Corporate Governance

In current time banking sector financial crisis is common issues around the world. One of the
major reasons behind this problem is an inadequate practice of corporate Governance.
Corporate Governance is the technical process and relations by which organizations are
regulated and directed towards the wealth maximization of shareholders.
Corporate Governance plays an important role in economic growth and development. The
governance of bank is of particular importance given their critical role in the financial
system. Bank management has the responsibility to safeguard depositor’s money as well as to
maximize shareholders interest
Corporate Governance also enhances the long term shareholder value by the process of
accountability of managers and by enhances the firm’s performance.
Major three pillars of Corporate Governance are transparency. Accountability and security.
All three are critically successfully running a company and forming solid professional
relationships among its stakeholders which include board directors, managers, employees and
most importantly shareholders.
The state and nature of corporate governance in Bangladesh are guided by several factors:
# company law
# government regulations
# SEC requirements and
#. pressure from buyers or peer pressure. The cumulative impact of these factors results in a
corporate behaviour which is followed in Bangladesh.
Impact: Some impacts are
a. Ensure that the management of a company considers the best interests of everyone.
b. Help companies deliver long-term corporate success and economic growth
c. Maintainers the confidence of investors and as consequence companies raise capital
efficiently and effectively
d. Improves control over management and information system (such as security or risk
management)
e. Minimizes wastage ,corruption, risks and mismanagement
f. Helps to create a strong brand reputation.
 Monetary policy: Bangladesh experience Exam
2018
The mainstream monetary policy approaches of developed economies seek to impact real sector
economic activities primarily by influencing financing costs and occasionally also by influencing
liquidity volumes. It leaves sectoral flows of financing to be decided by markets according to
prevailing risk-return trade-off preferences.
Recurring cycles of financial instability and attendant spells of financial exclusion show this
mainstream monetary policy approach to be sub-optimal for both growth sustainability and stability.
The Bangladesh Bank (BB), the central bank of a low income developing economy, has opted to
deviate from the mainstream monetary policy approach of developed economies.

BB's charter lends legitimacy to this approach, backed by the government's inclusive and sustainable
growth strategy, underpinned further by a broad social consensus for equitable, sustainable
development.

supportive monetary policy approach is serving the Bangladesh economy well in upholding growth and
stability. This was evidenced in decades of steady growth performance and macro financial stability amid
domestic shocks.
Six-plus per cent real annual GDP (gross domestic product) growth trend is continuing for well over a
decade and fiscal deficit remaining under four per cent of GDP
Double-digit export growth and workers' remittance inflows

growth performance and macro financial stability amid domestic shocks.

Six-plus per cent real annual GDP (gross domestic product) growth trend is continuing for well over a
decade and fiscal deficit remaining under four per cent of GDP
Double-digit export growth and workers' remittance inflows
have kept balance of payment current account in healthy surplus with rising foreign exchange
reserves . poverty reduction have been attained well ahead of timeline.
Mandatory environmental risk assessment routines in loan appraisal processes take account of
sustainability concerns. Promotion of SME and green financing is supported by low cost refinance
lines within monetary and credit growth envelops of price and macroeconomic stability focused
annual monetary programmes.

Green financing promotion efforts have already yielded substantial progress in solar and bio-mass
based renewable energy generation, installation of industrial effluent treatment plants, replacement
of traditional polluting brick baking kilns with energy efficient modern ones, and so forth.
Inclusive financing is bolstering financial stability by widening and diversifying the asset and deposit
bases of lending institutions, reducing their credit and liquidity risk exposures. Inclusive financing

shielded small farms and businesses in Bangladesh from any credit crunch in the last global financial
crisis. When needed, the financial sector in Bangladesh was able to help out export manufacturing
and other sectors affected by the global crisis. Domestic demand driven output activities remained
well supported by inclusive financing, compensating for growth sluggishness in exports.
Embedding of inclusive, sustainability supportive aspects in the BB's monetary policies and
programmes came about in a consistent package of steps. Starting with setting mind-sets and
motivations right by instilling in the financial sector the ethos of socially responsible financing
focused towards supporting environmentally sustainable output activities and away from financing
of speculative profit seeking or wasteful ostentation. This has successfully enthused banks and
financial institutions into spawning new initiatives of reaching out with financial services supporting
productive and green initiatives in underserved communities and sectors. They used cost-efficient
mobile phone/smart card and other off branch service delivery channels enabled by a BB-led
massive upgrading of the financial sector IT infrastructure.
Environmental risk assessment guidelines introduced by the BB promotes green financing by putting
lower risk weights on the green options than on their polluting alternatives. This is supplemented
further by modest macro-prudential policy tweaks favouring green financing, like mandatory high
margin requirement on financing of personal cars etc., leaving mass transit vehicles free of such
conditionality.
The BB is engaging intensively with relevant domestic authorities and external development partners
in devising feasible and appropriate support schemes for various inclusive and green financing
initiatives. Further, the BB is participating proactively in international forums advancing the causes
of inclusivity and environmental sustainability like the AFI (Alliance for Financial Inclusion), UN
Global Compact, UNEP (UN Environmental Programme) etc. for mutual learning and experience
sharing.
In fact, the BB's monetary policies and programmes explicitly include aspects supportive of inclusive
and green output initiatives. These are something the central bank sees as essential in managing
climate change related and environmental degradation related risks. Results thus far are positive
and encouraging with regard to upholding of price and macro financial stability. Monetary policy
approaches of central banks of many other developing economies have variants of similar
inclusiveness and sustainability supportive aspects. Mainstreaming of this approach in monetary
policies of developed economies as well may be warranted by the imperative and urgency of
environmental sustainability.
ROLE OF BACK TO BACK LC IN GARMENTS
INDUSTRIES Exam- 2019
Back to back LC’s is issued on behalf of a customer against the security of Export LC’S for
procurement of raw materials either locally or from abroad and makes timely shipments.
The customer is entitled to open BTB LC 75 % to 100 % of the FOB value of the Export LC.
The government of Bangladesh has advised a special procedure under which the export
oriented garment units are allowed to import their raw materials free of duty under the
bonded warehouse arrangement. Back to back letter of credit, in essence, is used to import
the inputs generally on credit terms up to 18 days on the strength of the foreign LC received
from the overseas buyers.
A back to back letter of credit is a new credit. It is different from the original credit based on
which the bank undertakers the risk under the back to back credit. In this case the banks
main security is the original credit. There are two types of Back to back LC. One is congruent
and another is incongruent
Details of Back to back LCs as follows:
Applicant
Beneficiary
Amount
Draft
Merchandise
Shipment
Documents required for Back to Back Lc:
1. commercial invoice in quadruplicate signed by beneficiary, certifying merchandise.
2. FULL SET OF CLEAN SHIPPED ON BOARD OCEAN BILLS OF LADING.
3. PACKING LISTB quadruplicate
4. Beneficiary certificate/certificate of Origin
5. Frats
6. Insurance cover note etc.
 USES OF LC IN GARMENTS SECTOR Exam 2019

A Letter of credit is a payment term generally used for international sales transactions. It is
basically a mechanism, which allows importers/buyers to offer secure terms of payment to
exporters/sellers in which a bank (or more than one bank) gets involved. THE TECHNICAL
TERM OF Letter of credit is Documentary credit. At the very outset one must understand is
that letter of credit deal in documents, not goods. The idea is an international trade
transaction is to shift the risk from the actual buyer to the bank. Thus a Lc is a payment
undertaking given by a bank to the seller and issued on behalf of the applicant i.e. the
buyer. The buyer is the applicant and the seller is the beneficiary. The bank that issue the LC
is referred to as the issuing bank which is generally in the country of the buyer.
Letter of credit is the familiar word in apparel industry.
THE DOCUMENTS SHOWN UNDER ARE KNOWN AS EXPORT DOCUMENTS FROM THE
IMPORTERS SIDES
These are:1 Bill of exchange
2.Bill of lading
3. Airway bill/ Railway receipt
4. Commercial Invoice
5. Insurance policy
6. Certificate of origin
7. Packing List
8.Bill of entry
 MANAGERIAL SKILLS Exam 2017

Simply, managerial skills are the knowledge and ability of the individuals in a managerial position to
fulfil some specific management activities or tasks.

This knowledge and ability can be learned and practiced. However, they also can be acquired
through practical implementation of required activities and tasks.
Managerial skills are necessary for a manager to perform their job successfully. ... Human skills
include the ability for managers to work with, motivate, encourage, empathize, and communicate
with their employees. These skills are important for all levels of management
The following are six essential management skills that any manager ought to possess for them to
perform their duties:
1. Planning. Planning is a vital aspect within an organization. ...
2. Communication. Possessing great communication skills is crucial for a manager. ...
3. Decision-making. ...
4. Delegation. ...
5. Problem-solving. ...
6.Motivating.
 Employee Grievance Exam-2018

Employee grievance refers to the dissatisfaction of employees with what they expect from the
company and its management and what they receive. A company or employer is expected to provide
an employee with a safe working environment, realistic job preview, adequate compensation,
respect etc. However, employee grievance is caused when there is a gap between what the
employee expects and what he receives from the employer.

Importance of Employee Grievance:

Employee grievances may or may not be justified. However, they need to be tackled adequately by
the leadership team because they not only lower the motivation and performance of the employee
but also affects the work environment. If left unchecked, it can lead to large disputes within the
company. It can also drop the motivation levels of other employees. Any company must have a
proper channel for employee grievance redressed.

Steps in Employee Grievance Handling

1. Employee grievance should be submitted in a proper channel.

2. The supervisor of the employee should be informed and spoken to.

3. A review committee should examine the grievance for its validity and against the company's
policy.

4. Resolution should be provided if the grievance is valid.

5. If the employee grievance is not resolved there should be a further body where it can be appealed

In an organization a grievance may arise due to several factors such as :

1.Vialation of managements responsibility such as poor working conditions

2. violations of companies rules and regulations

3. violations of Labour laws

4. violations of natural rules of justice such as unfair treatment in promotion etc

 Employee Job Satisfaction Exam-2017

Job satisfaction or employee satisfaction is a measure of workers' contentedness with their job,
whether they like the job or individual aspects or facets of jobs, such as nature of work or
supervision. ... Others have defined it as simply how content an individual is with his or her job;
whether he or she likes the job.

The five factors: engagement, respect (praise and appreciation), fair compensation, motivation, and
life satisfaction all help lead to job satisfaction in the workplace. While extrinsic factors like
compensation are important, intrinsic factors generally contribute more to job satisfaction.
Factors of Workplace Satisfaction
Keeping employees engaged and satisfied takes more than just good pay and benefits. The following
list reveals some of the key job satisfaction aspects cited by employees:

Respect – According to the SHRM report, employees rate respectful treatment of all employees as
the most important factor in job satisfaction.
Trust – Perhaps because of workplace uncertainty in the years following the Great Recession,
employees indicated that trust between themselves and senior management was another highly
important satisfaction factor.
Security – If you’ve ever had to go to work each day wondering whether your job is secure, you
know it can cause a great deal of anxiety. Organizations can provide a sense of security through
honest communication and transparency about the company’s health and long-term viability.

Healthy Environment – Workplaces that are free from stress, morale issues, harassment, and
discriminatory practices can create a positive and healthy environment for everyone.

Career Path – No one wants a dead-end job. Employees are more likely to excel when they can see
an established upward path, with the opportunity to earn a higher wage and take on greater
responsibilities.
Pay and Benefits – Good wages aren’t the only reason employees find satisfaction in their jobs, but
they typically rank high on the list. Competitive pay generally makes employees feel valued and gives
them less reason to look elsewhere for work.

It doesn’t take much extra effort to keep employees happy. They want to feel respect and trust,
while working in a safe environment, with good pay and opportunities to advance. When your
company develops ways to deliver on these important factors, it can satisfy employees – and help
build a stronger, more stable, and profitable future.
 Employee Job Satisfaction Exam-2017

Employee satisfaction is an essential aspect of any business or organization. Employee satisfaction

describes employee perception of whether their desires are being met in the work place. when
employees are happy and satisfied with the management and work culture, they put their best
efforts to make the company successful

Moreover, employee satisfaction is essential to ensure higher revenue for the organization

Furthermore, a satisfied employee is one who is positive in their approach. They are proactive,
productive and committed to contributing to the organization goals. There

are five components of employee satisfaction:

# Engagement

# Respect (praise and appreciation)

# Fair Compensation

# Motivation

# Life satisfaction

organization must be ensure of these practise to improve employees satisfaction and employees
engagement. satisfied employees would always put their best foot forwards and work towards the
bottom line
 Challenges of SME Exam 2018

Small and medium enterprises (SMEs) are the backbone of the Bangladesh economy: they make up
more than 90 percent of all businesses that provide two out of three private sector jobs in the
country.

So, it is very important to help the sector grow for the sake of the country’s economic success and
sustainability.
Yet, SMEs face various challenges from marketing of products to access to finance, lack of capital
and skilled manpower, poor training facility, undeveloped sales channels and low level of financial
inclusion, which, according to a quick survey conducted by The Daily Star, are some of the reasons
that hamper the growth of SMEs

Fifty SMEs, who took part in a fair in Dhaka recently, responded to the survey.

Most of the respondents urged for a common marketing platform for micro and SMEs along with
easy access to funds.

A sales centre system can be formed all over the country to display the products of SMEs to the
consumers, said Jahida Parvin, proprietors of Nakshi Hastashilpa (handicrafts).

Many clients want to buy their indigenous products round the year but they do not have any
showroom for displaying their products, said Rejaul Islam, another SME entrepreneur.
Lending to SMEs has increased to 19 percent of total loan portfolio in March this year from 15
percent a decade ago, but it is still inadequate, said Ahmed Rashid Joy, general manager and head of
SME at IDLC Finance.

“We have to take the SME loan portfolio to 40 percent if we want to become a developed nation.”
 Internal Control & Compliance Division (ICCD) Exam-2016&2020

Internal controls are processes designed to help safeguard an organization and minimize risk to its
objectives. ... Control is the part of the process designed to accomplish a goal. Compliance is the
execution of the process that was designed. For example, we have the objective to protect the
information on our computers.

Internal control, as defined by accounting and auditing, is a process for assuring of an organization's
objectives in operational effectiveness and efficiency, reliable financial reporting, and compliance
with laws, regulations and policies. A broad concept, internal control involves everything that
controls risks to an organization.

There are two basic categories of internal controls – preventive and detective. An effective internal
control system will have both types, as each serves a different purpose.

control activities aim to deter errors or fraud from happening in the first place and include thorough
documentation and authorization practices. Detective controls are backup procedures that are
designed to catch items or events that have been missed by the first line of defense.

Some Preventive Internal Controls?

Separation of duties, a key part of the preventive internal control process, ensures that no single
individual is in a position to authorize, record, and be in the custody of a financial transaction and
the resulting asset. Authorization of invoices, verification of expenses, limiting physical access to
equipment, inventory, cash, and other assets are examples of preventative internal controls
GREEN BANKING Exam 2016,2021 (cash)

The central bank of Bangladesh has issued policy guidelines for green banking that aim to
prevent environmental degradation and ensure sustainable banking practices.
Green banking is different from traditional banking.as green banking focus on promoting
environmental friendly banking. Green banking is also known as ethical banking Ethical
banks have started with the aim of protecting the environment. Green banking like a normal
bank which considers all the social and environmental/ecological factors with an aim to
protect the environment and conserve natural resources.
Green banking is to make internal bank process, physical infrastructure and information
technology effective towards environment by reducing its negative impact on the
environment to the minimum level. Green banking is an umbrella term referring to practices
and guidelines that make bank sustainable in economic, environmental and social
dimension. It aims to make banking processes and the use of IT and physical infrastructure
as efficient and effective as possible, with zero or minimal impact on the environment.
Benefits
1.Basically green banking avoids as much paper work as possible and rely on online/
electronic transactions for processing.
2.Free electronic bill payment service
3.Online account opening form for opening green account
4. cash back will be credited to all new customers, opening green accounts
5. saving of paper
Readymade Garments Industries in Bangladesh
Industry is the means of gaining economic power of any country. Readymade garments industry of
Bangladesh has carved out a nice for itself. It has emerged as a profitable, quick yielding investment
sector and opened up a wide scope for entrepreneurship development in the garments sector as
well as in linkage industries and support services. So, garments industry in Bangladesh has
developed an educated, young hardworking entrepreneurial class which has absent in the country.
This sector has generated direct employment opportunities for 4.0 million workers of which 90% are
female workers. Besides, more than 0.8 million workers are engaged in accessory industries related
to the garment industries.
On the other hand 16 million people are indirectly depended on the RMG industries. It has emerged
as a hundred percent export oriented industry and dependent on the RMG industries. It has
emerged as a hundred percent export oriented industry and ever since the beginning in 1978-79; the
country earned foreign exchange from garments export at a very fast growing rate. In July, the first
month of the financial year 2013-2014 the export earnings totaled $3024.29 million, growing by an
impressive 24 percent compared with the same period last fiscal year. The export earnings figure of
July in financial year 2012-13 was $2.4 billion with 4.26 percent growth. Even after the tragic
incidents at Tazreen Fashions and Rana Plaza, the export earnings of July proved that Bangladesh has
not lost its competitiveness in the RMG sector.
Through garments industry of Bangladesh improving day by day, it suffers from a number of
drawbacks. One of the major problems faced by the apparel exporting firms in Bangladesh is their
great dependence on imports of fabrics and accessories from abroad. According to some estimates,
the domestic woven fabric meet only 10 to 15 percent of the demand for fabrics of the country’s
garments industry units. Our garments sector also lacks modern technology. It is mainly dependent
on manual labor. Our garments sector lacks skilled and technologically trained labor force. For
acquiring the competitive capacity in a free quota market and to accelerate the growth of our
garments sector we should overcome our drawbacks and maintain international standards of our
products. After all, the country has the opportunity to build up increased capabilities to adjust to the
changing industry conditions through market and product diversification as well as to develop the
local base through growth of the backward linkage industries. So, the need for the hour is to take
initiative in this direction by our government as well as our business community thereafter.
Financial inclusion Exam 2018

Financial inclusion is defined as the availability and equality of opportunities to access

financial services. These include banking, loan, equity, and insurance products.
Financial inclusion strengthens the availability of economic resources and builds the concept
of savings among the poor. Financial inclusion is a major step towards inclusive growth. It
helps in the overall economic development of the underprivileged population.
What is financial inclusion in banking terms?
Financial inclusion is a method of offering banking and financial services to individuals. It
aims to include everybody in society by giving them basic financial services regardless of
their income or savings. It focuses on providing financial solutions to the economically
underprivileged.
Bangladesh Bank and the government have been extensively trying to expand financial
services for disadvantaged groups for the past few years, but it has been challenging to
implement. This is due to low literacy amongst rural dwellers, large population and high-
interest rates.
Basic financial services such as deposit, credit etc. is considered as entitlement of all people
in a society, this is particularly true in developed countries. Inclusiveness of a greater
segment of people in financial system is pre requisite for economic development of a
country like Bangladesh to facilitate employment to ease credit facilities. Despite a large
number of bank branches and micro finance institutions in our country, a large segment of
our population particularly rural poor have scant access to banking services. Bangladesh
Bank has started to find a way out of this situation and services like deposit, small credit etc.
need to be made available to the common people for the sake of poverty reduction also.
Bangladesh Bank and the Government of Bangladesh (GOB) have adopted several remedial
measures to bridge these gaps in financial inclusion.
Objectives of financial inclusion
The objectives of financial inclusion are to provide the following:
A basic no-frills banking account for making and receiving payments
Saving products (including investment and pension)
Simple credit products and overdrafts linked with no-frills accounts
Remittance, or money transfer facilities
Micro insurance (life) and non-micro insurance (life and non-life)
Micro pension
Why is financial inclusion important?
Financial inclusion strengthens the availability of economic resources and builds the concept
of savings among the poor. Financial inclusion is a major step towards inclusive growth. It
helps in the overall economic development of the underprivileged population. In India,
effective financial inclusion is needed for the uplift of the poor and disadvantaged people by
providing them with the modified financial products and services.
Agent banking--- Commercial banks operate agent banking systems. This system offers a limited
scale of financial services through engaged agents in rural areas. It allows the disbursement of
inward foreign remittance, collection of cash deposits and withdrawals, utility bill payments, loan
disbursement and more.

Non-traditional banking---------
The introduction of microfinance programmed in rural Bangladesh led to the initial jump to
a financially inclusive economy. Millions of people, especially rural dwellers, were granted
access to credit, saving schemes and more.
Mobile Financial Services (MFS)-
Digital Finance Services (DFS), a FinTech platform, allows individuals and businesses to have
more hold over their personal finances and make timely decisions and transactions. This
platform consists of a range of financial services which are accessed through digital channels
like payments, savings, credit, insurance and remittances
Using technology in business is one of the four core elements of the government's "Digital
Bangladesh" vision. Since this was implemented, MFS has had the most significant
improvement in years.
Banking applications-----
With the launch of the smartphone apps by the industry players, many new features were
introduced. Through the app, one can now instantly send money without having to visit a
brick-and-mortar establishment. Moreover, people can now pay their utility bills, make
merchant payments, recharge their phones and carry out other fundamental activities. The
convenience gained through the usage of MFS has encouraged more people to utilise these
services instead of relying on traditional banking services.
 compliance is the most critical risk for banks at the moment ----how (Exam 2020)
Compliance starts at the top. It will be most effective in a corporate culture that emphasizes
standards of honesty and integrity and in which the board of directors and senior
management lead by example. It concerns everyone within the bank and should be viewed
as an integral part of the bank’s business activities.
Failure to consider the impact of its actions on its shareholders, customers, employees and
the markets may result in significant adverse publicity and reputational damage, even if no
law has been broken.
Compliance laws, rules and standards generally cover matters such as observing proper
standards of market conduct, managing conflicts of interest, treating customers fairly, and
ensuring the suitability of customer advice. They typically include specific areas such as the
prevention of money laundering and terrorist financing, and may extend to tax laws that
are relevant to the structuring of banking products or customer advice. A bank that
knowingly participates in transactions intended to be used by customers to avoid
regulatory or financial reporting requirements, evade tax liabilities or facilitate illegal
conduct will be exposing itself to significant compliance risk.
Compliance should be part of the culture of the organization; it is not just the responsibility
of specialist compliance staff. Nevertheless, a bank will be able to manage its compliance
risk more effectively if it has a compliance function in place that is consistent with the
“compliance function principles” discussed below. The expression “compliance function” is
used in this paper to describe staff carrying out compliance responsibilities; it is not
intended to prescribe a particular organizational structure.
A bank should organize its compliance function and set priorities for the management of
its compliance risk in a way that is consistent with its own risk management strategy and
structures.
Regardless of how the compliance function is organised within a bank, it should be
independent and sufficiently resourced, its responsibilities should be clearly specified, and
its activities should be subject to periodic and independent review by the internal audit
function.
Compliance risk is an organization's potential exposure to legal penalties, financial forfeiture
and material loss, resulting from its failure to act in accordance with industry laws and
regulations, internal policies or prescribed best practices. Compliance risk is also known as
integrity risk.
Banks face multiple sources of risk.
In any bank, the compliance department is the body responsible for ensuring the institution
as a whole remains compliant. Its goal is defined, and it is to ensure the bank functions
within regulation, thus preserving its integrity and reputation in the industry.
Covid-19 stimulus packages and performance of the country's banking sector
Banks have a crucial role to play in implementing Covid-19 related stimulus packages announced by
the government since the major portion of these packages is in the form of liquidity support through
the commercial banks. how the sector would manage its responsibility and how it would recover
itself from the long weakness and clear guidelines to determine the eligibility of commercial banks
for disbursing the liquidity support and highlighted the long-standing problems of the banking .

IMPLEMENTATION OF LIQUIDITY SUPPORT PACKAGES:

Bangladesh's economic recovery is expected to be driven by a fiscal stimulus package which is a

meagre 19.29 per cent of its total Covid-19 relief funds or only 0.83 per cent of its Gross Domestic
Product (GDP) and falls far short of the 11 per cent of GDP that is estimated to be required to
mitigate the socioeconomic impacts of Covid-19 .
From the outset of the announcement of the Covid-19 liquidity support packages by the
government, banks have been willing to lend to borrowers. It seems that the design of the stimulus
packages and their distribution are driving a economic recovery path for Bangladesh.
PACKAGE FOR EXPORT-ORIENTED INDUSTRIES:

As of November 2020, the Ministry of Finance's officially published report showed that 100 per cent
of the funds allocated under this package, or US$595 million, was completely disbursed to 1,992
export-oriented business enterprises through 47 commercial banks . This money was used to pay the
wages and salaries for the months of April 2020 and May 2020 of 3.5 million people working in
export-oriented industries of the country.
WORKING CAPITAL STIMULUS PACKAGE FOR AFFECTED LARGE INDUSTRIES AND SERVICES :

As of October 31, 2020, around 71 per cent of the total funds allocated under this package were
disbursed to 2,549 large industries and service sector business enterprises through 51 commercial
banks. Out of the total US$4,762 million, an amount of US$ 654 million was for the payment of
wages and salaries of 1.5 million persons working in large industries and services sector for the
months of June 2020 and July 2020 . Due to the liquidity support offered by the government under
this package, 2,549 large industries and service sector business enterprises could keep their
businesses roll out during the pandemic. This liquidity support package also protected the jobs of 1.5
million employees and workers who were working in large industries and service sector enterprises
and prevented their families from falling into financial hardship during the pandemic.
SPECIAL WORKING CAPITAL FACILITY FOR COTTAGE, MICRO, SMALL AND MEDIUM ENTERPRISES
(CMSME) SECTOR:

As of October 31, 2020, around 32 per cent of the total funds allocated under this package were
disbursed to 41,069 entrepreneurs through 56 commercial banks and 20 non-bank financial
institutions. this liquidity support package will allow 41,069 entrepreneurs of the CMSME sector to
keep their businesses running and retain the livelihoods of 2.5 million workers involved with this
sector .
Export Development Fund:

As of October 31, 2020, around 81 per cent of the total funds allocated under this package were
disbursed to 2,379 exporters through 56 commercial banks .
Pre-shipment Credit Refinancing Scheme: As of October 21, 2020, only 1 per cent of the total funds
allocated under this package were disbursed to 9 applicants through 31 commercial banks .
Special Incentive refinancing Scheme for Agricultural Sector: As of October 31, 2020, around 45 per
cent of the total funds allocated under this package were disbursed to 89,934 farmers through 43
commercial banks .
Refinance Scheme for the Low-income Professionals, farmers and Marginalised Businesses: As of
October 31, 2020, around 22 per cent of the total funds allocated under this package were disbursed
to 1,00,227 low-income farmers and small traders through 42 commercial banks and microfinance
institutions .
CONCLUSIONS AND RECOMMENDATIONS:

There are a number of concerns about the state of the banking sector during the pandemic, and its
role in the recovery of the economy. Unfortunately, there is no access to information on the true
health and performance of the banking sector during the ongoing pandemic.

A number of recommendations have been made for enabling the banking sector to play a more
constructive role in the economic recovery from the pandemic. These are mentioned below------

 Loan defaulters should not be allowed to access any of the Covid-19 related liquidity support
packages.
 Clear, objective and quantitative criteria should be declared to properly identify "affected"
businesses and individuals.
 Transparency and accountability mechanisms should be built into all Covid-19 related liquidity
support packages, and more disaggregated data on the implementation status of all liquidity support
packages should be published on a monthly basis.
 Disbursement of the government's Covid-19 liquidity support for small businesses, farmers and
low-income professionals should be expedited immediately.
 Working capital support for the affected businesses and industries should be converted to term
loans and loan repayment to banks should start in order to have a healthy banking sector.
 ECONOMY affect 2019 In Bd

Considering the duration and severity of COVID-19, we examine its impact on major economic
and financial indicators of the Bangladesh economy.

Bangladesh with around 13 percent of people have become unemployed, Meanwhile, the national
poverty is predicted to increase by 25.13 percent

it has caused a reduction of exports by 16.93 percent, imports by 17 percent, and also a decline of
average revenue for all small and medium enterprises (SMEs) by 66 percent in 2020 compared to
2019.

Even though garment factories were allowed to continue operating under the country's lockdown,
an estimated one million garment workers, or one-quarter of the workforce, were laid off due to
declining orders for export.

The pandemic reduces employment opportunities as most of the companies have stopped their
recruitment process to cut their operational costs, which increases the rate of graduate
unemployment in Bangladesh.

Bank credit would be playing a key role in the ongoing and upcoming recovery process, as the government has
opted for a credit-led stimulus package. Advances remained unaffected during the three months of lockdown,
though the effect is evident in the bills and investments.

Bangladesh is facing an unprecedented economic challenge at present, like the rest of the world. But the
pandemic has hit Bangladesh at a pivotal time when the country was making commendable progress on various
economic and social indicators.

EDUCATION

The pandemic caused a significant disruption to the educational sector in Bangladesh, In March,
Bangladesh closed all of its educational institutions in order to reduce the spread of COVID-19.
Educational institutions remained closed for over one and half year such situation drastically
affect pupils sanity and mental growth .

Recent impact of the global economic meltdown, Bangladesh also experienced severe demand
contraction in the local economy; this exacerbated the overall economic crisis of the country.
Considering the duration and severity of COVID-19, we examine its impact on major economic
and financial indicators of the Bangladesh economy.

Both domestic and international demands declined due to the outbreak and subsequent
lockdown, and, thus, producers responded by lowering output to minimize the loss, especially in
the manufacturing sectors.
Good Governance in Bank

Banks are a mainstream of the Financial system of a country. Good governance in banking sector in
Bangladesh is the most vital subject for reaming the country Economy in sustainable position. Good
governance is generally characterized by accessibility, accountability, predictability, transparency and
follows the rules of Law. Good governance assures that corruption is minimized, views of minorities
are taken into account in the service sector in any organization .It is essentially for bank because such
institution deal with fund raised from the public

There are some Principal in the good Governance in the Banking Sector :

# Board members should exercise sound judgement ,strategic objective ,corporate values, long term
objectives and strategy and control environment of the bank.

# Senior Management should effectively utilize the work conduct by the internal audit function ,
external auditors and internal control function .

# Bank Should follow sound corporate governance and pro-active practice that should be in place

#
RMG IS BANGLADESH

what is RMG sector?

The RMG sector is the largest industrial sector emerging in the country during 1970s and established
a stronghold during 1980s and further accelerated during 1990s. ... Bangladesh being a Muslim
country is yet to expand its market to the Middle Eastern, East Asian and Latin American countries.
In 2020, the share of ready-made garment (RMG) exports in Bangladesh amounted to approximately
83 percent of the total exports.

How RMG sector is contributing in the country's economy?

The sector contributes 38% industrial value addition. Earns around 78% of total export earnings.
Employs around 4.5 million workforce of which majority is women • Generates huge cliental base for
Banking, Insurance, Shipping, • Transport, Hotel, Cosmetics, Toiletries and related other economic
activities.

What are RMG products?

RMG Products offers a comprehensive range of Rice Rubber Rolls (Paddy De-husking Rolls), Rice
Rubber Polishers, Elevator Buckets, etc. for rice mills. The company belongs to the Alaska Group
which is in this industry since 1960 and has grown by leaps and bounds over years.
What is the present position of Bangladesh in RMG export?
Vietnam has overtaken Bangladesh as the world's second largest exporter of ready-made garments
(RMG). Bangladesh is now in third position, with China remaining the largest exporter, according to
the latest figures from the World Trade Statistical Review 2021 released by World Trade
Organization (WTO).২ আগস্ট, ২০২১
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Covid-19 stimulus packages and performance of the country's banking sector

Banks have a crucial role to play in implementing Covid-19 related stimulus packages announced by
the government since the major portion of these packages is in the form of liquidity support through
the commercial banks
IMPLEMENTATION OF LIQUIDITY SUPPORT PACKAGES:

Bangladesh's economic recovery is expected to be driven by a fiscal stimulus package which is a

meagre 19.29 per cent of its total Covid-19 relief funds (Table-1), or only 0.83 per cent of its Gross
Domestic Product (GDP) and falls far short of the 11 per cent of GDP that is estimated to be required
to mitigate the socioeconomic impacts of Covid-19

Ironically, the largest industries which are relatively more capable of dealing with shocks received
the greatest support from Covid-19 relief funds. Moreover, the varying speed of implementation of
the various liquidity support packages has created an unequal turnaround as bigger firms have
rebounded more strongly, owing to quick access to liquidity packages, while smaller firms have been
left behind.

PACKAGE FOR EXPORT-ORIENTED INDUSTRIES:

As of November 2020, the Ministry of Finance's officially published report showed that 100 per cent
of the funds allocated under this package, or US$595 million, was completely disbursed to 1,992
export-oriented business enterprises through 47 commercial banks . This money was used to pay the
wages and salaries for the months of April 2020 and May 2020 of 3.5 million people working in
export-oriented industries of the country. A rapid response telephonic survey of 62 RMG workers
has shown that 85.1 per cent of workers did not receive their full wages for the month of March
2020, while 14.75 per cent of the workers did not receive their full wages for the month of April
2020 . Trade union leaders estimated that 10 per cent of RMG factories did not pay their wages in
April 2020 and the industrial police reported that approximately 50 per cent of RMG factories did
not pay the Eid bonus .

WORKING CAPITAL STIMULUS PACKAGE FOR AFFECTED LARGE INDUSTRIES AND SERVICES :

As of  October 31, 2020, around 71 per cent of the total funds allocated under this package were
disbursed to 2,549 large industries and service sector business enterprises through 51 commercial
banks. Out of the total US$4,762 million, an amount of US$ 654 million was earmarked for the
payment of wages and salaries of 1.5 million persons working in large industries and services sector
for the months of June 2020 and July 2020 . Due to the liquidity support offered by the government
under this package, 2,549 large industries and service sector business enterprises could keep their
businesses afloat during the pandemic. This liquidity support package also protected the jobs of 1.5
million employees and workers who were working in large industries and service sector enterprises
and prevented their families from falling into financial hardship during the pandemic.

SPECIAL WORKING CAPITAL FACILITY FOR COTTAGE, MICRO, SMALL AND MEDIUM ENTERPRISES
(CMSME) SECTOR:
 As of  October 31, 2020, around 32 per cent of the total funds allocated under this package were
disbursed to 41,069 entrepreneurs through 56 commercial banks and 20 non-bank financial
institutions. Gender-wise disaggregation shows that 94 per cent of the beneficiaries of loans under
this package were male and only 6.0 per cent were female . However, since no data on the share of
women in the total number of entrepreneurs in Bangladesh could be obtained at the time of writing,
it could not be ascertained whether providing only 6.0 per cent of loans to women was equitable or
inequitable. It is worth noting that the government's directive was to provide at least 5.0 per cent of
the loans under this package to women, so providing 6.0 per cent of the total loans under this
package exceeds the pre-determined minimum quota for women. Nevertheless, this liquidity
support package will allow 41,069 entrepreneurs of the CMSME sector to keep their businesses
running and retain the livelihoods of 2.5 million workers involved with this sector .
Export Development Fund: As of October 31, 2020, around 81 per cent of the total funds allocated
under this package were disbursed to 2,379 exporters through 56 commercial banks .

Pre-shipment Credit Refinancing Scheme: As of October 21, 2020, only 1 per cent of the total funds
allocated under this package were disbursed to 9 applicants through 31 commercial banks .

Special Incentive refinancing Scheme for Agricultural Sector: As of  October 31, 2020, around 45 per
cent of the total funds allocated under this package were disbursed to 89,934 farmers through 43
commercial banks .

Refinance Scheme for the Low-income Professionals, farmers and Marginalised Businesses: As of 
October 31, 2020, around 22 per cent of the total funds allocated under this package were disbursed
to 1,00,227 low-income farmers and small traders through 42 commercial banks and microfinance
institutions . Among the beneficiaries of loans under this package, 6 per cent were male and 94 per
cent were female . However, since no data on the share of women in the total number of low-
income farmers and small traders in Bangladesh could be obtained at the time of writing, it could
not be ascertained whether providing 94 per cent of loans to women was equitable or inequitable.