The Banking Sector Suffers from Discipline Deficit

In: Business and Management

Submitted By Antu42
Words 2936
Pages 12
Assignment-1 Topic
October 21, 2013
October 21, 2013
Submitted to
The Banking SECTOR SUFFERS FROM DISCIPLINE DEFICIT The Banking SECTOR SUFFERS FROM DISCIPLINE DEFICIT Barrister Arife Billah
LAW-200
Sec-1

Submitted by

Antu Biswas
102 0044 030

Introduction

The banking system of Bangladesh 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 with fourteen smaller commercial banks. 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 Bangladesh government initially nationalized the entire domestic banking system and proceeded to reorganize and rename the various banks. Foreign-owned banks were permitted to continue doing business in Bangladesh. The insurance business was also nationalized and became a source of potential investment funds. Cooperative credit systems and postal savings offices handled service to small individual and rural accounts. The new banking system succeeded in establishing reasonably efficient procedures for managing credit and foreign exchange.
Now, banks in Bangladesh are primarily of two types:
Scheduled Banks: The banks which get license to operate under Bank Company Act, 1991 (Amended in 2003) are termed as Scheduled 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. These banks cannot perform all functions of scheduled banks.
There are 52 scheduled banks in Bangladesh who operate under full control and supervision of Bangladesh Bank which is empowered to…...

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