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ID NO
Anwar Jahid
51223027
Md. Asad-uz-zaman
51223048
51324010
51324019
51428027
51324047
Amit Chaterjee
51324059
51324046
Anwar Jahid_51223027
Find out the need for new Banks in our financial system
Mission:
Vision:
Industrial Situation
Bangladesh
Investment Situation
Central banks around the world try to keep M2 GR in line with nominal
GDP GR and an optimal inflation level. In Bangladesh, Broad Money grew
12.4X in 1995-2011. In the same time period, GDP on PPP basis grew ~3X
from US$90.7bn to US$267.4bn
In 2006-2012, bank deposits (excluding inter-bank) grew at an average
19.4% per year. During the same period, total advances (excluding interbank) grew by 20.0% on an average.
In 2011, the Bangladesh Bank (BB) turned a corner and put in place a
contractionary monetary policy. Since 2011, repo and reverse repo rates
have been hiked by 225bp. Meanwhile, M2 GR which had peaked at 21.7%
in Dec10 fell to 13.7% in May12, in line contractionary targets.
Other than mopping up the excess liquidity and correction of asset prices
consequently raised BBs monetary policy has also aligned closely with
stipulations of a US$1.0bn Extended Credit Facility (ECF) loan that the
IMF approved
Inflation Rate
Inflation
The
The
Amit Chaterjee_51324059
After analysis the current macroeconomic and financial structure of Bangladesh suggest that, new
commercial bank can be accommodated in current banking industry of Bangladesh which has
good growth prospect.
Over the years, performance of the banking sector has improved significantly as has Bangladesh
Banks supervision capacity and tools:
Net NPL ratios have declined by more than two-thirds since 2004
Return on Assets has more than doubled since 2004 (from 0.69 to 1.78 averages for all banks)
Return on Equity has sharply increased from 9.7% in 2003 to 21% in 2010
BB prepared risk management guidelines to strengthening debt management and increasing the
quality of assets
BB conducted stress testing to increase the shock absorbing capacity of the banking sector
Completed Basel II implementation to increase capital of banks and has started working on the
implementation process of Basel III
While the economy has grown and the banking system has become more
competitive, 45 percent other population still remains unbanked.
The population per branch (21065) and the ratio of loan accounts per 1000
adults (42) suggests that the outreach of the formal financial sector is lower
than in India and Pakistan.
Capital infusion by these new bank will augment the banking systems
capacity to meet the credit needs of the expanding corporate sector.
The entrance of the new bank will add to the aggregate capital base of these
existing syndications, allowing for larger loans to be granted for productive
investment and job-creation.
Entry of the new banks can therefore be expected to heighten the quality of
Moreover, for new banks, the 1:1 ratio of opening rural and urban branches
will increase rural presence of banks, widening financial inclusion.
corporate bodies.
Special
instrument
Entrepreneurs.
that
may
raise
fund
for
Women
priority basis
Technology Transfer
We will focus on each and every technology to ensure automated and smooth
Make your payment faster and smoother will be our motto for technological
advancement.
All technological risk factor will also be considered while implementing our
strategy.
Security is the main force now a days for technologic advancement. We have
Areas of Operations
or approved security.
The bank issued public shares within three (3) years from the date of
commencement of the banking business (2010).
The ratio of urban and rural bank branch is 1:1 or as per instruction
issued by Bangladesh Bank from time to time.
SWOT Analysis
Strength:
Proficient Board and Directors.
Qualified and Experienced Management
Capital adequacy
Competent Human Resource
Strong Business Network.
Use of Modern technologies
Positive Mindset
Weakness
Low Brand Awareness
Low Access to Rural Market
High Cost of Fund
Intense
Competition
and
no
availability of level playing field.
New in the Industry and limited
network of branches
Opportunities
Low bank to population ratio.
Growing local entrepreneurs.
Developing Rural Market.
Large market of Foreign Remittance.
Use of modern Technologies.
Consistent GDP Growth
Threats
Political unrest and instability
Liquidity Crisis
Global Economic Recession
References
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Thank You