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BASEL–ll Compliance Status of State Owned Commercial Banks in Bangladesh: ‘A Study on Agrani Bank Ltd’

Received: 7 November 2016    Accepted: 19 December 2016    Published: 26 January 2017
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Abstract

This paper on the compliance status of Basel-II of a state owned bank will provide a detailed picture of risk management of bank as well as a gross picture of Basel-II implementation status in Bangladesh. This study will also indicate any shortfall of bank in terms of Basel-II compliance and offer suitable recommendations.. In this Paper, I have divulged the calculation of eligible capital, total risk exposure, risk weighted assets and capital adequacy ratio for Agrani Bank Limited. Following the standardized approach to calculate risk weighted assets. I have also shown the impact of Basel II adoption and problems regarding its implementation in banking industry of Bangladesh.

Published in International Journal of Economics, Finance and Management Sciences (Volume 5, Issue 2)
DOI 10.11648/j.ijefm.20170502.11
Page(s) 81-91
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

BASEL-II, Credit Risk, Market Risk, Operational Risk, Tier-1 Capital, Tier-2 Capital, Tier-3 Capital

References
[1] Agranibank.org, (2015). Agrani Bank Limited. [online] Available at: http://www.agranibank.org [Accessed 29 Jan. 2015].
[2] Akhtar, S. (2006). Basel II implementation issues, challenges and implications. 1st ed. [ebook] Karachi: Institute of Bankers Pakistan. Available at: http://www.bis.org/review/r070116e.pdf [Accessed 28 Jan. 2015].
[3] Babin, B., Carr, J., Griffin, M. and Zikmund, W. (2012). Business research methods.
[4] Guidelines on Risk Based Capital Adequacy(2010). [online] Dhaka: Bangladesh Bank. Available at: http://www.bb.org.bd/aboutus/draftguinotification/guideline/basel3capitalregulation_aug192014_draft.pdf [Accessed 2 Feb. 2015].
[5] Basel-III summary table. (2011). 1st ed. [ebook] Bank for International Settlement. Available at: http://ps://www.bis.org/bcbs/basel3/b3summarytable.pdf [Accessed 22 Jan. 2015].
[6] Brealey, R. (2006). Basel II: The Route Ahead or Cul-de-Sac?. J Appl Corporate Finance, 18(4), pp.34-43.
[7] International Convergence of Capital Measurement and Capital Standards. (2005). 1st ed. Basel, Switzerland: Bank for International Settlements.
[8] Lange, N. and Petros, M. (2009). Prudential supervision of banks in the South African context †the supervisory review and evaluation process. [online] Available at: http://www.bis.org/ifc/publ/ifcb33o.pdf [Accessed 12 Feb. 2015].
[9] Risk Based Capital Adequacy (RBCA) for Banks. (2010). 1st ed. [ebook] Dhaka: Bangladesh Bank. Available at: http://www.bangladesh-bank.org/mediaroom/baselii/circular24-2010.pdf [Accessed 2 Feb. 2015].
[10] Rose, P. and Hudgins, S. (2005). Bank Management & Financial Services. 6th ed. McGraw-Hill Higher Education, pp.484-503.
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  • APA Style

    Raad Mozib Lalon, Bazlul Kabir. (2017). BASEL–ll Compliance Status of State Owned Commercial Banks in Bangladesh: ‘A Study on Agrani Bank Ltd’. International Journal of Economics, Finance and Management Sciences, 5(2), 81-91. https://doi.org/10.11648/j.ijefm.20170502.11

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    ACS Style

    Raad Mozib Lalon; Bazlul Kabir. BASEL–ll Compliance Status of State Owned Commercial Banks in Bangladesh: ‘A Study on Agrani Bank Ltd’. Int. J. Econ. Finance Manag. Sci. 2017, 5(2), 81-91. doi: 10.11648/j.ijefm.20170502.11

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    AMA Style

    Raad Mozib Lalon, Bazlul Kabir. BASEL–ll Compliance Status of State Owned Commercial Banks in Bangladesh: ‘A Study on Agrani Bank Ltd’. Int J Econ Finance Manag Sci. 2017;5(2):81-91. doi: 10.11648/j.ijefm.20170502.11

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  • @article{10.11648/j.ijefm.20170502.11,
      author = {Raad Mozib Lalon and Bazlul Kabir},
      title = {BASEL–ll Compliance Status of State Owned Commercial Banks in Bangladesh: ‘A Study on Agrani Bank Ltd’},
      journal = {International Journal of Economics, Finance and Management Sciences},
      volume = {5},
      number = {2},
      pages = {81-91},
      doi = {10.11648/j.ijefm.20170502.11},
      url = {https://doi.org/10.11648/j.ijefm.20170502.11},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20170502.11},
      abstract = {This paper on the compliance status of Basel-II of a state owned bank will provide a detailed picture of risk management of bank as well as a gross picture of Basel-II implementation status in Bangladesh. This study will also indicate any shortfall of bank in terms of Basel-II compliance and offer suitable recommendations.. In this Paper, I have divulged the calculation of eligible capital, total risk exposure, risk weighted assets and capital adequacy ratio for Agrani Bank Limited. Following the standardized approach to calculate risk weighted assets. I have also shown the impact of Basel II adoption and problems regarding its implementation in banking industry of Bangladesh.},
     year = {2017}
    }
    

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    AB  - This paper on the compliance status of Basel-II of a state owned bank will provide a detailed picture of risk management of bank as well as a gross picture of Basel-II implementation status in Bangladesh. This study will also indicate any shortfall of bank in terms of Basel-II compliance and offer suitable recommendations.. In this Paper, I have divulged the calculation of eligible capital, total risk exposure, risk weighted assets and capital adequacy ratio for Agrani Bank Limited. Following the standardized approach to calculate risk weighted assets. I have also shown the impact of Basel II adoption and problems regarding its implementation in banking industry of Bangladesh.
    VL  - 5
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Author Information
  • Department of Banking & Insurance, University of Dhaka, Dhaka, Bangladesh

  • Department of Banking & Insurance, University of Dhaka, Dhaka, Bangladesh

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