...Corporate Governance-Its Problems & Prospects in Banking Industry in Bangladesh Begum Ismat Ara Huq* and Mohammad Zahid Hossain Bhuiyan** Corporate Governance ensures to bring transparency, accountability and professionalism in the management system of a corporate body that enhances the credibility and acceptability to the shareholders, employees, potential investors, customers, lenders, governments and all other stakeholders. This is more true in case of Banking Industry. Since Banks deal in public money, public confidence is of outmost importance in this Industry. The study aims at finding out problems & deficiencies involved in Corporate Governance practice in Banking Industry in Bangladesh and also suggesting ways and means to remove the same in order to make the Corporate Governance practice sound and effective. In this study, both the primary and secondary data were used. The primary data relating to problems involved in Corporate Governance practice and suggestions to remove the same were collected on the basis of a questionnaire by interviewing 24 randomly selected Bank personnel such as Directors of the Board as the internal part of management and the Auditors as the external group. The secondary data were collected through an extensive literature survey on the subject. The study has identified some major problems in Corporate Governance practice in the Banking Industry of the country. The prospect of Corporate Governance practice is bright in Banking Industry in the country...
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...Corporate Governance-Its Problems & Prospects in Banking Industry in Bangladesh Begum Ismat Ara Huq* and Mohammad Zahid Hossain Bhuiyan** Corporate Governance ensures to bring transparency, accountability and professionalism in the management system of a corporate body that enhances the credibility and acceptability to the shareholders, employees, potential investors, customers, lenders, governments and all other stakeholders. This is more true in case of Banking Industry. Since Banks deal in public money, public confidence is of outmost importance in this Industry. The study aims at finding out problems & deficiencies involved in Corporate Governance practice in Banking Industry in Bangladesh and also suggesting ways and means to remove the same in order to make the Corporate Governance practice sound and effective. In this study, both the primary and secondary data were used. The primary data relating to problems involved in Corporate Governance practice and suggestions to remove the same were collected on the basis of a questionnaire by interviewing 24 randomly selected Bank personnel such as Directors of the Board as the internal part of management and the Auditors as the external group. The secondary data were collected through an extensive literature survey on the subject. The study has identified some major problems in Corporate Governance practice in the Banking Industry of the country. The prospect of Corporate Governance practice is bright in Banking Industry in the country...
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...the working environment of Islami Bank Bangladesh Limited. As the internship continued, I not only learned about the activities and operations of correspondent Bank, but also gathered some knowledge about the basic business of banking in first one month of my internship period. Islami Bank Bangladesh Limited pursues decentralized management policies and gives adequate work freedom to the employees. This result in less pressure for the workers and acts as a motivational tool for them, also gives them encouragement and inspiration to move up the ladder of success. Overall, I have experienced a very friendly and supporting environment at Islami Bank Bangladesh Limited, which gave me the pleasure and satisfaction to be a part of them for a while. While working in different departments of this branch I found each and every employee is friendly to me to cooperate. They have discussed in details about their respective tasks. I also participated with their works. So I learnt the Banking operations of three departments of IBBL: (1) General Banking (2) Investment & (3) Foreign Exchange etc. While making this report I tried to discuss the activities of the Bank regarding their different Investment-modes now performing and the activities I focused on their nature. 1.1 Origin of the Report: The report named “Diversified portfolio & Performance analysis” of Islami Bank Bangladesh Limited was offered by Islami Bank Bangladesh Limited on January 25, 2007 as a requirement...
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... 1.1 Background Bangladesh is the third largest Muslim country in the world with around 135 million populations of which 90 percent are Muslim. The people of this country are deeply committed to Islamic way of life as enshrined in the Holy Qur'an and the Sunnah. Naturally, it remains a deep cry in their hearts to fashion and design their economic lives in accordance with the percepts of Islam. The establishment of Islami Bank Bangladesh Limited on March 13, 1983, as the first of its kind in Southeast Asia, was the true reflection of this inner urge of its people. It was both a hope and a challenge to the Islam loving people of the country in general and the pioneers of the Islamic banking movement to make it a success. In the beginning there was some doubt in the minds of many people about the viability as well as the sustainability of the Islamic banking system. But the history of two decades of Islamic banking operation in Bangladesh not only removed this doubt from the minds of the people but also showed how a new banking concept based on Islamic values could so rapidly establish itself as the most modern, dynamic, and popular bank of the country. Within this short span of time the workforce of Islamic banks in Bangladesh in general and Islami Bank Bangladesh Limited, in particular, by their strong commitment and tireless effort have been able to prove the superiority of Islamic banking over conventional banking in every department of banking operations and services...
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... ISBN: 978-1-922069-19-1 Prospects of Islamic Banking in Bangladesh Md. Maruf Ullah and Md. Shahnur Azad Chowdhury In a developing country like Bangladesh, the Islamic banking system as a whole has a vital role play in the process of economic development. The study has been concentrated on “Prospect of Islamic Banking in Bangladesh”. The paper mainly emphasizes on analyzing the performance of Islamic banks and it has also identified some problems & opportunities and provided some suggestions. It has been tried to provide some information about future performance. The study also noted that there is a high demand for interest-free banking services from a segment of people in Bangladesh who have a strong desire to abide by the rules and principals set by Shariah. Along with religious requirement, economic exigencies provide a new outlook to the role of banking in promoting investment productive activities, influencing distribution of income and adding stability to the economy. Moreover, conventional banks offering Islamic banking as a parallel service are to add to their profitability, by attracting people who value the Shariah based system by enjoying the advantages of the special treatments from the Central bank. According to the survey, suitable and supportive legal framework would facilitate better growth of this sector. For a continued expansion of the Islamic Banking system, however, a number of issues that pose serious problems for Islamic banks will need to be carefully...
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...Strategic Human Resource Management Practices in Bangladesh A case study on Islami Bank Bangladesh Limited PREPARED BY |Name |ID | |Fahamida Sultana |B-101875 | |Rabeya Bashry |B-101876 | Batch : 30th Semester : 8 Course Code : 4804 Course Title : Strategic Human Resource Management [pic] DBA, IIUC, DC Date of Submission : 5th January, 2014. Strategic Human Resource Management Practices in Bangladesh A case study on Islami Bank Bangladesh Limited PREPARED BY |Name |ID | |Fahamida Sultana |B-101875 | |Rabeya Bashry |B-101876 | Batch : 30th Semester : 8 Course Teacher : Md. Ataur Rahman Course Teacher Course Code : 4804 Course Title : Strategic Human Resource Management ...
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...Markets and Institutions ULAB 12/28/2011 Department: USB Section: 01 Islamic banking system Letter of Transmittal December 28, 2011 Shahriar Kabir Lecturer Financial Markets and Institutions ULAB Subject: Request to Accept Term Paper regarding “Islamic Banking System” Dear Sir, We are very pleased to submit the term paper on “Islamic Banking System”. We were assigned to prepare and submit this term paper as the partial fulfillment of the course Financial Markets and Institutions (Course Code: Bus 421). We have tried our best to prepare this term paper perfectly. Nevertheless, this paper has been suffered by time and other resource limitation. We will be obliged, if you kindly accept this term paper. We are ready to make you clear regarding any confusion or further clarification from this term paper. Sincerely yours, Nasrin Akter (On the behalf of all the group members) Table of contain Title | Page no | Executive summary ……………………………………....……4Introduction ……………………………………..….………….5History………………………………….…………….…...........5Features of Islamic bank………………………………………..6Who follow……………………………………………………...6Who are the customers ………………………………………….6Principles of Islamic banking……………………………………6Worldwide Islamic banking ……………………………………..7Activities of Islamic Banks...
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...Responsibility in Islamic Banks of Bangladesh Quazi Sagota Samina* The evolution of Shariah based profit –loss sharing centered Islamic banking, worldwide has changed the thought of financial institutions even of the developed countries in the west. On the other hand the recognition of importance of corporate social activities in the business organizations as well as in financial institutions has accelerated the significance of Islamic banks as in Islam these CSR practice have been emphasized in different ways. Likewise the Islamic financial institutions all over the world, Islamic banks in Bangladesh are also being engaged in various social activities as a part of their responsibilities. In this study it has been tried to find out whether the Islamic Banks of Bangladesh are adhering to the prescribed forms of the CSR activities or not. This paper is mainly designed based on the CSR forms to be followed by Islamic banks as has been prescribed by Farook (2007) in his study “On Corporate Social Responsibility of Islamic Financial Institutions” under the light of Islamic Shariah. The research found compliance to the mandatory forms by the 6 full fledged sample Islamic banks in Bangladesh whereas variety in involvement in recommended forms of CSR activities by considering the scenario of banks from 2007 to 2011. The study also finds a strong positive correlation between CSR expenditure and sample banks’ deposit, loan and profitability. Keyword: Corporate social responsibility, Islamic banking...
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...Internship Report A Demand-Supply Analysis of the Islamic Banking system in Bangladesh and the role of SCB Saadiq to meet the discrepancies, if any Prepared for: Dr. Neaz Ahmed Professor Prepared by: Ivdad Ahmed Khan Mojlish Roll: 43 Batch: BBA 13th June 24, 2009 Institute of Business Administration University of Dhaka June 24, 2009 Professor G M Chowdhury Chairman Internship & Placement Program Institute of Business Administration (IBA) University of Dhaka Subject: Submission of Internship report Dear Sir: I am very pleased to submit my Internship report on "A Demand-Supply Analysis of the Islamic Banking System in Bangladesh and the role of SCB Saadiq to meet any discrepancies, if any" for your review. This report has been prepared for Standard Chartered Saadiq under the supervision of Mr. Zia Hassan Siddique, Branch Manager SCB Saadiq. He has helped me a lot with all the support I required to complete this report. My faculty advisor was Mr. Neaz Ahmed, Professor, Institute of Business Administration, University of Dhaka, who has supervised me at every stage while carrying out this project. It was a great pleasure for me to have the opportunity to work on this project. I will be glad to clarify any discrepancy that may arise. Sincerely, Ivdad Ahmed Khan Mojlish Roll: 43, Batch: BBA 13th Institute of Business Administration University of Dhaka Acknowledgement First and foremost, I thank the Almighty Allah for letting me successfully...
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...35-52 COMPARATIVE ANALYSIS OF LOAN RECOVERY AMONG NATIONALIZED, PRIVATE AND ISLAMIC COMMERCIAL BANKS OF BANGLADESH Ezaz Ahmed Department of Management and Business BRAC University, Dhaka, Bangladesh and Ziaur Rahman IITM, Dhaka, Bangladesh and Rubina I. Ahmed Department of Business Administration East West University, Dhaka, Bangladesh ABSTRACT Bangladesh has a unique Banking system with multiple types of Banking with Nationalized Commercial Banks (NCBs), Private Commercial Banks (PCBs), Foreign Commercial Banks (FCBs), Islamic Commercial Banks (ICBs), Specialized Development Banks and the Cooperative Banks. Currently the magnitude of loan default is quite enormous in the Banking sector. However, the general perception and belief regarding the Islamic Banking is better recovery rate of loans and advances. This paper attempts to discuss the issues that govern the banking practices in Bangladesh and it also paints a picture of the lending practices followed by NCBs, PCBs and ICBs in Bangladesh. From the analysis presented in this case, it comes to light that ICBs lending practices with Islamic banking instruments mirrors the lending practices of conventional banks having synonymous counterpart products. The paper also unfolds some strategically weak links in the development of the banking sector, which has obstructed the overall economic development of the country. In this diversified Banking system, an attempt is made in the paper to analyze the issues governing the...
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...8th International Conference on Islamic Economics and Finance Prospects and Problems of Islamic Banking from Bank’s Perspective: A Study of Bangladesh Dr. Muhammad Z Mamun 1 This paper focuses on the prospect and growth potentials of Islamic banks in Bangladesh as perceived by Islamic and conventional bankers. The study noted that there is a high demand for interest-free banking services from a segment of people in Bangladesh who have a strong desire to abide by the rules and principals set by Shariah. Along with religious requirement, economic exigencies provide a new outlook to the role of banking in promoting investment/ productive activities, influencing distribution of income and adding stability to the economy. The Islamic banking sector is, however, criticized on several grounds by the Conventional bankers. The banks are believed not to apply the rules of Shariah completely. Islamic banks are said to include interest in their dealings to compete effectively with the Conventional banks. Moreover, conventional banks offering Islamic banking as a parallel service are thought to do so only to add to their profitability, by attracting people who value the Shariah based system by enjoying the advantages of the special treatments from the Central bank. According to the survey, suitable and supportive legal framework would facilitate better growth of this sector. Moreover, the lack of an inter-bank money market and sufficient supportive and link institutions in the sector, act...
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...Ahmed ID: 1410066630 Name: Shithi Samad ID: 1410566630 Name: Tanvir Hossain ID: 1320196030 Name: Lutful Kabir Sadi ID: 1220319030 Letter of Transmittal 09 December, 2014 To KH.ASEF SAFA KABIR Lecturer NSU Business School North South University Plot-15; Block-B;Basundhara,Dhaka Subject: Submission of project report on manager of AL-ARAFAH ISLAMI BANK (AIBL) Dear Sir, With due respect, we would like to submit an exclusive Report on Analytical Review of Management. The report deals with whole activities of General Banking in this Bank. We tried our level best to make the report meaningful and informative. As the time was limited, the report could not be done more comprehensively and analytical. However, we expect that you would enjoy the report. It would be very kind of you to examine our project work and give us suggestions to further enhance our skills for future prospect. Sincerely, Team: MAXIMUM SYNERGY, Section 05, School of Business (B.B.A) North South University...
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...International Journal of Islamic Financial Services Vol. 1 No.3 ISLAMIC BANKING IN BANGLADESH: PERFORMANCE, PROBLEMS & PROSPECTS Md. Abdul Awwal Sarker Islamic banks can provide efficient banking services to the nation if they are supported with appropriate banking laws, and regulations. This will help them introducing PLS modes of operations, which are very much conducive to economic development. It would be better if Islamic banks had the opportunity to work as a sole system in an economy. That would provide Islamic banking system to fully utilize its potentials. Studies show that Islamic banks can not operate with its full efficiency level if it operates under a conventional banking framework, their efficiency goes down in a number of dimensions. The deterioration is not because of Islamic bank’s own mechanical deficiencies. Rather it is the efficiency-blunt operations of the conventional banking system that puts obstructions to efficient operation of Islamic banks. This does not mean that the survival of Islamic banks operating within the conventional banking framework is altogether threatened. Evidences from Bangladesh indicate that Islamic banks can survive even within a conventional banking framework by which over from PLS to trade related modes of financing. The Genesis of Islamic Banking in Bangladesh At birth, Bangladesh inherited an interest based banking system, which was introduced here earlier when the country was a part of British Colony. Since its...
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...Banking plays an important role in the economy of any country. In Bangladesh Muslim holds the majority of the population. Though, no Islamic banking but only traditional banking system was developed here till 1983. However, interest is absolutely prohibited in Islam. The main aim of traditional banking is to earn profit by borrowing and lending money in exchange of interest. As a result there is an unfair competition among the bankers and among the customers. The people of this country are profoundly committed to Islamic way of life as enshrined in the holy Qur‟an and the Sunnah. Naturally, it remains deep in their hearts to fashion and design their economic lives in accordance with the precepts of Islam. The establishment of Islami Bank Bangladesh Limited on March 13, 1983, is the true reflection of this inner urge of its people, which started functioning with erect from March 30, 1983. Now, a question may arise- „what is Islami Banking?‟ According to OIC- “Islamic bank is a financial institution whose status, rules and procedures expressly state its commitment to the principle of Islamic Shariah and to the banning of the receipt and payment of interest on any of its operations.” This bank is the first of its kind in South-East Asia. It is committed to conduct all banking and investment activities on the basis of interest fee profit-loss sharing system. In doing so, it has unveiled a new horizon and ushered in a new silver lining of hope towards materializing a long cherished...
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...Acknowledgement All praise goes to Almighty Allah who has given me the opportunity to do this report. It is a great pleasure for me to express my sincere appreciation to the Department of Business Administration, Sylhet International University (SIU) for giving me the opportunity to do this report. I want to mention the contribution of all those who have inspired, influenced and guided me to complete this report successfully. First of all, I would like to express my heartiest gratitude to my venerable supervisor Mr Abu Syeed Muhammed Abdullah lecturer, Department of Business Administration, Sylhet International University for his kind and sincere guidance, constructive criticism and personal supervision all through my work. I am adorned with very realistic experience of all my teachers, Department of Business Administration, SIU, Sylhet who teaches good planning, perseverance and hard work are gateway to development. I am also indebted to the authority of First Security Islami Bank Limited (FSIBL) for giving me the chance for internship. Especially I convey my gratitude to Abu Zaygom Niaz Ahmed Chowdhury, VP & Branch Manager, Sylhet Branch, FSIBL, for empower me to carry out the internship in Sylhet Branch. My earnest gratefulness and respect goes to my Bank supervisor, Mohammad Arifur Rahman, Officer of FSIBL, Sylhet Branch. He assigned responsibilities to me and allowed me enough latitude to do it my own way and learn for my own self. I am grateful to the following...
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