Base Rate System

For
Non Banking Financial Institutions

Report cover page

Title page
Letter of transmittal
Acknowledgement
List of Abbreviation
Overview of Bangladesh bank
Overview of Financial institution & market department
Executive Summary

Table of Content
Chapter One
1.1) Introduction
1.2) Origin of Study
1.3) Objective of the study
1.4) Methodology of the study
1.5) Limitations of the study
Chapter two
2.1) About Base rate
2.2) Benefits of base rate system
2.3) Importance of base rate
2.4) When base rate matters
2.3) Result of ignoring base rate
2.4) Methodology and computation of base rate
Chapter three
3.1) Cost of funds
3.2) Calculation of cost of fund
3.3) Cost of funds index
Chapter four
4.1) Cost of CRR and SLR
4.2) Calculation of CRR and SLR
4.3) Difference between CRR and SLR
4.4) Bangladesh bank raises CRR to banks to curb inflation
4.5) Raising CRR: what BB gains, public loses

4.6)

BB asks banks to maintain CRR,SLR separately

Chapter five
5.1) Cost of administration
5.2) Calculation of cost of administration
5.3) Cost of equity capital
5.4) Calculation of cost of equity capital
Chapter six
6.1)
Asset pricing
6.1.1) Risk premium
6.1.2) Tenor premium
6.2)
General prpvision
6.2.1) Applicability of base rate
6.2.2) Exceptions
6.2.3) Review of base rate
6.2.4) Transitional issues
6.2.5) Effective date
Chapter seven
7.1)
BB to launch new system to fix fund shortage for banks
7.2)
Reporting
7.3)
Improving our judgments
*Conclusion
*Annexure
*References
*Appendixes