IMPACT OF ARTIFICIAL INTELLIGENCE AND DIGITAL ECONOMY ON INDUSTRIAL REVOLUTION 4: EVIDENCE FROM BANGLADESH

This research investigates effects of artificial intelligence and digital economy on the 4th industry revolution from the perspective of Bangladesh. Artificial intelligence affecting the labor market both positively and negatively. Because of artificial intelligence, few existing jobs have been demolished and few new jobs have been emerged as well. Digital economy in Bangladesh is now an emerging issues with the blessings of artificial intelligence. Few employment opportunities will be created in Bangladesh because of emerging digital economy. The objective of this research is to analyze these opportunities and come out with few policy recommendations to implement towards industry revolution 4. Secondary data have been used along with recent relevant literatures to achieve the above stated objective as this is an empirical research. Ideas regarding revised national plan, financial tools, emerging digital economy in Bangladesh are the prominent outcome of this research. The policy recommendations of managing the gap between digital economy and industry revolution 4 regarding artificial intelligence could be helpful to The Government of the Peoples’ Republic of Bangladesh to implement policies.

RELATIVE STANDING OF ROE AND ROCE IN EFFECTIVE LIQUIDITY MANAGEMENT: EVIDENCE FROM BANGLADESHI COMMERCIAL BANKS

This study has been designed for examining the effectiveness of liquidity management through the relative standing of ROE and ROCE of Nationalized Commercial Banks in Bangladesh for the duration of 2008–2018. Six NCBs are selected purposively as sample. The study relies on a balanced panel data set of 66 observations which are gathered from the annual reports of banks and analyzed by random effects regression model. However, the research only examined a few variables. The empirical results reveal that the selected NCBs have been portraying better standing in case of ROE than ROCE in effective liquidity management. The value of R2 of ROE is 75.25%; it signifies that the explanatory measures could clarify 75.25% of the variations in ROE. Among the liquidity measures, Assets/Shareholders Equity has highly significant negative effect; Tier 1 Capital/Risk Weighted Assets has highly significant positive effect; Deposits/Assets have some significant positive and Bank Size in terms of Deposits has some significant negative effect on ROE of the selected NCBs.

RELATIVE STANDING OF ROE AND ROCE IN EFFECTIVE LIQUIDITY MANAGEMENT: EVIDENCE FROM BANGLADESHI COMMERCIAL BANKS

This study has been designed for examining the effectiveness of liquidity management through the relative standing of ROE and ROCE of Nationalized Commercial Banks in Bangladesh for the duration of 2008–2018. Six NCBs are selected purposively as sample. The study relies on a balanced panel data set of 66 observations which are gathered from the annual reports of banks and analyzed by random effects regression model. However, the research only examined a few variables. The empirical results reveal that the selected NCBs have been portraying better standing in case of ROE than ROCE in effective liquidity management. The value of R2 of ROE is 75.25%; it signifies that the explanatory measures could clarify 75.25% of the variations in ROE. Among the liquidity measures, Assets/Shareholders Equity has highly significant negative effect; Tier 1 Capital/Risk Weighted Assets has highly significant positive effect; Deposits/Assets have some significant positive and Bank Size in terms of Deposits has some significant negative effect on ROE of the selected NCBs.

CUSTOMERS’ ASSESSMENT ON E-BANKING SERVICE QUALITY IN BANGLADESH: CHALLENGES AND STRATEGIES

This paper attempts to investigate to understand customers’ evaluation regarding service quality of e-banking in Bangladesh. It also examines the major challenges and required strategies for promoting e-banking. To conduct the study, a total number of 205 respondents were taken as sample from Chittagong region by using simple judgmental sampling technique. A face-to-face interview method was followed by using a structured questionnaire to collect the data. Five points Likert scale was used to examine the customers’ evaluation on the service quality and through statistical measures it analyze the problem. Garret’s ranking technique was applied to rank the qualitative data for analyzing challenges and required strategies of e-banking. The study reveals that from the customers’ assessment, e-banking saves time and hazard, facilitates quick and easier access to information, speedy transaction, receiving service easily, ensures accuracy, effectiveness and security, provides versatile service, anytime, anywhere banking facility. The study also found that technological disturbance, insufficient infrastructure, unavailability of service in rural areas, high service charge are the major challenges of e-banking service in Bangladesh. The customers suggests to develop infrastructure, upgrade technology, increase security measure, enhance promotion for developing customers’ awareness, introduce innovative initiative of Bangladesh bank, extend service across the country etc.

A COMPARATIVE ANALYSIS OF FINANCIAL PERFORMANCE OF NON-BANK FINANCIAL INSTITUTIONS IN BANGLADESH

NBFIs play an important role in economic development through ensuring proper mobilization of funds in Bangladesh. This study represents a comparison of nine NBFIs operating their business in Bangladesh within the period from 2016 to 2019 through using financial ratios and other measures. To analyze the financial performance this study has used ratio analysis, such as ROA, ROE, ROCE, Institutional size/ Total assets and total equity etc. The outcome of this study says that for generating return the NBFIs performance based on efficiency ratio is different from the performance based on liquidity ratio, capital ratio and other financial measures. This study suggests to NBFIs to be more conscious about loan selection and establish a brand image through providing more efficient services. It also suggests the NBFIs to finds more income generating areas to be more competitive. In the coming years NBFIs will have more prospects that will ensure the economic development of our country.

Comparison of Financial Performance Private Commercial Bank in Pakistan

Commercial banks play an important role for the purpose of sustainable economic development in a country. This paper main theme to presents the comparison of financial performance between private commercial banks in Pakistan during the period of 2015–2019 by using the method of ratio analysis and some other financial indicators. Fourteen Commercial banks out of fifteen banks are selected for comparison of financial analysis. Due to the unavailability of data, the remaining one bank is not chosen for study because, yet they did not publish their final report in 2019. The data of ratio analysis was captured by using the final report of commercial banks, which are available on the bank's official websites. This study provides information about the different ratios which directly impact on bank performance.

Financial Stability Implications of Stress Testing for Risk Taking and Credit Growth

This paper examined the literature on financial stability implication of stress testing for risk-taking and credit growth in banks. Macro prudential considered one of the most stress testing tools by Applying countercyclical Macro prudential tools to build up capital buffers in good times that can be run down during bad times. But to improve timing, monitories authorities may need to develop a comprehensive framework to monitor Macro prudential conditions and establish appropriate warning and trigger thresholds. Regarding scope, they examine the entire financial system. This entity contributes to fire sales whose default has follow-on effects, or which can exacerbate a credit crunch that is included. Liability Considerations contain a Scale of wholesale funding that is run-prone is paramount. Capital adequacy depends on the health of the overall financial system. For asset Considerations, the test indicates whether the financial system is vulnerable to deleveraging that might amplify adverse shocks, at the end authorities' development guidance about whether to close a bank and when to sell its assets to maximize taxpayer recovery. We have concluded that the financial stability implications of stress tests for risk-taking and credit growth among banks are the following: A reduction in credit is a feature on stress tests. Post-crisis reforms traded the expectation of lower credit growth for reducing the probability that the larger banks would fail. This has a high negative impact on the economy. Higher capital requirements for the larger banks have prompted a reduction in the supply of credit, especially to riskier borrowers. Smaller banks have increased their share of local market-wide lending, and larger businesses have seen quite generous credit availability in bond and leveraged loan markets. Consider the structure of the financial system and its complexity long the levels of economic integration and openness.

Financial Conditions Index and Economic Performance in Nigeria

The main aim of this study is to construct a financial conditions index for Nigeria and analyze its predictive power for future growth rate and inflationary trend. The study is based on yearly time series data from 1985 to 2018. The variables included in the construction of the index are riskless interest rate, stock market index, exchange rate, credit to private sector and interest rate spread. The weights attached to these variables are derived from ARDL coefficients, while the predictive power of the constructed index is examined within the VAR framework. The results from the ARDL model shows that credit to private sector and stock market index are the most significant factors for nominal GDP, hence having a substantial weight in the resultant financial conditions index. However, the results from VAR impulse response function and forecast error variance decomposition suggest that the constructed financial conditions index contain very little predictive information about future growth rate and inflationary trend.

Do Monetary Policy Instruments Influence Capital Market Returns in Nigeria?

This study concisely examined the relationship between monetary policy variables and performance of the Nigerian Capital Market, analyzed with appropriate econometric tools. After the analysis, the outputs revealed the following; the entire monetary policy variables employed only monetary policy rate has significant relationship with the performance of the capital market in Nigeria. It was also found that the previous information about the all share index has the capacity to predict future returns in capital market in Nigeria. On this note, the researchers are of the opinion to embark on prompt disclosure of the daily all share indexes by regulatory authorities, thereby refurbishing the efficiency of the Nigeria Capital Market. It is also suggested to adopt alternative means of disclosure apart from the national television stations and national daily newspapers because of our technological know-how in Nigeria.

The Dynamics of the Exchange Rate and Extension of Monetary Trilemma

Simultaneous making policy of interest rates, exchange rates and capital accounts can be extended to trilemma theory, contrary to its earlier theories, provided that the imbalances of the private sector, the government and the capital account adjusted through the policy variables such as the government expenditures, the interest rates on domestic deposits, the interest rates on domestic loans, effective exchange rates, foreign prices and foreign interest rates. On the other hand, the components of the extension of trilemma theory in the form of internal and external imbalances affect the exchange rate. In other words, if the real sector markets of the economy are not cleared through the aforementioned trilemma components, and policy variables, internal and external imbalances will be affected by opposite direction of net domestic assets (ΔNDA) and net foreign assets (ΔNFA) of the banking system. This is in accordance with the fundamental principles of the monetary approach balance of payments and exchange rate. Policy variables do not put pressure on the unofficial exchange rate as long as they have the same effect on the net changes in the domestic and foreign assets of the banking system. The purpose of this study is to consider the effect of internal and external imbalances on exchange rate through the simultaneous equations system, generating impulses in policy variables, and examining reactions in Iranian economy. In this paper, the monetary exchange rate determination model is analyzed and examined by using the extension of trilemma theory for macroeconomic data of Iran in the form of internal and external imbalances. The results of this study suggest that policy variables can stabilize the unofficial exchange rate (with other conditions being constant) through trading off internal and external imbalances. Thus, the economic policymaker can, while independently policing interest rates, capital accounts and government expenditures and other policy variables in this research, maintain exchange rate stability as a strategic variable and anchor the general level of prices.