I) As part of a consistent journey to enhance the loss absorption capacity and resilience of the banks through increasing the capital and improving the quality thereof, Bangladesh Bank has given directions to banks to implement Basel III from January 01, 2015 in phases and fully by January 01, 2019. As Basel III framework was basically the response of the global banking regulators to deal with the factors, more specifically those relating to the banking system that led to the global economic crisis or the great recession, Basel III provides improved risk management systems in banks. By practicing these risk management systems, banks therefore are expected to be more shock absorbent in future.

Do you agree? Justify your answer along with the challenges that commercial banks may face to deal with BASEL iii in Bangladesh during this crisis.

ii) Another news published on August 20, 2021, BB eases commercial paper issuance by NBFIs. The Bangladesh Bank has eased its regulations on commercial paper issuance by the non-bank financial institutions, allowing NBFIs having up to 10 per cent nonperforming loans to pool money to meet up short-term fund requirement by issuing CP. Do you think NBFIs will be benefitted through this initiative?

Answer rating: 100% (QA)

As part of a consistent journey to enhance the loss absorption capacity and resilience of the banks through increasing the capital and improving the quality thereof Bangladesh Bank has given direction... View the full answer