Question -1: Describe the role of financial market in the economy of Bangladesh?

Answer: The financial system is a set of institutional arrangement through which surplus

units transfers their fund to deficit units. Financial market facilitates the flow of funds in

order to finance investments by governments, corporation, and individuals. Financial

market attract funds from investors and channel them to corporations they allow

corporations to finance their operations and achieve growth. Money market allow firms

to borrow funds on a short term basis , while capital market allow corporations to gain

long term funding to support expansion.

One of the important requisite for the accelerated development of an economy is the

existence of analysis. A financial market helps the economy in the following matters:

• Saving Mobilization: Obtaining funds the savers or surplus units such as

household individuals, business firms, public, sector units, central government etc is an

important role played by financial market.

• Investment: Financial markets play a crucial role in arranging to invest funds thus

collected in these units which are in need of the same.

• National Growth: An important role played by financial market is that, they

contribute to a nation’s growth by ensuring enfettered flow of surplus funds to deficit

units. Flow of funds for the productive purposes is also made possible.

• Entrepreneurship Growth: Financial market contributes to the development of the

entrepreneurship flow by making available the necessary financial resources.

• Industrial Development: The different components of financial market help an

accelerated growth of industrial and economic development of a country.

Bank-based finance has a special role to play for many companies in need of funds, and

thus helps to ensure a well-balanced growth process. The economic literature on

"relationship banking" has demonstrated that banks can contribute to alleviating the

impact of sudden economic shocks on their clients. Banks stand ready to provide many

customers with funds even in adverse circumstances, e.g. when the liquidity of financial

markets dries up.

Question-2: What are the challenges of Capital Market in Bangladesh?

Answer: Capital market deals in financial instruments and commodities that are long-

term securities. They have a maturity of at least more than one year. Capital markets

perform the same functions as the money market. Capital market is a mechanism to flow

fund from the hands of small savers (individuals and institutions) at low costs to those

entrepreneurs who do need fund to start business or to business. . It has two full-fledged

automated stock exchanges namely Dhaka Stock Exchange (DSE) and Chittagong Stock

Exchange (CSE) and an over-the counter exchange operated by SEC. It also consists of a

dedicated regulator, the Securities and Exchange Commission (SEC), since, it

implements rules and regulations, monitors their implications to operate and develop the

capital market. These are some challenges ahead of the Capital market are given below:

• Information Asymmetry: Access to credible information is restricted- retail

investors lack deducted investment process infrastructure forced to look to broker for

advice that may consist of market rumors.

• Supply slide Constraints: Lack of fundamentally sound as companies prefer

traditional bank finance to capital markets need to encourage listing of good. Series in the

market reducing supply side constraints generates liquidity, reducing scope for price

manipulation.

• Lack of professional portfolio management: Ratio of institutional retail investors remains

low. Institutional investors bring stability through non-speculative long term investments.

• Valuation Disparity: Education of investors overall, development of capital markets

through time can address this issue.

• Lack of Formal Debt market: Bangladesh does not have established secondary debt

market.

• Quality Research and Analysis: Development of quality equity research in the country is

yet to match the growth of local capital markets.

describe some important considerations before investing in mortgage securities.

MBS is a complicated instrument and comes in many different forms. It would be difficult to

assess the general risk of an MBS, much like it would be difficult to assess the risk of a generic

bond or stock. The nature of the underlying asset and the investment contract are large

determinants of risk.

Improved Liquidity and Risk Argument:

Mortgage-backed securities also reduce risk to the bank. Whenever a bank makes a mortgage

loan, it assumes risk of non-payment (default). If it sells the loan, it can transfer risk to the buyer,

which is normally an investment bank. The investment bank understands that some mortgages

are going to default, so it packages like mortgages into pools. This is similar to how mutual

funds operate. In exchange for this risk, investors receive interest payments on the mortgage

debt.

Free to Contract Argument and less prone to recession:

Economic research in 2009 suggested that, the level of consumer spending in the market is

smoother and less prone to recession. This allows banking institutions to supply credit even

during downturns, smoothing out the business cycle and helping normalize interest rates among

different populations and risk profiles. Theoretically,

The MBS allows investors to seek a return, lets banks reduce risk and gives borrowers the

chance to buy homes through free contracts.

Federal Reserve Involvement:

While the MBS market draws a number of negative connotations, the market is more "safe"
from

an individual investment stand point than it was pre 2008. After the collapse of the housing

market, banks, on the back of strict regulation, increased the underwriting standards that have

made them more robust and transparent.

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So Before investing in a mortgage security, a number of factors should be considered with the
help of an investment advisor. Important factors to consider include:

• The existence of a guarantee or other credit enhancement, and the credit quality of the

guarantor, if applicable.

• The type of security and type of underlying collateral, which can be found in offering

documents such as a prospectus or offering circular;

• The quality of the security and its underlying collateral;

• The level of activity in the secondary market should you need to sell the security before its final

principal payment;

• The estimated average life and final maturity, which should match one’s investment time

frame, also taking into account of a faster or slower prepayment rate;

• The yield compared to other comparable types of investment such as Treasury, corporate and

municipal bonds (adjusted for tax considerations); and

• The impact of changes in interest rates to the estimated yield and average life of the security,

particularly in the case of specific CMO tranches. This list is not exhaustive, but instead provides

examples of the kinds of questions that should be answered. Considerations of suitability,

aligned with your investment objectives, should always be taken into account before making an

investment. Contact your financial advisor to discuss possible investments.

26

Question 2. How mortgage is different from other bonds like treasury or corporate bonds?

Describe in the shade of interest rate and yield on mortgage.

Yield

Mortgage securities are often priced at a higher yield than Treasury and corporate bonds of

comparable maturity, but often lower than the interest rates paid on the underlying mortgage

loans. This is because a portion of the interest paid by the mortgage borrower is retained by the

loan servicer as a servicing fee for collecting payments from borrowers and distributing the

monthly payments to investors. Interest rates on mortgage securities are higher than Treasury and

corporate bonds to reflect the compensation for the uncertainty of their average lives as well as

their higher credit risk.

the interest rate and the length of time the investor’s principal remains outstanding. Mortgage

security yields are often quoted in relation to yields on Treasury securities with maturities closest

to the mortgage security’s estimated average life. The estimated yield on a mortgage security

reflects its estimated average life based on the assumed prepayment rates for the underlying

mortgage loans. If actual prepayment rates are faster or slower than anticipated, the investor

holding the mortgage security until maturity may realize a different yield. For securities

purchased at a discount to face value, faster prepayment rates will increase the yield-to-maturity,

while slower prepayment rates will reduce it. For securities purchased at a premium, faster

prepayment rates will reduce the yield-to-maturity, while slower rates will increase it. For

securities purchased at par, these effects should be lessened.

Because mortgage securities pay monthly or quarterly, as opposed to on a semi-annual schedule,

mortgage security investors can use their interest income much earlier than other bond investors.

Therefore, mortgage securities are often discussed in terms of their bond equivalent yield, which

is the actual mortgage security yield adjusted to account for its greater present value resulting

from more frequent interest payments.

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Interest Rates

Prevailing market interest rates affect mortgage securities in two major ways. First, as with any

bond, when interest rates rise, the market price or value of most types of outstanding mortgage

security tranches drops in proportion to the time remaining to the estimated maturity.

Conversely, when rates fall, prices of most outstanding mortgage securities generally rise,

creating the opportunity for capital appreciation if the security is sold prior to the time when the

principal is fully repaid.

However, movements in market interest rates may have a greater effect on mortgage securities

than on other fixed-interest obligations because interest rate movements also affect the

underlying mortgage loan prepayment rates and, consequently, the mortgage security’s average
life and yield. When interest rates decline, homeowners are more likely to refinance their

mortgages or purchase new homes to take advantage of the lower cost of financing. Prepayment

speeds therefore accelerate in a declining interest rate environment. When rates rise, new loans

are less attractive and prepayment speeds slow.

If interest rates fall and prepayment speeds accelerate, mortgage security investors may find they

get their principal back sooner than expected and have to reinvest it at lower interest rates (call

risk). If interest rates rise and prepayment speeds are slower, investors may find their principal

committed for a longer period of time, causing them to miss the opportunity to earn a higher rate

of interest (extension risk). Therefore, investors should carefully consider the effect that sharp

moves in interest rates may have on the performance of their mortgage security investment.
Question/Answer

Question: Are Financial Crises Becoming More Frequent?

Answer:

❖Recent developed markets crises

1. US housing and sub-prime crisis in 2006-2008

2. Global Financial Crisis (GFC) of 2008-2009

3. Sovereign debt crises and economic crisis in the Eurozone (2010-

2013): Greece, Ireland, Portugal, Spain, Italy, Cyprus, Slovenia. Grexit

Risk.

❖Recent emerging market crises:

o Mexico (1994), East Asia (1997-98), Russia (1998), Brazil (1999), Turkey

and Argentina (2001)

o EM mini-crisis in 2013-15 and China’s 2015 turmoi

Answer: The 2007-2008, credit crisis was a meltdown for the history books. The

nationwide triggering event was a nationwide bubble in the housing market. Home

prices had been rising rapidly for years. Speculators Jumped in to buy before they

got priced out. Some believed prices would never stop rising. Then in 2006, prices

hit their peak and started to decline.

Well before then, mortgage brokers and leaders has relaxed their standards to take

advantage of the boom. “Teaser" rates virtually guaranteed that they would default

in a year or two.

This was not self-destructive behavior on the part of the lenders. They did not hold

onto this subprime loans, but instead sold them for repackaging as mortgage

backed securities and collateral debt obligations that were traded in the market by

investors and institutions. When the bubble burst the last buyers were stuck. These

last buyers were among the biggest financial institutions in the country. As the

loses climbed investors began to worry that those firms had downplayed the extend

of their loses. The stock price of the firm themselves began to fall. inter lending

between firms stopped.

The credit crunch combined with the mortgage meltdown to create a crisis that

froze the financial system when its need for liquid capital was at its highest. The

situation was made by a purely human factors. Fears turned to panic, risking stocks

suffered big losses, even if they had nothing to do with the mortgage market.

The situation was so dire that the federal reserve was fund to pump billions into the

system to save it and even then, we still ended up in the great recession.

Question 2. Liquidity crisis reasons and ways to overcome (Bangladeshi

perspective)

Answer: After having excess liquidity for quite long time, banks have been facing

increasingly more demand for loans from the private sector since December last
year. In this situation, a few bank exceeded the allowable loan-deposit ratio of 85

17

percent. As it is a violation of one of the macro-prudential policies, the Bangladesh

bank took action against these banks to reduce the LDR to 83.5 percent by

December 2018.

It will compel banks to retain and collect a higher amount of deposit to maintain

their current level of loans and advances. Apparently it will augment the current

liquidity crisis of banks.as a result some banks and financial institutions are now

trying to collect more funds by applying traditional strategy increasing the rate of

the interest.

Additionally, non-performing loans, increasing black money, trapping money in

the share market and siphoning money outside of the country might be the possible

cause behind current liquidity crisis.

In this situation strategies like giving a strong drive to collect idle money savers

and bring earnings of the non-resident Bangladeshi with financial and non-

financial benefits and stopping loopholes of siphoning money can improve the

scenario.

A good chunk of money owned by government workers is not usually coming to

the banking sector. Although it is tiny at the individual level, it may be huge

altogether. Banks can form a tailored one-time or recurring deposit product by

offering financial and non-financial benefits to this section of the society.

Increase of financial benefits banks may consider a rational amount of interest,

extend secured overdraft facility and give flexible time in depositing money. It is

believed that collective and prudent initiatives will help banks and financial

institutions unutilized money into the financial sector, supplying much needed

lubricants to our economy.

Q-1. What was the propagation mechanism? Or, why did the crisis spread

throughout the entire world economy?

The crisis first flared up in the summer of 2007 when interest rate spreads in the

interbank lending markets rose dramatically. The crisis was prolonged, or

propagated well beyond this time, because of a misdiagnosis by policy makers who

then took actions which were either ineffective or made things worse. As

evidenced by the initial response and public commentary, the problem was

diagnosed as a general lack of liquidity rather than credit risk on the banks’

balance sheets. Rather than address the problems in the banking system caused by

the defaults and the increased uncertainty about creditworthiness of the toxic

assets, government officials took other actions—including the creation of new

borrowing facilities for financial institutions, an extra sharp cut in interest rates

(which depreciated the dollar and increased oil prices) and a plan to send checks to

people to jump start consumption and the economy. But these actions did not have

a noticeable impact. Credit spreads in the interbank market remained high.

Following the rescue of the creditors of Bear Stearns in 2008, no plan was laid out

for how the government would deal with the credit problems of other financial

institutions. Hence the crisis continued and eventually turned into the Panic in

September and October of 2008.Regarding the impact on the world economy, there

are three main factors. First, there were monetary policy excesses in some other

countries, perhaps related to the monetary policy decisions in the United States.

This led to housing booms and busts in a number of other countries. Second, the

credit problems due to the toxic assets emanating from the housing bust in the

United States were on banks’ balance sheets in Europe as well as the United States.

Third, during the Panic in September and October 2008 fears of another great

depression set off by the policy statements in the Unites States in late September

affected investment, exports, and imports around the world. The sudden shift in
expectations could be seen in nearly all markets simultaneously.

21 | Page

Q-2. What happened during financial crisis?

This question, though the most basic and fundamental of all, seems very difficult

for most people to answer.    They can point to the effects of the crisis, namely the

failures of some large firms and the rescues of others.  People can point to the

amounts of money invested by the government in keeping some firms

running.  But they can’t explain what actually happened, what caused these firms

to get into trouble.  Where and how were losses actually realized?  What actually

happened?   The remainder of this short note will address these questions.  I start

with an overview. There was a banking panic, starting August 9, 2007.  In a

banking panic, depositors rush end masse to their banks and demand their money

back. The banking system cannot possibly honor these demands because they have

lent the money out or they are holding long‐term bonds.  To honor the demands of

depositors, banks must sell assets.  But only the Federal Reserve is large enough to

be a significant buyer of assets. Banking means creating short‐term trading or

transaction securities backed by longer term assets.  Checking accounts (demand

deposits) are the leading example of such securities.    The fundamental business of

banking creates a vulnerability to panic because the banks’ trading securities are

short term and need not be renewed; depositors can withdraw their money. But

panic can be prevented with intelligent policies. What happened in August 2007

involved a different form of bank liability, one unfamiliar to regulators. Regulators

and academics were not aware of the size or vulnerability of the new bank

liabilities.in fact, the bank liabilities that we will focus on are actually very old, but

have not been quantitatively important historically.  The liabilities of interest are

sale and repurchase agreements, called the “repo” market.   Before the crisis

trillions of dollars were traded in the repo market. The market was a very liquid

market like another very liquid market, the one where goods are exchanged for
checks (demand

Deposits). Repo and checks are both forms of money. (This is not a controversial

statement.) There have always been difficulties creating private money (like

demand deposits) and this time around was no different.   

The panic in 2007 was not observed by anyone other than those trading or

otherwise involved in the capital markets because the repo market does not involve

regular people, but firms and institutional investors.  So, the panic in 2007 was not

22 | Page

like the previous panics in American history (like the Panic of 1907, shown below,

or that of 1837, 1857, 1873 and so on) in that it was not a mass run on banks by

individual depositors, but instead was a run by firms and institutional investors on

financial firms.  The fact that the run was not observed by regulators, politicians,

the media, or ordinary Americans has made the events particularly hard to

understand.    It has opened the door to spurious, superficial, and politically

expedient “explanations” and demagoguery

Ans. The global financial crisis (GFC) refers to the period of extreme stress in global financial

markets and banking systems between mid 2007 and early 2009. During the GFC, a downturn in

the US housing market was a catalyst for a financial crisis that spread from the United States to

the rest of the world through linkages in the global financial system. Many banks around the

world incurred large losses and relied on government support to avoid bankruptcy. Millions of

people lost their jobs as the major advanced economies experienced their deepest recessions

since the Great Depression in the 1930s. Recovery from the crisis was also much slower than

past recessions that were not associated with a financial crisis.

Main Causes of the GFC

As for all financial crises, a range of factors explain the GFC and its severity, and people are still

debating the relative importance of each factor. Some of the key aspects include:

1. Excessive risk-taking in a favorable macroeconomic environment

In the years leading up to the GFC, economic conditions in the United States and other countries

were favorable. Economic growth was strong and stable, and rates of inflation, unemployment

and interest were relatively low. In this environment, house prices grew strongly.

Expectations that house prices would continue to rise led households, in the United States

especially, to borrow imprudently to purchase and build houses. A similar expectation on house

prices also led property developers and households in European countries (such as Iceland,

Ireland, Spain and some countries in Eastern Europe) to borrow excessively. Many of the

mortgage loans, especially in the United States, were for amounts close to (or even above) the

purchase price of a house. A large share of such risky borrowing was done by investors seeking

to make short-term profits by ‘flipping’ houses and by ‘subprime’ borrowers (who have higher

default risks, mainly because their income and wealth are relatively low and/or they have missed

loan repayments in the past).

Banks and other lenders were willing to make increasingly large volumes of risky loans for a

range of reasons:

 Competition increased between individual lenders to extend ever-larger amounts of

housing loans that, because of the good economic environment, seemed to be very profitable at
the time.

 Many lenders providing housing loans did not closely assess borrowers’ abilities to make

loan repayments. This also reflected the widespread presumption that favorable conditions would

continue. Additionally, lenders had little incentive to take care in their lending decisions because

they did not expect to bear any losses. Instead, they sold large amounts of loans to investors,

usually in the form of loan packages called ‘mortgage-backed securities’ (MBS), which

consisted of thousands of individual mortgage loans of varying quality. Over time, MBS

products became increasingly complex and opaque, but continued to be rated by external

agencies as if they were very safe.

 Investors who purchased MBS products mistakenly thought that they were buying a very

low risk asset: even if some mortgage loans in the package were not repaid, it was assumed that

most loans would continue to be repaid. These investors included large US banks, as well as

foreign banks from Europe and other economies that sought higher returns than could be

achieved in their local markets.

2. Increased borrowing by banks and investors

In the lead up to the GFC, banks and other investors in the United States and abroad borrowed

increasing amounts to expand their lending and purchase MBS products. Borrowing money to

purchase an asset magnifies potential profits but also magnifies potential losses.  As a result,

when house prices began to fall, banks and investors incurred large losses because they had

borrowed so much.

Additionally, banks and some investors increasingly borrowed money for very short periods,

including overnight, to purchase assets that could not be sold quickly. Consequently, they

became increasingly reliant on lenders – which included other banks – extending new loans as

existing short-term loans were repaid.

3. Regulation and policy errors

Regulation of subprime lending and MBS products was too lax. In particular, there was

insufficient regulation of the institutions that created and sold the complex and opaque MBS to

investors. Not only were many individual borrowers provided with loans so large that they were
unlikely to be able to repay them, but fraud was increasingly common – such as overstating a

borrower's income and over-promising investors on the safety of the MBS products they were

being sold.

In addition, as the crisis unfolded, many central banks and governments did not fully recognize

the extent to which bad loans had been extended during the boom and the many ways in which

mortgage losses were spreading through the financial system.

Q. What are the policy that responded to the Global Financial Crisis ?

Ans. Until September 2008, the main policy response to the crisis came from central banks that

lowered interest rates to stimulate economic activity, which began to slow in late 2007.

However, the policy response ramped up following the collapse of Lehman Brothers and the

downturn in global growth.

1.Lower interest rates

Central banks lowered interest rates rapidly to very low levels (often near zero); lent large

amounts of money to banks and other institutions with good assets that could not borrow in

financial markets; and purchased a substantial amount of financial securities to support

dysfunctional markets and to stimulate economic activity once policy interest rates were near

zero.

2.Increased government spending

Governments increased their spending to stimulate demand and support employment throughout

the economy; guaranteed deposits and bank bonds to shore up confidence in financial firms; and

purchased ownership stakes in some banks and other financial firms to prevent bankruptcies that

could have exacerbated the panic in financial markets.

Although the global economy experienced its sharpest slowdown since the Great Depression, the

policy response prevented a global depression. Nevertheless, millions of people lost their jobs,

their homes and large amounts of their wealth. Many economies also recovered much more

slowly from the GFC than previous recessions that were not associated with financial crises. For

example, the US unemployment rate only returned to pre-crisis levels in 2016, about nine years

after the onset of the crisis.

In response to the crisis, regulators strengthened their oversight of banks and other financial

institutions. Among many new global regulations, banks must now assess more closely the risk

of the loans they are providing and use more resilient funding sources. For example, banks must

now operate with lower leverage and can’t use as many short-term loans to fund the loans that

they make to their customers. Regulators are also more vigilant about the ways in which risks

can spread throughout the financial system, and require actions to prevent the spreading of risks.
1. Why did Lehman Brothers experience financial problems

during the credit crisis?

Answer: Lehman Brothers were among the most admired company in US. They

were specialist in fixed income markets and private wealth management. In 2009,

Lehman Brothers filed for bankruptcy. It had low level of cash and its high degree

of financial leverage created more pressure. For every dollar of equity it had about

$30 of debt. In the run up credit crisis, Lehman brothers accumulated large

positions in mortgage backed securities. These positions were built by employing

high leverage. Lehman Brothers used short term credit to build long term asset is

potentially risky funding strategy. Short term credit needs to be rolled over and

renewed every once in a while within a year. If short term lenders perceive that

firm is in trouble, they can refuse to renew, leaving the firm in severe financial

distress.

These measures were perceived as being too little, too late. Over the summer,

Lehman's management made unsuccessful overtures to a number of potential

partners. The stock plunged 77% in the first week of September 2008, amid

plummeting equity markets worldwide, as investors questioned CEO Richard

Fuld's plan to keep the firm independent by selling part of its asset management

unit and spinning off commercial real estate assets. Hopes that the Korea

Development Bank would take a stake in Lehman were dashed on Sept. 9, as the

state-owned South Korean bank put talks on hold.

The news was a deathblow to Lehman, leading to a 45% plunge in the stock and a

66% spike in credit-default swaps (CDS) on the company's debt. The company's

hedge fund clients began pulling out, while its short-term creditors cut credit lines.

On Sept. 10, Lehman pre-announced dismal fiscal third-quarter results that

underscored the fragility of its financial position.

26

The firm reported a loss of $3.9 billion, including a write-down of $5.6 billion, and

also announced a sweeping strategic restructuring of its businesses. The same

day, Moody's Investor Service announced it was reviewing Lehman's credit

ratings, and also said Lehman would have to sell a majority stake to a strategic

partner to avoid a rating downgrade. These developments led to a 42% plunge in

the stock on Sept.

With only $1 billion left in cash by the end of that week, Lehman was quickly

running out of time. Last-ditch efforts over the weekend of Sept. 13 between

Lehman, Barclays PLC, and Bank of America (BAC)—aimed at facilitating

a takeover of Lehman—were unsuccessful. On Monday, Sept. 15, Lehman

declared bankruptcy, resulting in the stock plunging 93% from its previous

close on Sept.

Yet, a Lehman experienced financial problems as a result of its risky operations, it

apparently expected that it would be treated like a large commercial bank and be

rescued by bank regulators.

2. What are the steps should be taken by any financial

institutions during crisis?

Answer: The following steps are to be taken:

[Type here]

27
STEP 1: Allocate, Assign & Consolidate Staff Appropriate:

Strategic management is only successful when employees have the right tools to

perform effectively. To accomplish this, a company needs staff allocation solutions

that enable employees to balance different tasks.

STEP 2: Create SMART Growth Goals:

Smart growth is an urban planning and transportation theory that concentrates

growth in compact walkable urban centers to avoid sprawl. It also advocates

compact, transit-oriented, walkable, bicycle-friendly land use, including

neighborhood schools, complete streets, and mixed-use development with a range

of housing choices.

STEP 3: Stick to Your Larger Strategy

STEP 4: Keep Your Brand Consistent:

Use your logo and design elements consistently and provide access to employees.

Select the right topics for your brand's content calendar. Bring offline marketing

event into your online branding efforts Keep your brand's tone and

personality consistent across channels.

STEP 5: Hire a Marketing Professional to Help with Ad Support

STEP 6: Engage, and Don't Just Talk... Remember to LISTEN!:

Communication is all about connection. If you want to get people to want to

genuinely connect with you, then you have to figure out how to engage them first.

Engagement can be something of a buzzword, especially in today’s corporate

environment.

STEP 7: Focus on Yourself, Not on Your Competitors!:

Take your practice to the next level through deeper concentration and focus. With

our online-only course, you don't have to leave your house to learn meditation.

[Type here]
28

Contact Us. Spiritual Growth. Longchen Nyingthig lineage. Make A Donation.

Guided Meditations.

STEP 8: Continually Optimize Your Website & Other Digital Assets:

Digital Asset Optimization“ refers to the practice of taking inventory of a

company's ... and content sharing presents a different set of expectations

within the search experience. ... The same rules for web page SEO do not apply

when optimizing video, images, news or blog ... There's no doubt that SEO

is constantly changing.

STEP 9: Invest in Mobile, NOW

STEP 10: Think of New Potential Customers as PEOPLE:

Are you rolling out a new marketing plan or looking to give your current ... you

have to make decisions on who you think your target customers are, ... can locate

the people who are most likely to need your service based on.

STEP 11: Take Advantage of Video Marketing:

You only pay when someone chooses to watch at least 30 seconds or clicks on

your ad. Reach the Right Customers. No Budget Minimums. Be Seen On

YouTube. Pick Your Budget. Attract New Customers. Make A Video Ad. Types:

Bumper ads, Out stream Video ads.

STEP 12: Don't Be Afraid to Have a Sense of Humor

that are all unfavorable?

Before a crisis strikes, business owners should think about how a disaster would impact

employees, customers, suppliers, the general public and their company's value. A crisis

can strike any company anytime, anywhere. Advanced planning is the key to survival.

Here are seven critical steps to crisis management that every company should have in

place regardless of its size.

1.Have a plan--Every plan begins with clear objectives. The objectives during any crisis

are to protect any individual (employee or public) who may be endangered by the crisis,

ensure the key audiences are kept informed, and the organization survives. This written

plan should include specific actions that will be taken in the event of a crisis.

2. Identify a spokesperson--If the crisis could potentially impact the health or well-being

of customers, the general public or employees, it may attract media attention. To ensure

your company speaks with one voice and delivers a clear consistent message, a

spokesperson must be identified as well as prepared to answer media questions and

participate in interviews.

3. Be honest and open--Nothing generates more negative media coverage than a lack of

honesty and transparency. Therefore, being as open and transparent as possible can help

stop rumors and defuse a potential media frenzy. This transparency must be projected

through all communications channels: news interviews, social media, internal

announcements, etc.

4. Keep employees informed--Maintaining an informed workforce helps ensure that

business continues to flow as smoothly as possible. It also minimizes the internal rumor

mill that may lead to employees posting false reports on social media.

5. Communicate with customers and suppliers--You do not want customers and suppliers

to learn about your crisis through the media. Information on any crisis pertaining to your

organization should come from you first. Part of the crisis communications plan must

include customers and suppliers and how they will be regularly updated during the event.
6. Update early and often--It is better to over-communicate than to allow rumors to fill

the void. Issue summary statements, updated action plans and new developments as early

and as often as possible. Remember that with today's social media and cable news outlets,

we live in a time of the 24/7 news cycle. Your crisis plan must do the same.

7. Don't forget social media--The Ebola crisis and other recent major news events have

all confirmed that social media is one of the most important channels of communications.

Be sure to establish a social media team to monitor, post and react to social media

activity throughout the crisis.

A crisis that is not managed well can wipe out decades of hard work and company value

in a matter of hours. A well-managed crisis confirms that your company has the

processes and procedures in place to address almost any issue that may develop.

Another critical component of crisis management planning is the establishment of a

succession plan. You should clearly outline the necessary steps to follow if you suddenly

become unable to perform your duties. This plan may include selling the company, or

transferring ownership to family members or key employees.

What is most important is that you create the crisis management plan when everything is

running smoothly and everyone involved can think clearly. By planning in advance, all

parties will have time to seriously think about the ideal ways to manage different types of

crises.

As you develop your crisis management plan, seek advice from the experts that include

your leadership team, employees, customers, communications experts, investment

bankers, exit planners, lawyers and financial managers. Each of these individuals can

provide you valuable insight that could be critical should a crisis strike your company.

What role did shadow banking play in Lehman’s collapse?

The failure of Lehman Brothers negated the market’s conventional expectation that

regulators would serve as deposit guarantors for shadow banking conduits, leading to
convention uncertainty. Convention uncertainty caused a systemic bank run and flight to

quality. Regulators’ interventions restored market confidence that they would serve as

deposit guarantors of shadow banking conduits, reducing interbank funding pressures.

Their multifaceted response focused on the locus of precrisis fragility, including

stabilizing short-term funding markets; rehabilitating bank health transparently; and

reflating asset prices. The authorities’ memories of the Great Depression and the

extension of the United States’ sovereign credit to the financial system explain the

successful bailouts. Common critiques of the crisis response, including that Lehman fail

was a mistake; the response was politically illegitimate, and authorities adopted

premature austerity are interrogated.

our country?

Definitely there are factor that are barricading the growth in our

financial and economic sector. Accepting and analyzing all the

factors we can list as many as hundreds of factor hindering the

growth and economic developments but all the factor can be put

under the banner of 5 major factor.

Population : Bangladesh is a over populated country with a

population of 164.7 million and a growth rate of 1.00% annual.

Gradual increase population has squeezed the agricultural lands.

Lands are used for cultivation are now used for building houses

and commendation.

Natural calamities and environment problems :Bangladesh is a

fertilized land with different like calamities like- flood, storms,

drought, erosion.

They creates a lot of damages in every sector of economy and to

develop a good infrastructure and solution take a lot of time and

money.

Political instability : Political conditions of Bangladesh is not stable

since the birth of it. Being a democratic country public are

suffering from insecurities country which follows a democracy

from of government are yet in the hand pf politician and business

syndicate groups. Political conflicts inefficiency of land

administration, taxation, fraudulent, corruptions at government

level. Cartel of business syndicates are barricading the country

from prospering a head achieve development.

Inequality: Inequality regarding age , gender, language, place
creates superiority and minority and that distracts from the main

goals of development in every sections.