Competition in the banking industry

Competition in the banking industry The banking system of a country plays a vital role in social welfare of the people in the country and of people of the world in general. It offers services to enterprises and consumers to undertake their business activities and to easily perform their day-to-day transactions. It is necessary to ensure an efficient functioning of the banking system; otherwise, a dull and bogus banking system brings about an ultimate threat of potential for financial instability. That is the reason why the competition in financial sector is of much importance. The importance is for many reasons; i.e. it relates to the efficiency, quality and innovation of the production of financial services. Most importantly, it helps in taking careful decisions in policy making for banks (Claessens and Laevens, 2003). In recent years, a lot of research work has been carried out, investigating the nature of competition in the banking industry along with the degree of competition, factors affecting the competition and the effects of competition on other market factors on micro level as well as on macro economic level. An explanation for the vast amount of studies on this topic is that competition can not be measured directly due to the lack of detailed information on prices and costs of the various banking products (Bikker et al., 2007). This topic has also gained popularity among bankers, economists and policy makers because of globalisation, liberalization of financial markets and banking harmonization all over the world, especially in the European Union. Since early 90s, there are a lot of regulatory changes observed in the banking industry in order to achieve the establishment of a single, competitive market in the financial sector of Europe. It was initially triggered with the implementation of the Second Banking Coordination Directive defining conditions for Single Banking License. As a consequence, entry barriers have been removed substantially for the new entrants increasing competition, coupled with a significant consolidation process. The intuition behind this was Market Contestability; a market is contestable if there are no barriers to entry, exit is absolutely costless and the prices are highly elastic to demands for industry output. The key idea is that a firm may be compelled to be more competitive and efficient by the prospect of new entrants (Allen and Engert, 2007). Furthermore, costless exit means that if a firm enters into a new market and then decides to withdraw, it is required to recover sunk entry costs. These features insure that even if a market has a small number of active firms, it is still effectively contestable and competitive (Nathan A. and Neave E., 1989). Moreover, the pro-competitive deregulation process has increased the level of competition (Cetorelli, 2004), particularly in non-traditional and non-interest bearing areas of banking activity (Goddard et al. 2001). Trivieri F. (2005) documents that in the course of the 1990s, the Italian banking system underwent profound changes at normative and institutional levels, which led among other things to a significant relaxation of the entry barriers, to the liberalisation of bank branching, to the redefinition of ownership structure and to a large number of mergers and acquisitions. The effects of these transformations and, in particular, of those linked to the process of consolidation have been studied by many authors (see, among others: Resti, 1997; Angelini and Cetorelli, 2000; Messori, 2001; Sapienza, 2002; Focarelli et al., 2002; Focarelli and Panetta, 2003). According to European Central Bank 1999, 29 percent banks had been merged or shrunk between 1985 and 1997. In Italian banking industry, the Second Banking Directive was implemented in 1993, followed by a 20 percent reduction in the number of banks as a result of consolidation. It is observed that competition has been increased in recent years in European banking markets which is also generally true for Italy. Angelini and Cetorelli (2000) cite that a rise in the competition is easily found in European banking markets during recent years. Danthine, Giavazzi, Vives and von Thadden (1999) report a somewhat generalized decrease in banks net interest margins across Europe during the 1990s. Consistent with the European evidence, a declining trend in bank margins is also observed across different markets in Italy. This paper focuses only on the banking industry of Italy and analyzes the evaluation of competitive conditions, nature and the degree of competition in the Italian banking industry using firm-level balance sheet data. In this paper, we explore more thoroughly the competitive nature and degree of competition in the Italian banking industry by adopting a methodology developed in empirical industrial organization and used extensively in banking. Further more, we will compare our results with previous results to find out that whether the degree of competition has been increased or it has been as same as it was in the past. The setup of the remainder of this paper is as follows. Section 2 contains some important information about structure and features of a competitive banking industry which helps in understanding the competition more thoroughly. Next Section 3 introduces the original Panzar-Rosse model along with the previous studies in the field. Section 4 gives a brief explanation of the general Panzar and Rosse model. This section also shows the interpretation of the H-statistic along with the description of the testing hypothesis. Following Section 5 deals with the empirical model used in this study including long-run equilibrium test. This section also contains the banks data used for the empirical illustration for our theoretical findings. Finally in the last Section 6 empirical results and conclusion is discussed. OPTIMAL COMPETITIVE STRUCTURE OF THE BANKING SYSTEM According to Northcott C. (2004), competition improves efficiency and growth in the banking sector but market power or concentration is necessary for stability in the industry. Moreover, competitive environment promotes productive and allocative efficiency leading towards economies of scale while market power improves credit availability, stability, quality of banks loan portfolios, screening of loans and monitoring them. As a result, market power should not be eliminated, but rather used to facilitate an environment that promotes competitive behaviour. FEATURES OF A COMPETITIVE BANKING INDUSTRY Concentration weakens competition by fostering collusive behaviour among firms. Increased market concentration was found to be associated with higher prices and greater than normal profits (Bain, 1951). Smirlock (1985) and Evanoff and Fortier (1988) argue that higher profits in concentrated markets could be the result of greater productive efficiency. Berger (1995) finds some evidence that the efficiency hypothesis holds in US banking. In Europe, on the other hand, structural factors appeared to be more important and the SCP hypothesis seemed to hold (Goddard et al., 2001). If a well-developed financial system is provided then contestability improves with new entrants. Contestability is not necessarily related to concentration or the number of banks. Concentration and competition can exist together because of the presence of asymmetric information and branches and the effect and use of new technologies. (Northcott C, 2004) LITERATURE REVIEW AND THEORETICAL ISSUES: According to Bikker and Haaf (2000), initially the economic literature on the issue of competition in the industrial sector can be divided into two main categories; structural approach and non-structural approach. Structural approach can be further divided into two main paradigms. First type of structural approach is Structure-Conduct-Performance (SCP) paradigm, which tells us that the degree of competition is determined by the structural characteristics of the market, such as, number of firms, size of the firms, etc. The SCP was developed in the early 1950s by Mason (1939) and Bain (1951). Bain (1951) constructs the market power hypothesis that collusive behaviour is initiated by high concentration which results in large profits for firms. Later, Stigler (1964) and Demsetz propose efficiency hypothesis in contrast of marker power hypothesis stating that the efficiency of bigger firms may be the reason for high concentration instead of collusive behaviour of firms, while during 1980s, Baumol, Panzar and Willig (1983) build contestability hypothesis. Their hypothesis states that if entry and exit barriers are relaxed then competition may be prevailed (Mkrtchyan A. 2005). Second approach is Efficient-Structure-Hypothesis (ESH), which states that greater concentration in the industry not only increases the level of efficiency in the sector but also increases the degree of competition in that sector. Non-structural approach is based on describing the nature of competition in the context of the studies of New Economic Industrial Organization (NIEO). It suggests non-structural models to analyse the competition in markets which do not rely on the markets structure. Particularly, Klein (1971), Baumol, Panzar, and Willig [1982] provide a theory that shows that market competitiveness can be inferred irrespective of the structure of the market. NIEO studies include Iwata Model (1974), Brasnahan Model (1982), Rosse and Panzar (1977), Panzar and Rosse (1982), Panzar and Rosse Model (1987), etc. Non-structural method or firms input-output cost studies have gained more popularity than the structural approach among academics, researchers, analysts and policy makers. Particularly Panzar and Rosse model (1987) is the most widely used and is very popular model for competition. Duncan (2003) mentions that the Panzar and Rosse (P-R) model provides a comprehensive and simple method to calculate the competition. It does not require intensive data as compared to other models and has been firmly related to theoretical side. The information required for this model is easily available as it calculates the sum of the factor prices elasticities estimated from a reduced form of revenue function. The Rosse-Panzar test has been developed to examine competitive conditions in the light of the contestability theory (Rosse and Panzar, 1977; 1982; 1987). This approach measures the degree of competition by analyzing how each banks revenues react to changes in input prices. It has primarily emerged to test market conditions that encompass all spectrums of competitiveness away from the restrictions brought about by the structural concepts. Basically, it depends on the relationship between gross revenues of the firm and the change in its input prices by using a statistic which is called the H-statistics that measures the sum of elasticities of total revenue with respect to each input price. As this approach includes the revenue equation so for banks, mainly the revenues are interest revenue. In this approach, h-statistics is used to measure the degree of competition. The H-statistics will tell us the responsiveness of revenues to the changes in input prices. If h-statistics is less t han or equal to zero then there will be monopoly, if it is between zero and one then there will be monopolistic competition and if it is equal to one then there will be perfect competition (Greenberg J. and Simbanegavi W.). This approach is preferred when testing the data of different individual banks. Moreover, P-R approach yields similar results without any ambiguity as it has clearly defined hypotheses with specific interpretations. PREVIOUS GENERAL STUDIES ABOUT BANK COMPETITION: Rearrange the literature review according to the claessens and neave. A great number of papers have been written on investigating competition in the banking industry using Panzar and Rosse model (1987). But the motivations for analyzing the nature of the competition are vastly varied like contribution of institutional and structural factors, growth, regions, stability, financing, efficiency, contestability, consolidation, cross-border capital flows, risks etc. The summary of the previous works and their findings can be seen in the Appendix Table 1. Panzar J. and Rosse J. (1987) develop test for Monopoly and use linear regression model to estimate the H-statistic for the newspaper industry, reporting that it is vague to conclude that the newspaper firms earn oligopoly profits. Looking at the cross-country studies carried out in the EU banking markets, one of the earliest analysis is undertaken by Molyneux et al. (1994) who test the Panzar-Rosse statistics on a sample of banks in France, Germany, Italy, Spain and the UK for the period 1986-89. Results indicate monopolistic competition in all countries except Italy where the monopoly hypothesis can not be rejected. Shaffer and Disalvo (1994) use this test to analyze the data of a duopoly banking market in south central Pennsylvania to exercise the procedure for concentration and competitive conduct. Waleed Murjan and Cristina Ruza (2002) examine the Arab Middle Eastern banking markets with this test concluding that the banking sector is more competitive in non-oil-producing countries than the banking industry in oil-producing countries. Gelos and Roldos (2002) apply this method on 8 different countries of Latin America and Europe, finding that market contestability prevents the competitive pressure from declining which can happen because of the consolidation while Claessens and Laeven (2003) process the data of 50 countries obtaining the same results. Bikker and Haaf (2002) assess the banking industry in 17 European countries and six countries that are outside of Europe comparing competitive conditions and market structure. Goddard, J. and Wilson, J. (2006) report misspecification bias in the revenue equation for the banking sectors of 19 developed and developing countries. They suggested a dynamic revenue equation for unbiased estimation rather than fixed effects estimation which is severely biased towards zero. Gilbert (1984) and Berger (1995) test the data for 8,235 banks in 23 developed nations producing the results that a higher degree of market power has less risk exposure. Yuan Y. (2005) assesses the competition in Chinese Banking sector and comes up with the results that China already has had perfectly competitive condition before new foreign entrants and it still has the same situation. Duncan D. (2003) presents the empirical assessment of the market structure of the Jamaican banking sector and competitive trends in the market finding monopolistic behaviour. Al-Muharrami S. et al. (2006) take GCC Arab countries into observation and suggest that Kuwait, Saudi Arabia and the UAE operate under perfect competition; and Bahrain and Qatar operate under conditions of monopolistic competition. Nathan A. and Neave E. (1989) exercise the test on Canadian financial industry and reject the hypothesis of monopoly power in Canadas financial system. PREVIOUS STUDIES ABOUT COMPETITION IN ITALIAN BANKING INDUSTRY: A great number of studies on competition in financial sector of EU countries have been reported which also include Italy in general. But there are also some research-papers which are produced specifically for Italy. Some of them are: Cetorelli N. and Angelini P. (2000) study the case of the Italian banking industry and cite that competitive conditions have improved substantially after 1992, and it is believed that the introduction of the Single Banking License in 1993 also helps fostering the competitive behaviour in Italian banking industry. DellAriccia G. and Bonaccorsi E. (2003) investigate the relationship between bank competition and firm creation. They document that the effects of competition in the banking sector on the creation of firms in the non-financial sector are less favourable to the emergence of new firms in industries where information asymmetries are greater. Coccorese P. (2002) rejects the theory that competition can be easily reduced by the collusive behaviour of the firms, and comes up with the conclusion that strong concentration does not necessarily prevent competition among firms. Trivieri F. (2005) compares the banks involved in the cross-ownership and banks that are not involved. He finds that Italian banks involved in cross-ownership are less competitive than the banks which are not involved in cross-ownership, hence proving cross-ownership decreases competition. GENERALIZED PANZAR AND ROSSE (1987) APPROACH: P-R model assumptions: Firstly, there are some assumptions and conditions in which Panzar and Rosse model works. The model supposes that banks operate in long run equilibrium. Although Goddard Wilson (2006), documents that this condition is not needed any more if a correctly specified dynamic revenue equation is adopted which permits virtually unbiased estimation of the H-statistic. This eliminates the need for a market equilibrium assumption, but incorporates instantaneous adjustments as a special case. So in this paper long run equilibrium postulate holds. Another assumption is that the market participants affect the performance of the banks by their actions. Another postulate is that the price elasticity of demand is greater than unity. Moreover, the model posits that there is a homogenous cost structure. Furthermore, profits are maximised to obtain the equilibrium number of banks and the equilibrium output. In long rum equilibrium, it is known that banks maximise their profits when, marginal revenue eq uals to marginal cost (Bikker and Haaf, 2000). Trivieri F. (2005) also adds that the banks are treated as single product firms which mainly provide intermediation services. EXPLANATION OF PR MODEL: Claessens and Laeven (2003) cite that the Panzar and Rosse model studies the impact of changes in factor input prices reflected in equilibrium revenues by a specific bank. Bikker and Haaf (2000) write that Panzar and Rosse model gives simple models for oligopolistic, competitive and monopolistic markets. This test works on the reduced form revenue equation and uses H-statistics. This H-statistics can tell us not only the nature of competition but also gives information about the degree of the competition. H-statistics if measures between 0 and 1, it is monopolistic competition, 0 is considered as monopoly and 1 as perfect competition. Here, a general banking market model is used, which determines equilibrium output and the equilibrium number of banks by maximising profits. The model is also able to allow for bank-specific variables in the equation. According to Bikker and Haaf (2000), in the long run equilibrium, it is known that banks maximise their profits at the break-even point. The break-even point is where marginal revenue equals marginal cost. So, the bank i maximises its profits, where marginal revenue equals marginal cost: (1) Ri refers to revenues and Ci to costs of bank i (the prime denoting marginal), xi is the output of bank i, n is the number of banks, wi is a vector of m factor input prices of bank i, zi is a vector of exogenous variables that shift the banks revenue function, ti is a vector of exogenous variables that shift the banks cost function. Secondly, it means that in equilibrium at the market level, the zero profit constraint holds (Bikker and Haaf, 2000): (2) Variables marked with an asterisk (*) represent equilibrium values. Panzar and Rosse define a measure of competition H as the sum of the elasticities of the reduced-form revenues with respect to factor prices (Bikker and Haaf, 2000): (3) According to Khan, M. (2009), it measures the percentage change in (equilibrium) revenue due to a one percent change in all input factor prices (change in cost). From duality theory, it is known that one percent increase in factor prices will lead to one percent upward shift in cost function. The impact of this shift in cost function on the (equilibrium) revenue of the banks is directly related to the degree of competition in the banking sector. Bikker and Haaf (2000) further explain that Panzar and Rosse prove that under monopoly or under perfectly collusive oligopoly, an increase in input prices will increase marginal costs, reduce equilibrium output and subsequently reduce revenues; hence H will be zero or negative. An increase in input prices raises both marginal and average costs by an equal proportion as the cost is homogeneous of degree one in input prices without altering the optimal output of any individual firm. Exit of some firms increases the demand faced by each of the remaining firms, thereby leading to an increase in prices and total revenues by as same amount as the rise in costs, resulting perfect competition where H-statistic is positive but not greater than unity. In this case marginal and average cost will be increased by the rise in input prices (Nathan A. and Neave H., 1989). INTERPRETATION OF H-STATISTICS: Panzar and Rosse prove that, under monopolistic competition, H is between zero and unity. H is a decreasing function of the perceived demand elasticity, so H increases with the competitiveness of the banking industry. As a result, this H-statistic can serve as a continuous interpretation of the competitiveness. Although this is not mentioned by Panzar and Rosse (1987) but with some assumptions this continuous interpretation is correct. So, the testable hypotheses are: The banking industry is characterised by monopoly for H=0, monopolistic competition for 0 HYPOTHESIS TESTING; Khan, M. (2009) mentions: Two-sided Perfect Competition Test: Maintaining the long run equilibrium postulate, if banks are operating under perfect competition, a one percent change in cost will lead to a one percent change in revenues. Output will not be changed if the demand function is perfectly elastic under perfect competition, output price and cost both will increase by the same extent. This implies that under perfect competition, H-statistic will be equal to one. Statistically, we will test the following hypothesis. H0 : H = 1 Perfect competition prevails in the banking sector. H1 : H à ¢Ã¢â‚¬ °Ã‚   1 There is no perfect competition in the banking sector. Two-sided Monopolistic Competition Test: If banks are operating in monopolistically competitive environment, one percent increase in cost will lead to less than one percent increase in revenue as the bank faces fairly inelastic demand function. Statistically, we will test the following hypothesis. H0 : 0 H1 : H à ¢Ã¢â‚¬ °Ã‚ ¤ 0 or H à ¢Ã¢â‚¬ °Ã‚ ¥ 1 Banks are not operating in a monopolistic competition environment. One-sided Monopoly Test: Standard theory of market structure suggests that the sum of factor input price elasticities should be less than zero if the underlying market structure is monopoly. Statistically, we will test the following hypothesis. H0 : H à ¢Ã¢â‚¬ °Ã‚ ¤ 0 Banks are operating in a monopoly condition. H1 : H > 0 Banks are not operating in a monopoly condition. (Khan M., 2009) EMPIRICAL FRAMEWORK AND METHODOLOGY: The test is robust with any definition of market whether it is within the national boundaries or it is the global international banking industry because there is no need to specify a geographic market. Before testing, it is commonly necessary to obtain a reduced form of revenue equation which consists of revenue as a dependent variable, factor input prices as independent variables and some controlled or firms specific factors. The basic equation is: Total interest revenue = total cost + controlled variables + error term The panel data is used in the paper which is the data collected over multiple time periods. It is the combination of cross-sectional and time series dimensions. Hence, it can be derived as: Ci = a + Byi + Ei (4) Ct = a + Byt + Et (5) Where, C is the dependent variable, a is constant term, B is the coefficient of the independent term, y is the independent variable and E is the error term. Combining both the equations (4) and (5), the final basic equation can be given as: Cit = a + Byit + Eit (6) But Panzar and Rosse define the H as the sum of the elasticities of the reduced-form revenues with respect to factor prices, so the econometric model of the Panzar and Rosse statistic may be represented by the following equation: (7) For i = 1,..I; t = 1,T; Where, R is a measure of gross revenue. W is a vector of factor prices (the H statistic is given by the sum of the estimated coefficients of the variables in this vector); S is a vector of scale variables; X is a vector of exogenous and bank-specific variables that may shift the cost and revenue schedule, ÃŽÂ µ indicates the error term; I is the total number of banks; T is the number of periods observed (Trivieri, 2005). To calculate the sum of elasiticities, it is necessary to estimate the log linear model instead of estimating a simple linear model that is the reason for taking the log of all the variables in equation (7). The sign of the variables of different costs and bank specific variables are positive showing a direct relationship to revenues (Trivieri, 2005). In this pooled regression, extra intercepts or dummies for time are used, but dummies for individuals are not included because of the application of within-group-estimators. Because with-in-group estimator takes first difference and removes the individuals dummies variables by itself. Thus being a fixed effects model, it measures differences in intercepts for each group and the differences are calculated by a separate dummy variable for each group (Trivieri, 2005). The use of fixed effects panel regression with time dummies allows calculating the relevant parameters of the empirical model. Furthermore, unobserved heterogeneity is controlled by the fixed effects too avoiding omitted variable problems (Trivieri, 2005). In this paper, the intermediation approach developed by Sealey and Lindley (1977), is followed which tells that deposits, labour and capital are inputs for the banks. The empirical model applied in this paper is as: LGIRTA = B1LLABCOST + B2LCAPCOST + B3LFUNDCOST + B4LLTA + B5LBMIX (8) Where, LGIRTA = Log of Gross Interest Revenues over Total Assets LLABCOST = Log of Labour factor price LCAPCOST = Log of Capital Cost LFUNDCOST = Log of Funding Cost LLTA = Log of Loans to Total Assets LBMIX = Log of Loans to Banks and Clients over Total Loans This paper addresses the banking industry of Italy. The data includes 480 banks approximately, of all sizes in Italy. The data contains two different samples. First sample consists of the data from 1995 to 1997, total 3 years, and the second sample contains data from 1997 to 2000, total 3 years. We make a comparison and inference between the results obtained by these two samples through our empirical model and find out the competitive behaviour of Italian financial market. LONG RUN EQUILIBRIUM TEST: An important underlying condition of the H-statistic for competition is the long run equilibrium. Panzar and Rosse (1987) cite that this postulate is crucial for the cases of perfect competition and monopolistic competition. Though, it is not a fundamental assumption in the case of monopoly because when H is less than or equal to zero then it is a long run assumption for monopoly (Trivieri, 2005). Long run equilibrium test for the observations can be done with the prerequisite that: competitive markets equalise the return rates across firms, so that in equilibrium these rates should not be correlated with input prices (Trivieri, 2005). In our empirical model as in Shaffer (1982), this test can be carried out by re-estimating the equation with the proxy for the return on assets, ROA, as dependent variable in the calculation of H. In this context, H = 0 implies that the data are in long run equilibrium (Trivieri, 2005). The intuition behind this theory is that, return on assets, ROA, should not be related to input prices. De Bandt and Davis (1999), define the equilibrium condition as the state in which changes in banking sector are considered as gradual, long run equilibrium for the observations does not mean that competitive conditions remain the same and do not change through out the period of observations (Trivieri, 2005). Although it is inappropriate to use Rosse-Panzar test which is based on a static equilibrium framework, but in the real financial market, the equilibrium adjustments are less than instantaneous, resulting disequilibrium on some points in time or frequently, or always. Moreover, when it is known that the adjustments towards equilibrium are partial and not instantaneous then using fixed effects estimation for the static revenue equation will result in biased H-statistics toward zero (Goddard J. and Wilson J., 2006). For the long run equilibrium, we estimate the following equation: LROA = B1LLABCOST + B2LCAPCOST + B3LFUNDCOST + B4LLTA + B5LBMIX (9) DATA AND SAMPLE DESCRIPTION: The empirical part of this paper uses an unbalanced panel data set on which the Panzar and Rosse methodology has been applied containing a range of Italian banking firms. The data and the samples used for the estimation of H indicator are provided by Dr. Leone Leonida, Queen Mary, University of London. The data used in this paper are annual and refer to the period 1995-1997 (3 years) for the first sample. The first sample for the econometric analysis is made up of an unbalanced panel data of 480 financial institutions of all sizes, for a total of 1401 observations. The number of parameters is 487. The longest time series is 3 years long and the shortest time series is only 2 years long with 2 time dummies. The second sample covers the period of 1998-2000 (3 years) having 1330 number of observation from 474 banks of all sized. The number of parameters is 481. The longest time series is 3 years long and the shortest time series is 2 years long depicting unbalanced panel data with 2 time dummies. In the Appendix, Table 3 provides a summary of the definition of relevant dependent variable, independent variables, bank specific factors variables and control variables. LGIRTA is the log of gross interest revenue over total assets, which is used as dependent variable, also used by De Bandt and Davis (2000), and Trivieri F. (2005). Trivieri (2005) points out that according to Vesala (1995) and De Bandt and Davis (2000) it is the most appropriate choice because it then represents a price equation and not the revenue equation. Moreover, our equation will be consistent with the conceptual structure used by the application of Panzar and Rosses statistic to the banking sector. The choice for taking only the interest part of the total revenue of banks is consistent with underlying notion of the P-R model that financial intermediation is the core business of most banks. However, Shaffer (1982) and Nathan and Neaves (1989) have included total revenue instead of only interest revenue because of the fact that banks have increased their non-interest activities and services which have started generating income other than interest. But s

Crime: Fraud and Overall White Collar Essay

â€Å"Criminal phenomenon† is known as white collar crime. White collar crime was firstly talked by Edwin H. Sutherland who was a criminologist. He defined white collar crime in a presidential meeting of the American Sociological Society. This meeting was held at the state of Philadelphia in December 1939 to 1940s. He defined white collar crime as â€Å"a crime committed by a person of respectability and high social status in the course of his occupation†. (â€Å"Sutherland, 1949:9†). White collar crime includes several of examples such as illegal exploitation of employees, violation, taxes, computer crimes and many more. White collar crime is most characteristically outlined in relation of class attitudes towards those who commit it. Although these offences are penalised by the law but it’s usually considered by the courts and by sections of general public but as much as less guilty crimes are made by individuals there are generally punished by the courts. White collar crime is one of the most dangerous crimes which individuals make profit from couple of hundreds to dollars to millions of dollars and it can be carried out by only one person or a group of people. White collar offenders are normally citizens that come from high social status such as people with degrees in middles class and upper class. If a person is poor there are not most likely to commit crime. This type of crime affects everyone from the communication from business companies. Between white collar crime and street crime there is a massive impact, although white collar criminals often learn to attract less to public attention but the huge public attention attract more depending on an individual and a business. As I mention above people who commit white collar crime are more likely in the middle to upper class societies such as doctors. White collar crime occurs in many forms of ways but this doesn’t involve any physical assault on a person. The occurrences of white collar crime it causes damage to everybody who is in involved in business. A customer will able to be harmed in unplanned events which is recognised as â€Å"organised criminals†, this relates to sales of illegal products. As an overall white collar crime carries brands which are harmful than any other systems of crime. White collar crime is the highest crime to discover or to catch. Individuals that commit white collar crime in the market sections, the media find it difficult to understand because the supervision needs to be updated regularly. White collar consumers have a great deal of expectations by harming the society then other kind of crimes this is because it is â€Å"versatility†. Hazel Croall said in 2008 in the house market there were numerous of people who lost their houses which caused loads of distress in society. Many people suffered but yet white collar crime offenders who made these offences there are normally committed in a large organisations and it makes it more difficult to find these offenders. J Kelly Strader said, the media attends to simply report a minimum of incidents in white collar crime due to having enough evidence been provided. The Deceptive marketing it’s not controlled by the law but it is set as codes and standards which are weakly enforced. The value of prosecuting white collar crime is extremely high for the government to perceive a large percentage of the offenders. Electronic banking is used in the modern which links to street crime offenders, this doesn’t help it becomes worse which the offenders continue to expand to commit in certain areas. As better or worse the government began to feel pressure of the population of the offenders. White collar crime increases the funds in some areas due to crimes been made. I believe that people who are more educated in the late 20s there lean to commit more of white collar crime in technology but as statistics say that the government have has problems to keep up with white collar crime offences in money and technology. Hazel Croall and Edwin Sutherland suggested that white collar crime is still been questioned as from today but it is difficult to figure out how many problems it is causing to society. Most of the studies who study white collar crime argued in 2002 the society blamed the U. S government for the failure which enforced by the law because of the fraud offences which was committed by the street crimes. Business fraud is the most common fraud as day to day in business setting in street crimes in poor communities. As a business fraud in U. S white collar crime cost them a billions of dollars per year but as any other fraud or crimes it cost the U. S organisation a least many then billion as annually. As an average business organisation have lost a lot of millions per a year this is due to employees committing they’re own employees as frauds. Men are twice more likely to commit then women in white collar crime for example 85% of men as mangers cause more fraud in a daily then women as employees but there different types of frauds in society which are been committed by men and these are insurance fraud. An individual making a false claim to insurance companies this links into personal injury and property damage. By this way people earn more money in other words being selfish and greedy. Insurance frauds include things like compasentation claims in accidents and many more. As a insurance fraud the cost as per a year in today world it cost them the twice in the lasr century for example million billions of dollars as annually in yealy. Another common fraud is arson where as a person to a youngster start a fire on a building such as their own business to claim insurance money but in this situation people claim fraud to lie to earn more money for they own business. Credit fraud is the other common fraud committed by white collar crime, a he or she as stolen someone else is credit card by using there information. Credit card fraud causes a million of lost per year. Hazel Croal, in the U. S credit card fraud is the most common fraud a least three quarters of credit fraud has been reported of white collar crime. Why is white collar crime the most dangerous type of crime? Edwin Sutherland implied that white collar crime is most likely to suave and less fourth right but less criminals (white collar crime: the uncut version 1983). The uncut verison 1983 in white collar crime, Sutherland theory at that time was one of the best theories because it concered all types of crime. As statistics white collar crime was never included this was because his theory didn’t support the fact on upper class or business on men weather there commits more crime then women. Sutherland provided four types of evidence which supported his theory and these are personal document, diffusion of illegal practice, isolation and social disograntons. Federal Bureau, believed that white collar crime became a very large of problem to everyone, he said it was punished by the law. He said the law had no control on the hard crime as the crime got out of hand or convicted in the streets. He said it has caused effects on different people lives. Society suggested the government may have took this serious but won’t doing the job enough has it became more serious and treated communities to suffer more. Quinney (1973) outlined two denfititos of white collar cime, occupational and coporate. Occupational crime is committed by a person in occupation. Whereas corporate crime is committed by the corpatrions as a whole the crime is planned and committed for the corporation finaical gain. Reference Joyce P, Criminal justice, an introduction to crime and the criminal justice system, USA and Canada, 2006 HG, org, Global Legal Resources, assessed date 28th April 2013 http://www. hg. org/white-collar-crime. html Strander, Kelly, J Undestanding white collar crime assessed date 28th April 2013 http://www. lexisnexis. com/lawschool/study/understanding/pdf/WhiteCollarCh1. pdf Croal H, Understanding white collar crime assessed date 28th April 2013 https://www. mcgraw-hill. co. uk/openup/chapters/0335204279. pdf

Secrets About Analytical Essay Format Samples for Odepius Revealed

Secrets About Analytical Essay Format Samples for Odepius Revealed The Chronicles of Analytical Essay Format Samples for Odepius You don't need to worry about it, especially when our in-house experts are right here to assist you with the very best analytical essay structures. Now that you're worried and fighting to opt for a best topic for your analytical paper, don't hesitate to get in contact with our in-house experts for the greatest analytical essay topics. It is sometimes a tough process attempting to think of what you wish to write about, but below are just a couple of selections of essay topics. Choose topics that you're most interested about or that which is timely and you wish to have a deeper investigation. An analytical argument is dependent on your thesis that should obviously be extremely developed. One other important component is a selection of the title for your analytical essays. The writing of analytical essay is not a simple task, in order to must be well-organized and understand what your conclusion will be about. Analytical papers are supposed to be written on the grounds of concrete arguments and claims. Put simply, an analytical essay focuses on a single idea or thought and supplies an informative bit of writing on the discipline. Therefore, it is a piece of writing that provides an informative observation about the specific topic or idea. Incompliance with format and outline can lessen your grade, and this is hardly something you wish to occur. An effective means to organise an outline is a graphic organiser that may take the shape of simple bullet points. Following that, you have the option to settle back and relax until the last piece is delivered to you with ou r offer of free revisions available also. On the 1 hand, you may also take a look at our Argumentative Essay templates to help you begin on your position paper. Essentially, you're taking a position on a complicated issue. Often you are going to be assigned to analyze a literary work or a film, but in a few scenarios, you will be provided a chance to offer an analysis of something else, for instance, an issue or phenomenon. You could make 1 claim with a great deal of evidence, or five claims to strengthen your topic sentence. There's not any reason to panic anymore. If you would like to heighten reader's interest try utilizing some proper quotes or provocative questions based on your topic. If you wish to ensure that your ideas are clear enough, ask another person to read your paper. Maybe you can get great assistance from your friends or relatives. Of course some folks just realize that style of writing difficult, but often the issue is not really understanding exactly what's required. Most Noticeable Analytical Essay Format Samples for Odepius Literary analysis isn't the only kind of essay in its family tree. An analytical essay is a particular sort of academic writing. Whenever your analytical essay is all typed up, they can let you make certain it's as excellent as it can get. Writing an analytical essay is surely a task that calls for a good deal of cerebral activity. You cannot hope to skim through articles and books and start to compose the essay. When you begin with an analytical essay then make sure that you plan your essay material according to the topic given. You should certainly search for an analytical essay example. Clearly, writing an essay on this issue of marijuana is too general. There's an endless number of different essay topics which can be analyzed. What you will need is is a blueprinta foolproof approach to receive your essay structured. There are various types of essays that I would assume most of you are already acquainted with. Take advantage of these essays to rate your own amount of writing. Top Choices of Analytical Essay Format Samples for Odepius The introduction usually starts out with some type of background details. So make certain you are clear concerning the statements which you make and give due credit wherever necessary and possible. Thus, have a great critical look at your logic to determine whether the info you provide is really enough. There's no particular style for the introduction, but background information has become the most frequent procedure of approach.

Seeing England For the First Time - 786 Words

On Seeing England for the First Time The effect of imperialism on small colonies is sometimes intrusive and constrained. Jamaica Kincaid devotes her essay, Seeing England for the First Time, to her profound mysticism she has towards England as she grows up on the island of Antigua before it becomes an independent country. With descriptive language, Kincaid reveals her frustration for England within the classroom and at her home through use of imagery and satire. The earliest memories of England Kincaid has is when she was in school as a child. Kincaid opens her essay with sarcasm by saying that England looks â€Å"[gentle, beautiful, delicate, like] a very special jewel; [laying] on a bed of sky blue- the backdrop of the map- its†¦show more content†¦However, being ruled by England, the educational curriculum teaches that England is a place where people got â€Å"a sense of what’s meaningful [and] meaningless†, proving that England people are brainwashed to falsely think that a country like Engl and is also a place of virtue. Kincaid’s frustration roots from seeing people be infatuated with England when in reality, England is invasive, disrespectful, and mendacious. Although Kincaid sees England for the first time in the classroom, English culture is all around her, even in her home. Each morning before she leaves for school, Kincaid describes eating â€Å"a breakfast of half a grapefruit, a bowl of oat porridge, bread and butter and a slice of cheese, and a cup of cocoa†. Even with the food she eats, Kincaid is showing how her life is closely intertwined with the English lifestyle. The lengthy description of her typical morning meal mocks the lavish English lifestyle and proves that her life is heavily influenced by English customs. She describes each box or article of clothing to have â€Å"Made in England† labeled on it, which plays as an ironic, subtle reminder that while Kincaid and her family live in a colony owned by England, they do notShow Mor eRelated Jamaica Kincaids essay On Seeing England for the first Time2315 Words   |  10 PagesJamaica Kincaids essay On Seeing England for the first Time Its shit being Scottish! Were the scum of the fucking earth! Some people hate the English. I dont. Theyre just wankers. Were the ones what were colonised by wankers. We couldnt even pick a decent bunch of people to be colonised by. -Irvine Welsh, Trainspotting The cultural ties to empire are not so easy to efface as the political ones. This is perhaps one of the most important lessons the world has learned from theRead MoreAltered Self-Image According to Thiongo, Orwell, and Kincaid1211 Words   |  5 PagesShooting an Elephant, George Orwell presents imperialism metaphorically through the use of animals to illustrate the power and instability of imperialism. Jamaica Kincaid focuses her essay, On Seeing England for the First Time, on how her view of England ultimately changes when she visits England for the first time. All three writers make a clear point on how alienation affects an individuals life. The writers say that alienation affects an individuals self-image due to the views that were forced byRead MoreSimilarities Between Imperialism And Post Colonialism1606 Words   |  7 Pagesare all a very important part of history. Each of these are present in the writings for the topic of the essay. The three writings that will be discus sed are Clarice Lispectors The Smallest Woman In The World, Jamaica Kincaids On Seeing England For The First Time, and Civil Peace by Chinua Achebe. Each of these writings give great examples of imperialism, colonialism, and post colonialism through different perspectives and from different parts of the world. The effects are shown throughout theRead MoreAnalysis Of The Book The Little Flower 901 Words   |  4 Pagesby Marcel, her life finally has meaning because he encounters her. Their relationship implies that people or other nations are defined worthy or interesting according to western civilization. After seeing England for the first time The prefix â€Å"post† in â€Å"post colonial literature† does not refer to time â€Å"after† colonialism, but to â€Å"place†, that is to say, places away from the metropolis, seen as marginal and that have been suffering the process of imperialism; after all â€Å"it is not because the viceroyRead MoreCompare And Contrast Jamestown Vs Plymouth705 Words   |  3 PagesPlymouth In the 1600’s two different times colonists sailed from England to America. Both landed on the east coast of America. The first ship landed in what today is Virginia while the other one landed in Maine. One stuck together and worked to survive, but the other carried a prisoner and was a free for all. Both handled coming to the  ¨new world ¨ but we learn about both of the different dates today. To start off, the colonists of Jamestown left England to make money and become rich from â€Å"cashRead MoreTheme in Shakespeare in Love1207 Words   |  5 Pagesabout. John Madden’s Shakespeare in love is a ‘romantic comedy’ set in sixteenth century England. Through its two unfortunate protagonists, Will Shakespeare ‘a lowly player’ with writer’s block and wealthy Viola De Lesseps who dreams of ‘love as there has never been in a play,’ it explores the idea of ‘the truth and nature of love’ in the Elizabethan era. Madden portrays the harsh realities of the time through filmatic techniques such as dialogue, motifs and costuming to constantly remind theRead MoreWas Henry Viii Catholic or Protestant1718 Words   |  7 PagesHenry the VIII was the second English Tudor king, after his father, Henry VII. He reigned over England from, 21st April 1509 until, 28th January 1547. During his childhood and his first marriage, Henry was a firm believer of the Catholic Church and of the Pope. However things changed and later in Henrys reign the English reformation came to England; the monasteries were closed and Henry separated himself from the Roman Catholic Church. Henry was definitely starting to look more and more like a protestantRead MoreThe Tragedy of Hamlet, Prince of Denmark by William Shakespeare1230 Words   |  5 Pagescontemplates all of his actions and options, prior to seeking revenge. Less than two months after his father’s death, Prince Hamlet’s mother Gertrude gets remarried to his father’s brother Claudius, which upsets the prince immensely. During Hamlet’s first important soliloquy, he states O God! a beast that wants discourse of reason, Would have mourn’d longer,—married with mine uncle, My father’s brother; but no more like my father Than I to Hercules: within a month; Ere yet the salt of most unrighteousRead MoreJohn Ruskin s Impact On Society1254 Words   |  6 Pagesown power, and whereby we can incur no danger in disobliging England.† Smith also would concur with Ruskin’s quote because Smith, like myself and Ruskin, thinks individuality, boldness, and creativity are important when trying to create some sort of consequence. â€Å"On Seeing England for the First Time† by Jamaica Kincaid is also a prime case supporting Ruskin’s quote, with more of a long-term storyline. When Kincaid was a child, England was â€Å"laid out on a map gently, beautifully, delicately, a veryRead MorePersonal History - Brooke Auchincloss873 Words   |  4 Pagesfrom the narrator’s point-of-view. An example of the first person narrative is already in the opening line: â€Å"Yes I’m from New York† I say shifting my drink to my other hand.† This in-medias-res opening throws us right into the story without telling when or where we are. It informs us that the narrator is from New York, and indicates that she isn’t there at the moment. The setting of this dialogue is probably a bar somewhere in England, seeing that she has a drink, and that the one who answers her