Osamu Dazai Essay

Osamu Dazai was one of Japanese novelist and considered one of the most important storytellers of postwar Japan. While known primarily as a novelist, Dazai also earned recognition for his numerous short stories, including â€Å"Omoide† (â€Å"Memories†), â€Å"Sarugashima† (â€Å"Monkey Island†), and â€Å"Ha† (â€Å"Leaves†), which were published in Bannen, his first collection of short stories. Like most of his longer fiction, Dazai’s short stories are autobiographical and reflect a troubled life marred by alcoholism, drug addiction, and several suicide attempts. Nevertheless, Dazai’s fiction showcases his artistic imagination and unique confessional narrative technique. Dazai was born the youngest of ten children in Kanagi, a small town in northern Japan, to one of the wealthiest families in the region. While Dazai’s later years were turbulent, he grew up a sensitive child in comfortable surroundings. Later in his life , however, his wealthy background led to self-consciousness, contributing to a nagging sense of isolation that is an undercurrent throughout his fiction. Dazai underwent his apprenticeship in writing during the 1920s while attending secondary schools in Aomori and Hirosaki and published many of his early stories in magazines founded and run by aspiring young authors. By the time he attended Hirosaki Higher School, however, Dazai began to live the unconventional lifestyle that brought him much fame. Despite his widely recognized talent, however, alcoholism, drug addiction, affairs with geishas, suicide attempts, and frequent psychological traumas plagued him the rest of his life. In 1930, Dazai enrolled in the Department of French Literature at Tokyo University, but by the end of his first year, he ceased attending classes. Instead, Dazai became involved with left-wing politics, caroused, and renewed his relationship with a geisha he met while attending Hirosaki Higher School. His family disapproved of this relationship, leading to one of Dazai’s suicide attempts. He attempted to take his own life on at least three other occasions and finally succeeded in a double suicide with a young war widow in 1948. This episode, among several instances of double suicide in Dazai’s fiction, is retold in his widely acclaimed novel, No Longer Human. Dazai’s highly autobiographical fiction first garnered popular and critical attention after the publication of his first collection, Bannen (The Final Years). The first and most significant of these stories is â€Å"Omoide† (â€Å"Memories†). With its highly personal tone, â€Å"Memories† reveals a common narrative technique in Dazai’s writing. Revealing his childhood and adolescent traumas, as well as his need for companionship and love, Dazai’s first-person narrative attracts the reader’s sympathy while raising doubts about the authenticity of the narration beca use of exaggerated rhetoric. â€Å"Gangu† (â€Å"Toys†), another tale in Bannen, illustrates Dazai’s playfulness. In this tale, the narrator — after briefly relating his financial troubles — details his plans to concoct a tale recounting the memories of an infant. While these and other early pieces exemplify the personal tone of much of Dazai’s work, another group of tales shows his talent for imaginative storytelling. Two tales — â€Å"Gyofukuki,† translated as â€Å"Metamorphosis,† and â€Å"Sarugashima,† translated as â€Å"Monkey Island† — provide good examples of this. In place of the Dazai like protagonist present throughout most of his other short fiction; â€Å"Metamorphosis† is about a peasant girl who, on the verge of puberty, takes on the appearance and identity of a fish. â€Å"Monkey Island† presents two humanoid monkeys as its protagonists. In astonishment, one of the monkeys soon realizes they are the objects of attention, rather than the spectators, of the humans walking through the zoo. In his final years, he composed a series of stories that evince his interest in domestic issues, as titles such as â€Å"Villon’s Wife,† â€Å"Father,† and â€Å"Family Happiness†Ã¢â‚¬â€suggest. As critics have remarked, the stories of these collections are among the few works of artistic value produced by a Japanese author under the strict government censorship during World War II. While famous in Japan and avidly read — especially by the younger generation — Dazai has not achieved the international stature of Japanese writers such as Natsume Sseki, Kawabata Yasunari, Mishima Yukio, and End Shusaku. This is partly due to problems with translating Dazai’s highly personal style. Yet Dazai has earned himself a position in modern Japanese letters more or less comparable to that of an F. Scott Fitzgerald, as opposed to a William Faulkner, in modern American literature. Donald Keene, Dazai’s principal English translator, has described him as a Japanese writer â€Å"who emerged at the end of World War II as the literary voice of his time.† While Dazai’s body of work is sometimes criticized for its narrow scope, many critics maintain that h is fiction contains some of the most beautiful prose in modern Japanese literature. Dazai became celebrated for two short novels, The Setting Sun and No Longer Human, both translated into English. I read both of them back when I was reading all the Japanese fiction I could get my hands on, but did not care for either, and have not read either again. The Setting Sun was published in 1947, and is set in those years shortly after the end of the war. It was a very popular novel, and the title came to represent Japanese of the upper classes who had fallen because of the war and American occupation. But Dazai was already well known for personal characteristics reflected in the major characters as well–nihilism, drunken dissipation, despair (a kind of model for our hippie generation)–so, although the central character is a young woman, Kazuko, the novel is read as strongly autobiographical. This is true for No Longer Human, too, which is perhaps even more autobiographical, and, as Donald Keene describes it, is â€Å"an attack on the habits and traditions of Japanese society, but above all †¦ a record of his alienation from society.† (1063) I was not attracted to the narcissistic qualities in these two novels, or to the fact that Dazai, after having failed in two previous love suicides (in which the women succeeded) succeeded in a love suicide June 13, 1948 (he and the woman drowned in the Tamagawa Reservoir). I just didn’t much like him or his characters–never used those novels in courses I taught. But I did use one of his short stories, Villon’s Wife, several times, because it was in the anthology I most frequently used in the survey course of Japanese Literature, Donald Keene’s Modern Japanese Literature, and I actually came to like that story very much (sort of like Oe’s The Catch, the exception that proves the rule). The husband in the story may be the closest self-portrait of all, and the most despicable, in his drunken dissipation, unfaithfulness, and unforgivable treatment of his wife, but the story is told by the wife, who, in her attempts to accommodate herself to all of this comes through as an attractive and courageous character–and you realize that even Dazai, in his more sober moments perhaps, must have appreciated her virtues. Anyway, that’s the one I recommend–then, if you want to read either, or both, of the novels, you will be reading fiction that was very popular in Japan in the decade after the end of the war, and may, indeed, reflect some of the values in flux in that traumatic time, particularly for young Japanese who would have seen themselves as having lost everything. I will be comparing Akutagawa to Edgar Allan Poe next month for their short lives and some of the qualities of their fiction, and it is easy to compare Dazai to Akutagawa (1892-1927), as well . Akutagawa was more of Tanizaki’s generation, but died in his late 30s, as a suicide, as Dazai did. But, I am happy to say, I am very fond of Akutagawa–a highly disciplined literary artist. (MAIN BODY) â€Å"NO LONGER HUMAN† This book, by Osamu Dazai, is an example of the Japanese genre of shishosetsu, a kind of autobiographical fiction. It’s different from what we think of as autobiography, in that the purpose is not so much to tell a story – there is no real emplotment, beginning, middle, end in the traditional (or Aristotelian) sense, but rather, the text is a sort of rambling exploration of the self. Style is de-prioritized, sincerity and immediacy are tantamount. There is no constrained form, but rather, an attempt to establish a direct link between author and reader, to explain a particular perspective. The book is largely autobiographical, based on events from Dazai’s own life. He was a literary rock star, but a deeply miserable guy, attempting suicide several times before finally succeeding. There’s actually a monument at the spot where he killed himself (along with his mistress), and apparently people gather there on the anniversary of his death every year. In any case, the book itself is interesting. It makes me want to learn Japanese, for starters, because no matter how great the translator, there’s no getting around the fact that the grammatical structure of Japanese is completely different from that of English, most importantly, for this book perhaps, in that it is entirely possible, and even common, to construct a sentence in Japanese with no subject. Apparently the entire book is written in this form, which would be particularly appropriate to the work itself. Though I wonder if the Japanese reader would really think of this as particularly artful, given that it’s apparently a standard thing to them. But I guess that’s a question for psycho-linguists to answer. The book is the related story of a very unhappy guy who is essentially chronicling his downward spiral. Though it’s hard to say if it’s really a downward spiral – though he does pinpoint a moment at which he ceased to be human, itâ €™s not entirely clear that he was ever really human (by his own definition) to begin with. One question is what it means, in his eyes, to be human. There is a clear parallel to Notes from the Underground (Dazai was big into Dostoevsky, and the main character refers to Crime and Punishment), in that both are notes from deeply unhappy men who are convinced of their own uniqueness, but there are definitely differences. Dostoevsky’s character is raging against rationality, and the way in which it dehumanizes people, so in a sense, though he calls himself a mouse, etc, he could be seen as claiming that he is really the only human. Dazai’s character, Yozo, sees himself as inhuman, mainly, it seems, because he lacks certain basic human traits. He claims, for instance, that he has never felt hungry. However, there is also a certain issue of domination at play – he is unable to say no to anyone, to turn down anything. In this sense, one could say that he is entirely determined by the outside world. Despite the fact that he has an inner life, he keeps it hidden from the outside world. In fact, his behavior is entirely, he claims, an act, he â€Å"plays the clown† for the amusement of others, refusing to let his own feelings show. But I’m not certain if this is really the case. For instance, he wants to be an artist, and actually disobeys his father in order to pursue his artistic career, and confesses to the other authority figure in his life, Flatfish, that he wants to make art. So it seems as though the masking process is incomplete in this case, and at times he does behave authentically. I wonder if the same could be said for the Underground Man? I think that it’s slightly different in his case, in that the construction of the Underground Man is such that he can’t behave authentically, because he has no stable self. Yozo, on the other hand, certainly has an inner life, it’s just a rather empty one. He doesn’t seem to have any real will of his own, or rather, the will that he does have is purely towards self-destruction – he can get booze and drugs, and drink himself into a stupor, without any difficulties. But then again, he also seems to have a brief lull of happiness, directly following his marriage. But even there, it’s hard to say if he’s happy. Maybe it’s most accurate to say that he is so constructed as to be incapable of happiness? Hmmm. There’s more thinking to be done here. Unfortunately, I seem to like each Dazai Osamu (1909-1948) book less than the previous one. No Longer Human (Ningen Shikkaku, 1948) is more epigrammatic that The Setting Sun (Shayo, 1947), but perhaps I am too old for it (as I was once too young to read Proust) to be much moved for the plaint of a creature too delicate for the world. I can’t muster sociological interest in it as social history of the 30s either, since dissipitation is basically timeless (though the preferred means vary). I read the epilogue differently from translator and longtime Columbia professor Donald Keene: as showing the notebook’s writer was successful at mimicking good nature, not that his widow is right and the writer wrong. (â€Å"In the way that most men fail to see their own cruelty, Yozo had not noticed his gentleness and capacity for love†-p. 9; really? a capacity for love? and gentleness? or solipsism mixed with diffidence?) I am not so sure that Keene was right that the Japanese â€Å"are certainly much more like Americans than they are like their ancestors of one hundred years ago. As far as literature is concerned, the break with the Japanese past is almost complete† (p. 7), though this is more credible now than it was six decades ago. Dazai seems very traditionally Japanese to me in many ways, a descendant of Sei Shà ´nagon both in wit and to some degree in aesthetics (Dazai is still plenty delicate and fairly indirect, even about what she would have considered vulgar and even sordid matters, very regretful and very perishable). Would Keene have been moved to translate Dazai, if there was nothing of the Japanese tradition that Keene venerates in Dazai? Let alone, recall translating Dazai â€Å"as if I were writing a book of my own,† an experience he only otherwise had with Kenkà ´Ã¢â‚¬â„¢s Essays in Idleness (On Familiar Terms, p. 189). I like Keene’s characterization of Yozo as a man â€Å"who is orphaned from his fellows by their refusal to take him seriously† (p. 8, see p. 139), which in turn is a result of his desperate clowni ng. Of course, this resonates with my experience of people not believing I could possibly be serious when I am, and feeling I’m not like other people, incapable of â€Å"getting by.† And â€Å"unusual or extravagant things tempt me† (p. 23). It is interesting that someone who felt himself different from an early age and for whom â€Å"it would be no exaggeration to say that my only playmates while I was growing up were girls† (48) became a diffident lady-killer rather than a homosexual. Ã…Å'ba cannot forget his abuse by a female servant when he was young. In high school, he played the buffoon. At university, he finds bad influence from Horiki and leads a life of debauchery (nonstop smoking, alcohol abuse, promiscuity), culminating in a double suicide (it cannot seriously be billed a â€Å"love suicide†) in which the married woman drowns and he survives. After being expelled from the university, Ã…Å'ba is â€Å"clan and sober† for a time in a relationship with an innocent young woman, but Horki shows up and leads Ã…Å'ba back into temptation, now adding morphine to alcohol abuse and being incarcerated in a mental asylum, where he is numb rather than violent. As for being zombified by Japan’s defeat, Dazai seems to me to have been as self-destructive and intellectually nihilistic while the Japanese Empire was rising as in the general anomie after Emperor Hirohito renounced divinity and the US occupied the archipelago. (Imamura’s â€Å"Pigs and Battleships† show some of this social breakdown and women who were better at surviving it than the men.) The original publication sold more than six million copies in Japan, more than any Japanese novel other than Kokoro (1914) by SÃ… seki Natsume. A manga version was published in 2009, the centenary of Dasai’s birth, and also filmed. (CONCLUSION) Attending Meiji Gakuin University from the age 15 to 19, Toson gradually became aware of literature under the influence of unconventional traditions of the school. Toson literature is even said to originate during his days at the university. Toson joined Bungakukai, a literary group, and as a romantic poet, published a collection of poems including Wakanashu. Later, Toson turned a novelist and published Hakai (â€Å"The Broken Commandment†) and Haru (â€Å"Spring†), and is thus regarded as a prominent naturalist novelist. His other works include, Ie (â€Å"Family†), considered to have achieved the highest level in Japanese Naturalism literature, Shinsei (â€Å"New life†), a confession of his own incestuous relationship with his niece, Yoakemae (â€Å"Before the Dawn†), a historical novel modeled on the life of his father. Altbough he began his serialization of Tohonomon (â€Å"The Gate of the East†) in 1943, he died of a stroke at his own hom e in Oiso, Kanagawa prefecture on 22nd of August. (BIBLIOGRAPHY LIST) Dazai, Osamu, and Donald Keene. No Longer Human. Tokyo: Charles E. Tuttle, 1981. Print. Lyons, Phyllis I., and Osamu Dazai. The Saga of Dazai Osamu: a Critical Study with Translations. Stanford, CA: Stanford UP, 1985. Print. Hachimaki, Emi. â€Å"ä º ºÃ©â€"“å ¤ ±Ã¦   ¼.† é â€™Ã§ © ºÃ¦â€"‡å º «Ã£â‚¬â‚¬Aozora Bunko. Aozora, 1 Jan. 1999. Web. 15 Nov. 2011. . (REFERENCE) http://kirjasto.sci.fi/dazai.htm http://www.jlit.net/authors_works/dazai_osamu.html http://wlc.drake.edu/wordpress/japanese/2010/02/28/osamu-dazai%E3%80%80%E5%A4%AA%E5%AE%B0%E6%B2%BB%EF%BC%89/

Ethical Dilemma Essay

1. Keeping in mind the facts and timeline of this situation, discuss Lavonda’s situation in terms of legal and ethical issues. This case has many aspects of sexual harassment, and is very complicated. Karline is partially correct in that it was common knowledge that Lavonda and Allen were intimate. It was because Lavonda crossed that line, and did not report the relationship, that Lavonda’s sexual harassment suit becomes unstable. Her legal suit would carry more weight if she had gone through the proper channels to report the misconduct when it occurred. There is also an ethical problem if she tries to convince the new hire to work for Allen. 2. Discuss Lavonda’s alternatives and possible professional and private outcomes for her. The probable cost to Lavonda if she reports the sexual harassment case is a long legal struggle and possible loss of her job. We are aware that Lavonda’s mother has cancer, is undergoing chemo, and Lavonda needs the income to care for her mother. If Lavonda loses the case, she faces a risk of not being able to help her mother, especially if Allen spreads nasty rumors about her throughout the industry. She should probably be aware that if she pursues legal case that this will follow her throughout her career. This could negatively influence future employers or could show them that she has a moral character. 3. Is Allen in violation of sexual harassment and/or sexual discrimination laws in United States? Yes. He has displayed intimidating behavior, sexual harassment, and is very manipulative of women in the workforce. Whenever Lavonda asked him to stop, and he continues his behavior, this becomes harassment. 4. Certainly Allen has damaged Lavonda’s performance level: however, discuss whether he has created a legally hostile work environment. By definition of a hostile work environment, he has created it. There are three criteria that must be met: (1) the conduct must be unwelcome; (2) the conduct becomes severe, pervasive, and regarded as so offensive to alter the conditions of employment; (3) conduct was so bad that a reasonable person would find it hostile or offensive. All the employee needs to prove is that the conduct interfered with her work performance.

The Negative Side of Use from CIBC Bank on Social Media Research Paper

The Negative Side of Use from CIBC Bank on Social Media - Research Paper Example    Apparently, the continuously changing business environment and customer needs for a more convenient banking system have altogether motivated CIBC to inculcate social media as a key innovation in its customer services network. Use of Social Media by CBIC In its recent endeavors, CIBC has been rendering a varied range of banking services to its customers using social media in multiple linguistic forms, such as conveying its messages both in English and in French to the Twitter accounts. This, in turn, helped the organization in eradicating the barriers of cultural conflicts or segregation in delivering equal care to its customers in a global context. It is worth mentioning in this context that with the rapid changes taking place in the technology sector worldwide, the need for carrying the business through the social media has become very important for CBIC in achieving its goal of international competency. Subsequently, CIBC uses the most preferred social media in the worldwide c ontext, such as Facebook and Twitter, with the intention to advertise its new offers directly communicating with the targeted customers and also with the aim to deliver online services more effectively and in an informed manner (CIBC Mellon, 2013). In precise, CIBC opted for the inclusion of social media in its customer service network, with an intention to learn about the varied needs of the customers and also to attract a new range of customers towards its technology aided services. Strategically, the main aim of using the social media by CIBC is to preserve its efficiency in customer relationship management with the aid of direct-to-customer approach. The effectiveness of using social media by CBIC A critical examination of the organizational performance reveals that the social media was much effective for CBIC in the initial stages of its implementation. The strategy helped CBIC to attract a new range of customers and stay connected with the customers in the global platform, irr espective of the persisting cultural differences. However, after some years, there was a major problem observed in its usage, which indicated towards the inefficiency of the organization in continuously updating and managing its developmental strategies (Canadian Imperial Bank of Commerce, n.d). To be illustrated as a case example, the bank had engaged many Twitter and Facebook accounts with the purpose of delivering different services to its wide-ranging customer groups. However, owing to the managerial limitations of the bank, an involvement of many Twitter and Facebook accounts created confusion among the customers in availing the services of the bank as information sources became vibrant and multiple. Additionally, customers were also facing the huge problem in the searching the appropriate social media page on its website for availing the intended banking service owing to the deficiency of the bank to manage the technology resources efficiently. In order to mitigate such obstac les in customer service deliverance, the bank adopted the policy of greeting its online customers through Wikipedia.  Ã‚  

Nervous system Research Paper Example | Topics and Well Written Essays - 250 words

Nervous system - Research Paper Example Facial nerve paralysis is in turn more common with Lower Motor Neuron (LMN) lesion than Upper Motor Neuron (UMN) lesion. Forehead muscles can be tests by asking the patient to raise her eyebrows in order to determine if UMN or LMN disease is the real cause behind face drop. If the furrows of the forehead are asymmetrical, it is a LMN disease like Bell’s palsy. If otherwise, it is UMN disease like pseudobulbar palsy. The patient in the case study is most probably suffering from Bell’s palsy because that is more often the cause of â€Å"muscle weakness on one side of the face† (El-Bab, 2011, p. 2134). Assigning this patient to a novice or proficient nurse depends on physical condition of the patient. If there are no extreme symptoms like blindness, seizures, or severe headache, if facial drooping started suddenly, and if there is no wrinkling on forehead, the patient has no stroke and is suffering from Bell’s palsy. In that case, treatment with steroids should immediately begin which can be handled by a novice nurse as well. El-Bab, M.F., Makhdoom, N., Al-Harbi, K.M., Baghdadi, H.H., & Alam, A. (2011). Facial Nerve Palsy Incidence, Clinical Feature, and Prognosis in Al-Madinah Al-Munawarah. Journal of Basic and Applied Scientific Research, 1(11),

Exxon Mobile and Shell Research Paper Example | Topics and Well Written Essays - 750 words

Exxon Mobile and Shell - Research Paper Example Shell is also engaged in same type of oil business as Mobil did even though their abilities are comparatively less than that of the Exxon Mobil Company. This paper briefly compares Exxon Mobil and Shell in terms of their current policies, the way of operation, marketing strategies and international expansion etc. Record oil prices for the past few years helped oil companies in general and Exxon Mobil in particular to accumulate huge profits. The financial conditions of Exxon Mobil is far better than Shell. â€Å"Exxon Company has nearly $40 billion in cash reserves and another $225 billion in repurchased stock. Thats enough money to pay a nearly 60 percent premium, in cash, for every share of its next largest competitor - Royal Dutch Shell† (Daily News). In short Shell is nothing in front of Mobil as far as the market capitalization or financial abilities are concerned even though Shell is placed second behind the Exxon (see the figure given below for more details). According to many economical and business analysts, Exxon may buy the Royal Dutch Shell Oil Company in the near future itself in order to establish an absolute monopoly in the oil market. Even though the oil prices were rising up, Shell like oil companies failed to develop new projects to take advantage of the favorable business climate. On the other hand, Exxon Mobil succeeded developing new projects for the maximum exploitation of the higher oil price. Both shell and Exxon Mobil give more priority to the evaluation of market interests as part of their marketing strategies. The call for energy efficient vehicles and environment friendly energy sources is growing in the world because of the severe environmental problems caused by the burning of fossil fuels. Under such circumstances, it is not advisable for these oil companies to increase their production beyond certain levels. They are closely watching the market trends and making changes in their oil prices

Tackling the Incidence of Cardiovascular Diseases Essay

Tackling the Incidence of Cardiovascular Diseases - Essay Example According to statistics obtained from the World Health Organization (WHO), CVDs are the primary cause of deaths worldwide. It is estimated that more people die from CVDs annually than from any other disease. The WHO further reports that in 2004, CVD was responsible for 17.1 million deaths globally. This represented 29% deaths worldwide. Of these, 7.2 million deaths were due to coronary heart disease, while stroke was associated with 5.7 million deaths. The WHO estimates that by 2030, deaths due to CVD would amount to 23.6 million, most of which will have resulted from stroke and heart disease (â€Å"WHO Fact Sheet†). In sight of this grim reality, it is high time that scientists explore beyond conventional medicine. Current treatment of CVD involves balloon angioplasty, heart transplantation, coronary artery bypass surgery, and repair or replacement of valves. Though widespread, there are always implications and setbacks to these methods. In most cases of heart failure, congen ital cardiac anomalies and post-myocardial infarctions, the only possible cure is heart transplantation because â€Å"the ischemically injured failing heart lacks contractile myocardium, functional vasculature, and electrical integrity, which has made treatment of the underlying injury untenable† (Ott, Davis and Taylor, 2005). However, due to a severe scarcity of organ donors and the fear of organ rejection, transplantation science needs a full-blown transformation. Therefore, in this proposal, I put forth possible areas of research in tissue engineering and regenerative medicine that are emerging as promising frontiers in transplantation technology, and how they can be used in tackling the incidence of cardiovascular diseases. Here, I wish to explore new technologies in tissue engineering and discuss how I will approach my research objectives for postdoctoral studies in this field. Context and literature review Most of the current research is focused on tissue engineering to reproduce functional myocardium, heart valves and even the entire heart from the cells of the patient. In the treatment and prevention of heart failure, technologies that induce cardiac repair are being sought after. Therefore, â€Å"cell-based† regenerative medicine is the first step in this direction (Ott and Taylor, 2006). â€Å"By combining stem and progenitor cells with increasingly complex scaffold materials and culture conditions†, it is possible to create an entirely new organ derived from the patient’s own cells (Song and Ott, 2011). Studies have been done on cardiac stem cells isolated from â€Å"uncommitted cardiac progenitor cells† of ventricles. These cells can mature into smooth muscle, endothelial and cardiomyocyte cells that can be used to produce organs or parts of an organ (Ott et al, 2007). In another approach, skeletal myoblasts, myogenic or angiogenic precursors, hematopoietic progenitor cells and blood-derived or bone marrow mesench ymal cells can be used for cardiovascular repair (Ott, McCue and Taylor, 2005). Using cardiac derived stem cells, progenitor cells or cardiomyocytes, a functional and contractile myocardium can be engineered using â€Å"biocompatible scaffold materials† (Tee et al, 2010, p. 683). Scaffold materials are required to guide the division of cells to enable the development of an organ just like an extracellular matrix. Attempts are being made to make patient specific scaffolds through bio manufacturing (Bartolo et al, 2009, p. 212). Failed cardiovascular components can be replaced with â€Å"biocompatible tissues that have the potential to rapidly restore the lost function and slowly regenerate by remodeling†

Crime Prevention and Private Policing Essay Example | Topics and Well Written Essays - 1000 words

Crime Prevention and Private Policing - Essay Example This therefore means that private police are to create any preventive means so as not to distract the legitimate flow of the business, which in most cases the distraction of the flow will be due to the presence of crime. In the presence of more focus private police on protecting assets and property, there is a guarantee to establish a normal flow or condition of the business. Furthermore, with the inclusion of private policing in a private organization, the implementation of justice within this bound is straightforward such as firing an anomalous employee who committed crime against the prevailing policies or established law of the company. However, private policing creates an image for the criminal justice system as for-profit venture. Furthermore, as a nongovernmental action, it is not bound by the same legal requirements as public policing. These concerns are discussed in this paper. Introduction Traditional policing has long been a controversy regarding its ability to decrease th e level of crime rate. It is for this reason that adding more number of police on duty has become a significant decision as it is integrated with the idea that doing so will help reduce the crime rate. However, as far as the underlying truth about it is concerned, there are many research studies that try to investigate whether adding more police officers on duty will help alleviate or discourage the presence of crime. The available literature revealed that there is no significant evidence to support the assumption or claim that if there is addition of number of police personnel on duty, crime rate will decrease (Worrall, 2008). However, even if there is no associated truth behind the above traditional claim regarding policing, people are still able to rely on private policing to ensure safety, protection and to ward off any incident linked to the formulation of crime (Plant & Scott, 2009). This for instance is common to happen in private companies trying to maximize its level of con trol for the safety of their operations. It is for this reason that the work at hand tries to investigate the relevant advantages and disadvantages of private policing. Advantages of Private Policing One significant advantage of private policing is the inclusion of the level of focus that private police place in their actual responsibility. The level of focus is important because it may signify the intensity of control that private police may employ in the actual control or prevention of the crime. It is therefore highly observed that private policing personnel focus on loss control and prevention at a great level (Worrall, 2008; Byrne & Marx, 2011). They have no other concern but to focus on asset and property protection. For this reason, there are many private establishments that try to employ private policing for this concern as it is highly advantageous on their part considering the point that the level of focus placed in control and prevention of crime is involved. This promote s the idea that as far as mass private property is concerned, private sector for policing may well performed compared to the public sector in policing based on the level of focus they can give in actual prevention and control.  

European Union Enlargement Essay Example | Topics and Well Written Essays - 2500 words

European Union Enlargement - Essay Example From this study it is clear that  Turkey is most prospective country to join the Union with the aim of proving that Islam is compatible with western values and culture. All Balkan nations are also eligible enough to become potential members of the union. The move is aimed at ensuring peace is maintained. All this activities prove that the union is becoming very powerful. This enlargement however may cause the splitting of the union due to various social economic and political challenges facing it.This paper outlines that European Union, however, has been torn apart by two conflicting visions. One of the ideas is the Euro-nationalism or multi polarity that Tony Blair intensely opposes. Some members want the European Union to be an independent actor and lock out the United States. The other idea is referred to as Atlanticism, where the western alliance is maintained fully. When polls were conducted results showed that many members wanted the EU to be a super power like America. A few activities by the increasing size of the AU members are causing the European Union to fall behind economically. They involve the supervision of the Euro, the argument on Iraq and the constitution.  The foreseeable constrain that seems to be facing union has given the union a wakeup call to cautiously evaluate the challenges and risks of trying to expand and increase more members.  The greatest worry among top officials is the eastern expansion and the economic consequences that will be experienced.

Textbook evaluation Assignment Example | Topics and Well Written Essays - 1750 words

Textbook evaluation - Assignment Example As a result, it can be concluded that the nature of learning/ teaching atmosphere may varies under different circumstances. Hence, it is important to keep in mind the requirements and significance of the specific learners in certain teaching conditions when selecting the criteria for the assessment of resources. There are many guidelines and checklists for evaluating the course material aimed to meet the needs of ELT situations as proposed by majority of different authors. In the next section, some of these criteria are discussed in detail. According to McDonough and Shaw (1993, p.66) the criteria needed to evaluate the course material is categorized into two stages, external and internal. investigate different criteria in two stages, namely external and internal stages. According to these researchers, the proposed criteria helps in thorough evaluation of the learning material which is considered comprehensive to meet the ELT needs of the learners and the teachers around the globe. I t has been pointed out by the researchers that the evaluation process is not concrete in nature; it changes with the learning/ teaching needs. The external evaluation revolves around meeting the needs of the intended audience, the ability of the learners/teachers, the framework of the material it is based on, the arrangement and presentation of the units/lessons, the author’s analysis on language and understanding. ... eaking and listening abilities involved in the resources, the association of tests and exercises to meet the needs of learners and the central focus of the course material, the suitability of the material to match the different learning styles, and how the teachers and the learners balance the use of course material in an appropriate manner. Explanation of the criteria to be used: Selection and organization of content: It is regarded as one of the most important standard to evaluate the material. Selection and organization of content is important. McDonough and Shaw (1993, p. ) describe that learners become more proficient in second language when they are speaking. This situation occurs when the language skills are taught in a collective manner rather separately. Level: The level to which the ELT learners can get advantage of a course book is established on the suitability of the course book to the point that it meets the needs of the concerned students. For example, the use of gramm atical features, the words and terms to be incorporated in reading texts and the standard of lessons should be beyond the ability of the students. General Appearance: Numerous researchers have underlined the significance of the exterior or the outer look of a course book. McDonough and Shaw (1993, p.61) have stressed the significance of external assessment because it â€Å"offers a brief overview of the outside of the book†. They emphasize the need for a significant and critical assessment of the claims made on the outer cover of the ELT books for teachers and the students. As Dougill (1987, p. ) have emphasized that course books should have interactive outlay to motivate and involve the students in learning. It has been observed that students judge the book by its outer look or the cover.

Assignment Essay Example | Topics and Well Written Essays - 2500 words - 3

Assignment - Essay Example The only goals they need are how to conform to the traditional, typical place of females within that society. You are a girl so you can only become and wife and mother, any other aspirations are unrealistic, foolish, and in some cultures, blasphemous in the eyes of some faiths and philosophies. Women have been discriminated against throughout history for a number of societal, philosophical, traditional, and religious reasons; they are at the mercy of highly patriarchal environments. In some locations of the world the key element that deprives most women of realizing their greatest potential is the lack of education. Women, it is believed, do not need to be educated and are often legally not allowed to be educated in many cultures in the world even today. The human rights violation represented by denying education to female citizens literally cripples and impedes their quality life from the day they are born to their day their life ends. This essay will prove the potential human rights violations with a long list of negative side-effects related to denial of female education throughout the world Lack education maintains female disadvantage in the labor force, disadvantage economically, confines them to their society’s defined gender roles, and is a distinct violation of the individual human rights of women. Education is the most valuable tool and greatest means to positive opportunities in the future, hence its denial to women have led to serious quality of life concerns. Firstly, understanding some of the history of gender inequality reveals just how common discriminations against girls and women truly are. It some ways the denial of female education may be the oldest of all human rights violations. Then by delving further in to how the lack of female education contributes directly to the inequality in the labor force, as foundational and higher education dictate the quality of employment and incomes they are able to earn.

Fish Philosophy Essay Example for Free

Fish Philosophy Essay Just finished reading â€Å"FISH Philosophy† the book and so great it was. It’s a tiny book (two hours of focused read would do) that talks about how to transform your work place (or even your life) into a fun place to enjoy and be excited to come to again and again. I don’t want to talk about the great story in the book, and the details of how a fish market ignited the idea – hence the name FISH – for a manager to transform her workplace, as I want to encourage you to get it and read it. The philosophy is simple, and goes by applying four ingredients that will turn the place from stress and dullness into relax and fun. The ingredients of FISH philosophy are as follows: 1. Choose your attitude 2. Play 3. Make their day 4. Be there Ingredient 1 – Choose your attitude: This is the platform to build upon, and the core concept that everything else depends on. You have the freedom of choice of your attitude: an optimistic and happy attitude, or a pessimistic and sad one. Choose to be happy, smiling, easy going, ignorant of mistakes, and you’ll discover how beautiful and shining you and your place would be. On the other hand, choose to be angry, frowning, hard-headed, picky on mistakes, isolated, and you’ll discover how miserable your day would be! â€Å"Choose your attitude† is the hardest ingredients, but sets the stage for all other ingredients to happen. So work on your attitude, and work on it now. Ingredient 2 – Play: Have fun, even if you have lot’s to do with deadlines nearing, and don’t seem to have enough in your schedule. All that stress come from the fact that you prevent yourself from enjoying what you do. Make it a playful project, an enjoyable study, an easy shopping, a fun meeting, etc. If you cannot enjoy what you do, then try to have some pleasant moments between the heavy tasks you work on. Engage with colleagues or family to create a play yard out of your place. Ingredient 3 – Make their day: By having fun yourself, work on extending that to others who surround you. Make their day by expressing how you’re grateful to have them, or by cheering them up. Get them out of their misery by offering advice and help. You cannot imagine how cheerful you would be when giving a hand to someone. Ingredient 4 – Be there: Be present to your family, customers, colleagues, and people by giving full attention to who calls for you to advice or help. Don’t be ignorant to those calls†¦ get to answer them on the spot, or at least dedicate some time to connect with those you care about to listen to. Ignoring a call for help from your wife, your son, a colleague, or a customer could yield to disappointments and sometimes problems that you could’ve avoided earlier. Applying FISH to your life: I actually believe in the importance of these ingredients to have better place whether at home or at work, and below are some ideas I’m thinking of to practice those in my life (both at home and at work): Ideas| At Home| At Work| Choose your attitude| Be happy, smiling, and open-minded, soft, easy going, ignorant to small acts or mistakes. Spell out the good thoughts, and ignore the bad ones. Say hi or salam to everyone you face! | Play| Educate by fun, and stop yelling. Make the shopping a learning experience for your child where he or she looks for the stuff and picks them up. Enjoy home fixes. Watch cartoons with your child while commenting. | Start your meetings with fun or jokesPost some funny pictures or comics to your desk, or common placesHave a board so employees can post some jokesHave a gaming console and work on a gaming competition| Make their day| Compliments, Compliments, Compliments. Bring your wife some flowers. Invite the family to a day out (I really mean the invite here, and not like †¦ we’re bored, let’s go out). Bring your child something he or she likes (candy for instance). | Compliment the work and attitude of your colleagues. Engage with customers and pinpoint their pains and offer solutions with what they already have. Avoid bad news, and be a passenger of the good ones! | Be there| Listen to your wife and don’t offer solutions, just listen (we all can hear, you need to listen! ). Have a conversation with your child on school or how others deal with him. Listen to the unsaid, and express your willingness to offer help if needed. | Listen to pains from colleagues and customers and offer solutionsStop emails and phone calls if someone calls for your adviceGive full attention when talking to your colleagues or customersNot all people are comfortable talking about their problems, so dig deep within the soles and look for faces that need help. | Remember to work hard on setting the stage by choosing the right attitude! Just finished reading â€Å"FISH Philosophy† the book and so great it was. It’s a tiny book (two hours of focused read would do) that talks about how to transform your work place (or even your life) into a fun place to enjoy and be excited to come to again and again. I don’t want to talk about the great story in the book, and the details of how a fish market ignited the idea – hence the name FISH – for a manager to transform her workplace, as I want to encourage you to get it and read it. The philosophy is simple, and goes by applying four ingredients that will turn the place from stress and dullness into relax and fun. The ingredients of FISH philosophy are as follows: 1. Choose your attitude 2. Play 3. Make their day 4. Be there Ingredient 1 – Choose your attitude: This is the platform to build upon, and the core concept that everything else depends on. You have the freedom of choice of your attitude: an optimistic and happy attitude, or a pessimistic and sad one. Choose to be happy, smiling, easy going, ignorant of mistakes, and you’ll discover how beautiful and shining you and your place would be. On the other hand, choose to be angry, frowning, hard-headed, picky on mistakes, isolated, and you’ll discover how miserable your day would be! â€Å"Choose your attitude† is the hardest ingredients, but sets the stage for all other ingredients to happen. So work on your attitude, and work on it now. Ingredient 2 – Play: Have fun, even if you have lot’s to do with deadlines nearing, and don’t seem to have enough in your schedule. All that stress come from the fact that you prevent yourself from enjoying what you do. Make it a playful project, an enjoyable study, an easy shopping, a fun meeting, etc. If you cannot enjoy what you do, then try to have some pleasant moments between the heavy tasks you work on. Engage with colleagues or family to create a play yard out of your place. Ingredient 3 – Make their day: By having fun yourself, work on extending that to others who surround you. Make their day by expressing how you’re grateful to have them, or by cheering them up. Get them out of their misery by offering advice and help. You cannot imagine how cheerful you would be when giving a hand to someone. Ingredient 4 – Be there: Be present to your family, customers, colleagues, and people by giving full attention to who calls for you to advice or help. Don’t be ignorant to those calls†¦ get to answer them on the spot, or at least dedicate some time to connect with those you care about to listen to. Ignoring a call for help from your wife, your son, a colleague, or a customer could yield to disappointments and sometimes problems that you could’ve avoided earlier. Applying FISH to your life: I actually believe in the importance of these ingredients to have better place whether at home or at work, and below are some ideas I’m thinking of to practice those in my life (both at home and at work): Ideas| At Home| At Work| Choose your attitude| Be happy, smiling, and open-minded, soft, easy going, ignorant to small acts or mistakes. Spell out the good thoughts, and ignore the bad ones. Say hi or salam to everyone you face! | Play| Educate by fun, and stop yelling. Make the shopping a learning experience for your child where he or she looks for the stuff and picks them up. Enjoy home fixes. Watch cartoons with your child while commenting. | Start your meetings with fun or jokesPost some funny pictures or comics to your desk, or common placesHave a board so employees can post some jokesHave a gaming console and work on a gaming competition| Make their day| Compliments, Compliments, Compliments. Bring your wife some flowers. Invite the family to a day out (I really mean the invite here, and not like †¦ we’re bored, let’s go out). Bring your child something he or she likes (candy for instance). | Compliment the work and attitude of your colleagues. Engage with customers and pinpoint their pains and offer solutions with what they already have. Avoid bad news, and be a passenger of the good ones! | Be there| Listen to your wife and don’t offer solutions, just listen (we all can hear, you need to listen! ). Have a conversation with your child on school or how others deal with him. Listen to the unsaid, and express your willingness to offer help if needed. | Listen to pains from colleagues and customers and offer solutionsStop emails and phone calls if someone calls for your adviceGive full attention when talking to your colleagues or customersNot all people are comfortable talking about their problems, so dig deep within the soles and look for faces that need help. | Remember to work hard on setting the stage by choosing the right attitude!

Hewlett Packard Case Study

Hewlett Packard Case Study Hewlett-Packard or HP is an American multination information technology corporation that that sells hardware, software and other related business services. The product line of HP includes a wide range such as PCs, servers, software, imagining products and scanners just to name a few. Hewlett-Packard also provides services and consulting business around its products and partner products. In 2013 under Lenovo, Hewlett-Packard was the world’s second biggest PC vendor. But with so many product lines and options for such a big company such as Hewlett-Packard what problem would it run into? This issue is this would cause a high cost of design manufacture, and introduce a new product, feature, or option exceed the additional revenue it is likely to generate. Not to mention this also what costs would be related with too little or too much inventory of such a product. You also want to consider the additional supply chain intricacy along with how does this all effect the customer satisfaction. Kathy Chou who is vice president of Worldwide Commercial Sales, responsible for growing HP’s worldwide commercial business through direct and indirect channels, said â€Å"While revenue grew year over year, our profits were eroded due to unplanned operational cost,† She later stated that â€Å"As product variety grew, our forecasting accuracy suffered, and we ended up with excesses of some products and shortages of others.† Constantly growing product variety would need to meet the increasing customer needs was the mode HP took. The problem at hand is was between marketing and operations. Marketing and sales always wanted more, more SKUs, more features, and more configurations where as supply chain mangers always wanted less, less to forecast, less inventory and less complexity to manage. Analysis and Evaluation Hewlett-Packard has always been within the top 5 of Vendor market share over that last 10 years, as you can see from the chart below of its Global laptop market share by units, percent from 2006-2013. Global laptop market share by units, percent (2006-2013) Rank 2006 2007 2008 2009 2010 2011 2012 20131 1 Dell 15.9 HP 18.1 HP 18.2 HP 19.1 HP 17.9 HP 16.6 HP 16.1 Lenovo 16.9 2 HP 15.9 Dell 14.2 Dell 14.1 Acer 12.9 Acer 13.9 Lenovo 12.5 Lenovo 14.9 HP 16.2 3 Acer 7.6 Acer 9.7 Acer 10.6 Dell 12.1 Dell 12.0 Dell 11.7 Dell 10.7 Dell 11.6 4 Lenovo 7.0 Lenovo 7.4 Lenovo 7.5 Lenovo 8.0 Lenovo 10.9 Acer 10.8 Acer 10.2 Acer 8.1 5 Toshiba 3.8 Toshiba 4.0 Toshiba 4.6 Toshiba 5.0 Asus 5.4 Asus 5.7 Asus 6.9 Asus 6.3 Others 49.8 46.5 44.9 42.8 40.0 42.8 41.2 40.8 If HP wanted to stay on top each and every year it would need an answer, a tool, a way to fix all problems at hand and continue to improve each and every year. Recommendations HP wouldn’t be anything if it didn’t innovate and Kathy Chou was fully aware of this. With the rising cost and inefficiency associated with managing millions of products and configurations this problems â€Å"took their toll† she stated which soon she followed with â€Å"and we have no idea how to solve it.† So what would it take to solve these issues? HP would need a tool that would use a procedure or formula for solving a problem. HP combined a team within its company which would consist of HP Business Group, HP labs and HP Strategy Planning and Modeling and also individuals from a handful of consultancies and universities in order to work on the problems. Over the year the team would produced an analytically driven process for evaluating new products, created a tool for prioritizing existing products in a portfolio and developed an algorithm that solves the problem many times fast than previous technologies, which advancing the theory and practice of ne twork optimization. With all the hard work done over the years the team would be reward in 2009 with an Edelman award (worlds leading prize for excellence in operations research practices) in developing what was called a revenue coverage optimization (RCO). This tool would allow HP to offer customers significantly improved service and at the same time save the company tons of money in improved efficiencies. Once this tool was implemented, HP would be improved customer service and saved the company a lot of money. Also this improved efficiency with HP business with their customers. References: Turban, Efraim, and Jay E. Aronson. Decision Support Systems and Intelligent Systems. 9th ed. Upper Saddle River, NJ: Prentice Hall, 2001. Print. Hewlett-Packard (HP). What Is ? Web. 14 Nov. 2014. . Executive Biography. HP. Web. 14 Nov. 2014. . Gartner Says PC Vendors Experienced a Happy Holiday Season with Fourth Quarter Worldwide Shipments Increasing 12 Percent. Gartner Press Release. January 14, 2004. Questions for the Case When offering to many product lines and options that a big company such as HP might face are A high cost of design, manufacture, and introduce a new product, feature, or option exceed the additional revenue it is likely to generate The cost associated with too much or too little inventory for such a product, not to mention additional supply chain complexity, and how does all that impact customer satisfaction. The possible conflict between marketing and operations is that marketing and sales always wanted more, more SKUs, more features, more configurations where as supply chain mangers always wanted less, less to forecast, less inventory and less complexity to manage. HP combined a team within which would consist of HP Business Group, HP labs and HP strategy Planning and Modeling and also individuals from a handful of consultancies and universities. Produced an analytically driven process for evaluating new products Created a tool for prioritizing existing products in a portfolio Developed an algorithm that solves the problem many times fast than previous technologies, which advancing the theory and practice of network optimization. Whatis.com defines algorithm as a procedure or formula for solving a problem. An HP Senior Fellow Robert Tarjan has developed algorithms useful in everything from improving chip design to routing telephone calls, from optimizing deliveries in transportation networks to improving searches of large data sets. A software tool Revenue Coverage Optimization (RCO) was been developed that allowed HP to offer customers significantly improved service and at the same time save the company tons of money in improved efficiencies. This tool in 2009 won the Franz Edelman Award, the worlds leading prize for excellence in operations research practices. Robert Tarjan has received such major national and international awards as the ACM Turing Award, known as the â€Å"Nobel Prize† of computing, the Nevanlinna Prize and most recently, the Blaise Pascal Medal in Mathematics and Computer Science. References: Algorithm. What Is ? Web. 14 Nov. 2014. . Robert Tarjan. HP Labs. Web. 14 Nov. 2014. . The benefits HP gained from implementation of this model over all resulted in improved customer service and saved the company a lot of money. Also this improved efficiency with HP business with their customers.

Effect of the Financial Crash on Islamic Banks in the UK

Effect of the Financial Crash on Islamic Banks in the UK Chapter 1: Introduction Introduction to the Subject Background of the Subject General Objective The purpose of this study is to examine how the internal factors of the Islamic Banking affected their performance before, during and after the financial crisis in the GCC in comparison to the conventional banking in the same area. Research Questions This study aims to answer the following questions: How did the financial crisis affect the profitability of Islamic Banks in comparison to Conventional Banks? What are the internal factors (bank specific characteristics) that influence the profitability of Islamic banking for every year from 2006 2009? Did these factors have the same impact on the profitability of Islamic Banking before, during and after the financial crisis? Did these internal factors influence the profitability of Islamic Banking in the same manner as of the Conventional Banking? Need for the Study Significance of the Study Assumptions of the Study Limitations of the Study Although we cannot neglect the importance of the external factors on the profitability of Islamic Banking, they were not included in this study. To understand the reason behind this decision, we need to go through the different types of external factors and how they are classified: Macroeconomic Factors Country Regulation Rules Bank Regulation Rules These factors were not included for the following reasons: Since we are examining the performance of 92 banks (27 Islamic Banks and 65 Conventional Banks) in 6 countries, the number of countries used in the study is not significant enough to study the impact of GDP and inflation accurately on Bank profitability especially when examining each year separately Country Regulation Rules as per the IMF Database, although it differs slightly for the selected countries, did not change over the period from 2006 to 2009. This means that for each bank, these factors remained constant. Data about Bank Regulation Rules could not be obtained for GCC banks Delimitation of the Study This study was delaminated to the Islamic and Conventional Banks in the GCC whose data could be obtained in the Bankscope database. Chapter 2: Literature Review Overview of Islamic Banking Islamic Baking has established as an alternative to conventional interest-based banking. The first stirring of the Islamic Banking movement began in 1963 by Dr. Ahmed Alnajar in a small town in Egypt, called Mit Ghamar. Dr. Alnajar completed his education in Germany and found that it had many saving banks operating on interest. He took the idea from a savings bank in Germany and created his own small Islamic bank that was interest free. After Dr. Alnajars small bank proved successful, the establishment of other Islamic banks followed. In 1971, the Nasser Social Bank was founded in Egypt with the objective of lending out money as a charity on the basis of a profit and loss sharing system and helping people in need. And in 1975, the idea of Islamic banking spread to other Islamic regions such Dubai Islamic bank in United Arab Emirates and The Islamic Development (IDB) Bank in Jeddah, Saudi Arabia (Wilson, 1990). Even though Islamic Banking has only been around for thirty years and is still in an evolving stage, Islamic Banking is the fastest growing segment of the credit markets in the Muslim countries. In 2009, Assets held by Islamic Banking banks rose by 28.6 percent to $822bn from $639bn in 2008, according to The Bankers â€Å"Top 500 Islamic Financial Institutions† survey while conventional banks posted annual asset growth of just 6.8 percent. Furthermore, GCC states accounted for $353.2bn or 42.9 percent of the global aggregate, while Iran remained the largest single market for Shariah-compliant assets, accounting for 35.6 percent of the total. Finally, Islamic banking operations are not limited to Islamic countries but are spreading throughout the world. One reason is the growing trend toward transcending national boundaries, and unifying Muslims into a political and economic entity that could have a significant impact on the pattern of world trade (Abdel-Magid, 1981). Islamic Banking Rules and Principles Islamic banking rules are according to the Islamic Shariah derived from the Quran and prophet Mohameds sayings. The three main practices that are clearly prohibited in the Quran and the prophets sayings are, Riba (Interest), Gharar (Uncertainty), and Maysir (Betting). Prohibition of Riba or any predetermined or fixed rate in financial institutions is the most important factor in the Islamic principles pertaining to banking. As stated in the Quran â€Å"Allah forbids riba†. Riba means an increase and under Shariah the term refers to the premium that must be paid by the borrower to the lender along with the principle amount as a condition for the loan (Omar and Abdel, 1996). Gharar occurs when the purchaser does not know what has been bought and the seller does not know what has been sold. In other words, trading should be clear by stating in a contract the existing actual object(s) to be sold, with a price and time to eliminate confusion and uncertainty between the buyers and the sellers. Maisir is considered in Islam as one form of injustice in the appropriation of others wealth. The act of gambling, sometimes referred to betting on the occurrence of a future event, is prohibited and no reward accrues for the employment of spending of wealth that an individual may gain through means of gambling. Under this prohibition, any contract entered into, should be free from uncertainty, risk and speculation. Contracting parties should have perfect knowledge of the counter values intended to be exchanged as a result of their transactions. Therefore, and according to Ahmed and Hassan (2007), the principles of Islamic banking and finance enshrined from al-Quran and Prophet Mohamed‘s Sayings can be summed up as follows: Any predetermined payment over and above the actual amount of principal is prohibited. The lender must share in the profits or losses arising out of the enterprise for which the money was lent. Making money from money is not acceptable in Islam. Gharar (deception) and Maisir (gambling) are also prohibited. Investments should only support practices or products that are not forbidden or even discouraged by Islam. Islamic Banking Products Islamic Banking products have to be done according to Islamic rules and principles, based on profit and loss sharing as well as avoiding interest. According to BNM statistics 2007, Al Bai Bithaman Ajil financing is the most common in Islamic Banking. There are a lot of Islamic Banking products; however there are some famous Islamic products that will be discussed in this section. 1. Al Bai Bithaman Ajil /BBA This involves the credit sale of goods on a deferred payment basis. In BAA, the Islamic bank will purchase certain assets on a deferred payment basis and then sell the goods back to the customer at an agreed price including some margin or profit. The customer will make payment by installments over an agreed period. A fixed rate BBA is a powerful hedging tool against interest rates (Rosly, 1999). 2. Murabahah Murabahah is a contract of sale. The Islamic Bank acts as a middle man and purchases the goods requested by the customer. The bank will later sell the goods to the customer in a sale and purchase agreement, whereby the lender re-sales to the borrower at a higher price agreed on by both parties. These are more for short term financing 3. Mudharabah According to Kettel (2006), Mudharabah is a basic principle of profit and loss, where instead of lending money at a fixed rate return, the banker forms a partnership with the borrower, thereby sharing in a ventures profit and loss. Mudharabah is an agreement between the lender and entrepreneur, whereby the lender agrees to finance the project on a profit sharing basis according to a predetermined ratio agreed by both parties concerned. If there are any losses the lender will bear all the losses. 4. Musharakah Musharakah means partnership whereby the Islamic institution provides the capital needed by the customer with the understanding that they both share the profit and loss according to a formula agreed before the business transaction is transacted. In Musharakah all partners are entitled to participate in the management of the investment but it is not compulsory. Musharakah can help in providing financing for large investments in modern economic activities 5. Al Ijarah Ijarah means meaning to give something on a rental basis. In Ijarah, the bank acquires ownership based on the promise and leases back to the client for a given period. The customer pays the rental but the ownership still remains with the bank or lender. As the ownership remains with the lessor (bank), it continues to give the service for which it was rented. Under this contract, the lessor has the right to re-negotiate the quantum of the lease payment at every agreed interval to ensure rental remains in line with the market rates (Hume, 2004). 6. Wadiah Wadiah is a trust contract and the bank provides gift (hibah) and various types of benefits to the customer. This is exactly like a normal conventional savings account. 7. Istisna Istisna allows one party buys the goods and the other party undertakes to manufacture them according to agreed specifications. Normally, Istisna is used to finance construction and manufacturing projects. 8. Salam Salam is defined as the forward purchase of specified goods with full forward payment. This contract is normally used for financing agricultural production. According to Hassan (2004), Salam based future contracts for agricultural commodities, supported by Islamic Banks, can help to overcome the agricultural financial problems Table 2.1 lists the products of conventional banking and their correspondent products in Islamic Banking. Source: Obaidullah, 2005 Financial Crisis and the Islamic Banking To be able to compete with conventional banks, Islamic banks have to offer financial products that are comparable to the ones offered by the conventional banks. This exposes the Islamic banks to similar credit, liquidity and risks driven by market instability. Despite that, Islamic banks managed to remain stable at the early phases of the crisis. That was driven by three main Factors. First, Islamic banks financing activities are strongly tied to the real economic activities than their conventional counterpart. Even though Musharakah and Mudharabah both provide better risk sharing while keeping strong link to the real sector, they are used minimally for different reasons. Most financing activities are done through Murabah and Ijarah followed by Istinsa. In the GCC and during 2007, Murabaha comprised of 65.4%, Ijarah 12.78% and Istinsa 2.83%. Both Murabaha and Ijrah transactions require the Islamic bank to know the clients purspose and use of finance as well the ownership of the asset by the bank. This help in ensuring that the funds are used for their stated purposes. On the other hand, conventional banks do not require disclosing the use of funds as long as the client is believed to creditworthy or can post suitable collateral. Second, Islamic banks avoid direct exposure to exotic and toxic financial derivative products. Since Shariah prohibits riba and gharar, the asset portfolio of Islamic banks did not include any CDOs, CMBSs, and CDSs which turned out to be highly toxic for conventional banks and amplifying factor for the crisis. These derivative products, initially used for hedging purposes, became device for highly speculative investments among conventional financial institutions. Unavailability of hedging instruments for Islamic financial institutions, which was perceived as weakness before the crisis, became a strengthening factor for them. However, exposure to other investment risks driven from equity markets, sukuk, real-estate and ownership stakes in other businesses remain a source of concern when overdone or undertaken purely for speculative gains. Third, Islamic banks in general have a larger proportion of their assets in liquid form than their conventional counterparts. This is driven by two main reasons: (1) there is no lender of last resort (LOLR) facility available to Islamic banks, and they do not have access to market liquidity in the form of the interbank market, high liquidity was maintained for risk management purpose. (2) Excess liquidity is required due to lack of interest-free short-term investment opportunities as real economic investments require some development period. As the global financial crisis became a global economic crisis, it started to affect Islamic banks in an indirect manner. The financial crisis has triggered a chain reaction whereby the slowdown in the real economies of the developed countries has started to affect economic growth and investment activities in export driven economies of the developing countries through lower trade in goods and services as well as through the declining commodity prices including that of oil. The economic downturn is not only affecting the investment and financing activities of financial institutions including those of Islamic banks, it is also reducing the funding of these banks through lower personal savings and declining corporate profits. It should be noted that most of the Islamic banking industry comprises of commercial banks whose major funding source are retail deposits, investment banking constitutes only a small portion of the industry. Islamic banks in some regions may face risk on their fina ncing and investment side of the balance sheet due to the crisis induced volatility of equity markets where these banks have large positions. Downturn in the real estate markets where these banks have large direct and indirect exposures is also another source of risk. Similarly, the changing wealth position of their high-net-worth (HNW) clients who also hold financial exposure in the hard-hit conventional financial sector of the West and therefore are now postponing any investment plans is also a factor. The relative importance of each of these factors varies by the region. For example, the banks in the GCC and particularly in the UAE are more exposed to real estate market risk, followed by risk of international equity markets. For the banks in Asia, their investments in domestic and international equity markets are a source of concern as equity markets are showing higher volatility. In some of the countries, the existing fiscal imbalance which has widened after the crisis is also a factor in the increased volatility of the markets Previous Literature The study of bank profitability is an important tool to evaluate bank operation by examining the different factors affecting bank profitability and using these factors for management planning and strategic analysis. In the last four decades, many studies have been conducted to study both bank profitability and the determinants of bank profitability either for particular country or for a panel of countries. These studies normally divide these factors into internal factors and external factors. Internal factors represent the bank-specific characteristics such as bank size, liquidity structure; liabilities†¦etc while external factors can be macroeconomic factors such as inflation and GDP growth or Country-specific regulations rules and practices. In the area of banking profitability, many studies have been conducted to investigate the profitability of conventional banks while only few were conducted in the field of Islamic banking. In this chapter, we will review these studies for conventional banking first and then will focus on studies in the Islamic banking field. Then we will cover the conceptual framework of this research. Conventional Banking Different studies have been conducted in the field of conventional banking profitability. Short (1979), Bourke (1989), Molyneux and Thornton (1992), Goddard, Molyneux, and Wilson (2004), Peters et al. (2004) are some of the researchers in the field. Short (1979) is one of the early scholars who studied the relationship between banking profit rates and concentration for sixty banks in Canada, Western Europe and Japan during the 1970s and he included independent variables including government ownership and concentration by using H index to quantify concentration. Results showed that the government ownership impact on profitability varied throughout the countries studied but expressed an overall negative relationship. He also found evidence that indicated higher concentration rates lead to higher profit rates (Short, 1979). Bourke (1989) also compared concentration to bank profitability but included other determinants. Bourke (1989) covered ninety banks in Australia, Europe, and North America between 1972 and 198 and examined different internal and external factors: internal factors such as staff expenses, capital ratio, liquidity ratio, and loans to deposit ratio; external factors such as regulation, size of economies of scale, competition, concentration, growth in market, interest rate, government ownership, and market power. His results show that increase in government ownership leads to lower profitability in banking. He also found that concentration, interest rates, and money supply are positively related to profitability along with capital and reserves of total assets as well as cash and bank deposits of total assets. Bourke adds that well capitalized banks enjoy cheaper access to sources of funds as they are less risky than less capitalized banks (Bourke, 1989). Later, Molyneux and Thornton (1992) studied the determinants of European banks profitability. The paper examined eighteen counties in Europe between 1986 and 1989. This paper replicated Bourkes (1989) work by using internal and external determinants of bank profitability. However, Molyneux and Thornton (1992) results showed that government ownership expresses a positive coefficient with return on capital (profitability) which contradicts with Bourkes findings. Other results were similar to Bourkes, showing that concentration, interest rate, and money supply were positively related to bank profitability (Molyneux and Thornton, 1992). In one of the recent papers on bank profitability on European banks, Goddard, Molyneux, and Wilson (2004) shows similar findings to the paper by Molyneux and Thornton (1992). It investigates the determinants of profitability in six European countries and it covered 665 banks between 1992 and 1998. The study used cross-sectional and dynamic panel models. The variables used in the regression analysis were ROE, the logarithmic of total assets, Off Balance Sheet (OBS) dividends, Capital to Asset Ratio (CAR). The results from both models were similar: evidence reveals that there is a positive relationship between size (total assets) and profitability. Meanwhile, OBS appears to have a positive relationship with profitability for UK but neutral or negative for other European countries. Moreover, results also state that CAR has a positive relationship with profitability. Furthermore, the paper touched on ownership type by indicating that there is high competition in banking due to the fact t hat there is foreign bank involvement in domestic banks, and that profitability is not linked to ownership (Goddard, Molyneux, and Wilson, 2004). Peters et al. (2004) studied the characteristics of banks in post-war Lebanon for the years 1993 to 2000 and compared the results to a group of banks from five other countries in the Middle East including UAE, KSA, Kuwait, Bahrain and Oman for the years 1995 through 1999. They used Return on Equity (ROE) measure profitability and leverage and they employed regression models that relate bank profitability ratios to various explanatory variables. This study tests the relationships between bank profitability and size, asset portfolio composition, off-balance sheet items, ownership by a foreign bank, and the ratio of employment to assets. The results show a strong association between economic growth and bank profitability, whether measured by ROE or ROA. They found that Lebanese banks are profitable, but not as profitable as a control group of banks from five other countries located in the Middle East. Islamic Banking In the area of Islamic Banking, Bashir (2000) assessed the performance of Islamic banks in eight Middle Eastern countries. He analyzed important bank characteristics that affect the performance of Islamic banks by controlling economic and financial structure measures. The paper studied fourteen Islamic banks from Bahrain, Egypt, Jordan, Kuwait, Qatar, Sudan, Turkey, and United Arab Emirates between 1993 and 1998. To examining profitability, the paper used Non Interest Margin (NIM), Before Tax Profit (BTP), Return on Assets (ROA), and Return on Equity (ROE) as performance indicators. There were also internal and external variables: internal variables were bank size, leverage, loans, short-term funding, overhead, and ownership; external variables included macroeconomic environment, regulation, and financial market. In general, results from the study confirm previous findings and show that Islamic banks profitability is positively related to equity and loans. Consequently, if loans and equity are high, Islamic banks should be more profitable. If leverage is high and loan to assets is also large, Islamic banks will be more profitable. The results also indicate that favorable macro-economic conditions help profitability (Bashir, 2000). Hassoune (2002) examined Islamic bank profitability in an interest rate cycle. In his paper, compared ROE and ROA Volatility for both Islamic and conventional banks in three GCC region, Kuwait, Saudi Arabia, and Qatar. He states that since Islamic banking is based on profit and loss sharing, managements have to generate sufficient returns for investors given that they are not willing accept no returns (Hassoune, 2002). Bashir and Hassan (2004) studied the determinants of Islamic banking profitability covers 43 Islamic Banks between 1994 and 2001 in 21 countries. Their figures show Islamic banks to have a better capital asset ratio compared to commercial banks which means that Islamic banks are well capitalized. Also, their paper used internal and external banks characteristics to determine profitability as well as economic measures, financial structure variables, and country variables. They used, Net-non Interest Margin (NIM), which is non interest income to the bank such as, bank fees, service charges and foreign exchange to identify profitability. Other profitability indicators adopted were Before Tax Profit divided by total assets (BTP/TA), Return on Assets (ROA), and Return on Equity (ROE). Results obtained by Bashir and Hassan (2004), were similar to the Bashir (2000) results, which found a positive relationship between capital and profitability but a negative relationship between loans and profitability. Bashir and Hassan also found total assets to have a negative relationship with profitability which amazingly means that smaller banks are more profitable. In addition, during an economic boom, banks profitability seems to improve because there are fewer nonperforming loans. Inflation, on the other hand, does not have any effect on Islamic bank profitability. Finally, results also indicate that overhead expenses for Islamic banks have a positive relation with profitability which means if expenses increase, profitability also increases (Bashir and Hassan, 2004). Alkassim (2005) examined the determinants of profitability in the banking sector of the GCC countries and found that asset have a negative impact on profitability of conventional banks but have a positive impact on profitability of Islamic banks. They also observed that positive impact on profitability for conventional but have a negative impact for Islamic banking. Liu and Hung (2006) examined the relationship between service quality and long-term profitability of Taiwans banks and found a positive link between branch number and long-term profitability and also proved that average salaries are detrimental to banks profit. Masood, Aktan and Chaudhary (2009) studied the co-integration and causal relationship between Return on Equity and Return on Assets for 12 banks in KSA for the period between 1999- 2007. For their research, the used time series model of ADF unit-root test, Johansen co-integration test, Granger causality test and graphical comparison model. They found that there are stable long run relationships between the two variables and that it is only a one-direction cause-effect relationship between ROE and ROA. The results show that ROE is a granger cause to ROA but ROA is not a granger cause to ROE that is ROE can affect ROA input but ROA does not affect the ROE in the Saudi Arabian Banking sector. Conceptual Framework Theoretical framework is a basic conceptual structure organized around a theory. It defines the kinds of variables that are going to be used in the analysis. In this research, the theoretical framework consists of seven independent variables that represent four aspects of the Bank Characteristics. Theses aspects are the Bank Size (Total Assets), Capital Structure (Equity and Tangible Equity), Liquidity (Loans and Liquid Assets) and Liabilities (Deposits and Overheads). Bank profitability is the dependent variable and two measures of bank profitability are used in this study, namely return on average equity (ROAE) and return on average assets (ROAA). In this section we develop the hypothesis to be examined in this research paper. Development of Hypotheses This paper attempts to test seven hypotheses. A hypothesis is a claim or assumption about the value of a population parameter. It consists either of a suggested explanation for a phenomenon or of a reasoned proposal suggesting a possible correlation between multiple phenomena. According to Becker (1995), hypothesis testing is the process of judging which of two contradictory statements is correct. Hypothesis 1: Profitability has a positive and significant relationship with the total assets (ASSETS). Total Assets of a company represents its valuables including both tangible assets such as equipments and properties along with its intangible assets such as goodwill and patent. For banks, total assets include loans which are the basis for bank operations either through interest or interest-free practices. Total assets is used as a tool to measure the bank size; banks with higher total assets indicate bigger banks. Molyneux and el (2004) included total assets in their study and found a positive significant relationship between total assets and profitability. Therefore, total assets are expected to have positive relation with profitability which means that bigger banks are expected to be more profitable. Total assets are converted logarithmic to be more consistent with the other ratios Hypothesis 2: Profitability has a positive and significant relationship with equity to asset ratio (EQUITY). Total equity over total assets measures banks capital structure and adequate. It indicated bank ability to withstand losses and handle risk exposure with shareholders. Hassan and Bashir (2004) examined the relationship between EQUITY and bank profitability and found positive relationship. Therefore, EQUITY is included in this stud Effect of the Financial Crash on Islamic Banks in the UK Effect of the Financial Crash on Islamic Banks in the UK Chapter 1: Introduction Introduction to the Subject Background of the Subject General Objective The purpose of this study is to examine how the internal factors of the Islamic Banking affected their performance before, during and after the financial crisis in the GCC in comparison to the conventional banking in the same area. Research Questions This study aims to answer the following questions: How did the financial crisis affect the profitability of Islamic Banks in comparison to Conventional Banks? What are the internal factors (bank specific characteristics) that influence the profitability of Islamic banking for every year from 2006 2009? Did these factors have the same impact on the profitability of Islamic Banking before, during and after the financial crisis? Did these internal factors influence the profitability of Islamic Banking in the same manner as of the Conventional Banking? Need for the Study Significance of the Study Assumptions of the Study Limitations of the Study Although we cannot neglect the importance of the external factors on the profitability of Islamic Banking, they were not included in this study. To understand the reason behind this decision, we need to go through the different types of external factors and how they are classified: Macroeconomic Factors Country Regulation Rules Bank Regulation Rules These factors were not included for the following reasons: Since we are examining the performance of 92 banks (27 Islamic Banks and 65 Conventional Banks) in 6 countries, the number of countries used in the study is not significant enough to study the impact of GDP and inflation accurately on Bank profitability especially when examining each year separately Country Regulation Rules as per the IMF Database, although it differs slightly for the selected countries, did not change over the period from 2006 to 2009. This means that for each bank, these factors remained constant. Data about Bank Regulation Rules could not be obtained for GCC banks Delimitation of the Study This study was delaminated to the Islamic and Conventional Banks in the GCC whose data could be obtained in the Bankscope database. Chapter 2: Literature Review Overview of Islamic Banking Islamic Baking has established as an alternative to conventional interest-based banking. The first stirring of the Islamic Banking movement began in 1963 by Dr. Ahmed Alnajar in a small town in Egypt, called Mit Ghamar. Dr. Alnajar completed his education in Germany and found that it had many saving banks operating on interest. He took the idea from a savings bank in Germany and created his own small Islamic bank that was interest free. After Dr. Alnajars small bank proved successful, the establishment of other Islamic banks followed. In 1971, the Nasser Social Bank was founded in Egypt with the objective of lending out money as a charity on the basis of a profit and loss sharing system and helping people in need. And in 1975, the idea of Islamic banking spread to other Islamic regions such Dubai Islamic bank in United Arab Emirates and The Islamic Development (IDB) Bank in Jeddah, Saudi Arabia (Wilson, 1990). Even though Islamic Banking has only been around for thirty years and is still in an evolving stage, Islamic Banking is the fastest growing segment of the credit markets in the Muslim countries. In 2009, Assets held by Islamic Banking banks rose by 28.6 percent to $822bn from $639bn in 2008, according to The Bankers â€Å"Top 500 Islamic Financial Institutions† survey while conventional banks posted annual asset growth of just 6.8 percent. Furthermore, GCC states accounted for $353.2bn or 42.9 percent of the global aggregate, while Iran remained the largest single market for Shariah-compliant assets, accounting for 35.6 percent of the total. Finally, Islamic banking operations are not limited to Islamic countries but are spreading throughout the world. One reason is the growing trend toward transcending national boundaries, and unifying Muslims into a political and economic entity that could have a significant impact on the pattern of world trade (Abdel-Magid, 1981). Islamic Banking Rules and Principles Islamic banking rules are according to the Islamic Shariah derived from the Quran and prophet Mohameds sayings. The three main practices that are clearly prohibited in the Quran and the prophets sayings are, Riba (Interest), Gharar (Uncertainty), and Maysir (Betting). Prohibition of Riba or any predetermined or fixed rate in financial institutions is the most important factor in the Islamic principles pertaining to banking. As stated in the Quran â€Å"Allah forbids riba†. Riba means an increase and under Shariah the term refers to the premium that must be paid by the borrower to the lender along with the principle amount as a condition for the loan (Omar and Abdel, 1996). Gharar occurs when the purchaser does not know what has been bought and the seller does not know what has been sold. In other words, trading should be clear by stating in a contract the existing actual object(s) to be sold, with a price and time to eliminate confusion and uncertainty between the buyers and the sellers. Maisir is considered in Islam as one form of injustice in the appropriation of others wealth. The act of gambling, sometimes referred to betting on the occurrence of a future event, is prohibited and no reward accrues for the employment of spending of wealth that an individual may gain through means of gambling. Under this prohibition, any contract entered into, should be free from uncertainty, risk and speculation. Contracting parties should have perfect knowledge of the counter values intended to be exchanged as a result of their transactions. Therefore, and according to Ahmed and Hassan (2007), the principles of Islamic banking and finance enshrined from al-Quran and Prophet Mohamed‘s Sayings can be summed up as follows: Any predetermined payment over and above the actual amount of principal is prohibited. The lender must share in the profits or losses arising out of the enterprise for which the money was lent. Making money from money is not acceptable in Islam. Gharar (deception) and Maisir (gambling) are also prohibited. Investments should only support practices or products that are not forbidden or even discouraged by Islam. Islamic Banking Products Islamic Banking products have to be done according to Islamic rules and principles, based on profit and loss sharing as well as avoiding interest. According to BNM statistics 2007, Al Bai Bithaman Ajil financing is the most common in Islamic Banking. There are a lot of Islamic Banking products; however there are some famous Islamic products that will be discussed in this section. 1. Al Bai Bithaman Ajil /BBA This involves the credit sale of goods on a deferred payment basis. In BAA, the Islamic bank will purchase certain assets on a deferred payment basis and then sell the goods back to the customer at an agreed price including some margin or profit. The customer will make payment by installments over an agreed period. A fixed rate BBA is a powerful hedging tool against interest rates (Rosly, 1999). 2. Murabahah Murabahah is a contract of sale. The Islamic Bank acts as a middle man and purchases the goods requested by the customer. The bank will later sell the goods to the customer in a sale and purchase agreement, whereby the lender re-sales to the borrower at a higher price agreed on by both parties. These are more for short term financing 3. Mudharabah According to Kettel (2006), Mudharabah is a basic principle of profit and loss, where instead of lending money at a fixed rate return, the banker forms a partnership with the borrower, thereby sharing in a ventures profit and loss. Mudharabah is an agreement between the lender and entrepreneur, whereby the lender agrees to finance the project on a profit sharing basis according to a predetermined ratio agreed by both parties concerned. If there are any losses the lender will bear all the losses. 4. Musharakah Musharakah means partnership whereby the Islamic institution provides the capital needed by the customer with the understanding that they both share the profit and loss according to a formula agreed before the business transaction is transacted. In Musharakah all partners are entitled to participate in the management of the investment but it is not compulsory. Musharakah can help in providing financing for large investments in modern economic activities 5. Al Ijarah Ijarah means meaning to give something on a rental basis. In Ijarah, the bank acquires ownership based on the promise and leases back to the client for a given period. The customer pays the rental but the ownership still remains with the bank or lender. As the ownership remains with the lessor (bank), it continues to give the service for which it was rented. Under this contract, the lessor has the right to re-negotiate the quantum of the lease payment at every agreed interval to ensure rental remains in line with the market rates (Hume, 2004). 6. Wadiah Wadiah is a trust contract and the bank provides gift (hibah) and various types of benefits to the customer. This is exactly like a normal conventional savings account. 7. Istisna Istisna allows one party buys the goods and the other party undertakes to manufacture them according to agreed specifications. Normally, Istisna is used to finance construction and manufacturing projects. 8. Salam Salam is defined as the forward purchase of specified goods with full forward payment. This contract is normally used for financing agricultural production. According to Hassan (2004), Salam based future contracts for agricultural commodities, supported by Islamic Banks, can help to overcome the agricultural financial problems Table 2.1 lists the products of conventional banking and their correspondent products in Islamic Banking. Source: Obaidullah, 2005 Financial Crisis and the Islamic Banking To be able to compete with conventional banks, Islamic banks have to offer financial products that are comparable to the ones offered by the conventional banks. This exposes the Islamic banks to similar credit, liquidity and risks driven by market instability. Despite that, Islamic banks managed to remain stable at the early phases of the crisis. That was driven by three main Factors. First, Islamic banks financing activities are strongly tied to the real economic activities than their conventional counterpart. Even though Musharakah and Mudharabah both provide better risk sharing while keeping strong link to the real sector, they are used minimally for different reasons. Most financing activities are done through Murabah and Ijarah followed by Istinsa. In the GCC and during 2007, Murabaha comprised of 65.4%, Ijarah 12.78% and Istinsa 2.83%. Both Murabaha and Ijrah transactions require the Islamic bank to know the clients purspose and use of finance as well the ownership of the asset by the bank. This help in ensuring that the funds are used for their stated purposes. On the other hand, conventional banks do not require disclosing the use of funds as long as the client is believed to creditworthy or can post suitable collateral. Second, Islamic banks avoid direct exposure to exotic and toxic financial derivative products. Since Shariah prohibits riba and gharar, the asset portfolio of Islamic banks did not include any CDOs, CMBSs, and CDSs which turned out to be highly toxic for conventional banks and amplifying factor for the crisis. These derivative products, initially used for hedging purposes, became device for highly speculative investments among conventional financial institutions. Unavailability of hedging instruments for Islamic financial institutions, which was perceived as weakness before the crisis, became a strengthening factor for them. However, exposure to other investment risks driven from equity markets, sukuk, real-estate and ownership stakes in other businesses remain a source of concern when overdone or undertaken purely for speculative gains. Third, Islamic banks in general have a larger proportion of their assets in liquid form than their conventional counterparts. This is driven by two main reasons: (1) there is no lender of last resort (LOLR) facility available to Islamic banks, and they do not have access to market liquidity in the form of the interbank market, high liquidity was maintained for risk management purpose. (2) Excess liquidity is required due to lack of interest-free short-term investment opportunities as real economic investments require some development period. As the global financial crisis became a global economic crisis, it started to affect Islamic banks in an indirect manner. The financial crisis has triggered a chain reaction whereby the slowdown in the real economies of the developed countries has started to affect economic growth and investment activities in export driven economies of the developing countries through lower trade in goods and services as well as through the declining commodity prices including that of oil. The economic downturn is not only affecting the investment and financing activities of financial institutions including those of Islamic banks, it is also reducing the funding of these banks through lower personal savings and declining corporate profits. It should be noted that most of the Islamic banking industry comprises of commercial banks whose major funding source are retail deposits, investment banking constitutes only a small portion of the industry. Islamic banks in some regions may face risk on their fina ncing and investment side of the balance sheet due to the crisis induced volatility of equity markets where these banks have large positions. Downturn in the real estate markets where these banks have large direct and indirect exposures is also another source of risk. Similarly, the changing wealth position of their high-net-worth (HNW) clients who also hold financial exposure in the hard-hit conventional financial sector of the West and therefore are now postponing any investment plans is also a factor. The relative importance of each of these factors varies by the region. For example, the banks in the GCC and particularly in the UAE are more exposed to real estate market risk, followed by risk of international equity markets. For the banks in Asia, their investments in domestic and international equity markets are a source of concern as equity markets are showing higher volatility. In some of the countries, the existing fiscal imbalance which has widened after the crisis is also a factor in the increased volatility of the markets Previous Literature The study of bank profitability is an important tool to evaluate bank operation by examining the different factors affecting bank profitability and using these factors for management planning and strategic analysis. In the last four decades, many studies have been conducted to study both bank profitability and the determinants of bank profitability either for particular country or for a panel of countries. These studies normally divide these factors into internal factors and external factors. Internal factors represent the bank-specific characteristics such as bank size, liquidity structure; liabilities†¦etc while external factors can be macroeconomic factors such as inflation and GDP growth or Country-specific regulations rules and practices. In the area of banking profitability, many studies have been conducted to investigate the profitability of conventional banks while only few were conducted in the field of Islamic banking. In this chapter, we will review these studies for conventional banking first and then will focus on studies in the Islamic banking field. Then we will cover the conceptual framework of this research. Conventional Banking Different studies have been conducted in the field of conventional banking profitability. Short (1979), Bourke (1989), Molyneux and Thornton (1992), Goddard, Molyneux, and Wilson (2004), Peters et al. (2004) are some of the researchers in the field. Short (1979) is one of the early scholars who studied the relationship between banking profit rates and concentration for sixty banks in Canada, Western Europe and Japan during the 1970s and he included independent variables including government ownership and concentration by using H index to quantify concentration. Results showed that the government ownership impact on profitability varied throughout the countries studied but expressed an overall negative relationship. He also found evidence that indicated higher concentration rates lead to higher profit rates (Short, 1979). Bourke (1989) also compared concentration to bank profitability but included other determinants. Bourke (1989) covered ninety banks in Australia, Europe, and North America between 1972 and 198 and examined different internal and external factors: internal factors such as staff expenses, capital ratio, liquidity ratio, and loans to deposit ratio; external factors such as regulation, size of economies of scale, competition, concentration, growth in market, interest rate, government ownership, and market power. His results show that increase in government ownership leads to lower profitability in banking. He also found that concentration, interest rates, and money supply are positively related to profitability along with capital and reserves of total assets as well as cash and bank deposits of total assets. Bourke adds that well capitalized banks enjoy cheaper access to sources of funds as they are less risky than less capitalized banks (Bourke, 1989). Later, Molyneux and Thornton (1992) studied the determinants of European banks profitability. The paper examined eighteen counties in Europe between 1986 and 1989. This paper replicated Bourkes (1989) work by using internal and external determinants of bank profitability. However, Molyneux and Thornton (1992) results showed that government ownership expresses a positive coefficient with return on capital (profitability) which contradicts with Bourkes findings. Other results were similar to Bourkes, showing that concentration, interest rate, and money supply were positively related to bank profitability (Molyneux and Thornton, 1992). In one of the recent papers on bank profitability on European banks, Goddard, Molyneux, and Wilson (2004) shows similar findings to the paper by Molyneux and Thornton (1992). It investigates the determinants of profitability in six European countries and it covered 665 banks between 1992 and 1998. The study used cross-sectional and dynamic panel models. The variables used in the regression analysis were ROE, the logarithmic of total assets, Off Balance Sheet (OBS) dividends, Capital to Asset Ratio (CAR). The results from both models were similar: evidence reveals that there is a positive relationship between size (total assets) and profitability. Meanwhile, OBS appears to have a positive relationship with profitability for UK but neutral or negative for other European countries. Moreover, results also state that CAR has a positive relationship with profitability. Furthermore, the paper touched on ownership type by indicating that there is high competition in banking due to the fact t hat there is foreign bank involvement in domestic banks, and that profitability is not linked to ownership (Goddard, Molyneux, and Wilson, 2004). Peters et al. (2004) studied the characteristics of banks in post-war Lebanon for the years 1993 to 2000 and compared the results to a group of banks from five other countries in the Middle East including UAE, KSA, Kuwait, Bahrain and Oman for the years 1995 through 1999. They used Return on Equity (ROE) measure profitability and leverage and they employed regression models that relate bank profitability ratios to various explanatory variables. This study tests the relationships between bank profitability and size, asset portfolio composition, off-balance sheet items, ownership by a foreign bank, and the ratio of employment to assets. The results show a strong association between economic growth and bank profitability, whether measured by ROE or ROA. They found that Lebanese banks are profitable, but not as profitable as a control group of banks from five other countries located in the Middle East. Islamic Banking In the area of Islamic Banking, Bashir (2000) assessed the performance of Islamic banks in eight Middle Eastern countries. He analyzed important bank characteristics that affect the performance of Islamic banks by controlling economic and financial structure measures. The paper studied fourteen Islamic banks from Bahrain, Egypt, Jordan, Kuwait, Qatar, Sudan, Turkey, and United Arab Emirates between 1993 and 1998. To examining profitability, the paper used Non Interest Margin (NIM), Before Tax Profit (BTP), Return on Assets (ROA), and Return on Equity (ROE) as performance indicators. There were also internal and external variables: internal variables were bank size, leverage, loans, short-term funding, overhead, and ownership; external variables included macroeconomic environment, regulation, and financial market. In general, results from the study confirm previous findings and show that Islamic banks profitability is positively related to equity and loans. Consequently, if loans and equity are high, Islamic banks should be more profitable. If leverage is high and loan to assets is also large, Islamic banks will be more profitable. The results also indicate that favorable macro-economic conditions help profitability (Bashir, 2000). Hassoune (2002) examined Islamic bank profitability in an interest rate cycle. In his paper, compared ROE and ROA Volatility for both Islamic and conventional banks in three GCC region, Kuwait, Saudi Arabia, and Qatar. He states that since Islamic banking is based on profit and loss sharing, managements have to generate sufficient returns for investors given that they are not willing accept no returns (Hassoune, 2002). Bashir and Hassan (2004) studied the determinants of Islamic banking profitability covers 43 Islamic Banks between 1994 and 2001 in 21 countries. Their figures show Islamic banks to have a better capital asset ratio compared to commercial banks which means that Islamic banks are well capitalized. Also, their paper used internal and external banks characteristics to determine profitability as well as economic measures, financial structure variables, and country variables. They used, Net-non Interest Margin (NIM), which is non interest income to the bank such as, bank fees, service charges and foreign exchange to identify profitability. Other profitability indicators adopted were Before Tax Profit divided by total assets (BTP/TA), Return on Assets (ROA), and Return on Equity (ROE). Results obtained by Bashir and Hassan (2004), were similar to the Bashir (2000) results, which found a positive relationship between capital and profitability but a negative relationship between loans and profitability. Bashir and Hassan also found total assets to have a negative relationship with profitability which amazingly means that smaller banks are more profitable. In addition, during an economic boom, banks profitability seems to improve because there are fewer nonperforming loans. Inflation, on the other hand, does not have any effect on Islamic bank profitability. Finally, results also indicate that overhead expenses for Islamic banks have a positive relation with profitability which means if expenses increase, profitability also increases (Bashir and Hassan, 2004). Alkassim (2005) examined the determinants of profitability in the banking sector of the GCC countries and found that asset have a negative impact on profitability of conventional banks but have a positive impact on profitability of Islamic banks. They also observed that positive impact on profitability for conventional but have a negative impact for Islamic banking. Liu and Hung (2006) examined the relationship between service quality and long-term profitability of Taiwans banks and found a positive link between branch number and long-term profitability and also proved that average salaries are detrimental to banks profit. Masood, Aktan and Chaudhary (2009) studied the co-integration and causal relationship between Return on Equity and Return on Assets for 12 banks in KSA for the period between 1999- 2007. For their research, the used time series model of ADF unit-root test, Johansen co-integration test, Granger causality test and graphical comparison model. They found that there are stable long run relationships between the two variables and that it is only a one-direction cause-effect relationship between ROE and ROA. The results show that ROE is a granger cause to ROA but ROA is not a granger cause to ROE that is ROE can affect ROA input but ROA does not affect the ROE in the Saudi Arabian Banking sector. Conceptual Framework Theoretical framework is a basic conceptual structure organized around a theory. It defines the kinds of variables that are going to be used in the analysis. In this research, the theoretical framework consists of seven independent variables that represent four aspects of the Bank Characteristics. Theses aspects are the Bank Size (Total Assets), Capital Structure (Equity and Tangible Equity), Liquidity (Loans and Liquid Assets) and Liabilities (Deposits and Overheads). Bank profitability is the dependent variable and two measures of bank profitability are used in this study, namely return on average equity (ROAE) and return on average assets (ROAA). In this section we develop the hypothesis to be examined in this research paper. Development of Hypotheses This paper attempts to test seven hypotheses. A hypothesis is a claim or assumption about the value of a population parameter. It consists either of a suggested explanation for a phenomenon or of a reasoned proposal suggesting a possible correlation between multiple phenomena. According to Becker (1995), hypothesis testing is the process of judging which of two contradictory statements is correct. Hypothesis 1: Profitability has a positive and significant relationship with the total assets (ASSETS). Total Assets of a company represents its valuables including both tangible assets such as equipments and properties along with its intangible assets such as goodwill and patent. For banks, total assets include loans which are the basis for bank operations either through interest or interest-free practices. Total assets is used as a tool to measure the bank size; banks with higher total assets indicate bigger banks. Molyneux and el (2004) included total assets in their study and found a positive significant relationship between total assets and profitability. Therefore, total assets are expected to have positive relation with profitability which means that bigger banks are expected to be more profitable. Total assets are converted logarithmic to be more consistent with the other ratios Hypothesis 2: Profitability has a positive and significant relationship with equity to asset ratio (EQUITY). Total equity over total assets measures banks capital structure and adequate. It indicated bank ability to withstand losses and handle risk exposure with shareholders. Hassan and Bashir (2004) examined the relationship between EQUITY and bank profitability and found positive relationship. Therefore, EQUITY is included in this stud