Many Of The Characters In Of Mice And Men Have Dreams Essay

John Steinbeck wrote the novel â€Å"Of Mice and Men† in 1937. The settings were personally related to the author himself. The Novel is set were he originally came from, around Salinas, California. It was written during the great depression which not only effected America, but Europe as well; however the novel only focuses on America. Steinbeck had his reasons for writing about it. He wanted to show the reality of the great depression as it struck everyone in different ways. He used realistic characters that represented the main groups of people living in America and what effects took place according to their status. One of the biggest problems was that twenty-five percent of the whole population was unemployed, leaving a mass of civilians to roam the streets, desperate to survive by any means. Others were forced to become itinerant workers. George and Lennie, the main characters, are two ranch workers. They are prime examples or itinerant workers due to the economic disaster they faced. They had slight difficulties maintaining a job as Lennie has a mental and almost physical disability. His child-like mind didn’t allow him to correspond well with his beastly physicality. This means he is unaware of how brutal and uncivilized his actions may be. It’s what always got him in trouble and George was the one always defending him. All they had was each other. As Itinerant workers they travelled far in search of work as did many others who were desperate to earn enough money to survive or perhaps support their family. They pretty much had no choice if they wanted to live. Work on a ranch did’t always pay well ; however, the workers were provided with the necessities which had already cover a lot of costs such as a roof over their head, cooked meals, bathing facilities, so they were grateful. All those small things are the things that are taken for granted, but to those times they were valued and appreciated. Whatever salaries they received at the end of each month they would send home to their families or spend it all on a cat house (prostitute house) and start all over again. George and Lennie had other plans which differentiated them from the rest. George and Lennie both shared a dream. Besides the fact that their relationship status was quite rare, the dream made it that little bit more special. Most people travelled alone and just had their minds set on surviving. George and Lennie had their hearts set on bigger things. â€Å"We could live off the fatta the lan’,† a quote used constantly by both George and Lennie. They are implying that they want to buy land in which they can live off everything they grow so they won’t have to rely on any one to survive. It’s a big change from working for someone to working for yourself; it’s more satisfying knowing they can do what they want for themselves. â€Å"We’ll have a big vegetable patch and a rabbit-hutch and chickens. And when it rains in the winter, we’ll just say the hell with going to work!† Their dream gets deeper with endless wants; to them it’s almost like an obsessive fantasy. However, their dreams are still realistic compared to a modern day dream which tends to be more selfish and greedy. A sense of freedom is what they are after which is highly understandable and admirable. Lennie also has an obsession with â€Å"tending rabbits†. Again his child-likeliness is getting the better of him; then again all children look forward to particular things they enjoy. Their dream is like a private sanctuary in their minds, an escape from reality, the one thing that no one can take from them. It’s their goal, the one thing that keeps them motivated to carry on. â€Å"Come on, George. Tell Me. Please, George. Like you done before.† George tells their dream like a story out of a fairytale to satisfy Lennie’s childish behavior. Lennie also repeats his sentences as a sign of enthusiasm. The dialect used gives quite a clear impression of what they sound like and helps to visualize their words and actions. What is said is written quite different from how we would write and speak today, so it emphasizes on how long ago this took place. The Ranch consists of more than just workers and one dream. George and Lennie weren’t’t alone; there were others with different occupations and completely different dreams. George and Lennie’s dream later developed into a larger dream including one other member. Candy, a former worker, who had lost his hand on the ranch so he wasn’t much use. He was aware that it wouldn’t’t be long until he would have no were to go, he was only getting benefits for his loss on the ranch, and no one wants a useless worker hanging about. When Candy over hears George going into story mode, he was overwhelmed knowing that there was some hope. â€Å"You know where’s a place like that?† and â€Å"How much they want for a place like that?† showed Candy was deeply interested by asking questions. Candy was interested by all of this because his life was slowly passing by and he was still not doing anything about it. So this dream of having a ranch and not working for somebody was a big eye-one for candy and seemed very interested in the dream. He stated obviously that he’s interested by saying, â€Å"S’pose I went in with you guys† and shows us how desperate he is by offering â€Å"three hundred an’ fifty bucks† which was more than half of the overall payment required. Just to sweeten up the deal even more he adds, â€Å"†¦I could cook and tend the chickens and hoe the garden some.† And â€Å"I’d make a will an’ leave my share to you guys in case I kick off,† Candy chose his words carefully letting George know it will benefit everyone rather than it being a selfish gesture. Just to make sure they kept him in he used a very short but never the less a very effective emotional line, â€Å"When they can me here I wisht somebody’s shoot me.† Automatically they feel sympathetic towards him because he lost his hand and his best friend, the dog. It was after that conversation that Candy gained hope after all. However, a serious incident occurred which lead George to kill Lennie for the good and safety of others. He gave up on the dream and decided to become a part of what everyone else already was. â€Å"then – it’s all off?† Candy asked sulkily. Without George, Candy couldn’t’t stand a chance making the dream come true alone and there was no persuading George to reconsider. Candy was vexed at Curley’s wife as she laid dead, â€Å"Ever’body knowed you’d mess things up†. He knew that if she didn’t disturb Lennie they would all be able to leave the ranch and have a good life together. Now that she had caused all these problems he had no respect for her at all and insulted her by using harsh names such as â€Å"lousy tart† and â€Å"bitch†. Women to those times weren’t seen as equals, they done what they were told and weren’t much use. Curley’s wife is a good example of a typical woman to those times. She is referred to as Curley’s wife and nothing else to show her lack of importance. She craves attention as no one pays her no mind, so she resorts to Lennie who listens too her dream. Her dream was to make something of her self by becoming an actress. â€Å"Coulda been in the movies, an’ had nice clothes – all of them nice clothes they wear. An’ I coulda sat in them big hotels, an’ had pitchers took of me.† she reminisces on the past were she had a chance of fulfilling her dream and all the materialistic things she would have had. She sounded ungrateful when she said, â€Å"I wouldn’t be livin’ like this, you bet† as if to say what Curley had to offer wasn’t good enough when that’s what nearly all women wish they could have. Her marriage to Curley was an escape from loneliness which seemed to have failed. As she was an attention seeker she used her sexuality to her advantage to lure in other men, even if they were at the bottom of the social hierarchy. Although the other men were aware of the sly schemes, Lennie was mesmerized by her beauty and was generally vulnerable. She even admitted that she was lonely to make Lennie feel sorry for her by saying, â€Å"Why can’t I talk to you? I never get to talk to nobody. I get awful lonely.† She did this to make him feel sorry for her and give in to her cunning ways. She had finally found someone dumb enough to listen to her pitiful life story without passing a judgment on her and it all started from, â€Å"Maybe I will yet.† Then with such passion she let lose what she had bottled up inside for a while. She couldn’t care about what Lennie had to say when he included his own dream in the conversation, â€Å"she went on with her story quickly, before she could be interrupted.† For someone desperate to talk to someone she seemed awfully ungrateful and selfish. She was fully aware of what he was capable of yet she still took the risk of getting to close. â€Å"She took Lennie’s hand and put it on her head† she told him to â€Å"Feel right aroun’†¦Ã¢â‚¬  this was the biggest mistake she could have ever possibly made. â€Å"From the slightest jerk he began to panic. His child and animalistic side began to collide again. Like a child he held on and panicked, however, he didn’t realize he was hurting her and she wasn’t strong enough to struggle free. She died young and still could have made something of herself but she could never get another chance after that.† This quote is taken after Curley’s wife died, her dreams like the others but hers different of wanting to be famous were shattered. Crooks is just the isolated â€Å"nigger† at the bottom of the social hierarchy on the ranch who constantly got degraded by everyone. His status is even lower than any woman’s. Any black person to those times would have the most selfless dream, to be treated as an equal and to have freedom. George and Lennie were the only ones that communicated with Crooks so it probably made him feel somewhat wanted. Crooks also developed a desire to join the dream. Crooks constantly had to take everything thrown at him verbally by Curley’s wife as he had no status as a â€Å"busted-back nigger†. She constantly abused him and when he finally decided to stand up for him self he got knocked back down again. â€Å"Keep your place then, Nigger. I could get you strung up on a tree so easy it ain’t even funny.† This shows that if Crooks did anything out of the ordinary it will be reported and he will be dealt with in harsh ways. It made him realise that he couldn’t take part in the dream, all hope had been lost thanks too the threat Curley’s wife made. Every character mentioned above presented their dreams in the form of a story to another character. Each of the dreams were different yet similar in many ways. All of the dreams resorted to freedom from somewhere or someone, and not to suffer from financial problems. They all wanted to be able to support themselves and survive from what they owned. The only difference being that some were unrealistic and they had different views of the dreams they wished too accomplish. In the past Curley’s wife was close to being an actress twice. Only thing that stopped her was her mother, who didn’t let this dream continue knowing what the consequences would be later on in life. George, Lennie and Candy were less than a month away from completing their task of obtaining the land. In the end Lennie accidentally ruined everything and didn’t even know what he had caused. Crooks wasn’t as close, he only had hopes of becoming apart of the dream, but nothing had been established officially. I think the situation on the whole affected George the most as it was originally his aim to work towards it and without it he felt like there was nothing left for him. He lost faith in his dream and his fellow companion. I believe Steinbeck looked at how the Great Depression affected the different people in America and sympathized on their behalf. All the characters represent all types of people in America; the elderly, disabled, women and the ethnic minorities. They all played important parts as they helped to show how major the issue was.

The Great Gatsby: Chapter 7 Analysis

The communication of this invitation through Gatsby suggests initially to Nick that ‘something was up'. The air tension is increased by Fitzgerald's use of pathetic fallacy: the weather is â€Å"Hot!†¦Hot!†¦Hot!† so that it, like the atmosphere in the chapter ‘hovered on the edge of combustion'. It is almost the last day of summer, appropriately. There is a feeling that the last chance for Gatsby; that the darker days of autumn and winter are on their way; that things are drawing to a close with the demise of the summer. The telephone call received by Tom at luncheon (from Mrs.Wilson) adds to the air of expectancy and tension. It is also the first time the reader has seen all of the main characters of the play gathered together, adding to the idea that the climax is due soon. Daisy and Jordan's skin is powdered over, suggesting a papering over of cracks, and the falsity of the situation. Nick contemplates ‘the scalloped ocean and the abounding blessed isles', almost palpably desiring an escape. Daisy's public kissing of Gatsby, suggests that she is ready to make the relationship public, but her ‘clogging' on the fireplace suggests an almost hysterical desperation. Tom notes the change in the footing of their relationship, as Daisy exchanges apparently trivial comments that betray their intimacy : â€Å"you always look so cool†. His response to this is an attempt to shield Daisy from Gatsby, by trying to have her travel in his car to New York. He clearly recognises that ‘she had told him that she loved him'. Daisy's ‘presentation' of her child, Pammy, to Gatsby and the assembled company has striking effect upon Gatsby; she is concrete proof of the marriage between Tom and Daisy, inescapable evidence that Daisy has shared the last 5 years of her life with someone else. Tom agrees to Daisy's suggestion that they go to town as a welcome distraction from the almost surreal scene that appears to be brewing at the house. As the girls prepare for the outing, Nick notes ‘the moon hovered already in the Western sky', suggesting that time is again running out. As Tom gets whiskey, Fitzgerald has Gatsby explain the irresistible allure of Daisy's voice: â€Å"her voice is full of money†, This clarifies the whole moral stance of the characters in the text: drawn to the money in her siren's song. Nick thinks of her at this moment as † high in a white palace the king's daughter, the golden girl† in a vision that simultaneously draws together the multiple images of silver, gold and white that Fitzgerald has used throughout the text to suggest money and wealth. The drive to town provides another opportunity for Gatsby and Daisy to be alone together as Daisy evades Tom's suggestion that he drive her ‘in this circus wagon' – Gatsby's car. This description clearly demonstrates the contempt of the patrician for the vulgar display of wealth by Gatsby, the parvenu.

You are the general manager of a large construction project. The Essay

You are the general manager of a large construction project. The contract has both financial incentives for finishing on time or early as well as large penalties if the project is completed late - Essay Example In the project, critical path step B is an activity that is causing delays to the establishment of the solution to the problem. Consequently, the manager should make step B be of a higher precedence than step C and D. Activity C and D do not constitute the activities in the critical path. For this reason, interruptions and delays of tasks C and D will not affect the total time span of the project. All the activities in the critical path need to be given a higher priority than all the other tasks that do not fall under the critical path (Hansen, 2008). A delay, in activities in the critical path, would result to delays in the whole project (Hansen, 2008). In this regard, I would address the matter in step B since it is one of the activities that fall in the critical path. Delays in this activity would result to a delay in the whole project. In prioritizing repairs, in the other two steps, I would identify the activity that would pose a danger to the completion of the project and prioritize them. I would solve the matters in the steps according to their

What is about 'mercy killing' Essay Example | Topics and Well Written Essays - 1250 words

What is about 'mercy killing' - Essay Example The base of democracy or fundamental human rights mean individuals free will and rights. If so, giving a right to choose pleasant death to a person is also needed. Along the path from life to death, it is essential to choose the way and timing according to ones own faith about death. I am of the opinion that euthanasia should not be allowed unless a patient is very much pain that can end up killing them. Euthanasia has elicited a big debate across the countries in the world whereby some approve the practice while others detest it. These reactions are based on the view that people take towards the practice based on their cultures and traditions. In my cultural context, euthanasia is considered the same as killing another person. A life of a person is very precious, it is a like a taboo that a person should not terminate the life of another irrespective of the means used. There are some areas where euthanasia is totally banned such that even the patient cannot seek it. I do not think is right because the patient knows what they are going through. The procedure of ‘mercy killing’ it is not popular across many populations, therefore it skips the minds of many to imagine whether such a procedure is ever done anywhere in the world. I initially never though there was ever such a procedure until I went to high school. In most cases, the less developed parts of the world have ve ry little awareness on this procedure. However, in the developed world, people are very much aware and at times patients request the procedure to be done to them. In this regard, there is no option other that the doctor heed to the patient’s need if the laws allow it. Myself included, a majority of the people have some basic understanding of euthanasia. Across the population, it is important that people understand what this procedure entails; this is because very few are able

Problematic Media Use Essay Example | Topics and Well Written Essays - 750 words

Problematic Media Use - Essay Example Alongside this dynamic shift with regards to how society currently operates, a unique issue has been determined and has been labeled by research as problematic Internet usage e (PIU). As a result of researching this particular exhibition to a more profound degree, the following analysis will consider the article entitled, â€Å"An Evaluation of Two Characterizations of the Relationships Between Problematic Internet Use, Time Spent Using the Internet, and Psychosocial Problems†. It is the hope of this author that such analysis will help to shed a degree of light not only with regards the particular article in question, but also with respect to justifying it with some of the other readings that of engaged during the course of this week. One aspect of PIU that the article does not cover in enough depth is with regards to whether or not PIU is entirely dependent upon the exhibition of psychosocial issues. Although it can be appreciated that PIU is an issue that affects a broader a nd broader subset of current society, the fact of the matter is that determining whether or not this is an issue that should concern broader society is ultimately rooted in what the outcomes and side effects of PIU portend (Tokunaga & Rains, 2010). If it is true that PIU is mutually exclusive and cannot exist without the prevalence of psychosocial issues, then the research itself stands solidly upon the framework of delineating a codependent relationship between these. However, if it is the case that PIU can exist to varying degrees without clear and determinate impacts upon psychosocial interaction, the entire rubric and theses of this particular research is undone. Another shortcoming that is evidenced with regards to the research is whether or not correlation equals causation. Although the researchers lay out a definitively well researched piece with regards to whether or not anxiety, depression, and a litany of other psychosocial ills can result from Internet dependency, the rea der/researcher automatically questions whether or not the weekend exhibition of these could merely be exacerbated by the withdrawal from society and increased usage of the Internet as a means of escapism. Naturally, this particular review and analysis piece is neither the time nor the place to discuss whether or not such an alternative theory is indeed more applicable; however, it is worthwhile to note that accepting the theoretical model put forward by the authors of the research piece lens one to categorically accept several inherent weaknesses of the research. This naturally relates to many of the other topics that have thus far been read during the week’s assigned readings. Specifically, an issue of measurement is brought to light with Gibbs et al in their article, â€Å"First Come love, then comes Google: An investigation of uncertainty reduction strategies and self-disclosure in online dating†. The importance of tackling the measurement issues first are of the ut most importance as they lay the groundwork for any possibility of drawing further inference with regards to the research topic at hand. Ultimately, the issue of self-disclosure, as with any psychosocial issue is of a paramount importance. Other articles that helped to discuss the differing nuances of how technological addiction is playing into the lives of the average

Importance of play in the speech and language therapy Assignment

Importance of play in the speech and language therapy - Assignment Example In my opinion, the members of administration team simply do not understand the importance of play in the children’s development and I believe such actions will highly affect our department. Playing is one of the activities that young children often spend the better part of their time doing during the day and it is therefore important to appreciate the significance and impact of playing on the learning and development of children (Pellegrini, 278). First and foremost children often use play to experiment and explore new things as well as use words to express their thoughts and ideas during play. As children grow and become more sophisticated in their play skills, their language development may equally advance. Children use language during play to solve problems and to communicate their desires. During play, children are normally provided with opportunities for social interaction with their peers and therefore learn to express and control their emotions using language. Speech an d language learning is an ongoing process that takes place all day long particularly during the children’s everyday activities such as playing. During such activities, children usually significantly enhance their communication and language skills in a very indirect way. Additionally play materials that allow children with language problems to play imitative and repetitive games may also them to acquire important skills such as those of listening and attention which are necessary for their speech and language development. According to many speech and language experts, play is one of the most effective and natural ways of encouraging the development of speech and language skills in children. This is particularly because small children usually learn many skills such as listening, attention, sharing, building sentences and imagination through play. Another important reason why it is critically for the hospital administration not to affect any budget cut on the play materials in m y department is that play helps the children to develop their concentration ability. For example playing children not only focus on objects and people but they also listen and learn a lot of new names and words and this is necessary for their communication development. Apart from speech and language development, playing also help children to learn about cultural expectations and norms, discover the world around them and learn how to negotiate their ways in their surroundings. Play also support development and learning of children in a number of ways. Recent research suggests that sufficient play not only enhances growth and enrichment of children but their active participation also facilitates control and mastery leading to feelings of self efficacy and competence. On the other hand, play also encourages children to take turns and this is also important because individuals often take turns to speak and listen during normal conversations. Play enhances confidence in children while ex pressing themselves and through this the child develops the art of; listening and attention, naming, building sentences and understanding. In order to learn a language, children need both to hear and see signs. This is why most of the play materials designed for children are usually labeled and described to enable them to make connection between the objects and the words and eventually learn to use such words. Children need very many playing materials and the proposed budget cuts may potentially affect their learning abilities. Right from birth babies should get sufficient playing materials such as dolls,

The Japanese Reasoning for the Attack on Pearl Harbor Research Paper

The Japanese Reasoning for the Attack on Pearl Harbor - Research Paper Example However, the losses were very less comparatively but the attack did result in America entering the World War II officially. The Empire of Japan and the United States of America started going separate ways in the 1930s due to differences over China. Japan began this by sending its men to Manchuria which was then a part of China. This land was conquered and taken over by the Japanese in the year 1931. It was in response to this that the United States formed the Stimson Doctrine named after Henry L. Stimson who was the Secretary of State of America in the Hoover Administration. This Doctrine stated that America did not recognize any changes made internationally regarding the addition and/or exclusion of territories that were carried out by force. This was mostly to warn Japan that it was not counting Manchuria as part of the Japanese Empire because they had taken over the land by conquering it. Thus, in their eyes, Manchuria was still a part of the Chinese land. Six years in the future i.e. in 1937, Japan started a long but also a mostly unfruitful campaign to take over the whole of China. By 1940, the government had joined the Axis Alliance and become an ally of the Nazi Germany. By 1941, Japan had managed to conquer Indochina. Watching these steps taken by Japan alarmed the United States as it had its own economic as well as political interests in the East of Asia1. To bring a halt to its plans of conquering China, America raised the total amount of the military and even the financial aid that it was providing to China so that it could protect itself even more properly against the attacks. The States also started a program, including Dutch East Indies and Burma, which was at that time controlled by the British, to strengthen its military power in the Pacific. Together, they hit Japan where it would hurt the most; they â€Å"froze Japanese assets in the United States, thus bringing commercial relations between the nations to an effective end. One week later Roos evelt embargoed the export of such grades of oil as still were in commercial flow to Japan†2. They stopped exporting oil, steel, scrap iron and the other necessary raw materials that Japan required to produce goods for its own people. The country was very short of natural resources and had been buying them from other lands, including the States. Once America placed this embargo, particularly on the export of oil which they most certainly needed for military uses, the Japanese government saw these actions to be threatening towards the nation’s growth3. America, on the other hand, was making quite a dent in the economy of the country so that the Japanese would stop using their few precious resources to invade China, and would move out instead4. However, Japan refused to give in and kneel to America’s indirect demands and did not withdraw from China. To fulfill their needs, the Japanese leaders came up with a plan to take over those lands in the South east of Asia, which were rich in natural resources, so that they could continue with their production of the required goods5. They did, however, realize that this move would lead to them going against the United States and unofficially declaring war. That being said, Japan still thought that it could convince the United States to remove the sanctions so that they could go back to importing the resources that they required. They did need a greater oil supply especially since they were

Fascism, Nazism, Communism Essay Example | Topics and Well Written Essays - 750 words

Fascism, Nazism, Communism - Essay Example This paper compares and contrasts Italian fascism, German Nazism and Soviet communism. â€Å"Fascism broke new grounds in its use of mass politics against the conservatives’ enemies, the left and liberals† (Paxton & Hessler, p.180). Same way fascism and communism also fought against capitalism and democracy. Hitler was not in a mood to accept an ideology like socialism. In his opinion, Germans were superior to other cultures and hence they have the right to enjoy more privileges than other cultures. Instead of working class, Hitler gave more importance to the ruling class. It should be noted that Soviet communism gave more importance to the interests of working class. It argued that the gap between the rich and poor should be reduced as much as possible and for that purpose the interests of the working class should be given priority. â€Å"Fascism and Nazism planned to make life better for the people through expanding the power of the government. Communism thought that people could have better lives if there was not a class system†(Nosotro). Italian fascism gave more importance class collaboration rather than class conflicts while Soviet communism gave more importance to class struggles rather than class collaboration. On the other hand, German Nazism gave more importance to national pride rather than socialism or economic inequalities. In fact â€Å"The catalyst to fascism was the threat of revolutionary socialism† (Paxton & Hessler, p.199). In other words, Italian fascism never believed in socialism. It argued that both working class and ruling class should work in collaboration to the economic growth of the country instead of trying to achieve socialism through revolutions. German Nazism on the other hand gave more importance to nationalism rather than economic inequalities of socialism. Hitler in a speech in 1928 argued that brutality rather than humanity is the basis of life! Man has become master of the world through conflict a nd continual struggle†¦ But mankind is not a uniform and equal mass. There are differences between races. The Earth has received its culture from elite peoples; what we see today is ultimately the result of the activity and the achievements of the Aryans (Kitson, p.1925). Nazism was adamant about the supremacy of Aryan culture over other cultures. It believed that only Aryans have the right to rule the world and other cultures should work under the Aryan leadership. Both Soviet communism and German Nazism were accepted uniformly in Soviet Union and Germany. However, Italian fascism was not accepted uniformly throughout Italy. â€Å"While the worker strongholds like Turin remained close to fascist ideas whereas the underdeveloped south remained in the hands of local bosses†(Paxton & Hessler, p.184). In other words, fascism failed to attract all Italians just like Soviet communism or German Nazism. ‘Italian fascism gained power in 1920 with the help of traditional co nservatives. Nazism also gained power in Germany in 1933 with help of similar alliances† (Paxton & Hessler, p.195). In short, both fascism and Nazism sought help from conservatives and fundamentalist to gain power. However, conservatives and fundamentalists were the strongest opponents of Soviet communism. Both fascism and Nazism are autocratic in nature compared to communism. Even though communism is not autocratic in nature, its principles and ideologies are not so democratic. It should be noted that Soviet communism was not giving any respect

Ethical Argument Essay Example | Topics and Well Written Essays - 1250 words - 1

Ethical Argument - Essay Example Even so, Pope (530) warns against embracing such social change without understanding what is at stake. Despite the results of the opinion poll, only a handful of the American states allow the marriage between couples of the same sex with others reversing their earlier stand supporting the union. This could be an indication of the fact that this form of union goes against certain expected standard social norms. Therefore, same-sex marriage is socially deviant and should not be legalized. Civil marriage refers to a legal contract or social unions between two persons with the government, through its officials, performing, recording and recognizing it (Corvino and Gallagher 11). Marriage accords the couples exclusive rights and benefits. However, same-sex marriage brings forth a myriad of symbolic, religious and constitutional questions that has caused a continuous intense debate on the legalization of same-sex marriage (Pope 530). Gertsmann cites the Marriage Act 1961 which was amended in 2004 that defines marriage as the union between a man and woman and excludes all the others (15). This excludes same-sex marriage from being considered as marriage, a fact that has caused same-sex activists to push for change for their recognition in law. The case against same-sex marriage revolves around religious, moral and health concerns. By prohibiting homosexuality, a majority of religions, by extension, prohibit same-sex marriage. A majority of Christians argue that same-sex marriage is immoral and goes against the will of God and the reason of procreation that saw Him put man and woman together (Pope 533). In fact, Christians quote God talking of such a union as detestable in the Old Testament. Islam also prohibits same-sex marriage noting that the reason why Sodom was destroyed was because of such sins. Similarly, Hindus oppose same-sex marriage noting that for every soul, there exists another soul mate of the opposite sex. Since sex may

Ferdinand Davids Trombone Concerto Essay Example | Topics and Well Written Essays - 1000 words

Ferdinand Davids Trombone Concerto - Essay Example After a brief hop at the sixteenth note, the triplet should drive through directly to the arrival note. The motivic rhythm reappears in measures 46, 48, 102-106, and beyond the first movement. Once the initial motif is past, the entire statement (measures 42-65) is also important to emphasize for the audience. The poetic pairing found in measures 44-47, and then again in measures 48-51, is one of the key elements that must be inflected, and then followed up effectively in the dramatic resolution found in measures 52-55. This is a good microcosm of the dramatic builds to be found in the work, and the half notes in measure 52 are one excellent place to build dramatic value. Vibrato is one way to accomplish this, but a solid drive through the air column is also crucial here. The grand opening then takes place between measures 60 and 83. The first four measures of this should be played with a significant amount of verve and vigor to lend a sense of heroic drama. Measures 64-67 remind the listener of your opening passage, and so a definite sense of sweep and flow is important at this point. In measure 68, a definite development begins, and so dropping slightly in dynamics before entering the measure will give more energy to the later crescendo build; one of the most effective ways to snatch the attention of the audience is to drop the dynamic before beginning a slow build. This crescendo should reach its boiling point in measures 72 and 73, with the flourish in G-flat major. These two measures can be performed with some license as to the rhythm, because of the dramatic power. As this first section of the opening ends, in measures 76-82, it is important to pay special attention to the dotted eighth notes. Accents and marcato may well be called for here, as long as the tongue stays out of the tone's way. The diminuendos here can definitely be musical and technical assets. What one might term a cantilena then comes, from measures 83-102. Grove's Dictionary of Music defines cantilena as a "flowing melodious phrase of vocal character." It comes from the Italian, meaning "little song." This is a point in the piece that permits the performer really to let loose with the lyrical side of the trombone. The piano dynamic here should be taken to its metaphorical extremes. Piano here does not necessarily just mean quieter, but conveying a sensual sort of softness to the listener. How would a fur coat feel How would a warm blanket feel These are the sorts of ideas that the trombone should convey to the audience at this point. This should be combined with the dolce mood. The meaning here, of course, is "sweet," but that is a word that has numerous connotations. For the purposes of this performance, the sweetness that comes in romantic attachments would be a good mood to consider while playing this section, or the sweetness that comes from a conversation with a yo ung child. The phrase marks should not be read as dividing these first four measures into separate phrases, but four ideas within the same phrase. The phrase marks should bring lucidity and charm to the longer musical idea of the four measures, rather than dividing the idea into artificial chunks. The "d" in 4th comes in handy here in measures 94, 95, and 99. In measure 94 it can help smooth out the slur,

Design an Advertisement or a Web Site for the Cinema Essay Example for Free

Design an Advertisement or a Web Site for the Cinema Essay Design an advertisement or a web site for the cinema. Your advertisement or web site should be attractive and easy to update as films and timings change and be suitable for publication in various places. The application chosen To complete the task above, I used Microsoft Front page 2000. T his is a Desktop Publishing package and enabled me to create a web page, as specified in the task brief. This task required a DTP (Desktop publisher) as it is a web based project, in other words, the result could be published on the web. I used Front page, as it enabled me to easily update and modify the web page, this was also required in the specification. It is also easily published onto the World Wide Web, or the Internet, as long as I have the required web space necessary. I could have used Microsoft Word, which I have more knowledge about, and therefore would have been easier to use, but I felt that I would use Front page, as it automatically saves the web page as the required format for web publishing and also it is designed for my required purpose. Equally I could have used Microsoft publisher, also a desktop publisher, but as I have no previous experience using this program, I felt that I should use Front page. Software Advantages / Benefits Disadvantages / Drawbacks Front Page Specifically designed for Desktop Publishing, many features designed especially for Web publishing. Very complex to use, not much experience in using program. Word Very simple to use, can be used by beginners to experts, the more experience a user has with the program, the more complex the program can become. Primarily a Word-processing package, not designed for DTP. Publisher Desk Top Publisher, lots of templates for easy publishing, easy to update and insert images and text boxes etc. I have not go much experience in using this program, also it is quite difficult to use with no experience. Does not automatically save as html format. Big Ms Software Big M cinemas are currently running computers that can only run basic word processing packages, they may need to upgrade their software, for example a Microsoft Office suite may suit their needs as this can be basic and advanced depending on the skill of the user. Their printer software and drivers may also need updating as they have problems when sending things to be printed, they sometimes do not come out, as they should. Software available for use at home; Microsoft Office 2002; * Publisher * Word * Front Page 2002 * Access * Excel * PowerPoint To complete this project I will not need any other programs, I will need Microsoft Access, Excel and Front Page, and Word for this write up. Software I need to complete this project; Software Purpose and Advantages Front Page Specifically designed for Desktop Publishing, many features designed especially for Web publishing. Specific for my requirements also easy to update page and site, as specified in the requirements. Word Very simple to use, can be used by beginners to experts, the more experience a user has with the program, the more complex the program can become. Specific for Word processing that is what I need it for, in this write up. It incorporates many advanced features, e.g. table of contents, that otherwise would take along time to produce. Excel A very advanced spreadsheet program, which will enable me to make a accounting package, with the use of functions, macros and many other features specific to this program. Access This database software will enable me to complete task 3, a very advanced database program, enabling me to run queries, forms and to create letters to members depending on their interests. Hardware For this task the user would need a relatively fast computer, e.g. 300mhz or over, this would enable the user to use Front Page effectively. Any slower and the time needed for image handling, and even fast input of text maybe hindered. I could have used a slow home computer or those in the library with slower processors and older software. I decided to use the computers in the ICT department as they are adequately fast enough for my needs and will run all the software I need. School Computers Connected to a LAN (Local area network) Standard Qwerty Keyboard Standard PS/2 Mouse 15 Visual display unit (SVGA) 600MHz Celeron processor 6GB HDD A:\ Drive for 3.5 diskette Epson Stylus colour 850 Inkjet Hewlett Packard 2100 Laser jet Printer Epson Scanner 56K Modem My Home PC 333MHz Celeron Processor CDRW 8*4*8 and 10*8*32 with Nero 4 7.5GB HDD Standard Qwerty Keyboard Standard PS/2 Mouse 15 Visual display unit (SVGA) A:\ Drive for 3.5 diskette Epson Scanner Epson stylus colour 440 Inkjet 56K Modem Hardware Advantages / Benefits Disadvantages / Drawbacks School computers Fast processor, 600mhz, networked so I can access work from all computers, very efficient laser printers and colour printers. Some computers do not have Front Page, although this is Software, limited printer credits, and sometimes the internet connection is down. Big Ms Computers None, apparently. Capable of basic word processing. Many; too slow, trouble with printers, whole system out dated. Qwerty keyboard Most commonly used keyboard. Not as quick to type on as other keyboards, e.g. Natural keyboards. Home PC Linked to Internet, no sites are filtered, enables me to do extra project work, out of the time limit. No printer credits Slower processor than school, infected with virus, so has a tendency to crash. Does not have all the same software as school. Lacks new scanner etc. This system is similar to what Big M Cinemas may need to upgrade to, 600 MHz processors are adequately fast enough and will run every piece of software available today. Also the laser printers used at school may also be necessary for Big M cinemas to get high quality print outs and also quick printing. This would enable them to print out lots of very high quality leaflets, and information sheets in a very short amount of time. Using the software In designing a Web Page, as specified in the project requirements, I broke the steps down into smaller parts. Firstly I researched the films, included in my database, and selected some of the latest films. I then created 3 separate pages, Main page, Latest films and Ticket prices. I then created the main page, a very simple page, as outlined in Appendix 1, or the web page research. I then, very briefly explained the ticket prices, Standard Luxury and disabled, giving prices for each. The last page I created was the Latest film reviews, where I simply entered a block of text, or the review and a graphic into a table with two cells, giving a simple and easy reading review page. Data needed by the system The data needed by the Web page system, will be information such as film times, ticket prices, certificates of films, and corresponding pictures for the review of the film. This will also apply for the corresponding text for a certain film. When the data is put into the system, it will have to be correct. I made sure the data was correct by checking it previously. I also made sure when compiling the film reviews, obtained the text and graphic and the title of the film at the same time, so as not to make a mistake. I would have to make sure that information like the Certificate of the films, e.g. U, PG, 12, 15 and 18 was correct as this may be misleading if it was not. Film times were also important as if these were incorrect; people may turn up to the cinema at the wrong time. A lot of this data is included in the Film table on the Database, see Database. This information could be put onto the web page if I were to do this task as the extension. I will also check spelling of film nam es using a spell check tool. The ticket prices would also have to be correct to correspond with the Spreadsheet, as I only included standard seats in the spreadsheet, I would only have to make this price match, in this case à ¯Ã‚ ¿Ã‚ ½5. System outputs This task should produce the following outputs, a printout of the Web page, as necessary in this project, to hand it in. Another output possible would be a booked ticket, if I had constructed a booking system on my website, this could be an extension task. I chose to keep my outputs limited to a printout, as this is all I had time to do during the project as time was limited. Systems like the spreadsheet and database will have many more outputs as these were required. Analysing the problem During my research, I found the user would like colourful and attractive, also easy to use web sites. The evidence to support this can be found in Appendix 1, although this is printed in greyscale, all the web sites are high in contrast and very colourful. They are all very simple to use but very complicated systems at the same time. I will be able to achieve a high contrast and colourful site, and make it simple to use, incorporating hyperlinks to each page but will not be able to create a complex system in the time limit. The stages of input, processing and output are shown in the flow diagram below; Types of system Output The system can output information in different formats e.g. using a VDU the information can be displayed on screen, also the information can be printed using many different types of printers e.g. laser or inkjet. Output devices Advantages/Benefits Disadvantages/Drawbacks Visual Display Unit Size can be altered on most programs e.g. percentage of view. Information can be changed on screen. Information cannot be amended by hand whereas a printout can be. Inkjet printer Colour or Black, good quality. Printouts enable information to be marked or easily amended. Very expensive, slower than laser printer. Laser printer Very fast printing, black, very high quality. No colour in some models, extremely expensive. Having looked at the system devices, I decided to use a VDU to change data on screen, which enabled me to change view and so on. To print documents entirely in black, I will use a laser printer for speed and quality of printing. For colour documents I will use the inkjet printed which will enable me to print in colour. One more system output is the image on a VDU, which the user of the system will be able to view. The information, and film reviews will be what is visible, depending on the page that the user is viewing. Data Storage The data will be stored on the school network and my home PC, in addition I will keep a back up on floppy disk. This is three methods of data storage, the hard drives of both computers, are a form of magnetic storage, this also applies for the floppy disk. If I were to make sure I would not lose my data, I could store it optically on a CD (compact disk). For security purposes, I could store all my work on a tape, a security procedure carried out on the school network weekly. Testing To make sure that the system works I will complete these tests; * Ask an impartial person, to use my system, for example, I could ask them to load up the home page, by opening the file in my area, Click the link to the reviews page and print it off, If they were successful I know my system is successful. * Results; I completed this test and the user was able to complete my request. * Ask another person to open the web page, again and click the link to the reviews page, again as before, but this time, highlight the review and graphic for panic room, copy it and paste it into Word, and print it off. * Results; I completed this test; it was also successful, proving my system is user friendly. Simple Documentation For this task, I will only complete a simple user documentation. As this Web page is very simple, and does not have any complex features or relations, it is very simple to use, and as there are no booking systems, or show times, it is not very complicated. * If the system has been uploaded to the Internet, * Type in the address bar; www.BigMCinemas.com * This will take the user to the home page, * Follow the links to either, the Latest film review page or the Ticket prices page. Latest Reviews; * Look at the film reviews, * Scroll down to access hidden ones, * Either, take the link back to the home page or to ticket prices. Ticket Prices; * Gather required information on ticket prices, * Either, take the link to the home page or latest reviews. This is an incredibly simple user documentation, but as the system is so simple to use, this is all that is required. If a booking system were incorporated, the user documentation would become more complex. Evaluation The benefits of the system The benefits of the system I have developed will be; * The user will be able to access Film reviews from any computer connected to the internet. * If I were to extend my site incorporating a booking system, the benefits for the user would be that they would be able to book online, and pay with a secure connection using their credit card. * Another advantage for the user, if they were to become a Friend of Big Ms Cinemas, they would be able to get benefits from using my system, as members may get a reduced price for tickets, and priority seats. * At current, the site is very simple, but another benefit, as it is web based and designed to be easily updated, I will be able to update the film reviews very quickly and easily. This is a benefit for the user as they are getting the latest reviews, and prices as soon as they come out. There may be drawback to my system, such as that at current it is very simple and may not provide all the information the user wants. For example, it only has reviews for a limited number of films, due to the time limit I had in making it. When using the system, which only has 3 different pages, the user may not get all the information they require, e.g. different prices for different seats, and discounts for members. I produced a very simple system and realised that I would need to spend a lot more time in planning and designing the site if it were to become viable to upload to the web and use as an active system. I would need to produce a booking page, with all the different seats and prices for each screen, and depending on the age Certificate, update the ticket prices, e.g. if a film was a 15, child prices would not need be included, and so on. A secure connection would need to be gained for Credit card payment, and I would need to produce a Membership form online, like that featured ion Appendix 2. as well as this I would need to increase the amount of reviews, and add Film times, and their certificates. I could have used a membership form that I could design and print out, and hand out at the Cinema chains, by hand. These forms could be returned in the post. This method is a lot slower and not so reliable, as sending letters is not 100% safe, they can easily be lost or misplaced. Alternative methods for my system; * (1) Instead of publishing my system on the Internet, I could put my parts of my system, as already exists into a newspaper. Many cinemas already advertise film times, and the names of all the films, in weekly newspapers. There are many drawbacks to this system. I would only be able to put in a small advert, due to a large cost for advertising, and I would only be able to include film times, certificates and screens showing certain films. It is a very effective method as it is available to a lot of people. * (2) I could also put my system onto Tele-text, instead of the internet; there are also many problems with this method. Tele-text is quite slow, the design and layout is very simple and not very eye-catching. Only certain information would be provided, as graphics for the reviews would not be possible. An advantage of this system is that it is very easily updated. If I had more time, I would have improved my system, and included a booking system, and improved my reviews page, I would also have included film times, different cinemas, certificates of the films, incorporated a membership application page and generally improved it, making it more complex, but regaining its simplicity. My system Alternative Method (1) Alternative method (2) Advantages Enables me to put all the information onto the system, including booking systems, film reviews and film times, and ticket prices that are easily accessible for anyone with access to a PC, with an internet connection. It is also very easy to update, enabling me to regularly keep the site posted and constantly bring up to date the film times and the screens on which they are showing. More people could access the information, as more people have access to newspapers than the internet. It is also a very good way of advertising as more people will see the information and in some aspects, it is quicker than using either my system or method 2, as it is very direct and the information is very easily obtained. By putting the system onto C-Fax, or Tele-text, I would be able to make the information available to any one with a Tele-text compatible television. This would be easily updateable, unlike alternative Method 1, which is only updateable when a new Paper is released. This system could also include a number for phone booking. Disadvantages There are not too many disadvantages to my system; it is a lot more comprehensive than both the alternative methods, as they are both limited. This system would not be very good, as it would only incorporate the film times, and titles. The first system, allows the user to read reviews and book online. Although this system could include a phone number for phone booking, this is a very successful method. Graphics could not be included, although reviews could. Ticket prices and links to other pages could also be provided. Hyperlinks could not be made, and the design and layout is very primitive on Tele-text. Summary The use of ICT If I compare my solution to ones that already exist then I can see that in many respects my system would be better, if I were to extend and improve it. These system already exist and are very successful, as shown in Appendix 1, showing the Odeons web site, a comprehensive example I would need to follow if I were to extend this particular project. Comparing my current system to systems like that on the Odeon page, I can see mine is very primitive, and not very good. The changes that have occurred due to the use of ICT and computers are, the increased ease in Booking Tickets, becoming a member, viewing reviews quickly and easily, and looking up film times, certificates and the price of various tickets. Computers have enabled many more people to access this information and increase the complexity of a system like this. The people that use the system would benefit from using it as it would save them time booking tickets or becoming a member. In some ways it increases security, and reliab ility, as a membership form sent in the post could be lost. The user would also find all the information they need in one place and at the same time, eliminating hassle in phoning up the cinema or buying a newspaper.

Impact of Internal Factors on Islamic Banking

Impact of Internal Factors on Islamic Banking Introduction to the Subject Background of the Subject General Objective The purpose of this study is to examine how the internal factors of the Islamic Banking affected their performance before, during and after the financial crisis in the GCC in comparison to the conventional banking in the same area. Research Questions This study aims to answer the following questions: How did the financial crisis affect the profitability of Islamic Banks in comparison to Conventional Banks? What are the internal factors (bank specific characteristics) that influence the profitability of Islamic banking for every year from 2006 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 2009? Did these factors have the same impact on the profitability of Islamic Banking before, during and after the financial crisis? Did these internal factors influence the profitability of Islamic Banking in the same manner as of the Conventional Banking? Need for the Study Significance of the Study Assumptions of the Study Limitations of the Study Although we cannot neglect the importance of the external factors on the profitability of Islamic Banking, they were not included in this study. To understand the reason behind this decision, we need to go through the different types of external factors and how they are classified: Macroeconomic Factors Country Regulation Rules Bank Regulation Rules These factors were not included for the following reasons: Since we are examining the performance of 92 banks (27 Islamic Banks and 65 Conventional Banks) in 6 countries, the number of countries used in the study is not significant enough to study the impact of GDP and inflation accurately on Bank profitability especially when examining each year separately Country Regulation Rules as per the IMF Database, although it differs slightly for the selected countries, did not change over the period from 2006 to 2009. This means that for each bank, these factors remained constant. Data about Bank Regulation Rules could not be obtained for GCC banks Delimitation of the Study This study was delaminated to the Islamic and Conventional Banks in the GCC whose data could be obtained in the Bankscope database. Chapter 2: Literature Review Overview of Islamic Banking Islamic Baking has established as an alternative to conventional interest-based banking. The first stirring of the Islamic Banking movement began in 1963 by Dr. Ahmed Alnajar in a small town in Egypt, called Mit Ghamar. Dr. Alnajar completed his education in Germany and found that it had many saving banks operating on interest. He took the idea from a savings bank in Germany and created his own small Islamic bank that was interest free. After Dr. Alnajarà ¢Ã¢â€š ¬Ã¢â€ž ¢s small bank proved successful, the establishment of other Islamic banks followed. In 1971, the Nasser Social Bank was founded in Egypt with the objective of lending out money as a charity on the basis of a profit and loss sharing system and helping people in need. And in 1975, the idea of Islamic banking spread to other Islamic regions such Dubai Islamic bank in United Arab Emirates and The Islamic Development (IDB) Bank in Jeddah, Saudi Arabia (Wilson, 1990). Even though Islamic Banking has only been around for thirty years and is still in an evolving stage, Islamic Banking is the fastest growing segment of the credit markets in the Muslim countries. In 2009, Assets held by Islamic Banking banks rose by 28.6 percent to $822bn from $639bn in 2008, according to The Bankerà ¢Ã¢â€š ¬Ã¢â€ž ¢s à ¢Ã¢â€š ¬Ã…“Top 500 Islamic Financial Institutionsà ¢Ã¢â€š ¬? survey while conventional banks posted annual asset growth of just 6.8 percent. Furthermore, GCC states accounted for $353.2bn or 42.9 percent of the global aggregate, while Iran remained the largest single market for Shariah-compliant assets, accounting for 35.6 percent of the total. Source: Asian Banker Research, 2009 Finally, Islamic banking operations are not limited to Islamic countries but are spreading throughout the world. One reason is the growing trend toward transcending national boundaries, and unifying Muslims into a political and economic entity that could have a significant impact on the pattern of world trade (Abdel-Magid, 1981). Islamic Banking Rules and Principles Islamic banking rules are according to the Islamic Shariah derived from the Quran and prophet Mohamedà ¢Ã¢â€š ¬Ã¢â€ž ¢s sayings. The three main practices that are clearly prohibited in the Quran and the prophetà ¢Ã¢â€š ¬Ã¢â€ž ¢s sayings are, Riba (Interest), Gharar (Uncertainty), and Maysir (Betting). Prohibition of Riba or any predetermined or fixed rate in financial institutions is the most important factor in the Islamic principles pertaining to banking. As stated in the Quran à ¢Ã¢â€š ¬Ã…“Allah forbids ribaà ¢Ã¢â€š ¬?. Riba means an increase and under Shariah the term refers to the premium that must be paid by the borrower to the lender along with the principle amount as a condition for the loan (Omar and Abdel, 1996). Gharar occurs when the purchaser does not know what has been bought and the seller does not know what has been sold. In other words, trading should be clear by stating in a contract the existing actual object(s) to be sold, with a price and time to eliminate confusion and uncertainty between the buyers and the sellers. Maisir is considered in Islam as one form of injustice in the appropriation of othersà ¢Ã¢â€š ¬Ã¢â€ž ¢ wealth. The act of gambling, sometimes referred to betting on the occurrence of a future event, is prohibited and no reward accrues for the employment of spending of wealth that an individual may gain through means of gambling. Under this prohibition, any contract entered into, should be free from uncertainty, risk and speculation. Contracting parties should have perfect knowledge of the counter values intended to be exchanged as a result of their transactions. Therefore, and according to Ahmed and Hassan (2007), the principles of Islamic banking and finance enshrined from al-Qurà ¢Ã¢â€š ¬Ã¢â€ž ¢an and Prophet Mohamedà ¢Ã¢â€š ¬Ã‹Å"s Sayings can be summed up as follows: Any predetermined payment over and above the actual amount of principal is prohibited. The lender must share in the profits or losses arising out of the enterprise for which the money was lent. Making money from money is not acceptable in Islam. Gharar (deception) and Maisir (gambling) are also prohibited. Investments should only support practices or products that are not forbidden or even discouraged by Islam. Islamic Banking Products Islamic Banking products have to be done according to Islamic rules and principles, based on profit and loss sharing as well as avoiding interest. According to BNM statistics 2007, Al Bai Bithaman Ajil financing is the most common in Islamic Banking. There are a lot of Islamic Banking products; however there are some famous Islamic products that will be discussed in this section. Al Bai Bithaman Ajil /BBA This involves the credit sale of goods on a deferred payment basis. In BAA, the Islamic bank will purchase certain assets on a deferred payment basis and then sell the goods back to the customer at an agreed price including some margin or profit. The customer will make payment by installments over an agreed period. A fixed rate BBA is a powerful hedging tool against interest rates (Rosly, 1999). Murabahah Murabahah is a contract of sale. The Islamic Bank acts as a middle man and purchases the goods requested by the customer. The bank will later sell the goods to the customer in a sale and purchase agreement, whereby the lender re-sales to the borrower at a higher price agreed on by both parties. These are more for short term financing Mudharabah According to Kettel (2006), Mudharabah is a basic principle of profit and loss, where instead of lending money at a fixed rate return, the banker forms a partnership with the borrower, thereby sharing in a ventureà ¢Ã¢â€š ¬Ã¢â€ž ¢s profit and loss. Mudharabah is an agreement between the lender and entrepreneur, whereby the lender agrees to finance the project on a profit sharing basis according to a predetermined ratio agreed by both parties concerned. If there are any losses the lender will bear all the losses. Musharakah Musharakah means partnership whereby the Islamic institution provides the capital needed by the customer with the understanding that they both share the profit and loss according to a formula agreed before the business transaction is transacted. In Musharakah all partners are entitled to participate in the management of the investment but it is not compulsory. Musharakah can help in providing financing for large investments in modern economic activities Al Ijarah Ijarah means meaning to give something on a rental basis. In Ijarah, the bank acquires ownership based on the promise and leases back to the client for a given period. The customer pays the rental but the ownership still remains with the bank or lender. As the ownership remains with the lessor (bank), it continues to give the service for which it was rented. Under this contract, the lessor has the right to re-negotiate the quantum of the lease payment at every agreed interval to ensure rental remains in line with the market rates (Hume, 2004). Wadiah Wadiah is a trust contract and the bank provides gift (hibah) and various types of benefits to the customer. This is exactly like a normal conventional savings account. Istisna Istisna allows one party buys the goods and the other party undertakes to manufacture them according to agreed specifications. Normally, Istisna is used to finance construction and manufacturing projects. Salam Salam is defined as the forward purchase of specified goods with full forward payment. This contract is normally used for financing agricultural production. According to Hassan (2004), Salam based future contracts for agricultural commodities, supported by Islamic Banks, can help to overcome the agricultural financial problems Table 2.1 lists the products of conventional banking and their correspondent products in Islamic Banking. Deposit Services Current Deposit Wadiah Wad Dhamana / Qard Hasan Savings Deposit Wadiah Wad Dhamana / Mudaraba General Investment deposit Mudaraba Special Investment deposit Mudaraba Retail / Consumer Banking Housing Property Finance BBA / Ijara wa Iktina /Diminishing Musharaka Hire Purchase Ijara Thumma Al-Bai Share Financing BBA / Mudaraba / Musharaka Working Capital Financing Murabahah/ Bai Al-Einah/ Tawarruq Credit Card Bai Al-Einah/ Tawarruq Charge Card Qard Hasan Corporate Banking/ Trade Finance Project Financing Mudaraba / Musharaka / BBA / Istisna / Ijara Letter of Credit Musharaka/ Wakala/ Murabaha Venture Capital Diminishing Mudaraba/ Musharaka Financing Syndication Musharaka + Murabaha/ Istisna / Ijara Revolving Financing Bai Al-Einah Short-term Cash Advance Bai Al-Einah/ Tawarruq Working Capital Finance Murabaha/ Salam/ Istijrar Letter of Credit Murabaha Letter of Guarantee Kafala + Ujr Leasing Ijara Export/ Import Finance Musharaka/ Salam/ Murabaha Work-in-Progress, Construction Finance Istisna Bill Discounting Bai al-Dayn Underwriting, Advisory Services Ujr Treasury / Money Market Investment Products Sell buy-back agreements Bai al-Einah Islamic Bonds Mudaraba / Mushraka + BBA / Istisna / Ijara Government Investment Issues Qard Hasan/ Salam/ Mudaraba Other Products Services Stock-Broking Services Murabaha/ Wakala/ Joala Funds Transfer (Domestic Foreign) Wakala/ Joala Safe-Keeping Collection (Negotiable Instruments) Wakala/ Joala Factoring Wakala/ Joala/ Bai al-Dayn Administration of Property, Estates and Wills Wakala Hiring of Strong Boxes Amana/ Wakala Demand Draft, Travellerà ¢Ã¢â€š ¬Ã¢â€ž ¢s Cheques Ujr/ Joala ATM Service, Standing Instruction, Telebanking Ujr Source: Obaidullah, 2005 Financial Crisis and the Islamic Banking Previous Literature The study of bank profitability is an important tool to evaluate bank operation by examining the different factors affecting bank profitability and using these factors for management planning and strategic analysis. In the last four decades, many studies have been conducted to study both bank profitability and the determinants of bank profitability either for particular country or for a panel of countries. These studies normally divide these factors into internal factors and external factors. Internal factors represent the bank-specific characteristics such as bank size, liquidity structure; liabilitiesà ¢Ã¢â€š ¬Ã‚ ¦etc while external factors can be macroeconomic factors such as inflation and GDP growth or Country-specific regulations rules and practices. In the area of banking profitability, many studies have been conducted to investigate the profitability of conventional banks while only few were conducted in the field of Islamic banking. In this chapter, we will review these studies for conventional banking first and then will focus on studies in the Islamic banking field. Then we will cover the conceptual framework of this research. Conventional Banking Different studies have been conducted in the field of conventional banking profitability. Short (1979), Bourke (1989), Molyneux and Thornton (1992), Goddard, Molyneux, and Wilson (2004), Peters et al. (2004) are some of the researchers in the field. Short (1979) is one of the early scholars who studied the relationship between banking profit rates and concentration for sixty banks in Canada, Western Europe and Japan during the 1970à ¢Ã¢â€š ¬Ã¢â€ž ¢s and he included independent variables including government ownership and concentration by using H index to quantify concentration. Results showed that the government ownership impact on profitability varied throughout the countries studied but expressed an overall negative relationship. He also found evidence that indicated higher concentration rates lead to higher profit rates (Short, 1979). Bourke (1989) also compared concentration to bank profitability but included other determinants. Bourke (1989) covered ninety banks in Australia, Europe, and North America between 1972 and 198 and examined different internal and external factors: internal factors such as staff expenses, capital ratio, liquidity ratio, and loans to deposit ratio; external factors such as regulation, size of economies of scale, competition, concentration, growth in market, interest rate, government ownership, and market power. His results show that increase in government ownership leads to lower profitability in banking. He also found that concentration, interest rates, and money supply are positively related to profitability along with capital and reserves of total assets as well as cash and bank deposits of total assets. Bourke adds that well capitalized banks enjoy cheaper access to sources of funds as they are less risky than less capitalized banks (Bourke, 1989). Later, Molyneux and Thornton (1992) studied the determinants of European banks profitability. The paper examined eighteen counties in Europe between 1986 and 1989. This paper replicated Bourkeà ¢Ã¢â€š ¬Ã¢â€ž ¢s (1989) work by using internal and external determinants of bank profitability. However, Molyneux and Thornton (1992) results showed that government ownership expresses a positive coefficient with return on capital (profitability) which contradicts with Bourkeà ¢Ã¢â€š ¬Ã¢â€ž ¢s findings. Other results were similar to Bourkeà ¢Ã¢â€š ¬Ã¢â€ž ¢s, showing that concentration, interest rate, and money supply were positively related to bank profitability (Molyneux and Thornton, 1992). In one of the recent papers on bank profitability on European banks, Goddard, Molyneux, and Wilson (2004) shows similar findings to the paper by Molyneux and Thornton (1992). It investigates the determinants of profitability in six European countries and it covered 665 banks between 1992 and 1998. The study used cross-sectional and dynamic panel models. The variables used in the regression analysis were ROE, the logarithmic of total assets, Off Balance Sheet (OBS) dividends, Capital to Asset Ratio (CAR). The results from both models were similar: evidence reveals that there is a positive relationship between size (total assets) and profitability. Meanwhile, OBS appears to have a positive relationship with profitability for UK but neutral or negative for other European countries. Moreover, results also state that CAR has a positive relationship with profitability. Furthermore, the paper touched on ownership type by indicating that there is high competition in banking due to the fact t hat there is foreign bank involvement in domestic banks, and that profitability is not linked to ownership (Goddard, Molyneux, and Wilson, 2004). Peters et al. (2004) studied the characteristics of banks in post-war Lebanon for the years 1993 to 2000 and compared the results to a group of banks from five other countries in the Middle East including UAE, KSA, Kuwait, Bahrain and Oman for the years 1995 through 1999. They used Return on Equity (ROE) measure profitability and leverage and they employed regression models that relate bank profitability ratios to various explanatory variables. This study tests the relationships between bank profitability and size, asset portfolio composition, off-balance sheet items, ownership by a foreign bank, and the ratio of employment to assets. The results show a strong association between economic growth and bank profitability, whether measured by ROE or ROA. They found that Lebanese banks are profitable, but not as profitable as a control group of banks from five other countries located in the Middle East. Islamic Banking In the area of Islamic Banking, Bashir (2000) assessed the performance of Islamic banks in eight Middle Eastern countries. He analyzed important bank characteristics that affect the performance of Islamic banks by controlling economic and financial structure measures. The paper studied fourteen Islamic banks from Bahrain, Egypt, Jordan, Kuwait, Qatar, Sudan, Turkey, and United Arab Emirates between 1993 and 1998. To examining profitability, the paper used Non Interest Margin (NIM), Before Tax Profit (BTP), Return on Assets (ROA), and Return on Equity (ROE) as performance indicators. There were also internal and external variables: internal variables were bank size, leverage, loans, short-term funding, overhead, and ownership; external variables included macroeconomic environment, regulation, and financial market. In general, results from the study confirm previous findings and show that Islamic banks profitability is positively related to equity and loans. Consequently, if loans and equity are high, Islamic banks should be more profitable. If leverage is high and loan to assets is also large, Islamic banks will be more profitable. The results also indicate that favorable macro-economic conditions help profitability (Bashir, 2000). Hassoune (2002) examined Islamic bank profitability in an interest rate cycle. In his paper, compared ROE and ROA Volatility for both Islamic and conventional banks in three GCC region, Kuwait, Saudi Arabia, and Qatar. He states that since Islamic banking is based on profit and loss sharing, managements have to generate sufficient returns for investors given that they are not willing accept no returns (Hassoune, 2002). Bashir and Hassan (2004) studied the determinants of Islamic banking profitability covers 43 Islamic Banks between 1994 and 2001 in 21 countries. Their figures show Islamic banks to have a better capital asset ratio compared to commercial banks which means that Islamic banks are well capitalized. Also, their paper used internal and external banks characteristics to determine profitability as well as economic measures, financial structure variables, and country variables. They used, Net-non Interest Margin (NIM), which is non interest income to the bank such as, bank fees, service charges and foreign exchange to identify profitability. Other profitability indicators adopted were Before Tax Profit divided by total assets (BTP/TA), Return on Assets (ROA), and Return on Equity (ROE). Results obtained by Bashir and Hassan (2004), were similar to the Bashir (2000) results, which found a positive relationship between capital and profitability but a negative relationship between loans and profitability. Bashir and Hassan also found total assets to have a negative relationship with profitability which amazingly means that smaller banks are more profitable. In addition, during an economic boom, banks profitability seems to improve because there are fewer nonperforming loans. Inflation, on the other hand, does not have any effect on Islamic bank profitability. Finally, results also indicate that overhead expenses for Islamic banks have a positive relation with profitability which means if expenses increase, profitability also increases (Bashir and Hassan, 2004). Alkassim (2005) examined the determinants of profitability in the banking sector of the GCC countries and found that asset have a negative impact on profitability of conventional banks but have a positive impact on profitability of Islamic banks. They also observed that positive impact on profitability for conventional but have a negative impact for Islamic banking. Liu and Hung (2006) examined the relationship between service quality and long-term profitability of Taiwanà ¢Ã¢â€š ¬Ã¢â€ž ¢s banks and found a positive link between branch number and long-term profitability and also proved that average salaries are detrimental to banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ profit. Masood, Aktan and Chaudhary (2009) studied the co-integration and causal relationship between Return on Equity and Return on Assets for 12 banks in KSA for the period between 1999- 2007. For their research, the used time series model of ADF unit-root test, Johansen co-integration test, Granger causality test and graphical comparison model. They found that there are stable long run relationships between the two variables and that it is only a one-direction cause-effect relationship between ROE and ROA. The results show that ROE is a granger cause to ROA but ROA is not a granger cause to ROE that is ROE can affect ROA input but ROA does not affect the ROE in the Saudi Arabian Banking sector. Conceptual Framework Theoretical framework is a basic conceptual structure organized around a theory. It defines the kinds of variables that are going to be used in the analysis. In this research, the theoretical framework consists of seven independent variables that represent four aspects of the Bank Characteristics. Theses aspects are the Bank Size (Total Assets), Capital Structure (Equity and Tangible Equity), Liquidity (Loans and Liquid Assets) and Liabilities (Deposits and Overheads). Bank profitability is the dependent variable and two measures of bank profitability are used in this study, namely return on average equity (ROAE) and return on average assets (ROAA). Financial Crisis Internal Factors (Bank-Specific) Islamic Banking Profitability H1: Bank Size H2, H3: Capital Structure H4, H5: Liquidities H6, H7: Liabilities Return on Average Assets (ROAA) Return on Average Equity (ROAE) In this section we develop the hypothesis to be examined in this research paper. Development of Hypotheses This paper attempts to test seven hypotheses. A hypothesis is a claim or assumption about the value of a population parameter. It consists either of a suggested explanation for a phenomenon or of a reasoned proposal suggesting a possible correlation between multiple phenomena. According to Becker (1995), hypothesis testing is the process of judging which of two contradictory statements is correct. Hypothesis 1: Profitability has a positive and significant relationship with the total assets (ASSETS). Total Assets of a company represents its valuables including both tangible assets such as equipments and properties along with its intangible assets such as goodwill and patent. For banks, total assets include loans which are the basis for bank operations either through interest or interest-free practices. Total assets is used as a tool to measure the bank size; banks with higher total assets indicate bigger banks. Molyneux and el (2004) included total assets in their study and found a positive significant relationship between total assets and profitability. Therefore, total assets are expected to have positive relation with profitability which means that bigger banks are expected to be more profitable. Total assets are converted logarithmic to be more consistent with the other ratios Hypothesis 2: Profitability has a positive and significant relationship with equity to asset ratio (EQUITY). Total equity over total assets measures bankà ¢Ã¢â€š ¬Ã¢â€ž ¢s capital structure and adequate. It indicated bank ability to withstand losses and handle risk exposure with shareholders. Hassan and Bashir (2004) examined the relationship between EQUITY and bank profitability and found positive relationship. Therefore, EQUITY is included in this study and it is expected to have a positive relation with performance because well capitalized banks are less risky and more profitable (Bourke, 1989) Hypothesis 3: Profitability has a positive and significant relationship with Tangible Equity to total liabilities ratio (TNGEQTY). Tangible Equity represents the subset of shareholderà ¢Ã¢â€š ¬Ã¢â€ž ¢s equity that is not common shares and not intangible asset. Tangible Equity became very popular after the financial crisis as a measure of bank viability since it indicates of how much ownership equity owners of common stock would receive in the event of a companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s liquidation. Beltratti and Stulz (2009) examined tangible equity to liabilities in their study to examine why some banks perform better during the financial crisis and found positive and insignificant relationship between TNEQTY and bank profitability. Therefore, TNEQTY is included in this study and it is expected to have positive relationship since banks with better capital structure in since of more equity à ¢Ã¢â€š ¬Ã¢â‚¬Å" seems to perform better. Hypothesis 4: Profitability has a positive and significant relationship with the loans to assets ratio (LOANS). Total loans over total assets a liquidity ratio used that indicates how much of bank assets are tied to loans. For banks, the higher LOANS ratio means less liquidity. Demirguc-Kunt and Huizinga, (1997) found positive relationship between LOANS and bank profitability. LOANS is included in this study and anticipated to have positive relationship with profitability. Furthermore, conventional banks rely on interest-based loans while Islamic banks rely on profit and loss sharing interest-free lending. Therefore, this ratio is also used to compare the performance of interest-based loans and interest-free lending. Hypothesis 5: Profitability has a positive and significant relationship with the liquid assets to total assets ratio (LIQUID). Liquid assets include currency, deposit accounts, and negotiable instruments that can be converted easily into cash. Liquid assets to total assets ratio is a liquidity ratio that measure how easily the banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ assets can be converted into cash. Beltratti and Stulz (2009) found that LIQUID has positive and significant relation with profitability as banks with more liquid assets tend to perform better. Therefore, LIQUID is included in this study and expected to have positive relationship with profitability. Hypothesis 6: Profitability has a reverse and significant relationship with the deposits to assets ratio (DEPOSITS). Deposits to total ratio is another liquidity indicator but is considered a liability since they measure the impact of liabilities on profitability. Bashir and Hassan (2004) examined deposits in their study and found a negative relationship with profitability. Therefore, we expect that DEPOSITS to have negative relationship with profitability. Hypothesis 7: Profitability has a positive and significant relationship with the overhead to assets ratio (OVERHEAD). Overhead costs represent all bank expenses excluding interest expenses as they are considered as operations expenses. Overhead over total assets is a liability ratio that measures the operation efficiency of the bank. Alkassim (2005) included OVERHEAD in his research and found positive relationship to profitability. Therefore, OVERHEAD is included in this study and expected to have positive relationship to profitability. Chapter 3: Methods Data Sample From 2006 to 2008 2009 Country Islamic Banks Conventional Banks Islamic Banks Conventional Banks Bahrain 12 14 5 5 Saudi Arabia 2 9 1 7 Qatar 3 5 2 4 Kuwait 4 14 1 3 Oman 0 6 0 3 UAE 6 17 0 7 Total 27 65 9 29 The data used in this analysis were extracted from Bankscope data for all Islamic and Conventional Banks in the GCC for the period from 2006 to 2009. Using Bankscope has many advantages: it has information for over 30,000 banks, plus the accounting information is presented in a standardized format. Therefore, the accounting information of Islamic Banking is adjusted to be comparable with accounting information of conventional banks. The data used for this study are from a pooled time-series cross-sectional data. The data are taken from various countries. Sample period for this study is from 2002 to 2007. Cross-sectional data provide information on variables for a given period of time. While time series data give information about variables over a number of periods of time. The data for internal variables are obtained from BankScope database which is compiled by International Bank Credit Analysis Limited (IBCA). Using BankScope has two advantages. Firstly, it has information for 11,000 banks, accounting for about 90% of total assets in each country. Secondly, the accounting information at the bank level is presented in standardized formats, after adjustments for differences in accounting and reporting standards. The data for external variables are obtained from World Economic Outlook 2008 database, published by International Monetary Fund (IMF). A total of 60 Islamic banks from 18 countries were chosen in this study. The selected banks are those which are classified as Islamic bank in BankScope database. The Islamic banks have available data for at least one year between 2002 and 2007. This yielded an unbalanced panel data consisting of 260 observations. However, after eliminating cases with missing data, only 155 observations of balanced panel data are left. Variable Definition Independent Variable: Profitability Measures There are many ratios that have been used by researchers to measure bank profitability but the two most often used ratios are the return on assets (ROA) and the return on equity (ROE) (Iqbal et al., 2005). Return on Assets Impact of Internal Factors on Islamic Banking Impact of Internal Factors on Islamic Banking Introduction to the Subject Background of the Subject General Objective The purpose of this study is to examine how the internal factors of the Islamic Banking affected their performance before, during and after the financial crisis in the GCC in comparison to the conventional banking in the same area. Research Questions This study aims to answer the following questions: How did the financial crisis affect the profitability of Islamic Banks in comparison to Conventional Banks? What are the internal factors (bank specific characteristics) that influence the profitability of Islamic banking for every year from 2006 à ¢Ã¢â€š ¬Ã¢â‚¬Å" 2009? Did these factors have the same impact on the profitability of Islamic Banking before, during and after the financial crisis? Did these internal factors influence the profitability of Islamic Banking in the same manner as of the Conventional Banking? Need for the Study Significance of the Study Assumptions of the Study Limitations of the Study Although we cannot neglect the importance of the external factors on the profitability of Islamic Banking, they were not included in this study. To understand the reason behind this decision, we need to go through the different types of external factors and how they are classified: Macroeconomic Factors Country Regulation Rules Bank Regulation Rules These factors were not included for the following reasons: Since we are examining the performance of 92 banks (27 Islamic Banks and 65 Conventional Banks) in 6 countries, the number of countries used in the study is not significant enough to study the impact of GDP and inflation accurately on Bank profitability especially when examining each year separately Country Regulation Rules as per the IMF Database, although it differs slightly for the selected countries, did not change over the period from 2006 to 2009. This means that for each bank, these factors remained constant. Data about Bank Regulation Rules could not be obtained for GCC banks Delimitation of the Study This study was delaminated to the Islamic and Conventional Banks in the GCC whose data could be obtained in the Bankscope database. Chapter 2: Literature Review Overview of Islamic Banking Islamic Baking has established as an alternative to conventional interest-based banking. The first stirring of the Islamic Banking movement began in 1963 by Dr. Ahmed Alnajar in a small town in Egypt, called Mit Ghamar. Dr. Alnajar completed his education in Germany and found that it had many saving banks operating on interest. He took the idea from a savings bank in Germany and created his own small Islamic bank that was interest free. After Dr. Alnajarà ¢Ã¢â€š ¬Ã¢â€ž ¢s small bank proved successful, the establishment of other Islamic banks followed. In 1971, the Nasser Social Bank was founded in Egypt with the objective of lending out money as a charity on the basis of a profit and loss sharing system and helping people in need. And in 1975, the idea of Islamic banking spread to other Islamic regions such Dubai Islamic bank in United Arab Emirates and The Islamic Development (IDB) Bank in Jeddah, Saudi Arabia (Wilson, 1990). Even though Islamic Banking has only been around for thirty years and is still in an evolving stage, Islamic Banking is the fastest growing segment of the credit markets in the Muslim countries. In 2009, Assets held by Islamic Banking banks rose by 28.6 percent to $822bn from $639bn in 2008, according to The Bankerà ¢Ã¢â€š ¬Ã¢â€ž ¢s à ¢Ã¢â€š ¬Ã…“Top 500 Islamic Financial Institutionsà ¢Ã¢â€š ¬? survey while conventional banks posted annual asset growth of just 6.8 percent. Furthermore, GCC states accounted for $353.2bn or 42.9 percent of the global aggregate, while Iran remained the largest single market for Shariah-compliant assets, accounting for 35.6 percent of the total. Source: Asian Banker Research, 2009 Finally, Islamic banking operations are not limited to Islamic countries but are spreading throughout the world. One reason is the growing trend toward transcending national boundaries, and unifying Muslims into a political and economic entity that could have a significant impact on the pattern of world trade (Abdel-Magid, 1981). Islamic Banking Rules and Principles Islamic banking rules are according to the Islamic Shariah derived from the Quran and prophet Mohamedà ¢Ã¢â€š ¬Ã¢â€ž ¢s sayings. The three main practices that are clearly prohibited in the Quran and the prophetà ¢Ã¢â€š ¬Ã¢â€ž ¢s sayings are, Riba (Interest), Gharar (Uncertainty), and Maysir (Betting). Prohibition of Riba or any predetermined or fixed rate in financial institutions is the most important factor in the Islamic principles pertaining to banking. As stated in the Quran à ¢Ã¢â€š ¬Ã…“Allah forbids ribaà ¢Ã¢â€š ¬?. Riba means an increase and under Shariah the term refers to the premium that must be paid by the borrower to the lender along with the principle amount as a condition for the loan (Omar and Abdel, 1996). Gharar occurs when the purchaser does not know what has been bought and the seller does not know what has been sold. In other words, trading should be clear by stating in a contract the existing actual object(s) to be sold, with a price and time to eliminate confusion and uncertainty between the buyers and the sellers. Maisir is considered in Islam as one form of injustice in the appropriation of othersà ¢Ã¢â€š ¬Ã¢â€ž ¢ wealth. The act of gambling, sometimes referred to betting on the occurrence of a future event, is prohibited and no reward accrues for the employment of spending of wealth that an individual may gain through means of gambling. Under this prohibition, any contract entered into, should be free from uncertainty, risk and speculation. Contracting parties should have perfect knowledge of the counter values intended to be exchanged as a result of their transactions. Therefore, and according to Ahmed and Hassan (2007), the principles of Islamic banking and finance enshrined from al-Qurà ¢Ã¢â€š ¬Ã¢â€ž ¢an and Prophet Mohamedà ¢Ã¢â€š ¬Ã‹Å"s Sayings can be summed up as follows: Any predetermined payment over and above the actual amount of principal is prohibited. The lender must share in the profits or losses arising out of the enterprise for which the money was lent. Making money from money is not acceptable in Islam. Gharar (deception) and Maisir (gambling) are also prohibited. Investments should only support practices or products that are not forbidden or even discouraged by Islam. Islamic Banking Products Islamic Banking products have to be done according to Islamic rules and principles, based on profit and loss sharing as well as avoiding interest. According to BNM statistics 2007, Al Bai Bithaman Ajil financing is the most common in Islamic Banking. There are a lot of Islamic Banking products; however there are some famous Islamic products that will be discussed in this section. Al Bai Bithaman Ajil /BBA This involves the credit sale of goods on a deferred payment basis. In BAA, the Islamic bank will purchase certain assets on a deferred payment basis and then sell the goods back to the customer at an agreed price including some margin or profit. The customer will make payment by installments over an agreed period. A fixed rate BBA is a powerful hedging tool against interest rates (Rosly, 1999). Murabahah Murabahah is a contract of sale. The Islamic Bank acts as a middle man and purchases the goods requested by the customer. The bank will later sell the goods to the customer in a sale and purchase agreement, whereby the lender re-sales to the borrower at a higher price agreed on by both parties. These are more for short term financing Mudharabah According to Kettel (2006), Mudharabah is a basic principle of profit and loss, where instead of lending money at a fixed rate return, the banker forms a partnership with the borrower, thereby sharing in a ventureà ¢Ã¢â€š ¬Ã¢â€ž ¢s profit and loss. Mudharabah is an agreement between the lender and entrepreneur, whereby the lender agrees to finance the project on a profit sharing basis according to a predetermined ratio agreed by both parties concerned. If there are any losses the lender will bear all the losses. Musharakah Musharakah means partnership whereby the Islamic institution provides the capital needed by the customer with the understanding that they both share the profit and loss according to a formula agreed before the business transaction is transacted. In Musharakah all partners are entitled to participate in the management of the investment but it is not compulsory. Musharakah can help in providing financing for large investments in modern economic activities Al Ijarah Ijarah means meaning to give something on a rental basis. In Ijarah, the bank acquires ownership based on the promise and leases back to the client for a given period. The customer pays the rental but the ownership still remains with the bank or lender. As the ownership remains with the lessor (bank), it continues to give the service for which it was rented. Under this contract, the lessor has the right to re-negotiate the quantum of the lease payment at every agreed interval to ensure rental remains in line with the market rates (Hume, 2004). Wadiah Wadiah is a trust contract and the bank provides gift (hibah) and various types of benefits to the customer. This is exactly like a normal conventional savings account. Istisna Istisna allows one party buys the goods and the other party undertakes to manufacture them according to agreed specifications. Normally, Istisna is used to finance construction and manufacturing projects. Salam Salam is defined as the forward purchase of specified goods with full forward payment. This contract is normally used for financing agricultural production. According to Hassan (2004), Salam based future contracts for agricultural commodities, supported by Islamic Banks, can help to overcome the agricultural financial problems Table 2.1 lists the products of conventional banking and their correspondent products in Islamic Banking. Deposit Services Current Deposit Wadiah Wad Dhamana / Qard Hasan Savings Deposit Wadiah Wad Dhamana / Mudaraba General Investment deposit Mudaraba Special Investment deposit Mudaraba Retail / Consumer Banking Housing Property Finance BBA / Ijara wa Iktina /Diminishing Musharaka Hire Purchase Ijara Thumma Al-Bai Share Financing BBA / Mudaraba / Musharaka Working Capital Financing Murabahah/ Bai Al-Einah/ Tawarruq Credit Card Bai Al-Einah/ Tawarruq Charge Card Qard Hasan Corporate Banking/ Trade Finance Project Financing Mudaraba / Musharaka / BBA / Istisna / Ijara Letter of Credit Musharaka/ Wakala/ Murabaha Venture Capital Diminishing Mudaraba/ Musharaka Financing Syndication Musharaka + Murabaha/ Istisna / Ijara Revolving Financing Bai Al-Einah Short-term Cash Advance Bai Al-Einah/ Tawarruq Working Capital Finance Murabaha/ Salam/ Istijrar Letter of Credit Murabaha Letter of Guarantee Kafala + Ujr Leasing Ijara Export/ Import Finance Musharaka/ Salam/ Murabaha Work-in-Progress, Construction Finance Istisna Bill Discounting Bai al-Dayn Underwriting, Advisory Services Ujr Treasury / Money Market Investment Products Sell buy-back agreements Bai al-Einah Islamic Bonds Mudaraba / Mushraka + BBA / Istisna / Ijara Government Investment Issues Qard Hasan/ Salam/ Mudaraba Other Products Services Stock-Broking Services Murabaha/ Wakala/ Joala Funds Transfer (Domestic Foreign) Wakala/ Joala Safe-Keeping Collection (Negotiable Instruments) Wakala/ Joala Factoring Wakala/ Joala/ Bai al-Dayn Administration of Property, Estates and Wills Wakala Hiring of Strong Boxes Amana/ Wakala Demand Draft, Travellerà ¢Ã¢â€š ¬Ã¢â€ž ¢s Cheques Ujr/ Joala ATM Service, Standing Instruction, Telebanking Ujr Source: Obaidullah, 2005 Financial Crisis and the Islamic Banking Previous Literature The study of bank profitability is an important tool to evaluate bank operation by examining the different factors affecting bank profitability and using these factors for management planning and strategic analysis. In the last four decades, many studies have been conducted to study both bank profitability and the determinants of bank profitability either for particular country or for a panel of countries. These studies normally divide these factors into internal factors and external factors. Internal factors represent the bank-specific characteristics such as bank size, liquidity structure; liabilitiesà ¢Ã¢â€š ¬Ã‚ ¦etc while external factors can be macroeconomic factors such as inflation and GDP growth or Country-specific regulations rules and practices. In the area of banking profitability, many studies have been conducted to investigate the profitability of conventional banks while only few were conducted in the field of Islamic banking. In this chapter, we will review these studies for conventional banking first and then will focus on studies in the Islamic banking field. Then we will cover the conceptual framework of this research. Conventional Banking Different studies have been conducted in the field of conventional banking profitability. Short (1979), Bourke (1989), Molyneux and Thornton (1992), Goddard, Molyneux, and Wilson (2004), Peters et al. (2004) are some of the researchers in the field. Short (1979) is one of the early scholars who studied the relationship between banking profit rates and concentration for sixty banks in Canada, Western Europe and Japan during the 1970à ¢Ã¢â€š ¬Ã¢â€ž ¢s and he included independent variables including government ownership and concentration by using H index to quantify concentration. Results showed that the government ownership impact on profitability varied throughout the countries studied but expressed an overall negative relationship. He also found evidence that indicated higher concentration rates lead to higher profit rates (Short, 1979). Bourke (1989) also compared concentration to bank profitability but included other determinants. Bourke (1989) covered ninety banks in Australia, Europe, and North America between 1972 and 198 and examined different internal and external factors: internal factors such as staff expenses, capital ratio, liquidity ratio, and loans to deposit ratio; external factors such as regulation, size of economies of scale, competition, concentration, growth in market, interest rate, government ownership, and market power. His results show that increase in government ownership leads to lower profitability in banking. He also found that concentration, interest rates, and money supply are positively related to profitability along with capital and reserves of total assets as well as cash and bank deposits of total assets. Bourke adds that well capitalized banks enjoy cheaper access to sources of funds as they are less risky than less capitalized banks (Bourke, 1989). Later, Molyneux and Thornton (1992) studied the determinants of European banks profitability. The paper examined eighteen counties in Europe between 1986 and 1989. This paper replicated Bourkeà ¢Ã¢â€š ¬Ã¢â€ž ¢s (1989) work by using internal and external determinants of bank profitability. However, Molyneux and Thornton (1992) results showed that government ownership expresses a positive coefficient with return on capital (profitability) which contradicts with Bourkeà ¢Ã¢â€š ¬Ã¢â€ž ¢s findings. Other results were similar to Bourkeà ¢Ã¢â€š ¬Ã¢â€ž ¢s, showing that concentration, interest rate, and money supply were positively related to bank profitability (Molyneux and Thornton, 1992). In one of the recent papers on bank profitability on European banks, Goddard, Molyneux, and Wilson (2004) shows similar findings to the paper by Molyneux and Thornton (1992). It investigates the determinants of profitability in six European countries and it covered 665 banks between 1992 and 1998. The study used cross-sectional and dynamic panel models. The variables used in the regression analysis were ROE, the logarithmic of total assets, Off Balance Sheet (OBS) dividends, Capital to Asset Ratio (CAR). The results from both models were similar: evidence reveals that there is a positive relationship between size (total assets) and profitability. Meanwhile, OBS appears to have a positive relationship with profitability for UK but neutral or negative for other European countries. Moreover, results also state that CAR has a positive relationship with profitability. Furthermore, the paper touched on ownership type by indicating that there is high competition in banking due to the fact t hat there is foreign bank involvement in domestic banks, and that profitability is not linked to ownership (Goddard, Molyneux, and Wilson, 2004). Peters et al. (2004) studied the characteristics of banks in post-war Lebanon for the years 1993 to 2000 and compared the results to a group of banks from five other countries in the Middle East including UAE, KSA, Kuwait, Bahrain and Oman for the years 1995 through 1999. They used Return on Equity (ROE) measure profitability and leverage and they employed regression models that relate bank profitability ratios to various explanatory variables. This study tests the relationships between bank profitability and size, asset portfolio composition, off-balance sheet items, ownership by a foreign bank, and the ratio of employment to assets. The results show a strong association between economic growth and bank profitability, whether measured by ROE or ROA. They found that Lebanese banks are profitable, but not as profitable as a control group of banks from five other countries located in the Middle East. Islamic Banking In the area of Islamic Banking, Bashir (2000) assessed the performance of Islamic banks in eight Middle Eastern countries. He analyzed important bank characteristics that affect the performance of Islamic banks by controlling economic and financial structure measures. The paper studied fourteen Islamic banks from Bahrain, Egypt, Jordan, Kuwait, Qatar, Sudan, Turkey, and United Arab Emirates between 1993 and 1998. To examining profitability, the paper used Non Interest Margin (NIM), Before Tax Profit (BTP), Return on Assets (ROA), and Return on Equity (ROE) as performance indicators. There were also internal and external variables: internal variables were bank size, leverage, loans, short-term funding, overhead, and ownership; external variables included macroeconomic environment, regulation, and financial market. In general, results from the study confirm previous findings and show that Islamic banks profitability is positively related to equity and loans. Consequently, if loans and equity are high, Islamic banks should be more profitable. If leverage is high and loan to assets is also large, Islamic banks will be more profitable. The results also indicate that favorable macro-economic conditions help profitability (Bashir, 2000). Hassoune (2002) examined Islamic bank profitability in an interest rate cycle. In his paper, compared ROE and ROA Volatility for both Islamic and conventional banks in three GCC region, Kuwait, Saudi Arabia, and Qatar. He states that since Islamic banking is based on profit and loss sharing, managements have to generate sufficient returns for investors given that they are not willing accept no returns (Hassoune, 2002). Bashir and Hassan (2004) studied the determinants of Islamic banking profitability covers 43 Islamic Banks between 1994 and 2001 in 21 countries. Their figures show Islamic banks to have a better capital asset ratio compared to commercial banks which means that Islamic banks are well capitalized. Also, their paper used internal and external banks characteristics to determine profitability as well as economic measures, financial structure variables, and country variables. They used, Net-non Interest Margin (NIM), which is non interest income to the bank such as, bank fees, service charges and foreign exchange to identify profitability. Other profitability indicators adopted were Before Tax Profit divided by total assets (BTP/TA), Return on Assets (ROA), and Return on Equity (ROE). Results obtained by Bashir and Hassan (2004), were similar to the Bashir (2000) results, which found a positive relationship between capital and profitability but a negative relationship between loans and profitability. Bashir and Hassan also found total assets to have a negative relationship with profitability which amazingly means that smaller banks are more profitable. In addition, during an economic boom, banks profitability seems to improve because there are fewer nonperforming loans. Inflation, on the other hand, does not have any effect on Islamic bank profitability. Finally, results also indicate that overhead expenses for Islamic banks have a positive relation with profitability which means if expenses increase, profitability also increases (Bashir and Hassan, 2004). Alkassim (2005) examined the determinants of profitability in the banking sector of the GCC countries and found that asset have a negative impact on profitability of conventional banks but have a positive impact on profitability of Islamic banks. They also observed that positive impact on profitability for conventional but have a negative impact for Islamic banking. Liu and Hung (2006) examined the relationship between service quality and long-term profitability of Taiwanà ¢Ã¢â€š ¬Ã¢â€ž ¢s banks and found a positive link between branch number and long-term profitability and also proved that average salaries are detrimental to banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ profit. Masood, Aktan and Chaudhary (2009) studied the co-integration and causal relationship between Return on Equity and Return on Assets for 12 banks in KSA for the period between 1999- 2007. For their research, the used time series model of ADF unit-root test, Johansen co-integration test, Granger causality test and graphical comparison model. They found that there are stable long run relationships between the two variables and that it is only a one-direction cause-effect relationship between ROE and ROA. The results show that ROE is a granger cause to ROA but ROA is not a granger cause to ROE that is ROE can affect ROA input but ROA does not affect the ROE in the Saudi Arabian Banking sector. Conceptual Framework Theoretical framework is a basic conceptual structure organized around a theory. It defines the kinds of variables that are going to be used in the analysis. In this research, the theoretical framework consists of seven independent variables that represent four aspects of the Bank Characteristics. Theses aspects are the Bank Size (Total Assets), Capital Structure (Equity and Tangible Equity), Liquidity (Loans and Liquid Assets) and Liabilities (Deposits and Overheads). Bank profitability is the dependent variable and two measures of bank profitability are used in this study, namely return on average equity (ROAE) and return on average assets (ROAA). Financial Crisis Internal Factors (Bank-Specific) Islamic Banking Profitability H1: Bank Size H2, H3: Capital Structure H4, H5: Liquidities H6, H7: Liabilities Return on Average Assets (ROAA) Return on Average Equity (ROAE) In this section we develop the hypothesis to be examined in this research paper. Development of Hypotheses This paper attempts to test seven hypotheses. A hypothesis is a claim or assumption about the value of a population parameter. It consists either of a suggested explanation for a phenomenon or of a reasoned proposal suggesting a possible correlation between multiple phenomena. According to Becker (1995), hypothesis testing is the process of judging which of two contradictory statements is correct. Hypothesis 1: Profitability has a positive and significant relationship with the total assets (ASSETS). Total Assets of a company represents its valuables including both tangible assets such as equipments and properties along with its intangible assets such as goodwill and patent. For banks, total assets include loans which are the basis for bank operations either through interest or interest-free practices. Total assets is used as a tool to measure the bank size; banks with higher total assets indicate bigger banks. Molyneux and el (2004) included total assets in their study and found a positive significant relationship between total assets and profitability. Therefore, total assets are expected to have positive relation with profitability which means that bigger banks are expected to be more profitable. Total assets are converted logarithmic to be more consistent with the other ratios Hypothesis 2: Profitability has a positive and significant relationship with equity to asset ratio (EQUITY). Total equity over total assets measures bankà ¢Ã¢â€š ¬Ã¢â€ž ¢s capital structure and adequate. It indicated bank ability to withstand losses and handle risk exposure with shareholders. Hassan and Bashir (2004) examined the relationship between EQUITY and bank profitability and found positive relationship. Therefore, EQUITY is included in this study and it is expected to have a positive relation with performance because well capitalized banks are less risky and more profitable (Bourke, 1989) Hypothesis 3: Profitability has a positive and significant relationship with Tangible Equity to total liabilities ratio (TNGEQTY). Tangible Equity represents the subset of shareholderà ¢Ã¢â€š ¬Ã¢â€ž ¢s equity that is not common shares and not intangible asset. Tangible Equity became very popular after the financial crisis as a measure of bank viability since it indicates of how much ownership equity owners of common stock would receive in the event of a companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s liquidation. Beltratti and Stulz (2009) examined tangible equity to liabilities in their study to examine why some banks perform better during the financial crisis and found positive and insignificant relationship between TNEQTY and bank profitability. Therefore, TNEQTY is included in this study and it is expected to have positive relationship since banks with better capital structure in since of more equity à ¢Ã¢â€š ¬Ã¢â‚¬Å" seems to perform better. Hypothesis 4: Profitability has a positive and significant relationship with the loans to assets ratio (LOANS). Total loans over total assets a liquidity ratio used that indicates how much of bank assets are tied to loans. For banks, the higher LOANS ratio means less liquidity. Demirguc-Kunt and Huizinga, (1997) found positive relationship between LOANS and bank profitability. LOANS is included in this study and anticipated to have positive relationship with profitability. Furthermore, conventional banks rely on interest-based loans while Islamic banks rely on profit and loss sharing interest-free lending. Therefore, this ratio is also used to compare the performance of interest-based loans and interest-free lending. Hypothesis 5: Profitability has a positive and significant relationship with the liquid assets to total assets ratio (LIQUID). Liquid assets include currency, deposit accounts, and negotiable instruments that can be converted easily into cash. Liquid assets to total assets ratio is a liquidity ratio that measure how easily the banksà ¢Ã¢â€š ¬Ã¢â€ž ¢ assets can be converted into cash. Beltratti and Stulz (2009) found that LIQUID has positive and significant relation with profitability as banks with more liquid assets tend to perform better. Therefore, LIQUID is included in this study and expected to have positive relationship with profitability. Hypothesis 6: Profitability has a reverse and significant relationship with the deposits to assets ratio (DEPOSITS). Deposits to total ratio is another liquidity indicator but is considered a liability since they measure the impact of liabilities on profitability. Bashir and Hassan (2004) examined deposits in their study and found a negative relationship with profitability. Therefore, we expect that DEPOSITS to have negative relationship with profitability. Hypothesis 7: Profitability has a positive and significant relationship with the overhead to assets ratio (OVERHEAD). Overhead costs represent all bank expenses excluding interest expenses as they are considered as operations expenses. Overhead over total assets is a liability ratio that measures the operation efficiency of the bank. Alkassim (2005) included OVERHEAD in his research and found positive relationship to profitability. Therefore, OVERHEAD is included in this study and expected to have positive relationship to profitability. Chapter 3: Methods Data Sample From 2006 to 2008 2009 Country Islamic Banks Conventional Banks Islamic Banks Conventional Banks Bahrain 12 14 5 5 Saudi Arabia 2 9 1 7 Qatar 3 5 2 4 Kuwait 4 14 1 3 Oman 0 6 0 3 UAE 6 17 0 7 Total 27 65 9 29 The data used in this analysis were extracted from Bankscope data for all Islamic and Conventional Banks in the GCC for the period from 2006 to 2009. Using Bankscope has many advantages: it has information for over 30,000 banks, plus the accounting information is presented in a standardized format. Therefore, the accounting information of Islamic Banking is adjusted to be comparable with accounting information of conventional banks. The data used for this study are from a pooled time-series cross-sectional data. The data are taken from various countries. Sample period for this study is from 2002 to 2007. Cross-sectional data provide information on variables for a given period of time. While time series data give information about variables over a number of periods of time. The data for internal variables are obtained from BankScope database which is compiled by International Bank Credit Analysis Limited (IBCA). Using BankScope has two advantages. Firstly, it has information for 11,000 banks, accounting for about 90% of total assets in each country. Secondly, the accounting information at the bank level is presented in standardized formats, after adjustments for differences in accounting and reporting standards. The data for external variables are obtained from World Economic Outlook 2008 database, published by International Monetary Fund (IMF). A total of 60 Islamic banks from 18 countries were chosen in this study. The selected banks are those which are classified as Islamic bank in BankScope database. The Islamic banks have available data for at least one year between 2002 and 2007. This yielded an unbalanced panel data consisting of 260 observations. However, after eliminating cases with missing data, only 155 observations of balanced panel data are left. Variable Definition Independent Variable: Profitability Measures There are many ratios that have been used by researchers to measure bank profitability but the two most often used ratios are the return on assets (ROA) and the return on equity (ROE) (Iqbal et al., 2005). Return on Assets