Financial Management of Private Commercial Bank in Bangladesh : An Empirical Study on Prime Bank Limited

2019 ◽  
Vol 2 (2) ◽  
pp. 27-40
Author(s):  
Md. Kaysher Hamid ◽  
Azharul Islam
Keyword(s):  
Commercial Bank ◽  
Financial Management ◽  
Management Practices ◽  
Operating Performance ◽  
Financial Statements ◽  
Special Focus ◽  
Credit Risk Management ◽  
Asset Quality ◽  
The Cost ◽  
Liquidity Gap

This paper purposes to explore the financial management practices of private commercial bank in Bangladesh based on the information provided in the financial statements. For this, Prime Bank Limited (PBL), a reputed private commercial bank operating in Bangladesh, has been studied for 2010-14. This study finds that major contributor of PBL’s operating revenue is funded income, major areas of fund employment are Secured overdraft / Quard against TDR, Cash credit / Murabaha, and Loans (General) while the major fund source is Term deposits / Mudaraba term deposits. PBL has always maintained higher return from credit than the cost of funds for deposit. However, the amount of unclassified loan is decreasing over the years while classifieds are increasing. The treasury income of PBL is increasing over the years and maximum portion of the income comes from interest income on Government Securities. In case of liquidity gap, overall positive gap is observed. The repricing gaps model for interest risk shows cumulative negative gap of PBL over the years while financing surpluses over the years are observed. Based on the analysis, this study calls for special focus of PBLs’ management in the areas of operating performance, credit risk management, and asset quality management.

scholarly journals Financial Management Practices Among Micro Enterprises and their Implications for Loan Repayment: A Case of Solidarity Group Lending of DCB Commercial Bank in Dar es Salaam

2020 ◽  
Vol 12 (12) ◽  
pp. 122
Author(s):  
Daudi Kitomo ◽  
Robson Likwachala ◽  
Cornelio Swai
Keyword(s):  
Commercial Bank ◽  
Financial Management ◽  
Management Practices ◽  
Cluster Sampling ◽  
Cash Holding ◽  
Short Term ◽  
Group Lending ◽  
Loan Repayment ◽  
Common Practices ◽  
Micro Enterprises

The aim of this study was to determine the implications of financial management practices among micro enterprises for loan repayment. The study was confined to Solidarity Group Lending (SGL) customers of DCB Commercial Bank Plc (DCB). Specific objectives included: to identify common practices of managing finances among SGL customers; to determine the extent to which the commonly identified financial management practices influence loan repayment; and to find out challenges facing SGL customers during loan repayment in DCB. A case study research design and cluster sampling were used while data were collected using questionnaires from 80 respondents. Data were analyzed using multiple regressions, and simple descriptive statistics of frequencies, percentages, mean, and range. Results indicate that the common practices of managing finances among the respondents were cash holding 73.8% (n= 59) and short term investments 38.8% (n=31). Regression results revealed that about 70% of variations in ease of loan repayment is influenced by cash holding and short term investment techniques at p=0.000 level of significance (i.e. R = 0.841, R2 = 0.707 and p < 0.05). Key challenges of loan repayment among the respondents were: losses from business (82.6%), payment delays from debtors (67.5%), and difficulty in managing group members to attend their respective loan centers (72.6%). The study recommends that SGL customers need to be educated and sensitized on various financial management techniques and their implications so that they select appropriate techniques in managing profitability and liquidity in their businesses to enhance smooth loan repayment.

scholarly journals Does Covid-19 Have an Impact on Bank Performance in Indonesia? A Comparative Analysis Based on BUKU

2021 ◽  
Vol 2 (2) ◽  
pp. 9-18
Author(s):  
Novita Indri Yanti ◽  
Agrianti Komalasari ◽  
Tri Joko Prasetyo
Keyword(s):  
Comparative Analysis ◽  
Commercial Bank ◽  
Commercial Banks ◽  
Secondary Data ◽  
Financial Statements ◽  
Bank Performance ◽  
Capital Asset ◽  
Major Focus ◽  
Management Efficiency ◽  
Asset Quality

This study aims to determine whether there are differences in the financial performance of commercial banks in Indonesia before and during the Covid-19 pandemic, with a major focus on capital, asset quality, profitability, and management efficiency based on BUKU (Bank Umum Kegiatan Usaha - Commercial Bank Business Activities). The data used in this study is secondary data, which consists of the 2015-2019 financial statements and the 1st quarter 2020 - the 3rd quarter 2020 financial statements. The sample used in this study amounted to 38 banks. The analytical method used is the Kruskal-Wallis test using the IBM SPSS version 25 software. The results of data processing and data analysis using the Kruskal-Wallis test show that there are differences in the capital (CAR), asset quality (NPL), profitability (ROA), and management efficiency (BOPO) of banking companies between BUKU 2, BUKU 3, and BUKU 4 before and during the covid-19 pandemic. The results of this study indicate that in general, the Covid-19 pandemic has an impact on the performance of commercial banks in Indonesia.

Credit Risk Management in Royal Insurance Corporation of Bhutan Limited (RICBL) and Bhutan Insurance Limited (BIL): Comparative study

GIS Business ◽  
2019 ◽  
Vol 14 (6) ◽  
pp. 486-499
Author(s):  
Dr. Kriti Bhaswar Singh
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Management Practices ◽  
Research Work ◽  
Insurance Companies ◽  
Primary Data ◽  
Credit Risk Management ◽  
Regulatory Requirement ◽  
Banking Institution ◽  
Asset Quality

Credit risk is one of the main risks that affects banking as well as non-banking institution in an economy. The present research work aims to evaluate credit risk management practices of Royal Insurance Corporation of Bhutan Limited and Bhutan insurance limited, currently only two insurance companies in Bhutan.  Primary data using structured questionnaire is collected.  Analysis of the data reveals the key area which needs appraisal and modification to improve organization’s asset quality.   Among ten variables identified as obstacle in CRM tested, majority of obstacle in CRM is due to lack of risk awareness and stringent regulatory requirement which was perceived by the employees of both organizations.

scholarly journals The Use of Financial Management Practices by Small, Medium and Micro Enterprises: A Perspective from South Africa

2014 ◽  
Vol 28 (5) ◽  
pp. 341-350 ◽  
Author(s):  
Pradeep Brijlal ◽  
Samuel Enow ◽  
Eslyn B.H. Isaacs
Keyword(s):  
South Africa ◽  
Financial Management ◽  
Management Practices ◽  
Financial Statements ◽  
Business Failure ◽  
Policy Makers ◽  
Flow Problems ◽  
Support Organizations ◽  
Accounting Reports ◽  
Micro Enterprises

This paper reports on an investigation of financial management practices used by small, medium-sized and micro-enterprises (SMMEs) in South Africa. It was found that more than half the SMMEs examined use external accounting staff to prepare accounting reports and more than 60% rely on external accounting staff to interpret and use accounting information. A majority of the SMME owners were found to lack interpretation skills and an awareness of how to use information from financial statements. An implication of this study therefore is that policy makers, business support organizations, banks and academic institutions need to focus on educating SMMEs more effectively in financial management, thereby mitigating the risk of cash flow problems and business failure.

scholarly journals Pelatihan Tata Kelola Keuangan Bagi UMKM untuk Meningkatkan Kinerja di Masa Pademi Pada Kedai Canai Incos Putri

2021 ◽  
Vol 3 (2) ◽  
pp. 156
Author(s):  
Nuuridha Matiin
Keyword(s):  
Community Service ◽  
Commercial Bank ◽  
Financial Management ◽  
Personal Finances ◽  
Management Problems ◽  
The Cost ◽  
Lack Of Knowledge

Sebagian besar pelaku UMKM tersebut memiliki masalah dalam pengelolaan keuangan, beberapa masalah pengelolaan yang dijumpai pada UMKM adalah: Masih tercampurnya keuangan usaha dengan keuangan pribadi; penentuan harga pokok produk dilakukan secara sederhana dan intuitif, tanpa menghitung biaya yang dikeluarkan dengan cermat; kurangnya pengetahuan mengenai pencatatan keuangan dan pengelolaan keuangan. Adapun kriteria penerima BPUM adalah WNI yang memiliki KTP, memiliki usaha mikro yang dibuktikan dengan surat pernyataan dari lembagapengusul, serta memiliki rekening di Bank Umum. Pengabdian masyarakat bertujuan untuk membantu UMKMmampu melengkapi administrasi dan pencatatan keuangan saat kondisi likuiditasusaha mengalami penurunan, sehingga dapat tumbuh dan berkembang kembali dalammeningkatkan produktivitas usahanya di masa Pandemi Covid-19. Keluaran dariprogram ini adalah pelaku kegiatan UMKM mendapatkan pengetahuan mengenaipengelolaan keuangan yang tepat Canai Incos Putri.The most of these UMKM actors have problems in financial management, some of the management problems encountered in UMKM are: There is still a mix of finances with personal finances; determining the cost of the product is carried out simply and intuitively, without calculating the costs incurred; lack of knowledge about financial records and financial management. The criteria for BPUM recipients are Indonesian citizens who have ID cards, have micro businesses as evidenced by a statement letter from the proposing institution, and have an account at a commercial bank. Community service aims to help UMKM to be able to complete administrative and financial records when business liquidity conditions decline, so that they can grow and develop again in increasing growth during the Pandemic Covid-19. The output of this program is that the perpetrators of UMKM activities gain knowledge about proper financial management off Canai Incos Putri.

scholarly journals Effects of Selected Financial Management Practices on Financial Performance of Commercial Banks in Kenya

2021 ◽  
Vol 6 (1) ◽  
pp. 17-38
Author(s):  
Faith Njeri Harrison ◽  
Dr. Monica Muiru
Keyword(s):  
Risk Management ◽  
Capital Structure ◽  
Financial Performance ◽  
Financial Management ◽  
Commercial Banks ◽  
Management Practices ◽  
Management Practice ◽  
Secondary Data ◽  
Credit Risk Management ◽  
The Relationship

Purpose: The main aim of the study was to determine effects of selected financial management practices on financial performance of commercial banks in Kenya. The research was guided by the following specific objectives; to determine the influence of liquidity management, capital structure management, credit risk management and working capital management on the financial performance of commercial banks in Kenya.Methodology: The research employed a descriptive research design. Census method of sampling was employed, all the 43 commercial banks formed the study units. Both primary and secondary data were used. Secondary data was obtained from the audited annual financial reports of the commercial banks in Kenya while primary data was collected using questionnaire which was designed in form of Likert scale. Descriptive and inferential statistics were used, whereby correlation and regression were used to establish the strength of the relationship between the financial management practices and financial performance of the commercial banks. Data was presented inform of tables, mean and standard deviation. Correlation analysis was performed to examine the relationship between the financial management practices and financial performance of the commercial banks.Results: The study concludes that liquidity management had positive significant effect on the financial performance of commercial banks in Kenya.  Measuring liquidity risk is important to making sure that liquidity problems are identified in time.  The study concludes that capital structure management practice has positive significant effect on the financial performance of commercial banks in Kenya. On credit risk management practice, the research found strong positive significant on the financial performance of commercial banks in Kenya. Most of financial institutions have risk eliminating strategy in place, proper risk management. Finally, the study concludes that working capital management practice has positive significant on the financial performance of commercial banks in Kenya.Unique contribution to theory, policy and practice: The research recommends that banks management should make sure that they maintain substantial levels of liquidity, so as to maintain competitive performance. Commercial institution must have a feasible capital structure in place that addresses issues such, as flexibility where changes in the capital market should be well adapted to the capital structure.

PERANCANGAN SISTEM INFORMASI MANAJEMEN KEUANGAN DI AMIK GARUT

2020 ◽  
Vol 2 (2) ◽  
pp. 128-143
Author(s):  
Tedi Budiman
Keyword(s):  
Information System ◽  
Information Systems ◽  
Financial Management ◽  
Financial Information ◽  
Financial Problems ◽  
Technological Advances ◽  
Design Program ◽  
Or Groups ◽  
The Cost ◽  
Financial Information Systems

Financial information system is an information system that provides information to individuals or groups of people, both inside and outside the company that contains financial problems and information about the flow of money for users in the company. Financial information systems are used to solve financial problems in a company, by meeting three financial principles: fast, safe, and inexpensive.Quick principle, the intention is that financial information systems must be able to provide the required data on time and can meet the needs. The Safe Principle means that the financial information system must be prepared with consideration of internal controls so that company assets are maintained. The Principle of Inexpensive, the intention is that the cost of implementing a financial information system must be reduced so that it is relatively inexpensive.Therefore we need technology media that can solve financial problems, and produce financial information to related parties quickly, safely and cheaply. One example of developing information technology today is computer technology and internet. Starting from financial problems and technological advances, the authors make a website-based financial management application to facilitate the parties that perform financial management and supervision.Method of development application program is used Waterfall method, with the following stages: Software Requirement Analysis, Software Design, Program Code Making, Testing, Support, Maintenance.

Financial Management of Tires Retail and Restaurant Business in Greater Jakarta

2019 ◽  
Vol 2 (4) ◽  
pp. 267-275
Author(s):  
Sung Suk Kim ◽  
Jacob Donald Tan ◽  
Rita Juliana ◽  
John Tampil Purba
Keyword(s):  
Financial Management ◽  
Management Practices ◽  
Working Capital ◽  
Structured Interviews ◽  
Short Term ◽  
Direct Observations ◽  
Medium Enterprises ◽  
Cash Reserves ◽  
Retained Earnings ◽  
Computerized System

This study aims to explore the financial management practices ofsmall-and-medium-enterprises (SMEs) in the Greater Jakarta (Jabodetabek). We investigate into 3 SME cases by conducting the semi-structured interviews with the owner-managers and using direct observations to know the practices of financial management of SMEs. Through the research, we have found six propositions related to the practice of short-term financial management. They apply bootstraps to ensure availability of working capital. They set aside cash reserves from retained earnings and minimize loans from financial institutions. They have the computerized system to track receivables facilitating working capital needs. They keep theirinventory control efficient to manage working capital. They screen customers using transactional records and reputations to minimize the risk of bad debts.

Forest Management In Mongolia – A Review Of Challenges And Lessons Learned With Special Reference To Degradation And Deforestation

2019 ◽  
Vol 12 (3) ◽  
pp. 133-166 ◽  
Author(s):  
Alexander Gradel ◽  
Gerelbaatar Sukhbaatar ◽  
Daniel Karthe ◽  
Hoduck Kang
Keyword(s):  
Forest Management ◽  
Land Management ◽  
Management Practices ◽  
Forest Health ◽  
Hydrological Regime ◽  
Lessons Learned ◽  
Ecosystem Functions ◽  
Special Focus ◽  
Driven System ◽  
The Status

The natural conditions, climate change and socio-economic challenges related to the transformation from a socialistic society towards a market-driven system make the implementation of sustainable land management practices in Mongolia especially complicated. Forests play an important role in land management. In addition to providing resources and ecosystem functions, Mongolian forests protect against land degradation.We conducted a literature review of the status of forest management in Mongolia and lessons learned, with special consideration to halting deforestation and degradation. We grouped our review into seven challenges relevant to developing regionally adapted forest management systems that both safeguard forest health and consider socio-economic needs. In our review, we found that current forest management in Mongolia is not always sustainable, and that some practices lack scientific grounding. An overwhelming number of sources noticed a decrease in forest area and quality during the last decades, although afforestation initiatives are reported to have increased. We found that they have had, with few exceptions, only limited success. During our review, however, we found a number of case studies that presented or proposed promising approaches to (re-)establishing and managing forests. These studies are further supported by a body of literature that examines how forest administration, and local participation can be modified to better support sustainable forestry. Based on our review, we conclude that it is necessary to integrate capacity development and forest research into holistic initiatives. A special focus should be given to the linkages between vegetation cover and the hydrological regime.

Sign in / Sign up

Export Citation Format

Share Document