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4. In terms of maintaining leverage ratio, it has been observed from the FSR (2013)
that, excluding specialised banks, the banking industry is at comfort zone with 4.57
per cent leverage for state-owned commercial banks followed by 7.75 per cent for
private commercial banks (excluding Islamic), 7.89 per cent Islamic banks and
27.70 per cent for foreign banks as against minimum requirement of 3.0 per cent
under the new directive.
5. As systematically important banks might require capital in addition to minimum
requirement (upon regulatory approval), these institutions might be under
regulatory focus and will act as the driving force in the financial system.
Despite many challenges, it is quite evident that the Basel-III framework will
definitely make the banks more risk-resilient and shock-absorbent than ever before.
However, mere reporting and compliance are very insignificant part of the whole
thing. Real benefit can only be achieved if the inherent philosophy is well
understood and implemented by the practitioners.
The views expressed in the article are the author's own and not necessarily of the
organisation he represents. The author, a member of ACCA, is an Assistant Vice
President of Islami
Bank Bangladesh Ltd.
kmraihan@islamibankbd.com