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Risk Reporting of the Banking Sector of Bangladesh: A Time Horizon Analysis

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  • Niluthpaul Sarker
  • Shamsun Nahar

Abstract

The study focused on the practical scenarios of bank risk disclosures where it is assumed that adequate risk disclosures expand the path of transparency in the marketplace. The reason is that the financial disclosures, including risk items, represent their image of the current and potential investors, and can impact their mentality about investment. The research analyzed the credit risk, market risk and operational risk reporting intensities in their reports. It is noted that the maximum Risk Weighted Assets (RWA) are held for credit risk of the banking system whereas the remaining part of the system utilized by the market risk and operational risk. It is found that the risk for the top five (5) or the top ten (10) banks is extremely high. The concentration symptom of risk is not good as the fewer borrowers occupied the most of the credit.

Suggested Citation

  • Niluthpaul Sarker & Shamsun Nahar, 2018. "Risk Reporting of the Banking Sector of Bangladesh: A Time Horizon Analysis," Asian Journal of Finance & Accounting, Macrothink Institute, vol. 10(1), pages 178209-1782, December.
    • Handle: RePEc:mth:ajfa88:v:10:y:2018:i:1:p:178209
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    References listed on IDEAS

    as
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    4. Abraham, Santhosh & Cox, Paul, 2007. "Analysing the determinants of narrative risk information in UK FTSE 100 annual reports," The British Accounting Review, Elsevier, vol. 39(3), pages 227-248.
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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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