...INSTITUTE OF DEVELOPING ECONOMIES IDE Discussion Papers are preliminary materials circulated to stimulate discussions and critical comments IDE DISCUSSION PAPER No. 256 Performance of Financial Institutions in Bhutan Dil Bahadur Rahut* Iván Velásquez Castellanos** Pravakar Sahoo*** Abstract The Kingdom of Bhutan is a small landlocked country in South Asia, located in the eastern Himalayas, and bordered by India and China. Bhutan is a small and fragile economy with a population of about 687,000. Nevertheless, its banking system plays an essential role in the growth and development of the country. This paper analyzes the financial performance, the development and growth of bank and non-bank financial institutions of Bhutan for the period 19992008 using both traditional and data envelopment analysis (DEA). The DEA analysis shows that financial institutions in are efficient and Bhutan National Bank has been the most efficient one. Overall, the paper finds that the ROE of the financial institutions in Bhutan are comparable to the international banks. Key words: Financial institution, performance, loan, deposit, net income, Bhutan. JEL Classification: G20; G21; G28; O16 *Chief, Research, Planning and Monitoring Department, Bank of Bhutan, Bhutan. Email: dilbhutan@yahoo.com **Bolivia Country Programme Coordinator, Konrad Adenauer Stiftung (KAS). Email: velasquezivanomar@yahoo.com ***Associate Professor, Institute of Economic Growth, New Delhi, India and Visiting ...
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...immovable property other than agricultural or plantation property or farm house to: a) A person resident outside India who is a citizen of India or b) A person of Indian origin resident outside India or c) A person resident in India. He may transfer agricultural land/ plantation property / farm house acquired by way of inheritance, only to Indian citizens permanently residing in India. Payment for acquisition of property can be made out of: i. Funds received in India through normal banking channels by way of inward remittance from any place of India or ii. Funds held in any non-resident account maintained in accordance with the provisions of the Foreign Exchange Management Act, 1999 and the regulations made by Reserve Bank Of India from time to time. Such payment can not be made either by traveller’s cheque or by foreign currency notes or by other mode than those specially mentioned above. A person resident outside India who is a person of Indian Origin (PIO) can acquire any immovable property in India other than agricultural land / farm house / plantation property:i. By way of purchase out of funds received by way of inward remittance through normal banking channels or by debit to his NRE/ FCNR(B)/ NRO account. ii. By way of gift from a person resident in India or a NRI or a PIO. By way of inheritance from any a person resident in India or a person resident outside India who had acquired such property in accordance with the provisions of the...
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...‘BANK OF BHUTAN LIMITED, AN INTERNAL SCANNING STRATEGY’ CHAPTER ONE: INTRODUCTION 1.1. Introduction Bank of Bhutan Limited was incorporated by Royal Charter, 1986 and is now incorporated under the Companies Act of Kingdom of Bhutan 2000 and Financial Institution Act of Kingdom of Bhutan, 1992. The Bank was established as the public sector commercial bank until the establishment of the Royal Monetary Authority of Bhutan. Until then they served the function of central bank in the Bhutan. The Royal Monetary Authority of Bhutan is the Central Bank of Bhutan, which was established in 1982 and is responsible for the regulating the financial sector and formulating the monetary policies in Bhutan. Bank of Bhutan started with only 20 account holders and currently has about 150,000 accounts. The bank was established with a paid-up capital of Nu 2.5 million. Though the bank was established in May 1968, due to non-convertibility of the local currency the desired pace of growth could not be achieved. Consequently, in 1971, a team of banking experts from India and the representatives from Royal Government of Bhutan recommended for collaboration with the State Bank of India (SBI). SBI was identified as partner in management and share holding. Accordingly, Bank of Bhutan was reconstituted under the Royal Charter of bank of Bhutan (1972) inducting State bank of India as partner in capital (in the ratio of 60:40) and the management of Bank of Bhutan. The SBI share in Bank of Bhutan was reduced...
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...access today. 85% of these households are in rural areas and find it geographically challenging to benefit from grid-connected electricity for power supply. In the developing countries, rural areas mainly rely on inconvenient non-commercial resources like wood, agricultural residues etc. as sources of power generation. Hence, Off-Grid power, which can be generated on-site from renewable energy sources such as solar, wind and biomass, plays a major role for the future of rural electrification world-wide. To achieve universal access of electricity, International Energy Agency (IEA) estimates that by 2030 about 171 TWh of Off-Grid electricity will need to be generated for providing power to approximately 210M or 20% of total rural households. This paper focuses on understanding the implementation and impact of three Off-Grid renewable energy systems in three different developing countries. Two of them are successfully implemented and the other is currently under implementation. The fully implemented Off-Grid systems selected for this paper are “Off-Grid Rural Electrification-Ladakh” in India and “Off grid Solar Power System for a rural village” in Malaysia. The system that is currently being implemented is the “Rural Renewable Energy Development Project” in Bhutan. These projects have been selected based on their significant contributions to rural electrification in their respective countries. 1. Introduction: According to the United Nations Global Initiative “Sustainable Energy...
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...Bangladesh Bangladesh is important to world energy markets because of its large potential natural gas reserves. Bangladesh's location near India, plus southeast Asia, also makes it a potentially important regional energy trading hub. Note: information contained in this report is the best available as of February 2002 and can change. GENERAL BACKGROUND Bangladesh has received more than $30 billion in disbursed grant aid and loans from foreign donors (including the World Bank, the Asian Development Bank, the U.N. Development Program, the United States, Japan, Saudi Arabia, and Western Europe) since its independence in 1971, but remains one of the poorest and most densely populated countries in the world. Bangladesh historically has run a large trade deficit, which it finances largely through foreign aid and remittances from the many Bangladeshi workers abroad (largely in the Persian Gulf region). Overall, foreign aid provides Bangladesh with around 40% of government revenues and 50% of foreign exchange. The World Trade Organization (WTO) has stated that Bangladesh's main problems include civil unrest and political instability, natural disasters, and inadequate infrastructure. Bangladesh is primarily agricultural (around two-thirds of the labor force and 35% of the gross domestic product -- GDP), although urbanization is proceeding rapidly. This heavy reliance on agriculture makes Bangladesh vulnerable to natural disasters such as cyclones, floods, and droughts, as well...
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...Financial institutions in the Asia pacific region are doing exactly the same. Financial institutions like large retail banks (e.g. Barclays, Citi NA), segmented financial institutions like micro finance institutions are providing financial services to the people of that region. Apart from this there are several insurance companies who are operating their business in that region, ensuring the minimal risks of the business organizations of this region (Kumbhakar, Lozano-Vivas, Lovell, & Hasan, 1999). On the other hand a large of money is being flown through these organizations as remittance to the people and to the nations as well. This adding to the economic condition of those nations and the living of the people as well. Moreover, these type of financial institutions are providing world class banking services to the people of that region. Influenced by the success of these financial institutions several other local institutions are furnishing themselves for providing better services to the clients and getting market share from their counterparts (Kumbhakar, Lozano-Vivas, Lovell, & Hasan, 1999). It is worth denying to say that the standards that are being followed by the foreign financial institutions are setting example to the local companies as well. Inspired to this several local companies are now flourished in this region (e.g. HSBC, Commercial Bank of Ceylon of Srilanka, ICBC of China etc.). Objectives The research if going to analyze the performance of the financial...
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...Legal Environment of Business in Bangladesh A Report On “Legal Environment of Business in Bangladesh” Course Title Legal Environment of Business Course Code LAW-234 Submitted to Abeer Khandker Lecturer Faculty of Business Administration ASA University Bangladesh Submitted by Name ID Hosnain Ahmed 092-12-0002 Riyadh Ahmed 092-12-0003 Mahmudul Hassan 092-12-0006 Tasmia Kamal 092-12-0017 Nafisa Halim 092-12-0021 Sanjida Akter 092-12-0024 Habiba Sultana 081-12-0220 Date of Submission: 20th April, 2011 Table of Contents Introduction 4 Legal Procedures to Starting a Business 5 Banking Companies 5 Financial Institutions 6 Legal Procedures to Continue a Business 7 Financial Institutions 7 Other Companies 9 Dealing with licenses 9 Employing workers 10 Registering property 10 Getting credit 11 Paying taxes 12 Protecting investors 13 Trading across borders 13 Enforcing contracts 14 Legal Procedures to Ending a Business 16 Banking Company 17 Financial Institutions 25 Summary of Indicators - Bangladesh 27 Conclusion 29 Reference 30 Introduction The Legal Environment of Business commences with the systems approach to management and an analysis of the relationship between law and ethics. The first module reviews the foundations...
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...Introduction State Bank of India From Wikipedia, the free encyclopedia Jump to: navigation, search State Bank of India | | Type | Public | Traded as | NSE: SBIN BSE: 500112 LSE: SBID BSE SENSEX Constituent CNX Nifty Constituent | Industry | Banking, Financial Services | Founded | 2 June 1806 | Headquarters | Mumbai, Maharashtra, India | Area served | Worldwide | Key people | Arundhati Bhattacharya (Chairman) | Products | consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, private equity, savings, Securities, asset management, wealth management, Credit cards, | Revenue | 200560 crore (US$32 billion) (2012)[1][2] | Profit | 17916 crore (US$2.9 billion) (2013)[1][2] | Total assets | 1566261 crore (US$250 billion) (2012)[1][2] | Total equity | 98884 crore (US$16 billion) (2012)[1][2] | Owners | Government of India | Employees | 295,696 (2012)[2] | Website | www.sbi.co.in | State Bank of India (SBI) is an Indian multinational banking and financial services company. It is a government-owned corporation with its headquarters in Mumbai, Maharashtra. As of December 2013, it had assets of US$388 billion and 17,000 branches, including 190 foreign offices, making it the largest banking and financial services company in India by assets.[3][4] State Bank of India is one of the Big Four banks of India, along with ICICI Bank, Punjab National Bank and HDFC Bank. The bank traces its ancestry...
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...in agriculture, rise in the world prices of food items, sharp depreciation of taka against US dollar and especially against the Indian rupee, and rise in the prices of diesel and kerosene. These causes affect our general people directly. As per capita GDP is not responding with inflation, purchasing power of people has shrunk drastically. Food inflation is causing more problems for rural people than urban people. And loss of Taka’s value is making people go down class hierarchy. We recommend that Bangladesh Bank should take necessary steps to reduce inflation rate. We have to be concerned about devaluation of our currency. Inflation is a complex, dynamic process which cannot be comprehended simply through occasional debates or newspaper articles. Rigorous research is needed to understand inflation dynamics and its implications for monetary policy. Much of the responsibilities lay within the purview of local universities, policy institutes, and in particular the Bangladesh Bank. Table of Contents Introduction Inflation is an increase in the amount of currency in circulation, resulting in a relatively sharp and sudden fall in its value and rise in prices: it may be caused by an increase in the volume of paper money issued or of gold mined, or a relative increase in expenditures as when the supply of goods fails to meet the demand. This definition includes some of the basic economics of inflation and would seem to indicate that inflation is not defined as the increase in prices...
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...in India. Number of banks are in brackets. Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1770; both are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India in 1955. Contents [hide] * 1 History * 2 Post-Independence * 3 Nationalisation * 4 Liberalisation * 5 Adoption of banking technology * 6 Further reading * 7 References * 8 External links | [edit] History Merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank in India.(Joint Stock Bank: A company that issues stock and requires shareholders to be held liable for the company's debt) It was not the first though. That honor belongs to the Bank of Upper India, which...
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...SAARC Ministerial Declaration on Cooperation in Combating Terrorism ***** We, the Foreign Ministers of Member States of SAARC, are deeply concerned about the continuing scourge of terrorism afflicting the region which has caused extensive social disharmony, loss of human life, destruction and damage to property. Terrorism poses a serious threat to peace and cooperation, and friendly and good neighbourly relations. It jeopardises the sovereignty and the territorial integrity of States, while constituting a serious violation of fundamental human rights. We renew our commitment to strengthening comprehensive region-wide cooperation among SAARC Member States to combat and eliminate all forms and manifestations of terrorism and in this context affirm the need to reinforce further the regional legal regime and instituting pragmatic cooperation to address this issue effectively. We also recognise that our cooperation shall proceed on the basis of sovereign equality, mutual respect and the principles of non-intervention and non-interference in the internal affairs of Member States consistent with the SAARC Charter. As we meet in Colombo, at the Thirty-first Session of the Council of Ministers, we solemnly declare and agree to undertake the following measures of cooperation: 1. We reiterate our commitment to implement measures against organising, instigating, facilitating, financing, fund raising, encouraging, tolerating and providing training for or otherwise...
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...NRI’s Guide to Investment in Immovable Property and Tax Planning Rajkumar S. Adukia B.Com (Hons.), LL.B, ICWAI, FCA radukia@vsnl.com/rajkumarfca@gmail.com 093230 61049/ 093221 39642 Preface The last few years have seen tremendous growth in the real estate sector of India. Adding impetus to the growth is the liberal policy adopted by the Government of India towards foreign investment in this sector. It appears as if this is the right time for the NRIs to invest in immovable property in India. A time to make their money work at home, while they work abroad. With this book, I have made an attempt to provide answers to the problems commonly faced by a NRI who has already invested or is desirous of investing in immovable property in India. This guide is a simple primer on NRI investments in immovable property, repatriation of proceeds and tax incidences on remittances. This guide provides a detailed outlook on some standard issues in NRI investment in immovable property, repatriation and tax planning, providing non-residents guidance to investing in immovable property in the country. With a view to cover the issues of acquiring immovable property in India as well as outside India, I have divided the guide into two parts. Part A deals with acquisition of immovable property in India and Part B talks about acquisition of immovable property outside India. Part A consists of 27 chapters dealing with a host of topics right from the definition of NRI/PIO to differences between...
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...IMPORTANT GENERAL KNOWLEDGE FOR BANK RECRUITMENT TEST (PART 1) 01. The number one natural wonder of the world- Iguazu Waterfalls, Brazil 02. The country which gives Bangladesh the maximum amount of loan isJapan 03. The headquarter of world tourism organization is in- Madrid, Spain 04. The Geneva Convention deals with- conduct of war. 05. The book ‘Glimpses of World History’ was written by Jawaharlar Nehru. 06. Mother Teresa was born in – Mecidonia 07. The largest island in the world is – Greenland. 08. Naiko Gas Company belongs to the country is- Canada 09. Naigra falls is located in – North America 10. The American General who led the revolt against the British and declared American independence was- George Washington. 11. The country that accounts for nearly one third of the total teak production of the world is- Myanmar. 12. The name of statesman who received Noble prize for literary work is- Churchill. 13. Albert Einstein was born in – Germany. 14. The largest Ocean of the world is - Pacific Ocean. 15. International Rice Research Institute (IRRI) is located in – Manila, Philippines. 16. The industrial revolution was started in – England 17. ‘NASAKA’ is the border force of – Myanmar. 18. Golan Heights is a cause of discord between- Syria and Israel. 19. Name of the country, which has largest rainforest- Brazil. 20. Transfer of foreign fugitive to his home country is – Extradition. 21. The country that is called ‘the door of Europe’ is –Vienna (Austria) 22. Nelson Mandela...
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...PRESENT SCENARIO OF CERAMIC INDUSTRY The global ceramic industry is worth of US$20 billion. Bangladesh is perfectly positioned to expand rapidly in this sector with its high quality, cost ratio and creative human resource base. Traditionally, ceramic industry is a labor-intensive sector and companies in developed countries experience difficulties in remaining competitive due to rising labor cost and recent global financial crisis. Bangladesh, being a gas rich, low-labor cost economy and having advanced ‘bone china’ technology, is perfectly positioned to be a strategic partner in production and supply of ceramic goods (Board of Investment, Bangladesh). The ceramic industry is surprisingly not quite a new one in Bangladesh. It dates back to 1962. People Ceramic Industries Ltd (PCI) pioneered the manufacture of porcelain tableware in Bangladesh (Khandaker and Alamgir 2006). According to Bangladesh Ceramic Ware Manufacturers Association (BCWMA), there are approximately 40 ceramic manufacturers operating in this industry producing tableware, sanitary ware and tiles. A medium scale ceramic plant needs around Taka 10 crore (Taka 100 million) in initial investment and the BCWMA sources say the present investment in the country’s ceramic industry is roughly about Taka 2,000 crore (Taka 20 billion) and this sector employs one lakh (0.1 million) workers. Shinepukur, Monno, Bengal Fine, Standard, Peoples and National Ceramic are considered as major players in ceramic tableware market. RAK...
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...Bangladesh on its way to become a middle-income country by 2021 Essay Contents: 1. Introduction : 2. Classification of Countries and What is Meant by MIC: 3. Significance of Becoming a MIC, for Bangladesh : 4. Predictions on Bangladesh Becoming a MIC( International and National Sources ) : 5. Experience of Countries Moving from Low income to Middle Income Status : 6. Recommendations for Bangladesh to Become a MIC : 7. Becoming a MIC( Three Possible Scenarios) : 8. Conclusion : Essay Materials: sHoVoN Still a way to go for a middle-income Bangladesh Author: Fahmida Khatun, CPD Bangladesh’s recent graduation to the World Bank’s lower-middle-income category from a low-income category was only a matter of time. The country experienced steady growth in the 2000s and boosted its per capita income. Its from a mere...
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