Family nurse practicioner Essay Example | Topics and Well Written Essays - 250 words - 1

Family nurse practicioner - Essay Example 1). There are several universities that offer a Family Nurse Practitioner Program (FNPP). According to US News and World Report in 2011, the top five graduate schools for FNPP include: 1). University of California- San Fransisco (UCSF); 2) University of Washington; 3) University of Pennsylvania; 4) University of Michigan – Ann Arbor and;5) Columbia University. In UCSF, their Master of Science Program for FNP is a full-time, two-year course study. As an additional requirement, one is eligible to take up the course if he or she has at least 2 years of experience working as a Registered Nurse (RN). UCSF also offers a 5-6 quarter Post-Master’s option for those want to obtain FNP certification. This includes all clinical and specialty core courses. Year 1 will cover clinical practicum while Year 2 will focus on residencies that will provide supervised clinical experience (UCSF 1). As a specialty healthcare provider, the primary role of a certified FNP is to meet the healthcare needs of the individual and family though comprehensive primary care provision within their lifespan. Other roles and responsibilities of a certified FNP includes: 1) diagnosing illnesses; 2) prescribing medication and therapy; 3) conducting routine check-ups; 4) ordering patient lab tests; 5) assisting in minor surgical procedures; and 6) focusing on disease prevention through their independent work as well as collaboration with other primary care clinicians, healthcare and social service professionals (Johnson & Johnson, Inc.

GNU Public License Essay Example for Free

GNU Public License Essay There are multiple operating systems out there available for a number of platforms, or systems, to run. The most popular of which, is Microsoft Windows. As we all know, Windows is not a free program and Microsoft is trying to instill a subscription fee to use Microsoft products. For years, the money hungry corporation has left many people searching for an alternative. In comes Linux. Linux is a UNIX based platform that uses the GNU General Public License. Linux is a very popular platform for a multitude of reasons, but above all else, it’s because it’s a free platform that has become what it is now due to GNU. The purpose of this paper is not, in fact, to speak about Linux, Windows, or any other operating system, but to talk about what the GNU public license is, and it’s role in information technology today. So what is the GNU public license? According to â€Å"GNU Operating System† (2007), â€Å"The GNU General Public License is a free, copyleft license for software and other kinds of works.† (Preamble). What does this mean? Well, a copyright license for software, or any other type of works, are designed to take away the freedom of developers to share or change the software or work licensed. For example, Microsoft has a license agreement that prevents you from doing any modifications to any of their software, and stipulates any fees or distributions with that software. The exact opposite is true for the GNU General Public License as its intentions is to guarantee your freedom to modify and share any and all versions of a program or software covered by the GNU. This, in turn, ensures the software, or works, will remain free for all of its users. The GNU Public Licenses are designed to enable individuals the right to freely distribute copies of the free software, with provided source code, that you can modify and charge for if you like. If you modify it, add your own source coding to enhance or individualize the program, you have the right to charge for the software. You can also use parts, or all, of the coding from these software applications in new free programs. In order to protect your rights, the GNU prevents others from denying, or  forcing you to relinquish any rights you have to the software. Now, with that being said, if you wish to distribute copies of the software, modify it, or sell it, you will need to comply with certain responsibilities to respect the freedom of other potential users of this software. So, if you decide to distribute copies of a program you’ve been working on under the GNU, free or otherwise, you should pass on the same rights to others that you received yourself. This means you need to make the source code available for those just as it was made available for you. Developers using the GNU general public license protect your rights in two ways. This is done by asserting a copyright on the software, as well as offering you access to this license to legally give you permission to modify, copy or distribute it. On the same note, for the author or developers’ protection, the GPL states there is no warranty to cover any software obtained under the GNU. For the protection of the developers, or any authors, the GPL requires that any modified versions must be marked as changed, so that any potential problems will not be attributed mistakenly to any previous developers. Finally, software patents constantly threaten all programs. To ensure their protection, the GPL assures that all patents cannot be used to render any program as non-free. The GNU general public license is a remarkable agreement giving many developers the free reign to modify and personalize software that they did not originally develop. This allows businesses the right to customize programs to fit their needs, and not be liable for any wrongdoing by modifying the original software. I am a huge fan of the GNU, and highly recommend you look into the use of GNU software as well. References GNU Operating System. (2014). Retrieved from http://www.gnu.org/copyleft/gpl.html Stalling, W. (2012). Operating Systems: Internals and Design Principles (7th ed.). Retrieved from https://newclassroom3.phoenix.edu/Classroom/#/contextid/OSIRIS:44214502/context/co/view/activityDetails/activity/987e268c-c478-4f85-ab08-ea8d45bb90a3/expan

Islamic Banking Deposits and Profitability Relationship

Islamic Banking Deposits and Profitability Relationship The purpose of this research study is to analyze the impact of Islamic Banking Deposits (Investment, Savings and Current accounts) on the profitability measure ROE of the Islamic banking industry in Paksitan. For this purpose, time series data of eleven quarters covering the period 2007 to 2009 is taken for the required variables from State Bank of Pakistans quarterly editions of the Islamic banking bulletin. The results showed that all the deposit variables had a significant positive relation with the profitability of Islamic banks. The aim is to contribute to the literature on deposit-profitability relationship of Islamic banks. Islamic banking is a banking activity based on Islamic principles, which do not allow the paying and receiving of interest (riba) and promotes profit sharing in the conduct of banking business. (Ghazali, 2008). According to the latest quarterly edition of State Bank of Pakistans Islamic Banking Bulletin?, the total Shariah-compliant assets worldwide have grown to about US$ 700 billion â€Å" with annual growth exceeding 10.0 percent during the past decade and are projected to grow to US$ 1.6 trillion by 2012. State Bank of Pakistans strategic plan for Islamic banking industry launched in 2008, aims to increase the size of the Islamic banking industry to 12.0 percent (of total banking assets) by 2012. Islamic financial institutions do not only play a vital role in resource mobilization, resource allocation and employment but are also actively involved in the course of implementing government monetary policy. Apart from offering nearly all traditional banking facilities, Islamic banks also assist domestic and international trades. Seeing the potential of the Islamic market, western conventional-based financial institutions such as Citibank, JP Morgan, Deutsche Bank, ABN Amro and American Express have introduced interest-free products to customers. Similarly, multinational corporations such as General Motors, IBM and Dewoo Corporation have already begun to use interest-free services.(Haron and Azmi, 2003). Studies that assess the influence of various factors that determine Islamic banks profitability are still at initial stage. Few attempts have up till now been made to empirically analyze the Islamic banks performance. In the Islamic banking literature, the work of Haron (1996a) was the first attempt to examine factors that contributed towards Islamic banks profitability. Most of the research used multiple regression analysis technique in measuring the relationship among the determining factors and profitability ratios. Extending the previous work in Islamic banks performance, this paper examines the strength of relationship between deposit variables and profitability of Islamic banks using univariate regression methodology. By studying the association between Islamic banksÃ… ¸ performance and the deposit variables, this paper contributes to the on-going discussion on the deposits and profitability relationship of Islamic banks. The paper is divided into seven sections. The literature review on determinants of Islamic bank performance is highlighted in Section 2. Section 3 examines the methodology used in analyzing the relationship between the deposits variables used in this study and the performance of Islamic banks. Section 4 presents the discussion and implication. The references are listed in section 5. The tables are listed in section 6 and figures in section 7. Literature Review The whole foundation of Islamic Finance is that the two sides of the equation (i.e. the fund-providers and the fund-users) work in agreement as partners, without depositors being assured of any return from those who use their money. In practice, Islamic banks draw approximately three-quarters of the capital from their depositors, and do not guarantee any precise level of return to these fund-providers. (Shubber and Alzafri,2008). Ghafoor (1995) states that all Islamic banks have three kinds of deposit accounts: current, savings and investment. Current or demand deposit accounts are almost the same as in all conventional banks. Deposit is assured. Savings deposit accounts function in different ways. In some banks, the depositors permit the banks to make use of their money but they attain a guarantee of being paid the complete amount back from the bank. Banks adopt a number of methods of inducing their customers to deposit with them, but profit is not promised. In others, savings accounts are treated as investment accounts but with less strict conditions as to withdrawals and minimum balance. Capital is not assured but the banks take care to invest capital from such accounts in fairly risk-free short-term projects. Therefore, lower profit rates are expected and that too only on a section of the average minimum balance on the ground that a high level of reserve funds need to be kept at all times to meet up withd rawal demands. Contrastingly, Investment deposits are accepted for a predetermined or indefinite period of time and the investors consent in advance to share the profit (or loss) in an agreed proportion with the bank. Capital is not assured. (Ghafoor, 1995). Some IFIs (Islamic Financial Institutions) classify deposits in terms of wadiah or amanah. Current accounts of IFIs are regarded as qard hasan or qard (alternatively, as wadiah/amanah). (Farooq, 2008). Qard al-Hasana is defined as deposits whose full repayment on demand is guaranteed by bank. (Ahmad, 1994). The deposits in the current account are regarded as if they are loans from the customers to the bank and therefore, bear no yield to the account holders.? (Al-Jarhi and Iqbal. 2001). Deposit accounts are neither a liability nor equity capital. They are a hybrid? source of capital, and must be acknowledged as such. Depositors are partners with the bank, but enjoy no ownership rights. (Shubber and Alzafri,2008). Sudin Haron (1996) mentions that the law allows the banks to accept two types of deposits, i.e., qard al-hasanah deposits and term investment deposits. The qard al-hasanah deposits includes current as well as savings accounts which vary in their operational rules. (Ahmad, 1994). If it is allowed that the borrower can pay extra money voluntarily, then treating deposits as qard-hasan allows the banks as the borrowers to pay extra money to the depositors (lenders). Unlike savings account services at conventional banks, where depositors are automatically rewarded upon appointment of their funds, returns to savings account holders are reliant on the Shariah (Islamic laws) principles which are practiced by Islamic banks when offering this service. When wadiah (trusteeship) or qard hassan (benevolent loan) are used, the returns are entirely at the discretion of the banks. (Sudin Haron, 1996). Nienhaus, (2004) argues that if the customers of Islamic banks desire a return on their funds, they should pay into investment accounts (also called participation accounts or PLS, profit and loss sharing accounts). Whereas, credit balances on these accounts are not considered deposits in the conventional sense. The returns on Islamic banks investment accounts are not fixed in advance; the customers participate by a certain proportion in the financial outcome of the utilization of their investment funds by the bank. These results could also result in a loss. In case of loss, the clients will have to bear a portion of the loss which would reduce the nominal value of the credit balances of their respective investment accounts. In such a situation, the clients cannot claim a full reimbursement of the money paid in. The full reimbursement, however, is constituent for a deposit in the strict sense. (Nienhaus, 2004). Rosly and Zaini, (2008) say that the public in general put their money in banks for either fulfilling transactional needs or for investment needs. To suffice the transactional objective, Islamic banks offer services such as wadiah yad dhamanah deposit, which facilitates safekeeping of their deposit money with guarantee services. In this product, depositors no longer deposit funds to receive a fixed income. Instead, they place their deposits for protection.`Wadiah yad dhamanah means safekeeping with guarantee. Wadiah yad dhamanah depositors permit the Islamic bank to invest their money in return for deposit safety that they got for free. Since the caretaker service is given without a fee, the Islamic bank holds no legal compulsion to pay depositors a predetermined return and may do so only on voluntary basis. In this way, the bank holds choice on profit distribution policy in the form of gift (hibah). The same is not correct for Islamic fixed deposits, frequently known as mudarabah in vestment deposits. In this partnership composition, no guarantee is given to capital protection and fixed income, as it runs under equity principle. It is a precarious product as the underlying contract is based on profitâ€Å"loss sharing system. Profits are shared only in case of performing investments, while capital may depreciate or even shrink if the investment ends in losses. (Rosly and Zaini, 2008). Haron and Azmi, (2004) discuss that similar to conventional banks, Islamic banks also rely on depositors money as a key source of fund. Bank Muamalat Malaysia Berhad for example, had total deposits amounting to 94 percent of total liabilities and shareholders equity at the end of December 2003. While in the case of Jordan Islamic Bank, Islamic Bank of Bangladesh, Bank Muamalat of Indonesia, and Bank Shariah Mandiri of Indonesia, the corresponding amounts were 94%, 86%, 76%, and 79%, respectively. These figures reveal the vast high total of the depositors money as a supply of finance for Islamic banks. Hence, it becomes indispensable for the management of Islamic banks to identify the factors that are most likely to convince customers decision making in depositing their capital with Islamic banks. (Haron and Azmi, 2004). With the exception of a study done by Metawa and Almossawi (1998) where religion was seen as a reason influencing customers choice to support Islamic banks in Bahrain, other studies have proven counter wise. The evidence from studies done in Sudan and Turkey, for example, revealed that religion was not the main motive for customers choosing Islamic banks (Erol and El-Bdour, 1989). Likewise, studies conducted in Malaysia and Singapore revealed both religion and profit as the explanation for people maintaining their association with Islamic banks (Haron et al., 1994; Gerrad and Cunningham, 1997). Since depositors are attracted by profits, it is vital for Islamic banks management to be aware of the fact that return rates on deposits persuade their customers decision to deposit. (Haron and Azmi, 2004). Relating to commercial banks deposit composition, Hester and Zoellner (1966) and Heggested (1977) found that time and savings deposits had a significant inverse correlation with profitability. Smirlocks (1985) findings demonstrated a significant positive relationship amid demand deposits and profits. In contrast, Fraser and Rose (1971) found that loan rate; time deposit rate and loan-to-deposit ratio had no outcome on profitability. Haron (1996a) found evidence to suggest that current, savings and investment accounts of Islamic banks are positively related to profitability. Fraser et al (1974) considered operating costs, deposit and loan structures as factors within the control of management and found that the factor which had the biggest control on bank performance was bank cost followed by banks deposit and loan composition. Heggested (1977) proved that banks heavily devoted to time and savings deposits earned considerably lower returns than banks which have higher reliance on demand deposits. Smirlock (1985) confirmed that demand deposits were a cheaper source of funds and had a positive impact on bank profits. In the literature, the majority of studies found that savings and time deposits have a negative relationship with profitability, while a positive relationship has been found for current account deposits. Haron (2004) found that nearly all deposit structure variables had no significant relationship with the profitability ratios. Deposits in current account, was the only variable which had a significant relationship with Banks portion of income as a percentage of total assets and Net profit before tax as a percentage of total assets. Each 1% increase in the current account holdings increased the banks income by 0.034% and profit before tax by 0.036%. This end result was in line with the findings reported by Smirlock (1985). Since a current account service is considered a cost-free facility, it is anticipated that the more funds deposited into this account, the more Islamic banks would stand to profit. Interestingly, no significant relationship was found between current account deposits and Total income as a percentage of total assets, which implied that an increase in current accounts does not generate more proceeds to the bank as a whole but only functions as a cost saving measure. That is, no returns are paid to these depositors. In the case of savings and investment accounts, even though their relationships with all profitability ratios were at an insignificant level, the signs of their regression coefficients warranted further clarification. No contradiction with the findings of conventional banking literature with regard to savings accounts was apparent. A negative relationship was found between Savings account deposits and the profitability measures. This result suggests that any increase in savings accounts will reduce profits and it corresponds to the findings in the current banking literature (see for example Hester and Zoellner, 1966; and Heggested, 1977). The results on Investment account deposits in Harons (2004) study are not similar to those findings reported in earlier researches. Hester and Zoellner (1966) and Heggested (1977), for example, found that fixed deposit facilities had an inverse relationship with profitability. Since some of the characteristics of investment deposits at Islamic banks are similar to the fixed deposit facilities of conventional banks, it is expected that more funds deposited into these accounts would result in less profit to the bank. In contrast, Smirlock (1985) believed that an increasing amount in fixed deposits would have a positive relationship with a banks profitability. Harons (2004) study found that Investment account deposits had a positive relationship with all profitability measures and thus, confirmed Smirlocks hypothesis. Haron and Azmi (2004) attempted to investigate the strength of influence between both internal and external variables and profitability of Islamic banks in selected countries using timeseries techniques of cointegration and error-correction mechanism. They found a significant long-run relationship between profitability measures of Islamic banks and determining variables such as liquidity, deposit items, assets structure, inflation and money supply. They also found that Investment account deposits was the only variable which had a significant relationship with all three profitability ratios. For Current account deposits, a positive relationship was found with Banks portion of income as a percentage of total assets. The result indicated that a 1% increase in current account holdings increased the banks portion of income by 0.064%. Given that current account facility is a cost-free service, the more funds deposited into this account, the higher profits will be made available to Islamic banks. Interestingly, current account deposits had no significant relationship with Total income as a percentage of total assets implying that an increase in current accounts does not generate more income to the bank, but only functions as a cost saving measure. On other words, Islamic banks do not pay any rewards to their depositors. These results were in line with the findings of Haron (1996a, 2004). Savings deposits variable was found to have a significant positive relationship with Total income as a percentage of total assets. For every 1% rise in savings account, total income increased by 0.26%. This was in line with normal banking practices whereby Islamic bank could use the funds deposited in this account for productive purposes and thus, generating additional revenue for the bank. Increases in deposits size has a positive impact on Earnings per share (EPS), as a portion of depositors profits is minused as a fee for the benefit of the bank and its shareholders. (Shubber and Alzafri, 2008). Returns on Islamic deposits are though flexible in nature since returns are based on performance rather than contracted upfront as evident in all interest bearing deposits. Although the mudarabah rates (investment deposit rates) are quoted using the rates given in the previous months, they are not fixed beforehand and serve as an indicative rate of return on Mudarabah deposits (ROMD). The Mudarabah (investment deposits) contract works along profitâ€Å"loss sharing principles while fixed deposits of conventional banks are based on the contract of debt. As an equity product, a Mudarabah deposit offers no principal protection and legal claims against any form of returns. To make up for the risk exposure of the product, Mudarabah depositors are expected to be given higher retur ns relative to that of commercial banks fixed depositors who avoided risk. (Rosly and Zaini, 2008). Haron and Shanmugam (1995) in their study try to link the profit rates to Islamic banks deposits. Using Pearsons Correlation and First Order Autoregressive model, they found strong negative relationship between the two variables. Likewise, their finding showed a positive linear relationship between conventional and Islamic bank deposits. Haron and Ahmed (2000) argue that people who placed their deposits at saving and investment account facilities were guided by the profit motive. The utility maximization theory amongst the Muslim customers was further confirmed by the negative relationship between the rate of interest in conventional banks and the sum deposited in interest-free deposit facilities. Muslims should be guided by Islamic doctrines when making their economic decisions. Therefore, role of educating people regarding Islamic banking system should be played globally. It is indeed a challenging task. (Haron and Ahmed, 2000). Shubber and Alzafri, (2008) say that EPS (Earnings per share) improves as the level of deposits increases, as depositors were viewed as sharers in the profit and loss, rather than being entitled to a fixed interest rate. This supports that increasing deposits have a positive impact on EPS (Earnings per share). Increasing deposits, therefore, do not direct any increment in the cost of equity. In fact, equity holders benefited from larger deposits, as owners of the latter pay out management fees, which is deducted from the depositors share of the profits. Also, the market value of Islamic banks is independent of WACC. (Shubber and Alzafri,2008). Haron and Azmi (2004a) demonstrated that with the exception of fixed and investment deposits, any increase in rates of interest, deposits at conventional system will increase and deposits at Islamic system will decrease, and vice-versa. As for the fixed and investment deposits, ambiguous results were found. One possible explanation for this is that rates of profit for deposits at Islamic system are known at the end of the deposit period and not at the beginning as opposed to the conventional system. Any upward changes in interest rate of conventional system will have an adverse impact to the deposit levels in the Islamic system. Therefore, rates of profit of Islamic system must at any time be similar to those of the conventional system. Finally, religious dimension can be considered as an important element to attract more people to deposit their funds in the Islamic system. This could also be the reason why more and more conventional banks are starting to offer Islamic banking facili ties to their customers not only in Malaysia but also to other parts of the world. (Haron and Azmi, 2004a). Hasan and Bashir (2003) argue that the rising contest and continuous innovation to provide financial services, all contribute to a increasing interest in a detailed evaluation of Islamic banks. Depositors are interested in evaluating the performance of their banks since they are not given fixed returns and the nominal values of their deposits are not assured. In trying to make best use of the value of shareholders investment, Islamic banks are exposed to risks. Hence, analyzing the Islamic banks performance is important from economic and public policy perspectives. (Hasan and Bashir, 2003). Methodology This study uses univariate regression analysis to examine the relationship between deposits and profitability of Islamic banking industry in Pakistan. Univariate regression is a method of regression analysis that uses one explanatory variable to predict values of a single dependent variable. SPSS software is applied to obtain the univariate regression. In this study, three independent variables titled Fixed deposits, Savings Deposits and Current account deposits have been used. The dependent variable of profitability is measured by ROE which is the ratio of a banks net after-tax income divided by its total equity capital. The return on equity (ROE) is considered to be one of the profitability performance ratios (Tarawneh, 2006). It indicates how effectively the management of the bank is able to turn shareholders funds (i.e. equity) into net profit. ROE (Return on Equity) has been tested separately for the three independent deposit variables to avoid the issue of multicollinearity sin ce all the deposit variables are highly correlated to each other. This paper attempts to test three hypotheses. According to Becker (1995), hypothesis testing is the process of judging which of two contradictory statements is correct. Hypothesis 1: Investment Deposits increase the profitability of Islamic banks. Hypothesis 2: Saving Deposits increase the profitability of Islamic banks. Hypothesis 3: Current Account Deposits increase the profitability of Islamic banks. The data for this study is time series data taken from the quarterly editions of the Islamic banking bulletin? published by the State Bank of Pakistan. These bulletins publish the consolidated financial statement variables representing the entire Islamic banking industry of Pakistan including all the full fledge Islamic banks (Al Baraka Islamic bank, Bank Islami Pakistan limited, Dawood Islamic bank Limited, Dubai Islamic bank limited, Emirates Global Islamic bank Ltd and Meezan Bank Ltd.) as well as the Islamic branches of conventional banks (Askari Bank Limited, Bank Al Falah Ltd., Bank Al Habib, Faysal Bank, Habib Metropolitan bank, MCB Bank Ltd, National bank of Pakistan, Soneri Bank Ltd, Standard Chartered Bank, The Bank of Khyber, Royal bank of Scotland, United Bank Ltd). The sample period for this study is limited from 2007 to 2009 as most of the Islamic banks started operations from 2007 in Pakistan. Hence, the consolidated data of the eleven consecutive quarters has been use d in this study. The general equations of the three models are: Profitability = b0 + b1(ID)(1) Profitability = b0 + b1(SD)(2) Profitability = b0 + b1(CD)(3) Where, b0 = intercept (constant) Dependent variable: Profitability = ROE (Return on Equity) Independent variables: ID = Investment Deposits SD = Savings Deposits CD = Current Account Deposits Results The results of the regression analysis for model.1, 2 and 3 are shown in Tables 1, 2 and 3 respectively. All the three models were significant at the 5% level of significance. The value of the adjusted coefficient of determination (adjusted R2) for ROE in model.1 is 0.4 which demonstrates that 40% of the variability in total is explained by its linear association with Fixed deposits variable. As for model 2 and 3, the corresponding values of adjusted R2 are 0.399 and 0.377 respectively. A relatively small value of adjusted R2 does not necessarily mean that the model is in appropriate to measure the relationship between independent and dependent variables. (Haron, 2004). The value of adjusted R2 is usually influenced by a number of predictive variables relative to the sample size and it becomes smaller as we have fewer observations per predictor variable (Hair et al., 1995). To provide a rationale for the variance in R2 and adjusted R2 values, the Dublin-Walter test was conducted. The Dublin-Walter statistics values for all the three values were less than two which proves that the variance was due to negative autocorrelation in the sample observations. Also, the adequacy of a model for predicting is validated by the F-test. (Haron, 2004). As presented in Table 1, 2 and 3, all F-ratio values are statistically significant at 5% significance level for all profitability models. Hence, these results confirmed that the models applied were useful for measuring the relationship between deposits variable items and the profitability variable. Discussion The results supported all the three hypotheses that Investment, Savings and Current account deposits increase the profitability of Islamic banks. This result is in line with Haron (1996a, 2004) who founded evidence to suggest that all three sources of funds (current, savings and investment accounts) for Islamic banks are positively related to profitability. Hypothesis 1 of this study suggested that investment deposits increase the profitability of Islamic banks. The results show that the value of the adjusted coefficient of determination (adjusted R2) for ROE in model.1 is 0.4 which demonstrates that 40% of the variability in total is explained by its linear association with investment deposits variable. Hence, results support Hypothesis 1. Similarly, hypothesis 2 stated that savings deposits increase the profitability of Islamic banks. The results show that the value of the adjusted R2 for ROE in model.2 is 0.399 at 5% significance which shows that 39.9% of the variability in total is explained by its linear association with savings deposit variable. Hence, results also support Hypothesis 2. Finally, hypothesis 3 proposed that savings deposits increase the profitability of Islamic banks. The results show that the value of the adjusted R2 for ROE in model.3 is 0.377 which shows that 37.7% of the variability in total is explained by its linear association with savings deposit variable at 5% level of significance. Hence, results support Hypothesis 3 also. All these results were significant at a 5% level of significance. Referring to previous literature, the results are mixed. In the literature, most studies found that savings and investment deposits have an inverse relationship with profitability, while a positive relationship has been found for current account deposits. In this study, the current account deposit variable had significant positive relationship with profitability. This result is in line with the findings reported by Smirlock (1985), Haron (1996a, 2004) and Haron Azmi (2004). Since a current account service is considered a cost-free facility, it is expected that the more funds deposited into this account (current), the more Islamic banks will stand to profit. In the case of savings deposits, a positive relationship was found between these deposits and profitability. This result suggests that any increase in savings accounts will increase profits and this is in line with Haron (1996a) and Haron Azmi (2004) as Islamic banks can use these savings funds deposited in this account for productive purposes and therefore, generating additional revenue for the Islamic banks. The results on investment deposits in this study are not similar to most of the findings reported in commercial banking literature. For example, Hester and Zoellner (1966) and Heggested (1977) found that fixed deposit facilities had an inverse relationship with profitability. In contrast, Smirlock (1985), Haron (1996a, 2004), Haron and Azmi (2004) believed that an increasing amount in fixed deposits would have a positive relationship with a banks profitability. This study found that investment deposits had a positive relationship with all profitability measures and thus, confirmed Smirlocks, Harons and Azmis hypothesis. In light of the above findings, Islamic banking provides a better and ethical alternative that is not only Riba-free according to the rules of Shariah but also profitable to depositors and investors since all the deposit accounts are positively correlated to profitability. Since, Islamic banking provides three different interest-free deposit facilities to its depositors and investors to facilitate them according to their financial needs, people should invest in these deposit accounts in order to patronize the Islamic banking industry and to receive good returns in the form of hiba from these Islamic banks. In addition, Ghazali (2008) suggests that Islamic banking is indeed relevant to the current economic crisis. The global financial meltdown stemming from the US actually poses an opportunity for the Islamic banking system to demonstrate its distinctiveness. The financial meltdown revealed the desperate need for a system like Islamic finance, based on the principle of profit-sharing where both parties are subjected to probable losses and returns. It is a fair and just system. This is contrasting to the conventional system, where Islamic banks do not acquire or trade debt; rather they manage substantial assets which are tied to real economic activities.. This is really an opportunity for the Islamic financial community to reveal to the global market that the Islamic financial system is actually a robust and feasible alternative to the conventional interest-based system. Hence, people should support the Islamic banking industry worldwide since deposits are positively related to the profitability of Islamic banks. Hence, increased deposits would result in higher profitability of Islamic banks which in return would provide higher returns to its depositors. This would finally lead to implement a justified and ethical economic system which encourages a fair distribution of wealth and resources throughout the society. This study can be extended to include more time series and cross-sectional data of Islamic banks of other countries. The study may also be extended to cover other determinants of Islamic banking profitability. Islamic Banking Deposits and Profitability Relationship Islamic Banking Deposits and Profitability Relationship The purpose of this research study is to analyze the impact of Islamic Banking Deposits (Investment, Savings and Current accounts) on the profitability measure ROE of the Islamic banking industry in Paksitan. For this purpose, time series data of eleven quarters covering the period 2007 to 2009 is taken for the required variables from State Bank of Pakistans quarterly editions of the Islamic banking bulletin. The results showed that all the deposit variables had a significant positive relation with the profitability of Islamic banks. The aim is to contribute to the literature on deposit-profitability relationship of Islamic banks. Islamic banking is a banking activity based on Islamic principles, which do not allow the paying and receiving of interest (riba) and promotes profit sharing in the conduct of banking business. (Ghazali, 2008). According to the latest quarterly edition of State Bank of Pakistans Islamic Banking Bulletin?, the total Shariah-compliant assets worldwide have grown to about US$ 700 billion â€Å" with annual growth exceeding 10.0 percent during the past decade and are projected to grow to US$ 1.6 trillion by 2012. State Bank of Pakistans strategic plan for Islamic banking industry launched in 2008, aims to increase the size of the Islamic banking industry to 12.0 percent (of total banking assets) by 2012. Islamic financial institutions do not only play a vital role in resource mobilization, resource allocation and employment but are also actively involved in the course of implementing government monetary policy. Apart from offering nearly all traditional banking facilities, Islamic banks also assist domestic and international trades. Seeing the potential of the Islamic market, western conventional-based financial institutions such as Citibank, JP Morgan, Deutsche Bank, ABN Amro and American Express have introduced interest-free products to customers. Similarly, multinational corporations such as General Motors, IBM and Dewoo Corporation have already begun to use interest-free services.(Haron and Azmi, 2003). Studies that assess the influence of various factors that determine Islamic banks profitability are still at initial stage. Few attempts have up till now been made to empirically analyze the Islamic banks performance. In the Islamic banking literature, the work of Haron (1996a) was the first attempt to examine factors that contributed towards Islamic banks profitability. Most of the research used multiple regression analysis technique in measuring the relationship among the determining factors and profitability ratios. Extending the previous work in Islamic banks performance, this paper examines the strength of relationship between deposit variables and profitability of Islamic banks using univariate regression methodology. By studying the association between Islamic banksÃ… ¸ performance and the deposit variables, this paper contributes to the on-going discussion on the deposits and profitability relationship of Islamic banks. The paper is divided into seven sections. The literature review on determinants of Islamic bank performance is highlighted in Section 2. Section 3 examines the methodology used in analyzing the relationship between the deposits variables used in this study and the performance of Islamic banks. Section 4 presents the discussion and implication. The references are listed in section 5. The tables are listed in section 6 and figures in section 7. Literature Review The whole foundation of Islamic Finance is that the two sides of the equation (i.e. the fund-providers and the fund-users) work in agreement as partners, without depositors being assured of any return from those who use their money. In practice, Islamic banks draw approximately three-quarters of the capital from their depositors, and do not guarantee any precise level of return to these fund-providers. (Shubber and Alzafri,2008). Ghafoor (1995) states that all Islamic banks have three kinds of deposit accounts: current, savings and investment. Current or demand deposit accounts are almost the same as in all conventional banks. Deposit is assured. Savings deposit accounts function in different ways. In some banks, the depositors permit the banks to make use of their money but they attain a guarantee of being paid the complete amount back from the bank. Banks adopt a number of methods of inducing their customers to deposit with them, but profit is not promised. In others, savings accounts are treated as investment accounts but with less strict conditions as to withdrawals and minimum balance. Capital is not assured but the banks take care to invest capital from such accounts in fairly risk-free short-term projects. Therefore, lower profit rates are expected and that too only on a section of the average minimum balance on the ground that a high level of reserve funds need to be kept at all times to meet up withd rawal demands. Contrastingly, Investment deposits are accepted for a predetermined or indefinite period of time and the investors consent in advance to share the profit (or loss) in an agreed proportion with the bank. Capital is not assured. (Ghafoor, 1995). Some IFIs (Islamic Financial Institutions) classify deposits in terms of wadiah or amanah. Current accounts of IFIs are regarded as qard hasan or qard (alternatively, as wadiah/amanah). (Farooq, 2008). Qard al-Hasana is defined as deposits whose full repayment on demand is guaranteed by bank. (Ahmad, 1994). The deposits in the current account are regarded as if they are loans from the customers to the bank and therefore, bear no yield to the account holders.? (Al-Jarhi and Iqbal. 2001). Deposit accounts are neither a liability nor equity capital. They are a hybrid? source of capital, and must be acknowledged as such. Depositors are partners with the bank, but enjoy no ownership rights. (Shubber and Alzafri,2008). Sudin Haron (1996) mentions that the law allows the banks to accept two types of deposits, i.e., qard al-hasanah deposits and term investment deposits. The qard al-hasanah deposits includes current as well as savings accounts which vary in their operational rules. (Ahmad, 1994). If it is allowed that the borrower can pay extra money voluntarily, then treating deposits as qard-hasan allows the banks as the borrowers to pay extra money to the depositors (lenders). Unlike savings account services at conventional banks, where depositors are automatically rewarded upon appointment of their funds, returns to savings account holders are reliant on the Shariah (Islamic laws) principles which are practiced by Islamic banks when offering this service. When wadiah (trusteeship) or qard hassan (benevolent loan) are used, the returns are entirely at the discretion of the banks. (Sudin Haron, 1996). Nienhaus, (2004) argues that if the customers of Islamic banks desire a return on their funds, they should pay into investment accounts (also called participation accounts or PLS, profit and loss sharing accounts). Whereas, credit balances on these accounts are not considered deposits in the conventional sense. The returns on Islamic banks investment accounts are not fixed in advance; the customers participate by a certain proportion in the financial outcome of the utilization of their investment funds by the bank. These results could also result in a loss. In case of loss, the clients will have to bear a portion of the loss which would reduce the nominal value of the credit balances of their respective investment accounts. In such a situation, the clients cannot claim a full reimbursement of the money paid in. The full reimbursement, however, is constituent for a deposit in the strict sense. (Nienhaus, 2004). Rosly and Zaini, (2008) say that the public in general put their money in banks for either fulfilling transactional needs or for investment needs. To suffice the transactional objective, Islamic banks offer services such as wadiah yad dhamanah deposit, which facilitates safekeeping of their deposit money with guarantee services. In this product, depositors no longer deposit funds to receive a fixed income. Instead, they place their deposits for protection.`Wadiah yad dhamanah means safekeeping with guarantee. Wadiah yad dhamanah depositors permit the Islamic bank to invest their money in return for deposit safety that they got for free. Since the caretaker service is given without a fee, the Islamic bank holds no legal compulsion to pay depositors a predetermined return and may do so only on voluntary basis. In this way, the bank holds choice on profit distribution policy in the form of gift (hibah). The same is not correct for Islamic fixed deposits, frequently known as mudarabah in vestment deposits. In this partnership composition, no guarantee is given to capital protection and fixed income, as it runs under equity principle. It is a precarious product as the underlying contract is based on profitâ€Å"loss sharing system. Profits are shared only in case of performing investments, while capital may depreciate or even shrink if the investment ends in losses. (Rosly and Zaini, 2008). Haron and Azmi, (2004) discuss that similar to conventional banks, Islamic banks also rely on depositors money as a key source of fund. Bank Muamalat Malaysia Berhad for example, had total deposits amounting to 94 percent of total liabilities and shareholders equity at the end of December 2003. While in the case of Jordan Islamic Bank, Islamic Bank of Bangladesh, Bank Muamalat of Indonesia, and Bank Shariah Mandiri of Indonesia, the corresponding amounts were 94%, 86%, 76%, and 79%, respectively. These figures reveal the vast high total of the depositors money as a supply of finance for Islamic banks. Hence, it becomes indispensable for the management of Islamic banks to identify the factors that are most likely to convince customers decision making in depositing their capital with Islamic banks. (Haron and Azmi, 2004). With the exception of a study done by Metawa and Almossawi (1998) where religion was seen as a reason influencing customers choice to support Islamic banks in Bahrain, other studies have proven counter wise. The evidence from studies done in Sudan and Turkey, for example, revealed that religion was not the main motive for customers choosing Islamic banks (Erol and El-Bdour, 1989). Likewise, studies conducted in Malaysia and Singapore revealed both religion and profit as the explanation for people maintaining their association with Islamic banks (Haron et al., 1994; Gerrad and Cunningham, 1997). Since depositors are attracted by profits, it is vital for Islamic banks management to be aware of the fact that return rates on deposits persuade their customers decision to deposit. (Haron and Azmi, 2004). Relating to commercial banks deposit composition, Hester and Zoellner (1966) and Heggested (1977) found that time and savings deposits had a significant inverse correlation with profitability. Smirlocks (1985) findings demonstrated a significant positive relationship amid demand deposits and profits. In contrast, Fraser and Rose (1971) found that loan rate; time deposit rate and loan-to-deposit ratio had no outcome on profitability. Haron (1996a) found evidence to suggest that current, savings and investment accounts of Islamic banks are positively related to profitability. Fraser et al (1974) considered operating costs, deposit and loan structures as factors within the control of management and found that the factor which had the biggest control on bank performance was bank cost followed by banks deposit and loan composition. Heggested (1977) proved that banks heavily devoted to time and savings deposits earned considerably lower returns than banks which have higher reliance on demand deposits. Smirlock (1985) confirmed that demand deposits were a cheaper source of funds and had a positive impact on bank profits. In the literature, the majority of studies found that savings and time deposits have a negative relationship with profitability, while a positive relationship has been found for current account deposits. Haron (2004) found that nearly all deposit structure variables had no significant relationship with the profitability ratios. Deposits in current account, was the only variable which had a significant relationship with Banks portion of income as a percentage of total assets and Net profit before tax as a percentage of total assets. Each 1% increase in the current account holdings increased the banks income by 0.034% and profit before tax by 0.036%. This end result was in line with the findings reported by Smirlock (1985). Since a current account service is considered a cost-free facility, it is anticipated that the more funds deposited into this account, the more Islamic banks would stand to profit. Interestingly, no significant relationship was found between current account deposits and Total income as a percentage of total assets, which implied that an increase in current accounts does not generate more proceeds to the bank as a whole but only functions as a cost saving measure. That is, no returns are paid to these depositors. In the case of savings and investment accounts, even though their relationships with all profitability ratios were at an insignificant level, the signs of their regression coefficients warranted further clarification. No contradiction with the findings of conventional banking literature with regard to savings accounts was apparent. A negative relationship was found between Savings account deposits and the profitability measures. This result suggests that any increase in savings accounts will reduce profits and it corresponds to the findings in the current banking literature (see for example Hester and Zoellner, 1966; and Heggested, 1977). The results on Investment account deposits in Harons (2004) study are not similar to those findings reported in earlier researches. Hester and Zoellner (1966) and Heggested (1977), for example, found that fixed deposit facilities had an inverse relationship with profitability. Since some of the characteristics of investment deposits at Islamic banks are similar to the fixed deposit facilities of conventional banks, it is expected that more funds deposited into these accounts would result in less profit to the bank. In contrast, Smirlock (1985) believed that an increasing amount in fixed deposits would have a positive relationship with a banks profitability. Harons (2004) study found that Investment account deposits had a positive relationship with all profitability measures and thus, confirmed Smirlocks hypothesis. Haron and Azmi (2004) attempted to investigate the strength of influence between both internal and external variables and profitability of Islamic banks in selected countries using timeseries techniques of cointegration and error-correction mechanism. They found a significant long-run relationship between profitability measures of Islamic banks and determining variables such as liquidity, deposit items, assets structure, inflation and money supply. They also found that Investment account deposits was the only variable which had a significant relationship with all three profitability ratios. For Current account deposits, a positive relationship was found with Banks portion of income as a percentage of total assets. The result indicated that a 1% increase in current account holdings increased the banks portion of income by 0.064%. Given that current account facility is a cost-free service, the more funds deposited into this account, the higher profits will be made available to Islamic banks. Interestingly, current account deposits had no significant relationship with Total income as a percentage of total assets implying that an increase in current accounts does not generate more income to the bank, but only functions as a cost saving measure. On other words, Islamic banks do not pay any rewards to their depositors. These results were in line with the findings of Haron (1996a, 2004). Savings deposits variable was found to have a significant positive relationship with Total income as a percentage of total assets. For every 1% rise in savings account, total income increased by 0.26%. This was in line with normal banking practices whereby Islamic bank could use the funds deposited in this account for productive purposes and thus, generating additional revenue for the bank. Increases in deposits size has a positive impact on Earnings per share (EPS), as a portion of depositors profits is minused as a fee for the benefit of the bank and its shareholders. (Shubber and Alzafri, 2008). Returns on Islamic deposits are though flexible in nature since returns are based on performance rather than contracted upfront as evident in all interest bearing deposits. Although the mudarabah rates (investment deposit rates) are quoted using the rates given in the previous months, they are not fixed beforehand and serve as an indicative rate of return on Mudarabah deposits (ROMD). The Mudarabah (investment deposits) contract works along profitâ€Å"loss sharing principles while fixed deposits of conventional banks are based on the contract of debt. As an equity product, a Mudarabah deposit offers no principal protection and legal claims against any form of returns. To make up for the risk exposure of the product, Mudarabah depositors are expected to be given higher retur ns relative to that of commercial banks fixed depositors who avoided risk. (Rosly and Zaini, 2008). Haron and Shanmugam (1995) in their study try to link the profit rates to Islamic banks deposits. Using Pearsons Correlation and First Order Autoregressive model, they found strong negative relationship between the two variables. Likewise, their finding showed a positive linear relationship between conventional and Islamic bank deposits. Haron and Ahmed (2000) argue that people who placed their deposits at saving and investment account facilities were guided by the profit motive. The utility maximization theory amongst the Muslim customers was further confirmed by the negative relationship between the rate of interest in conventional banks and the sum deposited in interest-free deposit facilities. Muslims should be guided by Islamic doctrines when making their economic decisions. Therefore, role of educating people regarding Islamic banking system should be played globally. It is indeed a challenging task. (Haron and Ahmed, 2000). Shubber and Alzafri, (2008) say that EPS (Earnings per share) improves as the level of deposits increases, as depositors were viewed as sharers in the profit and loss, rather than being entitled to a fixed interest rate. This supports that increasing deposits have a positive impact on EPS (Earnings per share). Increasing deposits, therefore, do not direct any increment in the cost of equity. In fact, equity holders benefited from larger deposits, as owners of the latter pay out management fees, which is deducted from the depositors share of the profits. Also, the market value of Islamic banks is independent of WACC. (Shubber and Alzafri,2008). Haron and Azmi (2004a) demonstrated that with the exception of fixed and investment deposits, any increase in rates of interest, deposits at conventional system will increase and deposits at Islamic system will decrease, and vice-versa. As for the fixed and investment deposits, ambiguous results were found. One possible explanation for this is that rates of profit for deposits at Islamic system are known at the end of the deposit period and not at the beginning as opposed to the conventional system. Any upward changes in interest rate of conventional system will have an adverse impact to the deposit levels in the Islamic system. Therefore, rates of profit of Islamic system must at any time be similar to those of the conventional system. Finally, religious dimension can be considered as an important element to attract more people to deposit their funds in the Islamic system. This could also be the reason why more and more conventional banks are starting to offer Islamic banking facili ties to their customers not only in Malaysia but also to other parts of the world. (Haron and Azmi, 2004a). Hasan and Bashir (2003) argue that the rising contest and continuous innovation to provide financial services, all contribute to a increasing interest in a detailed evaluation of Islamic banks. Depositors are interested in evaluating the performance of their banks since they are not given fixed returns and the nominal values of their deposits are not assured. In trying to make best use of the value of shareholders investment, Islamic banks are exposed to risks. Hence, analyzing the Islamic banks performance is important from economic and public policy perspectives. (Hasan and Bashir, 2003). Methodology This study uses univariate regression analysis to examine the relationship between deposits and profitability of Islamic banking industry in Pakistan. Univariate regression is a method of regression analysis that uses one explanatory variable to predict values of a single dependent variable. SPSS software is applied to obtain the univariate regression. In this study, three independent variables titled Fixed deposits, Savings Deposits and Current account deposits have been used. The dependent variable of profitability is measured by ROE which is the ratio of a banks net after-tax income divided by its total equity capital. The return on equity (ROE) is considered to be one of the profitability performance ratios (Tarawneh, 2006). It indicates how effectively the management of the bank is able to turn shareholders funds (i.e. equity) into net profit. ROE (Return on Equity) has been tested separately for the three independent deposit variables to avoid the issue of multicollinearity sin ce all the deposit variables are highly correlated to each other. This paper attempts to test three hypotheses. According to Becker (1995), hypothesis testing is the process of judging which of two contradictory statements is correct. Hypothesis 1: Investment Deposits increase the profitability of Islamic banks. Hypothesis 2: Saving Deposits increase the profitability of Islamic banks. Hypothesis 3: Current Account Deposits increase the profitability of Islamic banks. The data for this study is time series data taken from the quarterly editions of the Islamic banking bulletin? published by the State Bank of Pakistan. These bulletins publish the consolidated financial statement variables representing the entire Islamic banking industry of Pakistan including all the full fledge Islamic banks (Al Baraka Islamic bank, Bank Islami Pakistan limited, Dawood Islamic bank Limited, Dubai Islamic bank limited, Emirates Global Islamic bank Ltd and Meezan Bank Ltd.) as well as the Islamic branches of conventional banks (Askari Bank Limited, Bank Al Falah Ltd., Bank Al Habib, Faysal Bank, Habib Metropolitan bank, MCB Bank Ltd, National bank of Pakistan, Soneri Bank Ltd, Standard Chartered Bank, The Bank of Khyber, Royal bank of Scotland, United Bank Ltd). The sample period for this study is limited from 2007 to 2009 as most of the Islamic banks started operations from 2007 in Pakistan. Hence, the consolidated data of the eleven consecutive quarters has been use d in this study. The general equations of the three models are: Profitability = b0 + b1(ID)(1) Profitability = b0 + b1(SD)(2) Profitability = b0 + b1(CD)(3) Where, b0 = intercept (constant) Dependent variable: Profitability = ROE (Return on Equity) Independent variables: ID = Investment Deposits SD = Savings Deposits CD = Current Account Deposits Results The results of the regression analysis for model.1, 2 and 3 are shown in Tables 1, 2 and 3 respectively. All the three models were significant at the 5% level of significance. The value of the adjusted coefficient of determination (adjusted R2) for ROE in model.1 is 0.4 which demonstrates that 40% of the variability in total is explained by its linear association with Fixed deposits variable. As for model 2 and 3, the corresponding values of adjusted R2 are 0.399 and 0.377 respectively. A relatively small value of adjusted R2 does not necessarily mean that the model is in appropriate to measure the relationship between independent and dependent variables. (Haron, 2004). The value of adjusted R2 is usually influenced by a number of predictive variables relative to the sample size and it becomes smaller as we have fewer observations per predictor variable (Hair et al., 1995). To provide a rationale for the variance in R2 and adjusted R2 values, the Dublin-Walter test was conducted. The Dublin-Walter statistics values for all the three values were less than two which proves that the variance was due to negative autocorrelation in the sample observations. Also, the adequacy of a model for predicting is validated by the F-test. (Haron, 2004). As presented in Table 1, 2 and 3, all F-ratio values are statistically significant at 5% significance level for all profitability models. Hence, these results confirmed that the models applied were useful for measuring the relationship between deposits variable items and the profitability variable. Discussion The results supported all the three hypotheses that Investment, Savings and Current account deposits increase the profitability of Islamic banks. This result is in line with Haron (1996a, 2004) who founded evidence to suggest that all three sources of funds (current, savings and investment accounts) for Islamic banks are positively related to profitability. Hypothesis 1 of this study suggested that investment deposits increase the profitability of Islamic banks. The results show that the value of the adjusted coefficient of determination (adjusted R2) for ROE in model.1 is 0.4 which demonstrates that 40% of the variability in total is explained by its linear association with investment deposits variable. Hence, results support Hypothesis 1. Similarly, hypothesis 2 stated that savings deposits increase the profitability of Islamic banks. The results show that the value of the adjusted R2 for ROE in model.2 is 0.399 at 5% significance which shows that 39.9% of the variability in total is explained by its linear association with savings deposit variable. Hence, results also support Hypothesis 2. Finally, hypothesis 3 proposed that savings deposits increase the profitability of Islamic banks. The results show that the value of the adjusted R2 for ROE in model.3 is 0.377 which shows that 37.7% of the variability in total is explained by its linear association with savings deposit variable at 5% level of significance. Hence, results support Hypothesis 3 also. All these results were significant at a 5% level of significance. Referring to previous literature, the results are mixed. In the literature, most studies found that savings and investment deposits have an inverse relationship with profitability, while a positive relationship has been found for current account deposits. In this study, the current account deposit variable had significant positive relationship with profitability. This result is in line with the findings reported by Smirlock (1985), Haron (1996a, 2004) and Haron Azmi (2004). Since a current account service is considered a cost-free facility, it is expected that the more funds deposited into this account (current), the more Islamic banks will stand to profit. In the case of savings deposits, a positive relationship was found between these deposits and profitability. This result suggests that any increase in savings accounts will increase profits and this is in line with Haron (1996a) and Haron Azmi (2004) as Islamic banks can use these savings funds deposited in this account for productive purposes and therefore, generating additional revenue for the Islamic banks. The results on investment deposits in this study are not similar to most of the findings reported in commercial banking literature. For example, Hester and Zoellner (1966) and Heggested (1977) found that fixed deposit facilities had an inverse relationship with profitability. In contrast, Smirlock (1985), Haron (1996a, 2004), Haron and Azmi (2004) believed that an increasing amount in fixed deposits would have a positive relationship with a banks profitability. This study found that investment deposits had a positive relationship with all profitability measures and thus, confirmed Smirlocks, Harons and Azmis hypothesis. In light of the above findings, Islamic banking provides a better and ethical alternative that is not only Riba-free according to the rules of Shariah but also profitable to depositors and investors since all the deposit accounts are positively correlated to profitability. Since, Islamic banking provides three different interest-free deposit facilities to its depositors and investors to facilitate them according to their financial needs, people should invest in these deposit accounts in order to patronize the Islamic banking industry and to receive good returns in the form of hiba from these Islamic banks. In addition, Ghazali (2008) suggests that Islamic banking is indeed relevant to the current economic crisis. The global financial meltdown stemming from the US actually poses an opportunity for the Islamic banking system to demonstrate its distinctiveness. The financial meltdown revealed the desperate need for a system like Islamic finance, based on the principle of profit-sharing where both parties are subjected to probable losses and returns. It is a fair and just system. This is contrasting to the conventional system, where Islamic banks do not acquire or trade debt; rather they manage substantial assets which are tied to real economic activities.. This is really an opportunity for the Islamic financial community to reveal to the global market that the Islamic financial system is actually a robust and feasible alternative to the conventional interest-based system. Hence, people should support the Islamic banking industry worldwide since deposits are positively related to the profitability of Islamic banks. Hence, increased deposits would result in higher profitability of Islamic banks which in return would provide higher returns to its depositors. This would finally lead to implement a justified and ethical economic system which encourages a fair distribution of wealth and resources throughout the society. This study can be extended to include more time series and cross-sectional data of Islamic banks of other countries. The study may also be extended to cover other determinants of Islamic banking profitability.

Alcohol And The Church :: essays research papers

Alcohol And The Church It seems to be that our main questions are, Should we use alcohol and what about those that abuse it? How should the Church deal with those that do drink or should we as a society deal with it? While there is nothing in the Bible that says drinking is a sin, but drunkeness is. I believe as a society we do have a problem with alcohol abuse. But in the same respect I do not feel that the church should judge those who do drink socially, regularly, or abusively. When the time comes everyone will be judged individually by God alone. I feel it is his decision solely to do what is best for all. The church may teach not to use alcohol, but to discriminate against those in the congregation (or even those that are not) that do is not a solution to the problem. I feel in order to get alcohol abuse under control we as a society need to teach our children the risks of using alcohol, not only in the home but in the schools as well. To reach the heart of the problem is to face the problem head on. As a social drinker myself (I put my self in this classification) I don't feel I have an alcohol problem just because I enjoy a drink now and then. I do not abuse it and would never put myself behind the wheel of a car to take the risk of taking someone else's life. You don't need to be drunk to cause an accident, it's been proven in many cases only a few drinks can impair someone's stability. If more thought of this there would be less tragedies on our highways. When it comes to food and there are people starving in the world, when we could help by not converting food grains into alcohol, this should be made more aware to our society. I'm not sure most people are aware of this. It is supposedly our main concern to feed the hungry and shelter the poor. If giving up something that only contributes to loneliness and destruction than ever, because there are more that abuse than those who don't, it seems to me to be a logical solution. I think the best we can hope for in our future and our children's is that we have to

Examining The Privileges Of Child Dreams English Literature Essay

Each and every kid has the privilege to dream. An stripling who merely possess nil else still can woolgather of a enjoyable and joyful life, a universe where there is merely peace, and a universe consisting of no wretchedness. That kid can woolgather of a universe where everyone is sympathetic, forgiving, and apprehension. However, when these optimistic dreams are demolished, and world is revealed, what is at that place for the hapless kid to make? When he is cognizant of all of the incorrect things go oning around him, what is he traveling to believe? In The Song of Kahunsha by Anosh Irani, one kid ‘s dreams are shattered when he has to confront the existent universe. His dreams consisted of him reuniting with his parents who had abandoned him at an orphanhood and of a perfect universe. This perfect universe consisted of no jobs, â€Å" no † was n't considered as a word, and everybody lived in peace and harmoniousness. Equally shortly as he embarked on the journey to happen his parents, all of his dreams were demolished. I perfectly loved this novel! I love Anosh Irani ‘s ( writer ) usage of descriptive linguistic communication as it illustrated crystal clear images in my caput. For case, all of the characters and the scene were described with maximal effectivity. The Mumbai slums in this novel brought back clear flash dorsums of my jaunt to India. I felt highly regretful for all of the unfortunate grownups and kids who reside at that place. Just believing about it after-hours gives me incubuss. The lone thing that I would knock is that this novel has a sulky gait in the beginning, similar in To Kill a Mockingbird by Harper Lee, but one time you get past this slow constituent, everything goes by in a zephyr and the plotline is one of the best out at that place. To stop off, I would urge this novel to all readers because of the great sum of world that is embedded into this alone novel and its one of a sort plotline. Artlessness and Experience is a really common subject in literature. Both artlessness and experience are exact antonyms and one can non perchance be without the other. This subject can be easy applied to an person. When an person is rather immature, he or she is really guiltless but as the person grows, he or she faces many jobs and challenges. From these jobs and challenges, the single additions experience. As you grow, both physically and mentally, you start losing your artlessness and the experience that you gain is what replaces the artlessness. When you are a kid, you seem to cry when you notice that something merely is n't right but when you ‘re mature, you understand that this is world and since you ‘ve seen this happen multiple times, it merely does n't convey a tear to your eyes. You can compare artlessness to brainstorming because you can brainstorm without any limitations. When you start to compose an essay, you have to be smart and cognize your boundaries. You have to be cognizant of many different things for illustration, punctuation, passage words, citations, etc. Dreams play an of import portion in our lives. In fact, you spend about 8-10 hours a twenty-four hours woolgathering. This subject is really similar to the subject of contending in what you believe in. Some people believe that they should follow their dreams because dreams come from the bosom. This does n't look like a simple undertaking, particularly if you ‘re standing entirely. For illustration, if you ‘ve woolgather a dream that you want to carry through but is really ambitious, it might take your whole life merely to do a little impact on some of the people. Apart from this, if you truly believe that your dream means something, you should travel and seek to carry through it without looking at any of the limitations and who knows, person else might hold the same dream as you. For the film constituent of my ISU, I have chosen Slumdog Millionaire as my film because it best displays the subject of Innocence V. Experience. The name of this film is pretty self-explanatory. In Slumdog Millionaire, the supporter ( Jamal Malik ) used to populate in the slums of Mumbai but now he is a contestant on Kaun Banega Karore Pati ( Who Wants to Be a Millionaire ) . He has had a big assortment of unusual experiences in the Mumbai slums and these experiences have helped him reply all of the inquiries on this show and go a millionaire ( 20,000,000 rupees in the Hindi version ) The vocal that best suits the subject of Innocence vs Experience is I Dreamed a Dream by Susan Boyle. In this vocal, a adult female recalls her loving a adult male who has now left her and their girl. She thought that their love would last everlastingly but did n't even last a fraction of that. Bing really guiltless, she had no thought that this was traveling to go on. Since all of this has happened, she will look at everything with a different position. Recommended by Ms. Mckay ( English teacher ) , I decided to pick the novel The Song of Kahunsha by Anosh Irani for my ISU. It is a 1 of a sort novel. This novel has three chief struggles. These struggles are: Man vs. Man, Man vs Himself and Man vs. Society. After reading this novel, I have distinguished two chief subjects: Innocence V Experience and Following Your Dreams. The basic plotline of this novel is about the supporter whose name is Chamdi. Chamdi has been abandoned at an orphanhood by his male parent. He escapes the orphanhood tardily one dark and attempts to happen his male parent but rapidly realizes that it is really hard to last Mumbai. Chamdi is the chief character and is the supporter in The Song of Kahunsha. He is really immature and inexperient. Physically, he is a really scraggy, unhealthy, and ill-fed kid, about as tegument and castanetss. Chamdi is both, a positive mind, and an dreamer. Without any ground, he was abandoned at birth at an orphanhood. Chamdi has a vision to reunite with his male parent one twenty-four hours. In add-on to this, Chamdi dreams of a topographic point called Kahunsha, a land with no hurting, no wretchedness, no unhappiness, a land where people are forgiving and where â€Å" no † is non considered as a word. Sumdi is Guddi ‘s brother and is more advanced in age in comparing to her. He is physically deformed ; he merely has one leg. Sumdi and Guddi are two kids that Chamdi meets on his quest to happen his male parent. These two siblings have been shacking on the streets of all time since their male parent had passed off. Sumdi is a twosome of old ages older than Chamdi, who is ten old ages old. Sumdi is really persevere and bull-headed but on the other manus, he is a really compassionate and blithe psyche. Guddi is Sumdi ‘s younger sister. She is about the same age as Chamdi, give or take a few months. When Guddi and Chamdi foremost meet, she is really ill-mannered to him, but as the narrative progresses, Guddi starts to open up and transforms into a more friendly psyche. During a hazardous burglary, Guddi is earnestly injured, Chamdi merely knows one individual who can salvage Guddi ‘s life and hence, he obeyed every bid of Anand Bhai. For illustration, he threw a bomb that detonated inside a Muslim household ‘s house. Bing taken attention by Anand Bhai ‘s female parent, Guddi is all right at the completion of the novel. Anand Bhai, who is the adversary in this novel, is a heartless, inhuman and unmerciful character. The mendicants of cardinal Mumbai all work under Anand Bhai. They merely receive a fraction of their net incomes and the remainder of the money goes to- you guessed it- Anand Bhai. He intentionally has chopped off the custodies, weaponries, and even legs of his mendicants merely to do them more profitable. A adult male named Dabba is the perfect illustration of this. Dabba has all four of his limbs cut off so he is more pitied. All he can make is descry on the people in one country. He is called Dabba because Dabba in Hindi refers to package and he surely looks like a box because he does n't hold any limbs. After Guddi being earnestly injured, Chamdi knows that Anand Bhai is the lone individual who can salvage her. Therefore, he lies to Anand Bhai. Anand Bhai believes him and label along. After, he starts doubting Chamdi and subsequently, he finds out that Chamdi is lying. As a consequence, Anand Bhai is about to cut Chamdi ‘s lingua right off. Chamdi ‘s lingua is spared when he says that he will make anything for Anand Bhai. As a consequence, Chamdi has to throw a bomb at Muslim ‘s abode. To reason, Anand Bhai is the adversary in this novel. This struggle occurs in literature when a character develops an internal battle between his/her ideas and thoughts. In The Song of Kahunsha, Chamdi experiences and internal struggle. As he continues to maturate throughout the novel, Chamdi begins to recognize that this is world and his dreams were impractical and unrealistic. This is a struggle that Chamdi starts with himself and will go on on if he does non accept world. The existent inquiry is will Chamdi go on on his journey? or merely give up and accept that this is world. This struggle occurs in literature when a character has an statement or dissension with another character. In the Song of Kahunsha, Chamdi ‘s dream is non merely to reunite with his parents, but it is to populate in a consonant and peaceable universe. Man vs. Man is the dominant struggle in this novel because there are many people who act as barriers and prevent Chamdi ‘s dreams into going true. An example of this is Anand Bhai. Anand Bhai is a barrier and is the chief ground why Chamdi ‘s dreams can non be fulfilled. Anand Bhai has found out that approximately Chamdi Chamdi is now in his fierce clasp. For this ground, Chamdi can non go on on his journey in happening his parents. With people like Anand Bhai, the universe can non of all time be a peaceable topographic point. This struggle occurs in literature when a character disagrees with social values, beliefs and Torahs. This struggle is reasonably much the same as Man vs. Man but due to the fact that it stood out, it deserved to be in its ain class. In The Song of Kahunsha, Chamdi begs for money. Some people are really ill-mannered and they swear and spit at him, while others are generous and they give him some money. It is if all of society is against Chamdi and hence, he can non carry through his dream for a peaceable universe because of all of the offenders. The Song of Kahunsha takes topographic point in the orphanhood, the streets and slums of Mumbai, India. All of the chief characters, such as Chamdi, Sumdi, and Guddi live and seek to last on the streets of Mumbai. The clip when this stroy took topographic point is in the early 1990 ‘s. In fact, it takes topographic point in 1993. The narrative begins in the orphanhood, when Chamdi is merely an guiltless male child. Later, Chamdi escapes from the orphanhood and the remainder of the narrative takes topographic point in the streets and mopess of Mumbai. The narrative ‘s flood tide takes topographic point at Anand Bhai ‘s adda ( station ) . Overall, this narrative does non take topographic point outside of Mumbai. In my sentiment, the mood/atmosphere of the Song of Kahunsha is hopelessness. This is the temper of the narrative because of the unchanging letdown that Chamdi has to confront throughout this novel. An example of this is when Chamdi gets rejected by many people when he is out imploring for money. Another illustration of this is when Chamdi gets falsely accused of stealing from their stores. Unfortunate events like the aforesaid 1s have caused Chamdi to lose hope. In the expounding, a male child by the name of Chamdi is introduced. The narrative revolves around Chamdi, who is the chief character and the supporter. Chamdi has been abandoned by his parents at a little orphanhood in Mumbai, India. At the age of 10, Chamdi still resides in the really same orphanhood because he has nowhere to travel. His is still really guiltless and due to the fact that he has ne'er trespassed the walls of the orphanhood, he believes that Mumbai is an ideal metropolis, a metropolis of no saddness. Chamdi ever believes that his parents will come for him. Mrs. Sadiq, the orphanhood counselor, tells Chamdi narratives about the last clip she saw Chamdi ‘s male parent when he was running off from the orphanhood. At the orphanhood, Chamdi learns how to read and compose. The Hindu-Muslim public violences begin and Mrs. Sadiq tells the kids about the unsettled history between the Hindus and Muslims. This is when Chamdi dreams of a metropolis called Kahunsha ; a metr opolis of no unhappiness, a metropolis where there is peace and harmoniousness, a metropolis where the word â€Å" no † is non considered as a word. The trigger incident is when Mrs. Sadiq informs the kids that the orphanhood has to shut because of safety grounds ; the orphanhood is a really old edifice. Mrs. Sadiq tells the kids indirectly that they might hold to shack on the streets. This is when Chamdi has a strong impulse to happen his parents. During one dark, Chamdi escapes from the orphanhood because cipher notices at dark, non even Mrs. sadiq. The lifting action consists of Chamdi run intoing two siblings named Sumdi and Guddi. Like Chamdi, they excessively live on the streets. Guddi is the same age as Chamdi, while Sumdi is a few old ages older than Chamdi. They all become really close friends. This is when Chamdi faces world ; no one gives him any money, no one employs him, and all of the metropolis ‘s dwellers are cold blooded. This is nil compared to what Chamdi had dreamt of. Even though his dreams are shattered, Chamdi still does non give up in his pursuit to happen his parents. He tries to gain money the authoritative way- beggary. this is when he learns about a individual named Anand bhai. All of the vicinity mendicants work under Anand Bhai, who is a inhuman, unforgiving person who likes to see people enduring. Chamdi besides learns from Guddi that Anand bhai intentionally deforms people so that they can go more profitable mendicants. Chamdi besides watches a vicinity male child ‘s ear get cut away because he was n't following the codification of behavior. Chamdi, Guddi, and Sumdi draw to a decision that they will rob from Lord Ganesha ‘s temple and will take the following train, taking all of the money. Since Sumdi has one proper leg, he can non run. Therefore, Chamdi must be the 1 who commits this offense because of his lightning fast velocity. The flood tide of the narrative consists of Sumdi plotting out the whole robbery. The robbery twenty-four hours comes and Chamdi covers himself in oil so he can easy steal through the metal bars of the temple. Guddi and Sumdi distract all of the visitants. Nothing goes every bit planned ; there is a immense detonation in the temple and Sumdi dies on the topographic point while Guddi is badly injured. Chamdi begs Anand bhai to salvage Guddi because he is the lone individual that Chamdi knows who can make such a thing. In the falling action, Chamdi lies to Anand Bhai about a jewelry maker who ever leaves his store systematically during a specific portion of the twenty-four hours. He merely tells Anand Bhai after Anand Bhai agrees that he ‘ll Guddi. Guddi is put under Anand Bhai ‘s female parent. Anand Bhai finds out that Chamdi was lying wholly along. When Anand bhai was about to cut off Chamdi ‘s lingua, chamdi begs for forgiveness. Anand Bhai forgives Chamdi but merely less than one circumstance, Chamdi has to bomb a Muslim ‘s house. Chamdi does non desire to make it but he has no other option. Chamdi throws the bomb and makes a tally for his life. As a wages, anand bhai gives him fifty rupees which Chamdi spends on nutrient for Guddi. Now that chamdi has become an experient individual, he realises that his dreams were rather idealistic. The fresh ends off with Chamdi and Guddi gazing into the skyline. In The Song of Kahunsha, Innocence V. Experience has been displayed efficaciously and is the dominant subject. Chamdi starts off as an guiltless stripling in an orphanhood. He had no interactions with the outside environment, doing him highly guiltless. One dark, while urgently desiring to reunite with his parents, Chamdi escapes from the orphanhood, non cognizing the possible dangers skulking around him. He faced many rough times ; he faced world. For illustration, no employer would engage him as an employee, and no 1 would give Chamdi any money. Chamdi learned everything the difficult manner. From these escapades, Chamdi has grown into an experient adult male both physically and mentally. In The Song of Kahunsha, Following Your Dreams is besides considered a major subject. Chamdi owns nil but he still dreams that one twenty-four hours, he ‘ll populate in a perfect, harmonized and peaceable universe. These dreams were conducted when Chamdi was really immature, inexperient, and when he had no interactions with the outside universe. When Chamdi escapes the orphanhood, all of his dreams are shattered to pieces. With people like Anand Bhai, Chamdi ‘s dream can ne'er come true. Chamdi has to understand that this is world and there are people who say no, there are ill-mannered people, and there are public violences. From these awful experiences, Chamdi understands that his dreams were rather idealistic and he has to bury them and travel frontward. The narrative point of position in the Song of Kahunsha is Limited Omniscient in present tense. The writer uses a alone point of position. The reader merely knows about the ideas and feelings for merely one individual. This individual is the chief character and is besides the supporter. The narrative is told from Chamdi ‘s eyes. Here are a few illustrations of this: â€Å" Chamdi runs his custodies across his ribs, He tries to force his ribs in, but it is of no usage † ( Chapter 1, Page 6 ) â€Å" He stares at the H2O in the well. It is highly still and he wonders if he should leap in † ( Chapter 2, Page 26 ) â€Å" The Sun has come out and Chamdi stares at Amma ‘s scalp. The parts where hair has fallen out, or has been pulled out, are pink † ( Chapter 5, Page 94 ) This vocal is about a adult female who recalls her love for a adult male. She thought that their love would last for infinity but it did n't even last a fraction of what she had thought. She realizes how the adult male she one time loved is now merely a bantam portion of her yesteryear. I dreamed that love would ne'er decease. I dreamed that God would be forgiving. Then I was immature and fearless and all dreams were made and wasted. These lines briefly depict the adult female ‘s dreams. In her dreams, love ne'er dies and God is forgiving. Subsequently, she states that she when she was immature, she was fearless. This is because when you are immature, you merely have no thought of all of the possible dangers skulking around you. You merely do n't hold any of life ‘s experiences on your side. In the last line, she states that all of her dreams were made and wasted.. To me, this is likely the most of import line in this vocal because when you dream, you have no boundaries. This adult female had no boundaries in her dream and she applied the same dream to existent life, being unaware of the possible dangers. She applied it and she suffered ; her dream was shattered to pieces. But he was gone when fall came and I still dream that he ‘ll come to me. These two lines province the rough truth ; the adult female ‘s love left her all entirely but the hapless adult female still believes that he will certainly come back one twenty-four hours. The 2nd line provinces that you can maintain dreaming, even though it might non come true, everyone still has the power to dream. I had a dream my life would be, so different from the snake pit Iaa‚ ¬a„?m life, and now life has killed the dream I dreamed The last poetry is contrasting the adult female ‘s existent life to how she had dreamt it to be. She has described her life as snake pit and her dream was the entire antonym of what she is right now. Her life is what she is populating so it has killed her glorious dream. It is cardinal for us to woolgather, otherwise we ‘ll ne'er be able to accomplish or carry through anything in life. We must besides be ready for alteration, no affair how tragic it may be. The message of this vocal is that there are dreams that merely can non be and we should merely allow them travel. The subject of this vocal is Innocence vs Experience. The adult female was really guiltless because this was her really first love and relationship. She walked off from it as an experient individual in love and relationships. She now has realized that this is world and from this twenty-four hours on, she will look at relationships in a wholly different position. Associating the subject of this vocal to the novel was a challenge but with some job work outing accomplishments, nil is impossible! At the beginning of this vocal, the adult female describes herself as a really guiltless lady. Similar to the novel, Chamdi is a really guiltless psyche and he has hardly any experience with his milieus. In the in-between poetries of the vocal, the adult female describes all of the events that have happened to her. In the lifting action of the novel, Chamdi is seeking to last the streets of Mumbai. At the terminal of the vocal, the adult female compares the incident to a incubus and she develops into an experient adult female who will look at things in a wholly different manner. In the terminal of this novel, Chamdi additions experience from everything that was thrown at him in the lifting action of this novel. Overall, both characters start off inexperienced person and their experiences replace their artlessness at the terminal. Associating the vocal to existent life, you truly do n't cognize what life is traveling to throw at you, whether it is similar to the vocal ( adult female losing her love ) , or similar to the novel ( lasting rough conditions ) . Whatever it is, you have to be prepared. From mundane obstructions, you will get down to replace your artlessness with experience. Jamal Malik is the chief character and is the supporter. He and his older brother Salim live in the Juhu Slums of Mumbai, India. Their female parent passes off and their male parent is n't in the film ( likely, he excessively has passed off ) . Jamal and Salim flight when a greedy adult male named Maman makes an effort to flim-flam them into going mendicants. However, this action has a immense effect ; Jamal gets separated from the love of his life, Latika. Throughout the whole film, Jamal ‘s aim is to happen Latika, his fate. When he was a kid, he was ill-fed but the embonpoint visual aspect of his face, his actions and duologue made him an highly cunning male child. Jamal Malik is a contestant on the Indian version of Who Wants to Be a Millionaire. He has had many unusual yesteryear experiences, runing from life in the Juhu slums, to giving false Tourss at the Taj Mahal, are all hints that help him reply all of the inquiries in Who Wants to Be a Millionaire. His aim for being on the game show is non for all of the money ; it is to reunite with his lost love, Latika. Salim Malik is Jamal ‘s senior brother. He is slyer in comparing to Jamal. He is really cocky and likes things done his way- it ‘s merely who he is. Due to the fact that their parents have passed off, Salim is the 1 who ever takes charge. Latika is the miss of Jamal ‘s dreams. As a kid, Latika was really fun loving and carefree. The older she became, she became more serious and more mature. When Jamal and Salim flight on the train, Latika gets captured by Maman, who wanted to utilize Latika to do money, fundamentally for his ain good. For illustration, he makes her into a cocotte. Latika and Jamal reunite after a twosome of long old ages. Somehow, they get separated once more and Jamal becomes a contestant on Who Wants to Be a Millionaire. After Latika sees him on telecasting, with the aid of Salim, she escapes once more and for the 3rd clip, she and Jamal are reunited. Maman is the vicinity mobster in Slumdog Millionaire. He is really cagey and gets younger kids to implore for him and receives about all of their net incomes. Jamal and Salim have fled on the train because they found out the Maman was taking out guiltless kids ‘s eyes with spoons so they could go more profitable. Prem Kumar is the host of Who Wants to Be a Millionaire ( Indian version ) . He suspects Jamal of rip offing. During a commercial interruption, when in the washroom, Prem tells Jamal the incorrect reply to the inquiry. Jamal does non take his reply and sticks with his ain reply, and he gets it correct. This is when Prem calls the constabulary. Sergeant Srinivas is the inspector who interrogates Jamal. From his physical visual aspect, he seems really tough and intimidating. After oppugning Jamal for the bulk of the film, Sergeant Srinivas draws to a decision that Jamal is surely non rip offing and is an guiltless psyche. After watching Slumdog Millionaire, I have drawn to a decision that the chief struggle in this film is Man vs. Man. From the beginning, Jamal ‘s dream and end is to reunite with Latika, his true love. Man vs. Man is the dominant struggle because there are many adversaries in this novel who try to halt Jamal from making his end. Maman is merely one illustration, Jamal and Salim made it safely onto the train but Latika was captured by Maman ‘s work forces. Therefore, Latika was segregated from Jamal. After long old ages of seperation, Jamal and Latika reunite. Latika gets separated from Jamal once more when she is forced to day of the month a in-between aged rich adult male and as a consequence, she is forced to travel off. Due to this incident, Latika gets isolated from Jamal. Jamal eventually finds the perfect solution as he becomes a contestant on Who Wants to Be a Millionaire. Therefore, Latika knows where his present location is and they reunite one more clip. In the twelvemonth of 2006, in Mumbai, Jamal Malik who an 18 twelvemonth old contestant on Kaun Banega Karore Pati ( Who Wants to Be a Millionaire ) , is one inquiry off from the expansive award, one inquiry off from winning one million dollars. Just before the expansive award inquiry, he gets interrogated by the constabulary. The constabulary have detained him because they suspect that he has been rip offing wholly along ( you would besides believe that because how could a â€Å" slumdog † perchance know all of the replies ) Jamal describes, through flashbacks the big assortment of unusual incidents that his life has provided him the replies to all of the inquiries with. All of these flashbacks tell the buttocks the scene narratives of the three chief characters, Jamal, Salim, and Latika. The narrative begins when Jamal is about five old ages old. Jamal receives an autograph of Amitabh Bachan ( celebrated Bollywood histrion ) . His brother, Sanchez, so sells the autograph to do some speedy money. Merely when this happens, their female parent dies during the Bombay public violences. Soon after, Jamal and Salim meet Latika, a miss from their slum. Jamal readily accepts Latika as a friend but Salim does n't. The three kids are so found and captured by Maman, who is a mobster and is a portion of their slum, Maman fast ones and trains the kids of the slums into going mendicants. One dark Jamal, Salim, and Latika in secret find out that Maman is blinding kids ( taking their eyes out with spoons, it`s really gross outing ) . He`s blinding them so ordinary people will experience really regretful for them and give them more money. The three kids believe that it`s non safe to implore under Maman, so they take the train and flee. Jamal and Salim make it safely onto the train but unluckily, Latika doesn`t and she is recaptured by Maman`s crew. During the following few old ages, Jamal and Salim make a batch of money going in secret on top of trains, by in secret picking pockets, selling stolen goods, rinsing dishes, by being bogus circuit ushers at the Taj Mahal, and stealing guiltless people`s places. After they have made a batch of money, Jamal and Salim both go travel back to Mumbai in their quest to happen Latika. They discover from one of Maman`s friends that Latika has been raised to go a cocotte and she is Maman`s most valuable slave. The two brothers discover her location, happen her and shoot Maman, killing him. Salim so has an matter with Latika and Tells Jamal to acquire lost. After many long old ages, Jamal is working as a tea male child at an Indian call Centre. In his trim clip, Jamal searches the centre`s database for Salim and Latika. He successfully finds his brother, Salim, but fails happening Latika. Salim isn`t regretful for his past actions but merely apologizes for them at gunpoint. Jamal so reunites with Latika. Moments subsequently, Latika gets kidnapped by Javed`s pack ( Maman`s rival pack ) . As a consequence, Jamal loses any contact with Latika. Javed and Latika move off from Mumbai. Jamal tries to reunite with her by being a contestant on Kaun Banega Karore Pati ( Who Wants to Be a Millionaire ) . Jamal makes it to the concluding inquiry, and becomes the top narrative in all of India. For the 2nd last inquiry, Jamal uses his 2nd last line of life. Prem Kumar ( show host ) intentionally gives him the incorrect reply during the interruption. Jamal still gets the inquiry right and so the constabulary flatboat in, surmising that he`s cheating. In the question room, the inspector believes that Jamal is true and kindly allows him to return to the show. Salim on the other manus, helps Latika flight and commits suicide, along with killing Javed. For the concluding inquiry, Jamal uses his concluding line of life and calls his brother. Latika succeeds in replying the phone merely before Jamal was about to hang up. With fortune, Jamal gets the inquiry right and wins 20,000,000 rupees. The film ends by demoing Latika and Jamal caressing, as the film fades out to black. The subject of Innocence V. Experience is displayed absolutely in the film Slumdog Millionaire. Changes like this occur over clip with many interactions with the outside environment. The subject was foremost introduced when Jamal is on Who Wants to Be a Millionaire, when he is one inquiry off from one million dollars. This is connoting that Jamal is n't guiltless and that throughout his life, he ‘s had a big assortment of escapades and these experiences have helped him reply all of the inquiries taking up to the concluding inquiry. The novel has many flashbacks, one for each of the inquiries that Jamal has answered. With these unusual escapades, Jamal lost all of his artlessness and became an experient adult male. For illustration, when Jamal was a bogus circuit usher at the Taj Mahal, he recieved an American hundred dollar measure from one of the tourers as a tip. Coincidentally, there was a inquiry on the game show about the American hundred dollar measure. ( Whose face is on the American hundred dollar measure — Benjamin Franklin ) . This relates to the novel The Song of Kahunsha absolutely because in the beginning of the novel, Chamdi, the chief character and the supporter, starts off really guiltless. Through his many existent life experiences, Chamdi grows both physically and mentally into an experient adult male. The same goes for the film, from his first flashback, Jamal is really guiltless because he had no interactions with the outside universe. In his last flashback, Jamal has gone through a big assortment of escapades which have transformed him into an experient adult male. You can detect this alteration from his actions and from what he says. Overall, both Jamal and Chamdi start off inexperienced person and through their existent life interactions, they evolve into experient work forces. Anosh Irani is a novelist and dramatist who was born in the twelvemonth of 1974. He was both born and raised in the metropolis of Mumbai, India. He subsequently moved to Vancouver and he ne'er looked back. He besides received the Bachelor ‘s Degree in Creative authorship as he graduated from the University of British Columbia. Even as a kid, Anosh had a great involvement in authorship and he would pass most of his free clip composing originative pieces. The Song of Kahunsha is really Anosh ‘s 2nd novel. His first novel was The Cripple and His Talismans and his 3rd novel was Dahanu Road. Together, his three books have won more than 10 awards while the Song of Kahunsha has won four awards all by itself.