Miscommunication Is A Common Problem Information Technology Essay

Miscommunication Is A Common Problem Information Technology Essay Miscommunication is a common problem in most of the companies, and it has negative effects that may affect the company performance and employees. Researcher study seeks (a) to know what communication is and what its importance in the companies. (b) To know what the problems are when miscommunication happened. (c) To put solutions to resolve the problems. Researcher used secondary method to collect data by using survey distributed to the employees who work in Al Qudra Company. The survey questions are focused on communication ways that they use within the company and the reasons that lead to miscommunication between the staff and also by using Interviews with its manager related to the communication style within the company and how they face miscommunication results. Also researcher used primary method to collect data by using internet, books, and newspapers. Researcher use Literature review to emphasize her search by review pervious articles or reports. Data was collected within 4 weeks and 4 weeks to analysis the data. Finally researcher suggests some recommendations or alternative solutions to resolve the problems that come from miscommunication. Introduction Background of the Study Communication is one of the most effective ways to enhance organization performance, satisfy employees, and meet customer needs and wants. Communication could happened in two ways, it could be occur inside the organization between employers (managers) and employees (workers) and it could occur outside the organization between organizations workers and customers, traders, retailers. With good communication inside the company the employees will be able to know and understand what their jobs and roles exactly are and their performance will be more effective. In addition, good communication outside the company will increase the customers, retailers and traders loyalty and from that the company profits and reputation will increase too. In contrast, bad communication or not effective communication style inside or outside the company can lead to negative results. (condrat, 2009) http://www.suite101.com/content/effective-communication-at-workplace-a95815. There are two main ways for communication, first electronic communication through electronic mail, telephone, teleconference, voice mail message, and internet, second human communication through meetings, speeches, and interviews. (Svecz, 2010) http://www.suite101.com/content/basic-elementstips-to-build-effective-workplace-communication-a290104#ixzz1JcTjGq6s. Statement of the problem Miscommunication occurs when the managers who speak fail to communicate their ideas and requests to their employees or when the employees who listen fail to interpret the information. From that the problems at the company appeared where employees mistakes and confusions will increase while doing their jobs because they dont have enough information or misunderstand what are the exactly tasks should they do which lead to decline their performance and waste time and as result from that the companys profit will decrease. (condrat,2009)www.suite101.com: http://www.suite101.com/content/effective-communication-at-workplace 95815. Thus researcher focuses on this problem and tries to find out ways to reduce it. Objectives of the study The objectives of research study are: To review literature related to miscommunication. To know the problems and how it could be solved. To provide recommendations based on findings. Research Questions What is the important of effective communication at workplace? Is there any problem that companies could face during communication? When miscommunication could be occurring? What is the impact of miscommunication on the company and its staff? Limitation of the Study The researcher has been constricted her study in miscommunication at place of work and study its impact in the company performance and relationship among worker within the company in the UAE, taking Al Qudra Company in Al Ain city as a pattern of study and distributed the survey within the company. Significance of the study The main point of this study is to run interview with Al Qudra company manager and staff at Al Ain city in United Arab Emirates to determine when and how miscommunication at workplace occurs and to decide the impact of miscommunication on the company production and employees relationship inside (among workers) and outsides the company (suppliers, customers, traders) and give suggestions to overcome the impact of miscommunication which help the readers to be familiar with such these problems that could face the employees at work and how can deal with it. Definition of Terms Miscommunication: one unable to deliver his or her ideas and thoughts clearly or obviously to others. And also miscommunication is the one who receive the information (listener) analyze it improperly. Human communication: it is way to deliver the information to other people through conference, interview, dialogue, speech, and meeting. Electronic communication: it is electronic instrument that used to exchange a few words or communicate among people such as telephone, email, voice mail, etc. Internal communication: it is mean that the information is exchanged within or inside the organization between the workers to done the job required. External communication: it is meaning that the information is delivered and exchanged outside the organization with the customers, traders, vendor, or seller to persuade them to continue deal with organizations services and products or to explain something is not clear. Literture Review The literature that was used was Mortensens 1997 work Miscommunication  [1]  . In his work Mortensen cites various reasons why a conversation does not work, to name a few disagreement, distortion and misunderstanding. Many terms Mortensen cites are self explanatory (in that their meaning can be derived from their name alone e.g. lack of reciprocity), however the literature provides yet another framework by which miscommunication can be measured by. Mortensen sets out his theories in a clear and logical fashion, which in turn helped the development of the study. He cites six main ideas about miscommunication (implication, distortion, disruption, confusion, disagreement and misunderstanding) and this framework helped the study to also view miscommunication through these six main theories. In using this literature, a new focus for the dissertation was brought about in the sense of not only identifying miscommunication in the conversations but specifically a study into the miscommuni cation in the workplace and why this was happening. The literature that helped bring about this focus was Finchams 1982 investigation into hospital communication. In her investigation Fincham identified communication problems in the hospital and looked for ways to rectify this. In contrast to Finchams study this dissertation did not look to devise a solution to the miscommunication problems in the workplace, rather to examine the data against what should be expected from a workplace conversation, especially in the context of customer/employee interaction. Mortensen, C. D. (1997) http://www.lancs.ac.uk/search/index.htm?cx=015049136984008940906%3Aw6id2ed8vzwcof=FORID%3A10ie=ISO-8859-1q=miscommunicationsa=Searchsiteurl=www.lancs.ac.uk%2Findex.htm#1166 www.lancs.ac.uk/fss/courses/ling/ling201/res/diss/2004/towl08.doc Researcher noticed that miscommunication is familiar phenomena ages ago, and the way to get red of this problem is pretty obvious but, it need patience and need to talk and ask with a good attitude and show respects to other to respect you as well. Also being friendly with your colleagues makes them take your word to the positive side not the negative on as well. Methodology Researcher used secondary method to collect data by using survey distributed to the employees who work in Al Qudra Company. The survey questions are focused on communication ways that they use within the company and the reasons that lead to miscommunication between the staff and also by using Interviews with its manager related to the communication style within the company and how they face miscommunication results. Also researcher used primary method to collect data by using internet, books, and newspapers. Research means developed to supply answers to subsequent questions:   What is the important of effective communication at workplace? Is there any problem that companies could face during communication? When miscommunication could be occurring? What is the impact of miscommunication on the company and its staff? Population and Sample The population of the researcher study is 50 of male and female employee who work in Al Qudra Company. The survey distributed to the employees who work at Quadra Company in Al Ain and they are request to answer yes and no questions and other questions about communication ways that they use within the company and the reasons that lead to miscommunication between the staff. Instruments The first instrument the research used is survey which helps researcher to complete the research. The survey distributed to 50 employees who work in Al Qudra Company. The second instrument the researcher used is interview with the manager of Al Qudra Company Questionnaire   The questionnaire is distributed to 50 employees who work in Al Qudra Company which include two components: The first component is concerning general personal data for employees which are gander, age, nationality. The second component is concerning on communication ways that they use within the company and the reasons that lead to miscommunication between the staff. Interview The researcher used interview with the manager of Al Qudra Company related to the communication style within the company and how they face miscommunication results. Data Collection Procedures Researcher used three methods to collect data which are: Visiting personally Al Qudra Company at Al Ain branch to run interview with its manager by asking him number questions related to miscommunication at their company. Distributing survey to fifty employees who work in Al Qudra and ask them during their work time to answer the questions and then collect the survey paper again and examine the data according to their respond. Searching through internet, books, and articles for useful information that help researcher to collect accurate data and use it in her research via borrowing books from library and look through internet. Analysis of Data The researcher used Microsoft word and Microsoft excel program to make the table that contains the percentage result of the survey that shows the opinion of the employees working in Al Qudra Company . After that, researcher applied the chart according to the percentage result, to show the result as statistical graph. The following table and data chart showing their opinion in Miscommunications, how miscommunication affects their work efficiency and affects the whole company and its reputation. Also its showing the way to fix this problem and the suggested solutions from the employees them selves to fix it. And the basis researcher asked these specific questions is that researcher need to find the problem, try to solve it and get red of it when ever it happens again. Finding Results: Employees Response about Miscommunication in work place yes No Do you think that stress causes miscommunication? 76% 24% Do you think that dealing with non local colleagues causes miscommunication? 60% 40% Do you that the non cooperation between employees causes is miscommunication? 90% 10% Do you think that Threat of Favoritism causes miscommunication? 89% 11% Do you think that Criticism and backbiting between the staff causes miscommunications? 90% 10% Do you think that not getting a feedback causes miscommunication? 89% 11% Do you think that choosing the best medium reduces miscommunication? 69% 31% Do you think that being brief and getting direct to the point reduces miscommunication? 40% 60% Do you think that learning how to communicate reduces miscommunication? 80% 20% Do you think that miscommunication affects your work efficiency? 92% 08%Table 1. Results of surveying employees opinion in miscommunication. Data Chart Figure.1 Results of surveying employees opinion in miscommunication Conclusion Form what have discussed, researcher concluded that miscommunication in workplace always happens and its not something rare. The problem is caused by the people working there that mean that it could be solved in an easy way. Miscommunication is a problem that can Be solved By cooporation and Being frienly with your colleagues , so they can take every thing hold two meanings to the positive not the negative one. Summary To sum up what researcher have said in this topic , Miscommunication is a problem that can be sloved easily . resercher talked about the causes of the problem and the solutions too. Researcher made a survey that shows the opinions in miscommunication in worksplace and researcher alanlised the data and made the chart . Also , researcher made and interfew with the manager of the company and finally researcher concolded the ideas said above. Recommendation Researcher reccomands that the manager of the company should find a way to reduce the miscommunication in his company Because that may reduce the efficency of the work and the reputation of the company is gooing to Be Bad as well. Reducing the miscommunication means increasing the efficiency of work to success in the Business field. Researcher discover that miscommunication is one of tools that can destroy the business your working on . in addition, manager should relaize that fixing the miscommunication problem dont take much time to be solved . Bibliography 1- condrat, A. (2009, Feb 12). Effective communication in the work place. Retrieved April 8, 2011, from www.suite101.com: http://www.suite101.com/content/effective-communication-at-workplace-a95815 2- Svecz, A.-M. B. (2010, Sep 26). Basic Elements Tips to Build Effective Workplace Communication. Retrieved April 8, 2011, from www.suite101.com: http://www.suite101.com/content/basic-elementstips-to-build-effective-workplace-communication-a290104 3- Mortensen, C. D. (1997) Miscommunication London: Sage . Retrieved May19, 2011, Form : www.lancs.ac.uk: http://www.lancs.ac.uk/search/index.htm?cx=015049136984008940906%3Aw6id2ed8vzwcof=FORID%3A10ie=ISO-8859-1q=miscommunicationsa=Searchsiteurl=www.lancs.ac.uk%2Findex.htm#1166

Leadership and Management Essay

Initially I plan on reviewing the prevailing leadership styles in my organisation and then assessing the impact of these on the organisation’s values and performance. In order to assess the leadership styles I have produced a questionnaire (see appendix 1). The questionnaire was designed to find out how directive, participative and permissive each manager in our organisation is and then study the most prevailing style. It was evident from the information collated that the prevailing leadership style in our organisation is participative and directive rather than permissive. On assessing this information it became apparent that our manager’s leadership styles reflect a Contingency theory and they rather be present and take part in services in order to ensure controlled success. Contingency theory is a class of behavioral theories that claim there is no best way to lead a company, or to make decisions. Instead, the best action is contingent (dependent) upon the situation. Several contingency approaches were developed in the1960s. They suggested that previous theories such as Weber’s bureaucracy and Taylor’s Scientific Management had failed because they neglected that management style and organisational structure were influenced by various aspects of the environment: known as contingency factors. There could not be â€Å"one best way† for leadership or organisation. Historically, contingency theory has attempted to formulate broad views about formal structures that are typically associated with or best fit the use of different organisations. This perspective originated with the work of Joan Woodward (1958), who argued that skills directly determine differences in such organisational attributes as a span of control, centralisation of authority, and the formalisation of rules and procedures. My Organisation Values and Performance The organisation that I work for delivers a range of high quality services and projects, these services follow the principles of empowering communities, developing lives, furthering equality, diversity and inclusion and strengthening local voluntary sector delivery. These principles dictate the values in which we function. We are very much a voluntary sector, charitable organisation ensuring that at the heart of our services are the people that access them. Performance is measured through a set of service delivery indicators which form the base of our promises to funding bodies, staff, volunteers and customers in everything we do. These indicators are measured via our service development plan. Each year we publish an Annual Report based on our Service Delivery Indicators, which measure our progress and informs the public of our work over the previous year in delivering against our priorities. (See Appendix 2 for our organisations SDI’s) Our organisation values and performance clearly highlight a need for the leadership to be open and receptive. This allows us to except feedback and input from our service users. A directive and participatory leadership style is imposed by managers in our organisation for staff; however when dealing with service users we have to adopt a more directive style to ensure commination is clear and there is no room for bought. We have found in the past when we have given service users who are vulnerable and have mental health difficulties an opportunity to contribute to services they feel empowered, however they need time and guidance in order to make informed decisions. Effectiveness of my Own Leadership Style On assessing my own leadership style I appeared to be more directive, in the middle when it came to participation, however I did not seem to be very permissive. The results did not surprise me and seemed to be consistent with my approach. I tend to direct staff by the use of many models including action plans which are produced in team meeting and each member of staff is allocated actions, timescales, budget and directions. I am participatory when tasks are being carried out I ensure I understand the delivery method and observe when necessary. For example if we are promoting a new group I will ensure all promotion literature is checked by me prior to going out and visit the new group to view session delivery. I do not hide away form front line delivery and ensure I gage with staff, clients and volunteers therefore I understand the reason why on my leadership assessment I did not score highly on being permissive. Therefore I feel my management style suits the organisation. However with the changing nature of our organisation leading towards a more business-like approach I may find I have to review my management style. I may need to become more permissive, less participatory and even more directive. This will ensure I can work more strategically to order to retain services and staff. Changing my approach may be difficult for my staff to accept, however explaining that their jobs may be at risks if I do not manage differently may put it all into perspective. By applying a Contingency theory mentioned earlier I should be able to manage this effectively. I asked my staff to assess my leadership style using the questionnaire I produced and gave to fellow managers (Appendix 1). The results mirrored my self assessment, demonstrating that I understand my own leadership style well and that the staff have the same opinion. Apply Own Leadership Style in Range of Situations Over the last two weeks I have begun to assess my own leadership style in a variety of situations. These have mainly taken the form of meetings. I have chaired a client/volunteer meeting and a full staff meeting. My leadership style tended to change in these situations. I became less formal with the client and volunteer meeting in order to project at their level of understanding. Less detail was presented and less decision making was required. The meeting was more informative and decisions had been made by the staff team prior to the meeting. Feedback and participation was welcomed however it was in a manner in which it could be controlled so as a staff team we could make informed decisions.

Automatic Renewal Clauses: The Case between Letisha and Sudson Washer and Dryer

This paper examines a contract between Letisha and Sudson Washer and Dryer that contains an automatic renewal clause. The potential defenses for Letisha if Sudson sues her for breach of contract are presented. The defenses for Sudson that support the automatic renewal clause are also discussed. The ethical issues of using an automatic renewal clause and the actions of the Sudson Washer and Dryer representative when signing the contract are also examined. Section 2A of the Uniform Commercial Code and how it applies to this case is presented. There are also government and private entities that Letisha can complain to about the business practices of Sudson. Finally, the paper concludes with the potential outcome of the case if Sudson sues Letisha for breach of contract.Automatic Renewal Clauses: The Case between Letisha and Sudson Washer and Dryer Letisha signed a lease with a Sudson Washer and Dryer Representative that allowed her to lease a washer and dryer from the company for five y ears. At the end of the lease agreement, Letisha called to cancel, and found out that her lease agreement had been extended for three five year terms. Letisha was unaware that the contract had an automatic renewal clause.The Uniform Commercial Code section 2A defines a lease agreement, and it also explains how lessees and lessors are protected. Using Section 2A and state laws, there may be defenses for Letisha if she decides to breach the contract and Sudson sues her. There may also be government agencies Letisha can bring her grievances to about Sudson’s use of automatic renewal clauses. There are also defenses for Sudson to support the enforcement of the automatic clause, even if the use of an automatic renewal clause may be unethical. This case is an example of the importance of reading a contract before signing it.Defenses for LetishaDepending on the state where Letisha lives, there could be a multitude of defenses available to her regarding the automatic renewal. In some states, the lessor is required to send a reminder to the lessee of the automatic renewal (Davidson et al., 2009). In New York, for example, the lessor is required to send written reminders of the automatic renewal at least 15 days before the contract renews (Dutton, 2011). Since Letisha received no prior notification besides the information in the contract; she may be able to use that fact in her defense.In Illinois, the automatic renewal policy must be conspicuous (Dutton, 2011). There is no uniform requirement for conspicuousness, but the Uniform Commercial Code states that capital letters and bold face print should be used. It is apparent in Letisha’s case, that the automatic renewal clause with Sudson was not conspicuous, which may be grounds for a defense.In Wisconsin, laws regarding the automatic renewal clause were passed saying that the lessee must be informed about the clause before the contract is signed (Dutton, 2011). The salesman did not inform Letisha of the cl ause, and while it is her responsibility to read the contract, she may have grounds for a defense in some states. Some states would also allow a defense on the grounds that the automatic renewal length is too extensive. Most standard form contracts are held if the automatic renewal is for five years or less (Kirschenbaum, 2013). It would be up to Letisha to either research the legislation in her state regarding automatic renewal contracts, or to hire an attorney to do so, in order to find if she has grounds for a defense against Sudson.Defenses for Sudson Washer and DryerThough there are provisions in many states regarding automatic renewal clauses, if Sudson followed the stipulations in their state, they would have a legal argument supporting the enforcement of the clause. In the case of Tidwell v. Pritchett-Moore, Inc. & Tim Rutledge, the Alabama Supreme Court found that automatic renewal clauses are enforceable if the provision is clear in the contract (Tidwell 2008). It is not t he fault of the company, if the lessee signed the contract without reading it fully and failed to give notice of cancellation before the deadline.If the clause is stated clearly, then it is likely that it will be enforced by the courts. For example, in the case of Winthrop Resources Corporation v. Spearhead System Consultants, the court found that because intentions to terminate the  contract were not made clear before the time allotted in the contract, the renewal of the contract was enforceable (Huddleson, Graynor, Flick, & Whelan, 2003).Ethical IssuesWhile Sudson’s automatic renewal clause may be upheld, there are ethical issues of the company using such a practice. First, many courts have had the opinion that parties should be notified when the lease is up for renewal (Leitess, Ihne, & Goldberg, 2005). It is unlikely that the client would remember about the clause five years later, and the company should be willing to make a courtesy call in order to keep customers happ y. Also, all parts of the contract should have been discussed before signing.Not informing the client of the automatic renewal policy does not reflect well on Sudson Washer and Dryer Service. The National Association of Equipment Leasing Brokers states in their code of ethics that leasing companies should remain honest and professional in all business transactions (â€Å"NAELB,† 2013). In this case, not discussing all parts of the contract before allowing the client to sign is neither honest nor professional. U.C.C Section 2AThe Uniform Commercial Code Article 2A governs the leases of goods, and it provides basic contract rules regarding leases. The U.C.C. defines a lease as transfer of goods by a lessor to a lessee for a set amount of time in exchange for payment (â€Å"U.C.C.,† 2002). Using this definition, the U.C.C. Article 2A can be applied to the agreement between Letisha and Sudson Washer and Dryer Service. Sudson leased the equipment to Letisha in return for mo nthly payments.The company is responsible for the upkeep and maintenance of the washer and dryer because they hold the title to the machine. Letisha is required to make payments to Sudson in order to fulfill her part of the lease agreement. Article 2A not only lists the necessities to make a lease agreement legal, but it also lists the rights of both lessee and lessor regarding the lease agreement.Complaints to Government EntitiesOne entity that Letisha may complain to is the Better Business Bureau. The BBB will look into any complaint that does not involve the workplace, discrimination, health services, legal services, or cases in litigation (â€Å"What complaints,† 2013). A complaint through the BBB will be sent to the business for resolution. Though the business may choose to stand behind their agreement, a complaint will be lodged against the company. Another option for Letisha is the Bureau of Consumer Protection under the Federal Trade Commission.The purpose of the Bure au of Consumer Protection is to protect consumers from unfair or deceptive business practices (Rich, 2013). If the automatic renewal clause is found to be unfair or deceptive, then the company may be sued by the Bureau of Consumer Protection. Letisha can complain to these entities about Sudson’s automatic renewal clause, but it is the agency’s discretion whether the clause is unfair or not.Outcome of Legal ProceedingsIf Sudson sues Letisha for breach of contract, it is likely that Sudson will win the case. The U.C.C. Section 2A-301 states a lease contract is enforceable according to the terms agreed to by both parties (â€Å"U.C.C.,† 2002). Since Letisha and the Sudson representative signed the contract, both parties agreed to the terms within the contract. It is unlikely that the court will favor Letisha because the automatic renewal clause was not pointed out to her. It is the lessee’s responsibility to read the contract and understand all parts. The ag reement clearly stated the time limit on cancelling the lease, and Letisha failed to meet those requirements.ConclusionIn order to avoid issues like Letisha’s with Sudson, it would be advisable for parties to go through the contract together. Lessees may even want to hire an attorney to explain any part of a contract that is not easily understood. By taking the time to read the entire contract before signing, lessees are protecting their interests. Automatic renewal clauses are losing their popularity, but they are still used, especially in leases between businesses. Businesses may want to consider other avenues to keep customers, but if they are going to use automatic renewal clauses, it will keep customers happy if they are informed of such a clause before it is too late to cancel the lease agreement.

Examining the major Banking Organizations of Sweden - Free Essay Example

Sample details Pages: 11 Words: 3428 Downloads: 6 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? Banks are of central importance for economic growth, credit allocation, financial stability, and the competitiveness and development manufacturing and service firms. The structural features of Sweden banking systems have changed significantly over the past 20 years. The increased availability of credit has been the corollary of the dismantling of barriers of trade in Sweden financial services. Don’t waste time! Our writers will create an original "Examining the major Banking Organizations of Sweden" essay for you Create order Sweden banking and finance sector has undergone considerable change in recent years. This has created greater competition, not only among older banks but by the establishment of new Swedish and foreign financial institutes and the main features are Banking and finance has been liberalized and deregulated in Sweden, Banks have long experience in international business and International banks now highly active in Sweden. Before entering into the details of the above given reasons, we will be looking at the main structure of the Sweden banking system. In Sweden there are three different types of banks: commercial banks, i.e., limited liability banking companies, savings banks and a few cooperative banks. All these types of banks are entitled to engage in all types of banking activity. The number of banks has declined sharply as a result of mergers, a tendency that has been most marked among the savings banks. From some 450 savings banks of the 1950s, the number had decreased to 85 by th e late 1990s. Since the middle of the 1980s, however, numerous new banks have been established in Sweden. The market structure can be described as two-tiered with five large banks (Handelsbanken, Skandinaviska Enskilda Banken, Nordbanken and Fouml;renings Sparbanken as well as the Swedish subsidiary of a major Danish bank) having a combined market share of about 75-85 percent; the residual market is shared among around 100 smaller banks. The home market for Swedish banks has to a greater extent been seen to embrace not only the traditional Nordic area but the whole region surrounding the Baltic Sea. The four major Swedish banks are very broadly held. The largest owners are the Swedish government (less than 20 percent in Nordea), the Wallenberg-led investment company Investor (some 10 percent in SEB), the employees pension fund (some 10 percent in Svenska Handelsbanken), and the former savings banks foundations (some 20 percent in Swedbank, which was earlier a savings bank, which merged with a cooperative bank and became a commercial bank). Approximately one third of bank shares are held by non-Swedes. The medium and small-sized banks are generally held by one dominating owner, which in turn may have a widely spread ownership, such as Skandia. All savings banks are non-profit organizations and they are held by foundations. The Swedish Financial Supervisory Authority is a government authority responsible to the MoF. It exercises supervision over banks, credit market companies, and additionally e.g., insurance companies, insurance brokers and securities companies. The Central Bank Act assigns to the Riksbank the responsibility to ensure a stable and efficient payment system. It also assigns to the Riksbank the responsibility for monetary and exchange rate policy (including the management of the gold and currency reserves), as well as managing the issue of notes and coins, providing a clearing function for banks as well as accepting deposits from banks and granting them loans. The Central Bank also functions as lender of last resort providing financial aid to banks experiencing liquidity problems. Early 1990s, Sweden was in the middle of the most serious economic crisis. Unemployment increased fourfold in the course of a few years and the central government finances deteriorated dramatically. This crisis has been attributed to deregulatory measures taken in 1985 which contributed to overly repaid credit expansion which led to a banking crisis followed by a currency crisis in 1990. The result of deregulation was obvious. In the course of just five years, the credit to GDP ratio for private sector moved up from 85 to 135 per cent (Governor Backstrom, 1997) Deregulations, on the one hand. Credit market deregulation in 1985, necessary in itself, meant that the monetary conditions became more expansionary. This coincided, moreover, with rising activity, relatively high inflation expectations, a tax system that favoured borrowing, and remaining exchange controls that restrained investment in foreign assets. In the absence of a more restrictive economic policy to parry all this, the freer credit market led to a rapidly growing stock of debt (Fig.). In the course of only five years the GDP ratio for private sector debt moved up from 85 to 135 per cent. The credit boom coincided with rising share and real estate prices. During the second half of the 1980s, real aggregate asset prices increased by a total of over 125 per cent. A speculative bubble had been generated. Step by step the Swedish economy became increasingly vulnerable to shocks. During 1990 matters came to a head. Competitiveness had been eroded by the relatively high inflation in the late 1980s, resulting in an overvalued currency. This caused exports to weaken and meant that the fixed exchange rate policy began to be questioned, leading to periods with relatively high nominal interest rates. Moreover, the tax system was reformed in order to reduce its harmful economic effects but this also contributed to higher post-tax interest rates. Asset prices began to fall and economic activity turned downwards . Between the summers of 1990 and 1993 GDP dropped by a total of 6 per cent. Aggregate unemployment shot up from 3 to 12 per cent of the labour force and the public sector deficit worsened to as much as 12 per cent of GDP. A tidal wave of bankruptcies was a heavy blow to the banking sector, which in this period had to make provisions for loan losses totalling the equivalent of 12 per cent of annual GDP. After this crisis when Basel II came into existence than Swedens golden period starts as common international regulation and framework for the banking industry are of great importance for the reliability and development of financial systems and countries economies. One such framework is Basel ll which was presented in 2004. It is based on Basel I which consisted of a credit risk measurement guideline and minimum capital requirement. Basel II consists of three pillars in which minimum capital requirement, the supervision process, and market discipline are regulated (Finansinspektionen 2002). The intention of Basel II is to lower banks capital requirement by offering banks the ability to choose a method that reflect their when calculating risk (BCBS, 2004). BCBS , the Basel committee on banking supervision ,presented a study called the fifth quantitative impact study (QIS 5) in 2006 that was based on data from the fall of 2005 (Finansinspektionen 2006 ). The purpose of the study was to examine how Basel II can be expected to affect bank with regard to their capital requirments. The study showed that the minimum capital requirement could be reduced with Basel II in comparison to Basel l. BCBS had not presented any other study after QIS 5 indicating how Basel II had affected the banking industry. This study aims to fill part of that gap by examining how capital ratio, the net credit loss level, and the degree, and the degree of disclosure have progressed for the four largest banks in Sweden during the implementation of Basel II as this has not previously been looked at. Hypothesis regarding the impact Basel ll has had on these variables will be presented based on these observation. To be able to make better hypothesis regarding the impact of Basel ll, the impact of the economic climate on these variable was investigated by creating a market indicator which consisted of the banks average net profit. The Swedish financial market and other factors Efficient and reliable systems for saving, financing, mediating payments, and controlling risk are vital for the well-being of the Swedish economy. These systems are handled by banks and other credit institutions, insurance companies, securities companies and other types of enterprise in the financial sector. The financial industry account for just over four per cent of the countrys total output, defined as its Gross Domestic Product (GDP). More than 90,000 people, about two per cent of the countrys total working population, work in the Swedish financial industry. The financial sector has expanded rapidly during the past decade. Established companies have broadened the scope of their business, and many new companies have entered the market. One important change is that banks and insurance companies have moved into each others areas, and as a consequence, all of Swedens major banks are now involved in the life insurance business and some insurance companies own their own banks. Anothe r change is that customers are banking more and more via the internet or the phone. These new channels of distribution have enabled the development of new services and intensified competition on the banking market through the establishment of new banks. Moreover, Swedes are investing increasingly in funds and insurance policies as they turn away from traditional bank saving. More than 85 per cent of the population have some of their savings in funds or equities, which by international standards is a very high proportion. Deposits and lending The core activity of a bank is to accept deposits and provide credit. At the end of 2002, bank deposits from the public (i.e. mainly households and non-financial enterprises) amounted to 1,242 billion kronor. The bulk of these deposits approximately 42 per cent come from Swedish households. Swedish companies account for around 32 per cent of total deposits and foreign depositors for some 22 per cent. Bank lending has increased in recent years, to reach 1,360 billion kronor by the end of 2002. 47 per cent of this lending to the public goes to the Swedish business sector, while households and foreign borrowers account for 21 per cent and 27 per cent respectively. Interest rates The interest rates banks set for their deposits and credit are largely dependent on the rates prevailing on the money market. Other factors that influence interest rates include the creditworthiness of the borrower, competition among credit institutions, and competition for different types of saving. The average rate of interest paid and charged by the banks has been declining steadily since the beginning of the 1990s. The interest spread the gap between the average interest rate received on credits and that paid on deposits has also tended to narrow during the same period. Safe and efficient payment mechanism Another important function of a bank is to provide a means of payment. The Swedish payment system, which includes the bank giro service and the postal giro, is technically rather advanced, and has a reputation for efficiency. This means that payments are transacted quickly, securely and at low cost. Mortgage market In Sweden, mortgage loans are usually provided by specialist credit market companies known as mortgage credit institutions. The total volume of outstanding loans of these institutions amounted to SEK 1,200 billion at the end of 2002. For many years now, lending by mortgage credit institutions has exceeded the volume of bank lending in Sweden. The mortgage credit institutions provide credit primarily for residential property, but also for commercial and office buildings and municipalities. Mortgage loans are secured by collateral, normally in the form of a mortgage on the property. The lending consists of a first mortgage, which involves pledging the property for up to 70-80 percent of its value. Additional credit is then often provided in the form of a second mortgage by the bank that owns the mortgage institution or by another bank with which the institution co-operates. Mortgage institutions offer a wide range of credit facilities at variable or fixed interest rates. Internet banking Swedish banks are among the most advanced in internet banking services. All major banks in Sweden offer online status on accounts and other assets, online payments, and the possibility to buy and sell units in funds and shares. Corporate customers have been able to bank via the internet for many years. At the end of 2009, there were a total of around 50, 00000 internet banking users and approximately 15million internet payments. Internet surveys show that customers are very pleased with the Banks online service. This was confirmed by IBM and Interbred, which ranked FSB as number one in Europe and number two in the World (Swedbank AnnualReport, 2009). Monetary policy update The Swedish economy is performing well, and GDP grew by almost 7 per cent in the third quarter of this year, compared with the same quarter last year. The strength of the Swedish economy is also reflected in the labour market statistics. The labour market has been recovering throughout 2010 and indicators point to a continuing rapid improvement. The world economy is expected to grow by a good 4 per cent a year in the coming years. Economic activity remains good in the emerging economies in Asia and Latin America. In both the United States and the Eurozone, economic prospects look slightly better in the short run than was forecast in the October Monetary Policy Report. At the same time, the global imbalances remain and concern over public finance in several countries has increased. Despite the relatively divided international outlook, the indicators for the Swedish economy point to continued strong growth in the coming period. GDP growth is expected to amount to 5.5 per cent in 2010 a nd to over 4 per cent in 2011, and then to decline. The recovery has been relatively rapid and Sweden is also expected to experience higher growth than many other countries in 2011. Resource utilisation is currently lower than normal, but is expected to be normal or slightly above normal towards the end of the forecast period. Underlying Inflation measured as the CPIF was 1.9 per cent in November. It is expected to fall at the end of 2011 and then rise again towards 2 per cent. Higher mortgage rates will lead to the CPI rising slightly faster than the CPIF and it is expected to exceed 2.5 per cent in 2013. In the longer run, when the repo rate stabilises, the two measures of Inflation will coincide. To stabilise Inflation close to the target of 2 per cent and avoid resource utilisation becoming too high, there is a need to gradually raise the repo rate towards more normal levels. The repo rate is therefore being raised to 1.25 per cent. The forecast for the repo rate remains largely unchanged in relation to the forecast in the October Monetary Policy Report. Environmental factors in Sweden banking Sweden is a democratic monarchy. It is the largest Scandinavia country with over 9 million inhabitants. Sweden has been known for its neutrality and policy of non-alignment with either NATO or the Warsaw Pact. It is a member of most international organizations (UN, UNESCO, WHO etc).Sweden has been a member of the European Union since 1995 but decided not to join EMU. A referendum in 2003 rejected the euro by a decisive margin against the advice of the government and the wishes of business. The Prime Minister stated it was unlikely there would be a new referendum before 2010. Key economic indicators for 2008 estimates (Source: Central Intelligence Agency Country Profiles) 69.6% of the economy is in the services sector, 28.9% industrial and 1.5% agriculture. Population: 9,045,389 GDP: USD 358.4 billion Per capita GDP: USD 39,600 Real GDP growth: 0.9% Unemployment: 6.2% Public debt/GDP: 36.5% Cash Management Features Activity is highly automated with major activity inside the Bankgirot and Plusgirot systems. Rather than hold accounts in both and maintain liquidity in both, it is possible to hold accounts just at the Nordea group, into which the Plusgirot has been subsumed. The EUR has emerged as a parallel domestic currency for business, notwithstanding Swedens rejection in 2003 of EUR membership. The old E-RIX system that was connected to TARGET and used to settle domestic EUR trade has been abolished. EBA is now used to settle EUR transactions.Group account (Balance netting) is the preferred Liquidity Management technique domestically, and can be used for both single and multi-currency. Zero balancing is also available domestically and is getting more common than earlier due to multinational corporate customer Payment infrastructure in Sweden Most Swedish companies have a business account in a Swedish bank. The majority of domestic non-cash payments are affected through the two giro systems, PlusGirot and Bankgirot. PlusGirot-: The PlusGiro system is a part of Nordea. Thus, Nordea is the only bank in Sweden that can provide a connection to both PlusGirot and Bankgirot in SEK or EUR, meaning an all-in-one account for all the payments regardless if they are routed through the PlusGiro or the Bankgiro system. Bankgiro-: The Bankgiro system is operated by Bankgirocentralen AB (BGC), a bank-owned subcontractor of payment processing services. All banks in Sweden participate in the Bankgiro system. It functions as an automated clearing house (ACH). Payments can be made in SEK or EUR. Payment Instruments The vast majority of activity clears electronically: there is a high degree of automation. This is supported by very high usage of internet for payment initiation. There is still a form of paper-based credit transfer but the clear growth is in electronic initiation.This extends to electronic bill presentment, where the debtor can initiate a credit transfer in their electronic banking by clicking through form the bill itself.In terms of volume, credit transfers and debit cards are the most used, whilst in terms of value it is credit transfers.Sweden has a high density of ATMs and EFTPOS, and this is the part of the payments market that is growing most dynamically. Cheques Electronic payment ( The RTGS system in Sweden is operated by the Riksbank) Cards Internet banking These all are the factors in the Sweden banking environment which make the Sweden banking system much stronger than any other banking system. Sweden is capable of providing all the facilities to its consumers and its partners domestically and internationally and Sweden is having the biggest usage of internet banking amongst all other countries and more advance at this moment. Future Activities in 2011 The Riksbanks financial stability works in 2011 was largely characterised by the financial crisis and its aftermath. After having stabilised in the winter of 2010/11, unease again increased in the financial market in springs 2010 as consequence of the state of the public finances of several countries in the southern Europe. The unease became acute in May in connection with the downgrading of the Greek governments credit rating. The aftermath of the financial crisis is the extensive work continued of reforming national and international regulatory codes and improving supervision of the financial crisis. An important part of this work in Sweden is to clarify the Riksbanks responsibility for financial stability. New international regulatory frame work A large part of the Riksbanks stability work was focused during the year , as in 2010, on studying and influencing the framing of the future financial regulatory framework of future financial regulatory framework and supervision .since Swedish banks and financial institution are governed by law framed at EU level, which in turn to a great extent are based on guideline drawn up by other international bodies, the Riksbank participated in continued discussions both at EU level and within the bank of international settlement (BIS). During the year a new regulatory framework for financial institution called Basel III was established. Increased cross-border work The financial crisis has shown that there are great differences in the legislation at national level. Because of these differences, during the crisis it was difficult to handle problem in banks that operates in several different countries. Consequently several international projects are in progress that, address how banks with cross border operations are to be dealt with (For Example, First Deputy Governor of the Riksbank Svanteacute; Oberg). In 2010 the Riksbank also took part in the preparatory work ahead of the start-up of the new European system risk board (ESRB) in 2011. A coherent regulatory framework and cleaner division of roles between authorities in Sweden In view of the lessons learned from the financial crisis and the extensive regulatory work that is in progress in the international arena, the Riksbank believes that it is important to carry out a thorough overhaul of the financial regulatory framework in Sweden as well. The general Council of the riksbank and the executive board of the riksbank and the executive board of the Riksbank accordingly proposed in a joint submission to the Riksdag that one or several inquiries should be set up to review the regulatory framework in the financial sector. The Swedish banks resilience continued to improve in the second half of the year as a result of the economic recovery the situation of the Swedish bank continued to improve. The economic recovery had become stronger than previously expected. Consequently, the Swedish banks loans loss continue to fall and according to Riksbank forecast in the financial stability report in December they were lower than the Riksbank had expected in June.