The Need To Improve The Treasury Department Finance Essay - Free Essay Example

Sample details Pages: 8 Words: 2268 Downloads: 6 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? The word bank is derived from an Italian word Banque which means beanch. The view has the basis that early bankers conduct their business while sitting on benches in Italy. Bank is a financial institution which accepts deposits of money from the public for the purpose of lending or investing and these deposits are repayable on demand or otherwise can be withdraw by cheque, draft order or otherwise (Banking Companies Ordinance 1962). It also converts the domestic currency in the foreign currency. It issues notes and transacting with other financial business. Islamic Banking: Attention on the Islamic banking increased due to the contemporary global financial crisis and also decrease the intention on conventional western banking. Islamic banking system refers activities which are in accordance with the Islamic rules, principles and law. Islamic banking laws and principles are the strictly against the concept of usury or riba and also the fixation of profit in which only one party is responsible to bear the whole loss. Similarly the unethical and unsocial practices are also prohibited in Islamic banking. Islamic laws and principles also restrict any kind of dealing in which financial risk exist like Gambling and as well as also restrict parties to invest in such businesses which are totally illegal or haram. Don’t waste time! Our writers will create an original "The Need To Improve The Treasury Department Finance Essay" essay for you Create order History: Islamic banking system was introduced over three decades ago. Very first Islamic bank existence came in Egypt 1963. 1975 in Jeddah the existence of Islamic development bank was the base for Islamic banking. To meet the Muslim countries financial requirement Islamic development bank was the first institution. Similarly during 1970 to 1980 in Gulf, Dubai Islamic bank (1975), and the Bahrain Islamic bank (1979) was introduced. Saudi Arabia also took enough progress in this field when Saudi prince Muhammad Al-Faisal in Egypt 1977, introduced Faisal Islamic bank and similar development in Sudan 1978. Pakistan as an Islamic country starts its efforts towards Islamic banking in 1977 in the Gen. Zia regime. The constitution of Islamic republic of Pakistan 1973 in article 38(f) provides that the state shall ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦ eliminate interest as early as possible In the 1980s the whole system of banking converts into Islamic banking system in the Pakistan and in the related law number of modifications were commenced which presents the officially authorized cover for Islamic financial products and services. And in Pakistan the industry of Islamic banking continued its progress in the duration of 2008. And the 4.9% share of assets increased in the overall banking system up to the period of December 2008. In the end of the December 2008 the investment and the share of deposits financing increased. There is the 4.8% increase in share of Deposits Financing and 4.4% increase in the share of Investment. (Hand book of Islamic Banking Products Services by State Bank of Pakistan 2008, p.2). Features: There are following features of Islamic banking system. The system of Islamic banking financial transactions is based on the principles of Shariah. The first characteristics is there should a contract ( Aqad ), the second characteristics is that the transaction should be purely without riba and the last characteristics is that there is no element of uncertainty ( Gharar ) and Gambling ( Maisir ). Conventional Banking: It means to make money as much as possible. So the basic principle of conventional banking depends on more you have, more you can get In this banking system bank borrowing and further invest money on interest bases. In conventional banking system borrower is responsible for all type of risks, means liability of risk only on borrower not on lender. In conventional banking system rate of return is fixed, which is prohibited in Islam. History: The history of banking is closely related to the history of money. The origin of conventional banking can be found back to before Christ. A fundamental desire that played a great role in the development of conventional bank is the desire of credit. These banks are like financial intermediaries who raise funds from the public and invest them in a business or give loan. These banks generate their profit by taking deposits at a low rate of interest and lend this money at a high rate of interest. They also perform the function of agency and general utility. Difference between Islamic Bank and Conventional Bank: (Ahmad and Shabbir 1998) The Islamic bank differs from conventional bank in a number of ways including. The conventional banking system is based on interest and the Islamic banking system is free from interest. In Islamic banking system the operations and functions are totally based on the principle of Shariah but in the Conventional banking system the operations and functions are totally based on the rules which are totally made by man. In Islamic banking system the depositors receive fluctuating profit while in case of Conventional banking system the depositors receives the fixed profit. In Islamic banking risk is shared between the investor and the user of funds while in Conventional banking system the investor is assured to receive fixed rate of interest. In Islamic banking profit is maximized within the limitations of Shariah while in conventional banking system the profit is maximized without the limitations of Shariah. In conventional bank since the income from the advances is fixed so in conventional banks give greater emphases on Credit worthiness of the borrower instead of project evaluation and validity but in Islamic banks share profit and loss so it give greater emphases on the evaluation and validity of the project. In case of default in conventional banking additional money (compound interest) charged to the borrower, but in Islamic banking have no provision to charge any extra money from the defaulter. Need of Treasury Department in Islamic Banks: Define: Treasury Department manage placement of funding with local and foreign Banks at market or competitive price Treasury Department in Islamic Banks: To manage assets and liabilities is the basic function of treasury department in Islamic banks, Its main function is to fetch funds from Local and Foreign Banks   / Financial Institutions and invest in different projects keeping margin of profit of each transaction. For example Ajman Bank wants to invest USD 20,000,000.00 to Dubai Islamic Bank for one month with profit rate of 7 percent. On maturity of deal Ajman Bank will receive principal money with profit. This Department is play role as back bone of the Bank by fetching huge money and by taking advantage of differential rate of foreign currency rates as well as profit. So it is essential for the treasury department in Islamic banking to manage two types of funds that are shareholders and depositors funds. (Yatim 2009) its is the liabilities of the Islamic banks to manage depositors fund and shareholder funds which consisted upon current, saving, restricted and unrestricted deposit and retained earning, general reserve , share premium and paid up capital respectively. The funds which are arises are utilized in different investment and financial activities. Means this is use in different mode of financing. After the utilization the excess was managed by treasury department. So the primary and fundamental function of treasury department in Islamic banking is to maintain Reserves. Liquidity. Clearing process with central bank. Excess funds. Liquidity assets according to the shariah point of view are notes and coins and as well as different govt. investment certificate. (Bonds) Treasury department is also helpful to manage the clearing process of Islamic banks with others banks through central banks. in daily activities different cheques of different banks are drawn on different banks which are cashed through clearing process, in this process we take the services of NIFT. in clearing process central bank locates a location and there all the members of different banks are sitted and exchanged their cheques with others and in case of any deficit or any surplus it will be settled by the central bank. Every bank maintained some amount of reserve to meet the unexpected situation, central bank specified the limit of the reserve amount which a bank has to maintain at every day closing, and excess amount from reserves have to transfer to central bank by each bank at the end of the daily activities. For the issue of excess funds the Treasury department in Islamic banking is responsible to manage excess funds which arise from the customers and shareholder investments and deposits funds. So the treasury department invests excess amount of customers and shareholder funds in different government investment certificate. (GIC) Islamic Mode of Financing: Real sense of the Islamic financial institution to recognized itself with the basic principle and law which are accordance with the rule of shariah defined by the Holly Quran and the Sunnah. (Chiu and Newberger 2006) Treasury department in Islamic banks also use different term Islamic mode of financing like Murabaha, Ijarah-Wal-Iqtina, istisnaa, Salam, qarz-e-hasna, Diminishing Musharaka, Mudaraba etc. In term of murabaha Islamic banks using the excess amount for purchasing some commodities on the requested by the clients, and bank charges cost plus reasonable profit in advance. In term of ijarah- Wal- Iqtina, Islamic banks used excess funds and provided equipments, buildings, services and other assets to client and charged rents from clients on agreed terms and at the completion of the contract banks transfer owner ship to lessee because bank has covered its principle amount plus profit during the lease period, and it is the unilateral contract on the option of the lessor and not bi-lateral contract In term of istisnaa banks used excess fund and make the contractual agreement to manufacturing the commodities, and also gave the opportunities to provide the financing the facilities for the construction of housing schemes and different mega project like road, bridges and etc Salam is an Islamic mode of finance which is particular suited to the agriculture sector. In Islam the buyer agree to buy goods from the seller at a future date on which a full price is paid in advance. Diminishing Musharaka in this type of financing the financer and client participate in the joint ownership of a property or equipment. The share of the financer is further divided into small units and these units are purchased by the client from time to time. Mudaraba is the mode of financing in which one person (Rab-ul-maal) provides funds to the other persons or party (Modarib) who provides his services to manage the business. In mudarabah the mudariab has only right t o participate in management. Problems Regarding Treasury Departments: Before make improvement in any sector first of all we have need to identify the problems in that sectors. So the problems which we have identified from the different literature review that is Seeking good financial and strong Banks which are ready to invest and to take risk on the investing bank or on offering bank, means both parties equally share loss as well as profit on agreed ratio. The second issue which we observed from the literature review and conducting interview from different Islamic banks that is liquidity problems, because due to not well establishment of Islamic banking network some time How Make Improvement in Treasury Department: We can tackle the problems in the treasury department of Islamic banking by taking different steps, and these steps are: Offering competitive rate of profit Payment principal amount plus profit well in time so that better investment options can be availed. Having good name in the market. Continuous observing financial position  or risk rating of the banks. So our suggestion about second problem is that, government/ state bank must maintain some percentage for the liquidity requirement of Islamic banks from the revenue which government collected from different source like taxes exports and etc. For this problems state bank has designed a scheme to meet the finance requirement of Islamic banks that is Islamic export refinance scheme (IERS) under Musharakah based concept. Under this scheme both parties share profits and losses equally agreed ratio. in case if state bank charged some more profit then conventional bank rate, state bank convert excess fund into T akaful fund that is reserve fund that state bank maintained on the behalf of Islamic banks to managed the Future risk and losses Conclusion: Bank is a financial institution which accepts deposits of money from the public for the purpose of lending or investing and these deposits are repayable on demand or otherwise can be withdraw by cheque, draft order and bank also act as intermediate entity which act as a bridge between Lender and borrower. Islamic banking system refers activities which are in accordance with the Islamic rules, principles and law and restrict concept of Riba. This Attention on the Islamic banking increased due to the contemporary global financial crisis and also decreases the intention on conventional western banking. In conventional banking system bank borrowing and further invest money on interest bases. In conventional banking system borrower is responsible for all type of risks. Treasury department in banks play role as back bone of the Bank by fetching huge money and by taking advantage of differential rate of foreign currency as well as profit. The treasury department in Islamic banking is to m anage two types of funds that are shareholders and depositors funds. It is the liabilities of the Islamic banks to manage depositors fund and shareholder funds. So the basic function of treasury department in Islamic banking is to manage the reserve, liquidity, clearing process and to manage excess funds. Treasury department in Islamic banks used different types of Mode of Financing that are musharaka , mudaraba , ijarah , istisna , qarz-e-hasna, salam, etc. There are many problems that are arising in the treasury department and we take different steps to tackles these problems by creating the good name of Islamic banks in markets, offering competitive rate of profit and time to time checking the financial position risks of banks.

Gospels Vs. Medieval Gospels - 1266 Words

Gospels vs Laws The Gospels are the start of the New Testament that is the story of Jesus Christ and how though him he saved us all by dying on the cross. In the Old Testament were the laws which before Jesus they had to be followed in order to go to heaven. The coming of Jesus resulted in the passing of the time of the Laws. The Gospels are Matthew, Mark, Luke, and John. Each had a different author in which they each had a different audience placed in different time periods for different reasons. In this case one writer may include certain details that the other writers did not include. The four gospels flow together without any discrepancies but the first three gospels are referred to as the synoptic gospels. This means they look†¦show more content†¦Jews are Gods chosen people; Israel becomes the keepers of the Old testament, the recipients of the covenants, and the channel of Messiah (Rom. 3:2; 9:1-5). The Law is the dos and don’ts of moral behavior. God gave the Law so that people would have a guide to live by and a standard by which they might recognize God’s purity and their sinfulness. There are 613 commandments in the Old Testament. They oversee moral, judicial, and religious behavior. The Law is a reflection of the character of God because the Law comes forth from the very heart of God. The Bible says that out of the abundance of the heart the mouth speaks (Matt. 12:34). When God gave the Law, He was speaking out of the abundance of His heart. He was speaking from what was in Him. Therefore, the Law is good, pure, right, and holy. It is wrong to lie because it is against God’s nature to lie. It is wrong to steal because it is against God’s nature to steal. This Law, then, by its very nature of coming out of the heart of God and being spoken to men, is a standard for human conduct a perfect standard. Because it was perfect and we are not, it is impossible for sinful people to keep. It was for this reason that the La w became a stumbling block. It became an obstacle to Man because it is an unattainable perfect standard. The Law, then, brings about the opposite of what it requires. The Law says to be perfect but shows you where you are not. It says to be

Shakespeares character Juliet Essay Example For Students

Shakespeares character Juliet Essay Paragraph I (Juliet)Romeo and Juliet both grew up in haughty, first class households, where they were provided with everything they wanted and needed, not to mention a broad education including proper etiquettes. Juliet is a very courageous and loyal person to Romeo, for she not only stands up to her parents, but to systematic way of life that has existed for hundreds of years (arranged marriages). Shes tells her mother immediately at the ball that she will only meet Paris because she wants her to and not because she is voluntarily interested in him: Ill look to like, if looking liking move. But no more deep will I endart mine eyeThan your consent gives strength to make it fly. (1,iii,98-100)Romeo on the other hand shows courage, but not the same kind. He has a loving relationship with his father, and his courage is shown by him perusing his love for Juliet, knowing the consequences of associating with a Capulet. Since men could marry whoever they wanted, I wouldnt call him courageous. Juliet also qualifies as devoted, after the nurse tells her that she should just go ahead and marry Paris, she says she will kill herself if she is forced to marry Paris. She would rather take her own life than to have a life without Romeo:Ancient damnation! Oh, most wicked fiend!Is it more sin to wish me thus forsworn,Or to dispraise my lord with that same tongueWhich she hath praised him above compareSo many thousand times? Go, counselor. Thou and my bosom henceforth shall be twain. Ill to the Friar, to know his remedy. If all else fail, myself have power to die. (3,v,235-242)Juliet has already heard the nurses advice, she will talk to the friar, and if he doesnt tell her what she wants to hear, she will kill herself.

Management and Business Technological Context

Question: Discuss about the Management and Business Technological Context. Answer: Introduction Knowledge management is one of those significant management practices that help the business managers to create, share, and use the knowledge with other associates. Managers from different departments focus on evaluating the knowledge management procedure implemented within the organisational scenario (Sila, 2015). The existing and new employees can avail the opportunities to enhance their knowledge and skills in a professional setting. On the other hand, e-commerce business is a useful way of shopping the necessary items through online sources. The study is based on the case scenario of The Iconic, which sells the fashion garments and accessories through online sites. The study will be analysing the theoretical concepts related to the knowledge management and e-commerce business. The impacts of these two business concepts will also be identified in this study. Definition of the Relevant Terms, Concepts and Theories Business managers take the responsibility to establish the knowledgeable business environment to ensure growth in this current scenario. The purpose of the knowledge management is to increase the performance parameter of the employees for maintaining the psychological balance. It helps in participating in a competitive business environment with high skills and capabilities (Menguc Barker, 2015). It is to be indicated that the organisational sustainability depends on the high performance attribute of the associated employees. in the business market that helps in If the employees can perform well, it would reflect on the annual performance report. The company would be able to earn more profitability in a competitive business environment. Therefore, it is necessary to bring more innovative procedures in the business functionalities. The knowledge management practices help in providing the proper training to the employees and make them knowledgeable about the innovative business procedu res. The Electronic Commerce is the effective and systematic business networking process. Through the electronic commerce process, the company can sell the products through the online sources. In this current era, people spend a quality of time in browsing internet and social media (Ming-Ru et al., 2014). Therefore, the e-commerce process is providing these customers a fruitful platform for purchasing their necessary items and services without visiting the outdoor stores. The study is based on the case scenario of The Iconic, which sells the fashion clothes and accessories through online channels. The official online site of the company includes individual departments from where the customers can select their preferable items. Moreover, the site even includes the necessary information for online transaction and shipping facilities. In this current scenario, these e-commerce facilities are much useful for both the companies and the customers. There are two primary types of knowledge management, such as explicit knowledge and tacit knowledge. The major focus of The Iconic is to utilise the tacit knowledge, which is procedure of transferring the knowledge through effective training and development sessions. It is reported that the company has been focusing on channelling the latest technologies for providing unrivalled access to more international and local brands (Eprints.qut.edu.au, 2016). In order to achieve this goal, it is important for the company to engage the efficient workforce who can develop such technicalities in the online systems (Buckley Ollenburg, 2013). Therefore, the company has decided to provide the fruitful training session to the employees for developing the technologies and achieving the determined goals. On the contrary, the explicit knowledge management is the method of availing opportunities for understanding and gathering knowledge about the service process. The company needs to gather the information and feedback from the customers as well as the internal stakeholders. If the management of the company can understand the basic needs and demands of the internal and external stakeholders, it would be beneficial enough in improving the business functionalities. The application of tacit knowledge by The Iconic is quite effective for the e-commerce business. The company is focusing on the technological development to improve their online shopping sites and get access to numerous brands. Hence, it is necessary to develop knowledge of the employees through the training and development process. However, it is also necessary for the company to pay attention towards the customers demands that will help in restructuring the business functionalities. Effects of Knowledge Management and e-commerce business Process In this current era of business market, knowledge management and e-commerce business have the significant impacts on the business practices. The associated pros and cons will be described in the further section of the study. E-commerce business is one of the most helpful sources of dragging people from different geographic locations. It is noted that the e-commerce business is much wider and vast. People from different location and diverse cultures can get access to the necessary items and services through the online sources (Obeidat et al., 2016). The Iconic has occupied the significant position in the online business market. People from diversified geographic location can order the preferable items through online sources (Theiconic.com.au, 2016). The efficient shipping services are also available in the websites. Systematic Maintenance of the Services through Knowledge Management Knowledge management is a procedure of maintaining a systematic approach, which helps in keeping balance among the employees. For example, The Iconic has applied the tacit knowledge within the organisational scenario. It provides the necessary training and development sessions to the employees and makes them aware of the necessary technologies used for e-commerce business (Wang, Noe Wang 2014). It is somewhat works as the motivating factor for the employees, which generates the sense of job satisfaction through learning and development process. E-commerce business is much useful in this current business environment. It is quite difficult for the business companies to get direct access to the feedbacks of the customers. The service providers need to be dependent on the telecommunication process to contact the registered customers (Marra, Ho Edwards 2012). Collecting the feedback becomes much difficult for the service providers since it lacks the transparency. While implementing the knowledge management practices, The Iconic needs to pay the significant attention towards the business functionalities. The application of the knowledge management procedure helps in gathering the fruitful ideas about the business process (Hislop, 2013). There are some of the risks factors associated with the implementation of knowledge management. It is much difficult for the business managers to manage the employees while undertaking these initiatives. Challenges emerge when the employees are not fully aware of the importance of knowledge management training process. It sometimes generates the sense of job insecurity due to the changes in organisational functionalities. Hence, it is necessary for The Iconic to maintain proper efficiency level that will convince the employees to take the active participation in this business activity. Lack of proper operational skills In time of establishing the e-commerce business, it is essential for the employees to apply the proper skills and competency level for the operational activities. In such cases, the application of the knowledge management is much essential. The Iconic tends to provide the effective training and development session to the employees for upgrading the technical skills. In fact, it is essential for them to make the employees aware of the business essentialities and other fruitful concerns (Chua Banerjee, 2013). The lack of proper operational skills can affect the business procedure much significantly. In order to develop the knowledge management procedure, it is necessary to select the relevant strategy that will assimilate the employees for improving business. The business management firstly needs to focus on the business requirements. The business functionalities are structured based on the demands of the stakeholders (Aggestam, 2015). Accordingly, while implementing theoretical practices, it is necessary for the company to concentrate on the suitable knowledge management theory. The application of the wrong theory will affect the business functions in a significant manner. Instability of the economic growth The fluctuation in the domestic and international economic market also has the significant impacts on the business functions. In order to derive a large amount of profit, the company requires focusing on the sufficient capital investments (Sila, 2015). Investing the sufficient amount in structuring the infrastructure would be helpful enough for the company to conduct the business. Accordingly, the instable growth in the economic structure is much impactful for the business progress in this current business environment. The concerns on these areas are ensuring much limitation for the company. The maintenance of the economic flexibility would be helpful for The Iconic to establish the e-commerce business more significantly. Conclusion The effects of the current business scenario signify many challenges for the business companies. The Iconic is a renowned fashion retail e-commerce business, which has selected the effective knowledge management practices to ensure the organisational growth. It is necessary for the company to develop the proper training and development session to mitigate the emerging risks. In fact, it is even necessary to concentrate on the investments of the sufficient capita; resources that will be helpful enough in managing the necessary infrastructure. References Aggestam, L. (2015). Learning Organization or Knowledge ManagementWhich Came First, The Chicken or the Egg? Information technology and control,35(3). Buckley, R., Ollenburg, C. (2013). Tacit knowledge transfer: Cross-cultural adventure.Tourism Tribune,23(10), 87-92. Chua, A. Y., Banerjee, S. (2013). Customer knowledge management via social media: the case of Starbucks.Journal of Knowledge Management,17(2), 237-249. Eprints.qut.edu.au, (2016). A Structurationist review of knowledge management theories [online] Available at: https://eprints.qut.edu.au/10104/1/10104_2.pdf [Accessed 17 Jan. 2017]. Hislop, D. (2013).Knowledge management in organizations: A critical introduction. Oxford University Press. Marra, M., Ho, W., Edwards, J. S. (2012). Supply chain knowledge management: A literature review.Expert systems with applications,39(5), 6103-6110. Menguc, B., Barker, T. A. (2015). The Role of Human Capital Resources in Rent Generation and Rent Appropriation: Implications for Knowledge Management Process. InAssessing the Different Roles of Marketing Theory and Practice in the Jaws of Economic Uncertainty(pp. 37-37). Springer International Publishing. Ming-Ru, Z., Yang, C. C., Ho, S. Y., Chang, C. H. (2014). A study on Enterprise under Globalization Competition Knowledge Management and Creation Overhead Construction.Journal of Interdisciplinary Mathematics,17(5-6), 423-433. Obeidat, B. Y., Hashem, L., Alansari, I., Tarhini, A., Al-Salti, Z. (2016). The effect of knowledge management uses on total quality management practices: A theoretical perspective.Journal of Management and strategy,7(4), 18. Sila, I. (2015). The state of empirical research on the adoption and diffusion of business-to-business e-commerce.International Journal of Electronic Business,12(3), 258-301. Theiconic.com.au, (2016). About THE ICONIC - Australia's Online Fashion Retailer. [online] Theiconic.com.au. Available at: https://www.theiconic.com.au/about/ [Accessed 17 Jan. 2017]. Wang, S., Noe, R. A., Wang, Z. M. (2014). Motivating knowledge sharing in knowledge management systems a quasifield experiment.Journal of Management,40(4), 978-1009.