ROLE OF VIRTUAL ORGANIZATIONS Research Paper Example | Topics and Well Written Essays - 1750 words

ROLE OF VIRTUAL ORGANIZATIONS - Research Paper Example Results were as expected and the findings implied that virtual organizations offer a fashionable way of carrying out virtual businesses guaranteeing proper communication between the employees and e-consumers, ensuring low cost management, promising time-saving transactions and assuring a well collaborative environment with safe conduction of e-commerce, all based on some pixels on the computer screen. Current theories focus on the virtual world which is an online imaginary world or cyberspace world where people live imaginary lives, also called the Second Life, in which they establish and maintain businesses and make real money. The business in a virtual world is referred to as virtual business, the product produced is called virtual product, but the money made is real. In a virtual organization (VO), nothing really exists, or exists â€Å"as pixels dancing on the computer screens of people who inhabit the online virtual world† (Hof). Businesses are carried out on personal computers. Businessmen log into their accounts, interact with their employees, get updated about their performances, carry out commerce online, pay salaries using online payment websites, shop online and make sales online. A VO is a complete world in itself, having virtual products, goods and services. It has its own virtual economy which can even let one own a piece of land. The virtual currency can eve n be converted in to real dollars. VOs have made business possible that only exists in somebody’s brains without the need of tables, desks, chairs, offices, buildings, and cups of tea over meetings. Research has shown that VOs also play a major role in carrying out e-commerce, very much similar to real world. There are auction sites where one can place bids or sell something that one owns. One makes payments and gets paid online. There are shopping websites that let you shop whatever you want while sitting in the comfort of

Effect of Policy on the UK Commercial Property Sector

Effect of Policy on the UK Commercial Property Sector This research project intends to assess and critically analyse what the impact, whether positive or negative. The Code for Leasing Business Premises in England and Wales 2007, has had on the commercial property sector from the standpoint of both the landlords and the tenants. It is designed, using primary research to aid the Government in assessing the level of success the Code has had and whether legislation is required to further enforce the protection of small business tenants. It is an interesting topic as the Government has sought to promote greater choice and flexibility in the property and leasing market for some time, but has been unsuccessful, also due to the fact that there are still very few reviews on the topic. The research, undertaken in July 2009 involves an investigation into leasing practice by small business tenants and their landlords, accompanied by secondary research. Structure of the Dissertation: Chapter 1: Introduction to the subject matter; containing the hypothesis, as well as the goals and objectives of the research. Chapter 2: Literature Review; sets out to critically analyse the current literature published on the subject and understand currently established views on the topic. A gap in the knowledge is also identified in the existing published literature. Chapter 3: Research Methodology; provides the methods and an explanation of them, that were used for primary and secondary research in this dissertation. Chapter 4:Research and Analysis; questionnaires and surveys presented in tables and graphs along with their analysis. Interviews unable to be quantified are scrutinized and compared in full. Chapter 5: Conclusion; compares the research with the hypothesis. Deducing its limitations and reliability, as well as whom these conclusions will impact, and any potential additional research that could be carried out. Hypothesis: The introduction of The Code for Leasing Business Premises in England and Wales 2007 has had no influence upon small business properties and their tenants and as a result was unjustifiable. Context and Background information: The Code for Leasing Business Premises in England and Wales 2007 was launched by Yvette Cooper, then Minister for Housing and Planning, on the 28th of March 2007. It set out some key recommendations to those taking or granting new or renewed leases. The code itself comprises of three sections: For the Landlord; a 10 point requirement guide in order for their lease to be compliant. For the Tenant; an explanation of the terms and 37 specific tips. A Model Heads of Terms, made available online. The Code for Leasing Business Premises in England and Wales 2007 is the result of collaboration between commercial property professionals and industry bodies representing both owners (Landlords) and occupiers (Tenants). These include such members as the Association of British Insurers, the British council for offices, the British Property Federation (BPF), the British Retail Consortium, the Federation of small Businesses, The Royal Institution of Chartered Surveyors (RICS), The Law Society of England and Wales, and the Department for Communities and Local Government. It replaced the previous embodiment of the Code, published in April 2002. The Code is voluntary so occupiers should be aware that not all Landlords will choose to offer Code-compliant leases. The Government has felt the need to promote the Code with a continual threat of legislation if it is not adopted this time by the property industry. However the Government takes a keen interest in ensuring the property industry complies with this voluntary Code. Larger business operators are expected to conform to the Code as they have the resources to employ property professionals to act on their behalf. The Code appears to be more aimed at small business tenants seeking to offer guidelines, promoting fairness in commercial leases and aiming to protect small businesses, by ensuring they have the information available to negotiate the most suitable deal. Goals and objectives: Objective One: To investigate small business tenants. A number of questions will be put forward in order to gain information into areas such as, lease terms, tenant satisfaction, and tenant awareness of The Code for Leasing Business Premises in England and Wales 2007. Objective Two: To investigate landlords, how they operate with regard to small business tenants, and what is their view is on The Code for Leasing Business Premises in England and Wales 2007. Objective Three: To gain extensive knowledge into the views of the Chartered Surveyors of The Code, and how The Code for Leasing Business Premises in England and Wales 2007 affects their decisions when advising a client. Objective Four: To assess the primary research gained in objectives One, Two and Three, and discover how, or if decisions made by a chartered surveyor could indirectly affect a small business tenant. Ultimately the aim of this research is to establish that the introduction of The Code for Leasing Business Premises in England and Wales 2007 has had no influence upon small business properties and their tenants and as a result was unjustifiable. While the existing literature discusses the changes in the relatively new Code, there is little information regarding its actual impact upon the industry. Due to the little research done on the new 2007 lease code, this document is intended to gain background information and research on lease practice in the UK, using the Island of Portsea and surrounding areas to determine the amount of business properties and their tenants that have been affected. The only published document comparable to this research is applied to the previous 2002 code and is therefore now outdated. By gathering data using interviews, questionnaires, and exploring further information written on the topic in journals and articles, my aim is to gather sufficient evidence to establish whether my hypothesis is true or false. It is hoped that the research methodology set out in chapter three is adequate enough so as to create valuable research, which until now has not been documented. Chapter 2.Literature Review: Introduction A literature review sets out to critically analyse the current literature published on the subject and understand currently established views on the topic. Secondary research also provides direction to the primary research helping to identify further any unanswered questions. In order to understand the subject, one must first acquire an understanding of the historical nature of business leases in the UK, and why there appears to be a need for market intervention through lease codes. Lease Structure within the UK and its progression. Historical Lease Length: For the purpose of this dissertation, it is necessary to understand the historical nature of a business lease, how they are changing, and what normality in the current marketplace is. The institutional lease also known as the 25 year FRI (full repairing and insuring) lease with upward only rent reviews was standard issue through the 1970s and 1980s. The introduction of more volatile economic conditions led to a change as the longevity of the leases was deemed unrealistic (Lizieri, C., Gibson, V., Crosby, N., Ward, C., 1998). This type of lease has also been described as the backbone of property investment (Hamilton, M. Cheng Lim, L. McCluskey, W., 2006). Whilst the economic climate began to recover in 1995, the expectation would have been that a recovery in the economy and the property market would precipitate a return to the bargaining strengths of landlords and tenants prior to the recession and a return to the terms of occupation which prevailed at that time (Hamilton, M. Cheng Lim, L. McCluskey, W., 2006). However there was a contrasting view to this expectation and a number of reasons are given (Crosby, N., Gibson, V., Murdoch, S., 2002). Firstly, tenants who, after being introduced to more flexible terms were unwilling to return to the institutional lease. Secondly, new accounts procedures forced tenants to show leases on their balance sheet as a liability and therefore highlighted the fact that longer leases financially burdened the tenant in many cases. Research was conducted in 2006 that showed that occupiers are still shifting toward shorter leases in order to prevent themselves from being overexposed to risk. Shorter leases tend to meet the needs of occupiers functioning in a rapidly changing economic environment (Hamilton, M. Cheng Lim, L. McCluskey, W., 2006). 10.93 years was found to be the average lease length from January 2001 to March 2004, among 106 office leases taken in Birmingham, London, Manchester and Belfast. This would appear to prove a large departure from the institutional lease. However, this research does have its limitations. It remains unclear how large the offices used for the survey are. Larger offices are more likely to have tenants that require longer leases, mainly to justify for writing off fit-out and relocation costs (Dickenson, March 2007). If this is applied to this dissertation for example, the focus of the Code for Leasing Business Premises in England and Wales 2007 is upon small business properties and their tenants who are unlikely to have large fit-out costs. Upwards-Only Rent Reviews (UORRs): The UORR is A clause in a lease wherein at a defined given point a rent review will occur. When this arises the rent will either be fixed at either the current rent passing or the open market value, whichever is the highest. As a lease becomes shorter in length, any fluctuations in market conditions are less likely to affect corporate liability. Therefore the lease rent review clauses become increasingly insignificant. A survey conducted in June 2005 by the ODPM (Office of the Deputy Prime Minister) came to conclusion that they had strongly polarised views about whether or not the Government should legislate against UORRs. (Office of the Deputy Prime Minister, June 2005) The government has been considering a ban on UORRs for some time but has still not felt the need to act. A further survey conducted in 2007 by GVA Grimley and the CBI focused on the opinions of corporate tenants. The survey returned only a small majority (57%) in favour of banning them (Cooke, July 2007). Cooke conti nues to comment that firstly this is not a large enough majority to consider a ban, and secondly, the size and sector spread of the survey was significant and there is a recommendation of further research. Any moves to remove UORRs will have a major effect on the security as property as an investment. Cookes view is that as any legislation is unlikely to be retrospective, and therefore a two stage system will be in place, corporate occupiers would not reap any benefit for some time. (Cooke, July 2007). Contingent Liability: There was a strong vote in favour of removing contingent liability, with 83% voting for its abolition (Cooke, July 2007). This high figure suggests that many business occupiers are despondent with their current leases; however they are not forced to sign a lease with this agreement and as the research shows tenants are aware of the liability but appear to do nothing about it. It should be noted that the size of corporate tenants questioned in the research conducted by GVA Grimley is unknown and therefore may offer a poor sample of information for what is required in my research. The Code is positioned to aid smaller tenants who often are unable to afford professional property services. Cooke describes his opinion that corporate occupiers regard it as inequitable that, having assigned a lease to a third party and having received the landlords approval to the transaction, they are required to step back in because of the failure of the assignee several years later. (Cooke, July 2007) If this is a commonplace problem in the market, then this certainly gives good grounds for a new code. 2002 Code of Practice for Commercial Leases (E2): The second edition of the Code of Practice for Leases in England and Wales was published in 2002. Philip Freedman, one of the co-contributors to the 2007 code commented that Although it was felt there had been a significant move toward shorter leases, and lease terms had become more flexible, small business tenants were still poorly informed about property matters and landlords were not offering tenants sufficiently flexible lease terms to match their business needs(Freedman, 2006). Freedman continues to mention that the government was unsatisfied with the continued prominence of upward only rent reviews (UORRs) in longer leases, and was considering outlawing them. The Code introduced in 2002 was very different from its predecessor from 1995 that it replaced. There were no objectives or aims set out in the Code, instead, ten key recommendations to business leases were listed. The first three were to promote open negotiation between parties, and to recommend financial advice on costs of occupation. The other seven points cover particular aspects of a commercial lease (Neil Crosby et al. (2005). The paper Monitoring the 2002 Code of Practice for Commercial Leases, co-written by Neil Crosby at Reading University for the UK government was designed to measure in detail the impact of the 2002 Code. It is similar to my piece of research, although it is now outdated and obsolete for professional consultation. It does however show key research that provides evidence that the 2002 Code was unsuccessful and therefore required change. An interview survey was carried out with an extensive number of chartered surveyors, and also with solicitors involved with conveyance and lease contract negotiation. The perception of property professionals acting for clients in 2005 was noted as follows. Firstly, virtually all interviewees were aware of the 2002 code. Secondly it is clear that larger and institutional landlords are more likely to have knowledge of the code and smaller landlords may not. Thirdly, tenants are perceived to have no knowledge of the code unless they are large tenants with direct access to professional property services advice. The conclusion is that Most consider that the Code is having no influence at all on lease negotiations, although some of the agent interviewees regard it as having some small, indirect, influence. Only two interviewees, one surveyor and one solicitor, are actively and regularly using the Code when negotiating on behalf of tenants. The paper concludes that there is the perception among large commercial tenants that the lease structure system is unsatisfactory in the UK, even if they are unaware of the Code. International tenants appear to be more dissatisfied than their UK counterparts. The main reasons cited for dissatisfaction are the lease lengths, and the tenants lack of break clauses. The research methods used in this paper hold credit as the results were a catalyst for a code reform. It is highlighted that the Code is underperforming, and holds no or very little influence. The paper has been useful in developing my hypothesis as it gives a benchmark for success for the 2007 Code. The Last Chance to Get Things Right: The article titled the last chance to get things right written by Philip Freedman, comments on the shortcomings of the 2002 Code and gives specific direction as to changes that should be implemented in the new Code. The shortcomings are extremely valuable to my research because it shows direct areas in which the 2002 Code has been considered to fail and these areas should be focused upon when analysing the level of success of the 2007 Code. Firstly, Freedman sights that restrictions on subletting and assignments have not been relaxed in accordance with the Code. Landlords, familiar with the landlord and tenant act 1995, had in recent years been imposing detailed restrictions on assignments, most notable with the introduction of required authorised guarantee agreements (AGAs). Tenants under such agreements are limited in their possibilities for assignment as it is difficult to find a sufficient tenant. Furthermore, the liability still remains in an event that an assignee defaults on the lease payments. His views are backed up by the research by the 2005 report conducted at Reading University. This research found that most leases that had the option for assignment automatically required the tenant to enter into an AGA. Secondly, between the period of 2002 and 2005, the courts upheld a number of landlords rights to impose strict enforcement on lease clauses that require subletting to conform to specific requirements on rent or other terms(Freedman,2006). Freedman sights the case Allied Dunbar Assurance PLC V Homebase LTD [2002]. This would suggest that the courts are not working in unison with the views held by the Government that businesses require further protection from landlords. Freedman concludes, indicating that this is the last chance for the industry. A study into whether the new Code has influence or not would seem wholly relevant as it would provide knowledge on whether this last chance has been successful or not. Code for Leasing Business Premises in England and Wales 2007: After Yvette Cooper introduced the Code in March 2007, Geoff Le Pard considered the contents of the new Code. The new Code is more concise than the 2002 version. It is written in plain English and provides more authoritative guidance on lease terms (Le Pard (2007). The article, from which the quote above is taken, was released 3 days after the Code was introduced. While this is time to provide commentary on the new aspects of the Code, it is unable to provide any reliable prediction as to how this will affect the market in the long run. New aspects of interest that are assessed include firstly pricing options and rent reviews. Under the 2007 Code, landlords must state whether a choice of lease terms is available and propose rents for different lease terms (Le Pard (2007). Secondly, restrictions on assignment are discussed. One of the governments principle concerns is the inflexible assignment and subletting provisions in leases (Le Pard (2007). The article continues by commenting that the Code only allows the provision of an AGA agreement, established problem of the 2002 Code, when the assigned tenant is of a lower financial standing than the outgoing tenant. Thirdly Le Pard comments that the new Code insists Break Clauses should not be prevented by conditions that effectively make the break inoperable (Le Pard (2007). Certainly the three features of the 2007 Code that are described by Geoff Le Pard can be tested using primary research as to their influence. A Code that Lacks Strength: The reach of the new commercial lease code will be limited by the ability of landlords to opt out selectively (Martin, 2007). In this article, John Martin explains that the government and BPF believe that landlords who subscribe to the Commercial Landlords Accreditation Scheme (CLAS) will gain marketing benefits. Part of the scheme involves the landlords abiding by the 2007 commercial lease code (landlord code). If rules are broken then private and public reprimand can occur however, the landlord code value is watered down in the fact that landlords can opt out of any specific requirements of the Code (subject to explanation). The extent to which landlords sign to the CLAS is not described, however is supports the view that landlords do not want to adopt the Code. Martin also has an interesting view that the new guidance on assignments appears to be an attempt to revert to the pre-1996 position, without re-instating the concept of privity of contract (Martin 2007). The article is however written with an assumption that the Code will be endorsed by property professional and therefore will spread throughout the market quickly. Gap in the Knowledge: As previously mentioned, there is a wealth of information published commenting on the Code for Leasing Business Premises in England and Wales 2007. What is unknown is the influence this code is having on the industry if at all. Considering the Code is thought to be the last chance for reform prior to legislation, its performance should be reviewed to show whether legislation is necessary or not. After reviewing the literature in this chapter, a conclusion has been drawn that the Code is unnecessary. There is not sufficient research to prove this and there is therefore a gap in the knowledge. The next chapter sets out the methods in which the hypothesis in Chapter 1 will be tested. Introduction: This research was designed to test this hypothesis; The introduction of The Code for Leasing Business Premises in England and Wales 2007 has improved the position of a tenant when negotiating a new lease. This chapter discusses the research methods applied and ultimately lead to a comprehensive conclusion that will either reject or confirm the hypothesis. Research Methods: Traditionally, there are two different types of research. These are Quantitative research and qualitative research. Miles Huberman (1994). Quantitative Research: Quantitative Research is normally presented in Data, usually in the form of numbers and statistics. Theres no such thing as qualitative data. Everything is either 1 or 0 (Fred Kerlinger). The aim is to classify what statistics are important, count them and construct statistical models. One can then explain what is observed. Fred Kerlinger considers all research can be ultimately defined as quantitative as one could argue that all information can be displayed through binary (yes or no) questions and answers. Qualitative Research: Qualitative research is based upon alternatives to statistical data such as values and opinions. Donald Campbell holds the view that all research must stem from an initial qualitative theory. All research ultimately has a qualitative grounding (Donald Campbell) It can be extremely useful when there is little or no previous research on a topic, as it can unearth new views and theories on a subject. Donald Campbell considers all research stems from an initial qualitative study. Research Strategy: Secondary Research: This type of research relies on the information and research submitted by others. The advantages and disadvantages are shown in table 3.1 above. Before writing this report, many books, internet articles, journals magazine articles were consulted so a thorough understanding of the subject was known. It should be noted that as the Code in question, The Code for Leasing Business Premises in England and Wales 2007, was only introduced at the end of April in 2007 there is therefore limited published material on the subject. Literature Review: The literature used in Chapter 2 for the review is a form of secondary research, and while it shows the current knowledge on a topic, much of it is outdated and therefore unreliable. The literature review also highlighted the lack of material published regarding the lease codes in the UK. There are a number of magazine articles but there is only one academic report (Crosby et al. (2005)) that holds any significant value, but as stated it is outdated. Once the gap in the knowledge was identified from the literature review, it gave direction for a number of research questions to use in my primary research. Primary Research: This is research that compounds new information. The following two types of primary research were used by my study:- Small Business Tenant Questionnaire. Landlord Questionnaire. Semi-structured Interview with Chartered Surveyors. Tenant and Landlord Questionnaires: Target Audience: The first stage of primary research involved two separate questionnaire studies firstly to tenants, and secondly to landlords. The questions aimed at the subjects were influenced by the report from Reading University Monitoring the 2002 Code of Practice for Commercial Leases (Crosby et al. (2005)). Questions were asked with a final goal of contributing to the objectives and aims of the report and testing the validity of the hypothesis. The questionnaire provides an opportunity to understand the direct influence of the Code for Leasing Business Premises in England and Wales 2007 on tenants and landlords. Questionnaires were completed in either of two ways. It was established that it would be far easier to gain responses from landlords if it was via email and therefore this is how the 20 landlords were contacted and how they gave response. With regard to the tenant questionnaire, it was decided that a questionnaire would be delivered to a number of tenants. After two days, these would be collected and any uncompleted questionnaires would not be counted. A total of 30 business tenants were visited. Due to the data protection act, names of tenants or landlords remain anonymous and cover notes were addressed to the Manager. Sample: Due to the large number of tenants and landlords in England and Wales, it is necessary to sample the respondents. The sample method used is a form of random and cluster sampling combined. Normal cluster samples are used when the subject research matter is too large to measure. Normally certain areas would be subject to research instead of the whole country for example. Often in cluster sampling, the total population is divided into these groups (or clusters) and a sample of the groups is selected (Wikipedia, 2008). In my research, this was further randomised down into sample of particular clusters. Areas used for the research were Windsor, Bracknell and Reading. It was considered that 30 tenants and 12 landlords would be a sufficient sample to gain the required information without mak ng the research excessively impractical. Design and Content: Each of the two questionnaires were designed to be as clear as possible for the target individuals, and they also incorporate layman wording as to ensure each question is understood fully. The majority of questions asked utilised a multiple choice answer system. This enabled each paper to be completed with ease and also provide comparable data between different questionnaires. Copies of both Questionnaires including a covering letter for each questionnaire are included in Appendix B and C respectively. Pilot: It was felt necessary for a pilot copy of each questionnaire to be reviewed by a property professional prior to conduction of the survey. This was done for a number of reasons. Firstly the design of the questionnaire is reviewed to ensure it is easy to comprehend. Secondly, the wording is reviewed and changed if necessary. Thirdly organisation and the number of questions are reviewed. The pilot questionnaires were sent to a property professional Nigel Dight (Leslie G. Dight and Partners). It was decided after the pilot that a universal do you have any other comments to add, would be incorporated as a final question. This gives the opportunity for landlords or tenants in the subject research to add any qualitative information they feel important to the subject. Response Rate: Before each email was sent to landlords, a telephone call was made to ensure they were comfortable with the questionnaire. This ensured a high response rate. A covering letter (viewable in Appendix B) was also sent to emphasise the importance of the answers and how they help the research project. A response rate of 75% was achieved which was viewed as a success. A much lower response rate was expected from the tenant questionnaires; however, the 60% achieved was largely viewed as a success. It was expected to that ten respondents from each questionnaire would be achieved however this was exceeded. After this initial response it was decided therefore that no new respondents needed to be found as both questionnaires had exceeded response rate expectancy. Semi-structured Interview: Target Audience: Interviews were carried out with chartered surveyors who have extensive current and previous experience in both tenant and landlord representation during lease negotiations. It is important that each interviewee has experience of the market over the last twenty years in order to have a comprehensive view of how the market has changed, and how this has affected tenants. Appendix D gives a list of interview candidates. A semi-structured interview technique was used to gather information from chartered surveyors because they are likely to have a wealth of experience and knowledge on the topic. The interview provides the opportunity to show the indirect impact of the Code for Leasing Business Premises in England and Wales 2007 because, unlike the questionnaires, the interviewed surveyors are more likely to have a broader understanding of the mechanisms within the market. If the code is found to indirectly affect a business lease tenant, the surveyor is far more likely indicate this than the tenant themselves. Sample: Due to the large number of chartered surveyors in the UK it is not possible to interview them all. A random sample method is used to find suitable candidates for the interview process. It is also important the prospective candidates are vetted prior to the interview to ensure they have the relevant experience to answer the questions. Although only a small number of interviews took place, an attempt to provide a full spectrum of surveyors from the marketplace was achieved. One of the interviewees acts on behalf of large corporate clients, while another acts on behalf of smaller clients for example. It was viewed that only a small number of samples would be required as a predicted response rate was a high percentage. Design and Content: Appendix D includes a list of outline questions that should be posted to interviewees. Although only a guideline, these questions were designed to gain the core information required from the interview. In practice, further questions and discussions took place during the interview. Compared with the questionnaires, this provides further in depth answers and opinions. The estimated time of each interview was intended to be around 15 minutes. This was firstly conceived to be enough time to gain the required information. Secondly it was not so long as to discourage any prospective interviewees from taking part. In practice the interviews lasted for around 25 minutes, due to the expansion of the core questions, however this did not cause a problem. A full transcript of each interview can be viewed in appendix E. Two of the interviews were carried out via telephone interview as this provided the easiest was to lease with surveyors at some distance. One interview was carried out in person d ue to the close proximity of their office. The interview in person proved to be more successful as the interviewee seemed more focused on the questions. Response Rate: The response rate was 60% which was considered poor under the circumstances. A small number of surveyors were contacted with the initial view that all would provide an interview. The response rate did however fall between 60% and 100% which wa

East Of Eden :: essays research papers

East of Eden   Ã‚  Ã‚  Ã‚  Ã‚  Some of the most aspiring and influential authors show to be American novelists. American novelists brought about a new style of writing, which became very popular. John Steinbeck shows this style of writing in his novel, East of Eden. This makes Steinbeck one of the most significant American novelists in the twentieth century. East of Eden contains many parts, which add detail and interest to the novel. Many of Steinbeck’s novels and other works remain and continue to be nationally acclaimed. Many elements exist in East of Eden that bring about the meaning and concept of the novel. The study of John Steinbeck and his book, East of Eden, will help the reader better understand the element of fiction and interpret the meaning of the work.   Ã‚  Ã‚  Ã‚  Ã‚  John Steinbeck was born on February 27, 1902 in Salinas, California. Between 1919 and 1925 Steinbeck was acknowledged as a special student at Stanford University. According to Peter Lisac, â€Å"Variously employed as a had-carrier, fruit-picker, apprentice printer, laboratory assistant, caretaker, surveyor, reporter, writer, and foreign correspondent let him acquire knowledge in many areas.† (1) Even in his youth, Steinbeck developed a love of the natural world and diverse cultures. Steinbeck produced two children from his second wife, Elaine Scott. The early 1930’s became a struggle for Steinbeck, both in his Long 2 attempts to improve his writing and his day-to-day existence. Yet, in the 1940’s he turned his main interest from sociology and biology to individual ethics. Steinbeck was honored in 1962 with the Nobel Prize in Literature. He regarded East of Eden as the accumulation of his career. Steinbeck died of heart disease in New York on November 20, 1968.   Ã‚  Ã‚  Ã‚  Ã‚  In addition to East of Eden, Steinbeck produced many other novels and several volumes of short fiction in his early career. Most of Steinbeck’s novels and stories are set in the Salinas Valley in California where he spent most of his life. Steinbeck won the Pulitzer Prize for his novel, Grapes of Wrath which makes him best known. According to John Timmerman, †Grapes of Wrath studies the problems migrant workers encountered while traveling from Oklahoma to California.† (1) Steinbeck wrote eighteen books through his life span. Some of his novels included Of Mice and Men, Cannery Row, Tortilla Flat, The Moon is Down, The Red Pony, and many others. Of Mice and Men gained Steinbeck national recognition. Saint Katy the Virgin, Nothing So Monstrous, The Long Valley, How Edith McGillcuddy, and The Crapshooter are Steinbeck’s volumes of short stories. East Of Eden :: essays research papers East of Eden   Ã‚  Ã‚  Ã‚  Ã‚  Some of the most aspiring and influential authors show to be American novelists. American novelists brought about a new style of writing, which became very popular. John Steinbeck shows this style of writing in his novel, East of Eden. This makes Steinbeck one of the most significant American novelists in the twentieth century. East of Eden contains many parts, which add detail and interest to the novel. Many of Steinbeck’s novels and other works remain and continue to be nationally acclaimed. Many elements exist in East of Eden that bring about the meaning and concept of the novel. The study of John Steinbeck and his book, East of Eden, will help the reader better understand the element of fiction and interpret the meaning of the work.   Ã‚  Ã‚  Ã‚  Ã‚  John Steinbeck was born on February 27, 1902 in Salinas, California. Between 1919 and 1925 Steinbeck was acknowledged as a special student at Stanford University. According to Peter Lisac, â€Å"Variously employed as a had-carrier, fruit-picker, apprentice printer, laboratory assistant, caretaker, surveyor, reporter, writer, and foreign correspondent let him acquire knowledge in many areas.† (1) Even in his youth, Steinbeck developed a love of the natural world and diverse cultures. Steinbeck produced two children from his second wife, Elaine Scott. The early 1930’s became a struggle for Steinbeck, both in his Long 2 attempts to improve his writing and his day-to-day existence. Yet, in the 1940’s he turned his main interest from sociology and biology to individual ethics. Steinbeck was honored in 1962 with the Nobel Prize in Literature. He regarded East of Eden as the accumulation of his career. Steinbeck died of heart disease in New York on November 20, 1968.   Ã‚  Ã‚  Ã‚  Ã‚  In addition to East of Eden, Steinbeck produced many other novels and several volumes of short fiction in his early career. Most of Steinbeck’s novels and stories are set in the Salinas Valley in California where he spent most of his life. Steinbeck won the Pulitzer Prize for his novel, Grapes of Wrath which makes him best known. According to John Timmerman, †Grapes of Wrath studies the problems migrant workers encountered while traveling from Oklahoma to California.† (1) Steinbeck wrote eighteen books through his life span. Some of his novels included Of Mice and Men, Cannery Row, Tortilla Flat, The Moon is Down, The Red Pony, and many others. Of Mice and Men gained Steinbeck national recognition. Saint Katy the Virgin, Nothing So Monstrous, The Long Valley, How Edith McGillcuddy, and The Crapshooter are Steinbeck’s volumes of short stories.

Bone Forensic Anthropologists Essay

1 How did your findings compare to the rest of your team and to the actual data provided by your teacher? What could account for any variation? 2 Why do you think the pelvis is often the first bone forensic anthropologists look to in determining sex from skeletal remains? The pelvis is the first bone anthropologist look at because a male can not fit a human head through their pelvis. A female (the one that is pregnant) can fit a babies head through her pelvis because its wide enough and doesnt have anything blocking where the baby comes out at. 3 The developmental occurrences you used to determine age stopped at age 25. What are other clues a forensic anthropologist may be able to use to determine age if the bones belong to a person over age 25? Determining the age of a sub-adult skeleton is examination of the teeth and jaw by a forensic anthropologist. However, a comparative analysis may be made using the skull sutures and epiphyseal fusion in the young-adult skeleton. Sutures are the zigzag â€Å"seams† where the bones of the skull meet. Endocranial sutures (inside the skull) are more reliable as an aging method than is ectocranial suture analysis. 4 What is the difference between qualitative and quantitative evidence? Explain how both types of measurements played a role in this activity. Quantitative data Observations that do not involve numbers. These observations were definitely used in this activity when we obsered things like â€Å"heart-shaped vs. round pelvis† or â€Å"blunt vs. sharp upper eye sockets. Quantitative observations are numerical observations. We also used these in this activity for measurements on the sub-pubic angle, the length of leg and arm bones, the nasal index, etc. 5 To analyze the long bones, the femur and the humerus, you looked at bone markings such as condyles, tuberosities and trochanters. Look back at the photographs and at the bone markings on your Maniken ®. How would you describe these markings in your own words? Which features do you think  separate each class of markings from the others? 1. In this activity, you were able to analyze skeletal remains in order to determine four particular traits of an individual. In a real life situation, scientists could provide a more detailed description of the individual based on additional information that can be acquired from the bones of this person. Describe at least two other pieces of information you could possibly learn from bone. Make sure to provide a specific example for each piece of information.

Loans & Advances of Dhaka Bank

Home  » Business  » Economics  » Report on Procudure for Distributing Loans and Advance at Dhaka Bank Report on Procudure for Distributing Loans and Advance at Dhaka Bank on March 20, 2013 in Economics [pic][pic]1. a. Introduction Internship program is a pre-requisite for acquiring M. B. A. degree. Before completion of the degree, a student must, undergo the Internship program. As the classroom discussion alone cannot make a student perfect in handling the real business situation, therefore, it is an opportunity for the students to know about the real life situation through this program.The program consists of three phases: 1. The orientation of the Intern with the organization, its function and performance. 2. The project work pertaining to a particular problem or problems matching with the Intern’s area of specialization and organizational requirement. 3. The report writing to summarize the Intern’s analysis, findings and achievements in the proceeding of the fo llowings. 1. b. Objectives of the Report: The report has two objectives: 1. General Objective 2. Specific Objective 1) General objectives of the report: The general objective of the report is to complete the internship.As per requirement of MBA program of Chittagong University, a student need to work in a business organization for two months to acquire practical knowledge about real business operations of a company. 2) Specific objective of the report: The specific objective of this report is to find and analyze the Credit facilities (its outstanding, recovery, classified loans etc), approval and monitoring process of Dhaka Bank Limited, Local office. It will also include gathering an idea about the securities behind the loan facilities and issuing different bank guarantees.The detail objectives of my study are as follows- †¢   To access the credit structure of banks in practice. †¢   To measure the effectiveness of the selected banks in utilization of their available deposit and resources. †¢   To identify the relationship with their customers. †¢   To identify the loan recovery performances of the selected banks. †¢   To find out the deposit utilization problems. †¢   To find out the implementation of credit risk management policy of the selected banks. †¢   To find out the implementation of the credit risk grading manual of Bangladesh bank by the selected banks. To find out the unsound credit according to the credit risk management policy. 1. c. Methodology Methodology of the study: This report is mainly prepared by the secondary sources of information & some few primary sources of information like – O Direct observation. O Information discussion with professionals. O Questioning the concerned persons. The secondary sources of my information – O Annual reports of DBL. O Credit rating report of DBL by credit rating information & services limited. O Desk report of the related department. O Credit manual information. O Different reference books of the library.O Some of my course elements as related to this report. 1. d . Scope of the study: This report will cover an organizational overview of Dhaka bank. It will give a wide view of the different stages of credit appraisal system of Dhaka bank, starting from the loan application to Loan disbursement and the comparison between standard and existing credit appraisal system of a Bank. The study is organized as follows: †¢   Credit profile of the selected banks. †¢   Loan recovery. †¢   The nature of default. †¢   Credit management and guidelines. †¢   Analysis of the findings and recommendation. 1. e.Limitations There are some limitations I had to face while preparing this report. It is very difficult to collect some of the important data and information. There is some information very secret and the Bank didn’t want to provide this information. But this information may help to build a go od report. Another limitation is availability of the data. The bank doesn’t have sufficient documents of the interest amount they collect from different loans. For this there is no specific profit calculation of the credit department. So, These kinds of limitations I faced while preparing the report. . a. Dhaka Bank Limited DHAKA BANK LIMITED was incorporated as a public limited Company on 6th April 1995 under the company act. 1994 and started it’s commercial operation on June 05, 1995 as a private sector bank. The bank started its journey with an authorized capital of Tk. 1,000. 00 million and paid up capital of Tk. 100. 00 million. The strength of a bank depends on its management team. The Employer in Dhaka Bank is proud to have a team of highly motivated, well-educated and experienced executives who have been contributing substantially in the continued progress of the bank.The marketing activities at the Dhaka Bank are very implicit and vast comparing to that of oth er bank in the country today. The Philosophy of the bank is â€Å"EXCELENCE IN BANKING†. Dhaka Bank is always willing to offer new product features to the client. Besides the applications of these products or services are prepared in a very modern way so that the service can be provided in least time required. The Credit facilities approved by Dhaka Bank are increasing day by day because of its well-organized and trained management and also well-equipped facilities.In recent time banking sector becomes very competitive and without giving good and attractive facilities and service no bank can survive in this time. Dhaka Bank is also trying to provide good service to keep going with this competition. 2. b. Mission Statement: To be the premier financial institution in the country providing high quality products & services backed by latest technology and a team of highly motivated personnel to deliver Excellence in Banking. 2. c. Vision Statement: At Dhaka Bank, we draw our inspi ration from the distant stars.Our term is committed to assure a standard that6 makes every banking transaction a pleasurable experience. Our endeavor is to offer you razor sharp sparkle through accuracy, reliability, timely delivery, cutting edge technology, and tailored solution for business needs, global reach in trade and commerce and high yield on your investments. Our people, products and processes are aligned to meet the demand of our discerning customers. Our goal is to achieve a distinction like the luminaries in the sky. Our prime objective is to deliver a quality that demonstrates a true reflection of our vision- Excellence in Banking. . d. Slogan: Excellence in Banking. 2. e. Company Philosophy The motto or the philosophy of the Bank is â€Å"Excellence in Banking†. Whether in Personal, Corporate, Treasury or Trade transactions of Dhaka Bank Limited is committed to provide the best. Meeting the demand of the bank’s discerning customers is not the sole object ive. The Bank endeavor to deliver a quality that makes every transaction a pleasurable experience. Dhaka Bank feels that, if they can meet maximum clientele requirements in less time with efficiency, then they will be able to accomplish a successful business in the world of banking.Their main objective is – they want to provide every single customer service available in today’s banking procedure for their clientele. Thus they can guarantee the excellence in banking to their valuable customers. 2. f. Company Activities and Performances Paid up Capital The paid up capital of Dhaka Bank Limited amounted to Tk. 1,547 million as on December 31, 2008 which was Tk. 100 million when the Bank started its operation. The total equity (capital and reserves) of the Bank as on December 31, 2008 stood at Tk. 3125 million. Deposits A strong deposit base is critical for success of a bank.During the years the Bank has mobilized a substantial amount in deposits in transactional and savin gs account. The deposit base of the bank continued to register a steady growth and stood at Tk. 48,731 million excluding call as of 31 December 2008 compared to Tk. 41,554 million of the previous year registered a 17% growth. Investment Dhaka Bank has diversified its investment portfolio through Lease Financing, Hire Purchase, and Capital Market Operations besides the investment in treasury bills and Prize Bonds. The emphasis on high quality investment has ensured the bank to maximize its profit.Dhaka Bank Limited is a member of the Dhaka Stock Exchange and Chittagong Stock Exchange. A specialized unit of the Bank, the Investment Division manages the Bank’s portfolio and actively participates in the screen-based on-line trading of both the Stock Exchanges. Profit Dhaka Bank Limited registered an operating profit of Tk. 2,010 million in 2008 compared to Tk. 1,183 million in 2007 making a growth of 70%. After all provisions including general provisions on unclassified loans, pr ofit before tax stood at Tk. 1,531 million. Provision for tax for the year 2008 amounted to Tk. 27 million. The net profit of the bank as on 31 December 2008 stood at Tk. 704 million compared to previous year’s Tk. 580 million making growth of 21%. Earning per share (EPS) was Tk. 46. 06 in 2007 compared to Tk. 45. 17 in 2007. Loans and Advances The Bank implemented the system of credit risk assessment and lending procedures by stricter separation of responsibilities between risk assessment, lending decisions and monitoring functions to improve the quality and soundness of loan portfolio. The Bank recorded a 17 % growth in advances with a local loans and advances portfolio of Tk. 9,972 million at the end of December 2008 compared to Tk. 34049 million at the end of December 2007. As of 31 December 2008, 96. 85 % of the total Bank’s loan portfolio was regular while only 3. 15 % of the total portfolio was non-performing as compared to 1. 64 % of 2007. Bank made required pr ovision as on 31 December against performing loans as per rate and classification norm provided by Bangladesh Bank (se note-2c). The volume of non-performing loans stood at Tk. 1,258 million in 2008 from Tk. 554 million in 2007. Of the total loan provision of Tk. 04 million, Tk. 465 million was general provision, which was 51 % of total provision. The rest Tk. 439 million was against the classified accounts. 1. Non-performing loan 2. Regular Loan A wide range of business industries and sectors constitutes the Bank’s advance portfolio. Major sectors where the Bank extended credit include steel and engineering, ship breaking, edible oil, sugar, housing and construction, pharmaceuticals, chemicals, electronic and automobiles, energy and power, service industries, trade finance, personal or consumer credit, leasing etc.The Bank continued to support Small and Medium Enterprises (SME) and expended credit facilities to them through its SME Cell. Sector wise allocation of advances re veals a well-diversified portfolio of the Bank with balance exposure in different sectors. High concentration sectors are textile and garment industries with outstanding of Tk. 7,524 million, housing and construction with Tk. 4,093 million, food and allied industries with Tk. 2,949 million and engineering and metal including ship braking with Tk. 1,903 million as at 31 December 2008. Customer ServiceCustomer is in the core of everything a service-oriented company does. Accuracy, reliability, and timely delivery are the key elements of the Dhaka Bank’s service. Well-qualified and experienced officials always prepared to provide efficient, personalized and quality service man Dhaka Bank Limited. The banks prime objective is to provide high quality product and services to the customers. The bank also performs according to the needs of its corporate clients and provides a comprehensive range of financial services to national and multinational companies. International Trade & Fore ign ExchangeInternational trade constituted the major business activity conducted by the bank. Dhaka Bank offer a full range of trade finance services, namely, Issue, Advising and Confirmation of documentary Credits; arranging forward Exchange cover; Pre-shipment and post- shipment finance; Negotiation and purchase of Export bill; Discounting of bills of Exchange, Collection of bills etc. In the year 2008, Dhaka Bank Limited was active in extending services to their valued clients related with import business. As of 31st December 2008 the import volume was Tk. 49,496 million compared to the volume of 2006 for Tk. 6,277 million marking as increase of 7% from the last year. Dhaka Bank Limited experienced sound growth of export business in 2007 from 2006. The volume of export business rose to Tk. 31,081 million from Tk. 23,269 million in 2007 showing an increase of 34%. Branches Dhaka Bank has opened already 41 branches in different Cities, Places and areas in Dhaka and also in Chittag ong, Sylhet, Narayangonj, Norshingdi and Savar. This shows the banks commitment to provide services to their valued customers through an extensive branch network at all commercially important places across the country.They also have planned to open more branches in the sort coming year. These branches are well decorated and well secured with the new technologies. Human Resources and Training The driving force behind Dhaka Bank has always its employees. The bank recognizes that professional development of its people is vital to establishing workers as a provider of quality service. In this regard, the bank have expanded its training facilities and set up a full-fledged training institute at SaraTower, Motijheel, Dhaka. Environmental Management ProgramThe Bank’s Environmental Management Program stipulates adherence with environmental, health and safety regulations and guidelines, refraining from business that impairs the ability of future generations to meet their own needs, as sessing an mitigating risks concerning environment, health and safety issues that the bank undertake. Community Service The Bank extends assistance to socio-cultural and community development programs. During the years under review, the Bank had provided support to a number of community welfare programs. At present Dhaka Bank assist the National Hokey Federation. Technologies, Products and ServicesDhaka Bank’s products and services are regularly upgraded and realigned to fulfil customer expectation. Their delivery standards are constantly monitored and improved to assure the highest satisfaction. The bank specially emphasizes on the service base on technologies. Because the life became very fast and people want take service within sort time. The consumer-banking sector of the Bank deals with number of tasks related to various services. The products that are recently being offered by the bank are as follows –   Accounts: Dhaka Bank provides the Savings Account; Curren t Account; Short Term Deposit; Fixed Deposit Receipt etc. or the customers. ATM (Automated Teller Machine): Dhaka Bank ATM Cards enable their valued customers to carry out a variety of banking transactions 24 hours a day. Credit Cards: Dhaka Bank Credit Card has earned wide acceptability and reputation within a very short time. The Bank has developed the process such that it can deliver the Credit Card within only 7 days against security; for unsecured cards it takes only 10 days. Phone banking: Dhaka Bank phone banking service allows customers to conduct a variety of transactions by simply making a phone from anywhere.Customers can inquire about the balance in their account, check transaction details or request for account statement by fax or e-mail. Locker: By this facility customers can put their valuable things such as jewelry items, valuable papers etc. for the safety reason. Consumer Credit: Dhaka Bank also provides consumer credit facilities with very attractive terms and con ditions. Industrial Loan: Loans issued for purchasing equipment, inventories, plants, payrolls etc. Any Branch Banking: By this customers can transact from any branch insight the country.Utility Bill Payment: Customers can pay different utility bill such as phone bill, credit card bill etc. 3. a. Bank: Banks are among the most important financial institutions in the economy. They are the principle source of credit (loanable fund) for millions of households (individuals and families) and for most local units of government. Moreover, for small businesses ranging from grocery stores to automobile dealers, banks are often the major source of credit to stock the shelves with merchandise or to fill a dealer’s showroom with new goods.When the business and consumers need financial information and financial planning, it is the bankers to whom they turn most frequently for advice and council. 3. b. Types of Bank Loans: The banks make a wide variety of loans to a wide variety of custome rs for many different purposes-from purchasing automobiles and buying new furniture, taking dream vacations and pursuing college education to constructing homes and office buildings. Bank loans may be divided into the following broad categories of loans, delineated by their purpose:   1.Real Estate Loans, which are secured by real property-land, buildings, and other structures- and include short-term loans for construction and land development and longer-term loans to finance the purchase of farmland, residential, and commercial structures etc. 2. Financial institution Loans, including credit to banks, insurance companies, finance companies, and other financial institutions. 3. Agricultural Loans, extended to farm and ranch operations to assist in planting and harvesting crops and to support the feeding and care of livestock. 4.Commercial and Industrial Loans, granted to business to cover such expenses as purchasing inventories, plant, and equipment, paying taxes, and meeting payr olls and other operating expenses. 5. Loans to Individuals, including credit to finance the purchase of automobiles, homes, appliances and other retail goods to repair and modernize homes, cover the cost of medical care and other personal expenses, either extended directly to individuals or indirectly through retail dealers. 6. Lease Financing Receivables, where the bank buys equipment or vehicles and leases them to its customers.Among the categories, the largest volume is in the real estate loans. The next largest category is commercial and industrial loans. 7. Asset-based Loans, loans secured by a business firm’s assets, particularly accounts receivable and inventory. Installment Loans, credits that is repayable in two or more consecutive payments, usually on a monthly or quarterly basis. 9. Letter of credits, a legal notice in which a bank or other institution guarantees the credit of one of its customers who is borrowing from another institution. 0. Retail Credit, smaller -denomination loans extended to individuals and families as well as to small business. 11. Term loans, credit extended for longer than one year and designed to fund longer-term business investments, such as the purchase of equipment or the construction of new physical facility. Term Loans are designed to fund long-and medium-term business investments, such as the purchase of equipment or the construction of physical facilities, covering a period longer than one year.Usually the borrowing firm applies for a lump-sum loan based on the budgeted cost of its proposed project and then pledges to repay the loan in a series of installment. 12. Working Capital loan, provide businesses with short-run credit, lasting from a few days to about one year. Working Capital Loans are most often used to fund the purchase of inventories in order to put goods on shelves or to purchase raw materials; thus, they come closest to the traditional self-liquidating loan described above.Frequently the Working C apital Loan is designed to cover seasonal peaks in the business customer’s production levels and credit needs. 3. c. Credit Analysis: The division of the bank responsible for analyzing and making recommendations on the fate of most loan applications is the credit department. This department must satisfactorily answer three major questions regarding each loan applicat 1. Is the Borrower Creditworthy and how know that? The question must be dealt with before any other is whether or not the customer can service the loan- that is, pay out the credit when due, with a comfortable margin for error.This usually involves a detailed study of six aspects of the loan application: – Character   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   🙠 well defined purpose for loan request and a serious intention to repay), Capacity   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   🙠 proper authority to request for the loan and legal standing to sign a loan agreement), Cash   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   🙠 ability to generate enough cash, in the form of cash flow), Collateral   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   🙠 enough quality assets to provide adequate support for the loan), Conditions   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   🙠 aware borrower’s line of work and also economic conditions), and Control   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   : All must be satisfactory for the loan to be a good ne from the lender’s point of view. 2. Can the loan agreement be properly structured and documented so that the bank and depositors are adequately protected and the customer has a high probability of being able to service the loan without excessive strain? The loan officer is responsible to both the customer and the Bank’s depositors and stockholders must seek to satisfy the demands off all. This requires, first, the drafting of a loan agreement that meets the borrower’s need for funds with a comfortable repayment schedule.The borrower must be able to comfortably handle any required loan payments, because the bank’s success depends fundamentally on the success of its customers. If a major borrower gets into trouble because it is unable to service a loan, the bank may find itself in serious trouble as well. So, the bank’s loan officer must be a financial counselor to customers as well as a conduit for their loan applicants. 3. Can the bank perfect its claim against the assets or earnings of the customer so that, in the event of default, bank funds can be recovered rapidly at low cost and with low risk?While large corporations and other borrowers with impeccable credit ratings often borrow unsecured, with no specific collateral pledged behind their loans except their reputation and ability to generate earnings, most borrowers at one time or another will be asked to pledge some their assets or to personally guarantee th e repayment of their loans. Getting a pledge of certain borrower assets as collateral behind a loan really serves two purposes for a lender.If the borrower cannot pay, the pledge of collateral gives the lender the right to seize and sell those assets designated as loan collateral, using the proceeds of the sale to cover what the borrower did not pay back. Secondly, collateralization of a loan gives the lender a psychological advantage over the borrower. Because specific assets may be at the stake a borrower feels more obligated to work hard to repay his or her loan and avoid losing valuable assets. The most popular assets pledged as collateral for bank loans are- Accounts Receivable, Factoring, Inventory, Real Property, Personal Property, Personal Guarantee etc. . d. Loan Review: Banks today use a variety of different loan review procedures; nearly all banks follow a few general principles. These include: 1)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Carrying out reviews of all typ es of loans on a periodic basis- for example, every 30, 60, or 90 days the largest loans outstanding may be routinely examined, along with a random sample of smaller loans. 2)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Structuring the loan review process carefully to make sure the most important features of each loan are checked. )  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Reviewing most frequently the largest loans, because default in these credit agreements could seriously affect the bank’s own financial conditions. 4)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Conducting more frequent reviews of troubled loans, with the frequency of review increasing as the problems surrounding any particular loan increase. 5)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Accelerating the loan review schedule if the economy slows down or if the industries in which the bank has made a substantial portion of its loans develop significant problems. 3. e. Handling Problem Loans:Inevitably, d espite the safeguards most banks build in their lending programs, some loans on a bank’s books will become problem loans. Usually this means the borrower has missed one or more promised payments or the collateral pledged behind a loan has declined significantly in value. The process of recovering the bank’s funds from a problem loan situation- suggests the following key steps: 1)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Always keeps the goal of loan workouts firmly in mind: to maximize the bank’s chances for the full recovery of its funds. )  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The rapid detection and reporting of any problems with a loan are essential: delay often worsens a problem loan situation. 3)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Keep the loan workout responsibility separate from the lending function to avoid possible conflicts of interest for the loan offers. 4)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Estimate what resources are ava ilable to collect the troubled loan. 5)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Loan workout personnel should conduct a tax and litigation search to see if the borrower has other unpaid obligations and many other processes. CREDIT MANAGEMENT: POLICY & PROCEDURESIntroduction: In general, a banking system aggregates a high number of low value deposits to fund enterprises with a smaller number of high value loans. This intermediation through a well functioning bank helps to achieve some economic benefits for the depositors, the borrowers and above all — the economy in the following ways: The depositors: †¢ Higher return †¢ Lower risk †¢ Greater liquidity The borrowers: †¢ Availability of fund for all credit worthy borrowers †¢ Thus allows to enterprises grow and expand The economy Economic growth is maximized as the banks channels the country’s scare financial resources into those financial opportunities with maximum return †¢ Thus profit able enterprises receive funding, grow and expand. †¢ Loss making enterprises are refused funding and allowed to go out of the business – thus saving the economy from drainage of resources. The bank must allocate loans effectively for achieving these broad objectives of the economy and the pre-requisites are: †¢ Banks are able to identify reliably those enterprises that can repay their loans. Banks allows loans to those enterprises likely to yield high return and deny loan to those likely to yield low or negative returns. While identifying profitable enterprises, the bank – in fact – identifies risks of the borrower and business in order to allow loan in the context of its risk – return profile. Credit risk management (CRM) is a dynamic process, which enables banks to proactively manage loan portfolios. Four major areas of CRM are: †¢ Policy – lending guidelines †¢ Procedure – evaluating viability and associate risks of b usiness enterprises. Organizational structure – segregation of risk taking and risk approving authority †¢ Responsibility – decision making and accountability A clear understanding of the four areas are crucial for maximizing bank’s earning by carefully evaluating credit risks and attempting to minimize those risks. 4. a. Policy objectives: 1) Maximize Bank’s earning from loan portfolio 2) Improve quality of loan portfolio to maximize earnings by: a) To keep non-performing assets below 10% b) Arresting new loans to become classified. ) Utmost emphasis on loan sanctioning is to be given in order to improve quality of the loan portfolio. Credit facilities are to be considered solely on viability of business / enterprises / project / undertaking having adequate cash flows to adjust the loans, and management capacity of the borrower to run the business profitably. 4) Evaluate credit risks before sanctioning, which may hamper generation of the projected c ash flows of the borrower and might delay or hinder repayment of bank’s loan. ) Monitoring continuously performances of the financed projects / business / enterprises will be bank’s main trust for ensuring repayment of the loan, and receiving early warning (EL) for taking timely corrective measures. 6) Price the loans on the basis of loan pricing module of the bank focusing on risk rating of the borrower. 7) Strict adherence to Bangladesh Bank’s policy guidelines 4. b. Lending guidelines As the very purpose bank’s credit strategy is to determine the risk appetite of the bank, so bank’s focus should be to maintain a credit portfolio to keeping in mind of our risk absorbing capacity.Thus its strategy will be invigoration loan processing steps including identifying, measuring, containing risks as well as maintaining a balance portfolio through minimizing loan concentration, encouraging loan diversification, expanding product range, streamlining securi ty, insurance etc. as buffer against unexpected cash flow. Types of credit facilities Bank will go for: †¢ Term financing for new project and BRME of existing projects (Large, Medium, SE) †¢ Working capital for industries, trading, services and others (Large, Medium, SE) †¢ Import and export Finance Lease Finance †¢ Consumer Finance †¢ Fee Business †¢ Islamic mode of finance Single borrower/ Group limits / Large Loans / Syndication The limit for single client / group under one obligor concept will be as under: 1. The total credit facilities by a bank to any single person or enterprise or organization of a group shall not any point of time exceed 35% of the bank’s total capital subject to the condition that the maximum outstanding against fund based financing facilities (fund facilities) shall not exceed 15% of the total capital. 2. Non-funded credit facilities, e. g. etter of credit, guarantee etc. can be extended to a single large borrower. But under no circumstances, the total amount of the funded and non-funded credit facilities shall exceed 35% of bank’s total capital 3. However, in case of export sector, single borrower limit shall be 50% of the bank’s total capital. But funded facilities in the form of export credit shall not 15% of the total capital   Large loan 1. Loan sanctioned to any individual or enterprise or any organization of a group amounting to 10% or more of bank’s total capital shall be considered as large loan. 2.The bank shall be able to sanction large loans as per the following limits set against their respective classified loans: |Rate of net classified loans |The highest rate fixed for large loans against bank’s total | | |loans & advances | |Up to 5% |56% | |More than 5% but up to 10% |52% | |More than 10% but up to 15% |48% | |More than 15% but up to 20% |44% | |More than 20% |40% | 3. In order to determine the above maximum ceiling for large loans, all on-fund ed credit facilities e. g. letter of credit, guarantee etc. shall also be considered to arrive 50% credit equivalent. However the entire amount of non-funded credit facilities shall be included while determining the total credit facilities provided to an individual or an enterprise or an organization or a group. 4. A Public Limited Company, which has 50% or more public share holdings, shall not be considered as an enterprise / organization of any group. 5. In case of credit facilities provided against government guarantees, the aforementioned restrictions shall not apply 6. In the case of loans backed by cash and excusable securities (e. g.FDR), the actual lending facilities shall be determined by deducting the amount of such securities from the outstanding balance of the loans. 7. Banks shall collect the information to the borrowers from Credit Information Bureau (CIB) of Bangladesh Bank before sanctioning, renewing or rescheduling loans to ensure that credit facilities are not pro vided to defaulters. 8. Banks shall perform Lending Risk Analysis (LRA) before sanctioning or renewing large loans. If the rating of an LRA turns to be â€Å"marginal†, a bank shall not sanction large loan, but it can consider renewal of an existing large loan taking into account other favorable conditions and factors. However, if the result of an LRA is unsatisfactory, neither sanction nor renewal of large loans shall be considered. 9.While sanctioning or renewing large loan, a bank shall assess borrower’s overall debt repayment capacity taking into consideration the borrower’s liabilities with other banks and financial institutions. 10. A bank shall examine its borrower’s Cash flow Statement, Audited Balance Sheet, income Statement and other financial statement to make sure that the borrower has the ability to repay the loan. Term Financing and Syndication Like large volume of loan, long term financing is one of the riskiest areas of the bank because of long duration of repayment. Long duration casts uncertainties on repayment as variable with which financial and other projections are made very widely in a dynamic global economic scenario.Thus utmost care is to be exercised while considering long term financing †¢ Long term relationship with the borrower is prerequisite for considering term financing †¢ Due diligence is to be exercised for accessing viability of the projects in terms of Management ability, Market gap, Technical suitability, Financial viability. †¢ Information on projects should be adequate and reliable †¢ Minimum information for project viability analysis is to be given. Syndication Syndication means joint financing by more than one bank to the same clients against a common security basically, to spread the risk. It also provides a scope for an independent evaluation of risk and focused monitoring by the agent / lead bank.In syndication financing banks also enter into an agreement that one of t he lenders may act as Lead Bank, who has to co-ordinate the activities at various stages of handling the proposal i. e. appraisal, sanction, documentation sharing of the security, disbursement, inspection, follow – up, recovery etc. it may also call meetings of syndication members, whenever necessary to finalize any decision Discouraged business types In the context of present economic situation vis-a-vis government policy as well as market scenario, the following industries and lending activities are considered as discouraged †¢ Military Equipment / Weapon Finance †¢ Highly leveraged Transactions †¢ Finance of speculative business Logging, Mineral Extraction/ Mining or other activity that is ethically or environmentally sensitive †¢ Lending to companies listed on CIB black list or known defaulters †¢ Counter parties in countries subject to UN sanctions †¢ Share lending †¢ Taking an equity stake in borrowers †¢ Lending to holding compan ies †¢ Bridge loans relying on equity / debt issuance as a source of repayment Loan facility parameters Size: Funded: maximum 15% of Bank’s total capital : Funded + Non Funded: 1)  Ã‚  Ã‚  Ã‚  Ã‚   Shall not exceed 35% of bank’s total capital 2)  Ã‚  Ã‚  Ã‚  Ã‚   Maximum 50% of Bank’s total capital for export sector. (Funded facility shall also not exceed 15% of bank’s total capital). Tenor: Short term: Maximum 12 months Medium Term: Maximum 5 years   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Long Term: Maximum 15 yearsMargin: To be determined by Banker Customer relationship and nature of business. Security: Return of Banks funding to any business is ensured primarily on the cash flow of the business. A smooth flow of cash in the business requires efficient management competence in conducting the business in a given market. However as the market never remains stable owing to various uncontrollable factors, the continuity of well- managed business cash flow is difficult to visualize in the long run. As such to ensure realization of Banks finance in case of any eventuality, other adequate security coverage deemed necessary with a view to protects interest of the bank. General Covenants Bank shall not extend any credit facility to any defaulter as defined in the bank company act 1991(clean CIB report required. ) †¢ The borrower shall have valid Trade license, †¢ In case of partnership firm there must be a partnership deed duly notarized / registered. †¢ Limited Company must be registered with the Registrar of Joint Stock Company. †¢   Directors and other loans will be subordinated to Dhaka Banks loan. Directors loan (if any) will be interest free and no dividend will be declared/paid before full adjustment of Term Loan of Dhaka Bank. †¢ The borrower shall submit annual audited/un-audited/projected financial statements regularly where applicable. †¢ The borrower shall maintain cur rent ratio of not less than 1. 5 times.. The borrower shall obtain and maintain in full force and effect all Government of Bangladesh (GOB) authorizations, licenses and permits required to implement and operate Borrowers business. †¢ The borrower shall maintain all insurance as detailed in Loan Documents. †¢ The borrower shall maintain satisfactory swing/turnover of the limit in case of continuous loans/advance. †¢ The borrower shall pay all fees , duties , taxes etc, that are due to the Government of Bangladesh (except where waivers or deferrals have been granted by Government of Bangladesh) when due. †¢ The borrower shall not create any charge, mortgage or any encumbrances of any other security interest over any of its assets without the prior written consent of the Bank. The borrower shall not avail any credit facility from other source without the prior written consent of the bank. †¢ The borrower shall not make any amendment/alteration in the Companyâ⠂¬â„¢s Memorandum & Articles of Association without obtaining prior approval of Dhaka Bank Ltd in writing. †¢ The borrower shall not furnish any corporate guarantee to other firm/company without Banks permission. Events of Default Bank will have the right to call back the Loan/Advance in the event of default under the following circumstances: †¢ Failure to repay †¢ Breach of Covenants of the loan agreement. †¢ Bankruptcy or liquidation or insolvency event affecting the Borrower. †¢ Occurrence of a material adverse change in the financial position of the Borrower. Any change in GOB directives, which in the opinion of the Lenders would prejudice the Borrowers ability to meet the financial obligations in respect of this facility, †¢ Any security interest over any asset of the Borrower becomes enforceable or any execution or distress is levied against or any person is entitled to or does take possession of the whole or any part of the assets or undertakings . Facility Wise Charge Documents %3 |L/C |LTR |BG |TL |CC Hypo/CC Pledge (Key Stock to | | | | | |Bank) | |1. Promissory Note|1. Promissory Note |1. Promissory Note |1. Promissory Note |1. Promissory Note | |2. Letter of |2. Letter of Undertaking |2. Letter of Undertaking |2. Letter of Undertaking |2.Letter of Undertaking | |Undertaking | | | | | |3. A/C Balance |3. A/C Balance confirmation |3. A/C Balance confirmation |3. A/C Balance confirmation |3. A/C Balance confirmation Slip | |confirmation Slip |Slip |Slip |Slip | | |4. Letter of |4. Letter of Continuity |4. Letter of Continuity |4. Letter of Continuity |4. Letter of Continuity | |Continuity | | | | |