a) Asset-Liability Management practices. b) Credit Risk Management. c) Operational Risk Management. d) Stress testing by Indian Banks in the perspective of international practices. BANKING RISKS: It can be categorized into: i) Business-related Risks. ii) Capital-related Risks. Business Related Risks: The business related risks to which banks are exposed are associated with their operational activities and market environment. They fall into six categories: namely, a)
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Operational Risk Management Interpreting Operational Risk Operational risk is the risk of loss resulting from inadequate or failed internal processes, people, systems and external events. This definition includes legal risk but excludes reputational risk and strategic risk. Therefore, in line with the Basel II risk management framework and best practices, operational risk in the Bank is composed of the following risk types: operations risk, legal risk, regulatory compliance risk, financial crime
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Appendix A BANK ALFALAH LIMITED – BANGLADESH BASEL II DISCLOSURES UNDER PILLAR-III BASED ON 31 DECEMBER 2011 These qualitative and quantitative disclosures have been made in accordance with Bangladesh Bank BRPD Circular no. 10 dated 10 March 2010 and BRPD Circular no. 24 dated 3 August 2010. The purpose is to comply with the requirement for having adequate capital and the Supervisory review process under Pillar II. These disclosures are intended to assess information about the Banks exposure to
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Accord and guidelines. The bank has a unique risk profile and warranted risk-taking discipline. The bank aggressively pursues growth in the large-scale transformational deals. The bank wants to grow aggressively but with balance. As the bank grows, they need to make sure that their risk infrastructure keeps apace with the business opportunities. A consequence for their growth strategy, the bank is facing several risks, such as legal/regulatory risk, credit risk, business risk and operational risk. The
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Basel I The Basel Accords are some of the most influential—and misunderstood—agreements in modern international finance. Drafted in 1988 and 2004, Basel I and II have ushered in a new era of international banking cooperation. Through quantitative and technical benchmarks, both accords have helped harmonize banking supervision, regulation, and capital adequacy standards across the eleven countries of the Basel Group and many other emerging market economies.
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Janata Bank Limited (If there is any contrary information please communicate with DSE through email: listing@dsebd.org) Disclaimer: The contents of this presentation are entirely based on disclosures made by the company. Therefore, DSE does not assume any responsibility on the authenticity of the facts and figures presented thereof. Brief Overview of the Bank 1. Formation of Janata Bank : Immediately after the independence of Bangladesh in 1971, the erstwhile United Bank Limited and Union
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Self audit report 2008 on compliance with Basel Core Principles (BCPs) shows, Operational independence of Bangladesh Bank, supervisory tools, existing prudential regulations for core risk management as introduced in banking industry by BB has developed an environment is favorable for implementing Basel II. Bangladesh Bank (BB) has commenced the implementation of Basel II from January 2009 and has provided banks guideline for computing Minimum Capital requirement (MCR) on the basis of Risk Weighted
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negotiation and implementation of Basel II Accord is likely to lead to an even sharper focus on the risk measurement and risk management at the institutional level. Thankfully, the Basel Committee has, through its various publications, provided useful guidelines on managing the various facets of risk. The institution of sound risk management practices would be an important pillar for staying ahead of competition. Banks can, on their part, formulate early warning indicators suited to their own requirements
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RISK MANAGEMENT DEFINITION OF RISK: 1. Risk in finance is defined in terms of the variability of actual returns on an investment, around an expected return, even when those returns represent positive outcomes. 2. The decisions on how much risk to take and what type of risks to take are critical to the success of the business. 3. The essence of good management is making the right choices when it comes to dealing with different risks. 4. In banking, the risk is the possibility
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run. Islamic banks need to arm themselves with management skills and operational systems to cope with this environment in the face of rapid growth. A weak risk culture has been identified as a hindrance to sustainable growth of Islamic banks by EY World Competitiveness Report 2013. The risks identified by the IFSB Guidelines 2005 were the focus of the study. These include credit risk, market risk, liquidity risk, operational risk, Shariah compliance risk, equity investment risk, rate of return
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