Practicing sound risk management is crucial for banking sector. Necessary instructions have been ... more Practicing sound risk management is crucial for banking sector. Necessary instructions have been issued from time to time through different circulars, guidelines and letters by Bangladesh Bank with a view to ensuring proper application of sound risk management in banks; i.e., for building the necessary infrastructure and taking various steps for identification, measurement, monitoring, and control or mitigation of various existing and potential risks; and maintaining adequate capital and provision to support risk-taking. To bring greater expertise and harmonization to risk management activities of all banks and exercise international best practices Comprehensive Risk Management for assessing risks is needed. In this case, a separate risk management division and a structure of risk management committee at management level should be prepared to be followed at a minimum in addition to the activities that banks have been followed over the years by the instructions of central bank. For stronger and timely/updated risk management activities, banks should follow the instructions given by Bangladesh Bank.
Interest rates in Bangladesh are high compared to neighboring countries. In India, the interest r... more Interest rates in Bangladesh are high compared to neighboring countries. In India, the interest rate is 9.0 per cent for industries. This rate is 8.0 to 12 per cent in Sri Lanka. It is 9.0 to 12 per cent in Pakistan. In Bangladesh, interest rate is 13 to 16 per cent and banks collect multifarious service charges which raise the cost of borrowing.
In order to stimulate rapid economic growth of the country, particularly through industrializatio... more In order to stimulate rapid economic growth of the country, particularly through industrialization, the government has adopted an 'Open Door Policy' to attract foreign investment to Bangladesh. The Bangladesh Export Processing Zones Authority (BEPZA) is the official organ of the government to promote, attract and facilitate foreign investment in the Export Processing Zones. The primary objective of an EPZ is to provide special areas where potential investors would find a congenial investment climate, free from cumbersome procedures.
Practicing sound risk management is crucial for banking sector. Necessary instructions have been ... more Practicing sound risk management is crucial for banking sector. Necessary instructions have been issued from time to time through different circulars, guidelines and letters by Bangladesh Bank with a view to ensuring proper application of sound risk management in banks; i.e., for building the necessary infrastructure and taking various steps for identification, measurement, monitoring, and control or mitigation of various existing and potential risks; and maintaining adequate capital and provision to support risk-taking. To bring greater expertise and harmonization to risk management activities of all banks and exercise international best practices Comprehensive Risk Management for assessing risks is needed. In this case, a separate risk management division and a structure of risk management committee at management level should be prepared to be followed at a minimum in addition to the activities that banks have been followed over the years by the instructions of central bank. For stronger and timely/updated risk management activities, banks should follow the instructions given by Bangladesh Bank.
Interest rates in Bangladesh are high compared to neighboring countries. In India, the interest r... more Interest rates in Bangladesh are high compared to neighboring countries. In India, the interest rate is 9.0 per cent for industries. This rate is 8.0 to 12 per cent in Sri Lanka. It is 9.0 to 12 per cent in Pakistan. In Bangladesh, interest rate is 13 to 16 per cent and banks collect multifarious service charges which raise the cost of borrowing.
In order to stimulate rapid economic growth of the country, particularly through industrializatio... more In order to stimulate rapid economic growth of the country, particularly through industrialization, the government has adopted an 'Open Door Policy' to attract foreign investment to Bangladesh. The Bangladesh Export Processing Zones Authority (BEPZA) is the official organ of the government to promote, attract and facilitate foreign investment in the Export Processing Zones. The primary objective of an EPZ is to provide special areas where potential investors would find a congenial investment climate, free from cumbersome procedures.
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