...Introduction: Banks are very old form of financial institution that channels excess fund from surplus unit to deficit unit in consideration of a price called interest. Banking business definitely established on a relationship of Debtor-creditor between the surplus unit called depositor and the bank and between the deficit unit called borrowers and the bank. Here, opportunity coast of money works as interest is considered the price of the credit. For the development of an economy, bank furnishes a huge contribution and modem economy can not be imagined without the service of bank. Economic development of a country requires a well organized, smooth, easy to reach and efficient saving-investment process. The function of a single bank is not limited to its geographical region only rather it has reached beyond the border of the country. So banking business has been shaped as global business and the rest other business greatly depend on the strength of banking business performance. The recent financial crisis showed many weaknesses within the on hand financial system across the world. This triggers many issues linking to the protection of banking institution against probable future non expected risks associated with periods of insecurity. Bank regulatory authorities are directly liable to evaluate the performance of each banking business to find out any flaw. Regulatory authority should have to sense any upcoming difficulties regarding the performance of the all banks. For that...
Words: 4612 - Pages: 19
...have also been plagued by identical loan default problems. The persistent default problems, the rapid increase in the level of outstanding loans, inefficient management, corruption among the bank officials and employees and the deterioration of customer services in the NCBs led the GOB to allow operations of private commercial banks in 1983. There has been mushroom growth of PCBs in Bangladesh during 1990s and there are now 30 PCBs, some of which are owned by the loan defaulters of the IDFIs and NCBs. The PCBs provide, apart from deposit taking activities and short term loans to borrowers. They also provide long term industrial loans to the borrowers but their long term lending activities are in no way as large as those of the NCBs. Regardless of their ownership in private hands and operational independence, PCBs suffer from a number of problems including high loan default which contributed to their failure to meet capital adequacy requirements. The amount of PCBs bad loan was Taka 41.47 billion in September 2003, and six PCBs have written off 90% of the total bad loans accrued until that time. It was reported that Pubali Bank written off Taka 1.63 billion , Uttara Bank Taka 3.24 billon, AB Bank Taka 1.32 billion, City Bank Taka 2.03 billion, Islami Bank Taka 1.35 billion and IFIC Bank Taka 2.98 billion. The PCBs are also plagued by insider lending. The directors of the PCBs not only obtain loans for their own enterprises but also get loans for their friends at low interest...
Words: 360 - Pages: 2
...com/finance.htm Financial Performance Evaluation of Some Selected Jordanian Commercial Banks Ahmed Arif Almazari Department of Administrative Sciences- Finance Section, King Saud University E-mail: aalmazari@ksu.edu.sa; ahmadarif26@hotmail.com Abstract This study attempted basically to measure the financial performance of some selected Jordanian commercial banks for the period 2005-2009. It is evaluatory in nature, drawing sources of information from secondary data. The financial performance of banks is studied on the basis of financial variables and ratios. In this paper an attempt was made to analyze the financial performance of seven selected Jordanian commercial banks using simple regression in order to estimate the impact of independent variable represented by; the bank size, asset management, and operational efficiency on dependent variablefinancial performance represented by; return on assets and interest income size. It was found that banks with higher total deposits, credits, assets, and shareholders’ equity does not always mean that has better profitability performance. It was also found that there exists a positive correlation between financial performance and asset size, asset utilization and operational efficiency, which was also confirmed with regression analysis that financial performance is greatly influenced by these independent factors. This study can be a source of help to bank managers to improve their financial performance and formulate policies that will promote...
Words: 8322 - Pages: 34
...BANKING A bank is a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital markets. A bank connects customers with capital deficits to customers with capital surpluses. Banking is generally a highly regulated industry, and government restrictions on financial activities by banks have varied over time and location. The current set of global bank capital standards is called Basel II. In some countries such as Germany, banks have historically owned major stakes in industrial corporations while in other countries such as the United States banks are prohibited from owning non-financial companies. In Japan, banks are usually the nexus of a cross-share holding entity known as the keiretsu. The oldest bank still in existence is Monte dei Paschi di Siena, headquartered in Siena, Italy, which has been operating continuously since 1472.[1] Contents • 1. History o 1.1 Origin of the word • 2. Definition • 3. Banking o 3.1 Standard activities o 3.2 Wider commercial role o 3.3 Channels o 3.4 Business model o 3.5 Products 3.5.1 Retail 3.5.2 Wholesale • 4. Risk and capital • 5. Banks in the economy o 5.1 Economic functions o 5.2 Bank crisis o 5.3 Size of global banking industry • 6. Regulation • 7. Types of banks o 7.1 Types of retail banks o 7.2 Types of investment banks o 7.3 Both combined o 7.4 Other types of banks History Banks date back to ancient times. During the 3rd century AD...
Words: 24071 - Pages: 97
...Administration Factors influencing the Profitability of Private Commercial Banks in Ethiopia Abraham Redi I.D. No. 1444/07 Section I Submitted to: Matios Ensermu (PhD) Presented as a Partial Fulfillment for the course Business Research Methodology (MGMT601) December, 2015 Addis Ababa, Ethiopia I. Table of Contents Chapter One ……………………………………………………………………………………….1 1.1 Introduction 1 1.2 Background of the Study 3 1.3 Statement of the Problem 5 1.4 Research Questions 6 1.5 Objectives of the Study 7 1.5.1 General Objective of the Study 7 1.5.2 Specific objective of the study 7 1.6 Scope and Limitation of the Study 7 1.6.1 Scope of the Study 7 1.6.2 Limitation of the Study 8 1.7 Significance of the Study 8 1.8 Operational Definitions 9 1.9 Organization of the paper 9 Chapter Two ……………………………………………………………………………………...10 2 Literature Review 10 2.1 Measures of Bank Performance/Profitability 10 2.2 Factors Influencing Bank Performance/Profitability 10 2.3 The influence of Bank-specific factors on Bank Profitability 11 2.3.1 Capital Adequacy 11 2.3.2 Assets Quality 12 2.3.3 Management Efficiency: Operational Costs Efficiency 12 2.3.4 Earning ability: Diversification of Income 13 2.3.5 Liquidity 14 2.4 The Influence of Industry-specific Factors on bank profitability 14 2.4.1 Bank Size: 14 2.4.2 Market Concentration 14 2.5 The Influence...
Words: 7237 - Pages: 29
...onset of modern industry in the country, the need for government regulated banking system was felt. The British government began to pay attention towards the need for an organised banking sector in the country and Reserve Bank of India was set up to regulate the formal banking sector in the country. But the growth of modern banking remained slow mainly due to lack of surplus capital in the Indian economic system at that point of time. Modern banking institutions came up only in big cities and industrial centres. The rural areas, representing vast majority of Indian society, remained dependent on the indigenous money lenders for their credit needs. Independence of the country heralded a new era in the growth of modern banking. Many new commercial banks came up in various parts of the country. As the modern banking network grew, the government began to realise that the banking sector was catering only to the needs of the well-to-do and the capitalists. The interests of the poorer sections as well as those of the common man were being ignored. In 1969, Indian government took a historic decision to nationalise 14 biggest private commercial banks. A few more were nationalised after a couple of years. This resulted in transferring the ownership of these banks to the State and...
Words: 24450 - Pages: 98
...Causes and Effects of Employee Turnover in Private Bank (A Case Study) Department of Business Administration Leading University, Sylhet Report On Causes and Effects of Employee Turnover in Private Bank: A Case Study Course code: BUS-322 Course Title: International Business Submitted to Syed Towfiq Mahmood Hasan Assistant Professor Department of Business Administration SUST, Sylhet, Bangladesh Submitted by Faglul Karim Raihan ID: 1001010142 Sec-C, 8th Semester (24th Batch) Department of Business Administration Leading University, Sylhet Date of Submission: September 29, 2012 ------------------------------------------------- LETTER OF SUBMISSION September 29, 2012 Syed Towfiq Mahmood Hasan Assistant Professor Department of Business Administration SUST, Sylhet, Bangladesh Subject: Letter of Submission. Dear Sir, It is an enormous pleasure to submit my report titled “Causes and Effects of Employee Turnover in Private Bank: A Case Study” assigned as a requirement of our course related. In preparing this assignment I have acquired much knowledge about employee turnover. I have tried my best to furnish the assignment with relevant data, which I had to collect from online and related journal. I hope this assignment will help the banking sector to gather some insights on the windows to do further studies in this aspect. I would like to convey my tributes to you and thank you for giving...
Words: 7747 - Pages: 31
...The Information Security Challenges and Threats of Private Banks: Evidence From Bangladesh. Submitted To: Abul Khayer Lecturer Department of International Business University of Dhaka Submitted By: Raju Ahmed (Id no. 5) Lima Nath (Id no. 19) Tanzin Ara (Id no. 26) Zuairiyah Mouli (Id no. 43) Syed Arman Ali (Id no. 57) Department of International Business (3rd Batch) University of Dhaka Letter of Transmittal 3rd november, 2013 Abul khayer Lecturer Department of International Business University of Dhaka Sir, This is to inform you that the report on “The information security challenges and threats of private Banks: evidence from Bangladesh” that you assigned us to prepare has been submitted already. We have tried our best to disscuss the findings. Hope our report will fulfill the purpose and encourage us to do further. We express our gratitude to you for your guidance and we hope that this report will fulfill your requirements. Any short of suggestion regarding this report will be greatly acknowledged and we will feel proud if our paper serves its purpose. Sincerely Yours, Raju Ahmed (Id no. 5) Lima Nath (Id no. 19) Tanzin Ara (Id no. 26) Zuairiyah Mouli (Id no. 43) Syed Arman Ali (Id no. 57) Department of International Business (3rd Batch) University of Dhaka Table of Contents Abstract 4 Executive summary 5 1. Introduction 6 2. Literature Review 7 3. Research Objectives 9 4. Methodology...
Words: 5178 - Pages: 21
...No. 2; July 2011 Published by Sciedu Press 61 Determinants of Commercial Banks’ Lending Behavior in Nigeria Felicia Omowunmi Olokoyo Department of Finance, School of Business, College of Development Studies, Covenant University Ota, Ogun State, Nigeria Tel: +234-802-394-8641 Email: felicitymy79@gmail.com Received: January 20, 2011 Accepted: March 30, 2011 doi:10.5430/ijfr.v2n2p61 Abstract This study investigated the determinants of commercial banks’ lending behaviour in the Nigerian context. The study aimed to test and confirm the effectiveness of the common determinants of commercial banks lending behaviour and how it affects the lending behaviour of commercial banks in Nigeria. The model used is estimated using Nigerian commercial banks loan advance (LOA) and other determinants or variables such as their volume of deposits (Vd), their investment portfolio (Ip), interest (lending) rate (Ir), stipulated cash reserve requirements ratio (Rr) and their liquidity ratio (Lr) for the period; 1980 – 2005. The model hypothesizes that there is functional relationship between the dependent variable and the specified independent variables. From the regression analysis, the model was found to be significant and its estimators turned out as expected and it was discovered that commercial banks deposits have the greatest impacts on their lending behaviour. The study then suggests that commercial banks should focus on mobilizing more deposits as this will enhance their lending...
Words: 8220 - Pages: 33
...A Stochastic Approach to Indian Banking Sector : Technical Analysis of Private Sector Banks Dr. Rahul Rajan Abhilasha Srivastava Abstract The objective of this paper is to present a method for estimating the cost efficiency of Indian banks in order to study the degree of technical and cost performance of the Indian banking sector and to analyze how the banking sector has been affected by technical efficiency and cost efficiency. Initially, the evolution in the technical front in the banks between 2005 to 2012 is measured. For this analysis purpose a sample of 101 Indian banks including 28 public ,29 private and 44 foreign banks operating in India is taken for the period 2005-2012. For analysis purpose both the parametric method of productive efficiency frontier (Stochastic Frontier Analysis ) and nonparametric method (Data Envelopment Analysis) are taken. Introduction The financial system is the lifeline of the economy. The changes in the economy get mirrored in the performance of the financial system, more so of the banking industry. The banking system in India is significantly different from that of other Asian nations because of the country’s unique geographic, social, and economic characteristics. India has a large population and land size, a diverse culture, and extreme disparities in income, which are marked among its regions. There are high levels of illiteracy among a large percentage of its population but, at the same time, the country has a large reservoir...
Words: 5433 - Pages: 22
...Assignment on CSR Practices in Private Banks Submitted to Mr. S. S. M. Sadrul Huda Assistant Professor Business Administration Submitted by Name ID Md. Amir Khan 2012-1-10-206 Farjana Afrin 2012-1-10-203 Shuvro Protim Chondro 2010-3-10-087 MD Towfique Alahy 2012-2-30-049 Mahmuda Akter 2013-1-10-268 Table of Content Abstract This paper examines peoples understanding, services, expectations and assessment of the corporate social responsibility (CSR) of private banks, especially Dutch-Bangla Bank Ltd, Prime Bank, Unite Commercial Bank, Premier Bank, BRAC Bank are the largest private banks in Bangladesh. This study has been conducted among the stakeholders and beneficiaries of these private Bank Limited. An interview has been conducted using structured questionnaires to critically examine the subjective perceptions of the meaning, reasons and various aspects of CSR tasks of in Bangladesh. It has been found out that common people either do not have clear understanding about CSR activities or are not really concerned about the social responsibilities of the corporate organizations. The expected outcome of CSR activities, as has been stated in the memorandum and commitments of the corporate houses, has yet to be achieved. This study suggests that a more comprehensive and humane involvement of the common people in the CSR activities is required, which would not only fulfill the intended goals and objectives of the private banks but also ensure a successful...
Words: 7200 - Pages: 29
...1.0 INTRODUCTION The commercial banking system dominates Bangladesh's financial sector. Bangladesh Bank is the Central Bank of Bangladesh and the chief regulatory authority in the sector. There are a total of 51 banks in Bangladesh, and this banking system is composed of four state-owned commercial banks, five specialized development banks, thirty eight private commercial Banks and nine foreign commercial banks. Hence we can easily say that the private commercial banks (PCBs) comprise for the largest portion of the banking sector. The banking sector has attracted a lot of fresh graduates for a very long time because of their work environment and other facilities that they provide. Moreover, the work environment and culture of the private commercial banks are such that the employees are motivated to work and prove themselves to their employers. One such approach made by PCBs was to offer a higher post to the young, newly hired graduates as they believed that this would help to increase employee satisfaction. This strategy has by many means been successful as well as a little unsuccessful for the banks. The overall study shows that simply hiring employees in higher posts cannot increase their overall job satisfaction; rather, a lot of other factors also need to be considered in order to ensure the satisfaction of the employees. 2.0 OBJECTIVE The main objective of this paper is to show how much effective the attempt was made by the owners of the PCBs to increase employee...
Words: 4155 - Pages: 17
...Journal of Public Administration and Governance ISSN 2161-7104 2012, Vol. 2, No. 1 Corporate Social Responsibility of Private Banks in Bangladesh: Expectations, Achievements and Challenges Md. Fouad Hossain Sarker Lecturer Faculty of Science & Information Technology Daffodil International University Dhaka-1207, Bangladesh Tel: +88 01554336014 Received: February 27, 2012 E-mail: fouadsarker@yahoo.com Accepted: April 16, 2012 DOI: 10.5296/jpag.v2i1.1583 Abstract This paper examines people‟s understanding, expectations and assessment of the corporate social responsibility (CSR) of private banks, especially Dutch-Bangla Bank Ltd. (DBBL), one of the largest private banks in Bangladesh. This study has been conducted among the stakeholders and beneficiaries of the Dutch Bangla Bank Limited. Surveys have been conducted using structured questionnaires to critically examine the subjective perceptions of the meaning, reasons and various aspects of CSR tasks of DBBL in Bangladesh. It has been found out that common people either do not have clear understanding about CSR activities or are not really concerned about the social responsibilities of the corporate organizations. The expected outcome of CSR activities, as has been stated in the memorandum and commitments of the corporate houses, has yet to be achieved. This study suggests that a more comprehensive and humane involvement of the common people in the CSR activities is required, which would not...
Words: 4406 - Pages: 18
...McKinsey Banking Practice McKinsey Private Banking Survey 2012 Finding a new footing July 2012 Contents 05 Introduction 19 06 12 Middle East: Attractive but increasingly competitive Western Europe: Fighting for sustainable profits 21 Priorities for finding a new footing North America: Expanding profitability, but no growth 26 27 Disclaimer 16 Authors Asia: Growing fast but at a cost McKinsey Private Banking Survey 2012 Finding a new footing 5 Introduction Private banking may be one of the most attractive segments within financial services in 1 terms of profitability, but it has not emerged unscathed from 4 years of financial crisis. Not only did the crisis hit the economics of the industry by slowing net inflows and squeezing margins, it has also led to structural changes. Following a difficult year in 2009, when net inflows in developed markets were negligible and margins and profits hit record lows, a modest improvement was seen in 2010. It seemed at first that this recovery would continue in 2011. But, after a good start, the industry suffered from a difficult second half: markets fell and profits stagnated at low levels. The situation has not yet improved in 2012; another good start was wiped out in the second quarter. Given the continued growth in global wealth, this implies that private banks are failing to capture their fair share of the market. The longer-term structural changes caused by the crisis are creating...
Words: 9308 - Pages: 38
... Word Count – 2605 Not including Executive Summary and Calculations Executive Summary Westpac Private Bank aims to provide exceptional banking services to a select group of High Net worth clients. Within Westpac Private Bank’s supply chain, a continual balance has to be maintained between easy and quick transactions, while security for both the client and the bank are maintained at the highest possible level. This report will look at the supply chain management of completing service requests for clients, and make several recommendations in which to improve the processes for client services within Westpac Private Bank. Table of Contents * 1.1 Overview of Westpac Private Bank 5 * 1.2 Account Service Process within Private Bank 7 * 2.0 Analysis of the Process 9 * 3.0 Recommendation of Key Improvements 12 * 3.1 Implementation of Recommended Improvements 16 * 4.0 Conclusion 19 * 5.0 References 20 * 6.0 Appendix ...
Words: 2839 - Pages: 12
