Risk Management Frameworks in Banks: Bangladesh Perspective

FRAMEWORK OF CAPITAL MANAGEMENT

¢Capital Management Policies

—The role and responsibilities of the Board, management, and the RMU/CMU.

—Basic policies for maintaining sufficient capital and on the capital allocation process;

—Risk limits in relation to the capital;

—Calculation of the capital adequacy ratio in line with capital adequacy guidelines issued by Bangladesh Bank; and

—Methods of internal capital adequacy assessment in conducting capital allocation process;

—Appropriate level of capital target for the short-term, medium-term and long-term.

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