To ensure financial stability and development, capital adequacy framework of financial institutes... more To ensure financial stability and development, capital adequacy framework of financial institutes is an integral part for global business. In recent times, BASEL-II has been implemented globally and its outcome has been constructive for financial institutions. Considering the current condition of financial institution of Bangladesh it has become important for Bangladesh to implement BASEL-II adequately to get sound financial performance. Accordingly, this study aimed to explore to what extent the capital control endeavor influences the financial performance of the banks in Bangladesh. To investigate, this article explores relevant secondary data of 25 listed private commercial banks (out of 30) in Bangladesh for the time horizon of 5 years (2008-2012). Particularly, the article used multivariate panel OLS regression model where financial performance or profitability of commercial banks was measured in terms of relevant influencing variables (e.g. asset turnover, size of the firm, capital adequacy ratios). The result shows that the capital adequacy requirement might have a positive impact on the profitability of the commercial banks in Bangladesh.
Islamic banking is based on profit and loss mechanism where the use of interest is prohibited. Un... more Islamic banking is based on profit and loss mechanism where the use of interest is prohibited. Unlike conventional banks, these banks do not charge a specific rate of interest, rather provides financing in exchange for profit sharing. However, there are studies claiming that, in practice, Islamic banking is same as conventional banking with regard to the use of interest. It is also claimed that, Islamic deposits are not interest-free, but are closely attached to conventional deposits. On this background, the objective of this study is to examine the relationship between pricing in Islamic banks vis-à-vis conventional banks by taking the case of Bangladesh. We have used monthly data during the period of 2009-2013. The findings of the study showed that, there is no statistically significant difference between the monthly average lending rates of Islamic banks and conventional banks. However, there is significant difference between deposit rates. The existence of causal relationship wa...
Basel I, the initial Capital Adequacy Framework, was introduced in 1988 and the new Capital Adequ... more Basel I, the initial Capital Adequacy Framework, was introduced in 1988 and the new Capital Adequacy Framework, Basel II, was replaced it in 2004. In Bangladesh, the Bangladesh Bank, guided by the Basel II, replaced the Basel I in phases during 2009-10. According to the new rule, Bangladesh Bank requires all the relevant financial institutes to maintain a capital base that is 10% of risk weighted assets. This new stringent requirement is 2% more than that of the previous requirement, 8%. Now, the concern is to what extent the capital control endeavor influences the financial performance of the banks in Bangladesh. To answer this question, this article explores relevant secondary data of 15 listed private commercial banks (out of 30) in Bangladesh. Particularly, the article used multivariate panel OLS regression models where financial performance or profitability of commercial banks was measured in terms of relevant influencing variables (e.g. asset turnover, size of the firm, capita...
Often we observe that the third world countries always top the corruption indices compare to the ... more Often we observe that the third world countries always top the corruption indices compare to the developed West. This incident naturally leads to the question of why - Is it because the third world countries are significantly more corrupt than the developed countries? Or, is there any other reason behind this issue?--these are the questions that are explored in this article. To be more specific, this article critically explores contemporary arguments regarding inherent issues of corruption and various aspects of measurement techniques of corruption indices (e.g. definition issue, identification problem, clandestine nature of corruption, perceptual problem, validity and reliability of corruption data). Thus, by examining the innate complex nature of corruption, the article argue that, in many cases, in comparison to the developed West, corruption of developing nations may not be as deep as the corruption indices, which are also contested, accuse. In addition, the article emphasizes t...
To ensure financial stability and development, capital adequacy framework of financial institutes... more To ensure financial stability and development, capital adequacy framework of financial institutes is an integral part for global business. In recent times, BASEL-II has been implemented globally and its outcome has been constructive for financial institutions. Considering the current condition of financial institution of Bangladesh it has become important for Bangladesh to implement BASEL-II adequately to get sound financial performance. Accordingly, this study aimed to explore to what extent the capital control endeavor influences the financial performance of the banks in Bangladesh. To investigate, this article explores relevant secondary data of 25 listed private commercial banks (out of 30) in Bangladesh for the time horizon of 5 years (2008-2012). Particularly, the article used multivariate panel OLS regression model where financial performance or profitability of commercial banks was measured in terms of relevant influencing variables (e.g. asset turnover, size of the firm, capital adequacy ratios). The result shows that the capital adequacy requirement might have a positive impact on the profitability of the commercial banks in Bangladesh.
Islamic banking is based on profit and loss mechanism where the use of interest is prohibited. Un... more Islamic banking is based on profit and loss mechanism where the use of interest is prohibited. Unlike conventional banks, these banks do not charge a specific rate of interest, rather provides financing in exchange for profit sharing. However, there are studies claiming that, in practice, Islamic banking is same as conventional banking with regard to the use of interest. It is also claimed that, Islamic deposits are not interest-free, but are closely attached to conventional deposits. On this background, the objective of this study is to examine the relationship between pricing in Islamic banks vis-à-vis conventional banks by taking the case of Bangladesh. We have used monthly data during the period of 2009-2013. The findings of the study showed that, there is no statistically significant difference between the monthly average lending rates of Islamic banks and conventional banks. However, there is significant difference between deposit rates. The existence of causal relationship wa...
Basel I, the initial Capital Adequacy Framework, was introduced in 1988 and the new Capital Adequ... more Basel I, the initial Capital Adequacy Framework, was introduced in 1988 and the new Capital Adequacy Framework, Basel II, was replaced it in 2004. In Bangladesh, the Bangladesh Bank, guided by the Basel II, replaced the Basel I in phases during 2009-10. According to the new rule, Bangladesh Bank requires all the relevant financial institutes to maintain a capital base that is 10% of risk weighted assets. This new stringent requirement is 2% more than that of the previous requirement, 8%. Now, the concern is to what extent the capital control endeavor influences the financial performance of the banks in Bangladesh. To answer this question, this article explores relevant secondary data of 15 listed private commercial banks (out of 30) in Bangladesh. Particularly, the article used multivariate panel OLS regression models where financial performance or profitability of commercial banks was measured in terms of relevant influencing variables (e.g. asset turnover, size of the firm, capita...
Often we observe that the third world countries always top the corruption indices compare to the ... more Often we observe that the third world countries always top the corruption indices compare to the developed West. This incident naturally leads to the question of why - Is it because the third world countries are significantly more corrupt than the developed countries? Or, is there any other reason behind this issue?--these are the questions that are explored in this article. To be more specific, this article critically explores contemporary arguments regarding inherent issues of corruption and various aspects of measurement techniques of corruption indices (e.g. definition issue, identification problem, clandestine nature of corruption, perceptual problem, validity and reliability of corruption data). Thus, by examining the innate complex nature of corruption, the article argue that, in many cases, in comparison to the developed West, corruption of developing nations may not be as deep as the corruption indices, which are also contested, accuse. In addition, the article emphasizes t...
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institutions. Considering the current condition of financial institution of Bangladesh it has become important for Bangladesh to implement BASEL-II adequately to get
sound financial performance. Accordingly, this study aimed to explore to what extent the capital control endeavor influences the financial performance of the banks in Bangladesh. To investigate, this article explores relevant secondary data of 25 listed private commercial banks (out of 30) in Bangladesh for the time horizon of 5 years (2008-2012). Particularly, the article used multivariate panel OLS regression model where financial
performance or profitability of commercial banks was measured in terms of relevant influencing variables (e.g. asset turnover, size of the firm, capital adequacy ratios). The
result shows that the capital adequacy requirement might have a positive impact on the profitability of the commercial banks in Bangladesh.
institutions. Considering the current condition of financial institution of Bangladesh it has become important for Bangladesh to implement BASEL-II adequately to get
sound financial performance. Accordingly, this study aimed to explore to what extent the capital control endeavor influences the financial performance of the banks in Bangladesh. To investigate, this article explores relevant secondary data of 25 listed private commercial banks (out of 30) in Bangladesh for the time horizon of 5 years (2008-2012). Particularly, the article used multivariate panel OLS regression model where financial
performance or profitability of commercial banks was measured in terms of relevant influencing variables (e.g. asset turnover, size of the firm, capital adequacy ratios). The
result shows that the capital adequacy requirement might have a positive impact on the profitability of the commercial banks in Bangladesh.