Annual Banking Conference 2014 · welcome you all to the Annual Banking Conference-2014 organized by the Bangladesh Institute of Bank Management (BIBM). ... Deputy Managing Director,

Annual Banking Conference20142014

Welcome Message

Director General Bangladesh Institute of Bank Management

welcome you all to the Annual Banking Conference-2014 organized by the Bangladesh Institute of Bank Management (BIBM). It is a two-day long platform of interaction intends to bring together banking experts,

academicians and researchers from home and abroad to exchange and share knowledge, experience and research outputs on banking and related issues. The banking industry throughout the world which is in a state of continuous change, facing many problems and challenges, has to address those issues in a pragmatic manner and with the utmost integrity. I hope that the deliberations in this Conference would generate new and innovative ideas on identifying and tackling systemic crises which is a great difficulty for the sector.

This year the conference papers would be presented in four plenary sessions - ‘Banking and Finance’, ‘Information & Commuinication Technology and Human Resource Management in Banks’, ‘Sustainable and Inclusive Finance’ and ‘Risk Management and International Banking’. The Conference accommodates six papers on ‘Banking and Finance’, and six papers on ‘Information & Commuinication Technology and Human Resource Management in Banks’ on day one and the second day of the Conference includes presentation of five papers on ‘Sustainable and Inclusive Finance’, and five papers on ‘Risk Management and International Banking’.

Organizing Annual Banking Conference is a daunting task in view of time and other constraints. It would not have been possible without continuous effort of my BIBM colleagues and other concerned bankers, academicians and researchers. I, on behalf of the Conference organizer, express my heartiest gratitude and sincere thanks to all contributors of the Annual Banking Conference-2014 for providing all kinds of support to make the conference successful. Finally, we extend our gratitude to our Governing Body and specially to its Chairman, Governor, Bangladesh Bank for motivating, encouraging and helping us for organizing this annual banking conference.

I wish a grand success of the conference.

Dr. Toufic Ahmad Choudhury

Annual Banking Conference-2014www.bibm.org.bd 1

Saturday, 06 December, 2014 Time Program Location

Annual Banking Conference-2014www.bibm.org.bd2

0930-1030

1030-1100

1100-1330

1330-1500

BIBM Auditorium

BIBM Auditorium

BIBM Canteen

Inaugural Session (Day One)

Welcome Address by Professor Dr. Shah Md. Ahsan Habib, Chairman Organizing Committee

Inauguration of the Conference by Dr. Atiur Rahman, Chairman, BIBM Governing Board and Governor, Bangladesh Bank

Launching of Publications and BIBM Alumni Website by Dr. Atiur Rahman, Chairman, BIBM Governing Board and Governor, Bangladesh Bank

Presentation of the Inaugural Research Paper titled ‘A Review of the Banking Activities-2013’ by Dr. Toufic Ahmad Choudhury, Director General, BIBM

Refreshment

Plenary Session-1: Banking and Finance

Chair: Mr. S.K. Sur Chowdhury, Deputy Governor, Bangladesh Bank

Panelists: Dr. Md. Sadiqul Islam, Professor, Department of Finance, University of Dhaka Dr. Md. Akhteruzzaman, Economic Advisor, Bangladesh Bank Dr. Khandaker Golam Moazzem, Additional Research Director, Center for

Policy Dialogue (CPD) Dr. Prashanta Kumar Banerjee, Professor & Director (R,D&C),

Bangladesh Institute of Bank Management (BIBM)

Papers to be Presented:

Paper-1:Prospects and Challenges of Sukuk for Financing Infrastructure Projects in Bangladesh

Paper-2:Institutional Investment and Corporate Social Performance in Financial Institutions: Are the New Policies Working?

Paper-3:An Analysis of Pattern of Saving Behavior of the People of Dhaka CityPaper-4:Role of Financial Institution in Economic Growth: A Case of NepalPaper-5:Predicting Corporate Financial Distress in Listed Engineering Companies

of Bangladesh: An Empirical Study using Altman Z-Score ModelPaper-6:Dynamic correlation analysis of spill-over effects of risk and return on

South Asia, EU and US stock returns

Lunch

Program Schedule Day One

1500-1730

1730

BIBM AuditoriumPlenary Session-2: Information & Communication Technology and Human Resource Management in Banks

Chair: Mr. S. A. Chowdhury, A.K. Gangopadhaya Chair Professor, Bangladesh Institute of Bank Management (BIBM)

Panelists: Mr. Ali Ahsan, Professor, Department of Management University of Dhaka Mr. Md. Musharrof Hossain, Head, Human Resources Management,

ICDDRB. Mr. Abul Kashem Md. Shirin, Deputy Managing Director, Dutch Bangla

Bank Ltd. Mr. S.M. Mainuddin Chowdhury, Deputy Managing Director, Southeast

Bank Ltd.


Paper-7:A Study on Information System Adoption and Job Satisfaction among Banking Employees in Khulna City

Paper-8:Banking on Technology and Innovations in India – The Road AheadPaper-9:E-Banking Paradigm & Consumer’s Changing BehaviorPaper-10:Introduction of the Biometric ATM Card in the Banking Sector of

Bangladesh: A Digital Way to Reduce the Digital CrimePaper-11:Factors Affecting Job Satisfaction of Female Employees: A comprehensive

study on Private Commercial Banks in Sylhet CityPaper-12:Impact of Office Design on Employees’ Productivity: A Case Study of

Banking Organizations of Dhaka

Refreshment

Annual Banking Conference-2014www.bibm.org.bd

Saturday, 06 December, 2014 Time Program Location

Program Schedule Day One

0930-1015

1015-1045

1045-1300

1300-1430

BIBM Auditorium

BIBM Auditorium

BIBM Canteen

Inaugural Session (Day Two)

Welcome Address by Dr. Toufic Ahmad Choudhury, Director General, BIBM

Key Note Speech by Mr. Khondkar Ibrahim Khaled, Dr. Muzaffer Ahmad Chair Professor, BIBM

Chaired by Mr. Moazzem Hossain, Editor, The Financial Express

Refreshment

Plenary Session-3: Sustainable and Inclusive Banking

Chair: Professor Shibli Rubayat Ul Islam, Dean, Faculty of Business Studies, University of Dhaka

Panelists: Mr. Ali Reza Iftekhar, Managing Director, Eastern Bank Ltd. Mr. David Munro, Team Leader, Business Finance for the Poor in

Bangladesh, DFID Dr. Sarwar Uddin Ahmed, Professor and Dean, School of Business,

Independent University Dr. Shah Md. Ahsan Habib, Professor and Director (Training),

Bangladesh Institute of Bank Management (BIBM)


Paper-1:Sustainable Banking – A Study on Some Selected Commercial Banks of Bangladesh

Paper-2:Determinants of Farmers’ Access to Formal Credit Market: A Case Study of Naogaon District

Paper-3:Do CSR Activities Have Impact on The Financial Performance of the Firms? A Study on the Banking Sectors of Bangladesh

Paper-4:Green Banking Policies and Practices in Bangladesh: Current Status and Required Measures

Paper-5:Financial Inclusion of Low Income Working Women: Bangladesh Perspective

Lunch

Sunday, 07 December, 2014 Time Program Location

4 Annual Banking Conference-2014www.bibm.org.bd

Program Schedule Day Two

1430-1700

1700-1730

1730

BIBM Auditorium

BIBM Auditorium

Plenary Session-4: Risk Management and International Banking

Chair: Dr. Toufic Ahmad Choudhury, Director General, Bangladesh Institute of Bank Management (BIBM)

Panelists: Dr. M Amzad Hossain, Professor and Dean, Faculty of Business Studies,

University of Rajshahi Dr. Mohammad Saleh Jahur, Professor, Department of Finance and

Banking, University of Chittagong. Mr. Mehmood Hossain, Managing Director, Bank Asia Ltd. Mr. Ahmed Kamal Khan Chowdhury, Managing Director (Acting), Prime

Bank Ltd.


Paper-1:Asset Liability Management by Banks in Bangladesh-An Evaluative StudyPaper-2:Impact of Basel II Implementation on Financial Performance of Private

Commercial Banks of BangladeshPaper-3:LC: Crunching Volume, Changing RegimePaper-4:Trends and Practices of Trade Services Operations in BanksPaper-5:Credit Quality and its Impact on Bank Performance

Concluding Session

Concluding Speech by Md. Abul Quasem, Chairman, BIBM Executive Committee and Deputy Governor, Bangladesh Bank

Vote of Thanks by Dr. Toufic Ahmad Choudhury, Director General, BIBM

Refreshment

Annual Banking Conference-2014www.bibm.org.bd

Sunday, 07 December, 2014 Time Program Location

Program Schedule Day Two

Abstract of the Conference Paper


Paper 1

Prospects and Challenges of Sukuk for Financing Infrastructure Projects in Bangladesh

Md. Golzare NabiDeputy General Manager, Research Department, Bangladesh Bank, Head Office, [email protected] SultanaEx-Intern, Research Department, Bangladesh Bank, Head Office, Dhaka

he world has witnessed tremendous application of Sukuk as Islamic financial instruments in financing infrastructure projects during the last decade. Sukuk, the Islamic Shariah complaint financial instrument has

recorded unprecedented expansion not only in Muslim majority countries of South-East Asia and Middle Eastern countries but also in Major western and Asian large economies like UK, France, Germany, Ireland, Singapore, China and Hong Kong. Like other countries, Bangladesh has also great potentials of applying Sukuk to finance infrastructure projects. Though Bangladesh has achieved over 6% GDP growth during the last decade, it is required to have GDP growth over 8% to make the remaining poor people (26%) to get rid of poverty cycle. The major constraint to have GDP growth over 8% lies in inadequacy of infrastructure-lack of sufficient quality road, ports, power and transport facilities. Inadequate fiscal surplus, lack of suitable instruments of the local capital market, declining foreign aid/loand and small FDI stand in the way of smooth development of infrastructure projects in Bangladesh. Given this context, Sukuk may be a viable option for financing infrastructure projects in Bangladesh. Following world-wide success of Sukuk, there has created much interest among policy makers, finance practitioners and academicians to examine the efficacy of Sukuk in project financing in Bangladesh. The proposed paper would attempt to analyze conceptual aspects of Sukuk and its feasibility in financing infrastructure projects in Bangladesh.

Paper 2Institutional Investment and Corporate Social Performance in Financial Institutions: Are the New Policies Working?

Mr. Hanif MahtabSenior Lecturer, School of Business, Independent University, Bangladesh (IUB)Ms. Eriko SultanaSenior Project Student, School of Business, Independent University, Bangladesh (IUB)

ith the rise in institutional investments in Financial Institutions, this particular research attempts to examine the changes in the relationship between institutional investment (II) and corporate social performance (CSP) in the

public listed financial institutions in Bangladesh between 2008 and 2012, in order to see whether relevant policy changes by institutions such as Bangladesh Bank has any positive affect. Following a study by Ahmed et al of 152 Dhaka Stock Exchange listed companies, this paper updates the analysis done on 2008 with available data on 2012 for 65 financial institutions. The study found that the Banking sector met all the requirements in each category of CSP, whereas other financial institutions were able to only meet basic requirements in corporate governance and ethical value, while not meeting requirements in environment, workplace, disclosure, and community. Even though there was some improvement in CSP from 2008, the study could not find sufficient differences to claim that new policies make the relationship significant. The study suggests certain policy guideline improvements so that institutions like Bangladesh Bank & SEC can better regulate in future.

Paper 3

An Analysis of Pattern of Saving Behaviour of the People of Dhaka City

Fowzia AhmedExecutive Officer, Mid-market Assets and Client Origination Department, Bank Asia Limited, [email protected]

his study aims to find out whether the data satisfies the Life Cycle Hypothesis of Franco Modigliani, which narrates that, the need of consumption and income are often unequal at different points of time. In the young age,

consumption exceeds income, in the middle age, earnings generally increase and individuals save for future. At retirement, income declines and individuals consume out of previous saving. This theory leads to important and non-obvious predictions of the economy as a whole, that national saving depends on the rate of growth of national income, not its level, and the level of wealth on the economy bears a simple relation to the length of the retirement span. Modigliani had noticed that one of the most important motives for putting money aside was the need to provide for retirement. Young people will save so that when they are old and either cannot work or do not wish to work, they will have money to spend. The data used in this study satisfies the Life Cycle Hypothesis. Another objective was to find out whether saving pattern differs over sex or not. The analysis of the data set shows that the pattern of income varies over sex.

Paper 4

Role of Financial Institution in Economic Growth: A Case of Nepal

Bharat Ram DhunganaAssistant Professor, School of Business, Pokhara University, Nepal andPh.D. Student in Finance at BHU, Varanasi, [email protected]

his paper examines short run and long run causal relationship between financial institutions and economic growth of Nepal. The study is based on secondary data representing from 1980 to 2012. The gross domestic product (GDP),

financial system deposit (FSD), credit to government and state owned enterprises (CGSOE), domestic credit to private sectors (DCPS), and gross national expenditure (GNE) have been used to find the causal relationship between financial institutions and economic growth using granger causality (GC) test, Johnson co-integration test, Vector error correction model (VECM), and Wald test statistics. The VECM suggests for the validity of long run association among the variables of GDP, CGSOE, DCPS, and GNE. The Wald test statistic also finds short run joint effects of independent variables to dependent variables-GNE but in the case of dependent variable GDP, there is no short run joint effect. The study shows that there is a long-run association between financial institutions and economic growth of Nepal. A well-developed financial system facilitates for economic growth of nation in long run. The regulatory authority and financial institutions should accelerate financial efficiency that may facilitate to stimulate adequate capital formation and investment in productive sectors.

Annual Banking Conference-2014www.bibm.org.bd 7


Paper 5

Predicting Corporate Financial Distress in Listed Engineering Companies of Bangladesh: An Empirical Study using Altman Z Score Model

Md. Shahid Ullah Assistant Professor, Bangladesh Institute of Bank Management (BIBM), [email protected]; [email protected] BhattacharjeeLecturer, Department of Management Studies, University of Chittagong

inancial distress is a phenomenon where a company cannot meet, or has difficulty to pay off its financial obligations. There are a number of ways to predict the likelihood of insolvency of a firm. A good way to measure

the possibility of bankruptcy is using Z score model (Altman, 1968). The broad objective of the study is to investigate the financial soundness of the publicly listed engineering companies in Bangladesh. The specific objectives of the study are to assess the likelihood of financial distress of leading engineering companies listed with Dhaka Stock Exchange (DSE) for a period of nine years ranging from 2005 to 2013 using Altman’s Z-score model; and to compare their financial strength and performance using trend analysis. The study found that seven companies seem to be financially safe and sound, one company is in financial distress risk and two companies are in the grey area. The study also found that the market values of shares are not commensurate with the performance of the companies. The study suggests that the Altman’s Z score model needs be applied in Bangladesh cautiously because of high volatility and imperfection in the market value of listed securities and low reliability of financials.

Paper 6

Dynamic Correlation Analysis of Spill-over Effects of Risk and Return on South Asia, EU and US stock returns

Dr. Md. AkhtaruzzamanLecturer, Newcastle Business School, University of Newcastle, [email protected]

he paper examines the spillover effects of risk and return on the equity markets of four South Asia (Bangladesh, India, Pakistan and Sri Lanka) countries, European Union and the US using the dynamic conditional correlation

GARCH model (DCC-GARCH) introduced by Engle (2002). We find significant variation in conditional correlation as well as in conditional volatility between markets through time. Financial crises (Asian financial crisis (July 1997–December 1998), global financial crisis (July 2007–June 2009) and European debt crisis (January 2010–December 2012)) act as structural breaks, with correlations increasing markedly between EU and US during these crises periods. However, time-varying correlations between South Asian countries and the US and EU did not increase significantly during these crises periods. Dynamic conditional correlation among these markets increases over time, which supports evidence consistent with increasing global market integration. Correlation dynamics has important implications for international portfolio diversification and asset allocation.

9Annual Banking Conference-2014www.bibm.org.bd

Paper 7

A Study on Information System Adoption and Job Satisfaction among Banking Employees in Khulna City

Sandip Sarker (Corresponding Author)Graduate Student, Business Administration Discipline, Khulna [email protected] Salahuddin YousufGraduate Student, Business Administration Discipline, Khulna [email protected] Mollika PalitGraduate Student, Business Administration Discipline, Khulna [email protected]

nnovation within information technology (IT) has created swift growth in the business sector, and has changed the way business activities are performed in the financial industry. Currently there are fifty six (56) commercial banks

in operation in Bangladesh. With rising competition in this sector, success depends mostly on acquiring and maintaining a skilled workforce. The aim of the study is to establish if there is any significant relationship between Information System (IS) adoption and job satisfaction among banking employees in Khulna region. We have used a structured questionnaire to collect data, and our target population is the commercial bank employees who have been working for at least one year (1) in the Khulna region. We have used statistical tools such as regression, correlation, ANOVA, T test to analyze data. The result shows that four dimensions of Information System adoption are statistically significant with job satisfaction. With regards to different types of banks and departments, no difference in job satisfaction has been found. However, contrasts in job satisfaction have been discovered among male and female employees and different employment levels. These findings are of significant interest to decision makers in the banking industry who are instrumental in IT system implementation.

Paper 8

Banking on Technology and Innovations in India – The Road Ahead

Srihari SubudhiPh.D. Scholar, All India Management Association, and Deputy Chief Manager (IT) in Oriental Bank of Commerce, New Delhi, [email protected]

dvances in information and communication technologies have transformed the way banks do their businesses today. Technology-enabled disruptive business models, progressive regulatory environment and changing

customer needs are forcing the banks in India to be innovative. This study tries to find out the various innovative banking products/services available in India. It examines various technologies that can help banks in offering innovative products/services in the future. In this study, we have referred various Research Papers and Reports of Reserve Bank of India, various banks and IT companies working in the banking domain. The primary data was collected from 50 bankers and bank customers through structured telephonic interview during June 2014. The paper reveals that apart from having a large branch network, ATMs, POS Terminals, micro-ATMs and Business Correspondents, banks in India have recently introduced various innovative products/services like TV Banking, Facebook Banking, Self-Banking, Tab Banking and Video Banking, etc. There is huge scope for the banks in India to leverage the unique ID card (Aadhaar Card) based biometric authentication to offer more and more innovative products/services in the future. So far as banking on technology and innovations is concerned, India is going to have an exciting time ahead.


Paper 9

E-Banking Paradigm & Consumer’s Changing Behavior

Muhammad Humayun KabirAssistant Vice President & Regional Manager, Personal Banking Division, Dutch-Bangla Bank Ltd. [email protected]

ith the revolutionary usage of e-Banking and the emergence of contemporary internet-driven banking solution rendered by different privatized commercial banks of our country; consumers have becoming more variety-seeker

in their day to day banking aptitude. Moreover e-Banking also preludes the consumers to change their perception of conveniences in receiving banking services. The core objective of this article is to enumerate the present scenario of e-Banking activities and its related services rendered by the privatized commercial banks of our country and consequently analysis of how this e-Banking significantly changes the behavioral pattern of the target consumers. The methodology adopted to conduct this research paper comprises of in-depth analysis of the existing databases found in different institutions culturing e-Banking, direct interviewing with some consumers through relevant questionnaire, and experimental research of different propositions in relation with the current practices of e-Banking. Finally the paper will reveal the findings that e-Banking may govern the banking arena in future banking environment and there will be no other ways for these banks but to adapt with the consumer’s changing behavior by way of continuous innovations of technology-driven banking products.

Paper 10

Introduction of the Biometric ATM Card in the Banking Sector of Bangladesh: A Digital Way to Reduce the Digital Crime

Taslima Akther Lecturer, Department of Accounting & Information Systems, Jagannath University, Dhaka [email protected] Arifin Islam Lecturer, Department of Accounting & Information Systems, Jagannath University, [email protected]

n parallel with the global development, the Banking sector of Bangladesh has gained an admirable progress up to date, with the use of advancement in technology. ATM card service is the most convenient service of the bank, but it

is not beyond criticism. Identity theft or ATM card frauds has become the most talked topic now a days, whereas Biometric ATM card has emerged as a solution to this problem. This study deals with the safety issues of Biometric ATM card, as the authors are highly interested whether the Biometric ATM card is safer than the existing traditional ATM card. We have found that Biometric ATM card is safer than the existing traditional ATM card and it can lessen the digital crime such as ATM card frauds.


Paper 11

Factors Affecting Job Satisfaction of Female Employees: A comprehensive study on Private Commercial Banks in Sylhet City

Md. Mizanur RahmanAssistant Professor, Department of Business Administration, Metropolitan University, [email protected] Kamrul AhsanSenior Lecturer, Department of Business Administration, Metropolitan University, [email protected]. Saidur RahmanGraduate Student, Department of Management Studies, Rajshahi University, Rajshahimail: [email protected]

ob satisfaction is the most extensively discussed issue in Organizational Behavior, Human Resource and Organizational Management. This study aims at identifying some important factors which affect female bank

employees’ job satisfaction. A highly structured questionnaire was prepared to collect primary data from 110 female employees, working at private commercial banks in Bangladesh. Several statistical tools and techniques i.e. Descriptive Analysis, ANOVA, Pearson Correlation, and Multiple Regression have been used to determine authentic findings and draw a significant conclusion. The findings of the study reveal eleven driven factors i.e. job security, participation in decision making, available leave facilities, reorganization of good work, attitude of top management, salary increment, specific time for family, motivation to work, promotional opportunity, flexible working hour, benefits and services that affect female bank employees’ job satisfaction. So, the authority should address those factors properly for the development of private commercial banking sector in Bangladesh.

Paper 12

Impact of Office Design on Employees’ Productivity: A Case Study of Banking Organizations of Dhaka, Bangladesh.

Md. Hasan UddinAssistant Professor, Department of Finance and Banking, Faculty of Business Administration and Management, Patuakhali Science and Technology University, [email protected]; [email protected]

ffice design plays a crucial role for the employees. Nowadays employees may have a large number working alternatives, and then the environment in workplace becomes a critical factor for accepting and/or keeping the jobs.

The quality of office design may simply determine the level of employee’s motivation, subsequent performance and productivity. The main purpose of this paper is to address the impact and significance of office design on employees’ productivity. For this purpose, 50 bank branches of 30 banks were contacted and studied. The findings of this study show that office design is very vital in terms of increasing employees’ productivity. Comfortable and ergonomic office design motivates the employees and increases their performance substantially. Most of the organizations do not give importance to office design; this study will give them ample reasons to consider office design as an important factor in increasing their employees’ productivity.


Paper 13

Sustainable Banking- A Study on Some Selected Commercial Banks of Bangladesh

Dr. Md. Jahirul HoqueProfessor, Faculty of Business Administration, Eastern University, [email protected]. Kabir HossainResearch Fellow, Eastern University, [email protected]

ustainable banking is a crying issue now – a – days in the entire financial and non-financial arena. A total number of 20 banks have been selected out of 47 banks operating in Bangladesh. These banks were selected using simple

random sampling method. The study has revealed the awareness and importance of the selected bankers’ and customers’ as to the major indicators of sustainable banking. It is observed that the selected bankers have been much more aware of the major economic indicators of sustainable banking as compared to the selected customers. The bankers’ awareness has been higher than the customers’ in respect of CSR and environmental indicators as well. It is further seen that CSR investment and environmental issues’ investments are of little amount. The impact of sustainable banking on shareholders’ wealth has been found to be 77.2 percent. The study also suggests that especially in case of CSR investments and environmental issue’s investments should to be boosted up and take immediate follow up proper actions with a view to improving shareholders’ wealth which can be done in the following ways: (i) the relevant bank authority should play a vital role in sustainable banking through their lending, borrowing, economic, environmental and CSR decisions (ii) the regulatory authority especially Bangladesh Bank (BB) has also an important role in sustainable banking through its strict supervisions over the above mentioned decisions (iii) the study might contribute to the existing literature in confirming respondents’ awareness and the importance of the major indicators of sustainable banking as well as the impacts of micro variables on shareholders’ wealth.

Paper 14

Determinants of Farmers’ Access to Formal Credit Market: A Case Study of Naogaon District

Zubaidur RahmanLecturer, Depertment of Economics, Bangabandhu Sheikh Mujibur Rahman Science and Technology University, [email protected]. Elias HossainProfessor, Depertment of Economics, University of Rajshahi, [email protected]

armer’s access to credit is considered to have a vital role to enhance their standard of living through increasing agricultural output and productivity. In Bangladesh, farmers are always found to face difficulties in access to credit

services from both formal and informal service providers. This study aims to analyze the scenario of formal credit sources and to identify the factors that influencing the access for farmers to formal credit market in Naogaon district. To this end, primary data were collected from farmers and bank officials. Descriptive statistics and binary logistic model were used to analyze the collected data. The Likert scale was used to identify constraints regarding to credit acquisition from formal credit market. Results found from the binary logit model indicate that farm size, education, farming experience, access to extension service, agricultural cooperative, access to salaried guarantor, off-farm income, savings account are positively related to access in formal credit market while the same is influenced negatively by age, distance to bank and default on loan repayment. Finally, some suggestions are made towards increasing the extent farmers’ access to formal credit market in Naogaon district.


Paper 15

Do CSR Activities Have Impact on The Financial Performance of the Firms? A Study on the Banking Sectors of Bangladesh

Dewan Muktadir-Al-MukitSenior Lecturer, Faculty of Business Administration, Eastern University, [email protected] Rajib Chandra PaulGraduate Student and Research Associate, Faculty of Business Administration, Eastern University, [email protected]

he study is conducted to determine whether CSR activities have any impact on the financial performance of the Banking sector of Bangladesh. The study also explores the present status of the CSR activities performing by the

listed Banks of Bangladesh. The study uses Return on Equity (ROE) and Return on Asset (ROA) as dependent variables in four different models to represent the financial performance where CSR direct expenditure in amount and seven dummy variables namely CSR expenditure in Humanitarian & Disaster Relief, Education, Health, Sports, Art & Culture, Environment and Others sectors have been used as independent variables to represent the CSR activities. The study uses a sample of 30 commercial banking firms listed in Dhaka Stock Exchange (DSE) for regression purpose. The study shows that there is an increasing trend in CSR expenditure by the commercial banks in Bangladesh where Education sector has been given to top most priority in distribution of CSR fund. The study finds that the relationship of CSR expenditure with ROA and ROE is positive but such relationship is found to be insignificant. The overall result of the study indicates that CSR expenditure does not have impact on the financial performance of the banking sector of the Bangladesh. Regardless the findings of the paper, the study suggests broadening the practices of CSR functions not only in banking sector but also in other corporate sectors.

Paper 16

Green Banking Policies and Practices in Bangladesh: Current Status and Required Measures

Dr. S M Mahfuzur RahmanProfessor, Department of International Business, University of Dhaka, DhakaSuborna BaruaAssistant Professor, Department of International Business, University of Dhaka, [email protected]

angladesh Bank, the central bank of Bangladesh, has recently taken commendable initiatives of introducing green banking through a three phase policy designed to be implemented by the scheduled banks of the country by the end

of December 2013. Bangladesh Bank is also monitoring the green banking activities of the banks. This paper is an attempt of presenting a comprehensive picture about where the country stands in terms of green banking practice and what has been the banks’ position in terms of their ability to implement the Bangladesh Bank’s green banking policy. The paper assesses the green banking activities of 42 scheduled commercial banks of Bangladesh and finds that the scheduled domestic and foreign banks operating in the country are at different stages of implementation of Bangladesh Bank’s green banking policy and are trapped mostly in the lower boundaries of the performance greed. The state owned banks rank low in performance while the foreign banks are leading the league with considerably better achievements. The paper also identifies a number of reasons for the banks’ poor performance in green banking and proposes a few measures for improvement of the situation.


Paper 17

Financial Inclusion of Low Income Working Women: Bangladesh Perspective

Dr. Pinki ShahAssociate Professor, School of Business, University of Liberal Arts [email protected] GuptaLecturer, School of Business, University of Liberal Arts Bangladesh

ver the years, situations have improved both in developed and developing countries and in many instances women are working alongside men in a number of economic sectors. Globally, though middle and upper class

working women have reasonably good access to finance, low income working women remained excluded in many instances mainly in developing countries. Sometimes they are not different from the housewives or non-working women in terms of access to finance. In Bangladesh the economic contribution of women is substantial but they are not largely acknowledged. And, the employment status of women in Bangladesh is still lower than that of the expected level. Generally working women have better access to the banking and financial products than non-working women; however, this is hardly true for the low-income earners working women. The study is an attempt to examine the accessibility of banking services by Bangladeshi low-income working women. The survey reveals inadequate or insignificant access of low-income working women to the banking services. To handle the challenge, banks should introduce the right products and market these at the right time. However, the foremost job is the promotion of awareness and financial literacy among low-income women of the country.

Paper 18

Asset Liability Management by Banks in Bangladesh-An Evaluative Study

Dr. Firoja Akter KhanamAssociate Professor, Department of Finance & Banking, University of [email protected]

he banking scenario in Bangladesh in the 1980s and now, presents a perfect study of contrast. Due to several reforms, banks are now moving away from the traditional lines of service and in the process, are exposed to more

risks. One of the ways for managing the risks is Asset Liability Management (ALM). ALM is an attempt to match the assets and liabilities in terms of their maturities and interest rate sensitivities so that the risk arising from such mis matches mainly interest rate risk and liquidity risk –can be contained within a desired level. The present study is an attempt to evaluate the Asset Liability Management of Private Sector Banks of Bangladesh with special emphasis on interest rate risk management. The study applied duration method which is one of the most developed techniques of quantifying and managing interest rate risk management. The study also examined the impact of duration gap on value (net worth) of the banks. Finally, the study suggests some policy implication to improve the asset liability management of banks.


Paper 19

Impact of Basel II Implementation on Financial Performance of Private Commercial Banks of Bangladesh

Dr. Samiul Parvez AhmedSenior Lecturer, Finance, School of Business, Independent University, Bangladesh (IUB)Md. Nazmul IslamResearch and Development Officer, School of Business, Independent University, Bangladesh (IUB)G. M. Wali UllahLecturer, Finance, School of Business, Independent University, Bangladesh (IUB)

asel 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 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 ratio). The result shows that the capital adequacy requirement might have a positive impact on the profitability of the commercial banks in Bangladesh.

Paper 20

LC: Crunching Volume, Changing Regime

Kazi ABM Bashir AhmedFirst Assistant Vice President, EXIM Bank Ltd. Gulshan Branch, [email protected]. Saidul IslamPrincipal Officer, EXIM Bank Ltd, Paltan Branch, [email protected]

etters of credit having the ability to secure cross border transactions are widely used, but its volume and regime are changing. Other methods of trade finance are growing. LC now covers only 49% of our export. Supported by

slightly relaxed state regulation, documentary collection, whether or not URC is clearly endorsed by BB, is growing as fast as 10% per year while most of our exporters do not appear to be aware that a bank to bank maturity confirmation does not obligate the bank to pay under a DA basis collection. This problem with DA persists even when the transport document, if any, is consigned to (or order) of a bank as per GFET and when EXP forms, based on an acceptable credit report, are certified by bankers ensuring timely repatriation. CMT and consignment basis export under open account is frequent when USA withdraws GSP, EU more cautious with GSP, buyer fine tuning compliance issues and export orders are going tight. Sometimes mixed with performance guarantees, payment in advance against import is on the increase, although highly regulated. ISP98 instead of URDG is seen in few instances. A new or revised guideline for collection, open account and guarantees may well be a timely step.


Paper 21

Trends and Practices of Trade Services Operations in Banks

Tofayel AhmedLecturer, Bangladesh Institute of Bank Management (BIBM), [email protected] Al FaisalLecturer, Bangladesh Institute of Bank Management (BIBM), [email protected]. Nesarul HoqueSenior Assistant Vice President, Mutual Trust Bank Ltd.

he trajectory of trade over the last 25 years is decidedly split into two parts: the period prior to the Great Trade Collapse of 2008-9, during which global trade growth far outpaced global GDP growth, and the period after the

crisis, during which global trade and global GDP have grown at roughly the same pace. The ongoing global liberalization and integration process have brought considerable changes in international trade transactions and practices that have been affecting trade services by banks covering mainly facilitation of trade payment and trade financing. Bangladesh is now closely linked to the global economy by trade flows that have grown over the years. In the study, an overview of the overall activities of trade services operations of banks for the years CY2011, CY2012 and CY2013 has been discussed. Moreover, the challenges in practicing different trade transactions are highlighted here. The paper has also discussed relevant regulations and reviewed pertinent literature to create the backdrop of the study.

Paper 22

Credit Quality and its Impact on Bank Performance

Md. Nehal AhmedAssociate Professor, Bangladesh Institute of Bank Management (BIBM), [email protected]; [email protected] Chandra PanditAssistant Professor, Bangladesh Institute of Bank Management (BIBM), [email protected]; [email protected]. Zakir HossainLecturer, Bangladesh Institute of Bank Management (BIBM), [email protected]; [email protected]

ound credit operations of banks are really important in a country like Bangladesh that distinctly depends on bank finance for increasing economic activities. Credit operations of banks in a country may be adversely affected if the

quality of bank credit declines. Decline in the credit quality also affects bank performance particularly profitability, capital adequacy, and growth, etc. The current study is an endeavor to understand the status of bank credit quality in Bangladesh and their impact on bank performance. Study result shows that credit quality of Banks were adversely affected in the recent years and NPL increased to 8.93 percent in December 2013. Study identified that bank profit could be doubled in the absence of NPL. In addition, the study identified some reasons such as unhealthy competition, unrealistic profit target of banks, ineffective internal control system of banks, poor pre-sanction assessment & improper borrower selection, poor post sanction monitoring and fund diversion that contributed most in the decline of bank credit quality in recent times and suggested some policy measures to control rising NPL in the Banking sector of Bangladesh.

Graphics & Design: Md. Nasir Uddin, CSSA, BIBM

Annual Banking Conference-2014 Organizing Committees:

BIBM Academic Committee (Overall Supervision)Dr. Shah Md. Ahsan Habib Professor & Director (Training) ChairmanDr. Prashanta Kumar Banerjee Professor & Director (R D & C) MemberFahmida Chowdhury Associate Professor MemberMd. Mohiuddin Siddique Associate Professor & Director (DSBM) MemberMd. Nehal Ahmed Associate Professor Member-Secretary

Organizing Sub-Committee (Academic)Dr. Shah Md. Ahsan Habib Professor & Director (Training) ChairmanMd. Nehal Ahmed Associate Professor MemberMd. Alamgir Assistant Professor MemberAtul Chandra Pandit Assistant Professor Member Md. Masudul Haque Assistant Professor MemberMd. Shahidullah Assistant Professor MemberMd. Ruhul Amin Assistant Professor MemberNur Al Faisal Lecturer MemberTofayel Ahmed Lecturer Member-Secretary

Organizing Sub-Committee (Administrative)Dr. Shah Md. Ahsan Habib Professor & Director (Training) ChairmanSk. Nazibul Islam Faculty Member MemberMd. Lutful Alam Maruf Network Manager MemberMd. Nuruzzaman Senior Accounts Officer MemberSharmina Nargish Senior Administrative Officer MemberS. M. Shahinul Islam PS to Director General MemberMd. Golam Kabir PPRO (In-charge) MemberSujan Kumar Ghosh Training Officer MemberPapon Tabassum Research Officer MemberFarhana Haque Assistant Librarian MemberMd. Habibur Rahman Assistant Program Officer (DSBM) MemberMd. Hamidur Rahman Hostel Superintendent MemberAKM Shahinuzzaman Staff Officer MemberTarannum Purween Research Assistant MemberNur Al Faisal Lecturer Member-Secretary

Session Coordination Session-1 1. Atul Chandra Pandit Assistant Professor, BIBM 2. Abdul Halim Lecturer, BIBM Session-2 1. Mahbubur Rahman Alam Assistant Professor, BIBM 2. Md. Masudul Haque Assistant Professor, BIBM Session-3 1. Tahmina Rahman Lecturer, BIBM 2. Tofayel Ahmed Lecturer, BIBM Session-4 1. Md. Shahidullah Assistant Professor, BIBM 2. Nur Al Faisal Lecturer, BIBM

Documents

Annual Banking Conference 2014 · welcome you all to the Annual Banking Conference-2014 organized by the Bangladesh Institute of Bank Management (BIBM). ... Deputy Managing Director,