Depilacion Masculina

Universidad Interamericana de Puerto Rico Recinto Bayamon Bienestar y Calidad de Vida La depilacion Masculina Alexander Rosa Rosa Y00224459 Bienestar y Calidad de Vida EGEF 3000 Prof. Carlos J. Santiago Bibiloni Introduccion La depilacion masculina es un tema que hoy puede abordarse sin problema, con total confianza. Cada vez son mas los hombres que acuden a este tipo de proceso ya sea por razones esteticas, higiene o deportivas. No obstante hay diferentes tipos de depilacion, entre ellas estan la depilacion con, ceras, electrica, cremas, cuchillas, pinzas, foto depilacion y laser que es mas famosa del siglo XXI. Siempre se debe consultar a su medico dermatologo para ver cual de las alternativas de depilacion es la mas segura para su piel. Segun el articulo â€Å"En boga la depilacion masculina†, de la Revista Contorno desde hace algun tiempo los hombres estan optando por deshacerse de el vello corporal y lo hacen sometiendose a la depilacion laser, esto por razones esteticas como higienicas. Los hombres que mas usan este servicio de depilacion son los ciclistas, nadadores, fisiculturistas, bailarines, modelos o cualquier hombre que le moleste el vello en exceso o el vello que le provoca mucha transpiracion. Segun una encuesta de la revista Men’s Fitness, â€Å"si los hombres pudieran cambiar una parte de sus cuerpos, el 54. 9% cambiaria sus foliculos capilares mas que sus musculos† (Clayton, 2008  ¶ 1). Las zonas que mas demandadas por los hombres para ser depiladas por laser son las siguientes (de mayor a menor importancia): zona inferior de la barba, espalda y hombros, torax y abdomen, entrecejo, orejas, manos, pomulos y otras mas como piernas, brazos, nalgas†¦ Como menciona este articulo, la depilacion laser es un tratamiento que se aplica de acuerdo el caso. Este procedimiento dirige el haz de una luz continua que actua por foto termolisis selectiva: se trata de una longitud de onda que atraviesa las capas superficiales de la piel y que es absorbida por la melanina (pigmento presente en todo tipo de vello salvo en las canas y el vello rubio), la cual al absorber la energia luminosa se calienta provocando la destruccion de la matriz del vello y del foliculo piloso. Es un metodo rapido y comodo que consigue una depilacion duradera y en muchos casos definitiva. Este tipo de depilacion es efectiva tanto para hombres como mujeres y se puede utilizar en casi todas las partes del cuerpo. Por ejemplo, no se puede realizar en la parte interna de la ceja, por ser poco seguro para el globo ocular. En las zonas en donde que se consiguen mejores resultados en los hombres son la espalda, el torax y la barba. Muchos varones se aplican varias sesiones de este tratamiento para perder densidad en su barba y no sufrir irritacion al afeitarse. Es importante que la depilacion laser en la barba se haga de forma cuidadosa. En cada sesion de laser el paciente pierde un porcentaje de vello que no vuelve a salir nunca, ahora bien, un varon joven mientras tiene sus niveles de hormonas masculinas alto, tiene un estimulo continuo de crecimiento de vello en las zonas androgenodependientes, entre ellas, la barba. En este caso, una vez finalizado el tratamiento, necesitaria sesiones de repaso cada cierto tiempo para poder mantenerse totalmente depilado en esa zona. Para mejores resultados de una depilacion laser es si se tienen la piel clara (con poca melanina) y pelo oscuro. ?Motivo? Porque la melanina es la que absorbe la energia luminica y se calienta. Asi, la piel se calienta poco y el vello mucho, que es lo que interesa. Si tienes la piel y los pelos oscuros o claros, o la piel oscura y el pelo claro, tampoco hay problema, pero hay que adoptar precauciones. Asi como es una buena solucion, tambien hay que tener en cuenta que no todo el mundo puede hacerse la misma por que podria causarle algun dano. Contra quien esta contraindicada esta manera de depilacion laser, a personas con Acne severo, soriasis activa, herpes simple activo, infeccion de cualquier tipo y fiebre, diabetes mellitas, epilepsia, condiciones que requieran tratamiento. Es importante que a la hora de elegir un centro de depilacion laser, hay que fijarse en la experiencia acumulada, utilizacion de equipos de ultima generacion, que sea un centro autorizado por sanidad y con profesionales medicos especializados en estetica. Opinion La depilacion masculina hasta hace algunos anos era algo del cual no se hablaba mucho y se categorizaba a las personas que lo hacian como personas gay. Desde que comenzo la moda del metrosexualismo hace algun tiempo se comenzo a ver que algunos iconos de la moda como actores, cantantes etc. omenzaron hacer este tipo de cosas que presentan a un hombre moderno y mas preocupado por su salud e higiene, entre estas opciones esta el que nos depilamos alguna parte del cuerpo de la cual nos pudiera causar alguna molestia, como la barba, axilas o piernas. En mi opinion no veo de malo que nosotros los hombres nos depilemos alguna parte de nuestro cuerpo ya que esto nos ayuda a mantener una mejor higiene y apariencia. Algunos ejemplos que tenemos de celebridades son Don Omar y Daddy Yankee que se depilan las cejas para que luzcan menos abundantes. Esto es opinion y es una decision personal de cada cual. Hoy en dia las mujeres se fijan mucho a este tipo de cosas, las cuales en estos ultimos tiempos a muchas de ellas les gusta tener a su lado una persona que mantenga una buena apariencia e higiene a traves de la depilacion a traves de cualquiera de sus alternativas. Referencias Revista Contorno. (2008, Verano). En boga la depilacion masculina. Recuperado el 20 de febrero de 2010 desde: http://revistacontorno. com/articles/depilacion. htm Rosa, E. (2009, 28 de abril). Auge en la depilacion masculina. Recuperado el 0 de febrero de 2010 desde: http://www. primerahora. com/diario/noticia/moda/vive a_tu_manera/auge_en_la_depilacion_masculina/293374 Clayton, V. (2008, Verano). Is Hairless More?. Recuperado el 21 de febrero 2010 desde: http://www. mensfitness. com/lifestyle/mens_grooming/33 Redaccion Mujer,(2005, 23 de junio) Diferentes tipos de Depilacion. Recuperado el 20 de febrero 2010 desde: http://mujer. orange. es/moda y_belleza /cuerpo_y mente/1270_1. html

No Texting While Driving

Do you own a cellophane that you use on a dally basis? If yes, then think about where and when you make use of it. At work? At home? While cooking? Any free time that you can get your hands on your phone? What about when you're DRIVING? Because cell phones have become such a necessity in the world that we live in, people cannot go for long periods of time without turning to them to text, check Faceable or make a call. This impairs our Judgment and we don't always pay attention to the danger we put ourselves In when using cell phones.When the driver takes his/her eyes off the road to complete another task, almost all of the focus needed for safety is compromised. This is even more evident when he/she decides to read a text message and respond to it. This leads to a lack of visual focus on the road, one or both hands off the wheel and the mind thinking about the conversation on the phone instead of the surroundings of the vehicle: â€Å"For example, studies using a naturalistic method ology suggested that relative to interacted drivers, those drivers who text are 23 times as likely to crash,† (Wilson, Stepson).All of these factors add up to the formula of danger and disaster, which can lead to extremely brutal and even fatal accidents. Different people and organizations have taken it upon themselves to raise awareness about the dangers of testing and driving. A great example of this is the At&t 90 second documentary. It tells three different stories in which three different people were killed because of testing and driving. The stories were told by the family members of those who were killed. Two of the tragedies included the drivers who were testing and driving to be killed.A third included a car hitting a man on a bicycle because the driver was testing while driving (â€Å"Testing While Driving 90 Sec Documentary Preview'). These are personal stories being told by real people who have been affected by the negligent acts of the drivers behind the wheel. T hey hold a lot of power In them because It makes the audience think about their own lives and how they would feel If they were put in the same situation. The â€Å"No Testing while Driving† campaign Is necessary because there are constantly headlines in the news about the fatalities due to testing while driving.The communicators are the families of those who have suffered and experienced the pain caused by the minor act. Their loved ones faced untimely deaths, which could have been avoided. They are trying to tell the rest of the world that no text message is worth dying over. They have been through the worst kind of pain and there Is no coming back from It. They will always feel that emptiness Inside of them. The audience is anyone and everyone that owns a cellophane and drives a vehicle. Everyone at one point has sent a text message while driving.People think that Just cause they were successful once, that they can do it again and not worry about losing focus while driving. This is not the case. It is also why we need to continue sending these messages to everyone to avoid such accidents. Cellophane companies have made a point to make commercials for the television to audience rethink their life and what is really important. We feel sympathy for those who have suffered and perhaps try to change our habits to avoid a similar fate. The cellophane companies also appeal to ethos. This is because they are credible sources.They are selling products that are being used by millions of people around the world. Carriers such as At, Verizon, and Sprint are well known, well established and trusted throughout the world. People rely on them and therefore those companies can have a major impact on changing the way people behave behind the wheel. Furthermore, on a smaller scale, schools and colleges have started to extend the campaign towards their students. Student leaders hang posters throughout the campuses and keep coming up with new ideas to promote safe driving . One of the ideas is the thumb bands that say â€Å"TAXING KILLS.This is extremely clever because people buy the bands and wear them on their thumbs so when they are driving and decide to pick up their phone to text, they will see the message on the band and decide against it. All these strategies are bringing all of us one step closer to making the world a safer place for all of us. Individual people, families, students and major companies can all make a difference. Whether it is on a minor scale or a major scale, every little bit helps. Every life saved is a reason to celebrate. Don't text and drive. Stay alive.

Islam Worksheet Essay

When studying Islam, it is important to understand the essential elements of the faith, how they are practiced, and the distinctions among the three branches: Shiite Islam, Sunni Islam, and Sufism. Write a 1- to 2-paragraph response for each of the following directives and note where there are differences among the three branches of Islam. 1. Explain the meaning of the name, Islam. Islam is the monotheistic religion articulated by the Quran, a text considered by its adherents to be the verbatim word of God, and by the teachings and normative example (called the Sunnah and composed of Hadith) of Muhammad, [ considered by them to be the last prophet of God. An adherent of Islam is called a Muslim. 2. Explain the basic concepts of Islam. Is an unerringly monotheistic religion. It enjoins the existence of one God, his prophet Muhammad who is the Last Prophet in a long line of prophets sent throughout time and to every civilization, and the Quran as the Word of God revealed to Muhammad through the angel Jibrael. Muslims believe that God is one and incomparable and the purpose of life is to worship him and to adhere to his word, as laid down in the Quran, and in Sunnah , as closely as possible. They believe that Islam is the final, completed and universal version of a faith revealed too many prophets before; most notably Abraham, Moses and Jesus, but whose message has now been distorted. Describe the practices of Islam. They go to church in cathedral mosques (Jami’a), in which sermons are preached and congregational prayers are offered up for the reigning Sultan every Friday. Besides these there are about one hundred and eighty Muslim oratories or chapels (Mesjà ®d), to many of which schools are attached. Prayers are also frequently said at the grated windows of the little shrines or tomb-houses of celebrated welys, or saints, which are numerous in Damascus. Men of the higher classes rarely go to the mosques except on Fridays, as they can command proper places for ceremonial ablution and prayer in their own houses; but to a Muslim of the lower ranks, a large mosque which is open every day from sunrise to sunset or later, is like a second home. 3. Describe the goals of Islam. The 4. Describe the view of authority in Islam. philosophy, and the arts in the Muslim world. Write a 1- to 2-paragraph response for each of the following questions. Provide examples to illustrate your thinking. 1. What is the legal ideal in Islamic law? How does the Qur’an inform and guide Muslims in attaining this ideal? 2. What is the relationship between philosophy and theology within Islam? Is it acceptable for Muslims to hold separate philosophical and theological beliefs? 3. What artistic themes are regularly expressed in Islamic art and architecture? How are these themes explored? How has the Qur’an influenced the development of art in the Islamic world?

Database Information Systems Management Essay Example | Topics and Well Written Essays - 2500 words

Database Information Systems Management - Essay Example It is good practice during this phase of development to endure that the IS progressed to endure the desired benefits and it is bad practice to progress with the development if these desired benefits have not been realized.1 Fortunately in our project the benefits of the stakeholders had been define and benefits realized. These are important aspects of application development because they determine actions of business and IT management. An example of bad practice in developing such a system is to neglect to define who owns the IS Development. This means the individuals who are or will be responsible for all of the factors encompassing the development of the IS. These individuals include the sponsor, the IT project manager and the users. In retrospect of our project, there was some ambiguity in dedicating ownership of the IS Development. However, after defining the stakeholders the ownership and benefits objectives became clear. This is why it is good practice to set forth who owns the IS Development before progressing. It is bad practice not to define the stakeholder's role and intended benefits. e IS. A stakeholder is an individual who has an interest in the IS development and the future outcomes it. Our project the intended outcome was that SM is then able to view this Data in information format through computer-generated reports. In analysis of the outcome of the project I found that our current IS was inaccurate and did not go into much depth at all to benefit the end user Senior Management, due to lack of quality and quantity input by students. I also found that the IS itself had great potential, if the recommendations suggested were put in place. This is a good example why it is bad practice not to clearly define the benefits to all of the users, including the end users. In order to avoid these kind of mistakes and bad practices when developing an IS it is important to think of the development as a process. It is good practice to break the stakeholders down into context when developing the IS. The process includes technology, task, people and the structure or culture. These are all related to one another and it is good practice to think of stakeholder in the context of each of these steps being dependant upon each other. The technology that will be involved in the change is relative to the task to be performed. These components of the system or process depend on the stakeholders in the activity and Organisation and the structure and culture of the Organisation is important to all of the previous steps. It s bad practice to leave out any of these components and not to recognize that one has to do with the other. If any of these steps are overlooked important benefits to the stakeholders will be neglected and it will result in a faulted IS. It is good practice to think ahead and include everyone and everything you can. As the development progresses these factors can be cut down or omitted. These good practices for approaches to use when discovering stakeholders could be implemented in an IS for Emergency Medical Services (EMS). The approach that should be used would base its primary concern on patient satisfaction. An approach to

Societal Effects of the War in Iraq Essay Example | Topics and Well Written Essays - 500 words

Societal Effects of the War in Iraq - Essay Example This is a deep cause for concern because the worst people affected by war are people who are directly involved in it like soldiers and their families. It is these individuals which create a society. When they see their environment changing so dramatically, they react to it in very unpredictable ways. In the case of the Iraqi civilians, they will develop a deep rooted hatred for any American. American civilians and indeed the rest of the world have seen this situation as an inhumane attempt by their president to capture oil reserves from Iraq. To make a quantitative understanding of these problems, we can use the attitude measurement technique. Used to measure the change of an object's attitude towards another, this therefore will help us state the factors which have caused a change in the minds of the Iraqi civilians towards Americans and especially George Bush (Farris, 2002). On the other hand, it will also help us determine the causes for the American and global sympathy for the Iraqi civilians. The simple fact of the matter is that the Iraqi civilians have been through a very traumatic experience. Families have been torn apart and children and women have been murdered in huge numbers. This has created an immense form of hatred in the minds of the Iraqis. The Americans on the other hand, being a very well aware and well educated society, value human life.

Assignment Essay Example | Topics and Well Written Essays - 1750 words - 10

Assignment - Essay Example Historical research design, on the hand, entails trailing the development of a given idea and making conclusions out of such data. In causal designs, a relationship is hypothesized between two variables. In such a circumstance, there must be a one dependent variable and one or more independent variables (Turksen 2006, p. 143). The nature of such a relationship is essential for making given conclusions. For instance, a researcher may ask if one wants to explore the perceptions about a given social phenomenon and how such perceptions link to other outlooks. Besides, the researcher may ask if one wants to use a distinct field method for studying a given group and use another method for studying another subset of a population. Brannen defines research design as a context of inquiry. In this sense, she means a research design determines the process and structure of investigation. It is essential to highlight the logic of the study that drives the inquiry process. In this sense, the researcher should clearly define whether one wants an inductive system or a deductive system (Tolk 2013, p. 113). However, it is essential to note that mixed methods may still involve both of the logics. For instance, survey research may involve both deductive and inductive logics. In qualitative designs, the research tests ideas and generate new ones. She also argues that this phase involves framing researchable questions. These are not actual research questions but questions that will guide the kind of investigation a researcher chooses (Siraj-Blatchford 2010, p. 467). In a project, researchers may ask different types of questions. In the end, the hybrid nature of the questions influences the choice of a method or the choice o f a set of methods. Ercikan and Roth emphasize on the dichotomy of qualitative and quantitative research designs. They argue that this is a primordial basis for constructing any given research. Polarization usually occurs by terming quantitative research as

Literary analysis on Seize The Day by Saul Bellow to describe, Essay

Literary analysis on Seize The Day by Saul Bellow to describe, analyze, and interpret - Essay Example Without evaluating the self, one’s own abilities, individual races after secular achievements, thinking that there is no world beyond the external world, the world as interpreted by the power of one’s intellect. Many are not willing to accept that the inner world exists within every human being. God, call Him the Omniscient Power, All-pervading Reality, Light-Consciousness or any other name that various religions hail him, can not be comprehended by one’s intellect. Howsoever great may be one’s intelligence, one can not understand him through the mind-apparatus. The mystery of Nature is beyond description and intellectual arguments. The final frontier of logic and reasoning is mind. The primary duty of the mind is to confuse the human being. The scale of materialistic civilization has two measuring points-success or failure. It eulogizes the successful and condemns the failure! But it ignores the process of living by an individual. How one has faced life i n is trails, tribulations duty and beauty. The protagonist of the novel, introduced to the readers at the age of mid-forties, has the wrong start and finds it difficult to cope up with the challenges of life. He is unable to join the mainstream of society and finds himself a loner. †¦then some thing happens on a particular day, about which his mind has forewarned him! How Tommy Wilhelm encountered the predicament and made efforts to meet the cumulative pressure that has been building up within his inner self? â€Å"As a young man he has rejected his father’s profession, medicine, tried for a career in Hollywood, been tricked by a phony talent scout, ended up in sales and lost his sales district due to nepotism.† (Cronin, 2003†¦.)A college dropout, married and divorced, with two children, his finances are in a mess. He somehow wishes to recover the lost ground and

The role and function of the declaratory and constitutive theories of Essay

The role and function of the declaratory and constitutive theories of state recognition, in the international community, and having regard to the distinction be - Essay Example States are the most important â€Å"components of the international legal system†.2 In this regard, the 1933 Montevideo Convention provides a legal framework in international law for the necessary conditions for the acquisition of statehood3. The practice of customary international law and relations however, demonstrate that the institution of state recognition has an important role to play in the formation and acceptance of new entities calling themselves states. State recognition is also closely tied to the acceptance or refusal to accept what is essentially an unconstitutional change of government. While this aspect of statehood is not as important as state recognition, it nonetheless produces a series of consequences under international law, particularly the establishment of diplomatic relations and international personality. Unfortunately, the institution of state recognition is not firmly settled in international law. As a result, theoreticians and practitioners have developed two competing theories directly applicable to the institution of state recognition and its legal effect on statehood. These theories are known as the constitutive and declaratory theories and neither are capable of practical application in their pure form. The manner and degree to which each of these theories can be applied largely depends of extralegal factors. The result is, the international legal regime with respect to the conditions necessary for obtaining statehood is uncertain, unclear and unpredictable. Inevitably the aims and objectives of international law, which are to create a reliable and consistent body of law, is compromised. It is important to point out however, that international law is a relatively young and inconsistent body of law in which customary norms are not historical, but rather the actual source of law-making and for this reason, the practice is of far greater significance than in

Early Italian Poetry and Woman Essay Example | Topics and Well Written Essays - 2750 words

Early Italian Poetry and Woman - Essay Example 3). Through this form of poetry, poets were able to reflect inwards to their own voice, which provided them a mode through which to discover themselves. However, the medium of the written word also enabled the separation of the â€Å"speaker from the spoken†, in which the author was able to construct an â€Å"alter ego† that could express the actual speaker’s unrestrained feelings (Holmes 2000, p. 4). This shift also marked a shift towards authorship of the autobiographical, in which the Italian poets of the middle ages utilized the written word as a â€Å"confessional self-portrait†, where the words represented the poet’s innermost thoughts on such themes as life, religion, salvation, loss, etc. (2000, p. 7). Through a critical look at selected poems by Guinizelli, Dante, and Petrarch, the central theme of love will be discussed, as it is portrayed through the character of the heavenly or angelic idealized woman. Prior to a critical reading of the poetry, a brief biographical discussion on the poets is necessary to understanding the importance of the literary genre. In several of his poems, Dante referred to Guido Guinizelli as the â€Å"father of me and father of my betters† for having founded the school of poetry referred to as the dolce stil nuovo (Lambdin & Cooner Lambdin 2000, p. 248). Born in 1230, in Bologna, Italy, Guinizelli founded the new style of poetry, which included the literary contributions of several Bolognese poets, including the prominent poetry by Dante. Unlike the Sicilian poets, â€Å"Guinizelli’s analogies, metaphors, poetic language, and concept of love reflect his effort to write not from the heart but from the head, and to analyze love and its effects† (Lambdin & Cooner Lambdin 2000, p. 248). ... 248). His most well-known poem, â€Å"Al cor gentil rempaira sempre amore† critically analyzes courtly love by emphasizing the central importance of internal integrity as the true source of nobility, rather than basing nobility on status. He goes on to compare the noble love between a woman and man to the relationship between God and the angels. Dante used the image of Guinizelli’s noble lady in his anthology of works, entitled Vita nuova, and Dante accredits Guinizelli for playing the â€Å"role of both poetic father and prophet in establishing the dolce stil nuovo manifesto as the poetic vehicle for articulating philosophic truth through love† (Lambdin & Cooner Lambdin 2000, p. 249). Guinizelli’s most famous successor was Dante Alighieri, who was born in Florence in 1265. Seeing his life-long love, Beatrice Portinari, at the age of nine served as inspiration for his entire artistic career, and the love story between Dante and Beatrice unfolds in Danteâ⠂¬â„¢s Vita nuova, which was written after (and inspired by) the deep emotional impact of Beatrice’s death in 1290 (Lambdin & Cooner Lambdin 2000, p. 118). During the political turmoil in Florence at the end of the 13th century, Dante was exiled from Florence until his death; according to Dante’s first biographer, Boccaccio, the meeting with Beatrice and his exile from Florence was the two more important events in Dante’s life which strongly impacted his artistic work. Written between 1293 to 1294, Vita nuova consists of thirty-one poems written to, and about, Beatrice, whom he viewed as â€Å"representative of divine goodness and beatitude on earth†; and it is in this anthology that Dante rejects

Dietary Supplement Essay Example for Free

Dietary Supplement Essay Taking any kind of supplements can also be a type of complementary or alternative medicine. The U. S. Food and Drug Administration (FDA) do not regulate dietary supplements in the same way that it regulates medicine. A dietary supplement can be sold without research on how well it works. The benefit of taking dietary supplements is that they are designed to augment your daily intake of nutrients. Normally, you should be able to get all the nutrients you need from a well balanced diet. However, taking supplements can provide additional nutrients when your diet is lacking or when certain health conditions cause you to develop an insufficiency or deficiency. Multiple-vitamin supplements provide all the basic vitamins and minerals your body needs. These vitamins are generally safe because they only contain small amounts of each nutrient. Individual nutrients can also be sold as a dietary supplement, but in larger amounts than what’s found in a typical multiple-vitamin. These supplements may be used to treat a simple deficiency, such as an iron deficiency, but sometimes they’re used therapeutically to treat specific health conditions or risk factors. For example, large doses of niacin may be used to raise good cholesterol, and folic acid has been used to reduce the risk of a birth defect called spina bifida. The risk of taking dietary supplements is that some contain active ingredients that have strong biological effects in the body. This could make them unsafe in some situations and hurt or even complicate your health. Using dietary supplements could lead to harmful and even life-threatening consequences such as using supplements with medications whether prescription or over the counter and substituting them for prescriptions medicines. Taking too much of some of these supplements, such as vitamin A, vitamin D, and iron. Some supplements can also have unwanted effects before, during, and after surgery. Always inform your health care provider, including your pharmacist about any supplements your taking especially before surgery. The FDA regulates both finished dietary supplement products and dietary ingredients under a different set of regulation than those covering â€Å"conventional† foods and drug products (prescription and Over-the-counter). Under the Dietary Supplement Health and Education Act of 1994 (DSHEA), the dietary supplement or dietary ingredient manufacturer is responsible for ensuring that a dietary supplement or ingredient is safe before it is marketed. FDA is responsible for taking action against any unsafe dietary supplement product after it reaches the market. Manufacturers are required to produce dietary supplements to minimum quality standards and ensure that they do not contain any contaminants or impurities, and are accurately labeled. Generally, manufacturers do not need to register their products with FDA nor get approval before producing or selling dietary supplements. Manufacturers must make sure that product label information is truthful and not misleading. The manufacturers are required to report all serious dietary supplement related adverse events or illnesses to the FDA as of December 2007. The FDA can take dietary supplements off the market if they are found to be unsafe, adulterated, or if the claims on the products are false and misleading. Folic acid is a type of B vitamin that is normally found in foods such as dried beans, peas, lentils, oranges, whole-wheat products, liver, asparagus, beets, broccoli, Brussels sprouts, and spinach. Folic acid is used for preventing and treating low blood levels of folic acid as well as its complications, including â€Å"tired blood’ (anemia) and the inability of the bowel to absorb nutrients properly. Folic acid is also used for other conditions commonly associated with folic acid deficiency, including ulcerative colitis, liver disease, alcoholism, and kidney dialysis. Women who are pregnant or might become pregnant take folic acid to prevent miscarriage and birth defects such as spina bifida that occur when the fetus’s spine and back don’t close during development. Folic acid is likely safe for most people. Most adults do not experience an aide effects when consuming the recommended amount each day, which is 400 mcg. High doses of folic acid might cause abdominal cramps, diarrhea, rash, sleep disorders, irritability, confusion, nausea, stomach upset, behaviors changes, skin reactions, seizures, gas, and excitability. There is some concern that taking too much folic acid for a long period of time might cause serious side effects. Some research suggests that taking folic acid in doses of 800-1200 mcg might increase the risk of heart attack in people who have heart problems. Other research suggests that taking these high doses might also increase the risk of cancer such as lung or prostate cancer. For folic acid deficiency: the typical dose is 250-1000 mcg per day. For preventing neural tube defects: at least 400 mcg of folic acid per day from supplements or fortified food should be taken by women capable of becoming pregnant and continued through the first month of pregnancy. Women with a history of previous pregnancy complicated by neural tude defects usually take 4 mg per day beginning one month before and continuing for three months after conception. References: www. nih. gov/medlineplus/dietarysupplements www. wedmd. com/dietarysupplements www. fda. gov/food/dietarysupplements

Amniotic Fluid Volume In Pregnancy

Amniotic Fluid Volume In Pregnancy Objectives . To assess the relationship between the amniotic fluid volume (AFV) in low risk pregnancy and the perinatal outcome, using either AFI or SDP, and to evaluate the effects of different fetal positions and Attitudes on those measurements Methods . A prospective study was performed, in which a sample of 3000 low-risk pregnant women were studied using routine ultrasound, including fetal biometry and measurement of AFI, and SDP. Data were analysed using multiple linear regression, and constructing a curve for both the AFI, and SDP measurements, according to gestational age, the fetal positions and attitudes, in addition to the assessment of the final perinatal outcome. Results . The 50th percentile remained practically constant at approximately 150 mm between the 20th and 33rd week, after which there was a decline in volume, which became evident after the 38th week. At the 40th week, the 10th percentile was around 62 mm and the 2.5th percentile around 33 mm. Among the group with intact membranes, no significant differences in perinatal outcome could be seen in relationship to the AFI and SDP, although a 50% increase in emergency operations for fetal distress was seen in women with oligohydramnios. Fetal position had significantly affected the AFI, which was remarkably lower in breech pregnancies, but without similar effect on SDP. There was no significant difference for either SDP (P = 0.8) or AFI (P = 0.3) between fetuses lying on the right or the left side of the maternal abdomen. Conclusions . The percentiles incidence of amniotic fluid measurements in low-risk pregnant women showed significant decrease with gestational age, especially after the 33rd week pregnancy. Fetal position and laterality had affected significantly the AFI, but not the SDP. Key words: Amniotic fluid index, low-risk pregnancy, obstetric ultrasonography Abbreviations: AFI: amniotic fluid index, AFV: amniotic fluid volume, GA: gestational age, p: percentile Introduction The importance of variations in volume of amniotic fluid to fetal well-being has been particularly well-established, and are closely correlated to an increase in perinatal mortality and morbidity rates (1, 2), although some doubts have recently been raised (3). Fetal well-being is an important question that can, however, remain unanswered in many situations, but progress in diagnostic techniques has resulted in better perinatal outcomes, and has also contributed to understanding the complex physiological and pathological interaction between fetus and mother (4, 5). AFI and SDP are the sonographic parameters most commonly used to estimate amniotic fluid volume. Both use a two-dimensional measurement to estimate a three- dimensional parameter and are therefore subject to error. Amniotic fluid index (AFI), a semiquantitative ultrasound measure used to denote the volume of amniotic fluid, was first described in 1987 by Phelan et al. (6, 7). Since AFI involves measurements in four quadrants and SDP only measures the deepest pocket, it is possible that fetal position would affect these two indices differently. The relative accuracy of SDP and AFI is still controversial. Using invasive methods, some studies have shown these methods to be comparable, while others have shown that one index might be better than the other. However, none of these studies took into account the potential effect of fetal position on the amniotic fluid volume indices (8). Many studies have shown an increased risk of intrapartal fetal distress in parturient women with oligohydramnios, as identified by ultrasound examination. The exact pathophysiologic mechanism of olighydramnios has not been defined, but one likely explanation is an increased risk of umbilical cord compression during uterine contractions (7,9). However, doubts remain concerning normal values of AFI for each gestational age. The reference curves established some years ago are still in use in current obstetrical practice, but there is a need for new data, using a reliable reference low-risk pregnant women sample, to establish the limits of AFI that would indicate perinatal risk (9). Some existing curves (10 13), were based on relatively small sample sizes, and normal AFI for each gestational age was not yet definitely established. The purpose of this study was to estimate the curve for the amniotic fluid volume in low risk pregnancy, using a set of obstetric sonograms of women between the 20th and 42nd week, using two established parameters, the AFI and SDP, and to assess the effects of those measurements on the final perinatal outcome, in addition to studying the effects of different fetal positions and attitudes on those measured parameters. Material and methods A prospective study was carried out to estimate and evaluate the reference curve of AFI values in low-risk pregnant women, and to follow its effects on the final perinatal outcome. The study was performed at the Feto-maternal Unit, Department of Obstetrics and Gynecology at El-Minya University, Egypt. Inclusion criteria were: gestational age clearly established by last menstrual period, and confirmed by early ultrasound examination performed in first trimester of pregnancy; and gestational age between 20 and 42 weeks. Women excluded were those with pregnancy-induced hypertension, diabetes mellitus, chronic hypertension, gestational diabetes, fetal macrosomia, ruptured membranes, placental senescence, twin pregnancy, fetal growth restriction, fetal abnormalities, fetal death, fetal isoimmunisation, or other conditions, such as metabolic disorders, kidney and heart disorders, and hypo- and hyperthyroidism. Amniotic fluid volume was measured using a 3.5 MHz linear transducer linked to a ALOKA SS 280. A scanner using the 4-quadrant technique for the assessment of AFV, described by Phelan et al.(6, 7, 9), with a modification proposed by Jeng et al.(11). A total of 3000 women between the 20th and 42nd week of pregnancy were evaluated in this study, between August 2008 and December 2010. In order to avoid any possible bias due to repetition of examinations in women with some undetected problem, an independent sample was chosen. Therefore, only the first ultrasonographic examination of each woman was included in the study, and different sample populations were used for each gestational age, in a cross-sectional design. A formal consent had been taken form the women included in the study, after full explanation and counseling, and approval of the regional ethical committee. The uterus was imaginarily divided into right and left halves along the linea nigra on the surface of the maternal abdomen. Using the mid-point between the fundus uteri and the pubic symphysis, the uterus was also divided into upper and lower halves. With the transducer head perpendicular to the ground, the largest amniotic fluid pocket in each quadrant was identified. The vertical diameter of this largest pocket of each one of the four quadrants was then measured. The AFI was defined as the sum of the measurements of each quadrant in millimeters. All examinations were performed by only one professional in order to avoid inter-observer variability. The intra-observer variability of the measures performed with this technique was estimated to be high (correlation coefficient 0.92) (14-18). Both AFI and SDP were measured at the same time during the examination. SDP was obtained by measuring the depth of the single deepest vertical amniotic fluid pocket that was clear of umbilical cord or fetal parts (19,20). AFI was calculated as the sum of the depths of the deepest pockets from each of the four quadrants of the uterus. The position of the fetal trunk was characterized by three parameters. Initially, the ultrasound probe was placed transversely on the maternal abdominal wall, with the midpoint of the probe over the sagittal midline of the maternal abdomen, at the level of the fetal abdominal circumference (Figure 1). A vertical line (Line Y) was drawn downwards from the center of the ultrasound probe. A horizontal line (Line X) was drawn across the maximum diameter of the fetal abdominal circumference. Line X was thus divided by Line Y into a shorter part (S) and a longer part (L). The first parameter to be determined was the position of the fetal trunk. This was assigned as either fetal trunk left or fetal trunk right depending on whether L was on the left or the right side, respectively, of the maternal abdomen (21-24). Next, we determined by how much the fetal trunk lay to one side of the uterus, by calculating the laterality score, defined as S/(S + L). This score ranged from 0 to 0.5; a score of exactly 0.5 meant that the fetal trunk was on the sagittal midline of the maternal abdomen, and a score of 0 meant that the fetal trunk was to the side and did not cross over Line Y. The use of the laterality score has not been reported previously. Finally, we determined the orientation of the ventral part of the fetal abdomen: a line (Line Z) was drawn from the fetal hepatic vein to the fetal spine, and the angle (A) between Lines Z and Y was determined. Fetuses were classified into one of three groups: ventral anterior (A = 300.1 360- or0-60-), ventral lateral (A = 60.1 120- or 240.1 300-) and ventral posterior (A= 120.1 240-). Figure I. The study population was categorized into different groups according to the fetal position, and AFI and SDP in the different groups were compared. Pearsons correlation coefficient between laterality score and AFI was considered the primary outcome measure. For an r of 0.25, a minimum of 62 cases was needed at a Type I error of 0.05. Based on the curve of Jeng et al. (25), and adopting a mean AFI measurement of 140 mm at 40 weeks, and a standard deviation of 48 mm, a sample size of at least 120 measurements for each week of pregnancy was estimated, assuming an ÃŽ ± error of 0.05 and a maximum difference of 10 mm between population and sample measurements. The AFI was correlated to perinatal outcome based on the Apgar score, umbilical cord blood pH, birthweight, frequency of cesarean section for fetal distress, operative delivery for fetal distress, including both cesarean section, vaginal forceps, and ventous extractions, and referral to the neonatal intensive care unit (NICU). Fishers exact test was used for statistical evaluation. P < 0.05 was considered statistically significant. The computer program nQuary Advisor Release 3 (Statistical Solutions Ltd, Cork, Ireland) was used to calculate the sample size needed in order to obtain significance levels at p < 0.05 and 0.01 with 90% confidence intervals (CI). Data were analysed using multiple linear regression, and by constructing a curve of the 2.5th, 10th, 50th, 90th and 97.5th percentiles of the amniotic fluid measurements according to gestational age. All statistical analyses were performed using the Statistical Package for Social Sciences for Windows version 10.0 (SPSS Inc, Chicago, IL, USA). Students t- test, Pearsons correlation coefficient, linear regression and ANOVA were used as appropriate. A P-value of < 0.05 was considered statistically significant. Results The 3000 pregnant women included in the study had a mean age of 25.9 years (range 13 46), with low parity (45% were primigravida). The sample was basically from a low risk population because of the exclusion criteria used. The values of the 2.5th, 10th, 50th, 90th and 97.5th percentiles of the AFI, and SDP according to gestational age are shown in Figure II, III and IV show the data after being submitted to a smoothing process using quadratic polynomial adjustments. Analysis of the 50th percentile measurements of the AFI, and SDP curve at different gestational ages revealed that these values remained practically constant, at around 150 mm, between the 20th and 33rd week of pregnancy. At this point, values began to decrease, and this decline became particularly evident after the 38th week, reaching 130 mm at the 39th week, 120 mm at the 41st week and 116 mm at the 42nd week of gestation. Table I, and II The mean gestational age at the time of examination was 33.3 Â ± 2.8 weeks. The mean SDP and AFI were 5.5 (range, 2.8 9.3) cm and 14.5 (range, 6.7 29.3) cm, respectively. There were no significant differences in mean AFI measurements when these data were controlled for age, race, literacy, parity or previous caesarean scar (data already published elsewhere) (18). Measurements of the 10th percentile remained 100 mm until the 33rd week, when an accentuated decrease started, declining even more sharply after the 38th week of gestation, reaching values 80 mm and 40 mm at the 42nd week. According to the published normal ranges, six cases had polyhydramnios (AFI = 29.3 cm at 29 weeks gestation, SDP = 9.1 cm at 37 weeks and SDP = 9.3 cm at 33 weeks gestation) and two cases had oligohydramnios (AFI = 6.7 cm at 36 weeks gestation). Twelve hundreds and five (42%) cases were fetal trunk right and 1663 (58%) were fetal trunk left. There were no significant differences between these groups with respect to gestational age (33.1 Â ± 2.4 vs. 33.4 Â ± 2.7 weeks, P = 0.7), mean SDP (5.4 Â ± 1.3 vs. 5.5 Â ± 1.4 cm, P = 0.3) and mean AFI (15.1 Â ± 5.1 vs. 14.1 Â ± 4.0 cm, P = 0.8).Table III In fact, our results showed that fetal position had a significant effect on AFI but not on SDP; the more the fetus was positioned to one side of the uterus, the lower was the AFI. Both methods show good correlation between the measurements and the actual volume of amniotic fluid. The effect of laterality score on amniotic fluid volume indices was assessed by Pearsons correlation coefficient and linear regression. It had no significant effect on SDP (r = 0.13, ÃŽ ² = 1.1, standard error = 0.9, P = 0.23). However, it did significantly influence AFI (r = 0.31, ÃŽ ² = Transverse section of maternal trunk level of fetal abdomen8.7, standard error = 3.0, P = 0.005). The regression line is shown in Figure III. In other words, when the laterality score increased, the AFI increased proportionately. When the laterality score was 0.5 (fetal trunk positioned at the midline of the maternal abdomen), the AFI was, on average, 4.35 cm higher than it was when the laterality score was 0 (fetal trunk lay on the side and did not cross the midline of the maternal sagittal plane). Figure III, IV. There were two case of high AFI (29.3 cm) in the study population. In order to exclude the possibility that the results were influenced by this single case, we repeated the analysis quadrants of the ipsilateral side, the vertical depth of these two quadrants being be much shallower compared with those on the contralateral side. Although amniotic fluid should be displaced to the contralateral side, this may not be reflected completely in a two-dimensional measurement of the depth of the other two pockets. Therefore, it is not surprising to find that AFI measurement is lower when the fetus lies on one side of the uterus instead of centrally. The difference was statistically significant and is clinically important. When the fetus lay on one side of the uterus, the AFI was, on average, 4.35 cm lower compared with the AFI for a fetus lying centrally. On the contrary, SDP is apparently rather inert to fetal position. Since SDP only measures the deepest pocket, it is understandable that the effect of fetal position on its measurement is less. Based on the results of this study, SDP may be a better index for estimation of amniotic fluid volume than is AFI, because the association between SDP and laterality score remained non-significant (P = 0.4, ÃŽ ² = 0.8, standard error = 0.9). Further analysis was also performed with linear regression to control for the effect of gestational age. These results showed that the laterality score had a significant effect on AFI (ÃŽ ² = 9.6, standard error = 3.0, P = 0.002) that was independent of gestational age (ÃŽ ² = −0.4, standard error = 0.2, P = 0.019). AFI was significantly higher in cephalic fetal position, more than with breech ones. This result had been clearly apparent after 32 weeks gestation, and with less AFI with the ventral fetal trunk attitude with the breech position, than other. SDP had not show the same picture in different fetal positions, either breech or cephalic, so SDP as an AFV parameter had not been affected with the different fetal positions. Of the 3000 fetuses, 345 were ventral anterior, 1720 were ventral lateral and 803 were ventral posterior. The respective gestational ages of these groups were 33.5 Â ± 2.7, 32.8 Â ± 2.7 and 34.2 Â ± 2.8 weeks, the SDPs were 5.5 Â ± 1.4, 5.5 Â ± 1.3 and 5.5 Â ± 1.4 cm, and the AFIs were 14.5 Â ± 5.3, 14.4 Â ± 4.4 and 14.8 Â ± 4.4 cm. None of these was significantly different between the three groups (P = 1.0, P = 0.14 and P = 0.9, respectively). The 3000 pregnant women were divided into two subgroups according to the status of the fetal membranes. The membranes were found to be ruptured at the time of the examination in 1400 (44%) women; 750 (25%) had oligohydramnios. The membranes were intact in 1600 (55); 350 (15%) had hydramnios. Table I shows the maternal variables of the two groups. The median interval between the ultrasound examination and delivery was 4 h (range 0-24 h) in the group with ruptured membranes and 6 h (range 0-70 h) in those with intact membranes. In the group with ruptured membranes there was a significant difference in the frequency of operative delivery due to feta distress between the parturients with oligohydramnios and those with a normal volume of amniotic fluid [10.6% and 3.0%, respectively, p < 0.02, OR 3.86 (range 1.34-1.11)]. No significant differences were found regarding the other variables of perinatal outcome (Table II). In the group with intact membranes, there was a 50% increased risk of operative intervention due to fetal distress (OR 1.5), though not significant (CI 0.48-4.63) (Table III). Discussion There is a variation in AFI measurements according to gestational age. Values in the current study remain relatively constant until the 33rd week of pregnancy when a progressive decrease starts, becoming particularly evident after the 38th week of gestation. The normal lower and upper limit values of the AFI commonly used up to now, which vary between 50 and 200 mm, are similar to those found in the present study up to the 40th week of pregnancy. When adopting reference values between 80 and 180 mm for every week of pregnancy (19,20), incorrect diagnosis are likely to occur. Our findings, suggested a strong influence of fetal position on sonographic indices of amniotic fluid volume. Furthermore, we recruited women with apparently normal pregnancies and hence most likely with normal amniotic fluid volumes. Further studies should look at the relationship between fetal position and amniotic fluid volume indices in cases of oligohydramnios and polyhydramnios. Pregnant women, who are classified as having oligohydramnios by these criteria, may possibly be considered normal if a reference curve of AFI specific to gestational age were used, especially in term and post-term pregnancies. The adopted limit values indicating an alteration in the AFV are variable. For the fetal biophysical profile, the measurement of just one pocket is adopted, varying from 1 to 3 cm, and considered the lower normal limit by some authors (21,22); however, in this case, total volume would be considered decreased if the AFI were used. In fact, a RCT comparing both techniques showed an overestimation of abnormal results with AFI in post term pregnancies, increasing the number of obstetric interventions (23). These variations in classifying oligohydramnios reflect doubts regarding which percentiles best express the correlation between the decrease in AFV and poor fetal outcome. When the 50th percentile AFI was compared with that reported in a previous study (14), measurements were always higher in our study at all gestational ages by approximately 50 mm up to 28 weeks, and by 30 40 mm between 32 and 40 weeks of pregnancy. On the other hand, the current 50th percentile showed fewer variations, around 10 mm at all gestational ges, compared to the results of the indian study population (15). The importance of a curve that includes the 10th and 90th percentiles is reflected in its greater capacity to identify abnormal cases. Therefore, if the 10th percentile is used as the lower normal limit, there would be less likelihood of missing a case of real oligohydramnios. A curve that included the 2.5th and 97.5th percentiles would diagnose fewer cases of abnormal AFI, and this could result in more cases of oligohydramnios or polyhydramnios being included within the normal range. By adopting the 10th percentile of AFI as the diagnosis for oligohydramnios in our population, the values are higher than those found for the Chinese study up to 36 weeks, but similar around 40 weeks of pregnancy (14). When we compare the results of this study to previous published curves (10-17), similarities can be seen for the 50th percentile of AFT at all gestational ages. However, when comparing the 2.5th percentile, it is evident that the measurements in Moore and Cayles curve are lower up to the 35th week of pregnancy, after which they are higher than the values found in our study curve. The 97.5th percentile of the Moore and Cayle curve is slightly higher at all gestational ages except for the 41st and 42nd weeks. The lower limit of 2 standard-deviations and the mean values of the Jeng et al. (11) curve are slightly lower in relation to the present curve at corresponding gestational ages, except from the 37th to the 42nd week, when values remain higher than those in the present curve. The definition of normal AFI cannot, in itself, guarantee good perinatal outcome. For instance, a 42-week pregnancy with an AFI of 45 mm would be considered normal, but how physiological this value is and what real risk it represents are questions that still need to be fully answered. If the correlation between AFV and perinatal outcome can be established, this curve may have a broader clinical application in prenatal diagnosis and care. Moreover, the curve of the 2.5th, 10th, 50th, 90th and 97.5th percentiles of the AFI measurements shows a significant decrease according to gestational age, especially after the 32nd week. This measurement could, therefore, considered a normal reference curve for the evaluation of AFI. The results of the present study suggest that oligohydramnios after rupture of the membranes in low-risk pregnancies is associated with a nearly four-fold increased risk of operative delivery due to fetal distress. An ultrasound examination of AFI could thus identify those who may need intensified fetal surveillance during labor. The present study was performed on a selected group of women with low-risk pregnancy. As AFI is one of the parameters checked in high-risk pregnancies at our hospital, these parturients were excluded in order to make the study blind. By adding high-risk pregnancies, a much smaller sample size would be needed. The frequency of oligohydramnios in cases with intact membranes was unexpectedly high: 15% instead of 5% in the controls. Although our pregnancies were low-risk, a few showed signs of pregnancy complications on admission to the labor ward (Table I), which might explain the higher frequency of oligohydramnios in this group. Although there was a significant correlation between operative delivery due to fetal distress and oligohydramnios in cases of ruptured membrane (Table II), sensitivity was low (11%), and false-positive and negative rates were 46% and 23%, respectively. Thus the knowledge of oligohydramnios in these low-risk pregnancies did not cause any immediate action, only more intense surveillance during labor. In the present study there was a 50% increased risk of operative fetal delivery due to fetal distress in parturients with oligohydramnios and intact membranes. Teoh et al. studied 120 pregnancies as an admission study in early labor with intact membranes. The frequency of oligohydramnios (AFI < 5 cm) in their study was 22%, and operative delivery due to fetal distress frequency among these was 27%. Based on these data, a sample size of 100 would be sufficient. We chose, however, three times that size, as the low-risk status of their population was uncertain (9, 11). The pathophysiology of oligohydramnios before membrane rupture is unclear. One theory is that a reduced perfusion of the placenta causes hypovolemia in the fetus, and/or an automatic redistribution of fetal blood volume to vital organs with a resultant reduced blood supply to the kidneys. This in turn could lead to reduced production of urine, and thus reduce the volume of amniotic fluid. Bar- Hava et al. studied signs of redistribution, renal blood flow, and signs of oligohydramnios, but could find no correlation. There was no change in the renal artery pulsatility index (12, 14, 19). Oligohydramnios in labor after the rupture of membranes in a low-risk pregnancy is probably not caused by a reduced perfusion of the placenta, but is more probably caused by the loss of large amounts of amniotic fluid at the time of the rupture. One explanation for the significantly increased risk of operative delivery due to fetal distress in the group with ruptured membranes might be that there is an increased risk of the umbilical cord becoming trapped in an ad- verse position, at the time of the rupture, if a large amount of amniotic fluid is lost. Amnioinfusion may be a way to treat such cases in order to restore the volume of amniotic fluid and reduce the risk of compression of the umbilical cord, thus averting the need for operative delivery (11, 21, 23). As a conclusion of the current study, assessment of the AFV during pregnancy using the SDP appears to be more accurate than the AFI, especially the SDP evaluation has not been affected significantly with either different fetal positions or attitudes, but still we are in need for further controlled studies to compare the accuracy of the two modes of AFV assessment. Another conclusion drawn from our study is that an ultrasound examination, including measurement of AFI as an admission test for women presenting at the labor ward with ruptured membranes after an uneventful pregnancy, could help identify those with an increased risk of intrapartum fetal distress, namely those with oligohydramnios. Moreover Measuring AFI in low-risk pregnancies on admission to the labor ward might detect cases needing special surveillance. We are currently preparing a new ongoing study, as an extension to the current study, comparing the previous two parameters of AFV assessment in high risk pregnancies, and the preliminary results could confirm the previously mentioned results, but it is too early to get to a final conclusion.

Study on Financial Statements and Ratios of Banks

Study on Financial Statements and Ratios of Banks 4.0 Introduction The data analysis chapter has been divided into two parts. In the first part, I have tried to do some sort of quantitative analysis. The first part is based on the financial statements and key ratios of both the chosen banks. Again it was broken down into sub-points like the analysis of data before recession and after recession. Some key ratios were calculated, compared and analysed from the financial data of last 10 years for both the banks. The second part of this chapter is a mixture of literature review data analysis and some points were written with reference to the analysis done in first part in my own words. 4.1 Analysis of Data Derived from Financial Statements and Ratios 4.1.1 Bank Status before Recession After Recession To be able to answer our research questions it is imperative to look at the two companies data from financial statements, this will reveal the risks inherent in each banks operation. The analysis utilizes data from the financial statements of the banks under review from year 2005 to 2010 just before recession started. While the two banks have similarities in risk management RBS use pounds while HSBC use dollars as the basis currency in the books of accounts, while this may hinder the analysis especially quantitative analysis the general data increase and decrease is an important aspect sufficient for this study. 4.2 Financial Position of RBS 4.2.1 Financial Position of RBS before recession (2004-2005, 2005-2006, 2006-2007) The Royal Bank of Scotland turnover had been on steady increase, in the financial year ending December 2007 the turnover was  £30,366 million; in 2005 the turnover was  £25902 million while in the year ending 2006 turnover increased to  £28002 million. In 2005 operating profits were  £7936 million while in 2006 operating profits increased marginally to  £9186 and in 2007  £9807 million. Profits before tax has been on steady increase from  £7936million in 2005 to  £9186 and  £9832 million in 2006 and 2007 million respectively. 4.2.2 Financial Position of RBS After Recession (2007-2008, 2009-2010) The turnover for year 2008 was  £25868 Million and finally the turnover for the year ending December 2009 was  £38690 million. In but in 2008 and 2009 losses of  £40836 and  £2595 were recorded respectively, this was after recession started. The full details for the full year 2010 results have not been announced but the first half results profits had increased by 44% to  £3950 million. Table 1 Royal Bank of Scotland Profit and loss Extracts Year Ended 31 Dec 2010 2009 2008 2007 2006 2005  £millions  £  £  £  £  £  £ Turnover 38690.0 25868.0 30366.0 28002.0 25902.0 Operating Profit Q3 726 -2595 -40836.0 9807 9186 7936 Profits before tax -2595 -40836.0 9832.0 9186.0 7936.0 Source; RBS website 4.3 Financial Positions of HSBC 4.3.1 Financial Positions of HSBC before recession On the other hand the turnovers for HSBC on the financial years under review were as follows; year 2007 the turnover was $ 87601 million, $ 61704 million in 2005 and $70070 million in 2006 in terms of operating profits, the group managed $20966.0m, $21240.0m and $22709.0m in years 2005, 2006 and 2007 respectively. Profits before tax were $20966m, $22086m, and $24212m in years 2005, 2006, and 2007. 4.3.2 Financial Positions of HSBC After recession The group managed a turnover of $ 88571 million and $ 78631 million in 2008 and 2009 accounting periods respectively. HSBC recorded $ 22709 million profit in 2007; however the profits declined substantially to $7646 million in 2008 and $ 5298 in 2009 again profits were affected as recessionary fears started. In third quarter of 2010 the profits increased marginally. Table 2 HSBC Profit and Loss Extracts Year Ended 31 Dec 2010 2009 2008 2007 2006 2005 $millions $ $ $ $ $ $ Turnover 78631 88571 87601 70070 61704 Operating Profit 5298 7646 22709 21240 20966 Profit before tax 7079 7079 9307 24212 20086 20966 Source: HSBC website 4.4 Tabular, Graphical representation, interpretation and analysis of key ratios of HSBC RBS for last 10 years In the next few pages, I have tried to present the data in tables, graphs and charts. Some of the data was presented and calculated for last 10 years and some for the last 5-6 years. Some of the key ratios as given below were calculated, analysed and compared for both the banks. Net Interest Margin Return on equity Capital adequacy Liquidity ratio Non-performing assets ratio Loans Turnover ratio Loans to Assets ratio Gross Yield on Earning Assets (GYEA) Table 3 HSBC Ratio Analysis in percentage Year Ending 31 Dec 2010 up to June 2009 2008 2007 2006 2005 2004 2003 2001 Net Interest Margin 3.25 3.09 3.05 2.00 3.4 2.04 2.60 2.54 2.24 ROE 11.1 12.3 11.21 9.62 11.60 12.25 11.2 15.6 13.21 Capital Adequacy 11.50 11.60 11.75 10.89 10.97 11.01 11.12 11.31 11.63 Liquidity ratio 2.20 2.50 3.62 4.21 5.31 6.54 1.23 1.11 2.15 Nonperforming assets ratio 2.17 2.27 2.12 2.14 2.16 2.14 2.11 2.01 2.00 Loans Turnover ratio 66.2 55.2 25.10 29.2 54.0 59.1 67.12 74.21 76.45 Loans to Assets ratio 0.60 0.40 0.22 0.15 0.12 0.113 0.21 0.28 0.32 GYEA 5.21 4.60 4.49 4.36 4.24 4.42 4.68 4.29 3.26 Source: Data glanced from HSBC website and did personal analysis. Figure 4 HSBC ratio analyses (Note: all the figures are in percentage) Table 4 RBS Ratio analysis as a percentage Year Ending 31 Dec 2010 up to June 2009 2008 2007 2006 2005 2004 2003 2001 Net Interest Margin 1.97 1.76 1.70 1.75 1.83 1.91 2.01 2.03 1.92 ROE 12 11.5 11.4 9 9.6 9.12 14 11.2 10 Capital Adequacy 12.51 11.44 11.95 12.98 11.72 11.10 12.21 13.11 13.23 Liquidity Ratio 3.21 2.42 3.21 5.22 3.23 3.29 2.23 2.11 3.15 Nonperforming Assets Ratio 11.1 14.1 16.1 12.15 12.11 12.10 11.11 11.01 10.10 Loans Turnover Ratio 66.9 45.25 44.15 39.2 44.0 49.12 57.21 63.32 66.00 Loans to Assets Ratio 1.56 1.45 1.35 1.40 1.19 0.20 0.89 0.46 0.56 GYEA 3.33 4.6 2.12 4.06 4.12 3.28 2.86 2.92 2.45 Source: Data glanced from RBS website and did personal analysis Fig. Comparison of the two banks PL data Generally over the years the turnover of the two banks has been increasing but the increase in HSBC turnover has been moderate while that of RBS has been steep. HSBC has managed to remain profitable for the period of analysis showing that the company has been able to mitigate the risks well as compared to RBS. RBS made substantial operating losses amounting to 2595 million in 2009 and had to be supported by the government as a result of subprime mortgage crisis. The data show that HSBC has adopted prudent management even though profits declined, the ratios show the group has maintained strong capital base Findings During the two years before year 2009 and after the two banks were adversely affected by economic condition. The profit and loss analysis from the two banks show that HSBC has been able to tackle liquidity risks well as it has been able to maintain profitability through out even during the recession on the other hand RBS was affected and made losses in 2007, 2008 and 2009 but the half year available indicate the bank has returned to profitability after the government support. The profitability before tax is shown in the figure below. Figure 5 Source: Data glanced from RBS and HSBC websites and did personal analysis Note: HSBS figures are in million dollars while figures for RBS are in million pounds. 4.5 Literature Review Data Analysis This dissertation presents the underlying strategies and approaches applied by the top UK banks in learning the differences between HSBC and Royal Bank of Scotland. The strategies and approaches are observed before and after the recession period when assets and stocks were reducing in value putting the banks in worst case financial scenario. To compare their financial, business and operational risks concern will create a bigger picture. The aim is to determine which between the two banks has a better and effective approach and strategy in the risk-reduction initiatives (Drew Michael, et al., 1996) Banks in United Kingdom have relied upon a proven system of strong liquidity risk management. This has been in existence for over three years now and since the system was started banks have made it a priority to update their systems of risk management to keep abreast with the changing demands of the society and technological innovations associated with risk management. Financial stability is easily achieved by following less complicated process and that is to stick to the rules and created in less difficult way that whenever you try to explain it to a customer or client. The grasp of the policy will then be easily absorbed (Issing, 2004). The liquidity risk management of most United Kingdom has been seen to be strong and responsive whenever banks experience risks. Banks have to ensure that they exercise prudent risk management to be able to provide customer satisfaction, but some of the banks are less committed to the task to minimize their exposure to risks. It can be costly to the bank and expose the bank to court cases, licence cancellation by the supervisory authorities and customers withdrawing from the bank. The only way to do this is to create a reliable system of liquidity risk management (Issing, 2004). Risk management actions count the most in the future and especially in setting the reputation of the banks. Extra effort is required in creating policies that will withstand the effect of any risks. Being able to communicate the recent risk situation among the team members will help a lot in the resolution and in effectively carrying out the regulations which they intended to implement for the banks organization. A manifestation of a high level of activity would spell a lot of difference compared to those who lag behind due to poor management risk planning (Kahf Homud, 1998). An effective liquidity risk management is able to make anticipations on the occurrence of future risks. There is also a type of liquidity risk management that can only provide satisfactory level of service or performance, however, it possess certain weakness though very insignificant, it may still deliver anticipated results like those managements that are strong since it only manifest very minor signs ineffectiveness (Bank of England 2007). HSBS and the Royal Bank of Scotland are not just the top banks in United Kingdom they are the two banks that show an impressive liquidity risk management. This record could be very much proven by the profits earned annually and the impression they make among their customers is excellent and they never settle for anything less. The two banks have applied similar systems although HSBC is the bank that shows the most impressive and effective strategy/ approach against a liquidity risk. They always make sure to protect not only their money but also protect the welfare of their customers and intend to move with them and manage their finances by avoiding incompetence in dealing with liquidity risks. HSBS guides their customer from the time they enter the institution until the time they become part of a much growing and impressive banking industry (Bank of England 2007). In the last two years HSBC only experienced short term recession only, they had prepared for the recession, through management and the fact that they had experienced a crisis before and had rectified it by creating a frame work that worked well for the bank. Prudent risk management at HSBC can be analysed by looking at the profits that the bank has earned recently where the bank doubled its half-year profits by posting  £7 billion as at August 2010, this is at a time when smaller banks were feeling the effects of recession. Analysts have seen the capabilities of the bank base from their well-managed systems and strategies. They had already expected such things to happen so there is nothing surprising about that (Goodway, 2007). The banks have taken all necessary precautions and the management maintains optimism that in case of risks they will find a way out. The way the two banks react to problems is always quick thus they are able to find real time solutions. This strategy is a good way of keeping loyal customers. The primary goal is to offer consistency in performance whether the nature of the transaction differs or not, this is exemplified by the HSBC spirit of being consistent and reliable in every possible way. One of the ways that the banks have avoided the risks is to anticipate the risks thus making in advance plans. HSBC has made a point to anticipate risks and make plans to mitigate or avoid the risks completely, this is seen in the banks preparation of the recession in the last two years the bank made adequate plans and adopted prudent lending, adopted technology and minimized operations expenses, while other bank were unprepared and had to be rescued by the government. HSBC operates inn flexible economies, this has been explained by looking at the diversity of the markets it operates, and this gave the bank diversity as not all markets experienced recession. HSBC reaction to risks is a testimony to its objective to effectively handle risks, one such objective identified in the study was is to create liquidity through making an arrangement to leaseback or sell assets whenever loans are defaulted (Goodway, 2007) On the other hand, the Royal Bank of Scotland has similar strategies, before recession the management had drawn a plan on risk management, this is exemplified by the fact that they didnt change their banking rates during this period. Although they needed to take precautions on the insurance, once this has been resolved they could go back to the most important part which is keeping the business even more profitable (Aldrick, 2008). Royal Bank of Scotland (2011) strategy has been to invest heavily in being relevant to the needs of the customer; the bank has also created a buffer to protect the bank in times of recession. In 2007 the bank lost 3% in book value as it experienced subprime related mortgage crisis, but the bank made an effort in ensuring that the customers needs were addressed as soon as possible and assured clients that their accounts with the bank were safe. The Royal Bank of Scotland has not seen changes in sub-prime related write downs, the bank has remained stable. During the recession the bank still managed  £ 1.1 billion in half year profits, though the bank was affected by recession as it could not prevent the effects of recession on their profits and capital enhancements. When making a comparison between the two banks, they differ on how they carry out their risk strategies but have similar characteristics. 4.5.1 Implications of recession on house mortgage and corresponding subprime losses HSBC has always tried to offer options that are sustaining and a relief to those who are about to lose their home due to the effect of recession, some of the options are leaseback and sales. In terms risk management HSBC has adopted a different approach when it comes to helping customers experiencing cash flow problems in paying mortgage. The bank identifies the need to assess the urgency to save the customers financial status or his house under mortgage (Goodway, 2007); the bank allows customers to modify their loan allowing customers to pay the loan at an adjusted future time. This reduces the risk to both the customer and the bank. On the other hand Royal Bank of Scotland reduce risks by allowing variable or fixed mortgage rate, and has applied the straightforward approach where a customer mortgage application is approved decisively, this ensures the payments are as flexible as possible. The bank has also limited the bank charges it can attach to an account thus creating customer satisfaction. 4.5.2 Bank Strategies and Policies Applied The effectiveness of the banks strategy and approach can be analysed by looking at how well the banks management performed their roles. As risks are recognized the management needs to assess the risks and careful interpretation of the consequences. If the management do not carefully assess the crisis, then the risk might probably worsen until it can no longer be helped (RBS, 2011). The loan modification adopted by HSBC may not work as it is difficult to find a common ground. It may also not be possible to carry out assessment and evaluation. The Royal Bank of Scotland has minimized its risk exposure by allowing the straightforward method, thus the bank is able to assess the qualification of each customer. 4.5.3 Criteria for house mortgage loan allocation Both banks utile interest options, period of payment, and a flexible payment options. However, the criteria need to be assessed on individual application basis while at the same time maintaining objectivity and should not be applied to all. This criterion has to be flexible in terms of meeting the customer needs such as unforeseen circumstances. The current criteria risk the banks profit if it is contravened, it should allow the customers meet their monthly loan repayment deadlines. It can be very well taken into account that the system used by these two is similar to those applied by the rest of the banks in United Kingdom (Effros, 1998). However, the researcher intends to discuss the reliability of the system utilized by the two chosen banks as they encounter inevitable risks in global economic environment. A study of the HSBC system shows how well they have managed risks that have placed other banks in receivership. The study helps to understand the important issues needs to be tackled by a bank to manage risks successfully. The two banks have had good financial risk management, in terms managing the credit and market risks by having a proper risk assessment. These two risks take place when an improper assessment is made (Newman, 2006). Strong and reliable management organization has been used as a tool to help the banks strengthen and arrive to a risk free system. In case of system failures a dependable measure has been created that would minimize financial implications. The banks initiative is to push the participation of the depositors in the program and to treat them as among the driving force which affects the system. The methods are extensively researched and adapted among institutions which mean that it has been carefully checked (Banks, 2003). Extensive study on the feasibility of the issue in addressing the effectiveness of system implemented in the banking institution. In the previous discussion, regarding the imposition of law affecting banking system, the European banks are known to be sanctioned under a strict regulation whereby giving them less control over their own management. The variability in the solution technique being employed by either HSBC or the Royal Bank of Scotland cannot simply be the solution to this problem. It is the way they approach the problem with a system proven by time. The HSBC and the Royal Bank of Scotland have several financial planning portfolios in helping the customers reach their goals. The two banks have manifested expertise in providing the most expert advice on planning and investing. They consider it as their responsibility to provide their customer with the best advice available and have to be right and fitting to their customers needs. They exert and commit themselves as they go the extra mile of keeping their customers for a lifetime by answering and addressing quickly their customers growing demands and they have never failed to do so (Newman, 2006). The banks will not wait in vain but makes sure that they get to customers and provides them with a personalized service that cannot be found from other bank institutions creating confidence and trust with the customers. No wonder these two banks were voted top United Kingdom banks (Duttweiler, 2009). The assessment of the policy utilized by these two banks operates as a measure that monitors whether a prescribed risk guideline has been complied with and then makes a report accordingly (Crouhy, 2006). The design of the policy has been able to achieve the appropriate strategy, though require the framework and the funding capacity be adequately met by the funding institution. The design as a result, gives the customer the assurance and the security as they are given the key role and part in developing the system. The United Banking system has also been extensively analysed in this dissertation. Risks such as the financial and operational risks has been analysed by relating them to the strategies being employed by each bank, thus, an empirical method has been applied by exploring details about each bank. Various important factors about a banking institutions risk management system have been looked into as well. Looking into the advantages of a well-organized risk management banking system will help minimize damages brought by liquidity risks. A well-managed and well carried management plan will save the bank from recovering from years, after suffering from significant financial risks. Chapter 6 Conclusions and Recommendations 6.1 Conclusions While the data analysed show similarities in the way the two banks manage liquidity risks HSBC has prudently managed the risks better as compared to RBS. The profits before tax for the two banks indicate that RBS made losses for the last two years while HSBC has maintained profitability despite recession. Fair amount of loans have been advanced that may not pose great risk to both banks, the loan to asset rate is low for both banks and this reduces unnecessary exposure to bad debts. The ratios indicate the banks have maintained adequate capital bases that can with stand systemic risks. HSBC has managed to maintain low operating margins leveraging on technology to deliver products thus avoiding high staff expenses, on the other hand RSB government ownership reduces the risk exposure and thus the bank has been able to obtain loans from the bank after the recent recession, the operating margins are negative for the last two years indicating the bank has not been able to achieve optimal operations. After a sustained increase in the operating profits of RBS before the recession profits declined from 9807 million pounds in 2007 to losses of 2595 million pounds, this emanated from the exposure of the bank to mortgage related risks therefore to ensure the bank is protected from the risk the bank should carry out evaluation on the ability of the customers to meet the monthly mortgage requirements. The effectiveness of the risks management policies of the banks under study has been evaluated, to be able to have a wider view about risk management bank mortgage and subsequent reaction to recession has been analysed. When the risk management policies that each of the banks under consideration is evaluated, HSBC possess the most formidable liquidity risk management policy implementation well articulated in the banks reaction to the recession. The study established that the liquidity risk management plays an important role in monitoring the flow of assets into the banks system. Banks are required to have standard set of policy to affect its benefits. However, without a reliable system from which the organization management plan is created, it is easy to say that such a management plan will not be effective. It will produce no progress at all and could costly on the part of those who implement these management strategies. Since the two banks have applied similar systems; HSBC is the bank that shows the most impressive and effective strategy/ approach against liquidity risk. They always make sure to protect not only their money also they make sure that they protect the welfare of their customers. The dissertation focus on the UK banking system was ideal as the perfect niche where to study liquidity risk because the banks have a wide access to almost all parts of the world and. The banks are universal and possess that impressive banking track record. HSBC and the Royal Banks of Scotland are equally as competent and committed to a strong liquidity risk management (Casu Molyneux, 2001). However, this study was limited to the top two banks it is recommended that in order to understand liquidity risk a study should be conducted not only on those two banks but also on those ranked at the bottom. This way it is possible to understand the liquidity risk in the banking industry and serve as a basis of reference by other researchers or particular areas of concern that may be a source of risk for banks. It should also be necessary that a case study be conducted on a particular scenario focusing only on one risk management area so as to have a clearer view. The banking system is explained along with some points on how important it is to build a strong impression with international institutions by securing a reliable system within the bank by good risk management policies that serve as its foundation. A discussion on the importance of liquidity risk management policy has been explored using policies as the guidelines and indicators that help determine the confidence level in each banking system. If weak policy system is in place, it gives doubt as to the effectiveness of the risk management approach. Royal Bank of England has been analysed and the responsibility it has on the control of rates. The bank has been used as the point of reference since it has flexibility in decision making as well as its crucial to the good functioning or detriment of the whole banking institution in United Kingdom. The HSBC and the Royal Bank of Scotland has impressive financial planning portfolios that are geared towards helping the customers reach their goals. They make it their utmost responsibility to provide their customer with the best options that are available and have committed to meet the customers need. The two banks provide the most expert advice on planning and investing. An analysis of HSBC system shows that they have managed risks well, including risks that have placed other banks in receivership. The Royal Bank of Scotland equally possesses reliable strategy where all the decisions regarding risks have to be decided after careful analysis and Proper management of credit and market risks is essential in eliminating financial risks. The study established that these two risks occur when an improper assessment is made. The commitment of the management of an organization is an important element needed to help reduce the risk on possibility of a bank to collapse. It is a guiding force that a responsible banking institution must adhere to, so as to avoid the consequences of financial failure because of mismanagement. Proper risk management could be a simple way of solving liquidity risk problem which management believe is difficult to tackle. In order to protect their earnings the banks have to institute proper risk management policies as it is not always predictable where risks will emerge. The two banks under study have implemented some of the most desired risk management policies. Many banks were severely affected by the recession but HSBC and RBS still returned maximum profits despite the operating environment existing in 2010 the financial year under review. Customers are concerned with the risk management practises of their banks this is because it also determines the availability of credit and all necessary bank products that they need. 6.2 Recommendations The banks need to ensure that the risk exposure on their portfolios is minimized or eliminated completely. While the recession risks were inevitable the need to anticipate liquidity risks are imperative. HSBC had gone through a crisis however the management had foresight and planned well for the recession on the other hand RBS had to rely on government bail out to minimize the risks the mortgage portfolio had. The need to pursue vigorous risk management policies is important than before, while management decisions influence the direction of the banks, careful planning and consulting is essential. A deep analysis of the causes of the losses registered in the last two years would be a good starting point to be able to collect the mistakes. Management will be valuable in this, the ability of the management to run smoothly the banks and predict future risk will determine the bank that emerges from recession stronger. From the data analyzed while turnover for the banks increased the operating profits were affected by the recession. Like HSBC did RBS need to leverage on technology to reduce operating losses. 6.2.1 Recommendations on Managing liquidity through Organizational structure and Governance It is imperative that the two banks define the liquidity risks exhaustively this will ensure that the risks the banks are exposed to are identified and placed in respective risk category, then the risks are communicated to the respective groups to that they can identify, understand and evaluate liquidity risks that the banks face including new lines of business, products, acquisitions, alliances or any initiative that the banks intend to participate. A clear understanding of the various risks is essential particularly distinguishing Market liquidity and funding liquidity risks. R Study on Financial Statements and Ratios of Banks Study on Financial Statements and Ratios of Banks 4.0 Introduction The data analysis chapter has been divided into two parts. In the first part, I have tried to do some sort of quantitative analysis. The first part is based on the financial statements and key ratios of both the chosen banks. Again it was broken down into sub-points like the analysis of data before recession and after recession. Some key ratios were calculated, compared and analysed from the financial data of last 10 years for both the banks. The second part of this chapter is a mixture of literature review data analysis and some points were written with reference to the analysis done in first part in my own words. 4.1 Analysis of Data Derived from Financial Statements and Ratios 4.1.1 Bank Status before Recession After Recession To be able to answer our research questions it is imperative to look at the two companies data from financial statements, this will reveal the risks inherent in each banks operation. The analysis utilizes data from the financial statements of the banks under review from year 2005 to 2010 just before recession started. While the two banks have similarities in risk management RBS use pounds while HSBC use dollars as the basis currency in the books of accounts, while this may hinder the analysis especially quantitative analysis the general data increase and decrease is an important aspect sufficient for this study. 4.2 Financial Position of RBS 4.2.1 Financial Position of RBS before recession (2004-2005, 2005-2006, 2006-2007) The Royal Bank of Scotland turnover had been on steady increase, in the financial year ending December 2007 the turnover was  £30,366 million; in 2005 the turnover was  £25902 million while in the year ending 2006 turnover increased to  £28002 million. In 2005 operating profits were  £7936 million while in 2006 operating profits increased marginally to  £9186 and in 2007  £9807 million. Profits before tax has been on steady increase from  £7936million in 2005 to  £9186 and  £9832 million in 2006 and 2007 million respectively. 4.2.2 Financial Position of RBS After Recession (2007-2008, 2009-2010) The turnover for year 2008 was  £25868 Million and finally the turnover for the year ending December 2009 was  £38690 million. In but in 2008 and 2009 losses of  £40836 and  £2595 were recorded respectively, this was after recession started. The full details for the full year 2010 results have not been announced but the first half results profits had increased by 44% to  £3950 million. Table 1 Royal Bank of Scotland Profit and loss Extracts Year Ended 31 Dec 2010 2009 2008 2007 2006 2005  £millions  £  £  £  £  £  £ Turnover 38690.0 25868.0 30366.0 28002.0 25902.0 Operating Profit Q3 726 -2595 -40836.0 9807 9186 7936 Profits before tax -2595 -40836.0 9832.0 9186.0 7936.0 Source; RBS website 4.3 Financial Positions of HSBC 4.3.1 Financial Positions of HSBC before recession On the other hand the turnovers for HSBC on the financial years under review were as follows; year 2007 the turnover was $ 87601 million, $ 61704 million in 2005 and $70070 million in 2006 in terms of operating profits, the group managed $20966.0m, $21240.0m and $22709.0m in years 2005, 2006 and 2007 respectively. Profits before tax were $20966m, $22086m, and $24212m in years 2005, 2006, and 2007. 4.3.2 Financial Positions of HSBC After recession The group managed a turnover of $ 88571 million and $ 78631 million in 2008 and 2009 accounting periods respectively. HSBC recorded $ 22709 million profit in 2007; however the profits declined substantially to $7646 million in 2008 and $ 5298 in 2009 again profits were affected as recessionary fears started. In third quarter of 2010 the profits increased marginally. Table 2 HSBC Profit and Loss Extracts Year Ended 31 Dec 2010 2009 2008 2007 2006 2005 $millions $ $ $ $ $ $ Turnover 78631 88571 87601 70070 61704 Operating Profit 5298 7646 22709 21240 20966 Profit before tax 7079 7079 9307 24212 20086 20966 Source: HSBC website 4.4 Tabular, Graphical representation, interpretation and analysis of key ratios of HSBC RBS for last 10 years In the next few pages, I have tried to present the data in tables, graphs and charts. Some of the data was presented and calculated for last 10 years and some for the last 5-6 years. Some of the key ratios as given below were calculated, analysed and compared for both the banks. Net Interest Margin Return on equity Capital adequacy Liquidity ratio Non-performing assets ratio Loans Turnover ratio Loans to Assets ratio Gross Yield on Earning Assets (GYEA) Table 3 HSBC Ratio Analysis in percentage Year Ending 31 Dec 2010 up to June 2009 2008 2007 2006 2005 2004 2003 2001 Net Interest Margin 3.25 3.09 3.05 2.00 3.4 2.04 2.60 2.54 2.24 ROE 11.1 12.3 11.21 9.62 11.60 12.25 11.2 15.6 13.21 Capital Adequacy 11.50 11.60 11.75 10.89 10.97 11.01 11.12 11.31 11.63 Liquidity ratio 2.20 2.50 3.62 4.21 5.31 6.54 1.23 1.11 2.15 Nonperforming assets ratio 2.17 2.27 2.12 2.14 2.16 2.14 2.11 2.01 2.00 Loans Turnover ratio 66.2 55.2 25.10 29.2 54.0 59.1 67.12 74.21 76.45 Loans to Assets ratio 0.60 0.40 0.22 0.15 0.12 0.113 0.21 0.28 0.32 GYEA 5.21 4.60 4.49 4.36 4.24 4.42 4.68 4.29 3.26 Source: Data glanced from HSBC website and did personal analysis. Figure 4 HSBC ratio analyses (Note: all the figures are in percentage) Table 4 RBS Ratio analysis as a percentage Year Ending 31 Dec 2010 up to June 2009 2008 2007 2006 2005 2004 2003 2001 Net Interest Margin 1.97 1.76 1.70 1.75 1.83 1.91 2.01 2.03 1.92 ROE 12 11.5 11.4 9 9.6 9.12 14 11.2 10 Capital Adequacy 12.51 11.44 11.95 12.98 11.72 11.10 12.21 13.11 13.23 Liquidity Ratio 3.21 2.42 3.21 5.22 3.23 3.29 2.23 2.11 3.15 Nonperforming Assets Ratio 11.1 14.1 16.1 12.15 12.11 12.10 11.11 11.01 10.10 Loans Turnover Ratio 66.9 45.25 44.15 39.2 44.0 49.12 57.21 63.32 66.00 Loans to Assets Ratio 1.56 1.45 1.35 1.40 1.19 0.20 0.89 0.46 0.56 GYEA 3.33 4.6 2.12 4.06 4.12 3.28 2.86 2.92 2.45 Source: Data glanced from RBS website and did personal analysis Fig. Comparison of the two banks PL data Generally over the years the turnover of the two banks has been increasing but the increase in HSBC turnover has been moderate while that of RBS has been steep. HSBC has managed to remain profitable for the period of analysis showing that the company has been able to mitigate the risks well as compared to RBS. RBS made substantial operating losses amounting to 2595 million in 2009 and had to be supported by the government as a result of subprime mortgage crisis. The data show that HSBC has adopted prudent management even though profits declined, the ratios show the group has maintained strong capital base Findings During the two years before year 2009 and after the two banks were adversely affected by economic condition. The profit and loss analysis from the two banks show that HSBC has been able to tackle liquidity risks well as it has been able to maintain profitability through out even during the recession on the other hand RBS was affected and made losses in 2007, 2008 and 2009 but the half year available indicate the bank has returned to profitability after the government support. The profitability before tax is shown in the figure below. Figure 5 Source: Data glanced from RBS and HSBC websites and did personal analysis Note: HSBS figures are in million dollars while figures for RBS are in million pounds. 4.5 Literature Review Data Analysis This dissertation presents the underlying strategies and approaches applied by the top UK banks in learning the differences between HSBC and Royal Bank of Scotland. The strategies and approaches are observed before and after the recession period when assets and stocks were reducing in value putting the banks in worst case financial scenario. To compare their financial, business and operational risks concern will create a bigger picture. The aim is to determine which between the two banks has a better and effective approach and strategy in the risk-reduction initiatives (Drew Michael, et al., 1996) Banks in United Kingdom have relied upon a proven system of strong liquidity risk management. This has been in existence for over three years now and since the system was started banks have made it a priority to update their systems of risk management to keep abreast with the changing demands of the society and technological innovations associated with risk management. Financial stability is easily achieved by following less complicated process and that is to stick to the rules and created in less difficult way that whenever you try to explain it to a customer or client. The grasp of the policy will then be easily absorbed (Issing, 2004). The liquidity risk management of most United Kingdom has been seen to be strong and responsive whenever banks experience risks. Banks have to ensure that they exercise prudent risk management to be able to provide customer satisfaction, but some of the banks are less committed to the task to minimize their exposure to risks. It can be costly to the bank and expose the bank to court cases, licence cancellation by the supervisory authorities and customers withdrawing from the bank. The only way to do this is to create a reliable system of liquidity risk management (Issing, 2004). Risk management actions count the most in the future and especially in setting the reputation of the banks. Extra effort is required in creating policies that will withstand the effect of any risks. Being able to communicate the recent risk situation among the team members will help a lot in the resolution and in effectively carrying out the regulations which they intended to implement for the banks organization. A manifestation of a high level of activity would spell a lot of difference compared to those who lag behind due to poor management risk planning (Kahf Homud, 1998). An effective liquidity risk management is able to make anticipations on the occurrence of future risks. There is also a type of liquidity risk management that can only provide satisfactory level of service or performance, however, it possess certain weakness though very insignificant, it may still deliver anticipated results like those managements that are strong since it only manifest very minor signs ineffectiveness (Bank of England 2007). HSBS and the Royal Bank of Scotland are not just the top banks in United Kingdom they are the two banks that show an impressive liquidity risk management. This record could be very much proven by the profits earned annually and the impression they make among their customers is excellent and they never settle for anything less. The two banks have applied similar systems although HSBC is the bank that shows the most impressive and effective strategy/ approach against a liquidity risk. They always make sure to protect not only their money but also protect the welfare of their customers and intend to move with them and manage their finances by avoiding incompetence in dealing with liquidity risks. HSBS guides their customer from the time they enter the institution until the time they become part of a much growing and impressive banking industry (Bank of England 2007). In the last two years HSBC only experienced short term recession only, they had prepared for the recession, through management and the fact that they had experienced a crisis before and had rectified it by creating a frame work that worked well for the bank. Prudent risk management at HSBC can be analysed by looking at the profits that the bank has earned recently where the bank doubled its half-year profits by posting  £7 billion as at August 2010, this is at a time when smaller banks were feeling the effects of recession. Analysts have seen the capabilities of the bank base from their well-managed systems and strategies. They had already expected such things to happen so there is nothing surprising about that (Goodway, 2007). The banks have taken all necessary precautions and the management maintains optimism that in case of risks they will find a way out. The way the two banks react to problems is always quick thus they are able to find real time solutions. This strategy is a good way of keeping loyal customers. The primary goal is to offer consistency in performance whether the nature of the transaction differs or not, this is exemplified by the HSBC spirit of being consistent and reliable in every possible way. One of the ways that the banks have avoided the risks is to anticipate the risks thus making in advance plans. HSBC has made a point to anticipate risks and make plans to mitigate or avoid the risks completely, this is seen in the banks preparation of the recession in the last two years the bank made adequate plans and adopted prudent lending, adopted technology and minimized operations expenses, while other bank were unprepared and had to be rescued by the government. HSBC operates inn flexible economies, this has been explained by looking at the diversity of the markets it operates, and this gave the bank diversity as not all markets experienced recession. HSBC reaction to risks is a testimony to its objective to effectively handle risks, one such objective identified in the study was is to create liquidity through making an arrangement to leaseback or sell assets whenever loans are defaulted (Goodway, 2007) On the other hand, the Royal Bank of Scotland has similar strategies, before recession the management had drawn a plan on risk management, this is exemplified by the fact that they didnt change their banking rates during this period. Although they needed to take precautions on the insurance, once this has been resolved they could go back to the most important part which is keeping the business even more profitable (Aldrick, 2008). Royal Bank of Scotland (2011) strategy has been to invest heavily in being relevant to the needs of the customer; the bank has also created a buffer to protect the bank in times of recession. In 2007 the bank lost 3% in book value as it experienced subprime related mortgage crisis, but the bank made an effort in ensuring that the customers needs were addressed as soon as possible and assured clients that their accounts with the bank were safe. The Royal Bank of Scotland has not seen changes in sub-prime related write downs, the bank has remained stable. During the recession the bank still managed  £ 1.1 billion in half year profits, though the bank was affected by recession as it could not prevent the effects of recession on their profits and capital enhancements. When making a comparison between the two banks, they differ on how they carry out their risk strategies but have similar characteristics. 4.5.1 Implications of recession on house mortgage and corresponding subprime losses HSBC has always tried to offer options that are sustaining and a relief to those who are about to lose their home due to the effect of recession, some of the options are leaseback and sales. In terms risk management HSBC has adopted a different approach when it comes to helping customers experiencing cash flow problems in paying mortgage. The bank identifies the need to assess the urgency to save the customers financial status or his house under mortgage (Goodway, 2007); the bank allows customers to modify their loan allowing customers to pay the loan at an adjusted future time. This reduces the risk to both the customer and the bank. On the other hand Royal Bank of Scotland reduce risks by allowing variable or fixed mortgage rate, and has applied the straightforward approach where a customer mortgage application is approved decisively, this ensures the payments are as flexible as possible. The bank has also limited the bank charges it can attach to an account thus creating customer satisfaction. 4.5.2 Bank Strategies and Policies Applied The effectiveness of the banks strategy and approach can be analysed by looking at how well the banks management performed their roles. As risks are recognized the management needs to assess the risks and careful interpretation of the consequences. If the management do not carefully assess the crisis, then the risk might probably worsen until it can no longer be helped (RBS, 2011). The loan modification adopted by HSBC may not work as it is difficult to find a common ground. It may also not be possible to carry out assessment and evaluation. The Royal Bank of Scotland has minimized its risk exposure by allowing the straightforward method, thus the bank is able to assess the qualification of each customer. 4.5.3 Criteria for house mortgage loan allocation Both banks utile interest options, period of payment, and a flexible payment options. However, the criteria need to be assessed on individual application basis while at the same time maintaining objectivity and should not be applied to all. This criterion has to be flexible in terms of meeting the customer needs such as unforeseen circumstances. The current criteria risk the banks profit if it is contravened, it should allow the customers meet their monthly loan repayment deadlines. It can be very well taken into account that the system used by these two is similar to those applied by the rest of the banks in United Kingdom (Effros, 1998). However, the researcher intends to discuss the reliability of the system utilized by the two chosen banks as they encounter inevitable risks in global economic environment. A study of the HSBC system shows how well they have managed risks that have placed other banks in receivership. The study helps to understand the important issues needs to be tackled by a bank to manage risks successfully. The two banks have had good financial risk management, in terms managing the credit and market risks by having a proper risk assessment. These two risks take place when an improper assessment is made (Newman, 2006). Strong and reliable management organization has been used as a tool to help the banks strengthen and arrive to a risk free system. In case of system failures a dependable measure has been created that would minimize financial implications. The banks initiative is to push the participation of the depositors in the program and to treat them as among the driving force which affects the system. The methods are extensively researched and adapted among institutions which mean that it has been carefully checked (Banks, 2003). Extensive study on the feasibility of the issue in addressing the effectiveness of system implemented in the banking institution. In the previous discussion, regarding the imposition of law affecting banking system, the European banks are known to be sanctioned under a strict regulation whereby giving them less control over their own management. The variability in the solution technique being employed by either HSBC or the Royal Bank of Scotland cannot simply be the solution to this problem. It is the way they approach the problem with a system proven by time. The HSBC and the Royal Bank of Scotland have several financial planning portfolios in helping the customers reach their goals. The two banks have manifested expertise in providing the most expert advice on planning and investing. They consider it as their responsibility to provide their customer with the best advice available and have to be right and fitting to their customers needs. They exert and commit themselves as they go the extra mile of keeping their customers for a lifetime by answering and addressing quickly their customers growing demands and they have never failed to do so (Newman, 2006). The banks will not wait in vain but makes sure that they get to customers and provides them with a personalized service that cannot be found from other bank institutions creating confidence and trust with the customers. No wonder these two banks were voted top United Kingdom banks (Duttweiler, 2009). The assessment of the policy utilized by these two banks operates as a measure that monitors whether a prescribed risk guideline has been complied with and then makes a report accordingly (Crouhy, 2006). The design of the policy has been able to achieve the appropriate strategy, though require the framework and the funding capacity be adequately met by the funding institution. The design as a result, gives the customer the assurance and the security as they are given the key role and part in developing the system. The United Banking system has also been extensively analysed in this dissertation. Risks such as the financial and operational risks has been analysed by relating them to the strategies being employed by each bank, thus, an empirical method has been applied by exploring details about each bank. Various important factors about a banking institutions risk management system have been looked into as well. Looking into the advantages of a well-organized risk management banking system will help minimize damages brought by liquidity risks. A well-managed and well carried management plan will save the bank from recovering from years, after suffering from significant financial risks. Chapter 6 Conclusions and Recommendations 6.1 Conclusions While the data analysed show similarities in the way the two banks manage liquidity risks HSBC has prudently managed the risks better as compared to RBS. The profits before tax for the two banks indicate that RBS made losses for the last two years while HSBC has maintained profitability despite recession. Fair amount of loans have been advanced that may not pose great risk to both banks, the loan to asset rate is low for both banks and this reduces unnecessary exposure to bad debts. The ratios indicate the banks have maintained adequate capital bases that can with stand systemic risks. HSBC has managed to maintain low operating margins leveraging on technology to deliver products thus avoiding high staff expenses, on the other hand RSB government ownership reduces the risk exposure and thus the bank has been able to obtain loans from the bank after the recent recession, the operating margins are negative for the last two years indicating the bank has not been able to achieve optimal operations. After a sustained increase in the operating profits of RBS before the recession profits declined from 9807 million pounds in 2007 to losses of 2595 million pounds, this emanated from the exposure of the bank to mortgage related risks therefore to ensure the bank is protected from the risk the bank should carry out evaluation on the ability of the customers to meet the monthly mortgage requirements. The effectiveness of the risks management policies of the banks under study has been evaluated, to be able to have a wider view about risk management bank mortgage and subsequent reaction to recession has been analysed. When the risk management policies that each of the banks under consideration is evaluated, HSBC possess the most formidable liquidity risk management policy implementation well articulated in the banks reaction to the recession. The study established that the liquidity risk management plays an important role in monitoring the flow of assets into the banks system. Banks are required to have standard set of policy to affect its benefits. However, without a reliable system from which the organization management plan is created, it is easy to say that such a management plan will not be effective. It will produce no progress at all and could costly on the part of those who implement these management strategies. Since the two banks have applied similar systems; HSBC is the bank that shows the most impressive and effective strategy/ approach against liquidity risk. They always make sure to protect not only their money also they make sure that they protect the welfare of their customers. The dissertation focus on the UK banking system was ideal as the perfect niche where to study liquidity risk because the banks have a wide access to almost all parts of the world and. The banks are universal and possess that impressive banking track record. HSBC and the Royal Banks of Scotland are equally as competent and committed to a strong liquidity risk management (Casu Molyneux, 2001). However, this study was limited to the top two banks it is recommended that in order to understand liquidity risk a study should be conducted not only on those two banks but also on those ranked at the bottom. This way it is possible to understand the liquidity risk in the banking industry and serve as a basis of reference by other researchers or particular areas of concern that may be a source of risk for banks. It should also be necessary that a case study be conducted on a particular scenario focusing only on one risk management area so as to have a clearer view. The banking system is explained along with some points on how important it is to build a strong impression with international institutions by securing a reliable system within the bank by good risk management policies that serve as its foundation. A discussion on the importance of liquidity risk management policy has been explored using policies as the guidelines and indicators that help determine the confidence level in each banking system. If weak policy system is in place, it gives doubt as to the effectiveness of the risk management approach. Royal Bank of England has been analysed and the responsibility it has on the control of rates. The bank has been used as the point of reference since it has flexibility in decision making as well as its crucial to the good functioning or detriment of the whole banking institution in United Kingdom. The HSBC and the Royal Bank of Scotland has impressive financial planning portfolios that are geared towards helping the customers reach their goals. They make it their utmost responsibility to provide their customer with the best options that are available and have committed to meet the customers need. The two banks provide the most expert advice on planning and investing. An analysis of HSBC system shows that they have managed risks well, including risks that have placed other banks in receivership. The Royal Bank of Scotland equally possesses reliable strategy where all the decisions regarding risks have to be decided after careful analysis and Proper management of credit and market risks is essential in eliminating financial risks. The study established that these two risks occur when an improper assessment is made. The commitment of the management of an organization is an important element needed to help reduce the risk on possibility of a bank to collapse. It is a guiding force that a responsible banking institution must adhere to, so as to avoid the consequences of financial failure because of mismanagement. Proper risk management could be a simple way of solving liquidity risk problem which management believe is difficult to tackle. In order to protect their earnings the banks have to institute proper risk management policies as it is not always predictable where risks will emerge. The two banks under study have implemented some of the most desired risk management policies. Many banks were severely affected by the recession but HSBC and RBS still returned maximum profits despite the operating environment existing in 2010 the financial year under review. Customers are concerned with the risk management practises of their banks this is because it also determines the availability of credit and all necessary bank products that they need. 6.2 Recommendations The banks need to ensure that the risk exposure on their portfolios is minimized or eliminated completely. While the recession risks were inevitable the need to anticipate liquidity risks are imperative. HSBC had gone through a crisis however the management had foresight and planned well for the recession on the other hand RBS had to rely on government bail out to minimize the risks the mortgage portfolio had. The need to pursue vigorous risk management policies is important than before, while management decisions influence the direction of the banks, careful planning and consulting is essential. A deep analysis of the causes of the losses registered in the last two years would be a good starting point to be able to collect the mistakes. Management will be valuable in this, the ability of the management to run smoothly the banks and predict future risk will determine the bank that emerges from recession stronger. From the data analyzed while turnover for the banks increased the operating profits were affected by the recession. Like HSBC did RBS need to leverage on technology to reduce operating losses. 6.2.1 Recommendations on Managing liquidity through Organizational structure and Governance It is imperative that the two banks define the liquidity risks exhaustively this will ensure that the risks the banks are exposed to are identified and placed in respective risk category, then the risks are communicated to the respective groups to that they can identify, understand and evaluate liquidity risks that the banks face including new lines of business, products, acquisitions, alliances or any initiative that the banks intend to participate. A clear understanding of the various risks is essential particularly distinguishing Market liquidity and funding liquidity risks. R