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BANKING SYSTEM OF BANGLADESH

In the world of contemporary ages significance of banking organization is immeasurable. Agricultural and industrial success cannot be dreamed without the lifestyle of an expedient banking program in the country. A shortage of a fair bank system is identified as a prime cause of backwardness of any nation in respect of the commerce and industry. Banks have been playing effective role in the capitalistic as well as socialistic countries of the world in their interior distribution of wealth. Banking system of Bangladesh has not also remained less advanced in the above banking atmosphere. After liberation the then govt of the new born country being acknowledged as Bangladesh on the globe society built all the existing banks nationalized by a great ordinance named as " Bangladesh Lender Ordinance" out dated the twenty six March, 72.

|Structural coming from of Banking system: |[pic] | |Later on govt of the self declared President H. M. Er shad | | |following a denationalization plan allowed institution | | |of banking institution inside the Private sector and unveiled three of | | |such nationalized banks inside the private sector. | | |[pic] |

composition of Bangladeshi banking method is somewhat similar with that of British program. Bangladesh Bank occupies the central location in the financial sector of Bangladesh. Whole Banking Sector is managed and work by central Bank. Every scheduled banking companies including their foreign reporter branches, exclusive banks, a lot of financial Institutions happen to be under the control over Bangladesh Financial institution. Many twigs of ads banks which of the Krishi Bank arre in operation throughput the country. Business banks enjoy the advantages of branch system of Banking in this region. But as the amount of branches allow me to share less while against the genuine need banking companies of this nation could not take the fuller benefit of the above system.

Role of banks inside the Economic development: -

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There should be no anonymity while about the importance of Financial in the Monetary development of a developing nation like Bangladesh. Banks functions some essential role which might be conducive to economic creation are the following: - В В В В В (i) To create generate capital market.

(ii) To play effective role throughout the economy by supplying capital. В В В В В (iii) To persuade out, bill of exchange etc . for easy mode of exchange В В В В В (iv) Financing of industries.

(v) Financing of Trade and Commerce and rendering companies to their chants. В В В В В (vi) Funding of Culture.

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(vii) To maintain harmony of foreign trade and check value hike on the market by managing credit.

Classification of financial institutions based on operation:

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Human needs are varied and unlimited. Therefore it are not so not likely if banking institutions of various character or type exist in the country. On the basis of actions and procedure banking institutions of the country could possibly be classified as follows.

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(a) Central Bank or perhaps Bangladesh Bank: - In consultation while using Govt. it maintains and controls the total banking sector of the country. Owing to its position, importance and guardianship handling role above the scheduled bamks it is also known as as Central Bank. This determines priority sector to get investment, charge of interet on loans and first deposit, controls, monitory system, models policy regarding foreign currency, overseas trade & commerce andabove all it acts for and on behalf of the govt. to support...

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