To install click the Add extension button. That's it.

The source code for the WIKI 2 extension is being checked by specialists of the Mozilla Foundation, Google, and Apple. You could also do it yourself at any point in time.

4,5
Kelly Slayton
Congratulations on this excellent venture… what a great idea!
Alexander Grigorievskiy
I use WIKI 2 every day and almost forgot how the original Wikipedia looks like.
Live Statistics
English Articles
Improved in 24 Hours
Added in 24 Hours
What we do. Every page goes through several hundred of perfecting techniques; in live mode. Quite the same Wikipedia. Just better.
.
Leo
Newton
Brights
Milds

Financial system in Bangladesh

From Wikipedia, the free encyclopedia

The financial system of Bangladesh consists of three broad sectors. They are

  1. Formal sector
  2. Semi-formal sector
  3. Informal sector

The sectors have been categorized in accordance with their degree of regulation. The formal sector includes all regulated institutions like banks, non-bank financial institutions (FIs), insurance companies, capital market Intermediaries like brokerage houses, merchant banks etc.; micro finance institutions (MFIs).

The semi formal sector includes those institutions which are regulated otherwise but do not fall under the jurisdiction of Central Bank, Insurance Authority, Securities and Exchange Commission or any other enacted financial regulator. This sector is mainly represented by Specialized Financial Institutions like House Building Finance Corporation (HBFC), Palli Karma Sahayak Foundation (PKSF), Samabay Bank, Grameen Bank etc., Non-governmental organizations (NGOs) and discrete government programs.

The informal sector includes private intermediaries which are completely unregulated.

YouTube Encyclopedic

  • 1/3
    Views:
    501
    513
    98 117
  • Financial System of Bangladesh
  • Financial Job Market Scenario and other issues: A conversation with Mr. Kazi Mahfuz M. Rahman
  • Is Islamic Banking 100% Islamic Dr Zakir Naik

Transcription

Hello everyone, This is FinBan Arena. Today's topic is "Financial System of Bangladesh". First of all, what is a Financial System? The Financial System is a set of institutional arrangements through which financial surpluses in the economy are mobilized from surplus units and transferred to deficit spenders. The main constituents of any financial system are: Financial institutions, Financial instruments and Financial markets. To monitor financial system, there exists Financial Regulators. The modern name of financial institution is Financial Intermediary. A financial intermediary is a financial institution that connects surplus and deficit units of economy. Financial instruments are the evidences of financial claims of one party (holders) against another party (issuers). Financial Markets are the markets where the financial instruments are traded. In Bangladesh, Financial Regulators are • Bangladesh Bank, • Insurance Development & Regulatory Authority, • Bangladesh Securities & Exchange Commission, • Microcredit Regulatory Authority. Firstly, Bangladesh Bank acts as the Central Bank of Bangladesh through the enactment of Bangladesh Bank Order 1972. It regulates Banking financial institution and Non-banking financial institution in Bangladesh. Banking financial institution can be divided into two categories that are Scheduled Banks and Non-scheduled Banks. Scheduled Banks: The banks which get license to operate under Bank Company Act, 1991 (Amended upto 2013) are termed as Scheduled Banks. Scheduled Banks are classified into following types: • State Owned Commercial Banks, • Specialized Banks, • Private Commercial Banks, • Foreign Commercial Banks. Private Commercial Banks can be divided into two categories which are Conventional Private Commercial Banks and Islami Shariah based Private Commercial Banks. Non-Scheduled Banks: The banks which are established for special and definite objective and operate under the acts that are enacted for meeting up those objectives, are termed as Non-Scheduled Banks. On the other hand, Non-Banking Financial Institutions are those types of financial institutions such as Investment Company, Merchant Bank, Mutual Association, Mutual Company, Leasing Company etc. which are regulated under Financial Institution Act, 1993 and controlled by Bangladesh Bank. Thirdly, Insurance Development and Regulatory Authority was instituted as the regulator of insurance industry being empowered by Insurance Development and Regulatory Act, 2010. Insurance Company of Bangladesh can be alienated into two group which are Life Insurance Companies and General Insurance Companies Secondly, Bangladesh Securities and Exchange Commission performs the functions to regulate the capital market intermediaries and issuance of capital and financial instruments by public limited companies under the Securities and Exchange Commission Act, 1993. At present, capital market intermediaries are of following types: • Central Depository: this is The only depository system for the transaction and settlement of financial securities. • Stock Dealer, Stock Broker & Authorized Representative: Under SEC (Stock Dealer, Stock Broker & Authorized Representative) Rules 2000, these entities are licensed and they are bound to be a member of any of the two stock exchanges • Merchant Banker & Portfolio Manager: These institutions are licensed to operate under SEC (Merchant Banker & Portfolio Manager Rules) 1996. • Asset Management Companies: Asset Management Companies are authorized to act as issue and portfolio manager of the mutual funds which are issued under SEC (Mutual Fund) Rules 2001. • Credit Rating Companies: Credit Rating Companies in Bangladesh are licensed under Credit Rating Companies Rules, 1996. • Trustees/Custodians: According to rules, all asset backed securitizations and mutual funds must have an accredited trusty and security custodian. • Investment Corporation of Bangladesh: Investment Corporation of Bangladesh is a specialized capital market intermediary which was established in 1976 through the ordainment of The Investment Corporation of Bangladesh Ordinance 1976. This ordinance has empowered Investment Corporation of Bangladesh to perform all types of capital market intermediation that fall under jurisdiction of Bangladesh Securities and Exchange Commission. • Stock Exchanges: A stock exchange is a stock market where stock brokers and traders can buy and sell stocks, bonds, and other securities. Bangladesh has two Stock Exchanges which are Dhaka Stock Exchanges and Chittagong Stock Exchanges, Finally, being empowered by Microcredit Regulatory Authority Act, 2006, Microcredit Regulatory Authority is the regulatory body for Microfinance Institutions. Microcredit programs in Bangladesh are implemented by various formal financial institutions, specialized government organizations and Non-Government Organizations. Thank You...

Contents

Formal sector

The formal sector of the financial system of Bangladesh comprises two sub-sectors

  1. Financial Market
  2. Regulators & Institutions

Financial market

There are three types of financial markets in Bangladesh. They are:

  1. Money Market : Banks, Non-bank Financial Institutions, and Primary Dealers
  2. Capital Market : Investment Banks, Credit Rating Companies, and Stock Exchanges
  3. Foreign Exchange Market : Authorized Dealers.

Regulators and institutions

Bangladesh bank(Central Bank of Bangladesh):

regulate 58 scheduled & 5 non-scheduled banks, 34 Non-Banking Financial Institutions (NBFIs)

Bangladesh securities and exchange commission:

Stock Exchanges, Stock Dealers & Brokers, Merchants Banks, Asset Management Company (AMCs), Credit Rating Agencies etc.

Insurance Development & Regulatory Authority(IDRA)

18 Life and 44 Non-Life Insurance Companies

Microcredit Regulatory Authority(MRA)

599 Micro Finance Institutions (MFIs)

Semi-formal sector

The semi formal sector comprises some Specialized Financial Institutions:

  1. House Building Financial Corporation(HBFC)
  2. Palli Karma Sahayak Foundation(PKSF).https://www.pksf-bd.org/portal/
  3. Samabay Bank
  4. Grameen Bank

Informal sector

This page was last edited on 25 September 2018, at 07:29
Basis of this page is in Wikipedia. Text is available under the CC BY-SA 3.0 Unported License. Non-text media are available under their specified licenses. Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc. WIKI 2 is an independent company and has no affiliation with Wikimedia Foundation.