Nursing: Promising Pathways

I once heard it said that vocation should be the place where your greatest talents meet the world’s greatest needs.   For me the intersection between those two things lies in nursing.   Without question nursing has become one of our country’s greatest needs, as the deficit for certified nurses rises and more and more people in our nation’s hospitals are cared for by unqualified nurses.  Ã‚   Likewise, I believe that my greatest talents lie in this field and that my skill set will help me to provide the highest standard of care at a time when patients need it the most. Nursing is not the glamorized profession that one often sees on popular television shows.   It is not about looking pretty in a white uniform.   From my experience, being a nurse is actually the opposite of all that.   It entails working long hours and doing a lot of hard work. These are all part of why I chose to be a nurse. All the hard work and the fatigue pay off in the end when one has been able to save lives and make patients feel more comfortable during their times of need. In addition to the need that I will be fulfilling in my nursing career, I believe that it will be a rewarding job, as I will have the opportunity to help and to care for many people.   I have a passion for working closely with patients, regardless of their background or beliefs, and I believe that nursing is not merely a way to make a living, but a means of giving back to society. Not only will nursing be a rewarding and meaningful career for me, but my specific skill set gives me a great deal to offer my patients and my colleagues.   I am competent in Professional Health Care Management with the ability to provide and promote the highest standards in the rapidly changing and ever demanding Healthcare sector, driven by a vast global economy and vibrant technological innovation. I am attentive to detail, highly organized with strong analytical and decision-making skills. I have excellent communication and interpersonal skills, allowing me to provide care, compassion, and emotional support for irritable, stressed and ill patients.   I am highly knowledgeable in current and pertinent issues within and without the Healthcare sector.   I am able to work under pressure for long hours and to do a considerable amount of lifting such as moving patients, assisting with toileting needs and responding to emergencies.   I have a polished professional demeanor, which enables me to develop and maintain relationships with professionals in the healthcare sector. Furthermore, I have excellent conversational skills in three international languages; English, Spanish and Italian. I believe that my prior experience and my education will also help me to contribute significantly to this field.   I received a Pre-Med and Trustee scholarship to attend Suffolk University in Boston, where I major in Radiation Biology.   I have also become certified as a Phlebotomy technician, EKG technician and a Medical Clinic assistant.   Furthermore, I am pursuing a nursing assistant course as a State Certified Nursing Assistant (CNA) at the American Red Cross in Peabody, MA where I am learning procedures such as psychosocial care, restorative care, resident personal care, resident rights, communication, general safety procedure and infection control. In addition to my training, I have also held several positions in the medical field that have both increased my knowledge and proved to me that nursing is indeed the field that I want to dedicate myself to.   Since 2006 I have worked as a Radiation Therapist Intern at the Massachusetts General Hospital/ Brigham and Women Hospital / DFCI Boston. My responsibilities include accurate positioning of patients for treatment, operation of advanced medical equipment, quality assurance and providing competent patient care. I am also in charge of assisting the oncologist and the physician with treatment plans during delicate procedures.   From 2005 to 2006, I worked as a Medical Assistant at Alexyenko Medical Associates Lynn, MA. My duty was to assist in phlebotomy and EKG procedures. These are delicate procedures that demand the maintenance of high standards, both of which I believe I showed great aptitude for. I aim to work for an organization where personal growth is encouraged, human values are nurtured and talents are utilized in the attainment of organizational goals. I would like to be able to apply what I have been learning so far by taking a hands-on and direct approach.   I would like to attain a Masters Degree in order to gain the knowledge and experience to better prepare myself for medical school.   By earning my degree, I am being both practical and responsive to the needs of the time.   It is practical because I have chosen a career that will allow me to utilize my talents and experience, and responsive because there is an overwhelming need for qualified nurses. I believe that I have had an abundance of valuable experiences and talents to offer the healthcare field.   My prior positions have taught me both technical and soft skills. Technical competence is a core requisite of being successful in any profession. And yet more than this, my exposure in these institutions has taught me fortitude, patience, love of authentic service, and a strong spirit of volunteerism. My desire to be of real service to others has compelled me to move ahead and take advanced studies in this field.   It is with great joy and excitement that I join the place where my talents meet one of our country’s critical needs.   

DuPont’s Divestiture of Conoco

DuPont began life in 1802, as a gunpowder manufacturer supplying the US Army under President Thomas Jefferson. The company had a long tradition of technological innovations in business and it continues to serve worldwide markets including food and nutrition; health care; agriculture; fashion and apparel; home and construction; and electronics. Among some of its inventions are nylon stockings invented in 1939, Teflon for pans, Kevlar for bullet-proof vests, stainmaster for carpets, the synthetic fabric lycra, and Dacron for clothing. In 1999 the company held a portfolio of 2000 trademarks and brands. DuPont was the 15th largest company in the US with its 1998 revenue reaching $45. 1 billion. The company operated 200 manufacturing and processing facilities in 65 countries with 98,000 employees worldwide. Conoco began in 1875 as the Continental Oil and Transportation Co. , one of the first petroleum marketers in the West. The company has made it through plenty of tough and challenging times from the stock market crashing just a month after Conoco took its stock public, to overseas expansion, to the oil crisis of the 19070’s. Then in 1981 a simple proposal by Canada's Dome Petroleum about acquiring a Conoco subsidiary, Hudson's Bay Oil and Gas left the company wide open. In order to assure an adequate supply of petroleum products to use as chemical feed stocks, DuPont bought Conoco on Sept. 30, 1981. Conoco became a wholly owned DuPont subsidiary in the largest merger ever at that time, costing DuPont $7. 8 billion. As a subsidiary of DuPont, Conoco became a major, integrated, global energy company operating in 40 countries worldwide. The company was involved in both downstream and upstream activities like exploring for, developing, refining, marketing, transporting, and selling crude oil and natural gas. In 1998, Conoco ranked 8th in worldwide production of petroleum liquids by US companies, 11th in natural gas production, and 8th in refining throughput. In 1997 both DuPont and Conoco planned to pursue new corporate strategies: DuPont wanted to transform into a life sciences company focused more on biotechnology and less on petrochemicals, and Conoco desired financial independence to make significant foreign asset investments. While part of DuPont, Conoco doubled its value between 1986 and 1996, and realigned its assets. By late 1998, DuPont divested Conoco in a two-step process. First it would sell a minority stake in Conoco through an IPO otherwise known as an IPO carve-out. Then it would execute a spin-off and sell the rest of its ownership interest in the subsidiary at a later time. Under the split-off, DuPont shareholders would be given the opportunity to exchange their DuPont shares for shares in Conoco at a predetermined ratio of 2. 5 to 1. Participation in the exchange rate would be completely voluntary. On October 22, 1998 the Conoco IPO netted $4. 4 billion for 30% of Conoco culminating in the largest IPO in history. Then on August 9, 1999 the swap of DuPont stock for Conoco stock was finalized. DuPont secured about $21 billion in after tax value through the IPO and stock swap. I think DuPont’s two-stage divestiture worked the best because the company was able to make the transaction tax-free at both the corporate and personal levels. This basically means that DuPont sold off shares of Conoco in two separate stages. The company avoided the corporate capital gains tax by structuring the deal as a primary offering, which is the first of issuance of stock for public sale from a private company. Under this approach Conoco would sell new shares to the public and use the money from the offering to pay down an equivalent amount of its debt. If a second offering had been used, DuPont would directly sell a portion of its Conoco shares for cash, possibly creating a capital gains tax liability for itself if the sale proceeds exceeded its tax basis in the shares. The primary public offering of 25% of Conoco by DuPont was also good for shareholders because it met the objectives of maximizing shareholder value and it also allowed Conoco to capitalize on different investment opportunities for energy companies going on at the time. In order to make the second stage completely tax free DuPont had to satisfy a number of IRS rules and regulations. These rules stated that DuPont had to control Conoco immediately before the split-off, meaning that it had to control at least 80% of Conoco’s stock. In addition the split had to be motivated by a valid business purpose. Also DuPont had to get rid of all Conoco stock so it would not have any control over the company after the deal was completed. Conoco had to be recapitalized or reorganized into two classes of common stock. Class A stock that carried one vote each, issued to the public and Class B stock with five votes each, retained by DuPont for later disbursement to DuPont shareholders in the exchange offer. Prior to the IPO, Conoco would have to issue a $7. 5 billion promissory note to DuPont as a dividend. The payment would be tax free to both parties because at the time DuPont owned all of Conoco. Conoco would in turn, use the proceeds to pay back part of the note and other intercompany notes with DuPont. While I do agree with the Chief Operating Officer that a 100% IP of Conoco would raise a significant amount of cash to use in our core business growth internationally, allowing us to expand our global operations. I think the equity care-out was the best choice for DuPont to do instead of a complete 100% IPO. The reason I say that is because the deal still allowed DuPont to raise some capital but it also allowed DuPont to retain firm control of the subsidiary before, selling the remaining shares in a tax-free spin-off at a later date. A 1998 working paper from Pennsylvania State University examined 83 equity carve-outs done between 1981 and 1990, and found that carved-out companies had significantly higher revenue and asset growth, higher earnings, and higher capital spending than the industry average during the first three years after the carve-out–achievements, the authors say, that are a direct result of 80 percent of the deals tying executive compensation to the share price of the carved-out company at the time it goes public. â€Å"It's a way of providing a stronger incentive for subsidiary executives to perform,† says James A. Miles, one of the authors of the study, along with Heather Hulburt and J. Randall Woolridge. Parent companies also benefit from a carve-out. The Penn State study, in fact, found that these companies had a higher return on assets in the first year after the carve-out. And a similar study by J. P. Morgan & Co. , which examined 101 carve-outs between 1986 and 1997, documented that, on average, the share price of the parent rose between 3 and 4 percent in the 90 days following the announcement of a carve-out. The company’s ownership of Conoco has added great marketing and purchasing clout to DuPont’s operations just like the Executive VP for Research and Development and Product Development suggests, but again I don’t think that owning a majority share would benefit the company like getting rid of all ownership would do. The decision to retain majority ownership, however, may limit the upside to the deal. The J. P. Morgan study found a distinct difference in the share price performance of carve-outs that later became spin-offs and carve-outs that did not. In the case of 12 carve-out companies in which the parent announced there would be a later spin-off, the share price of the carve-out performed 11 percent above the market 18 months after the initial public offering. The shares of all other carve-outs–those without an announced spin-off later–actually underperformed the market by 3 percent. In closing I think DuPont did the right thing when they decided to go through with a two-stage divestiture of Conoco. I think they got the most bang for their buck by doing the deal this way. DuPont was able to net $4. 4 billion for 30% of Conoco resulting in the largest IPO in U. S. history. DuPont was also able to spin-off the rest of their shares of Conoco and secured about $21 billion in after tax value through the IPO and a stock swap. I think this was the best move because both companies were looking to go in different directions. DuPont wanted to transform into a life sciences company focused more on biotechnology and less on petrochemicals, and Conoco desired financial independence to make significant foreign asset investments.References: 1. England, Robert Stow. (1999). How companies are unlocking value by carving out pieces of their business.† CFO Magazine, March 1999, Retrieved April 2011, from http://www.spinoffadvisors.com/articles/cfomagazine0399.htm 2. Conoco Phillips Web Site. Retrieved April 2011, from http://www.conocophillips.com/EN/about/who_we_are/history/conoco/Pages/index.aspx3. Chemical Online. (1998, May 11). Chemical Online.   DuPont Announces Plans to Divest its Conoco Energy Operations. Retrieved April 2011, from http://www.chemicalonline.com/article.mvc/DuPont-Announces-Plans- to-Divest-its-Conoco-E-0001. 4. Ohio University. DuPont spins off Conoco: Good Move for Conoco Retrieved April 2011, from   http://oak.cats.ohiou.edu/~rm663596/esp/case.htm

Elwyn Company Essay

In the Elwyn Company, the relationship between output (Q) and the number of hours of skilled labor (S) and unskilled labor (U) is Q 300S 200U – 0.2S2 – 0.3U2 The hourly wage of skilled labor is 10, and the hourly wage of unskilled labor is 5. The firm can hire as much labor as it wants at these wage rates. Elwyns chief engineer recommends that the firm hire 400 hours of skilled labor and 100 hours of unskilled labor. Evaluate this recommendation. If the Elwyn Company decides to spend a total of 5,000 on skilled and unskilled labor, how many hours of each type of labor should it hire If the price of a unit of output is 10 (and does not vary with output), how many hours of unskilled labor should the company hire (Chapter 5 problem 1. see answer on webct assignment 2) The Smith Company made and sold 10,000 metal tables last year. When output was between 5,000 and 10,000 tables, its average variable cost was 24. In this output range, each table contributed 60 percent of its revenue to fixed costs and profits. What was the price per table If the Smith Company increases its price by 10 percent, how many tables will it have to sell next year to obtain the same profit as last year If the Smith Company increases its price by 10 percent, and if its average variable cost increases by 8 percent as a result of wage increases, how many tables will it have to sell next year to obtain the same profit as last year Chapter 6 problem 12. see answer on webct assignment 2) Raleigh Company is a monopolist, producing and selling the product with the demand curve P 30 – 6Q where P is price (in thousands of dollars) and Q is the firms output (in thousands of units). The firms total cost function is TC 14 3Q 3Q2 where TC is total cost (in millions of dollars) What is the firms marginal revenue (MR) and marginal cost (MC) At what level of output does the firm maximize its profit What is the profit maximizing price (P) of the firm Is the price higher than marginal cost (MC) What is the profit of the firm (Chapter 8 problem page 267) 4. James Pizzo is president of a firm that is the price leader in the industry that is, it sets the price and the other firms sell all they wa nt at that price. In other words, the other firms act as perfect competitors. The demand curve for the industrys product is P 300 – Q, where P is the price of the product, and Q is the total quantity demanded. The total amount supplied by the other firms is equal to Qr, where Qr 49P.

MBA in Finance Personal Statement Example | Topics and Well Written Essays - 750 words

MBA in Finance - Personal Statement Example Like most other individuals of my age, I had been directed towards completing tasks mechanically. Little had I known that I had been drawn towards engineering. However, to my disappointment, I could not make it to Embry Riddle University as I could not clear the engineering exam for that. Nevertheless, I was determined to move forward in life. Behind an ardent reader, I had been inspired by Einstein’s quote of playing the ‘game’ of life better than anyone else. Considering that it was now time to chart my career path, I decided to enhance my knowledge of finance. In doing so, I came across reading several books such as articles in the Economist magazine. Even though I could not make much sense out of them at that time, they were instrumental in my success at university later on. This eventually led me to studying Finance at UT in the USA where I developed interest in the subject in a short frame of time. During this period, I greatly improved my analytical, writin g and numerical skills. From making investment decisions to solving managerial problems, the baggage I carried in this field was quite comprehensive. My experience at UT was further enhanced by my earlier diploma in English Language in Orlando which was my first step in to the diverse and multicultural world. Even though I had travelled to various places previously, such as Europe, North America, Africa and Asia for vacations, never had I encountered as a diverse a place as the U.S.A. This short educational experience  ­Ã‚ ­has developed my cross-communication skills which are necessary for survival for any profession in the modern workplace. Furthermore, my experience at UT as a Finance student has helped me relate finance with everyday life. Previously I perceived finance as a strictly specialized and confined domain. However, by studying the real-life applications of finance I was able to relate theory with practice. Most importantly, I could relate most of the concepts to the recent financial downturn which turned around the economies of most advanced nations such as U.K and U.S. I was able to understand how most economies work and how the public and government policies jointly determine the state of economy in most countries. Even though I still endeavor to understand complex financial models and theorems, I do not have much difficulty in understanding the conceptual content and application. In the contemporary age of advanced information systems, I believe the competitive advantage of a Finance professional does not lie in the reproduction of models or calculations but the conceptual analysis and interpretation of those in the context of real-life scenarios. Considering that I had been an out-station student studying in UT in U.S.A, I have gained insight into the demands of an academic and professional life. Since I was in-charge of everything and had to do everything on my own, I learnt to take my own initiatives and gradually became independent. The demanding commitments to academics further taught me how to organize my study schedule and in no time I learnt how to communicate with my peers. This also provided a tremendous platform for my personal growth as I learnt how to strike a balance between personal and academic life. I was much clearer regarding my goal (of pursuing a career in finance) and was determined to enhance my horizon of learning by taking a giant leap into a well-reputed college for my Masters. However, I

Accounting software Essay Example | Topics and Well Written Essays - 1750 words

Accounting software - Essay Example An Accounting Information System (AIS) is an organized framework which is used to keep the business accounting records and information by an organization (Wikipedia.org, 2006). The system can be a manual system or a software based application. This report covers the essential user requirements for the development of an Accounting Information System application, fully equipped to cater all the requirements of internal and external stakeholders.After conducting a formal and organized users' needs assessment survey, that included interviewing key users and process owners and studying the business processes, the analyst team has identified the major requirements of the proposed accounting information system (Accounting Software Research, 2002).The software should include ABC's chart of accounts. If this is not set up properly so that revenues and costs are captured and segregated into the best suited categories, the financial reports will be useless and misleading.All transactions need t o be recorded by AIS. No transaction, once entered, will be allowed to be deleted. Transactions may, however, be reversed if incorrectly recorded in the AIS. The AIS should provide facility for transaction processing and activities like real time transactions entries, validation and verification checks, posting and reconciling, balancing totals etc. The AIS should maintain and produce financial statements for the company based on the transactions that are entered into the software. The system should be able to group various items as per the rules already provided in the system and should be able to develop all relevant financial statements of the company like Balance Sheet, Income Statement, Cash Flow Statement, Statement of changes in equity, etc. Accounts Payable Vendor Master File All related information about vendors and suppliers should be stored in the application appropriately and should be accessible to authorized personnel only. Purchasing Controls The procurement process of the company should be automated. There should be features for request for proposal, purchase orders printing and control, vendor and order details, invoice, etc. Check Writing Checks should be automatically printed from the system upon request. The procedure should take into account proper authorizations and verification features. Accounts Receivable Customer Master File All related information about customers is kept in the system and is accessible to authorized personnel only. Invoicing The customer invoice process that is followed by business should be automated; hence invoices will be produced by the system when necessary information is entered by the operator. Cash Receipts and Debt Collection Rules should be defined in the system for the process of cash receiving from customers using cash, bank checks and other means. Similarly, the system should be able to track debts and loans, should be programmed so that the loans are properly aged, and the collection procedures that is being applied to recover the debt, should be recorded in the system. Payroll Employee Files All related information about employees of the company is kept in the system and is accessible to authorized personnel only. Human Resource Management Payroll benefits, skills classification, applications for recruitment, selection procedures, screened candidates' information, training records, employee health and safety records. Vacation records etc. will be maintained in this sub-module. Payroll Check Writing Payroll checks will be produced automatically by the system at due date. The necessary monitoring controls should be applied to ensure proper treatment of rewards, bonuses, stop payments etc

Paper 2 - English Drama Essay Example | Topics and Well Written Essays - 750 words

Paper 2 - English Drama - Essay Example Brecht describes epic theatre as a form of drama and a methodological approach to the creation of the plays where, â€Å"Its qualities of clear description and reporting and its use of choruses and projections as a means of commentary earned it the name ‘epic’† (Brecht and Willet 121). Moreover Brecht believed that, â€Å"It is most important that one of the main features of the ordinary theatre should be excluded from [epic theatre]: the engendering of illusion† (Worthen 396). Hence he uses drama as a mode of unveiling the bitter truths about human nature, life in general and the socio-political behavior of human beings. â€Å"Mother Courage and Her Children† is set in the time of 17 century during the Thirty Years War. The Play is an intriguing tale of a mother who loses her three children because of the war though the play is an indirect comment on the time of Nazi Regime. Brecht believed that drama should be used to enlighten the readers about th e reality rather than it being used as a mode of escape therefore he portrays the grotesqueness of war and inhumane side of human beings so that the readers would realize the extent of deterioration that has occurred. For example in the Mother Courage right after her daughter’s death says, â€Å"I hope I can pull the wagon by myself. Yes, Ill manage, theres not much in it now. I must get back into business† (70). This line is a cruel projection of the height of selfishness that has replaced human emotions because of the war. Then again there is a constant oscillation between Mother Courage’s love and hatred for war where at one place she condemns it because she is unable to gain profit while at other times she loves it because it helps her earn a living as she says, â€Å"I wont let you spoil my war for me. Destroys the weak, does it? Well, what does peace do forem, huh? War feeds its people better† (58). Although Brecht borrows some of the

Principles of Operations Management by J.Heizer & B.Render Essay

Principles of Operations Management by J.Heizer & B.Render - Essay Example Creating an image thus refers to the process of determining the perception the organization seeks to influence on its different publics. The organization interacts differently with its different publics. Among the publics is its staff, the customers, shareholders and the media among others. The management of the organization must determine the perception that each of the groups have about its operations in order to maximize of profitability (Hill & Jones, 2011). In analyzing the importance and the process of image building, the author uses the metaphor of a porter who at the beginning of his crafting work has a piece of clay but must work and create a new product from the same. The porter therefore conceptualizes an idea and determines the best way of executing through an appropriate design. In the metaphor, the author sees managers as artisans and the strategies they use to approach the various organizational publics as their clay. Just as the porter some must they employ the most a ppropriate strategies to earn the organization the best reputation among every audience group in order to sustain the organization’s profitability objective. Strategy determination is most important; the managers must determine an appropriate strategy of executing a plan of action with the view of achieving a particular objective. The strategy is important to the artisan just as it is to the managers. The author of the article approaches the concept as a review of the organizations past performance and its plans for the future. In crafting a pot or nay other clay product, the craftsman will refer to his past works before infusing such thoughts with the future products. Using his past works as a reference to influence his current work, the porter thus creates a new product that best fits his objectives. The same scenario applies to managers who must make effective managerial decisions on an everyday basis. The decisions the managers make influence the public’s perceptio n about the organization. In doing this, the managers must therefore use their experiences at the organization. An analysis of past decisions provides managers with an effective and reliable reference points (Mintzberg, 1971). The managers thus refer to the outcomes of past decisions of the diverse publics the organization has before constructing a current decision, which must also reflect the organization’s future. While the future is always a gamble, the past on the contrary is concrete owing to the fact that the organization had previously experienced the same. The managers thus make decision using the past reactions of the same publics but project such reactions on the future. In case of desirable reactions, the organization must improve on such with the view of increasing the scope of the organization’s acceptance among its specific publics. In case of an undesirable reaction by a particular public, the managers must seek to redress such by employing effective fut ure decisions that best address all the points of weakness in the past decisions. The author asserts that managers must read the mind of the organization. In doing this, the manager must assume the position of the specific public and therefore work on strategies that are effective enough to address their particular concerns about the organization. The process is cumbersome but requires an equally effective market research. Marketing is a management role concerned with the determination, identification and the sustainment of the customer’s demands from the market. Marketers as managers thus rely on the quality of their market researches to determine the future productions of the organization. The same is the case with all other managers when determining the strategies of solving

Key Skills Statement Personal Example | Topics and Well Written Essays - 1500 words

Key Skills - Personal Statement Example I did not arrive in the meeting place with only an idea of the project but with a properly-researched topic. The first meeting for example, I already had the idea on what I want and yes, how I would do it. In that way, I did not have a hard time explaining to my mentor my ways and means for the project. More than just knowing what I wanted to do for the research paper, I also had the inkling on what the topic is about and how I would gather facts or information for the project. The advantage for this was that the mentor for his part knew specifically how he would correct me in the plan that I presented. The flow of the conversation was also clear and uninterrupted. The second meeting where we talked of my completion of the gathering of information and my working halfway also became fruitful. He did not expect a totally completed project, however, with the help of a list containing updates on my completed research in word format made it easy for him to critique what I have done and therefore, it also became easier for him to suggest new ways of improving the process. The third meeting where I considered the grandest because it entailed the biggest preparation became a challenge. Of course, I did not come out with unfinished project. I came out with my masterpiece, a presentation of my hard labor with the complete information and explanation on the topic that I chose, that was the sign of my preparation. One of the factors that helped me discuss properly the project with my mentor was proper questioning. It became very significant because that was where my doubts and the unknown information of the next step got answered. I would like to illustrate the meaning and significance of questioning through the exact words of Owen Hargie (2003) from his book entitled "Skilled Interpersonal Communication: Research, Theory, and Practice" page 116. "The question is a key constituent of the DNA of interactional life. In our communication courses we use an exercise in which we ask four volunteers to come to the front of the class. We then instruct them to carry on a conversation about 'the events of the week'. The only rule is that no one is allowed to ask a question. Two things happen: first, the interaction is very stilted and difficult; second, someone very quickly asks a question." The mentioned statement above tells exactly of the power of questions as the main helper to getting work done. And because questions are mainly any statement that attracts answers, it doesn't mean that all questions had to be said. Some of them can be heard in a simple "hmmm' or a simple pause. This is also called the non-verbal questioning which can be said to be the automatic signal to uncertain questions or simple hesitation to raise questions. During our discussion, nonverbal questions were unavoidable. There were times when I hesitated to directly state my case of doubt on a topic but it sure could be read from my eyes and simple remarks like what I mentioned a while ago. Nodding of the head is another example of these nonverbal acts (O. Hargie, 2003, page 116). But then again, from the discussion that we had, what is certain to have made great advantage was the direct questioning where it addressed specific questions on the technical part of the project. My questions for my mentor were not the only time that I had to use the process. I also had to use it to my interviewees so I could gather information.

MBNQA Assignment Example | Topics and Well Written Essays - 250 words

MBNQA - Assignment Example This is by carrying out focus groups, gathering data from web users and analyzing trends of the call center. The Access Center established by AtlantiCare in 2006 is a good example of the benefits used in overcoming the challenges. The Center was established after a research conducted by a focus group stated that customers were frustrated when navigating and using the health care system (Duarte, Goodson & Dougherty, 2014, pg. 27). This effective approach resulted in AtlantiCare increasing its revenues, getting a high market share and increased satisfaction from their customers. Other organizations can learn that providing quality and constant improvement in the health care field is vital. These organizations need to make sure that their customers are well satisfied and served according to the needs they have. Moreover, offering effective healthcare is necessary. These organizations should realize that they need to improve community wellness and health by offering better services. Additionally, by training and recruiting well and qualified staff will enhance performance in these organizations as seen in AtlantiCare. Duarte, N. T., Goodson, J. R., & Dougherty, T. M. P. (2014). Managing innovation in hospitals and health systems: Lessons from the Malcolm Baldrige National Quality Award Winners. International Journal of Healthcare Management, 7(1),

The Tibetan Book of the Dead Essay Example for Free

The Tibetan Book of the Dead Essay Introduction All the teaching of Buddha, known all over the world as Buddhism, is based on the ideas of karma and reincarnation. Buddhists believe that after death the person is reborn and gets another incarnations in order to pay his karmic debts and get a chance to become enlightened of liberated. That is the reason they regard death as nothing but a pass to another physical incarnation and try to use this chance to get better conditions of life. The Bardo Thodol, also known as the Tibetan Book of the Dead belongs to the secrete texts of Buddhism and describes the experience of the death and gives guidelines how to pass from one incarnation to another. The name Bardo means the period between the death and next birth. The Tibetan Book of the Dead contains practical guidelines on the way to the next incarnation. In addition to ancient rituals and rites, it also contains main philosophical doctrines of Buddhism. The study of this book can give a better understanding of fundamental ideas of Buddhism and key concepts of this religion. General features of Tibetan Buddhism Buddhism is one of three major world religions. It was founded about 2.500 years ago by Siddhartha Gautama Buddha. Its main idea is a salvation from the world sufferings with the help of meditation. There are more than 350 million of followers of Buddhism in the modern world. Most followers of Buddhism live in India, China, Thailand, Cambodia, Myanmar, Bhutan, Sri Lanka and Tibet. Buddhism came to Tibet and 12 centuries later it appeared in India. It became widespread in Tibet beginning from the 7th century. It came in conflict with local religion called Bon, despite their main concepts agreed on many points. Tibetian Buddism assimilated a lot from Bon and The Tibetan book of The Dead is a perfect example of synthesis of these two religions. Buddhist term for awakening is nirvana. Nirvana means liberation from samsara – cycle of rebirth and entering another mode of existence. Buddhism states that all human beings are born in life full of sufferings and pain. Desires make people unhappy, as our mind can’t be satisfied with anything it gets and always asks for more. Making true one wish people start longing for something else and this vicious circle never ends. Existence full of sufferings and pain doesn’t stop after death as Buddhists believe in rebirth – the repeated process of life and death conditioned by the karma law. The only way out of this misery and pain is nirvana, which can be achieved through meditation and following the principles of Buddhism and to achieve the enlightenment or awakening of selfhood. Reaching enlightenment means reunion with one’s true Self. The state of nirvana is hard to define, as it lies beyond words and notions, but the most appropriate categories used to define it are emptiness, space and openness. In other words, reaching the state of nirvana means realization the emptiness of the true Self. Buddha is a Sanskrit term that means â€Å"awakened one† and it describes Buddha’s nature. Buddha was the first person who achieved liberation or awakening and could pass his experience to other people. He teaches people that all of them have the potential to become Buddha, reaching the state of nirvana. Tibetan Perspectives on Death and Dying The concept of death accepted in Buddhism is fundamentally different from the one, which exists on the West. Eastern people believe in reincarnation and that is why the death for them is not an end of existence but just an interesting journey and great opportunity. Buddhist teaching pays special attention to the death experience as a transitional state from one incarnation to another. Death rituals, described in the Book of the Dead derive from Bonism, traditional Tibetan religions, which preceded Buddhism. Ideas from Bonism naturally supplement new Buddhism concepts and together they combine an organic combination of religion, philosophy and practical rituals. The concept of death in Buddhism has two meanings and The Book of the Death speaks about two of them. In the first interpretation the death is regarded as a physical death, the cease of earthy existence. The first part of the Book of the Dead, The First Bardo deals with this death. Another meaning of death is a death of ego. It’s an esoteric meaning of death and it stands for inner transformation. This inner transformation is the ultimate goal of Buddhism and The Book of Dead deals with this kind of death too. As Tibetan Lama Govinda states in his introduction to this book, It is a book for the living as well as for the dying. (The Tibetan Book of the Dead: or, The After-Death Experiences on the Bardo Plane, according to Lama Kazi Dawa-Samdups English Rendering) The book contains a lot of layers of meaning and can have several levels of interpretation. For centuries this book was kept in secret and only separate religious authorities could access it. Bardo Thodol – the Guidance for the Death and Life The Bardo Thodol was used by lamas. Literary translation of the name of the book means â€Å"liberation while hearing being in the intermediate state†. Lamas use this intermediate state as a mean to appeal to the true self of the person, when his physical body is passing away and thus give him an opportunity to stop the endless chain of births and deaths and get final liberation, or nirvana. There are three intermediate states described in the Book of the Dead. They are: the chikhai bardo, or bardo of the moment of death; the Chonyid bardo, or bardo of experiencing of reality; and the sidpa bardo, or bardo of rebirth. (The Book of the Dead) The Chikhai bardo makes the person ready to meet the very moment of the death. This moment is very important because the moment when vital force leaves the body and last directions if heard in time can help the person to pass the intermediate state correctly. As the Book of the Dead states, â€Å"When the expiration hath ceased, the vital-force will have sunk into the nerve-center of Wisdom and the Knower will be experiencing the Clear Light of the natural condition . Then the vital force, being thrown backwards and flying downwards through the right and left nerves the Intermediate State (Bardo) momentarily dawns.â€Å" (The Book of The Dead) In his commentaries, to The Tibetan Book of the Dead Evans-Wentz explains that â€Å"never centers† mentioned in the book mean psychic centers or cakras and the Center of Wisdom mentioned in the book is located in anahata cakra in the center of the chest. (Evans-Wentz) The Knower mentioned in the same passage stands for the mind in the state of impartial observer. The Chikhai bardo explains the changes in the energetic structure of the body with the coming of death. It doesn’t only describe physical changes, which occur in the body and the way energy leaves the body, but also stresses on the necessity to remain in the state of observer, in order to get the liberation. As Detlef Ingo Lauf states in his commentaries to the Secret Doctrines of the Tibetan Book of Dead â€Å"This is the very content and substance of the state of liberation, if only the soul can recognize it and act in a way to remain in that state.† (Lauf, 254) Special words, repeated several times, must help the dying person to fulfil the main purpose of his pass and help him find the right way in Bardo, where â€Å"wherein all things are like the void and cloudless sky, and the naked, spotless intellect is like unto a transparent vacuum without circumference or centre.† (The Book of the Dead) During the reading lama must change the body position of the dying person in order to create the right flow of energy in the body. The main purpose of all rites and ceremonies, described in The Book of the Dead, is to make the person stay conscious during the very moment of the death. This will enable him to remain conscious in the Bardo, and this way â€Å"From the union of the two states of mind, or consciousness, is born the state of Perfect Enlightenment, Buddhahood. The Dharma-Kaya (Body of Truth) symbolizes the purest and the highest state of being, a state of supramundane consciousness (The Book of the Dead). The person should overcome fear and his own egoistic desires and meet the moment of death pure and full of compassion to all living beings. The Book of Dead states that most of the people fail to remain consciousness at the very moment of the death. This can be explained by the weight of their past karma, fear and selfishness. â€Å"According to the wisdom of Buddha, we can actually use our lives to prepare for death† and that is why this moment is so important ( Ringpoche, 45) In this case they fail to see â€Å"Clear Light of Ultimate Reality† and should pass to the next stage. The Bardo Thodol gradually describes next steps of the process of passing away and stresses on the different opportunities to get liberation on the different stages. Conclusion The main message of The Bardo Thodol is to be conscious at the moment of death. The book describes different techniques used by lama in order to â€Å"awake† the person at the very moment of death or afterwards. At the same time, if we think about our life carefully, we will understand that we approach death with every second of our life; and being conscious in everyday life can be also the way to get liberation. As Sogyal Rinpoche states in The Tibetan Book of Living and Dying: â€Å"In the Buddhist approach, life and death are seen as one whole, where death is the beginning of another chapter of life. Death is a mirror in which the entire meaning of life is reflected.† (Rinpoche, 45) This holistic approach peculiar to Orinatal religions and philosophical systems illustrates their attitude to the death as a natural continuation of life and vice versa. Sources Rinpoche, Sogyal. The Tibetan Book of Living and Dying. San Francisco: Harper Collins, 1992. Sogyal Rinpoche is a Tibetan Teacher. He did a perfect job adapting ancient texts, which compose â€Å"The Book of the Dead† for the modern reader. Original book even with commentaries and comments was very hard to comprehend for the unprepared reader. Sogyal Rinpoche made this text easy to read. At the same time he managed to write his book in such a way that the text did not lose its original meaning and those, who are interested in studying sacred Buddhist text, can read â€Å"The Book of the Dead†, which is one of central texts of Tibetan Buddhism in easy and comprehensive interpretation. The book investigates the topics of death and dying, which are central notions of Buddhism. The author introduces Buddhist concepts of karma, mediation, reincarnation and bardo in interesting and understandable manner. The book also contains practical guideline of dealing with the death. Reading this book transforms one’s attitude to the question of death and to life. Overcoming the fear of death can become that turning point, which changes the whole life, and Rinpoche’s book helps to deal with this fear. The author gives practical advice, which can help both – experienced seekers and people, who only start their acquaintance with Buddhism. The Tibetan Book of the Dead: or, The After-Death Experiences on the Bardo Plane, according to Lama Kazi Dawa-Samdups English Rendering. Ed. W. Y. Evans-Wentz, Oxford University Press, 1949 This book gives Buddhist vision of the process of death and dying. This book teaches not only the process of dying, it also centers on the process of living and uncovers new levels of meaning of our earthy existence. The text produced in this addition is Lama Kazi Dawa Sammdup’s interpretation of the Bardo Thodol edited by the famous specialist in this field and first translator of this book to English Evans-Wentz. Their creative tandem gave birth to new interpretation of classical text. Commentaries of C.G. Jung, the representative of the New School† psychology helps Western people to get prepared for dealing with such complicated issues as death and dying, which is a very difficult topic for Westerners. Introduction written by Lama Anagarika Govinda, a modern religious authority, helps to understand the ancient texts. All those, who contributed to this book, made a great job by making an ancient Orintal wisdom understandable for western audience. General information about Buddhism, which makes the third part, can be useful for those, who want to penetrate deeper into this religious teaching. Comments and commentaries presented in the book make it not only ancient classics, but also a comprehensive book about self-improvement and coming in terms with your life. Detlef Ingo Lauf. Secret Doctrines of the Tibetan Books of the Dead. (Trans. by Graham Parkes) Boston: Shambhala Publications, 1989. Detlef Lauf is a famous German religious scholar and Tibetologist. In his â€Å"Secret Doctrines of the Tibetan Books of the Dead† he provides his own commentaries about the famous text. He introduces different variants of The Book of the Dead and uncovers their deep symbolism. Religious concepts are supplemented by historical information, which makes their comprehension easier. The book written by Detlef Ingo Lauf is a necessary addition to the information, presented in the Tibetan Book of the Dead. The book is a deep survey of Buddhist and pre-Buddhist relations’ teachings, which attributed to the Buddhist concepts of death and dying. The author makes a research of the different deities, Buddhist doctrines and principles created a necessary basis for the right understanding of the classical texts of the Bardo Thodol or the Book of the Dead. The author goes even further and compares the concepts of death discovered in the Book of the Dead with views on death applied in different religious doctrines of Rome, Greece, Eqypt, India and Persia. Information about the death and dying received by modern Western scholars help to understand the basic ideas of the book. References 1. Evans-Wentz, W.Y. (ed.) The Tibetan Book of the Dead. London/Oxford/New York; Oxford University 1960. (Trans. by Graham Parkes) Boston: Shambhala Publications, 1989. 2. The Tibetan Book of the Dead: or, The After-Death Experiences on the Bardo Plane, according to Lama Kazi Dawa-Samdups English Rendering. Ed. W. Y. Evans-Wentz, Oxford University Press, 1949 3. Rinpoche, Sogyal. The Tibetan Book of Living and Dying. San Francisco: Harper Collins, 1992. 4. The Tibetan Book of the Dead: The Great Liberation Through Hearing in the Bardo. By Guru Rinpoche according to Karma-Lingpa. (Translated Francesca Fremantle, Chogyam Trungpa). Boston and London: Shambhala Pocket Classics, 1992. 4. Detlef Ingo Lauf. Secret Doctrines of the Tibetan Books of the Dead.

Customer Awareness Toward Islamic Accounting Theory

Customer Awareness Toward Islamic Accounting Theory CHAPTER 1: INTRODUCTION 1.1 BACKGROUND OF THE STUDY Islamic banks considered as an active player in the world economies over two decades ago (Ahmed S., 2009). The principles accounting upon which Islamic banking is based have been universally accepted for centuries rather than decades. The fundamental principle of Islamic financial institutions is the prohibition of Riba (interest). It is manifest that Islamic accounting theory were practiced mainly in the Islamic country throughout the middle ages, development trade and business activities. In order to understand what services that Islamic banks offer, it is essential to maintain an acceptable level of information of the basis behind it. It has been argued that the Islamic banks have not introduced any new services since their first existence in the 1970s, in fact they have tried to comply with the rules of the Islamic religion specified for these types of actions. High requests to assess Muslim customers perception and attitude toward Islamic bank services. Islamic banks understand that its paramount important to measure the degree of its customers awareness as well as to improve services. The financial institution follows the rules that Holy Quran and hadith have set to guide the Muslims in their financial matters. The Islamic financial system employs the idea of participation in the project, utilizing the funds at threat on a profit-and- loss-distribution basis (Ahmed, S., 2009). 1.2 STATEMENT OF THE PROBLEM During the last three decades, Islamic finance institutions have been rising significantly, both nationally and internationally (Ahmed, S., 2009; Iqbal Abbas, 2007). These firms were recognized in the emerging market of the Middle East to meet the order of investors and borrowers who are motivated by income maximization derived from the Islamic law (Sharia). Islamic finance institutions offer an extensive range of Islamic financial innovations from the simple agreement of profit-sharing agreement (Mudaraba) that is parallel to time deposit in conservative banks, to issue Islamic bonds (Sukuk) and derivatives. In gulf countries, the state of Kuwait banking industry considered on of the leaders in Islamic financial market. The growth of Islamic finance institutions in Kuwait has attracted some of the conventional financial firms (e.g., NBK IFIH, and Citibank) to add the service of Islamic windows to their clients. In spite of the advantages that are fixed in Islamic finance system and management, Islamic finance institutions encounter numerous primary challenges to the prospect of being recognized internationally. The challenges exist in local as well as global markets. On of these challenges is to assess the degree of awareness in Islamic accounting theories. In their study, Gerrard and Cunningham (1997) reported that Muslim respondents, though aware of basic conditions in Islam, were almost wholly ignorant of the sense of specific Islamic financial conditions like Mudaraba, Musharaka and Ijara. As result, many Islamic financial providers seek to assess the level of social awareness of their tools that incorporate with Sharia. The understanding of customer degree of awareness are paramount important to determine firms endowment to promote Islamic accounting theories. Bankers also seek to explore the reasons behind dealing with Islamic banks to better understand and improve services provided. Another challenge that faces Islamic financial institutions is that, as service provided they have to understand customers perceptions and attitude toward the services provided to better understand customers need, want, and improve their services. With no understanding to customer perceptions and attitude Islamic banks may have no means to better develop their services and improve customer satisfaction and compete in the local as well as the international market. The current study seeks to assess the level of customers awareness of Islamic accounting theories and to explore their perceptions and attitude toward these tools that incorporate with Sharia. 1.3 OBJECTIVES OF THE STUDY Islamic financing is an important area of contemporary academic and policy interest. Opposing views in the area are analyzed in the light of empirical evidence. Measuring the degree of customer awareness toward Islamic accounting theory and their perception and attitude toward Islamic tools will shape the future of Islamic financing. The current study attempts to reveals the degree of customers awareness toward Islamic and efforts bestows to improve their awareness in order to assist Islamic financial institution to determine the efforts needed to raise this awareness and improve their attitude and perceptions. Another objective of this study is to explore customers perceptive and perception toward Islamic transactions thus Islamic financial institutions can better understand their customers and improve services provided. 1.4 SIGNIFICANCE OF THE STUDY Islamic banks provide many financial services and are competing heavily in the Middle East with conventional banks. Customers nowadays go for Islamic bank loans for buying home, cars and even business setup, as the conditions are very clear and there are no rising interest piling up. To overcome the fierce competition, Islamic bank need to bestow efforts in rising the degree of awareness toward Islamic accounting and finical tools and improve customers perception and attitude. The study is of general theoretical importance as well as of particular practical significance for policy makers who intend to conform their existing financial systems to Islamic rules. Furthermore, at the practical level, the study aims to assist Islamic bank manager in providing empirically evidence how of Kuwaiti customers aware toward Islamic accounting theory and Islamic financial services. The study also provide framework for bank managers in measuring customers perception and attitude toward Islamic services and their usage of various products and services offered. At the theoretical level, the current study aims to develop the literature of Islamic accounting theory and explain how these theories are to be implemented in the Islamic financial institution who adapts Sharia. 1.5 THE SETTING OF THE STUDY In the Gulf Co-operation Council there are growing number of Islamic banks are also taking steps towards greater clearness and stronger authority structures. The state of Kuwait for example, has been taking a number of steps to reinforce its local Sharia-obedient institutions, including slowly moving in the direction of a latest regulatory framework for sukuk. In conversations with OBG, manufacturing insiders explained that due to a lack of suitable legal mechanisms, Islamic finance companies are not allowed to issue sukuk in Kuwait, which forces Kuwaiti companies to work through other markets, such as Bahrain. Given the massive increase in sukuk issuance worldwide, pegged at nearly $17 billion (in the Gulf alone, the growth rate since 2001 has been nearly 45%), Kuwaits financiers are keenly aware of the need for proper rules regulating sukuk. Sheikh Salem Abdulaziz Al Sabah, the governor of the Central Bank of Kuwait (CBK), said earlier of 2008 that regulations are wanted, saying that the CBK is keen to provide a legal system to regulate Islamic investment tools such as the issuance of sukuk, especially in light of growing demand. We are optimistic a solution will soon be found. In state of Kuwait, the Islamic financial sector and its sharia-compliant companies are the increasingly global. Kuwait Finance house Bank (KFH), as an example, in addition to its Turkey, Malaysia and Bahrain ventures, newly established a subsidiary with a pair of Chinese firms to discover real estate investments in the Chongqing region of a middle China. In a more high-profile move, Investment Dar, one of Kuwaits biggest Islamic investment companies, recently funded a takeover of British luxury carmaker Aston Martin to the tune of $925 million. To achieve the purpose of the current study, the study focuses on a specific Islamic bank that located in the state of Kuwait. KFH has usually been one of the main engines behind the growth of Kuwaits sharia-acquiescent financial market; however, its enlargement and development indicates a growing maturity in Kuwaits sharia-compliant services zone, established by the push toward the regulation of Islamic bonds (sukuk) and the emergence of ever-stronger Islamic investment firms. KFH was the first Islamic bank in Kuwait and one of the pioneers toward adapting of Islamic accounting and financial theory in the gulf region. Beside the convenience, the research believe that exploring the degree of Islamic accounting theories of this bank may reveals highly reliable evidence of generalizing the finding in the state of Kuwait. KFH considered the main Islamic bank in Kuwait and the second-main bank of any kind in the country. Also to the huge injection of capital, KFH lately unveiled plans to set up its own subsidiary in Amman. The expansion of Islamic banks operations at home and overseas underlines the growing development of Kuwaits Islamic financial sector. Thus the study believe that investigating the customers awareness of Islamic banks toward Islamic accounting theory are justified and understanding their perception and attitude toward KFH is paramount important in attempting to improve service quality of Islamic firms. 1.6 LIMITATIONS OF THE STUDY This study is concerns with Islamic banking that located in the state of Kuwait as its difficult to include all Islamic banks related to resource limitation and time restriction. The study also does not analyze all Islamic accounting theory as it is very vast subject to control, rather than focusing on basic Islamic accounting theory that adopted by Islamic financial institutions and banks. Other limitation could be found related to: Sample size: The sample size for the bank customer is very large. Therefore, the collection of customer feedback will be costly in term of time and money. The study aims to attain around (150) survey for the purpose of analysis, which may considered one of the study limitation. Data collection: It may be difficult to distribute and collect all data and forms since the study is targeting to collect feedback from the entire bank customers. 1.7 DEFINITION OF TERMS The current study includes many Islamic terms and concepts that will be stated as in Arabic meaning, some of these concepts are: Halal: The actions or items that Muslims can have access to. Haram: The actions or items that Muslims are banned from Riba: What is known in the west as the interest. Maysir: It means Games of chance such as lottery, gambling and it is usually referred to as Haram. Takaful: It is a form of insurance in the Islamic religion which will be explained in the essay. Gharar: Deception, hazard, speculation, uncertainty, risk (literally, peril or hazard) Mudaraba: Is a trustee financing contract, where one party, the financier, entrusts funds to the other party, the entrepreneur, for undertaking an activity Mushakara: It is an equity participation contract, whereby two or more partners contribute with funds to carry out an investment Muqarada: Loan Participation Qard Hassan: It is a benevolent loan (interest free) Sharia: It is Islamic religious law derived from the Holy Quran and the Sunnah 1.8 THESIS STRUCTURE The current study includes five chapters: chapter one described the background of this study, and consisted of the introduction, objectives and significance of the research. Chapter two reviewed the literatures on Islamic banking and theories. Chapter three explained the research methodology. The data analysis techniques and research findings were demonstrated and discussions in chapter four. Finally, chapter five exhibited conclusions and future recommendation. CHAPTER TWO LITERATURE REVIEW Its necessary to explore the literature of Islamic accounting theory in details in this chapter. This chapter attempts to review previous literatures on the topic of Islamic Accounting Theory and provides recent finding related to the degree of awareness of customers toward Islamic financial services. This chapter attempts provide recent study and articles about Islamic accounting theory that explain the nature of Islamic banks system. Previous literatures and studies have revealed that the first recent research in Islamic banking filed was conducted in Egypt under cover, without projecting an Islamic picture, for fear of being seen as a demonstration of Islamic fundamentalism, which was abhorrence to the political government (Siddiqi l988). These studies remain until l967 where nine Islamic banks open in the country (Ready l98l). These banks was neither charging nor paying interest, investing mainly by participating in trade and industry, directly or in partnership with others, and shared the profits with their depositors (Siddiqi l988). For that reason, Islamic banks functioned basically as saving-investment firms rather than as commercial banks that based on charging interests. The Nasir Social Bank, established in Egypt in l97l, was declared an interest-free commercial bank, although its charter did not refer to Islam or Shariah (Islamic law). Islamic banks appeared on the earth scene as dynamic players over the past two decades. Nevertheless, a lot of the values that based on Islamic banking usually accepted all over the world, for centuries more willingly than decades. The essential principle of Islamic banking is the ban of Riba (interest), while the essential occupant of Islamic banking the prohibition of riba, a word that encompasses not only the perception of usury, but also that of interest has rarely been recognized as appropriate beyond the Islamic world, a lot of its guiding values have. The majority of these values are rooted in simple ethics and general sense, which form the bases of numerous religions, including Islam. Interest or â€Å"Usury† was forbidden in both the Old and New Testaments of the Bible, whereas Shakespeare and many other writers, mainly those writing in the 19th century, have attacked the barbarity of the carry out. Much of the ethics championed by Victorian writers such as Dickens ranging from the fair division of wealth through to mans elementary right to work is obviously present in contemporary Islamic society. Although the western media oftenrecommend that Islamic banking in its current form is a recent occurrence, in fact, the essential practices and principles date back to the early part of the seventh century. (Islamic Finance: A Euromoney Publication, 1997) It is obvious that Islamic finance was accomplished predominantly in the Muslim world during the Middle Ages, encouragement trade and business behavior. In Spain and the Mediterranean and Baltic States, Islamic trades became vital middlemen for trading actions. It is claimed that several concepts, techniques, and tools of Islamic finance were later adopted by European financiers and businessmen. As Islamic finance is intertwined within its religion, the basis of the religion affects the finance in two important ways: Islam aims at building a socio-economic order based on justice and considers economic activity as a means to an end and not an end in itself. It enjoins Muslims to harness natural resources, which are a trust from Allah SWT, for carrying out rightful activities; but abhors exploitation and man-made inequalities of income and wealth (Al-Harran, 1993). Islam is extremely concerned with the problem of financial growth, but treats this as an significant part of a wider problem, that of total human progress. The crucial function of Islam is to lead human growth on right lines and in the right direction. Islamic principle deals with all sides of economic development in the framework of total human development (Al-Harran, 1993). The reinforcement of Islamic banking coincided with the world-wide festivity of the advent of the 15th Century of Islamic calendar (Hijra) in 1976. At the same time financial assets of Muslims mostly those of the oil producing countries, expected a boost due to validation of the oil prices, which had up till now been under the power of foreign oil Corporations. These proceedings led Muslims to struggle to model their lives in agreement with the principles and philosophy of Islam (Abbas Valadkhani, 2004). Islam not only prohibits trade in interest but also in liquor, pork, gambling, pornography and anything else, which the Shariah (Islamic Law) deems Haram (unlawful). Islamic banking is an tool for the progress of an Islamic financial order. Some of the salient features of this order may be summed up as: Islam urges individuals to seek their economic well-being. Islam presents a clear difference between what is Halal (lawful) and what is haram (forbidden) in pursuit of such economic activity. In broad terms, Islam forbids all forms of economic activity, which are morally or socially injurious. This God rule can be considered as a way to systemize the citizens. Islam makes it obligatory on people to spend their wealth judiciously and not to hoard it, keep it idle or to squander it while acknowledging them their right to ownership of wealth legitimately acquired. This can be compared with the communism principles that look for the welfare of the whole members of the society. While allowing an individual to retain any extra capital, Islam look for reducing the edge of the extra for the well-being of the society as a whole, especially the poor and underprivileged sections of society by contribution in the procedure of Zakat. It is the way the Islamic government intervenes to ensure that poor people can have a formal financial source. While making payment for the ways of human nature and yet not yielding to the penalty of its worst propensities, Islam seeks to stop the amassing of wealth in a few hands to the damage of society as a whole, by its laws of inheritance. Viewed as a total, the financial system, which visualized by Islam aims at social justice without inhibiting people project beyond the point where it becomes not only jointly harmful but also individually self-destructive. The Islamic economic system employs the perception of contribution in the enterprise, utilizing the funds at threat on a profit-and- loss-distribution basis. This by no means implies that investments with economic institutions are necessarily tentative. This can be barred by careful investment strategy, diversification of risk and sensible management by Islamic economic institutions. This system supports people to invest their money in those financial institutions to exploit their utilities by making profits under the guidelines of the Shariah. The concept of profit-and-loss sharing, as a basis of financial transactions is a progressive one as it distinguishes good performance from the bad and minimize the players in the market to be the people who know how to invest and when they inter the market to catch the goal. The main goals of an Islamic Banking and Financial system are to: Implement the value system of the Quran and the Sunnah (tradition or practice of Prophet MuhammadSAW) in the realm of the Muslim socio-economic system. Ibn Taymiyahr.a. (n.d.), a distinguished scholar of Islam, explicates this as follows: â€Å"In muamalat (business transactions) all activities are permissible unless forbidden by revelation (Quran) or the practice of Prophet Muhammad SAW†. The examples of prohibited business activities would include dealing in gambling, liquor, pork etc. The financial contracts of Islamic banks need to be clearly documented, equitable and avoid the elements of Riba, Gharar and Maysir as explained in the following section. Foster the growth of the economy of Muslim nations by developing financial markets, institutions and instruments. A well-developed capital market, with efficient institutions offering diverse financial facilities, can reduce the overall cost of capital. It can enhance social welfare by facilitating the acceptance of projects whose; present value of all relevant cash in-flows (benefits) after tax is greater than the present value of all cash out-flows (cost) of the project; or the expected internal rate of return is greater than a minimum threshold rate (or cost of capital). Furthermore, these necessary conditions should also be satisfied for each party financing the project to alleviate agency effects. This entails economic development, which is promoted in Islam, as Prophet Muhammad SAW exhorted Muslims to undertake business ventures (tijarah) as described in the following hadith Nuaym ibn Abd Al-Rahman has quoted the (narration). ProphetSAW as saying: â€Å"Nine tenths of earnings (Rizq) is in bai (business ventures), and tenth in cattle†. This was reported by Ibrahim Al-Harbi (Al-Iraqi, 1992) and by Said ibn Mansur (Al-Suyuti, 1990). Dampen the shocks of extreme economic output by promoting risk-sharing instruments whose payoffs are strictly contingent on the profitability of a firm or project at a micro level. Financial facilities with fixed costs can severely strain the resources of borrowers during a slowdown, which lead to bankruptcies and structural impairment of the economy. The gist of Islamic financial securitization is summarized by the following well-known hadith quoted by Kahf and Khan (1992), â€Å"Al-kharaj bi al daman.† This implies that entitlement of return from assets vests in the one bearing the risk of it. 2.1 CONVENTIONAL BANKING The main job for most of non-Muslim or conventional banks is preserved money and valuables and give loans, credit, and imbursement services, for example checking accounts, money orders, and cashiers checks. These banks furthermore may propose investment and insurance products, which they were once banned from selling. As a diversity of models for collaboration and integration amongst finance industries have appeared, some of the conventional distinctions among banks, insurance companies, and securities firms have reduced. Regardless of these changes, banks continue to preserve and carry out their main role—allowing deposits and lending funds from these deposits. There are several kinds of banks, which vary in the number of services they offer and the customers they serve. Although some of the distinctions among these kinds of banks have tapering as they begin to enlarge the vary of products and services they propose, there are still key distinctive behaviors. Commercial banks, which control this industry, provide a full variety of services for customers, enterprise, and governments. These banks come in a broad range of sizes, from large international banks to local and community banks. International banks are involved in global lending and foreign cash trading, additionally to the more typical banking services. However, a lot of commercial banks have also extended to present online banking, and some previously Internet-only banks are opting to release branches. Savings banks and savings and loan associations, occasionally called thrift institutions, are the second biggest group of depository institutions. They were first recognized as community-based firms to finance mortgages for people to purchase homes and still cater mostly to the savings and lending requirements of individuals. Credit unions are another type of depository institution. Most credit unions are created by people with a familiar bond, for instance those who work for the similar company or be a member of the same labor union or church. Members pond their savings and, when they require money, they may borrow from the credit union, frequently at a minor interest rate than that demanded by other financial institutions. Federal preserve banks are Government agencies that achieve numerous financial services for the Government. Their chief tasks are to control the banking industry and to aid implement our Nations financial policy so our economy can run more proficiently by directing the Nations money provide—the total amount of money in the country, including cash and bank deposits. Interest on loans is the main source of income for most banks, making their diverse lending departments critical to their achievement. The commercial lending department loans money to companies to start or enlarge a business or to buy inventory and capital tools. The customer lending department handles student loans, credit cards, and loans for home developments, debt consolidation, and automobile purchases. Finally, the mortgage lending department loans money to individuals and businesses to buy real estate. The money to loan comes mainly from deposits in checking and reserving accounts, certificates of deposit, money market accounts, and other deposit accounts that clients and businesses arrangement with the bank. These deposits often make interest for the owner, and accounts that offer checking supply an easy technique for creation payments safely without using cash. Technology is having a main impact on the banking industry. such as, many usual bank services that once needed a teller, for example making a withdrawal or deposit, are now existing through ATMs that let people to right of entry their accounts 24 hours a day. In addition, direct deposit permits companies and governments to electronically transfer payments into different accounts. Also, debit cards, which may also apply as ATM cards, immediately deduct money from an account when the card is swiped across a machine at a stores cash register. Electronic banking by phone or computer permits consumers to pay invoices and shift money from one account to another. Through these channels, bank customers can too admission information such as account balances and statement history. Some banks have started offering online account aggregation, which makes accessible in one place detailed and up-to date information on a clients accounts held at diverse institutions. Progressions in technology have also led to upgrading in the ways in which banks process information. Use of check imaging, which lets banks to store photographed checks on the computer, is one such example that has been applied by some banks. Other kinds of technology have deeply impacted the lending side of banking. such as, the availability and increasing use of credit scoring software lets loans to be accepted in minutes, rather than days, making lending departments more competent. Other basic changes are taking place in the industry as banks vary their services to become more competitive. A lot of banks at the present offer their clients financial planning and asset management services, as well as brokerage and insurance services, frequently throughout a subsidiary or third party. Others are starting to offer investment banking services that assist companies and governments increase money during the issuance of stocks and bonds, also usually during a subsidiary. As banks reply to deregulation and as competition in this sector raises, the nature of the banking industry will continue to undertake considerable change. 2.2 COMPETITIVENESS OF THE ISLAMIC BANKING INDUSTRY The crucial feature of Islamic banking is that it is interest-free. Although it is frequently claimed that there is more to Islamic banking, for example contributions towards a more fair distribution of income and wealth, and improved equity contribution in the economy (Chapra l982), it nevertheless obtains its specific rationale from the fact that there is no place for the institution of interest in the Islamic order. Islam forbids Muslims from taking or giving interest (riba) in spite of of the reason for which such loans are made and despite of the rates at which interest is exciting. To be certain, there have been efforts to differentiate between usury and interest and between loans for consumption and for production. It has also been argued that riba refers to usury accomplished by minor money-lenders and not to interest charged by contemporary banks and that no riba is occupied when interest is compulsory on productive loans, but these arguments have not won approval. Apart from a few disagreeing opinions, he general agreement among Muslim scholars obviously is that there is no variation between riba and interest. In what follows, these two terms are used interchangeably. The forbidden of riba is mentioned in four different revelations in the Quran. The first revelation highlights that interest removes wealth of Gods blessings. The second revelation condemns it, placing interest in combination with illegal appropriation of property belonging to others. The third revelation enjoins Muslims to keep on clear of interest for the sake of their own welfare. The fourth revelation set up a clear difference between interest and trade, influencing Muslims to take only the principal sum and to forgo even this sum if the borrower is not capable to repay. It is further declared in the Quran that those who ignored the forbidden of interest are at war with God and His Prophet. The forbidden of interest is furthermore cited in no unsure terms in the Hadith (sayings of the Prophet). The Prophet warned not only those who take interest but also those who offer interest and those who record or witness the operation, saying that they are all similar in guilt. It may be mentioned in passing that similar prohibition are to be found in the pre-Quranic scriptures, although the People of the Book, as the Quran refers to them, had chosen to rationalize them. It is remarkable that Islam has successfully warded off various subsequent rationalization efforts aimed at legitimizing the institution of interest. Some scholars relays on economic reasons to explain the reasons on why interest is prohibited in Islam. scholars argued that interest is a pre- determined cost of production, which avoid full employment (Khan l968; Ahmad n.d.; Mannan l970). In the same tone, it has been challenged that international monetary crises are largely due to the institution of interest (Khan, n.d), and that trade cycles are in no small measure attributable to the phenomenon of interest (Ahmad l952; Suud n.d.). None of these studies, however, has really succeeded in creating a causal link between interest, on the one hand, and employment and trade cycles, on the other. Others, anxious to maintain the Islamic position on interest, have argued that interest is not very effective as a monetary policy instrument even in capitalist economies and have questioned the efficiency of the rate of interest as a determinant of saving and investment (Ariff l982). A general line running through all these negotiations is the exploitative character of the institution of interest, although some have pointed out that profit (which is legalized in Islam) can also be exploitative. One response to this is that one must differentiate between profit and profiteering, and Islam has prohibited the latter as well. It began as a theological dream, but Islamic banking has become a practical reality across the Middle East. The question now is, how far will Sharia boards and western regulators let it spread? (Josh Martin, Middle East, Jun2005 Issue 357, p50, 6p) The Islamic prohibition on interest does not imply that capital is costless in an Islamic system. Islam realizes that money is a factor of production however; it does not permit the factor to pre-determined claim on the productive surplus in the form of interest. This has leaded to the question as to what will then substitute the interest rate mechanism in an Islamic framework. There have been propositions that profit sharing can be a viable alternative (Ka Customer Awareness Toward Islamic Accounting Theory Customer Awareness Toward Islamic Accounting Theory CHAPTER 1: INTRODUCTION 1.1 BACKGROUND OF THE STUDY Islamic banks considered as an active player in the world economies over two decades ago (Ahmed S., 2009). The principles accounting upon which Islamic banking is based have been universally accepted for centuries rather than decades. The fundamental principle of Islamic financial institutions is the prohibition of Riba (interest). It is manifest that Islamic accounting theory were practiced mainly in the Islamic country throughout the middle ages, development trade and business activities. In order to understand what services that Islamic banks offer, it is essential to maintain an acceptable level of information of the basis behind it. It has been argued that the Islamic banks have not introduced any new services since their first existence in the 1970s, in fact they have tried to comply with the rules of the Islamic religion specified for these types of actions. High requests to assess Muslim customers perception and attitude toward Islamic bank services. Islamic banks understand that its paramount important to measure the degree of its customers awareness as well as to improve services. The financial institution follows the rules that Holy Quran and hadith have set to guide the Muslims in their financial matters. The Islamic financial system employs the idea of participation in the project, utilizing the funds at threat on a profit-and- loss-distribution basis (Ahmed, S., 2009). 1.2 STATEMENT OF THE PROBLEM During the last three decades, Islamic finance institutions have been rising significantly, both nationally and internationally (Ahmed, S., 2009; Iqbal Abbas, 2007). These firms were recognized in the emerging market of the Middle East to meet the order of investors and borrowers who are motivated by income maximization derived from the Islamic law (Sharia). Islamic finance institutions offer an extensive range of Islamic financial innovations from the simple agreement of profit-sharing agreement (Mudaraba) that is parallel to time deposit in conservative banks, to issue Islamic bonds (Sukuk) and derivatives. In gulf countries, the state of Kuwait banking industry considered on of the leaders in Islamic financial market. The growth of Islamic finance institutions in Kuwait has attracted some of the conventional financial firms (e.g., NBK IFIH, and Citibank) to add the service of Islamic windows to their clients. In spite of the advantages that are fixed in Islamic finance system and management, Islamic finance institutions encounter numerous primary challenges to the prospect of being recognized internationally. The challenges exist in local as well as global markets. On of these challenges is to assess the degree of awareness in Islamic accounting theories. In their study, Gerrard and Cunningham (1997) reported that Muslim respondents, though aware of basic conditions in Islam, were almost wholly ignorant of the sense of specific Islamic financial conditions like Mudaraba, Musharaka and Ijara. As result, many Islamic financial providers seek to assess the level of social awareness of their tools that incorporate with Sharia. The understanding of customer degree of awareness are paramount important to determine firms endowment to promote Islamic accounting theories. Bankers also seek to explore the reasons behind dealing with Islamic banks to better understand and improve services provided. Another challenge that faces Islamic financial institutions is that, as service provided they have to understand customers perceptions and attitude toward the services provided to better understand customers need, want, and improve their services. With no understanding to customer perceptions and attitude Islamic banks may have no means to better develop their services and improve customer satisfaction and compete in the local as well as the international market. The current study seeks to assess the level of customers awareness of Islamic accounting theories and to explore their perceptions and attitude toward these tools that incorporate with Sharia. 1.3 OBJECTIVES OF THE STUDY Islamic financing is an important area of contemporary academic and policy interest. Opposing views in the area are analyzed in the light of empirical evidence. Measuring the degree of customer awareness toward Islamic accounting theory and their perception and attitude toward Islamic tools will shape the future of Islamic financing. The current study attempts to reveals the degree of customers awareness toward Islamic and efforts bestows to improve their awareness in order to assist Islamic financial institution to determine the efforts needed to raise this awareness and improve their attitude and perceptions. Another objective of this study is to explore customers perceptive and perception toward Islamic transactions thus Islamic financial institutions can better understand their customers and improve services provided. 1.4 SIGNIFICANCE OF THE STUDY Islamic banks provide many financial services and are competing heavily in the Middle East with conventional banks. Customers nowadays go for Islamic bank loans for buying home, cars and even business setup, as the conditions are very clear and there are no rising interest piling up. To overcome the fierce competition, Islamic bank need to bestow efforts in rising the degree of awareness toward Islamic accounting and finical tools and improve customers perception and attitude. The study is of general theoretical importance as well as of particular practical significance for policy makers who intend to conform their existing financial systems to Islamic rules. Furthermore, at the practical level, the study aims to assist Islamic bank manager in providing empirically evidence how of Kuwaiti customers aware toward Islamic accounting theory and Islamic financial services. The study also provide framework for bank managers in measuring customers perception and attitude toward Islamic services and their usage of various products and services offered. At the theoretical level, the current study aims to develop the literature of Islamic accounting theory and explain how these theories are to be implemented in the Islamic financial institution who adapts Sharia. 1.5 THE SETTING OF THE STUDY In the Gulf Co-operation Council there are growing number of Islamic banks are also taking steps towards greater clearness and stronger authority structures. The state of Kuwait for example, has been taking a number of steps to reinforce its local Sharia-obedient institutions, including slowly moving in the direction of a latest regulatory framework for sukuk. In conversations with OBG, manufacturing insiders explained that due to a lack of suitable legal mechanisms, Islamic finance companies are not allowed to issue sukuk in Kuwait, which forces Kuwaiti companies to work through other markets, such as Bahrain. Given the massive increase in sukuk issuance worldwide, pegged at nearly $17 billion (in the Gulf alone, the growth rate since 2001 has been nearly 45%), Kuwaits financiers are keenly aware of the need for proper rules regulating sukuk. Sheikh Salem Abdulaziz Al Sabah, the governor of the Central Bank of Kuwait (CBK), said earlier of 2008 that regulations are wanted, saying that the CBK is keen to provide a legal system to regulate Islamic investment tools such as the issuance of sukuk, especially in light of growing demand. We are optimistic a solution will soon be found. In state of Kuwait, the Islamic financial sector and its sharia-compliant companies are the increasingly global. Kuwait Finance house Bank (KFH), as an example, in addition to its Turkey, Malaysia and Bahrain ventures, newly established a subsidiary with a pair of Chinese firms to discover real estate investments in the Chongqing region of a middle China. In a more high-profile move, Investment Dar, one of Kuwaits biggest Islamic investment companies, recently funded a takeover of British luxury carmaker Aston Martin to the tune of $925 million. To achieve the purpose of the current study, the study focuses on a specific Islamic bank that located in the state of Kuwait. KFH has usually been one of the main engines behind the growth of Kuwaits sharia-acquiescent financial market; however, its enlargement and development indicates a growing maturity in Kuwaits sharia-compliant services zone, established by the push toward the regulation of Islamic bonds (sukuk) and the emergence of ever-stronger Islamic investment firms. KFH was the first Islamic bank in Kuwait and one of the pioneers toward adapting of Islamic accounting and financial theory in the gulf region. Beside the convenience, the research believe that exploring the degree of Islamic accounting theories of this bank may reveals highly reliable evidence of generalizing the finding in the state of Kuwait. KFH considered the main Islamic bank in Kuwait and the second-main bank of any kind in the country. Also to the huge injection of capital, KFH lately unveiled plans to set up its own subsidiary in Amman. The expansion of Islamic banks operations at home and overseas underlines the growing development of Kuwaits Islamic financial sector. Thus the study believe that investigating the customers awareness of Islamic banks toward Islamic accounting theory are justified and understanding their perception and attitude toward KFH is paramount important in attempting to improve service quality of Islamic firms. 1.6 LIMITATIONS OF THE STUDY This study is concerns with Islamic banking that located in the state of Kuwait as its difficult to include all Islamic banks related to resource limitation and time restriction. The study also does not analyze all Islamic accounting theory as it is very vast subject to control, rather than focusing on basic Islamic accounting theory that adopted by Islamic financial institutions and banks. Other limitation could be found related to: Sample size: The sample size for the bank customer is very large. Therefore, the collection of customer feedback will be costly in term of time and money. The study aims to attain around (150) survey for the purpose of analysis, which may considered one of the study limitation. Data collection: It may be difficult to distribute and collect all data and forms since the study is targeting to collect feedback from the entire bank customers. 1.7 DEFINITION OF TERMS The current study includes many Islamic terms and concepts that will be stated as in Arabic meaning, some of these concepts are: Halal: The actions or items that Muslims can have access to. Haram: The actions or items that Muslims are banned from Riba: What is known in the west as the interest. Maysir: It means Games of chance such as lottery, gambling and it is usually referred to as Haram. Takaful: It is a form of insurance in the Islamic religion which will be explained in the essay. Gharar: Deception, hazard, speculation, uncertainty, risk (literally, peril or hazard) Mudaraba: Is a trustee financing contract, where one party, the financier, entrusts funds to the other party, the entrepreneur, for undertaking an activity Mushakara: It is an equity participation contract, whereby two or more partners contribute with funds to carry out an investment Muqarada: Loan Participation Qard Hassan: It is a benevolent loan (interest free) Sharia: It is Islamic religious law derived from the Holy Quran and the Sunnah 1.8 THESIS STRUCTURE The current study includes five chapters: chapter one described the background of this study, and consisted of the introduction, objectives and significance of the research. Chapter two reviewed the literatures on Islamic banking and theories. Chapter three explained the research methodology. The data analysis techniques and research findings were demonstrated and discussions in chapter four. Finally, chapter five exhibited conclusions and future recommendation. CHAPTER TWO LITERATURE REVIEW Its necessary to explore the literature of Islamic accounting theory in details in this chapter. This chapter attempts to review previous literatures on the topic of Islamic Accounting Theory and provides recent finding related to the degree of awareness of customers toward Islamic financial services. This chapter attempts provide recent study and articles about Islamic accounting theory that explain the nature of Islamic banks system. Previous literatures and studies have revealed that the first recent research in Islamic banking filed was conducted in Egypt under cover, without projecting an Islamic picture, for fear of being seen as a demonstration of Islamic fundamentalism, which was abhorrence to the political government (Siddiqi l988). These studies remain until l967 where nine Islamic banks open in the country (Ready l98l). These banks was neither charging nor paying interest, investing mainly by participating in trade and industry, directly or in partnership with others, and shared the profits with their depositors (Siddiqi l988). For that reason, Islamic banks functioned basically as saving-investment firms rather than as commercial banks that based on charging interests. The Nasir Social Bank, established in Egypt in l97l, was declared an interest-free commercial bank, although its charter did not refer to Islam or Shariah (Islamic law). Islamic banks appeared on the earth scene as dynamic players over the past two decades. Nevertheless, a lot of the values that based on Islamic banking usually accepted all over the world, for centuries more willingly than decades. The essential principle of Islamic banking is the ban of Riba (interest), while the essential occupant of Islamic banking the prohibition of riba, a word that encompasses not only the perception of usury, but also that of interest has rarely been recognized as appropriate beyond the Islamic world, a lot of its guiding values have. The majority of these values are rooted in simple ethics and general sense, which form the bases of numerous religions, including Islam. Interest or â€Å"Usury† was forbidden in both the Old and New Testaments of the Bible, whereas Shakespeare and many other writers, mainly those writing in the 19th century, have attacked the barbarity of the carry out. Much of the ethics championed by Victorian writers such as Dickens ranging from the fair division of wealth through to mans elementary right to work is obviously present in contemporary Islamic society. Although the western media oftenrecommend that Islamic banking in its current form is a recent occurrence, in fact, the essential practices and principles date back to the early part of the seventh century. (Islamic Finance: A Euromoney Publication, 1997) It is obvious that Islamic finance was accomplished predominantly in the Muslim world during the Middle Ages, encouragement trade and business behavior. In Spain and the Mediterranean and Baltic States, Islamic trades became vital middlemen for trading actions. It is claimed that several concepts, techniques, and tools of Islamic finance were later adopted by European financiers and businessmen. As Islamic finance is intertwined within its religion, the basis of the religion affects the finance in two important ways: Islam aims at building a socio-economic order based on justice and considers economic activity as a means to an end and not an end in itself. It enjoins Muslims to harness natural resources, which are a trust from Allah SWT, for carrying out rightful activities; but abhors exploitation and man-made inequalities of income and wealth (Al-Harran, 1993). Islam is extremely concerned with the problem of financial growth, but treats this as an significant part of a wider problem, that of total human progress. The crucial function of Islam is to lead human growth on right lines and in the right direction. Islamic principle deals with all sides of economic development in the framework of total human development (Al-Harran, 1993). The reinforcement of Islamic banking coincided with the world-wide festivity of the advent of the 15th Century of Islamic calendar (Hijra) in 1976. At the same time financial assets of Muslims mostly those of the oil producing countries, expected a boost due to validation of the oil prices, which had up till now been under the power of foreign oil Corporations. These proceedings led Muslims to struggle to model their lives in agreement with the principles and philosophy of Islam (Abbas Valadkhani, 2004). Islam not only prohibits trade in interest but also in liquor, pork, gambling, pornography and anything else, which the Shariah (Islamic Law) deems Haram (unlawful). Islamic banking is an tool for the progress of an Islamic financial order. Some of the salient features of this order may be summed up as: Islam urges individuals to seek their economic well-being. Islam presents a clear difference between what is Halal (lawful) and what is haram (forbidden) in pursuit of such economic activity. In broad terms, Islam forbids all forms of economic activity, which are morally or socially injurious. This God rule can be considered as a way to systemize the citizens. Islam makes it obligatory on people to spend their wealth judiciously and not to hoard it, keep it idle or to squander it while acknowledging them their right to ownership of wealth legitimately acquired. This can be compared with the communism principles that look for the welfare of the whole members of the society. While allowing an individual to retain any extra capital, Islam look for reducing the edge of the extra for the well-being of the society as a whole, especially the poor and underprivileged sections of society by contribution in the procedure of Zakat. It is the way the Islamic government intervenes to ensure that poor people can have a formal financial source. While making payment for the ways of human nature and yet not yielding to the penalty of its worst propensities, Islam seeks to stop the amassing of wealth in a few hands to the damage of society as a whole, by its laws of inheritance. Viewed as a total, the financial system, which visualized by Islam aims at social justice without inhibiting people project beyond the point where it becomes not only jointly harmful but also individually self-destructive. The Islamic economic system employs the perception of contribution in the enterprise, utilizing the funds at threat on a profit-and- loss-distribution basis. This by no means implies that investments with economic institutions are necessarily tentative. This can be barred by careful investment strategy, diversification of risk and sensible management by Islamic economic institutions. This system supports people to invest their money in those financial institutions to exploit their utilities by making profits under the guidelines of the Shariah. The concept of profit-and-loss sharing, as a basis of financial transactions is a progressive one as it distinguishes good performance from the bad and minimize the players in the market to be the people who know how to invest and when they inter the market to catch the goal. The main goals of an Islamic Banking and Financial system are to: Implement the value system of the Quran and the Sunnah (tradition or practice of Prophet MuhammadSAW) in the realm of the Muslim socio-economic system. Ibn Taymiyahr.a. (n.d.), a distinguished scholar of Islam, explicates this as follows: â€Å"In muamalat (business transactions) all activities are permissible unless forbidden by revelation (Quran) or the practice of Prophet Muhammad SAW†. The examples of prohibited business activities would include dealing in gambling, liquor, pork etc. The financial contracts of Islamic banks need to be clearly documented, equitable and avoid the elements of Riba, Gharar and Maysir as explained in the following section. Foster the growth of the economy of Muslim nations by developing financial markets, institutions and instruments. A well-developed capital market, with efficient institutions offering diverse financial facilities, can reduce the overall cost of capital. It can enhance social welfare by facilitating the acceptance of projects whose; present value of all relevant cash in-flows (benefits) after tax is greater than the present value of all cash out-flows (cost) of the project; or the expected internal rate of return is greater than a minimum threshold rate (or cost of capital). Furthermore, these necessary conditions should also be satisfied for each party financing the project to alleviate agency effects. This entails economic development, which is promoted in Islam, as Prophet Muhammad SAW exhorted Muslims to undertake business ventures (tijarah) as described in the following hadith Nuaym ibn Abd Al-Rahman has quoted the (narration). ProphetSAW as saying: â€Å"Nine tenths of earnings (Rizq) is in bai (business ventures), and tenth in cattle†. This was reported by Ibrahim Al-Harbi (Al-Iraqi, 1992) and by Said ibn Mansur (Al-Suyuti, 1990). Dampen the shocks of extreme economic output by promoting risk-sharing instruments whose payoffs are strictly contingent on the profitability of a firm or project at a micro level. Financial facilities with fixed costs can severely strain the resources of borrowers during a slowdown, which lead to bankruptcies and structural impairment of the economy. The gist of Islamic financial securitization is summarized by the following well-known hadith quoted by Kahf and Khan (1992), â€Å"Al-kharaj bi al daman.† This implies that entitlement of return from assets vests in the one bearing the risk of it. 2.1 CONVENTIONAL BANKING The main job for most of non-Muslim or conventional banks is preserved money and valuables and give loans, credit, and imbursement services, for example checking accounts, money orders, and cashiers checks. These banks furthermore may propose investment and insurance products, which they were once banned from selling. As a diversity of models for collaboration and integration amongst finance industries have appeared, some of the conventional distinctions among banks, insurance companies, and securities firms have reduced. Regardless of these changes, banks continue to preserve and carry out their main role—allowing deposits and lending funds from these deposits. There are several kinds of banks, which vary in the number of services they offer and the customers they serve. Although some of the distinctions among these kinds of banks have tapering as they begin to enlarge the vary of products and services they propose, there are still key distinctive behaviors. Commercial banks, which control this industry, provide a full variety of services for customers, enterprise, and governments. These banks come in a broad range of sizes, from large international banks to local and community banks. International banks are involved in global lending and foreign cash trading, additionally to the more typical banking services. However, a lot of commercial banks have also extended to present online banking, and some previously Internet-only banks are opting to release branches. Savings banks and savings and loan associations, occasionally called thrift institutions, are the second biggest group of depository institutions. They were first recognized as community-based firms to finance mortgages for people to purchase homes and still cater mostly to the savings and lending requirements of individuals. Credit unions are another type of depository institution. Most credit unions are created by people with a familiar bond, for instance those who work for the similar company or be a member of the same labor union or church. Members pond their savings and, when they require money, they may borrow from the credit union, frequently at a minor interest rate than that demanded by other financial institutions. Federal preserve banks are Government agencies that achieve numerous financial services for the Government. Their chief tasks are to control the banking industry and to aid implement our Nations financial policy so our economy can run more proficiently by directing the Nations money provide—the total amount of money in the country, including cash and bank deposits. Interest on loans is the main source of income for most banks, making their diverse lending departments critical to their achievement. The commercial lending department loans money to companies to start or enlarge a business or to buy inventory and capital tools. The customer lending department handles student loans, credit cards, and loans for home developments, debt consolidation, and automobile purchases. Finally, the mortgage lending department loans money to individuals and businesses to buy real estate. The money to loan comes mainly from deposits in checking and reserving accounts, certificates of deposit, money market accounts, and other deposit accounts that clients and businesses arrangement with the bank. These deposits often make interest for the owner, and accounts that offer checking supply an easy technique for creation payments safely without using cash. Technology is having a main impact on the banking industry. such as, many usual bank services that once needed a teller, for example making a withdrawal or deposit, are now existing through ATMs that let people to right of entry their accounts 24 hours a day. In addition, direct deposit permits companies and governments to electronically transfer payments into different accounts. Also, debit cards, which may also apply as ATM cards, immediately deduct money from an account when the card is swiped across a machine at a stores cash register. Electronic banking by phone or computer permits consumers to pay invoices and shift money from one account to another. Through these channels, bank customers can too admission information such as account balances and statement history. Some banks have started offering online account aggregation, which makes accessible in one place detailed and up-to date information on a clients accounts held at diverse institutions. Progressions in technology have also led to upgrading in the ways in which banks process information. Use of check imaging, which lets banks to store photographed checks on the computer, is one such example that has been applied by some banks. Other kinds of technology have deeply impacted the lending side of banking. such as, the availability and increasing use of credit scoring software lets loans to be accepted in minutes, rather than days, making lending departments more competent. Other basic changes are taking place in the industry as banks vary their services to become more competitive. A lot of banks at the present offer their clients financial planning and asset management services, as well as brokerage and insurance services, frequently throughout a subsidiary or third party. Others are starting to offer investment banking services that assist companies and governments increase money during the issuance of stocks and bonds, also usually during a subsidiary. As banks reply to deregulation and as competition in this sector raises, the nature of the banking industry will continue to undertake considerable change. 2.2 COMPETITIVENESS OF THE ISLAMIC BANKING INDUSTRY The crucial feature of Islamic banking is that it is interest-free. Although it is frequently claimed that there is more to Islamic banking, for example contributions towards a more fair distribution of income and wealth, and improved equity contribution in the economy (Chapra l982), it nevertheless obtains its specific rationale from the fact that there is no place for the institution of interest in the Islamic order. Islam forbids Muslims from taking or giving interest (riba) in spite of of the reason for which such loans are made and despite of the rates at which interest is exciting. To be certain, there have been efforts to differentiate between usury and interest and between loans for consumption and for production. It has also been argued that riba refers to usury accomplished by minor money-lenders and not to interest charged by contemporary banks and that no riba is occupied when interest is compulsory on productive loans, but these arguments have not won approval. Apart from a few disagreeing opinions, he general agreement among Muslim scholars obviously is that there is no variation between riba and interest. In what follows, these two terms are used interchangeably. The forbidden of riba is mentioned in four different revelations in the Quran. The first revelation highlights that interest removes wealth of Gods blessings. The second revelation condemns it, placing interest in combination with illegal appropriation of property belonging to others. The third revelation enjoins Muslims to keep on clear of interest for the sake of their own welfare. The fourth revelation set up a clear difference between interest and trade, influencing Muslims to take only the principal sum and to forgo even this sum if the borrower is not capable to repay. It is further declared in the Quran that those who ignored the forbidden of interest are at war with God and His Prophet. The forbidden of interest is furthermore cited in no unsure terms in the Hadith (sayings of the Prophet). The Prophet warned not only those who take interest but also those who offer interest and those who record or witness the operation, saying that they are all similar in guilt. It may be mentioned in passing that similar prohibition are to be found in the pre-Quranic scriptures, although the People of the Book, as the Quran refers to them, had chosen to rationalize them. It is remarkable that Islam has successfully warded off various subsequent rationalization efforts aimed at legitimizing the institution of interest. Some scholars relays on economic reasons to explain the reasons on why interest is prohibited in Islam. scholars argued that interest is a pre- determined cost of production, which avoid full employment (Khan l968; Ahmad n.d.; Mannan l970). In the same tone, it has been challenged that international monetary crises are largely due to the institution of interest (Khan, n.d), and that trade cycles are in no small measure attributable to the phenomenon of interest (Ahmad l952; Suud n.d.). None of these studies, however, has really succeeded in creating a causal link between interest, on the one hand, and employment and trade cycles, on the other. Others, anxious to maintain the Islamic position on interest, have argued that interest is not very effective as a monetary policy instrument even in capitalist economies and have questioned the efficiency of the rate of interest as a determinant of saving and investment (Ariff l982). A general line running through all these negotiations is the exploitative character of the institution of interest, although some have pointed out that profit (which is legalized in Islam) can also be exploitative. One response to this is that one must differentiate between profit and profiteering, and Islam has prohibited the latter as well. It began as a theological dream, but Islamic banking has become a practical reality across the Middle East. The question now is, how far will Sharia boards and western regulators let it spread? (Josh Martin, Middle East, Jun2005 Issue 357, p50, 6p) The Islamic prohibition on interest does not imply that capital is costless in an Islamic system. Islam realizes that money is a factor of production however; it does not permit the factor to pre-determined claim on the productive surplus in the form of interest. This has leaded to the question as to what will then substitute the interest rate mechanism in an Islamic framework. There have been propositions that profit sharing can be a viable alternative (Ka