Bank risk and performance in an emerging market setting: the case of Bangladesh

Purpose – This study aims to investigate the impacts of bank capital requirements on the performance and risk of the emerging economy, i.e. Bangladeshi banking sector. Design/methodology/approach – The study applies an unbalanced panel data which comprises 30 banks yielding a total of 413 bank-year observations over the period 2000 to 2015. Findings – Using generalized methods of moments, the empirical results of this research reveal that bank capital is positively and significantly impressive on bank performance, whereas negatively and significantly impact on risk. The study also finds the inverse relationship between risk and performance in both the performance and risk equations. The results also indicate that there is a persistence of performance and risk from one year to the next year. Originality/value – This is the unique investigation on Bangladeshi bank industry that considers the simultaneous effect of bank capital requirements on risk and performance. Therefore, it is predicted that the empirical evidence of this research shows policy implications to the regulatory authority of Bangladeshi banking industry to determine relevant policies.Objetivo - Este estudio tiene como objetivo investigar los impactos de los requisitos de capital bancario sobre el desempeño y el riesgo de la economía emergente, es decir, el sector bancario de Bangladesh. Diseño / metodología / enfoque - El estudio aplica un panel de datos no balanceado que comprende 30 bancos que arrojan un total de 413 observaciones de año bancario durante el período 2000 a 2015. Recomendaciones - Utilizando métodos generalizados de momentos, los resultados empíricos de esta investigación revelan que el capital bancario es positiva y significativamente impresionante en el desempeño bancario, mientras que tiene un impacto negativo y significativo en el riesgo. El estudio también encuentra la relación inversa entre riesgo y desempeño tanto en las ecuaciones de desempeño como de riesgo. Los resultados también indican que existe una persistencia de desempeño y riesgo de un año al siguiente. Originalidad / valor - Esta es la investigación única sobre la industria bancaria de Bangladesh que considera el efecto simultáneo de los requisitos de capital bancario sobre el riesgo y el rendimiento. Por lo tanto, se predice que la evidencia empírica de esta investigación muestra implicaciones políticas para la autoridad reguladora de la industria bancaria de Bangladesh para determinar las políticas relevantes

Financial Analysis of Selected Pharmaceutical Companies in Bangladesh

With the rapid growth of trade, commerce and industries, the numbers of publicly traded companies are considerably increasing in Bangladesh. Pharmaceutical is an important adjunct of industrialization in the country. But the net profit of this industry has decreased for the last few years. This paper attempted to review the financial performance of this industry, to test its strengths and weaknesses. This study is based on both primary and secondary data. The collected data have been tabulated, analyzed and interpreted with the help of different financial ratios, Multivariate Discriminate Analysis (MDA) as developed by Prof. Altman and statistical tools like mean, standard deviation (SD), coefficient of variance (CV) and T-test, etc. It was observed from the study of the financial statement of the Pharmaceutical industry that the profit earning capacity, liquidity position, financial position and the performance of the most of the Pharmaceuticals are not in sound position and it was also observed that the most of the Pharmaceuticals has a lower level position of bankruptcy. The reasons behind this position of the industry are inefficiency of financial management, absence of realistic goals, strict government regulation and increased cost of raw-materials, labor and overhead. The financial performance should be improved immediately. Therefore, the appropriate authority should take measures for the removal of the above problems

Diagnosing the financial health of Selected Pharmaceutical Companies in Bangladesh

In a developing country like Bangladesh the Pharmaceutical industry as a whole play a vital role in the progress of economicdevelopment. But the net profit of this industry has decreased for the last few years. In this paper we have tried to analyze the financial performance of Selected Pharmaceutical Companies in Bangladesh which is measured in terms of Ratio (Profitability, Liquidity, Solvency and Activity ratio) Analysis and in terms of Testing Financial Soundness by using Multivariate Discriminate Analysis (MDA) as developed by Prof. Altman. For the source of data mainly relied on Annual Reports and official records. It was observed from the study of the financial statement of the Pharmaceutical industry that the profit earning capacity, liquidity position, financial position and the performance of the most of the Pharmaceuticals are not in sound position and it was also observed that the most of the Pharmaceuticals has a lower level position of bankruptcy. The reasons behind this position of the industry are inefficiency of financial management, absence of realistic goals, strict government regulation and increased cost of raw-materials, labor and overhead. The financial performance should be improved immediately. Therefore, the appropriate authority should take measures for the removal of the above problems. Keywords: Financial Performance, Ratio Analysis, Pharmaceuticals Industry, Multivariate Discriminate Analysis (MDA)

Financial Analysis of Selected Pharmaceutical Companies in Bangladesh

The Pharmaceutical industry plays a vital role in the socio-economic development of Bangladesh. But the net profit of this industry has decreased for the last few years. This study is designed to review the financial performance of this industry, to test its strengths and weaknesses. The financial performance of this industry is measured in terms of Ratio (Profitability, Liquidity, Solvency and Activity ratio) Analysis and in terms of Testing Financial Soundness by using Multivariate Discriminate Analysis (MDA) as developed by Prof. Altman. For the source of data mainly relied on Annual Reports and official records. It was observed from the study of the financial statement of the Pharmaceutical industry that the profit earning capacity, liquidity position, financial position and the performance of the most of the Pharmaceuticals are not in sound position and it was also observed that the most of the Pharmaceuticals has a lower level position of bankruptcy. The reasons behind this position of the industry are inefficiency of financial management, absence of realistic goals, strict government regulation and increased cost of raw-materials, labor and overhead. The financial performance should be improved immediately. Therefore, the appropriate authority should take measures for the removal of the above problems. Keywords: Financial Performance, Ratio Analysis, Pharmaceuticals Industry, Multivariate Discriminate Analysis (MDA)

An Appraisal of Tourism Industry Development in Bangladesh

Tourism has considered as the world’s largest and rapid growing industry of modern business world. It has a vital influence on economic development of a country. Bangladesh is a new tourist destination on the map of the world. Bangladesh has enormous potential to develop tourism because of its attractive natural beauty and rich cultural heritage. Tourism can add value in the Bangladeshi economy if proper marketing plan and strategy can be built and implemented for this purpose.  However, this industry fails to reach its destination due to adequate marketing practices. This paper aims to show the present scenario of tourism industry in Bangladesh, identifies the constraints, and suggests remedial measures accordingly. The study also suggests that government should formulate a ‘tourism policy’ immediately for the development of this industry. Both public and private level investment is required in the tourism sector and regional cooperation can bring benefits for Bangladesh

Impacts of micro-finance program on the poor: A comparative study between Grameen bank and ASA in some selected areas of Bangladesh.

Micro-finance has received a global recognition today not only as a powerful instrument for poverty reduction and empowerment of women, but also as a promising sector of financing for the banks, financial organizations and NGOs. The Grameen Bank and ASA in Bangladesh have developed a successful model of reaching credit to poor households that are generally bypassed by Government financial institutions. The present study aims to find out the comparison of the microfinance program between the Grameen Bank and ASA in Bangladesh. This research is conducted on the three Upazilas of Comilla District in Bangladesh. We have used survey method to analysis the real scenario of microfinance system of Grameen Bank and ASA from the field level beneficiaries and the officials as well. Secondary data also used in this study. This paper includes the observations, general overview and key indicators of microfinance services in Bangladesh. This paper also shows problems of microfinance and suggests some recommendations for the improvement of micro-finance in Bangladesh

Human Resource Management Practices and Employees’ Satisfaction Towards Private Banking Sector in Bangladesh

Dramatic advances of Information and Communication Technology (ICT), changing mix and personal values of the workforce, emergence of the knowledge economy and increasing global competition have created enormous challenges on organizations. To cope with the challenges efficiently, human resource has been considered as one of the most important factors in today’s hypercompetitive market place. The focus of this study is to gain an insight into the current HRM practices and its impact on employee’s satisfaction on the private banking sector in Bangladesh. For conducting this research, 100 bank employees are selected from the chosen banks and out of this 88 employees responses properly, the response rate is 88 percent. The questionnaire consists of different questions on nine HRM dimensions such as recruitment and selection systems, compensation package, job security, career growth, training and development, management style, job design and responsibilities, reward and motivation and working environment. The questionnaire was developed by using a five point Likert scale. In this study, some statistical measures such as Z-test, mean and proportion analysis is used to examine employee’s satisfaction. The study reveals that all HRM dimensions exercised in the private banking sector of Bangladesh does not satisfied to the employees equally. Most of the employees are dissatisfied with compensation package followed by reward and motivation, career growth, training and development, management style, and job design and responsibilities. So, these HRM dimensions quality should be improved for the betterment of the bank’s success.Human Resource Management; Employees Satisfaction; Private Bank; Z-test

Bank risk and performance in an emerging market setting: the case of Bangladesh

Purpose ? This study aims to investigate the impacts of bank capital requirements on the performance and risk of the emerging economy, i.e. Bangladeshi banking sector. Design/methodology/approach ? The study applies an unbalanced panel data which comprises 30 banks yielding a total of 413 bank-year observations over the period 2000 to 2015. Findings ? Using generalized methods of moments, the empirical results of this research reveal that bank capital is positively and significantly impressive on bank performance, whereas negatively and significantly impact on risk. The study also finds the inverse relationship between risk and performance in both the performance and risk equations. The results also indicate that there is a persistence of performance and risk from one year to the next year. Originality/value ? This is the unique investigation on Bangladeshi bank industry that considers the simultaneous effect of bank capital requirements on risk and performance. Therefore, it is predicted that the empirical evidence of this research shows policy implications to the regulatory authority of Bangladeshi banking industry to determine relevant policies.Objetivo - Este estudio tiene como objetivo investigar los impactos de los requisitos de capital bancario sobre el desempe?o y el riesgo de la econom?a emergente, es decir, el sector bancario de Bangladesh. Dise?o / metodolog?a / enfoque - El estudio aplica un panel de datos no balanceado que comprende 30 bancos que arrojan un total de 413 observaciones de a?o bancario durante el per?odo 2000 a 2015. Recomendaciones - Utilizando m?todos generalizados de momentos, los resultados emp?ricos de esta investigaci?n revelan que el capital bancario es positiva y significativamente impresionante en el desempe?o bancario, mientras que tiene un impacto negativo y significativo en el riesgo. El estudio tambi?n encuentra la relaci?n inversa entre riesgo y desempe?o tanto en las ecuaciones de desempe?o como de riesgo. Los resultados tambi?n indican que existe una persistencia de desempe?o y riesgo de un a?o al siguiente. Originalidad / valor - Esta es la investigaci?n ?nica sobre la industria bancaria de Bangladesh que considera el efecto simult?neo de los requisitos de capital bancario sobre el riesgo y el rendimiento. Por lo tanto, se predice que la evidencia emp?rica de esta investigaci?n muestra implicaciones pol?ticas para la autoridad reguladora de la industria bancaria de Bangladesh para determinar las pol?ticas relevantes

Prediction of Outcome of 100 Acute Stroke Patients in a Tertiary Level Hospital

Abstract: Physicians are often facing the task of predicting the immediate and long-term outcome in stroke patients