...Course No. F 618 Course Title: Financial Markets and Institutions Assignment on “Reasons for Share Market Debacle in 1996 & 2010 and Recommendations for Improvement” Submitted to Dr. Jamal Uddin Ahmed Professor Department of Finance University of Dhaka Submitted by Tahasin Monabil Haq ID No. 21005 Table of contents Topics | Page | Acknowledgement | 3 | What is Stock Exchange? , Features of Stock Exchange | 4-5 | Stock Market in Bangladesh, Securities and Exchange Commission | 5-6 | Dhaka Stock Exchange (DSE)& Chittagong Stock Exchange (CSE) | 5-6 | Structure of Bangladesh Stock Market & Settlement | 6-7 | Stock market crash in 1996 | 7-8 | Reasons Behind the Stock market crash in 1996 | 8-9 | Stock market crash in 2010 | 09-12 | Reasons behind share market crash (2010) | 12-15 | Suggestions to improve the activities of Stock Market | 16-17 | Conclusion | 17 | References | 18 | | ACKNOWLEDGEMENT First of all I want to pay my gratitude to the Almighty Allah for helping me in preparing this paper successfully. Secondly, I want to express my gratefulness to our respective faculty, Dr. Jamal Uddin Ahmed, for providing us continuous support and guidelines to prepare a collaborative formal paper. His contribution to us can only be acknowledged but never be compensated. Furthermore, i want to convey my heartiest thanks to my friends and classmates especially who...
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...Paper Subject Management Function performing the Financial Institution (BRAC, EPL) Md. Solayman Assistant Professor Department of Marketing Comilla University Supervised By: Submitted Group: SL.No | ID NO | Name | 1. | 12020745 | Md. Wasim(Group Leader) | 2. | 12020701 | Md.Iqbal Hossain Patwary | 3. | 12020702 | Md. Badiul Alam | 4. | 12020703 | Imtiaz Bulbul Sakey | 5. | 12020704 | Didarul Alam | 6. | 12020709 | Abu Yusuf | 7. | 12020715 | Md. Asif Zaman | 8. | 12020718 | Easir Al Newaz | 9. | 12020730 | Md. Manjur Hossain | 10 | 12020746 | Md. Nasir Uddin | Date of Submission: 10.08.2012 Reference of Task Sl. No. | ID No. | Name | Responsible Task | 1. | 12020745 | Md. Wasim (Group Leader) | Planning and Organizing the Task. | 2. | 12020701 | Md. Iqbal Hossain Patwary | Design and Preparing Title Page, Letter of Transmission, Executive Summery. | 3. | 12020702 | Md. Badiul Alam (Faisal) | Preparing Management Function. | 4. | 12020703 | Imtiaz Bulbul Sakey | Preparing Management Process. | 5. | 12020704 | Didarul Alam | Case study and Data Collection with the help of group leader. | 6. | 12020709 | Abu Yusuf | | 7. | 12020715 | Md. Asif Zaman | | 8. | 12020730 | Md. Manjur Hossain | | 9. | 12020718 | Easir Al Newaz | Compose, Printing, Binding and So on. | 10. | 12020746 | Md. Nasir Uddin | | Letter of Transmittal Date Mohammad Solaiman Assistant professor Department of Marketing Comilla University Subject: Structure of Management under BRAC...
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...TOPIC: THE IMPACT OF WORKING CAPITAL MANAGEMENT POLICIES ON THE PROFITABILITY OF FINANCIAL INSTITUTIONS: A STUDY OF SOME SELECTED FINANCIAL INSTITUTIONS IN GHANA 1.0 INTRODUCTION 1.1 Background: Financial institutions exist to perform the main function of collecting excess monies in the system and advancing them in a form of loan. Hence the bulk of the working capital resource is loan advances and cash received from customers. Again, the influx and/or springing up of financial institutions in Ghana of late has created stiff competition. This situation is likely to make most firms relax their policies on working capital especially on loan advances to customers so as to maintain or increase their market share. This could lead to huge unpaid balances which may put the finances of the companies in danger given the fact that the depositors will one day come for their monies. These can have a telling effect on the cash flow position of the firm which indeed raises an issue of profitability and survival. The management of these core assets is vital to their survival. It is for these reasons that the researcher wants to identify the various working capital strategies used by these financial institutions in dealing with such situations and the consequences of such policies on the profitability of these firms. 1.2 Problem Statement: As the main provider of financial needs, the main debacle of financial institutions is not with the several services and products...
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...Foundations of Financial Markets and Institutions, 4e (Fabozzi/Modigliani/Jones) Chapter 2 Financial Institutions, Financial Intermediaries, and Asset Management Firms Multiple Choice Questions 1 Financial Institutions 1) Financial enterprises, more popularly referred to as financial institutions, provide a variety of services. Which of the below is NOT one of these? A) Transform financial assets acquired through the market and constituting them into a different, and more widely preferable, type of asset–which becomes their liability. B) Exchange financial assets on behalf of customers but not for their own accounts. C) Manage the portfolios of other market participants. D) Assist in the creation of financial assets for their customers, and then sell those financial assets to other market participants. Answer: B Comment: Financial enterprises exchange financial assets both on behalf of customers and for their own accounts. Diff: 2 Topic: 2.1 Financial Institutions Objective: 2.1 the business of financial institutions 2) Financial intermediaries include ________ that acquire the bulk of their funds by offering their liabilities to the public mostly in the form of deposits; insurance companies, pension funds, and finance companies. A) depository institutions B) utilities C) initial public offerings D) preferred equity instrument. Answer: A Diff: 1 Topic: 2.1 Financial Institutions Objective: 2.1 the business of financial institutions 3) Some...
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...Chapter 1 The Financial Services Industry: Depository Institutions Overview • In this chapter, we explore two major depository institution (DI) groups: – Banks, and – Non-bank depository institutions. • We focus on the major characteristics of each group: – Size, structure and composition of industry group, – Balance sheets and recent trends, – Regulation. • In Australia, the Australian Prudential Regulation Authority (APRA) authorises financial institutions to carry out financial intermediation. Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Financial Institutions Management 2e, by Lange, Saunders, Anderson ,Thomson and Cornett Slides prepared by Maike Sundmacher 1-2 Products Sold by the Financial Services Industry • Comparing the products of DIs in 1950 and 2006: – Much greater distinction between types of DIs in terms of products in 1950 than in 2006. – Blurring of product lines and services over time. – Wider array of services offered by all DI types. – Refer to Tables 1.1A and 1.1B in the text. Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Financial Institutions Management 2e, by Lange, Saunders, Anderson ,Thomson and Cornett Slides prepared by Maike Sundmacher 1-3 Banks • Banks are the largest depository institutions in terms of size. • Major difference between banks and credit unions/savings institutions: banks have more varied assets and liabilities. • Differences in operating characteristics and ...
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...Foundations of Financial Markets and Institutions, 4e (Fabozzi/Modigliani/Jones) Chapter 2 Financial Institutions, Financial Intermediaries, and Asset Management Firms Multiple Choice Questions 1 Financial Institutions 1) Financial enterprises, more popularly referred to as financial institutions, provide a variety of services. Which of the below is NOT one of these? A) Transform financial assets acquired through the market and constituting them into a different, and more widely preferable, type of asset–which becomes their liability. B) Exchange financial assets on behalf of customers but not for their own accounts. C) Manage the portfolios of other market participants. D) Assist in the creation of financial assets for their customers, and then sell those financial assets to other market participants. Answer: B Comment: Financial enterprises exchange financial assets both on behalf of customers and for their own accounts. Diff: 2 Topic: 2.1 Financial Institutions Objective: 2.1 the business of financial institutions 2) Financial intermediaries include ________ that acquire the bulk of their funds by offering their liabilities to the public mostly in the form of deposits; insurance companies, pension funds, and finance companies. A) depository institutions B) utilities C) initial public offerings D) preferred equity instrument. Answer: A Diff: 1 Topic: 2.1 Financial Institutions Objective: 2.1 the business of financial institutions 3) Some...
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...returns, the objective of regulators is to determine when risk exposures either become excessive relative to the financial institution’s capital position and financial condition or have not been identified to the extent that the situation represents an unsafe and unsound banking practice. Determination of whether the institution’s risk-management system can measure and control its risks is of particular importance. The primary components of a sound risk-management process are a comprehensive risk-measurement approach; a detailed structure of limits, guidelines, and other parameters used to govern risk taking; and a strong management information system for monitoring and reporting risks. These components are fundamental to both trading and nontrading activities. Moreover, the underlying risks associated with these activities, such as market, credit, liquidity, operations, and legal risks, are not new to banking, although their measurement can be more complex for trading activities than for lending activities. Accordingly, the process of risk management for capitalmarkets and trading activities should be integrated into the institution’s overall riskmanagement system to the fullest extent possible using a conceptual framework common to the financial institution’s other business activities. Such a common framework enables the institution to consolidate risk exposure more effectively, especially since the various individual risks involved in capital-markets...
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...LONDON SCHOOL OF BUSINESS AND FINANCE CREDIT RISK MANAGEMENT OF NON-BANKING FINANCIAL INSTITTUTION IN GHANA (A CASE STUDY OF TF FINANCIAL SERVICES) BY STEPHEN KWADWO NTIRI A Thesis Submitted to the London School of Business and Finance in Partial Fulfilment of the Requirement for the MBA Degree in Financial Services MARCH 2010 DECLARATION I Stephen Kwadwo Ntiri hereby declare that except for references to other people’s work, which have duly been acknowledged, the work presented here was carried out by me, MBA student of Financial Servies at the London School of Business and Finance (LSBF), under the supervision of Randolph Metz-Johnson. I also declare that this work has never been submitted partially or wholly to any other institution for the award of a certificate. …………………………………………… ……………... Stephen Kwadwo Ntiri Date (Student) ………………………………………… …………… Randolph Metz-Johnson Date (Supervisor) Dedication This research project is dedicated to Almighty God for His abundant blessings and protection given me throughout this study, and also to my family for the support I received from them. Acknowledgement I am most grateful to Almighty God who through His infinite mercy and love guided me throughout the duration of the programme. I wish to acknowledge the help and encouragement I got from the entire staff of TF Financial Services, especially Mr. Benjamin Turkson, which has enabled me to complete this work. I also want to thank my wife, Esther Yamoaba...
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...Online Library (wileyonlinelibrary.com) DOI: 10.1002/jid.1639 MANAGEMENT OF MICROFINANCE INSTITUTIONS: DO SUBSIDIES MATTER? MAREK HUDON* ´ libre de Bruxelles, Belgium and Burgundy School of Business, France CERMi, Universite Abstract: It is estimated that donors commit between US$ 800 million and US$ 1 billion to microfinance per year. This paper analyses the management of microfinance institutions (MFIs) and its relationship with donors’ subsidies. The results show that the level of subsidies granted per year is related to the management quality but not the subsidies divided by the gross loan portfolio or the total equity. Well-managed MFIs are larger and regulated organisations but not significantly older. The organisational structure or the experience of the MFI however does not play a role in determining its financial effectiveness, except for cooperatives. Copyright # 2009 John Wiley & Sons, Ltd. Keywords: microfinance; subsidies; management; governance; nonprofit JEL Classification: L31; M54; O16; Q14 1 INTRODUCTION Formal financial institutions have neglected a large part of developing country populations. Considered as high-risk clients, the poor have been denied access to financial services. Microfinance has been praised during the last twenty years as a new development policy tool serving people who have been excluded from the formal banking system. The financial performances of microfinance institutions (MFIs) have been largely highlighted by the international community...
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...A FRAMEWORK FOR PRUDENTIAL REGULATION AND SUPERVISION OF THE FINANCIAL SECTOR BY DR. OWEN JEFFERSON Recent developments in the financial sector has catapulted the issue of the safety and soundness of the financial system into the forefront of discussions in Jamaica. While not necessarily providing any consolation for us, it is important to note that this issue has also been plaguing many other countries and has become a matter of international concern. The number of countries experiencing significant banking problems has increased substantially in recent years - hitting industrial and developing countries alike - and the high costs and macroeconomic disruptions caused by banking crises have become a matter of increasing concern to the international financial community. Not since the Great Depression of the 1930's have so many banks failed as in the 1980's and the 1990's. A recent survey by the International Monetary Fund reported banking problems in 131 of its 181 member countries over this period, ranging from outright systemic crises to isolated causes of failing banks. We all remember the collapse of the Bank of Credit and Commerce International (BCCI) in 1990. There was the much publicised savings and loan debacle in the United States which cost some $150 billion. In Latin America, banks in four countries - Venezuela, Brazil, Mexico and Argentina - have recently had to struggle with crises of varying degrees of severity....
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...Art and Science Management is both art and science. It is the art of making people more effective than they would have been without you. The science is in how you do that. There are four basic pillars: plan, organize, direct, and monitor. Make Them More Effective Four workers can make 6 units in an eight-hour shift without a manager. If I hire you to manage them and they still make 6 units a day, what is the benefit to my business of having hired you? On the other hand, if they now make 8 units per day, you, the manager, have value. The same analogy applies to service, or retail, or teaching, or any other kind of work. Can your group handle more customer calls with you than without? Sell higher value merchandise? Impart knowledge more effectively? etc. That is the value of management - making a group of individual more effective. Basic Management Skill #1: Plan Management starts with planning. Good management starts with good planning. And proper prior planning prevents… well, you know the rest of that one. Without a plan you will never succeed. If you happen to make it to the goal, it will have been by luck or chance and is not repeatable. You may make it as a flash-in-the-pan, an overnight sensation, but you will never have the track record of accomplishments of which success is made. Figure out what your goal is (or listen when your boss tells you). Then figure out the best way to get there. What resources do you have? What can you get? Compare strengths and...
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...STANDARDS OF SOUND BUSINESS PRACTICES CREDIT RISK MANAGEMENT © 2005 The Bank of Jamaica. All rights reserved Bank of Jamaica February 1996 Credit Risk Management Page 2 CREDIT RISK MANAGEMENT A. PURPOSE This document sets out the minimum policies and procedures that each licensee needs to have in place and apply within its credit risk management programme, and the minimum criteria it should use, to prudently manage and control its credit portfolio and exposure to credit risk. Experience indicates that credit quality goes hand in hand with financial soundness. Deterioration in credit quality is often a sign of problems in an institution. The major risk accompanying a weakening of the credit portfolio is the impairment of capital or liquidity. For most institutions, extending credit comprises the major portion of their business. To a great extent, therefore, the quality of an institution’s credit portfolio determines the risk to depositors Credit risk management must be conducted within the context of a comprehensive business plan. Although this document focuses on an institution’s responsibility for managing and controlling its credit portfolio and exposure to credit risk, it is not meant to imply that credit risk can be managed in isolation form asset/liability management considerations, such as the need to maintain adequate liquidity, or other risks. B. DEFINITION Credit is the provision of, or a commitment to provide funds or substitutes for funds (both on-...
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...1 Introduction Banking is an important institution in the economy and plays a very important role in the economic life and economic growth of any society. While it is of common understanding that banking is not “The Economy”, it is agreed that the health of the country’s economy is closely related to the soundness of its banking system which can be sustained through strict regulations and supervision in order to monitor and control business risks such as Capital Risks, Liquidity Risks, Credit Risks, Exchange Risks, Operational Risks, Market Risks and Legal Risks. Bank regulations and bank supervision are required to facilitate a ‘Systematic Risk Reduction’ approach thus reducing the risk of adverse trading conditions and to ensure that Financial Institutions satisfy at least the minimum ‘Prudential’ requirements in order to reduce the risk factor that creditors are exposed to. Lack in regulations and slack in supervision may lead to Financial Institutions risking bankruptcy thus exposing their clients of potentially losing their investments and financial assets while distressing the country’s economy. 2 What is the actual function of a bank within an economy? Banks' traditional role is primarily that of an intermediary for money, i.e. granting loans, processing payments, accepting deposits, carrying out investments, etc... Although banks do not create new wealth, through borrowing, lending and related activities they facilitate...
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...what a bank is, why we have banks and what they do? In your own words, respond to her questions. A bank is essentially a financial institution that acts as a payment agent for customers by providing a wide range of financial services including the acquisition and provision of funds. They are the largest group of financial institutions within a financial system andhence central to facilitating the flow of funds between savers and borrowers. Because of thewide range of services that they provide, most businesses, individuals and governmentsconsider them indispensable. 2.‘Banks have always been the dominant institutions within the financial system, but their relative importance has fluctuated due, in part, to changes in the regulatoryenvironment in which they operate.’ Analyse and discuss this statement. Commercial banks are the main financial institutions operating in all major international financial systems, accounting for the largest share of the assets of all financial institutions. However, their dominance has a direct correlation with the level of financial system regulation that is evident within a nation-state. For example, prior to the mid-1980s there was a high level of bank regulation in most major economies that constrained the development of commercial banks. This high level of regulation led to a wide range of new financial institutions evolving in competition with the commercial banks, hence diminishing the dominance of the banks. These days, however, due...
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...Q1 Describe the role of Financial Institutions. What are the various types of Financial Institutions active in the Indian Financial system ? ANS: Financial sector plays an indispensable role in the overall development of a country. The most important constituent of this sector is the financial institutions, which act as a conduit for the transfer of resources from net savers to net borrowers, that is, from those who spend less than their earnings to those who spend more than their earnings. Financial Institution is not a new concept in financial history. The evolution of financial institutions must be differentiated from economic history and history of money. In Europe, it may have started with the first commodity exchange, the Bruges Bourse in 1309 and the first financiers and banks in the 1400-1600s in central and Western Europe. The first global financiers the Fuggers (1487) in Germany; the first stock company in England (Russia Company 1553); the first foreign exchange market; the first stock exchange. In financial economics, a financial institution is an institution that provides financial services for its clients or members. Probably the most important financial service provided by financial institutions is acting as financial intermediaries. Most financial institutions are highly regulated by government bodies. Broadly speaking, there are three major types of financial institution. 1. Deposit-taking institutions that accept and manage deposits and make loans ...
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