Comparison of Ground Support Systems Essay Example | Topics and Well Written Essays - 1000 words

Comparison of Ground Support Systems - Essay Example This essay discusses ground support that has been employed in underground mines in order to ascertain the security and protection of the personnel as well as the equipment working there as well as to fulfill the desired engineering purpose of the aperture. The rockmass around an aperture may be considerably fragmented and fractured as a result of the combination of stresses, discontinuities and also, because of the blasting activities for the production or development purposes. Also, pieces of rock, that may range from a few grams to many tones in mass, may fall or slough into the openings of the mine as a result of gravity. Moreover, rock can be violently dumped into the mine openings because of the seismic bursting. The support methods have been developed in order to avoid the falling or ejection of the rock into the mine openings. Screen mesh, resin or mechanical rock bolts, and plain or reinforced shotcrete have been found to be the indispensable features of the production cycle of mining in Canada for year and have improved in the safety of the operator and the equipment along with enhancing the recovery of the minerals. Beginning from the late 1980's, Urylon Plastics Inc. (previously Guelph, Ontario) and in the present times, Mine guard Canada , in association with the Department of Mining Engineering at Queen's University and the MIROC - Mining Industry Research Organization of Canada created an innovative and new rock support system that is known as MIROC MineguardTM. MIROC Mineguard comprises of a thin, durable and highly flexible 2-component polyurethane spray-on liner. The RockguardTM is another polyurethane/polyurea hybrid liner, which has been developed by Futura Coatings Incorporation in Missouri, USA, has become available recently. MineguardTM and Rockguardâ„ ¢ are considered as the best forms of spray-on liners and both of them will referred as polymer liner support in this study. The other spray-on products under testing and development are Master Builder’s epoxy-based product and Fosroc’s latex-based Tekflex product. All systems have been demonstrated not only in the laboratory but also in the underground so that they may work in a various ways. The technical aspects and properties of every support system have been documented well in the literature. Each support system has some technical constraints and benefits, but they will not be included in detail in this study. Although being technically sound with respect to engineering concepts, however, it is also vital to take in to account that whether it is also cost effective or not, and that how each method

Cases Analysis Part 3 Coursework Example | Topics and Well Written Essays - 1250 words

Cases Analysis Part 3 - Coursework Example In this specific case, stating that if Williams ever missed a payment, the store could repossess all the items that Williams had ever bought from Walker, regardless of how long ago they were purchased is a strong example of unconscionable clause. If the clause referred only to that one purchase to which the missed payment referred, it would not be considered unreasonable and unfair. I believe that in this case, the bargaining power of the parties was definitely unequal, placing the consumer in a disadvantaged position. Therefore, Williams should ask the Court not to enforce this specific clause, based on its unconscionability and unfairness. Moreover, in multiple previous cases, it was held that a court can refuse to enforce a clause, if it considers it unconscionable. For example, a leading case in this is Scott v. United States2, where it was held by the Supreme Court that: â€Å"If a contract be unreasonable and unconscionable, but not void for fraud, a court of law will give to the party who sues for its breach damages, not according to its letter, but only such as he is equitably entitled to.† Also, the Uniform Commercial Code provides exact stipulations on this matter in paragraph 2-302, where it stipulates that: â€Å"(1) If the court as a matter of law finds the contract or any clause of the contract to have been unconscionable at the time it was made the court may refuse to enforce the contract, or it may enforce the remainder of the contract without the unconscionable clause, or it may so limit the application of any unconscionable clause as to avoid any unconscionable result. (2) When it is claimed or appears to the court that the contract or any clause thereof may be unconscionable the parties shall be afforded a reasonable opportunity to present evidence as to its commercial setting, purpose and effect to aid the court in making the determination. â€Å"3 This means that by law, Courts are entitled to refuse to enforce a contract or a clau se, if it finds it unconscionable, which is the case of Williams. CHAPTER 12 CASE 3 There are several issues that Horizon House Microwave Inc. can use in its favor. First of all, it refers to Hall’s reasons to getting a job for HHM. If Hall decided to become an employee at HHM only because of the promise he was made by Bazzy, it is one thing. BUT, if Hall had been working for HHM for a period prior to the promise, the situation changes. This means that while being employed at HHM, Hall received a full salary package and he was actually fairly remunerated for his work and he suffered no material loss for not purchasing company stocks. Therefore, no material damages can be claimed by Hall from HHM. Another important issue that could be used by Bazzy to refuse to sell stock to Hall as agreed may be the lack of a written agreement on this, that would confirm Bazzy’s intention to be bound to the verbal promise he has made. I would advise Bazzy to refer to the General Statut es, specifically  § 42a-8-319 where it is expressly stipulated that "A contract for the sale of securities is not enforceable by way of action or defense unless (a) there is some writing signed by the party against whom enforcement is sought or by his authorized agent or broker sufficient to indicate that a contract has been made for sale of a stated quantity of described securities at a defined or stated price; or (b) delivery of the security has been accepted or payment has been made but the contract is

Effect of Massages During Pregnancy

Effect of Massages During Pregnancy Nikita S. Windham Pregnancy and Massage Research has discovered new information that maybe something can be done to help make pregnancy more tolerable that is not only safe but also effective. This solution is known as prenatal massage. Prenatal massage simply put is massage that is personalized specifically to the ever-changing bodies of pregnant women. One benefit of prenatal massage is that it can bring relief to aching muscles and joints. During pregnancy, a womans center of gravity is shifted. This new distribution of weight can put pressure on joints and cause muscles to ache. Massage can provoke the body to release endorphins, which are a natural pain reliever. (Nguyen, 2017) Along with relieving pain, the release of endorphins also contributes to calming the nervous system. The parasympathetic, or rest and digest, system is activated. This allows for better sleep and digestion, which in turn plays a part in decreased stress levels and improved mood. (Nyugen, 2017) Prenatal massage also increases blood circulation. This helps to reduce swelling (edema) and stiffness in muscles as more blood flow travels to those areas. Increased circulation also means that more oxygen and nutrients are pumped to the mother and ultimately the baby. This blood flow stimulates the lymph system, which in turn boosts immunity and toxin elimination. (Nyugen, 2017) Cautions and Contraindications Despite all the many benefits of prenatal massage, there are some instances where massage becomes inadvisable due to the potential harm that it could cause to the mother and baby. Circumstances in which massage should not be given can include sudden migraines, high blood pressure, edema from high blood pressure, preeclampsia, a history of preterm labor, and high-risk pregnancy. (Yogawiz, 2016) High-risk pregnancy can refer to certain conditions such as gestational diabetes, eclampsia, and heart conditions. Pregnant women under 15 or older than 35 and women carrying multiple babies are also considered high risk. Regardless, it is always best for the mother to consult with her doctor before attempting to receive a massage. (Cutler, 2014) Prenatal Massage Controversy There has been much controversy over what areas can and cannot be massaged during certain trimesters of pregnancy. There are specific reflexology points on the body that many have argued should not be pressed or massaged. The ankle is said to be the reflexology point that stimulates uterine contractions. Per Haller, there was a great study in 2014 in which researchers attempted to induce labor in 221 post-due date women by applying acupuncture needles. Even when poking these gals every other day for a week, none of the findings supported reflexology claims. (2015) There is also confusion over whether massage in the first trimester should avoided. It has been said that if a woman is massaged within the first trimester, it could potentially cause a miscarriage. Some sources say that there is no scientifically proven evidence that shows massage causes miscarriage. These sources say that contrary to popular belief, gentle massage can actually be soothing and comforting to both the baby and mother. (Soto, 2013) Despite all the conflicting ideas about massage during pregnancy, one thing can be agreed upon. Prenatal massage should be both beneficial and relaxing for the expectant mother. Pregnancy itself is already difficult, so this therapeutic touch can be a form of nurturing support for the soon to be mom. References Contraindications Of Pregnancy Massage. (2016). Retrieved March 14, 2017, from http://www.yogawiz.com/massage-therapy/pregnancy-massage/pregnancy-massage-contraindications.html#continued Cutler, N. (2014, March 18). High-Risk Pregnancy: Massage Caution or Contraindication? Retrieved March 14, 2017, from http://www.integrativehealthcare.org/mt/archives/2010/05/high-risk_pregn.html Haeller, R. (2015, November 30). Debunking Pregnancy Massage Myths. Retrieved March 14, 2017, from http://momsintow.com/news/debunking_pregnancy_massage_myths Soto, M. L. (2013, September 19). Dispelling the Myth of Avoiding First Trimester Massage. Retrieved March 14, 2017, from https://elementsmassage.com/park-ridge/blog/dispelling-the-myth-of-avoiding-first-trimester-massage Nguyen, Y. (2017, February 02). Prenatal Massage: Get Relief for Your Aches and Pains. Retrieved March 14, 2017, from https://www.fitpregnancy.com/pregnancy/pregnancy-health/prenatal-massage-get-relief-your-aches-and-pains

How does Owen make clear his feelings about war in Dulce et Dorcum est? :: English Literature

How does Owen make clear his feelings about war in Dulce et Dorcum est? The title of this poem which is ‘Dulce et Dorcum est,’ is a Latin saying which means, ‘It is sweet and honorable to die for your country.’ It is written by Wilfred Owen who gives us his opinion about this motto. He uses one of his brutal memories to support his views and to compare a stereotypical soldier as we visualize one in our heads and one as he saw whilst fighting in the war. This memory is of a time when Owen, along with his fellow soldiers is walking back to their rest place, when all of a sudden there is a gas attack. All except one of these soldiers manages to put on his gas mask in time; therefore he dies a horrible death. The poem explores a different mood for each of the four stanzas. In stanza one the mood is slow and weary. In stanza two there is a mood, which is fast and panicky. Stanza three explores a tragic mood and the final stanza has a mood of bitterness and anger. Owen is successful in providing detail throughout the poem. He is also successful in writing the poem as a memory, as he did fight in the war. In this poem he effectively shows his thoughts and expressions, as he wants the reader to think of them. Owen accomplishes the mood in verse one through his use of language. The poem starts with the words â€Å"Bent Double†, which introduces the image of a soldier as Owen remembers one. These words show us the action and figure of the soldiers. In reality you cannot walk bent really close to the ground, therefore these words can be considered as metaphors or slight exaggerations of what the soldiers were doing. These words start off the comparison of a real soldier with a stereotypical one. â€Å"Like old beggars under sacks†¦Ã¢â‚¬  This implies the visual sight of the soldiers if an ordinary person were to see them. This sentence is a simile and therefore means that the soldiers look like beggars. The word ‘sacks’ helps us to visualize the soldiers walking really close to the ground, under the weight of a sack. The simile above can also express torn clothes worn by the soldiers, muddy faces, slight injuries taken on by the soldiers and the mental conditions that they were facing. The simile compares these soldiers to people who have nothing to lose and their uniform to ‘sacks’, which indicates their shabby conditions. Another word, which suggests the speed at which soldiers move, is â€Å"trudge.

Pre-Linguistic Development Essay

As linguistic development designates the stage when children are able to manipulate verbal symbols, it should be apparent that pre-linguistic development refers to the stage before the child is able to manipulate such symbols. Consequently, this stage is sometimes called the pre-symbolic stage. Pre-linguistic development, therefore, concerns itself with precursors to the development of symbolic skills and typically covers the period from birth to around 13 months of age. Four stages can be identified: * Vegetative sounds (0-2 months): the natural sounds that babies make, e.  g. crying, coughing, burping, and swallowing. * Cooing and laughter (2-5 months): these vocalizations usually occur when the baby is comfortable and content. They are typically made up of vowels and consonants. * Vocal play (4-8 months): the infant engages in longer and more continuous streams of either vowel or consonant sounds. * Babbling (6-13 months): at least two sub-stages are identified – reduplicated babbling, in which the child produces a series of Consonant-Vowel (CV) syllables with the same consonant being repeated (e.  g. wa-wa-wa, mu-mu-mu) and non-reduplicated babbling, consisting of either CVC vocalizations (e. g. mom, pip) or VCV vocalizations (e. g. ama, ooboo). [See Speech Development] Up to this stage of development much of what the child produces is really no more than a sort of verbal play. The child is practicing individual sounds, and sound sequences, and gaining the motor skills necessary to produce what will eventually be considered as actual adult words. So, young children make various sounds and others then assign meaning to these. So, for example, a child may reach for an object whilst at the same time saying ‘m’. An adult may interpret this as the child wanting help to get the object. The child, having realized that this combination of physical gesture (reaching) and articulating ‘m’ prompts an adult to pass the desired object, may go on to repeat this behavior. The child is learning that certain actions that he or she performs can be used to control his or her environment. These changes come about because the child’s ability to focus their attention on their caregiver and on objects becomes more refined as they mature. For example, from 0-2 months there is shared attentiveness in which only the baby and caregiver form part of any interactive event – all other elements are ignored. From 2-6 months there is interpersonal engagement when the baby is conceptually able to differentiate their own self from the caregiver and focus attention on each other and on the ‘message’ of the communicative event. Then, from about 6-15 months there is a shift such that the child is now able to focus attention on objects (e. g. cups, toys, books) and understand that the communicative event is focused on these. This is sometimes called joint object involvement. It is, however, the emergence of words from about 12 months onwards that signals the onset of linguistic development. This is the stage when there is symbolic communication emerges. Linguistic Development Linguistic development occurs at what is called the One Word Stage. It is at this stage that we can properly talk about a child’sexpressive language, i. e. the words used to express emotions, feelings, wants, needs, ideas, and so on. This should not be confused with the child’s understanding or receptive language. The two are, of course, closely related. However, a child will typically understand much more than he or she can actually express and a child’s expressive language, therefore, lags behind its comprehension by a few months. Early One Word Stage (12-19 months) Before the emergence of the first ‘adult’ words the child will use specific sound combinations in particular situations. The sound combinations are not conventional adult words but they appear to be being used consistently to express meaning. For example, if the child says mu every time he or she is offered a bottle of milk then this may be considered to be a ‘real’ word. Similarly, if the child says bibi each time he or she is given a biscuit then, even though the sound combination does not represent an exact adult word, it would still be considered an early word. These early words are called protowords. The child will also be using gesture together with these specific vocalizations in order to obtain needs, express emotions, and so on. The important point is that the child is consistent in his or her use of a particular ‘word’. Later One Word Stage (14-24 months) The words used by the child are now more readily identifiable as actual adult words. A variety of single words are used to express his or her feelings, needs, wants, and so on. This is the stage at which, amongst other things, the child begins to name and label the objects and people around them. Examples include common nouns such as cup dog hat proper nouns such as Dad Sarah Rover and verbs such as kiss go sit The child may also use a few social words such as no bye-bye please The child will not yet have developed all the adult speech sounds and so the words used are unlikely to sound exactly as an adult would say them. However, they are beginning to approximate more closely to an adult model and they are beginning to be used consistently. At the end of the One Word Stage the child should have a much larger vocabulary, should be able to sustain a simple conversation, be using several adult speech sounds appropriately, and be conveying meaning through the use of single words in combination with facial expression, gesture and actions. These single words will express a variety of meaning. The next stage in the child’s development of expressive language is that he or she begins to combine two words together into simplephrases. Two Word Stage (20-30 months) It is at this stage that the child begins to produce two-word combinations similar to the following. daddy car shoe on where Katie Note that a variety of different word classes may be combined: * For example, daddy car involves the combination of two words from the same word class of nouns one noun (daddy) with another noun (car). * However, shoe on consists of two words from two different word classes, nouns and prepositions: one noun (shoe) plus a preposition (on). * Also, where Katie uses a so-called interrogative pronoun (where) together with a proper noun (Katie). In fact, a high percentage of these two-word combinations incorporate nouns. This is not surprising, as the child has spent a lot of time learning the names of objects and people. These are the important things in his or her environment and the things that are most likely to be manipulated, talked about, and so on. They are often the concrete, permanent things to which the child can most readily relate. In addition, at this Two Word Stage there is also prolific use of verbs (e. g. go, run, drink, eat). Three Word Stage (28-42 months). As its name implies, at this next stage of development children extend their two-word utterances by incorporating at least another word. In reality children may add up to two more words, thereby creating utterances as long as four words. The child makes greater use of pronouns (e. g. I, you, he, she, they, me) at this stage, e. g. me kiss mummy you make toy he hit ball It is at this stage that the child also begins to use the articles the, a and an. At first their use is inconsistent but as the child approaches 42 months of age they become more consolidated in their utterances, e. g. me kick a ball you give the dolly he throw an orange. In addition, it is common for the prepositions in and on to be incorporated between two nouns or pronouns, e. g. mummy on bed you in it Sarah in bath Four Word Stage (34-48 months) From about 34 months the child begins to combine between four to six words in any one utterance. There is greater use of contrast between prepositions such as in, on and under and adjectives such as big and little, e. g. mummy on little bed daddy under big car daddy playing with the little ball Complex Utterance Stage (48-60 months) This stage is typified by longer utterances, with the child regularly producing utterances of over six words in length. It is at this stage that the concept of past and future time develops and this is expressed linguistically in a child’s utterances, e. g. we all went to see Ryan yesterday [past time] Daddy is going to get a shoe [future time] Robert stopped and kicked a good goal [past time] Some of the more conceptually difficult prepositions such as behind, in front and next to also become established at this stage. The child will also be using the contracted negative, e. g. can’t rather than can not, didn’t rather than did not, won’t rather than will not, and so on. Example utterances include the following. Helen can’t go to granddad’s house Connor didn’t stop crying he won’t eat up all his dinner for mummy There is a lot of controversy about just when the Complex Utterance Stage is completed. Some researchers claim that at five years of age a child has developed all of the major adult linguistic features and that the only real progression beyond this stage is the further acquisition of vocabulary items. Other researchers, however, argue that children up to the age of 12 years are still developing adult sentence structure. As indicated, our overview of language development has focused on how the child develops longer and longer utterances, i. e. it has concentrated on expressive language. It should be noted, however, that there is a parallel development of comprehension, or receptive language. So, for example, at the Early One Word Stage the child is capable of understanding a few single words spoken by others as well as speaking a few words. Similarly, at the Three Word Stage the child can also comprehend the four to six word utterances spoken by others as well as producing such utterances themselves. In summary, the child will need to be able to comprehend utterances at least at the same level as those that he or she is able to construct and use expressively. In reality, we find that a child’s level of understanding actually precedes their level of expression. That is to say, a typically developing child will always understand more than they can express. The extent to which the development of receptive language precedes expressive language is highly variable and it is not possible to define any precise norms. The following table summarizes the stages of early development of expressive language. Precursors to Language (Pre-linguistic)| 0-2 months| 2-5 months| 4-8 months| 6-13 months| reflexive crying and vegetative sounds| cooing and laughter| vocal play| babbling – reduplicated – non-reduplicated| (Symbolic) Language| 12-19 months| 14-24 months| 20-30 months| 28-42 months| 34-48 months| 48-60 months| Early One Word Stage(protowords)| Later One Word Stage| Two Word Stage| Three Word Stage| Four Word Stage| Complex Utterance Stage| Table 1. Early Development of Expressive Language.

Motivation Theories - 1236 Words

The four motivation theories are Biological theory, Psychosocial theory of motivation, Biopsychosocial, and Achievement theory. Everyone has their own motivation in life for continuing education, and career choices. Each person also has Intrinsic and Extrinsic motivators. Intrinsic is an internal motivation for self satisfaction. Extrinsic is an external motivation, or reward for a person’s accomplishment. Motivation Theories: Linda was motivated to go back to school because she wanted an education that would help to further her in her career, or help her to move on to another one. Linda worked her way up in her field and found that people with a degree were earning more for the same position than she has. It is well known that in†¦show more content†¦Her gourmet meal was ramen noodles. Not being happy at home affected her grades and her social life. She wants to ensure that her daughter does not go through this as well. Jamie believes the Psychosocial Theories incentive theory would best fit with her motivation. Incentive Theory explains how one is motivated to reach something they want or to elude something that they don’t. In this case Jamie does not want her daughter to grow up in the same lifestyle that she did. She wants’ her to grow up in a safe environment. Intrinsic and Extrinsic Motivators: Intrinsic motivation refers to motivation that comes from inside an individual rather than from any external or outside rewards (Carpenter, Visualizing Psychology). Extrinsic motivations can change something pleasurable into work (Carpenter, Visualizing Psychology). Extrinsic motivations are often the motivator to do an action even though it is not always something you want to do. Linda wants to receive a high grade, so this would be the intrinsic motivation for her. Her extrinsic motivation is when she has worked hard and receives a high grade. It is the reward she receives for her hard work. It gives her a sense of accomplishment, and motivates her to continue to work hard. Audra’s intrinsic motivation is the satisfaction of a job well done. When a wedding goes well and the bride and groom are happy she feels a senseShow MoreRelatedTheories Of Motivation And Motivation Theories1493 Words   |  6 Pagesextent, needs of theories of motivation are still relevant to contemporary management practice. Theories of motivation are important as it helps managers to understand their employees’ needs of motivations, and to motivate their employees to perform and excel better. There are several motivation theories; this essay will briefly explain six major theories of motivation and discuss three of the theories in more detail. This essay will also explain the needs theories of motivation, and will focus onRead MoreMotivation Theory : Motivation And Motivation846 Words   |  4 PagesProfessor Jones Psychology April 28 2016 Motivation Theories Having motivation to do something is very important. Motivation plays a huge roll in everyone’s life, even If someone has very little motivation. There are several types of motivation such as Instinct and drive motivation. These two motivations are quite similar, but different at the same time. I will compare and contrast both of these types of motivation and what I think about them. These motivations are very important to your life and canRead MoreMotivation Theories Of Motivation And Motivation Essay1020 Words   |  5 Pages Overview of Presentation What is motivation? Cognitive theories of Motivation Forms of Motivation Motivation Theories Profile of Motivational Problems How to Motivate Students What is Motivation? 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Moreover, The term motivation refers to factors that activate, direct, and sustain goal-directed behaviourRead MoreThe Theory Of Motivation And Motivation1401 Words   |  6 Pages Schools of thought in relation to motivation refer to the theories developed by different psychologists to explain motivation in dept. it is crucial to understand motivation and the factors that cause it since it contributes to achievement of one’s goal and desires in life. Therefore, motivation can be described as the process of enticing an individual through a reward to increase the occurrence of a specified behavior in an organization. Different factors can be used as motivators in an organizationRead MoreThe Theory Of Motivation And Motivation1010 Words   |  5 PagesMotivation is defined as an act or process that inspires and stimulates a person to be an effort to achieve a goal. It not only puts employees in act, but also makes them feel interesting with their job. As a result, most of employees are feeling satisfaction with their job, becoming creativity, innovation and productivity as well. However, to successful in motivating the staff is required an appropriate met hod that meets with all staff’s need. Otherwise, it is seems to useless in driving the employeesRead MoreMotivation Theory And Expectancy Theory Of Motivation1742 Words   |  7 Pagesplace. This problem mainly occurs in organisation when there is lack of motivation, lack of organisational justice, negative culture and low morale. The purpose of this case study is to give brief view about, why employees had to face these problems and how to make positive culture and what and where the changes are required for the WA force. This report introduces MARS motivation theory and Expectancy theory of motivation for improves officers’ behaviours towards force, with that how can they fillRead MoreMotivation Theories And Motivation Of Employee Motivation Essay1517 Words   |  7 Pagescontrol and some that are not. Employee motivation is something that can directly affect an organizations production. It is no secret that un-motivated employees equates to un-productive workers, but how can we combat this? In order to better understand this concept we will look at the definition of employee motivation, some of the motivation theories and some motivation techniques that could be useful in our organizations. What is employee motivation? Motivation is a word used quite often in many differentRead MoreMotivation Theories1577 Words   |  7 Pagesâ€Å"Motivation is the will and desire that a person has to engage in a particular behaviour or perform a particular task† (Lawley King, P269). In life motivation will be needed to enhance the workforce in various ways, many organisations will use motivation to increase the percentage yield of an individual or to make an individual feel a part of the business or organisation. Incentives have a huge influence on behaviourist extrinsic approach. In addition other aspects; humanist theorist, intrinsicRead MoreThe Importance Of Motivation And Motivation Theory1401 Words   |  6 Pagesperformance. Therefore motivation is one of the most complex and important topics in industrial and organizational psychology (Smither ,1997). The main purpose of this essay is to explain different kinds of motivation and why it is necessary, and create a proper motivation mechanism for the company. On the one hand, I studied current research and research different motivation theories. On the other hand, I will compare the common and different things among these motivation theories, and try to find

Study And Comparison Of Islamic Bank Performance Finance Essay - Free Essay Example

Sample details Pages: 18 Words: 5323 Downloads: 4 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? Islamic banking in Pakistan started around not more than three decades ago with an program to eliminate interest from specialized institutions and commercial banks in 1977-78, but serious efforts have been made only recently when in January 2000, State Bank of Pakistan constituted a Commission for Transformation of Financial System (CTFS) to introduce Shariah compliant modes of financing, and, on 15 September 2003, when the State Bank of Pakistan (SBP)established the Islamic Banking Department. As a result of these serious efforts, Islamic banking is now playing an important role in financing and contributing to different economic and social sectors in the country in compliance with the principles of Islamic Shariah. Islamic banks in Pakistan currently amount to only six in number and majority of these Islamic banks started their operations only recently except Meezan Bank Limited, which has been in operation for around a decade now. Don’t waste time! Our writers will create an original "Study And Comparison Of Islamic Bank Performance Finance Essay" essay for you Create order On the contrary, conventional commercial banks in Pakistan are comparatively very large in both, size and number, and majority of them have been operating for decades. Currently, Conventional Commercial Banks in Pakistan heavily outperform the Islamic banks in terms of market share and profitability figures, but analyzing figures of growth rates in factors such as market share, asset base and profits, Islamic banks have been following steep graphs lately. The paper that follows is an attempt to analyze various measures and figures showing that Islamic banks have great potential and a promising future in the countrys bank industry. The paper also throws light on the measurement technique, ROE (return on equity) and the economic concept of the market for lemons (George Akerlof), which tend to undermine the performance of Islamic Banks in the industry. Many studies can be found on the performance of Islamic and commercial banks taken apart, but no substantial research on compar ative analysis of both can be detected in the literature on banking as such. Economic development and financial sector development are linked and inter related with one another. Efficient financial sector and functioning plays an important role in the stage of growth of the economy as well as in containing and improving the living standard of its population. Banking system in an economy operates just like blood circulatory system in a body. Just as an efficient blood circulation system ensures healthy body, an equitable banking system ensures economic efficiency and corporate strength. Pakistan has quite a sound and well established banking industry consisting of both Islamic and commercial banks. Commercial Banking dates to almost as far back in time as the country itself. Islamic banking, on the contrary, is only a recent phenomenon. Moreover, commercial banks greatly outnumber Islamic banks. This is why both extensive and intensive studies have been enormously carried out on c ommercial banks while Islamic banking lags far behind that level of research literature. The focus of this paper, therefore, is going to be primarily more on Islamic Banking and its performance. Rising competition, liberalization, consolidation across banks, globalization, and continuous innovation to establish Islamic financial services have resulted in detailed studies and critical evaluation of financial performance of Islamic banks in recent years. Performance evaluation of banks is not only important for depositors and investors but also for bank managers and regulatory bodies. Depositors and investors make decisions of whether to invest or withdraw in a bank based on their interpretation of the banks performance measures. This is even more so in case of Islamic banks where depositors are not entitled to fixed returns and have unguaranteed nominal values of their deposits. Similarly, managers are keen to judge outcomes of management decisions and need to evaluate performance of their loan service or deposit service to improve their finance system. In competitive financial markets performance, hence, holds utmost importance for both the bank and the customers. Aim:- The paper aims to see through the performance of Islamic banking in comparison to conventional banking in the country. Financial ratios have been used to measure and compare Islamic bank and conventional banks performances in the profitability, liquidity, risk solvency, and efficiency. T-test and F-test are used to determine the significance of the results. For in depth research, Meezan Bank has been initially studied for the overall representation of Islamic Banks against commercial banks. Data and Financial statements of Meezan Bank, over the years are easily available. Scope of the paper:- The paper studies 5 big ones out of the total of 35 commercial banks in Pakistan, which, on the whole, is quite enough to provide substantial room to generalize results. On the Islamic side , there are six full-fledged Islamic banks in the Industry; five are private banks and one is a foreign bank. Amongst them, Meezan Bank Limited (MBL) is the only old, somewhat big and experienced domestic and private Islamic bank in Pakistan operating last for more than six years. Almost all of rest of the Islamic banks in the country started their operations only recently except Albaraka Islamic Bank (AIB) which is a foreign bank operating in the country as branches of AlBaraka Islamic Bank Bahrain since 1991 (Source: AIB). Being a foreign bank, we did not select AIB as Islamic bank for our study because the study is aimed at comparing performance of conventional banks against Islamic banks in Pakistans banking Industry. Also, AIB has been overlooked because it is very small in size. We had an open and wide range of conventional banks to from a group for the paper but data availability, time limitations, and other reasons restricted us to the selection of only 5 conventional banks to compare financial performance with Islamic bank (MBL). RESEARCH METHODOLOGY The paper mainly uses secondary method of research to go about proving its point. Research can be broken down into following steps. Finance courses: Finance Concepts learnt in finance courses taken here in university, form the basis of how I have initially approached the topic. Banks Financial Statements: To further analyze and explain the stance taken in the topic, the basic method of research is to gather data and trends shown by the banking industry by studying and cross comparing Annual Financial Statements of various commercial and Islamic banks. In this process, financial statements of Big 5 commercial Banks i.e., MCB Bank Limited  (owned by  Mian Mohammad Mansha), National Bank of Pakistan, Habib Bank Limited and United Bank Limited have been analyzed and their trends of growth rates over the years have been scrutinized. For Islamic banking side, Meezan Bank, the larges t and the oldest of all, has been mainly targeted for financial statement analysis, along with other Islamic banks like Emirates Global Islamic Bank Limited and BankIslami Pakistan Limited. Financial statements can easily be found on the internet or any of the banks branches. Internet: To find data in compiled and shaped out form, internet is a very handy tool. Browsing data on the internet forms an integral part of the research process. Publications: Performance of Islamic Banking and Conventional Banking in Pakistan: A Comparative Study By Muhammad Shehzad Moin, University of Skà ¶vde, is the main reference paper for my report. Other related reference papers from libraries and book shops havel also been searched, studied and properly cited. Finance Experts interviews: Further, gathering direct views and opinions by interviewing professors and practitioners in the finance field is another method that has been employed for the report. Dr. Mohammad Basharullah, visiting Faculty, Suleman Dawood School of Business, Lahore University of Management (LUMS) and Mr. Aneel Iqbal, ACCA, CA, CFA, CMA (silver medalist) were interviewed to enlighten the paper with their thoughts on the comparison between performance of Islamic and commercial banks. State Banks Papers: Also, State Bank of Pakistans publications on Islamic banks performance have been studied and compared against those on commercial banks performance. https://www.sbp.org.pk/departments/Publications.htm is the link to the page that features all publications on Islamic Banks performance on the State Banks Official Website. The main paper studied in regard for our purpose is Pakistans Islamic Banking Sector Review that is available on the above mentioned link. Furthermore, relevant publications have been selected and read from this list of publications on the web link https://www.sbp.org.pk/publications/index2.asp. Learning concepts: For the purpose of the paper, the concepts of profitability ratios Reurn on Equity (ROE), Return on assets (ROA), Profit to Expenses Ratio (PER), and liquidity ratios Loan to deposit ratio (LDR), Cash Portfolio Investment to Deposit Ratio (CPIDR) have been thoroughly gripped. RISK AND SOLVENCY RATIOS and EFFICIENCY RATIOS have been covered to derive empirical results. Furthermore, the market for lemons (George Akerlof) will be deeply scrutinized. Different books and papers on these concepts have been studied to build hold on these concepts. These concepts have then been applied and studied in relevance to the case of Islamic banks performance. The paper explains how these factors tend to undermine the performance of Islamic banks. Introduction to Islamic banking.. Islamic Banks aim to provide banking services that are in accordance with Islamic Principles and Shariah within the complete Islamic financial system, which in turn aims to bring the most benefit to society in terms of equity and prosperity, rather than focusing solely on creating maximum returns on capital (Zaheer and Hassan, 2001: 158). Islamic banking has been defined as banking in consonance with the ethos and value system of Islam and governed, in addition to the conventional good governance and risk management rules, by the principles laid down by Islamic Shariah. Interest free banking is a narrow concept denoting a number of banking instruments or operations, which avoid interest. Islamic banking, the more general term is expected not only to avoid interestbased transactions, prohibited in the Islamic Shariah, but also to avoid unethical practices and participate actively in achieving the goals and objectives of an Islamic Economy (Source: SBP). Islamic banking is t he system of banking consistent with principles of Islamic law (Shariah) and guided by Islamic economics. Islamic economics is referred to that body of knowledge which helps realize human well-being through an allocation and distribution of scarce resources that is in conformity with Islamic teachings without unduly curbing individual freedom or creating continued macroeconomic and ecological imbalances (Chapra 1996). A key element of Islamic economics is distribution of equitable rewards to the different factors of production. Islamic economic system seeks system of Redistributive justice where concentration of wealth in a few hands is countered and flow of money into the economy is fluent. Islamic banking is, therefore, seen as a lynchpin to achieving the economic and social goals of the Islamic economic system. (Source: Bank Alfalah). Islamic banks aim to achieve the socio-economic goals of the Islamic religion which are reaching full-employment, a high rate of economic gro wth, equitable distribution of wealth and income, socioeconomic justice, smooth mobilization of investments and savings while ensuring a fair return for all parties and finally emphasize the stability of money value (Hassan and Mervyn, 2007 Chapra, 1995). For both, commercial and Islamic banks, the basic concepts and objectives hold common. All they differ in is the methodology employed to go about fulfilling those objectives. To be very simple, conventional banking aims to meet these objectives through use of interest- based contracts (Riba) while Islamic banking achieves the same through trade-based contracts. The former is strictly forbidden under the very fundamentals of Islam. But Allah has permitted trading, and prohibited Riba Quran Islamic Banking was actually demanded to implement the divine instructions on all transactions specifically those involving exchange of Money for Money. But, here it is noteworthy to mention that it will be a total injustice to bind Is lamic Banking to the eradication of RIBA only. Riba is one of the most undesirable elements in an economic transaction. Qimar (speculation) and Gharar (risk or uncertainty) are the others. While removal of these objectionable aspects is one of the very critical aims of Islamic banking, it is by no means its ultimate objective. And that which you give in gift (loan) (to others), in order that it may increase (your wealth by expecting to get a better one in return) from other peoples property, has no increase with Allà ¢h; but that which you give in Zakà ¢t (sadaqa charity etc.) seeking Allà ¢hs Countenance, then those, they shall have manifold increase. Sura Ar-Rum (30:39). That they took riba (usury), though they were forbidden and that they devoured menssubstance wrongfully We have prepared for those among men who reject faith agrievous punishment. Sura An-Nisa (4:161). In Muslim societies, limited banking activity can be traced goes back to the time of the Holy Prophet Muhammad (SAW). Just like all other Islamic teachings, the origin of Islamic finance dates back to the era of The Holy Prophet Muhammad (SAW). The Quran and the example of the Holy Prophet Muhammad (SAW) provide the model and feature the foundation of Islamic fundamentals to over one billion Muslims round the globe. The Holy Prophet (SAW) happened to be a business man serving as a trader for Hazrat Khadija (May Allah Almighty be pleased with Her). The Prophetic example was the very archetype of fair-trade. Ensuring transparency in transactions, refraining from usury, and honesty entitled him the title of Al- Amin (The trustworthy) in pre-Islamic Arabia. At that time people deposited money with the Prophet Muhammad (SAW). For a long time, some circles argued that Islam prohibits excessive interest only or the interest on consumptive loan. Such lame arguing fails to give due understanding to versus 278 279 of Surah Albaqra (quoted below); O ye who believe! Be afraid of Allah and give up what remains (due to you) from Riba (usury) (from now onwards) if you are (really) believers. (2:278). And if you do not do it, take notice of war from Allah and His messenger! But if you repent, you shall have your capital sums. (2:279). All this does not mean that Islam prohibits any gain on principal sums. In Islam, Profit is the standard incentive reward of capital. When capital employed in Halal business yields profit, that profit has rightful and just claim of the owner of the capital over it. As a corollary, the risk of loss also lies exclusively with the owner of the capital and no other factor of production is should be liable to incur it. Another important element of Islamic Principles is that reward or profit can only be claimed in the instance where effort has been expended or risk of loss has been assumed. Profit is therefore received by the provider/owner of the capital and remuneration by labor/manager of the capital. An Investor in a n Islamic bank can therefore make earnings on his or her deposit through either return on his capital when that capital is employed in a business venture or sharing of profit when his capital is part of capital that is employed in a partnership Halal Business or through rental earnings on an asset that has been partially financed by his capital. Difference between conventional and Islamic banking ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦.. ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦ . Islamic Banking in Pakistan As early as in 1948, the Quaid e Azam, Muhammad Ali Jinnah, emphasized the virtues of Islamic system of finance and in his address at the inauguration of the State Bank of Pakistan (SBP), said: I shall watch with keenness the work of your Organization in evolving banking practices compatible with Islamic ideas of social and economic life. We must work our destiny in our own way and present to the world an economic system based on true Islamic concept of equality of manhood and social justice. Banks in Pakistan share their 95 percent of the financial sector , therefore good health of bank, development of Pakistan and economic growth directly related with one another. Pakistani banking system, which is composed of 50 to 53 banks. 4 specialized banks 6 Islamic banks 6 micro finance banks 7 Developmental financial institutions 30 commercial banks The banking sector in Pakistan is composed of owned and government banks which are 9 in number, private b anks are 22, privatized banks are 4, foreign banks are 5, development institutions are 7, non member banks are 4 and 2 are the SME banks which are small and medium enterprises. Of all the total system assets, four largest commercial banks make up 44.2 percent, while eight second tier banks account for a further 35 percent indicating moderate concentration Banks of Pakistan have been all the time involved in fulfilling and catering the needs of government organizations, subsidizing the fiscal deficit, engaging in trade financing, and serving large corporations. SME enterprises, housing sector and agriculture sector which are involved in improving growth and employment in Pakistan were deprived of lending. Moreover, financial system in Pakistan was also affected and under the influence of politics. There was utmost political intervention in lending decisions and in the appointment of managers. Over the last 15 years, the privatization of public sector banks , the entrance of pri vate banks and the tightening of prudential regulations have changed the Pakistani banking system. Currently, private sector is controlling nearly 80 percent of the system assets, as opposed to the early 1990s when it (share) was only 10% however government at that time were controlling 90% of the system assets. Moreover, total financial assets have reached 175$ billion which constitute 110% of GDP. The banking system shares 40% of total stock market capitalization and amounts to 95% of the total assets of financial institutions. Deposit base has reached to $60 billion and advancing to $47 billion. However growing financial intermediation has played an important role towards banks aggregate profitability to take to $1.8 billion. Of the entire total paid up capital of all the financial institutions regulated by the state bank of Pakistan, currently foreign stake comes to 47% of it. Islamic banking which was started in 1977-78 in Pakistan, which introduce new laws, included in t he removal and elimination of interest from the operation of specialized institution and commercial banks. There were some amendments were made in the financial system as well as in the corporate sector to allow the issuance of new interest- free instrument of corporate financingnamed, PTC Participation Term certificate. Just at the same time, Ordinance was introduced to permit the establishment of mudarba companies and flotation of Mudarba certificates, with the aim of rising risk based capital. On july 1st, 1948 the pak rupee were made interest free from all the commercial banks. In January 2000. In the state bank of Pakistan, a commission for transforming financial system (CTFS) was constituted to introduce Shariah compliant modes of financing. CTFS was held responsible primarily for creating legal infrastructure conducive for working of Islamic financial system, introducing a good education and training programs for their clients and bankers, and to create awareness for the g eneral public for the Islamic financial system and also to teach them how to deal with major products of banks and financial institutions both for assets and liabilities side. In September 2001, Government of Pakistan decided to make jumped to an idea of interest free economy in a gradual and phased manner without causing any disruptions. It was also the part of the decision that state bank will be considering for establishing subsidiaries by the commercial banks for the aim of carrying out shariah compliant transaction. Specifying branhes by the commercial banks exclusively dealing in Islamic products and, creating new full fleged commercial banks to carry out utterly banking business based on proposed Islamic financial products. On 15th of September 2003, the state bank of Pakistan SBP introduce the Islamic banking department with the vision of to promote and regulate Islamic banking industry in line with best international practices ensuring shariah compliances and transpar ency and with the aim of making Islamic banking the first preference for the 15 providers and users of financial services. In January 2002, Meezan bank Limited was granted first ISLAMIC BANKING LICENSE by the State bank of Pakistan. Their major task is to promote and develop the shariah compliant Islamic banking as a compatible banking system in the country. That organization is composed of three division: policy division, business support division and shariah compliance division. A shariah borad consists of experts to guide the Islamic banking industry is also in place at SBP. Prudential regulation, risk management , corporate governance and accounting shariah standards etc.. are the major areas SBP is working on to regulate and supervise the Islamic banking sector. Presently, Islamic banking sector is working under the existing laws. Currently there are six full-fleged Islamic banks operationg in Pakistan. These banks with their year of incorporation are: Bankislami P akistan limited (2003) Albaraka Islamic bank Pakistan (1991) Dubai Islamic bank Pakistan limited(2005) Meezan bank limited (2002- restricted as Islamic bank) Emirates global Islamic bank limited (2007) Dawood Islamic bank limited (2007) Among the banks listed above. ALBARAKA Islamic bank is the only foreign bank working in Pakistan, while meezan bank has the honor of being the first domestic commercial bank offered full fleged Islamic banking license by SBP in januray 2002. However in the overall banking system the market share of Islamic banking assets rise up to 4.3% as of December 31, 2007 compared with 3.0% in preceding year. Islamic banking deposits, financing and investment stood at 4.1%, 4.3% and 2.6% respectively as compared to 2.7%. 2.88% and 0.94% a year earlier. Year on year (yoy) growth for total assets, deposits and financing and investment was 75%, 78%, 91% respectively. Branch network during the same period reached 289 from 150 branches, showing 9 3% increase in year 2007.its expected that by the end of this financial year the share of assets of Islamic banking to overall industry widd cross 5.0%. we can say that Islamic banking industry is growing with good signs of financial inculsion. Meezan bank is leading all the Islamic banks while among the IBDS of conventional banks, bank alfalah is on the top. GROWTH OF ISLAMIC BAKNING ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦ÃƒÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¦. RATIOS ANALYSIS The study is intended to be a comparative financial performance of Islamic banking in comparison with conservative banking in Pakistan. Basically the comparison is between the Meezan bank limited (Islamic bank), with the recital of five conventional banks.In todays world where there is a great spirited financial market, one can justly understand the banks performance in any regard by the analysis of the inter banks comparison. Therefore in this study the balance sheets and income statements for two set of banks have been considered and the data is collected and compiled from it. Inter-bank analysis is one of the best types to be used while doing a study on banks. There have been many ways and methods by different financial theorists to measure the banks performances more accurately. However the ratios have proven to show more precise results and they are therefore more vastly and commonly used for the analysis. For instance, many of the bank regulatorss (Sabbi 1996), (Spindler -1991) have been using different ratios. For this study, in order to analyze how the Islamic banks perform in accordance with the other set of five conventional banks, the ratios method is to be used. For a detailed study, 12 financial performance ratios have been considered. For convenience these ratios have been divided into their main categories as follows: MAKE A TABLE 1) Profitability ratios 2) Liquidity ratios 3) Risk and solvency ratios 4) Efficiency ratios. There are five conventional banks to be compared with one Islamic bank so for that reason first ratio of each conventional bank is calculated, and after that the ratios of all the banks are averaged. And in end they are compared with the ratio of the Islamic bank in each individual year. PROFITIBILTY RATIOS: The ratios which are meant to give the most accurate results about the performance of a bank are the performance ratios. Usually if they are high in accordance with the previous ratios, the previous year, the banks in competition and the industry, they reflect betterment in performance of the bank in the related period. More often the profit is the difference of the revenues and expenses and this is the most crucial aspect for any firm to analyze. These ratios help in calculating the profits while keeping in mind the entire cost including income taxes, shareholders equity, and other expenses. To study the comparison of two banks, in the profitability ratio, following criteria is used: Return on assets (ROA), Return on equity (ROE) and profit expense ratio (PER). Return on assets (ROA): Return on assets indicates the profitability on the assets of the firm after all expenses and taxes (van Horne 2005).it is all about how well can banks convert all of its assets into a handsome amount of earnings. It is a common measure of managerial performance (Ross, Westerfield, Jaffe 2005).Higher ratio generally shows the better performance and how good the firm has made use of its assets however the lower ratio indicates the poor performance and the low rate of converting the assets into earnings. There are ways of increasing the rate on assets by either increasing the turnover rate or the margin but the few limitations makes it a bit troublesome. One is the tradeoff between the margin and the turn over and the second reason is the great competition. It is however calculated as: ROA = net profit after tax / total assets Year 2003 2004 2005 2006 2007 2008 2009 Mean S.D Islamic Bank 1.93% 1.14% 1.37% 1.30% 1.43% 1.49% 1.50% 1.49% 0.00296 Conventional Bank 2.18% 1.35% 1.59% 1.47% 1.38% 1.6% 1.58% 1.59% 0.0034 ROA decreased to 1.14%, from 1.93%, and to 2.18% from 1.35% during 2003-2004 for Islamic and conservative banks, respectively. Decline in ROA in 2003-04, conservative banks recovered it in 2004-2005.But the recovery was temporary. Since 2005, conventional banks ROA have constantly decreased. ROA of Islamic bank has been fluctuating as it increased in 2004-05, from 1.14% to 1.37%, but decreased to 1.30% in 2006 and in 2007, it was 1.43% with 0.13% increase. Lately, in 2008 and 2009, trends have remained rather constant. ROA on an average of conventional banks is 1.59% that is higher than average of Islamic banks ROA i.e. 1.49%. 2008 Islamic and conventional banks financial results revealed whether R OA of conservative banks will keep on declining and whether ROA will increase or decrease of Islamic banks. Nevertheless, Pakistans banking sector is growing but by looking at the 4years trend of ROA both kind of banking has been facing the problem with profitability. Return on equity (ROE): This ratio shows the prosperity to shareholders after all the taxes and expenses of the firm. Moreover ROE is net earnings per dollar equity capital (Samad and Hassan 2000). It basically signifies the managerial efficiency. Higher return on assets and debt can be the reasons for the higher rate of return on equity. ROE is always increased by the financial leverage and it is where it differentiates ROE with ROA.Studies have shown that high growth companies have higher ROE. It is thus calculated as: ROE = net profit after tax / shareholders equity TABLE ROE 2003-2009 Year 2003 2004 2005 2006 2007 2008 2009 Mean SD Islamic Bank 12.23% 10.69% 13.87% 12.69% 16.88% 16.95% 16.05 14.19% 0.02317 Conventional Bank 29.83% 21.04% 23.60% 19.95% 19.38 % 19.0% 18.35 21.64% 0.04217 The study of ROE of conservative and Islamic banks gives some important points to consider. In 2003-2007 The ROE of conservative banks is higher than that of the Islamic banks. In 2003, difference was large that decreased during 2004-2007. The difference is 17.6% in 2003, this in 2007 has been plummeted to 2.5%. This huge decrease in two ROEs is mostly due to Islamic banks overall trend that is increasing ROE and decrease in conventional banks ROE. This all has given us an important insight. Islamic banks ROE followed conventional banks in terms of decrease and increase during 2003-07. Where as in the years when there is increase in the ROE of the banks, the increase in the ROE of Islamic ban ks is more than that of the conventional bank (Islamic banks have 30% increase as compared to conventional banks 12% increase in 2003-05), and Islamic banks decrease in ROE has been less than decrease in ROE of conventional banks (Islamic bank has decrease of 8.5% as compared to conventional banks 15% decrease in 2005-06). Islamic banks ROE in 2003 was 12.23% and it increased to 16.05% in 2009. On the other hand, ROE of conventional banks was 29.83% in 2003, decreasing to18.35% in 2009. Financial statements analysis of Islamic banks have shown that overall profits are increased more than Islamic banks equity base that resulted in ROE to increase over time. On the other hand, the group of 5 conventional banks, their equity base increased but their profits base decreased which was the main reason for overall decrease in ROE from 2003-09. Profit to Expense Ratio: This ratio shows the degree to which the firm is efficient in the operating activities. A higher PER means bank is cost efficient and is making higher profits (Samad and Hassan 2000).it is calculated as: PER = profit before tax/ operating expense Year 2003 2004 2005 2006 2007 2008 2009 Mean SD Islamic Bank 0.94% 0.57% 0.88% 0.76% 0.72% 0.76% 0.72% 0.76% 0.155306 Conventional Bank 1.91% 1.30% 1.48% 1.20% 0.82 % 0.81% 0.74% 1.18 % 0.39873 PER is showing that conservative banks are more profitable than Islamic banks in terms of expenses in 2003-09. The study indicates that conservative banks have been generating higher profits consistently for every rupee of expense spent during 2003-09 but with a decreasing trend as compare to Islamic banks. There was decrease in 2003-04 but conventional banks PER increased in 2005, but after that it has been decreasing without any rise. Conventional banks had PER of 1.91 in 2003 but it decreased by 65% and came down to 0.74 in 2009.Conventional banks this decrease is much more deep than of Islamic banks that happened during the same period. In 2007 Islamic bank PER decreased to 0.72 from 0.94 in 2 003 which makes it 20% decrease. Further financial statements of the 5 conventional banks were analyzed which included the study that revealed the fact that conventional banks have increased expenses during 2005-09, However, for few other banks there was not such increase in the profit and even for some it decreased, which resulted in the decrease of PER for conventional banks. LIQUIDITY RATIOS: The liquidity ratio shows the firms capacity to convene persistent financial responsibility and obligation. Liquidity is important for the firm to avoid defaulting on its financial obligations and, thus, to avoid experiencing financial distress (Ross, Westerfield, Jeff 2005).It greatly helps the firm to judge its short term obligations, measures its ability in terms of collecting the receivables and also the ways to maintain the cash. Lower liquidity ratio means that the firm has a great capacity to recover its short term obligations and that it has a good range of margin with respect to the safety of the firm. Banks can get into the liquidity problem especially when withdrawal exceeds new deposit significantly over a short period of time (Samad and Hassan 2000).liquidity has certain measures. Following are they: Loan to Deposit Ratio (LDR), Cash and Portfolio Investment to Deposit Ratio (CPID), and Loan to Asset Ratio (LAR). Loan to Deposit Ratio (LDR): This ratio being the most important clarifies the overall liquidity condition of the firm. In Islamic banking system the word loan is used differently and in other set of banks with different meaning. They are considered finances for the Islamic banks and the conventional banks use it as advances. The reason for this is the disallowing of using the loans by Islamic system that is (riba).they are also strict in following the Islamic principles. The only way left is however to endow with finances by diverse Islamic financial products. Excessive liquidity, potentially lower profits and the less risk involved are well considered when the LDR is low as compared to other banks that has a higher LDR. So the higher LDR indicates a negative picture of the firm, to have more risk as a result of which the bank may have to sell out few or many loans at a great loss. This ratio is calculated as: LDR = loan / deposits Year 2003 2004 2005 2006 2007 2008 2009 Mean S.D Islamic Bank 95.36% 89.61% 86.7% 78.47% 63.35% 62.24% 55.16% 75.80% 0.12413 Conventional Bank 73.85% 76.66% 69.9% 76.44% 70.89% 65.23% 64.25% 71.03% 0.03103 High loan to deposit ratio for Islamic bank compared with conventional banks during 2003-2006 indicates that Islamic bank has been comparatively less liquid. However, in 2007, Islamic bank LDR (63.35%) decreased below conventional banks (70.89%) turning Islamic bank into comparatively better liquidity position. LDR of Islamic bank decreased from 95.36% in 2003 to 63.35% in 2007. This overall declining trend in LDR of Islamic bank indicates the tendency of comparatively more increase in deposits than loans (financings) and further emphasizes improved liquidity position of Islamic bank. Compared with Islamic bank, LDR of conventional banks has been reasonably lower and floating between approximately 70% and 77%. Conventional bank LDR was 73.85% in 2003 which decreased to 70.89% in 2007. Although Mean LDR of Islamic bank 82.70% is higher than Mean LDR of conventional banks 73.55% but statistically there is no difference between the two means at 5% level of significance.