Implementation of Basel in Bank Risk Management
Letter of Transmittal
May 30, 2013
Md. Zaiul Hoque Zia
Lecturer
Finance
BGC Trust University Chittagong, Bangladesh.
Subject: Submission of assignment
Dear Sir,
It is a great pleasure for me to submit the assignment on ―’Implementation of BASEL of bank risk management Following the Statutory Requirement. I am submitting this assignment. As my faculty supervisor, I have tried to prepare the report following your instructions. The purpose of the report is based on my working experience and how the bank has implemented of BASEL of bank risk management. I will be glad if you kindly accept this assignment.
Thanking you.
Sincerely,
___________________
Md. Rashidul Islam Khan
ID: 110302139
Preface
This paper addresses an important contemporary issue; namely the implementation of the
Basel Accord worldwide. The Basel Accord provides a series of measures to improve the stability of the world’s financial system but its implementation poses a number of challenges for both developing and emerging economies. Bangladesh faces a number of unique challenges in this regard due to its recent economic expansion and the fact that the rate at which the Basel Accord is being adopted lags behind that of other countries. This paper throws light on this and a number of related issues due to a combination of the novelty of the survey data from risk managers coupled with a rigorous statistical analysis. Results reflect that the Basel Accord is generally well regarded due to its underlying aims of improved capital standards and a scientific treatment of risk. However, operational risk emerges as a key barrier to implementation in Bangladesh. A number of further obstacles are highlighted, which, do seem to have been addressed although only with a partial degree of success. Privately owned banks appear to be more technically competent and more favorably disposed towards implementation than publicly owned banks.
ACKNOWLEDGEMENT
First of all I would like to my
May 30, 2013
Md. Zaiul Hoque Zia
Lecturer
Finance
BGC Trust University Chittagong, Bangladesh.
Subject: Submission of assignment
Dear Sir,
It is a great pleasure for me to submit the assignment on ―’Implementation of BASEL of bank risk management Following the Statutory Requirement. I am submitting this assignment. As my faculty supervisor, I have tried to prepare the report following your instructions. The purpose of the report is based on my working experience and how the bank has implemented of BASEL of bank risk management. I will be glad if you kindly accept this assignment.
Thanking you.
Sincerely,
___________________
Md. Rashidul Islam Khan
ID: 110302139
Preface
This paper addresses an important contemporary issue; namely the implementation of the
Basel Accord worldwide. The Basel Accord provides a series of measures to improve the stability of the world’s financial system but its implementation poses a number of challenges for both developing and emerging economies. Bangladesh faces a number of unique challenges in this regard due to its recent economic expansion and the fact that the rate at which the Basel Accord is being adopted lags behind that of other countries. This paper throws light on this and a number of related issues due to a combination of the novelty of the survey data from risk managers coupled with a rigorous statistical analysis. Results reflect that the Basel Accord is generally well regarded due to its underlying aims of improved capital standards and a scientific treatment of risk. However, operational risk emerges as a key barrier to implementation in Bangladesh. A number of further obstacles are highlighted, which, do seem to have been addressed although only with a partial degree of success. Privately owned banks appear to be more technically competent and more favorably disposed towards implementation than publicly owned banks.
ACKNOWLEDGEMENT
First of all I would like to my
References: Bangladesh Bank, (2010). Guidelines on Risk Based Capital Adequacy: Revised Regulatory Capital Balin, Bryan J PhD diss., The John Hopkins University School of Advanced International Studies, 2008. Banco Cental de la República Argentina. 2007. Road Map for the Implementation of Basel II (BIS 1) Bank for International Settlements. 2006. Brazil: Taming Inflation Expectations No 35 by Afonso Bevilaqua, Mario Mesquita and Andre Minella. Framework for Banks in line with Basel II. Retrieved November 9, 2012 Website: http://www.bangladesh-bank.org Wikipedia, (2012).Basel Accords. Retrieved November 9, 2012 Website:http://en.wikipedia.org/wiki/Basel Accords