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What are the characteristics of insurable risks?

Posted on January 20, 2015
What are the characteristics of insurable risks? In order for a risk to insurable, its potential loss must have the following characteristics: The loss must occur by chance; The loss must be definite; The loss must be significant; The rate of loss must be predictable; The loss must not be catastrophic to the insurer. The loss must occur by chance   To be insurable, the potential loss of the risk should be unexpected, unforeseeable and not intentionally caused by the insured, Read more [...]

Case: Cheque paid at the counter of the bank

Posted on January 20, 2015
Case: Cheque paid at the counter of the bank but account holder claimed non-issuance of that cheque.   Bank Agami used to maintain an STD A/C of a customer. Account was being operated by one Mr. Ayub Ali. He was running trading business of his father-in-law. His father-in-law was a big merchant of Chittagong who was involved in import business of powdered milk. As a representative of father-in-law Mr. Ali maintained an office in Dhaka adjacent to the concerned branch of the Bank Agami. Mr. Read more [...]

Exchange Rate in Foreign Exchange Transactions

Posted on January 15, 2015
Exchange Rate in Foreign Exchange Transactions   Each country has their own currency and in international transaction it requires conversion of one currency into another. These conversions take place in the Foreign Exchange Market. In Foreign Exchange Market, foreign currencies are bought and sold. The rate of exchange needs to be settled before conversion of one currency with another currency and thus the rate at which the conversion is done is called Exchange rate. The Bank quotes two Read more [...]

How insurance risk is handled?

Posted on January 14, 2015
How insurance risk is handled? An individual is always concerned because of the uncertainties of life. He does not know whether or not a given loss will occur to him individually. For an individual, the risk is very large. This is simply because an individual cannot obtain a sufficient number of exposures to have accurate predictions as to occurrences of losses. It is not the probability of loss which causes difficulty, but rather the uncertainty as to whether an individual will be among those who Read more [...]

Holder in Due Course and Payment in Due Course

Posted on January 12, 2015
Holder in Due Course and Payment in Due Course Holder in Due Course : According to Section 9 “holder in due course means any person who, for consideration, became the possessor of a promissory note, bill of exchange or cheque, if payable to bearer, or the payee or endorsee there of if payable to order, before the amount mentioned in it became payable, and without having sufficient cause to believe that defect existed in the title of the person from whom he derived the title.   Conditions Read more [...]

Concept & History of Bank

Posted on January 12, 2015
Concept & History of Bank   Concept & History of  Bank and the Banking System in Bangladesh Concept of Bank  The historians of banking tell us that the word ‘bank’ comes from Italian word ‘banko’ which means bench. It is thought that the banking in an unorganized structure started in Babylon some four thousand years ago. People of that period made transactions sitting on a long bench in the open street. The banking in an organized form started at a later day in Greece Read more [...]

Five steps in planning

Posted on January 6, 2015
Five steps in planning   Discuss the five steps in planning? Ans.: We usually have some to do before we begin to write a report. Even if we are preparing a strictly informational report that does nothing more than transmit facts, we must still gather those facts and arrange them in a convenient format.When we write any report that we follow the series of steps which are given below: 1. Define the problem and the purpose 2. Outline the issues for investigation 3.Prepare a work plan 4.Conduct Read more [...]

Information-sharing meetings differ from problem -solving

Posted on January 6, 2015
Information-sharing meetings differ from problem -solving   How do information-sharing meetings differ from problem -solving or decision making? Ans. Meeting are called to solve problems or share information. Information-sharing meeting is a sitting of a group people for proper decision on a discussing matter/topic. Meeting can be an extremely useful forum for making key decisions and co-ordinating the activities of people and departments. Theoretically, the interaction of the participants Read more [...]

Factors to be considered evaluating a proposal

Posted on January 6, 2015
Factors to be considered evaluating a proposal Identify and briefly describe the factors to be considered when evaluating a proposal? Certain analytical reports are called proposals; these include bids to perform work under a contract and pleas for financial support from outsiders. Such bids and pleas are nearly always formal. The goal is to impress the potential client or supporter with your professionalism, and this goal is best achieved through a structured, deliberate approach.   Formal Read more [...]

Shariah

Posted on January 6, 2015
Shariah   Shariah: The basic principle of the Shariah which serves as guide line in this respects is that if there is more than one provider of capital to a business undertaking, profits can be distributed among them in proportions mutually agreed upon, but losses, if any have to be borne by them strictly in proportion to the capital provided by each party. In most of the earliest theoretical models of Islamic banking, shareholders’ equity and investment deposits were deemed to be the Read more [...]

Socio-economic objectives of Islam

Posted on January 6, 2015
Socio-economic objectives of Islam The socio-economic objectives of Islam.  The financing activities of Islamic banks have to be directed towards achieving the Islamic Socio- economic objectives. These objectives, briefly, are the promotion of a pattern of growth best suited for the eradication of poverty, equitable distribution of income and wealth and sufficient opportunities for gainful employment for all. It is found that the first concern of policy –makers in a country which proposes Read more [...]

Corporate governance especially relevant to Islamic financial institutions

Posted on January 6, 2015
Corporate governance especially relevant to Islamic financial institutions Why is corporate governance especially relevant to Islamic financial institutions and what advantages does it give them?   Ans.: Corporate governance especially relevant to Islamic financial institutions because it involves a set of relationships between a company’s management, its board, its shareholders and other stakeholders. It provides a structure through which the objectives of the company are set and the Read more [...]

Step to corporate governance Islamic firms globally

Posted on January 6, 2015
Step to corporate governance Islamic firms globally What steps have already been taken to ensure corporate governance Islamic firms globally and what further proposals have been made for their future development?   Ans. : A well defined and clear organizational structure; An independent Shariah Supervisory Board responsible for ensuring compliance with Shariah rules and principals in all its activities; An audit Committee comprising non- executive directors, together with a well –defined Read more [...]

BB governor asks banks to ensure defense against malpractices

Posted on January 4, 2015
BB governor asks banks to ensure defense against malpractices   Bangladesh Bank (BB) Governor Dr Atiur Rahman has asked all banks to ensure defense system against banking malpractices. "A good corporate governance system needs to be in place to reward the worthy and punish the habitual offender. This is the first line of defense against banking malpractices and derelictions of duty," the central bank chief said while speaking at the Nurul Matin Memorial Lecture on 'Ethics in Banking' Read more [...]

Basic ideas about Risk and Insurance

Posted on January 4, 2015
Basic ideas about Risk and Insurance Basic ideas about Risk and Insurance is known to all this is my opinion. Most of the bankers have know knowledge about insurance. For this reason I try to represent here a basic knowledge about risk and insurance related information. What is risk? Risk has been defined as the uncertainty as to the occurrence of an economic loss.It is the passivity of adverse result from a desired outcome. Risk and probability are not synonymous. We must understand the Read more [...]