Interim Report Project Title Finance Essay - Free Essay Example

Sample details Pages: 7 Words: 2203 Downloads: 9 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? According to the voice of banking and financial services (2013), the UK banking sector is unique due to its remarkable size, efficiency, breadth, dynamism and diversity. In fact, UK banking industry ranks as the third largest, following the USA and Japan. The domestic markets mainly focus on personal and corporate lending, while the international markets are to enable the fine functioning of global capital markets and provides investment management services to overseas corporations especially the multinational companies, governments including China, and individuals particularly the affluent investors throughout the world. Don’t waste time! Our writers will create an original "Interim Report Project Title Finance Essay" essay for you Create order The total employees in the banking sector are merely 3.5% of UKs total workforce, while the sector services about 95% of the population. In 2005, the total assets were 5526 billion, while the lending and deposits were, respectively, 3284 billion and 4984. The selected banks are the HSBC Holdings plc, Royal Bank of Scotland Group, and Standard Chartered PLC, which are dominating the banking industry in the United Kingdom. Rational for of ratios used in the analysis Considering that the financial ratios are easy to use and understand this paper use multiple ratios including the financial ratios and the non-financial ratios to compare the financial positions and operating performance of different banks. Rinastiti and Philip (2004) once developed a model to divide the ratios into five groups. They are the profitability ratios, the asset utilizations ratios, the long-term solvency ratios, short-term solvency ratios, and the market value ratios. With respects to the banking sector, it is different. The banking industry, as is in the service sector, is specific since it has no or small amount of inventory but large amount of financial assets. Then it is possible for large amount of capitals, reserves, bad loans, and other special accounts. Then the ratios used in this paper are not similar to those in the manufacturing sectors or the retailing sector. Due to the unavailability of several groups of data, the main ratios are listed in the table below: Table 1 five groups of financial ratios ÃÆ' £Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬ Ratios 1 Return on average ordinary shareholders equity 2 Risk asset ratio Tier 3 Risk asset ratio Total 4 Core tier 1 capital 5 Advances to core funding ratio 6 underlying cost efficiency 7 Employee engagement 8 Risk-adjusted revenue growth 9 Basic earnings per ordinary share 10 Dividends per ordinary share growth 11 Return on average total assets 12 Book value per share 13 market share 14 Net asset value per share Preliminary competitive analysis using five forces Threat from new entrants Threat from new entrants, in accordance with Porter (1998) refers to the pressures that potential new entrants may pose to a company, which is likely to increase the competition. According to the voice of banking and financial services (2013), the UK bankers are advantageous because of remarkable size, efficiency, breadth, dynamism and diversity. As a consequence, due to the large amount of capital that is used in the banking industry, threat from new entrants is modest. Threat from substitute products Threat from substitute products in accordance with Porter (1998) refers to the pressures that the substitute products pose to a company, which may be featured by higher quality, efficiency and effectiveness. According to Berger et al (2003), the significant global integration is under way particularly in the banking sector. With the globalization and the degradation of cross-border Corporation and investment that removed multiple regulatory barriers to inter-national banking, as well as the innovation in the financial market, the substitute products are available to the domestic customers and the overseas customers. Then there is considerable threat from the substitute products. Moreover, in the United Kingdom, there are a wide range of other consumer financial service organisations such as the building society, Abbey and so on. Bargaining power of the buyers Bargaining power of buyers in accordance with Porter (1998) refers to the pressures that consumers are likely to propose to a company to bring down the prices or ask for higher quality and more efficient and effective services. With respect to UK banking industry, buyers mainly include the wholesalers and the consumers. Then for the consumers, they have limited bargaining power, while the wholesalers especially the large wholesalers have great bargaining power in accordance with the game theory. Bargaining power of the suppliers Bargaining power of suppliers in accordance with Porter (1998) refers to the pressures that suppliers are likely to propose to a company so as to raise prices. With respects to the UK banking industry, the suppliers are mainly the domestic investors, savers and the overseas suppliers. Notably, the overseas corporations, governments with currency surplus, and individuals who are in general the affluent investors throughout the world have different bargaining power largely depending on the amount of capital they provide. Intensity of competitive rivalry Intensity of competitive rivalry in accordance with Porter (1998) is depending on the number of companies in the market and the production and the needs of the products or services. With respect to the UK banking industry, the retail and commercial banking markets are dominated by Barclays plc, HSBC Holdings plc, Lloyds Banking Group, Royal Bank of Scotland Group, and Standard Chartered PLC with businesses and branches around the world. For the small banks, there is fewer advantages. Prior competitive analysis using PEST analysis Political and legal factors According to the voice of banking and financial services (2013), the UK government has set out a number of robust plans to stimulate the economy, as well as firstly safeguard the economy from the damage impacts of the recent financial crisis. Accordingly, there are a number of strong, sensible and proportionate growth oriented regulations to support these plans. In particular, the financial sector has more plans. So as to sustain the ability of banks to lend to the economy and satisfy the needs of a wide range of consumers, there would be a balanced approach that is applicable to renew the banking sector. Then the British Bankers Association and Accenture, along with senior bankers, successful business leaders, politicians, prestigious academics and influential commentators, has discussed the UK banking sector and the way forward in this volatile time. It is considered that global recession especially the European recession and further weakness of sovereign debt are likely to have re percussions for the UK economy, as well as direct and indirect impacts on UK banks. Then, most European countries began to initiative to strengthen financial regulation and bank balance sheets. Moreover, the European financial transaction tax and other proposals are thought to be influential to the UK banking industry. According to Treanor (2013), the Bank of England recently discussed its newly granted powers to force commercial banks to hold more capitals against the potential bubbles, which is drastically dangerous in todays economy. Taking the 2008 financial crisis into consideration, it is useful to curtail the risks of bankers to build up the capital. Moreover, this act is also in line with Banks Financial Policy Committee (FPC), when it starts to use its new tools. More specifically, some particular sectors should especially hold more capitals including the commercial property. There is already legislation that are recently under through the parliament, indicating that this power is likely to granted to the Financial Policy Committee in the coming meeting. As a consequence, the banking industry is expected to have a lower growth rate due to this act. In line with the general rule, one additive percentage increase in the capital usually increases the costs of borrowers by as high as 25 basis points, which in turn would decrease the bad loans. However, the Gross Domestic Product would be cut down by about 35 basis points. In addition, the regulators also require that the bank should ascertain that customers are capable to pay back loans before the mortgages are to be approved has sounded the death knell for these specific loans. In brief, these acts are on one hand unpopular with some banks due to the decreasing growth rates expected. On the other hand, it is inevitable and banks should actively react to the potential impacts of such regulatory regime. Economic factors On one hand, the financial crisis has profound influential on the whole economy throughout the world, especially in the banking industry. Financial Services Authority (2009) pointed out that this crisis is mainly due to the inadequate capital and liquidity. As a consequence, in the short run, most bankers prefer to have capital so as to prevent from losses and support lending that is mostly used in the real economy, eventually reacting to the existing slow down. Further, the crisis reveals the macro-imbalances and financial market developments and innovations. The macro-imbalances are mainly due to the oil exporting counties such as Iran which lead to substantial fluctuation in oil prices and the operating expense of vehicle, and the rapidly developing countries such as China, which are with large amount of account surpluses and extremely high saving rates. Adversely, account deficits are in other countries such as USA and UK, which has respectively the largest and third bank sector. Recently, the exchange rates between the surplus countries and the deficiency countries are committed to be soundly managed or even be fixed. The financial market innovation is one of the main reasons of the recent banking crisis. This is largely stimulated by the macro-imbalances. The origination, packaging, trading and distribution of securitised credit instruments are more and more popular in recent years. This directly or indirectly influences the banking industry, increasing the risks. According to the voice of banking and financial services (2013), the European economies especially the Eurozone countries and their banks will continually exert direct and indirect but great influences on United Kingdom and its banking sector. The head of the International Monetary Fund, on the other hand, asserted that the Eurozone shows signs of recovery, representing regional growth in the coming year (Wearden, 2013). Admittedly, the attitudes of International Monetary Funds representatives may be useful to restore the consumers confidence as well as the bankers, the borrowers, and the lenders. Similar to the positive expectation, the common would promote their confidence in the private sector, which is crucial to recovery. Similarly, according to the voice of banking and financial services (2013), the financial and economic crisis has exerted great influential on UK banks during the past several years. Both the bankers and the governors have taken timely and effective actions to strengthen the balance sheets and adapt their business models to the new environments. The growth rate of UK in 2012, as a consequence, was much higher than those of its neighbours in the Europe especially the Eurozone. As is shown in figure 1, the real interest rates in UK is decreasing in the past several decades, indicating less profitability for banks. Figure 1 UK real interest rates (20 year bonds, yield at May 25 or nearest week day) Source: Bank of England Real Yield curve calculations In addition, according to the Guardian (2012), recently, the Consumer Price Index showed a down trend in the past years. But it is still above 2%. At the same time, Retail Price Index showed similar trend. On the other hand, in 2012, the GDP growth rate was primarily negative. In 2011, the GDP was 1,750,395.00, representing a slight growth of 1%, while in the year of 2009 the GDP was 1,573,466.00, representing a drastic negative growth rate of -4%. But at the end of the past year, the GDP growth rate began to be positive, representing recovery of the economy, which is encouraging to the banking industry. Figure 2 UK CPI and RPI headline indicators, % Source: the Guardian, 2012 Figure 3 United Kingdom GDP growth rate Source: www.tradingeconomics.com. Social and cultural factors the main task for UK banks is to balance the different needs of a wide range of customers and the society. Both the needs of individuals and the macro economic growth rate should be taken into consideration. In this sense, the social and cultural factors should be seriously considered, since the needs of the customers are highly depending on these factors. Technical factors UKs banking industry has greatly evolved with technologies especially the information technology. In 2006, the expenditure on IT investment amounted to $ 23 billion, much above that of other countries. These investment set out the e-banking age. As a consequence, it becomes the biggest single driver of UK banking industry. From 2004 to 2008, the compound annual growth rate (CAGR) of IT spending in UK banking sector was as high as 8.1 %. On one hand, the technological improvements considerably streamline the information collecting and distributing processes, promoting the efficiency of the banking sectors. More specifically, the online channel, especially the multi-delivery channel, is convenient to all kinds of the customers due to the broadened access to the Internet and the strengthened safety of online transactions. Moreover, the phone banking, internet banking and automatic banking are popular among most peoples. Automatic teller machines (ATMs) are a typical innovation in the past years in the banking sector. From 1994 to 2004, the ATM network doubled to 50,000 in merely 10 years. These allowed more branches of the banks at lower costs and shorter time to launch new products. The information technologies have, on the other hand, made it possible for the financial market innovation more and more complicated. The explosive and complex financial market innovation is likely to bring considerable risks to the banks. Further, the increasing use of alternative banking channels (European Central Bank, 1999) has greatly changed the traditional way of understanding and undertaking banking activities both from the customers perspective and from the bankers perspective.

The Theme Of Social Class And Order - 1928 Words

The Underlying Theme of Social Class and Order In literature, themes are carefully interwoven with other aspects of the story and are slowly unraveled as the plot advances to reveal to bigger picture. Authors use themes as a method to connect with their audience on a personal and relatable level. Each individual interprets the theme in their own manner depending on the past experiences they have had. Similarly, each author brings a sense of individuality and authenticity to their works, impacting their subject matter and area of focus, in this case specifically the theme. The Time Machine by H.G. Wells is a science-fiction novel in which the Time Traveller traverses the time dimension to the year 802,701 AD. He then encounters the†¦show more content†¦An author’s background is a prime factor in the subject of a book. H.G. Wells’ humble upbringing and political beliefs can easily be discerned through the writing. Wells grew up in poverty during the late 19th century in Kent, Great Britain, causing him to bec ome interested in class conflict. His socialist views come across in The Time Machine as it is his way to show the consequences of excessive capitalism, thus the theme of social class and order emerges. Wells uses evolution as a form to vindicate and reason the extreme schism of classes present in the book. The Time Traveller, which seems to be an extension of Wells’ persona, implies â€Å"the exclusive tendency of richer people [†¦] and the widening gulf between them and the rude violence of the poor† was a key factor in the splitting of the human species along class lines, a direct hit on capitalism (Wells 62). The Elois or the â€Å"Haves†, live aboveground the in comforts of their realm, while the Morlocks or the â€Å"Have-Nots† reside underground, as a result of the â€Å"[continual adaptation] to their conditions of their labour† (Wells 63). The Time Traveller continue to explore the future realm’s social order, discovering the radical differences between each class. For instance, the Eloi are focused on beauty and comfort, and are content on â€Å"living upon the labours of fellowman†, while the Morlocks assumed the role of the worker, relying on instinct and primitive desires (Wells

The poets present powerful feelings Essay Example For Students

The poets present powerful feelings Essay Choose three poems from the pre-1900 section of your anthology in which the poets present powerful feelings and emotions. Compare the poems showing how the poet uses language to produce these effects  For my three poems I have chosen to do two by John Keats, To Autumn and La Belle Dame Sans Merci, and To His Coy Mistress by Andrew Marvell. In the two Keats poems there is ample description to write about, whereas in the Marvell poem, there is still description, but the themes and aspects contrast greatly with the seriousness of Keats. In To Autumn Keats is expressing his feelings towards autumn. He does this, not as if it were a season, but as if it was a person. This knowledge is first gained in the title, as it is being addressed to autumn, this immediately personifies it and gives the reader instant knowledge that this poem will be more than description about the season and is showing the fact that Keats has feelings and emotions connected with it. La Belle Dame Sans Merci is a poem in which Keats, taking on the role of his character, is describing events that happened to him in which his emotions were tossed around and played with. Finally, To His Coy Mistress is a poem written by Marvell to amuse his friends, but in which he shows his feelings for a woman. Though she does not exist, he has described their conversation as if it actually happened. In To Autumn, time plays a very important factor. Keats brings up the point that the season autumn is just part of an endless yearly cycle and that life is also part of this cycle. He illustrates this by having the image of the maturing sun, this gives the feeling that time is slowly passing and that every year the sun is born in spring and dies in winter. The emotions encapsulated in this is that Keats is trying to console the sorrowful autumn which is sad as it is dying, he even brings in images of death with sort-dying, mourn and dies. This is again referring back to the theme of time and the fact that it will eventually end. The indication that Keats is sad about that is indicated by the adjective wailful, which is used when death and sadness are present, indicating that he feels strongly about the fact that autumn, the sun and time are dying slowly. Time is also a main theme in To His Coy Mistress. Marvell is creating the images that if he had all the time in the world, how much he would spend it just looking at her An age at least to every part  This shows that he wishes time can never end and that he will never grow old and neither will his mistress. He really wants this to happen and feels very strongly about it as,  Nor would I love at a lower rate  indicates. He then creates a fantastic metaphor with the line  Deserts of vast eternity  This is brilliant when interpreting his feelings. He uses the adjective vast which creates an image of an enormous object, it is also very onomatopoeic which means that it sounds like what it means, and it is said slowly which increases the effect of it. The context that its in is of time but it is also describing his love and affection for his mistress and that it is absolutely huge. Marvell also creates images of death and that what he and his mistress will eventually end and the time they wasted can never be regained, he does this by using the words vault, ashes and grave. He is increasing the feeling of his love in that he is trying to cram as much of it as possible into the time that they have but even that will not be enough and they will regret this when they are both dead. .u939c8145b6e9e032171e48e0239f64f5 , .u939c8145b6e9e032171e48e0239f64f5 .postImageUrl , .u939c8145b6e9e032171e48e0239f64f5 .centered-text-area { min-height: 80px; position: relative; } .u939c8145b6e9e032171e48e0239f64f5 , .u939c8145b6e9e032171e48e0239f64f5:hover , .u939c8145b6e9e032171e48e0239f64f5:visited , .u939c8145b6e9e032171e48e0239f64f5:active { border:0!important; } .u939c8145b6e9e032171e48e0239f64f5 .clearfix:after { content: ""; display: table; clear: both; } .u939c8145b6e9e032171e48e0239f64f5 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u939c8145b6e9e032171e48e0239f64f5:active , .u939c8145b6e9e032171e48e0239f64f5:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u939c8145b6e9e032171e48e0239f64f5 .centered-text-area { width: 100%; position: relative ; } .u939c8145b6e9e032171e48e0239f64f5 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u939c8145b6e9e032171e48e0239f64f5 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u939c8145b6e9e032171e48e0239f64f5 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u939c8145b6e9e032171e48e0239f64f5:hover .ctaButton { background-color: #34495E!important; } .u939c8145b6e9e032171e48e0239f64f5 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u939c8145b6e9e032171e48e0239f64f5 .u939c8145b6e9e032171e48e0239f64f5-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u939c8145b6e9e032171e48e0239f64f5:after { content: ""; display: block; clear: both; } READ: Dirac quote EssayIn La Belle Dame Sans Merci an incredibly beautiful woman seduces a knight. Keats indicates the feelings that the knight has feelings for the woman by using words, which are traditionally used with love and affection. Examples are garland, fragrant and sweet, though these words are not linked directly with love but they are associated with it and courting, which is what the knight and his lady are doing as they have just met. To His Coy Mistress also contains similar references with song, sweetness and pleasure. Keats in his poem gives the impression that the relationship between the knight and the lady is very unruly as the adjective wild is repeated thre e times. It is also taking place in an undignified place, elfin grot; this does not quell the feelings that Keats is still expressing for the lady and the beauty that he is describing is still evident. Throughout To His Coy Mistress feelings of love are expressed blatantly and more subtly, as love, heart, lust and pleasures. As well as having these indicators throughout the poem Marvell uses phrases and metaphors such as while the youthful hue Sits on thy skin like morning dew My vegetable love should grow Vaster than empires, and more slow The iambic rhythm increases the effect of his words by having the compliments come in a regular torrent, further helping him get across his feelings more easily. La Belle Dame Sans Merci is about the supernatural. This is indicated within the tone of the poem and also the words that are included within the poem. The tone of it is very dreamlike and it portrays an absence of time. Keats creating the image that the knight is in contact with people beyond the grave, gives the lack of time. Also the reader builds up a picture that the woman is not entirely human as she takes him to her elfin grot. She also feeds him strange substances such as roots of relish sweet, which can induce hallucinatory effects further deadening the knights judgement. She also gives him honey wild and manna dew; both of these are traditional foods associated with the Gods. In some ways Keats is saying that she is being blasphemous in taking them but she takes them with such ease in that she could be allowed to take them. Either way it backs up the feeling that she is not human as she is either in league with the Gods or a very powerful enemy of them, for who else would i ncur their wrath? This gives a feeling of wonder to the reader, as this is something beyond this world. Keats himself is expressing his feelings that no human knows for sure what lies beyond this planet and by showing the idea of there being something that we dont understand, puts the love between the knight and the woman into greater context as their feelings are spanning two worlds. On the other hand To Autumn is about nature and the real world. It is concerned with the passing of time within a season, or, as Keats personifies it, a person. Nature, especially the seasons, is a continuos cycle whereas; the supernatural portrayed in La Belle Dame Sans Merci is a long line, which has no end. Yet, in both, Keats is portraying deep feelings of love, kindness and affection, which are displayed clearly. Marvell also displays his feelings of love within poems, imagery and words.