Bangladesh Bank Training Academy Journal

Abstract: Through employing financial and economic growth theories and adopting the panel Data of 27 provinces from 1995 to 2010, this paper uses the panel data model to measure the influence of two different organizations on economic growth: banks and non-bank financial institutions. Results show that there is a significant and economic correlation between economic growth and banks instead of non-bank financial institutions. On this basis, this paper further examines the reform of financial institutions. Final\y, a conclusion is drawn that large state-owned banks should be commercialized and a new financial system composed of medium and small banks should be established.

Citation: Zhu, X., Zhu, W., Ding, S., & Shu, W. (2013). The impact of financial development on China's economic growth—An empirical study. Thoughts on Banking and Finance, 2(2), 13–23.

Abstract: This paper explains the guiding principles of the Seventh five year plan. In particular, the vision to achieve middle income status of the country by 2021. It underscores that this will remain a core development objective. The macro-economy is facing different socioeconomic challenges from overheating of the economy and adverse developments in the stock market. But the corrective policy actions suggested in the plan will minimize the damages and restore macroeconomic stability. The paper observed that while the above record of progress is comforting, the government needs to understand that the reform agenda is unfinished. The GDP growth rate is healthy but below the targeted rate in the Sixth Plan. Progress in improving the investment rate is less than satisfactory and must be strengthened to accelerate the growth rate in order to achieve the middle income status envisioned in Vision 2021 and the nation’s first Perspective Plan.

Citation: Alam, S. D. (2013). Perspectives of 7th five year plan and possible role of the financial sector to stimulate growth. Thoughts on Banking and Finance, 2(2), 24–30.

Abstract: Green Banking (GB)is banking honoring environment.Compared to the developed economies, the status of GB is not satisfactory in developing countries. The broad objective of the study is to discuss the conceptual aspects and existing literature in the context of both the developed and developing countries, and examine the implementation status of GB in Bangladesh. The study finds that all the banks of the country have formulated GB policies and have departments/cells for GB; over 41 percent bank branches have online banking facilities; about 80 percent banks have some initiatives related to financing environment friendly projects; all the banks have some sort of training arrangement for their employees. In general, banks do not publish separate reports of their green activities, however, all the banks report to Bangladesh Bank and in their annual reports. The study recommends that the challenges faced in implementing GB can be overcome by the active participation of all stakeholders.

Citation: Ullah, M. S., & Rahman, T. (2013). Green banking in Bangladesh: Conceptual aspects and implementation status. Thoughts on Banking and Finance, 2(2), 31–53.

Abstract: Non-bank financial institutions (NBFIs) prepare their financial statements complying with the requirements of different regulators. The study is conducted to illustrate the present status of compliance with the regulatory requirements in preparing the financial statements (FSs) of listed NBFIs in Bangladesh and analyzes the effectiveness of regulatory initiative in this regard. A list of 120 disclosure items has been selected consulting the related regulations. The study covered 20 non-bank financial institutions, which are listed on DSE up to 2008 and data have been collected from the annual reports of the concern firms for the years 2008 and 2011. The results show that the industry average total disclosure score of 2011 is 83.17% that was 56.17% only in 2008. This improvement has been possible because of regulatory initiatives in this regard. It indicates that the firms are very much reluctant to comply if the regulators do not push them. Therefore, to ensure full compliance with all requirements it is important to strengthen the capacity of the regulators for close supervision and monitoring. This type of regulatory initiative may be taken for other industries also that could improve disclosure level of the firms.

Citation: Hossain, M. M., & Khatun, M. (2013). A study on regulatory compliance in preparing financial statements of listed non-bank financial institutions. Thoughts on Banking and Finance, 2(2), 54–74.

Abstract: Strong debate exists regarding macroeconomic implications of the new bank regulatory standards on capital and liquidity, known as Basel III, issued by Basel Committee on Banking Supervision. Thispaper discusses the benefits, challenges, options and opportunities of implementing higher capital ratios and liquidity standards in the banking industry of Bangladesh. As discussed, benefits would stemfrom lower probability of banking crises emanatedfrom more stringent capital holdings while costs would be in the form of higher lending rates premia over deposit rates due to higher capital levels on aggregate output, reduced profitability, shadow banking possibility. We conclude that a rigorous quantitative impact study could be conducted before implementing the newframeworkfor increasing the resilience of the banking sector without impeding economic growth of Bangladesh.

Citation: Islam, M. S., Uddin, M. A., & Siddiqui, M. S. (2013). Implementing BASEL III in Bangladesh: Benefits, challenges, options and opportunities. Thoughts on Banking and Finance, 2(2), 75–90.

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Citation: Younus, S., & Mily, N. N. (2013). The impact of private sector credit on output and the price level in Bangladesh. Thoughts on Banking and Finance, 2(2), 91–108.