The Financial System in Bangladesh
A financial system is a system that to channels funds from lenders to borrowers, to create liquidity and money, to provide a payments mechanism, to provide financial services such as insurance and pensions and to offers portfolio adjustment facilities. A developed financial system is one that has a secure and efficient payment system, security market and financial intermediaries that arrange financing and derivative markets and financial institutions that provide access to risk management instruments.
The present structure of the financial system in Bangladesh comprises of various types of banks, insurance companies, and non-bank financial ...view middle of the document...
These are state-owned commercial banks (SCBs), state-owned development financial institutions (DFIs), private commercial banks (PCBs) and foreign commercial banks (FCBs).
Non-Scheduled Banks: The banks which are established for particular and explicit objective and operate under the acts that are endorsed for meeting up those objectives, are termed as Non-Scheduled Banks. These banks do not have the rights to carry out the activities of scheduled banks. There are now 4 non-scheduled banks in Bangladesh which are:
* Ansar VDP Unnayan Bank,
* Karmashangosthan Bank,
* Probashi Kollyan Bank,
* Jubilee Bank
Non-Banking Financial Institutions
Non Bank Financial Institutions (NBFIs) in Bangladesh have been playing a significant role in the financial system of the country. This sector has emerged as increasingly important segment of the financial system because of the rapidly rising demand for long term financing and equity type services.
Non Bank Financial Institutions (FIs) are those types of financial institutions which are regulated under Financial Institution Act, 1993 and controlled by Bangladesh Bank. Now, 30 NBFIs are operating in Bangladesh while the maiden one was established in 1981. Out of the total, 2 is fully...