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Capitalism, Creative Destruction and Entrepreneurship

Both Adam Smith and Joseph Schumpeter was ardent supporter of capitalism; they believed in capitalism’s capability in redefining the rules of the game. Adam Smith synchronized capitalism with animal spirit; whereas Joseph Schumpeter relied on the role of entrepreneurs to conceptualize capitalism. So, Adam Smith’s interpretation of capitalism did not have a face; it was way too inherent and way too abstract. Unlike Smith, Schumpeter was skeptical about the fate of capitalism.  While Joseph Schumpeter agrees with Marxism-led philosophy [...]

July 18, 2017 By Articles 0 Comments Read more...

Agent Banking: Prospect & Challenges

Agent banking should play an instrumental role in including the unbanked under the formal banking umbrella of Bangladesh. MFS (mobile financial services) are mostly payment services, but agent banking is basically a limited-purpose banking solution. Access to payment service is often termed as an elementary-level human right; MNOs (Mobile Network Operators) have the competitive edge (technological set-ups like USSD and vast reach) to run payment-services successfully. So, payment service needs to be an MNO-territory. Even though, under the existing [...]

July 13, 2017 By BMBA 0 Comments Read more...

BMBA delegation off to India

A seven-member delegation of Bangladesh Merchant Bankers Association (BMBA) left Dhaka Sunday for India as part of the securities’ regulator’s ‘financial literacy’ program. The Bangladesh Securities & Exchange Commission (BSEC) organized the program as part of the ‘study tour’. The team will stay India from July 3 to July 7, 2017, said a BMBA statement on Sunday. The delegation is led by BMBA president Md. Sayadur Rahman. The other members in the delegation are Vice-president M. Mosharraf Hossain, Secretary General Khairul [...]

July 3, 2017 By Articles, BMBA, News 0 Comments Read more...

What to regulate and how much – Bangladesh based regulator’s experience

Bangladesh Bank, Insurance Development and Regulatory Authority (IDRA), Bangladesh Security Exchange Commission (BSEC), Microcredit Regulatory Authority (MRA) are the regulatory authorities designed to regulate the overall financial system, insurance industry, capital market and micro-finance institutions respectively. These organizations were formed according to the statute and the workforce is capable but one may and should question their regulation endeavors. Being the central bank and the guardian of Bangladeshi economy, Bangladesh Bank needs to prioritize and take intervention initiatives since at times [...]

June 24, 2017 By BMBA 0 Comments Read more...

A beginner’s guide to agency problem

An agent is expected to protect the interest of the principal and an agent is paid for the services. But under the standard agency set-up it has been witnessed that most often agent do not protect the interest of the principal and they try to maximize their own interest. An agency problem is referred as the conflict of interest between the agents and principals. Agency problem with respect to a publicly listed company can be multi-layered; agency problem can incur [...]

June 19, 2017 By BMBA 0 Comments Read more...