Sustainability and Waste Management University of Queensland

Official Summary Waste administration is indispensable in any association. Chiefs ought to have a waste administration plan set up at their individual work environments. The University of Queensland is one of the biggest and most established learning foundations in the province of Australia, delivering a great many alumni consistently. The organization likewise adds to research and approach improvement in the nation. The report centers around one fundamental grounds of the organization situated in St. Lucia. This grounds began once again 100 years prior. It covers more than 114 hectares.Advertising We will compose a custom report test on Sustainability and Waste Management: University of Queensland explicitly for you for just $16.05 $11/page Learn More The philosophy utilized in this report for the most part comprises of meetings, squander region evaluation, and waste investigation. A review was additionally led. The waste administration evaluation at the establishment demonstrated a n effective waste administration plan set up. The principle squander types delivered at this foundation incorporate paper, food particles, dangerous waste from the research facilities, and the plastics basically from the bundling materials. A private contractual worker and the neighborhood city gathering do the assortment and removal of these squanders. The general waste is land filled while the remainder of the waste is either reused or burned. At the hour of the assortment of the loss from the canisters, the receptacles are over half full, with the general waste containers being 95% full. Examination of the information acquired from this waste evaluation at the foundation is given in the report. The suggestions from the investigation of waste administration at the foundation depended on the open doors accessible. The establishment has a waste minimisation procedure, which includes the decrease of materials for land filling to cut on the ozone harming substance emanations (EPA Info rmation Bulletin, 1993). The report suggests the formation of a board of trustees at the foundation to administer the waste minimisation procedure, which ought to be going by a certified person. The greater part of the natural waste can be diminished through stock administration at the providing food division with a portion of the food materials being taken care of to creatures, for example, pigs (Panikkar, Riley Shrestha n.d). The proposed squander minimisation plan at the foundation has a course of events of five years. Foundation Description of the Facility The waste administration plan created in this paper is for the University of Queensland that is arranged in Australia. The foundation is among the most seasoned colleges in Australia, having been begun in 1909. This state funded college has a great many understudies in the numerous grounds, with the principle grounds being situated close to Brisbane city at a spot called St. Lucia (Sweet 2008). The office is credited with the arrangement of advanced education to understudies in Queensland and Australia on the loose. It has been positioned among the best performing organizations in the world.Advertising Looking for report on ecological examinations? How about we check whether we can support you! Get your first paper with 15% OFF Learn More The foundation has more than 2,000 instructing and non-training staff working everywhere throughout the grounds. Aside from the preparation of understudies, the college is likewise entrusted with innovative work of approaches in the different controls. There have been various research works from the college. It works various research offices, for example, the Heron Island explore station. The floor size of this establishment is generally enormous. No figure is accommodated the consolidated space for all its grounds. In any case, the report will concentrate on squander the board at the fundamental grounds at St. Lucia. This grounds sits on 114 hectares. The present waste administration rehearses at the grounds have been continually updated. The establishment has developed as far as the quantity of understudies being enlisted. A straightforward framework is utilized where privately owned businesses are contracted in the removal of the waste. The foundation has set out on a waste minimisation methodology. The costs used in this framework are for the most part the bills utilized in the installment of the privately owned businesses contracted to gather the loss at the St. Lucia Campus. Method of reasoning for Waste Assessment Several reasons uncover why squander appraisal at the grounds is urgent. The significant explanation behind the appraisal and advancement of the waste administration plan is to permit the establishment to consent to the territory of Queensland and the Australian national arrangements on squander the executives. The National Waste Policy of 2009 in Australia is equipped towards the decrease of the arranged waste, accordingly guaran teeing natural maintainability and giving related monetary and ecological advantages (Albu, ChiÃ¥ £u 2011; Wei, Burritt, Monroe 2011). Along these lines, the college, which is an innovator in arrangement definition and execution, is required to be at the cutting edge of the usage of this strategy. The college additionally has an arrangement of taking part in perfect and solid procedures in its activity. Ecological protection is one of its approaches. The waste appraisal and the board plan will contribute towards the improvement of a powerful technique for the establishment to diminish its squanders and costs, along these lines guaranteeing that it satisfies the hopes of the general public. The college has built up various waste administration designs throughout the years. A large portion of the plans have the objective of waste minimisation. Strategy The goal of the activity was to do a waste appraisal at the foundation in the exertion of building up a waste administration plan for St. Lucia Campus. The appraisal of waste administration at the St. Lucia Campus of Queensland University was done in different manners. A few strategies including interviews, overview, assortment of containers, and waste evaluation were utilized to guarantee that the real factors accumulated concerning how the association handles its waste were available.Advertising We will compose a custom report test on Sustainability and Waste Management: University of Queensland explicitly for you for just $16.05 $11/page Learn More Interviews were led where the administration was met on the waste administration plan set up, particularly on the expense of the techniques set up at the organization. The meetings were additionally led with the interest of different partners, for example, understudies to build up the general waste administration culture at the grounds. An overview was additionally directed, with understudies and staff at the organization being assessed as far as waste administration rehearses. This undertaking was intended to build up whether the waste minimisation and the board approaches set up at the establishment were filling in as envisioned. The subsequent stage that was followed in the waste administration appraisal was the investigation of squanders in the foundation for a time of multi week along with the monetary ramifications of the equivalent for a month (EPA Victoria 2009). The procedure of waste assortment or potentially assortment of canisters was additionally evaluated. After the examination of the waste administration framework in the organization, the depiction of the waste age process was conceivable. The age of waste at the St. Lucia Campus is a mind boggling process where all investors in the establishment are included. The organization creates a wide range of squanders, including the natural and inorganic squanders. The natural squanders at the foundation originate from the cafeterias and the reward regions in the establishment. Uncommonl y planned receptacles are set up to permit space for the assortment of these squanders. Different sorts of squanders produced at the foundation incorporate paper materials, plastics, and fertilizer from the creatures at the exploration place. In consistently, the association creates more than 5 tons of waste. A few removal courses are utilized in the association, including the contracting of trash assortment organizations and private firms that do likewise. The city committee is likewise engaged with the assortment of waste from the foundation. The primary issue experienced while completing the appraisal of the waste administration at the St. Lucia Campus of the University of Queensland is the absence of access to the kitchen zones where a progressively point by point evaluation of the natural waste expected to have been finished. There was additionally restricted chance to complete the waste evaluation, with constrained data being accessible for the appraisal. Be that as it may, th e waste appraisal was productive. In this way, the information got from this activity will be talked about underneath. Key Findings Results from the Waste Assessment From the waste appraisal practice at the St. Lucia Campus, a progression of data can be gotten. The institution’s waste can be ordered into general waste, paper squander, ICT squander, and unsafe waste. The assortment recurrence for these assortments of waste extents from every day to week after week. The fundamental contractual worker is the St. Lucia City Council (The University of Queensland, Property Facilities Division, Sustainability Office 2011).Advertising Searching for report on ecological investigations? We should check whether we can support you! Get your first paper with 15% OFF Find out More The heft of the waste gathered is reused for removal, with the general waste being arranged via land filling at the City Council’s principle squander removal focus. The general waste is first sifted through at the foundation, with different containers set up for the various kinds of squanders, for example, natural and inorganic squanders. Inorganic squanders for the most part originate from the plastics, which are principally utilized for bundling drinking water and other soda pops at the institution’s providing food regions. A rundown of the waste administration, including the sorts and assortment frequencies were gotten and given in the table underneath. Squander Stream System Contractor Collection Frequency Fee (every year) Disposal Pathway General 1 x 3.5m3 City Council Daily $48,000 Landfill Paper 2000 City Council Weekly $20,000 Recycling ICT squander 2500 University premises Monthly $15,000 Recycling

Battle of Gettysburg Essay -- essays research papers fc

The Battle of Gettysburg      The Battle of Gettysburg was the most conclusive fight for the North, and it went on for a sum of three days. It started on July 1 and finished on July 3, 1863. The Confederacy was going into all out attack mode and was starting to wander into Pennsylvania, Maryland, and Washington D.C. They experienced Union soldiers as they progressed towards Harrisburg where they intended to cut off Union flexibly lines and to take arrangements that they required. The Battle of Gettysburg turned into the bloodiest multi-day fight at any point battled in United States history. Toward the finish of the Battle of Gettysburg, the Union asserted triumph, and they would utilize this mental bit of leeway all through the remainder of the Civil War.      On the principal day of fight, the Confederate Cavalry assaulted a Union Cavalry division that the Confederates extraordinarily dwarfed. The Union Cavalry had the option to hold the Confederates off and really drive them back until the late evening. At the point when Confederate fortifications showed up, they assisted with overwhelming the Union troopers and power them to withdraw. The Union armed force at that point endeavored to pull together on Cemetery Hill where they were joined by the main part of General Meade’s Union armed force.      On July 2, the second day of battling started. The day started with Lee requesting an assault on the Union flanks in order to surround them. The Union held solid on the correct flank, yet on the left, the Confederates were a...

I Got Your Weird Right Here 100 Must-Read Strange and Unusual Novels

I Got Your Weird Right Here 100 Must-Read Strange and Unusual Novels While we at the Riot take some time off to rest and catch up on our  reading, were re-running some of our  favorite posts from the last several months. Enjoy our highlight reel, and well be back with new stuff on Monday, July  11th. This post originally ran April 11, 2016. I love strange and unusual novels, mostly because I, myself, am strange and unusual. (Okay, you got me I wrote this list just so I could quote Beetlejuice.) Seriously, though, I love weird books. So whether theres something just a little different about the story, or the book is full-on bizarre, here are 100 wonderful books I have read and highly recommend. Some of them are funny. Some of them are disturbing. Some of them are both of those things. And they are all amazing! These were just the first 100 that popped into my head. I am happy to talk about more unusual books   and to learn about them! Please tell me about your favorite unusual books in the comments! Oryx and Crake by Margaret Atwood: In the future, for starters, people will have blue butts. Bear vs. Shark by Chris Bachelder: A young boy wins an essay contest and gets to take his family to Las Vegas to see a bear wrestle a shark. Lives of the Monster Dogs by Kirsten Bakis: Like Edward Scissorhands. But with dogs. The Vaults by Toby Ball: Intrigue surrounding an archive, set in the dystopian 1930s. The Wasp Factory by Iain Banks: *insert emoji for OH GOD MY EYES here* The Incarnations by Susan Barker: The many variations of lives of two people in  Beijing. Beatlebone by Kevin Barry: So, John Lennon is on an Irish island in 1978 The Teleportation Accident by Ned Beauman: This  has my favorite ending to any book ever. In the House Upon the Dirt Between the Lake and the Woods  by Matt Bell: A man swallows his unborn fetus like you do and it whispers dark secrets to him from inside. The Manual of Detection by Jedediah Berry: Bizarre dystopian detective noir. The Illumination by Kevin Brockmeier: People begin bleeding light from their wounds. Heart of a Dog by Mikhail Bulgakov (Author), Michael Glenny (Translator): A dog implanted with the glands of a human criminal becomes a bureaucrat. The Weirdness by Jeremy Bushnell: What if Satan wasnt a bad guy? HAHAHAHAHA. But no, really. Observatory Mansions by Edward Carey: About a group of eccentric misfits living in an apartment building. Motherfucking Sharks by Brian Allen Carr: These sharks are not just limited to water, the big toothy jerks. The Vorrh by B. Catling: I cannot succinctly explain it, nor did I understand it, but I definitely loved it. The Daughters by Adrienne Celt:  A family curse predicts a daughter will steal the voice of her mother. Who Was Changed and Who Was Dead by Barbara Comyns: A quaint village begins experiencing a rash of gruesome deaths. An Exaggerated Murder by Josh Cook:  If Sherlock Holmes and Ignatius J. Reilly had a baby, that child would be Trike Augustine. Girlfriend in a Coma by Douglas Coupland: Richards pregnant comatose girlfriends reawakening may bring about the apocalypse. Being Dead by Jim Crace:  The story of a couples murder, told backwards. Like Memento, in book form. Duplex by Kathryn Davis: If you understand this book, please explain it to me. Or not. I still thought it was rad. Geek Love by Katherine Dunn: NONCONFORMISTS FTW! This book is the BEST. The Wilds by Julia Elliott: Weird Southern gothic stories that include robot legs, levitation, and bizarre spa treatments. Sudden Death  by Álvaro Enrigue (Author), Natasha Wimmer (Translator): Bizarre historical tennis. Zeroville by Steve Erickson: This has my other favorite ending to any book ever. Viper Wine  by Hermione Eyre: If David Bowie wrote historical fiction. The Blue Girl by Laurie Foos: About a blue girl, who eats moon pies full of secrets. Prodigies by  Angélica Gorodischer:  This book scratched my Muriel Spark/Barbara Comyns itches, with an extra side of the unusual. After the People Lights Have Gone Off by Stephen Graham Jones: My first takeaway from this horror story collection: Dont tattoo dead people. The Raw Shark Texts by Steven Hall: A shark made of text actually follows you through the book. Delicious Foods by James Hannaham: One of the narrators of this book is crack cocaine. The Gone-Away World by Nick Harkaway: My favorite. The hardcover jacket is velour. Its the only book I own that I clean with a lint brush. The Library at Mount Char by Scott Hawkins: This melted my brains. Its my current book obsession. Fram by Steve Himmer: Employees of a fake government agency get sent on a real mission. Sister Mine by Nalo Hopkinson: Conjoined twins, now separated, whose father is the celestial demigod of growing things. Escape from Baghdad! by Saad Hossain: Bonkers war novel featuring jinn and an ancient librarian. Mr. Splitfoot by Samantha Hunt: A religious fanatic runs an orphanage where some of his charges can channel the dead. The Rabbit Back Literature Society by Pasi Ilmari Jääskeläinen (Author), Lola M. Rogers (Translator): The mysterious disappearance and society revolving around a famous childrens book author. The Hotel New Hampshire by John Irving: SO many weird things going on here. The woman who lives in a bear costume, for starters. Half Life by Shelley Jackson: Nora looks into a secret organization that might help her get rid of her twin. Er, her conjoined twin, that is. The Ninth Life of Louis Drax by Liz Jensen: Poor Louis could be a character in the Ghaslycrumb Tinies. Pym by Mat Johnson: An English professor searches for an island described in an Edgar Allan Poe novel, bringing along bones and Little Debbie snack cakes. The Vanishers by Heidi Julavits: A woman attending a school for psychics goes in search of the truth behind her mothers death. The Vegetarian by Han Kang: A womans decision to stop eating meat has dark and violent consequences. The Legend of Pradeep Mathew  by Shehan Karunatilaka: A madcap quest to find a legendary cricket bowler. The Last Illusion by Porochista Khakpour: A boy raised in a birdcage is rescued by a behavioral analyst and befriends a man who claims he can fly. The Cheese Monkeys by Chip Kidd: Weirdness at art school. (Is that redundant?) I Crawl Through It by A.S. King: Invisible helicopters, naked men in the bushes like its no big thing, and a girl who swallowed herself. Radio Iris by Anne-Marie Kinney: The receptionist at a company doesnt actually know what the comany does. (See also: The Beautiful Bureaucrat.) You Too Can Have a Body Like Mine by Alexandra Kleeman: This is the kind of weird that might make you weep because its not too far off from being reality. Alligators of Abraham by Robert Kloss: Alligators roam the world like humans during the Civil War. (I first read this when I had a fever, then read it again to be sure I hadnt hallucinated any of it.) Archivist Wasp  by Nicole Kornher-Stace: Ghosthunters, supersoldiers, and goddesses, oh my! The Orange Eats Creeps  by Grace Krilanovich: Its like a Burroughs vampire novel that might not actually be about vampires. Big Machine by Victor LaValle: A bus porter is invited to join a group of paranormal investigators. Long Division by Kiese Laymon: Time travel in the post-Katrina deep South. Disquiet by Julia Leigh: Sometimes its really hard to let go. *shudders* Just Like Beauty by Lisa Lerner: Futuristic beauty pageants, mutant grasshoppers, and suicide cults. As She Climbed Across the Table by Jonathan Lethem: Boy meets girl. Boy gets girl. Boy loses girl to a void in space. Stranger Things Happen by Kelly Link: SHE IS THE QUEEN. Read everything she has written. Right now. Ill wait here. The Gracekeepers by Kirsty Logan: A future where the world is mostly water and people are web-footed. Three Scenarios in Which Hana Sasaki Grows a Tail  by Kelly Luce: Short stories, including one about a toaster that can predict when people are going to die. The Story of My Teeth by Valeria Luiselli (Author), Christina MacSweeney (Translator): Three guesses what the main character likes to collect. Remainder by Tom McCarthy: Have you seen  Synecdoche, New York? Its a lot like that, but in book form. The Giants House by Elizabeth McCracken: A librarian becomes involved in the life of a boy who cant stop growing. The Portable Veblen  by Elizabeth Mckenzie: Science! Romance! Squirrels! These things are not mutually exclusive. Mermaids in Paradise by Lydia Millet: Mermaids are real, and theyre being exploited for financial gain. Slade House by David Mitchell: Five different Halloween nights, five different times people shouldnt have gone in Slade House. Brave Story by Miyuki Miyabe (Author), Alexander O. Smith (Translator): A boy seeking to change his fate enters the magical world of Vision. The 13 1/2 Lives of Captain Bluebear by Walter Moers: Its like Roald Dahl had a baby with Terry Pratchett. God Help the Child by Toni Morrison: A woman begins experiencing weird changes to her body when things in her life start going wrong. The Man in My Basement by Walter Mosely: A white man pays a black man to keep him locked in a cage in his basement. Hard-Boiled Wonderland and the End of the World  by Haruki Murakami: Madness surrounding a particle accelerator, Lauren Bacall, Bob Dylan, librarians, thugs, and more. Shine Shine Shine by Lydia Netzer: A woman struggles at home while her husband is on a mission to populate the moon with robots. The Country of Ice Cream Star by Sandra Newman: In a future America, people dont live past the age of twenty. What Was Lost by Catherine OFlynn: Whats behind the unexplained images on the security camera at the mall? Lagoon  by Nnedi Okorafor: A  famous rapper, a biologist, and a rogue soldier  walk into a bar Mr. Fox by Helen Oyeyemi: A bloodthirsty author is taken to task by one of his own characters. Version Control by Dexter Palmer: I dont know if Id like the President having the ability to pop round whenever he likes. The Bees by Laline Paul: A novel set inside a beehive, starring what else? bees. The Beautiful Bureaucrat by Helen Phillips: Josephine works entering endless strings of numbers into a computer, but she has no idea what theyre for. Masters of Atlantis by Charles Portis: A crackpot religion is founded based upon the lost city of Atlantis. Waiting for Gertrude by Bill Richardson: The spirits of famous people visit a Parisian cemetery in the form of cats. Dendera by Yuya Sato (Author), Edwin Hawkes (Translator), Nathan A Collins (Translator): A group of elderly women form a utopian community. Plus bears. (Theres a lot of bears on this list.) The Brief and Frightening Reign of Phil by George Saunders: Inner Horner is a country only big enough to hold one resident at a time. Jamestown by Matthew Sharpe: A resettling of Jamestown, post-destruction of Manhattan. Cat Country by Lao She: Cat men on Mars! I repeat: Cat men on Mars! A Jello Horse by Matthew Simmons: The narrator embarks on a road trip to visit Americas bizarre museums and roadside attractions. The Unfinished World and Other Stories by Amber Sparks: Short stories, including one about two orphans who take up taxidermy to help with their grief. Some of Your Blood by Theodore Sturgeon: The life of soldier George Smith, presented in letters and documents surrounding his case. Deathless by Catherynne M. Valente: Three words: Stalinist house elves. Annihilation by Jeff VanderMeer: Expeditions investigate Area X, an unknown area that appeared over a section of the country. Zazen by Vanessa Veselka: A young woman may or may not be behind a series of anarchistic bombings. Shes not actually sure. Slapstick or Lonesome No More!  by Kurt Vonnegut: Its  about the last president of the United States. May be read as fact  soon. Paper Tigers by Damien Angelica Walters: It had me at a photo album inhabited by a predatory ghost. The Intuitionist by Colson Whitehead: Elevator operators in a parallel universe. Damnificados  by JJ Amaworo Wilson: 600 squatters take over an abandoned tower, complete with wolves and ghosts. The Family Fang by Kevin Wilson: Serious Royal Tenenbaum vibes. The Passion by Jeanette Winterson: Napoleon! Venice! More web-footed people! And a woman who is trying to retrieve her heart from a locked box. The Bear Comes Home by Rafi Zabor: The protagonist is a walking, talking, saxaphone-playing bear.

Biology Case Study Essay - 624 Words

Case Study 1 1. Johnny has seen the words Sodium Chloride before in his science class with the periodic table. 2. Johnny couldn’t find Sodium Chloride on the periodic table because Sodium Chloride is a molecule made up of two atoms: Sodium and Chloride. 3. Sodium Chloride represents two atoms that together form a molecule: NaCl. Na: Sodium and Cl: Chloride 4. An ionic bond occurs when two or more ions (an atom whose number of elections differs from its number of protons) bond together because of their opposite charge. They are drawn to each other like magnets because of their opposite charge. 5. Sodium Chloride came about because Sodium, a positively charged ion, has one electron in its outermost shell and†¦show more content†¦This is important to remember with a water molecule because the hydrogen bonds between individual molecules and are constantly breaking and then reforming. This allows the molecules to pack close together. 11. Acids are any substance that yields hydrogen ions when put in aqueous solution. In other words, the concentration of hydrogen ions goes up the the further doe the pH scale you go. Bases are any substance that accepts hydrogen ions in aqueous solution. Again, the more basic it is the lower the concentration of hydrogen ions. 12. The pH scale is a scale used to measure t he relative acidity or alkalinity of a solution. The scale ranges from 0 to 14, and figures out the concentration of hydrogen ions in a solution. The lower the pH number, the more acidic the solution is. The higher the pH number, the more basic the solution. 13. At the chemical level, Johnny would be able to tell if something was an acid or a base by the concentration of hydrogen ions in a solution. 14. H+ refers to a hydrogen ion: a lone proton that has lost its electron making it a positively charged ion. 15. Acids are H+ donators: Acids release hydrogen ions in a solution, meaning the hydrogen ions concentration goes up, thus lowering the pH. Bases are H+ acceptors: Bases accepts hydrogen ions in a solution, meaning the hydrogen ion concentration goes down and the pHShow MoreRelatedBiology Case Study1218 Words   |  5 Pagesconvenient for our sample study since heart attack disease has been found to start developing in as early a range as 20-39 years (Mozaffarian 2015). Some interesting things to note about our population sample is the changes overtime they had from 1950 to 1962. The weight change decreased about 1.4 pounds as did the serum cholesterol by 4.5 mg% and BMI by 0.2298964. Our mean blood pressure readings increased; DBP by 0.99 mmHG and SBP more drastically by 17.4 mmHG. 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I now know why so many of my students struggle with organization and time management (AR 1.8, AR 3.2, AR 3.3). The whole process makes me look at all my students differently (AR 2.5.) Makes me want to be a better teacher, counselor, parent, wife, and friend.Read MoreResearch On The Learning Of An Educational Setup Essay2437 Words   |  10 Pagesstudents (ages 9-11) and Chemistry to secondary section students (ages 13-15), I have observed a change in the students’ approach towards the study of Science. As the students progressed to higher grades, they started losing their interest in science. Applying scientific concepts in practical scenarios became a challenging process and yet, many continued to study science simply due to the pressure of choosing a career in the field of medicine or engineering. 2.0 Aim of my research As a science teacher

Society s Affect On Body Image - 1096 Words

Thanh- Thao Duong Univ 111: Williams December 2, 2015 Unit 3 Essay Society’s affect on â€Å"Body Image† â€Å"Body image† can be defined as the way someone perceives their body and assumes that’s how others perceive them. The concept of body image can be seen as a great concern, from society’s affects through the media, social and peer pressure, to health issues and the actions taken due to body image shaming. Over time, the â€Å"ideal† body image has evolved into an idea that is simply unrealistic and unattainable. The standards for beauty has never been consistent and has always had constant changes. Early 1800’s, it was ideal for both men and women to be curvy and have somewhat of a heavy weight. Being plump was a sign that you were well off†¦show more content†¦2011). Statistics remain constant across gender, age, marital status and race. This shows that everyone is concerned with body image and that it is not gender based, both men and women are affected by each other’s perspect ive of the â€Å"ideal† body. Women are expected to be skinny, busty and fit, while men are expected to be lean and hunky. Not only does the media affect the way humans perceive themselves, but also social and peer pressures. The prevalence of anorexia is almost 4% in women between the ages of 15-24 and almost 2% in women between the ages of 25-34 (Costa-i-Font 2013). It is said that the likelihood for someone to have an eating disorder is greatly affected by a woman’s peers. It is believed that the more peers a woman has, the less likely she will be anorexic. This ties to the term â€Å"popularity†; in grade school, students are constantly looking up to the â€Å"popular† girl in school, wondering why they can not be as pretty as her or have as many friends as her. Teenagers these days spend most of their time being concerned about their body weight and the way they look. However, this is prevalent because of the pressures they feel from both family and friends. Although it is not purposely inflicted, hearing criticism from the people you love the most has the greatest affect on how a teenager views themselves. 81% of 10-year olds are already afraid of being fat, this is mainly tied to social and peer pressure (Mellin et al. 1991). Seeing a fat kid is not

Society s Affect On Body Image - 1096 Words

Thanh- Thao Duong Univ 111: Williams December 2, 2015 Unit 3 Essay Society’s affect on â€Å"Body Image† â€Å"Body image† can be defined as the way someone perceives their body and assumes that’s how others perceive them. The concept of body image can be seen as a great concern, from society’s affects through the media, social and peer pressure, to health issues and the actions taken due to body image shaming. Over time, the â€Å"ideal† body image has evolved into an idea that is simply unrealistic and unattainable. The standards for beauty has never been consistent and has always had constant changes. Early 1800’s, it was ideal for both men and women to be curvy and have somewhat of a heavy weight. Being plump was a sign that you were well off†¦show more content†¦2011). Statistics remain constant across gender, age, marital status and race. This shows that everyone is concerned with body image and that it is not gender based, both men and women are affected by each other’s perspect ive of the â€Å"ideal† body. Women are expected to be skinny, busty and fit, while men are expected to be lean and hunky. Not only does the media affect the way humans perceive themselves, but also social and peer pressures. The prevalence of anorexia is almost 4% in women between the ages of 15-24 and almost 2% in women between the ages of 25-34 (Costa-i-Font 2013). It is said that the likelihood for someone to have an eating disorder is greatly affected by a woman’s peers. It is believed that the more peers a woman has, the less likely she will be anorexic. This ties to the term â€Å"popularity†; in grade school, students are constantly looking up to the â€Å"popular† girl in school, wondering why they can not be as pretty as her or have as many friends as her. Teenagers these days spend most of their time being concerned about their body weight and the way they look. However, this is prevalent because of the pressures they feel from both family and friends. Although it is not purposely inflicted, hearing criticism from the people you love the most has the greatest affect on how a teenager views themselves. 81% of 10-year olds are already afraid of being fat, this is mainly tied to social and peer pressure (Mellin et al. 1991). Seeing a fat kid is not

Society s Affect On Body Image - 1096 Words

Thanh- Thao Duong Univ 111: Williams December 2, 2015 Unit 3 Essay Society’s affect on â€Å"Body Image† â€Å"Body image† can be defined as the way someone perceives their body and assumes that’s how others perceive them. The concept of body image can be seen as a great concern, from society’s affects through the media, social and peer pressure, to health issues and the actions taken due to body image shaming. Over time, the â€Å"ideal† body image has evolved into an idea that is simply unrealistic and unattainable. The standards for beauty has never been consistent and has always had constant changes. Early 1800’s, it was ideal for both men and women to be curvy and have somewhat of a heavy weight. Being plump was a sign that you were well off†¦show more content†¦2011). Statistics remain constant across gender, age, marital status and race. This shows that everyone is concerned with body image and that it is not gender based, both men and women are affected by each other’s perspect ive of the â€Å"ideal† body. Women are expected to be skinny, busty and fit, while men are expected to be lean and hunky. Not only does the media affect the way humans perceive themselves, but also social and peer pressures. The prevalence of anorexia is almost 4% in women between the ages of 15-24 and almost 2% in women between the ages of 25-34 (Costa-i-Font 2013). It is said that the likelihood for someone to have an eating disorder is greatly affected by a woman’s peers. It is believed that the more peers a woman has, the less likely she will be anorexic. This ties to the term â€Å"popularity†; in grade school, students are constantly looking up to the â€Å"popular† girl in school, wondering why they can not be as pretty as her or have as many friends as her. Teenagers these days spend most of their time being concerned about their body weight and the way they look. However, this is prevalent because of the pressures they feel from both family and friends. Although it is not purposely inflicted, hearing criticism from the people you love the most has the greatest affect on how a teenager views themselves. 81% of 10-year olds are already afraid of being fat, this is mainly tied to social and peer pressure (Mellin et al. 1991). Seeing a fat kid is not

Frantz Fanon Free Essays

Theoretical and postcolonial pioneer activist, who wrote in 1960 in the context of the French occupation of Algeria, Frantz Fanon through his seminal work, The Damned of the Earth (1961) and the black skin, white masks (1967) analyzed the effects of colonialism both on the colonizer and on the colonized. Fanon argued that the native develops a sense of â€Å"self† as defined by the â€Å"colonial master† through representation and discourse, while the colonizer develops a sense of superiority. Thus, Fanon developed a psychoanalytic theory of postcolonialism in suggesting that â€Å"I† Europe develops their relationship and encounter with the â€Å"other†. We will write a custom essay sample on Frantz Fanon or any similar topic only for you Order Now In an attempt to tackle the psychological failure, the native tries to be as white as possible, adopting the values, religion, language and Western white practices and rejecting his own culture. Fanon calls this phenomenon by placing white masks on the black skin, which translates into a duality and experiences a schizophrenic atmosphere. Furthermore, the sense of inadequacy and insecurity in the psyche of results colonized in violence, which is a form of self-affirmation. Fanon argued that the sense of â€Å"inadequacy and inferiority in the colonized psyche translates into violence, which according to the natives is a form of self-affirmation†. This violence even explodes against its natives, when the native realizes that he can not really be â€Å"white†. Thus, tribal wars, for Fanon, are an example of this violence, generated through the colonial system, where the natives face. , tormented by the inability to rebel against the colonial master. In The Wretched of the Earth, Fanon proposed the idea of a national literature and a national culture, recognizing the importance of cultural nationalism, which leads to national consciousness. He tried to support a wider pan-African cause, because blacks had to create their stories and rewrite their stories. Fanon believed that such a national culture should draw on African cultural myths and practices. He made the three phases in which a national culture: native under the influence of the culture of the colonizer, tries to emulate and assimilate discarding his own culture (what Homi K. Bhabha later called mimicry). recognizes native and discovering the great disparity that can never be too much is too white or white for the colonizer to treat him from equal peers, and returns to study his own culture, with a romantic and festive way. However, in the third phase, the native is truly anti-colonial, accompanied by a critical analysis of his own culture. However, Fanon also foresaw the other side of cultural nationalism, which can lead to xenophobia and intolerance. He realized that national culture had limited value, to help define the native culture against the overwhelming assault of the colonial. Another limitation of the cultural nationalism that Fanon underlined is that he would not guarantee the correction of the working classes and the oppressed. Therefore, although its concept of cultural nationalism was representative, it was also materialistic and economic. He also proposed a dynamic culture that must be critically evaluated and respond to changing socio-historical circumstances. Another prophetic argument was that after political independence, the power struggle between the colonizer and the native resurgence in the road between the native elite and the rest of the post-colonial society and oppression, exploitation and corruption continue, as is reflected in the beauty of Ayi Kwei Armah is not yet born. How to cite Frantz Fanon, Papers

On Being Black and Middle Class by Shelley Steele Essay Example

On Being Black and Middle Class by Shelley Steele Paper Shelby Steeles On Being Black and Middle Class, discusses the concept of victimization. Steele believes that the use of victimization is the greatest encumbrance for African Americans. In Steeles perception, white Americans see blacks as victims to ease their guilty conscience, while African Americans attempt to turn their status as victims into a kind of currency that will purchase nothing of authentic or continual value. Hence, Steele firms that blacks must seize buying into this zero sum game by adopting a culture of excellence and achievement without relying on set asides and entitlements. By victimization, Steele is referring to the fact that humanity transforms their historical experiences of injustice into the centerpiece of cultural and group identity, for example blacks today are freer than at any other point in history, yet the identity is more acquainted with victimization than ever before. Steeles usage of the term affects his argument through his thoughts of why black middle-class Americans are unintentionally expected to celebrate the black underclass as the purest representation of African American identity. Steele presumes that the mistake that grew out of Americas desire to fix the racial problem was that it inadvertently made victimization itself a kind of currency of power. Victimization now brings certain benefits, preferences, and entitlements. We will write a custom essay sample on On Being Black and Middle Class by Shelley Steele specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on On Being Black and Middle Class by Shelley Steele specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on On Being Black and Middle Class by Shelley Steele specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Steele claims that by rewarding victimization, the human population encourages blacks to think of themselves as victims. Other terms that could be used to counter Steeles argument would be every group thats seeking atonement from society Hispanics, Asians, African Americans, even women. The victim mindset causes these groups fall farther and farther behind in American mainstream. The tragedy of victimization clutches much power.

Argumentative Capital Punishme essays

Argumentative Capital Punishme essays A pregnant wife was brutally beaten, raped, and left for dead. The unborn baby did not survive the trauma. The wife recovered after a long coma, at which time she identified her husband as the attacker, not withstanding his claim that he was out getting some fast food for them. The police closed the investigation despite the fact that the circumstances of the attack were similar to the activities of a serial killer who was active in the area. The husband was convicted and received a fifteen-years-to-life sentence for second-degree murder for the death of the unborn child. After serving16 years, as a result of police reviewing unsolved cases, DNA collaboration, and the confession of the actual serial murderer, the husband was exonerated. Everyone involved in the prosecution process (wife, police, prosecutor) sincerely believed they had the guilty party. But, they were wrong! Examples of police officers prematurely closing cases (noted above) or designing identification procedures in such a way as to prejudice decisions of the witnesses. In other cases prosecutors fail to provide defense attorneys with crucial information or resist the implications of scientific evidence gained after trial that could lead to the reversal of a conviction. There are convictions resulting from biased or incompetent forensic science. In the area of defense attorneys, they are under funded, overworked, or lazy. Such attorneys miss facts, do not investigate thoroughly, and often are hampered by limited resources. Last week the 100th death-row inmate found to be wrongfully convicted since capital punishment was restored in 1977 was freed from an Arizona prison. Most wrongfully accused are exonerated, as a result of emerging DNA technology, there was biological evidence that could be used to prove a wrongful conviction. But, what about the tens of thousands of cases where bio logical evidence is not a factor? The same system was active in investigating,...

How to Prepare for the CCNA Exam

How to Prepare for the CCNA Exam Cited consistently by recruiters and hiring managers as one of the most sought-after certifications in the IT industry, the CCNA is one of the most valuable certifications you can have on your resume. Moreover, it’s required for most higher-level Cisco certifications like the CCNP and CCDP (and, by extension, the CCIE). Earning the CCNA demonstrates that you have the ability to configure and support a range of Cisco network devices, along with a strong general knowledge of networking, network security, and wireless networking- all of which are required to support the modern enterprise network. But before you can become a CCNA, you need to pass Cisco exam 640-802 (or, alternately, exams 640-822 and 640-816 together), which is required in order to earn the certification. The CCNA exam is challenging, and passing it definitely requires a lot of work and effort. But with the right focus and preparation, passing the CCNA exam is an achievable goal. To get you started, here are some tips to use in preparing for your CCNA examination. Set a Course of Study The first order of business should be to set the direction for your individual study. Cisco offers a syllabus for the CCNA certification, with a list of topics that are covered. Review this list, print it out and post it, and use it as your guide in crafting your personal course of study. Remember- if its not on the syllabus, its not on the exam, so limit your studies to the topics that Cisco highlights. Identify Your Weaknesses A good next step is to identify those areas where you’re weakest (hint: try a practice exam to help identify those areas)  and make them the focus of your study and practice. Highlight those areas, and set a specific goal towards gaining a good understanding of each. Don’t necessarily neglect your areas of strength completely (you don’t want to forget what you’ve already learned!), but by turning your weaknesses into strengths you can dramatically increase your chances of passing the CCNA exam. Make Time for Study The CCNA isn’t an easy exam to pass, and it covers a lot of ground. And, like any technical discipline, if you don’t work at it on a consistent basis, your knowledge and skills will fade. Set aside a consistent, regular time for study, and make sure that you keep to it. Granted, it can be hard to keep this time blocked out, especially with all of the daily responsibilities and distractions that we all deal with. But the key to passing the CCNA is frequent and consistent study and practice, so it’s critical that you set this time aside, limit your distractions, and stick to the task at hand. Focus on the Details It’s not enough to know the theory behind the concepts presented in the CCNA curriculum. To successfully pass the CCNA exam, you need to how to complete tasks and understand how things get done in the world of Cisco. That’s an important point  because general networking concepts and the way Cisco does things are not always the same- so it’s important to understand the details and specific methods and procedures for implementing different networking technologies, within the Cisco environment. Get Access to Gear This point cant be stressed enough. A big portion of the CCNA exam consists of completing tasks on simulated routers and switches, just as you’ll do them in real life. That’s why it’s critical that you get practice time (preferably a lot of it) on Cisco equipment  so that you can implement what you study within the actual Cisco IOS environment. You can buy or rent pre-configured sets of actual Cisco routers and switches that contain all of the equipment you’ll need to practice for the exam, and these sets are not as expensive as you might think. Also, there are also some excellent simulators out there, that let you configure virtual routers and switches from your personal computer. Take a look at Packet Tracer, which is an excellent tool available from the Cisco Academy, and Graphical Network Simulator 3 (GNS3), which is a free open-source tool that provides a simulated Cisco IOS environment (you can also use it to simulate the Juniper JunOS platform as well). Practice All of the Topics on the Exam, Firsthand Once your practice environment is up and running, make sure you take full advantage of it and practice implementing every protocol and configuration possible, so that you can see how everything works on the actual gear. Remember, things in real life don’t always work the same as they do on paper, and just because a book or guide tells you that a given configuration will produce a given result, nothing beats seeing it for yourself, especially on those (hopefully rare) occasions when the books get it wrong. The key to passing the CCNA exam is preparation  and lots of it. To pass the test, you’ll need to understand networking theory, facts, and practice, and be able to readily utilize the Cisco IOS interface, including specific commands and syntax. But, if you take the time to truly learn the material and get to know your way around Cisco routers and switches beforehand, you should find the test relatively easy to pass.

Effective Teaching and Learning in the Primary School Essay

Effective Teaching and Learning in the Primary School - Essay Example Promoting the learning and achievement of pupils is a main aim of school education (TLRP, 2006). Teacher’s commitment to education and the insight reflection regarding teaching and learning process enables him to see the complexity involved in the process and only then he is able to discover the hurdles which learners face during the process. Readiness for implementation of different strategies for individuals and persistent research to overcome these bottle necks in the learning environment; increases the capacity of children to contribute in the contemporary society. A school’s curriculum consists of content which facilitates its students to learn and experience at a quality level. National curriculum not only provides with the same objectives to be achieved throughout the country, keeping in mind the age level; but also provides a platform where schools can produce their own curriculum according to need basis. The concepts to be learned are planned in such a way that they are integrated with social and moral values. Children learn civility and manners in this way as this is considered as a part of hidden curriculum. The purpose is clear for all to develop learning skills and enrich our children in such a way that they become a useful and constructive member of the future. Every child has a different learning style an effective teacher learns through experience and research that one strategy of learning might not fit for all. The groups of individuals in a class have learning potential but all of them possess different styles of acquiring them. Thus holistic development of a child does not only depend on contents of his curriculum but on the effectively applied strategies of an effective teacher. All over the world teachers, teach children writing styles through several ways. Children need different characteristics and styles from teacher to learn the specific trait. Learning how to write is a difficult process for children, where educators are required to link several skills together which matches the child’s comprehension and learning style. The problem becomes quite clear describing the characteristics of an effective teacher, who is able to foresee the hurdles in the process and therefore is ready with a plan to overcome these challenges. Learning how to write can be a distressing problem in a child’s personal and educational life. If a child is unable to develop certain basic skills during his schooling, later on further stages he will be unable to compile his thoughts into writing and will be unable to express what he learnt. Different subjects require students to show their learning through writing and even in exams they are supposed to write what they learnt in the session. Children who face such problems feel difficult to cope up and thus are discouraged easily. The process of writing itself becomes a challenge providing minimum help. This problem is interlinked with several other areas of learning w hich in turns slows down the holistic development of a child. Children, who are inattentive and impulsive, face difficulty to start with writing tasks, are easily distracted, get bored or tired quickly, show lack of interest in writing, write in improper font, make careless spelling mistakes and are less interested in organizing writing tasks. Children, who face spatial order problem have poor sense of line on paper, uneven space between letters and

Entering in to a Credit Agreement Essay Example | Topics and Well Written Essays - 1000 words

Entering in to a Credit Agreement - Essay Example Rest of the amount is paid in small monthly installments. In his scheme of thing, the good sold belongs to the shop until and unless complete money i.e. last installment is not paid to the shop. This was used to be called Hire Purchase agreements but is now called an Installment Sales Agreement. Before entering an agreement for a credit, a person must be fully aware of terms and conditions of the credit. There are certain requirements that need to be complied with while entering an agreement to protect consumer's interest. The Consumer Credit Act 1974 and subsequent amendments lay down certain well defined requirements for a consumer's protection. If these requirements are not met the agreements will be considered as not enforceable without a court order. Various Consumer Credit Acts provide number of rights to the consumers to settle the agreement at any time by giving notice in writing and paying off the amounts owed under the Agreement. A person entering consumer credit or consumer hire agreement should carefully go through the agreement forms and content of document accompanying the agreement. Section 60(1) of CCA requires a credit agreement document to aware debtor or hirer clearly about following: Consumer credit or consumer hire agreement document in the prescribed form, containing all the prescribed terms of the agreement and conforming to regulations under section 60(1), is not signed in the prescribed manner by the debtor or hirer and by or on behalf of the creditor or owner The document does not include all the terms of the agreement, other than implied terms The document is, when presented or sent to the debtor or hirer for signature, in such a state that all its terms are readily legible. Contents of a Credit Agreement According to Credit Agreement Act, debtor or buyer and hirer or seller both arties must sign a written agreement including all terms and conditions. A credit agreement document must include following details: Names and addresses of both the buyer and seller A complete and clear description of the goods The cash price and the other charges (finance charges, insurance and so on) that make up the total price the buyer must pay The deposit that must be paid. No credit agreement is legal until the deposit is paid. The amount of each installment, including the last installment, and the day of the week or month by which it must be paid. All other terms and riders like who will the owner of goods until all the installments or full cost of the good is paid, at what conditions the purchaser can make prepayments or what will be the result if full installments are not paid. Terms and conditions if a seller has sold defective goods or it break down without any fault from purchaser side. Canceling an Agreement There are cases when a

Comparing Atkins and Balance Energy Bars :: Health Nutrition Diet Exercise Essays

Comparing Atkins and Balance Energy Bars   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Many are fascinated by the various diets in society; people want to lose weight by finding a reliable method that will ensure results. Two common diets include the Atkins Diet and the Zone Diet. Both of these have energy bars that contain the nutrients need to meet the diets specific requirements. In the article â€Å"Glycemic and Insulinemic responses to energy bars of differing macronutrient composition in healthy adults,† by Steven Hetzler and Veonsoo Kim, a study was conducted that compared the different energy bars. The study looked at equal proportions of these bars to see their effects on glycemic and insulinemic levels. This paper will be focusing on the differences between the Atkins and Balance Energy Bars and the effect they have on glycemic and insulin.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  The Atkins Diet contains a low amount of carbohydrates, whereas the Zone Diet has the components of a 40% carbohydrate, 30% protein, and 30% fat breakdown. The energy bars associated with these diet influences the glycemic and insulin levels in the body. By having a reduction of glycemic and insulin levels in the body affects a diet. By having low glucose levels this will ultimately lead to weight loss. This happens either through the removal of carbohydrates or by substituting low glycemic index carbohydrates for higher ones. In doing this the higher level of insulin will be reduced, for example high blood cholesterol levels will go down.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  To test the insulin and glycemic levels the energy bars contain the study had 20 healthy adult participants. They were split into groups receiving 1 of 5 test meals; 1 being low carbohydrates, 2) moderate carbohydrates, 3) high carbohydrates, 4) white bread, and 5) chicken breast. Chicken breast was the negative control since it contains no carbohydrates, whereas white bread was the positive control. Test meals 1) with the low carbohydrates, include the Atkins Energy Bar, and test meal 2) includes the Balance Energy Bar.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  In order to see the levels of the glucose and insulin after consuming the bars blood samples were taken and analyzed. In this experiment the Atkins energy bar produced the lowest glucose results.

Bank6003 Notes

BANK6003 Final Exam Notes TOPIC 4A: Credit Risk – Estimating Default Probabilities Overview * Theory of credit risk less developed than VaR based models of market risk. * Much less amenable to precise measurement than market risk – default probabilities are much more difficult to measure than dispersion of market movements. * Measurement on individual loans is important to FI for pricing and setting limits on credit risk exposure. Default Risk Models 1. Qualitative Models * Assembling relevant information from private and external sources to make a judgement on the probability of default. Borrower specific factors (idiosyncratic or specific to individual borrower) include: reputation, leverage, volatility of earnings, covenants and collateral. * Market-specific factors (systematic factors that impact all borrowers include): business cycle and interest rate levels. * FI manager weighs these factors to come to an overall credit decision. * Subjective 2. Credit Scoring Mod els * Quantitative models that use data on observed borrower characteristics to calculate a score that represents borrower’s probability of default or sort borrowers into different default risk categories.Linear Probability Models (LPMs) * Econometric model to explain repayment experience on past/old loans. * Regression model with a â€Å"dummy† dependent variable Z; Z = 1 default and Z=0 no default. * Weakness: no guarantee that the estimated default probabilities will always lie between 0 and 1 (theoretical flaw) Logit and Probit Models * Developed to overcome weakness of LPM. * Explicitly restrict the estimated range of default probabilities to lie between 0 and 1. * Logit: assumes probability of default to be logistically distributed. Probit: assumes probability of default has a cumulative normal distribution function. Linear Discriminant Analysis * Derived from statistical technique called multivariate analysis. * Divides borrowers into high or low default risk cl asses. * Altman’s LDM = most famous model developed in the late 1960s. Z < 1. 8 (critical value), there is a high chance of default. * Weaknesses * Only considers two extreme cases (default/no default). * Weights need not be stationary over time. 3. New Credit Risk Evaluation Models Newer models have been developed – use financial theory and financial market data to make inferences about default probabilities. * Most relevant for evaluating loans to larger corporate borrowers. * Area of very active continuing research by FIs. Credit Ratings * Ratings change relatively infrequently – objective of ratings stability. * Only chance when there is reason to believe that a long-term change in the company’s creditworthiness has taken place. * S&P: AAA, AA, A, BBB, BB, B and CCC * Moody’s: Aaa, Aa, A, Baa, Ba, B and Caa Bonds with ratings of BBB and above are considered to be â€Å"investment grade† Estimating Default Probabilities 1. Historical Data * Provided by rating agencies e. g. cumulative average default rates * If a company starts with a: * Good credit rating, default probabilities tend to increase with time. * Poor credit rating, default probabilities tend to decrease with time. * Default Intensity vs Unconditional Default Probability * Default intensity or hazard rate is the probability of default conditional on no earlier default. * Unconditional default probability is the probability of default as seen at time zero. Default intensities and unconditional default probabilities for a Caa rated company in the third year * Unconditional default probability = Caa defaulting during the 3rd year = 39. 709 – 30. 204 = 9. 505% * Probability that Caa will survive until the end of year 2 = 100 – 30. 204 = 69. 796%. * Probability that Caa will default in 3rd year conditional on no earlier default = 0. 09505/0. 69796 = 13. 62% Recovery Rate * Usually defined as the price of the bond 30 days after default as a perce nt of its face value. * Recovery rate % = 1 – LGD% * Ranking of bonds * Senior Secured * Senior Unsecured Senior Subordinated * Subordinated * Junior Subordinated Credit Default Swaps * Instrument that is very useful for estimating default probabilities is a CDS. * Buyer of the insurance obtains the right to sell bonds issued by the company for their face value when a credit event occurs and the seller of the insurance agrees to buy the bonds for their face value when a credit event occurs. * The total value of the bonds that can be sold is known as the CDS’ notional principal. * Total amount paid per year, as a percent of the notional principal, to buy protection is known as the CDS spread. Buyer of the instrument acquires protection from the seller against a default by a particular company or country (the reference entity) * Example: buyer pays a premium of 90bps per year for $100m of 5-year protection against company X. * Premium is known as the credit default sprea d. It is paid for the life of contract or until default. * If there is a default, the buyer has the right to sell bonds with a face value of $100m issued by company X for $100m. * Payments are usually made quarterly in arrears * In the event of default, there is a final accrual payment by the buyer * Attractions of the CDS market Allows credit risks to be traded in the same way as market risks * Can be used to transfer credit risks to a third party * Can be used to diversify credit risk Credit Indices * Developed to track credit default swap spreads. * Two important standard portfolios are: * CDX NA IG, portfolio of 125 investment grade companies in North America * iTraxx Europe, portfolio of 125 investment grade companies in Europe * Updated on March 20 and September 20 each year. * Example * 5 year CDX NA IG index is bid 165bp, offer 166bp. Quotes mean that a trader can buy CDS protection on all 125 companies in the index for 166 basis points per company. * Suppose an investor wan ts $800,000 of protection on each company. * The total cost is 0. 0166 x 800,000 x 125 = $1,660,000. * When a company defaults, the investor receives the usual CDS payoff and the annual payment is reduced by 1,660,000/125 = $13,280. * Index is the average of the CDS spreads on the companies in the underlying portfolio. Use of Fixed Coupons * Increasingly CDS and CDS indices trade like bonds so that the periodic protection payments remain fixed. A coupon and a recovery rate is specified. * Quoted spread > coupon, buyer of protection makes an initial payment. * Quoted spread < coupon, seller of protection makes an initial payment. Credit Spreads * Extra rate of interest required by investors for bearing a particular credit risk. CDS Spreads and Bond Yields * CDS can be used to hedge a position in a corporate bond. * Example: investor buys a 5-year corporate bond yielding 7% per year for its face value and at the same time enters into a 5-year CDS to buy protection against the issuer o f the bond defaulting. CDS spread is 2% p. . Effect of the CDS is to convert the corporate bond to a risk-free bond. If the bond issuer does not default, the investor earns 5% per year. If the bond issuer defaults, the investor exchanges the bond for its face value and this can be invested at the risk-free rate for the remainder of the five years. The Risk-Free Rate * The risk-free rate used by bond traders when quoting credit spreads is the Treasury rate. * Traditionally used LIBOR/swap rate * Normal market conditions: risk free rate is 10bp less than the LIBOR/swap * Stressed conditions, the gap is much higher Asset Swaps Provide a direct estimate of the excess of a bond yield over the LIBOR/swap rate. * Example: asset swap spread for a particular bond is quoted as 150 basis points. 3 possible situations: 1. Bond sells for its par value of 100. Company A pays the coupon and Company B pays LIBOR plus 150bp. 2. Bond sells below par, say 95. Company A pays $5 per $100 of principal at the outset. After that, Company A pays the coupon and Company B pays LIBOR plus 150bp. 3. Bond sells above par, say 108. Company B pays $8 per $100 of principal at the outset. After that, Company A pays the coupon and Company B pays LIBOR plus 150bp. Therefore, the present value of the asset swap spread is the present value of the cost of default. CDS-Bond Basis * CDS-Bond Basis = CDS spread minus the bond yield spread * Bond yield spread is usually calculated as the asset swap spread * Should be close to zero, but there are a number of reasons why it deviates: 1. Bond may sell for a price significantly different from par (above par = positive basis, below par = negative basis) 2. There is counterparty risk in a CDS (negative direction) 3. There is a cheapest-to-deliver bond option in a CDS (positive direction) 4.Payoff in a CDS does not include accrued interest on the bond that is delivered (negative direction) 5. Restructuring clause in a CDS contract may lead to a payoff when th ere is no default (positive direction) 6. LIBOR is greater than the risk-free rate assumed (positive direction) Estimating Default Probabilities from Credit Spreads * Average hazard rate between time zero and time t * s(t) = credit spread, t = maturity, R = recovery rate * s = 240bps, R = 0. 40, hazard rate = 0. 04 = 4% Real World vs Risk-Neutral Default Probabilities * Real world = backed out of historical data Risk-neutral = backed out of bond prices or credit default swap spreads * Produce very different results. Why? * Corporate bonds are relatively illiquid * Subjective default probabilities of bond traders may be much higher than the estimates from Moody’s historical data * Bonds do not default independently of each other. This leads to systematic risk that cannot be diversified away. * Bond returns are highly skewed with limited upside. The non-systematic risk is difficult to diversify away and may be priced by the market. * Use real world for calculating credit VaR an d scenario analysis. Use risk-neutral for valuing for credit derivatives and PV of cost of default Option Models * Based on the idea that equity prices can provide more up-to-date information for estimating default probabilities. * Employ option pricing methods e. g. KMV. * Used by many of the largest banks to monitor credit risk. Merton’s Model * 1974 – company’s equity is an option on the assets of the company. * Equity value at time T as max(VT – D, 0) * VT is value of the firm * D is the debt repayment required * Option pricing model enables value of a firm’s equity today to be related to the value of its assets today and the volatility of its assets. Read also Recording General Fund Operating Budget and Operating TransactionsVolatilities * Equation together with the option pricing relationship enables value and volatility of assets to be determined from value and volatility of equity. Example * Company equity = $3m * Volatility of equity = 80% * Risk-free rate is 5% * Debt = $10m * Time to debt maturity = 1 year * Value of assets = $12. 40m * Volatility of assets = 21. 23% * Probability of default is 12. 7% * Market value of debt = $9. 40m * PV of payment is 9. 51 * Expected loss 1. 2% * Recovery rate 91% Use of Merton’s Model to estimate real-world default probability (e. g. Moody’s KMV) * Choose time horizon Calculate cumulative obligations to time horizon (D) * Use Merton’s model to calculate a theoretical probability of default * Use historical data to develop a one-to-one mapping of theoretical probability into real-world probability of default. * Distance to default TOPIC 4B: Credit Value at Risk Backgr ound * Credit risk is the risk of loss over a certain time period that will not be exceeded with a certain confidence level. * Calculate credit risk to determine both regulatory capital and economic capital. * Time horizon for credit risk VaR is often longer than that for market risk. Market risk usually one-day time horizon and then scaled up to 10 days for the calculation of regulatory capital. * Credit risk VaR, for instruments that are not held for trading, is usually calculated with a one-year time horizon/ * Historical simulation is the main tool used to calculate market risk VaR, but a more elaborate model is usually necessary to calculate credit risk VaR. * Key aspect is credit correlation. Defaults (or downgrades or credit spread changes) for different companies do not happen independently of each other. * Credit correlation increases risks for a financial institution with a portfolio of credit exposures.Introduction * Internal economic capital allocations against credit ri sk are based on bank’s estimate of their portfolio’s probability density function of credit losses. * Probability of credit losses exceeding some level, say X, is equal to the shaded area under the PDF. * A risky portfolio is one whose PDF has a relatively long, fat tail i. e. where there is a significant likelihood that actual losses will be substantially larger than expected losses. * Target insolvency rate = shaded area under PDF to right of X * Allocated economic capital = X – expected credit losses Expected vs Unexpected Credit Loss Expected = amount of credit loss expected on credit portfolio over the chosen time horizon * Unexpected = amount by which actual credit losses exceed expected credit loss. Economic Capital Allocation * Economic capital = estimated capital required to support credit risk exposure. * Process is similar to VaR methods used for allocation of capital for market risk. * Probability of unexpected credit loss exhausting economic capital is less than the bank’s target insolvency rate. * Target insolvency rate usually consistent with desired credit rating. * â€Å"AA† rating implies a 0. 3% chance of default. Need enough economic capital to be 99. 97% certain that credit losses will not cause insolvency. * Based on two inputs: 1. Bank’s target insolvency rate 2. Bank’s estimated PDF for portfolio credit losses * Two banks with identical portfolios could have very different economic capital for credit risk, owing to: 1. Differences in attitudes to risk taking (reflected in target insolvency rates) 2. Differences in methods of estimating PDFs (reflected in credit risk models) Measuring Credit Losses * Credit loss = current value –future value at the end of some time horizon. Precise definition of current/future values contingent on specific credit loss paradigm. * Current generation of credit risk models employ either of two conceptual paradigms: 1. Default-Mode (DM) Paradigm * Most common. * Credit loss arises only if default occurs within the time horizon. * â€Å"Two-state† model – only two outcomes, default and non-default. * If borrower defaults, credit loss = bank’s credit exposure – present value of future net recoveries (cash payments less workout expenses). * Current values are known but future values are uncertain. Estimate joint probability distribution with respect to 3 types of random variables: 1. Associated credit exposure 2. Indicator denoting whether facility defaults during planning horizon 3. In the event of default, the loss given default (LGD). Unexpected losses approach: * Assumption that PDF is well-approximated by mean and standard deviation. * Set capital at some multiple of estimated standard deviation of losses. * Requires estimates of expected and unexpected credit loss from default. * Expected loss (? ) depends on 3 key components: 1. LGD = loss given default, expressed as a decimal . PD = probability of default 3. EAD = expect credit exposure at default. * Standard deviation of portfolio credit losses * i = stand-alone standard deviation of credit losses from ith facility; * i = correlation between credit losses from ith facility and those on the overall portfolio; 2. Mark-to-Market (MTM) Paradigm * Credit loss can arise in response to decline in credit risk quality. * â€Å"Multi-state† model: default is only one of several possible credit ratings a loan could ‘migrate’ to over the horizon. * Credit portfolio marked to market at the beginning and end of planning horizon. Likelihood of a customer migrating from its current risk rating to any other category within the planning horizon is typically expressed in terms of a rating transition matrix. Row = current rating Column = prob of migrating to another risk grade * Complex estimation – need to estimate credit risk migrations at end of horizon as well as future credit spreads (risk-premium associated with end-of-period credit rating). * Two approaches: 1. Discounted contractual cash flow (DCCF) approach 2. Risk-neutral valuation (RNV) approach: an option valuation framework. In each methodology, a loan’s value is constructed as a discounted PV of its future cash flows. * Approaches differ mainly in how discount factors and yield spreads are estimated or calculated. TOPIC 5: OPERATIONAL RISK Overview * Definition: the risk of loss resulting from inadequate of failed internal processes, people and systems or from external events. * Harder to quantify and manage operational risk than credit or market risk. * FIs make a conscious decision to take a certain amount of credit and market risk but operational risk is a necessary part of doing business. Operational risk has become a more significant issue as a result of: * Increased use of highly automated technology and sophisticated systems * Growth of e-commerce * New wave of M&A * Increased risk mitigation techniques that may produ ce other risks * Increased prevalence of outsourcing * Over 100 operational loss events exceeding USD 100m since the end of the 1980s: * Internal fraud * External fraud * Employment practices and workplace safety * Clients, products and business practices * Damage to physical assets * Business disruption and system failures Execution, delivery and process management Regulatory Capital for Operational Risk * Three methods which represent a continuum of approaches characterised by increasing sophistication and risk sensitivity: 1. Basic Indicator Approach (15% of gross income) 2. Standardised Approach (different % for each business line) 3. Advanced Measurement Approach 1. Basic Indicator Approach * KBIA=GI ? ? GI = average annual gross income (net interest income + non-interest income) ? = 15% 2. Standardised Approach Bank activities divided into 8 business lines.Capital charge for each line is calculated by multiplying its gross income by the denoted beta. Total capital charge: KTSA = (GI1-8 ? ?1-8) To qualify for use of this approach, a bank must satisfy, at a minimum: – Its board of directors and senior management, as appropriate, are actively involved in the oversight of the operational risk management framework – It has an operational risk management system that is conceptually sound and implemented with integrity. – It has sufficient resources in the use of the approach in the major business lines as well as the control and audit areas. 3.Advanced Measurement Approach (AMA) * Regulatory capital requirement is determined using the quantitative and qualitative criteria for the AMA. * Banks can only use this approach if their local regulators/supervisory authorities have provided approval. * Qualitative Standards 1. Bank must have independent operational risk management function that is responsible for the design and implementation of banks’ operational risk management framework. 2. Bank’s internal operational risk measureme nt system must be closely integrated into the day-to-day risk management processes of the bank. 3.There must be regular reporting of operational risk exposures and loss experience to business unit management, senior management, and to the board of directors. 4. Bank’s operational risk management system must be well documented. 5. Internal and/or external auditors must perform regular reviews of the operational risk management processes & measurement systems. * Quantitative Standards 1. Banks must demonstrate that its approach captures potentially severe tail loss events. 2. Required to calculate regulatory capital requirement as the sum of expected loss (EL) and unexpected loss (UL) 3.Must be sufficiently ‘granular’ to capture the major drivers of operational risk. 4. Operational risk measurement system must include the use of internal data, relevant external data, scenario analysis and factors reflecting the business environment and internal control systems. Dis tributions important in estimating potential operational risk losses: 1. Loss frequency distribution * Distribution of number of losses observed during the time horizon (usually 1 year). * Loss frequency should be estimated from the banks own data as far as possible. One possibility is to assume a Poisson distribution: only need to estimate an average loss frequency. 2. Loss severity distribution * Distribution of the size of a loss given that a loss has occurred. * Based on both internal and external historical data. * Lognormal probability distribution is often used: only need to estimate mean and SD. AMA * The two distributions above are combined for each loss type and business line to determine the total loss distribution. * Monte Carlo simulation can be used to combine the two distributions. Four elements specified by the Basel Committee 1. Internal Data Operational risk losses have not been recorded as well as credit risk losses * Important losses are low-frequency high-severi ty losses * Loss frequency should be estimated from internal data 2. External Data * Data sharing or data vendors * Data from vendors: * Based on publicly available information biased towards large losses * Only be used to estimate the relative size of the mean losses and SD of losses for different risk categories. 3. Scenario Analysis * Aim is to generate scenarios covering all low frequency high severity losses * Can be based on both internal and external experience Aggregate scenarios to generate loss distributions 4. Business Environment and Internal Control Factors * Takes account of: * Complexity of business line * Technology used * Pace of change * Level of supervision * Staff turnover rates Power Law * Prob (v > x) = Kx-a * Power law holds well for the large losses experienced by banks. * When loss distributions are aggregated, the distribution with the heaviest tails tends to dominate. This means that the loss with the lowest alpha defines the extreme tails of the total los s distribution. Insurance * Important decision re operational risk is the extent to which it should be insured against.Moral Hazard * Risk that the existence of the insurance contract will cause the bank to behave differently than it otherwise would. * Example: a bank insures itself against robberies. As a result of the insurance policy, it may be tempted to be lax in its implementation of security measures – making a robbery more likely than it would otherwise have been. * Solution * Deductible – bank is responsible for bearing the first part of any loss * Coinsurance provision – insurance company pays a predetermined percentage of losses in excess of the deductible. * Policy limit – on total liability of the insurer.Adverse Selection * This is where an insurance company cannot distinguish between good and bad risks. * To overcome this, an insurance company must try to understand the controls that exist within banks and the losses that have been experien ced. Sarbanes-Oxley * Sarbanes-Oxley Act passed in the US in 2002. * Requires board of directors to become much more involved with day-to-day operations. They must monitor internal controls to ensure risks are being assessed and handled well. * Gives the SEC the power to censure the board or give it additional responsibilities. A company’s auditors are not allowed to carry out any significant non-auditing services. * Audit committee of the board must be made aware of alternative accounting treatments. * CEO and CFO must return bonuses in the event that financial statements are restated. TOPIC 6: LIQUIDITY RISK Overview * Liquidity refers to the ability to make cash payments as they become due. * Solvency refers to having more assets than liabilities, so that equity value is positive. Types of Liquidity Risk * Liquidity trading risk – markets can become illiquid very quickly.Cannot unwind asset position at a fair price fire sale prices. * Liquidity funding risk – risk of being unable to service cash flow obligations. Liquidity needs are uncertain. Liquidity Trading Risk * Price received for an asset depends on: * The mid market price * How much is to be sold * How quickly it is to be sold * The economic environment Bid-Offer Spread as a Function of Quantity * Dollar bid – offer spread, p = Offer price – Bid price * There is a spread which is constant up to some quantity. After a critical level (size limit of market makers), the spread widens.Proportional bid-offer spread= Offer price-bid priceMid-market price * Cost of liquidation in normal markets i=1n12si? i * N is the number of positions, alpha is the position of the instrument, s is the proportional bid-offer spread for the instrument. * Spread widens if market is in stressed conditions. * Cost of liquidation in stressed markets i=1n12(? i+ i)? i * Mean and SD, lambda is required confidence level Liquidity Adjusted VaRLiquidity-Adjusted Stressed VaR VaR+i=1n12si? i VaR+i= 1n12(? i+ i)? i Unwinding a Position Optimally (Two Options) Unwind quickly: trader will face large bid-offer spreads, but the potential loss from the mid-market price moving against the trader is small. * Unwind over several days: bid-offer spread each day will be lower, but the potential loss from the mid-market price moving against the trader is larger. Liquidity Funding Risk * Sources of liquidity * Liquid assets * Ability of liquidate trading positions (funding risk and trading risk are interrelated) * Wholesale and retail deposits * Lines of credit and the ability to borrow at short notice * Securitisation * Central bank borrowing (lender of last resort) Basel III Regulation * Liquidity Coverage Ratio: designed to make sure that the bank can survive a 30 day period of acute stress * Net Stable Funding Ratio: a longer term measure designed to ensure that stability of funding sources is consistent with the permanence of the assets that have to be funded. Liquidity Black Holes * Occurs when most market participants want to take one side of the market and liquidity dries up. Positive and Negative Feedback Trading * Exacerbates the direction of price movements * Positive feedback trader buys after a price increase and sells after a price decrease. Negative feedback trader buys after a price decrease and sells after a price increase. * Positive feedback trading can create or accentuate a black hole. Reasons for Positive Feedback Trading * Computer models incorporating stop-loss trading. Stop-loss trading = discarding position to prevent further losses. * Dynamic hedging a short option position. Example: if you have â€Å"sold an option† – cover yourself by going long i. e. buy underlying asset when price rises and sell when price decreases. * Creating a long option position synthetically * Margin calls The Leveraging CycleThe Deleveraging CycleIs Liquidity Improving? * Spreads are narrowing but arguably the risks of liquidity black holes are now greater than they used to be. * We need more diversity in financial markets where different groups of investors are acting independently of each other. Principles for Sound Liquidity Risk Management and Supervision (June 2008) * GFC regulators responded by undertaking a fundamental review of existing guidance of liquidity management and issued a revised set of principles on how banks should manage liquidity. Fundamental Principle for the Management and Supervision of Liquidity Risk 1.Sound management of liquidity risk – robust risk management framework. Governance of Liquidity Risk Management 2. Clearly articulate a liquidity risk tolerance 3. Strategy, policies and practices to manage liquidity risk 4. Incorporate liquidity costs, benefits and risks for all significant business activities. Measurement and Management of Liquidity Risk 5. Framework for comprehensively projecting cash flows arising from assets, liabilities and OBS items. 6. Actively monitor and control liquidi ty risk exposures and funding needs within and across legal entities. 7.Establish a funding strategy that provides effective diversification. 8. Effectively manage intraday liquidity positions and risks to meet payment and settlement obligations. 9. Actively manage collateral positions. 10. Conduct stress tests on a regular basis. 11. Formal contingency funding plan (CFP) in case of emergency. 12. Maintain a cushion of unencumbered, high quality liquid assets in case of stress scenarios. Public Disclosure 13. Publicly disclose information on a regular basis The Role of Supervisors 14. Regularly perform a comprehensive assessment of a bank’s overall liquidity risk management framework. 15.Supplement point 14 by monitoring a combination of internal reports, prudential reports and market information. 16. Should intervene to require effective and timely remedial action to address liquidity deficiencies. 17. Should communicate with other regulators e. g. central banks – coo peration TOPIC 7: CORE PRINCIPLES OF EFFECTIVE BANKING SUPERVISION Overview * Most important global standard for prudential regulation and supervision. * Endorsed by vast majority of countries. * Provides benchmark against which supervisory regimes can be assessed. * 1995: Mexican and Barings Crises Lyon Summit in 1996 for G7 Leaders. 1997: Document drafted and endorsed at G7 meeting. Final version presented at annual meetings of World Bank and IMF in Hong Kong. * 1998: G-22 endorsed * 2006: Revision of the Core Principles * 2011: Basel Committee mandates a major review, issues revised consultative paper. The Core Principles (2006) * 25 minimum requirements that need to be met for an effective regulatory system. * May need to be supplemented by other measures. * Seven major groups * Framework for supervisory authority – Principle 1 * Licensing and structure – Principles 2-5 * Prudential regulations and requirements – Principles 6-18 *Methods of ongoing banking s upervision – Principles 19-21 * Accounting and disclosure – Principle 22 * Corrective and remedial powers of supervisors – Principle 23 * Consolidated and cross-border banking – Principles 24-25. * Explicitly recognise: * Effective banking supervision is essential for a strong economic environment. * Supervision seeks to ensure banks operate in a safe and sound manner and hold sufficient capital and reserves. * Strong and effective supervision is a public good and critical to financial stability. * While cost of supervision is high, the cost of poor supervision is even higher. Key objective of banking supervision: * Maintain stability and confidence in the financial system * Encourage good corporate governance and enhance market transparency Revised Core Principles (2011) * Core Principles and assessment methodology merged into a single document. * Number of core principles increased to 29. * Takes account of several key trends and developments: * Need to deal with systemically important banks * Macroprudential focus (system-wide) and systemic risk * Effective crisis management, recovery and resolution measures. Sound corporate governance * Greater public disclosure and transparency enhance market discipline. * Two broad groups: 1. Supervisory powers, responsibilities and functions. Focus on effective risk-based supervision, and the need for early intervention and timely supervisory actions. Principles 1-13. 2. Prudential regulations and requirements. Cover supervisory expectations of banks, emphasising the importance of good corporate governance and risk management, as well as compliance with supervisory standards. Supervisory powers, responsibilities and functions 1.Clear responsibilities and objectives for each authority involved. Suitable legal framework. 2. Supervisor has operational independence, transparent processes, sound governance and adequate resources, and is accountable. 3. Cooperation and collaboration with domestic a uthorities and foreign supervisors. 4. Permissible activities of banks is controlled. 5. Assessment of bank ownership structure and governance. 6. Power to review, reject and impose prudential conditions on any changes in ownership or controlling interests. 7. Power to approve or reject major acquisitions. 8.Forward-looking assessment of the risk profile of banks and banking groups. 9. Uses appropriate range of techniques and tools to implement supervisory approach. 10. Collects, reviews and analyses prudential reports and statistical returns. 11. Early address of unsafe and unsound practices. 12. Supervises banking group on consolidated basis (including globally) 13. Cross-border sharing of information and cooperation. Prudential regulations and requirements 14. Robust corporate governance policies and processes. 15. Banks have a comprehensive risk management process, including recovery plans. 6. Set prudent and appropriate capital adequacy requirements. 17. Banks have an adequate credit risk management process. 18. Banks have adequate policies and processes for the early identification and management of problems assets, and maintain adequate provisions and reserves. 19. Banks have adequate policies re concentration risk. 20. Banks required to enter into any transactions with related parties on an arm’s length basis. 21. Banks have adequate policies re country and transfer risk. 22. Banks have an adequate market risk management process. 23.Banks have adequate systems re interest rate risk in the banking book. 24. Set prudent and appropriate liquidity requirements. 25. Banks have an adequate operational risk management framework. 26. Banks have adequate internal controls to establish and maintain a properly controlled operating environment for the conduct of their business. E. g. delegating authority and responsibility, separation of the functions that involve committing the bank. 27. Banks maintain adequate and reliable records, prepare financial state ments in accordance with accounting policies etc. 8. Banks regularly publish information on a consolidated and solo basis. 29. Banks have adequate policies and processes e. g. strict customer due diligence. Preconditions for Effective Banking Supervision 1. Provision of sound and sustainable macroeconomic policies. 2. A well established framework for financial stability policy formulation. 3. A well developed public infrastructure 4. A clear framework for crisis management, recovery and resolution 5. An appropriate level of systemic protection (or public safety net) 6. Effective market discipline 001: IMF and World Bank Study on Countries’ Compliance with Core Principles * 32 countries are compliant with 10 or few BCPs * Only 5 countries were assessed as fully compliant with 25 or more of the BCPs. * Developing countries less compliant than advanced economies. * Advanced economies generally possess more robust internal frameworks as defined by the ‘preconditions’ 2008: IMF Study on BCP Compliance * Based on 136 compliance assessments. * Continued work needed on strengthening banking supervision in many jurisdictions, particularly in the area of risk management. More than 40% of countries did not comply with the essential criteria of principles dealing with risk management, consolidated supervision and the abuse of financial services. * More than 30% did not possess the necessary operational independence to perform effective supervision nor have adequate ability to use their formal powers to take corrective action. * On average, countries in Western Europe demonstrated a much higher degree of compliance (above 90%) with BCP than their counterparts in other regions. * Africa and Western Hemisphere weak. Generally, high-income countries reflected a higher degree of compliance. TOPIC 8: CAPITAL ADEQUACY Overview * Adequate capital better able to withstand losses, provide credit through the business cycle and help promote public confidence in ba nking system. Importance of Capital Adequacy * Absorb unanticipated losses and preserve confidence in the FI * Protect uninsured depositors and other stakeholders * Protect FI insurance funds and taxpayers * Protect deposit insurance owners against increases in insurance premiums * To acquire real investments in order to provide financial services e. . equity financing is very important. Capital Adequacy * Capital too low banks may be unable to absorb high level of losses. * Capital too high banks may not be able to make the most efficient use of their resources. Constraint on credit availability. Pre-1988 * Banks regulated using balance sheet measures e. g. ratio of capital to assets. * Variations between countries re definitions, required ratios and enforcement of regulations. * 1980s: bank leverage increased, OBS derivatives trading increased. * LDC debt = major problem 1988 Basel Capital Accord (Basel I) * G10 agreed to Basel I Only covered credit risk * Capital / risk-adjusted assets > 8% * Tier 1 capital = shareholders equity and retained earnings * Tier 2 capital = additional internal and external resources e. g. loan loss reserves * Tier 1 capital / risk-adjusted assets > 4% * On-balance-sheet assets assigned to one of four categories * 0% – cash and government bonds * 20% – claims on OECD banks * 50% – residential mortgages * 100% – corporate loans, corporate bonds * Off-balance-sheet assets divided into contingent or guarantee contracts and FX/IR forward, futures, option and swap contracts. Two step process (i) derive credit equivalent amounts as product of FV and conversion factor then (ii) multiply amount by risk weight. * OBS market contracts or derivative instruments = potential exposure + current exposure. * Potential exposure: credit risk if counterparty defaults in the future. * Current exposure: cost of replacing a derivative securities contract at today’s prices. 1996 Amendment * Implemented in 1998 * Requi res banks to measure and hold capital for market risk. * k is a multiplicative factor chosen by regulators (at least 3) VaR is the 99% 10-day value at risk SRC is the specific risk charge Total Capital = 0. 08 x [Credit risk RWA + Market risk RWA] where market risk RWA = 12. 5 x [k x VaR + SRC] Basel II (2004) * Implemented in 2007 * Three pillars 1. New minimum capital requirements for credit and operational risk 2. Supervisory review: more thorough and uniform 3. Market discipline: more disclosure * Only applied to large international banks in US * Implemented by securities companies as well as banks in EU Pillar 1: Minimum Capital Requirements * Credit risk measurement: * Standardised approach (external credit rating based risk weights) * Internal rating based (IRB) Market risk = unchanged * Operational risk: * Basic indicator: 15% of gross income * Standardised: multiplicative factor for income arising from each business line. * Advanced measurement approaches: assess 99. 9% wor st case loss over one year. * Total capital = 0. 08 x [Credit risk RWA + market risk RWA + Operational risk RWA] Pillar 2: Supervisory Review * Importance of effective supervisory review of banks’ internal assessments of their overall risks. Pillar 3: Market discipline * Increasing transparency – public disclosure Basel 2. 5 (Implemented 2011) * Stressed VaR for market risk * Incremental risk charge Ensures products such as bonds and derivatives in the trading book have the same capital requirement that they would if they were in the banking book. * Comprehensive risk measure (re credit default correlations) Basel III (2010) * Considerably increase quality and quantity of banks capital * Macroprudential overlay – systemic risk * Allows time for smooth transition to new regime * Core capital only retained earnings and common shares * Reserves increased from 2% to 4. 5% * Capital conservation buffer – 2. 5% of RWA * Countercyclical capital buffer * Tracing/ monitoring of liquidity funding Introduction of a maximum leverage ratio Capital Definitions and Requirements * Common equity > 4. 5% of RWA * Tier 1 > 6% of RWA * Phased implementation of capital levels stretching to Jan 1, 2015 * Phased implementation of capital definition stretching to Jan 1, 2018 Microprudential Features * Greater focus on common equity * Loss-absorbing during stress/crisis period capital conservation buffer * Promoting integrated management of market and counterparty credit risk. * Liquidity standard introduced introduced Jan 1, 2015 Introduced Jan 1, 2018 Available Stable Funding FactorsRequired Stable Funding Factors Macroprudential Factors * Countercyclical buffer * Acts as a brake in good times of high credit growth and a decompressor to restrict credit during downturns. * Within a range of 0-2. 5% * Left to the discretion of national regulators * Dividends restricted when capital is below required level * Phased in between Jan 1, 2016 – Jan 1, 2019 * Leverage Ratio * Target 3% * Ratio of Tier 1 capital to total exposure > 3% * Introduced on Jan 1, 2018 after a transition period * SIFIs * Required to hold additional loss absorbency capital, ranging from 1-2. 5% in common equity