The banking industry occupies the key position in a financial system that supplies the credit needed for a country’s economy. Working within the constraints established by the monetary authorities, commercial banking through its many credit decisions creates the deposits that act as the effective money supply for carrying on business activity. While fulfilling this prime responsibility to provide for the financing requirements of business, (consumers and government), banks still carry the overriding responsibility for deposit safety. Banks fulfill the role of a financial intermediary. This means that they act as vehicles for moving finance from those who have surplus money, however temporarily, to those who have a deficit In every day banking terms, the banks channel funds from depositors whose accounts are in credit to borrowers who are in debit.
Essay due? We'll write it for you!
Bangladesh Bank was formed in 1965 by the movement to serve the unique financial needs of the sector and it has remained to this founding principal of providing financial services to the movement. The Annual Report and Financial statement (2016), states the facts that the Bank has a share capital of 4.8 billion, total assets of over 58 billion, customer deposits of 48 billion. It is the central Bank in Bangladesh and is the largest issuer of debit cards. Today continue to be the core clientele for the Bank and account for over 70% of the business turnover. It is the only indigenous private Bank fully owned by Bangladesh Bank shareholders. The Bank directors are elected through the delegates of the movement. The Bank currently has a total employee establishment of over 1400. With liberalization of the economy and globalization of the businesses, the Bangladesh Bank embraced the new challenges by becoming a fully – fledged Bank Bangladesh Bank in 1994. The change of Chief Executive Officer and the management at Bangladesh Bank in early 2001 ushered a new era where new ideas are adopted and managers reclaiming managerial responsibilities. The main objective then was to come up with innovative business strategies that would ensure the Bank served its core customers.
The Bangladesh Bank embarked on reviewing its five year corporate strategic plan which builds on the existing strengths of the Bangladesh Bank specifically addressing growth and development, information technology and business management, enhanced service delivery, profitability and capital growth. The strategic plan for the Bangladesh Bank has been drawn up with the theme ‘Managing for Value’. The strategies are based on four perspectives: First, People; Secondly, Customers; thirdly, Financial performance and Risk; and finally, Control. The goal of the plan is to ensure that the Bangladesh Bank meets the shareholders’ expectations, provides the Bangladesh Bank with a common language and clearly understood objectives, guarantee satisfaction to its chosen customer segments and business partners. A focus on these four perspectives would result in customer satisfaction, efficient and effective processes, and motivated and prepared staff.
The instrument of primary data collection was a semi – structured questionnaire. Targeted respondents were General Managers of Finance and Administration, Corporate and Institutional Banking and Retail Banking. The design of the questionnaire was based on the literature pertinent to this study. The questionnaire was administered through personal interviews with sampled respondents to provide specific data in their departments
Strategies are inevitable for any firm’s success particularly in a competitive market such as the banking sector. The study found that building on their past successes, the Bangladesh Bank have lined up strategies which will ensure sustained growth for the coming years. Growth strategies singled out by the Bangladesh Bank include innovative service delivery to customers, broadening of the products range and services, and direct sales marketing. The managers believe that these strategies shall make it easier for the Bank to achieve differentiation and an unassailable competitive advantage over their competitors.
Table 1: The extent to which Bangladesh Bank employs various
N Mean Std. Deviation
extent to which co – op bank uses cost
leadership 5 5.6678 . 45235
extent to which co – op bank uses focus 3 1.5557 .53335
extent to which co – op bank uses differentiation 3 2.4443 .58625
extent to which co – op bank uses retrenchment 3 3.5237 .57855
extent to which co – op bank uses divestiture
3 3.8524 .04566
extent to which co – op bank uses market
extent to which co – op bank uses market
A five point Likert scale was used to assess managers’ opinion about the extent to which that Bangladesh Bank employs various strategies. The scale ranged froml – 5 where 0 – 1 . 5 represented very small extent; 1.6 – 2.5 represented small extent; 2.6 -3.5 represented moderate extent; 3.6 – 4.5 represented large extent; while 4.6 – 5.0 represented very large extent. The results shown on table 1 above indicate that cost leadership is the most used strategy (mean = 4.7) followed by retrenchment (mean = 3.7). The least employed strategies were market penetration (mean – 1.3), consolidation (mean = 1.7) and focus (mean = 1.7).
The study found that the Bangladesh Bank uses only simple strategic planning tools. The Consultancy Group (BCG) mode is used by Bangladesh Bank to classify their markets and products and to devise appropriate strategy for each group of products and markets. Despite being aware that the model oversimplifies a complex set of decisions, the Bangladesh Bank has continued to use the BCG model for strategic planning.
Disclaimer: This essay has been submitted by a student. This is not an example of the work written by our professional essay writers. You can order our professional work here.
Sorry, copying is not allowed on our website. If you’d like this or any other sample, we’ll happily email it to you.
Your essay sample has been sent.
Want us to write one just for you? We can custom edit this essay into an original, 100% plagiarism free essay.Order now
Wealth optimizer overview The Indian value advertise presents a phenomenal open door for the long haul speculators. Sharekhan offers you answer for meet your budgetary targets. Wealth Optimizer is a portfolio administration item that includes upgrading riches over the long haul. The objective isn’t just…
There’s actually been a leaked paper coming out of those sands out and they have given five different options of where they see the super rugby competition in that twenty thirty. And I want to give you my thoughts in the current state of super…
When we look back towards 2007, The Boston Celtics was one of the worst teams in all of NBA history with an appalling 24-58 record, winning approximately twenty nine percent of their games. After hearing this, I bet you would think it would be crazy…
London was the most attractive location for foreign investors in 2017 but now the increase in price and volatile returns have diverted investors to seek options in some of the other growing regions in the Northern England. These cities are, especially, attractive to overseas buyers…
People who lead hectic lives and have busy routines find it very hard to take out the trash daily and to dispose it of in a proper way. Therefore, it is only wise to opt for rubbish removal services in London. If the people don’t…
The lock-less place that came in news. A village so naive where faith is a legacy. A village that is open to all, always. Essay due? We’ll write it for you! – any subject – min. 3-hour delivery – pay if satisfied Get your price…
Bangladesh and Sri Lanka, both these countries are composed with similar traditional, religious and cultural values. On top of that, both countries have great geographical advantages and have been elevating towards success dramatically within the recent years. In comparison to Sri Lanka, the Bangladesh economy…
In Demanding Canadian experience is no way to conduct business, Elliot (2017) argues that, Canadian work experience from recently arrived foreigners is not the correct method to give employments. In the beginning he describe this by giving a case of a graduated Indian women who…
The aspect of Canadian society being satirized is that of the economic society. Rick Mercer is shining a light on political issues that harm generations to come by humoring the situation in an entertaining way. Refer to the video RMR: Minty Air Act, Rick Mercer…
How much time do you spend staring at your phone screen? Researchers found out that the average teenager checks their phone 85 times a day. Many people don’t even realize what is going on around their community because they are too busy staring at a…
India newest pride, Hima Das has taken the world by storm by becoming the first Indian woman to win a gold medal during the recent IAAF World Under-20 Championships in the 400 metre final race. She has proven herself to be a marvellous athlete who…