1

Practices of Corporate Governance in Banking Sector: Evidence

from Bangladesh Banking Sector

Nowmin Miraz

Executive Summary

Corporate Governance largely determines how well the interests of the stakeholders are being
maintained. Nowadays corporate governance is the very common word in the business sector in
Bangladesh. In the recent years, there is some scandal on the banking sector in Bangladesh which
creates a risk on the economy and the customers are not willing to save money in the bank.
Corporate governance has responsibility for ensuring the accountability, transparency, and fairness
on the corporate sector. Without good corporate governance, it is impossible for the security of the
interest of the shareholders and the related stakeholders of the banking industry. The central bank
of Bangladesh is Bangladesh Bank and Bangladesh bank as a central bank provides the corporate
governance guidelines and the entire private and public bank must be followed. If financial sector
collapses, the whole economy will also collapse. Hallmark Group made a BDT 4000 crore scam.
Six commercial banks were involved with BDT 200 crore loan scam of Bismillah Group. Basic
Bank scam of BDT 4,500 crore loan approvals without proper documentation and scrutiny has
brought the issue to the fore again. These types of fraudulent activities indicate the poor quality
corporate governance and also the inability of the corporate governance in Bangladesh. It is wisely
said that if the financial sector collapsed any time the whole economy will be collapsed. The proper
environment for the corporate governance is a must and this responsibility mostly on the
Bangladesh Bank the central bank of Bangladesh.

Introduction
2

Corporate governance is the system of rules, practices and processes by which a firm is directed
and controlled. This study emerges in the recent century in the world after the scandal of the big
firm in the corporate sector all over the world like the Enron and Andersen in the United States of
America. The demand for these topics in the corporate sector is increasing day by day because it
ensures the monitoring and controlling the effectiveness of the rules and regulations on the
business sector. This research study deals with the concepts about the practices of the corporate
governance on the banking industries and also recommends the fair condition for the industries
(Okpara and Idowu, 2013).

Corporate governance ensures the interest of the shareholders and the stakeholders of the business
entity by practicing the corporate governance guideline on the corporate sector. Corporate
governance is not only important for the company’s directors but also at the same time it is
important for the shareholders and the stakeholders who are engaged with the business
organizations. The market researchers find that the market participant is also interested in the
corporate governance practices on the corporate sector. The main aim or objectives of the corporate
governance is that to clear or transparent the corporate environment from the manipulation or the
other scandal of financial systems. In Bangladesh, there are private banks and the Government
bank on the corporate sector (Okpara and Idowu, 2013).

A good corporate governance of the banking sector can improve the whole economy of a country
like Bangladesh. The banking sector has the great role of the business sector for developing the
country’s economy. The need for the corporate governance can create some problems and conflicts
among the stakeholders for the two perspectives like the purpose of the stakeholders and the
insufficient information about it. Corporate governance must be practiced by the entire bank of
our country for ensuring the suitable business condition on the banking sector in Bangladesh. The
corporate governance practices of the banking sector in Bangladesh are an important concept for
the well being of the country’s economy and business sector (Arun and Turner, 2009).

Corporate governance is an odd paramount importance to the company and is almost as important
as its primary business plan. When executed effectively, it can prevent corporate scandals, fraud
and the civil and criminal liability of the company. The purpose of the study of the corporate
governance is indicating the corporate governance practices and the environment of the corporate
governance of our banking sector. Due to the crisis of the Asian Economic the practices of
3

corporate governance are considered to be the security in the recent years in Asia. For the banking
sector, the corporate governance plays the significant roles in improving the financial decision-
making procedures for the normal course of business in the banking sector. The practices of
corporate governance specify the values for the entity, ethics for the entity and the moralities for
the entity making the corporate sector safe and secured. So this report tries to indicate the actual
condition and environment on the banking sector for the business purposes (Arun and Turner,
2009).

The importance of corporate governance in today’s progressive and aggressive business

environment cannot be denied. It is an important topic for study and research. There are several
analysts defining the corporate governance in their own opinions and they also published their
researches on the international standard journal. The study of the corporate governance basically
follows some analyst papers and journal. Here is some definition of the famous analyst on the
corporate governance sector.

Corporate Governance

According to (Turrent & Ariza, 2016), Corporate governance monitors management

effectiveness and makes sure legal conformity by preventing improper and irregular behavior and
ensures the protection of shareholders’ rights and investors’ confidence.

Quality of corporate governance also scrutinizes the transparency and accountability of the firm’s
governance-related issues and helps to assess whether the firm is better or poorly governed (La
Porta et al, 2000).

According to (Biswas, 2012), the major objectives of the code of corporate governance are to
improve the quality of board governance and to increase the accountability to minority
shareholders. Code of corporate governance is also a relevant issue in academic research because
of a chain of financial scandals worldwide and various corporate scandals such as Enron and
Andersen in US and Marconi in the UK (Khanchel, 2007).
4

Bala and Moniruzzamand (2011) found in a study that corporate governance guidelines should
include how tax should be reported, additional statement of tax compliance and computation in
details, the area of tax rebate etc.The changes of the corporate governance guidelines 2012 & 2016
such as criteria and qualification of independent director; some additional statements in the
directors’ report; mandatory requirement of separation of chairman and CEO; constitution of audit
committee, chairman of audit committee; role of audit committee; duties of CEO and CFO on
financial statements; and collection of compliance certificate from professional accountant or
secretary.

Weak corporate governance (and associated risk management practices) in the corporate sector
increases the risk profile of companies and exposes banks and other lending institutions to a greater
risk of loss than would otherwise be the case. (Mr. Geof Mortlock, 2012) Encouraging bank
directors and senior management to take responsibility for satisfying them that their bank has
effective systems for managing all material business risks and that those systems are being applied
at all times. (Dr. Y R K Reddy, 2011)Corporate governance in banks is particularly important for
economic growth because economic development is dependent, to a large extent, on a well-
functioning, stable and soundly managed banking system. Given the importance of banks and
corporate governance in Bangladesh, it is imperative to promote corporate governance practices
for banking organizations in this country (Islam, Sathye & Hu, 2015).

The results of this study show that the corporate governance practices of banks in Bangladesh have
been significantly improved since the introduction of the CCG. This study also reveals that the
comprehensive measure of corporate governance, which includes all aspects of corporate
governance, is positively related to Bangladeshi banks’ performance. Nevertheless, the effect is
not significant (Islam, Sathye & Hu, 2015).

As a matter of fact, the relationship between corporate governance and bank performance has
remained controversial. On the one hand, some aspects of corporate governance (exempli gratia:
ownership stake of managers) are significantly related to bank performance; on the other hand, the
improvement of a few other aspects of corporate governance (e.g. number of outside directors)
does not have any significant effect on bank performance (Islam, Sathye & Hu, 2015).
5

The study also revealed that some corporate governance measures, such as the proportion of
independent directors and independent supervisory directors, size of the board, managers’
incentives and audit committee, have no significant effect on company performance (Islam, Sathye
& Hu, 2015). The improvement of some aspects of corporate governance does not have any effect
on bank performance, whereas some other aspects of corporate governance are significantly related
to bank performance (Islam, Sathye & Hu, 2015).

The issues of CG are broad and complex but it is very important for a bank to create and maintain
its credibility and acceptability to important stakeholders. The issues under investigation in CG in
the Bangladeshi banking sector had mixed levels of compliance (Rahman, Arifuzzaman &
Alam).Out of the six broader areas of governance practice in the arena of board issues, shareholder
rights and disclosure of information, disclosure and transparency and HRM practices the condition
appears to be susceptible. However, banks are doing better in audit practices and financial
reporting as they fall within acceptable limits (Rahman, Arifuzzaman & Alam).

The result could provide some useful insights for future research in the sector of CG practices in
the banks and bank management in addressing the areas of CG attributes, where significant
improvement is needed to increase commitment to sound governance so as to bring more
transparency and public confidence in the banking sector (Rahman, Arifuzzaman & Alam). All of
we know that the improvement of Corporate governance practice is a subjective matter that can be
vary from firms to firm like one firm can use score based on practices where there is ‘‘comply or
explain’’ requirement(Alexandre Di Miceli da Silveira).

According to (Klapper and Love, 2004) in their research project they have mentioned that there
are three main potential determinants of firm-level CG quality: the ‘‘utility’’ of CG, the nature of
the operations of the firm and its size.

Durnev and Kim (2005) they have analysedpotential determinants of the quality of firm-level CG
Practices. Whatever they have analysed was that how some different attributes of firms influence
their choice of Corporate governance practices and how they interact with the legal environment.
The attributes what they have found depends on empirical evidence that that make firms adopt
good CG practices are their growth opportunities, their need for external funding, both debt and
equity, and their concentration of ownership.
6

Anand et al. (2006) empirically examined that the presence of a majority shareholder or an
executive block holder is negatively associated with good CG practices. There are so many
methods of sample selection & corporate governance practices scoring. Like According to
Klapper and Love (2004), they use scores from a questionnaire that involves qualitative
evaluations. According to Durnev and Kim (2005), transparency and disclosure index computed
by Standard and Poor’s can also be used.

Imen Khanchel summarize the determinants of strong corporate governance by reviewing the
theoretical and empirical literature on corporate governance. Some of the important determinants
of Good corporate governance are as follows.

Independence of committee: According to Klein, 1998, independence is also considered

important for a board committee to be an effective monitor.

Board Size: Hermalin and Weisbach (2003) believe that board size proxies for the board’s
activity, explaining why smaller board sizes are better than larger ones that may be plagued with
free rider and monitoring problems.

Board meetings: According to Shivdasani and Zenner, 2004,Boards should be ready to increase
meetings frequency if the situation requires a high supervision and control. Competence of audit
committee members: According to Be´dard et al., 2004Audit committee’s members are in
charge of overseeing internal control and financial reporting, so they should possess a certain level
of financial competency.

Reputation of auditors: The selection of an auditor with a global reputation (a Big 4 auditor) may
convey better disclosure practices (Michaely and Shaw, 1995). Banks dissimilar insurance
companies are much leveraged entities and asset liability mismatches are an inherent and important
feature of their business. Investors might perceive well-governed firms as less risky and apply a
lower expected rate of return, which leads to higher firm valuation. The importance of banks to
national economies is emphasised by the fact that banking is, almost universally, a regulated
industry and that banks have access to government safety nets. It is of crucial importance therefore
that banks must have strong corporate governance practices. Objectives of corporate governance
are to establishing strategic objectives and a set of corporate values that are communicated
throughout the banking organization; Setting and enforcing clear lines of responsibility and
7

accountability throughout the organization. For fulfilling those each country will therefore need
national regulations that prescribe specific rules and procedures for the governance of financial
institutions .Because there are national differences in political economic and legal systems while
adopting international standards and principles.

Banks are “special” as they not only accept and extend large amount of uncollateralized public
funds in fiduciary capacity, but they also leverage such funds through credit creation. The role of
banks is integral to any economy. So CGQ and transparency is highly important than other sector.
But unfortunatelyin a research paper Cho and Kim (2003) said, company would enhance their
corporate governance when the company’s performance is poor because changes in corporate
governance structure are expected to bring out positive result on their performance.

Research Method

This study will be conducted mainly based on the primary data as well as secondary data. The
secondary data of this study will be collected from different secondary sources including annual
reports of the sampled companies, publicly available information from DSE, annual publications
from Bangladesh Bank, secondary websites, books, journals, newspapers etc. The primary data of
this report will be collected based on a survey. The survey will be conducted on the responsible
managers of the sampled banks. The participants will be interviewed based on a structured
questioner (Dsebd.org, 2019). The primary data of the research will be collected from the
questioners, personal interview and field research. These methods of data collection are selected
to increase the reliability and accuracy of the data. The following figure summarized the sources
of primary data of the research:

The personal interview will help to collected details information from the managers of the selected
companies. A set of questions is structured in such a way that it will to collect relevant information
for the study (Dsebd.org, 2018).

As most of the data of this study will be collected from the secondary sources, it is extremely
important for the author to identify appropriate sources of secondary information. While collecting
the secondary data, most reliable sources of information will be selected including the annual
8

reports of the selected companies, famous journals, and previous research papers and so on. The
above chart has summarized the sources of secondary information. This study will be conducted
based on the above research process. The research report will follow above methodology so that
the report is well structured and presented. The research has some specific objectives and the
researcher should follow the above methodology to address the objectives of the research (Tyrie,
2013).The objectives of the research will be presented at the beginning of the report. Then, research
methodology, data collection and analysis, findings and conclusion and recommendations of the
research will be presented. The banking sector of the Bangladesh has been selected to analyse the
corporate governance practices in this sector. The study will try to address the corporate
governance practice environment of the industry and how these practices are influencing the
performance of the banking sector including the profitability, liquidity, solvency and overall
financial performance (Tyrie, 2013). The data used for this study is collected from the primary
sources as well as secondary sources. The annual report of the sampled banks, interview of the
responsible management of the selected banks and annual publication from DSE and BB are the
main sources of data for the report. As the secondary data has great influence on this study, the
reliability and accuracy of the secondary data was highly prioritized (Dept, 2013). The designing
of the sample pays an important role in the overall research process. Going to the purpose of this
study, the listed banks of the Dhaka Stock Exchange and Chittagong Stock Exchange of
Bangladesh have been selected. Because, the listed banks need to publish their corporate
governance report with their annual reports as a result, the listed banks will be more suitable for
collecting relevant data for this study. The research will follow a descriptive approach and the
findings of the research will presented using appropriate graphs and charts generated from MS
Excel. However, the statistical tools have not been used to measure the data because of the
descriptive nature of the research.

Findings

Responsibilities of the Board

The board members who are associated with the bank must be familiar with the responsibilities
and duties they have in the bank for fairly maintain the account notability, transparency and the
9

fairness of the bank. As the board members are not aware of their duties then there create problems
on the management and the bank facing the problems. The board members of the banking sector
in Bangladesh are the following nature as their responsibilities (Shamsuddoha, 2005). The
representation results are showed that the respondent board members are 33.33% disagree and
26.67% are strongly disagreed among the members of the banks for ensuring the accountability,
fairness, and transparency.

Management Review Performance

The management performance of the banks is revised on the regular basis and the performance of
the private commercial banks is more efficient than the national commercial banks. From the
questionnaire study, the performance of the private commercial banks is noticed rarely (Steger and
Amann, 2008). The findings found that the chairman of the boards and the management of the
boards are always separate from each other. The boards evaluate management performance rarely
46.67% and sometimes it will be 33.33% which indicates the inactive presence of the independent
directors of the banks.

Senior Management

The senior management of the bank is responsible for managing the banking performance
according to the rules and guidelines of the boards. The boards are liable for selecting the risk
factors, business strategy, incentive compensation and other policies which is suitable for the bank
(Steger and Amann, 2008).

Nomination of the Directors

The nomination of the candidates in the meeting is important factors for ensuring the systems of
transparency in the governing body of the banking sector. From the financial statement of the
banking sector in Bangladesh specifically on the commercial bank are following the rights of the
members and also the disclosures which are as follows. The survey results from the research
published that the directors of the candidate are nominated from the prior of the annual general
meeting. The corporate governance of the banking sector are on the basis of the transparency and
the failure of the transparency indicate the weak points of the corporate governance in Bangladesh.
10

Similarly, only 50% of the shareholders stated that minority shareholders could nominate their
candidates (Sheikh, 2003).

Participation of the Independent Directors

The participation of the independent directors of any bank in Bangladesh is important for the terms
and condition of the corporate governance in business sector. The independent directors of the
bank can analyze the business concept like the profitability and the ration of the solvency. In the
banking sector, the independent directors are playing a good role in creating an environment like
the transparency, fairness, and accountability. From the research it showed that the most of the
board members are strongly disagree for the independent directors, disagree 33.33% and also
significant proportion is agreed for participating of the independent directors (Sheikh, 2003).
11

External Auditor of the Banking Industry in Bangladesh

The external auditors are the important part of auditing the report of the banking industry. The
financial statement must be audited by the external auditor and the auditor provides the assurance
to the stakeholders of the entire bank. The external auditor is not the responsible for taking any
actions for the illogical work for the discrepancy of the bank. The external auditors are the
watchdog of the banking sector. The role of external auditor of the private bank and the listed
bank in the stock exchange has played a vital role in the performance of that bank. The government
bank in Bangladesh has also some external auditors but they have slight influence because the
corporate governance is very poor in the government sector bank. The external auditors play some
role in the banking sector for maintaining the corporate governance as fairness and accountability
are as follows (Sheikh, 2003).

 Providing the financial advice to the banking sector and providing the reasonable cause for
the discrepancy.
 Providing the audit report and mentioned the problems with the statement or the entire
bank.
 Indicating the financial problems and who is the responsible for the problems.
 Detecting the fraud and the mistake is taking from the auditor’s report.
 The report must be fair, accountable and reasonable.

The auditor is responsible for providing a good report for the bank by which the bank can take
decision for the normal course of business like the return on investment, return on equity and the
liquidity ratio. The foremost concept of the banking sector is that the bank has not enough money
on the reserve for the payment of the customers (Steger and Amann, 2008).

Internal Audit

The internal audit function provides independent assurance to the board and supports board and
senior management in promoting an effective governance process and the long-term soundness of
the bank. The internal audit function should have a clear mandate, be accountable to the board, be
independent of the audited activities and have sufficient standing, skills, resources, and authority
within the bank (Shamsuddoha, 2005).
12

Committees

The investors and the stakeholders are the beneficiaries for accepting the interest from the company
like the banking sector in Bangladesh and this interest and benefits depends on some committees
like the audit committees, compensation and nomination committees of the bank.The data
collected from the sample and questionnaire survey the result finds that the committees of the bank
are not all active. Only the audit committees are actively working around 100% in the bank. The
audit committees ensuring the assurance for the stakeholders and it show the transparency of the
entire institutions like banking sector in our country. So the audit committee of a bank refers to the
assurance of the customers and at the same time it also on behalf of the en5tented party of the
banking sector industry (Makar, 2008).

Ease of Participation in Voting by Shareholders

The voting procedure of any institutions is important for making any committees in the annual
general meetings or any other important meetings of that company. The banking industry follows
the procedure for electing any committee. The bank arranges the voting systems and all the
shareholders have voting rights for the election of the committee. But all the members are not
attending the meetings. Among the shareholders some attend the meeting, some proxy, some are
present and some are male. The following graph shows the result. The graph shows that most of
the shareholders are attend the meeting for giving the vote and there are huge numbers shareholders
who practice the proxy systems. 14% are communicating via mail and 5% are communicating via
cell Phone. The presence is around 55% and the proxy rate is around 26% (School Banking: A
New Idea of Banking Operation in Bangladesh, 2015).

Board Meetings

Board meetings are the important part of taking any significant decision for the banking industry
because the banking industry needs to take some important and crucial decision for the business
purposes. The board meetings time is varying from bank to bank in Bangladesh. In Bangladesh,
the first generation bank like the AB Bank, Janata Bank, Sonali Bank, Islami Bank Bangladesh
Limited etc. bank arrange the board meetings even all the bank needs to arrange the board
meetings. The following graphs show the board meetings are held in quite frequently. From the
survey it is showed that 65% banks arrange the meetings 2-3 times, 14% arrange it 5-6 times, 12%
13

arrange a 7-8 time and only 9% arrange it 8 times in a year (School Banking: A New Idea of
Banking Operation in Bangladesh, 2015).

Requirements of Accountability, Transparency, and Fairness

The main objectives of the corporate governance are the accountability, transparency, and fairness
in the financial statements even if all the sector of the industry. If the banking industry wants to
ensure the both three then the corporate governance must be improved at the level and at the same
time it will be effective and the potential investors will be attracted. So the graph shows that about
58% of the respondent thinks that the requirements of the Transparency and Accountability are
strongly agreed, 32% agree, 8% disagree and 2% strongly disagree (Singh and Singh, 2012).

Right Way to Go in Terms of Corporate Governance for a Bank

The corporate governance successful implementation ensures the good corporate governance in
order to the transparency, accountability, and fairness of the banking sector industry in
Bangladesh. It was the right way to ensure the good corporate governance for the bank. Around
53% of the respondent thinks that good management with strategic plan implementation. On the
other hand, only 2% think that good relation with partner related with the good corporate
governance. The result indicates that it could be the right way to ensure the good governance of
the banking industry (Singh and Singh, 2012)

Conclusion

Corporate governance is the systems and study which are responsible for ensuring the
accountability, transparency, and fairness. Good corporate governance can ensure the rights of the
stakeholders of the banking sector. Recently, some of the banks have been convicted for the scams
they have made.

These scandals have happened because of the poor regulations, lack of guidelines and penalties,
overall poor corporate governance. Farmers bank has performed poorly. They have lent more than
they are permitted; these situations have been going on for years and as a result of poor regulations,
the bank has collapsed. It shows the real situation of the corporate governance in Bangladesh.
14

Not only in the banking sector but also other sectors are performing poor in the phase of corporate
governance. Most of the companies do not have improved structures or do not have the ethical
standards to meet the corporate governance guidelines. Corporate governance is a must for the
sake of the development of the overall economy. It is vital for the growth of the institutions.
Without proper corporate governance, the institutions cannot compete in the global market. Good
Corporate governance practices are the only way to keep the confidence of the stakeholders high.

Banking sector plays a vital role in the development of both micro and macroeconomics of a
country. The above mentioned discussion shows the real situations of Bangladesh banking sector.
It clearly shows that banking sector is in a danger zone. It can collapse anytime. Some of the banks
have already collapsed.

Bangladesh bank should play vital role in the management of all the banks. Permission for the
sanction of new banks should be judged carefully. Political interference should be cut down. Rules
about Loan sanction should be made rigid and clear.

In can be hoped that in near future, Bangladesh will exert real development in the banking sector
and hopefully in other sectors too.

References

Ahmed, S., Zannat, R. and Ahmed, S. (2017). Corporate governance practices in the banking
sector of Bangladesh: do they really matter?. Banks and Bank Systems, 12(1), pp.27-35.

Arun, T. and Turner, J. (2009). Corporate governance and development. Cheltenham: E. Elgar.

Bank, A. (2016). Gearing Up for Competitiveness. Manila: Asian Development Bank.

Belloc, H. (1967). On. Freeport, N.Y.: Books for Libraries Press.

Belloc, H. (1967). On. Freeport, N.Y.: Books for Libraries Press.

Bhattacharya, A. and Griffith-Jones, S. (2001). Developing countries and the global financial
system. London: Commonwealth Secretariat.
15

Corporate Governance Update. (2002). Corporate Governance, 10(1), pp.61-66.

Dept, I. (2013). Bangladesh. Washington: International Monetary Fund.

Dsebd.org. (2018). Dhaka Stock Exchange. [online] Available at: http://www.dsebd.org/

[Accessed 19 Feb. 2018].

Gilbert, C. and Vines, D. (2004). The IMF and its critics. Cambridge: Cambridge University
Press.

Islam, M. and Rana, R. (2017). Determinants of bank profitability for the selected private
commercial banks in Bangladesh: a panel data analysis. Banks and Bank Systems, 12(3-1),
pp.179-192.

Joshi, M., Dellaportas, S. and Boritz, E. (2017). Accounting, Auditing & Governance in the
SAARC group of nations. Bradford, West Yorkshire: Emerald Publishing Limited.

Makar, E. (2008). An American's guide to doing business in India. Avon, Mass.: Adams
Business.

Okpara, J. and Idowu, S. (2013). Corporate Social Responsibility. Berlin, Heidelberg: Springer.

Rahman, R. (1991). Poor women's access to economic gain from Grameen bank loans. Canberra.

Robertson, A., Jones-Parry, R., Silvester, K., Bistrova, K. and Fell, J. (2014). Commonwealth
governance and growth. Cambridge: Published for the Commonwealth Secretariat by Nexus
Strategic Partnerships.

Shamsuddoha, M. (2005). Propensity and Growth Pattern of Bank Credit in Bangladesh. SSRN
Electronic Journal.

Sheikh, S. (2003). Corporate Governance & Corporate Control. London, England: Taylor &
Francis.

Steger, U. and Amann, W. (2008). Corporate governance. Chichester, England: John Wiley &
Sons.

Tyrie, A. (2013). Banking reform. London: Stationery Office.

16

Belloc, H. (1967). On. Freeport, N.Y.: Books for Libraries Press.

Committee, C. (2000). Code of Best Practice for Corporate Governance. SSRN Electronic
Journal.

Hess, D. (2005). Social Reporting and New Governance Regulation: The Prospects of Achieving
Corporate Accountability through Transparency. SSRN Electronic Journal.

Mallin, C. (2002). The Relationship between Corporate Governance, Transparency and Financial
Disclosure. Corporate Governance, 10(4), pp.253-255.

Monden, Y. (1992). Cost management in the new manufacturing age. Cambridge, Mass.:
Productivity Press.

Oliver, L. (2000). The cost management toolbox. New York: AMACOM.

Riasi, A. (2015). Competitive Advantages of Shadow Banking Industry: An Analysis Using

Porter Diamond Model. Business Management and Strategy, 6(2), p.15.

School Banking: A New Idea of Banking Operation in Bangladesh. (2015). International Journal
of Science and Research (IJSR), 4(11), pp.1926-1931.

Singh, A. and Singh, D. (2012). The Study of Alignment of Business and Information
Technology Strategy in Indian Banking Sector. Paripex - Indian Journal Of Research, 2(1),
pp.84-88.

Appendices

Questionnaire on Corporate governance practices

Name of the respondent: ………………………….

Name of the Bank: ………………………………...

Position: 1) Directors 2) Manager 3) Executive 4) Others

17

 Do you think members of the board understand their responsibilities in terms of

accountability, transparency, and fairness?
1) Agree 2) Strongly Agree 3) Disagree 4) Strongly Disagree
 Is there any committee of audit on the bank?
1) Yes 2) No 3) Don’t know
 Is there any compensation committee in the bank?
1) Yes 2) No 3) Don’t know
 What is the way of participation in the voting procedures?
1) Mail 2) Phone 3) Presence 4) Proxy
 How frequently the managements’ performance is evaluated by the Board’s member?
1) Never 2) Often 3) Frequently 4) Sometimes
 How often Independent Directors Participate in the Meeting?
1) Sometimes 2) Routinely 3) Rarely 4) Never
 What is the Right Way to go in terms of Corporate Governance for a Bank?
1) Good relation with partner 2) Good deliberation for stuff 3) Fair view report and
disclosure 4) Good management with strategic plan and implementation 5) None
 Do you think Accountability, Transparency, and Fairness are required for improving
bank performance?
1) Agree 2) Disagree 3) Strongly Agree 4) Strongly Disagree
 Are independent directors participating actively in board discussion?
1) Often 2) Sometimes 3) Rarely 4) Never
 Does your bank approve the appointment of the internal auditor and supervise his work
routinely?
1) Occasionally 2) Actively 3) Never
 Is the performance of the bank's management reviewed on regular basis?
1) No 2) Yes 3) Don’t know
 Does the board formally evaluate the CEO’s performance?
1) As routinely 2) Rarely 3) Never 4) Sometimes
 Number of board meeting in a year
18

1) 2-3 times 2) 5-6 times 3) 7-8 times 4) 8 times

List of the Surveyed Bank

SL/No. Name Of the Bank

01 AB Bank Ltd.
02 City Bank Ltd.
03 Prime Bank Ltd.
04 Sonali Bank Ltd.
05 Rupali Bank Ltd.
06 Shahjalal Islami Bank Ltd.
07 National Bank Ltd.
08 Eastern Bank Ltd.
09 Mutual Trust Bank Ltd.
10 Dhaka Bank Ltd.
11 Bank Asia
12 Basic bank
13 Pubali Bank
14 NCC Bank
15 United Commercial Bank