Factors That Complicate Adherence to Medication-myassignmenthelp

Question: Expound on theFactors That Complicate Adherence to Medication. Answer: Presentation This article investigates wellbeing factors that may convolute an intellectually sick individual from not consenting to an endorsed drug. It centers around a case situation of George a 27-year old male patient who has had numerous confirmations in the past to a nearby intense psychological well-being administration. He (George) is admitted to an intense unit on evaluation request because of his non-adherence to Risperidone, a medicine he has been recommended to treat Schizophrenia. In prior past, George has been determined to have Schizophrenia, a condition he has not concurred with nor being alright with that is the reason he likes to utilize cannabis to treat his condition as opposed to the pharmacological drug endorsed by his therapist. Schizophrenia is an extreme psychological sickness that influences how an individual thinks, oversees feelings and identify with others (Minzenberg Carter, 2012). Despite the fact that there are various medicines to patients with Schizophrenia, Geo rge is endorsed Risperidone, an antipsychotic drug normally taken every day either in syrup or pill structure. George has neglected to follow the drug since he accepts cannabis works in support of himself than Risperidone. As indicated by Minzenberg and Carter, (2012) adherence to meds is essential for the easing of maniacal side effects related with schizophrenia, for example, contorted considerations, distrustfulness, mental trips and sentiments of alarm. Components that Might Complicate Georges Compliance to Medication Non-adherence to drug is an unpredictable just as a multidimensional human services challenge that has been seen by George during social insurance conveyance. Outfitting et al., (2011) holds that the choice on whether to take recommended drugs or not by the individuals with schizophrenia is a hard marvel including various patients in addition to prescription related features. For the patient related variables, they incorporate populace attributes, for example, medication and substance maltreatment as it is apparent on account of George utilizing Canabis, liquor reliance, those recently beginning the treatment, more youthful age at the start of ailment, and low-level contribution in the social exercises (Gearing et al., 2011). Another extraordinary supporter of poor adherence to medicine is an enrollment to the minority ethnic groups. Conviction about disease and treatment are additionally other pivotal variables that decide adherence to prescription. For example, adherence to medicat ions is higher among people with schizophrenia who are clever and mindful of the reason for medications to mitigate side effects of a disease or disregard from being admitted to the emergency clinic. This is obvious for the situation where George wants to client cannabis than the suggested prescription. As indicated by him, he accepts that cannabis can stifle torment and be utilized to fix ailments as opposed to the recommended Risperidone. Additionally the mentality towards intervention and conviction that prescriptions are a lot of successful in bringing down manifestations is another viewpoint that adds to adherence to meds. Painful manifestations and reactions are another wellbeing factors that may muddle Georges consistence to the recommended drug. For example, antagonistic impacts because of antipsychotics, for example, prolactin levels sedation and extra pyramidal side effects are by one way or another dangerous. Then again, unfavorable metabolic impacts of average antipsycho tics, for example, an expansion in weight list likewise add to non-adherence to drugs (Teter et al., 2011). As indicated by research, understanding the advantages of taking prescription to reduce hazardous crazy side effects assists with improving eagerness to permit the reactions trouble for mental wellbeing. Loads of examination holds to the way that the requirement for solid in addition to dynamic restorative relations is crucial for the advancement of adherence to prescription. Different examinations likewise propose that remedial union is profoundly associated with drug adherence among the people with Schizophrenia. On a similar note, different investigations propose that absence of adherence to prescription among individuals increments with the low degree of remedial union among people with schizophrenia (Subotnik et al., 2011). Exploration likewise calls attention to that intellectually sick individuals esteem help from pharmacologists about prescription particularly when they furnish them with data concerning the antagonistic impacts of the medications show a decent comprehension of the people point of view just as tunes in to the patients complaints in regards to the medicine (Velligan et al., 2010). Likewise, the experience of admission to the wellbeing habitats is another vital factor that decides ability to take surgeons; absence of association in dynamic while rewarding the patients, negative weight when entering the wellbeing communities and the part of pressure are totally associated with the absence of adherence to prescriptions as Velligan et al, (2010) recommends. Studies additionally show that individuals having a little degree of sickness mindfulness, just as of an ailment are a lot of liable to exhibit poor/absence of consistence to prescription. Additionally, convictions and observations towards clinging to drugs is likewise founded on before encounters, financial and social perspectives are likewise connected with absence of consistence to prescription. As indicated by Dunbar-Jacob et al., (2012) these components may bring about the way that the more youthful the age, the previous the time of beginning of schizophrenia and the shorter the life expectancy of sickness, the less fortunate the consistence rates become. Nursing methodologies to help George Gain better adherence to his endorsed medicine The issue of patients rebelliousness to drug has been broadly explored and the paces of absence of consistence have not changed much for as long as decades (Australian, 2017). For the instance of George, Nurse ought to embrace the accompanying procedures to assist him with increasing better consistence to prescription. Rearranging routine attributes. In spite of the fact that patients generally confuse medicine guidelines, attendants should utilize straightforward language and have the patient recurrent the directions for appropriate comprehension (Gearing et al., 2011). For the instance of George, the attendant can utilize consistence helps to help him sort out his drug, for example, medicine boxes and alerts to review dose times. The Nurse can likewise utilize microelectronic pack to know whether George has been consuming the medications according to the remedy. Patients like can likewise utilize instruments made to support physical smoothness particularly while controlling infusions. Bestowing significant information As per research, numerous patients don't comprehend solution guidelines and for the most part overlooks heaps of what their attendants let them know. To take care of this issue, the medical attendant ought to furnish George with training by constraining guidelines to enter focuses in each conversation, and utilize straightforward language especially when giving directions or clarifying determination. Another key thing here is include Georges Family and companions just as underline on the key focuses examined. Alter Patients Beliefs/human conduct For complex mediations that require way of life transforms, it is essential to address the patients expectations, convictions, and the capacity to play out an activity. This is because of the way that information isn't sufficient to support consistence in suggestions relating complex conduct change (Bosworth et al., 2011). The attendant would streamline Georges conduct change by guaranteeing that he sees his ailment to be not kidding, have channels to address his feelings of dread/concerns and consider him to be having imperative abilities expected to perform wellbeing conduct. Assessing adherence In a perfect world, doctors belittle the issue of absence of consistence in patients. At the point when a medical caretaker can't distinguish rebelliousness, it gets hard for her to address the issue. Hence, it turns out to be difficult to quantify just as assess quiet consistence dependably. The attendant can accomplish this through self reports, sedate considering admirably as pee and serum tranquilize levels. In addition, the doctor ought to guarantee normal assessment of the patient to expand his adherence to drug. Directing A complete exchange of the benefits and negative marks of a recommended medicine during patients conference is viewed as the establishment for the development of prescription consistence (Di Matteo et al., 2012). For this situation persuasive meeting can be exceptionally useful to outline a conversation of the patients fears, treatment basis and social weight. Hardeman et al., (2010) holds that the estimation of the patients decision should be reinforced and manages for the pills utilization be in composed organizations. In addition, the part of updates likewise contains the patients family, the attendant and the pharmacologist. A patient needs not to be given the data alone about the impacts of a specific prescription, the dose and time of admission, yet in addition be given data seeing the importance just as odds of symptoms and connections (Gearing et al., 2011). Consistence to prescription should be talked about each time the patient returns to the advisor however much as could b e expected. For instance, this should be possible by mentioning the patients to present the clinical joint boxes for conversation and joint examination. Studies have indicated that distraction is a basic component prompting absence of consistence. This is a clarification for the investigation that numerous impacts of advising are transient and the test is to execute persistent directing procedure. As indicated by Di Matteo et al., (2012) phone directing as a measure to help prescription consistence has been demonstrated valuable in a two-year randomized controlled preliminary in more than 400 non-disciple patients accepting at least four medications endorsed for the treatment of an interminable infection Restorative methodologies Fruitful treatment is tied in with connecting with the patients in a human services process as indicated by their mental determination just as subjective level. The five As of an essential outpatient care are approachab

Fire Service Pro Qual Essay Example | Topics and Well Written Essays - 750 words

Fire Service Pro Qual - Essay Example In any case, the frameworks primary accentuation is on the methodology used to control assessments. In doing this, the framework guarantees that the taking an interest foundations and substances act as per IFSAC’s set down systems and strategy structure planned for improving the nature of the affirmation programs (IFSAC). It is essential to call attention to that IFSAC’s job is to offer accreditation to organizations and projects that give confirmation to people. In actuality, this suggests IFSAC job isn't to certify local groups of fire-fighters. Like IFSAC, the Pro Board was built up in 1990 with the obligation of authorizing associations that kept the expert capabilities norms gave by the National Fire Protection Association (NFPA). For this situation, the system’s essential duty is to certify associations that gave accreditation to vocation and deliberate firemen openly local groups of fire-fighters. In any case, it is critical to take note of that the Pro Board additionally considers different associations with fire assurance interests. Guaranteed people from Pro Board’s certify substances satisfy the thorough national guidelines estimations estimated against their companions. Likewise, the accreditation upgrades the validity of an association, which enables the association to make sure about more assets during spending time (The Pro Board). The National Fire Protection Association (NFPA), gives different affirmations to guarantee that fire experts obtained the essential capacity, which requires information and abilities, so as to stay capable in their line of obligation. One such accreditation is on proficient capabilities for fire assessors. So as to accomplish this confirmation, fire overseers ought to have the information, aptitudes, and capacity required to play out their jobs. Initial, a fire examiner ought to be able to get ready review reports that are clear and compact as indicated by the codes and principles. In

Getting MISTI-fied

Getting MISTI-fied So on my way back from my BE.370 recitation, walking down the Infinite, I heard a loud boom coming from Lobby 10. Upon closer inspection, I discovered that not only was there the booming, there was FREE FOOD. Cue the long lines of students. MIT students do not pass up free food. So apparently, every hour today, MISTI which stands for MIT International Science and Technology Initiatives has been giving out free food. While I was passing through, the free food was Italian coffee and sushi. So all week, MISTI will be celebrating MISTI week. Right now, theres a lecture going on titled Youth Culture, Music, and Cell Phone Branding in China over in Sloan but I wont make it there in time. A later passage down the Infinite yielded free burritos from Annas Taqueria and mariachi music. Other events this week include: Catalan and Sanskrit Lessons Movie Screenings including Amores Perros and Veer Zaara Panels, Photo Contests, and even a Soccer Tournament Ill try to update this entry as I can with photos of events that I attend. Until then, Im off to enjoy the beauty of free food and bhangra. Word.

Methods And Techniques For Advancement Of Nursing Knowledge Free Essay Example, 3000 words

The best evidence base for practice in case of nursing would develop from the integration of research evidence with practical knowledge. Polit and Beck have defined evidence-based practice to be "making clinical decisions on the basis of the best possible evidence. Usually, the best evidence comes from rigorous research but EBP also uses other sources of credible information (Polit Beck, 2004, p. The focus of this assignment is on the assessment and care planning of an elderly client who was nursed and cared for by me in the hospital where I had a placement as a student nurse. This patient was admitted due to (COPD). The patient was a 67-year-old lady with severe COPD. A recent exacerbation resulted in prolonged hospital admission. She was breathless at rest, had a persistent cough and appeared to have some ankle edema. The identity of the patient will remain undisclosed due to the ethical need for confidentiality. The NMC Code of Conduct (2009) in its article 8 indicates the impor tance on the part of nurses to respect the confidentiality of the client, which is also legislated (NMC, 2009). We will write a custom essay sample on Methods And Techniques For Advancement Of Nursing Knowledge or any topic specifically for you Only $17.96 $11.86/pageorder now However, for this assignment, she will be called Ms. Jenny, which would obviously be a pseudonym. The medical history of the patient is that of a long-suffering with cycles of exacerbations and remissions, which has been accompanied with a history of hypertension, complicating congestive heart failure, and diabetes mellitus. The social history of the patient indicates she had been a smoker, lives alone, with one son staying in the United States with his family. The patient has complicated lung disease, which has characteristic exacerbations and remissions. The patient presented with restlessness, agitation, dyspnoea, disorientation, and confusion. When asked she also complained of a headache and dizziness. She had a rapid rate of breathing with evident use of accessory muscles of respiration. An individual and person is a whole, which stands in sharp contrast with the fragmented and systemic view of the human body as per the medical model.

The Salem Witch Trials A Time Of Hysteria And Confusion

The Salem Trials Introduction - The Salem Witch trials was a time of hysteria and confusion. People were being accused and giving false confessions of witchcraft being performed on the people of Salem, Massachusetts. Personal Statement - The delusion of witchcraft stemmed from fear. Fear of savages, fear of women gaining control and ultimately fear of the unknown. RoadMap - It allowed for the town s imagination to run rampant and to make up these far fetched ideas of how bewitchment came to be, how it affected salem, and how they chose to treat it. Point one - According to history.com 9 year old Elizabeth parris and 11 year old Abigail Williams began having outbursts of screamng and violent contortions. When the town doctor came to examine them he claimed they were under bewitchment. Other girls in the community began to show the same symptoms including Ann Putnam, Mercy lewis, Mary Walcott, Elizabeth Hubbard, and Mary Warren. As these young girls were under their spells of bewitchment they would accuse other women in the town of causing these afflictions and scream out they were being hurt by these women. Among the accused was Tituba - The Parris slave -, a homeless woman named Sarah Good, and the elderly Sarah Osborn. These three accused witches would stand trial in front of the magistrates, Jonathan Corwin and John Hathorne, even as the accusers would show a display of spasms, contortions, and screaming. Good and Osborn remained to plead not guilty and defendShow MoreRelatedEssay on The Theories of the Salem Witch Trials1135 Words   |  5 PagesThe Theories of the Salem Witch Trials The Salem Witch trials and what caused them is very debatable. Some theories lead to Rye poisoning from bread to even people faking it. The most believable claim is that people were faking it. Everyone had a motive and they all just wanted to save themselves. It was a time when people were selfish and only cared for themselves. This time in Salem was a troubling time, making it seem likely that satan was active (Linder). The townsfolk are believed to haveRead MoreThe Effects Of Hysteria In The Crucible1489 Words   |  6 Pagesfor. Hysteria is a major leader in past and present day society when it comes to how people act and think in different situations. The Crucible provides great examples with how hysteria can affect a group of people. Back in Salem, Massachusetts 1692, hysterics swept the town, creating storms of emotion. Everyone is wondering, what to do? What to think? In The Crucible, Arthur Miller uses the effects of mass hysteria to reveal his purpose of using it in his writing, how society at that time reactsRead MoreHysteria In The Crucible1474 Words   |  6 Pagess behavior and thoughts. Hysteria, uncontrollable emotion among groups, is a major leader in past and present day society when it comes to how people act and think in different situations. The Crucible provides great examples with ho w hysteria can affect a group of people. Back in Salem, Massachusetts 1692, hysterics swept the town, creating a storm of emotions. Everyone wondering, what to do? What to think? In The Crucible, Arthur Miller uses the effects of mass hysteria to reveal his purpose ofRead Moreâ€Å"Red Alert Is The Colour Of Panic. Elevated To The Point1704 Words   |  7 Pagesfull-throttle screaming And the welfare is asphyxiating Mass confusion is all the new age and it s creating a feeding ground for the bottom feeders of hysteria† American Eulogy by Green Day was written and released in 2009 giving their audience the feeling of what it is like to be in the middle of mass hysteria and trying to escape that life. Just as people felt During the Cold War and the Salem Witch Trials. 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Essay English Free Essays

Opinion column in the glamour magazine – Stereotypical jokes on intelligence – For years and years I’ve been subjected to blonde jokes. You hear blonde jokes at elementary schools, you hear them around the water cooler at work and you hear them on morning drive-time radio. Ever heard of this one before? â€Å"Q. We will write a custom essay sample on Essay English or any similar topic only for you Order Now How do you get a blonde to laugh at a joke on Saturday? A. Tell it to her on Tuesday. † Are those jokes about blondes or intelligence of a certain ethnical group really considered as funny? Are they politically correct? One could tell a joke about intelligence of almost every ethnical group or attribute of someone, does this mean that these jokes are political correct now, because everyone is affected by it? A random person tells a joke about my intelligence assuming that I am stupid just because I am blonde. I don’t care about the blonde jokes, simply because the ones who tell the joke know exactly that it is not true. If people start to believe and take it personally, it could cause a lot of problems. I am aware that I am not stupid, why would I be successful in my work then? Last week I walk into the office, everything as usual; my coffe and work awaiting on my desk, the employees getting ready to work. I get introduced to a new employee. A young tall man, seems confident, blue eyes, brown hair and dressed in a suite. Let’s say: Good looking. We talk, we laugh, I spill my coffee. He laughs and immediately has a blonde joke ready. Does he never spill his coffee? I could assume he’s a dumbass, just because he has the stereotyp of a good looking arrogant man. Certainly he didn’t mean to offend me, because we both know that blonde jokes are not true. Where is the context between blonde and dullness? The answer I believe is jealousy. Blondes are also seen as men-attracter, no matter if it is true or not. â€Å"Men prefer blonde women†, therefore other hair colored women are in the shadow of the blondes. Smells of jealousy! The men are not getting blamed for prefffering the blondes, but the blondes as stupid as they are â€Å"running after men†. Jealousy? Seriously? Are human beings getting so upset that they have to discrimnate someones intelligence only because of their hair color? Hair color neither has feelings nor can it talk, so what is it about the hair color? It is not only the blondes who are hearing the jokes over and over again. The first impression of an Asian people have is that they are smart. Without even talking to them their prejusdice is that this Asian person is smarter than everyone else. What would you say about the intelligence of an American? Yes, I can forsee you would say that they have no general knowledge. A joke about Americans â€Å"How does an american search for a rabbit ? He imitates the sound of a carrot. â€Å" The joke itself is funny and everyone knows that it is not true, since it is unrealistic. The thought behind the joke though is still considered as true, that Americans are stupid. Here is the point where it could cause troubles, if people actually believe in it. One cannot judge the Americans as stupid, since their culture might have teached them differently. Eduaction is different, but judge the one who is responsible for it and not the ones who are dependet of it. If they are not intelligent, why are we then buying their products? I use my Iphone everyday, I am writing on my MacBook and I love Starbucks. They all are American products. It needs intelligence to succeed, no matter what kind of product. It could be food, clothing or technic. I’m comparing Asians, Europeans and Americans now with their culture. People also say that the geographical knowledge of Americans are the worst, but does everyone in the world besides the Americans know where Estonia is? Would you know off by heart without looking at a map? I believe half of us wouldn’t know. In the American culture, people express one’s sentiments no matter if it is right or wrong and in case it is wrong they will laugh with it and correct is whereas in Europe it is embarassing. In Switzerland, where I live, it is an embarassement if you said something „veryâ€Å" wrong and people will laugh at you and not with you. In the Asian culture, for example in the Chinese culture there is the one-child policy. Obviously the parents want his only child to be successful and need to push them, therefore their effort overall in the culture is much higher than the ones of Americans. This still does not mean that Asians are smarter, only that some put in more effort and I would consider this as positive rather than negative. Maybe some are just again jealous that they don’t have the endurance to put in enough effort to achieve a goal. All these jokes about intelligence are superficial and therefore spread easily within a community or even outside the community. There is no logic behind these jokes, since one is proud of ones individuality and the whole world discloses individuality, but these jokes show the opposite. I clearly cannot see any correlation between these to human thoughts. I will just live with the blonde jokes and be amused of them rather than being offended, they are still funny. Intelligence cannot be measured through appearance or nationality. It’s obnoxious, unfair and stereotypical to blame intelligence on appearance or on an entire nationality. The lack of intelligence or â€Å"overdose† of intelligence simply doesn’t come from these factors. How to cite Essay English, Essays

Lilith Fair free essay sample

Recently a friend and I attended the Lilith Fair. It took place at an amphitheater, located on the outskirts of Pittsburgh, Pennsylvania. The Fair toured all summer hitting many major cities across the United States. Sarah McLachlan is the founder. She wanted to start a festival to celebrate the accomplishments of women in music. She named it Lilith in honor of the ancient mythic figure. Joining Sarah on stage were Fiona Apple, Tracy Bonham, Meredith Brooks, The Cardigans, Paula Cole, Shawn Colvin, Sheryl Crow, Indigo Girls, Jewel, Lisa Loeb, Joan Osborne and many more women who performed on side stages. The show I saw had Lisa Loeb, Shawn Colvin, Jewel, Sheryl Crow, Indigo Girls, and Sarah McLachlan. The scene at the Lilith Fair was very mellow. Everyone sat back, relaxed, and enjoyed the music. At my show it rained, but that only added to the atmosphere. Everyone I saw seemed to be having a good time and I did too. We will write a custom essay sample on Lilith Fair or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The only problem was that the Fair seemed overrated and commercialized. Even though most performers had respect for the audience, others did not. For example, Jewel did not finish her set when it started raining. Even though she was under a roof, she threw a fit. In all, the idea of celebrating women in music is wonderful and Sarah McLachlan had the right idea. I hope if The Lilith Fair decides to tour next summer, they get their act together a little more. Even though The Lilith Fair was not the best concert I have been to, I would recommend going just for the experience

Physics Laboratory Checklist Essays - Laboratories, Microsoft Excel

Physics Laboratory Checklist - Mrs. Gordon International Academyrighttop Laboratory experiences are important parts of the International Academy's physics courses. Some of these experiences will be hands on labs using the materials in the physics lab kit and everyday household items, some will be virtual labs, using specially written labs intended to model as much as possible a real life experiment. In either case, you will be conducting the laboratory experiment following a set of instructions, collecting data, analyzing your results and reporting your conclusions. Sometimes just the amount of resources, materials, and data can get overwhelming. It is important in science to make conclusions based on the data so it is equally important for you to include your data when you report your results and conclusions. Often we are simply confirming a known physics concept, but in a lab (or home) environment we rarely see what we expect. There are many reasons for that, but most importantly is the idea of experimental uncertainty and error. We will study the effec ts of these throughout our courses. This checklist (found on last page) is meant to help organize your lab data and analysis so that you get the most from the experiment and of course the highest grade possible on your lab report. We do not use traditional lab reports but instead simply ask you to answer a few questions about your lab. Because each student will have their own data, each student's answers may be very different. That does not mean anyone is necessarily right or wrong, but it does mean that it is critically important that you include your data to support your answers. You are always right if your answers are supported in this way. You are doing a lot of work so you want to get full credit for it! Explanation of Checklist Download all needed files for the lab. You can find these either in the Lesson Resources, the links within the Lab lesson slides or in the Unit resources (scroll down to the lab). Lab Instructions (only use those posted in the lesson content or the lab materials folder) Student guide Laboratory Guidelines/Safety Graded Assignment or Lab Report for Discussion (LRD) (only use those posted in the lesson content or the lab materials folder) Study Lab Lesson Slides Attend live or watch recorded Classconnect for the lab if available. Prepare Data Tables: These include all data that has been collected during the lab. You are provided data tables in your instructions. Your choices to complete them include: Type directly, then copy and paste into the lab report or lab discussion post. OrUse Excel (you can still copy and paste the tables so you have the format and columns headers). Save and attach Excel file as additional file with your lab report or discussion. OrPrint out the instructions, handwrite in the data tables, then scan (pdf or jpg), copy and paste or attach as separate file. Set up lab and conduct experiment following instructions closely. Make Graphs required in the instructions or for the lab report. Recommended that you use MS Excel or other graphing/spreadsheet program (see graphing tutorial). All graph components such as title, axes labels and units, trendline with equation, etc must be included. Use Add trendline feature, then show equation for slope calculations. Copy and paste into lab report/discussion or attached as separate file. OrMake hand drawn graphs, including all required components. There is graph paper you can print out to use in the lab resources. Draw a best fit line. Show your data points (x1,y1), (x2, y2) and work for any slope calculations. Scan, copy paste or attach as separate file. Complete Calculations required in the instructions or lab report. Show work including equations for required calculations. This can be handwritten (scanned, copy/paste, or attached as separate file). OrUse equation editor in MS Word or other program OrSome students also use "ink" tools that they may have in their word processing program or a separate program. If repeated calculations, you only need to show the work for a "sample" calculation. This must include your starting equation before any substitutions, then at least one example including any necessary metric conversions and proper units. Complete Lab Report (Graded Assignment) or Lab Report for Discussion (LRD) Answer questions using your data, graphs

Overview of Spanish Verb Tenses

Overview of Spanish Verb Tenses It almost goes without saying that the tense of a verb depends upon when the verbs action takes place. So it shouldnt be surprising that the Spanish word for tense in the grammatical sense is tiempo, the same as the word for time. In the simplest sense, there are three tenses: the past, present, and future. Unfortunately for anyone learning most languages, including English and Spanish, it is seldom that simple. Spanish also has a tense not connected to time, as well as two types of simple past tenses. Overview of Spanish Tenses Although both Spanish and English have complex tenses that use auxiliary verbs, students often begin by learning four types of simple tenses: The present tense is the most common tense and the one invariably learned first in Spanish classes.The future tense is most often used to refer to events that havent happened yet, but it can also be used for emphatic commands and, in Spanish, to indicate uncertainty about current happenings.The past tenses of Spanish are known as the preterite and the imperfect. To simplify, the first is usually used to refer to something that happened at a specific point in time, while the latter is used to describe events where the time period isnt specific.The conditional tense, also known in Spanish as el futuro hipotà ©tico, the future hypothetical, is different than the others in that it isnt clearly connected with a particular time period. As the name implies, this tense is used to refer to events that are conditional or hypothetical in nature. This tense should not be confused with the subjunctive mood, a verb form that also can refer to actions that arent necessarily real. Verb Conjugation In Spanish, verb tenses are formed by changing the endings of verbs, a process known as conjugation. We sometimes  conjugate verbs  in English, for example adding -ed to indicate the past tense. In Spanish, the process is much more extensive. For example, the future tense is expressed using conjugation rather than by using an additional word such as will or shall in English. There are five types of conjugation for simple tenses: Present tenseImperfectPreteriteFutureConditional In addition to the simple tenses already listed, it is possible in both Spanish and English to form what is known as the perfect tense by using a form of the verb haber in Spanish, to have in English, with the past participle. These compound tenses are known as present perfect, the pluperfect or past perfect, the preterite perfect (limited mostly to literary use), the future perfect and the conditional perfect. A Closer Look at Spanish Tenses Although the tenses of Spanish and English are very much alike- after all, the two languages share a common ancestor, Indo-European, with origins dating to prehistoric times- Spanish has some peculiarities in its tense usage: The differences in the past tenses of ser and estar can be especially subtle.Sometimes, the word used to translate a Spanish verb can vary depending on the tense used.It is possible to describe events that will happen in the future without using the future tense.While the English auxiliary verb would is often an indication that the conditional tense is being used, such isnt always the case.Although the conditional tense is a common one, there are also  conditional sentences that use other forms of verbs.By using estar as an auxiliary verb in the various tenses, it is possible to form progressive verbs that can be used in various tenses.

The Green Oxidation of Cyclohexanol to Cyclohexanone Lab Report

The Green Oxidation of Cyclohexanol to Cyclohexanone - Lab Report Example KMnO4 and Cr (VI) compounds such as H2CrO4 have been widely used as oxidizing agents in the oxidation of alcohols to carbonyl compounds. However, each of these two reagents has its disadvantages, and chemists are increasingly using reagents containing chlorine in a positive oxidation state such as hypochlorite compounds. Sodium hypochlorite is the reagent chemists most commonly use for this purpose. Sodium hypochlorite has three crucial advantages over Cr (VI) compounds when used to oxidize cyclohexanol to cyclohexanone. Firstly, it has no hazardous waste products in contrast to Cr (VI) oxidations, which yield Cr (III) compounds, which are toxic to aquatic life. Secondly, sodium hypochlorite and its products have no skin or membrane irritation effects other than a negligible amount of chlorine gas, in contrast to Cr (VI) compounds, which are skin and membrane irritants. Thirdly, hypochlorite reagents are considerably cheaper than Cr (VI) compounds (Baird & Cann, 2008, p.67). 8 ml of cyclohexanol and 4 ml of glacial acetic acid were added to a 250 ml Erlenmeyer flask. A thermometer was placed into the flask and used to record the initial temperature. 115 ml of commercial bleach (NaOCl) was obtained in a beaker. The bleach was slowly added to the Erlenmeyer flask using a disposable pipette while slowly stirring the flask. The temperature was maintained between 40oC and 50o using an ice water bath large enough to hold the flask. After adding all the bleach, the mixture was allowed to sit for about 20 minutes. The mixture was continuously stirred during this period. The presence of the oxidizing agent was tested by adding a drop of the solution to a piece of starch-iodide paper. There was no color change indicating that hypochlorite was not present. 4 drops of thymol blue indicator were added to the reaction mixture. The solution turned yellow. 18.4 ml of 6 M sodium hydroxide was added to the reaction mixture until a neutral pH was obtained. This point was indicated by a color change to blue. A simple distillation apparatus was set up, with the receiving container being a 50 ml graduated cylinder. A 250 ml round-bottomed flask was used as the â€Å"still pot†. The mixture was distilled through steam distillation, and a mixture of cyclohexanone and water was obtained in a graduated cylinder. 40 ml of distillate was obtained. B. Isolation and Purification of Cyclohexanone The distillate mixture was placed in an Erlenmeyer flask. 6.8 g of NaCl was slowly added to the 34 ml aqueous layer with stirring in order to reduce the solubility of the cyclohexanone. This enabled it to be extracted completely using ether. The mixture was poured into a separatory funnel. Ether was added to the mixture until a 20 – 25 ml of organic layer was obtained. The separatory funnel was gently shaken with frequent venting. The aqueous and organic layers were left to separate. The aqueous layer was run off into a beaker labeled â€Å"aqueous waste†. The ether solution was poured from the separatory funnel into an Erlenmeyer flask. 3 M sodium hydroxide solution was added to the solution of ether, and the flask was gently shaken with frequent venting. The resulting aqueous layer was

Impact of Television Technology in Global Communication Research Paper

Impact of Television Technology in Global Communication - Research Paper Example In fact, 89% (1.42 billion) of all households worldwide have 1.6 billion TV sets with 4.2 billion (61% of the world’s total population) TV viewers (Ahonen 1). Particularly in the US, 99% of its households have TV sets and are watching at an average of four hours a day which when computed in a 65-year life would mean a total of nine years of television viewing, the A.C. Nielsen Co. says (Herr 1). â€Å"Its all-pervasiveness and instantaneity are finely tuned to our way of thinking†¦ [that] we expect from it effortless pleasure and hot news† (Peters 1).This captivating power of the television technology is essentially embedded in the very term ‘television’. Etymologically, the term ‘television’ (TV) is a combined term of different origins. The prefix ‘tele’ is from Ancient Greek that means ‘far’; the main word ‘visio’ is from Latin that means ‘sight’ or ‘seeing’. Hence, televis ion means ‘far seeing’ – a perfect term for the great miracle it offers mankind, as it amazingly extends man’s seeing capability beyond the limits of physical distance. (Stephens 46) Technically defined, â€Å"television is the electronic delivery of moving images and sound from a source to a receiver† (Noll, par.1). The receiver manipulates three kinds of different necessary information: the picture, the sound, and the synchronization. Amazingly, the picture is moving though not real but simply an optical illusion made possible by the rapid succession at 30 per second rate of slightly different still frames. (Videoforms 1) It is this experience that keep people hook up to the TV. Today, it has even become a necessity and has become an indicator of one’s socio-economic status. In fact, the global distribution of television ownership and use is illustrative of the so-called digital divide as can be seen in the following data. The Industrialize d World has 630 million TV sets in 470 million households with only 1.05 billion viewers, hence a ratio of 1.3 TV set for every household and a ratio of 1.6 viewers for every TV set. On the other hand, the Emerging World has 970 million TV sets in 950 million households but with 3.15 billion viewers, exactly three times larger than that of the Industrialized World, hence a ratio of only 1 TV set for every household and a ratio of 3.24 viewers for every TV set. Also, 34% of households in the Industrialized World own 2 or more TV sets; whereas, only 2% of households in the Emerging World own 2 or more TV sets. (Ahonen, par. 4) 1 The Evolution of Television How could a lifeless entertainment device greatly impact global communication? Understanding the evolution of TV from its inception to its current form (see Appendix) will help clarify this unexpected phenomenon. The television technology had its humble and skeptical beginnings, but except for the Internet is the 20th centuryâ€℠¢s most influential invention, Monaghan argues (1). Even its own inventors may not have imagined the development it has reached today and the further development it could reach in the future. The invention of the television cannot be attributed to a single person but many individuals (Bellis, â€Å"The Invention of Television† 1) whose works and accidental discoveries on optical, mechanical and

Determinants of Debt Maturity Structures in Pakistan

Determinants of Debt Maturity Structures in Pakistan CHAPTER 1 Rapid changes in financial service industries make it essential to determine the profitability of financial institution. Banks plays a key role in financial market of a country and for this its very important to evaluate that bank operate in efficient manner also what are the factors which affect the profitability of banks. A bank generates profit from the differential between the level of interest it pays for deposits and other sources of funds, and the level of interest it charges in its lending activities. Historically, profitability from lending activities has been dependent on the needs and strengths of customers. In modern era, investors have demanded a more stable revenue stream and banks have therefore placed more emphasis on transaction fees, primarily loan fees but also included service charges on an array of deposit activities and other services (international banking, foreign exchange, insurance, investments, wire transfers, etc.). Lending activities provide the huge size of income to commercial banks. In the past 10 years banks have taken many measures to ensure that bank remain profitable while responding to increasingly changing market conditions. Financial sector of Pakistan structured on Scheduled and Unscheduled Banks. Scheduled Banks are regulated by the State Bank of Pakistans Regulations, through different wings, and are subject to different SBP regulatory requirements such as capital and liquidity reserve requirements. The financial division analysts were projected higher profitability in 2008. That projection made possible because State Bank of Pakistan has raised its discount rate in which the banks can invest to earn a good return. The rising lending rates contributed considerably to ensuring an increased profitability acknowledged by State bank of Pakistan. Factors that affect the profitability of Commercial Banks are both Endogenous and Exogenous. Endogenous factors are within the Control of Management such as quality of management and its policies, efficiency of management in generating revenues and controlling costs, bank capitalization and location. Exogenous factors are outside management control, especially macro economic indices such as Interest rates, Exchange rates, Inflation, and other regulatory and market constraints. The banking sector has been a source of stability for this country, because as you have seen in many countries, the banking sector has weakened and outright nationalization has taken place in some countries. However, the reforms that have taken place in Pakistan banking sector over the past 8 to 10 years have given stability and strength to this sector. There are some ratios, by which can measure the strength of a banking sector, and the most important amongst those ratios is Capital Adequacy; our countrys average capital adequacy 8 percent some banks have less or some banks have more. Macro stability taken some time to trickle down was not something that happens over a month or two, because macro stability causes improvement in the confidence and that improvement caused investment decisions to become positive. As Pakistan banking sector presented stable condition. The country was not very export-dependent either, which is why the global decrease in trade has not had a big impact on Pakistan. Pakistan has the potential to achieve self-sufficiency over a period of time and create a major surplus for agriculture. Banks in Pakistan over the last eight to ten years have been more selective in the client base, apart from the consumer side, because the consumer loans are only 14 percent of the total loans its much lower than other countries. Country had faced some problems in the consumer loans, especially those banks that had become too aggressive in this sector, but the rest whether its corporate or agriculture have remained stable. Growth of Banking Sector: Profitability of the banking sector has been breaking its own record year after year during this ongoing decade. The commercial banking sector in Pakistan regulated by the state bank of Pakistan. SBP introduced several structural changes. Beside higher standards of corporate governance at management and board level, the banks are adhering to SBP prudential regulations, consistent with BIS standards. 36 Commercial Banks (26 local banks and 10 foreign banks) of which 22 were listed on stock exchange. Many merger/acquisition took place. Asset of banking sector registered a increase to reach at Rs 3.7 trillion (2005) with annual growth rate of 15.2% that outpaced economic growth (2005-06) 85 % of banking sector are in private hands. 1.3 Earning And Profitability Strong earnings and profitability profile of banks reflects the ability to support present and future operations. More specifically, this determined the capacity to absorb losses, finance its expansion programs, pay dividend to its shareholders and build up adequate level of capital. There were many different indicators used to serve the purpose, the best and most widely used indicator return on assets (ROA). Earning demanded most visible in case of foreign banks in 1998. The stress on earnings and profitability was expected although the steps taken by the SBP to improve liquidity. Not only liquid assets to total assets ratio turn down sharply, earning assets to total assets also dropped. T-Bill portfolio of banks declined considerably, as that were less compensated. Banks reduced return on deposits to sustain their spread. The financial institutes were not able to contain the decline in ROA due to declining stock and remuneration of their earning assets. CHAPTER 2 LITERATURE REVIEW Research on the determinants of bank profitability has focused on the returns of bank assets and equity, and net interest rate margins. It has traditionally explored the impact on bank performance of bank-specific factors, such as risk, market power, and regulatory costs. Many researchers have focused on the impact of macroeconomic factors on bank performance and profitability. According to Flennery (2000) tested the hypothesis that market rate fluctuations adversely affect commercial bank profits. The finding have responded of revenue and cost of fund to market rate changes then determine whether regulators should take pains to stabilize market conditions. Market rate levels emerge as a prominent influence on intermediary costs and revenues, but the effects of market rate changes effectively cancel one another for most large banks. The research found significant sensitivity to interest rate and it was unstable over the time. By Brick (1994) estimated of market risk, interest rate risk, and foreign exchange risk continues to be unstable. The result of risk differed by bank type and period. As interest rate risk declines, foreign exchange increases; the result suggested that the market continues to reflect changes in the economic and regulatory situation of commercial banks in the pricing of bank stocks. The adverse impact of Interest Rate fluctuations on the profitability of Commercial Banks can be hedge with sound application of modern interest rate risk management theories and tools. Used accounting decompositions, as well as panel regressions, Al-Haschimi (2007) studied the determinants of bank net interest rate margins in 10 Sub Saharan African countries. Author found that credit risk and operating inefficiencies explain most of the variation in net interest margins across the region. Macroeconomic risk has only limited effects on net interest margins in the study. DemirgÃÆ' ¼ÃƒÆ' §-Kunt and Huizinga (1999) used bank level data for 80 countries for the periods 1988-95; analyze how bank characteristics and the overall banking environment affect both interest rate margins and bank returns. In considering both measures, this study provides a decomposition of the income effects of a number of determinants that affect depositor and borrower behavior, as opposed to that of shareholders. Results suggested that macroeconomic and regulatory conditions have a pronounced impact on margins and profitability. Lower market concentration ratios lead to lower margins or profits, while the effect of foreign ownership varies between industrialized and developing countries. Foreign banks have higher margins and profits compared to domestic banks in developing countries, while the opposite holds in developed countries. Hualan Cia and Weing (1992) studied on the effect of interest rate change on stock return and bank profitability, investigated the sensitivity of Canadian banks stock return and the profitability to change in interest rate. Used the data of Canadian banks on both the actual and unexpected change of different time series of interest rate indices, the short, intermediate and long term interest rate have significant negative correlation with bank stock return and profitability. The analysis showed through regression analysis by calculated the ratios of financial statements of banks. This measured the Canadian bank profitability against interest rate changes found that the net interest income and net income were not significantly related to change of interest rate. Flannery (1981) the study examined the relation between the interest rate sensitivity of common stock returns and the maturity composition of the firms nominal contracts. Used a sample of actively traded commercial banks and stock savings and loan associations, common stock returns are found to be correlated with interest rate changes. The co-movement of stock returns and interest rate changes positively related to the size of the maturity difference between the firms nominal assets and liabilities. Facts supported the hypothesis that the effect of nominal interest rate changes on common stock prices related to the maturity composition of a firms net nominal asset holding. For commercial bank and SL stocks, changes in interest rates were found to be significantly related to stock price movements. Also cross-sectional variation in the interest rate sensitivity measure was significantly related to the maturity mismatch of the bank assets and liabilities. Dependable with the nominal contracting hypothesis, the maturity composition of nominal contracts was found to be a significant factor affecting common stock returns. Coyne (1973) Commercial Bank Profitability by Function, The study was concerned with the cost, price and profit by function. It estimated the profit for real estate, installment, commercial and agricultural loans, and investments for banks stratified by size of deposit and the method, that was used to make that determination; the degree to which the average price (interest rate) by function known to the bank and, expressed by a sample period, whether it was equal to or greater than the cost of funds by function; and the degree to which the bank was able to determine its profit by function. The results of the surveyed were representative of the aggregate commercial banking community, the study concluded by the cost of funds estimates to average balance sheet for the Representative Bank of America (RBA).Raw data were obtained from the Federal Reserve Bank of Clevelands functional cost analysis of forty-one banks. Surveyed to the chief executive officer of 510 commercial banks provides insight into the manner in which commercial banks utilize. The author designed to provide a method of cost and profit calculation to the numerous small and medium-sized banks who indicated in response to the authors survey that the author knew little or nothing about the costs by function. The results of the investigation in general and the profitability of RBA in particular representative of the entire banking community, this study was provide help to individual banks as well as policy-making levels of state and national government where questions concerning matters such as usury laws and price (interest rate) controls appear to be taking a disproportionately large amount of time and effort to resolve. Goddard, Molyneux and Wilson (2004) determined the dynamic panel and cross-sectional regressions used to estimate growth and profit equations for a sample of commercial, savings, and co-operative banks from five major European Union countries during the mid-1990s. Methodologically unified the growth and profit strands in the previous empirical literature. Profit was an important prerequisite for future growth. High capital assets ratio tendency grow slowly in banking sector, and growth was connected to macroeconomic conditions. There were few systematic influences on bank growth. The resolution of profit appears higher for savings and co-operative banks than for commercial banks has attempted to unify the growth and profit strands in the literature by examining the performance of European banks during the 1990s. It reported univariate, bivariate, and multivariate versions of a two-equation model, which attempts to capture two-way causality between growth and profit while controlling for a range of other determinants of bank performance. The growth regressions suggested as banks became larger in relative terms, their growth performance tended to improve further. This pattern was strongest for commercial banks. Banks that sustained high capital-assets and liquidity ratios records low profitability. There was some evidence of a positive association between concentration and profitability, but little evidence of a link between bank-level x-inefficiency and profitability. While such patterns continue, concentration in European banking exhibited a natural tendency to increase. There was proof of positive perseverance of growth, although this tends to decline when additional control variables were included in the bivariate and multivariate growth models. The estimated coefficients on the covered profit term in the growth equations lend strong support to the notion that profit is an important sign to future growth. In the profit regressions, there was some variation in the estimated short-run between ownership types and countries. This reflected the fact that savings and co-operative banks are subject to various business and geographical restrictions that smother competition. The study favored th e SCP hypothesis of a positive association between concentration and profitability, but little apparent relationship between bank level inefficiency and profitability. In Latin America, Gelos (2006) studied the determinants of bank interest margins using bank and country level data. Author found that spreads are large because of relatively high interest rates because of macroeconomic risk, including from inflation, less efficient banks, and higher reserve requirements. In a study of United States banks for the period 1989-93, Angbazo (1997) found that net interest margins reflect primarily credit. In addition, there was evidence that net interest margins are positively related to core capital, non-interest bearing reserves, and management quality, but negatively related to liquidity risk. Ho and Saunders (1981) applied the model of to analyze the determinants of interest margins in six countries of the European Union and the US during the period 1988-95. Authors found that macroeconomic volatility and regulations have a significant impact on bank interest rate margins. The results also suggested an important trade-off between ensuring bank solvency, defined by high capital to asset ratios, and lowering the cost of financial services to consumers, as measured by low interest rate margins. Athanasoglou, Delis and Staikouras (2006) applied a dynamic panel data model to study the performance of Greek banks over the period 1985-2001, and find some profit persistence, a result that signal that the market structure not perfectly competitive. The results also showed that the profitability of Greek banks shaped by bank-specific factors and macroeconomic control variables, which were not under the direct control of bank management and industry formation, did not appear to significantly affect profitability. Athanasoglou (2008) studied the profitability behavior of the south eastern European banking industry over the period 1998-2002. The empirical result suggested that the enhancement of bank profitability in those countries requires new standards in risk management and operating efficiency, which, according to the evidence presented in the paper, crucially affect profits. A key result that effect market concentration was positive, while the picture regarding macroeconomic variables was mixed. A number of studies have emphasized the relation between macroeconomic variables and bank risk. Saunders and Allen (2004) surveyed on pro-cyclicality in operational, credit, and market risk exposures. Such cyclical effects mainly results from systematic risk originate from common macroeconomic influences or from interdependencies across firms as financial markets and institutions consolidate internationally. It ultimately exacerbates business cycle fluctuations due to adverse effects on bank lending capacity. Using equity returns data over the period 1973-2003, Allen and Bali (2004) examined the disastrous risk of financial institutions. Results suggested evidence of pro-cyclicality in both tragic and operational risk measurements, implying that macroeconomic, systematic, and environmental factors play a considerable role in determining the risk and returns of financial institutions. Pi and Timme (1993) investigated the relationship of concentration of decision management and control in one person on the cost efficiency level of the bank and return on assets. On the basis of the study found that the banks whose Chairman and CEO be same person had significantly less efficiency than those banks that possessed not similar governance structure and show that performance was affected by top management structure. Isik and Hassan (2003) estimated cost, allocate, technical, pure technical and scale efficiency of Turkish banking industry from 1988 to 1996. This study considered capital, loan able funds as bank short-term loans, long-term loans, risk adjustment off balance sheet items and other earning assets as output of bank. Thistle, McLeod and Conrad (1989) have found that (a) balance sheet composition depends on both the level and change in interest rates , (b) banks response to changes in interest rates in different, depending on whether rates are rising or falling. Authors determined the relation between banks portfolio of assets and liabilities and interest rate was stable. Several possible caused of instability. The econometric techniques employed allow for continuous change in the structure of the empirical model. The study found that the portfolio-interest rate relationship depends on the level of interest rates and exogenous assets, as well as their rate and direction of change Samy Ben Naceur (2005) investigated the impact of banks characteristics, financial structure and macroeconomic indicators on banks net interest margins and profitability in the Tunisian banking industry for the 1980-2000 periods. The study found individual bank characteristics explained a substantial part of the within-country variation in bank interest margins and profitability. High interest margin and profitability tend to be associated with banks that hold a relatively high amount of capital, and with large overheads. The study found that the inflation had a positive force for net interest margin; while economic growth has no incidence. Another factor was financial structure and its impact on banks interest margin and profitability; found that concentration be less beneficial to the Tunisian commercial banks than competition whereas for stock market development had a positive effect on bank profitability. This reflected the corresponding between bank and stock market growth. The study found that the disintermediation of the Tunisian financial system was favorable to the banking sector profitability. Some authors examined on banking of south European region, the determinants of bank interest margins adopt two alternative modeling frameworks used dealership approach and a micro-model of the banking-firm approach, study found bank as a dynamic dealer, setting interest rates on loans and deposits to balance the asymmetric arrival of loan demands and deposit supplies by Staikouras. The bank interest margins were shown to be fees charged by banks for the provision of liquidity. The alternative approach was the micro-model of the banking firm, the study found the banking firm in a static way, setting where demands and supplies of deposits and loans simultaneously clear both markets. Choi, Elyasiani and Kopecky (1992) estimated a multi-index model that considered market risk, interest sensitivity, and exchange rate risk of commercial bank stock returns. Dummy models were used to separate the period of pre- and post-October 1979 and to split the results attributable to money center banks from other banks. A significant exchange rate effect occurs for money center banks after October 1979, while interest sensitivity was stronger before October 1979. The exchange rate effect was attributing to raised hedge foreign loan exposure of money center banks. The bank profitability typically measured by the return on assets (ROA) and/or the return on equity, usually expressed as a function of internal and external determinants. Internal determinant factors that were mainly influenced by a banks management decisions and policy objectives. Such profitability determinants are the level of liquidity, provisioning policy, capital adequacy, expenses management, and bank size. On the other hand, the external determinants, both industry and macroeconomic related, also known variables that reflect the economic and legal environments where the financial institution operates. By Bourke (1989) determined; Liquidity risk, arising from the possible inability of a bank to accommodate. Decreased in liabilities or to fund increases on the assets side of the balance sheet, considered an important determinant of bank profitability. The loans market, especially credit to households and firms, risky and has a greater expected return than other bank assets, such as government securities. That expected a positive relationship between liquidity and profitability. Duca and McLaughlin (1990) studied that variations in bank profitability were largely attributable to variations in credit risk, since increased exposure to credit risk normally associated with decreased firm profitability. Miller and Noulas (1997) suggested that the more financial institutions are exposed to high risk loans, the higher the accumulation of unpaid loans and the lower the profitability. Even though leverage (capitalization) has been demonstrated to be important in explaining the performance of financial institutions, its impact on bank profitability was ambiguous. As lower capital ratios suggest a relatively risky position, one might expect a negative coefficient on this variable. Molyneux and Thornton (1992) observed a positive relationship, suggesting that high profits earned by firms be appropriated in the form of higher payroll expenditures paid to more productive human capital. It should be appealing to identify the dominant effect, in a developing banking environment like Malaysia. Authors used Bank size to capture potential economies or diseconomies of scale in the banking sector. The variable controls for cost differences and product and risk diversification according to the size of the financial institution. The first factor could lead to a positive relationship between size and bank profitability were significant economies of scale, while the second factor negative one was increased diversification leads to lower credit risk and lower returns. Berger, Hanweck, Humphery (1987) discussed that marginal cost savings can be achieved by increasing the size of the banking firm, especially as markets develop. Eichengreen and Gibson (2001) suggested that the effect of a growing banks size on profitability may be positive up to a certain limit. Beyond the point, the effect of size was negative due to bureaucratic and other reasons. Bank profitability be sensitive to macroeconomic conditions despite the trend in the industry towards greater geographic diversification and larger use of financial engineering techniques to manage risk associated with business cycle forecasting. Generally, higher economic growth encourages bank to lend more and permits them to charge higher margins, as well as improving the quality of their assets. 2.1 The Determinants of Bank Performance: Studies on the determinants of banks interest margin and profitability have focused on single country sides and a panel of countries. 2.1a Single country studies As most of the studies on bank performance are conducted in the US and emerging markets. Neeley and Wheelock (1997) explored the profitability of a sample of insured commercial banks in the US for the 1980-1995 periods. Authors found that bank performance positively related to the annual percentage changes in the states per capita income. The main Studies on the determinants of banks performance in emerging countries were carried out in Colombia Barajas et al. (1999) document significant effects of financial liberalization on banks interest margins for the Colombian case. Although the overall spread has not declined after financial reform, the relevance of the different factors behind the bank spreads were affected by such measures. Another change linked with the liberalization process was the increase of the coefficient of loan quality after the liberalization. Afanasieff, Lhacer and Nakane (2002) make used of panel data techniques to uncover the main determinants of the bank interest spreads in Brazil. Ben Naceur and Goaied (2001) investigated the determinants of the Tunisian banks performances during the period 1980-1995. The research indicated that the best performing banks were those who had struggled to improve labor and capital productivity, maintained a high level of deposit accounts relative to their assets and had been able to reinforce their equity. Guru, Staunton and Balashanmugam (2002) attempted to identify the determinants of successful deposit banks in order to provide practical guide for improved profitability performance of these institutions. The study was based on a sample of 17 Malaysian commercial banks over the 1986-1995. The profitability determinants were divided in two main categories, internal determinants (liquidity, capital adequacy and expenses management) and the external determinants (ownership, firm size and external economic conditions). The finding of that study revealed that efficient expenses management was one of the most significant in explaining high bank profitability. Among the macro indicators, high interest ratio was associated with low bank profitability and inflation was found to have a positive effect on bank performance. 2.1b Panel country studies The panel country studies were focused on European companies and developed and developing countries. Molyneux and Thornton (1992) were the first to explore thoroughly the determinants of bank profitability on a set of countries. Authors used sample of 18 European countries during the 1986-1989. The finding represented a significant positive association between the return on equity and the level of interest rates in each country, bank concentration, and government ownership. Abreu and Mendes (2002) investigated the determinants of banks interest margins and profitability for some European countries in the last decade. The authors reported that well capitalized banks face lower expected bankruptcy costs and advantages translate into better profitability. Although with a negative sign in all regressions, the unemployment rate was relevant in explaining bank profitability. Bashir (2000) examined the determinants of Islamic banks performance across eight Middle Eastern countries for 1993-1998. A number of internal and external factors were used to predict profitability and efficiencies. Controlling for macroeconomic environment, financial market situation and taxation, the results showed that higher leverage and large loans to asset ratios, lead to higher profitability. The author reported in his study that foreign-owned banks are more profitable that the domestic. The result also found the evidence that taxation impacts negatively bank profitability. Final result of study was that macroeconomic setting and stock market development have a positive impact on profitability. DemerguÃÆ' §-Kunt and Huizingha (1999) examined the determinants of bank interest margins and profitability using a bank level data for 80 countries in the 1988- 1995 period. The set of variables included several factors accounting for bank characteristics, macroeconomic conditions, taxation, regulations, financial structure, and legal indicators. The study reported that a larger ratio of bank assets to GDP and a lower market concentration ratio lead to lower margins and profits. Foreign banks have higher margins and profits than domestic banks on developing countries, while the opposite prevail in developed countries. DemerguÃÆ' §-Kunt and Huizingha (2001) presented evidence on the impact of financial development and structure on bank profitability using bank level data for a large number of developed and developing countries over the 1990-1997 period. The study found that financial development has a very important impact on bank performance. It reported that higher bank development was related to lower bank performance. Stock market development on the other hand, leads to increased profits and margins for banks especially at lower levels of financial development, indicating complementarities between bank and stock market. CHAPTER 3 THEORETICAL FRAMEWORK AND HYPOTHESIS The interest rate assummed to be one of the most important factors that affect commercial banks profitability. The issue which deals in the study was the affect of market interest rate fluactuation has adversly related to commercial bank profitability. This thesis study bring opportunity to established a relationship between fluctuations in interest rates and the performance of commercial banks in Pakistan during the period of 2004- 2008. The main purpose of this study was to determine the implication of fluctuations in market interest rates on the profitability of commercial banks in Pakistan. This study provide Major causes of interest rate fluctuations The extent to which commercial banks are set to manage interest rate related risks. Major causes of Interest Rate Fluctuation were unstable government Policies, Unstable Economic Environment, unavailability of long-term funds, Inflation. The factors that affect the commercial bank profitability were significant mismatch in the maturity profiles of Assets and Liabilities, Frequent Interest Rate Fluctuations, under capitalization of banks, Poor Collateral of credits. Pakistans financial sector included nationalized, foreign, and private banks; and Non-banking Financial Institutions (NBFIs) which include Development Finance Institutions (DFIs), Investment Banks, leasing companies, modarabas, and housing finance companies. Scheduled Banks know as also commercial bank regulated by the State Bank of Pakistan regulated through different wings, and subject to different SBP regulatory requirements such as capital and liquidity reserve requirements. Factors that affect the profitability of Commercial Banks are both Endogenous and Exogenous. Endogenous factors are within the Control of Management such as quality of man Determinants of Debt Maturity Structures in Pakistan Determinants of Debt Maturity Structures in Pakistan CHAPTER 1 Rapid changes in financial service industries make it essential to determine the profitability of financial institution. Banks plays a key role in financial market of a country and for this its very important to evaluate that bank operate in efficient manner also what are the factors which affect the profitability of banks. A bank generates profit from the differential between the level of interest it pays for deposits and other sources of funds, and the level of interest it charges in its lending activities. Historically, profitability from lending activities has been dependent on the needs and strengths of customers. In modern era, investors have demanded a more stable revenue stream and banks have therefore placed more emphasis on transaction fees, primarily loan fees but also included service charges on an array of deposit activities and other services (international banking, foreign exchange, insurance, investments, wire transfers, etc.). Lending activities provide the huge size of income to commercial banks. In the past 10 years banks have taken many measures to ensure that bank remain profitable while responding to increasingly changing market conditions. Financial sector of Pakistan structured on Scheduled and Unscheduled Banks. Scheduled Banks are regulated by the State Bank of Pakistans Regulations, through different wings, and are subject to different SBP regulatory requirements such as capital and liquidity reserve requirements. The financial division analysts were projected higher profitability in 2008. That projection made possible because State Bank of Pakistan has raised its discount rate in which the banks can invest to earn a good return. The rising lending rates contributed considerably to ensuring an increased profitability acknowledged by State bank of Pakistan. Factors that affect the profitability of Commercial Banks are both Endogenous and Exogenous. Endogenous factors are within the Control of Management such as quality of management and its policies, efficiency of management in generating revenues and controlling costs, bank capitalization and location. Exogenous factors are outside management control, especially macro economic indices such as Interest rates, Exchange rates, Inflation, and other regulatory and market constraints. The banking sector has been a source of stability for this country, because as you have seen in many countries, the banking sector has weakened and outright nationalization has taken place in some countries. However, the reforms that have taken place in Pakistan banking sector over the past 8 to 10 years have given stability and strength to this sector. There are some ratios, by which can measure the strength of a banking sector, and the most important amongst those ratios is Capital Adequacy; our countrys average capital adequacy 8 percent some banks have less or some banks have more. Macro stability taken some time to trickle down was not something that happens over a month or two, because macro stability causes improvement in the confidence and that improvement caused investment decisions to become positive. As Pakistan banking sector presented stable condition. The country was not very export-dependent either, which is why the global decrease in trade has not had a big impact on Pakistan. Pakistan has the potential to achieve self-sufficiency over a period of time and create a major surplus for agriculture. Banks in Pakistan over the last eight to ten years have been more selective in the client base, apart from the consumer side, because the consumer loans are only 14 percent of the total loans its much lower than other countries. Country had faced some problems in the consumer loans, especially those banks that had become too aggressive in this sector, but the rest whether its corporate or agriculture have remained stable. Growth of Banking Sector: Profitability of the banking sector has been breaking its own record year after year during this ongoing decade. The commercial banking sector in Pakistan regulated by the state bank of Pakistan. SBP introduced several structural changes. Beside higher standards of corporate governance at management and board level, the banks are adhering to SBP prudential regulations, consistent with BIS standards. 36 Commercial Banks (26 local banks and 10 foreign banks) of which 22 were listed on stock exchange. Many merger/acquisition took place. Asset of banking sector registered a increase to reach at Rs 3.7 trillion (2005) with annual growth rate of 15.2% that outpaced economic growth (2005-06) 85 % of banking sector are in private hands. 1.3 Earning And Profitability Strong earnings and profitability profile of banks reflects the ability to support present and future operations. More specifically, this determined the capacity to absorb losses, finance its expansion programs, pay dividend to its shareholders and build up adequate level of capital. There were many different indicators used to serve the purpose, the best and most widely used indicator return on assets (ROA). Earning demanded most visible in case of foreign banks in 1998. The stress on earnings and profitability was expected although the steps taken by the SBP to improve liquidity. Not only liquid assets to total assets ratio turn down sharply, earning assets to total assets also dropped. T-Bill portfolio of banks declined considerably, as that were less compensated. Banks reduced return on deposits to sustain their spread. The financial institutes were not able to contain the decline in ROA due to declining stock and remuneration of their earning assets. CHAPTER 2 LITERATURE REVIEW Research on the determinants of bank profitability has focused on the returns of bank assets and equity, and net interest rate margins. It has traditionally explored the impact on bank performance of bank-specific factors, such as risk, market power, and regulatory costs. Many researchers have focused on the impact of macroeconomic factors on bank performance and profitability. According to Flennery (2000) tested the hypothesis that market rate fluctuations adversely affect commercial bank profits. The finding have responded of revenue and cost of fund to market rate changes then determine whether regulators should take pains to stabilize market conditions. Market rate levels emerge as a prominent influence on intermediary costs and revenues, but the effects of market rate changes effectively cancel one another for most large banks. The research found significant sensitivity to interest rate and it was unstable over the time. By Brick (1994) estimated of market risk, interest rate risk, and foreign exchange risk continues to be unstable. The result of risk differed by bank type and period. As interest rate risk declines, foreign exchange increases; the result suggested that the market continues to reflect changes in the economic and regulatory situation of commercial banks in the pricing of bank stocks. The adverse impact of Interest Rate fluctuations on the profitability of Commercial Banks can be hedge with sound application of modern interest rate risk management theories and tools. Used accounting decompositions, as well as panel regressions, Al-Haschimi (2007) studied the determinants of bank net interest rate margins in 10 Sub Saharan African countries. Author found that credit risk and operating inefficiencies explain most of the variation in net interest margins across the region. Macroeconomic risk has only limited effects on net interest margins in the study. DemirgÃÆ' ¼ÃƒÆ' §-Kunt and Huizinga (1999) used bank level data for 80 countries for the periods 1988-95; analyze how bank characteristics and the overall banking environment affect both interest rate margins and bank returns. In considering both measures, this study provides a decomposition of the income effects of a number of determinants that affect depositor and borrower behavior, as opposed to that of shareholders. Results suggested that macroeconomic and regulatory conditions have a pronounced impact on margins and profitability. Lower market concentration ratios lead to lower margins or profits, while the effect of foreign ownership varies between industrialized and developing countries. Foreign banks have higher margins and profits compared to domestic banks in developing countries, while the opposite holds in developed countries. Hualan Cia and Weing (1992) studied on the effect of interest rate change on stock return and bank profitability, investigated the sensitivity of Canadian banks stock return and the profitability to change in interest rate. Used the data of Canadian banks on both the actual and unexpected change of different time series of interest rate indices, the short, intermediate and long term interest rate have significant negative correlation with bank stock return and profitability. The analysis showed through regression analysis by calculated the ratios of financial statements of banks. This measured the Canadian bank profitability against interest rate changes found that the net interest income and net income were not significantly related to change of interest rate. Flannery (1981) the study examined the relation between the interest rate sensitivity of common stock returns and the maturity composition of the firms nominal contracts. Used a sample of actively traded commercial banks and stock savings and loan associations, common stock returns are found to be correlated with interest rate changes. The co-movement of stock returns and interest rate changes positively related to the size of the maturity difference between the firms nominal assets and liabilities. Facts supported the hypothesis that the effect of nominal interest rate changes on common stock prices related to the maturity composition of a firms net nominal asset holding. For commercial bank and SL stocks, changes in interest rates were found to be significantly related to stock price movements. Also cross-sectional variation in the interest rate sensitivity measure was significantly related to the maturity mismatch of the bank assets and liabilities. Dependable with the nominal contracting hypothesis, the maturity composition of nominal contracts was found to be a significant factor affecting common stock returns. Coyne (1973) Commercial Bank Profitability by Function, The study was concerned with the cost, price and profit by function. It estimated the profit for real estate, installment, commercial and agricultural loans, and investments for banks stratified by size of deposit and the method, that was used to make that determination; the degree to which the average price (interest rate) by function known to the bank and, expressed by a sample period, whether it was equal to or greater than the cost of funds by function; and the degree to which the bank was able to determine its profit by function. The results of the surveyed were representative of the aggregate commercial banking community, the study concluded by the cost of funds estimates to average balance sheet for the Representative Bank of America (RBA).Raw data were obtained from the Federal Reserve Bank of Clevelands functional cost analysis of forty-one banks. Surveyed to the chief executive officer of 510 commercial banks provides insight into the manner in which commercial banks utilize. The author designed to provide a method of cost and profit calculation to the numerous small and medium-sized banks who indicated in response to the authors survey that the author knew little or nothing about the costs by function. The results of the investigation in general and the profitability of RBA in particular representative of the entire banking community, this study was provide help to individual banks as well as policy-making levels of state and national government where questions concerning matters such as usury laws and price (interest rate) controls appear to be taking a disproportionately large amount of time and effort to resolve. Goddard, Molyneux and Wilson (2004) determined the dynamic panel and cross-sectional regressions used to estimate growth and profit equations for a sample of commercial, savings, and co-operative banks from five major European Union countries during the mid-1990s. Methodologically unified the growth and profit strands in the previous empirical literature. Profit was an important prerequisite for future growth. High capital assets ratio tendency grow slowly in banking sector, and growth was connected to macroeconomic conditions. There were few systematic influences on bank growth. The resolution of profit appears higher for savings and co-operative banks than for commercial banks has attempted to unify the growth and profit strands in the literature by examining the performance of European banks during the 1990s. It reported univariate, bivariate, and multivariate versions of a two-equation model, which attempts to capture two-way causality between growth and profit while controlling for a range of other determinants of bank performance. The growth regressions suggested as banks became larger in relative terms, their growth performance tended to improve further. This pattern was strongest for commercial banks. Banks that sustained high capital-assets and liquidity ratios records low profitability. There was some evidence of a positive association between concentration and profitability, but little evidence of a link between bank-level x-inefficiency and profitability. While such patterns continue, concentration in European banking exhibited a natural tendency to increase. There was proof of positive perseverance of growth, although this tends to decline when additional control variables were included in the bivariate and multivariate growth models. The estimated coefficients on the covered profit term in the growth equations lend strong support to the notion that profit is an important sign to future growth. In the profit regressions, there was some variation in the estimated short-run between ownership types and countries. This reflected the fact that savings and co-operative banks are subject to various business and geographical restrictions that smother competition. The study favored th e SCP hypothesis of a positive association between concentration and profitability, but little apparent relationship between bank level inefficiency and profitability. In Latin America, Gelos (2006) studied the determinants of bank interest margins using bank and country level data. Author found that spreads are large because of relatively high interest rates because of macroeconomic risk, including from inflation, less efficient banks, and higher reserve requirements. In a study of United States banks for the period 1989-93, Angbazo (1997) found that net interest margins reflect primarily credit. In addition, there was evidence that net interest margins are positively related to core capital, non-interest bearing reserves, and management quality, but negatively related to liquidity risk. Ho and Saunders (1981) applied the model of to analyze the determinants of interest margins in six countries of the European Union and the US during the period 1988-95. Authors found that macroeconomic volatility and regulations have a significant impact on bank interest rate margins. The results also suggested an important trade-off between ensuring bank solvency, defined by high capital to asset ratios, and lowering the cost of financial services to consumers, as measured by low interest rate margins. Athanasoglou, Delis and Staikouras (2006) applied a dynamic panel data model to study the performance of Greek banks over the period 1985-2001, and find some profit persistence, a result that signal that the market structure not perfectly competitive. The results also showed that the profitability of Greek banks shaped by bank-specific factors and macroeconomic control variables, which were not under the direct control of bank management and industry formation, did not appear to significantly affect profitability. Athanasoglou (2008) studied the profitability behavior of the south eastern European banking industry over the period 1998-2002. The empirical result suggested that the enhancement of bank profitability in those countries requires new standards in risk management and operating efficiency, which, according to the evidence presented in the paper, crucially affect profits. A key result that effect market concentration was positive, while the picture regarding macroeconomic variables was mixed. A number of studies have emphasized the relation between macroeconomic variables and bank risk. Saunders and Allen (2004) surveyed on pro-cyclicality in operational, credit, and market risk exposures. Such cyclical effects mainly results from systematic risk originate from common macroeconomic influences or from interdependencies across firms as financial markets and institutions consolidate internationally. It ultimately exacerbates business cycle fluctuations due to adverse effects on bank lending capacity. Using equity returns data over the period 1973-2003, Allen and Bali (2004) examined the disastrous risk of financial institutions. Results suggested evidence of pro-cyclicality in both tragic and operational risk measurements, implying that macroeconomic, systematic, and environmental factors play a considerable role in determining the risk and returns of financial institutions. Pi and Timme (1993) investigated the relationship of concentration of decision management and control in one person on the cost efficiency level of the bank and return on assets. On the basis of the study found that the banks whose Chairman and CEO be same person had significantly less efficiency than those banks that possessed not similar governance structure and show that performance was affected by top management structure. Isik and Hassan (2003) estimated cost, allocate, technical, pure technical and scale efficiency of Turkish banking industry from 1988 to 1996. This study considered capital, loan able funds as bank short-term loans, long-term loans, risk adjustment off balance sheet items and other earning assets as output of bank. Thistle, McLeod and Conrad (1989) have found that (a) balance sheet composition depends on both the level and change in interest rates , (b) banks response to changes in interest rates in different, depending on whether rates are rising or falling. Authors determined the relation between banks portfolio of assets and liabilities and interest rate was stable. Several possible caused of instability. The econometric techniques employed allow for continuous change in the structure of the empirical model. The study found that the portfolio-interest rate relationship depends on the level of interest rates and exogenous assets, as well as their rate and direction of change Samy Ben Naceur (2005) investigated the impact of banks characteristics, financial structure and macroeconomic indicators on banks net interest margins and profitability in the Tunisian banking industry for the 1980-2000 periods. The study found individual bank characteristics explained a substantial part of the within-country variation in bank interest margins and profitability. High interest margin and profitability tend to be associated with banks that hold a relatively high amount of capital, and with large overheads. The study found that the inflation had a positive force for net interest margin; while economic growth has no incidence. Another factor was financial structure and its impact on banks interest margin and profitability; found that concentration be less beneficial to the Tunisian commercial banks than competition whereas for stock market development had a positive effect on bank profitability. This reflected the corresponding between bank and stock market growth. The study found that the disintermediation of the Tunisian financial system was favorable to the banking sector profitability. Some authors examined on banking of south European region, the determinants of bank interest margins adopt two alternative modeling frameworks used dealership approach and a micro-model of the banking-firm approach, study found bank as a dynamic dealer, setting interest rates on loans and deposits to balance the asymmetric arrival of loan demands and deposit supplies by Staikouras. The bank interest margins were shown to be fees charged by banks for the provision of liquidity. The alternative approach was the micro-model of the banking firm, the study found the banking firm in a static way, setting where demands and supplies of deposits and loans simultaneously clear both markets. Choi, Elyasiani and Kopecky (1992) estimated a multi-index model that considered market risk, interest sensitivity, and exchange rate risk of commercial bank stock returns. Dummy models were used to separate the period of pre- and post-October 1979 and to split the results attributable to money center banks from other banks. A significant exchange rate effect occurs for money center banks after October 1979, while interest sensitivity was stronger before October 1979. The exchange rate effect was attributing to raised hedge foreign loan exposure of money center banks. The bank profitability typically measured by the return on assets (ROA) and/or the return on equity, usually expressed as a function of internal and external determinants. Internal determinant factors that were mainly influenced by a banks management decisions and policy objectives. Such profitability determinants are the level of liquidity, provisioning policy, capital adequacy, expenses management, and bank size. On the other hand, the external determinants, both industry and macroeconomic related, also known variables that reflect the economic and legal environments where the financial institution operates. By Bourke (1989) determined; Liquidity risk, arising from the possible inability of a bank to accommodate. Decreased in liabilities or to fund increases on the assets side of the balance sheet, considered an important determinant of bank profitability. The loans market, especially credit to households and firms, risky and has a greater expected return than other bank assets, such as government securities. That expected a positive relationship between liquidity and profitability. Duca and McLaughlin (1990) studied that variations in bank profitability were largely attributable to variations in credit risk, since increased exposure to credit risk normally associated with decreased firm profitability. Miller and Noulas (1997) suggested that the more financial institutions are exposed to high risk loans, the higher the accumulation of unpaid loans and the lower the profitability. Even though leverage (capitalization) has been demonstrated to be important in explaining the performance of financial institutions, its impact on bank profitability was ambiguous. As lower capital ratios suggest a relatively risky position, one might expect a negative coefficient on this variable. Molyneux and Thornton (1992) observed a positive relationship, suggesting that high profits earned by firms be appropriated in the form of higher payroll expenditures paid to more productive human capital. It should be appealing to identify the dominant effect, in a developing banking environment like Malaysia. Authors used Bank size to capture potential economies or diseconomies of scale in the banking sector. The variable controls for cost differences and product and risk diversification according to the size of the financial institution. The first factor could lead to a positive relationship between size and bank profitability were significant economies of scale, while the second factor negative one was increased diversification leads to lower credit risk and lower returns. Berger, Hanweck, Humphery (1987) discussed that marginal cost savings can be achieved by increasing the size of the banking firm, especially as markets develop. Eichengreen and Gibson (2001) suggested that the effect of a growing banks size on profitability may be positive up to a certain limit. Beyond the point, the effect of size was negative due to bureaucratic and other reasons. Bank profitability be sensitive to macroeconomic conditions despite the trend in the industry towards greater geographic diversification and larger use of financial engineering techniques to manage risk associated with business cycle forecasting. Generally, higher economic growth encourages bank to lend more and permits them to charge higher margins, as well as improving the quality of their assets. 2.1 The Determinants of Bank Performance: Studies on the determinants of banks interest margin and profitability have focused on single country sides and a panel of countries. 2.1a Single country studies As most of the studies on bank performance are conducted in the US and emerging markets. Neeley and Wheelock (1997) explored the profitability of a sample of insured commercial banks in the US for the 1980-1995 periods. Authors found that bank performance positively related to the annual percentage changes in the states per capita income. The main Studies on the determinants of banks performance in emerging countries were carried out in Colombia Barajas et al. (1999) document significant effects of financial liberalization on banks interest margins for the Colombian case. Although the overall spread has not declined after financial reform, the relevance of the different factors behind the bank spreads were affected by such measures. Another change linked with the liberalization process was the increase of the coefficient of loan quality after the liberalization. Afanasieff, Lhacer and Nakane (2002) make used of panel data techniques to uncover the main determinants of the bank interest spreads in Brazil. Ben Naceur and Goaied (2001) investigated the determinants of the Tunisian banks performances during the period 1980-1995. The research indicated that the best performing banks were those who had struggled to improve labor and capital productivity, maintained a high level of deposit accounts relative to their assets and had been able to reinforce their equity. Guru, Staunton and Balashanmugam (2002) attempted to identify the determinants of successful deposit banks in order to provide practical guide for improved profitability performance of these institutions. The study was based on a sample of 17 Malaysian commercial banks over the 1986-1995. The profitability determinants were divided in two main categories, internal determinants (liquidity, capital adequacy and expenses management) and the external determinants (ownership, firm size and external economic conditions). The finding of that study revealed that efficient expenses management was one of the most significant in explaining high bank profitability. Among the macro indicators, high interest ratio was associated with low bank profitability and inflation was found to have a positive effect on bank performance. 2.1b Panel country studies The panel country studies were focused on European companies and developed and developing countries. Molyneux and Thornton (1992) were the first to explore thoroughly the determinants of bank profitability on a set of countries. Authors used sample of 18 European countries during the 1986-1989. The finding represented a significant positive association between the return on equity and the level of interest rates in each country, bank concentration, and government ownership. Abreu and Mendes (2002) investigated the determinants of banks interest margins and profitability for some European countries in the last decade. The authors reported that well capitalized banks face lower expected bankruptcy costs and advantages translate into better profitability. Although with a negative sign in all regressions, the unemployment rate was relevant in explaining bank profitability. Bashir (2000) examined the determinants of Islamic banks performance across eight Middle Eastern countries for 1993-1998. A number of internal and external factors were used to predict profitability and efficiencies. Controlling for macroeconomic environment, financial market situation and taxation, the results showed that higher leverage and large loans to asset ratios, lead to higher profitability. The author reported in his study that foreign-owned banks are more profitable that the domestic. The result also found the evidence that taxation impacts negatively bank profitability. Final result of study was that macroeconomic setting and stock market development have a positive impact on profitability. DemerguÃÆ' §-Kunt and Huizingha (1999) examined the determinants of bank interest margins and profitability using a bank level data for 80 countries in the 1988- 1995 period. The set of variables included several factors accounting for bank characteristics, macroeconomic conditions, taxation, regulations, financial structure, and legal indicators. The study reported that a larger ratio of bank assets to GDP and a lower market concentration ratio lead to lower margins and profits. Foreign banks have higher margins and profits than domestic banks on developing countries, while the opposite prevail in developed countries. DemerguÃÆ' §-Kunt and Huizingha (2001) presented evidence on the impact of financial development and structure on bank profitability using bank level data for a large number of developed and developing countries over the 1990-1997 period. The study found that financial development has a very important impact on bank performance. It reported that higher bank development was related to lower bank performance. Stock market development on the other hand, leads to increased profits and margins for banks especially at lower levels of financial development, indicating complementarities between bank and stock market. CHAPTER 3 THEORETICAL FRAMEWORK AND HYPOTHESIS The interest rate assummed to be one of the most important factors that affect commercial banks profitability. The issue which deals in the study was the affect of market interest rate fluactuation has adversly related to commercial bank profitability. This thesis study bring opportunity to established a relationship between fluctuations in interest rates and the performance of commercial banks in Pakistan during the period of 2004- 2008. The main purpose of this study was to determine the implication of fluctuations in market interest rates on the profitability of commercial banks in Pakistan. This study provide Major causes of interest rate fluctuations The extent to which commercial banks are set to manage interest rate related risks. Major causes of Interest Rate Fluctuation were unstable government Policies, Unstable Economic Environment, unavailability of long-term funds, Inflation. The factors that affect the commercial bank profitability were significant mismatch in the maturity profiles of Assets and Liabilities, Frequent Interest Rate Fluctuations, under capitalization of banks, Poor Collateral of credits. Pakistans financial sector included nationalized, foreign, and private banks; and Non-banking Financial Institutions (NBFIs) which include Development Finance Institutions (DFIs), Investment Banks, leasing companies, modarabas, and housing finance companies. Scheduled Banks know as also commercial bank regulated by the State Bank of Pakistan regulated through different wings, and subject to different SBP regulatory requirements such as capital and liquidity reserve requirements. Factors that affect the profitability of Commercial Banks are both Endogenous and Exogenous. Endogenous factors are within the Control of Management such as quality of man