Financial Institution in Bangladesh

The government seems to be preparing the ground for the merger of Public Sector Banks (PSBs). After asking small banks to coordinate with large ones on key areas, it has now merged 19 Regional Rural Banks (RRBs) into eight entities, despite reservations by the Reserve Bank of India (RBI). It plans to merge more rural banks by the end of this financial year. RBI has expressed its displeasure at the move, saying the finance ministry didn't keep it in the loop while going ahead with the mergers. The ministry, however, argued it followed the Regional Rural Banks Act, which didn't mandate consultation with the Central Bank on such mergers. In the second round of consolidation of RRBs, the government has, for the first time, merged RRBs under different sponsor banks. The number of RRBs has been reduced to 71, as against 82 at the end of the last financial year. The government plans to reduce this number to 64 by March-end and to 48

In the context of mandatory registration of NBFCs with the Reserve Bank, as also consistent with the policy of bestowing greater operational freedom to banks in the matter of credit dispensation, the ceiling on bank credit linked to Net Owned Fund (NOF) of such companies has been withdrawn in respect of all NBFCs which are statutorily registered with RBI and are engaged in principal business of equipment leasing (EL), hire-purchase (HP), loan and investment activities. (RBI Notification /2004-05/14)

The investment banks, and subsequent stock brokerage firms, was regulated by the Security and Exchange Commission. The banking entities, in this portion of the financial sector, were used to dealing in high risk business that were structured on the business’ equity and debt capital, instead of the commercial banks’ deposits of customers. The activities in this sector of the financial system were underwriting stocks and bonds, insurance markets, the investments in subprime debt markets and mortgages.

In past, Schedule I Banks ought to be widely held by a large number of shareholders, originally with no investor holding more than 10% and foreign ownership was previously limited to 25%. However, these rules have been changed according to a new legislative policy framework introduced in June of 2000. Under the new rules, there are three sub-classes of banks, based on the size of their equity capital: 1) large (greater than $5 billion); 2) medium ($1 to $5 billion); and 3) small (less than $1 billion). Based on present figures, the $5 billion cut-off point would establish the top six Schedule I Banks as large banks, except the National Bank (although it would be classified as such until deemed otherwise by the Minister of Finance). The large banks have to remain widely held under new criteria that eliminate the 25% foreign ownership rule, and permit a single investor to own up to 20% of the voting shares of the bank, and up to 30% of non-voting shares, subject to a ¡°fit-and proper¡± test designed to evaluate their character and suitability. Medium banks would be allowed to have a single owner hold up to 65% of shareholdings and would be required to maintain a public float of at least 35% of voting shares. Small banks would face no ownership restrictions other than the ¡°fit and proper¡± test. Following the reform, the nationality is no longer a

National Australia Bank Group (NAB) is one of the four top banks in Australia. This bank has about 40,000 members and 1,700 branches globally. The income statement below shows the amounts in US Australian dollars from last year (2014). For further information about their balance sheet see appendix figure 1.

A Non-Banking Financial Company (NBFC) is an organization enrolled under the Companies Act, 1956 and is occupied with the matter of advances and advances, procurement of shares/stock/securities/debentures/securities issued by Government or nearby power or different securities of like attractive nature, renting, contract buy, protection business, chit business yet does exclude any foundation whose primary business is that of horticulture movement, mechanical action, deal/buy/development of unfaltering property. A non-saving money organization which is an organization and which has its key business of getting stores under any plan or course of action or whatever other way, or giving in any way is likewise a non-managing an account monetary organization (Residuary non-managing an account organization).

In this system, conventional banks make profit through the different rates of interest by borrowing and lending of money. However, one of the drawbacks of conventional banking is that it is prohibited from trading in the shareholding of the borrowing concern. (Shahid H. , et al., 2010). The performance of all the banks in the country may not necessarily be on the positive side especially since the recent financial crisis of 2007. Banks have managed to pull through but not without some being injured in terms of stock prices or profits. In 2002, the Malaysian government started the implementation of the banking sector reformation in respond to the 1997 financial crisis. Under the reform plan, Malaysian government guided the merger activities in the banking sector through the central bank. Prior to that date, the banking sector was made up of 54 domestic deposit taking institutions which became ten large-capitalized banks by the end of 2002. (Ahmad, Ariff, & Skully,

Banks are mainly regulated by the Central Bank of Sri Lanka (CBSL) - the apex financial regulator, under the Banking Act No. 30 of 1988, Monetary Law Act No. 58 of 1946 and Exchange Control Act No. 24 of 1953. Since it is mandatory for banks to be listed, regulations issued by Securities and Exchange Commission (SEC) are also directly applicable. But it is important to remember that managing regulatory risk is not limited to the regulations of CBSL and SEC, but extends to all the applicable local and international regulations such as labour laws, environmental laws, antitrust laws and tax regulations

Agrani Bank Ltd. is one of the most prominent banks of modern time in Bangladesh. It is indeed a leading commercial bank having more than 900 outlets strategically located in major of the protuberant areas in Bangladesh along with overseas exchange houses and hundreds of overseas correspondence. It has a vibrant contribution towards lending and investment in economy as it has been participating in all the sectors ranging from microfinance to industrial and commercial sector.

As on 31st March, 2003 there were 2,104 UCBs of which 56 were scheduled banks. About 79 percent of these are located in five states, - Andhra Pradesh, Gujarat, Karnataka, Maharashtra and Tamil Nadu. Recently the problems faced by a few large UCBs have highlighted some of the difficulties these banks face and policy endeavours are geared to consolidating and strengthening this sector and improving governance.

Credit risk has been the subject of considerable research interest in Banking and Financial communities, and has recently drawn the attention of statistical researchers. The exposure to credit risk continues to be the leading source of problems in the banking industry and as a result needs to be managed. Credit risk is identified as a core pillar for the viability of banks and credit institutions (Michael et al., 2011)

Trustmark National Bank is a financial institution that is comprised of various divisions offering financial services throughout the southeast region of the United States. Trustmark is publically-traded on National Association of Securities Dealers Automated Quotations (Nasdaq), has total assets over $12.6 billion, and the net income for the first quarter of 2016 was $27 million (www.trustmark.com, n. d.). While primarily recognized for the banking division, Trustmark offers mortgage, trust, and wealth management services. The primary objective of Trustmark Wealth Management (a division of the Trustmark organization since 1925) is to facilitate affluent clients with the accumulation, preservation, and transfer of wealth through various

Barings Bank was founded in 1763 and known as the oldest merchant bank in London until its collapse in 1995. The bank not only accepted deposits and provided financial services to its clients but also traded on its own account. Over the years it became quite successful and in 1980 it set up brokerage operations in Japan. Soon after, it expanded its operations to include a handful of other Asian countries and in 1992 it activated its seat on the SIMEX (Singapore International Monetary Exchange) with Nick Leeson as general manager. However, Leeson used his position to engage in both fraudulent behavior and risky speculation on futures and options, and ended up losing £1.4 billion of the funds capital, which finally caused the bank’s insolvency in 1995. Barings bank was purchased by, the Dutch bank, ING for the nominal price of £1.

The banking industry has continued its steady growth and expansion until eventually there was a need for a governing body to oversee the activities and operations of the numerous banks in the country. This led to the establishment of central bank, Bank Negara Malaysia, an

The banking sector in Bangladesh is included in the financial sector which is small and underdeveloped. Rubel and Kee (2013) stated that the well-being of an employee is not considered as a priority, so it was determined that employee engagement would be one of the ways to develop the banking sector. Transformational leadership