Monthly Archives - August 2017

Costs of Financial Disclosure

Financial disclosures definitely reduce information asymmetry that exists between managers and stockholders. Financial statements (balance sheet, owner’s equity statement, income statement and cash flow statements and notes & explanations) are required by different groups of stakeholders. This stakeholder group encompasses managers, shareholders, employees, lenders and other suppliers, customers and government/regulators. These diverse groups of stakeholders need financial statement for completely different reasons and not always their interest merge. There remains some agency problem linked up with disclosing contents in [...]

August 28, 2017 By BMBA 0 Comments Read more...

Philosophies behind CSR (Corporate Social Responsibilities)

There are four schools of thoughts that will help the reader understand why firms often get engaged into CSR activities. As per the instrumental theory of corporate social responsibility, CSR is only perceived as the instrument to achieve business’s monetary objective. So, CSR initiatives are taken only for fulfilling the long-term benefit of the business; any CSR activity that does not help the firm in achieving its long-term goal is readily dropped from the equation. CSR activities are often [...]

August 21, 2017 By Articles, BMBA 0 Comments Read more...

Developing an ‘Enabling regulatory framework’ for Bangladesh based MFS industry

An ‘enabling regulatory framework’ ensures the co-existence of MNOs (Mobile Network Operators) and FIs (Financial Institutions) in the MFS (Mobile Financial Service) value chain. Currently the MFS industry in Bangladesh is bank-driven or bank-led. bKash(a subsidiary of Brac Bank) dominates the MFS competitive space accounting for more than half of the market (58%) followed by DBBL with about one-sixth of subscribers (17%). The remaining eight providers with live services currently account for around a quarter of the total market [...]

August 11, 2017 By Articles, BMBA 0 Comments Read more...

Evolution of E-payment industry: Bangladesh Experience

Major MFS (Mobile financial Service) transactions encompass – Cash in transaction, Cash out transaction, P2P Transaction, Salary disbursement (B2P), Utility Bill Payment (P2B), Inward remittance and Others. MFS providers earn most of their revenue by performing three transactions – Cash in, Cash out and P2P. In 2014, these three Mobile financial services churned 98% of the industry e-payments; whereas in 2017 the contribution was around 96%. Cash-in transaction is the biggest mode of e-payment transactions, followed by cash-out transaction. P2P [...]

August 11, 2017 By BMBA 0 Comments Read more...

Risk in DFS (Digital Financial Service) framework

Low-income masses, micro-entrepreneurs and rural populations were previously left out of the financial market due to the high costs of physical expansion are now accessing financial services (payment, deposit mobilization) through mobile phones and networks of agents acting as representatives of financial service providers. This has resulted in a remarkably rapid increase in financial inclusion in countries. It is expected that the expansion of digital financial services will make an important contribution towards the goal of reaching universal financial [...]

August 4, 2017 By BMBA 0 Comments Read more...