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Write an Essay on “Importance of Good Government in Banks”

Created: 1 year ago | Updated: 11 months ago

Importance of Good Governance in Banks

Good governance is an indeterminate (অনির্দিষ্ট) term used in the international development literal to describe(বর্ণনা করা) how public institutions conduct public affairs and manage public resources Governance is "the process of decision-making and the process by which decisions are implemen (or not implemented)". Good governance in the banking sector is an important agenda of our country, especially in present context of the crisis the banking sector. Transparency and accountability have recently become an issue of greater concern with revitalized importance in the context of public and private responsibility of managing banks. The International Monetary Fund (IMF) has defined transparency as "an environment in which the objectives of policy, its legal, institutional (effeife) and economic framework, policy decisions (fres: ana) and their rationale, data and information related to monetary and financial policies, and in terms of agencies' accountability, are provided to the public on an understandable, accessible and timely basis" (IMF-1999). Transparency in government operations is an important pre- condition for macro-economic fiscal sustainability good governance, and overall fiscal discipline. Accountability, in the words of Messenger (1970). "is the product of a process which means that an agent, public or private, entering into a contractual agreement to perform a service will be held answerable to perform according to agreed upon terms, within an established time period and with stipulated use of resources and performance standard." Transparency is necessary to ensure accountability among the major group of participants in financial markets; borrowers and lenders; issuers and investors, and national authorities and international financial institutions. Transparency and accountability are mutually reinforcing. Transparency enhances accountability by facilitating monitoring and accountability enhances transparency by providing an incentive for agents to ensure that the reasons for their actions are properly disseminated and understood. A perfect example is the Hallmark scandal of the state-owned Sonali Bank Ltd. which occurred due to the lack of both transparency and accountability. Both the and the officials colluded in a non-transparent manner and siphoned off huge amounts of public money. The people who were caught have not yet been to administrative and legal actions, in fact they got "perverse incentives" and the honest dedicated people working in the same bank and elsewhere are pushed back into inefficiency. As the saying goes, "Bad money drives away the good money"

The transparency of financial statements of banks is secured through full disclosure and by providing fair presentation of useful information necessary for making economic decisions to a wide range of users. In the context of public disclosures, financial statements should be easy for users to interpret. Whereas more information is better than less, the provision of information is costly. Therefore the net benefits of providing more transparency should be carefully evaluated by standard setters. The adoption of internationally accepted financial reporting standards is necessary to facilitate transparency and contribute to proper interpretation of financial statements. In the context of fair presentation, no disclosure is probably better than disclosure of misleading information. Left to themselves, markets cannot generate a sufficient level of disclosure. Here is the vital role of the accountants, as the bulk portion of useful financial information used by the market participants are provided by the accounting information systems, where the preparers (the employed accountants) provide information which is authenticated by external accountants on the basis of International Accounting Standards (IAS) and International Standards of Auditing (ISA). An accountant should not depend on numbers only; one should engage one's own logic and judgment to analyze set of numbers.

With the view of strengthening good governance in the financial sector, especially in the banking sector, Bangladesh Bank embarked (c) on several financial sector reforms over the years. A large number of home grown reforms have already been taken and some are underway. Bangladesh Bank attempted to the legal framework of the financial sector, bring in dynamism, extend autonomy to the central bank, combat money laundering offences, and stop financing for terrorism. There are several other prudential norms already discussed in the previous section in relation to the Basel Guidelines and the guidelines of various Acts of Bangladesh. One important aspect is the management norms, which concern the fit and proper test for CEOs and directors of a bank, restrictions on the composition and functions of the Board of Directors. Banks have been directed by Bangladesh Bank to include one independent director in the Board of Directors. Audit Committees for all banks mandated clear guidelines, and TORS and carly warning system (EWS) were introduced. The Core Risk Management Guidelines on n risks were introduced quite some time back and credit risk assessment by External C Assessment Institutions (ECAI) have been recommended for all commercial banks. However, we have that these management norms are not followed by The are several privately owned banks where a number of family members are on the Board of Direct which is contrary to the notion of good corporate governance. Therefore one of the main challenge for the banking sector is to ensure good corporate governance which will benefit the deposit borrowers and investors: expand potential markets: broaden ownership: create alternative financing options; accelerate growth; increase employment and help reduce poverty in Bangladesh. To balance the objectives of good governance and ensure compliance of regulations, three m steps are necessary:

  • a strong and independent central bank with more focus on core banking issues,
  • a well thought out set of prudential and management norms of the central bank that are subject to frequent changes due to external political/administrative pressure, and 
  • a system of prompt corrective actions for management of crises and for legal/administrate actions against persons responsible for crises in a particular bank or in the banking 'system' a whole. 
9 months ago

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Press freedom takes influential place in a country. It represent citizen’s freedom of speech. Media can expose news without obstructer or any controls by government and organizations. There should not be control over the press. As press freedom is necessary for the preventability of corruption, development of economy and maintenance of democracy. One of the advantages of press freedom is it can help to control on the level of corruption. A country which has higher press freedom tends to lower corruption in government or some private’s agents (Brunetti & Weder, 2003). Sometimes countries might think press free threats the stable of political and it might easy be controlled by different organizations. However, again the most persuasive idea come.

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“Health for all” implies the removal of the obstacles to health that is to say, the elimination of malnutrition, ignorance, contaminated drinking-water, and unhygienic housing quite as much as it does the solution of purely medical problems such as a lack of doctors, hospital beds, drugs and vaccines. Health for All in Bangladesh contains the most comprehensive information available about primary health care services in Bangladesh, including activities in maternal and child health care, Family planning, reproductive health care, nutrition, quality of care, and health care financing.

7 months ago

Cluster Villages

 

A majority of the Bangladesh population are farmers who are settled in villages. They toil to make both ends meet and produce crops for the entire nation. Bangladesh has about 68,000 villages, which are scattered throughout the country.  A village is called the rural part of the country. It is called rural because it does not have modern facilities like cities. The main occupation of the villagers is farming. They are the primary source of the nation's agricultural production.

 

Description of Villages

Villages have either tiny hamlets of thatched huts or large settlements of tiled roofs, stones, and brick homes. An impression has been created by artists and filmmakers that an Indian village is a simple cluster of mud-plastered walls, shaded by trees, overlooking the large expanses of green fields with a few people moving slowly and of course, bullock carts. They portray a village woman with a pot on her head and walking gracefully, her skirt swaying gently. The reality is that a village is the hub of nonstop activity, with their stronger work ethics. Agriculture is tough and requires hard work. The villagers work very hard and are always trying to find innovative methods of growing wheat, rice, and lentils. 

 

Importance of Village

The village is important because it is the primary sector of agricultural production for our country. The village is the backbone of Bangladesh economy. It also plays a major role in maintaining the ecological balance of the environment. Villages are mostly covered with trees and plants. They are covered with green grasslands. One can see acres of green fields as far as the eyes could see. They provide shelter to many animals. 

Life in Village

The village life is full of contentment and happiness, as people are not in a hurry like in city life. Village people live a very simple life. Villages are mostly situated far from the hustle and bustle of urban civilization. The beauty of nature can be experienced in a village as it is surrounded by trees, flowers, mountains, streams, and farmlands. There is no pollution in the village and one can feel the freshness in the breeze. The demands of the villagers are not too high but they are still deprived of basic facilities. Clean drinking water, electricity, health center, schools, proper sanitation are a few facilities that are lacking in the villages. Their poverty is always visible in the atmosphere. 

Conclusion

My village is a small abode for happy people.  Here they live in harmony and peace. The village people are very hardworking and thus they must have a good source of upliftment. Like the village’s schools and clinics should be maintained and increased in number. The farmers should be facilitated by helping them to leverage their sales, make them notified about the modern techniques used in farming, and give them compensation and knowledge of the true market price of their crops. Thus, I would request governmental authorities to come forward and uplift the medical, educational, and farming facilities in the village.

7 months ago

Problems of urban living in Bangladesh

Cities in Bangladesh are faced with the challenges of rapid population increase characterized by crises such as lack of economic dynamism, governance failure, severe infrastructure and service deficiencies, inadequate land administration, massive slums and social breakdown. However, urban centers continue to grow, despite the severity of these obstacles. As a result, urban areas in Bangladesh have exceptionally high population density, but relatively low economic density. High population density, combined with rapid urbanization, implies a large and fast-growing urban population to manage. Dhaka city, the largest urban conurbation in Bangladesh, is one of the most densely populated urban areas in the world. However, the economic density of Bangladesh’s urban areas (GDP or value-added per square km) is relatively low from an international perspective. Economic activity is concentrated in Dhaka and Chittagong. About 9% of the Bangladesh population lives in the Dhaka metropolitan area, which contributes to 36% of the country’s GDP. An additional 11% of the Bangladesh GDP is generated by Chittagong, the second-largest city and home to 3% of the population. The economic gap between Dhaka and Chittagong compared to other medium  and small-size cities is large and widening.

 

Bangladesh needs to build an urban space that is capable of innovating, is better connected and more livable in order to make cities competitive. Bangladesh’s urban space is falling behind in all three of these drivers of competitiveness. The Dhaka metro area needs to evolve into a diversified economy with skilled human resources and an innovation capacity fueled by the cross-fertilization of ideas typical of large metropolitan areas. Dhaka metro area also needs to be better connected internally and with its peri-urban areas, and both Dhaka and Chittagong have to strengthen their connection to the global economy. Improved connectivity within Bangladesh’s system of cities is also important for productivity and export competitiveness. The development of an economically dynamic urban space, in particular in the Dhaka metro region, has occurred at the expense of livability. The livability of the urban space will become an even more binding constraint to sustained growth as Bangladesh transitions to a new business model based on higher-value industries and services, which need a highly skilled and internationally mobile workforce. This  is a tall order for Bangladesh, but planning needs to start today for Bangladesh’s cities to become more competitive in future.

 

Urbanization have crucial role to play in the economic development of Bangladesh. The circumstances under which population in Dhaka and Chittagong are growing without proportionate infrastructural development will begin to wipe out most of the gains associated with urbanization. That is, relative high levels of urbanization may not be sufficient to ensure higher levels of economic welfare in Bangladesh. This has happened in Latin America with levels of urbanization, above 80%, yet with real per capita incomes about a third that of developed nations. It could happen in Bangladesh as well unless the urban managers rise from their prolonged slumber.

8 months ago

My school days

School is said to be a temple of knowledge, the very first place that introduced you to the world and more so your own self. My school life is all about the memories I deeply cherish. The memories of not only the fun, friendship and all the sport and extracurricular but also the way it helped me find my interests. I owe it all to my school life. It has made me who I am today.

My school life has been full of different experiences over the years. It gave various opportunities to develop not only my scholastic abilities but also the art and sport side. It supported me in my sports as well as exposed me to numerous types of people. All of this accounted to make me understand how to behave socially and in building a personality which I have today.

There are numerous things that make school life the best phase in one’s life. All of this eventually is because we are young to do mistakes again and again till we realize, dumb enough to not think about people and do what we feel like doing, curious to know everything we can and most importantly still not exposed and contaminated with the evil feelings of this world. And all of this makes us build a personality of our own.

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