Problems and Steps to Remove Existing Problems in Banking Institution of Bangladesh

Problems and Steps to Remove Existing Problems in Banking Institution of Bangladesh

 Banking assignment

Problems and steps to remove existing problems in banking institution of Bangladesh


Banks have influenced economies and politics for centuries. Historically, the primary purpose of a bank was to provide loans to trading companies. Banks provided funds to allow businesses to purchase inventory, and collected those funds back with interest when the goods were sold. For centuries, the banking industry only dealt with businesses, not consumers. Banking services have expanded to include services directed at individuals, and risk in these much smaller transactions are pooled.

Definition of bank:

Bank is a business institution that receives surplus funds of individuals, trading or non-trading institution, government or private institution as deposit and surplus money with assurance of repayment against security in exchange of profit or interest to trading or non trading institution, government or non government institution who has deficit fund and demand for money , and to facilitate this process create various credit instrument and give facility of withdrawals of deposit as and when needed.

History of banking system in Bangladesh:

The banking system at independence consisted of two branch offices of the former State Bank of Pakistan and seventeen large commercial banks, two of which were controlled by Bangladeshi interests and three by foreigners other than West Pakistanis. There were fourteen smaller commercial banks. Virtually all banking services were concentrated in urban areas. The newly independent government immediately designated the Dhaka branch of the State Bank of Pakistan as the central bank and renamed it the Bangladesh Bank. The bank was responsible for regulating currency, controlling credit and monetary policy, and administering exchange control and the official foreign exchange reserves. The Bangladesh government initially nationalized the...

Similar Essays