Md Monirul Islam
Liquidity is very important in banking because it ensures that a bank can meet its financial obligations and cash withdrawal demands on time. A bank must maintain sufficient liquid assets to handle unexpected cash outflows and stressed financial situations. In…
Md Monirul Islam
The global financial crisis of 2008 showed that many banks suffered due to weaknesses in liquidity risk management. Therefore, Basel-III introduced internationally harmonized global liquidity standards to strengthen banks’ liquidity position. The two important liquidity standards under Basel-III are: 1….
Md Monirul Islam
Market Discipline is related to the Pillar-3 of the Basel Framework. Under the Basel Framework, market discipline means creating a more transparent and disciplined financial market through the disclosure of timely, accurate, and relevant financial and risk-related information by banks….
Md Monirul Islam
The new capital accords of Basel-III in Bangladesh were adopted to ensure stability in the banking industry. Bangladesh started implementing Basel-III on 20 January 2015, and the full implementation was completed in 2020. The following are the new capital accords…
Md Monirul Islam
Basel II and Basel III are international banking regulations issued by the Basel Committee on Banking Supervision (BCBS). Key Differences Between Basel II and Basel III Though both regulations aim at financial stability in financial institutions, there are some differences…
Md Monirul Islam
Risk management system aims at reducing or minimizing losses in a financial institution by adopting appropriate risk management strategies. If a financial institution fails to ensure an appropriate risk management strategy, it faces severe losses. The typical losses are as…