...return. Risk is clearly identified, mitigated or minimized and if possible eliminated to protect capital and to maximize value for shareholders. It is also ensured that on-balance sheet and off-balance sheet risks taken by the Bank are consistent with risk appetite and short term as well as long term strategic objectives of the Bank. A wide range of tools and techniques are used to address & mitigate all kinds of inherent and potential risks in banking operations. The Bank attaches highest priority to establish, maintain and upgrade risk management infrastructure, systems and procedures. In this regard, sufficient resources are allocated to improve skills and expertise of relevant banking professionals to manage the risk effectively. The policies and procedures are approved by the Board and assessed on a regular basis to bring these to the level of satisfaction required to manage & mitigate the risks adequately and consistently. Ultimate responsibility for effective risk management lies with the Board of Directors of DBBL. The Board...
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...“Monetary Policy of Bangladesh” Course Code: Course Title: Macro Economics Submitted to: Submitted by: Date of submission: 15 August, 2012 Table of Contents |Titles |Page Number | |Table of Contents |02 | |Introduction |03 | |Definition of Monetary policy |03 | |Importance of Monetary Policy |03 | |Type of Monetary Policy |04 | |Tools to implement the monetary policy |04 | |Bodies of Monetary Policy |05 | |Monetary Policy in Bangladesh |05 | |Instruments of Monetary policy in BD ...
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...business’s internal control process should address its need to comply with relevant state and federal statutes. Internal control is an integral component of an organization. It is management's job to maintain an effective control system that provides reasonable, but not absolute assurance for effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations. According to the EPPA act employers are required by law to post notices summarizing the protections of the act in workplace areas. If certain laws and regulations such as the EPPA Act are required to be posted in workplaces areas then management’s internal control process need to comply with applicable laws and regulations. In order to stay compliant with relevant laws and regulations management can consult an advisor. 2. Below are policies and procedures used by stores to maintain control over checkout stand operations and the control object: a) Provide a receipt for every transaction. Encourage customers to expect a receipt by posting signs at each register. i) This ensures that the cashier is not over charging the customers. ii) The cashier is handing them back the exact change due. A cashier might hand the customer less change back and at the end of the day pocket the money that his/her draw is over by. b) Put one employee in charge of setting up cash drawers. Have another double- check the cash count. i) This control is to make sure the...
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...intrinsic value because the money would value even if it were not used for money such as gold. Gold has intrinsic value because it can be used in other ways than using it for money. The other type of money is called fiat money that does not have any intrinsic value. It cannot be used for any other purpose than as a medium of exchange such as currency. A central bank or reserve bank is an institution given the authority to manage exclusively a government’s spending and monetary system. The Federal Reserve System or bank is the central bank of the United States and is responsible for managing the country’s monetary system or policy, supervising and regulating the banking system, maintaining stability in the financial market, and provide financial services to depository institutions and the U.S. government. The Federal Reserve manages the monetary system by setting reserve requirements on the amount...
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...System is a banking system of the United States. The Federal Reserve is accountable for the sum of currency and credit in the economy. The Fed can be looked at as like a gatekeeper of the U.S. economy. It is the most powerful organizations on this earth because it watches over the world’s largest economy. Reserves are the credits that a bank contains at the Federal Reserve Bank as well as its money on hand. The key points to hit on are how does the federal funds rate affect the decisions of banks in setting their specific interest rates? How is the federal funds rate changed? How does monetary policy aim to avoid inflation? How does monetary policy control the money supply? As well as what indicators are evident that there is too much or too little money within the economy? The Federal Reserve is trying to keep up with a healthy economy and if the economy gets slow the Fed will make a decision to lower the interest rate in hopes that it will make more money available to businesses, households, and consumers. Many consumer interest rates are influenced by changes made up of the Fed. The part of choosing particular interest rates is the responsibility to the Federal Reserve Board. As the Federal Reserve increases or drops temporary interest rates, banks may increase or decrease the interest rates they charge debtors, together with the main rate. The monetary policy relies on the connection among the rates of interest in an economy, which is the cost at which currency can be loaned...
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...top and in control of this system is the Federal Reserve and its board of governors. The “Fed” has had an interesting history within our country since its creation in 1913. It is the central bank of the United States. It is the third such attempt, and the most successful central bank to be formed in America. The creation of the Fed was initially done to stave off financial panics, but the scope and purview of the Fed has grown over time through the enactment of many laws that give the Fed its power. The main focus of the Fed is to regulate, monitor and control the monetary system within the United States. While the Fed has been in existence in the United States it has not been without critics and proponents. Recently the critics have grown in number thanks to the TARP program in 2008 that provided bailout money to companies deemed too big to fail. While this policy is just many in the long history of the Fed, it has brought much attention to this entity that although sanctioned by the government, actually operates independently with exception to bi-annual reports to Congress. Although the Fed has faced many calls of audits and/or accountability, it has done well in the handling of the nation’s monetary policy through a Great Depression, two World Wars, and countless business cycles of boom and bust. Although the system, while not perfect, is a necessity to maintain the functionality of both our nation’s business, both foreign and domestic, and our monetary policy. History...
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...is clearly identified, mitigated or minimized and if possible eliminated to protect capital and to maximize value for shareholders. It is also ensured that on-balance sheet and off-balance sheet risks taken by the Bank are consistent with risk appetite and short term as well as long term strategic objectives of the Bank. A wide range of tools and techniques are used to address & mitigate all kinds of inherent and potential risks in banking operations. The Bank attaches highest priority to establish, maintain and upgrade risk management infrastructure, systems and procedures. In this regard, sufficient resources are allocated to improve skills and expertise of relevant banking professionals to manage the risk effectively. The policies and procedures are approved by the Board and assessed on a regular basis to bring these to the level of satisfaction required to manage & mitigate the risks adequately and consistently. Ultimate responsibility for effective risk management lies with the...
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...UNIVERSITY OF ZIMBABWE ASSIGNMENT CREDIT POLICY AND STARDARDS June 2014 Lecturer:Mr Samuel Gumbe Student: Rutendo Brian Mawoyo Question: With reference to your organisation or any that you are familiar with, outline the importance of a well articulated credit policy to the credit function. Background Credit is deferred payment and its control is an important feature of business management. In banks clients deposit their money. The bank lends out the money through a credit function. Deposits are collected at say x% and advanced at say x% plus 5% and 5% being the profit of advancing credit. This is how banks operate. Retail shops and wholesalers also sale goods on credit and this generally enables them to achieve higher margins and greater sales. Trade credit generally facilitates trade in the country and internationally. In all these some customers fail to pay back and there have to be effective, economic and efficient ways of recovering debts. Where credit sales or business constitute above 40% of total volume the importance of managing this function well becomes of paramount importance. Introduction Banks are in the business of receiving deposits and lending them out. Retailers, manufacturers and wholesalers offer trade credit. This process ties up money and at the same time these organisations have financial obligations to meet hence there has to be a balance. To achieve...
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...departure and with the Clinical Director have responsibility for managing this requirement.. Main responsibilities: General Management Office Management • Be able to reconcile receipts, day sheets, income reports, bank deposits and the petty cash, and understand the essential components of any reconciling system. . • Be able to set and enforce effective credit control – to include monitoring debtors, sending regular invoices and statements, dealing with overdue account collection and the small claims court, queries on accounts, setting up payment agreements. Be able to complete pet insurance claims and deal with queries. • Be able to deal effectively with day to day banking transactions, e.g. credits, automated credits and debits, standing orders, cash handling, returned cheques etc. Be able to reconcile bank statements. • Have a working knowledge of basic book-keeping procedures – cash book, purchase and nominal ledger, producing the VAT return, monitoring cash flow and profit and loss. Understand a practice P& L balance sheet. • Be able to set up suitable filing and archiving systems for financial, personnel...
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...------------------------------------------------- The Monetary Policy of Bangladesh Introduction The policy adopted by the central bank for control of the supply of money as an instrument for achieving the objectives of general economic policy. With the shifts of the policy stance of the government in various phases, necessary adjustments were made in the country's monetary policy. The principal function of the Department is to help the bank in the formulation of monetary and credit policies and also to assist it in discharging its duty as adviser to the Government on economic and financial matters. To this end, the department keeps the top executives of the bank fully informed of latest economic development both at home and abroad, in a regular and systematic manner. For this purpose the Department keeps a close watch on trends in the domestic economy as well as on international economic developments with particular reference to monetary, fiscal and trade problems and policies. Domestic and international economic developments are brought within the compass of comprehensive reports and reviews which are submitted for perusal of the Governor, Deputy Governor, and Senior Executives of the bank, as also the bank’s Board of Directors. Monetary Policy Monetary policy is the term used by economists to describe ways of managing the supply of money in an economy. Monetary Policy is the management of money supply and interest rates by central bank to influence...
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...Course Title: Accounting Information Systems Course Code: ACC - 406 Course Instructor: Mohammed Sakhawat Hossain Assistant Professor, Faculty of Business & Economics, DIU Group… Assignment on INTERNAL CONTROL & COMPLIANCE FRAMEWORK FOR INTERNAL CONTROL SYSTEMS IN AB BANK Submitted to Mohammed Sakhawat Hossain Assistant Professor Faculty of Business & Economics Daffodil International University Submitted by Group Name: Group…….. Sec: A Batch: 22nd Program: BBA Faculty: Business & economics Daffodil International University ABOUT OUR GROUP ❖ Group Name: ……. ❖ Sec : A ❖ Batch : 22nd ❖ Program : BBA ❖ Faculty: Business & Economics ❖ Group member | | | | | |S:N: |NAME |ID |REMARK | | | | | | |01 |Soma Das |091-11-678 | | | | | | | |02 |Riza Ul Karim...
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...Control Mechanism For Best Buy Joanne Forde MGT/330 March 7, 2011 Dorothy Galiger Control Mechanism For Best Buy An effective control system within any organization must provide detailed information that is both valuable in its measure and consistent in its delivery. Such qualities of a control system are essential for management to harness it for the greater good of the organization. Control systems must be a fluid expansion of the control aspect of the organization’s strategic planning. Best Buy is a good example of a company that utilizes control systems to assist in company operations. These controls are not without their negative consequences, but for the most part, they serve as a beneficial tool for the company in achieving its goals. Control systems specify standards of performance, monitor, and measure company performance, and use data collected to compare the company outcomes to internal standards. Controls also assist in making steps toward continued improvement by reinforcing successful techniques and revising the less successful ones. Best Buy uses four distinct types of controls to maintain and drive the success of their organization: Feed forward control, market control, financial control, and Bureaucratic control. Feed Forward Control is aimed toward preventing problems before they begin by setting standards in place to reduce company loss. For example, Best Buy offers customers a return policy, but only gives cash refund with a receipt or...
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...Reserve Paper The function and purpose of money is very simple; Money is meant to assist trade making life better. The purpose of money, whether it is credit cards, demand deposits or currency, it’s a means of exchange to buy services and goods. It is a known fact that all humans’ beings will accept it and also a tool taken in exchange for something else. Money has three functions in the economy. They are, the store of value which is has value and is transferred from one person to the next when purchasing services or goods, the unit of account which measures the debts and prices, and a medium of exchange which is a universal tool that allows sellers and buyers to trade money in exchange for services and goods. The central bank manages a nations monetary system thru a system we call the Federal Reserve or Fed. The Federal Reserve exercises considerable control over the demand for and supply of balances that depository institutions hold at the Reserve Banks. They manage our nation’s supply of credit and money and operate at the center of the nation’s financial system. They also keeps the wheels of business rolling with coin, currency and payments services, such as check-clearing and electronic funds transfer. The Federal Reserve sells and buys United States government bonds in open-market operations to control the supply and demand of money and make it move toward equilibrium. To decrease the supply of money the Fed sells government bonds that the public pays and oppositely...
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...Monetary policy Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability.[1][2] The official goals usually include relatively stable prices and low unemployment. Monetary theory provides insight into how to craft optimal monetary policy. It is referred to as either being expansionary or concretionary, where an expansionary policy increases the total supply of money in the economy more rapidly than usual, and contractionary policy expands the money supply more slowly than usual or even shrinks it. Expansionary policy is traditionally used to try to combat unemployment in a recession by lowering interest rates in the hope that easy credit will entice businesses into expanding. Contractionary policy is intended to slow inflation in hopes of avoiding the resulting distortions and deterioration of asset values. Monetary policy differs from fiscal policy, which refers to taxation, government spending, and associated borrowing.[3] Overview Monetary policy rests on the relationship between the rates of interest in an economy, that is, the price at which money can be borrowed, and the total supply of money. Monetary policy uses a variety of tools to control one or both of these, to influence outcomes like economic growth, inflation, exchange rates with other currencies and unemployment. Where currency is under a monopoly of issuance...
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...How can emerging economies protect themselves from the rich world’s monetary policy? Source: The Economist Aug 31st 2013 SINCE the beginning of May the Indian rupee has plunged by 23% against the dollar. The Turkish lira fell by 15% in that time, and the Indonesian rupiah by 16%. Headlines warn of a replay of the Asian crisis of the late 1990s. Complaints from emerging-market officials that rich-world monetary experiments are to blame for the trouble look like sour grapes. But new research presented to the world’s top central bankers at their recent gathering in Jackson Hole suggests they may have a point. At issue is how the flood (and ebb) of foreign capital affects economies. The traditional rule has been that countries face a “trilemma”: they must choose between free capital flows, a fixed exchange rate and an autonomous (independent) monetary policy. “The impossible trinity” sounds like new-age theology (religious truth) but simply posits (presents) that an economy can choose at most two of these three. An economy open to free movement of capital can keep a fixed exchange rate, for example, only by subjugating monetary-policy goals to its defence—by raising interest rates sharply, say, when capital outflows put downward pressure on the currency. Yet the trilemma also implies that an economy can enjoy both free capital flows and an independent monetary policy, so long as it gives up worrying about its exchange rate. Emerging-market leaders have long been sceptical...
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