BIBM (Bangladesh Institute of Bank Management)

Synopsis

Immediately after the independence in 1971, the new government of Bangladesh started reorganization of the banking sector and creation of efficient banking professionals. The government recruited a total of 1,000 fresh bank officers through a Bankers' Recruitment Committee. But there was no infrastructural facility to train them.

An 11-member Task Force was assigned the responsibility of tackling the problem. Members of the Task Force were sent to India where they received training from the National Institute of Bank Management at Pune. After their return from India, they recommended setting up a training institute for bankers in Bangladesh. Accordingly, BIBM was established. The institute started functioning in a rented house under the administration of a board of directors consisting of the managing directors of nationalized commercial banks and specialized banks. The governor of bangladesh bank was made the ex-officio chairman. The director general is the chief executive of the institution.

BIBM conducts various types of short-term training programmes and arranges seminars/workshops and conferences. In 1997, it introduced a two-year Masters in Bank Management (MBM) programme. The institute has been publishing a quarterly journal, Bank Parikrama, since 1976, and a bi-monthly BIBM Bulletin on a regular basis.

Up to 2007, BIBM provided training to 51,873 personnel of different banks in Bangladesh. The list of training courses run by the institute includes credit management, corporate planning, international trade financing, investment banking, lending risk analysis, project financing, trainers' training, agricultural financing and rural development, management of human resources, computer operations in banks, computer programming, operations research in banks, and bank research method.

The institute conducts about 35 training courses each year, ranging from 10 to 15 days each. It also conducts a 40-day Advance Course on Bank Management for mid-level executives of banks and financial institutions. This programme has recently been renamed as the Senior Bankers' Staff Course. The institute introduced an Out-reach Training Programme at divisional headquarters in 1999. A 32-member teaching team offers courses at the institute.

Members of the Institute

Ordinary Members

Associate Members

01

Bangladesh Bank

01

The City Bank Ltd.

02

Sonali Bank Ltd.

02

The Oriental Bank Ltd.

03

Janata Bank Ltd.

03

BASIC Bank Ltd.

04

Agrani Bank Ltd.

04

State Bank of India

05

Rupali Bank Ltd.

05

Habib Bank Ltd.

06

Pubali Bank Ltd.

06

Prime Bank Ltd.

07

Uttara Bank Ltd.

07

Dhaka Bank Ltd.

08

Bangladesh Krishi Bank

08

Investment Corporation of Bangladesh

09

Bangladesh Shilpa Bank

09

Southeast Bank Ltd.

10

Bangladesh Shilpa Rin Sangstha

10

Social Investment Bank Ltd.

11

AB Bank Ltd.

11

Standard Bank Ltd.

12

National Bank Ltd.

12

Bangladesh Commerce Bank Ltd.

13

Eastern Bank Ltd.

13

Export Import Bank of Bangladesh Ltd.

14

United Commercial Bank Ltd.

14

Trust Bank Ltd.

15

Islami Bank Bangladesh Ltd.

15

BRAC Bank Ltd.

16

IFIC Bank Ltd.

16

Bank Asia Ltd.

17

Rajshahi Krishi Unnayan Bank

17

The Premier Bank Ltd.

18

Standard Chartered Bank

18

Jamuna Bank Ltd.

19

Dutch Bangla Bank Ltd.

19

Shahjalal Islami Bank Ltd.

20

Mercantile Bank Ltd.

20

The Hongkong and Shanghai Banking Corporation Ltd.

21

One Bank Ltd.

21

Karmasangsthan Bank

22

Al-Arafah Islami Bank Ltd.

22

Woori Bank Ltd.

23

National Credit and Commerce Bank Ltd.

23

First Security Bank Ltd.

24

Commercial Bank of Ceylon Ltd.

25

Mashreqbank psc

26

Bank Alfalah Ltd.

27

Mutual Trust Bank Ltd.

Fellow Member

Dr. Mohammad Sohrab Uddin

Former Deputy Governor

Bangladesh Bank

Governing Board and Executive Committee

Governing Board

Chairman: Governor, Bangladesh Bank

Members:

01

Deputy Governors, Bangladesh Bank

02

CEO/Managing Director, Sonali Bank Ltd.

03

CEO/Managing Director, Janata Bank Ltd.

04

Managing Director & CEO, Agrani Bank Ltd.

05

Managing Director, Rupali Bank Ltd.

06

Managing Director, Pubali Bank Ltd.

07

Managing Director, Uttara Bank Ltd.

08

Managing Director, Bangladesh Krishi Bank

09

Managing Director, Bangladesh Shilpa Bank

10

Managing Director, Bangladesh Shilpa Rin Sangstha

11

Managing Director, AB Bank Ltd.

12

Managing Director, National Bank Ltd.

13

Managing Director, Eastern Bank Ltd.

14

Managing Director, United Commercial Bank Ltd.

15

Executive President, Islami Bank Bangladesh Ltd.

16

Managing Director, IFIC Bank Ltd.

17

Managing Director, Rajshahi Krishi Unnayan Bank

18

Chief Executive Officer, Standard Chartered Bank

19

Managing Director, Dutch Bangla Bank Ltd.

20

Managing Director, Mercantile Bank Ltd.

21

Managing Director, One Bank Ltd.

22

Managing Director, Al-Arafah Islami Bank Ltd.

23

Managing Director, National Credit and Commerce Bank Ltd.

24

Professor Dr. Iftekher Ghani Chowdhury, Dean, BRAC Business School, BRAC University, Dhaka.

Member-Secretary:Director General, BIBM

Executive Committee

Chairman: Deputy Governor, Bangladesh Bank

Members:

01

CEO/Managing Director, Janata Bank Ltd.

02

Managing Director, Bangladesh Krishi Bank

03

Managing Director, Al-Arafah Islami Bank Ltd.

04

Managing Director, United Commercial Bank Ltd.

05

Professor Dr. Iftekher Ghani Chowdhury, Dean, BRAC Business School, BRAC University, Dhaka.

Member-Secretary: Director General, BIBM

Director and Faculty Members

Director General

Mohd. Ruhul Amin

MBA, MPA (Harvard)

(Former Deputy Governor, Bangladesh Bank)

Faculty Members

01

Dr. Bandana Saha

B.A (Hons.) M.S. Ph.D. (Economics, U.S.S.R)

Professor and Director (Admin and Accounts)

E-mail: office HYPERLINK "mailto:[email protected]" @bibm-bd.org

Phone: 9003031-35, 9003051-2 (Ext-112),

9003844 (Office), 8621952 (Residence)

02

Dr. Toufic Ahmad Choudhury

B.Sc. (Hons.), M.Sc. Ph. D. (Economics, India)

Professor and Director (CPGS)

E-mail: [email protected], [email protected]

Phone: 9003031-35, 9003051-2 (Ext-104),


03

Dr. Prashanta Kumar Banerjee

B.Com. (Hons.), M.Com. (Accounting),

Ph. D. (Finance, India), PDF (USA)

Associate Professor and Director

(Research, Development and Consultancy)

E-mail: [email protected]

Phone: 9003031-35, 9003051-2 (Ext-102) (Office),

01711-172273, 01552-638376 (Cell Residence )

04

Dr. Shah Md. Ahsan Habib

B.A. (Hons.), M.A. (Economics),

Ph.D (International Finance, India)

Associate Professor and Director (Training)


Phone: 9003031-35, 9003051-2 (Ext-114) (Office),

05

Syed Ahmed Khan

B.A. (Hons.), M.A. (Economics),

M.A (Banking and Finance, UK),

Former GM, Bangladesh Bank

Faculty Member (on Contract)


Phone: 9003031-35, 9003051-2 (Ext-119),

9003921(Office), 9354136 (Residence),

06

Abed Ali

B.Com (Commerce), M.Com (Management)

Former GM, Bangladesh Bank



Phone: 9003031-35, 9003051-2 (Ext-205),

01915164363(Cell)

07

Md. Atiar Rahman Mollah

B.Com. (Hons.), M.Com. (Accounting), DAIBB

Former DGM, Agrani Bank,



Phone: 9003031-35, 9003051-2 (Ext-113),

9002369 (Office),9009501(Residence),

01553-339955 (Cell)

08

Quazi Golam Morshed Farooqi

B.A. (Hons.), M.A. (Economics), PGDIM (BIM)

Former SVP, The Premier Bank Ltd.,


E-mail:

Phone: 9003031-35, 9003051-2 (Ext-218) (Office),

8122748 (R), 01718-930977 (Cell)

09

Sk. Harun-ar-Rashid

B.A. (Hons.), M.A.(Economics),

M.D.S., (The Netherlands)

Senior Associate Professor


Phone: 9003031-35, 9003051-2 (Ext-228),


10

Abdul Jalil Choudhury

B.Sc. (Hons.), M.Sc. (Soil Science), MBA (Finance),

DCA (BIBM)

Associate Professor

E-mail: office HYPERLINK "mailto:[email protected]" @bibm-bd.org

Phone: 9003031-35, 9003051-2 (Ext-220),

01711287044 (Cell)

11

Fahmida Chowdhury

B.Com. (Hons.), M.Com. (Management)

Associate Professor


Phone: 9003031-35, 9003051-2 (Ext-202) (Office)

12

Md. Shihab Uddin Khan

B.Sc (Honors in Applied Physics and Electronics)

M.Sc. (Computer Science), MCP

Assistant Professor


Phone: 9003031-35, 9003051-2 (Ext-201) (Office),

9003717 (Residence),

13

Md. Nehal Ahmed

B.Sc (Hons.), M.Sc. (Statistics), MBA (Finance)

Assistant Professor


Phone: 9003031-35, 9003051-2 (Ext-203) (Office),

01819-412886 (Cell)

14

Md. Mohiuddin Siddique

B.S.S. (Hons.), M.S.S. (Economics),

M.A. (Economics, Japan), DCA (BIBM)

Assistant Professor


Phone: 9003031-35, 9003051-2 (Ext-206) (Office),

01715-194175 (Cell)

15

Md. Mahbubur Rahman Alam

B.Sc. (Hons.), M.Sc. (Statistics), Dhaka University

PGDICT (BUET)

Assistant Professor

E-mail: [email protected] [email protected]

Phone: 9003031-35, 9003051-2 (Ext-222) (Office),

01556-323244 (Cell)

16

Kaniz Rabbi

B.Sc. (Hons.), M.Sc. (Computer Science)

Assistant Professor


Phone: 9003031-35, 9003051-2 (Ext-217) (Office)

17

Sk. Nazibul Islam

B.Com (Hons), M.Com (Management), B.Ed, DAIBB

Senior Principal Officer, Bangladesh Krishi Bank,

Faculty Member (on Deputation)


Phone: 9003031-35, 9003051-2 (Ext-204) (Office),

8119385 (Residence), 01711-369127 (Cell)

18

Tanweer Mehdee

B.S.S (Hons.), M.S.S (Economics)

Lecturer


Phone: 9003031-35, 9003051-2 (Ext-213) (Office),

8611385 (Residence)

19

Md. Masudul Haque

B.Com (Hons.), M.Com (Mgt.), DAIBB

Lecturer


Phone: 9003031-35, 9003051-2 (Ext-219) (Office),

7291827 (Residence), 01199-068206 (Cell)

20

Md. Alamgir

B.Sc (Civil Engineering BUET ),

MBA (Finance IBA), MBM (BIBM), DAIBB

Lecturer


Phone: 9003031-35, 9003051-2 (Ext-227) (Office),

01716-061773 (Cell)

21

Mohammad Shafiullah

BBA (Finance and Banking), MBA (Finance, DU)

Lecturer


Phone: 9003031-35, 9003051-2 (Ext-225) (Office),

01712-251225 (Cell)

22

Md. Mahabbat Hossain

BBA, MBA (Accounting)

Lecturer


Phone: 9003031-35, 9003051-2 (Ext-216) (Office),

01716-373565 (Cell)

24

Atul Chandra Pandit

BBA, MBA (Accounting & Information System, DU)

Lecturer


Phone: 9003031-35, 9003051-2 (Ext-223) (Office),

01712-209694 (Cell)

23

Kazi Baha Uddin

B. Sc. (Hons), M. Sc. (Computer Science), MCP

Lecturer


Phone: 9003031-35, 9003051-2 (Ext-215) (Office),

8020628(Residence), 01726-559373 (Cell)

25

Md. Mosharref Hossain

BBA (Finance and Banking), MBA (Finance)

Lecturer


Phone: 9003031-35, 9003051-2 (Ext-224) (Office),

01720-503668 (Cell)

26

A. N. K. Mizan

BBA, MBA (Finance and Banking)

Lecturer


Phone: 9003031-35, 9003051-2 (Ext-214) (Office),

01718-880766 (Cell)

27

Md. Shahid Ullah

BBA, MBA (Accounting)

Lecturer


Phone: 9003031-35, 9003051-2 (Ext-221) (Office),

01718-065730 (Cell)

28

Md. Ruhul Amin

BBA, MBA (Finance, DU)

Lecturer


Phone: 9003031-35, 9003051-2 (Ext-108) (Office),

01712-292910 (Cell)

29

Mahmood-ur-Rahman

BSS, MSS (Economics, DU)

Lecturer

E-mail:

Phone: 9003031-35, 9003051-2 (Ext-124) (Office),

8627261(Residence), 01731-662241 (Cell)

30

Md. Zakir Hossain


Lecturer


Phone: 9003031-35, 9003051-2 (Ext-103) (Office),

01818-407870 (Cell)

31

Tahmina Rahman


Lecturer


Phone: 9003031-35, 9003051-2 (Ext-123) (Office),

01199434647 (Cell)

Research & Consultancy

Consultancy

BIBM often conducts recruitment tests of different level bank officers on request of banks. In addition, faculty members of the institute undertake a number of research consultancy projects every year in the area of banking, finance and allied field. Faculty Members were involved in the following consultancy research projects in the last few years.

1. How to Approach Banks for Short Term Credit

2. Bank Survey on SMEs in Bangladesh

3. Domestic Factoring in Bangladesh

Research

Research is one of the important wings of BIBM. In response to new challenges in banking and finance, the institute undertakes a number of research projects in the selected areas in order to develop a body of banking knowledge, aid banking policy formulation and improve the overall effectiveness of banking activities. Research projects undertaken in 2005 and 2006 are listed below:

Year-2005

Research Project No. 01

Title: An Evaluation of the Operations of International Trade Payment Methods in Bangladesh

Research Team: Dr. Toufic Ahmad Choudhury



Title: Debt Market in Bangladesh(Completed)

Research Team: Dr. Prashanta Kumar Banerjee

Md. Saidur Rahman

Sharmin Morium

Year-2006

Research Project No. 01Title: A Study on the Determinants of Bank Deposit in Bangladesh

Research Team:Dr. Bandana Saha

Syed Ahmed Khan



Tanweer Mehdee

Research Project No. 02 Title: Information Technology and International Banking: Bangladesh Perspective

Research Team: Dr. Shah Md. Ahsan Habib

Md. Shihab Uddin Khan

Md. Mahbubur Rahman Alam

Kaniz Rabbi

Tariqul Islam


Title: Developments and Prospects of Foreign Exchange Market in Bangladesh

Research Team: Dr. Toufic Ahmad Choudhury


Md. Nehal Ahmed

Md. Abdullah Al Mamun

Suriya Rahman

Research Project No. 04 Title: Institutional Financing for Small and Medium Enterprises in Bangladesh

Research Team:Dr. Sujit R. Saha

Md. Saidur Rahman

Ashraf Al Mamun

Md. Alamgir


Title: Status of Commercial Banks in regard to using Foreign Exchange Derivatives Products in Bangladesh

Research Team:Sk. Harun-ar-Rashid

Abdul Jail Chaudhury

Jahangir Alam


Title: Handling Grievances of Human Resources in Banks

Research Team:A.T.M. Abdus Shahid

Fahmida Chowdhury

Muhammad Tazul Islam

Md. Masudul Haque

Research Project No. 07Title: Deposit Behavior in Banks of Bangladesh

Research Team:Dr. Bandana Saha

Syed Ahmed Khan



Publications

The institute publishes a quarterly journal named Bank Parikrama. The main objective of the journal is to publish articles, notes, comments, etc. in the fields of banking, finance, economics and allied subjects. Submitted articles and notes are published based on the review report given by the experts of the relevant field. The journal has been progressively getting popularity over the years. The journal is available with Tk. 50.00 for the inland readers and with US$2.00 for foreign readers.

NOTE FOR CONTRIBUTORS AND GENERAL READERS

1. Bank Parikrama, a Journal of Banking & Finance, is a quarterly journal of the Bangladesh Institute of Bank Management (BIBM) published in March, June, September and December each year.

2. The main objective of the journal is to publish articles, notes, comments, etc. on relevant topics in the fields of banking, finance, economics and allied subjects which may contribute to the development of academic, professional and administrative expertise in the banking sector.

3. Articles must be original and in consonance with the objectives of the journal. Each article should have an "Abstract" within 150 words.

4. Article to be submitted should be organized generally into the following sections

(a) Introduction : Stating the background and problem

(b) Objectives and hypotheses

(c) Methodological issues involved

(d) Findings and analysis

(e) Policy implications

(f) Limitations, if any, and

(g) Conclusion (s).

5. Manuscript should be typed in double space on one side of each page and submitted two copies of the manuscript (preferable with soft copy) to the Executive Editor.

6. The first page of the manuscript should contain the title of the paper, the name(s) of author(s) and footnote giving the current affiliations of the author(s) and acknowledgments, if any. The subject matter should commence from the second page onwards for anonymity.

7. If the article is accepted for publication elsewhere, it must be communicated immediately. Otherwise, the onus will lie on the author(s).

8. The title of the article should be short. Brief subheadings may be used at suitable points throughout the text. The Editorial Board reserves the right to alter the title of the article.

9. Tables, graphs and maps may be used in the article. Title, source(s) of such tables, etc. should be mentioned.

10. If the Editorial Board is of the opinion that article provisionally accepted for publication needs to be shortened or particular expressions deleted or rephrased, such proposed changes will be sent to the author(s) of the article for clearance prior to its publication. The author(s) may be requested to recast any article in response to the review thereof by any reviewer.

11. The numbering of notes should be consecutive and placed at the end of the article.

12. Reference in the text should be cited as follows:

Authors last name and year of publication, without comma, in parentheses, e.g.(Rahman 1980); with two authors e.g. (Hye and Rahman 1994); with more than two authors e.g. (Hye et al. 1995); with more than one source cited together e.g. (Siddique 1982; Hye 1990; Choudhury 2001); with two or more works by one author e.g. (Smith 1982, 1990). When the list of reference contains more than one work of an author in the same year use suffix a, b, c, etc., e.g. (Hye 1980a) or (Haque 1975a; Hye 1985b). If an authors name is mentioned in the text for quotation write, Anthony (1980 ) says that no rules and regulations can substitute ........ of the financial system.

13. In preparing the list of reference, the following rules should be adopted.

(a) Articles

Anderson, R.N. (1975), "Financial Reporting Practices: Disclosures and Comprehensiveness in an International Setting", Journal of Accounting Research, 14 (Spring), pp. 450-600.

Benjamin, Y.K. and C.L. Marston (1974), "Financial Disclosure in Relation to the Capital Market", Journal of Business, Finance and Accounting, Vol. 20, No. 4, June, pp. 113 - 150.

(b) Books/Monographs

Hye, Hasanat Abdul (1995), Integrated Approach to Rural Development, 2nd Edition, Dhaka: University Press Limited, pp. 5-12.

Iqbal, Z. and A. Mirakhor (1987), "Financial Intermediaries and the Savings- Investment Process", IMF Working Paper, No. 12, Washington, DC: International Monetary Fund.

(c) Edited Work

Sherman, Anther W. and Herbert Y. C.(1984), "Personal Training Hand Book of Organizational Psychology", in Edward I. Altman and R.N. Hicks (eds.), Human Resource Management and Development, London: St. James Press (Pvt.) Limited, pp. 20-45.

14. The Institute shall not be responsible for the views expressed in the article, notes, etc. The responsibility of statements, whether of fact or opinion, shall be entirely with the author(s). The author(s) shall also be fully responsible for the accuracy of the data used in his / her manuscript.

15. A token honorarium is paid to the author for each published article

16. Articles, notes, comments, etc. not accepted for publication are not returned to the author(s).

______________________________________________________________

All communications should be addressed to:

Executive Editor

Bank Parikrama

Bangladesh Institute of Bank Management (BIBM)

Mirpur- 2, Dhaka- 1216

Bangladesh.

PABX : 9003031-5; 9003051-2

Fax : (880-2) 9006756

E-mail : [email protected]

Website: www.bibm-bd.org

Bank Parikrama (Last two Issues)

Volume XXVIII and XXIX June 2003- December 2004

1. The Impact of Monetary Policy on the Bank Portfolio in Bangladesh

- Sayera Younus, Deputy Director, Research Department, Bangladesh Bank.

Abstract

The objective of this study is to examine empirically the channels through which monetary policy transmits to the economy in Bangladesh. To do that, the paper examines the impact of monetary policy on the bank deposits and credit. Using the quarterly data from 1975 to 2000, an Impulse Response Functions (IRFs) and Variance Decompositions (VCDs) derived from a structural (Bernanke, 1986) VAR and a VAR with Cholesky decompositions are used to examine the monetary policy transmission in Bangladesh. The results indicate that the monetary policy measured by the monetary base does not have a significant impact on deposits and credit which implies the non-existence of' 'money channel' or 'credit channel' in Bangladesh. This result is plausible as commercial banks have large amount of excess reserves of Tk. 4,501.6 crores which is 57.37% of total reserves as of June 2004 (Economic Trends, Bangladesh Bank). The less dependence of the commercial banks on the central bank may contribute to the ineffectiveness of monetary policy in altering bank portfolios in Bangladesh. The paper also looks at the impact of bank assets and liabilities on the price level and economic activity.

2.Financial Sector Crisis in Japan: Impact of Non-performing Loan on Bank Loan Supply

- Md. Mohiuddin Siddique, Lecturer, BIBM, Dhaka.

Abstract

The central point of the recent financial crisis in Japan is the weakening balance sheet of the banks mainly because of long lasting high percentage of Non-performing Loan (NPL). After playing a pioneering role in the post-war high growth period the banking sector in Japan fell into a deep problem at the beginning of the 1990s after the burst of the bubble. The present study tries to analyze the causes and impact of NPL on the banking behavior with a special emphasis given to bank credit. After some preliminary assessment (qualitative and quantitative) between the NPL and some other major banking indicators such as bank credit, profitability, and capital position, the author embarked on an empirical model to estimate the impact of NPL on bank credit. For that, a bank loan supply function was estimated. A panel data of 112 regional banks covering the period from the FY 1999 to FY 2003 was used to estimate the equation. The results support the presence of credit crunch in the Japanese economy due to NPL problem. The study has some far-reaching implications for the developing countries, which follow the bank-based developing model.

3. Central Bank Autonomy - An Analysis in the Context of Bangladesh

- Syed Ahmed Khan, Faculty Member, BIBM.

Abstract

Central bank autonomy has been a topic of discussion throughout the world. The main argument in favour of central bank autonomy is that independent central banks are better able to make credible commitments to a low-inflation policy. The question of central bank autonomy did not emerge so far because money and capital markets were not broad and matured enough in Bangladesh. With the implementation of Financial Sector Reform Programs in Bangladesh, the supervisory role of Bangladesh Bank over the financial institutions has increased significantly. In addition, the entry of large number of banks and financial institutions in the financial sector, huge amount of regular borrowings of the government from the banking sector, the formation of Co-ordination Council for the formulation and implementation of monetary and fiscal policy, the present trend of appointment of Governor and Board of Directors of Bangladesh Bank and the issue of transparency and accountability of Bangladesh Bank suggest analysis on this issue. This paper makes an endeavor in this respect in the context of Bangladesh.

4. High Lending Rates in Bangladesh: An Analytical Review

- Md. Ezazul Islam, Joint Director and Deputy Director, Research Department, Bangladesh Bank.

- Mst. Nurnaher Begum, Joint Director and Deputy Director, Research Department, Bangladesh Bank.

Abstract

This paper investigates the causes of high lending rates in Bangladesh. The paper explores that high interest rate spread prevails due to financial system of Bangladesh being less competitive, distorted, fragmented and oligopolistic structure under deregulated interest rate regime. The other factors which affect interest spread are high non-performing loan, high expenditure-income ratio, lack of operational efficiency of Nationalised Commercial Banks (NCBs), uneven competition among the banks and high interest spread of Private Commercial Banks (PCBs) and Foreign Commercial Banks (FCBs). For reducing lending rates at desirable level, Bangladesh Bank has gradually reduced bank rate to 5 per cent in November, 2003 from 8 per cent in 1997 and re-fixed Statutory Liquidity Ratio (SLR) to 16 per cent from 20 per cent in November, 2003 with 4 per cent Cash Reserve Requirement (CRR). Following these policy measures, commercial banks did not respond quickly although these measures had a little impact on deposits and lending rates of the commercial banks. Still the banks' lending rate is high in Bangladesh as compared to some of the Asian countries. The paper concludes that the banks may reduce lending rate at a single digit level ( i.e. below 10 per cent ) and it suggests that financial sector reforms must be strengthened in order to reduce the cost of financial intermediation and to reduce wastage of resource through lowering the amount of bad loan.

5.Practices of Agricultural Financing in Bangladesh: A Study of Selected Branches of Rajshahi Krishi Unnayan Bank in Nilphamari District

-Rustom Ali Ahmed, Assistant Professor, Department of Finance and Banking, Rajshahi University

Abstract

Agriculture sector is the single largest contributor to the GDP of Bangladesh. But the agricultural credit delivery process of the country faces many problems. In the present study, an opinion survey has been done on the sample borrowers and bankers regarding the process and problems of agricultural financing of Rajshahi Krishi Unnayan Bank (RAKUB). The study finds that credit delivery procedures and services of the bank do not satisfy the expectations of the borrowers and it also recommends a number of measures relating to credit delivery, supervision and recovery and implementation of some policies by the Government relating to legal and administrative reforms.

6. Is Financial Liberalization a Vehicle for Economic Sector Efficiency of Bangladesh?

- Sarkar Humayun Kabir, Lecturer, BIBM.

Abstract

Financial sector reform programs in Bangladesh started in the late 1980s. Bangladesh, like other developing countries got dubious results from the liberalization process. This study covers the impact of financial liberalization on the efficiency of financial sector. Here financial development has been measured by real interest rate, volume of intermediation, and efficiency of intermediation. The paper utilizes an econometric model to assess the impact of financial sector reform program on economic sector efficiency. Econometric analysis shows that despite financial development in reform period, financial and monetary instruments are not contributing fully to efficiency due to lack of proper structural and legal support and policy enforcement.

7.Innovation in Banking Products in Bangladesh

- A.T. M. Abdus Shahid, Professor, BIBM.

- Prashanta K. Banerjee, Associate Professor, BIBM.

- Ashraf Al Mamun, Assistant Professor, BIBM.

Abstract

Innovation in the banking products has been observed in the western countries over the last four decades as well as in other developing countries in recent years. However, the extent of innovation in banking products in Bangladesh is not encouraging. In the process of development of Bangladesh, banks will have to shoulder more responsibilities than before for meeting the financial needs of different sectors of the economy. For this, banks must develop new products to serve their clients. In this perspective, an attempt has been taken to examine the major innovations in banking products which have taken place, and which are yet to make entry in the banking sector of Bangladesh. In this process besides traditional banking products, banks have recently introduced several products such as consumer product, credit card, debit card, merchant banking, leasing, loan syndication, etc. in terms of asset product base; preferential and installment saving deposits scheme, insurance linked deposit schemes, etc. in terms of liability product base. The paper also addresses the underlying factors that have caused introduction of new banking products in Bangladesh. Of course, banks brought required upgradation in adopting these new products in Bangladesh. It is also observed that some products like factoring, financial derivatives, etc. being used in other countries are yet to be introduced in the banking system of Bangladesh.

8. Rapporteurs' Report of the Seminar on Innovation in Banking Products in Bangladesh

Volume XXX March 2005

1. Ethics in Banking

- Wahiduddin Mahmud, Professor, Department of Economics, Dhaka University.

2. Effects of Managerial Leadership Power Bases on Employees' Job Commitment in the Nationalised Commercial Banks of Bangladesh

- Nadim Jahangir, Associate Professor, School of Business, Independent University, Bangladesh

- Mahmudul Haq, Senior Lecturer, Department of Management and Business,

BRAC University.

Abstract

Lack of efficiency in the Nationalised Commercial Banks (NCBs) of Bangladesh can be attributed to a multitude of sources. Absence of adequate infrastructure facilities, lack of modern technology and the use of conventional managerial approaches have all contributed to the dismal performance of the NCBs. In a poor country like Bangladesh, where financial resources are scarce, an abrupt improvement in the infrastructure and technological facilities cannot be expected in government-owned banks. Immediate improvement in the NCBs can be brought about by improving the employees' job performance by motivating and developing their commitment to the organisation. The role of the managers as leaders of the employees is vital along this direction. Among the various aspects of leadership the use of power bases has gained significant popularity in the literature of management. The effective use of different bases of social power by the managers can contribute significantly in accomplishing higher employee commitment, greater job performance, and higher job satisfaction, all of which result in improved organisational performance. This paper examines the relationship between managers' use of social power and employees' organisational commitment level in context of NCBs of Bangladesh. The five bases of social power, as developed by French and Raven (1959), were utilised to investigate the relationship. Bivariate correlation, factor analysis and hierarchical multiple regression analyses were performed on data obtained from NCBs employees. The results indicate significant relationship between organisational commitment and two bases of social power. Implications for practicing managers and for future research are also discussed1.

3. Recent Fluctuations in Call Money Rate : Causes and its Impact

- Md. Akhtaruzzaman, Deputy General Manager, Research Department, Bangladesh Bank.

- Mahfuza Akther, Joint Director, Research Department, Bangladesh Bank.

- Mohammad Masuduzzaman, Assistant Director, Research Department, Bangladesh Bank.

Abstract

Call money market in Bangladesh was basically developed under competitive environment of the financial market. However, the market could not develop as expected, rather it showed a wide range of seasonal fluctuations. The study reveals that in most cases, whenever excess reserve falls, the rate of interest in call money market rises and vice versa. It also shows that Non-bank Financial Institutions (NBFIs) have played a major role in the recent fluctuations. Some Private Commercial Banks (PCBs) have taken the opportunity of borrowing money at low rates on the same day, thereby making the market volatile. Other reasons for the recent fluctuations are the expansion of credit and withdrawal of deposit by the public during Eid festival. Demand for cash by banks and financial institutions hit the inter-bank repo market. Besides, some banks' borrowing of foreign currency from inter-bank money market contributed to the increase in both exchange and call money rates.

4. Is Investment Demand Sensitive to Interest Rate in Bangladesh? - An Empirical Analysis

- Md. Ezazul Islam, Joint Director, Research Department, Bangladesh Bank.

- Mst. Nurnaher Begum, Deputy Director, Research Department, Bangladesh Bank.

Abstract

The main objective of the paper is to estimate investment demand function and to see the policy implications of monetary policy. By using OLS method, an investment demand function has been estimated for the sample period of 1973-2004. From the estimated investment demand, it is found that investment is more sensitive with GDP by 1.61 per cent and less sensitive with interest rate (real lending rate) by 0.36 per cent. With narrow based capital market, financial sector specially banking system is the major source of investment financing. Despite lower sensitivity of investment with respect to interest rate, there are some implications for persuing expansionary monetary policy to induce firms to desire more capital with lower cost. The trend of financial deepening and the ratio of private sector credit to GDP indicates a close link between financial development and economic growth in Bangladesh. For achieving higher growth say 8-9 per cent yearly, expansionary monetary policy is effective with prudent fiscal policy.

5. Cost of Rural Credit Delivered by Formal Sector Banks: A Study of Chittagong Area

- Md. Salim Uddin, Associate Professor, Department of Accounting, Chittagong University.

Abstract

Bangladesh economy to a great extent depends on the development of agriculture and rural sectors. Government of Bangladesh tries to support rural financial institutions to ensure sufficient flow of funds to these sectors. In this regard, loans are given at concessional rates in the rural priority sectors. However, the crux of the problem is that the real cost of loan is much higher than the official rate. The incidental cost of getting and repaying loan comprises expenditure relevant to compiling formalities, days lost in getting and repaying loans, pleasing officials and the like. The incidental cost of getting loan varies from 19.2 per cent for small size loan to 8.18 per cent for large loan. In a similar way the incidental costs of repaying loan vary from 5.35 per cent for small loan to 2.02 per cent for large size loan. Thus on the average total real cost increases significantly over the official rate of interest. This cost varies from 30.23 per cent to 21.20 per cent depending on the size of loan against 11 per cent official rate of interest. This situation needs to be addressed so that real cost comes down which would help the desired target group. To this end, time limit for sanctioning and disbursement of loan needs to be fixed, formalities need to be simplified, service oriented motto needs to be developed along with other measures which may reduce real cost to a significant extent.

6. Currency Devaluation as a Strategy for Export Promotion and Resource Reallocation towards the Tradable Goods Sector

- Farida Parveen, Deputy Director, Research Department, Bangladesh Bank.

Abstract

Devaluing the currency is an important and debatable issue in developing countries like Bangladesh. Justification for an undervalued currency needs to be considered in terms of improvement of the current account balance of the country. Due to overvalued currency and inflexible production and employment structure of tradable goods sector, productive resources were stuck in the non-tradable goods sector and the country is losing its competitiveness of tradable goods sector despite some improvements in exports. In this paper an attempt has been made to examine whether undervalued currency has a significant role in improving trade balance in Bangladesh and to shift the productive resources from non-tradable to tradable goods sector. It has been found that the structure of Bangladesh export sector has changed in favour of non-traditional export items, which have high income and price elasticities. As the real exchange rate is defined by the relative price of tradable and non-tradable goods, undervalued currency might have a positive impact on trade balance. It also can shift the resources towards tradable goods sector.

7. Note

The Role of Palli Karma-Sahayak Foundation (PKSF) in Microcredit Delivery

- Md. Hasan Khaled, Assistant General Manager, Palli Karma-Sahayak Foundation (PKSF), Dhaka.

Center for Post Graduate Studies (CPGS)

The Center for Post Graduate Studies (CPGS) has been established in 1996 as an integral organ of BIBM with a view to conferring post-graduate degrees such as Masters in Bank Management (MBM). The MBM Program has been introduced in 1997 with affiliation of the National University. The Evening MBM (EMBM) Program, mainly for the professional bankers, has been started from July, 2006.

Masters in Bank Management (MBM) Program

The MBM Program is a professional post-graduate program for bank officers and others who plan career in banking and allied fields. The primary emphasis of the program is to develop skills for management of banks and financial institutions. The MBM program is covered in two years broken down into six terms. Each term is of four months duration. The program constitutes course work for 72 credit hours i.e. a student shall have to complete a total of 24 courses (4 courses in each term). In addition, a project paper (3 credit hours) in term VI, and 4 viva-voce at the end of terms I, II, IV and V (weighing 3 credit hours in total) are required.

The MBM program has a number of fundamental/core courses like Microeconomics, Business Communication and Report Writing, Marketing Management, Business Mathematics, Principles of Accounting, Principles and Practices of Banking, Principles of Management, Business Statistics, Management of Financial Institutions, International Trade Payment and Finance, Credit Management in Banks etc. Besides the core courses, students have to choose two courses among a range of ten elective courses in the last term.

Evening MBM (EMBM) Program

The Evening MBM degree is a two year eight months program consisting of eight terms, each term being of four months duration. The program constitutes course work of 72 credit hours, that is, a student shall have to complete 24 courses (3 credit hours for each course). In each term, a student is required to take three courses as prescribed by the National University. In addition, every student must write a project paper (in the last term) weighing 3 credit hours and appear for a viva-voce at the end of II, IV, VI and VII terms, weighing in total 3 credit hours. Marks obtained in the project paper and term-end viva-voce will be graded as per EMBM grading system. The class size consists of 50 students selected on a competitive basis.

Besides the core courses, the students have to choose two courses among a range of eight elective courses in the eighth term.

Facilities/Support Service

Medical Service:

For emergency and routine health consultation, the service of a part-time doctor is available to trainee, students and employees.

Recreation:

Modest indoor and outdoor recreation facilities for the students and trainees are available. It has an indoor games room and an outdoor ground for playing table tennis, carom, volleyball, badminton etc.

Residential facilities:

A furnished six-storied hostel building having single and two-seated rooms which can accommodate 150 students / trainees at a time is available. A special wing has been earmarked for female students/trainees which is serviced by female attendant. There is also a cafeteria for students and trainees.

Electronic/Computer based services:

Computer lab:

BIBM has two computer labs with 40 high-speed computers. They are inter-connected in a LAN under Windows 2000 operating system. These are equipped with latest application packages, programming & database languages.

Internet and E-mail services:

Local Area Network (LAN) has been setup in BIBM Faculty building. Broadband Internet and e-mail facility has also been established in the whole building.

Electronic tools in classroom:

Each classroom of BIBM is equipped with modern electronic tools such as overhead projector, multimedia projector, high-speed computer system with UPS and sound system.

Library Information

A highly professional library has been built-up specially to cater to the need of the banking and financial sector. There are about 23,000 books in the library and the institute subscribes to about 200 domestic and foreign journals and magazines other periodicals. Beside this the library receives different types of financial and economic literature, statistic bulletin published by Bangladesh and Development Financial Institutes and newsletters published by academic, research and training institute in Bangladesh and abroad. BIBM library collects special types of documents of Committee, task force and institution. Apart from these the library has collection of videocassette, audiocassette and CDs on different discipline including development and banking sector. The library is available for use by the faculty members and other employees of BIBM, the trainees and students enrolled in any program of BIBM. It is also available for use by the Associate Members (open to member and bank employees only). The Associate Members however, cannot borrow any book. For becoming Associate Member of the library the Deputy Librarian may be contacted in person or over telephone.

BIBM Library has exchange program with some libraries under which it can bring different books as per demand of the reader.

The Library timing is 8 a.m. to 8 p.m. on all working days. The library remains closed on all public holidays including Friday and Saturday.

Books:

Economics, Finance, Banking, Accounting, Business, Management, Marketing, Law, Computer Science, Agriculture, Research, Education, Psychology, Statistics, History, Geography, English and Bengali Fiction, etc. and Dictionaries on various disciplines.

Encyclopedia:

Encyclopedia of Britannica, Encyclopedia of Americana, Encyclopedia of Social Sciences, Encyclopedia of Management, Encyclopedia of Banking and Finance, Encyclopedia of Islam, etc.

Journals (Foreign and Local):

Journal on Economics, Banking, Accounting, Management Training, NGOs, Computer Science, etc.

Other Publications:

Annual Reports of various Banks and Financial Institutions, ADB, IMF & World Bank Reports, Govt. Publications viz. The publications mostly related to financial sector. BIBM course materials, seminar papers and background materials of workshops are preserved in the library.

Contact Information:

Physical address:Plot no.4, Main road 1 (South), Section 1, Mirpur, Dhaka.

Pabx Number:9003031 5, 9003051 2

Fax Number:88-02-9006756

E-mail:[email protected]

Director General

Phone: 8013208 (Direct), 9003031-35 (Ext-101),8014394 (PS to DG)


Director

(Administration and Accounts)

Phone: 9002368 (Direct), 9003031-5 (Ext-112)


Director

(Training)

Phone: 9007768 (Direct), 9003031-5 (Ext-114)


Director

(Research, Development & Consultancy)

Phone: 9003844 (Direct), 9003031-5 (Ext-102)


Director

Center for Post Graduate Studies (CPGS)

Phone: 9002744 (Direct), 9003031-5 (Ext-104)


Senior Accounts Officer

Phone: 9003031-5 (Ext-121)


Senior Administrative Officer

Phone: 9002370 (Direct), 9003031-5 (Ext-117)


Publications and Public Relations Officer

Phone: 9004981 (Direct), 9003031-5 (Ext-120)


Library

(Deputy Librarian)

Phone: 9003031-5 (Ext-226)


Hostel

Phone: 9001600, 9003031-5 (Ext- 125,126)


Computer Lab

Phone: 9003031-5 (Ext-211)


BIBM (Bangladesh Institute of Bank Management)

Documents

standard bank

national bank

premier bank

southeast bank

bank asia

eastern bank

trust bank

jamuna bank