What is quality management?

What is quality management? Question 1 (a)Benchmarking Benchmarking measures performance or quality aspects against a competitor or industry standard. For example we could benchmark the profits made on internal projects. The importance of benchmarking is that it continuously assess the companys performance results against that of its competitors and helps implement good practices to achieve set targets, improve efficiency and to maintain competitiveness. It is also important in decreasing the risks linked with change by observing what factors contributed to the success of other companies. (b) 7-Run Rule The Seven Run Rule, is a technique used for quality control and its importance lies in the fact that it can be used to identify non-random problems when using control charts. It is normally an automatic process whereby alerts are generated when there is a significant variation in output. It helps by determining the non-random problems by evaluating progression of specific characters for the development of products characteristics (for e.g. the no. of defects in software) which could occur in a minimum seven time period. It allows the project manager to see the processes that are out of control, thus he is able to identify the causes of these non-random events and make adjustments to the process to correct or eliminate them (c) International standards There are many tools for quality management, including quality standards and models. Some of them are: ISO 9000:2008 Capability Maturity Model (CMM) Capability Maturity Model Integration (CMMI) ISO/IEC 9126 Software engineering ISO 15504 also known as SPICE Quality can be defined as exceeding customer needs and expectations throughout the life of a product. When we build a system, developers are looking for performance and comply with the users requirements and how well it meets the users needs fitness for use. But it happens that the system developed which is in conformity to the requirements may at the end not please the customer who is becoming more conscious about the quality of the product he is paying for. Customers are more comfortable if they see that quality is being addressed during the project. Nowadays customers requirements/needs are very high, their quality aspects have got much better, they are more demanding now compared to some time back and thats why we have customers issue management. The International Standards are important because they provide rooms for performance improvement in potentially all the activities undertaken by the organization by adopting a systematic and scientific approach to managing the organisation processes/deliverables so that they consistently deliver a product/service as per customers expectations. These processes can be quite easily managed and monitored. In return they improve and ensure that appropriate quality of service is provided to customers and as such the level of customer satisfaction automatically gets increased. Additionally International Standards are also important in helping organisations to provide a kitemark seal of approval for customers and suppliers so they know that the work of the company is of a high standard. (d) Delphi Technique We know that the higher the number of participants in a meeting, the decision making process takes longer in terms of time due to devils advocate. The meeting can get monopolised by the devils advocate whose eccentric views can reach unjustified significance and prevent the group to find consensus. We also know that in a face-to-face discussion, situations of groupthink can occur. This can lead to poor decision making which in turn leads to decrease in quality. So, to avoid such negativities, the Delphi technique is used instead. The importance of Delphi technique is that it decreases such disadvantages towards decision making in groups and creates conducive working environment whereby the probability of groupthink is zero. Anonymity allows the participants to express their opinions freely, promote frankness and avoids approving errors by reviewing earlier forecasts. Its aim is to ensure that everyone gets a fair and equitable chance to express their viewpoint, identify areas where there is agreement or disagreement and try to find consensus. It significantly improves processes of meetings to ensure the quality of deliverables and rapid decisions being taken. Question 2 (a) Net Present Value NPV recognises the value of a dollar received today to the value of that same dollar received in the future, taking into account all cash flows occurring over the duration of the project. Hence, it is said to be a measure of the true profitability of projects. The importance of NPV is to help project managers in the selection of projects by evaluating and prioritising potential projects. If the NPV of a potential project is positive, it should be accepted. However, if NPV is negative, the project should probably be rejected because cash flows will also be negative. According to the value additively principle, if we know the NPV of individual projects they can be added together and hence the value of the firm will increase by the sum of their net present values (NPVs). (b)Return on Investment ROI is the basic tool used to assess both profitability and performance and also to prioritise IT projects. It is calculated by dividing the net benefits of a project by the initial cost of the project. It is possible to identify the percentage return for each cost unit invested by multiplying this value by 100. For projects lasting more than a year we need to use discounted values to take account of the effect of inflation. The importance of ROI is evaluating the financial impact of a project before a project can be started. Negative ROI is bad and means that costs are larger than benefits. High positive values are good and the higher the better. ROI is also used in the project selection process, with investment made on those projects with the highest ROI. (c) Break†even point The break-even point is defined as the point where sales or revenues equal expenses. There is no loss incurred or profit made at the break-even point. Break-even point is important for managers for taking the right decisions. For example it helps the management in knowing the lowest number of units that could be produced to at least earn so much to cover the cost of production without profit or loss.. It helps the management to estimate up to which level sales can be reduced but even though achieve some kind of profit from production and sales or how much costs can increase to even then company at profit point and can survive loss position. (d) Parametric modeling Software cost estimation is difficult, we have several methods and one of the methods is Parametric modeling which is a mathematical model using project characteristics to extrapolate from previous project data, for example in the COCOMO model the number of Lines of Code is one parameter to use when estimating the cost of a new system. It is done at the beginning of the project and is helpful to project managers who are inexperienced in software cost estimation. Parametric modeling is only as good as the model and historic data allows and requires skilled staff to apply the formulae and interpret the results. Parametric modeling also considers several aspects related to the resources required: staffing and costs related to hardware and software required. Question 3 (a) McClellands Acquired Needs Theory As per McClelland our needs are categorized into three aspects: Achievement Affiliation Power Considering my case, currently   I am working as an ICT System Support Officer at the SSR International Airport where I am required to work on shifts and have many deadlines to respect. I can categorise my needs as follows: Achievement My aim is to become the companys next System Administrator who is the next post on the hierarchy and have my salary raised which is symbolise progress and achievement. Power I know that if I attain this post I will need to know how to deal with my co-workers and the user community. I also need to know how to use the institutional powers given to me by the management to organise the efforts, motivate, influence and manage my subordinates. This is essential for me so as to keep control of all the works and do ensure that the goals and objectives of my company are achieved. Affiliation Also, at this position it is going to be important for me to meet and learn from other System Administrators know-how and experience which are indeed important through network interactions. I also know that at this position interaction with other people in the same position is important for sharing of knowledge, skills and tips. (b) The Meyers†Briggs Type Indicator As per Meyers†Briggs Type Indicator we use a four-scale structure for identifying the personality and categorising a persons behavioural preferences: Extrovert/Introvert Sensation/Intuition Thinking/Feeling Judgment/Perception Considering my case, I categories myself as an Extrovert/Introvert I am an Extrovert person, I always discuss new ideas and tentative solutions to problems with my fellow colleagues before they are finalised. Another example is when I am participating in meetings with the top management, I do not hesitate to voice out my opinion or solution to a problem even if I am not sure if the solution is viable or not. But before that I will warn them that we are just suggesting and trying to come up with a fully working solution. Sensation/Intuition I am Intuitive, for example, where I work we have some 600 CCTV cameras which are constantly under surveillance by the Control Room Operators. Lastly we have been experiencing several slowdowns of the system and frequent problems with the workstations used by the operators. Being an intuitive person I have felt that the number of complaints has increased too much which is unacceptable. Instead of carrying a survey on the data storage capacity of our Video recorders, CPU usage, RAM usage or network bandwidth which can be done later I will try to convince the management that we urgently need to buy spare servers for our Digital Video Manager database, Access control servers, video recorders and spare workstations due to the fact theses equipments are nearing their end-of-life since they were purchased in 2006. Thinking/Feeling I have a preference for Thinking but sometimes I can be of the Feeling type too. It happened once where we were busy completing a project whereby we had to configure Microsoft Outlook with the new settings for some 600 users. We have stopped using Microsoft Exchange and using Google Apps instead. We had to complete this job in 10 working days with a workforce of 5 technicians. We were on track and 3 more days left to finish the work, then 1 technician requested 2 days off since he was aggrieved over the sudden death a close family. My Thinking preference made me weigh the effect of the two days off on the schedule and the increased workload of the other 4 technicians who now has to complete the work of their colleague. I was tempted to say NO but my feeling preference made me consider the factors from other side whereby the technicians output will be affected due to his low morale; I accorded him his two days off. Judgment/Perception I categorise myself as a Perceiver, for example when carrying out preventive maintenance on servers I prepare a rough estimate of the time taken to accomplish this task, but I will never give to anyone the estimate. This is because you never know what incidents might happen during the maintenance; some parts might get damage during cleaning/blowing for example or I may notice the beginning of hard disk failure. Therefore the original estimate will be extended due to repair or installation of a new hard disk. I would never operate as a Judger who might see the task of replacing the hard disk as a discrete task and try to complete the maintenance according to the schedule. (c) The Social Styles Profile As per the Social style profile personality of people can be perceived into four zones based on three principal dimensions of Social Style—assertiveness, responsiveness, and Versatility The four Social Styles are: Analytical, Driver, Amiable and Expressive Considering my case, I can say that I show both the Driver Style and the Expressive Style Driver I can say that I am a Driver, due to the fact that I am proactive and like to take initiative, get things done and make things happen. I constantly accept challenges and am always first into solving problems. I prefer to work within time frames and like to focus on actions that will get things done and realize concrete outcomes. Expressive I like to work fast and I like feeling the people who work with me, I am always complimenting, applause when the team has done a good job and aacknowledge the efforts put in to complete projects on schedules. Also my priorities are the user community and the stakeholders. (d) DISC Profiles As per the DISC profiles, all people share these four styles in varying degrees of intensity; D (Drive) I (Influence) S (Steadiness) C (Compliance) I am Direct and Decisive and a like to overcome obstacles and is a good problem solver. I like projects that produce tangible results. I like to discuss solutions with my team first and not afraid to speak out and is generally optimistic. I do not fear new challenges without fear. I am capable of handling several projects at the same time. Question 4 (a) Milestones Milestones are the diamond shapes we like to put in our Gantt charts. It is a kind of measurement that serves as tools to keep track of the progression and any deviation that may happen. Milestones is like the point of start of the next journey to the next milestone, and the time required and money needed will be estimated on the basis of how far we have progressed on the project and it is the number milestones that have been reached by the team. Milestones are simply short-term goals or the targets for the project team. Milestones help to boost the morale and confidence of the team who will enthusiast to go for the next Milestone. (b) Critical Chain Scheduling It is a method of scheduling that take into account the scarce resources available and which are being shared among projects when creating a project schedule. Its importance is to protect projects from the unavoidable slippages that occur in every project. It removes buffers from individual tasks by pushing them to completion in the shortest time possible and instead adds project buffer before the project scheduled completion date and feeding buffers before tasks which are on the critical path. It is a method applied to meet the tight schedule requirements that every project manager faces while, at the same time, helps companies to preserve quality and productivity. (c) Tracking Gantt Charts The importance of Tracking Gantt Chart is that it helps project managers to keep projects on schedule, make sure that tasks start and finish on schedule. The Tracking Gantt chart pairs the current schedule with the original schedule for each task and helps find trouble spots, tasks that vary from the baseline plan. Managers can then adjust task dependencies, reassign resources, or delete some tasks to meet your deadlines. (d) Reality checks Reality checks involve controlling and managing changes to the project schedule. Sometimes a task can be crushed in order to complete the project on time. Hence the importance of reality checks, it allows the project managers to know the how much buffers needs to be removed from certain tasks and redistribute it to other tasks which are lagging behind The importance of Reality Checks are that Project Managers can review the draft schedule or estimated completion date in the project charter and prepare a more detailed schedule with the project team. Also, it helps project managers to make sure the schedule is realistic and followed. if there are schedule problems, Project managers is able to alert top management well in advance. Question 5 (a) a critical path in a complex project Once I worked on a project where I had to configure a Network-attached Storage (NAS) server for the backup of CCTV Recorders and the setting up of the Tape recoders. We have already received the NAS, Dell Recorders etc, but the Cabinet for housing the equipments was not delivered on schedule due to the fact that the ship transporting the Cabinets has been attacked by the Somalian pirates. This caused the project to be completed with 40 days overdue. The configuration of the NAS which became the critical path could not be split as it has to be carried out by only one guy. (b) an effective team meeting My manager carries weekly meetings with his staff and for me his meetings are effective in the sense that there is an agenda, there is a time limit for the meeting and the meetings starts and adjourns on time. The manager ensures that talks do not stray away from original topics. There is always someone form the team assigned to take minutes of the meeting and these are sent to all members to remind them of their tasks and responsibilities. The manager always encourages the team members to speak up their thoughts. At the end of every meeting decisions are taken and everyone knows his tasks and responsibilities. The timeline of the tasks are also known to them. (c) risk mitigation that was found to be necessary I was working on a project where we had lay Fiber optic cables for the CCTV system, but during the task the team identified potential risks regarding the vulnerability of the fiber cables which could be eaten by rats. They were able to work out various mitigating strategies and came up with new type fiber cable which was more resisted to rodents and installed rodents traps and covered man holes and service ducts correctly. Indeed these risk mitigating tasks involve additional costs but was worth it and necessary. (d) crashing a task to reduce its duration Once we had to assemble 200 computers in one week with a workforce of 5 technicians working 5 days a week. Taking into account that the technicians were working on other projects too, it was quite impossible to complete the computer assembly on schedule. The only solution was to increase the workforce with more technicians from other projects in order to meet the deadline.

Cloud Computing Essay -- Technology, Cyber Criminals

â€Æ' Introduction Over the past several years the term cloud computing has become common in homes and organizations alike. Cloud computing can be defined as a pooled set of computing resources that are furnished via the internet. There are three types of cloud services typically available, these services are Platform as a Service (PaaS), Infrastructure as a Service (IaaS), and Software as a Service (SaaS). Organizations can benefit greatly from cloud services because they eliminate the need to buy and manage physical resources. Although such an action cuts cost it leaves organization victim to the vulnerabilities and threats that exist in cloud computing. Throughout this paper I will discuss the vulnerabilities and threats that come along with the adoption of cloud computing. In addition, I will discuss standards and policies that effectively manage the risk associated with cloud computing. Threats & Vulnerabilities The abuse and nefarious use of cloud computing is a threat to any organization that takes advantage of cloud services. Most providers of cloud services make it all too easy for cyber criminals to register for service, all that is need to register for service with many providers is a valid credit card (Cloud Security Alliance, 2011). In addition to the ease of registration providers offer free trials of their services allowing attacker to carry out attacks covertly on cloud services. By gaining such access cyber criminals can deploy malicious code, abuse known exploits, and send spam messages to those that are sharing the same resources. Organizations are aware that threats can be internal as well as external, those that provide cloud services are no exception. The people who the service providers employ can pose... ...ncy use(CIO, 2011). FedRAMP is not alone in the effort to create standards regarding cloud computing. The National Institute of Standards & Technology (NIST) has published two draft publications specifically related to cloud computing. The first document, Special Publication 800-145 (Draft), has been created provide the NIST definition of cloud computing. The NIST has defined as the following: â€Å"Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction. This cloud model promotes availability and is composed of five essential characteristics, three service models, and four deployment models.† (NIST, 2011)

Fiscal Administration

Local fiscal administration refers to systems, structures, processes, resources, and the policy environment government the inter-governmental and inter-local fiscal relations, affecting, among others the following: o the giving of allotments and grants by the national government (NG) to local government units (LGUs); o sharing of taxing powers between the NG and the LGUs, and among LGUs units; o policy on tax rates and structure; o revenue and expenditure planning; revenue and expenditure planning; o revenue utilization and expenditure allocation; o monitoring and approval of budgets, tax ordinances and other fiscal measures; o policy on borrowing and borrowing instruments; and o appointment and supervision of local fiscal officers. The trends in local fiscal administration are inadequacy of own-source revenue to finance basic and devolved functions and thus render LGUs dependent on transfers from the NG.Reliance on few local taxes, particularly the real property tax and business tax ; and uneven level of expenditures hence, unequal access to local public services. With regards to the inadequacy of lgus, the national government must assist lgus in making development strategies to maximize the resources available. In that way, lgus can somehow sustain themselves and become less dependent to national government.It must also help in attracting investors regardless if the leaders are opposition or administration. Lgus must not sole rely on few local taxes. It must encourage business to pay honestly the taxes and give credit to those who pay on time. Those who evade must be persecuted regardless if they are powerful individuals and has connecrtion to top officials. The national government must help in regulating taxes and help in catching the big fishes.

Indian Economy Report Basel Norms Finance Essay - Free Essay Example

Sample details Pages: 7 Words: 2206 Downloads: 5 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? Banks have evolved over time becoming a one-stop shop of varied financial services and given rise to a number of risks. Basel Committee is an informal forum and the norms and policies formed by it are non-binding on member and non-member countries. Then though 113 countries adopted Basel I and 95 countries adopted Basel II. Don’t waste time! Our writers will create an original "Indian Economy Report Basel Norms Finance Essay" essay for you Create order Basel norms provide an opportunity to keep ones own house in order so as to improve the stability and resilience of our rapidly evolving banking industry. Need for uniformity driven by the liberalized and global trade is being meet by Basel norms by gradually converging with the international standards. Broad changes in the Indian Banking Sector in the pre and post reform period (1991 reforms): Pre-reform Banking System: The banking system was entirely in control of government and it catered to the needs of planned economy. The programme focussed on financial inclusion and rural focus. The requirement of huge expenditure for development was met by government through automatic monetization of fiscal deficit. And the interest rates were administered which resulted in cross subsidization. Reforms: Interest rate deregulation and reduction of public sector role were the main focus of the reforms. Huge capital infusion by government and promotion of consolidation and good governance were the targeted goals. But the privatization of public sector banks was not large scale. Post reform Banking System: There was a marked improvement in the capital position and asset quality of the commercial banks. Decline in operating cost followed by improvement in profitability of the banks lead to fall in income ratio. Modernisation of the banks was achieved to a certain extent. Current Banking Scenario in India: In Indian bank dominated and highly diversified financial system there has been a proactive approach to prudential regulations. RBI minimum capital requirement (9%) is more than Basel standards (8%). Indian banking sector is estimated at about US $ 35 billion (in terms of total banking assets) and has been growing at 15% per annum. Although bank assets/ GDP ratio is low (47.55%) as compared to other countries but it has survived well during the economic crises due to tight regulation because of 80% government holding of the assets. Needs for Basel norms: Need for Basel I arouse for the purpose of preventing bank crises and failures ex: Mexico crises (1982, 1984, and 1985), Latin American crises (1980s) through better risk sensitivity and management. But as the world banking industry underwent major transformation and the expanded use of securitisation and derivatives in secondary markets happened the requirement for more risk sensitivity increased. Basel Norms Basel Norms I Accord was completed in 1988 and became effective in end of 1992. It set minimum capital standards considering only credit risk which was set at 8% and was adjusted by a loans credit risk weight which was divided into 5 categories: 0%, 10%, 20%, 50% and 100%. Basel Norms II Focussing on internal rating and internal risk models, three pillars were developed: Pillar 1: Minimum Capital Requirement It was calculated on the basis of risk weighted average of three different risks viz. Credit risk, Market Risk and Operational risk. Pillar 2: Supervisory Review It provides framework for overall capital adequacy, minimum capital ratios and internal adequacy assessment and their implementation. Pillar 3: Market Discipline and disclosure It was there to promote greater stability in the financial system through timely disclosures of qualitative and quantitative information. The status of implementation of Basel Norms RBI being very optimistic decided the first deadline to be 31st march 2007 for the total implementation of the BASEL II norms in all the commercial banks. But due to pressure and coaxing from the commercial banks, RBI had to extend the deadline by another year for all those banks (Indian and foreign banks) which operate in India as well as abroad. For the rest all other banks the deadline was March 2009, and RBI assured that by end of March 2009 all the commercial banks will adhere to the norms of BASEL II. RBI decided to follow a phased approach for the implementation as mentioned in the BASEL II norms. The progression hierarchy for pillar I implementation Preparedness of the Indian Banking Sector Evaluating the readiness through the preparedness of the Indian banks in accordance to all the three pillars of Basel norms, we find that:- Pillar-1 preparedness RBIs initiatives like use of standard approach basic indicator approach for calculation of credit risk and operational risk respectively. Indian banks can leverage from large short term portfolio which they have as they are risk-weighted very low. Pillar-2 preparedness Skill development carried out both at RBI and other banks. Administration enforcement of minimum capital requirement. Validating Upgrading Indian banks. Pillar-3 preparedness Indian banking sector is lagging behind in IT infrastructure. Hence for market disclosure to be successful venture complex IT structure is required which must be defined with architecture with focus on scalability , availability, security and generation of MIS Effect of implementation of norms RBI used moodys ratings to risk-weight the assets https://www.thehindubusinessline.com/2007/02/20/images/2007022000930901.jpg https://www.thehindubusinessline.com/2007/02/20/images/2007022000930902.jpg Table 1 for long term loans and table 2 for short terms loans (which comprise a substantial portion of Indians banks lending). the loans and advances portfolios of Indian banks largely covers un-rated entities hence even if the riskiness of the higher rated corporate bonds is less but that is insignificant in Indian context. But we compare it to Basel I, Indian banks were profitable. The retail sector which was growing in India was low risk weighted; hence it was a profitable venture for the banks to invest in retail sector. As the table -2 shows short term bonds (A1+/A1) have low risk weights which Indian banks have in plenty hence banks had to maintain a low capital for those lending and could loan out more. Dealing with the bad debt The proportions of NPAs have declined (NPA- non performing asset) after the implementation. Three steps followed by government: Banks set aside potential profits as provisions for bad assets Infusion of capital by the government into PSBs. To retrieve as much of these assets as possible from defaulting clients. In India the first two ways are predominant i.e. putting good money to compensate for the bad money. Hence to reduce the NPA further more infusion of capital is required, which the government alone cant fulfill. The banks (PSBs, private) want RBI to let them increase their equity by floating more number of shares. But this would lead to serious implications as the control of the government of the banks would reduce and the foreign banks would have a greater control. Dilution of the control will not help either the government or RBI to meet their objectives which were always in benefit of the common man. The implications of the norms for Indian banking industry- The Monetary Policy One of the major concerns about Basel norms implication is effect on the monetary policy. Lets suppose if contractionary monetary policy is implemented and no. of unconstrained bank is high then these banks can flow money in the market and purpose of policy will be vanished. Similarly in purpose of expansionary monetary policy will not be achieved if no. of constrained bank is high [binding on regulatory capital can lead banks to reduce money flow in the market] To mitigate these unwanted results RBI should make a balance between constrained and unconstrained banks. RBI can put Limitation or norms on banks for lending. 11 Implication of Basel norms for Indias financial inclusion agenda:Particularly, financial sector reform in 90s didnt consider credit structure for rural areas. So, farm communities, rural artisans and micro enterprises remained non-benefited by financial sector reform. Basel Norm will control regulatory capital by high risk coverage standards. Three pillars of Basel II will ensure a huge capital fund against the risks which banks are taking; also these institutions will become sensitive to market perception. But execution of these norms can be affected by bank managements reluctance for informal sectors and small borrowers. Serious opportunities costs lying in this norm, as Banks will need to divert funds from industrial sectors to previously excluded rural sector {MSE} Basel norms are expected to improve conditions for credit flow for agriculture and for SMEs by system of Easy deposit accounts and voluntary general credit cards (GCC). Although lack of Branches staff in rural areas can affect execution of Basel norms, but a focused approach with balancing norms and genuinely inclusive with well spread services can overcome these hurdles in implications. Implications of Basel Norms: Loan growth, GDP growth, Loan Loss Provisioning Loan Loss Provision: Bank keeps reserve to compensate risks which it bare by giving loans. These risks include substandard losses to default losses. Change in loan loss provisions with change in economic situation reduces bank profit volatility and prevent capital by negative shock. Banks measures expected loss by default premium rate rh-rf, and tries to compensate it by keeping reserve capital. Research and study on Indian banking sector found that public sector banks had provisions as 30% of NPAs {only five have more than 50%}. So Basel Norms are being expected to bring a change in this pattern [it should be up to 50%]. SWOT analysis of Basel norms implications on Indian banking industry Implication of Basel norms on Indian banking industry has benefits and concerns on sides. Although some of concerns can be mitigated by RBIs approach by regulations but still some factors remain questioned. We will discuss it through a SWOT analysis Strengths Weakness Basel norms requirement on regulatory capital RBIs proposed norms will bring an approach towards development of Indian economy especially for SMEs and rural areas. Basel norms will improve banking standards intellectual capital of banks. Currently Indian banking sector is affected by poor technology, infrastructure. Risk management practices are not up to standard in Banking No. of small banks in India is very high, Basel norms implications can impact their progress Opportunities Threats Effective risk management procedures and use of advanced technology can bring positive outcome of Basel norms Indian banking industry is benefited by strong asset base Basel norms implication will lead to bring it in to economic growth High regulatory capital requirement can lead banks to fight with managing capital to growth of the industry ( due to high no. of small banks) High Opportunity costs [lending money to SMEs] RBIs stand on the Basal Accord RBI wanted focus of the Capital Accord be primarily on internationally active banks to ensure competitive equality and reasonable degree of consistency in application. Cross holding of capital RBI approved of cross holdings of equity and regulatory investments to a upper cap of 10% of total capital to preserve integrity of financial system and to minimise adverse effect of system risk. Claims on Sovereign Only those External Credit Agencies should be eligible for assigning preferential risk, that disclose publicly their risk scores, rating process and procedures. Claim on Banks RBI wanted that the risk weightings of banks should be de-linked from credit ratings of sovereigns in which they are incorporated. Claim on Corporate Standardised Approach RBIs view is to assign lower risk weights to all claim on banks which are denominated in domestic currency and funded in that currency. Since there is operational risk due to increasing globalisation, use of technology and growing complexity of operations, an explicit capital charge for the same is to be applied. To comply with the third pillar, RBI proposes frequent disclosure on information which enables market participants to take informed decisions. But even this should be done only after proper demarcation between core and supplementary disclosures. The three year transitional agreement is not sufficient for all banks. Status of banks from other nations in meeting Basal norms Overall response has been 70%. European Union has already implemented the accord and many banks have reported ratios according to norms. About 112 countries so far have ratified Basel norms [connected to BAN]. 95 nations have indicated to adapt standardized approach. Around 90 countries are planning to implement pillar 2 pillar 3 by 2015. Economic crisis has delayed timetable of Basel II implementation in some countries (from Asia, Africa, Europe, and America Middle East). Major Criticisms against Basal Norms Basal norms generally favour large banks and that of developed countries since they have huge investments in IT which helps them comply with all the pillars of Basal norm. Even in Basel II norms all the three risks were addressed, still it couldnt save the banks all over from the economic recession. Also it did not account for the complex financial instruments like forward cover, derivatives etc. Our Stand Our nation should strive to maintain strong and vibrant financial system keeping in mind the developmental priorities. This can be done by bringing a right tradeoff between regulatory issues and developmental priorities. Developmental priorities have been more towards infrastructure development and credit flow to SME and agriculture as compared to the regulatory issues that comprise of market discipline, corporate governance success, and application of proper accounting standards. Our approach should be to gradually converge with the international standards with suitable country specific standards. All these above factors will be fruitful when these regulations are changed according to the need of the nation. Our policy makers, therefore, need to negotiate strongly the interests of emerging economies in every possible international forum on regulation.