The Minds of Serial Killers and how They Work - 1125 Words

A serial killer is to be known as a killer that will pause for a long period of time before killed more peope. After a serial killer killed one person, they would wait months or years before they killed another and pause after that and they did that till they were caught. But, a man or woman doesn’t just decide one day that they will kill people, it all starts when they were a child. What makes a person want to kill and why can’t we get into a serial killers mind? It may be the way they were raised. It also might be that they were beaten as a child, or their parents abused them, or maybe they were being bullied because they were different from the others. Most of these caused one thing prior to them wanting to kill, and that is because of†¦show more content†¦It’s pretty clear that mental illness is not enough to cause violence because most people who are mentally ill are not violent. It’s also evident that neurological damage is not enough to cau se violence because the vast majority of people who are neurologically impaired are not violent. And it’s clear that the experience of horrendous child abuse is not enough to cause violence because most people who are abused that way are not violent. Yet, most violent people have these three factors, or two of the three. That’s an indisputable fact. The theory that explains it is that abuse sets up an impulse toward violence that a good brain can control. If you get the abuse and the neurological damage and mental illness, then violent impulses are not easy to check. That’s why they are expressed under stress or at times of jealousy or anger. Hansen - It seems mysterious that people suddenly become violent killers after years of a seemingly normal life. For some of them, it takes 30 years to become violent, while others are killers at age 12. Pincus - It’s during periods of mania, when a killer feels released from the constraints of society, and during periods of depression, when he’s feeling victimized again, that he’s likely to be a perpetrator. A lot of serial killers do all of what they do within a little space of time; then there’s a period of calm and they do it again. Some people believe that the killers are psychopaths and/orShow MoreRelatedTwo Articles on the Motives and Mind of a Serial Killer1470 Words   |  6 Pages The mind of a serial killer can be very interesting in being able to find out what makes them want to do what they do. Knowing if someone was abused as a child and if this makes them more likely to become a serial killer or not become a serial killer is something I was very curious to learn about. Something that happens in a person’s childhood can affect the way they act when they become adults. I found two sources talking about childhood abuse and serial killers. The first source was an internetRead MoreSerial Killers Speech1533 Words   |  7 Pagesaudience about Serial Killers. Central Idea: To show my audience why serial killers kill and what motivates them. INTRODUCTION Tell them what you are going to tell them. I. Attention Getter: What would you do as a young college girl at a grocery store walking to your car and you see this handsome middle aged man with a cast on struggling to get his groceries and he ask you for your help. Would you help him? Ted bundy was one of the most famous and handsome serial killers of all time. Read MoreThe Mind of Monsters1390 Words   |  6 PagesMorgan is a fictional serial killer from Showtime’s series â€Å"Dexter†, but the writers and actors have portrayed a real life serial killer. Manuel Prado is the real Dexter Morgan. Prado was a Miami cop who started with smaller crime and worked his way up to becoming a serial killer. †Prosecutor David Waksman told the Miami Herald: He was very cold. He was doing robberies and went home and slept like a baby. He was proud of what he did.† (International, 2012) Real life serial killers do not have any empathyRead MoreAcceleration by Graham Mcnamee Essay1333 Words   |  6 Pagesboasts of arson fires, and the planning for the serial killings of three women. Duncan decides to make amends for his failure last summer by tracking down the owner of the journal by using clues left hidden in the diary. After talking with his friend Vinny, Duncan decides to turn the journal over to the police, but they do not take him seriously, so he decides to get help from Vinny, do some research at the local library, and find out where the killer works and lives so they can prove to the police theRead More The Psychology of Serial Killers Essay1687 Words   |  7 PagesThe Psychology of Serial Killers Many things today confuse, yet enthrall the masses. War, murder, medical science, incredible rescues, all things you would see on The History Channel. There is another topic that is also made into documentaries however, serial killers. Dark twisted people that commit multiple murders are of interest to the population, but what caused them to be this way. What horrible tragic set of events could twist a man to murder one or many people. Could Schizophrenia, psychopathyRead MoreThe Murder Of Serial Killers1703 Words   |  7 PagesA grieving mother drapes herself over the casket of her deceased son. The 14 year old had fallen victim to one of the most infamous serial killers in history, Jeffrey Dahmer. Dahmer killed a total of 17 known victims, all between the ages of 14 and 33. In his most recent murders, he often resorted to necrophilia, cannibalism, and permanent preservation of body parts (â€Å"Jeffrey Dahmer Biography†). The mother looks at what is left of her son’ s face, the face that once smiled to her every morning beforeRead MoreSerial Killers1314 Words   |  6 Pages like serial killers, and what drives them to do what they do. Many scientists are still researching whether or not if serial killers are driven by the way they were raised or if it is a part of their genes. This literature review will analyze what people think about the nature versus nurture debate. It will talk about the nature side and the nurture side of the debate. What is a serial killer? Eric Hickey (2012) in â€Å"Serial Killers: Defining Serial Murder† defines what a serial killer is exactlyRead MoreAcceleration by Graham McNamee Essay1323 Words   |  6 Pagesboasts of arson fires, and the planning for the serial killings of three women. Duncan decides to make amends for his failure last summer by tracking down the owner of the journal by using clues left hidden in the diary. After talking with his friend Vinny, Duncan decides to turn the journal over to the police, but they do not take him seriously, so he decides to get help from Vinny, do some research at the local library, and find out where the killer works and lives so they can prove to the police theRead MoreSerial Killer : Serial Killers909 Words   |  4 PagesAccording to an FBI study, â€Å"there have been approximately 400 serial killers in the United States in the past century, with anywhere from 2,526 to 3,860 victims (Hickey). No one really understands serial killers. It is actually quite difficult to comprehend how the mind of a serial killer works. Some believe that a serial killer feels strongly attracted by a specific physical characteristic in the victim. It could be his or her appearance: facial features, clothes, or even personality. On the otherRead MoreEssay The Making of a Serial Killer, An Annotated Bibliography1410 Words   |  6 PagesAnnotated Bibliography: Brogaard, Berit. The Making of a Serial Killer. Psychology Today. Sussex Directories, Inc., 7 Dec. 2012. Web. 03 May 2014. Berit Brogaard, D.M.Sci., Ph.D., is a Professor of Philosophy and the Director of the Brogaard Lab for Multisensory Research at the University of Miami. She earned a medical degree in neuroscience and a doctorate in philosophy. This article explained the traits of a psychopath, such as their callous, manipulative, and cunning behavior, along with

Autism And How Can We Help An Autistic Person Essay

Have you heard people talking about Autism? Nowadays, Autism seems to be more and more common, it is essential to educate ourselves and to put aside all the prejudices that hurt people with autism and their families in the process of adapting to this syndrome. For this, it is important to know more about: What Autism is? What are the characteristics of an autistic individual? What are the causes? And how can we help an autistic person? According to the NAA (2016), Autism is a bio-neurological developmental disability that generally appears before the age of 3. â€Å"From birth to 5 years, children reach milestones in how they play, learn, speak and act. A delay in any of these areas could be a sign of an ASD or other developmental disabilities† (CDC 2014). It is a syndrome characterized by the incapacity of maintain a conversation, contact with other people, and the necessity of having steady surroundings. It is also one of the most common conditions in the group of developmental disorders. Autism is not a sickness; it’s a syndrome, a set of symptoms that characterize a degenerative disorder of bio-psychosocial development, as well as a disorder of the central nervous system. It is a severe and chronic developmental disability and it affects three areas in the neurobiological development, which are: social interaction, communication, and the area of imagination and play. There are three types of autism, Autistic disorder (also called classic autism), Asperger syndrome, andShow MoreRelatedAutism : Social Spectrum, Communication, And Difficulty853 Words   |  4 PagesDiscussion In the interviews gathered, the researcher was trying to gain knowledge of what people think autism is and how they feel towards those who have autism. The most important finding in this was study was most people had a different experience with those with autism and most did not know what autism specifically is. This is the most important finding because the interviews helped gain a different perspective from what the literature said. Interviews were very interesting for the researcherRead MoreAutism Spectrum Disorder ( Asd )1535 Words   |  7 PagesHow Autism Influences the Interactions with Others There is a little boy that gets up every morning and goes to school. He goes home to his parents after school each day. He eats, sleeps, and plays just like any other child. There is one difference. He sees the world in a unique way than most other children not affected by Autism Spectrum Disorder. The boy’s life and actions are a bit different and can be challenging for him. He needs understanding parents, family members, and teachers. Autism SpectrumRead MoreOutline Of A Social Awareness1691 Words   |  7 PagesSocial awareness Essay Sights that will help with grammer and any type of errors : https://www.paperrater.com/ Topic: Autism Introduction Attention getter: Autism affects every 1 in 68 children; It is one of the fastest growing developmental disorders in the u.s (Facts about Autism. Autism Speaks. N.p., n.d. Web. 11 Mar. 2016. Minor details about the issue Autism FAQ - History. Autism FAQ - History. N.p., n.d. Web. 11 Mar. 2016. . history Thesis: BodyX3 Topic sentence: TheRead MoreAn Anthropologist On Mars By Oliver Sacks1637 Words   |  7 PagesAutism is a biological disorder that roots in the human beings brain and slowly damages it in specific ways. The effects of the autism mostly start to show in the early ages of the children. Many parents disregard the change in the behavior of their children and thus ignore the possibility that their children may have some of the illness. The changes in the behavior of the child from the normal growing children such as being too quiet around others or does not speak to you and sometimes he/she evenRead More Autism Essay1068 Words   |  5 Pages AUTISM Autism is a life-long developmental disability that usually appears in the first three years of a child’s life. It interferes with normal development of the brain, preventing individuals with this rare disorder from understanding what they hear, sense, and observe. Although this severe disability is considered a child’s disability, autism is found in adults, interfering with normal social and emotional development. Anyone can acquire autism; it is put in place at birth. BoysRead MoreNVQ 3 Essay1585 Words   |  7 Pagesï » ¿Understand how to support individuals with autistic spectrum conditions. Understand the main characteristics of autistic spectrum conditions. 1.1 It is important to recognise that each person on the autistic spectrum has their own individual abilities, needs, strengths, gifts and interests because no two individuals are the same. People on the autistic spectrum have their own set of unique characteristics and vary from one to another in terms of their abilities. Some clients may have similarRead MoreAutism Spectrum Disorder And Autism1389 Words   |  6 Pages Autism Spectrum Disorder Autism is a form of â€Å"ASD,† Autism Spectrum disorder and is experienced all around the world. Autism is a developmental disorder that consists of many neurodevelopmental disorders of the brain. People with autistic disorder think and act in different ways than most people. There are many different forms of autism spectrum disorder that include the pervasive development disorder, Asperger syndrome, and autistic disorder. These disorders are called spectrum disorders becauseRead MoreThe Effects Of Autism On Children s Children1076 Words   |  5 PagesEgan English 1010 Dr. Dugger 18 February 2016 Autistic Children Life can be troubling, confusing, aggravating, although it can also be delightful, happy, and relaxing. Knowing someone with autism can lead to more confusion, but a child that has autism can be even worse. Commonly people aren’t aware that their child is autistic or that someone around them is autistic. Classifying children as autistic is done correctly and incorrectly every day, because autism has just become recognized and isn’t commonlyRead MoreAn Anthropologist On Mars By Oliver Sacks1666 Words   |  7 Pageshave witnessed many logical and scientific discoveries from the past until now. There are far more scientific researches that have not discovered and delivered to the researchers yet. Autism is a biological disorder that roots in the human beings brain and slowly damages it in specific ways. The effects of the autism mostly start to show in the early ages of the children. Many parents disregard the change in the behavior of their children and thus ignore th e possibility that their children may haveRead MoreAutism Spectrum Disorder ( Asd )1722 Words   |  7 Pagesin every sixty-eight births are diagnosed with the Autism spectrum disorder in other words (ASD), which is about one percent of the world’s population. And that more than three point five million people in America live with a person who has the Autism spectrum disorder. We all know that Autism is a spectrum disorder in which an abnormality is developed in the brain. It is a long life condition that has no cure for itself. People who have Autism face many difficulties in their communication and their

The Traditional Economic Theory of The Firm

Question: Discuss about The Traditional Economic Theory of The Firm. Answer: Introduction: According to the Traditional economic theory, the objective the raison dentre of the firm is to maximize profits. The statement implies that a firm enters into the market, whether there is free entry or not, to maximize its own profit. Profit maximization is the process, long run or short run determining the optimum level of output and price returning the highest possible profit to the firm. Along with many approaches in traditional economic theory, the total revenue and total cost approach that relies on the truth that profit is equal to revenue minus cost (Varian 2014). In addition, it focuses on the difference along with the marginal revenue-marginal cost aspect because total profit is reached at the maximum point when the marginal revenue equals the marginal cost. Different market structures: Mainly there are four kinds of market structure prevails in an economy, namely- (i) Perfect Competition, (ii) Pure monopoly, (iii) Monopolistic competition and (iv) Oligopoly. Firstly, in the perfectly competitive market, where the firms exhibit specific criterion such as, selling identical products, price taking specification, having small market share, having complete information about the goods and services that are sold with free entry and exit (Kirzner 2015). In perfect competition, profit is maximized when the price equals marginal revenue of the firm (Fussand McFadden2014). In the monopoly, the profit maximization condition is when the price and marginal revenue equals the marginal cost i.e. MR=MC. The diagram below shows the price Pe is the price of the firm receives for every unit sold which is Average Revenue of the market and Ce being the Average cost of each unit. The diagram shows supernormal profit in monopoly, which is the sustainable long run profit for the market structure. Figure 1: monopoly long run profit For monopolistic competition, the companys demand curve should end up being tangent to the average total cost curve to yield zero profit. This is the long run condition for monopolistically competitive market. Figure 2: Monopolistic competition long run profit In the oligopoly, the market structure is different. The kinked demand curve yielding long run profit is given the in diagram below. Figure 3: oligopoly long run profit Uncertainty: The aspect of uncertainty is discussed with respect to the long-run profit maximization of a firm when it commits production before the price is set. The increase in demand uncertainty does not affect the equilibrium number or size of the firms if the firm is risk neutral. If the firm is risk averse, there will be a reduction in the equilibrium number of firms with an ambiguous effect on the sizes. In the equilibrium, if the firm is risk neutral, it operates at the capacity. Nevertheless, if the firm is risk averse, there will be excess capacity prevailing in the economy (Fudenbergand Tirole2013). The problem of uncertainty affects the long run profits of the firm if it is risk averse. In long term, the firm is affected by the price as the price level is always unpredictable. So whatever be the market structure, the risk averse firm will avoid investing in any kind of productions which will lead to a proper loss for the firm. The situation is quite different in case of the risk lovin g firms as they invest whatever be the future predicted price level. "Principal-Agent" Problem: The principal agent problem is the situation when one party or agent agrees for working in favor of another party, who is the principal, by responding to some incentives. As people directly respond to incentives, the situation yields huge costs for the agents, causing a moral hazard (Okuguchiand Szidarovszky2012). The principal agent problem includes everything from incentives regarding financial forms for avoidance of asymmetric information. The Principal-agent problem, also known as agency dilemma, happens in a situation while a person who is the agent is able making decisions on behalf of any other person or entity who is the principal. The dilemma persists, as the agent at times, gets motivated acting in his best level rather than that of the principal. This relationship of principal-agent is a proper useful tool to analyze the conditions regarding economics and political science. A very common example can be drawn as the relationship between corporate management (agent) and the shareholders (principal). The problem may arise in a greater manner when the two parties face information asymmetry. This is a situation when the principal is not able to ensure directly that the agents activity is at the principals highest level of interest. Here the problems of conflict of interest and Moral Haza rd arise. The problem of moral hazard is the situation when one agent gets involved in any uncertain activity knowing about its protection against risk and the other party incurs the cost. In addition, the principal can be very much concerned about the exploitation possibility by the agent as he decides not to enter into the transaction of the both involved parties. This deviation from the interest of principal by the agent is named as agency costs (Sng2014). Alternative theories: Sales Maximization Theory (William Baumol): The theory by Professor William Baumol on the Theory of Oligopoly incorporated a managerial theory of the company based on the maximization of the sales. The theory exhibits the following assumptions: The firm has a single period horizon, aiming at maximizing the sales revenue in long run subjected to the profit. The firm's minimum level of profit is set competitively on the current value of market shares The oligopolistic firm has a U-shaped cost curve and downward sloping demand curve with conventional total cost and total revenue curve. The Baumols findings regarding the oligopoly firms reveal that they consider the sales maximization objectives. According to the economist, with the ownership separation and modem corporation control, managers seeking prestige and higher salaries to try expanding sales of the company even at the profit expenses (Baumoland Blinder2015). The firm needs to exhibit minimum profits for financing the future expenditures. Minimum profits serve as the constraint on maximizing revenue. According to Baumol, revenue will be maximized only at an output when the demand is unit elastic. Therefore it differs from the traditional economic theory which talks about the invisible hand in market force and automation on equilibrating the optimums. Management Utility Maximization Theory (O.E. Williamson): According to Williamson's utility maximization theory againost the profit maximization, also known as "managerial discretion theory," the managers and shareholders are two separate groups. The shareholders want to maximize the return on the investment as well as maximizing the profits. On the other hand, the managers are interested not only in their own fees but also in their staffs size and the expenses on them. Thus, the theory of Williamson relates to the maximization of the utility of the manager that is the function of staff expenditures and fees and discretionary funds (Sng2014). The assumptions of the model focus on: (i) imperfect competition in the markets, (ii) Divorce of management and ownership, (iii) minimum level of profit constraint existing for the company being able to pay dividends to the shareholders. The model differs from the traditional theory by the means of imperfectly competitive structure with the profit constraints. Satisfying Behavior (Simons): According to Simon's theory, he compared the organizational behavior with the individual behavior. He proposed that as an individual, a firm aspires leveling to keep up with the needs and driving to achieve its goals. The firm has an aspiration for achieving a certain level of profits. The level of aspiration is based on the different goals and aims regarding production, prices, sales, profits, etc. (Varian2014). In the given situation, the firm faces three alternative situations as follows: Firstly, the real achievement is lesser than the level of aspiration, when there is a big lag due to possible fluctuations in economic activities of the firm. Secondly, the achievement is greater than the level of achievement when the firm is quite satisfied with the performance. Thirdly, the achievement equates the level of aspiration when the outcome is also satisfactory. The theory differs from the traditional one in terms of targeting the profit level that the firm has an aspiration to reaching. The major objective is different and not reconcilable. Conclusion: The article critically analyzes the statement that is mentioned- The traditional theory of the firm has long outlived its usefulness in explaining the raison d'entre of business organizations." The theories discussed the important factors affecting the firm's profit maximization conditions. The Simon's model is superior to the model by Williamson as it talks about individualism. On the other hand, in Williamsons model, the managers are concerned with the utility maximization aspect. The Baumols model gives ambiguous ideas into this critical evaluation. References: Baumol, W. and Blinder, A., 2015.Microeconomics: Principles and Policy. Cengage Learning. Fudenberg, D. and Tirole, J., 2013.Dynamic models of oligopoly.Taylor Francis. Fuss, M. and McFadden, D. eds., 2014.Production Economics: A Dual Approach to Theory and Applications: Applications of the Theory of Production(Vol. 2). Elsevier. Kirzner, I.M., 2015.Competition and entrepreneurship.University of Chicago press. McChesney, F.S., Reksulak, M. and Shughart, W.F., 2015.Competition Policy in Public Choice Perspective(Vol. 1, pp. 147-171).The Oxford Handbook of International Antitrust Economics. Okuguchi, K. and Szidarovszky, F., 2012.The theory of oligopoly with multi-product firms.Springer Science Business Media. Sng, T.H., 2014. Size and dynastic decline: The principal-agent problem in late imperial China, 17001850.Explorations in Economic History,54, pp.107-127. Varian, H.R., 2014.Intermediate Microeconomics: A Modern Approach: Ninth International Student Edition. WW Norton Company.

Monetary Policies and Banking Regulations in Cameroon free essay sample

Monetary policy is the program of action undertaken by monetary authorities to control and regulate the supply of money and the flow of credit to the public with a view to achieving pre-determined macroeconomic objectives. The objectives of monetary policy are the same as those of macroeconomic policy, which include: Maintain a high growth rate High rate of employment Stabilization of prices, output and employment Ensure equity in income distribution Balance of payments equilibrium Stability of foreign exchange Monetary instruments are generally classified under two categories: Quantitative measures, and Qualitative or selective credit controls Quantitative measures of monetary control are also called ‘traditional’ measures and are the following: Open market operations Discount rate or bank rate policy Cash reserve ratio Qualitative or selective credit controls include Credit rationing/special deposits Change in lending margins (effecting changes in required mortgage property-land, building, shares etc. ) Moral suasion Direct controls The transmission mechanism describes the channels through which changes in money supply impact the real variables of the economy. We will write a custom essay sample on Monetary Policies and Banking Regulations in Cameroon or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The stages and ways in which changes in the money supply affect the economy are subject to debate among economists (mostly the Keynesians and the monetarists). The Keynesian transmission mechanism According to Keynes, an increase in the supply of money leads to an increase in the cash balances that people hold. Economic agents use the excess cash balances to buy financial assets (bonds). An increase in the demand for bonds leads to an increase in the prices of bonds and a fall in the interest rate. The fall in interest rates leads to an increase in investment by firms. The lower cost of borrowing may equally encourage household consumption spending. The increased investment and consumption increase aggregate demand which in turn increases output with a multiplier effect. Thus according to Keynes, the monetary policy only affects AD indirectly through changes in the interest rate. The Monetarist transmission mechanism The monetarists believe that an increase in money supply has both a direct and indirect effects. To the monetarists an increase in money supply will mean that economic agents including both firms and households will hold excess cash balances which they will attempt to spend. Some of this spending will be on goods and services such as machinery, land, cars, healthcare, tourism, etc. This represents the direct effect on spending of the increase in money supply and is called the direct transmission mechanism. The increase in money supply will also tend to depress interest rates. This will stimulate investment and consumption further. This is the indirect effect on spending, and is also referred to as the indirect transmission mechanism. Banking regulations are a form of government regulation which subject banks to certain requirements, restrictions and guidelines. This regulatory structure creates transparency between banking institutions and the individuals and corporations with whom they conduct business, among other things. Bank Supervision * needed to reduce moral hazards * ensures that banks take only sensible risks * controls money supply Reserve Requirements * helps control the money supply This paper examines the monetary policy and banking regulations in Cameroon. Monetary policies, banking regulations and legislation in Cameroon have been designed to assure the stability of the Banking system and this involves a diverse range of policies, rules, and regulations. Introduction The diagram below gives an overview of the Banking System in Cameroon. Overview of the Banking Sector in Cameroon The Banking Sector in Cameroon is can be divided into two levels: The Supervisory/Regulatory Level and the Operational level. The main supervisory/regulatory institutions which operate in Cameroon are BEAC, MINFI, COBAC, NCC, APECCAM and ANEMCAM. They are in charge of setting and enforcing the monetary policies of the CEMAC region and the banking regulations in the country. The operational level is made up of depository and non-depository institutions. These carry out the banking functions in the country. Depository institutions include Commercial banks, Micro Financial Institutions (MFIs) and informal savings and loan systems known in the local parlance as â€Å"njangis’ and â€Å"tontines’. These take the place of banks for many tribal members, with repayment enforced by social pressure. While non-depository institutions include Special Funds like FEICOM, SNI, Credit Foncier etc. The Economic and Monetary Community of Central Africa (or CEMAC from its French acronym: Communaute Economique et Monetaire de lAfrique Centrale), is an organization of states of Central Africa established by Cameroon, Central African Republic, Chad, Republic of Congo, Equatorial Guinea and Gabon to promote economic integration among countries that share a common currency, the CFA franc. CEMAC promotes the entire process of sub-regional integration through the forming of a monetary union with the Central Africa CFA Franc as its common currency. CEMACs objectives are the promotion of trade, the institution of a genuine common market, greater solidarity among peoples and towards under-privileged countries and regions. In 1994, CEMAC introduced quota restrictions and reductions in the range and amount of tariffs. Currently, CEMAC countries share a common financial, regulatory, and legal structure, and maintain a common external tariff on imports from non-CEMAC countries. In theory, tariffs have been eliminated on trade within CEMAC, but full implementation of this has been delayed. Movement of capital within CEMAC is free. In 1989, these six Central African countries formed a monetary union with the Bank of Central African States (BEAC) as the regional central bank. These two bodies BEAC and CEMAC constitute part of the Franc zone. The franc zone is made up of African states whose monetary policy is being directed by France especially in the domain of exchange rate with respect to currencies of other countries, convertibility to other currencies, centralization of international exchange reserves and harmonization of regulations. The Bank of the States of Central Africa (BEAC) is an African international establishment governed by the convention instituting the Monetary union of Central Africa (UMAC), the Convention of Monetary Cooperation passed between France and six member States of this Union: Republic of Cameroon, Central African Republic, Republic of Congo, Republic of Gabon, Republic of Equatorial Guinea and Republic of Chad. Monetary Policy in Cameroon The bank of issue in the CEMAC region and Cameroon in particular is the Bank of the Central African States (Banque des Etats de lAfrique Central? BEAC), which replaced the Central Bank of the State of Equatorial Africa and Cameroon in November 1972. Its headquarters are in Yaounde. In 1993, member states of the BEAC created a supranational supervisory authority, Commission Bancaire de lAfrique Centrale (COBAC) in order to secure the regions banking system. The common currency CFA, is pegged to EURO at a parity rate of 1Euro=655FCFA. The primary objective of BEAC is to maintain the fixed exchange rate regime. The attainment of this objective is complicated by differences between the economies of CEMAC in particular in relation to their dependence on oil exports. Common monetary policy is further exacerbated by limited labour and capital mobility between countries as well as restrictions in the movement of citizens across borders. Without prejudice to this objective, it brings its support of the general economic policy worked out in the Union. The main mission of BEAC comprises: defining the monetary policy of the Union; Monetary policy could be defined as a Program of action undertaken by monetary authorities to control and regulate the supply of money and the flow of credit to the public with a view to achieving macroeconomic objectives such as: maintaining high growth rate maintaining high rate of employment ensure equity in income distribution Balance of payments equilibrium Stability of foreign exchange issuing banknotes and official exchange rate and with exempting power in the Monetary union; Establishing the politics of exchange rate of the Union; keep and manage the official reserves of exchange rate of Member states; promote the good functioning of the systems of payment and of regulations. The convention governing the Monetary Union of Central Africa and the Statutes of the BEAC give the powers of formulation and implementation of monetary policy in the Franc Zone. The Monetary Policy Committee is the BEAC Decision-making body on monetary policy and management of foreign exchange reserves. Its mission and duties as well as its composition and rules of operation are specified in the Statutes of the Bank and its Rules of Procedure. The main responsibilities of the Monetary Policy Committee are to: †¢ Define the strategy and objectives of monetary policy and policy management of foreign exchange reserves as well as the modalities of their implementation; †¢ Set the conditions of intervention of the Central Bank; †¢ Require credit institutions to hold minimum reserves; †¢ Clarify the terms of execution by the Central Bank: lending or borrowing money, and the conditions of purchase transactions and sale of gold and those supported by the Central Bank to the member states for the issuance and management of government securities †¢ Proceed, if necessary, to revise the proceedings of National Committees Monetary and Financial in monetary policy which contravene the statutory provisions and the general rules of procedure, operation and jurisdiction. To achieve the ultimate objective of monetary stability, the CPM uses indirect monetary policy instruments, including liquidity management in part of the money market and the imposition of reserve requirements Since the introduction of money market on 1 July 1994, BEAC uses indirect instruments for its operations. This mode of action based on safe bank liquidity control is exercised through political refinancing (action on the supply of base money), supplemented by the imposition of reserve requirements (action on the demand for base money). The exchange rate regime of the six countries of the Economic and Monetary Community of Central Africa based on four basic principles: a fixed parity between the CFA franc (franc Financial Cooperation in Central Africa) and the euro; convertibility of the CFA franc guaranteed by France; total freedom of transfers between countries of the Franc Zone; and the pooling of foreign exchange reserves. The conduct of monetary policy is principally carried out by varying the amount and rate at which commercial banks are allowed to borrow at the discount window (la Politique de Refinancement). If required, BEAC withdraws liquidity from the system by using negative bids( offering a high interest rate for the placement of excess reserve) whereby commercial banks are offered a certain rate for the placement of their free reserve at the central bank. In addition, the central bank also sets a floor for lending rates and ceiling for deposit rates above and below which interest rates are negotiated freely. Over the years, BEAC has carried out several monetary policies in the region. Worthy of note are the following: In September 2001, BEAC decided to impose minimum reserve requirements on commercial banks in the region in order to contain the rise in liquidity. The level of required reserve is calculated based on the level of deposits on the 10th, 20th, and the 30th of each month and the commercial bank is required to satisfy these requirements on these dates. As a consequence of the different economic conditions in the CEMAC zone, BEAC decided in July 2004 to introduce differentiated reserve requirements across countries with a higher reserve ratio such as Cameroon, The Republic of Congo and Equatorial Guinea rather than Chad, Gabon and Central African Republic. In May 2003, reserve requirements in the Central African Republic were temporarily suspended in response to the difficult economic situation the country was going through. Currently, commercial banks receive remuneration on their required reserves at a rate which is fixed at 0. 4%. Also, BEAC has currently fixed a ceiling of not more than 1. 5% remuneration interest rates for demand deposits to encourage economic agents to invest or use their savings for other activities. This is because commercial banks and other financial institutions in the CEMAC zone are experiencing excess liquidity. Excess liquidity weakens the monetary policy transmission mechanism and thus the ability of monetary authorities to influence demand conditions in the economy. Brief History of BEAC 29 June 1901: Creation of the Banque dAfrique Occidentale B. A. O authorized to issue the franc in the French Occidental Africa to continue the activities of the â€Å"Banque du Senegal† (21 December 1853) ; 1920: Extension of the issue privilege to French Equatorial Africa (Afrique Equatoriale Francaise-AEF) ; 02 December 1941: Creation of the â€Å"Caisse Centrale de la France Libre† (CCFL), in charge of monetary issuing in Central Africa; 24 July 1942: Ordinance authorising the CCFL to issue money from the 1st of August 1942; 02 February 1944: Creation of the â€Å"Caisse Centrale de la France dOutre-Mer† (CCFOM) replacing the CCFL ; 25 December 1945: Creation of the â€Å"Franc des colonies francaises dAfrique† (FCFA) at a parity rate of 1 franc CFA = 1. 70 FF (French Franc); 17December 1948: Change of parity rate of the FCFA to FF: 1 F CFA = 2FF ; 20 January 1955: Creation of the Issuing Institue (lInstitut dEmission) of the A. E. F. and of Cameroon; 26 December 1958: Change of parity rate of the FCFA to FF: 1 FCFA = 0,02 FF ; 14 April 1959: Creation of the Bank of the Equatorial African States and of Cameroon (Banque Centrale des Etats de lAfrique Equatoriale et du Cameroun B. C. E. A. C. ) ; 22 November 1972: Creation of the Bank of the Central African States (Creation de la Banque des Etats de lAfrique Centrale B. E. A. C. ) and of the Franc de la Cooperation Financiere en Afrique Centrale F CFA ; 02 April 1973: Start of activities of BEAC ; 01 January 1977: Transfer of the Seat of Central Services (Head Quarters) of BEAC from Paris to Yaounde; 01 April 1978 : Appointment of Africans as Governor and Vice Governor of BEAC; 01 January 1985: Equatorial Guinea joins BEAC ; 16 October 1990: Important reforms and formulation intervention laws of the central bank and the creation of the Banking Commission of Central Africa (Commission Bancaire de lAfrique Centrale – COBAC); 12 January 1994: New parity rate: 1 FCFA = 0,01 FF ; 01 January 1999: Pegging of the F CFA to the Euro at a parity rate of 1 Euro = 655,957 FCFA. Banking Regulations in Cameroon The following are the banking regulatory bodies in Cameroon. COBAC (The Banking Commission for Central African States) MINFI: The Ministry of Finance NCC: The National Credit Council APECCAM: The Banking and Credit/Finance Association COBAC COBAC is the main regulator of the banking and microfinance in the six states of CEMAC. It ensures the solvency, profitability and liquidity of credit institutions and microfinance. It is responsible for the stability of the banking system of CEMAC and ensures the protection of deposits of depositors. On the institutional level, the COBAC is a member of CEMAC and is backed by BEAC and enjoys institutional independence. The authoritative document on Banking regulations is the COBAC text dated 17/01/1992 harmonizing banking regulations in the six member states. This text describes banks and other financial institutions. It provides for the licensing procedure for such institutions, as well as the appointment of their key executives (GM/DGM) as well as provides the approval procedures for banks auditors. It then stipulates on the controls to be effected, the reporting procedure and sanctions to contravening institutions. The text further lays out certain prudential guidelines for their operations. On the required minimum paid-up capital/capital adequacy On risk sharing For provisioning/risk coverage, On liquidity ratios etc. MINFI The Ministry of Finance is the main organ in charge of the fiscal policy of the country. It has four main directorates. The General Directorate of the Treasury and the Financial and Monetary Cooperation ( DGTCFM ) of Cameroon is one of the four Directorates created by Decree No. 2005/119 of 15 April 2005 bearing on the Organization of the Ministry of Economy and Finance. This is the name that has been maintained with the decree of 30 November 2008 on the Organisation of the Ministry of Finance, which did not really make any changes regarding its missions. The DGTCFM performs the following tasks: Budget implementation and maintenance of accounting the State, Regional and Local Authorities and Public Institutions Administrative; Management of the public treasury; Management of public debt; Issuing and managing government securities free subscription; Regulation and Control of Banks, Microfinance Institutions and Insurance Companies; Control Authorities Receipts and other organizations benefiting from state subsidies. Through this directorate, the finance Ministry controls all Banking activities in Cameroon especially:. Terms and conditions for banking services. Receives applications for licensing and/or the appointment of General Managers for Banks and Financial Institutions, and passes same to COBAC for approval/rejection and the latter has up to six months to so decide. In conjunction with the National Credit Council and the Governor of the Central Bank, rules on the following: The minimum capital for banks and finance houses. On the conditions for opening up branch offices. On Anti-trust issues and collaboration amongst the institutions etc NCC The National Credit Council was created by Presidential Decree no 96/138 of 24 June 1996 bearing on its composition, organization and functioning. The council pays an advisory role on all legal and regulatory activities concerning financial institutions especially in Classification of the said establishments into different categories, their minimum capital requirement, their legal form and their authorized activities; Conditions for creating branches; The closing down of financial institution, Operational issues such as, publication of financial documents; competitive advantage conditions; organization of common professional services. At the discretion of the monetary authority, NCC could also serve in an advisory capacity on regulations and decisions taken by BEAC. NCC also advises on the financing of economic programmes, conditions for state subventions, national and external. APECCAM The Professional Association of Credit Institutions of Cameroon is an advisory body under the Ministry of Finance in accordance with Decree No. 74/137 of 18 February 1974. Every Commercial Banks is required to join this association. Its role is particularly inter alia to enforce its members’ recommendations; banking regulations; and promote best practices in banking. ANEMCAM The National Association of Microfinance Institutions of Cameroon is to MFIs what APECCAM is to commercial banks. Most especially ANEMCAM is concerned with enforcing ethical banking issues in MFIs. Monetary Controls The general monetary controls that banks respect (or ought to) are within the reporting / publishing and control functions of the regulatory authorities. In particular they have to report to the regulatory authorities on :- Monthly statement or cheques without cover to the N. C. C. A quarterly statement of all loans. Casual overdrafts short mid and long term loans, nonperforming loans, contingents etc. This enables the NCC to publish the Centrale des Risques . Details on deposit mix, per bank and by branch. The every ten (10) day report to BEAC on the external position ie. NOSTRO Account balances. This is to enable the authorities to monitor against excessive holdings abroad. Conclusion BEAC is the monetary policy maker of CEMAC in general and Cameroon in particular. BEAC, through the regulatory bodies makes a reforms in the sector, imposing policies and regulations to assure the stability of the Banking system This regulatory structure creates transparency between banking institutions and the individuals and corporations with whom they conduct business, among other things. While COBAC, MINFI and NCC are concerned with banking regulations and operations, APECCAM and ANEMCAM deal with ethical baking issues in commercial banks and microfinance institutions respectively. Generally Bank Supervision is needed to reduce moral hazards, ensure that banks take only sensible risks, maintain reserve requirements to subsequently control money supply. Today, there is free movement of goods and services across the frontiers which indicate a borderless economy. This therefore calls for improvements on security measures as far as commerce is concerned. Investors will not appreciate investing in a State where their investments cannot be guaranteed. The Government of Cameroon, in particular, and the other CEMAC member states in a bid to assure the stability of the Banking system and in response to this pertinent global problem keeps modifying its Banking Regulations to guarantee foreign investment. The Banking Industry in Cameroon is governed by laws and regulations derived from International Conventions, Customs Laws, Ordinances, Presidential Decrees, Ministerial Orders, Circulars and Court Decisions. These regulatory instruments are flexible in character, meaning they can be a subject of modification based on some socio-cultural, political and economic development within Cameroon.