1. Introduction 1.1 Origin The preparation of this report is a requirement of the course on “Management of Financial Institutions”, M. Jahangir Alam Chowdhury, Professor of Finance Department at Faculty of Business Studies, University of Dhaka, who is also the course instructor has assigned us a topics regarding “Merchants Banks in Bangladesh” where industry performance and activities are analyzed by the listed merchants banker in our country. 1.2 Background The Progress of any economy mainly depends on the efficient financial system of the country. This importance of the financial sector reforms affirms an effective means for solving the problems of economic, financial and social in the developing nations of the world. The progress …show more content…
It tends to set sight well beyond the next fiscal year, primarily to achieve the Millennium Development Goals of poverty reduction by one-half within the year 2015 and high-growth trajectory of 7% in fiscal 2011-12 and the rate rising further to 8% by fiscal 2014-15, with inflationary pressure contained at 7.5% in the next fiscal year and further down to 5% in the medium term. The vision of ‘Digital Bangladesh’ also has not been forgotten. Those are, however, lofty wishes; implementation of the same would take quite a bit of investment and time. Agriculture production and exports have posted a more than fair performance in the outgoing fiscal year but depression in the financial sector, including the money & capital markets, and continuing high inflation rates stand as hindrance in a sustainable economic growth. Decelerated growths in human resources & manpower export and remittance earning as well as decline in Foreign Direct Investment (FDI) and foreign aid inflow have created pressure on the Balance of Payment (BoP) situation. According to government data, point-to-point inflation rate was recorded at 10.67% in April 2011, with food inflation standing at 14.36%. Other agencies, however, suspect inflation is to be at a higher level than being officially acknowledged. In the developed world, budget do normally bring some relief to the people in general,
Key Words - Bancassurance, Customer Satisfaction, Performance Parameters, Public Sector Banks and Private Sector Banks.
The overall development of an economy is a major factor that has significant impacts on the development of the economy's financial markets. Since well-functioning financial systems offer good and easily accessible information, they lower the costs of transaction. This in turn enhances resource allocation and strengthens economic growth. The financial services industry consists of various systems such as stock markets and banking systems that enhance growth and help in poverty reduction. However, commercial banks tend to dominate the financial system during low levels of economic development while stock markets become more active and effective during periods of high levels of economic development ("Financial Sector", n.d.). The other important systems in the financial services industry include sound macroeconomic policies, shareholder protection, and good legal systems.
The specific issues being studied are all linked to economic growth and financial development. The authors use a certain method to help them in their research. “After considering the panel characteristics of the dataset, long-run relationships among financial development, economic growth and
All the recommendations and suggestions that will be provided by this study would be helpful for the management of the National bank and Allied bank of Pakistan, in taking decisions related to their business processes, assets management, loans and other areas. This study would be beneficial for the investors, shareholders, creditors, state bank and government, because it shows the performance of the bank. In this way Shareholders would be able to know the performance of bank, profits and also know about those factors which are not significant for success of bank. New investors will attract if study proves that bank is working excellent. Overall this study will provide comprehensive information about financial performance of National bank and Allied bank of Pakistan; through the help of this research other banks can also know about those factors which largely contribute in the enhanced financial performance of a
Banking system is the most important component in the financial system in each and every country. As well, in Sri Lanka, bank industry is the major influencing industry to Sri Lankan economy. Therefore the Sri Lankan Government has identified, it is essential to stable the financial sector in order to achieve the objective of increasing the Per Capita Income beyond US $ 4000 by 2016.
Prashanta Athma (2000), in his Ph D research submitted at Usmania University Hyderabad, “Performance of Public Sector Banks – A Case Study of State Bank of Hyderabad, made an attempt to evaluate the performance of Public Sector Commercial Banks with special emphasis on State Bank of Hyderabad. The period of the study for evaluation of performance is from 1980 to 1993-94, a little more than a decade. In this study, Athma outlined the Growth and Progress of Commercial Banking in India and. analyzed the trends in deposits, various components of profits of SBH, examined the trends in Asset structure, evaluated the level of customer satisfaction and compared the performance of SBH with other PSBs, Associate Banks of SBI and SBI. Statistical techniques
The paper overviews the banking sector reforms within the framework of the Nigerian Financial System. A theoretical approach was adopted although empirical evidence was presented in some cases. It was clear that developments in the banking sub-sector of the Nigerian financial system have contributed to some extent in promoting economic growth and development in the country. However, the operations of some of these institutions were characterized by inefficiency and ineffectiveness. It was also found that the challenges facing
In the past two decades, economic analysts and policy makers have recognized that the financial system can significantly contribute to economic growth. Observing the changes that have taken place, a result has arisen that a liberalized financial sector operating in a competitive, open environment with market-based supervision based on international norms, is the best contribution to economic development. The new market-based paradigm for the design of financial systems contrasts with earlier thinking about the appropriate role for official intervention in the financial system. In the past, financial institutions, especially banks, were considered "special" entities in which it was appropriate for governments to intervene regularly in detecting a wide range of economic and social objectives . While, in earlier times, the financial sector differentiated strongly among countries and influenced by national rules .
The financial markets are increasingly and highly interconnected, which means that the regulation of the financial services is becoming globalised as well, since most of the bigger firms operate all over the globe, the standardization of the regulation is a very common practice nowadays, making very difficult especially for developing countries keep up with the regulation. The financial crisis of 2008 was one of the most devastating and longest crises the contemporary world has seen, after the crisis a set of reforms, institutions and regulation were created, to avoid this happening again.
In this article author Alka Sharma discuss about the economic reforms that took place in Indian financial sector. This type of reforms has gaining more importance as financial intermediaries and also help in opening new opportunity for growth and development of various financial services. As a result of this new reforms there is a shift in financial services from quantitative to qualitative services. Financial institution is highly
The words ‘moneylender’, ‘borrower’, ‘debtor’, ‘creditor’ etc. are commonplace in today’s financial markets. Some other pillars for a powerful economy are stable government, dedicated workforce, the maintenance of internal peace, high GDP, successful industries etc. among others. However, one can consider the government and the financial market as the two foremost pillars on which the economic as well as overall growth of a country rests.
Unit I: Nature and Role of Financial system – Introduction; structure of financial system; Equilibrium in financial markets; financial system and economic development; Theories of Impact of Financial developments
Commercial banks have played a vital role in giving direction to economic development by catering the financial requirement of trade and industry in the country. By encouraging thrift among the people, commercial banks have fastened the process of capital formation. Banks draw the community savings into the organized sector which can then be allotted among the different economic activities according to the priorities laid down by planning authorities in the country. ‘The banks are not only the safe deposit vaults for these savings, but taking the banking system as a whole, they also create deposits in the process of their lending operations. However, the important function of a banker is the
Prepared by: Rashed Hossain ID: 092011001 Concentration: Finance School of Business University of Liberal Arts Bangladesh (ULAB)
Banking and financial sector is one of the main pillars of the development of an economy. Banking sector contribution for the