Bank Management

A
PROJECT REPORT
ON
BANK MANAGEMENT

IN
THE PARTIAL FULFILLMENT OF REQUIREMENT FOR THE AWARD OF
THE DEGREE
Of
MASTER OF COMPUTER APPLICATIONS

Under the supervision of: Submitted by:

Mr. Piyush Prakash Sweety

Asst. Professor Univ Roll no. -3210521
Deptt. of Computer Science & Applications MCA 6th Semester.
P.D.M College of Engineering

DEPARTMENT OF COMPUTER SCIENCE & APPLICATIONS

P.D.M. COLLEGE OF ENGINEERING, BAHADURGARH
(AFFILIATED TO MAHARSHI DAYANAND UNIVERSITY)
ROHTAK - 124001

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CANDIDATES’S DECLARATION

I, “Sweety Dalal”, hereby declare that the work presented in theproject report entitled
“Bank Management” submitted to Department of Computer Science & Applications,
P.D.M College Of Engineering., affiliated to Maharishi Dayanand University, Rohtak for
the partial fulfillment of the award of degree of”Master of Computer Application”
authentic record of my work carried out during the final semester, 2012at NIIT, under the
supervision of Mr.piyush sir Information) and Internal Guide as Mr Piyush Prakash,
Department of Computer Science & Applications , PDM College Of Engineering.

The matter embodied in this project report has not been submitted else where by anybody
for the award of any other degree.

Sweety
(MCA 6th semester)
Univ Roll No.-3210521

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ACKNOWLEDGEMENT
I would like to thank people who were part of this work innumerous ways. In
particular, I wish to thank Ms. Mayank (Trainer), my project guides for their suggestions
and improvementsin this project and providing continuous guidance at each and every
stage of the project.Thanks are extended especially to my guide Mr. Piyush (AP,P.D.M.
College of Engineering) and to Prof.(Dr.) S. Srinivasan (HOD, CSA Department, P.D.M.
College of Engineering). I must also be thankful to my classmates and friends for their
continuous co-operations and help in completing this project.
Last but not the least, I want to express my thanks to my parents and family members for
their support at every step of life.

Sweety
(MCA 6th semester)
Univ Roll No.-3210521

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INDEX

Contents

S.No Page No.

1 Introduction 5-6

1.1 Company Profile

1.2 Problem Definition

2 System Study 7-13

2.1 Existing System

2,2 Proposed System
2.3 Brief Feasibility Study
2.4 Requirement Specification

3 System Analysis 14-19

3.1 Data Flow Diagrams

3.2 Entity Relationship Diagrams
3.3 System Flowchart

4 System Design 20-26

4.1 Input & Output Design

4.2 Database Design

5 System Testing 27-29

6 System Implementation 29-31

7 System Securities and Maintenance 32-33

8 Conclusions and Scope for Future 34-36

9 Bibliography 37

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Chapter 1
Introduction

1.1 COMPANY PROFILE

About NIIT

What started in 1981 as an IT Training institute with the mission of “Bringing computers
and people together, successfully”, is today an organization that drives IT education
throughout the world. An Indian multinational with a presence in 32 countries, NIIT’s
learning solutions today benefit individuals, power enterprises and facilitate institutions
in Information Technology, and beyond.

Recognised today for its pioneering leadership of distributed non-formal education, NIIT
teaches over 500,000 students in 10 languages through a network of 3000 outlets
worldwide, and has an alumni strength of 2 million students in 25 years of operation.
With many accolades and awards to its credit, NIIT is the only Asian company to feature
in International Data Corporation’s list of Top 20 Global IT Training Providers. NIIT is
proud of the recognition it has received for its contribution to India’s pre-eminence in
Information Technology, having trained a significant proportion of the country’s IT
workforce.

Since the beginning, NIIT has emphasized the use of technology for education. Not only
are all its education programs technology-intensive, but NIIT also provides technology-
based learning solutions to the leading corporations of the world. With a strong team
working exclusively on technology-enabled education, NIIT has many pioneering
innovations to its credit. Its proprietary Learning Management System, CLiKS, is used by
several institutions and companies, and its Netvarsity established in 1996 was the first e-
learning portal of its kind.

NIIT’s reach is not only across the world, but across age-groups and categories as well. It
teaches over 1.25 million school students, several thousand corporate executives, and has
partnerships with 69 Universities worldwide–to whom it is both a provider of technology
and content, and a partner in the formal education space.

NIIT has a string of innovations to its name. Together with its sister company NIIT
Technologies Ltd, it pioneered the teaching-hospital model of IT education. It set up
Automated Learning Centres for working executives in 1993, and introduced
Synchronous Learning to its global clients in 2001. It is this culture of innovation that
now leads to NIIT Imperia – Centre for Advanced Learning, a worthy culmination of

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NIIT’s expertise in technology-enabled distributed education, and its partnership with the
leading institutions of the world.

1.2 PROBLEM DEFINATION

A bank maintains files, folders and records for various types of details of its various
departments.

To search for urgently required information, an employee has to take all the related files and
folder out of the shelves and need each page to be checked, still there are no chance of 100%
accuracy.

Doing all this manually is a time consuming and error prone approach.

The objective is to prepare a system or application, which could maintain data and provide a
user-friendly interface for retrieving information about any department of the bank in a few
seconds, with 100% accuracy .
The problem could be solved in two steps:-

1) Maintaining the database:

This includes to provide an efficient storage, retrieval and updation of the information of the
various departments of the bank.

2) Providing a user-friendly interface:-to perform the various operations on the database of

the bank for quick and easy access on the information kept in the bank’s database.

The application is named as ”BANK MANAGEMENT”.

Considering all requirements and time restriction, JAVA is the best answer to the above
problem

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Chapter 2
System Study

2.1 EXISTING SYSTEM

The biggest economic puzzle of the past few years is why the recovery has remained so
weak. The underlying cause of the 2007-2009 recession was the bursting of the real estate
bubble. But it was the banking crisis resulting from the drop in home prices that actually
sent the U.S. tumbling into the worst economic downturn since the Great Depression.
Continuing problems in the banking industry have been among the chief factors holding
back the recovery. The key question now is whether the banks have finally tackled their
problems, so that the economy can start to grow more robustly.

It certainly seems as though the banking sector should be on the mend. Home prices have
turned up after hitting bottom early last year. And other borrowers are in better shape,
too. Corporate profits have rebounded powerfully, and consumers have got their
household. So you might think that banks would be in a stronger position to finance
economic growth. The reality, however, is more complicated. The losses banks suffered
because of falling home prices exposed a host of fundamental problems in the industry.
Here’s a look at what needs to be addressed to get the financial system back to full
strength:

Regulation . There are two key types of regulation. The first limits the amount of risk a
bank can take. Only trouble is, it’s hard for regulators – or anyone else – to monitor the
riskiness of bank portfolios. Indeed, the major credit-rating agencies have come under
sharp criticism for failing to recognize the risk of some sophisticated investments. The
second type of regulation separates aggressive forms of banking from more mundane
lending for mortgages, businesses, and consumer finance. That prevents speculative
losses from leading to a cutback in credit available for ordinary business activities. A
provision known as the Volcker Rule restricts banks from making risky investments with
the same capital that they use to make loans to clients. But the rule does not require the
nearly complete separation of commercial and investment banking that the old Glass-
Steagall act did. Moreover, financial firms already seem to be finding ways to get around
the complex provisions of the Volcker Rule.

Credit quality. Looser regulation wasn’t the only thing that led to risky investing before
the recession. Federal Reserve Chairman Alan Greenspan pursued an easy-money policy
that encouraged banks to lend as much as possible. And since the number of high-quality
borrowers is always limited, expansive lending led to a decline in creditworthiness and an

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increase in so-called subprime real estate lending. Today banks are more cautious. But the
Fed is still very expansive, so the potential for speculation remains.

Sophisticated investments. What sent risk levels into overdrive prior to the recession
was the growth of sophisticated investments – sometimes known as derivatives – that
repackaged mortgages and other loans so that they could easily be bought and sold. These
vehicles increased the scale of potential losses if loans went bad. They also made it
difficult for outsiders – and sometimes even for banks themselves – to gauge how risky
their portfolios were. Although the volume of derivatives outstanding has declined a bit
recently, it still remains very high by historical standards.

Transparency. The difficulties outsiders face in trying to figure out the true risks in bank
portfolios is analyzed in a recent Atlantic cover story. According to the article, the biggest
cause of panic during the financial crisis was that “it was impossible to tell, from looking
at a particular bank’s disclosures, whether it might suddenly implode.” The article goes
on to conclude that the situation is not much different today.

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2.2 PROPOSED SYSTEM

The Domain “Banking System " keeps the day by record as a complete
banking. It can keep the information of Account type, account opening form, Deposit,
Withdrowal, and Searching the transaction, Transaction report, Individual account
opening form, Group Account. The exciting part of this project is; it displays Transaction
reports, Statistical Summary of Account type and Interest Information.

“Banking System " keeps the day by day tally record as a complete banking. It can
keep the information of Account type, account opening form, Deposit, Withdrawal, and
Searching the transaction, Transaction reports, Individual account opening form, Group
Account. The exciting part of this project is; it displays Transaction reports, Statistics
Summary of Account type and Interest Information.

In the existing system the transactions are done only manually but in
proposed system we have to computerize all the banking transaction using the software
BankingSystem.

System analysis is a process of gathering and interpreting facts, diagnosing problems

and the information to recommend improvements on the system. It is a problem solving
activity that requires intensive communication between the system users and system
developers. System analysis or study is an important phase of any system development
process. The system is studied to the minutest detail and analyzed. The system analyst
plays the role of the interrogator and dwells deep into the working of the present system.
The system is viewed as a whole and the input to the system are identified. The outputs
from the organizations are traced to the various processes. System analysis is concerned
with becoming aware of the problem, identifying the relevant and decisional variables,
analyzing and synthesizing the various factors and determining an optimal or at least a
satisfaction.

A detailed study of the process must be made by various techniques like interviews,
questionnaires etc. The data collected by these sources must be scrutinized to arrive to a
conclusion. The conclusion is an understanding of how the system functions. This system
is called the existing system. Now the existing system is subjected to close study and
problem areas are identified. The designer now functions as a problem solver and tries to
sort out the difficulties that the enterprise faces. The solutions are given as proposals. The
proposal is then weighed with the existing system analytically and the best one is
selected. The proposal is presented to the user for an endorsement by the user. The
proposal is reviewed on user request and suitable changes are made. This is loop that
proposal.

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Preliminary study is the process of gathering and interpreting facts, using the
information for further studies on the system.

 The user can explore the options given by s/w.

 Retrieval of information can be done very fast using this s/w.

 It also avoids a dedicated employee engaged in data management.

 Provides a base to increase company sales.

 Provides high level of user satisfaction and comfort.

 Consolidated reports to the management, which would help it take timely

decision.

 No paper work is required.

 Change can be implemented easily.

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2.3 FEASIBILTY STUDY

A feasibility study is an evaluation and analysis of the potential of the proposed

project which is based on extensive investigation and research to give full comfort to
the decisions makers. Feasibility studies aim to objectively and rationally uncover the
strengths and weaknesses of an existing business or proposed venture, opportunities and
threats as presented by the resource required to carry through, and ultimately the
prospects for success. In its simplest terms, the two criteria to judge feasibility are cost
required and value to be attained As such, a well-designed feasibility study should
provide a historical background of the business or project, description of the product or
service accounting statements, details of the operations and management research and
policies, financial data, legal requirements and tax obligations. Generally, feasibility
studies precede technical development and project implementation.

Objective and Unbiased

A feasibility study evaluates the project's potential for success; therefore, the perceived
objectivity is an important factor in the credibility to be placed on the study by potential
investors and lending institutions. It must therefore be conducted with an objective,
unbiased approach to provide information upon which decisions can be based. Five
common factors

The acronym TELOS refers to the five areas of feasibility - Technical, Economic, Legal,
Operational, and Scheduling.

Technology and system feasibility

The assessment is based on an outline design of system requirements, to determine
whether the company has the technical expertise to handle completion of the project.
When writing a feasibility report, the following should be taken to consideration:

 A brief description of the business to assess more possible factor/s which could
affect the study
 The part of the business being examined
 The human and economic factor
 The possible solutions to the problems

At this level, the concern is whether the proposal is both technically and legaly feasible
(assuming moderate cost).

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Legal feasibility
Determines whether the proposed system conflicts with legal requirements, e.g. a data
processing system must comply with the local Data Protection Acts.

Operational feasibility
Operational feasibility is a measure of how well a proposed system solves the problems,
and takes advantage of the opportunities identified during scope definition and how it
satisfies the requirements identified in the requirements analysis phase of system
development.

The operational feasibility assessment focuses on the degree to which the proposed
development projects fits in with the existing business environment and objectives with
regard to development schedule, delivery date, corporate culture, and existing business
processes.

Economic Feasibility
The purpose of the economic feasibility assessment is to determine the positive economic
benefits to the organization that the proposed system will provide. It includes
quantification and identification of all the benefits expected. This assessment typically
involves a cost/ benefits analysis.

Technical Feasibility
The technical feasibility assessment is focused on gaining an understanding of the present
technical resources of the organization and their applicability to the expected needs of the
proposed system. It is an evaluation of the hardware and software and how it meets the
need of the proposed system

Schedule feasibility
A project will fail if it takes too long to be completed before it is useful. Typically this
means estimating how long the system will take to develop, and if it can be completed in
a given time period using some methods like payback period. Schedule feasibility is a
measure of how reasonable the project timetable is. Given our technical expertise, are the
project deadlines reasonable? Some projects are initiated with specific deadlines. You
need to determine whether the deadlines are mandatory or desirable

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2.4 REQUIREMENT SPECIFICATION

HARDWARE USED

Processor : Pentium IV
RAM : 512MB
Hard Disk : 80GB
Other : Printer

SOFTWARE USED

For Front-End
JAVA JDK7

For Back-end
MySql 5.1.15

For connectivity
Mysql-connector.jar 5.1.18

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Chapter3

3 SYSTEMS ANALYSIS
“Systems analysis is the dissection of a system into its component pieces to study how
those component pieces interact and work.
“We do a systems analysis to subsequently perform a systems synthesis.
"Systems synthesis is the re-assembly of a system's component pieces back into a whole
system-it is hoped an improved system.
"Through systems analysis and synthesis, we may add, delete, and modify system
components toward our goal of improving the overall system.

"Moving from the theoretical definition to something a bit more contemporary, Systems
analysis is a term that collectively describes the early phases of systems development.
There has never been a universally accepted definition. And there has never been
agreement on when analysis ends and design begins. To further confuse the issue, some
methodologies refer to systems analysis as logical design. Typically, each organization's
methodology of choice determines the definition for that organization. In the FAST
methodology, systems analysis is defined as those phases and activities that focus on the
business problem, independent of technology(for the most part). Specifically, we refine
our definition of systems analysis as follows.

"Systems analysis is (1) the survey and planning of the system and project, (2) the study
andanalysis of the existing business and information system, and (3) the definition of
businessrequirements and priorities for a new or improved system. A popular synonym is
logicaldesign.

"This definition corresponds to the first three phases of FAST. The phase "configure a
feasible solution" would be considered part of systems analysis by some experts. We
prefer to think of it as an analysis-to-design transition phase..

"Systems analysis is driven by business concerns, specifically, those of system users.

Hence, it addresses the DATA, PROCESS, INTERFACE, and GEOGRAPHY building
blocks from a system user perspective. Emphasis is placed on business issues, not
technical or implementation concerns.
"A repository is a collection of those places where we keep all documentation associated
with the application and project.

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"The repository is normally implemented as some combination of the following:

- A disk or directory of word processing, spreadsheet, and other computer generated files
that contain project correspondence, reports, and data.
- One or more CASE local repositories.

3.1 DATAFLOW DIAGRAM

Data Flow Diagrams (DFD) helps us in identifying existing business processes. It is a
technique we benefit from particularly before we go through business process re-
engineering.

At its simplest, a data flow diagram looks at how data flows through a system. It concerns
things like where the data will come from and go to as well as where it will be stored. But
you won't find information about the processing timing (e.g. whether the processes
happen in sequence or in parallel).

We usually begin with drawing a context diagram, a simple representation of the whole
system. To elaborate further from that, we drill down to a level 1 diagram with additional
information about the major functions of the system. This could continue to evolve to
become a level 2 diagram when further analysis is required. Progression to level 3, 4 and
so on is possible but anything beyond level 3 is not very common. Please bear in mind
that the level of detail asked for depends on your process change

DFD ON THE CUSTOMER DETAILS

ADD/
CUSTOMER DETAILS DELETE/
UPDATE DATABASE
RECORDS

LEVEL 0 DFD

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DFD ON THE EMPLOYEE DETAILS

ADD/
EMPLOYEE DETAILS DELETE/
UPDATE DATABASE
RECORDS

LEVEL 0 DFD

DFD ON THE ACCOUNT DETAILS

ADD/
ACCOUNT DETAILS DELETE/
UPDATE DATABASE
RECORDS

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LEVEL 0 DFD

DFD ON THE LOAN DETAILS

ADD/
LOAN DETAILS DELETE/
UPDATE DATABASE
RECORDS

LEVEL 0 DFD

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3.2 ENTITY RELATIONSHIP DIAGRAM

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3.3 SYSTEM FLOWCHART

Flowcharts are used in designing and documenting complex processes or programs. Like
other types of diagrams, they help visualize what is going on and thereby help the viewer
to understand a process, and perhaps also find flaws, bottlenecks, and other less-obvious
features within it. There are many different types of flowcharts, and each type has its own
repertoire of boxes and notational conventions. The two most common types of boxes in
a flowchart are:

 a processing step, usually called activity, and denoted as a rectangular box

 a decision, usually denoted as a diamond.

A flowchart is described as "cross-functional" when the page is divided into different

swimlanes describing the control of different organizational units. A symbol appearing in
a particular "lane" is within the control of that organizational unit. This technique allows
the author to locate the responsibility for performing an action or making a decision
correctly, showing the responsibility of each organizational unit for different parts of a
single process are an alternative notation for process flow.

Common alternate names include: flowchart, process flowchart, functional flowchart,

process map, process chart, functional process chart, business process model, process
model, process flow diagram, work flow diagram, business flow diagram. The terms
"flowchart" and "flow chart" are used interchangeably.

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Chapter4

4 SYSTEM DESIGN
Systems design is the process of defining the architecture, components, modules,
interfaces, and data for a system to satisfy specified requirement. Systems design
could see it as the application of systems theory to product development. There is
some overlap with the disciplines of systems analysis, systems architecture and
systems engineering

. Object-oriented analysis and design methods are becoming the most widely used
methods for computer systems design. The UML has become the standard language in
object-oriented analysis and design. It is widely used for modeling software systems and
is increasingly used for high designing non-software systems and organizations.

Logical design
The logical design of a system pertains to an abstract representation of the data flows,
inputs and outputs of the system. This is often conducted via modelling, using an over-
abstract (and sometimes graphical) model of the actual system. In the context of systems
design are included. Logical design includes ER Diagrams i.e. Entity Relationship
Diagrams.

Physical design
The physical design relates to the actual input and output processes of the system. This is
laid down in terms of how data is input into a system, how it is verified/authenticated,
how it is processed, and how it is displayed as output. In Physical design, following
requirements about the system are decided.

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1. Input requirement,
2. Output requirements,
3. Storage requirements,
4. Processing Requirements,
5. System control and backup or recovery.

Put another way, the physical portion of systems design can generally be broken down
into three sub-tasks:

1. User Interface Design

2. Data Design
3. Process Design

User Interface Design is concerned with how users add information to the system and
with how the system presents information back to them. Data Design is concerned with
how the data is represented and stored within the system. Finally, Process Design is
concerned with how data moves through the system, and with how and where it is
validated, secured and/or transformed as it flows into, through and out of the system. At
the end of the systems design phase, documentation describing the three sub-tasks is
produced and made available for use in the next phase.

Physical design, in this context, does not refer to the tangible physical design of an
information system. To use an analogy, a personal computer's physical design involves
input via a keyboard, processing within the CPU, and output via a monitor, printer, etc. It
would not concern the actual layout of the tangible hardware, which for a PC would be a
monitor, CPU, motherboard, hard drive, modems, video/graphics cards, USB slots, etc. It
involves a detailed design of a user and a product database structure processor and a
control processor. The H/S personal specification is developed for the proposed system.

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4.1 INPUT&OUTPUT DESIGN

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4.2 Database Design

Account table

Acc_no Cus_name Open_date Acc_bal Acc_type

5001 reena 1988-12-12 6000 saving

Customer table

Cus_id Cus_name Cus_location Cus_phone

Sc001 Reena canada 1234

Employee table

Emp_id Emp_nam Emp_desi Emp_sal Emp_ad

Se001 sweety Executive 3000 lawrenc

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Loan table

Loan_num Cus_name Loan_date Loan_amt

8001 Reena 1989-01-25 8000

Password table

Emp_table User_name password

Sc001 Apple guava

Chapter5
SYSTEM TESTING
System testing of software or hardware is testing conducted on a complete, integrated
system to evaluate the system's compliance with its specified requirements. System
testing falls within the scope of black box testing, and as such, should require no
knowledge of the inner design of the code or logic.

As a rule, system testing takes, as its input, all of the "integrated" software components
that have successfully passed integration testing and also the software system itself
integrated with any applicable hardware system(s). The purpose of integration testing is
to detect any inconsistencies between the software units that are integrated together
(called assemblages) or between any of the assemblages and the hardware. System
testing is a more limited type of testing; it seeks to detect defects both within the "inter-
assemblages" and also within the system as a whole.

Types of System Testing

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There are more than 50 types of System Testing. For an exhaustive list of software testing
types click here. Below we have listed types of system testing a large software
development company would typically use

1. Usability Testing – Usability testing mainly focuses on the user’s-ease to use the
application, flexibility in handling controls and ability of the system to meet its
objectives
2. Load Testing – Load testing is necessary to know that a software solution will
perform under real life loads.
3. Regression Testing – Regression testing involves testing done to make sure none
of the changes made over the course of the development process have caused new
bugs. It also makes sure no old bugs appear from the addition of new software
modules over time.
4. Recovery Testing – Recovery testing is done to demonstrate a software solution
is reliable, trustworthy and can successfully recoup from possible crashes.
5. Migration Testing – Migration testing is done to ensure that the software can be
moved from older system infrastructures to current system infrastructures without
any issues.
6. Functional Testing – Also known as functional completeness testing, functional
testing involves trying to think of any possible missing functions. Testers might
make a list of additional functionalities that a product could have to improve it
during functional testing.
7. Hardware/Software Testing – IBM refers to Hardware/Software testing as
“HW/SW Testing”. This is when the tester focuses his/her attention on the
interactions between the hardware and software during system testing

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Chapter 6
SYSTEM IMPLEMENTATION
1. This note is intended to help shift the implementation paradigm for
Bank-financed operations toward organizational structures that
systematically foster more sustainable capacity development through
greater use of and support for country systems and institutions, while
ensuring timely project implementation and disbursement. The Bank
has long recommended that stand-alone project implementation units
(PIUs) be mainstreamed into existing ministry structures, because
they are inconsistent with the Bank’s mission of capacity development
and institutional strengthening in developing countries.

2. Focus. The focus of this note is twofold: (a) on the nature and
design of organizational structures for implementation of Bank-
financed projects and the priority accorded to sustainable country
institution development;2 and (b) on internal incentives and practices
to support Bank staff in assisting borrowers with project management.

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3. Purpose. The note aims to raise awareness among Bank staff and
managers, stimulate sharing of experiences across Regions and
sectors, and foster deeper reflection on development effectiveness
during the preparation and implementation of lending operations. It is
primarily intended as internal guidance to Bank staff and managers,
but is also expected to contribute to knowledge on good practice that
can be shared with borrowing country officials and other external
partners.

4. The note recognizes that the approach and pace of transition from
PIUs to government ministries and institutions will vary by country
and by project. Therefore, it does not attempt to prescribe “how to”
because of the wide differences among countries and sectors in their
implementation capacity and specific needs and circumstances.

5. The note by itself is not sufficient to make a difference in practice; the new
implementation paradigm will have to be applied in day-to-day operations by staff and
managers—for example, task team leaders, who lead project
3

6. Section II provides background on PIUs, their consequences, and

their typology. Section III contains guidance in project management,
describing how Bank processes and systems can be better adapted to
achieve greater focus on sustainable institutional capacity
development. Section IV points to the critical roles of incentive
systems and Management actions in changing staff behavior. The
Annex presents “good practice” examples of project management to
illustrate ways of addressing both implementation performance and
sustainable institutional capacity development.

7. Organizational structures for project management should be responsible and

accountable for implementation of the project and for timely progress and expenditure
reporting that adheres to Bank policies and guidelines. The common approach, introduced
over 40 years ago as a technical solution to deliver engineering projects in newly
independent developing countries, is to create a “cell” dedicated to implementing the
project.3 Over time, PIUs became vehicles to bypass local bureaucracies to “get the job
done.” Since the Bank’s internal incentives—such as lending cycles that
8. PIU Consequences. In all Regions and types of projects, PIUs
have often undermined long-term institutional development in
countries’ line ministries, sustainability,4 and ownership, and have
often created tensions with sector ministries.

􀂾A study by the Middle East and North Africa Region5 found that
while PIUs have facilitated monitoring and implementation of
Bank-financed projects, they have “failed dismally in terms of
any positive long-term impact on capacity building and

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institutional development” in line ministries; they “supplant

rather than supplement existing capacity.”

􀂾A study in the Latin America and the Caribbean Region6 found
that implementing projects “within government structures”
enhanced administrative and operational coordination with
government support and “provided greater opportunity for
capacity building and institutional development,” and that such
projects were “more likely to be sustainable.” Locating PIUs
outside the government structure resulted in a lack of learning
and of coordination across agencies, eroding performance.

8. Although PIUs can include government staff to varying levels, frequently they
employ contracted national and expatriate staff whose pay scales, financed by
loan/credit proceeds, are much higher than those of government staff at equivalent
skills/grades10—a source of tension with ministries. Some countries give
government employees leave of absence without pay to enable them to accept the
higher salaries from projects while serving on a PIU.
9. 10. PIU Typology. In practice, PIUs vary in size, function,
physical location, legal status, degree of integration into
existing country structures, and effects on the country’s long-
term capacity. In general, the degree of integration into existing
institutions is positively correlated with the projects’
contribution to developing the capacity of implementing
agencies.
10. 􀂾“Stand-alone” or “enclave” PIUs are generally
considered most detrimental to long-term institutional
development. They are typically created outside the structure of
an implementing ministry/agency. They often recreate (or even
duplicate) functions and capabilities of the ministry that
oversees the sector, and are responsible for all implementation
in a “turnkey” fashion, handing over the completed project to
the administration for operation.
11. 􀂾Semi-integrated PIUs partially use existing
structures augmenting them with some capacity. For instance, a
PIU may be headed by one of the directors responsible for the
project area, while long-term technical assistance and/or
specialists address some functions and capabilities.
Alternatively, a ministry may retain responsibility for managing
content (e.g., planning, finance, administration) while
outsourcing the fiduciary management of the Bank-financed
project (e.g., procurement, financial management and
reporting).
12. 􀂾“Super” PIUs, a variant of the stand-alone or semi-
integrated type, handle multiple projects in a sector (financed

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by different donors), multiple sectors financed by a single donor,

or related projects in a region.11 The key difference from the
first two types
13. 12
In Uganda’s highways sector, a super PIU financed by
several donors to manage the projects they were financing, has,
after seven years and several projects, morphed into a
sustainable sector institution.
14. 11. Since country institutions are not always sufficiently
developed to undertake project implementation, there may
occasionally be a place for PIUs. Particularly challenging may be
multisectoral projects that involve multiple ministries and
implementing agencies, or projects with new clients (e.g.,
subnational governments) that lack experience with Bank
projects.

15. 12. When establishing project management arrangements,

however, in all cases it is essential to maximize the use of
existing staff and institutions.

16. country’s structures and processes. It is also important to agree on a strategy for
full integration, and for phasing out any enclave units as rapidly as possible, by
preparing a time-bound action plans for necessary capacity development, such as
training.

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Chapter 7
SYSTEM SECURITIES & MAINTENANCE
Maintenance, repair, and operations (MRO) or maintenance, repair, and overhaul
involves fixing any sort of mechanical, plumbing or should it become out of order or
broken (known as repair, unscheduled or casualty maintenance). It also includes
performing routine actions which keep the device in working order (known as scheduled
maintenance or prevent trouble from arising (preventive maintenance MRO may be
defined as, "All actions which have the objective of retaining or restoring an item in or to
a state in which it can perform its required function. The actions include the combination
of all technical and corresponding administrative, managerial, and supervision actions."

MRO operations can be enterprise by whether the product remains the property of the
customer, i.e. a service is being offered, or whether the product is bought by the
reprocessing organisation and sold to any customer wishing to make the purchase
(Guadette, 2002). In the former case it may be a backshop operation within a larger
organization or smaller operation.

The former of these represents a closed loop supply chain and usually has the scope of
maintenance, repair or overhaul of the product. The latter of the categorisations is an
open loop supply chain and is typified by refurbishment and remanufacture. The main
characteristic of the closed loop system is that the demand for a product is matched with
the supply of a used product. Neglecting asset write-offs and exceptional activities the
total population of the product between the customer and the service provider remains
constant.

The point, as Anat Admati and Martin Hellwig put it in their crucial new book “The
Bankers’ New Clothes” is that “Although risk and losses from excessive market
speculations are bigger media events, traditional lending can be just as risky and can lead
to very large losses.” The rhetoric of “plain vanilla banking” makes it sound as if making
traditional loans is relatively risk-free. Yet historically, it’s traditional lending gone wrong
that’s led to financial crises. In fact, since the late nineteen-seventies, out-of-control
lending led to three different banking crises in the U.S. (the sovereign-debt crisis of the
nineteen-eighties, the S&L debacle, and the commercial and business real-estate bubble
of the late eighties), even before the housing bubble hit. Disclosure, and limits on trading,
are good things. But even simple, open banks are, as history shows, risky. The key is
ensuring that banks are more resilient to the possibility of failure, and that they bear more
of their own risks, rather than sloughing them off on the rest of us.

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What does this mean in practice? Well, the biggest issue with the way banks work these
days is that they’re funded almost entirely by debt—in other words, nearly all of the
money they lend out is itself borrowed. This has a number of negative consequences.
First, it encourages recklessness, since the banks are in effect gambling with other
people’s money. Second, it means that banks have very little cushion if they make
mistakes—even relatively small declines in the value of their loans can put them on the
verge of technical insolvency. And since some of the biggest holders of bank debt are
other banks, the heavy reliance on borrowing means that if one institution gets into
trouble, its problems can easily cascade through the system, weakening other banks as
well.

As it happens, though, there’s a way to change this—as Admati and Hellwig persuasively
argue, we should simply require banks to hold more equity capital, and less debt. (Equity
isn’t the same thing as reserves; banks can raise equity either by selling more shares to
the public or just retaining earnings and investing them in the company.) Bankers hate
this idea when it’s applied to them, because they think it will reduce their profits, and
therefore their salaries. But the irony is that when it comes to the loans they make, most
of them understand the value of equity perfectly well. If you want to start a restaurant,
and you ask a bank for a loan, any sensible banker is going to insist that you put a sizable
amount of money down—that is, that you have a significant chunk of equity in the
business—before they lend you any money. They do this because they know that if you
don’t have real equity in the business, they’ll be running almost all of the risk, while
you’ll be making most of the profits, which will encourage you to take reckless gambles.
(This is also why, these days, the only way banks will issue low-down-payment
mortgages is if they’re insured by the federal government). Yet when it comes to their
own operations, banks want to put as little down as possible—they want to be “equity-
light.”

It’s easy to understand why banks take this approach—not only does it seem to be a way
of supercharging their return on investment, but equity looks more expensive than debt,
particularly when bank stocks are depressed. But having more equity does not wreck
profits—in fact, plenty of American corporations, including companies like Apple and
Google, are funded almost entirely by equity rather than debt. And in any case, bank debt
is cheap because of what you might call the socialization of risk, particularly with the big
banks: debtholders are willing to lend money cheaply to them because they think they’re
too big to fail. That means the money is falsely cheap—the government is, in effect,
subsidizing bank borrowing. And this falsely cheap debt, in turn, encourages banks to
think that they’re smarter, and safer, than they actually are.

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CHAPTER 8
CONCLUSIONS AND SCOPE FOR FUTURE

8.1 CONCLUSION
developed, which achieves the following goals:

 Various user accounts can be used dynamically.

 The user can work on the data of his department independent of others.

 The Bank Manager can access the data of all the departments.

 Error free and fast record processing is possible.

 The application is protected by security code.

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8.2 SCOPE FOR FUTURE

After the market meltdown of 2008, and the sudden realization that our Banks were
exposed and faced bankruptcy, our Governments stepped in and bailed many of these
Banks out with taxpayers money, effectively taking over their debts.

The old pre-crash Banking system was complex, large Banks became internationalized
with the Global Economy, and often used depositors savings to hand out loans to
consumers outside their own national boundaries. As these banks grew, so did the need
for profits, and credit. This ended when markets realized these profits were based on
overvalued property prices and stocks in the US and the UK Technically leaving these
Banking giants exposed to toxic debts, and the personal debts of creditors due to over-
extended credit.

Governments stepped in buying shares in some cases or in other cases effectively taking
over these banking giants that dominated the old era of fast Globalization.Technically
keeping Banks open that lost trillions of dollars in speculating in a false bubble economy.

Many people were angry, those in debt and unable to obtain further credit faced personal
bankruptcy, whilst the sudden realization that our Bankers who are traditionally pillars of
good money management, had turned out to be as short-sighted and bad at money casino.

But that was then, So what is the future of these Banks?

Many Bailed out or Nationalized Banks are in reality Global Banks. That simply means
although they are over exposed in one Country, they may be profitable in another
Country. Citibank are a good example of this, with a presence in most Countries in the
World.In most cases large Banking concerns have an 'autonomous' Branch in each
Country, which often means that they are protected nationally, rather then Internationally:

In the last Banking crisis in Argentina, depositors found International Banks closed, and
their savings gone. Irrespective of the fact many of these banks were profitable outside
Argentina, leading to a trend were Argentineans today prefer to deposit funds in a
protected local Bank.

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With Governments effectively "owning" many of these International Banks, these

overseas "Branches" could be sold off to localized interests. This was the case of Morgan
Stanley that sold off its Asian-based Branch to a cartel of local Investors.This should cut
the excess fat off these bloated, over-exposed Banks, and bring in additional income that
should help to lower their huge debt levels. Therefore technically severing ties of these
autonomous regional banks, that still remain profitable, locally.

Selling assets raises money, and could help relieve the burden nationally these failed
banks have passed onto Governments via the Taxpayer. More exposed Banks could
eventually become 100 percent owned by our Governments. As debts mount, and the
banking system is reformed.

Governments in the long-term claim these toxic Banks will be eventually privatized once
they are downsized, and profitable sections of these banks are sold off. This depends on
an economic recovery, as our Governments technically bought these Banks according to
the current share value.Once the share value increases, and exceeds the original price
technically these shares could be sold at a profit, bringing in extra revenue to our
Governments.In theory this has happened in the past, Indonesia is an example:

After the Asian Crisis of 1998, Indonesia had hundreds of exposed National Banks, that
were either merged or taken over by the Government. These Banks were reformed, as
local Banking laws governing Banks were. Then many were sold off at a profit to the
Government, through the local Stock market.The irony of these Banking reforms were
that the Banking giants that are currently broke and indebted in our Countries.
Therefore Internationalizing the Banking system in Indonesia, although except in the case
of ABN Amro, no International Bank in Indonesia has collapsed or been bought out by
Government.

This action was requested by the IMF that granted Indonesia billions of dollars in
emergency loans, loans the current Government are still paying off today. And is
probably the modal our Governments are hoping to emulate, in order to save our banks,
reform them and eventually sell them off at a profit.

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Chapter9
BIBLIOGRAPHY
Web site:

*www.sunmicrosystems.com

Books:

*Herbert Schildt (Complete Reference JAVA)

*Microsoft SQL Server (Study Material)

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