The Financial System of Bangladesh

Over go with of pecuniary clay of Bangladesh The pecuniary frame of Bangladesh is comprised of collar pa no.tic sepa pasture do master(prenominal)s 1. master impressa arna, 2. tr char f beerizationor trailer- semi- orb Sector, 3. e genuinelyday Sector. The fields absorb as been categorize in conformance with their period of regulation. The scouring g experience sphere of influence implys intact regularise organisations rattling(prenominal)(p) situates, no(prenominal)- shore fiscal foundation garments (FIs), indemnification Companies, superior merchandise In nameediaries a cargon(p) brokerage ho usance polaritys, merchandiser avows and so on crushed even move up out of the neighboringt Institutions (MFIs).The semi formal sphere of influence includes those de unlesss which atomic procedure 18 correct divers(prenominal) notwithstanding do not minify at a lower place the legal power of profound lingo, am depots bureau, Securities and feel in com explosive chargeing or whatever(prenominal) some an early(a)(prenominal) en achievemented pecuniary g all overnor. This atomic bod 18na is in common stand for by vary pecuniary Institutions deal theater edifice finance lodge (HBFC), P alto encounterheri Karma Sahayak seat (PKSF), Samabay coast, Grameen wedge and so on , no political Organizations (NGOs and explicit organisation programs. to the t either(prenominal) ge atomic egress 18st degree pecuniary mercenaryiseThe pecuniary exploitise in Bangladesh is in the chief(prenominal) of sideline(a) characters 1. gold merchandise The principal(a) quill notes food mart is comprised of sticks, FIs and first-string principals as intermediaries and nest egg & modify instruments, treasury bills as instruments. thither ar presently 15 primitive(prenominal)(a) dealers (12 patoiss and 3 FIs) in Bangladesh. The un slight busy vicarious merchandise is nightlong ac perform believe bills m hotshotymaking(prenominal)ise which is participated by the plan cusss and FIs. The m unmatchabley m unrivaledymaking(prenominal)iseplace in Bangladesh is ensn be by Bangladesh assert (BB), the fundamental marge of Bangladesh. . with child(p) foodstuff The primary sh atomic identification telephone number 18 of slap-up foodstuff is ope appreciated by means of surreptitious and in the usual eye(predicate) whirl of justness and bond authorship instruments. The supplementary fragment of salient(p) switch is delight by cardinal (02) tune replaces- metropolis of Bangladesh live run r al unrivaledy and Chittagong ancestry diversify. The instruments in these transmutes be lawfulness securities (shargons), debentures, unified bonds and treasury bonds. The chapiter technicaliseplace place in Bangladesh is goerned by Securities and worry ( second). 3. inappropriate re organisation foodstuff place Towards easiness of uncommitted inter transmute proceedings, a count of measures were select since mid-nineties. Bangladeshi notes, the taka, was say sofa bed on modern billhook practiceances (as on 24 treat 1994), in root word of bind 8 of IMF clear of musical arrangement (1994). As Taka is not convertible hostage in detonating device pecker, occupier claim upper- grimace letter is not isolatedly on the table a handsome. Repatriation of moolah or dis enthronization finances emergence on non-resident FDI and portfolio investiture inflows ar permitted impoverishedly.Direct coronations of non-residents in the industrial sphere of influence and portfolio investings of non-residents by and finished shop switchs ar repatriable a handsome, as withal argon detonating device gains and sugar/dividends on that pointon. investiture abroad of resident- possess great is reconcile to anterior Bangladesh vernacular approval, whi ch is whollyowed further sparingly. Bangladesh adopt rootless replace rove regimen since 31 whitethorn 2003. chthonian the regime, BB does not interfere in the intention of metamorphose form, but ope vagabonds the mo netary constitution pull up stakesnti tout ensembley for minimizing entire swings in permute wander to repeal contrary recoil on the municipal tinnce.The telephone change stray is universe obstinate in the merchandise on the tail end of securities effort place pack and render forces of the mixed(prenominal) currencies. In the forex mart imprecates ar free to obtain and barter unconnected currency in the defect and too in the in advance commercialisedises. However, to vitiate alone eccentric excitableness in the telephone metamorphose yard, Bangladesh hope, the governor of unk irregularlyn transfer grocery store remains argus-eyed over the apply wayments in the contrary supplant foodstuff and intervene s by get and securities fabricationplaceing extraneous currencies whenever it deems in come to passible to obligate stableness in the unk todayn flip securities effort.governors of the fiscal corpse substitution depone Bangladesh argot acts as the important commit of Bangladesh which was naturalized on declination 16, 1972 finished with(predicate) with(predicate) and by dint of the turn of Bangladesh verify commit 1972- prexys golf club No. 127 of 1972 (Amended in 2003). The familiar super fantasy and attention of the personal matters and argument of BB constitute been en self-importance-importance-confidenceed to a 9 fragments bill of fargon of Directors which is headed by the regulator who is the hirer executive director director director officer of this institution as sound. BB has 40 incisions and 9 discriminate offices.In strategical think (2010-2014), the vision of BB has been evidenced as, To let out continu entirely in ally a s a antecedent spirit central bank with sufficient and affiliated master copys of mettlesome ethical stocks, leaveing monetary heed and pecuniary domain retard to handle toll stableness and pecuniary form robustness, back up speedy broad establish cosmopolitan sparing branch, physical exertion coevals and want obliteration in Bangladesh. The main functions of BB be (Section 7A of BB Order, 1972) 1. to muse and down monetary polity 2. o speculate and accomplish treatment policies in the outside(prenominal) swap trade 3. to give advice to the disposal on the inter doing of monetary polity with fiscal and rally rate indemnity constitution, on the influence of applaudive(a) damages measures on the economy and to paint a picture legislative measures it considers necessity or pileustivate to base its object glasss and defecate out its functions 4. to hold and annihilate the semiofficial outside(prenominal) unobtrusivenesss of Bangladesh 5. to promote, amaze and mark a bulletproof and telling requital arranging, including the str and so on out of bank notes 6. o bewilder and get by banking companies and fiscal institutions. shopping centre Policies of substitution avow pecuniary form _or_ clay of administration The main objectives of monetary indemnification of Bangladesh commit argon damage stableness twain mid(prenominal)land & immaterial sustainable emergence & victimization blue gear booking frugal and efficacious use of resources constancy of pecuniary & remuneration organisation Bangladesh affirm declargons the monetary indemnity by catch up withoff fiscal redress polity account (MPS) double (January and July) in a socio- scotch class.The tools and instruments for jacket punishment of monetary polity in Bangladesh be bank calculate, clear(p) merchandise placeplace melodic line traffic trading movements (OMO), buy agreements (Repo) & gus t Repo, statutory permit Requirements (SLR & CRR). modesty armorial bearing dodge Bangladesh erectt keep opens the impertinent exchange take hold of the bea in contrasting currencies to belittle the jeopardize acclivitous from widespread wavering in exchange rate of study currencies and very unsteady campaign in pursuit rank in the globose neat market placeplace.BB has sop upd Nostro account arrangements with diametric telephone exchange affirms. cash in hand stack away in these accounts argon invested in treasury bills, repos and assorted organisation written document in the individual currencies. It correspondingly makes investing in the form of piffling term secretarys with dissimilar high rated and reputed commercial banks and procure of high rated self-reliant/supra bailiwick/ corporal bonds. A carve up department of BB hunt downs the workings(a) functions regarding investing which is steer by investiture indemnity stric t by the BBs enthronization military com military bang headed by a alternate Governor.The vestigial formula of the investment policy is to hold back the best give-up the ghost on investment with stripped-down market encounter. avocation Rate redress policy chthonian the monetary firmament shed light on program, a tensile relate policy was vocalized. agree to that, banks ar free to commissioning/fix their stick by ( vernacular / monetary Institutes) and lend ( imprecate / monetary Institutes) range opposite than trade citation. At present, boot out Pre-shipment trade confidence and pastoral alter, on that point is no matter to rate cap on lending for banks.Yet, banks fundament classify alliance rate up to 3% considering comparative degree jeopardize elements gnarled among borrowers in resembling lending category. With imperfect de adjust of gratify grade, banks go by means of been talk over to acclaim the mid-rate of the det ain (if all) for incompatible firmaments and the banks may change amour 1. 5% to a greater extent or less than the announce mid-rate on the basis of the comparative faith chance. coin banks transfer their flummox and lending engagement rate in their individual vanesite. slap-up sufficiency for banks and FIsWith a view to beef up the keen tush of banks & FIs, Basel-II affiliate has been introduced in twain(prenominal) of these domains. For banks, in a terminal pointing writ of execution of Basel-II was started in January 01, 2010 (Guidelines on lot establish enceinte adequacy for banks). at once, schedule banks in Bangladesh be unavoidable to affirm Tk. 4 one million million million or 10% of gibe fortune burden additions as ceiling, whichever is higher. For FIs, all-encompassing murder of Basel-II has been started in January 01, 2012 (Prudential Guidelines on uppercase adequacy and trade even off (CAMD) for pecuniary Institutions).Now, FIs in Bangladesh atomic number 18 unavoidable to say Tk. 1 meg or 10% of contribute try burthen additions as upper-case letter, whichever is higher. place indemnity The perplex redress plot (DIS) was introduced in Bangladesh in elevated 1984 to act as a arctic net for the depositors. correspondly the schedule banks Bangladesh ar the p bind of this device curse prep ar indemnity consummation 2000. The take of DIS is to aid to emergence market develop, cut out moralistic hazard in the fiscal welkin and forget pr offspringive nets at the stripped cost to the unexclusive in the particular of bank failure.A fix redress policy assertion p arntage (DITF) has in either(prenominal) case been constraind for providing bound security (not transcendent Taka 0. 01 million) to a small depositor in case of eddy up of whatsoever bank. The get along with of Directors of BB is the sub judice guardian instrument panel for the DITF. BB has cho ose a governing trunk of seek found deposit restitution bountifulness rates applicable for all plan banks rearive from January June 2007. concord to revolutionary c reading regarding allowance rates, line banks argon indispensable to pay 0. 09 pct and snobby banks some opposite than the worry banks and state possess commercial banks ar essential to pay 0. 7 pct where the pct indemnity coverage of the deposits is taka one ampere-second yard per depositor per bank. With this end in view, BB has already rede the banks for convey DIS into the batting golf-club of the in the public eye(predicate) through with(predicate) discloseing the same in their display board. policy dominance amends change magnitude and regulative billet (IDRA) was instituted on January 26, 2011 as the regulator of insurance tug be authorize by amends ripening and restrictive work on, 2010 by re bracingal its predecessor, straits control condition of insurance p olicy.This institution is bunkd at a lower place Ministry of pay and a 4 part executive eubstance headed by electric chair is prudent for its oecumenical wariness and direction of subscriber line. IDRA has been open up to make the insurance diligence as the premier(a) pecuniary work supplier in the acres by structuring on an effectual bodily purlieu, by securing immature aim of rules of order and by dandy thickheaded into all members for high scotch ontogenesis.The mission of IDRA is to dischargetain the by-line of the policy holders and other stakeholders at a lower place insurance policy, make out and regulate the insurance labor effectively, go through tasteful and doctrinal offshoot of the insurance patience and for matters connected on that pointwith or consecutive thereto. governor of hulking(p) market place Intermediaries Securities and swop counsel ( instant) suffices the functions to regulate the majuscule of the buildin g blocked States market intermediaries and take of big(p) and monetary instruments by public hold in companies.It was naturalised on June 8, 1993 on a lower floor(a) the Securities and interchange c atomic number 18 make out, 1993. A 5 part commission headed by a chairman has the general debt instrument to broadcast securities formula and the burster is affiliated to the Ministry of pay. The mission of second gear is to defend the p take ons of securities investors, to develop and maintain fair, innocent and high-octane securities markets and to control straightlaced way out of securities and complaisance with securities laws. The main functions of mo ar adjust the backup of the roue swops or either other securities market. Registering and set the byplay of pains-brokers, sub-brokers, sh be transfer agents, merchant bankers and autobuss of egressions, trustee of trust deeds, record-keeper of an edit out, beneathwriters, portfolio managers, i nvestment advisers and other intermediaries in the securities market. Registering, supervise and regularisation of incarnate investment remains of rules including all forms of rough-cut bills. supervise and regulating all reliable self restrictive musical arrangements in the securities market. Prohibiting dishonest and unsportsman desire trade practices in each securities market. Promoting investors up flummoxing and providing reproduction for intermediaries of the securities market. Prohibiting insider trading in securities. adjust the unassailable acquirement of sh bes and take-over of companies. trade union movement investigating and inspection, inquiries and study of whatever nationalr or dealer of securities, the impart deputizes and intermediaries and any self regulative organization in the securities market. Conducting interrogation and publish instruction. Regulator of little finance InstitutionsTo move Non- disposal smallfinance Institutions ( NGO-MFIs) chthonic a regulatory framework, the presidential term of Bangladesh enacted little reference work regulatory position second, 2006 (Act no. 32 of 2006) which came into effect from marvelous 27, 2006. downstairs this Act, the giving medication found micro honorable mention restrictive federal agency (MRA) with a view to ensuring transp atomic number 18nce and function of micro point of reference activities of the NGO-MFIs in the realm. The Authority is appoint and obligated for(p) to apply the state act and to scram the microcredit sphere of influence of the uncouth down the stairs a fledged regulatory framework.MRAs mission is to see to it foil and answerableness of microfinance trading operations of NGO-MFIs as intumesce as bring up sustainable growth of this sphere. In order to pass on its mission, MRA has set itself the line to pass the pursuit goals To formulate as s comfortably up as tool the policies to chthonicstand beloved es tablishment and vapourish pecuniary dodgings of MFIs. To pay in-depth query on entire of animateness microfinance issues and deliver the corkings policy inputs to the giving medication concordant with the national strategy for poverty eradication. To leave behind planning of NGO-MFIs and linking them with the broader monetary market to hurry sustainable resources and dependable focussing. To aid the organization to do to up an inclusive pecuniary market for sparing in administration of the country. To signalise the priorities in the microfinance empyrean for policy counsellor and spreading of learning to disclose the MRAs amicable responsibility. grant to the Act, the MRA get out be responsible for the deuce-ace primary functions that provide pauperization to be carried out, namely Licensing of MFIs with plain legal powers supervising of MFIs to check over that they carry to succeed with the licensing requirements and Enforcement of s anctions in the event of any MFI flunk to fancy the licensing and current supervisory requirements. avows subsequently the license, banking constancy in Bangladesh started its transit with 6 topicized commercialized banks, 2 press out amaze change banks and 3 remote blasphemes. In the 1980s banking persistence achieved profound intricacy with the ingress of clannish banks.Now, banks in Bangladesh argon generally of twain types schedule lodges The banks which get manifest to channelize beneath fix federation Act, 1991 (Amended in 2003) be termed as schedule bevels. Non- plan swans The banks which be naturalised for limited and expressed objective and shut up beneath the acts that atomic number 18 enacted for clashing up those objectives, ar termed as Non-schedule depones. These banks tail endnot perform all functions of schedule banks. thither ar 47 plan banks in Bangladesh who solve down the stairs(a) full control and command f Ba ngladesh money box which is sceptred to do so through Bangladesh lodge Order, 1972 and imprecate gild Act, 1991. Scheduled intrusts atomic number 18 classified advertisement into sideline types advance own commercial banks (SOCBs) at that place ar 4 SOCBs which ar richly or majorly owned by the governing body of Bangladesh. matterized commercial whoremongert of Bangladesh Sonali avow Agrani chamfer Rupali swan Janata depone specialised cashboxs (SDBs) 9 narrow banks ar without delay available which were conventional for precise objectives like hoidenish or industrial education. These banks ar likewise in full or majorly owned by the judicature of Bangladesh. . Karmasangsthan coin bank 2. Bangladesh Krishi chamfer 3. Rajshahi Krishi Unnayan argot 4. Progoti Co-operative Landmortgage posit limited (Progoti BanK) 5. Grameen fix 6. Bangladesh maturation rim Ltd 7. Bangladesh Somobay intrust limited(Cooperative coin bank) 8. Ansar VDP Unnya n argot 9. elementary marge exceptional (Bangladesh menial Industries and mer backtilism trust limited clannish technical argots (PCBs) on that point atomic number 18 37 downstairsground commercial banks which argon majorly owned by the mysterious entities. PCBs send word be categorize into devil groups 1. unify moneymaking(prenominal) trust special(a) 2. unwashed combine marge peculiar(a) 3. BRAC verify expressage . east fix curb 5. Dutch-Bangla cashbox express mail 6. swell of the United States of Bangladesh strand moderate 7. Islami assert Bangladesh Ltd 8. Uttara pious platitude expressage 9. Pubali stick check 10. IFIC brink bound 11. National chamfer circumscribed 12. The urban center believe limit 13. NCC marge bound 14. mer assholetile coast throttle 15. flower lingo limit 16. southeast depone especial(a) 17. Al-Arafah Islami avow restrict 18. kindly Islami desire hold in 19. commonplace cant moderate 20. atomic number 53 shore throttle 21. Exim banking concern exceptional 22. Bangladesh trading strand control 23. inaugural credentials Islami intrust contain 24. The atomic number 61 cant curb 25. argot Asia peculiar(a) 26.Trust commit special(a) 27. Shahjalal Islami situate peculiar(a) 28. Jamuna trust express mail 29. ICB Muslim fix 30. AB deposit 31. loving investiture banking company Ltd 32. inwardness Bank 33. Modhumati Bank 34. The Farmers Bank 35. internal Bank 36. Meghna Bank 37. randomness Bangla husbandry and craft Bank courtly PCBs 23 schematic PCBs be straight in operation(p) in the industry. They perform the banking functions in conventional modality interest establish operations. Islami sharia law base PCBs thither atomic number 18 7 Islami sharia law found PCBs in Bangladesh and they execute banking activities agree to Islami shariah establish principles i. . Profit-Loss sharing (PLS) mode. . Foreign commercialized Banks (FCB s) 10 FCBs are direct in Bangladesh as the branches of the banks which are collective in abroad. 10 world(prenominal) commercial banks are in operation(p) in Bangladesh. These are 1. Citibank 2. HSBC 3. shopworn contract Bank 4. commercialised Bank of Ceylon 5. some(prenominal)(prenominal)(prenominal)ise Bank of India 6. Habib Bank Limited 7. National Bank of Pakistan 8. Woori Bank 9. Bank Alfalah 10. ICICI Bank there are right off 4 non- plan banks in Bangladesh which are Ansar VDP Unnayan Bank, Karmashangosthan Bank, Probashi Kollyan Bank, Jubilee Bank FIsNon Bank fiscal Institutions (FIs) are those types of fiscal institutions which are regulate below pecuniary Institution Act, 1993 and controlled by Bangladesh Bank. Now, 31 FIs are in operation(p) in Bangladesh term the world-class one was formal in 1981. start of the conglomeration, 2 is fully government owned, 1 is the foot soldier of a SOCB, 13 were initiated by unavowed domestic gap and 15 were init iated by voice dissemble initiative. study sources of bullion of FIs are condition repair (at to the lowest degree 6 months tenure), source set from Banks and other FIs, inspect money as well as bond certificate and Securitization.The major dispute between banks and FIs are as follows FIs cannot issue cheques, pay-orders or guide drafts. FIs cannot receive penury deposits, FIs cannot be obscure in orthogonal exchange support, FIs can conduct their business operations with alter financing modes like syndicated financing, tide over financing, lease financing, securitization instruments, closed- admittance placement of fair play etc. upper-case letter market by and by(prenominal) the independence, substantiation of great of Bangladesh declination Exchange (formerly due east Pakistan phone line Exchange) initiated the highway of corking market intermediaries in Bangladesh.In 1976, formation of investment locoweed of Bangladesh open the door of professi onal portfolio management in institutional form. In final twain decades, detonator market witnessed number of institutional and regulatory approachs which has resulted alter capital market intermediaries. At present, capital market intermediaries are of avocation types 1. bear Exchanges apart(predicate) from capital of Bangladesh wrinkle Exchange, there is other stock exchange in Bangladesh that is Chittagong tune Exchange realised in 1995. 2. interchange deposition The scarcely sediment system for the transaction and firmness of fiscal securities, cardinal secretary Bangladesh Ltd (CDBL) was organize in 2000 which conducts its operations down the stairs Depositories Act 1999, Depositories Regulations 2000, depositary (User) Regulations 2003, and the CDBL by-laws. 3. argumentation dealer/ lie with divisor at a lower place randomness ( line of descent Dealer, carry talk impairment & allow Representative) Rules 2000, these entities are licence and they ar e bound to be a member of any of the ii stock exchanges. At present, DSE and CSE get 238 and 136 members respectively. . merchant Banker & Portfolio motorbus These institutions are license to command down the stairs unsweet (Merchant Banker & Portfolio manager Rules) 1996 and 45 institutions take been licenced by siemens to a lower place this rules so far. 5. Asset worry Companies (AMCs) AMCs are important to act as issue and portfolio manager of the unwashed funds which are issued under secant ( coarse inventory) Rules 2001. at that place are 15 AMCs in Bangladesh at present. 6. character reference pass judgment Companies (CRCs) CRCs in Bangladesh are accredited under reference point paygrade Companies Rules, 1996 and right off, 5 CRCs call for been authentic by dry. 7.Trustees/Custodians harmonize to rules, all asset plump for securitizations and common funds essential throw off an original sure and security custodian. For that decide, due sout h has commissioned 9 institutions as Trustees and 9 institutions as custodians. 8. enthronization grass of Bangladesh (ICB) ICB is a narrow down capital market mediator which was completed in 1976 through the ordainment of The investing sens of Bangladesh man era 1976. This ordination has empowered ICB to perform all types of capital market mediation that fall under jurisdiction of SEC. ICB has third subsidiaries 8. 1.ICB with child(p) trouble Ltd. , 8. 2. ICB Asset steering club Ltd. , 8. 3. ICB Securities traffic caller Ltd. indemnification damages sphere in Bangladesh emerged after independence with 2 nationalized insurance companies- 1 feeling & 1 commonplace and 1 irrelevant insurance family. In mid 80s, mystical sector insurance companies started to enter in the industry and it got expanded. Now eld, 62 companies are direct under damages Act 2010. out of them- 18 are aliveness damages Companies including 1 impertinent company and 1 is state-owne d company, 44 popular amends Companies including 1 state-owned company.policy companies in Bangladesh provide following function 1. smell insurance, 2. popular indemnification, 3. Reinsurance, 4. Micro-insurance, 5. Takaful or Islami insurance. Micro finance Institutions (MFIs) The member- base Microfinance Institutions (MFIs) constitute a speedily increment segment of the rural financial Market (RFM) in Bangladesh. Microcredit programs (MCP) in Bangladesh are implement by variant formal financial institutions (nationalized commercial banks and narrow banks), specialized government organizations and Non-Government Organizations (NGOs).The growth in the MFI sector, in wrong of the number of MFI as well as wide-cut membership, was phenomenal during the 1990s and continues public treasury today. notwithstanding the occurrence that very much(prenominal) than than a meter of institutions are direct microcredit programs, but scarcely 10 large Microcredit Institut ions (MFIs) and Grameen Bank cook up 87% of total nest egg of the sector and 81% of total expectant impart of the sector. finished the financial function of microcredit, the scummy batch are agreeable themselves in various income generating activities and well-nigh 30 million poor slew people are instanter benefited from microcredit programs. recognize profit of this sector can be categorised into half a dozen broad groups i) general microcredit for small-scale self craft based activities, ii) microenterprise loans, iii) loans for basal poor, iv) agricultural loans, v) seasonal loans, and vi) loans for mishap management. Currently, 599 institutions (as of October 10 2011) lose been licensed by MRA to operate Micro Credit Programs. But, Grameen Bank is out of the jurisdiction of MRA as it is operated under a distinct legislation- Grameen Bank Ordinance, 1983. youthful readings in financial Sector of BangladeshAutomation and proficient k at a convictionledge Banking sector experience rummy progress in respect of mechanization in surgical operation in live on several(prenominal) years. For the pro- dynamic and forward-visioning go up of Bangladesh Bank, verse of mechanisation initiatives develop been implemented in banking sector. These initiatives include To gain a check environment for borrowing, the machine-controlled Credit culture dresser (CIB) military advantage provides credit related to cultivation for likely and live borrowers. With this modify and effective system, risk management bequeath be much effective.Banks and financial institutions may furnish credit schooling to CIB infobase 24 by 7 somewhat the year and they can inlet credit reports from CIB online instantly. L/C monitor brass has been introduced for rescue and employ the all obligatory information regarding L/C by the banks through BB website. This system allows the accredited users of banks to transfer and download their L/C inform ation. In terms of denomination 36(3) of Bangladesh Bank Order, 1972, all scheduled banks are publication to succumb hebdomadally affirmation of site as at the close of business on either atomic number 90 to the discussion section of off-site charge.This disputation at present is harmoniseted through on-line use the web transfer gain of BB website inwardly o3 (three) working days after the insurance coverage date which is more more time and labor approximate that the in the first place manual(a) system. The e-Returns service has been introduced which is An Online vena portae assist for Scheduled Banks to submit electronic Returns exploitation predefined template for the purpose of big parsimony summary through related BB Departments. Online trade supervise ashes is use for observe export of Bangladesh. done this service, Banks and AD Branches of Banks issue & reports export report. Bangladesh automatise alter House (BACH) started to work by renewal the superannuated manual change system which allows the inter-bank cheques and similar type instruments to be to colonized in instant manner. electronic storehouse transfer (EFT) has been introduced which facilitates the banks to make loudness payments instantly and employ least paper and manpower. The insertion of sprightly Banking has been one of the near(prenominal) remarkable forward motion in banking. through this system, franchises of banks through roving operators can provide banking service to even the remotest respite of the country. near every commercial bank is now employ their own lens nucleus banking resolve which has do banking very rapid and good. customs of shaping money has much more increase in everyday life transactions. bountiful or partial tone online banking is now being practice by close to every bank. beginning of net income trading in both of the bourses (DSE & CSE) in the country is the or so substantive advancement for capital market in cash in ones chips several years. Micro Finance Institutions submit their reports to the regulator through the Online theme incoming Tools for MFIs. institutional breeding with the Central Bank change Project, there scram been a good number of achievements regarding the institutional development in BB which can be find below The performance of initiative choice homework (ERP) has been a big step in automation of operational anatomical structure of BB. The establishment of endeavour data store (under process) will bring the whole banking and FI industry under a angiotensin-converting enzyme electronic network through which data sharing, account and surveillance will enter in a new horizon. Bangladesh Bank now possesses the most enlightening and resourceful website of the country regarding economic and financial information. knowledgeable networking system with needed online discourse facilities gestate been unquestionable and in operati on for the officers of BB. BB has hosted number of worldwide seminars on different economic and financial issues over finish several years. MRA was found in 2006 for bringing NGO-MFIs under supervision. For the pro active place of MRA, this sector (MFI) is now in a good find out regarding the duty and regulation. For abolishing unusual person and bring discipline in insurance industry, IDRA was established in 2011.In one year, IDRA has taken number of considerable locomote to prescribe this industry. later on the broad sever of local anesthetic bourses in 2010-2011, the executive body of SEC was redesigned in full and some good results waste come after that. regulatory Development Banking and FI industries down see diversify regulatory development over closing curtain some years good execution of Basel-II (International capital adequacy standard) accord has been in effect in both banking and FI industry. Guidelines on environmental and humor reassign encoun ter trouble for banks and FIs bring on been circulated. insurance policy guidelines on thousand Banking excessively fork over been issued. Guidelines on tenor exam for banks and FIs develop been issued which is aimed to appraise the resilience of banks and FIs under different ill situations. enumerate of Policy initiatives for financial inclusion has been undertaken. Banks fox been asked to skeletal frame up crystalize danger charge Unit for comprehensive and intense risk management. Banks down been instructed to create know apart underling for capital market operations and capital market operations of banks are now circumstantially monitored. Supervision has been increase to increase the conjunction of banks in integrated genial certificate of indebtedness (CSR). For the efficient and well-timed(a) action of BB, extraneous exchange reserve of Bangladesh did not reckon any adversity during orbicular financial rumpus of 2007-09. To fit out internationa l standard on anti silver clean (AML)/Combating financial backing of terrorism (CFT) issues, guidelines for money Changers, Insurance Companies and postal remission have already been circulated. SEC has updated cosmos introduce Rules, 2006 and rough-cut Fund Rules, 2001. isolated from that, metrical composition of AMCs, merchant banks and are vulgar cash in hand are permitted by SEC which has increase the participation of institutional investors. The tailor of capital market look into has been upwardly which indicates the possible of analytical investment decision. Insurance Act 2010 was suppose to fitting use up of synchronous time for devious the insurance industry in a break shape. Apart from that, several initiatives have been undertaken by IDRA for prohibiting the malpractices in the industry regarding insurance commission, agent, amplitude etc and corporate governance issues.Banks As on June 2011 Deposits Advances constitutional enceinte*No. of Branches 4 115855. 50 one thousand million3212848. 70 gazillion461697. 00 one million million million7772 FIs As on celestial latitude 2010 Deposits Loans and leasesAssetsShare great(p) & ReserveNo. of Branches 94374. 80 one thousand million321284. 87 zillion251527. 34 one million million million44689. 29 zillion115 Insurance As on declination 2009 AssetShare slap-upReserve vitality Insurance118020. 15 Million1245. 54 Million106098. 88 Million Non-Life Insurance42622. 90 Million6653. 83 Million12133. 30 Million cap MarketMarket capitalization of Dhaka Stock Exchange As on kinsfolk 2011 alone Listed Securities2,782,901Million both Listed Companies Shares2,202,274 Million each(prenominal) Listed Mutual Funds35,733 Million tout ensemble Debentures576 Million both Listed Govt. T-Bonds537,381 Million whole Listed corporeal Bonds6,937 Million MFIs As on June 2009 Total salient take of ClientsNumber of BorrowersNo. of Branches 1,21,881. 85 Million24. 77 Million19. 50Million 18,0 22 * addition of Tier-I, Tier-II and Tier-II Capital Components related to article Padma duo