96th Banking Professional

 96th Banking Professional Examination, 2023

JAIBB

Governance in Financial Institutions (GFI)

Subject Code :

Time-3 hours

Full marks-100

Pass marks 45

[N.B. The figures in the right margin indicate full marks. Answer any five questions.]

1. (a) "Some directors think themselves as 'owner' of the bank, and some staffs are also responsible for supporting them"-In the context of the statement, please, discuss your assessment on Banks/Financial Institutions (FIS) in Bangladesh.

(b) Who is/are the real owner of the bank/FI? Please, justify your answer in brief.

(c) Why good governance is so important especially in the financial institutions? (d) Briefly describe the corporate governance principles issued by basel committee on banking supervision. 2. (a) What are the responsibilities and authorities of the board of directors as per 'prudential regulations for bank (2014)' issued by Bangladesh bank?

(b) With the rising number of banking frauds, what changes to corporate governance structure of banks do you suggest to tackle it?

3. (a)What do you mean by Senior Management Team (SMT)? Describe the role of SMT in a business.

(b) State the duties and responsibilities of Chief Executive Officer (CEO) of a commercial bank as per BRPD circular letter no. 18, dated 27 October 2013.

(c) Can Bangladesh Bank change the CEO? How?

4. (a)What is Capital Adequacy Ratio (CAR)? Describe the 3+5=8 importance and implications of CAR. (b) What are the components of Tier-I capital?

(c) State the indicators of liquidity risk.

5. (a) What is Enterprise Risk Management (ERM)? Describe the components of ERM.

(b) What is Emerging Risk (ER)? Narrate the characteristics of ER.

(c) What are the regulatory requirements and compliance challenges faced by financial institutions?

[Please turn over]

6. (a) Which one is the most disastrous risk for a bank/FI? Please, justify your answer.

(b) Please, briefly discuss five other important risks for

Banks/FIs.

(c) Please, discuss the risks and benefits of letting a distressed Bank/FI die.

7. (a) Why relationship with the competitors is so important?

(b) "The relationship between banker and customer is not only that of a debtor and creditor, they have other relationships too."-Describe the relationships.

(c) Describe the importance of full disclosure in corporate and financial world.

8. (a) What do you mean by market repositioning?

(b) What is meant by digital agenda? Describe the components of digital agenda. 2+6=8 (c) What does upskilling mean? State the benefits of employee upskilling. 2+6=8 9. Please write short notes on any five: 4x5=20 (a) Risk Appetite (b) Central Bank Digital Currency (CBDC) (c) Stewardship Theory (d) CEO Succession Plan (e) Problem Asset Management (f) Business Continuity Plan (BCP) (g) Legal Protection of Whistle Blowers (h) Cashless Bangladesh.

10. Answer the following questions. Answer is preferable in one sentence. Each question carries 2 marks. 2×10=20

(a) According to the companies Act, 1994, what is the minimum number of directors of a public limited company?

(b) Under which section of the Bank Companies Act, 1991, Bangladesh Bank is empowered to remove a director of a bank company?

(c) What is the minimum number of meetings of a Board to be held in a year as per Bangladesh Bank's instruction?

(d) Can a bank directly engage in the business of stock dealing?

(e) What is the minimum number of independent director in the Board of a bank company as per Bangladesh Bank directives?

(f) What is the alternative name of Tier-1 capital?

(g) How many principles are there in the Basel Corporate Governance Principles for Banks?

(h) What is the age limit for CEO of a bank?

(i) Who Can an agent of a bank encash cheques on behalf of the bank? are the secondary regulators of a bank/financial institutions? (Please name two)