Chick-n-Gravy Dinner Line Essay

I. Executive summary Ann, the assistant manager, is going to investigate customers’ complaints of the supermarket regarding the frozen dinner. The majority of complaints centered on five defects: under-filled packages, a missing label, spills/mixed items, unacceptable taste, and improperly sealed packages. She collected data from inspecting approximately 800 frozen dinners and will analyze this information. II. Problem There are two problems 1. How will the defects be measured and what quality tools will be used? 2. What should Ana recommend to the manager after knowing the results? III. Objectives To determine the most numbered defect and the most defective product line with the use of quality tools. To address the solution to the manager. IV. SWOT Strengths Weaknesses Quickly handling customers’ complaints and analyze the problem. Frozen dinner is produced to give the customers quicker healthy meal for their busy life. Easy to focus the main problems in the production area. Many defective products have reached customers, affect to reputation Wasting resources such as time, money to produce a product not as expected Problems were found only from the customers, has no information causes the problem from the manufactory, machines, facilities†¦ Opportunities Threats Gain experienced the problem and improve it New processing method for higher quality Product Engineers or Quality department will be trained for better performance. Better planning and proper scheduling. Getting more customer’s satisfaction Other competitors would take advantages of that defect and introduce their products with higher quality. The company might need to eliminate that product and produce a new product if the customers don’t satisfy anymore V. Analyzing Data can be organized in Histograms (totals, morning/afternoon, and Line #1/Line #2) Defect The Pareto Chart There are 69 defects were found 22 occurrences unacceptable taste: the most frequent problem. The next is missing item with 18, and then spill/mixed, with 14 occurrences. The 14 of the 22 unacceptable taste were accounted for by Line #1 in the morning, and the remainder were Line #2, also in the morning. Line #1 exhibited a similar morning problem: all 11 occurrences were in the morning. Line #2 had all 7 of its occurrences in the afternoon. 10 of 14 occurrences of spill/mixed defects occurred in the afternoon. In the improper seal category, 10 out of 11 occurrences were for Line #2. VI. Recommendation The Pareto Chart shown Unacceptable Taste has the most number of defects. Ann should give the priority to investigate what problem caused Unacceptable Taste. These should be on the Product Engineers or Quality Control Center which must be put in investigation. For a proper inspection must be done every now and then. The Scatter Diagram above shows there is no relationship between the time the defects were observed and the number of defects. However, the occurrences were mostly in the morning with 42 occurrences (61%), so Ann also should to find out what might be causing taste problems in the morning on both lines. Step by step, after successfully reducing the Unacceptable Taste defect the Missing Item defect can be investigated. After the Missing Item defect is reduced, the Spill/Mixed defect can be investigated. And so on until all the 5 defects are reduced or completely removed. The company will need to train their employee overtime or hire new skilled employees. A Quality Control Engineer must be put in the position. Consider to upgrade the new machine to get higher quality of the product. Conduct another test to detect the source of the problem, the workers, equipment’s/machines or the facilities.

Race Roits Essay

In order to get beyond racism, we must first take account of there is no other way. And in order to treat some persons equally we must treat them differently† – Harry A Blackman. It shows how racial tension between African Americans and whites provoked the riot because they were treated differently because of their race. The Chicago race riot occurred July 29, 1919 and it lasted for 8 days and it was a turning point in Chicago’s history. The riot occurred because of racial tension between African Americans and whites. The Chicago race riot occurred July 29, 1919 and it lasted for 8 days and it was a turning point in Chicago’s history. The riot occurred because of racial tension between African Americans and whites. The riot was provoked by inequality, racial tension, and discrimination Prejudice, wars, and inventions have been going on since the beginning of time, but in the 19th century that is when those three things are the most significant because it changed the atmosphere of the United States. First, in the 19th century segregation was going on in the U. S, but more in the south than anywhere else. During the year of 1914 many of the states in the south required separated entrances for blacks and whites. Next, in the 1910’s the U. S just finished going into war. The decade was affected harshly because of the war. The war left the United States with storage of food, money and etc. Finally, the 1900’s brought new inventions to the United States. The First flight took place by the Wright brother, and Henry ford crated his first ford car model. Those inventions changed the way people took transportation making them get to their destination quicker. (Danzer, Alva, Krieger, Wilson, Woloch) Three street riots were East St. Louis, Springfield, and Chicago. These three riots happen because of racial tension and inequality between African Americans and whites. First, in 1917 a riot broke out in East St. Louis. The riot occurred because of racial tension. There was racial tension because the whites were on strike, so the owners decided to give the jobs to the African Americans. The whites were angered by this so they decided to take control and a riot broke out. Second, in 1908a riot broke out in Springfield because of inequality. The riot broke out in Springfield because an African American man was falsely accused of rape. Lastly, in 1919 a huge riot took place in Chicago. The riot occurred because of a death of an African American child. This riot was the biggest riot in Illinois history. So in conclusion, racial tension and inequality between African Americans and whites are the two main reasons why these riots occurred. (Encyclopedia of Chicago) The Division Street riot was a turning point on history because they showed how racial the government was, how violent and dangerous riots can be and how they riot can affect the atmosphere. First, in the Chicago riot there were cases were police would only arrest African Americans for having possessions of weapons and not whites. There was also the case that sparked the Chicago riot when a police refused to arrest the gang that killed Eugene Williams. †Chicago Race Riot of 1919†Ã¢â‚¬  The Chicago Race Riot of 1919†. That shows that the government was very racial towards African Americans when it came to arresting or anything else during the riot because the police didn’t help the African American man when Eugene Williams was drowning. Second, the riots showed how dangerous and violent they can become. In the Chicago riot it was so out of hand it wasn’t until the government had to call in the State Military to calm down the riot. Also in the East St. Louis riot the National Guards had to be called in to stop the white mobs. â€Å"Race Riot† â€Å" East St. Louis Race Riot: July 2, 1917†. This shows that the race riots became so out of hand that the Government had to call in the National Guards and the State Military because the riots were getting to out of control, and out of their reach and power. Lastly, the riots changed the atmosphere of the place where the riots occurred because it made many people suggested creating zoning laws to formally segregated housing in Chicago, or other restrictions preventing blacks to work in the same workplace as whites. Some African Americans were rejected by liberal white voters. The riots made the two races not get along even more because before the riots there were already racial tension between African Americans and whites. So in conclusion, the Division Street riot was a turning point on history because they showed how racial the government was, how violent and dangerous riots can be and how they riot can affect the atmosphere. Discrimination towards African American provoked the riot. First, when Tabitha C Wong writes â€Å"angry white workers lodged a formal complaint against black migration. After the meeting ended news of an attempted robbery of a white man by an armed black man began to circulate though the city. † This explains how in the East St. Louis riot whites were angered when African Americans took their jobs. â€Å"East St. Louis Race Riot: July 2, 1917† Second in the Springfield riot the trial, the woman told the judge that she was not raped by the two men. Another place this can be seen is when Springfield, Illinois race riot writes about† Mabel Hallem later recalled her accusative against George Richardson and Joe James when it was discovered she had probably fabricated the story to cover up an affair. † Second in the Springfield riot the trial for the African Americans were racially unfair. â€Å"The Accused: George Richardson† Third, Steven Essig writes about â€Å"the determination of many whites to deny African Americans equal opportunities in employment, housing and political representation has frequently resulted in sustained violent clashes. † Some whites didn’t want African American the same opportunity so they decided to deny them certain chances that whites would be able to do. (Encyclopedia of Chicago) Finally in the Springfield, East St. Louis, and Chicago riot dealt with discrimination which provoked the riot. Inequality provoked the riot making African Americans have fewer resources than whites. First, a great example can be found in The Slum and the Ghetto: Neighborhood Deterioration and Middle Class Reform when Philpott writes about how† they had no gas baths or toilets plumbing very bad: toilet leaks; bowl broken; leak in kitchen sink; (180). This shows that inequality between whites and African Americans made the African Americans have terrible living environment. Next, a great example can be found in The Slum and the Ghetto: Neighborhood Deterioration and Middle Class Reform when Philpott talks about how â€Å"a write once summed up the Negro question by saying â€Å"the North has principles and the South has the Negroes. †(146). It shows how the North (whites) had principles, and the South has Negroes (bad living environment). So it shows how because of inequality the African Americans didn’t have a good housing opportunity. Lastly, since schools were segregated whites had a better learning opportunity than African Americans. When the schools were segregated the African Americans did not have the same learning opportunity as white. The teachers were not able to teach the African American children how to read, or write. â€Å"Imprisoned or Teaching Free Blacks† So in conclusion, inequality provoked the riot making African Americans have terrible living environments, terrible housing opportunities, and terrible education. Racial tension provoked the riot making African Americans and whites not get along. First a great example of this can be found in â€Å"Gangs that came to rule in seats of power† when Kass writes about the â€Å"Hamburgs ignited the worst and deadliest race riot in Chicago’s history in 1919†. That shows how the riot started because of the racial tension between African Americans and whites because they didn’t get along. Second police were racial to African Americans. A great example of this can be found in â€Å"Chicago and its eight reasons† when the White writes about â€Å"in one case a colored man who was trailer for weapons, and whites were not trailed, and they were all together in a bunch†. This shows how the police didn’t want to arrest whites, but they were willing to arrest African Americans. It also proves that they were racist towards African Americans. Finally African Americans and Whites were segregated. A great example of this can be found when Essig writes about â€Å"an African American teenager who had crossed an invisible line at 29th Street separating customarily segregated â€Å"white† and â€Å"black† beaches†. That proves that white and black had separate things and they didn’t get along. So in conclusion, gangs racial tension, and segregation were part of the racial tension that provoked the riot. The Division Street riots had an impact history because led to African Americans getting better treatment later on in history. First, the Springfield riot brought about the NAACP. The NAACP stands for National Association for the Advancement of Colored People. The NAACP was created to ensure the political right, educational, and social economic equality of minority groups â€Å"Our Mission†. The NAACP fought for African Americans to have better treatment. The NAACP was created after the Springfield riot because they wanted to make sure that African Americans and other minority groups have the same rights as whites. Second, the NAACP had led up to greater things. The NAACP was a major part in the Civil Rights Movement with Martin Luther King as one of the leader â€Å" NAAC: 100 years of History†; leading African Americans through the Civil Rights movement taking them one step closer to integration. With Martin Luther king as one of the leaders of the NAACP and Civil Rights movement, with his dead and everything he did for the African Americans eventually led up to him being known as a great man, and making everyone in his time period including African Americans and Whites become segregated. Lastly, city officials organized the Chicago Commission on Race Relations to look into the cause of riots and find was to combat them. The Chicago Commission on Race Relations was created after the Chicago race riot. The Chicago Commission was a great source if information after the Chicago riot because they suggested several key issues including competition for jobs, thinking of ways to fix the problems. † The Chicago Race Riot of 1919† In conclusion, the Division Street Riots were turning points in history because the NAACP was formed, the NAACP led up to greater things and the Chicago Commission fixing race relations and their problems. The Chicago riot occurred July,27 1919 and it lasted for 8 days and it was a turning point in Chicago’s history. The occurred because of racial tension between African Americans and Whites. Inequality, racial tension, and discrimination provoked the riot. The Chicago Riot that lasted for 8 days and it was a turning point in History. Due to racial tension between African Americans and Whites a riot broke out . In Order to get beyond racism we ,must first take account of there is no other way. And in order to treat some persons equally we must first treat them differently- Harry A Blackman. Even though the Chicago riot left 38 people dead, it still was the most dangerous riot in Illinois History.

From the perspective of an operations manager in a large manufacturing Dissertation

From the perspective of an operations manager in a large manufacturing firm, present a case to the board of directors for adopti - Dissertation Example Elements of Lean Production 9 Figure 2.3.1.1. Six Sigma Implementation: An Overview 24 Executive Summary At present, products that have high levels of quality remains to be a prerequisite for any manufacturing company. Quality is the main focus of both lean manufacturing and Six Sigma as poor quality management often leads to waste and unproductive activities. On the other hand, appropriate management of quality significantly facilitates the manufacturing process, reducing safety buffers and identifying quality issues. Lean production emphasizes awareness of organizational culture, an organized workplace, standardization of work, flexibility in operations, empowerment of employees, control of materials, level production, and error proofing. Six Sigma also involves project definition, collecting measurements, analyzing process, correcting, designing, documenting and training, as well as controlling and verifying final outputs. The incorporation of both systems will allow a firm to ach ieve better outcomes than what either approach may not obtain. The combination of these two approaches can provide more favorable results compared to methods as it can incorporate both the human aspects (e.g. leadership, change in culture, customer focus) and process components (e.g. statistical thinking, process management), hence the need to examine the implementation of both systems. 1. Research Question From the perspective of an operations manager in a large manufacturing firm, present a case to the board of directors for adoption of Lean Production Systems and 6 Sigma Quality Management System. 1.1 Project Aims This current study aims to evaluate and present a business case with regards to the implementation of the lean production system as well as the Six Sigma quality system in an organization. 1.2 Project Objectives As such, the current study aims to address the following objectives: 1. Discuss the lean production system and Six Sigma quality system, and identify their effe cts on the organization; 2. Present case studies to examine and analyze the implementation of lean production and Six Sigma, highlighting their benefits; and 3. Develop a conclusion as well as recommendations based on the analysis and discussion of relevant data. 2. Literature Review 2.1 Introduction In an environment that is intensely competitive, the long-term success and survival of various organizations can depend on their ability to enhance quality and reduce costs in a continual manner (Montes, Moreno, and Molina 2003). Consequently, a higher level of productivity accomplished with fewer expenses has become an important component to become market leaders and sustain competitive advantage. For a number of successful manufacturers, integrating change into their production methods, such as the use of a leaner operation along with low inventory has been recognized as a fundamental practice, compared to traditional mass production that made use of a high inventory (Bai and Lee 2003 ). This suggests a clear message to employees- that goods should be produced with no defects in a timely manner and at an appropriate price. A shift towards lean production, however, can cause conflict that can hamper the implementatio

Air Pollution or Endocrine Disrupters Research Paper

Air Pollution or Endocrine Disrupters - Research Paper Example Such disruptions manifest among humans with most affectations in the male and female reproduction systems. The US EPA has set forth the screening of thousand of chemicals in order to screen endocrine disruptors before they are introduced to the human body. This screening program has proven to be problematic because of the bulk of chemicals which have to be screened. There are thousands of disruptors which have to be tested and testing them cannot adequately be carried out without incurring high costs which the government agencies and laboratories cannot afford. Nevertheless, these tests help establish clear guidelines and standards for government officials and the general public in the assessment of these products and their use by the general public. There are advantages and disadvantages to these tests; mostly these tests are advantageous because they help determine the health impact of chemicals to the general health of the population. The validation of chemicals and the investigat ion of the disruptor effects to the endocrine system can be determined through in vitro and in vivo assays. However, carrying out these tests can also be disadvantageous because of the practical considerations for testing. In effect, there is a need for the government to be more prudent and selective in the programs it would implement to evaluate these chemicals. Moreover, people also need to be more cautious about the chemicals they use because they can have negative impacts on both humans and animals. Introduction We are currently in the midst of an era where we are facing various environmental issues. The Global Warming phenomenon has been explained and explored by various experts and politicians as a major cause of concern to our planet because of its growing impact on all living things. One of these issues pertains to air pollution and their effects to our human physiology. Air pollution largely affects our respiratory system because chemical and air-borne toxins enter our body through inhalation. The respiratory system then helps to process the inhaled gases while exchanging carbon dioxide for oxygen which is crucial to our survival. This paper shall consider the role of air pollution in terms of chemical endocrine disruptors which mimic the hormone in our bodies. These chemicals seem to interfere with the actions of hormones – mimicking behavior and upsetting normal growth, behavior, and reproduction of wildlife. This paper shall explain how endocrine disruptors enter the cells. It shall evaluate if these compounds also harm people and how they affect the human body. This paper shall also discuss the pros and cons of the Environmental Protection Agency (EPA) screening thousands of chemicals that are used as endocrine disruptors before they are introduced to the human body. It shall discuss this student’s opinion on whether EPA is right in conducting the screening. This paper is being carried out in order to establish a clear and comprehens ive assessment of these endocrine disruptors and their impact on the human body. Body There are various chemical toxins which enter the lungs and the respiratory system and which affect the endocrine and the normal processes of our body. Some of these chemicals are known as endocrine disruptors. These chemicals are often seen in our daily use products, including â€Å"plastic bottles, metal food cans, detergents, flame retardants, food, toys, cosmetics, and pesticides†

Importance of Education Essay Example | Topics and Well Written Essays - 750 words - 1

Importance of Education - Essay Example Through their individual stories, Rodriguez and Rose confess how they manage to relieve themselves of discomfort in learning and struggle forward with passionate heart for studies the moment they came across instructors and academic settings which have altogether brought their mood to relish the learning experience. Both Rose and Rodriguez give account to how education has gradually shaped their immature attitude to adopt scholastic behavior upon deriving inspiration from educators who serve as their key models in the course of establishing the right habit and fascination to study. In the light of understanding â€Å"The Achievement of Desire†, Rodriguez attempts to make central the theme of invoking a comparative perception between his education at school and the degree of parental intervention that he expects to coincide with it. Rodriguez expresses that their family belongs to a working class and it is the state of his original culture and economy as being of Mexican descen t that prevents him at first to study English. However, since he becomes subjected to an interactive classroom environment facilitated by an articulate instructor, he gets accustomed to English as the medium of instruction and further loves reading to the extent that he locks himself away from all external cares at home. Apparently, the more that Rodriguez gets deeply engaged with curricular activities at school, the more that his parents get less involved in constituting his academic foundation despite the fact that he acquires a growing appreciation for the subjects. Because Rodriguez has found an ample sense of fulfillment in books and intellectual discourse in his class with an encouraging teacher, he comes to the realization that the lack of education of his hard-working parents forms a potential ground why whatever he learns at home occurs to have insignificant worth. As a consequence, he ends up with a student character who greatly looks up to the teaching figure of the forma l institution yet feels indifferent in communicating with his mother and his father, feeling embarrassed that they have not reached the same level of education that could have made his parents a non-academic community capable of enhancing his confidence over academic needs. On the other hand, one comprehends Rose in â€Å"I Just Wanna Be Average† as he acknowledges his confusion with the educational process of the vocational track and observes how other students like him are merely taking chances in passing their subjects, knowing that such status merely earns them an opportunity of landing a job with some economy of average value. Rose mentions particular names of batch-mates and faculty staff like Ted Richard, Dave Snyder, Ken Harvey, Brother Slattery, and Brother Clint with brief information in the process of his observation to determine how the system of education works and finds out that it is rather useless to study courses such as mathematics and physical science when students have very low inclination to these areas of learning especially if they cannot seem to designate connection of these subjects to the practical aspect of living. It turns out that unlike Rodriguez, Rose does not hold his parents accountable for the path he takes in education though they seem to have exhibited negligible attention on this matter for Rose admits in the story that they themselves fall short in

The brand perception impact of advertising for Starbucks Company Essay - 2

The brand perception impact of advertising for Starbucks Company - Essay Example Management judgment has also become an important factor as it determines the location scheme based on the information gathered from the consumer. According to Davies (2003), the information is mainly comprised of expectations for the products and what it could offer, putting an emphasis on its difference from competitors. These dynamic approaches have produced models that have been used for historical sales and marketing data, while Mathieson (2005) cited that the models shaped by the advertising media were also seen as effective maneuver for improving brand performance. According to (Wesly & Manatt 2008), in order to effectively position one brand in the market, a marketing executive needs to consider four fundamental changes that have serve as driving forces of brand positioning in the market. According to Wesly & Manatt (2008), these are: 1. The explosion of internet and other technology driven channels that resulted into numerous methods of improving one brand presence. One significant characteristic is that this change has increased the targeted audience, making the brand more known to a large number of people in a span of minutes or seconds. 2. Technology has also resulted into the increase of word of mouth. Technology presented a much efficient and faster way of sharing brand information such as the internet, wherein customers could shop online while talking to one of their friends via chat room. According to Bazerghi, Tarrant, Munro & Levine (n.d.), this method has significantly improved how brand presence is shaped as most people use the internet nowadays, and that there is about 40 percent of total market consumers that are into online shopping. Word of mouth specifically helps in the positioning of a brand in the market, as it directly helps in the pinpointing who are the customers that avail the product most of the time. 3. Business partnerships have opened new paths to increasing brand presence and

American History Essay Example | Topics and Well Written Essays - 2000 words

American History - Essay Example As one of the most consequential social movements in recent times, this research paper will explore the emergence of the U.S. Civil Rights movement and argue that without this movement, Barack Obama would not be president today. Seeking to address the emergence of the U.S. Civil Rights Movement, this research paper will explore a variety of questions and provide an in-depth theoretical analysis of the early stages of this important social movement. Why did the U.S. Civil Rights Movement emerge when it did? What factors account for the emergence of boycotts as a technique of protest? Was the U.S. Civil Rights Movement a spontaneous reaction to decades of oppression or was it organized and led by key leaders and organizations? These questions and many more will be explored in this comprehensive analysis of the US Civil Rights movement. This essay refers to Unit IV (1946-1976) and aims to provide a thorough and comprehensive analysis of one of the most important movements of the twentieth century, namely the US Civil Rights Movement. Social movements have historically been agents for social change and any analysis of a movement must account for its emergence. At the outset of the Civil Rights Movement, various campaigns were a response to the systematic discrimination which plagued the southern United States in the middle half of the twentieth century. This movement brought the plight of southern African-Americans to the forefront of the American consciousness and its successes can largely be measured in the legislative and normative changes which were a direct result of specific campaigns. As a whole, the Civil Rights Act of 1964, as well as the Supreme Court decision in 1956 striking down Alabama’s segregation laws, are substantive examples of the successes this movement has achieved in the political realms. Normatively speaking, black politicians in the southern United States

Evidence Base Assignment Example | Topics and Well Written Essays - 500 words

Evidence Base - Assignment Example The temperature of the day is 38 degrees. On the ground, there is snow that has reduced visibility slightly. The home looks quite disrupted as things have gone messy. To the right of the house is an Asphalt driveway. There is a white pick-up truck in the driveway. The truck has been parked at a close distance from the house. Their driveway is clear and does not have snow. The make of the truck is Chevy. Its year of registration is 2013. The registered owner’s name of the track is John Hilton. There is a wagon immediately next to the truck (Levine, 2003). Its year of registration is 2014. Registered owners name is Richard James. Aspect 1 is the right side of the house which has a side yard covered with snow. The side has a set of footprints. Aspect 3 is the rear side of the house that has an entry door into the rear. There is snow on the stairs that lead to the door. Aspect 2 is the left side of the house that is also covered with snow.

Hyperthyroid and Hypothyroid Disease Essay Example for Free

Hyperthyroid and Hypothyroid Disease Essay Hyperthyroid and Hypothyroid Disease Mischief just seems to follow wherever Dennis appears, but it is the product of good intentions, misdirected helpfulness, good-hearted generosity, and, possibly, an overactive thyroid The Merchant of Dennis the Menace.Hank Ketchum Additionally when comparing Hypothyroidism and Hyperthyroidism, it is useful to consider the symptoms, treatment, and life with the disease. The hidden truth about thyroid disease and what every person should know, how it affects not only the body, but also the affects that these diseases have on mental stability and memory is astounding. What everyone doesn’t know, but should know about these two diseases. Knowing more about the symptoms of thyroid disease is useful knowledge for any one person that has a family member with the disease or has concerns for them. Also thyroid disease can be hereditary, if a family member has the disease it is likely that another member in the family has it or will get it. Uncontrollable weight gain is of the most common symptoms, and most talked about for hypothyroid disease. What they don’t say is that losing the weight is next to impossible, and when the weight gain will stop. As one of the thyroid glands functions is to release hormones in the system to regulate the metabolism, if the metabolism isn’t regulated weight gain is inevitable, amongst this symptom are the uncommon symptoms of intolerance to cold, memory loss, dry skin, and hair loss, with hypothyroid disease the thyroid is no longer producing enough of this hormone for a healthy thyroid gland, compared to hyperthyroid the thyroid gland is over producing hormones, and this leads to uncontrollable weight loss even with a high caloric diet, weight loss will continue. The uncommon symptoms are depression, intolerance to heat, and again hair loss, however with both hypothyroid and hyperthyroid once treated these symptoms will start to lessen under a physician’s care. The treatment for hypothyroidism, depending on the severity of the disease, what form of hypothyroidism is diagnosed will be the deciding factor in how the disease is treated, for most the treatment is a Synthroid medication, how much medication is taken daily will depend on the TSH levels in the blood system, in order to find out what the TSH level is generally a blood test will revile the level, at the same time it will be recommended to continue having regular blood test ran as these levels can change frequently along with the amount of medication, having regular blood work done, along with regular visits to the treating physician will help with maintaining a healthy thyroid gland. However the treatment for hyperthyroid disease is completely different, still blood work will be needed to determine the over activity of the thyroids hormone release, since hyperthyroidism can be cured, furthermore this treatment will depend on the age of the person, their general health, and the condi tion of the thyroid gland. The most common treatment is an anti-hormone medication until the thyroid gland is functioning at normal hormones levels, in the same way treatment will be decided by the attending physician. Living with thyroid disease has its challenges, but is manageable as long as the individual follows the medical advice that has been given to them by their attending physician, although it is recommended to seek out a specialist in this area. Hypothyroid disease will require blood work maintence that should happen at a minimum of every six months to ensure the TSH levels are staying within the required levels, adjustments to the medication may be necessary until the right level is maintained for a minimum of six months or as recommended by the physician. During this time one will be overwhelmingly fatigued, but will get better as time goes on, and the treatment has been successful, there will be days when the body is full of energy on the other hand there will be days that more sleep is required than usual, getting out of bed will be a chore, bones and joints will be constantly sore and painful to the touch, nevertheless it is a manageable disease even though the treatment is time consuming, still it just will take perseverance and patience to make everything fall into place, also changing the daily diet, adding in super foods that can help with the thyroid function, such as eating more fresh fruits, grains, vegetables an d lean proteins in addition to changing regular cooking oil to coconut oil for all cooking that requires cooking oil. Coconut oil is better for thyroid  function, is doesn’t make food taste like coconuts, food won’t have that oil taste, is better for you, and will help elevate the thyroid in a more natural way. Cutting out white foods, such as sugar, white flour, dairy, and caffeine will also help with repairing the function of the thyroid gland. This will be a lifelong change for any individual that develops hypothyroidism since it cannot be reversed. The symptoms can change constantly; any change in the thyroid hormone will create changes in the symptoms for the better or worse, even though cutting out white foods and changing the diet, adding in super foods, medication cannot be skipped as it can have a negative effect on the system. Although living with hyperthyroidism in comparison is completely different, but changes will need to be made in the same way, such as learning to relax, take things in stride, at the same time look into taking up a meditation class, yoga class or get regular massages. Regular exercise is also recommended as doing any one of these daily regimens will help with the healing process of this disease. When the individual follows the treatment plan recommended and maintains a healthy balanced diet, hyperthyroid disease is reversible, and the thyroid will once again be thriving and healthy unlike hypothyroidism which cannot be reversed. Life is manageable with hypothyroid disease or hyperthyroid disease, once you have a clear understanding of the treatment, symptoms and how to live a healthy life with either of these chronic diseases. There is not enough getting done in the research industry to find the key to what is the cause of thyroid disease, and how we can create more viable medications to enhance the patient’s livelihood.

K to 12 in the Philippines Essay Example for Free

K to 12 in the Philippines Essay The Department of Education’s mission speaks clearly of the provision of a quality basic education that should be accessible to all and one which shall lay the foundation of a lifelong learning and self-actualization needed for citizenship at the local, national and global milieu. This mission can only be realized if indeed our educational system meets the challenge of the new millennium. Currently, educators just realized that our educational system has not been updated as to meeting the global competitiveness. It must be an acceptable fact that we have produced graduates who lack the skills, who cannot be recognized globally, and who do not possess entrepreneurial skills or the basic knowledge for higher education. I personally believe that it is high time that we start changing the educational system of the Philippines through the implementation of the K to 12 Basic Education Program. As a secondary school teacher, I have witnessed personally how our young generation graduates without having themselves equipped totally the basic knowledge they must have developed in the previous curriculum implemented in the schools. According to a survey, it is only the Philippines which has not adopted the 12 years basic education program in the whole of the Asia. This is the very reason why even if we have intelligent and globally competitive graduates, these graduates cannot still be recognized as professionals abroad because they lack the number of years to complete the basic education. Its implementation is actually a bold and a great challenge to curriculum developers and implementers (teachers) in our country. There are several problems that we have to overcome. But with everyone looking at one vision, holding hand in hand towards its successful implementation, lifting up each of our spirits – then the K to 12 implementation will have a successful journey. TERESA E. INDAC MAED-CMUGS

Islamic Banking Resistance to Securization

Islamic Banking Resistance to Securization Islamic Compliant ABSTRACT Receivables securitization is a vital financial instrument which has faced some resistance in the Islamic world with the exception of Malaysia with the result that its role in Islamic finance is as yet underdeveloped. The reasons behind this resistance are relatively ambiguous, and have not been thoroughly explored, as the existing Islamic literature offers only touches on the topic on a superficial level. This study traces the roots of the concerns of Islamic academics, opens them up to thorough discussion and proposes an objective way forward. While this study identifies three justifications behind the Islamic resistance to receivables securitization that relate to fiat money, gharar (risk), and usury, it could be argued that the key issue driving these objections is a misapplication of the Islamic rules governing gold and silver to fiat money. There is, however, a strong basis for arguing that fiat money is merely a ‘legal commodity and should be regulated by the Islamic commodity rules, removing the obstacle to the use of receivable securitization. Concerns regarding gharar (risk) and interest are valid but can be safely managed by developing an ethics-based form of securitization that protects against such risks as gambling or inability to deliver. In addition, securitization transactions could be structured on usury-free models. Finally, an attention should be drawn to the methodology used by Islamic intellectuals to apply Islamic rules to contemporary concepts. Methodologies need to be re-examined to ensure that they are true to the spirit of Islamic teaching. Introduction While it is still a relatively new concept, securitization has become a vital and effective instrument for raising funds, boosting liquidity, managing risk and allocating capital efficiently. Nevertheless, in a world where consumption has become a way of life and gambling has been raised to the status of a profession or an art form, securitization poses a silent but real threat to economies. The question has been raised as to whether or not securitization has played a role in the recent financial crisis.[1] It is argued that securitization encourages excessive borrowing, limits oversight by lenders and encourages dependence by borrowers, as well as creating what some call the illusion of liquidity.[2] Undoubtedly, the provision of loans and securitization facilitates the realization of individuals goals and creates investment opportunities. But due to the sensitivity of these tools, a disciplined and ethical environment is needed in order to protect against their misuse. This is, according to Hugo Bouleau, what is offered by the principles of Islamic finance[3]; indeed, Islam provides a comprehensive ethical way of life including commerce and investment. Islamic financial system solidly links between real assets, profits and risks. A financial transaction which does not provide these linkages may fail in the Shariah compliance test. However, assessing compliance is not always as simple as it may appear. While the foundations of the Islamic financial system were laid centuries ago, there are still divergences in scholar views concerning details, which has created serious challenges and generated debate in terms of identifying and understanding the gaps in applying the foundations of Islamic Shariah on the contemporary concepts. This has slowed the process of formulating a definite Islamic regulatory framework for financial industry particularly in a purely capitalist world. As one the most debatable issues under Islamic law; this study focuses on the Islamic regulatory framework of receivable securitization which is acknowledged by Shariah scholars and Islamic finance professionals as very important instrument, but at the same time as a critical and sensitive field. The framework of Shariah compliant receivable securitization is not yet firmly established due to the novelty of many economic and financial concepts, the lack of the Shariah scholars consensus on understanding and accommodating contemporary aspects, and, arguably, the expanded application of sadd al-dharai approach which, generally, means banning any permissible activity if it might lead to impressible result, contrary to the Shariah maxim the norm in regards transactions is that of permissibility which simply means that, any transaction, in principal, is permissible until a contradiction to Shariah is proven. This dilemma has given rise to two major directions of thought with regard to an Islamic perspective on receivable securitization; one is originated in Malaysia and the other, generally speaking, representing the rest of the Islamic world. As a result of these factors, receivable securitization is less developed in Islamic financial markets than in the conventional. In fact, individuals or institutions who seek to comply with Shariah rules can find themselves lost in a maze of contradicting views and fatwas (considered opinions of Shariah scholars). In response to this reality, this study provides an analytical examination of the status of Shariah compliant receivable securitization for the sake of identifying the roots of the gaps and challenges. After all, it is not a study specializing in Shariah but an academic and professional tracing, using a simple problem solving technique, of the realistic causes behind challenging receivable securitization under Islamic law. It is a vital step for a clear understanding of the problem toward proposing a rational way forward. The study addresses these issues in three chapters. Chapter One, An introductory platform, establishes the significance of the research topic, reviews the existing literature and demonstrates the value added by this study. Chapter Two, General Background and key underlying concepts, provides an introduction to the concepts of receivable securitization as well as the Islamic financial system in order to assist the reader in engaging with the ideas presented. Chapter Three, the Islamic regulatory framework for receivable securitization, provides a conceptual introduction to Shariah compliant securitization, and examines the roots of causes that behind challenging of the receivables securitization under Islamic law, where Chapter Four, Proposal for a way forward, provides a global proposal for embracing an ethical and disciplined Islamic compliant receivables securitization. Finally, the Conclusion summarizes the overall inputs and outputs of the study including its question and results. Chapter One: AN INTRODUCTORY PLATFORM 1.1 Why it matters Globalization is inescapable. The faiths, cultures and nations of the world are being gathered together into a single economy and trade pool. Despite the diversity of identities, economies are compelled to meet around the global table. At the end, the wisest strategy for any ideological group is to find a way to accommodate international developments while remaining true to its principles and convictions. Islam is the second largest religion of the world, with its followers estimated at 21% of the worlds population.[4] Muslim communities in historically non Muslim countries are growing rapidly. For instance, a 2001 census in the UK indicated a population of 1.591 million Muslims[5]. Although the next census will be in 2011, Richard Kerbaji reported that the growth of Muslim population is 10 times faster than that of other communities within the UK.[6] Independent of radical trends, the significance of Islam as a major world religion and the impact of Muslims as a community within the global context have made Islamic considerations a top priority on political and economic agendas within the international arena. Likewise, the global Muslim community cannot afford to be passive but must rationally and objectively engage with global changes and challenges. In a lecture given in 1993, H.R.H. the Prince of Wales stressed the fact that: †¦ The Islamic and Western world can no longer afford to stand apart from a common effort to solve their common problems†¦ We have to share experiences, to explain ourselves to each other.[7] This is, indeed, the reality of where we find ourselves today. And while interaction between civilizations and national and international factors is unavoidable, fundamental beliefs and inviolable principles will continue to exist which must be understood and respected. From finance perspective, while exact s are not available, broad agreement does exist that the size of the wealth and assets and the wide range of business networks of Muslims, both in Islamic countries and in the rest of the world, is significant. The demand for financial services which comply with Islamic law can be expected to increase tremendously, particularly following the recent global recession. It is estimated that there will be about 15 20 % annual growth in the Islamic financial products, with equity fund assets climbing to US $53 billion by 2010.[8] It is clear that a direct correlation exists: whenever the demand for banking products increases, banking debts multiply. This heightens credit risk and threatens the availability of capital and liquidity. Basel II, which represents the international consensus on capital standards, embraces securitization as an effective and helpful tool in this regard.[9] However, unless Muslim intellectuals invest considerable energy in developing clear and reliable regulatory frameworks which comply with Islamic law for the newborn concepts including securitization, Islamic banks will continue to experience difficulties in the areas of liquidity and risk management, and will fail to meet the requirements for international convergence. From another angle, the recent global economic crisis has exposed the fragility of capitalist economics. According to Sam Whimster â€Å"[c]apitalism itself is without morality†¦The finance capitalism of today has some startlingly irrational features and is no longer led by those who possess the requisite moral probity†.[10] As the need for more disciplined and ethical systems becomes increasingly apparent, the potential of Islamic finance as an alternative to conventional finance is gaining attention. As a result, broader awareness is developing in the international community regarding the features of Islamic finance and securitization. Toby Birch comments that the Islamic principles established by a desert-dwelling Bedouin fourteen hundred years ago embody the timeless wisdom which holds the key to the financial crises of today.[11] The recognition of the advantages of Islamic financial systems on objective and professional terms by non Muslim experts places a serious responsibility on Muslims experts and researchers to address and resolve the internal challenges which currently impede the development of Shariah compliant products, including receivable securitization. 1.2 Literature review It could be stated that a wealth of studies on Islamic finance can be found in libraries and on the online resources. In addition, Arabic and English literature typically have many publications on securitization within its conventional sense. However, studies focussing specifically on Shariah compliant receivable securitization, and its underlying challenges, are, noticeably few. The works which have, in fact, played the greatest role in shaping the dominant Islamic view on receivable securitization, are the many working papers that have been submitted at Islamic scholarly forums and conferences, particularly the annual conferences of the International Islamic Fiqh Academy, and the Islamic Fiqh Academy of Muslim World League. For instance, at its 19th conference in April 2009, the International Islamic Fiqh Academy discussed a group of working papers specifically focussing on, or closely related to, receivable securitization. However, by and large, the structures and approach of the papers were virtually identical, which is to be expected as the authors shared the same perspective on the same issue. In terms of its significance, securitization represents one of the most important innovations in the finance sector. It is, as Leon Kendall puts it, â€Å"changing the face of American and world of finance†.[12] This view is shared by many experts in the field, who see securitization as an essential component of the modern financial system. Vinod Kothari makes an identical statement to that of Kendall, and suggests that securitization is more than funding instrument that works beyond financial limitations.[13] This admiration for securitization can be attributed to the advantages which, according to Charles Ston and Anne Zissu, provides in alleviating balance sheet pressure,[14] transferring and fragmentizing credit risk, raising capital and securing liquidity. The importance of securitization is recognized by Islamic Intellectuals. AbdulBari Mushaal points out that receivable securitization is an important instrument in that it provides lenders rapid turnaround on their capital in order to re-inject it into investment and production operations.[15] Fuad Muhaisen identifies nine advantages provided by securitization, including its role in funding and financing privatization projects.[16] Furthermore, the working papers mentioned above which were submitted at the 19th conference of International Islamic Fiqh Academy demonstrate a common acknowledgment of the importance of receivable securitization in the Islamic world. Despite the worldwide recognition of the importance of securitization, another side of it could be recognized. Lawis Ranieri describes securitization as an adventure that involves a dark side, observing that it has contributed to destabilizing the thrift system and industry.[17] This represents one factor in the argument that securitization has been a contributing factor in the global credit crash. Thrift and credit are connected while they are also key components in the greater economic system. Securitization arguably promotes excessive credit creation,[18] encourages a culture of consumerism, and has contributed to the global financial crisis. Niall Ferguson argues that the crisis was caused by the rise and fall of securitized loans.[19] While this assertion deserves consideration, it is possible that it was not securitization but the absence of the ethics that rationalize its use, which was the problem. Islamic finance principles offer a framework with the capacity to fill this void. In his book ‘Islamic Finance Standards: Solving the Global Financial Crisis, Samir Kantaji provides a practical analysis of the global crisis and suggests that Islamic principles of finance provide the ethical and disciplined environment necessary to prevent such a future financial crash.[20] While the principles of Islamic finance were established more than fourteen hundred years ago, they do offer, as implied by Hugo Bouleau, solutions to todays banking problems.[21] The question, however, is whether Shariah scholars have the flexibility to apply these principles meaningfully to contemporary financial concepts, in general, and to securitization, in particular. The dominant philosophy of Shariah scholars is sadd al-dharai (banning any permissible activity if it might lead to an impressible result). This approach has been stressed by the International Islamic Fiqh Academy in its Resolution No. 92 (9/9), issued in April 1995.[22] However, many Islamic intellectuals oppose broadening the application of sadd al-dharai. Akhtar Zaiti emphasizes the contrasting Shariah maxim, â€Å"the norm in regards transactions in that of permissibility†, and the fact that the financial principles, maxims and frameworks provided by the Quran and Sunnah are not detailed because the finance industry and human interests vary over time. She argues that Muslims should be guided by this principle of permissibility as they engage with evolving financial concepts, including securitization, except in cases which present an obvious contradiction with the Quran and Sunna.[23] Similarly, Fuad Muhaisen argues that Islam clearly identifies which activities are prohibited, leaving room for innovation and development over the course of time, and that this is how contemporary financial concepts should be approached.[24] Regardless of the argument, what is certain is that the convictions of some Shariah scholars, coupled with the rapid development of finance and economic concepts and the impossibility of accurately foreseeing all of their potential implications, impede the development of Islamic financial systems. Studies addressing Shariah compliant receivable securitization typically roam around avoidance of Riba (usury) and Gharar (Risk), issues which are subdivided into more focused points such as profit-risk share, tangible asset connection and other underlying sub-issues. However, sale of loan is considered the cornerstone of employing receivable securitization, and is the subject of vigorous debate by Islamic intellectuals. Sale of loan was a topic of discussion at the 1998 International Islamic Fiqh Academy conference. The conference concluded that the sale of loan to a third party, whether at a current or deferred price, is strictly prohibited in Islam because it leads to Riba (usury).[25] But at its 2006 conference, International Islamic Fiqh Academy demonstrated greater flexibility and determined four permissible models for sale of Loan,[26] A similar resolution was issued by Islamic Fiqh Academy of MWL at its 2002 conference stating that some sale of loan models are prohibited because they lead to riba (usury) or Gharar (risk) of the inability of delivery, accordingly, receivable securitization is prohibited.[27] It should be noticed that loan in Islam could be goods, services, usufructs or receivables (cash flow), but none of the mentioned resolutions accepted the sale or securitization of receivables. There is no consensus regarding the prohibition of sale of loan. For example, in his book ‘The theory of loan in Islamic fiqh Ahmed Al-Hajj discusses the different viewpoints supporting and opposing sale of loan and concludes that it is permissible provided that delivery of the sale (repayment of the loan) is not possible[28]. This approach has been embraced by the Malaysian Securities Commission Shariah Advisory Council since 1996 which opened the door wide to receivable securitization in this Islamic country[29], which is, according to Rashid Al-Khan, has been widely criticized by many Middle Eastern scholars.[30] Furthermore, Saiful Rosly and Mahmood Sanusi point out that trading of Islamic bond structured on a sale of loan basis in Malaysia has been found impermissible by the majority of Shariah scholars.[31] Apparently, there is a clear disagreement over the key issues involved in achieving effective Shariah compliant receivable securitization. However, this does not mean that Shariah compliant receivable securitization cannot be utilized until the dilemma is resolved. Nor does it mean that the current position of Shariah scholars is final. The possibility always exists of renegotiating the interfaces that are developed between Shariah and developing technical concepts. The literature already includes a number of publications which discuss the foundational concepts of Islamic finance and attempt to develop an Islamic framework for securitization which brings together Islamic principles and finance innovation. But gaps remain in terms of scope and approaches of studies. To put differently, the existing Islamic literature offers only a superficial and indirect exploration of the reasons for which the permissibility of receivable securitization has been challenged under Islamic law, and handles this discussion within previous immature viewpoints. 1.3 Scope and significance of the study This study provides a panoramic view of the current situation of receivable securitization within the Islamic law. It discusses the dominant Islamic intellectuals approach that banes it, and tackles the question of what are the realistic reasons of challenging receivables securitization under Islamic law. In order to add value, this study is a digging deeper into the roots of the argument. Using a simple problem solving techniques, it traces those roots to out what is, precisely, reason behind the resistance of Shariah scholar to accepting receivables securitization. Differently, this study openly discusses the issues, and it is completely built of the maxim that in principal, any transaction is permissible until a contradiction to Shariah is proven. Furthermore, the study reflects rational viewpoint regarding riba (usury) concept which has been unreasonably exaggerated over the time. Notwithstanding, this study must not be read as a revolt against any of the Islamic schools of thought or organizations, but an objective attempt to re-pull the attention to realistic causes of prohibition of receivables securitization under Islamic law. Overall, this study helps to identify areas where religious perspectives and technical practice do not yet interface with regard to receivable securitization, and spells out the reforms needed to the approach of Islamic intellectuals methodology in terms of Islamic financing in general and securitization in particular. Chapter Two: General Background and Key Underlying Concepts 2.1 Introduction In order to understand the roots of the challenges of Islamic compliant receivable securitization, this chapter highlights key aspects of securitization as created and developed by the conventional finance industry and, on the other hand, the related key aspects of Shariah and Islamic finance. 2.2 An introduction to Securitization 2.2.1 Origin of Securitization While Vinod Kothari states that securitization has a two hundred year history in Denmark and suggests that therefore Denmark should be considered its birthplace, he admits the fact that securitization as a structured finance instrument was developed in the US.[32] Indeed, credit for the innovation of securitization is due the US government which initiated the first mortgage-backed securitization transaction through the Government National Mortgage Association (GNMA) in 1970.[33] The introduction of securitization was promoted by a severe shortage of liquidity which caused by a withdrawal of traditional lenders who turned to more profitable investments.[34] However, the perception of securitization as a magic wand that could make fund and liquidity problems disappear, together with a credit crush, dramatically expanded the usage of securitization. In the years since, extensive experience and lessons have been, and are being, learned in tailoring and structuring securitization transactions. 2.2.2 Concept of Securitization Little documentation exists regarding the origin of the term ‘securitization. Lewis Ranieri claimed that this term was not a real word, and it was used for the first time by the Wall street Journal in 1977.[35] As an emerging concept, therefore, securitization does not yet have a universally accepted definition. According to Leon Kendall, securitization is a process of packaging individual loans and other debt instruments, converting the package into a security or securities, and enhancing their credit status or rating to further their sale to third-party investors.[36] While this definition describes the process of securitization, Peter Jeffrey focuses on the objective of securitization and suggests that in its simplest form it is a secured borrowing, whereby a company borrows against an asset or group of assets.[37] This is exactly what was concluded by a United Kingdom VAT Duties Tribunal in Capital One Bank (Europe) Plc v Revenue and Customs [2005] when it stated that secu ritization is â€Å"nothing more than a sophisticated means of borrowing money†.[38] From a different angle, Vinod Kothary called attention to the philosophy of securitization and pointed out that it is in its widest sense is every process that converts financial relation into a transaction. However, he defined the term asset securitization as a device of structured financing in which an entity seeks to pool together its interest in identifiable cash flows over time, transfer the same to investors either with or without the support of further collaterals, and thereby achieve the purpose of financing.[39] Securitization can be also defined as â€Å"The transformation of a loan portfolio or other assets such as property into securities that can be sold in the primary market and traded in the secondary market†.[40] Another definition that is ascribed to Ernst and Young states that securitization is: â€Å"Any transaction under which a securitization vehicle directly or indirectly acquires receivables or bears risk associated with commitments taken or activities carried out by third parties and issues in exchange securities whose return is directly linked to the risks borne†.[41] While clearly many definitions exist for the terms ‘securitization and ‘asset securitization'[42] which describe them in either the simplest or broadest terms and approach the concept from various perspectives, all concur that securitization is a process of packaging and transforming a specific bulk of assets through a special purpose vehicle(s) into marketable securities for the purpose of liquidity and/or risk management. A key point to be addressed here is that the term ‘asset securitization is commonly used to describe the process of securitizing financial claims or receivables, notwithstanding the fact that balance sheets include other types of assets that can be subject to securitization, particularly under Islamic law (i.e. lease structure). In this context, the verb securitize, according to the Concise Oxford Dictionary means to convert an asset, specially a loan, into marketable securities, typically for the purpose of raising cash.[43] This confirms the fact that other assets can be securitized but accounts receivable and loans are the most common type of securitizable assets, perhaps because they constitute the bulk of the assets of financial firms and credit institutions. 2.2.3 Structure of and Parties to Receivable Securitization Receivable securitization can be structured on a typical funded, synthetic or collateralized debt obligation (CDO) structure.[44] However, in order to avoid dispersion and complexity; the focus here will be on the typical funded structure. A typical funded structure of receivables securitization (see 1) basically involves borrowers, an originator, an issuer and investors. These form the backbone of a typical funded securitization structure; nevertheless, a credit enhancer, rating agency and an underwriter/lead manager are also considered key players for the sake of regulatory compliance and in order to introduce an attractive opportunity for the targeted investors. Borrowers: Given that receivable securitization is a process that deals with loans; borrowers are considered the cornerstone of a securitization transaction. As they are responsible for paying the underlying loans, structuring a receivable securitization must take into account their credit capability. Some regulatory frameworks may require their consent. Originator: In receivable securitization, lenders or creditors are usually the originators of a securitization transaction. The originator can be a governmental agency or any financial, credit or investment institution such as a commercial bank, investment bank or captive finance company. The role of the originator does not start only at the point of the agreement with the SPV, but begins earlier,[45] specifically, from the moment that the originator recognizes the need for, or the feasibility of, securitizing a bulk of receivables. The origination process includes many steps involving, but not limited to, planning and structuring the securitization transaction, identifying and segregating the assets, notifying the borrowers, establishing the SPV(s), concluding the consultation and services agreements and handling any mediation activities between the borrowers and the SPV. Furthermore, the originator might continue to play the role of ‘servicer, providing, among other services, customer services, payment and collection services as well as default management and collateral liquidation.[46] An issuer: The key point of the securitization process is the issuance of the securities that resulted from pooling and transforming the assets. This issuance is usually performed by an SPV, which is normally a new and independent entity established for the purpose of taking over the position of the originator as a lender or creditor in the credit relationship. In other words, once a securitization takes place, borrowers no longer have a credit relationship with the originator, but rather with the SPV. A rating agency: For a successful securitization, a good rating of the credit quality of the transaction should be secured from a very well-established rating agency. Professional rating agencies usually provide a professional evaluation of the type and quality of the underlying assets, including any related risks.[47] Credit enhancer: Credit enhancement is a very important process for attracting investors to be involved in a securitization transaction. It provides them with a certain level of protection in the event that the originator fails to meet his commitments or the cash flows for the securitized assets are insufficient to cover the projected return of the securities. Another point, which will be discussed further below, is that credit enhancement can be secured internally through guarantees provided by the originator or on the basis of the quality of the securitized assets. Having noted that, a credit enhancer appears as a party in a securitization structure only if the credit enhancement is provided by a third party enhancer (i.e. by a letter of credit). In such a case, the enhancer must have a high credit rating in order to secure the confidence of the investors. Underwriter / lead manager: The offering of the issued securities public or to private investors is usually handled by a professional firm, typically, a bank which plays the role of underwriter in the securitization process. The key role of the underwriter is to manage the process of selling the securities to investors in order to achieve the securitizations targets. It should be noted that the trend among financial professionals today is to call this party a ‘lead manager, rather than an ‘underwriter, because the guarantee provided is, in principal, a commitment to make every effort to ensure that the securities are sold. There is, however, no guarantee in terms of the prices and quantity of the securities sold.[48] Investors: The ultimate objective of the securitization process is to transfer risk to investors and/or to generate liquidity from them. A securitization transaction may target specific kinds of investors through a private placement process or open it to the public. In both cases, the key investors are usually fund managers, pension funds, governmental funds, commercial banks and insurance companies.[49] 2.2.4 Process of Securitization It goes without saying that the securitization process involves detailed, complex and overlapping steps. In this paper, however, the focus is on the key steps which have strong significance in terms of the research objectives, namely, the packaging and transferring of the underlying receivables as well as the issuance of securities. 2.2.4.1 Packaging the Underlying Receivables The most vital step in a securitization transaction is packaging the underlying assets. This begins with identifying the targeted receivables, which may include any assets that generate cash flows over a period of time, such as mortgages, credit cards loans, consumers loans, corporate loans, auto loans, s Islamic Banking Resistance to Securization Islamic Banking Resistance to Securization Islamic Compliant ABSTRACT Receivables securitization is a vital financial instrument which has faced some resistance in the Islamic world with the exception of Malaysia with the result that its role in Islamic finance is as yet underdeveloped. The reasons behind this resistance are relatively ambiguous, and have not been thoroughly explored, as the existing Islamic literature offers only touches on the topic on a superficial level. This study traces the roots of the concerns of Islamic academics, opens them up to thorough discussion and proposes an objective way forward. While this study identifies three justifications behind the Islamic resistance to receivables securitization that relate to fiat money, gharar (risk), and usury, it could be argued that the key issue driving these objections is a misapplication of the Islamic rules governing gold and silver to fiat money. There is, however, a strong basis for arguing that fiat money is merely a ‘legal commodity and should be regulated by the Islamic commodity rules, removing the obstacle to the use of receivable securitization. Concerns regarding gharar (risk) and interest are valid but can be safely managed by developing an ethics-based form of securitization that protects against such risks as gambling or inability to deliver. In addition, securitization transactions could be structured on usury-free models. Finally, an attention should be drawn to the methodology used by Islamic intellectuals to apply Islamic rules to contemporary concepts. Methodologies need to be re-examined to ensure that they are true to the spirit of Islamic teaching. Introduction While it is still a relatively new concept, securitization has become a vital and effective instrument for raising funds, boosting liquidity, managing risk and allocating capital efficiently. Nevertheless, in a world where consumption has become a way of life and gambling has been raised to the status of a profession or an art form, securitization poses a silent but real threat to economies. The question has been raised as to whether or not securitization has played a role in the recent financial crisis.[1] It is argued that securitization encourages excessive borrowing, limits oversight by lenders and encourages dependence by borrowers, as well as creating what some call the illusion of liquidity.[2] Undoubtedly, the provision of loans and securitization facilitates the realization of individuals goals and creates investment opportunities. But due to the sensitivity of these tools, a disciplined and ethical environment is needed in order to protect against their misuse. This is, according to Hugo Bouleau, what is offered by the principles of Islamic finance[3]; indeed, Islam provides a comprehensive ethical way of life including commerce and investment. Islamic financial system solidly links between real assets, profits and risks. A financial transaction which does not provide these linkages may fail in the Shariah compliance test. However, assessing compliance is not always as simple as it may appear. While the foundations of the Islamic financial system were laid centuries ago, there are still divergences in scholar views concerning details, which has created serious challenges and generated debate in terms of identifying and understanding the gaps in applying the foundations of Islamic Shariah on the contemporary concepts. This has slowed the process of formulating a definite Islamic regulatory framework for financial industry particularly in a purely capitalist world. As one the most debatable issues under Islamic law; this study focuses on the Islamic regulatory framework of receivable securitization which is acknowledged by Shariah scholars and Islamic finance professionals as very important instrument, but at the same time as a critical and sensitive field. The framework of Shariah compliant receivable securitization is not yet firmly established due to the novelty of many economic and financial concepts, the lack of the Shariah scholars consensus on understanding and accommodating contemporary aspects, and, arguably, the expanded application of sadd al-dharai approach which, generally, means banning any permissible activity if it might lead to impressible result, contrary to the Shariah maxim the norm in regards transactions is that of permissibility which simply means that, any transaction, in principal, is permissible until a contradiction to Shariah is proven. This dilemma has given rise to two major directions of thought with regard to an Islamic perspective on receivable securitization; one is originated in Malaysia and the other, generally speaking, representing the rest of the Islamic world. As a result of these factors, receivable securitization is less developed in Islamic financial markets than in the conventional. In fact, individuals or institutions who seek to comply with Shariah rules can find themselves lost in a maze of contradicting views and fatwas (considered opinions of Shariah scholars). In response to this reality, this study provides an analytical examination of the status of Shariah compliant receivable securitization for the sake of identifying the roots of the gaps and challenges. After all, it is not a study specializing in Shariah but an academic and professional tracing, using a simple problem solving technique, of the realistic causes behind challenging receivable securitization under Islamic law. It is a vital step for a clear understanding of the problem toward proposing a rational way forward. The study addresses these issues in three chapters. Chapter One, An introductory platform, establishes the significance of the research topic, reviews the existing literature and demonstrates the value added by this study. Chapter Two, General Background and key underlying concepts, provides an introduction to the concepts of receivable securitization as well as the Islamic financial system in order to assist the reader in engaging with the ideas presented. Chapter Three, the Islamic regulatory framework for receivable securitization, provides a conceptual introduction to Shariah compliant securitization, and examines the roots of causes that behind challenging of the receivables securitization under Islamic law, where Chapter Four, Proposal for a way forward, provides a global proposal for embracing an ethical and disciplined Islamic compliant receivables securitization. Finally, the Conclusion summarizes the overall inputs and outputs of the study including its question and results. Chapter One: AN INTRODUCTORY PLATFORM 1.1 Why it matters Globalization is inescapable. The faiths, cultures and nations of the world are being gathered together into a single economy and trade pool. Despite the diversity of identities, economies are compelled to meet around the global table. At the end, the wisest strategy for any ideological group is to find a way to accommodate international developments while remaining true to its principles and convictions. Islam is the second largest religion of the world, with its followers estimated at 21% of the worlds population.[4] Muslim communities in historically non Muslim countries are growing rapidly. For instance, a 2001 census in the UK indicated a population of 1.591 million Muslims[5]. Although the next census will be in 2011, Richard Kerbaji reported that the growth of Muslim population is 10 times faster than that of other communities within the UK.[6] Independent of radical trends, the significance of Islam as a major world religion and the impact of Muslims as a community within the global context have made Islamic considerations a top priority on political and economic agendas within the international arena. Likewise, the global Muslim community cannot afford to be passive but must rationally and objectively engage with global changes and challenges. In a lecture given in 1993, H.R.H. the Prince of Wales stressed the fact that: †¦ The Islamic and Western world can no longer afford to stand apart from a common effort to solve their common problems†¦ We have to share experiences, to explain ourselves to each other.[7] This is, indeed, the reality of where we find ourselves today. And while interaction between civilizations and national and international factors is unavoidable, fundamental beliefs and inviolable principles will continue to exist which must be understood and respected. From finance perspective, while exact s are not available, broad agreement does exist that the size of the wealth and assets and the wide range of business networks of Muslims, both in Islamic countries and in the rest of the world, is significant. The demand for financial services which comply with Islamic law can be expected to increase tremendously, particularly following the recent global recession. It is estimated that there will be about 15 20 % annual growth in the Islamic financial products, with equity fund assets climbing to US $53 billion by 2010.[8] It is clear that a direct correlation exists: whenever the demand for banking products increases, banking debts multiply. This heightens credit risk and threatens the availability of capital and liquidity. Basel II, which represents the international consensus on capital standards, embraces securitization as an effective and helpful tool in this regard.[9] However, unless Muslim intellectuals invest considerable energy in developing clear and reliable regulatory frameworks which comply with Islamic law for the newborn concepts including securitization, Islamic banks will continue to experience difficulties in the areas of liquidity and risk management, and will fail to meet the requirements for international convergence. From another angle, the recent global economic crisis has exposed the fragility of capitalist economics. According to Sam Whimster â€Å"[c]apitalism itself is without morality†¦The finance capitalism of today has some startlingly irrational features and is no longer led by those who possess the requisite moral probity†.[10] As the need for more disciplined and ethical systems becomes increasingly apparent, the potential of Islamic finance as an alternative to conventional finance is gaining attention. As a result, broader awareness is developing in the international community regarding the features of Islamic finance and securitization. Toby Birch comments that the Islamic principles established by a desert-dwelling Bedouin fourteen hundred years ago embody the timeless wisdom which holds the key to the financial crises of today.[11] The recognition of the advantages of Islamic financial systems on objective and professional terms by non Muslim experts places a serious responsibility on Muslims experts and researchers to address and resolve the internal challenges which currently impede the development of Shariah compliant products, including receivable securitization. 1.2 Literature review It could be stated that a wealth of studies on Islamic finance can be found in libraries and on the online resources. In addition, Arabic and English literature typically have many publications on securitization within its conventional sense. However, studies focussing specifically on Shariah compliant receivable securitization, and its underlying challenges, are, noticeably few. The works which have, in fact, played the greatest role in shaping the dominant Islamic view on receivable securitization, are the many working papers that have been submitted at Islamic scholarly forums and conferences, particularly the annual conferences of the International Islamic Fiqh Academy, and the Islamic Fiqh Academy of Muslim World League. For instance, at its 19th conference in April 2009, the International Islamic Fiqh Academy discussed a group of working papers specifically focussing on, or closely related to, receivable securitization. However, by and large, the structures and approach of the papers were virtually identical, which is to be expected as the authors shared the same perspective on the same issue. In terms of its significance, securitization represents one of the most important innovations in the finance sector. It is, as Leon Kendall puts it, â€Å"changing the face of American and world of finance†.[12] This view is shared by many experts in the field, who see securitization as an essential component of the modern financial system. Vinod Kothari makes an identical statement to that of Kendall, and suggests that securitization is more than funding instrument that works beyond financial limitations.[13] This admiration for securitization can be attributed to the advantages which, according to Charles Ston and Anne Zissu, provides in alleviating balance sheet pressure,[14] transferring and fragmentizing credit risk, raising capital and securing liquidity. The importance of securitization is recognized by Islamic Intellectuals. AbdulBari Mushaal points out that receivable securitization is an important instrument in that it provides lenders rapid turnaround on their capital in order to re-inject it into investment and production operations.[15] Fuad Muhaisen identifies nine advantages provided by securitization, including its role in funding and financing privatization projects.[16] Furthermore, the working papers mentioned above which were submitted at the 19th conference of International Islamic Fiqh Academy demonstrate a common acknowledgment of the importance of receivable securitization in the Islamic world. Despite the worldwide recognition of the importance of securitization, another side of it could be recognized. Lawis Ranieri describes securitization as an adventure that involves a dark side, observing that it has contributed to destabilizing the thrift system and industry.[17] This represents one factor in the argument that securitization has been a contributing factor in the global credit crash. Thrift and credit are connected while they are also key components in the greater economic system. Securitization arguably promotes excessive credit creation,[18] encourages a culture of consumerism, and has contributed to the global financial crisis. Niall Ferguson argues that the crisis was caused by the rise and fall of securitized loans.[19] While this assertion deserves consideration, it is possible that it was not securitization but the absence of the ethics that rationalize its use, which was the problem. Islamic finance principles offer a framework with the capacity to fill this void. In his book ‘Islamic Finance Standards: Solving the Global Financial Crisis, Samir Kantaji provides a practical analysis of the global crisis and suggests that Islamic principles of finance provide the ethical and disciplined environment necessary to prevent such a future financial crash.[20] While the principles of Islamic finance were established more than fourteen hundred years ago, they do offer, as implied by Hugo Bouleau, solutions to todays banking problems.[21] The question, however, is whether Shariah scholars have the flexibility to apply these principles meaningfully to contemporary financial concepts, in general, and to securitization, in particular. The dominant philosophy of Shariah scholars is sadd al-dharai (banning any permissible activity if it might lead to an impressible result). This approach has been stressed by the International Islamic Fiqh Academy in its Resolution No. 92 (9/9), issued in April 1995.[22] However, many Islamic intellectuals oppose broadening the application of sadd al-dharai. Akhtar Zaiti emphasizes the contrasting Shariah maxim, â€Å"the norm in regards transactions in that of permissibility†, and the fact that the financial principles, maxims and frameworks provided by the Quran and Sunnah are not detailed because the finance industry and human interests vary over time. She argues that Muslims should be guided by this principle of permissibility as they engage with evolving financial concepts, including securitization, except in cases which present an obvious contradiction with the Quran and Sunna.[23] Similarly, Fuad Muhaisen argues that Islam clearly identifies which activities are prohibited, leaving room for innovation and development over the course of time, and that this is how contemporary financial concepts should be approached.[24] Regardless of the argument, what is certain is that the convictions of some Shariah scholars, coupled with the rapid development of finance and economic concepts and the impossibility of accurately foreseeing all of their potential implications, impede the development of Islamic financial systems. Studies addressing Shariah compliant receivable securitization typically roam around avoidance of Riba (usury) and Gharar (Risk), issues which are subdivided into more focused points such as profit-risk share, tangible asset connection and other underlying sub-issues. However, sale of loan is considered the cornerstone of employing receivable securitization, and is the subject of vigorous debate by Islamic intellectuals. Sale of loan was a topic of discussion at the 1998 International Islamic Fiqh Academy conference. The conference concluded that the sale of loan to a third party, whether at a current or deferred price, is strictly prohibited in Islam because it leads to Riba (usury).[25] But at its 2006 conference, International Islamic Fiqh Academy demonstrated greater flexibility and determined four permissible models for sale of Loan,[26] A similar resolution was issued by Islamic Fiqh Academy of MWL at its 2002 conference stating that some sale of loan models are prohibited because they lead to riba (usury) or Gharar (risk) of the inability of delivery, accordingly, receivable securitization is prohibited.[27] It should be noticed that loan in Islam could be goods, services, usufructs or receivables (cash flow), but none of the mentioned resolutions accepted the sale or securitization of receivables. There is no consensus regarding the prohibition of sale of loan. For example, in his book ‘The theory of loan in Islamic fiqh Ahmed Al-Hajj discusses the different viewpoints supporting and opposing sale of loan and concludes that it is permissible provided that delivery of the sale (repayment of the loan) is not possible[28]. This approach has been embraced by the Malaysian Securities Commission Shariah Advisory Council since 1996 which opened the door wide to receivable securitization in this Islamic country[29], which is, according to Rashid Al-Khan, has been widely criticized by many Middle Eastern scholars.[30] Furthermore, Saiful Rosly and Mahmood Sanusi point out that trading of Islamic bond structured on a sale of loan basis in Malaysia has been found impermissible by the majority of Shariah scholars.[31] Apparently, there is a clear disagreement over the key issues involved in achieving effective Shariah compliant receivable securitization. However, this does not mean that Shariah compliant receivable securitization cannot be utilized until the dilemma is resolved. Nor does it mean that the current position of Shariah scholars is final. The possibility always exists of renegotiating the interfaces that are developed between Shariah and developing technical concepts. The literature already includes a number of publications which discuss the foundational concepts of Islamic finance and attempt to develop an Islamic framework for securitization which brings together Islamic principles and finance innovation. But gaps remain in terms of scope and approaches of studies. To put differently, the existing Islamic literature offers only a superficial and indirect exploration of the reasons for which the permissibility of receivable securitization has been challenged under Islamic law, and handles this discussion within previous immature viewpoints. 1.3 Scope and significance of the study This study provides a panoramic view of the current situation of receivable securitization within the Islamic law. It discusses the dominant Islamic intellectuals approach that banes it, and tackles the question of what are the realistic reasons of challenging receivables securitization under Islamic law. In order to add value, this study is a digging deeper into the roots of the argument. Using a simple problem solving techniques, it traces those roots to out what is, precisely, reason behind the resistance of Shariah scholar to accepting receivables securitization. Differently, this study openly discusses the issues, and it is completely built of the maxim that in principal, any transaction is permissible until a contradiction to Shariah is proven. Furthermore, the study reflects rational viewpoint regarding riba (usury) concept which has been unreasonably exaggerated over the time. Notwithstanding, this study must not be read as a revolt against any of the Islamic schools of thought or organizations, but an objective attempt to re-pull the attention to realistic causes of prohibition of receivables securitization under Islamic law. Overall, this study helps to identify areas where religious perspectives and technical practice do not yet interface with regard to receivable securitization, and spells out the reforms needed to the approach of Islamic intellectuals methodology in terms of Islamic financing in general and securitization in particular. Chapter Two: General Background and Key Underlying Concepts 2.1 Introduction In order to understand the roots of the challenges of Islamic compliant receivable securitization, this chapter highlights key aspects of securitization as created and developed by the conventional finance industry and, on the other hand, the related key aspects of Shariah and Islamic finance. 2.2 An introduction to Securitization 2.2.1 Origin of Securitization While Vinod Kothari states that securitization has a two hundred year history in Denmark and suggests that therefore Denmark should be considered its birthplace, he admits the fact that securitization as a structured finance instrument was developed in the US.[32] Indeed, credit for the innovation of securitization is due the US government which initiated the first mortgage-backed securitization transaction through the Government National Mortgage Association (GNMA) in 1970.[33] The introduction of securitization was promoted by a severe shortage of liquidity which caused by a withdrawal of traditional lenders who turned to more profitable investments.[34] However, the perception of securitization as a magic wand that could make fund and liquidity problems disappear, together with a credit crush, dramatically expanded the usage of securitization. In the years since, extensive experience and lessons have been, and are being, learned in tailoring and structuring securitization transactions. 2.2.2 Concept of Securitization Little documentation exists regarding the origin of the term ‘securitization. Lewis Ranieri claimed that this term was not a real word, and it was used for the first time by the Wall street Journal in 1977.[35] As an emerging concept, therefore, securitization does not yet have a universally accepted definition. According to Leon Kendall, securitization is a process of packaging individual loans and other debt instruments, converting the package into a security or securities, and enhancing their credit status or rating to further their sale to third-party investors.[36] While this definition describes the process of securitization, Peter Jeffrey focuses on the objective of securitization and suggests that in its simplest form it is a secured borrowing, whereby a company borrows against an asset or group of assets.[37] This is exactly what was concluded by a United Kingdom VAT Duties Tribunal in Capital One Bank (Europe) Plc v Revenue and Customs [2005] when it stated that secu ritization is â€Å"nothing more than a sophisticated means of borrowing money†.[38] From a different angle, Vinod Kothary called attention to the philosophy of securitization and pointed out that it is in its widest sense is every process that converts financial relation into a transaction. However, he defined the term asset securitization as a device of structured financing in which an entity seeks to pool together its interest in identifiable cash flows over time, transfer the same to investors either with or without the support of further collaterals, and thereby achieve the purpose of financing.[39] Securitization can be also defined as â€Å"The transformation of a loan portfolio or other assets such as property into securities that can be sold in the primary market and traded in the secondary market†.[40] Another definition that is ascribed to Ernst and Young states that securitization is: â€Å"Any transaction under which a securitization vehicle directly or indirectly acquires receivables or bears risk associated with commitments taken or activities carried out by third parties and issues in exchange securities whose return is directly linked to the risks borne†.[41] While clearly many definitions exist for the terms ‘securitization and ‘asset securitization'[42] which describe them in either the simplest or broadest terms and approach the concept from various perspectives, all concur that securitization is a process of packaging and transforming a specific bulk of assets through a special purpose vehicle(s) into marketable securities for the purpose of liquidity and/or risk management. A key point to be addressed here is that the term ‘asset securitization is commonly used to describe the process of securitizing financial claims or receivables, notwithstanding the fact that balance sheets include other types of assets that can be subject to securitization, particularly under Islamic law (i.e. lease structure). In this context, the verb securitize, according to the Concise Oxford Dictionary means to convert an asset, specially a loan, into marketable securities, typically for the purpose of raising cash.[43] This confirms the fact that other assets can be securitized but accounts receivable and loans are the most common type of securitizable assets, perhaps because they constitute the bulk of the assets of financial firms and credit institutions. 2.2.3 Structure of and Parties to Receivable Securitization Receivable securitization can be structured on a typical funded, synthetic or collateralized debt obligation (CDO) structure.[44] However, in order to avoid dispersion and complexity; the focus here will be on the typical funded structure. A typical funded structure of receivables securitization (see 1) basically involves borrowers, an originator, an issuer and investors. These form the backbone of a typical funded securitization structure; nevertheless, a credit enhancer, rating agency and an underwriter/lead manager are also considered key players for the sake of regulatory compliance and in order to introduce an attractive opportunity for the targeted investors. Borrowers: Given that receivable securitization is a process that deals with loans; borrowers are considered the cornerstone of a securitization transaction. As they are responsible for paying the underlying loans, structuring a receivable securitization must take into account their credit capability. Some regulatory frameworks may require their consent. Originator: In receivable securitization, lenders or creditors are usually the originators of a securitization transaction. The originator can be a governmental agency or any financial, credit or investment institution such as a commercial bank, investment bank or captive finance company. The role of the originator does not start only at the point of the agreement with the SPV, but begins earlier,[45] specifically, from the moment that the originator recognizes the need for, or the feasibility of, securitizing a bulk of receivables. The origination process includes many steps involving, but not limited to, planning and structuring the securitization transaction, identifying and segregating the assets, notifying the borrowers, establishing the SPV(s), concluding the consultation and services agreements and handling any mediation activities between the borrowers and the SPV. Furthermore, the originator might continue to play the role of ‘servicer, providing, among other services, customer services, payment and collection services as well as default management and collateral liquidation.[46] An issuer: The key point of the securitization process is the issuance of the securities that resulted from pooling and transforming the assets. This issuance is usually performed by an SPV, which is normally a new and independent entity established for the purpose of taking over the position of the originator as a lender or creditor in the credit relationship. In other words, once a securitization takes place, borrowers no longer have a credit relationship with the originator, but rather with the SPV. A rating agency: For a successful securitization, a good rating of the credit quality of the transaction should be secured from a very well-established rating agency. Professional rating agencies usually provide a professional evaluation of the type and quality of the underlying assets, including any related risks.[47] Credit enhancer: Credit enhancement is a very important process for attracting investors to be involved in a securitization transaction. It provides them with a certain level of protection in the event that the originator fails to meet his commitments or the cash flows for the securitized assets are insufficient to cover the projected return of the securities. Another point, which will be discussed further below, is that credit enhancement can be secured internally through guarantees provided by the originator or on the basis of the quality of the securitized assets. Having noted that, a credit enhancer appears as a party in a securitization structure only if the credit enhancement is provided by a third party enhancer (i.e. by a letter of credit). In such a case, the enhancer must have a high credit rating in order to secure the confidence of the investors. Underwriter / lead manager: The offering of the issued securities public or to private investors is usually handled by a professional firm, typically, a bank which plays the role of underwriter in the securitization process. The key role of the underwriter is to manage the process of selling the securities to investors in order to achieve the securitizations targets. It should be noted that the trend among financial professionals today is to call this party a ‘lead manager, rather than an ‘underwriter, because the guarantee provided is, in principal, a commitment to make every effort to ensure that the securities are sold. There is, however, no guarantee in terms of the prices and quantity of the securities sold.[48] Investors: The ultimate objective of the securitization process is to transfer risk to investors and/or to generate liquidity from them. A securitization transaction may target specific kinds of investors through a private placement process or open it to the public. In both cases, the key investors are usually fund managers, pension funds, governmental funds, commercial banks and insurance companies.[49] 2.2.4 Process of Securitization It goes without saying that the securitization process involves detailed, complex and overlapping steps. In this paper, however, the focus is on the key steps which have strong significance in terms of the research objectives, namely, the packaging and transferring of the underlying receivables as well as the issuance of securities. 2.2.4.1 Packaging the Underlying Receivables The most vital step in a securitization transaction is packaging the underlying assets. This begins with identifying the targeted receivables, which may include any assets that generate cash flows over a period of time, such as mortgages, credit cards loans, consumers loans, corporate loans, auto loans, s