...Capital Adequacy of Social Islami Bank Limited By Abdur Rahman Shible ID: 0720529 An Internship Report Presented in Partial Fulfilment of the Requirement for the Degree Bachelor of Business Administration (BBA) INDEPENDENT UNIVERSITY, BANGLADESH September 2012 Social Islami Bank Limited Page 1 Capital Adequacy of Social Islami Bank Limited By Abdur Rahman Shible ID: 0720529 Has Been Approved September 2012 ______________________ Mr. Abdullah Al Aabed Lecturer School of Business Independent University, Bangladesh. September 6, 2012 Social Islami Bank Limited Page 2 LETTER OF TRANSMITTAL Date: 6th September, 2012 Mr. Abdullah Al Aabed Lecturer School Of Business Independent University, Bangladesh Subject: Submission of Internship Report Dear Sir, I am hereby submitting my Internship Report, which is a part of the BBA Program curriculum. It is a great achievement to work under your active supervision. This advance working report is based on Capital adequacy of Social Islami bank Limited. I have got the opportunity to work in Social Islami Bank Limited for twelve weeks, under the supervision of Mr. Fazle Rabbi Talukder (Assistant Officer). This project gave me both academic and practical exposures. First of all I learned about the organizational culture of a prominent bank of the country. Secondly, the project gave me the opportunity to develop a network with the corporate environment. I shall be highly obliged if you are kind enough to receive this report and provide...
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...Literature------------------------------------------------4 3.0 Banking Industry in Bangladesh---------------------------------------------------------- 3.1 What is a Bank? ----------------------------------------------------------------------5 3.2 Definitions of Bank form different view -------------------------------------5 3.3 Where does the word BANK come from? ------------------------------------6 3.4 Why Banks? Why don’t go to another financial institution? -------------7 3.5 Banking System in Bangladesh---------------------------------------------------7 3.6 Banking system is very from country to country because of Following 3 reasons---------------------------------------------------------------------12 3.7 There are different kinds of financial services firms calling themselves Banks---------------------------------------------------------------------------------------12 4.0 Major Problems Faced by Bangladeshi Banking Industry-------------------------14 4.1 Lack of Good Governance, Accountability and Transparency------------14 4.2 Low quality of asset -----------------------------------------------------------------15 4.3 Inadequacy of Effective Risk Management System--------------------------16 4.4 BASEL Slandered Implementation Problem ---------------------------------17 4.5 CAMELs rating problem-----------------------------------------------------------18 ...
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...characteristics of Banks & some of its own it brought diversification in the financial market. In the same time it witnessed impressive growth during the last years. In our country like most other industries financial institutions are also big city especially Dhaka concentrated. Financial institutions rarely spread their branches outside divisional cities let alone the urban areas. So the fierce competition among as well as across the group is strengthening. So the market segmentation, expansion and product diversification may be some key tools to get out of the situation for the FIs. But currently the industry seems to become matured with so many competitors. The recent inclusion of another two new financial institutions (Bangladesh Infrastructure Finance Fund Limited (BIFFL) & Agrani SME Financing Company Limited) in the market has increased the number of competitors at 31. From the research & provided data it is very clear that the companies are trying to strengthen their position in the market as the investment n fixed asset seems to on the rise. Besides following the stock market crash in 2010 and recent rise in the dollar price, the cost of fund has also significantly jumped. Altogether these factors are provoking the decline in the growth in income for the companies. As per Section 7 of the Banking Companies Act 1991, commercial banks also started different activities offered by financial institutions, specially leasing. Following the act, commercial banks started their...
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...ž¸¸£·¸ú¡¸ ¹£{¸¨¸Ä ¤¸ÿˆÅ ____________RESERVE BANK OF INDIA________________ www.rbi.org.in RBI/2013-14/70 DBOD.No.BP.BC.2 /21.06.201/2013-14 July 1, 2013 All Scheduled Commercial Banks (Excluding Local Area Banks and Regional Rural Banks) Madam / Sir, Master Circular – Basel III Capital Regulations Please refer to the Master Circular No.DBOD.BP.BC.16/21.06.001/2012-13 dated July 2, 2012, consolidating therein the prudential guidelines issued to banks till that date on Capital Adequacy and Market Discipline - New Capital Adequacy Framework (NCAF). 2. As you are aware, Basel III Capital Regulations is being implemented in India with effect from April 1, 2013 in a phased manner. Accordingly, instructions contained in the aforesaid Master Circular have been suitably updated / amended by incorporating relevant guidelines, issued up to June 30, 2013 and is being issued as Master Circular on ‘Basel III Capital Regulations’. 3. The Basel II guidelines as contained in the Master Circular DBOD.No.BP.BC.9/21.06.001/2013-14 dated July 1, 2013 on ‘Prudential Guidelines on Capital Adequacy and Market Discipline- New Capital Adequacy Framework (NCAF)’ may, however, be referred to during the Basel III transition period for regulatory adjustments / deductions up to March 31, 2017. Yours faithfully, (Chandan Sinha) Principal Chief General Manager Encl.: As above Department of Banking Operations and Development, Central Office, 12th Floor, Central Office Building, SBS Marg...
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...Banking Sector Performance, Regulation and Bank Supervision Chapter-5 32 other hand, PCBs' deposits in 2006 amounted to Taka 955.5 billion or 51.3 percent of the total industry deposit against Taka 731.3 billion or 47.0 percent in 2005. FCBs' deposits in 2006 rose by Taka 38.2 billion or 33.9 percent over the previous year. The DFIs' deposits in 2006 were Taka 100.2 billion against Taka 89.5 billion in 2005 showing an increase of 12.0 percent over the year. Aggregated Balance Sheet 5.4 Assets: Aggregate industry assets in 2006 registered an overall increase by 17.8 percent over 2005. During this period, NCBs' assets increased by 3.1 percent and those of the PCBs' rose by 22.9 percent. Loans and advances played a major role on the uses of fund. Loans and advances amounting to Taka 1543.6 billion out of aggregate assets of Taka 5.2 In 2006 the nationalized commercial banks (NCBs) held 32.7 percent of the total industry assets as against 37.4 percent in 2005. Evidently, NCBs' domination in this area is showing a declining trend, while PCBs' share rose to 47.7 percent in 2006 as against 45.6 percent in 2005. The foreign commercial banks held 11.8 percent of the industry assets in 2006, showing a satisfactory increase by 4.5 percentage points over the previous year. The DFIs' share of assets was 7.8 percent in 2006 against 9.7 percent in 2005. 5.3 Total deposits of the banks in 2006 rose to Taka 1860.6 billion from Taka 1554.7 billion in 2005 showing...
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...Internship Report Impact of Credit Rating on Corporate and Banking Sectors of Bangladesh A Study based on Ratings of Credit Rating Agency of Bangladesh Limited (CRAB) Exam Roll: 091127 Internship Report on Impact of Credit Rating on Corporate and Banking Sector of Bangladesh A Study based on Ratings of Credit Rating Agency of Bangladesh Ltd. (CRAB) Prepared For: Chairman Internship Placement Committee Prepared by: Exam Roll Number: 019927 Class ID: 892 4th year, 8th semester Batch Number: 18th, BBA Program Academic Session: 2008-09 Institute of Business Administration (IBA-JU) Jahangirnagar University, Savar, Dhaka 1342 Date: 16.02.2013 Letter of Transmittal February 16, 2013 Chairman Internship Placement Committee Institute of Business Administration Jahangirnagar University Savar, Dhaka 1342. Subject: Submission of Internship Report Dear Sir, It is an event of great pleasure for me to prepare and present the internship report on ‘Impact of Credit Rating on Corporate and Banking Sectors of Bangladesh: A Study based on Rating of Credit Rating Agency of Bangladesh Limited (CRAB)’ which is a requirement for the completion of BBA program. In this report I have tried to identify different aspects of the credit rating service and its impact on the corporate and banking sectors of the country. I have tried my best to organize all relevant information and do according to the instructions of preparing...
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...MANAGEMENT IN ISLAMIC FINANCIAL INSTITUTIONS DR. FEKRI ALI MOHAMMED SHAWTERI (IF70) REPORT CIMB ISLAMIC BANK BERHAD REPORTED BY: Nur Atteya Amanda binti Amirudin 62289214273 Syamimi Fatihah binti Mohd Sobri 62289214372 Nur Aizat binti Mun 62289214006 Norhafiza binti Alalguring 62289214119 Noor Rahimah binti Abdul Rauf 62289214281 TABLE OF CONTENTS NO | TOPIC | PAGES | 1.0 | Introduction | 3 | 2.0 | Bank Profile | 5 | 3.0 | Financial Analysis | 7 | 4.0 | Credit Risk | 14 | 5.0 | Liquidity Risk | 24 | 6.0 | Operational Risk | 27 | 7.0 | Market Risk | 30 | 8.0 | Shariah Risk | 34 | 9.0 | Capital Requirement | 36 | 10.0 | Conclusion | 39 | 11.0 | References | 39 | 1.0 INTRODUCTION CIMB Islamic was officially launched by Malaysia’s Bank Negara Governor Tan Sri Dato' Dr Zeti Akhtar Aziz in June 2003. Since then, CIMB Islamic has won numerous accolades for its innovative Shariah-compliant solutions. It providing the consumer market with an Islamic alternative for deposit accounts and financing. CIMB Islamic offers a range of deposit and investment products to help manage business cash flow and cash reserves more effectively such as Wadiah Current Account-I, Fixed Return Income Account-I, and Special Investment Account-I. The money will only be invested in Shariah-Compliant activities. In the context risk, risk refers to the probability of loss. Risk actually elucidates the probability that an actual return on an investment will be lower than the expected...
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...An internship report on “Credit risk management practices in Sonali Bank Ltd.” Executive Summary Sonali Bank Ltd. is the largest state owned commercial bank in Bangladesh with a total of 1203 branches. Total of 858 branch in rural and 343 branch in urban area. The functions of the bank covered a wide range of banking and functional activities to individual, firms, corporate bodies, Multinational agencies and the rural area. The bank provides more than 21 types of free services on behalf of the government of Bangladesh through its rural and urban branches as part of their commitment to society. Sonali bank Ltd. follows the rules and regulation prescribed by the Bangladesh bank. To manage credit risk, the Bank applies credit limits to its customers and obtains adequate collaterals. Credit risk in the Sonali Bank Ltd.'s portfolio is monitored, reviewed and analyzed by the Credit Risk Management (CRM). Sonali Bank Ltd. has established Asset-Liability Management Committee (ALCO) to determine the maximum risk exposure. Management is aware about guidelines of Bangladesh Bank and implemented new capital accord BASEL-II. Sonali Bank Ltd. constantly monitors, reviews and analyzes its credit portfolio to minimizing potential losses and ensuring efficient credit process. To manage the Non-Performing Loans (NPL), Sonali Bank Ltd. has a comprehensive remedial management policy, which includes a framework of controls to identify weak credits and monitoring of these accounts constantly...
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...SOUTHEAST BANK LIMITED 1.0 Introduction Information systems are essential for conducting day-to-day business in the most advanced countries in the world, as well as achieving strategic business objectives. Entire sectors of the economy are nearly inconceivable without substantial investments in information systems. E-commerce firms such as Amazon, eBay, Google, and E-Trade simply would not exist. Today’s service industries—finance, insurance and real estate, as well as personal services such as travel, medicine, and education—could not operate without information systems. Similarly, retail firms and manufacturing firms require information systems to survive and prosper. 1.1 Objective of the report The main purpose of this report is to have a clear idea about the application of information system by banking system of Bangladesh. For this reason we select Southeast Bank Limited. 1.2 Methodology and Data Collection Of the two ways of data sources (primary and secondary) we have used only secondary sources as follows: • Text books, • Investigation report, • Previous researches related to the topic, • Journals, newspaper, indices data and • Electronic sources (Internet) 1.3 Scope of the report The reader of the report will find the answer of the following questions after reading this report; ➢ What is an information system? ➢ What makes information system so essential today? ➢ How banks and financial...
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...Chapter-5 Banking Sector Performance, Regulation and Bank Supervision 5.1 Bangladesh Bank (BB) continued to focus on strengthening the financial system and improving functioning of the various segments. The broad parameters of the reforms undertaken during the year comprised ongoing deregulation of the operation of institutions within the BB's regulatory ambit, tightening of prudential regulation and improvement in supervisory oversight, expanding transparency and market disclosure, all with a view to improving overall efficiency and stability of the financial system. The following paragraphs highlight the recent regulatory and supervisory Table 5.1 Banking system structure 2006 Bank Number Number of types of banks branches SCBs DFIs PCBs FCBs Total 4 5 30 09 48 3384 1354 1776 48 6562 Total assets 786.7 187.2 1147.8 284.9 2406.7 % of industry assets 32.7 7.8 47.7 11.8 100.0 Deposits measures initiated by BB for banks and financial institutions and also the industry statistics of the banking sector and the performances trends. A. Banking Sector Performance 5.2 The banking sector of Bangladesh comprises of four categories of scheduled banks. These are state-owned commercial banks (SCBs), state-owned development finance institutions (DFIs), private commercial banks (PCBs) and foreign commercial banks (FCBs). The number of banks remained (billion Taka) 2007 % of Number Number of Total deposits of banks branches assets 35.2 5.4 51.3 8.1 100.0 4 5 30 09 48 3383 1359 1922...
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...Affecting The Bank rating Executive Summery Credit rating agencies (subsequently denoted CRAs) specialize in analyzing and evaluating the creditworthiness of corporate and sovereign issuers of debt securities. In the new financial architecture, CRAs are expected to become more important in the management of both corporate and sovereign credit risk. The logic underlying the existence of CRAs is to solve the problem of the informative asymmetry between lenders and borrowers regarding the creditworthiness of the latter. Issuers with lower credit ratings pay higher interest rates embodying larger risk premiums than higher rated issuers. Moreover, ratings determine the eligibility of debt and other financial instruments for the portfolios of certain institutional investors due to national regulations that restrict investment in speculative-grade bonds. The banking sector in Bangladesh passed through significant changes in terms of structure and policies. Starting with six nationalized commercial and a few specialized banks after independence, the total number of banks has reached 48 at present including private and foreign commercial banks. The Bangladesh financial sector is under going through a phase of transaction, transformation and convergence. The regulators are more active then ever before to bring the sector up to an international standard. The competitive environment created with the presence of too many banks in a small economy has also been forcing the banks to increase...
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...Executive summary | | Introduction | | Literature review | | Research methodology | | Sampling techniques | | Tools of analysis | | Data analysis & findings | | Conclusions | | Scope for further research | | Reference | | Executive Summary Today, The Indian Economy is in the process of becoming a world class economy. The Indian banking industry is making great advancement in terms of quality, quantity, expansion and diversification and is keeping up with the updated technology, ability, stability and thrust of a financial system, where the commercial banks play a very important role, emphasize the very special need of a strong and effective control system with extra concern for the risk involved in the business. Globalization, Liberalization and Privatization have opened up a new methods of Financial transaction where risk level is very high. In banks and financial institutions risk is considered to be the most important factor of earnings. Therefore they have to balance the Relationship between risk and return. In reality we can say that management of financial institution is nothing but a management of risk managing financial risk systematically and professionally becomes an even more important task. Rising global competition, increasing deregulation, introduction of innovative products and delivery channels have pushed risk management to the forefront of today's financial landscape. Ability to gauge the risks and take appropriate...
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...cases reduce market and portfolio volatility, facilitate cross-border capital flows, and create more opportunities for portfolio diversification. Despite rapid growth over the past several years, Emerging Market (EM) derivatives account for only about 10 percent of the total outstanding notional values in global derivatives markets. Compared to mature markets, the ratio of outstanding notional value of derivatives to market capitalization of the underlying asset markets is fairly small in most emerging economies and is mainly focused on sovereign risks. The most common issues that challenge the development of local derivatives markets are (i) relatively underdeveloped markets for the underlying assets; (ii) lack of adequate regulatory, legal and market infrastructure, and (iii) restrictions on the use of derivatives by local and foreign entities.2 The problem of misuse of derivatives is perceived to be more acute in emerging market countries where prudential regulation, credit information infrastructure, and risk management practices are not fully developed and maybe in conflict with reasonable economic, investment or portfolio objectives. This note provides a background for a discussion on policy measures to promote the benefits of derivative markets in EM countries, while acknowledging existing and forthcoming challenges. It is based on case studies of the development of derivative markets in Brazil, Chile, Hungary, India, Israel, Korea, Mexico and Poland. B. Current Stage of...
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...FACTORS AFFECTING PERFORMANCE OF COMMERCIAL BANKS IN KENYA BY MAURICE MUIRURI KAARIUKI A RESEARCH PROPOSAL SUBMITTED TO THE SCHOOL OF BUSINESS IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MASTERS IN BUSINESS ADMINISTRATION, DEGREE OF KENYATTA UNIVERSITY. JULY, 2014 DECLARATION Declaration by the Researcher This research is my original work and has not been presented for a degree in any other University. No part of this study may be reproduced without prior authority of the author and/or Kenyatta University. Signature……………………………………………………… Date………………………. Maurice Muiruri Kariuki Declaration by the Supervisor This research proposal has been submitted for examination with my approval as the university supervisor. Signature……………………………………………………… Date………………………. Name (PhD.) School of Business ACKNOWLEDGEMENT I take this opportunity to express my gratitude and regards to Professor name (PhD.) for his guidance. I am indebted to all the persons and institutions that offered support, encouragement and prayers to me during the entire research. Lastly, I thank almighty, my parents, brother, sisters and friends for their constant encouragement without which this assignment would not be possible. ABSTRACT The study seeks to investigate the factors affecting performance of commercial banks in Kenya. The Background of the study reveals that there has been continued globalization and economic cooperation among the...
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...Report On HR Department training Development of Prime Bank Prepared by: Sadia sharmin ID:12302009 Subject:ART204 Section:C Prepared For: Tanvir H Dawn Faculty of CBA College of Business Administration Submission date: 14th Nov, 2015 Letter of transmittal To Tanvir H Dawn Faculty, College of Business Administration Subject: Letter of transmittal for improving quality and productivity. Sir, It delights that we presenting our group work on improving productivity and quality of Prime Bank Ltd. It was given as task. We complete our task within the time. I, face so many problems as such as computer virus, internet accesses problem in our university lab. There are so many limitations although we can complete our task for this we group members are so grateful to authority. This is particular in nature. In case of any doubt we the people undersign on this presentation remain stand by to clarify. Thank you very much sir Name:Sadia Sharmin , ID # 12302009 Sing--------- Students Declaration I am the student of college of business administration, International University of Business Agriculture And Technology, Uttara, Dhaka 1230 declared that this was assigned to us so we try to complete it within the time. We declared that it’s our own writing; we the groups of students under signing are responsible for any...
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