to TARI-o8 THE INSTITUTE OF BANKERS, BANGLADESH (IBB) 97th Banking Professional Examination, 2023 JAIBB ; Governance in Financial Institutions (GFT) Subject Code Time—3 hours Full: marks—100 Pass marks—45 [N.B. Answer any five. out of the following ten questions. Each question carriers 20 marks. Figures in the right side indicate the full marks of that question. ] Marks 1. (@) What do you mean by corporate governance? 4 (6) “Regulatory compliance is effective against fraud; abuse/and 6 penalties”—Please explain the statement: (c) Name the distinct sides of a corporate governance framework. .3+7=10 Write down the main functions of these sides. 2. (a) State the responsibilities and authorities ‘of’ the board ‘of 7 directors regarding human resources management of a bank, (6) The chairman of a bank shall not engage himself in the day to 6 day business of the bank—Explain. lcs (c) When and how the board of a bank can’t be dissolved-and an 7 observer is appointed? cat 3, (@) Describe the rules and regulations for appointing, the chief.’ 10 ’ executive of a bank company as per the Bangladesh. Bank directives. (4) Describe the relationship between the organizational:,culture 10 and the business strategy. fw 4. (@) What is the basic difference between ‘Going-Concém’ and 344=7 *Gone-Concern’ Capital? -List the components of ‘Going- - Concem’ capital. (4) What do you mean by liquidity, profilé? Write down the 245=7 indicators of liquidity risk. Mention the’ sourées of funds that can be used by a bank to 6 meet up the unexpected demand for funds. « [Please turn overMarks 5. (a) What do you mean by Enterprise Risk Management (ERM)? 2+4=6 What are the challenges of ERM? (6) What is meant by risk appetite? What are the steps for 3+5=8 developing the risk appetite statement? (c) What are the benefits of three lines defense model? 6 6. (a) What are the main purposes behind the formation of different 8 subsidiaries by the financial institutions? (6) What is the future of Mobile Financial Service (MFS) in 7 Bangladesh? (c) State the maximum limit of investment in capital market by a bank. 5 7. (a) What are the basic rules for customer complaints received by the financial institutions? (6) What are the principles of Bank of International Settlement on disclosure? (©) Describe the role of CSR in community development. 8. (a) What is meant by succession planning? What are the advantages 2+6=8 of succession planning? (6) What do you mean by a future-looking organization? State the 2+7=9 important features of a future looking company. (c) Name the steps of a new business initiative, 3 9. Write short notes on any five of the following concepts: 4x5=20 (a) Independent Director (6) Organizational Culture (©) Capital Adequacy (@) Risk Weighted Asset (e) Islamic Window () Employee Upskilling (g) Code of Conduct (A) Off-shore Banking Unit (OBU) 10. Answer the following questions; each question carries 2 marks. 2x10=20 Answer is preferable in one sentence. () What is the legal indication of a private limited company in Bangladesh? (i) Write the full form of CAR and CRAR. (iii) Under which section of the Bank Companies Act, 1991 Bangladesh Bank is empowered to dissolve the board of a bank company? (iv) What is current Minimum Capital Requirement (MCR) for a bank company operating in Bangladesh? (Y) Who is responsible for taking care of the activities of the internal audit of a bank? x aoa3 (vi) Which organization(s) is/are the licensing authority of the Merchant Bank, Brokerage House and Exchange House? (vii) Under which pillar banks/financial institutions publish their market disclosure? (viii) What is alternative name of Tier 2 capital? () What is the minimum years of professional experience in the field of management/business for being the CEO of a bank company? (®) Can Bangladesh Bank remove directors of the government owned commercial banks? 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