Welcome

to
my Presentation
 Presentation
on
sustainable growth rate
 Introduction
Introduction: this assignment attempted to highlight problems in Banking sectors,
sustainable growth rate,. Included how banking steady in 2016. ). Bangladesh has
improved in its economic sectors in recent years. The changes in governments have
created lots of problems in the economic growth rate of the country. The problems
in the banking sectors have arisen mainly from this problem. The Governmental
decisions also have huge impact on the banking problems in Bangladesh
Problem of the Banking Sector of
Bangladesh
 Problem of banking sector is widespread and is not related to banking system only. The
regulatory entity should be independent but accountable. Prudential regulation should
be limited to deposit-taking institutions and should be clearly separated from non-
prudential regulation. The problem of lower profitability of bank is that it might reduce
the tax and thus make a trace on fiscal system where bank is the number one source of
tax under large tax unit of NBR. Moreover, the revenue target may face hurdle from
another side where lower growth of credit may affect investment and growth, and thus
tax collection
Banking sector for sustainable growth

 Bangladesh's financial sector is dominated by the banking sector. The

dominance of the banking sector makes the financial sector vulnerable on the
one hand, but highlights the crucial importance of the sector in resource
mobilization and economic growth, on the other. The role of the banking
sector in accelerating growth is contingent upon the soundness and depth of
the sector. In Bangladesh the banking sector has travelled through a journey
where the sector has experienced several ups and downs. Reforms measures
have been undertaken in an attempt to improve upon the structural
constraints of the sector.
 Such measures have been driven by objectives such as increasing the capital
adequacy of banks, streamlining guidelines for rescheduling of various types
of loans, tightening provisions for non-performing loans, strengthening
disclosure requirements and improving accounting system. These have
undoubtedly improved the soundness of the sector over the years. However,
the performance of the banking sector in the recent past has not been
satisfactory. At present, key performance indicators of commercial banks in
the country reflect the poor health of banks. Most banks have not been able
to show significant improvements on indictors such as capital to risk weighted
asset, non-performing loans, expenditure-income ratio, return on asset,
return on equity, liquid asset and excess liquidity despite several measures
taken by the central bank.
Despite anemic performance of the sector, governance
in banks still remains a distant reality. Concerned
authorities have been slow to take action against the
identified people for embezzlement of money from
banks. The Hallmark group has not returned any
money to the bank till now. More frustrating is that
bank authorities do not even expect to get back the
misappropriated money. These incidences have
affected the effectiveness of various measures taken
to improve the governance of the banking sector.
Flexible measures, including loan rescheduling
policy favoring powerful people and lack of
punishment for fraudulence in banks have worsened
the situation. The oversight mechanism has clearly
been less effective
 Shocks in the banking sector and emerging challenges require further reforms for
improvement of governance in the sector. In view of this there is a need for setting up a
commission for the financial sector. The commission will scrutinize the overall
performance of the sector, assess the need of customers and the economy, identify the
current problems and emerging challenges and suggest concrete recommendations for
prudential banking to be implemented in the short to medium terms. Considering the
emerging need and in order to build up more transparent and responsible banking sector
the commission can also include non-bank financial institutions, such as insurance
companies and capital market under its jurisdiction as they are interconnected.
 The banking sector has achieved considerable success due to the reforms in the 1990s,
2000s and afterwards. However, the sector will have to prepare for the next generation
of global regulatory framework and meet emerging clients' needs. In the coming days,
the banking industry will have to achieve the ability to absorb shocks arising from
financial and economic stress, improve risk management and governance, and
strengthen banks' transparency and disclosures. And if the sector has to play the larger
role of contributing towards a stable and sound macroeconomic situation, the banking
sector has to go through the painful path of stricter policy and legal measures
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