Greenbanking is a new initiative throughout the world. The leading bankers and entrepreneurs have come forward to save human from environmental disasters. In the context of Bangladesh, if we think about it, we will find the situation to be terrible. Our people have little awareness about environment, air and water pollution, industrial and medical, and household wastes. In this way, we can say greenbanking is nothing but an 'eco- friendly socially responsible banking system' which drives the whole nation towards a healthy environment and presents an excellent and hazardless banking. We have selected bankers as the possible sample of this study and have conducted probability stratified sampling technique. The total 60 respondents have been selected by the rules of factor analysis. Factor analysis then has been used to analyze the data and to draw the findings. From the factor analysis, it has been found that three factors namely loan & legal factor, environmental factor, and economic factor are the real influencers. These three factors have consolidated variance of 74.957% of the decision with respect to the appropriation of greenbanking by the commercialbanks to make sure sustainable economic development.
Sharma (2011) in a study named CSR Practices and CSR Reporting in Indian banking sector mention CSR recognizes an organization’s commitment to operate in a socially responsible manner. But CSR activities of developing nations are not so rosy. Particularly in financial sector there is an absence of stringent provisions regarding compliances and reporting CSR.
Bangladesh is one of the most climate change vulnerable countries in the world. As banks indirectly contribute to environmental pollution through investing in different pollutant industries, we need to take steps against all the wrong doing. Bangladesh Bank which has the legal power to shape the behavior of the banks, it will have to force all the banks to implement greenbanking policy to curb its own environmental pollution, giving loans to environmentally friendly projects and reducing investment in environmentally harmful projects. Government should also encourage the general people about the greenbankingpractices. The central bank should also monitor commercialbanks whether they are practicing greenbanking or not. Thus greenbanking can play a significant role in implementing the broader concept of sustainable economic development.
threat, the financial sector of Bangladesh is playing a key role as one of the important stake-holders of the economy enforcing the businessmen/ industrialists of the country to design their various strategy/action plans keeping in mind the crucial environmental issues. Greenbanking (GB) is a component of the global initiative by a group of stakeholders to save the climate/environment. In this study it is tried to find out the present status of greenbankingpractices. In doing so a comparative analysis has been initiated among different types of banks [State- owned CommercialBanks (SCBs), State-owned Special- ized Development Banks (SDBs), Public CommercialBanks (PCBs) and Foreign CommercialBanks (FCBs)] in operation in Bangladesh to see whether they adopted greenbanking policy guided by Bangladesh Bank (BB). The study concluded that only PCBs, FCBs have adopted greenbanking guideline and financed some of greenbanking based projects on the other hand SCBs and SDBs initiatives are not remarkable. 5
In a more developed market, institutional investors such as merchant banks, commercialbanks, insurance companies, are major traders of securities. Merchant banks are considered as the original banking institutes which have been started during the middle ages. With the evolution of economic terms and practices, merchant banking services were differentiated from ordinary banks which provide services to common people as well as organizations, but merchant banking serves a number of needs and requirements of organizations and businesses. The fact that, merchant banks are the wholesale banks specifies the use of these banks for some important purposes. Today, merchant banks are regarded as the banks of corporate house and organizations.
There is no argument over the fact that effective delinquency management is the precondition for effective commercial bank management. This is the reason why delinquency management in terms of credit assessment, credit documentation, and non-performing portfolio monitoring and controlling are strongly highlighted in most of the commercialbanks around the world. In Bangladesh, private commercialbanks were facing serious problems with loan recovery for a variety of reasons, lack of financial discipline and outright breach-of-contract cases etc. Non-performing loans (NPLs) are increasing day by day which in all cases are higher as compared to the international standard of five percent. The effect of this is may be reflected in a reduction in the bank soundness, a situation likely to affect the long-term survival of the bank. In order to make profits and reduce nonperforming portfolios in commercialbanks, they need efficient delinquency management tools results in low default rates and continued survival in the competitive market. Despite such a prevailing phenomenon of NPLs in Bangladesh, there is a little study that investigates the contributing factors leading to NPLs. However, there is a little empirical study to examine delinquency management practices, causes, and strategies for improving delinquency in commercialbanks in the context of Bangladesh.
rates of return for the shareholders of bank whereas NIM is used both as profitability and efficiency measures. Shah and Jan (2014) studied on the private banks in Pakistan. They collected secondary data of 10 private commercialbanks of Pakistan from the financial statement of the banks. They considered ROA and interest income as dependent variables and bank size, asset management and operational efficiency as the independent variables of the study. Their results from regression and correlation analysis suggested that ROA and net interest income had positive relations with both bank size and asset management but negative relations with operational efficiency. Petria et al. (2015) conducted a study on EU 27 banking system to find on the determinants those have significant impact on the profitability of the banks. The determinants were segmented into bank specific or internal factors and industry-specific and macroeconomic or external factors. Bank size, credit risk, capital adequacy, management efficiency, business mix indicator and liquidity risk were used as internal factors whereas market concentration, economic growth and inflation considered as external factors throughout the study. The findings of their analysis concluded that credit and liquidity risk, management efficiency, diversification of business, market competition and economic growth had significant influence on return on average asset and return on average equity. Ramlan and Adnan (2016) investigated the conventional and Islamic banks in Malaysia to find out the effect of independent variables (total equity to total asset, total loans to total asset and deposit to total asset) on the profitability of the banks which were measured by ROA and ROE. They used T-test model, regression and correlation as statistical tools for the analysis. The results
The Banks of Bangladesh are now performing the CSR activities significantly. Even, the Banks are trying to create their image by this type of activities. Each year huge amount of money has been spent by the banking sector of this country to serve the society in various sides. The main fact is that there are no appropriate guidelines for the disclosure in reporting. The Banks should have enough policy to make this operation successfully and appropriately. Bangladesh has many political as well as social violence problems. The Government cannot always tackle this simulation’s singly; the Business as well as the Banking sector also should contribute in the development of this situation. Banks are disclosing the actual information’s to prepare a correct financial statement, from which the bank can get significant help in the time of auditing and it also remains clear in the eyes of customers. Though Banks are now practicing the CSR activities significantly but still there are some Banks which are not so much engaged in these activities. Bank’s have their existence only because of their clients. Government should take to update the Company Act 1994 and the Bank Companies Act 1991 for the better CSR disclosures. We propose much research is needed to discover the implementation of CSR disclosures in financial reporting.
[Shahzeb Ali Malik based on Dyche‟, 2002,] the use of CRM in the banking marketing is needed to orientate the bank on financial performance (the high profit and quality/price ratio) in a determinant environment. For this, Manol Simo, Magdalena Bregasi – Customer Relationship Management and Challenging Aspects in the Banking Sector: Case of Albania Performance in the Context of Gender among Albanian Students( European academic research, vol. i, issue 4/ july 2013 485) crm components are related with good information about banks‟ customers, their habits, their profiles and the types of services they use. The cultural component of services is another component that orientates continuously the knowledge of customers‟ needs. All components can contribute on the opportunities and the filling of gaps for a durable and profitable life-long relationship. The opportunities and problems of CRM implementation are also related to the asymmetry information and the level of technology used.
Green Human Resource Management has been the buzzword since the last few decades but least was known about its real implications on the organizational context. The objective of this paper is to simply put the Green HRM thoughts into actions instead of providing extensive insights on it which already exists. Hence, the study has been carried out to find out the level of engagement to the Green HRM practices by a sample of 30 commercialbanks operating in Bangladesh. Since there is a strong tie between HRM (being the strategic partner within the organization) and organizational environmental performance, this study tries to clarify the extent to which traditional HRM practices is reflected through the touch of greenpractices in each functions: job analysis, recruitment, selection, induction, performance appraisal, and reward management; and their contributions to the environmental sustainability. The findings of the study encompass the level of green HRM practices adopted by the banking sector of a developing country where the most of the companies sampled are familiar with the Green HRM but the practices are less than what is required. This study also found that, the adoption of Greenpractices has a positive relationship with increased organizational performance and helps promote organization’s image. It is expected that the study would help the industries to gain a grasp on how to turn traditional HRM practices into Green ones in order to reap the fruits of Green HRM in this 21st century.
Abstract: The development of electronic banking, especially internet banking has changed the relationship between the banks and its customers and has made the banks efficient which includes savings, improved marketing and communications, offer services regardless of geographic area, time and increased customer base. This empirical research study mainly focuses on investigating the major factors that influence u sers’ perception towards internet banking service in Bangladesh. The existing literature was reviewed to discover reasons that would influence customers positively or negatively towards internet banking service. A structured questionnaire with 5-point Likert scale has been used to collect the data by conducting survey. The sample size is 170, chosen on a convenient basis. Data has been analyzed by using SPSS software (version: 17). From the findings, it was found that respondents use internet banking because they believe it is conveniently accessible to them and the conveniently accessible term includes elements such as webpage loading, ease of navigation, easy login process, website information, product features, transaction information, easy access and 24/7 internet banking. In contrast, along with the mind-sets of respondents, trustworthiness of internet banking, customer data privacy, reliability of internet banking service, integrated security elements, secure communication, latest encryption technology and freedom from danger/fraud are the foremost barriers of internet banking in Bangladesh. Furthermore, the result of hypotheses established that even though internet banking is conveniently accessible to all consumers in the present ICT environment, trust and security anxieties have significant impact on internet banking. Finally, some recommendations have been offered for higher authority of banks to take initiatives for making internet banking more admirable and trustworthy.
The term GreenBanking is a new concept in Bangladesh, though the idea is not new. It has shifted the profit maximization goal of banks to ‘planet, people and profit goal’. In Bangladesh, the banks are categorized as FCBs-Foreign CommercialBanks, PCBs- Private CommercialBanks, SCBs- State owned CommercialBanks, SDBs- the Specialized Development Banks. Bangladesh Bank – has issued the GreenBanking Guideline in 2011 which is a mandatory policy guideline for all the scheduled Banks operating in the country. This study focuses on how the phase-wise action plan is applicable for all banks operating in Bangladesh are coping up to meet the target within the stipulated deadline. It is found that the SCBs and SDBs are showing constantly poor performance in adopting the idea. It is also mentionable that recently the focus is more on direct green financing to indirect green financing. Some banks are welcoming the idea of ‘going green’ whereas others are still in the dilemma in taking the challenge.
Greenbanking, considered as sustainable bankingpractices, has created incessant buzz among banks and financial institutions which are consistently seeking an exhaustive framework to sustain in dreadful environmental changes. Attachments to green strategies upraise customers’ interests and expectations on enterprises’ environmental responsibilities. The article dwells on addressing the factors impacting customers’ expectations towards greenbankingpractices from the perspective of banking industry in Bangladesh. Total 246 samples have been finalized from target population using simple random sampling. The survey has used five (5) point Likert scale and 23 dimensions are identified which are summarized into five factors by using factor analysis. After analysis, it has been found that information availability and customer needs, spirit of ethics and high yield savings, energy efficiency, product benefits as well as integration and personalization- these five prominent factors are responsible for influencing customers’ expectations towards greenbankingpractices in Bangladesh. The study offers an insight into what banks should do, being environmentally proactive, to create a strong customer base in future.
This study is originated to investigate the profitability performance of state-owned commercialbanks (SCBs) of Bangladesh with respect to bank specific and economy specific determinants. According to Economic Review of Bangladesh (2015), there are six state-owned commercialbanks working in Bangladesh economy. Nevertheless, in real sense three banks i.e; Sonali, Agrani & Janata Bank are mainly concerned with commercialbanking from government source. Rupali Bank Ltd (Government share- 90.19% & Public share- 9.81%) has been excluded for data heterogenety. BASIC Bank Ltd is mainly a specialized bank for SME development and this institution is changed with huge financial scandals in recent years. On the other hand, Bangladesh Development bank is a recently merged corporation of previous Bangladesh Shilpo Bank (BSB) and Bangladesh Shilpo Rin Sangsta (BSRS). Therefore, for data consistency Rupali Bank, BASIC Bank and Development Bank have been excluded from the sampled banks. This study has used secondary quantitative financial and economic data. Data has been considered for 8 years from the year of 2007 to 2014. Bank specific data have been from annual reports of respective SCBs. Economy specific data have been collected from Economic Review of Bangladesh (2015). Along with these sources, previous literatures, lectures and relevant workings & websites were viewed for secondary data. Variables Considered
In the 1990s, however, a broad based financial measure was undertaken in the name of FSRP 4 , enlisting the help of World Bank to restore financial discipline to the country. Since then, the banking sector has adopted “prudential norms” for loan classification and provisioning. Other laws, regulations and instruments such as loan ledger account, lending risk analysis manual, performance planning system, interest rate deregulation, the Money Loan Court Act 1990 have also been enacted to promote sound, robust and resilient banking practice. Surprisingly, even after so many measures, the banking system of Bangladesh is yet to free itself from the grip of the NPL debacle. The question thus arises, what are the reasonsbehind such a large proportion of nonperforming loans in the economy of Bangladesh? Is it because of “flexibility in defining NPLs” or lack of effective “recovery strategies” on the part of the banks? Alternatively, is it due to poor enforcement status of laws related to nonperforming loans? The present study has concentrated on the above issues mainly with a view to assisting policymakers to formulate concrete measures regarding sound management of NPLs in Bangladesh.
Shang and Shu Fanglin (2010) attempts to investigate the importance of people driven process of CRM in organization and identify factors affecting the effectiveness of people driven CRM Processes. Four depending factors viz customer’s emotional needs, customer involvement, employee’s capabilities and organizational customer oriented culture identified as likely factors affecting the effectiveness of people driven processes were found to be statistically significant. Lindergreen and Antioco (2005) made a casestudy that reveasls some key issues in a good CRM implementation within the banking sector. Personalized attention was found to be an important variable but frequent personalized messages was found to have a negative impact on the result of a good CRM. Research found four major quality drivers viz: product usability, service strategy, service environment and service delivery. Various researchers have found various quality drivers in their studies which have contributed to the present researcher to find set of independent variables for the present research. Kim et al. (2006) attempts to identify the effects of five factors of Service Quality on customer satisfaction and repurchase intention for spectators. Factors considered were tangibles, reliability, responsiveness, assurance and empathy. Considering five factors as independent variables and customer satisfaction as dependent variable; it was found that factors of reliability and assurance were the most influential factors on overall customer satisfaction.
In today’s changing world the business environment is changing rapidly. The emergence of e-commerce and development of information and technology plays a significant role in the nature of work as well as their attitude towards the organization. We have been experiencing a tremendous growth in banking sector of Bangladesh during the last decade of the twentieth century. Private commercial bank plays a vital role in the overall development of our economy. Though it is a challenging profession, people working in this sector have increased notably during last few years. In recent time banking sectors have become the first choice for career development. In consideration of that factor, this study investigates job satisfaction among employees of all public and private commercial bank limited. The research method used an anonymous survey that was voluntarily completed and returned to the researcher. The study determined that morale and job satisfaction plays a vital role in overall performance of the employees in the workplace. The study also determined that social status, supportive colleagues and feeling secure about the job were the top three best reasons for working in the banks. It was also determined that pay, decision making authority, and promotional policy were the three top priorities for improving the work environment.
Rose, Peter S. (2001) examined that for most banks, loans are the largest and most obvious source of credit risk; however, other sources of credit risk exist throughout the activities of a bank, including in the banking book and in the trading book, and both on and off the balance sheet. Banks are increasingly facing credit risk (or counterparty risk) in various financial instruments other than loans, including acceptances, interbank transactions, trade financing, foreign exchange transactions, financial futures, swaps, bonds, equities, options, and in the extension of commitments and guarantees, and the settlement of transactions.
The paper is about risk management practices of commercialbanks in Bangladesh based on five commercialbanks operating in Bangladesh. The number of respondents was 25, five from each bank. While collecting the requisite data, five points Likert Scale has been used. The objective of the study was to critically examine risk management practices of Bangladeshi banks i.e., types of risk facing a bank, procedure and techniques used to minimize the risk etc. The study also examines how far the banks follow the guidelines of Bangladesh Bank regarding risk management. The study reveals that credit risk, market risk and operational risk are the major risks to the bankers which are managed through three layers of management system. The Board of Directors performs the responsibility of the main risk oversight, the Executive Committee monitors risk and the Audit Committee oversees all the activities of banking operations. In the context of opinions regarding use of risk management techniques, it is found that internal rating system and risk adjusted rate of return on capital are relatively more important techniques used by banks.
Banks have good reason to worry about risk management; they continue to be caught by dramatic turns in the economic cycle that arrive without much warning. Even if these turns could be predicted in advance, many activities are not yet liquid enough to remove or hedge the risk. The recent crises in Asia and emerging markets indicate that banks worldwide continue to have difficulty in dealing with illiquidity. Moreover, they appear to be caught in a vicious cycle that moves between rapid growth in the ‘good’ times and virtual standstill when a crisis hits home. To break through this cycle, banks need to adopt a more structured and top-down approach to risk management. The challenge is to make strategic decisions on the desired shape of the institution and ensure that there is a sound balance between businesses such as wholesale and consumer banking. Typically, the decision to participate in a particular business and allocate resources to that business assumes a large part of the risk. Once that decision is made, the bank should be prepared to incur stress related losses from time to time. As long as the risk profile is in balance and well diversified, the institution can absorb these as part of its normal business. Once the risk appetite has been defined, the focus shifts to day-to-day decision making. To support the lines of business and front-line staff in this process, banks are increasingly adopting risk- adjusted profitability measures.