You could put any topic you think is necessary Essay

You could put any topic you think is necessary - Essay Example Capital punishment began as early as in the 14th century B. C. under the Hittite code. They were also in used by Romans in the 5th century B. C., in Athens under the Draconian code in the 7th century B. C. as well as in Babylon in the 18th century B. C. during the reign of King Hammurabi. Criminals were mostly burnt alive, beaten to death, crucified or beheaded. In Britain, the most commonly used methods for execution were hanging, boiling alive or beheading. In the 16th century A. D, more than 70,000 people were executed in the country during the time of Henry VIII. Crimes included theft, getting married to Jews, treason and many other crimes that added up to 222 by the 17th century A. D. In the mid 18th century A. D., the crimes that were punishable by death were reduced to 120 (Banner (2002). Many nations have abolished capital punishment, but some are still practicing it, with China leading the group of 58 countries, having executed 5000 capital offenders in 2008. Iran and Saudi Arabia were also ranked among the countries with the highest executions though they came after China by far at 348 and 102 respectively. In the United States, 37 offenders were executed. Japan, Indonesia, Libya, North Korea and Saudi Arabia are also applying capital punishment (Hands off Cain, 2008). Abolitionists are still campaigning against death penalty. Brown (2010) observes that the bible, which is used in many criminal justice systems for swearing convicts and witnesses has many verses such as â€Å"Genesis 9:5-6, Numbers 35:30, Num. 35:30 and Num. 35:33-34† among others that support death penalty for various crimes including murder, adultery and incest among others. There are offences in these passages that can only be punished through capital punishment. Some countries such as the US use these verses to justify the application of capital punishment. However, there are usually controversies concerning the sixth commandment that cautions against

Explosion Essay Example for Free

Explosion Essay Topic Sentence Imo the Norwegian Ship should be blamed most for this incident, for being in too much of hurry, not following sea rules, and the stubbornness of the ship’s captain. EvidenceProof/Quote/Fact/Research| Explain the relevance of this evidence to your thesis statement. How does it support your overall argument? | SOURCE CITATION(Where did you get itfrom? )| Twice the captain of the ship of the Imo Avoided other vessels by passing there starboard side (wrong side). | The captain is already not following the rules of the sea, how do we know it was not completely the Norwegian ships fault. http://thecanadian encyclopedia. com/featured/the-Halifax-explosions | The Imo was 18 hours behind Schedule and Mont Blanc was aSitting duck outside, and Pilot Mont Blanc was astonished to see the Imo advancing at high speeds. | The ship was in a rush to get tothe destination and was speedingon purpose so it could arrive quickerbut the plan had backfired when they saw the other ship in the path they had been taking. | â€Å"Halifax Explosion1917. † Encyclopedia Britannica. Encyclopedia Britannica Online school edition. Encyclopedia Britannica, Inc. , 2013. Web 1 Apr. 2013lt;http://school. eb. om/eb/Article-94438247gt;| There was a flurry of whistles Between the two ships the Norwegian ship did not changeDirection until final moments. | This caused the accident because if they weren’t going the wrong way and wrong speed we could have prevented this from happening And losing so many lives. | http://thecanadian encyclopedia. com/featured/the-Halifax-explosions| ARGUMENT # 2 Topic Sentence

Tense in Formal and Informal Arguments :: Tense Arguments Logic Essays

Tense is one of the most significant disparities between formal arguments in classical first-order logic and informal arguments. Tense is a vital grammatical tool for expressing both actions and states of objects. Yet the syntax of classical first-order logic is not designed to accommodate tense. In this paper I shall evaluate several attempts to address the issue of the formal treatment of tense. I will seek to determine how tense is important to the consequence relations among sentences. First, I will examine Quine's approach, which tries to represent temporal discourse without extending the syntax of classical logic. Then I will look at Prior's approach, which introduces tense operators. Finally, I will outline two approaches of my own, which require second-order calculus, and will try to show why the second one best captures the aspects of tense that are appropriate for formal treatment in logic, while minimising uncomfortable ontological commitments. Tense logics, as the name suggests, seek to formalise the logically relevant aspects of tense in arguments. The traditional treatment of tense is to require that the tense of informal arguments remain the same throughout. However, this requirement is inadequate because in some cases it is vital to represent tense in order to evaluate the validity of an argument. For example, consider the following: Eve marries Adam Eve is faithful to Adam Eve gives birth to a child Adam is the father of the child This argument seems valid, but notice how that intuition changes if the order of the premises is changed: Eve gives birth a child Eve marries Adam Eve is faithful to Adam Adam is the father of the child It is not nearly as clear whether this version of the argument is valid. This is because tense matters. Our natural tendency in informal arguments is to assume that premises like these are presented in chronological order, but such an assumption will not do for formal arguments. Therefore, we need to incorporate tense to clarify the temporal relations among the sentences. When this is done, the argument looks like the following: Eve has married Adam Eve has been faithful to Adam Eve gives birth to a child Adam will be the father of the child This argument is clearly valid, because the temporal sequence of the sentences is explicitly indicated. Now, how should we formally represent tensed sentences?

Why is it important to know what you believe?

What do you believe about God, the Bible, and Jesus Christ BY abbey0883 It is important to know what you believe so you can make the correct decisions in life based on your personal values, and Judge the best way to solve problems in your life. It is also important to know what you believe so if questioned you can intelligently address the concern. If you KNOW you can present the inquisitor with facts so they can evaluate them for themselves. My Beliefs 1 . ) I believe in God.He is the creator of all things Including me. The world and everything in it is so intricate It could not have happened by chance or evolved over billions of years. 2. ) I believe the Bible Is the word of God. I believe this because the Bible meets the needs of all mankind. If you need comfort, love, forgiveness, or faith you can find some verse or chapter to address the need. I also believe the Bible because I have accepted Jesus Into my life and have faith that that the Bible Is true. 3. ) I believe In Jesus C hrist.I believe In him also because of faith. Jesus died In order to forgive us of our sins. Just because I cannot see him It does not mean he Is not real. No matter what I am going through I know he's there. If I need healing I pray and believe In him. If I need guidance In making a decision I ask and trust he will gulled me. The hard part Is to remain patient while waiting for him to show me the answers I seek. While waiting I keep praying to stay close to him. This way I do not stray and follow my own path.

Assigned Seating Essay

Would you want an assign seat for everyday you sit at lunch or would want to be able to choose for yourself? In our country we have always had a freedom of choice. The topic the I am going to discuss with you is wether or not you should have assign seats during lunch. Many middle school and high school students disagree on having assign seats. Many agree with it because it is a chance to make new friends or interact with someone you usually do not. I do not think that assign seating is the best way to have lunch when we need sometime to socialize,relax and talk with your friends. For one thing, students will most likely be comfortable when they are next to people they know already. 100% of sample students polled from a local middle school stating that they were in favor of having no assign seating in the cafeteria. After all,it is quite logical that kids will feel more comfortable when they are not fretting about other things. Also, having no assign seating prepares students for the real world. Letting students choose where and with whom they are seated in school prepares them for the future, where they will have to make responsible decisions based on what is best for them, which is one of schools main ideals, or at least should be. In addition, allowing freedom can give them a chance to interact with others. For example, if you had assign seating in your cafeteria you would have to sit next to the same person everyday and you would not be able to talk or interact with different people. Also, there was a kid that was in school that had assign seating and everyday at lunch he go bullied by a kid that was in his table, and because of that he tried to kill himself. Thousands of schools participate in this program and it was successful but not in the school that this poor kid went to. Finally, having the freedom to sit where you like can give you more time to eat. For example, if there is someone in your assign seat and your not the kind of person to get in trouble, you would have to stand there and wait until they move which can take a while and it takes time away from eating and relaxing. One time there was a kid that wanted to eat lunch when someone was in his seat and they did not move, so so the kid had to wait until the other boy moved from his seat and that took up his whole lunch break and he ended up not eating at all. Having assign seating with someone you dislike or do not get along with could end up in an argument or even worse, a fight. Some of the benefits of having assign seating are that kids will not continually wander around the cafeteria looking for a seat, and chocking back tears when no one would let them join a table. Also, the cafeteria would not become ground zero for gossip, bullying, and fighting. If we had assign seats there are many different advantages concerning the stop of bullying, fighting , and arguing. Now, should kids be able to chose there own seats? if they sit in school for 7 hours and do 2-3 hours of homework per night, and even have projects for the weekends, will they also refuse kids from sitting where they like in lunch? To me , assign seating is a definite no, and I strongly disagree with anyone who says that they agree with it.

The History and Development of Psychology essays

The History and Development of Psychology essays Psychology has evolved through the years as the face of society and culture has changed. As the worlds population grows so do the boundaries by which the science of psychology is growing. It is an adventure of the mind that compels one to want to study the human psyche. These studies have produced thousands of publications over the past three hundred years. Many of which we can still find in publication today. Not only are some of the literary works still in publication, but also many of the theories have remained without much change. We have entered into a world of experimentation. One that allows us to research and study animal behaviors. These experiments are regulated, however, there are many different opinions as to how they should be regulated and if they are enough. Who determines these regulations? It must be up to the scholars, leaders and our society. Without studies, advancements would not be found. Where do these psychologist go? You see them in many forms. In the early days, they were educators of psychology, scientists and researchers. Now, they are clinical psychologists, school psychologists, and industrial psychologists and yes, many are still educators, scientists and researchers. Their work is tireless, valued and tested each day. Some areas have broadened and opened up the eyes of many young scholars. Where is psychology going? We can only assume with the psychology of yesterday and today that we will delve into a new realm of the psychological world. It is one of great interest. Not all can understand this interest but many are intrigued by psychology. ...

The Legacy of Thomas Jefferson essays

The Legacy of Thomas Jefferson essays On March 04, 1801, Thomas Jefferson was inaugurated president of the United States of America in the new capital of Washington D.C. He was a simple, frugal, and unconventional president. He started the precedent of sending messages to Congress to be ready by a clerk, and some believe that it was he who truly set the two-term precedent for the presidency. Thomas Jefferson instilled his democratic ideals and liberal principles into the forming of the United States of America, and he served Her extensively and faithfully. Through his faithful terms as President of the United States of America he added on to the list of legacies that would survive him through history. His three most important legacies during his presidency were: The peaceful Revolution that took place during his first term; the purchase of the Louisiana Territory; and authorization of the Lewis and Clark expedition. Jefferson won the 1800 presidential election after the House of Representatives settled the electoral-vote tie with his Federalist opponent, Aaron Burr. During his first term, Jefferson attempted to win the allegiance and trust of Federalists by maintaining the national debt and debt-repayment plan of Hamilton, as well as carrying on neutrality policies. He retained the loyalty of republicans by adhering to their guiding principle of limited central government (reduced military size, eliminated the number of federal jobs, repealed excise taxes, and lowered national debt). He also pardoned those serving time under the Sedition Act and enacted a new naturalization law that returned the years needed for immigrants to gain citizenship from fourteen to five. Most importantly, however, Jefferson led a revolution with the peaceful transfer of power from Federalists to Democratic-Republicans, which showed that a change of administration did not have to involve a disastrous outcome. In 1802 the Spaniards at New Orleans ...

Government Sales and Auctions

Government Sales and Auctions What does the U.S. government have going for it when it comes to public sales and auctions? Diversity. From Treasury bills to wild horses and houses, you name it and a government agency probably sells it.Best of all from the consumers standpoint, the government is not out to make a profit, so most items are sold at or below cost or fair market value.Plus, purchasing from the government helps to defer ​the  cost of running the government, which saves taxpayers dollars. Personal Property Sales Some of the best buys available can be found in government sales of personal property. Boats, cars, planes, jewelry, mineral rights, animals and more. Be sure to visit the GSAs Auction SuperSite. Auto Sales Its easy and economical to purchase a pre-owned vehicle from the U.S. government. Join the thousands of people who buy at government auto auctions. Real Property/Real Estate Houses, land, apartments and commercial buildings, farms and ranches. Includes links to information on buying homes from HUD. Into the money market? Financial Assets Treasury bonds, savings bonds, securities, etc. Miscellaneous Sales and Auctions Stamps, coins, jewelry, collectables, souvenirs and more. Buying Advice Before you whip out the plastic, there are  some important basic tips and information you need to know about buying merchandise or property in government sales and auctions: Guide to Federal Government Sales This document from the General Services Agency (GSA) delivers the factual information you need to participate in the Federal Government’s various sales and auction programs. It also helps combat the many misleading advertisements that offer to sell consumers inside information about Federal Government sales and auctions. Buying Raw Land As the Interior Department says, homesteading is a thing of the past, and you will not find free land or land for A-Dollar-an-Acre, but the federal government does sell land. Lands identified as excess to the publics and Governments needs or more suited to private ownership are sometimes offered for sale. The federal lands sold by the Bureau of Land Management (BLM) are generally unimproved rural woodland, grassland or desert parcels located mostly in the western states. The parcels are typically not served by utilities like electricity, water or sewer, and may not be accessible by maintained roads. In other words, the parcels for sale are truly â€Å"in the middle of nowhere.† Buying Used Government Property When items are no longer needed by the federal government, The General Services Administration (GSA) stretches your tax dollar by offering them for sale to the public. GSA sells a wide variety of items that would interest both individuals and businesses. Look here for details and addresses of GSA sales facilities across the nation. How to Buy Surplus Military Property Various commercial firms sell literature regarding the sale of Department of Defense (DoD) property and/or advertise sales of DoD property, and suggest that DoD sells real estate, jeeps, confiscated and seized properly. DoD does not sell these items. The type of property DoD does sell, how it may be purchased is explained in this pamphlet.

Analysis paper Essay Example | Topics and Well Written Essays - 500 words - 8

Analysis paper - Essay Example The whole objective was to encourage a mass consumption drive so that the national economy could sustain and boost a high production drive. The suitable federal programs like Employment Act of 1446 and G.I. Bill of Rights allowed the returning veterans to buy new homes and the consumer goods required to furnish them. This also aided the nation’s Cold War claims that the US was a more equality driven nation in which everybody had the access to a better quality of life. The nation cherished the newfound democratization of consumption that was boosted by the democratization of credit and employment opportunities. However, this new consumer haven based on capitalist democracy and free choice did tend to support many old entrenched gender and class biases. It conveniently sidelined the working class women who had come out in large numbers during the War to aid and strengthen the war efforts. Now that there services were no more required, the system once again intended to give in to the patriarchal notions of American family which upheld the male domination. It again intended to make women dependent on the male choices and decision making capacity. This bias was systematically supported by the gendering of consumption, credit and opportunities for employment. The post World War system also promised to enhance the status of the working class. However, it intended to do so by increasing the purchasing power and consumption capacity of the working class. It no way desired to extend a say and role to the working class in the larger decision making process. Steps were taken to suppress the working c lass say by ensuing measures like the Taft-Hartley Act of 1947 that discouraged labor organization and unionization. The post War scenario in a way upheld and encouraged the deep seated social biases and prejudices by supporting the privileged

Final exam Essay Example | Topics and Well Written Essays - 1000 words - 2

Final exam - Essay Example President Obama won with a landslide because of the extreme challenges that the country was facing due to poor Republican Party leadership under former president Bush administration. Retrospective voting is a type of voting whereby people vote for officials when times are good and against them when times are bad. In this case, parties vying for the various seats compete by emphasizing on competence, the way they reflect on public goals and not by taking particular policy stands. Under retrospective voting, voters do not bother in forming preferences on complex issues, but rather vote depending on their evaluation of the past performance. This means that voters focus only on the most essential issues and it demands very little of the voters. Moreover, politicians have a strong incentive in solving problems that the public wants them solved. Retrospective voting also gives room for deliberation and experimentation of unpopular policies provided the results are pleasing to the citizens before the next elections. Its main disadvantage is the fact that it is not easy to get rid of bad political leaders unless extremely bad disasters happen. Prospective voting on the other hand refers to the type of voting that involves considering the future wellbeing of the citizens or country at large been in the voters mind. Both these two types of voting are very common in the USA. There are many complaints about the US bureaucracies though some of the most common complaints include the issue of duplication of duties as some bureaucracies are said to be too large. Some other people complain about them being too expensive to run with other arguing that they are extremely powerful. The issue of speed is also often raised whenever discussing bureaucracies whereby some people claim that they act very slowly since federal employees seem to have so much job security thus have little fear of losing their jobs because of

Cheese defects and prevention Essay Example | Topics and Well Written Essays - 500 words

Cheese defects and prevention - Essay Example The first defect is known as corky. It is a defect that is characterized by being dry and hard. Dryness is as a result of low moisture and hardness may be attributed to low fat content in the cheese. The hardness produces very strong resistance against the tier during penetration. These defects are as a result of various causes. They can arise in the development stage where there is lack of acid. Additionally, the defects can be caused by presence of high salt content in the moisture phase of production and use of excessive calcium chloride which negatively affects the quality of the cheese. More so, studies have indicated that lack of adequate coagulants in production leads to the defects. On the contrary, the defects can be avoided or eliminated by following the standard procedures in cheese making very accurately. The cheese making process should be thoroughly assessed to ensure that the recommended procedures are followed to latter in order to produce high quality cheese (Britz 2 008). Crumbly is another defect found in cheese. It is characterized by the tendency of falling apart when sliced. It also appears to be dry but not as compared to corky cheese. This defect seems to occur in an aging cheese, for instance when it is ten months old but in this respect is is termed as a friable body cheese. Crumbliness of cheese arises as a result of the level of acid produced exceeds the desired level during the cheese making process. It may also occur as a result of the cheese retaining very low moisture content hence the defect. This defect can be avoided by ensuring that the level of moisture produced is maintained as well as the level of acid development. Another remedy is to avoid ripening at very high temperatures (Lawrence 1987). Other defects of cheese include curdy, pasty and softness or weak cheese. The curdy defect of cheese is caused by lack of adequate curing in cheese. This defect can

Police Corruption Research Paper Example | Topics and Well Written Essays - 4250 words

Police Corruption - Research Paper Example There is a wide range of police jurisdictions and considerable costs are paid by the society in general as well as the police services as a result of such misconduct. Herman Goldstein defines it as â€Å"acts involving the misuse of authority by a police officer in a manner designed to produce personal gain for himself or others.† It is a larger systematic problem which is due to the lack of overall transparency, no check and balances, weak rule of law and insubstantial institutions. Police Corruption generally occurs at two levels: In the office i.e. behind the scenes or on the streets such as bribery or involvement with criminals. The backroom corruption activities involve irregular practices such as negligence in enforcing internal discipline, stopping of investigations, payments for transfers or appointments and contracting. All these unethical and mischievous acts involve very large transactions and are committed by officers having command authority (mid or senior-level o fficials) and access to the privileged information. Officers avail such opportunities in pairs or alone in the absence of supervisors or any higher authorities. The extent may vary from petty corruption to large scale criminal acts which are endowed by the extra ordinary powers given to the police officials. In the 1980s and 1990s, corruption cases occurred on a very large scale involving and later charging police officers for drug dealings, robberies, batteries and even murders etc. It can be observed that there are two major elements of police corruption namely misuse of authority/power and misuse of personal attainment. At each level, these elements are misused in one way or the other posing a great hindrance in the efficient and effective working of the police department. It can be said that police officials have been a part of encouraging and creating crime rather than deterring it. In this report the causes of police corruption will be discussed and ways such as increased sala ries, training, education incentives, health and insurance benefits and policies that focus on such issues will be identified to eliminate or reduce corruption. Types of Police Corruption: Some major forms of police corruption are discussed below: Gratuity: This refers to the illegal or inappropriate use of power by police officers in order to arrest, coerce, harass, intimidate or assault people. It is a serious crime because the society in general relies on police to safeguard their social security and rights. They are given power to use it for the right purpose and intention but wrongful use of this authority has resulted in many unjust incidents. Police brutality, sexual harassment, illicit use of weapons, fake encounters are the most common ways of misusing the authority. Brutality is a form of physical abuse which occurs when officers want to teach a lesson to any citizen or unnecessary force them for the intended action. Police officers also engage in crimes that has nothing t o do with their professional duty such as insurance of fraudulent activities. It is very difficult to get the accurate statistics of police misconduct and abusive behaviour as they normally don’t release any detailed information on disciplinary issues. Kickbacks: It is a secret payment made to the police officers in the form of contracts or transactions in order to change the course of action and support a wrongdoing/ illegal action. They are considered as fringe benefits of the job by the officers. The

How the Field of Business Has Been Impacted by E-Commerce Research Paper

How the Field of Business Has Been Impacted by E-Commerce - Research Paper Example Specifically, technological power of the present age reflects in computer and internet. Internet has brought myriad of wonders with its evolution, one of which happens to be E-commerce. â€Å"E-commerce is a commercial activity dealing directly with the trading of goods and services and with other related business activities, in which the electronic communication medium plays a central role.† (Heng, 2003, p. 104). Such activities include but are not limited to the payment management, spread of information, transport management and negotiation of financial tools. E-commerce has increased the national output by 2.7 per cent (Heng, 2003, p. 109). In October 1999, Sheikh Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai declared emirate’s intention of developing a â€Å"Dubai Internet City† (Martin, 2000). The Internet commerce was expected to increase from 26 per cent to 46 per cent of the worldwide expenditure from 1998 to 2003 (O’Briant, 2000). ... Because of its ability to connect people spread all over the world to one another simultaneously, internet happens to be a blessing for the e-commerce because businesses can advertise and sell their services and products online. Also, e-commerce benefits the consumers as they are able to gain firm understanding of the quality of a particular service or product prior to purchase through online discussions at social media websites. This enables the consumers to spend wisely and purchase only high quality services and products. E-commerce was very much there even before the introduction of internet, but in slightly different form. When internet wasn’t there, companies used such private networks as the Electronic Data Interchange (EDI) in order to do business with other companies. Back then, e-commerce was in an immature state. Companies had to incur a lot of expenses in the installation and maintenance of their private networks. Internet eradicated all those additional expenses a nd e-commerce flourished and spread far and wide in a matter of days. In this way, internet provided business entrepreneurs with a means to maximize the profitability of their businesses and minimize the expenses. In addition to that, internet served as an excellent means of spread of knowledge. Even if companies do not pay a dime for the advertisement of their products, they can create awareness among the public about them through social media websites. Numerous examples can be cited to prove the impact of e-commerce on business in the contemporary age. Blockbuster did business in retailing and renting of video games and VHS tapes DVD. Their products and services were fundamentally meant to provide the

Police Corruption Research Paper Example | Topics and Well Written Essays - 4250 words

Police Corruption - Research Paper Example There is a wide range of police jurisdictions and considerable costs are paid by the society in general as well as the police services as a result of such misconduct. Herman Goldstein defines it as â€Å"acts involving the misuse of authority by a police officer in a manner designed to produce personal gain for himself or others.† It is a larger systematic problem which is due to the lack of overall transparency, no check and balances, weak rule of law and insubstantial institutions. Police Corruption generally occurs at two levels: In the office i.e. behind the scenes or on the streets such as bribery or involvement with criminals. The backroom corruption activities involve irregular practices such as negligence in enforcing internal discipline, stopping of investigations, payments for transfers or appointments and contracting. All these unethical and mischievous acts involve very large transactions and are committed by officers having command authority (mid or senior-level o fficials) and access to the privileged information. Officers avail such opportunities in pairs or alone in the absence of supervisors or any higher authorities. The extent may vary from petty corruption to large scale criminal acts which are endowed by the extra ordinary powers given to the police officials. In the 1980s and 1990s, corruption cases occurred on a very large scale involving and later charging police officers for drug dealings, robberies, batteries and even murders etc. It can be observed that there are two major elements of police corruption namely misuse of authority/power and misuse of personal attainment. At each level, these elements are misused in one way or the other posing a great hindrance in the efficient and effective working of the police department. It can be said that police officials have been a part of encouraging and creating crime rather than deterring it. In this report the causes of police corruption will be discussed and ways such as increased sala ries, training, education incentives, health and insurance benefits and policies that focus on such issues will be identified to eliminate or reduce corruption. Types of Police Corruption: Some major forms of police corruption are discussed below: Gratuity: This refers to the illegal or inappropriate use of power by police officers in order to arrest, coerce, harass, intimidate or assault people. It is a serious crime because the society in general relies on police to safeguard their social security and rights. They are given power to use it for the right purpose and intention but wrongful use of this authority has resulted in many unjust incidents. Police brutality, sexual harassment, illicit use of weapons, fake encounters are the most common ways of misusing the authority. Brutality is a form of physical abuse which occurs when officers want to teach a lesson to any citizen or unnecessary force them for the intended action. Police officers also engage in crimes that has nothing t o do with their professional duty such as insurance of fraudulent activities. It is very difficult to get the accurate statistics of police misconduct and abusive behaviour as they normally don’t release any detailed information on disciplinary issues. Kickbacks: It is a secret payment made to the police officers in the form of contracts or transactions in order to change the course of action and support a wrongdoing/ illegal action. They are considered as fringe benefits of the job by the officers. The

Managing Human Resources in health and social care Essay

Managing Human Resources in health and social care - Essay Example The identification of the methods to be used in the recruitment process is crucial. The selection of the target candidates to be catered, the required skills and other essentials are analysed and set accordingly. All the attributes required from the new employees must be properly evaluated and examined. The last part is to analyse the possible channels through which the candidates are to be attracted (developing the Job Positioning). The promotions and advertisement come under the job positioning. The possible channels may be newspaper ads, and other internal and external mediums are available to the organizations to advertise the job position to the target audience. The recruitment and selection policies must be designed in a way that fits the legal context (UK legislations related to the Recruitment and Planning). St. Patrick Nursing Home must ensure that the employees that are selected must know the Jon Title, Wages, Hours of Work, Holiday entitlement, Sick pay, Pension Schemes, notices and the dismissal procedures and policies. These are called the â€Å"Written Statement of Terms.† The employees must be expressed with this within two months of their job initiation. The employees must be provided with an â€Å"Itemized pay slip†. It means that the employees must be paid for the work they have done. The employee also has the right to be paid for the time he was in the workplace without any work; the employer does not provide him with work. By following all these Laws while planning the recruitment process will help the nursing home to attract more effective and efficient workforce. The motivation levels of the employees will be high, and they will work according to the â€Å"Requirements of the Care Quality Commission†. †¢ The need for proper advertisement of the job through suitable channels is important that will help

Homeless essay Essay Example for Free

Homeless essay Essay Most homeless people are responsible for their own problems. Do you agree? In this essay I will be pointed out facts about the homeless people in London and I will be analysing if it is there fault for being homeless or our fault. There are thousands of people who roam around the streets of London looking for a patch to sleep and somewhere to eat. Children and adults leave there houses because of family problems and many more scenarios. There are many people living around the streets of London and the world. They face problems that force them to leave there home and the majority of the time it is because of money problems and family problems. They leave houses to travel the streets and live in alleyways and face the whether which can turn bad in the winter. The question that I will investigate is it their fault that there homeless. The majority of homeless people are homeless because it has been their fault. Their problems that they have faced have pushed them to leave home and loose any luxuries they had. Any homeless people do not even try to gain a job to support them in any way. Many people think that they should get a job as many do have some qualifications that can help them. This is a sign of being lazy which cannot benefit them in any way and they deserve to be homeless if they act in this way. They clanger ways to get moneys from people by begging in crowded areas and doing an act to endure people to give money. This is the easy route out and if homeless people do this then no simperfy should be given. More than three hundred thousand was given to beggars over a period of two months n London and was spent on drugs and alcohol. This is a good example of why no money should be given to beggars, as they will only harm themselves and people around them. Many homeless people by the drugs because they fell that they have nothing and drugs might be a way to get a boost to survive day-to-day life on the streets. Many homeless people refuse shelter because they think that they can get by without them. This is a sign of being shellfish and people shouldn’t tolerate it. Many immigrants flee to the UK because they think that it is their escape route out of their country because of poverty or war. They come into this country and such onto our money that has been give. They stay homeless for a while and as soon as a chance comes they will take it. They should get out and get a job because it will help them and maybe their future family. Many homeless people who have no options available to them do drastic things to gain some money to support them for the day or week. Many professional all beggars get eighty pounds a day, which is tax-free. This is ridiculous as it is more than people get in a day for going out and doing work. This is a prime example as to why money shouldn’t be given to them. Some homeless people who want to get out of the situation cannot because they are too lazy to find out information about numbers to call for help such as childline and social services. There is an magazine that can help the homeless it is called the big issue and it aim to help the homeless by telling them what to do and numbers to call. It is a big help for people who want to get out of the situation. It is a free paper and could get homeless people back on a property. I think that some homeless people are to blame themselves, as they do not want help of any sort. In this part of the investigation I will be analysing the support side to this argument. There is another side to which I think that is to be announced about homeless people. The things that have happened to them are not their fault. This problem could of happened to anyone. This is why there are many charities open to help the homeless who will provide food and a shelter for them to sleep in. the big issue is a big help. Keith smith at thebig issue agrees that it is not fair to tell people that they mustn’t give money to beggars. The government has made a good contribution to this case, as ninety two per cent of families are now living in tempary accommodation in a good maintained house with a bath, bedrooms and living room. The government hopes to get as many homeless people into homes by 2010. This is a great achievement for the people who want to move home. There are many groups that go into the streets and provide food and shelter to the homeless. People should give money to charities because it will have more of an effect as if you give it to the homeless in person they could just by drugs or alcohol with it. I think in my judgement that homeless people are not to blame, as they cannot help was has happened to them. They need help, which is provided by different services. A small amount of money is all that is needed to support them. With a new priminister in power I think that he will tackle the problem in a quick way. He could bring the time from 2010 to now which could help the homeless even more.

Islamic Banking Deposits and Profitability Relationship

Islamic Banking Deposits and Profitability Relationship The purpose of this research study is to analyze the impact of Islamic Banking Deposits (Investment, Savings and Current accounts) on the profitability measure ROE of the Islamic banking industry in Paksitan. For this purpose, time series data of eleven quarters covering the period 2007 to 2009 is taken for the required variables from State Bank of Pakistans quarterly editions of the Islamic banking bulletin. The results showed that all the deposit variables had a significant positive relation with the profitability of Islamic banks. The aim is to contribute to the literature on deposit-profitability relationship of Islamic banks. Islamic banking is a banking activity based on Islamic principles, which do not allow the paying and receiving of interest (riba) and promotes profit sharing in the conduct of banking business. (Ghazali, 2008). According to the latest quarterly edition of State Bank of Pakistans Islamic Banking Bulletin?, the total Shariah-compliant assets worldwide have grown to about US$ 700 billion â€Å" with annual growth exceeding 10.0 percent during the past decade and are projected to grow to US$ 1.6 trillion by 2012. State Bank of Pakistans strategic plan for Islamic banking industry launched in 2008, aims to increase the size of the Islamic banking industry to 12.0 percent (of total banking assets) by 2012. Islamic financial institutions do not only play a vital role in resource mobilization, resource allocation and employment but are also actively involved in the course of implementing government monetary policy. Apart from offering nearly all traditional banking facilities, Islamic banks also assist domestic and international trades. Seeing the potential of the Islamic market, western conventional-based financial institutions such as Citibank, JP Morgan, Deutsche Bank, ABN Amro and American Express have introduced interest-free products to customers. Similarly, multinational corporations such as General Motors, IBM and Dewoo Corporation have already begun to use interest-free services.(Haron and Azmi, 2003). Studies that assess the influence of various factors that determine Islamic banks profitability are still at initial stage. Few attempts have up till now been made to empirically analyze the Islamic banks performance. In the Islamic banking literature, the work of Haron (1996a) was the first attempt to examine factors that contributed towards Islamic banks profitability. Most of the research used multiple regression analysis technique in measuring the relationship among the determining factors and profitability ratios. Extending the previous work in Islamic banks performance, this paper examines the strength of relationship between deposit variables and profitability of Islamic banks using univariate regression methodology. By studying the association between Islamic banksÃ… ¸ performance and the deposit variables, this paper contributes to the on-going discussion on the deposits and profitability relationship of Islamic banks. The paper is divided into seven sections. The literature review on determinants of Islamic bank performance is highlighted in Section 2. Section 3 examines the methodology used in analyzing the relationship between the deposits variables used in this study and the performance of Islamic banks. Section 4 presents the discussion and implication. The references are listed in section 5. The tables are listed in section 6 and figures in section 7. Literature Review The whole foundation of Islamic Finance is that the two sides of the equation (i.e. the fund-providers and the fund-users) work in agreement as partners, without depositors being assured of any return from those who use their money. In practice, Islamic banks draw approximately three-quarters of the capital from their depositors, and do not guarantee any precise level of return to these fund-providers. (Shubber and Alzafri,2008). Ghafoor (1995) states that all Islamic banks have three kinds of deposit accounts: current, savings and investment. Current or demand deposit accounts are almost the same as in all conventional banks. Deposit is assured. Savings deposit accounts function in different ways. In some banks, the depositors permit the banks to make use of their money but they attain a guarantee of being paid the complete amount back from the bank. Banks adopt a number of methods of inducing their customers to deposit with them, but profit is not promised. In others, savings accounts are treated as investment accounts but with less strict conditions as to withdrawals and minimum balance. Capital is not assured but the banks take care to invest capital from such accounts in fairly risk-free short-term projects. Therefore, lower profit rates are expected and that too only on a section of the average minimum balance on the ground that a high level of reserve funds need to be kept at all times to meet up withd rawal demands. Contrastingly, Investment deposits are accepted for a predetermined or indefinite period of time and the investors consent in advance to share the profit (or loss) in an agreed proportion with the bank. Capital is not assured. (Ghafoor, 1995). Some IFIs (Islamic Financial Institutions) classify deposits in terms of wadiah or amanah. Current accounts of IFIs are regarded as qard hasan or qard (alternatively, as wadiah/amanah). (Farooq, 2008). Qard al-Hasana is defined as deposits whose full repayment on demand is guaranteed by bank. (Ahmad, 1994). The deposits in the current account are regarded as if they are loans from the customers to the bank and therefore, bear no yield to the account holders.? (Al-Jarhi and Iqbal. 2001). Deposit accounts are neither a liability nor equity capital. They are a hybrid? source of capital, and must be acknowledged as such. Depositors are partners with the bank, but enjoy no ownership rights. (Shubber and Alzafri,2008). Sudin Haron (1996) mentions that the law allows the banks to accept two types of deposits, i.e., qard al-hasanah deposits and term investment deposits. The qard al-hasanah deposits includes current as well as savings accounts which vary in their operational rules. (Ahmad, 1994). If it is allowed that the borrower can pay extra money voluntarily, then treating deposits as qard-hasan allows the banks as the borrowers to pay extra money to the depositors (lenders). Unlike savings account services at conventional banks, where depositors are automatically rewarded upon appointment of their funds, returns to savings account holders are reliant on the Shariah (Islamic laws) principles which are practiced by Islamic banks when offering this service. When wadiah (trusteeship) or qard hassan (benevolent loan) are used, the returns are entirely at the discretion of the banks. (Sudin Haron, 1996). Nienhaus, (2004) argues that if the customers of Islamic banks desire a return on their funds, they should pay into investment accounts (also called participation accounts or PLS, profit and loss sharing accounts). Whereas, credit balances on these accounts are not considered deposits in the conventional sense. The returns on Islamic banks investment accounts are not fixed in advance; the customers participate by a certain proportion in the financial outcome of the utilization of their investment funds by the bank. These results could also result in a loss. In case of loss, the clients will have to bear a portion of the loss which would reduce the nominal value of the credit balances of their respective investment accounts. In such a situation, the clients cannot claim a full reimbursement of the money paid in. The full reimbursement, however, is constituent for a deposit in the strict sense. (Nienhaus, 2004). Rosly and Zaini, (2008) say that the public in general put their money in banks for either fulfilling transactional needs or for investment needs. To suffice the transactional objective, Islamic banks offer services such as wadiah yad dhamanah deposit, which facilitates safekeeping of their deposit money with guarantee services. In this product, depositors no longer deposit funds to receive a fixed income. Instead, they place their deposits for protection.`Wadiah yad dhamanah means safekeeping with guarantee. Wadiah yad dhamanah depositors permit the Islamic bank to invest their money in return for deposit safety that they got for free. Since the caretaker service is given without a fee, the Islamic bank holds no legal compulsion to pay depositors a predetermined return and may do so only on voluntary basis. In this way, the bank holds choice on profit distribution policy in the form of gift (hibah). The same is not correct for Islamic fixed deposits, frequently known as mudarabah in vestment deposits. In this partnership composition, no guarantee is given to capital protection and fixed income, as it runs under equity principle. It is a precarious product as the underlying contract is based on profitâ€Å"loss sharing system. Profits are shared only in case of performing investments, while capital may depreciate or even shrink if the investment ends in losses. (Rosly and Zaini, 2008). Haron and Azmi, (2004) discuss that similar to conventional banks, Islamic banks also rely on depositors money as a key source of fund. Bank Muamalat Malaysia Berhad for example, had total deposits amounting to 94 percent of total liabilities and shareholders equity at the end of December 2003. While in the case of Jordan Islamic Bank, Islamic Bank of Bangladesh, Bank Muamalat of Indonesia, and Bank Shariah Mandiri of Indonesia, the corresponding amounts were 94%, 86%, 76%, and 79%, respectively. These figures reveal the vast high total of the depositors money as a supply of finance for Islamic banks. Hence, it becomes indispensable for the management of Islamic banks to identify the factors that are most likely to convince customers decision making in depositing their capital with Islamic banks. (Haron and Azmi, 2004). With the exception of a study done by Metawa and Almossawi (1998) where religion was seen as a reason influencing customers choice to support Islamic banks in Bahrain, other studies have proven counter wise. The evidence from studies done in Sudan and Turkey, for example, revealed that religion was not the main motive for customers choosing Islamic banks (Erol and El-Bdour, 1989). Likewise, studies conducted in Malaysia and Singapore revealed both religion and profit as the explanation for people maintaining their association with Islamic banks (Haron et al., 1994; Gerrad and Cunningham, 1997). Since depositors are attracted by profits, it is vital for Islamic banks management to be aware of the fact that return rates on deposits persuade their customers decision to deposit. (Haron and Azmi, 2004). Relating to commercial banks deposit composition, Hester and Zoellner (1966) and Heggested (1977) found that time and savings deposits had a significant inverse correlation with profitability. Smirlocks (1985) findings demonstrated a significant positive relationship amid demand deposits and profits. In contrast, Fraser and Rose (1971) found that loan rate; time deposit rate and loan-to-deposit ratio had no outcome on profitability. Haron (1996a) found evidence to suggest that current, savings and investment accounts of Islamic banks are positively related to profitability. Fraser et al (1974) considered operating costs, deposit and loan structures as factors within the control of management and found that the factor which had the biggest control on bank performance was bank cost followed by banks deposit and loan composition. Heggested (1977) proved that banks heavily devoted to time and savings deposits earned considerably lower returns than banks which have higher reliance on demand deposits. Smirlock (1985) confirmed that demand deposits were a cheaper source of funds and had a positive impact on bank profits. In the literature, the majority of studies found that savings and time deposits have a negative relationship with profitability, while a positive relationship has been found for current account deposits. Haron (2004) found that nearly all deposit structure variables had no significant relationship with the profitability ratios. Deposits in current account, was the only variable which had a significant relationship with Banks portion of income as a percentage of total assets and Net profit before tax as a percentage of total assets. Each 1% increase in the current account holdings increased the banks income by 0.034% and profit before tax by 0.036%. This end result was in line with the findings reported by Smirlock (1985). Since a current account service is considered a cost-free facility, it is anticipated that the more funds deposited into this account, the more Islamic banks would stand to profit. Interestingly, no significant relationship was found between current account deposits and Total income as a percentage of total assets, which implied that an increase in current accounts does not generate more proceeds to the bank as a whole but only functions as a cost saving measure. That is, no returns are paid to these depositors. In the case of savings and investment accounts, even though their relationships with all profitability ratios were at an insignificant level, the signs of their regression coefficients warranted further clarification. No contradiction with the findings of conventional banking literature with regard to savings accounts was apparent. A negative relationship was found between Savings account deposits and the profitability measures. This result suggests that any increase in savings accounts will reduce profits and it corresponds to the findings in the current banking literature (see for example Hester and Zoellner, 1966; and Heggested, 1977). The results on Investment account deposits in Harons (2004) study are not similar to those findings reported in earlier researches. Hester and Zoellner (1966) and Heggested (1977), for example, found that fixed deposit facilities had an inverse relationship with profitability. Since some of the characteristics of investment deposits at Islamic banks are similar to the fixed deposit facilities of conventional banks, it is expected that more funds deposited into these accounts would result in less profit to the bank. In contrast, Smirlock (1985) believed that an increasing amount in fixed deposits would have a positive relationship with a banks profitability. Harons (2004) study found that Investment account deposits had a positive relationship with all profitability measures and thus, confirmed Smirlocks hypothesis. Haron and Azmi (2004) attempted to investigate the strength of influence between both internal and external variables and profitability of Islamic banks in selected countries using timeseries techniques of cointegration and error-correction mechanism. They found a significant long-run relationship between profitability measures of Islamic banks and determining variables such as liquidity, deposit items, assets structure, inflation and money supply. They also found that Investment account deposits was the only variable which had a significant relationship with all three profitability ratios. For Current account deposits, a positive relationship was found with Banks portion of income as a percentage of total assets. The result indicated that a 1% increase in current account holdings increased the banks portion of income by 0.064%. Given that current account facility is a cost-free service, the more funds deposited into this account, the higher profits will be made available to Islamic banks. Interestingly, current account deposits had no significant relationship with Total income as a percentage of total assets implying that an increase in current accounts does not generate more income to the bank, but only functions as a cost saving measure. On other words, Islamic banks do not pay any rewards to their depositors. These results were in line with the findings of Haron (1996a, 2004). Savings deposits variable was found to have a significant positive relationship with Total income as a percentage of total assets. For every 1% rise in savings account, total income increased by 0.26%. This was in line with normal banking practices whereby Islamic bank could use the funds deposited in this account for productive purposes and thus, generating additional revenue for the bank. Increases in deposits size has a positive impact on Earnings per share (EPS), as a portion of depositors profits is minused as a fee for the benefit of the bank and its shareholders. (Shubber and Alzafri, 2008). Returns on Islamic deposits are though flexible in nature since returns are based on performance rather than contracted upfront as evident in all interest bearing deposits. Although the mudarabah rates (investment deposit rates) are quoted using the rates given in the previous months, they are not fixed beforehand and serve as an indicative rate of return on Mudarabah deposits (ROMD). The Mudarabah (investment deposits) contract works along profitâ€Å"loss sharing principles while fixed deposits of conventional banks are based on the contract of debt. As an equity product, a Mudarabah deposit offers no principal protection and legal claims against any form of returns. To make up for the risk exposure of the product, Mudarabah depositors are expected to be given higher retur ns relative to that of commercial banks fixed depositors who avoided risk. (Rosly and Zaini, 2008). Haron and Shanmugam (1995) in their study try to link the profit rates to Islamic banks deposits. Using Pearsons Correlation and First Order Autoregressive model, they found strong negative relationship between the two variables. Likewise, their finding showed a positive linear relationship between conventional and Islamic bank deposits. Haron and Ahmed (2000) argue that people who placed their deposits at saving and investment account facilities were guided by the profit motive. The utility maximization theory amongst the Muslim customers was further confirmed by the negative relationship between the rate of interest in conventional banks and the sum deposited in interest-free deposit facilities. Muslims should be guided by Islamic doctrines when making their economic decisions. Therefore, role of educating people regarding Islamic banking system should be played globally. It is indeed a challenging task. (Haron and Ahmed, 2000). Shubber and Alzafri, (2008) say that EPS (Earnings per share) improves as the level of deposits increases, as depositors were viewed as sharers in the profit and loss, rather than being entitled to a fixed interest rate. This supports that increasing deposits have a positive impact on EPS (Earnings per share). Increasing deposits, therefore, do not direct any increment in the cost of equity. In fact, equity holders benefited from larger deposits, as owners of the latter pay out management fees, which is deducted from the depositors share of the profits. Also, the market value of Islamic banks is independent of WACC. (Shubber and Alzafri,2008). Haron and Azmi (2004a) demonstrated that with the exception of fixed and investment deposits, any increase in rates of interest, deposits at conventional system will increase and deposits at Islamic system will decrease, and vice-versa. As for the fixed and investment deposits, ambiguous results were found. One possible explanation for this is that rates of profit for deposits at Islamic system are known at the end of the deposit period and not at the beginning as opposed to the conventional system. Any upward changes in interest rate of conventional system will have an adverse impact to the deposit levels in the Islamic system. Therefore, rates of profit of Islamic system must at any time be similar to those of the conventional system. Finally, religious dimension can be considered as an important element to attract more people to deposit their funds in the Islamic system. This could also be the reason why more and more conventional banks are starting to offer Islamic banking facili ties to their customers not only in Malaysia but also to other parts of the world. (Haron and Azmi, 2004a). Hasan and Bashir (2003) argue that the rising contest and continuous innovation to provide financial services, all contribute to a increasing interest in a detailed evaluation of Islamic banks. Depositors are interested in evaluating the performance of their banks since they are not given fixed returns and the nominal values of their deposits are not assured. In trying to make best use of the value of shareholders investment, Islamic banks are exposed to risks. Hence, analyzing the Islamic banks performance is important from economic and public policy perspectives. (Hasan and Bashir, 2003). Methodology This study uses univariate regression analysis to examine the relationship between deposits and profitability of Islamic banking industry in Pakistan. Univariate regression is a method of regression analysis that uses one explanatory variable to predict values of a single dependent variable. SPSS software is applied to obtain the univariate regression. In this study, three independent variables titled Fixed deposits, Savings Deposits and Current account deposits have been used. The dependent variable of profitability is measured by ROE which is the ratio of a banks net after-tax income divided by its total equity capital. The return on equity (ROE) is considered to be one of the profitability performance ratios (Tarawneh, 2006). It indicates how effectively the management of the bank is able to turn shareholders funds (i.e. equity) into net profit. ROE (Return on Equity) has been tested separately for the three independent deposit variables to avoid the issue of multicollinearity sin ce all the deposit variables are highly correlated to each other. This paper attempts to test three hypotheses. According to Becker (1995), hypothesis testing is the process of judging which of two contradictory statements is correct. Hypothesis 1: Investment Deposits increase the profitability of Islamic banks. Hypothesis 2: Saving Deposits increase the profitability of Islamic banks. Hypothesis 3: Current Account Deposits increase the profitability of Islamic banks. The data for this study is time series data taken from the quarterly editions of the Islamic banking bulletin? published by the State Bank of Pakistan. These bulletins publish the consolidated financial statement variables representing the entire Islamic banking industry of Pakistan including all the full fledge Islamic banks (Al Baraka Islamic bank, Bank Islami Pakistan limited, Dawood Islamic bank Limited, Dubai Islamic bank limited, Emirates Global Islamic bank Ltd and Meezan Bank Ltd.) as well as the Islamic branches of conventional banks (Askari Bank Limited, Bank Al Falah Ltd., Bank Al Habib, Faysal Bank, Habib Metropolitan bank, MCB Bank Ltd, National bank of Pakistan, Soneri Bank Ltd, Standard Chartered Bank, The Bank of Khyber, Royal bank of Scotland, United Bank Ltd). The sample period for this study is limited from 2007 to 2009 as most of the Islamic banks started operations from 2007 in Pakistan. Hence, the consolidated data of the eleven consecutive quarters has been use d in this study. The general equations of the three models are: Profitability = b0 + b1(ID)(1) Profitability = b0 + b1(SD)(2) Profitability = b0 + b1(CD)(3) Where, b0 = intercept (constant) Dependent variable: Profitability = ROE (Return on Equity) Independent variables: ID = Investment Deposits SD = Savings Deposits CD = Current Account Deposits Results The results of the regression analysis for model.1, 2 and 3 are shown in Tables 1, 2 and 3 respectively. All the three models were significant at the 5% level of significance. The value of the adjusted coefficient of determination (adjusted R2) for ROE in model.1 is 0.4 which demonstrates that 40% of the variability in total is explained by its linear association with Fixed deposits variable. As for model 2 and 3, the corresponding values of adjusted R2 are 0.399 and 0.377 respectively. A relatively small value of adjusted R2 does not necessarily mean that the model is in appropriate to measure the relationship between independent and dependent variables. (Haron, 2004). The value of adjusted R2 is usually influenced by a number of predictive variables relative to the sample size and it becomes smaller as we have fewer observations per predictor variable (Hair et al., 1995). To provide a rationale for the variance in R2 and adjusted R2 values, the Dublin-Walter test was conducted. The Dublin-Walter statistics values for all the three values were less than two which proves that the variance was due to negative autocorrelation in the sample observations. Also, the adequacy of a model for predicting is validated by the F-test. (Haron, 2004). As presented in Table 1, 2 and 3, all F-ratio values are statistically significant at 5% significance level for all profitability models. Hence, these results confirmed that the models applied were useful for measuring the relationship between deposits variable items and the profitability variable. Discussion The results supported all the three hypotheses that Investment, Savings and Current account deposits increase the profitability of Islamic banks. This result is in line with Haron (1996a, 2004) who founded evidence to suggest that all three sources of funds (current, savings and investment accounts) for Islamic banks are positively related to profitability. Hypothesis 1 of this study suggested that investment deposits increase the profitability of Islamic banks. The results show that the value of the adjusted coefficient of determination (adjusted R2) for ROE in model.1 is 0.4 which demonstrates that 40% of the variability in total is explained by its linear association with investment deposits variable. Hence, results support Hypothesis 1. Similarly, hypothesis 2 stated that savings deposits increase the profitability of Islamic banks. The results show that the value of the adjusted R2 for ROE in model.2 is 0.399 at 5% significance which shows that 39.9% of the variability in total is explained by its linear association with savings deposit variable. Hence, results also support Hypothesis 2. Finally, hypothesis 3 proposed that savings deposits increase the profitability of Islamic banks. The results show that the value of the adjusted R2 for ROE in model.3 is 0.377 which shows that 37.7% of the variability in total is explained by its linear association with savings deposit variable at 5% level of significance. Hence, results support Hypothesis 3 also. All these results were significant at a 5% level of significance. Referring to previous literature, the results are mixed. In the literature, most studies found that savings and investment deposits have an inverse relationship with profitability, while a positive relationship has been found for current account deposits. In this study, the current account deposit variable had significant positive relationship with profitability. This result is in line with the findings reported by Smirlock (1985), Haron (1996a, 2004) and Haron Azmi (2004). Since a current account service is considered a cost-free facility, it is expected that the more funds deposited into this account (current), the more Islamic banks will stand to profit. In the case of savings deposits, a positive relationship was found between these deposits and profitability. This result suggests that any increase in savings accounts will increase profits and this is in line with Haron (1996a) and Haron Azmi (2004) as Islamic banks can use these savings funds deposited in this account for productive purposes and therefore, generating additional revenue for the Islamic banks. The results on investment deposits in this study are not similar to most of the findings reported in commercial banking literature. For example, Hester and Zoellner (1966) and Heggested (1977) found that fixed deposit facilities had an inverse relationship with profitability. In contrast, Smirlock (1985), Haron (1996a, 2004), Haron and Azmi (2004) believed that an increasing amount in fixed deposits would have a positive relationship with a banks profitability. This study found that investment deposits had a positive relationship with all profitability measures and thus, confirmed Smirlocks, Harons and Azmis hypothesis. In light of the above findings, Islamic banking provides a better and ethical alternative that is not only Riba-free according to the rules of Shariah but also profitable to depositors and investors since all the deposit accounts are positively correlated to profitability. Since, Islamic banking provides three different interest-free deposit facilities to its depositors and investors to facilitate them according to their financial needs, people should invest in these deposit accounts in order to patronize the Islamic banking industry and to receive good returns in the form of hiba from these Islamic banks. In addition, Ghazali (2008) suggests that Islamic banking is indeed relevant to the current economic crisis. The global financial meltdown stemming from the US actually poses an opportunity for the Islamic banking system to demonstrate its distinctiveness. The financial meltdown revealed the desperate need for a system like Islamic finance, based on the principle of profit-sharing where both parties are subjected to probable losses and returns. It is a fair and just system. This is contrasting to the conventional system, where Islamic banks do not acquire or trade debt; rather they manage substantial assets which are tied to real economic activities.. This is really an opportunity for the Islamic financial community to reveal to the global market that the Islamic financial system is actually a robust and feasible alternative to the conventional interest-based system. Hence, people should support the Islamic banking industry worldwide since deposits are positively related to the profitability of Islamic banks. Hence, increased deposits would result in higher profitability of Islamic banks which in return would provide higher returns to its depositors. This would finally lead to implement a justified and ethical economic system which encourages a fair distribution of wealth and resources throughout the society. This study can be extended to include more time series and cross-sectional data of Islamic banks of other countries. The study may also be extended to cover other determinants of Islamic banking profitability. Islamic Banking Deposits and Profitability Relationship Islamic Banking Deposits and Profitability Relationship The purpose of this research study is to analyze the impact of Islamic Banking Deposits (Investment, Savings and Current accounts) on the profitability measure ROE of the Islamic banking industry in Paksitan. For this purpose, time series data of eleven quarters covering the period 2007 to 2009 is taken for the required variables from State Bank of Pakistans quarterly editions of the Islamic banking bulletin. The results showed that all the deposit variables had a significant positive relation with the profitability of Islamic banks. The aim is to contribute to the literature on deposit-profitability relationship of Islamic banks. Islamic banking is a banking activity based on Islamic principles, which do not allow the paying and receiving of interest (riba) and promotes profit sharing in the conduct of banking business. (Ghazali, 2008). According to the latest quarterly edition of State Bank of Pakistans Islamic Banking Bulletin?, the total Shariah-compliant assets worldwide have grown to about US$ 700 billion â€Å" with annual growth exceeding 10.0 percent during the past decade and are projected to grow to US$ 1.6 trillion by 2012. State Bank of Pakistans strategic plan for Islamic banking industry launched in 2008, aims to increase the size of the Islamic banking industry to 12.0 percent (of total banking assets) by 2012. Islamic financial institutions do not only play a vital role in resource mobilization, resource allocation and employment but are also actively involved in the course of implementing government monetary policy. Apart from offering nearly all traditional banking facilities, Islamic banks also assist domestic and international trades. Seeing the potential of the Islamic market, western conventional-based financial institutions such as Citibank, JP Morgan, Deutsche Bank, ABN Amro and American Express have introduced interest-free products to customers. Similarly, multinational corporations such as General Motors, IBM and Dewoo Corporation have already begun to use interest-free services.(Haron and Azmi, 2003). Studies that assess the influence of various factors that determine Islamic banks profitability are still at initial stage. Few attempts have up till now been made to empirically analyze the Islamic banks performance. In the Islamic banking literature, the work of Haron (1996a) was the first attempt to examine factors that contributed towards Islamic banks profitability. Most of the research used multiple regression analysis technique in measuring the relationship among the determining factors and profitability ratios. Extending the previous work in Islamic banks performance, this paper examines the strength of relationship between deposit variables and profitability of Islamic banks using univariate regression methodology. By studying the association between Islamic banksÃ… ¸ performance and the deposit variables, this paper contributes to the on-going discussion on the deposits and profitability relationship of Islamic banks. The paper is divided into seven sections. The literature review on determinants of Islamic bank performance is highlighted in Section 2. Section 3 examines the methodology used in analyzing the relationship between the deposits variables used in this study and the performance of Islamic banks. Section 4 presents the discussion and implication. The references are listed in section 5. The tables are listed in section 6 and figures in section 7. Literature Review The whole foundation of Islamic Finance is that the two sides of the equation (i.e. the fund-providers and the fund-users) work in agreement as partners, without depositors being assured of any return from those who use their money. In practice, Islamic banks draw approximately three-quarters of the capital from their depositors, and do not guarantee any precise level of return to these fund-providers. (Shubber and Alzafri,2008). Ghafoor (1995) states that all Islamic banks have three kinds of deposit accounts: current, savings and investment. Current or demand deposit accounts are almost the same as in all conventional banks. Deposit is assured. Savings deposit accounts function in different ways. In some banks, the depositors permit the banks to make use of their money but they attain a guarantee of being paid the complete amount back from the bank. Banks adopt a number of methods of inducing their customers to deposit with them, but profit is not promised. In others, savings accounts are treated as investment accounts but with less strict conditions as to withdrawals and minimum balance. Capital is not assured but the banks take care to invest capital from such accounts in fairly risk-free short-term projects. Therefore, lower profit rates are expected and that too only on a section of the average minimum balance on the ground that a high level of reserve funds need to be kept at all times to meet up withd rawal demands. Contrastingly, Investment deposits are accepted for a predetermined or indefinite period of time and the investors consent in advance to share the profit (or loss) in an agreed proportion with the bank. Capital is not assured. (Ghafoor, 1995). Some IFIs (Islamic Financial Institutions) classify deposits in terms of wadiah or amanah. Current accounts of IFIs are regarded as qard hasan or qard (alternatively, as wadiah/amanah). (Farooq, 2008). Qard al-Hasana is defined as deposits whose full repayment on demand is guaranteed by bank. (Ahmad, 1994). The deposits in the current account are regarded as if they are loans from the customers to the bank and therefore, bear no yield to the account holders.? (Al-Jarhi and Iqbal. 2001). Deposit accounts are neither a liability nor equity capital. They are a hybrid? source of capital, and must be acknowledged as such. Depositors are partners with the bank, but enjoy no ownership rights. (Shubber and Alzafri,2008). Sudin Haron (1996) mentions that the law allows the banks to accept two types of deposits, i.e., qard al-hasanah deposits and term investment deposits. The qard al-hasanah deposits includes current as well as savings accounts which vary in their operational rules. (Ahmad, 1994). If it is allowed that the borrower can pay extra money voluntarily, then treating deposits as qard-hasan allows the banks as the borrowers to pay extra money to the depositors (lenders). Unlike savings account services at conventional banks, where depositors are automatically rewarded upon appointment of their funds, returns to savings account holders are reliant on the Shariah (Islamic laws) principles which are practiced by Islamic banks when offering this service. When wadiah (trusteeship) or qard hassan (benevolent loan) are used, the returns are entirely at the discretion of the banks. (Sudin Haron, 1996). Nienhaus, (2004) argues that if the customers of Islamic banks desire a return on their funds, they should pay into investment accounts (also called participation accounts or PLS, profit and loss sharing accounts). Whereas, credit balances on these accounts are not considered deposits in the conventional sense. The returns on Islamic banks investment accounts are not fixed in advance; the customers participate by a certain proportion in the financial outcome of the utilization of their investment funds by the bank. These results could also result in a loss. In case of loss, the clients will have to bear a portion of the loss which would reduce the nominal value of the credit balances of their respective investment accounts. In such a situation, the clients cannot claim a full reimbursement of the money paid in. The full reimbursement, however, is constituent for a deposit in the strict sense. (Nienhaus, 2004). Rosly and Zaini, (2008) say that the public in general put their money in banks for either fulfilling transactional needs or for investment needs. To suffice the transactional objective, Islamic banks offer services such as wadiah yad dhamanah deposit, which facilitates safekeeping of their deposit money with guarantee services. In this product, depositors no longer deposit funds to receive a fixed income. Instead, they place their deposits for protection.`Wadiah yad dhamanah means safekeeping with guarantee. Wadiah yad dhamanah depositors permit the Islamic bank to invest their money in return for deposit safety that they got for free. Since the caretaker service is given without a fee, the Islamic bank holds no legal compulsion to pay depositors a predetermined return and may do so only on voluntary basis. In this way, the bank holds choice on profit distribution policy in the form of gift (hibah). The same is not correct for Islamic fixed deposits, frequently known as mudarabah in vestment deposits. In this partnership composition, no guarantee is given to capital protection and fixed income, as it runs under equity principle. It is a precarious product as the underlying contract is based on profitâ€Å"loss sharing system. Profits are shared only in case of performing investments, while capital may depreciate or even shrink if the investment ends in losses. (Rosly and Zaini, 2008). Haron and Azmi, (2004) discuss that similar to conventional banks, Islamic banks also rely on depositors money as a key source of fund. Bank Muamalat Malaysia Berhad for example, had total deposits amounting to 94 percent of total liabilities and shareholders equity at the end of December 2003. While in the case of Jordan Islamic Bank, Islamic Bank of Bangladesh, Bank Muamalat of Indonesia, and Bank Shariah Mandiri of Indonesia, the corresponding amounts were 94%, 86%, 76%, and 79%, respectively. These figures reveal the vast high total of the depositors money as a supply of finance for Islamic banks. Hence, it becomes indispensable for the management of Islamic banks to identify the factors that are most likely to convince customers decision making in depositing their capital with Islamic banks. (Haron and Azmi, 2004). With the exception of a study done by Metawa and Almossawi (1998) where religion was seen as a reason influencing customers choice to support Islamic banks in Bahrain, other studies have proven counter wise. The evidence from studies done in Sudan and Turkey, for example, revealed that religion was not the main motive for customers choosing Islamic banks (Erol and El-Bdour, 1989). Likewise, studies conducted in Malaysia and Singapore revealed both religion and profit as the explanation for people maintaining their association with Islamic banks (Haron et al., 1994; Gerrad and Cunningham, 1997). Since depositors are attracted by profits, it is vital for Islamic banks management to be aware of the fact that return rates on deposits persuade their customers decision to deposit. (Haron and Azmi, 2004). Relating to commercial banks deposit composition, Hester and Zoellner (1966) and Heggested (1977) found that time and savings deposits had a significant inverse correlation with profitability. Smirlocks (1985) findings demonstrated a significant positive relationship amid demand deposits and profits. In contrast, Fraser and Rose (1971) found that loan rate; time deposit rate and loan-to-deposit ratio had no outcome on profitability. Haron (1996a) found evidence to suggest that current, savings and investment accounts of Islamic banks are positively related to profitability. Fraser et al (1974) considered operating costs, deposit and loan structures as factors within the control of management and found that the factor which had the biggest control on bank performance was bank cost followed by banks deposit and loan composition. Heggested (1977) proved that banks heavily devoted to time and savings deposits earned considerably lower returns than banks which have higher reliance on demand deposits. Smirlock (1985) confirmed that demand deposits were a cheaper source of funds and had a positive impact on bank profits. In the literature, the majority of studies found that savings and time deposits have a negative relationship with profitability, while a positive relationship has been found for current account deposits. Haron (2004) found that nearly all deposit structure variables had no significant relationship with the profitability ratios. Deposits in current account, was the only variable which had a significant relationship with Banks portion of income as a percentage of total assets and Net profit before tax as a percentage of total assets. Each 1% increase in the current account holdings increased the banks income by 0.034% and profit before tax by 0.036%. This end result was in line with the findings reported by Smirlock (1985). Since a current account service is considered a cost-free facility, it is anticipated that the more funds deposited into this account, the more Islamic banks would stand to profit. Interestingly, no significant relationship was found between current account deposits and Total income as a percentage of total assets, which implied that an increase in current accounts does not generate more proceeds to the bank as a whole but only functions as a cost saving measure. That is, no returns are paid to these depositors. In the case of savings and investment accounts, even though their relationships with all profitability ratios were at an insignificant level, the signs of their regression coefficients warranted further clarification. No contradiction with the findings of conventional banking literature with regard to savings accounts was apparent. A negative relationship was found between Savings account deposits and the profitability measures. This result suggests that any increase in savings accounts will reduce profits and it corresponds to the findings in the current banking literature (see for example Hester and Zoellner, 1966; and Heggested, 1977). The results on Investment account deposits in Harons (2004) study are not similar to those findings reported in earlier researches. Hester and Zoellner (1966) and Heggested (1977), for example, found that fixed deposit facilities had an inverse relationship with profitability. Since some of the characteristics of investment deposits at Islamic banks are similar to the fixed deposit facilities of conventional banks, it is expected that more funds deposited into these accounts would result in less profit to the bank. In contrast, Smirlock (1985) believed that an increasing amount in fixed deposits would have a positive relationship with a banks profitability. Harons (2004) study found that Investment account deposits had a positive relationship with all profitability measures and thus, confirmed Smirlocks hypothesis. Haron and Azmi (2004) attempted to investigate the strength of influence between both internal and external variables and profitability of Islamic banks in selected countries using timeseries techniques of cointegration and error-correction mechanism. They found a significant long-run relationship between profitability measures of Islamic banks and determining variables such as liquidity, deposit items, assets structure, inflation and money supply. They also found that Investment account deposits was the only variable which had a significant relationship with all three profitability ratios. For Current account deposits, a positive relationship was found with Banks portion of income as a percentage of total assets. The result indicated that a 1% increase in current account holdings increased the banks portion of income by 0.064%. Given that current account facility is a cost-free service, the more funds deposited into this account, the higher profits will be made available to Islamic banks. Interestingly, current account deposits had no significant relationship with Total income as a percentage of total assets implying that an increase in current accounts does not generate more income to the bank, but only functions as a cost saving measure. On other words, Islamic banks do not pay any rewards to their depositors. These results were in line with the findings of Haron (1996a, 2004). Savings deposits variable was found to have a significant positive relationship with Total income as a percentage of total assets. For every 1% rise in savings account, total income increased by 0.26%. This was in line with normal banking practices whereby Islamic bank could use the funds deposited in this account for productive purposes and thus, generating additional revenue for the bank. Increases in deposits size has a positive impact on Earnings per share (EPS), as a portion of depositors profits is minused as a fee for the benefit of the bank and its shareholders. (Shubber and Alzafri, 2008). Returns on Islamic deposits are though flexible in nature since returns are based on performance rather than contracted upfront as evident in all interest bearing deposits. Although the mudarabah rates (investment deposit rates) are quoted using the rates given in the previous months, they are not fixed beforehand and serve as an indicative rate of return on Mudarabah deposits (ROMD). The Mudarabah (investment deposits) contract works along profitâ€Å"loss sharing principles while fixed deposits of conventional banks are based on the contract of debt. As an equity product, a Mudarabah deposit offers no principal protection and legal claims against any form of returns. To make up for the risk exposure of the product, Mudarabah depositors are expected to be given higher retur ns relative to that of commercial banks fixed depositors who avoided risk. (Rosly and Zaini, 2008). Haron and Shanmugam (1995) in their study try to link the profit rates to Islamic banks deposits. Using Pearsons Correlation and First Order Autoregressive model, they found strong negative relationship between the two variables. Likewise, their finding showed a positive linear relationship between conventional and Islamic bank deposits. Haron and Ahmed (2000) argue that people who placed their deposits at saving and investment account facilities were guided by the profit motive. The utility maximization theory amongst the Muslim customers was further confirmed by the negative relationship between the rate of interest in conventional banks and the sum deposited in interest-free deposit facilities. Muslims should be guided by Islamic doctrines when making their economic decisions. Therefore, role of educating people regarding Islamic banking system should be played globally. It is indeed a challenging task. (Haron and Ahmed, 2000). Shubber and Alzafri, (2008) say that EPS (Earnings per share) improves as the level of deposits increases, as depositors were viewed as sharers in the profit and loss, rather than being entitled to a fixed interest rate. This supports that increasing deposits have a positive impact on EPS (Earnings per share). Increasing deposits, therefore, do not direct any increment in the cost of equity. In fact, equity holders benefited from larger deposits, as owners of the latter pay out management fees, which is deducted from the depositors share of the profits. Also, the market value of Islamic banks is independent of WACC. (Shubber and Alzafri,2008). Haron and Azmi (2004a) demonstrated that with the exception of fixed and investment deposits, any increase in rates of interest, deposits at conventional system will increase and deposits at Islamic system will decrease, and vice-versa. As for the fixed and investment deposits, ambiguous results were found. One possible explanation for this is that rates of profit for deposits at Islamic system are known at the end of the deposit period and not at the beginning as opposed to the conventional system. Any upward changes in interest rate of conventional system will have an adverse impact to the deposit levels in the Islamic system. Therefore, rates of profit of Islamic system must at any time be similar to those of the conventional system. Finally, religious dimension can be considered as an important element to attract more people to deposit their funds in the Islamic system. This could also be the reason why more and more conventional banks are starting to offer Islamic banking facili ties to their customers not only in Malaysia but also to other parts of the world. (Haron and Azmi, 2004a). Hasan and Bashir (2003) argue that the rising contest and continuous innovation to provide financial services, all contribute to a increasing interest in a detailed evaluation of Islamic banks. Depositors are interested in evaluating the performance of their banks since they are not given fixed returns and the nominal values of their deposits are not assured. In trying to make best use of the value of shareholders investment, Islamic banks are exposed to risks. Hence, analyzing the Islamic banks performance is important from economic and public policy perspectives. (Hasan and Bashir, 2003). Methodology This study uses univariate regression analysis to examine the relationship between deposits and profitability of Islamic banking industry in Pakistan. Univariate regression is a method of regression analysis that uses one explanatory variable to predict values of a single dependent variable. SPSS software is applied to obtain the univariate regression. In this study, three independent variables titled Fixed deposits, Savings Deposits and Current account deposits have been used. The dependent variable of profitability is measured by ROE which is the ratio of a banks net after-tax income divided by its total equity capital. The return on equity (ROE) is considered to be one of the profitability performance ratios (Tarawneh, 2006). It indicates how effectively the management of the bank is able to turn shareholders funds (i.e. equity) into net profit. ROE (Return on Equity) has been tested separately for the three independent deposit variables to avoid the issue of multicollinearity sin ce all the deposit variables are highly correlated to each other. This paper attempts to test three hypotheses. According to Becker (1995), hypothesis testing is the process of judging which of two contradictory statements is correct. Hypothesis 1: Investment Deposits increase the profitability of Islamic banks. Hypothesis 2: Saving Deposits increase the profitability of Islamic banks. Hypothesis 3: Current Account Deposits increase the profitability of Islamic banks. The data for this study is time series data taken from the quarterly editions of the Islamic banking bulletin? published by the State Bank of Pakistan. These bulletins publish the consolidated financial statement variables representing the entire Islamic banking industry of Pakistan including all the full fledge Islamic banks (Al Baraka Islamic bank, Bank Islami Pakistan limited, Dawood Islamic bank Limited, Dubai Islamic bank limited, Emirates Global Islamic bank Ltd and Meezan Bank Ltd.) as well as the Islamic branches of conventional banks (Askari Bank Limited, Bank Al Falah Ltd., Bank Al Habib, Faysal Bank, Habib Metropolitan bank, MCB Bank Ltd, National bank of Pakistan, Soneri Bank Ltd, Standard Chartered Bank, The Bank of Khyber, Royal bank of Scotland, United Bank Ltd). The sample period for this study is limited from 2007 to 2009 as most of the Islamic banks started operations from 2007 in Pakistan. Hence, the consolidated data of the eleven consecutive quarters has been use d in this study. The general equations of the three models are: Profitability = b0 + b1(ID)(1) Profitability = b0 + b1(SD)(2) Profitability = b0 + b1(CD)(3) Where, b0 = intercept (constant) Dependent variable: Profitability = ROE (Return on Equity) Independent variables: ID = Investment Deposits SD = Savings Deposits CD = Current Account Deposits Results The results of the regression analysis for model.1, 2 and 3 are shown in Tables 1, 2 and 3 respectively. All the three models were significant at the 5% level of significance. The value of the adjusted coefficient of determination (adjusted R2) for ROE in model.1 is 0.4 which demonstrates that 40% of the variability in total is explained by its linear association with Fixed deposits variable. As for model 2 and 3, the corresponding values of adjusted R2 are 0.399 and 0.377 respectively. A relatively small value of adjusted R2 does not necessarily mean that the model is in appropriate to measure the relationship between independent and dependent variables. (Haron, 2004). The value of adjusted R2 is usually influenced by a number of predictive variables relative to the sample size and it becomes smaller as we have fewer observations per predictor variable (Hair et al., 1995). To provide a rationale for the variance in R2 and adjusted R2 values, the Dublin-Walter test was conducted. The Dublin-Walter statistics values for all the three values were less than two which proves that the variance was due to negative autocorrelation in the sample observations. Also, the adequacy of a model for predicting is validated by the F-test. (Haron, 2004). As presented in Table 1, 2 and 3, all F-ratio values are statistically significant at 5% significance level for all profitability models. Hence, these results confirmed that the models applied were useful for measuring the relationship between deposits variable items and the profitability variable. Discussion The results supported all the three hypotheses that Investment, Savings and Current account deposits increase the profitability of Islamic banks. This result is in line with Haron (1996a, 2004) who founded evidence to suggest that all three sources of funds (current, savings and investment accounts) for Islamic banks are positively related to profitability. Hypothesis 1 of this study suggested that investment deposits increase the profitability of Islamic banks. The results show that the value of the adjusted coefficient of determination (adjusted R2) for ROE in model.1 is 0.4 which demonstrates that 40% of the variability in total is explained by its linear association with investment deposits variable. Hence, results support Hypothesis 1. Similarly, hypothesis 2 stated that savings deposits increase the profitability of Islamic banks. The results show that the value of the adjusted R2 for ROE in model.2 is 0.399 at 5% significance which shows that 39.9% of the variability in total is explained by its linear association with savings deposit variable. Hence, results also support Hypothesis 2. Finally, hypothesis 3 proposed that savings deposits increase the profitability of Islamic banks. The results show that the value of the adjusted R2 for ROE in model.3 is 0.377 which shows that 37.7% of the variability in total is explained by its linear association with savings deposit variable at 5% level of significance. Hence, results support Hypothesis 3 also. All these results were significant at a 5% level of significance. Referring to previous literature, the results are mixed. In the literature, most studies found that savings and investment deposits have an inverse relationship with profitability, while a positive relationship has been found for current account deposits. In this study, the current account deposit variable had significant positive relationship with profitability. This result is in line with the findings reported by Smirlock (1985), Haron (1996a, 2004) and Haron Azmi (2004). Since a current account service is considered a cost-free facility, it is expected that the more funds deposited into this account (current), the more Islamic banks will stand to profit. In the case of savings deposits, a positive relationship was found between these deposits and profitability. This result suggests that any increase in savings accounts will increase profits and this is in line with Haron (1996a) and Haron Azmi (2004) as Islamic banks can use these savings funds deposited in this account for productive purposes and therefore, generating additional revenue for the Islamic banks. The results on investment deposits in this study are not similar to most of the findings reported in commercial banking literature. For example, Hester and Zoellner (1966) and Heggested (1977) found that fixed deposit facilities had an inverse relationship with profitability. In contrast, Smirlock (1985), Haron (1996a, 2004), Haron and Azmi (2004) believed that an increasing amount in fixed deposits would have a positive relationship with a banks profitability. This study found that investment deposits had a positive relationship with all profitability measures and thus, confirmed Smirlocks, Harons and Azmis hypothesis. In light of the above findings, Islamic banking provides a better and ethical alternative that is not only Riba-free according to the rules of Shariah but also profitable to depositors and investors since all the deposit accounts are positively correlated to profitability. Since, Islamic banking provides three different interest-free deposit facilities to its depositors and investors to facilitate them according to their financial needs, people should invest in these deposit accounts in order to patronize the Islamic banking industry and to receive good returns in the form of hiba from these Islamic banks. In addition, Ghazali (2008) suggests that Islamic banking is indeed relevant to the current economic crisis. The global financial meltdown stemming from the US actually poses an opportunity for the Islamic banking system to demonstrate its distinctiveness. The financial meltdown revealed the desperate need for a system like Islamic finance, based on the principle of profit-sharing where both parties are subjected to probable losses and returns. It is a fair and just system. This is contrasting to the conventional system, where Islamic banks do not acquire or trade debt; rather they manage substantial assets which are tied to real economic activities.. This is really an opportunity for the Islamic financial community to reveal to the global market that the Islamic financial system is actually a robust and feasible alternative to the conventional interest-based system. Hence, people should support the Islamic banking industry worldwide since deposits are positively related to the profitability of Islamic banks. Hence, increased deposits would result in higher profitability of Islamic banks which in return would provide higher returns to its depositors. This would finally lead to implement a justified and ethical economic system which encourages a fair distribution of wealth and resources throughout the society. This study can be extended to include more time series and cross-sectional data of Islamic banks of other countries. The study may also be extended to cover other determinants of Islamic banking profitability.