things for granted, and should appreciate whatever little or much one can have freely in life. Christopher did not choose the condition and neither did he choose to live with a single parent, even when the other parent was alive. Personally, I did not have control over my current situation but am just lucky to be the way I am. In the quest of finding out Wellington’s murderer, Christopher unveils various twists and turns in his parents’ life, including his mother’s whereabouts. For a child his age, I consider this a painful experience that even makes him pass out. Reflecting the events, as they unfolded upon my life, I consider life as cruel to underserving individuals, a reason to make me appreciate whichever circumstances I pass through. I have grown knowing my two parents, and would consider my upkeep as brilliant. This cannot be taken as mere luck but as matter

Human resource management1 Essay Example | Topics and Well Written Essays - 1000 words

Human resource management1 - Essay Example 2003, 17-22). Linkage is related to the amount of contact amongst the organization's planned planners, the HR department, and the managers who will be accountable for carry out the plans. Linkages can variety from minimal (groups working separately) to full incorporation (groups working interdependently), but they are classically mix together. For example, information pertaining to hiring may flow together ways, whereas information regarding financial support of projects might be handed down from the top management to HR. The suitable degree of connection depends on the business climate, organizational wants, and business strategy; however, a few linkage among HR and management is generally essential. A disconnect between planners and managers can effortlessly derail the planning and completion processes (Alavi, M., and Leidner, 2001, 107-136). This is not only theoretically dangerous, but also empirically dubious, and the claims have been extensively criticized elsewhere (Thompson and Ackroyd 1995; Thompson and Findlay 1999; Smith and Thompson 1998). So much emphasis is put on managerial discourses and systems that there is a consistent confusion between the technological potential for surveillance and the managerial capacity to monitor and manipulate, and between managerial discourses about correct behavior and the reality of continued misbehavior. Not only are intent and outcome very different in the workplace, there is plenty of case-study evidence that employees are aware of the gap between managerial rhetoric and action, often seeking to exploit it for their own ends. In the light of critical views of Tom Redman & Adrian Wilkinson, The stipulation of lots of social services occurs inside a structure that has been termed the "hollow state," an approach to policy completion that relies upon private or nonprofit organizations to bring certain public goods (Milward, Provan, and Else 1993). The "hollowness" of this system is needy upon the degree to which services are put into practice by nongovernmental organizations and measured along a diversity of dimensions counting the control retained by one or further public agencies, the degree of designation to nonpublic actors, the efficiency of coordination, and mechanisms to assess the delegated service delivery. When nonprofit organizations obtain contracts or funding to deliver public goods or services, the delegating agency assumes a enough level of capacity to put into practice the project or deliver the service. Though, if the nonprofit community-based organizations are too incomplete in capacity to c arry out their grants or contracts, then a disconnect occurs in the empty state. This disconnect may obvious itself either in the difference of capacity among the public and nonprofit sectors, or in the lack of capability in community-based nonprofit organizations (Tom Redman & Adrian Wilkinson, 2006). In the light of critical views of Karen Legge. Cross-national differences in institutional structures are probable to generate management practices that diverge from country to country, in spite of the fact

UK Film Industry in 2007 Essay Example | Topics and Well Written Essays - 1000 words

UK Film Industry in 2007 - Essay Example 2. Weaknesses - Funding is the most pressing problem in production. Most companies rely on public funding which is very limited. Distribution as a means to cover costs and acquire profit is not significantly considered. What happens is, initially, rights are often pre-sold in order to get the film made resulting to no proportionate rewards for the producers in the event of a success (Is There a British Film Industry). Thus, UK films may be a success at the box office, but little of the revenue reaches the producer and the net profit is too minimal to re-invest into another production (UK Film Industry Structure). Continuing the cycle is very difficult 3. Opportunities - The opportunity to become the second largest producer of films, after the U.S. is open for the UK Film Industry to take on as a challenge. The chance is there primarily because of the talent pool or the expertise, the technology or the facilities, the English language, the worldwide economic positioning of the country and the inward investment prospects for the Industry. 4. Threats - Film Piracy takes away earnings of producers which hinders production of more movies. Another threat is not keeping up with the Global Market. Policies on Global Distribution to generate funds for production should be highlighted. Otherwise, the Industry will not be able to keep up with other Film Industries. B. The Exhibition Sector 1. Strengths - Exhibition Facilities are ample and technology used is of high caliber. There are currently over 2,000 cinema screens in the UK as compared with 1,800 in Japan but 4,500 in France (UK Film Industry Structure). 2. Weaknesses - This sector is not getting enough support and encouragement from the government and the public sectors. The role of distribution and exhibition has been given insufficient attention in that there have been times when more interest and a wider availability of British films were more evident in the major cities of other countries, like Paris, than in Britain (Harvey and Dickinson). 3. Opportunities - To gain economic viability, Cinemas need not be biased in favor of foreign films particularly U.S. films, but instead maintain a balance of locally made and foreign films to be shown. This could be realized by more media exposure of locally made films, public education, and government support through incentives. 4. Threats - Film Piracy is again a major threat to the exhibition sector because it lessens theatre or cinema attendance, thus affecting company earnings. Another threat is the total dependence of this sector to foreign movies. If efforts are not made to support the showing of locally made films in cinemas, it could eventually lead to a domination of foreign films and a loss of a national identity in the film industry. Analysis There is no doubt that the Film Industry has a great impact on the UK economy. A 2005 Oxford Economic Forecasting Report on the economic contribution of the UK film industry showed that the UK Film Industry in 2004 directly employed 31,000 people and supported a total of 97,500 jobs, contributed 3.1 billion to UK GDP and around 850 million to the Exchequer, put in 800 million to the UK economy via the boost to tourism, and added over 300 million to the turnover of the video/DVD retail and rental