Financial Health Soundness Measurement of Private Commercial Banks in Bangladesh
Financial Health Soundness Measurement of Private Commercial Banks in Bangladesh

Author: Mohammad Uddin

Publisher:

Published: 2016

Total Pages: 17

ISBN-13:

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The financial sector is one of the most significant sectors for any country, especially if a country is a developing in nature. In such an environment, banking sector plays the vital role to strengthen the economic conditions. Economic growth and international business is increasing in Bangladesh and private commercial banks especially private sectors play the major roles. Thus it becomes important to measure the financial soundness of the private banks in order to judge their respective position. The study was conducted to measure the financial soundness of selected private commercial banks of Bangladesh for the period 2006-2010. In this paper, an attempt was made to analyze the financial soundness of selected banks using different statistical tools and financial indicators. The study reveals that different financial indicators showed upward trends during the period 2006 to 2010. The study also made a rank of the selected commercial banks based on financial indicators. It was found that a bank with higher deposits, loans & advances, investments, branches, employees does not always mean that has better profitability performance. The study also recommends measures that could be adopted by banks to ensure soundness in their operation.

Financial Soundness Measurement and Trend Analysis of Commercial Banks in Bangladesh
Financial Soundness Measurement and Trend Analysis of Commercial Banks in Bangladesh

Author: PhD Masud (Md. Abdul Kaium)

Publisher:

Published: 2016

Total Pages: 26

ISBN-13:

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The financial sector is one of the most significant sectors for any country, especially if a country is a developing in nature. In such an environment, banking sector plays the vital role to strengthen the economic conditions. Economic growth and international business is increasing in Bangladesh and commercial banks especially private sectors play the major roles. Thus it becomes important to measure the financial soundness of the private banks in order to judge their respective position. The study was conducted to measure the financial soundness of selected private commercial banks of Bangladesh for the period 2006 to 2014. In this paper, an attempt was made to analyze the financial soundness and trend analysis of selected banks using different statistical tools and financial indicators. The study reveals that different financial indicators showed upward trends during the period 2006 to 2014. The study also made a rank of the selected commercial banks based on financial indicators. It was found that a bank with higher deposits, loans & advances, investments, branches, employees does not always mean that has better profitability performance. The research focused on general financial situation (Deposit, Loans & Advances, investment, income, ROA, ROE) forecasting through trend analysis of the historical data available from 2006 to 2014. The analysis also recommends measures that could be adopted by banks to ensure soundness in their operation.

Financial Soundness Indicators for Financial Sector Stability in Bangladesh
Financial Soundness Indicators for Financial Sector Stability in Bangladesh

Author: Selim Raihan

Publisher: Asian Development Bank

Published: 2015-09-01

Total Pages: 94

ISBN-13: 9292570846

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Financial soundness indicators (FSIs) are compiled to monitor the health and soundness of financial institutions and markets, and of their corporate and household counterparts. With support from the Investment Climate Facilitation Fund under the Regional Cooperation and Integration Financing Facility, this report describes the development of FSIs for Bangladesh and analyzes FSIs to identify key challenges to financial sector stability in the country. A large number of FSIs are not yet available for Bangladesh, notably outside the formal banking sector including nonbank financial institutions, insurance companies, and microfinance institutions. Another key challenge for Bangladesh is the improvement of coverage, frequency, timeliness, and quality of FSIs and to make them more available to a wider audience.

Financial Soundness Indicators for Financial Sector Stability
Financial Soundness Indicators for Financial Sector Stability

Author: Asian Development Bank

Publisher: Asian Development Bank

Published: 2015-09-01

Total Pages: 132

ISBN-13: 9292570862

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The development and analysis of financial soundness indicators help policy makers identify the strengths and vulnerabilities in their countries' financial systems and take preventive action to avert a crisis or at least minimize its effects. This publication presents the country-case studies for Bangladesh, Georgia, and Viet Nam focusing on the growing evidences in the development of financial soundness indicators to effectively monitor the financial performance of the country. With the support from Investment Climate Facilitation Fund under the Regional Cooperation and Integration Financing Facility, the tales of three countries shows the diverse financial vulnerabilities of each economy. For example, Georgia and Viet Nam have met capital adequacy standards but Bangladesh has faltered in this aspect for it requires an injection of capital into state-owned commercial banks that is contingent upon improved governance. On the other hand, Georgia and Viet Nam could have been more susceptible to global economic crises than Bangladesh. A significant amount of public and private debt in Georgia is denominated in foreign currency while Viet Nam's economic openness---largely because of rapid economic integration in East Asia---has made it vulnerable to global economic slowdowns.

Bangladesh
Bangladesh

Author: International Monetary Fund

Publisher: International Monetary Fund

Published: 1999-01-07

Total Pages: 70

ISBN-13: 1451804059

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This Selected Issues paper analyzes the reforms in the energy sector in Bangladesh. It assesses the fiscal position of Bangladesh and examines its fiscal sustainability using a simple measure based on the debt dynamics. It concludes that although Bangladesh has so far maintained its sustainability mainly owing to the large portion of foreign financing with highly concessional interest rates, the potential fiscal burdens related to the structural problems in the banking sector and state-owned enterprises might threaten sustainability.

A Comparative Study of Financial Performance of Banking Sector in Bangladesh - An Application of CAMELS Rating System
A Comparative Study of Financial Performance of Banking Sector in Bangladesh - An Application of CAMELS Rating System

Author: Nimalathasan Balasundaram

Publisher:

Published: 2012

Total Pages: 0

ISBN-13:

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The Banking sector in Bangladesh is different from the banking as seen in other developed countries. This is one of the Major service sectors in Bangladesh economy, which divided into four categories of scheduled Banks. These are nationalized commercial Banks (NCBs), Government Owned Development Financial Institutions (DFIs), Private commercial Banks (PCBs), and Foreign Commercial Banks (FCBs). Performance of financial Institution is generally measured by applying quantitative techniques of financial measurement. It is a post - mortem examination techniques of achievement of a bank. Many Studies are conducted in different countries to judge the performance of their banking system using different statistical methods such as Data Envelopment Analysis (DEA) and the Stochastic Frontier Approach (SFA). The present Study is initiated a Comparative Study of Financial Performance of Banking Sector in Bangladesh using CAMELS rating system with 6562 Branches of 48 Banks in Bangladesh from Financial year 1999-2006. CAMELS rating system basically quantitative technique, is widely used for measuring performance of banks in Bangladesh. Accordingly CAMELS rating system shows that 03 banks was 01 or Strong, 31 banks were rated 02 or satisfactory, rating of 07 banks was 03 or Fair, 05 banks were rated 04 or Marginal and 02 banks got 05 or unsatisfactorily rating.01 NCB had unsatisfactorily rating and other 03 NCBs had marginal rating.

Creating a More Efficient Financial System
Creating a More Efficient Financial System

Author: Thorsten Beck

Publisher: World Bank Publications

Published: 2006

Total Pages: 61

ISBN-13:

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"While Bangladesh has embarked on a path to reform its financial system, most prominently by privatizing its government-owned banks, the Nationalized Commercial Banks (NCBs), a sustainable long-term expansion of the financial system requires a more substantial change in the role of government. Using recent research and international comparisons, this paper argues that the government should move from its role as an operator and arbiter in the financial system to a facilitator role. This implies not only divestment from government-owned banks, but also de-politicization of the licensing process and a market-based bank failure resolution framework that focuses on intermediation and not on the rescue of individual institutions. Most important, the government should move away from the implicit guarantee for depositors and owners to applying the existing limited explicit deposit insurance for depositors, while simultaneously relying more on market participants to monitor and discipline banks instead of micro-managing financial institutions. This redefinition of government's role should not be limited to the banking system, but applies to other segments of the financial system, such as capital markets and the micro-finance sector, and should be seen as an essential element in the governance reform agenda and in the movement from a relationship-based economy to a market and arms-length economy. "--World Bank web site.

Impact of Basel II Implementation on the Financial Performance of Private Commercial Banks of Bangladesh
Impact of Basel II Implementation on the Financial Performance of Private Commercial Banks of Bangladesh

Author: Sarwar Uddin Ahmed

Publisher:

Published: 2019

Total Pages: 12

ISBN-13:

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To ensure financial stability and development, capital adequacy framework of financial institutes is an integral part for global business. In recent times, BASEL-II has been implemented globally and its outcome has been constructive for financial institutions. Considering the current condition of financial institution of Bangladesh it has become important for Bangladesh to implement BASEL-II adequately to get sound financial performance. Accordingly, this study aimed to explore to what extent the capital control endeavor influences the financial performance of the banks in Bangladesh. To investigate, this article explores relevant secondary data of 25 listed private commercial banks (out of 30) in Bangladesh for the time horizon of 5 years (2008-2012). Particularly, the article used multivariate panel OLS regression model where financial performance or profitability of commercial banks was measured in terms of relevant influencing variables (e.g. asset turnover, size of the firm, capital adequacy ratios). The result shows that the capital adequacy requirement might have a positive impact on the profitability of the commercial banks in Bangladesh.

Financial Soundness Indicators
Financial Soundness Indicators

Author: International Monetary Fund

Publisher: International Monetary Fund

Published: 2006-04-04

Total Pages: 302

ISBN-13: 1589063856

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Financial Soundness Indicators (FSIs) are measures that indicate the current financial health and soundness of a country's financial institutions, and their corporate and household counterparts. FSIs include both aggregated individual institution data and indicators that are representative of the markets in which the financial institutions operate. FSIs are calculated and disseminated for the purpose of supporting macroprudential analysis--the assessment and surveillance of the strengths and vulnerabilities of financial systems--with a view to strengthening financial stability and limiting the likelihood of financial crises. Financial Soundness Indicators: Compilation Guide is intended to give guidance on the concepts, sources, and compilation and dissemination techniques underlying FSIs; to encourage the use and cross-country comparison of these data; and, thereby, to support national and international surveillance of financial systems.

Banks in Distress
Banks in Distress

Author: International Monetary Fund

Publisher: International Monetary Fund

Published: 1990-09-01

Total Pages: 34

ISBN-13: 1451954972

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This paper describes the situation of bank distress which developed in Bangladesh since 1983-84. Since the key problem banks are state-owned, there has been no banking crisis, although costs to the economy have been high. Main causes of distress included preferential and directed lending, and administered interest rates. Inadequate supervision and managerial weaknesses were other contributory factors. Macroeconomic trends played a small role only. The authorities have recently taken major corrective measures. The paper calls for determination in the implementation of these measures to swiftly restore financial stability and limit the overall cost of this long-running distress situation.