Viva Material Banking Exam Study Guide

Viva Material prepared by Dulal Chandra Pattak (Banking 13th Batch) D.
U | Confidential

Viva Material by Dulal Chandra Pattak
BBA & MBA
Department of Banking
University of Dhaka

A
1. Arbitrage: It is the opportunity to buy an asset at a low price and then immediately
selling it on a different market for higher price.
2. Adjustable rate mortgage: It allows the mortgage rate to adjust to market condition.
B
3. Bank Stress Testing: An analysis conducted under unfavorable an economic
scenario which is designed to determine whether a bank has enough capital to withstand
the impact of adverse developments. Stress tests can either be carried out internally by
banks as part of their own risk management, or by supervisory authorities as part of their
regulatory oversight of the banking sector. These tests are meant to detect weak spots in
the banking system at an early stage, so that preventive action can be taken by the banks
and regulators.
4. Bank Rate: It is the discount rate that central bank charges on the loans and advances
extended to commercial banks and other financial intermediaries.
5. Bankers acceptance: A short term debt instrument issued by a firm that is guaranteed
by a commercial bank.
6. Banking: The accepting, for the purpose of lending or investment, of deposits or money
from the public repayable on demand or otherwise, and withdrawable by cheque, draft,
order or otherwise.
7. Bank: A financial establishment that invests money deposited by customers, pays it out
when required, makes loans at interest and exchanges currency. A financial intermediary
that accepts deposits and channels those deposits into lending activities, either directly or
through capital markets.
8. Beta: Beta is defined as the sensitivity of a security or a portfolio of securities to the
market as a whole. A security with beta 1.2 means it will be 20% more volatile than the
market.
9. Banker: An individual who is engaged in the business banking. An executive who works
for a bank.
10. Bank Assets: a) Physical- Land, building b) loans c) Reserves d) investment securities.
11. Broad Money: M1+M2
Viva Material prepared by Dulal Chandra Pattak (Banking 13th Batch) D.U | Confidential

12. Bill of exchange: An unconditional order issued by a person or business which directs
the recipients to pay a fixed sum of money to a 3
rd
party at a future date.
13. Bank draft: A check drawn by one bank against funds deposited into its a/c at another
bank, authorizing the 2
nd
bank to make payment to the individual named in the draft.
14. Bond: A debt instrument issued for a period of more than one year with the purpose of
raising capital by borrowing.
15. Bank Note: Paper currency of a country issued by its central bank. A non interest bearing
promissory note of BB which is payable to the bearer on demand and can be used as cash.
16. Bankruptcy Risk: The possibility that a company will be unable to meet its debt
obligations. It is caused by less cash flow from sales but higher operating costs. It is
solved by short term borrowing. If it is still nit solved, the bank becomes bankrupt.
17. Basis risk: Basis risk is the risk that the position being hedged is not affected in the same manner
as the instrument underlying the future contract.
18. Blue chip shares: Stock of a well-established and financially sound company that has
demonstrated its ability to pay dividends in both good and bad times. These stocks are usually
less risky than other stocks.
C
1. CRR: Cash Reserve Ratio means a certain percentage of deposits that banks must keep
with central bank in the form of cash. It is 6% now. Money supply and credit growth is
controlled by CRR and SLR.
2. Convertible Debenture: A type of debenture that can be converted into some other
security or stock.
3. Core Banking solutions: It the services provided by a group of networked bank
branches. Customers may access their funds and other simple transactions from any of
the member branch offices.
4. Cheque: It is a negotiable instrument instructing a bank to pay a specific amount from a
specified account held in the depositors name with that bank.
5. Collateral: Property or other assets that a borrower offers to a lender to secure a loan. If
the borrower fails or stops making the promised loan payments, the lender can seize the
collateral to recoup its losses.
6. Call money: Money loaned by a bank that must be repaid on demand. Unlike a term
loan which has a set maturity and repayment schedule. Brokerages use call money as a
short term sources of financing/ funding to cover margin accounts.
7. CML: A line used in the CAPM to illustrate the rates of return for efficient portfolios
depending on the risk free rate of return and the level of risk ( Standard deviation) for a
particular portfolio.
8. CAMELS: An international bank rating system where bank supervisory authorities rate
institutions according to six factors. C= Capital Adequacy, A= Asset Quality,

M=Management quality, E= Earning Quality, L=Liquidity Position and S= Sensitivity to
market risk.
9. Commodity Money: The use of specific commodity as a form of money. Commodities
such as gold and silver have been used for years as a method of payment. Oil has also
become a precious resource that used in this form.
10. Capital Market: A market where long term debt or equity securities such stocks and
bonds etc are traded. It consists of primary and secondary market.
11. Capital Lease: A lease that meets one or more following criteria. a) Lease term is more
than 75% of the properties economic life, b) An option to purchase the property at less
than fair market value, c) transfer of ownership d) Present value of lease payment is more
than 90% of fair market value.
12. Correspondent Bank: It is more likely to be used to conduct business in foreign
countries and act as a domestic banks agent aboard. Bank that accepts deposits of and
performs service for another bank (called correspondent bank).
13. Capital structure: A mix of companys long term, specific short term debt, common
equity and preferred equity. It is how a firm finances its overall operations and growth by
using different sources of fund.
14. Commercial paper: Negotiable short term debt certificate in bearer form, issued by
companies.
15. Credit risk: The risk that borrower will not be able to pay their debts.
16. Crowding out effect: Given a certain amount of loanable funds supplied to the market excessive
government demand for funds tends to crowd out the private demand for funds. The government
may be willing to pay increased interest but the private sectors may not. This impact is known as
the crowding out effect.
17. Call provision: This provision allows the firm to call the bonds before maturity. A call provision
requires the firm to pay a price above par value when it calls its bonds as it is a disadvantage to
the bondholder.
18. Cross hedging: Cross hedging is the use of a future contract on one financial instrument to hedge
the position in a different financial instrument.
19. Call option: Call option grants the owner the right to purchase a specified financial instrument
for a specified price within a specified period of time. A call option is in the money when the
market price of the underlying security exceeds the strike price; at the money when the market
price is equal to the strike price and out of the money when the market price is below the strike
price.
20. Consumer surplus
The difference between what a person would be willing to pay and what he actually has
to pay to buy a certain amount of a good
21. Circular note

22. Correspondent Bank: It is more likely to be used to conduct business in foreign
countries and act as a domestic banks agent aboard. Bank that accepts deposits of and
performs service for another bank (called correspondent bank).
23. Certificate of deposits: An interest bearing time obligated debt instrument issued by a
bank or saving and loan. It typically earns higher interest rate than regular saving a/c
because of keeping it for a long time.
24. CAPM: An equation that shows the relationship between expected risk and expected
return on an investment and serves as a model for valuing risky securities.
D
1. Debenture: It is basically an unsecured loan to a corporation because it is not backed by
any physical asset. It is backed by general creditworthiness and reputation of the issuer.
2. Demand Draft: It a negotiable instrument used for transfer of money. It is a bankers
cheque issued by bank. It is not dishonored for lack of money.
3. Derivatives: Derivatives are financial instruments such as forwards, future, options,
swaps whose value is based on an underlying assets, index or reference rate.
4. Divestment: Sale of an asset.
5. Documentary credit:]
6. Derivatives: Derivatives are financial instruments such as forwards, future, options,
swaps whose value is based on an underlying assets, index or reference rate.
E
1. Endorsement:
F
1. Fiscal Policy: It is government spending policies that influence macroeconomic
conditions. These policies affect tax rate, interest rate and government spending in an
effort to control the economy.
2. Factoring: The selling of account receivables on a contract basis to an agency known as
factor in order to obtain cash payment before the account due. It is form of financing.
3. Fiat Money: Money which has no intrinsic value and cannot be redeemed for specie or
any commodity but is made legal tender through govt. decree. All modern paper
currencies are fiat money, as are most modern coins. The value of fiat money depends on
the strength of the issuing countrys economy. Inflation results when govt. issues too
much fiat money.
4. Financial Leverage: The use of borrowed money to increase production volume, and
thus sales and earnings. Total debt by total assets. The greater the amount of debt, the
greater the financial leverage.

5. Free cash flow: It is the amount of cash that a company has left over after it has paid all
of its expenses including investment.
6. Fisher effect: The relationship between interest rates and expected inflation is referred to as
fisher effect. The difference between the nominal interest rate and the expected inflation rate is
the real return to a saver after adjusting for the reduced purchasing power over time period of
concern. When inflation is higher than anticipated real interest is relatively low and vice versa.
7. Floatation cost: The costs incurred by a publicly traded company when it issues new
securities. Flotation costs are paid by the company that issues the new securities
and includes expenses such as underwriting fees, legal fees and registration fees.
8. Fixed rate mortgage: When the interest rate on mortgage is locked over the life of the mortgage
it is called a fixed rate mortgage.

G
1. GDP: Gross Domestic Product is the market value of all final goods and services
produced in a country over a specific period of time.
2. GNP: GDP plus income of residents from investment made abroad minus income earned
by foreigners in domestic markets.
3. Gearing: The ratio of a companys long term funds with fixed interest to its total capital.
A high gearing is considered very speculative.
H
1. Hedge fund: A hedge fund is an investment fund open to a limited range of investors and
requires a very large initial minimum investment. Hedging is the practice of attempting to
reduce risk but the goal of most hedge funds is to maximize return on investment.
2. Hypothecation: The established practice of a borrower pledging an asset as collateral for
a loan, while retaining ownership of the assets and enjoying the benefits there from. With
hypothecation, the lender has the right to seize the asset if the borrower cannot service the
loan as per agreement.
3. Hedging: A risk management strategy used in limiting or offsetting probability of loss from
fluctuations in the prices of commodities, currencies, or securities. In effect, hedging is a transfer
of risk without buying insurance policies. Hedging employs various techniques but, basically,
involves taking equal and opposite positions in two different markets (such as cash and futures
markets). Hedging is used also in protecting one's capital against effects of inflation through
investing in high-yield financial instruments (bonds, notes, and shares), real estate, or precious
metals.
4. Horizontal merger: A merger between two firms that produce the same goods
5. Hundi:
6. Holder in due course

I
1. Issuing or opening bank: Buyers or importers bank which establishes ( opens) a L/C in
favor of a beneficiary ( seller or exporter), forwards it to an advising bank for delivery to
the beneficiary and commits itself to honor demand drafts drawn by the beneficiary
against the amount specified in the L/C.
2. IRR: The discount rate often used in capital budgeting that makes the net present value
of all cash flows from a particular project equal to zero. If many projects, the projects
with higher IRR is accepted. It assumes the cash flows from a project are reinvested at
the IRR.
3. Initial public offering: Initial public offering is a first time offering of shares by a specific firm
to the public.
4. Insider Trading: Insider information is information that someone within a company has
but that is not available to those outside the company like trade secrets, company strategy
and plans.
5. Irrevocable credit:
6. Irrevocable Letter of Credit: An irrevocable Letter of Credit cannot be cancelled or
changed without the consent of all parties, including the Exporter. Unless otherwise
stipulated, all Letters of Credit are irrevocable.
7.

J
1. Junk Commercial paper: Commercial papers that are low rated or not rated at all are junk
commercial paper. These are issued by corporations whose financial conditions are not good and
that are why the paper bears a high probability of default.

K

L

1. Lien: The legal right of a creditor to sell the collateral property of a debtor who fails to
meet the obligations of a loan contract.
2. Liabilities of Bank: a) Transactions deposits-Checkable b) Other types of deposits- CD,
Money market deposits, repurchase agreement etc c) Borrowing d) Bank capital.
3. Legal tender: Coins or bank notes that must be accepted in the payment of debt. Paper
currency and coins only. Checks and postal order are not legal tender.
4. Letter of credit: A written commitment to pay, by buyers or in importers bank (Issuing
bank) to the seller or exporters bank (Accepting, negotiating, paying bank).
5. Loro account (Vostro a/c): In correspondent banking, an account held by on bank on
behalf of another bank (the customer bank) the customer bank regards this account as its
nostro account. An account serviced by a bank on behalf of an a/c owner bank. His
account with me.
6. Liquidity Risk: The risk that a sudden surge of liability withdrawal may require an FI to
liquidate assets in a very short period of time and at less than fair market prices.
M
1. Monetary Policy: It is the process by which the government and central bank of a
country controls money supply, availability of money, interest rate to attain growth and
stability of the economy.
2. Mutual Fund: An investment vehicle that is made up of a pool of funds collected from
many investors for the purpose of investing in securities such as stocks, bonds, money
market instruments and similar assets.
3. M1: One measure of money supply that includes.. a) All coins, currency held by the
public b) Travelers checks c) Checking a/c Balance d) Negotiable order of withdrawal
(NOW) e) Automatic transfer service a/c f) Balances in credit unions.
4. M2: One measure of money supply that includes a) M1 b) Savings and Small time
deposits c) Overnight Repos at commercial banks d) Non institutional money market a/c.
It is a key economic indicator used to forecast inflation.
5. M3: One measure of money supply that includes a) M2 b) Large time deposits c) Repos
of maturity more than one day at commercial banks d) Institutional money market a/c.
6. Money: Anything that is generally accepted in payment of goods, services and debt.
Functions are Medium of exchange, Unit of account and store of value.
7. Money Market: Market for short term debt securities such as
a) Bankers acceptance
b) Commercial paper
c) Repos
d) Negotiable certificate of deposit
e) Treasury bill with a maturity of one year or less than 30 days
8. Mystery Shopping:

9. Mortgage: A loan to finance the purchase of a real asset or estate usually with specific
payment periods and interest rates. The borrower gives the lender a lien on the property
as collateral for the loan.
10. Modified IRR: It assumes that positive cash flows are reinvested at the firms cost of
capital and initial outlays are financed at the firms financing cost. MIRR is better than
IRR.
11. Margin calls: Margin call is the call from a broker to investors/participants in future contract or
other investments informing them that they must increase their equity.
12. Material Alteration: If there is a significant change in the cheque and in each change if
there is no sign of the cheque writer, the cheque will be dishonored. And if the banks
payes money against such cheque, the bank will be liable. But there is some
circumstances where bank is not liable if it pays such cheque. 1) If the changes are not
visible at first sight and if it is paid against valid duration.
13.

N
1. Niche Banking: Banks that cater to and serve the needs of a certain demographic
segment of the population. They target specific people and serve them all.
2. Narrow Money: M1
3. Negotiable instrument: A transferable signed document that promises to pay the bearer
a sum of money at a future date or on demand. Checks, bill of exchange and promissory
notes etc.
4. Negotiating Bank: In documentary credit, usually the beneficiarys bank which agrees to
pay the beneficiary by purchasing a negotiable instrument (importers or buyers draft).
5. Nostro A/C: An account one bank holds with a bank in a foreign country, usually in the
currency of that foreign country. My account with you. For local bank it is vostro
account.
6. NPV: The present value of an investments future net cash flows minus the initial
investment. If positive, the investment is done unless even better investment exists.
7. Notary Public
O
1. Operating Lease: A lease for which the lease acquires the property for only a small
portion of its useful life. It is commonly used to acquire equipment on a short term basis.
2. Operating Leverage: The percentage of fixed costs in a companys cost structure.

P
1. Prime Lending Rate/Prime Rate: It is the interest rate that a bank charges to their most
creditworthy and valued customer.
2. Promissory note: A document signed by a borrower promising to repay a loan under
agreed upon terms.
3. Payback period: The length of time required to recover the cost of an investment. It
ignores the time value of money and cash flows after the payback period.
4. Put option: A put option grants the owner the right to sell a specified financial instrument for a
specified price within a specified period of time. A put option is in the money when the strike
price of the underlying security exceeds the market price; at the money when the market price is
equal to the strike price and out of the money when the strike price is below the market price.
5. Phillips curve: The trade-off between unemployment and inflation such that a lower
level of unemployment is associated with a higher level of inflation
6. Payment in due course: Means payment in accordance with the apparent tenor of the
instrument in good faith and without negligence to any person in possession thereof
under circumstances which do not afford a reasonable ground for believing that he is not
titled to receive payment of the amount there in mentioned.

Q

R
1. Repo Rate: Repurchase agreement is the rate at which our banks borrow money from
BB. It is done to inject money in the economy.
2. Reverse Repo: It is opposite of repo. It is the rate at which central bank borrows money
from the banks. It is done to decrease the money supply from the economy.
3. Refinancing Risk: The risk that the cost of re-borrowing funds will rise above the
returns being earned on asset investment. Maturity of liability< Maturity of asset.
4. Reinvestment Risk: The risk that the returns on funds to be reinvested will fall below
the cost of funds. Maturity of Liability> Maturity of Asset.
5. Risk management: Risk management is the deliberate acceptance of risk for profit
making.
6. Risk appetite: Risk appetite is the level and type of risk a bank is able and willing to
assume in its exposures and business activities, given its business objectives and
obligations to stakeholders.

7. Revocable line of credit: A source of credit provided to an individual or business by a bank or
financial institution, which can be revoked or annulled at the lender's discretion or under
specific circumstances. A bank or financial institution may revoke a line of credit if the
customer's financial circumstances deteriorate markedly, or if market conditions turn so adverse
as to warrant revocation, such as in the aftermath of the 2008 global credit crisis. A revocable
line of credit can be unsecured or secured, with the former generally carrying a higher rate of
interest than the latter.
8. Revolving credit: A line of credit where the customer pays a commitment fee and is then
allowed to use the funds when they are needed. It is usually used for operating purposes,
fluctuating each month depending on the customer's current cash flow needs.
9. Revocable Letter: A revocable Letter of Credit can be revoked without the consent of
the Exporter, meaning that it may be cancelled or changed up to the time the documents
are presented. A revocable Letter of Credit affords the Exporter little protection;
therefore, it is rarely used.
S
1. SLR: Statutory Liquidity Ratio is a part of minimum percentage of deposits that a bank
has to maintain with BB in the form of gold, cash or other approved securities. It is 19%
now.
2. SDR: Special Drawing Rights is a reserve currency created by IMF to reduce the
pressure on gold and the US dollar in international transactions.
3. SML: A line that graphs the systematic or market risk versus return of the whole market
at a certain time and shows all risk marketable securities. (Beta)
4. Systematic Risk: The risk inherent to the entire market or entire market segment. Also
called nondiversiable risk. Interest rates, recession and wars etc.
5. Standard Deviation: The measure of variability of data around the average or mean
value of the data. It is applied to the annual rate of return of an investment to measure the
investments volatility.
6. Spread: It is the difference between lending and borrowing rate. It is the difference
between bids and ask price.
7. Shelf registration: Shelf registration means registration with the SEC so that the firm can
publicly place securities without the time lag. Through this process firm can issue new securities
at any time up to two years by fulfilling SEC requirements.
8. Short selling: Short selling means selling of securities that are borrowed with the intent of
buying those securities to repay what was borrowed.
T
1. Treasury bill: It is a short term securities issued by BB on behalf of government. It is
highly secured mode of investment.

2. Tier-1 Capital: The core capital of a bank comprising paid up share capital, excluding
cumulative preference shares, reserves; retain earning and 3
rd
party interest.
3. Trade Secrets: It refers to all knowledge developed by a firm, which it guards as
proprietary; in a narrow sense, trade secrets designate an alternative to patents and
copyrights as a means to protecting inventions, formulas, and the like.
4. Travelers cheque:
U
1. Unsystematic risk: Company or industry specific risk that is inherent in each
investment. It is divesiable. Strike by employees.
V
1. Venture capital: Money provided by an outside investor to finance a new, growing or
troubled business. It is investment is highly risky business.
2. Vostro Account: Your account with me.
W
1. Working capital: Current assets minus current liabilities. It measures how much in
liquid assets a bank has available to operate day to day operations.
2. Weighted average cost of capital: It is the maximum acceptable return that a company
must earn on an existing asset base to satisfy its creditors, owners and other providers of
capital. It reflects the overall costs of combined debt and equity capital used to finance
business operations or acquisition.
3. Whistle Blowing: whistle blowing is the disclosure by an employee of illegal or
unethical conduct on the art of others within the organization.

X

Y

Z

1. Zeta Model/ Z-Score: It calculates the chances of a public company going bankrupt with
a two year time period. If the score is below 1.8, the chance is higher. Z=
1.2A+1.4B+3.3C+0.6D+1.0E. Here, A= working capital/Total assets, B= Retain earning/
Total assets, C= EBIT/Total assets, D= Market value of equity/ Total asset and
E=Sales/Total asset.

Acts:
1. Negotiable Instrument Act-1881
2. Bank Company Act-1991 (14 number Act)
3. Bangladesh Bank Order 1972
4. Bangladesh Currency oreder-1972
5. Artha Rin Adalat Ain-2003
6. Financial Institution Act-1993
7. Money Laundering ordinance-2012
Models
1. Duration
2. Repricing Model
3. Five C Model
4. FIRDL Model
5. Maturity Model


Organizations
Credit Rating agency
Ministry of Finance
Ministry of Commerce
Dollars
1. US Dollar = USD
2. Singapore dollar = SGD
3. New Zealand dollar =NZD
4. Australian Dollar = AUD
5. Canadian dollar = CAD
Central Banks

Basic Information

Scheduled Banks-47
State owned-4
Specialized-4
Private commercial-30
Conventional PCBs-23,
Islamic -7
Foreign-9
1. Introduction of Telephone Banking: Standard Chartered Bank
2. Introduction of Mobile Banking: Dutch-Bangla Bank
3. Introduction of School Banking: Estern Bank
4. Introduction of Q-Cash/Ready Cash Card: Janata Bank
5. Introduction of Debit Card: Standard Chartered Bank
6. First Private commercial bank: AB Bank Ltd.(Foreign and Native ownership)
7. First Private commercial bank: National Bank Ltd.(Native ownership)
8. Highest Branch: Sonali Bank(state owned Commercial Bank)
9. Highest Branches: Islami Bank Bangladesh ltd( Private Commercial Bank)
10. Only does corporate banking: Citi Bank N/A

Introduce Yourself:
Well, I am Dulal Chandra Pattak. My Fathers Name is Mr. Gour Chandra Pattak. My Mothers Name is
Mrs. Purnima Rani Pattak. I have passed my S.S.C and H.S.C examination both from R.K.B.K Harish
Chandra Collegiate Institution. After that, I admitted into Dhaka University in the department of Banking.
I have completed my BBA and MBA degree from Department of Banking, University of Dhaka. I want to
be banker. Thats why, I have selected banking as major in both BBA and MBA and I have prepared
myself accordingly so that I can do well in banking profession. In completing my BBA and MBA, I have
studied almost 50 courses, out of these there are many courses that are directly related to banking like,
1. Principles and Practice of Banking
2. Comparative Banking
3. Retail Banking and E-Banking
4. Investment Analysis for Banks
5. Bank marketing
6. Merchant Banking And Investment Banking
7. Islamic Banking
8. Central Banking: Regulation and Supervision
9. Lending Risk Analysis and Credit Risk Management
10. Treasury Management
11. Foreign Exchange Management
12. Bank Fund Management
13. Microfinance and Rural Banking
14. Risk Management in Banks
15. Customer Service and Innovative Banking
Since I am a Banking graduate and post graduate, I know the functions, assets, liabilities of a bank. I
know the risks of banks and how to minimize those. Moreover, I know Duration Model, Re-pricing
Model, FIRDL, and SERVQUAL. I can analyze the industry by applying SWOT, Five forces Model,
Generic Model, PESTEL, Financial Ratios etc.
A set of acts, laws, regulations, and guidelines have been enacted and promulgated time to time since
BBs establishment which helped BB to perform its role as a central bank particularly, to control and
regulate countrys monetary and financial system. Among others, important laws and acts include:
1. Bangladesh Bank Order, 1972 (P.O. No. 127 of 1972)
2. Bank Company Act, 1991
3. The Negotiable Instruments Act, 1881
4. The Bankers Book Evidence Act, 1891
5. Foreign Exchange Regulations Act, 1947
6. Financial Institutions Act, 1993

7. Bank Deposit Insurance Act, 2000
8. Money Loan Court Act, 2003
9. Micro Credit Regulatory Authority Act, 2006
10. Money Laundering Prevention Act,2012
11. Anti-terrorism Act, 2009 and
12. Anti Terrorism (Amendment) Act, 2012
13. Basel Accord
14. Credit Risk Management Guidelines of BB
15. Credit Risk Grading of BB
On the other hand, regulations and guidelines broadly include Bangladesh Bank Regulations and Foreign
Exchange Regulations.

To be a successful banker, one needs to be regular, sincere and honest. Throughout my educational life, I
have nurtured these qualities in my life. I am very regular because I have almost 100% attendance in all
the courses in my class. I am also very sincere because I never missed the deadline of any assignment,
presentations and term paper. And I can assure about my 100% honesty.
My objective is to obtain a suitable position in a dynamic organization like yours where I can practice my
honesty, sincerity and highest level of professionalism with challenge and advancement to achieve the
organizational goals.
During my educational life, I was not just confined to books. I was engaged in debating, organizing
events, playing games like football, cricket, badminton, chess etc.
Why I should recruit you?
Important fitness:
1. Educational fitness
2. Physical Fitness
3. Mental fitness
4. Fitness as a human being: Honesty, Regularity and sincerity.
5. Smartness
6. Stamina
7. I can work under pressure.
8. I never take rest keeping any work undone.
Assets:
1. I am not a mere business graduate and Post graduate, I am a Banking Graduate. So, my
educational fitness.
2. My honesty, sincerity and regularity.

3. I have a good negotiating capacity and bargaining power.
4. My physical fitness
5. My quick decision making power.
6. I can work under pressure
7. I can work in a team very well
8. My stamina
9. I can easily motivate people
10. I can successfully organize many events like sports, cultural, picnic or organizational ceremonies.

Weakness:
1. If I am given a sum to do, although I do it correctly for the first time. I feel like double checking it
and to do this, I loss some time.
2. Another is Sometimes I get myself devoted in a particular work very much that I forget the
minor activities like calling to friends etc.
3. Another weakness is that I am in love with the film of Uttam Kumar and the novel of Falguni
Mukherjee. If I get any of them, I cannot but watch the movie or read the novel instantly. If there
is an exam, still I do it. But I am trying to overcome all these things day by day.
Problems in the banking sector
Liquidity crisis:
Increasing Default loan
Decreasing investment
Decreasing profit and increasing expenses
Less compliance
Politics in Banking
Appointment of political director
Rate of interest is high: In china and Vietnam it is 3/4 % but in BD it is 15%
Loan is given to Export and Import not to industry that increases GDP and Employment
Decreasing FDI: Political instability, Red tapes, Bad infrastructure, Power shortage,

Solution:
Discouraging loan to Government
Decreasing default loan
Not investing in share market by taking loan
Giving punishment to those who crimes in financial sector.

The major difference between banks and FIs are as follows:
FIs cannot issue cheques, pay-orders or demand drafts.

FIs cannot receive demand deposits,
FIs cannot be involved in foreign exchange financing,
FIs can conduct their business operations with diversified financing modes like
syndicated financing, bridge financing, lease financing, securitization instruments, private
placement of equity etc.
Specialized Financial Institutions:
1. House Building Financial Corporation(HBFC)
2. Palli Karma Sahayak Foundation(PKSF)
3. Samabay Bank
4. Grameen Bank
Banks
52 scheduled & 4 non-scheduled banks (4 state owned, 4 Specialized, 28 Conventional PCB, 7
Islamic, 9 foreign)
Non Schedued-4
Ansar VDP Unnyan Bank
Karmasanstan Bank
Probashi Kollan Bank
Jubilee Bank

NBFIs
31 NBFIs
Insurance Companies
18 Life and 44 Non-Life Insurance Companies
Micro Finance Institutions
599 MFIs
Bangladesh achieves Ba3 (Moody's) stable rating for 4th consecutive years (2010-13) and BB-
(S&P) sovereign rating with stable outlook for four consecutive years (2010-13).

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Viva Material prepared by Dulal Chandra Pattak (Banking 13th Batch) D.

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